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c8fc415c2024c391dcfcc0cf22ed74d3 | https://www.cnbc.com/2015/07/27/cramer-fang-is-bad-heres-why.html | Cramer: FANG is bad, here’s why | Cramer: FANG is bad, here’s why
VIDEO1:2401:24Cramer: FANG masking everything
While many investors have praised it, the growth in Facebook, Amazon, Netflix and Google stocks points to a very dire market condition, CNBC's Jim Cramer said Monday.
"FANG is bad. It's masking everything. When you have these stocks that are up 100 points, what it says is there's nothing else to buy," Cramer said on "Squawk on the Street.".
Cramer made his remarks ahead of the release of Facebook's quarterly results, which is scheduled for Wednesday after the bell. Amazon, Netflix and Google all posted results that handily beat Wall Street's expectations.
Read More Facebook vs. Twitter: How to play social media earnings
"We've got four stocks that are growing. Interestingly enough, none of those stocks depend on China," Cramer added.
Chinese stocks plunged on Monday, with the Shanghai composite index dropped 8.48 percent.
Disclosure: Cramer's trust owned Facebook and Google shares when this article was published.
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c4e17e3965d7b7ae6c2e2b511fa04d91 | https://www.cnbc.com/2015/07/27/tough-times-strike-saudi-arabias-millionaires.html | Tough times strike Saudi Arabia’s millionaires | Tough times strike Saudi Arabia’s millionaires
Turmoil in the Middle East, an unimpressive international stock market debut and tumbling oil prices will hit the wealth of Saudi Arabia's richest in years to come, according to a new report from WealthInsight.
Over the next five years, more Saudis will become U.S. dollar-millionaires, but the rate of increase will slow to 12.4 percent, less than half the steep 25 percent rate seen between 2010 and 2015, said the research firm.
Hassan Ammar | Stringer | Getty Images
This means that by 2020, around 55,245 Saudis will be high-net-worth individuals, with over $1 million in net assets, excluding their primary residence. This is up from 49,150 in 2015, according to WealthInsight, when Saudi Arabia—one of the most populous countries in the Gulf—had a total population of around 29 million.
One-fifth of Saudi Arabian millionaires make their money from oil, said WealthInsight, but the 50 percent decline in the price of WTI crude oil over the last 12 months is only one factor behind the upcoming slowdown.
"There have been other worries among the Kingdom's wealthy," Oliver Williams, head of WealthInsight, said in Monday's report.
"The collapse of the oil price is only half of the picture. So far, 2015 has seen the Kingdom's stock market make its disappointing debut on the world stage, two wars have been commenced along its borders and there is a new prospect of economic rivalry with Iran."
Saudi Arabia's Tadawul stock exchange officially opened to foreign investors on June 15 amid a great degree of hype. However, tight regulations and high valuations meant that foreign buyers failed to materialize in substantial volumes, while domestic investors sold. The benchmark Tadawul All Share Index has fallen by roughly 5 percent since then.
Read More Saudi Arabia hopes for 'activist investors'
Saudi Arabia's economic growth slowed from a peak of 10 percent in 2011 to 3.5 percent last year. The country is designated "high income" by the World Bank, with gross domestic product (GDP) of $746.2 billion in 2014.
Saudi Arabia's richest citizens have fallen this year in Forbes' list of the world's billionaires, particular those that are heavily invested in oil.
VIDEO1:5801:58Saudi Prince to give away $32B fortune
Prince Alwaleed Bin Talah Al Saud, Saudi's richest citizen with a net worth of $27 billion according to Forbes, fell to 34th place in the rankings in 2015 from 30th last year. However, Forbes said his wealth has risen from $20.4 billion in March 2014 and $22.6 billion in March 2015. The royal is invested in companies across the Middle East, Europe and the U.S., with high-profile stakes in Twitter, Citigroup and the luxurious Savoy Hotel in London.
Saudi's next richest man, Sheikh Mohammed Al Amoudi, is worth $10.9 billion according to Forbes and saw his place in the rankings decline more sharply than Al Saud this year. With a portfolio of energy, construction and agricultural companies, Al Amoudi's place in the rich list fell to 116th in 2015 from 61st last year. His wealth has fallen from a peak of $15.3 billion in March 2014, according to Forbes.
Things look better for Saudi's female multimillionaires—those worth more than $30 million—at least on the financial front. Their numbers are growing fast, shooting up 33 percent between 2010 and 2015, trumping the 24 percent growth seen in male multimillionaires.
In addition, the supremacy of Riyadh as Saudi Arabia's financial hub could be under threat from Jeddah, the kingdom's founding capital and residence of Al Amoudi. WealthInsight noted that the number of wealthy living in Jeddah was set to increase by 7.7 percent by 2019.
Male Saudis living outside Jeddah might look to healthcare to make their millions. Williams said that investing in the sector would be "an interesting diversification away from oil."
"In the next five years there will be a 27 percent increase in millionaires making their wealth from this sector, which is already a thriving business in the Kingdom," he explained.
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f771afe122e24b7a1659e866f6f8ec7b | https://www.cnbc.com/2015/07/28/fed-meeting-could-bring-more-volatility-than-expected.html | Fed meeting could bring more volatility than expected | Fed meeting could bring more volatility than expected
Traders work on the floor of the New York Stock Exchange.Brendan McDermid | Reuters
No matter how much it tries to avoid it, the Fed could get markets spinning on a fresh round of rate hike speculation Wednesday.
The Federal Open Market Committee ends its two-day meeting Wednesday afternoon, and is expected to release a statement that should be short on clues as to when the central bank could raise interest rates. The meeting should also be the last in a while where a Fed rate increase is not seen as at least a possibility.
Fed watchers surveyed by CNBC expect a rate hike in September, by a very thin margin. The next likely date is December, but there is also an October meeting, viewed as unlikely since the Fed does not have a scheduled press conference after it.
VIDEO6:4106:41Odds highest for September rate hike: FisherPower Lunch
"They definitely won't say (they will move) because there's too much data to come, so all they can do is leave open the opportunity," said Art Cashin, director of floor operations at the New York Stock Exchange for UBS. "I think they'll have the usual 15 minutes of frenzied trading, then everybody will say we're pretty much where we were before."
According to Bespoke, the has mostly reacted positively—gaining 0.44 percent on the Fed days since the shift to zero interest rates. Going back to 1995, the average S&P move was a gain of 0.34 percent on central bank statement days.
Some traders are looking for the Fed to make note of concerns about China's market meltdown or the commodities selloff that's hitting the emerging world, but economists see that as unlikely in Wednesday's statement, and a more likely comment in the Fed meeting minutes three weeks from now.
"The Fed doesn't want to be the one to make noise this week," said Diane Swonk, chief economist at Mesirow Financial. While Wall Street does not expect any significant move from the Fed, it has been rife with speculation on what the central bank might do to prepare the markets for the road to rate normalization.
Read More Despite Tuesday bounce, stocks have further to correct - strategists
"I get the impression they're really ready to go," said Swonk. She said the Fed would not get into calendar references for September or December or otherwise, and will instead point to its reliance on economic data. "It's a little obtuse what the data is telling us. Maybe inflation is picking up. Maybe it's not. These are all things that fit into the equation. They have to be careful about what they say at this time," she said.
Some in the markets are hard-pressed to remember the last Fed rate hike cycle, ended in June 2006.
"This is weirder than usual because they've been on zero for so long now, and there's been so much in between in terms of balance sheet expansions, and changes in the structure of their portfolio holdings ... and the delays. This is a more monumental decision than they've made in some time so the intrigue surrounding it is only going to be greater than the intrigue surrounding other tightening situations," said Ward McCarthy, chief financial economist at Jefferies.
George Goncalves, head of rates strategy at Nomura, said if the Fed acknowledges the weakness in markets that would be viewed as dovish and a sign it is not 100 percent sure it could move on rates yet.
"They have no incentive to be hawkish or dovish. I believe they would like tomorrow to be a nonevent, on a path to them eventually lining things up for a hike in September or December, depending on how the chips fall. I don't think they want to take September off the table. I don't think they want to signal. They just don't have enough information to get boxed in one way or the other. They have no incentive to be hawkish or dovish," he said.
Read More Welcome to the Fed's silly season for rate guesses
McCarthy, who expects a first hike in December, is watching the language in the statement on inflation. The Fed said inflation was running below its objectives in part because of energy prices. But in June, it said those prices have stabilized, and since then oil has plunged back into a bear market. "It will be interesting and very telling how they describe it," McCarthy said.
He said the Fed should sound more optimistic on housing. "Frankly, it's inflation tying them up right now. It's not the labor market," McCarthy said.
But some economists say the Fed could change the description of the labor market, as it and inflation are the two pillars of its mandate. In June, it said the "underutilization of labor resources diminished somewhat."
Goncalves said the Fed does have scope to enhance some of the language on the economy. "On one hand, you can upgrade some of the assessment of activity, but you can't turn a blind eye to inflation and the expectations for inflation. Oil's getting clobbered. One of the assumptions they've made is that oil's going to remain stable and they haven't gotten that yet."
Read More Fed rate hike would 'crush' US housing: Analyst
Others expect the central bank to tweak its comments about the risks to its outlook. Last month, the Fed described the risks to the outlook for economic activity and the labor market as "nearly balanced." Some Fed watchers say the word "nearly" could be dropped and that would be a sign of a pending hike.
"In the old days, they wouldn't hike rates if the risks were not balanced. In the latest statement in June, the risks were not balanced. I'm going to be looking at that paragraph to see if the risks are balanced. If it's balanced, that's the green light for them to go in September. That would be their clue that September is a done deal," said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi.
Goncalves said a wild card would be if the Fed discussed its balance sheet and reaffirmed it will continue to reinvest in Treasurys or mortgages even after it starts raising rates. While there's a small chance of it making a comment on that, the Fed will have to address it in the next couple of meetings, he said. "I think they're going to say we're going to keep going until we normalize rates. ... They could emphasize that they're going to continue the policy of reinvesting even after rate hikes begin," he said.
Read More More of Wall St. sees a later rate hike: Survey
McCarthy said the market will be sensitive to any shift. "Any change in any word is going to be a clue. And it will be a clue we almost certainly will misinterpret. I don't think they're going to try to be cute. I don't think they're going to try to send a subliminal message. They'll just try to call it as it is. The bottom line is we're going to have look at the data between now and September."
The Fed releases its statement at 2 p.m. ET Wednesday. There is also pending home sales data at 10 a.m. and a slew of corporate earnings, including MasterCard, Anthem, Garmin and General Dynamics. After-the-bell reports include Facebook, Whole Foods, Wynn Resorts, Marriott, Samsung, AMC Entertainment, La Quinta and SolarCity.
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bc310787dd513e4d0656b6d8b56928c3 | https://www.cnbc.com/2015/07/28/ford-q2-earnings-2015.html | Ford posts earnings of 47 cents a share vs 37 cents expected | Ford posts earnings of 47 cents a share vs 37 cents expected
VIDEO1:5801:58Ford posts earnings beat, cuts China forecastSquawk Box
Ford Motor delivered quarterly earnings that topped analysts' expectations on Tuesday, based on the continued strength of North American sales, led by its popular F-150 pickup truck.
The second largest U.S. automaker posted second-quarter earnings of 47 cents per share, up from 40 cents a share in the year-earlier period.
Revenue rose to $37.3 billion from $35.37 billion a year ago.
Wall Street had expected the company to deliver quarterly earnings per share of 37 cents on $35.34 billion in revenue, according to consensus estimates from Thomson Reuters.
Shares of Ford moved higher in premarket trading following the announcement. (Get the latest quote here.)
Operating profit totaled nearly $2.6 billion in North America, a company record for any quarter, and was linked to better pricing on new product launches, said Bob Shanks, Ford's chief financial officer.
Ford maintained its full-year 2015 forecast of an operating profit of between $8.5 billion and $9.5 billion.
Ford also maintained a forecast of North American profit margin between 8.5 percent and 9.5 percent. Shanks said he now expects the margin to end the year at the high end of that range.
Operating profit in Asia Pacific rose 21 percent to $192 million despite a dip in industry sales in China, the world's biggest auto market.
"As this has been happening, we have been adjusting our production all along" due to the lower demand, said Shanks.
Ford lowered its 2015 forecast for industry sales in China to 23 million to 24 million vehicles, from 24.5 million to 26.5 million at the start of the year. Sales in China in 2014 were about 24 million.
Shanks said Ford sees China sales of 30 million by the end of the decade.
Shanks said the company also achieved stronger pricing in North America because of the rollout of new versions of several models, including the F-150 truck and the Edge and Explorer SUVs.
Ford's U.S. June auto sales came in higher than some had expected when they were released earlier this month, but the company's sales in China, the world's largest auto market, were flat through the first half of the year.
Ford announced a new car-sharing program last week aimed at exposing potential customers to Ford vehicles. The program allows 26,000 Ford Motor Credit customers to rent out their car, SUV or truck and is planned to include six U.S. cities and London.
Ford recalled more than 400,000 vehicles in North America at the beginning of July for a defect that lead to engines staying on even after the ignition key was turned to the "off" position.
—Reuters contributed to this report.
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192edfd11ecff677fa991249c688ca8e | https://www.cnbc.com/2015/07/28/gm-targets-emerging-markets-with-new-line-up.html | GM targets emerging markets with new lineup | GM targets emerging markets with new lineup
A Chrysler Ram 1500 truck goes through inspection at the Warren Truck Assembly Plant in Warren, Michigan.Getty Images
General Motors, the world's third largest automaker, is investing $5 billion in a new family of vehicles targeting many of the world's fastest-growing emerging auto markets.
"The fundamental story here is one of growth," said Dan Ammann, president of General Motors.
The vehicles, ranging in size from a compact car to a small crossover utility vehicle, will be built and sold primarily in four developing markets: Brazil, China, India and Mexico.
VIDEO1:3301:33Record fine against Fiat ChryslerClosing Bell
The new models will be sold under the Chevrolet brand with the first ones planned for the 2019 model years.
GM is giving few details about the specific types of models it is planning or the price at which they will be sold, but Ammann described them as "global growth cars."
The blueprint for expanding global sales comes after several retrenchments over the last two years, with General Motors stopping production in some foreign markets including Russia and Australia. The company has also announced plans to curtail operations in other countries, such as Thailand and Indonesia, where turning a consistent profit has been difficult.
So why does GM think it can do better in developing markets with a new slew of models?
Read MoreFiat Chrysler will pay ... except when it comes to sales
"The central theme here is starting with what we think will be the customer requirements in different markets and working backwards from there to figure out how we deliver to those requirements at a value point that will allow us to make a good return on our investment," said Ammann.
For starters, that means sharing development costs with its joint venture partner in China, SAIC Motor. The two companies will jointly develop the engine and vehicle family core architecture. GM and all automakers are racing to reduce the number of different architectures or platforms used to build vehicles in hopes of saving money and maximizing the efficiency of their global operations.
On paper, consolidating platforms makes sense and seems like something automakers should be able to do fairly quickly. In reality, the demands of different markets with different requirements for vehicle safety, fuel efficiency and other factors has made it tough for automakers to streamline operations in far-flung markets.
Read MoreFiat Chrysler recalling 1.4M vehicles amid hacking defense
Ammann believes GM's new plan for high growth foreign markets will eventually lead to annual sales of two million vehicles.
"We believe from an investor stand point that it's important that we are placing bets in growth areas for the company, that we're growing the business, but that we're doing that in a profitable way and earning the right kind of returns on capital," he said.
Last week, GM reported much-better-than-expected earnings for the second quarter. However, the $2.9 billion in profit was driven primarily by the automaker's success in the U.S. and China, the world's two largest auto markets. The automaker leads the U.S. in auto sales and is second in China behind Volkswagen.
Questions? Comments? BehindTheWheel@cnbc.com.
CORRECTION: An earlier version misspelled Ammann in one reference.
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7740a2e080c2995007dce346bae64059 | https://www.cnbc.com/2015/07/28/home-prices-rose-49-in-may-vs-57-increase-expected-spcase-shiller.html | Home prices rose 4.9% in May vs 5.7% increase expected: S&P/Case-Shiller | Home prices rose 4.9% in May vs 5.7% increase expected: S&P/Case-Shiller
VIDEO0:3700:37Home prices on the riseHousing
U.S. home prices continued to rise in May, according to the S&P/Case-Shiller Home Price Index, but the increase fell short of analyst estimates.
The 20-city index rose 4.9 percent year-over-year in May. Analysts had expected an increase of 5.7 percent.
Denver led the gains with 10-percent year-over-year appreciation in home prices, following by San Francisco and Dallas, where prices rose 9.7 percent and 8.4 percent, respectively.
Read More Home prices as high as the temperature in Dallas
Nationally, single-family home prices have settled into an annual 4 to 5 percent pace of increase, moderating after the "double-digit bubbly pattern of 2013," according to S&P/Case-Shiller.
"Over the next two years or so, the rate of home price increases is more likely to slow than to accelerate. Prices are increasing about twice as fast as inflation or wages," David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, said in a statement.
The weak link in the market remains first-time home buyers, S&P/Case-Shiller reported.
Read More Strong housing on verge of reversal: Redfin
"First time buyers provide the demand and liquidity that supports trading up by current home owners. Without a boost in first timers, there is less housing market activity, fewer existing homes being put on the market, and more worry about inventory," Blitzer said.
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4e5573f2fcdeede6277b2a1531517be6 | https://www.cnbc.com/2015/07/28/oil-stocks-give-good-selling-opportunity-expert.html | Oil stocks give 'good selling opportunity': Expert | Oil stocks give 'good selling opportunity': Expert
VIDEO1:4101:41Good and bad driller & oil names: Pro Power Lunch
VIDEO2:4002:40Cashin says: Oil bounce boosts energy stocksWorld Economy
A rise in oil prices sent some large-cap energy stocks higher Tuesday, but the brief pop marks a "good selling opportunity" rather than a rebound for the battered sector, one industry analyst said.
West Texas Intermediate crude settled more than 1 percent higher Tuesday, and shares of ExxonMobil, Chevron and British Petroleum—all hit hard by a nearly 50 percent dip in U.S. crude in the last year—rose more than 3 percent. But investors may want to dump those stocks as prices could stay in a low range for six months to a year, said Fadel Gheit, a senior energy analyst at Oppenheimer.
"I do believe that oil prices are going to be lower for longer," he said in a CNBC "Power Lunch" interview Tuesday.
Technicians prepare oil drilling equipment to be used at Vaca Muerta Shale oil reservoir in Loma Campana. YPF has an agreement with US Chevron to exploit Vaca Muerta.Juan Mabromata | AFP | Getty Images
The price climb did not reflect any fundamental change in the market, Gheit noted. He added that "ample" supply and "very weak" demand will hold prices down for the immediate future, and big oil stocks will likely continue to struggle.
Read MoreBP warns on oil price after announcing $6.3B loss
While crude may remain under pressure, some companies can still thrive in that environment, contended Ken Sill, managing director and senior oilfield services analyst at Global Hunter Securities. He pointed to service companies with what he deemed "good balance sheets," including Schlumberger, Halliburton and Superior Energy Services.
Disclaimer
Disclosure: Ken Sill owns Schlumberger stock.
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505f2be0bd60e4ab8441c67da53554a5 | https://www.cnbc.com/2015/07/28/why-we-should-worry-about-turkeys-fight-with-is.html | Why we should worry about Turkey's fight with IS | Why we should worry about Turkey's fight with IS
Representatives from all 28 countries that make up NATO are met in Brussels Tuesday to discuss Turkey and its decision to join the fight against terrorist group Islamic State in Syria.
CNBC takes a look at the factors that could have prompted the country to join the fight against the jihadists.
Late last week, the Turkish government joined the U.S. in launching air strikes against Islamic State, the terrorist organisation and self-styled caliphate battling for control of vast swathes of Iraq and Syria.
The gains made by the group the group -- formerly known as the Islamic State of Iraq and the Levant (ISIL, or ISIS) -- in both these countries prompted the U.S. and other western allies last year to begin air strikes against the jihadist group.
In Syria, IS is fighting on two fronts: against Syrian soldiers loyal to President Bashar Al-Assad and Kurdish militants who are trying to gain control of parts of northern Syria. Turkey opposes both IS and the Kurdish PKK (Kurdistan Worker's Party), which has been fighting a long-running separatist conflict with the Turks.
Read MoreCould Islamic State's 'looting economy' face defeat?
Last Friday, Turkey conducted its first airstrikes both on IS positions and those held by the Kurdish fighters. Turkey has also allowed the U.S. to use one of its air bases to launch strikes against IS.
Turkey and the U.S. are also planning to sweep IS fighters out of a strip of land on the country's border with Syria in order to establish an "Islamic State-free zone."
The NATO meting to hear Turkey's request to discuss the campaign against IS and Kurdish militants and the crisis on the country's border. The meeting's delegates gave Ankara its full political support in fighting militants in Syria and Iraq but several nations urged Ankara not to undermine the Kurdish peace process by using excessive military force, Reuters reported.
"Turkey requested the meeting in view of the seriousness of the situation after the heinous terrorist attacks in recent days, and also to inform Allies of the measures it is taking. NATO Allies follow developments very closely and stand in solidarity with Turkey," NATO said ahead of the meeting.
Turkey has long appeared a reluctant to join the fight against IS because of its somewhat vulnerable position on the outskirts of the Middle East – Turkey is often seen as the country that "bridges" Europe, to the west of Turkey, and Syria, to the east.
One factor for Ankara's past reticence could be Islamic State's opposition to the Syrian government has suited Turkey. It is also reluctant to accept more Syrian refugees, as around 2 million people have already crossed the border into Turkey.
Read MoreTurkey: Why coalition talks could hit its economy
It is also reluctant to help any cause that could empower and strengthen the Kurdish cause. There are believed to be up to 25 million Kurds in Turkey, making any empowerment of that community – despite IS being a common enemy – a controversial move.
Traffic is seen crossing the Bosphorus Bridge, seen from the eastern, or Asian side of Istanbul, Turkey.Photographer | Collection | Getty Images
What likely prompted Ankara's decision to join the fight against was the recent suicide bombing in Suruc, close to the border with Syria, by a female jihadist believed to be a member of Islamic State, in which 32 people were killed -- and over 100 injured.
This was the catalyst for Turkey's involvement, Ian Bremmer, president of risk consultancy Eurasia Group, said in a note Monday, as Erdogan faced growing calls to act.
"This event was a watershed moment for the Turkish government, leading to anti-government protests across the country," Bremmer said.
While the PKK held the Turkish government responsible for the suicide attack, saying it had 'supported and cultivated' Islamic State against the Kurds, President Erdogan responded to the suicide bombing by launching raids and arrests on hundreds of suspected members of both IS and the PKK in Turkey.
There is the widespread belief that in return for Turkey's agreement to join the fight against IS, the U.S. will "turn a blind eye to Turkish attacks on the PKK in northern Iraq," Ayham Kamel from Eurasia Group said in a note Monday. It will also make the PKK a less useful tool in the fight against IS, he said.
If the fight against IS was not enough, Turkey is struggling domestically with a fractious political environment and lack of government after inconclusive elections in May. Although coalition talks are continuing, the possibility of new, early elections is still high.
Turkey's involvement in the battle against IS could make the country vulnerable – both from within and without.
For example, the PKK has already launched a series of attacks in Turkey after Friday's raids – meaning the end of a fragile ceasefire between the two sides since 2013.
Analysts agree that Turkey has suddenly become far more vulnerable to further attacks.
"Turkey's sudden decision to take the fight to Isis will likely lead to significant successful Isis attacks within Turkey, the biggest shift in terrorist vulnerability for a major emerging market since the beginning of the Arab Spring," Eurasia Group's Bremmer said.
Read MoreTurkey's election: What happens now?
"That in turn will put a damper on investor sentiment for the country, and make the political process in Turkey that much more challenging."
That view was echoed by Wolfango Piccoli, managing director of risk consultancy Teneo Intelligence, who said in a note on Monday that civil unrest in Turkey was likely to rise.
"Ankara's recent adoption of aggressive policies towards both the Kurdish Workers' Party (PKK) and the Islamic State (IS) has considerably raised the risk of terrorist attacks and sustained civil unrest inside the country," Piccoli warned.
"Amid continued speculation that the ruling Justice and Development Party (AKP) may call an early election for November 2015, there appears little prospect of the country enjoying political stability in the foreseeable future."
- by CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt. Follow us on Twitter: @CNBCWorld
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8712d6ac376f5ff8fa3ddec2fc4dca57 | https://www.cnbc.com/2015/07/29/greek-bailout-deal-deadline-in-doubt.html | Greece's Tsipras on shaky ground, warns of elections | Greece's Tsipras on shaky ground, warns of elections
Greece's problems are far from over as the country's leftwing prime minister warned that he might be forced into calling an early election if he does not have the support of his party to push through key reforms.
Speaking to a local radio station Wednesday, Alexis Tsipras said: "I would be the last person to want elections, if I had the secured parliamentary majority to make it through to the end of the year," he said, Reuters reported.
"But if I don't have a parliamentary majority, we will be forced to go to elections."
Tsipras' warning comes as talks between Greece and its lenders over a third 86 billion euro ($95.1 billion) bailout are supposed to get underway on Wednesday, but there are already doubts over whether a deal can be signed, sealed and delivered before the next billion euro debt to lenders is due.
Nerves are already frayed on both sides, given the political tensions in Greece over the controversial austerity measures and reforms that had to be passed at a record pace over the past two weeks in order to get a bailout deal.
However there are doubts over whether the technical details of the deal can be hammered out before a 3.2 billion debt is due to the European Central Bank (ECB) on August 20.
A Greek Finance Ministry official told Reuters Tuesday that the heads of the European Commission and International Monetary Fund delegations would arrive on Wednesday for talks on a third bailout program to keep Greece solvent and within the euro zone.
Greek Prime Minister Alexis TsiprasAyhan Mehmet | Anadolu Agency | Getty Images
Technical negotiations would be wrapped up by Friday, with "follow-up" discussions over the weekend under exceptional circumstances, he said.
Others in Europe think the talks will take far longer, however, given Greece's recent history in talks – including the five months it took for the country to repeatedly reject demands for more austerity, bringing the country to the brink of bankruptcy.
In the weeks running up to the deal on July 13, capital controls and panic rising over an exit from the euro zone had pushed leftwing Prime Minister Alexis Tsipras into finally relenting to Greece's creditors and agreeing to more far-reaching cuts in return for another desperately needed rescue.
The delegation from the European Commission, International Monetary Fund and European Central Bank (ECB) held preliminary talks with Greek officials in Athens on Tuesday, but talks would officially commence today, according to the Commission. Officials from the European Stability Mechanism (the agency in charge of bailout funds) will also be present for talks.
As is all too familiar when it comes to Greece's financial rescue, the talks were meant to have started last week but were pushed back due to "organizational issues," such as the location of talks and security issues, Reuters reported at the weekend.
With delays already plaguing the discussions, there are now doubts over whether a third bailout program can be agreed before Greece has a 3.2 billion euro debt payment to the ECB on August 20.
A so-called "Memorandum of Understanding" needs to be agreed upon in the next two weeks in order for a program – and bailout funds -- to be in place for Greece to make the payment.
Read MoreGreek markets: When will they open and what'll happen?
Mina Andreeva, Commission Spokesperson, said in a press briefing on Tuesday that there was no "fixed deadline" for the conclusion of talks. She said that that if all parties kept to commitments made at a July 13 euro summit, "an agreement by the second fortnight of August is possible."
At Wednesday's press briefing, Andreeva signaled talks were making headway, saying "intense work is progressing and we're satisfied with this constructive cooperation with the Greek authorities."
Read MoreTsipras rallies supporters ahead of Greek reform vote
For an agreement to be reached, more reforms in Greece were needed, however.
A European official close to the talks, who asked to remain anonymous due to their sensitive nature, said that a bailout program would have to be concluded sooner rather than later for Greece to make the ECB payment deadline.
"If you want the Greeks to make this payment deadline then talks need to be concluded at least a week earlier. Whether that will happen I don't know, I really don't know."
Michael Hewson, chief market analyst at CMC Markets, thought the completion of a bailout deal by then was unlikely and that more wrangling over reforms were on the horizon.
"With Greece talks already delayed by a week it is highly unlikely that we will see a third bailout agreement concluded in time for the August 20th ECB payment date, which will inevitably mean that the subject of further prior actions (implemented reform measures), and bridging finance are likely to be argued over between now and then," he said in a note.
His skepticism over a deal was reflected by Wolfango Piccoli, managing director of risk consultancy Teneo Intelligence. He said in a note on Monday that "short of a miracle, no comprehensive deal (will be reached) by mid-August."
Read MoreWhat's behind the IMF attack on the Greek deal?
And if the pressure of bailout talks were not enough, Piccoli said in a note on Wednesday that Tsipras' Syriza party was "set to split - the question is when."
The comments come ahead of an emergency meeting of the party's central committee that will be held on Thursday.
The rift within the party could further delay bailout talks, Piccoli warned. "Tsipras is facing an uphill struggle to keep his party united and under his control. As a result, the risk of unforeseen intra-Syriza developments that could delay, and at worst derail, the ongoing talks between Athens and its international creditors cannot be discarded."
- By CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt. Follow us on Twitter: @CNBCWorld
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045fc969c0cfc42cc3c930ae6e00392f | https://www.cnbc.com/2015/07/30/la-union-wants-to-be-exempt-from-15-minimum-wage.html | LA union wants to be exempt from $15 minimum wage | LA union wants to be exempt from $15 minimum wage
Protesters on the steps of Los Angeles City Hall, June 3, 2015, before the City Council voted on an ordinance that would raise the minimum wage in Los Angeles to $15 per hour by 2020.Al Seib | Los Angeles Times | Getty Images
As cities and states move independently to raise mandated pay for workers, the role of unions has emerged in the national fight for $15 an hour.
In May, the Los Angeles City Council voted to lift the minimum wage to $15 an hour by 2020. As the council reconvenes this week after a summer recess, the group is expected to take action on a union-backed clause in the wage bill that would exempt unionized workers.
Union officials argue the exception would allow them to negotiate better overall contracts, while some critics say the exemption would create an uneven playing field for mandated wages.
"The argument for a union exemption for minimum wage is that workers represented by unions have the ability to bargain for a combination of wages, benefits and working conditions that works best for them," says Chris Tilly, an urban planning professor at the University of California, Los Angeles.
"The idea is that their interests are being met," said Tilly, also director of the UCLA Institute for Research on Labor and Employment.
I would never do anything to undermine the rights of any worker.Rusty HicksLos Angeles County Federation of Labor, AFL-CIO
Rusty HicksGlenn Koenig | Los Angeles Times | Getty Images
The exemption proposal was made by Rusty Hicks, executive secretary-treasurer at the Los Angeles County Federation of Labor, AFL-CIO. Similar exemption clauses are not uncommon in laws passed to raise local minimum pay.
The collective bargaining clause in the wage bill "preserves and protects basic worker rights, and that is why nearly every city in California that has ever passed a minimum wage ordinance has included these protections," said Hicks in a prepared statement. "I recognize it needs additional time for debate in front of lawmakers and the public, and I support that.
"I would never do anything to undermine the rights of any worker," said Hicks, also a leader in the local "Raise the Wage" campaign that fought for the $15 minimum wage.
Some of the queasiness about a union clause in the L.A. wage bill may stem from shifting attitudes about unions over the decades. Are unions something every American worker should have access to, or a special interest group issue?
"I think unions are a standard piece of American democracy," said Tilly of UCLA. "But I think that's disappeared from public discourse."
Bigger picture, the fight in Los Angeles for $15 demonstrates the growing power that select cities have in shaping the national wage fight.
Seattle led the charge last year, when the city council voted to boost the city's minimum hourly rate to $15—more than twice the federal amount of $7.25 an hour. In November, San Francisco voters decided to lift the city's minimum pay to $15.
Read MoreThe $15 wage fight just got a whole lot more interesting
And in New York last week, a wage board—appointed by Democratic Gov. Andrew Cuomo—moved to raise the pay floor to $15 for thousands of fast-food workers throughout the state. Cuomo used existing wage laws and bypassed legislative approval. New York state's workforce has 180,000 fast-food workers—the fourth highest in the nation.
The broader strategy at play here, among wage advocates, includes cities planting the $15 wage stake first. The hope is that states will follow.
"At this point, cities are taking the pioneering role," said Tilly of UCLA. "We're going to see states prompted into increased action. It won't be too much longer before there's a higher federal minimum wage."
VIDEO1:1901:19Fast food wages risingSquawk Box
The role of individual cities in shaping the national wage fight dates back to the push for living wages.
The modern living wage movement can be traced to Baltimore about 20 years ago. In 1994, the city passed an ordinance requiring firms to pay employees a rate above the minimum wage while working on city contracts. "That built momentum for states to push higher state wages," Tilly said.
A living wage is based on the amount someone needs to earn to cover basic costs of living. A minimum wage is the lowest amount an employer may pay legally that's established by the government.
Fast forward to when the federal minimum wage was last raised, six years ago last week. "To some extent there's a trickle-up effect," Tilly said.
But what about the "real" value of the minimum wage?
A common reference point in the wage debate is the real—or inflation-adjusted—value of the minimum wage. If the minimum wage had kept pace with price increases since 1968, by 2014 it would have stood at $9.54—about 32 percent higher than its actual level, according to analysis from the Economic Policy Institute, a nonprofit think tank.
According to institute analysis, a federal minimum wage of $12 in 2020 would return the wage floor to about the same position in the overall wage distribution that it had in 1968.
But some businesses including franchise groups oppose higher mandated pay.
The International Franchise Association in a statement last week said Cuomo's decision on fast-food worker wages discriminates against the quick-service food industry.
"Applying a new mandatory minimum wage increase to a narrow group of businesses creates an unlevel playing field for owners that provide important entry-level jobs and valuable experience for millions of workers across the state of New York," said Steve Caldeira, president and chief executive of the franchise association.
Sherry Stewart Deutschmann, founder and chief executive of LetterLogic in Nashville, Tennessee.Photo: Michael W. Bunch
Mandated higher pay, of course, is a divisive issue and some small business owners say raised wages can lift employee retention and ultimately profits.
At 55-employee LetterLogic, a commercial printer in Nashville, Tennessee, starting pay for workers is around $14 an hour—roughly double the state's minimum of $7.25. Printing is a low-margin business, and great service allows LetterLogic to charge more than its peers.
LetterLogic founder and CEO Sherry Stewart Deutschmann does public speaking on wages and company culture. The most common question she's asked is: How she can afford to pay $14 an hour?
"We're not successful in spite of [higher wages], we're successful because of it," Deutschmann said.
Her wage decisions are based on what her lowest-paid employees could live on in the Nashville area. Deutschmann looks around her factory floor, does the wage math in her mind and asks, "In what neighborhood could I afford to live? What school could the kids go to, what college?"
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d28b6cf902b1860e9093e15f4982b552 | https://www.cnbc.com/2015/07/30/us-crude-slips-on-mixed-economic-data.html | Oil falls about 21% in July, worst since October 2008 | Oil falls about 21% in July, worst since October 2008
VIDEO2:3302:33Oil will be mired here for 2015: Analyst Worldwide Exchange
Oil saw its worst monthly drop since the 2008 financial crisis after signs that top producers in the Middle East were continuing to pump at record levels despite a growing global gut.
A higher U.S. oil rig count for a second week in a row added to the market's downside. Uncertainty ahead of key U.S. oil production and rig count data due later in the day also weighed on prices, despite a weaker dollar, which would normally support commodities.
U.S. crude closed down $1.40, or 2.89 percent, at $47.12 a barrel. The contract fell nearly 21 percent for the month of July, marking its largest monthly decline since October 2008, when oil had an epic collapse at the outbreak of the financial crisis. Brent fell 18 percent on the month.
Meanwhile, Brent was down $1.10 at $52.21 a barrel.
Diverting some attention from crude, heavy hedging activity in gasoline and diesel futures ahead of front-month contract expiration dominated play on the petroleum complex.
Read MoreLooking for yield? Big oil is trying to convince you they are the place to be
VIDEO3:0603:06Oil at mid-to-low $30s by Christmas: KilduffSquawk Box
July's oil price drop was spurred by a stock market tumble in top energy consumer China and a growing global oversupply.
A Reuters survey on Friday showed that Saudi Arabia and other big oil producers in the Middle East, members of the Organization of the Petroleum Exporting Countries, were not wavering in their quest for market share over price.
According to the survey, OPEC pumped more than 32 million barrels per day this month, up 140,000 bpd from June.
"The news on OPEC oil output hitting a new high is bearish for crude," said David Thompson of Washington-based oil brokers Powerhouse.
Read MoreOil to hit low $30s by the end of 2015: Kilduff
Also on Friday, industry firm Baker Hughes reported that U.S. energy firms added five oil rigs this week after putting 21 rigs into service last week, the most in over a year, despite the dive in U.S. crude prices from recent highs in June.
Commerzbank's head of commodities research in Frankfurt, Eugen Weinberg, said OPEC has to cut production to avoid lower prices, expressing hope on "a stricter quota discipline at its December meeting".
The market was awaiting U.S. government data on monthly crude production at 1800 GMT.
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5566a51392faff93969476215c883f99 | https://www.cnbc.com/2015/07/30/us-markets.html | Nasdaq outperforms amid earnings, data | Nasdaq outperforms amid earnings, data
VIDEO2:3002:30Second-quarter GDP: By the numbers
VIDEO1:3301:33Big picture for GDP:Santelli
VIDEO3:3003:30Pisani's market open: Protecting the dividend
U.S. stocks closed narrowly mixed on Thursday as investors digested more earnings and second-quarter GDP, a day after the Federal Reserve left interest rates unchanged. (Tweet This)
"I think there's a lot of confusion really. The focus was trying to understand what's going on with economic growth and the Fed," said David Kelly, chief global strategist at JPMorgan Funds. "People aren't quite sure whether the data makes it more likely or less likely that they will tighten."
After the second-quarter gross domestic product report came in slightly below expectations, traders will watch Friday's employment cost index for another indicator on the labor market and inflation.
Read MoreThis one word could hold key for Fed's rate move
"That should shed light on most important data points that the Fed (is watching)," said Quincy Krosby, market strategist at Prudential Financial. "The ECI in this environment is one of the most important pieces. It's been slow. It's been grudgingly moving higher."
The Nasdaq Composite closed a third of a percent higher, with the S&P 500 ending flat.
The Dow Jones industrial average closed about 5 points lower, failing to hold mild gains. The index fell 100 points in the open as Proctor & Gamble shares declined after reported earnings that beat expectations on revenue that missed slightly. The company said organic sales in the current fiscal year will be down slightly to up single digits.
Western Digital jumped nearly 10 percent as one of the greatest advancers in the Nasdaq. The firm reported adjusted quarterly profit that topped estimates but the hard drive maker's revenue was below forecasts.
On the other hand, Facebook fell about 2 percent to weigh on the Nasdaq as investors were disappointed by an 82 percent surge in expenses. The social media giant did report earnings after the close Wednesday that beat on both the top and bottom line.
"Overall I think the Facebook numbers reflect tremendous strength in their business," said Steve Weinstein, senior research analyst at ITG Investment Research. "I don't see anything in their numbers that will change the trajectory of their business. I think the selloff today is not material."
Other firms reporting earnings before the bell were Cigna and AB InBev. Companies posting results after the close include Amgen,LinkedIn and Expedia.
"I think earnings have been very enlightening this quarter, and the market is starting to get the message that things aren't as good as previously thought," said Maris Ogg, president at Tower Bridge Advisors.
Insurance company Cigna posted mixed quarterly results. Brewer AB InBev missed on both the top and bottom line due to poor weather and weak economic conditions.
"I think what's driving markets here is earnings and we've been up two days in a row," said Art Hogan, chief market strategist at Wunderlich Securities.
"The Fed has come and gone in the July time frame such that consensus hasn't moved an inch. Everybody's trying to come up with a reason why the Fed shouldn't raise rates," he said. "Pick your poison but the Fed really is trying desperately for one if not two rate hikes."
In economic news, U.S. gross domestic product came in at 2.3 percent, slightly below economists' estimates. The department revised its first-quarter GDP reading to a 0.6 percent increase from a 0.2 percent contraction.
"I was mostly surprised by the first quarter revision in GDP," said Randy Frederick, managing director of trading and derivatives at Charles Schwab.
"This means there are no negative quarters, and that's good," he said.
Read MoreUS government revises earlier GDPs to fix anomalies
"I think this means (policymakers) have room to hold off on an interest rate hike," said Tara Sinclair, chief economist at Indeed.
Sinclair remains optimistic on the economy despite the miss on the second-quarter growth figure. "My own reading of the data is there's still room to grow," she said.
U.S. weekly jobless claims increased by 12,000 week-over-week, but came in below expectations at 267,000, the Labor Department said.
"The thing with GDP is that it's old news. We're already well into the third quarter and this is a far back looking number," said Peter Boockvar, chief market analyst at The Lindsey Group. He added that Wall Street was "more focused on digesting what the Fed said yesterday."
On Wednesday, the central bank kept rates unchanged and gave no hint of liftoff coming in the next meeting. The decision on the rates was unanimous. Policymakers said the economy is expanding moderately and made no mention of recent volatility around Greece or China.
"While the official estimates say December is now more likely (for a rate hike), I believe most investors think September is the more likely bet," Frederick said.
In fact, Mark Luschini, chief investment strategist at Janney Montgomery Scott, noted that the one of the Fed's favorite indicators on inflation, the core personal consumption expenditures price index, rose 1.8 percent.
Read MoreUS GDP a dud but gives Fed inflation glimmer it needs
Not all analysts were convinced the economic data supports a rate hike in September.
"I think the underlying takeaway today is the Fed is facing a real problem," said Adam Sarhan, CEO of Sarhan Capital. "How can the Fed justify their word if economic growth is coming in lower than expected, with rates at zero?"
Major U.S. Indexes
The Dow Jones industrial average closed down 5.41 points, or 0.03 percent, at 17,745.98, with Procter & Gamble leading decliners and Microsoft the greatest advancer.
The closed up 0.06 points, or 0.00 percent, at 2,108.63, with energy leading four sectors lower and utilities the greatest advancer.
