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ebb5f8adb4d420ae548263c431cf78d0 | https://www.cnbc.com/2018/05/14/tesla-model-s-hits-truck-in-utah.html | Tesla Model S hits truck in Utah | Tesla Model S hits truck in Utah
Getty Images
A Tesla Model S crashed at speed into a truck from the city's Unified Fire Authority in South Jordan, Utah, late on Friday after failing to slow for a red light, local police said on Monday.
The Tesla car was traveling at 60 miles per hour when it hit the mechanic truck, which was stopped for the light on the South Bangerter Highway in South Jordan, Utah at 6:38 pm MT, the police said.
The Tesla driver suffered a broken ankle and was taken to hospital while no injuries were reported to the truck driver, the police said in a statement.
VIDEO4:0704:07Ron Baron: We’re going to make 20 times our money on TeslaSquawk Box
Witnesses said the Tesla car did not brake prior to impact, the statement said, adding it was unknown if the autopilot feature in the Model S was engaged at the time.
Tesla did not immediately respond to emails and phone calls requesting comment.
The U.S. National Transportation Safety Board said last week it was investigating a Tesla accident in Fort Lauderdale, Florida, that killed two teenagers and injured another — the agency's fourth active probe into crashes of the company's electric vehicles.
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452189327e56d5cc6be764c0089c4b02 | https://www.cnbc.com/2018/05/14/tesla-model-s-was-on-autopilot-utah-driver-tells-police.html | Tesla Model S was on Autopilot, Utah driver tells police | Tesla Model S was on Autopilot, Utah driver tells police
A Tesla Model S at a charging station in Beijing, China.Meghan Reeder | CNBC
A Tesla Model S that crashed into a stopped fire truck at high speed was operating in Autopilot mode, the driver of the car told Utah police officials Monday.
Tesla says it continues to work with South Jordan police on the investigation, and has not yet released details of the incident based on the car's computer logs.
The driver of the vehicle, a 28-year-old woman from Lehi, Utah, slammed into the truck in South Jordan on Friday. The woman also told police she was looking at her phone prior to the collision, and estimated her speed at 60 mph, which is consistent with eyewitness accounts, according to South Jordan police officials.
VIDEO2:1902:19Will regulations get in the way of Tesla's driverless dreams?Closing Bell
The result was an accordioned front end for the electric car, but only a broken foot for the driver, according to a statement late Monday from South Jordan Sgt. Sam Winkler. The driver of the United Fire Authority mechanic truck was checked for whiplash and was not checked into the hospital.
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A Tesla spokesperson said the company's previous response to the crash still stood, which noted that Autopilot — a semi-autonomous system that works like a souped up cruise control — requires constant vigilance and is not meant to take over driving responsibilities while drivers focus on other chores.
Winkler said that South Jordan police was continuing to investigate the crash, and would be working with Tesla to gather vehicle information from the Model S's computers over the coming days.
Eyewitness accounts indicate the Model S did not slow down as it rammed into the back of the truck, which was stopped at a traffic light in the far right lane.
VIDEO3:3103:31Fmr. NHTSA admin. on self-driving car concernsSquawk on the Street
Autopilot has been in the crosshairs of federal crash investigators, dating back to a 2016 crash of Tesla Model S in Autopilot mode that killed its driver after the car failed to stop for a tractor trailer that cut across its path.
More recently, investigators with the National Transportation Safety Board were called into to review details of a March crash that saw a Tesla Model X slam into a highway divider in Mountain View, Calif. The driver died.
Tesla has said the driver ignored the car's warnings to take back control of the car, while his family is considering suing on the grounds that Tesla ignored the driver's previously raised concerns about Autopilot acting up on that same stretch of Silicon Valley highway.
NTSB and National Highway Traffic Safety Administration officials also are investigating a recent Tesla Model S crash in Florida in which two teens died and one was injured.
The car hit a concrete barrier at high speed in a residential neighborhood and burst into flames. Autopilot is not thought to be a factor, but investigators are looking into the ensuing battery fire.
Just prior to Utah police announcing that Autopilot had been in use according to the car's driver, Tesla CEO Elon Musk posted a series of tweets that played up the safety of his car.
@elonmusk tweet
@elonmusk tweet
"What's actually amazing about this accident is that a Model S hit a fire truck at 60mph and the driver only broke an ankle," Musk tweeted (although initially reported as an ankle injury, South Jordan officials said the injury was a broken foot). "An impact at that speed usually results in severe injury or death."
Musk also lamented media coverage that he said glossed over the 40,000 annual U.S. road deaths, and acknowledged that while no technology is perfect "a system that, on balance, saves lives & reduces injuries should be released."
VIDEO3:2103:21NHTSA to investigate Tesla Model X crashFast Money
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5abbceab3b970b5933bc140f0108805a | https://www.cnbc.com/2018/05/14/the-bond-market-could-be-signaling-a-recession.html | The bond market is doing something it hasn’t done since 2007 — and could be signaling a recession | The bond market is doing something it hasn’t done since 2007 — and could be signaling a recession
VIDEO1:1101:11Bond market may be headed toward a recessionTrading Nation
The yield curve is flatter than it has ever been since before the financial crisis.
If it gets any worse, there'll be lots of talk of a possible recession, says Craig Johnson, chief market technician at Piper Jaffray. He told CNBC's "Trading Nation" on Friday why this could be a warning sign for markets.
The spread between the 2-year and 10-year bond yields is hovering above minor support at 43 basis points. That's its lowest levels since 2007.Yield curve talk, and worries over a curve inversion, will crop up in market headlines more frequently as we approach the June Federal Open Market Committee meeting. The decision-making committee's next meeting is June 12-13.A 25-basis-point hike in June, a near certainty among market participants, would leave the spread between the 2-year and 10-year yield at less than 25 basis points.If the yield curve flattens, or even inverts, expect to see additional selling pressure on the financial sector. The banks, regional banks especially, will be laggards of the sector.
Bottom line: More Fed rate hikes will flatten the yield curve even more, putting strain on financials stocks.
Disclaimer
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1b37850a31b20221de66c065e6fcf776 | https://www.cnbc.com/2018/05/14/the-catalan-parliament-just-appointed-another-separatist-as-its-leader.html | The Catalan parliament just appointed another separatist as its leader | The Catalan parliament just appointed another separatist as its leader
The newly elected Catalan regional president Quim Torra waves as he leaves the Catalan parliament.Getty Images | Lluis Gene | AFP
The Catalan parliament has elected the separatist lawmaker Quim Torra as regional president, giving fresh impetus to attempts to split from Spain.
The vote Monday ends five months of political deadlock and makes Torra the seventh Catalan leader since Spain returned to a democracy in the 1970s.
Torra narrowly won the vote 66 to 65 with 4 abstentions, highlighting the parliament's divided nature.
Speaking at the Monday morning debate before the vote, Torra attempted to distance himself from the image of a radical separatist.
"With a republic, everyone will win rights, nobody will lose rights: these are for everyone, no matter which way they vote. The Catalan republic is equality, liberty and fraternity," said Torra according to the Spanish media outlet El Pais.
However, as recently as Saturday, Torra said in a speech that he wanted to build a country with "the maximum radicalism possible."
VIDEO5:4205:42Who wants independence in Europe?CNBC Explains
The election ends a period of direct rule from Madrid that was put in place last October, following a failed attempt at independence by the then Catalan government.
Torra was handpicked as a candidate by his mentor and the former leader of the Catalan parliament, Carles Puigdemont. It is thought Puigdemont will now hold a role as an unofficial advisor.
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b7f2bf5fe4825f9b8f0a4b0d8894bd79 | https://www.cnbc.com/2018/05/14/this-is-the-breakout-move-that-will-take-apple-to-1-trillion.html | This is the breakout move that will take Apple to $1 trillion | This is the breakout move that will take Apple to $1 trillion
VIDEO3:0903:09Apple is doing something it hasn’t done since 2012Trading Nation
Apple, already the world's largest company by market cap, looks likely to become even bigger. Its recent gains put it on track to hit a never-before-seen target, one technician says.
"This is the breakout move that is going to take this stock to be the first $1 trillion market-cap company, in my opinion," Craig Johnson, chief market technician at Piper Jaffray, told CNBC's "Trading Nation" on Friday. "We only need to close above $203, $204 to get that $1 trillion market cap."
At $189 a share, Apple currently has a market value of nearly $927 billion, marking it as the largest publicly traded company in the world. Apple shares exploded earlier in the month after topping quarterly earnings and sales estimates. Its stock is now on track for a monthly gain of 14 percent, its best since July 2013.
Recent gains have pushed major tech names into overbought territory. That might not matter for Apple as it develops a different role for itself in investor portfolios, according to Johnson.
"As you look at other names like Amazon, Facebook, Netflix that have gotten very extended-looking charts, Apple still remains almost a safe haven play inside of tech," said Johnson.
While markets have $1 trillion tunnel vision, Michael Binger, senior portfolio manager at Gradient Investments, sees a future with even higher highs for Apple based on its loyal customer base.
"Wall Street is going to sit there and they're going to try and figure out iPhone units and iPhone prices and they're going to go back and forth on this and Apple's just going to continue to execute and do just fine," said Binger on Friday's "Trading Nation. "I don't think now that they have the iPhone X that anyone's going to switch."
Apple shares were essentially flat Monday.
Disclaimer
Disclosure: Gradient Investments has a position in Apple.
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6693dd13592397095483ca1f446ff4c4 | https://www.cnbc.com/2018/05/14/united-airlines-has-change-of-heart-about-beloved-tomato-juice.html | United Airlines has change of heart about beloved tomato juice | United Airlines has change of heart about beloved tomato juice
A United Airlines airplane takes off at Newark Liberty Airport.Gary Hershorn | Getty Images
United Airlines is bringing back tomato juice.
Late Thursday, United said it would initiate plans to restock airplane galleys with a beverage apparently more beloved by many of the Chicago-based carrier's loyal customers than had been anticipated.
The about-face comes in the context of United recently revealing it was in the process of streamlining onboard food and beverage offerings. Those plans call for less elaborate meal options in premium cabins on flights of less than four hours as well as a variety of changes in the range of liquor and spirits offered on flights.
But sources within the ranks of United frontline flight attendants told the Chicago Business Journal none of the planned changes hit harder from their vantage point than did the news the airline was dropping tomato juice from the beverage list and substituting instead an additional can of Bloody Mary mix on beverage trolleys.
As the Chicago Business Journal noted in an article on Monday, many within the ranks of United flight attendants were already "in full apology mode" as tomato juice had gone missing on United flights.
By late Thursday, United spokespeople were busy spreading the news that tomato juice is coming back. "We do listen to customer feedback and make adjustments accordingly," noted a United spokesman, who indicated tomato juice should be back on board all United flights by July.
United flight attendants, needless to say, responded quite favorably to United's reversal of course. Noted one United flight attendant: "I am amazed by how quickly the Titanic changed course. My Thursday is much happier!"
The flight attendant also characterized United's change of heart as "change for good."
United Airlines is a unit of United Continental Holdings.
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28c481d6e1a6b4a06b552cdf4059ba69 | https://www.cnbc.com/2018/05/14/us-map-heres-where-you-can-bet-on-sports.html | Here's where and when you'll be able to gamble on sports legally | Here's where and when you'll be able to gamble on sports legally
State legislators across the nation are racing to authorize sports gambling after the U.S. Supreme Court on Monday ruled states can legalize the practice.
But where can you bet on sports now?
Betting on sports remains exclusive to Nevada, for the moment. With New Jersey at the center of the Supreme Court's ruling, gambling hubs such as Atlantic City and Monmouth Park racetrack are expected to be operational within the next few weeks.
While awaiting Monday's ruling, seven states — Connecticut, Delaware, Pennsylvania, Iowa, New York, Mississippi and West Virginia — had laws prepared to make sports betting legal and may be able to be ready before the NFL's season begins in September.
Thirteen other states have plans or proposals to consider legalizing sports betting: California, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Minnesota, Michigan, Missouri, Oklahoma, Rhode Island and South Carolina.
VIDEO3:4503:45Mark Cuban on sports betting ruling: Owners will see their team's value doubleSquawk Alley
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85016c6eb444670781ff3cfba68f98de | https://www.cnbc.com/2018/05/14/wanda-bryant-hope.html | Wanda Bryant Hope | Wanda Bryant Hope
Wanda Bryant Hope is an accomplished business executive with significant experience in general management, marketing, sales, commercial operations, and human resources. Hope is currently the Chief Diversity & Inclusion Officer for Johnson & Johnson worldwide.
In this role Hope is responsible for globally advancing J&J's diversity and inclusion (D&I) outcomes, strengthening D&I capabilities, improving reputation, and driving innovation and growth for future success. Hope has held a variety of leadership positions across Johnson & Johnson including Vice President, Sales & Marketing; Vice President, Commercial Analytics, Development & Operations; and Vice President, Global Performance & Development. Hope has been recognized for her ability to exceed business results, deliver innovative solutions to complex challenges, lead global change, develop people for optimal results and drive diversity & inclusion global outcomes.
Hope has received several awards including the Penn State Smeal Diversity Award, Healthcare Businesswomen's Association's Rising Star Award, Auburn Lives of Commitment Award, YWCA Tribute to Women in Industry Award, and the National Sales Network Community Service Award. Hope is committed to giving back to her community and serves on the Penn State Smeal College of Business Board of Visitors, the State Theater New Jersey Board of Trustees, and the Board of the National Sales Network.
Hope received her Bachelor of Science degree in Marketing from The Pennsylvania State University. Hope and her husband Bobby are the proud parents of Tyler, their 12- year-old son.
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108dbd17c582ac81732a7b80ce9d6b49 | https://www.cnbc.com/2018/05/15/asap-ferg-first-male-rapper-act-as-spokesman-for-tiffany-co.html | ASAP Ferg feels 'like a walking MoMA installation' | ASAP Ferg feels 'like a walking MoMA installation'
A$AP Ferg attends the Tiffany & Co. Paper Flowers event and Believe In Dreams campaign launch on May 3, 2018 in New York City.Getty Images
When ASAP Ferg was still a teenager in the Hamilton Heights neighborhood of Harlem, he started making crystal-studded pendants. He would sketch designs of characters like Bart Simpson and Mega Man, then hand the drawings over to Earl Harley (also known as "Harley, the buckle man"). Mr. Harley would create the bases for Ferg, who would then add Swarovski crystals and sell the pendants. They cost him about $200 to make; he sold them for about $700 a piece.
A decade later, Ferg, born Darold Ferguson Jr., is hawking pricier gems. This month, he became the first male rapper to appear as a spokesman for Tiffany & Co., the luxury jeweler. Ferg, 29, is not yet a megastar nor the most famous artist in the ASAP crew (that would be Rocky). But in collaborating with him, Tiffany has aligned itself with a princeling of Harlem fashion who aims to honor the legacy of his father, the designer Darold Ferguson Sr., by out-accomplishing him.
During a recent interview at The Blue Box Cafe at the Tiffany flagship store on Fifth Avenue, Ferg was frank about the mutual interest driving the partnership.
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"I feel like we open up doors for each other," he said of Tiffany. "I show them my world, they show me their world."
In working with him, the jewelry brand follows other luxury brands that have sought to reupholster their stuffy brand images by collaborating with luminaries of the hip-hop world.
The conglomerate LVMH Moët Hennessy Louis Vuitton recruited Jay-Z as a brand ambassador for its Hublot watches in 2011, and in the years since, it has been rewarded with hundreds of bars, from his songs and others', testifying to the status of its brands. Virgil Abloh, Kanye West's longtime creative director, was tapped in March as the artistic director of men's wear at Louis Vuitton. And in January, Gucci opened a studio with the Harlem fashion legend Dapper Dan, who worked with Ferg's father and is close enough with the rapper to refer to him as his nephew.
Before Mr. Ferguson Sr. died of kidney failure in 2005, days before Ferg's 17th birthday, he designed T-shirts for stars like Teddy Riley and Heavy D and logos, like the one he created for Bad Boy Records. Also in 2005, Ferg started his own line, Devoni Clothing.
"I always ask my grandmother, when did my father have his first car, when did my father have his first apartment," he said. "That was a way of measuring myself."
Eventually, Rocky, who had known Ferg for years, helped convince him to start making music in addition to designing clothing. A couple of studio albums and mixtapes into his career, Ferg now feels as if he's beginning to reach a new level of fame.
Ferg's love of jewelry is obvious in his music. The first verse of his highest-charting song to date, a remix of his 2018 single "Plain Jane," opens with him decked out in a chain he had made in honor of his friend ASAP Yams, the mastermind behind the ASAP crew, who died in 2015. In a song he created with the actress Elle Fanning, "Moon River," he raps about a Tiffany grill with all gold filling. If such a piece were real, it would be the first grill manufactured by the company. ("I'm a strong believer in talking things into existence and I've gotten everything I wanted so far," Ferg said.)
These days, he cares less about flash. He said he believes in the artistic value of the jewelry he's promoting — referring to himself as a "a walking MoMA installation" — but also understands what it could mean for young people to see him wearing gold from Tiffany & Co.
"I couldn't afford anything in here so I never walked in the store," he said, gesturing at the room. "Kids, I can imagine them feeling the same way, they didn't have anything to connect to."
He imagined what he might say to someone from Hamilton Heights: "I came from where you came from. You could attain this as well."
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5bebc236794ba152876f9e6866fb4da6 | https://www.cnbc.com/2018/05/15/aws-considers-fpgas-for-elemental-video-processing-tool.html | Amazon is hiring semiconductor engineers to make its cloud better at streaming video | Amazon is hiring semiconductor engineers to make its cloud better at streaming video
Amazon Web Services CEO Andy Jassy.CNBC
Amazon Web Services is loading up on engineers at a semiconductor unit in Portland, Oregon, where the cloud business is focused on improving video processing speeds.
Chips are becoming more important to AWS as the company aims to control more of the hardware in its giant data centers and strengthen itself against growing competition from Microsoft and Google.
Elemental, which AWS acquired for almost $300 million in 2015, is hiring employees at its Portland headquarters to work on field-programmable gate arrays, or FPGAs, which can be tuned for different applications after they've been plugged into servers.
In recent months, Amazon has issued three job openings for FPGA engineers, noting that experience with FPGAs from the industry's two big providers — Xilinx and Altera (now part of Intel) — is desirable. That follows the hiring late last year of Trevor Hendricks, a design engineer from HP, and John Hubbard, a longtime FPGA designer who previously worked at Portland-based Tektronix.
In an interview last week with CNBC's Jon Fortt, AWS CEO Andy Jassy referenced the significance of the company's 2015 acquisition of Israeli chipmaker Annapurna Labs in discussing Amazon's expansion into semiconductors.
We "bought a chip company in Israel a few years ago, so we've been designing our own chips for a while," Jassy said. "You can expect us to continue to do so."
VIDEO16:5416:54AWS CEO: We're customer-focused, not competitor-focusedSquawk Alley
Video processing is a common use of FPGAs and is listed as an application on AWS's web page advertising the technology. AWS Elemental services using FPGAs could speed up processing and cut down on complexity, but potentially at a higher cost than existing media services.
Disney, Turner and Comcast (owner of NBC, the parent of CNBC) are among the media companies that have recently chosen AWS as their "preferred" public cloud provider.
Amazon has been expanding its Elemental footprint in Portland, but the company hasn't publicized Elemental's chip-level work. An AWS spokesperson declined to comment for this story.
In 2016, the year after the acquisitions of Elemental and Annapurna, AWS announced that it would provide FPGAs for developers to use however they wanted. CME Group and National Instruments are among the companies that have shown interest in trying AWS FPGAs made by Xilinx. AWS is "a main customer" of Xilinx's data center business, analysts at Nomura Instinet wrote in an October note.
Microsoft recently started offering customers a cloud service for machine learning that uses FPGAs. Separately, Microsoft's Azure cloud offers live streaming and encoding services. Google hasn't announced any FPGA services, or live video processing tools.
— CNBC's Anita Balakrishnan contributed to this story.
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70c7ae5bdd67e71259415868800334e1 | https://www.cnbc.com/2018/05/15/cnbc-stages-of-life-sweepstakes.html | CNBC STAGES OF LIFE SWEEPSTAKES | CNBC STAGES OF LIFE SWEEPSTAKES
Official Rules
May 17, 2018 - June 15, 2018
PRELIMINARY INFORMATION: No purchase necessary. A purchase will not improve your chances of winning. Void where prohibited. CNBC Stages of Life Sweepstakes ("Sweepstakes") will begin on May 17, 2018 at 5:00 P.M. ET and end on June 15, 2018 at 5:00 P.M. ET ("Sweepstakes Period"). All times in the Sweepstakes refer to Eastern Time ("ET"). Odds of winning depend upon the number of eligible Entries (as defined below) received. Sweepstakes is subject to all applicable federal, state and local laws.
ELIGIBILITY: Open only to permanent, legal United States residents residing in one (1) of the fifty (50) United States or the District of Columbia (excluding Puerto Rico, Guam, the Virgin Islands and other United States territories), who are eighteen (18) years of age or older and of the age of majority in their state of residence as of the start of the Sweepstakes Period. Officers, directors, and employees of Sweepstakes Entities (as defined below), members of these persons' immediate families (spouses and/or parents, children, and siblings, and each of their respective spouses, regardless of where they reside), and/or persons living in the same households as these persons (whether or not related thereto) are not eligible to enter or win the Sweepstakes. Sweepstakes Entities, as referenced herein, shall include CNBC LLC, 1 CNBC Plaza, 900 Sylvan Avenue, Englewood Cliffs, NJ 07632, NBCUniversal Media, LLC (collectively, "Sponsors"), and each of their respective parent, subsidiary, and affiliate companies, and administrative, advertising, and promotion agencies, and any other entity involved in the development, administration, promotion, or implementation of the Sweepstakes..
HOW TO ENTER: There are two (2) methods to enter the Sweepstakes.
Web Entry: To enter the Sweepstakes online, during the Sweepstakes Period, click on the link to the survey (the "Survey") on the CNBC homepage at https://www.cnbc.com/ (the "Website") or in the email from Sponsors sent to Website subscribers on or about May 17, 2018, and follow the provided instructions to complete and thereafter submit the Survey, which includes your email address and the completed Survey (the "Web Entry"). All Entries become the property of Sponsors and will not be acknowledged. If you choose to submit your Web Entry via your web-enabled mobile device, data rates may apply. See your wireless service provider for details on rates and capabilities.
Mail-in Entry: To enter the Sweepstakes by mail, during the Sweepstakes Period legibly hand-print your first and last name, complete home address (including zip code), daytime telephone number (including area code), and email address on a postcard or piece of paper no larger than 6" x 8" ("Postcard") and mail the Postcard in a business size #10 envelope with first-class postage affixed to: CNBC Stages of Life Sweepstakes, Attn: Jon Hayes, CNBC LLC, 1 CNBC Plaza, 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 (the "Mail-in Entry"). All Mail-in Entries must be hand-printed. All Mail-in Entries must be postmarked by the end date of the Sweepstakes and received no more than seven (7) days after the end date of the Sweepstakes. The postmark date on Mail-in Entries will be considered the date of entry.
Web Entry and Mail-in Entry may collectively be referred to herein as "Entry" or "Entries."
You may enter one (1) time regardless of method of entry during the Sweepstakes Period. Multiple Entries received from any person beyond this limit will void all such additional Entries. Entries must be received before June 15, 2018 at 5:00 P.M. ET to be eligible for the Sweepstakes. Sponsors' computer shall be the official timekeeper for all matters related to this Sweepstakes. Entries received from any person beyond this limit will void all such additional Entries. Entries generated by a script, macro, other automated means, or by any means that subverts the entry process will be disqualified. Entries that are incomplete, garbled, corrupted, or unintelligible for any reason, including but not limited to illegible handwriting, are void and will not be accepted. In case of a dispute over the identity of an entrant, the authorized account holder of the email address used to enter will be deemed to be the entrant. "Authorized account holder" is defined as the person who is assigned to an email address by an Internet access provider, online service provider or other organization that is responsible for assigning email addresses for the domain associated with the submitted email address. Entry constitutes permission (except where prohibited by law) to use entrant's name, city, state, likeness, image, and/or voice for purposes of advertising, promotion, and publicity in any and all media now or hereafter known, throughout the world in perpetuity, without additional compensation, notification, permission, or approval.
All Web Entries and Mail-In Entries will be collectively referred to as Entry or Entries.
All Entries will not be acknowledged.
You may enter one (1) time during the Sweepstakes Period regardless of entry method. Multiple Entries received from any person beyond this limit will void all such additional Entries. Entries must be received before June 15, 2018 at 5:00 P.M. ET to be eligible for the Sweepstakes. Sponsors' computer shall be the official timekeeper for all matters related to this Sweepstakes. Entries received from any person beyond this limit will void all such additional Entries. Entries generated by a script, macro, other automated means, or by any means that subverts the entry process will be disqualified. Entries that are incomplete, garbled, corrupted, or unintelligible for any reason, including but not limited to illegible handwriting, are void and will not be accepted. Entry constitutes permission (except where prohibited by law) to use entrant's name, city, state, likeness, image, and/or voice for purposes of advertising, promotion, and publicity in any and all media now or hereafter known, throughout the world in perpetuity, without additional compensation, notification, permission, or approval.
WINNER SELECTION AND NOTIFICATION: On or about June 18, 2018, ten (10) potential winners ("Winners", each a "Winner") will be selected in a random drawing by representatives of Sponsors from all eligible Entries received during the Sweepstakes Period. Sponsors will make two (2) attempts to notify potential Winners via the e-mail address submitted in the Entry. Sponsors may share potential Winner's name and contact information with Sweepstakes Entities and/or any prize provider, as applicable, if necessary. Potential Winner may be required to execute and return an affidavit of eligibility, release of liability, and, except where prohibited, publicity release (collectively, "Sweepstakes Documents") within ten (10) days of such notification. Noncompliance within this time period will result in disqualification, and, at Sponsors' sole discretion an alternate potential Winner may be selected from the remaining eligible Entries. If a potential Winner cannot be reached, is found to be ineligible, cannot or does not comply with these Official Rules, or if prize or prize notification is returned as undeliverable, such potential Winner will be disqualified and time permitting, at Sponsors' sole discretion, an alternate potential Winner may be selected from the remaining eligible Entries.
PRIZE: There will be ten (10) prizes awarded ("Prizes") to Winners, one (1) Prize to each Winner. Each Prize will consist of one (1) one hundred dollar ($100) Amazon gift card.
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3f4d7726c0457ff8d3b740f9508eaf34 | https://www.cnbc.com/2018/05/15/cramer-disneys-chart-just-flashed-the-scariest-pattern-in-the-book.html | VIDEO1:1201:12Disney's chart flashed the scariest pattern, but the stock could still go higherMad Money with Jim Cramer
Even with Disney's strong second-quarter earnings report, boosted by theme park success and multiple blockbusters, CNBC's Jim Cramer has noticed that investors still overlook its stock.
"No one seems to care that Disney's movies keep breaking records," the "Mad Money" host said about its Avengers and Black Panther films. "Throw in the fact that the company's been a voracious buyer of its own stock, and it's downright puzzling, frankly, that this market only seems to focus on one thing: subscriber losses at ESPN."
So Cramer called on technician Tim Collins, his colleague at RealMoney.com, to help him understand how Disney's technical indicators were factoring into its share price.
And "as Collins sees it, there are few animals more unloved on Wall Street than Mickey Mouse," Cramer said Tuesday.
Collins began by looking at Disney's weekly chart. Right away, he saw that the chart was showing one of the scariest formations in the book: a head-and-shoulders pattern.
This pattern, which looks like a higher peak in between two lower peaks, tends to freak technicians out because it's so reliably bearish, Cramer said.
"According to Collins, the neckline of this pattern sits at $99 and extends all of the way back to last September," he explained. "The idea behind this thing is that if Disney breaks down below $99, it could potentially have another dozen points of downside before it finds its footing."
But for Collins, the $99 level represented a clear signal for investors: if Disney's stock dips below it, then it's time to sell the stock.
"In fact, he thinks you should actually wait until it pulls back below $98, just in case it overshoots to the downside before bouncing," Cramer said. "Basically, this head-and-shoulders pattern means that if you buy Disney, he thinks your risk is well-defined. And given that the stock is currently just under $103, your potential losses could be contained if you take Collins' advice."
Better yet, Collins argued that Disney's stock is close to breaking out of its head-and-shoulders pattern. If the stock can rally $1 per share from its current levels, Collins figured Disney's short-sellers would have to buy back their shares, ending the bearish move and boosting the stock.
The technician also pointed to Disney's full stochastic oscillator, which detects whether a stock is overbought or oversold, at the bottom of the chart.
A few weeks ago, the stochastic oscillator made a bullish crossover — when the black line goes above the red — signaling that shares of Disney could be due for a bounce, Cramer said.
"When the stochastics did this same thing last July, ... the stock caught a small pop. When they did it again in October, well, then it got a huge move higher," he recalled. "We're talking about rallies of 5 percent and 10 percent, respectively."
"Put it all together and Collins' near-term target for Disney is $108, with a probable retest of the stock's $112 high before the end of the year, possibly even before autumn," Cramer said.
Disney's daily chart supported Collins' analysis. The stock broke through its $102.75 ceiling of resistance in Tuesday's final hours of trading, and Collins said that level was critical for the bulls.
"As Collins sees it, Disney has very well-defined risk-reward: if the stock goes below $98, the bulls lose and he wants to be a seller because he thinks that could signal a much bigger breakdown," Cramer said. "But above $103, just 8 cents [up] from here, and he expects Disney to give you a big breakout to the upside."
All in all, Collins' view is that "Disney, the happiest place on Earth, is ready to make the bulls some of the happiest traders in the market," the "Mad Money" host said. "As for me, I'm a huge fan of Disney, and while I like it just fine here, personally, I've got to tell you something: if it does get hit because of any of this technical stuff, call me a buyer."
VIDEO9:4309:43Cramer: Disney's chart just flashed the scariest pattern in the book—but the stock could still go higherMad Money with Jim Cramer
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - VineQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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e1103a85578111df80a3cf8c41f31ce7 | https://www.cnbc.com/2018/05/15/cramer-dont-bail-on-home-depot-just-because-of-sluggish-spring-sales.html | Cramer: Don't bail on Home Depot just because of sluggish spring sales | Cramer: Don't bail on Home Depot just because of sluggish spring sales
CNBC's Jim Cramer urged investors on Tuesday to reconsider selling their Home Depot stock in response to the company's disappointing quarterly sales.
