Software engineers straight out of college often make six-figure salaries, not counting equity compensation.Technologyread more
Representatives from the Chinese side say they think it likely that Chinese President Xi Jinping will attend the G-20 meeting later this month. But in order to reach a trade...China Economyread more
Wall Street, though, is clamoring for a rate cut, with an 85% chance of a move in July and a 61% probability of three reductions by year's end.The Fedread more
A company spokesperson said the outage was the result of a "an internal technology issue" and was not security related.Retailread more
Using MIT's living wage calculator, CNBC Make It mapped out the minimum amount a single parent must earn to meet their basic needs without relying on outside help in every...Earnread more
In the survey, 66% of Democratic primary voters say they'd be enthusiastic or comfortable about Biden as their nominee to take on President Trump in the 2020 election. Just...Politicsread more
You can save money by doing a quick check and unsubscribing from apps you no longer use.Technologyread more
The flattening of the yield curve is exuding a bad omen for the stock market if history is any guide.Marketsread more
Stratolaunch, the world's largest airplane, which flew once, is up for sale, sources familiar told CNBC.Investing in Spaceread more
Transparency is key… or is it? With the first-ever non-transparent, actively managed exchange-traded fund receiving approval from the SEC, "ETF Edge" goes straight to the...ETF Edgeread more
Mired in a crisis over its best-selling 737 Max plane, Boeing could hand the spotlight over to its rival Airbus at the Paris Air Show.Airlinesread more
Big investors are taking a large hit from the share drops in technology leaders over the past week, partly driven by President Donald Trump's tweets.
Bank of America Merrill Lynch told its clients that funds had significantly larger stakes in Amazon and Netflix compared to benchmark market indexes at the end of last month.
Trump has tweeted about Amazon multiple times in recent days. The president criticized the e-commerce retailer over taxes and claimed it has not paid the post office adequately for its delivery services, spurring a plunge in its stock price.
Amazon and Netflix shares are down more than 11 percent over the past week. Both stocks fell more than 5 percent Monday.
"In this month's fund holdings update, Consumer Discretionary remained the most crowded sector, as large cap fund managers modestly raised their relative exposure to a five-month high," strategist Savita Subramanian wrote in a note to clients Thursday. "But the overweight is almost entirely driven by Amazon and Netflix, which together account for ~25% of the sector's market cap."
The strategist noted half the mutual funds it tracked owned Amazon, while 23 percent owned Netflix. The average relative position size in Amazon versus the index was 1.7 times, while Netflix's weighting was 2.0 times the benchmark.
Subramanian's team aggregated all the positions from U.S. large-cap equity mutual funds, using FactSet institutional ownership data. They then compared the weightings versus the relevant equity index benchmark to calculate its "crowded" stock analysis.
She has said it's more difficult for crowded stocks to move higher since everyone is already in the trade. Moreover, when sentiment shifts there may be more downside risk as investors flee for the exits at once, according to Subramanian.