64.11 -0.19 (-0.30%)
Pre-Market: 8:05AM EDT
|Bid||63.09 x 1000|
|Ask||64.31 x 800|
|Day's Range||64.16 - 64.91|
|52 Week Range||48.42 - 75.24|
|Beta (3Y Monthly)||1.82|
|PE Ratio (TTM)||8.95|
|Forward Dividend & Yield||2.04 (3.21%)|
|1y Target Est||N/A|
(Bloomberg) -- After a brief respite at the end of last week, Argentina’s debt is getting hammered again.The nation’s offshore notes approached new lows on Monday, close to wiping out the small rebound from late last week, after the country was downgraded deeper into junk territory by two of the three biggest ratings companies and the Economy Minister Nicolas Dujovne resigned.The extra yield investors demand to own Argentine bonds over U.S. Treasuries widened 205 basis points to 18.58 percentage points, according to a JPMorgan index, while 100-year securities fell 4.7 cents to 47.4 cents on the dollar, approaching last week’s record low. The upfront cost to protect Argentina’s debt for five years using credit default swaps rose to 52% from 47% on Friday. Local markets are closed on Monday for a holiday.“You’re going to see plenty more volatility between now and the end of October,” said Graham Stock, a senior emerging-market sovereign strategist at BlueBay Asset Management in London. Measures taken by President Mauricio Macri last week “won’t be enough” to help him in the Oct. 27 election, and he risks pursuing “too populist an economic agenda” in the lead-up to the vote, Stock said.Macri’s measures to support the economy include freezing fuel prices for 90 days, increasing the minimum salary and modifying taxes paid by workers.Default RiskDespite a two-day respite at the end of last week, the nation’s credit default swaps still imply a 86% chance of a default in the next five years amid expectations the populist opposition will win October’s election. The brutal slump in the peso made the country’s large pile of debt much harder to repay. As of March 31, Argentina had $33.7 billion in foreign-currency debt payments due by year-end, the vast majority in short-term Treasury bills.In an interview on Bloomberg TV, Alejo Czerwonko, an emerging-markets strategist at UBS Wealth Management, said a surprise in the first round for Macri would bolster assets, but that it was very unlikely. Argentines vote in presidential elections on Oct. 27 and the next government would take over on Dec. 10.The sharp market sell-off was prompted by a surprise result in the Aug. 11 primary election showing opposition candidate Alberto Fernandez with a commanding lead over Macri.A delegation from the International Monetary Fund is expected to arrive in Buenos Aires this week for meetings with the government and the opposition ahead of a decision on whether to disburse about $5 billion of additional funds next month. The nation’s reserves fell $3.9 billion last week to $62.4 billion, the lowest since December, aggravating concerns about the country’s finances.Opposition LeaderIn several interviews with local newspapers on Sunday, Fernandez spoke about what he considered successful debt talks during his time as cabinet chief that led to a restructuring of bonds and the need to negotiate with bondholders. While he didn’t say he would necessarily push for a restructuring he said that “no one knows better than us the damage caused by default.” On Monday, his economic adviser, Guillermo Nielsen, said Fernandez has no plans to restructure the country’s debt.“While he added some clarity on his views, he did not shed any light on future cabinet members, which would be necessary to understand his economic policies more concretely,” Citigroup Inc. strategists led by Dirk Willer wrote on a report on Monday.Late last week, Fitch Ratings cut Argentina’s long-term issuer rating to CCC from B, putting the South American nation on par with Zambia and the Republic of Congo. S&P followed, lowering the country’s sovereign rating to B- from B and slapping a negative outlook on it.“Uncertainty continues on the private sector’s predisposition to roll over government debt and hold pesos while depreciation stresses the government’s high financing needs,” S&P analyst Lisa Schineller wrote in a statement accompanying the downgrade. Fitch’s said the deterioration in the macroeconomic environment “increases the likelihood of a sovereign default or restructuring of some kind.”(Adds Nielsen comment on 10th paragraph.)\--With assistance from Sydney Maki.To contact the reporter on this story: Aline Oyamada in Sao Paulo at firstname.lastname@example.orgTo contact the editors responsible for this story: Julia Leite at email@example.com, Daniel CancelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- It’s hard not to see HSBC Holdings Plc’s exclusion from China’s interest-rate reform as a snub.Hong Kong’s biggest bank wasn’t included in a list of 18 lenders that will participate in pricing for a new loan prime rate that the People’s Bank of China will start releasing Tuesday. The roster includes foreign lenders Standard Chartered Plc and Citigroup Inc., which have smaller China businesses than HSBC.It’s the latest sign that all may not be well in HSBC’s relations with Beijing, after a turbulent period that has seen the departures this month of Chief Executive Officer John Flint