Home Depot shares were about 2 percent lower Tuesday after the retailer reported quarterly revenue that missed Wall Street's expectations, dragged down by what the company called a "slow start to the spring selling season."
The "Mad Money" host suspected that other top home improvement retailers may have similar numbers when they report quarterly earnings.
"By the time next week when Lowe's reports, we're all going to say to ourselves, 'Shoot, that Home Depot was such an opportunity,'" Cramer said on "Squawk on the Street." Home Depot just had the "misfortune" of reporting its quarterly earnings first, Cramer added.
Home Depot's rival Lowe's will report its first-quarter earnings numbers on May 23. Lowe's stock was slightly lower on Tuesday.
Despite the revenue miss, Home Depot did earn $2.08 per share for the first quarter, 3 cents above what analysts polled by Thomson Reuters were expecting.
Cramer, who has said he preferred Home Depot over Lowe's because of what he called generally better earnings results, same-store sales and growth, said investors should believe Home Depot when it says the weather was bad.
"I think this company deserves the benefit of the doubt when they say May is a resumption," Cramer said. "Everyone likes to go to Home Depot for the planting season. And the weather wasn't there.""There's a stickiness to Home Depot. People come back," he added. "I just don't want people to get hurt" by bailing on the stock.
Disclaimer
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cc4ee8e849b62a50fc9c6145dc4418c6 | https://www.cnbc.com/2018/05/15/cramer-fang-isnt-dead-just-giving-the-market-a-breather.html | VIDEO1:5201:52FANG just giving the market a breatherMad Money with Jim Cramer
While CNBC's Jim Cramer is confident about the future of FANG, his acronym for the stocks of Facebook, Amazon, Netflix and Google, now Alphabet, he knew concerns would arise after Tuesday's market pain.
All four major indices declined after the closely watched 10-year Treasury yield rose to its highest level since 2011 and home improvement retailer Home Depot missed its earnings estimates.
"Here's how I see today's pullback: this entire market is getting a well-deserved breather, led by FANG, after a gigantic rally," the "Mad Money" host said.
But Cramer pushed back on claims that FANG was outright dead. The tech stocks have simply "caught a cold" amid otherwise strengthening businesses, he argued.
He said that Facebook, for one, has all but moved past its data-mining scandal involving research firm Cambridge Analytica, which said it was shutting down in early May.
The company's appointment of respected Republican former Senator Jon Kyl to review its practices in light of the scandal "clos[ed] the door on one of the company's biggest vulnerabilities," Cramer said.
He pointed out that Amazon is bolstering its advertising business and other high-margin segments, boosting growth on top of its blowout first-quarter earnings report.
Netflix is also upping its prospects, Cramer said, referencing a recent survey by Wall Street firm Piper Jaffray that showed a majority of 1,100 domestic customers would pay more for Netflix's content if the streaming giant raised prices.
"It gets better: Piper did an identical survey two years ago and back then Netflix didn't have that much stickiness," Cramer noted. "You have to conclude that the company's benefiting enormously from its amazing original content."
With Alphabet, the "Mad Money" host centered on Waymo, the Google parent's self-driving car project that UBS said could generate $114 billion in revenues by 2030.
"That's much higher than others were expecting," Cramer said. "I think the upside from Waymo is simply not baked into Alphabet's numbers, which means it could be a real needle-mover."
So while many market-watchers tend to see upticks in the 10-year Treasury yield as a sign that stocks should head lower, Cramer argued that that trend had nothing to do with FANG.
"Many of the sell-offs in the last five years start like this," he explained. "The next day we tend to get a further down-leg that encompasses other growth stocks and also brings down the health cares, which drop when people are concerned about inflation, a natural inference from higher interest rates."
"Finally, on day three, we see the industrials and the banks crack, but by then FANG will have resurrected itself after some downgrades and some nasty ... premature obituaries," he continued.
Still, he acknowledged how scary the FANG stocks can seem when they decline.
"Those who can't take the pain will eventually just give up — that's when you have to pounce. I urge you to recognize the ebbs and flows of these high-flying stocks," he said. "Of course, if you can't take the pain yourself and you have good gains, feel free to ring the register."
"But here's the bottom line: I need you to steel yourself [and] stay strapped to the mast as the sirens begin to blare that FANG is dead," the "Mad Money" host concluded. "Next time your hear that FANG is dead, here's the correct response: 'Long live FANG!'"
VIDEO12:2412:24Cramer: FANG isn't dead, just giving the market a breatherMad Money with Jim Cramer
Disclosure: Cramer's charitable trust owns shares of Facebook, Amazon and Alphabet.
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - VineQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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6802d3d0e425198a2b123e776e9c3e6e | https://www.cnbc.com/2018/05/15/cramer-investors-must-listen-to-home-depots-conference-call.html | VIDEO0:5200:52Listen to HD's conference call after missMad Money with Jim Cramer
CNBC's Jim Cramer was dumbfounded when he saw the market's immediate response to Home Depot's earnings miss, which the company said was driven by unfavorable weather.
"Within seconds, ... we saw a flurry of articles about how there's a slowdown in housing and even the great orange big-box chain couldn't buck the trend," the "Mad Money" host said Tuesday.
Earlier, on CNBC's "Squawk on the Street," Cramer told investors to wait and hear what Home Depot's management said before drawing conclusions about the home improvement giant.
Sure enough, when the post-earnings conference call began, Home Depot's stock began to stabilize "as if the sellers said, wait a second, maybe we're overreacting," he said.
Then, when Home Depot CFO Carol Tome took the floor and began to explain the weakness, Cramer saw the stock begin to bounce.
"Tome gave us the kicker when she pointed out that, 'While spring was a reluctant bride, she has arrived and our stores have the inventory necessary to meet demand, which is a good thing, as month-to-date for the company our May comparable-store sales are double-digit positive,'" he said, quoting the CFO.
"I could see the sellers' jaws drop," Cramer quipped, noting that after Tome said her piece, the stock jumped further, all but erasing its earlier decline.
All things considered, the "Mad Money" host saw Home Depot's Tuesday roller-coaster ride as a lesson in caution. It's "crazy" to only look at the headline numbers and view them as the be-all, end-all for the housing market, he said.
"How could any journalists reach this conclusion without even listening to the conference call? It's media malpractice," Cramer said.
"Now, obviously, the market was terrible today so Home Depot's stock still ended up getting slammed," he continued. "Still, when you actually listen to the conference call, which I tell you you must, it's clear that the only readthroughs from this quarter are positive, not negative. And, for the record, when a company as outstanding as Home Depot blames its problems on the weather, it may make sense, for once, to give them the darn benefit of the doubt."
VIDEO4:3604:36Cramer calls on investors to listen to Home Depot's conference call after earnings missMad Money with Jim Cramer
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - VineQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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f761df1fcbc37b2f25d9f4b3d7f6ec36 | https://www.cnbc.com/2018/05/15/cramer-remix-the-one-stock-that-is-being-unjustly-overlooked.html | VIDEO1:0401:04Cramer Remix: The one stock that is being unjustly overlookedMad Money with Jim Cramer
Even with Disney's strong second-quarter earnings report, boosted by theme park success and multiple blockbusters, CNBC's Jim Cramer has noticed that investors still overlook its stock.
"No one seems to care that Disney's movies keep breaking records," the "Mad Money" host said about its Avengers and Black Panther films. "Throw in the fact that the company's been a voracious buyer of its own stock, and it's downright puzzling, frankly, that this market only seems to focus on one thing: subscriber losses at ESPN."
So Cramer called on technician Tim Collins, his colleague at RealMoney.com, to help him understand how Disney's technical indicators were factoring into its share price.
And "as Collins sees it, there are few animals more unloved on Wall Street than Mickey Mouse," Cramer said Tuesday. "So, on a not-so-hot day for the averages, I want to address one of the most unjustly overlooked stocks in the market."
"The darned thing still gets no respect and it feels kind of stuck here," he added before turning to Disney's weekly chart.
The FANG stocks: Facebook, Amazon, Netflix and GoogleAdam Jeffery | CNBC
While Cramer is confident about the future of FANG, his acronym for the stocks of Facebook, Amazon, Netflix and Google, now Alphabet, he knew concerns would arise after Tuesday's market pain.
All four major indices declined after the closely watched 10-year Treasury yield rose to its highest level since 2011 and home improvement retailer Home Depot missed its earnings estimates.
"Here's how I see today's pullback: this entire market is getting a well-deserved breather, led by FANG, after a gigantic rally," the "Mad Money" host said.
But Cramer pushed back on claims that FANG was outright dead. The tech stocks have simply "caught a cold" amid otherwise strengthening businesses, he argued.
A cashier scans a customers purchases at a Home Depot store in New York.Mark Kauzlarich | Bloomberg | Getty Images
Cramer was dumbfounded when he saw the market's immediate response to Home Depot's earnings miss, which the company said was driven by unfavorable weather.
"Within seconds, ... we saw a flurry of articles about how there's a slowdown in housing and even the great orange big-box chain couldn't buck the trend," Cramer said Tuesday.
Earlier, on CNBC's "Squawk on the Street," Cramer told investors to wait and hear what Home Depot's management said before drawing conclusions about the home improvement giant.
Sure enough, when the post-earnings conference call began, Home Depot's stock began to stabilize "as if the sellers said, wait a second, maybe we're overreacting," he said.
For more on why Cramer's still positive on Home Depot, read his take here.
Hubertus Muehlhaeuser, CEO, WelbiltScott Mlyn | CNBC
Foodservice equipment maker Welbilt is getting an "interesting" take on food delivery in its exclusive partnership with robotic pizza-making company Zume, Welbilt CEO Hubertus Muehlhaeuser told CNBC on Tuesday.
"In the past, we said that 50 percent of disposable income is spent on eating outside of the house. Today, we say prepared outside of the house, because delivery has taken off," the CEO told Cramer in a "Mad Money" interview. "Zume is revolutionizing [the] delivery model."
Zume, a California-based company that uses automated robots and humans to make pizza on the go in its delivery trucks, is trying to optimize the "last mile of delivery," Muehlhaeuser told Cramer.
And with Welbilt's kitchen equipment, Zume is not only redefining delivery, but creating a new platform for others to use, the CEO said.
"They want to establish that platform for other delivery services and also for other products," he told Cramer. "You can bake, grill, fry on a truck, so [it's a] great opportunity for us."
Bob Sulentic, CEO, CBREScott Mlyn | CNBC
CBRE Group President and CEO Bob Sulentic is seeing a trend emerge in the commercial real estate market that he hasn't witnessed in decades.
"In my entire career, which is approaching 35 years now, we've never been this deep into an expansion and had so little vacancy in markets around the world," Sulentic, whose company is the largest commercial real estate investment firm in the world, told Cramer on Tuesday.
Focusing on the New York real estate market, which has drawn some bearish criticism of late, Sulentic said that many of the new buildings are going up with buyers already on hand.
"That doesn't mean there aren't pockets where there's some vacancy, but when you look at New York, you see all this new space that's been added. Well, much of it's been spoken for before it's ever been built," the CEO said.
"The amount of office space that's planned to come online in New York over the next several years will only add 2 or 3 percent to the basis of office space. And, of course, you have some becoming antiquated along the way," he told Cramer. "So I think things are generally in good shape."
In Cramer's lightning round, he fired off his take on callers' favorite stocks:
Chesapeake Energy: "No. Just keep thinking. Do not keep buying, because that's nat[ural] gas and we've got too much of that in this country."
Spectra Energy: "It's natural gas transit. People are worried about natural gas transit. If it were oil transit, I'd be two thumbs up, but right now, I've got to tell you, it's got a 9 percent yield [and] it's a little bit worrisome for me. I hope it can grow into that yield, but right now, I'm taking a pass."
Disclosure: Cramer's charitable trust owns shares of Facebook, Amazon and Alphabet.
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - VineQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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a74137b506b6a3e82c551c12cbfb7fbb | https://www.cnbc.com/2018/05/15/cramers-lightning-round-take-a-pass-on-bristol-myers-squibb-shares.html | Bristol-Myers Squibb: "Bristol-Myers right now does not have what we're looking for in terms of that cancer franchise that's going to Merck. I've got to tell you, down here, with a 3 percent yield, it gets attractive. But because of interest rates going higher, I'm going to have to take a pass for the moment."
Chesapeake Energy: "No. Just keep thinking. Do not keep buying, because that's nat[ural] gas and we've got too much of that in this country."
Adaptimmune Therapeutics: "Man, come on, you speculated, you won. Let's not go back to the well."
Icahn Enterprises: "Look, I like Carl Icahn very much. I absolutely love 'When Wolves Bite' by my friend [CNBC host] Scott Wapner. But you know what? I don't really know what's in Icahn Enterprises so therefore I'm not going to be able to opine or recommend the stock."
Quad/Graphics: "Quad/Graphics has a low price-to-earnings multiple because it has no growth whatsoever. It's got a 6 percent yield, but you know what? I'm not reaching for yield when I've got a situation with no growth. I'm taking a pass on that, too."
Spectra Energy: "It's natural gas transit. People are worried about natural gas transit. If it were oil transit, I'd be two thumbs up, but right now, I've got to tell you, it's got a 9 percent yield [and] it's a little bit worrisome for me. I hope it can grow into that yield, but right now, I'm taking a pass."
Consolidated Edison: "Mr. Ed is a buy, buy, buy. [When] this stock comes down is when you buy it. I'm going to throw in a two-fer: I'm throwing in American Electric Power. I'd buy half now and buy half if it goes down again, but I don't know. This stock is a high-quality utility."
L Brands: "I am concerned about L Brands even though it's down 44 percent. It's got a 7 percent yield. But you know what? Again, like another caller that we had about Quad/Graphics, I am not in this business to be able to overpay for yield. I want growth even if it means a lower yield. So I am going to say, again, don't buy."
Clorox: "Clorox is caught up in this whole vortex of the 10-year Treasury going above 3 percent yield. I do think that Clorox does have great growth possibilities and it's at 18 times earnings. I am going to say you can buy half now, and then if it goes down to 4 percent, you buy, buy, buy the other half."
VIDEO5:0105:01Cramer's lightning round: Take a pass on Bristol-Myers Squibb shares for nowMad Money with Jim Cramer
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - VineQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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203a3958f9caa1de6f08590067b1cc78 | https://www.cnbc.com/2018/05/15/europe-markets-seen-lower-amid-geopolitical-risks-oil-prices-near-multi-year-highs.html | European markets close mixed amid earnings; Iliad shares slump 19% | European markets close mixed amid earnings; Iliad shares slump 19%
European markets closed mixed Tuesday afternoon as investors monitored key political and economic risks while oil prices hovered close to multi-year highs.
The pan-European Stoxx 600 closed 0.1 percent higher provisionally, with major bourses and sectors pointing in different directions.
Europe's oil and gas sector led the gains, climbing throughout the afternoon to close up nearly 1 percent. Oil prices themselves recently hit multi-year highs following strong global demand, tension in the Middle East and uncertainty about output from major exporter Iran. OPEC has reported that the global oil glut has virtually been eliminated.
Financial services also performed well, closing up 0.9 percent. British firm Hargreaves Landsown topped the sector to close up almost 2.5 percent. According to Reuters, the company's total assets grew 3.1 percent in the first quarter of this year on strong client demand.
Meanwhile, telecoms stocks led the losses, closing off by over 1.9 percent amid earnings news. French telecommunications firm Iliad slumped to the bottom of the benchmark after it reported earnings that missed expectations. Shares of the company closed 19.5 percent lower — touching their lowest level since late 2013 — after a weak performance in its landline business in the first quarter. Vodafone was also trading lower after the world's second-largest mobile operator reported its long-time CEO is poised to step down in October. Vittorio Colao is set to be replaced by Nick Read, the company's finance director since 2014. The firm's shares closed 4.3 percent down on the news.
Europe's banking sector bounced back from slight losses earlier on in the afternoon, closing up 0.3 percent. Raiffeisen Bank, Commerzbank and Credit Agricole posted their latest figures earlier in the day, with all three lenders near the top of the sector amid better-than-expected earnings over the first three months of 2018.
Looking at individual stocks, ThyssenKrupp posted earnings in line with expectations but higher cost savings and lower IT spending appeared to mask a surprise loss at the company's ailing Industrial Solutions business. Its shares closed 6.5 percent in the red.
On the data front, the mood among German investors remained unchanged at its lowest level in more than five years in May, a survey showed Tuesday. The ZEW research institute said its monthly survey showed a reading of -8.2 — it's lowest level of economic sentiment since November 2012.
U.S. stocks fell Tuesday after Home Depot reported quarterly sales that fell short of Wall Street's expectations and interest rates breached new highs.
The Dow Jones industrial average dropped 200 points, with Home Depot contributing the most losses. The S&P 500 declined 0.7 percent utilities and real estate stocks lagged. The Nasdaq composite dropped nearly 1 percent as Amazon, Microsoft and Google-parent Alphabet all pulled back more than 1 percent.
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0b883beb24fe54b2e88c7d2d000a8d5f | https://www.cnbc.com/2018/05/15/fanduel-ceo-matt-king-tennis-will-win-big-from-sports-betting.html | Tennis could be the big winner now that sports betting is legal, says FanDuel CEO | Tennis could be the big winner now that sports betting is legal, says FanDuel CEO
VIDEO4:3504:35FanDuel CEO: Massive opportunity in expanding ability for users to betSquawk Alley
Basketball may be the most profitable sport in FanDuel's fantasy sports game now, but CEO Matt King bets tennis could benefit most from legalized sports betting.
"The beauty of tennis is that you could literally bet on every single hit in the match — every single point — and so it creates a lot of opportunity for people to engage in the sport," King said on CNBC's "Squawk Alley."
King believes one of the biggest changes that the industry will see, when sports betting becomes more widely adopted, is in-play, or the ability to place bets on every single play. In-play, King says, could open the door to a lot more profit, especially in sports, like tennis where there are more opportunities to bet.
"If you think about the traditional sports book experience, a lot of it is pre-play, or betting on it before it happens," King said.
"The innovation that is going to come into the U.S., we think, will be around in-play or cash-out functionality over time," he added.
These capabilities already exist in Europe, where tennis is wildly popular.
The U.S. Supreme Court on Monday ruled that states can legalize sports betting, breaking up Nevada's monopoly on the practice.
FanDuel, which operates a web-based fantasy sports game with more than 6 million registered users, is gearing up for when the legal sports betting industry comes online.
"We are working with the regulators on what state regulation will look like. Suffice to say, we have the product design, we have our tech team working — we will be ready to go," King said.
Disclosure: CNBC parent Comcast and NBC Sports are investors in FanDuel.
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a124f285ad7472dd1be2d1a49cafd694 | https://www.cnbc.com/2018/05/15/fed-watch-expect-four-instead-of-three-rate-hikes-says-economist.html | The Fed will likely turn more aggressive in raising rates, says Deutsche Bank | The Fed will likely turn more aggressive in raising rates, says Deutsche Bank
VIDEO3:1403:14US yield curve might invert by next year, says economistCapital Connection
The Federal Reserve is likely going to turn more aggressive than it is currently indicating, with more rate hikes than expected coming this year, according to an economist on Tuesday.
"The Fed's got to worry about A: falling behind the curve and letting inflation get out of control; B: tightening too hard and pushing the economy into recession. This is a very delicate balance," Peter Hooper, chief economist at Deutsche Bank Securities.
Although the Fed has said it was going to be gradual with its tightening, it will need to speed things up due to good growth, Hooper told CNBC at the Deutsche Bank Access Asia conference in Singapore.
He said the Fed will likely indicate a shift next month at the Federal Open Market Committee meeting, predicting four instead of the three rate hikes expected.
That view coincides with market sentiment, according to CME's FedWatch tracking tool for the fed funds futures market.
Futures contracts are currently implying a funds rate of 2.21 percent — from the current range of 1.5 percent to 1.75 percent. According to the CME, that translates into a 51 percent chance of a December rate hike, which would be the fourth of the year.
The Fed already approved one quarter-point hike, in March.
Futures trading indicates a 95 percent chance of a June increase — the probability had been 100 percent as recently as last week — and an 81.4 percent likelihood of another move in September.
CNBC's Jeff Cox contributed to this story.
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d0c5405985530becd55b3379c4c2b89f | https://www.cnbc.com/2018/05/15/ford-downgraded-by-piper-jaffray-who-says-the-automaker-is-behind-the-times.html | Ford is falling behind in the autonomous driving push, Piper Jaffray says in downgrading the automaker | Ford is falling behind in the autonomous driving push, Piper Jaffray says in downgrading the automaker
A Ford F-150 truck goes through a quality control inspection after undergoing assembly at the Ford Dearborn Truck Plant.Getty Images
Ford was downgraded by Piper Jaffray on Tuesday because the automaker is not doing enough to keep up with the technological disruptions in the auto industry.
"We appreciate the focus on 'fitness,' as well as Ford's newfound willingness to cull less profitable platforms," analyst Alexander Potter said in a note to clients. "But with U.S. vehicle sales slowly eroding, we think investors are looking for more fundamental changes from Ford — and from automotive companies in general. Ford may yet capture its share of the $1T+ market for autonomous rides, but in our view, the company isn't a leader in this market — at least not yet."
VIDEO2:2002:20Ford is using bionic suits to help employees work saferDigital Original
Potter downgraded Ford to neutral from overweight and lowered his 12-month price target to $12 from $14. The stock closed at $11.18 on Monday and was slightly lower in premarket trading Tuesday.
"Ford's valuation still appears low — and the stock's 7% yield (including special dividend) — still offers downside protection — but relative to other stocks in our coverage, we are less convinced that Ford can find compelling revenue drivers to offset secular threats," Potter added.
Ford shares are off by 10 percent this year even after the automaker said in April it would limit its passenger car lineup to just two models in order to focus on its more profitable truck and SUV business.
"All of these initiatives should deliver improved margins and help offset sluggish SAAR growth — but will this be enough to make Ford stand out against automotive peers? Probably not in our view," the Piper note stated.
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de1285d38a1dfc078064a8d1ddc83fb8 | https://www.cnbc.com/2018/05/15/german-first-quarter-growth-halves-on-weak-trade.html | 'Just a blip': German growth halves in first quarter on weak trade | 'Just a blip': German growth halves in first quarter on weak trade
Francesco Iacobelli | AWL Images | Getty Images
German growth halved in the first quarter of the year due to weaker trade and less state spending, data showed on Tuesday, though analysts said they saw it as a temporary blip.
Europe's biggest economy grew by 0.3 percent in the first three months, the slowest rate since the third quarter of 2016, preliminary data from the Federal Statistics Office showed.
This compared with 0.4 percent predicted in a Reuters forecast of analysts and followed an expansion rate of 0.6 percent in the final three months of last year.
Still, it marked the 15th consecutive quarter of expansion, the longest period of uninterrupted growth since German reunification.
"Is it a pause or a fundamental shift? For us the answer is clear: It's just a blip," DekaBank analyst Andreas Scheuerle said. He pointed to continued strong foreign demand and vibrant domestic activity due to record employment and rising wages.
"However, this should not hide the fact that risks to the economic outlook have risen not least due to the neo-protectionist aspirations and sanctions policy of the U.S. government," Scheuerle added.
VIDEO2:1202:12Trump: Want to deepen economic ties to GermanyPower Lunch
The statistics office said positive contributions in the first quarter came mainly from domestic demand while trade was weak.
"Investment rose sharply, with significantly more investment in construction, but also in equipment," the office said. Household spending rose slightly while state consumption fell.
On the year, the German economy grew by a calendar-adjusted 2.3 percent in the first quarter, the data showed. This was just short of the consensus forecast of 2.4 percent.
The office also confirmed full-year GDP growth of 2.2 percent in 2017 which translated into a calendar-adjusted rate of 2.5 percent. This was the strongest pace since 2011.
The DIHK Chambers of Commerce and Industry also blamed the slowdown in the first quarter on a flu epidemic, an unusually high number of strikes and an above-average number of holidays.
VIDEO3:1503:15As goes Germany, so goes Europe, says former German ambassadorSquawk Box
"The start of the year is a disappointment, but not yet the beginning of the end of the upswing," DIHK managing director Martin Wansleben said. The government has also said it expects the economy to bounce back in the second quarter due to full order books and high employment. Berlin forecasts 2.3 percent growth this year.
"The upswing has cooled down a bit, but it's still intact," Ifo President Clemens Fuest said. "We expect stronger growth rates in the months ahead."
Jennifer McKeown from Capital Economics said the economy will get a boost from increased public spending on child benefits and pensions in the coming quarters while growth among major export partners would also pick up again.
"In all, we still see German GDP rising by 2.5 percent this year as a whole and the renewed strength of the euro zone's largest economy will encourage the ECB to signal this summer that asset purchases will not last into 2019," she added.
The release of the preliminary data does not include a detailed breakdown but only a qualitative assessment. The office will release more detailed GDP results on 24 May.
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3a7cbf94da32b88ed60277fea110645e | https://www.cnbc.com/2018/05/15/german-lender-commerzbank-rallies-after-first-quarter-earnings-beat.html | German lender Commerzbank rallies after first-quarter earnings beat | German lender Commerzbank rallies after first-quarter earnings beat
VIDEO2:0302:03ECB likely to move rates in the second half of 2019: Commerzbank CFOStreet Signs Europe
Shares of Germany's second-largest lender Commerzbank rallied Tuesday after its first-quarter profits beat forecasts.
The bank also said it aims to resume its dividend payouts for this year.
Commerzbank's Chief Financial Officer (CFO) Stephan Engels told CNBC's Annette Weisbach in Frankfurt Tuesday that the company's plan to win business from smaller rivals was paying off.
"The basic model that more customers means more assets and more assets is the foundation for more profitability is working. We are managing to compensate for the drag effect of negative interest rates," he said.
Nonetheless, Commerzbank's strategy to gain market share and reap rewards when interest rates rise is coming under pressure from stuttering European growth. With European data appearing to soften in recent weeks, Engels did not foresee a rise in European interest rates until the second half of 2019.
"(At) the beginning of the year we had higher hopes on interest rate rises, and I think that we have seen a little bit of sobering of that view during this last quarter," he added.
VIDEO1:5901:59Don't believe Commerzbank will be involved in a large, cross-border merger: AxiomStreet Signs Europe
Engels said he believed the European Central Bank would slow its asset purchase program in 2018 and that would benefit corporate yield spreads by the end of this year.
A lowering of corporate bond yields should reduce a firm's borrowing cost and stimulate new issuance.
The CFO added that consolidation would be a required step should European banks seek to compete with bigger U.S. rivals.
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d260f3e9e76f00d344b652e6f964c189 | https://www.cnbc.com/2018/05/15/gold-prices-edge-up-after-hitting-fresh-2018-low.html | Gold rises on short-covering after falling to 4-month low | Gold rises on short-covering after falling to 4-month low
Source: World Gold Council
Gold prices rebounded from a 4-1/2-month low on Wednesday on short-covering as the U.S. dollar came off its 2018 highs and U.S. bond yields sat near multi-year peaks.
Spot gold was 0.2 percent higher at $1,292.51, having gone as low as $1,286.20, its weakest since Dec. 27. U.S. gold futures for June delivery settled up $1.20, or 0.1 percent, at $1,291.50 per ounce.
"A lot of people are trying to cover shorts from the break at the $1,316 level. That was a good area people were betting for the downside," Michael Matousek, head trader at U.S. Global Investors. "Now you want to start taking some profits, because statistically, it looks like it can bounce from the short-term."
Gold prices barely responded to North Korea saying it might not attend the unprecedented June 12 summit with the United States if Washington continues to insist that it unilaterally give up its nuclear weapons. North Korea also called off high-level talks with South Korea scheduled for Wednesday, blaming U.S.-South Korean military exercises.
VIDEO2:3602:36Cashin: Higher yields, mild inflation concerns hit market
But higher 10-year Treasury yields, which stayed near highs hit on Tuesday, capped gold's gains, traders said, as the U.S. dollar came off its highs. A weaker dollar makes gold less expensive for holders of other currencies, but higher U.S. bond yields make non-yielding bullion less attractive to investors.
Bullion had suffered its biggest single-day loss since November 2016 when it fell 1.7 percent on Tuesday to below the 200-day moving average and the psychologically significant $1,300-an-ounce level.
Gold is likely to fall to $1,275 by the end of June and $1,250 by the end of the year as U.S. yields and the dollar strengthen, said ABN AMRO analyst Georgette Boele. That is below the $1,310-$1,360 range gold has inhabited since January. "It held up for so long on such a high level. Now you are below $1,300 and the 200-day moving average; people who hold long positions are a little bit nervous," she said.
Technical and momentum indicators suggested that gold could fall to about $1,278, ScotiaMocatta analysts said. Fibonacci support for the metal was at $1,287, they added.
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fc3138802715a9ef26dc9bf511ffd432 | https://www.cnbc.com/2018/05/15/hedge-fund-focused-on-fighting-tech-addiction-sells-stake-in-facebook.html | Hedge fund focused on fighting tech addiction dumps $80 million worth of Facebook | Hedge fund focused on fighting tech addiction dumps $80 million worth of Facebook
Mark Zuckerberg, chief executive officer and founder of FacebookGetty Images
A hedge fund that's spoken out against iPhone addiction sold all its holdings of Facebook stock in the first quarter, while taking a new stake in Apple.
Jana Partners sold 474,000 shares of Facebook, according to a required quarterly filing with the U.S. Securities and Exchange Commission on Tuesday. The data reflect changes made at some point in the first quarter.
It is not known whether Jana sold out before Facebook dropped more than 20 percent after revealing a consumer data scandal affected 87 million accounts. As of the end of December, Jana's Facebook stake was worth $84 million.
VIDEO2:0602:06House panel releases Russian Facebook contentSquawk on the Street
The hedge fund did not immediately respond to a CNBC request for comment.
In January, Jana Partners and the California State Teachers' Retirement System (CalSTRS) sent an open letter to Apple asking the tech giant to create software that would allow parents more control of what their children can access through an iPhone.
"It is also no secret that social media sites and applications for which the iPhone and iPad are a primary gateway are usually designed to be as addictive and time-consuming as possible, as many of their original creators have publicly acknowledged," the letter said.
Apple said in a statement at the time that since 2008, iPhone software has let parents decide which apps, movies, games and other content children can access.
Jana bought 271,000 shares of Apple in the first quarter, the filing showed. The stake was worth $45.5 million as of the end of March.