The Nasdaq closed up 17.05 points, or 0.33 percent, at 5,128.78.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 12.
Advancers were a touch ahead of decliners on the New York Stock Exchange, with an exchange volume of 789 million and a composite volume of 3.5 billion in the close.
The U.S. dollar traded about half a percent higher against major world currencies, with the euro at $1.09.
The 10-year Treasury yield fell to 2.26 percent, while the trimmed gains to hold near 0.73 percent.
Treasury Department auctioned $29 billion of 7-year notes at a high yield of 2.021 percent.
Crude oil futures for September delivery settled down 27 cents at $48.52 a barrel on the New York Mercantile Exchange. Gold futures settled down $4.60 at $1,088.70 an ounce.
—CNBC's Peter Schacknow contributed to this report.
On tap this week:
Thursday
Earnings: Amgen, Broadcom, Digital Realty Trust, Electronic Arts, Expedia, LinkedIn, United Health Services, Western Union, FireEye, Tempur Sealy
Friday
Earnings: Exxon Mobil, Chevron, Honda Motors, Seagate Technology, TransCanada, Newell Rubbermaid, Weyerhaeuser, Phillip 66, CBOE Holdings, Legg Mason, ArcelorMittal
8:30 am: Employment cost index
9:45 am: PMI
10:00 am: Consumer sentiment
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69cf98c279f12e23c9796b59c1759722 | https://www.cnbc.com/2015/07/31/europe-opens-higher-but-data-oil-china-weigh.html | Europe ends mostly higher on last trading day in July | Europe ends mostly higher on last trading day in July
VIDEO2:2402:24Europe ends mostly higher on last trading day in July
European equities closed higher on Friday after a choppy end to trading in July, as investors eyed key earnings and data from the U.S., ongoing volatility in Chinese equities and slipping commodity prices.
The pan-European STOXX 600 provisionally closed flat, after moving between gains and losses throughout the day.
Britain's FTSE 100 ended around 0.5 percent higher in the afternoon, while the German DAX closed around 0.4 percent higher, while the French CAC was the main out-performer, finishing 0.7 percent higher.
Read MoreChoppy July punishes China, commodities and EM
Earnings continued in full swing on Friday as a number of big companies reported results.
Shares in Airbus jumped to the top of the CAC, up as much as 4.4 percent, before closing around 3.5 percent higher, after it reported a rise in first-half core operating profit and revenue driven by strong uptake of helicopters and passenger jets.
However, the plane-maker also reported a further charge because of development delays in its new A400M, caused by a fatal crash in May.
BNP Paribas, finished around 2.6 percent higher after the French lender reported better-than-expected profit on Friday, as the strong dollar gave its earnings a boost.
Also in France, supermarket group Carrefour ended 0.9 percent higher, reversing earlier losses after it said its recurring operating profit rose 2.6 percent to 726 million euros in the first half of 2015, beating market expectations.
Meanwhile in the U.K., Lloyds Banking Group shares fell to near the bottom of the FTSE 100, down over 2.7 percent.
The part state-owned bank said that underlying profit for the first half of 2015 rose 15 percent year-on-year to £4.4 billion. However, it set aside a further £1.4 billion ($2.2 billion) to compensate customers for its mis-selling of loan insurance.
Across the Atlantic, U.S. stocks traded in a narrow range Friday, the final day of trade for July, as investors digested soft U.S. data and energy earnings.
China's Shanghai Composite index widened losses in late-afternoon trade, ending down 1.1 percent for the day and 13.4 percent for the month. However, trading was relatively calm compared to the volatility in the previous sessions.
The Chinese securities regulator is investigating the impact of automated trading on the market and had restricted 24 stock trading accounts for suspected irregularities, according to Reuters.
Focus was also on commodity prices. U.S. crude slipped for a second session to trade below $48 a barrel, as the mixed economic data from the U.S. weighed on sentiment.
In other news, Greek Prime Minister Alexis Tsipras is to hold an emergency party congress in September as he seeks to reassert his control over the more radical, left wing members of his party who are opposing bailout talks.
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39b48fc1cf731ffb4ae3eed113dcebba | https://www.cnbc.com/2015/07/31/us-markets-oil.html | Stocks close higher for July amid earnings, global growth concerns | Stocks close higher for July amid earnings, global growth concerns
VIDEO3:3403:34Cashin says: Uphill fight for stocksWorld Economy
VIDEO3:0503:05Pisani's market open: Exxon conserving cash
VIDEO2:4602:46What could derail a 2015 Fed hike?Worldwide Exchange
VIDEO3:5703:57Cashin: Keep eye on oil
VIDEO3:2303:23Employment data's 'shocking trend': Pro
U.S. stocks closed mildly lower on Friday, the final day of trade for July, as investors digested energy earnings misses and soft data that could push an initial rate hike further out. (Tweet This)
Stocks were mixed to slightly lower in afternoon trade after earlier attempting to rally. The Nasdaq struggled to hold higher in afternoon trade as shares of major tech firms declined. The S&P 500 and Dow Jones industrial average traded lower as declines in energy stocks weighed.
"This tug of war between the data and the stock market—that's why we haven't gone anywhere," said Lance Roberts, general partner at STA Wealth Management.
However, in a month marked by volatility around Greece and China, selloff in commodities and mixed economic data that raised concerns about growth, the major U.S. averages posted weekly and monthly gains. The Nasdaq outperformed with a 2.8 percent gain for the month. The S&P 500 gained nearly 2 percent for the month, while the Dow posted a 0.40 percent gain for July but remained off 0.74 percent for 2015.
"I think that is just another example that Greece and Ebola will flare up (but) what ultimately drives stocks is earnings," said John Canally, investment strategist and economist at LPL Financial.
The energy sector fell more than 2.5 percent as the greatest laggard in the S&P 500. Exxon Mobil and Chevron plunged more than 4.5 percent each as the greatest decliners in the Dow Jones industrial average.
Exxon Mobil and Chevron both posted earnings that missed expectations. Exxon posted the lowest profit in six years, while Chevron posted the worst quarterly profit in nearly 13 years.
Read MoreChevron's ugly earnings put focus on oil dividends
Crude oil futures settled down $1.40, or 2.89 percent, at $47.12 a barrel. Oil lost nearly 21 percent in July, its worst month since October 2008 during the financial crisis.
Other than the pressure from energy stocks, the major story of the day was "clearly the employment cost index and its impact on the dollar, gold, oil and Treasurys," said Peter Boockvar, chief market analyst at The Lindsey Group. "I think the stock market is struggling with continued soft economic data. Maybe it means the Fed won't raise interest rates. (But) the U.S. economy is struggling and that's not a good thing."
The employment cost index disappointed analysts with a rise of 0.2 percent, the smallest increase in 33 years and below expectations of 0.6 percent.
It's "telling us there's very little wage pressure in the U.S. economy right now. There are some FOMC members on the margin who are going to be less willing to raise rates in September," said Luke Tilley, chief economist at Willmington Trust Investment Advisors. "When we just look at the initial impact for firms, the cost of employment (was) not as much as in the first quarter."
Futures trimmed losses to trade mixed after the ECI came out at 8:30 a.m.
"What it tells us is September may not be a lock. If anything that may be a little reason why we're seeing a bit of rotation in futures here," said Art Hogan, chief market strategist at Wunderlich Securities.
The plunged after the data, trading near 0.66 percent, off from 0.75 percent before the data release. The 10-year yield edged lower, trading near 2.20 percent.
The U.S. dollar more than halved losses after briefly falling more than 1 percent. The euro fell below $1.10 and the yen traded near 124 yen against the greenback.
The Federal Reserve left interest rates unchanged after the conclusion of its July meeting on Wednesday. The statement indicated a more optimistic outlook on U.S. economic growth, but second-quarter GDP missed expectations on Thursday, while first-quarter GDP was revised from negative to slightly positive.
Read MoreEarly movers: TYC, EA, NWL, LM, ITT, WY, TPX & more
St. Louis Fed President James Bullard said a Wall Street Journal report that the GDP data cleared worries over growth outlook and supports the case for raising rates as soon as September. Bullard is a non-voting member of the Fed.
In other economic news, the Chicago PMI came in at 54.7 for July, the highest since January.
The final University of Michigan consumer sentiment survey came in at 93.1 for July, a decline from June's 96.1 read.
Read MoreAugust may mean big things for markets and the Fed
"I think we are headed to a mixed session," said Peter Cardillo, chief market economist at Rockwell Global Capital. It's the "last day of trading in July ahead of next week's busy economic calendar."
"Volume remains very moderate. It's hard to get any real grip on where we're going because it's summer holiday trading," Cardillo said.
Major U.S. Indexes
In individual stock movements, LinkedIn fell 10.5 percent after the firm reported that costs rose. The professional social network did on both the top and bottom line.
The Dow Jones Industrial Average closed down 56.12 points, or 0.32 percent, at 17,689.86, with Coca-Cola leading advancers and Chevron the greatest laggard.
Visa was the best performer for the month, rising 12 percent, while United Technologies was the worst with a near-10 percent decline. Nearly half the blue chips posted losses for July.
The closed down 4.79 points, or 0.23 percent, at 2,103.84, with utilities leading five sectors higher and energy the greatest decliner. The two sectors were the best and worst performers for the month, respectively.
The Nasdaq closed down 0.50 points, or 0.01 percent, at 5,128.28.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 12.5.
About two stocks advanced for every decliner on the New York Stock Exchange, with an exchange volume of 977 million and a composite volume of 3.6 billion in the close.
High-frequency trading accounted for 49 percent of July to date's daily trading volume of about 6.7 billion shares, according to TABB Group. During the peak levels of high-frequency trading in 2009, about 61 percent of 9.8 billion of average daily shares traded were executed by high-frequency traders.
Gold settled up $6.40 at $1,095.10 an ounce, but was 6.5 percent lower for the month for its biggest monthly drop since June 2013.
Overseas, European stocks closed mostly higher amid soft U.S. data and earnings, and the continued decline in commodities and mainland Chinese stocks. The STOXX Europe 600 outperformed for the month, posting gains of 3.95 percent, while the DAX posted gains of 3.33 percent for July.
The Greek stock exchange is set to reopen on Monday after being closed for five weeks.
Chinese stocks posted their in nearly six years, down 14.3 percent. The Shanghai Composite index finished in negative territory for the second straight session, down 1.1 percent for the day, as investors remain nervous amid commodity weakness.
Read MoreWhy Brazil's slowdown is almost as bad as China's
On Friday, Reuters reported that China's 24 stock trading accounts for suspected trading irregularities and was investigating investors who used automated trading strategies. Since the beginning of the collapse in mainland shares, trade in many of the stocks was suspended and the ruling Communist Party intervened with many efforts to prevent further declines.
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26b2cdfc260c580f04eb2636d4bcd166 | https://www.cnbc.com/2015/08/03/antique-cuban-cars-why-auto-collectors-are-holding-off.html | Antique Cuban cars: Why auto collectors are holding off | Antique Cuban cars: Why auto collectors are holding off
Contrary to popular belief, car collectors will not be descending on Cuba to buy up the thousands of antique American cars still on the road in the Caribbean nation. (Tweet This)
"We just don't see it," said McKeel Hagerty, CEO of Hagerty Insurance, which specializes in insuring collector cars.
A classic taxi car cruises the streets of Havana, Cuba.Justin Solomon | CNBC
Cuba is a bubble of anachronisms, one of the most obvious being the thousands American cars from the 1940s and 1950s, which still make up a significant form of transportation for the island nation.
Read MoreCuban students learn about U.S. entrepreneurship
The time-warp feel to the place stems from the imposition of the U.S. embargo in 1962, during which American companies were no longer permitted to do any business in Cuba. Once in place, it was not possible to get new American cars or parts.
Fidel Castro's autocratic socialism was the final nail in the coffin of the new car market—Cubans weren't permitted to buy cars. They could only be given them by the government. And the government never had enough money to import cars en masse from Europe or Asia. During the Soviet era, Russia sent Ladas, which, despite being newer, didn't last as long as the American cars.
A woman hails a taxi in Havana, Cuba.Justin Solomon | CNBC
Experts who spoke to CNBC expressed deep admiration for the ingenuity that has kept the American cars on the road, but it's that very same ingenuity that will likely cut into the value of the cars. "They're known to be held together by duct tape and bailing twine," said David Magers, CEO of Mecum Auctions.
"From our perspective, there's not a lot of enthusiasm for bringing those cars to the U.S. market," Magers said.
The "intrinsic value in collector cars is in the originality of its parts," said Steve Linden, an appraiser of collectible automobiles. Most important, he said, are "original body, panels, engines, transmissions."
It doesn't take long for an expert to see that there's little that's original left in the American cars on the roads of Cuba—most of which are General Motors models—except the body.
Classic cars line the streets of Havana, Cuba.Justin Solomon | CNBC
Hagerty recalled one of his first experiences with the island's cars on a trip their 15 years ago: "When I went, I jumped in a 1956 Cadillac, and it looked really good. The guy turned the key and it had a Peugeot diesel engine."
Hagerty likened it to a "Galapagos Island" of cars. "Because they've been cut off for so long, they've morphed into their own species. It's not a Cadillac. It's something else."
Read MoreAre muscle cars a good investment?
To use an example of how that affects valuation, Linden said a quintessential American car like a 1957 Chevy Bel Air four-door sedan, in perfect condition with original parts, could sell for as much as $50,000. The same model in Cuba, with a large dollop of Bondo body filler and substitute parts, would probably sell for only $5,000.
Additionally, the sweet spot of car collecting has moved from the 1950s to the 1960s. "What's hot right now are the American muscle cars of the late '60s and '70s," Magers said. Models such as Ford Mustangs from 1965 to 1973, Dodge Challengers, Chargers and Daytonas are hot, plus the Plymouth Superbird.
The greatest interest is likely to come from Cuban exiles who are proud to buy a car that is quintessentially Cuban, and representative of the era. Hagerty said that a car from there "will be considered on the merits of it being a 'Cuban' car, not a classic collectible."
At the same time, Hagerty said he expects there to be a great desire by the Cubans themselves to keep them on the island "as an example of the last vestige of the spirit of survival. There's something down there about these cars that means more to them than just a car."
"It's like jazz," he said. "It's one of their art forms."
Correction: One of the cars mentioned is a Plymouth Superbird. An earlier version misstated the name.
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73fe7f086400c94b48100df178e2a41f | https://www.cnbc.com/2015/08/03/cramer-remix-even-president-obama-cant-help-this.html | VIDEO0:5700:57Cramer: Even President Obama can't help this stockCramer Remix
With the averages closing in the red yet again on Monday, Jim Cramer reminded investors that there are always two sides to every coin.
"We always remember the first side, but we tend to forget the latter at the drop of a hat, which is a big reason why we got slammed today," the "Mad Money" host said.
The first topic that weighed on the averages on Monday was oil, as it threatened to take out the $43 level where it has bottomed several times before. But this time the decline feels pretty nasty to Cramer as the big dogs like Exxon, Chevron and Royal Dutch reiterated negative chatter when they reported last week.
Not only that, but Iran came out over the weekend and said that the moment the sanctions were lifted they will immediately increase output by 500,000 barrels and another 1 million in a month.
Basically, oil and oil stocks are both headed down. But should investors freak out about that?
Not necessarily, as most companies benefit from cheaper oil. The airlines, restaurants and retailers are all bouncing back just like they did last time.
"There is no doubt in my mind that lower gasoline is a major victory for consumers who are hungry for good news. So what's negative for 10 percent of the is, I think, a major positive for about 30 percent of the S&P," Cramer said.
However, there was one stock that no one seemed to be able to help. That was Sun Edison, which was down almost 4 percent on Monday. Cramer commented that even President Obama wouldn't be able to help this one.
Read More Cramer: Oil, China & Greece are great for the bulls
FreshPet pet food.Source: FreshPet | Facebook
Now that we have entered August and the bulk of Hollywood's summer blockbuster season has passed, Cramer thought this would be the perfect time to check in with IMAX Corporation.
IMAX is the company behind the ultra-big-screen format where many people love to see the loudest and most explosive movies. IMAX screens are now located in more than 950 theaters across 65 different countries, and more than 400 theaters are on a waiting list to install an IMAX screen.
However, IMAX hit a wall a month and a half ago, and Cramer wondered if this was in part due to the new weakness in China, as it seems to be a growing portion of its business. Currently, IMAX has 239 theaters in China, and company plans to take its IMAX China business public on the Hong Kong stock exchange.
So, should investors be concerned about the company's Chinese exposure, or is the stock just trading at a bargain here? To find out, Cramer spoke with IMAX CEO Rich Gelfond.
"I think people are distracted. I think China is an opportunity much more so than it is a risk," Gelfond said.
Read More IMAX CEO to Cramer: China is opportunity, not risk
Amid the choppy market, Cramer is always looking for powerful, long-term themes that can overshadow whatever is going wrong overseas or fears of the Fed. So that is why he has been pushing the organic and natural food stocks, because as the country has become more health conscious, they are also concerned about what is in their food.
Based on this trend, Cramer believes that the same people who will only eat natural and organic food themselves will make sure that their pets do the same. So with both FreshPet and Blue Buffalo coming public in the last 12 months, Cramer took a closer look to see how they stack up against each other.
"I wouldn't buy Blue Buffalo or FreshPet at these levels. As standalone companies, the value proposition just isn't that attractive," Cramer said.
However the "Mad Money" host believes that if the two companies merged, they could create a natural pet food colossus that would be quite intriguing to investors. And if that happened, he would be a buyer.
Adam Jeffery | CNBC
Monday marked the eighth anniversary of Cramer's infamous rant about how the Fed knew nothing about the subprime market and how that lack of knowledge would cause systematic risk to the financial system. Looking back at his 2007 rant, the "Mad Money" host wonders if things have really changed.
"Sometimes, it is just about being in the game long enough to know people in high places," Cramer said. (Tweet This)
Cramer passionately felt that the market was going to stop functioning and investors couldn't afford not to interfere. And sure enough, that is exactly what happened.
"Now, I give the Fed credit that it changed dramatically and helped save the financial system. I have nothing but respect for Ben Bernanke and for current Fed Chief Janet Yellen, and they, empirically, have shown great judgment keeping rates low," Cramer added.
So this begs the question—how did Cramer know it was about to happen and how did the Fed not?
After a lot of reflection, Cramer found the reason in his background. Unlike many people of the Fed, Cramer actually comes from the industry. So, while the Fed has a lot of people with strong backgrounds and academic skills, the epicenter of the problem was the banking industry and that is where Cramer came from.
"Because the top people who were running these firms were of my vintage. They grew up with me, graduated with me, or traded with me at my hedge fund. They worked alongside me or competed against me," Cramer said.
Read More Cramer: 2007 Fed rant—has anything really changed?
One stock that actually managed to go higher on Monday was Brixmor Property Group, the largest grocery-store anchored REIT in the U.S. that sports a 3.65 percent yield. It owns more than 520 shopping centers, and more than 70 percent of those are anchored by a high quality supermarket.
Over the years, Brixmor has proven that it is successful at its business model. It first buys a shopping center, and then brings in a high quality grocery store as a tenant in order to attract better retailers to the same site.
So ,can Brixmor work its way even higher in this environment? To find out, Cramer spoke with Brixmor CEO Michael Carroll.
He emphasized that the primary focus of the company is an organic growth story backed by below-market leases.
"This quarter was a perfect example. If you look, new lease spreads were over 50 percent for the quarter. I liken it to rent controlled apartments in New York City, when they finally free up, and we bring it to market. That is a great opportunity for us and really helps us drive revenue," Carroll said.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
CenturyLink Inc: "No growth, and I'm not going to be able to push anything that has no growth even if it has good yield. That's why I like Brixmor."
Marriott International: "Marriott is way oversold. I think it's actually a buy right here, particularly with gasoline coming down."
Read MoreLightning Round: This stock is way oversold
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3182bbddc16578ecf96ab51b497e17e4 | https://www.cnbc.com/2015/08/03/six-home-modifications-to-help-you-age-in-place.html | Six home modifications to help you age in place | Six home modifications to help you age in place
Henglein and Streets | Getty Images
Your home may be exactly what you need right now, but how about in 10 years, or 20?
More consumers are thinking that far ahead. Almost two-thirds of baby boomers say they do not plan to move in retirement, according to a 2014 Demand Institute survey—and, of those, 62 percent have lived in their current home for more than a decade.
Not surprisingly, so-called aging-in-place renovations that make homes friendlier for older adults have boomed in popularity. A recent survey of remodeling site Houzz users found that 20 percent of staying-in-place seniors remodeled a kitchen last year and, of those, 60 percent made upgrades with aging in mind. Among the quarter of seniors who upgraded a bathroom, 69 percent made an aging or accessibility upgrade.
Read MoreThe true cost of staying home for retirement
The good news? Design that's friendly as you age isn't necessarily going to be painful to your wallet—or your younger self's design aesthetic.
—By CNBC.com's Kelli B. Grant Posted 3 Aug. 2015
Handicapped disabled access bathroom bathtub with grab bars.Paul Velgos | Getty Images
Project popularity: Among Houzz users who took on an aging-in-place remodeling project last year, 20 percent installed slip-resistant flooring in the bathroom, 11 percent in the kitchen and 6 percent in other areas of the home. Twenty-nine percent removed trip hazards from their residence and 26 percent installed grab bars.
What you should know: Reducing the odds of slipping comes down to smart choice of flooring material. "You don't put in those shiny, smooth surfaces," said certified aging-in-place specialist Barbara Murphy, a design consultant with Neil Kelly in Lake Oswego, Oregon. When picking tiles, look for those that have a higher coefficient of friction value, which means they provide greater traction. (A rating of 0.6 or higher meets Americans with Disabilities Act guidelines.) Flooring with ridges or low-pile carpeting can also be smart footing-friendly picks. Prices will vary by the materials chosen and square footage.
MetLife's Aging in Place workbook estimates two grab bars and installation will cost $250. But there can be some cost considerations. Bars should be graded to bear at least 250 pounds, said certified aging-in-place specialist Robert Criner, chairman of the remodeling arm of the National Association of Home Builders. Otherwise, they may come down with you rather than halt a fall. For the same reason, installation may also require more extensive work than simply bolting the bar in place, to ensure adequate structural support.
Read MoreHow much will that home renovation cost you?
Katarzyna Bialasiewicz | Getty Images
Project popularity: The Houzz survey found that 16 percent widened a kitchen door, 11 percent widened a bathroom door, 6 percent widened a door or hallway somewhere else in the house, and 2 percent either installed an elevator or lift or prepared a space to do so in the future.
What you should know: Widening a doorway might seem like an easy project, but that's not always the case. Fixes like using offset hinges or removing molding from the bottom few feet of the doorway can buy you an extra 2 inches or so, for roughly $100, said Criner, who is also the owner of Criner Remodeling in Newport News, Virginia. But actually removing part of the wall can get pricy. "You have to think about what's going on inside of that wall," said certified aging-in-place specialist Katy Dodd, vice president of business development for Lifewise Renovations in Prairie Village, Kansas. Shifting electrical wiring, redoing parts of the flooring and purchasing a wider door can push the cost up in the range of $1,200 to $5,000, she said.
Adding an elevator is a far pricier project, with the elevators themselves ranging into the tens of thousands of dollars. MetLife estimates the cost of a stair lift runs from $3,000 to $12,000. Total project costs are tough to estimate, said Criner. It will depend not just on the elevator, but also on the configuration of the home. Still, he said, "It's less expensive to put in an elevator than it is to add a master bedroom and bath on the first floor." And you'll still have full use of the house. Per Remodeling Magazine's 2015 Cost vs. Value report, the national average for a midrange master suite addition is $111,245; an upscale one can cost $236,363.
Kevin Winter | Getty Images
Project popularity: Houzz found that 28 percent or respondents changed their kitchen layout and 6 percent changed the location of their kitchen.
What you should know: The rule of thumb in kitchens used to be a 36-inch gap between kitchen counters and islands, said Criner. Now it's more common to see 42 to 48 inches. The aging-in-place angle is creating enough space to accommodate a wheelchair, but the immediate payoff is a space where multiple cooks can easily maneuver around each other, he said. That kind of adjustment is usually done as part of a bigger kitchen remodel; per Remodeling Magazine's 2015 Cost vs. Value report, the national average for a midrange major kitchen remodel is $56,768; a minor kitchen remodel is $19,226. Going upscale? A major kitchen remodel averages $113,097.
Read MoreWhen remodeling won't help you sell your home
Pawel Libera | Getty Images
Project popularity: Thirteen percent added seated work areas, 13 percent added easy-to-reach storage and 2 percent lowered counter heights. Others updated their appliances, with 28 percent adding easy-to-operate faucets and 24 percent installing easy-to-open appliances.
What you should know: "The important thing in kitchens is to keep it flexible," said Murphy. Varying kitchen countertop heights can allow for seated or wheelchair accessible prep stations as you age; in the meantime, they work well for shorter adults and kids. Think about the accessibility of appliances and cabinets, too, Dodd said. Drawer dishwashers (roughly $600 and up, plus installation) can be a sleeker choice than simply raising the dishwasher to avoid bending over, for example, while pull-out cabinet drawers and organizers (hardware runs under $100 at most major retailers) can make it easier to access kitchenware without digging through deep cabinets.
Piovesempre | Getty Images
Project popularity: Twenty-six percent added an easy-access shower, 19 percent changed their bathroom layout and 7 percent changed the location of their bathroom.
What you should know: Bathroom projects are some of the most often done, said Murphy, with the most popular project being large "curbless" showers that can accommodate a wheelchair or simply eliminate the need to step over anything to enter. It's an improvement that pays off for younger couples, too—the larger space can look luxe and spa-like.
Walk-in tubs are becoming a less common request, said Criner. "You have to open the door, sit down … and wait for the water to fill up," he said. Then wait for it to drain before exiting. That can trigger an extra cost: widening the pipes for faster filling and draining, he said.
The cost of updating a shower or bath varies widely as part of larger remodeling projects. Per Remodeling Magazine's 2015 Cost vs. Value report, the national average for a midrange bathroom remodel is $16,724; adding a bathroom is $39,578. For an upscale remodel, those averages jump to $54,115 and $76,429, respectively.
Read MoreIs real estate really the best investment?
Sarah Bossart | Getty Images
Project popularity: Thirty-eight percent raised the height of their toilet and 24 percent added seating in their existing shower or tub.
What you should know: Comfort height toilets can make it easier for someone who is elderly or disabled to sit down and get back up. "Those are an easy swap," said Criner. It's no more expensive than putting a regular toilet in." (That can run $100 to $150 for a basic model, plus labor.) But don't assume higher is better, Dodd said. A shorter adult may actually have a tougher time maneuvering the taller fixture.
Another, pricier option: a smart toilet, which cleans and dries the user. That can be attractive for people who have mobility issues, said Dodd. Prices start at roughly $350 for a seat to retrofit an existing toilet. But installation can present other challenges, too, she said: The electric units can require a nearby plug or revised bathroom wiring.
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dc99b729d2a993cd1d04625fb8d3cde6 | https://www.cnbc.com/2015/08/03/us-markets-data.html?utm_source=wnd&utm_medium=wnd&utm_campaign=syndicated | Stocks close lower as energy, growth concerns weigh; Apple plunges | Stocks close lower as energy, growth concerns weigh; Apple plunges
VIDEO1:3701:37Pisani: Defensive market tonePower Lunch
VIDEO1:4601:46Market catches up with China: TraderPower Lunch
VIDEO3:2403:24Cashin says: Crude spills overWorld Economy
U.S. stocks closed lower on Monday, the first day of trade for August, as investors weighed mostly lackluster economic data and a renewed decline in oil, amid overseas news. (Tweet This)
"The growth picture right now is not all that encouraging," said John Caruso, senior market strategist at RJO Futures. "I think it's the data, that's the lion share of it."
"The ISM number this morning was rather alarming," he said. "That certainly raises some doubts that we are seeing expansions that economists are forecasting."
Apple fell about 2.4 percent to $118 a share, below its 200-day moving average and in correction territory.
Twitter closed down 5.6 percent, closing below $30 a share for the first time. The stock briefly plunged more than 6.5 percent to a new intraday low amid growth concerns.
Read MoreBreakdown: The Apple stock chart just got scary
Sharp declines in oil weighed heavily on stocks as U.S. and Chinese economic data indicated slower growth.
The energy sector fell 2 percent as the greatest decliner in the S&P 500. Chevron plunged more than 3 percent to lead blue chip decliners, while Exxon Mobil was off 1.45 percent.
Crude oil settled down $1.95, or 4.14 percent, at $45.17 a barrel. Brent fell below $50 a barrel for the first time since Jan. 30.
"You have weakness in the energy market.... The one positive out of today's market is the Dow Transports," said Robert Pavlik, chief market strategist at Boston Private Wealth. "It's August, it's summer, so there's sort of no reason to do any buying or selling, but if any kind of news like China happens or momentum to the downside, then there's less support for the market."
The Dow Jones industrial average closed about 90 points lower after falling as much as 193 points, while the S&P 500 and the Nasdaq Composite were about a quarter of a percent lower. The Dow transports closed 0.3 percent higher as airlines advanced.
The major averages halved gains but remained lower in late afternoon trade as the majority of stocks declined.
"The problem is if you only have a few handful of stocks leading the market, if they don't make it the market's in trouble," said Bruce Bittles, chief investment strategist at RW Baird.
He expects the major averages to remain in a trading range until they're boosted by a positive catalyst, such as an interest rate hike sometime before the end of the year.
"This is going to be an extremely busy week. We still have a third of S&P (names) to report," said Art Hogan, chief market strategist at Wunderlich Securities. "There's also going to be a plethora of economic activity."
In particular, he was watching July auto sales, which came out throughout the day. The sector has been an area of strength for the economy, he said.
The report was encouraging, posting sales at a seasonally adjusted annual rate above 17 million.
"Regardless of what's driving it, the auto sector is certainly a bright spot for the U.S. economy," said Peter Boockvar, chief market strategist at The Lindsey Group.
Bond traders, however, focused on the disappointing . The report missed expectations, coming in at 52.7 versus the 53.5 forecast. The data was scheduled to be released at 10:00 a.m. but reports surfaced before the opening bell.
The 10-year Treasury yield fell to 2.15 percent, while the held near 0.67 percent. The 30-year yield traded near 2.86 percent. The 10-year yield and 30-year yield hit their lowest levels since June 1.
"The long end is responding to lower inflation expectations, which we are seeing confirmed in the TIPS market as well," said Brandon Swensen, co-head of fixed income at RBC Global Asset Management (U.S.). "Today's weaker ISM on top of continued weakness in commodities is continuing the curve flattening momentum that we have been seeing recently."
Yields have no major impetus to move significantly higher because we have "sluggish economic growth that's going to persist for years upon years beyond the current economic cycle," said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott. He noted fairly light trading volume.
The U.S. dollar held a touch higher, with the euro below $1.09.
Read MoreJobs data big, but do slam dunk for rate hike
Personal income increased 0.4 percent in June, while personal consumption increased 0.2 percent, its smallest gain in four months.
"While spending came in a little lower, the trend remains higher," said Peter Cardillo, chief market economist at Rockwell Global Capital. "That puts us closer to a rate hike in September."
Construction spending rose 0.1 percent, the since January.
The economic reports come ahead of Friday's nonfarm payrolls report that investors will weigh carefully for the likelihood of an interest rate hike in September.
AIG and Allstate are among firms reporting after the bell.
Read MoreEarly movers: GS, PRE, SHLD, HZNP, TSN, T, NOK, HSBC, WYNN & more
European stocks ended mostly higher. However, the Athens stock index closed about 16 percent lower after opening down 23 percent in its first day of operation in five weeks.
Greek banking stocks were the worst hit with Alpha Bank, Attica Bank and Eurobank Ergasius, Bank of Piraeus and the National Bank of Greece all opening around 30 percent lower—the daily volatility limit. Similar losses were seen in other stocks outside of the banking industry as well.
Asian stocks closed lower amid falling energy prices and a two-year low on the final read for the Caixin China purchasing manager's index.
Major U.S. Indexes
The Dow Jones Industrial Average closed down 91.66 points, or 0.52 percent, at 17,598.20, with Chevron the greatest laggard and Coca-Cola leading advancers.
The closed down 5.8 points, or 0.28 percent, at 2,098.04, with energy leading five sectors lower and utilities the greatest gainer.
The Nasdaq closed down 12.9 points, or 0.25 percent, at 5,115.38.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded below 13.
About three stocks declined for every two advancers on the New York Stock Exchange, with an exchange volume of 814 million and a composite volume of 3.4 billion in the close.
Gold futures for December settled down $5.70 at $1,089.40 an ounce.
On tap this week:
Monday
Earnings: Clorox, Diamond Offshore, Allstate, AIG, Vornado Realty, Amerigas Partners, Community Health Systems, Tenet Healthcare, NextEra Energy, CAN Financial, Tyson Foods.
Tuesday
Earnings: Disney, Activision Blizzard, AXA, Aetna, CVS Health, Pioneer Natural Resources, First Solar, Zillow, Dreamworks Animation, Toyota, Archer Daniels Midland, Coach, Kellogg, Regeneron, Norwegian Cruise, Beazer Homes, Time Inc, Sprint, Charter Communications.
10:00 a.m.: Factory orders
Wednesday
Earnings: Time Warner, SodaStream, Spark Therapeutics, Wendy's, CBS, Keurig Green Mountain, Weight Watchers, Zulilly, Tesla Motors, Fitbit, Virtu Financial, Kate Spade, Lumber Liquidators, Discovery Communications, Ralph Lauren, Chesapeake Energy, Liberty Media, Motorola Solutions.
08:15 a.m.: ADP employment
08:30 a.m.: International trade
10:00 a.m.: ISM nonmanufacturing
Thursday
Earnings: Viacom, Mylan Labs, Michael Kors, AMC Networks, Duke Energy, Molson Brewing, Viacom, 3-D Systems, Wingstop, Zynga, Lions Gate, SeaWorld, NY Times, OM Asset Management, Generac, Becton Dickinson, Con Ed, EOG Resources, Mohawk, Shutterstock, Clovis Oncology, TrueCar.
08:30 a.m.: Initial claims
Friday
Earnings: Berkshire Hathaway, Allianz, Hershey, BioCryst Phama, Cablevision, Groupon, Brookfield Asset Management, Sirona
08:30 a.m.: Employment report
03:00 p.m.: Consumer sentiment
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8cd5655ce7931d6db86f1a1782a206ed | https://www.cnbc.com/2015/08/04/venture-capital-confidence-dips-to-two-year-low.html | Venture capital confidence dips to two-year low | Venture capital confidence dips to two-year low
Jason Way Photography | Getty Images
There's no tangible evidence that air is coming out of the tech start-up market, but its financiers are nonetheless expressing some concern.
According to a quarterly gauge of investor sentiment, confidence among venture capitalists dropped to a two-year low in the three months ended June. Sky-high valuations continue to be an issue, and economic rifts around the globe are increasingly on investors' minds.
"Uncertainty over the entry of new types of investors, the rising cost of doing business in Silicon Valley and the potential fallout of macro environment issues (e.g., China, E.U.) also gave pause to some venture investors," according to the second-quarter Silicon Valley Venture Capitalist Confidence Index, released on Tuesday.
The index, based on a June 2015 survey of 28 Bay Area venture investors, scored a 3.73 out of 5, declining from 3.81 in the first quarter and reaching the lowest since the first three months of 2013. Confidence now sits at its 11-year average, the report said.
Read MoreWhy one veteran VC is investing despite seeing a bubble
Still, fundraising has yet to show any sign of slowing. In fact, venture investors poured $17.5 billion into start-ups in the second quarter, the most in any period since the dot-com bubble in 2000, according to the National Venture Capital Association.
And investors interviewed for the confidence index showed plenty of optimism. The talent in tech, increased number of funding sources and penetration of technology into every industry were some of the reasons given.
For the skeptics, Allegis Capital's Bob Ackerman summed up the myriad concerns.
"The unprecedented fundraising and valuations associated with so-called `unicorns' and the knock-on effects for the venture ecosystem in terms of broader market expectations around valuations, compensation and all aspects of the costs of doing business for venture companies gives reason for substantial pause," he said in the report. "Expectations are beginning to outpace reality."
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9b28cd8bfe9e1e7a03d2fde9182c92d4 | https://www.cnbc.com/2015/08/05/art-ups-are-closing-the-gender-gap-decide-that-it-matters.html | How tech start-ups are closing the gender gap | How tech start-ups are closing the gender gap
Source: ZestFinance
When it comes to diversifying tech, some start-ups are ahead of the curve.
The announcement Wednesday that for employees who become parents underscores a shift underway in Silicon Valley: The effort to attract, and keep, more female employees.
Many established companies have had a hard time with this. Yahoo's 2015 diversity report showed that only 16 percent of its technology jobs and 24 percent of its leadership positions are staffed by women. Reports from companies such as Facebook (16 percent women in tech jobs, 23 percent in leadership) and Google (18 percent women in tech jobs, and 22 percent in leadership) don't look much better.
One start-up, ZestFinance, based in Los Angeles, decided to make closing the gender gap a priority. The 80-person staff is 42 percent female, with 33 percent of its tech engineering staff and 40 percent of its leadership team staffed by women.
Read More Yahoo highlights Silicon Valley's diversity problem
"What really has allowed Zest to kind of attain this level of women in the workplace is that we approach it from the perspective of going past the numbers," said Sonya Merrill, Zest's chief people officer. "We really look at it in terms of 'Yeah, the numbers are great, but the numbers are not enough.' You really have to bake it into the company to make it work."
Zest follows four different principles in hiring to ensure they're recruiting a diverse employee base.
Source: ZestFinance
First, Merrill says Zest tries to diversify for "the right reasons": "Diversity is really key to winning. When you have diversity in your employee base, you get more diverse perspectives, more diverse conversation," she said. "And when you have better outcomes on a whole, your entire business is better."
Second, Zest's hiring practice aims to get women and minorities in the door: "Everybody has to be on the same page in terms of understanding that we are looking for people who don't look like us," said Merrill, whose husband is the company's founder and CEO.
Read More
Third, the company aims to have a supportive corporate program, Merrill said. "All people want to work at a place where they are valued," she said.
Performance reviews are not just based on what an employee accomplished that year but also on how the employee completed the tasks: Did he or she uphold the company's core values?
All people want to work at a place where they are valued.Sonya MerrillChief People Officer at ZestFinance
"You can get great results by being a jerk," Merrill said. "At Zest, you could get the best results in the world but if how you got there doesn't uphold our values, you won't get those great results."
Lastly, the company tries to have competitive benefits. They also offer fertility benefits in their health-care package and six months' maternity leave. Paternity leave and unlimited vacations days are also provided, in addition to in-house manicures, pedicures and massages.
Read More7 tips for your performance review
"The most important thing that a company can do is recognize that working moms actually have two full-time jobs," Merrill said. "And the one they do at home is more important than the one they do at work."
Heidi Kim, senior product manager at Zest, just celebrated her one-year anniversary with the company. Before joining Zest, she co-founded a food tech start-up and graduated from Harvard Business School.
So when Kim arrived at Zest, she had a bit of culture shock. She wasn't used to a culture that encouraged taking time for your family or taking vacation time.
"I remember being kind of surprised that people were actually using their unlimited vacation and that it was a part of the culture here," she said. "I don't know anyone else who works in a place where both men and women are encouraged to take care of their families first."
The LinkedIn building in Mountain View, California.Source: Katherine Walton
The more established LinkedIn is taking a different approach, launching a Women in Technology initiative with multiple task forces to improve the gender gap.
"Each task force has a (female) leader, and a team of volunteers around the organization," said Caroline Gaffney, director of product management at LinkedIn and a current team leader for the Women in Technology program. "What we did was a similar process to how we do product development."
In its 2015 diversity report, LinkedIn reported that 18 percent of its technology jobs and 30 percent of its leadership positions are staffed by women, up from 17 percent and 25 percent respectively in its 2014 report.
Read More LinkedIn VP: Gender equality can help firms
The four task forces in the program focus on culture, empower, attract and community. Each one hosts tech talks, workshops and mentor events on a regular basis for employees to participate in.
Nicole Leverich, LinkedIn's director of corporate communications, said the program has been in place for a couple of years now, but it wasn't until the end of 2014 when the program gained new momentum.
Since then, the company has focused more on quarterly goals for diversity initiatives, including more men in the conversations and recruiting more employee volunteers to dedicate at least 20 percent of their time per quarter to the initiative.
"In order for women to be successful at LinkedIn, men need to be a part of the team," she said.
Read More Silicon Valley 'needs guidance' to boost diversity: Entrepreneur
Yet despite the change in focus in the past year, the company has yielded little change in its demographics.
"Any kind of positive growth is great," Gaffney said. "This takes time, and it's not going to happen overnight, so the overall goals are a long-term vision."
Beth Bernhardt, lead manufacturing technician at Other Machine Co., discusses the results of a QC bed test, the last thing each Othermill product undergoes before being shipped to customers.Katie Wilson | Other Machine Company
In San Francisco's Mission District is another company achieving a diverse workforce.
At Other Machine Co., a hardware company, the total 23-person company is 52 percent female, with a technology staff that is split 50 percent between women and men.
Danielle Applestone, CEO of the 2-year-old start-up, said the only thing her company did to attract more female candidates was simply recruit more women.
"You have to make sure that your job descriptions aren't discriminatory towards anyone," she said. "Once we bring people into the process, we find people who are balanced who are aware of how important it is to have teams of different types of opinions on them."
Read More The growing case for diversity as a profit source
Certainly, having a female founder contributes to the company's success rate when it comes to recruiting women, Applestone said, but the company also strives to create a more inclusive environment for everyone.
"We don't have any jerks," she said. "We also make sure that people don't get interrupted, and if they do it's like, 'OK, let's rewind, let's give this person time to speak,' and things like that."
That's number one, decide that it matters to you. Any company could do what we do if they decide that it matters.Danielle ApplestoneCEO of Other Machine Company
Other Machine Co. builds a portable desktop CNC mill that allows customers to create 2-D and 3-D objects out of durable materials, such as wood, metal and plastic, using digital designs.
"We make a product that is used by people from all different backgrounds," Applestone said. "Two or 3 percent of all CNC machine operators are women, and I was like, 'Wait, why?' It doesn't require crazy upper body strength to run these machines."
