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76b1888af37dbc9927feb83c96ec7e8d | https://www.cnbc.com/2015/09/21/altman-government-shutdown-probable-heres-why.html | Altman: Government shutdown probable—here’s why | Altman: Government shutdown probable—here’s why
VIDEO2:2102:21Fed likely to raise over next 3-4 months: Roger AltmanSquawk Box
There is one key difference between this government shutdown crisis and previous ones, Evercore's Roger Altman said Monday.
"This is a different situation than the recent shutdown crises because it involves a social policy issue—Planned Parenthood—instead of the typical fiscal and sequester issues. It might be harder to resolve because of that," Altman told CNBC's "Squawk Box."
"It's probably the case that there's going to be a shutdown," said Altman, a Treasury official in the Carter and Clinton administrations.
Roger Altman, founder and chairman, Evercore Partners.Adam Jeffery | CNBC
U.S. lawmakers have until the end of the month to finalize the country's budget, but are at odds over a bill that would provide funding for the nonprofit organization. Investigations are underway into two secretly recorded videos that appeared to show Planned Parenthood was involved in the illegal sale of aborted fetal tissue for medical research.
Altman said a short shutdown will not have a meaningful impact on the U.S. economy, "although, there's no guarantee of that."
—Reuters contributed to this report.
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29b84eb030613bca8782673316716c60 | https://www.cnbc.com/2015/09/21/analyst-advertisers-cannot-ignore-gen-xers.html | Analyst: Advertisers cannot ignore Gen Xers | Analyst: Advertisers cannot ignore Gen Xers
As it turns out, millennials are the ones doing the most online shopping but they're not the ones spending the most money. (Tweet This)
A new report by Comscore, on the digital habits of millennials, found that the 35- to 54-year-old segment, also known as Gen Xers, are spending the most money online.
So why are advertisers intensely focused on young spenders?
Gian Fulgoni, co-founder of Comscore, told CNBC's Squawk Alley it has to do with brand loyalty.
"It's believed that if you can establish loyalty to your brand early on in somebody's life, you have a better chance of then maintaining that brand loyalty as the person ages," he said.
Are millennials worse off than Gen Xers?
Fulgoni added that Comscore hasn't seen any evidence of millennials spending less time on Facebook. In fact, about an hour of their day is spent on the Facebook mobile app according to the report.
"In total they spend about four hours a day online," said Fulgoni. "So they're very, very heavy digital users and very heavy social users." This fact, something digital advertisers have to keep in mind.
Fulgoni said another aspect advertisers should factor in about millennials is how their digital habits differ from Gen Xers.
VIDEO2:4102:41Gen X now more affluent than boomers: SurveySquawk Alley
"[Millennials] are much, much heavier viewers of video and television content on these mobile devices and that's something that's of great concern to all the advertisers, coupled with a question about whether as they age, will their behavior patterns revert back, to some degree, to mimic that of older people."
Despite the challenge of catering to millennials, Fulgoni said marketers cannot afford to ignore the older, middle-aged segment because that's where the spending power lies.
In fact, Gen Xers' index of spending power is 25 percent higher than average, according to Fulgoni.
"You really have to spread your wings a little wider than maybe what ideally you like and that kind of increases the cost a little, I think, for any marketer," he said.
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60e79c9e8d9b0ac05d14f86976de4253 | https://www.cnbc.com/2015/09/21/apple-speeds-up-electric-car-effort-sees-2019-shipments-dj-citing-sources.html | Apple speeds up electric-car effort, sees 2019 shipments: WSJ, citing sources | Apple speeds up electric-car effort, sees 2019 shipments: WSJ, citing sources
VIDEO1:0601:06Apple accelerates efforts to build electric car: ReportPower Lunch
Apple has put more weight behind its electric car efforts and has set a target shipment date of 2019, The Wall Street Journal reported Monday, citing sources.
The tech giant has called the car initiative, named "Titan" within the company, a "committed project" and has met with California officials in determining the feasibility of an Apple car, according to the report. The outlet reports the employees spearheading the 600-person project have been given permission to triple the number of people working on it.
It marks the latest in a string of reports suggesting Apple could look to compete in the automotive industry. The Journal said the 2019 target date is far from concrete, as the company would still need to refine features and clear regulatory and production barriers.
Apple speeds up electric-car effort.Getty Images
Apple would look to apply its battery, software and hardware production experience from its range of devices to churning out cars. Under the reported timeline, the company would come into the electric car market much later than many of its established would-be competitors.
Read MoreApple car based on BMW i3? 'Nice idea': CEO
The segment has also come under pressure in the last year amid a sustained low oil price environment. West Texas Intermediate crude prices have fallen nearly 50 percent in the last year.
Apple declined to comment to CNBC.
Read MoreApple meets with self-driving care regulators: Report
Apple shares were trading about 1 percent higher Monday afternoon. Shares of electric automaker Tesla Motors, which were trading higher earlier Monday, turned negative after the report.
Read the full Wall Street Journal report here.
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53034422f304fae31a6c9c8345256917 | https://www.cnbc.com/2015/09/21/as-china-tourists-return-amorepacific-lg-household-look-attractive.html | As South Korea tourism recovers, buy these stocks | As South Korea tourism recovers, buy these stocks
A customer browses nail polish at Amorepacific Corp.'s Innisfree store.Brent Lewin | Bloomberg via Getty Images
South Korea's consumer stocks lost their shine during the spread of the Middle East Respiratory Syndrome (MERS) earlier this year, but as the impact of the outbreak eases, some analysts see an opportunity to pick canny bargains.
Market watchers particularly favor the country's top cosmetic makers AmorePacific Group and LG Household & Healthcare (LG H&H), which are the favorites of big-spending Chinese tourists. Both stocks have fallen 14.3 and 6.8 percent respectively since South Korea's first MERS diagnosis on May 20.
"Concern over the recovery in Chinese inbound tourist traffic and Korean companies' local sales in China seem excessive," Nomura's Cara Song wrote in a note released on Monday.
"There has been a strong recovery in [Chinese tourist] traffic after the outbreak and weakness [in the shares] provides a good opportunity for investors," Song said.
Read MoreRiding the K-wave, these Korean stocks are set to soar
Spending by mainland holidaymakers has been a key driver of South Korea's domestic consumption in recent years, with visitor arrivals from China hitting a record high of 6 million last year. However, the outbreak of MERS which claimed the lives of 36 people and infected more than 186 in South Korea earlier this year, triggered widespread panic at home and mass tour cancellations abroad.
Last month, visitor numbers fell for the third straight month to 1,069,314, down 26.5 percent from the same period in 2014, figures from the Korea Tourism Organization (KTO) showed. The number of Chinese travelers – South Korea's biggest spending visitors – plunged 32 percent on-year.
Fortunately for South Korea, the situation looks like it's on the mend. More than 300,000 Chinese holidaymakers visited South Korea in the first two weeks of September, up 4.8 percent on-year, according to a report by local media The Korea Economic Daily on Monday.
Apart from the tourism industry's faster-than-expected recovery, South Korea's beauty products are also seeing booming demand in the mainland via e-retailers or offline channels such as brand stores.
According to figures by the Korea International Trade Association, China imported $378.3 million worth of Korean-made cosmetics in the first seven months of 2015, up a whopping 250.6 percent from a year earlier, making South Korea the second-biggest cosmetic exporter to China behind France.
VIDEO1:0601:06South Korean cosmetics makers shineStreet Signs Asia
Market watchers feel that AmorePacific and LG H&H are better poised than other domestic cosmetic makers to capture a bigger slice of overseas sales amid growing competition from Chinese and Japanese brands.
"Local Chinese brands are growing very quickly in lower-tier cities and [posing intense] competition in higher-tier cities. Furthermore, Chinese consumers are becoming increasingly attracted to Japanese products [because] product quality is high and prices have become more affordable. Only AmorePacific's 'Sulwhasoo' and LG H&H's 'WHOO' are well positioned to survive," the note cited online retailer VIP Shop Korea's CEO Mr. Shin as saying.
These factors bode well for the stocks of cosmetic makers, said Nomura's Song, who has a target price of 550,000 won and 1,083,600 won for AmorePacific and LG H&H, representing more than 47 and 29 percent upside from current trading levels, respectively.
Daewoo Securities' analyst Regina Hahm is also overweight South Korean cosmetic makers.
"I'm bullish on the cosmetic sector as a whole. [The selloff] wasn't about fundamentals; it was purely [driven by] external factors that are unexpected. It hasn't changed the core competitiveness that South Korean players have over global cosmetic brands," Seoul-based Hahm told CNBC by phone.
Read MoreFood and fashion: How K-drama is influencing Asia
Apart from the popularity of South Korean pop-culture abroad, higher product quality and reasonable price points compared to foreign rivals underpin the burgeoning appetite for Korean-made cosmetics in overseas markets, she said.
"[Even with a weaker yen] the price difference in Japanese brands is marginal," said Hahm who recommends buying LG H&H and AmorePacific as long-term investments.
Apart from cosmetic makers, Daewoo Securities' Hahm also names Hotel Shilla – part of the Samsung Group and the world's No.6 duty free operator – as one of her top picks in the consumer space.
"The impact from MERS will likely be short term and the company will recover in the third quarter. Hotel Shilla will also be opening a new duty free shop with Hyundai Development [and] that would give them better bargaining power ahead," she told CNBC.
Hotel Shilla, in a joint bid with Hyundai Development, was awarded a license in July to operate duty free stores in downtown Seoul. Both companies plan to build a 27,400-square meter store that would be the world's biggest downtown duty free outlet, with parking for 400 tour buses.
Correction: An earlier version misspelled Sulwhasoo.
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e57811c2f6ddc022b881e28fb8151f35 | https://www.cnbc.com/2015/09/21/asian-markets-called-higher-after-us-rebounds.html | Asian shares get a lift from rebound on Wall Street | Asian shares get a lift from rebound on Wall Street
A man monitors trading on the electronic screens at the Australian Stock Exchange in Sydney.Saeed Khan | AFP | Getty Images
Asian shares largely advanced on Tuesday, stabilizing from sharp declines in the previous session, as Wall Street ended higher overnight.
However, trading volumes were light, with markets in Japan closed for the National Day holiday and as worries over global growth lingered.
"It's quite apparent that investors are reluctant to get back on the horse in the risk markets [amid] growing uncertainty. The Fed's inaction last week was a major factor behind the market participants' decision to sit on the side-lines at the moment," IG's market strategist Bernard Aw wrote in a note.
The Dow Jones Industrial Average and S&P 500 closed up 0.8 and 0.5 percent respectively, recovering part of their Friday sell-off. The eked out marginal gains, weighed by a plunge in biotechnology plays on the back of renewed controversy over large price increases on some drugs.
Shanghai Comp jumps 0.9%
China's Shanghai Composite index trimmed gains into the final minutes of trading, but strengthening blue chips such as banking and property counters still pulled the bourse up nearly 1 percent.
Brokerage houses also rose following news of a possible market link-up between Shanghai and London. Orient Securities, Huatai Securities and Founder Securities made it to the leaderboard, climbing more than 4 percent each.
The benchmark CSI300 Index — which tracks the largest listed firms in Shanghai and Shenzhen — mirrored the movements in the Shanghai bourse to close up 0.9 percent.
Small-caps lagged, however, after outperforming the largest indexes in the previous sessions. The smaller Shenzhen Composite and the start-up ChiNext board edged up 0.7 and 0.2 percent, respectively, to more than one-week highs.
Read MoreChina's premier defends economy: Report
Despite the gains, investors remain nervous about the flash Caixin purchasing managers' index (PMI) for September due on Wednesday, analysts say.
According to a Reuters poll, the preliminary reading of China's massive manufacturing sector likely edged up to 47.5 from August's 47.1. However, it is expected to remain near six-and-a-half-year, pointing to a seventh straight contraction in activity on a monthly basis.
Attention also turned to Chinese President Xi Jinping's state visit to Washington this week, with industrial counters making gains on the back of speculations of business deals between the U.S. and China.
To be sure, there are analysts who prefer to temper their expectations for the meeting.
"I certainly wouldn't be building any expectations of the summit this week because we think it might be a bit of the frosty affair," Michael Kurtz, global head of equity strategy at Nomura, told CNBC. "One of the rather ironic effects of the summit is that once its out of the way, neither Washington nor Beijing will need to walk on eggshells as much as they have ahead of the summit. So both sides will be able to speak their minds on issues such as South China Sea."
In other news, the assistant chairman of the China Securities Regulatory Commission (CSRC) who came under police investigation last week has been removed from his post for "severe disciplinary violations," according to state media CCTV. Zhang Yujun, 53, is the first senior official from the securities regulator to be entangled in a government investigation over the country's stock market meltdown.
VIDEO4:5204:52China's Xi visits US: Expect a frosty affair?Squawk Box Asia
ASX gains 0.5%
Australia's index clawed back some of Monday's sharp losses.
Battered financial stocks managed a feeble rebound; Westpac closed up 0.7 percent, while Australia and New Zealand Banking andCommonwealth Bank of Australia ticked up modestly. Macquarie Group and QBE Insurance charged up 0.5 and 0.9 percent respectively.
Oil-related counters got a boost from higher crude oil prices, which climbed more than 4 percent overnight. Santos and Oil Search rallied more than 4 percent each, while Woodside Petroleum closed up 2.8 percent.
By contrast, gold names lagged after the precious metal retreated from near three-week highs on Monday. Evolution Mining and Newcrest Mining retreated more than 2 percent each.
Read MoreADB slices Asia growth forecasts
Kospi rises 0.9%
South Korea's Kospi index closed up, with automakers leading the charge following the government's announcement that it would investigate emissions of Volkswagen and Audi diesel cars after the German carmaker admitted rigging emissions tests on diesel-powered vehicles in the U.S.
Hyundai Motor and Kia Motors powered up more than 3 percent each, on the back of expectations that the scandal could benefit local car brands. Logistics company Hyundai Glovis rallied 3.6 percent, while automotive parts supplier Hyundai Mobis surged 5.3 percent.
Energy plays such as S-Oil and SK Innovation were also among the day's winners, up 3.1 and 1 percent respectively.
However, losses in other blue chips limited the index's advances. Samsung Electronics and Posco eased 0.4 and 1.4 percent respectively. LG Display tumbled 4.7 percent to three-week lows, hurt by a report from researcher Witsview who noted falls in LCD panel prices, Reuters said.
Read MoreAs South Korea tourism recovers, buy these stocks
Taiex up 0.7%
Taiwan's weighted index rose on Tuesday, tracking the positive cues from offshore markets, but gains were capped ahead of the central bank's quarterly policy meeting on Thursday.
The Central Bank of the Republic of China (CBC) may cut the benchmark discount rate for the first time since 2009, economists polled by Reuters said. Eight economists out of 14 re-polled by the newswire expect the CBC to lower its discount rate to 1.75 percent from 1.88 percent, marking its first rate change since 2011.
On the domestic data front, Taiwan's jobless rate steadied at 3.74 percent in August, unchanged from the prior month.
Meanwhile, statistics released by the Finance Ministry late Monday showed a decline in the country's export orders for the fifth consecutive month. Exports dropped 3.5 percent to $35.03 billion in August, nearly double of what economists were expecting.
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7d577f3ef01cb79bb804cfc7ed8f3744 | https://www.cnbc.com/2015/09/21/bears-driving-markets-for-now.html | Stocks likely to test lows in near future | Stocks likely to test lows in near future
VIDEO2:3702:37Will earnings fuel more volatility in US stocks?
Stocks are likely to test the lows of August before moving much higher, as traders look for clarity from the Fed, China and the upcoming earnings season.
Tuesday's trading is starting off rocky, with stock futures well in the red and European markets sharply lower. Commodities set the tone, with copper slumping 2.4 percent. Traders pin the drop on global growth fears, in part due to a new report from the Asian Development Bank which cut its growth forecast for China.
Meanwhile, miners were slammed with Glencore down 12 percent. Credit Suisse cut China demand assumptions and commented on the sector.
Read More
Fed uncertainty remains a concern, and Atlanta Fed President Dennis Lockhart speaks Tuesday at 6:30 p.m. ET. Lockhart also spoke Monday and said a rate hike was still possible for this year.
Traders expected volatility to continue after Monday's bounce higher. But did the S&P 500 already hit the highs of the year when it rose to 2,134?
"I think we're going to be here grinding around, and maybe even a little lower. I don't see us rally substantially from here, but I also don't see a big down move. I think we've seen the highs for the year," said Steve Massocca, managing director at Wedbush. "I think we're going to have to come to some kind of catharsis here for what's really going on."Stocks got a lift into the opening Monday after Fed speakers made clear the decision on rates was a close call, and that the central bank could still raise rates soon, said Scott Redler, partner with T3Live.com.
The S&P 500 rose 8 points to 1,966, but the market swung higher and lower during the day Monday. Biotechs, particularly, were slammed after Democratic front runner Hillary Clinton said she had a plan to tackle the high cost of drugs in the specialty market.
"I think we end higher for the year but over the next two to four weeks we could retest the August lows," said Redler. The August low was 1,867 on the S&P 500.
Read MoreXi has chance to clarify China role on world stage
While that view prevails, there is a more bearish tone to market talk since the Fed held back on a rate hike and turned the focus on China's slowing economy. Chinese President Xi Jinping visits the U.S. this week, and his first stop is Seattle where he gives a speech Tuesday night. Traders are looking for some reassurance on the Chinese economy and China's currency policy.
"I think that we're still churning through it. I'm going back to the Chinese yuan devaluation a few weeks ago, and I think the Fed was just another card that was played," said Massocca. "We're in a deflationary environment and I think that's going to be tough for stocks. It's certainly got to impact profitability. It's going to impact our economy going forward."
Low rates will prevent the market from falling very sharply, Massocca added.
Julian Emanuel, equities and derivatives strategist at UBS, agrees that the market is not likely to take a deep plunge.
"It's a bottoming process. Would it surprise us to test the bottom of the range? Not at all. Would it surprise us if it fell substantially through it? Yes, because you're at a 2.2 percent dividend for the S&P," he said. That's about the same as a 10-year Treasury note was yielding Monday.
"You're getting paid to wait and see if there's an earnings recovery in 2016," Emanuel said.
Read MoreFed window for a 2015 hike is closing quickly
There is no economic data Tuesday of note, and markets are awaiting comments from Fed Chair Janet Yellen, who is due to speak Thursday evening.
The U.S. Treasury auctions $26 billion in two-year notes at 1 p.m. ET. API oil inventory is released after the market close at 4:30 p.m. ET.
Redler said the S&P could stay stuck between 1940 and 1990, but the S&P 500 futures were trading closer to 1933 Tuesday morning. Dow futures were down more than 200 points before 8 a.m. ET.
"It's going to be a bit of indecision and nobody's going to do much. The positive is the biotechs did get beat up, and if the market wanted to use that a reason to sell off, it could have. You might get a few days of this before Yellen speaks on Thursday," he said.
Earnings are expected Tuesday from Autozone, CarMax, Carnival, ConAgra, Darden, FactSet and General Mills.
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5cb2be3347db98defd805f77a64a345c | https://www.cnbc.com/2015/09/21/biotech-falls-on-clinton-price-gouging-comments.html | Biotech falls on Clinton 'price gouging' comments | Biotech falls on Clinton 'price gouging' comments
VIDEO0:5100:51Biotechs drop after Hillary tweetSquawk Alley
VIDEO5:5705:57Turing CEO: Drug priced where we could make 'comfortable profit'Power Lunch
VIDEO2:4602:46Pill prices & politicsPower Lunch
VIDEO1:2601:26High costs for drug developmentPower Lunch
The major biotech ETF fell to its lows of the day after Democratic presidential hopeful Hillary Clinton said Monday she would take on "price gouging" in the pharmaceutical industry.
A Sunday New York Times article told of a specialty drug that went from $13.50 to $750 per tablet overnight. Responding on Twitter to this piece, Clinton said Monday she will propose a fix to the situation on Tuesday.
Clinton tweet.
The iShares Nasdaq Biotechnology ETF (IBB) was trading down more than 4 percent by early afternoon, taking a visible leg down around the time of the 10:56 a.m. ET tweet by the presidential candidate.
Biotech stocks are among the hottest group of stocks even as the bull market wanes. The ETF is up 27 percent over the last 12 months, compared with a 2 percent decline for the S&P 500 over the same period.
Investors in the biotech sector often feel as though they are immune from the market lows, according Bradd Kern, managing director at Armored Wolf, which is short IBB. Instead, he said, all the hot money in the sector makes it prone to sharp downward turns when confidence is shaken.
"I do think there will be more days like today," Kern said.
Shares of Retrophin, started by Martin Shkreli, traded down more than 11 percent following Clinton's tweet. Shkreli is also the founder and Turing Pharmaceuticals, which was the subject of the Times article.
Shkreli told CNBC's "Power Lunch" that he stands by the increased price of Daraprim, the specialty drug at the center of the aforementioned New York Times article.
Read More Clinton calls drug price hike 'outrageous,' vows plan
"At this price Daraprim is still actually on the low end of what orphan drugs cost and we're certainly not the first company to raise drug prices," he said.
"We paid a very, very large amount to buy an unprofitable medicine. We can't continue to lose money on the drug at that price so we took it to a price where we can make a comfortable profit but not any kind of ridiculous profit," Shkreli added. "Turing is a very small company. It's a new company and we're not a profitable company, so for us to try and exist and maintain a profit is pretty reasonable."
Still, the pharmaceutical sector may need reforms, Steve Case, chairman and CEO of investment firm Revolution told CNBC.
"A lot of development now is moving offshore that we're at risk of losing our lead in terms of innovation in this space in the United States," he said. "If we can figure out a way to lower the cost of development and expedite the process of getting these things from the labs into the marketplace, I think that will result in better products, better services for more people, better drugs at lower costs."
Correction: An earlier version misstated the time of Clinton's tweet
—CNBC's Evelyn Cheng contributed to this report.
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a834f078da4fc879979f47ac24a74fa8 | https://www.cnbc.com/2015/09/21/bogle-the-fed-did-the-right-thing.html | Investing legend Bogle: Economy is 'not vibrant' | Investing legend Bogle: Economy is 'not vibrant'
VIDEO1:2101:21Stage is set for cautious policy: Jack BoglePower Lunch
VIDEO1:1101:11Bogle says ignore the market noisePower Lunch
VIDEO5:4805:48Bogle: The Fed did the right thingPower Lunch
Legendary investor Jack Bogle said on Monday that the Federal Reserve did the right thing by not raising interest rates at its meeting last week.
"There are plenty of challenges ahead for our economy as the whole world economy gets into this messy state it's in," he said. "So I think the Fed is doing just the right thing under the old Hippocratic oath. First, do no harm."
Bogle, the founder of the world's largest mutual fund company, Pennsylvania-based Vanguard Group, spoke on CNBC's "Power Lunch."
Bogle described the U.S. economy as "adequately strong but not vibrant," citing wage pressure and a small workforce.
Jack Bogle: Best moves now to ride volatility
Fed's Lockhart makes case to hike rates this year
Fed's Bullard: October rate hike possible, but ...
He also recommended investors to start saving for retirement and college as soon as possible.
"There is no other way to do it. You want to start building early, as early as you possibly can, because that slope gets steeper and steeper; the more money you have to put in per month the closer you get to retirement."
He added that investors should be happy when a market goes down because that offers cheaper buying opportunities.
"When the markets go way down, it's great for buyers and bad for sellers," he said. "Just ignore all the noise."
—Elizabeth MacBride contributed to this report.
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b05cf02336daa40f9a4192e237298fd4 | https://www.cnbc.com/2015/09/21/bullard-vs-cramer-on-fed-impact-on-stock-market.html | Bullard vs Cramer on Fed impact on stock market | Bullard vs Cramer on Fed impact on stock market
VIDEO3:3003:30Cramer responds to Fed's Bullard
VIDEO2:3402:34Raise rates? Not now says CramerSquawk Box
VIDEO0:3300:33Fed’s Bullard calls out Jim CramerSquawk Box
VIDEO4:1604:16Fed's easy policy? Go early, go gradual: James BullardSquawk Box
St. Louis Fed President James Bullard called out CNBC's Jim Cramer on Monday over the central bank's influence over the stock market, and Cramer responded by offering an "olive branch" but said he took issue with name-calling.
It started with Bullard, in an interview on CNBC's "Squawk Box," saying: "I've got a message for your friend Jim Cramer. The Fed cannot permanently raise stock prices. The idea that the Fed is going one way or the other, and this is what's driving the stock market, is not true. He's one of the great people at looking at businesses, how good is this business, what's the profitability of the business, what's this thing worth? And to have him cheerleading for lower rates 24-hours a day is, I think, unsavory."
Bullard said it's time to increase interest rates, and policymakers should not react to turmoil in financial markets.
The Federal Reserve's decision to leave rates unchanged last week was a "close call," he added.
Read MoreAltman: Government shutdown probable—here's why
Cramer responded later on CNBC, saying he's offering an olive branch rather than getting mad. "Other than the 'unsavory' comment, typically I like to have combat that does not involve any sort of ad hominem attack."
"I'm taking [the] Janet Yellen position, which is also 'unsavory,' I guess," Cramer said. "Am I 'cheerleading for higher prices'? I've been pretty negative on the market. I cheerlead that Main Street needs to be on firm footing."
He insisted the time will come for a rate hike, just not now "when China is not teetering, when Europe is on firmer ground."
"I find our economy took a step down. Employment is to our economy as the Chinese stock market is to China. They're not as relevant as they used to be because the jobs we're creating are not the kind of jobs ... the president would favor or I think all of us would favor," he said. "I'm [also] worried about deflation."
"I come back to 1987. I come back to 1997, 1998, 1994," Cramer said. "There were times international [events] really did help bring down the U.S. I think we have to be cognizant of that."
Cramer said he's not too worried about how a rate hike would hit the stock market.
"Main Street will get hurt," Cramer said. "We'll be on the same page one day Mr. Bullard. I just don't think we're on the same page yet."
Bullard outlined his case to Cramer. "We're at zero [percent] policy rates and we're at [a] $4.5 trillion balance sheet when the unemployment rate was right on top of the committee's estimate of the natural rate." He also said inflation is showing signs of picking up.
"We have vanquished all our foes. It's time to get off the emergency settings," Bullard added.
Cramer said he thinks it's really important to hear both sides of the argument. "Unemployment is a thing of the past, but I'm looking at other situations worldwide that I think are a problem. I think housing has a right to go up a little bit. I think that autos may be peaking. I'm concerned about manufacturing in this country. But I recognize that if you're just going to make it employment, then you're going to be right."
"Let's see who's going to be right," he said.
Earlier on CNBC, Bullard said concern in the markets about a slowdown in China are probably overblown. "The impact of China coming directly back to the United States is relatively small," he said. "China is slowing. [But a] hard landing [is] a long shot at this point."
Read More Fed's Bullard: October rate hike possible, but ...
"I would have dissented on this decision," said Bullard, who is not a voting member of the Fed's policy setting committee. The lone dissenting vote on Thursday's decision was Richmond Fed chief Jeffrey Lacker.
Bullard said he wanted to act so the Fed won't get behind the curve and have to raise rates all of a sudden.
VIDEO2:4302:43Chair should hold press conference every meeting: BullardSquawk Box
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4eba59155d0e1bed43ccd01603016d8d | https://www.cnbc.com/2015/09/21/business-insider-could-be-bought-by-axel-springer-for-around-560-million.html | Axel Springer Wants to Buy Business Insider for Around $560 Million | Axel Springer Wants to Buy Business Insider for Around $560 Million
Mathias Doepfner, chief executive officer of Axel Springer.Krisztian Bocsi | Bloomberg | Getty Images
German publishing giant Axel Springer is closing in on a deal to buy Business Insider, in a deal that would value the Web publisher at around $560 million.
Sources familiar with the two companies think a transaction could close within weeks.
In January, Axel Springer bought a minority stake in Business Insider, via a $25 million funding round that valued the company, founded by former Wall Street analyst Henry Blodget, at around $200 million. This new deal pegs Business Insider's value at around 500 million euros, sources say.
Last week, German Manager Magazin reported that Axel Springer was looking to buy a controlling stake in Business Insider. But people familiar with the transaction say that the plan is for a full acquisition. Blodget declined to comment, as did a rep for Axel Springer.
(Disclosure: If the Axel Springer/Business Insider deal goes through, it should be good news for me. I used to work for Blodget at Silicon Alley Insider, the predecessor to Business Insider, and I own shares in the company.)
Business Insider hasn't disclosed its revenues recently. In 2013, it did around $20 million. In January, when Blodget announced his latest funding round, he said revenues had grown 70 percent in 2014, and that the company was "solidly profitable" in the second half of the year.
VIDEO1:5101:51What ad-blocking software means for digital mediaInternet
A few months later, Business Insider COO Julie Hansen said the company wasn't profitable, because it was plowing resources into expansion. It has recently launched a U.K. edition as well as TechInsider, a site dedicated to "tech, science, innovation, and culture," as well as Insider, a publishing project that aims to push most of its content to other platforms like Facebook and Twitter.
In the last few years, a flurry of investors have placed increasingly big bets on digital publishers, in the hopes they have figured out how to find — and make money from — young audiences that are abandoning traditional media like newspapers and television. This summer, for instance, Comcast's NBCUniversal put $200 million into BuzzFeed and another $200 million into Vox Media, which owns this site. Those investments valued those companies at $1.5 billion and around $1 billion respectively.
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But transactions where someone shells out big money to actually buy a digital publisher are less common. Up until now, the biggest one in this era of was AOL's $315 million acquisition of the Huffington Post in 2011.*
Berlin-based Axel Springer is best-known in Europe as the owner of newspapers Die Welt and Bild. Earlier this year it tried to buy the Financial Times from Pearson but lost the deal at the last second to Japan's Nikkei. Axel Springer has partnered with Politico on a European version of the Washington politics site, and has invested in digital publisher Ozy.
Read More
Axel Springer CEO Mathias Doepfner has been public about his interest in making other digital investments, but until now industry observers have been skeptical that the company was serious about making a substantial bet.
Business Insider has raised $57 million since 2007.
*If you expand the category to digital video networks, the price tags get higher. Disney will likely end up paying around $700 million for Maker Studios, which it bought last year; last year Amazon also paid around $1 billion for Twitch, the site where people watch other people play video games.
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561f51504b2d0da4f487f3beaa97262d | https://www.cnbc.com/2015/09/21/can-carly-overcome-the-romney-problem-on-her-hp-record.html | Can Carly overcome the Romney problem on her HP record? | Can Carly overcome the Romney problem on her HP record?
Republican presidential candidate Carly Fiorina take part in the presidential debates at the Reagan Library on September 16, 2015 in Simi Valley, California.Getty Images
Carly Fiorina's strong debate performance launched her close to the top of the most recent GOP primary poll. But her tenure as CEO of Hewlett-Packard suggests she is not likely to stay there.
Fiorina came to the debate prepared to defend that record, arguing that she "doubled the size of the company, we quadrupled its topline growth rate, we quadrupled its cash flow, we tripled its rate of innovation."
These were clever and crisply delivered talking points for a debate audience not likely to drill down into the details of what they meant. But as Josh Barro and others have noted, the top line is not what matters. It's the bottom line that counts and by that measure Fiorina's decision at HP to buy Compaq, a dying computer maker, was a complete disaster that crushed the combined company's stock and produced virtually no profit.
Who won the GOP's debate? Hint: The one in the dress
Fiorina also went after one of her biggest critics—Jeffrey Sonnenfeld—in the debate after Donald Trump cited the Yale management professor's work criticizing the former HP CEO. Fiorina dismissed Sonnenfeld as a "well-known Clintonite."
The problem is that Sonnenfeld, who fired back in an essay for Politico, has the facts on his side: "In the five years that Fiorina was at Hewlett Packard, the company lost over half its value," Sonnenfeld wrote. "During Fiorina's tenure, thanks to the Compaq deal, profits fell, employees were laid off and value plummeted. Fiorina was paid over $100 million for this accomplishment."
The only big stock gain under Fiorina's tenure was the 7 percent boost after she was fired by a unanimous board vote.
All of these facts helped sink Fiorina's attempt to defeat Sen. Barbara Boxer, D-Calif., in 2010, a terrible year overall for Democrats. Boxer wound up crushing Fiorina 52.1 percent to 42.1 percent after the incumbent savaged Fiorina's corporate record of layoffs and HP's sinking share price.
Should Fiorina sustain her position in Republican polls, rival candidates will have a field day with that record, making the case that the last thing the GOP wants to do is nominate another Mitt Romney, whom Democrats successfully eviscerated for banking tens of millions of dollars while slashing jobs as a Bain Capital executive.
Fiorina has also rightly taken heavy criticism in recent days for describing a gruesome scene in a Planned Parenthood video that people who have seen all the videos say does not exist. Her answer on abortion and the Planned Parenthood videos thrilled conservatives. But if it does turn out she made the whole thing up, it's going to hurt her over the long term.
Republican voters are clearly hungry for a nonpolitician who will hammer President Barack Obama and current Democratic front-runner Hillary Clinton in savage and entertaining ways. And as Trump's policy-free "Make America Great Again" shtick fades and his lack of depth on issues becomes clearer with every debate, Fiorina is quickly sliding into the top spot. She easily vaulted over retired neurosurgeon Ben Carson, who seems to do well in retail politics but comes across in debates as extremely mild-mannered and reasonable, not a great approach in the reality-TV cauldron of the 2016 GOP presidential race.
Chris Christie: Carly 'rude' & Trump leads—for now
On closer inspection, many of Fiorina's other answers at the CNN debate, while delivered with absolute confidence and precision, fall apart upon closer inspection, as Vox's Ezra Klein noted. There is also the matter of Fiorina lacking much of a campaign infrastructure or a core of major donors. The former CEO is working frantically to address these problems. But turning a strong debate performance into a winning campaign, especially given the tough sales job she faces over her corporate record, is going to be a challenge that Fiorina likely won't be able to overcome.
All of this suggests that the GOP nominee will still likely emerge from the field of more traditional politicians struggling to ride out the early wave of desire for a different kind of candidate. It does not seem likely to be Wisconsin Gov. Scott Walker, who is now languishing near zero in the polls. Former Florida Gov. Jeb Bush has the money to stay in the race until the end and his donors continue to believe he will be the last man standing.
But if Republicans are looking for a fresher face who has also performed extraordinarily well at both debates, they may wind up settling on Marco Rubio. The Florida Senator came in fourth in the post-debate CNN poll with 11 percent, trailing just Trump, Fiorina and Carson. His debate answers were also detailed, crisp and delivered without the same easily exploited errors that riddled Fiorina's responses. Rubio also has a strong donor base and a deep pocketed backer in billionaire auto dealer Norman Braman capable of pumping millions into the Florida senator's super PAC.
There is still a long way to go before GOP voters settle on a nominee—and a chance it could go all the way to the convention. But so far, 2016 looks a lot like 2012, when primary voters flirted with a number of unlikely candidates (Michele Bachmann, Herman Cain, Newt Gingrich) before doing what they usually do and nominating the establishment choice.
This time could certainly be different, but history at least usually rhymes. And Fiorina's biggest selling point—her record as a business executive—could easily wind up being her undoing.
—Ben White is Politico's chief economic correspondent and a CNBC contributor. He also authors the daily tip sheet Politico Morning Money [politico.com/morningmoney]. Follow him on Twitter @morningmoneyben.
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86e56df2a2a51a71bd5a9f79ab5b194d | https://www.cnbc.com/2015/09/21/chinas-banking-sector-is-as-risky-as-brazils-sp.html | China's banking sector is as risky as Brazil's: S&P | China's banking sector is as risky as Brazil's: S&P
Getty Images
The creditworthiness of China's financial institutions is likely to get worse, ratings agency Standard & Poor's warns, adding that the country's property market is exposed to a "correction".
On Monday, the agency revised its view of the economic risk trend for China's banking sector to negative from stable, highlighting that changing economic conditions could have an effect on Chinese banks.
UK pushes to be ‘China’s best partner’ despite fears
"Credit risks in the Chinese economy may continue to worsen, as indicated by rapidly rising credit losses and still-significant credit growth amid China's economic slowdown," a new report said.
"We believe there is a one-in-three chance that the banking sector's credit exposures to non-financial and non-public sectors in China could surpass 150 percent of the country's GDP (gross domestic product) in the next two years."
The risk associated China's banking sector is now on a par with countries like Bermuda, Brazil, Colombia, and India, the agency said.
It also noted that the downturn risk for China's property market remains "high" despite signs of stabilization in top-tier cities and stressed that it believed China's property market remains exposed to a "correction."
China volatility cements HK's finance hub crown
This downbeat analysis from Standard & Poor's comes hot on the heels of a severe depreciation for Chinese stock markets which have helped to roil global sentiment. Growth concerns for the world's second-largest economy even played a part in the decision from the U.S. Federal Reserve last week to hold off on hiking interest rates for the first time in seven years.
China's economy has been on a tear for the last decade with a debt-fueled boom helping it to post double-digit GDP figures. However, a focus on a more consumer-driven economy and a tightening in some rules and regulations has led many economists to believe that it might be in for a "hard landing."
New York-based CBB International - which published its third-quarter Beige Book on China Monday - tried to play down the idea that the economy is collapsing. It stated that current market perceptions of China were "thoroughly divorced" from the reality.
Stuart Oakley, managing director of global emerging markets at Nomura, has a similar view and told CNBC Monday that China is more stable than other emerging markets.
"China is a country that, yes it's debt levels have gone up palpably, but it's all domestic debt and it can all be funded internally. You've got $20 trillion worth of a deposit base there. You have an autocratic political regime that has monetary and fiscal levers to deal with any problems that come its way," he said.
"It's my bet that this economy and its asset markets will outperform everything in the emerging market universe over the next few years."
