http://www.businessinsider.com/moneygame en-us Wed, 12 Jul 2017 11:14:31 -0400 Wed, 12 Jul 2017 11:14:31 -0400 The latest news from Markets http://static3.businessinsider.com/assets/images/bilogo-250x36-wide-rev.png http://www.businessinsider.com http://markets.businessinsider.com/news/stocks/nvidias-stock-price-secret-weapon-just-led-to-an-upgrade-from-wall-street-2017-7-1002167712 http://feedproxy.google.com/~r/TheMoneyGame/~3/CrpJQMxbXhA/nvidias-stock-price-secret-weapon-just-led-to-an-upgrade-from-wall-street-2017-7-1002167712 Wed, 12 Jul 2017 10:43:06 -0400 Seth Archer <p><img style="float:right;" src="http://static2.businessinsider.com/image/59662ca50976dba1008b4974-1000/nvidia employees.jpg" alt="NVIDIA employees" data-mce-source="Glassdoor" data-link="https://www.glassdoor.com/Photos/NVIDIA-Office-Photos-E7633.htm" /></p><p></p> <p><a href="http://markets.businessinsider.com/stock/nvda-Quote">Nvidia</a> has been on an upward tear all year, and Wall Street is just now figuring out why.</p> <p>The company is well known by PC gamers for its graphics processing units, and Nvidia has gained a recent foothold in the data center and driverless-car sectors. But these are just symptoms of Nvidia's biggest weapon: a company culture of innovation.</p> <p>That's according&nbsp;to a note to clients from SunTrust Robert Humphrey, who upgraded Nvidia to a Buy and raised the price target on the stock to $177, 12% higher than the current share price.</p> <p>"We believe there are still aspects of the company, specifically related to its role in AI, that are under-appreciated by the Street," William Stein, an analyst at SunTrust, wrote. "Nvidia has a strong culture of innovation and desire to drive general purpose graphics processing unit (GP-GPU) computing adoption."</p> <p>&nbsp;The company has produced graphics processing units, GPUs, for the PC gaming community since the 90s but general purpose GPUs that the artificial community has started to use are a more recent technology. Nvidia first started <a href="http://www.nvidia.com/object/cuda_home_new.html">focusing on&nbsp;the technology in the early 2000s</a>.</p> <p>Nvidia's <a href="http://www.nvidia.com/object/cuda_home_new.html">CUDA computing platform was first released in 2006</a> and it allows programmers to take advantage of the "parallel" processing power of the company's GPUs to better expand their usefulness beyond processing video game graphics.</p> <p>The CUDA software is one specific innovation Stein says gives Nvidia a huge competitive edge because it is harder to replicate than the company's hardware technology.</p> <p>Nvidia also sponsors <a href="http://research.nvidia.com/">lots of academic research</a>. The company has <a href="http://markets.businessinsider.com/news/stocks/nvidia-stock-price-rising-after-announcing-ai-partnership-with-baidu-2017-7-1002149994">partnered with a large number of car and tech company data teams</a> to aid them in their pursuit of autonomous vehicles. It also sponsors research on deep learnings and artificial intelligence, which is often run using the company's hardware and software.</p> <p>This endless pursuit of innovation has led <a href="http://markets.businessinsider.com/news/stocks/nvidia-stock-price-the-smartest-company-in-the-world-right-now-2017-7-1002144319">Nvidia to be crowned as the smartest company in the world by MIT</a>, and Stein says it's more important than any single chip or technology the company produces today.</p> <p>It's why, even though investors love Nvidia, Stein thinks there is more room for the stock to grow. He calls the culture of innovation at Nvidia a "deep and wide" moat that separates it's from traditional and startup competitors.</p> <p>Investors have so far rewarded Nvidia for the innovations that come as a result of the company culture. Shares have increased 54.05% this year. Nvidia is currently trading at $157.01 and increased 2.18% on Wednesday after the upgrade by SunTrust.</p> <h2><a href="http://markets.businessinsider.com/stock/nvda-Quote">Click here to read all of our coverage of Nvidia ...</a></h2> <p>&nbsp;<a href="http://markets.businessinsider.com/stock/nvda-Quote"><img src="http://static1.businessinsider.com/image/59662ad5abc1c8c4008b49f6-782/screen shot 2017-07-12 at 95719 am.jpg" alt="Nvidia stock price" data-mce-source="Markets Insider" data-link="http://markets.businessinsider.com/stock/nvda-Quote" /></a></p><p><strong>SEE ALSO:&nbsp;<a href="http://markets.businessinsider.com/news/stocks/nvidia-stock-price-set-to-dominate-the-forth-tectonic-shift-in-computing-2017-7-1002161013" >Nvidia is set to dominate the '4th tectonic shift' in computing</a></strong></p> <p><a href="http://markets.businessinsider.com/news/stocks/nvidias-stock-price-secret-weapon-just-led-to-an-upgrade-from-wall-street-2017-7-1002167712#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/economist-explains-trump-pulls-us-out-nafta-2017-6">An economist explains what could happen if Trump pulls the US out of NAFTA</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/CrpJQMxbXhA" height="1" width="1" alt=""/> Glassdoor http://markets.businessinsider.com/news/stocks/nvidias-stock-price-secret-weapon-just-led-to-an-upgrade-from-wall-street-2017-7-1002167712 http://www.businessinsider.com/stock-market-shiller-pe-cape-david-bianco-2017-7 http://feedproxy.google.com/~r/TheMoneyGame/~3/1znw6-qbkiI/stock-market-shiller-pe-cape-david-bianco-2017-7 Wed, 12 Jul 2017 10:10:00 -0400 Akin Oyedele <p><span><img style="float:right;" src="http://static3.businessinsider.com/image/596622e50976db1a008b48f2-747/screen shot 2017-07-12 at 85330 am.png" alt="Screen Shot 2017 07 12 at 8.53.30 AM" data-mce-source="Multpl.com" data-link="http://www.multpl.com/shiller-pe/" />Many ways to&nbsp;measure the stock market's value are trading at or above their&nbsp;<a href="http://www.businessinsider.com/bofa-stocks-are-nearing-tech-bubble-valuations-2016-10">historical average</a>.</span></p> <p><span>They include the most popular one: the Shiller price-earnings ratio, which on Tuesday was more than&nbsp;10 points above its long-run average of 16.76. </span></p> <p><span>It's also called the&nbsp;</span>cyclically-adjusted price-earnings (CAPE) ratio because it&nbsp;takes the price of the S&amp;P 500 and divides it by the average of ten years worth of earnings. By averaging, the ratio accounts for the noise that&nbsp;different business cycles and other temporary events introduce.&nbsp;</p> <p>When the PE ratio is above its historical average &mdash; like it is now &mdash; the market is considered expensive.&nbsp;</p> <p>"It's a flawed metric," said David Bianco, the chief investment strategist for the Americas&nbsp;at Deutsche Asset Management, at a media briefing on Tuesday. "W<span>hen it comes to something like the Shiller PE ... that deserves to be trashed. We really have to move on and not even talk about that anymore."</span></p> <p>He added that as economists question the usefulness of principles like the Taylor Rule and the <a href="http://www.businessinsider.com/phillips-curve-us-japan-larry-hatheway-gam-2017-6">Phillips Curve</a>, investors, too, should rethink the Shiller PE.&nbsp;</p> <p>Bianco has a longstanding disagreement with the CAPE ratio. He reiterated it in the context of forecasts that stock market <a href="http://www.businessinsider.com/henry-blodget-high-valuations-low-returns-john-hussman-2017-6">returns would be lower</a> for the rest of this cycle given the market's stretched valuation.&nbsp;</p> <h2>What's wrong with Shiller PE?</h2> <p>The CAPE ratio accounts for inflation in its earnings adjustment. However, earnings should always rise more than the inflation rate because companies don't pay out 100% of their earnings, Bianco said.&nbsp;</p> <p>The share of&nbsp;profits that companies don't pay out as dividends and keep to reinvests or debt payments &mdash; retained earnings &mdash; aren't accounted for in the Shiller PE, according to Bianco.&nbsp;</p> <p><span>"When you retain earnings, there should be earnings&nbsp;growth above inflation," he said.</span></p> <p><span>"If a management team came in and said 'we grew earnings by inflation over the past decade', you'd probably say 'get out.' Unless they paid out 100% of their earnings as dividends. If they'd been retaining any significant portion of their earnings for reinvestment, the earnings growth should have been much better than inflation."</span></p> <p><span>The self-titled&nbsp;<a href="http://www.businessinsider.com/most-important-charts-markets-finance-chartbook-2017-6/#david-bianco-23">Bianco PE</a>&nbsp;ratio takes the last 10 years of earnings and adjusts not just for inflation, but also for the retention ratio and an estimate of the rate of return on that retention capital, which he pegs at 6%. In Bianco's view, that's a better way to make a time-value adjustment to historical earnings.</span></p> <p><span>Either way, the market is expensive, he said.</span></p> <p><span>"The Shiller PE is not the CAPE, Bianco&nbsp;said. "It's one form of the&nbsp;cyclically adjusted PE, and it's a form of the cyclically adjusted PE that I think is flawed."&nbsp;</span></p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/stock-market-earnings-preview-q2-2017-2017-7" >http://www.businessinsider.com/most-important-charts-markets-finance-chartbook-2017-6/#david-bianco-23</a></strong></p> <p><a href="http://www.businessinsider.com/stock-market-shiller-pe-cape-david-bianco-2017-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/economist-explains-trump-pulls-us-out-nafta-2017-6">An economist explains what could happen if Trump pulls the US out of NAFTA</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/1znw6-qbkiI" height="1" width="1" alt=""/> Multpl.com http://www.businessinsider.com/stock-market-shiller-pe-cape-david-bianco-2017-7 http://www.businessinsider.com/dollar-price-yellen-says-fed-will-take-time-raising-rates-2017-7 http://feedproxy.google.com/~r/TheMoneyGame/~3/lBRmRdQ3AME/dollar-price-yellen-says-fed-will-take-time-raising-rates-2017-7 Wed, 12 Jul 2017 09:43:00 -0400 Joe Ciolli <p><img style="float:right;" src="http://static4.businessinsider.com/image/596625e30976db1b008b4931-637/screen shot 2017-07-12 at 93417 am.png" alt="Screen Shot 2017 07 12 at 9.34.17 AM" data-mce-source="Markets Insider" data-mce-caption="The US Dollar Index flirted with its lows for the year after Fed Chair Janet Yellen's statement was interpreted as dovish." data-link="http://markets.businessinsider.com/index/us-dollar-index" /></p><p>The verdict is in, and global markets think Fed Chair <a href="http://www.businessinsider.com/janet-yellen-testifies-before-congress-on-monetary-policy-2017-7">Janet Yellen</a>'s prepared statement on Wednesday morning was dovish.