ReportWire

Tag: article_normal

  • Weekend reads: What to expect now for home prices, stocks and bonds

    Weekend reads: What to expect now for home prices, stocks and bonds

    [ad_1]

    This week Freddie Mac said the average interest rate on a 30-year mortgage loan in the U.S. had climbed to 6.70% from 6.29% the week before and 6.02% two weeks ago. The average rate a year ago was 3.01%.

    Would-be sellers who have low-rate mortgage loans are reluctant if it means they need to take out a new loan to fund their next home. Would-be buyers are forced out of the market, as the monthly principal and interest payment for a new 30-year loan, based on Freddie Mac’s figures, has increased 53% from a year ago.

    Home-sale contracts are being canceled at a record pace in some areas.

    But these factors could lead to a buyer’s market in 2023 if prices plunge. Here are the areas economists expect to see the largest home price declines.

    The strong dollar and the stock market

    Khaled Desouki/Agence France-Presse/Getty Images

    The dollar has strengthened as the Federal Reserve has taken the lead among central banks in raising interest rates. This is reverberating across the world, making it more costly for countries to make interest payments on dollar-denominated debt and increasing the cost of any commodity traded in dollars.

    The rising dollar lowers prices on imported goods for Americans and can also lower their international travel costs. But Michael Wilson, Morgan Stanley’s chief equity strategist, warns that earnings for the S&P 500
    SPX,
    -1.51%
    would decline as a direct result of the strong dollar and called the current foreign-exchange backdrop an “untenable situation” for the stock market.

    On the other hand: Companies are trying to blame weak earnings on the strong U.S. dollar, but that’s a lame excuse

    This is what happens when bearish sentiment runs high

    Michael Brush interviews David Baron, co-manager of the Baron Focused Growth Fund
    BFGFX,
    -0.76%    ,
    who describes opportunities cropping up as institutional investors dump stocks. He also explains his winning long-term strategy, which has included a very long-term investment in Tesla Inc.
    TSLA,
    -1.10%    .

    A a positive sign for the stock market: These 12 stocks have seen strong insider buying

    Time to buy bonds?

    When interest rates rise, bond prices fall. But it also means that if you have money to put to work, bond yields have become much more attractive.

    Khuram Chaudhry, a European equity quantitative strategist at JPMorgan in London, makes the case for buying bonds now.

    What about preferred stocks?

    Getty Images/iStockphoto

    Preferred stocks feature stated dividend yields and prices that move the same way bond prices do. That means prices for many issues are now heavily discounted to face value and that current yields are much higher than they were at the end of 2021. Here’s an in-depth guide on how to research preferred stocks and make your own selections.

    Related: 22 dividend stocks screened for quality and safety

    The problem with macro market projections

    Stanley Druckenmiller predicted a “hard landing” in 2023 for the U.S. economy while speaking at CNBC’s Delivering Alpha Investor Summit on Sept. 28.


    Bloomberg

    Stanley Druckenmiller predicted a U.S. recession in 2023 as a result of monetary policy tightening by the Federal Reserve. That may not be much of a stretch, considering that the U.S. economy contracted during the first half of 2022, according to revised GDP figures from the Bureau of Economic Analysis.

    But investors should be careful — macro forecasts often turn out to be incorrect, Mark Hulbert warns.

    More on stocks: It’s the worst September for stocks since 2008. What that means for October.

    Recessions and your retirement plans

    Getty Images

    Alessandra Malito has advice on how retirees and people planning for retirement can prepare for tough economic times.

    Also: Reset your retirement calculator now for today’s bleaker stock markets and make sure you’re still on track

    Investors tremble and a central bank scrambles

    The Bank of England’s headquarters.


    Agence France-Presse/Getty Images

    After the new U.K. government of Prime Minister Liz Truss announced a massive tax cut along with a new spending program to help counter rising fuel costs and new borrowing, the pound hit a new low against the dollar on Sept. 26 as investors and money managers panicked and sold-off U.K. government bonds. Steve Goldstein explains how and why the Bank of England came tot the rescue.

    A closer look at reverse mortgages

    Getty Images/iStockphoto

    Beth Pinsker digs deeply to explain how to use a reverse mortgage as a financial planning tool.

    Poking a little fun at Elon Musk

    Getty Images

    After Tesla CEO Elon Musk said the upcoming Cybertruck would be sufficiently waterproof to “serve briefly as a boat,” the San Francisco Bay Ferry offered this advice to patrons.

    Want more from MarketWatch? Sign up for this and other newsletters, and get the latest news, personal finance and investing advice.

    [ad_2]

    Source link

  • Eurozone Inflation posts new record high of 10.0% in September

    Eurozone Inflation posts new record high of 10.0% in September

    [ad_1]

    Eurozone inflation hit a new record in September and is expected to rise further in the coming months amid higher energy prices, increasing the likelihood of a lengthier and deeper economic contraction at year-end.

    The consumer price index–a measure of what consumers pay for goods and services–increased 10.0% in September compared with the same month a year earlier after climbing 9.1% in August, according to preliminary data from Eurostat, the European Union’s statistics agency.

    The reading beats the 9.7% consensus forecast from economists polled by The Wall Street Journal.

    September’s rise in the inflation rate was driven by energy prices, with prices up 40.8% year-on-year in September after a 38.6% increase in August.