Read MoreGoogle still searching for workplace diversity
And for the company, retention is just a matter of providing a challenging and welcoming work environment for employees.
"We are small, and we can't afford to pay you what Google pays," Applestone said. "So we need to make up for that pay cut with something else."
Applestone says that diversifying its workforce is all about the mindset of top leadership.
"That's No. 1: Decide that it matters to you," she said. "Any company could do what we do if they decide that it matters."
Source: 6sense
At San Francisco-based 6sense, CEO Amanda Kahlow treats everyone like family, which helps to create an inclusive environment.
"It's not all about the code, but it's also about the person," she said.
Walk into the 2-year-old company's loft-style offices, and you might be confused as to where you are.
Calvin, Kahlow's Burmese mountain dog mix, will run up to greet you. The snack closet will be overflowing with pita chips and other healthy snacks, and the female restrooms will be stocked with feminine products.
Read More Why tech loves quirky, old buildings
When first designing the space, Kahlow said she heard concerns that it might not be corporate enough for the clients. Kahlow didn't care.
"I'm building a place where people want to come and feel supported, and this is where they spend 99 percent of their time, so I feel like we're building a home and a family," she said.
6sense CEO Amanda Kahlow and her dog, Calvin, in the office.Source: 6sense
Among its 46 employees, the company is 40 percent female, with 26 percent of its technical jobs staffed by women.
"It's also about men wanting and embracing and embodying their feminine, just like how I embrace my masculine in my leadership," she said. "We have masculine and feminine traits."
On the day before New Year's Eve, Kahlow asked the entire office to come in from 8 a.m. to noon to engage in meditation. No one was required to participate, but everyone did.
Read MoreManaging workplace stress through meditation
She was worried it would backfire. But, afterwards, about six people cried as a result of personal discovery.
"Teaching people how to care about themselves and then each other is, I think, what makes women want to work here," she said. "It's the empathy and the heart and the compassion."
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82ed9f470ebd3f3e1a221b11cf828789 | https://www.cnbc.com/2015/08/05/smarter-credit-cards-befuddle-small-businesses.html | Smarter credit cards befuddle small businesses | Smarter credit cards befuddle small businesses
Credit cards with EMV chips.PhotonStock | Getty Images
More than half of small businesses that accept point-of-sale card payments are not aware of a major change in chip-card liability coming Oct. 1, according to Wells Fargo's quarterly small-business survey.
New EMV chip technology rolling out in the United States is designed to protect in-store payments by generating unique, one-time codes for transactions. It's supposed to cut down on hacks and credit-card fraud. But card issuers and merchants who do not pay to upgrade their point-of-sale systems to accept the new chip cards will assume liability for any fraudulent transaction after Oct. 1.
In the big hackings of years past, think Target and Michael's, the banks have been pretty much on the hook for their customers' losses. But, with the smart-cards on offer, the banks are putting the liability on businesses.
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Only 49 percent of respondents on the Wells Fargo survey even knew about the pending liability shift. Some 31 percent of those who are in the know say they have already adapted systems that accept chip-enabled cards; another 29 percent say they intend to install a new system by the shift date; and 34 percent reported that they would eventually upgrade their systems.
About a fifth of those who are aware of the shift don't plan to make any changes. The reasons cited included: not being concerned about the liability shift, not wanting to pay to upgrade their terminals, and not believing the terminal would impact their business.
"While our industry has made great progress in the last year informing and preparing small business owners for the EMV liability shift, the survey findings show us that we have more work to do," said Debra Rossi, head of Wells Fargo Merchant Services, said in a statement.
Smart debit and credit cards are already widely used in Europe.
Major retailers such as Target, Home Depot, Staples and CVS have been victims of data breaches in the last year. USA Today reported last year that more then 43 percent of companies experienced a data breach between 2013 and 2014.
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80fc5f4086983208946e23fc817307af | https://www.cnbc.com/2015/08/06/chicken-rice-durian-rojak-and-more-the-best-loved-tastes-of-singapore-for-sg50.html | If you come to Singapore, you gotta eat this ... | If you come to Singapore, you gotta eat this ...
Lau Pa Sat Food Center in the Central Business District of Singapore.Getty Images
Singapore's thriving gastronomic culture will come as no surprise to anyone familiar with the city-state. Most locals' social activities revolve around food and Singaporeans are relentless in their efforts to find the best and newest dishes. But it is old-school fare, originating from around Asia in a reflection of Singapore's rich cultural diversity, that occupies a permanent spot in the hearts and stomachs of the Lion City's people. Here are ten of Singapore's best-loved dishes.
Hainanese Chicken Rice.Getty Images
Hands-down Singapore's most famous dish, Hainanese chicken rice is a version of Hainanese "Wenchan chicken," a boiled chicken dish, eaten with a dip made of spices from Hainan, China, and adapted by early immigrants from southern China.
The main ingredients are steamed or roasted chicken, rice and a clear chicken broth. Some might argue that the measure of the chef's prowess is the rice. Deceptively simple in appearance, the authentic flavors are hard to master, as celebrity chef Gordon Ramsay would know.
In a highly publicized cook-off in 2013, Ramsay's attempt at chicken rice lost to Foo Kui Lian's, owner of the popular Tien Tien Hainanese Chicken Rice restaurant chain.
Fishball noodles.Getty Images
Mee Pok is a local noodle dish, served with either fish balls (Yu Yuan Mee Pok) or mushrooms and minced meat (Bak Chor Mee Pok). Thick, flat wheat noodles are blanched in hot water before being tossed into a mixture of chili, oil, vinegar, soy sauce and pepper.
For diners lacking Singaporeans' casual tolerance for spicy tastes, tomato ketchup can substitute for the chili.
Chai Tow Kway (Fried carrot cake).Getty Images
This one catches out every visitor, because the savory dish is neither a cake nor made of carrots.
White rice cakes made of a radish and rice flour mixture are marinated in fish sauce and dark soya sauce, before the dough is cubed and fried with eggs, oysters and prawns.
Laksa Lemak.Getty Images
Laksa is a thick sauce (known as gravy) and noodle dish with fish cake, prawns, cockles and bean sprouts added. This dish is of Peranakan origin. Peranakans are the ethnic Chinese who settled in the group of British territories located in Southeast Asia, and adopted certain aspects of Malay culture. There are two main variations of the dish, characterized by different soup bases.
The first is Laksa Lemak - white noodles served in a spicy and creamy broth, heavy with coconut milk. It is also known as Katong Laksa because of the concentration of Laksa restaurants in the Katong area of Singapore. The second version is Assam Laksa, with a tangy, fish-based broth, served with lots of fresh mint leaves.
This dish can also be found in Malaysia, typically in areas with high Peranakan populations, such as Malacca or Penang.
Nasi Lemak.Getty Images
Nasi Lemak is regarded as Malaysia's national dish and its popularity in Singapore harks back to the period in the city-state's history when it was a part of British Malaya.
The dish is composed of fragrant rice steamed with coconut cream, deep-fried fish or chicken wings, a fried egg and sambal (a chili condiment). Garnishes include sliced cucumbers, peanuts and fried ikan bilis (anchovies).
It is a popular breakfast option that is sold by both the Chinese and Malay food stall operators, known as hawkers, who cook it using numerous variations of the different components .
Rojak.CNBC
Rojak is Malay for "mixture." This traditional tropical salad consists of bean sprouts, deep-fried soybean cake (tau pok), fried flour strips (you tiao), turnip, pineapple, cucumber and chopped roasted peanuts. The salad dressing is a sweet and spicy fermented prawn paste that can take some getting used to.
Satay, with Kutupat and peanut sauce.Photographer | Collection | Getty Images
Satay originated from Arab traders who traded in Southeast Asia in the 15th century, and was adopted into the Malay cuisine.
The meat skewers are barbecued over a charcoal fire, and served with a side of fresh onions and cucumbers, ketupat (Malay rice cakes wrapped in a weaving pattern of coconut leaves) and a sweet peanut sauce.
Getty Images
Roti Prata -- Roti is malay for "bread" and Prata or Paratha means "flat" in Hindi -- is a fried pancake served with sugar or curry. It is ubiquitous around Singapore, sold mostly by Indian Muslims at coffee shops or hawker centers and commonly eaten at breakfast or as a late-night supper.
The prata-making process is a delight to watch - the cook twirls the piece of dough in a circular motion until it thins out, before it is folded into a multi-layered pancake that is then fried on a griddle.
Kaya Toast.Glenn Koenig | Los Angeles Times | Getty Images)
Kaya (coconut jam) toast is a breakfast or tea staple in Singapore. Kaya is generously spread on crust-less bread slices along with a dollop of butter.
It is generally ordered in a set with the local coffee and soft-boiled eggs, which the kaya toast is dipped into.
Durian fruit.Getty Images
Although this is technically a fruit, durians are a must try when in Singapore. Be warned though, to say it is an acquired taste is an understatement.
"A rich custard highly flavored with almonds gives the best general idea of it, but there are occasional wafts of flavor that call to mind cream-cheese, onion-sauce, sherry-wine and other incongruous dishes," wrote Alfred Russel Wallace, a British naturalist in his 1869 book "The Annotated Malay Archipelago."
Nicknamed the "King of Fruits," the odor of durian is so overwhelming and penetrating that it has been banned in most public spaces, hotels and modes of transport in Singapore.
The architecture of the Esplanade – Theaters on the Bay, a performing arts center in Singapore, was inspired by the fruit's thorny shell.
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48ccdf982559b6f2ff76b299664243d0 | https://www.cnbc.com/2015/08/07/craft-beers-get-heavy-on-the-alcohol.html | Craft beers get heavy ... on the alcohol | Craft beers get heavy ... on the alcohol
Beers with high alcoholic content, L-R: Samuel Adams Thirteenth Hour, The Lost Abbey Inferno Ale, Samuel Adams Tetravis, and Samuel Adams American Kriek.Source: Samuel Adams | Lost Abbey
American's taste for beer has historically leaned to the lighter side, with lagers taking over the country in the 19th century in a trend that has continued to the even lighter American staples such as Budweiser and Pabst Blue Ribbon that hold a majority of the market to this day.
But craft beer, whose sales grew 22 percent to $19.6 billion in 2014 and continued a four-year streak of double digit growth, is driving a sea change in American palates with heavier doses of alcohol.
"As craft beer was growing, it seemed that ABV (alcohol by volume) grew with it," said Justin Dolezal, beer buyer for Buzz Wine Beer Shop in downtown Los Angeles.
Consumer research group Mintel found that the amount of beers released with more than 6.5 percent alcohol by volume increased by 319 percent in North America from 2011 to 2014, with 46 percent of new beer releases falling into this category. The average alcohol content of craft beer is 5.9 percent A.B.V.
And the real heavyweights, beers with over 8 percent ABV, also saw a noticeable uptick in 2013 and 2014. Across the globe, those beers made up 12.9 and 11.7 percent of new releases during each of those years, respectively, after only making up 7.4 percent of new releases in 2012 and 6.2 percent in 2011.
"Drinkers today have more sophisticated palates than drinkers generally did years ago and they're constantly looking to explore unique, high-quality beers," said Jim Koch, founder of Boston Beer Co., the entity behind Samuel Adams.
And more breweries are rushing to compete by putting out their own high-alcohol craft beers, for which they can charge a premium price, nearly as much for 750 milliliter bottle as they charge for a six-pack of regular craft beer. It doesn't hurt, too, that the heavier beers have a longer shelf life.
Samuel Adams UtopiasSource: Samuel Adams
Take, for example craft breweries such as Lost Abbey and Evil Twin Brewing Co. They have been emboldened by what they see as a shifting American palate, and are releasing more and more of the in-vogue, high-alcohol content beers like double and triple IPAs, export stouts, Belgian-style beers and imperial ales, that have become popular with the growing craft beer movement.
Lost Abbey, a division of Port Brewing Co. based in San Marcos, Calif., makes predominately barrel-aged beers that clock in around 9 percent ABV and up. It has grown at an average of 10-15 percent in sales since opening in 2006, said head brewer Tomme Arthur. Evil Twin Brewing, based in Brooklyn, N.Y., makes a healthy roster of beers in a similar range, and its sales have doubled every year since it opened in 2010.
Large craft companies such as Boston Brewing and Anchor Brewing are even joining the move, rolling out new lines of stronger beers in 2014-15.
Since Koch's company released Samuel Adams Triple Bock (17.5 percent ABV) in 1994, the company has expanded its line of Extreme Beers to include the upwards of 20 percent ABV Utopia series and the more recent, Belgian-inspired Barrel Room collection (the Thirteenth Hour stout clocks in at 9 percent ABV). This year Samuel Adams rolled out Rebel Rouser, a double IPA that clocks in at 8.4 percent ABV, though it was partnered with a session-style cousin, Rebel Session IPA. (4.5 percent), for its release.
Koch, like Lost Abbey's Tomme Arthur, believes that American beer drinkers are moving to appreciate craft beer like wine, drinking it more appreciatively and reservedly rather than with consistent and mechanical elbow rotations spanning an arc from counter to lips. Arthur noted that it is now common for people to bring a bottle of beer as a gift to a friendly dinner or wedding, and Koch said he believed more and more consumers are learning to appreciate the beverage with food.
How Anchor Brewing changed the beer business
Another factor causing the shift was the establishment and proliferation of the darling style of the craft beer movement, the American IPA, which has brought a taste for hops to America that has only increased with time. American IPAs, coincidentally, bear higher alcohol percentages usually between 6 and 7 percent. Double and Triple IPAs, which were invented to jack up hop contents to match consumers' increasing taste for the bittering addition, have even higher alcohol content.
"I think that with these higher-hop IPAs, alcohol just seems to go hand in hand with public demand," said Mark Carpenter, Anchor Brewing Co.'s brewmaster.
Anchor Brewing Co. became America's first craft brewery when Fritz Maytag acquired the facility in 1969, and has since produced the first modern IPAs, barleywines and porters brewed on American soil. Despite its age, the brewery is still proving that it is at the forefront of the brewing game.
This year, Anchor began releasing its Argonaut series, a limited line of four-pack beers in styles that tend towards high-alcohol content. So far, the line has consisted of a foreign export stout, Flying Cloud, at 7.4 percent, and a double IPA, Double Liberty, at 8.2 percent.
"Generally speaking, we don't do high-alcohol beers," said Carpenter, who has been with the brewery since 1971. Anchor's classic beers include Anchor Steam, a California common lager, and Liberty Pale Ale, both of which clock in at around 6 percent ABV.
In October, Anchor will release the third iteration of the Argonaut collection, a blended and barrel-aged American strong ale-style beer.
"We're keeping up with the times," Carpenter said.
But not everyone chocks the change to more sophisticated palates:
"There will be some people that will just look at the beer list and look for ABV," said Bob Grande, who tends bar at the Wurstkuche beer garden in Los Angeles' Arts District.
Grande said that he'll often try to point those sort of drinkers away from the 12 percent Aventinus Eisbock on Wurstkuche's menu, instead directing them toward a more approachable La Trappe Quadrupel (10.5 percent ABV), which also comes in a smaller serving size than the Aventinus.
"I know what'll end up happening if they get the Eisbock," he said with a sigh.
The difference between those two archetypal high-ABV drinkers, according to Grande and the other beer experts I interviewed, is the approach: Grande and Dolezal from Buzz both said that people who enjoy those beers for taste are often interested in styles of beer in which high alcohol content is a coincidence. They will also drink more reservedly, as Arthur and Koch noted in their likening of craft beer's evolution towards wine.
"We always feel that the notion, from the consumer basis, that a lower-alcohol beer should make you want the next one … at the higher strengths, that rarely is the same," said Arthur. "It's about the flow, appreciative, contemplative kind of drinking, really appreciating the flavor and spending time with it."
"We don't sense that most people buy them for having three beers in a row. They're going to have half the bottle, splitting it with a friend," he continued.
Brewers, too, are pushing the change. Arthur said that higher alcohol contents allow him more flexibility in his brewery's barrel-aging process due to the sturdiness it gives the beer, and he and other brewers noted that high alcohol volume tends to embolden flavors and change the feel of the mouth.
Craft beer growth posts solid numbers ... again
The ability of high-ABV beers to keep also helps offset the costs of the smaller quantities in which they are produced and sold, a facet that owes itself to the difficulty of making good high-ABV beers and the smaller amounts in which they are typically consumed.
But is the session beer dying? Not quite yet, it seems.
"It's true that imperial lagers and such are turning popular, for a brewer it's fun to take a traditional style and make it your own," said Jeppe Jarnit-Bjergsø, owner of Evil Twin Brewing.
The higher alcohol ceiling, he continued, allows brewers to craft more nuance into their beers. Evil Twin's signature Mosaic Single Hop Imperial India Pale American Wheat Lager (try saying that after drinking two of them), for instance, has nuances of fruit and citrus that one wouldn't find in a traditional lager. While those typically clock in at around 4 or 5 percent ABV, the MSHIIPAW sits at 8 percent.
"The trend right now is actually to turn traditional styles around. You make beers with normally low ABVs higher, and you make bigger beers smaller, like session IPAs," said Jarnit-Bjergsø.
Evil Twin's Citra Sunshine Slacker, a citrus-forward IPA of only 4.5 percent ABV, is an example of the other side of Jarnit-Bjergsø's trend description. One Beer Advocate reviewer described it as going "easily down the throat" with "subtle grapefruit notes all the way to the bottom."
Anchor's Carpenter, who has watched American craft beer evolve since its beginnings, said the trending of styles with higher and lower alcohol contents works much like a tide.
"At some point it might start back the other way," Carpenter said.
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702446fde5898930c093317652ffc0eb | https://www.cnbc.com/2015/08/07/vcs-see-a-bubble-in-food-delivery-services.html | VCs see a bubble in food delivery services | VCs see a bubble in food delivery services
VIDEO1:2601:26App indigestionSquawk Alley
Just this week, I used Instacart to order groceries, and I'll probably order dinner from Munchery tonight. But I could have also ordered food right to my door from Postmates or DoorDash, and that broad range of choices could be the sign of a bigger problem: Even venture capitalists who are fans of online food delivery say this market appears over saturated.
The latest casualty is Good Eggs, a food delivery start-up that announced this week it is closing operations in all cities except San Francisco.
What went wrong? In a blog post, CEO Rob Spiro wrote that he didn't fully appreciate the challenges of building out his business.
"The single biggest mistake we made was growing too quickly, to multiple cities, before fully figuring out the challenges of building an entirely new food supply chain," he wrote.
Such stumbles haven't deterred venture capitalists from committing capital to this sector. According to CB Insights, food start-ups have raised over $750 million this year. That's after more than $1 billion in investments last year.
The food tech category includes a range of companies from food delivery such as Instacart and Postmates; food replacements like Hampton Creek Foods and Soylent; and restaurant tech like Reserve.
Some analysts argue that this market has now become crowded, and is poised for consolidation.
"Food delivery is kind of the flavor of the month right now in investment land," said Anand Sanwal, CEO of CB Insights. "In the past, it was daily deals, subscription e-commerce or whatever. I think there's definitely going to be some casualties within food delivery, without a doubt."
Still, Americans spend an estimated $70 billion a year on food takeout and delivery, with $9 billion of that total ordered online. So it's no surprise that many venture capitalists believe this is a market where they need to place strong bets.
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Ajay Chopra, general partner at Trinity Ventures, says food delivery start-ups are capitalizing on pronounced changes in how consumers work and live. That's one reason he's bullish on the sector.
"Cooking and preparing food is a problem for two-income families with very busy lives," Chopra said. "The older model of going to a grocery store and cooking doesn't suit the lifestyle of many people working today. These food delivery start-ups, from Instacart to Munchery, are attempting to solve this problem."
Chopra's firm, for instance, has invested in a start-up called EAT Club, a corporate catering service that counts Tesla and Netflix among its customers.
But Chopra also said that investors need to be very selective when putting money to work in this space. The profit margins of companies working in food delivery are razor thin, so he only looks to invest in start-ups boasting smart, disciplined management teams, a strong operation and a clear pathway toward profitability.
Those start-ups concentrating on just attracting more VC funding and scaling the business as quickly as possible are poised for disappointment.
"We fund companies that are working toward a business model that gets them to profitability," Chopra told CNBC. "Even venture money will ask at some point, 'Where are the profits?'"
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04d9de669af09ebca560b70f0fdf8d51 | https://www.cnbc.com/2015/08/07/your-first-trade-for-monday.html | VIDEO1:2701:27Your first move for Monday Fast Money
The "Fast Money" traders gave their final trades of the day.
Brian Kelly was a buyer of .
David Seaburg was a seller of NVDA.
Steve Grasso was a buyer of FIT.
Guy Adami was a buyer of NVDA.
Trader disclosure: On August 07, 2015, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Grasso is long AAPL, BA, BAC, CC, DD, DECK, EVGN, FIT, KBH, MJNA, MU, PFE, PHM, T, TWTR, GDX. His kids are long EFA, EFG, EWJ, IJR, SPY. His firm and some of its partners are long NEM, LYB, WDR, SHLD, STRP, UDR, ACI, AVP, TEX, CLI, TWTR, WYNN, PCRX, AXP, FNMA, SALT, AMD, CUBA, HSPO, ICE, AMZN, FCX, IBM, KDUS, KO, MAT, MCD, MJNA, NE, NEM, OXY, RIG, STAG, TAXI, TITXF, TSE, VALE, ZNGA. Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck. Brian Kelly is long BBRY, BTC=; ITB, TAN, TLT, TSL, the VIX, GDX call spread, TWTR call spread,US dollar; he is short DAX, Yuan and Yen.
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99b1aaedff4c8b49a69ca34e7cbaf86b | https://www.cnbc.com/2015/08/10/cramer-remix-googles-reorg-anything-but-cosmetic.html | VIDEO1:0701:07Cramer: GOOGL's rearranging the alphabetCramer Remix
Just when it seemed that the market was stuck in a nightmare that wouldn't end, the averages finally managed to rally on Monday. And of course, Jim Cramer took a close look at the big moves of the day to put the pieces together as to what triggered the rally.
Additionally, Google announced that it is reorganizing into another entity called Alphabet on Monday night. While some may think that this reorganization is just a cosmetic one, Cramer disagreed.
"I bet Ruth Porat, the new CFO...suggested this bit of financial engineering because it basically separates the Google media business from all of that venture capital it supports so Wall Street—the language she speaks—can better understand this entity as the holding company that it really is," Cramer said.
The rally came down to a few reasons for Cramer. First, stocks were radically oversold going into Monday's session. When stocks are that low for that long eventually sellers realize that they will destroy stocks if they keep selling them, so the buyers stepped up to the plate.
Second, China was both horrible and amazing. Chinese export data that was released over the weekend was terrible, but then the Chinese market rallied hard, up 4.9 percent. The horribly soft data gave investors the impression that maybe the Chinese government will do more to prop up its economy.
"They think their government's using some of the proceeds from the U.S. Treasurys they have been selling—$200 billion worth—in order to buy stocks to the point where the vicious head and shoulders pattern in the Shanghai Composite can't be broken, don't laugh," Cramer said.
Third, Warren Buffett made a massive $37.2 billion acquisition when he purchased Precision Castparts. Cramer was happy that this occurred, as any time Buffett does something bullish he tends to rule the market for a day or two.
"The fact that Precision Castparts is a gigantic industrial and the industrials have been sold willy-nilly in this market should not be lost on people. Buffett clearly thinks the pessimism about these behemoths is way overdone, or he wouldn't be buying one," Cramer added.
Read More Cramer: Buffett magic? 10 reasons why we rallied
Warren Buffett, chairman of Berkshire Hathaway Inc.Adam Jeffery | CNBC
Before anyone gets caught up in the euphoria of Monday's rally, Jim Cramer warned not to get too excited. Any opportunity that lingers in the market will certainly not be derived from Monday's action.
"I suggest you take a breath and do some thinking, because I bet this move will reverse itself later this week," the "Mad Money" host said.
Instead, Cramer thinks it is best to look in his favorite place for new ideas—the list of stocks that hit a 52-week high from last week.
Excluding stocks of companies that were acquired, Cramer saw an amazing coincidence. There were exactly 60 new highs and 60 new lows, and most were somehow related to oil and gas.
"I think this was a countertrend day, and the themes that dominated last week will reassert themselves going forward," Cramer said.
Read More Cramer: Rally will reverse—rare chance to buy this
Another stock that was up big time on Monday was Inovio Pharmaceuticals, when it roared 26 percent in a single session. This surge was based on the news of a major partnership with AstraZeneca that could be worth as much as $700 million in future milestone payments.
Inovio is a small, development stage biotech company with a compelling proprietary immunotherapy platform and cutting edge vaccine technology. Essentially it creates fragments of DNA that inject into cells to produce targeted antigens, which help an immune system fight disease such as cancer.
Could this stock fly higher? To find out more about what Inovio has in the pipeline, Cramer spoke with its CEO Dr. J Joseph Kim.
"What makes Inovio different and unique and perhaps better, is our ability to generate these specific t-cells in the body. So we are generating these killer t-cells, professional killers and Navy Seals, that can seek out these cancer cells in the body specific to the cancer types better than anyone else out there," Dr. Kim said.
Getty Images
After the bears caused some serious damage to the averages last week, Cramer also thought it would be prudent to take took a close look at last week's 52-week low list.
"This list is all about the horrendous decline in oil that we got a brief reprieve from today. But I don't expect this reprieve to last, and the weakness here will take on mammoth proportions if crude takes out the $43 market where it bounced twice this year," the "Mad Money" host said.
In fact, Cramer thought the best opportunity out there could be to use the strength of the oil bounce to lighten up your portfolio from oil names that made the 52-week low list. After all, those stocks made that list for a good reason.
But that doesn't mean there are no stocks worth looking at on the list.
And even as some moves seem like they will be on the downside, Cramer found a few opportunities. Mainly, he thinks that these stocks are unlikely to be on the low list a year from now.
Read More Cramer: Rubble stocks ready to explode higher
And on a day where stocks rebounded like crazy, Cramer thought it would be worthwhile to circle back one once red hot stock that has taken a serious beating, Radius Health. This is a development stage biotech that is focused on creating drugs that treat osteoporosis and other endocrine-mediated disorders.
What seems strange is that Radius reported last Thursday, and the stock plunged to $68 from $76 because the company a larger than expected loss, along with elevated research and development expenses. This is totally nuts to Cramer because the company is a development stage biotech, which means it doesn't have any products on the market—thus the quarterly results don't typically have an impact.
So could this pullback be an opportunity on weakness, or is there something more hidden under the surface for Radius? To find out, Cramer spoke with its CEO Robert Ward.
"We are talking with partners today, we are a development engine. We finished a successful phase three program, we are getting ready to submit but we would like a partner that is also an expert on commercialization to work with us to commercialize abaloparatide around the globe…we also have a pipeline. Most biotech companies don't necessarily have more than one big idea," Ward said
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
Enterprise Products Partners: "Look, I'm going to tell you that this group is way overdone on the downside and that EPD is the best of the lot. That is not a strong endorsement of whether it is going to go up now. But I am going to tell you that I do like the stock because it's a premier master limited partnership and all of those are heavily under water right now."
Dave & Busters: "That is a very, very hard business. They are really the only guy that has made a success of it. They came public again and they came up and they're doing a good job and I am going to endorse Dave & Busters."
Read More Lightning Round: The best of the pipeline stocks
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38b05298242e0a9aae43680d88301847 | https://www.cnbc.com/2015/08/10/to-invest-like-buffett-follow-the-supply-chain.html | Warren Buffett, chairman of Berkshire Hathaway.Lacy O'Toole | CNBC
Berkshire Hathaway, the conglomerate owned by Warren Buffett, announced plans on Monday to buy aircraft equipment make Precision Castparts in an all-cash deal valued at $37.2 billion.
Buffett told CNBC's "Squawk Box" Monday he decided to purchase Precision during the Allen & Co.media conference last month in Sun Valley, ID.
Read MoreWarren Buffett's $37 billion bet
"This is right up there at the top" of expensive deals, Buffett said. "This a very high multiple for us to pay."
Shares of Precision climbed more than 19.15 percent Monday.
Founded in 1949, Oregon-based Precision supplies equipment for the oil and gas industry and makes components for Airbus and Boeing.
Value manager Jamie Cox at Harris Financial owns the stock and remains bullish on the company. He told CNBC's "Power Lunch" the decision to buy the stock boiled down to one simple reason.
"Follow the supply chain," Cox said. "Think about the number of airplanes sold around the globe, Castparts is absolutely the place to be if you are thinking airplanes will be sold around the globe. You see enormous amounts of planes bought, this is where you want to be if you believe that story."
VIDEO1:3401:34A buy for BuffettPower Lunch
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bab8a2536d9bf8f654e42aba45b281df | https://www.cnbc.com/2015/08/11/burger-king-puts-new-spin-on-chicken-fries.html | Burger King puts new spin on Chicken Fries | Burger King puts new spin on Chicken Fries
VIDEO0:3600:36Burger King spices up their menuRestaurants
How far does the Chicken Fries frontier stretch? Burger King intends to find out with a new take on its popular breaded white meat strips.
Touted as the chain's spiciest item yet, Fiery Chicken Fries are seasoned with a mix of black pepper, cayenne pepper and other savory spices to piggy back off of increased interest in spicy foods. The limited-time item, which is available in participating restaurants now, has a recommended price of $2.89 for nine pieces.
The spicy version also cater to a key group in the restaurant industry: millennials. This same demo's social media posts helped persuade Burger King to bring Chicken Fries back to the menu after it originally shelved the item in 2012.
Fiery Chicken FriesSource: Burger King
Since their reintroduction last year, Chicken Fries have helped drive sales at the chain. After their return sparked even more social media buzz, the brand mined the posts for a new idea.
Read More Why McD's breakfast timing may be bad
"We said that's not enough. We need to continue to innovate, continue to do more," said Eric Hirschhorn, chief marketing officer North America for Burger King, during a media event announcing the product.
After noticing customers were craving something that was really spicy, Burger King began developing what would become the Fiery Chicken Fries.
Read More Shake Shack jumps 10% after topping estimates
During testing, employees tried thousands of Chicken Fries before settling on the current version to find a balance between something that was spicy and something that wasn't so spicy that customers would never want to eat it again.
"There's no fooling people anymore, and if you underdeliver on products that you call spicy, for example, people are going to call you out on it," Hirschhorn said.
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565b4c0a466eb7b42b16c3c8832adbae | https://www.cnbc.com/2015/08/11/no-china-blame-flat-is-the-new-up-goldmans-kostin.html | No China blame; 'flat is the new up': Goldman's Kostin | No China blame; 'flat is the new up': Goldman's Kostin
VIDEO3:1503:15THIS drives US economy, not China
The decision from the People's Bank of China (PBoC) to devalue its currency caused the largest fall in the yuan in over two decades.
And while it might signal how desperate China has become after reporting a drop in exports of 8 percent, it doesn't exactly spell disaster for U.S. companies, according to Goldman Sachs Chief Equity Strategist David Kostin.
"Two-thirds of the revenues of U.S. corporations are domestic," he told CNBC's "Squawk on the Street" in an interview. "So the real driver of the economy, and the market, is really domestic demand and there is some evidence [with] the job market here in the U.S. that things are getting a little bit better."
Read More Currency war? How China devaluation may impact Fed
David Kostin, chief U.S. equity strategist at Goldman Sachs Group.Scott Eells | Bloomberg | Getty Images
But with slowing sales growth and modest economic expansion, Kostin added that capital spending and corporate repurchases would only be able to contribute so much of a boost against new headwinds to keep the market where it is.
"Valuation, lack of earnings growth, Fed hike on the horizon—that's sort of the see-saw [that] basically leads you to 'flat is the new up,' " he said. "You should be expecting that kind of a return in this market."
Read More How to anger Asia, Fed in one shot: Devalue the yuan
That much is reflected in Kostin's reaffirmed end-of-the-year price target of 2,100 for the S&P 500. However, the strategist, who expects a December rate hike, hinted anything earlier could be problematic, saying "the idea of a higher rate environment would be a concern."
With that in mind, combined with China's troubles, Kostin advised investors to focus more on cyclicals, favor value more than growth, and emphasized avoiding companies that might be overexposed internationally.
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97878928c8ab05ab8a8559faaea0ae96 | https://www.cnbc.com/2015/08/11/pboc-fixes-yuan-at-63306-up-16-on-tuesday.html | Where now for the yuan? Only the PBoC really knows | Where now for the yuan? Only the PBoC really knows
Getty Images
Even as China's central bank weakened its yuan fixing further on Wednesday, uncertainty remains about Beijing's commitment to a floating currency.
The People's Bank of China (PBoC) set the yuan fixing at 6.3306 against the U.S. dollar on Wednesday, 1.6 percent weaker than the previous day's level, signaling its commitment to the change it set out in Tuesday's press release: daily fixings would now be determined by the previous day's closing spot prices and market-moves of other major currencies.
The currency tumbled 1.6 percent on Wednesday following Tuesday's 1.8 percent plunge. The PBoC has said it was aiming for a devaluation of around 2 percent.
Despite the weaker fixing, the central bank said on Wednesday that there was no basis for continued yuan depreciation, citing "ample forex reserves" and a "stable financial system" as supportive factors of exchange rate stability.
Read More How to anger Asia, Fed in one shot: Devalue the yuan
But analysts said it could be weeks before it was clear what China intended for the yuan.
"It all depends on whether this step-change is the start of a move towards a more flexible exchange rate regime or an old-style devaluation. As the weeks unfold it will become clear whether Beijing is indeed minded on allowing more flexibility," Diana Choyleva, head of research and chief economist at Lombard Street Research in a report.
"While Tuesday's language seems to hint at a major step in the reform of the FX regime, we caution to read too much into this statement," JPMorgan (JPM) economists echoed in a note. "In the weeks or even months to come, what would happen if spot continues to trade on the weak side of the band?"
If the yuan's fixing will be more market-oriented as the PBoC intends, that implies greater volatility and weakness ahead.
VIDEO4:1304:13China's surprise currency move is 'historic': ProSquawk Box Asia
But therein lies the PBoC's dilemma; substantial currency devaluation doesn't bode well for overall confidence amid a volatile stock market, as well as Beijing's desire for inclusion into the International Monetary Fund's Special Drawing Rights (SDR) basket, Goldman Sachs noted in a Wednesday report.
"While more FX flexibility is likely helpful [for SDR inclusion], a sharp, government-engineered currency weakness against the dollar will likely create unnecessary political resistance to the process," Goldman said.
An IMF spokesperson confirmed on Wednesday that Tuesday's historic move was "a welcome step," but one that had "no direct implications for the criteria used in determining in the composition of the SDR basket."
Moreover, a weaker yuan also heightens the risk of capital outflows. The PBoC has consistently intervened to keep the yuan stable, resulting in foreign-exchange reserves sliding to a two-year low at the end of July.
"If you toy with the currency too aggressively, you risk a more aggressive capital flight coming out of domestic assets like the property market or A-share equities. Neither of those is palatable for policymakers," Michael Kurtz, global head of equity strategy at Nomura, told CNBC.
Several experts believe the PBoC will continue stabilizing the currency.
Read More 5 aftershocks from China's devaluation of the yuan
"Our base case remains that Beijing will continue to resist the devaluation temptation because it would not significantly help Chinese exports and economic growth, could lead to destabilizing capital outflows due to expectations of further devaluation and exacerbate the financial burden of Chinese companies with large and unhedged foreign currency debt," BNP Paribas explained in a note on Wednesday.
"While further depreciation is likely over the next 12 months, the PBoC is unlikely to see it regarded as a one-way trade," echoed Angus Nicholson, IG market analyst.
Given the lack of clarity on the PBoC's intentions, banks including Goldman have outlined various scenarios detailing the magnitude and speed at which depreciation may take place.
Scenarios include a one-off reset for now and moderate depreciation leading up to and post the SDR decision, a 3-5 percent weakening in three months, and an abrupt 10 percent devaluation. Goldman is betting on the second option, pointing to comparable episodes in January and November last year as historical reference points.
Devaluation over the course of a protracted period is widely expected to generate a much more panicky market reaction than a one-off move, JPM economists said.
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c75bd7a13bfd299dd49c4f10e79d16e1 | https://www.cnbc.com/2015/08/11/what-googles-new-structure-means-for-youtube.html | Business Beyond Tomorrow | Business Beyond Tomorrow
VIDEO3:2703:27YouTube's starring roleInternet
VIDEO1:1301:13Google's ABCs & YouTube's fitSquawk Box
VIDEO1:2501:25Alphabet shines light on YouTubeSquawk Alley
Google's new operating structure places a holding company, called Alphabet, above all of its varied ventures into biotech, drones and self-driving cars.
YouTube, the online video behemoth with more than a billion users and its own CEO, remains under Google as a core business.
Analysts told CNBC on Tuesday that the move brings more transparency to Google's businesses, including YouTube. YouTube has told CNBC that it will not break out revenue numbers under the new organizational structure, but analysts said they expect more insight into growth and profitability at the video giant.
Read MoreGoogle to become part of new company, called Alphabet
"For us analysts who are greedy for information, there will be better disclosure around the operating businesses within Google Inc.," said Anthony DiClemente, managing director at Nomura, during an interview on CNBC's "Squawk Box." "Those three big drivers being YouTube, mobile search and the ad tech businesses."
Ben Schachter, senior Internet analyst at Macquarie Research, told CNBC in an email that it remains unclear whether Google plans to release more metrics on YouTube under the new structure. Still, it will shine a light on YouTube's bottom line, he said.
"We think that simply by being including in the new Google results, investors will have a better idea of its profitability," he said.
Jeff J Mitchell | Getty Images
As for the starring role YouTube will play, Elevation Partners co-founder Roger McNamee was bullish on its long-term prospects. In an interview with CNBC's "Squawk Alley," McNamee called YouTube an "enormously exciting" platform.
Read MoreGoogle's name change could be good for its stock
"They have established a position in that business that is, at the moment at least, unassailable," he said. "... I do think from an investor perspective Google remains Google. All pieces that were ever there are still there."
—CNBC's Julia Boorstin contributed to this report.
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bb98ec45403c12a930e46fda5297de05 | https://www.cnbc.com/2015/08/11/yuan-move-angers-asia-fed.html | How to anger Asia, Fed in one shot: Devalue the yuan | How to anger Asia, Fed in one shot: Devalue the yuan
VIDEO5:1705:17China throws currency curveballSquawk Box
VIDEO4:2804:28China yuan devaluation surprises tradersSquawk Box
VIDEO3:0003:00China screaming trouble: ProSquawk Box
A new Asian currency war and a delayed Federal Reserve rate hike; these are the potential market-shaking implications of Beijing's decision to devalue the yuan, strategists told CNBC.
"If they are true to their word today and this is a new regime for the fixed mechanism, we might think about using the word 'floating' associated with the Chinese exchange rate—that's a massive change," noted Richard Yetsenga, head of global markets research at ANZ, referring to Tuesday's announcement by the People's Bank of China to allow the yuan to depreciate as much as 2 percent against the U.S. dollar.
Read MoreChina central bank shocks with yuan devaluation
The move took global traders by surprise, with many pointing to weak July trade data, the recent stock market rout's spillover impact on consumption, and aspirations for inclusion into the International Monetary Fund's Special Drawing Rights basket as factors motivating Beijing.
"It's an interesting move which means several things: when the People's Bank of China first started lowering interest rates and reserve requirements, that freed up bank lending, which likely went to stocks. Now this yuan re-engineering will help companies that represent the greater economy, i.e. exporters, not just companies heavily weighted in stock markets," explained Nicholas Teo, market analyst at CMC Markets.
China may be focused on becoming more market-oriented, but Tuesday's announcement is the latest in a series of competitive devaluations in Asia and other emerging markets, traders said.
"Clearly, this is a shock to the rest of Asia. If you look at China's top trading partners—Korea, Japan, the U.S. and Germany—this is a competitive hit to the exports of those countries. China is exporting disinflation to countries who receive Chinese exports. This is especially negative for Asia currencies," noted Callum Henderson, global head of FX Research at Standard Chartered.
Indeed, the region's reaction to Tuesday's announcement was swift and severe. As the yuan tumbled as much as 1.8 percent against the greenback, the Korean won (KRW), (SGD), and Australian dollar all sank more than 1 percent.
"Other Asian countries will see today as a competitive devaluation from China. Currencies like the KRW and SGD are the most in the firing line, in our view. In North Asia, Taiwanese and Korean authorities are anyway on the record for preferring weakening currencies. In Singapore, the October monetary policy meeting will now increasingly be in focus for a potential weakening move," JPMorgan said in a report on Tuesday.
Global central banks excluding the U.S. engaged in an easing war early this year in order to stem deflation and protect their economies from sinking oil prices and an advancing greenback ahead of a widely anticipated U.S. interest rate hike this year.
VIDEO3:3803:38Behind China's surprise move to weaken yuanStreet Signs Asia
"We've been in a competitive state of easing all year and China's announcement today indicates the easing wars are a spiral that won't end until global economic growth picks up," Teo warned.
However, banks including Standard Chartered and ANZ were quick to warn that Tuesday's move was likely a one-off adjustment and further yuan devaluation wasn't likely, which should ease the pain on Asian currencies going forward.
"Given we believe that China is not aiming to engineer a much weaker renminbi (RMB), the sharp depreciation pressure on Asian currencies from today's CNY fixing change should fade. That said, we believe the likelihood of USD-RMB trading with elevated volatility implies that other USD-Asian exchange rates should be more volatile too," HSBC said in a report on Tuesday.
Tuesday's move could also see the Federal Reserve shelve plans for rate-liftoff in September, according to some investors.
The yuan and the U.S. dollar were the only two strengthening currencies left amid recent global monetary easing but now that China is finally easing across the board, the greenback is the only one left, explained Jim Rickards, chief global strategist at West Shore Funds.
"Today's yuan move now means the U.S. will support all the deflation in the world. Everybody's trying to get inflation via easing, which means they are exporting deflation to the stronger currency."
Continued dollar strength is problematic for the Fed since it hurts U.S. exports, lowers inflation and dampens corporate profits. Because raising interest rates will likely only further push up the dollar, the central bank is in a key dilemma. As of Monday, the likelihood of a rate hike in September was 54 percent, according to the CME FedWatch tool.