</p> <p>Yellen signaled that the Federal Reserve won't rush to tighten monetary policy, citing inflation that's continually lagged its target. Her comments echoed ones made on Tuesday by central bank governor Lael Brainard, who <a href="https://www.bloomberg.com/news/articles/2017-07-11/fed-s-brainard-backs-balance-sheet-runoff-soon-wary-on-rates">expressed caution</a> when discussing the pace of future rate hikes.</p> <p>The message was all traders needed to push the <a href="http://markets.businessinsider.com/index/us-dollar-index">US Dollar Index</a>&nbsp;within&nbsp;0.2% of its lowest level this year. Currencies generally weaken relative to peers on domestic monetary policy that's construed as accommodative. To the contrary, they rise when it's signaled that the money supply will be siphoned off.</p> <p>The Dollar Index fell as low as $95.51 immediately after the publication of Yellen's statement. The only other intraday move lower than that came on June 30, when it sunk to $95.47. The gauge erased the loss and was trading less than 0.1% higher as of 9:30 a.m. ET.</p> <p>Yellen's statement also pushed the S&amp;P 500 higher. It's up&nbsp;0.5%, after futures on the index traded&nbsp;just slightly higher before the Fed chief's&nbsp;comments.</p> <p>Elsewhere in markets, the benchmark 10-year yield is lower by 5 basis points at 2.31%.</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/stock-market-hottest-stocks-fang-faang-could-be-derailed-by-fed-2017-7" >Red-hot tech stocks could be derailed by the Fed</a></strong></p> <p><a href="http://www.businessinsider.com/dollar-price-yellen-says-fed-will-take-time-raising-rates-2017-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/economist-explains-trump-pulls-us-out-nafta-2017-6">An economist explains what could happen if Trump pulls the US out of NAFTA</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/lBRmRdQ3AME" height="1" width="1" alt=""/> Markets Insider http://www.businessinsider.com/dollar-price-yellen-says-fed-will-take-time-raising-rates-2017-7 http://www.businessinsider.com/poll-obamacare-repeal-bcra-senate-health-care-bill-2017-7 http://feedproxy.google.com/~r/TheMoneyGame/~3/1S2TRDz3h-E/poll-obamacare-repeal-bcra-senate-health-care-bill-2017-7 Wed, 12 Jul 2017 09:33:33 -0400 Bob Bryan <p><img style="float:right;" src="http://static6.businessinsider.com/image/5966194eabc1c8b1008b48ec-2400/ap17187686786181.jpg" alt="jerry moran healthcare protest town hall" data-mce-source="John Hanna/AP Images" /></p><p>A pair of new polls spell tough news for Republican lawmakers attempting to repeal and replace Obamacare, as their own base is becoming increasingly disillusioned with their attempt to overhaul the healthcare system.</p> <p>Just a day before Senate GOP leadership is set to debut a revised version of the the Better Care Reconciliation Act (BCRA), a poll from Morning Consult/Politico showed Republican voters want&nbsp;lawmakers to move on from the bill and work on a bipartisan solution for healthcare.</p> <p><a href="https://morningconsult.com/2017/07/12/plurality-voters-view-north-korea-top-threat-u-s/">According to the poll</a>, 54% of Republican voters surveyed said members of their party should work with Democrats to pass a healthcare reform bill, while just 39% said only Republicans should work together. Overall, 57% of voters believe that Republicans should work with Democrats, while 34% say the GOP should stay on its current course.</p> <p>Republicans, including Senate Majority Leader Mitch McConnell, <a href="http://www.businessinsider.com/mcconnell-republican-democrats-healthcare-bill-senate-2017-7">have floated the idea of working with Democrats</a> on a bill to shore up insurance markets if the BCRA fails to earn&nbsp;consensus among members of the party.</p> <p>Despite the growing desire to work with Democrats, Republican voters still want Congress to stick with healthcare as the primary issue. Overall, however, 47% of Americans surveyed said the Republicans should move onto other issues, while 40% want them to continue to focus on repealing and replacing Obamacare.</p> <p>Overall, the current form of the BCRA&nbsp;had a 40% approval and 47% disapproval in the poll.</p> <p><a href="https://www.axios.com/public-wants-republicans-to-work-with-democrats-on-health-care-2457433357.html">Another poll from the Kaiser Family Foundation</a> also showed an appetite for Republicans to move on from their current path of repeal and replace.</p> <p>While 54% of Republicans&nbsp;surveyed in the poll said they want the GOP to stick with the repeal and replace of Obamacare, while 41% want them to work with Democrats to "improve the Affordable Care Act."</p> <p>Among people who say they support Trump, there's even more of an appetite for tweaking&nbsp;Obamacare,&nbsp;<a href="https://www.axios.com/public-wants-republicans-to-work-with-democrats-on-health-care-2457433357.html">according to the Kaiser poll</a>. Forty-seven percent of Trump supporters&nbsp;want repeal and replace, while 46% want the GOP to work closer with Democrats on a healthcare solution.</p> <p>Overall, the Kaiser found that 23% of voters want Republicans to simply repeal and replace the law, while 71% want a bipartisan solution.</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/mcconnell-republican-democrats-healthcare-bill-senate-2017-7" >Republicans are starting to admit they may have to work with Democrats on healthcare</a></strong></p> <p><a href="http://www.businessinsider.com/poll-obamacare-repeal-bcra-senate-health-care-bill-2017-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/reporters-clash-with-sanders-during-white-house-press-briefing-2017-6">'You're inflaming everybody!': Watch reporters clash with Sanders over press coverage</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/1S2TRDz3h-E" height="1" width="1" alt=""/> John Hanna/AP Images http://www.businessinsider.com/poll-obamacare-repeal-bcra-senate-health-care-bill-2017-7 http://markets.businessinsider.com/news/stocks/amazon-stock-price-got-a-nice-bump-from-prime-day-2017-7-1002167368 http://feedproxy.google.com/~r/TheMoneyGame/~3/d7H43aIllEw/amazon-stock-price-got-a-nice-bump-from-prime-day-2017-7-1002167368 Wed, 12 Jul 2017 09:17:00 -0400 Seth Archer <p><img style="float:right;" src="http://static3.businessinsider.com/image/59661f510976db46008b48fa-861/screen shot 2017-07-12 at 90808 am.jpg" alt="Amazon stock price" data-mce-source="Markets Insider" data-link="http://markets.businessinsider.com/stock/AMZN-Quote" /></p><p></p> <p><a href="http://markets.businessinsider.com/stock/AMZN-Quote">Shares of Amazon</a>&nbsp;are higher&nbsp;after the company's Prime Day festivities came to a close.</p> <p>The 30-hour day of deals which&nbsp;was expected to <a href="http://www.businessinsider.com/amazon-stock-price-will-reap-the-benefits-of-prime-day-long-after-its-over-2017-7?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest">bring in $1 billion in revenue</a>&nbsp;sent the stock back&nbsp;above the $1,000 level.</p> <p>Amazon's&nbsp;Prime Day is akin to Black Friday or Cyber Monday. The company posted deals throughout Monday night and Tuesday, causing&nbsp;customers to flock to the platform to scoop up fashion items, electronics and deeply discounted Amazon products.</p> <p>Amazon traditionally doesn't release exact sales numbers for it's Prime Day, but analysts often pour over sparse details to try and determine its success. Amazon uses the increase in sales to test its delivery systems ahead of the holiday shopping season and to promote its Prime subscription service. Only Prime members can take advantage of the deals Amazon promotes.</p> <p>Shares of Amazon are&nbsp;up 32.79% this year.</p> <h2><a href="http://markets.businessinsider.com/stock/AMZN-Quote">Click here to watch Amazon's stock price in real time...</a></h2><p><strong>SEE ALSO:&nbsp;<a href="http://markets.businessinsider.com/news/stocks/amazon-prime-day-10-billion-lost-productivity-analyst-2017-7-1002164158" >Amazon’s Prime Day event could lead to $10 billion in lost productivity, says CNBC analyst</a></strong></p> <p><a href="http://markets.businessinsider.com/news/stocks/amazon-stock-price-got-a-nice-bump-from-prime-day-2017-7-1002167368#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/economist-explains-trump-pulls-us-out-nafta-2017-6">An economist explains what could happen if Trump pulls the US out of NAFTA</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/d7H43aIllEw" height="1" width="1" alt=""/> Markets Insider http://markets.businessinsider.com/news/stocks/amazon-stock-price-got-a-nice-bump-from-prime-day-2017-7-1002167368 http://www.businessinsider.com/tesla-stock-price-traders-unprepared-for-earnings-report-season-2017-7 http://feedproxy.google.com/~r/TheMoneyGame/~3/2NnpXPBc5n8/tesla-stock-price-traders-unprepared-for-earnings-report-season-2017-7 Wed, 12 Jul 2017 08:57:00 -0400 Joe Ciolli <p><img style="float:right;" src="http://static4.businessinsider.com/image/55cc81c4371d2215008bf739-2400/ap100629118199.jpg" alt="Elon Musk" data-mce-source="AP" /></p><p></p> <p>Just three weeks away from <a href="http://markets.businessinsider.com/stock/TSLA-Quote">Tesla</a>'s second-quarter earnings report, investors are looking shockingly complacent.</p> <p>You'd think they'd know better.</p> <p>Over the past eight quarters, Tesla has seen a median move of 5% on <a href="http://www.businessinsider.com/chart-to-prepare-for-second-quarter-earnings-season-2017-7">earnings</a>. Options traders, however, are pricing in just a 2.5% fluctuation this time around, according to data compiled by Goldman Sachs. That's the biggest underpricing out of the firm's entire options universe for companies reporting before August 4.</p> <p>That 2.5% implied move is even more surprising when you consider <a href="http://www.businessinsider.com/tesla-model-3-increases-mania-2017-7">recent, non-earnings-related fluctuations</a> in the stock. Tesla has swung by an average of 2.2% a day over the past month, on an absolute basis.</p> <p>This is notable because earnings reports have historically stirred up outsize price swings for companies across the stock market, yet Tesla traders don't seem prepared for anything more than the usual daily action.</p> <p><img style="display: block; margin-left: auto; margin-right: auto;" src="http://static3.businessinsider.com/image/596612940976db73078b4779-657/screen shot 2017-07-12 at 81215 am.png" alt="Screen Shot 2017 07 12 at 8.12.15 AM" data-mce-source="Goldman Sachs" data-mce-caption="Tesla has the smallest implied earnings move in Goldman's stock universe, relative to fluctuations on past reports." /></p> <p>Tesla's share price has experienced considerable volatility over the past few weeks, stemming mostly from pessimistic commentary about its growth prospects. On July 5, Goldman Sachs analysts <a href="http://www.businessinsider.com/tesla-stock-price-goldman-downgrade-2017-7">cut the firm's price target</a> on the company, citing a lack of upside in demand for the Model S sedan and the Model X SUV.