    There was also an acceleration of food, alcohol and tobacco prices, which rose 11.8% on year compared with a 10.6% rise in August, data from Eurostat showed.

    The core consumer price index–which excludes the more volatile categories of food and energy–rose 4.8% on year in September, up from 4.3% in August.

    Economists expect eurozone inflation to increase further in the coming months, remaining above double digits. Elevated inflation adds pressure on the European Central Bank, which raised key interest rates by 75 basis points in September and is expected to increase rates again by 75 basis points at its next meeting in October.

    Write to Maria Martinez at maria.martinez@wsj.com

    [ad_2]

    Source link

  • Russia opens border draft offices as exodus continues in response to military call-ups

    Russia opens border draft offices as exodus continues in response to military call-ups

    [ad_1]

    Russian authorities are opening more military enlistment offices near Russia’s borders in an apparent effort to intercept some of the Russian men of fighting age who are trying to flee the country by land to avoid being called up to fight in Ukraine.

    A new draft office opened at the Ozinki checkpoint in the Saratov region on Russia’s border with Kazakhstan, regional officials said Thursday. Another enlistment center was set to open at a crossing in the Astrakhan region, also on the border with Kazakhstan.

    Earlier this week, makeshift Russian draft offices were set up near the Verkhny Lars border crossing into Georgia in southern Russia and near the Torfyanka checkpoint on Russia’s border with Finland. Russian officials said they would hand call-up notices to all eligible men who were trying to leave the country.

    Over 194,000 Russian citizens have fled to neighboring Georgia, Kazakhstan and Finland — most often by car, bicycle or on foot — since Russian President Vladimir Putin last week announced a partial mobilization of reservists. In Russia, the vast majority of men under age 65 are registered as reservists.

    The Kremlin has said it plans to call-up some 300,000 people, but Russian media reported that the number could be as high as 1.2 million, a claim that Russian officials have denied.

    Background: Putin’s ‘all instruments’ remark perceived as nuclear threat as Russia mobilizes some 300,000 reservists

    Russia’s Defense Ministry has promised to only draft those who have combat or service experience, but according to multiple media reports and human rights advocates, men who don’t fit the criteria are also being rounded up.

    The official decree on mobilization, signed by Putin last week, is concise and vague, fueling fears of a broader draft.

    In an apparent effort to calm the population, Putin told Russia’s Security Council on Thursday that mistakes had been made in the mobilization. He said that Russian men mistakenly called up for service should be sent back home, and that only reservists with proper training and specialties should be summoned to serve.

    “It’s necessary to deal with each such case independently, but if there is a mistake, I repeat, it must be fixed. It’s necessary to bring back those who were drafted without proper reason,” Putin stressed.

    The mass exodus of Russian men — alone or with their families or friends — began Sept. 21, shortly after Putin’s address to the nation, and continued all this week. Airline tickets to destinations abroad have sold out days in advance, even at unprecedentedly high prices.

    Long lines of cars formed on roads leading to Russia’s borders. Russian authorities tried to stem the outflow by turning back some men at the borders, citing mobilization laws, or setting up draft offices at border checkpoints.

    The bus stations in Samara and Tolyatti, two large Russian cities in the Samara region, on Thursday halted service to Uralsk, a border city in Kazakhstan.

    See: Officials say 98,000 Russians enter Kazakhstan after military call-up

    Finland announced that it would ban Russian citizens with tourist visas from entering the country starting Friday. With the exception of Norway, which has only one border crossing with Russia, Finland has provided the last easily accessible land route to Europe for Russian holders of European Schengen-zone visas. The Nordic country has taken in tens of thousands of people fleeing the military call-up in recent days.

    [ad_2]

    Source link

  • Dow falls 500 points Friday as stocks book third straight quarterly loss, set new 2022 lows

    Dow falls 500 points Friday as stocks book third straight quarterly loss, set new 2022 lows

    [ad_1]

    U.S. stocks dropped sharply Friday, with major indexes posting their lowest finishes since 2020 and logging a third straight quarterly decline as investors grew more fearful that aggressive interest rate hikes by the Federal Reserve will drive the economy into a downturn in an attempt to quell inflation.

    What’s happening
    • The Dow Jones Industrial Average
      DJIA,
      -1.71%
      dropped 500.10 points, or 1.7%, to close at 28,725.51.

    • The S&P 500
      SPX,
      -1.51%
      dropped 54.85 points, or 1.5%, to end at 3,585.61.

    • The Nasdaq Composite
      COMP,
      -0.43%
      shed 161.88 points, of 1.5%, finishing at 10,575.61.

    The drop left the Dow and S&P 500 at their lowest since November 2020, while the Nasdaq posted its lowest close since July 29, 2020. The Dow dropped 8.8% in September, while the S&P 500 tumbled 9.3% and the Nasdaq lost 10.5%.

    For the quarter, the Dow dropped 6.7%, the S&P 500 declined 5.3% and the Nasdaq gave up 4.1%.

    What’s driving the market

    In keeping with the historical pattern, U.S. stocks suffered during the month of September as an assertive Federal Reserve helped push Treasury yields and the dollar higher, which in turn undermined equity valuations.

    See: It’s the worst September for stocks since 2008. What that means for October.

    Investors on Friday digested a reading from the personal consumption expenditure inflation index for August, which showed that core consumer prices climbed by 0.6% last month, more than Wall Street’s forecast of 0.5%. The core inflation measure excludes volatile food and energy prices.

