Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
Federal Reserve Vice Chair Richard Clarida said Friday that the global economy has deteriorated in the past month.Marketsread more
The latest escalation in the trade war ups the odds the economy will fall into recession and that the Fed will aggressively cut rates.Market Insiderread more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
"We don't need China and, frankly, would be far better off without them," Trump tweeted.Politicsread more
"My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?" Trump wrote amid a series of tweets that rattled markets Friday.Politicsread more
"I would love this to be clarified. We come to a deal on trade, boy, this market is up 10 to 15%, but without it's going to be worrisome," Jeremy Siegel says.Marketsread more
The final week of August could be highly volatile as markets fret over the economy and the latest developments in trade wars.Market Insiderread more
Tesla solar energy systems reportedly ignited at an Amazon warehouse in Redlands, California last June, and the Seattle e-commerce titan confirmed that it has no further plans...Technologyread more
The death comes as federal and state health officials investigate a slew of lung illnesses in connection to e-cigarette use.Health and Scienceread more
J.P. Morgan is getting less optimistic about Facebook due to the company's rising investment spending.
The firm lowered its price target to $195 from $205 for Facebook shares. J.P. Morgan also reduced its 2019 earnings estimate for the company due to higher expense spending.
Facebook's "investments in 2019 could be larger than anticipated in consensus estimates. We expect the narrative of heavy investment spending to continue at 3Q earnings," analyst Doug Anmuth said in a note to clients Tuesday. "Safety and security, around which FB will add 20k+ heads this year, will fall across multiple opex lines, but comes with little/no immediate revenue return."
The company's shares closed down less than 1 percent to $160.30 on Tuesday. The new target still represents 21 percent upside to Monday's close.
The analyst noted that the company gave lower operating profit margin guidance on its second-quarter earnings call. Facebook said the margin will fall to the "mid-30s on a percentage basis" over a multiyear period due to increased security and content review expenses. It reported a second-quarter operating margin of 44 percent.
"We expect FB to also invest more in innovation areas as it looks to develop bigger long-term bets around AR/VR, and possibly payments and blockchain among other areas," he said.
As a result, Anmuth lowered his Facebook 2019 earnings per share estimate to $7.40 from $7.89.
Despite his forecast reduction, he reiterated his overweight rating for Facebook shares due to the company's social media market leadership.
Facebook shares are underperforming the market this year. Its stock is down 9 percent year to date through Monday versus the S&P 500's 8 percent return.
The company did not immediately respond to a request for comment.