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4e153d45cbc294a90e9b6164f9e757ea | https://www.cnbc.com/2015/09/21/clinton-calls-drug-price-hike-outrageous-vows-plan.html | Clinton calls drug price hike 'outrageous,' vows plan | Clinton calls drug price hike 'outrageous,' vows plan
VIDEO5:5705:57Turing CEO: Drug priced where we could make 'comfortable profit'Power Lunch
Democratic presidential contender Hillary Clinton on Monday blasted a 5,500-percent overnight hike in the price of a drug used to treat malaria and dangerous parasitic disease, calling it "price gouging" and promising to announce a plan Tuesday to tackle that and other high prescription drug costs.
The former secretary of state's stance about the sky-high new price of the medication known as Daraprim, which was announced via Twitter, worried critics of drug-price controls, who warned that such "anti-industry populism" could badly hurt the pharmaceutical industry—and stock prices.
Clinton had already said on Sunday's edition of CBS's "Face the Nation" show that "I'm going to address" drug prices, "starting with how we're going to try to control the cost of skyrocketing prescription drugs."
Biotech falls on Clinton 'price gouging' comments
"It's something I hear about everywhere I go," Clinton said.
Biotech stocks reacted to Hillary's tweet Monday, dropping by more than 4 percent industrywide.
Later in the day, a Capitol Hill source said that Rep. Elijah Cummings, D-Md., is planning to request information about Daraprim's "astronomical price increase" from drug's new owner, Turing Pharmaceuticals. Cummings has been conducting an investigation of recent drug price increases.
Tweet
Sanford Bernstein analyst Ronny Gal said that if Clinton wins the White House, "I would say" that drug prices will take a hit.
"The entire argument that the government will begin to behave [as controller of prescription prices] is something the drug industry has been fighting tooth and nail," Gal said. "If that actually becomes a policy and looks like it's coming to a chance of passing you'll see drug company valuations cut 20 percent across the board."
Before Clinton tweeted her reaction to the news about Daraprim, Dr. Scott Gottlieb of the American Enterprise Institute said that a New York Times story about the drug's price hike comes a time where there already was "a lot of negative sentiment" about drug prices, and that "the industry is vulnerable" to those public feelings.
Earlier this month, the Kaiser Family Foundation said a survey had found that 72 percent of the public considered drug prices unreasonable. And Clinton's leading challenger for the Democratic presidential nomination, Sen. Bernie Sanders of Vermont, has already introduced a plan to deal with drug prices, which includes allowing Medicare to negotiate prices with pharmaceutical companies and allowing people to import drugs from Canada, where medication is less expensive.
Gottlieb said "anecdotes like" the huge price increase of Daraprim "hurt and can help drive bad legislation, and Clinton is sure to propose a basket of Obamacare 'fixes' this week that will include populist calls for drug price controls."
"The problem is that there is more anti-industry populism on both sides of the political divide now. I still don't think the votes are there to get anything through the House [of Representative] but the industry is very vulnerable to things like Medicaid 'best price,' " Gottlieb said. Medicaid's best price program is a rebate scheme that helps lower federal and state costs for covering prescription drug purchases for Medicaid enrollees.
"Ultimately anything that would extend drug price controls would have to come as a pay for on broader legislation that gave Republicans something in return. But I do think the drug industry should be much more worried than they are that they could be on the receiving end of adverse legislation."
Hillary ClintonGetty Images
In an investor's note, analyst Michael Yee of RBC Capital Markets, wrote that "Hillary and health-care pricing will get noisy ... be ready."
"We warn investors to prepare for this drug pricing volatility and noise as we go into 2016 and we have said that drug pricing noise could turn up in 2016 due to the election year," Yee wrote.
"While we are clear we don't think anything material would likely get through legislation, given it is still very early, this has been discussed before and isn't new, and Republicans control Congress, it is still a risk factor to 'money flow' in health care that we need to watch," Yee wrote.
Yee said that Clinton's imminent drug pricing plan, coupled with a New York Times article about Daraprim, along with other factors, has created "a perfect story" facing drug stocks.
The New York Times reported Sunday specialists in infectious diseases were "protesting" that Daraprim, a 62-year-old drug also known by its generic name, pyrimethamine, had had its price raised from $13.50 per tablet to $750" immediately after the medication was acquired in August by the start-up Turing Pharmaceuticals. Daraprim, which is often used to treat the parasitic infection known as toxoplasmosis, had sold for as little as $1 or less in recent years.
In a letter to Turing, the Infectious Diseases Society of America asked the company to drop the price of Daraprim, saying there is "no justification for an increase of this magnitude for a medication approved by the U.S. Food and Drug Administration in 1953."
"Under the current pricing structure, it is estimated that the annual cost of treatment for toxoplasmosis, for the pyrimethamine component alone, will be $336,000 for patients who weigh less than 60 kilograms and $634,500 for patients who weigh more than 60 kilograms. This cost is unjustifiable for the medically vulnerable patient population in need of this medication and unsustainable for the health-care system," the IDSA wrote.
More Americans cut spending to pay for prescription drugs
The organization also said it was concerned that the price of the drug would preclude hospitals from stockpiling in anticipation of need.
Martin Shkreli, the founder and CEO of Turing, told the Times that the money it was making on Daraprim would be used to develop a better medication for toxoplasmosis, with less toxicity than Daraprim.
"This isn't the greedy drug company trying to gouge patients, it is us trying to stay in business," Shkreli told the Times. On Monday, he said that that about half the supply of Daraprim is sold for a dollar per pill, and that the company would not deny access to the drug based on need.
Can this plan help control spiraling drug prices?
Shkreli, during an appearance on CNBC's Power Lunch, said "No," when asked if he would reduce the price of the drug in the face of calls to do so.
"We feel this is an appropriate price," said Shkreli. He later adding that when Turing purchased Daraprim "we definitely planned on raising the price, that's for sure."
He said that before the purchase, it was "pretty clear than Daraprim was not priced appropriately."
"We took it to a place where we can make a comfortable profit," Shkreli said.
He also argued that the drug is not excessively priced when compared to other specialty medications such as the hepatitis C drug Sovaldi, which costs $84,000 for a 12-week regimen.
"We're certainly not the first company in the country to raise drug prices," Shkreli said. "There have been much larger price increases by much large companies."
But Dr. Carlos del Rio, an AIDS expert who is a professor at Emory University's School of Medicine, disputed Shkreli's claim that there is need for a new drug to treat toxoplasmosis.
"This is a drug that has no major side effects ... it's usually very well tolerated," del Rio said. "It's not a patient population that is clamoring for a better drug."
Del Rio said Daraprim's price hike has made it "hard for hospitals and clinics to get access to the drug because their budgets were not prepared" for the increase.
He also said it is another example of a drug whose price should be low "defying the gravity of a free market."
"This is something that really Congress has to look into, and politicians have to look into," del Rio said.
The price increase of Daraprim is "is clearly hurting our patients and increasing the price that the health-care system has to pay," he said.
Del Rio said he would like, as Sanders has suggested, to allow consumers to important drugs from other countries. He said Daraprim is available in India "for a few cents," and sells in Mexico for "about 50 cents a tablet."
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0507aec9c7bc5c4087849f39d57571a5 | https://www.cnbc.com/2015/09/21/cramer-i-was-wrong-run-far-away-from-this-stock.html | Now, look, I got La Quinta wrong. Mea culpa. I should have been more skeptical and less willing to believe the CEOs exuberant bullishnessJim Cramer
VIDEO7:0607:06When a stock superstar goes sourMad Money with Jim Cramer
Jim Cramer was shocked Thursday when La Quinta, a company that he has liked for a long time, was hit with disaster— ultimately causing Cramer to throw his entire bull thesis for the stock out the window.
La Quinta Holdings is the select-service hotel chain with about 870 locations. The "Mad Money" host has recommended the stock multiple times, largely because of the positive commentary from the company's long-time CEO, Wayne Goldberg.
That was until last Thursday, when Cramer was hit with two jarring surprises from the company.
First, the CEO announced he was stepping down effective immediately. La Quinta did not cite a real reason for the exit; Goldberg simply said he had fulfilled his goals and it was a good time to look for new opportunities.
"But if that was the whole story, why not give investors a heads up and announce he's retiring in a few months?" Cramer asked.
This move was especially disturbing to Cramer, as Goldberg had been the president and CEO of La Quinta since 2006. He took the company public in 2014, and then suddenly resigns with no warning, pretty much overnight?
That was a major red flag to Cramer, as it is never a good sign for a longtime CEO to step down immediately for no particular reason.
The second blow came when La Quinta cut its full-year financial guidance for the second time in two months. It had a vicious downward revision of its revenue per available room, guiding to a range of 3.5 to 4.5 percent from 6 to 7 percent.
On top of that, the company cut its earnings before interest, taxes, depreciation and amortization forecast to a range of $393 million to $400 million, down from $398 million to $404 million. It blamed weaker-than-anticipated hotel demand during August and September.
The very next day, La Quinta dropped 15 percent, down to its April 2014 IPO price of $17.
And while La Quinta approved a $100 million accelerated buyback program, Cramer thinks this move is just plain desperate. He thinks the company is flailing and looking for a way to prop up its stock price.
"At this point, I have to tell you that I think it's not too late to sell La Quinta. In fact, if you own this stock my recommendation is that you run—don't walk—away from it," Cramer said. (Tweet this)
Read more from Mad Money with Jim Cramer
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One of the main reasons why Cramer liked this stock so much is because La Quinta's CEO was so bullish on his appearances on "Mad Money." Goldberg's sudden exit from the company is a gamechanger for Cramer.
"Now, look, I got La Quinta wrong. Mea culpa. I should have been more skeptical and less willing to believe the CEO's exuberant bullishness," Cramer said. (Tweet this)
So, when the facts change, you must change your mind. And the facts have changed with La Quinta. When this kind of disaster strikes, Cramer says investors must be willing to admit that they got it wrong and walk away. Don't try to convince yourself that the pullback is a buying opportunity.
Questions for Cramer? Call Cramer: 1-800-743-CNBC
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Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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9be25f993cf0f35f79d5a6a4bdf9259f | https://www.cnbc.com/2015/09/21/cramer-petrobras-is-the-worlds-biggest-problem.html | Cramer: Petrobras is the ‘world’s biggest problem’ | Cramer: Petrobras is the ‘world’s biggest problem’
VIDEO3:2803:28Cramer's Mad Dash: Petrobras' debt
Investors focusing only on U.S. stocks and the Federal Reserve may be missing the broader picture regarding financial markets, especially what's going on with Brazil's Petrobras, CNBC's Jim Cramer said Monday.
He noted that the semipublic oil behemoth's 10-year bonds were yielding 10.5 percent, a level which he said is "unsustainable."
"This is the world's No. 1 problem ... right now because it has so much debt and people aren't talking about it," Cramer said on "Squawk on the Street."
Petrobras gas station in BrazilJustin Solomon | CNBC
Petrobras has more than $100 billion in debt and a further downturn in the company could lead to widespread economic problems, given Brazil is one of the largest oil producers in the world, Cramer added.
Read MorePetrobras loses $9B in Q4 in wake of scandal
"If you only think about the U.S., you might miss a larger picture," Cramer added. "I remember Russia. I didn't think it was going to be of great impact. There was a big Goldman bond deal, and next thing I know, I'm on TV talking about Russia, and I felt very Ill-equipped. I don't want to be ill-equipped when talking about Brazil and Petrobras," he said.
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22cf5a8a056192142b2d49ce7f5aaea4 | https://www.cnbc.com/2015/09/21/cramer-remix-the-right-time-to-raise-rates.html | VIDEO1:2901:29Cramer: Detecting the right time to raise ratesCramer Remix
Things got heated on Monday when St. Louis Fed President James Bullard called out Jim Cramer, stating that Cramer's "cheerleading" for lower rates is "unsavory."
"Unsavory, wow! I have my hands full just trying to be sweet, now I have to be savory, too?" the "Mad Money" host said.
Cramer explained that has been hard on Bullard this year, because he has wanted to raise the federal funds rate for years now, even as the economy has been too weak to do so. He also said he has not been a cheerleader for this market, as he hasn't liked the market for ages.
Rather, Cramer said he is a cheerleader for regular working Americans and higher interest rates would hurt Main Street, not Wall Street. Additionally, Cramer is not against a rate hike. On Friday, Cramer stated that as along as China is not teetering and Europe is on firmer footing, then he will be in favor of the Fed tightening.
"Right now, though, I am seeing deflation all over the place, including most of the commodity complex, and without minimum wage hikes at the state and local level, I think wages in this country would not just be stagnating, they would be declining," Cramer said.
Read MoreBullard vs Cramer on Fed impact on stock market
As long as stocks don't act rationally, as long as the inputs produce the wrong outputs, I'm going to urge you to have one foot out the door at all timesJim Cramer
A trader works on the floor of the New York Stock Exchange.Getty Images
In fact, Cramer did not trust the market rally on Monday. Somehow, all of the indicators that would normally be bad news for the averages ended up being good news, which was a red flag to Cramer that this rally is not sustainable.
Monday's market activity prompted interest rates and oil prices to rise, the dollar gained strength versus the , financial stocks rallied and biotech stocks were crushed.
"How did these things suddenly become good? Because this market is trying to find a base, trying to find its footing where it doesn't go down every day and where segments that have been hit hard can attempt to rally," the "Mad Money" host explained.
So what does all of this irrationality in the market mean?
It is making investors uncertain and driving people away. In fact, when the market makes no sense to a guy like Cramer, it makes him want to sell into strength, not buy, he said.
"As long as stocks don't act rationally, as long as the inputs produce the wrong outputs, I'm going to urge you to have one foot out the door at all times," Cramer said. (Tweet This)
Just as the decline on Friday proved to be unsustainable and based on nothing, Cramer warned that Monday's advance will most likely be unsustainable for the same reasons.
Read More Cramer's warning: This market is unsafe, unstable
One example of an unsafe stock was on Thursday when La Quinta, a company that Cramer has liked for a long time, was hit with disaster—ultimately causing Cramer to throw his entire bull thesis for the stock out the window.
La Quinta Holdings is the select-service hotel chain with about 870 locations. The "Mad Money" host has recommended the stock multiple times, largely because of the positive commentary from the company's long-time CEO, Wayne Goldberg.
That was until last Thursday, when Cramer was hit with two jarring surprises from the company.
First, the CEO announced he was stepping down effective immediately. La Quinta did not cite a real reason for the exit; Goldberg simply said he had fulfilled his goals and it was a good time to look for new opportunities.
The second blow came when La Quinta cut its full-year financial guidance for the second time in two months. It had a vicious downward revision of its revenue per available room, guiding to a range of 3.5 to 4.5 percent from 6 to 7 percent.
On top of that, the company cut its earnings before interest, taxes, depreciation and amortization forecast to a range of $393 million to $400 million, down from $398 million to $404 million. It blamed weaker-than-anticipated hotel demand during August and September.
"At this point, I have to tell you that I think it's not too late to sell La Quinta. In fact, if you own this stock my recommendation is that you run—don't walk—away from it," Cramer said. (Tweet this)
Read More Cramer: I was wrong—run far away from this stock
Brent Saunders, CEO of Allergan.Adam Jeffery | CNBC
Cramer reminded investors on Monday that when high-quality stocks go lower, they get cheaper. That is exactly how he feels about Allergan, the acquisitive drug company formerly known as Actavis.
Allergan's stock has been slammed recently, but Cramer thinks the story behind this company could be even better today than it was before. The FDA recently approved Allergan's new anti-psychotic drug, Vrylar, and the company has lined up even more acquisitions to grow its business, including the $300 million AqueSys deal earlier in the month.
Biotech stocks were hit hard on Monday when a tweet from presidential candidate Hillary Clinton said that the price gouging by drug companies should be stopped, and would lay out a plan to stop it. If Clinton becomes president, should drug companies like Allergan be worried?
To find out, Cramer spoke with Allergan CEO Brent Saunders. The CEO said, "All of our intelligence says that it is going to be very hard for Hillary, or any other candidate, to really have a profound impact on drug pricing. That being said, we have to take this very seriously because it creates a lot of pressure on the system." (Tweet this)
Read More Allergan CEO fires back on Hillary Clinton tweet
The price of gold has also been headed downhill for years now and is now trading below where it was when the financial crisis hit the U.S. And considering the Fed's recent decision not to raise rates and the weakness in emerging market countries, Cramer thinks it could be pretty hard to make the case that gold is about to bottom.
However, the "Mad Money" host has always been a believer that some gold exposure in a portfolio can act as an insurance policy. Gold tends to go up in moments of inflation and economic turmoil, while stock prices go down. And even though inflation seems like a distant worry right now, Cramer still thinks it is a good idea for investors to diversify.
That is why he spoke with Mark Bristow, CEO of Randgold Resources, a company Cramer considers to be the best-run gold miner in the business. Randgold has operations in western and central sub-Saharan Africa, and despite declining gold prices, the company managed to deliver a solid quarter last month.
"There's every indication that the supply of gold is going to shrink, which will tighten up the market… And that will support the gold price and then any other impact, you will drive that gold price up; so you know I am really positive about the gold price," Bristow said.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
Twitter: "I like Twitter, my charitable trust owns it. I think at this point the stock has come down so much, I think that if it went down 4 or 5 more points there would be a lot of companies wanting to buy it. But I don't know who the CEO is going to be."
Lululemon: "I am in agreement with Morgan Stanley. I thought that the selloff was overdone and it happened while I was out in California. I took a look at the stock this weekend and was surprised that it was down so low. So were they, and I think they are right."
Read MoreLightning Round: I'm surprised this is so low
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14370f2e7a3b514cb33c4950c100f9a6 | https://www.cnbc.com/2015/09/21/dollar-near-2-week-high-supported-by-2015-fed-hike-view.html | Dollar extends gains against euro on 2015 Fed rate hike bets | Dollar extends gains against euro on 2015 Fed rate hike bets
Getty Images
The U.S. dollar hit a more than two-week high against the euro on Tuesday on continued belief that the Federal Reserve would hike rates this year while the European Central Bank could ease further.
The euro hit $1.11130, its lowest against the greenback since Sept. 4, following Fed officials' recent comments indicating that the U.S. central bank was still on track to raise interest rates this year for the first time since 2006.
Analysts said traders expect the ECB, meanwhile, to ease policy further. One- and three-month euro/dollar risk reversals , which measure demand for options on a currency falling or rising, show their biggest bias in over seven weeks for a weaker euro.
"The market...is looking forward to December as pretty much a launch date," said Boris Schlossberg, managing director at BK Asset Management in New York, in reference to the Fed's first rate hike.
Rate hikes are expected to boost the dollar by driving investment flows into the United States.
VIDEO1:4801:48Are we on the cusp of a currency war?Worldwide Exchange
The dollar slipped against the Japanese yen, meanwhile, on concerns about global growth. Analysts said traders digested the Fed's Sept. 17 policy statement and comments from Fed Chair Janet Yellen regarding worries about the global economy, which in turn helped the safe-haven yen gain while riskier emerging market currencies fell.
The U.S. dollar hit a record high against Brazil's real of 4.0667 reais, and hit a nearly two-week high against the Mexican peso of 16.9 pesos, before trading at 16.89.
"You've got the Fed warning about global weakness, and then...some (Fed) board members said we need to hike rates," said Joseph Trevisani, chief market strategist at WorldWideMarkets in Woodcliff Lake, New Jersey. "Both things are bad for emerging markets and for the risk play."
ECB President Mario Draghi will speak on Wednesday, while Fed Chair Yellen will speak on Thursday. Analysts said expectations that Draghi would hint at more stimulus kept the euro lower against the dollar.
The euro was last down 0.53 percent against the dollar at $1.1126. The dollar was last down 0.32 percent against the yen at 120.11 yen. The dollar was last up 0.32 percent against the Swiss franc at 0.9751 franc.
Read MoreThe Fed may have just stoked a 'currency war'
The dollar index, which measures the greenback against a basket of six major currencies, was last up 0.41 percent at 96.27. That was just under a nearly two-week high of 96.404.
On Wall Street, the benchmark S&P 500 stock index closed down 1.23 percent.
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19097cf4d87653cae31d742aa9265984 | https://www.cnbc.com/2015/09/21/ed-morse-dont-expect-100-oil-anytime-soon.html | Ed Morse: Don’t expect $100 oil anytime soon | Ed Morse: Don’t expect $100 oil anytime soon
VIDEO2:3402:34Crude rebounds after Friday's drop
It will take a lot for oil prices to trade in the $100-per-barrel neighborhood in the near future, Ed Morse, head of global commodity research at Citigroup, said Monday.
"We'd have to see a reversal in trends in global GDP growth and, more importantly, in global petroleum demand growth," Morse said in a CNBC "Squawk on the Street" interview.
"We've seen the relationship between GDP growth and oil product demand widening considerably. For every 1 percent increase in global GDP, there's less of a percent increase in oil demand. That will weigh heavily on the markets," Morse added.
Crude prices have nearly halved since last year, with West Texas Intermediate oil trading at about $46 a barrel on Monday, while Brent crude traded at about $48.
The booming business of oil tankers
This will be the next spark for a sell-off in oil
WTI in last 12 months
Morse added there are two key factors keeping oil prices down.
"There is so much more oil that can be produced at lower prices, and the world has a big abundance of these new, unconventional oils, particularly shale oil," he said. "[Also], "OPEC countries have a need to produce more and they'll be producing more."
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3bfefa6843d700bb1fccfacd3726eb4c | https://www.cnbc.com/2015/09/21/end-of-iran-sanctions-could-spell-boon-for-france.html | France heads off to court Iran business | France heads off to court Iran business
VIDEO1:2501:25France out to charm IranNuclear Energy
The cream of French industry and politics are launching a bid to forge business links with Iran ahead of the lifting of international sanctions on the country.
A delegation of France's main business lobby group, Medef, comprising about 130 firms, including top companies such as Total and Peugeot, arrived in Tehran Monday with the aim of encouraging future trade deals.
The delegation was also be accompanied by trade and agriculture ministers, making it the first visit to Iran by a foreign trade minister or a minister responsible for a French economic sector for 12 years, according to the French foreign ministry.
Sanctions imposed on Iran for its alleged nuclear arms development are expected to be lifted after a deal between the country and global powers that will see Iran allow international monitors to ensure its nuclear program is peaceful.
Tehran, IranTravel Ink | Gallo Images | Getty Images
Despite opposition to the deal from U.S. Republicans and Israel, the sanctions could be lifted by next spring if Iran meets its side of the deal. If Iran becomes open to business, foreign firms prevented from investing or trading with the country during the embargo would be allowed back in to strengthen trade ties.
The trip is well-timed ahead of a visit by Iranian President Hassan Rouhani to Paris in November. There are hopes that Medef's trip can restore business relations between Iran and France – a country which took a tough line on Iran during nuclear discussions.
During the talks, French Foreign Minister Laurent Fabius said the tough stance wouldn't hurt trade but business leaders have expressed concerns that trade relations could have been damaged.
"The very tough stance has created some aggressive thinking vis-à-vis France and everything that represents France, like our company," Carlos Tavares, the chief executive of PSA Peugeot Citroen, told the Financial Times newspaper.
Read More Iran may soon be open for business, but not to US firms
Meanwhile, French oil giant Total, which operated in Iran until it was pressured to stop all oil production there in 2010, looks set to develop Iranian oil fields again. In July, Iranian Oil Minister Bijan Zanganeh said: "Total was active in developing Iranian oil projects for more than 20 years (before sanctions)... the door is again open for this company's activities in developing oil fields."
Announcing the trip to Tehran earlier this month, Thibault de Silguy, vice-president of Medef, said France needed to restore trade relations so that it would not lose out to Asian and other European countries once sanctions are eased.
"We have fallen behind, so now we have to make up lost ground," Medef Vice President Thibault de Silguy told reporters earlier this month, saying the visit was "very important for us."
Among the delegation will also be small- and medium-sized enterprises with sectors as wide-ranging as agriculture, finance, luxury goods, pharmaceuticals, construction and transport, according to Radio France Internationale.
Read More Iran got a nuke deal—so why is its market falling?
According to European Commission statistics for 2014, the export value of goods from France to Iran totally almost 453 million euros ($510.5 million), whereas the import value from Iran was worth just over 29 million euros.
A decade previously, however, and French exports to the Islamic republic peaked, valued at 2.3 billion euros, showing the steep decline in exports decreased and why France might be so keen to restore those relations.
France could well do with an economic boost amid a sluggish growth environment back home. On Friday, Moody's ratings agency lowered France's sovereign credit rating by one notch to Aa2 and changed its outlook from "negative" to "stable."
It made the change due to the "the continuing weakness in France's medium-term growth outlook, which Moody's expects will extend through the remainder of this decade," it said in a statement, as well as "the challenges that low growth, coupled with institutional and political constraints, poses for the material reduction in the government's high debt burden over the remainder of this decade."
- By CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt. Follow us on Twitter: @CNBCWorld
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3637ff8bca19ec2feedd8bbc08d5e12d | https://www.cnbc.com/2015/09/21/european.html | VW, RSA hammered as Europe ends higher | VW, RSA hammered as Europe ends higher
VIDEO0:2500:25VW, RSA hammered as Europe ends higher
European equities bounced back Monday, finishing higher despite an uninspiring lead from Asia and key European stocks being crushed throughout the day's session.
The pan-European Stoxx 600 index closed up 1.1 percent higher, shrugging off last week, after the Federal Reserve kept interest rates on hold.
London's FTSE 100 index ended 0.1 percent higher on Monday, while its European counterpart, the French CAC jumped up 1.1 percent.
Despite earlier volatility, Germany's DAX edged up in late trade, closing 0.3 percent higher, shaking off woes over Volkswagen and fears of the index hitting bear market territory.
Global markets are still reeling from the Fed's decision last Thursday not to raise interest rates. The decision prompted fresh concerns about global growth. U.S. stocks traded higher Monday as Wall Street tried to shake off last week's rate hike decision amid comments from several Federal Reserve speakers.
In individual stocks news, shares of British insurer RSA sank 20.8 percent by the close, after Zurich Insurance said it was ditching its takeover bid for the company. Zurich shares wobbled throughout the session, closing down 2.8 percent.
Meanwhile, shares of German-listed carmaker Volkswagen (VW) were off over 18.6 percent after news that the company could be fined up to 18 billion euros ($20.3 billion) by U.S. authorities. They allege the company's software for some diesel models misled buyers about emissions. The company's Chief Executive, Martin Winterkorn, issued an apology on Sunday and called for an external investigation.
Volkswagen stock drops 20% on US diesel recall probe
Consequently, other stocks in the auto sector were crushed by the news, with shares in Porsche (owned by VW) sinking 17.2 percent, France's Renault down 3.2 percent, and Daimler pared losses throughout trade, closing down 1.4 percent.
Dialog Semiconductor also saw its shares slump 18.9 percent after the microchips maker agreed to buy U.S. peer, Atmel for $4.6 billion.
In the green, oil prices were posting gains, after data revealed U.S. drilling had slowed. Brent crude was trading up at $48.36 per barrel, while U.S. light crude was at $46.09. This gave oil stocks a boost, with SBM Offshore, Neste and Royal Dutch Shell all finishing in positive territory.
VIDEO3:2603:26Stability for Greece is top priority: Fmr MinWorldwide Exchange
Aside from the Fed, Greece is back on the menu for discussion. Alexis Tsipras is once again Greek prime minister after a decisive victory in a snap election in Greece on Sunday. He will return to power in a coalition government with the right-wing Independent Greeks.
Speaking to cheering crowds in a central Athens square, Tspiras promised a period of stability and said he "felt vindicated" after quitting in August to start on a clean slate with voters, Reuters reported. There are hopes his clear win will pave the way for reforms that are a pre-requisite of the country's third 85 billion euro ($96.2 billion) bailout.
The Athens stock exchange ended the day 0.6 percent lower.
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5b7fd82483d4ca2d6dba500b513fb9d8 | https://www.cnbc.com/2015/09/21/feds-williams-says-decision-not-to-raise-rates-was-a-close-call.html | Fed's Williams says decision not to raise rates was a 'close call' | Fed's Williams says decision not to raise rates was a 'close call'
San Francisco Federal Reserve President John Williams speaks during an interview in New York.Getty Images
The Federal Reserve's decision to hold interest rates steady last week rather than raise them was a close call, San Francisco Fed President John Williams said on Sunday.
Williams said the U.S. job market was nearly at full strength but increased concern over the global economy and financial system led policymakers on Thursday to hold off on interest rate hikes.
Read MoreCase for rate hike 'quite strong': Fed's Bullard
"In my mind it was a close call," he told Fox Sunday Morning Futures.
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8a2118de5676e6f40ac9a2c85982c5af | https://www.cnbc.com/2015/09/21/financial-crisis-lingers-for-boomers-genration-x.html | Financial crisis lingers for boomers, Generation X | Financial crisis lingers for boomers, Generation X
VIDEO1:2001:203 mistakes that could ruin your retirementRetirement
VIDEO1:1601:16Three easy ways to save for retirementRetirement
VIDEO1:2101:21When To Convert a Traditional IRA to RothIRA
Stock prices have nearly tripled since the depths of the financial crisis, and the unemployment rate has been almost halved. So you might think, nearly seven years on, that the stress of the financial crisis is behind us.
Not so fast.
Two-thirds of baby boomers and Generation X—67 percent, to be precise—report still feeling the effects of the financial crisis in their lives every day, from housing to the workplace to saving for retirement. (Tweet This)
Worse, one in five boomers and Gen Xers is experiencing post-crash skepticism, according to Allianz Life, which commissioned a study of the two cohorts. These people experienced at least six of 13 effects of the financial crisis, which include seeing their 401(k) lose value, losing their job and watching their house's value plummet. And it is still having a dramatic effect on their behavior.
These post-crash skeptics are far more cautious in everything from investing to homebuying, and they have been taking on more debt than the survey participants overall. In addition, 41 percent of them said they had stopped saving for retirement in the wake of the financial crisis, more than three times the average rate for boomers and Gen Xers generally.
"It kind of paralyzes them," said Katie Libbe, head of consumer insights at Allianz Life. "They are not behaving rationally. It's kind of like they've got this psychological stuff going on that has profoundly affected them in the past, so they are very, very worried about the future."
Retirement confidence is up, but why?
The survey included 1,000 Gen Xers, defined as people age 35 to 48, and 1,000 boomers aged 49 to 67, all with incomes of at least $30,000.
Many boomers were probably nearing retirement when the financial crisis struck, so with their retirement savings near their peak, boomers may well have had an outsize response to the market's free fall. Sure enough, more than half of the post-crash skeptics were boomers, Libbe said. But the average age of that group was 52, meaning they were 45, probably far from retirement, when the financial crisis hit.
These post-crash skeptics have distinct beliefs about their finances, Libbe said. For one thing, "this group is really distrustful of financial institutions," she said. And whether it is a result of their experiences in the recession or their cautious investing approach, "they really believe that they have to use debt as a survival tool," though in reality it is interfering with their ability to save for the future. Half of the post-crash skeptics said they took on more debt after the crash, compared to 27 percent of Gen Xers and just 19 percent of boomers.
How much do you really need for retirement?
The post-crash skeptics are not the only ones poorly prepared for retirement, however. According to the Employee Benefit Research Institute's 2015 Retirement Confidence Survey, just 22 percent of workers are very confident that they have sufficient savings for a comfortable retirement.
The Government Accountability Office, for its part, analyzed the Federal Reserve's Survey of Consumer Finances and found that roughly half of all households age 55 and over have no retirement savings at all, and many of those have few other financial resources.
Allianz found troubling behaviors among the Gen X respondents generally. They have about 60 percent more mortgage debt and about 82 percent more nonmortgage debt than boomers, but 59 percent say they are comfortable with those levels.
Can a doctored photo save your retirement?
The silver lining, Libbe said, is that the post-crash skeptics seem to be relatively open to receiving financial advice. "They now recognize that if someone could come along who would not judge them—if they could find an advisor who could lead them slowly back into the market, they really like that scenario."
Apart from advisors, Libbe pointed to a few simple steps people can take to repair their finances. For starters, you will stop taking on debt if you start living on a "cash flow" basis, or spending only what you earn. It is also a good idea to take advantage of retirement plan matches and any systematic retirement savings options your employer offers, such as automatic enrollment in a retirement plan. Building an emergency fund is another good idea, Libbe said.
"Sometimes people say, 'I'm never going to be able to retire,' " she said. "That's not a reason not to put money away for savings."
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a3e10254a59fc1136a0a8c0f0e9b2c23 | https://www.cnbc.com/2015/09/21/ges-immelt-no-india-nuclear-investment-unless-laws-changed.html | GE's Immelt rules out India nuclear investment under current law | GE's Immelt rules out India nuclear investment under current law
Getty Images
General Electric will not invest in atomic energy in India until accident liability laws are brought in line with global rules, Chairman Jeff Immelt said on Monday, in a setback for top-level efforts to get U.S. firms to build power stations.
Speaking shortly after a meeting with Prime Minister Narendra Modi, Immelt said India needed to "homogenize" its liability law with the rest of the world.
With the 1984 Bhopal gas tragedy still fresh in India's mind, parliament five years ago passed a law that makes equipment suppliers responsible for an accident, a deviation from international norms that companies found hard to swallow.
VIDEO0:3500:35GE may move manufacturing abroad: Immelt
In January, Modi and U.S. President Barack Obama unveiled a plan centered on insurance aimed at breaking the stalemate, but India stopped short of softening the liability law. At the time, GE-Hitachi Nuclear Energy said it would review the governmental agreement in due course.
It appears to have fallen short of the company's requirements.
"I am not going to put my company at risk for anything -- there is no project that is worth it. We have to get common language on this," Immelt told reporters.
"There is an extremely standard liability regime that the rest of the world has adopted and as we go forward and think about investing, whatever happens has to homogenized between India and the rest of the world," he said.
Modi is due to travel to the United States later this week for a trip that includes a summit with Obama and meetings with tech giants in Silicon Valley.
Read MoreEx-Im Bank expiry prompts GE to ship 500 jobs overseas
Immelt also said GE was likely to move more jobs overseas from the United States unless Congress changes the policy on its export credit agency, EXIM bank.
"We think about remaking the EXIM capability using other export credit agencies elsewhere in the world, there are 60 of them elsewhere in the world. So I think it's more likely that there will be more job moves unless this policy changes," he said.
Immelt has been campaigning to revive the agency after its authorization expired at the end of June, blocking the bank from writing new loans and trade guarantees.
On Tuesday GE revealed plans to shift up to 500 U.S. manufacturing jobs to Europe and China because it can no longer access EXIM financing.
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6e1917d7ab53eb31e8f97f9635490021 | https://www.cnbc.com/2015/09/21/gold-retains-losses-as-firmer-dollar-stocks-dent-safe-haven-demand.html | Gold dips as renewed rate rise bets lift dollar; commods slide | Gold dips as renewed rate rise bets lift dollar; commods slide
Getty Images
Gold fell 1 percent on Tuesday, pressured as the dollar strengthened on renewed expectations that the Federal Reserve will raise U.S. interest rates for the first time in nearly a decade.
Weakness in other commodities also weighed on gold, which rallied last week after the Fed left rates at ultra-low levels, keeping a lid on the opportunity cost of holding non-yielding bullion. Gold failed to maintain those gains after a Fed official emphasized that a rise had only been postponed.
was down 0.7 percent at $1,124.96 an ounce, while U.S. gold futures for December delivery settled down 0.7 percent at $1,124.80 an ounce.
VIDEO1:4901:49A golden opportunity: 4 trades in goldFast Money
Platinum slid the most among precious metals, down more than 3 percent to a 6-1/2-year low. Some traders cited news that the falsification of Volkswagen AG U.S. vehicle emission tests could affect 11 million of its cars worldwide. Platinum is used in diesel catalysts.
Platinum was down 3.4 percent at $932.75 an ounce, after falling to its lowest since January 2009 at $929.50.
"It is a risk-off day with capital moving to bond markets as opposed to holding commodities or equities for the moment," said Bill Wosnack, a broker for Atlantic Floor Group in New York.
Commodity prices fell to two-week lows, stocks fell sharply and bond yields declined. Gold was not viewed as a safe-haven asset, but was pressured as the U.S. dollar rose to an almost two-week high.
Read MoreGold's going back to its lows—how to play it: Trader
Dan Heckman, senior investment consultant for U.S. Bank Wealth Management in Kansas City, said gold was pressured by "a stronger dollar based on the belief that the Fed will raise rates still this year, possibly as soon as October, and a lot of criticism of the Fed not raising the Fed funds rate."
Atlanta Fed President Dennis Lockhart said on Monday that last week's decision was largely a "risk management" exercise, and he still expects an increase this year. St. Louis Fed President James Bullard said the central bank could lift rates at its October meeting.
"We're still in a situation where investors are going to wait and see when a hike will happen," Capital Economics analyst Simona Gambarini said.
Spot palladium was down 0.6 percent at $607.47 an ounce and silver down 2.6 percent at $14.77 an ounce.
The world's largest gold-backed exchange-traded fund, SPDR Gold Shares, said its holdings fell for the fist time in nearly two weeks on Monday.
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3000215114f91313da784f52cb6dfdc2 | https://www.cnbc.com/2015/09/21/golds-going-back-to-its-lows-how-to-play-it-trader.html | Gold's going back to its lows—how to play it: Trader | Gold's going back to its lows—how to play it: Trader
VIDEO2:0702:07Gold’s going back to its lows—how to play it: TraderTrading Nation
There's just no love for gold.
The precious metal fell Monday, retreating from a three-week high in the previous session, as investors shook off last week's Fed decision to leave interest rates unchanged. is now down more than 4 percent on the year, and according to one trader who relies heavily on the charts and options market, it's about to get a lot worse.
Read MoreGold rally set to fizzle out: Expert
Looking at a chart of the , the ETF that tracks gold, Andrew Keene noted a series of failed rallies this year. "Every time we see a move above the 50-day moving average, it proves to be a false breakout," Keene told CNBC's "Trading Nation" on Monday, marking four distinct moves. "I think this is going to be the fifth time and we are going to find sellers," added the founder of AlphaShark Trading. "I think we head back to that $105 level, where we bottomed out a week and a half ago." That's a 3 percent decline from Monday's price of around $108.50.