    See: Cheaper gas holds down inflation, PCE shows, but the cost of everything else is still going up fast

    “That means the Fed will remain hell-bent on killing inflation. And the best way to do that is to increase rates, kill the housing market, and get rental costs down. The PCE doesn’t have housing and rents as a big component as the CPI does, so the fact that it is rising is a warning sign,” said Louis Navellier, founder of Navellier & Associates, in emailed comments.

    Read: Will October be another stock-market ‘bear killer’? Why investors need to tread carefully around seasonal trends.

    The reading largely confirmed similar data from the consumer-price index, another closely watched inflation barometer, which sent stocks lower earlier this month. Since that report was released just over two weeks ago, the S&P 500 has fallen more than 10%.

    Helping to underscore this point, data out of the eurozone showed inflation accelerated at a record pace last month.

    See: Eurozone Inflation posts new record high of 10% in September

    In other news, investors also heard from Fed Vice Chair Lael Brainard, who reiterated that the central bank would keep interest rates elevated to combat inflation, even if it harms the economy.

    See: Fed won’t pull back from rate hikes prematurely, Brainard says

    Since it will take time for high interest rates to bring inflation down, Brainard said the Fed is “committed to avoiding pulling back prematurely.”

    Investors were also keeping an eye on megacap tech stocks. Apple Inc. AAPL fell 3% on Friday after leading markets lower a day earlier following a downgrade by Bank of America.

    Need to know: Here’s why investors should start betting on Apple and the stock market now

    A final reading on the University of Michigan consumer-sentiment index for September showed consumers’ view of the economy improved somewhat during the month due to falling gas prices, even as their outlook remained broadly pessimistic.

    Investors are now facing “what may be one of the most important earning seasons in a very long time, with a major rally in the cards if earnings don’t disappoint, and if the bears are right, lead to a further leg down if earnings disappoint and 4th quarter estimates are cut,” Navellier said.

    See: U.S. consumers remain pessimistic about economy even as inflation fears wane

    Stocks in focus

    — Steve Goldstein and Barbara Kollmeyer contributed to this article

    [ad_2]

    Source link

  • Trevor Noah leaving ‘The Daily Show’ after 7 years

    Trevor Noah leaving ‘The Daily Show’ after 7 years

    [ad_1]

    Trevor Noah is leaving Comedy Central’s “The Daily Show” after seven years.

    The South African comedian made the announcement at the end of the taping of Thursday’s show, after thanking the audience for their support. “It’s been absolutely amazing. After seven years, my time is up,” he said. “But in the most beautiful way.”

    “Honestly, I’ve loved hosting the show. It’s been one of my greatest challenges. It’s been one of my greatest joys,” he added. ” I have loved trying to figure out how to make people laugh, even when the stories are particularly shitty on the worst days.”

    Noah took over hosting the satirical news show from Jon Stewart in 2015.

    He hosted the show from his apartment for more than a year due to the COVID-19 pandemic, before returning to the studio last year. During Noah’s tenure, “The Daily Show” shifted its focus, from snarky mocking of conservatives under Stewart to a more youth-focused, social-advocacy messages (though conservatives were still regularly mocked).

    Noah did not give a departure date, and said he will continue hosting the show for the “time being.”

    “We are grateful to Trevor for our amazing partnership over the past seven years,” Paramount Global’s
    PARA,
    -4.44%
    Comedy Central said in a statement Thursday night. “With no timetable for his departure, we’re working together on next steps. As we look ahead, we’re excited for the next chapter in the 25+ year history of The Daily Show as it continues to redefine culture through sharp and hilarious social commentary, helping audiences make sense of the world around them.”

    “The Daily Show” has been Emmy-nominated for “outstanding variety talk series” every year Noah has hosted, but has never won, losing to former “Daily Show” cast member John Oliver’s “Last Week Tonight” on HBO each year, though it did win an Emmy for “best short-form variety show” in 2018.

    Noah’s departure is the latest shakeup in the late-night TV scene. Warner Bros. Discovery’s
    WBD,
    -1.10%
    TBS recently canceled Samantha Bee’s “Full Frontal” after seven seasons. Showtime’s “Desus & Mero” recently split up, and James Corden has announced he’s leaving CBS’s “The Late Late Show” in 2023.

    Last week, Disney’s
    DIS,
    -1.96%
    ABC renewed “Jimmy Kimmel Live” for three more years.

    [ad_2]

    Source link

  • Nike stock drops 10% as execs predict cheaper clothing for at least the rest of the year

    Nike stock drops 10% as execs predict cheaper clothing for at least the rest of the year

    [ad_1]

    Shares of Nike Inc. plunged as much as 10% after hours Thursday, after the athletic-gear giant’s executives said price-cutting efforts to flush off-season clothing from warehouses in North America would dent gross margins for the rest of its fiscal year and warned of a big potential hit from the stronger dollar.

    Management also said they expected their rivals to keep cutting prices through at least the end of the calendar year, as they try to clear their own stockpiles. But the Nike executives said inventory levels in North America likely “peaked” in its first quarter, which ended on Aug. 31, and expected levels to even out — with newer, seasonally-aligned, in-demand product — in the months ahead as it prepares for the holiday rush.