</p> <p>The Elon Musk-led tech titan also experienced weakness around that time after <a href="http://www.businessinsider.com/tesla-responds-to-model-s-crash-test-findings-iihs-2017-7">falling short of the highest crash-test rating</a> by the Insurance Institute for Highway Safety. But the company has also seen its stock spike on positive news, like on Tuesday, when it announced it was <a href="http://markets.businessinsider.com/news/stocks/tesla-adds-repair-vans-to-address-service-problems-before-model-3-2017-7-1002164031">expanding its service capacity</a>.</p> <p>Still, the stock is down by roughly 15% since hitting a record high on June 23.</p> <p>So why does investor positioning even matter at this point, with Tesla's earnings report still three weeks away? For one, it's entirely routine for traders to try to get ahead of earnings-related moves in the weeks, even months, before reports. It can be a smart move, because positions can get crowded and more expensive as the date nears.</p> <p>And this type of positioning is happening elsewhere. Goldman highlights Synchrony Financial and Express Scripts as the two companies seeing the largest differences between past earnings moves and the price swing expected in the next couple of weeks.</p> <p><img src="http://static4.businessinsider.com/image/59661b890976dbc4028b487f-863/screen shot 2017-07-12 at 85148 am.png" alt="Tesla" data-mce-source="Markets Insider" data-link="http://markets.businessinsider.com/stock/TSLA-Quote" /></p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/chart-to-prepare-for-second-quarter-earnings-season-2017-7" >Earnings season is here — there's only one chart you need to know</a></strong></p> <p><a href="http://www.businessinsider.com/tesla-stock-price-traders-unprepared-for-earnings-report-season-2017-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/economist-explains-trump-pulls-us-out-nafta-2017-6">An economist explains what could happen if Trump pulls the US out of NAFTA</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/2NnpXPBc5n8" height="1" width="1" alt=""/> AP http://www.businessinsider.com/tesla-stock-price-traders-unprepared-for-earnings-report-season-2017-7 http://markets.businessinsider.com/commodities/news/stock-market-news-what-traders-are-chatting-about-12-2017-7-1002167011 http://feedproxy.google.com/~r/TheMoneyGame/~3/jQemVM4CjRQ/stock-market-news-what-traders-are-chatting-about-12-2017-7-1002167011 Wed, 12 Jul 2017 08:17:00 -0400 Seth Archer <p><img style="float:right;" src="http://static4.businessinsider.com/image/596612a6abc1c81a008b48f2-711/stock-futures-dip-after-north-korea-nuclear-test.jpg" alt="Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the opening bell in New York, U.S., August 30, 2016. REUTERS/Lucas Jackson/File Photo " data-mce-source="Thomson Reuters" data-mce-caption="Traders work on the floor of the NYSE" /></p><p></p> <p>Dave Lutz, head of ETFs at JonesTrading, has an overview of today's markets.</p> <ul> <li><a href="http://www.businessinsider.com/janet-yellen-testifies-before-congress-on-monetary-policy-2017-7">Fed Chair Janet Yellen&nbsp;testifies before Congress&nbsp;today at 10 a.m. ET.</a></li> <li>European markets are all higher.</li> <li>Oil is up 1.5%.</li> </ul> <p><strong>Here's Lutz:</strong>&nbsp;</p> <blockquote> <p>Good Morning!&nbsp; US futures are in rally mode ahead of Yellen (<span data-term="goog_1145410977">8:30</span><span>&nbsp;</span>Speech release,<span>&nbsp;</span><span data-term="goog_1145410978">10am</span><span>&nbsp;</span>testimony) &ndash; with Nasdaq adding 30bp as NVDA, AMD and GILD are all 1%+ higher.&nbsp;&nbsp; It&rsquo;s a sea of green across Europe, with the DAX climbing 70bp as Energy Companies outperform on the commodity&rsquo;s strength &ndash; while Consumer Discretionary stocks rebound on solid numbers from Burberry in London.&nbsp;&nbsp; FTSE up 90bp, as Miners, Banks and Healthcare sectors all climb 1%+.&nbsp; Volumes remain light, with Frankfurt trading ~20% below normal turnover.&nbsp;&nbsp;&nbsp; Strong action in Hong Kong, with the Hang Seng up 80bp and back over 20k &ndash; while the China Enterprises index leapt 1.5%.&nbsp; Red otherwise, with China off 30bp - Nikkei lost 50bp as the Yen strengthened, and Aussie hit for 1% as the banks were all under pressure down under.</p> <p>Very Interesting action in Sovereigns, where the German 10YY is jumping 5bp, but US Yields continue to slide a touch, with the 10YY struggling with the 2.35% level.&nbsp;&nbsp; DXY up small, as the Euro just off 2year highs against the Greenback on stronger EU Industrial output.&nbsp; The Loonie is flat ahead of Bank o Canada, while Pound higher as UK Employment data beats.&nbsp;&nbsp;&nbsp; Metals are mostly higher with Ore holding yesterday&rsquo;s gains, and Strikes in Chile supporting Copper.&nbsp;&nbsp; Decent overnight in Energy names with Oil up over 1.5% as API showed a much bigger draw &ndash; while Traders are watching Lumber as wildfires consume forests in BC.&nbsp; Grains continue to see profit-taking from the recent strength.</p> </blockquote><p><strong>SEE ALSO:&nbsp;<a href="http://markets.businessinsider.com/news/stocks/opening-bell-july-12-2017-2017-7-1002166613" >10 things you need to know about the markets today</a></strong></p> <p><a href="http://markets.businessinsider.com/commodities/news/stock-market-news-what-traders-are-chatting-about-12-2017-7-1002167011#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/economist-explains-trump-pulls-us-out-nafta-2017-6">An economist explains what could happen if Trump pulls the US out of NAFTA</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/jQemVM4CjRQ" height="1" width="1" alt=""/> Thomson Reuters http://markets.businessinsider.com/commodities/news/stock-market-news-what-traders-are-chatting-about-12-2017-7-1002167011 http://www.businessinsider.com/janet-yellen-testifies-before-congress-on-monetary-policy-2017-7 http://feedproxy.google.com/~r/TheMoneyGame/~3/jjSAmA2PkMI/janet-yellen-testifies-before-congress-on-monetary-policy-2017-7 Wed, 12 Jul 2017 08:02:39 -0400 Pedro Nicolaci da Costa <p><img style="float:right;" src="http://static4.businessinsider.com/image/59660eb5abc1c81a008b48e6-697/yellen-says-fed-to-give-banks-more-info-on-stress-tests-letter.jpg" alt="Federal Reserve Board Chairwoman Janet Yellen speaks during a news conference after the Fed releases its monetary policy decisions in Washington, U.S., June 14, 2017. REUTERS/Joshua Roberts" data-mce-source="Thomson Reuters" data-mce-caption="Federal Reserve Board Chairwoman Janet Yellen speaks during a news conference after the Fed releases its monetary policy decisions in Washington" /></p><p></p> <p>Janet Yellen takes questions from reporters only four times a year, so her semiannual testimony on monetary policy is a key window into the powerful Federal Reserve chair's views on key issues such as interest rates and regulation.</p> <p>Yellen will find herself caught in the usual partisan tug-of-war in which politicians on both sides try to ask questions that affirm their worldviews, generally with limited success as she tends to give only broad answers to questions not directly related to her mandate.</p> <p>She will also be asked whether she's had any discussions with President Donald Trump about staying in the job. He is widely expected to replace her at the end of her term as chair early next year and <a href="http://www.businessinsider.com/gary-cohn-leading-candidate-for-janet-yellen-replacement-federal-reserve-chair-2017-7">is reportedly considering Gary Cohn</a>, the former Goldman Sachs president who now leads Trump's Nation Economic Council, for the post.</p> <p>Yellen will probably demure, however, and simply say she's focused on the job at hand, as she did during her June press conference. This is set to be Yellen's last official testimony to Congress before the end of her term in February 2018.</p> <p>Yellen faces two days of hearings on Capitol Hill, the first before the House Financial Services Committee and the second in front of the Senate Banking Committee. Given political spin and her professional future are most likely off limits, here are five questions lawmakers might consider asking her.</p> <p><strong style="color: #000000;">1. Why are you raising interest rates if inflation is falling?</strong></p> <p><a href="http://www.businessinsider.com/fed-worried-about-inflation-below-target-2017-7">Fed officials are having more and more trouble justifying their outlook</a> for continued interest-rate increases this year and next in the face of inflation data that is slipping despite a historically low unemployment rate. Nor is Wall Street all that convinced, with many traders barely pricing in another rate hike this year.</p> <p>"A further retreat from the Committee's longer-run objective will prove increasingly difficult to disregard, particularly with both the annual rate in headline and core consumer inflation at near two-year lows," says Lindsey Piegza, the chief economist at Stifel Nicolaus.</p> <p><a href="http://www.businessinsider.com/fed-rate-hikes-clash-with-falling-inflation-2017-6">Given the room afforded by low inflation</a>, why not leave interest rates steady and wait to see solid wage increases before tightening monetary conditions further?</p> <p>Realistically, these are not questions Yellen will answer head-on.</p> <p>"Given the disagreement evident in the minutes of the last FOMC meeting, we don't expect any definitive steer from Yellen on when the balance sheet run-down will begin or whether to expect a September rate hike," Paul Ashworth of Capital Economics writes in a research note.</p> <p>Still, her tone on the economy will offer insight into how high a bar the Fed has to divert from its rate-hike path. It appears set pretty high.</p> <p><strong style="color: #000000;">2. What do you make of Republican efforts to dilute postcrisis financial rules?</strong></p> <p>As much as Yellen avoids talking politics, financial regulation is certainly part of her mandate, and she has already had much to say about Trump and the Republican Congress' efforts to reverse many of the postcrisis reforms intended to prevent another meltdown.</p> <p>"We lived through a devastating financial crisis. Most members of Congress and the public came away from that experience feeling that it was important to take a set of steps that would result in a safer and stronger financial system," <a href="http://www.businessinsider.com/feds-yellen-speaks-out-against-trumps-wall-street-deregulation-push-2017-2">she said in February during her latest testimony</a>. "I feel that we have done that."