• Breaking News

    Thursday, December 20, 2018

    Fed hikes rates by a quarter-point Investing

    Fed hikes rates by a quarter-point Investing


    Fed hikes rates by a quarter-point

    Posted: 19 Dec 2018 11:01 AM PST

    • The Federal Open Market Committee, which makes monetary policy for the Federal Reserve, finished its two-day meeting Wednesday.

    • Markets expected the central bank to approve a quarter-point interest rate increase.

    The Federal Open Market Committee, which makes monetary policy for the Federal Reserve, finished its two-day meeting Wednesday. Markets expected the central bank to approve a quarter-point interest rate increase. Currently, the Fed's benchmark interest rate is in a range of 2 percent to 2.25 percent.

    http://cnbc.com/id/105636773

    submitted by /u/pipsdontsqueak
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    “Markets and economic data frequently diverge; the stock market has predicted nine of the last five recessions, the old joke goes. But that is actually a pretty good record; the Fed hasn’t predicted any of them.”

    Posted: 19 Dec 2018 08:58 PM PST

    Is this actually true? Did the Fed fail to see the 2008 recession coming?

    https://www.wsj.com/articles/powells-bet-the-data-is-right-the-market-is-wrong-11545266973?mod=mhp

    submitted by /u/ryeander
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    $SPY just set a new 52 week low and has lost 13.5% since Red October.

    Posted: 19 Dec 2018 12:02 PM PST

    With the Fed hinting at two more hikes next year and a rate increase today, equities are starting to near their 52 weeks lows (and wiping all gains for the year).

    submitted by /u/bliss19
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    Popdog Esports Rollup Combines Ninja's Manager, Analytics, Brand Advisors

    Posted: 19 Dec 2018 11:20 PM PST

    Three prominent esports-related organizations, including the management team behind Fortnite streaming-video star Ninja, today announced Popdog, a merged digital-services company specializing in esports and game-focused online streaming, backed by $9 million in venture capital.

    Full article: https://www.forbes.com/sites/dbloom/2018/12/19/popdog-rollup-combines-esports-influencer-agency-ninjas-manager/

    submitted by /u/Visionswas
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    Facebook sued by DC AG over data security concerns

    Posted: 19 Dec 2018 09:21 AM PST

    https://www.washingtonpost.com/technology/2018/12/19/dc-attorney-general-sues-facebook-over-alleged-privacy-violations-cambridge-analytica-scandal/

    The attorney general for the District of Columbia filed a lawsuit on Wednesday against Facebook for allowing Cambridge Analytica, a political consultancy, to gain access to the names, "likes" and other personal data about tens of millions of the social site's users without their permission.

    The lawsuit filed by Karl Racine, confirmed Wednesday by two people familiar with the matter but not authorized to speak on record, marks the first major effort by regulators in the United States to penalize the tech giant for its entanglement with the firm. It could presage even tougher fines and other punishments still to come for Facebook as additional state and federal investigations continue.

    Looks like the rollercoaster ain't over yet.

    submitted by /u/foetusofexcellence
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    The Dow’s 300-Point Gain Evaporated Because the Fed’s Not Done Raising Rates. The Fed raised its benchmark rate by a quarter point, and signaled expectations for two more hikes to come in 2019.

    Posted: 19 Dec 2018 11:32 AM PST

    2:25 p.m. The Dow Jones Industrial Average has given back most of its gains after the U.S. Federal Reserve raised its benchmark interest rate by a quarter point but continued to point to more hikes in 2019.

    The Dow is up 81.39 points, or 0.3%, at 23,757.03, while the S&P 500 has edged up 0.2% to 2551.47, and the Nasdaq Composite is off 0.2% at 6,771.31. The 10-year Treasury yield sits at 2.80%, near its low of the day.

    https://www.barrons.com/articles/dow-gives-back-gains-as-fed-signals-more-hikes-to-come-51545246699

    submitted by /u/caliphornian
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    Source?

    Posted: 19 Dec 2018 09:55 PM PST

    Where do you guys read your news and what do you use to get up to date numbers?

    I'm new and use MarketWatch but I want to know what else is out there.

    submitted by /u/seventhandgreen
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    Coffee prices have been stuck below the cost of production for the longest stretch since the global financial crisis, leading some producers to abandon crops and some to migrate for new jobs.

    Posted: 19 Dec 2018 10:44 AM PST

    Even as gourmet-coffee consumption is on the rise, most producers get only a dollar per pound of beans. A 2017 study by Cornell University for Fair Trade USA placed the average cost of coffee production at $1.40 a pound. Coffee prices have been below that price for 20 straight months, the longest stretch since 2008, according to FactSet data.

    https://stockmarketnews.today/2018/12/19/coffee-prices-have-been-stuck-below-the-cost-of-production-for-the-longest-stretch-since-the-global-financial-crisis-leading-some-producers-to-abandon-crops-and-some-to-migrate-for-new-jobs/

    submitted by /u/AALERa
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    Favorite stock for 2019 and why?

