Posts Tagged "Finance"

Stock prices fell sharply on Tuesday, and it’s not hard to see why.


4 min read

Opinions expressed by Entrepreneur contributors are their own.


Investor optimism sparked by a truce in the trade war between China and the U.S. proved short-lived.

A day after the market rallied on news of a 90-day delay in further tariff increases by the U.S. against China, President Trump reminded people on Twitter this morning that he was a “tariff man.”

Stock prices fell sharply with the Dow Industrials index falling 799 points and all three major indexes down more than three percent. The Entrepreneur Index™ declined 3.76 percent and only two of 60 stocks in the index posted gains on the day.

Trade worries weren’t the only thing rattling the markets. Bond yields fell dramatically, as investors anticipate a slowing economy. The yield on the 5-year Treasury bond fell more than five basis points to 2.78 percent and is now below the 2-year bond yield. Meanwhile, the 10-year Treasury yield fell a staggering eight points to 2.91 percent and is just 12 basis points above the 2-year yield. Such yield curve inversions — when long-term interest rates fall below short-term — usually portend an economic slowdown, if not recession.

Cyclical and financial stocks were particularly hard hit today. The Dow Jones U.S. Banks index was down nearly five percent, and financial services firms were weak across the board. Banks, which typically borrow short-term to lend long-term, are hurt by yield curve inversions.

Capital One Financial was down 6.12 percent and investment bank Jefferies Financial Group fell 7.01 percent. Asset manager BlackRock Inc. was down 5.99 percent while competitor Franklin Resources was down 2.89 percent.

Fedex Corp, considered a good barometer of the U.S. economy, fell 6.3 percent. Investors may also have been spooked by a research note from Morgan Stanley analyst Ravi Shanker, who warned about the potential impact of Amazon.com on the delivery industry. Amazon continues to add planes to its own personal delivery fleet and has an air cargo hub in Kentucky that may eventually handle up to 100 planes.

Business services provider Cintas Corp. and homebuilder D.R. Horton were down 5.18 and 4.5 percent respectively. Retail stocks were also rocked by fears about the economy. Bed Bath & Beyond was down 6.97 percent percent, bringing its drop for the year to 44 percent. Walmart (-2.97 percent) and Costco Wholesale Group (-2.5 percent) had smaller declines.

The clothing retailers also gave back their gains and more from yesterday. Gap Inc. was down 4.44 percent, while Ralph Lauren fell 4.42 percent and L Brands was off 3.9 percent. Under Armour Inc. was down 2.73 percent.

Wynn Resorts and Estee Lauder Companies, two stocks that rose sharply yesterday on the trade news, also gave back their gains today. Wynn was down 7.83 percent — the biggest decline on the Entrepreneur Index™ today, while Estee Lauder fell 5.61 percent.

Technology stocks were weak across the board. The volatile shares of graphics chipmaker NVIDIA Corp. fell 7.6 percent. Other big losses in the tech sector included Amazon.com(-5.87 percent), Netflix (-5.16 percent) and Alphabet Inc. (-4.96 percent). Akamai Technologies had the smallest loss of the thirteen tech stocks on the index, falling 2.18 percent.

Other notable declines on the index included medical device manufacturer Boston Scientific Corp.(-5.17 percent) and liquor producer Brown-Forman Corp. (-4.71).

Only two stocks on the index had gains today. Tesla was up 0.34 percent and O’Reilly Auto Parts rose 0.03 percent.

The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.




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At least, President Trump and the U.S. agreed to hold off for another three months before raising tariff rates.


3 min read

Opinions expressed by Entrepreneur contributors are their own.


The stock market cheered the 90-day truce in trade hostilities agreed to by the U.S. and China over the weekend.

It wasn’t a full-blown deal at the G20 economic summit between the two largest global economies, but the U.S. did agree to postpone tariff rate hikes for three months while negotiators try to hammer out an agreement.

Stock prices rose broadly across all market segments with the Dow and S&P 500 indexes up 1.13 percent and 1.09 percent respectively, while the technology heavy Nasdaq composite index rose 1.51 percent. The Entrepreneur Index™ was up 2.02 percent with only nine of 60 stocks falling on the day.

Stocks with significant exposure to China were among the biggest gainers on the index today. Wynn Resorts, for example, was up 9.5 percent, the biggest gain on the index. The trade war truce helped, but solid November gambling revenues in Macau drove the stock higher today. It appears that slowing growth in China and financial market volatility is not crimping Chinese highrollers’ penchant for gambling. Wynn operates three casinos in Macau.

Estee Lauder Companies Inc. was also up sharply, rising 7.0 percent. The high-end cosmetics maker crushed Wall Street estimates for third quarter earnings at the end of October, in large part because of a 24 percent jump Asia-Pacific sales.