"Now, even a small increase in rates in September could have a magnified effect on the value of the U.S. dollar, we'll have to wait and see what the Fed does," said John Carey, portfolio manager at Pioneer Investments.
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eb219f1503db91cae44cf0a1aff172ef | https://www.cnbc.com/2015/08/12/china-central-bank-holds-press-conference.html | PBoC quashes currency depreciation expectations | PBoC quashes currency depreciation expectations
VIDEO2:0402:04Analyst: Reasons not to panic about ChinaSquawk Box
China's central bank reiterated that there was no basis for continued currency depreciation, calling reports of a possible yuan drop of 10 percent "groundless."
At a closely-watched press conference in Beijing on Thursday, People's Bank of China (PBoC) vice governor Yi Gang also pledged to improve the yuan's pricing mechanism, Reuters reported. Foreign media outlets other than newswires were not permitted to attend the conference.
Officials said the central bank had the tools to keep the yuan stable, adding that the currency could even return to appreciation in the future. Ample foreign exchange (FX) reserves, a trade surplus and a sound fiscal position were factors cited to support a stable currency.
Read MoreChina weakens yuan for a third straight day on Thursday
Reuters reported that it had been informed by sources that "powerful voices within government were pushing for the yuan to go still lower, suggesting pressure for an overall devaluation of almost 10 percent."
But the PBoC vice governor dismissed such speculation, adding that there was no need to adjust the yuan to promote exports.
The comments saw the yuan pare losses to around 6.4 per dollar, from an earlier intraday high of 6.4422, while the benchmark Shanghai Composite traded down around 1 percent.
A shock devaluation announcement this week by the central bank has seen the yuan depreciate by about 3 percent in three days, fanning fears that that the currency could enter free-fall.
In a historic move for Beijing, officials devalued the currency by about 2 percent on Tuesday and said the daily spot rate would be set according to the previous day's closing central parity rate, effectively allowing the currency to trade freely. Indeed, the yuan weakened for a third consecutive day on Thursday as the central bank stuck to its promise.
VIDEO3:1703:17China devaluation = market overreaction?Closing Bell
"A rigid yuan exchange rate is not suitable for China," PBoC vice governor Yi Gang told the press conference.
The decision to devalue the currency had been widely attributed to poor export data reported at the weekend. The data showed exports dropped 8.3 percent in July, the biggest fall in four months.
Today's press conference and Wednesday's intervention were signs that Beijing didn't want depreciation to get out of control, Mitul Kotecha, head of FX strategy for Asia Pacific at Barclays, told CNBC.
"The last thing they want is spiraling devaluation, but at the same time they are standing by their word," he said referring to the consistently weaker daily yuan fixings.
On Thursday the PBoC also expressed its desire for a unified onshore and offshore exchange rate, known as to the CNH and CNY, saying it wished to quicken the opening of its foreign exchange market and bring in more foreign investors. Yi Gang noted that the recent market volatility would not impact liberalization of the capital account.
Reports emerged late on Wednesday that the central bank asked state-owned lenders to on Wednesday in an effort to halt the yuan's slide. While the PBoC vice governor didn't directly acknowledge that report on Thursday, he did say the bank had stopped regular intervention in FX markets.
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4f6f841d3e3359b68a8a9d3f478ccca1 | https://www.cnbc.com/2015/08/12/pure-storage-ipo-gets-tech-investors-excited.html | Is this the tech IPO that changes everything? | Is this the tech IPO that changes everything?
Pure Storage FlashArraySource: Pure Storage | YouTube
Finally an IPO to get the tech world excited.
While venture funding this year has reached levels not seen since the dot-com bubble and private valuations have exploded, the public markets have been largely relegated to the sidelines
Leave it to a storage company to try and break the ice.
Pure Storage, which ranked 16th on the latest CNBC Disruptor list, filed its IPO prospectus on Wednesday, announcing tentative plans to raise up to $300 million. Even at that amount, which is likely to increase, it would be the biggest deal for a U.S. enterprise technology company this year, and certainly the most high-profile name since Box in January.
Read More Meet the 2015 CNBC Disruptor 50 companies
Fitness tracker Fitbit raised $732 million in its IPO, and GoDaddy, which was backed by private equity investors, raised $460 million.
There's much more activity in the late-stage venture market. According to CB Insights, more than 100 companies have raised private rounds of at least $100 million this year.
"We're seeing fewer companies have the need to test the public markets, because they can get so much in the private markets," said Anand Sanwal, CEO of New York-based CB Insights
VIDEO3:2203:22Pure Storage unveils FlashArray//mSquawk Alley
In a blog post, First Round Capital's Josh Kopelman called the phenomenon a "private IPO" boom and said that one benefit for companies is that "it removes arbitrary time constraints on growth and profits."
That means all eyes will be on Pure when it finally debuts, likely in the next couple months.
Pure develops flash storage arrays, which are rapidly replacing the old spinning discs that businesses used in data centers. Pure promotes its technology as delivering 10 times the performance of legacy hardware from the likes of EMC and NetApp. It was built for an era of massive cloud applications and big data.
EMC has been fighting back with a product called XtremIO, and was the leader in all-flash arrays as of the first half of 2014, with 22.6 percent of the market, according to IDC. Pure ranked second at 18.3 percent, followed by IBM at 16.7 percent and NetApp at 9.1 percent.
Read More How a storage start-up scored an HBO cameo
Pure's revenue more than tripled in the first quarter to $74.1 million from a year earlier and topped full-year 2014 revenue of $42.7 million. Pure's 1,100 customers include Nielsen, Sierra Nevada Brewing and ConocoPhillips.
Unlike its closest competitors in the flash market, Pure is unshackled from struggling legacy businesses. Revenue at EMC increased a meager 3.3 percent in the latest quarter, while IBM and NetApp reported declining sales.
Pure invests heavily to get in the door and then counts on its clients to increase their spending over time. According to the prospectus, as of Jan. 31, more than half of Pure's customers bought more gear within 12 months of first signing up, with its top 25 clients spending on average an additional $4 for every $1 of initial purchase.
Piper Jaffray analyst Andrew Nowinski wrote in an April report that EMC was seeing weakening demand in part due to pricing pressure from Pure, which some channel partners said "is selling at a loss in order to displace EMC."
VIDEO2:0102:01Elliott goes public on EMC position: Faber
Like so many hypergrowth enterprise companies in recent years, Pure has depended on big financing rounds to fuel its expansion. In April 2014, the company raised $225 million at a valuation of more than $3 billion, in a round led by giant mutual fund company T. Rowe Price. In total, Pure has raised $470 million.
The company's research and development spending more than doubled to $31.7 million in the latest period, while its sales and marketing expense almost doubled to $48.3 million. That all added up to a quarterly net loss of $49.1 million, representing two-thirds of revenue.
A spokesperson for Mountain View, California-based Pure declined to comment because of the quiet period, but EMC is under no such restraints. Based on Pure's revenue, its market share is lower than expected, said Josh Goldstein, vice president of EMC XtremIO, in an e-mailed statement.
Read MoreWall Street's ongoing struggle to make sense of the cloud
"The magnitude of both Pure's losses and lower market share than originally reported is surprising -- a real eye opener," he said. "We are outselling competitors, even when those competitors work to buy the business at a loss."
Pure also has to contend with the burden of recent history.
Box has tumbled 38 percent since its opening-day pop in January, while Hortonworks and New Relic are trading just above their debut prices from December. Xactly went public in June, and has yet to show gains for new shareholders.
Pure Storage CEO Scott Dietzen and co-founders John Hayes and John "Coz" Colgrove.Source: Pure Storage
They're all software businesses that have virtually nothing in common with Pure, except that they sell to enterprises and lose money.
High-speed storage businesses have been even more troublesome for public investors. Violin Memory has been disastrous, and Fusion-io sold for less than its IPO value. Nimble Storage, which makes a hybrid storage product, has lost value since its day-one bump in 2013.
Rather, Pure has to hope that it's perceived more like a Workday or ServiceNow, which have handsomely rewarded investors since selling shares to the public in 2012, despite also racking up big losses.
Read MoreWorkday: From venture darling to venture capitalist
"When you look at the companies that have done relatively better in the public markets, they're the ones who had proven unit economics and credible models," said Sanwal. "For those burning cash with the promise of lifetime value, public markets haven't been as kind."
Pure has at least one thing on its side: personnel. Among its six outside board members are Aneel Bhusri and Frank Slootman, the CEOs of Workday and ServiceNow.
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648c43a8d34eab986ad2cc748f53a8c6 | https://www.cnbc.com/2015/08/12/start-up-creates-over-the-counter-fertility-pill.html | Start-up creates over-the-counter fertility pill | Start-up creates over-the-counter fertility pill
VIDEO5:3205:32Start-up creates over-the-counter fertility pillPower Pitch
Start-up PregPrep says it's offering women an inexpensive option to help the birds and the bees.
"Couples are currently spending $5 billion annually on fertility, and there are no affordable options," PregPrep co-founder Marjorie Goldner tells CNBC. "Our solution [is] PregPrep, the first over-the-counter product developed for any woman ready to have a baby."
Dr. Lara Oboler, an interventional cardiologist at New York's Lenox Hill hospital, was in her mid-30s when she was ready to start a family. But things weren't moving as quickly as she would have liked.
She started researching and came across mucolytics, a type of drug generally used to break up chest congestion. She found that it can also thin cervical mucus, in turn, making it easier for sperm to swim to an egg. In fact, birth control pills that contain progesterone actually have the opposite effect. They thicken cervical mucus.
Oboler claims she got pregnant one month after using a mucolytic. She concluded that this was an option that should be made available to all women. So she joined forces with her sister-in-law, Goldner, a former marketing executive, to start PregPrep in 2010.
Their product, the Complete Conception Kit, launched at the end of 2012. It comes over the counter and retails for $29.99. The kit contains a one-month supply of two different supplements. VitaPrep is packed with vitamin D, vitamin B12 and folic acid. FertilPrep is the mucolytic and contains the active ingredient N-acetyl cysteine (NAC).
"N-acetyl cysteine, which is our main ingredient in our FertilPrep, has been studied in placebo-controlled randomized trials," Oboler said. "And it has shown that in women with PCOS [polycystic ovarian syndrome] which is the most common cause of infertility, N-acetyl cysteine increases their chances by 3 1/2 times to get pregnant."
Baby Elijah, pictured here at 1 month old, was born to PregPrep momma Jamie Pohlot.Source: PregPrep
Since the Complete Conception Kit is considered a supplement, it does not require FDA approval. But the company's website claims years of careful research and guidance from top OB/GYNs went into creating the kit. The founders told CNBC the PregPrep is for all women who want to get pregnant, and not just women struggling to conceive or may be suffering from Polycystic Ovary Syndrome or PCOS.
The product is available in 2,300 CVS stores as well as other pharmacies. Goldner said they will be in 7,000 CVS stores by next year and are in talks with Walgreens. Customers can also buy online on the company's website or other retailers such as Amazon.com.
Dr. Jackie Walters, OB/GYN and cast member of Bravo's "Married to Medicine" questioned the company's push to cast such a wide net of customers. "There are different reasons for infertility, and of course PCOS is one of them … [but] it's not considered infertility until after 12 months."
The PregPrep Complete Conception kit sells for $29.99Source: PregPrep
However, Goldner said the odds are stacked against even healthy women. She referenced a 2012 study, conducted by Warwick Medical School in the UK. Researchers there found that 25-year-old women who have been trying for three months, have an 18 percent chance of getting pregnant in their next cycle. That number drops to 7 percent by the time a woman is 40.
"PregPrep is really for any of the seven million women in the U.S. alone that are trying to conceive…so right now PregPrep is the only option available for healthy women to help them nudge nature along and have all the right nutrients in their body pre-conception. And the natural mucolytic helps them get pregnant more quickly," Goldner said.
The self-funded company was founded in 2010, and the founders said they have sold over 7,000 kits to date.
—Comments, questions, suggestions? We'd love to hear from you. Follow us @CNBCPowerPitch and join the #PowerPitch conversation.
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6d6961dbda4ed8828a47676e9aaa7bab | https://www.cnbc.com/2015/08/13/stocks-open-mostly-higher-as-wall-street-digests-data.html?utm_source=wnd&utm_medium=wnd&utm_campaign=syndicated | Stocks end mostly lower despite subdued China concerns; Fed eyed | Stocks end mostly lower despite subdued China concerns; Fed eyed
VIDEO3:2403:24Closing Bell Exchange: The global pictureClosing Bell
VIDEO1:1101:11Pisani: Mid day improvement Power Lunch
VIDEO3:3003:30Cashin says: Eye oil near $42.05World Economy
VIDEO3:2103:21Pisani: Split market open
U.S. equities pared gains and closed mostly lower on Thursday despite concerns over China having been largely subsided while investors digested a number of economic data points. (Tweet This)
"We're still trading in this sort of range," said JJ Kinahan, chief strategist at TD Ameritrade. "Yesterday was such an amazing rally that it's hard to believe we come out of it unscathed."
U.S. stocks gave back most of their gains less than an hour ahead of the close after trading in a back-and-forth range throughout the morning despite a massive fall in oil prices. The Dow rose about 80 points at its peak, while the S&P 500 and the Nasdaq Composite rose about 7 points and 27 at their respective highs.
U.S. crude traded below $42 per barrel for the first time since March 2009, leading the energy sector to trade as low as 1.35 percent. WTI futures settled down 2.5 percent.
Read More Got dividends? The 5 stocks yielding more than 6%
"The negative effect of falling oil prices on stocks maybe has faded," said Zachary Karabell, head of global strategy at Envestnet.
Subdued concerns over China devaluing its currency by 10 percent propped U.S. markets higher, said William Lynch, director of investments at Hinsdale Associates. "I think that's in the rear-view mirror now," he said.
"The last thing they want is spiraling devaluation, but at the same time they are standing by their word," PBoC vice governor Yi Gang said.
On Wednesday, U.S. equities whipsawed, dropping more than 1 percent at their lows before closing mostly higher. Stocks were largely weighed down by the People's Bank of China's decision to further weaken the yuan against the U.S. dollar.
Read More Samsung launches 2 big screen devices to rival iPhone
Investors also digested a slew of economic data, as U.S. retail sales for July rose 0.6 percent, slightly above estimates, the Commerce Department said, boosted by auto sales. June's retail sales were also revised up to show them unchanged instead of the previously reported 0.3 percent drop, Reuters said.
"When you take out auto sales, it really wasn't [an increase]," said Maris Ogg, president at Tower Bridge Advisors. "We've had money coming into our pockets due to [lower] gasoline prices and we haven't spent it."
Ogg added the U.S. consumer has become more prudent since the recession and is only buying what he or she truly needs.
Read More Oil stocks have done something extraordinary: Trader
Weekly jobless claims came in at 274,000, slightly above a consensus estimate of 270,000, while import prices fell 0.9 percent amid lower oil costs and a strong dollar.
Traders work on the floor of the New York Stock Exchange.Getty Images
"Bottom line, the song remains the same as the pace of firing's remain quiescent as employers hold tight to their qualified workers," Peter Boockvar, chief market analyst at The Lindsey Group said in a note about the jobless claims number.
U.S. business inventories rose 0.8 percent in June, well above the estimated 0.3 percent rise.
Weekly natural gas inventories also rose by 65 billion cubic feet, the Energy Information Administration said.
Read MoreWhy US stocks shrugged off yuan devaluation: Analysts
This combination of data sets and current market conditions could in fact lead the Federal Reserve to normalize monetary policy, said Mark Luschini, chief investment strategist at Janney Montgomery Scott.
"They seem eager to get on with it ... and that's got the market on edge," Luschini said.
In Europe, stocks closed higher as investors kept an eye on the latest developments in China and the progress being made on Greece's new bailout program.
In corporate news, retailer Kohl's reported quarterly results that missed Wall Street's expectations, citing a delay in tax-free sales by a number of states.
Read MoreEarly movers: MNST, S, KO, XOM, VZ & more
Elon Musk's Tesla Motors filed to offer 2.1 million common shares in an attempt to raise at least $500 million in new capital. The company's stock traded higher before the bell.
Merck, Monster Beverage, GoPro and Yahoo shares were all upgraded by BMO Capital Markets, Morgan Stanley, Cowen & Co. and Bernstein, respectively.
Major U.S. Indexes
The Dow Jones Industrial Average closed down 5.81 points, or 0.03 percent, at 17,408, with Cisco Systems leading advancers and Intel and Caterpillar the greatest laggards. The blue chip index also snapped a two-day losing streak.
The ended down 2.66 points, or 0.13 percent at 2,083 with energy leading eight sectors lower and consumer discretionary and financials the only advancers.
The Nasdaq closed down 10.83 points or 0.21 percent.
The U.S. 10-year yield was last up 6 basis points at about 2.19 percent.
Gold futures settled down 0.9 percent at $1,114.56 an ounce.
Decliners led advancers three to two at the new York Stock Exchange, with an exchange volume of 767.30 million and a composite volume of 3.914 billion at the close.
The CBOE Volatility Index (VIX),widely considered the best gauge of fear in the market, traded near 13.
On tap this week:
Thursday
Earnings: Nordstrom, El Pollo Loco, King Digital, Party City
1 p.m.: $16 billion 30-year bonds auction
4:30 p.m.: Fed balance sheet
Friday
8:30 a.m.: PPI
9:15 a.m.: Industrial production
10 a.m.: Consumer sentiment
More From CNBC.com:
US small business confidence bounces back in July The biggest Social Security mistake women make PBoC quashes currency depreciation expectations
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f36a08c5d1be7342abd17d4b150d7231 | https://www.cnbc.com/2015/08/13/when-candidates-try-too-hard-on-social-media.html | When candidates try too hard on social media | When candidates try too hard on social media
Democratic presidential candidate Hillary Clinton speaks at The New School on July 13, 2015, in New York City.Getty Images
Pretty much all presidential candidates are using social media this election cycle to reach millennial voters. That doesn't mean all those messages are being received positively.
On Wednesday, Democratic candidate Hillary Clinton called on her followers to tweet emojis describing how they felt about college debt.
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It didn't go as planned.
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To be fair, Clinton's team recognized their faux pas and responded with a shrug—or at least an emoticon of a shrug.
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One problem: On Twitter it can be unclear whether it's the candidate speaking or a member of the team, said Jill Sherman, senior vice president of social strategy at DigitasLBi North America. Even though Clinton's Twitter profile clearly states that only tweets signed "- H" are from the Democratic candidate herself, people often don't make that distinction when statements are made from her personal account. Asking people to respond to a serious issue with emojis could be seen as dumbing down a serious issue, Sherman said.
Not everything Clinton is doing on social media has been wrong. Just this week, Clinton's team got in a Twitter battle with Republican candidate Jeb Bush's team, which involved photoshopped images calling out each other's policies. Sherman applauded the Clinton team's deft skill with Photoshop, saying this was the appropriate way to jump into a real-time conversation.
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The difference between the two tactics lay in the fact that it was clear that Clinton's team was behind the photoshop callouts, where the emoji request was perceived as coming directly from the candidate.
"At the end of the day, whoever is carrying out Hillary Clinton's strategy has to respect the fact that they are employing the voice of Hillary Clinton and everything will be read as if it's coming from Hillary Clinton, and not her campaign or social strategy team," she said.
Read More How pols are targeting youth: Go 360 and Snapchat
Sherman acknowledged that the Clinton team may have been onto something when they tried to get people to respond with the pictorial characters.
One Stanford study found that about 10 percent of all tweets contain at least one emoticon, or a typographical representation of an emotion. (More specifically, emojis are actual pictures.) Engadget reported that ever since Apple iOS and Android included emoji support, almost 50 percent of Instagram captions and comments contain an emoji.
But Clinton's team could have gone about it in a better way.
"You have this powerful, older woman trying to sound like she's hip to emoji culture," Sherman explained. "Is that the best way into the conversation? A better way may have just been to ask how do you feel about student debt? Many millennials would have responded with emojis, and older people may have responded with words."
Requests for comment from the Bush and Clinton campaign teams were unanswered.
Nail Communications social media strategist Greg Shumchenia pointed out that while Twitter is a necessary tool for candidates to express what they are doing and how they are feeling, it's better used for events when people gather around a topic or hashtag. Too many times people jump onto trends without considering why they are doing it, he said.
"In that particular case, he campaign was grabbing onto something that's popular and trendy right now," he said. "I think it can come off a little disingenuous or condescending. You can see that backlash from brands. It comes across as inauthentic. Twitter is sort of built onto transparency and authenticity."
Shumchenia compared Clinton's emoji question to Chevrolet's week-long emoji takeover campaign called #ChevyGoesEmoji. He said its Twitter presence was turned into a "relentless onslaught of emoji," which it used to talk to its followers and even tweet song lyrics. He said some agency and public members commented it felt "trite and ultimately ridiculous."
"It's the danger of asking yourself what to do but not why you're doing it," he said. "Even when you delete or apologize for a tweet, the short history is someone is always seeing that and eyeing that."
Read More What Hillary Clinton is doing wrong
DigitasLBi's Sherman also noted that part of the problem with Clinton's call for emojis was that not everyone who follows her understands they are used to get people to show their emotions in a digital space. The tactic is ripe for nonsupporters to rip her apart.
"No. 1 rule of Twitter: Always account for trolls," she said. "Sometimes you're trying to incite feeling and reaction, and sometimes it's OK to invite the trolls. Just know that every action you take in a social platform is open to the global forum. Always anticipate what will this look like when this goes live. If you can stomach the aftereffects, go for it."
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78582539ec9b5c9796562929a0585470 | https://www.cnbc.com/2015/08/14/watch-out-business-schools-the-rise-of-boot-camps.html | Watch out, business schools? The rise of 'boot camps' | Watch out, business schools? The rise of 'boot camps'
Source: General Assembly
Ash Kamel wanted to expand his skills and be more marketable in the corporate world. But he didn't choose to do it by enrolling in an expensive and time-consuming business school program.
Kamel, who graduated with an electrical engineering degree nearly a decade ago and became an entrepreneur, enrolled instead in a three-month, classroom-based "boot camp" at General Assembly, a four-year-old startup that offers short-term intensive courses in design, business and computer programming. He saw it as the quickest and most efficient and inexpensive way to learn coding—a skill which has become vital to multiple industries.
"In retrospect, this was quite a gamble," said Kamel. "[But] it turned out great for me."
He credits the program with helping him secure a full-time software engineer position at DegreeCast, a startup search engine company in New York City.
Boot camps like the one Kamel chose have become increasingly popular over the past few years, as students weigh the cost and time involved in going back to school—particularly for skills like coding that are immediately marketable and don't require a graduate degree.
General Assembly, which has 14 campuses around the world, was founded by Wharton School graduate Jake Schwartz in 2011. The full-time, 12-week course costs about $12,000.
Read MoreThree ways to get more women in tech jobs
"Every company has become a tech company in the past few years. So our students go on to all different kinds of jobs in all kinds of organizations," said Schwartz, who was inspired by his time at Wharton to start the boot camp. "This is really about learning a brand new skill and learning it well enough to get a brand new job."
Wall Street has been valuing technology skills more than ever and Schwartz notes that a lot of the firms will pay top money to get the right people. He said General Assembly's graduates, who are mostly millennials, have been hired at companies, including American Express, Apple, Google and Uber. (General Assembly has raised $49.5 million in funding to date.)
But whether boot camps focused on specific skills can replace traditional business schools, which offer wide-ranging courses and a degree at completion, is another question.
Read More6 ways to earn college money from your employer
"In a way, the founder—and the founding—of General Assembly is the best argument for the value of an MBA. Presumably the founder is using the skills he learned in business school to manage, market, finance, develop strategy, generate profits, staff and, generally, build the company," said Rich D'Amato, spokesman for the Graduate Management Admission Council, which represents business schools, in a statement to CNBC.com. "These are two very different educational and career journeys and skills development opportunities being compared to each other and it's likely they lead to two very different career paths in the long run."
Boot camps like the one Schwartz operates have been gaining acceptance as a credible way to learn specific skills like coding and computer programming, however. And skills associated with web desig, digital marketing, data science and data analytics are in demand in this job market, according to Glassdoor, an online jobs and career online site.
"Established employees who don't have harder technology skills have an uphill battle," There is a huge skills gap when it comes to those who are up to speed on technology said Glassdoor chief economist Andrew Chamberlain.Chamberlain said. "But you don't need a degree. There are bootcamps and online ways you can learn basic coding."
Read MoreBoot camps may offer a peek at future of higher ed
General Assembly isn't the only startup offering such programs. Others like Udacity and The Flatiron School, both launched in 2012, also offer boot camps or "nanodegrees" that focus on practical, in-demand skills like computer programming.
The Firehose Project may be the newest entrant. After teaching hundreds of students how to code at places such as Harvard Business School and Carnegie Mellon, Marco Morawec decided to start the boot camp in 2013. It costs $4,000 for a 15-week long course to learn how to code and build web applications.
"Nothing beats the confidence that comes from demonstrating the real world coding skills that one learns from building an advanced web application as part of a team," said Morawec, who also serves as CEO.
Unlike General Assembly, the Firehose boot camp is done entirely online and offers virtual weekly office hours with students over video conference. But Morawec argues the online model is useful for the workforce too.
"Going through an online program has the added side benefits of preparing you for that remote side of the developer job as well," he said.
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fb71bce289b76b772fdd7ccbe7da4523 | https://www.cnbc.com/2015/08/17/atlanta-fed-gdpnow-gauge-takes-a-tumble-to-07.html | Atlanta Fed GDPNow gauge takes a tumble to 0.7% | Atlanta Fed GDPNow gauge takes a tumble to 0.7%
VIDEO0:3700:37Manufacturing down for the Empire StateManufacturing
The drumbeat of disappointment is continuing for the U.S. economy, with the latest numbers showing the third quarter looking a lot like the first quarter.
While economists continue to search for signs that domestic growth is finally loosening the shackles of the financial crisis, the data suggest otherwise. An initial reading Monday for the third-quarter manufacturing outlook was bleak, and the spending outlook both for consumers and businesses does not suggest rapid improvement anytime soon.
Hence, the result: The Atlanta Federal Reserve's GDPNow tracking tool, which has been a pretty reliable rule of thumb lately, indicates third-quarter advancement of just 0.7 percent, with the momentum to the downside. The indicator has dropped 0.3 percentage point just in the past week as the model adjusts for a likely decline in inventory build for the three-month period. (The CNBC/Moody's Analytics Survey has GDP growth at a comparatively lofty 2.6 percent.)
That lower reading also reflects conditions before the plunge in the Empire State manufacturing index released Monday morning, which showed that activity in the New York region contracted considerably. Gross domestic product increased 2.3 percent in the second quarter—a number economists are revising up due to a sharp but likely unsustainable inventory build—after rising just 0.6 percent in the first quarter.
Read More This is 'more damaging than Great Recession'
Peter Boockvar, chief market analyst at The Lindsey Group., called the Empire reading "awful" and said it was the worst for the data point since April 2009.
Workers box jars of pasta sauce at a plant run by Chelten House Products in Bridgeport, N.J.Jonathan Spicer | Reuters
"It was not a good start to the August data, and a stronger dollar, weak growth overseas and a still 2 percent U.S. economy doesn't lend itself to a robust manufacturing outlook," Boockvar said in a note.
A principal problem is that some of the key ingredients seen as leading drivers behind growth fail to sustain momentum. Spending is one such point.
Consumers seem to be making at least a gradual comeback, with retail spending numbers last week modestly better than expectations. The GDPNow tracker actually indicates a stronger growth rate for the metric, rising from an originally projected 2.9 percent in the third quarter to 3.1 percent.
Business spending, however, is not providing follow-through.
Nonresidential business fixed investment fell 0.6 percent to $2.27 trillion after increasing a modest 1.6 percent in the first quarter, according to the Bureau of Economic Analysis. Durable goods orders declined 6.6 percent annualized and wages are growing at just a 2 percent pace, also reflecting a general tendency of U.S. business to focus more on boosting share prices than investing in the future.
"Businesses ... continue to cut investment at a time when near-zero interest rates would typically argue for corporate expansion," Lindsey Piegza, chief economist at Stifel Fixed Income, said in a note. "While unclear whether or not fiscal uncertainty surrounding both taxes and regulation offsets the benefits from easy money policy, it is crystal clear that businesses remain sidelined."
While consumer expenditures account for about 68 percent of the $17.8 trillion U.S. economy, Piegza said much of that is driven by business spending.
"Six years into the recovery, companies are still unwilling to invest in equipment, software or full-time, high-wage employees," she added. "Without business development to support consumer spending, there is very little hope for additional momentum in consumption or overall activity, let alone 'more of the same,' as we look further out into the second half of the year."
Of course, all economic prognostication roads run straight to the Fed.
Read MoreMarket changes mind, again, about Fed
Boockvar believes the central bank is going to hike interest rates in September, as do most other Wall Street forecasters. JPMorgan cut its Q3 growth projection from 2.5 percent to 2.0 percent but said it was sticking with a September cut forecast, though acknowledging it is a "very close call." Goldman Sachs economist Zach Pandl advised waiting until other Fed manufacturing surveys come out before judging whether the New York number reflects broader weakness.
Among traders, though, the story is different: The CME Group's FedWatch forecast assigns just a 41 percent chance for a liftoff next month, with a 68 percent probability for December.
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2e092c59da505941bed033730207a0e5 | https://www.cnbc.com/2015/08/17/stocks-end-higher-on-data.html?utm_source=wnd&utm_medium=wnd&utm_campaign=syndicated | Stocks end up on homebuilder data; oil, Fed eyed | Stocks end up on homebuilder data; oil, Fed eyed
VIDEO3:3403:34What the market is really trying to tell usClosing Bell
VIDEO2:3102:31Time for biotech to bounce back?Trading Nation
VIDEO2:3802:38Where oil is headed: Pro Closing Bell
VIDEO2:5602:56Market opens down triple digits
U.S. stocks closed higher on Monday after the release of positive homebuilder data as investors digested weak manufacturing data and falling oil prices while eyeing the release of the Federal Reserve's minutes. (Tweet This)
The National Association of Home Builders index rose 1 point to 61, its highest level since November 2005.
"I think the fact that it was positive really turned the market around," said William Lynch, director of investments at Hinsdale Associates.
The index's data release propelled stocks up and helped the S&P 500 to close above its 50-day moving average for the first time since Aug. 10. The Nasdaq Composite also rose more than 0.7 percent as biotechnology stocks rose about 2 percent and Apple jumped more than 1 percent.
"They both have had a few corrections in the past few months," said Zachary Karabell, head of global strategy at Envestnet. "This is at the other side of that correction."
Before trading higher, stocks opened with the Dow Jones industrial average falling as much as 136 points, while the S&P 500 an the Nasdaq also fell sharply on the heels of weak manufacturing data.
Dow Jones
S&P 500
Nasdaq Composite
"You can't ignore that the New York manufacturing numbers came in so weak," said Mark Luschini, chief investment strategist at Janney Montgomery Scott.
The New York Fed said that manufacturing activity for the state fell from 3.86 in July to -14.92 in August, its lowest since April 2009.
Read More
Economists polled by Reuters had expected the index to rise to 5.00 this month. A reading above zero indicates expansion.
"Bottom line, this number was terrible and maybe we're about to see the Q3 inventory giveback that was such a lift to Q2," Peter Boockvar, chief market analyst at The Lindsey Group, said in a note. "It was not a good start to the August data and a stronger dollar, weak growth overseas and a still 2% US economy doesn't lend itself to a robust manufacturing outlook."
Nevertheless, "That is a very volatile number month-to month, so you want to take it with a grain of salt," said Scott Brown, chief economist at Raymond James.
The last economic data set due out on Monday is net long-term Treasury International Capital (TIC) flows.
Wall Street also kept an eye on oil prices, which continued to fall on Monday trading.
Read More Apple is building a self-driving car: Report
"Like it or not, we are correlated to oil," said Art Hogan, chief market strategist at Wunderlich Securities. "Until we find some stabilization, oil will continue to weigh on stocks."
U.S. crude prices were around multi-year lows and settled down 63 cents, or 1.48 percent, at $41.87 a barrel, its lowest settlement since March 3, 2009.
"We're at levels where oil is becoming problematic," said Randy Frederick, managing director of trading and derivatives at Charles Schwab, adding that if oil prices hold at these level, companies in the oil market will be forced to cut more jobs.
"There's a sweet spot for oil and we're probably below that," Frederick said.
In other news, The Federal Reserve is scheduled to release the minutes from its July meeting Wednesday at 2 p.m.
Read More Can the Fed justify an imminent rate hike?
"This is a week where the key event is going to be the Fed minutes," said Peter Cardillo, chief market economist at Rockwell Global Capital.
Still, Frederick added that he does not expect any surprises coming from the minutes, while Hogan added that a September move is still on the table. "The data's job is to dissuade [a Fed move] and not persuade the Fed not to move," Hogan said.
Nonetheless, TD Ameritrade Chief Strategist JJ Kinahan said that "people are afraid about whats on those minuted."
Kinahan added that this fear is reflected on the fact that the CBOE Volatility Index and U.S. Treasury's were all up on the day. "There is some underlying trust about [this market]," he said.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 13 on Monday, while the yield on the benchmark U.S. 10-year note fell to about 2.14 percent.
Traders on the floor of the New York Stock Exchange.Lucas Jackson | Reuters
Overseas, Asian stocks ended mixed amid continuing China worries and better-than-expected Japan GDP data.
The People's Bank of China set the yuan's midpoint at 6.3918 against the dollar, weaker than the yuan's close of 6.3918 in the previous trading session.
"I think the general concern about China is why they had to weaken the currency against the dollar," said Robert Pavlik, chief market strategist at Boston Private Wealth. "They're not giving us the full picture."
Read MoreUS dollar bull run hits global dividend payouts
Japan's economy shrank at an annualized pace of 1.6 percent in the April-June period, better than a Reuters' estimate of 1.9 percent contraction but well below a revised 4.5 percent expansion in the first three months of 2015.
"I think these factors are going to keep this market in a tight trading range in a sea of uncertainty," Cardillo added.
European equities closed mixed despite earlier gains as investors watched for progress being made in completing Greece's third bailout program.
In corporate news, Amazon CEO Jeff Bezos responded to Saturday's New York Times story about the company's workplace culture, saying the Amazon described in the newspaper's story was not an accurate depiction of it.
Cosmetics maker Estee Lauder posted mixed earnings results, beating on earnings per share but missing on revenue citing "macroeconomic headwinds and challenges."
Read More Why oil may not get the cure it needs: Analyst
Companies reporting after the bell include Urban Outfitters and Agilent.
Walt Disney said it would be adding Star Wars-themed lands to its Disnelyland and Disney World parks during its D23 expo.
Universal Pictures continued its highly successful year as "Straight Outta Compton" led the weekend box office with over $56 million in U.S. ticket sales..
Target also announced that Chief Financial Officer John Mulligan would move to the newly created Chief Operating Officer position.
Major U.S. Indexes
The Dow Jones Industrial Average closed up 67.25 points, or 0.39 percent, at 17,545.10, led higher by UnitedHealth Group and Chevron leading decliners.
The ended 7 points higher, or 0.52 percent, at 2,099, with health care leading nine sectors higher and energy lagging.
The Nasdaq closed up 43.46 points, or 0.86 percent, to 5,091, as biotechnology stocks rose 2.08 percent on the day and as Apple rose 1.03 percent.
Gold futures settled up $5.70 at $1,118.40 an ounce.
The dollar index rose to trade at 96.81.
Advancers led decliners 2 to 1 at the New York Stock Exchange, with an exchange volume of 699.10 million and a composite volume of 2.826.60 billion at the close.
On tap this week:
Monday
Earnings: Urban Outfitters, Agilent
4:00 p.m.: TIC data
Tuesday
Earnings: Wal-Mart, Home Depot, Medtronic, TJX Cos., Hain Celestial, Analog Devices, Dick's Sporting Goods, La-Z-Boy
8:30 a.m.: Housing starts
Wednesday
Earnings: Lowe's, American Eagle Outfitters, Target, Staples, Hormel Foods, L Brands, NetApp, Synopsys
8:30 a.m.: CPI
2:00 p.m.: FOMC minutes
Thursday
Earnings: Gap, Hewlett-Packard, Salesforce.com, Brocade, Mentor Graphics, Royal Ahold, Buckle, Madison Square Garden, Toro, Intuit
8:30 a.m.: Initial claims
10:00 a.m.: Existing home sales
10:00 a.m.: Philadelphia Fed survey
Friday
Earnings: Deere, Foot Locker, Ann
More From CNBC.com:
Survey: Oil prices seen below breakeven for frackersNYT article doesn't describe the Amazon I know: BezosRon Paul: Fed may not hike because 'everything is vulnerable'
—CNBC's Peter Schacknow and Reuters contributed to this report.
DISCLOSURE: Universal Pictures is owned by Comcast, CNBC's parent company.
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1ed66188db62eb40be7641534f45bd37 | https://www.cnbc.com/2015/08/18/dow-snaps-3-day-winning-streak-as-wal-mart-weighs-fed-eyed.html | Dow snaps 3-day winning streak as Wal-Mart weighs; Fed eyed | Dow snaps 3-day winning streak as Wal-Mart weighs; Fed eyed
VIDEO1:2801:2830 to close: China catching attention Closing Bell
VIDEO3:0003:00Homebuilding stocks jumpTrading Nation
VIDEO1:4001:40US markets used to China?
VIDEO1:4101:41Santelli: Really a story about slowing global growth?
VIDEO3:3103:31Pisani: China's impact on commodities
U.S. equities closed lower on Tuesday as Wall Street digested better than expected housing data and mixed earnings results from two Dow components while eyeing the the release of the Federal Reserve's minutes. (Tweet This)
"I think the market is getting some mixed messages here," said Art Hogan, chief market strategist at Wunderlich Securities, adding that while housing has improved, consumer spending has shifted in the U.S.
The Dow and the S&P 500 both flirted with gains during the session, but failed to hold their ground in positive territory. The Nasdaq Composite was the greatest laggard as the iShares Nasdaq Biotechnology ETF and shares of Apple both traded down.
U.S. housing starts data for July came in at 1.206 million, above what economists expected and near an eight-year high. June's starts were also revised higher to a 1.20 million-unit rate from the previously reported 1.17 million-unit pace.
Read More Cramer on housing: 'We are so back'
"Bottom line, the nice uptick in single family starts certainly follows the better home builder sentiment we saw from the NAHB as a dearth of inventories is hopefully going to now be met by improved supply. We certainly have a ways to go as at 782k, single family starts are still running 25% below the 30 year average," Peter Boockvar, chief market analyst at The Lindsey Group, said in a note.
The positive data is especially important given the fact that the Federal Reserve is scheduled to release the minutes from its July meeting Wednesday at 2 p.m., said Mark Luschini, chief investment strategist at Janney Montgomery Scott.
"The housing data gives the Fed another piece of ammunition to move [sooner rather than later], and that's certainly weighing on the markets," Luschini said.
"I think the fact that the Fed minutes will be released tomorrow is an important event and investors will certainly key on that tomorrow," said William Lynch, director of investments at Hinsdale Associates.
Read MoreAsian stocks swoon, with Shanghai Comp down 6.1%
Investors also took into account the earnings release of two Dow Jones industrial average components: Wal-Mart and Home Depot.
Wal-Mart reported quarterly earnings that missed analysts' expectations and also cut its full-year guidance, while Home Depot posted better than expected same-store sales. Shares of Wal-Mart closed down 3.37 percent, while Home Depot's stock ended 2.59 percent higher.
"The fact that Wal-Mart lowered its guidance was a real blow to retail earnings," said JJ Kinahan, chief strategist at TD Ameritrade, adding that while Home Depot's earnings were positive, they were also expected as the company's stock has been bolstered by a recovery in the housing sector.
A trader works on the floor of the New York Stock Exchange.Getty Images
Stocks opened Tuesday trading lower as investor sentiment was weighted down after the Shanghai Composite dropped 6.12 percent and closed at its lowest level since Aug. 7 overnight amid renewed concerns that the Chinese government could further devalue the yuan.
"The volatility of those markets in China has been tremendous," said Nick Raich, CEO at The Earnings Scout.
The People's Bank of China set the Chinese currency's midpoint rate at 6.3966 against the dollar, but the yuan fell against the greenback during Asia trading to about 6.40.
Read MoreWhy another China devaluation could be coming
The CSI300 and the Shenzen Composite also fell more than 6 percent.
The fall in China's equity market led to European stocks closing mostly lower, with the U.K. benchmark FTSE 100 the French CAC and the German DAX all ending down more than 0.2 percent.
Wall Street also kept an eye on oil prices as they continued to hover around multi-year lows.
"They're not collapsing, but they're drifting to this $40 price range," said Peter Cardillo, chief market economist at Rockwell Global Capital. "It's an indication that there's no capitulation [in this market]."
U.S. crude futures settled up 75 cents at $42.62 a barrel.
WTI crude oil in the past year
"Supply is at an all-time high," said Randy Frederick, managing director of trading and derivatives at Charles Schwab. "Add to it the higher dollar and it's no surprise that this market is lower."
The dollar index traded higher at 96.97 and is up over 7 percent this year.
Read More Value investor: Buy small caps after 6% pullback
In other corporate news, sporting goods retailer Dick's Sporting Goods posted earnings per share that came slightly above expectations, while revenue came in line with Wall Street's estimates. Dick's also raised its full-year guidance.
Urban Outfitters posted quarterly earnings per share of 52 cents, beating estimates by 3 cents. Still, revenue and same-store sales both missed expectations.
Wireless carrier Sprint is doing away with two-year contracts in favor of a business model in which customers lease their phones.
Petrobras may have to pay $1.6 billion or more to settle U.S. probes into a corruption scandal, according to Reuters.
Major U.S. Indexes
The Dow Jones Industrial Average closed down 33.70 points, or 0.19 percent, at 17,511.40, led lower by Wal-Mart and with Home Depot leading advancers.
The ended down 5.56 points, or 0.26 percent, at 2,096.88, with materials leading nine sectors lower and consumer discretionary the only advancer.
The Nasdaq closed down 32.35 points, or 0.64 percent, at 5,059.35, as biotechnology stocks closed down 0.9 percent and Apple ended down 0.56 percent.