    “We’re taking decisive action to clear excess inventory, focusing on specific pockets of seasonally late product, predominantly in apparel,” Chief Financial Officer Matthew Friend said on Nike’s earnings call.

    He added that he expected the moves to have a “transitory impact” on gross margins for the year.

    The lopsided inventory levels, which grew 44% during Nike’s third quarter, followed factory closures last year in Asia, where most of its footwear is made, that led to late product deliveries, Friend said.

    But those late deliveries are now getting mixed in with holiday-season deliveries that are set to arrive earlier than planned. The earlier arrivals, executives said, were a function of earlier ordering — due to the shipping delays that have characterized the past year —and then a sudden, more recent improvement in those shipping times.

    And as the U.S. dollar strengthens, Friend said he expected the full-year negative impact of foreign exchange on reported sales and earnings before interest and taxes to be $4 billion and $900 million, respectively.

    Still, executives said inventory management in China was “ahead of plan” as it recalibrates supply and navigates COVID-19 related restrictions there. And they said that consumer demand was still strong, despite rising prices. Friend and CEO John Donahoe both repeated that Nike remained customers’ “No. 1 cool” and “No. 1 favorite” brand.

    Donahoe said shoes like the Air Max Scorpion — which offered the “most air ever, in terms of pound per square inch” — reflected Nike’s commitment to innovation. The company’s Travis Scott and LeBron 20 sneakers also remained popular, executives said. The back-to-school season, and demand for its Jordan and Converse sneakers, were also solid.

    As for fiscal first-quarter financials, Nike reported net income of $1.5 billion, or 93 cents a share, compared with $1.9 billion, or $1.16 a share, in the year-earlier period. Sales came in at $12.7 billion, compared with $12.2 billion a year ago.

    Analysts polled by FactSet expected earnings of 92 cents a share on sales of $12.28 billion. Shares of Nike
    NKE,
    -3.41%
    were last down 9.3% after hours, but fell more than 10% at one point after the close.

    Prior to the report, analysts following Nike had zeroed in on the impact of the stronger U.S. dollar, the impact of China’s COVID lockdowns, as well as the effects from bigger discounts to sell shoes and other gear that sat around for too long due to backups in the company’s supply chain. The back-to-school season, and competition with the likes of Adidas AG
    ADDYY,
    -5.21%
    were also points of focus for Wall Street.

    Gross margins fell to 44.3% from 46.5% during the quarter. Nike executives said the decrease “was primarily driven by North America, which took measures to liquidate excess inventory through Nike Direct markdowns and wholesale marketplace actions.”

    Inventory for Nike stood at $9.7 billion, a 44% increase from the year-earlier period, due to what executives described as “ongoing supply-chain volatility, partially offset by strong consumer demand during the quarter.”

    Nike, in June, said it expected “higher promotional activity” in the first quarter, as it tries to sell seasonal items that arrived late, following the factory closures last year in Asia. However, for the full year ahead, management at that time said it was planning for “mid-single-digit price increases.”

    Executives also said then that they were planning to expand sales that go directly to consumers, via its own stores and online. The company over the years has been trying to rely less on retail chains like Foot Locker Inc.
    FL,
    -6.36%
    for sales.

    Shares of Nike have fallen 43% so far this year. By comparison, the S&P 500 index
    SPX,
    -2.11%
    is down around 24% over that time.

    [ad_2]

    Source link

  • S&P 500 books worst day in more than 2 weeks, stocks finish sharply Thursday

    S&P 500 books worst day in more than 2 weeks, stocks finish sharply Thursday

    [ad_1]

    U.S. stocks tumbled on Thursday to end sharply lower, with the S&P 500 posting its worst daily decline since mid-September. The Dow Jones Industrial Average
    DJIA,
    -1.54%
    shed about 1.5%, or roughly 457 points, ending near 29,226, after falling more than 600 points at the session’s low. The S&P 500 index
    SPX,
    -2.11%
    closed down 2.1%, marking its worst daily percentage decline since Sept. 13 when it tumbled 4.3%, according to FactSet data. The tech-heavy Nasdaq Composite Index
    COMP,
    -2.84%
    bore the brunt of the day’s selling among the three major equity benchmarks, declining 2.8%. Investors were reacting Thursday to a flurry of economic data that suggested no letup in the Federal Reserve’s plans to keep increasing rates to fight inflation. That included a weekly report on U.S. jobless benefit claims showed the number of Americans initially applying for unemployment benefits fell to 193,000 in the week ended September 24, the lowest level since April. Apple Inc
    AAPL,
    -4.91%
    shares also were in focus for a second trading day, booking a 4.9% decline and pulling down the Dow.

    [ad_2]

    Source link

  • Dow down over 600 points, Nasdaq tanks 3.6% with stocks near session lows in final hour of trade

    Dow down over 600 points, Nasdaq tanks 3.6% with stocks near session lows in final hour of trade

    [ad_1]

    Stocks were trading near session lows heading into the final hour of trading Thursday, after economic data reinforced expectations the Federal Reserve will continue aggressively tightening monetary policy. The Dow Jones Industrial Average
    DJIA,
    -1.54%
    was down 647 points or 2.2%, while the S&P 500
    SPX,
    -2.11%
    dropped 2.8% to 3,616. The Nasdaq Composite
    COMP,
    -2.84%
    tumbled 3.6% to 10,653.