To play for a drop in the GLD, Keene purchased a put butterfly. This is a bearish options strategy where a trader will buy one put, sell two lower strike puts of the same expiration and then buy one additional lower strike put. The goal is for the stock, or in this case, ETF to fall to the strike that you are short.
Specifically, Keene purchased the GLD October 107/105/103 put butterfly for a total cost of 25 cents. In this defined-risk strategy the trade is most profitable if the GLD falls to 105 by the third week of October, but it does allow investors to make money across a wider range.
"If GLD expires on October expiration between $103.25 and $106.75 I will make money on this trade," added Keene. "This is a great reward-to-risk setup in the GLD."
Want to be a part of the Trading Nation? If you'd like to call into our live Wednesday show, email your name, number and a question to TradingNation@cnbc.com
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dd66c59120ec1026de6db1b42c8fd1f6 | https://www.cnbc.com/2015/09/21/gov-scott-walker-quitting-gop-race-nyt-citing-sources.html | Gov. Scott Walker drops out of GOP race | Gov. Scott Walker drops out of GOP race
Governor of Wisconsin Scott Walker.Getty Images
Wisconsin Gov. Scott Walker ended his White House bid on Monday and called on other Republican presidential candidates to do the same.
A source familiar with the decision tells NBC News that the decision to leave the race was made in the last 24 hours. Walker held a meeting with a small group of outside advisers at the governor's residence to discuss the move.
The governor had been presented with a number of options in terms of a political roadmap, mostly concentrated around an aggressive push in the key early state of Iowa. Faced with flagging campaign fundraising, Walker chose not to take that path, which would have required a major shakeup of his campaign infrastructure.
"It's been a rough couple of weeks and a decision needed to be made," said one person with knowledge of the conversations.
The Republican was once considered a frontrunner for the GOP nomination, topping polls in Iowa and winning accolades from conservatives for his fights against labor unions during his tenure as governor of the state.
But a series of missteps—and the rise of unconventional candidates like Donald Trump and Dr. Ben Carson—found him plummeting in national and key early state polls.
A CNN/ORC poll out this weekend found Walker winning support from less than one-half of one percent of GOP primary voters.
Walker's performance was lackluster in the two GOP primary debates to date, and he had faced calls to shake up his campaign staff.
He had also been lambasted for unclear answers and flip-flops, particularly involving his views on immigration policy.
He is the second Republican candidate to exit the presidential race. Texas Gov. Rick Perry dropped out before last week's CNN debate in Simi Valley, California.
Walker's network of endorsers and campaign staff will now be in high demand.
At an event held Monday night by the National Review and Google, Marco Rubio's campaign manager said that the Florida senator has already secured the support of Walker's New Hampshire state co-chair.
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616c3937e6a194d20a84cd1c5de9be9d | https://www.cnbc.com/2015/09/21/greek-election-win-overshadowed-by-reform-urgency.html | After the vote: 'Massive challenges' for Tsipras | After the vote: 'Massive challenges' for Tsipras
VIDEO2:0902:09Greek govt must implement bailout: ChairmanWorldwide Exchange
VIDEO1:0801:08 Impact of Greek capital controls ‘huge’: Fmr MinisterSquawk Box Europe
VIDEO1:5501:55Greece contagion risk has subsided: CIO Squawk Box Europe
VIDEO1:5301:53Greeks react to Syriza victorySquawk Box Europe
Alexis Tsipras is returning to office as Greek prime minister after a victory in the weekend's general election. But economists warn the returning premier faces "massive challenges" and must begin the hard work on reforms without delay if the country is ever to recover.
Tsipras' leftwing party Syriza claimed 35.5 percent of the vote, seeing off the main conservative opposition party New Democracy on 28.2 percent, Reuters said. The interior ministry said that would give Syriza 145 seats in the 300-seat parliament.
Syriza is to form a coalition government with the rightwing Independent Greeks party, the party's junior partner in the previous government. The renewed deal would give the coalition a narrow majority of five seats.
Greek Prime Minister Alexis TsiprasKostas Tsironis | Bloomberg | Getty Images
The election came about after Tsipras quit in August as a result of internal party opposition to his decision to sign a third bailout deal with international lenders worth 85 billion euros ($96.2 billion) in July amid capital controls and near-bankruptcy in Greece.
The deal requires that Greece makes deep reforms and reaches tough economic targets and prompted both political and public anger that Tsipras had capitulated. The disillusion felt by the Greeks in the bailout process and politics – especially among those who voted against the bailout deal in the summer – was reflected in the turnout figures for Sunday's election: 55 percent.
However, speaking to cheering crowds in a central Athens square Sunday evening, Tspiras promised a period of stability and said he "felt vindicated" after quitting in August to start on a clean slate with voters, Reuters reported.
Read MoreSyriza forms new coalition government
Giorgos Stathakis, former minister for economy, infrastructure, shipping and tourism for Syriza, told CNBC Monday that he was confident that Tsipras could implement reforms but Theodore Fessas, chairman of the Hellenic Federation of Enterprises, said no time could be wasted. "I hope the program will be implemented now," he told CNBC in Athens.
With his party divided and opponents on both right and left, Tsipras' election win on Sunday might be something of a pyrrhic victory with the uphill struggle to implementing reforms – including controversial pension and labor market reforms as well as tax hikes – ahead of him.
"The challenges that Tsipras faces are massive," Stefan Auer, associate professor and director of European Studies at the University of Hong Kong, told CNBC Monday.
"The main problem remains that no one wants to take ownership of this bailout deal and the reforms that are necessary. Tsipras made it clear that he doesn't like it, the public administration that needs to be reformed doesn't like it and pensioners won't like it," he said.
Read MoreReaction: Alexis Tsipras regains power in Greece
"The optimists would say this election strengthens Tsipras' chances of implementing reforms but the pessimists would point out that unless and until the Greek government are convinced that these reforms are needed, they will not succeed -- and I belong to the pessimists."
Fabio Balboni, European economist at HSBC, also agreed that Tsipras faced "many challenges ahead."
"The new government is likely to have a thin parliamentary majority and many challenges lie ahead: re-starting economic growth after the likely contraction in the third quarter, recapitalizing the banks, removing capital controls, completing the pension reform, and achieving much-needed debt re-profiling," he said in a note Monday.
While the reforms that Tsipras must carry out will tend to take center-stage over the next few weeks and months, talks between Greece and its lenders are likely to return to the thorny subject of debt forgiveness.
The debt to gross domestic product (GDP) ratio in Greece is the highest in the euro zone and is expected to hit 180.2 percent in 2015, according to the European Commission's forecasts.
While Greece and the International Monetary Fund (IMF) have said debt restructuring is crucial for Greece (and the IMF has said it won't participate in a third bailout without such leeway), Germany and others in the euro zone are reluctant to agree to give Greece more room to maneuver over debt, fearing that it could set a precedent for other indebted euro zone countries.
Senior economist at ING, Carsten Brezski, told CNBC that discussions over debt would have to take place sooner or later. "We still need to discuss the debt restructuring, that's the big issue," he told CNBC Europe's "Squawk Box" Monday.
"We do have the reforms and those are something that Tsipras will have to implement but the big issue is debt forgiveness and this is something that will come back on the European agenda."
- By CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt. Follow us on Twitter: @CNBCWorld
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a344c05c8f3ab0a17d1f40a7748368f1 | https://www.cnbc.com/2015/09/21/how-much-do-you-really-need-for-retirement.html | How much do you really need for retirement? | How much do you really need for retirement?
VIDEO1:0801:08Are you saving enough for retirement?Retirement
It's the age-old question: How much should I save for retirement?
For years, financial advisors recommended people save at least $1 million to enjoy a comfortable retirement. But given longer lifespans and concerns about the financial status of Social Security, is that target enough to fund a potentially decades-long retirement?
Maybe not.
Well-off investors surveyed by asset manager Legg Mason in March said that they would need at least $2.5 million to maintain their lifestyles in retirement. And a recent survey by the Employee Benefits Research Institute found more than 1 in 10 workers overall think they'll need to save at least $1.5 million to retire comfortably.
On the other hand, 69 percent in the same EBRI survey thought they'd need to have less than $1 million by retirement—and 1 in 5 thought they'd need to save $250,000 to $499,999. (Even that is more than what many retirees have actually saved. The average retirement savings is about $104,000 for households with members ages 55 to 64 and $148,000 for households with members 65 to 74 years old, according to an analysis by the Government Accountability Office.)
Can a doctored photo save your retirement?
Financial advisors say the estimates are not surprising, given the range in incomes in America.
That's one reason why many advisors recommend investors use their income to benchmark their progress in building a nest egg. For instance, Fidelity Investments, the nation's largest provider of retirement accounts, suggests workers aim to save at least eight times their ending salary by retirement.
Advisors often estimate how much a client will need in retirement by calculating an income replacement rate based on the client's current income. An 80 percent replacement rate is a common benchmark. That means if an investor makes $100,000 annually, he or she would need a portfolio that generates $80,000 in income each year plus annual increases to adjust for inflation.
David Blanchett, head of retirement research at the Morningstar Investment Management group, tested the 80 percent income replacement rate for retirees using government survey data and Monte Carlo simulations.
A replacement rate of 70 to 80 percent is a reasonable assumption for most households, Blanchett found. However, when actual spending patterns of retirees were considered, the data showed that many people could get by with about 20 percent less in retirement savings.
"The true cost of retirement is highly personalized based on each household's unique facts and circumstances," Blanchett concluded.
How much should you set aside for retirement?
Income may not be as important as what your expenses will be in retirement when estimating the size of your nest egg.
"Specific dollar amounts are arbitrary, and percentages of income do not matter much at all either since many people's incomes fluctuate dramatically over time," said Elizabeth Grahsl, a certified financial planner in Dallas. "The only thing that matters is your expected expenses in retirement."
Grahsl recommends her clients accumulate enough savings to cover 25 years of expenses in retirement. That's a reasonable assumption for people nearing retirement age now. The average man who is 65 is expected to live until 84, according to the Social Security Administration. and the average 65-year-old woman is expected to live to 87.
"Most people can live on far less than they make once they have independent kids and a paid-off home," Grahsl said.
Stop your grown kids from ruining your retirement
Retirement planning shouldn't be crafted around a rule of thumb, said Kathy Kraeblen, a certified financial planner at PNC Wealth Management in Raleigh, North Carolina.
People need to consider how long they want to be in the workforce, who they will be responsible for in retirement, all their sources of income (including Social Security) and also estimate what their future health costs could be to come up with a clear estimate of their savings needs, Kraeblen said.
"It's a decision that should be personalized because everyone is different," she said.
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9d2f4e669d6eacf099875346ab94bbf1 | https://www.cnbc.com/2015/09/21/i-would-have-dissented-on-vote-to-keep-rates-unchanged-feds-bullard.html | Fed's Bullard: October rate hike possible, but ... | Fed's Bullard: October rate hike possible, but ...
VIDEO3:0203:02Time to raise rates, it's not complicated: James BullardSquawk Box
VIDEO2:4302:43Chair should hold press conference every meeting: BullardSquawk Box
VIDEO0:3300:33Fed’s Bullard calls out Jim CramerSquawk Box
VIDEO2:1102:11China hard landing 'long shot': James BullardSquawk Box
VIDEO2:2102:21Fed likely to raise over next 3-4 months: Roger AltmanSquawk Box
St. Louis Fed President James Bullard said Monday it's time to increase interest rates, and policymakers should not react to turmoil in financial markets.
The Federal Reserve's decision to leave rates unchanged last week was a "close call," Bullard said—leaving open the possibility that rates could go higher at the Fed meeting next month. "There's a chance," he added in a CNBC "Squawk Box" interview. "[But] the problem with going from one meeting to the next is how much information has really changed."
"I would have dissented on this decision," said Bullard, who is not a voting member of the Fed's policy setting committee. The lone dissenting vote on Thursday's decision was Richmond Fed chief Jeffrey Lacker.
Bullard said there should be a news conference by the Fed chief after every meeting, instead of the current every other meeting schedule. "You'd smooth it out, making every meeting the same. There's no additional importance given to any meeting," he said. The gathering next month does not have a news conference scheduled, leading many market watchers to discount October and look to December's meeting, which does have a Janet Yellen news conference.
As things stand, Bullard said, "there's a powerful case to be made that it's time to raise interest rates. And the case is not complicated. ... Policy settings are [in] an emergency. The economy itself, the goals of the committee, have essentially been met." Even if rates go up, monetary policy will still be accommodative, he added.
Stocks were crushed Friday, with the Dow Jones industrial average losing nearly 300 points, a day after the Federal held off on hiking interest rates. "The Fed cannot permanently raise stock prices. The idea that the Fed is going one way or the other and this is what's driving the stock market is not true," Bullard said.
Read More Bullard vs Cramer on Fed impact on stock market
On reasons to wait, policymakers Thursday expressed concerns that a possible global economic slowdown and recent financial turmoil could hurt the U.S. economy. But Bullard said those concerns are probably overblown. "The impact of China coming directly back to the United States is relatively small," he said. "China is slowing. [But a] hard landing [is] a long shot at this point."
American CEOs in charge of operations in China are concerned, he acknowledged. "But that's not the U.S. economy. The U.S. economy is much less exposed to China than some of the biggest companies individually."
Fed officials Thursday pared their projections for economic growth to 2.3 percent for next year. The Fed pegged inflation at 1.7 percent in 2016, still below its 2 percent target, even as the unemployment rate was forecast to fall to 4.8 percent. Bullard said unemployment is set to go into the 4 percent range not matter what the Fed does: "It's already baked in the cake."
"We have a strategy. The strategy is go a little bit earlier and go gradually, so that we're not marching up 25 basis points a meeting the way were were in 2004 to 2006, which ultimately turned out to be behind the curve anyway," Bullard said. "That will give us a lot of flexibility to react to all the problems that we see out there and the low inflation issue."
He argued the alternative would be to not act until absolutely necessary, which could result in an abrupt hike or series of hikes. "That would be a 1994-type scenario," he said, "and that is very much a volatility-inducing kind of scenario."
Read MoreFed's Williams: Not raising rates was a 'close call'
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4297d5c35fab38614831ace44bd99b7d | https://www.cnbc.com/2015/09/21/india-turns-to-israel-as-pakistan-china-build-fleets.html | India turns to Israel as Pakistan, China build fleets | India turns to Israel as Pakistan, China build fleets
Getty Images
India has accelerated plans to buy drones from Israel that can be armed, defence sources said, allowing the military to carry out strikes overseas with less risk to personnel.
The news comes weeks after long-time rival Pakistan first reported using a home-made drone in combat when it attacked militants on its soil, raising the prospect of a new front in the nuclear-armed neighbors' standoff over Kashmir that has twice spilled into war.
The plan to acquire Israeli Herons was first conceived three years ago, but in January the military wrote to the government asking for speedy delivery, the sources said, as Pakistan and China develop their own drone warfare capabilities.
VIDEO3:3803:38Where UPS sees opportunities in China
India has already deployed Israeli unmanned aerial vehicles (UAVs) along the rugged mountains of Kashmir for surveillance, as well as on the disputed border with China where the two armies have faced off against each other.
In September, the Indian government approved the air force's request to acquire 10 Heron TP drones from Israel Aerospace Industries (IAI) that can be fitted with weapons to engage targets on the ground, an air force official with knowledge of the matter said.
He added that he expected the agreement to be inked soon. The Indian Defence Ministry declined to comment.
The plan to buy Herons in a deal estimated at $400 million would open the option of covert cross-border strikes.
Currently the two armies exchange fire across the de facto Kashmir border at times of tension, but do not cross the Line of Control (LoC) by land or air.
"It's risky, but armed UAVs can be used for counter insurgency operations internally as well across the borders; sneak attacks on terrorist hideouts in mountainous terrain, perhaps," said an army officer in the defence planning staff.
Gurmeet Kanwal, a former head of the government-funded Centre for Land Warfare Studies in New Delhi, said the armed Herons due to enter Indian service by late 2016 will give the air force deep-strike capability.
The United States has carried out hundreds of drone strikes inside Pakistan, targeting al Qaeda and other militants in its northwest. Pakistan has allowed such targeted killings, even though it complains about them in public.
Indian drones, in contrast, face being shot down as soon as they show up on Pakistani radars, the army officer and Kanwal said.
Read MoreIndia FinMin: I want an RBI rate cut
Deniability would be essential in any use of armed drones by India and Pakistan across their bitterly contested border, said Pervez Hoodbhoy, a leading weapons proliferation expert in Pakistan.
"It is likely that drones would be used in a surreptitious mode close to the LoC, far away from populated areas," he said.
In July, the Pakistan army said it had shot down a small Indian spy drone in Kashmir. India did not comment.
Michael Kugelman, South Asia specialist at the Washington D.C.-based Woodrow Wilson International Centre for Scholars, said the arrival of lethal drones in the region could heighten mutual suspicion at a time when ties are strained.
"Pakistan might worry that India could use an armed drone to attack terrorist safe havens in Pakistan or to target a specific terrorist there."
"India might worry that Pakistan will now be tempted to add drones to its repertoire of asymmetric warfare tactics it has used against India."
Only the United States, Israel and Britain are known to have used armed drones in combat, although more than 70 countries have UAVs with surveillance capabilities, according to New America, a Washington D.C.-based think-tank.
China has no public strategy for armed drone development, but it has poured resources into UAVs and has shown them off at exhibitions. Chinese combat drones still lag far behind the Israeli-made ones in terms of capability, military experts say.
A delegation from state-owned IAI has been holding talks with the Indian defence ministry to determine the possibility of local manufacture of the Heron TP as part of the "Make-in-India" programme, IHS Jane's said.
Israel does not confirm or deny using or producing armed drones. IAI declined comment on the proposed sale of the Herons, as did Israel's Defence Ministry, which oversees such arms exports.
Read MoreIndia's InMobi ties up with China's APUS to take on Google
IAI is one of several Israeli companies manufacturing drones or related technologies.
At least one of them has sold armed drones to a foreign country other than India, a person involved in the deal said, without elaborating on the client, model or manufacturer of the aircraft.
Such deals are handled directly between the governments of Israel and the purchasing country, with mutual secrecy agreements, the person added.
It is not clear what kind of weapons will be fitted to the Heron TPs that India plans to buy.
India has been trying to develop its own combat drone, but the defence research organisation has struggled to integrate a missile onto the proposed Rustom series of UAVs.
David Harari, a retired IAI engineer and Israel Prize winner for his pioneering work in drone development, said India could mount its own weaponry on an Israeli supplied drone, helped by close technological cooperation between the two countries.
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b8328dd6c44077567195ed46ab789c01 | https://www.cnbc.com/2015/09/21/indias-finance-minister-i-want-an-rbi-interest-rate-cut.html | India FinMin: I want an RBI rate cut | India FinMin: I want an RBI rate cut
VIDEO4:1804:18India must focus on domestic investment, demand: Fin Min
The chorus calling for India's central bank to lower interest rates at its meeting next week gained a new voice, with the finance minister telling CNBC he also wants a cut.
"As somebody who wants India's economy to grow and who wants domestic demand to grow, I would want the rates to come down," India's Minister of Finance Arun Jaitley told CNBC .
But having entrusted the Reserve Bank of India (RBI) with this responsibility, Jaitley said he was sure that the central bank was aware of economic developments and expressed confidence that the RBI will appropriately act with a sense of responsibility.
Read More Modi says China's pain is India's gain as he pushes investment
"I am certain that the RBI (Reserve Bank of India), along with the governor and all his other colleagues, will come to a very balanced decision," he said. The RBI's next meeting is on Sept. 29.
Jaitley's push for a rate cut from the current 7.25 percent level follows the country's top economic advisor, Arvind Subramanian, saying earlier this month that he is concerned about deflation, not inflation in Asia's third largest economy. Consumer price inflation in August slowed in August, with prices rising 3.66 percent on-year, while the wholesale price index dropped 4.95 percent on-year in the month.
The calls for a rate cut come as India's economy is slowing, with growth around 7 percent in the April-to-June quarter. Moody's in August cut its gross domestic product (GDP) growth forecast to 7 percent for this year from its previous 7.5 percent forecast over concerns that the monsoon season was a disappointment.
Jaitley is hoping a rate cut will boost some sectors of the economy.
Read More Indians cry foul over soaring onion prices
"Real estate, for instance, is a sector which can give a big push to India's growth and that's a sector which is impacted because of high policy rates," he said. "If policy rates do come down over the next year or so, certainly this a sector which has a huge potential to grow."
India's property sector has suffered from subdued demand and a rise in unsold inventory across different regions, Moody's noted in a report earlier this month.
Raj Kumar | Mint | Getty Images
"Cuts in interest rates by the Reserve Bank of India, if passed on by the banks, will filter down to the property market, reducing the cost of borrowing for developers as well as buyers, and supporting demand," Vikas Halan, senior credit officer at Moody's, said in a statement.
Analysts have also looked somewhat askance at the current level of India's benchmark interest rates.
"The rates have not been dropped in line with a lot of other economies in the world," Sundeep Sikka, chief executive at Reliance Capital Asset Management, told CNBC Monday. "I think [a cut is] going to be sooner rather than later. There is clearly a need."
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f3a70087cac472b86ddffe894b8f4bc0 | https://www.cnbc.com/2015/09/21/it-could-be-a-long-time-before-its-safe-to-buy-oil.html | It could be a long time before it's safe to buy oil | It could be a long time before it's safe to buy oil
VIDEO3:1603:16Calling crude’s next moveTrading Nation
Despite the recent rally, it still might be too soon to bet on oil, traders say.
Crude oil jumped more than 3 percent Monday, the latest move in a series of sharp swings for the beleaguered commodity. Ari Wald, head of technical analysis at Oppenheimer, said although there are signs of calmer waters ahead, he doesn't see a safe time to buy just yet.
"We are starting to see some signs of stabilization, that is encouraging," Wald said Friday on CNBC's "Trading Nation." "However, we are recommending that our clients don't play for the upside here, that more needs to be done."
Read MoreUS oil prices surge 3% after US drilling falls
Wald said that when oil hit a new multiyear low in August of $38 a barrel, the weekly momentum was at a higher level than it was at previous lows for crude. This indicated that the selling strength had lessened, which could mean the potential for basing over the next few months, he said.
However, the longer-term trend remains downward, he said, with the 200-day moving average still on the decline.
"We'd rather sell the pop than play for it," Wald said.
In a Friday note, Robert Friedlander of Brean Capital noted that although oil has bounced in the past week, the commodity could still see some swings off the Fed's decision this month to keep interest rates low.
"It's been a good week for the crude bounce and $54's before $39's still looks possible," Friedlander wrote. "We're concerned that the WTI path to 54 (if it's really in play) could go through $42 if the FOMC headline spurs some 'normal' rerisking which for many probably involves an energy short against growth longs."
Goldman Sachs also recently cut its forecast for oil, saying that prices will likely remain lower for longer and that crude could fall to $20 a barrel.
In a Monday note, Brian Kinsella, Goldman Sachs' energy and utilities sector specialist, wrote that "While we do not believe investor expectations for 2016 oil prices are as low as our own, directionally there is far more appreciation/buy-in to a lower-for-longer thesis and for the need for U.S. production to decline in 2016."
Read More Goldman: This may push oil to $20
According to reports from the U.S. Energy Information Administration, commercial crude oil inventories declined for the week ended Sept. 11, and U.S. drilling activity has fallen. However, stockpiles of petroleum products have reached 1.3 billion barrels, a record high.
"U.S. crude oil inventories remain near levels not seen for this time of year in at least the last 80 years," the most recent EIA petroleum status report said.
Read MoreThis will be the next spark for a selloff in oil
Erin Gibbs, equity chief investment officer of S&P Capital IQ, said because of the continued supply glut, she doesn't see real growth in oil occurring until the second half of 2016.
"When you have supplies at their highest levels, this is not the place where you'd expect oil to go up," Gibbs said Friday on "Trading Nation." "We just don't see the fundamentals and the demand to push the prices back up right now."
Want to be a part of the Trading Nation? If you'd like to call into our live Wednesday show, email your name, number and a question to TradingNation@cnbc.com
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35c0a8025e7f64d5729cfbd8169b8df0 | https://www.cnbc.com/2015/09/21/ive-cnbc-excerpts-federal-reserve-bank-of-st-louis-president-james-bullard-speaks-with-cnbcs-squawk-box-today.html | CNBC Exclusive: CNBC Excerpts: Federal Reserve Bank of St. Louis President James Bullard Speaks with CNBC’s “Squawk Box” Today | CNBC Exclusive: CNBC Excerpts: Federal Reserve Bank of St. Louis President James Bullard Speaks with CNBC’s “Squawk Box” Today
WHEN: Today, Monday, September 21st
WHERE: CNBC's "Squawk Box"
Following are excerpts from the unofficial transcript of a CNBC EXCLUSIVE interview with Federal Reserve Bank of St. Louis President James Bullard on CNBC's "Squawk Box" (M-F, 6AM-9AM ET) today. Following are links to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000423050, http://video.cnbc.com/gallery/?video=3000423048 and http://video.cnbc.com/gallery/?video=3000423040.
All references must be sourced to CNBC.
BULLARD ON ARGUING AGAINST THIS DECISION
JAMES BULLARD: I ARGUED AGAINST THIS DECISION. I THOUGHT IT WAS TIME TO MOVE AND I ACTUALLY WOULD HAVE DISSENTED ON THIS DECISION.
JOE KERNEN: WHY?
BULLARD: I THINK ITS INAPPROPRIATE TO REACT TO FINANCIAL MARKET TURMOIL, YOU KNOW
KERNEN: IN CHINA.
BULLARD: IN CHINA. WELL, YOU KNOW THESE THINGS CAN GO DOWN BUT THEY CAN RALLY A COUPLE WEEKS LATER AND THEN PEOPLE SAY ARE YOU GOING TO NOW CHANGE YOUR POLICY AGAIN?
BULLARD ON IT BEING TIME TO NORMALIZE
THE CASE IS NOT COMPLICATED. THE CASE IS THAT POLICY SETTINGS ARE AN EMERGENCY, AND THE ECONOMY ITSELF, THE GOALS OF THE COMMITTEE ESSENTIALLY HAVE BEEN MET. UNEMPLOYMENT IS 5.1% AND INFLATION WHICH IS BEING DRIVEN DOWN BY OIL RIGHT NOW BUT IF YOU STRIP THAT OUT AND LOOK AT THE DALLAS FED TRIM MEETING INFLATION IS ABOUT 1.6% YEAR-OVER-YEAR. THATS ABOUT AS CLOSE AS WE HAVE BEEN TO OUR GOAL VARIABLES IN 50 OR 60 YEARS. SO THE PRUDENT THING TO DO IS TO START INCHING YOUR POLICY LEVERS TO NORMAL READINGS.
BULLARD ON INCHING BACK TO NORMAL
OKAY PEOPLE SAY YOU GOT WORRIES, YOU GOT ELEMENTS OF THE LABOR MARKET THAT ARENT QUITE RIGHT, YOU GOT THIS AND THAT. WE'RE FINE. THATS FINE. WE ARE GOING TO HAVE A VERY EASY MONETARY POLICY OVER THE NEXT THREE YEARS NO MATTER WHAT WE DO. SO DONT COME TO ME AND SAY THERE ISNT ENOUGH ACCOMMODATION IN THE SYSTEM. THERE IS ENOUGH ACCOMMODATION IN THE SYSTEM. WE'RE ADDRESSING ALL THE THINGS WE NEED TO ADDRESS, AND I UNDERSTAND THAT THERE ARE RISKS OUT THERE BUT YOU HAVE TO TAKE A PRUDENT POLICY AND START TO INCH YOUR WAY BACK TO NORMAL.
BULLARD ON LOOKING FOR A WAR
WE'RE ABOUT 4/10 AWAY ON INFLATION FROM OUR TARGET AND THE 5.1% IS BASICALLY RIGHT ON TOP OF OUR ESTIMATE OF THE NATURAL RATE OF UNEMPLOYMENT. SO WE'VE BASICALLY VANQUISHED ALL OUR FOES. THE TANKS ARE ON THE FIELD, THE ENEMY HAS LEFT THE FIELD, AND WE'RE LOOKING FOR ANOTHER WAR TO FIGHT. WE SHOULDN'T BE DOING THAT.
BULLARD ON MEETINGS
BY HAVING A PRESS CONFERENCE EVERY OTHER MEETING, IT'S UPSETTING THAT KIND OF TRADE OFF THAT IS NORMALLY MADE. THAT PUTS HEAVY PRESSURE ON THE SEPTEMBER MEETING WHICH DIDN'T HAVE TO BE THE CASE. WHY NOT JULY? WHY NOT OCTOBER? DIDN'T HAVE TO BE THE CASE. BUT, NO, ALL THE HEAVY PRESSURE GOES ON THERE AND THEN THE COMMITTEE HAS TO MAKE A REALLY TOUGH DECISION IN THE MIDST OF A LOT OF FINANCIAL MARKET UPSET IN THE RUN UP TO THE MEETING. I DON'T LIKE THAT. I THINK IT SHOULD BE SMOOTHED OUT, YOU SMOOTH IT OUT BY MAKING EVERY MEETING EXACTLY THE SAME.
BULLARD ON OIL
THERES A REASONABLE CASE TO BE BUILT AROUND THAT THE INFLATION OUTLOOK IS SLIGHTLY WEAKER. BUT WE KNOW THAT THESE ARE TEMPORARY FACTORS, THE OIL FACTOR. AND THE THING ABOUT OIL IS ITS ULTIMATELY A BULLISH FACTOR FOR THE U.S. ECONOMY. WE'RE GOING TO BE ABLE TO BENEFIT, WE'RE A BIG OIL USER, WE'RE GOING TO BENEFIT FROM LOWER COMMODITY PRICES AROUND THE WORLD. SO I DON'T THINK YOU SHOULD BE CITING THAT AS, YOU KNOW, A SIGN OF SOMEHOW THAT IS GOING TO COME BACK TO BITE US.
BULLARD ON CHINA
WE HAVE STAFF ASSESSMENTS OF CHINA FROM WHAT I'VE SEEN, YOU KNOW, THE NUMBERS THAT CHINA IS REPORTING ARE ABOUT AS GOOD AS WHAT WE HAVE. OBVIOUSLY, IT'S NOT A VERY TRANSPARENT ECONOMY. THERE ARE CONCERNS ABOUT CHINA, BUT THERE HAVEN'T BEEN CONCERNS ABOUT CHINA FOR THE LAST TEN YEARS THAT THERE WOULD BE A HARD LANDING. IT DOESN'T SEEM ANY MORE IMMINENT RIGHT NOW THAN IT HAS BEEN IN THE PAST.
BULLARD ON FORECASTS
BULLARD: IN THIS ROUND OF FORECASTS, WE ACTUALLY MOVED UP OUR FORECAST FOR 2015 GROWTH.
JOE KERNEN: TO?
JAMES BULLARD: TO 2.5%.
KERNEN: AND THEN NEXT YEAR?
BULLARD: AND THEN NEXT YEAR 2.5 TO 3 OVER THE NEXT TWO YEARS. AGAIN, THIS IS IN AN ECONOMY THAT HAS A VERY LOW POTENTIAL GROWTH RATE. PROBABLY 2% OR EVEN A LITTLE BIT BELOW 2%. SO YOU'RE TALKING ABOUT ABOVE TREND GROWTH. SO BECAUSE OF THAT, IM EXPECTING CONTINUED IMPROVEMENT IN LABOR MARKETS NO MATTER WHAT WE DO. THIS IS ALL BAKED IN THE CAKE. I THINK UNEMPLOYMENT IS GOING TO GO DOWN INTO THE 4% RANGE, PROBABLY BELOW 4.5%. AND THESE OTHER ASPECTS OF LABOR MARKETS WILL JUST CONTINUE TO IMPROVE.
About CNBC:
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CNBC also has a vast portfolio of digital products which deliver real-time financial market news and information across a variety of platforms. These include CNBC.com, the online destination for global business; CNBC PRO, the premium, integrated desktop/mobile service that provides real-time global market data and live access to CNBC global programming; and a suite of CNBC Mobile products including the CNBC Real-Time iPhone and iPad Apps.
Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://www.nbcumv.com/mediavillage/networks/cnbc/.
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d64d834a1d93565983979e7b0f0d5e16 | https://www.cnbc.com/2015/09/21/lightning-round-im-surprised-this-is-so-low.html | It's that time again! Jim Cramer rang the lightning round bell, which means he gave his take on caller favorite stocks at rapid speed:
Twitter: "I like Twitter, my charitable trust owns it. I think at this point the stock has come down so much, I think that if it went down 4 or 5 more points there would be a lot of companies wanting to buy it. But I don't know who the CEO is going to be."
Lululemon: "I am in agreement with Morgan Stanley. I thought that the selloff was overdone and it happened while I was out in California. I took a look at the stock this weekend and was surprised that it was down so low. So were they, and I think they are right."
: "This group is under heavy liquidation. It makes no sense to me at this point because a lot of them are connected with natural gas. I like KMI, this was actually the first day they have been up in a very long time."
Consolidated Edison: "A lot of times these have to do with just yields. At this point I think Con Ed is back to 4 percent yield, if it drops anymore I think you are absolutely fine on Con Ed. I like their asset light method of not having to have coal plants... and they're not building any nukes."
Powershares: "When you say you are just out of college, I do want you to take a little more risk. I've been working with some generational investing, and I think you can pick the best of the best in that QQQ. I prefer you to do that."
Read more from Mad Money with Jim Cramer
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Northern Tier: "It yields 19 percent now, which you know I actually think is a bit of a red flag. That is a little too high, so let's be careful and not be greedy is the way I would look at it."
ConforMIS: "I've done a lot of work on that thing, I really don't think they made false statements. I think that is just pretty much the cost of doing business. This stock has come down a great deal and I don't think it's really worth selling down here. I really don't."
Exact Sciences: "When the stock was higher we decided it was time to ring the register. We felt that the best had happened. I'm sticking by that."
Questions for Cramer? Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine
Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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836beb7c507629a6b186aad890319e5f | https://www.cnbc.com/2015/09/21/malaysia-fund-1mdb-pm-najib-plagued-by-fraud-allegations.html | Timeline: The twists and turns in the tale of 1MDB | Timeline: The twists and turns in the tale of 1MDB
Signage for 1Malaysia Development Bhd. (1MDB) is displayed at the site of the Tun Razak Exchange (TRX) project in Kuala Lumpur, Malaysia.Goh Seng Chong | Bloomberg | Getty Images
For Malaysia's Prime Minister Najib Razak, the hits keep coming.
Just as the capital Kuala Lumpur settles down following a fraught rally last week, at which riot police turned water cannons on supporters of the PM, top U.S. media outlets, the Wall Street Journal (WSJ) and the New York Times (NYT), have reported yet more scandalous allegations about the country's sovereign wealth fund.
The 1Malaysia Development Berhad (1MDB) has been in the limelight for months, amid allegations of false auditing, huge debt and, more recently, financial fraud, with alleged links to Najib himself. (The PM has repeatedly denied any wrongdoing. His office has yet to respond to a request for comment on the latest developments.)
For outsiders, the twists and turns surrounding 1MDB can be dizzying. So, as the action heats up, here is a handy timeline of the events you should know about:
2008 - 1MDB is launched in the Malaysian state of Terengganu, with the aim of promoting long-term, sustainable economic development.
2009 - Najib expands the fund's operation nationally, with himself as chairman of the fund's advisory board.
2010 - Tony Pua, an MP with Malaysia's biggest opposition party, questions Najib on the fund's 425 million ringgit ($99.7 million*) profit, the Malaysian Insider reports. Pua asked the Najib to explain whether the paper profits were a result of transferring other government assets to 1MDB.
VIDEO2:5902:59Can Malaysia's central bank afford to move?Street Signs Asia
February 28, 2015 - UK-based investigative outlet, the Sarawak Report, edited by English journalist Clare Rewcastle Brown, publishes a detailed report accusing Malaysian billionaire Low Taek Jho of siphoning as much as $700 million from 1MDB. The report accuses Low of using PetroSaudi International, an oil company from the Middle East that signed a joint venture deal with 1MDB, as a front to siphon the money.
March 7 - The AFP reports on a letter it received from London-based law firm Schillings, which represented Low, in which he denies the allegations put forward by the Sarawak Report.
March 25 - A special task force is announced to look into 1MDB and its 42 billion ringgit ($11.5 billion) debt. Reports say the task force comprises the Inspector-General of Police (IGP), the Malaysian Anti-Corruption Commission, the Attorney General's Chambers, and the police force.
May 19 - The Malaysian Parliament's Public Accounts Committee (PAC) begins an investigation into 1MDB, according to reports.
June 3 - The Malaysian central bank launches a formal inquiry into 1MDB, requesting the fund hand over information so the central bank can determine if it has violated any of the bank's rules. On the same day, Reuters reports that the fund has released a detailed breakdown of its 42 billion ringgit debt, in order to counter allegations that some of the money is missing.
July 2 - The WSJ publishes a lengthy report on a government probe into the allegations surrounding 1MDB, alleging the probe has traced nearly $700 million flowing from the fund to Najib's personal bank accounts. The PM's office denies the allegations.
July 8 - A Malaysian task force, led by the then-Attorney General Abdul Gani Patail, the country's central bank and the Malaysian Anti-Corruption Commission, which was already investigating the 1MDB developments, freezes bank accounts related to the scandal. Malaysian police raid the offices of 1MDB.
July 19 - The Malaysian Communications and Multimedia Commission, which regulates Malaysia's internet, blocks access to the Sarawak Report from within the country.
July 22 - Singapore police suspend two local bank accounts connected to 1MDB. The Monetary Authority of Singapore says later that it is looking at the bank accounts to ensure they followed proper procedure for financial transactions.
July 27 - Malaysia's Home Ministry suspends the publishing permits of The Edge Weekly and The Edge Financial Daily - both of which belong to the Edge Media Group - for three months as punishment for their reporting on 1MDB. The Edge Financial Daily previously reported about the ongoing 1MDB scandal, including a detailed report claiming Low Taek Jho and PetroSaudi cheated Malaysia of $1.8 billion in cash.
