Passport to Wall Street http://www.pws.io/ pl-PL Copyright 2019, Passport to Wall Street 60 What to do when a stock you own moves against you? http://www.pws.io/what-to-do-when-a-stock-you-own-moves-against-you <p class='black-text'>What do you do when a stock you own or just bought starts to move against you? What do you do if you start to see your profits erase themselves and what do you do when your losing position becomes a bigger loser?</p><iframe width="100%" height="400" src="https://www.youtube.com/embed/LDCXNzJ0Uyo" frameborder="0" allowfullscreen></iframe> http://www.pws.io/what-to-do-when-a-stock-you-own-moves-against-you Thu, 17 Jan 2019 10:13:46 -0500 Dustin Tibbitts Bank Earnings Give Markets a Boost http://www.pws.io/bank-earnings-give-markets-a-boost <p class='black-text'>The markets closed higher yet again thanks to the earnings reports from big banks. The Dow 30 closed higher by 141, the S&P 500 added 5, and the Nasdaq 100 closed higher on the day by 10.</p><p class='black-text'>Tomorrow's focus will be on more earnings from banks including Morgan Stanley <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MS"><span style="color:#333">(</span><span style=";">MS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and credit card company American Express <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AXP"><span style="color:#333">(</span><span style=";">AXP</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AXP" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AXP" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AXP" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>. Netflix <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/NFLX"><span style="color:#333">(</span><span style=";">NFLX</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="NFLX" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="NFLX" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="NFLX" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> will be the major headline after the close tomorrow with their earnings announcement as well. Traders know that the fourth quarter earnings release is the most volatile and averages a 12% pop to the upside, but with the stock already higher by 50% and overbought, anything seems possible.</p><p class='black-text'>Sector News</p><p class='black-text'>Banks were one of the leading sectors today thanks to earnings from a handful of banks that were mostly better than expected. Over the last 21 days, the banks have rallied over 15% off their lows. Today technical traders noted the spike above the 50-day moving average for the first time in over a month.</p><p class='black-text'>Consumer staples were a notably weak area of the markets today, nearly erasing all they gained yesterday. While the sector is higher by almost 7% from its lows, today's reversal could signal a pause from the bulls.</p><p class='black-text'>Stock News</p><p class='black-text'>Goldman Sachs <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/GS"><span style="color:#333">(</span><span style=";">GS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="GS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="GS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="GS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were higher today as the company reported a nice beat on earnings ($6.04 vs. $4.45) and revenue for the fourth quarter. Revenue came in higher by 12% year-over-year. The company also announced they would raise their reserves for litigation in the 1MDB scandal. Currently GS trades at a 7 P/E, the third cheapest in all financials from an earnings standpoint.</p><p class='black-text'>Bank of America <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/BAC"><span style="color:#333">(</span><span style=";">BAC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="BAC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="BAC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="BAC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were also higher on the day as the company announced earnings that beat forecasts by 7 cents ($0.70 vs $0.63) on stronger revenues. Profit came in almost three times last year's, which further helped fuel share prices. BAC is currently trading at an 11.55 P/E, which is mid range for big banks, but still cheaper than WFC using that metric.</p><p class='black-text'>United Airlines <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/UAL"><span style="color:#333">(</span><span style=";">UAL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="UAL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="UAL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="UAL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares got a boost following their earnings announcement yesterday, which showed the company beat on earnings by 39 cents ($2.41 vs $2.02) thanks to stronger revenues. The company also announced guidance which was in line with expectations. They also shared that their expansion domestically has helped increase their overall customer count.</p> http://www.pws.io/bank-earnings-give-markets-a-boost Wed, 16 Jan 2019 18:19:09 -0500 Dustin Tibbitts US Government Shutdown Affects Economic Growth http://www.pws.io/us-government-shutdown-affects-economic-growth <p class='black-text'>The border wall spending bill standoff has lasted nearly a month, and it's beginning to take a toll on the US economy. The US has officially lost almost <a href="https://www.vox.com/policy-and-politics/2019/1/14/18179000/trump-wall-economic-cost-shutdown-jerome-powell">$3.6 billion</a> that could've been channeled towards transfer payments or overall economic growth.</p><p class='black-text'>Investment in public goods and infrastructure has slowed. Key economic reports and data that Wall Street uses as a gauge of the country's financial health have been delayed. <a href="https://www.wsj.com/articles/shutdown-pinches-economic-growth-11547423636">Small business owners</a> all over the country on the daily are feeling the impact, as entrepreneurs are unable to process loans due to a shortage of federal manpower. Roughly 800,000 federal employees aren't receiving wages.</p><p class='black-text'>Economic output forecasts have fallen by 0.9% from the<a href="https://www.wsj.com/articles/shutdown-pinches-economic-growth-11547423636"> 3.1% growth rate recorded in 2018, to 2.2%.</a> As the shutdown drags on past its 26th day on Wednesday, January 16, these estimates are likely to fall even further.</p><p class='black-text'>Ian Shepherdson of Pantheon Macroeconomics said in a research <a href="https://www.washingtonpost.com/news/powerpost/paloma/the-finance-202/2019/01/14/the-finance-202-government-shutdown-threatens-to-take-real-bite-out-of-economic-growth/5c3bee671b326b66fc5a1c36/?utm_term=.13de14b6ad87">note</a> over the weekend: "Even a one-month shutdown would seriously hit growth, to say nothing of the misery caused," he wrote. The effects will be even worse if the shutdown continues through the quarter: "We would look for an outright decline in first quarter GDP."</p><p class='black-text'><a href="https://www.vox.com/policy-and-politics/2019/1/14/18179000/trump-wall-economic-cost-shutdown-jerome-powell">Contractors working with the government haven't been paid yet.</a> These 4 million contract employees and the furloughed federal employees may eventually put a dent in the national level disposable income. If this persists, the economy will not be able to correct itself appropriately and both aggregate demand and supply will decrease. If supply decreases to a larger extent than demand, this could invoke cost-push inflation which would exacerbate the economy's woes.</p><p class='black-text'>Wall Street and white-collar jobs are also feeling the pinch. An understaffed SEC has slowed the antitrust review and IPO filing process. They're no longer assessing <a href="https://www.washingtonpost.com/news/powerpost/paloma/the-finance-202/2019/01/14/the-finance-202-government-shutdown-threatens-to-take-real-bite-out-of-economic-growth/5c3bee671b326b66fc5a1c36/?utm_term=.13de14b6ad87">proxy and registration statements</a>, and the agency isn't available to offer guidance to companies making regulatory filings.</p><p class='black-text'>"At the aggregate level, the economy generally does not reflect much damage from a shutdown," <a href="https://www.washingtonpost.com/news/powerpost/paloma/the-finance-202/2019/01/14/the-finance-202-government-shutdown-threatens-to-take-real-bite-out-of-economic-growth/5c3bee671b326b66fc5a1c36/?utm_term=.13de14b6ad87">said</a> Fed Reserve Chair Jerome Powell last week. However, he stated that a persisting shutdown would have tangible consequences and impact the economy, causing a ripple affect to be felt throughout the year: "A longer shutdown is something we haven't had. If we have an extended shutdown, then I do think that would show up in the data pretty clearly.</p> http://www.pws.io/us-government-shutdown-affects-economic-growth Wed, 16 Jan 2019 06:22:20 -0500 Tamanna Chhibbar ETF's continue to push off lows. http://www.pws.io/etfs-continue-to-push-off-lows <p class='black-text'>The markets have shown some strength this week as earnings season officially gets under way. The banking stocks <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/XLF"><span style="color:#333">(</span><span style=";">XLF</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="XLF" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="XLF" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="XLF" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> have seen the most action in terms of trading as a handful of the larger banking stocks have reported or will report earnings this week The XLF has been positive to start the week and has continued it's march back to the 50 day moving average.</p><p class='black-text'>Healthcare stocks <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/XLV"><span style="color:#333">(</span><span style=";">XLV</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="XLV" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="XLV" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="XLV" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> have also benefited from the start of earnings season as United Healthcare was once again able to show a beat on earnings which fueled a Tuesday rally. This helped push the XLV back above the 200 day moving average where it has had some struggles in the last few trading sessions.</p><p class='black-text'>The Nasdaq 100 <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/QQQ"><span style="color:#333">(</span><span style=";">QQQ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="QQQ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="QQQ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="QQQ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> inched back above it's 50 day moving average after posting almost a 2% gain on the day. Netflix <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/NFLX"><span style="color:#333">(</span><span style=";">NFLX</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="NFLX" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="NFLX" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="NFLX" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> reporting that they would be raising prices helped support the tech based index and all the FANG stocks.</p><p class='black-text'>Communication services <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/XLC"><span style="color:#333">(</span><span style=";">XLC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="XLC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="XLC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="XLC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> has now been above it's 50 day moving average for the last 6 sessions and has traded in the positive so far this week. The XLC was the first sector in the S&P 500 to get back above it's 50 day moving average and hasn't looked back since.</p><p class='black-text'>Reits <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/ICF"><span style="color:#333">(</span><span style=";">ICF</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="ICF" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="ICF" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="ICF" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> have fought off the battle of the 200 day moving average this week and now face the resistance of the 50 day after already being higher by 7% in just the last 12 days. Technical traders are anticipating a pause here given the short term, overbought position of the ICF.</p><p class='black-text'>Transports <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/IYT"><span style="color:#333">(</span><span style=";">IYT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="IYT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="IYT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="IYT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> are one of the lagging areas of the markets lately and so far this week remains basically unchanged. The IYT currently sits just under 4% from the 50 day moving average.</p> http://www.pws.io/etfs-continue-to-push-off-lows Wed, 16 Jan 2019 05:39:26 -0500 Dustin Tibbitts Earnings Reports and Tech Give Markets a Boost http://www.pws.io/earnings-reports-and-tech-give-markets-a-boost <p class='black-text'>The markets were higher today thanks to tech stocks, as well as strength in oil and the banking stocks The Dow 30 closed higher by 151, the S&P 500 added 27, and the Nasdaq 100 closed up on the day with a 1.7% gain, or 117 points.</p><p class='black-text'>Sector News</p><p class='black-text'>Oil was one of the major movers today as prices shifted back into the 50-day moving average. Lack of data from the commitment of traders report due to the government shutdown has caused a touch more volatility intraday. Oil remains stuck right at technical resistance for the week thus far.</p><p class='black-text'>Healthcare got a lift today thanks to a strong earnings report from UnitedHealth Group <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/UNH"><span style="color:#333">(</span><span style=";">UNH</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="UNH" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="UNH" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="UNH" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>. The positive report helped push healthcare stocks just above their 200-day moving average, where they've struggled for the last five trading sessions.</p><p class='black-text'>Stock News</p><p class='black-text'>JPMorgan <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/JPM"><span style="color:#333">(</span><span style=";">JPM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="JPM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="JPM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="JPM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> was the latest bank to report earnings, which came in below Wall Street's expectations. Revenue came in right in line with expectations. Weakness in investment banking and wealth management were some of the driving factors. Shares were slightly lower on the day.</p><p class='black-text'>Wells Fargo <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/WFC"><span style="color:#333">(</span><span style=";">WFC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="WFC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="WFC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="WFC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were lower on the day as the company reported earnings and revenue that failed to impress investors. Revenues from loans came in lower as consumers went elsewhere for their credit. Sales practices continue to haunt the banking giant and shares have moved towards the lower end of their week-long range.</p><p class='black-text'>Delta Airlines <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DAL"><span style="color:#333">(</span><span style=";">DAL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DAL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DAL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DAL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares moved lower today as well despite the company reporting earnings and revenue that were basically in line with Wall Street's expectations. Investors responded to their guidance revisions which they said would be lower. Delta expects the first quarter to be slower with some of the blame going to the shutdown.</p> http://www.pws.io/earnings-reports-and-tech-give-markets-a-boost Tue, 15 Jan 2019 16:54:06 -0500 Dustin Tibbitts Huawei Executive Charged With Espionage in Poland http://www.pws.io/huawei-executive-charged-with-espionage-in-poland <p class='black-text'>A sales director at Huawei (SHE: 002502) known as <a href="https://www.wsj.com/articles/huawei-terminates-employment-of-executive-detained-in-poland-11547298630">Wang Weijing</a> has been charged with espionage in Poland and officially arrested.</p><p class='black-text'>Huawei issued a <a href="https://www.wsj.com/articles/huawei-terminates-employment-of-executive-detained-in-poland-11547298630">statement</a> saying Wang's employment was officially terminated and that he behaved of his own accord, having "no relation to the company." Huawei also <a href="https://www.wsj.com/articles/huawei-terminates-employment-of-executive-detained-in-poland-11547298630">said</a> Mr. Wang "has brought Huawei into disrepute." Polish authorities believe that China is using Huawei as a front to spy on multiple countries.</p><p class='black-text'>This is the second time recently that Huawei is coming into the spotlight for the questionable actions of its employees. Its CFO, Meng Wanzhou, was arrested in Canada in <a href="https://www.wsj.com/articles/chinese-huawei-executive-is-charged-with-espionage-in-poland-11547201100">December</a>, pending extradition to the US for violating sanctions in Iran.</p><p class='black-text'>"Huawei complies with all applicable laws and regulations in the countries where it operates, and we require every employee to abide by the laws and regulations in the countries where they are based," <a href="https://www.cnn.com/2019/01/11/tech/poland-huawei-exec-arrest/index.html">said</a> a statement issued by the company. Huawei founder and CEO Ren Zhengfei has denied that his company spies on other countries at the behest of the Chinese government.</p><p class='black-text'>According to tech market analyst firm <a href="https://www.wsj.com/articles/huawei-terminates-employment-of-executive-detained-in-poland-11547298630">Canalys</a>: "Poland is a key European market for Huawei, which serves all four of the country's major network operators and is the second-largest vendor of smartphones, with more than a quarter of the market."</p><p class='black-text'>Wang was also tasked with being a cultural bridge between China and Poland, leading a training program in 2014 that prepared tour guides on how to deal with Chinese tourists. Wang also worked at the Chinese consulate in Gdansk, Poland, and was in <a href="https://www.wsj.com/articles/chinese-huawei-executive-is-charged-with-espionage-in-poland-11547201100">public relations for a while. </a>He joined Huawei in 2011.</p><p class='black-text'>The arrest is particularly notable because Poland is such a major market for Huawei, serving four of Poland's biggest phone operators while capturing more than a quarter of the market. It is the <a href="https://www.wsj.com/articles/huawei-terminates-employment-of-executive-detained-in-poland-11547298630">second-largest vendor of smartphones there. </a></p><p class='black-text'>Because Wang was such a well-known figure in the context of Huawei in Poland, the arrest requires some serious PR damage control on the part of the company. It also brings attention to the growing involvement of the Chinese government in extra-national matters through corporate channels.</p> http://www.pws.io/huawei-executive-charged-with-espionage-in-poland Tue, 15 Jan 2019 07:36:43 -0500 Tamanna Chhibbar Samsung Faces Obstacles in Pharma Industry http://www.pws.io/samsung-faces-obstacles-in-pharma-industry <p class='black-text'>South Korea-based Samsung <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SSNLF"><span style="color:#333">(</span><span style=";">SSNLF</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SSNLF" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SSNLF" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SSNLF" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> first made its foray into the US pharma market as Samsung Bioepis in 2017, planning to create high-quality medicines through the development of biosimilars, or medicines that mimic the function of their original natural counterpart.</p><p class='black-text'>The entry into the biopharmaceutical market hasn't been without its hurdles. Samsung is currently facing competition from pharma behemoths in the US who already have well-established links with medical institutions, <a href="https://www.wsj.com/articles/samsung-faces-resistance-from-big-pharma-in-the-u-s-11547206203">insurers, and healthcare-providers</a>. These companies are using these ties to undercut the company through establishing exclusive contracts with them before Samsung can. They're also offering rebates that Samsung currently cannot because it doesn't have the same scale.</p><p class='black-text'>Samsung Bioepis debuted on the US market in 2017 with a rheumatoid-arthritis drug called <a href="https://www.wsj.com/articles/samsung-faces-resistance-from-big-pharma-in-the-u-s-11547206203">Remicade</a>, a cheaper alternative to other drugs. Recently, it also partnered with 3SBio in China to expand its presence in mainland China.</p><p class='black-text'>"Samsung Bioepis possesses leading biologic development and manufacturing capabilities in the global market, combined with 3SBio's advantageous integrated platform in China, the 2 parties can provide patients in China with safe and affordable biological therapies," Jing Lou, PhD, chairman and chief executive officer of 3SBio, said in a <a href="https://www.centerforbiosimilars.com/news/eye-on-pharma-samsung-bioepis-to-partner-with-3sbio-on-biosimilars">statement</a>. "3SBio looks forward to accelerating the clinical development of SB8 in China, and to broaden 3Bio's product portfolio in the oncology area."</p><p class='black-text'>However, Samsung is unable to accumulate such clout in the US: "It's been a much longer journey than we expected," <a href="https://www.wsj.com/articles/samsung-faces-resistance-from-big-pharma-in-the-u-s-11547206203">said</a> Christopher Ko.</p><p class='black-text'>Aside from cutthroat competition, Samsung has thus far been unable to convince doctors of the quality of their pharmaceuticals, with many medical practitioners skeptical of the <a href="https://www.wsj.com/articles/samsung-faces-resistance-from-big-pharma-in-the-u-s-11547206203">cheaper alternatives.</a> This, coupled with the fact that Samsung Bioepis is privately held, has made the level of transparency between the company and potential consumers very low. Even <a href="https://www.wsj.com/articles/samsung-faces-resistance-from-big-pharma-in-the-u-s-11547206203">revenue is not reported.</a> The most pressing obstacle that lies between Samsung Bioepis and success in the US pharmaceutical market is that biosimilars face nationwide skepticism for being knock-offs that aren't identical to trusted sources and therefore are considered to be untrustworthy. This stems from US harboring culture of lawsuits and high health standards, which explains the discrepancy between the company's success in the Chinese market relative to the American market.</p><p class='black-text'>"We haven't given health-care payers any reason to spend a lot of time thinking about biosimilars yet, though as the number of products goes up, I think those payers will get more interested," Mr. Ko <a href="https://www.wsj.com/articles/samsung-faces-resistance-from-big-pharma-in-the-u-s-11547206203">said</a>.</p><p class='black-text'>The company is also facing a criminal investigation and potential delisting in South Korea after allegations of accounting fraud that occurred in 2015 ahead of its 2016 IPO.</p> http://www.pws.io/samsung-faces-obstacles-in-pharma-industry Tue, 15 Jan 2019 07:29:55 -0500 Tamanna Chhibbar The Final Stages: Sears Auction Proceeds on Monday http://www.pws.io/the-final-stages-sears-auction-proceeds-on-monday <p class='black-text'>The Sears <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SHLDQ"><span style="color:#333">(</span><span style=";">SHLDQ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SHLDQ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SHLDQ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SHLDQ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> saga continues as Chairman Edward Lampert's hedge fund ESL investments revamped its offer to buy the retailer, bringing up the amount to <a href="https://lmtribune.com/business/sears-fate-is-on-the-line/article_37d194f7-cc96-5f37-ab67-42cce5f577d8.html">$5 billion.</a> Though the auction will be held on Monday, January 14, 2019, results may not be revealed in Bankruptcy Court until Wednesday. From that point, other retailers will have an opportunity to challenge the outcome. Whatever the eventual result, all matters will need to be approved by a bankruptcy judge.