and the bank’s Greater China head, Helen Wong. HSBC shares fell 13% in Hong Kong this year through last Friday, compared with a decline of less than 1% in the benchmark Hang Seng Index.London-based HSBC, which is also Europe’s biggest bank, has made China a key plank of its growth strategy. The lender is the third-largest corporate bank in the country by market penetration, according to data provider Greenwich Associates LLC. That places it ahead even of China Construction Bank Corp. and Agricultural Bank of China Ltd., two of the nation’s big four state-owned lenders. Standard Chartered and Citigroup don’t rank among the top five, according Gaurav Arora, head of Asia Pacific at Greenwich.It could be argued that HSBC’s focus on big corporate clients means it’s less attuned to the loan market for small and medium-size enterprises that are the focus of China’s changes to its interest-rate regime. That would be a stretch, though. Corporate banking is a scale game. And even though StanChart may have a greater preponderance of smaller clients, HSBC surely has many similar customers. Citigroup’s inclusion makes more sense: It’s the only U.S. bank in China with a consumer-lending business that spans credit cards to SME loans. The list also includes less influential domestic lenders such as Bank of Xian Co. Those searching for reasons why HSBC may have fallen into China’s bad books may point to Huawei Technologies Co. Liu Xiaoming, China’s ambassador to the U.K., summoned Flint to the embassy earlier this year to interrogate him over the bank’s role in the arrest and prosecution of Meng Wanzhou, the chief financial officer of Huawei, the Financial Times reported Monday. The then-CEO told him HSBC had no option but to turn over information that helped U.S. prosecutors build a case against Meng, the FT said. On Aug. 9, an HSBC spokeswoman denied that Wong’s departure as Greater China head was linked to any issue involving Huawei, pointing out that she announced her resignation before Flint’s departure. Still, the bank has faced criticism in China’s state-owned media over its role in the case. The way HSBC helped the U.S. Department of Justice acquire documents concerning Huawei was unethical, the Global Times reported previously, citing a source close to the matter. The bank was likely to be included in China’s first “unreliable entity” list of companies that have jeopardized the interests of Chinese firms, it said.The timing of China’s interest-rate snub won’t do anything to quell jitters, coming a day after Cathay Pacific Airways Ltd. CEO Rupert Hogg resigned amid criticism from Chinese regulators over its stance on employee participation in Hong Kong’s protests. Beijing is becoming more muscular in its attitude to the city’s unrest and foreign-owned businesses aren’t being spared. In an increasingly politicized environment, even a business that’s been around for 154 years will have to tread carefully. To contact the author of this story: Nisha Gopalan at firstname.lastname@example.orgTo contact the editor responsible for this story: Matthew Brooker at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- JPMorgan Chase & Co. plans to host a conference call on Tuesday to help clients make sense of markets after a week of wild swings for stocks and bonds.“In the wake of a rather violent decline in yields, inversion of the curve, and volatility in equity markets, we consider the role of poor liquidity and systematic flows in exacerbating these market moves,” JPMorgan strategists led by Marko Kolanovic wrote in an invitation to clients obtained by Bloomberg. A spokeswoman for the lender confirmed the event.The meeting comes after U.S. equities suffered one of the deepest sell-offs of the year on Aug. 14 and a key portion of the U.S. Treasury yield curve inverted for the first time in 12 years, stoking fears of a recession. President Donald Trump held a conference call that day with the chief executive officers of JPMorgan, Bank of America Corp. and Citigroup Inc.Kolanovic and strategist Munier Salem plan to address the bout of unusual illiquidity in U.S. equities and discuss the extent to which high-frequency trading is to blame for drops in market depth, according to the invitation. Joshua Younger, a fixed-income strategist, will lead a discussion on convexity hedging in rate markets.The bank said last week that measures of market depth in U.S. equities, Treasuries and currencies relative to the rest of the year have fallen below the average since 2010 -- a sign that market players don’t have as much capacity to absorb the trade-driven trends sweeping assets.Some Wall Street trading desks have warned that the sudden rupture of volatility could cause quant-driven funds to dump billions of dollars of stocks.(Adds conference call with president in third paragraph.)To contact the reporter on this story: Michelle F. Davis in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Josh Friedman, Linus ChuaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Now we know the real reason President Donald Trump has been so keen for the Federal Reserve to lower interest rates. It seems that the nation’s chief executive was mulling a deal out of his previous career as a real estate mogul.