    Posted: 19 Dec 2018 08:14 AM PST

    There has been alot of turmoil around the world right now and the market is very volatile, with Trump-China, Brexit and such. So I'm wondering, what is your stock right now for 2019 and why?

    submitted by /u/Systemtic
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    Market crash vs Recession

    Posted: 19 Dec 2018 05:35 PM PST

    Not sure if this is a dumb question but can we have a market crash in the Dow, nasdaq, and s&p without an actual recession in the USA?

    People saying economy is currently doing just fine but the markets are swinging lower everyday like a falling knife.

    submitted by /u/Aaronacorona
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    Equity Traders, do most of you have your CFA?

    Posted: 19 Dec 2018 03:57 PM PST

    I'm really interested in being an Equity Trader professionally, but I really don't want to do the CFA. I might do a Masters in Economics, and take some investment foundations certificates.

    submitted by /u/Magic_Watermellon
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    Short Term Vs Long Term Bonds - Which will out perform in the next few years

    Posted: 20 Dec 2018 03:25 AM PST

    I got some information that short term bonds are the way to go in a rising rate environment. Considering the fed may or may not raise rates next year (we'll see), how should you invest in short term, medium term vs long term bonds?

    I was going to put a certain amount of my portfolio into bonds. I just need to know what % should go into short term, medium term and long term bonds..

    Anyone that can help is greatly appreciated. Thanks!

    submitted by /u/fobreezee
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    SEC seeks input on earnings releases and quarterly reports

    Posted: 20 Dec 2018 03:05 AM PST

     The SEC issued a request for comment to consider changes to the nature, timing and frequency of earnings releases and quarterly reports in an effort to reduce the burden on public companies while maintaining investor protections. The SEC is asking whether companies should be allowed to use the information they voluntarily provide in earnings releases to satisfy the requirements of Form 10-Q. The SEC is also asking whether it should require semiannual reporting or allow companies to select the frequency of their interim reporting, based on their investors' needs. Comments are due by 90 days after publication in the Federal Register. 

    SEC request for comment

    submitted by /u/iguessimherenow
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    Question from a Beginner on options

    Posted: 19 Dec 2018 11:12 PM PST

    I'm looking at calls and the breakeven price is half of the current price of the stock. Do I just buy it then turn around an sell it? Can someone just breakdown what the numbers mean? I've watched like half a sdozen videos that say the same thing but don't answer my questions.

    submitted by /u/Bandit848
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    Help us with our investment

    Posted: 20 Dec 2018 01:49 AM PST

    Hey so i am a 19yo guy studying in college , pursuing bachelors in business administration. My dad recently invested in a small startup who buy phone accessories from one place and sell to other. They've promised a good interest for what've invested & the sale figures are good so far(its been a month since we invested). Now my dad wants to me to look after them & ensure that whatever money they're taking from us , they're using it on the trade only. He also wants to me to buy accessories from other parties so that i know what we are paying is appropriate & not hiked. I am kind of afraid of asking my dad about how i am going to do it. I'd really appreciate any help from you guys on how i can work upon this. My dad's major concern is if that they run with our money , i should know whom i have to take money from in future...

    submitted by /u/tushg99
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    Game while we all wait for Fed rate news - Name your best 5 zombie companies that will be exposed in the next 2 years

    Posted: 19 Dec 2018 09:49 AM PST

    I will go first....

    1. W Wayfair - Growing EPS is negative. Amazon affiliate has been growing since 94 good luck!
    2. GME - Gamestop - People don't buy games at game stores
    3. DDS - Dillards - Bye trading at 61.34 with a market cap of 1.63B
    4. GS - Goldman Nuts - In a scam right now. I'm sure there's more coming (they will be the new Leman)
    5. IBM - acquire RedHat. Market Cap of 108.88B IBM. Post 2019/20 I see this cap being more of a *kippah
    • A kippah is a small jewish cap. Its a bad joke saying the current cap will be much smaller.

    Rules:

    1. Can't be on my list

    2. Don't use companies already in the mud (Ford, GE, Blue Apron)

    Name 5 even shitter stocks?

    submitted by /u/DaDaDaonald
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    Hedge Fund God (Stan Druckenmiller) has conceded defeat to computers and algo trading...!

    Posted: 19 Dec 2018 06:12 AM PST

    Billionaire Stan Druckenmiller is glad he's no longer in the hedge fund business now that algorithmic and quantitative trading have taken over markets.

    "I made 30 percent a year for 30 years. Now, we aren't even in the same zip code, much less the same state," he quipped of his recent returns in an interview with Bloomberg Television.