</p><p class='black-text'>If ESL investments manages to out-bid other interested parties, it will protect the <a href="https://lmtribune.com/business/sears-fate-is-on-the-line/article_37d194f7-cc96-5f37-ab67-42cce5f577d8.html">50,000 </a>Sears employees and provide a reprieve from the complete liquidation process to keep the business running. Lampert offered the revised bid last Wednesday after his original offer came under fire from investors concerned that it wouldn't cover all the company's debts.</p><p class='black-text'>"This is a large company...that affects a lot of people," US Bankruptcy Judge Robert Drain <a href="https://www.reuters.com/article/us-sears-bankruptcy-liquidation-exclusiv/on-brink-of-demise-sears-to-reconsider-billionaire-chairmans-bid-idUSKCN1P218J">said</a> during a hearing last Tuesday. He said Lampert's revised bid was a "good development" that may allow Sears to "survive as a going concern, at least in part." Let it be noted however that if Lampert's offer isn't approved at auction, he'll lose more than <a href="https://www.reuters.com/article/us-sears-bankruptcy-liquidation-exclusiv/on-brink-of-demise-sears-to-reconsider-billionaire-chairmans-bid-idUSKCN1P218J">$17 million to Sears creditors from his own deposit.</a></p><p class='black-text'>Another potential roadblock is Lampert's proposal to forgive a <a href="https://www.reuters.com/article/us-sears-bankruptcy-liquidation-exclusiv/on-brink-of-demise-sears-to-reconsider-billionaire-chairmans-bid-idUSKCN1P218J">$1.3 billion</a> of debt that ESL Investments currently holds from Sears in exchange for control of the company after auction. This "credit bid" has come under attack from creditors as being illegitimate and unconventional.</p><p class='black-text'>ESL was also accused of engaging in deals that generated conflicts of interest, shedding further doubt on Lampert's credit legitimacy. To combat criticism, ESL issued a <a href="https://www.chicagotribune.com/business/ct-biz-sears-debt-hearing-lampert-20190108-story.html">statement</a> referring to previous transactions that were validated and fair, and showed "the firm's consistent support for Sears in its efforts to return to profitability amid disruption in the retail industry."</p><p class='black-text'>"Any allegation that ESL received 'sweetheart' deals is plainly wrongheaded and intended to inflame opinion against ESL," the hedge fund <a href="https://www.chicagotribune.com/business/ct-biz-sears-debt-hearing-lampert-20190108-story.html">stated</a> in court.</p><p class='black-text'>However, given how deep-rooted Sears' problems are, there's no guarantee that Lampert winning the bid will necessarily revive the company over the long-term. In fact, it may still be "<a href="https://www.chicagotribune.com/business/ct-biz-sears-debt-hearing-lampert-20190108-story.html">an unjustified and foolhardy gamble with other people's money</a>."</p><p class='black-text'>Alternatively, even if Sears is liquidated, there are parts of it that ESL could buy individually and retain. Some potential subsets that can be retained include the <a href="https://lmtribune.com/business/sears-fate-is-on-the-line/article_37d194f7-cc96-5f37-ab67-42cce5f577d8.html">Sears Home Services business or brands like Kenmore and DieHard.</a></p> http://www.pws.io/the-final-stages-sears-auction-proceeds-on-monday Mon, 14 Jan 2019 18:19:16 -0500 Tamanna Chhibbar Government Shutdown Impacting IPO Markets http://www.pws.io/government-shutdown-impacting-ipo-markets <p class='black-text'>The IPO markets have been quiet and look as though they'll remain that way for now. The recent downturn in the broad market has turned attention away from new IPOs, but the primary cause for delayed filings is the ongoing government shutdown. There's been very little in the way of IPO excitement last week and this week is looking the same for the moment.</p><p class='black-text'>The biotech space has seen new filings in keeping with their pace of last year. Also, Chinese listings continue to pour in as well. It's likely that Chinese listings and biotechs will dominate the first few months of 2019 IPOs.</p><p class='black-text'>A few notable names to mention that have filed include Acamar Holdings <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/ACAMU"><span style="color:#333">(</span><span style=";">ACAMU</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="ACAMU" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="ACAMU" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="ACAMU" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, which is a blank check company focused on acquisitions in retail, fashion, and other consumer goods categories. This is the largest filing recently, coming in at $300 million.</p><p class='black-text'>In the biotech space, there have been a few filings. Alector <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/ALEC"><span style="color:#333">(</span><span style=";">ALEC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="ALEC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="ALEC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="ALEC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> is the largest and most notable offering, coming in at $150 million. They're currently in phase 1 for their unique Alzheimer's medication. Their filing shows that they're well-capitalized, with nearly $300 million in cash. IPO analysts show that they may be aiming for a valuation that pushes into the $1 billion mark.</p><p class='black-text'>Lastly, in the Chinese tech space, there's been HeZhong International <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/HZ"><span style="color:#333">(</span><span style=";">HZ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="HZ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="HZ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="HZ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, an offering led by ViewTrade. The company provides a peer-to-peer lending platform exclusively to the Chinese and shows $34 million in revenue in less than a year in operation. They filed to raise up to $6 million.</p> http://www.pws.io/government-shutdown-impacting-ipo-markets Mon, 14 Jan 2019 17:57:44 -0500 Dustin Tibbitts Markets Recover Slightly From December Declines, but Impacts Linger On http://www.pws.io/was-a-pretty-sharp-decline <p class='black-text'>There's an interesting stat about the markets this week that emphasizes just how strong the most recent decline was. For the last 16 trading days, not a single S&P 500 stock hit a new 52-week high. Typically, there will be media reports daily on stocks that make new 52-week highs as a form of celebration, an indication of a stock's value, and a signal of future performance expectations. For the last 16 days, there's been silence on this matter, which leads us to wonder if there's a deeper significance to the recent stock market rout.</p><p class='black-text'>If you go back to 1990, you'll find that the second longest stretch of days where no stock in the S&P 500 hit new 52-week highs was 14 days. This week, we broke that record. So what does that mean?</p><p class='black-text'>First, it's a testament to the breadth and aggressiveness of the pullback that occurred from October through December. It also means that this pullback was widespread, which is sort of unique. Why would nearly every stock in the S&P 500 sell off? Some blame it on the index ETFs, which have become popular with the retail, DIY-investor. As they sold more and more, the Index funds followed suit to compensate. Given that the most popular Index ETF is S&P-focused, it's easy to see how this happened.</p><p class='black-text'>If markets weaken and investor concerns grow, there's always somewhere to put money. When investors get nervous about one area of the market, they tend to get excited about another. Out of all the sectors in the market, there's usually at least one oasis that shows promise. In this most recent case, there were no areas that offered that.</p><p class='black-text'>Just looking at one stat doesn't give you the sole or definitive reason for the market tumble, but it does demonstrate that the recent sell-off was no run-of-the-mill occurrence.</p> http://www.pws.io/was-a-pretty-sharp-decline Mon, 14 Jan 2019 17:57:23 -0500 Dustin Tibbitts Stock Market Pauses at Technical Resistance Area http://www.pws.io/stock-market-pauses-at-technical-resistance-area <p class='black-text'>The markets were lower today, with many technical traders noting a technical resistance area on the broad-based indices, as well as the individual sectors. The Dow 30 closed lower on the day by 86, the S&P 500 sold off 13, and the Nasdaq 100 closed down 65.</p><p class='black-text'>Earnings will be the major focus (aside from the ongoing government shutdown) this week, as the big banks are due up to report. Tomorrow JP Morgan <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/JPM"><span style="color:#333">(</span><span style=";">JPM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="JPM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="JPM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="JPM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Wells Fargo <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/WFC"><span style="color:#333">(</span><span style=";">WFC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="WFC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="WFC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="WFC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> report, along with two airlines: Delta <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DAL"><span style="color:#333">(</span><span style=";">DAL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DAL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DAL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DAL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and United Airlines <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/UAL"><span style="color:#333">(</span><span style=";">UAL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="UAL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="UAL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="UAL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>. JP Morgan has a strong history of beating on earnings, reporting a beat 83% of the time, while Wells Fargo only beats 52% of the time.</p><p class='black-text'>Sector News</p><p class='black-text'>Utilities were a weak spot today as the news of the PG&E bankruptcy and CEO departure sent utility stocks lower. The sector is currently trading near the lows of its 6-month range.</p><p class='black-text'>Healthcare was lower on the day as well. Technical investors note the recent resistance of the 200-day moving average as a temporary stopping point for the sector. The recent rally off lows has added over 7%.</p><p class='black-text'>Banks were higher on the day today thanks to a positive response to the start of earnings season. Citigroup reported earnings which helped the overall sector, but investors know that the earnings cycle is just beginning.</p><p class='black-text'>Stock News</p><p class='black-text'>PG&E <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/PCG"><span style="color:#333">(</span><span style=";">PCG</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="PCG" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="PCG" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="PCG" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> was one of the big headlines today as the CEO has stepped down. Shares sold off almost 50% today as the company announced they would file for bankruptcy reorganization in a few weeks as liabilities mount.</p><p class='black-text'>Citigroup <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/C"><span style="color:#333">(</span><span style=";">C</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="C" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="C" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="C" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were higher on the day as the company was the first bank to report earnings. Earnings beat expectations thanks to cost-cutting and lower loan losses, but revenue missed by $500 million thanks mostly to trading revenue declines.</p><p class='black-text'>Lululemon <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/LULU"><span style="color:#333">(</span><span style=";">LULU</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="LULU" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="LULU" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="LULU" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were higher today as the company raised their full year earnings and revenue guidance thanks to stronger sales momentum. Shares have now recovered about half of the October-to -December selloff.</p><p class='black-text'>Newmont Mining <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/NEM"><span style="color:#333">(</span><span style=";">NEM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="NEM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="NEM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="NEM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> was in the news today as the company announced they will be acquiring Goldcorp <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/GG"><span style="color:#333">(</span><span style=";">GG</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="GG" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="GG" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="GG" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> for a total of about $10 billion.</p> http://www.pws.io/stock-market-pauses-at-technical-resistance-area Mon, 14 Jan 2019 17:11:42 -0500 Dustin Tibbitts Cryptocurrency Week of January 13 in Review http://www.pws.io/cryptocurrency-week-of-january-13-in-review <p class='black-text'>Perhaps the biggest news of the second week of January is that <a href="https://cointelegraph.com/news/ethereum-classic-51-attackers-allegedly-returned-100-000-to-crypto-exchange">Ethereum Classic</a> (ETC) attackers returned $100,000 to the Gate.io exchange. The Ethereum fork was the victim of a 51% attack, where one part controls the majority of the network's computing power. On Wednesday Gate.io reported that attackers transferred 54,200 ETC during the hack. On Monday, Coinbase identified numerous double spends on the Ethereum Classic network. Ethereum Classic developers alerted the community and blamed selfish mining. It seems plausible that the attackers were not malicious but white hat hackers wanted to warn users about the risks of blockchain consensus.</p><p class='black-text'><a href="https://www.coindesk.com/central-bank-veterans-blockchain-e-money-startup-raises-2-million">Monerium </a>successfully raised $2 million in a seed funding round to finance initial software development. The Icelandic blockchain startup raised capital from Ethereum (ETH) venture studio ConsenSys, Crowberry Capital, and Hof Holdings. Monerium was founded in 2016 and is led by Jon Helgi Egilsson, former chair of the Central Bank of Iceland. The startup wants to develop a mechanism to transact fiat currencies over blockchains, called "e-money." Monerium is working on being a licensed financial institution in the European Union in order to move on to asset management and product development. Its mission is to make blockchain technology more useful and relevant to banks and small businesses.</p><p class='black-text'><a href="https://www.cnbc.com/2019/01/07/bitcoin-security-token-and-sto-explained.html">CNBC </a>reports that the future of blockchain could be security tokens. On Monday, the Estonia-based startup DX.Exchange launched a trading platform that allows users to buy stock in popular tech firms like Apple <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AAPL"><span style="color:#333">(</span><span style=";">AAPL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AAPL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AAPL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AAPL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, Tesla <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TSLA"><span style="color:#333">(</span><span style=";">TSLA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TSLA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TSLA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TSLA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, Facebook <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/FB"><span style="color:#333">(</span><span style=";">FB</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="FB" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="FB" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="FB" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, and Netflix <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/NFLX"><span style="color:#333">(</span><span style=";">NFLX</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="NFLX" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="NFLX" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="NFLX" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> through security tokens. The tokens represent shares, with each token supposedly backed by one share. DX.Exchange aims to allow easier equity trading and extended market hours. However, some experts question if the practice is compliant, as shareholders of the companies have not consented to shares being tokenized. DX states that their security tokens are classified as derivatives and thus legally sound. Security token advocates believe that most financial markets will be tokenized in the next decade.</p><p class='black-text'>Crypto prices cratered this week to $117 billion, January's low. The majors were hit hard; Bitcoin (BTC) fell from above $4,000 to around $3,500, and Ethereum (ETH) from $155 to $114. In the top 100, the biggest losers are Nasdacoin (NSD), down 47%, FLO (FLO), down 29%, and Bitcoin Private (BTCP), down 27%. The biggest gainers are Timicoin (TMC), up 111%, HyperCash (HC), up 40%, and Boolberry (BBR), up 34%. After a relatively tranquil two weeks, it seems crypto has entered another stage of volatility.</p><p class='black-text'><i>The author owns a small long position in AAPL and BTC.</i></p> http://www.pws.io/cryptocurrency-week-of-january-13-in-review Mon, 14 Jan 2019 06:40:38 -0500 Eric Yao Trump Weekly: Shutdown Fight Drags On http://www.pws.io/trump-weekly-shutdown-fight-drags-on <p class='black-text'>Congress ended the week without solving the shutdown,<a href="https://www.cnn.com/2019/01/11/politics/government-shutdown-ties-record-longest/index.html"> which is now on its 22nd day. The shutdown is now officially the longest in US history</a>, with the second-longest occurring for 21 days between 1995 and 1996. Although no progress was made on resolving the spending bill impasse, the House and Senate both approved legislation that would ensure federal workers receive back pay when the shutdown does eventually end. The bill requires Trump's signature. The House has also written bills that would help fund and reopen a few critical shuttered departments, but those are not expected to survive the House. Meanwhile, federal employees missed their first paychecks due to the shutdown. Thousands of them have begun filing for unemployment benefits. It appears that the <a href="https://www.theguardian.com/us-news/2019/jan/11/trump-national-emergency-border-wall-shutdown">Trump administration is actively working to declare a state of emergency </a>and use some of the $13.9 billion reserved in the Army's funds for civil works, such as storm recovery. Trump canceled scheduled his scheduled appearance at the Davos World Economic Forum due to the shutdown.</p><p class='black-text'>The political cost to Trump of the ongoing fight is unclear. Only <a href="https://www.reuters.com/article/us-usa-shutdown-poll-idUSKCN1P223U">51% of Americans believe Trump shoulders most of the blame</a> for the shutdown, yet <a href="https://www.npr.org/2019/01/11/684300134/most-americans-call-shutdown-embarrassing-as-it-s-set-to-become-longest-in-histo">74% of Americans believe that the shutdown is embarrassing</a>, while 72% are certain the shutdown will hurt the country. A mere <a href="https://www.washingtonpost.com/news/monkey-cage/wp/2019/01/11/americans-dont-want-trumps-border-wall-heres-what-they-think-should-happen-instead/">39% of Americans want the wall</a>, and polls show that the majority of Americans don't support the wall without funding from Mexico. Trump repeatedly promised that Mexico would pay for the wall during his campaign and after taking office; however, Trump recently <a href="https://www.nytimes.com/2019/01/11/us/politics/trump-mexico-pay-wall.html">publicly denied ever having made such a statement</a>.</p><p class='black-text'>Meanwhile, the <a href="https://www.nytimes.com/2019/01/11/world/middleeast/us-syria-troop-withdrawal.html">Trump administration has begun withdrawing equipment from Syria</a>, though troops are still present. Trump has declined to release details about winding down operations, citing security concerns.</p><p class='black-text'>The various investigations against the president are still ongoing. <a href="https://www.washingtonpost.com/powerpost/michael-cohen-to-testify-publicly-before-house-panel-in-early-february/2019/01/10/6c0448f4-1516-11e9-90a8-136fa44b80ba_story.html">Michael Cohen, Trump's former attorney who has been sentenced to prison</a>, has agreed to publicly testify in front of the House about his involvement with Trump. More information has emerged about Paul Manafort's involvement with Russian intelligence services. As the Mueller investigation carries on, <a href="https://thehill.com/homenews/administration/424871-exclusive-trump-team-should-be-allowed-to-correct-final-mueller">White House attorney Rudy Giuliani has said it would only be fair</a> for the White House to review and redact his report before it's released to the public in the event that the report is wrong. <a href="https://abcnews.go.com/Politics/rosenstein-expected-depart-doj-coming-weeks-attorney-general/story?id=60252611">Deputy Attorney General Rod Rosenstein</a>, who appeared in danger of being dismissed by the Trump administration over the summer of 2018, has announced that he will be leaving the Justice Department in the coming weeks. He doesn't have a set departure date, and will likely stay until Mueller's investigation is complete or a new deputy attorney general is confirmed. There is no evidence to suggest that Rosenstein is being forced out.</p> http://www.pws.io/trump-weekly-shutdown-fight-drags-on Sat, 12 Jan 2019 12:05:13 -0500 Ariel Courage Macy’s and Autos Reports Spell Possible Gloom for Retail http://www.pws.io/macys-and-autos-reports-spell-possible-gloom-for-retail <p class='black-text'>US stock markets convincingly rebounded after the <a href="https://www.bloomberg.com/news/articles/2019-01-10/jaguar-says-it-will-cut-4-500-jobs-worldwide-amid-brexit-slump">alarming year-end selloff</a>, closing this week in the green, with the S&P 500 (INX) up over 2%. However, though the broader market bounced back, several retailers released bad news that could possibly cast a shadow over retail sales, consumer spending, and corporate earnings. <a href="https://www.cnbc.com/2019/01/10/macys-shares-crater-12percent-on-holiday-sales-results.html">Macy's </a><nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/M"><span style="color:#333">(</span><span style=";">M</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="M" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="M" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="M" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> reported weak holiday sales and cut its profit forecast, leading to a 17% decline in its stock price on Thursday, its worst trading day ever. <a href="https://www.bloomberg.com/news/articles/2019-01-10/from-jaguar-to-macy-s-global-gloom-spreads-across-industries">Ford Motors</a> <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/F"><span style="color:#333">(</span><span style=";">F</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="F" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="F" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="F" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Jaguar Land Rover announced aggressive cost-cutting plans that might be attempts to stave off a downturn in demand.