</p> <p>Yellen will most likely get asked about the issue again, given that many Republicans and Wall Street CEOs blame bank regulation for weak economic growth. Trump's board nominee for financial regulation, Randal Quarles, <a href="http://www.businessinsider.com/trump-picks-randal-quarles-2017-4">is a creature of Wall Street</a>, meaning Yellen must redouble her effort to push back against what is effectively an undoing of the work she and her colleagues have spent seven years undertaking.</p> <p><strong style="color: #000000;">3. What are you doing to boost financial stability and monitor market bubbles?</strong></p> <p>Fed officials have often cautioned against raising interest rates as a way to tame asset-market bubbles. But with inflation nowhere to be seen on the economic horizon, it's hard not to get the feeling that the Fed's resolve to keep raising borrowing costs after a prolonged period of zero interest rates is due in part to its fears of an ever-rallying stock market.</p> <p>Yet policymakers including Yellen have described such an approach &mdash; <a href="http://www.businessinsider.com/fed-moving-toward-march-rate-hike-considers-stocks-2017-3">slowing down the entire economy just to soften a single market</a> &mdash; as counterproductive. Instead, they have talked about using "other tools" to monitor and if needed restrain particular corners of finance. These policies are sometimes referred to as "macroprudential," and they could include things like loan-to-value restraints or curbs on leverage. But officials have never been specific about what they could do, or how. It's time for Yellen to provide more clarity on this front.</p> <p>Ethan Harris, an economist at Bank of America Merrill Lynch, sheds some light on this internal debate in a note to clients.</p> <p>"This year the Fed appears to have shifted to a 'hawkish bias,'" he said. "This was evident when the Fed hiked rates and signaled balance shrinkage at its June meeting despite weak growth and inflation data. Why the change of feathers?"</p> <p>Among other factors, he says, "the Fed is worried a bit about financial stability and overheating markets." He continued: "However, we put a relatively low weight on this argument. Chair Yellen and her allies have repeatedly underscored the idea that macro prudential policy is the first line of defense against asset bubbles and monetary policy is a distant 'Plan B.'"</p> <p><strong style="color: #000000;">4. Why are you tweaking the Fed's balance sheet now and where do you see it headed?</strong></p> <p>The Fed has complicated the outlook for official interest rates by announcing potentially imminent changes to its balance-sheet policy, which directly affects the amount of outstanding stimulus in the economy &mdash; at least according to standard monetary theory.</p> <p><a href="http://www.businessinsider.com/federal-reserve-leaves-questions-unanswered-with-plan-to-decrease-its-large-balance-sheet-2017-7">But it has left unanswered questions about when and to what extent</a> it will reduce bond buys, by gradually easing up on reinvesting proceeds of maturing bonds in its $4.5 trillion balance sheet back into the market.</p> <p>Lael Brainard, the Fed governor, said this week she was pretty much ready to announce a start to balance-sheet reduction, though she sounded more skeptical about continued interest-rate hikes. "I believe it would be appropriate soon to commence the gradual and predictable process of allowing the balance sheet to run off," <a href="https://www.federalreserve.gov/newsevents/speech/brainard20170530a.htm">Brainard said in a speech</a>.</p> <p>Lawmakers should ask Yellen for further clarification as to why the Fed has decided to further muddy the interest-rate outlook at a time when the political environment is itself a source of extreme uncertainty.</p> <p><strong>5. Any comments about your longtime colleague, the former Richmond Fed president Jeffrey Lacker?</strong></p> <p><a href="http://markets.businessinsider.com/news/bonds/richmond-fed-president-jeffrey-lacker-resigns-admits-leaking-information-2017-4-1001895776">Lacker resigned in April</a> after admitting to confirming confidential information to Medley Global Advisors, a consulting firm that then sold those details directly to clients in a private report. Yellen overlapped with Lacker at the Fed for over a decade, and yet she has never made a public statement about his resignation. Before becoming Fed chair she was vice chair and before that held a role parallel to Lacker's, as president of the San Francisco Fed.</p> <p>She and the Fed have also not addressed the main question arising from Lacker's resignation letter. <a href="http://www.businessinsider.com/lackers-resignation-raises-big-question-about-the-real-fed-leaker-2017-4">If he was merely confirming details Medley already had, who was the original leaker</a>? This is especially relevant because the House Financial Services Committee says it still has an open investigation into the matter. At a time of heightened scrutiny over ethical scandals, the Fed would only help itself by boosting transparency on this issue, if only to put it to rest.</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/civil-rights-movement-had-major-impact-on-us-economic-policy-2017-7" >Martin Luther King Jr. had an economic dream — and it changed the Federal Reserve forever</a></strong></p> <p><a href="http://www.businessinsider.com/janet-yellen-testifies-before-congress-on-monetary-policy-2017-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/economist-explains-trump-pulls-us-out-nafta-2017-6">An economist explains what could happen if Trump pulls the US out of NAFTA</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/jjSAmA2PkMI" height="1" width="1" alt=""/> Thomson Reuters http://www.businessinsider.com/janet-yellen-testifies-before-congress-on-monetary-policy-2017-7 http://markets.businessinsider.com/news/stocks/opening-bell-july-12-2017-2017-7-1002166613 http://feedproxy.google.com/~r/TheMoneyGame/~3/OzGr4fv_TXg/opening-bell-july-12-2017-2017-7-1002166613 Wed, 12 Jul 2017 06:56:00 -0400 Jonathan Garber <p><img style="float:right;" src="http://static3.businessinsider.com/image/5965ffbcabc1c821008b48d9-1778/rtx3b1f3.jpg" alt="Mitch McConnell" data-mce-source="Reuters/Carlos Barria" /></p><p>Here is what you need to know.</p> <p><strong><a href="http://www.businessinsider.com/citi-note-on-trump-impeachment-donald-trump-jr-russia-email-chain-2017-7">Trump's 'risk of impeachment' is higher</a>. </strong>Tina Fordham, Citi's chief global political analyst, believes that it's too early to say whether President Donald Trump will be impeached following the bombshell Donald Trump Jr. emails but that the "risk of impeachment proceedings is now higher than before."</p> <p><strong>Yellen begins her 2-day Humphrey-Hawkins testimony.</strong> Federal Reserve Chair Janet Yellen will appear before the House Financial Services Committee to give her semiannual monetary-policy report to Congress.</p> <p><strong><a href="http://www.businessinsider.com/gary-cohn-leading-candidate-for-janet-yellen-replacement-federal-reserve-chair-2017-7">Gary Cohn is reportedly the top pick to replace Yellen at the Fed</a>. </strong>If Cohn, the National Economic Council director and President Donald Trump's top economic adviser, wants the job, it's his to take, according to a report from Politico's Ben White and Victoria Guida.</p> <p><strong><a href="http://www.businessinsider.com/uk-unemployment-wage-growth-brexit-june-2017-7?r=UK&amp;IR=T">UK employment hits a record high</a>. </strong>Britain's headline employment rate grew to 74.9% in June, the highest since record keeping began in 1971. Wages jumped by 2%, but that's below the UK's 2.9% inflation rate.</p> <p><strong><a href="https://www.businessinsider.com.au/goldman-sachs-doesnt-think-the-bank-of-canada-will-hike-rates-this-week-2017-7">The Bank of Canada meets</a>. </strong>Goldman Sachs says Canada's central bank will keep policy on hold at Wednesday's meeting. "While certainly a close call, we expect the BoC to hike rates for the first time in October, not next week," Goldman strategist Michael Cahill wrote.</p> <p><strong><a href="http://markets.businessinsider.com/commodities/oil-price?type=WTI">Oil is higher for a 3rd straight day</a>. </strong>West Texas Intermediate crude oil trades up by 1.5% at $45.71 a barrel as traders await weekly inventory data.</p> <p><strong><a href="http://markets.businessinsider.com/news/stocks/snap-blue-apron-stock-price-biggest-ipos-of-2017-are-a-bust-2017-7-1002163921">The 2 biggest IPOs of 2017 are flops</a>. </strong>Both Snap and Blue Apron finished Tuesday's session below their initial-public-offering prices.</p> <p><strong><a href="http://www.businessinsider.com/r-apple-sets-up-china-data-center-to-meet-new-cybersecurity-rules-2017-7?IR=T">Apple builds its first data center in China</a>. </strong>The data center, which was built in a partnership with a local internet company, will help Apple comply with stricter cybersecurity laws introduced by Beijing, Reuters says.</p> <p><strong><a href="http://markets.businessinsider.com/indices">Stock markets around the world are mixed</a>. </strong>Australia's ASX (-0.98%) trailed in Asia, and Britain's FTSE (+0.94%) is out front in Europe. The S&amp;P 500 is set to open higher by 0.19% near 2,430.</p> <p><strong><a href="http://markets.businessinsider.com/economic-calendar#date=07/12/2017&amp;name=&amp;countries=us&amp;eventtypes=&amp;tab=1,2,3">US economic data is light</a>. </strong>The Fed's Beige Book is due out at 2 p.m. ET. The US 10-year yield is down by 2 basis points at 2.34%.</p><p><a href="http://markets.businessinsider.com/news/stocks/opening-bell-july-12-2017-2017-7-1002166613#comments">Join the conversation about this story &#187;</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/OzGr4fv_TXg" height="1" width="1" alt=""/> Reuters/Carlos Barria http://markets.businessinsider.com/news/stocks/opening-bell-july-12-2017-2017-7-1002166613 http://www.businessinsider.com/tech-stock-hedges-at-bull-market-high-2017-7 http://feedproxy.google.com/~r/TheMoneyGame/~3/RgF9fclRIRA/tech-stock-hedges-at-bull-market-high-2017-7 Wed, 12 Jul 2017 06:02:00 -0400 Joe Ciolli <p><img style="float:right;" src="http://static2.businessinsider.com/image/59652c31f50184ac018b5be7-2400/rtr25lvb.jpg" alt="fiery bull scared" data-mce-source="Reuters / Eloy Alonso" data-mce-caption="Tech stocks have helped extend the bull market, but their recent price action is scaring the daylights out of investors." /></p><p>Tech companies&nbsp;have been the story of the stock market in 2017, surging to new highs and outperforming the broader market, all while helping lead major indices into rarefied air.