China may have signaled it's going more hard-line on trade, but it could be a good thing, former U.S. negotiator Clete Willems told CNBC.World Economyread more
As China's economic growth declines, some analysts say Beijing may have to spend more on infrastructure, adding to concerns about high debts.China Economyread more
After years of speculation, Neuralink, the brain-machine interface start-up co-founded by Elon Musk, started talking directly to the public on Tuesday.Technologyread more
"The charts, as interpreted by Carley Garner, suggest that the upside in the stock market has gotten more limited," Jim Cramer says.Mad Money with Jim Cramerread more
John Paul Stevens, who served on the Supreme Court for nearly 35 years and became its leading liberal, has died.Politicsread more
A key read on the industry, the Architecture Billings Index, fell into negative territory in June, according to the American Institute for Architects. Inquiries for new...Real Estateread more
The largest U.S. banks are scrutinizing members of the Federal Reserve for any insight into how the central bank will tinker interest rates.Banksread more
Mikaila Ulmer may be just 14 years old, but the Me & the Bees Lemonade founder knows a thing or two about business.Young Successread more
U.S. President Donald Trump said Tuesday that Washington and Beijing have a long way to go on trade, adding that America could place tariffs on an additional $325 billion...Asia Marketsread more
The U.S. and China restarted their trade talks, but signs are showing a comprehensive deal could be a long way off, if it happens at all.Marketsread more
The WTO ruling recognized that the United States had proved that China used state-owned enterprises to subsidize and distort its economy. But the U.S. must accept Chinese...World Economyread more
A Goldman Sachs stock portfolio that tracks industry-dominant "superstar" companies in the United States is beating the stock market over the last three years.
Among the stocks on the list: Procter & Gamble, which dominates consumer products, Altria Group, which dominates tobacco, along with Google parent Alphabet and PepsiCo. These companies often benefit from a high share of industry sales, strong pricing power and fat profit margins — all of which contribute to a compelling investment thesis, Goldman's chief U.S. equity strategist, David Kostin, wrote Tuesday.
The stock strategist added that companies with the highest share of industry sales have returned 49% since 2015 compared with 16% for companies with the lowest share after controlling for industry group.
"The market positioning of superstar firms often allows for greater bargaining power over consumers and workers and higher profitability," Kostin said in a note to clients. "Superstar firms have been one driver of the explosion in US corporate margins post-crisis."
The decline in the number of listed U.S. companies from 8,000 in 1996 to about 4,000 today through fewer initial public offerings and M&A has led to a concentration in a number of key industries, Goldman added.
While dominance has led to hefty bottom lines at a number of well-known conglomerates able to maintain sizable market share, regulatory troubles could be brewing for a few.
U.S. lawmakers are looking to crack down on big tech companies like Facebook, Amazon and Alphabet through congressional probes into their impact on public life. Both the Federal Trade Commission as well as the Department of Justice are also launching investigations into whether some of the nation's largest tech titans could be prosecuted under antitrust law or for violations of privacy.
That's kept their stocks under pressure, with Facebook and Alphabet each down at least 5% over the last month. And while regulators are still months, if not years, away from a conclusion, Kostin added investors should monitor developments closely.
"From a strategic perspective, we believe that uncertainty is still too high to recommend investors avoid stocks in the regulatory spotlight," he wrote. "But while the impact of regulation on today's stocks will be case-dependent, similarities among historical outcomes suggest that investors should reduce exposure to any stock that becomes subject to an antitrust lawsuit. In the past, stock valuations and share prices declined between lawsuit filing and resolution."