</p><p class='black-text'>Department store Macy's reported weaker-than-expected sales numbers for the holiday period, with physical and online sales only up 1.1%. Specific weakness was found in sales of women's sportswear, sleepwear, fashion jewelry, watches, and cosmetics. Macy's revised its fiscal year 2018 sales forecast down to earnings per share of $3.95 to $4, compared to previous projections of $4.10 to $4.30. It also expects no net sales growth, down from a previous growth estimate of 0.3 to 0.7%. Macy's is currently investing in its mobile app and loyalty program, as well as a discount store called Macy's Backstage. But its poor holiday numbers led Bank of America <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/BAC"><span style="color:#333">(</span><span style=";">BAC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="BAC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="BAC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="BAC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> to downgrade Macy's stock from neutral to underperform thanks to predictions of a greater decline in profits. Other retailers L Brands <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/LB"><span style="color:#333">(</span><span style=";">LB</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="LB" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="LB" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="LB" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, Kohl's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/KSS"><span style="color:#333">(</span><span style=";">KSS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="KSS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="KSS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="KSS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, Nordstrom's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/JWN"><span style="color:#333">(</span><span style=";">JWN</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="JWN" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="JWN" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="JWN" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, J.C. Penney's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/JCP"><span style="color:#333">(</span><span style=";">JCP</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="JCP" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="JCP" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="JCP" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, and Target <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TGT"><span style="color:#333">(</span><span style=";">TGT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TGT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TGT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TGT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> also fell, even with better sales reports than Macy's.</p><p class='black-text'>American and European automakers announced big new layoff plans. <a href="https://www.freep.com/story/money/cars/2019/01/10/ford-job-cuts-volkswagen/2534463002/">Ford </a>will cut hourly and salaried jobs across Europe in an effort to reduce surplus labor costs and streamline its workforce. Ford currently employs 50,000 European workers and has lost a billion dollars in Europe in the last five years. Jaguar plans to layoff 4,500 employees worldwide, a 10% decrease in the firm's workforce. The job cuts are part of the British automaker's move to reduce costs and bolster cash flow. Jaguar cited Brexit worries, decreased demand for diesel vehicles, and a sales slump in China. Jaguar's retail sales have fallen 4.6% in 2018. Jaguar also suggested that it feels pressure from competitors to invest heavily in electric and autonomous automobiles.</p><p class='black-text'>The bad news from Macy's, Ford, and Jaguar could signal a problem at old-fashioned companies who cannot keep up with contemporary tastes and preferences. Younger consumers especially prefer online clothing stores and energy-efficient cars. However, investors fear the Macy's report could signify flagging consumer spending, a bigger issue that affects all American retail. The layoffs at Ford and Jaguar could be part of slowing global demand caused by trade wars and a weakening Chinese economy.</p><p class='black-text'><i>The author does not own any positions in any of the securities above.</i></p> http://www.pws.io/macys-and-autos-reports-spell-possible-gloom-for-retail Sat, 12 Jan 2019 11:14:14 -0500 Eric Yao American Companies Plan to Start Their Own Stock Exchange http://www.pws.io/american-companies-plan-to-start-their-own-stock-exchange <p class='black-text'>Nine financial giants have announced they will launch their own trading exchange, to be named the <a href="https://www.bbc.com/news/business-46787150">Members Exchange</a>. Some notable names include <a href="https://www.bbc.com/news/business-46787150">Morgan Stanley <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MS"><span style="color:#333">(</span><span style=";">MS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, Fidelity Investment, UBS <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/UBS"><span style="color:#333">(</span><span style=";">UBS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="UBS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="UBS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="UBS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Bank of America Merrill Lynch (NYSE: MER-K).</a></p><p class='black-text'>Since paperwork for this new stock exchange has just been initiated, it will not come into existence until at least <a href="https://www.bbc.com/news/business-46787150">2020</a> as it must SEC approval to become a national securities exchange</p><p class='black-text'>"MEMX's mission is to increase competition, improve operational transparency, further reduce fixed costs, and simplify the execution of equity trading in the U.S.," said a<a href="https://www.cnbc.com/2019/01/07/ice-nasdaq-shares-tank-as-wall-street-giants-plan-rival-exchange-memx.html"> press release </a>announcing the exchange. "In addition, MEMX will represent the interests of its founders' collective client base, comprised of retail and institutional investors on U.S. market structure issues. MEMX will seek to offer a simple trading model with basic order types, the latest technology, and a simple, low-cost fee structure."</p><p class='black-text'>Since the announcement, Intercontinental Exchange's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/ICE"><span style="color:#333">(</span><span style=";">ICE</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="ICE" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="ICE" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="ICE" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares have fallen by more than <a href="https://www.cnbc.com/2019/01/07/ice-nasdaq-shares-tank-as-wall-street-giants-plan-rival-exchange-memx.html">2%</a>; ICE is the company that owns NYSE. Nasdaq was also down at the news. Members Exchange has said it doesn't plan to compete with NYSE and Nasdaq to</p><p class='black-text'>"The founding members of MEMX represent leading retail brokers, global banks and financial service firms, and market makers - a diverse array of market participants organizing for the common goal of improving markets for retail and institutional investors," <a href="https://www.thestreet.com/investing/stocks/wall-street-firms-to-launch-members-exchange-to-challenge-nasdaq-and-cme-group-14826046">said</a> Virtu Financial CEO Douglas Cifu, which is one of the founding companies. "The launching of MEMX is a testament to the market-wide demand for competition, innovation, and transparency."</p><p class='black-text'>It has been two years since the launch of a new Wall Street stock exchange, and the move comes as part of an ongoing trend that involves <a href="https://www.cnbc.com/2019/01/07/ice-nasdaq-shares-tank-as-wall-street-giants-plan-rival-exchange-memx.html">cheaper investing options </a>and higher levels of transparency. The number of common investors in general have also increased dramatically in the past few years, yielding the need for a new, fresh market.</p><p class='black-text'>The last such exchange was called IEX, and attempted to <a href="https://www.cnbc.com/2019/01/07/ice-nasdaq-shares-tank-as-wall-street-giants-plan-rival-exchange-memx.html">quell the number of high-frequency trades </a>carried out so as to make the overall stock market more equitable and accessible to common investors. IEX only recently listed its first publicly exchanged company, Interactive Brokers (IEX: IBKR), in October of 2018. There are currently 13 exchanges in the US.</p><p class='black-text'>Addressing prospective competition, Nasdaq <a href="https://www.cnbc.com/2019/01/07/ice-nasdaq-shares-tank-as-wall-street-giants-plan-rival-exchange-memx.html">said</a>: "We welcome competition to our transparent, highly regulated equity markets. However, with more than 40 equity trading venues already in operation in the United States, we are keen to learn more about the value proposition of a new exchange."</p> http://www.pws.io/american-companies-plan-to-start-their-own-stock-exchange Fri, 11 Jan 2019 19:49:42 -0500 Tamanna Chhibbar How Is the Government Shutdown Affecting US Labor Stats? http://www.pws.io/how-is-the-government-shutdown-affecting-us-labor-stats <p class='black-text'>Monthly jobs reports are usually a major metric of American markets, indicating consumer confidence and the health of the economy. However, thanks to the recent government shutdown and the <a href="https://www.cnn.com/2019/01/08/economy/january-jobs-report-shutdown/index.html">800,000</a> workers who have been furloughed, the January jobs report may be immensely skewed.</p><p class='black-text'>The US Bureau of Labor Statistics compiles its report using the pay week starting at the 12th of each month. Thus, if the shutdown continues through next week, these 800,000 workers will not be counted in the report which, would cause the first decline in job stats since <a href="https://www.cnn.com/2019/01/08/economy/january-jobs-report-shutdown/index.html">September of 2010. </a></p><p class='black-text'>According to the <a href="http://www.pewresearch.org/fact-tank/2019/01/09/the-data-casualties-of-the-federal-government-shutdown/">Pew Research Center,</a> "The Bureau of Labor Statistics is fully operational, as it is part of the Labor Department (which was funded back in September). That means the inflation report for December, scheduled to be released Jan. 11, is on track."</p><p class='black-text'>There is, however, still <a href="http://www.pewresearch.org/fact-tank/2019/01/09/the-data-casualties-of-the-federal-government-shutdown/">uncertainty surrounding the January jobs report:</a> "But plans for the January jobs report, data for which are supposed to be gathered next week, are still uncertain: The BLS conducts the payroll survey of employers itself, but the Current Population Survey (which generates the data used to calculate the unemployment rate) is a joint effort with the Census Bureau."</p><p class='black-text'>That said, investors have priced in the large dip in employment into their trading strategies due to everyone's periodic expectation of the jobs report. At most, the stats are expected to have a light effect on the markets. Any impact would undoubtedly correct itself next month, assuming the shutdown doesn't persist.</p><p class='black-text'>"And so what we'll say, if we were to see that negative number: 'Well sure, it was negative, but if you adjust for the furlough, it looks like another plus-200 month or something like that,'" <a href="https://www.cnn.com/2019/01/08/economy/january-jobs-report-shutdown/index.html">said</a> Council of Economic Advisers chairman Kevin Hassett.</p><p class='black-text'>Other important government data points that are more severely affected include <a href="https://www.fedsmith.com/2019/01/07/problem-current-government-shutdown/">The Census Bureau and the Bureau of Economic Analysis, </a>which have temporarily ceased all operations and are unlikely to even get a report out. This may lead the market into some murkier waters than expected, though traders seem to have accounted for slight uncertainty.</p> http://www.pws.io/how-is-the-government-shutdown-affecting-us-labor-stats Fri, 11 Jan 2019 19:15:38 -0500 Tamanna Chhibbar Stock market quietly ends the week. http://www.pws.io/stock-market-quietly-ends-the-week <p class='black-text'>The markets were quietly lower on the day as trading volume was low. The Dow 30 closed lower on the day by 6, the S&P 500 was flat on the day and the Nasdaq 100 closed the day lower by just 14. Volume was about 75% today across all major indices.</p><p class='black-text'>Next week earnings season begins which many investors are content to wait for. Citigroup <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/C"><span style="color:#333">(</span><span style=";">C</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="C" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="C" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="C" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> will kick us off on Monday before the open. JP Morgan <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/JPM"><span style="color:#333">(</span><span style=";">JPM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="JPM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="JPM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="JPM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Wells Fargo <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/WFC"><span style="color:#333">(</span><span style=";">WFC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="WFC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="WFC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="WFC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> will dominate the early headlines on Tuesday as well as some reports from airlines like Delta <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DAL"><span style="color:#333">(</span><span style=";">DAL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DAL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DAL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DAL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and United Airlines <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/UAL"><span style="color:#333">(</span><span style=";">UAL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="UAL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="UAL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="UAL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr></p><p class='black-text'>Sector News</p><p class='black-text'>Oil broke it's win streak today as it found resistance at the 50 day moving average. The commodity lost about 1.5% on the day breaking it's 9 day win streak where it gained over 15%.</p><p class='black-text'>Retail was higher today nearly recovering from all of yesterday's losses. For the week the retail sector was still able to post a gain of about 3.5%.</p><p class='black-text'>Stock News</p><p class='black-text'>Netflix <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/NFLX"><span style="color:#333">(</span><span style=";">NFLX</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="NFLX" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="NFLX" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="NFLX" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were higher today after UBS upgraded the stock to buy with a $410 price target. The analyst said that the stock is likely to rise as they predict subscriber numbers will grow. Raymond James also promoted the stock to clients. Technical traders note the move back to the upper end of the down trend which began back in July of last year.</p><p class='black-text'>Activision Blizzard <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/ATVI"><span style="color:#333">(</span><span style=";">ATVI</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="ATVI" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="ATVI" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="ATVI" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares fell on the news that they would be ending their publishing deal with video game developer, Bungie for the Destiny franchise. They said they will not include any revenue from this franchise in 2019 as they make the transition.</p><p class='black-text'>PVH <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/PVH"><span style="color:#333">(</span><span style=";">PVH</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="PVH" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="PVH" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="PVH" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were higher today as the company raised their fourth quarter guidance, announced they would spend $120 million this year to restructure their Calvin Klein brand and would be closing the stores flagship store in New York City. They also noted that they expect earnings per share to come in 15 cents higher than expected.</p> http://www.pws.io/stock-market-quietly-ends-the-week Fri, 11 Jan 2019 16:54:41 -0500 Dustin Tibbitts Stock market on 5 day win streak. http://www.pws.io/stock-market-on-5-day-win-streak <p class='black-text'>The markets were slightly higher on the day after starting modestly lower. The Dow 30 closed higher on the day by 122, the S&P 500 added 11, and the Nasdaq 100 closed higher on the day by 28. Weakness in retail, the government shutdown, and comments from the Fed chairman helped shape the markets today, with many analysts feeling they've become temporarily overbought.</p><p class='black-text'>Sector News</p><p class='black-text'>Reits had a nice bump higher today as Federal reserve comments continue to suggest a slowing of rate hikes. Technical traders will note the recent runup has made it back to the 200-day moving average.</p><p class='black-text'>Retail stocks were hammered today on a slew of disappointing data from the individual retailers. While technical traders will attribute it to the 50-day moving average resistance, news from Macy's and others helped to pull the sector back as well.</p><p class='black-text'>Stock News</p><p class='black-text'>Macy's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/M"><span style="color:#333">(</span><span style=";">M</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="M" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="M" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="M" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> made headlines today as the company announced weak results for the 2018 holiday shopping season. The retailer also cut its full-year outlook for 2019. Shares sold off nearly 20% on the news, headed back towards 52-week lows.</p><p class='black-text'>Target <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TGT"><span style="color:#333">(</span><span style=";">TGT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TGT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TGT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TGT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares fell today despite some good news that they saw a sharp increase in the number of shoppers over the holiday season. The company showed that web traffic grew 5.7% compared to 3.4% last year. Despite these positives, the company did not raise their profit outlook for the quarter, which concerned investors.</p><p class='black-text'>Boeing <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/BA"><span style="color:#333">(</span><span style=";">BA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="BA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="BA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="BA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> topped the list as one of the best performers in the Dow today as the company was upgraded by Morgan Stanley <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MS"><span style="color:#333">(</span><span style=";">MS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>. The analyst sees a 30% upside potential from here and "is comfortable" recommending the stock considering its recent 15% slide.</p> http://www.pws.io/stock-market-on-5-day-win-streak Thu, 10 Jan 2019 17:25:31 -0500 Dustin Tibbitts CES 2019 Highlights http://www.pws.io/ces-2019-highlights <p class='black-text'>This week the Consumer Electronics Shows, or CES 2019, is underway. CES 2019 lasts from January 8 to 11 and features 4,500 companies and over 180,000 attendees in a sprawling convention center in Las Vegas, Nevada. Sponsored by the Consumer Technology Association, the popular expo has showcased technological innovation since 1967. Here are some highlights from CES 2019 so far:</p><p class='black-text'><a href="https://www.cnet.com/news/ces-2019-everything-that-happened-tuesday-google-assistant-boxing-robot-flying-car/">CES 2019</a> opened with the usual enthralling, high-tech concepts: a flying car, boxing robot, and new smartphones. Transportation startup <a href="https://www.theverge.com/2019/1/7/18168814/bell-air-taxi-nexus-uber-flying-car-hybrid-ces-2019">Bell </a>introduced an "air taxi," a hybrid electric propulsion flying car that aims to be available for Uber ridesharing by the middle of the next decade. It will seat five people and carry up to 600 pounds. Bell has partnered with Uber to explore aerial ridesharing plans. Gym equipment manufacturer <a href="https://www.engadget.com/2019/01/09/botboxer-hands-on/">SkyTech Sport </a>showcased a robotic boxing trainer that works better than a human. With a price tag of $19,900, the boxing robot features sensors that detect pressure and movement as well as voice guidance and a competitive sparring mode. Chinese tech firm <a href="https://www.cnet.com/news/dazzling-honor-view-20-has-you-in-its-thrall-at-ces/">Huawei </a>debuted the Honor View 20, a smartphone boasting a 48-megapixel 3-dimensional camera. The 6.4-inch phone has a gorgeous red chevron pattern, the rear camera uses artificial intelligence to capture details, and the front camera allows selfies of 25 megapixels. The Android phone also features a 4,000 mAh battery, 128 gigabytes of storage, and 6 gigabytes of memory, all better than the average phone.</p><p class='black-text'>Mercedes-Benz showcased its autonomous Vision Urbanetic concept vehicle, and BMW featured a self-driving motorcycle. Philips Hue smart home tech introduced a weatherproof motion sensor, new color-changing lighting fixtures, and a lock that scans faces. Verde's treadmill helps people exercise and generate electricity to power their smart homes. Google <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/GOOGL"><span style="color:#333">(</span><span style=";">GOOGL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="GOOGL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="GOOGL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="GOOGL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> announced many new upgrades and integrations for Google Assistant, its artificial intelligence-powered virtual assistant. And Dell <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DELL"><span style="color:#333">(</span><span style=";">DELL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DELL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DELL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DELL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> debuted the Alienware Area-51m laptop, which it calls the world's most powerful gaming laptop. It lives up to the name with a 17-inch screen, 64 gigabytes of memory, 2.5 gigabit Ethernet, and eight-core processors.</p><p class='black-text'>There was also some <a href="https://www.techradar.com/news/the-weirdest-gadgets-from-ces-2019">weird tech</a> at CES 2019. Japanese robotics startup Groove X introduced Lovot, a cuddly robot that tries to make its owner happy. Lovot, which will cost $5,520, snuggles, follows people around, waves its arms, and falls asleep. The Mui smart display is a piece of wood that is touch-sensitive and displays visual data. It can connect to Google Assistant. Finally, the $7,000 Kohler Numi intelligent toilet allows users to chat with the Amazon <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AMZN"><span style="color:#333">(</span><span style=";">AMZN</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AMZN" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AMZN" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AMZN" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> Alexa while being occupied. A <a href="https://www.bbc.com/news/technology-46809807">controversy </a>is that an acclaimed sex toy for women was banned from the showcase. Some attendees have criticized CES for discriminating against women's empowerment. Overall, the next few days of CES 2019 will hopefully provide more intriguing sights.</p><p class='black-text'><i>The author does not hold any positions in any of the securities above.</i></p> http://www.pws.io/ces-2019-highlights Wed, 09 Jan 2019 22:40:08 -0500 Eric Yao Stock Market Rises Once Again http://www.pws.io/stock-market-higher-yet-again <p class='black-text'>The markets were higher yet again today, as is typical following a presidential address. The Dow 30 was higher by 91, the S&P 500 closed up 10, and the Nasdaq 100 finished the day higher by 60.</p><p class='black-text'>Tomorrow there are a handful of reports that will come out despite the government shutdown, along with important speeches by Fed members. Delta Airlines <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DAL"><span style="color:#333">(</span><span style=";">DAL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DAL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DAL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DAL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> will report earnings before the open as well.</p><p class='black-text'>Sector News</p><p class='black-text'>Oil surged 5.2% today thanks to the Saudi cuts as well as the US inventory reports, which showed a draw of 1.7 million barrels. Analysts expected very little change in inventory.</p><p class='black-text'>Home builders were strong on the day as well thanks to earnings reports out of Lennar Homes. The sector is now higher by over 15% since hitting lows just two and a half weeks ago.