CalSTRS held 9.1 million shares of Apple, or 0.18 percent of shares outstanding, as of the end of the fourth quarter, according to FactSet. First-quarter data was not available as of Tuesday morning.
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80aaba2377ed3004514d1c9c7e32c985 | https://www.cnbc.com/2018/05/15/here-are-the-top-legalized-sports-betting-stock-picks-including-boyd-gaming--from-bank-of-america.html | Here are the top legalized sports betting stock picks— including Boyd Gaming — from Bank of America | Here are the top legalized sports betting stock picks— including Boyd Gaming — from Bank of America
Exaggerator #6, ridden by Kent J. Desormeaux, wins the betfair.com Haskell Invitational Stakes at Monmouth Park on July 31, 2016 in Oceanport, New Jersey.Sue Kawczynski | Eclipse Sportswire | Getty Images
The Supreme Court's ruling on sports gambling Monday will significantly boost the sales of several gaming-related companies, according to Bank of America Merrill Lynch.
The court upheld the legality of a 2014 New Jersey law permitting sports betting at casinos and racetracks in the state and voided the federal Professional and Amateur Sports Protection Act.
"The ruling paves the way for the states to enact legislation to regulate sports betting. Betting could commence this year in NJ followed by MS, DE, WV, OR and PA, with more states to follow in 2019," analyst Shaun Kelley wrote in a note to clients entitled "Supreme Court legalizes sports betting – Positive for regionals and gaming tech" Monday. "We expect operator margins to be low but see upside for all of regional gaming, while gaming tech could be a key beneficiary."
VIDEO4:1704:17New Jersey’s Monmouth Park prepares for legalized sports bettingSquawk Box
The analyst predicts the industry's gross gaming revenue from sports betting could rise to $5 billion to $10 billion in five years versus the $200 million current size today. He believes gaming technology providers also have an incremental $250 million to $1 billion annual sales opportunity from the trend.
As a result Bank of America Merrill Lynch raised its price targets for Boyd Gaming to $45 from $42, International Game Technology to $36 from $34 and Scientific Games to $70 from $60.
The firm also reiterated its buy ratings for all three companies.
Boyd operates casinos throughout the Midwest and South along with Las Vegas. International Game and Scientific Games make gambling software and systems.
— CNBC's Michael Sheetz contributed to this report.
Disclaimer
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e1be9a1e0e0e46a061f6b9b11d1c6a1d | https://www.cnbc.com/2018/05/15/japan-gdp-economy-contracted-for-the-first-time-in-nine-quarters.html | Japan's economy shrank for the first time in nine quarters | Japan's economy shrank for the first time in nine quarters
Getty Images
Japan's economy contracted more than expected at the start of this year, breaking the longest run of growth seen for decades, in a blow to Prime Minister Shinzo Abe's reflationary 'Abenomics' polices.
Wednesday's data marked the end to eight straight quarters of economic expansion, which was the longest sequence of growth since a 12-quarter run between April-June 1986 and January-March 1989 during the asset-inflated bubble economy.
The economy shrank by 0.6 percent on an annualized basis, a much more severe contraction than the median estimate for an annualized 0.2 percent.
Fourth quarter growth was revised to an annualized 0.6 percent, down from the 1.6 percent estimated earlier.
Economists say the contraction will be temporary, but there is a risk that trade friction with the United States will hurt export demand, meaning a strong recovery is not assured.
"Globally, IT-related items have been in an adjustment phase, which weighed down Japan's exports and factory output," said Yoshimasa Maruyama, chief market economist at SMBC Nikko Securities.
"The economy is unlikely to continue to contract further. The global economy is performing well and a yen is trading beyond 110 yen against the dollar, so once exports start to grow again, the economy will return to a moderate growth path."
Capital expenditure fell 0.1 percent, down for the first time in six quarters, suggesting corporate investment is not as strong as many economists had forecast. The median estimate was for a 0.4 percent increase.
Wednesday's figures may presage data due on Thursday that is forecast to show core machinery orders, a leading indicator of capital expenditure, fell in March for the first time in three months.
Compared to the previous quarter, gross domestic product (GDP) fell 0.2 percent, more than the median estimate for GDP to be flat, and following a downwardly revised 0.1 percent quarter-on-quarter expansion in October-December, Cabinet Office data showed on Wednesday.
Consumer spending fell marginally, registering a decline of less than one percentage point in the first quarter. The median estimate was for consumer spending to remain unchanged.
External demand — or exports minus imports — added 0.1 percentage point to first-quarter GDP, as imports slowed more than exports.
However, a breakdown of the data shows export growth is losing momentum, expanding 0.6 percent in the first quarter after growth of 2.2 percent expansion in the fourth quarter.
Japan's government is preparing for its annual announcement of guidelines for economic and fiscal policy, but the government has been distracted by allegations of cronyism that have hurt Abe's approval ratings.
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d124f4c1a1705b21c64e8bc38f47c6b6 | https://www.cnbc.com/2018/05/15/kudlow-trump-xi-bromance-could-lead-to-a-china-trade-deal.html | Kudlow: Trump-Xi 'bromance' could lead to a China trade deal | Kudlow: Trump-Xi 'bromance' could lead to a China trade deal
Larry KudlowScott Mlyn | CNBC
Chief White House economic advisor Larry Kudlow believes the U.S. and China can avoid a trade war despite a multitude of issues continuing to split the two nations.
As one of the administration's most ardent free trade supporters, Kudlow has been pushing for an agreement that can eschew heavy tariffs that the financial markets have been fearing.
However, he said China has a long way to go before a deal can be reached.
"China has got to reform its system," Kudlow, head of the National Economic Council, said Tuesday in an interview with Axios. "They've been breaking [World Trade Organization] rules for years on this stuff. They've been behaving like a third-world country."
One of the pillars for his hopes rests on the relationship between President Donald Trump and China's Xi Jinping.
"I think there's a little bit of a bromance between President Trump and president for life Xi," Kudlow said. "Where this leads I don't know. It might even lead to a trade deal, which would make me very happy."
Kudlow also addressed a related issue — the controversy over Chinese telecom company ZTE, which itself has run afoul of global regulations on multiple occasions. Trump tweeted over the weekend that he and Xi have been working on giving a break to ZTE from U.S. sanctions.
However, Kudlow said the ZTE situation is independent of the broader negotiations with China, calling it "principally an enforcement issue. It's divorced from the trade story."
He said there are "gradations" involved in the ZTE case in which the U.S. is trying to find a way to keep the company, which is a major employer, in business.
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22b1c00007bbd90d4790a25dde0555d1 | https://www.cnbc.com/2018/05/15/legal-sports-betting-could-help-gamblers-william-hill-us-ceo-joe-asher.html | Legal sports betting could help gamblers like my dad not get in over their heads: US gaming CEO | Legal sports betting could help gamblers like my dad not get in over their heads: US gaming CEO
VIDEO5:1505:15Expect to see legal sports betting in coming weeks, William Hill US CEO saysSquawk Box
Joe Asher, CEO of the U.S. arm of British bookmaking giant William Hill, said Tuesday he knows from personal experience about the ills of gambling.
In a CNBC "Squawk Box" interview, Asher stressed that companies rushing to cash in on the Supreme Court's decision to open up legal sports betting across America need to act responsibly.
"My dad was a gambler. He bet with his bookie. He bet too much. So for a small segment of the population, it becomes an issue," he said. "Certainly nobody stepped in and helped my dad when he needed help. I know that."
"The point is, I think, that's much more likely to happen in the legal, regulated market than it would ever happen in the black markets," said Asher, who became CEO of William Hill US after the company bought a gambling business he launched in 2008.
Anti-gambling organizations were critical. The high court ruling "will likely increase gambling participation and gambling problems unless steps are taken to minimize harm," said Marlene Warner, president of the National Council on Problem Gambling's board of directors. The council said any government body or sports league that receives a direct percentage or a portion of sports betting revenue should dedicate some of it to treat gambling problems.
For their part, all four major U.S. professional sports leagues — the NBA, NFL, NHL and MLB — as well as the NCAA opposed the ruling, saying a gambling expansion would hurt the integrity of their games.
However, Mark Cuban, billionaire owner of the Dallas Mavericks, said on CNBC on Monday he disagrees. "I think everyone who owns a top four professional sports team just basically saw the value of their team double."
The Supreme Court's decision on Monday was to uphold the legality of a 2014 New Jersey law permitting sports betting at casinos and racetracks in the state.
Ahead of Monday's ruling seven other states — Connecticut, Delaware, Pennsylvania, Iowa, New York, Mississippi and West Virginia — had laws prepared to make sports betting legal. Thirteen other states — California, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Minnesota, Michigan, Missouri, Oklahoma, Rhode Island and South Carolina — have plans or proposals to consider legalizing sports betting.
One of the first sports betting operations to open outside Nevada could be at Monmouth Park racetrack in New Jersey. William Hill US, already the biggest sportsbook in Nevada, invested in sports gambling at Monmouth Park five years ago.
"We always, of course, had an eye outside of the state [Nevada]," Asher told CNBC. "We made a bet back in 2013 on Monmouth Park in New Jersey. And obviously, it turned out to be a pretty good bet," said Asher, who added it could open for business with a few weeks.
VIDEO4:1704:17New Jersey’s Monmouth Park prepares for legalized sports bettingSquawk Box
Dennis Drazin — CEO Darby Development, operator of Monmouth Park — said on CNBC Tuesday the track needs a bit more time before launching.
"It takes a couple weeks to finish off the technology. We weren't sure which way the Supreme Court would rule. We were very confident of victory. But there were two paths. And we wanted to make sure we got it right," Drazin said.
Illegal sports betting in the U.S. has been estimated to generate as much as $400 billion per year. "[That's] where we think it is," he said, predicting a conversion into legal operations in New Jersey of about $10 billion annually.
— CNBC's Michael Sheetz and The Associated Press contributed to this report.
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d8c277961131a3d2b58bbb24776b4ac0 | https://www.cnbc.com/2018/05/15/maria-molland-selby.html | Maria Molland Selby | Maria Molland Selby
Maria Molland Selby is the CEO of Thinx, the feminine hygiene company behind the eponymous leak-proof underwear brand. Maria has over 22 years of experience in the development and management of marketplace, e-commerce, digital media, and technology businesses. She brings broad, international experience and experience scaling different sized companies, from small teams to hundreds of people.
In past roles, Maria was an advisor to eBay's CEO as well as Chief European Officer at Fab.com. Prior to Fab, Maria held global executive roles at corporations like Thomson Reuters, Dow Jones, Yahoo, and Disney. Maria received her BA in Economics, Phi Beta Kappa, from Northwestern University and her MBA from Harvard Business School.
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17c462367d08a418d0db4cafdbbb1d13 | https://www.cnbc.com/2018/05/15/modigliani-painting-fetches-more-than-157-million-at-auction.html | Modigliani painting fetches more than $157 million at auction | Modigliani painting fetches more than $157 million at auction
A painting " Nu couche " by Italian artist Amedeo Modigliani.Source: Sotheby's
A 1917 painting by Amedeo Modigliani of a reclining nude woman that was once considered obscene in Paris sold for over $157 million at an auction in Manhattan on Monday.
"Nu couche (sur le cote gauche)" was the highlight of Sotheby's "Impressionist & Modern Art" sale featuring Pablo Picasso works spanning seven decades, and paintings by Claude Monet, Edvard Munch and Georgia O'Keeffe.
Modigliani shocked Europe at the turn of the 19th century with his series of 22 nudes reclining in every possible position. When the Italian-born, Jewish artist's nudes were unveiled at a Paris gallery, police demanded that it be shut down, offended by the unflinching strokes of his oil brush that thrust art's nude figure into the modern era.
In the past half-dozen years, prices for Modigliani's works have soared, from $26 million the current owner paid for "Nu couche (sur le cote gauche)" in 2003 to as much as $170 million.
Picasso's "Le Repos," an image of his lover and "golden muse," Marie-Therese Walter, sold for $40 million. It was one of 11 Picasso works that were offered Monday evening.
Claude Monet's "Matinee sur la Seine" (Morning on the Seine), part of a lineup of river landscapes he painted while on a boat, capturing the changing light from sunrise to a lightning storm, brought in $20.6 million.
Both Munch's "Summer Night" and O'Keeffe "Lake George with White Birch" each fetched over $11 million.
Modigliani's painting, which had the highest pre-auction estimate at $150 million, was still well short of the record for the most expensive painting ever sold.
Leonardo da Vinci's "Salvator Mundi" sold last year at Christie's for $450 million.
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cb959e07a529e7a0f149024fbf2945d9 | https://www.cnbc.com/2018/05/15/one-area-of-market-that-may-be-secretly-wishing-for-inflation--retail.html | The one area of the market that may be secretly wishing for inflation — retail | The one area of the market that may be secretly wishing for inflation — retail
VIDEO1:2301:23Retailers could be on verge of regaining pricing power, money manager suggestsTrading Nation
Wall Street may be perceiving inflation as a stock market risk, but J.P. Morgan Private Bank's Jack Caffrey suggests there's at least one group that may be secretly hoping for it.
"I actually think most retailers would actually benefit from a discussion about inflation," the firm's equity portfolio manager said Monday on CNBC's "Trading Nation." "That might actually catalyze the consumer to actually spend sooner rather than waiting with the anticipation that it will be cheaper."
After years of deflation, Caffrey notes that the idea of somewhat higher prices could reignite excitement — a factor that's typically bullish for the group.
"I actually think inflation might help some of the retailers actually start prompting somewhat better comparisons," he added.
It's possible big retailers reporting quarterly numbers this week, such as Macy's, Walmart and Nordstrom, could give guidance about inflation. But for now, Caffrey believes it's too early to determine if rising prices will fetch bigger profits. So he's staying neutral on the space.
But there are two areas he's confident will benefit from rising inflation.
"Certainly, financials might be beneficiaries if this leads to a higher interest rate environment or concerns of higher interest rates," Caffrey said. "It could also be helpful for the energy stocks to the extent that higher inflation is caused by higher oil [and] higher gasoline prices."
VIDEO4:1504:15Solid earnings to overpower inflation jitters, J.P. Morgan Private Bank saysTrading Nation
Disclaimer
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41b8227cf4804ad941965eab75f68c43 | https://www.cnbc.com/2018/05/15/protect-your-portfolio-with-these-resilient-stocks.html | Solid economy may not stay that way, says financial advisor. Here's how to protect your portfolio | Solid economy may not stay that way, says financial advisor. Here's how to protect your portfolio
VIDEO4:1504:15It's important to try and manage nervousness and stick with a market that is still good: StrategistPower Lunch
The drop by stocks Tuesday — after the rally where the Dow posted an eight-day winning streak — is a good chance to pick up some defensive stocks, said Jamie Cox, managing partner at Harris Financial Group.
"Even though the economy is charging right along, there's going to be a payback someday," Cox said Tuesday on CNBC's "Power Lunch."
"It's very possible that, with the new tax legislation, and some of the things that are going on, that the economy could go into recession in a couple of years," said the financial advisor. To be more precise, his time frame is one to two years, or by 2020.
As a result, Cox recommended that investors insulate their portfolios with dividend stocks.
Names that "aren't necessarily recession-proof," he said. "But they tend to be resilient."
"Mobile services are a perfect example, because the last thing you're going to do during a recession is turn off your phone," Cox said.
Companies with solid fundamentals are a buying opportunity as interest rates rise and prices drop during sell-offs, he said.
"There's no business condition causing the stocks to fall," Cox said. "It's just the interest rates. So they'll go back up again."
Some sectors to consider are telecom, utilities and consumer staples, Cox said. He recommended Duke Energy, Dominion Energy, AT&T, Verizon and Procter & Gamble.
Cox pointed out that a company like Procter & Gamble was performing badly year to date. "But people need toothpaste," he said. "Like any other investment," Cox said, "it doesn't necessarily pay off right away. What you're trying to do is build your portfolio for income or whatever you're trying to do for the future."
On Tuesday, stocks fell, with all major indexes opening lower. The Dow Jones industrial average dropped nearly 200 points, the S&P 500 shed 0.7 percent and the Nasdaq composite declined 0.8 percent.
Meanwhile, the benchmark U.S. 10-year Treasury yield, hit its highest level since 2011 on Tuesday, at 3.09 percent.
In addition, many market watchers fear the Federal Reserve will raise interest rates as many as four times this year. The first rate increase in 2018 was after the central bank's March meeting.
But Cox said the likelihood of four hikes is small.
At some point the positive effects for companies from the Republican tax law are going to wear off and some of those corporations "are going to stop buying things," Cox said. "That's going to cause a recession or slowdown in the economy."
He warns investors not to assume, "stocks are going to stay up forever."
"They're not going to," Cox said. "Particularly the high-flying ones. If there is a recession, the things that have been bid up the most are going to get hit the worst."
Disclaimer
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329d1b48f2215de6df693d22e2baa636 | https://www.cnbc.com/2018/05/15/small-casino-stocks-may-see-the-biggest-boost-from-sports-gambling-legalization.html | These two casino stocks likely to profit the most from sports gambling, Morgan Stanley says | These two casino stocks likely to profit the most from sports gambling, Morgan Stanley says
UMBC Retrievers guard Jairus Lyles (10) shoots the ball against Virginia Cavaliers forward Isaiah Wilkins (21) during the second half in the first round of the 2018 NCAA Tournament at Spectrum Center.Jeremy Brevard | USA TODAY | Reuters
Gaming stocks jumped after the Supreme Court's ruling on sports gambling but Wall Street found only a couple of betting companies are going to see a notable boost.
Regionally focused Boyd Gaming and Penn National "are likely the biggest beneficiaries in our coverage given their smaller market caps and exposure to numerous states," Morgan Stanley analysts wrote in a note Tuesday.
Morgan Stanley believes sports betting will likely represent less than 2 percent of the $120 billion in U.S. gaming revenue, with the most optimistic case setting the bar at 5 percent. If Boyd and Penn claim a 10 percent market share in the $2 billion market, Morgan Stanley estimates the two gaming companies could bring in about $1.50 per share to $1.90 per share in additional value.
"[The ruling is] a slight positive for regional gaming stocks," Morgan Stanley said.
Sports gambling is coming quickly to about a dozen states after the Supreme Court opened the door to the practice. New Jersey is expected to tax sports betting "at relatively reasonable levels," Morgan Stanley said, with an 8 percent tax on "land-based" bets and 12.5 percent for mobile bets.
The most notable challenge to states remaining is from Congress, according to Cowen analysts. However, "sports gambling opponents lack the votes to enact a ban," Cowen said. States are hungry for the tax revenue, which could be as much as $3.4 billion per year, according to Cowen.
"This is money that states remain desperate for as they try to meet infrastructure, education and other spending needs," Cowen said.
Morgan Stanley said there is also potential value for media companies, "including sports team and rights owners" such as Liberty Media and Madison Square Garden, as well as benefit for Disney and MSG Networks "from increased advertising on live sports content."
VIDEO3:4503:45Mark Cuban on sports betting ruling: Owners will see their team's value doubleSquawk Alley
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13cfb63959a0444ff81c88dd389f8cad | https://www.cnbc.com/2018/05/15/statoil-to-become-equinor-dropping-oil-to-attract-young-talent.html | Statoil to become Equinor, dropping "oil" to attract young talent | Statoil to become Equinor, dropping "oil" to attract young talent
Kristian Helgesen | Bloomberg | Getty Images
Shareholders in Norway's largest company, Statoil, will approve on Tuesday the board's proposal to drop "oil" from its name as it seeks to diversify its business and attract young talent concerned about fossil fuels' impact on climate change.
From Wednesday, the majority state-owned company will change its 46-year-old name to Equinor and trade on the Oslo Exchange under the new ticker EQNR.
The Norwegian government, which has a 67 percent stake in the firm, has said it will back the move.
The oil and gas company said the name change was a natural step after it decided last year to become a "broad energy" firm, investing up to 15-20 percent of annual capital expenditure in "new energy solutions" by 2030, mostly in offshore wind.
"The key reason for a company to change its name is when it wants to widen the scope of its activity or direction. Another reason would be because it is in trouble, and it has a reputational problem," Allyson Stewart-Allen, a London-based international branding expert and the CEO of International Marketing Partners, told Reuters.
"I don't believe that's the case with Statoil."
While the company's profits are growing again, its hydrocarbon business has come under increased scrutiny after the Paris climate deal in 2016.
"A name with 'oil' as a component would increasingly be a disadvantage. None of our competitors has that. It served us really well for 50 years, I don't think it will be the best name for the next 50 years," Eldar Saetre, Statoil's chief executive, told Reuters.
The new name was meant to arouse curiosity among young people so they see the other aspects of Statoil, including renewable energy, he added.
Technology students became less interested in working for oil firms after oil prices crashed in 2014 and renewable energy gained in prominence.
Statoil ranked 15th in an annual survey of the Nordic country's most attractive employers conducted by karrierestart.no, a Norwegian careers website, and Norwegian firm Evidente, published on May 3. In 2013, it ranked first.
There are signs, however, that the name change could help it climb the ranks.
"Students who answered the survey after (news of) the name change found Statoil to be between 5 percent and 10 percent more attractive as an employer,"
Arne Kvalsvik at Evidente said. "It's likely that Statoil's name change will have a positive impact on its reputation going forward."
Statoil said it remained the first choice among technology students, citing another survey by Swedish firm Universum.
Truls Gulowsen, head of Greenpeace Norway, said the name change would not be sufficient to improve Statoil's image as long as the firm was exploring in vulnerable areas, such as the Arctic or the Great Australian Bight.
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47d64be02e6d9cfb7f350f86767a5bd0 | https://www.cnbc.com/2018/05/15/stocks-making-the-biggest-moves-premarket-hd-ulta-cbs-tsla-f-wynn-more.html | Stocks making the biggest moves premarket: HD, ULTA, CBS, TSLA, F, WYNN & more | Stocks making the biggest moves premarket: HD, ULTA, CBS, TSLA, F, WYNN & more
Check out the companies making headlines before the bell:
Home Depot – Home Depot earned $2.08 per share for the first quarter, 3 cents a share above estimates. Both revenue and comparable-store sales were below Street forecasts, but the home improvement retailer attributes the shortfall to bad weather and is maintaining its full-year sales forecast.
Ulta Beauty – Oppenheimer upgraded the cosmetics retailer to "outperform" from "perform," noting the potential for improvement in comparable-store sales.
CBS – CBS was upgraded to "outperform" from "market perform" at Bernstein, based on what it sees as a "near zero" chance of a deal for Viacom.
Tesla – Morgan Stanley cut its price target on the stock to $291 from $376 per share, noting that recent management departures and the just-announced reorganization suggest the need to address various technical and fundamental hurdles that are weighing on the automaker's margins.
Ford Motor – Piper Jaffray downgraded the automaker's stock to "neutral" from "overweight," saying Ford will have difficulty finding compelling revenue drivers that will offset what it calls secular threats.
Wynn Resorts – The company announced that director John Hagenbuch will not stand for re-election, while Robert Miller submitted his resignation from the casino operator's board. Wynn's biggest shareholder, Elaine Wynn, had been campaigning against Hagenbuch's re-election.
Symantec – Symantec said an internal accounting probe would likely not result in any material impact on its past financial statement. The cybersecurity software maker also gave an upbeat forecast.
Vipshop – Vipshop earned $1.05 per share for the first quarter, 6 cents a share below estimates. The China-based discount retailer reported slightly better-than-expected revenue. Shares are under pressure after Vipshop issued a weaker-than-expected current quarter revenue forecast.
Switch – Switch earned 14 cents per share for its fiscal fourth quarter, compared to an expected loss of 14 cents per share. The data hosting company's revenue came in above estimates and it issued an in-line forecast for the current year.
STMicroelectronics – The company is forecasting stronger-than-expected 2018 revenue growth, as the chipmaker's business accelerates in the automotive, industrial, and other categories.
Vodafone — CEO Vittorio Colao will step down in October after 10 years on the job. The mobile operator said finance director Nick Read will replace Colao.
Amazon.com – Amazon and other Seattle companies will be hit by a new tax on the city's biggest businesses, which applies to companies grossing at least $20 million per year. Amazon said it would still go ahead with planning for a new major downtown office building.
Gap – The apparel retailer was upgraded to "outperform" from "market perform" at Telsey Advisory Group, which thinks Gap shares are at a compelling valuation and that any promotional pressures during the first half of this year are already known and reflected in the stock's price.
Agilent – Agilent reported adjusted quarterly profit of 65 cents per share, beating estimates by a penny a share. Revenue was in line with forecasts, but the medical device maker issued a lower-than-expected forecast for the current quarter and the full year.
Goldman Sachs — An executive shift at Goldman Sachs could mean that the firm may split its fixed income and equities arms, according to The Wall Street Journal.
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04ec63258ec9abd5171f473817502f4f | https://www.cnbc.com/2018/05/15/tax-changes-give-defined-benefit-plans-new-life.html | Tax changes may give defined benefit plans new life | Tax changes may give defined benefit plans new life
Business owners who want to take advantage of the new 20 percent qualified business income (QBI) deduction under the 2017 tax law may want to consider having not only defined contribution retirement plans, such as 401(k) plans, but also defined benefit plans similar to old-fashioned pensions.
Peter Dazeley | Getty Images
Defined benefit plans may be especially interesting now to certain entrepreneurs, investors and professional practitioners with earnings too high to take advantage of the QBI, said Timothy Speiss, partner in charge of EisnerAmper Personal Wealth Advisors. "It's very significant, and the 2017 tax legislation is important," Speiss said.
The Tax Cuts and Jobs Act passed by Congress and signed into law by President Donald Trump in 2017 didn't directly address defined benefit retirement plans, which pay pension benefits based on an employee's years of employment and final salary. However, it did change tax deductions in ways advisors say make defined benefit plans more appealing.
One important 2017 tax change created the QBI deduction. This lets the owner of a partnership, sole proprietor, trust or S corp deduct from his or her taxable income the lesser of 20 percent of the business' QBI or 50 percent of W-2 wages the business paid the owner. At the top tax rate of 37 percent, higher deductions can result in hefty savings.
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The catch is that business owners in a number of fields — including health, law, sports and performing arts — cannot use QBI if their adjusted gross income is too high. For married couples filing jointly, the cap is $315,000. It's $207,500 for heads of households and $157,500 for single filers. This incentivizes business-owning taxpayers to make adjusted gross income fall under the QBI cap.
Speiss said business owners whose income is too high to let them use the QBI may be candidates for defined benefit plans in combination with defined contribution plans, such as a 401(k). If deducting the maximum allowable contributions to a 401(k) still leaves them over the $315,000 cap, they may be able to add a defined benefit plan and use deductible contributions to that to bring their incomes below the cap and save thousands in taxes, according to Speiss.
Defined benefit plans also help high earners cope with new limits on state and local taxes, or SALT, said Rob Wolfe, certified financial planner and managing director of United Capital. The 2017 tax law limits SALT deductions, including property taxes and state income taxes, to $10,000, noted Wolfe, whose clients include high-earning athletes.
The SALT limit means a professional basketball player earning $10 million in W-2 wages in a state like California, where the state income-tax rate is 10 percent, could deduct just $10,000 on his federal return instead of the $1 million in state income tax deductible under the old law, Wolfe said. A defined benefit plan can't directly reduce W-2 taxes. But if the player also endorsed athletic gear for pay, he or she can set up a company to receive endorsement fees and fund a defined benefit plan to trim the total tax bill.
This is an example of how defined benefit plans can fit into today's tax environment, Wolfe said. "The defined benefit plans themselves haven't changed substantively based on the new tax law," he added. "It's just that the new tax law will drive some people to find more tax deductions this year."
Defined benefit plans aren't suitable or even available for every high-income earner. For instance, sole proprietors who didn't set up a defined benefit plan by April 15, 2018, can't deduct contributions from 2017 income. Other business entities also have dates by which they must have defined benefit plans in place to use them for 2018.
An important consideration is that under federal law, employers can't use defined benefit plans strictly for their own benefit. "The caveat to be aware of is if you have employees, you have to make sure you're benefiting them as well," said Speiss at EisnerAmper Personal Wealth Advisors.
That means defined benefit plans may be less suitable for business owners who don't have reliable, steady income to fund employee contributions, said Jason Labrum, certified financial planner and president of Labrum Wealth Management. "The cost can be higher with a defined benefit and given the discrimination rules, it often becomes cost prohibitive because you are required to put money in for employees," he said.
Lower-cost, more flexible defined contribution plans using vehicles such as Roth 401(k) plans may be preferable for many business owners, Labrum added. "We typically see defined benefit plans working best for the self-employed or businesses with few and typically younger employees," he said.
The popularity of defined benefit plans has been slumping for decades, but thanks to the new tax law, that could be slowing or even reversing. "Although we installed a significant number of new defined benefit plans for clients in years past, including 2017, we expect the adoption rate in tax years 2018 and beyond to increase at an accelerated rate," said Wolfe at United Capital. "It just makes sense for clients with the right fact pattern."
Not everyone is so enthusiastic. Defined benefit plans have a one-time allure right now because the new tax law lets companies with a fiscal year ending by Septermber 15, 2018, take pension deductions at higher 2017 tax rates, according to Joseph Roseman, managing partner with O'Dell, Winkfield, Roseman and Shipp.
But, longer term, Roseman thinks companies will continue to steer clear of defined benefit plans in favor of defined contribution plans that cost less and shift risks off employers and onto employees. "I don't see that trend changing because of the new tax law," he said.
Speiss at EisnerAmper Personal Wealth Advisors still maintains that defined benefit plans will appear in more discussions with business owners and advisors.
"We do think that defined benefit plans are going to be reexamined," he said. "And we do think that employers are going to be adopting them more."
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3c6788845872edc1571ac1b6ae2942e9 | https://www.cnbc.com/2018/05/15/tesla-moving-in-a-good-direction-with-shutdown-gene-munster.html | Tesla is 'moving in a good direction' with shutdown, says investor Gene Munster | Tesla is 'moving in a good direction' with shutdown, says investor Gene Munster
VIDEO2:2402:24Why Tesla's Model 3 production pause is a big deal: Loup's Gene MunsterClosing Bell
Tesla's move to shut down production of its Model 3 for six days is a "big deal" but it's not necessarily a bad thing, tech analyst-turned-venture capitalist Gene Munster told CNBC on Tuesday.
The electric car maker plans to pause production at its California factory at the end of May to work on fixes to its assembly line, sources inside the company told Reuters.
"This manufacturing shutdown is evidence that things are moving in a good direction," Munster said on "Closing Bell."