Clothing-makers posted good gains on the day. Gap Inc. was up 3.26 percent, L Brands rose 3.78 percent and Ralph Lauren Corp. gained 3.18 percent. Under Armour Inc. was up a more modest 0.9 percent today, but it did set a 52 week high.

The price of oil rallied 4.3 percent today on the trade news. The market is also expecting OPEC members to agree to significant cuts in production at their meeting in Vienna on Thursday. Oil and gas producer Hess Corp., which is down nearly 25 percent since the beginning of October, was up 4.75 percent.

The technology sector posted strong gains today. Twitter led the pack, rising 7.03 percent and recovering the ground it lost last week. The stock was down sharply on Thursday for no apparent reason. It turns out a conservative backlash against the social media network may have driven the stock down briefly. Conservatives believe Twitter is not providing an open platform for conservative voices.

Amazon (4.86 percent) and NVIDIA Corp (4.04 percent) also had strong gains on the day.

Truck manufacturer PACCAR inc. had the biggest decline on the Entrepreneur Index™ today, falling 1.78 percent. Only two of the other eight stocks that fell today were down more than one percent. J.M. Smucker Company was down 1.2 percent, while Jefferies Financial Group was off 1.05 percent.

The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.


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A dinner meeting between President Trump and Chinese President Xi could cause a disruption in economic growth.


4 min read

Opinions expressed by Entrepreneur contributors are their own.


Thanks, China! U.S. stock prices rallied late in the day after Reuters reported that a Chinese trade official said that “consensus is steadily increasing” between U.S. and Chinese trade negotiators.

The Entrepreneur Index™ closed up 0.64 percent after trading within a narrow range for most of the day. The S&P 500 index was up 0.82 percent while the Dow and Nasdaq composite indexes were both up 0.79 percent.

Investors are eagerly awaiting the outcome of a dinner meeting tomorrow between President Trump and Chinese President Xi Jinping at the G20 economic summit in Buenos Aires. The ongoing tariff battles between the two countries are expected to hurt global economic growth. President Trump continues to send mixed signals on the potential for a deal, saying yesterday that the two countries were very close to an agreement, but that he wasn’t sure he wanted to sign it.

The bond market believes an economic slowdown is coming. The yield on the 10-year Treasury bond was down another three basis points to close at 2.995 percent, in part due to comments from Federal Reserve members earlier in the week that expressed concern with global growth and corporate debt levels. The 10-year bond yield hasn’t closed below three percent for more than two months.

With interest rates falling, high dividend-paying real estate investment trust (REIT) stocks posted solid gains on the Entrepreneur Index™. SL Green Realty Corp. (2.77 percent), Kimco Realty Corp. (2.64 percent) and Apartment Investment and Management Co. (2.04 percent) were all up on the day.

The technology sector was relatively quiet again today. Chipmaker NVIDIA Corp. had the biggest gain on the index, rising 3.86 percent. Investors have been worried about demand for the company’s high-end processing chips in part because of the crash of crypto-currency markets. NVIDIA’s chips are popular with crypto-currency miners. The stock lost half its value since early October, but has been trending up for the last week.

Fellow-chipmaker Analog Devices was up 2.68 percent and salesforce.com rose 2.18 percent. Netflix, which has been up sharply in the last three trading sessions was down 0.91 percent.

Tesla shares rose 2.75 percent after an electric vehicle blog site — Electrek — said the company had successfully ramped up production of its mass-market Model three sedan to 1000 cars/day. Most of the cars have been sold for more than the company’s $35,000 target price so far. Earlier this year, CEO Elon Musk said that selling the cars at that price before achieving higher production rates and lower costs could kill the company. Tesla shares are up 13 percent for the year.

Discount retailer Dollar Tree Inc. had one of the larger declines today, falling 1.88 percent after rising more than six percent yesterday. The biggest decline on the Entrepreneur Index™ was posted by O’Reilly Auto Parts, which fell 2.27 percent. Hess Corp. was also down 1.01 percent as the price of oil fell 1.48 percent today. Oil was down 22 percent in November, its worst month in more than ten years.

Other notable declines on the index included Chipotle Mexican Grill (-1.94 percent), retailer L Brands (-1.43 percent) and whiskey-maker B”>Brown-Forman Corp. (-1.2 percent).

The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.


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Amazon and Netflix stock prices just keep climbing.


3 min read

Opinions expressed by Entrepreneur contributors are their own.


Stock prices soared after encouraging words from Federal Reserve Chairman Jerome Powell today.

In comments at a luncheon in New York, the Fed Chairman said that the central bank’s benchmark Fed Funds rate — currently at a range of 2.0 percent to 2.25 percent — was now “just below neutral.” Neutral is considered an interest rate level that neither stimulates nor restricts economic growth and is presumably a target rate for the Fed at this point.

That’s a major shift from his comments at the beginning of October, when he said that rates were still “a long way from neutral.” Investors are hoping it means the Fed will either not raise rates as expected next month and/or reduce the number of rate hikes it planned to make next year.

