Ganti Odol

Rabu, 10 April 2019

Stick with tech stocks or miss some big gains, says this analyst - MarketWatch

Welcome to Super Wednesday.

An ECB meeting, Fed minutes, U.S. inflation data and an emergency EU summit on Brexit are all lined up for investors (more details on all of that below). But this may all be a sideshow for Friday’s earnings and to be sure, after another IMF global growth downgrade and fresh trade tensions between the U.S. and Europe have dinged sentiment.

Disappointed that the S&P 500 on Tuesday snapped its longest string of victories since October of 2017, as Apple also narrowly missed a 10-day winning run? South African-based money manager Vestact notes that the iPhone maker has only notched four 10-day win streaks in its history as a public company, in an emailed note to clients.

“Think about that. Apple, the first listed company to be worth $1 trillion, has only had four 10-day winning streaks. Despite creating vast shareholder wealth over time, it has not all been happy days,” says Vestact.

Elsewhere in the technology sector, investors will note the Nasdaq Composite Index has been coming about 2.5% of last August’s record close of 8,109.69 for the last several sessions — a veritably stone’s throw away.

Our call of the day, from Daily Wealth blogger and Stansberry Research analyst, Steve Sjuggerud, says investors may be losing their nerve over tech stocks at precisely the wrong moment, and stand to miss out on more big gains.

He points to the most recent Commitment of Traders report, from the U.S. Commodity Futures Trading Commission (CFTC), which shows positioning of big institutional traders and small speculators and can sometimes indicate future direction of equities and other assets.

“Futures traders recently made record bets on lower prices for tech stocks. The last time we saw a similar extreme was last spring. The index spent the next several months marching higher, rising by double-digit percentage points,” he said, in a recent blog post.

Before last year, you’d have to go back to 2010 for a reading that negative, and from that point, tech stocks soared hundreds of percent, noted Sjuggerud.

“As the bull market continues, traders will pile back into U.S. stocks. That’ll cause a frenzy of higher prices. It’s a virtuous cycle that will fuel the Melt Up. causing prices to rise higher than anyone could imagine,” he said. “And when it does, tech stocks will be big winners.”

If you’re not familiar with the term ‘melt up,’ it basically refers to when an asset that has been steadily moving higher starts to see extremely fast movements up, driven by investor sentiment as they pile in amid fear of missing out (FOMO). It happened in 1999 as an example, when investors rode the dot-com boom higher, until its eventual collapse. Here’s one great explanation.

“When the crowd bets in one direction, the opposite is likely to occur,” maintains Sjuggerud.

Read: If this ‘relentless bid’ dries up, investors could face a ‘gruesome nightmare’

The market

The Dow DJIA, -0.11% , S&P 500 SPX, +0.15% and Nasdaq COMP, +0.43% are all modestly higher. Check out the latest in Market Snapshot.

The dollar DXY, +0.09% and gold US:GCU8 are steady, while crude US:CLU8 is up OPEC revealed chunky March output cuts.

Read: Oil and gas ‘could lose 95% of its value’ by 2050, consulting firm warns

Europe stocks SXXP, +0.20% moved higher. The ECB left key rates unchanged and President Mario Draghi said at a press conference that risks for the region remain to the downside. Eastern. And a two-day emergency summit over Brexit kicks off in Brussels where leaders will debate a one-year delay to avoid the U.K. crashing out without a deal.

Asian equities slipped, with the Nikkei NIK, -0.53% down on concerns about global growth and trade.

The chart

The IMF’s cut to its global growth forecast on Tuesday — the third time in six months — is still drawing chatter. Our colorful chart of the day, from the IMF (h/t The Daily Shot) helps put it all in perspective.

The buzz

Apple AAPL, -0.03% is down after HSBC downgraded it to the equivalent of sell, saying it will take time for the tech group’s recent announcements on services unit to deliver returns.

Delta Air Lines DAL, +0.70% is up after posting results, while Levi LEVI, +5.12% is also getting a boost on its first earnings post-IPO.