A Tesla Model 3 car is on display during the Auto China 2018 at China International Exhibition Center on April 25, 2018 in Beijing, China.VCG/VCG | Getty Images
Tesla had previously warned of 10 days of temporary shutdowns this quarter to address issues that have delayed volume production of its new Model 3 sedan.
Munster, managing partner at venture capital firm Loup Ventures, said that Tesla's desire to re-engineer the manufacturing process requires the shutdown. However, Munster said he is "delighted" about the new technology it plans to implement, which he called "a whole new paradigm around manufacturing."
Meanwhile, Munster also is not concerned about the recent management shake-up at Tesla.
On Monday, CEO Elon Musk told employees that the company plans to "flatten" its structure as it works to improve communication and trim activities "that are not vital" to its success.
"Elon Musk has been very deliberate at stepping in and taking more control of company in the last few weeks," Munster said, pointing out that Musk sees the next three months as a "critical window" for Tesla's success.
"I'm comfortable that they are moving things in a good direction," he said.
— CNBC's Robert Ferris and Reuters contributed to this report.
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aeb9a70a9350af84399ea29b440f5c57 | https://www.cnbc.com/2018/05/15/the-gmat-is-no-longer-the-only-way-into-business-school.html | The GMAT is no longer the only way into business school | The GMAT is no longer the only way into business school
Harvard Business SchoolBrooks Kraft LLC/Corbis | Getty Images
When Allison Grant applied to business school, she did not know which of the two possible entrance exams would give her the best chance of a place. So she sat both.
The standard pan-business school entrance exam has for decades been the Graduate Management Admission Test — or GMAT. However, in recent years it has faced increasing competition from another standardised test, the Graduate Record Examinations — or GRE.
Although the GRE was designed for those seeking entrance to generalist graduate schools, more than 1,200 MBA programmes now accept it in applications. Ms Grant scored higher in the GRE, so she submitted that score in her MBA applications, landing a place at Northwestern University's Kellogg School of Management.
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"People said that five years ago it really mattered that you took the GMAT," the 29-year-old former Uber executive says, "but that is no longer the case."
The rivalry between the two exam administrators intensified last month with the decision by the Graduate Management Admission Council to shorten its GMAT exam by 30 minutes.
"We didn't want to waste candidates' time," Vineet Chhabra, GMAT's global product head, says, noting that there were fewer unscored research questions in the exam.The change made the GMAT nearly 40 minutes shorter than the GRE, which lasts three hours and 45 minutes.
Exam length is a problem, according to education consultancy CarringtonCrisp, which claims that a fifth of MBA applicants are so averse to exams that they will only apply to schools where they do not have to take a formal entrance test.
"Schools are saying: 'If we can get interesting candidates we don't need to make them take the GMAT'," says Andrew Crisp, co-founder of CarringtonCrisp. He adds that the move to shorten the exam reflects another trend, noted in surveys by GMAC, of shrinking US demand for MBA courses.
The GRE was once an upstart, says Chioma Isiadinso, co-founder of Expartus, a US admissions agency. That has changed: "Many schools now track the performances of their incoming class GRE scores," she says. "We advise clients to take practice exams for both tests, then take the test that they perform best in."
Despite increased acceptance of the GRE, the GMAT may give MBA applicants an edge. A survey of business school admissions officers last year by Kaplan Test Prep found the GMAT was preferred by 21 per cent of those accepting both exams for MBA applications. Just 1 per cent said those submitting a GRE score would have an advantage over an applicant taking GMAT.
Some schools have made it harder for GRE-takers to apply. Insead, for example, previously allowed candidates to submit test results from either exam, but now accepts GRE scores only if it is not possible for the applicant to take the GMAT in their home country — it recently allowed this for a Palestinian applicant. "The long history of the GMAT test means that it is our preferred option," the school says. This bias is common among the highest-ranked schools, according to Stacy Blackman, an admissions consultant based in Los Angeles.
"GMAT is still largely viewed as more rigorous and serious," she says. "The GMAT is developed specifically for business school, while the GRE is a more flexible exam."
Judi Byers, executive director of admissions at Cornell's Johnson Graduate School of Management, believes greater competition among exam administrators is good, not only for students but also for schools eager to find more ways to assess candidates. She advises taking both tests, ideally while the potential applicant is still in full-time undergraduate study, as GMAT and GRE scores are valid for five years.
"Candidates run into hiccups with the entrance exam mainly because they have not taken formal tests for many years," Ms Byers says.
Judith Hodara, a director of Fortuna Admissions, an MBA applicant advisory service, and former admissions head at the Wharton School, says at Wharton she tried to include GRE takers to broaden the pool of students accepted on to its high-ranking MBA course.
A formal test result was only one criteria on which MBA candidates were judged, Ms Hodara notes, and not necessarily the most important.
"As admissions directors we were always looking at the overall quality of an applicant rather than just a number," she says. "Our hearts went out to those who genuinely struggled with standardised tests."
GRE takers were accepted at Wharton, but Ms Hodara admits that "the business school love affair with the GMAT is likely to continue — so learn to love the GMAT".
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0246ac14bbb6288fd269e9848963540c | https://www.cnbc.com/2018/05/15/the-latest-stock-market-rally-seems-trustworthy-for-now.html | The latest stock market rally seems trustworthy, for now | The latest stock market rally seems trustworthy, for now
A trader pauses while working on the floor of the New York Stock Exchange.Getty Images
We've been here before — and pretty recently at that — and it led to frustration: Stocks are bouncing nicely off the bottom of their months-long trading range and are making a run higher.
The bulls are talking about an uptrend preserved and strong corporate fundamentals, while skeptics wonder why stocks have struggled despite all the good news and cite a tired, aging economic cycle.
The S&P 500 index is up some 4 percent in less than two weeks and is 6 percent above its early-April low. This spurt higher has taken the index from the lower reaches of its correction zone up past the midpoint of its 2018 range for the third time since February. Those two earlier upside excursions stalled and the market slunk back toward the "down 10 percent from a record high" level.
So can this rally be trusted?
It actually looks more reliable than the previous attempts. It got rolling from slightly higher levels, after several weeks when the market hung around the lows but refused to buckle beneath its longer-term rising trend.
The choppy, anxious period went on long enough that the market absorbed several shifting and sometimes conflicting negative storylines, from the chance for surging bond yields and galloping inflation to a rollover in global growth to possible trade war and blowup in popular volatility-trading funds.
More important, the market's vital signs have returned to normal in this rally attempt. The Cboe Volatility Index (VIX) is below 13, a tame level that suggests a steadier tape, compared with 15 or higher during those earlier market bounces.
The best corporate-earnings season in years is mostly in the books. The results show impressive evidence of corporate prosperity and bolster the earnings base for valuation purposes, making equities look a good deal less expensive than they did a few months ago. The now trades at 16.5-times the consensus earnings forecast for the next 12 months, down from 18.6-times in late January.
This doesn't exactly make stocks a bargain, but it helps compensate for the rise in bond yields. Stocks during this cycle have never had a smaller valuation cushion compared with corporate-debt yields, but that cushion is a good deal higher than it was throughout the 1990s and mid-2000s.
The wind-down of earnings season also releases companies to restart their heavy share-buyback activity. This is perhaps at least as much a psychological aid as a powerful direct source of buying demand, but in the current backdrop it helps investors feel more comfortable shouldering market risk.
The passage of more than three months' time with the indexes trading well below their peak also worked to reset investor sentiment and positioning to a more defensive condition. Bullishness among retail and professional investors has moderated. And hedge funds as a group have reduced their equity exposure dramatically since January.
On the flip side, the Wall Street dealer firms considered the "smart money" — which accommodate hedge-fund positions and take the other side of their trades — now have a bigger long position in S&P 500 index futures than they've had in two years.
The leadership profile of the market looks decent, too. Technology, industrials, energy and financials are outperforming lately — the cyclically attuned groups that a bull would want to see lead.
The small-cap Russell 2000 is also on the verge of a new high, buoyed in part by its domestic-consumer components. While small stocks have no special predictive power for the broad market, their improved relative strength lately is at least assurance that this rally attempt is not simply the work of a handful of big tech stocks, which now have such huge sway over the large-cap indexes.
This all probably sounds comforting, and should. Yet it together leads to more confidence that the recent lows would provide decent support than that an exuberant rush higher is underway.
This is why some longtime market observers are reserving a full endorsement of this rally's staying power, or its chances to continue its run toward the January highs right away.
Chart watchers who are sticklers for "key levels" believe the S&P 500 will not truly have turned the near-term trend positive unless and until it gets back above the 2,750 mark (from which it dropped hard in mid-March and hasn't revisited since).
Jeff deGraaf, a strategist at Renaissance Macro Advisors, sees the market in a healthier spot and likely to work its way higher from this correction phase. But he's unimpressed by the relatively weak momentum displayed in the latest move higher. He watches for the number of 20-day highs in individual stocks to expand as the index rises, and that has not happened in recent days. He sees this as a more selective tape consistent with "late-cycle" market conditions.
Strategists at Morgan Stanley are also focused on the status of the broader cycle, and what it means for investor returns at a time when Main Street is thriving and labor markets are tight: "After nine years of markets outperforming the real economy, we think the opposite now applies as policy tightens."
And, of course, it's possible stocks will again be challenged by some features of this stage of the cycle, whether another push higher in yields, the Federal Reserve methodically lifting rates, inflation picking up or corporate profit-margins coming under pressure.
In other words, in Ronald Reagan's famous phrasing, trust this rally for now, but verify its fortitude as new tests emerge, as they surely will.
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bfc4a9afa066ec696d55c5963bf31944 | https://www.cnbc.com/2018/05/15/thyssenkrupp-q2-earnings-2018.html | Thyssenkrupp Q2 operating profit up on steel recovery | Thyssenkrupp Q2 operating profit up on steel recovery
VIDEO3:4003:40Thyssenkrupp CFO: We’ve had our best first half since 2011Squawk Box Europe
German technology and industrial conglomerate Thyssenkrupp on Tuesday posted a 17-percent increase in its second-quarter operating profit, helped by a recovery in steel prices that has already benefited larger rival ArcelorMittal.
The group, which makes everything from submarines to chemical plants, said second-quarter adjusted earnings before interest and tax (EBIT) came in at 500 million euros ($597 million), in line with the average analyst forecast in a Reuters poll.
Profit at the group's Steel Europe division, to be merged with the European steel unit of Indian peer Tata Steel, more than doubled to 198 million euros, driven by a sharp recovery in prices so far this year.
ArcelorMittal, the world's largest steelmaker, last week said the outlook for this year had improved, expecting higher demand for steel in machinery and construction amid solid expansion in the United States and Europe.
The steel joint venture with Tata Steel forms the core of Thyssenkrupp Chief Executive Heinrich Hiesinger's plan to move the company away from the volatile steel sector and strengthen its focus on industrial goods, such as elevators and car parts.
The group's struggling Industrial Solutions unit posted an operating loss of 23 million euros in the quarter. Thyssenkrupp said a turnaround plan initiated last year should lead to a significant increase in earnings in the second half.
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a113485ce741973e629f936a4d020f06 | https://www.cnbc.com/2018/05/15/to-sway-trump-on-trade-businesses-turn-to-cable-tv.html | To sway Trump on trade, businesses turn to cable TV | To sway Trump on trade, businesses turn to cable TV
Comedian Ben Stein.M. Phillips | WireImage | Getty Images
WASHINGTON — When President Trump tunes into "Fox & Friends" on Monday morning, he may see a familiar face delivering a gentle warning that tariffs are "B-A-D economics."
In a last-ditch attempt to persuade Mr. Trump to back away from his trade approach, the National Retail Federation has enlisted Ben Stein, the comedic economist famous for his role in the 1980s film "Ferris Bueller's Day Off," to offer Mr. Trump economic advice via advertisements that will air on the president's favorite TV network.
"There's really an audience of one in this decision making," said David French, chief lobbyist of the National Retail Federation, which represents the retail industry. "For the president, this will seem like a winning strategy for a long time until it isn't."
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Mr. Trump's steel and aluminum tariffs and his threat of levies on Chinese goods have spurred concern across industries, including agriculture, automobiles and retailing, which worry they will be caught on the losing end of a trade war. Businesses say Mr. Trump's approach risks derailing America's strong run of economic growth with a self-inflicted mistake on trade, one that will ultimately cause harm to consumers and the economy.
They hope to pressure Mr. Trump at a crucial moment. American companies will have a chance to air their concerns about the proposed tariffs on Chinese goods during three days of hearings that the United States trade representative will hold beginning on Tuesday. Chinese Vice Premier Liu He, China's top economic official, is also expected to visit Washington — possibly as early as this week — for more trade talks with top administration officials. And the White House is in the midst of trying to reach a deal with Canada and Mexico to revise the North American Free Trade Agreement, a deal that has become integral to many American industries.
In comments at the White House on Friday, Mr. Trump reiterated that Nafta has been a "terrible deal" and said that Canada and Mexico were disappointed to be losing the "golden goose" that has been the United States. Republican lawmakers have said that the framework of a deal needs to be revealed this month if Congress is going to vote on it this year, putting pressure on the administration to either agree to a revised pact or follow through with Mr. Trump's threat to abandon the 1994 agreement.
Whether an ad campaign can sway Mr. Trump on tariffs remains to be seen, but there is evidence that it has had some impact in the past. A little more than a year ago, retailers took to the airwaves to try to kill a type of broad tax on imported goods, known as the "border adjustment tax," that Paul D. Ryan, the House speaker and a Wisconsin Republican, was pitching as a centerpiece of the Republican tax plan. The National Retail Federation blanketed television networks with catchy anti-B.A.T. commercials that claimed that the proposed import tax would hit consumers in their wallets.
Eventually, Mr. Trump and Republican leaders in Congress cooled to the idea and it was shelved.
The retail industry hopes to persuade Mr. Trump by once again talking about the impact on consumers' wallets. The group projects that Mr. Trump's tariffs could cause the price of Chinese-made televisions to rise nearly 25 percent. It predicts that if China retaliates with punitive measures of its own, thousands of jobs could be lost in states won by Mr. Trump in the 2016 election.
Because so much of the power to make decisions on trade is concentrated in the White House, lobbyists are working to get Mr. Trump's attention directly rather than by canvassing congressional committees. The six-figure purchase will place the commercial on "Fox & Friends," the Fox News morning show that Mr. Trump watches regularly and often quotes on Twitter. It will also be appear on the comedy show "Roseanne," which seeks to appeal to Trump voters, and on "Saturday Night Live," which regularly mocks the president with impersonations by Alec Baldwin.
"You have a president, it's no secret, who likes to watch television," said Evan Tracey, senior vice president of National Media Research, Planning & Placement, a Republican media firm, who noted that advertisers used to try to reach President Barack Obama, a sports fan, on ESPN. "From an advertising standpoint, you always want to sort of go where the ducks are."
He added: "If you want to get your message in front of President Trump, the strategy to go to cable news is not a bad one."
Retailers are not the only ones seeking to soften Mr. Trump's trade instincts. In recent weeks, the manufacturing, solar and farming lobbyists have all unveiled their own advertising campaigns to push back against tariffs.
"I'm supportive of the Trump administration, but I have a lot of concerns about current actions that have been taken on trade and tariffs," said Brent Bible, an Indiana soybean farmer in a national television ad produced by Farmers for Free Trade. "The fact that China is our No. 1 soybean customer makes us very vulnerable."
That ad appeared on Fox, CNN and MSNBC in Washington and in Florida, where Mr. Trump often spends weekends at his Mar-a-Lago golf resort.
Mr. French, of the retail industry group, said it recruited Mr. Stein for the advertisement because his part in "Ferris Bueller's Day Off" resonates with a broad demographic. The group shot the 30-second clip in early April and has been waiting to use it when the prospect of a trade war reaches an inflection point.
While trade policy can be abstract, a bespectacled Mr. Stein, standing before a chalkboard with a lesson on "Smoot-Hawley," a 1930 protectionist tariff act that helped fuel the Great Depression, tries to make the costs of levies as simple as possible.
"Tariffs raise taxes on hard-working Americans," he says in his notorious monotone. "It's not complicated."
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8c9b048d821279917af162e52b15401c | https://www.cnbc.com/2018/05/15/uber-ends-forced-arbitration-agreements-for-employees-riders-and-drivers.html | Uber ends forced arbitration agreements for sexual misconduct claims | Uber ends forced arbitration agreements for sexual misconduct claims
Martin Ollman | Getty Images
Uber said Tuesday it is taking steps to bring "transparency, integrity, and accountability" to its handling of sexual misconduct in the workplace and involving riders.
The San Francisco-based ride-hailing company said it's rolling back the use of forced arbitration agreements for employees, riders and drivers.
Giving victims of sexual assault or perceived sexual harassment more options sends an important message that Uber is taking the issue more seriously, said a spokeswoman for Raliance, a coalition of groups working with the company to prevent sexual abuse on its service.
Last year, co-founder Travis Kalanick was pushed out as CEO as Uber faced accusations including a workplace culture of sexism and sexual harassment, as well as a cover-up of a massive data breach, dirty tricks and stolen trade secrets.
Dara Khosrowshahi, who took over for Kalanick in August, has been taking steps to address the issues. In January, Khosrowshahi told CNBC the "moral compass" at the company was not pointing in the right direction under Kalanick, whose hard-driving vision turned Uber into one of the world's most valuable private companies but also allegedly allowed a toxic work environment to fester.
In a press release Tuesday, Uber said, "maintaining the public's trust, and earning back the respect of customers we've lost through our past actions and behavior, is about more than new products and policies. It requires self-reflection and a willingness to challenge orthodoxies of the past."
To that end, Uber also said people who allege sexual assault or sexual harassment against the company will now have the option of settling their claims without a confidentiality provision.
Uber said it plans to publish a "safety transparency report," including data on sexual assaults and other incidents that happen on the platform.
The changes governing sexual misconduct come a month after Uber announced that it will perform criminal background checks on its U.S. drivers annually and add a 911 button for summoning help in emergencies. It's an effort to reassure its riders and address concerns that it had not done enough to keep people from using its service to prey on potential victims.
— Associated Press contributed to this report.
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9ca54398fd0333b6e0eb38014ac27b3c | https://www.cnbc.com/2018/05/15/verizon-ceo-lowell-mcadam-we-have-no-interest-in-being-a-tv-network.html | As media companies fight over Fox, Verizon says it has 'no interest' in being a traditional TV network | As media companies fight over Fox, Verizon says it has 'no interest' in being a traditional TV network
VIDEO14:1914:19Verizon CEO Lowell McAdam on the future of 5GSquawk on the Street
As Comcast and Disney ratchet up bids for 21st Century Fox assets, Verizon says it's staying out of the fight.
CEO Lowell McAdam said Tuesday the company has "no interest" in being a traditional TV network, focusing instead on digital media assets and investment in 5G wireless service.
Verizon was previously reported to have made an offer for the Fox assets, but ultimately lost out to Disney. Comcast earlier this month challenged that proposed purchase, preparing an all-cash offer of $60 billion, according to CNBC sources.
"We have looked at these assets over the period of time. We've made the decision that digital is the way for us to go," McAdam said.
Verizon's original bid was rejected because it offered to acquire Fox at market value, without a meaningful premium, according to a recent joint regulatory filing by Disney and Fox.
McAdam said Verizon is "plowing money" into the development of 5G, which he said will "usher in the fourth industrial revolution for this country."
"Our strategy is to get digital content out there over the fastest pipe we can at the lowest cost and that's why 5G makes so much sense," he said.
—CNBC's David Faber contributed to this report.
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67634174af61caada7b81b2c9991a3ef | https://www.cnbc.com/2018/05/15/vodafones-vittorio-colao-to-step-down-in-october.html | Vodafone CEO Vittorio Colao to step down in October | Vodafone CEO Vittorio Colao to step down in October
Vittorio Colao, chief executive officer of Vodafone Group Plc, poses for a photograph in London, on Monday, Sept. 2, 2013.Jason Alden | Bloomberg | Getty Images
Vodafone Chief Executive Vittorio Colao will step down in October after 10 years in which he reshaped the world's second largest mobile operator into a digital communications powerhouse with a string of major deals.
Colao will be replaced by Nick Read, finance director since 2014 and long seen as the likely successor due to his role in running Vodafone's operations in Britain and the Africa, Middle East and Asia Pacific region.
He will take charge of a group that, under Colao, pulled back from its once brazen expansionist drive to be able to build up its European operations from a pure mobile player to a broader communications provider that offers everything from cable TV to broadband and enterprise services.
Just last week Colao, 56, struck a long-expected $21.8 billion deal to buy Liberty Global's cable TV and broadband networks in Germany and Eastern Europe.
But he will be best remembered for one of the world's biggest deals - the $130 billion sale of its joint venture holding with U.S. group Verizon.
"(Colao) has been an exemplary leader and strategic visionary who has overseen a dramatic transformation of Vodafone into a global pacesetter in converged communications, ready for the Gigabit future," Chairman Gerard Kleisterlee said.
Vodafone is also merging its operations in the highly competitive Indian mobile market with Idea Cellular.
In Read, investors will get a new chief executive long groomed for the job.
Having joined Vodafone in 2001 he has held a number of roles including sitting on the boards of the company's listed operations in Africa and Qatar, its subsidiaries in India and Egypt and its joint venture in Australia.
"Nick has been the co-architect of the Group's strategy together with Vittorio," Kleisterlee said.
Read will be replaced by his deputy since 2015, Margherita Della Valle. The Italian has previously held other financial and marketing roles within the group after she joined Omnitel Pronto Italia - which later became Vodafone Italy - in 1994.
The announcement came as the company reported a 1.4 percent rise in organic service revenue for its fourth quarter, beating analyst forecasts of a 1.1 percent rise.
Full year core earnings rose 11.8 percent to 14.7 billion euros, beating guidance for "around 10 percent" organic growth and just ahead of analyst forecasts of 14.6 billion euros.
For 2019, the group forecast organic adjusted core earnings growth of between 1 and 5 percent, and free cash flow before spectrum costs of at least 5.2 billion euros, slightly down on the 2018 number of 5.4 billion euros.
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2135fae1f882751ae804c9cc6c8481f3 | https://www.cnbc.com/2018/05/15/your-first-trade-for-tuesday-may-15.html | VIDEO1:1601:16Final Trade: AMD, WEED & moreFast Money
The "Fast Money" traders shared their first moves for the market open.
Pete Najarian was a buyer of Advanced Micro Devices.
Tim Seymour was a buyer of Aphria.
Dan Nathan was a buyer of Canopy Growth.
Guy Adami was a buyer of FireEye.
Trader disclosure: On May 14, 2018, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Pete Najarian is long calls AKS, ARNC, BAC, BEL, CI, COTY, CTL, DVN, EWZ, FDC, GLD, GM, HD, INTC, KHC, LUV, MAS, MGM, MPC, MU, NEM, OIH, RIG, SLV, SVU, XHB, XLF. Pete is long stock AAPL, ATVI, BAC, BKE, C, FUL, GM, HLT, IBM, KMI, KO, LOW, LVS, MRK, MSFT, MU, PEP, PFE, PII, PYPL, STZ, TGT, TPX, UFS, UPS, WYNN, XOM. Pete owns puts QQQ, XLI. Pete bought AMD, SPY calls. Pete sold HD calls. Pete bought VFC stock. Pete sold XOM stock. Tim Seymour is long AMZA, ACB.TO, APC, APH.TO, BABA, BAC, BX, C, CCJ, CLF, CMG, CRON, CSCO, CX, DAL, DPZ, DVYE, EEM, ERJ, EUFN, EWM, FB, FXI, GE, GILD, GM, GOOGL, GWPH, HAL, INTC, JD, LEAF, MAT, MCD, MO, MOS, MPEL, PAK, PHM, PYPL, RH, RL, SBUX, SQ, T, TIF, TWTR, UA, UAL, VALE, VIAB, VOD, X, XLE, XRT, YNDX, 700.HK. Tim is short IWM, RACE, SPY. Dan Nathan is short SMH, SPY. Dan sold SNAP, SPOT. Guy Adami is long CELG, EXAS, GDX, INTC. Guy Adami's wife, Linda Snow, works at Merck.
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6de0cdc312e8f621eb9b3e94fa45e098 | https://www.cnbc.com/2018/05/16/3m-downgraded-by-jefferies-due-to-rising-interest-rates-recession-fears.html | 3M downgraded by Jefferies due to rising interest rates, recession fears | 3M downgraded by Jefferies due to rising interest rates, recession fears
Evan Vucci | AP
A difficult year for 3M shareholders will not get better anytime soon, according to Jefferies.
The firm lowered its rating for the industrial company's shares to hold from buy, predicting its valuation will decline in the latter part of the economic cycle.
"We see less room for multiple expansion in a rising rate environment, and once recession risk moves to dominate the investor debate the forward P/E multiple likely compresses," analyst Laurence Alexander said in a note to clients Wednesday. "The risk/reward looks increasingly challenging at this point."
3M shares are underperforming the market this year. Its shares declined 14 percent year to date through Tuesday compared with the S&P 500's 1 percent return.
The company's stock is down 1.2 percent Wednesday after the report.
Alexander reduced the firm's price target to $220 from $250 for 3M shares, representing 9 percent upside from Tuesday's close.
The analyst predicts 3M will face "lumpiness" in its electronic display materials, drug delivery, consumer health care, energy and auto businesses this year and next year.
"3M's strength has been its consistent execution of a familiar playbook: a good recipe for compound growth across the cycle, but one that significantly reduces the chance for dramatic flare or a surprising late-cycle reacceleration," he said.
3M did not immediately respond to a request for comment.
Disclaimer
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6ba409ec2103b651de6bf2855b08e505 | https://www.cnbc.com/2018/05/16/amazon-alexa-exec-jim-freeman-joins-amazon-exec-departures.html | Amazon loses another key executive as it becomes a top target for poaching tech talent | Amazon loses another key executive as it becomes a top target for poaching tech talent
VIDEO0:5600:56Amazon loses another key executiveNews Videos
When Jim Freeman, the Alexa VP in charge of messaging products, told Amazon he's leaving for the German e-commerce company Zalando earlier this year, the higher-ups asked him to stay, according to a person familiar with the matter.
Freeman didn't budge, and in April he ended up joining the Berlin-based company.
Freeman, who first joined Amazon 9 years ago and previously spent a short time at Zalando, had a lot of support internally, as he oversaw the development of all Alexa messaging features, like audio and video calling. Previously, he also ran Amazon's entire video team, including Prime Video and Amazon Studios.
Freeman's departure is part of a recent wave of executive departures at Amazon. Even as Amazon enjoys unprecedented success and record-level stock prices, some of its senior executives are opting to leave. Smaller companies offer fresh opportunities and a relief from its high-intensity work culture, hiring experts say.
More than a dozen executives and senior managers have left Amazon over the past 10 months. Among them, Susan Harker, a VP responsible for global recruiting, took a leave of absence because of a family member's health issue, according to people familiar.
Other recent departures that have been previously reported include top executives like Prime boss Greg Greeley and marketplace chief Sebastian Gunningham, as well as lower-level execs like Gene Farrell, a VP at Amazon Web Services, and Tim Stone, a finance VP who joined Snap as CFO earlier in May. Mike George, former VP of Echo, Alexa, and the app store, retired last June after a 20 year-run at Amazon, but has rejoined the company, according to a person familiar.
In Freeman's case, this is his second run at Zalando. He had previously joined the company in 2016, only to return to Amazon six months later for personal reasons. The personal issue has been resolved in recent months, and so he insisted on returning to the German company, people familiar with the matter said.
In a statement, Amazon said, "It's simply incorrect to suggest that we have an executive retention issue. Amazon is the most attractive place to work in the US, according to LinkedIn, and we have nearly 95% retention among our Vice Presidents. For 20 years it's been the case that a handful of executives have come and gone — for personal or professional reasons — and that's true at any company. What's unique about Amazon is that many come back — we call them 'boomerangs'."
One tech investor, who declined to be identified due to his close work with Amazon, said some of the departures are driven by a desire to take on bigger roles.
Freeman, for example, is now running all of Zalando's engineering. Farrell, who left AWS to join Smartsheet, was able to be part of the company's recent IPO roadshow, an experience Amazon wouldn't have provided. Jamie Heywood, who was a director at Amazon, is now in charge of Uber's UK operations. In the case of Stone, the investor surmised he was likely excited about a "turnaround job" at Snap.
Professional recruiters point to two broader trends for the sudden uptick in the number of managers leaving: burnout after breakneck growth and stronger demand for Amazon executives from other companies.
Jim Herd, managing partner at the Seattle-based executive recruiting firm Herd Freed Hartz, said Amazon could be a tough place to be for a long time, as its work culture tends to be more fast-paced and high-pressure than some of its peers.
"When you go to Amazon, you're on a treadmill — it's really non-stop," Herd said. "It's not a place for everyone."
VIDEO1:3801:38Amazon pushes discounts for Prime shoppers at Whole FoodsSquawk Alley
At the same time, thanks to Amazon's exponential success in recent years, the demand for Amazon executives has grown significantly, Herd said. Now, 9 out of 10 of his clients pick Amazon as their most preferred poaching destination, he said.
And the higher Amazon's stock goes, the more companies are asking for Amazon executives to come help build a similar culture of growth. It is no coincidence that a lot of the departing executives went on to join later-stage startups, such as Airbnb, WeWork, and Uber, he said.
"In the '90s everybody wanted Microsoft executives. Now it's Amazon," Herd said.
One Silicon Valley recruiter, who declined to be identified due to his work with Amazon, said there's been more demand for Amazon executives in recent years following the breakout success of AWS and Alexa voice technology. Those two businesses have transformed Amazon's image from a simple online retailer to a more sophisticated tech company, stacked with talented engineers in emerging areas like machine learning and artificial intelligence, this person said.
"Amazon is now in so many areas that's relevant to so many people, it's become an obvious hunting ground for any client in the tech space," this person said.
As a result, Amazon executives are drawing lucrative offers worth millions of dollars, these people said. Case in point: Stone, Snap's new CFO, received a total compensation of $20 million — the equivalent of the salary for the 63rd highest paid CEO among the largest US companies last year, or the same amount as Microsoft CEO Satya Nadella.
But not everyone enjoys a big payday by leaving Amazon. Some people are forced to take a pay cut to go work at a smaller scale company, where they can exert more control over business decisions, said Max Hansen, CEO of recruiting firm Y Scouts.