July 28 - Najib carries out a cabinet reshuffle, dropping several ministers including Deputy PM Muhyiddin Yassin and Rural and Regional Development Minister Shafie Apdal. Yassin and Apdal had been critical of Najib's role in 1MDB. Malaysian state news agency, Bermana, reports that Attorney General Abdul Gani Patail was also replaced citing health reasons ahead of his retirement in October.
August 3 - The Malaysian Anti-Corruption Commission finds that 2.6 billion ringgit ($700 million) in Najib's personal account came from donors, not 1MDB, Reuters reports.
August 4 - Malaysian police issue arrest warrant for Clare Rewcastle Brown, editor of the Sarawak Report, on grounds of disseminating false reports on Najib.
August 14 - The ringgit, which had been on a downward trend, plunges to a 17-year low, losing as much as 2.6 percent to 4.1180 per dollar, in part due to concerns about the Federal Reserve's expected rate hike, and also because outside investors are concerned about the turmoil surrounding Najib.
August 21 - Local media report that a new Malaysian task force is being formed to continue the 1MDB investigations, notably leaving out the Malaysian Anti-Corruption Commission. Also, Switzerland's Office of the Attorney General opens criminal proceedings against two financial entities of 1MDB and against an unknown person, according to Reuters. Swiss financial regulator, FINMA, announces that is looking into specific Swiss banks, including whether they did business with 1MDB.
August 25 – The Malaysian Attorney General's office says the new task force is not involved in investigating 1MDB and related companies, but will investigate crimes such as tax evasion and illegal fund flows. Reuters reports that the AG's office says the new task force will, in fact, include staff from the Malaysian Anti-Corruption Commission.
August 29 - An estimated 25,000 people attend a weekend-long anti-government protest calling for the resignation of Najib. Former Malaysian leader Mahathir Mohamad, once a Najib ally, attends the rally.
September 7 - Local media reports the resignation of 1MDB advisory board member Abdul Samad Alias. Samad's resignation came after his repeated requests for a briefing on 1MDB's profits and losses went unanswered by the fund, according to reports.
September 9 – The WSJ reports that officials from an Abu Dhabi-based state investment fund, International Petroleum Investment Co. (IPIC), claim IPIC never received nearly $1.4 billion in payments owed by 1MDB for the purchase of power plants in 2012. 1MDB denies there are payments outstanding from its purchase of power plants in 2012. Draft reports, which the WSJ reviewed showed the $1.4 billion was paid by 1MDB to a IPIC subsidiary, Aabar Investments PJS.
September 10 - Hong Kong police begin a probe into deposits of more than $250 million, allegedly made to accounts related to 1MDB at a Credit Suisse branch in the city, the Financial Times reports. The investigation was prompted by a report to the authorities by vocal critic of 1MDB, Khairuddin Abu Hassan of UMNO. UMNO is also PM Najib's party.
September 14 - The Sunday Times reports the UK Serious Fraud Office is looking into evidence surrounding allegations of possible money laundering and financial fraud, brought against 1MDB by the UK-based Sarawak Report.
Read MoreMalaysia's Leader, Najib Razak, Faces U.S. Corruption Inquiry
September 15 - Swiss investigators are reported to have questioned key witnesses in the 1MDB scandal.
September 16 – As many as 30,000 Malaysians, the majority of whom are from the Malay community, march through Kuala Lumpur in a show of support for the government. Protestors clashed with riot police as they tried to break through barricades in the Chinatown neighborhood, sparking fears of escalating ethnic tension.
September 20 – The WSJ reports that the US Federal Bureau of Investigation (FBI) is the latest of a host of international bodies look into 1MDB. The story cites an unnamed source and says the scope of the FBI investigation is not immediately clear.
September 21 – Local media reports the Malaysian High Court has lifted the three-month suspension of The Edge Financial Daily and The Edge Financial Weekly. Also, the NYT reports that the U.S. Department of Justice is looking into properties held in the U.S. by Najib's stepson and other family friends. The NYT reports investigators are looking into a $681 million payment made to an account believed to be Najib's.
*Conversion based on the ringgit-dollar exchange rate on September 21
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c3ea6781eab1852ee9d46760f1c43b2b | https://www.cnbc.com/2015/09/21/nflpas-new-media-company-gives-access-to-athletes.html | NFLPA's new media company gives access to athletes | NFLPA's new media company gives access to athletes
Richard Sherman of the Seattle SeahawksGetty Images
The NFLPA is launching a new media company aimed at giving publications and brands access to content written by professional athletes from all backgrounds.
The labor organization that represents professional football players announced on Monday the creation of Athlete Content and Entertainment Media (ACE Media). The new organization will provide editorial and branded written and video pieces created by athletes and their teams. Instead of launching its own platform, it will partner with existing publications such as BET Networks and Bleacher Report to distribute the content.
"The mission is to tap into what we think is a huge opportunity to create athlete-driven sports lifestyle content," said ACE Media CEO Scott Langerman.
The NFLPA is the majority shareholder in the company. Sources close to the situation say the company will launch with funding in the seven-figure range. The NFLPA declined to comment.
Langerman, who previously worked as a media consultant for the NFLPA and held senior roles at SB Nation and Comcast SportsNet—said that when the public sees players on game day, they often don't get to see the intimate details off the court and the field. ACE Media will work as a "content engine" offering custom offerings to its publisher partners, including helping connect athletes with outlets and companies, in-house production of content, and advising on creative direction.
For example, publications ranging the likes of ESPN, Sports Illustrated and The Players' Tribune often feature stories by athletes themselves. ACE Media would be the behind-the-scenes conduit that could help find the right athlete to write about a topic, and, depending on the case, could aid in producing the piece.
"As professional athletes we have a huge opportunity to offer unbelievable levels of access and authenticity to the fans that support us," said Seattle Seahawks cornerback Richard Sherman in a statement. "With the launch of ACE Media, we now have a way to seize that opportunity by creating content that no one else can, showing sides of ourselves that you won't see anywhere else. We're excited about the content we plan to help create, and we're excited by the future of this company."
NFL and Snapchat team up to make sharing content easier
How the NFL makes the most money of any pro sport
The CEO added that ACE Media was launched as an expansion of the NFLPA's for-profit arm that began 20 years ago with NFL Players Inc., its licensing rights sector.
"What we want to be is the fuel that drives all those businesses," Langerman said. "We want to be working with honestly anyone and everybody to help them reach their audiences and give them a higher level of engagement."
Interest could potentially be high. Many brands are looking to sports to reach highly fickle male millennials who are widely known as the hardest demographic to advertise to. Having access to the playmakers that are captivating their interest could attract big marketing dollars, considering sports content is one of the most expensive categories to advertise on online. Still, with advertising during games and game rights coming at a premium, this could be a cheaper option to reach that segment of the population.
While ACE Media plans on expanding access to include athletes from all sports, the initial offerings will be focused on NFL players thanks to the robust support of the NFLPA. Partners announced at launch include Viacom's BET Networks, Turner's Bleacher Report, The Players' Tribune and Sports Illustrated's 120 Sports, which is a division of Time Inc. It also will be working with brand partner Nike.
120 Sports executive vice president Matt Carstens said that when his company and ACE Media began talks, they both discovered they had a shared vision over what types of content should be provided to today's fans and how it should be delivered.
"We have, and can continue to line up players on our own, both NFL players as well as other athletes," he said in an email. "Working with the NFLPA's new venture however enables us to build additional unique programs that leverage multiple NFL players, as well as provides us with access to events that aren't generally open to media. In short, we feel we'll have more opportunities to deliver better NFL content for 120 Sports viewers by partnering with ACE Media."
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a3f9114949513c89eb7fc2f8d49c21b5 | https://www.cnbc.com/2015/09/21/oil-prices-dip-as-traders-take-profit-following-sharp-jump.html | US crude futures settle down 1.8% at $45.83 | US crude futures settle down 1.8% at $45.83
VIDEO0:4700:47Oil in the redPower Lunch
U.S. crude ended the session lower on Tuesday, having fallen as much as 3 percent, weighed down by weaker stocks on Wall Street and skittish sentiment ahead of the expiry of the spot futures contract.
U.S. crude futures' October contract, which expired as the market's front-month at Tuesday's settlement, settled down 85 cents, or 1.8 percent, at $45.83, a barrel. It had risen more than 4 percent on Monday.
The front-month in Brent, the global oil benchmark, turned positive shortly before U.S. crude's settle. It traded up 13 cents at $49.05 by 2:34 p.m. EDT.
The dollar's rise to a nearly two-week high also weighed on oil, as crude and other dollar-denominated commodities became less affordable to users of the euro and other currencies.
Read MoreThis will be the next spark for a sell-off in oil
Losses in oil were limited though by a Reuters survey showing U.S. crude inventories had fallen almost a million barrels last week, following through with the previous week's decline of 2.1 million barrels.
Traders and investors will get more oil inventory data after market settlement, from industry group the American Petroleum Institute at 4:30 p.m. EDT (2030 GMT). Official stockpile figures are due Wednesday from the U.S. Energy Information Administration.
VIDEO4:1704:17Watch out: Here's the next bearish pressure on oilCapital Connection
VIDEO4:1804:18Two ways to cash in on oil's rebound: GartmanFast Money
VIDEO0:4500:45Oil up, spurred by OPEC commentsPower Lunch
Stocks on Wall Street hit a two-week low as investors tried to gauge when the Federal Reserve will raise U.S. interest rates.
"A of people are just nervous because the stock market is just so volatile that it's affecting all markets," said Christian Moreno, senior trading consultant at HighGround Trading Group in Chicago.
"Oil, for instance, could fundamentally go higher from signs of declining U.S. production. But with the stock market fluctuating, people are getting out of their positions early, translating into a risk-off day."
Read More It could be a long time before it's safe to buy oil
Oil rig reductions suggest a decline of more than 250,000 barrels per day in U.S. crude production between the second and fourth quarters, Goldman Sachs said in a report on Monday.
Oil prices have swung as much as 8 percent in a day in recent weeks on mixed readings of supply-demand. U.S. crude futures sunk to a 6½-year low of $37.75 on Aug. 24, only to hit a near one-month high of $49.33 a week later.
"The three-day price spike seen toward the end of August could easily be negated by an equivalent-sized three-day price plunge next month," said Jim Ritterbusch at oil markets advisory service Ritterbusch & Associates in North Wabash, Chicago.
"But, until then, a continued standoff between the bulls and the bears would appear likely."
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25b5ca321c4e6c2897138ccc30562283 | https://www.cnbc.com/2015/09/21/oil-prices-market-torn-between-bulls-and-bears.html | Oil prices seesaw as market torn between the bulls and bears | Oil prices seesaw as market torn between the bulls and bears
Getty Images
Oil markets have seesawed since the beginning of the week, torn between data that points towards a bottoming out of prices following an over 50 percent fall over the last year and bearish analysts who see more price falls as oversupply lingers on.
Crude oil prices fell on Tuesday as traders took profit following a 4 percent bounce in the previous session as conflicting market signals tore at prices.
Traders also focused on the soon-to-expire front-month contract in the West Texas Intermediate (WTI), which serves as the U.S. benchmark. WTI's October contract will go off the NYMEX board after Tuesday's settlement, and November will move up as the front-month.
U.S. West Texas Intermediate (WTI) crude futures were trading at $46.20 per barrel at 0200 GMT, down 48 cents, or one percent, from their last settlement. Globally traded Brent futures were at $48.47 per barrel, down 45 cents.
VIDEO4:1804:18Two ways to cash in on oil's rebound: GartmanFast Money
The dip in prices came after oil rallied on Monday, with U.S crude surging more than 4 percent on signs of declining stockpiles and a fall in drilling activity, which implies lower future oil production.
A Reuters poll on Monday forecast that U.S. crude inventories as a whole fell by 2.1 million barrels last week.
Technical market indicators pointed towards further price increases, with Reuters analyst Wang Tao seeing Brent rise to $49.70 per barrel based on Fibonacci retracement indicators while WTI could edge up to $47.78 a barrel.
Read MoreIt could be a long time before it's safe to buy oil
In another indicator that prices may have bottomed out, hedge funds continued to pare short positions in U.S. crude oil last week in a sign that they are no longer believe in big further price falls.
Yet many analysts stay oil prices still have space to fall, with several banks including Goldman Sachs and ANZ revising their price forecasts downward this month, arguing that it will take until at least 2016 or 2017 to remove a huge overhang that has been built up over the last years by soaring production just as demand slows.
"We think that WTI will trade down to below US$40/bbl over the next six months, before supply-side constraints start to be felt," ANZ bank said in its latest forecast revision published this week.
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97b1bf1ffc27f687936c6cd9200e8fe9 | https://www.cnbc.com/2015/09/21/power-play-sectors-that-will-outperform-now.html | Henry Stupp, CEO of Cherokee Inc. of Sherman Oaks (CHKE) which markets, manages and licenses worldwide apparel, footwear, home and accessory brands it owns. Brands include Cherokee, Sideout, Liz Lane, Carole Little, All That Jazz, Chorus Line, and others.Kirk McKoy | Los Angeles Times | Getty Images
Many investors are reluctant to step into the market, despite the recent correction. But while some of the headwinds have increased, you can still make money in this environment.
Art Hogan, chief market strategist at Wunderlich Securities, tells CNBC's "Power Lunch" on Monday the two sectors that should outperform are consumer discretionary and technology.
Read More Dow briefly adds 100 again as stocks cling to gains amid biotech plunge
"The consumer continues to have 3 key tailwinds in jobs, gas prices and house prices all leading to historically high confidence. Much of Technology suffers less with the headwinds of rising interest rates/ strong dollar and a slowing China," Hogan said.
Some of the stocks Hogan recommends are Cherokee, Tableau Software and Hortonworks.
Cherokee, Tableau Software are higher during trading, while Hortonworks is lower.
Disclaimer
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6db40caf477dd9e77f784904a51068c4 | https://www.cnbc.com/2015/09/21/rapper-snoop-dogg-starts-site-focused-on-weed.html | Rapper Snoop Dogg starts site focused on weed | Rapper Snoop Dogg starts site focused on weed
Recording artist Snoop Dogg speaks onstage during day one of TechCrunch Disrupt SF 2015 at Pier 70 on September 21, 2015 in San Francisco, California.Getty Images
Snoop Dogg is lighting up a new venture. The rapper founded an online startup that focuses on the cannabis lifestyle, VentureBeat reported Monday. (Tweet this)
The website, MerryJane.com, will launch in October and include content from different partners, including actor Seth Rogan. Only 420 people will be allowed to participate in the site's beta testing, per the report.
"I enjoy it for medical reasons and it's a peace situation for me. I always see beautiful things around me. I've always been an advocate for me," Snoop told VentureBeat.
Tweet
Merry Jane will offer original shows, including interviews with people who share their experiences with marijuana. VentureBeat reports that advertising will be a core part of the site's business model.
Read the full coverage at VentureBeat.
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a01f41ca26f29248f113703ce858969a | https://www.cnbc.com/2015/09/21/rocky-tech-stocks-wont-change-vc-funding-expert.html | Rocky tech stocks won't change VC funding: Expert | Rocky tech stocks won't change VC funding: Expert
VIDEO3:0203:02Yuri Milner's tech viewPower Lunch
Rocky trading in technology stocks could force some companies to wait to go public, but truly innovative firms should continue to enjoy strong support from private donors, venture capitalist Yuri Milner said on Monday.
"We usually observe that the private side is following the public side. We have not seen the full extent of that yet. There is always room for a very disruptive company to not be affected by volatility," the founder of investment firm DST Global said in a CNBC "Power Lunch" interview.
A man works at the NASDAQ exchange in New York.Getty Images
"Probably what's going to happen is that the IPO will be delayed and then the private markets, in this case, will play the most significant role in continuing funding those companies that cannot access the public markets.
Read MoreStart-up spending 'extremely wasteful': VC
The tech-heavy Nasdaq composite has fallen more than 5 percent in the last three months in up-and-down trading. The index was choppy on Monday, as well, as biotechnology stocks took a hit on comments from presidential candidate Hillary Clinton.
Milner noted that large technology companies such as Facebook, Google and Alibaba look "fairly priced." However, he contended that smaller-cap technology names will continue to see volatility moving forward.
Read MoreHow start-ups get funded
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8488bc3d99963b9c3840415b0968dab3 | https://www.cnbc.com/2015/09/21/skype-says-it-is-fixing-status-problem.html | Skype says it is fixing status problem | Skype says it is fixing status problem
Blend Images/Ariel Skelley | Vetta | Getty Images
Skype, Microsoft's online telephone and video service, said it has found and now rectifying its problems that some users were facing Monday.
Tweet
"We have identified the network issue which prevented users from logging in and using Skype today," the company said in a blog post. "We're in the process of reconnecting our users, and focused on restoring full service. The issue did not affect Skype for Business users."
Earlier, Monday some users were unable to make calls because their settings show that they and their contacts are off line, even when they are logged in.
Affected users were unable to change their status, but they can use instant messaging and Skype for Web services, Skype said.
--CNBC.com contributed to this report.
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1f758e7ab1e39b75dd7904fb7ce0a5fd | https://www.cnbc.com/2015/09/21/standard-chartered-the-iranian-connection.html | Standard Chartered: The Iranian connection | Standard Chartered: The Iranian connection
An illuminated Standard Chartered Plc logo is displayed on the Standard Chartered Bank building.Jerome Favre | Bloomberg | Getty Images
The expletive-laden exclamation attributed to a senior Standard Chartered executive in 2006 may well come back to haunt the British bank. "You f***ing Americans. Who are you to tell us, the rest of the world, that we're not going to deal with Iranians?"
For US authorities, who included the quote in a legal filing, the statement came to define StanChart's "obvious contempt" for American banking regulations, including sanctions designed to cut Iran off from access to the US dollar.
Nine years on, after paying nearly $1 billion in fines to US regulators and law enforcement agencies for sanction breaches and compliance failures, StanChart seems no closer to ending its legal problems.
A Financial Times investigation has identified transactions involving Iran that could put the bank at risk of severe penalties ranging from further fines to suspension or loss of its crucial dollar clearing licence.
Documents seen by the FT suggest that StanChart continued to seek new business from Iranian and Iran-connected companies after it had committed in 2007 to stop working with such clients. These activities include foreign exchange transactions that, people familiar with StanChart operations say, would have involved the US dollar. The documents suggest the bank — a few months after a costly settlement with US authorities in 2012 — was still internally reviewing its client list and was unable to determine in certain cases whether customers were Iranian or not.
For Bill Winters, the American former JPMorgan investment banker who took over as StanChart's chief executive in June, the stakes could hardly be higher. The London-listed lender, that specialises in Asia, the Middle East and Africa, is already grappling with slowing growth in emerging markets and a slide in commodity prices.
While it has relatively small operations in the US, the loss of its dollar clearing licence would deal a crippling blow to StanChart's ability to finance the trade, energy and cross-border activities that have become its main focus.
Suspending the dollar clearing rights for banks accused of breaching sanctions is a rare punishment. But US regulators have cracked down hard on institutions for breaching sanctions on Iran, amid concerns about money flowing to the country's nuclear programme or to militant Islamist organisations such as Hizbollah in Lebanon or the Palestinian group, Hamas.
The US has mostly relied on levying heavy fines against non-US banks for using dollars to do business with Iran — frequently causing controversy in those banks' home countries. BNP Paribas last year paid $8.9 billion in fines and had some dollar clearing rights suspended temporarily for such breaches, prompting angry accusations from French politicians of US over-reach.
'Rogue institution'
The US Department of Justice, the Manhattan district attorney, the Federal Reserve, the New York Department of Financial Services (DFS) and most recently, the New York attorney-general's office, are all investigating StanChart for potential new sanctions breaches.
The probes, most of which became public late last year, are scrutinising whether StanChart breached sanctions after the period covered by its 2012 settlement, when the bank declared it had "ceased all new business with Iranian customers in any currency" five years earlier. A pivotal issue is whether senior executives condoned the bank's continuing business with Iran, according to people familiar with the investigations.
StanChart — which closed its Tehran office in May 2012 — said, in a statement to the Financial Times, that it was co-operating with the investigation into "possible violations of US sanctions". It added that "following its decision to exit the Iranian business in 2007 the group had a number of legacy obligations including dormant accounts, outstanding loans and trade-finance agreements. Those legacy obligations have been handled in an appropriate manner in non-US currencies and since 2007 it has been the group's policy not to pursue any new business with known Iranian entities."
The bank added: "While we have made progress on our controls, this is a multiyear effort that requires sustained investment and management attention."
VIDEO2:1402:14National security concerns over Iran dealPower Lunch
In 2012, the threat by US regulators to withdraw StanChart's dollar clearing licence led it to agree to pay $667 million to settle allegations of sanction breaches up to 2007. At the time, the DFS, then headed by Benjamin Lawsky, shocked the bank by accusing it of being a "rogue institution" whose actions left the US financial system "vulnerable to terrorists, weapons dealers, drug kingpins and corrupt regimes".
With shares in StanChart trading near 10-year lows, the latest investigations provide another big challenge for Mr Winters, who succeeded Peter Sands as StanChart's chief executive. It also indicates that even as US President Barack Obama pushes for sanctions against Iran to be relaxed in return for curbs on its nuclear programme, there are no signs of US regulators losing their zeal for pursuing past transgressions involving the Islamic republic.
Tighter sanctions
The material reviewed by the FT depicts a bank — one of the few foreign lenders with a licence to operate in the country — determined to keep working with Iranian companies.
The status of numerous Iranian and Iran-connected entities was still being reviewed by StanChart as late as 2013, according to documents seen by the FT. These included entities that had internal "markers" and "blocks" placed against them, a way for the bank to flag up concern about links to Tehran.
Many accounts belonging to Iranian or Iran-connected entities were indeed closed by 2007, as StanChart promised. But some, like Bank Saderat — which had sanctions imposed in 2006, or Bank Sepah — still had open accounts with no markers against them. According to lawyers consulted by the FT, it is not illegal to hold accounts for entities under sanctions as long as they remain frozen.
More from the Financial Times:
StanChart rebounds on overdone pessimism StanChart slides on restructuring fears StanChart whistleblower aids US probe
Clients generating revenue included IFIC Holding AG, which in August 2010 was identified by the US Treasury as the German arm of an Iran government-owned entity and put under sanctions. An internal StanChart performance report, dated March 2012, that records transactions with Iran-connected companies — labelled "Iran Group" — cites revenue for IFIC Holding AG.
Non-US banks such as StanChart are allowed to conduct transactions with companies on the US sanctions list provided no US persons are involved and they do not involve the American financial system. However, in 2010 the US tightened its sanctions regime, introducing measures that gave US regulators the power to punish foreign banks engaging with Iran even if the contested transaction did not involve the US financial system.
The move was a warning to companies that by choosing to do business with Iran they risk being cut out of the US financial system. Given the dollar's ubiquity, this risk has led many international banks to halt business with US-sanctioned entities altogether.
Top performing clients in the so-called "Iran Group" also included Mapna International FZE, a subsidiary of Mapna Group, a sprawling Iranian industrial conglomerate, according to documents seen by the FT.
Senior StanChart executives outlined one method to maintain the business in a note to staff dated October 2008, a day after the US placed the Export Development Bank of Iran on the sanctions list.
StanChart was keen to avoid "delay or financial loss" to its Iranian clients. "We are working with the Designated Parties [companies under US sanctions] to settle outstanding USD obligations in an alternative freely convertible currency", the memo says.
It adds that any foreign exchange deal to "convert the alternative currency into USD must be for the account of and in the name of the beneficiary and not for the account of the Designated Party, and any FX risk will be for account of the beneficiary".
While this technique — finding currencies other than the US dollar to conclude transactions with Iranian clients — may not have been a breach of US sanctions, a former member of the bank's Dubai team says it was "against the spirit of the sanctions".
An email written in 2009 by a senior StanChart manager in Dubai, seen by the FT, shows a list of potential target clients, including the National Iranian Oil Company, which at the time was under sanctions.
These potential new violations have angered a host of agencies, from the DoJ to the New York Fed and DFS. Although settlement talks have yet to begin, the bank is expected to be hit with harsh penalties — unless it can explain its conduct — because it is seen as a repeat offender, people familiar with the case say. In August 2014, New York's DFS fined StanChart $300 million for failing to resolve problems with its anti-money laundering compliance system. The regulator forced it to sell or shut as many as 8,000 small business accounts in the United Arab Emirates and banned it from clearing US dollar transactions for some Hong Kong clients.
Authorities are still in the process of obtaining information from the bank about the current probe, the people add. A deal, if it happens, could come at the end of this year or early in 2016.
Read MoreStanChart PE arm invests in Chinese lender Dianrong
A whistleblower emerges
The FT has found that the US investigation into StanChart did not close after the 2012 settlement. Shortly after the deal was agreed, a whistleblower came forward with information that gave US regulators and law enforcement new ammunition against the bank, according to people familiar with the matter.
An internal StanChart document seen by the FT shows that the bank is again facing questions from regulators and law enforcement about its dealings with Iran, reaching back to at least 2005 — a period that had already been reviewed as part of the prior investigation.
A separate line of inquiry emerged from the authorities' investigation into BNP Paribas. Among the French bank's violations were transactions with Caspian Petrochemical FZE, an Iran-owned company based in Dubai, which acted as a front for an Iranian based energy group in Tehran, and was engaged in shipping liquefied petroleum gas.
Evidence from the BNP probe led investigators to believe that StanChart may also have breached sanctions in its transactions with Caspian Petrochemical FZE.
By March 2013 high-ranking StanChart executives were in denial about the gravity of the bank's alleged sanctions busting. At a press conference that month, Sir John Peace, who has chaired the bank for six years, called its actions "clerical errors or mistakes" and denied that the bank had "wilfully" breached sanctions. Shortly afterward he retracted his statement and apologised after a rebuke by the DoJ and the Manhattan district attorney's office.
Around the same time, an internal StanChart team worked alongside experts from Promontory — the financial consultancy that was recently fined $15 million in relation to its prior work with StanChart — to resolve a series of requests and subpoenas from US law enforcement authorities.
The teams also reviewed the due diligence done by the bank on clients at its Dubai branch — a particular focus of the US authorities' continuing inquiry — and researched whether existing clients were Iranian or had Iranian connections. The emirate has long been a convenient hub for Iranians and those wanting to do business with Tehran.
Read MoreFrance heads off to court Iran business
Of particular interest to the authorities was the bank's online trading system, known as OLT3 (On-line Treasury), according to documents seen by the FT. It allowed approved customers to conduct trades online, including foreign exchange transactions. As StanChart's team gathered information to respond to US requests, it noted significant flaws in the system, to which Bank Saderat at one point had direct access.
The system did not record timing of logins by clients and provided no audit trail of client access, according to a document seen by the FT. It also indicates that a former Bank Saderat Iran employee with direct access to the OLT3 had left the bank and moved to a UAE company but kept the same user ID.
It is unclear whether StanChart reported this flaw to the authorities of its own accord. The document says: "all 'Iranian' clients who received direct access to the system were domiciled outside of Iran".
A former senior executive at StanChart, speaking on condition of anonymity, described a number of failings at the bank that led to the repeated probes. He described a "cavalier" culture, where management encouraged the sales staff to go after new business aggressively in frontier markets such as Iran and Iraq. The bank also failed to invest enough in compliance, he says.
StanChart had sometimes been tricked into dealing with Iranian entities, such as by a client with three passports who only showed the two non-Iranian documents to the bank, he adds.
But StanChart was also often let down by its technology. "The bank really isn't very good at technology and often the system really wasn't performing."
Former staff members of StanChart in Dubai have told the FT the bank had global policies in place and they had to turn down business because of those policies of not dealing with sanctioned entities.
But as he reported disappointing results in August, Mr Winters said he intended to overhaul the bank's culture and bolster its compliance operations, while warning of difficult times ahead.
In a possible signal of his priorities, one of Mr Winters' first trips was to meet Mr Lawsky in his New York office.
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111cc94d990714362a9e04af1298d642 | https://www.cnbc.com/2015/09/21/start-up-spending-extremely-wasteful-vc.html | Start-up spending 'extremely wasteful': VC | Start-up spending 'extremely wasteful': VC
VIDEO4:0704:07Tech's 'insane burn rates'Squawk Alley
Technology companies flush with cash are renowned for luring top engineers with cushy perks like catered lunches, free gym memberships and pingpong tables. But as Silicon Valley gets crowded with unicorn companies valued at $1 billion or more, one veteran venture capitalist warns the "party" won't last forever.
"I suspect there's way too much capital in the system," Chamath Palihapitiya of The Social+Capital Partnership said Monday on CNBC's "Squawk Alley." "Many companies that frankly shouldn't get funded will have a longer half life than they probably should. We have this crawl of capital that leaks into these companies and keeps bad ideas up a little bit too long right now."
The perks of working at a start-up
Massages, wine-tasting: Hiring perks in Silicon Valley are getting lavish
Palihapitiya said there needs to be a more disciplined approach, where founders funnel money toward hiring top talent —not buying real estate—and retain staff with great ideas, not perks.
"When you are forced to focus on the quality of offices, or at things other than the product, I think what you're really saying is, 'We don't have a great product,'" he said. "So you're going to spend money on things that don't matter. When we reduce ourselves to selling on window dressings, we are basically saying that we don't believe in what we're doing."
These aren't the first choice words Silicon Valley has heard from Palihapitiya. The veteran venture capitalist riffed on the future of start-up funding last week at an event in San Francisco hosted by industry group StrictlyVC. And Palihapitiya is far from the first technology investor to raise his eyebrows at recent Bay Area trends.
Read More Bubble may claim 1/3 of start-ups in a year: VC
"There's no question that we're in a private market valuation bubble," Theresia Gouw of Aspect Ventures told CNBC earlier this month. "There's 117 privately valued billion-dollar-plus companies. ... There's no question those companies are worth less than their public market counterparts."
Palihapitiya also said entering the public market can show investors that a company is serious about gaining credibility and becoming a leader within its market. Investors, in turn, should focus on business models beyond services that cater to millennials, he said.
"Great ideas win," Palihapitiya said. "The reality is, we need to separate ourselves from the window dressings that we think drive value, and focus on product market fit and ingenuity that actually drives value."
Technology IPOs at lowest since 2009
Guess who a tech downturn could hurt the most
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69506fb9dab23667f421aa56c55701ac | https://www.cnbc.com/2015/09/21/steve-blitz-fed-not-the-main-driver-for-market-selloff.html | Steve Blitz: Fed not the main driver for market selloff | Steve Blitz: Fed not the main driver for market selloff
VIDEO2:4602:46Global earnings, not Yellen hit US markets: ProSquawk Box
The Fed's decision on monetary policy was far from the main reason U.S. equities sank Friday, ITG Investment Research's Steve Blitz said Monday.
"The big issue has been a global slowdown in earnings. When you look at the valuation of the equity market, it's very high relative to profits," the firm's chief economist said in a CNBC "Squawk Box" interview. "I think that the narrative that what the Fed did or didn't do on Thursday was the reason the equity market selloff is a bit of a false narrative."
The U.S. central bank decided Thursday to keep its main interest rate near zero percent, citing recent volatility in global financial markets as a reason to hold off on hiking rates.
"Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term," the Fed said in its announcement.
Read More I would have dissented on rate hold: Fed's Bullard
The major U.S. indexes are near the flat line for the month and have fallen more than 5 percent in the last three months.
"[Fed Chair] Janet Yellen basically told [the markets] what everybody knew and there isn't a fix for the central bank to do against that. All they can do is what they did," Blitz said.
Federal Reserve Chair Janet Yellen holds a news conference following the Federal Open Market Committee meeting in Washington September 17, 2015.Jonathan Ernst | Reuters
There is also another reason for concern, Southwest Securities managing director Mark Grant said on "Squawk Box."
"For the whole year, we've gone nowhere," Grant said, adding that the Dow Jones industrial average is down 8.07 percent in 2015.
The S&P 500 is down 4.9 percent this year, while the Nasdaq composite is 1.93 percent.
Read More Fed puts bite back in FANG stocks: Technician
Grant added that another round of quantitative easing by the Fed might not help financial markets this time.
"In America, when we had quantitative easing, the equity markets went up," he said, also pointing out that European equities have lost about $600 billion of their value since the European Central Bank began its QE program.
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1e3bdb751dfce6f1b84437f210019366 | https://www.cnbc.com/2015/09/21/the-gopro-debate-headed-for-personal-device-graveyard.html | The GoPro debate: Headed for personal device graveyard? | The GoPro debate: Headed for personal device graveyard?
VIDEO3:3403:34GoPro no one-trick pony, could hit $105: ProClosing Bell
Is go-anywhere camera maker GoPro a "one product wonder" doomed to go the way of Blackberry phones? Or an innovative product that can complement the ubiquitous smartphone?
The debate played out in the markets Monday after analysts publicly decried the stock in a popular investing publication. Share prices of GoPro declined more than 8 percent Monday afternoon to $32 per share, after financial magazine Barron's published an article estimating the stock would fall to $25, close to its public offering price.
GoPro jumps into virtual reality and drones
GoPro launches smallest, lightest camera yet
The action cameras, and their first-person viral videos, currently rake in top sales for video cameras. But while one analyst told CNBC that new investments, like virtual reality, could pay off for the company, another said the GoPro needs a new product to stay relevant as smartphones improve.
"The smartphone, popularizing of social networking and imaging is actually a boon for GoPro, because GoPro is a perfect companion device for anybody whose an athlete, has an active lifestyle, has children," Alex Gauna, managing director at JMP Securities, told CNBC's "Closing Bell" Monday. "Those are the things you want to be capturing with a GoPro, and you're not going to be risking your investment in smartphone hardware."
Read More GoPro is a 'one-trick pony,' expert says
A GoPro Hero4 cameraGetty Images
The Barron's article, however, reported that as phonemakers such as Apple released better cameras, GoPro shares actually tended to slip. That hasn't been the only disappointment for investors, another analyst said.
"Even GoPro knew when they went public, they stressed it was more than just the camera, it was the media," Chris Johnson, director of research at JK Investment Group, told CNBC. "When you look at the media side of things, their website traffic peaked last December and has been going down."
Though GoPro shares are now down about $50 for the year, Gauna said he's still bullish on the stock.
"There really is no competition showing up," Gauna said. "It still is a brand that can go a long, long way."
Disclosure: JMP Securities is a market maker for GoPro, was involved in the company's initial public offering, and intends to seek compensation for investment banking services from GoPro.
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179a2acffbb9204713c47fff1e5d2fd1 | https://www.cnbc.com/2015/09/21/these-disappointing-stocks-could-be-bouncing-back.html | These disappointing stocks could be bouncing back | These disappointing stocks could be bouncing back
VIDEO3:0103:01Retail staging a comeback?Trading Nation
As the retail sector gained Monday, one group of suffering stocks led the way, jumping 1.2 percent.
The multiline retail stock group, which includes names such as Target, Dollar Tree and Nordstrom, has fallen 5 percent year to date despite Monday's bounce. While the retail sector as a whole has been boosted by outperforming Internet companies, such as Netflix and Amazon, brick-and-mortar stores have struggled to stay competitive.
Read More The tale of the two kinds of retailers
However, Andrew Burkly of Oppenheimer said multiline retail as a group has the strongest correlation to weak oil prices.
The average national gas price recently fell to $2.29 from $2.33 a week ago, according to AAA's Daily Fuel Gauge, which should theoretically translate into more available funds for consumer discretionary spending.
"As gas prices stay low ... I think that's a good tail wind for the consumer and for this group," Burkly said Monday on CNBC's "Trading Nation."
Burkly said he sees more potential in growth for traditional department stores such as Target, rather than dollar stores. Target closed up more than 2 percent Monday.
Read More
Barron's wrote over the weekend that Dollar Tree should be expected to outperform compared to market estimates, based on long-term gains from its acquisition of discount competitor Family Dollar. The company's stock rose 1.8 percent on Monday.
More generally, technical analyst Craig Johnson of Piper Jaffray said the retail sector is positioned to perform well into the next year. The retail sector ETF, XRT, has been on an uptrend since 2013 and is moving higher off a key level of support at about $45, he said.
"it looks like it's at an interesting inflection point where it's about to turn higher," Johnson said Monday on "Trading Nation."
Specific industries within retail that Johnson is watching include auto parts, housing, restaurants and athleticwear.
"I like what I see happening in the retail space," Johnson said. "Back-to-school numbers were good, it seems like the consumer is coming back and we're probably setting ourselves up for a pretty good holiday season."
Want to be a part of the Trading Nation? If you'd like to call into our live Wednesday show, email your name, number, and a question to TradingNation@cnbc.com
Disclaimer
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ecac2f8ce698f2b04645638302ed1dff | https://www.cnbc.com/2015/09/21/us-bonds-lose-their-shine.html | US bond prices fall on stock gains, Fed officials' remarks | US bond prices fall on stock gains, Fed officials' remarks
VIDEO3:1303:13Here's where the Fed is confusing marketsCapital Connection
U.S. Treasury prices fell on Monday amid a rebound in U.S. equity markets and as comments by two top Federal Reserve officials, suggesting a possible year-end rate increase, spurred traders to reduce their bond holdings.
Global stock markets tumbled late last week after the U.S. central bank stuck to its near-zero interest rate policy due to concerns about global economic growth and market volatility.
On Friday, short-to-medium U.S. yields fell to three-week lows on bets the Fed may not raise interest rates until 2016.
"It's a reversal of the dovish tone of the FOMC meeting," said Subadra Rajappa, head of U.S. rates strategy at SG Corporate & Investment Banking in New York.
Treasurys
Traders are on watch for further clues this week that may indicate whether the Fed is still on track to raise rates by year-end.
Over the weekend, San Francisco Fed President John Williams said the Fed's decision to leave rates near zero was a "close call."
On Monday, St. Louis Fed chief James Bullard told CNBC television there was "a powerful case to be made" for beginning to tighten policy due to an improving domestic economy.