    [ad_2]

    Source link

  • Dropping Aaron Judge’s 61st home-run ball might have cost this fan $250,000 or more

    Dropping Aaron Judge’s 61st home-run ball might have cost this fan $250,000 or more

    [ad_1]

    Talk about dropping the ball.

    New York Yankees star Aaron Judge hit his 61st home run of the season Wednesday night, tying the American League record — but leaving at least one person with good reason to frown, despite having just witnessed baseball history firsthand.

    A Toronto Blue Jays fan sitting in the left-field stands at Toronto’s Rogers Centre, where Judge blasted the home run that tied fellow Yankees slugger Roger Maris for the league single-season record, was almost ideally positioned — and even equipped — for this once-in-a-lifetime opportunity. Unfortunately, the ball glanced off his glove and landed in the Blue Jays bullpen below.

    And a potentially huge payoff slipped through his fingers.

    The fan was later revealed to be a 37-year-old Toronto restaurant owner, who reportedly gave his name as Frankie Lasagna to the Canadian Press. He said normally he “would never ever bring a glove other than this situation,” with his left-field seat a reasonably likely landing spot for a home run by the right-handed-hitting Judge and history on the line.

    In video footage, the fan appears visibly upset after missing the ball and his chance to be a bit player in baseball history. “The disbelief comes over you and just the shock and the amazement,” he said. “I was like, ‘Oh my God, I almost had it.’ “

    Don’t miss: Aaron Judge looks to break American League home-run record — and then get the Yankees to break the bank

    Opinion: Aaron Judge hits 61st homer, but can he save Major League Baseball from itself?

    David Kohler, CEO of California auction house SCP Auctions Inc., estimated the value of a ball hit for Judge’s home 61st home run could be between $200,000 and $250,000. And if this was Judge’s last home-run ball of the season, it could end up being valued at more than $1 million.

    See: Aaron Judge’s milestone home run balls could be worth millions

    “The Yankees are beloved,” Kohler said. “Aaron Judge is beloved. There’s no negativity here like the steroid era in the past.” (The only players to have hit more than 61 home runs in a season have been linked with performance-enhancing drugs and played for National League clubs.)

    The moment went viral on Twitter after the game.

    The historic ball landed in the Blue Jays bullpen and eventually made its way to Judge. The Yankees star didn’t keep it for long, however, as a video of Judge gifting the ball to his mother was posted on Twitter
    TWTR,
    -1.18%
    after the game.

    “It’s a moment that I’ll never forget. I’ll cherish it,” the Yankees right fielder said. “Having my mom here supporting me — she’s been here through it all. That’s for sure. The Little League days. Getting me ready for school. Taking me to my first couple of practices and games. Being there for my first professional game and being there when I debuted and now getting chance to be here. This is something special. We’re not done yet.”

    Judge tied the AL record held since 1961 by Maris, who also manned right field in the Bronx. Maris made $32,000 during that 1961 season with the Yankees, which would be worth around 10 times that today, according to Saving.org. Judge is considered undercompensated with his 2022 season salary of $19 million, according to contract data from Spotrac.

    What would the Toronto restaurateur have done with the ball? Some fans give record-breaking memorabilia to the athletes accomplishing the noteworthy feats, often in exchange for autographs and future game tickets.

    “I would have held on to it for as long as I could [to] negotiate,” the Torontonian said. “Maybe get Judge to try to come to the restaurant.”

    MarketWatch sports news:

    The Mets, owned by hedge-fund manager Steve Cohen, now have the highest payroll in baseball: $273.9 million

    How Roger Federer became one of the few athletes to earn $1 billion: ‘He’s a sports marketer’s dream’

    Brett Favre also sought welfare money for football facility, texts reveal

    Minor-league baseball players unionize, just 17 days after organizing began

    [ad_2]

    Source link

  • Want to buy Porsche stock in the U.S.? It’s complicated.

    Want to buy Porsche stock in the U.S.? It’s complicated.

    [ad_1]

    Porsche shares
    P911,

    have traded higher on Thursday after a well-received initial public offering in Germany’s biggest new issue in decades.

    If you’re a U.S.-based investor interested in purchasing shares of the German automobile maker, the bad news is that there’s no offering on the New York Stock Exchange or the Nasdaq.

    But U.S.-based brokerages do offer the ability for investors to buy stocks on foreign exchanges, such as the Frankfurt exchange, where Porsche shares trade. These trades are harder to place and typically carry extra fees.

    Charles Schwab, for example, doesn’t allow such trades online but does permit them through a broker. Fidelity doesn’t allow U.S. investors to buy foreign stocks on margin, bars short sales and limits order instructions.

    Also, there is an over-the-counter offer of Porsche Automobil Holding
    POAHY,
    -13.72%    .
    That investment vehicle now holds a 25% stake in Porsche, plus some 53% of Volkswagen
    VOW3,
    -6.85%

    VWAPY,
    -8.57%    .

    Also read: Here’s what to know about the Porsche IPO

    [ad_2]

    Source link

  • Mortgage rates march towards 7%, reaching highest level since 2007

    Mortgage rates march towards 7%, reaching highest level since 2007

    [ad_1]

    The numbers: Mortgage rates continue to march towards 7%, continuing to pressure potential homeowners looking to buy a home. 