It's hard to find a bargain stock with dividends growing quickly. Often they are overvalued and not worth buying. Another problem is these kind of stocks can't sustain the dividend growth. The trick to uncovering the best stocks to buy now is to search for fast-growing dividend stocks with low earnings-payout ratios. Even better if they're cheap.For example, fast growing tech companies reinvest their earnings in their business. They can't afford to pay dividends without sacrificing growth. Amazon (NASDAQ:AMZN) has never paid out a dividend but is growing very fast. The stock is not cheap as investors rely on steady growth, but its investors are willing to forgo dividends.Among the best stocks to buy now for value and income are business development companies (BDC). BDCs often raise their dividends at high rates, borrowing money or continually selling equity to finance dividend growth. Their payout ratios are high and the companies tend to be highly leveraged as a result.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBelow are five stocks selling below 10x earnings whose dividends have been rising 15% or more per year. The companies pay out less than 30% of their earnings in dividends. They reinvest the rest to maintain consistent growth. * 10 Cheap Dividend Stocks to Load Up On None of these stocks are turnarounds. They have been growing consistently for the past several years. You can rely on them to continue to increase their dividends at these rates. Best Value Stocks: CIT Group (CIT)2-Year Dividend Growth: +133%CIT Group (NYSE:CIT) is a bank holding company that has transformed itself into a vibrant, growing commercial lender after its demise in 2009. Earnings have been growing nicely as the company has divested itself of loss making divisions.In Q2 2018, CIT's dividends were at an annual rate of 64 cents. Three quarters later in Q1 2019, CIT raised the rate 56% to $1.00. And just recently in July CIT did it again - hiking the dividend to $1.40, up 40%.Analysts expect CIT to earn $4.96 this year. Its dividend represents just 28% of expected earnings. The stock now yields 3.1% and has a price-to-earnings ratio of 9.2x.CIT has been simplifying its commercial lending business, selling off non-core units, and strengthening its capital ratios. Its recent stock buybacks and dividends increases show that this is a very shareholder friendly company.Expect the company to continue to reward shareholders with consistent earnings and dividend increases. Bank of America (BAC)2-Year Dividend Growth: +50%Bank of America (NYSE:BAC), the U.S. bank holding company, has increased its quarterly dividends over the past two years from an annual rate of 48 cents to 72 cents, paid in July. In addition, BAC has been showing good operational growth, despite interest rate headwinds.BAC sports a 2.54% dividend yield and trades for just 10 times earnings per share. BAC reported Q2 earnings of 74 cents per share, which was up 17% over the past year.BAC can comfortably afford its dividend. The 72 cents annual dividend rate represents just 28% of its expected earnings per share of $2.84 for this year.BAC has a large and stable asset base with its consumer deposits and high earnings quality. It is well diversified with its Merrill Lynch brokerage arm, and an asset management business with $220 billion in assets under management. Their stable fees strengthen its lending business. * 10 Best Stocks to Buy and Hold Forever BAC has consistently grown its dividends. They rose 25% in 2018 and 20% in 2019. Expect the stock to continue to increase its earnings and dividends over the next year at a similar rate. Boyd Gaming (BYD)2-Year Dividend Growth Rate: +40%Boyd Gaming (NYSE:BYD) is a casino operator mainly focused on niche markets such as the local, non-Strip gambler in Las Vegas. Its revenue and earnings have picked up nicely over the past several years as U.S. economic growth, and disposable income, has grown.BYD has increased its dividend 40% over the past two years. This includes a 20% increase in 2018 and recently 17% increase to 28 cents on an annual basis. This represents just 16% of its expected earnings this year of $1.78 per share.BYD's dividend yield is 1.15%. There is plenty of room for the dividends to grow as Wall Street expects that the company will continue to show consistent earnings growth. As sports betting picks up speed across new states, now that the Supreme Court has OK'd it, BYD expects to participate in the growth in that arena.BYD is play on the economy continuing to steam ahead and the regional consumer's willingness to dispose of income at BYD's casinos. Expect the dividend to rise substantially over the next several years. Delta Air Lines (DAL)2-Year Dividend Growth: +32%Delta Air Lines (NYSE:DAL) has increased its dividend by over 32% over the past two years. In 2018 the dividend rose 14.8% and recently DAL set the annual rate at $1.61, up 15.1%. The stock is a general play on economic growth as well as its moves to diversity earnings.Delta's recent Q2 revenues were up 9% year-over-year. Earnings shot up an incredible 32%. Analysts are especially optimistic about the new credit card that DAL is going to co-brand in partnership with American Express (NYSE:AXP).The stock is still cheap, though. It trades at just 8.4x earnings which are expected to reach $7.10 for the year.Given that its dividend rate is $1.61, the pay-out ratio is 22%. So there is plenty of room for the company to continue to increase the dividend. Moreover, the stock sports a very attractive dividend yield of 2.71%. * 7 Great No-Load Mutual Funds for Retirement Portfolios Investors can expect DAL to consistently raise the dividend over the next several years. Citigroup (C)2-Year Dividend Growth: +59.4%Citigroup (NYSE:C) has raised its dividend almost 60% in the past two years. The dividend was up 41% in 2018 and this year Citigroup has hiked it another 13.3%.Citigroup is a play on strong economic growth in the U.S. The company has consistently produced solid revenue and earnings growth in the past 5 years.The company is well positioned to withstand any interest rate headwinds, should rates continue to fall. Deposits and loans have continued to grow despite interest rate cuts. Revenue was up 4% in the first half of 2019 and net income rose 13%.Citigroup's stock trades for less than 9x earnings per share. The dividend yield is very attractive at 3.1%. This is more than investors can make in their money market accounts.With the dividend set at $2.04, and earnings expected to be $7.64 this year, the payout ratio is only 26.7%. So there is still plenty of room for Citigroup to raise the dividend as earnings grows.Investors can expect Citigroup to raise its dividend over the next several years at a similar rate in 2019.As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 5 Value Stocks With Fast-Growing Dividends appeared first on InvestorPlace.