Stock prices spiked shortly after Powell began his speech at noon, with strength across all segments of the market. The Entrepreneur Index™ closed the day up 3.17 percent, with only four of 60 stocks in the red. The Dow Jones Industrials index surged 617 points (2.5 percent), while the S&P 500 and Nasdaq composite indexes were up 2.3 percent and 2.95 percent respectively.

The technology sector had some of the largest gains of the day, with salesforce.com up 10.24 percent–the biggest jump on the Entrepreneur Index™. Adobe Systems Inc. also rose 7.3 percent. Amazon was up 6.09 percent and Netflix closed the day 6.01 percent higher. Facebook was the weakest of the so-called FANG stocks, rising 1.3 percent.

Retailers Costco Wholesale Corp. (3.29 percent) and Walmart (2.55 percent) and were both up sharply, while discount retailer Dollar Tree Inc. was up 1.83 percent.

Under Armour Inc. was up 5.55 percent — the biggest gain on the index outside the tech sector. The athletic apparel maker reported blow-out earnings at the end of last month and has been on a tear of late. The stock is up 62 percent so far this year. After big gains in the last two days, L Brands was up a more modest 1.78 percent today. Gap Inc. was up 2.53 percent.

Other prominent gains on the index today included NVIDIA Corp. (4.12 percent), Alphabet Inc. (4.0 percent), Boston Scientific Corp. (3.94 percent), Chipotle Mexican Grill (3.61 percent) and Verisign Inc. (3.35 percent).

While most of the market was up smartly, J.M. Smucker Company was clobbered after it reported disappointing financial results this morning. The stock was down 7.24 percent, the biggest decline by far on the Entrepreneur Index™ today. The food-maker missed badly on earnings estimates, was shy of revenue targets, and lowered guidance for its full-year outlook. Fellow food-maker Tyson Foods (-2.31 percent) was also down sharply.

The only other two stocks on the Entrepreneur Index™ that declined today were Ralph Lauren Corp. (-0.07 percent) and Wynn Resorts (-0.03 percent).

The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.


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3 min read

Opinions expressed by Entrepreneur contributors are their own.


L Brands is experiencing some early holiday cheer.

After rising nearly 7 percent on Cyber Monday — the biggest day of online shopping in history — L Brands, makers of Victoria’s Secret lingerie and operators of Bath & Body Works stores, was up another 3.78 percent today.

That was the largest gain on the Entrepreneur Index™, which closed up 0.17 percent.

The stock market appeared in a holding pattern today after strong Cyber Monday sales buoyed investor sentiment yesterday. With the uncertainty surrounding the health of the global economy, U.S.-China trade negotiations, and falling oil prices weighing on the market, investors appeared to be waiting for some clarity.

The G20 economic summit — where U.S.-China relations will be center stage — begins on Friday and an OPEC meeting, where potential cuts in oil production will be discussed, is scheduled for next week. Fed Chairman Jerome Powell will also speak tomorrow at the Economic Club of New York, undoubtedly fueling speculation on the odds of another interest rate hike in December.

The Dow and S&P 500 indexes were up 0.44 percent and 0.33 percent respectively, while the Nasdaq composite index was up 0.01 percent.

The technology sector was uncharacteristically quiet today, with only five of 13 tech stocks on the Entrepreneur Index™ rising or falling more than 1 percent. Netflix had the biggest gain in the sector, rising 2.01 percent, while Verisign Inc., which registers internet domain names, had the biggest loss at 1.91 percent.

Facebook continued to suffer slings and arrows from all directions. A former Facebook employee accused the company of having a “black people problem,” suggesting it lacked organizational diversity. Meanwhile, Facebook’s VP of policy was grilled today by representatives from nine countries in the U.K. parliament on fake news and disinformation issues. The representatives were angry that CEO Mark Zuckerberg did not attend the meeting. The stock was down 1.01 percent on the day.

While L Brands had a strong day, other clothing manufacturers did not. Luxury brand Ralph Lauren was down 3.85 percent and Under Armour Inc. fell 1.89 percent.

Retailer stocks were also mixed with Costco Wholesale Group rising 1.62 percent and discount retailer Dollar Tree Inc. falling 1.6 percent. Walmart was down 0.12 percent and Bed Bath & Beyond was down 4.4 percent — the biggest decline on the Entrepreneur Index™ today.

Tyson Foods slid 1.88 percent and is now down 28 percent for the year. Fellow food-maker J.M. Smucker Company was up 0.16 percent on the day.

Other notable gains on the Entrepreneur Index™ today included whiskey-maker Brown-Forman Corp. (2.06 percent), Cognizant Technology (1.67 percent), Chipotle Mexican Grill (1.59 percent) and Comcast (1.55 percent).

The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.


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