    The 30-year fixed-rate mortgage averaged 6.7% as of Sept. 29, according to data released by Freddie Mac
    FMCC,
    +0.75%
    on Thursday. 

    Mortgage rates are up as the Federal Reserve pushed key interest rates up to deal with the worst inflation the country has seen in 40 years. 

    That’s up 41 basis points from the previous week — one basis point is equal to one hundredth of a percentage point, or 1% of 1%. 

    The rise in rates is bad news for prospective buyers, as it potentially adds hundreds of dollars to their mortgage payments.

    Mortgage rates are now at highs last seen since mid-2007. To put the latest rate in perspective: A year ago, the 30-year was at 3.01%.

    “Mortgage rates are now at highs last seen since mid-2007. To put the latest rate in perspective: A year ago, the 30-year was at 3.01%.”

    Bloomberg’s chief economist Michael McDonough said a $2,500 monthly mortgage payment — with 20% down — would have gotten a buyer a $758,000 home last year.

    This year? You’d get a lot less house — with $2,500 per month, you’d only be able to afford a $476,000 home, he wrote on Twitter
    TWTR,
    -1.12%    .

    The median price of an existing home in the U.S. was $389,500 in August, down from $403,800 the previous month, the National Association of Realtors said.

    The average rate on the 15-year mortgage also rose over the past week to 5.96%. The adjustable-rate mortgage averaged 5.3%, up from the prior week.

    “The uncertainty and volatility in financial markets is heavily impacting mortgage rates,” Sam Khater, chief economist at Freddie Mac, said in a statement.

    Khater added that Freddie Mac’s survey of lenders revealed a large dispersion in rates, so home buyers should shop around with lenders to find a good quote.

    Mortgage applications also fell in the latest week, as cautious buyers continue to pull back as rates march towards 7%. 

    The yield on the 10-year Treasury note
    TMUBMUSD10Y,
    3.784%
    rose slightly above 3.8% in morning trading on Thursday.

    Got thoughts on the housing market? Write to MarketWatch reporter Aarthi Swaminathan at aarthi@marketwatch.com

    [ad_2]

    Source link

  • Rite Aid stock slides 11% premarket after company posts bigger-than-expected Q2 loss

    Rite Aid stock slides 11% premarket after company posts bigger-than-expected Q2 loss

    [ad_1]

    Rite Aid Corp. stock
    RAD,
    +7.16%
    slid 11% in premarket trade Thursday, after the pharmacy retail chain posted a wider-than-expected loss for its fiscal second quarter as it booked goodwill impairment charges on its pharmacy services segment as well as charges for higher facility exit and store closures. The company had a net loss of $331.3 million, or $6.07 a share. for the quarter to Aug. 27, wider than the loss of $100.3 million, or $1.86 a share, posted in the year-earlier period. Adjusted per-share loss came to 63 cents, ahead of the loss of 50 cents forecast by FactSet analysts. Revenue fell to $5.901 billion from $6.113 billion a year ago, but was ahead of the $5.773 billion FactSet consensus. “As we look to the second half of the year, we expect continued pressure on consumer spending and supply chain challenges,” CEO Heyward Donigan said in a statement. “At the same time, we are ready to meet a high demand for immunizations, while driving continued strong performance at Elixir and further SG&A expense reductions.” The company is sticking with revenue guidance for fiscal 2023 of $23.6 billion to $24.0 billion, but is expecting a bigger loss — of $520.3 million to $477.3 million. Shares have fallen 52% in the year to date, while the S&P 500
    SPX,
    +1.97%
    has fallen 22%.

    [ad_2]

    Source link

  • H&M profit drops after Russia exit costs

    H&M profit drops after Russia exit costs

    [ad_1]

    Sweden’s Hennes & Mauritz AB said Thursday that net profit for its third quarter fell significantly after it booked a one-time cost related to the winding down of its Russian operations, and that it will start a cost and efficiency program.

    The company
    HM.B,
    -3.17%
    posted a net profit of 531 million Swedish kronor ($47.4 million) for the fiscal quarter ended Aug. 31, compared with SEK4.69 billion a year earlier. Analysts polled by FactSet had expected a net profit of SEK2.17 billion.

    Sales were SEK57.45 billion compared with SEK55.59 billion a year earlier. Analysts polled by FactSet had expected sales of SEK57.45 billion.

    The company said it has booked a one-time cost of SEK2.10 billion, related to the winding down of Russian operations, hitting the result for the quarter.

    The cost and efficiency program is expected to result in annual savings of around SEK2 billion.

    “The third quarter has largely been impacted by our decision to pause sales and then wind down the business in Russia. This has had a significant effect on our sales and profitability, which explains half of the decrease in profits compared with the third quarter last year,” Chief Executive Helena Helmersson said.

    Write to Kyle Morris at kyle.morris@dowjones.com

    [ad_2]

    Source link

  • Yankees slugger Aaron Judge hits 61st home run, tying Roger Maris’ AL record

    Yankees slugger Aaron Judge hits 61st home run, tying Roger Maris’ AL record

    [ad_1]

    TORONTO — Aaron Judge tied Roger Maris’ American League record of 61 home runs in a season, going deep for the New York Yankees against the Toronto Blue Jays on Wednesday night.

