President Donald Trump has publicly blamed the Federal Reserve's interest rates hikes for holding back U.S. economic growth.The Fedread more
China's President Xi Jinping arrived in Pyongyang on Thursday morning for a state visit to North Korea — the first by a Chinese state leader in 14 years. Experts say the move...Asia Politicsread more
Gold prices spiked in the afternoon of Asian trading hours on Thursday after a dovish U.S Federal Reserve opened the door to further rate cuts, and the 10-year Treasury yield...Metalsread more
The Fed came very close to promising a rate cut Wednesday, and now markets are focused on a possible July rate cut.Market Insiderread more
Waymo has signed a deal with Renault and Nissan to develop self-driving cars and trucks for use in France, Japan and possibly other countries in Asia, including China, the...Autosread more
"No U.S. drone was operating in Iranian airspace today," a U.S. Central Command spokesman said, according to NBC News.World Politicsread more
The Fed left interest rates unchanged at its monetary policy meeting. The U.S. central bank did, however, drop the word "patient " from its statement and said it would "act as...Asia Marketsread more
As the presidents of U.S. and China near a highly anticipated meeting on trade, the gap in both sides' expectations regarding a deal remains wide.World Politicsread more
Markets had expected the central bank to keep its benchmark interest rate steady while setting up a cut at the July meeting.The Fedread more
The yield on the benchmark 10-year Treasury note fell below 2% for the first time since November 2016 on Wednesday.Bondsread more
Powell said policymakers are concerned about some of the recent economic developments and see a growing case for easier policy.The Fedread more
Morgan Stanley is warning investors to be careful when picking stocks next year because paying too much for overhyped growth names could be disastrous.
Mike Wilson, chief U.S. equity strategist at the firm, sees an "earnings recession" at some point in 2019, predicting "two quarters of negative year-over-year growth." The second and third quarters are at the greatest risk for three reasons, he explained Tuesday on CNBC's "Squawk Box. " "The comparisons are very difficult. And you're going to have a massive deceleration in economic growth; not a recession but a deceleration." He's also worried about "margin pressure."
Wilson and Morgan Stanley at the end October, as the was turning in its worst monthly losses in about seven years, broke with many strategists and firms who believed the market rout would be short-lived. At the time, Wilson wrote in a note, "The rolling bear market continues to make progress and there is growing evidence that it is morphing into a proper cyclical bear market." He was defining a "bear market" in terms of many stocks down 20 percent from recent highs, not the indexes.
Tuesday on CNBC, Wilson stood by that outlook. "There will definitely be panic on individual securities next year, which is why we think you got to be very careful about overpriced stocks. That's where we think the risk remains, in the high-priced growth stocks — not growth overall — but high-priced growth stocks where expectations are too high, they're going to be punished severely."
However, he said, "As part of our rolling bear market theme, it's going to be a very unsatisfying bear market to the bears. Why? Because you're in a structural bull market. And when you're in a structural bull market you don't get the big earnings collapse."
Heading into the new year, two major concerns on Wall Street were defused and the stock market jumped.
Second, on interest rates, Federal Reserve Chairman Jerome Powell walked back his long-way-from-neutral comments that slammed the markets in October and into November. Last week, he said rates are just below neutral, suggesting that concerns about a more aggressive path higher for rates may no longer be warranted. His Wednesday remarks fueled a market turnaround that put November modestly in the green.
The Fed later this month is expected to raise rates for the fourth time this year. But the path next year is up for debate. After its September rate hike, the Fed projected three rate increases into 2019. The current target range for the central bank's benchmark federal funds rate, which banks charge each other for overnight lending, stands at 2 percent to 2.25 percent.
Despite the Fed and the trade detentes, Morgan Stanley's Wilson said Tuedsay on CNBC that he has not adjusted his near-term trading range for the S&P 500 of between 2,650 and 2,825. For 2019, he sees a base case of 2,750 for the index, a bear case of 2,400, and a bull case of 3,000.
The S&P 500 on Monday jumped 1 percent on the Trump-Xi trade cease-fire, closing at 2,790.