14 minutes ago
Stocks start flat on Monday
U.S. stocks were little changed at the start of trading on Monday.
The Dow Jones Industrial Average fell 5 points, or 0.01%.
The S&P 500 and Nasdaq Composite rose 0.07% and 0.28%, respectively.
— Ha-Kyung Kim
45 minutes ago
JPMorgan says these three key factors could indicate that earnings will decline going forward.
It's been a strong earnings season for companies so far, but JPMorgan thinks that fortune could turn around in the near future.
“As the year progresses, the earnings reality may reverse,” said strategist Mislav Matejka, identifying three key factors that suggest a company's profitability could deteriorate going forward. I mentioned it.
First of all, Matejka believes that companies have been able to benefit from lower net interest expense this cycle. Although this situation will lead to overperformance throughout the first half of this year, the strategists write that this “rather counterintuitive development is likely to normalize over time.”
Matejka also suggested that strong pricing power due to the coronavirus was driving the company's strong sales. However, he expects profits to decline in the future as the producer price index turns negative.
Finally, the analyst highlighted last year's strong U.S. economic activity, but noted that unit labor costs may recover this year.
“The corporate deflator minus ULC margin metric could be a further headwind,” he said. “The combination of the three above could result in disappointing earnings results, even if we don't see a full-on recession.Also, in key regions, he believes that his EPS forecast for 2024 remains We note that it is decreasing.”
— Lisa Kailai Han
1 hour ago
Stocks that make the biggest moves before the market
Check out some of the companies making headlines in pre-market trading.
- Domino's Pizza — Shares rose more than 6% after the restaurant chain announced it would raise its dividend by 25% and increase its stock repurchase program by an additional $1 billion. The dividend increase is scheduled to be paid on March 9, but additional share buybacks are authorized to begin on February 21, at the end of the fourth quarter.
- HashiCorp — The software company's stock jumped 8% after Morgan Stanley upgraded it from equal weight to overweight. The bank said HashiCorp should benefit from a resurgence in its cloud efforts.
- Berkshire Hathaway — Warren Buffett's conglomerate's Class B shares rose nearly 3% on the back of a nearly 30% increase in fourth-quarter operating profit from a year earlier. Berkshire's cash holdings have also swelled to record levels.
Read the full list here.
— Brian Evans
1 hour ago
Wilson's parent stock rises after a series of positive comments from analysts
The New York Stock Exchange welcomes executives and guests to celebrate the listing of Amer Sports, Inc. (NYSE: AS). To commemorate this, ANTA Sports CEO Jie Zheng and Chairman of the Board and Executive Director Shizhong Ding will ring the opening bell®.
new york stock exchange
Amer Sports' stock price soared more than 3% before the bell on Monday after several Wall Street analysts gave an optimistic outlook after its initial public offering.
Wilson and Arc'teryx's parent company went public on the New York Stock Exchange earlier this month. Several analysts have expressed bullish views on the stock in recent days.
“We view AS as an attractive portfolio of premium, innovation-driven brands with healthy growth opportunities,” Goldman Sachs analyst Brooke Roach said in a note to clients on Sunday. Stated. “The company has significant scope for profitable growth and profit expansion.”
CNBC Pro subscribers can read the full story here.
See chart…
Amer Sports, 1 day
2 hours ago
Amazon joins Dow Jones Industrial Average
In this illustrated photo, the Amazon logo is displayed on the smartphone.
Mateusz Srodkowski | Sopa Images | Light Rocket | Getty Images
2 hours ago
Berkshire Hathaway rises on strong operating profit
warren buffett
Adam Jeffrey | CNBC
Berkshire Hathaway's Class B shares rose more than 3% after Warren Buffett's conglomerate reported strong fourth-quarter results.
The company's operating income for the quarter rose 28% year over year to $8.481 billion, driven by strong gains in insurance. Berkshire also reported record cash holdings of $167.6 billion.
— Fred Imbert
9 hours ago
Xiaomi falls as EV stocks widen ahead of electric car exhibition in Barcelona
Chinese smartphone company Xiaomi announced its upcoming electric car, the SU7 sedan, on December 28, 2023.
CNBC | Evelyn Chen
Hong Kong-listed Xiaomi shares fell 1% in midday trading on Monday, following a sharp decline in the electric car maker's shares.
The Chinese smartphone company said it has identified a niche market of consumers who will pay for upcoming electric vehicles.
Prior to the car's international launch at Mobile World Congress in 2018, Weibin Lu, president of Xiaomi Group, said, “China already has 20 million smartphone-based premium users, so this is a premium model.'' “We think it's a good starting point for us in the segment,” he told CNBC. Barcelona starts on Monday.
“I think the initial purchase will overlap quite a bit with smartphone users,” Lu said.
Chinese EV maker Nio's stock price fell nearly 5%, while Xpeng's stock price fell nearly 1%. Hong Kong's Hang Seng Index was down 0.7% by midday trading.
— Shreyashi Sanyal, Evelyn Chen
9 hours ago
South Korea announces measures to counter “Korean discount”, stock market rises
South Korea's financial regulator on Monday announced steps to overhaul Japan's strategy and improve corporate governance to boost its undervalued stock market and combat the “Korean discount.”
The Financial Services Commission of Korea provided details of its “Corporate Value Enhancement Program,” which aims to prioritize shareholder interests through various incentives, including tax incentives.
South Korean authorities noted similarities with Japan's program, which saw the Tokyo market hit its highest level in 34 years.
The Financial Supervisory Board announced that it will also introduce a “Korea Value-Up Index'' for institutional investors such as pension funds.
— Shreyashi Sanyal
11 hours ago
Veteran investor David Roche would rather invest in India, Indonesia and Japan than China.
Veteran investor David Roche would rather invest in India, Indonesia and Japan than China.
Asked about the outlook for India and Indonesia, the president of Independent Strategy told CNBC's “Squawk Box Asia”: “They're definitely going to have more money than China at this point.” “By the way, I would still have more money in a place like Japan than I would have in China,” he added.
Roche said China has many “fundamentally cheap” companies, but major problems such as deflation still plague the economy. Still, Roche said the Chinese market could recover.
“If the market goes down like it did in China, the market will recover,” he said.
—Li Yingshan
12 hours ago
Negotiations to sever relations with China have gone too far, Asian Development Bank says
China remains an important trading partner for many countries around the world, and the common narrative of a superpower being cut off from the global economy goes too far, the Asian Development Bank says.
“China remains probably the largest trading partner for the majority of countries in the world,” Albert Park, ADB's chief economist, told CNBC. “I think the talk of China being cut off from the global economy is probably either very overdone or very partial in general.”
The economic powerhouse remains its largest trading partner with more than 120 countries, and remains its largest trading partner with Japan, South Korea, Taiwan and Vietnam, according to the Wilson Center, a US think tank.
Additionally, despite the worsening trade tensions between China and the US since 2018, China continues to play a major role in the global economy as the world's largest trading economy.
—Li Yingshan
15 hours ago