</p> <p>Now investors are starting to get <a href="http://www.businessinsider.com/traders-havent-been-this-nervous-about-tech-stocks-in-14-years-2017-6">spooked</a>.</p> <p>Which is not to say they're turning their backs entirely. The tech-heavy <a href="http://markets.businessinsider.com/index/Nasdaq_100">Nasdaq 100</a> index is still within 3% of a record reached a month ago. Rather, what traders are doing is loading up on hedges &mdash; and they're doing so in droves.</p> <p>Investors are paying the highest premium since late 2008 to protect against losses in an <a href="http://markets.businessinsider.com/etfs/PowerShares-QQQ-Trust-Series-1">exchange-traded fund tracking the Nasdaq 100</a>, relative to hedges on an <a href="http://markets.businessinsider.com/etfs/SPDR-S&amp;P-500-ETF-Trust">S&amp;P 500 ETF</a>, according to data compiled by Bloomberg.</p> <p>In other words, they haven't paid this much for downside protection on tech since the start of the bull market.</p> <p><img style="display: block; margin-left: auto; margin-right: auto;" src="http://static2.businessinsider.com/image/59652996d9fccd33028b5c51-1200/nasdaq-spx-etf-vol-spread.png" alt="nasdaq spx etf vol spread" data-mce-source="Business Insider / Andy Kiersz, data from Bloomberg" data-mce-caption="Traders are paying the most since late 2008 to protect against losses in tech stocks." /></p> <p>Given what's happened in recent weeks, it's not particularly surprising that investors are starting to feel uncertainty around tech stocks.</p> <p>On June 9, a Goldman Sachs report warned of complacency around <a href="http://markets.businessinsider.com/stock/FB-Quote">Facebook</a>, <a href="http://markets.businessinsider.com/stock/AAPL-Quote">Apple</a>, <a href="http://markets.businessinsider.com/stock/AMZN-Quote">Amazon</a>, <a href="http://markets.businessinsider.com/stock/MSFT-Quote">Microsoft</a>, and <a href="http://markets.businessinsider.com/stock/GOOGL-Quote">Google</a> &mdash; mega-cap tech stocks that have&nbsp;been responsible for pushing the sector higher. The Nasdaq 100 <a href="http://www.businessinsider.com/the-tech-stock-fairy-tale-is-heading-for-a-bad-ending-2017-6">sold off by more than 3%</a> over the subsequent&nbsp;two sessions, its biggest two-day decline in almost a year.</p> <p>Then, on June 29, tech companies in the S&amp;P 500 <a href="http://www.businessinsider.com/stock-market-today-tech-2017-6">dropped as much as 2.7%</a> amid renewed selling in the so-called FANG stocks &mdash; Facebook, Amazon, <a href="http://markets.businessinsider.com/stock/NFLX-Quote">Netflix</a> and Google.</p> <p>Even after&nbsp;those two weak patches, the Nasdaq 100 remains 18% higher for the year, more than double the return of the benchmark S&amp;P 500.</p> <p>Still,&nbsp;while the industry has shown remarkable resilience considering the magnitude of those selloffs, the seeds of caution appear to have been planted. Traders may remain bullish on tech, but they've made it clear they're&nbsp;going to cover their tracks should matters go awry.</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/stock-market-hottest-stocks-fang-faang-could-be-derailed-by-fed-2017-7" >Red-hot tech stocks could be derailed by the Fed</a></strong></p> <p><a href="http://www.businessinsider.com/tech-stock-hedges-at-bull-market-high-2017-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/economist-explains-trump-pulls-us-out-nafta-2017-6">An economist explains what could happen if Trump pulls the US out of NAFTA</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/RgF9fclRIRA" height="1" width="1" alt=""/> Reuters / Eloy Alonso http://www.businessinsider.com/tech-stock-hedges-at-bull-market-high-2017-7 http://www.businessinsider.com/finance-jobs-in-nyc-2017-7 http://feedproxy.google.com/~r/TheMoneyGame/~3/IE1341RVhrA/finance-jobs-in-nyc-2017-7 Wed, 12 Jul 2017 00:01:00 -0400 Frank Chaparro <p><img style="float:right;" src="http://static1.businessinsider.com/image/5965496d0976dbc4028b4706-1164/bank-teller-2.jpg" alt="bank teller" data-mce-source="Boston Globe / Contributor / Getty Images" /></p><p>There are thousands of available finance jobs available in New York City, and JPMorgan is trying to fill them with a new career search tool.&nbsp;</p> <p>On Wednesday, the bank&nbsp;and the Council for Adult and Experiential Learning (CAEL) unveiled <a href="https://bankingonmycareer.com/subsector/retail-personal">BankingOnMyCareer.com</a>, to help&nbsp;New Yorkers find "middle-skilled" financial services jobs. Such jobs typically require a bit more training than a high-school degree and a bit less training than a bachelor's degree. According to a news release, 7,500 of these jobs are open in New York City.&nbsp;</p> <p><span>&ldquo;We want New Yorkers to know there are thousands of good-paying job opportunities in the financial services sector just waiting to be filled by middle-skilled workers,&rdquo; said </span>Chauncy Lennon, head of workforce initiatives at JPMorgan Chase.</p> <p>Some of the available job opportunities on the site: anti-money laundering analyst, which pays $60,000 to $80,000 per year, and customer service representative, which pays $28,000 to $36,000 per year.&nbsp;</p> <p>BankingOnMyCareer.com is a collaboration between CAEL, CUNY, Partnership for NYC, a non-profit representing businesses in the Big Apple, and JPMorgan. JPMorgan's contribution of&nbsp;$580,000 for&nbsp;the project is a part of its $350 million commitment to address the so-called skills gap.&nbsp;</p> <p><span>Firms across the country are finding it difficult to fill positions that pay good salaries, but require more than a high-school degree.&nbsp;</span>This is an issue Jamie Dimon, JPMorgan CEO, has called attention to.</p> <p><span>"If you go to Texas, they need welders. If you go to other areas, they need people who can do construction, plumbing, electrical work. Business has to be involved locally with civic society, in this case schools, to get the kids trained to have a job," Dimon said in a recent interview with <a href="http://www.businessinsider.com/jamie-dimon-interview-2017-5">Business Insider's Matt Turner</a>.&nbsp;</span></p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/linkedin-jobs-advice-from-a-wall-streeter-2017-6" >A top Wall Street analyst explains why you should put just as much work into a LinkedIn message as an interview</a></strong></p> <p><a href="http://www.businessinsider.com/finance-jobs-in-nyc-2017-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/you-can-expect-a-major-department-store-to-fail-in-the-next-18-months-ryan-preclaw-2017-6">Barclays strategist: You can expect a major department store to fail in the next 18 months</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/IE1341RVhrA" height="1" width="1" alt=""/> Boston Globe / Contributor / Getty Images http://www.businessinsider.com/finance-jobs-in-nyc-2017-7 http://www.businessinsider.com/uber-q2-2017-still-sees-increased-ride-growth-2017-7 http://feedproxy.google.com/~r/TheMoneyGame/~3/eXKAyzn8qFs/uber-q2-2017-still-sees-increased-ride-growth-2017-7 Tue, 11 Jul 2017 19:53:25 -0400 Biz Carson <p><img style="float:right;" src="http://static2.businessinsider.com/image/58c27c78dd08950d488b4ba0-988/screen shot 2017-03-10 at 093211.png" alt="Travis Kalanick ping pong" data-mce-source="Spin" /></p><p>Uber's business appears to be surviving the <a href="http://www.businessinsider.com/uber-scandal-crisis-complete-timeline-2017-6">string of scandals</a> that have plagued the ride-hailing giant.</p> <p><a href="https://www.bloomberg.com/news/articles/2017-07-11/uber-is-said-to-see-financial-growth-possible-waymo-settlement">According to a report from Bloomberg</a>, the company told investors during a 15-minute call on Tuesday that its gross bookings for rides were up 10% from the previous quarter. Uber's losses also narrowed during the time, although the actual amount of the loss was not clear.</p> <p>A source familiar with the matter confirmed the Q2 performance results to Business Insider.</p> <p>The call was meant to soothe&nbsp;anxious&nbsp;investors after months of scandals have sent the $69 billion company into turmoil, culminating with <a href="http://www.businessinsider.com/uber-ceo-travis-kalanick-out-2017-6">CEO Travis Kalanick's resignation</a> last month.&nbsp;<span>Uber's long-time business chief Emil Michael was forced to resign last month. And Uber fired more than 20 employees as a result of an investigation into bad behavior in the workplace that includes&nbsp;sexual harassment.</span></p> <p>The internal turmoil, along with <a href="http://www.businessinsider.com/uber-scandal-crisis-complete-timeline-2017-6">a string of scandals</a> that reportedly caused <a href="http://www.businessinsider.com/over-200000-people-deleted-uber-after-deleteuber-2017-2">200,000&nbsp;users to delete their accounts </a>earlier in the year, have put Uber's business in the spotlight. To judge by the recent results however, the problems have not taken a major toll on Uber's financial performance.&nbsp;<span>&nbsp;Uber expects to hit over $8.25 billion in gross bookings &mdash; the total value of rides before Uber pays its drivers &mdash; in the last quarter, according to Bloomberg.</span></p> <p>Uber also hinted on the call that a settlement with Waymo, Google's self-driving car spinout, could be on the horizon, although&nbsp;nothing is currently in the works. A jury trial <a href="http://www.businessinsider.com/google-waymo-v-uber-case-explained-2017-5">in the trade theft lawsuit</a> is scheduled for October.</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/apple-is-hiring-a-barista-stellar-espresso-making-skills-are-a-must-2017-7" >Apple is hiring a barista – here's why it might be a very stressful job</a></strong></p> <p><a href="http://www.businessinsider.com/uber-q2-2017-still-sees-increased-ride-growth-2017-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/uber-ceo-travis-kalanick-resigns-scandals-harassment-2017-6">Travis Kalanick’s resignation as CEO of Uber comes after a firestorm of scandals</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/eXKAyzn8qFs" height="1" width="1" alt=""/> Spin http://www.businessinsider.com/uber-q2-2017-still-sees-increased-ride-growth-2017-7 http://www.businessinsider.com/gary-cohn-leading-candidate-for-janet-yellen-replacement-federal-reserve-chair-2017-7 http://feedproxy.google.com/~r/TheMoneyGame/~3/2GQEn_9bSsk/gary-cohn-leading-candidate-for-janet-yellen-replacement-federal-reserve-chair-2017-7 Tue, 11 Jul 2017 18:05:18 -0400 Bob Bryan <p><img style="float:right;" src="http://static1.businessinsider.com/image/593178c679474c17018b62ea-2400/gettyimages-670316470.jpg" alt="gary cohn" data-mce-source="Chip Somodevilla/Getty Images" data-mce-caption="Gary Cohn." /></p><p>National Economic Council director and President Donald Trump's top economic advisor, Gary Cohn, is the leading candidate to take over the top job at the Federal Reserve,&nbsp;<a href="http://www.politico.com/story/2017/07/11/trump-cohn-yellen-fed-240421">according to a report from Politico.