</p><p class='black-text'>Stock News</p><p class='black-text'>Constellation Brands <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/STZ"><span style="color:#333">(</span><span style=";">STZ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="STZ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="STZ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="STZ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares broke to new lows today as the company announced earnings that came in lower than expected. The company also lowered their 2019 guidance, assuming 7% growth versus the 10% expected. The downward revision is due in part to the higher interest costs of its recent investment in Canopy Growth <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/CGC"><span style="color:#333">(</span><span style=";">CGC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="CGC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="CGC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="CGC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> where they borrowed $4 billion.</p><p class='black-text'>Apple <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AAPL"><span style="color:#333">(</span><span style=";">AAPL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AAPL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AAPL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AAPL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were higher on the day despite news out of Asia that the company had cut its iPhone production by 10% for this quarter. If true, this is the second time in less than two months that Apple has cut production.</p><p class='black-text'>Footlocker <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/FL"><span style="color:#333">(</span><span style=";">FL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="FL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="FL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="FL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were higher on the day as the company was upgraded by Baird. The analyst said the company can continue to perform positively thanks to strong store sales numbers. Footlocker's recent rally puts it just a few percentage points away from 52-week highs.</p><p class='black-text'>Lennar <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/LEN"><span style="color:#333">(</span><span style=";">LEN</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="LEN" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="LEN" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="LEN" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> reported earnings today showing lower-than-expected new home orders and sales. The company did not give a 2019 forecast, saying that there is continued softness and uncertainty in the housing market.</p><p class='black-text'>GOGO +20%; said they didn't incur certain forecast costs associated with further de-icing efforts in Q4, raising its Adj. Ebitda forecast to the high end of its previous range of $45M-$60M for the year. This is great news considering that the company has lost 144m on 900m in sales.</p><p class='black-text'>Tilray <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TLRY"><span style="color:#333">(</span><span style=";">TLRY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TLRY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TLRY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TLRY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were in the news today as Piper Jaffray initiated coverage on the cannabis company with an overweight rating and a $90 price target. The firm said, "The timing of a regulatory change is hard to predict, but we expect continued global momentum for medical and recreational marijuana legalization." The analyst also gave a similar rating to Canopy Growth <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/CGC"><span style="color:#333">(</span><span style=";">CGC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="CGC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="CGC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="CGC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>.</p> http://www.pws.io/stock-market-higher-yet-again Wed, 09 Jan 2019 17:27:51 -0500 Dustin Tibbitts Sector ETF news of the week. http://www.pws.io/sector-etf-news-of-the-week <p class='black-text'>The markets continue to push off the dramatic lows seen into the end of the year with the S&P 500 <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SPY"><span style="color:#333">(</span><span style=";">SPY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SPY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SPY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SPY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> now over 10% off those lows. Inside the S&P 500 we now have 65 names that have gained 8% or more and 152 names that have gained 5% or more in just the last 5 trading days. The SPY has spent the first few days of the week in the positive though many are looking for a pause or pullback in this rally given how far, and fast it has bounced off the lows.</p><p class='black-text'>The Nasdaq 100 <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/QQQ"><span style="color:#333">(</span><span style=";">QQQ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="QQQ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="QQQ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="QQQ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> also finds itself around 10% off the Christmas Eve lows and has been in rally mode so far this week. The big tech names have seen strong recoveries since hitting those lows and have mostly been in the positive this week so far.</p><p class='black-text'>Semiconductors <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SMH"><span style="color:#333">(</span><span style=";">SMH</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SMH" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SMH" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SMH" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> have found a touch of weakness as news from Samsung weighed on some of the chipmakers. The SMH has been an underperformer in this recent rally by the broad markets and this week has been mostly mixed so far.</p><p class='black-text'>Transportation stocks <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/IYT"><span style="color:#333">(</span><span style=";">IYT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="IYT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="IYT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="IYT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> were given a little boost on Tuesday putting them higher by about 2.5% on the week thanks to news out of the railroads that spurred a string of upgrades. The airline stocks were the only area in the IYT that have held back the sector this week.</p><p class='black-text'>Consumer discretionary <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/XLY"><span style="color:#333">(</span><span style=";">XLY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="XLY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="XLY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="XLY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> stocks have been one of the bright spots since the markets bottomed out in December. This week they carry on with their rally as investors' concerns of a slowing economy seem to fade for now. The sector is higher by about 3.5% this week alone.</p><p class='black-text'>Lastly, Oil <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/USO"><span style="color:#333">(</span><span style=";">USO</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="USO" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="USO" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="USO" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> has seen 7 straight positive days as investors continue to bottom pick the beaten down sector. For the week, oil has added around 3%.</p> http://www.pws.io/sector-etf-news-of-the-week Wed, 09 Jan 2019 11:31:19 -0500 Dustin Tibbitts 126-Year-Old Retailer Sears May Get Second Chance With Auction http://www.pws.io/126-year-old-retailer-sears-may-get-second-chance-with-auction <p class='black-text'>As of January 8, 2019, Sears (OTCMKTS: SHLDQ) has escaped what was thought a near-inevitable <a href="https://www.cnn.com/2019/01/08/business/sears-future-bankruptcy-delay/index.html">bankruptcy and liquidation</a>. At the last minute, Sears and a bankruptcy court approved a deal with ESL, the hedge fund owned by ex-CEO Eddie Lampert. The deal is a slight modification of an original $4.4 billion bid submitted by Lampert in December 2018, and will keep 425 Sears stores open under certain conditions. The final terms of this revised bid are still unknown.</p><p class='black-text'>Lampert has until <a href="https://www.cnbc.com/2019/01/08/chairman-eddie-lampert-to-get-another-chance-to-save-sears-sources-say.html">4 p.m. on Wednesday </a>to come up with the downpayment of $120 million - a preliminary condition. If this downpayment can't be met, then Sears is out of luck. Lampert's bid is the only one designed to keep the retailer open. It is still possible that those who want to bury Sears will outbid Lampert during an auction scheduled for Monday, January 14, thereby claiming rights to the Sears assets. These bidders would likely seek to liquidate the company upon winning. A bankruptcy court must approve the outcome of the auction by January 31.</p><p class='black-text'>Assuming the down payment is met and Lampert wins the auction, Sears still isn't entirely out of the woods. Lampert's deal requires the new Sears to borrow an additional $1.3 billion from three major banks. It remains unclear how much cash Lampert will pay for the assets he's bidding to save. Lampert's original bid contained a pledge to forgive the over $1 billion in debt that Sears owes ESL Investments. It is unclear whether the revised offer preserves these terms. Sears's creditors argue that debt forgiveness should not be included in the terms of the new bid, since Lampert made his loans to the company when he was its CEO. They also suspect that those loans were in fact beneficial to Lampert and his personal hedge fund, rather than being primarily in Sears's best interest. Lampert and his hedge fund both deny these accusations.</p><p class='black-text'>Those fighting to keep Sears open somewhat questionably claim that doing so will provide greatest value to the company's stakeholders, as opposed to liquidating and closing. They also highlight the company's long and storied history. Sears was once the leading retailer and the largest employer in the private sector nationwide. Today, Sears is also responsible for providing 50,000 American jobs.</p><p class='black-text'>Those who seek to end Sears's chapter in history maintain that staying in business any longer would only prolong the inevitable shutdown, and that a shutdown would be the best way to repay the money that Sears owes. Since 2010, <a href="https://www.cnn.com/2019/01/08/business/sears-future-bankruptcy-delay/index.html">the company has lost $12 billion</a>. In recent years, it's also been pushed farther and farther from the spotlight as it loses ground to more technologically current rivals with lower prices and wider product selection, such as Amazon <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AMZN"><span style="color:#333">(</span><span style=";">AMZN</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AMZN" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AMZN" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AMZN" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Walmart (NYSE WMT).</p><p class='black-text'>Executive decisions have also cost the company. The Sears-Kmart merger took place under Lampert in 2005. Ever since, the company has lost $6 billion in share repurchases, a desperate strategy intended to support stock prices. Post-bankruptcy filing, Sears stock lost all of its value. Sears could only compete by closing stores and cutting costs. Meanwhile, it was unfortunately also unable to invest in upkeep and modernization, which resulted in bare shelves and unpleasant in-store environments characteristic of Sears and Kmart stores today. Without a drastic, near-miraculous turnaround very soon, those barren storefronts will be the defining image of Sears's final days.</p> http://www.pws.io/126-year-old-retailer-sears-may-get-second-chance-with-auction Wed, 09 Jan 2019 04:24:40 -0500 Marisa Liu Indian Prime Minister Narendra Modi Introduces New Policies to Curb E-Commerce From Foreign Companies http://www.pws.io/indian-prime-minister-narendra-modi-introduces-new-policies-to-curb-e-commerce-from-foreign-companie <p class='black-text'>In late December, the Indian government headed by Prime Minister Narendra Modi came down hard on global e-commerce giants like <a href="https://www.nytimes.com/2018/12/26/technology/india-amazon-walmart-online-retail.html">Amazon <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AMZN"><span style="color:#333">(</span><span style=";">AMZN</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AMZN" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AMZN" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AMZN" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Walmart <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/WMT"><span style="color:#333">(</span><span style=";">WMT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="WMT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="WMT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="WMT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr></a>. It passed a new set of policies that will become <a href="https://dipp.gov.in/sites/default/files/pn2_2018.pdf">effective on February 1, 2019</a> prohibiting these companies from selling products supplied by affiliated companies on Indian shopping sites. It was already their policy to ban foreign retailers from directly selling on their own e-commerce sites in India. As a result, the global mega-retailers <a href="https://www.nytimes.com/2018/12/26/technology/india-amazon-walmart-online-retail.html">created many partly-owned sites in the Indian market</a>. Discounts and exclusive features provided by these companies will also be prohibited.</p><p class='black-text'>Modi's new policies will force an about-face in Amazon and Walmart's approach to Indian retail strategy. Amazon will be prematurely forced out of competition with independent Indian sellers, and lose the Indian market for <a href="https://www.nytimes.com/2018/12/26/technology/india-amazon-walmart-online-retail.html">selling its proprietary products, such as the Echo speaker</a>. Walmart's $16 billion purchase of a 77% stake in Flipkart now must be considered from a different light. Walmart's history of <a href="https://in.reuters.com/article/us-india-ecommerce-politics-analysis/modis-clampdown-on-e-commerce-in-india-may-not-win-back-votes-of-small-retailers-idINKCN1OR0SL">predatory pricing and deep discounting </a>suggests that it would eventually have created a trade environment where it would out-compete Indian independent sellers. But Modi's new policy will take away Walmart's playing field, and curb the advantage it hoped to gain through <a href="https://www.nytimes.com/2018/12/26/technology/india-amazon-walmart-online-retail.html">its newly forged relationship with India's leading online retailer</a>.</p><p class='black-text'>Modi's reversal comes at a time when his Bharatiya Janata Party's re-election prospects are dangerously low. Modi previously welcomed foreign companies into the country's economic sphere, but now seeks to lower the presence of foreign firms to appeal to the small traders. The small traders are a sector of roughly 25 million small business owners that have been hurt by Modi's<a href="https://in.reuters.com/article/us-india-ecommerce-politics-analysis/modis-clampdown-on-e-commerce-in-india-may-not-win-back-votes-of-small-retailers-idINKCN1OR0SL"> past financial and tax policies</a>. Modi hopes to <a href="https://www.nytimes.com/2018/12/26/technology/india-amazon-walmart-online-retail.html">gain their trust in time for May 2019 elections</a>. But many are still smarting from what they suffered in the lead-up to Modi's reversal. Some small business owners saw profits slashed by over half, as a consequence of Modi welcoming <a href="https://in.reuters.com/article/us-india-ecommerce-politics-analysis/modis-clampdown-on-e-commerce-in-india-may-not-win-back-votes-of-small-retailers-idINKCN1OR0SL">foreign behemoths to the Indian market</a>. There is no guarantee that the majority of this sector will vote for Modi.</p><p class='black-text'>Foreign retailers like Amazon hoped for great success in the Indian market, especially since many are seeing a slowdown in growth in American markets. Prior to this new policy, Amazon <a href="https://www.nytimes.com/2018/12/26/technology/india-amazon-walmart-online-retail.html">invested over $7 billion in its Indian operations</a>. On a global scale, Amazon lost roughly <a href="https://www.nytimes.com/2018/12/26/technology/india-amazon-walmart-online-retail.html">$2.4 billion in the past four quarters</a>.</p><p class='black-text'>Modi's new policy will help locally oriented companies like Paytm, a payments company with a digital mall, and Reliance Industries (NSE: RELIANCE), an Indian conglomerate seeking to <a href="https://www.nytimes.com/2018/12/26/technology/india-amazon-walmart-online-retail.html">claim the Indian online retail market</a>. Reliance happens to be owned by the <a href="https://www.nytimes.com/2018/12/26/technology/india-amazon-walmart-online-retail.html">wealthiest Indian, Mukesh Ambani, a patron of Modi</a>.</p> http://www.pws.io/indian-prime-minister-narendra-modi-introduces-new-policies-to-curb-e-commerce-from-foreign-companie Wed, 09 Jan 2019 04:13:19 -0500 Marisa Liu Stock Market Continues Win Streak http://www.pws.io/stock-market-continues-win-streak <p class='black-text'>The markets enjoyed another push higher today as it continues to recover from the end of year selloff. While all the major indices were higher on the day, the Russell 2000 was the leader with a gain of 1.37%. The Dow 30 closed higher by 256, the S&P 500 added 24, and the Nasdaq 100 finished with a gain of 732. Focus remains on the results of trade meetings.</p><p class='black-text'>Sector News</p><p class='black-text'>Oil prices rose once again as trade talks and export cuts by the Saudis continue to help the bullish case for the commodity. While oil cuts are happening overseas, investors are starting to question the increased output in the US and what effects it will have on the world's supply.</p><p class='black-text'>Transports were one of the leading sectors today thanks in part to the rails. Union Pacific <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/UNP"><span style="color:#333">(</span><span style=";">UNP</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="UNP" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="UNP" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="UNP" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares popped over 8% on news of a new COO, which prompted a string of analyst upgrades and overall bullish calls.</p><p class='black-text'>Stock News</p><p class='black-text'>MasterCard <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MA"><span style="color:#333">(</span><span style=";">MA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were lower on the day following a downgrade to neutral from buy at Bank of America <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/BAC"><span style="color:#333">(</span><span style=";">BAC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="BAC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="BAC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="BAC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>. The analyst cited short-term concerns about valuation and earnings estimates that look high especially on revenue. The company also announced they were changing their logo in an attempt to present itself more as a tech company than a payment processor.</p><p class='black-text'>PG&E <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/PCG"><span style="color:#333">(</span><span style=";">PCG</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="PCG" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="PCG" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="PCG" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares plummeted again as the company is looking at over $30 billion in liabilities from the 2017 and 2018 wildfires in California, which may force it into bankruptcy. S&P Global Ratings also removed their investment-grade rating.</p><p class='black-text'>Facebook <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/FB"><span style="color:#333">(</span><span style=";">FB</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="FB" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="FB" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="FB" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were higher today as comments from JP Morgan <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/JPM"><span style="color:#333">(</span><span style=";">JPM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="JPM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="JPM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="JPM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> said that investors should look past the current controversies and focus on an attractive valuation at these levels.</p><p class='black-text'>Mattel <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MAT"><span style="color:#333">(</span><span style=";">MAT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MAT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MAT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MAT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were higher on news of a Barbie movie franchise. The company has made a consistent effort to move into the digital world, with original content production as one of their main focuses.</p> http://www.pws.io/stock-market-continues-win-streak Tue, 08 Jan 2019 17:06:36 -0500 Dustin Tibbitts One technical rule you never break. http://www.pws.io/one-technical-rule-you-never-break <p class='black-text'>There is an old rule in the world of technical traders that just showed up in the markets as well as many of the stocks with market like movement. The rule is simple, but understanding it can save your from being misled. Never sell the first pullback after a climactic decline. A simple sentence for you to never forget.</p><p class='black-text'>If you look at the S&P 500, or any of the broad indices going into the end of the year you will see a strong sell off. As the end of the year drew closer and closer it seemed that the sell off became stronger and stronger. Each day was slightly larger in declines than the previous and the trading volume increased seemingly every day. In addition to that, prices moved further and further from their 20 period moving average, a short term technical tool that traders like to use. Brutal, nonstop pressure to the downside pushed the markets into the end of the year, creating a price chart that began to look like a waterfall, or "climactic."</p><p class='black-text'>As is always the case, when this happens and a stock or market moves too far, too fast away from it's 20 period moving average, it acts like a rubber band and price tends to snap back. By December 26th the rubber band took effect and pulled the markets strongly back towards the 20 period moving average. This is when you should remember the rule: Do not sell the first pullback after a climactic decline.</p><p class='black-text'>By December 31st the markets had stalled and began to sell off after it's climactic decline. While the media and others start to claim that the bounce is over and more selling is coming, you know the rule: Do not sell the first pullback after a climactic decline. On January 4th you were shown your reason why this rule should be etched in stone in your rule book.</p> http://www.pws.io/one-technical-rule-you-never-break Tue, 08 Jan 2019 10:40:57 -0500 Dustin Tibbitts Government Shutdown Deadlock Set to Extend as Trump Digs His Heels in on Border Wall http://www.pws.io/government-shutdown-deadlock-set-to-extend-as-trump-digs-his-heels-in-on-border-wall <p class='black-text'>The government shutdown continues due to deadlock over border wall funding. President Trump is demanding $5.7 billion in funding for his proposed wall at the US-Mexico border; however, Congressional Democrats are only willing to budget $1.6 billion for the entire border defense budget. Approximately 25% of the federal government has been shut down because of this and 800,000 workers have been affected, 350,000 of which are not receiving pay. Many are worried about the long-term ramifications of the shutdown. Many feared the IRS wouldn't be able to process their tax returns, though the Trump administration sought to <a href="https://www.nytimes.com/2019/01/07/us/politics/tax-return-refunds-government-shutdown.html">assuage these fears on Monday</a>. There's no word yet on how <a href="https://www.politico.com/story/2019/01/07/food-stamps-government-shutdown-1062090">food stamps</a> and other essential services might be impacted.</p><p class='black-text'>The Republican-controlled House passed a bill late December that would fund several key government agencies until February 8th and push the discussion over wall funding to the next Congress. The Senate, which was controlled by Republicans until January 3, 2019, was unable to pass the bill, as they needed the cooperation of at certain number of Democrats to reach the 60-vote mark.