Atlanta Fed President Dennis Lockhart also spoke on Monday, saying he was comfortable with a rate hike later this year.
In the meantime, major U.S. stock indexes rose about 0.8 percent in early trading as some traders stepped back into risky assets following back-to-back days of losses.
Read MoreWhat can Yellen and Xi do for markets?
Investors will face $90 billion worth of fixed-rate debt supply, starting with a $26 billion auction of new two-year notes on Tuesday.
On the data front, traders brushed off a steeper-than-forecast 4.8 percent drop in existing home sales in August.
On the open market, benchmark 10-year Treasuries notes were yielding 2.1976 percent, up 6 basis points from late on Friday.
were down 2/32 in price for a yield of 0.7103 percent, up 3 basis points from Friday, while the 30-year bond was down 1-10/32 in price to yield 3.0151 percent, up 8 basis points on the day.
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4c6fcbe72d1a078040277b6fd28b274c | https://www.cnbc.com/2015/09/21/us-markets.html | Dow ends up triple digits; biotechs have worst day of 2015 | Dow ends up triple digits; biotechs have worst day of 2015
VIDEO0:5100:51Biotechs drop after Hillary tweetSquawk Alley
VIDEO4:1204:12Cashin: Fed's 'party line' talk keeps 2015 hike aliveWorld Economy
VIDEO4:2904:29Pisani's market open: Very good start to the week
U.S. stocks closed mixed Monday as investors weighed a decline in biotechs and eyed comments from Federal Reserve speakers. (Tweet This)
The Dow Jones industrial average and S&P 500 closed higher, recovering part of their Friday selloff. The Nasdaq composite eked out a 1.7-point gain, weighed by a plunge in biotechs.
The iShares Nasdaq biotechnology ETF (IBB) closed down 4.48 percent for its worst day since Dec. 23, 2014, as biotech stocks plunged on renewed attention on controversy over large price increases on certain drugs.
"The sector is very vulnerable because of the high valuations it trades at, so any bit of regulatory pressure or lower animal spirits in the market have the potential for IBB to have the day they're experiencing today," said Bradd Kern, managing director at Armored Wolf, which is short IBB.
The sharp decline in biotechs temporarily pushed the S&P 500 and Nasdaq composite into negative territory.
Health care closed down 1.38 percent as the only decliner in the S&P 500. Merck, Pfizer and Johnson & Johnson were the greatest blue chip decliners.
"Hillary (Clinton) is tweeting that she's going to take on specialty pharma," said Paul Yook, portfolio manager at BioShares Funds. "One of the biggest fears in biotech is prices."
The New York Times reported Monday how a firm raised the price of a 62-year-old drug from $13.50 a tablet to $750 overnight. The news prompted Clinton to tweet she would outline a plan Tuesday to take on price gouging.
Tweet
Stocks failed to completely recoup intraday gains of more than 1 percent. The Dow closed up about 125 points after earlier rising as much as 194 points.
"I think there's still some hesitation on the part of investors. I think people want to be positive but we keep running up resistance in the short-term," said Robert Pavlik, chief market strategist at Boston Private Wealth. He is watching 1,995 to 2,000 on the S&P 500.
"The market is trying to watch these technical levels. Everybody seems to be a technician," Pavlik said. "The lows of August have still held. We're in a bit of an uptrend and we're in a pattern that could be broken either way."
In the close, financials led S&P 500 advancers, while Goldman Sachs topped IBM topped as the greatest boost to the blue chip index.
"There's really not much else to grab onto," said Peter Boockvar, chief market strategist at The Lindsey Group. "I think people are still digesting what the Fed did last week, preparing for corporate earnings and waiting for more Fed speakers."
The Federal Reserve's decision to delay an interest rate increase last week was largely a "risk management" exercise to be sure recent market volatility would not become a drag on the U.S. economy, Atlanta Fed President Dennis Lockhart said in a Reuters report Monday. He said he still expects the Fed to raise rates this year.
"He's trying to send the message 'we're worried but not overly worried,'" said Peter Cardillo, chief market economist at Rockwell Global Capital. "The last thing the Fed wants is if the market falls apart (and hits) confidence."
Fed Chair Janet Yellen is scheduled to speakThursday.
Read MoreWhat can Yellen and Xi do for markets
"The direction (of stocks) will be positive. Part of that is some rhetoric over the weekend from three Fed speakers that gave a much more nuanced and balanced tone to the dovish Fed statement that surprised investors," Art Hogan, chief market strategist at Wunderlich Securities, said ahead of the market open.
U.S. stock index futures held higher after St. Louis Federal Reserve President James Bullard said he would have dissented on the central bank's decision to hold rates low.
"There's a powerful case to be made that it's time to raise interest rates," he told CNBC's "Squawk Box" in an interview.
Doug Cote, chief market strategist at Voya Investment Management, said with policymakers pointing overseas "it actually created a little more uncertainty around what the Fed is watching."
"Does the Fed see something we don't see in the emerging markets and the developed world?" he said, noting the key for him is U.S. economic fundamentals, which remain in a positive trajectory.
Ahead of other housing data due in the week, more than expected to an annual rate of 5.31 million, a 4.8 percent drop.
"What we did see is disappointing. There are two areas that we've relied on for slow and steady improvement — autos and housing. Housing (had) a decent setback," said Jack Ablin, chief investment officer at BMO Private Bank.
He noted the decline was off several strong months of growth in existing home sales.
The U.S. dollar traded one percent higher against major world currencies, with the euro below $1.12 and the yen near 120.5 yen against the greenback.
Treasury yields held above recent lows, with the 10-year yield at 2.20 percent and the at 0.70 percent.
Analysts also noted support for stocks from gains in European markets and higher oil prices.
Crude settled up $2.00, or 4.48 percent, at $46.68 a barrel.
European stocks closed higher, shaking off a near 2-percent decline in the Nikkei and a 0.75 percent loss in the Hang Seng. Mainland Chinese stocks closed nearly 2 percent higher.
Read MoreTsipras wins: Next 100 days key to Greece's fate
Greece is also a focus following an election on Sunday in which Alexis Tsipras' left-wing Syriza party returned to power with an unexpected election win, with a mandate to implement a bailout plan.
Stocks are still attempting to recover from correction levels hit in late August. The major averages closed more than 1 percent lower Friday, their worst daily performance since Sept. 1, as investors digested the implications of the Federal Reserve's decision to keep short-term interest rates low. The central bank also added to concerns about global growth slowdown.
There's "still probably a lot of indecision on market participants so I'll leave a little room (for stocks to fluctuate)," said Mark Luschini, chief investment strategist at Janney Montgomery Scott. "The uncertainty hasn't been removed by the Fed last week."
On Friday, the Dow Jones industrial average and Russell 2000 closed more than 10 percent away from their 52-week highs, back in correction territory. The two indices failed to break out of correction mode Monday.
Read MoreEarly movers: LEN, AAPL, ATML, BUD, LULU & more
The S&P 500 and Nasdaq composite traded less than 8 percent below their 52-week highs.
"For the first time in this recovery the market didn't respond (positively) to the Fed keeping rates low," Boockvar said. He noted the change in response could indicate markets have "potentially" entered a bear market.
Major U.S. Indexes
The Dow Jones Industrial Average closed up 125.61 points, or 0.77 percent, at 16,510.19, with Apple leading advancers and Merck leading decliners.
The Dow transports trimmed gains to close about 0.79 percent higher as Alaska Air led about two-thirds of constituents higher.
The closed up 8.94 points, or 0.46 percent, at 1,966.97, with financials leading nine sectors higher and health care the only decliner.
The Nasdaq closed up 1.73 points, or 0.04 percent, at 4,828.95.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded below 22.
About three stocks advanced for every two decliners on the New York Stock Exchange, with an exchange volume of 821 million and a composite volume of 3.2 billion in the close.
Gold settled down $5.00 at $1,133.10 an ounce.
On tap this week:
Monday
Earnings: Red Hat
Tuesday
Earnings: Autozone, CarMax, Carnival, Darden, General Mills
9:00 a.m.: FHFA home prices
7:00 p.m.: Atlanta Fed's Lockhart
Wednesday
Earnings: Steelcase, Worthington Industries
9:45 a.m.: Manufacturing PMI
12:30 pm Atlanta Fed's Lockhart
Thursday
Earnings: KB Home, Nike, Accenture, Bed Bath & Beyond, Pier 1 Imports, Jabil Circuit
8:30 a.m.: Initial claims
8:30 a.m.: Durable goods
10:00 a.m.: New home sales
5:00 p.m.: Fed Chair Janet Yellen on inflation/policy at University of Massachusetts
Friday
Earnings: Blackberry
8:30 a.m.: Real GDP Q2 (third)
9:15 a.m.: St. Louis Fed's Bullard
1:25 p.m.: Kansas City Fed President Esther George
More From CNBC.com:
Altman: Government shutdown probable—here's whyUBS' Weber sticks to his guns on Fed hike callMarket timer: Don't have 'October phobia'
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aab44a6c675cf4d234f1cde5a8ea093d | https://www.cnbc.com/2015/09/21/us-stocks-set-for-tepid-start.html | Dow futures rise 100 points after Bullard remarks | Dow futures rise 100 points after Bullard remarks
U.S. stocks were set for a higher start on Monday after St. Louis Federal Reserve President James Bullard said he would have dissented on the central bank's decision to hold rates low.
"There's a powerful case to be made that it's time to raise interest rates," he told CNBC's "Squawk Box" in an interview.
Other Fed speakers this week include Atlanta Fed President Dennis Lockhart and Fed Chair Janet Yellen.
Wall Street shares closed sharply lower on Friday as investors assessed the implications of the Fed's decision to keep interest rates at record low levels for a little longer.
Traders work on the floor of the New York Stock Exchange.Getty Images
That sell-off weighed on Asian stocks, which closed broadly lower on Monday with the exception of shares in Shanghai, which ended the day almost 2 percent higher. European shares turned higher after opening the week mixed, with the STOXX Europe 600 up 1.2 percent.
Against this backdrop, U.S. stock futures were mixed before turning higher, with Dow Jones futures briefly rising about 100 points.
Oil prices also held higher, with crude and brent both jumping more than 2 percent.
The U.S. dollar also traded more than half a percent higher against major world currencies.
August existing home sales data is due out at 10:00 a.m. ET.
Elsewhere, there was some focus on Greece following an election on Sunday. Alexis Tsipras' left-wing Syriza party returned to power with an unexpected election win, with a mandate to implement a bailout plan.
Read More Early movers: LEN, AAPL, ATML, BUD, LULU & more
Tech giant Apple meanwhile said on Sunday that it was cleaning up its iOS App Store to remove malicious programs on the iPhone and iPad found in the first large-scale attack on the mobile software store.
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f88a1a374df8fd5813d123168b954773 | https://www.cnbc.com/2015/09/21/vix-charts-predict-trend-changes-direction-fed-rate-calls.html | Charting Asia | Charting Asia
Getty Images
The VIX, or CBOE Volatility Index, is often called the fear index, and it's an apt description but often for all the wrong reasons.
The VIX is a very useful guide to the expectation of significant change in the market. There are times, such as on September 14, when the source of the fear can be easily identified. The rapid decline in the VIX was a clear message that Janet Yellen would not raise interest rates at the FOMC meeting, and I made that call on on CNBC's Street Signs.
Readers have asked since why I forecast the Fed's decision not to hike with such confidence. The answer is, it starts with strong understanding of the VIX.
Technically it's a popular measure of the implied volatility of S&P 500 index options. The VIX is calculated by the Chicago Board Options Exchange (CBOE) and represents a measure of the market's expectation of stock market volatility over the mext 30-day period.
The key words are "expectation of volatility." It says nothing about the direction of said volatility. High VIX readings can be associated with both bullish and bearish conditions. As a measure of expected future volatility, the higher readings tell us that traders are anticipating an increase in market volatility, which is usually associated with a trend change.
The VIX by itself is not particularly useful. But combine the VIX with other chart analysis methods and the trader has a good idea of the direction of the volatility move i.e. it tells the trader about the direction of the trend change, or trend acceleration.
If I am long and an uptrend is developing then a high VIX reading is nothing to fear. If I am long and the market is showing some signs of end-of-trend behavior and the VIX gives a high reading, then I need to be fearful.
Read MoreInvesting legend Bogle: Economy is 'not vibrant'
This takes us back to the recent VIX chart, which showed a dramatic decline is the VIX reading. What had the market been afraid of that drove the VIX to the previous highs? The upcoming FOMC meeting and the potential for an interest rate rise was the primary fear in the market. There was a high expectation of volatility and the consequent potential for a trend change or acceleration.
The, suddenly the VIX dropped. This gave a clear indication that the market did not expect a rise in interest rates. It expected the situation to remain unchanged. No need to volatility and mo need to anticipate a significant potential for trend change.
The VIX indicator gave traders the answer on what the Fed's move would be long before it became reality. The VIX, used properly, assists traders to anticipate the potential for significant trend change. Combined with other chart analysis methods it provides a significant trading edge, which is nothing to be fearful of.
Daryl Guppy is a trader and author of Trend Trading: The 36 Strategies of the Chinese for Financial Traders, available at www.guppytraders.com. He is a regular guest on CNBC Asia's Squawk Box and a speaker at trading conferences in China, Asia, Australia and Europe.
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ea0c766f06cfd7b55fd90fc04690155f | https://www.cnbc.com/2015/09/21/vw-scandal-could-keep-it-from-reaching-no-1.html | VW scandal could keep it from reaching No. 1 | VW scandal could keep it from reaching No. 1
VIDEO2:4002:40VW runs afoul of EPA, shares hammeredSquawk Box
This is not just another recall where an automaker will have to weather a few days of negative headlines before the matter fades from the public's attention.
Over the weekend, Volkswagen took the highly unusual step of suspending sales of certain 2015 clean diesel models, while it figures out how to fix cars with software designed to cheat clean air standards.
It is still unclear how long the stop sale order will last for a number of Passat, Jetta, Golf, Beetle and Audi A3 models—vehicles that collectively account for about a quarter of Volkswagen's U.S. sales, according to the company.
But this scandal goes beyond a temporary sales halt.
Bernstein analyst Max Warburton, who has covered Volkswagen for years, said the automaker's diesel deception is likely to damage its business beyond a major fine—it could also cause serious injury to its reputation.
"The best case for VW is probably still a multibillion-dollar fine (the potential [$18 billion] reported may prove excessive, but a large penalty looks likely), pariah status in the U.S. with government (and possibly consumers), damage to its leading position in diesel in the U.S. and a slower path to improvement in its far-from-perfect North American business," Warburton said.
A Volkswagen Passat is offered for sale at a dealership on Sept. 18, 2015, in Chicago. The Environmental Protection Agency has accused Volkswagen of installing software on nearly 500,000 diesel cars in the U.S. to evade federal emission regulations.Getty Images
According to the Environmental Protection Agency, VW had software built into 482,000 cars (model years 2009 to 2015) that could determine when the vehicles were going through clean air tests, and modify the emissions to meet federal and state levels.
The EPA said the software would trick engines into limiting emissions during testing; otherwise, the cars put out about 40 times more nitrogen oxide than legally allowed. Federal investigators said the automaker has admitted to the cars being rigged.
Over the weekend, Volkswagen CEO Martin Winterkorn apologized, saying, "I personally am deeply sorry that we have broken the trust of our customers and the public." The company also launched an external investigation into the matter.
Do drivers of red cars really pay more for auto insurance?
The scandal comes as VW fights to topple Toyota and become the top-selling automaker in the world, something analysts said could happen in 2015. Through the first half of the year, VW had sold 5.04 million vehicles worldwide compared to 5.02 million by Toyota. While the U.S. made up just a small percentage of those sales—roughly 3.5 percent—Volkswagen cannot afford a pullback in any market if it's going to catch Toyota.
Historically, consumers in America have shown a great willingness to forgive automakers after a high-profile recall or scandal. The ignition switch recalls did not hurt General Motors sales over the last year and a half, with the company posting its second straight year of record global sales in 2014. Toyota also recovered relatively quickly after the scandal involving unintended acceleration.
Volkswagen shares fell nearly 20 percent on Monday.
Questions? Comments? BehindTheWheel@cnbc.com.
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883898171d33f2e7457cf25d531a8879 | https://www.cnbc.com/2015/09/21/where-investor-milner-is-betting-e-commerce-aliens-ai.html | Where investor Milner is betting: e-commerce, aliens, AI | Where investor Milner is betting: e-commerce, aliens, AI
VIDEO8:3708:37Big bets on artificial intelligence and aliens
VIDEO3:0203:02Yuri Milner's tech viewPower Lunch
VIDEO0:3500:35The search for aliens is on
Billionaire investor Yuri Milner had huge success betting on Internet giants from Facebook and Twitter, to Snapchat and Spotify, but when he looks to the future, he says there won't be much opportunity in Internet-only companies, such as these. In an exclusive interview on CNBC, he said now he's looking to invest in companies that bridge the online and offline world—like AirBNB, one of his investments, or Uber, a company he says he wishes he'd invested in.
E-Commerce
Milner says the potential for technology to improve the offline experience is why he's so bullish on e-commerce. He's backed Alibaba in China and Flipkart in India. He's also backing a number of Uber competitors: Taxi hailing firm Didi Kuaidi in China, and Ola in India. And he's looking for other companies that will change the way people buy and sell things.
Read More Driven to succeed: Is Uber worth the hype?
Yuri Milner speaks at the TechCrunch Disrupt SF 2015 conference in San Francisco.David Paul Morris | Bloomberg | Getty Images
"E-commerce opportunities continue to be, uh, very interesting. The market in China overall is growing 50 percent a year. It's really interesting that e-commerce market in U.S. is growing only 15 percent a year and Chinese penetration overtaken U.S. penetration," Milner says. "But I think the opportunities are still open for e-commerce companies to show what they can do. "
Aliens
Milner likes to think about topics far bigger than investing and the next "unicorn." He's been pondering whether we're alone in the universe and is putting some money to work to find an answer to that question. In July he announced he's committing $100 million over 10 years to look for alien civilization. He says the time is right: "It's very presumptuous and aggressive to think that that we are alone in the universe with so many possibilities. And this is just in our galaxy, there are 200 galaxies like Milky Way. So the numbers and the odds are overwhelming for life to exist and even intelligent life. So if that is the case then I'm saying, let's find out."
And Milner says the process of trying to find that life will be valuable, no matter what it finds: "Let's do a scientific experiment instead of having these debates, let's just do a rigorous experiment and let's find out," says Milner. "Now it is very possible for us to attack this question with given with the technology that we have. We only need to take the existing radio telescopes and connect them to the largest computers that we have and we can process data thousand times faster than any previous search."
Artificial Intelligence
Another topic that Milner is eager to bet on: Artificial Intelligence. He thinks that it'll be a game changer for companies, not the threat that Elon Musk thinks it'll be. "I think it's not going to play out the way [Musk] thinks it's going to play out. What we have seen in the last few years is that it's collaborative engagement between human minds and computers. If you look at Google, Google is a combination of a lot of servers and a lot of human minds. Who is entering all this data into Google? Who is feeding the machine? This is human brains so there are few million people that are feeding the machine, and then the machine is processing the information and making us smarter."
That combination of technology and humans is one reason he's so bullish on Facebook: "It's a billion people voluntarily entering information, computers have a chance to process this data, and makes us more efficient. So I think if the histories of any lesson to be drawn for the future, the future belongs to a combination of human brains and computers and I don't think it's a threat. I think it's it's an opportunity."
Read More Hawking, Musk warn of 'inevitable' AI arms race
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086a51d7da01f95d3c69b18d9d477820 | https://www.cnbc.com/2015/09/21/xi-has-chance-to-clarify-china-role-on-world-stage.html | Xi has chance to clarify China role on world stage | Xi has chance to clarify China role on world stage
VIDEO1:4501:45What can Yellen and Xi do for marketsstocks
The presidents of the U.S. and China will discuss thorny issues such as cyber espionage, the South China Sea, and North Korea's nuclear threat, but one unspoken agenda item this week may be China's efforts to become recognized as more of an equal to the U.S. on the global financial stage.
Markets have their own wish list for the visit by Chinese President Xi Jinping and that is to hear reassurances on the Chinese economy after weeks of volatility in the Chinese stock market and also some clarity on China's somewhat confusing currency policy.
"I do think Xi is going to say the markets have exaggerated how bad China is. They are going through a transition, they made some important progress and China is not going to go through a recession," said Marc Chandler, chief currency strategist at Brown Brothers Harriman.
President Barack Obama walks with Chinese President Xi Jinping at a welcome ceremony in the Great Hall of the People in Beijing on Nov. 12, 2014.Greg Baker | AFP | Getty Images
Xi arrives in Seattle Tuesday and gives a speech Tuesday evening. He will meet business leaders such as Warren Buffett, Bill Gates and Apple's CEO before heading to Washington on Thursday where he will speak with President Barack Obama. He is also scheduled to speak at the United Nations.
The meeting between Xi and Obama comes just weeks before the November review on whether to include the yuan in the IMF's Special Drawing Rights basket, which would give it reserve currency status. The yuan was rejected in the last review process five years ago, and, while largely symbolic, inclusion could increase central bank demand for the yuan and elevate China's influence in the global economy.
China's recent devaluation of its currency sent ripples through global markets as traders worried China would continue to weaken the yuan. China was also dealt a setback in June when its mainland stock markets were denied inclusion in the MSCI emerging markets index, which would have increased foreign participation in its markets.
Read MoreWhat can Yellen and Xi do for markets
After the Fed held off hiking interest rates last week, markets became even more spooked about China's economy and its central government's ability to make the right policy moves to bolster confidence. The Fed highlighted concerns that international developments could hurt the U.S. economy when it announced its rate decision.
"They're desperately looking for legitimacy in international markets. They missed being included in MSCI's emerging market basket because of a lack of policy clarity and opacity in the way markets are governed and the influence the central government has on markets," said Wells Fargo global market strategist Peter Donisanu. "Because of that foreign capital was not able to make its way into the local markets."
Premier Li Keqiang was quoted Monday as telling the visiting British finance minister that there is no basis for continued depreciation of the currency and that China will continue to "nurture capital markets that are open, transparent and stable in the long term." Xi is expected to bring the same message to the U.S.
"The last hurdle it had was allowing its currency to be more market based. That's where you saw the devaluation a couple weeks ago. That really was a change in policy, a change in the way the currency was calculated," said Donisanu.
Read More
The U.S. has the biggest vote on the IMF, and Treasury Secretary Jacob Lew told China after it devalued its currency that it needs to communicate its policy more clearly.
For the markets, "At this point in time, I think the real salient points of the meeting are going to be around trade," said Donisanu. "The central government wants China to ascend not only to a market-based economy but also ascend to the IMF reserve currency status."
Clem Miller, portfolio manager with Wilmington Trust Investment Advisors, said the IMF standing is political and not significant economically because there would be no requirement that the yuan be used by other central banks. "Much more significant on the ground is the fact that the Chinese government is setting up all these currency swap lines with various countries, and that's much more significant because they can swap currencies and do it at the government-to-government level," he said.
"I know the staff at the IMF is wary because they know the authorities intervene in their currency frequently…. They look at what's going on in the stock market there and they see market intervention there. When you look at the broader picture, it's not like the broader Chinese economy is a market economy. It's a quasi-market economy," Miller said.
Read MoreObama needs to crack down on China
Donisanu said China is seeking to speed up recognition as a top economy and currency. "Time is running out from them. Up until recently, the growth story in China has been manufacturing and the transition from a manufacturing economy is taking place but in order for that pivot to services to continue, the local governments need additional sources of financing to reduce their own debt burden," he said. "One of the most favorable options at this point to obtain that financing is through the open markets. Open markets would call for foreign investor capital, making this move toward international legitimacy important. By being part of the currency reserve basket could entice institutional investors to participate in the Chinese bond markets."
Donisanu said Xi is not likely to try to clarify any policies, but may suggest there was a misinterpretation of comments on the repegging of the currency.
"He's very tight lipped, very orchestrated, so the things he says are very deliberate," said Donisanu. He said the market expects to hear a canned speech from Xi. "Any discussion around the ascension of China from an emerging market to a development to a global leader ... if we hear any language around that context, I think that could be a boost to markets."
JPMorgan international economist David Hensley said he does not expect to get much new insight from Xi. "Obviously, everybody's keen to understand better what's happening with growth and policy in China, and I'm sure this is going to come up both in the business meetings and with the president, and if he (Xi) does have a press conference," said Hensley. "I think they've tried to deal with this issue already in other forums, including the G-20 meeting, to try to reassure that they're not doing anything radical with regards to their currency, which is a sore point, not only here but in Asia."
China has been looking to reform policy but it has been criticized for using a heavy hand in markets it is trying to open up, and traders have been skeptical that the country's economic reports are not trustworthy.
Read More UK pushes to be 'China's best partner' despite fears
"One of his important messages is going to be just to reassure people that the Chinese economy is slower but not weak and is not a source of instability, and that policymakers have a steady hand and know what they're doing. Are we going to learn anything from that? Probably not. It's more about tone. Does he establish the confidence that's been missing up to now?" said Hensley.
While the U.S. would see very little direct impact from a weaker China, the worry has been that China's slowing will filter through to the U.S. economy via emerging markets as well as bringing deflation from falling commodities prices. JPMorgan economists in a report said a 1 percent GDP shock in China equates to a half-point drag on global growth. The hit on emerging markets is one for one, but the drag on development markets is more like 0.2 percent, according to JPMorgan.
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c232447c177f3c93689f866d2c15618a | https://www.cnbc.com/2015/09/21/your-first-look-for-tuesday-september-22.html | VIDEO0:5600:56Final Trade: Toyota, Lululemon, & more Fast Money
The "Fast Money" traders reveal what they're watching ahead of Tuesday's open.
Tim Seymour said Toyota was interesting at these levels.
Steve Grasso highlighted Lululemon.
Karen Finerman was looking at pharmacy benefit managers or PBMs.
Guy Adami was watching the iShares Nasdaq Biotechnology ETF.
Trader disclosure: On September 21, 2015, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Tim Seymour is long AAPL, BAC, CLF, DIS, F, GE, GM, GOOGL, INTC, JPM, T, TWTR, Tim's firm is long BABA, BIDU, MCD, NKE, NOK, SBUX, YHOO. Steve Grasso is long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, FIT, KBH, MJNA, MU, PFE, PHM, T, TWTR, GDX, firm is long BP, CVX, GLD, AMZN, MCD His kids own EFA, EFG, EWJ, IJR, SPY. Karen Finerman is long BAC, C, FINL, FL, GOOG, GOOGL, IBB, JPM, KORS, KORS call spreads, M, URI, she is short SPY, Her firm is long ANTM, AAPL, BAC, C, DIS, FBT, FINL, FL, GOOG, GOOGL, GPS, IBB, JPM, KORS, KORs calls, M, M calls, SUN, URI, URI long puts, XBI, KORS call spreads, M call spreads, her firm is short IWM, SPY, MDY, USO, Karen Finerman is on the board of GrafTech International. Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.
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030856a4c90391dacef0c2f341d5d52a | https://www.cnbc.com/2015/09/21/zurich-insurance-terminates-talks-with-rsa-reuters.html | RSA tanks 20% after Zurich Insurance ends bid talks | RSA tanks 20% after Zurich Insurance ends bid talks
VIDEO0:3200:32Zurich's plan to acquire RSA is a no-go
Zurich Insurance has terminated its takeover talks with RSA Insurance, as the Swiss insurer also revealed that its general insurance business would make a third-quarter operating loss of up to $200 million.
Zurich announced on July 28 that it was considering making an offer for RSA, which is best known for its More Than consumer brand, in a deal that some commentators estimated could be worth as much as as £5.6 billion ($8.7 billion).
U.K. rival RSA Insurance attributed the end of the talks to the deterioration in Zurich Insurance's general business.
"As a result of recent deterioration in the trading performance of Zurich's General Insurance business, Zurich has terminated discussions with RSA regarding a possible offer," said RSA Insurance in a statement on Monday.
The U.K. insurance group's shares tanked around 21 percent on the news early on Monday, and continued to have a rocky session, closing 20.8 percent lower. Shares of Zurich finished down around 2.8 percent in Monday's trading.
RSA CEO: Zurich Insurance acquisition isn't 'on the table'
The bid was unsolicited, RSA Insurance said on Monday.
"Zurich has confirmed to RSA that the due diligence findings were in line with their expectations and, while the process had not been finally concluded, they had not found anything that would have prevented them from proceeding with the transaction on the terms announced on 25 August 2015," the RSA statement said.
Zurich issued a preliminary third-quarter trading update on Monday, in which said its estimated aggregate loss from the August explosions at a chemicals storage facility in Tianjin, China, would be $275 million.
In addition to this estimated loss, Zurich flagged that weaker-than-expected profitability in its general insurance business would continue into the third quarter. Overall, the insurer said that it expected the business would report a third-quarter operating loss of about $200 million.
"Given the deterioration in profitability in certain parts of the General Insurance business, and following his appointment as General Insurance CEO, Kristof Terryn is conducting an in-depth review of the business," Zurich said.
Panmure Gordon has cut its rating on RSA to "sell" from "hold" on the back of the news. It also lowered its target price to 385 pence (599 cents) per share from 550 pence.
"We had thought that the deal would go through, which would have been an excellent exit route for long suffering RSA shareholders. RSA will now have to do the tough job of delivering earnings from its reduced size," Panmure analyst, Barrie Cornes, said in a research note on Monday.
Marcus Rivaldi, executive director of credit & equity analytics at Twelve Capital, however, remained positive on the U.K. insurance company, saying he would personally be buying RSA.
"I think RSA will remain a potential bid target. It's just a question of who else out there can find those sort of synergies that Zurich were able to find to generate a similar type of price target for RSA."
VIDEO2:4402:44Tianjin is a significant insurance loss: ProWorldwide Exchange
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1fadfec60af1f3b071e7dc210f31c735 | https://www.cnbc.com/2015/09/22/3-under-the-radar-ways-to-play-china.html | VIDEO1:2701:273 under-the-radar ways to play ChinaFast Money
As Chinese President Xi Jinping visits the U.S. this week, "Fast Money" trader Guy Adami sees one winner in the markets—cybersecurity stocks.
Xi was slated to meet with U.S. tech firms on Tuesday and will speak with President Barack Obama later in the week. A sluggish Chinese economy, U.S. firms' access to the country and cyberattacks traced to the area are among the topics that could be discussed.
Source: Palo Alto Networks
For trader Guy Adami, cybersecurity will remain one of the top issues in U.S.-China relations moving forward, and companies that offer protection will benefit.
"I think these names are all still buys," he said.
Read MoreHank Paulson: China economy has 'run out of steam'
He looked specifically to Palo Alto Networks despite its "huge valuation."
Boeing, meanwhile, looks "vulnerable" on continued weakness in China, trader Brian Kelly said. The aircraft maker seems appealing as a short due to its exposure there and in emerging markets.
Trader Dan Nathan added that he would avoid large industrials, many of which are encompassed in the Industrial Select Sector SPDR Fund.
Read MoreChina has a message markets don't understand
Disclosures:
Dan Nathan
Dan is long PYPL Oct call calendar, BA Oct put spread, INTC Oct put spread, QQQ Oct put spread, XLU call spread, TWTR, PG
Brian Kelly
Brian Kelly is long BBRY, GLD, Bitcoin, US Dollar, Crude Oil; he is short Yuan, British Pound, Euro, Yen, EEM, EWC, EWU, EWG, SPY, S&P 500 Futures.
Guy Adami
Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.
Steve Grasso
Steve is long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, FIT, KBH, MJNA, MU, PFE, PHM, T, TWTR, GDX, firm is long BP, COP, CVX, FCX, NE, NEM, OXY, RIG, VALE His kids own EFA, EFG, EWJ, IJR, SPY.
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7ffab0b3d5c9f137cf48a3507167a44b | https://www.cnbc.com/2015/09/22/activists-in-ukraine-block-food-trucks-crossing-checkpoints-into-crimea.html | Activists in Ukraine block food trucks crossing checkpoints into Crimea | Activists in Ukraine block food trucks crossing checkpoints into Crimea
Activists in Ukraine have set up road blocks to prevent deliveries of food and other supplies crossing into Russia-controlled Crimea in a protest against the treatment of the minority Tatar community that could last up to six months.
The Tatar activists began to block roads on Sunday September 20th to highlight the treatment of Tatar people in Crimea, as well as to provoke Ukrainian authorities and the international community to do something about the situation. The region was annexed by Russia in March of 2014, causing western countries to place sanctions on Russia.
According to Kateryna Kruk, a political scientist and activist in Ukraine, 240 trucks were blocked from crossing the checkpoints on the first day of the blockade. TASS reported on Monday that more than 800 trucks were queuing at the Crimean border. The activists are only blocking supply trucks; civilians and regular traffic are still allowed across.
Trucks queue after Tatar activists block a road near to the border crossing point into CrimeaMaksim Voytenko | Anadolu Agency | Getty Images
The Tatars are an ethnic group originating from central Asia that inhabited the Crimea from the 13th century, but were deported en mass by Stalin in 1944. The Tatars are now a minority in the Crimea, making up around 12 percent of the population according to the most recent census data from 2001.
The Tatars claim members of their community living on the peninsula are being discriminated against by Russia authorities, although the Kremlin denies these allegations. Members of the community were arrested for attending pro-Ukraine rallies and, in August, the BBC reported that a Crimean Tatar TV channel was forced to stop broadcasting because authorities in Moscow constantly rejected their application to stay on the air.
Read More
Kruk explained to CNBC some of the other reasons for the protest.
"The decision to organize the Crimea blockade is due to several reasons. First and most important one is the lack of attention to the situation in Crimea from the international media and politicians," she told CNBC via email.
"Crimea is absolutely absent from talks about Ukraine and it feels like there is a shared feeling it's a lost game. Even Ukrainian President Poroshenko hasn't mentioned Crimea in his speech on the occasion of celebration of Independence Day."
She also accused Western companies and European politicians of ignoring sanctions against Crimea and continuing to travel and do business in the region.
"That makes Tatars, who are very much pro-Ukrainian, feel forgotten and betrayed," she added. "I believe this initiative of Crimean Tatars aims not only at raising the awareness of international society, but also to fill the gap in lack of actions by Ukrainian authorities."
Refat Chubarov, chairman of the World Congress of Crimean Tatars, attends a protestMaksim Voytenko | Anadolu Agenc | Getty Images
Refat Chubarov, a member of the Ukrainian parliament and chairman of the World Congress of Crimean Tatars, has appeared with the protesters and spoke to a Ukrainian news network about how long the blockade will last.
"Organizers of this action offer various formats for it, including in terms of duration. It can be a week's format, a month's format, a format for six months or even longer," he told the ICTV channel, TASS reported.
Ukrainian authorities have not condoned the blockade, but they have not done anything to disperse it, according to Kruk.
"The response of the Ukrainian side was rather silent, quite understandably they want to distant themselves from the blockade," she explained.
"At the same time, the police haven't prevented Crimean Tatars from organizing a blockade, nor have they detained anyone during the action. So, I believe the blockade is taking place with a silent approval from authorities."
Read More
However, Crimean authorities claim they are not concerned by the blockade, according to reports from TASS.
"Almost all retailer chains and entrepreneurs have made agreements with agriculture producers on the mainland," Crimea's prime minister Sergey Aksyonov told a Russian news network.
"A total of 90 percent of goods at our markets now were produced in Russia. With this approach, there will be no Ukrainian products at all at shelves in supermarkets in two weeks."
Follow Luke on Twitter: @LukeWGraham
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2413e1e0cb4d9fec8b6f29d37357fd6d | https://www.cnbc.com/2015/09/22/after-hours-buzz-hrtx-sbux-nsc-fb-more.html | After-hours buzz: HRTX, SBUX, NSC, FB & more | After-hours buzz: HRTX, SBUX, NSC, FB & more
Traders work at the stock exchange in Frankfurt am Main, central Germany, on September 18, 2015.Frank Rumpenhorst | AFP | Getty Images
Take a look at some of Tuesday's after-hours movers:
Heron Therapeutics — Shares of the biotechnology firm spiked 29 percent in after-hours trade on positive results of a clinical study for a drug that manages pain following surgery on the big toe joint.
Norfolk Southern — Mark Manion, executive vice president and chief operating officer, announced he will retire, effective Feb. 1, 2016. Manion will be succeeded by Michael Wheeler, currently vice president of engineering. President and CEO James Squares will replace Charles "Wick" Moorman as chairman of the corporation's board, effective Oct. 1.
Facebook, Twitter — Instagram, which is owned by Facebook, announced its number of users topped 400 million, which is more than Twitter and a 100 million increase from December.
Starbucks — Cappuccine, a producer of frappe and other frozen beverage mixes, sent a cease-and-desist letter to Starbucks for using a trademark in summer flavor names.
BorgWarner — Remy International said that its stockholders approved a previously discussed acquisition of the motor manufacturer by BorgWarner.
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4c7bbdd40c8bed517f2271430a30741f | https://www.cnbc.com/2015/09/22/after-smartphones-wearable-tech-poised-to-be-next-big-thing.html | It's confirmed: Wearables are the 'next big thing' | It's confirmed: Wearables are the 'next big thing'
Customers looking at an Apple Watch in an Apple store in New York.Mike Segar | Reuters
Wearables will become the world's best-selling consumer electronics product after smartphones, according to new forecasts by market research firm Euromonitor.
Sales of autonomous wearables, or smart wearables, are projected to exceed 305 million units in 2020, with a compound annual growth rate (CAGR) of 55 percent during the next five years, Euromonitor said in a new report.
That's well above other electronics like laptops and televisions but still below smartphones, which will maintain their dominance in the consumer market with sales projected to top 1.6 billion units in 2020, Euromonitor noted.
Two main categories make up the wearables market: Autonomous wearables, which include smartwatches and the Google Glass, and passive wearables, also known as basic wearables.