Investing.com – General Electric (NYSE:GE) surged on Friday, clawing back some its losses from a day earlier after its CEO Larry Culp bought shares and analysts downplayed allegations that it was involved in financial foul play.
Stock markets are shrinking before our eyes. The available pool of US equities has contracted by 2.5 per cent since the start of last year, while the UK has got 3 per cent smaller. Across continental Europe, net equity supply has been flat.
George Wells, Chairman, Principal & Co-Founder of Wells Group of New York By John Jannarone Many young companies have almost all the right ingredients for success. But without a capable Chief Financial Officer or Chief Operating Officer in place, there is a serious risk a business will experience a failure in corporate governance and even […]
Major US bank stocks had a rough day on Wednesday. Notably, recession fears gripped the overall market. Investors shouldn't rush to buy bank stocks.
Norway’s central bank has cast doubt on whether it will raise interest rates again this year as growing economic uncertainty around the world fuels a global shift towards looser monetary policy. It had previously been widely expected to lift rates in September and again after that but on Thursday Norges Bank shifted its language about the outlook for the future, striking a more pessimistic note that analysts said could mean that September’s rate hike is its last — or even that might not take place. Keeping the interest rate unchanged at 1.25 per cent, its governor Oystein Olsen said that “the global risk outlook entails greater uncertainty about policy rates going forward”.
Investing.com – Wall Street slumped on Wednesday after the yield curve on the 2-year and 10-year Treasury note briefly inverted for the first time since 2007, increasing fears of a recession.
Citigroup is breaking its late May/early June low. In this daily bar chart of C, below, we can see the rapid decline of this month. The On-Balance-Volume (OBV) line has been weakening since April telling us that sellers of C have been more aggressive.
There's an art to buying low during market corrections. It's fun to buy stocks while they're "on sale", but the excitement can turn into frustration if the stocks don't begin to rebound within a few weeks, asserts Crista Huff, editor of Cabot Undervalued Stocks Advisor.
Admiral’s profits were pushed £33m lower after the motor insurer was harder hit than rivals by changes to the way personal injury claims are calculated. The change will leave insurers paying out more than they were expecting and means Admiral has had to increase its reserves for cases that are already under way. Admiral, one of the UK’s biggest motor insurers, said on Wednesday that the change had pushed down its first-half profits by £33m, and that the overall impact could rise to £60m.
Investing.com - U.S. futures fell on Wednesday as data from China and Germany showed the continuing damage to the world economy from trade-related disputes.
Charlottesville, VA, based Investment company Swift Run Capital Management, LLC (Current Portfolio) buys Citigroup Inc, sells Dow Inc, Nuveen Floating Rate Income Fund during the 3-months ended 2019Q2, according to the most recent filings of the investment company, Swift Run Capital Management, LLC. Continue reading...
With the S&P; 500 near an all-time high, many think that investors are infatuated with U.S. equities; however, data shows that a massive ent sum of money has flowed out of domestic stock funds over the last 4-plus years, asserts Jason Clark, value investing expert and contributing editor to The Prudent Speculator.
"There's so much uncertainty around where we're going with trade, that it's virtually impossible for businesses to put in place plans for the future," Brian Levitt, Invesco US Senior Director, Investment Strategy, tells Yahoo Finance's The First Trade. He joins Yahoo Finance's Alexis Christoforous and Brian Sozzi, alongside Erin Gibbs, S&P Global Equity Chief Investment Officer, around Tuesday's around opening bell.