    Druckenmiller, 65, explained that his investment process has always involved divining so-called market signals. But quantitative funds, which now account for $1 trillion in assets, have muted or even silenced those cues, making it a lot less clear what's behind price moves.

    https://www.bloomberg.com/news/articles/2018-12-18/druckenmiller-says-algos-are-robbing-markets-of-trade-signals?srnd=premium-asia

    submitted by /u/jingyan4
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    FedEx down over 10% today

    Posted: 19 Dec 2018 08:10 AM PST

    Shouldn't have update their logo color I guess.

    submitted by /u/DaDaDaonald
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    GE Is Reportedly Filing a Confidential IPO for Its Health Care Unit

    Posted: 19 Dec 2018 06:06 AM PST

    http://fortune.com/2018/12/19/ge-healthcare-ipo/

    A public listing of GE's health care unit would follow a similar move by Germany's Siemens, which sold shares in its Healthineers business in March. The shares are up 32% since the IPO, valuing Siemens Healthineers AG at about 37 billion euros ($42 billion).

    A newly public GE health care company would rank among the world's largest, Bloomberg Intelligence analyst Karen Ubelhart said in June. Based on the valuation of peer companies, the new entity could have an enterprise value, which includes debt, of $65 billion to $70 billion, Ubelhart said.

    With a spin, GE will retreat from one of its largest and most profitable markets. GE Healthcare, which earned $3.5 billion last year on sales of $19 billion, specializes in equipment such as MRI scanners and mobile diagnostic machines. The company also has a fast-growing life-sciences division, which accounts for about a quarter of GE Healthcare's sales.

    submitted by /u/COMPUTER1313
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    Is the Fed raising interest rates good or bad?

    Posted: 19 Dec 2018 08:25 AM PST

    So im still fairly new to investing and was hoping someone could help me understand this. When the fed raises interest rates what does that mean, and is that good or bad for investors?

    Just wann say thanks to everyone for there insight you all have been very helpful

    submitted by /u/soullessnija
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    Todays the day for Fed Meeting Bingo!

    Posted: 19 Dec 2018 06:11 AM PST

    Banks that underwrote debt are delaying selling them

    Posted: 19 Dec 2018 05:14 PM PST

    https://www.bloomberg.com/news/articles/2018-12-19/eaton-vance-lord-abbett-seen-shedding-risky-loans-amid-rout

    Investors have turned sour on the loans amid global economic jitters. The Federal Reserve on Wednesday hiked rates for the fourth time this year though it dialed back projections for interest rates and economic growth in 2019.

    That is making corporate loans, seen for much of the past year as an attractive shelter from rising rates, less attractive. "If the reason for people flocking into loans was to have floating-rate exposure, that rationale is less compelling now," Greg Zappin, a portfolio manager at Penn Mutual Asset Management LLC, said in a phone interview.

    The plunging debt prices are making it difficult for banks to offload loans they've underwritten but not yet sold to investors. Lenders including Wells Fargo & Co., Barclays Plc and Goldman Sachs Group Inc. have taken the rare step of holding on to the loans -- which are typically made to finance buyouts -- with the hope that they can resell them to investors later.

    The reversal in leveraged loan sentiment came quickly. The debt had gained around 4 percent this year through the end of September, making it one of the best performing parts of credit markets. Now gains are closer to 1.4 percent for the year. Prices for loans fell to 94.8 cents on the dollar on Wednesday, as lower stock and energy prices have sapped investor appetite for risk.

    Some high-profile loan deals have suffered: $2.9 billion of loans borrowed by Apollo-owned Rackspace Hosting are now quoted at about 89 cents on the dollar, declining steeply since late September. A $6.5 billion loan sold in September by Blackstone to buy a stake in Thomson Reuters Corp.'s financial terminal division is now quoted at 95.6 cents.

    It's all added up to a tough time for banks trying to sell risky loans used to fund buyouts ahead of the transactions closing. They're offloading the debt at steep discounts with sweeter terms and -- in some cases -- they have opted to hang onto the loans themselves as they wait for the market to improve.

    Similarly, Wells Fargo and Barclays had to hold on to a $415 million loan to help finance Blackstone Group LP's buyout of Ulterra Drilling Technologies and now plan to wait until January to offload the debt.

    These delayed transactions means the banks will have to bear the risk of the loan prices falling further, as well as costs associated with holding the debt on their balance sheet.

    In some cases, private equity owners are stepping in to help get deals done.

    As a lender group led by Credit Suisse Group AG struggled to find buyers for the riskiest portion of a buyout of roofing company Tecta America Corp., Canadian private equity firm Altas Partners agreed to pony up more equity rather than force the banks to sell the $100 million loan at a steep discount, people familiar with the matter said. The banks also took some pain by giving up a chunk of their fees in the process, one of the people said.

    TL;DR: Banks that underwrote debt are bagholding them in order to avoid recognizing a loss if they were to sell it to the market.

    submitted by /u/COMPUTER1313
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