Wall Street extends losses in broad selloff
The Nasdaq led losses for a second straight session, weighed down by Facebook, Amazon and other stocks that had lent strength to the market last year. "When you see selling this broad and non-discriminant, when everything is being sold, it tends to end when it just exhausts everyone whos worried," said Rick Meckler, president of LibertyView Capital Management in Jersey City, New Jersey. The losses followed a similar drop in European bank shares.
Mon, 08 Feb 2016 15:13:23 -0500
Tech stocks extend losses, valuations dented
Shares of cloud services companies such as Splunk Inc and Salesforce.com Inc had also declined sharply on Friday. "I think that what we see is a crisis in valuation for the highest multiple stocks, where valuations ... had been driven too far for thematic reasons, what investors perceived as the hottest growth areas," Avondale Partners analyst Randle Reece said.
Mon, 08 Feb 2016 15:45:11 -0500
Corporate winners of Obama budget still face long odds
By Lewis Krauskopf NEW YORK (Reuters) - Facing a hostile Congress in an election year, President Barack Obama will be hard-pressed to push through many of the proposals in his final budget as U.S. leader. Added funding could benefit suppliers such as Delphi Automotive, Autoliv and Mobileye, which are developing safety features for autonomously driven cars, and Lear, which makes electrical power systems, according to Brian Sponheimer, analyst at Gabelli & Co. "The market discounts that any proposals by this administration will be if not ignored, then outright put down," Sponheimer said. "There clearly is upside if it passes, but there is a very healthy skepticism that that is likely to take place." Obama's plan to fund an overhaul of the nation's infrastructure through a $10-a-barrel tax on crude oil could also boost engineering and construction firms such as Granite Construction said Morris Ajzenman, an analyst at Griffin Securities.
Mon, 08 Feb 2016 15:47:54 -0500
Verizon enlists AOL CEO to explore Yahoo deal: Bloomberg
(Reuters) - Verizon Communications Inc has given Tim Armstrong, chief executive officer of its AOL unit, a leading role in exploring a possible bid for Yahoo Inc's assets, Bloomberg reported, citing a person with knowledge of the situation. Verizon, the largest U.S. wireless carrier, hasn't hired bankers to conduct an offer and there have been no formal talks, according to the report. Yahoo said last week that it would consider "strategic alternatives" for its core Internet business, even as it continues with its plan to revamp the business and spin it off.
Mon, 08 Feb 2016 15:35:45 -0500
DoubleLine's Gundlach calls market trends 'relentless and powerful'
By Jennifer Ablan NEW YORK (Reuters) - Jeffrey Gundlach, the widely followed investor who runs DoubleLine Capital, repeated a December warning on Monday that the dramatic slowdown in global growth will trigger a collapse in some credit funds, saying that the high-yield "junk" bond market still has not hit bottom. "Credit fund bankruptcies are coming," said Gundlach, who warned in December that the Federal Reserve might regret raising rates because of deteriorating financial conditions. "It's not a market to be flopping around in.The trends are relentless and powerful." Gundlach, in emailed comments to Reuters, said: "Clearly, weaker-than-hoped-for global growth is the major factor in this weakness" in credit markets.
Mon, 08 Feb 2016 15:41:23 -0500
U.S. inflation survey tumbles in red flag for Fed
An increasingly important gauge of U.S. inflation tumbled last month to its lowest level since the Federal Reserve Bank of New York began the survey in mid-2013, in what could be taken as another warning bell for the U.S. central bank. The New York Fed's survey of consumers found expectations for inflation one and three years in the future fell as Americans were more cognizant of lower gasoline prices and costs of medical care and college. Respondents on the younger and older ends of the range, and those with lower education and income, drove the decline, said the New York Fed, whose survey has been increasingly cited by economists and central bankers themselves as a read on when inflation will return to a 2-percent target.
Mon, 08 Feb 2016 12:49:15 -0500
India introduces net neutrality rules barring Facebook's free Internet
By Sankalp Phartiyal and Himank Sharma NEW DELHI/MUMBAI (Reuters) - India introduced rules on Monday to prevent Internet service providers from having different pricing policies for accessing different parts of the Web, in a setback to Facebook Inc's plan to roll out a pared-back free Internet service to the masses. The new rules came after a two-month-long consultation process that saw Facebook launching a big advertising campaign in support of its Free Basics program, which runs in more than 35 developing countries. The program offers pared-down Internet services on mobile phones, along with access to the company's own social network and messaging services, without charge.
Mon, 08 Feb 2016 16:02:43 -0500
Chesapeake moves to quash bankruptcy fears as shares plunge
Chesapeake Energy, the No. 2 U.S. natural gas producer, said on Monday it had no plans to file for bankruptcy, after sources told Reuters the company had asked its longtime counsel to look at restructuring options. Chesapeake's shares were halted after plunging more than 50 percent but later pared some losses, as it said advisers Kirkland & Ellis had been providing counsel since 2010 and will continue to help the company strengthen its balance sheet. Trade publication Debtwire had reported the engagement of Kirkland & Ellis on Friday evening, prompting Chesapeake's shares to drop early on Monday to $1.50 on fears it might soon make one of the biggest bankruptcy filings of the current crash in oil and natural gas prices.
Mon, 08 Feb 2016 16:01:16 -0500
Economic expansions don't die of old age: Fed study
Unlike humans, economic expansions "do not become progressively more fragile with age," San Francisco Fed chief researcher Glenn Rudebusch wrote in the latest edition of the regional bank's Economic Letter. While before World War Two it actually was true that the longer expansions lasted the more likely they were to end, the same is not true of postwar expansions, Rudebusch found.
Mon, 08 Feb 2016 13:06:04 -0500
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