He said Amazon has become so big — now with over 560,000 total employees — that it's almost impossible to make big decisions that really "move the needle." And for people that crave a more hands-on experience, the change comes with a cost.
"They're willing to take less money for a role that creates a bigger impact," Hansen said. "A lot of these people feel like they can't show their individuality at Amazon."
VIDEO0:4600:46Amazon has visited all 20 finalists for its new headquartersNews Videos
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92dd39764ea9e5fafe903e90e103b749 | https://www.cnbc.com/2018/05/16/asia-markets-dollar-us-bond-yields-stocks-and-earnings-in-focus.html | Asian shares close mixed as US yields edge higher; trade talks in focus | Asian shares close mixed as US yields edge higher; trade talks in focus
Asian stocks closed narrowly mixed on Thursday as the yield on the U.S. 10-year Treasury stayed above 3 percent. Investors also kept an eye on the second round of U.S.-China trade talks.
The rose 0.53 percent, or 121.14 points, to close at 22,838.37 in Tokyo, shrugging off weak core machinery orders — a leading indicator for capital expenditure — for the month of March. The broader Topix was higher by 0.45 percent, with its oil and insurance subindexes among the best-performing sectors.
Over in Seoul, the Kospi finished the day down 0.46 percent at 2,448.45. Technology shares were mixed, with index heavyweight Samsung Electronics easing 0.9 percent.
Hong Kong's shed 0.42 percent by 3:10 p.m. HK/SIN as banks and insurers slipped. Most sectors traded in negative territory before the market close, with property developers also weighing on the index, although the technology sector advanced.
That came after shares of Tencent got a boost after the tech giant reported first-quarter net profit rose 61 percent to 23.9 billion yuan ($3.66 billion), topping an average Thomson Reuters forecast of 17.5 billion yuan. Tencent stock jumped 4.34 percent by 3:00 p.m. HK/SIN.
On the mainland, the edged down by 0.48 percent to 3,154.24 and the Shenzhen composite eased 0.52 percent to end at 1,822.70.
Down Under, the S&P/ASX 200 finished the session lower by 0.21 percent at 6,094.30. The heavily weighted financials subindex declined 0.41 percent, dragging the index lower but paring steeper losses seen earlier. The materials and energy sectors, meanwhile, were among the sectors carving out gains.
MSCI's index of shares in Asia Pacific excluding Japan, which had tracked higher in the morning, slipped 0.23 percent in Asia afternoon trade.
The mostly sideways trade in Asia came after U.S. stocks closed higher on Wednesday, with retail sector stocks climbing following strong results from department store company Macy's. Of note, the small-cap Russell 2000 added 1 percent and finished at a record close.
The yield on the 10-year U.S. Treasury note rose to a fresh near seven-year high on Wednesday, surpassing the 3.1 percent level for the first time since Jul 8, 2011. The 10-year Treasury yield rose to 3.12 percent on Thursday.
Trade was also back in the picture as a second round of U.S.-China talks kicked off, this time taking place in Washington. Trade-related frictions had spooked markets earlier this year, with investors at the time concerned over the impact of tariffs on growth.
Meanwhile, President Donald Trump said on Wednesday that whether his planned meeting with North Korean leader Kim Jong Un goes through remained to be seen. Earlier, North Korea said it would rethink the June 12 summit if the U.S. insisted on denuclearization.
The uncertainty did not appear to have a major impact on markets in the region.
"I think investors are just going to hold on the sidelines and kind of watch this, see how it develops. I expect there to be a lot of this sort of political rhetoric leading into the summit. I don't think it's going to be a big investment thesis for the markets," Jack McIntyre, portfolio manager at Brandywine Global Investment Management, told CNBC's "Squawk Box."
Elsewhere, Italy's right-wing Lega party denied reports that it was seeking a 250 billion euro ($296 billion) debt write-off if it becomes part of a power-sharing deal with the anti-establishment 5-Star Movement. In reaction, the country's FTSE MIB fell 2.32 percent on Wednesday while Italian bond yields moved higher.
On Thursday, the euro extended losses to trade at $1.1801 at 2:59 p.m. HK/SIN. The common currency fell to a five-month low of $1.1763 in the previous session.
The dollar index, which tracks the U.S. currency against a basket of major currencies, was steady at 93.320 after rising to a five-month high of 93.632 overnight. Gains in the greenback in recent week come amid expectations that the Federal Reserve will be more hawkish than other central banks.
Against the yen, the dollar firmed to trade at 110.46 at 2:56 p.m. HK/SIN.
On the energy front, U.S. crude futures rose 0.27 percent to trade at $71.68 per barrel and Brent crude futures added 0.16 percent to trade at $79.41.
— CNBC's Thomas Franck and Silvia Amaro contributed to this report.
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2d4ea0890c9dcc1eabcb237cedaedd30 | https://www.cnbc.com/2018/05/16/bank-of-englands-broadbent-apologizes-for-menopausal-remark.html | Bank of England's Broadbent apologizes for 'menopausal' remark | Bank of England's Broadbent apologizes for 'menopausal' remark
Simon Dawson | Bloomberg via Getty Images
Bank of England Deputy Governor Ben Broadbent apologized on Wednesday for saying Britain's economy was going through a "menopausal" phase in a comment that attracted criticism and could revive concern about gender diversity at the bank.
"I'm sorry for my poor choice of language in an interview with the Telegraph yesterday and regret the offence caused," Broadbent said in a statement.
Broadbent, 53, had told the newspaper that years of poor productivity and weak wage growth meant Britain was going through a "menopausal" moment. The Telegraph did not publish the quote in full.
The ex-Goldman Sachs economist, among those tipped as a successor to BoE Governor Mark Carney who stands down next year, said in the interview that experts used the phrase to describe economies that were "past their peak and no longer so potent".
His comments attracted derision on social media.
"As reported I found them pretty offensive," economist Kate Barker, one of Broadbent's predecessors on the BoE's Monetary Policy Committee, said on Twitter.
Sarah Wollaston, a lawmaker of Prime Minister Theresa May's Conservative Party, described Broadbent's comments as "pejorative tosh".
"#Menopause only a problem if others try to sideline you because of ignorant prejudice," she tweeted.
Broadbent's comments are likely to put the relative lack of gender diversity in senior management back in the spotlight.
Last year lawmakers said they were disappointed by finance minister Philip Hammond's slow progress at encouraging greater diversity at the highest levels of the Bank.
There are only three women out of more than 20 officials who serve on the BoE's three major policy committees, appointed by the finance ministry.
In his apology, Broadbent said he had been trying to explain the word "climacteric", a term used by economic historians to describe a period of low productivity growth during the nineteenth century.
"Economic productivity is something which affects every one of us, of all ages and genders," he said.
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0b6053be1649b1f6a8307b611ac31374 | https://www.cnbc.com/2018/05/16/billionaire-david-tepper-reaches-deal-to-buy-nfls-carolina-panthers.html | Hedge fund billionaire David Tepper reaches deal to buy the Carolina Panthers | Hedge fund billionaire David Tepper reaches deal to buy the Carolina Panthers
Cam Newton #1 of the Carolina Panthers points to the crowd in the fourth quarter of their game against the San Francisco 49ers at Levi's Stadium on September 10, 2017 in Santa Clara, California.Ezra Shaw | Getty Images
Billionaire hedge fund manager David Tepper has reached a deal to buy the Carolina Panthers, the National Football League team announced Wednesday.
The deal, which has been reported to be worth a league-record $2.2 billion, is subject to NFL approval and is expected to close in July.
"I look forward to turning the stewardship of the Panthers over to David Tepper," Panthers founder Jerry Richardson said in a statement. "I have enjoyed getting to know him in this process and am confident that he will provide the organization with great leadership in both its football and community initiatives."
Richardson began shopping the team around after the league started an investigation into allegations of sexual and racial misconduct in the workplace.
Tepper, who runs Appaloosa Management, would have to sell his stake in the Pittsburgh Steelers, according to NFL rules. He has had a minority stake in that team since 2009.
"I am thrilled to have been selected to be the next owner of the Carolina Panthers," Tepper said in a statement.
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851bfac4595427d833c8e8527c368528 | https://www.cnbc.com/2018/05/16/cramer-remix-a-lot-of-the-negativity-in-the-market-is-bogus.html | VIDEO1:0401:04Cramer Remix: A lot of the negativity in the market is bogusMad Money with Jim Cramer
Sometimes, CNBC's Jim Cramer gets frustrated with how frequently stock market stories are framed as lose-lose situations for the bulls.
From the marketwide panic around the 10-year U.S. Treasury yield crossing 3 percent to worries about rising oil prices to buzz around a strengthening dollar, Cramer argued that a lot of the negative headlines are often just haphazard deterrents to investors who want to buy stocks.
"Should you sell stocks because the dollar hit a five-month high? Meh," the "Mad Money" host said on Wednesday.
"My whole point: it is so easy to scare you," Cramer continued. "It is so hard to set you at ease. I think stocks may be due for a pause — sure, we're up a lot — but it's only because they've run so much, not because of these often-bogus negative stories."
Pedestrians walking in front of Macy's in New York.Scott Mlyn | CNBC
After Cramer watched the stocks of Micron and Macy's spark what amounted to a broad-based rally on Wednesday, he knew he'd have to explain how this odd surge occurred.
Sometimes, he explained, big-picture worries about the bond market, rising oil prices or trade talks can sully market performance and put pressure on equities.
"Other times, though, there's a vacuum of information, a real dearth of 'what matters,' like we had today," Cramer said. "In this situation, we can actually care about individual companies and what they have to tell us, provided that these companies are important enough to their sectors that they can give us tremendous pin action," or affect the movements of related stocks.
That's exactly what happened with Micron and Macy's, Cramer argued.
John Rainey, PayPalDavid Paul Morris | Bloomberg | Getty Images
When PayPal became one of the first companies to let merchants accept cryptocurrencies, one major issue emerged, PayPal CFO John Rainey told CNBC on Wednesday.
"Because of the volatility of the cryptocurrencies," the merchants were seeing swings in crypto that threatened the viability of their businesses, Rainey told "Mad Money" host Jim Cramer.
"If you're a merchant and you have, let's say, a 10 percent margin on a product that you sell and you accept bitcoin, for example, and the very next day it moves 15 percent, you're now underwater on that transaction," Rainey said in the exclusive interview.
"So what happens, or what was happening, is they were immediately moving that to a more stable currency," the CFO said.
Rainey also explained to Cramer how PayPal is doubling down on the idea of helping the "unbanked" — people who don't use typical financial services — by chasing one key customer group.
Adam Selipsky, CEO, Tableau SoftwareScott Mlyn | CNBC
Tableau Software's seven-word mission statement is simple: "We help people see and understand data," the company's President and CEO, Adam Selipsky, told Cramer in a Wednesday interview.
Unsurprisingly, Tableau's latest product, Tableau Prep, does just that, slashing the time it takes to prepare data for analysis in half, Selipsky said.
"With Tableau Prep, we've taken that simple, intuitive, easy-to-use yet powerful Tableau formula and applied it from analytics over to data prep," the CEO said.
Preliminary data from analysts at Schwab, an investment management company that partners with Tableau, showed that the beta version of Tableau Prep was already cutting their work time.
"It's only [been] a few weeks, but the early results are showing that they're cutting 50 percent of the time out of data preparation," Selipsky said. "That's hours per week for an analyst. It's really exciting."
With the stocks of Lockheed Martin, Northrop Grumman and Raytheon all close to 10 percent off their 2018 highs, Cramer doubled down on his recommendation to own the defense plays.
"Here's the thing: we know Lockheed and Northrop Grumman and Raytheon are doing extremely well, and this is before the monster new defense budget even kicked in," Cramer said. "All three companies were fairly conservative about what this budget might mean for their business, which to me suggests that this stuff isn't necessarily baked into their stocks here."
Moreover, with the stocks trading at 17 and 18 times next year's earnings estimates, the "Mad Money" host argued that their stocks are incredibly cheap given their growth prospects.
"Bottom line? If you liked Lockheed Martin, Northrop Grumman and Raytheon before the quarters, you should like them even more down here," he said. "My favorite? Hey, look, I like Raytheon the most [thanks to] its white hot Patriot Missile program, but there's a solid case for owning all three of the big dogs right here."
In Cramer's lightning round, he flew through his take on callers' favorite stocks:
Foot Locker: "I think Foot Locker's OK. I like Nike even at a 52-week high, all-time high, because what I saw from … [our] chartist at RealMoney makes me feel very, very good about it."
Frontline: "I have never liked the very large crude carriers and I'm not going to change my mind right now. Boy, have people done poorly in those."
Disclosure: Cramer's charitable trust owns shares of PayPal and Raytheon.
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - VineQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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b00096208fb7a217a2c70683a3872513 | https://www.cnbc.com/2018/05/16/ford-to-resume-f-series-pickup-production.html | Ford to resume production of popular F-Series pickup | Ford to resume production of popular F-Series pickup
VIDEO3:4703:47Ford to restart production on popular F-150 pickupSquawk Box
Ford is resuming production of its F-Series pickup trucks, ending assembly line shut downs at two of its most important plants that have lasted more than a week.
Returning to full production is likely to take some time as the automaker has scrambled to re-establish manufacturing of critical components from a supplier. Production will first resume at its Dearborn, Michigan, facility on Friday. On Monday, its Kansas City and F-Series Super Duty truck production in Louisville, Kentucky, will go back online.
The automaker suspended production of the F-Series last week due to a lack of critical components from its supplier Meridian Lightweight Technologies. Meridian's plant in Eaton Rapids, Michigan, suffered extensive damage after an explosion and fire in early May.Ford, along with BMW, Mercedes-Benz and General Motors were forced to suspend or curb production at several U.S. plants while looking for an alternate source for components.It's estimated Ford lost the production of 70,000 to 80,000 F-150 pickups since shutting down assembly lines at plants in Kansas City and Dearborn. The company also suspended the building of its F-Series Super Duty trucks in Louisville.
Ford has said its financial results for the second quarter will take a hit, though the exact cost remains to be seen. Meanwhile, the automaker has reaffirmed its guidance for full-year earnings.With F-Series inventory of more than 80 days, Ford dealers have not seen a big drop in the number of pickups in stock while production was stopped. Ford expects to make up the lost inventory in future months by running extra shifts.
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585ca1eb2099868587f5348927d6d798 | https://www.cnbc.com/2018/05/16/forex-dollar-in-focus-euro-drops-on-italian-political-uncertainty.html | Dollar rises to 4-month high vs yen on higher US Treasury yields | Dollar rises to 4-month high vs yen on higher US Treasury yields
Getty Images
The dollar climbed to a four-month peak against the yen on Thursday, bolstered by the rise in U.S. Treasury yields that suggests a more upbeat outlook for the world's largest economy. U.S. benchmark 10-year yields hit a high of 3.122 percent, the highest in nearly seven years.
"The upside pressure on the dollar has been dramatic as the dollar has not declined consistently in a period which should be seeing dollar weakness," John Taylor, president and founder of research firm Taylor Global Vision in New York, said.
Rising yields reflect continued optimism about the U.S. economy, reinforcing expectations that the Federal Reserve would raise borrowing rates at least two more times this year.
The dollar rose to its strongest versus the Japanese since Jan. 23 at 110.80 yen. It was last at 110.76, up 0.34 percent on the day. The dollar index rose 0.11 percent to 93.49, below its 2018 high of 93.632.
The euro, meanwhile, fell to near a five-month low against the dollar on Thursday on concerns about the demands of populist parties likely to form Italy's next government.
Italy's anti-establishment 5-Star Movement and the anti-immigrant League, which are working to draft a coalition program, may ask the European Central Bank to forgive 250 billion euros of debt. But broader Italian markets held up better on Thursday as investors played down the broader impact on euro zone political stability and questioned whether the Italian parties would really follow through on such plans.
The euro slipped to $1.1792, just above the $1.1763 2018 low it hit on Wednesday. The euro has slumped six cents from more than $1.24 in three weeks after a huge dollar rally.
Investors are betting U.S. interest rates will need to rise further, while other central banks are postponing monetary tightening. That has forced investors who took big positions against the dollar anticipating a fall in 2018 to unwind and cover their positions, pushing the greenback even higher.
"This sense of a market that is not particularly well prepared for a euro decline is supported by the benign valuations still evident in the pricing of six-month and 12-month implied volatility," BNY Mellon analysts said in a note, referring to prices of a measure of expected swings in the value of the euro.
Sterling gave up earlier gains after the UK government dismissed a media report that Britain wanted to stay in the European Union's customs union after Brexit.
VIDEO4:1104:11Three ways to trade the soaring dollarTrading Nation
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7f07f0efd1604e239ec0066ec65b1e06 | https://www.cnbc.com/2018/05/16/gold-getting-hammered-as-dollar-soars-could-plunge-another-7-percent.html | Gold is getting hammered as the dollar soars, and it could plunge another 7% from here | Gold is getting hammered as the dollar soars, and it could plunge another 7% from here
VIDEO1:0701:07Gold is getting hammered as the dollar soars. Here’s what that meansTrading Nation
Gold is losing its luster.
The metal has fallen 5 percent in the last three months as the U.S. dollar has gained ground, in turn depressing gold prices. The commodity hit a fresh 2018 low Wednesday.
Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management, told CNBC's "Trading Nation" on Wednesday that the bottom is nowhere near in for gold. Here are his reasons why.
• Gold has fallen as U.S. interest rates and the U.S. dollar have risen meaningfully in recent months. The metal is typically a story about yield; rising interest rates tend to make gold (a nonyielding, dollar-denominated asset) less attractive.
• The benchmark 10-year yield's breach of the 3 percent level for the first time in four years fueled this move. • Gold is usually more so a hedge or a speculative instrument, rather than an investment. At this point, if investors see bond yields rallying further, toward 3.25 percent, gold will likely continue its descent. • The only thing to support gold here would be some kind of geopolitical event, which could spur investors flocking to gold. Without that kind of catalyst, gold is likely to see a move down to $1,200 per ounce, or 7 percent below current levels.
Disclaimer
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39e0b94153657f5c37b483ef742e8bb1 | https://www.cnbc.com/2018/05/16/gold-prices-steady-as-dollar-hovers-below-2018-peak.html | Gold flat after hitting 2018 low as dollar, Treasuries firm | Gold flat after hitting 2018 low as dollar, Treasuries firm
Getty Images
Gold was flat after sliding to a fresh 2018 low on Thursday as another rise in U.S. bond yields and concerns over political risk in Italy held the dollar index near its 2018 peak.
The precious metal has fallen more than 2 percent this week on gains in the U.S. currency and a rise in U.S. 10-year Treasury yields to seven-year highs. Higher yields increase the opportunity cost of holding non-yielding assets such as bullion.
But gold got some support from geopolitical strife in North Korea.
Spot gold was flat at $1,290.75 per ounce by 3:55 p.m. ET, off an earlier 4-1/2-month low of $1,285.41. U.S. gold futures for June delivery settled down $2.10 at $1,289.40.
The dollar has climbed nearly 4 percent this quarter on expectations the U.S. Federal Reserve will lift U.S. interest rates further this year to curb inflation, at a time when other central banks are still keeping monetary policy loose.
"The dollar and the interest rates are what's really driving gold," said Chris Gaffney, president of world markets at Everbank. "Gold has further down to go, because the dollar has room to go higher."
The euro remains under pressure, hovering near a five-month low on concerns that political developments in Italy could cause wider disruption in the common currency bloc.
Political uncertainty arising out of North Korea after Pyongyang threatened to pull out of a meeting with the United States was likely to limit downside for gold, analysts said.
Market watchers, unsure if the U.S. Federal Reserve will be able to aggressively hike rates and concerned about political uncertainty, lent support to gold prices, said Ryan McKay, commodity strategist at TD Securities.
But gold "still remains vulnerable to the prevailing dollar and rate headwinds," INTL FCStone said in a note.
From a technical perspective, gold prices were looking vulnerable to further losses after breaking below key chart levels this week, according to analysts who study past price moves to determine the future direction of trade.
"Gold has eroded key support, namely the 200-day moving average, the $1,302.74 March low and the 50 percent retracement (of the December-to-January rally)," Commerzbank said in a note on technicals. "We have been forced to neutralize our outlook as the market is now on the defensive."
Meanwhile, silver increased 0.55 percent to $16.44. Platinum was up 0.33 percent at $890.40, off an earlier five-month low of $879, while palladium declined 0.77 percent to $975.72.
VIDEO1:0701:07Gold is getting hammered as the dollar soars. Here’s what that meansTrading Nation
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c29a39445ef0bf8c945d53e32463a1bb | https://www.cnbc.com/2018/05/16/hedge-funds-are-buying-these-stocks--including-chipotle.html | Here are the stocks the top-performing hedge funds are buying — including Chipotle | Here are the stocks the top-performing hedge funds are buying — including Chipotle
Chipotle restaurant workers fill orders for customers in Miami, Florida.Getty Images
Well-known hedge-fund managers such as David Tepper and Dan Loeb get much of the attention, but there are lower-profile stars that are performing even better and beating the market.
CNBC used Symmetric.io, a top hedge-fund tracking firm, to find the best under-the-radar managers and which stocks they recently bought, according to filings.
Four times a year, hedge funds file their long positions with the Securities and Exchange Commission, and the information is released to the public 45 days after each quarter ends.
VIDEO1:0101:01Hedge funds pile into Facebook, sell Apple sharesNews Videos
With the recently released March quarter filing data, Symmetric.io graded the stock-picking ability of nearly 1,000 hedge funds in its database with a proprietary indicator called StockAlpha. It is derived by comparing the performance of equities in the fund with that of a sector ETF.
Here are the top five stock-picking hedge funds measured by StockAlpha, many of them run by managers who are not household names.
Some investors focus on the stocks in which funds are taking new positions because it may mean the managers see an overlooked opportunity.
Here are some new stock additions from the top five stock pickers.
The top-performing hedge funds added positions in Chipotle and The New York Times in the March quarter.
VIDEO3:1603:16Hedge funds and the FAANG tradeSquawk Alley
Disclaimer
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bc24b376136f107a60ff58bfb0fa41e4 | https://www.cnbc.com/2018/05/16/hkma-buys-hk9-point-5-billion-in-us-trade-as-hong-kong-currency-weakens.html | Hong Kong Monetary Authority intervenes as its dollar weakens | Hong Kong Monetary Authority intervenes as its dollar weakens
The Hong Kong Monetary Authority is displayed outside Two International Finance Centre in Hong Kong on June 19, 2013.Jerome Favre | Bloomberg | Getty Images
The Hong Kong Monetary Authority (HKMA) stepped into the currency market and bought another HK$4.710 billion ($600 million) in Hong Kong dollars on Wednesday U.S. time as the local currency hit the weaker end of its trading range.
That was in addition to HK$4.789 billion in Hong Kong dollars that the city's de facto central bank bought earlier during New York trading hours.
Reuters data shows the latest intervention will reduce the forecast aggregate balance — the sum of balances on clearing accounts maintained by banks with the authority — to HK$117.431 billion on May 18, when the withdrawn funds will be settled.
These HKMA interventions are the first since mid-April. It has bought a total of HK$11.069 billion this week.
The Hong Kong dollar is pegged at 7.8 to the U.S. dollar but can trade between 7.75 and 7.85. Under the currency peg, the HKMA is obliged to intervene when the Hong Kong dollar hits 7.75 or 7.85 to keep the band intact.
The currency traded at 7.8496 against the U.S. dollar at 0230 GMT.
HKMA Chief Executive Norman Chan said on Tuesday that capital flowing out from the Hong Kong dollar will allow the Hong Kong dollar's interest rates to normalise eventually, like the U.S. dollar.
Last month, the HKMA said it had confidence in the local currency's peg to the U.S. dollar and will stay vigilant to ensure the former British colony's monetary and financial stability.
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25d069400036cf86a79aaa14929f29b9 | https://www.cnbc.com/2018/05/16/investing-in-saudi-arabia-new-ftse-russell-etf-for-investment-in-the-fast-changing-economy.html | New Saudi Arabia-focused ETF aims to woo international investors | New Saudi Arabia-focused ETF aims to woo international investors
VIDEO2:5602:56FTSE Russell and ADS Investment Solutions launch Saudi Arabia indexCapital Connection
Saudi Arabia is transforming economically as the kingdom moves from its traditional heavy reliance on oil, but investors have few avenues to invest in the booming market.
"There aren't many channels of investments towards the capital market in Saudi Arabia...so international investors are really asking for exposure to Saudi Arabia — no stock picking, just some ETFs or an index to go in passively and through a systematic strategy," said Ryan Lemand, senior executive officer at ADS Investment Solutions.
To meet this gap, the United Arab Emirates financial firm launched an exchange-traded fund (ETF) Wednesday which will be listed on the Abu Dhabi Securities Exchange. The FTSE Ads Custom Saudi Minimum Variance Index was developed in collaboration with FTSE Russell.
"Saudi Arabia today is reforming, it is changing and generally investors who look at emerging markets, they look at emerging markets that are reforming, not the static emerging markets," Lemand told CNBC's "Capital Connection." "Today, Saudi Arabia is not only changing, it is literally transforming."
In 2016, Saudi Arabia's government unveiled a long-term economic blueprint for life in a low-oil-price world.
Titled "Saudi Vision 2030," the plan includes regulatory, budget and policy changes that will be implemented in the hope of making the kingdom less reliant on crude. It aims to build a "prosperous and sustainable economic future" for the kingdom.
In March, index compiler FTSE Russell decided to add Saudi Arabia to its emerging market index starting in March 2019, and index giant MSCI will decide whether to take the same action in June.
CNBC's Matt Clinch and Reuters contributed to this story.
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ef65076879bab2d9ecc2d869a2ea0594 | https://www.cnbc.com/2018/05/16/jj-ceo-warns-of-unintended-consequences-of-trumps-drug-price-plan.html | J&J CEO warns of 'unintended consequences' of Trump's drug-price reduction plan | J&J CEO warns of 'unintended consequences' of Trump's drug-price reduction plan
VIDEO2:3702:37Johnson & Johnson CEO Alex Gorsky on revamping baby productsSquawk Box
Johnson & Johnson Chairman and CEO Alex Gorsky told CNBC on Wednesday he expects the company's pharmaceutical business will be able to successfully navigate any changes in health care as a result of President Donald Trump's new plan aimed a reducing drug prices.
At the same time, Gorsky warned the Trump administration to be careful not to impose "unintended consequences" on the U.S. health-care system, which is incredibly complex. He did not elaborate.
"We know there are going to be changes in the pricing system. That's why we have to continually innovate," Gorsky said in a "Squawk Box" interview with CNBC's Meg Tirrell. He added that J&J, whose pharma unit accounted for 47 percent of 2017 net sales, is still analyzing Trump's plan, which was unveiled on Friday.
Trump's plan, among other changes, will consider an alternative system for buying Medicare Part B drugs, including many cancer treatments and infused biotech drugs.
J&J's top-selling arthritis drug Remicade, which is covered under Part B, could be affected by Trump's plan. Gorsky said the company has looked at its entire portfolio and it's reinventing it. He said two other drugs — Simponi and Stelara, designed to treat autoimmune diseases — have actually exceeded sales of Remicade.
Earlier Wednesday, J&J announced it would relaunch its baby-care products, which saw a 20 percent sales decline since 2011 to $1.9 billion.
Speaking just hours before the company's every-other-year consumer products and medical devices analyst meeting, Gorsky said J&J is trying to be more like a "start-up" with its baby brand, focusing on the changing needs of "millennial moms," who favor baby products with more natural ingredients.
"We realize that over the past few years that we probably got a little bit behind the curve," he said. "But what you're going to hear about today is that we totally reformulated the brand where we're changing and making sure we're using more natural ingredients."
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9c52aa722e541d1ca5d1f7c10ab60809 | https://www.cnbc.com/2018/05/16/mark-duplass.html | Mark Duplass | Mark Duplass
Mark Duplass is an award-winning actor, filmmaker and producer. He and his brother Jay first gained recognition in the early 2000's for writing, directing and producing several acclaimed independent and studio films, including The Puffy Chair, Baghead, Cyrus, and Jeff, Who Lives at Home. On the television side, Mark and Jay have created two critically acclaimed television series for HBO: Togetherness (in which Mark also starred) and the anthology series Room 104.
Notable producer credits include the the Netflix documentary series Wild Wild Country and the HBO animated series Animals, as well as the feature films Safety Not Guaranteed (in which Mark also starred), The Skeleton Twins, and Tangerine.
As an actor, Mark has appeared in a wide range of film and television projects. From 2009 to 2015, he was a series regular on the hit FX comedy series The League. He has also had recurring roles in Hulu's The Mindy Project, National Geographic's Manhunt, and the upcoming season of Amazon Studios' Goliath. Notable on-screen feature film credits include: Tully, Blue Jay, The One I Love, Safety Not Guaranteed, Your Sister's Sister, and Humpday.
In May 2018, Mark and Jay published their first book, LIKE BROTHERS (via Ballantine Books), which examines their lifelong personal and professional partnership.
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409ca1cff2505a2836b5a0829b904c9b | https://www.cnbc.com/2018/05/16/market-illegal-sports-betting-in-us-not-really-150-billion-business.html | Market for illegal sports betting in US is not really a $150 billion business | Market for illegal sports betting in US is not really a $150 billion business
The field heads toward the first turn during the 144th running of the Kentucky Derby at Churchill Downs on May 5, 2018 in Louisville, Kentucky.Getty Images
The Supreme Court on May 14 struck down a 25-year federal ban on sports betting outside of Nevada.
The big question on many minds – particular state officials and companies like MGM Resorts and DraftKings looking to cash in – is how much money is at stake. Many of the articles on the decision cite the same eye-popping figure: Americans wager an estimated US$150 billion in illegal sports bets every year.
As a macro economist, I am used to dealing with big numbers. Still, $150 billion struck me as much too high. To put it in perspective, that's 14 times more than Americans spend going to the movies, twice as much as they put into grooming and feeding their pets and about the same as they pay for fruits, vegetables and dairy products.
More from the Conversation: War on fake news could be won with the help of behavioral scienceHas a deluge of TV gambling ads made Britain a nation of problem punters?Tax law's 'opportunity zones' won't create opportunities for the people who need it most
The figure comes from the American Gaming Association, which represents the U.S. casino industry and works to reduce restrictions on gambling. It says it based this number on a 1999 government estimate of about $80 billion in illegal sports betting. The group, which describes this as "the most conservative estimate," then adjusted it to 2017 dollars using GDP growth.