    The 30-year-old slugger drove a 94.5 mph belt-high sinker with a full-count from left-hander Tim Mayza over the left-field fence in the seventh inning at Rogers Centre, a 117 mph drive that landed 394 feet from the plate. The tiebreaking, two-run drive, which put the Yankees ahead 5-3, clanked off the front of the stands and dropped into Toronto’s bullpen.

    Judge’s mother and Roger Maris Jr. rose and huegged from front-row seats. He appeared to point toward them after rounding second base, them was congratulated by the entire Yankees team who gave him hugs after he crossed the plate

    Judge moved past the 60 home runs Babe Ruth hit in 1927, which had stood as the major league mark until Maris broke it in 1961. All three stars reached those huge numbers playing for the Yankees.

    Barry Bonds holds the big league record of 73 for the San Francisco Giants in 2001.

    Judge had gone seven games without a home run — his longest drought this season was nine in mid-August. This was the Yankees’ 155th game of the season, leaving them seven more in the regular season.

    The home run came in the fourth plate appearance of the night for Judge, ending a streak of 34 plate appearances without a home run.

    Judge is hitting .314 with 130 RBIs, also the top totals in the AL. He has a chance to become the first AL Triple Crown winner since Detroit’s Miguel Cabrera in 2012.

    Maris hit No. 61 for the Yankees on Oct. 1, 1961, against Boston Red Sox pitcher Tracy Stallard.

    Maris’ mark has been exceeded six times, but all have been tainted by the stench of steroids. Mark McGwire hit 70 home runs for the St. Louis Cardinals in 1998 and 65 the following year, and Bonds topped him. Sammy Sosa had 66, 65 and 63 during a four-season span starting in 1998.

    McGwire admitted using banned steroids, while Bonds and Sosa denied knowingly using performing-enhancing drugs. Major League Baseball started testing with penalties for PEDs in 2004, and some fans — perhaps many — until now have considered Maris the holder of the “clean” record.

    Among the tallest batters in major league history, the 6-foot-7 Judge burst on the scene on Aug. 13, 2016, homering off the railing above Yankee Stadium’s center-field sports bar and into the netting above Monument Park. He followed Tyler Austin to the plate and they become the first teammates to homer in their first major league at-bats in the same game.

    Judge hit 52 homers with 114 RBIs the following year and was a unanimous winner of the AL Rookie of the Year award. Injuries limited him during the following three seasons, and he rebounded to hit 39 homers with 98 RBIs in 2021.

    As he approached his last season before free agent eligibility, Judge on opening day turned down the Yankees’ offer of an eight-year contract worth from $230.5 million to $234.5 million. The proposal included an average of $30.5 million annually from 2023-29, with his salary this year to be either the $17 million offered by the team in arbitration or the $21 million requested by the player.

    An agreement was reached in June on a $19 million, one-year deal, and Judge heads into this offseason likely to get a contract from the Yankees or another team for $300 million or more, perhaps topping $400 million.

    Judge hit six homers in April, 12 in May and 11 in June. He earned his fourth All-Star selection and entered the break with 33 homers. He had 13 homers in July and dropped to nine in August, when injuries left him less protected in the batting order and pitchers walked him 25 times.

    He became just the fifth player to hold a share of the AL season record. Nap Lajoie hit 14 in the AL’s first season as a major league in 1901, and Philadelphia Athletics teammate Socks Seabold had 16 the next year, a mark that stood until Babe Ruth hit 29 in 1919. Ruth set the record four times in all, with 54 in 1920, 59 in 1921 and 60 in 1927, a mark that stood until Maris’ 61 in 1961.

    Maris was at 35 in July 1961 during the first season each team’s schedule increased from 154 games to 162, and baseball Commissioner Ford Frick ruled if anyone topped Ruth in more than 154 games “there would have to be some distinctive mark in the record books to show that Babe Ruth’s record was set under a 154-game schedule.”

    That “distinctive mark” became known as an “asterisk” and it remained until Sept. 4, 1991, when a committee on statistical accuracy chaired by Commissioner Fay Vincent voted unanimously to recognize Maris as the record holder.

    [ad_2]

    Source link

  • Volkswagen’s Porsche IPO prices at top of its range

    Volkswagen’s Porsche IPO prices at top of its range

    [ad_1]

    Volkswagen AG said late Wednesday that it priced Porsche AG’s initial public offering at the top of its range, setting the sports-car maker’s IPO on a course to be among the largest ever in Europe.

    VW
    VOW,
    +1.77%
    priced the IPO at EUR82.50 a share, or about $80, valuing Porsche
    P911,

    at more than $70 billion. In a nod to Porsche’s iconic 911 two-door car, first introduced in the mid-1960s, 911 million shares were made available.

    See also: Porsche IPO is set for Thursday. Here’s what to know.

    Porsche shares are expected to trade on the Frankfurt Stock Exchange on Thursday.

    VW is planning to distribute 49% of the proceeds in a special dividend, and set a December meeting to put the proposal to a shareholder vote.

