Even as earnings estimates rebound across emerging markets, one sector is doggedly going from bad to worse: information technology. The first five months of 2019 saw the average profit projection for developing-nation companies tumble about 7%, with the biggest drag being IT firms, whose estimates sank 29%. And when the tide turned and forecasts for emerging markets as a whole rose 1.7% in the past seven weeks, technology companies failed to catch up -- their estimates have fallen a further 2.3%.
MUMBAI/BENGALURU (Reuters) - Indian lender Yes Bank Ltd posted a 91% drop in quarterly profit on Wednesday, due to a nearly three-fold rise in provisions for loan losses, while asset quality deteriorated sharply. Net profit for the three months ended June 30 came in at 1.14 billion rupees ($16.57 million), compared with 12.60 billion rupees last year. The private-sector lender shocked markets with its first-ever loss in the preceding quarter, as it set aside higher provisions and logged fresh bad loans to the tune of 34.81 billion rupees, some of which were on account of its exposure to a struggling airline and infrastructure conglomerate IL&FS.
Adam Neumann, the co-founder and chief executive of the international real estate co-working startup, WeWork, has reportedly cashed out of more than $700 million from his company ahead of its initial public offering. The size and timing of the payouts, made through a mix of stock sales and loans secured by his equity in the company, is unusual considering that founders typically wait until after a company holds its public offering to liquidate their holdings. Despite the loans and sales of stock, first reported by The Wall Street Journal, Neumann remains the single largest shareholder in the company.
Ray Dalio, billionaire investor and co-chairman of Bridgewater Associates, called on investors in a research note to prepare portfolios for the coming transition out of this decade's central bank-led reflationary environment into a future met with unsustainably large liabilities and rising social and geopolitical tensions. The note, titled Paradigm Shifts, is a summation of ideas Dalio has formed throughout his career studying markets, as well as a targeted focus this past year to study economic and market moves in major countries over the last 500 years.
Netflix's post-earnings stock crash has one Wall Street veteran calling out a peer with a wildly different take. Netflix (NFLX) surprisingly lost 126,000 domestic paid subscribers in the quarter versus the 309,000 gain anticipated. International paid subscriber gains also came up short, by about two million compared to analyst forecasts.
Tuna Amobi, consumer cyclicals analyst at CFRA, discusses second-quarter results from Netflix Inc. as the streaming media company reported a decline in U.S. customers. He speaks with Blomberg's Vonnie Quinn on "Bloomberg Markets."
Boeing expects the 737 Max to return to service in Q4 and will book an after-tax charge of $4.9 billion in Q2 due to estimated disruptions from the plane's grounding. Boeing stock rallied late Thursday. The aerospace giant said the charge represents an "estimate of potential concessions and other considerations to customers." It will translate to $8.74 a share in Q2. Dow Jones stock Boeing is releasing financial results before the stock market opens next Wednesday.
Only 13% of Americans with at least $1 million investable assets feel wealthy, according to a new survey from Ameriprise Financial provided exclusively to USA TODAY. Six in 10 define themselves as upper middle class, while a quarter identify as middle class. The vast majority of the millionaires who don't feel rich have between $1 million and $5 million in investable assets, including cash in checking or savings accounts, stocks, bonds, mutual funds, and money in retirement plans.
A key gauge of China's debt has topped 300% of gross domestic product, according to the Institute of International Finance (IIF), as Beijing steps up support for the cooling economy while trying to contain financial risks. China's total corporate, household and government debt rose to 303% of GDP in the first quarter of 2019, from 297% in the same period a year earlier, the IIF said in a report this week which highlighted rising debt levels worldwide. The IIF is a private global financial industry association, based in Washington.
Rising odds of a 50-basis Fed rate cut helped spark the price of gold to a 6-year high of $1,448 on July 18. Gold stocks are usually stock market laggards when the outlook for the U.S. economy and the U.S. dollar is solid. Doubts about the outlook and especially a dovish Fed have fueled a gold price surge in 2019, sparking a burst of interest in gold investing.
SAO PAULO/RIO DE JANEIRO (Reuters) - Two Iranian vessels have been stranded for weeks at Brazilian ports, unable to head back to Iran due to lack of fuel, which state-run oil firm Petrobras refuses to sell them due to sanctions imposed by the United States. The vessels Bavand and Termeh came to Brazil a couple months ago carrying urea, a petrochemical product used as fertiliser. Food is not covered by U.S. sanctions, and Iran is one of the largest buyers of Brazil's agricultural commodities, importing more than 2.5 million tonnes of Brazilian corn so far this year — more than any other country.
Linan Liu, greater China rates and FX strategist at Deutsche Bank, discusses the possibility of currency market intervention by the U.S., the yuan and China's credit market. She speaks on “Bloomberg Markets: China Open.