I'm not the first to find fault with these figures. A 2014 article in Slate questioned an even higher estimate, $380 billion, drawn from the same report. An examination of the underlying study showed that such estimates were not based on serious research.
While the figure has no real basis, it does have real impact. Numerous states need more tax revenue. If the potential dollars are big enough, then many states will rush to allow sports betting – as almost 20 are already doing, including New Jersey, which was behind the lawsuit that resulted in the high court ruling.
As I know from my work in economics, there are better ways to make estimates than pulling numbers out of thin air.
The first thing you do in such cases is look for a real-world example. In this case, data from the U.K., which has allowed sports gambling for decades, with thousands of betting parlors offering odds on everything from Premier League matches to when royal babies are born.
The U.K.'s Gambling Commission tracks betting statistics and issues an annual report. The one released in January shows that Brits placed about 10 billion pounds in bets in the latest fiscal year.
To get a comparable estimate for the U.S., that figure needs to be adjusted by population and currency. The U.K. has only about 66 million people, compared with 327 million in the U.S. And the pound was worth $1.36 on May 14.
After making both adjustments, this suggests that if people in the U.S. are allowed to make bets at the same rate as in the U.K., the size of the industry would be about $67 billion a year. While enormous, that's a far cry from $150 billion.
Will legal sports gambling be big business? Yes, but not as big as its proponents want you to believe.
Commentary by Jay L. Zagorsky, an Economist and Research Scientist at The Ohio State University. He is also a contributor at The Conversation, an independent source of news and views from the academic and research community. Follow him on Twitter @prof_jay_z.
For more insight from CNBC contributors, follow @CNBCopinion on Twitter.
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c1dff22b298ea0bdc04a3f635beef91b | https://www.cnbc.com/2018/05/16/marvel-comics-legend-stan-lee-files-1-billion-suit-over-theft-of-image-rights.html | Marvel Comics legend Stan Lee files $1 billion suit over theft of image rights | Marvel Comics legend Stan Lee files $1 billion suit over theft of image rights
A still from 'The Amazing Spider-Man 2'.Source: Marvel
The man who co-created Spider-Man, the Hulk and the X-Men has filed a $1 billion suit against a company he co-founded in 2001.
Stan Lee, a former editor-in-chief at Marvel Comics, is alleging that his name and likeness were taken fraudulently so that a company called "Pow Entertainment" could be sold to another firm in China.
The lawsuit, filed Tuesday in state Superior Court in Los Angeles, says the defendants "forged or fraudulently obtained a signature from Lee" as part of the scheme.
VIDEO3:2403:24Stan Lee: Special effects revitalized comicsClosing Bell
Lee claims that co-founders of Pow, Shane Duffy and Gill Champion, used deception to make him sign over his name, image and likeness on a wholly exclusive basis.
The 95-year-old's signature was either forged, imposed from another document or induced by a bait-and-switch tactic where Lee thought he was signing another contract due to his failing eyesight, according to the lawsuit.
A promotion image from Marvel's 2018 hit "The Black Panther".Source: Marvel
Camsing International, the Chinese firm that bought Pow, says on its website that in October, it had "completed the acquisition of POW! Entertainment founded by Stan Lee — Father of Marvel."
Lee added that the pair, along with former business partner Jerardo Olivarez, took advantage of his ill health and his "devastation" following the death of his wife.
In April, Lee issued a separate suit against Olivarez claiming that his former partner had transferred $4.6 million out of his bank account without authorization. He also claimed Olivarez was carrying out bogus schemes to enrich himself.
Pow Entertainment did not immediately respond to a CNBC request for comment from Duffy and Champion; Olivarez could not be located for comment.
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ad9cdba61ea0fec67bc869f748c80056 | https://www.cnbc.com/2018/05/16/pennsylvania-primary-results-women-favored-to-win-several-house-seats.html | Women have a good chance to win several House seats in Pennsylvania — a state represented by all men | Women have a good chance to win several House seats in Pennsylvania — a state represented by all men
Chrissy Houlahan for Congress.Source: Chriss Houlahan for Congress
More women are running for Congress this year than ever before — and they saw encouraging results in battleground Pennsylvania's primaries.
After Tuesday's elections, at least three women appear to be favorites in November's House races. No women currently represent the swing state in the House or Senate.
The results reflect a broader trend in this year's midterm elections: 385 women have filed to run for House seats, shattering the previous record of 298 set in 2012, according to the Center for American Women and Politics at Rutgers University. Women currently hold about 20 percent of the 535 House and Senate seats, but November's results could bring Congress a little closer to reflecting the broader American population.
Women projected to win Tuesday's primaries in Pennsylvania will play a major role in the battle for control of the House in November. Democratic women will run in several GOP-held districts the party aims to win as it tries to take a House majority.
Some of those candidates will get a boost from a new congressional map that made several districts more favorable to Democrats. The state Supreme Court threw out Republican-drawn congressional districts earlier this year, over objections from the state GOP.
PA 5th District: Attorney Mary Gay Scanlon won the Democratic primary for Pennsylvania's 5th District. She will face Republican Pearl Kim, a former state prosecutor who ran unopposed Tuesday. Scanlon enters as a favorite to win the general election, which will not feature an incumbent. GOP Rep. Pat Meehan resigned following the revelation of a taxpayer-funded settlement of a staffer's sexual harassment claim against him. The Cook Political Report's Partisan Voter Index, which gauges how areas voted in recent presidential elections relative to the country as a whole, rates the redrawn 5th District as "D+13." Cook, a nonpartisan site, lists the seat as "likely Democratic." PA 6th District: Chrissy Houlahan, a businesswoman who served in the Air Force Reserve, ran unopposed to win the Democratic nomination in the state's 6th District. She will run against GOP nominee Greg McCauley, an attorney. The race also lacks an incumbent after Republican Rep. Ryan Costello declined to run for re-election. The redrawn district is a "D+2" area, according to Cook's PVI. The election analysis site considers Houlahan the favorite, rating the seat "likely Democratic." PA 7th District: Former Allentown Solicitor Susan Wild won a heated Democratic primary for the 7th District. She is expected to beat Northampton County District Attorney John Morganelli, whom many Democrats considered too far to the right, and Greg Edwards, a pastor endorsed by Sen. Bernie Sanders, I-Vt. Marty Nothstein, a Lehigh County commissioner and former Olympic cyclist, declared victory Tuesday night in the district's GOP primary amid a tight race. In the 7th District, Democrats also got a boost from the new congressional map. It is a "D+1" seat now, according to Cook's PVI. Republican Rep. Charlie Dent, considered a moderate, recently resigned from his seat. Cook rates it as a district that leans Democratic, while another nonpartisan handicapper, Sabato's Crystal Ball, considers it a toss-up. PA 4th District: State Rep. Madeleine Dean won the Democratic primary for the 4th District. Businessman Dan David ran uncontested in the GOP primary. Dean appears to have a good chance of breaking up Pennsylvania's all-male congressional delegation. Election analysis sites rate the 4th District as a solidly Democratic seat.
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7d2723779422fb8021fc552648df8abc | https://www.cnbc.com/2018/05/16/rupiah-rupee-and-philippine-peso-could-face-more-pain-as-rates-rise.html | More pain could be in the works for the Indian rupee and Indonesian rupiah | More pain could be in the works for the Indian rupee and Indonesian rupiah
VIDEO1:1301:13Japan's weaker Q1 growth showed a 'pullback' in consumptionSquawk Box Asia
Emerging market currencies are likely to feel more pressure amid the move higher in U.S. bond yields, a top Deutsche Bank economist said on Wednesday.
"In a rising global interest rate environment, those countries with current account deficits that have relied on fixed income capital inflows to finance those deficits, and that's Indonesia in spades, are going to find it more difficult," Michael Spencer, Asia Pacific chief economist at Deutsche Bank, told CNBC's Nancy Hungerford.
The Indonesian rupiah, and Indian rupee have been among the weakest currencies in Asia for the past five or six months for that reason, he said.
Emerging market currencies have come under pressure this year, with the rupiah down about 4 percent against the greenback so far. On Wednesday, the currency dropped to its lowest levels since October 2015, last trading at 14,105 to the dollar.
"As U.S. rates continue to rise, that's going to put more and more pressure on the rupiah, the peso and the rupee," Spencer added.
That comes amid the broader move higher in U.S. yields: The yield on the benchmark 10-year U.S. Treasury note surged above the 3 percent level in the last session to 3.091 percent, its highest level since 2011.
Meanwhile, Spencer said higher inflation seen in emerging markets, notably Indonesia and the Philippines, coupled with weaker currencies would compel central banks there to raise interest rates.
Indonesia's central bank is expected to announce its decision on interest rates on Thursday. Reuters reported that 13 out of 21 economists it polled had indicated that Bank Indonesia would raise the seven-day reverse repo rate by 25 basis points to 4.5 percent.
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744044f22bce61bcc77f74a1490edb82 | https://www.cnbc.com/2018/05/16/stat-about-wall-streets-fear-gauge-sums-up-new-era-of-volatility.html | A striking stat about Wall Street’s ‘fear gauge’ sums up the new era of volatility | A striking stat about Wall Street’s ‘fear gauge’ sums up the new era of volatility
VIDEO4:1904:19Is elevated volatility here to stay?Trading Nation
Don't call it a comeback. The Cboe Volatility Index, considered Wall Street's "fear gauge" as a measure of swings expected in the market, has roared back this year after many months of muted moves. The index, commonly referred to as the VIX, surged as high as 50 earlier this year before trading generally between the 15 and 25 levels. While that range is just about in line with the index's long-term average, it's a stunning departure from recent years. According to a CNBC analysis, the VIX's average level this year is 17.11; that's higher than the average for all of 2015 (16.68), 2016 (15.84) and 2017 (11.10).
The VIX's average since 1995 is 21, said Dennis Davitt, portfolio manager and partner at Harvest Volatility Management.
Of course, we're coming off historically low levels, but that says a lot about what market watchers are calling a relatively new era of volatility after such a long period of historically quiet market moves. "The anomaly that we saw in 2016 and 2017 was the really low VIX. So the tail-risk event, or the black swan event, was a slow-motion car crash of 2017, where we saw the VIX trading at 9," said Davitt. "So moving out of that extremely left-tail, low vol event into what is a more normal market is going to feel like the market has suddenly become significantly more volatile."
Davitt recommended that investors generally should stay away from incorporating leverage into their portfolios. He pointed specifically to the demise of a short volatility product, the XIV, which lost 80 percent in early February when the VIX shot higher. Other strategists have pointed out that volatility has picked up across other asset classes, as well. "We are seeing a pickup in volatility in the Treasury market, and in the currency market," said Matt Maley, equity strategist at Miller Tabak, adding that when that kind of volatility gains momentum, it usually bleeds over in the stock market eventually.
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9762a72b936ff2ca05b17f7aeab1b972 | https://www.cnbc.com/2018/05/16/stocks-making-the-biggest-moves-premarket-jnj-sbux-mmm-chdn-abax-roku-more.html | Stocks making the biggest moves premarket: JNJ, SBUX, MMM, CHDN, ABAX, ROKU & more | Stocks making the biggest moves premarket: JNJ, SBUX, MMM, CHDN, ABAX, ROKU & more
Check out the companies making headlines before the bell:
Johnson & Johnson – J&J is revamping its iconic baby products line, putting more emphasis on natural ingredients. The company made the announcement ahead of its annual analyst day and said it is confident the move will reverse several years of declining sales of those products.
Starbucks – The coffee chain announced an acceleration of its net new store growth in China to 600 per year. The announcement was made at the company's first-ever China investment conference. Starbucks is hoping to triple its China revenue by 2022.
3M – Jefferies downgraded 3M to "hold" from "buy" and cut its price target to $220 per share from $250. Jefferies considers 3M to be among the companies on the wrong side of the inflation dynamic and lack structural tailwinds to drive the stock higher.
Churchill Downs – The operator of the iconic Kentucky race track announced an agreement with Golden Nugget Atlantic City to enter the New Jersey online gaming and sports betting markets.
Abaxis – Animal health company Zoetis will buy the maker of veterinary diagnostic instruments for $1.9 billion in cash, or $83 per share. The price represents a premium of about 16 percent over Tuesday's closing price for Abaxis.
Roku – The maker of video streaming devices suffered a multi-hour outage Tuesday, with the devices displaying FBI warnings instead of Netflix and YouTube. Roku said service was restored as of midnight Eastern Time last night.
Micron Technology – RBC Capital began coverage of the chipmaker with an "outperform" rating, saying it offers a unique way to gain exposure to memory chip markets at an attractive price.
Urban Outfitters – The apparel retailer's stock was upgraded to "neutral" from "sell" at MKM partners, which notes an improved product assortment and reduced promotional activity.
Party City – The retailer of party supplies announced a secondary offering of 12 million shares. The stock is being sold by a major Party City shareholder, and the company will receive no proceeds from the sale.
TripAdvisor – The travel website operator was downgraded to "sell" from "neutral" at Guggenheim Securities, noting pressure on margins as well as an increasingly competitive environment.
Novartis – Novartis said its top lawyer Felix Ehrat will depart the drugmaker, in the wake of his involvement in the $1.2 million contract the firm struck with President Trump's personal attorney Michael Cohen.
Yum Brands – Yum's Pizza Hut unit will become the largest pizza chain in Latin America and the Caribbean, after signing a franchise agreement with Spain's Telepizza Group.
Amazon.com – Amazon implemented new discounts at its Whole Foods unit for members of its Prime service, taking 10 percent off already-discounted items, and cutting prices on certain items throughout the store each week.
Teva Pharmaceutical – Berkshire Hathaway more than doubled its investment in Teva, according to the latest 13-F filing by Warren Buffett's firm. Berkshire owned 40.5 million shares in the generic drugmaker as of the end of the first quarter, up from 18.9 million three months earlier.
21st Century Fox – Fox settled lawsuits with 18 former employees of the Fox News Channel, who had sued over alleged racial and gender discrimination.
Automatic Data Processing — Activist hedge funds D.E. Shaw and Sachem Head Capital Management both took small stakes in the payroll processor during the first quarter, according to their quarterly Securities and Exchange Commission 13-F filings. The Wall Street Journal reports the two have not yet decided whether to push for changes at the company.
T. Rowe Price — The stock was upgraded to "outperform" from "neutral" at Credit Suisse, which cites rising organic growth as well as better expense control at the investment firm.
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1f61b57d51799b1a85dca6fc7e48ee66 | https://www.cnbc.com/2018/05/16/the-uaes-largest-fuel-distributor-adnoc-distribution-says-it-can-help-transform-the-region.html | The UAE's largest fuel distributor, ADNOC Distribution, says it can help transform the region | The UAE's largest fuel distributor, ADNOC Distribution, says it can help transform the region
VIDEO0:0000:00ADNOC Distribution: We have 'good foundation for the future'Capital Connection
ADNOC Distribution, the largest fuel and convenience retailer in the United Arab Emirates (UAE), can play a role in the region's economic transformation, its deputy chief executive told CNBC Wednesday.
"We gain and we succeed through the investment, not just of ADNOC, but across the UAE region and I think it's very good for the region and the volume and margin growth opportunities for the future," John Carey told CNBC's Hadley Gamble.
"Our job within ADNOC is very clear, to deliver on the promises we made to our investors, we have brought foreign investment into the region, building that credibility, building that position, and delivering the results like we've done in the first quarter, that clearly is our role," he said.
Carey's comments come after ADNOC Distribution reported Wednesday a 12.1 percent rise in net profit for its first quarter, from the same period a year ago.
Net profit came in at 542.2 million UAE dirhams ($147.6 million) for the first quarter, while earnings before interest, tax, depreciation and amortization (EBITDA) rose 24.9 percent year-on-year to 702.8 million UAE dirhams.
ADNOC distribution service station pumps with logo in daylight.ADNOC
ADNOC Distribution's deputy CEO said the latest earnings would allow the company to invest and expand.
"Based on the first-quarter results, a strong set of financial results, it gives us a really good foundation for the future," Carey said.
ADNOC Distribution has 360 fuel retail sites in the UAE and 235 convenience stores, giving it a 67 percent retail market share. In April, the company secured a trade license to operate in Saudi Arabia.
Carey said the company was "investing heavily" in the technology it uses and the customer experience, including a 100 million UAE dirham investment in technology at its stations.
"We just opened a partnership with Géant (an UAE-based retailer) in our convenience store and we talked about delivering three new stations in Dubai this year," he said.
ADNOC Distribution manages its parent company's — the Abu Dhabi National Oil Company — downstream operations (the processing and distribution of crude oil and gas products).
At the weekend, the CEO of parent group ADNOC unveiled plans to invest $45 billion over the next five years to establish a leading role in the global downstream sector.
"ADNOC continues to be focused on upstream, yet this time around ADNOC will expand its business focus into downstream by creating many multi-billion dollar opportunities in the downstream. We see a huge growth opportunity in the downstream market," Sultan Ahmed Al Jaber told CNBC's Hadley Gamble Sunday during an investment forum hosted by the company in Abu Dhabi.
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08bd988dd5ed1913f12333aa1cc0d82d | https://www.cnbc.com/2018/05/16/trump-investigation-fbi-interviewed-australian-ambassador-in-2016.html | FBI held secret interview with Australian ambassador in 2016 as part of Trump investigation | FBI held secret interview with Australian ambassador in 2016 as part of Trump investigation
The government of Australia in 2016 allowed one of its ambassadors to be interviewed by the FBI as part of the agency's investigation into alleged ties between Russia and the Trump presidential campaign, the New York Times reported on Wednesday.
The secret meeting, which marked a break with diplomatic protocol, was held in London between FBI agents and Australia's ambassador to the United Kingdom, Alexander Downer.
The FBI initiated the sit-down after learning the ambassador had evidence that one of Trump's advisers knew in advance about Kremlin interference in the U.S. presidential election, the newspaper said.
The Times reported that the FBI code-named the probe "Crossfire Hurricane," after a Rolling Stones lyric.
The name, known by a small group of FBI officials, was a reference to the Rolling Stones lyric "I was born in a crossfire hurricane" from the song "Jumpin' Jack Flash."
U.S. Justice Department Special Counsel Robert Mueller is now probing alleged Russian interference with the 2016 U.S. presidential election.
Read about Crossfire Hurricane in The New York Times.
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428aa535b9b59eafa8da94abafeed5a6 | https://www.cnbc.com/2018/05/16/us-housing-starts-april-2018.html | US housing starts total 1.287 million in April, vs 1.310 million starts expected | US housing starts total 1.287 million in April, vs 1.310 million starts expected
VIDEO1:2901:29US home building tumbles in AprilSquawk Box
U.S. homebuilding tumbled in April and permits fell, suggesting the housing market continued to tread water amid shortages of land and skilled labor.
Housing starts dropped 3.7 percent to a seasonally adjusted annual rate of 1.287 million units in April, the Commerce Department said on Wednesday. The decline reversed March's rise.
Data for March was revised to show starts rising to a 1.336 million-unit rate instead of the previously reported 1.319 million-unit pace. Building permits fell 1.8 percent to a rate of 1.352 million units last month.
Economists polled by Reuters had forecast housing starts decreasing to a pace of 1.310 million units last month and permits declining to a 1.350 million-unit rate. Starts fell in the Northeast, West and Midwest, but rose in the South.
U.S. financial markets were little moved by the data.
Single-family homebuilding, which accounts for the largest share of the housing market, edged up 0.1 percent to a rate of 894,000 units last month. Single-family homebuilding has lost momentum since setting a 948,000-unit pace last November, which was the strongest in more than 10 years.
Last month's gain in single-family starts was outpaced by an 11.3 percent decline in groundbreaking activity on multi-family housing units. Residential construction has been hamstrung by rising prices for building materials and shortages of land and skilled workers.
While a survey on Tuesday showed confidence among single-family homebuilders perked up in May, builders complained that "the record-high cost of lumber is hurting builders' bottom lines and making it more difficult to produce competitively priced houses for newcomers to the market."
The Trump administration in April last year imposed anti-subsidy duties on imports of Canadian softwood lumber. These constraints have left builders unable to plug an acute shortage of houses on the market, restraining home sales growth.
Investment in homebuilding was flat in the first quarter after growing at a 12.8 percent annualized rate in the October-December quarter.
Last month, permits for the construction of single-family homes rose 0.9 percent to a rate of 859,000 units in April. Permits for multi-family units fell 6.3 percent to a 493,000 unit-pace.
The number of single-family units completed fell 4.0 percent in April. Single-family units under construction increased 1.0 percent to the highest level since June 2008.
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2a5ebd55006b447d17486d6aadef8eed | https://www.cnbc.com/2018/05/16/watch-embattled-epa-chief-scott-pruitt-testify-before-the-us-senate.html | Watch embattled EPA chief Scott Pruitt testify before the US Senate | Watch embattled EPA chief Scott Pruitt testify before the US Senate
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Environmental Protection Agency Administrator Scott Pruitt will testify before the U.S. Senate Appropriations Committee's subcommittee on Interior, Environment, and Related Agencies on Wednesday.
The subcommittee is meeting to discuss the agency's budget proposal, but senators are expected to address the 12 investigations into the embattled EPA chief's management and expenditures.
Pruitt has drawn a firestorm of criticism over his travel and security expenses, and has attracted allegations of ethics violations for renting a Capitol Hill condominium linked to a prominent energy lobbyist.
Pruitt faced a grilling from Democratic lawmakers in back-to-back testimony before two House subcommittees last month. However, Republican Congress members largely defended Pruitt's record, helping him to emerge from the public appearances relatively unscathed. During the testimony, Pruitt largely placed the blame for spending and ethics scandals on his staff.
President Donald Trump has repeatedly reaffirmed his support for Pruitt, who is spearheading the administration's effort to roll back Obama-era environmental regulations.
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38bd0f72393a0ec5721a61f32cfde2c8 | https://www.cnbc.com/2018/05/16/zoetis-to-buy-veterinary-diagnostics-firm-abaxis-for-1-point-9-billion.html | Zoetis to buy veterinary diagnostics firm Abaxis for $1.9 billion | Zoetis to buy veterinary diagnostics firm Abaxis for $1.9 billion
Michele Barrett, a dairy technical services veterinarian for Zoetis, is tasked with managing the health of cows and advising clients on the best uses for Zoetis’ products.Karina Frayter | CNBC
Top animal health company Zoetis will buy Abaxis for $1.9 billion, as it looks to capture a bigger slice of the fast-growing market for veterinary diagnostics services.
Zoetis expects the diagnostics category which currently accounts for a small share of its more than $5 billion in annual revenue to grow faster than the animal health-care industry.
The veterinary diagnostics market worldwide is expected grow to $3.62 billion in 2022 from $2.31 billion in 2017, according to research firm MarketsandMarkets.
Abaxis should also help New Jersey-based Zoetis lower its reliance on its large animal dermatology business that faces looming competition from smaller firms.
Shares of Abaxis jumped about 15 percent to $82.75 in premarket trading on Wednesday, just shy of Zoetis' all-cash offer price of $83 per Abaxis share. The stock has surged 45 percent since the start of the year.
Zoetis will fund the deal through cash and new debt. It expects the deal to close before the end of the year and Abaxis to add to its earnings in 2019.
Abaxis provides tools and services that detect, prevent and treat animal diseases.
Guggenheim Securities and Barclays were Zoetis' financial advisers, while Piper Jaffray advised Abaxis.
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7e76b37506cabcada9cb27e1e19a1844 | https://www.cnbc.com/2018/05/17/asia-markets-us-china-trade-bond-yields-stocks-and-oil-on-the-agenda.html | Asian markets mostly gain as investors digest US-China trade news | Asian markets mostly gain as investors digest US-China trade news
Asian shares mostly closed higher on Friday, shrugging off the soggy close seen on Wall Street as investors digested the latest over U.S.-China trade developments.
Japanese markets closed higher after the release of core consumer price index data, which slightly missed expectations. The added 0.4 percent, or 91.99 points, to finish at 22,930.36 and the broader Topix edged higher by 0.38 percent. The gains came as the yen extended losses against the dollar, trading at 110.85 to the greenback at 2:53 p.m. HK/SIN.
Among sectors, the Topix mining and oil subindexes led the climb higher, with insurers and automakers also rising for the most part.
Elsewhere, the Kospi tacked on 0.5 percent to end at 2,460.65 as Samsung Electronics clung to gains of 0.2 percent. Shipbuilders and steelmakers were also higher.
Greater China markets were in positive territory. Hong Kong's advanced 0.61 percent by 3:05 p.m. HK/SIN, with mainland stock indexes also gaining. The closed sharply higher, rising 1.23 percent to 3,193.05, and the Shenzhen composite added 0.33 percent.
In Australia, the S&P/ASX 200 closed down 0.11 percent at 6,087.40 as gains in the health care and energy subindexes were offset by declines in the materials and financials sectors.
Developments in the second round of U.S.-China trade talks in Washington were in focus following news that China had announced it was rolling back an anti-dumping probe into U.S. sorghum imports. Earlier, Beijing had offered a proposal to reduce its trade deficit with the U.S. by $200 billion, Reuters reported, but China's foreign ministry later said that was not true.
President Donald Trump had said on Thursday that he doubted the high-level bilateral trade negotiations would be successful.
Several markets in the region had dipped into negative territory earlier in the day amid jitters over trade friction. "Market[s] ... took concerns over renewed trade tension and its potential disruption to the current equity rally seen over the last few days," analysts from OCBC Bank said in a morning note.
The overall move higher in Asia came on the back of slight declines seen stateside as investors digested news on ongoing U.S.-China negotiations and higher interest rates.
Although things could be a little more unpredictable and prone to volatility in the short-term amid trade concerns, fundamentals remained strong for Asian markets, said Sukumar Rajah, director of portfolio management at Franklin Templeton Emerging Markets Equity.
The move higher in U.S. bond yields was also in focus, with the yield on the 10-year U.S. Treasury note at 3.1 percent, after earlier touching its highest level since August 2008. Yields on the two-year and five-year Treasury notes, as well as the 30-year Treasury bond, touched multi-year highs overnight.
Of note, the Indonesian rupiah declined to a two and a half year low in the session despite the country's central bank raising interest rates on Thursday, a move that had been expected by most economists polled by Reuters. Bank Indonesia said on Friday that it was "in the market to smoothen rupiah volatility," Reuters reported.
Global benchmark Brent crude futures edged up by 0.34 percent to trade at $79.57 per barrel after rising as high as $80.50 per barrel, its highest since November 2014, in the last session. Meanwhile, U.S. crude futures added 0.25 percent to trade at $71.67.
In individual movers, Samsung Biologics rose 2.64 percent after the South Korean company said Biogen, a U.S. biotechnology firm, would exercise its call option to increase its stake in Samsung Bioepis. Biogen will exercise the option by June 29.
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f9a267285cdae8dee526a75456a77779 | https://www.cnbc.com/2018/05/17/buy-aig-since-earnings-estimates-have-finally-bottomed-out-says-ubs.html | Buy AIG since earnings estimates have finally 'bottomed out,' says UBS | Buy AIG since earnings estimates have finally 'bottomed out,' says UBS
Brian DuperreaultRob Kim | Getty Images
After years of doubtful turnaround efforts at U.S. insurer AIG, earnings may have finally hit bottom and present a possible buying opportunity, according to UBS.
"When Brian Duperreault joined the company about a year ago as the new CEO, we were supportive of his strategy to invest in talent and make changes to position AIG to grow," analyst Brian Meredith said in a note to clients Wednesday. "However, we recognized it would take time and that expectations needed to be reset."
"A year in, we believe expectations have now been fully reset and earnings estimates have bottomed out," he added. "As AIG begins to consistently meet or exceed earnings expectations, with less volatility and a return to growth, we see its shares re-rating closer to peers, driving meaningful upside."
The persistent underperformance has been driven largely by downward estimate revisions, loss reserve charges and an erosion in confidence in company management, the analyst wrote. But with Duperreault and a new team at the helm, AIG's Property and Casualty insurance should be able to find its footing.
In addition to upgrading his rating on shares to buy from neutral, Meredith set the company's price target at $65, implying 21 percent upside over the next 12 months. Shares of AIG rose 0.9 percent in premarket trading following the analyst's bullish note.
"The foundation is in place for long-term, sustainable improvement in the Commercial P&C business profitability," Meredith wrote. "While we expect some volatility in quarterly results to persist in the near term as the re-underwriting continues, we believe that consensus expectations have been reset, which should allow AIG to meet or exceed expectations."
"The Life & Retirement division should also benefit from a rising interest rate environment (improved spreads), an increase in index and variable annuity sales, opportunistic pension risk transfers deals, and M&A," he added.
— CNBC's Michael Bloom contributed to this report.
Disclaimer
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cfd97412fe35de8066dfb9161d60b71c | https://www.cnbc.com/2018/05/17/coca-cola-upgraded-by-barclays-on-turnaround-plan-focusing-on-smaller-packaging-lower-calories.html | Coca-Cola upgraded by Barclays on turnaround plan focusing on smaller packaging, lower calories | Coca-Cola upgraded by Barclays on turnaround plan focusing on smaller packaging, lower calories
James QuinceyGetty Images
Coca-Cola shares will rise due to its new business turnaround plans, according to one Wall Street firm.
Barclays raised its rating to overweight from equal weight for Coca-Cola shares, saying its new product changes will lead to sales growth next year.
"KO is executing a thoughtful business transformation that's among the most comprehensive we've seen," analyst Lauren Lieberman said in a note to clients Thursday. "KO's transformation should drive sustainably better growth, which in turn should yield a higher valuation premium."
Coca-Cola shares are underperforming the market this year. Its shares declined 9.4 percent year to date through Wednesday compared with the S&P 500's 1.8 percent return.
The beverage company's stock is up 1.6 percent Thursday.
Lieberman raised her price target to $48 from $45 for Coca-Cola shares, representing 15.5 percent upside to Wednesday's close.
Improving sales growth "could be like a match to fire. We haven't seen what the operating leverage at Coke should look like," Lieberman said on CNBC's "Halftime Report" Thursday. "It's been a long time since they've grown revenue 5 percent and when they do it with an asset light model, it should look very different than what we've seen in the past."
Citing Coke's plans to use smaller packages for soda drinks and to focus more on lower-calorie beverages, she predicted the company will return to an annual sales growth of about 5 percent in 2019 and 2020 after a more than 10 percent revenue decline this year.
"Should KO deliver the results that we are expecting, we think it deserves a greater valuation premium versus the last decade and recent past, particularly as the rest of the group is under pressure," she said.
— CNBC's Michael Bloom contributed to this story.