U.S. 10-year Treasury note yields traded higher at about 2.20 percent.
Gold futures settled down $1.50 at $1.116.90 an ounce.
Decliners led advancers 2 to 1 at the New York Stock Exchange, with an exchange volume of 409 million and a composite volume of 2.910 billion at the close.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 14.
On tap this week:
Tuesday
Earnings: Medtronic, Analog Devices, La-Z-Boy
Wednesday
Earnings: Lowe's, American Eagle Outfitters, Target, Staples, Hormel Foods, L Brands, NetApp, Synopsys
8:30 a.m.: CPI
2:00 p.m.: FOMC minutes
Thursday
Earnings: Gap, Hewlett-Packard, Salesforce.com, Brocade, Mentor Graphics, Royal Ahold, Buckle, Madison Square Garden, Toro, Intuit
8:30 a.m.: Initial claims
10:00 a.m.: Existing home sales
10:00 a.m.: Philadelphia Fed survey
Friday
Earnings: Deere, Foot Locker, Ann
More From CNBC.com:
Bangkok reels after deadly shrine bombingYou could lose a 'tremendous amount' in this stock3 ways to fix Social Security's funding shortfall
—CNBC's Peter Schacknow and Reuters contributed to this report.
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799eb112f4e162098f7658b5bfd26df6 | https://www.cnbc.com/2015/08/18/google-delays-testing-of-modular-smartphone-until-2016.html | Business Beyond Tomorrow | Business Beyond Tomorrow
VIDEO2:2902:29Google delays Project Ara until 2016Internet
Google says its modular smartphone, called Project Ara, has been designed for 6 billion people. They're all going to have to wait until 2016 for the testing phase to even begin.
Developed by Google's advanced technology and projects group, the modular phone was originally planned to begin a limited marketing pilot in 2015. In a tweet, the Project Ara group said the phone needed more iterations than first planned.
https://twitter.com/ProjectAra/status/633359350656954368
Running on the Android system, the modular Project Ara smartphone will allow consumers to buy it in pieces, configured from scratch or bought completed already.
Read More'Martha Stewart of Silicon Valley' courts millennials
With modules or building blocks, users can tailor phones to their own needs, attaching cameras or speakers and other features. Parts can be swapped or upgraded at will.
Project Ara is looking at a few locations in the United States to begin testing, but the company did not detail specifics.
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cbb84b5e32df852fcd38372c0bd5d7d3 | https://www.cnbc.com/2015/08/18/nsw-beaches-deserted-as-shark-attacks-rise-cull-considered.html | Aussie summer of surf heads for wipeout as shark attacks rise | Aussie summer of surf heads for wipeout as shark attacks rise
Ralph A. Clevenger | Fuse | Getty Images
A spate of shark attacks in Australia has left some of world's top surfing beaches deserted and many people having second thoughts about taking a swim as the summer approaches.
Christmas in the Southern Hemisphere typically draws tens of thousands of surfers and other beach lovers to the warm Pacific waters of eastern Australia's New South Wales.
But there have been 11 shark attacks in the state this year, compared with only three in both 2014 and 2013, according to the Australian Shark Attack database, and many folks will be staying out of the water.
VIDEO0:3700:37Shark prowls near Cape CodPower Lunch
"To be honest, I'm rethinking taking my kids to the beach this year, it's too risky," said Malcolm Reeder, 50, who has vacationed near Sydney's Bondi Beach every Christmas since his two teenage daughters were old enough to swim.
"A couple of years ago they got surf boards for Christmas. Maybe this year it'll be hiking boots," he said.
In waters along hundreds of kilometers of coast north of Sydney, helicopter patrols regularly spot Great White sharks lurking near the few surfers still brave enough to catch the waves.
Read More7-foot great white shark saved by beach-goers
Former boxer Craig Ison of Evans Head was knocked from his board and mauled by a Great White on July 31. After coming out of a coma, he vowed never to go in the water again.
A few weeks earlier, body boarder Matthew Lee was attacked at Lighthouse Beach, suffering serious injuries to his lower legs.
The worst attack came in February, when a Great White tore the legs off 41-year-old surfer Tadashi Nakahara in a fatal attack at neighboring Shelly Beach.
Force field
Shark experts are being deployed to try to stem the attacks under an 250,000 Australian dollar ($184,000) "Shark Smart" campaign authorized by the Department of Primary Industries.
Arlen Macpherson paid A$390 for a device embedded in his surf board to repel sharks by emitting an electronic force field that overpowers its sensing organs.
"I'm deathly afraid of sharks and I love to surf," Macpherson said. "I needed a greater level of comfort in the water."
The attacks have also rekindled a debate over culling sharks, which are protected in Australia.
"If people choose to recreate in the ocean knowing full well the risks associated with it, it is morally wrong for us to then kill these wild animals when they mistake people for their natural food," animal rights group No NSW Shark Cull said in a statement.
Read MoreShark attacks off Carolinas aren't stopping vacationers
Prime Minister Tony Abbott, a life-long surfer, has described the issue of shark culling as "vexed" because, he says, of the difficulty in identifying the "guilty one". But those in favor of culling say: "One less to worry about".
Police are seeking a special permit to shoot sharks.
On a recent sunny morning, a powerful swell was rolling in at Lennox Head, which Surfer Magazine has identified as one of the world's top surfing breaks.
But less than a half-dozen surfers braved the paddle out, while 100 or so looked on from a parking lot.
"Surfing is my life and I want to be out there," said Greg Anderson, whose board remained strapped atop his car. "But something says stay out of the water and just hope the sharks go away."
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06d8723af628ed4ce3d886fdd4b169c8 | https://www.cnbc.com/2015/08/18/sprint-ceo-escalates-twitter-war-with-t-mobile-ceo.html | Sprint CEO escalates Twitter war with T-Mobile CEO | Sprint CEO escalates Twitter war with T-Mobile CEO
VIDEO3:3203:32Sprint cuts two-year contracts: CEOSquawk Box
Editor's note: A tweet embedded in this story contains vulgar language.
Sprint CEO Marcelo Claure came out swinging on CNBC in his war-of-words on Twitter with rival T-Mobile chief John Legere.
While trumpeting the end of two-year smartphone contracts and device subsidies at Sprint, Claure blasted Legere on Tuesday: "He's been beating up on our employees for way too long."
"That's over," he continued. "We're back and winning customers and we're just not going to let anybody to continue to insult Sprint."
Claure cited a study released Monday by RootMetrics, which put Sprint in third place in overall performance, network reliability and text performance.
Bashing the RootMetrics report, Legere was quick to respond, using barnyard language:
I get that you're proud of this bullshit, antiquated report, @marceloclaure – but you still came in 4th
That time of year again! Couple guys from @rootmetrics drive around, get paid by carriers to test networks on a single old-generation phone.
RootMetrics released this statement to CNBC, which read in part:
"We don't typically get involved in back-and-forth commentary between CEOs, and they have no influence on how we conduct our testing, how we analyze the data we collect, nor on our final results. ... We stand by our methodology and our results."
On CNBC's "Squawk Box," Claure said, "We just don't like it when somebody insults Sprint. I guess someone like John Legere, we have to talk to him on the same language and the language he understands and a language he uses pretty well."
He tweeted a meme with Legere's photo Monday night, playing off the Universal movie "Straight Outta Compton." Legere responded Tuesday morning. (Comcast owns NBCUniversal and CNBC).
.@marceloclaure straight outta ideas.
Legere also tweeted about this article later in the day:
Really? That's the next level? #weak .Good interview with #CraigMoffett who said "hard to see any value in S equity"
[The interview referenced in this tweet was on "Squawk on the Street" with analyst Craig Moffett. Watch here.]
Two weeks ago, Sprint reported a of a penny per share and raised forward guidance. But revenue was short of forecasts.
, Sprint, which posted 57.7 million customers at the end of the quarter, slipped to fourth place among U.S. wireless carriers, falling behind T-Mobile, which reported 58.9 million customers for the period.
Hopes were dashed earlier this month, as the long-anticipated prospect of a merger of Sprint and T-Mobile was scuttled, due to what's perceived as a unfriendly regulatory environment.
VIDEO3:3203:32Sprint cuts two-year contracts: CEOSquawk Box
In abandoning two-year smartphone contracts, Sprint joined T-Mobile, which did this two years ago, and Verizon, which made similar moves last week. AT&T remains the only major carrier still offering subsidies.
By the end of year, customers of the No. 4 wireless company Sprint will have to pay the full price for their phones or spread the payments out by leasing the device, an option that started last year
Unbundling the service and the device purchase will save customers money, Claure said on CNBC.
Sprint also announced a new iPhone Forever plan, allowing customers to lease their phones for $22 per month, in addition to monthly service fee, and upgrade to new models as they become available.
In a move to provide access the latest technology without having to wait for contract renewals, Claure said: "You have the ability every single time there's a new iPhone ... [to] go to the store, drop off your old iPhone and pick up a new one. That's included in your rate plan."
The $199 subsidized device is a thing of the past, he added.
Japanese telecommunications giant Softbank bought 80 percent of Sprint for $22 billion in July 2013. Claure became CEO a year ago, as the personal choice of Softbank chief Masayoshi Son.
Last week, SoftBank said it acquired 22.9 million additional Sprint shares at a weighted average price of $3.80 each.
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d3cbfff8cdf5ad7da2ac666b56cd9fe4 | https://www.cnbc.com/2015/08/18/wal-mart-investors-need-to-be-patient.html | A message for Wal-Mart investors: Be patient | A message for Wal-Mart investors: Be patient
VIDEO4:3004:30Wal-Mart earnings pressured by expenses: ProSquawk Box
Attention, Wal-Mart investors: You'd better saddle up for a bumpy ride.
Shares of the world's largest retailer extended their year-to-date losses when they fell 3 percent on Tuesday, after the company reported weaker-than-expected second-quarter earnings and slashed its full-year outlook.
This marked the second straight quarter when Wal-Mart's profit fell short of expectations, as the cost of paying higher wages to its associates, investments in its online and in-store businesses, theft and the spoiling of fresh foods contributed to another decline in operating income—its sixth in the last seven quarters, according to Retail Metrics.
For patient investors, however, the quarter signaled a further improvement in Wal-Mart's domestic operations, including its best same-store sales result in three years, and a third consecutive quarter of higher traffic.
These improvements attest that the company's investments are already bearing fruit, and should drive profit higher in the long-term.
Read MoreTarget has the edge; can Walmart catch up?
"When you're doing the things that Wal-Mart is doing, you're going to see some choppy earnings," said Moody's analyst Charles O'Shea. "This isn't a short-term story by any stretch of the imagination."
Walmart U.S. CEO Greg Foran openly admitted to investors that the aforementioned costs, along with lower-than-expected reimbursements in its pharmacy business, "will present continuing profit challenges for the remainder of the year."
Following the company's decision to raise wages for its store employees to a minimum $9 an hour—a change that took place in April—Wal-Mart said pay increases, training costs and additional store hours will decrease its earnings per share by 24 cents this year. This impact will continue to be felt next year, when the retailer will boost employee pay to $10 an hour for many workers.
The company also quantified a hit of 6 to 9 cents a share this year to improve its Web operations. Although these investments will cause short-term pain for the stock, they're critical to the long-term health of the retailer—something investors are already starting to see come through in its results.
For example, as Foran has placed a greater emphasis on keeping more registers open during peak shopping hours, better-maintaining its stores and ensuring shelves are well-stocked, traffic at its U.S. stores rose 1.3 percent during the quarter. Similarly, same-store sales grew 1.5 percent.
A cashier scans school supplies for a customer at a Walmart store in Los Angeles.Patrick Fallon | Bloomberg | Getty Images
The outperformance of its small-format Neighborhood Market stores has likewise continued, with comparable sales at these locations rising 7.3 percent during the quarter.
Though Wal-Mart will now open 160 to 170 of these stores this year—down from original projections for between 180 to 200—O'Shea said he continues to view these locations as a "game changer" that will help it steal quick midweek shopping trips from its competitors.
Wal-Mart also reported stronger sales in apparel and consumer electronics. While O'Shea attributed some of this boost to back-to-school purchases, he said the retailer's focus on improving its merchandise also played a role.
Read MoreWal-Mart squares off against Target in a new way
The fact that gas prices have remained low and employment trends are improving also weighed in the company's favor.
"Some of [Wal-Mart's sales growth comes] down to the continued impact of lower gas prices," said Neil Saunders, CEO of Conlumino retail research. "However, some of it is also down to improvements the company has made to its general merchandise offer, for which it deserves credit."
Outside of Wal-Mart's investments, headwinds related to its pharmacy business and "shrink"—a term that includes lost revenue from food that can't be sold because it's passed its expiration date, as well as theft—are expected to cost the retailer another 11 cents a share this year. But O'Shea said he views the issues surrounding shrink as short-term.
Wal-Mart is already working to combat shrink-related losses by cracking down on theft and reducing the price of items nearing their expiration date. At a meeting with analysts in April, Foran estimated that the markdown initiative will save $500 million a year.
Read MoreWhy Sears' first profit in three years doesn't matter
During a period of such heavy investment and change, analysts said the key to gauging Wal-Mart's success is to understand that its earnings will be choppy. To better assess the retailer's health, O'Shea said investors should look to results in the company's core business and online execution, both of which are gaining traction.
Raymond James analyst Budd Bugatch sounded a similar note, telling CNBC that if Wal-Mart wins with consumers it will win with shareholders, as "earnings will ultimately follow."
"Compared to expectations, which is what we all look at in the very short term, [Wal-Mart's earnings were] a disappointment," he told CNBC's "Squawk Box."
"That's where the opportunity lays for investors who are willing to be a little bit patient."
Bugatch has a "strong buy" rating and an $86 price target on the retailer.
So far this year Wal-Mart shares are down 19 percent, near $70.
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59e2af8530820c3c45c525772f576b8e | https://www.cnbc.com/2015/08/19/fed-approaching-hike-conditions-minutes.html | Fed 'approaching' hike conditions: Minutes | Fed 'approaching' hike conditions: Minutes
VIDEO2:1702:17Fed July meeting minutes Closing Bell
VIDEO1:4601:46Stocks reverse following Fed; then head down againPower Lunch
VIDEO2:0102:01Fed: 'Approaching' hike conditionsPower Lunch
Conditions for a rate increase are "approaching" though not at hand, according to the minutes from the most recent Federal Reserve meeting.
Policymakers at the U.S. central bank's Open Market Committee said at the July session that conditions hadn't been achieved yet for the first interest rate increase in nearly 10 years, due primarily to inflation that is not yet moving toward the necessary conditions.
"Most judged that the conditions for policy firming had not yet been achieved, but they noted that conditions were approaching that point. Participants observed that the labor market had improved notably since early this year, but many saw scope for some further improvement," the minutes said.
Discussion included both wariness over the pace of inflation as well as a "small" downward revision in medium-term gross domestic product growth.
Read the full minutes here.
The minutes appeared to be released on Bloomberg terminals earlier than their usual 2 pm time for reasons not immediately clear, and did not hit the Fed's web site until about 1:45. In a statement to CNBC, Bloomberg said, "In the process of preparing embargoed material we inadvertently sent a headline ahead of the embargo."
Read More Fed may have just gotten a red light for rate hike
After being sharply lower earlier, stocks rallied quickly after the premature release while bond yields hit session lows.
"It's a little bit of a puzzling reaction. Certainly they didn't take (a rate hike) off the table," said Richard Clarida, global strategic advisor at Pimco. "You'd have to infer maybe the markets were looking for something in neon, ' yes we are going to hike.'"
Janet YellenGetty Images
The Fed has set a 2 percent inflation rate as one of the earmarks for a rate increase, which has not been breached, along with a 6 percent unemployment rate that, conversely, has long since been eclipsed.
"You can make the case that core inflation is running at an uphill level. But headline inflation is depressed and the rest of the world is not doing very well in terms of growth and is awash in excess capacity," said Robert Tipp, chief investment strategist at Prudential Fixed Income. "In this global setting...you'd almost think the Fed would be more worried about fostering growth and inflation."
Read More Chair Yellen, please take your victory lap!
The FOMC declined to raise rates at the July meeting. CME traders had been assigning a 46 percent probability of a rate hike in September. RBS said futures pricing after the minutes release cut that probability to 36 percent, with the higher likelihood now coming in January.
"Many participants indicated that their outlook for sustained economic growth and further improvement in labor markets was key in supporting their expectation that inflation would move up to the Committee's 2 percent objective, and that they would be looking for evidence that the economic outlook was evolving as they anticipated," the minutes said.
"However, some participants expressed the view that the incoming information had not yet provided grounds for reasonable confidence that inflation would move back to 2 percent over the medium term and that the inflation outlook thus might not soon meet one of the conditions established by the Committee for initiating a firming of policy."
The Fed last raised rates more than nine years and has kept the key funds rate near zero since a series of moves to stem the financial crisis in late 2008. In addition to zero rates, the Fed expanded its balance sheet by more than $3.5 trillion, to $4.5 trillion, in three rounds of bond purchases called quantitative easing.
The minutes indicated a fairly spirited debate between hawks, or those in favor of raising rates, and doves, who prefer the Fed's historically easy monetary policy.
The doves believe that the economy hasn't yet reached the point where it's ready for liftoff, while the hawks worry, among other things, that inflation could quickly get out of hand, and the Fed will be left without tools to combat the next downturn if it maintains zero rates.
"If not now, when?" said Robin Anderson, senior economist at Principal Global Investors. "Maybe next year or even the following year, at some point we're going to be at risk for a recession. The Fed wants to be able to have room to able to move rates back down in subsequent years. That's why they want to move away from the zero bound and the imbalances it creates."
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f4fa10301aff6519f5ffad87a336c57a | https://www.cnbc.com/2015/08/19/fed-may-have-just-gotten-a-red-light-for-rate-hike.html | Fed may have just gotten a red light for rate hike | Fed may have just gotten a red light for rate hike
VIDEO1:4201:42Inside the mind of the FedThe Fed
The Federal Reserve got a little more breathing room Wednesday from the push to raise interest rates in September.
A widely followed inflation gauge—though not the Fed's favorite one—showed that outside of rising rents, there was little price pressure in the marketplace. The consumer price index rose just 0.1 percent in July. Even excluding food and energy prices, the CPI was only up the same 0.1 percent.
On an annualized basis, the index rose just 1.8 percent, which is below the Fed's current 2 percent inflation target.
Tumbling energy prices are the root of the CPI's weak performance, with the overall sector down 14.8 percent over the 12-month period, though up 0.1 percent for the month. One of the the more notable increases came from rent, which rose 0.3 percent in July and 3.6 percent for the year. Airfares plunged 5.6 percent, the most in 20 years, and fuel oil fell 3.4 percent in July.
Viewed together, the data take still more of the steam out of an argument for the Fed to raise rates in September for the first time in more than nine years.
Janet YellenKevin Lamarque | Reuters
"A weaker-than-expected rise in consumer prices at the start of Q3 further fuels the dovish argument for the Fed to remain on the sideline, delaying liftoff beyond the September FOMC meeting," Lindsey Piegza, chief economist at Stifel Fixed Income, said in a note. "Since the end of 2012, every Fed communication has continued to acknowledge the substandard level of inflation which continues to persist. Thus, at this point, raising rates with inflation so far below the Fed's target could create a misperception in the marketplace that the Fed has lowered their inflation goal."
Read More Fed official: No evidence QE boosted economy
Investors will get a closer look at Fed thinking Wednesday at 2 p.m. when the Fed Open Market Committee releases the minutes from its July meeting.
The committee initially had targeted a 6.5 percent unemployment rate and 2.5 percent inflation before tightening policy, but both numbers have become moving targets amid uneven economic growth. Though the headline jobless figure, excluding those not actively looking for work and the underemployed, has fallen to 5.3 percent, the Fed remains handcuffed by the weak inflation readings.
Its preferred gauge for that metric, the personal consumption expenditures price index, shows even a lower level of inflation than the CPI. The core PCE's latest reading, in June, was just 1.3 percent. While consumers might scoff at an inflation gauge that omits food and energy, Fed Chair Janet Yellen generally dismisses price fluctuations in both categories as "transitory" and therefore not central to monetary policy decision-making.
Read More Don't expect Fed to signal rate hike: Strategist
Low inflation readings, particularly the latest CPI, "will certainly give the Fed pause for thought in whether to raise interest rates or not at the next FOMC meeting in mid-September," Paul Ashworth, chief U.S. economist at Capital Economics, said in a note.
"On balance, we still think the Fed will go ahead and raise rates in response to the cumulative improvement in labor market conditions. But the decision is finely balanced," Ashworth added. "With underlying price inflation and wage growth still muted, a case can also be made for waiting."
Anecdotally, most Wall Street economists seem to expect a September hike. However, traders at the CME are less convinced, with futures trading indicating a 45 percent chance of an increase at the meeting. A month ago, though, the probability was just 26 percent.
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de0fda3a111e7416ac758d1ef6e0047f | https://www.cnbc.com/2015/08/19/you-cant-get-this-from-ubereats-or-instacart.html | You can't get this from UberEATS or Instacart | You can't get this from UberEATS or Instacart
ZeroCater headquarters in San Francisco.Source: ZeroCater
On-demand food delivery has made for a funding bonanza.
From Instacart's latest $220 million round and Blue Apron's $135 million financing in June to the brand new UberEATS, there's a seemingly infinite number of ways to get cash-rich start-ups to bring you food.
One company is trying to prove that there's a leaner way. ZeroCater, which acts as a matchmaker between local food vendors and businesses that want to feed their employees, has raised a mere $1.5 million in its four years on the market.
Read MoreWhy food delivery apps is a tasty business
With that, the San Francisco-based company said on Wednesday that it's facilitated $100 million in sales and is serving tens of thousands of meals per day.
ZeroCater doesn't have its own fleet of delivery people. Rather it takes orders from companies including Google, Nissan and Salesforce.com, and has the taco shop, food truck or barbecue joint on the other end do all the cooking and delivery. ZeroCater takes a cut of every transaction.
Arram Sabeti, who bootstrapped the business for two years before officially launching in 2011, said he gets cold calls from venture capitalists every week looking to invest. He just hasn't found a compelling reason to say yes.
VIDEO1:5201:52Instacart CEO: Shop at the stores you loveSquawk Alley
"One school says if the money is there you should take it," said Sabeti. "We'd need a specific plan to convert that money into growth."
According to CB Insights, one-third of venture-backed companies in the food-delivery industry took in their first round of funding in the past year.
ZeroCater got its start in the Bay Area, largely working with other start-ups that Sabeti met while in Y Combinator. The company has since started serving in New York City, Chicago and Washington, D.C.
Read MoreBlue Apron makes cooking easy and fun
Sabeti said the company is being very deliberate in its geographic growth. Good Eggs, a start-up designed to bring farmers market food to your door, shuttered its New York operation this month, acknowledging in a blog post that it "made a mistake in expanding it as quickly as we did without perfecting the model first."
ZeroCater has "historically been very conservative opening new markets," Sabeti said.
While Sabeti is by no means ruling out raising a bigger sum of money, he said that cash isn't the biggest constraint right now. Rather, it's finding the right people in a market with so many emerging companies. Sabeti said he's interviewed 40 candidates for the role of vice president of marketing, but hasn't met the right fit.
"The really tricky thing is not getting money anymore," Sabeti said. "The really tricky thing is getting great talent."
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03d445f4227248a51d6a1a3341861b6f | https://www.cnbc.com/2015/08/20/the-fed-might-still-hike-rates-in-september-citi.html | Why the Fed might still hike rates in September: Citi | Why the Fed might still hike rates in September: Citi
VIDEO2:1702:17Fed July meeting minutes Closing Bell
VIDEO2:5402:54Fed: Inflation remains a puzzling themeWorldwide Exchange
VIDEO3:2703:27Is the Fed moving toward a December liftoff?Squawk Box Asia
VIDEO6:2406:24Cramer: Interest rates headed lowerMad Money with Jim Cramer
The Federal Open Market Committee's July minutes might have tweaked market-watchers' expected dates for a rate hike to later in the year – if not next – but, as the minutes are digested, some argue that they are still on track for September.
Whether and when the U.S. Federal Reserve will become the first major Western nation's central bank to raise interest rates since the credit crisis began nearly eight years ago has dominated traders' thinking in recent weeks. The minutes of its rate-setting committee, released Wednesday, caused consternation among those betting on a September raise, sending the NASDAQ, Dow, and lower.
Fed 'approaching' hike conditions: Minutes
The main reasons the minutes were viewed as putting off the date of a rate rise are the wish of several committee members to see more signs of pressure on inflation, and also the concerns expressed about further risks from abroad.
And this Fed meeting took place before the yuan devaluation rocked world markets in August. A line from the report stating: "several participants noted that a material slow-down in Chinese economic activity could pose risks to the U.S. economic outlook" caused particular consternation.
Janet YellenGetty Images
Yet the minutes did not, in fact "present a new, more dovish, posture" according to analysts at Citi, as they showed that the committee is still concerned about maintaining the current ultra-low interest rates for much longer. As a result, the analysts now expects even those spooked Wednesday to come back soon to expectations of a September move.
"Most importantly, the July FOMC discussion highlighted the potential difficulties in identifying and managing the emergence of new risks resulting from prolonged low rates," they wrote in a research note Thursday.
"The increased prominence of financial stability considerations in the FOMC discussion is a very hawkish signal that markets apparently ignored with the release of the July minutes."
The concerns about events abroad have been exaggerated, they argued, pointing out that the committee "did not allow foreign developments to sway their baseline assessment about the timing or pace of rate normalization."
"September it will be—barring any bunker busters," they concluded.
- By CNBC's Catherine Boyle
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8a095c7677a09d27893ede403a707468 | https://www.cnbc.com/2015/08/21/alzheimers-risk-factors-some-may-be-controllable.html | Alzheimer's risk factors: Some may be controllable | Alzheimer's risk factors: Some may be controllable
Nine risk factors are responsible for up to two-thirds of the world's Alzheimer's cases, according to a new study, but there are also factors that seem to protect against the disease.
John Livzey | Stone | Getty Images
Dementia affects about five to seven percent of the population, and Alzheimer's cases represent about 60 percent of that total. While estimates vary, roughly 5 million Americans are thought to have the disease, according to the National Institute on Aging.
There is no cure for Alzheimer's, and it is the sixth-leading cause of death in the United States, according to the Centers for Disease Control and Prevention. But there may be steps you can take to reduce your risk.
A team of researchers from the University of California, San Francisco, examined more than 300 studies identifying Azheimer's risk factors, looking for behaviors patients may be able to change in order to lower their chances of contracting the disease.
The study showed that heavy smoking is the most significant risk factor for developing Alzheimer's, while the most significant protective factor was a healthy diet, such as the often-praised Mediterranean diet, said Jin-Tai Yu, a researcher at the University of California, San Francisco, and one of the study's coauthors, in an email to CNBC.
Read MoreCanada pharmacy charged in $78M drug export scheme
Narrowing of the arteries and obesity are also risk factors, as are type-2 diabetes (in the Asian population), low educational attainment, depression, high blood pressure and frailty.
Having a high level of the amino acid homocysteine was also a risk factor. Homocysteine is made in the body, and high levels may be the result of vitamin-B deficiency or excessive levels of methionine in the body, though the exact cause is not known.
Apart from maintaining a healthy diet, other steps to best protect yourself from the disease include staying physically active, keeping alcohol use light or moderate and taking in sufficient amounts of certain vitamins like B9 (folate), C, and E.
The team published its results late Thursday in the Journal of Neurology, Neurosurgery and Psychiatry.
VIDEO1:1801:18Big Alzheimer's bets Closing Bell
Alzheimer's is a highly complex disease "with a highly genetic underpinning," and the study's results should be interpreted conservatively, Yu said.
"In other words, we cannot expect to completely avoid [Alzheimer's] occurrence if we controlled all the modifiable risk factors," Yu said in an email to CNBC.
There were some factors that seemed to have contrary effects, depending on the circumstances. Smoking and type-2 diabetes accompanied greater Alzheimer's risk to Asian populations than other "Western" populations, where smoking actually accompanied a lower risk. Having a high body-mass index in mid-life put some at greater risk, while a bit of excessive weight later in life seemed to decrease the risk for others.
Readers should "consider these results from a more comprehensive perspective given that the cross-impacts of these factors to the overall health are complex," Yu said.
Read MoreLow libido? FDA weighs drug for women that drives desire
The team cautioned that it analyzed only observational studies, not clinical trials, so the study cannot say that these various risk factors are causing Alzheimer's, only that they accompany a higher likelihood of suffering it.
Nevertheless, Yu said he hopes the research will give doctors useful information in helping their patients avoid the onset of the disease.
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60f96030b8cf68be285fe5f3810d3235 | https://www.cnbc.com/2015/08/21/apple-looking-bearish-with-majority-of-tech-stocks-in-correction-territory.html?__source=fincont&par=fincont | Apple enters bear territory; tech stocks crushed | Apple enters bear territory; tech stocks crushed
Vschlichting | Getty Images
Shares of Apple entered bear market territory Friday, dropping more than 21 percent from their April 28 high of $134.54. After shares plummeted almost 6 percent to close at $106 for the day, Apple joined nine other Dow components already in bear market territory: Proctor & Gamble, IBM, Exxon, Intel, Walmart, Caterpillar, United Technologies, Chevron, and DuPont.
U.S. stocks traded down more than 3 percent across the board Friday afternoon, with the Dow hitting a session low after headwinds from pressures like lower oil prices, Chinese market volatility and lack of positive macroeconomic news. Apple is one of many technology companies feeling the pain.
Read MoreMarkets now: Dow, Nasdaq plunge 3% into correction
"China selling off, or China hitting an air pocket – that's a real thing," said Kevin Landis, FirstHand Capital Management CIO, on CNBC's "Closing Bell" Friday. "Ask anyone who's ever been there, there is this sort of recklessness that really is sobering, and you figure, they're going to drive into a ditch periodically. It looks like that's what's happening again right now."
Apple's stock price was modestly higher in after-hours trading.
"Apple has a lot of exposure there, and they've pinned a lot of their growth to that market and they're going to have to pull those expectations down a bit," Landis said. "I still think Apple's a growth story though. Still a really great, solid company. "
Along with Apple, tech blue-chip darlings like Facebook, which closed down almost 5 percent at a level 13 percent off its high, also fell victim to what looked to a forced sell-off, Landis said.
Read More Power Play: Sell-off creating opportunities in tech
As it happens, the S&P Tech Sector, one of the largest sectors in the S&P 500, is the second-worst performing sector of the week, down 3.3 percent week-to-date, according to CNBC analysis.
The sector selloff, which trails only the energy sector in severity, marks worst week since Jan. 30, when the sector lost 4.11 percent. The majority of technology index components—more than 63 percent—are trading down more than 10 percent from yearly highs.
Of the 68 components, 43 are off more than 10 percent from their 52-week highs, with 19 tech companies in "correction" mode (between 10 and 20 percent off the year's high) and another 24 in "bear" mode, off more than 20 percent from their highs.
Read More The S&P and the Dow just had worst day of the year
Indeed, just nine tech components are down less than 5 percent from their most recent 52-week highs: Alphabet's A and C class shares, credit giants Mastercard and Visa, domain company Verisign, software firm Citrix Systems, system design consultants TSS, financial services technology firm Fiserv and banking technology firm Fidelity National.
Here's a breakdown of the sector's most severe declines to the safest stocks this week:
Read More Hot IPOs that have sagged in 2015 thus far
—CNBC's Gina Francolla and Anita Balakrishnan contributed reporting to this report. This post has been updated to reflect Apple's stock price move, and the closing levels of U.S. markets Friday.
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bc479d7b55cf500d68056662572b1ba1 | https://www.cnbc.com/2015/08/21/china-market-mirroring-1929-crash-analyst.html | Chinese market mirroring 1929 crash: Analyst | Chinese market mirroring 1929 crash: Analyst
VIDEO2:2502:25China stocks to see 40% retracement: CEO Squawk Box Europe
Chinese stocks are set to fall another 9 percent in the next four or five days and are in danger of replicating the hefty losses seen in the U.S. exchanges in the Wall Street crash of 1929, an analyst has told CNBC.
Thomas DeMark, founder and CEO of DeMark Analytics, told CNBC Friday that the current turmoil on the Shanghai Composite index is already on course to echo the crash of 1987 and 2001, but could still fall even lower.
"That's what could happen," DeMark said, detailing the technical analysis that his company use to predict stock market declines.
29th October 1929.: Workers flood the streets in a panic following the Black Tuesday stock market crash on Wall StreetHulton Archive | Getty Images
"In 1929, the market declined 50.6 percent. So that was a warning that there was something more serious in the market breakdown."
DeMark added that his company turned bearish on China on June 12, just as the market reached a top and has - more or less – correctly predicted the downturn of 38 percent that has occurred since.
Market turmoil: Shanghai sinks 4%, DAX off 1%
He now sees the blue-chip index - which closed 4.3 percent lower Friday at 3,509.98 points - dropping to 3,282 points, or even 3,200 points. At this juncture, his technical models state there could be a 40 percent rally, which would mirror similar moves in 1987 and 2001. However, he added that a further fall was still possible which would echo world stock markets in the time of the Great Depression.
"We can't determine that right now. We think there's going to be great rally, meaningful rally off the 3200 (points), or even worse case 3282, and we'll see a retracement of 40 percent of the decline. And at that time we can reassess what the outlook is," he said.
Asian equities slump as China PMI fan growth fears
DeMark spoke of a "preordained" move in the Chinese stock markets. Authorities in Beijing have curbed short selling and several publicly listed firms have been able to suspend the trading of their shares over the last few weeks. Economists have highlighted that the Chinese officials might be trying to force a bottom in the Chinese markets or "shake out" foreign investors from speculating on its indexes.
This sort of "interference" creates a vacuum in the market, according to DeMark, who said it adds to a growing sense of pessimism.
DeMark is no stranger of making bold market predictions. In early 2014, he told CNBC that U.S. stocks had reached an "inflection point" that resembled the period prior to the 1929 stock-market crash. He did stress that certain caveats and preconditions would need to be met before "turning all-out bearish" but the market turmoil in U.S. stocks failed to materialize.
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60e59dde54cd5229283c86b7af77d62b | https://www.cnbc.com/2015/08/21/feels-like-1986-oil-on-track-for-longest-weekly-losing-streak-in-29.html | Oil recovers to end at $40.45, after hitting milestone | Oil recovers to end at $40.45, after hitting milestone
VIDEO1:3501:35Hogan: Markets won't stabilize till oil doesPower Lunch
VIDEO1:5301:53Expert: Oil gets to mid-$20sHalftime Report
VIDEO3:0803:08Has crude hit bottom? Not yet: Pro
VIDEO2:4602:46Safe energy betsSquawk Alley
U.S. oil prices recorded their eighth consecutive week of falls, the longest losing streak since 1986, after a sharp drop in Chinese manufacturing increased worries over the health of the world's biggest energy consumer.
U.S. oil futures fell below $40 a barrel for the first time since 2009 on Friday before settling down 87 cents, or 2.11 percent at $40.45 a barrel.
Baker Hughes also said that U.S. weekly rig counts rose for the fifth straight week, increasing by 2 to 674. Last year, U.S. oil rigs totaled 1,564.
Activity in China's factory sector shrank at its fastest pace in almost 6-1/2 years in August as domestic and export demand dwindled, adding to worries about lower consumption of crude in the second-biggest oil user.
Read More The oil bottom is in when the handcuffs come out
Asian and European stocks followed Wall Street lower as fears took hold of a China-led slowdown in global growth.
Ty Wright | Bloomberg | Getty Images
Brent oil was on track for its seventh weekly decline in eight, down 2.40 percent at $45.50 a barrel, after settling 54 cents lower on Thursday.
"The market is stuck in a relentless downtrend," said Robin Bieber, a director at London brokerage PVM Oil Associates. "The trend is down - stick with it."
Read More The oil bottom is in when the handcuffs come out
In late 1985, oil prices slumped to $10 from around $30 over five months as OPEC raised output to regain market share following an increase in non-OPEC production.
"Weighing on prices is the continued ample supply with crude oil builds in the U.S. and OPEC pumping at record levels," said Michael Poulsen at Global Risk Management. "Fear of slowing growth in China is increasing."
The dollar fell on receding expectations of a U.S. interest rate rise in September, providing some support for oil.
But technical price charts for almost all the big oil futures markets looked bearish, PVM's Bieber said.
"The only silver lining we are seeing coming from the United States is that refining rates remain high and that crude production continues to fall," Daniel Ang at Singapore-based Philip Futures said.
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b73458ed51f0f5b053de87f2e940ab54 | https://www.cnbc.com/2015/08/21/samsung-wants-you-to-test-drive-its-phones-for-1.html | The Tech Bet | The Tech Bet
VIDEO4:3104:31Samsung Apple warInternet
Samsung is calling it the ultimate test drive.
The smartphone maker is offering a 30-day trial of one of the latest Galaxy smartphones, for just $1.
If a customer isn't hooked on the smartphone after 30 days, they can return the phone—no strings attached.
Read More Smartphones record slowest sales growth in 2 years: Report
Samsung remains the global leader in smartphone sales. However it lost some in the second quarter to Apple and smaller rivals, according to tech research firm Gartner.
Earlier this month, Samsung released its newest phones—the Galaxy S6 Edge Plus and the Note 5—earlier than expected—well ahead Apple's September 9th event, where it is expected to unveil an updated version of the iPhone 6.
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190a1d6c66ea8c592de8ffc2a1b62f1f | https://www.cnbc.com/2015/08/21/wall-street-poised-for-another-torrid-day-of-trading.html | Wall Street poised for another torrid day of trading | Wall Street poised for another torrid day of trading
VIDEO2:4802:48Fear returns to markets as stocks suffer worst drop of 2015Squawk Box
After a torrid day on Wall Street Thursday, the worst to hit the markets in 18 months, U.S. stock index futures were pointing to another lower open on Friday.
The Dow futures were off 80 points, indicating a milder extension of Thursday's plunge.
Stocks sold off Thursday with the Dow down 358 points to 16,990 and the S&P 500 off 43, or 2.1 percent to 2,035. The selling was fueled by global growth concerns and uncertainty about when the Fed will move to raise interest rates.
Read MoreMarkets are in a technical mess
In Asia, Friday morning saw the Shanghai Composite slide 4.3 percent after disappointing data from China.
European markets also plunged, with the pan-European Stoxx 600 as much as 1.2 percent lower after the open amid worries over China and also Greece, where Prime Minister Alexis Tsipras resigned and called snap elections, expected to take place in September.
The only U.S. data out Friday is the manufacturing PMI report at 9:45 a.m. ET.
The dollar traded mixed, stronger against emerging market currencies and weaker against the euro, which crept towards $1.13.
Getty Images
In oil markets, Brent crude was trading at $46.38, down 0.51 percent, while U.S. crude was $41.12 a barrel, down 0.48 percent. This week saw U.S. crude hit a new six-and-a-half-year-low.
On the earnings front, Deere and Foot Locker reported results before markets open.
Read More Early movers: DE, FL, HPQ, GPS, CRM, SYY, NVS & more
Deere earned $1.53 per share for its third quarter, 9 cents above estimates. However, revenue was below forecasts and Deere also lowered its forward guidance. The company said it is being impacted by a downturn in the farm economy and lower demand for construction equipment.
Foot Locker earned 84 cents per share for its second quarter, 15 cents above estimates. Revenue was above analysts' forecasts as well, and a same-store sales increase of 9.6 percent exceeded estimates of a 6 percent rise.
CNBC's Peter Schacknow and Patti Domm contributed to this report
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319bd4e5b5790fc26be6f595baecb9dd | https://www.cnbc.com/2015/08/21/will-the-tech-stock-plunge-bleed-to-start-ups.html | Will the tech stock plunge bleed to start-ups? | Will the tech stock plunge bleed to start-ups?
Tech last week was a sea of red.
The Nasdaq 100 had its worst week since 2011. All 100 of its members fell, and about two-thirds of the index dropped by at least 5 percent.
The sudden turn, tied to a broader stock market selloff, threatens to derail a six-year rally, including five years of double-digit gains. The Nasdaq 100 is now down for the year.
Read MoreTech on track for worst week of year
So what does all this mean for the private markets, where valuations have been stretched by hedge funds, private equity shops and mutual fund companies acting as late-stage venture firms? More capital was invested in start-ups in the second quarter than in any period since 2000.
Benchmark's Bill Gurley published his viewpoints in an eight-part tweetstorm on Thursday, focusing on the renewed emphasis on profitability—or at least potential to get there—with the money in the bank.
tweet
That was before Friday's rout, which was just as bad as its predecessor. China has been the catalyst. Since the government of the world's second-largest economy devalued its currency last week, the notion that global growth is at risk has been the talk of the market.
Joe Horowitz, managing partner at Icon Ventures, calls it the "x factor that you can't always anticipate."
For venture capitalists like Gurley and Horowitz, this likely goes one of two ways. Either it's a "correction" that brings some level of rationality to a period of insanity and thus allows investors to value companies on real metrics. Or it's the start of a severe downdraft that locks up the IPO market and rubs the bright shine off so many prized venture darlings.
VIDEO5:4805:48Apple tips off tech tumble
In short, venture investors are crossing their fingers for a correction, and nothing more.
"The market has been so overpowered for such a long time that it's been a challenge for us to do the kind of deals we want to do," said Brian Jacobs, a partner at Emergence Capital, which invests in business software start-ups. "Ultimately a correction is healthy for the public markets and private markets as well. It gives us more room to grow from there."
There you have the positive spin. Deals that were too expensive a week or month ago all of the sudden become attractive as companies are forced to reel in their expectations. Valuation-conscious investors win.
Read MoreUber's rocky road in California
Venky Ganesan of Menlo Ventures offers up a driving analogy, which is appropriate given that his firm was an early investor in Uber.
"Greed is still driving the car, but fear is fighting for the steering wheel," he said.
In other words, just one ugly week isn't going to undo the greed that's been built up during an extended bull market. But you'd be ignorant to believe that start-up executives and board members aren't paying attention.
Is Ganesan nervous?
"One more week of this? You bet," he said. "This could very well turn out to be the inflection point."