</a></p> <p><a href="http://www.politico.com/story/2017/07/11/trump-cohn-yellen-fed-240421">Politico's Ben White and Victoria Guida said</a> Tuesday that if Cohn wants the job currently occupied by Chair Janet Yellen, it's his to take, according to four sources close to the replacement search.</p> <p>Cohn had been reportedly leading up the search for someone to take over for Yellen&nbsp;when her term expires in February 2018. Reports also suggested that <a href="http://www.businessinsider.com/axios-report-gary-cohn-wants-federal-reserve-chair-janet-yellen-2017-5">Cohn may be interested in the job.</a></p> <p>Cohn, the former COO at Goldman Sachs, is currently helping to spearhead the White House's efforts on tax reform and could pass on the Fed job if he feels that task is not completed, according to the report.</p> <p>As noted by Politico, Cohn&nbsp;would be the first non-economist Fed chair since the 1970s.</p> <p>The Trump administration announced&nbsp;its first nomination for the Fed's Board of Governors on Monday. Randy Quarles was nominated to be vice chairman of supervision, a key role overseeing bank regulation.</p> <h3><a href="http://www.politico.com/story/2017/07/11/trump-cohn-yellen-fed-240421">You can read the full report at Politico&raquo;</a></h3><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/civil-rights-movement-had-major-impact-on-us-economic-policy-2017-7" >Martin Luther King Jr. had an economic dream — and it changed the Federal Reserve forever</a></strong></p> <p><a href="http://www.businessinsider.com/gary-cohn-leading-candidate-for-janet-yellen-replacement-federal-reserve-chair-2017-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/economist-explains-trump-pulls-us-out-nafta-2017-6">An economist explains what could happen if Trump pulls the US out of NAFTA</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/2GQEn_9bSsk" height="1" width="1" alt=""/> Chip Somodevilla/Getty Images http://www.businessinsider.com/gary-cohn-leading-candidate-for-janet-yellen-replacement-federal-reserve-chair-2017-7 http://www.businessinsider.com/theranos-subleasing-palo-alto-headquarters-2017-7 http://feedproxy.google.com/~r/TheMoneyGame/~3/15blPdGAOwE/theranos-subleasing-palo-alto-headquarters-2017-7 Tue, 11 Jul 2017 17:53:29 -0400 Lydia Ramsey <p><img style="float:right;" src="http://static1.businessinsider.com/image/5965439c0976dbc4028b46be-1000/theranospaloaltohq1.jpeg" alt="Theranos PaloAlto hq" data-mce-source="Theranos" /></p><p></p> <p>Theranos is considering renting out all or part of its headquarters in Palo Alto, California.&nbsp;</p> <p>According to <a href="http://www.loopnet.com/xNet/Looplink/Profile/Profile.aspx?LID=20377970&amp;STID=CB0003&amp;LL=true">a listing by real estate company CBRE</a>, there are four spaces available for lease in the 116,000 square foot facility.&nbsp;</p> <p>"Theranos continues to focus on effectively managing our resources as we progress towards the commercialization of the miniLab platform. Accordingly, the Company has retained CBRE to explore subleasing options for all or portions of our Palo Alto facility," the company&nbsp;said in a statement. "Manufacturing will continue to be located in the Newark, CA facility."</p> <p>If Theranos were able to sublease the entire Palo Alto location, the employees&nbsp;located there would likely move to the Newark facility, a Theranos spokeswoman told Business Insider. In January, Theranos <a href="http://www.businessinsider.com/theranos-layoffs-cutting-41-percent-staff">laid off 41% of its staff,</a> with 220 remaining.&nbsp;</p> <p>The building, located in Stanford Research Park <a href="http://stanfordresearchpark.com/projects/1701-page-mill-road">was completed in September 2014</a>.&nbsp;</p> <p>Business Insider first spotted the listing in a tweet from <a href="https://twitter.com/JohnCarreyrou/status/884881746214490114">Wall Street Journal reporter John Carreyrou</a>, whose investigation into the company <a href="http://www.wsj.com/articles/theranos-has-struggled-with-blood-tests-1444881901">starting in October 2015</a> placed the company under scrutiny, particularly around the accuracy of its blood test. Eventually, one of the company's lab-testing locations was shut down, and its founder &mdash; Elizabeth Holmes &mdash; was originally barred for two years from running a clinical lab, <a href="http://www.businessinsider.com/theranos-settles-with-cms-for-30000-2017-4">later settling with CMS</a>, the&nbsp;<span>government agency responsible for regulating blood-testing labs by agreeing to not own or operate a clinical lab within the next two years</span>.</p> <p>Until&nbsp;October 2016, Theranos's business model was based around the idea that it ran blood tests using proprietary technology that requires only a small amount of blood. Since then, the company has pivoted to focus solely on the company's miniLab technology.</p> <p>The news of the possible sublease comes after a&nbsp;series of settlements between Theranos and investors, as well as the state of Arizona.&nbsp;</p> <ul> <li>On April 17, <a href="http://www.businessinsider.com/theranos-settles-with-cms-for-30000-2017-4">Theranos said that it had settled up with&nbsp;Centers for Medicare and Medicaid Services</a>, the government agency responsible for regulating blood-testing labs. As part of the settlement, Theranos has to pay $30,000, and the company won't be able to own or operate a clinical lab within the next two years. In return, the CMS is no longer revoking Theranos's CLIA certification, which is needed to run a blood-testing lab.&nbsp;</li> <li>On April 18, Theranos <a href="http://www.businessinsider.com/theranos-reaches-465-million-settlement-with-arizona-attorney-general-2017-4">agreed to pay Arizona $4.65 million</a> to refund anyone who paid to take one of Theranos's blood tests, and will also pay $225,000 to cover civil penalties and attorneys' fees.</li> <li>And on May 1, Theranos <a href="http://www.businessinsider.com/theranos-settles-partner-fund-management-lawsuits-2017-5">settled two&nbsp;lawsuits </a>with Partner Fund Management, a hedge fund that invested $96.1 million in the company.</li> <li>The&nbsp;<a href="https://www.wsj.com/articles/theranos-walgreens-reach-deal-to-settle-lawsuit-1498037580">Wall Street Journal reported</a>&nbsp;that Theranos is also close to reaching a settlement with&nbsp;Walgreens.&nbsp;In November, Walgreens filed a $140 million lawsuit against Theranos, accusing Theranos of a breach of&nbsp;contract. Walgreens ended&nbsp;its relationship with Theranos <a href="http://www.businessinsider.com/what-theranos-has-left-after-terminated-walgreens-deal-2016-6">in June</a>&nbsp;2016. It had operated Theranos Wellness Centers, where people could go have their blood tested in the company's stores.</li> </ul><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/nomad-health-freelance-health-care-work-for-nurses-2017-7" >A startup that's tackling a massive healthcare crisis is moving in on a $7 billion market</a></strong></p> <p><strong>DON'T MISS:&nbsp;<a href="http://www.businessinsider.com/theranos-reportedly-had-200-million-in-cash-at-end-of-2016-2017-2" >We just got a better idea of how much cash Theranos has left in the bank</a></strong></p> <p><a href="http://www.businessinsider.com/theranos-subleasing-palo-alto-headquarters-2017-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/guide-good-bad-vitamins-what-should-take-zinc-2015-11">These are the only vitamins you should be taking — and the ones you should skip</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/15blPdGAOwE" height="1" width="1" alt=""/> Theranos http://www.businessinsider.com/theranos-subleasing-palo-alto-headquarters-2017-7 http://www.businessinsider.com/citi-note-on-trump-impeachment-donald-trump-jr-russia-email-chain-2017-7 http://feedproxy.google.com/~r/TheMoneyGame/~3/kYKM7qfATtw/citi-note-on-trump-impeachment-donald-trump-jr-russia-email-chain-2017-7 Tue, 11 Jul 2017 16:38:00 -0400 Bob Bryan <p><img style="float:right;" src="http://static2.businessinsider.com/image/596534e1abc1c81a008b45eb-1399/gettyimages-810949478.jpg" alt="donald trump" data-mce-source="Getty Images/Pool" /></p><p>Citi thinks people should start to think about the I-word when it comes to Donald Trump's presidency: impeachment.</p> <p>Tina Fordham, the chief global political analyst at Citi, said the possibility of impeachment was still low. But after <a href="http://www.businessinsider.com/donald-trump-jr-posted-rob-goldstone-emails-russia-2017-7">the release of emails between Donald Trump Jr.</a> and a music publicist believed to have helped arrange a June 2016 meeting with a Russian attorney in which Trump Jr. was hoping to get damaging information about Hillary Clinton, the prospects of a Trump ouster are on the rise, she said.</p> <p>"Do these most recent developments, which suggest that key Trump advisers, including his son Donald Trump Jr. and son-in-law Jared Kushner met with a Russian lawyer (who had previously lobbied in Washington against the 2012 Magnitsky sanctions act), change the potential for impeachment?" Fordham wrote in a note. "It is of course too soon to say, but we believe the risk of impeachment proceedings is now higher than before, even if still not our base case."</p> <p>The biggest thing that would be in the way of impeachment is congressional Republicans &mdash; even though GOP lawmakers have said they are "troubled" by the Trump-Russia headlines, they're unlikely to impeach Trump while they have a majority in both chambers, Fordham said.</p> <p>"With this in mind, despite remarks from senior congressional Republicans suggesting unease with the Trump administration, it would be highly unusual and indeed likely politically costly to the party's electoral prospects to pursue impeachment proceedings against a president of their own party, particularly with midterm elections a little over a year away," Fordham said.</p> <p>Despite this, Tuesday's news could mean Republicans' legislative agenda will <a href="http://www.businessinsider.com/donald-trump-jr-russia-emails-impact-on-health-care-bill-tax-cuts-2017-7">stay stuck in place</a>&mdash; that items like tax reform, economic stimulus, and the repeal and replacement of the Affordable Care Act could be further off than the GOP wants.</p> <p>The continued Russia-related headlines, according to the Citi analyst, could also damage Republican brand in future elections.</p> <p>"Impeachment proceedings may never be brought, but the risk of reputational damage to the Republican Party and those members of Congress up for re-election in November 28 midterms will be a further risk factor to consider," Fordham said.