Read MoreLG just dropped a $1,200 23-karat gold smartwatch
The former group boasts built-in connectivity features and advanced processing capabilities that are capable of running third-party applications while the latter has a smaller range of functions. The majority of passive products today are fitness trackers like Fitbits that can only provide biometric data about users.
Improvements in technology and battery life as well the entry of the Apple Watch are among the top growth drivers for wearables, Karissa Chua, Euromonitor's consumer electronics analyst told CNBC.
"Apple is such a strong brand and known for their quality so it has become a major catalyst for the entire market."
Moreover, the consistent growth rate of smartphones actually pushes up demand for wearables, she explained. "Demand is closely tied to smartphones as people essentially buy wearable products for an extension of the smartphone experience."
The ascendency of wearable electronics also provides a much-needed boost to retailers and manufacturers as the dynamic growth of tablet sales comes to a grinding halt , Euromonitor added.
VIDEO0:3400:34Google working on new wearables
After logging a whopping 66 percent CAGR in the past five years, sales of tablets are set to slow to only 2 percent CAGR between now and 2020 due to consumer preferences for larger-screen smartphones.
Developed markets like the U.S. are set to see the biggest demand for wearables in terms of retail volume by 2020.
Read More Samsung launches smartwatch in Apple fightback
Emerging markets are unlikely to experience high demand for wearables since internet penetration rates aren't as high and people in those countries are still making the transition to smartphones, Chua noted.
To be sure, Euromonitor's forecasts are noticeably more bullish than other intelligence gathering firms like International Data Corporation (IDC). In a report last week, IDC bet global shipments will hit 173.4 million units by 2019, significantly below Euromonitor's prediction of 305 million units in 2020
But IDC also warned of the growing gap between autonomous and passive units.
While smart wearables only account for about a third of the total market today, they are on track to surpass the less functional basic wearable category by 2018 thanks to advancements in user interface and features, explained Jitesh Ubrani, IDC's senior research analyst.
"Smart wearables will quickly move from a smartphone accessory primarily focused on notifications to a more advanced wearable computer capable of doing more processing on its own."
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4b26bce317b6c5bff4ea957ab25161d1 | https://www.cnbc.com/2015/09/22/asian-markets-track-us-europe-sell-off-china-flash-pmi-eyed.html | Asian stocks lose footing on renewed China jitters | Asian stocks lose footing on renewed China jitters
VIDEO0:3600:36Concerns over China economyManufacturing
Asian equities slid deeper into the red on Wednesday, after a preliminary reading of China's mammoth manufacturing sector fell to a six-and-a-half-year low of 47.0 in September, rekindling worries over the world's second-largest economy.
The downbeat sentiment persisted even as Chinese President Xi Jinping defended his country's growth pace and reassured the world that China's financial markets will remain stable in his first policy address during a state visit to the United States.
"The flash China PMI fell more than market participants [had] expected and the PMI is also well below the 50-point threshold, which reaffirms that Chinese economic activity continues to slow and this adding to global economic and financial concerns," Elias Haddad, senior currency strategist at Commonwealth Bank of Australia, told CNBC Asia's "Street Signs."
An unimpressive handover from offshore markets also weighed on Asian bourses.
Major U.S. averages crashed more than 1 percent overnight, with materials shares among the hardest-hit due to a sell-off in commodities on the back of lingering worries about a slower-growing China.
News that Volkswagen would make a provision of $7.3 billion after allegations it cheated on vehicle emission tests sparked a global selloff in auto stocks. The Nasdaq Biotech Index also extended losses into a second day after U.S. Democratic presidential candidate Hillary Clinton said she would propose a monthly cap of $250 on prescription drugs.
Across the pond, the pan-European finished the day significantly lower, down 3.1 percent as autos tanked and weaker oil prices weighing on investor sentiment.
Meanwhile, markets in Japan remain shuttered for the Autumn Equinox holiday and are set to reopen Thursday.
China indices tumble
China's Shanghai Composite index lurched lower in the final 30 minutes of trading to close down 2.2 percent, with the selling concentrated among blue chips on Wednesday.
Brokerage houses surrendered Tuesday's advances; Citic Securities, Haitong Securities and China Merchants Securities lost more than 4 percent each.
Banking shares also lost ground, with Bank of China and Industrial and Commercial Bank of China (ICBC) declining more than 1 percent each, while PetroChina which has the heaviest weighting of any Chinese company in the Shanghai index, crashed down 2.1 percent.
Among other indexes, the benchmark CSI300 Index tanked 2.3 percent. Small-caps got off lightly on comparison; the Shenzhen Composite notched down 0.8 percent while the start-up board ChiNext erased losses to tick up 0.2 percent.
In Hong Kong, the index plunged 2 percent to touch its lowest level since September 8, with Citic Securities down 5 percent on news that the Chinese government has accused them of systematically front-running trades ahead of state-sponsored stock purchases to support the market.
"In the last week or so, Hong Kong markets rallied pretty well and showed resilience even with bad news in China and the U.S, but we hit a bump yesterday at the 22,000 level where we couldn't break the resistance," Jackson Wong, associate director of Huarong International Securities, told CNBC by phone.
"Weak data out of China sent a signal for everyone to sell off their position after the last two weeks and also before the 'window dressing' period next week. So there's no panic selling at all," Wong added.
Read MoreChina has a message markets don't understand
Taiex skids 2.1%
Taiwan's weighted index deepened losses to hit its lowest level in two weeks, on the back of heightened China-related jitters and as nervous investors eyed the country's central bank meeting.
Analysts are calling for the Central Bank of the Republic of China (CBC) to finally give in to a rate cut at its quarterly policy meeting on Thursday, after having kept its policy interest rate at 1.875 percent since 2011, amid stuttering external demand.
The CBC governor told parliament earlier in the day that monetary policy is "very loose" and indicated deflation was not a threat for the island, Reuters reported.
VIDEO4:1604:16Xi's address focused on confidence: ProSquawk Box Asia
ASX falls 2.1%
Australia's S&P ASX 200 index accelerated its pace of declines to finish at a more than two-week trough, after fresh factory data out of China — Australia's largest trade partner — once again heightened concerns over the stability of the mainland economy.
It was a broad-based slump in Sydney on Wednesday. All four major lenders plummeted between 2.3 and 3.7 percent, while the renewed weakness in commodity prices put a chokehold on the heavyweight resources sector.
Market bellwether BHP Billiton sank 4.4 percent over the global miner's plans to raise money with hybrid securities.
"BHP announced that Australian shareholders will have to vote on a plan to pay the dividend for BHP's London listing out of the Australian entity's earnings. The issue is that while the ASX-listing's dividend is fully-franked and receives the corresponding tax benefits, the dividends to the U.K. listing will not receive tax benefits," IG market analyst Angus Nicholson wrote in a note.
"BHP also announced it is planning a hybrid capital raising as $13 billion of short-term debt is set to expire within the next five years. All of these factors seemed to weigh on the stock today, alongside a general negativity around the materials sector," he added.
Meanwhile, the Australian dollar dropped 0.7 percent to $0.7038 versus the greenback, its lowest level since September 10.
"The Australian dollar should remain on the downside against the U.S. dollar because Chinese data will continue to struggle as the PMI data today suggested, CBA's senior currency strategist Elias Haddad said.
"Downside pressure in iron ore prices because of the market's excess supply, the risk that the Reserve Bank of Australia (RBA) could cut rates again and the fact that the dollar will stay strong [will] continue to weigh on the Aussie dollar going forward," he added.
Kospi slumps 1.9%
South Korea's Kospi index finished at a one-week low.
The index's top weighted stock Samsung Electronics eased 1.2 percent, while Hyundai Motor widened losses to 4.3 percent on the back of a downturn in global auto names.
Shares of Kia Motors and automotive parts supplier Hyundai Mobis declined 3.4 and 2.5 percent respectively, but logistics company Hyundai Glovis erased early losses to notch up 1 percent.
Also bucking the downtrend was stationery maker Monami which surged nearly 30 percent.
VIDEO4:2804:28Why weaker currencies may be bad for EMsSquawk Box Asia
Rest of Asia down
Markets in Southeast Asia largely fell more than 1 percent each, with the exception of Singapore, Thailand and Vietnam whose benchmark indexes edged down between 0.4 and 0.9 percent.
China-sensitive currencies also tumbled in Asian trade, with the Indonesian rupiah losing 1 percent of its value against the U.S. dollar to hit a fresh-17 year low.
The Malaysian was 1.2 percent weaker, last seen at 4.3450 against the greenback.
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3ccfe0c9db4b102a521f204f146df41c | https://www.cnbc.com/2015/09/22/bofa-shareholders-reject-chairmanceo-split-moynihan-to-keep-chairman-role.html | BofA shareholders reject chairman/CEO split; Moynihan to keep chairman role | BofA shareholders reject chairman/CEO split; Moynihan to keep chairman role
VIDEO1:3801:38BofA's Moynihan: Good to have supportSquawk Alley
VIDEO2:3202:32BofA shareholders reject CEO/Chairman split
VIDEO1:3101:31BofA CEO can keep Chairman role
Bank of America shareholders voted down the splitting of the chairman and CEO positions on Tuesday, which are held by Brian Moynihan.
About 63 percent of the shareholders voted so that Moynihan would keep both of his titles.
Moynihan said after the vote that it is "good to have the support" of the shareholders and that he "learned a lot" from them.
Win or lose, Bank of America vote shows new shareholder muscle
The vote was announced late last week and, acccording to Reuters, it was expected to be close.
The issue had been a contentious one, with the two largest pension funds in the U.S., The California Public Employees' Retirement System (Calpers) and the California State Teachers' Retirement System (Calstrs), saying the two roles should not be consolidated, adding that the bank needed more independent oversight since it has been underperforming under Moynihan's leadership.
CLSA analyst Mike Mayo said in an Aug. 31 note that the roles should not be consolidated because it could make the bank a bigger target for regulators.
"We think a 'no' vote is in the best interests of shareholders, at least until BofA's board improves oversight more consistent with a new G30 report on bank culture," Mayo said in a note, referring to the report released in July.
Bank of America shares were down more than 1 percent in mid-morning trading.
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b7c2cf01c5b203ab701bf5cbb47bf40d | https://www.cnbc.com/2015/09/22/bt-pledges-major-upgrade-to-broadband-network.html | BT pledges major upgrade to broadband network | BT pledges major upgrade to broadband network
British multinational telecommunications provider BT has vowed to upgrade its Internet broadband network in the U.K after competitors accused the group of hampering competition and poor customer service.
BT chief executive, Gavin Patterson, said the FTSE 100 stalwart was targeting new minimum broadband speeds of 5-10 megabits per second as it planned to extend its "Openreach" fiber network.
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"We should be under no illusions, the network requires investment if we want to stay ahead as an internet based economy, there is no two ways about that," Patterson told CNBC on Tuesday.
BT is awaiting the outcome of a review by regulators into whether Openreach should be split off into a separate company. Rivals have pushed for the Openreach network to be spun off, saying the current system limits competitor access, creating an unfair advantage and allowing BT to set prices too high.
Rival U.K. Internet providers Sky, TalkTalk and Vodafone all rely on BT's Openreach fiber and copper networks to provide broadband connections to customers, while Virgin Media operates its own network.
"With respect to service, I think we should take their comments with a pinch of salt, there is a bit of a self-serving nature to them," Patterson told CNBC, referring to criticisms made by rivals in an open letter in the Financial Times newspaper on Monday.
Patterson said spinning off Openreach was not the "right model" for the U.K. and there was "no evidence anywhere around the world that there is a better model than the one we have got."
A report from KPMG commissioned by BT said its investment program in fast broadband would add £20 billion to £30 billion to the U.K. economy over the next decade.
Follow us on Twitter: @CNBCWorld
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19bc7c831e15f2ecdda332c6e084e76e | https://www.cnbc.com/2015/09/22/bummer-stocks-badly-missing-strategists-mark.html | Bummer: Stocks badly missing strategists’ mark | Bummer: Stocks badly missing strategists’ mark
VIDEO2:4402:44Did analysts overestimate markets?Trading Nation
The has fallen 4.5 percent this year, badly underperforming Wall Street expectations. If stocks close the year around this level, it will be the first time that the S&P has missed strategists' targets since 2008.
Major Wall Street strategists began 2015 with a median year-end S&P 500 target of 2,225, which would imply an 8 percent gain for the S&P. None expected stocks to fall in 2015. This followed years in which the S&P rose more than the Street estimated, sometimes powerfully, such as in 2013.
But on Monday, the S&P 500 closed at 1,967, which is rather dramatically below that consensus call.
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Andrew Burkly of Oppenheimer points out that the underperformance has come even as one of the key concerns for the market—a presumptive rate rise from the Federal Reserve—has been pushed further and further off.
The most conservative forecasts "were looking for multiples to compress because the Fed would be raising rates," Burkly said Monday on CNBC's "Power Lunch."
That is, strategists expected that earnings would look good, but that investors would pay less for each dollar of earnings (that is, a smaller multiple) due to the higher rates.
"What's interesting is that we didn't get the Fed rate hike. We've gotten a little bit of multiple compression, but it's really on the earnings that most strategists missed their mark," due to continued low energy prices, Burkly said.
Read More Market fear rises after Fed non-move
Not only were strategists too bullish, then, but they were too bullish even though an apparently bearish event that they predicted has not yet come to fruition.
While this might be used as an excuse to mock strategists' inaccuracy, it also shows just how important the price of oil is to the S&P 500, given the energy weighting in the index. And with oil in free fall, the already tough task of predicting where stocks will end the year appears to have gotten even harder.
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9622869050ba6347abd3081d15eaf946 | https://www.cnbc.com/2015/09/22/china-has-a-message-markets-dont-understand.html | China has a message markets don't understand | China has a message markets don't understand
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China may be compounding its own problems by the way its leaders talk about them.
With the country's growth a concern for global markets, investors are trying to fathom the depth of China's economic issues and understand what authorities are doing.
Analysts say it is difficult to discern what's really going on there and that the economy has always been difficult to measure.
But China's leadership isn't helping.
Chinese President Xi Jinping.Getty Images
Ahead of his U.S. visit that kicked off Tuesday, Chinese President Xi Jinping said in an interview with The Wall Street Journal that recent intervention in capital markets was necessary or normal and that China is still on track to transform its economy.
Read MorePresident Xi: China is a big ship hitting rough seas
"I think they are mostly nothing new and simply a repeat of what other officials have said," Ilya Feygin, managing director at WallachBeth Capital, said of Xi's comments.
Sticking to policy lines casts doubt for many on whether Chinese leaders have a grip on maneuvering the country's economic transition in a way that doesn't shock global markets more than it already has.
"I think it's a combination of missteps that add up to a lot of worries, capacity of the Chinese government to manage its economy through a very challenging environment and not making it worse," said Scott Kennedy of the Center for Strategic and International Studies. "It begins with their intervention to push up their stock market last year."
Rapid-fire policy changes in the last few months have befuddled outsiders on Chinese leaders' intentions, which raise real concern on whether the world's second-largest economy can make a timely transition from a manufacturing hub to a consumer-oriented system.
Read MoreWhat China's president must do on US visit
"The point is to recognize there's a structural transition going on," said Arthur Kroeber, head of research at Gavekal Dragonomics. "And the problem we have is the data we have on the bad part of the economy is actually pretty developed. The data on services (is) much better but fuzzier."
Most of the economic reports still focus on manufacturing-related aspects of the economy, such as electricity use and the producer price index. Data such as the provide some light on services, which continued to hold above the 50 expansion/contraction line in August. Manufacturing PMI fell below that line.
Growth in the services sector has outpaced that of the manufacturing sector in the last year and a half, according to the latest National Bureau of Statistics of China data compiled by Wind information.
Amid the transition, questions also surround the accuracy of China's reports on headline GDP growth. The official figure is 7 percent, the slowest in more than two decades
In a report Tuesday, the Asian Development Bank lowered its forecast for Chinese growth in 2015 to 6.8 percent from 7.2 percent previously. Other analyst estimates range from 2 to 4 percentage points lower.
Slowing growth may be an old story, but markets continue to react on a day-to-day basis.
"Either way, (the U.S. and China) both stand to lose if communication doesn't get much better … because of how quickly financial markets react to news or dearth of news," Kennedy said.
The ADB report pointed out the specific impact of China's slowing growth on its Asian neighbors: "For a 0.2 percentage point decline in the PRC's growth, Mongolia, shipping copper, will register an estimated GDP growth decline of 2.7 percentage points. Kazakhstan, piping oil, will lose an estimated 0.5 percentage points."
The ADB said Thursday that "these country-specific figures have now been removed from the report entirely."
Credit Suisse also on Tuesday heavily cut China demand assumptions, commodity prices and earnings estimates, battering commodities and the mining sector.
Copper plummeted more than 3.5 percent, while mining stocks such as Glencore fell more than 10 percent.
According to the transcript of his interview with The Wall Street Journal, Xi said problems of pressure on the economy are "in the course of progress."
"Investors will come to a right judgment if they have a full understanding of China's progress in economic development since the start of reform and opening-up, of China's strategies formulated recently to ensure sustained and steady growth, and of the relevant data and trends in China's economic performance," Xi said.
But the basis of the Communist regime is that no one has a right to know anything, analysts said.
Read MoreXi has a chance to clarify China role on world stage
The Chinese authorities are "very much concerned about protecting information," Kennedy said. "What is critical for investors might be off limits."
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21386adeba5ac9f9a10ee863f04d14db | https://www.cnbc.com/2015/09/22/china-will-impact-markets-more-than-economy-morgan-stanley-exec.html | China will impact markets more than economy: Morgan Stanley exec | China will impact markets more than economy: Morgan Stanley exec
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Ruchir Sharma, head of emerging markets at Morgan Stanley, said Tuesday that the impact of China's economic slowdown will be felt more in U.S. financial markets, rather than in the U.S. economy.
"I think the economic impact in the U.S. is likely to be much more limited than any other region in the world," he told CNBC's "Power Lunch." "But I think the earnings impact might be much more than what people think."
Sharma said that a stronger dollar will hit companies that export their goods— about one-third of U.S. stock market earnings come from international and emerging markets, he said.
Read More China has a message markets don't understand
But more alarming, said Sharma, are indications of an impending global recession—with the source in China. "I think we already have some signposts that the global economy is pretty much close to a recession and we are one shock away from the global economy entering its sixth global recession in postwar history."
Sharma, who is also the author of "Breakout Nations," recommended bright spots in Eastern Europe and South Asia as investment opportunities. He told investors to look for countries that will benefit from lower commodity prices over the next few years.
Kovacevich: China isn't the world's growth engine
Dan Veru, CIO of Palisade Capital Management, said that not only is the Chinese economy troublesome, but so are Beijing's currency devaluations.
"That is going to set off a string of currency devaluations throughout the emerging markets and the rest of Asia. So far that has not happened, but that is a risk," he told CNBC's "Power Lunch" on Tuesday.
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f6303f5f723328dbeee5b1368e38857d | https://www.cnbc.com/2015/09/22/chinas-premier-defends-economy-report.html | Xi: China is like an arrow shot, no going back on reforms | Xi: China is like an arrow shot, no going back on reforms
Chinese President Xi JinpingLintao Zhang | Pool | Reuters
China's President Xi Jinping has defended his government's economic efforts and said reforms would continue regardless of slowing growth and stock market volatility, in an interview with the Wall Street Journal (WSJ).
"Like an arrow shot that cannot be brought back, we will forge ahead against all odds to meet our goals of reform," Xi told the WSJ in a written interview ahead of his first official trip to the U.S., at which he will attend a summit with U.S. President Barack Obama.
Read MoreXi has chance to clarify China role on world stage
In the interview, Xi said Beijing's intervention to halt the country's stock market slide over the past few months was necessary to "defuse systemic risks," noting that it was similar to actions taken in "some mature foreign markets."
He likened the country's economic slowdown to a big vessel hitting rough seas, saying that "any ship, however large, may occasionally get unstable sailing on the high sea."
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Xi also addressed the sensitive issue of cybertheft, telling the WSJ: "The Chinese government does not engage in theft of commercial secrets in any form, nor does it encourage or support Chinese companies to engage in such practices in any way,"
Read the full WSJ article here.
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f65bc9f67024c63e17c757410bb43c27 | https://www.cnbc.com/2015/09/22/chinas-xi-visits-us-tech-amid-tepid-expectations.html | China's Xi to visit US tech—amid tepid expectations | China's Xi to visit US tech—amid tepid expectations
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Chinese President Xi Jinping is set to meet with U.S. business executives in Seattle on Wednesday, but few experts expect much progress from the meetings.
Xi is expected to deliver a speech to a group of corporate CEOs including Apple CEO Tim Cook, Amazon chief Jeff Bezos and Microsoft's Satya Nadella. There, the Chinese president may respond to questions about his country's cyber-espionage actions, ask companies to oppose sanctions from D.C., and request that firms sign a pledge that could give Beijing the keys to their technologies. But no matter what subjects are covered, experts say not to expect much progress from Xi's U.S. weeklong tour—which will also take him to the White House and New York.
Chinese President Xi Jinping addresses the audience at a luncheon at SkyCity Grand Hotel on November 21, 2014 in Auckland, New Zealand.Greg Bowker | Pool | Getty Images
"I expect a lot of diplomatic wording about how we're learning to work together, but not a lot of progress," said Adam Segal, a senior fellow for China studies and director of the digital and cyberspace policy program at the Council on Foreign Relations.
On the cybertheft front, China's line for many years is that it does not engage in such activities, and it is only the victim of digital U.S. invasions. Cybersecurity experts say that is patently false but acknowledge that tying Chinese-based hacks back to the central government is challenging.
In fact, U.S. authorities have for years expressed their concern at the level of attacks originating in China. No other country attacks American and European companies as frequently as China, said Richard Bejtlich, FireEye chief security strategist.
"In terms of the simple volume of activity directed against Western commercial interests, and the amount of information they take, there's nothing like China," Bejtlich told CNBC.
Additionally, Beijing's insistence on its innocence makes reaching a rules-of-the road agreement nearly impossible.
Would cybertheft sanctions on China be effective?
"At least U.S. officials say 'of course we're spying and we're happy to talk about strengths and deals, and how to be better,'" said Jason Healey, a senior research scholar at Columbia School of International and Public Affairs. "When China says it's a victim here and people who say otherwise must provide proof, then it's difficult to take talks to the next level."
"While it's valid and true that they're a victim, to go further and say 'therefore we have nothing to give up'—you can't have a serious dialogue," he added.
Media reports this month suggested that the White House may have been ready to place sanctions against China for cyberespionage, but President Barack Obama's administration ultimately decided not to make any waves before Xi's visit.
And while many focus on a reportedly forthcoming agreement on infrastructure cyberattacks, others say the corporate spying is a more serious immediate threat.
"(That deal) does nothing to address the number one problem, which is the steady erosion of our competitiveness by theft of commercial data," Bejtlich said. "If you can erode that key quality of innovation by being an exceptional fast follower—and maybe even beating the original product to market—then that makes life very, very difficult for us."
But while many call on Washington to sanction China, others say punitive actions could backfire.
Potentially just as important as what U.S. companies will tolerate from Beijing's cyber spies is what they agree to do for access to the Chinese market.
Bejtlich said he will be watching to see if any firms agree to sign China's pledge, promising Beijing that their products would be "secure and controllable." To many China watchers, that expression implies that Chinese regulators could require access into systems, potentially exposing companies to data and intellectual property theft.
Read More Cyber espionage: The Chinese threat
"I have a feeling they're ready to accept a lot because they are seduced by the amount of money you can make (in China)," Bejtlich said. The FireEye executive said he knows firsthand of security incursions that companies on the ground in China have faced.
Still, the as-for-now voluntary pledge may offer too little upside to the privacy-minded tech industry, Segal said, adding that he didn't expect most to sign on.
For his part, Columbia's Healey said that some tech sectors could be amenable to signing the pledge. While hardware could be more willing, software firms might be less interested in opening up their code to the Chinese, he said.
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e1b88302575deb82e23ec5d013954b09 | https://www.cnbc.com/2015/09/22/chinas-xiaomi-announces-telecom-carrier-service-new-flagship-handset.html | China's Xiaomi announces telecom carrier service, new flagship handset | China's Xiaomi announces telecom carrier service, new flagship handset
Xiaomi, China's leading smartphone maker, announced on Tuesday two prepaid wireless plans to mark its debut as a mobile virtual network operator (MVNO) competing against China's national carriers.
MVNOs, which purchase network capacity from large carriers and resell mobile plans under their own branding, have failed to gain traction in China, where three state-owned giants dominate the telecoms industry.
But as China's most popular handset brand, Xiaomi's foray into the sector could finally kickstart the MVNO industry and provide a boost for Chinese telecom regulators who have sought for years to introduce market competition against the trio of state-owned carriers often criticized for their poor profitability and perceived bloat.
Hugo Barra, vice president of global operations at Xiaomi.Getty Images
Xiaomi's new wireless business, called Mi Mobile, will offer voice and data services and utilise either the China Unicom or China Telecom networks.
The launch comes less than six months after Google announced it would launch an MVNO service in the United States called "Fi" that piggybacks off Sprint and T-Mobile's networks.
There have been rumors that Apple is similarly mulling an MVNO business, although the iPhone maker has not disclosed any plans.
At a Tuesday launch event in Beijing, Xiaomi, which was valued at $45 billion after a December funding round, also unveiled its new flagship handset called the Mi 4c, a 1299 yuan ($203.76) Android smartphone featuring a Qualcomm processor, 5-inch display and 13-megapixel camera.
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1ccdbafcd2b7d3929a457f41d6670def | https://www.cnbc.com/2015/09/22/clinton-adds-details-to-plans-on-prescription-drug-costs.html | Clinton adds details to plans on prescription drug costs | Clinton adds details to plans on prescription drug costs
Hillary Rodham Clinton is laying out a new plan to rein in the rising cost of prescription drugs, seeking to build upon President Barack Obama's health care law.
The Democratic presidential candidate's proposal aims to cap monthly and annual out-of-pocket costs for prescription drugs to help patients with chronic or serious health conditions. It would also deny tax breaks for televised direct-to-consumer advertising and require drug companies that receive taxpayers' support to invest in research and development.
"We will start by capping how much you have to pay out of pocket for prescription drugs each month. And we're going to hold drug companies accountable as we work to drive down prices," Clinton said Monday at a campaign event in Louisiana.
Democratic Presidential candidate Hillary Clinton speaks during a community forum on substance abuse September 17, 2015 in Laconia, New Hampshire.Getty Images
Clinton was outlining details of her plan Tuesday at a community forum in Des Moines, Iowa, part of a weeklong push to defend Obama's health care law. The former secretary of state has credited the law with driving down the rate of uninsured Americans and chastised Republicans who have sought its repeal.
Once a political liability for Democrats, the overhaul has been credited with helping reduce the number of uninsured people from 48.6 million in 2010 to 29 million people in the first three months of 2015. Clinton's campaign, however, said a typical senior on Medicare spends more than $500 annually on out-of-pocket costs to buy prescription drugs and those with chronic health conditions or serious illnesses can spend thousands of dollars a year outside their coverage.
Health care and the rising cost of prescription drugs are expected to be a dividing line in the 2016 campaign. Clinton's main challenger, Vermont Sen. Bernie Sanders, has campaigned on the creation of a single-payer health care system and introduced legislation earlier this month that would allow Medicare to negotiate lower drug prices with pharmaceutical companies and let consumers import prescription medication from Canada, where costs are cheaper.
Republicans accused Clinton of embracing the health care law to draw attention away from inquiries over her use of a private email system as Obama's secretary of state. "By doubling down on a failed law voters have always opposed, Hillary Clinton is once again reminding them how out of step she is with them on the issues," said Republican National Committee spokesman Michael Short.
As she did during her 2008 presidential campaign, Clinton would seek to allow Medicare to use its large purchasing power to negotiate lower drug prices.
Her plan also seeks to increase competition for traditional generic versions of specialty drugs to drive down prices and offer more choices to consumers.
Clinton aides said a central component of the proposal would require health insurance plans to place a monthly limit of $250 on covered out-of-pocket prescription drug costs for individuals. The campaign estimated up to 1 million Americans could benefit from the proposal annually.
Her campaign said the proposal would seek to curb the amount of money drug companies spend on advertising and create a mandatory pre-clearance procedure through the Food and Drug Administration for advertising that would ensure the ads provide clear information to consumers.
Defending the health care law, Clinton took a swipe at Louisiana Gov. Bobby Jindal in his own backyard on Monday, saying he had left more than 190,000 people who would have been eligible for Medicaid without coverage because he declined to expand the program.
"He put ideology ahead of the well-being of the people and the families in this state," she said in Baton Rouge, Louisiana.
Jindal, who has made the repeal of the health care law a centerpiece of his Republican presidential campaign, said in an interview that it was "appropriate that the godmother of Obamacare would be in Louisiana promoting socialized medicine."
"I think that Obamacare is just a step towards more government control, more socialized medicine and I think that's bad for us," he said.
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860112499ed19ede611e6af04b56bcc5 | https://www.cnbc.com/2015/09/22/cnbc-media-alert-cnbcs-michelle-caruso-cabrera-sits-down-with-hank-paulson-former-us-treasury-secretary-today-on-cnbcs-closing-bell.html | CNBC Media Alert: CNBC’s Michelle Caruso-Cabrera Sits Down with Hank Paulson, Former U.S. Treasury Secretary, Today on CNBC’s “Closing Bell” | CNBC Media Alert: CNBC’s Michelle Caruso-Cabrera Sits Down with Hank Paulson, Former U.S. Treasury Secretary, Today on CNBC’s “Closing Bell”
WHEN: TODAY, TUESDAY,SEPTEMBER 22ND AT 3PM ET
WHERE: CNBC'S "CLOSING BELL"
CNBC's MichelleCaruso-Cabrera will sit down with Former U.S. Treasury Secretary Hank Paulsontoday, Tuesday, September 22nd at 3pm ET on CNBC's "Closing Bell." Topicsinclude U.S. / China relations, currency and doing business with China, amongothers.
About CNBC:
With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD , CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to approximately 371 million homes worldwide, including more than 100 million households in the United States and Canada. CNBC also provides daily business updates to 400 million households across China. The network's 15 live hours a day of business programming in North America (weekdays from 4:00 a.m. - 7:00 p.m. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. CNBC at night features a mix of new reality programming, CNBC's highly successful series produced exclusively for CNBC and a number of distinctive in-house documentaries.
CNBC also has a vast portfolio of digital products which deliver real-time financial market news and information across a variety of platforms. These include CNBC.com, the online destination for global business; CNBC PRO, the premium, integrated desktop/mobile service that provides real-time global market data and live access to CNBC global programming; and a suite of CNBC Mobile products including the CNBC Real-Time iPhone and iPad Apps.
Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://www.nbcumv.com/mediavillage/networks/cnbc/.
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95c6b3bc9fcd9e4356644443c274a35e | https://www.cnbc.com/2015/09/22/college-rape-crisis-in-america-under-fire.html | One of the most dangerous places for women in America | One of the most dangerous places for women in America
In August 2013, Jackie Reilly was like any other college student. The 19-year-old had dreams. She had goals. And she was excited to begin her sophomore year at Syracuse University.
A peer advisor and member of Alpha Xi Delta, Jackie was happy to be reunited with her sorority sisters. On her second night back on campus, she and her friends headed to Syracuse's fraternity row for a night of celebrating. At about 1 a.m. she met up with a male classmate who had been messaging her online but whom she had never seen before in person.
With her friends beside her, the two chatted. Then he poured Jackie a drink and handed it to her—and that's the last she remembers before waking up, nine hours later, in a strange room, naked and disoriented. Hovering over her, fully clothed, was the same boy who'd poured her the drink the night before.
Medical reports from a local hospital later confirmed what Jackie already knew: She'd been raped.
Jackie, now a Syracuse senior, will forever question whether she'd been slipped a drug that night. "When I woke up, I didn't feel right. I was drowsy, unable to move," she said. "But the hospital didn't have a date-rape drug test, so I can't prove it." In addition, Jackie said that because she had removed her clothes and showered before seeking medical attention, the evidence was now damaged.
(Left to right) Julie Gelb, Jackie Reilly and Caroline Heres, the Syracuse students who founded The Girl Code Movement, an organization to unite college women to become active operatives to stop rape from happening.© 2013 Taylor Lauren Barker
Unfortunately, stories like Jackie's are not uncommon.
For freshman, the first six weeks of college—between student orientation and Thanksgiving break—are considered the "red zone." The time first-year students are at greatest risk of sexual assault. That is because freshman are in new surroundings, most experiencing independence for the first time. They are new to the campus, which in turn makes them more vulnerable.
According to a new report released Monday by the Association of American Universities, nearly 1 in 4 college women say they are sexually assaulted before they graduate. This is based on the responses of approximately 150,000 students at 27 top universities polled last spring. (Sexual assault is defined as any involuntary sexual act in which a person is coerced, or physically forced to engage in, against their will.)
These numbers are much higher than the 1 in 5 statistic reported in 2014, which prompted the Obama administration to create the White House Task Force to Protect Students from Sexual Assault. Since then there has been a national push to explore the incidence of sexual assault on America's college campuses.
The White House task force's first report, "Not Alone," also found that 3 out of 4 women sexually assaulted are either freshman or sophomores, and 84 percent of the time the perpetrator is another student. In the majority of cases, the victim knows her attacker, whether as an acquaintance, classmate, friend or (ex)-boyfriend.
The report also revealed that, like Jackie, many of the victims are "survivors of 'incapacitated assault': they are sexually abused while drugged, drunk, passed out, or otherwise incapacitated."
Jackie chose not to file charges against her attacker and has never identified him publicly, but she did file a no-contact order. Keeping silent is not unusual: 95 percent of attacks go unreported, according to the American Civil Liberties Union. This is partially due to the social stigma surrounding sexual assault or fear of blame, say experts.
For those cases that are reported, a large number of them simply get swept under the rug by college administrators, a violation of the Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act, which requires colleges and universities participating in federal financial aid programs to maintain and disclose campus crime statistics and security information.
But thanks in part to a number of student activists, we may see some sweeping changes. Activists like Columbia University student Emma Sulkowicz, who carried her dorm room mattress all over campus last year to protest the school's failure to expel the young man who she says raped her the first day of her sophomore year. (The student she accused, Paul Nungesser, filed a gender-based harassment and defamation suit against Columbia in April, according to NBC New York.) And the many young men and women who shared their stories of abuse by both their attackers and their schools in the CNN documentary film "The Hunting Ground."
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"Sexual violence on college campuses has been a problem for a really long time. What's changed is that it's been elevated to the level of national discussion," said Sarah McMahon, associate director, Center on Violence Against Women & Children, School of Social Work, at Rutgers University. This is partly due, she said, "to the numerous student activists around the country that have protested about how their cases of sexual violence have been mishandled."
Hillary Clinton has just announced her own proposal to combat this crisis. It includes a survivor support network and prevention programs.
According to a 2014 report prepared by the U.S. Senate Subcommittee on Financial & Contracting Oversight at the request of Missouri Democratic Sen. Claire McCaskill, out of a sample of 440 colleges and universities, more than 40 percent of them failed to conduct a single sexual violence investigation in the past five years and more than 10 percent do not have a Title IX coordinator on staff, as required by law. A Title IX coordinator is responsible for coordinating an institution's compliance efforts, including investigations of sexual harassment and sexual violence.
There are 139 colleges being investigated over concern about whether the schools violated Title IX in their handling of sexual violence cases, said the U.S. Department of Education's Office for Civil Rights in an email to CNBC. This is up from 55 cases under investigation in May 2014.
Among those on the hot seat: Harvard, Cornell, Vanderbilt, Johns Hopkins, Occidental College, Stanford and Brown. If these schools are indeed found guilty and refuse to address the problems identified by the OCR, they could lose their federal funding.
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"There is a real obvious conflict of interest" when it comes to reporting sexual crimes on campus, said Sarah Merriman, a spokeswoman for the advocacy group SAFER, Students Active for Ending Rape. "The people who are supposed to be advocating for survivors have been hired by the school and need to keep their jobs." She added that administrators feel that if they acknowledge campus rape, it will ruin their image.
Merriman, a 2012 graduate of Boston University, is herself a survivor, and she understands fully what it's like to shoulder this trauma and have nowhere to turn. "Survivors often have no clear path to follow, and the police can be very callous," she said. "Schools like to pretend that there isn't a rape culture problem and that they are a very caring university."
Merriman spoke of one activist who worked in BU's Center for Gender, Sexuality, and Activism (CGSA) that repeatedly tried to establish a sexual assault prevention program at the university but was met with a wall of bureaucracy and budget issues. Then, in the beginning of 2012, there were reports of sexual attacks by some members of the BU hockey team, she said.
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With students looking to the CGSA for guidance, a group of student activists decided once again to approach the BU administration about a rape crisis center, submitting 1,000 signatures from the student body and an exhaustive 20-page proposal, which requested, among other things, bystander intervention training, crisis counselors and prevention specialists. Two months later BU approved it, she said, and in the fall of 2012, the Boston University Sexual Assault Response and Prevention Center opened its doors.
"The university has a comprehensive, professional and supportive response system to reports of rape or sexual assault—an issue we take most seriously," said Boston University spokesperson Colin Riley.
With last year's creation of the White House task force and the "It's On Us" campaign—an initiative that asks men and women across America to step off the sidelines and help to stop sexual assault on college campuses—colleges and universities have come under fire to amend their codes of conduct and refine definitions of consent.
Senators and other legislators are passing laws to make campuses safer, such as New York Gov. Andrew Cuomo's "Enough Is Enough" law and California's Bill 967, which requires an "affirmative, unambiguous, and conscious decision by each participant to engage in mutually agreed-upon sexual activity."
And on September 14, Hillary Clinton introduced the issue for the first time on her campaign trail, telling college students at a "Women for Hillary" event in Cedar Falls, Iowa, about her own proposal to combat this crisis, including a comprehensive support network for sexual assault survivors, more focus on disciplinary proceedings for both accusers and the accused and starting sexual violence prevention programs earlier in schools.