Consumer prices rose 0.4% in March, while stripping out food and energy, prices rose 0.1%. Minutes of the latest Fed meeting are due later.

Fed’s Clarida: Current jobless rate could be above ‘full employment’

Indivior INDV, -71.39% is down 80% in London after the U.S. accuses the U.K. pharmaceutical group of a multibillion-dollar fraud to boost sales of its opioid-addiction treatment.

Analyst describes Tesla TSLA, +1.05% as the Salesforce CRM, +1.75% of the auto industry, but says don’t buy it yet.

Joining the stampede of startup techs to list this year, PagerDuty hiked the price range of its IPO that’s expected this week (see five things to know about the DevOps group). And Uber is reportedly looking to offer around $10 billion worth of shares for its IPO, valued at up to $100 billion.

JPMorgan Chase & Co. JPM, -0.26% CEO James Dimon is among several big bank CEOs due to appear in front of the House Financial Services Committee on Wednesday, to discuss the financial industry, 10 years after the crisis. The potential for fireworks could be huge, say some.

The quote

“Please dismiss everybody. I believe you’re supposed to take the gravel and bang it.” — That was Treasury Secretary Steven Mnuchin trying to get out of an appearance in front that same committee on Tuesday.

“Please do not instruct me as to how I am to conduct this committee.” — That was top Democrat, California Rep. Maxine Waters, not having any of it. It’s gavel, by the way, said the internet, which was eating up that fiery exchange.

Random reads

All eyes on the Science Channel later, for the first ever look at a black hole

The Dalai Lama could use some get-well cards

Budweiser‘s farewell video for NBA player Dwyane Wade was a five-hankey number

Israel’s Netanyahu is headed for re-election

From 80 degrees to blizzard conditions. Welcome to spring.

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2019-04-10 13:34:00Z
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Exclusive: US lawmakers introduce bill to boost electric car tax credits - StreetInsider.com

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https://www.streetinsider.com/Litigation/Exclusive:+U.S.+lawmakers+introduce+bill+to+boost+electric+car+tax+credits/15357994.html

2019-04-10 13:03:00Z
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European Central Bank holds interest rates amid gloomy economic outlook - CNBC

The European Central Bank (ECB) held interest rates steady on Wednesday, shortly after the International Monetary Fund (IMF) sharply downgraded its economic growth forecast for the euro zone economy.

The ECB has been forced to backtrack its plans to tighten monetary policy in recent weeks, amid an intensifying climate of economic gloom.

The central bank unveiled a series of fresh stimulus measures last month, and market participants will be closely monitoring comments from ECB President Mario Draghi at around 1:30 p.m. London time.

Interest rates on its marginal lending facility and deposit facility will remain unchanged at 0%, 0.25% and -0.40%, respectively. These have been at record lows following the euro sovereign debt crisis of 2011 in an effort to boost inflation and stimulate growth.

The euro was up 0.15% at $1.1277 at around 1:30 p.m. London time.

The euro zone's central bank, for those nations that share the single currency, ended its massive bond-buying program back in December. But, a rapid decline in sentiment and weak demand from abroad has ratcheted up the pressure for policymakers to unveil even more stimulus.

ECB policymakers are expected to address market speculation about further delays to their first post-crisis rate hike and the side effects of years of negative rates.

On Tuesday, the IMF slashed its forecast for global economic growth this year, saying a slowdown could force world leaders to coordinate stimulus measures.

The IMF also sharply downgraded growth in the euro zone. It now expects the bloc to grow at 1.3% in 2019 — 0.6% lower than its forecast had been six months ago.

Meeting earlier than usual so top policymakers can attend the IMF's Spring meeting in Washington D.C. this week, investors are anxious to understand more about the so-called two-tiered system for bank reserves.

Draghi has already said the ECB must decide whether it needs to mitigate the side-effects of negative rates.