</p><p class='black-text'>President Trump has stated that he is unwilling to compromise. In a series of posts on Twitter, President Trump has blamed Democrats for the shutdown," stating that he would be "proud to shut down the government for border security," an issue pivotal to his presidential campaign. President Trump also tweeted that "The Democrats, whose votes we need in the Senate, will probably vote against Border Security and the Wall even though they know it is DESPERATELY NEEDED," that "If the Dems vote no, there will be a shutdown that will last for a very long time," and that "People don't want Open Borders and Crime!"</p><p class='black-text'>Since the shutdown began - it's now more than two weeks since its start - control of the House has shifted to the Democrats. Democrats have drafted multiple bills that would fund the government through fall of 2019. Since they don't contain the $5.7 billion requested, these bills are dead in the water. Trump has held several meetings with high-ranking members of Congress. Trump has alternated between calling these meetings "productive" and venting his frustrations with the Democrats. The Democrats have expressed clearly that Trump has told them he's willing to let the shut down drag on for months or years until he has his way. As per the latest negotiations on Monday, Trump is <a href="https://www.washingtonpost.com/national/health-science/as-shutdown-drags-on-trump-officials-seek-novel-ways-to-cope-with-its-impacts/2019/01/06/96c54a50-11ee-11e9-90a8-136fa44b80ba_story.html?utm_term=.1f6c2b4e953a">now asking for the original</a> $5.7 billion towards the construction of a steel wall, along with an extra $800 million to address the "border crisis." He didn't detail further what the funds would be used for or why he needed to ask for more at this time.</p><p class='black-text'>The market has also responded to this government shutdown with continued volatility. Deadlock initially pushed numbers sharply lower. Durable stable goods climbed while biotechnology, software, commercial real estate and chemical stocks saw considerable weakness. The market has seen a slight rally thanks to unrelated issues, such as a drop in oil supply and rebounding tech stocks.</p><p class='black-text'>Polls show that the shutdown is not reflecting well on politicians from either side of the aisle. Trump's <a href="https://www.cnn.com/2018/12/13/politics/cnn-poll-congress-pelosi-impeachment/index.html">approval rating</a> is also at a dismal 39%.</p> http://www.pws.io/government-shutdown-deadlock-set-to-extend-as-trump-digs-his-heels-in-on-border-wall Mon, 07 Jan 2019 20:52:44 -0500 Karina Petrunova Is There a Fix for Apple's iPhone Woes? http://www.pws.io/is-there-a-fix-for-apples-iphone-woes <p class='black-text'>Investors are scrambling over Apple's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AAPL"><span style="color:#333">(</span><span style=";">AAPL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AAPL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AAPL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AAPL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> recent wave of losses, which resulted in a <a href="https://www.latimes.com/business/technology/la-fi-tn-apple-iphone-innovation-20190103-story.html">10% </a>stock drop last Thursday. Though it rallied a bit on Friday, it was down again on <a href="https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-2019-stock-market-rally-apple-stock-amazon-stock/">Monday by .2%</a>.</p><p class='black-text'>Apart from losing around <a href="https://techcrunch.com/2019/01/03/apple-losses-trigger-a-plunge-in-u-s-markets/">$75 billion</a> in value and officially admitting that it missed earnings estimates in China, the tech giant has faced criticism from consumers and techies alike for failing to innovate at a faster pace.</p><p class='black-text'>"Perhaps in part because there are no easy fixes, Apple failed to acknowledge the possibility that current iPhone prices are simply too high," <a href="https://www.latimes.com/business/technology/la-fi-tn-apple-iphone-innovation-20190103-story.html">says</a> Toni Sacconaghi, an analyst at Bernstein Research. "The other real issue that Apple's press release did not mention explicitly is that the high-end smartphone market is increasingly mature (having declined for three straight years) and the overall market contracted for the first time in 2018."</p><p class='black-text'>Thus, the economic slowdown in China isn't the only factor to blame for Apple's grievances. In fact, a major issue is premium iPhone prices that are simply unable to gain traction in markets that already have a plethora of<a href="https://www.theguardian.com/technology/2019/jan/03/apple-woes-go-far-beyond-slowdown-in-chinese-economy"> low-cost smartphones </a>with similar functionality, usually manufactured by Android competitors. One such market is <a href="https://www.theguardian.com/technology/2019/jan/03/apple-woes-go-far-beyond-slowdown-in-chinese-economy">India</a>.</p><p class='black-text'>"The bulk of the iPhone user base may not be ready to shell out $1,200+ for base iPhone models which used to cost $699 just a few years ago," <a href="https://www.theguardian.com/technology/2019/jan/03/apple-woes-go-far-beyond-slowdown-in-chinese-economy">said</a> Neil Shah of Counterpoint Research. "Not all of the hundreds of millions of Apple iPhone user base are affluent."</p><p class='black-text'>Tim Cook <a href="https://www.latimes.com/business/technology/la-fi-tn-apple-iphone-innovation-20190103-story.html">said</a> that even in developed markets, "iPhone upgrades also were not as strong as we thought they would be," implying that consumers would prefer to use their old iPhones instead of springing thousands for a new phone with limited enhancements. This further reflects that Apple is not innovating enough, and that people are investing in its products as opposed to its brand. A mere four years ago, this was not the case; whether due to irresistible upgrades or cultish brand loyalty, consumers would be ready to buy their next iPhone after <a href="https://www.latimes.com/business/technology/la-fi-tn-apple-iphone-innovation-20190103-story.html">24 months according to BayStreet Research.</a></p><p class='black-text'>While China is an integral market in Apple's long-term play, it needs to regain market share in emerging economies such as India before it becomes priced out. The brand may need to consider entering with a low price point in such markets, or run different marketing campaigns targeted to various segments of the population and tout the software benefits of owning an iPhone, including features such as <a href="https://www.theguardian.com/technology/2019/jan/03/apple-woes-go-far-beyond-slowdown-in-chinese-economy">Apple Pay or Apple Music. </a></p><p class='black-text'>The downward trend for iPhone sales has caused many to question Cook's leadership and management as well. "It's possible conditions in China changed quickly, but the broader trends in smartphone activity are not new. Why didn't Cook make any of these admissions before now?" <a href="https://www.latimes.com/business/technology/la-fi-tn-apple-iphone-innovation-20190103-story.html">said</a> analyst Shira Ovide.</p><p class='black-text'>That said, Apple still has <a href="https://www.theguardian.com/technology/2019/jan/03/apple-woes-go-far-beyond-slowdown-in-chinese-economy">73% </a>of the premium segment of smartphones in China, which could grow. Still, simply focusing on the Chinese market is not enough to sustain the giant over the long term.</p> http://www.pws.io/is-there-a-fix-for-apples-iphone-woes Mon, 07 Jan 2019 20:31:08 -0500 Tamanna Chhibbar US Auto Market Ends 2018 on Sour Note http://www.pws.io/us-auto-market-ends-2018-on-sour-note <p class='black-text'>In line with the bearish auto market in China, US auto makers have also declared a weak fiscal year at the close of 2018.</p><p class='black-text'>Ford <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/F"><span style="color:#333">(</span><span style=";">F</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="F" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="F" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="F" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> stated that sales dropped by <a href="https://www.washingtonpost.com/business/economy/most-automakers-end-2018-in-a-sales-slump/2019/01/03/979b5cb0-0f57-11e9-84fc-d58c33d6c8c7_story.html?utm_term=.4d7218961adc">8.8% </a>in December, with demand waning for vehicles like pickup trucks and SUVs. The latter fell by <a href="https://www.cnbc.com/2019/01/03/general-motors-new-vehicle-sales-drop-2point7percent-in-the-fourth-quarter.html">4.4%</a>. Moreover, Ford's transaction prices rose to $38,400 per car, implying that it is costing the company more to acquire an additional customer and sell more products to existing customers. This is primarily driven by <a href="https://www.cnbc.com/2019/01/03/general-motors-new-vehicle-sales-drop-2point7percent-in-the-fourth-quarter.html">market trends</a>, as consumers are demanding less sedans and more heavy automobiles such as pickup trucks.</p><p class='black-text'>GM <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/GM"><span style="color:#333">(</span><span style=";">GM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="GM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="GM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="GM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, the No.1 US automaker, also suffered declines, with sales <a href="https://www.cnbc.com/2019/01/03/general-motors-new-vehicle-sales-drop-2point7percent-in-the-fourth-quarter.html">dropping by 2.7%</a> in the last quarter of 2018. Many of its high-margin SUVs were impacted by the decline, including the Chevrolet Suburban. Many of its high-margin SUVs were impacted by the decline, including the <a href="https://www.cnbc.com/2019/01/03/general-motors-new-vehicle-sales-drop-2point7percent-in-the-fourth-quarter.html">Chevrolet Suburban</a>.</p><p class='black-text'>Aside from consumer taste shifting towards pickup trucks, there is the electric car phenomenon that has to be factored in to sales predictions. <a href="https://www.treehugger.com/cars/can-legacy-automakers-survive-switch-electric.html">Research</a> has found that "20% of American drivers and 40% of European drivers expect their next car to be electric."</p><p class='black-text'>This has threatened the position of legacy automakers like GM and Ford, and placed the spotlight instead on carmakers such as Tesla <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TSLA"><span style="color:#333">(</span><span style=";">TSLA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TSLA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TSLA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TSLA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, that are fully invested in the sector.</p><p class='black-text'>Analyst Kyle Stock <a href="https://www.treehugger.com/cars/can-legacy-automakers-survive-switch-electric.html">says</a> many of these legacy automakers will not be able to keep up if they don't innovate going into 2019: "They are essentially using an old technology to fund the transition to the next, and the timing is fraught. Jump to the electric drive train too soon and the whole works will grind to a halt; jump too late and lose the EV race. Startups such as Tesla, critically, don't have to make this awkward jump. They are tiny and inexperienced, but they don't have to worry about feeding a legacy business as it slowly winds down."</p><p class='black-text'>Even so, it is all not bleak for the car giant as Ford still runs on monthly financials, which some argue do not accurately encapsulate a company's fiscal position. It is considering switching gears to <a href="https://www.cnbc.com/2019/01/03/general-motors-new-vehicle-sales-drop-2point7percent-in-the-fourth-quarter.html">quarterly reporting</a>, which covers a longer period of time. Automakers are generally optimistic about the new year ahead.</p><p class='black-text'>"Despite recent market turbulence, the data we have in hand suggests an economy that remains on solid footing heading into the new year," Ford Chief Economist Emily Kolinski Morris <a href="https://www.cnbc.com/2019/01/03/general-motors-new-vehicle-sales-drop-2point7percent-in-the-fourth-quarter.html">said</a>. "Consumers seem to be looking through market volatility to focus on continued positive job and income conditions."</p><p class='black-text'>Still, US auto sales are predicted to continue to drop in the new year, thanks to rising interest rates and less disposable income for consumers.</p> http://www.pws.io/us-auto-market-ends-2018-on-sour-note Mon, 07 Jan 2019 20:18:18 -0500 Tamanna Chhibbar Stock Market Starts the Week in the Green http://www.pws.io/stock-market-starts-the-week-in-the-green <p class='black-text'>The markets started the week on a positive note as the trade talks in China begin. The Dow 30 was higher on the day by 98, the S&P 500 closed higher by 17, and the Nasdaq 100 added 84 on the day. A handful of expected reports were not issued today, as the government remains shutdown. The White House did announce later in the day that refunds will go out despite the shutdown.</p><p class='black-text'>Sector News</p><p class='black-text'>OIl continued its string of gains today, higher now for the sixth straight day. Last week investors responded to the draw in overall US inventory, which bled into this week as well. In addition, there were reports of further cuts out of Saudi Arabia, which helped support prices.</p><p class='black-text'>Semiconductors were stronger on the day thanks to some news out of CES in Vegas. Nvidia announced new, lower-priced graphics cards, which sent the stock and others in the space higher.</p><p class='black-text'>Stock News</p><p class='black-text'>Eli Lilly <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/LLY"><span style="color:#333">(</span><span style=";">LLY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="LLY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="LLY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="LLY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> is the latest in the healthcare space to announce an acquisition. They pharmaceutical company announced they would be buying cancer drug company, Loxo Oncology <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/LOXO"><span style="color:#333">(</span><span style=";">LOXO</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="LOXO" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="LOXO" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="LOXO" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> for $8 billion in cash. This equates to a deal of $235 per share.</p><p class='black-text'>PG&E <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/PCG"><span style="color:#333">(</span><span style=";">PCG</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="PCG" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="PCG" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="PCG" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> - shares fell over 20% after reports came out on Friday that the California utility may be forced into bankruptcy thanks to the massive liabilities from wildfires which were caused by its equipment in 2017 and 2018.</p><p class='black-text'>Apple <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AAPL"><span style="color:#333">(</span><span style=";">AAPL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AAPL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AAPL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AAPL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> announced deal with Samsung to distribute iTunes shows on Samsung-branded smart TVs. Look for an app in the coming months. Apple shares continue to trade near 52-week lows.</p><p class='black-text'>Dollar Tree <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DLTR"><span style="color:#333">(</span><span style=";">DLTR</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DLTR" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DLTR" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DLTR" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> spiked higher today as news came out from the Wall Street Journal that activist investor Starboard Value was pushing the company to sell Family Dollar and change its overall pricing model. Shares traded nearly back to last May's highs and are now up almost 8% in just the last month.</p><p class='black-text'>Tesla <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TSLA"><span style="color:#333">(</span><span style=";">TSLA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TSLA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TSLA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TSLA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were higher as the CEO Elon Musk was in China to break ground on their new gigafactory.</p> http://www.pws.io/stock-market-starts-the-week-in-the-green Mon, 07 Jan 2019 17:15:27 -0500 Dustin Tibbitts Time for Dividends? http://www.pws.io/time-for-dividends <p class='black-text'>If you have participated in the markets recently then you certainly have noticed the sharp sell off. While this can create a ton of concern for investors, one benefit to this is the increase in dividends offered by many of the cash rich, profitable companies. Today we take a quick look at the dividends offered in the S&P 500.</p><p class='black-text'>In the S&P 500 many investors lean towards REIT's for their dividend payouts as they have a history and obligation to pay out the majority of their returns to shareholders. There are currently 11 REIT's that pay 4% or greater but that doesn't really impress investors as they are used to that area of the market offering high yields.</p><p class='black-text'>If we remove the 11 REIT's from the list we now have 65 names in the S&P 500 that are offering dividends yields of 4% or more. There are 27 names (aside from REIT's) that offer a dividend yield of 5% or more.</p><p class='black-text'>Many of these names are strong brands which have either went through a period of adjusting to new economic challenges, brand rebuilding, or simply sold off with recent market pressure.</p><p class='black-text'>Limited Brands <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/LB"><span style="color:#333">(</span><span style=";">LB</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="LB" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="LB" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="LB" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, the parent company of Victoria's Secret, is one of the names in the retail space that is offering nearly 10%. The stock has fallen over 50% over the past year and now offers a 9.07% yield. Ford <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/F"><span style="color:#333">(</span><span style=";">F</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="F" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="F" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="F" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> is another high yielding stock with a 7.71% dividend yield.</p><p class='black-text'>A quick scan of the S&P 500 shows that there is now at least one name in every sector of the market that offers a dividend yield of 4.5% or greater. While dividend investing may not be the major focus of every investor, who would turn down an extra 4%?</p> http://www.pws.io/time-for-dividends Mon, 07 Jan 2019 12:42:46 -0500 Dustin Tibbitts IPO Update January 2019 http://www.pws.io/ipo-update-january-2019 <p class='black-text'>The IPO markets are starting to pick back up after taking the last few weeks off for the holiday season. Despite the weakness in the broad markets, there are still companies gearing up for their initial offerings. Though there are no offerings up for grabs this week, 2019 has many high-profile names that either want to go public or will have to IPO as pressure from initial investors mounts.</p><p class='black-text'>A benchmark for 2019 will be 2018's performance of the IPO markets. 2018 was a good year overall for debuting companies, though most names were pressured to lows during the end-of-year selloff. There were a total of 190 names that went public last year, which was just slightly higher than 2017's 160 IPOs. The total amount raised was the major focus, coming in at just over $47 billion. This was a 30%+ increase from 2017. Much of the proceeds went to Chinese offerings as well as biotech IPOs.</p><p class='black-text'>The Chinese string of offerings continues here in 2019 with Powerbridge Technologies <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/PBTS"><span style="color:#333">(</span><span style=";">PBTS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="PBTS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="PBTS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="PBTS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and their $15 million offering. This is a trade management provider and software services company based in Zhuhai, China. Their filing shows that they have revenue over the last 12 months of $23 million.</p><p class='black-text'>Another interesting filing comes from the online gaming platform, Super League Gaming <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SLGG"><span style="color:#333">(</span><span style=";">SLGG</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SLGG" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SLGG" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SLGG" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> out of California. As gaming becomes more and more popular here in the states, Super League hopes to expand their offering with a $25 million IPO. At only four years old, this is a young company, but it had over $1 million sales in the last year.</p> http://www.pws.io/ipo-update-january-2019 Sun, 06 Jan 2019 21:50:06 -0500 Dustin Tibbitts Cryptocurrency Week of January 6 in Review http://www.pws.io/cryptocurrency-week-of-january-6-in-review <p class='black-text'>Perhaps biggest news of the first week of 2018 is that <a href="https://medium.com/bakkt-blog/first-capital-raise-739db1bab6d3">Bakkt </a>has raised $182 million in its first round. The cryptocurrency startup owned by Intercontinental Exchange (ICE) included 12 partners and raised $182.5 million from Boston Consulting Group, Galaxy Digital, Goldfinch Partners, ICE, M12, Pantera Capital, and Protocol Ventures. Bakkt is working on the first institutional-grade regulated exchange, as well as clearing and warehousing services that allow physical delivery and storage of coins. The January 24 launch of Bakkt's Bitcoin (BTC) futures market has been delayed again, due to continuing talks with the US Commodity Futures Trading Commission, but Bakkt plans to disclose the new launch date soon.</p><p class='black-text'>Here is the rest of the week in review:</p><p class='black-text'><a href="https://www.coindesk.com/the-first-cryptocurrency-to-use-mimblewimble-privacy-tech-is-now-live">Beam </a>launched its cryptocurrency on January 3. The new project is the first released to implement the MimbleWimble privacy protocol. MimbleWimble is a method that can help make transactions more anonymous and untraceable through hiding transaction amounts and the addresses of senders and receivers. Beam also uses Dandelion, a technology that randomizes the pathways on a decentralized network. Beam aims to allow users to have complete control over which personal data will be available to which parties. Another MimbleWimble-based competitor, Grin, will debut its coin on January 15. Neither Beam nor Grin plan to conduct an initial coin offering (ICO), instead funding themselves through donations and nonprofit development.</p><p class='black-text'>The<a href="https://www.coindesk.com/thai-government-agency-develops-blockchain-tech-for-elections-voting"> government of Thailand</a> recently developed a blockchain solution to voting that is able to reform elections in that country. The <i>Bangkok Post</i> reported on Thursday that Thailand's National Electronics and Computer Technology Center finished developing its blockchain-based voting system. The government ministry is now searching for partners to try the technology for local elections and university experiments. The goal of the ministry's software is to cut down on electoral fraud and maintain data integrity. Voters will need an accessible mobile Internet connection and digital identification to use the blockchain voting system.</p><p class='black-text'>Crypto prices traded in a tight range before a small weekend boost to reach $138 billion. BTC topped $4,000, and Ethereum (ETH) rose above $155. In the top 100, the biggest losers are BridgeCoin (BCO), down 17 percent, BOScoin (BOS), down 13 percent, and SmartCash (SMART), down 10 percent. The biggest gainers are FLO (FLO), up 41 percent, Litecoin (LTC), up 24 percent, and Peercoin (PPC), up 23 percent. Exactly a year after the all-time high market capitalization, investors are looking to see if crypto can break out of making lower highs and lower lows into real bullish momentum.</p><p class='black-text'><i>The author owns a small amount of BTC and LTC.