VIDEO2:1902:19China out of bullets: InsanaPower Lunch
For Horowitz, it largely comes down to having bet on the right teams and at the right times through this whole cycle. Doing deals with capital efficiency and valuation in mind means you're backing businesses with a greater ability to weather the storm, he says.
But it depends on the extremity of the storm.
When fear takes over, investors tend to flee risky assets, and few are as risky as growth-oriented tech companies that are still proving out their model. If there's no appetite for tech IPOs over a long period of time and late-stage capital dries up, even some of the most promising venture-backed companies can be forced to resize their expectations.
Read MoreWhy one veteran VC is investor despite seeing a bubble
"When it becomes more than a correction, the pendulum swings so far in the opposite direction that appropriate valuations are no longer recognized and we go back into the dark ages," said Horowitz. "The ideal situation is this results in a correction and not more, and the IPO window stays open."
Either way, there was plenty for the tech world to ponder over the weekend.
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50e8fd420fc24713599464734cb3d58a | https://www.cnbc.com/2015/08/23/us-crude-dips-to-around-40-on-demand-concerns-supply-glut.html | US oil ends down at $38.24 a barrel; lowest since February 2009 | US oil ends down at $38.24 a barrel; lowest since February 2009
VIDEO3:4603:46Reality starting to bite: Oil expertHalftime Report
VIDEO1:1501:15Oil moves up from session lowsHalftime Report
VIDEO2:2602:26Oil headed to $32... here's why: ExpertSquawk Box
VIDEO1:3201:32Energy's big dividend dilemmaSquawk Box
VIDEO1:5301:53Main catalyst for oil prices?Worldwide Exchange
Oil prices tumbled more than 5 percent on Monday as markets worried about a China-led global economic slowdown that would drastically hit oil consumption at a time of plentiful supply.
U.S. light crude closed down $2.21, or 5.5 percent, at $38.24 a barrel, which was the lowest since February 2009. Steep losses last week capped the contract's longest weekly losing streak since 1986.
was trading down $2.70, or about 6 percent, at $42.80 a barrel, after hitting a session low of $42.51, its weakest since March 11, 2009.
Chinese stock markets suffered their biggest one-day drop since the financial crisis, stirring huge sell-offs in global equities and commodities, with more than 400 billion euros ($465 billion) wiped off .
Read MoreUS crude oil's break-even cost: How low can it go?
"Today's falls are not about oil market fundamentals. It's all about China," Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt, told Reuters Global Oil Forum. "The fear is of a hard landing and that things get out of the control of the Chinese authorities."
VIDEO0:5000:50No love for energy stocks
U.S. crude is now nearly 18 percent below its opening price at the start of the month and Brent is down about 16 percent.
Multi-year lows in oil prices have so far failed to trigger action from the world's top producers to rein in output, though Iranian Oil Minister Bijan Zanganeh said on Sunday that holding an emergency OPEC meeting could be effective in stabilizing prices, Iran's oil ministry news agency Shana reported.
Read MoreIn a sharp reversal, Gartman turns bullish on oil
There was a similar call by Algeria earlier this month, but other OPEC delegates said no meeting was planned.
Zanganeh also said Iran would defend its oil market share by ramping up production at any cost and as soon as possible.
"We will be raising our oil production at any cost and we have no other alternative," Zanganeh said. "If Iran's oil production hike is not done promptly, we will be losing our market share permanently."
Oil market speculators have raised their bets on a rebound in Brent prices. InterContinental Exchange data showed they had increased net long positions after four weeks of net sales.
Read More China is oil's biggest problem and here's why: Kilduff
In a sign that relations between Iran and Western powers are improving, Britain reopened its Tehran embassy on Sunday.
Several oil and gas companies, including representative from Shell, traveled to Iran with foreign minister Philip Hammond.
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8e58a0932f6f2f05ca6aeed884ffd192 | https://www.cnbc.com/2015/08/24/amid-carnage-strategists-predict-bounce-go-all-in.html | Amid carnage, strategists predict bounce; 'go all in’ | Amid carnage, strategists predict bounce; 'go all in’
VIDEO3:4903:49Sniffing out bargains Trading Nation
After an earthshaking selloff Thursday and Friday, and despite early indications of another brutal day Monday, several market strategists are already calling for a bounce—and looking out for potential opportunities amid the wreckage.
Read MoreDow futures skid over 450 points as Wall Street preps for steep selloff
"Key indicators reach required levels to go 'all in,'" Canaccord Genuity's chief U.S. strategist, Tony Dwyer, wrote in a Monday morning note. "With such pronounced weakness underneath the widely followed indices, we believe much of the global economic and Fed-related uncertainty is largely priced into the average stock, and now even the closely watched indices."
Dwyer had been waiting for four indicators to signal that it was time to take an aggressively bullish position on stocks: A jump in the CBOE Volatility Index to 20 or higher; a falling percentage of stocks above their short-term moving averages; weakening market momentum according to a separate technical indicator; and a declining number of bulls according to the Investor Intelligence newsletter writer survey.
"All four of our intermediate-term buy signals have hit required levels that surround a significant and sustainable low," Dwyer wrote.
Read More Five charts that prove this selloff is serious
For RBC's chief U.S. market strategist, Jonathan Golub, the lack of a clear catalyst for a swift selloff is a bullish tell.
"What has been most interesting about last week's 6 percent market decline is the absence of a visible catalyst. 2Q corporate results have broadly surprised to the upside and signs of global financial distress remain well-contained," Golub wrote in an early Monday note. "History shows that buying stocks following a spike in volatility in the absence of a well-defined catalyst is a winning strategy."
Meanwhile, Oppenheimer's chief market strategist, John Stoltzfus, attempts to situate the sudden selling into a broader context.
"Ironically but not atypically, it is little or no surprise that for all the marketplace chatter a little while ago about the need to see a pullback to get valuations in line, stocks more attractively priced and an entry point more clearly defined, now that stocks may well be 'on sale,' concerns about just how much more stocks could fall from here appear to be gripping more than a handful of investors and keeping not just a few from searching for babies that got thrown out with the bathwater," Stoltzfus wrote Monday.
Running a screener based on dividend yield, analyst price target versus current share price and the percentage drop since the end of April, Stolzfus recommends investors look to names including Coach, Best Buy and Microsoft.
Disclaimer
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98e80f220d201ef3d4446ba3ebae440a | https://www.cnbc.com/2015/08/24/market-talk-suddenly-turns-to-specter-of-qe4.html | Market talk suddenly turns to specter of QE4 | Market talk suddenly turns to specter of QE4
VIDEO1:0201:02Slow rate hike wouldn't hurt economy: StrategistSquawk Alley
Market chatter about what the Federal Reserve's next steps will be suddenly has shifted from when it will raise rates to when it will offer more stimulus.
Mind you, no one believes the U.S. central bank is about to start printing money again anytime soon. However, there is talk that faced with a slowing global economy and a domestic market dependent on cheap debt, it's only a matter of time before the spigots get turned on once more.
"The Fed is not going to raise rates. They are at zero forever," said Peter Schiff, head of Euro Pacific Capital and one of the most well-known and impassioned of all the Wall Street Fed critics. "The Fed is not done with QE, they're just getting started. The Fed is doing QE4, QE5. This is a never-ending process."
The "QE" reference, of course, is to quantitative easing, the bond-buying program that added about $3.7 trillion to the Fed's now-$4.5 trillion balance sheet since late 2008. Three rounds of QE, plus the balance sheet-neutral Operation Twist, have helped boost the stock market dramatically, with the rising more than 190 percent off the March 2009 lows. But the impact on the real economy has been less tangible.
In addition to the previous rounds of QE, the Fed has kept its key interest rate near zero, holding down lending rates and keeping borrowing costs low for the $8 trillion in debt the government has added since the financial crisis.
Janet YellenGetty Images
With no room to take rates lower, markets in near-free fall and worries building over a global recession, another round of easing would be the only monetary policy option left.
Read MoreThe Fed rate hike speculation is getting crazy
"I don't believe they're ever going to raise rates, because they can't do it," Schiff said. "People actually believe in the legitimacy of the U.S. recovery, they believe in the Fed's rhetoric. The truth is, everything has gotten worse. All the Fed did was blow a bigger bubble. All they did was interrupt the financial crisis."
While unlikely to take any specific action in the near term, Fed officials could start leaving a trail of clues in upcoming public speeches. No time would be better, for instance, than the Aug. 27-29 retreat at Jackson Hole, Wyoming, the very site where then-Fed Chairman Ben Bernanke planted the seeds for QE2 back in 2010.
"It's not about QE happening. If the perception of QE (happening) goes from zero to 18 percent, that's a huge impact," said Lawrence McDonald, head of U.S. macro strategy at Societe Generale. "Maybe even have one Fed governor, the most dovish of the doves, like (Minneapolis Fed President Narayana) Kocherlakota ... lay it out there. If one of them does it, look out."
For now, the market's deliberations have focused on the timing of rate hikes, and the current verdict is that the first one since June 29, 2006, won't happen until January 2016. The CME's FedWatch indicator shows just a 24 percent chance of a move in September and a 49 percent chance in December.
Read MoreFed may have just gotten a red light for rate hike
Economist Michael Pento, founder of Pento Portfolio Strategies and a frequent Fed critic, said the central bank has work to do before it could take viable steps toward another round of QE.
"For the Fed to go back to QE, there are two problems: First, they'd have to admit that everything they've done since 2008 has been a complete failure," Pento said. "Then, you have the problem that QE doesn't really affect fundamentals in the economy, it only affects asset prices."
Indeed, a recent paper by Stephen D. Williamson, St. Louis Fed vice president, said there was no evidence that QE provided the economic help that its supporters touted.
Read More'Forward guidance' didn't work, either
Also, similar easing programs haven't done much elsewhere in the world. Japan's aggressive QE couldn't prevent a 0.4 percent contraction in second-quarter growth, while the euro zone is barely above water despite its own efforts, with just a 0.3 percent improvement in gross domestic product for the same period.
"Sixty trillion dollars in debt and seven years of ZIRP later, anyone who thought this was going to be a smooth and easy transition to escape velocity is getting a rude awakening," Pento said. "That fantasy is shattering."
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20d92703b467b74202bf088cf40efe15 | https://www.cnbc.com/2015/08/24/stocks-dramatic-slide-hits-etfs.html | Trader Talk | Trader Talk
VIDEO1:4401:44Ugly day for banksMarket Outlook
There were some dramatic drops in stock prices at the open on Monday. There were dramatic drops in prices of ETFs as well.
This is not surprising. ETF market makers base the price of ETFs on the liquidity and the pricing of the underlying constituents.
Many stocks Monday morning took several minutes to open. There was a very high level of uncertainty about what the price was of those underlying constituencies.
What happens when you have to open an ETF when, say, half of the stocks are not even open?
The market maker has to make certain assumptions. Every market maker has proprietary ways to price their ETFs, but it's not that mysterious. In the absence of a trade, they make a guess.
Remember, there was enormous selling at the open. The Dow dropped nearly 1,100 points in just five minutes.
No one has ever seen that kind of drop in five minutes. You are a market maker, and you now have to make a certain assumption about stocks that are not even open yet.
What will happen is this: ETF pricing is going to be very wide until there is certainty in the underlying prices.
And that is what happened on many ETFs. There was, for lack of a better word, "pricing havoc" in some of them.
Still, I saw some ETF trades that had scratching my head.
Take the S&P Dividend ETF , a basket of high-dividend paying stocks, such as Coke, Johnson & Johnson, Colgate.
It closed Friday around $75, opened at $70.45, and was immediately halted. When it reopened five minutes later, at 9:37, there were several trades at $46.22. It did eventually recover, but only when the market came back.
Wow, that is a big drop. And this was at a time when most of these stocks were likely open.
What is strange is that the bid was $59.62, the ask was $59.63 when this occurred.
If you are going to be a market maker, it would certainly seem to be a requirement to have a reasonable bid/ask spread.
I am not sure what happened here, but it's worth an inquiry.
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626dd6d2f52e27325fcb592ca8250ea3 | https://www.cnbc.com/2015/08/24/strategists-arent-ready-to-say-the-bull-run-is-over.html | More selling may be ahead, but bull market called not dead yet | More selling may be ahead, but bull market called not dead yet
VIDEO1:1001:10Bull market still intact... for now: Tom LeeSquawk Box
After the worst risk-off day since the financial crisis, more selling is expected but strategists are so far unwilling to say the six-year bull market is on its death bed.
Stocks started Monday with one of the ugliest and most difficult opening selloffs in memory, and the dramatic move in the Dow was the biggest intraday swing ever.
The Dow was off 1,089 at its worst level, before recovering more than 800 points, but it finished the day 588 points lower at 15,871. The volatile trading was across asset classes, with some of the wildest moves in other financial markets, occurring around the stock market open.
"It was most acute in the currency market because I think so many people were misaligned in their positions. We just saw one of the sloppiest, most volatile New York opens that I can remember," said Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management. "Every single market, at this point, is totally interlinked by arbitrage. When there is a circuit failure in one, it just washes through the others. The currency market is no longer a gated community."
The dollar index was more than a percent lower, but the moves by other currencies against the euro and yen were far more dramatic. The S&P 500 closed down 77 at 1893, after falling more than 100 points in early trading.
"There were several wacky things. The ETFs, I think, were mispriced and some were trading out of line with the equities. You couldn't get a VIX quote for the first half-hour," said Art Cashin, director of floor operations at UBS. "This was not the finest hour for market mechanics." The NYSE also invoked a rule that allowed stocks to open without indications, which allowed the market to open sooner but with bigger moves in stock prices.
Ari Wald, market technician at Oppenheimer Asset Management, has been expecting a correction, and he says this one's not over. "We think it's going to take more than one day," he said. "It'll take more than a few days to stabilize from an eight-month breakdown."
Wald said the market could follow the pattern of 2011, with stocks recovering in an oversold bounce and then another wave of selling taking the market to a bottom in October.
"Maybe we finally have a 10 percent correction ... but the bull market is still intact," said Laszlo Birinyi of Birinyi Associates.
There are a number of economic reports Tuesday that markets will be watching. S&P/Case-Shiller home prices and FHFA home price data are released at 9 a.m., and new home sales are at 10 a.m. There is consumer confidence for August at 10 a.m. The Treasury also auctions $26 billion in 2-year notes at 1 p.m. ET.
"I'm hopeful that we may have pulled the Band-Aid off fast, where we now look oversold in some places. The other good news is we have quite a bit of U.S. economic data coming out this week, especially since we think it's going to be pretty good. That helps," said Bill Stone, chief investment strategist at PNC Wealth Management.
At its low point Monday, the S&P 500 was off 5.3 percent from Friday's close. Its decline last week was 5.8 percent, so it already reached correction territory on an intraday basis. Commodities were also slammed, with U.S. oil futures falling more than 5 percent to $38.24 per barrel.
Read MoreLooking for strength in the market? Look no more
Before Tuesday trading, markets are also looking for some possible action from China. Shanghai stocks were down 8.5 percent Monday, and analysts say the market had expected a new stimulus announcement that never came.
Currencies are expected to again be very volatile if no announcement comes overnight from Beijing.
"We saw some of the widest ranges certainly since the global financial crisis. Not so much on the dollar but on some of the euro and yen crosses, double-digit percentage ranges," said Vassili Serebriakov, currency strategist at BNP Paribas. For instance, the New Zealand dollar moved in a 15 percent range against the yen Monday.
"The main driver is the big unwind or risk positions. Basically, the market has been funding risk in yen and euros, so those currencies are doing the best right now. When equities are weak, those are the currencies that are going to rally," he said.
Stocks were already crushed in last week's sharp selloff coming into Monday morning, but a big downdraft overnight in China and further selling in equities and commodities built up a negative head of steam in a thinly populated late summer market.
"Everyone's scared. This is probably a good thing. I think we'll trade around a while," said Jim Paulsen, chief investment strategist at Wells Capital Markets. Stocks have been reacting to fears that China's stock market selloff is really signaling a severe economic slowdown in the world's second-biggest economy.
Paulsen said the market's correction is a healthy sign, and it's possible it will temporarily reach as much as a 20 percent decline, or bear market territory. The last double-digit correction was four years ago, and the S&P 500 is up 73 percent since that time.
"It's a close call. It wouldn't shock me, if it happens," said Paulsen. "I'd been thinking 10 to 15 percent correction. We're pretty much there. Could it go down and challenge 20 percent? It's possible. I think the S&P is going to bottom in the 1,800s, pretty close to a 20 percent decline." Paulsen said a 20 percent drop would also signal a buying opportunity.
At the open Monday, the Dow instantly plunged 500 points within the first minute, and took another 300-point dive within the second minute of trading. Some blue chips temporarily fell more than 10 percent, and some were off as much as 20 percent. For instance, J.P. Morgan fell 21 percent to $50.07 but was trading back in the $62 range, a 2.5 percent decline. Pfizer and Verizon were each down 15 percent.
On the Nasdaq, the double-digit selling was also seen, with Baidu briefly down more than 30 percent and Starbucks off nearly 20 percent.
"That's why I've been so adamant against all this high-frequency trading, when I see stocks open down 5 points lower at 9:30 and they are trading right back up again," Birinyi said. High-frequency trading accounted for an average 49 percent of Friday's 10.6 billion trade volume, according to TABB Group. During the peak levels of high-frequency trading in 2009, about 61 percent of the 9.8 billion of average daily shares traded were executed by high-frequency traders.
According to Dow Jones, trading in stocks and ETFs paused more than 1,200 times Monday. Five-minute trading pauses are triggered by increases or declines of more than 5 percent, and they are usually in the single digits on a normal day, the news wire said.
As stocks sold off Monday, commodities fell as well and buyers moved into the Treasury market. The 10-year note yield was also very volatile, as low as 1.9 percent ahead of the opening but back above 2.03 percent in afternoon trading.
Read MoreOne of Wall Street's biggest bulls throws in towel
So far, the S&P 500 is off 10 percent for the month of August, and at its low, the decline from May's high was more than 12 percent.
"I just look at this (selloff) as a good thing. We're doing what we need to do to make this bull market last. We had a valuation problem of 19 times earnings. There's no way we could handle higher rates with the market selling that high," he said.
Birinyi said the circumstances around the market selloff are eerily like in 1998, when the Russian financial crisis led U.S. stocks to wipe out the year's entire double-digit gain by early August. But stocks reversed course and ended the year with highs. He expects the market to rebound again this year.
"It's the end of August. Firms aren't fully staffed. It was just an unwind. There's continuing pressure, lack of a solution and the concern is that once again the Fed is back to square one," he said.
Traders have increasingly been betting the Fed will not raise rates in September, as expected by many economists. The recent market chaos is reinforcing that view, and Barclays on Monday moved its forecast for a rate hike to March from September.
Paulsen said the market may acutally benefit from the selloff in commodities. While viewed as negative, it could in fact be a positive. He said in three of the last four times that commodities collapsed, it was the middle of a recovery, not the beginning of a recession.
"I think economic growth is going to accelerate across the globe rather than die. Recessions occur after commodities prices go up, not when they go down. When they go down, it's a huge stimulative event," he said.
The NYSE Monday also invoked a seldom-seen rule that let the market open more quickly but also helped contribute to the plunge, traders say. Stocks were allowed to open without indications, meaning traders did not have to wait for an orderly pairing of bids and offers that could have delayed the stock market opening significantly. So instead, many stocks opened sharply lower—in double-digit declines—and the Dow was off 1,089 points momentarily.
"Once they invoke Rule 48, everyone is like, 'Oh my God, this is going to be a disaster, and it was,' " said one trader. "You put limits on orders and you end up missing them by a nickel then another and another.... A lot of people were trying to sell stocks on the open and they not were getting reports. There were missed reports. It was kind of not orderly, the way electronic trading should be."
"Some of the prices where they opened these stocks, were just insane. I know a lot of people are screaming. At the end of the day, you've got electronic trading, and they were just running roughshod in this marketplace. It's just amazing," said the trader, who asked not to be named.
Another trader, who oversees a Wall Street trading desk, said he did not fault the NYSE for pushing to open the market more quickly but says there wasn't real panic in the big sweep lower, indicating to him that there's more selling to come.
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985869b28b1db87b7d3f71858cfc8c15 | https://www.cnbc.com/2015/08/24/the-fed-hike-could-lower-interest-rates.html | The Fed hike could LOWER interest rates | The Fed hike could LOWER interest rates
VIDEO1:0201:02Slow rate hike wouldn't hurt economy: StrategistSquawk Alley
VIDEO2:5902:59What's the Fed to do?Squawk Box
VIDEO3:1503:15Robert Heller: Overregulation the problem
The public has been seemingly desperate for the Federal Reserve to raise interest rates.
"Savers are getting creamed here," has been a common refrain.
"Banks are getting crushed."
"Zero percent sends a bad message, it undermines confidence."
Even the experts seem upset by the inertia: "It's simply time," has become another popular phrase.
Imagine what would happen, then, if the Fed raised rates—and they dropped even lower, instead. That's effectively what's happening today.
Janet YellenKevin Lamarque | Reuters
Even if the Fed hasn't raised interest rates, it has stopped lowering them, and it has stopped the balance-sheet expansion that replaced rate cuts once its target rate hit zero.
That, combined with a stronger U.S. dollar, means despite rates still being near zero, the Fed has effectively been tightening monetary policy.
And yet, longer-term interest rates are dropping. The yield on the 10-year U.S. Treasury note was nearly 2.3 percent at the beginning of August; it just dropped back below 2 percent amid the global stock-market rout.
Read More Markets seek clarity from China, Fed
That is in sharp contrast to widely held expectations for rates to rise this year—a call that has been repeated, and repeatedly wrong, for many years now, even as the Fed has signaled it is about to hike rates for the first time in over a decade.
Remember that all the Fed does is set a targeted extremely short-term, overnight interest rate that most impacts banks and other financial players that deal directly with the central bank.
What happens to longer-term interest rates, like the benchmark 10-year Treasury note that sets most mortgage rates, is a different story.
Sometimes, all interest rates are moving higher at the same time. That's because the market thinks inflation will be higher over a longer time horizon, and so demands a higher yield on longer-term securities.
Today though, the market isn't so convinced that inflation will be higher over time.
"More than half the components of the consumer price index have declined in the past six months," observed former Treasury Secretary Lawrence Summers, who just warned that if the Fed raises rates at its next meeting, in September, it will be making a "historic mistake."
Read More Grant: Central bank mispricing is backdrop to selloff
The collapse in oil and other commodity prices has added renewed downward momentum to the global inflation cycle. China, the biggest driver of global growth the past decade, is notably slowing and already experiencing deflation on the wholesale-price level. Big markets across the Middle East, Asia, and Latin America are in turn slowing too.
Market-based measures of inflation expectations in the U.S. continue dropping, now pricing in less than 2 percent annual inflation several years out. That indicates "a serious and sustained undershoot of the inflation target," said Michael Darda, chief economist and market strategist at MKM Partners, in a recent note to clients.
That in turn is pulling down the yield on longer-term interest rates.
The more the Fed tightens policy against this backdrop, with slowing global growth, falling inflation, and a flight to the U.S. dollar, the more those long-term inflation expectations could drop, dragging yields down with them.
Former Fed Chair Alan Greenspan once called this effect, when longer term yields were falling even as the Fed was steadily raising short-term rates back in 2005-06, a "conundrum."
Today, he says he thinks this behavior, also being witnessed today, is rather logical—and that the "conundrum" may actually be prior periods when higher short-term rates begat higher long-term rates as well.
What's all this mean for those desperate for higher rates?
That paradoxically, the best way to get them is likely for the Fed to not hike at the moment.
"If the Fed remains on the current course," said Darda, the risk of a "premature" rate hike, and hence a return back to zero during the next downturn, "will likely rise significantly."
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a009f158eac59bee0fd9b0ae89a1a9ea | https://www.cnbc.com/2015/08/25/early-movers-bby-dsw-aapl-tol-more.html | Early movers: BBY, DSW, AAPL, TOL & more | Early movers: BBY, DSW, AAPL, TOL & more
Check out which companies are making headlines before the bell:
Best Buy – The electronics retailer beat estimates by 15 cents with adjusted quarterly profit of 49 cents per share, with revenue also beating forecasts. Same-store sales rose 2.7 percent, compared to the Thomson Reuters forecast of a 1.0 percent increase.
JPMorgan Chase – CLSA analyst Mike Mayo upgraded the bank's stock to "buy" from "outperform", citing a resilient balance sheet and earnings stability.
DSW – The shoe retailer matched estimates with quarterly profit of 42 cents per share, but revenue and a same-store sales increase of 1.8 percent both missed analyst projections. The company did say profit margins were expanding while the merchandise mix is shifting in a more favorable direction, and it remains confident in its outlook.
Sanderson Farms – The poultry producer fell substantially shy of the $2.90 consensus estimate with quarterly profit of $2.27, while revenue was also below forecasts. The company said a key factor in the quarter's results was continued pricing pressure.
Apple – The stock was upgraded to "outperform" from "market perform" at Wells Fargo, which cites valuation after the recent decrease in the stock's price and reassurances about China from CEO Tim Cook in an email to CNBC's Jim Cramer.
Toll Brothers leads our list of stocks to watch, with the luxury home builder reporting a 12 percent rise in third quarter orders. Earnings and revenue were roughly in line with estimates, although profits were down from a year earlier.
Bank of America – The stock was upgraded at Bernstein to "outperform" from "market perform" on a valuation basis, with a similar move at Baird.
American Eagle – The stock was upgraded to "outperform" from "market perform" at FBR, which points to the teen apparel retailer's consistent execution.
Sherwin-Williams – The paint maker's shares were upgraded to "buy" from "neutral" at Sterne Agee, which said the company's U.S. and Canadian markets are improving and input costs are declining.
Macy's – The retailer's shares were upgraded to "hold" from "sell" at Deutsche Bank, following a recent decline in the stock.
SolarCity - Chairman Elon Musk bought nearly 124,000 addition shares at just over $40.48 per share. That follows a slide in the solar equipment maker's shares that came after hedge fund manager Jim Chanos told CNBC last week that he's short SolarCity stock.
Toyota – The automaker said it is testing air bag inflators made by two competitors to Takata, the company whose equipment has been involved in a massive worldwide recall.
BHP Billiton – The mining company saw its profit drop to a 10-year low during its latest quarter, amid plunging prices for iron ore, copper, coal, and oil. The company is planning additional spending cuts, in part to keep its pledge not to cut its dividend. CEO Andrew Mackenzie will be a guest on Squawk On The Street at 9:00 a.m. ET.
Syngenta – Syngenta shares are jumping this morning after Monsanto reportedly sweetened its prior takeover offer for the Swiss chemical maker to $47 billion, an increase of 4.7 percent over the prior offer.
Boeing – Boeing raised its forecast for aircraft demand in China over the next 20 years by five percent, estimating 6,330 aircraft purchases during that period.
Sears Holdings – The retailer hired former Johnson & Johnson executive Lynn Pendergrass as president of hardlines, seeking to boost its Kenmore, Diehard, and Craftsman brands.
Visa – The credit card issuer issued a survey saying its online shoppers are 17 percent more likely to complete purchases than customers who use PayPal .
Sun Life Financial – Sun Life is in talks to buy the employee benefits unit of insurance company Assurant, according to a Bloomberg report.
Questions? Comments? Email us at marketinsider@cnbc.com
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a5c5ac1978987f32198b9ff36e34a16e | https://www.cnbc.com/2015/08/26/ochsner-hospital-powerhouse-forged-in-the-wake-of-katrina.html | Ochsner: Hospital powerhouse forged in the wake of Katrina | Ochsner: Hospital powerhouse forged in the wake of Katrina
VIDEO2:2802:28Ochsner's rise after KatrinaHealth and Science
Most hospitals don't have their own navy. Ochsner Baptist in New Orleans does, complete with a fleet of rescue boats and staffers who undergo water rescue training—all because of Hurricane Katrina.
Ten years ago, Dr. Glenn Casey and others at the hospital scrambled to find boats, in order to evacuate patients and staff. He said it became clear that they had to act because rescuers would be a long time in coming.
"We realized that the floodwaters had taken over throughout the city, and we realized that we were isolated," recalled Casey, who was an anesthesiologist at the hospital, which at the time was known as Memorial Medical Center.
"The hospital had a couple of outboard motor boats, but we also got very ingenious in that we saw boats in the neighborhood that were just floating," he said.
Ironically, Katrina enabled Ochsner to…hit the reset button.Lisa Goldsteinassociate managing director, Moody's
Patients and staff of the Memorial Medical Center in New Orleans are evacuated by boat after floodwater surrounded the facility on Aug. 31, 2005.Bill Haber | AP
They cobbled together a small fleet of boats and helped save dozens of patients and staffers that week, after the waters rose, flooding the hospital's cooling systems and its backup generator. More than 40 patients who were too sick to be moved died at the facility.
Casey and others would spend much of the following year trying to save the hospital itself.
"I had practiced there for 30 years. I was born there. I couldn't see that institution going away," he said.
Tenet Healthcare owned Memorial and two other hospitals in the area. But after Hurricane Katrina, the hospital operator was reticent to invest in reopening its facilities. Hospitals in the area were closing.
Nearly half of New Orleans' population had fled after the storm, and the local economy was in rough shape.
"It was a market that … went from over 2,000 hospital beds, to—shortly after Katrina—just 500," said Lisa Goldstein, associate managing director at Moody's and a not-for-profit hospital analyst.
Katrina anniversary: Will New Orleans levees hold next time?
How we rebuilt New Orleans
When Tenet chose to sell, Ochsner stepped up to buy all three facilities.
"Over the past 10 years since Katrina, they have grown rapidly … through partnerships, acquisitions and strategic affiliations," said Goldstein. "Ironically, Katrina enabled Ochsner to … hit the reset button."
The board saw an opportunity in the wake of the disaster to play a bigger role in the future of New Orleans and in the region's health-care system, said Ochsner Health System CEO Warner Thomas.
"For a lot of reasons, a lot of people said, 'This is our chance to do something different. This is our chance to be bold,' " he said. "Our board said we've got to bet on New Orleans and take a leadership position in health care."
If not for the storm, Ochsner might have gone on to be acquired by a larger rival, as the hospital industry has undergone a massive wave of consolidation over the last decade. Instead, it has expanded through acquisitions and partnerships, to become Louisiana's largest health system.
It now owns nine hospitals and has partnerships with more than a dozen other facilities.
Memorial was renamed Ochsner Baptist, in honor of its original roots as a Southern Baptist hospital. The building underwent a massive gut renovation, which was completed two years ago.
"We've invested well over $100 million of resources," said Thomas. "And today it's a regional destination for women's care."
A big chunk of resources were invested in moving the building's emergency backup systems well above the highwater mark from Katrina, including a massive generator that is able to run all of the hospital's systems. In addition, water and fuel pipelines have been installed to make sure the generator can keep running.
And then, there's that naval fleet.
"We don't anticipate having to need them," explained Thomas, "but if we did, we're prepared."
But beyond another hurricane, analysts say the next big challenge for Ochsner and other not-for-profit hospitals will be navigating the consolidation wave among the large insurers.
Moody's analysts see the proposed mergers between Aetna and Humana, and Anthem and Cigna as a negative for hospitals. More than half of hospital revenues are now subject to negotiation, with insurers playing a larger role in managing government Medicare and Medicaid programs, in addition to private insurance plans. Moody's expects hospital reimbursement rates could face new headwinds starting in 2017 if the insurance mergers are approved.
The deals could take more than a year to gain regulatory approval, so hospitals need to use the time to get their operating budgets in order, said Moody's Goldstein.
"Many are already getting ready by looking at their cost structure, becoming very efficient in their operations," Goldstein said.
At Baptist, they feel they're prepared, for most anything.
"We were able to become very flexible" after Katrina, said Casey, "which is what you need to be in today's modern health-care field."
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e285172c81cc547a6d79707544cce0b8 | https://www.cnbc.com/2015/08/26/rentboycom-ceo-and-six-employees-arrested-on-prostitution-charges.html | Rentboy.com CEO and Six Employees Arrested on Prostitution Charges | Rentboy.com CEO and Six Employees Arrested on Prostitution Charges
Law enforcement officers take evidence from the Manhattan offices of Rentboy.com in New York August 25, 2015. U.S. authorities on Tuesday announced the arrest of the chief executive officer and six employees of Rentboy.com, which prosecutors described as the largest online male escort service.Brendan McDermid | Reuters
Federal authorities in New York City have shut down online male escort service Rentboy.com and arrested the chief executive and six current and former employees on prostitution charges.
Prosecutors announced the charges Tuesday against CEO Jeffrey Hurant and the other defendants. Disclaimers on New York-based Rentboy.com had said its listings were for companionship and not for sexual services. But a federal complaint unsealed Tuesday in federal court in Brooklyn alleges that in reality the site, founded in 1997, was designed to advertise prostitution.
"As alleged, Rentboy.com attempted to present a veneer of legality, when in fact this Internet brothel made millions of dollars from the promotion of illegal prostitution," Kelly T. Currie, acting United States attorney for the Eastern District of New York, said in a statement.
More from NBC News: Accused killer of 8 in Texas speaks out Ashley Madison data dump may be linked to suicides, police say Microsoft says more than 75 million devices running Windows 10
Later on Tuesday, federal agents raided the Manhattan headquarters of Rentboy.com and served warrants authorizing the seizure of over $1.4 million in proceeds from six bank accounts. Prosecutors say Rentboy.com grossed over $10 million between 2010 and 2015.
The seven defendants are charged with conspiring to violate the Travel Act by promoting prostitution.
—The Associated Press contributed to this report.
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8f9f4b1c2df0758143742f116d41d2b8 | https://www.cnbc.com/2015/08/26/tcw-prepare-for-the-great-deleveraging-in-bonds.html | Federal Reserve Board Chair Janet YellenGetty Images
Another volatile session in the bond markets Wednesday after New York Federal Reserve president William Dudley scaled back the prospect of a September rate hike, calling the idea "less compelling" than a few weeks ago, in light of the recent global market turmoil.
Read MoreFed's Dudley: September rate hike looks less compelling
Most U.S. treasury bond prices strengthened on Dudley's comments, erasing earlier losses.
Benchmark 10-year Treasury notes were up 3/32 in price for a yield of 2.122 percent, down 1 basis point from late on Tuesday. They were down as much as 10/32 earlier, hitting a one-week high in yield at 2.168 percent.
So how do you play the $12.6 trillion Treasuries market in light of Dudley's dovish comments and continued worries about China's economy?
Laird Landmann is one of four managers for the $66.7 billion MetWest Total Return Bond Fund for bond giant TCW.
He told CNBC's "Power Lunch" Wednesday many investors will start to radically rethink risk preferences in their portfolios.
"Fundamentals are stretched, risk is rising, liquidity is terrible and a 'great deleveraging, or massive reduction in the level of U.S. debt, is on the horizon. We've been in the sunshine for years so it's not surprising, actually, to expect one."
Landmann said in preparation for the deleveraging ahead, his fund has lightened up on corporate credit and high yield. "We are cutting risk in structured products, like commercial mortgage backed security and and non-agency CMBS, as well."
Another part of the market Landmann suggests avoiding is emerging market bonds. "The recent cracks in the global market these past few sessions is yet another example of why emerging markets will lead the impending deleveraging cycle."
Read More
MetWest Total Return Bond Fund (i) holds a five star rating from Morningstar. The one year return is up over 3.67 percent and up 10.28 percent over the past five years.
Landmann is part of the TCW fixed income team that has been nominated 8 times for Morningstar’s Fixed Income Manager of the Year award and winning in 2005.
TCW manages approximately $180 billion across fixed income, equities, emerging markets and alternatives
VIDEO3:3003:305-star bond playsPower Lunch
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ba9f7903a1faa873977a621f31cb4d37 | https://www.cnbc.com/2015/08/27/how-crowdfunding-can-speed-up-hyperloop-and-more.html | How crowdfunding can speed up Hyperloop and more | How crowdfunding can speed up Hyperloop and more
VIDEO2:4102:41Crowdfunding for heavyweightsInternet
Crowdfunding isn't just for the little guys anymore. Well-known companies are getting in on the act, too.
The big-name projects seeking crowdfunding include everything from household appliances from General Electric to the Hyperloop—the high-speed transit concept envisioned by Elon Musk.
Hyperloop Transportation Technologies, the company that plans to build a five-mile test track in California next year, was born out of a crowdfunding campaign at JumpStartFund. The track's construction is estimated to cost $100 million, CNBC previously reported.
Read MoreHyperloop moves closer to becoming reality
The proposed Hyperloop would be a transportation method in which pods could potentially carry passengers at more than 700 mph using tubes and vacuum, according to Musk's SpaceX, which focuses on commercial space travel.
GEc has also bet big on the crowdfunding model. Last year, the conglomerate partnered with Local Motors to develop FirstBuild, a website that connects crowdfunders with engineers and manufacturers. One of the program's products—a "nugget" icemaker—has raised $2.5 million on IndieGogo.
ET3 Hyperloop conceptSource: ET3
Another big company, Westinghouse, has used crowdfunding to back the development of a home door lock that uses fingerprint recognition, voice recognition and a camera to unlock doors. As of Thursday morning, the firm's Indiegogo campaign has drummed up more than $23,000 for that device.
But some small businesses have actually achieved exponentially more funding.
Affordable 3-D printer maker Deltaprintr raised $236,451 on Kickstarter, and Dame Products raised $790,622 on Indiegogo to fund the manufacturing of a couples vibrator.
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088eabc0a0607a298d8e642456f81d55 | https://www.cnbc.com/2015/08/27/will-the-rally-hold-for-a-second-day.html | Will the rally hold for a second day? | Will the rally hold for a second day?
Stocks rallied for a second straight session Thursday, amid a round of positive economic reports, rebounding from the recent plunge in global markets that sent major averages into correction territory.
Will the rally hold for a second day? Tell us in the poll below:
Dow, Nasdaq close out of correction as stocks extend rebound
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c50165a24267bb1eef2473ac38df3b43 | https://www.cnbc.com/2015/08/28/how-will-stocks-close-out-the-week-on-wall-street.html | How will stocks close out the week on Wall Street? | How will stocks close out the week on Wall Street?
Stocks fluctuated in a narrow range on the last day of a choppy trading week. As of Thursday's close, the Dow and S&P were approximately up 1 percent for the week. Will the gains hold or will we reverse?
Tell us what you think in the poll below:
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42d9bd746feea4d8a851dba56325af6f | https://www.cnbc.com/2015/08/28/stocks-open-sharply-lower-fed-vice-chair-live-1120-et.html?utm_source=wnd&utm_medium=wnd&utm_campaign=syndicated | Nasdaq ends higher in record weekly reversal | Nasdaq ends higher in record weekly reversal
VIDEO1:1301:13Pisani: Big movement in energyPower Lunch
VIDEO3:1703:17Fed willing to accept some volatility: LiesmanPower Lunch
VIDEO3:0903:09Fed's Fischer: No decision on raising ratesSquawk Alley
VIDEO5:1905:19Oil's surprise move higher
VIDEO3:3603:36Pisani's market opens in the red
U.S. stocks closed narrowly mixed on Friday, winding down several turbulent trading days with gains for the week, helped by a sharp rebound in crude oil and good economic data. (Tweet This)
"Sort of an anticlimactic end to a dramatic week. It tells me the internal state of the market is such that we are looking to see similar trading days because what (triggered it) hasn't changed," said Scott Clemons, chief investment strategist at Brown Brothers Harriman. He expects U.S. corporate earnings to be the primary factor for markets in the longer term.
The Nasdaq Composite ended up 2.6 percent for the week, recovering more than a 8.79 percent plunge, in its biggest intra-week reversal on record. The index is the only major average positive for the year so far.
The S&P 500 eked out a gain of about 1 point on the day, holding a 0.91 percent gain for the week. The index recovered from a 5.27 decline for its biggest intra-week reversal since the week of Sept. 19, 2008, when Lehman Brothers went bankrupt.
"I think everybody is probably a little exhausted from the week. I think everybody decides to leave early and we end the week pretty calmly," said Mark Heppenstall, managing director at Penn Mutual Asset Management. "The trading has become thin. It'll become easier to push us around."
The Dow Jones industrial average closed down about 12 points after briefly falling more than 100 points in afternoon trade, with Wal-Mart and Johnson & Johnson the greatest weights on the index by dollar point impact. The blue chip index was down 6.62 percent at its lows for the week and ended up 1.11 percent in its biggest reversal since the last week of October 1987.
Jeff Carbone, co-founder and managing partner of Cornerstone Financial Partners, was watching Friday's close carefully as traders head into the weekend.
"Selloff—it would show a lack of confidence," he said.
The S&P 500 entered a Death Cross in morning trade Friday, with the 50-day moving average falling below the declining 200-day moving average for the first time since August 2011.
Traders also digested a rebound in oil from six-and-a-half-year lows, amid solid U.S. data and comments from Federal Reserve policy makers on the timing of a rate hike.
The energy sector closed up about 2 percent, off highs of more than 3 percent, but still the greatest S&P gainer for the day and the week. Crude oil topped $45 a barrel, briefly up more than 20 percent from Monday's low.
Crude oil futures for October delivery settled up $2.66, or 6.25 percent, at $45.22 a barrel on the New York Mercantile Exchange.
In an interview with CNBC, Fed Vice Chair Stanley Fischer said it is "early to tell" if the case for a September rate hike is more or less compelling.
"I think he studiously said not much of anything. The problem is when you say nothing everybody thinks something, so I think that's what's unfolding right now," said Dan Greenhaus, chief global strategist at BTIG.
Short-end bond yields jumped, with the leaping to 0.73 percent. The 10-year Treasury yield traded near 2.18 percent. The U.S. dollar spiked, with the euro below $1.12 and the yen weaker near 121 yen against the greenback.
"I think a lot of it depends on the perception of the Fed," Jack Ablin, chief investment officer at BMO Private Bank, said of morning market moves. "I think the Fed has got the markets on a string right now."
He attributed the last two day's stellar gains to New York Fed President's William Dudley's comments Wednesday that a September rate hike had become less compelling.
"My view is it seems like Fed tightening is worth 6 to 7 percent in the market," Ablin said.