Yet even so, there is little hope that the issue will improve anytime soon. "There are some really great policies on the books, but I still don't see any follow-through," said Merriman.
So like Boston University's Merriman and Columbia University's Emma Sulkowicz, courageous students—both male and female—are continuing to speak out, refusing to be silenced until the crisis stops.
After Reilly shared the story of her rape with two of her sorority sisters, Julie Gelb and Caroline Heres, she discovered that they, too, were survivors of sexual assault, incidents that took place outside the Syracuse campus.
Together the girls founded The Girl Code Movement, a college-focused anti-sexual assault organization. Its mission: to teach college women to become empowered bystanders, identifying at-risk women and taking action to stop a rape from happening. They are unwavering in their efforts to teach the importance of bystander intervention, continuously presenting their message to the sororities and fraternities on campus.
"If everyone speaks up in these moments, fewer cases of sexual violence will occur. ... At the time of our assaults, there were witnesses before the rapes took place—witnesses that could have stepped in to make sure we were okay, that we were consenting to the actions put upon us," said the three co-founders in a 2014 blog post.
Out of a sample of 440 colleges and universities, more than 40 percent of them failed to conduct a single sexual violence investigation in the past five years.U.S. Senate Subcommittee on Financial & Contracting Oversight
Students at Dover-Sherborn Regional High School in Dover, Massachusetts, sign a pledge that they will join in the fight to stop sexual assault on college campuses.Source: SWEAR
Yet Rutgers' McMahon and SAFER's Merriman firmly believe that education must start long before college.
Through their organization SWEAR—Stand With Everyone Against Rape—four boys from Dover-Sherborn Regional High School in Dover, Massachusetts, are breaking ground, educating teenage boys in high schools on the myths, stereotypes and repercussions of sexual assault.
One of its members, Will Little, was a close friend of Jackie Reilly's, so when he'd learned of her alleged sexual assault, he immediately responded with a call to action. Together with classmates Justin Seymour, Sam Scatchard and Gabe Leeman they stood in front of their fellow students at Dover-Sherborn and revealed the startling statistics about sexual assault on college campuses across America. Afterward the young men asked the male students to sign the SWEAR pledge to take a stand against rape. The assembly was so well received, the SWEAR team has now been invited to give their message to students at other Boston-area schools.
"It's about changing the attitude. It's about leadership and peer pressure—in a good way. We tell the students, instead of standing by and being uncomfortable speaking up, they should be uncomfortable about NOT speaking up," said Little.
"There's only so much schools can do," said Little. "It's more on the students to be able to stop it. The [administrators] are not going to be at these parties, where it's happening."
This story has been updated to reflect that nearly 1 in 4 women are sexually assaulted before graduation.
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83528a591a71ba0ad4d0a01521c285aa | https://www.cnbc.com/2015/09/22/could-clinton-be-worse-for-biotechs-than-obamacare.html | Could Clinton be worse for biotechs than Obamacare? | Could Clinton be worse for biotechs than Obamacare?
Hillary Clinton's promise of a clampdown on biotech drug pricing Monday is already causing consternation in the sector.
After Clinton tweeted that she was going to on Monday, the biotech ETF (IBB) closed down -4.48 percent, its worst daily performance since December 23, 2014 when it lost -4.66 percent.
Democratic Presidential candidate Hillary Clinton speaks during a community forum on substance abuse September 17, 2015 in Laconia, New Hampshire.Getty Images
The former Secretary of State, who is currently campaigning for the Democratic Presidential nomination in 2016, appeared to have been spurred on by a 5,000 percent rise in the price of a medicine known as Daraprim, which has been on the market for decades, after it was purchased by Turing Pharmaceuticals. She will outline her plans later on Tuesday.
"All of our intelligence says that it is going to be very hard for Hillary, or any other candidate, to really have a profound impact on drug pricing," Brent Saunders, chief executive of Allergan, told CNBC Monday.
"That being said, we have to take this very seriously because it creates a lot of pressure on the system."
Both pharmaceuticals and biotech stocks, after initially taking a hit from the introduction of the Affordable Care Act, in 2010 also known as Obamacare, have rallied in recent years.
Read More
Biotech medicine prices have been on the rise as companies move into more specialized diseases, which have a smaller patient population, and try to get back the money back which they have spent on research and development via higher pricing. This has meant that $100,000 plus drug courses have become closer to the norm for the most advanced treatments.
Rafe Swan | Getty Images
The U.S. is almost always the market which pays the highest prices, as in other countries with fewer potential payers those payers can negotiate harder on price.
However, the U.S. also tends to be the market which gets the most innovative new treatments first.
Part of the reason for the big declines seen in stocks on Monday may be that there has been some froth in the market, spurred on by what is shaping up to be a record year for mergers and acquisitions.
Deals worth nearly $300 billion have already been announced this year, up nearly 50 percent from the same time in 2014, according Dealogic data.
This also looks set to be a record year for fundraisings in the sector, with a total of $8.5 billion raised so far this year – the previous full-year record for the sector is $11.6 billion in 2010.
Medical device companies have also seen increased interest, with both UBS and Moody's issuing positive notes on the sector recently. This is in part because of a surge in M&A activity, and also because of the increase in hospital admissions following the Affordable Care Act, which seems to be offsetting some of the losses felt following an extra tax imposed as part of the ACA.
Nonetheless, there is still plenty of life in the sector. Despite yesterday's falls, biotech stocks are still outstripping the performance of the rest of the Nasdaq year-to-date. And, of course, Clinton may not win next year – she hasn't even secured the Democratic Party's nomination yet.
Follow Catherine on Twitter: @cboylecnbc
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a91579a04d38a8438c9b149daf626820 | https://www.cnbc.com/2015/09/22/cramer-an-unknown-stock-screaming-to-be-bought.html | VIDEO6:4406:44Cramer: This stock could turn on a dime Mad Money with Jim Cramer
In the current market environment, Jim Cramer knows that it is very hard to find new stocks that are roaring higher.
That is why the "Mad Money" host decided to go off the charts to speak with Bruce Kamich, a market technician who is a professor at Baruch College and colleague of Cramer's at RealMoney.com.
Kamich has found a stock that has been on fire and could keep skyrocketing. Chances are, investors may have not heard of this stock before.
Tyler Technologies is the country's largest provider of integrated software and information technology systems used exclusively by the public sector. It helps cities, states, counties, school districts and other local government entities run more efficiently.
Last week, Kamich took a look at the weekly chart of Tyler and was stunned at what he saw.
"It's the kind of chart that jumps out at you and screams 'buy me,'" Cramer said.
It's the kind of chart that jumps out at you and screams buy meJim Cramer
What made this stock so attractive to Kamich was the action on the charts stemming all the way back to 2011. It traded in the low teens back in 2011, and slowly crept up to $105 at the beginning of last year. It was slammed with the rest of technology in the spring of 2014 and pulled back to $75, and closed at $148 on Tuesday.
Not only is that an amazing trajectory, but Kamich thinks this stock has more room to run. Looking at the daily chart of Tyler, Kamich noted that it has been rallying steadily higher in a staircase pattern. This pattern is often regarded as a bullish formation.
Based on what is happening in the charts, Kamich believes this stock could roar up to $200. He recommended buying the stock on a pullback down towards the $140 level, and would put a stop loss in and start selling below $130 because that would suggest the uptrend has been broken.
"I would never recommend a high-flying tech stock that you have never even heard of before without also digging into the fundamentals, the facts about the actual company and how it is doing," Cramer said.
Cramer found that state and local governments spent $9 billion on vertical specific software last year, and that number is expected to grow to $13 billion by 2019. Additionally, many public institutions are still using very old legacy systems that need modernization.
Read more from Mad Money with Jim Cramer
Cramer Remix: The right time to raise rates Cramer: I was wrong—run far away from this stock Cramer's warning: Market is unsafe, unsustainable
Tyler has a cloud based software-as-a-service side of the business that has been growing tremendously, as the company had 42 percent subscription growth last year. The company also delivered a fantastic beat and raise quarter when it reported in July.
So while the stock is expensive at 48 times next year's earnings estimates, Cramer does acknowledge that there are some risks with a stock that has such a lofty valuation, regardless of how it is doing.
"I'm only blessing Tyler for speculation, because if our economy takes a hit and those local tax receipts start falling, then this stock could turn on a dime," Cramer said.
Questions for Cramer? Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine
Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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54cb66e9bbb918040cb2d31c84f4cba8 | https://www.cnbc.com/2015/09/22/cramer-remix-my-prediction-for-volkswagen.html | VIDEO1:3001:30Cramer’s prediction for VolkswagenCramer Remix
Jim Cramer had a hunch that there must be other reasons why the market keeps going down, besides the recent drama of the Fed.
"I see three real worries that have people buzzing, and I want to point them out, not to scare you, but to help explain how foreign markets are connected with ours," the "Mad Money" host said.
The first worry concerns Volkswagen, one of the largest makers of automobiles in the world. The campaign of fraud that this gigantic company has committed is far worse than anything Cramer can recall from any global company. The U.S. Justice Department could regard the rigging of emissions tests as criminal conspiracy, and it's now bent on going after the individuals involved.
"A gigantic company that is going to be slaughtered worldwide certainly pops as a sticking point in your stock craw," Cramer said. (Tweet this)
The second worry pertains to Glencore, a natural resource company based in Switzerland that has immense commodity exposure. The company raised money in the equity markets recently, but its stock has fallen to an all-time low as investors worry about its exposure to declining commodity prices.
Cramer doesn't know if investors are right to be concerned, but he certainly can't rule it out.
The third worry out there involves Petrobras, the huge Brazilian oil company that has issued an immense amount of bonds, most of which are in a pullback. It was once among the largest companies in the world, and now has fallen 44 percent this year, down to $4.
What really worries Cramer the most is Petrobras' $170 billion in debt. Given the steep decline in oil, how the heck will it make interest payments, given the way its debt is configured?
"This company has some amazing properties, but its balance sheet is way overlevered," Cramer said.
Read More Cramer: 3 big stock worries of money managers now
A sign marks the location of a Volkswagen dealership in Evanston, Ill.Getty Images
Cramer certainly does not like the setup of the market right now, and he's fixated on the fact that this week is historically one of the weakest of the year. But just because Cramer is negative about the market environment doesn't mean there aren't money-making opportunities available for investors.
"You think I don't want to be more bullish? But many sectors, like commodities, like industrials, like financials, like drugs, just trade horribly. I will not choose to be oblivious. My first goal is to do no harm, and I see many stocks in harm's way," the "Mad Money" host said.
Nevertheless, Cramer will not let the entire market get him down. There are some stocks that are going down and shouldn't be, and they could pose a major opportunity.
Sometimes Cramer has to go to great lengths to keep investors interested in the stock market, even in a brutal market like it was on Monday. So now that football season is in full swing, Cramer is drafting his fantasy stock portfolio.
Defense stocks may be one opportunity because of the sheer amount of conflict around the globe right now. Cramer sees that the U.S. has finally decided to stop acting like the globe's policeman, forcing other countries to arm and defend themselves.
Companies like Raytheon, Northrop Grumman and Lockheed Martin are reaping the rewards from huge international sales as a result.
Read More Cramer: Snatch up these money-making opportunities
After all, Cramer says that building a good fantasy football team is just like building a good stock portfolio, except the NFL is more mesmerizing than the S&P 500.
That is why this week Cramer drafted players for what may be the most important position in football, the running back. This position is one of the core producers for a fantasy football team, as owners depend on them to get a large portion of their team's points each week.
"In fantasy football a lot of people like to have a tandem of multiple styles of running backs for their team. Ideally, you want both a downhill running who is a real bruiser, along with a shiftier player who uses finesse to get results," Cramer said.
With this in mind, Cramer selected a downhill runner like Matt Forte of the Chicago Bears for knowing his core competencies and executing time and time again. Likewise, that is Honeywell for Cramer, because it is all about inventing new technologies and has a high level of consistency.
The "Mad Money" host also decided to go off the charts to speak with Bruce Kamich, a market technician who is a professor at Baruch College and colleague of Cramer's at RealMoney.com.
Kamich has found a stock that has been on fire and could keep skyrocketing. Chances are, investors may have not heard of this stock before.
Tyler Technologies is the country's largest provider of integrated software and information technology systems used exclusively by the public sector. It helps cities, states, counties, school districts and other local government entities run more efficiently.
Last week, Kamich took a look at the weekly chart of Tyler and was stunned at what he saw.
"It's the kind of chart that jumps out at you and screams 'buy me,'" Cramer said.
Read More Cramer: An unknown stock screaming to be bought
In an ugly market like this one, Cramer wants to make sure that investors have their shopping list handy of stocks to buy into weakness. And while the banks are out of favor right now, Cramer thinks there is one bank that is absolutely worth buying into weakness.
Cramer considers Wells Fargo to be the best-run bank in the U.S. and owns it in his charitable trust. Last week, he had the chance to speak with the chairman and CEO, John Stumpf, who discussed the personal perspective and values that have brought him success.
"We grew up, as you suggested, very poor—a lot of children, small farm. We didn't have things, but we had values. At the time, I'll be honest; I wish I had more things. Now, when I look back the value of working together, telling the truth, personal responsibility, pulling your load and we were never allowed to whine. If things didn't work, you get up the next morning and work even harder," Stumpf said.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
Corning: "I'm not really a fan. I think that it has just been a stock that has just doesn't have the kind of growth technology that I like. It's not expensive, but I see no catalyst, is the problem."
Statoil ASA: "5.9 percent yield but not a lot of growth, I prefer Occidental. My charitable trust owns it. OXY has a little bit lower yield and a little more growth."
Read More Lightning Round: This stock has no catalyst
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17566f53db39517d3a240b357bfa7847 | https://www.cnbc.com/2015/09/22/dont-count-on-a-very-merry-christmas.html | Don't count on a very merry Christmas | Don't count on a very merry Christmas
VIDEO0:4100:41Shoppers to scale back Christmas spendingRetail Sales
Retail's tug of war has begun, and it's shaping up to be a draw.
One on end of the rope is a tightening labor market, rising home values and seasonal gas prices that have hit an 11-year low. On the other end is an uncertain stock market, slowing global growth, and a consumer base that is shelling out more on rent and experience-based purchases.
The end result, according to three separate sales forecasts released Wednesday, is a holiday season that shouldn't cause retailers to hit the panic button—but also doesn't signal robust growth.
"Ultimately we're seeing a holiday that's going to be a fair amount below the trailing five- and 10-year averages," said Noam Paransky, director in the retail practice at AlixPartners consulting firm. "It's certainly not going to be a holiday for the ages."
People shop in the Manhattan Mall in New York City.Getty Images
By using a model developed in 2012, which has determined that 66.2 to 66.4 percent of annual retail sales occur through August, AlixPartners predicts holiday sales will rise between 2.8 and 3.4 percent during the November to December period. That would compare to 4.4 percent growth last year (both figures exclude motor vehicles, food services and dining, and gas stations).
Similarly, Deloitte's holiday forecast (which excludes motor vehicles and gasoline) calls for a sales increase of between 3.5 and 4 percent from November through January—a growth rate below last year's 5.2 percent gain.
Deloitte's estimate includes the month of January, to account for purchases made with gift cards. Sales from gift cards, which account for roughly $30 million in consumer spending each holiday, are not included in companies' results until the cards are redeemed.
"While retail holiday sales are expected to rise, the increase may be smaller than last year due to the lingering effects of flat personal income growth in the first quarter," said Daniel Bachman, Deloitte's senior U.S. economist.
Calling Christmas before you've started shopping
Although the broader economy is improving, there are issues weighing on both high- and low-income consumers. For the average U.S. household, Rod Sides, leader of the retail and distribution practice at Deloitte, said personal income growth (or in this case, the lack thereof) typically correlates more closely with spending patterns than market volatility.
But AlixPartners' Paransky emphasized that the high-end consumer, who tends to be the one investing in the market, "has been carrying quite a bit of the weight in retail activity for the past few years." As the market continues to wobble, wealthy consumers could rein in their spending, Paransky said.
His hypothesis is backed up by a separate report released Tuesday by the American Affluence Research Center. According to the AARC, holiday gift spending by the 12 million U.S households with a minimum net worth of $1 million is expected to reach an average $2,749 this year. Although that would represent 4 percent growth, it's a deceleration from last year's actual reported spending of nearly 6 percent.
Ron Kurtz, president of the research organization, noted that respondents typically end up spending more than they say they will. Still, he expects market volatility to negatively affect the mood of the wealthy, he said.
Amazon hiring more than Penney's, Walmart combined
AARC estimates that the amount spent on holiday gifts by the affluent will be about four times that of the average U.S. household. Overall, it said these households account for about 40 percent of consumer spending.
"They understand that there's a slowing global economy and that threat may impact their next couple of years," Paransky said.
Aside from economic concerns, consumers are also spending a larger share of their cash on travel and dining out, and less on material objects. And while inflation remains fairly low, they're also shelling out significantly more on rent.
According to a report released Tuesday, a growing number of U.S. households are putting more than 50 percent of their income toward paying rent.
"That's certainly going to have an impact on what consumers are willing to spend," Sides said.
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6e45c194172a42ee9139b70c2a5a3b9a | https://www.cnbc.com/2015/09/22/early-movers-msft-dri-gis-azo-jnj-dd-bac-more.html | Early movers: MSFT, DRI, GIS, AZO, JNJ, DD, BAC & more | Early movers: MSFT, DRI, GIS, AZO, JNJ, DD, BAC & more
A trader works on the floor of the New York Stock Exchange.Getty Images
Check out which companies are making headlines before the bell:
Microsoft — The software giant released the latest version of its Office software suite, with enhanced collaboration features among the more notable changes.
Darden Restaurants — The parent of Olive Garden and other restaurant chains earned an adjusted 68 cents per share for its latest quarter, 10 cents above estimates, with revenue also above forecasts. Same-restaurant sales were up by 3.4 percent, with overall sales rising for a sixth straight quarter.
General Mills — The food maker beat estimates by 10 cents with adjusted quarterly profit of 79 cents per share. Revenue was slightly below analyst forecasts, but restructuring and cost controls are helping the company's bottom line.
AutoZone — The auto parts retailer earned $12.75 per share for its latest quarter, 6 cents above estimates, with revenue also above analyst forecasts. Same store sales rose 4.5 percent during the quarter.
ConAgra — The food producer earned an adjusted 45 cents per share for its latest quarter, beat estimates by 5 cents. The company expects to see continued profit margin expansion, but warns that currency issues will impact profits in its consumer foods segment for the current quarter.
CarMax — The auto retailer reported profit of 82 cents per share, 6 cents above estimates, with revenue slightly shy of analyst projections. Comparable store sales were up 4.6 percent from a year earlier.
Johnson & Johnson — The stock was rated "buy" in a new report on the health care sector at UBS, which says global competitors "of scale" are thriving in a realigned health economy.
DuPont — Citi upgraded the stock to "buy" from "neutral." Citi points to a 30 percent decline in the shares so far this year, and that long-term, the chemical maker as a number of significant ways to increase shareholder value.
Jack In The Box — Jack In The Box announced a new $200 million share buyback program for fiscal 2016. The restaurant chain bought back $100 million in stock in fiscal 2015.
J.M. Smucker — Smucker announced a secondary offering of nearly 8.3 million shares, to be sold by shareholder Blue Holdings. The food maker will not receive any proceeds from the sale.
Bank of America — The bank's shareholders will vote today on whether to separate the chairman and CEO roles, currently both held by Brian Moynihan. A number of pension funds who hold Bank of America shares have already indicated they will vote to separate the two jobs.
Mosaic — The fertilizer producer reduced its current quarter production outlook in the wake of soft demand in the fertilizer market. It will also extend production downtime at a key mine in Canada.
Thor Industries — Thor reported quarterly profit of $1.31 per share, beating estimates by 1 cent, though revenue came in below forecasts. The recreational vehicle maker saw slower sales of RVs, but its overall results were helped by its acquisition of Postle Aluminum in May.
AmerisourceBergen — The drug distributor announced a $2.4 billion share repurchase program. The drug distributor is taking the action to offset possible dilution from the exercise of warrants that it had issued to Walgreens Boots Alliance.
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71e31e2b2fffb9b9add6cec38206f982 | https://www.cnbc.com/2015/09/22/europe-split-widens-over-how-to-handle-migrant-crisis.html | Europe to relocate 120,000 migrants: Reports | Europe to relocate 120,000 migrants: Reports
VIDEO3:2503:25Migrant crisis: Finding a coherent responseWorldwide Exchange
VIDEO2:4902:49EU ministers meet to solve migrant crisisSquawk Box Europe
VIDEO0:5700:57Migrant summit: Will an answer be found? Worldwide Exchange
VIDEO3:1803:18Europe must grapple with asylum issueWorldwide Exchange
European Union (EU) ministers voted to launch a scheme to redistribute 120,000 asylum seekers around the region on Tuesday, according to Reuters, which cited diplomats.
However, a deep divide is emerging across the EU, with one side calling for further controls and the other pushing for each country to do their part, against a backdrop of widespread border confrontations and chaos.
Hungary's Prime Minister Viktor Orban is one of the most vehement opponents to a EU-wide quota system proposed by the 28-country group's leaders. Addressing parliament on Monday, he said migrants were "now not just knocking on our door, but breaking it down," a statement on the government's website said.
The country's parliament Monday authorized the government to deploy the army to use "non-lethal" force such as rubber bullets, tear gas and net guns on the crowds of migrants trying to gain entry to Europe, Reuters reported.
Read More Europe in disarray: Borders close amid migrant crisis
Migrants wait in a holding area across from the Croatian border after walking the last few kilometers from Serbia to Croatia on September 21, 2015.Carsten Koall | Getty Images
Hungary joins Poland, Hungary, the Czech Republic and Slovakia in opposing the quota system, saying it will only encourage more asylum seekers to come to Europe. However, countries like Germany say it is fairer for all countries to play their part in helping to alleviate the strain on southern European countries where migrants are arriving, mainly after harrowing journeys over land or across the Mediterranean.
On Tuesday, EU interior and justice ministers convened in Brussels and on Wednesday EU leaders are meeting for an extraordinary summit.
Ahead of the meeting, the president of the European Council, Donald Tusk, warned that Europe had lost control of its borders, a comment borne out by chaotic scenes of authorities struggling to cope and restrain the flow of refugees. Europe has been criticized by charities for failing to deal with the crisis, and its causes rooted in civil wars and conflict in the Middle East and Africa, earlier.
Read More Migrant crisis: Hungarian riot police tear gas migrants
Europe is has seen 500,000 migrants enter the region so far this year, many fleeing from civil war in Syria in the Middle East, according to Frontex, the EU's border protection agency. The strain of the numbers arriving is being felt across the continent although some countries are affected more than others.
Becoming increasingly overwhelmed with the thousands of migrants arriving, Hungary closed its borders with its Balkan neighbour Serbia by building a fence forcing the asylum seekers to enter neighboring Croatia, which now says it is struggling to cope with the numbers arriving as a result.
Those countries are being used by thousands of migrants as a conduit to bother enter the European Union and to get to more prosperous northern countries like Germany and Austria.
While Hungary may be concerned about migrants, economists say ageing Europe could well do with an influx of young, eager workers.
"We believe that net migration for the euro area and for Germany is positive for growth," Credit Suisse economists predicted in a note on Monday.
Read MoreFour reasons why Europe's migrant crisis matters
"In the short term, it should add to economic growth (and) in the longer term, the fact that migrants are mainly young increases the working age population and addresses worrying demographics and pension dynamics in the euro area."
Credit Suisse believed that over the next five years, net migration would boost the euro area's population by 5 million, equivalent to 1.5 percent of the current 340 million population.
- By CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt. Follow us on Twitter: @CNBCWorld
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7162e6bfc342685b25f4e2d0107daa1e | https://www.cnbc.com/2015/09/22/europe-will-receive-up-to-1m-asylum-applications-this-year-oecd.html | Europe will receive up to 1M asylum applications this year: OECD | Europe will receive up to 1M asylum applications this year: OECD
VIDEO0:5100:51OECD's international migration outlook 2015
Europe has received 700,000 asylum applications so far this year, compared to 630,000 for the whole of 2014. This figure could reach a million by the end of the year, according to the latest policy briefing from the Organization for Economic Co-operation and Development (OECD).
The last time the number of applications to Europe reached 630,000 was in 1992 during the conflict between Serbia and Bosnia. In addition, the OECD expects between 350,000 to 450,000 applications to be granted, which would be more than any previous refugee crisis since World War II.
However, the Paris-based body claims Europe is better prepared than ever before to deal with the migrant crisis that has dominated headlines for the past few months.
"Europe has better legal and institutional systems in place for asylum-seekers and migrants than it did in the 1990s," the OECD writes in its report published Tuesday.
"However, these have not ensured a fair burden-sharing between countries, and have not prevented people from choosing smuggling routes."
A group of migrants walk on the Serbian side of the border with Croatia, near Sid, Serbia September 16, 2015. Barred from Hungary, migrants walk through cornfields into the European Union via Serbia's western border with Croatia on Wednesday, opening a new front in the continent's migration crisis.Antonio Bronic | Reuters
The report includes a number of revealing statistics about the current European migrant crisis, such as how Syrian refugees tend to be better-educated than other groups.
"According to Statistics Sweden, more than 40 percent of Syrians in the country in 2014 have at least upper secondary education, compared to 20 percent of those from Afghanistan and 10% for those coming from Eritrea," the report states.
Read MoreHow smartphones are helping refugees in Europe
The International Rescue Committee (IRC), which has been helping migrants and refugees arriving on the Greek island of Lesbos, called on European leaders to find a solution to the crisis in light of the OECD's findings.
"Another 300,000 refugees coming to Europe means another 300,000 people risking their lives crossing choppy seas, arriving on Greek islands without proper facilities and facing fences and troops on Europe's borders," Chelsea Purvis, IRC's policy and advocacy officer, told CNBC in an email.
"EU leaders meeting on Wednesday must agree to share responsibility and support refugees fairly across the continent. Misguided efforts to focus on sealing border crossings will only increase the price refugees pay to criminal gangs to reach the other side."
Read MoreCounting the cost of Europe's migrant crisis
The OECD also noted the potential long-term benefits of migration.
"Europe has the proven capacity and the experience to find means to deal efficiently and appropriately with large migration movements. The work of the OECD shows that migration, if well managed, can play a positive role in the economy and notably that immigrants tend to pay more in taxes and social security contributions than they receive in individual benefits."
But in order to benefit, the report does point out that states will need to ensure migrants gain access to labor markets and are integrated into society, which will require high short-term costs such as housing, schooling and teaching migrants the country's language.
For instance, Germany expects to receive 800,000 asylum-seekers and refugees this year. According to the Ifo, an economic think-tank, this would cost the state ten billion euros.
"It also important to strike the balance between avoiding creating new high concentration areas of recent immigrants and accommodate people where jobs are and not simply cheap housing is," the OECD report adds.
Follow Luke on Twitter: @LukeWGraham
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e4300dbc93761ee724700e48cde93ec1 | https://www.cnbc.com/2015/09/22/fx-markets-least-favored-country-may-recover.html | Where next for Brazil as real hits new record low? | Where next for Brazil as real hits new record low?
The Brazilian real hit a new all-time low on Tuesday after authorities announced a massive austerity package at a time when the economy is shrinking fast.
Reuters
But unlike those euro zone countries that faced similar economic and political straits following the sovereign debt crisis, Brazil's control of its own currency may help it find a way out.
"Really Brazil is in a hole and it's a deep hole and it is going to take many years to get out of that hole. But the situation is quite different to that of Europe," Neil Shearing, chief emerging markets economist at Capital Economics, told CNBC early on Tuesday.
VIDEO2:2402:24Why Brazil's austerity measures are not working
Since the U.S. Federal Reserve's high-profile decision to hold interest rates last week, most emerging market and major currencies have outperformed against the U.S. dollar. The real—together with the Indonesian rupiah—is an exception, with the Brazilian currency reaching a record low of more than 3.99 against the greenback on Monday, before topping 4.06 at one stage on Tuesday. It has fallen by more than 25 percent against the dollar since mid-June, leading Kit Juckes, macro strategist at Societe Generale, to term it "the FX market's least favored country" in a research note on Tuesday.
In addition, Brazilian five-year credit default swaps (CDS) posted one of Monday's worst performances among sovereigns, widening by 31 basis points or 7.9 percent to 426. Widening CDS spreads suggest a rising perception among investors that an entity may default on its debt.
This came after last week's unveiling in Brazil of a $17 billion austerity package for 2016, aimed at plugging a gaping budget hole and restoring investors' depleted confidence in the government. The measures are divided between tax hikes and spending cuts and will likely further knock the popularity of President Dilma Rousseff, who is already facing impeachment calls in relation to a massive corruption scandal.
Meanwhile, the Brazilian economy is shrinking and inflation remains high—a toxic combination known as a "stagflation" that the U.K. suffered in the 1970s. Barclays Research forecasts a sharp 3.2 percent economic contraction in Brazil across 2015 as a whole, with a 1.4 percent quarter-on-quarter seasonally adjusted slump expected in the third quarter. The bank is downbeat for next year as well, forecasting a 1.5 percent contraction in 2016.
Inflation figures published on Tuesday showed trailing 12-month inflation of 9.57 percent, which is more than double the government's 4.5 percent target.
Brazil
"A lot of the headlines today have been about the real touching a record low against the dollar but that is I think actually a good thing because this is the way out for Brazil," Shearing told CNBC.
"The way out is through a weaker currency that helps to rebalance the economy away from domestic and excessive reliance on consumption and perhaps more towards greater investment, encouraging some of that consumption to go into domestic production."
In the meantime, the economic backdrop provides challenges for both international and domestic companies in Brazil. For example, Embraer, an aerospace conglomerate and one of Brazil's biggest companies, has suffered late payments from the government for a major project delivering KC-390 military transport aircraft.
The program is now around 12 months behind schedule, according to Embraer CEO Frederico Curado.
"Of course, the whole situation in the country hurts any company based in Brazil," he told CNBC on Monday.
VIDEO4:0504:05Embraer CEO: We are an atypical Brazilian firmCapital Connection
—By CNBC's Katy Barnato. Follower her @KatyBarnato.
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6a4d0f49f6d9c723a7b9974495f8109f | https://www.cnbc.com/2015/09/22/global-slowdown-fear-accelerates-how-to-trade-it.html | Global slowdown fear accelerates; How to trade it | Global slowdown fear accelerates; How to trade it
Brent Lewin | Bloomberg | Getty Images
Worldwide indexes dropped Tuesday with the major European benchmarks down 3 to 4 percent and the S&P 500 down almost 2 percent. It seems the focus has turned from worry about a Federal Reserve interest rate increase to a very real concern that the globe is heading toward a protracted slowdown.
It started with the Asian Development Bank cutting its economic forecast for the region due to weaker trends in China and India. The ADB revised lower its gross domestic product growth estimates to 5.8 percent from 6.3 percent for 2015 and to 6.0 percent from 6.3 percent for 2016.
And then Credit Suisse added fuel to the negative sentiment by slashing numbers in the mining sector.
"We have cut China demand assumptions, commodity prices and earnings estimates heavily across the board," wrote Liam Fitzpatrick of Credit Suisse in a note to clients Tuesday morning. He added, "Until China demand and emerging market currencies find a floor, it will remain challenging to put an absolute floor on commodity prices."
But the biggest "tell" of them all may be copper. The barometer of global economic health is down 6 percent in three days.
CNBC Pro asked some market experts, as well as ran some quantitative analysis, in order find which securities have the most to lose and the most to gain from a global meltdown.
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c1aabf64d5fa9a11846f32e989ff1b07 | https://www.cnbc.com/2015/09/22/gold-under-pressure-as-dollar-gains-on-us-rate-hike-hopes.html | Platinum at 6½-year low on VW scandal, palladium soars | Platinum at 6½-year low on VW scandal, palladium soars
Getty Images
Platinum fell to a 6-1/2-year low on Wednesday, on fears about reduced demand from the auto sector, where it is used in diesel catalysts to clean up exhaust emissions, while palladium, used in gasoline vehicles, surged 7 percent.
The metal has been hurt by news of Volkswagen AG's falsification of U.S. vehicle emission tests as investors believed it could affect demand for diesel cars.
The price of palladium, the predominant metal used in gasoline catalysts, soared on speculation that the Volkswagen scandal could increase demand for gasoline vehicles, traders said.
Spot platinum fell to its lowest since January 2009 at $924.50 an ounce, and was down 0.8 percent at $926.25.
VIDEO2:0502:05Commodity collapse victimsPower Lunch
Palladium, on the other hand, surged 7.2 percent to $649 an ounce, the highest since mid-July. It later pared gains and was up 6.1 percent at $642.25 an ounce, on track for its biggest jump since December 2009.
"Diesel, which predominately uses a platinum catalyst, may be damaged as an option for car purchasers because of the Volkswagen emissions scandal, which would conversely be a win for palladium," said Ross Norman, chief executive for bullion brokerage Sharps Pixley.
Norman added that he does not expect diesel vehicles to "go away in a hurry" but that the concentration of platinum group metals may need to be increased to achieve the correct emission levels.
"The plunge in platinum prices suggests ... that platinum devices simply can't meet today's increasingly rigorous government standards for cutting diesel emissions," said Adrian Ash, head of research at online dealer BullionVault.com.
"If that idea grows, palladium demand may benefit, if not prices, as petrol engines fill the gap."
Read MoreGold's going back to its lows—how to play it: Trader
Gold firmed, following two days of losses, as the dollar fell as much as 0.2 percent against a basket of leading currencies, while weak Chinese factory data soured investor appetite for risk.
was up 0.5 percent at $1,130.90 an ounce, while the U.S. gold futures contract for December delivery settled up 0.6 percent at $1,131.50 an ounce.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, saw the first inflow in almost a month on Tuesday, supporting prices.
"There is some typical risk-off trade in gold ... but it seems that investors are still very much reluctant to add safe-havens to the portfolios," Julius Baer analyst Carsten Menke said.
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5d4a88514ac9775b2aa470ed462b732f | https://www.cnbc.com/2015/09/22/goldman-1-trillion-opportunity-in-chinese-bonds.html | Goldman: $1 trillion opportunity in Chinese bonds | Goldman: $1 trillion opportunity in Chinese bonds
The Goldman Sachs booth on the floor of the New York Stock ExchangeGetty Images
As China's stock market collapses, Goldman Sachs sees a new investment opportunity in that country: the domestic bond market.
"We expect more channels to be introduced, with significant potential to draw in foreign investment. Should foreign participation catch up to roughly the level of, say, Japan and Australia, the equivalent of around 10 to 20 percent of GDP, that could translate into more than $1 trillion of additional global fixed income investments to be allocated to China domestic bonds in the coming years," analysts Kenneth Ho and MK Tang said in a Tuesday note.
They expect China's bond market, the third largest in the world behind the U.S. and Japan, to more than triple in value from $6.3 trillion to $21.6 trillion in the next decade.
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00dda585bebed1216c76c97d4bcaf6b3 | https://www.cnbc.com/2015/09/22/goldman-sachs-blankfein-has-highly-curable-form-of-lymphoma.html | Goldman Sachs' Blankfein has 'highly curable' form of lymphoma | Goldman Sachs' Blankfein has 'highly curable' form of lymphoma
VIDEO2:1602:16Lloyd Blankfein discloses Lymphoma diagnosisSquawk Box
Goldman Sachs Chairman and CEO Lloyd Blankfein said Tuesday he has been diagnosed with lymphoma.
"Late this summer after several weeks of not feeling well, I underwent a series of tests, which culminated in a biopsy last week," Blankfein said in a release. "Fortunately, my form of lymphoma is highly curable and my doctors' and my own expectation is that I will be cured."
Tweet
Blankfein, who is 61 years old, added that he will be able to "work substantially as normal, leading the firm" while undergoing treatment, but will "reduce some of my previously planned travel during the treatment period. I have discussed this approach with our Board of Directors and they are supportive."
Goldman Chief Operating Officer Gary Cohn will have enhanced responsibilities while Blankfein undergoes treatment, a source told CNBC.
Lloyd Blankfein, Chairman and CEO of Goldman Sachs.Adam Jeffery | CNBC
"This is coming at the wrong time for Goldman Sachs in the sense that, about a year ago, after doing a study which had taken a year, Goldman was asking itself 'What should we be doing in the next five years?' ... And they came up with this memorandum, which was given to the board and it has put a series of major changes," Rafferty Capital's Dick Bove told CNBC's "Squawk Box."
"Goldman Sachs is undergoing massive changes to its structure to set itself into what banking will look like 20 years from now, and obviously Lloyd Blankfein is a key person in executing that," Bove added.
According to the Leukemia and Lymphoma Society, there are over 760,000 people living with, or in remission from, lymphoma in the U.S.
The organization also notes that the five-year survival rate for people with Hodgkin Lymphoma has more than doubled "from 40 percent in whites from 1960-1963 (only data available) to 87.7 percent for all races in 2004-2010."
"I wish my friend Lloyd a fast and full recovery. He is blessed with a lot of love and support from family and friends, including me. My thoughts and prayers go out to him and his loved ones," JPMorgan Chase CEO Jamie Dimon, said in a statement.
Dimon was diagnosed with throat cancer on July 2014 and in December of that year, tests and scans showed that there was "no evidence of cancer" left in his body.
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d3885c155b9c1e74f70d68ccabd94c50 | https://www.cnbc.com/2015/09/22/goldman.html | Goldman: Apple to surge 40% on iPhone upgrades | Goldman: Apple to surge 40% on iPhone upgrades
Apple Inc. iPhone 6s Plus smartphones are displayed after a product announcement in San Francisco, California.David Paul Morris | Bloomberg | Getty Images
Goldman Sachs gave clients three reasons Tuesday morning why Apple shares may rally by more than 40 percent over the next 12 months.
A new analyst for the firm, Simona Jankowski, initiated coverage on the world's largest company by market value with a 'buy' rating, taking the reins from previous analyst Bill Shope. Jankowski built up a great track record with her coverage of other technology companies as her picks averaged a one-year return of 11.7 percent, according to TipRanks.com.