</i></p> http://www.pws.io/cryptocurrency-week-of-january-6-in-review Sun, 06 Jan 2019 21:44:47 -0500 Eric Yao Trump Weekly: Border Wall Battle Drags On http://www.pws.io/trump-weekly-border-wall-battle-drags-on <p class='black-text'>The government shutdown continues with no end in sight as the border wall funding standoff continues. Trump has apparently considered declaring a state of emergency so he can bypass Congress and access $4 billion in Department of Defense funding to build the wall. In the past, when a president has declared a state of emergency, the Defense secretary then notifies top Congressional leaders, who must signal their approval, but it's possible Trump will find a <a href="https://www.nbcnews.com/politics/white-house/trump-threatens-shut-down-government-months-or-even-years-schumer-n954856">workaround to this hurdle</a>. Legal experts say Trump's national emergency plan is unlikely to go as smoothly as he expects. The court system has <a href="https://www.nbcnews.com/politics/donald-trump/fact-check-what-s-national-emergency-can-trump-declare-one-n954966?cid=referral_taboolafeed">blocked presidents past</a> from taking actions even in a state of emergency. Still, because the military can back construction projects during wartime or in emergencies, Trump may be able to access unallocated funds within the Department of Defense - though it may not be the $4 billion he believes. Despite the ongoing shutdown and the current furlough of 800,000 federal employees, Trump's White House staff members are scheduled to receive a $10,000 pay raise tomorrow.</p><p class='black-text'>Meanwhile, the Democratic House is struggling to fight Trump's agenda in a gridlocked Congress. They've introduced multiple spending bills to fund the government and a collection of ethics reform bills, including one that would require Trump to disclose his tax returns covering the past 10 years. None of these bills are expected to survive a Republican-controlled Senate. There's also a standoff over the confirmations of 70 judges that Trump has <a href="https://www.politico.com/story/2019/01/02/trump-judicial-nominees-1077658">nominated to the courts</a>, with Senate Majority Leader Mitch McConnell and Senate Minority Leader Chuck Schumer at an impasse.</p><p class='black-text'>Trump for his part has kept the partisan rhetoric strong; though he's mostly pinned turbulent market performance late in 2018 on Federal Reserve Chairman Jerome Powell, he now is saying that the Democratic sweep of <a href="https://www.cnbc.com/2019/01/04/trump-blames-democrat-takeover-of-the-house-for-market-sell-off-but-says-things-will-settle-down.html">midterm elections was behind the volatility</a> -an argument he first made in October 2018. Perhaps predictably, Trump has generally been thrilled to take credit for any market gains and eager to blame his foes for market falters. Meanwhile, the national debt has ballooned <a href="https://fox43.com/2019/01/04/us-national-debt-rises-2-trillion-under-president-trump/">$2 trillion in the two-ish years</a> that Trump's been in office.</p><p class='black-text'>More quietly, the Trump administration is continuing to push its deregulation agenda by considering a rollback of enshrined <a href="https://www.washingtonpost.com/local/education/trump-administration-considers-rollback-of-anti-discrimination-rules/2019/01/02/f96347ea-046d-11e9-b5df-5d3874f1ac36_story.html?utm_term=.783fae074595">civil rights law</a> that guards against discrimination in housing, transportation, education, and other arenas. A source indicated that the Trump administration issued a memo to Justice Department employees ordering them to conduct an assessment of how "disparate impact" rules could be curtailed or cut altogether, and to detail what impact these changes may have.</p><p class='black-text'>In more bizarre news, Trump this week during a cabinet meeting put a poster on the table. The table showed a picture of Trump, <a href="https://www.nytimes.com/2019/01/03/us/politics/trump-game-of-thrones-poster.html">along with the phrase</a>, "SANCTIONS ARE COMING NOVEMBER 4," a reference to the HBO series "Game of Thrones" that Trump used in November on Twitter to announce his Iran sanctions. The poster was apparently not discussed at the meeting, nor was its presence subsequently explained.</p> http://www.pws.io/trump-weekly-border-wall-battle-drags-on Sun, 06 Jan 2019 21:40:41 -0500 Ariel Courage Stock Market Soars to Close Out Week http://www.pws.io/stock-market-soars-to-close-out-week <p class='black-text'>The markets reversed their sentiment today after yesterday's nasty decline. Excellent jobs numbers and Fed comments helped hold markets to their highs of the day, completely erasing yesterday's losses. The Dow 30 closed higher by 746, the S&P 500 added 84, and the Nasdaq 100 closed higher on the day by 275.</p><p class='black-text'>Sector News</p><p class='black-text'>Transports completely erased all of yesterday's losses as investor sentiment completely changed overnight. Yesterday's laggards became today's leaders in the space, pushing the sector to its highs of the week.</p><p class='black-text'>Oil shot to new weekly highs, having its fifth straight day of gains thanks to an inventory report showing a decline in supply of 4.5 million barrels. Oil is higher now by about 7% on the week.</p><p class='black-text'>Stock News</p><p class='black-text'>Netflix <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/NFLX"><span style="color:#333">(</span><span style=";">NFLX</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="NFLX" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="NFLX" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="NFLX" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were sharply higher on the day as Goldman Sachs <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/GS"><span style="color:#333">(</span><span style=";">GS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="GS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="GS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="GS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> added it to their conviction buy list. Shares are higher by almost 25% since marking a low a mere eight days ago.</p><p class='black-text'>Intel <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/INTC"><span style="color:#333">(</span><span style=";">INTC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="INTC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="INTC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="INTC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were higher on the day as Bank of America <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/BAC"><span style="color:#333">(</span><span style=";">BAC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="BAC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="BAC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="BAC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> upgraded the stock to buy and raised their price target to $60. Analysts cite a an above 10 price-to-earnings ratio as one reason for upgrade, along with A.I. inroads and 5G developments.</p><p class='black-text'>Tesla <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TSLA"><span style="color:#333">(</span><span style=";">TSLA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TSLA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TSLA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TSLA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares spiked today on news that the carmaker would start delivering the Model 3 to Chinese customers in March. Shares are still lower by about 2% on the week and below the 200-day moving average.</p> http://www.pws.io/stock-market-soars-to-close-out-week Fri, 04 Jan 2019 16:26:23 -0500 Dustin Tibbitts Will AI Export Caps Curb Tech Development? http://www.pws.io/will-ai-export-caps-curb-tech-development <p class='black-text'>The struggle to balance national security concerns with innovation continues as the Commerce Department <a href="https://www.nytimes.com/2019/01/01/technology/artificial-intelligence-export-restrictions.html">listed</a> artificial intelligence as one of the multiple items under the scanner for new export rules.</p><p class='black-text'>The limitations that the department has placed on these earmarked items could range from requiring companies to <a href="https://futurism.com/ai-export-restrictions-national-security">get a license</a> before selling tech to full bans on certain facets of AI in various nations.</p><p class='black-text'>The prospect of curbing AI exports has put many <a href="https://www.nytimes.com/2019/01/01/technology/artificial-intelligence-export-restrictions.html">Silicon Valley startups </a>on edge, as AI is the cornerstone of their research and development. They're worried about competition from countries like China. China has aggressively invested in the technology, and plans to be a global leader in <a href="https://multimedia.scmp.com/news/china/article/2166148/china-2025-artificial-intelligence/index.html">AI development by 2030</a>.</p><p class='black-text'>"The number of cases where exports can be sufficiently controlled are very, very, very small, and the chance of making an error is quite large," <a href="https://www.nytimes.com/2019/01/01/technology/artificial-intelligence-export-restrictions.html">said</a> Jack Clark of OpenAI, an artificial intelligence lab in San Francisco. "If this goes wrong, it could do real damage to the A.I. community."</p><p class='black-text'>The consequences of a potential curb could also extend to the labor force, as employees could relocate to areas where they feel their talent is more valued. This has serious implications for the US-China trade war, with China having the potential to<a href="https://hothardware.com/news/us-seeks-restrictions-ai-exports-bolster-national-security"> siphon off </a>engineering talent from the US.</p><p class='black-text'>Policymakers claim that AI has a "<a href="https://www.nytimes.com/2019/01/01/technology/artificial-intelligence-export-restrictions.html">dual-use</a>," which ranges from commercial applications to potentially harmful uses in the military and in weaponry.</p><p class='black-text'>R. David Edelman of MIT says "trying to draw a line between what is military and what is commercial is exceedingly difficult. It may be impossible." He also <a href="https://www.nytimes.com/2019/01/01/technology/artificial-intelligence-export-restrictions.html">said</a>, "The core of these technologies is international and freely available. No country - the U.S. or China - has a monopoly on that."</p><p class='black-text'>Thus, the export restriction could also be a hindrance to the <a href="https://www.nytimes.com/2019/01/01/technology/artificial-intelligence-export-restrictions.html">open flow of information principle</a> that AI is built on, where AI companies are often extremely transparent regarding the work they do in the hopes that other researchers will build on existing data to ultimately uncover more knowledge.</p> http://www.pws.io/will-ai-export-caps-curb-tech-development Fri, 04 Jan 2019 15:18:53 -0500 Tamanna Chhibbar Netflix Finds a New CFO http://www.pws.io/netflix-finds-a-new-cfo <p class='black-text'>Former Activision Blizzard CFO Spencer Neumann has now been picked up by Netflix <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/NFLX"><span style="color:#333">(</span><span style=";">NFLX</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="NFLX" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="NFLX" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="NFLX" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> as its new CFO.</p><p class='black-text'>The news came mere hours after Neumann was fired from Activision Blizzard. Neumann was fired from Activision not due to weak performance, but because he violated a <a href="https://www.bloomberg.com/news/articles/2019-01-02/netflix-s-new-cfo-had-contract-barring-him-from-job-shopping">provision in his employment contract that prevented him from seeking other jobs. </a>Specifically, this was the "covenant not to shop" for other jobs before only six months of the contract were left.</p><p class='black-text'>Replacing David Wells, Neumann has served as CFO of Disney's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DIS"><span style="color:#333">(</span><span style=";">DIS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DIS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DIS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DIS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> theme park division. In 2017, his total compensation was <a href="https://www.bloomberg.com/news/articles/2019-01-02/netflix-s-new-cfo-had-contract-barring-him-from-job-shopping">$9.47 million</a>, including <a href="https://www.bloomberg.com/news/articles/2019-01-02/netflix-s-new-cfo-had-contract-barring-him-from-job-shopping">$2.8 million</a> in options awards and <a href="https://www.bloomberg.com/news/articles/2019-01-02/netflix-s-new-cfo-had-contract-barring-him-from-job-shopping">$4.15 million</a> in stock awards. Neumann earned both his B.A. and MBA degrees from Harvard University. Additionally, Neumann has also worked in private equity at Providence Equity Partners and Summit Partners. This would form an important experiential backbone for working with the fiscal side of the entertainment industry. He also served as executive vice president of ABC Network from 2001 to 2004.</p><p class='black-text'>"Spencer is a stellar entertainment executive and we're thrilled that he will help us provide amazing stories to people all over the world," <a href="https://techcrunch.com/2019/01/02/netflix-hires-activision-cfo-former-disney-exec-spencer-neumann-as-its-new-cfo/">said</a> Netflix CEO Reed Hastings. He also thanked the former CFO, David Wells, who announced in August that he would be leaving to pursue philanthropy. Wells stuck around at Netflix until they were able to find a replacement.</p><p class='black-text'>"Netflix is a singular brand, and I'm excited and honored for the opportunity to work with the Netflix team and all of our stakeholders to build on the company's exceptional track record of success and innovation," <a href="https://www.cnbc.com/2019/01/02/netflix-hires-spencer-neumann--from-activision-blizzard-as-new-cfo.html">said</a> Neumann.</p><p class='black-text'>Disney is also planning to launch a <a href="https://techcrunch.com/2019/01/02/netflix-hires-activision-cfo-former-disney-exec-spencer-neumann-as-its-new-cfo/">platform</a> that rivals Netflix's own next year. Given that Neumann has experience with Disney, the insight he brings to the Netflix team could provide an invaluable competitive advantage to the entertainment giant.</p><p class='black-text'>The move comes as part of Netflix's collective effort to recruit employees from their contemporaries' organizations. Other poached employees include <a href="https://techcrunch.com/2019/01/02/netflix-hires-activision-cfo-former-disney-exec-spencer-neumann-as-its-new-cfo/">ABC's entertainment chief Channing Dungey</a>.</p> http://www.pws.io/netflix-finds-a-new-cfo Fri, 04 Jan 2019 15:10:43 -0500 Tamanna Chhibbar Year in Review 2018 http://www.pws.io/year-in-review-2018 <p class='black-text'>2018 was a truly newsworthy year for the markets. With record highs and lows, US stock markets ultimately marked a loss in total return for the first time since 2008, with the S&P 500 (INX) falling 4.38 percent. Political instability, global growth worries, and the Federal Reserve's rate raising program captured and enthralled investors. As a new year begins, highlights of the world's markets can offer insights for the future.</p><p class='black-text'>The US stock markets began 2018 with a blast thanks to the Republican tax reform law. Then it experienced an unexpected bout of volatility in February, falling to a new low before bouncing back into the summer. The summer rally was undercut by Trump trade wars with China. Concerns about Chinese growth and the Federal Reserve's rate hikes were also stumbling blocks. Still, the markets entered autumn with fresh confidence, and the S&P 500 notched its record high of 2,940.91 on September 21. Volatility returned in the winter, as a potential US-China trade deal failed and Trump began to publicly attack the Federal Reserve for its continued rate hikes. A government shutdown exacerbated the bear market, though stocks managed to escape into just a correction in the last week. Tech, energy, and manufacturing struggled especially, while utilities and consumer staples endured better. <a href="https://www.marketwatch.com/story/dow-industrials-and-sp-500-the-best-and-worst-performing-stocks-of-2018-2018-12-31">The worst performing stocks</a> were Coty, Inc. <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/COTY"><span style="color:#333">(</span><span style=";">COTY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="COTY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="COTY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="COTY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, down 67.3%, Mohawk Industries <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MHK"><span style="color:#333">(</span><span style=";">MHK</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MHK" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MHK" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MHK" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, down 57.2%, and General Electric <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/GE"><span style="color:#333">(</span><span style=";">GE</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="GE" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="GE" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="GE" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, down 57.1%. The best performers were AMD <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AMD"><span style="color:#333">(</span><span style=";">AMD</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AMD" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AMD" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AMD" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, up 79.8%, Keurig Dr. Pepper <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/KDP"><span style="color:#333">(</span><span style=";">KDP</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="KDP" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="KDP" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="KDP" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, up 61.6%, and Advance Auto Parts <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AAP"><span style="color:#333">(</span><span style=";">AAP</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AAP" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AAP" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AAP" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, up 56.5%.</p><p class='black-text'><a href="https://www.cnbc.com/2019/01/03/global-stock-markets-here-are-the-best-and-worst-performers-in-2018-.html">Global stock markets</a> also made moves in 2018. With China making up such a large part of emerging markets, some investors looked elsewhere for outsized returns. China was one of the worst performers, as the Shanghai Composite fell 28.64%. Venezuela, Argentina, and Turkey fared worse, falling 94.89%, 50.2%, and 43.35%, respectively. Ukraine topped the list at a whopping 80.39% return, followed by Macedonia at 30.41% and Qatar at 20.87%. Funds and individuals who discovered these diamonds in the rough are happy with their diversification.</p><p class='black-text'><a href="https://en.wikipedia.org/wiki/2018_cryptocurrency_crash">Cryptocurrency </a>was the worst performing market of 2018, collapsing some 85% in the last year, thanks to hacks, crowdsale regulations, and a major fork. Bitcoin (BTC) fell by 75%, and Ethereum (ETH) by 84%. <a href="https://sludgefeed.com/ten-best-and-worst-cryptocurrencies-of-2018/">The best performers </a>were exchange tokens Huobi Token (HT) and Binance Coin (BNB), down 26.32% and 27.05%. For American investors, cash was the best performing market of 2018, thanks to higher short-term interest rates and a lack of volatility. Investors could be wise to conduct due diligence on speculative assets like cryptocurrency and park some cash on the side to weather bear markets and buy at firesale prices.</p><p class='black-text'><i>The author owns a small long position in the S&P 500 (INX) and a small amount of BTC.</i></p> http://www.pws.io/year-in-review-2018 Fri, 04 Jan 2019 15:01:21 -0500 Eric Yao Apple News Continues to Cause Investor Concern http://www.pws.io/apple-news-continues-to-cause-investor-concern <p class='black-text'>The markets sold off hard today as news late yesterday from Apple had investors more fearful of a global slowdown. Weak manufacturing numbers added to the concern. The Dow 30 was lower on the day by 660, the S&P 500 closed lower by 62, and the Nasdaq 100 sold off 202.</p><p class='black-text'>Sector News</p><p class='black-text'>Transports were lower on the day thanks in part to disappointing guidance from Delta Airlines, which underperformed for December despite the uptick in travel the holiday season usually entails. The sector is lower by over 13% in the last year.</p><p class='black-text'>Biotech was higher on buyout news from BMY. Investors cheered the idea of more mergers in the space throughout 2019.</p><p class='black-text'>Stock News</p><p class='black-text'>Apple <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AAPL"><span style="color:#333">(</span><span style=";">AAPL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AAPL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AAPL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AAPL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> was the dominant headline today as the company announced lower guidance for the first time since 2002. The company said that slower sales in China along with escalating trade war issues are to blame for lower revenue, EPS, and profit margins than Wall Street expectations. The stock fell to new 52-week lows on the news, pulling down all the major indices.</p><p class='black-text'>The news also sent a shudder through their suppliers like Cirrus Logic <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/CRUS"><span style="color:#333">(</span><span style=";">CRUS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="CRUS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="CRUS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="CRUS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, which nearly fell to 52-week lows along with Skyworks <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SWKS"><span style="color:#333">(</span><span style=";">SWKS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SWKS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SWKS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SWKS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, Broadcom <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AVGO"><span style="color:#333">(</span><span style=";">AVGO</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AVGO" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AVGO" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AVGO" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, Taiwan Semiconductor <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TSM"><span style="color:#333">(</span><span style=";">TSM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TSM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TSM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TSM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, Lumentum Holdings <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/LITE"><span style="color:#333">(</span><span style=";">LITE</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="LITE" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="LITE" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="LITE" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, and Synaptics, Inc. <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SYNA"><span style="color:#333">(</span><span style=";">SYNA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SYNA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SYNA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SYNA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>.</p><p class='black-text'>Celgene <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/CELG"><span style="color:#333">(</span><span style=";">CELG</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="CELG" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="CELG" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="CELG" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> was a big headline in the M&A space, as the company announced that they would be acquired by Bristol Myers <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/BMY"><span style="color:#333">(</span><span style=";">BMY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="BMY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="BMY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="BMY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>. The company will pay $74 billion in cash and stock, which equates to 1 share of BMY and $50 cash for each share of Celgene owned.</p><p class='black-text'>Gilead <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/GILD"><span style="color:#333">(</span><span style=";">GILD</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="GILD" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="GILD" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="GILD" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were higher by about 5% as Oppenheimer called it the cheapest large-cap biotech.