Oil prices rose more than 1% on Friday after the U.S. Navy destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows, again raising tensions in the Middle East. The United States said on Thursday that a U.S. Navy ship had "destroyed" an Iranian drone in the Strait of Hormuz after the aircraft threatened the vessel, but Iran said it had no information about losing a drone. The move comes after Britain pledged to defend its shipping interests in the region, while U.S. Central Command chief General Kenneth McKenzie said the United States would work "aggressively" to enable free passage after recent attacks on oil tankers in the Gulf.
p An acceleration in the move by big companies and government agencies to the cloud contributed to unexpectedly strong results at Microsoft in the latest quarter, capping its recent rebound to become the world's most valuable company. p Satya Nadella, chief executive, pointed to “large, multiyear cloud agreements” as one of the main reasons for his company's unexpectedly strong revenue and earnings growth in the three months to the end of June, with sales almost $1bn ahead of market expectations.
The idea has always been that these sectors provide less in the way of capital gains, compared to more volatile high-flying sectors like technology, but in exchange for the more moderate capital gains, investors get stability and yield. Dividend yields have fallen under this scenario, and XLU yields just 3%, while XLP yields just 2.7%. Energy Transfer (NYSE:ET) has been steadily executing on the strategic front.
Intuitive Surgical crushed second-quarter earnings forecasts Thursday and delivered another period of $1 billion-plus in sales — but the robotic surgery stock dipped in after-hours action. Shares of Intuitive Surgical slipped 0.7%, near 533, after the company announced earnings. The robotic surgery stock ended the regular session on the stock market today with a 2.5% gain, at 536.63.
The House voted overwhelmingly to repeal a tax Wednesday intended to fund the Affordable Care Act, preserving tax breaks for employer-sponsored insurance plans favored by large corporations. In a reversal of the usual partisan roles, Democrats rather than Republicans led the charge to kill a key part of Obamacare. The bill to repeal the levy commonly known as the “Cadillac tax” passed 419-6 with bipartisan support.
The combination of strong consumer spending activity and BAC management's continued commitment to share repurchases has proved potent. The company, in no uncertain terms, has committed to an additional $37 billion of dividends and share repurchases. Consumer banking and wealth management continue to show a lot of strength, buoyed by improvements on the digital platform.
Nvidia stock is trying to get its groove back while some chip stocks, notably AMD, have powered higher. Investors wonder if Nvidia can lead the market again. For those looking for top large-cap stocks to buy now, here's a deep dive into NVDA stock.
These small and volatile stocks are the first to show signs that traders and investors are tightening their risk-reward ratios because they feel the stock market is overpriced and that a bear market could be near, and the last type of stock you want to own during a bear market are small-cap stocks. CUSTOM CHART OF THREE SECTORS TRANS (IYT) + INDUSTRIALS (XLI) + RUSSELL (IWM) / 3 The chart below shows the recent and current day price action of these three leading sectors. Notice the long multi-year rally into the high of 2018 followed by the sharp distribution selling that warns the big money players unloaded their positions in these leading and leveraged sectors.
CSX CEO James Foote has surely seen it all in a decorated 40-year career in the railroad industry. That is except for the apparently odd behavior of the Trump economy. The present economic backdrop is one of the most puzzling I have experienced in my career,” Foote told Wall Street analysts on a conference call Tuesday evening.
U.S. President Donald Trump said on Thursday his administration was looking closely at Amazon.com's bid on a $10 billion cloud contract with the Defence Department after getting complaints from other tech companies. Amazon.com Inc and Microsoft Corp were selected in April to continue competing for the Pentagon cloud computing services that is part of a broad modernization of Pentagon information technology systems. The selection left Oracle Corp and IBM Corp out of the competition for the contract for the Defence Department's Joint Enterprise Defence Infrastructure Cloud, or JEDI.
Netflix (NFLX) shares took a dive after the company released its second quarter earnings report. The streaming service reported that it added just 2.7 million paid subscribers worldwide during the period, missing analysts' expectations calling for 4.8 million subscribers. “Netflix has a history of beating big and missing big,” said BTIG Managing Director Richard Greenfield.
This is up 39% from the company's earnings per share of $1.19 from the same time last year. It also has the company beating out Wall Street's earnings per share estimate of $1.43 for the quarter, but that couldn't keep PGR stock from falling today. The Progressive earnings report for the second quarter of 2019 also includes net income of $979.40 million.
Exxon Mobil (NYSE:XOM) Has been an energy stalwart for decades and Exxon stock has paid off pretty well, but the company's continued success increasingly looks unlikely. Almost 40 years ago I was convinced to leave Houston by an economist who had modeled how the local economy might do with rising, stable, or falling oil prices. In all three scenarios, Houston went into recession.