Corporate earnings forecasts for the second quarter were lowered so much that companies are easily beating them.Market Insiderread more
The central bank is not normally in the business of easing into an economy that is showing few signs of a recession, generally holding fire until more pronounced signs of a...The Fedread more
The report is a chance for Netflix to prove how it plans to compete against legacy media companies that are now expanding into streaming.Technologyread more
IBM is expected to report declining revenue for the fourth quarter in a row on Wednesday.Technologyread more
Challenging conditions in the U.S. housing market, along with tighter currency controls by the Chinese government, cause a stunning drop in foreign demand for American homes.Real Estateread more
His case for gold comes as central banks get more aggressive with policies that devalue currencies and are about to cause a "paradigm shift" in investing.Marketsread more
House Speaker Nancy Pelosi says she wants her chamber to vote on a debt ceiling and budget deal by July 26.Politicsread more
Philips has acquired a start-up that texts you about your poop. That's Medumo, a Boston-based company, which works with hospitals to guide their patients through common...Technologyread more
The "'Cadillac tax," set to go into effect in 2022, is unpopular with both Republicans and Democrats, who say it punishes the middle class.Health and Scienceread more
The declaration comes days after a case of the virus was confirmed in the Congolese city Goma, which borders neighboring country Rwanda.Health and Scienceread more
Federal Judge William Pauley wrote in a court filing made public Wednesday that materials related to a campaign finance probe of Cohen should be unsealed — and denied a...Politicsread more
The current global market sell-off was driven by computers and not traders' fears over market indicators, a strategist told CNBC on Tuesday.
More and more market transactions are made through algorithm trading — also known as algo trading, it uses advanced mathematical models to make high-speed trading decisions. Therefore, the equity sell-off seen since Friday was greatly driven by technical mechanisms, Salman Ahmed, chief investment strategist at Lombard Odier, said.
"The rise of algorithm-based trading means that there are in these algorithms some levels which trigger sell-off, i.e. sell orders," Ahmed said.
"Yes, I can argue that we needed some kind of correction, given what has happened over the last few months. But the ferociousness of the intra-day sell-off is driven by these pre-set sell orders, which come programmed in these algorithms automatically."
Since Friday, global stock markets have seen a sea of red — something that traders hadn't seen over the last year — with equity markets hitting several new-highs during that period. Most analysts believe the sell-off seen over the last three trading sessions is therefore a "healthy" correction.
"We have to consider one thing, this correction is in the general scheme of things a healthy development. I would have been way more worried if such a correction wouldn't have happened, given what we've seen over the last few months," Ahmed said.
Eric Moore, income fund manager at Miton Group, told CNBC on Tuesday that there was no reason to panic, at least for now.
"Nothing that has happened over the last 48 hours has made me think that the dividend characteristics of my portfolio are worse than I thought before," he said.
Ahmed pointed out that although there was no indication of an economic recession in the near-term, investors needed to be careful about how they absorbed risk.
"The global environment and the indicators we are looking at indicate no probability of a recession in the next six to nine months, so things will stabilize. But, yes, we have to be very careful about how we are taking risk and what is an asset class and what's not an asset class," he said.