Mnuchin told CNBC that he's confident President Donald Trump and President Xi Jinping can make progress in stalled trade talks.World Economyread more
U.S. stock index futures jumped Wednesday morning after Treasury Secretary Steven Mnuchin told CNBC that the U.S. and China were almost there on a trade deal.US Marketsread more
President Donald Trump's administration hopes additional sanctions on Iran will force the country to negotiate.Politicsread more
Democrats want Mueller's testimony on his probe into Russian interference in the 2016 election and Trump's efforts to influence it.Politicsread more
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Bitcoin surged as high as $12,919 in early morning trade Wednesday, to its highest level since January 2018.Technologyread more
The trade war between Beijing and Washington appears to have depressed Chinese property purchases in the United States. China's own actions may also be playing a role.Real Estateread more
Tesla CEO Elon Musk sent out another email to his employees, pushing them to aim for a record number of vehicle deliveries to end the second quarter of 2019.Technologyread more
More than 300 companies are talking to government officials in Washington about how detrimental the trade war is.Marketsread more
The Senate is expected to pass its own version of the border aid legislation, while the Trump administration has threatened to veto both bills.Politicsread more
Some 4 million people have fled the South American country since 2015 amid an economic meltdown.World Politicsread more
General Electric — the longest-tenured member of the Dow Jones industrial average and for decades a bellwether of the American economy and stock market — has taken its investors on a round trip to one of the darkest days in financial history.
With its relentless decline this year below $24, the stock is now trading below its closing price on the day Lehman Brothers filed for bankruptcy, Sept. 15, 2008. That was the day the financial system began to seize up and ultimately threatened the ability even of GE — long a triple-A rated corporate borrower — to access the capital markets and cover its bills.
Sure, GE stock melted down from that day through the early months of 2009, when it briefly traded beneath $6. Since the ultimate bear-market bottom on March 9, 2009, GE stock has climbed 14.7 percent annualized, solidly below the 's 16.4 percent annual gain. Including dividends, GE has lagged by about 0.7 percentage points per year, but the shares have been dead money the last three years.
Over that span, GE has exited the financial business as it rejiggered its corporate portfolio. Critics argue the company has made poor capital-allocation decisions under recently retired CEO Jeff Immelt, perhaps overpaying for some health-care and power-generation businesses while entering the energy industry just after its peak, with the purchase of Baker Hughes.
This week, JPMorgan analyst Stephen Tusa reiterated his negative underweight rating on the stock and set a new $22 price target, arguing that new CEO John Flannery would soon "reset" earnings expectations "to a lower number off of which future growth is uncertain and realistically below average." He further suggested the $24 share-price level could act as a ceiling, and that "investable fair value" might be a price "in the high teens."
The stock, already disliked by Wall Street and largely held by retail investors, would sport a dividend yield above 5 percent if it traded down to $19, assuming no change in the company's payout level. If so, GE shares would truly have sunk to a level with such a high dividend yield that it typically reflects fears of a company's structural decline or negligible long-term growth potential.