</p><p class='black-text'>Delta <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DAL"><span style="color:#333">(</span><span style=";">DAL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DAL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DAL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DAL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares plummeted to new 52-week lows today following disappointing guidance and December performance metrics.</p> http://www.pws.io/apple-news-continues-to-cause-investor-concern Thu, 03 Jan 2019 20:08:39 -0500 Dustin Tibbitts Stock Market Opens 2019 With Continued Volatility http://www.pws.io/stock-market-opens-2019-with-continued-volatility <p class='black-text'>The markets kicked off the New Yeae with more wild trading in a larger range. Ultimately the Dow 30 added 18, the S&P 500 closed up 3, and the Nasdaq 100 added 30, the biggest gainer of the day. Attention will now turn towards earnings, the Fed, and the trade war progress. There may even be some volatility created by a split Congress as well.</p><p class='black-text'>Sector News</p><p class='black-text'>Oil was a big mover today as it rocketed off its lows this morning, producing almost a 7% rally in less than 90 minutes. The price of oil remains near 52-week lows and in a steep downtrend. Energy-related areas of the markets also enjoyed a healthy bounce off lows.</p><p class='black-text'>Retail was another strong area of the markets today and has now bounced about 9% off the lows set just six trading days ago.</p><p class='black-text'>Stock News</p><p class='black-text'>Tesla <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TSLA"><span style="color:#333">(</span><span style=";">TSLA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TSLA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TSLA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TSLA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> - shares sold off today on news that the company delivered fewer Model 3s than expected. In addition, the company was reported to have over 3000 vehicles in inventory and was cutting prices.</p><p class='black-text'>Roku <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/ROKU"><span style="color:#333">(</span><span style=";">ROKU</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="ROKU" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="ROKU" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="ROKU" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> - shares were higher today as the company announced a new premium streaming service which has a similar structure to Apple's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AAPL"><span style="color:#333">(</span><span style=";">AAPL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AAPL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AAPL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AAPL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>. Shares remain near 52-week lows.</p><p class='black-text'>Wells Fargo <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/WFC"><span style="color:#333">(</span><span style=";">WFC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="WFC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="WFC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="WFC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were higher on an upgrade today by RBC, which said that the recent sell off makes it an attractive valuation.</p><p class='black-text'>Activision Blizzard <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/ATVI"><span style="color:#333">(</span><span style=";">ATVI</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="ATVI" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="ATVI" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="ATVI" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were slightly higher on the day as the company announced the were firing their CFO. It seems he was shopping for a new role as CFO at Netflix <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/NFLX"><span style="color:#333">(</span><span style=";">NFLX</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="NFLX" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="NFLX" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="NFLX" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and his boss found out.</p><p class='black-text'>MedEquities Realty Trust <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MRT"><span style="color:#333">(</span><span style=";">MRT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MRT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MRT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MRT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares soared on a deal to be acquired by Omega Healthcare <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/OHI"><span style="color:#333">(</span><span style=";">OHI</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="OHI" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="OHI" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="OHI" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> for $600 million in cash and stock.</p> http://www.pws.io/stock-market-opens-2019-with-continued-volatility Wed, 02 Jan 2019 17:11:28 -0500 Dustin Tibbitts Where to Invest for 2019 http://www.pws.io/where-to-invest-for-2019 <p class='black-text'>The final stretch of 2018 was a rough, and many investors are still making sense of their current investments. Once you work through your current holdings for the positions you feel have "made the cut," it's time to ask the question: where should you invest for 2019?</p><p class='black-text'>First, consider the type of investor you are. Do you like to buy countertrend plays in sectors or on stocks that have fallen sharply? You may be the type of investor that likes to buy only strong stocks in strong sectors that are possibly already in an uptrend. No matter your style, we'll dissect the current market so you might find your picks for 2019.</p><p class='black-text'>If you like buying the dips, you'll certainly want to look at the technology sector. The technology sector was by far the weakest for 2018, with losses nearing 30%. Small- to mid-cap tech stocks have been the most vulnerable area of the sector, as about 50% of sector losses come from those names. Drilling down a little more, you'll see that software stocks that were hit the most. Semiconductors are also trading at a recent discount, as they spent this year trying to analyze the impacts of tariffs and potential oversupply. While many think the supply issues are already priced into the semiconductors, a resolution to the trade war with China could help pull these stocks off their bottoms in 2019.</p><p class='black-text'>If catching a falling steak knife is not your style, then maybe you'd like stronger areas for your 2019 picks. Healthcare stocks would be the place to focus. As of the new year, healthcare is clinging to 2018's small overall gain. Many feel that with divided control of Congress, there will be little in the way of actual health care reform, leaving room for this sector to continue to grow. In addition, the recent selloff leaves many of these names in a position to buy the dip on a relative strength basis. Biotech and the healthcare plan subsectors have been relatively strong areas lately.</p><p class='black-text'>No matter your investment style, there's no doubt that the end-of -year selloff has created plenty of opportunities for discount investors - but strength investors also have a chance to build a portfolio of their best picks for 2019. Happy New Year!</p> http://www.pws.io/where-to-invest-for-2019 Wed, 02 Jan 2019 16:02:59 -0500 Dustin Tibbitts Sears CEO Makes Last-Minute Bid to Save Sears From Liquidation http://www.pws.io/sears-ceo-makes-last-minute-bid-to-save-sears-from-liquidation <p class='black-text'>On Thursday, December 27, 2018, the storied 125-year-old American retailer Sears faced a fork in the road. Chairman Eddie Lampert put forth a $4.6 billion proposal for a buy-out to save Sears from bankruptcy, funded by his personal hedge fund, <a href="https://www.cnbc.com/2018/12/27/sears-may-need-to-liquidate-if-no-bid-comes-in-by-tomorrow.html">ESL Investments</a>. ESL was the lone bidder with the capacity to preserve the company in its entirety, and Sears's only hope to survive intact. The alternative would have been to split the company into multiple pieces by liquidators. The brands and intellectual property aggregated under Sears retains value and will sell for money, even after liquidation. Sears has also announced that it will close an<a href="https://www.marketwatch.com/story/heres-a-list-of-the-80-new-store-closures-sears-has-announced-2018-12-28"> additional 80 stores</a> by March of 2019.</p><p class='black-text'>Before this current moment in the Sears drama, the Sears-Kmart duo - with Sears Holdings Corporation <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SHLDQ"><span style="color:#333">(</span><span style=";">SHLDQ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SHLDQ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SHLDQ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SHLDQ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>as the parent company of both chains - saw many more store closings, leaving a headcount of approximately <a href="https://www.forbes.com/sites/warrenshoulberg/2018/12/30/as-the-sears-turns/#41b2ed8e77ec">400 stores nationwide</a>. It had roughly 3000 stores during its heyday, after the merger of Sears and <a href="https://www.forbes.com/sites/warrenshoulberg/2018/12/30/as-the-sears-turns/#41b2ed8e77ec">Kmart in the early 2000's</a>.</p><p class='black-text'>As of December 30, 2018, Lampert's bid still stands alone. It is still pending approval from the Sears Holdings' board, which it hopes to receive come January 2019 -- although <a href="https://www.forbes.com/sites/lauraheller/2018/12/29/sears-survives-into-the-new-year-with-last-minute-4-6b-bid/#fddde7aaf36f">rejection is also a possibility</a>. The company had filed for bankruptcy on <a href="https://www.forbes.com/sites/lauraheller/2018/12/29/sears-survives-into-the-new-year-with-last-minute-4-6b-bid/#fddde7aaf36f">October 15, 2018</a>.</p><p class='black-text'>Lampert claims that if it is accepted, the bid will protect 50,000 of the 68,000 total jobs in Sears, although the technical details of this feature of the bid are still unknown. The average employee headcount at a Sears store is approximately <a href="https://www.forbes.com/sites/warrenshoulberg/2018/12/30/as-the-sears-turns/#41b2ed8e77ec">a dozen or so workers</a>. On the opposite end of the company spectrum is the clear news of the guaranteed executive bonuses, amounting to approximately $442,000 on average per executive. Ironically, these bonuses will be going to the set of individuals under whose leadership Sears amassed $2 billion in <a href="https://www.forbes.com/sites/warrenshoulberg/2018/12/30/as-the-sears-turns/#41b2ed8e77ec">losses in the past year</a>. Furthermore, the company is offering another $17 million in retention bonuses for the 315 <a href="https://www.forbes.com/sites/warrenshoulberg/2018/12/30/as-the-sears-turns/#41b2ed8e77ec">members of management to stay</a>. This is true now, in spite of the fact that the members of management who left in previous stages of the company's downturn were compensated with far less.</p><p class='black-text'>Informed observers of the Sears downturn can generally agree on one thing: the bid will likely be unsuccessful, and this once-iconic American company's run will soon come to an end.</p> http://www.pws.io/sears-ceo-makes-last-minute-bid-to-save-sears-from-liquidation Mon, 31 Dec 2018 17:07:20 -0500 Marisa Liu Trouble for Nissan in Tokyo http://www.pws.io/trouble-for-nissan-in-tokyo <p class='black-text'>The past few months hav been rough for Nissan <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/NSANY"><span style="color:#333">(</span><span style=";">NSANY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="NSANY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="NSANY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="NSANY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> since former Chairman Carlos Ghosn's arrest in Japan on November 19 for <a href="https://en.wikipedia.org/wiki/Carlos_Ghosn#Arrest_in_Tokyo">underreporting </a>his income from Nissan. The discrepancy in accounting caused Ghosn to be <a href="https://en.wikipedia.org/wiki/Carlos_Ghosn#Arrest_in_Tokyo">removed from Nissan's board</a> and the loss of his executive rights. Director Greg Kelly has also faced similar accusations. Ghosn, a French citizen who arrived to Nissan after a strategic partnership was formed with France-based automaker Renault <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/RNLSY"><span style="color:#333">(</span><span style=";">RNLSY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="RNLSY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="RNLSY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="RNLSY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> in 1999. Ghosn funneled company funds through a shell company called <a href="https://en.wikipedia.org/wiki/Carlos_Ghosn#Arrest_in_Tokyo">Zi-A Capital BV,</a> using them on personal assets such as beachfront apartments and mansions. Additionally, Kelly assisted Ghosn structure certain deferred payment plans that exploited loopholes in the disclosure rules, resulting in the siphoning of around <a href="https://en.wikipedia.org/wiki/Carlos_Ghosn#Arrest_in_Tokyo">$80 million.</a></p><p class='black-text'>Now, other incriminating information has come to light regarding Khaled Al-Juffali, a Saudi businessman who <a href="https://www.cnbc.com/2018/12/26/new-allegations-against-ghosn-concern-payments-to-saudi-businessman.html">helped Ghosn with his financial troubles.</a> In 2008, Ghosn attempted to mitigate personal losses from bad investments of about <a href="https://www.cnbc.com/2018/12/26/new-allegations-against-ghosn-concern-payments-to-saudi-businessman.html">$16.6 million</a> by having Al-Juffali arrange for a letter of credit to siphon <a href="https://www.cnbc.com/2018/12/26/new-allegations-against-ghosn-concern-payments-to-saudi-businessman.html">$14.7 million</a> from Nissan's account, over a period of 4 years. "By doing so, [Ghosn] behaved in a way that breached trust, and inflicted damage on the property of Nissan," <a href="https://www.cnbc.com/2018/12/26/new-allegations-against-ghosn-concern-payments-to-saudi-businessman.html">said</a> Tokyo prosecutors.</p><p class='black-text'>Reacting to allegations, a Nissan spokesman <a href="https://www.cnbc.com/2018/12/26/new-allegations-against-ghosn-concern-payments-to-saudi-businessman.html">said</a>: "We cannot comment on matters related to Ghosn's arrest for breach of trust. Nissan's own investigation is ongoing, and its scope continues to broaden."</p><p class='black-text'>In order to ameliorate the situation and assuage shareholders representing Renault, which is the largest shareholder in Nissan, Nissan <a href="https://www.bloomberg.com/news/articles/2018-12-25/nissan-revises-cross-shrholding-policy-in-corp-governance-code">updated its corporate governance code</a> to reflect more desirable changes in light of Ghosn's arrest. The main policy change pertained to cross-shareholder clauses, which were clarified and made more explicit for both automakers: "We will investigate including the option of sale of the shares when continued possession of the shares is judged to be inappropriate as a result of verification of the propriety of such cross-shareholdings," the code also <a href="https://www.bloomberg.com/news/articles/2018-12-25/nissan-revises-cross-shrholding-policy-in-corp-governance-code">said</a>.</p><p class='black-text'>"The policy itself has not changed in any way, and the clarification does not refer to alliance partners, but rather to the company's holdings in certain other listed companies," Nissan <a href="https://www.bloomberg.com/news/articles/2018-12-25/nissan-revises-cross-shrholding-policy-in-corp-governance-code">said</a> in a written statement. "Nissan is one of hundreds of listed companies in Japan issuing an update at this time in this manner."</p><p class='black-text'>The clarification has consoled investors to an extent, as the Nissan stock rose by almost <a href="https://www.bloomberg.com/news/articles/2018-12-25/nissan-revises-cross-shrholding-policy-in-corp-governance-code">3.5%</a> upon the announcement in Tokyo. It seems as though the Renault-Nissan-Mitsubishi Alliance will not be completely uprooted by the allegations, as Nissan management continues to adjust legal stipulations to allay Renault's concerns. Even so, the uneven corporate structure of the partnership between Renault and Nissan could be a point of tension in the future, especially since France has voting rights for Renault but the opposite is not true. Prosecutors are continuing investigations against Ghosn.</p> http://www.pws.io/trouble-for-nissan-in-tokyo Mon, 31 Dec 2018 17:02:45 -0500 Tamanna Chhibbar Tesla Stock Falls After Cutting Prices in China, Revealing Model 3 Inventory Issues http://www.pws.io/tesla-stock-falls-after-cutting-prices-in-china-revealing-model-3-inventory-issues <p class='black-text'>Tesla's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TSLA"><span style="color:#333">(</span><span style=";">TSLA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TSLA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TSLA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TSLA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> stock fell by a hefty <a href="https://www.cnbc.com/2018/12/24/tesla-cut-prices-in-china-and-will-pay-for-missed-tax-credit.html">7.6% </a>last Monday after price cuts ensued in China to compensate for dissatisfied consumers that were inconvenienced due to Tesla's slow production. The delays caused customers to miss important tax credit deadlines that would result in losing out on up to<a href="https://techcrunch.com/2018/12/24/tesla-shares-fall-7-6-following-price-cuts-in-china-and-elon-musks-promise-to-reimburse-missed-tax-credits/"> $7500 </a>in tax credit.</p><p class='black-text'>The Model 3 starting price has now dropped to <a href="https://www.reuters.com/article/us-china-autos-tesla/tesla-cuts-model-3-prices-in-china-idUSKCN1OM0FU">$72,000</a> as a result.</p><p class='black-text'>In response to complaints on Twitter, Musk said: Musk <a href="https://www.cnbc.com/2018/12/24/tesla-cut-prices-in-china-and-will-pay-for-missed-tax-credit.html">tweeted</a>, "If Tesla committed delivery & customer made good faith efforts to receive before year end, Tesla will cover the tax credit difference."</p><p class='black-text'>This is not the first time Tesla has had to adjust prices due to production delays. In fact, the same phenomenon has occurred twice in China in the past two months. Tesla said it was "absorbing a significant part of the tariff to help make cars more affordable for customers in China," after it cut prices by <a href="https://www.cnbc.com/2018/12/24/tesla-cut-prices-in-china-and-will-pay-for-missed-tax-credit.html">12 to 26%</a> for the Model X and Model S cars respectively that month. The reason it did this was because China temporarily suspended a <a href="https://techcrunch.com/2018/12/24/tesla-shares-fall-7-6-following-price-cuts-in-china-and-elon-musks-promise-to-reimburse-missed-tax-credits/">25% tariff </a>on American vehicles.</p><p class='black-text'>Tesla is no stranger to production and project delays, owing to Musk's tendency to set the bar extremely high for deadline targets and expectations.</p><p class='black-text'>Recently, as a result of frustration with LA traffic, Musk launched the Boring Company to revolutionize tunnel digging and traffic logistics. However, a recent product launch that was supposed to happen on December <a href="https://www.gearbrain.com/boring-company-opening-event-2622660081.html">10 was shifted to December 18,</a> testament to Tesla's inability to effectively schedule its demonstrations in tune with performance capacity.</p><p class='black-text'>Reacting to outcry regarding the delay, Musk <a href="https://www.gearbrain.com/boring-company-opening-event-2622660081.html">said</a>: "Boring Company product launch Dec.18. More than a tunnel opening, Will include modded but fully road legal autonomous transport cars & ground to tunnel car elevators."</p><p class='black-text'>It is unclear whether Tesla's production inefficiencies are the result of Musks' often questionable leadership or operational issues. However, Tesla was finally able to deliver on Model 3 orders in the latter half of 2018, delivering a total of <a href="https://techcrunch.com/2018/12/24/tesla-shares-fall-7-6-following-price-cuts-in-china-and-elon-musks-promise-to-reimburse-missed-tax-credits/">83,500 vehicles, including 55,840 Model 3 units.</a> Still, Tesla stock was down 2% on Monday after a report indicated that 3,000 of these vehicles were still in inventory. Tesla had initially promised to go through the entire inventory before the end of the year, but <a href="https://www.cnbc.com/2018/12/31/tesla-reportedly-has-over-3000-model-3-vehicles-left-in-us-inventory.html">wasn't able to do so</a>.</p><p class='black-text'>What remains to be seen is if Musk is able to recognize when to set the bar high and when to keep expectations low, in order to avoid production errors and fiscal losses as a result.</p> http://www.pws.io/tesla-stock-falls-after-cutting-prices-in-china-revealing-model-3-inventory-issues Mon, 31 Dec 2018 16:46:37 -0500 Tamanna Chhibbar Cryptocurrency Week of December 30 in Review http://www.pws.io/cryptocurrency-week-of-december-30-in-review <p class='black-text'>The last week of December has been exciting for the cryptocurrency markets. Perhaps the biggest news is that <a href="http://time.com/5486673/bitcoin-venezuela-authoritarian/">TIME Magazine</a> published a story titled "Why Bitcoin Matters for Freedom." Author Alex Gladstein, Chief Strategy Officer at the Human Rights Foundation, argues that Bitcoin (BTC) and other cryptocurrencies contribute to global freedom for people who live under authoritarian regimes. Gladstein points to Venezuelans, who don't have fair elections or stable prices. They use BTC for remittances, a hedge to inflation, and savings accounts. People in China can escape the mass surveillance on Alipay and WeChat by using crypto. Gladstein also praises privacy blockchains Zcash (ZEC) and Monero (XMR) as well as encrypted communication apps. Finally, he praises cash for its anonymity. In a year with so much bad press for crypto, the TIME article is a refreshing breath of optimism based on utility.</p><p class='black-text'>Here is the rest of the week in review:</p><p class='black-text'><a href="https://www.coindesk.com/former-mt-gox-ceo-mark-karpeles-claims-innocence-as-trial-nears-end">Mt. Gox CEO Mark Karpeles</a> made his closing arguments in a Japanese court as his embezzlement trail came to an end. Karpeles was the overseer of a 2014 collapse in which Bitcoin exchange Mt. Gox went bankrupt and lost millions in BTC customer funds. He faces charges of embezzling over $3 million and fraudulently manipulating exchange data. Karpeles pled not guilty to all charges, but he apologized on Thursday for failing to protect users from being hacked. Prosecutors allege that Karpeles embezzled funds to invest in a software development venture, while the defense argues that the transfer was normal exchange business. Karpeles could receive 10 years in prison. The court will deliver its verdict on March 15, 2019.</p><p class='black-text'><a href="https://cointelegraph.com/news/japanese-giant-mizuho-financial-group-to-introduce-digital-currency-for-cashless-payments">Mizuho Bank</a> announced plans to launch a digital currency on Wednesday. The Japanese financial giant wants to create a digital currency that people can use for remittances and payments in March. According to reports by Nikkei, retailers and merchants will pay a fee to accept the currency that is lower than credit card fees. Mizuho, Japan's second largest bank with 2017 revenue of $13 billion, has already convinced 60 regional banks to promote the digital currency. Other regional banks will be able to provide the currency as a service. Mizuho plans for the currency to be managed by a smartphone app, and users can make payments with QR codes. The digital currency will be a stablecoin pegged at a price of 1 yen per unit.</p><p class='black-text'>Crypto prices traded within a stable range this week, falling and then rebounding into the weekend. Current market capitalization stands at $130 billion, and BTC trades around $3,800. In the top 100, the biggest losers are Emercoin (EMC), down 25%, Ontology (ONT), down 19%, and Bitcoin Cash (BCH), down 19%. The biggest gainers are PIVX (PIVX), up 22%, Boolberry (BBR), up 20%, and PRIZM (PZM), up 16%. Investors hope the new year will bring a new bull market.</p><p class='black-text'><i>The author owns a small amount of BTC.</i></p> http://www.pws.io/cryptocurrency-week-of-december-30-in-review Sun, 30 Dec 2018 23:05:25 -0500 Eric Yao US Markets Gain on Holiday Weekend Thanks to Pension Funds http://www.pws.io/us-markets-gain-on-holiday-weekend-thanks-to-pension-funds <p class='black-text'>After the Christmas Eve bloodbath and Christmas Day holiday, the <a href="https://www.marketwatch.com/story/heres-just-how-crazy-this-week-was-for-the-stock-market-in-one-big-chart-2018-12-28">US stock markets</a> finally recovered with a brief but big move upward last week. On Wednesday, the Dow Jones Industrial Average (DJI) notched a 1,086.25 point gain, the biggest point gain in history, to end 5% up, soothing doubts of a prolonged bear market. On Thursday, volatility reared back, and the S&P 500 (INX) opened sharply lower before reversing to close 0.86% higher. And on Friday, in another wild trading session, the S&P 500 ended flat, down 0.12%, after intense selling in the last hour. Overall, the stock markets finished the week solidly in the green, with the three major indices rising more than 2.75% and pulling out of the bear market. However, stocks are still down nearly 10% for the month, meaning it could still be the worst December performance since 1931.