"I think if the ECB were to announce a tiered system soon —or now — the signal would be it is expecting negative interest rates to stay there for even longer," Jane Foley, head of foreign exchange strategy at Rabobank, told CNBC on Wednesday.

As such, one option under consideration is a tiered deposit rate. This aims to protect banks from part of the cost incurred by negative rates — akin to moves taken by central banks in Switzerland and Japan.

The approach would mean that banks are exempted in part from paying the ECB's -0.40% annual charge on their excess reserves. That would boost the banks' profits at a time when many lenders struggle with low profitability.

Some members of the ECB's Governing Council are said to be in favor of such a move.

However, forthcoming personnel changes at the ECB could risk delaying a discussion about a two-tiered system and the likelihood of an interest rate hike over the coming months.

Alongside ECB Chief Economist Peter Praet, Draghi is scheduled to step down in October and policymakers are thought to be reluctant to negotiate a fundamental revamp of monetary policy before new leaders take charge.

Alexis Gray, senior economist at Vanguard Asset Services, told CNBC on Wednesday that the ECB was probably "somewhat hamstrung" when it comes to ramping up stimulus measures over the coming months.

One example of stimulus introduced by the central bank last month was a series of quarterly targeted longer-term refinancing operations (TLTRO-III). The program, which is designed to stimulate bank lending in the euro zone, is set to start in September 2019 and end in March 2021.

The TLTROs are loans that the ECB provides at cheap rates to banks in the euro area. As a result, lenders are able to provide better credit conditions to customers, which in turn stimulates the real economy.

This mechanism was first introduced in 2014, before being brought in for a second time in March 2016.

— CNBC's Silvia Amaro contributed to this report.

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2019-04-10 11:45:30Z
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Delta beats Wall Street forecasts with record revenue and big jump in first-quarter profit - CNBC

Delta Air Lines generated record revenue and posted first-quarter earnings Wednesday that beat Wall Street's expectations for both profit and revenue.

"Demand for Delta's product has never been stronger," President Glen Hauenstein said in a statement announcing the earnings. "With our customer-focused commercial initiatives delivering strong customer loyalty and top-line momentum, we now expect full-year revenue growth of five to seven percent, an increase from our prior guidance."

Its shares rose by almost 3 percent in premarket trading.

The Atlanta-based carrier earned 96 cents a share, on an adjusted basis, compared with an average of 90 cents expected by analysts polled by Refinitiv.

It generated $10.47 billion in revenue, compared with $10.42 billion forecast by analysts. Its revenue jumped 5.1 percent, up from $9.97 billion during the first three months last year.

On an unadjusted basis, the company's profits jumped 31 percent to $730 million, or $1.09 per share, up from $557 million or 79 cents a share during the same time period last year.

Investors were expecting a strong quarter from Delta, especially after it raised its earnings and revenue guidance last week, citing healthy demand that helped drive record performance.

Delta said it would keep capacity consistent into the summer months, which will alleviate investor concerns that scheduling too many flights in peak travel season would lower fares and reduce revenue.

It forecast an even stronger second quarter, telling investors its earnings per share will fall between $2.05 and $2.35 and total operating revenue will rise by 6% to 8% over the same quarter last year. It expects to up its flight capacity by 4% to 4.5%, year-over-year.

Delta's revenue per available seat mile, a key industry metric of how much airlines are bringing in for each seat they fly a mile, rose 2.4% in the first three months of 2019, compared with the year-earlier period. The Atlanta-based carrier said it expects this figure to rise between 1.5% and 3.5% in the second-quarter of this year.

Delta also said its contract renewal with American Express helped drive revenue in the first quarter. The partnership, which focuses on the SkyMiles credit cards, will run through 2029.

The airline has also escaped the fallout from Boeing's 737 Max prolonged grounding following two fatal crashes over five months that killed a total of 346 people. Wall Street analysts recently downgraded Boeing and Southwest Airlines, and American Airlines cut its revenue guidance for the first quarter and canceled 1,200 flights. Southwest also cut its guidance after canceling 10,000 flights over bad weather, unexpected maintenance and Max groundings.