Read MoreAfter a week like this, market vol is ALWAYS high
The final read on August consumer confidence from the University of Michigan came in at 91.9, slightly lower than the initial print and July's figure.
The data takes particular prominence after Dudley singled out the index in comments Wednesday as an indicator of the volatile stock market's impact on the economy.
Central bank policymakers convene in Jackson Hole, Wyoming, for their annual meeting. However, Fed Chair Janet Yellen is among those not attending.
"After this week's volatility I see September as off the table," said Todd Hedtke, chief investment officer at Allianz Investment Management U.S.
"I don't think the Fed story is overly exciting despite the liftoff," he said. "I think it's certainly an important situation—the development in China and things playing out there."
Read MoreGlobal equity funds witness biggest-ever exodus
Concerns about slowing growth in the world's second-largest economy increased after China devalued its currency in mid-August, setting off sharp declines in global markets over the last two weeks.
The major averages closed Thursday more than 2 percent higher and out of correction territory.
With stellar gains on Wednesday and Thursday, the S&P had its best two days since March 2009 and the Dow had its best two days since December 2008, according to Howard Silverblatt of S&P Dow Jones Indices. Still, he noted the S&P 500 has lost $1.02 trillion in the last eight days.
Stocks plunged more than 3.5 percent on Monday, with the Dow falling 1,089 points for its biggest one-day point swing. The major averages attempted to bounce Tuesday but selling accelerated into the close, with the Dow and S&P off more than 1 percent.
In the morning, a Charles Schwab spokesman said the brokerage firm's The system was restored around the market open.
The Dow futures declined more than 150 points and trimmed losses to briefly trade less than 100 points lower, after showed an increase of 0.4 percent in personal income and an increase of 0.3 consumer spending.
Personal income and spending is the Federal Reserve's preferred measure of inflation. June consumption was revised slightly higher to 0.3 percent from 0.2 percent.
"Inflation still very contained, actually a miss for the Fed, so no concerns around the Fed," said Peter Cardillo, chief market economist at Rockwell Global Capital.
"I think we're looking at a mixed to lower session, with the averages setting above correction mode," Cardillo said.
Major U.S. Indexes
On Friday, the benchmark Shanghai Composite index ended 4.8 percent higher, after an exceptionally volatile weak for Chinese stocks. The index closed down 7.8 percent on the week. European trade was cautious on Friday with markets ending narrowly mixed.
Read MoreEarly movers: BIG, MYL, FCX, BGS, FB, ADSK & more
The Dow Jones Industrial Average closed down 11.76 points, or 0.07 percent, at 16,643.01, with Chevron leading advancers and Pfizer the greatest decliner. Apple posted gains of 7.1 percent for the week as the greatest gainer, while Pfizer lost 2.6 percent as the greatest laggard on the week.
The closed up 1.21 points, or 0.06 percent, at 1,988.87, with energy the greatest advancer and health care leading five sectors lower. Energy posted the greatest weekly gains, while utilities was the greatest decliner on the week.
Health care and consumer discretionary are the only two sectors in the black year-to-date.
The Nasdaq closed up 15.62 points, or 0.32 percent, at 4,828.32.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded above 27.
About two stocks advanced for every decliner on the New York Stock Exchange, with an exchange volume of about 1.0 billion and a composite volume of 3.9 billion in the close.
High-frequency trading accounted for 49 percent of August-to-date's daily trading volume of about 7.9 billion shares, according to TABB Group. During the peak levels of high-frequency trading in 2009, about 61 percent of 9.8 billion of average daily shares traded were executed by high-frequency traders.
Gold futures settled up $11.40 at $1,134.00 an ounce.
—CNBC's Robert Hum contributed to this report.
On tap this week:
Saturday
12:25 p.m.: Fed Vice Chairman Stanley Fischer at Jackson Hole; topic U.S. inflation
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This seasonal trend could mean trouble for oilFavorite picks from managers of top-ranked fundChina dumping Treasurys? Here's what you must know
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1c23aef942b2d92f8b035877e900bd75 | https://www.cnbc.com/2015/08/28/tiaa-cref-global-outlook.html | Robert Churchill | E+ | Getty Images
U.S. stocks decline on Friday after the end of one of the most volatile weeks in the global markets
The Dow Jones Industrial Average fell 73 points 16581. The lost 0.3% and the Nasdaq Composite dropped 0.1%.
The pan-European Stoxx Europe 600 index rose 0.3%, while the Shanghai Composite Index ended 4.8% higher.
Chris Semenuk, portfolio manager for the $4 billion TIAA-CREF International Equity Fund, told CNBC's "Power Lunch" Friday the U.S. remains a safe haven when geopolitical events become uncertain. "But the problem is, how much do you want to pay for that safety, because its still relatively more expensive compared to other regions."
VIDEO2:1702:17TIAA-CREF overweight EuropePower Lunch
Instead, Semenuk suggests putting money to work in Europe. "Europe used to be everyone's punching bag, but no longer. Now, it is the only part of the world which has the support of quantitative easing by its central bank, the tailwind of weaker Euro, trough EPS poised to recover and much better shareholder governance. For those reasons, it is our favorite place for investment opportunities."
Read MoreVanguard Group's Jack Bogle: How to handle the market's wild ride
As for China, Semenuk remains bearish on the region for the foreseeable future. "China has lost credibility with many global investors because there is too much government policy driving its markets. Beijing needs to decide if they are capitalists or not. Until they commit to a direction, we'll steer relatively clear."
TIAA-CREF is a leading asset manager and national financial services organization. TIAA-CREF has total $869 billion in assets under management
According to Morningstar, TIAA-CREF International Equity Fund is up ten percent year-to-date and 30.87 percent over the past three years.
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ace3beb0065ef3c70ac1913607d6c4e1 | https://www.cnbc.com/2015/08/30/celebrity-jeweler-plukka-heads-to-australia-for-ipo.html | HK celebrity jeweler Plukka heads Down Under to list | HK celebrity jeweler Plukka heads Down Under to list
VIDEO3:2203:22Why this jewelry e-retailer is venturing offlineSquawk Box Asia
It's not often stock investors and Lady Gaga get mentioned in the same sentence but Hong Kong-based Plukka plans to bring the two together, with the jeweler of celebrities planning an October listing.
Plukka chief executive Joanne Ooi will hold meetings with potential investors in Sydney and Melbourne this week ahead of the company's debut on the Australian Securities Exchange (ASX), which will put a third of Plukka in public hands in order to raise 10 million Australian dollars. The float is fully underwritten by advisers KTM Capital.
Ooi told CNBC that listing Plukka would allow the company to "raise funds to increase network both online and offline, and it confers the good will and halo that comes with being a listed establishment brand."
Getty Images
Launched in 2011 by Ooi, formerly creative director at high-end Hong Kong clothier Shanghai Tang, and Hong Kong restaurateur Jai Waney, Plukka offers stock from designers, as well as made-to-order pieces.
Plukka claims that by offering a made-to-order service, it is able to carry more daring, creative designs than traditional jewelers - the kind that appeal to celebrity customers including Lady Gaga, Pharrell Williams and Miranda Kerr.
And as more luxury brands shifted to online expansion and look East rather than West for new customers, Plukka has done the opposite, remaining purely digital for its first three years and aiming for growth in the U.S., not China.
"[Expanding into the United States] is the most economically efficient mode of branding and marketing a global luxury brand," said Ooi.
Read MoreIs China falling out of love with luxury?
"Branding among fashion opinion leaders in the United States confers a level of credibility and authority, which is difficult to achieve by just marketing in the Asian market," she added.
Plukka, which carries independent designers including Bernard Delettrez and Sidney Chung, with pieces that range in price from $300 to a whopping $150,000, did succumb to a more traditional sales route last year, opening its first brick-and-mortar store in Landmark Atrium, an upmarket shopping mall in Hong Kong.
"There is no substitute for a woman to be able to see and touch fine jewelry in person," said Ooi."[We found that] offline transaction values are much higher than online purchases," she added.
CORRECTION: An earlier version of this story reported incorrectly that Plukka provided made-to-order jewelry using a system that allowed prices to be dictated by the number of buyers commissioning a piece.
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aeba77b504e735091a8c5d6090fd3dc1 | https://www.cnbc.com/2015/08/31/cabbage-truck-crash-delays-commuters-in-rochester.html | Cabbage truck crash delays commuters in Rochester | Cabbage truck crash delays commuters in Rochester
Early morning commuters in Rochester, New York saw heavy delays on Monday after a truck carrying heads of cabbage overturned on Interstate 490.
The tractor-trailer was traveling eastbound at around 6:30 a.m, according to NBC affiliate News10NBC. Traffic was delayed on both sides of the highway because of the spillage.
According to the New York State Police, the driver of the vehicle was transported to Strong Memorial Hospital with minor injuries.
Read the full report from News10NBC.
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35640372a6a221315d22a61b3e317560 | https://www.cnbc.com/2015/08/31/malaysias-anti-government-protests-whats-next.html | Malaysia's anti-government protests: What's next? | Malaysia's anti-government protests: What's next?
Protesters hold up a placard during a Bersih rally as protestors call for the resignation of Prime Minister Najib Razak on August 30, 2015 in Kuala Lumpur, Malaysia.Getty Images News
Malaysia's mammoth civil disobedience campaign has heightened pressure on scandal-ridden Prime Minister Najib Razak but is an imminent departure on the cards? Unlikely, analysts say.
The 61-year-old leader, who is no stranger to controversy, has most recently been accused of pocketing almost $700 million from troubled government fund 1Malaysia Development Berhad (1MDB). Najib says the allegations are part of a malicious campaign to force him from office, while his cabinet ministers claim the funds were campaign donations from unnamed sources in the Middle East.
"[The] protests will pile on public pressure on Najib to resign. But unfortunately he's in quite a strong position," said James Chin, director of the Asia Institute at the University of Tasmania.
"When you look at the number of Malay participants that were a lot less this time and it's the Malay community that will decide the outcome of Najib's prime ministership."
Malaysia, a nation of 30 million, is predominantly Malay Muslim. However, the majority of participants in the weekend's rally - estimated by police to number roughly 25,000 - came from the country's minority ethnic Chinese and Indian communities.
Read More Huge Malaysia rally for Najib's resignation enters 2nd day
More than the protests, Chin said Najib's handling of the economy was what might see him pushed out the door.
"The ringgit is the key to the prime ministership," said Chin. "If the economy does well and the ringgit recovers, then Najib will be in a much stronger position. If the ringgit keeps falling to 4.6, 4.7– the Prime Minister doesn't have a choice but to resign," he said.
The ringgit has lost one third of its value against the U.S. dollar over the past 12 months and is Asia's worst performing currency this year, driven by global headwinds - such as lower energy prices and a broader selloff in emerging market assets – as well as domestic political turmoil.
A weaker ringgit hurts consumers' pockets as it pushes up the price of imported goods. The currency traded at 4.19 against the greenback on Monday.
VIDEO5:0305:03Will Malaysia's 'Bersih' movement spark change?Squawk Box Asia
According to Terence Gomez, a professor in the department of administrative studies and politics at the University of Malaya, Najib's resignation would not, in any case, solve Malaysia's broader corruption woes.
Najib has previously been linked to corruption around a French submarine contract, as well as the murder of a Mongolian model connected to the sub deal, but has always strenuously denied any wrongdoing.
"The [corruption] situation is getting worse and worse even though we're into our 4th Bersih campaign," he said. Berish, which means "clean" in Malay, is the name of the pro-democracy organization behind the weekend's rallies.
"Is getting rid of Najib the solution? No. We need major institutional reforms in the country."
Krystal Tan, Asia economist at Capital Economics shared a similar view.
"If Mr Najib were to be ousted, another leader would likely be chosen from the UMNO [United Malays National Organisation] ranks, and any changes in policy or governance would probably be minor," she said. Najib's UMNO party is the biggest in the ruling Barisan Nasional coalition.
"If Malaysia is to achieve its potential, its institutions need a shaking up and cleaning out."
While political reform remains distant, Bersih rally protesters said they were happy to be part of the process.
"We Malaysians want to try to change something. Maybe there will be nothing happening after this (but) this is progress [and] I want to be part of the process," 29-year-old Pauline Chow told CNBC.
Khor Chun Wai, 34, meanwhile, highlighted the need for racial unity in the movement.
"Malaysia needs to change, but we can't do this with just one race, we need the support of all races, we need them all to stand forward, and change the present situation," he said. "The fall of the ringgit, and our foreign reserves, and the withdrawal of foreign investors, we can't stand aside any longer."
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99b1cbe4eecf1325acc834ec070ee97e | https://www.cnbc.com/2015/08/31/uk-tax-breaks-spur-3b-north-sea-gas-project.html | UK tax breaks spur £3B North Sea gas project | UK tax breaks spur £3B North Sea gas project
An oil platform is seen in the North Sea, around 100 miles east of Aberdeen, Scotland.Andy Buchanan | Reuters
Danish energy group Maersk is to lead a £3 billion ($4.62 billion) project to develop the largest gasfield discovered in the U.K. North Sea for a decade, the first big investment to benefit from tax breaks announced in the Budget.
The Culzean field in the central region of the North Sea is expected to produce enough gas to meet 5 percent of U.K. demand when it reaches peak output in 2020-21, the company said on Monday. It is the largest gasfield to get the go-ahead for development since East Brae in 1990.
Oil volatility will continue: Fmr. Shell president
Maersk, JX Nippon and BP discovered the gas condensate field, which holds an estimated 250 million to 300 million barrels of oil equivalent in resources, in 2008. Production is due to start in 2019 and continue for at least 13 years, peaking at 60,000-90,000 boe per day.
"Culzean is an important development for the UK and also for Maersk Oil and our co-venturers," said Jakob Thomasen, chief executive of Maersk Oil.
The news is a rare boost for the U.K. North Sea, a high-cost region that is in long-term production decline and has been hit hard by the collapse in oil prices since last summer from more than $115 a barrel to just $50.
Eni ‘supergiant’ gas field discovery a gamechanger: CEO
In an effort to breathe new life into the region, George Osborne, chancellor, announced a sharp cut in taxes worth £1.3 billion in March, a rescue package that included a cut in the headline supplementary rate of profits and a simplified investment allowance enabling companies to claim back the costs of new spending.
Mr Osborne said the announcement was "a clear signal that the North Sea is open for business".
Culzean is expected to support an estimated 6,000 jobs and create more than 400 jobs directly, according to Maersk.
Are hopes for an oil bounce short lived?
The investment allowance, which will apply across the North Sea basin, has been set at 62.5 percent of such expenditure from April 1 and can be set off against profits subject to the supplementary tax rate. It supports the development of "high pressure, high temperature" projects such as Culzean, which tend to involve heavier capital expenditure.
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Last week, by contrast, Maersk said it would approach the U.K. Oil and Gas Authority to seek approval to cease production at its Janice installation, a decision that puts 200 jobs at risk. Output would cease in the second or third quarter of next year.
Output on the U.K. continental shelf, despite record investment in recent years, has been sliding since 2000. Oil & Gas UK.. says that it dropped another 1 percent last year to 1.42 million barrels of oil equivalent a day, versus a peak of 4.5 million boe/d 15 years ago. Exploration has all but ceased.
A fifth of production, or a third of fields, is now unprofitable, says the industry group. Cash losses, or the deficit after subtracting costs from revenues, topped £5 billion last year, the biggest shortfall since the 1970s.
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f624057900aac4d35a42039023a2f1fe | https://www.cnbc.com/2015/09/01/correction-wont-derail-bull-market-piper-jaffray.html | Correction won't derail bull market: Piper Jaffray | Correction won't derail bull market: Piper Jaffray
VIDEO3:4003:40Bull market still intact: TechnicianSquawk Box
VIDEO3:1203:12China handing US markets correction: ProSquawk Box
VIDEO2:1102:11September swoon looms?Squawk Box
The selloff at Tuesday's open on Wall Street put the Dow industrials and Nasdaq back in correction territory.
Despite the drop, and the dramatic plunge early last week, Piper Jaffray senior strategist Craig Johnson told CNBC's "Squawk Box" the selling won't derail a long-term trend higher.
"There's no question that a lot of technical damage [has been] done," he said before Tuesday's opening bell, but added the secular bull market in stocks remains intact. The term secular bull market refers to a market that moves higher over the long haul, even with periodic corrections and or bear market conditions.
Johnson emphasized the primary trend still looks higher, and he advised investors to buy the dips. "I expect us to find the lows here somewhere soon. I'm not saying today is going to be the day, but I think in the next few weeks here."
Read MoreDon't bail on your investment strategy yet: Traders
Alison Deans at AA Deans Advisory said in a separate "Squawk Box" interview Tuesday however, that it's too early to buy the dips. She feels there's more downside to go before the market finds its bottom. "I don't think it's dipped quite enough yet."
New data on China's manufacturing sector showed a further loss of momentum, which sparked another selloff in global markets. The Dow Jones industrial average, and Nasdaq composite each lost more than 6 percent in August, heading into September, which has a long-running history as the worst-performing month of the year for stocks.
"It almost feels like the market has been looking for a correction and China is handing it to us," Deans said.
But even with Tuesday's early decline, the S&P 500 did not return to last week's correction levels, defined by declines of at least 10 percent from record highs.
Deans said she's not worried about the U.S. economy suffering directly from China's problems.
Growth in America should continue to improve unless consumers get scared and pull back spending, she argued—but warned about an indirect impact on corporate profits.
James Liu, global market strategist at J.P. Morgan Funds, told CNBC on Tuesday that the slowing Chinese economy has been widely telegraphed and priced in the market. Only a really hard landing for the Chinese economy would present a compelling reason to shift his expectations for continued U.S. growth.
"A hard landing is not a 5 percent [growth] number. It's zero percent or negative growth rate," he said—but added the U.S. should be rather distinct from these global problems. "That should cause some stability in the short run, ... this morning not withstanding. "
Liu said investors should buy the dips—not because stocks might get a little cheaper but because the prospects for the U.S. stock market remain solid. In fact, he added, valuations are more attractive now than at the start of the year.
"I don't think we're stretched at all at this level about the way people feel about this market," he said.
Disclaimer
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27f0052dcc73090bf5a4bbb16985d913 | https://www.cnbc.com/2015/09/01/euro-zone-factory-growth-eases-in-august-to-523-from-524-in-july.html | Euro zone factory growth eases in Aug despite modest price rises: PMI | Euro zone factory growth eases in Aug despite modest price rises: PMI
Euro zone manufacturing growth eased last month, despite factories barely raising prices, adding to the European Central Bank's woes as it battles to spur expansion and inflation, a survey showed.
Tuesday's disappointing readings come almost half a year after the ECB began pumping 60 billion euros a month of fresh cash into the economy and a day after official data showed inflation in the 19-country bloc at just 0.2 percent.
An employee works on a Mercedes-Benz S-Class Coupe, in Stuttgart, Germany.Martin Leissl | Bloomberg | Getty Images
With inflation so far below the ECB's 2 percent target ceiling there is a growing chance the ECB will have to extend its stimulus program beyond the planned completion in September 2016.
Markit's final manufacturing Purchasing Managers' Index was 52.3 last month, below an earlier flash reading that suggested it had held steady at July's 52.4.
It has, however, been above the 50 mark that separates growth from contraction for over two years.
An index measuring output that feeds into a composite PMI, due on Thursday and seen as a good guide to growth, rose to 53.9 from 53.6, above the preliminary 53.8 reading.
China manufacturing sector is losing steam, fast
"By nation, the Netherlands, Italy and Ireland remained the most impressive performers," said Rob Dobson, senior economist at Markit. "Although there were signs of manufacturing growth cooling in these countries, this was largely offset by a solid acceleration in Germany, suggesting that the region's industrial powerhouse is taking on more of the growth strain."
An earlier PMI from Germany, Europe's largest economy, jumped to 53.3 from July's 51.8.
The sub-index covering output prices in the euro zone nudged up to 50.5 from 50.4, below the flash 50.7.
for the latest on the markets.
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cf9829b3d4cdfeb23052dfbd82dd4721 | https://www.cnbc.com/2015/09/01/it-pays-to-educate-yourself-about-529-savings-plans.html | It pays to educate yourself about 529 savings plans | It pays to educate yourself about 529 savings plans
Financial advisor Howard Pressman has two clients, a married couple, whose son is in his last year of college. The 529 college savings plan they set up when their son was a child has almost entirely funded his higher education.
They planned well, Pressman explained.
Pressman said if the money had been kept in an age-based portfolio within that 529 plan, they might have fallen far short of that goal. That's because the portfolio became too conservative even when the son was still years away from using the money.
Jamie Grill | Blend Images | Getty Images
"Given all that was happening with the economy, it made sense to be more aggressive," said Pressman, a certified financial planner with Egan, Berger & Weiner.
Instead of leaving the money in the age-based option once the child entered his teenage years, Pressman created a portfolio that kept most of the money invested in stocks.
Read MoreKeep an eye on your 529 plan
"It worked out well," he said. "We came really, really close to completely funding his college expenses."
529 college savings plans, named for the section of the federal tax code that created them, give parents a tax-advantaged way to sock away money for their children's college expenses.
VIDEO0:3600:36Student aid raising the cost of collegeStudent Loans
Earnings and interest on the money grows tax-free, although contributions are not tax-deductible on federal tax returns. (Some plans allow deductions at the state level.) Distributions are also tax-exempt as long as the beneficiary uses the money for college-related expenses, such as tuition, books and room and board.
Data from the College Savings Plan Network show there are roughly 12 million 529 accounts, with an aggregate value of $250 billion. The average account size is about $21,000.
Given the high cost of college, it's no wonder parents are taking advantage of 529 plans.
According to College Board, the average yearly cost for tuition and fees at a public college for in-state residents is $9,139. For out-of-state residents, that average cost jumps to $22,958. Private universities average $31,231 annually. And those amounts don't even include things such as housing, food and textbooks.
Age-based portfolios in 529 plans basically work like this: You pick a portfolio based on your child's age or the year he or she will need the money—say, 2030—and the portfolio automatically moves gradually to less risky investments the closer it gets to that year.
Read MoreHow to refinance that student loan
But, say some financial advisors, those portfolios are too cookie-cutter and become too conservative at preset times regardless of what's happening with the economy or the stock market. Some plans adjust holdings fairly regularly, while others do it at specific age-based intervals.
"There are kids in elementary school whose 529 [age-based] accounts have bonds in them," said Dick Power, a CFP and the principal of Power Plans. "That's crazy."
Financial advisors often can access a broader variety of options through a 529 plan than parents can. Pressman, for instance, could choose from a couple dozen mutual funds through the state of Virginia's plan. That enabled him to create a portfolio for his clients that kept the money mostly in stocks to capitalize on market gains instead of languishing in bonds and/or cash.
"It's a one-dimensional decision process with age-based portfolios," Pressman said. "I don't think anything as complicated as this should be boiled down to one particular factor like [a child's] age."
For anyone who wants to control the investment mix in a 529 plan, there are ways to do it even if you do not work with a financial advisor.
For instance, you can open more than one 529 plan for a child. That alone can give you exposure to more than one investment manager's expertise and performance. Each state contracts with investment companies to manage the offerings within its 529 plan.
Joe Hurley, founder of website Savingforcollege.com, said that if you do choose to open more than one 529 account for a single beneficiary, two should be the limit.
At one point, as part of his research, Hurley had 33 plans open for his two children. "It's too much paperwork," he said. "There's really no benefit to having more than two, if that."
Read MoreWhen to cut off your adult kids
Also, most 529 plans offer static portfolios, meaning that the allocation in them does not change. If it's an aggressive portfolio, it will be in all stocks or mostly stocks. If it's a conservative one, it will be all or mostly in bonds and cash. A moderate portfolio will include a mix of the above.
But be aware that changes to a 529 account can only be made twice a year. That means you cannot suddenly react to market conditions on a frequent basis, which any financial advisor would say is unwise, anyway.
Power at Power Plans said that depending on the client's financial situation, he might recommend a static aggressive portfolio that probably has no bonds and just a little bit of cash.
"I might say, though, that if the [stock] market is looking soft, let's switch to an age-based portfolio," Power said. "It really depends on what's happening with the market and what the client's needs are."
If I have a client who's not terribly well off, I'll probably have them stick with an age-based plan because they can't afford to take too many chances.Dick Powerprincipal of Power Plans
He explained that if a client's income and assets are relatively high, he's inclined to be more aggressive because the client is better able pick up some of the child's college costs if the market is down.
"If I have a client who's not terribly well off, I'll probably have them stick with an age-based plan because they can't afford to take too many chances," Power said. "They don't have the financial flexibility to make up the difference."
However, he added, "unless you have enough time to pay attention to it, just go with the age-based portfolio. For the ordinary person, they are still a good choice."
—By Sarah O'Brien, special to CNBC.com
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c7c6f51587fb8cc7265785a8a00541e3 | https://www.cnbc.com/2015/09/01/smaller-merchants-prepare-for-fraud-proof-cards.html | Smaller merchants prepare for fraud-proof cards | Smaller merchants prepare for fraud-proof cards
Credit cards with EMV chips.PhotonStock | Getty Images
Businesses big and small are preparing for a major shift in their credit and debit card systems.
Beginning Thursday, credit card issuers will shift responsibility for fraudulent transactions to merchants. The new cards are called EMV (Europay, Mastercard and Visa) and include a microchip intended to reduce fraud. Swiping the magnetic strips of traditional credit and debit cards eventually will be phased out.
"Small-business merchants have had a lot of success in upgrading machines that are rather 'plug and play' in the $100 to $200 range," said Stephanie Ericksen, vice president of risk products at Visa. "But it will take a few years before we get to critical mass" on the new technology, said Ericksen, who made the comments on a conference call Wednesday.
The shift is especially important for smaller merchants who usually have limited resources for technology upgrades, including ways to protect against fraud. And the cost of data breaches has increased significantly for small companies.
In 2014, cyberfraud cost a small business an average of around $20,000 in damages, up from $8,600 in 2013, according to data from the National Small Business Administration.
VIDEO3:5303:53Credit card chip gains traction
Deborah Ball, who owns the Candy Lady candy shop in Albuquerque, New Mexico, upgraded her card system in the spring.
She said she was surprised at how easy and cheap the upgrade was — $39 for the new payment system from Heartland Payments.
"Card fraud is one of my biggest fears," said Ball, whose shop made the blue rock candy that served as a prop for meth on the hit AMC show "Breaking Bad." "You want to have safeguards in place."
Businesses that sell big-ticket items including apparel, handbags or electronics should be sure to make the swap first as they're more likely to get hit with counterfeit fraud, said Visa's Ericksen in a prior interview.
"Retailers selling luxury goods, or prepaid cards that can be easily converted to cash goods are more of a target than local small businesses like coffee shops or dry cleaners," Ericksen said. "It's certainly good for any retailer to upgrade to chip systems — it's a minimal investment in many cases.
Read MoreMany US retailers not ready for fraud-proof cards
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436ee9b2e8a04ff88502e582194c4dba | https://www.cnbc.com/2015/09/01/the-bull-market-is-over-louise-yamada.html | VIDEO4:1004:10This is flashing a major sell signal: YamadaFutures Now
The market turmoil continued Tuesday as weak data out of China pushed all major U.S. indices down more than 2 percent. The S&P 500, and have now fallen a respective 6.5, 9.5 and 1 percent year to date, and according to one renown technician, the move may have signaled the end of one of the longest-running bull markets in history.
Looking at a chart of the S&P 500, Louise Yamada noted that momentum has been declining for four months, which by her work, is a "classic" sell signal.
"This is suggesting to me that we are looking at a bear market," said Yamada said Tuesday on CNBC's "Futures Now." Yamada noted that the last two times the market saw a similar shift in momentum were in January 2008 and June 2000.
At this point, the S&P 500 is already 10 percent from its May all-time high, but for Yamada, it's about to get a lot worse. "We could certainly see the S&P test its 2009 uptrend at 1,800," said the founder of Louise Yamada Technical Research Advisors.
Read More Here's why it can get much worse: Technician
"If the 1,800 level were to be breached, I think we could go all the way back toward 1,600 which is the breakout point through which the market moved in 2013," she continued. "In a normal technical concept, it's nothing more than a pullback to the breakout, but it would be a 24 percent decline [from the peak], which would hurt if people didn't protect themselves."
Yamada doesn't see the sharp selling coming in one swift move. Instead, she believes the market could see bounces and the overall decline will happen over the course of a number of weeks to months.
In the meantime, Yamada has a simple message for investors: Tread carefully.
"Lighten positions in stocks that are beginning to become fragile."
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2853d1d71c3667bf9bab60f3e422fcaa | https://www.cnbc.com/2015/09/01/the-bull-market-is-over-louise-yamada.html?trknav=homestack:topnews:5 | VIDEO4:1004:10This is flashing a major sell signal: YamadaFutures Now
The market turmoil continued Tuesday as weak data out of China pushed all major U.S. indices down more than 2 percent. The S&P 500, and have now fallen a respective 6.5, 9.5 and 1 percent year to date, and according to one renown technician, the move may have signaled the end of one of the longest-running bull markets in history.
Looking at a chart of the S&P 500, Louise Yamada noted that momentum has been declining for four months, which by her work, is a "classic" sell signal.
"This is suggesting to me that we are looking at a bear market," said Yamada said Tuesday on CNBC's "Futures Now." Yamada noted that the last two times the market saw a similar shift in momentum were in January 2008 and June 2000.
At this point, the S&P 500 is already 10 percent from its May all-time high, but for Yamada, it's about to get a lot worse. "We could certainly see the S&P test its 2009 uptrend at 1,800," said the founder of Louise Yamada Technical Research Advisors.
Read More Here's why it can get much worse: Technician
"If the 1,800 level were to be breached, I think we could go all the way back toward 1,600 which is the breakout point through which the market moved in 2013," she continued. "In a normal technical concept, it's nothing more than a pullback to the breakout, but it would be a 24 percent decline [from the peak], which would hurt if people didn't protect themselves."
Yamada doesn't see the sharp selling coming in one swift move. Instead, she believes the market could see bounces and the overall decline will happen over the course of a number of weeks to months.
In the meantime, Yamada has a simple message for investors: Tread carefully.
"Lighten positions in stocks that are beginning to become fragile."
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81a14575e8d1fbf341e00fccd080d9a7 | https://www.cnbc.com/2015/09/02/dont-let-china-scare-you-away-from-global-stocks.html | Don't let China scare you away from global stocks | Don't let China scare you away from global stocks
VIDEO1:4701:47Markets seek rebound from Tuesday sell-offstocks
VIDEO3:1503:15Will we see further stock market corrections? Worldwide Exchange
VIDEO4:3504:35What markets are really worried about ChinaStreet Signs Asia
Worries about China's slowing economic growth continue to make markets around the world jittery. But most financial advisors are telling clients to keep their allocations for international stocks and some are even going on a shopping spree.
"We feel that the valuations remain attractive both in developed and especially in emerging market equities, and believe that this is a good opportunity for long-term investors to take advantage of short-term volatility," said Howard Pressman of Egan, Berger & Weiner in Vienna, Virginia.
With decades to go before retirement, millennials are particularly well-positioned to take advantage of the turmoil, said Tracey Eve Johnson, a certified financial planner and principal at Blue Flag Planning in Tarrytown, New York. "We find that these clients are usually able to maintain a long-term focus and stay the course during the inevitable periods of market turmoil," Johnson said.
What should you do with your retirement portfolio now?
Many financial advisors prefer foreign stocks because they have different risk and return characteristics than U.S. equities. That can diversify a portfolio and prevent "home bias," the tendency investors have to invest heavily in the stocks of their own country.
So how much exposure should investors have to global markets? The U.S. had about 36 percent of the world's market capitalization as of March 2015, according to Bespoke Investment Group. (China had about 9.4 percent.) That means a portfolio focused solely on U.S. stocks would exclude more than 60 percent of the equity opportunities available worldwide.
"Because my clients are in the U.S. and spending dollars, and also a bit for psychological comfort, I skew the allocation somewhat more toward U.S. equities than the strict market valuations would indicate," said Charles Levin, a certified financial planner in Wayland, Massachusetts. He recommends investors put 60 percent of the equity portion of their portfolios in U.S. stocks and 40 percent in international stocks.
U.S. mutual fund investors held, on average, only 27 percent of their total equity allocation in non-U.S. funds as of December 2013, according to an analysis by The Vanguard Group.
Vanguard found that a 20 percent allocation to international stocks is a good starting point for most investors. However, the additional expense of investing in international stocks can be a drag on returns. Though global markets have become more efficient, costs—such as expense ratios for international stock funds and bid-ask spreads—are usually higher for U.S.investors.
"[I]nternational allocations exceeding 40 percent have not historically added significant additional diversification benefits, particularly accounting for costs. For many investors, an allocation between 20 percent and 40 percent should be considered reasonable," Vanguard researchers concluded.
Getty Images
To be sure, in a global economy, most large U.S. companies have some exposure to international markets.
Last year, the percentage of total revenue from sales in foreign countries grew among S&P 500 companies after five years of stagnation, according to research from S&P Dow Jones Indices. The overall rate for 2014 was 47.8 percent, up from 46.2 percent in 2013.
Some target-date funds miss in the market turmoil
S&P 500 sales from Asia grew last year, but not rapidly, with 7.8 percent of S&P 500 sales coming from Asia, up from 7.7 percent in 2013 and 7.5 percent in 2012. Many large U.S. companies do not break out sales for China, however, making it difficult to track exactly how a slowing of Chinese economic growth will affect their earnings.
The key for long-term investors is to have a good mix of international stocks or stock funds that is not concentrated on one region or country, advisors say.
"The turmoil in China only becomes an issue if you are not diversified and overweighted in China," said Scot Hanson, a certified financial planner at EFS Advisors in Shoreview, Minnesota. "If the situation in China does matter [to you], you have the wrong plan, strategy and advisor."
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8c2d2142ebb7868131d5b14b6c50ceaf | https://www.cnbc.com/2015/09/02/more-qe-to-come-from-draghi.html | More QE to come from Draghi? | More QE to come from Draghi?
If European Central Bank (ECB) Governing Council members were hoping for a quiet end to the summer after the Greek drama gripped global markets in July, they were surely disappointed. Haven't we learned in the past five years that August is full of surprises often in the form of nasty volatility? This year was no exception.
This time the culprit was not Greece but China, as it unexpectedly devalued its currency and pulled several about-faces on whether it was letting the yuan float freely and whether it was propping up blue chip stocks.
One prominent Governing Council member, Vice President Vitor Constancio, played down the volatility in China's stock market at a conference in Germany last week. He added that "there are few signs of a slowdown in the Chinese economy and the country's stock market is not so connected to the activity on the ground."
Vitor Constancio, Vice President of the Supervisory Board of the European Central Bank in February, 2014.Daniel Roland | AFP | Getty Images
If you believe the good-natured Portuguese economist, you'd be inclined to think the ECB would hold fire when it meets on Thursday. At most, ECB President Mario Draghi might use verbal intervention, expressing vigilance over the impact of external factors (read China) on growth and inflation dynamics in the euro area.
The inflation outlook has certainly not improved towards the ECB targets, owing to the appreciation of the euro against the U.S. dollar and the continued downside pressure from falling oil prices. Although energy commodities staged a remarkable recovery last week, there are doubts as to the longevity of this rebound—crude oil prices fell again on Wednesday, after closing around 8 percent lower on Tuesday.
Despite Constancio's comments, there are economists out there who expect more explicit easing from the ECB than just a dovish message.
Those expectations were fuelled by ECB Executive Board Member Peter Praet last week when he uttered the words: "The ECB is ready to expand or extend its QE (quantitative easing) program if needed, as a slump on commodity prices and risks to global growth threaten it's inflation goal of 2 percent."
He added that the bond-purchasing was "flexible both in terms of length and composition."
According to ABN Amro, these comments "significantly increase the chances that the ECB will step up or extend QE as soon as the September meeting…"
"It (the ECB) could communicate that QE will be completely open-ended, dropping the reference to September 2016, or increase the size of monthly purchases."
Euro strength puts pressure on Draghi as ECB meets
Goldman Sachs' economist though believes that only "an abrupt loss of momentum" would justify an immediate reaction in the shape of an increase in monthly purchases. When it comes to an explicit extension of the program beyond September 2016, Goldman Sachs wrote that "only a downgrade of medium-term inflation outlook" would justify that.
In fact, the ECB will update it's staff projections on Thursday. It is widely expected that it will nudge down its inflation forecast, due to lower oil prices, which it had expected to bounce back in the second half of 2015.
This week's flash August inflation print came in at 0.2 percent, steady from July and dragged down once again by—guess what— energy.
Europe rallies after Draghi raises QE hopes
Crucially though, Goldman Sachs believes the 2017 inflation outlook will be unchanged at 1.8 percent. No immediate extension of QE needed then, you would assume.
Deutsche Bank economists agreed: "The ECB is likely to refrain from announcing new measures, but remind the market that the duration of QE is conditional on the inflation outlook."
After a turbulent summer, it sounds like autumn won't be much quieter. The doves are on high alert.
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bb9c2e1e821bacaa3d3ebec71aacba95 | https://www.cnbc.com/2015/09/02/what-apples-ad-blocker-tech-means-for-digital-media.html | What Apple's ad-blocker tech means for digital media | What Apple's ad-blocker tech means for digital media
VIDEO1:5101:51What ad-blocking software means for digital mediaInternet
A new ad-blocking option available on the next iteration of Apple's iOS 9 mobile operating system may make for happier mobile Web users, but it could sully the tech giant's relationship with publishers.
"Content Blocking gives your extensions a fast and efficient way to block cookies, images, resources, pop-ups, and other content," Apple said in a blog post for developers who produce content for Apple's Safari browser.
But while ad blocking is a plus for browser users, it cuts into publishers' revenue by billions of dollars. The new ad-blocking feature comes with the next update to iOS, which could arrive within the next few weeks, according to The Wall Street Journal.
Apple Store employees fill orders for iPhones in Palo Alto, California.Getty Images
According to a study released earlier this year by research firm PageFair and Adobe, the maker of the flash player that animates many ads, the use of ad blocking extensions cost global publishers $11 billion in 2014.
The same study expects the cost to hit $21.8 billion in 2015 and $41.4 billion in 2016.
Read MoreCould ad blockers be the next Tivo?
Separately, Google has said it wouldn't automatically play ads developed using Adobe Flash software in its Chrome browser. Mozilla had also said its Firefox browser would block flash ads, tech news site CNET has reported.
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a675f779fc38e876c2cf2789886889b1 | https://www.cnbc.com/2015/09/03/4-mistakes-that-could-ruin-your-retirement.html | 4 mistakes that could ruin your retirement | 4 mistakes that could ruin your retirement
VIDEO1:2001:203 mistakes that could ruin your retirementRetirement
Considering the stock market's wild swings over the last two weeks, some investors may be a bit queasy. Those who are newly retired or near retirement may be tempted to cash out of stocks or adjust their portfolio so that it is mostly invested in bonds. That could be a big mistake.
That's one of a few mistakes that can derail your retirement plans.
With extraordinary low interest rates and modest inflation, investing in long-term bonds to capture as much yield as possible may seem like a smart move. But the years leading up to retirement tend to be your highest-earning years and an allocation to equities can boost your retirement portfolio.
Also, as interest rates rise, bond yields fall. "With interest rates poised to rise over the next few years, a large allocation to bonds, especially now, may result in significant capital loss," said Hardeep Walia, CEO of Motif Investing.
He suggests adding exposure to equities that do well in a rising rate environment.
There is also no guarantee that inflation will stay benign.
"The extra reward you get in the form of higher yields from stretching on maturity will come back to haunt you should inflation trend upwards faster than expected," said financial advisor Manisha Thakor, director of wealth strategies for women at The BAM Alliance. "For many people, the only way to keep assets growing enough to not only beat inflation but hopefully grow in real terms is to take on some equity risk."
Another common mistake is assuming the government will pay for one of your biggest retirement expenses: health care.
Qualifying for Medicare does not mean your health-care expenses will be covered. Medicare helps to pay for hospitalizations, doctor visits and prescription drugs, but people on Medicare generally still pay monthly premiums for physician services and prescription drug coverage.
Also, Medicare does not cover long-term care services, routine dental visits or vision care. According to a Kaiser Family Foundation study published in 2014, the average Medicare beneficiary paid $4,374 in 2010, including premiums and out-of-pocket costs. To check whether a medical expense is covered, go to medicare.gov. Make sure you've saved up to cover those costs.
If you don't have enough savings, maybe you've decided it's not a big worry because you are planning to move to a state with low or no income tax, so your overall tax hit will be lower. Not so fast. That's another big mistake.
Don't make a move just because of taxes. Many low-income or no-income tax states have high property and sales taxes that can eat into your savings.
"States have to finance themselves. So some states don't do it through income taxes, which makes them attractive, but they have lots of other 'nuisance' taxes," said tax advisor Ed Slott, author of "Fund Your Future: A Tax Smart Savings Plan in Your 20s and 30s." "Somewhere you pay for a lifestyle. It may not show on the income tax but will show up when you go to the movies, or buy something else. When you add up the taxes you pay throughout the day, it may be as much as you would have paid in state income tax. Nothing is totally free."
If you move far from family and friends, you may also have to dip into your nest egg for travel costs.
Not saving is the No. 1 retirement mistake. "Not putting away enough money is the biggest mistake people make," Slott said. "Wherever you are, it's not too late to save. You won't have anything if you don't put something away."
How much do you need? It will vary depending on your lifestyle.
But consider this. Suppose you worked from age 25 to age 65. That's 40 long years. Now assume you live to 95. That's 30 years in retirement. Think about that. For every year you worked you needed to fund one year of current living expenses and set aside enough funds (either through your contribution to Social Security or outright retirement savings) to cover another three-fourths of a year of expenses in retirement.
"That math is absolutely mind-boggling. As a result, many people are heading into retirement with a little less (or a lot less) than they'd like, to have reasonably high odds of not outliving their money," said Thakor.
So save even more money than you think you may need. The amount that you save may be even more important to making sure you don't outlive your money than where you invest those dollars.
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ffa8bac7073010e2f56602ee42d3af62 | https://www.cnbc.com/2015/09/03/ecb-rate-decision-due-amid-market-turmoil.html | How it happened: Draghi stimulus remarks lift markets | How it happened: Draghi stimulus remarks lift markets
Did you miss the all-important news conference with European Central Bank (ECB) President Mario Draghi? Never fear—CNBC placed close attention and caught all the highlights.