</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/donald-trump-jr-russia-emails-impact-on-health-care-bill-tax-cuts-2017-7" >The 'explosive' Donald Trump Jr. emails could torpedo Republicans' plans</a></strong></p> <p><a href="http://www.businessinsider.com/citi-note-on-trump-impeachment-donald-trump-jr-russia-email-chain-2017-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/economist-explains-trump-pulls-us-out-nafta-2017-6">An economist explains what could happen if Trump pulls the US out of NAFTA</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/kYKM7qfATtw" height="1" width="1" alt=""/> Getty Images/Pool http://www.businessinsider.com/citi-note-on-trump-impeachment-donald-trump-jr-russia-email-chain-2017-7 http://www.businessinsider.com/twitter-hires-intuits-ned-segal-to-be-new-cfo-2017-7 http://feedproxy.google.com/~r/TheMoneyGame/~3/Xi2AMhwed-A/twitter-hires-intuits-ned-segal-to-be-new-cfo-2017-7 Tue, 11 Jul 2017 16:10:49 -0400 Alex Heath <p><img style="float:right;" src="http://static5.businessinsider.com/image/596531700976db1b008b45cd-400/bo0njk9i400x400.jpg" alt="Ned Segall" data-mce-source="Ned Segall / Twitter" data-mce-caption="Ned Segall."></p><p></p> <p><a href="http://markets.businessinsider.com/stock/TWTR-Quote">Twitter</a> has a new Chief Financial Officer: Ned Segal.</p> <p>CEO Jack Dorsey <a href="https://twitter.com/jack/status/884866340401459200">announced the news in a tweet</a> on Tuesday. Segal was previously the SVP of Finance at software maker Intuit. He starts at Twitter in late August, according to a filing <a href="https://www.sec.gov/Archives/edgar/data/1418091/000156459017013336/twtr-8k_20170711.htm">with the SEC</a>.</p> <p>Twitter is giving Segal roughly $22 million in stock vesting over four years, with $15 million in RSU grants and roughly $7 million in performance-based RSUs.</p> <p>His annual salary will be $500,000 and he is receiving a signing bonus of $300,000.</p> <p>Shares of Twitter, which finished up 3% in regular trading before the announcement, were more or less unchanged in after-hours trading.</p> <p><span>Segal </span><span>will take over the CFO role from Anthony Noto, who has been</span><span> </span><a href="http://www.businessinsider.com/anthony-noto-big-pay-package-as-twitter-new-coo-2016-11">serving double-duty as COO and CFO since November.</a> Noto will stay on as full-time COO, a role he filled <a href="http://www.businessinsider.com/twitter-coo-adam-bain-is-stepping-down-2016-11">when Adam Bain left last year.</a></p> <p>Like Noto, Segal is a veteran of Goldman Sachs. Both men worked in the investment banking division together before eventually joining tech companies.</p> <p>Segal is entering the challenging role of steering Twitter's finances. The company reported its <a href="http://www.businessinsider.com/twitter-reports-q1-earnings-results-2017-4">first ever year-over-year decline in revenue last quarter</a> and cautioned that it expects revenue growth to continue to "meaningfully lag audience growth in 2017."</p> <p>Twitter's stock has lost three quarter of its value during the past few years as investors have fretted about the company's slowing user growth and seemingly constant changes in its leadership team.</p> <div> <blockquote class="twitter-tweet" lang="en"> <p> Believe <a href="https://twitter.com/Twitter">@Twitter</a> has an important mission and tremendous potential; can’t wait to work w/ <a href="https://twitter.com/jack">@jack</a> and the awesome leadership team! </p>— Ned Segal (@nedsegal) <a href="https://twitter.com/mims/statuses/884867209641590784">July 11, 2017</a> </blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> </div><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/rob-kardashian-twitter-account-posts-blac-chyna-revenge-porn-isnt-suspended-2017-7" >Twitter let a celebrity with millions of followers post revenge porn for 30 minutes before it was taken down</a></strong></p> <p><a href="http://www.businessinsider.com/twitter-hires-intuits-ned-segal-to-be-new-cfo-2017-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/trump-president-twitter-buzz-aldrin-nasa-space-2017-7">People on Twitter are loving how baffled Buzz Aldrin appeared by Trump's 'space' talk</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/Xi2AMhwed-A" height="1" width="1" alt=""/> Ned Segall / Twitter http://www.businessinsider.com/twitter-hires-intuits-ned-segal-to-be-new-cfo-2017-7 http://www.businessinsider.com/stock-market-today-july-11-2017-7 http://feedproxy.google.com/~r/TheMoneyGame/~3/0zXWf0S93EU/stock-market-today-july-11-2017-7 Tue, 11 Jul 2017 16:00:40 -0400 Akin Oyedele <p><img style="float:right;" src="http://static4.businessinsider.com/image/5627869b9dd7cc16008c37ab-2352/gettyimages-479131408.jpg" alt="bounce trampoline" data-mce-source="Taylor Weidman/Getty Images" /></p><p>Stocks slid then bounced back after&nbsp;<a href="http://www.businessinsider.com/donald-trump-jr-posted-rob-goldstone-emails-russia-2017-7">Donald Trump Jr. released emails</a> showing he hoped to get dirt on Hillary Clinton in an arranged meeting with a Russian attorney in 2016.&nbsp;</p> <p>The S&amp;P 500 financials index fell the most, by more than 1%. Companies paying the most taxes fell as much as 0.8% before paring that loss.&nbsp;</p> <p>Here's the final scoreboard:&nbsp;</p> <ul> <li><strong>Dow:</strong> 21,409.07, +0.55, (0.00%)</li> <li><strong>S&amp;P 500:</strong>&nbsp;2,425.53, -1.90, (-0.08%)</li> <li><strong>Nasdaq:</strong>&nbsp;6,193.30, +16.91, (0.27%)</li> <li><strong>10-year yield:</strong> 2.361%, -0.010</li> </ul> <ol> <li><a href="http://markets.businessinsider.com/news/stocks/snap-stock-price-morgan-stanley-the-4-things-stopping-it-from-soaring-2017-7-1002164298">Morgan Stanley&nbsp;changed its tune on Snap</a>. The lead underwriter for the&nbsp;IPO cut its price target and said in a note, "<span>We have been wrong about SNAP's ability to innovate and improve its ad product this year&nbsp;..."</span></li> <li><a href="http://markets.businessinsider.com/news/stocks/blue-apron-stock-price-just-received-its-first-wall-street-analyst-rating-and-its-not-pretty-2017-7-1002164029">Blue Apron received its first Wall Street analyst rating: $2 a share. The stock opened at $10 at its IPO</a>.&nbsp;<span>Chuck Cerankosky of Northcoast Research said&nbsp;sales growth at Blue Apron is dependent on discounts and isn't sustainable.</span></li> <li><span><a href="http://www.businessinsider.com/mcconnell-delays-congress-august-recess-health-care-bill-2017-7">Senate Majority Leader Mitch McConnell said he&nbsp;will delay the start of the typically&nbsp;month-long August recess by two weeks to try to finish work on the GOP healthcare bill and other&nbsp;legislative items</a>.&nbsp;The Better Care Reconciliation Act has stalled as members from the conservative and moderate wings of the GOP are unable to agree on key elements.</span></li> <li><span><a href="http://www.businessinsider.com/pepsi-earnings-q2-2017-2017-7">PepsiCo beat on quarterly earnings</a>. The company was helped by higher pricing of its sodas and snack foods sold in North America and the sale of its minority stake in British bottler Britvic Plc.</span></li> </ol> <p><strong>Additionally:&nbsp;</strong></p> <p><span><a href="http://www.businessinsider.com/dimon-central-bankers-are-facing-an-unprecedented-challenge-2017-7">DIMON: Central bankers are facing an unprecedented and potentially 'disruptive' challenge</a></span></p> <p><span><a href="http://www.businessinsider.com/federal-reserve-leaves-questions-unanswered-with-plan-to-decrease-its-large-balance-sheet-2017-7">The Fed&rsquo;s plan to shrink its $4.5 trillion balance sheet leaves open 2 crucial issues</a></span></p> <p><span><a href="http://www.businessinsider.com/stock-market-hottest-stocks-fang-faang-could-be-derailed-by-fed-2017-7">Red-hot tech stocks could be derailed by the Fed</a></span></p> <p><span><a href="http://www.businessinsider.com/trump-drug-refund-policy-doesnt-work-2017-7">One of Trump's best-sounding proposals to control drug pricing is a dud</a></span></p> <p><span><a href="http://www.businessinsider.com/bitcoin-price-blackrock-2017-7">BLACKROCK: The bitcoin chart looks 'pretty scary'</a></span></p> <p><a href="http://www.businessinsider.com/best-amazon-prime-day-deals-2017">These are the Amazon Prime Day deals worth caring about this year</a></p><p><a href="http://www.businessinsider.com/stock-market-today-july-11-2017-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/economist-explains-trump-pulls-us-out-nafta-2017-6">An economist explains what could happen if Trump pulls the US out of NAFTA</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/0zXWf0S93EU" height="1" width="1" alt=""/> Taylor Weidman/Getty Images http://www.businessinsider.com/stock-market-today-july-11-2017-7 http://www.businessinsider.com/you-can-literally-buy-defaulted-corporate-debt-on-chinas-amazon-2017-7 http://feedproxy.google.com/~r/TheMoneyGame/~3/5l9tmreTiXc/you-can-literally-buy-defaulted-corporate-debt-on-chinas-amazon-2017-7 Tue, 11 Jul 2017 14:59:52 -0400 Linette Lopez <p><img style="float:right;" src="http://static4.businessinsider.com/image/59651a42f50184b3078b5a98-647/us-apparel-group-wants-taobao-on-ustrs-notorious-list.jpg" alt="A customer points at a screen displaying a website of Alibaba's Taobao at a rural service centre in Yuzhao Village, Tonglu, Zhejiang province, China, July 20, 2015. REUTERS/Aly Song" data-mce-source="Thomson Reuters" data-mce-caption="Customer points at a screen displaying a website of Alibaba's Taobao at a rural service centre in Yuzhao Village, Tonglu, Zhejiang province, China" /></p><p>And we think Amazon Prime Day is a big deal.</p> <p>On Taobao, China's largest e-commerce site, you can buy anything you need (or don't need), just like on Amazon here in the states. However, in China "everything" includes distressed debt from Chinese corporations that have defaulted on their payments.</p> <p><a href="https://www.bloomberg.com/news/articles/2017-07-10/in-china-shoppers-can-buy-bad-loans-online-with-their-groceries">According to Bloomberg,</a>&nbsp;a&nbsp;<span>Zhejiang-based steelmaker is selling its defaulted debt on the platform thanks to a collaboration between Taobao's parent company, Alibaba, and China Cinda Asset Management Co., a distressed debt firm.</span></p> <p><span>So for&nbsp;$610,000 you can bid on the steelmaker's defaulted debt. Ultimately you do have to contact Cinda and have them evaluate you to finish the transaction.&nbsp;</span><span>Once you do, though, BAM. You're a distressed debt investor.</span></p> <p>What a time to be alive.