Stock futures fell sharply as U.S.-China trade worries persisted with more companies suspending business with Chinese telecom giant Huawei.US Marketsread more
A Ministry of Commerce spokesperson does not single out any U.S. action, but it's been a tense couple of weeks for the trade war.World Politicsread more
Tesla was set for its seventh straight day of losses after more analysts joined the growing list of those concerned with its finances.Investingread more
"For them to say that they don't work with the Chinese government is false," Secretary of State Mike Pompeo tells CNBC.Politicsread more
Appaloosa's David Tepper has reportedly discussed returning the hedge fund's capital to investors and converting it to a family office.Hedge Fundsread more
Huawei is winning over more and more Apple fans in China as the escalated trade tensions stoked "nationalist sentiment," according to South China Morning Post.Marketsread more
With Tesla shares skidding, two experts weigh in on what could be next for the automaker and its volatile stock.Trading Nationread more
U.S. tariffs on Chinese goods are hurting an unintended target as the country's trade war with China rages on, a study by the International Monetary Fund found.Marketsread more
Papa John's founder John Schnatter has been selling his shares in the company but remains its largest shareholder.Restaurantsread more
First-time claims for state unemployment benefits were expected to total 215,000 for the most recent week, up slightly from the 212,000 claims reported for the previous week.Economyread more
U.S. Secretary of State Mike Pompeo joined CNBC's "Squawk Box" on Thursday.Energyread more
Goldman Sachs is worried about rising commodity prices and higher wages, but the firm believes there is still an investment strategy that can outperform.
The firm recommended companies with high profit margins and return on assets.
That's because despite the one-time boost to profit from the corporate tax cut, companies face a number of challenges to maintaining their profit margins.
“Healthy corporate profitability continues to support equity prices ... However, the outlook for S&P 500 profitability is less constructive beyond 2018, " wrote David Kostin, Goldman's chief U.S. equity strategist, in a report Friday to clients. "With the economy at full employment, higher wages and rising input costs will pose downside risks to gross margins.”
Kostin reiterated his year-end price target of 2,850 for the S&P 500, representing just 2 percent upside from Friday’s close.
The strategist noted companies with high profit margins and return on assets can do well in an inflationary environment.
“These firms are profitable from both an earnings and an asset productivity perspective and are well-positioned as margin expansion slows,” he said.
Here are five buy-rated companies in the Goldman Sachs "highest net margins and return on assets" stock basket recommended by Kostin.