"Our hearts go out to all who are impacted," Delta CEO Ed Bastian said on CNBC's "Squawk Box" on Wednesday morning. "This is not something we want to compete around. I'm confident Boeing will get to the right answer with respect to the fix and hope they get the product back in the sky as soon as possible."

Delta executives are holding a call with analysts at 10 a.m. ET.

CORRECTION: This story was corrected to update who is holding a call with analysts Wednesday. It's Delta executives.

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2019-04-10 12:15:14Z
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U.S. Core Inflation Unexpectedly Cools Amid Apparel Data Shift - Bloomberg

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https://www.bloomberg.com/news/articles/2019-04-10/u-s-core-inflation-unexpectedly-cools-amid-apparel-data-shift

2019-04-10 12:30:00Z
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Indivior shares plunge on 'shameful' opioid drug scheme - BBC News

Shares in drugmaker Indivior plunged 70% after the US Department of Justice charged it with fraudulent marketing.

A federal grand jury in Virginia accused Indivior of a "truly shameful scheme to put profits over the health and well-being of patients".

It alleged the firm conducted an illicit scheme to increase sales of Suboxone Film, an opioid drug used to treat opioid addiction.

Indivior has issued an eight page rebuttal contesting the charges.

The company, which calls itself the world leader in addiction treatment, is listed in London, with a research centre in Hull and a US headquarters.

The Department of Justice (DoJ) has demanded at least $3bn in fines. Indivior had a market value of £202m after the collapse of its shares on Wednesday.

Assistant Attorney General Jody Hunt said: "Indivior promoted it with a disregard for the truth about its safety and despite known risks of diversion and abuse."

According to the indictment, Indivior "obtained billions of dollars in revenue from Suboxone Film prescriptions by deceiving health care providers and health care benefit programmes into believing that Suboxone Film was safer, less divertible, and less abusable than other opioid-addiction treatment drugs".

It said Indivior "lacked any scientific evidence to support those claims".

Indivior said: "Put simply, Indivior is not a contributor to the opioid epidemic. Rather, as acknowledged by government experts at the FDA [Food and Drug Administration]and CDC [Centers for Disease Control and Prevention], its medicines are a key part of combatting it.

"Key allegations made by the Justice Department are contradicted by the government's own scientific agencies, they are almost exclusively based on years-old events from before Indivior became an independent company in 2014, and they are wrong."

Indivior was spun off from Reckitt Benckiser in 2014. The company's shares had already lost some four-fifths of their value before today's news, as it faced increasing competition from generic drug makers such as Dr Reddy and Mylan.

Opioid epidemic

While Indivior is a treatment for opioid addiction, opioid manufacturers such as Purdue Pharma, Johnson & Johnson and Teva Pharmaceuticals are also facing lawsuits.

The DoJ also alleged that Indivior used a "Here to Help" internet and telephone programme as part of its scheme to induce physicians to write prescriptions for Suboxone Film.

The DOJ's indictment said Indivior touted "Here to Help" as a resource for opioid-addicted patients but used the programme in part to connect patients to doctors it knew were prescribing Suboxone and other opioids to more patients than were allowed by federal law, at high doses, and in "suspect circumstances".

Indivior denied this and said: "To the contrary, we have engaged in an extensive education campaign to teach doctors about recommended Suboxone dosing limits and patient caps and have developed a process to identify concerning prescribers, going beyond what the law requires."

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2019-04-10 11:03:45Z
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Top 5 Things to Know in The Market on Wednesday - Investing.com

Investing.com - Here are the top five things you need to know in financial markets on Wednesday, April 10:

1. Fed Minutes, U.S. Inflation Data

Investors will focus on the release of the from the Federal Reserve's last meeting, due at 2:00PM ET (18:00 GMT), for further insight into the outlook for monetary policy in the months ahead.