</p> <p>Bloomberg reports that situations like this have become more common in China. Twenty financial firms have signed deals to sell products on Taobao, and that isn't surprising. The country is using the current moment of global economic stability to tackle the debt that has built up in its corporate and banking systems, and the government wants financial firms to do as much of it as possible themselves.</p> <p>This has turned distressed corporate debt into the hottest financial product in the country, with both foreign and domestic buyers. Prices are up 30% this year, <a href="https://www.bloomberg.com/news/articles/2017-06-21/china-bad-debt-prices-surge-30-as-new-gold-rush-gets-under-way">according to&nbsp;<span>Belos Capital Asia</span>.</a></p> <p>Of course, the question is whether or not passing non-performing loans on to retail investors should be part of the solution to this problem. Beijing is likely wondering the same thing.</p> <p>Earlier this month authorities finally admitted that they had taken&nbsp;<span>Wu Xiaohui, the chairman of massive insurance firm Anbang Insurance, into custody for questioning.</span></p> <p><span>Anbang has become known in recent years for high-profile overseas acquisitions, beating out several peers in China's market doing the very same thing. But Anbang is different in one way. It has "the closest relationship with retail investors through its insurance products," according to a recent Credit Suisse report. It also owns a 20% stake in the country's largest private bank, China Minsheng Bank.</span></p> <p><span>In other words, any product that's making its way down to everyday Chinese consumers is getting the eye from Beijing.&nbsp;</span></p> <p><span>Enjoy your Prime Day, buy something nice.</span></p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/a-new-china-worry-is-taking-over-wall-street-2017-7" >A new China worry is taking over Wall Street</a></strong></p> <p><a href="http://www.businessinsider.com/you-can-literally-buy-defaulted-corporate-debt-on-chinas-amazon-2017-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/henry-blodget-tech-market-nowhere-near-dotcom-days-2017-6">HENRY BLODGET: Tech market is nowhere near the dotcom days</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/5l9tmreTiXc" height="1" width="1" alt=""/> Thomson Reuters http://www.businessinsider.com/you-can-literally-buy-defaulted-corporate-debt-on-chinas-amazon-2017-7 http://www.businessinsider.com/the-tesla-model-3-vs-cheaper-cars-2017-7 http://feedproxy.google.com/~r/TheMoneyGame/~3/zsYLRWvB0yg/the-tesla-model-3-vs-cheaper-cars-2017-7 Tue, 11 Jul 2017 14:53:02 -0400 Matthew DeBord <p><img src="http://static5.businessinsider.com/image/5961b60af5018422008b5053-2000/teslamodel32.png" alt="Tesla Model 3" data-mce-source="Screenshot via Elon Musk" data-mce-caption="The first production Tesla Model 3, unveiled by Tesla CEO Elon Musk, July 8, 2017." data-link="https://twitter.com/elonmusk/status/883910005644251141" /></p><p>With the $35,000 Tesla Model 3 starting to roll of the assembly in California this month, <a href="https://twitter.com/DonDraperClone/status/884766964266217472">some people are noticing its resemblance to other, cheaper vehicles</a>.</p> <p>First off, this shouldn't be surprising. The Model 3 costs $10,000 (or more) above what you could shell out for a perfectly serviceable compact mass-market sedan. Most of the extra expense is in the all-electric Model 3's large battery, which can deliver at least 200 miles of range, according to Tesla.</p> <p>A 2017 Mazda 3, for example, shares some design elements with the Model 3, but it goes for less than $20,000 in its base version, which of course burns gas. (And once you get past the profile, the resemblance between the Mazda 3 and the Model 3 ends.)</p> <p><img src="http://static2.businessinsider.com/image/596519daf50184ac018b5af4-2400/2016mazda3a2q9824.jpg" alt="2016 Mazda 3" data-mce-source="Mazda" /></p> <p>One might step back from this and say, "Wait a sec, why am I paying so much more for this allegedly groundbreaking car that looks like a lot of other cars?"</p> <p>But that's really the point. Tesla's&nbsp;<em>don't&nbsp;</em>look radically different from most other vehicles on the road. They might have some radical features, such as the featureless front end and the "falcon wing" doors on the Model X SUV. But generally speaking, Tesla and its head designer, Franz Von Holzhausen, went with&nbsp;a versatile, scalable, fairly minimalist approach with the vehicles.&nbsp;</p> <p><img src="http://static2.businessinsider.com/image/55ce0061371d2254008bfc96-2400/img3056.jpg" alt="BMW i3" data-mce-source="Matthew DeBord/Business Insider" /></p> <p>This was for two reasons. First, Tesla knew it wasn't going to have model years and didn't intend to update its designs on the same schedule are a big carmaker (every five to seven years). Second, Tesla didn't want its cars to look like futuremobiles, a la the BMW i3. Especially with the Model 3, Tesla wanted to sell cars to people who were looking at the BMW 3 Series and the Audi A3, as well as Toyota Corollas.</p> <p><img src="http://static2.businessinsider.com/image/596518b5d9fccd4b018b5b9c-2107/2017mazda305.jpg" alt="2017 Mazda 3" data-mce-source="Mazda" /></p> <p>In fact, Tesla's use of fastback rear design, eliminating the traditional truck, has been influential. Numerous small sedans now feature fastback silhouettes. The Mazda 3&nbsp;is just one instance, although there's also a 5-door hatch version of the vehicle, with a sort of fastback-hatchback rear end.</p> <p>For what it's worth, this design provides good aerodynamics, which enhances electric-vehicle range, and creates better vertical rear cargo area than a trunk.</p> <p>Tesla wouldn't have succeeded as well as it has if it went too far toward the future with its designs. By aiming for the here and now, it's done far better than it would have otherwise.</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/why-tesla-is-not-the-next-apple-2017-5" >Here's why Tesla is not the next Apple</a></strong></p> <p><a href="http://www.businessinsider.com/the-tesla-model-3-vs-cheaper-cars-2017-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/teslas-model-3-friday-elon-musk-fidelity-otc-gavin-baker-2017-7">Tesla’s Model 3 is coming on Friday and it’s going to be the ‘largest consumer-product launch ever’</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/zsYLRWvB0yg" height="1" width="1" alt=""/> Screenshot via Elon Musk http://www.businessinsider.com/the-tesla-model-3-vs-cheaper-cars-2017-7 http://www.businessinsider.com/mcconnell-delays-congress-august-recess-health-care-bill-2017-7 http://feedproxy.google.com/~r/TheMoneyGame/~3/MoUi7DJnUcQ/mcconnell-delays-congress-august-recess-health-care-bill-2017-7 Tue, 11 Jul 2017 14:06:06 -0400 Bob Bryan <p><img style="float:right;" src="http://static4.businessinsider.com/image/5952bdd3a3630f950f8b545b-1778/ap17178698126668.jpg" alt="Mitch McConnell" data-mce-source="AP" data-mce-caption="Mitch McConnell" /></p><p> Senate Majority Leader Mitch McConnell on Tuesday said he would delay the start of the Senate's typically monthlong August recess by two weeks to try to finish work on the GOP healthcare bill and other legislative items.</p> <p>McConnell pinned part of the blame on Democrats' obstruction, a talking point the White House and Republican lawmakers have amplified in recent weeks.</p> <p>"In order to provide more time to complete action on important legislative items and process nominees that have been stalled by a lack of cooperation from our friends across the aisle, the Senate will delay the start of the August recess until the third week of August," McConnell said in a statement.</p> <p>The Senate healthcare bill, the Better Care Reconciliation Act, has stalled as members from the conservative and moderate wings of the GOP are unable to come to an agreement on key elements.</p> <p>Several Republican senators had <a href="http://www.businessinsider.com/should-gop-cancel-august-recess-for-health-care-bill-2017-7">called for the delay of the August recess</a> to finish work on the BCRA and other items like raising the debt ceiling and funding the government. A group of 10 GOP lawmakers led by Sen. David Perdue of Georgia wrote a letter on June 30 asking for a delay.</p> <p>The group applauded the choice in a statement from Perdue's office on Tuesday.</p> <p>"We are glad leadership took our concerns into consideration," it said. "It is time to get results for the American people."</p> <p>The conservative House Freedom Caucus, which has pushed for the House to delay its recess also, echoed that sentiment in a statement after the announcement.</p> <p>"We applaud Senate Majority Leader Mitch McConnell's decision to keep the Senate in session in August to accomplish the important work of the American people," it said. "We call on House leadership to do the same. There are too many unresolved issues before Congress including tax reform, health care, the debt ceiling, government funding, and more to leave Washington before the people's work is done."</p> <p>While talking to reporters after the announcement, McConnell said a revised version of the BCRA would be released Thursday and that a vote would come next week. The majority leader also said the debt ceiling could be addressed in the first two weeks of August. According to the Congressional Budget Office, the debt ceiling will be breached sometime in mid-October.</p> <h3>Here's the full statement from McConnell:</h3> <p style="padding-left: 30px;">"Once the Senate completes its work on health care reform, we will turn to other important issues including the National Defense Authorization Act and the backlog of critical nominations that have been mindlessly stalled by Democrats.</p> <p style="padding-left: 30px;">"In order to provide more time to complete action on important legislative items and process nominees that have been stalled by a lack of cooperation from our friends across the aisle, the Senate will delay the start of the August recess until the third week of August."</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/donald-trump-jr-russia-emails-impact-on-health-care-bill-tax-cuts-2017-7" >The 'explosive' Donald Trump Jr. emails could torpedo Republicans' plans</a></strong></p> <p><a href="http://www.businessinsider.com/mcconnell-delays-congress-august-recess-health-care-bill-2017-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/jared-kushner-spoke-first-time-since-being-appointed-trump-administration-president-2017-6">Watch Jared Kushner speak publicly for the first time since joining Trump's administration</a></p><img src="http://feeds.feedburner.com/~r/TheMoneyGame/~4/MoUi7DJnUcQ" height="1" width="1" alt=""/> AP http://www.businessinsider.com/mcconnell-delays-congress-august-recess-health-care-bill-2017-7