</p><p class='black-text'>The <a href="https://www.marketwatch.com/story/treasury-yields-stay-higher-as-investors-shift-back-into-stocks-in-week-of-turmoil-2018-12-28">American bond markets</a> also performed relatively well during the volatile month. The yield on the 2-year Treasury note fell 1.4 basis points to 2.534%, thanks to investors buying Treasury notes in a flight from equities to safety. The 10-year Treasury note yield was unchanged at 2.74%, and the 30-year Treasury bond rose 1.8 basis points to 3.048%, likely as investors shied away from Federal Reserve interest rate risk. Because bond yields move inversely with bond prices, bond holders gain price increases when yields decrease. The 2-year Treasury note moved the most since the week of November 16, its yield falling to a six-month low. It seems that the government shutdown and upcoming gridlock in Congress have not yet affected investors' sentiment on bonds as safe haven assets.</p><p class='black-text'>Although nobody knows for sure, a <a href="https://www.marketwatch.com/story/why-pension-funds-may-be-driving-the-stock-markets-post-christmas-bounce-2018-12-28">theory </a>has been proposed to explain the surge in equities this week: pension funds are buying before the year ends. According to Wells Fargo <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/WFC"><span style="color:#333">(</span><span style=";">WFC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="WFC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="WFC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="WFC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> analysts, pension funds need to buy $64 billion worth of shares in December thanks to the end-of-the-quarter period. They usually rebalance their holdings at the end of each quarter, selling winners and buying losers. That means pension funds are selling bonds and buying stocks. The $64 billion figure is historically large, likely because market liquidity is relatively low over the holiday period. Pension funds usually execute buy orders near the end of trading days, which could explain the recent big reversals. The <a href="https://finance.yahoo.com/news/one-theory-giant-stock-rebound-155005463.html">pension fund managers</a> are betting big on US stock indices, having invested $35 billion in large caps and $21 billion in small caps this quarter. With one more trading day until 2019, traders and investors will look to see if pension funds continue buying stocks and supporting the US stock markets.</p><p class='black-text'><i>The author owns a small long position in the S&P 500 (INX).</i></p> http://www.pws.io/us-markets-gain-on-holiday-weekend-thanks-to-pension-funds Sun, 30 Dec 2018 23:01:51 -0500 Eric Yao Trump Weekly: Government Shutdown, Mueller Investigation, Military, and More http://www.pws.io/trump-weekly-government-shutdown-mueller-investigation-military-and-more <p class='black-text'>The US government shutdown that began about a week ago is continuing with no end in sight. Funding for several key wings of the government lapsed on December 21, 2018, thanks to a political impasse over a spending bill. Congressional Democrats are refusing to pass a spending bill that includes the $5.7 billion Trump seeks to build a wall at the border between the US and Mexico. Congressional Republicans, who will have bicameral control of US legislature until the New Year, lack the votes needed to bypass the Democrats. Democrats will assume House majority in January 2019, but even then, Trump has vowed to veto any bill that does not include the border wall funds he seeks. Although the Trump White House once appeared to waver on its commitment to the border wall fight, Trump is now doubling down on his anti-immigrant rhetoric. He has threatened to close the "<a href="https://www.nytimes.com/2018/12/27/us/politics/government-shutdown-trump-democrats.html">entire border</a>" and to withdraw aid to El Salvador, Honduras, and Guatemala until he gets his way. Hundreds of thousands of federal employees are thus unable to work or be paid until a spending bill is passed. Adding insult to injury, on Saturday Trump signed an <a href="https://www.cnn.com/2018/12/29/politics/trump-executive-order-federal-workers-pay-freeze/index.html">executive order freezing pay</a> for federal workers in 2019.</p><p class='black-text'>Meanwhile, the Mueller investigation drama carries on. On Thursday, Trump attorney Rudy Giuliani <a href="https://www.businessinsider.com/rudy-giuliani-shifts-answers-on-another-trump-mueller-interview-2018-12">flip-flopped on the question</a> of whether Trump might concede to an in-person interview with Mueller; at first he said it was possible, but later he said there was no possibility of such a meeting. Evidence emerged that Michael Cohen, Trump's former attorney, flew to <a href="https://www.politico.com/story/2018/12/27/michael-cohen-prague-steele-dossier-1076467">Prague in 2016</a> to meet with Kremlin officials and discuss Trump's collusion with Russia. Cohen continues to deny that he ever participated in such a meeting. A court filing in the case against the Internet Research Agency, the Russian group indicted for election interference, revealed that there is a salacious "<a href="https://www.huffingtonpost.com/entry/nude-selfie-russian-organization-robert-mueller-investigation_us_5c256ad9e4b08aaf7a8edcaf">nude selfie</a>" amongst the evidence against them. Lastly, White House lawyers have argued that the <a href="https://www.politico.com/story/2018/12/26/trump-lawyers-shutdown-delay-emoluments-case-1075676">emoluments case against Trump should be postponed</a> until post-government shutdown.</p><p class='black-text'>Trump took a victory lap through American military members stationed abroad this week to celebrate his <a href="https://www.cnn.com/2018/12/29/politics/trump-administration-us-troop-withdrawal-plan-syria/index.html">controversial decision to pull troops from Syria</a>. While there, he managed to mislead US soldiers, claiming that he had authorized a 10% pay increase for them in 2019, when in fact he had only authorized a 2.6% pay increase. This pay bump isn't even especially noteworthy; the military has received pay increases between 1% and 3.9% every year for the past decade. Trump's Twitter also landed him in hot water yet again, as he managed to <a href="https://www.nbcnews.com/politics/donald-trump/trump-s-reveal-seal-team-iraq-could-endanger-its-members-n952521">violate protocol by inadvertently revealing</a> the identities and location of a covert Navy Seals Op in a video posted to his feed.</p><p class='black-text'>Meanwhile, the Trump administration furthered its mission of environmental deregulation and propping up the ailing coal industry. Earlier this week, the EPA proposed that it may relax regulations on emissions of mercury and other pollutants from coal-burning plants, despite the known impacts of these substances on human health.</p> http://www.pws.io/trump-weekly-government-shutdown-mueller-investigation-military-and-more Sat, 29 Dec 2018 10:59:35 -0500 Ariel Courage The Salesforce Success Story: The Genius Behind the Cloud http://www.pws.io/the-salesforce-success-story-the-genius-behind-the-cloud <p class='black-text'>Salesforce <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/CRM"><span style="color:#333">(</span><span style=";">CRM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="CRM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="CRM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="CRM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> has effectively established itself as the leading cloud-based customer relationship management system.</p><p class='black-text'><a href="https://www.thestreet.com/technology/what-is-salesforce-14796378"> Founded in 1999 </a>by Marc Benioff, Dave Moellenhoff, Frank Dominguez, and Parker Harris, the company has earned almost <a href="https://techcrunch.com/2018/12/24/salesforce-keeps-rolling-with-another-banner-year-in-2018/">$20 billion</a> in revenue so far. Their goal is to make <a href="https://techcrunch.com/2018/12/24/salesforce-keeps-rolling-with-another-banner-year-in-2018/">$60 billion</a> by 2034. Last year alone, the SaaS giant had <a href="https://www.thestreet.com/technology/what-is-salesforce-14796378">150,000 companies</a> on its consumer roster, the likes of which include Amazon <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AMZN"><span style="color:#333">(</span><span style=";">AMZN</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AMZN" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AMZN" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AMZN" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and American Express <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AXP"><span style="color:#333">(</span><span style=";">AXP</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AXP" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AXP" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AXP" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>. According to the Salesforce website, Salesforce produces the <a href="https://www.thestreet.com/technology/what-is-salesforce-14796378">following results</a>: "an average 27% increase in sales revenues, 32% increase in lead conversion, 34% increase in customer satisfaction and a 56% faster deployment" for companies that use the service.</p><p class='black-text'>Salesforce is able to achieve such stellar numbers because it invests heavily in the right areas. For instance, Salesforce bought software company<a href="https://techcrunch.com/2018/12/24/salesforce-keeps-rolling-with-another-banner-year-in-2018/"> Mulesoft in March in order to bridge the gap</a> between private data and cloud data, improving its service whilst ensuring expansion. It also bought <a href="https://techcrunch.com/2018/12/24/salesforce-keeps-rolling-with-another-banner-year-in-2018/">Datorama</a> in July, subsequently revamping its market intelligence department. Salesforce has also catered to large companies with deep pockets as opposed to smaller companies, and benefits from the fact that once companies adopt their service, it's difficult to switch to a different one. They've also drummed up international interest via their annual Dreamforce conference, as well as traveling tours and events. Salesforce also <a href="https://www.economist.com/business/2018/01/04/masterful-salesmanship-has-pushed-salesforce-to-ever-greater-heights">aggressively markets</a> itself, placing a heavy focus on training and rewarding its sales staff.</p><p class='black-text'>Salesforce is not without rivals. One of Salesforce's main competitors is Pipedrive, a private sales CRM that has acquired<a href="http://www.helsinkitimes.fi/business/16071-salesforce-gets-serious-competition-from-pipedrive.html"> $80 million in funding. </a>It is considered to be more <a href="http://www.helsinkitimes.fi/business/16071-salesforce-gets-serious-competition-from-pipedrive.html">activity-based</a> than Salesforce, and has an interface that offers enhanced visual appeal.</p><p class='black-text'>Writer Maria Timko of HT <a href="http://www.helsinkitimes.fi/business/16071-salesforce-gets-serious-competition-from-pipedrive.html">says</a>: "In using Pipedrive, it is clear that it is truly a tool designed by salespeople for salespeople. It is a tool that simplifies and organizes sales tasks, making it easier to focus on the selling itself. Because it is an activity-based tool, it keeps you on track of leads by scheduling follow up calls and emails, proposal deadlines and meetings. If you're in the middle of one task, you can schedule another sales activity for a later time so that no activity is forgotten. It is also easy to keep notes for each deal and find them at a later date. This is particularly handy when taking over tasks for a colleague or predecessor."</p><p class='black-text'>Still, Salesforce has a scale that Pipedrive simply doesn't have. It also has a strong sense of corporate responsibility, spending on the homeless as well as other benevolent initiatives. Salesforce CEO Marc Benioff has <a href="https://techcrunch.com/2018/12/24/salesforce-keeps-rolling-with-another-banner-year-in-2018/">said</a>: "You've got to really be mindful and think about what it is that you want your company to be for and what you're doing with your business and here at Salesforce, that's very important to us."</p> http://www.pws.io/the-salesforce-success-story-the-genius-behind-the-cloud Sat, 29 Dec 2018 09:58:10 -0500 Tamanna Chhibbar Stock Market Continues Strong Rally http://www.pws.io/stock-market-continues-strong-rally <p class='black-text'>The markets pulled back from their highs of yesterday, as is typical after large reversal days but by the afternoon had started a rally that would move the major indices back into the positive. The Dow 30 closed higher on the day by 260, the S&P 500 gained 21, and the Nasdaq 100 closed higher by 25.</p><p class='black-text'>Sector News</p><p class='black-text'>Oil retraced some of its gains yesterday as the commodity still has to deal with oversupply issues. Investors bought oil heavily yesterday and will await the inventory numbers that are due out tomorrow. For now the commodity remains in a well-defined downtrend.</p><p class='black-text'>Retail stocks retreated from their highs as investors saw a complete 180 of sentiment overnight from the consumer. Data came out today that showed consumer sentiment has hit 5-month lows with concerns about the future direction of the economy. Yesterday the consumer was said to be confident and spending record amounts during the holiday season.</p><p class='black-text'>Stock News</p><p class='black-text'>JP Morgan <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/JPM"><span style="color:#333">(</span><span style=";">JPM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="JPM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="JPM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="JPM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> was in the news today as the company is reportedly paying $135 million to the SEC for errors it made in handling foreign shares traded on US markets between 2011 and 2015. Shares of the stock were lower on the day initially by about 2.5%, erasing about half of yesterday's gains, but the late-day market rally helped pull it back into positive.</p><p class='black-text'>Verizon <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/VZ"><span style="color:#333">(</span><span style=";">VZ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="VZ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="VZ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="VZ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Disney <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DIS"><span style="color:#333">(</span><span style=";">DIS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DIS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DIS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DIS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were both in the news today as there was no new contract announcement to continue carrying Disney content on the Verizon Fios platform. The deal is set to expire on December 31st.</p><p class='black-text'>Nvidia <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/NVDA"><span style="color:#333">(</span><span style=";">NVDA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="NVDA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="NVDA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="NVDA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were downgraded by RBC Capital today as the company says that the average sales price has been coming down in the secondary markets. The analyst firm lowered their target from $230 to $200 on these findings, but still says the stock will outperform.</p> http://www.pws.io/stock-market-continues-strong-rally Thu, 27 Dec 2018 18:19:22 -0500 Dustin Tibbitts Automotive Market Faces Roadblock in China http://www.pws.io/automotive-market-faces-roadblock-in-china <p class='black-text'>After Ford <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/F"><span style="color:#333">(</span><span style=";">F</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="F" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="F" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="F" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> sales dropped by <a href="https://seekingalpha.com/news/3417049-ford-china-sales-plummet-55-percent-november">55%</a> in China year-over-year, it's safe to say that automotive makers in general are facing obstacles in the Chinese market.</p><p class='black-text'>With an estimated <a href="https://www.cnbc.com/2018/12/24/why-china-is-getting-tougher-for-ford-gm-and-other-automakers.html">28 million</a> vehicles expected to be sold this year, China is still the world's largest automotive market - but the market has contracted by <a href="https://www.cnbc.com/2018/12/24/why-china-is-getting-tougher-for-ford-gm-and-other-automakers.html">14%</a> since last year</p><p class='black-text'>"This is the first sustained downturn in memory," <a href="https://www.cnbc.com/2018/12/24/why-china-is-getting-tougher-for-ford-gm-and-other-automakers.html">said</a> Michael Dunne of ZoZoGo, an automotive advisory firm. "We would have to go back to the Asian financial crisis in 1998-1999 to see the last time China had flat or down sales for four months or more in a row."</p><p class='black-text'>The primary cause for the market slowdown is that the Chinese government abolished popular but irregular types of lending, including a <a href="https://www.cnbc.com/2018/12/24/why-china-is-getting-tougher-for-ford-gm-and-other-automakers.html">peer-to-peer lending system </a>that allows fluid money lending between upper and middle classes to accelerate growth through microfinancing. Since January of 2018,<a href="https://www.cnbc.com/2018/12/24/why-china-is-getting-tougher-for-ford-gm-and-other-automakers.html"> 25%</a> of these types of transactions have been prevented, so that consumers are unable to scrounge up the capital for an automotive investment.</p><p class='black-text'>Moreover, consumer confidence in China is at an all-time low, thanks to ongoing US-China trade war uncertainty and a slowing economy. This has exacerbated bearish sentiment in the country.</p><p class='black-text'>"When times are good, the Chinese are really bullish and bold. But when times are uncertain, they are exceptionally conservative," <a href="https://www.cnbc.com/2018/12/24/why-china-is-getting-tougher-for-ford-gm-and-other-automakers.html">said</a> Jacob George of J.D. Power Asia Pacific. "They overcompensate when things are uncertain, meaning they hold off on purchases. And it is contagious. Word goes out now is not the good time to buy a car, and it starts circling around. That sounds a lot like the American concept of 'consumer confidence' but there is a special spice to the Chinese mentality that makes it distinct."</p><p class='black-text'>Ford in particular has been performing poorly because it hasn't been innovating at the same pace as some of its competitors, such as GM <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/GM"><span style="color:#333">(</span><span style=";">GM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="GM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="GM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="GM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>. To ameliorate this, Ford plans to introduce <a href="https://www.cnbc.com/2018/12/24/why-china-is-getting-tougher-for-ford-gm-and-other-automakers.html">50 new cars by 2025. </a></p><p class='black-text'>Additionally, Ford Greater China CEO Anning Chen issued a statement <a href="https://seekingalpha.com/news/3417049-ford-china-sales-plummet-55-percent-november">saying</a>: "China is absolutely essential to Ford globally. The management team of Ford China is focusing on our China Turnaround Plan. We are building a robust management team and efficient organizational structure to drive the business forward. To win against the competition in China, we must better understand the Chinese customer, respond to market changes quickly, introduce more products that customers like and want, streamline the organization, improve the capability of our team, speed up decision-making, and strengthen our relationships with dealers."</p><p class='black-text'>There is also the issue of "<a href="https://www.wsj.com/articles/idle-hands-in-china-workshops-as-foreign-car-makers-struggle-with-zombie-factories-11545750002">zombie factories,</a>" or factories that were created as a result of rapid expansion into China initially by automotive companies, but now are either inefficient or unused. These may be disrupting supply by creating costly inefficiencies and stemming innovation. Companies should first work on eradicating such entities before dealing with demand-side factors.</p> http://www.pws.io/automotive-market-faces-roadblock-in-china Wed, 26 Dec 2018 20:50:01 -0500 Tamanna Chhibbar Where is Oil Headed? Russian Minister Predicts Stabilization http://www.pws.io/where-is-oil-headed-russian-minister-predicts-stabilization <p class='black-text'>As oil prices dwindle by more than a <a href="https://www.reuters.com/article/us-oil-opec-russia/russias-energy-minister-sees-oil-prices-stabilizing-in-first-half-2019-idUSKCN1OO0MG">third</a> of what they were in the previous quarter, the oil market has entered extremely bearish waters, even factoring in <a href="https://www.marketwatch.com/story/wti-crude-jumps-in-recovery-session-after-hitting-17-month-low-2018-12-26">today's 8% recovery</a>.</p><p class='black-text'>This has resulted in OPEC's decision to extend supply cuts, which had originally been set at <a href="https://www.reuters.com/article/us-oil-opec-russia/russias-energy-minister-sees-oil-prices-stabilizing-in-first-half-2019-idUSKCN1OO0MG">1.2 million </a>barrels a day. Russian Energy Minister Alexander Novak thinks these cuts will eventually contribute to the stabilization of oil prices early next year.</p><p class='black-text'>"I think that during the first half, due to joint efforts, which were confirmed by the OPEC and non-OPEC countries this December, the situation will be more stable, more balanced," Novak <a href="https://www.reuters.com/article/us-oil-opec-russia/russias-energy-minister-sees-oil-prices-stabilizing-in-first-half-2019-idUSKCN1OO0MG">said</a>.</p><p class='black-text'>There is a <a href="https://oilprice.com/Energy/Crude-Oil/Why-The-Oil-Price-Bear-Market-Persists.html">direct correlation </a>between the price of oil and economic outlook, because oil is so intrinsically linked to demand-side consumption and use in daily life. Thus, if the economy is expected to contract, then it's likely that this will have already been priced in for the 2019 commodity outlook, reaffirming bearish expectations. Given that many analysts expecte to run into a slowdown next year, especially since unemployment is low and the Fed has implemented the rate hike program to stem inflation, it is therefore likely that prices will continue to remain low.</p><p class='black-text'>Still, Suhail al-Mazrouei, UAE's Minister of Energy <a href="https://oilprice.com/Latest-Energy-News/World-News/OPEC-Prepared-To-Call-Extraordinary-Meeting-As-Oil-Falls.html">claims</a> that OPEC will adjust supply as it sees fit in order to ensure the oil market corrects itself: "What if the 1.2 million barrels of cuts are not enough? I am telling you that if it is not, we will meet and see what is enough and we will do it," he said. "The plan [to cut oil production] is well studied but if it does not work, we always have the power in OPEC to call for an extraordinary meeting. If we are required to extend for [another] six months, we will do it...I can assure you an extension will not be a problem."</p><p class='black-text'>The supply-demand discrepancy plaguing the oil market may not be ameliorated so soon, as there is still an oil glut but weak demand. Fundamentals do not change over the short-term, and the cuts will not take effect immediately. The impacts of the cut will only be felt <a href="https://oilprice.com/Energy/Crude-Oil/Why-The-Oil-Price-Bear-Market-Persists.html">months later. </a></p><p class='black-text'>According to writer <a href="https://oilprice.com/Energy/Crude-Oil/Why-The-Oil-Price-Bear-Market-Persists.html">Jill Mislinski, </a>the behavioral economic background for oil price changes are too overwhelming to ignore. She <a href="https://oilprice.com/Energy/Crude-Oil/Why-The-Oil-Price-Bear-Market-Persists.html">says</a>, "There are profound behavioral issues apart from gasoline prices that are influencing miles traveled. These would include the demographics of an aging population in which older people drive less, continuing high unemployment, the ever-growing ability to work remote in the era of the Internet and the use of ever-growing communication technologies as a partial substitute for face-to-face interaction."</p> http://www.pws.io/where-is-oil-headed-russian-minister-predicts-stabilization Wed, 26 Dec 2018 20:26:22 -0500 Tamanna Chhibbar