Draghi, who also happens to celebrate his 68th birthday Thursday, cheered markets with dovish comments and news that the ceiling on sovereign bond ownership by the ECB will be hiked to 33 percent from 25 percent.
Read on to learn how the day's ECB action panned out.
Follow us on Twitter: @CNBCWorld. (App users please click here).
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538c10062cb5408d6db7f2143240163d | https://www.cnbc.com/2015/09/03/how-are-you-positioned-ahead-of-the-holiday-weekend.html | How are you positioned ahead of the holiday weekend? | How are you positioned ahead of the holiday weekend?
Major averages have been on a roller-coaster ride in recent weeks amid headlines from China, sharp oil fluctuations and signs from the Federal Reserve.
Global markets are expected to see some relief from the turbulence as mainland Chinese markets remain shut on Thursday and Friday due to public holidays.
Stocks close narrowly mixed as Street awaits key jobs data
How are you positioned ahead of the holiday weekend? Tell us below:
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3ea272bdaa81107d4b47171bb2d08e7c | https://www.cnbc.com/2015/09/03/lights-camera-jobs-but-not-where-you-might-think.html | Lights! Camera! JOBS! But not where you might think | Lights! Camera! JOBS! But not where you might think
More than 2,100 miles east of Hollywood and almost 900 miles south of New York City, the state of Georgia is fast becoming a major player in the TV and film industry.
With the help of an inventive tax credit, the state's TV and film industry has boomed. Since the tax credit went into effect in 2008, the industry's economic impact has jumped from $260 million to an estimated $6 billion this year, Georgia estimates. The state now ranks third in production, behind California and New York, according to the Motion Picture Association of America. Business shows no signs of slowing, but the rapid growth has brought on some pretty stiff labor pains.
"What we've experienced is, we don't have enough crew to support all of the features and television series that are coming in," said Lee Thomas, deputy commissioner of the Georgia Film, Music and Digital Entertainment Office.
Rachel Crump, a student at Georgia Film Institute takes part in a training class on grip and lighting.Karina Frayter | CNBC
According to a 2014 report published by the office of Gov. Nathan Deal, industry executives said they wanted to hire talent in Georgia but found they were forced to recruit out of state. The Governor's High Demand Initiative Report noted the industry needed people trained, among other things as animators, artists, cinematographers, costume designers, forklift operators, plasterers and story boarders.
"It's a lot cheaper for production to hire local talent than to bring folks from LA or New York and have to pay their housing and per diem and everything else," said Kris Bagwell, executive vice president of EUE/Screen Gems Studios of Atlanta. "As a studio we've been working with the other studios and the government and the lieutenant governor's office to institute more trade training for film and television production jobs in Georgia."
To help address the labor shortage, the state is launching a certification program at the Georgia Film Academy at some point during this academic year. Thomas said the program is a partnership with the university system of Georgia and the states's technical college system. The academy will offer certification programs for entry positions in the industry, through one- or two-semester courses.
It will also help retrain experienced workers like electricians and carpenters on how they can employ their skills in film. The academy will help place students who complete their certifications, and for the best students it hopes to place them in work-study programs that would provide them with hands-on experience, or provide them with a chance to shadow a professional to get a close-up view of what working in the industry is like.
The academy will complement programs already in place, like those at Southern Crescent Technical College's Georgia Film Institute.
There is so much work right now, it just feels you get a nice feeling that the work might continue for a good while.Rachel Crump, student learning to be a script supervisor.
Fifty-year-old Rachel Crump is currently a student there. The widowed mother of four and former restaurant manager decided to go back to school and start a new career,after her youngest child started college. Her goal is to become a script supervisor, so to prepare she has taken advanced classes in film and video production. Ahead of her December graduation she is interviewing for a job as a production assistant for a new HBO series "Lewis and Clark," seeing this position as a way to get her foot in the door in an industry that shows no signs of slowing in her home state.
"There is so much work right now, it just feels you get a nice feeling that the work might continue for a good while," she said.
Of course, to keep that work, the state needs to give something to the industry, which is notoriously fickle and typically moves where its cheapest to film. Tax incentives are the most common way states have attracted production, and Georgia is no exception. Its incentive is slightly different from others though, in that there is no sunset on the incentive. To repeal or alter it would require state lawmakers' approval, and Thomas maintains they are not inclined to do so now given the positive impact the industry's had on Georgia's economy.
Georgia's incentive is also different in that it does not come in the form of a rebate, or cash the state has to take off its books at the end of the year. For a company spending over $500,000 in the state to produce a film or TV show, the state grants them a transferable income tax credit that starts at 20 percent and can increase to 30 percent. If the production company fails to use any or all of the credit, it can sell it to another firm, whether it is in the industry or not.
"Most of these companies, they are not going to have income tax liability in Georgia. So what they do is they sell them to individuals or corporations that have income tax," said Thomas. "And that's how they monetize them."
The Bureau of Labor Statistics forecasts jobs growth in the TV and film industry to be 3 percent through 2022, which would put it below expectations for overall job growth of 10.8 percent. While some of Georgia's job growth in the industry is expected to come from production relocating to take advantage of the tax incentive, and hopefully a better trained workforce, Bagwell said that in general, there is just more work to be had these days.
Growing cyberthreat means more jobs in US
"Really what you've seen is less stealing from other places, then just a huge explosion in cable television production in general," he said. "With Netflix and Amazon and the 'Breaking Bads,' the quality of television has just gone way up. And you are seeing a lot of television production these days."
The International Alliance of Theatrical Stage Employees expects Georgia's film industry to double in size in the next two years. This month alone, 40 films and TV shows are filming in the state, including season 6 of the "Walking Dead," and "Neighbors 2," the sequel to the comedy "Neighbors," starring Zac Efron and Seth Rogan.
This suggests there is plenty of work to be had in an industry that directly employs 22,400 workers in Georgia and 77,900 people indirectly, according to Georgia Department of Economic Development.
EUE/Screen Gems Studios in Atlanta, Georgia.Karina Frayter | CNBC
For Rick Harris Rick, owner of Dallas, Georgia-based Harris Diversified, the boom in the movie business has proven to be a boon for his air-conditioning business. An electrician by training, he went out on his own in 2003, providing power to outdoor events. He got his start in movies in 2007 when he bought two 20-ton air-conditioning units and was hired to cool the sets on the movie "The Blind Side."
"Our revenues increased every year," he said. "We are up to several million dollars now per year. 2015 has been great. It's going to be one of our best years so far."
Harris now owns 130 air-conditioning units and employees 14 people, after starting out with just himself and his son-in-law. Like others in the industry though, he has difficulty finding employees.
"That's one of our biggest challenges—finding staff or people willing to work," he said.
Big data is creating big career opportunities
Harris said most people don't take to working the long days and weekend required on a movie set, even though the pay is good, starting at $20 an hour.
Pay in general in the industry is high. The MPAA said on average workers in the industry make $84,000 a year, but again to get those jobs skills are needed and to keep the film industry coming, Georgia wants to make sure it trains the workers it needs, and maybe persuade those who come temporarily to stay with its lower cost of living and other amenities the industry should find appealing.
"In Georgia, you can shoot mountains, you can shoot beach, you can shoot plains. You can shoot pretty much everything except Antarctica and pure desert," said Bagwell. "And we have the busiest, largest airport in the states and really in the world. And it's one flight from the Hollywood. Twelve times a day. And one flight for most cities in the world."
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b4d864a1b06b386721c8fa0f40824ecd | https://www.cnbc.com/2015/09/03/teslas-model-3-to-cost-35k-in-march-but-production-still-2-years-away.html | Tesla's Model 3 to Cost $35K in March, But Production Still 2 Years Away | Tesla's Model 3 to Cost $35K in March, But Production Still 2 Years Away
VIDEO0:4100:41Tesla rolls out cars for the masses
Tesla's long-awaited mass-market car, the Model 3, now has a price and debut plan courtesy of the company's founder, Elon Musk, who posted the details to Twitter on Wednesday.
Elon Musk tweet
Read More
Elon Musk, co-founder and chief executive officer of Tesla Motors Inc.Yuriko Nakao | Bloomberg | Getty Images
The $35,000 price is just what was expected, and Tesla is well known for unveiling its cars well before they are available to buy. Still, it will likely disappoint many that a cheaper Tesla won't arrive until 2017 at the very earliest.
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What's taking so long, you ask? Right now, the batteries that would power the Model 3 would cost about as much as the car is slated to. Tesla is building an enormous lithium-ion battery manufacturing facility in Nevada to make its own batteries for far less money — the "Gigafactory" mentioned in Musk's tweet.
Not much more can be revealed about the Model 3 except that, as Musk mentioned cryptically during a Q&A session on Reddit, "It won't look like other cars." What does that mean, exactly? We'll find out in March.
Read More America's most tricked-out big-rig trucks
In the meantime, you can order yourself a new Model X — if you have the cash. The entry level model will cost around $5,000 more than a Model S with the same options, Musk wrote in yet another tweet — though you can easily spend well into the six figure range for the "Signature" high-end series.
Elon Musk tweet 2
The first Model X should be coming off the production line on September 29.
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5d259de8e3acc356a69e02071e3dc8e1 | https://www.cnbc.com/2015/09/04/4-ways-to-improve-your-credit-score.html?__source=yahoo%7Cfinance%7Cinline%7Cstory%7Cstory&par=yahoo&doc=104209713 | 4 ways to improve your credit score | 4 ways to improve your credit score
VIDEO0:5800:58Credit conclusions
Consumers are getting a better grade when it comes to how they use credit these days.
Nationally, credit scores are slowly and steadily starting to improve as more consumers who use credit are managing it more effectively. A recent report on FICO scores—the most widely used credit scoring system—found the national average score is currently at its highest level in nearly a decade.
It's an encouraging trend, since a credit score is one of the most important factors that lenders use to get a snapshot of risk as they decide what rates to offer on credit cards, private student loans, car loans, home insurance and mortgages. The higher the credit score, the better the rate for which consumers will qualify.
Read More What millennials don't know about credit cards
Your FICO score can range from 300 to 850. In April 2015, the average FICO score was 695 up from 688 in October 2005. According to Credit.org, a good credit score is above 680, but those with scores of 740 or higher are considered excellent. Those will allow you to quality for the best rates.
FICO scores are calculated from many different pieces of credit data grouped into five different categories: new credit, length of credit history, types of credit in use, and the most important: your payment history and the amounts you owe.
Late payments will lower your FICO score, but establishing or re-establishing a good track record of making payments on time can raise your score. So how can you improve your score?
The first step in fixing your credit. Check your report—it's free.
The Urban Institute found that 35 percent of Americans have debt that has gone into collection and 5.3 percent have debt that is at least 30 days past due. Yet, many consumers may not be aware of late payments and unpaid debts until they check their credit report. So do that first.
Read MoreWhich balance should you pay off first?
Go to AnnualCreditReport.com to request a free copy of your credit report from each of the three major credit bureaus: Equifax, Experian and TransUnion. Your credit report contains the information that is used to calculate your score. So you want to make sure there are no errors.
You can also get your credit report directly from the credit reporting agencies for a small fee, but there are other ways to get a free credit score.
You can get free credit scores from Quizzle.com, Credit.Com and CreditKarma.com—which may draw on your credit information from one or more of the credit bureaus and also offer resources to help you improve your score.
And, as of August 2015, the following credit card issuers also provide customers access to their FICO credit score for free: American Express, Barclaycard US, Discover, First National, Citi, Chase and Bank of America.
The most important factor impacting your credit score is your payment history.
If you have missed payments, start paying regularly and stay current. Use online bill pay through your bank to schedule automatic payments for your monthly credit card, utility, rent, mortgage and other bills. Missed or late payments are not easily fixed. But the longer you pay your bills on time the more your score will increase.
Read MoreWhy credit card debt is getting riskier
"Pay on time. Pay off or down the higher interest balances - and take the discretionary income you have to work down that debt," said Susan Keating, president and CEO of the National Foundation for Credit Counseling (NFCC).
Go to a non-profit credit counseling agency to work with a financial professional to help you decrease your total debt load, better manage your money and improve your credit score.
You can schedule a one-on-one consultation through the NFCC's Sharpen Your Financial Focus program at SharpenToday.org.
Research from Ohio State University shows that nearly three-quarters of the clients who participated in the Sharpen program reported paying their debt more consistently—and clients improved their credit score by 20 points on average in less than two years.
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a1c2d16928e96d88da39fd67c36af146 | https://www.cnbc.com/2015/09/04/draghi-doesnt-need-to-do-moreyet-ex-ecb-member.html | Draghi doesn't need to do more...yet: Ex-ECB member | Draghi doesn't need to do more...yet: Ex-ECB member
VIDEO2:2702:27Monetary policy can't do much: Bini SmaghiEuropean Central Bank
Mario Draghi, the President of the European Central Bank (ECB), doesn't need to "uncover all the cards" he has in his hand to solve the euro zone crisis, a former member of the ECB's governing body told CNBC.
"He doesn't need to uncover all the cards right now, and I don't see anything before early next year, maybe spring," Lorenzo Bini Smaghi, chairman of French bank Societe Generale and an ex-member of the ECB executive board, told CNBC.
On Thursday, the European Central Bank downgraded its inflation forecast and its President Mario Draghi reminded the markets of its "willingness to act", after weeks of market volatility that has dented the euro zone's growth outlook. The volatility has been sparked by concerns about China's economic growth.
"What you do not want to see is the appreciation of the euro," Bini Smaghi warned.
Lower oil prices should help increase domestic spending in the U.S. and Europe soon, which could help boost economies in both regions, he added.
Follow us on Twitter: @CNBCWorld
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b85e68032f3f1d0575b2a29f076dbf4f | https://www.cnbc.com/2015/09/04/europe-must-do-more-to-tackle-migrant-crisis-un.html | Why Europe migrant crisis risks turning into disaster | Why Europe migrant crisis risks turning into disaster
VIDEO2:1802:18More needs to be done on EU migrant crisis: UN official
VIDEO1:2501:25Migrant crisis: Europe has 'lost its soul'Europe News
VIDEO2:5002:50 We’re stopping migrants under EU protocols: Hungarian officialSquawk Box Europe
VIDEO2:4002:40How to help solve Europe's migrant crisis: UN under-secretary
VIDEO1:5401:54Hungary builds migrant-deterring wall Squawk Box Europe
VIDEO1:4701:47Europe's migrant crisis
United Nations (UN) officials spoke out on Friday to criticise European countries for their response — or lack thereof — to the worsening migrant crisis across the region, as political leaders disagree over what to do.
"The real issue here is the (European Union) member states, who are not prepared to recognise the fundamental reality that either there is a European solution to this, where everybody shares with a sense of solidarity and responsibility, or there can be no great improvement to the situation," Peter Sutherland, UN Special Representative of the Secretary-General for International Migration, told CNBC on Friday from the international Ambrosetti Forum in Italy.
"If everybody retires behind their own borders and their own lines of defense, this will be a continuing and terrible disaster."
Also on Friday, Antonio Guterres, the UN High Commissioner for Refugees, said a divided Europe would benefit only smugglers and people traffickers, according to Reuters. Guterres appealed for the European Union to do more to helping migrants — many of them refugees fleeing the strife in Syria.
Getty Images
Record numbers of migrants are heading to Europe's borders, hoping to escape violence and instability across the Middle East and North Africa. Europe's border agency recorded 340,000 illegal entries into the European Union in the first seven months of the year.
More than 300,000 people had risked their lives this year trying to cross the Mediterranean, according to the UN Refugee Agency. More than 2,500 of those died or went missing in their attempt to reach Europe.
Read MoreBy numbers: Europe's migrant crisis
On Friday, Sutherland criticized European Union states, such as Slovakia, which have stated they will not take in non-Christian refugees.
"If a number of countries in central and eastern Europe that suggest they will not accept those who are not Christians as refugees, I find that quite incredible, having regard to the values that we all collectively espouse. That is unacceptable," he told CNBC.
Another eastern European country, Hungary, was heavily criticized this week for blocking migrants from travelling into the rest of Europe, by sealing off a main train station in its capital city of Budapest.
Hungary, which is a member of the European Union, is also rushing to build a four-meter tall fence along its border with Serbia in a bid to prevent more migrants from entering.
European countries located along the Mediterranean Sea, like Italy and Greece, have also received huge inflows of people. This has proved particularly challenging for Greece, as it grapples with its own economic and political crisis.
According to the UN Refugee Agency, of the 300,000 refugees and migrants who crossed the Mediterranean this year, almost 200,000 landed in Greece.
On Friday, former Greek finance minister, Yanis Varoufakis, termed the situation a "humanitarian crisis," in an interview with CNBC.
"When you have women, children, young people, old people arrive in their thousands on your shores, during a very specific point of time, this is clearly not an attempt by them to jump the queue of migration or anything like that, this is a humanitarian crisis," he told CNBC.
"What you have to do at that point is just throw your doors and gates open and the share the burden of doing this within Europe."
He added: "This sight of our leaders squabbling as to who is not going to do their humanitarian duty towards these people—this is going to remain as a stigma upon Europe."
Follow Luke on Twitter: @LukeWGraham
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2081a7783f9bbdc1b9c7838df6ec2d05 | https://www.cnbc.com/2015/09/04/pen-sharply-lower-after-jobs-report.html?utm_source=wnd&utm_medium=wnd&utm_campaign=syndicated | Stocks drop about 3% for week; China, Fed eyed | Stocks drop about 3% for week; China, Fed eyed
VIDEO4:2604:26Economy outperforms stocksHalftime Report
VIDEO3:2803:28Cashin: Now Fed has to raise rates
VIDEO1:5501:55Bull market is not over: Bob Doll
VIDEO3:4503:45Pisani's market: Stocks lower at open
VIDEO1:5401:54August jobs up 173,000Squawk Box
U.S. stocks closed more than 1 percent lower Friday ahead of a long weekend as uncertainty about the timing of a rate hike and Chinese economic growth continued to weigh.
The major averages ended off session lows but still logged losses of about 3 percent or more for the week.
"You've got a buyers' strike and a lot of buyers anxious to get out ahead of a long weekend, ahead of pent-up news out of China," said Art Hogan, chief market strategist at Wunderlich Securities.
Mainland Chinese stock markets reopen Monday after a four-day weekend and ahead of several regional reports on trade and inflation due next week. U.S. stock markets are closed Monday for the Labor Day holiday.
"I think it's a combination of continued jitters overseas," said Bill Stone, chief investment strategist at PNC Asset Management. "China was closed, but Japan wasn't. That and Europe set us off on a bad start."
European stocks extended losses to close more than 2 percent lower following the employment report. Mainland Chinese stocks were closed for a second straight day for a public holiday. The Nikkei closed down 2.15 percent. The Hang Seng declined 0.4 percent.
Stone noted the jobs report is also "probably not enough to settle the riddle on when the Fed will move." PNC expects a hike in September, or at least sometime later in 2015.
The Dow Jones industrial average closed about 272 points lower after earlier falling 348 points, with DuPont and Goldman Sachs the greatest blue chip decliners. Materials and financials lost more than 1.5 percent to lead all 10 S&P 500 sectors lower.
The S&P 500 closed on the edge of correction territory, off 10.00 percent from its 52-week high. The Nasdaq composite and Dow closed in correction territory.
"On balance I think the report was a good one, and if we weren't in the middle of market volatility and global turmoil we'd be set for a hike in September," said Liz Ann Sonders, chief investment strategist at Charles Schwab.
The August nonfarm payrolls report showed that 173,000 jobs were created, missing expectations of 220,000. The unemployment rate fell more than expected to 5.1 percent, while average hourly wages increased more than expected by 0.3 percent, for a 2.2 percent gain over the past 12 months.
Strategists said a decline in unemployment and an increase in wages could support the Fed's case for a rise in rates. Analysts also noted the August preliminary jobs number is historically most prone to higher revisions due to seasonal factors.
"I think the report is stronger than the headline. As a result it probably gives the Fed what it needs to raise rates in September but it also gives it cover if it decides not to," said Kate Warne, investment strategist at Edward Jones. "It does provide of evidence that the economy continues to improve."
Read MoreFed won't hike rates into volatile market: Economist
Just ahead of the 8:30 a.m. EDT report, Dow futures were down about 140 points.
The dollar pulled back from a brief spike to trade mildly lower against major world currencies, with the euro higher above $1.11 and the yen stronger near 119 yen against the greenback.
In the Treasury market, the lost most of initial gains to trade near 0.69 percent. The 10-year yield held around 2.13 percent.
"The report was still mixed. There's something for everyone in the report," said Chuck Self, chief investment officer at iSectors. He noted upward revisions to July's figures, the lower unemployment rate and the increase in average hourly earnings as positives, while factors such as the relatively low participation rate were negatives.
"My view is that given the controversy... the Fed is going to wait to December. They don't want to cause disruptions," he said.
Read More Spike in volatility creates 'trader's paradise'
"I think (the report) offers something for everybody but the markets don't like it," said Alan Rechtschaffen, financial advisor and senior vice president at UBS Wealth Management Americas.
"Inflation is just languishing," he said. Despite lower unemployment and slight gains in wages, Rechtschaffen said the bigger concern is China's effect on the plummeting commodity market and the potential deflationary pressures.
U.S. crude oil futures settled down 70 cents, or 1.5 percent, at $46.05 a barrel. The weekly Baker Hughes North American Rotary Rig Count showed a decline of 13 . Brent crude traded lower below $50 a barrel.
Major U.S. Indexes
Just prior to the release, Richmond Federal Reserve President Jeffrey Lacker—a known hawk—said at a breakfast the labor market no longer warrants zero rates. In a Reuters report he added that it is unlikely a weak unemployment report Friday would materially alter the labor picture or monetary policy outlook and that the biggest argument in favor of hiking rests on strengthening consumer spending.
U.S. stocks closed narrowly mixed Thursday, giving back sharp opening gains, as investors turned cautious ahead of the Friday morning report.
There were no major earnings due on Friday.
Read MoreEarly movers: VNCE, FB, GPS, DIS, COO, RCL, CMG & more
The Dow Jones Industrial Average closed down 272.38 points, or 1.66 percent, at 16,102, with DuPont leading all blue chips lower. Merck was the worst performer for the week, off 6.8 percent. Intel was the only blue chip posting weekly gains, up 0.35 percent.
The Dow transports closed down 0.98 percent with Avis Budget leading most constituents lower.
The closed down 29.90 points, or 1.53 percent, at 1,921.23, with materials leading all 10 sectors lower. No sectors gained for the week, with utilities falling 5 percent as the worst weekly decliner.
The Nasdaq closed down 49.58 points, or 1.05 percent, at 4,683.92. Apple ended lower for a 3.55 percent weekly loss, down 1.01 percent for the year so far.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 27.5.
About three stocks declined for every advancer on the New York Stock Exchange, with an exchange volume of 848 million and a composite volume of nearly 3.2 billion in the close.
High-frequency trading accounted for 49 percent of this month's daily trading volume of about 7.9 billion shares, according to TABB Group. During the peak levels of high-frequency trading in 2009, about 61 percent of 9.8 billion of average daily shares traded were executed by high-frequency traders.
Gold futures settled down $3.10 at $1,121.40 an ounce.
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37df5d1dd6a748671ae5a65dc48c781d | https://www.cnbc.com/2015/09/04/saudi-arabia-reassures-on-oil-prices-strategist.html | Saudi Arabia reassures on oil prices: Strategist | Saudi Arabia reassures on oil prices: Strategist
VIDEO3:1603:16Iran deal, Syrian refugees on Saudi mindsClosing Bell
While Saudi King Salman bin Abdul-Aziz Al Saud Salman met with President Barack Obama on Friday to discuss the Iran deal, the country's finance minister also assured investors in a forum that Saudi Arabia will weather the decline in oil prices, said Helima Croft, RBC Capital Markets' chief commodities strategist.
Croft said in the forum, which she attended, the message was "that they had dealt with low oil prices before; they can deal with it again and also importantly that the prices will eventually rebound. They won't be in this environment forever."
Saudi Arabia remains the world's largest oil exporter, and it has committed to pumping crude freely despite a recent price decline.
However, while the kingdom keeps emphasizing that demand will ultimately push oil prices higher, Croft said that isn't necessarily a given.
"What if we don't get that demand-driven recovery into the $70s next year? Do they re-evaluate their policy on production?" she said Friday in an interview with CNBC's "Closing Bell."
Salman met Obama at the White House on Friday to seek more support in countering Iran. It is the king's first visit to the United States since ascending to the throne in January 2015 and comes after the U.S. agreed to a nuclear deal with Iran in July.
Croft said that while everyone is being publicly polite, there are tensions behind the scenes.
"The Saudis are very, very alarmed at the idea of Iran coming back in from the cold, being able to have a new financial windfall that they can put behind their foreign policy objectives in the region. So President Obama is going to have to do a lot of work to reassure the Saudis that he has their interests at heart."
Russia is the key to getting Saudi oil output cuts: Analyst
OPEC supply cuts unlikely: Enel CEO
Russia will not cut oil production: Deputy PM
Meanwhile, U.S. Treasury Secretary Jack Lew told CNBC Thursday that none of the sanctions against Iran will be lifted until the country completes all the steps it has to take. That means it could be a while before Iran's oil hits the global market. Traders have been concerned about the impact of further supply on crude prices.
Croft thinks that Iran's supply likely won't come online until the end of the second quarter of 2016 because of "the types of modifications the Iranians are going to have to do to their facilities to be compliant with the deal."
She also doesn't think the output will be 1 million barrels a day, as has been suggested, and instead will fall somewhere between 375,000 to 500,000 barrels per day.
—CNBC's Matthew Belvedere and Reuters contributed to this report.
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bf5d680d241f05e81ed2b7102c41f675 | https://www.cnbc.com/2015/09/04/volatility-and-value-plays-pros-pick-6-top-stocks-and-etfs.html | Traders work on the floor of the New York Stock Exchange.Lucas Jackson | Reuters
Stocks moved into correction territory Friday afternoon, with the Dow Jones Industrial average declining more than 300 points and the falling more than 1.5 percent in midday trade.
Goldman Sachs was the biggest blue chip decliner of the day, as the financial sector lost over two percent to lead all ten S&P 500 sectors lower.
So where do money managers put their money to work amid the continued selloff?
Read MoreSpike in volatility creates 'traders's paradise'
United Capital CEO Joe Duran, with $15 billion under management, told CNBC's "Power Lunch" "If you believe the market is due for a correction, say, a 15 percent drop, then ETFs might be the best place to position yourself right now."
Duran's top pick is the iShares S&P 100 ETF. "This domestic mega-cap ETF is a play on the cheapest sector of the market. On a relative fundamental valuation basis, it is also the safest."
In Europe, Duran likes the Vanguard FTSE Europe Index Fund, "this is a bet on the significant monetary stimulus by the European Central Bank as it pumps money into financial assets."
Another area Duran thinks is well-worth watching are emerging markets. "They are larger than developed markets and where all the growth is. If you can stomach the volatility, they are amazingly cheap." Duran recommends the Vanguard FTSE Emerging markets Index Fund ETF.
Read MoreHere are two potential market movers next week
Ernesto Ramos, head of equities at BMO Asset Management, with $250 billion in assets, is bullish on value plays via his fund, the BMO Large Cap Value Y, with an annualized three year return of more than 14.35 percent.
Ramos told CNBC's "Power Lunch" Friday "We expect double digit earnings growth for the next 12 months in the U.S., and commensurate returns. For us, volatility has provided excellent opportunities to pick up stocks at cheap prices."
Ramos' top picks are Apple, Verizon and Alaska Air Group.
"In times like these, we advise clients to stay the course and not make changes to their portfolios," said Ramos. "
Disclosure: Ramos owns these three stocks Indirectly through BMO GAM funds.
CNBC's Brenda Hentschel contributed to this story
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8045aa673877928db9f7a29b2a3b0397 | https://www.cnbc.com/2015/09/08/china-slowdown-fears-not-in-germany.html | China slowdown fears? Not in Germany | China slowdown fears? Not in Germany
Germany's exports and imports hit a record high in July – a welcome sign for Europe's biggest economy as the region braces for a slowdown in the Chinese economy to hit.
Exports rose a seasonally adjusted 2.4 percent from a month earlier to 103.4 billion euros ($115.35 billion) and imports rose 2.2 percent 80.6 billion euros -- the highest values since records began in 1991, Germany's Federal Statistics Office said on Tuesday.
Getty Images
"The Germany trade balance data was simply astonishing and the reading of a 22.8 billion euro (trade surplus) was very encouraging," Naeem Aslam, chief market analyst at AvaTrade, said in a note.
In contrast to the stronger-than-expected trade numbers from Germany, data from China on Tuesday showed the country's dollar-denominated exports declined by 5.5 percent year-on-year in August, while imports slid 13.8 percent.
China trade picture remains grim in August
Germany will set another export record this year despite China slowdown concerns, the head of the German trade association told newspaper Der Tagesspiegel at the weekend.
Still, economists warned Germany was unlikely to remain immune from slowing Chinese growth and that more needed to be done to boost domestic demand.
"The news on the export front for Germany is imperative; the broader story is that Germany's trade surplus is getting bigger and bigger and you can see it as a giant sponge taking demand out of the rest of the world," Stephen King, chief global economist at HSBC told CNBC on Tuesday.
"It's the saver of first resort in the world economy and ultimately what we need is for Germany to reduce its trade surplus by boosting domestic demand, supporting the rest of the euro zone and the rest of the world," he said.
Why China is a serious problem for the euro zone
China was Germany's fourth biggest export market in 2014, according to Federal Statistics Office and a slowdown in China is expected to be a headwind for Germany's export-driven economy.
"Germany needs to keep a very close eye on its trade surplus data which has blown well out of proportion according to the EU limits," said Aslam at AvaTrade. "The country needs to invest that extra capital on different investment projects within the country and also contribute towards other euro zone countries."
Otmar Issing, a former chief economist at the European Central Bank, told CNBC at the European House-Ambrosetti Forum that Europe's problems could not be solved by more investment from Germany alone.
VIDEO1:4901:49China slowdown: How concerned is Europe?Investing Edge
Asked whether he was concerned about the impact of a China slowdown on Germany's economy, Issing said that German savings have gone down and that was a good sign that sources of growth were moving to domestic demand.
"On other hand, it would be surprising if a slowdown in China did not have an impact on the economy of the world and also Germany, which is export-led and especially for German carmarkers – China is the most important market now," he said.
German carmakers such a BMW, which benefited from a boom in China's economy over the past decade, have suffered from the country's weakening growth outlook and anti-corruption drive. BMW shares have tumbled about 30 percent from a peak hit in March.
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de59479aae43175ac8ed39a0aed92397 | https://www.cnbc.com/2015/09/08/daniel-lubetzky.html | Daniel Lubetzky | Daniel Lubetzky
Daniel Lubetzky, CEO, KindSource: Kind
Daniel Lubetzky, founder and CEO of KIND, is on a mission to make the world a little kinder one snack and act at a time. A pioneering social entrepreneur working to build bridges between people through innovative models, Daniel is also the founder of PeaceWorks Inc. and the co-founder of Maiyet and the OneVoice Movement. He is the author of the New York Times bestseller "Do the KIND Thing."
He will be speaking at iCONIC:DC on November 11, 2015. Register today.
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4ab36f6f80a363a499c7cae1aab5a599 | https://www.cnbc.com/2015/09/08/here-come-the-bearish-analyst-comments-on-alibaba.html | Here come the bearish analyst comments on Alibaba | Here come the bearish analyst comments on Alibaba
Hong Wu | Getty Images
After being up as much as 4.5 percent Tuesday, Alibaba shares reversed sharply to down 2 percent midday on cautious comments from the head of investor relations, Jane Penner, at Citi's Global Technology Conference.
What she said has already caused one analyst to cut earnings estimates and price forecasts. More are likely to follow, which could weigh on the shares this week.
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f3ba5f688d701625e15fda948756c96d | https://www.cnbc.com/2015/09/08/vanity-fairs-titans-of-tech.html | Source: Vanity Fair
Innovators and influencers. Disruptors and visionaries.
Vanity Fair's New Establishment list, now in its 21st year, reflects the tetonic shift in power among world leaders in technology, business, television, film, politics and media.
Many were in grade school when the New Establishment began publication. A few were in diapers. Today, these pioneers of change lead startups worth $1 billion or more, including Facebook, Uber, Airbnb and Snapchat.
Mark Zuckerberg, 31, tops this year's list, on the meteoric strength of his social media empire which reaches 15 billion users through Facebook, Instagram, WhatsApp and Messenger.
Travis Kalanick, 39, ceo of Uber, is in second place, thanks to a 'sharing economy' business model that has completely upended the transportation industry.
Read MoreThe List: Cars on call
According to Vanity Fair, "Uber is currently valued at around $51 billion, making it the hottest unicorn— as billion-dollar start-ups have come to be known—in a Valley increasingly filled with them."
Brian Chesky, a former body builder turned ceo of Airbnb, ranks in eighth place. The company, arguably one of the world's largest hospitality companies, is now worth an estimated $25 billion, and saw its business travel grow more than 700 percent in a single year
In tenth place, Elizabeth Holmes, age 31, is the newest entrant on the list. "In a market overrun with pizza-delivery apps, Holmes has become something of a heroine for starting Theranos, which offers cheaper and less invasive blood testing," said Vanity Fair editor Betsy Lack. "Last year, she became the world's youngest self-made female billionaire when Theranos raised money at a nine billion valuation."
Evan Spiegel, age 25, climbed the ranks from 20 last year to 12 this year, as head of the instant messaging service, Snapchat. According to Vanity Fair, "Unlike a number of his contemporaries, Spiegel is interested in creating revenue sooner rather than later."
Millennials aside, venture capitalists Marc Andreessen, age 44, and Ben Horowitz, age 49, nabbed 16th place, thanks to "pretty impressive investments" in Pinterest, Instacart and Slack this year. Andreessen, an "indefatigable" Twitter devotee, and Horowitz, also took early stakes in Airbnb, buzzfeed, Facebook, Uber rival Lyft, skype and Twitter.
To some, according to Vanity Fair, Andreessen Horowitz's "only perplexing position" has to do with the larger state of the tech industry (than as) the Valley's top cheerleader against the existence of a much-feared bubble.
"Where's the kaboom?" notes Andreessen's Twitter profile. "Whether or not we are indeed in a bubble is likely to influence the investors' reputation just as much as their bottom line."
Vanity Fair's 2015 New Establishment list is currently online and on sale at newsstands this week.
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a62fb7010dabdac9b9fbf90a8d9e53bb | https://www.cnbc.com/2015/09/09/us-stocks-open-sharply-higher-amid-asia-rebound-stimulus.html?utm_source=wnd&utm_medium=wnd&utm_campaign=syndicated | Stocks close down 1.4% despite global rally | Stocks close down 1.4% despite global rally
VIDEO1:3901:39Stocks off highsPower Lunch
VIDEO3:2103:21Stocks give up huge gains Power Lunch
VIDEO1:4701:47Tax talk boost Nikkei, stocks soars 7.7%
VIDEO2:5902:59Global rally only short-term jolt: Pro
VIDEO2:0902:09China impact on U.S. economy
VIDEO2:3102:31Stocks rally at open
U.S. stocks closed more than 1 percent lower Wednesday, weighed by declines in oil prices and failing to extend a rally in global markets despite talk of stimulus overseas. (Tweet This)
"Again, after a really, really strong day yesterday and a gap up in the opening, we sold off," said Peter Coleman, head trader at Convergex. He noted pressure from weakness in oil and other commodities.
"This is the volatility that we're going to be in for the next few weeks between the Fed and China," he said. But "I don't think we'll go back and retest the lows from two weeks ago."
Selling accelerated leading into the close. In early afternoon trade, stocks turned lower to give up an opening rally of about 1 percent.
"I think the reversal has to do with the oil prices," said Peter Cardillo, chief market economist at Rockwell Global Capital. "Of course, the Apple event didn't move the stock much."
Apple closed nearly 2 percent lower, after initially spiking more than 1.5 percent amid its afternoon event, at which the company unveiled new products.
"Investors are clearly not impressed with the Apple event (Wednesday), mostly because nothing too unexpected came of it," said John Divine, analyst and assistant editor at InvestorPlace.com. "We all knew the next iteration of the iPhone wascoming, but the iPhone 6S and 6S Plus didn't blow anyone away."
Read MoreApple details new iPad Pro, iPhones and TV system
Energy ended down almost 2 percent to lead all sectors in the S&P 500 lower, while Chevron and Exxon Mobil were among the greatest blue chip decliners.
U.S. crude oil futures settled down $1.79, or 3.9 percent, at $44.15 a barrel. Brent also fell more than 3 percent to trade below $48 a barrel.
The Dow Jones industrial average closed down about 240 points, or 1.45 percent, after falling as much as 272.58 points in the minutes before the close. 3M, Home Depot, IBM and Apple had the greatest negative impact on the index.
Earlier, the Dow gained as much as 171.97 points in a failed attempt to join the S&P 500 and Nasdaq composite out of correction territory, less than 10 percent away from their 52-week highs. The Russell 2000 also briefly held out of correction mode.
"I think at the end of the day, while there's still hope triumphing here that China is going to do more, nothing definitive has been done, no certainty it's going to work," said Mark Luschini, chief investment strategist at Janney Montgomery Scott.
"I think we're seeing a little of that cooling enthusiasm for equities. The news is good. China recognizes its economic activity is slowing and is preparing to address it," he said.
The Nasdaq composite held mild gains for 2015 after reaching positive territory for the year Tuesday.
Read MoreHow to trade Apple before and after its big announcements
"At the end of the day, (there's) so much nervousness ahead of next week's meeting people are afraid of holding (positions)," said JJ Kinahan, chief strategist at TD Ameritrade.
Major averages 5-day performance
Traders also eyed the Job Openings and Labor Turnover Survey (JOLTS) which showed the number of job openings in July was a record 5.8 million, according to the U.S. Bureau of Labor Statistics. The hiring rate declined to 3.5 percent.
"Generally I thought the news was good. I wasn't too pleased about the hires," said Marie Schofield, chief economist and senior portfolio manager at Columbia Threadneedle Investments.
The key nonfarm payrolls report last Friday reinforced expectations that labor conditions are strong enough to support a rate hike, which could possibly come as soon as the Federal Reserve's meeting next week.
Weekly mortgage applications fell 6.2 percent as refinancings slid.
Treasury yields spiked after holding relatively steady Tuesday. The Treasury Department auctioned $21 billion of 10-year notes at a high yield of 2.235 percent.
Following the auction, the U.S. 10-year yield fell to 2.19 percent and the edged lower to 0.74 percent. Earlier, the 2-year yield hit 0.76 percent, near the highest level since April 2011.
"That's a market that's thinking the Fed could pull the trigger. The JOLTS data is further evidence the labor market is tightening," said Peter Boockvar, chief market analyst at The Lindsey Group.
The U.S. dollar pared gains to trade flat against major world currencies, with the euro above $1.12 and the yen near 121 yen against the greenback.
Earlier, stocks opened sharply higher following strong gains in markets overseas.
"It's the two giants in Asia, China and Japan, coming out with their fiscal moves," said David Lafferty, chief market strategist at Natixis Global Asset Management. "That combination certainly was powerful for Asia and that's spilling over into Europe and the U.S."
Japan's Nikkei index jumped 7.7 percent for its biggest one-day gain since 2008 and China's Shanghai Composite index closed up 2.3 percent.
The rally supported an initial surge in Europe, where the German DAX jumped about 2 percent before paring gains to close 0.3 percent higher.
"Today is more on, OK, the foreign markets did well enough last night. The rest of the working world reads the news and they don't want to miss out on a bounce," said Robert Pavlik, chief market strategist at Boston Private Wealth.
He added that bad economic news in China leading to expectations of more stimulus in the country also supported investor sentiment.
China's Ministry of Finance said the government will strengthen fiscal policy, boost infrastructure spending and speed up reform of its tax system, adding to other steps to re-energize sputtering growth.
Japanese stocks also rallied on back of comments by Prime Minister Shinzo Abe that the government aims to lower the corporate tax rate.
The Dow futures gained more than 200 points in early trade. U.S. stocks closed more than 2 percent higher for their second-best day of the year Tuesday, rebounding after a long weekend and their second-worst week of the year.
"Some global equity indices have gapped up in a bullish short-term development, and others have cleared minor resistance levels, such as their 20-day moving averages," Katie Stockton, chief technical strategist at BTIG, said in a morning note. "The impressive action may not be sustained for the balance of the week given intraday overbought conditions, but it may be enough to allow breakdowns to remain largely unconfirmed this Friday."
Major U.S. Indexes
On the earnings front, Krispy Kreme and Quiksilver were scheduled to report earnings after the close.
Read MoreEarly movers: AAPL, UAL, LNG, PLAY, CLR, M, YHOO & more
The Dow Jones Industrial Average closed down 239.11 points, or 1.45 percent, at 16,253.57, with Chevron leading all blue chips lower.
The closed down 27.37 points, or 1.39 percent, at 1,942.04, with energy leading all 10 sectors lower.
The Nasdaq closed down 55.4 points, or 1.15 percent, at 4,756.53.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded above 26.
About three stocks declined for every advancer on the New York Stock Exchange, with an exchange volume of 928 million and a composite volume of nearly 3.6 billion in the close.
Gold futures settled down $19.00 at $1,102.00 an ounce.
—Reuters contributed to this report.
On tap this week:
Wednesday
Earnings: Hovnanian, Palo Alto Networks, Box, Krispy Kreme
Thursday
Earnings: Lululemon Athletica, Finisar, Zumiez
8:30 a.m.: Jobless claims
8:30 a.m.: Import and export prices
10 a.m.: Wholesale trade
10:30 a.m.: Natural gas inventories
11:00 a.m.: Oil inventories
1 p.m.: 30-year bond auction
4:30 p.m.: Fed balance sheet, money supply
Friday
Earnings: Kroger, Mattress Firm
8:30 a.m.: PPI
10 a.m.: Consumer sentiment
1 p.m.: Oil rig count
2 p.m.: Treasury budget
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