The U.S. central bank all but swore off raising interest rates again this year at the conclusion of its policy meeting on March 20 and indicated it intends to end the reduction of its massive $4.2 trillion balance sheet by September.

In addition to the Fed, the Commerce Department will publish March at 8:30AM ET (12:30 GMT).

Consumer prices are expected to have risen 0.3% last month, according to estimates. On an annual basis, the CPI is projected to have risen 1.8%.

Excluding the cost of food and fuel, core inflation prices are forecast to have risen 0.2% last month and 2.1% from a year earlier.

The , which measures the greenback’s strength against a basket of six major currencies, was at 96.54 by 5:45AM ET (10:45 GMT), not far from Tuesday's two-week low of 96.46.

In the bond market, U.S. Treasury yields were little changed, with the benchmark yield slipping to 2.49%.

2. ECB Meeting

The is all but certain to keep policy on hold at the conclusion of today's policy meeting, which was brought forward by a day to allow policymakers to get to Washington DC in time for the International Monetary Fund’s spring meeting.

The ECB's decision is due at 7:45AM ET (11:45 GMT), while President 's press conference is scheduled for 8:30AM ET (12:30 GMT).

Market participants will be anxious to hear more detail about the possibility of a tiered deposit rate, a step that would allow the ECB to cut its official interest rates again without hurting the already weak profitability of Eurozone banks.

They’ll also want to hear more about the new long-term loans that are due to start in September.

The held firm at $1.1275, extending its slow recovery from a four-week low of $1.1183 touched on April 2.

3. Emergency Brexit Summit

European leaders will decide whether to grant the U.K. another extension to its departure from the European Union at an emergency summit in Brussels.

The summit begins at 12:00PM ET (16:00 GMT).

British Prime Minister Theresa May will formally present her case for requesting a short delay to Brexit until June 30.

However, it’s widely expected that the U.K. will be granted a longer, flexible extension with conditions attached.

An extension until the end of the year or until March 2020, was shaping up to be most likely, EU diplomats said. Such an option would allow Britain to leave earlier if parliament can agree on an alternative to the Withdrawal Agreement negotiated by May's government and the EU.

The was a shade higher at $1.3073.

4. EIA Oil Supply Report

In commodities, the U.S. Energy Information Administration will release its official weekly oil supplies report for the week ended April 5 at 10:30AM ET (14:30 GMT).

Analysts expect the EIA to report a gain of around 2.2 million barrels in crude inventories. The American Petroleum Institute, a trade organization, said late on Tuesday that U.S. crude inventories rose 4.1 million barrels in the latest week.

The API and EIA figures often diverge.

U.S. futures were up 52 cents, or around 0.8%, at $64.50 a barrel, after going as high as $64.79 in the prior session, the most since Nov. 1.

International futures were at $71.06 per barrel, up 45 cents, or about 0.7%, within sight of Tuesday's five-month peak of $71.34.

Prices remained supported amid geopolitical concerns in Libya. Any disruption in Libyan oil exports will further squeeze a global crude market already struggling to adjust to U.S. sanctions against Iran and Venezuela.

5. U.S. Futures Point to Slightly Higher Open

On Wall Street, U.S. stock futures pointed to a slightly higher open, as market participants await inflation data and minutes from the Federal Reserve’s latest meeting.

The blue-chip were up 40 points, or about 0.2%, the rose 5 points, or around 0.2%, while the tech-heavy indicated a gain of 11 points, or roughly 0.2%.

U.S. stocks lost ground on Tuesday as the IMF lowered its global growth outlook and as President Donald Trump threatened to impose tariffs on $11 billion of European goods.

Elsewhere, European stocks rose in mid-morning trade, led by advances in Madrid and Frankfurt.

Earlier, shares in Asia closed mixed amid fresh concerns over the outlook for the global economy.

Read more: : Jesse Cohen

-- Reuters contributed to this report

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2019-04-10 09:47:00Z
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