Disclaimer
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97095da08c8bf0d0c1b11f314df6f57a | https://www.cnbc.com/2018/05/17/congo-and-who-race-to-prevent-runaway-ebola-outbreak.html | Congo and WHO race to prevent runaway Ebola outbreak | Congo and WHO race to prevent runaway Ebola outbreak
A file photo of hygienists wearing protective suits disinfect the toilets of the Ebola treatment centre in Lokolia, the Democratic Republic of the Congo.Kathy Katayi | AFP | Getty Images
Congolese and U.N. officials were racing to prevent a runaway Ebola outbreak in Congo on Thursday, working out the logistics of keeping newly arrived vaccines well below freezing in a steamy region on the equator with unreliable power.
World Health Organization (WHO) spokesman Christian Lindmeier said the U.N. body would convene an Emergency Committee meeting on Friday to consider the international risks.
This is Democratic Republic of Congo's ninth epidemic since the disease was identified in the 1970s, but also its most alarming because of the risk of transmission via regular river transport to the capital Kinshasa, a city of 10 million.
An experimental but highly effective vaccine is being deployed against the virus, with health workers being vaccinated first, but it needs to be kept 80 degrees Celsius below freezing in a humid region where daytime temperatures hover around 30.
"For now, the cold chain is guaranteed at -80 degrees until Kinshasa," Health Minister Oly Ilunga told Reuters. "There is a fridge that will be prepared (on Thursday) ... in Mbandaka and that will be at -80."
"This vaccine is no longer experimental. The effectiveness has been proven and validated," he added. "Now that we are facing the Ebola virus we must use all the resources we have."
The WHO expert committee will decide whether to declare a "public health emergency of international concern", which would trigger more international involvement, mobilising research and resources, Lindmeier said.
VIDEO1:4701:47WHO deploys experimental vaccines to fight Ebola outbreak in the CongoPower Lunch
Emergency Committees have been set up to advise on past outbreaks such as the 2016 Zika epidemic in Latin America and the huge West African Ebola outbreak that killed at least 11,300 people in Guinea, Sierra Leone and Liberia from 2014 to 2016.
Mindful of criticism it received for being too slow during that epidemic, when it took months to convene an Emergency Committee, the WHO is moving fast on Congo's latest outbreak.
The committee can advise WHO Director General Tedros Adhanom Ghebreyesus on actions to be taken by Congo and other countries to try to halt the international spread of disease without unduly interfering with trade or transport.
The Kinshasa government reported the outbreak on May 8, one day after two samples tested positive, and within days the WHO was sending experts, preparing a helicopter "air bridge" to the site, and planning a vaccination campaign.
There have already been 44 suspected, probable or confirmed cases of Ebola, and 23 people have died. Potentially most worrying is a confirmed case in the city of Mbandaka, which has a population of about 1 million.
"The arrival of Ebola in an urban area is very concerning and WHO and partners are working together to rapidly scale up the search for all contacts of the confirmed case in the Mbandaka area," said WHO Regional Director for Africa Matshidiso Moeti said in a statement.
A vegetable's seller holds a Congolese Ministry of Health's information leaflet on Ebola virus on September 17, 2014 on Moral's market in the Bandal area in Kinshasa.Junior D. Kannah | AFP | Getty Images
Mbandaka is also connected via the Congo River to Kinshasa, a crowded city where millions live in unsanitary slums not connected to a sewer system.
Several public boats a day head from there downstream over the river to the capital. They are so overloaded with people that they sometimes topple over, toilets are filthy and water for washing absent.
The other Ebola cases were spread across sites in remote areas where the disease might not travel quickly.
Already the WHO has warned that there is a "moderate" regional risk because the disease could travel along the river to Central African Republic and Congo Republic. But it has said the global risk is low because of the remoteness of the area and the rapid response launched so far.
Even if the logistics of the 'fridge bridge' prove easy enough to overcome, "the vaccine is not a magic bullet," Peter Salama, WHO's medical emergency program head told Reuters this week, especially since health workers have been infected.
"Having healthcare workers infected is usually a 'canary in the mine' for potential amplification," he said.
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92f63cd29154ef65e3c5cfe43dd4e1cc | https://www.cnbc.com/2018/05/17/cramer-fears-fed-raising-rates-too-quickly-will-halt-a-red-hot-economy.html | VIDEO0:5900:59Raising rates too quickly could be bad news for economyMad Money with Jim Cramer
CNBC's Jim Cramer warned on Thursday that if the Federal Reserve raises interest rates too quickly it could spell bad news for the "red hot" U.S. economy.
Cramer said Wall Street expected that the Fed wouldn't need to raise rates too aggressively after this month's weaker-than-expected jobs report, which showed nonfarm payrolls increasing by 164,000 in April, less than the 192,000 jobs expected. Average hourly earnings also rose less than expected.
But Cramer said that now he's worried the central bank could raise rates faster than expected after the release of U.S. jobless claims data by the Labor Department on Thursday morning.
"The four-week moving average of these numbers fell by 2,750 to a little over 213,000," the "Mad Money" host said. "That's the lowest jobless claims figure since December 1969, when we had a 120 million fewer people in this country."
The four-week moving average is viewed as a better measure of labor market trends as it irons out week-to-week volatility.
The Fed, led by Jerome Powell in his first meeting as chairman, approved a widely expected quarter-point hike in March. The decision put the new benchmark funds rate at a target of 1.5 percent to 1.75 percent.
The probability that the central bank will raise its benchmark rate at its FOMC meeting in June is at 95 percent, according to the CME's FedWatch tracking tool for the fed funds futures market.
Cramer acknowledged that the U.S. economy needs higher interest rates to stave off inflation. However, Cramer added that higher rates also make it more expensive to borrow money and thus slow down the economy.
"In other words, when the economy gets too hot, we have these mechanisms in place that will cause it to cool back down, and that's where you might get hurt," Cramer said.
VIDEO11:5611:56Cramer explains his thoughts on the economy, FedMad Money with Jim Cramer
Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - VineQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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c519063d6f54bcb8c170b50c74f93360 | https://www.cnbc.com/2018/05/17/eu-takes-france-germany-and-others-to-court-over-air-quality.html | EU takes France, Germany and others to court over air quality | EU takes France, Germany and others to court over air quality
European Union flags fly at the entrance of the European Commission headquarters in Brussels, Belgium.Yves Herman | Reuters
The European Commission will take France, Germany, Hungary, Italy, Romania and Britain to the EU Court of Justice for failing to respect air quality limits, the EU executive said on Thursday.
The move follows a summit in January in which the Commission said it would get tough on member states that were still in breach of targets introduced for 2005 and 2010.
France, Germany and Britain will be taken to court over their failure to respect limits for nitrogen dioxide (NO2), while Hungary, Italy and Romania failed to meet required standards on the level of particulate matter.
"The Commission had to conclude that, in the case of six member states, the additional measures proposed are not sufficient to comply with air quality standards as soon as possible," EU Environment Commissioner Karmenu Vella told a news conference.
Spain, Slovakia and the Czech Republic avoided court by promising measures that would allow them to live up to EU air quality rules, Vella added.
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8da0466320e77b6179d115c967e0fdf7 | https://www.cnbc.com/2018/05/17/european-markets-investors-monitor-political-risk-us-china-trade-talks-to-resume.html | European markets close higher amid earnings; Ocado shares rally 44%; oil prices hit $80 | European markets close higher amid earnings; Ocado shares rally 44%; oil prices hit $80
European markets closed higher Thursday afternoon as commodities-related stocks rallied and shares of Ocado skyrocketed after the company signed a partnership deal.
The pan-European Stoxx 600 rose during afternoon trade to close higher by 0.5 percent, with all major bourses and most sectors in positive territory.
Europe's retail sector was the strongest performer Thursday afternoon, rallying to close up nearly 2 percent. Ocado boosted the sector, closing up over 44 percent after the British online supermarket said it had signed an exclusive deal with U.S. grocer Kroger. Ocado's shares were up over 50 percent earlier on in the day. The agreement allows Ocado to use Kroger's technology for grocery deliveries in the world's biggest market.
Europe's utility stocks also did well on Thursday, up over 1.4 percent amid earnings news. French waste and water group Suez reported stronger-than-anticipated first-quarter revenues due to an improvement in the volumes of waste treated in Europe. The Paris-listed stock closed 3.6 percent to the upside, though it had seen stronger trade earlier on in the afternoon.
The oil and gas sector also rose during afternoon trade to close 1.6 percent to the upside, propped up by oil prices that are at multi-year highs. Benchmark Brent crude traded above $80 per barrel on Thursday, marking its highest price since November 2014. Sanctions from the U.S. on major crude exporter Iran, compounding on tighter supply generally, have been pushing up prices.Travel and leisure stocks moved higher in afternoon trade, closing up just over 1 percent despite bookmakers' concerns over plans to cut the maximum stake on fixed-odds betting terminals in Britain. William Hill, which anticipated total gaming revenue would be hit by up to 45 percent, erased earlier losses and rallied in afternoon trade, ending the day up 4.2 percent.
Altice, the Dutch telecoms multinational, was near the top of the European benchmark. The firm closed 12.4 percent higher. This followed news that SFR, Altice's French division, had shown signs of recovery in the first three months of this year, adding broadband customers for the first time since 2014. Although the revenue of its French arm has continued to fall, this has been recorded at a slower pace than the previous quarter.
Meanwhile, shipping group Moller-Maersk missed first-quarter core profit expectations. The Danish conglomerate cited high oil prices, geopolitical risks and trade tensions as ongoing challenges to the group's business. Its shares closed off 8.9 percent, placing it second from bottom on the Stoxx 600.
After a negative open U.S. stocks rose, led by strong gains in energy shares. But those gains were capped by declines in Walmart and Cisco Systems as well as interest rates trading at multiyear highs.
The Dow Jones industrial average traded 46 points higher, while the S&P 500 and Nasdaq composite gained 0.3 percent each.
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00d9477147058b9c7bc6dc3f48b1200d | https://www.cnbc.com/2018/05/17/forex-dollar-sets-4-month-high-vs-yen-buoyed-by-rising-us-yields.html | Dollar climbs to five-month peak as euro falls on Italy worries | Dollar climbs to five-month peak as euro falls on Italy worries
Dan Kitwood | Getty Images
The dollar rose to a five-month high against a basket of major currencies on Friday, helped by weakness in the euro as investors fretted about political uncertainty in Italy.
The dollar index has gained for five straight sessions and is on track for a 1.3 percent weekly gain. It has risen 5 percent since mid-February, with investors betting U.S. interest rates will need to rise further to curb inflation.
Shaun Osborne, chief FX strategist at Scotiabank in Toronto, however, believes the dollar's rally was more about extreme short positioning that needed to unwind.
"We continue to view dollar gains as a temporary issue reflecting excessive short positioning and concerns European growth momentum has slowed and may impair the ECB's (European Central Bank) willingness to move away from quantitative easing later this year," Osborne said.
The euro on Friday was headed for its fifth successive weekly decline versus the dollar, its first such fall since 2015. Europe's single currency has fallen about seven cents in three weeks amid a sharp dollar rally and concerns about the outlook for Italy's next government.
The far-right League and 5-Star Movement have agreed on a governing accord that would slash taxes and ramp up welfare spending. Ratings agency DBRS warned on Thursday that the economic proposals of the anti-establishment parties could threaten Italy's sovereign credit rating.
In mid-morning trading, the euro fell to a five-month low of $1.1753. It has declined nearly 1.2 percent versus the dollar this week and dropped against the Swiss franc, which typically attracts capital in times of uncertainty.
"The possibility of a eurosceptic government in Rome is shaking investor confidence ... at this point a larger fiscal deficit and greater bond issuance (in Italy) does seem likely," said David Madden, a strategist at CMC Markets.
A founding member of the EU and the euro, Italy accounts for 15.4 percent of eurozone GDP and the Italian parties' hostility toward the European Union is the biggest challenge to the bloc since Britain voted to leave two years ago. A powerful rally by the dollar is also hurting the euro.
On Friday, the dollar set a fresh four-month high against the yen and was up 0.1 percent, buoyed by a further rise in U.S. Treasury yields that suggests an upbeat outlook for the world's largest economy.
In a note to clients, however, strategists at Citibank said the dollar rally would not last long. They cited the U.S. budget deficit, which is projected to balloon to more than $1 trillion in 2019, and would contribute to a 5 percent drop in the dollar index over the next 12 months.
VIDEO4:3804:38Rising dollar and rising rates not good for emerging markets: ProHalftime Report
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d42abde9305987671079fe17ff29c1ad | https://www.cnbc.com/2018/05/17/lawmakers-want-to-crack-down-on-sexual-harassment-assault-on-planes.html | Lawmakers want airlines to report sexual harassment to US government | Lawmakers want airlines to report sexual harassment to US government
James Lauritz | Getty Images
Airlines may have to report incidents of sexual harassment and assault to the federal government each year.
Lawmakers on Thursday proposed legislation that would require the Department of Transportation to collect data on incidents of sexual harassment and assault from airlines, rail and bus companies.
Flight attendants have reported "rampant" sexual harassment in their field and have pushed airlines and lawmakers to issue procedures for handling those cases.
Close to 70 percent of respondents in a recent survey by the Association of Flight Attendants, the world's biggest flight attendant union, said they had experienced sexual harassment over the course of their careers. The union represents some 50,000 flight attendants across airlines including United and Alaska.
The bill, called the "Stop Sexual Assault and Harassment in Transportation Act," would also require transportation providers to issue policies for how passengers can report sexual assault and harassment, and what employees will do about it. The bill, introduced by Rep. Peter DeFazio, D-Ore., proposes these companies also have a formal anti-sexual harassment and assault policy, and state it on websites and other places.
Employees in the aviation industry are uniquely challenged because law enforcement is often out of reach during a flight.
"We often get reports of passengers physically touching flight attendants in inappropriate ways and passengers touching other passengers in ways that can only be considered abusive," Abby Alconcher, who works in the employee assistance program at the Association of Professional Flight Attendants, said in a statement. The union represents some 26,000 flight attendants at American Airlines.
"On our international flights, we have special problems reporting incidents to authorities abroad, where the laws and enforcement of those laws can be very complex," Alconcher said. "These new guidelines and federal requirements are much needed and will help make the skies safer."
VIDEO1:0001:00Flight attendants are now being trained in martial artsDigital Original
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5f5619b32f606ecd09f755e8451a6356 | https://www.cnbc.com/2018/05/17/manaforts-former-son-in-law-cuts-plea-deal-with-government-reuters.html | Manafort's former son-in-law cuts plea deal with government | Manafort's former son-in-law cuts plea deal with government
Paul ManafortTom Williams | CQ Roll Call | Getty Images
The former son-in-law of Paul Manafort, the one-time chairman of President Donald Trump's campaign, has cut a plea deal with the Justice Department that requires him to cooperate with other criminal probes, two people with knowledge of the matter said.
The guilty plea agreement, which is under seal and has not been previously reported, could add to the legal pressure on Manafort, who is facing two indictments brought by Special Counsel Robert Mueller in his probe of alleged Russian meddling in the 2016 presidential election.
Manafort has been indicted in federal courts in Washington and Virginia with charges ranging from tax evasion to bank fraud and has pleaded not guilty to the charges.
Jeffrey Yohai, a former business partner of Manafort, was divorced from Manafort's daughter last August.
Yohai has not been specifically told how he will be called on to cooperate as part of his plea agreement, but the two people familiar with the matter say they consider it a possibility that he will be asked to assist with Mueller's prosecution of Manafort.
Legal experts have said that Mueller wants to keep applying pressure on Manafort to plead guilty and assist prosecutors with their probe. Manafort chaired the Trump campaign for three months before resigning in August 2016.
VIDEO1:1101:11A judge in Paul Manafort case criticizes Robert Mueller probeNews Videos
Both Trump and Russia have denied allegations they colluded to help Republican Trump win the election.
Hilary Potashner, a public defender who is representing Yohai, did not immediately respond to a request for comment.
Manafort's spokesman, Jason Maloni, declined to comment.
Andrew Brown, a federal prosecutor in Los Angeles, had been overseeing an investigation into Yohai's real estate and bank dealings in California and New York several months before Mueller was appointed to his post in May 2017.
Yohai's agreement, which was concluded early this year, included him pleading guilty to misusing construction loan funds and to a count related to a bank account overdraft.
While the deal was cut with Brown's office, the federal government can ask for help at any time, said one of the people familiar with the matter.
A spokesman for Brown did not respond to a request for comment and a spokesman for Mueller declined to comment.
Manafort is to go on trial later this year to fight the two indictments. The charges against him range from failing to disclose lobbying work for a pro-Russian Ukrainian political party to bank fraud.
As a close business partner, Yohai was privy to many of Manafort's financial dealings, according to the two people familiar with the matter and court filings in the bankruptcies of four Los Angeles properties in 2016. In addition to co-investing in California real estate, the two cooperated in getting loans for property deals in New York, Manaforts indictments show.
Mueller sent a team of prosecutors to interview Yohai last June, asking him about Manaforts relationship with Trump, his ties to Russian oligarchs, and his borrowing of tens of millions of dollars against properties in New York, Reuters reported in February, citing people with knowledge of the matter.
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103b9fd718edb7f071164381ead615ed | https://www.cnbc.com/2018/05/17/monetary-policy-not-trade-is-a-greater-risk-to-market-jp-morgan.html | Trade may be causing jitters but something else is a greater risk to market: JP Morgan | Trade may be causing jitters but something else is a greater risk to market: JP Morgan
VIDEO4:0304:03What's happening in trade represents real risk: StrategistPower Lunch
Trade represents a real risk to the global economy and markets, but the greater and more likely risk stems from monetary policy, strategist David Lebovitz told CNBC on Thursday.
He expects the Federal Reserve to hike rates a total of four times this year, and possibly another three times next year depending on inflation. The Fed already approved one quarter-point hike, in March.
"For investors that have become very accustomed to low interest rates and excess liquidity, the tide really is beginning to change," said Lebovitz, global market strategist at J.P. Morgan Asset Management.
Not only are interest rates rising in the U.S., the European Central Bank is likely to hike rates for the first time since the financial crisis late next year, he told "Power Lunch."
"This is an economy which is late cycle and inflation is being driven higher, not only by higher wages but by fiscal stimulus as well."
It was concerns about a trade war that weighed on the market Thursday. Stocks fell after President Donald Trump said he doubts ongoing talks between the U.S. and China will succeed. Observers are hoping the negotiations will avoid major tariffs proposed by both countries.
Lebovitz thinks cyclical stocks will outperform over the short to medium term, despite the risk he sees ahead. He specifically like financials, technology and energy.
"With fiscal stimulus in the U.S., the economy is going to keep growing at least until the middle of next year at an above-trend rate," he said.
"That above-trend growth should put further downward pressure on the unemployment rate, leading wage growth to pick up and subsequently leading the Fed to continue hiking rates. To me that is a very robust late-cycle environment."
However, in about 12 to 18 months Lebovitz would start to get a "bit nervous" and perhaps take some chips off the table.
— CNBC's Jacob Pramuk contributed to this report.
Disclaimer
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3e71c58360a0d1f3a97e8ff9b3c39be5 | https://www.cnbc.com/2018/05/17/north-korea-says-it-wont-hold-talks-with-the-incompetent-south-unless-differences-are-settled.html | North Korea says it won't hold talks with the 'incompetent' South unless differences are settled | North Korea says it won't hold talks with the 'incompetent' South unless differences are settled
VIDEO0:5800:58North Korea says it won't hold talks with SouthNews Videos
North Korea's chief negotiator called the South Korean government "ignorant and incompetent" on Thursday, denounced U.S.-South Korean air combat drills and threatened to halt all talks with the South unless its demands are met.
The comments by Ri Son Gwon, chairman of North Korea's Committee for the Peaceful Reunification of the country, were the latest in a string of inflammatory statements marking a drastic change in tone after months of easing tension with plans for denuclearization and a summit scheduled with the United States.
Ri criticized the South for participating in the drills, as well as for allowing "human scum" to speak at its National Assembly, the North's KCNA news agency said in a statement.
"Unless the serious situation which led to the suspension of the north-south high-level talks is settled, it will never be easy to sit face to face again with the present regime of south Korea," the statement said.
It did not elaborate.
KCNA, in its English-language service, deliberately uses lower-case "north" and "south" to show that it only recognizes one undivided Korea.
North Korea on Wednesday said it might not attend the June 12 summit between leader Kim Jong Un and U.S. President Donald Trump in Singapore if the United States continued to demand it unilaterally abandon its nuclear arsenal, which it has developed in defiance of U.N. Security Council resolutions to counter perceived U.S. hostility.
A South Korean presidential Blue House official said the South intends to more actively perform "the role of a mediator" between the United States and North Korea, but that goal has been cast into doubt by Ri's comments.
"On this opportunity, the present south Korean authorities have been clearly proven to be an ignorant and incompetent group devoid of the elementary sense of the present situation," Ri's statement said.
The statement did not identify the "human scum" by name, but Thae Yong Ho, a former North Korean diplomat to Britain who defected to the South in 2016, held a press conference on Monday at the South Korean National Assembly for his publication of his memoir.
In his memoir, "Password from the Third Floor," Thae describes North Korean leader Kim as "impatient, impulsive, and violent."
South Korean Foreign Minister Kang Kyung-wha told parliament that North Korea and the United States had differences of views over how to achieve denuclearisation. Trump acknowledged on Wednesday it was unclear if the summit would go ahead.
"It is true that there are differences of opinion between the North and the United States on methods to accomplish denuclearisation," Kang told lawmakers, according to Yonhap News Agency.
Trump will host South Korean President Moon Jae-in at the White House on May 22.
The Blue House intends to "sufficiently convey (to the United States) what we've discerned about North Korea's position and attitude... and sufficiently convey the United States' position to North Korea," thereby helping to bridge the gap, the official said.
Asked if she trusted Kim Jong Un, South Korean Foreign Minister Kang said: "Yes."
Japan's Asahi newspaper reported that the United States had demanded North Korea ship some nuclear warheads, an intercontinental ballistic missile and other nuclear material overseas within six months.
The newspaper, citing several sources familiar with North Korea, said U.S. Secretary of State Mike Pompeo appeared to have told the North Korean leader when they met this month that Pyongyang might be removed from a list of state sponsors of terrorism if it complied.
The Asahi also reported that if North Korea agreed to complete, verifiable and irreversible denuclearisation at the Singapore summit, Washington was considering giving guarantees for Kim's regime.
China's top diplomat, Wang Yi, said the measures North Korea has taken to ease tension should be acknowledged, and all other parties, especially the United States, should cherish the opportunity for peace.
Cancellation of the summit, the first between U.S. and North Korean leaders, would deal a major blow to what could be the biggest diplomatic achievement of Trump's presidency.
This comes at a time his withdrawal from the Iran nuclear deal has drawn criticism internationally and moving the U.S. embassy in Israel to Jerusalem has fuelled deadly violence on the Israel-Gaza border.
North Korea defends its nuclear and missile programmes as a deterrent against perceived aggression by the United States, which keeps 28,500 troops in South Korea, a legacy of the 1950-53 Korean War, which ended in a truce, not a peace treaty.
The North has long said it is open to eventually giving up its nuclear arsenal if the United States withdraws its troops from South Korea and ends its nuclear umbrella alliance with Seoul.
North Korea said it was pulling out of the talks with South Korea after denouncing U.S.-South Korean "Max Thunder" air combat drills, which it said involved U.S. stealth fighters, B-52 bombers and "nuclear assets."
Speaking to reporters in Brussels on Wednesday, U.N. Secretary-General Antonio Guterres said: I hope that, in the end, common sense will prevail, and the summit will take place and it will be successful."
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80f621e6bf4926d1fe652f3ccde019d4 | https://www.cnbc.com/2018/05/17/russia-moves-to-sell-jets-to-iran-after-trump-exit-from-nuclear-deal.html | Russia moves to sell jets to Iran after Trump exit from nuclear deal sinks Boeing's deals | Russia moves to sell jets to Iran after Trump exit from nuclear deal sinks Boeing's deals
Sukhoi Superjet 100 plane of Russia's Aeroflot Airline Company.Marina Lystseva | TASS | Getty Images
A Russian aircraft maker is exploring plans to make a modified version of its Sukhoi Superjet 100 regional airliner so Iranian airlines can buy the jet.
The move comes after the Trump administration withdrew from the Iran nuclear proliferation deal last week, and reimposed sanctions on Iran.
The fresh U.S. sanctions effectively prevent Boeing and Airbus from further pursuing ongoing efforts to sell commercial aircraft to the Islamic republic because planes from both companies contain many U.S.-made parts.
More from Puget Sound Business Journal: Uber launches Express Pool in SeattleTola Capital leads $23 million round for software startup InsightSquaredCargo airlines revive interest in Boeing 747 jumbo jets
Russian aircraft makers, who can skirt the U.S. sanctions, are already working on deals, Russian-state owned media outlet Sputnik reports.
"Russian airplane builders have a historic opportunity to receive a new foreign market for its latest designs," Sputnik trumpeted in a second report on its English language website last week.
One potential winner: Moscow-based Sukhoi Civil Aircraft, which makes the Sukhoi Superjet 100, a twin-engine single aisle regional jet introduced in 2008.
It's working on plans to make a modified version with no parts from the U.S. so it will be legal to sell to Iran, Sukhoi Civil Aircraft President Alexander Rubtsovsaid.
The Superjet 100 can carry between 98 and 108 passengers up to 2,385 miles. The jets have a list price of $50.5 million each, according to Sukhoi's English website.
Sputnik said Sukhoi recently signed memorandums of understanding for 40 Sukhoi SuperJet 100 passenger planes with two Iranian airlines, involving deliveries between now and 2022.
The airlines were not identified but the deals were brewing for months after President Donald Trump threatened to withdraw the U.S. from the Iran nuclear deal. A memorandum of understanding is not quite a firm order. Iranian airlines have had difficulty finalizing deals in the past.
The Tehran Times reported that the two Iranian airlines involved are Iran Airtour and Aseman Airlines.
Aseman Airlines is one of the Iran buyers Boeing was trying to win as a 737 Max customer.
In June 2017, Boeing and Aseman signed a contract for 30 737s, plus options on 30 more jets in a deal worth $3 billion at list prices.
The Tehran Times reported a Sukhoi Superjet 100 jets made a landing in Tehran back in February, where Iranian aviation experts studying future airplane purchases inspected the jet.
Sukhoi says it has delivered 159 Superjet 100s to date.
Operators include airlines and government agencies stretching from Russia (Aeroflot) to Mexico, Ireland, Kazakhstan, Switzerland and Thailand.
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e95921d8de4a44fc973dbbe7ecd378af | https://www.cnbc.com/2018/05/17/start-ups-partnering-with-hospitals-not-tech-giants-can-fix-health.html?&qsearchterm=joe%20lonsdale | Start-ups have a better shot than Amazon at fixing health care, says prominent Silicon Valley investor | Start-ups have a better shot than Amazon at fixing health care, says prominent Silicon Valley investor
VIDEO1:2901:29Palantir co-founder says it will be a startup who will shake up health careDigital Original
Silicon Valley venture capitalist Joe Lonsdale has just raised a $640 million fund and plans to spend a good chunk of that in health care.
Lonsdale, who co-founded software company Palantir and backed virtual reality company Oculus, now sees health as the market where start-ups can have the biggest impact addressing some of society's most systemic problems.
In an interview with CNBC, Lonsdale said technology giants like Apple, Google and Amazon have big aspirations in the market, but even bigger hurdles to overcome.
"I'm skeptical of big companies with established cultures coming into health," he said.
Lonsdale has made some early-stage health bets, including biotech start-up Synthego and health insurer Oscar Health. But for his next fund, which he closed in late April, he plans to double down on the space.
One area of emphasis is finding companies that will benefit from the recent shift away from fee-for-service health care, where doctors get paid for tests and procedures, to value-based care, where they get paid for keeping their patients healthy.
In terms of technology, Lonsdale wants to invest in tools that can help patients achieve better outcomes. That means algorithms that can help health providers figure out "this action at this time to help the patient get better," he said.
For example, oncologists with better information about their cancer patients could make more informed and personalized decisions about treatment options.
"We could be saving a lot of people," Lonsdale said.
While he's investing in start-ups, Lonsdale understands that entrepreneurship alone can't solve all of the problems of health care, a complex multitrillion-dollar sector dominated by incumbent health plans, insurers and hospital groups.
Rather, the government needs to play a role in helping change incentives, so health-care companies can get properly rewarded. That includes encouraging electronic health records companies to work together so patient data can flow more smoothly between hospitals, clinics and patients.
If the government required these systems to be open, "we could solve the problems more quickly," Lonsdale said.
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1d14a9e0394c4882c3e7d209dca7fff4 | https://www.cnbc.com/2018/05/17/stocks-are-on-track-for-weak-open-as-investors-digest-earnings-from-two-dow-stocks.html | Stocks are on track for weak open as investors digest earnings from two Dow stocks | Stocks are on track for weak open as investors digest earnings from two Dow stocks
A second round of U.S.-China trade negotiations kicks off in Washington today and although the bilateral talks are expected to be tough, there might still be scope to resolve some issues. (CNBC)* Trump trade advisor Navarro's sharp words for Mnuchin over China (Axios)* Germany's Merkel: EU now ready to discuss cutting trade tariffs with Trump (CNBC)
Despite throwing the widely anticipated June summit with Trump into doubt this week, experts say North Korea will most likely still attend talks in Singapore to discuss the possibility of denuclearizing the Korean Peninsula. (CNBC)
In what appeared to be a veiled rebuke of Trump, former Secretary of State Rex Tillerson warned that American democracy was threatened by a growing "crisis of ethics and integrity." Before joining the White House, Tillerson was CEO of Exxon. (NY Times)
One year ago today, Robert Mueller was appointed as special counsel to investigate Russia meddling in the 2016 election. On Wednesday, a Senate panel released thousands of pages of documents about a June 2016 Trump Tower meeting. (CNBC)* Inside Scaramucci's connection to Goldstone who set up that Trump Tower meeting (CNBC)* FBI held secret interview with Australian ambassador in 2016 (CNBC)
Ford (F) is set to restart production of its popular F-150 pickup truck tomorrow at its Dearborn, Michigan plant. Production had been halted due to parts shortages stemming from a fire at a supplier's factory. (CNBC)
Ocado shares in London were surging more 40 percent after the U.K.-based online retailer signed an exclusive deal to provide its grocery delivery service to U.S. supermarket chain Kroger. (CNBC)
The YouTube unit of Alphabet's (GOOGL) Google is set to launch a new music streaming service called YouTube Music next week. YouTube also plans to soon unveil a premium service to charge more for its original video shows. (Reuters)
The ISS investor advisory group recommends Facebook (FB) shareholders withhold support from five directors including Mark Zuckerberg and Sheryl Sandberg, over the social media network's ability to respond to problems like election interference and harassment. (Reuters)* Zuckerberg is set to meet with European officials next week on data privacy (WSJ)
A judge is set to rule today on a request by CBS (CBS) to keep controlling shareholder Shari Redstone from interfering with a planned special board meeting, at which directors plan to consider diluting Redstone's voting power. (Reuters)
Almost four months ago, Amazon (AMZN), Berkshire Hathaway (BRK.a) and J.P. Morgan (JPM) announced a new partnership aimed at bringing down the costs of health care. But the venture is finding it tough to fill its CEO post. (CNBC)* Amazon loses another key executive as it becomes a top target for tech talent poaching (CNBC)
Microsoft (MSFT) unveils a new Xbox controller with customizable features for disabled gamers. The new accessible device is targeted at users with a range of physical disabilities. It's set to launch later this year. (CNBC)
Southwest Airlines (LUV) said it had completed engine inspections across its fleet, following a fatal accident on a flight last month. CEO Gary Kelly said a small number of engine fan blades have been sent back to the manufacturer for further tests.