    [ad_2]

    Source link

  • Stocks end with back-to-back losses after Dow’s 1,000-point skid on Friday

    Stocks end with back-to-back losses after Dow’s 1,000-point skid on Friday

    [ad_1]

    Stocks booked back-to-back losses on Monday, with the Dow adding to its 1,000-point skid Friday after Federal Reserve Chairman Jerome Powell vowed not to back down on fighting inflation until U.S. costs of living fall back to its 2% target range. The Dow Jones Industrial Average
    DJIA,
    +1.92%
    shed about 183 points, or 0.6%, to end near 32,099. The S&P 500 index
    SPX,
    +1.99%
    shed about 0.7%, while the Nasdaq Composite Index
    COMP,
    +2.02%
    saw the brunt of the day’s losses, ending down 1%, according to FactSet. The S&P 500 and Dow both briefly flipped positive earlier in Monday’s session, but failed to hold those gains as losses mounted heading into the closing bell. Investors still were digesting Powell’s short, but blunt speech at the annual Jackson Hole economic symposium, which was viewed as trigger of Friday’s sharp selloff in equities. The Fed’s more hawkish tone also sent the 10-year Treasury yield up by 7.5 basis points to 3.109% on Monday, the highest level since June 28, according to Dow Jones Market Data based on 3 p.m. Eastern yields.

    [ad_2]

    Source link

  • Dow skids 750 points, putting it on pace for worst daily drop since mid-June

    Dow skids 750 points, putting it on pace for worst daily drop since mid-June

    [ad_1]

    The stock-market selloff was intensifying Friday afternoon following Federal Reserve Chairman Jerome Powell’s terse speech at Jackson Hole vowing to fight inflation until the battle has been won by bringing the annual cost of living back down to the central banks’s 2% target. The Dow Jones Industrial Average
    DJIA,
    +1.88%
    was down 740 points, or 2.2%, near 32,549, at last check. That would mark its worst daily percentage decline since June 16, when it tumbled 2.4%, according to Dow Jones Market Data. The S&P 500
    SPX,
    +1.97%
    was off 2.6% and the Nasdaq Composite Index was bearing the brunt of the selloff, down 3.2%, according to FactSet. Fed Chair Powell said the Fed will keep working to bring inflation down, even if it means hurting jobs and economic growth and that the process “will also bring some pain to households and businesses.”

    [ad_2]

    Source link

  • Dow, S&P 500 and Nasdaq snap 3-session skid as stocks eke out gains

    Dow, S&P 500 and Nasdaq snap 3-session skid as stocks eke out gains

    [ad_1]

    U.S. stocks finished modestly higher Wednesday, with all three major stock benchmarks ending a 3-session skid, as investors picked up shares after a sharp market selloff earlier this week. The Dow Jones Industrial Average
    DJIA,
    -2.01%
    rose about 61 points, or 0.2%, ending near 32,970, while the S&P 500 index
    SPX,
    -2.51%
    closed up 0.3% and the Nasdaq Composite Index
    COMP,
    -3.21%
    advanced 0.4%. Stocks booked modest gains as investors remained focused on the Federal Reserve’s inflation fight and Fed Chairman Jerome Powell’s speech at the Jackson Hole, Wyo. symposium on Friday. Recession worries also were in focus, with pending homes sales falling in July, a sign that rate hikes have been helping cool demand, even through shelter costs, specifically rents, have contributed to high U.S. inflation. Benchmark lending climbed Wednesday, with the 10-year Treasury rate
    TMUBMUSD10Y,
    3.802%
    climbing to 3.105% Wednesday, the highest since June 28, according to Dow Jones Market Data based on 3 p.m. Eastern levels. The S&P 500’s energy sector helped lead the way higher, up 1.2%, while financial rose 0.5%, according to FactSet

    [ad_2]

    Source link

  • Redfin, Zillow stocks drop after inflation data fuels jump in Treasury yields

    Redfin, Zillow stocks drop after inflation data fuels jump in Treasury yields

    [ad_1]

    Shares of real estate services companies were knocked lower Wednesday after surprisingly strong inflation data sent Treasury yields climbing. A big jump in longer-term Treasury yields this year has weighed heavily on the housing market, as they reduce affordability by boosting mortgage lending rates. Shares of Redfin Corp.
    RDFN,
    -5.86%
    slumped 4.6%, Zillow Group Inc.
    Z,
    -1.85%
    ZG,
    -1.91%
    dropped 4.0%, Anywhere Real Estate Inc.
    HOUS,
    -6.29%
    shed 2.9% and RE/MAX Holdings Inc.
    RMAX,
    -1.92%
    lost 2.3%. Meanwhile, the yield on the 10-year Treasury note
    TMUBMUSD10Y,
    3.787%
    rose 7.6 basis points (0.076 percentage points) to 3.034%. Meanwhile, the S&P 500
    SPX,
    -2.11%
    fell 1.0%.

    [ad_2]

    Source link

  • First Guaranty Mortgage files for bankruptcy

    First Guaranty Mortgage files for bankruptcy

    [ad_1]

    First Guaranty Mortgage Corp. said Thursday that it has filed for Chapter 11 bankruptcy protection, due to “significant operating losses and cash flow challenges” resulting from adverse market conditions for the mortgage lending industry. The mortgage company said its bankruptcy has not impact on closed mortgages, as they are already serviced by third parties, and said it has retained “a portion of its workforce” to manage the day-to-day business. “The sharp and unexpected decline in performance reflects the intense pressure on mortgage originations due to the dramatic collapse of the mortgage refinance market and the weakening mortgage purchase market, which has suffered from a lack of housing inventory and increasing affordability issues,” the company said. FGMC said it will try to accommodate the maximum number of borrowers who have started buy not yet completed the loan process.

    [ad_2]

    Source link