Her price target of $163 is also much higher than the Wall Street consensus of around $145, according to FactSet. It was trading at $113.20 on Tuesday morning.
Here are the three reasons:
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9b10704047a112b4625422c0da37216e | https://www.cnbc.com/2015/09/22/gopro-as-trade-to-go-after-ceo.html | VIDEO0:5800:58Top trades for the 2nd halfHalftime Report
GoPro, whose stock has been struggling, is working with tech titans on third-party apps, but acquisition discussions haven't been on the agenda.
During a CNBC exclusive interview on "Halftime Report", GoPro CEO Nick Woodman said his team has had lots of conversations with companies such as Apple and Google, but none have involved talk of a takeover.
Trader Pete Najarian said it may now be worth taking a look at GoPro, saying the stock could push higher.
GoPro shares have been slashed in half this year on concerns about its growth rate and encroaching competition.
A GoPro Hero 4 camera is displayed at the 2015 International CES at the Las Vegas Convention Center on January 6, 2015.Getty Images
Trader disclosure: On September 22, 2015 the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Halftime Report" were owned by the "Halftime Report" traders: Pete Najarian is long AAPL, AMAT, BAC, BMY, BP, CSX, DISCA, DKS, FOXA, GE, KKR, KO, LLY, MRK, PEP, PFE, he is long calls AA, AAL, BEE, BMY, DAL, MPEL, PFE, SWFT, UAL, XLF, XOM, ZIOP, he is long puts DISH, FCX. Stephanie Link is long AAPL, BAC, BRCM, CHKP, CRM, DAL, DLPH, EL, EXP, GILD, GOOG, GOOGL, HPQ, INTC, JPM, LLY, LOW, LPX, LULU, MAT, MCD, MS, PRU, RHT, SBUX, SLB, SWK, UNH, V, VFC, WFC. Josh Brown is long AAPL, BABA, DE, DNKN, EBAY, FB, JMBA, NFLX, PYPL, SAM, SHAK, SPWR, TWTR, XLE, XON. Joe Terranova is long VRTS.
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33293aeeafa66063a0d29f2ce203c05d | https://www.cnbc.com/2015/09/22/gops-huckabee-im-still-in-despite-walker-calls.html | GOP's Huckabee: I'm still in, despite Walker calls | GOP's Huckabee: I'm still in, despite Walker calls
VIDEO2:5202:52In this for the' long haul': Mike HuckabeeSquawk Box
Republican presidential candidate Mike Huckabee said Tuesday he's in the race "for the long haul," despite Scott Walker's call for other candidates to follow his lead and drop out.
Walker—unable to arrest his sliding poll numbers after the second GOP debate—ended his White House bid Monday evening. He called on other GOP hopefuls with lower poll numbers to do the same "so the voters can focus on a limited number of candidates who can offer a positive conservative alternative to the current front-runner," taking a shot at Donald Trump without mentioning him by name.
In the RealClear Politics polling aggregator, Trump still leads the crowded field by a wide margin with 28.5 percent support. Huckabee comes in seventh with 4.8 percent.
After Walker's announcement, Jeb Bush rejected the notion that he might leave the race. The former Florida governor has 7.8 percent support and is in third place, according to RealClear Politics.
Former Texas Gov. Rick Perry dropped out before last week's CNN debate.
VIDEO2:1602:16How my FairTax plan works: Mike HuckabeeSquawk Box
Huckabee told CNBC's "Squawk Box" on Tuesday that his campaign has been handicapped by the media giving candidates such as Trump much more coverage.
"For example ... during the period of August 24 to September 4, Donald Trump got 580 minutes of television time on CNN. I got six seconds, cumulatively in two weeks. I got next to the least amount of time. Governor Walker was the only one with less time," said Huckabee, a former governor of Arkansas. "You put that much helium in somebody's balloon and it's going to float."
"I bring a pretty substantial record to the stage, but nobody is going to hear about it. They're going to ask me some question about my religious beliefs," said Huckabee, a former Baptist minister.
He also defended his "fair tax" proposal to eliminate the federal tax code and replace it with a national sales tax expect on necessities.
"People at the bottom third of the economy end up being better off than anybody by about 14 percent," he said. "The middle third, they do about 7 percent or 8 percent better. And the top still do 4 percent or 5 percent better."
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d22e00caff898452ef4f3d790f9985cf | https://www.cnbc.com/2015/09/22/gundlach-longer-duration-bonds-would-benefit-from-december-hike.html | Gundlach: Longer-duration bonds would benefit from December hike | Gundlach: Longer-duration bonds would benefit from December hike
Jeffrey GundlachHeidi Gutman | CNBC
Investors should add longer-duration government bonds to their portfolio if they believe the Federal Reserve will begin its tightening cycle in December, Jeffrey Gundlach, chief executive of DoubleLine Capital, said on a webcast Monday.
Gundlach said he believes an interest rate increase in December would be a policy mistake, given slowing global growth, lack of inflationary pressures and selling pressure in risky high-yield "junk" bonds and emerging-market securities.
Gundlach, whose DoubleLine oversees $80 billion in assets, added that the U.S. economy and risk markets cannot digest a premature Fed hike. Raising rates too early would hurt high-yield "junk" bonds and help longer-duration government bonds such as U.S. Treasurys and government-guaranteed bonds such as mortgage-backed securities (MBS).
VIDEO1:1301:13Gundlach: Fed hike probably strengthens dollarHalftime Report
Gundlach said he would rather own cash than short-maturity bonds because short-term fixed-income securities yield almost nothing. If investors are willing to accept no yield, it would be better to hold cash and forgo the risk for virtually zero yield with short-term bonds, he said.
Gundlach said he was surprised about the dollar's strength after the Fed kept interest rates unchanged at near zero on Thursday, in a bow to worries about the global economy, financial market volatility and sluggish inflation at home.
He said he was "disappointed" that junk bonds have come under selling pressure after the U.S. central bank kept interest rates unchanged, adding "Perhaps investors are getting nervous because the price action is so bad."
Gundlach said it was Fed chair Janet Yellen's news conference that was "a little bit of a debacle." He said she injected confusion and uncertainty into financial markets and Fed policy makers "kind of no longer have a framework" to work with.
Many investors and economists have said the Fed's models have not done a great job of predicting economic developments, and understandably so given all the structural changes in the U.S. and abroad.
"If (policy makers) had raised rates on Thursday, traders and investors would be talking about the next one this week," Gundlach said after the webcast.
Overall, Gundlach said: "I'm not worried about bond market liquidity."
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3ccdf6df2a263fb64fc1ac4336019b13 | https://www.cnbc.com/2015/09/22/hank-paulson-china-economy-has-run-out-of-steam.html | Hank Paulson: China economy has 'run out of steam' | Hank Paulson: China economy has 'run out of steam'
VIDEO1:2501:25US-China must team up to defeat cyber threats: PaulsonClosing Bell
China and the United States need to collaborate to expedite reforms and combat slowing growth in the world's second-largest economy, former Treasury Secretary Hank Paulson said Tuesday.
"They have an economic model that has run out of steam. They need to place much more reliance on domestic-led growth, domestic consumption," he told CNBC from Seattle, where Chinese President Xi Jinping will meet with American business leaders Tuesday.
The Chinese government has recently received criticism for its handling of a sluggish economy and erratic stock markets, including moves to ease monetary policy and devalue its currency. Paulson contended that cooperation and investment between China and the U.S. will not only help to kick-start economic activity but also address growing concerns like cyberattacks launched from Chinese soil.
"The most troublesome economic issue is corporate and commercial cybertheft. I think it's the biggest risk when you look at U.S.-China relations. Ultimately, it's very important for our two countries to come together," Paulson said.
Hank PaulsonDavid Orrell | CNBC
Xi's tour of the U.S. this week—when he will meet with President Barack Obama and speak at the United Nations—comes as U.S. officials have reportedly considered economic sanctions over cyber-espionage. Some experts remain skeptical that the diplomatic trip will yield any significant progress.
Read MoreChina's Xi to visit US tech—amid tepid expectations
Paulson stressed that cooperation is crucial to China changing its economy. He said U.S. businesses currently hold concerns about the "pace of reform" and China opening its doors to more foreign firms.
He contended more competition is needed to spur China's transition from an export-driven economy to one focused on domestic consumers.
"The only way to have real competition that's going to benefit the Chinese economy is to open up to foreign competition so you have the best businesses and the most efficient businesses competing there," Paulson said. "That is the key. That is what the U.S. businesses will be pressing for."
Read MoreXi has chance to clarify China role on world stage
He believes Xi is "very serious" about economic reforms. However, Paulson noted that the process would likely "take a while" as reformers would need to overcome "strong vested interests" in pockets of the government.
—CNBC's Michelle Caruso-Cabrera contributed to this report.
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84761776033b76ff186bc77ac3ad8901 | https://www.cnbc.com/2015/09/22/hedge-fund-co-founder-backs-corbyns-peoples-qe.html | Hedge fund co-founder backs Corbyn’s ‘people’s QE’ | Hedge fund co-founder backs Corbyn’s ‘people’s QE’
Labour party leader Jeremy Corbyn addresses the TUC Conference at The Brighton Centre on September 15, 2015 in Brighton, England. It was Mr Corbyn's first major speech since becoming leader of the party at the weekend and he received a standing ovation from the members of the TUC.Mary Turner | Getty Images
Jeremy Corbyn has found an unlikely supporter for one of the leftwing Labour leader's main economic policies: from the senior ranks of Britain's hedge fund industry.
Paul Marshall, co-founder of the $22 billion hedge fund Marshall Wace, has applauded Mr Corbyn's idea of "people's quantitative easing" to fund infrastructure projects.
The idea has been criticised by many economists, the CBI and by some of Mr Corbyn's parliamentary colleagues. But Mr Marshall, a former Liberal Democrat donor, has revealed his support for the idea.
VIDEO5:5405:54UK Min: When it comes to IP, China is improvingSquawk Box Asia
In an opinion piece written for the Financial Times, he said that hedge fund managers like himself, as well as property owners and bankers, "owe a debt" to the quantitative easing, or QE, that has caused asset prices to surge in value since the financial crisis.
"It is no surprise that the Left are angry about this, and no surprise that they are reaching out for other versions of QE which do not so directly benefit bankers and the rich," said Mr Marshall, who has become one of the UK's wealthiest hedge fund managers through the growth of Marshall Wace, which he co-founded in 1997.
Mr Marshall argued that people's QE — advocated by Mr Corbyn and his shadow chancellor John McDonnell — could be a better alternative if used correctly.
"If Corbyn/McDonnell pared back the idea to something they would seek to implement next time the country was in financial crisis, it would carry quite a lot of respectability," he said.
More from the Financial Times:
Jeremy Corbyn's policies a recipe for defeat, says Matteo Renzi Regions face threat of job losses from 'living wage' Jeremy Corbyn's leadership might shake more than Britain
Mr Corbyn may not openly welcome the support, given the criticism he has directed at hedge funds.
In a speech last week he accused the Conservatives of being a party funded by the industry. "They seem quite relaxed about the involvement of hedge funds and funny money in politics, they seem absolutely obsessed with the cleanest money in politics, which is trade union funds being used for political campaigning," he told the TUC conference in Brighton.
But Mr Marshall's comments may help to counter the widespread criticism from various other quarters. Tony Yates, a former economist for the Bank of England, has warned the policy would be "the first step along the road to undermining the social usefulness of money".
John Cridland, director-general of the CBI business lobby group, has said that QE should only be used in emergencies. "What we've got now is an economy which is soundly based, a recovery which is long term," he said. "You can't print money and borrow endlessly. You have to have a soundly based economic recovery."
Read MoreJeremy Corbyn vows to oppose 'Brexit' and backs EU tax on City
Criticism within the Labour party was led by the last shadow chancellor, Chris Leslie, who said the policy "sounds so easy" but was fundamentally flawed. Mr Leslie said in an article in the New Statesman that governments could not "magically" abolish the deficit with printed money and expect no repercussions.
"Resorting to the printing press to artificially create money for public expenditure purposes would be a major distortion for the economy," he said. "Such a new monetarism would spark higher inflation and make it harder for those on lower incomes to afford goods and services, provoking a rise in mortgage rates to counteract the effect."
In the closing stages of his leadership campaign, Mr Corbyn played down the idea that he was wedded to people's QE, saying that it might be suitable only in particular circumstances.
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dbe0fb7d0d32526651ea231ba546ad7d | https://www.cnbc.com/2015/09/22/hillary-clinton-gets-emojified.html | Hillary Clinton gets emojified | Hillary Clinton gets emojified
Hillary Clinton Android emojis.Source: Android
Hillary Clinton is coming to a keyboard near you.
Mobile messaging marketing firm Snaps released Text With Hill, an emoji keyboard chock-full of cartoon images and GIFs of the Democratic presidential candidate. Supporters can send stickers asking their colleagues to "get your pantsuit on" or proclaim "I can't I'm busy breaking glass ceilings." Of course, there's the requisite image of Hillary chatting on a cellphone and changing into various colors of pantsuits.
"After going to Hillary's first few rallies, one of the things that jumped out at me was her need to reach the millennial demographic," said Snaps founder and Clinton supporter Vivian Rosenthal. "She skews female, but she doesn't skew young. Obama did a great job of using Facebook, but now the numbers show that younger demographics are spending the majority of time on messaging apps."
While Clinton's campaign did not commission or have any involvement in the creation of the Hillary-branded emojis, Rosenthal met with her digital team and offered her product as a pro-bono service.
The Clinton campaign declined to comment on the Snaps emojis. However, her team in the past has tried various social and digital media techniques to reach younger voters, and it got some negative backlash in August when it asked Twitter users to tweet about the college debt crisis using emojis.
When candidates try too hard on social media
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Microsoft is giving users the finger…literally
With more people seeking out ways to reach millennials on their mobile phones—whether that's to earn their vote or get them to buy their products—many companies are turning to mobile marketing services like Snaps to help make them hip with younger consumers using branded emojis. Snaps has previously done work with companies including Burger King, Sony Pictures, Victoria's Secret, L'Oreal and the Los Angeles Kings.
Another mobile messaging marketing company, YourMoji, lets brands sponsor emojis and GIFs. YourMoji lets its users create their own emojis with in-app editing software and customize their own keyboard from their favorite images. For example, a company could slap a logo on a looped clip of highlights from sports events or sponsor template emoji. Rather than having to download an entire keyboard each time,
"What we've done is look at the keyboard as a new channel, and we can pump any kind of media in there," said YourMoji co-founder Perry LaForge.
Public's love for ad blockers infuriating publishers
For one, these companies say that these mini-images can help get the word out a company or person better than any billboard or TV commercial thanks to their massive mobile reach. Snaps' work for Burger King—which included a Chicken Fries-themed emoji keyboard, as well as promoted content on Kik and Kanvas—resulted in 3.5 million branded conversations, with 925,000 consumers sharing branded content within friends.
But, perhaps more important is the fact that thanks to digital downloads, companies can get data on whether the messaging is working. Snaps commissioned a survey of Gen-Z and Millennials who downloaded the Burger King content. Fifty-five percent were more favorable to Chicken Fries, 39 percent were more likely to buy the product and 36 percent were more likely to recommend the food item to their friends.
Snaps' competitor Swyft Media co-founder Evan Wray said those insights are valuable for brands, who can then use the data to inform their other advertising campaigns. Wray points out that with ad blockers limiting digital advertising, branded emojis are a way to get in front on consumers or voters who want your companies messaging.
It's worked with Ford, MillerCoors, Bratz dolls and even Aleteia.org to create "popemojis" to get the youth excited about the papal visit. Brand partners are given data on total downloads, shares, how many times the content was viewed, how many hours people were engaged with the materials and more.
"We can create content in a way that spawns sharable content in our network, but we have a whole bunch of back-end technologies for our users to access," Wray explained. "We can provide impressions to download numbers to most popular content to social sentiment, a lot of really insightful analytics to complete that whole campaign."
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Snaps' Rosenthal hopes that the Text With Hillary keyboard will help spread the word about the candidate.
"It dawned on me that this was the right time to do something for the campaign that would help her be more relevant and fun to millennials in the messaging space," she said. "Hopefully we'll be able to get people involved, whether it's to start a conversation using Hillary emojis or get them to donate their money and time."
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81e2cb8c68e03a6952a85821ae31ce2d | https://www.cnbc.com/2015/09/22/hillary-clinton-i-oppose-keystone-xl-pipeline.html | Hillary Clinton: I oppose Keystone XL pipeline | Hillary Clinton: I oppose Keystone XL pipeline
VIDEO0:3000:30Hillary Clinton: I oppose Keystone XLPolitics
VIDEO7:1307:13Hillary Clinton outlines drug cost plan Pharmaceuticals
VIDEO7:2707:27Hillary Clinton: I want to end prescription profiteeringPharmaceuticals
After months of declining to take a position on the Keystone XL pipeline, Democratic presidential candidate Hillary Clinton says she opposes the construction of the project.
"I think it is imperative that we look at the Keystone XL pipeline as what I believe it is: A distraction from the important work we have to do to combat climate change, and, unfortunately from my perspective, one that interferes with our ability to move forward and deal with other issues," she said during a campaign event in Iowa Tuesday.
"Therefore, I oppose it. I oppose it because I don't think it's in the best interest of what we need to do to combat climate change."
File photo: Environmental activists protest against the proposed Keystone XL pipeline in Syracuse, NY in March of 2015Nicholas Kamm | AFP | Getty Images
Clinton had long cited her former job as secretary of state as a reason to delay weighing in on the deal until the administration formalized its opinion on the project. In July, she said she did not want to "prejudge" President Barack Obama and Secretary of State John Kerry on the result of an administration review of the pipeline's environmental impact.
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But last week, she promised that her decision would be coming "soon" and suggested that she has been growing impatient with the White House for delaying its final verdict on the matter.
"I have been waiting for the administration to make a decision," she said last week in Concord, NH. "I thought I owed them that. I worked in the administration. I started the process that is supposed to lead to a decision. I can't wait too much longer. and I am putting the white house on notice. I'm gunna tell you what I think soon because I can't wait. I thought they would have it decided way, you know, way by now and they haven't."
Clinton has been under fire from fellow Democratic presidential contenders for failing to weigh in on the matter sooner.
"It is hard for me to understand how one can be concerned about climate change but not vigorously oppose the Keystone pipeline," Bernie Sanders, one of Clinton's rivals and a vehement foe of the project, said.
Read MoreThis will be the next spark for a sell-off in oil
Environmental activists vehemently oppose the pipeline, which they say will be vulnerable to leaks, cause harmful effects on the environment and represent a step backward from attempts to address global climate change.
But others, including most Republicans and some pro-business Democrats, say the project would create jobs and carry minimal risk to the environment.
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b82b3ca39211e5b2b7d9382e23f14f68 | https://www.cnbc.com/2015/09/22/hk-the-future-is-fintech-tuspark-co-work-spaces-innovation.html | HK: The future is fintech, among other innovations | HK: The future is fintech, among other innovations
PHILIPPE LOPEZ | AFP | Getty Images
While the world's attention is focused on China as it moves from heavy manufacturing to a more service-based economy, Hong Kong is undertaking its own important shift in focus.
Where once it specialized in manufacturing goods to ship to the world, Hong Kong is now reinventing itself as a financial technology hub where innovation thrives.
Hong Kong's reputation as one of the globe's most-free economies and the relative ease with which companies can set up shop is key to the metamorphosis, experts say.
"Hong Kong is like New York [City] on steroids" in terms of the speed of doing business and the entrepreneurial spirit of its citizens, Janos Barberis, the Founder of FintechHK, an organisation that brings together start-ups, community and events that shape Hong Kong's innovation ecosystem.
One area ripe for disruption is financial services, observers say. Hong Kong is an important financial center, with 70 of the world's 100 largest banks present. This, coupled with robust intellectual property laws, makes a fertile environment for the emergence of financial technology, or fintech, companies.
Fintech has long been relied on by banks - automated teller machines (ATMs) were, after all, invented in the 1960s - but since 2007 a new wave of players have been heating up the market. They moved away from creating banking industry technology and instead took the form of e-commerce start-ups or internet finance companies, Barberis said, citing Alibaba as an example.
Accelerator programs such as Hong Kong hosts are vital as they create a bridge between the mainstream financial services sector and fintech start-ups. The collaboration not only introduces a new and interesting work culture for bank employees but also gives established players the opportunity to incubate innovative banking products and services.
As a result, there is little surprise that large banks are multiplying the opportunity to interact, collaborate and even acquire fintech, Barberis says.
And the clamor for fintech is not restricted to banks. The University of Hong Kong has introduced up to a dozen additional courses on financial technologies, anticipating increased interest from students for employment opportunities in fintech start-ups, rather than the long-popular investment banking and corporate law options.
Read MoreUK pushes to be 'China's best partner' despite fears
"The human capital and intellectual capital is here and this is key as both traditional banks and fintech companies look to recruit the next wave of talent," Barberis, who is also a fellow of the Asian Institute of International Financial Law, says.
VIDEO4:2104:21Why Hong Kong must be more competitiveStreet Signs Asia
The frenetic activity in the fintech space has bled into the commercial property sector, with the creation of a new kind of office space. There are now more than 40 co-work spaces where start-ups from around the globe and across numerous sectors congregate. This is according to Invest HK, a department of the Hong Kong Special Administrative Region Government that aims to attract foreign direct investment and support overseas and mainland businesses to set up in Hong Kong.
TusPark is the latest such space, and already the largest with more than 50,000 square feet of space. There is an entire floor dedicated to fintech that provides offices for companies entering and expanding out of the mainland market.
An Invest HK survey in October 2014 found that the 37 co-worker spaces and incubators operating in Hong Kong at that time were hosting 1,065 startups. This was an estimated 30 percent on-year increase. Of the 1,065 startups, 53 percent were homegrown innovators.
In another sign of rapid growth, in 2014 Invest HK helped 62 entrepreneurs to start their businesses in Hong Kong, compared to 52 in the first six months alone of this year.
The government is doing more than just backing Invest HK in order to boost innovation. Hong Kong's growth initiatives include the development of an intellectual property (IP) trading hub that offering IP consultation, manpower training and other services to local small and medium-sized entrepreneurs.
In addition, the Hong Kong government is formulating proposals for China's National 13th Five-Year Plan - the country's blueprint for development from 2016-2020 - in order to seize the opportunities brought about by China's growth to enhance its competitive advantages, says Dr. Simon Galpin, director-general of investment promotion at Invest HK.
Read MoreThis startup lets you hire a luxury suitcase in Hong Kong
In its most recent policy address, the Hong Kong Government laid out its commitment to nurturing the start-up ecosystem. Key measures include the injection of HK$5 billion ($645 million) into the country's Innovation and Technology Fund, as well as setting up an enterprise-support scheme to enhance funding support for private sector research and development projects, said Agnes Chan, Managing Partner of Ernst & Young (EY) in Hong Kong and Macau.
Meanwhile, the Hong Kong Science and Technology Park (HKSTPC) will extend its Leading Enterprise Acceleration Program to help companies with potential to consolidate their businesses, raise capital and improve their corporate management. HKSTPC will also earmark HK$50 million to set up a corporate venture fund for co-investment opportunities.
Other initiatives are being carried out to support start-up and creative industries, including the film, fashion designers and branding sectors, as well as art groups, EY says.
Chan told CNBC: "Over the past years, the Hong Kong Government has been adopting a more proactive stance towards promoting the development of such sectors as the creative industries and innovation. This can sustain the value added from these sectors and hence help diversify the growth potential of the local economy."
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a0a97cd50f5d5cc28557be1663080e6e | https://www.cnbc.com/2015/09/22/how-the-super-rich-are-investing-in-current-markets.html | How the super-rich are investing in current markets | How the super-rich are investing in current markets
VIDEO1:2201:22Wealthy blindsided by stock drop Market Outlook
Investors have been left rattled after one of the most volatile summers in financial markets in living memory, thanks to fears of China's slowdown and speculation surrounding the timing of the Federal Reserve's first interest rate hike in six years. These jitters have even spread to the part of the investment community that doesn't normally concentrate on day-to-day movements -- High Net Worth Individuals.
From the summer peak to August low, global equities fell by around 12 percent, mostly in the week leading up to the "Black Monday" mini-crash on 24 August.
Read MoreClassic cars outperform global stocks
Melpomenem | Getty Images
Many equity markets fell by 20 percent from their previous highs, putting them in official 'bear market' territory, with China leading the way. This month hasn't looked much better, with U.S. stocks seeing their worst start to September in 13 years and, even after the Fed held off on a rate rise, stocks still finished sharply lower last week.
High Net Worth investors, or individuals with at least $1 million in investable assets, tend to have less interest in the short term when it comes to putting their cash to work, but even they are feeling unnerved in the current volatile climate, analysts say.
CNBC takes a look at how the rich are coping.
Property has been a mainstay of high net worth investor portfolios for decades, as can be seen in the soaring prices in prime real estate in capitals around the globe. While data has showed that there has been some cooling in London property prices this year, real estate is still the wealthy investor's go-to safe haven.
Simon Smiles, global chief investment officer for the ultra-wealthy at UBS said three years ago, clients were mostly concerned with investing in U.S., real estate.
Now he is seeing more of a shift to Europe, but clients are still inquiring about real estate more than any other asset.
"Today it is not so much about the U.K., it is far more about continental Europe. Mid-sized clients are looking for deals in terms of offices and real estate. Our larger clients are looking for trophy assets, luxury hotels and hotel chains," Smiles, who deals with ultra-high net worth clients with investable assets of $30 million or more, told CNBC.
Top 1% of Harvard grads richer than America's 1%
Smiles said there had been a sharp increase in the number of clients calling in light of recent market volatility, but that investors were mostly seeing the sell off as a buying opportunity.
"Interestingly, the conversations are often turning to the tactical or where the opportunities are, so people looking to deploy more capital, rather than taking that capital off the table," he said.
In its annual global report into "family offices" – which serve to manage wealth of very affluent individuals or families -- Campden Wealth and UBS found that there was a significant "home bias" when it comes to property investing, with the groups preferring investments closer to their base.
Some 224 family offices were questioned for the report, published on Wednesday, with an average of $806 million assets under management.
Read MoreThe rich are saving cash at a record pace
The data revealed an "ongoing affinity" among family offices for residential property in particular, with 42 percent of their real estate direct investment in the form of residential property.
Hedge funds were also an increasingly popular choice amongst family office portfolios, with the asset class seeing the single largest growth in allocations so far this year.
"This class has been given added appeal by the low interest rate environment and lackluster returns in equity generally," the report found, with family offices now putting 9 percent of their portfolios in hedge funds, which is "significantly more than high net worths generally".
Shine on! $55 million Blue Moon diamond headed to auction
"In trying to preserve their real wealth, investors have to be vigilant on two fronts," said global investment strategist at Rothschild Wealth Management, which oversees 16 billion euros ($18 billion) in assets, with the average client worth around 5 million euros.
"Assets can be threatened from above, by falling markets; and, less visibly, from below, by inflation."
Gardiner suggests that for clients looking to hang on to their wealth long-term, equities are still the best solution and are a better bet than fixed income and traditional "hedges" such as gold.
"History is not infallible, but for the period for which we have credible data – effectively the last 90 to 100 years – long-term total returns from the big stock indices in the U.S. and U.K. have comfortably beaten inflation," Gardiner said in his monthly newsletter to clients
"For long-term investors, stocks' exposure to real growth gives them the edge in informally compensating for inflation – an attractive characteristic if it does eventually revive, and one of our reasons for favoring business ownership as a central plank in our strategy for preserving clients' real wealth over the long term," Gardiner added.
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1d3d51c810318b45f97020598075a882 | https://www.cnbc.com/2015/09/22/john-burbank-next-market-crisis-is-upon-us.html | John Burbank: Next market crisis is upon us | John Burbank: Next market crisis is upon us
John Burbank, Passport CapitalRick Wilking | Reuters
Hedge fund manager John Burbank, who successfully bet against subprime mortgages during the 2007 housing crisis, believes the extraordinary accommodative policy of the Federal Reserve and its forthcoming undoing will cause the next financial disaster, according to a new interview with Real Vision, an on-demand video platform for finance.
The founder of Passport Capital, which has more than $4.1 billion in assets, said in the interview:
Source: RealVisionTV.com
"This is the unwind of QE (quantitative easing), an era where it wasn't QE one and done it was two, Twist and three and I think there's no doubt there's going to be a four, but it's going to be a very painful path before we get to four.... Six months before they should have been hiking, they did QE3, which to me was an epic mistake along the lines with Greenspan cutting rates in October '98."
"This is the next one (crisis) ... I guess I'd say this is the fourth one in 20 years," Burbank added.
Burbank, who successfully bet against crude oil earlier this year, believes the rising U.S. dollar and a lack of market liquidity will be the catalysts for the coming selloff.
He said if the Fed does hike rates, it will only exaggerate the problem.
To be sure, not all is lost for long-term investors, according to the hedge fund manager. Biotechnology, technology and consumer stocks, which have disruptive secular trends backing them, will do well, he said.
Burbank's full interview from Real Vision can be viewed here.
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e09329a51633d21df342fcdd1c560c9a | https://www.cnbc.com/2015/09/22/look-out-below-where-stocks-could-bottom-paulsen.html | Look out below—where stocks could bottom: Paulsen | Look out below—where stocks could bottom: Paulsen
VIDEO3:1903:19More downside market risk ahead?
VIDEO2:5202:52US markets overreacted to China: Robert HormatsSquawk Box
VIDEO2:2402:24Fed was right on rates: Pro Squawk Box
Stocks appear vulnerable to test and maybe even break the lows seen toward the end of August, closely followed market watcher Jim Paulsen said Tuesday, as the Dow Jones industrial average plunged about 200 points on the open.
"I think at a minimum we go challenge the old lows we had set on the initial crash," the chief investment strategist at Wells Capital Management told CNBC, referring to Aug. 25 when the Dow sunk to 15,666 and the fell to 1,867.
"My best guess is we break those maybe and head down towards 1,800-ish [on the S&P] or that level before we finally scare everyone entirely, and maybe finally find a bottom in this correction," Paulsen said on "Squawk Box." The S&P at 1,800 would represent a nearly 8.5 percent drop from where the index closed Monday at 1,966.
"The things we're going to have to face going forward now that we're at full employment, and have interest-rate and maybe inflation pressures, I think we're going to need a lower valuation and a more cautious sentiment among investors," he continued. "I'm not sure we're there yet."
Read More Kovacevich: China isn't the world's growth engine
Reacting to the Federal Reserve's decision last Thursday not to hike interest rates for the first time in nine years, Paulsen said he wished the central bank made a move.
Based on the Fed's dual mandate of fostering employment and keeping inflation in check, he sees price pressures building and a solid job market. "I just don't get excess labor slack argument."
But bowing to reality, Paulsen said he thinks Fed policymakers are going to "wait until there's a panic exit, when they're forced to exit."
Read More Uncertainty rules, but bull market not over: Strategist
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6a0e666caf789120e416d2dee5ac2bae | https://www.cnbc.com/2015/09/22/oil-edges-up-on-falling-us-inventories-but-asia-concerns-to-drag.html | US oil settles down 4.1%, at $44.48 a barrel | US oil settles down 4.1%, at $44.48 a barrel
VIDEO0:4400:44Oil falls on mixed EIA reportPower Lunch
VIDEO1:5001:50What is happening with energy?Power Lunch
VIDEO0:3900:39French oil giant cutting spendingOil
Oil futures fell sharply on Wednesday after initially extending gains as government data showed a second consecutive weekly fall in U.S. crude oil inventories.
However, a build in gasoline inventories following the end of the U.S. summer driving season and falling refinery runs at the start of maintenance period offset the crude drawdown, John Kilduff, founding partner at Again Capital told CNBC.
U.S. light crude closed down $1.88, or 4.06 percent, at $44.48 a barrel. Benchmark Brent crude tumbled about 3 percent to $48.50 a barrel.
Gasoline demand was "the only thing keeping us alive there for the summer in terms of prices holding up," Kilduff said. "The downward press just keeps reemerging."
Read MoreHillary Clinton: I oppose Keystone XL pipeline
The Energy Information Administration reported U.S. commercial crude stockpiles fell by 1.9 million barrels in the last week, compared with analysts' expectations for an decrease of 533,000.
Refinery crude runs fell 310,000 barrels per day, EIA data showed. Refinery utilization rates fell 2.2 percentage points to 90.0 percent of capacity.
Gasoline stocks rose 1.4 million barrels, compared with analysts' expectations in a Reuters poll for a 819,000-barrel gain.
VIDEO2:0602:06Crude's slide about more than just inventories? Futures Now
Although total U.S. oil inventories are at record highs, the draw suggests a rebalancing of the biggest domestic oil market is under way as oil production slows in the face of low prices.
Read MoreIt could be a long time before it's safe to buy oil
The American Petroleum Institute (API) had earlier reported U.S. crude stockpiles fell 3.7 million barrels last week. That data had helped oil resist the negative impact of a sharp contraction in Chinese manufacturing.
Flagging demand is dragging China's factory sector into its sharpest contraction in 6½ years, a private survey showed on Wednesday, triggering a flight to safety in Asian markets that analysts say could extend across the globe.
The preliminary Caixin/Markit China Manufacturing Purchasing Managers' Index fell to 47.0 in September, its lowest since March 2009. Levels below 50 show a contraction.
Oil prices have been depressed for more than a year and are now trading at less than half their peak levels in 2014 thanks to massive oversupply by oil producers in the Middle East and North America.
Read MoreEd Morse: Don't expect $100 oil anytime soon
Many analysts say oil prices could be about to recover, but investors remain worried about China.
"China's economic slowdown continues, with factory output and investment growth both failing to hit targets," oil consultancy Energy Aspects said.
"With the economy showing little sign of recovery, the 7 percent GDP growth target set by the government may prove difficult to achieve," it added.
Energy Aspects said it expected global crude demand for the second half of the year to grow at only 1 million barrels per day (bpd), down from almost 2 million bpd in the first half.
—CNBC's Tom DiChristopher contributed to this story.
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100441e29fc323d575b6c725f10809b1 | https://www.cnbc.com/2015/09/22/one-year-after-ipo-more-pain-ahead-for-baba.html | One year after IPO, more pain ahead for BABA? | One year after IPO, more pain ahead for BABA?
Adam Jeffery | CNBC
A year after its stock became the largest initial public offering in history and then subsequently collapsed, Alibaba and its shareholders may be in for more turmoil.
The lockup expiration of ticker "BABA" freed approximately 1.6 billion shares worth more than $100 billion to be sold starting Monday, representing 63 percent of the stock issued by the Chinese e-commerce giant.
Lockup agreements bar early investors and officers of newly public companies from selling stock for a predetermined period in order to keep share prices stable.
Once those dates are reached, however, stockholders are free to sell.
Using data from Kensho, a tool designed to quantify historical market events, CNBC Pro ran a study to find the performance of other notable IPOs after a lockup expiration.
Here's the trade on BABA, if history is any guide.
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c71f73d112d776b1daa9dc720a05c373 | https://www.cnbc.com/2015/09/22/oriental-fruit-fly-outbreak-could-cost-florida-16b-report.html | Oriental fruit fly outbreak could cost Florida $1.6B: Report | Oriental fruit fly outbreak could cost Florida $1.6B: Report
Stephen Jenner, from the Florida Department of Agriculture and Consumer Services, sprays an insecticide under an avocado tree where some Oriental fruit flies were found on September 9, 2015 in Homestead, Florida.Getty Images
A recent Oriental fruit fly outbreak in South Florida could cost the state about $1.6 billion, The Miami Herald reported Tuesday.
The outbreak, which is affecting hundreds of farmers, could push the state into using aerial pesticide spray, Florida Commissioner of Agriculture Adam Putnam told growers, according to the report.
The fruit fly affects crops such as tomatoes, avocados and strawberries, and has left many growers angry at the state for not having already begin spraying.
Read MoreAgriculture: Job growth to boom over next 5 years
However, growers of organic produce expressed concern that their status could be negated if an airborne pesticide is used on their crops and could put them out of business for the next three years.
Nevertheless, the airborne spray the state is considering using as a last resort is GF-120, an insecticide approved for organic farming.
Click here to read the full report.
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944f0bd5811a49cdf6f1370d98ed7297 | https://www.cnbc.com/2015/09/22/pandora-co-founder-royalties-win-is-important-but.html | Pandora co-founder: Royalties win is important, but ... | Pandora co-founder: Royalties win is important, but ...
VIDEO3:4203:42Pandora not impacted by Apple Music: WestergrenSquawk Alley
Online music streaming company Pandora scored a big legal victory, but "this is only a blip on the radar," co-founder Tim Westergren said Tuesday.
"We're looking much further down the horizon," Westergren said on CNBC's "Squawk Alley."
On Monday, the U.S. Copyright Office said that a royalty payment rate agreement between Pandora and Merlin Network—a global rights agency for independent musicians—was a valid benchmark in determining what the legal rate should ultimately be for Internet radio play.
The Copyright Royalty Board, a three-judge panel working on setting a final rate royalties for Internet radio, is expected to make decide the issue in December.
Monday's announcement was considered favorable for Pandora—as the agreed to royalty rate of $0.0013 per stream could make the company profitable. The ruling sent Pandora's stock surging, rising as much as 14.7 percent before closing 5.74 percent higher at $20.83 per share. On Tuesday afternoon, its share price was down nearly 1 percent.
How Pandora thrives in music industry chaos
Westergren said he was not surprised by Monday's decision. "This panel of judges is looking to be very thoughtful and deliberate about it and I think we're all very confident that there'll be a rational outcome," he said.
He also discussed the impact Apple Music has had on Pandora's business, saying it has been "very little," thanks in large part to the amount of data the streaming company has received from users.
"We've gotten 60 billion-plus pieces of thumb feedback that have created this engine that is just uncannily good at selecting the right music for the right person," he said.
Apple Music launched on June 30.
—Reuters contributed to this report.
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