Allergan (AGN) was sued by Walgreen (WBA), Albertsons, and HEB Grocery, accusing it of antitrust violations in trying to prevent sales of generic versions of Allergan's Restasis. The drug is used to treat dry eye disease.
Xerox (XRX) named John Visentin as its new CEO after abandoning its deal to give control of the company to Japan's Fujifilm. Visentin had been hired last year by major Xerox investor Carl Icahn in his quest to push for change at the company.
Take-Two Interactive (TTWO) reported quarterly profit of 87 cents per share, beating the consensus forecast of 63 cents. But the video game maker's revenue was below estimates, in part due to lower than expected sales for its "NBA 2K" game.
Jack In The Box (JACK) fell 6 cents short of estimates with earnings of 80 cents per share. The restaurant chain's revenue also missed. Jack In The Box sees current-quarter and full-year sales to be flat and to up 1 percent.
Audiences across the world watching Meghan Markle marry Prince Harry on Saturday are expecting romance and pageantry. But such memorable opulence doesn't come cheap. The wedding, including security, is expected to cost about $40 million. (CNBC)
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bc1ca480d13ec80d9fb7c2a326913dff | https://www.cnbc.com/2018/05/17/tencent-shares-rise-after-q1-2018-earnings.html | Tencent adds $22 billion in value as shares surge 5 percent following earnings beat | Tencent adds $22 billion in value as shares surge 5 percent following earnings beat
Tencent's headquarters in Shenzhen, China, pictured in August 2016.Bloomberg | Getty Images
Tencent shares in Hong Kong surged over 5 percent Thursday after reporting earnings that topped analyst expectations.
The Chinese technology giant saw its market capitalization, or value, rise over $22 billion as shares traded at 416.4 Hong Kong dollars ($53) during afternoon trade. At the open, Tencent shares were at 424 Hong Kong dollars, but pared some of those gains.
On Wednesday, Tencent reported a 48 percent year-on-year rise in revenues and a 61 percent year-on-year rise in net profit for the first quarter of 2018. The company beat market expectations on the top and bottom line, and saw its operating margin — which was a concern for investors coming into the numbers — rise by 3 percent.
Tencent's gaming, video streaming, and WeChat messaging businesses all saw strong growth.
Still, shares of the company are still over 12 percent lower from the record high hit in January.
VIDEO2:0302:03Understanding why investors are worried about TencentCapital Connection
Many investors have been concerned that the massive growth Tencent has seen could be hampered due to rising competition and investment in new areas like video streaming and payments which could force the company to spend more.
"I think what's maybe hanging over the stock ... is the aggressive spending, aggressive investments that management's planning for the year ahead and potentially for a little while beyond that," Ryan Roberts, senior analyst at MCM Partners, told CNBC's "Capital Connection" on Thursday.
Wall Street analysts Jefferies cut Tencent's price target to 515 Hong Kong dollars from 530 Hong Kong dollars on Wednesday, but maintained its "buy" rating. Credit Suisse meanwhile cut its target price on the stock by 17 Hong Kong dollars to 523 Hong Kong dollars. It kept its "outperform" rating however.
VIDEO4:4304:43What is Tencent?CNBC Explains
The market is still quite bullish on the stock, despite some of the concern over spending. Analysts tracked by Thomson Reuters have a mean price target of 513.41 Hong Kong dollars, representing a more than 23 percent rise from Thursday's trading price.
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ba436d4fd2953f37fbaebc7e54c34407 | https://www.cnbc.com/2018/05/17/the-10-cities-with-the-most-billionaires.html | The 10 cities with the most billionaires | The 10 cities with the most billionaires
Grant Faint | Getty Images
New York is still the billionaire capital of the world. But Hong Kong is catching up fast.New York has 103 billionaires, according to the Wealth-X Billionaire Census. But Hong Kong is now a close second with 93. And while New York's billionaire population is static (it only grew by one last year), Hong Kong added 21 new billionaires last year, for a growth rate of 29 percent.
"New York is the preferred location for those seeking a luxury blend of finance, culture, commerce, shopping and real estate," the report said.In fact, New York City has more billionaires than every country except for China, Germany and India.Hong Kong's growth, however, could soon surpass the Big Apple. Its surge was "driven by strong domestic economic performance, the upturn in global financial markets and trade and investment with China," the report said. This was a big turnaround from 2016, when a falling stock market made Hong Kong the biggest billionaire loser.
San Francisco ranked third, with 14 new billionaires, bringing its total to 74. San Francisco now has more billionaires than all but eight countries."San Francisco has experienced the strongest growth in billionaire numbers of any U.S. city in recent years," the report said.Moscow lost two billionaires, as economic sanctions continued to hurt the economy.
Here is the rest of the top 10 billionaires cities list:
Grant Faint | Getty Images
Everett Rosenfeld | CNBC
San Francisco, CaliforniaKristine T Pham Photography | Getty Images
Andrey Rudakov | Bloomberg via Getty Images
TangMan Photography | Getty Images
Tianhan Chen | Cpressphoto | Getty Images
Singapore.Everett Rosenfeld | CNBC
Siegfried Layda | Image Bank | Getty Images
Mehul | Moment | Getty Images
Photographer is my life. | Getty Images
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4e8a960d5f4e6bd0c2b9a494c6051613 | https://www.cnbc.com/2018/05/17/the-bond-breakdown-is-about-to-get-worse-says-trader-heres-how-to-play-it.html | The bond breakdown is about to get worse, says trader. Here’s how to play it | The bond breakdown is about to get worse, says trader. Here’s how to play it
VIDEO3:4503:45The rate rally's far from done, says traderTrading Nation
The bond market is getting slaughtered as the U.S. 10-year yield hits its highest level since July 2011.
The move has TradingAnalysis.com founder Todd Gordon predicting that a key technical pattern is about to be broken.
Looking at a chart of the TLT long-dated treasury ETF, Gordon told CNBC's "Trading Nation" that recent weakness has the chart on the brink on piercing through the bottom of a head-and-shoulders pattern.
— Gordon is specifically talking about a parallel channel that has been taking place for ten years. A head-and-shoulders pattern has appeared that suggests the 20+ Year Treasury ETF (TLT) could be moving toward the bottom end of the channel, as TLT failed to retest and recapture old highs.
— TLT has specifically bounced up time and again from the $115 level before falling back, and now Gordon believes TLT could finally fall below that support level.
— This would essentially put an end to a four-decade downtrend in rates and uptrend in bond prices, according to Gordon.
The trade: Gordon is suggesting buying the September monthly 115 put for $2.14, or $214 per options contract.
Bottom line: Gordon believes the head-and-shoulders pattern in TLT is a bearish signal that could send bonds plummeting and rates soaring.
Disclaimer
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abd691310594589ab6fe30e8c65adb54 | https://www.cnbc.com/2018/05/17/the-last-two-times-walmart-shares-did-this-the-stock-saw-a-huge-rally.html | The last two times Walmart shares did this the stock saw a huge rally | The last two times Walmart shares did this the stock saw a huge rally
VIDEO2:3302:33Trading Nation: Walmart for the win?Trading Nation
A first-quarter beat was not enough for Walmart's stock to bounce. One trader sees positive signs in its technicals that could bring about a rebound instead.
"Walmart is at a critical spot," said Frank Cappelleri, senior equity trader at Instinet, on CNBC's "Trading Nation" on Wednesday.
Shares of the world's largest retailer have seen a four-month rate of change of nearly negative 20 percent, he points out. That kind of decline is one so rare it's only happened twice in the past 10 years – once in 2009 and again in 2015.
"The positive is that this led to bounces every time," said Cappelleri.
Even as it has seen a sharp decline, its technicals still suggest some strength, Cappelleri added.
"Walmart is now getting close to a very impressive support line -- $80, $82, it's been able to bounce there over the last week or so and, coincidentally, we're also near an uptrending support line – again near that 2015 low," he said. "We like to have two areas of support together when we can as opposed to one. So, I think all those factors together could help Walmart bounce."
Walmart's stock has not broken below $80 a share since October of last year. It did hit a year-to-date low of $81.95 a share last Friday, but has since recovered to trade in Thursday's session at just under $85.
Walmart's stock depends on investors keeping the faith in its long-term strategy, said Boris Schlossberg, managing director of FX strategy at BK Asset Management. Its recent deal to buy Indian company Flipkart, a multibillion-dollar bet, will likely put pressure on earnings for the next few years.
"The bulls are arguing that this is a huge bet on the future (essentially kind of like when Google bought YouTube for way too much money) ... and clearly Walmart is trying to make this whole strategy of clicks and bricks" work, Schlossberg told "Trading Nation" on Wednesday.
Any short-term strength will need to come from growth at its physical locations to make up for its investments in e-commerce, warns Schlossberg.
"If they can't grow in their bricks-and-mortar business while waiting for e-commerce to take off, the market will lose patience ," Schlossberg told CNBC in an email Thursday.
Walmart posted a 2.1 percent increase in same-store sales for its first quarter, while online sales in the U.S. rose 33 percent.
Disclaimer
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470481da6a142acc9f488c4db9768c83 | https://www.cnbc.com/2018/05/17/these-dow-stocks--including-goldman-sachs--win-big-when-rates-rise.html | These Dow stocks — including Goldman Sachs — win big when rates rise | These Dow stocks — including Goldman Sachs — win big when rates rise
Goldman Sachs CEO Lloyd Blankfein.Getty Images
Interest rates have been surging recently, with the benchmark U.S. 10-year Treasury note yield hitting levels not seen in nearly seven years. Certain stocks have track records of strong returns when rates rise.
The yield broke above 3.1 percent on Wednesday for the first time since 2011. Investors have been selling Treasurys (prices move inversely to yields) amid fears that rising inflation could lead the Federal Reserve to tighten monetary policy faster than the market is expecting.
VIDEO4:2304:23Expect to see 3.25% yields on the 10-year, bond expert saysSquawk Box
If rates keep rising over the next three months, buying shares of Dow Jones industrial average members Goldman Sachs, Microsoft and Visa could be profitable trades. Those three stocks returned at least 12.1 percent on average during three-month periods when rates were surging, according to data from Kensho, a hedge fund analytics tool.
Apple and J.P. Morgan Chase are also big winners when rates jump, averaging returns of 11.8 percent and 10.9 percent in three months, respectively. The Dow, meanwhile, averages returns of 4.8 percent.
(The CNBC Kensho search used the iShares 20+ Year Treasury Bond ETF as a proxy for the bond market. The search looked at periods of time when this ETF fell more than 5 percent in three months. Since bond prices move inversely to bond yields, this would correlate with an environment of rising rates.)
Meanwhile, General Electric and Walmart are among the Dow stocks that are the biggest laggards when rates jump. GE averages a loss of 1 percent during three-month periods of rising rates, Kensho data show, while Walmart averages a slight return of 0.3 percent. American Express, Coca-Cola and Procter & Gamble average returns of at least 1.7 percent, below the Dow's average returns during a surge in rates.
Disclosure: NBCUniversal was a minority investor in Kensho prior to the firm being acquired by S&P.
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d5d994e691ea0e218849fb84be4f2963 | https://www.cnbc.com/2018/05/17/three-ways-to-profit-from-the-soaring-dollar.html | Three ways to profit from the soaring dollar | Three ways to profit from the soaring dollar
VIDEO4:1104:11Three ways to trade the soaring dollarTrading Nation
As the greenback soars to its highest levels of the year, one trader sees a couple of market areas that could ride the currency's coattails.
"I think we have to go with the ones that have been outperforming so far," said Frank Cappelleri, senior equity trader at Instinet, Wedsday on CNBC's "Trading Nation."
The IWM small-cap Russell 2000 ETF has already seen new highs on dollar strength. The IWM hit another intraday record on Thursday after reaching a closing record Wednesday.
"I will caution one thing" on the IWM, said Cappelleri. "The dollar is actually getting close to this resistance point ($93-$94 area) so that's obviously going to impede any real breakout attempts for the Russell if this continues like that."
The U.S. dollar index has not traded above 94 since December 2017.
The IWC micro-cap ETF should also catch favor from a higher dollar, according to Cappelleri. Like small caps, the micro-cap ETF traded at an all-time high Thursday. The ETF is up 8 percent for the year.
"The IWC has actually been performing better than small caps and we see this here over the last four months," he said. "It's more exposure to the dollar, obviously much more influenced by it."
The XRT retail ETF, Cappelleri's final pick for a dollar winner, has managed to break out through an inverse head-and-shoulders bottom. The pattern — which sees a low, a lower low, and a higher low — stretched from early March through to early May. The XRT broke out from that technical pattern to reach an intraday high on Wednesday not seen since Jan. 31.
Time will tell whether retail's breakout can continue, cautions Cappelleri.
"One thing is that the XRT still has just about 40 of its components reporting over the next 2½ weeks so it's really going to give us an indication of whether this breakout is real or not," he said.
The dollar's rise shows few signs of slowing down, according to Boris Schlossberg, managing director of FX strategy at BK Asset Management.
"It's basically an implied bet on U.S. growth," Schlossberg said Wednesday on "Trading Nation." "There's very little to see on the horizon that really threatens the dollar at this point. ... Only the geopolitical things that we can't predict could derail the situation."
The DXY U.S. dollar index was slightly higher Thursday, on track for its fourth straight session of gains. The index, which measures the greenback against a basket of other currencies, has added 1.5 percent for the year.
Disclaimer
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a2bcd26a8494cafabdc536dd51590deb | https://www.cnbc.com/2018/05/17/tips-for-developers-simple-formula-to-realizing-an-idea-in-tech.html | There's 'a very simple formula' to realizing an idea in the tech space, says Google's vice president of product | There's 'a very simple formula' to realizing an idea in the tech space, says Google's vice president of product
VIDEO3:1703:17Google VP: We know our responsibility in handling dataCapital Connection
The process of taking an idea from inception to implementation in the tech space is easier than some might think, according to the creator of Google Photos.
Speaking to CNBC's Matthew Taylor on Thursday, Vice President of Product at Google Anil Sabharwal said it's "really a very simple formula" to bring ideas to life.
"What we like to think about is a few simple things," he added.
"Where are there opportunities? Where are there scenarios where users could benefit from tremendous capabilities in technology that may not have been there years ago that we can now solve real human problems?"
In the case of personal photography, Sabharwal said, a trend was noticed where people are taking "far more photos" than before.
"Back in the day we used to only be able to take 24 photos on film, now you take a thousand photos of one sunset," he added.
With this realization that people were taking more photos, the team then sought to find a solution to a series of questions.
"How do we give them peace of mind? How do we help them relive and reminisce? How do we help them share those photos with the meaningful people in their lives?"
The end result of that process was Google Photos, a product which Sabharwal said was "a really great combination of a problem that was unmet in the market and a capability that Google had that really no one else had."
"When you think about your personal memories and photos that are important to you, there's not many companies in the world that you're going to trust all that with," he said.
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25e699dd9a6ba4454fe19c6c8dcd1058 | https://www.cnbc.com/2018/05/17/top-proxy-adviser-iss-recommends-facebook-investors-withhold-support-from-5-directors-including-ceo-zuckerberg.html | Top proxy adviser ISS recommends Facebook investors withhold support from 5 directors, including CEO Zuckerberg | Top proxy adviser ISS recommends Facebook investors withhold support from 5 directors, including CEO Zuckerberg
Mark Zuckerberg, chief executive officer and founder of FacebookAndrew Harrer | Bloomberg | Getty Images
Top proxy adviser Institutional Shareholder Services on Wednesday recommended Facebook investors withhold support from five directors including Chief Executive Mark Zuckerberg and vote in favor of shareholder proposals aimed at improving the social media company's response to problems like election interference and harassment.
Facebook has come under scrutiny over the way it handles personal data after revelations that British consultancy Cambridge Analytica, which worked on Donald Trump's 2016 presidential election campaign, improperly accessed the Facebook data of 87 million users.
In its report, the influential adviser known as ISS wrote that Facebook "has been somewhat responsive during the controversy, but shareholders should continue to closely monitor data privacy issues."
ISS also suggested investors vote "for" shareholder proposals calling for the company to study establishing a board committee on risk management and to report on content management controversies, according to a copy of the recommendations seen by Reuters.
Both nonbinding proposals are meant to help Facebook address controversies such as over its handling of customer data and privacy concerns. Proponents of both cited news reports they said showed the need for action.
Facebook urged investors to vote against both resolutions, saying its current approaches to risk management and community standards are adequate.
The world's largest social network will hold its annual meeting on May 31 in Menlo Park, Calif.
ISS said that investors should withhold support for Zuckerberg and Chief Operating Officer Sheryl Sandberg, citing concerns over board nomination procedures.
The advisory firm suggested Facebook create a formal committee to nominate board candidates, as a way to ensure board accountability and to increase transparency and communications with shareholders.
It also recommended withholding support from three compensation committee members, writing that it has pay concerns including on security costs for Zuckerberg, "which have increased substantially without clear explanation."
ISS noted the company will not have an advisory vote on pay this year, warranting votes against the directors instead.
ISS recommended investors back three remaining director nominees.
In a report last week second-ranked proxy adviser Glass Lewis recommended investors vote for Zuckerberg, but also backed the two shareholder proposals and recommended votes against three audit committee directors responsible for overseeing legal and regulatory matters.
"In our view, the audit committee has failed to effectively fulfill its obligations to shareholders," Glass Lewis' report states.
Facebook founder Zuckerberg controls a majority of the company's voting power. ISS and Glass Lewis both recommended investors back non-binding shareholder proposals that would revamp its voting structure.
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4c3979ed5d1946bab0d3a32eb4282a92 | https://www.cnbc.com/2018/05/17/trade-talks-donald-trump-meets-chinas-vice-premier-liu-he.html | President Trump meets China's Vice Premier Liu He on trade issues: Chinese state media | President Trump meets China's Vice Premier Liu He on trade issues: Chinese state media
President Donald Trump speaks at a Make America Great Again Rally in Washington, Michigan April 28, 2018.Joshua Roberts | Reuters
Chinese Vice Premier Liu He, who is leading a trade delegation in Washington, has met U.S. President Donald Trump, state broadcaster China Central Television said on Friday.
A second round of talks between senior Trump administration officials and their Chinese counterparts started at the U.S. Treasury on Thursday morning, focused on cutting China's U.S. trade surplus and improving intellectual property protections.
White House spokeswoman Sarah Sanders had earlier said Trump would meet Liu later on Thursday.
Liu said the two countries should work together with mutual respect to promote stable and healthy ties, the People's Daily said in a post on an official microblog account.
"China is willing to strive together with the United States to appropriately handle and resolve trade issues felt by both sides on a basis of mutual benefit," the official newspaper cited Liu as saying.
He said the two sides should push to ensure trade cooperation continued to be a "ballast stone and propeller" of U.S.-China relations.
The paper said Trump had called for strengthening of trade and investment ties in sectors such as energy, manufacturing and agriculture, as well as pushing ahead work on intellectual property protection.
Trump has threatened to impose tariffs on goods worth up to $150 billion to combat what he says is Beijing's misappropriation of U.S. technology through joint venture requirements and other policies.
Beijing has threatened equal retaliation, including tariffs on some of its largest U.S. imports, including aircraft, soybeans and autos.
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e9169bd1681dabd1f0ea3ca6453cb6d4 | https://www.cnbc.com/2018/05/17/watch-white-house-briefs-press-after-north-korea-threatens-to-cancel-trump-kim-meeting.html | Watch: White House briefs press after North Korea threatens to cancel Trump-Kim meeting | Watch: White House briefs press after North Korea threatens to cancel Trump-Kim meeting
[The stream is slated to start at 1 p.m. ET. Please refresh the page if you do not see a player above at that time.]
White House press secretary Sarah Huckabee Sanders is set to brief reporters Thursday afternoon following reports that North Korea may reconsider the historic meeting between leader Kim Jong Un and U.S. President Donald Trump.
Kim Kye Gwan, North Korea's First Vice Minister of Foreign Affairs, said that the country may withdraw from the meeting if the United States insists that Pyongyang give up its nuclear weapons. However, political experts believe it is unlikely that North Korea will actually cancel the meeting.
On Tuesday, North Korea abruptly cancelled Wednesday talks with South Korea, calling ongoing joint military drills between South Korea and the U.S. a "provocation" and preparation for invasion of the North.
Additionally, Thursday marked a year since special counsel Robert Mueller began investigating Russian meddling in the 2016 presidential election and possible collusion between the Kremlin and Trump campaign. Trump sarcastically congratulated America for the milestone Thursday morning on Twitter.
Trump tweet
On Wednesday, Senate Intelligence Committee leaders said that Russia intended to help Trump and hurt Democratic candidate Hillary Clinton when it meddled in the election.
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0551b58d3c00959bd679ae1a17894087 | https://www.cnbc.com/2018/05/17/when-oil-is-rising-these-energy-stocks-jump-even-more.html | When oil is rising, these energy stocks jump even more | When oil is rising, these energy stocks jump even more
Source: Pioneer Natural Resources
Oil prices are surging this year, and the last decade shows that several energy stocks have performed well during similar periods of rising crude prices.
The outperformers run the gamut, from refiners like Andeavor and Phillips 66, to independent U.S. drillers like Concho Resources and Pioneer Natural Resources, down to drilling contractors like Helmerich and Payne.
On Thursday, U.S. West Texas Intermediate crude hit a 3½-year high at $72.30 and was up about 15.6 percent over a three-month period.
Across 16 similar oil prices environments, refining company Andeavor — previously known as Tesoro — has the been the best performer in the aggregate, according to hedge fund analytics tool Kensho. Shares of Andeavor, which operates refineries and oil infrastructure in the western United States, traded positive 75 percent of the time and gained an average 17.1 percent, the Kensho study showed.
The next best performer was Concho Resources, a driller focused on the Permian Basin in Texas. The stock returned an average 16.2 percent across the 16 instances and traded positive nearly 94 percent of the time, according to Kensho.
Another refiner, Phillips 66, ranked third in the Kensho study, returning an average 15.1 percent and trading positive 90 percent of the time.
Helmerich & Payne stock returned 14.6 percent in the study, while shares of Pioneer Natural Resources were up 14 percent.
There's no guarantee that oil prices will keep rising, but when it does, these stocks have a history of breaking out.
The results are based on 16 instances when oil prices rose more than 10 percent over the course of three months. Across those cases, WTI was up about 15 percent on average.
Disclosure: CNBC's parent NBCUniversal is a minority investor in Kensho.
VIDEO4:4004:40Oil prices and what drives themDigital Original
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73f5fa27f408f861614fedee82f78014 | https://www.cnbc.com/2018/05/17/your-first-trade-for-thursday-may-17.html | VIDEO0:4600:46Final Trade: SLV, FL & moreFast Money
The "Fast Money" traders shared their first moves for the market open.
Tim Seymour was a buyer of Petrobras.
Brian Kelly was a buyer of Silver.
Karen Finerman was a buyer of Foot Locker.
Steve Grasso was a buyer of Snap.
Trader disclosure: On May 16, 2018, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Tim Seymour is long AMZA, ACB.TO, APC, APH.TO, BABA, BAC, BX, C, CCJ, CLF, CMG, CRON, CSCO, CX, DAL, DPZ, DVYE, EEM, ERJ, EUFN, EWM, FB, FXI, GE, GILD, GM, GOOGL, GWPH, HAL, INTC, JD, LEAF, MAT, MCD, MO, MOS, MPEL, PAK, PHM, PYPL, RH, RL, SBUX, SQ, T, TIF, TWTR, UA, UAL, VALE, VIAB, VOD, X, XLE, XRT, YNDX, 700.HK. Tim is short IWM, RACE, SPY. Brian Kelly is long Bitcoin, Ethereum, Litecoin, Cardano, Bitcoin Cash, Stellar, EOS, Ripple, NEO, STORM, Monero. Karen Finerman's firm is long ANTM, C, FB, FL, FNAC, GOOG, GOOGL, GLNG, GMLP, INTC, JPM, KORS puts, LYV, PAH, SPY puts, SPY put spreads, WIFI. Her firm is short IWM. Karen Finerman is long AAL, BAC, BOT Bitcoin, Bitcoin Cash, Ethereum, C, CAT, DAL, DVYE, DXJ, EEM, EPI, EWW, EWZ, DVYE, FB, FL, GM, GMLP, GLNG, GOOG, GOOGL, INTC, JPM, LYV, KFL, KORS, KORS calls, MA, MTW, PAH, SEDG, SPY puts, TACO, WIFI, WFM. Karen Finerman is short TBT calls. Bitcoin and Ethereum are in her kids' Trust. Karen and her firm added PAH. Steve Grasso is long stock AAPL, BABA, CAR, EVGN, GE, JCP, MJNA, MON, MTCH, OSTK, PFE, RAD, SNAP, SQ, T, TSLA, TWTR, VRX. Grasso owns Callable Trigger contingent yield note linked to SPX, RTY, and MXEA. Grasso's kids own EFA, EFG, EWJ, IJR, SPY. Grasso's firm is long stock AMD, COTY, CTL, CUBA, DIA, F, GE, GLD, GSK, HPQ, IAU, IBM, ICE, LEN, MAT, MJNA, MSFT, NE, QCOM, RIG, SNAP, SNGX, SPY, T, TMUS, TWX, UA, WDR, WHR, XRX, ZNGA. Grasso bought SNAP.
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2483d92392d1856651be282edb2d3e0b | https://www.cnbc.com/2018/05/18/2018-hyundai-elantra-gt-sport-review.html | The 2018 Hyundai Elantra GT Sport is a bargain hatchback that lacks performance | The 2018 Hyundai Elantra GT Sport is a bargain hatchback that lacks performance
The 2018 Hyundai Elantra GT SportMack Hogan | CNBC
The Hyundai Elantra GT Sport is a lovely little hatchback.
It's a smart choice that merits consideration if you're looking for a small hatchback with a bit more power. If you're looking for a true hot hatch -- a high-performance car -- it's not quite there.
I tested the GT Sport and here's what I think.
The 2018 Hyundai Elantra GT SportMack Hogan | CNBC
We're talking about a Hyundai, which means it isn't priced in the same tier as the true hot hatches like the Volkswagen GTI.
Our tester came with blind-spot monitoring, heated seats, dual-zone climate control and an infotainment system that supports Apple CarPlay and Android Auto all for $24,260.
There is a technology package available that adds a panoramic sunroof, cooled seats, a premium audio system and a slew of active safety equipment. That requires the dual-clutch transmission option over the more-fun manual gearbox, however. It also brings the cost to nearly $30,000, which is more than I think the driving experience is worth.
The 2018 Hyundai Elantra GT SportMack Hogan | CNBC
The Elantra GT Sport has a lot going for it. The suspension is composed and delivers a comfortable ride that's more on the firm side. The 1.6-liter turbo engine delivers 201 horsepower without discernible lag or drama, while handling is competent.
The GT Sport feels like a refined and more powerful small hatchback. It doesn't light your hair on fire, but the driving experience still offers more engagement than a traditional compact car, especially with the six-speed manual.
The 2018 Hyundai Elantra GT SportMack Hogan | CNBC
The cabin is a fantastic place to spend time. Red accents abound, brightening up the cabin and paying respect to the car's "Sport" moniker. Materials are on a par with the class, but Hyundai's infotainment system rises above most of it.
In addition to the better interior, the GT Sport -- as opposed to the regular Elantra Sport I reviewed last year -- offers a lot of room for cargo and friends.
The 2018 Hyundai Elantra GT SportMack Hogan | CNBC
There's nothing glaringly wrong with the Elantra GT Sport, it's just not quite as good as I was hoping.
We've long been waiting for Hyundai or Kia to come out with a bargain performance hatchback, and I naïvely hoped that this was the one.
As I stated above, handling is competent and the power is adequate. It's not technically bad at cornering, but the wheel feels dead in your hands. The engine has the torque to move you off the line, but it never seems to encourage spirited driving. It'll do it, but it doesn't seem to want to.
The 2018 Hyundai Elantra GT SportMack Hogan | CNBC
This is a stark contrast to cars like the Focus ST, which basically always feel as though they're straining at the leash and want to explode onto a two-lane road.
Now, credit to Hyundai where it's due: it doesn't market this as a proper hot hatch to rival those cars. It never claimed that the GT Sport can compete, but that's almost worse. I wish it had the guts to chase the big guys, rather than creating a car held back because it was afraid of consumers and reviewers drawing the comparisons.
The Elantra GT Sport is fine, I just think it could have been great.
The 2018 Hyundai Elantra GT SportMack Hogan | CNBC
The GT Sport with a manual is only available in one configuration. Since we consider the stick shift to be a near-necessity to get some fun out of this car, that means our recommended configuration is $24,125.
The 2018 Hyundai Elantra GT SportMack Hogan | CNBC
Later this year, Hyundai will launch the "N" performance sub-brand, with the Veloster N amped-up and ready to rumble with Germany and America's best.
That's probably the car that I was hoping the Elantra GT Sport would be, and I'm looking forward to more N-branded Hyundais in the future.
Rating:
Exterior: 3
Interior: 4
Driving Experience:
Value: 4.5
Overall: 3.5
Price as configured: $24,260
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