STORY: In particular, Nasgovitz points to industrial companies that are exposed to energy companies - "the picks and shovels, if you will."
"They've taken their know-how - whether it's in the valve side, whether it's in the heat tracing side - and applied that to growing new end markets, say, in the alternative energy side or the carbon-capture side."
One thing that has distinguished traditional banking from crypto, in the eyes of many financial experts, is stability. So if customers sitting anywhere in the world with an Internet connection can instantly move their money from one bank to another, the question arises of how different that traditional setup looks compared to notoriously fickle crypto, aside from the ostensible government backstop.
Stocks closed higher Thursday afternoon as a post-Fed rally was bolstered by hopes from investors interest rate hikes will end sooner than expected as banking pressures end the central bank's aggressive fight against inflation.
As Fed Chair Powell's press conference progressed, we saw stocks begin ticking down.
The Bank of England (BoE) raised interest rates for the 11th time in a row on Thursday, but said a surprise resurgence in inflation would probably fade fast, prompting speculation it had ended its run of hikes. Sounding more upbeat about the outlook for Britain's sluggish economy but noting the risks posed by turmoil among global banks, the BoE's nine rate-setters voted 7-2 in favour of a 25 basis-point increase in Bank Rate to 4.25%, as expected by economists polled by Reuters. This rate rise extends a run of increases that began in December 2021, although it was the Monetary Policy Committee's (MPC) smallest increase since June.
Federal Reserve Chair Jerome Powell raising interest rates by another quarter point Wednesday, against the backdrop of chaos in the banking sector. In a wide ranging interview, NVIDIA CEO Jensen Huang told Yahoo Finance's Julie Hyman and Dan Howley how the change in rates would affect the chipmaking business. "This is the time when we all have to do more with less," Jensen said, "and accelerated computing is really the best path forward to do so." Key Video Moments0:38 - Refactoring software to save money0:55 - Accelerating software for data processing1:07 - Reducing carbon footprints in computer processing
The Federal Reserve raises the interest rate for the ninth consecutive time in an attempt to tamp down inflation while also dealing with multiple bank failures.
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STORY: Wall Street gyrated to ultimately end sharply lower on Wednesday after the U.S. Federal Reserve delivered a 25 basis-point interest rate hike…with the Dow, S&P 500 and the Nasdaq all closing down roughly 1.6%.The three major indexes at first climbed higher as Chair Jerome Powell indicated the Fed might pause its rate hikes due to turmoil in the banking sector."We no longer state that we anticipate that ongoing rate increases will be appropriate to quell inflation. Instead, we now anticipate that some additional policy firming may be appropriate."But stocks headed south as deflated investors digested Powell’s subsequent Q&A session, in which he reiterated the central bank's commitment to reining in inflation.POWELL: "We're very focused on getting inflation down, and because we know in the longer run that that is the thing that will most benefit the people we serve.”[FLASH]“I believe this may be the last hike, for good.”But Jimmy Lee, founder and CEO of The Wealth Consulting Group, believes Wednesday’s rate increase will likely be the Fed’s last."My base case is that inflation's coming down... and the stickiest part of, potentially, inflation is the wage pressures - and the signs of wage pressures coming down I think is another reason why the Fed just may stop now."Meanwhile, shares of beleaguered First Republic Bank slipped more than 15% in volatile trading amid worries it may need to downsize or seek government support.Among other movers, retail darling GameStop surged 35% after posting a surprise fourth quarter profit.And Nike dropped nearly 5% a day after the sports apparel maker raised its full-year revenue outlook but warned of margin pressures.
The marriage of UBS and Credit Suisse was hastily arranged to prevent a global financial meltdown -- but the resulting megabank could cause domestic problems in Switzerland, the central bank admitted Thursday.UBS and Credit Suisse were both among the 30 banks around the world deemed 'too big to fail' and therefore considered Global Systemically Important Banks.
STORY: How is China benefitting from sanctions on Russia?The war in Ukraine triggered sanctions on Russia’s energy imports and exports by the EUdistorting the global LNG marketand placing Russia under pressure to sell the energy surplus.Enter ChinaChina purchased Russian oil and coal on a cheap, not only saving billions of dollarsbut also making returns trading excess supplies.President Xi says China wants a closer partnership with Russia that maintains international energy security and supply chains.How much has China gained so far?Crude Oil China's crude imports from Russia jumped 8% in 2022even as the country's overall imports slipped due to a slowdown in its economyAccording to Reuters' calculationsChinese refiners saved about $5.5 billion from April 2022 to January this year.Coal China has also increased coal imports from Russia,buying discounted coal while Europe shunned Russian cargoes.In 2022, Russian coal arrivals surged 20% from a year earlier. Liquefied Natural GasChina's LNG imports from Russia soared over 40%.Simultaneously, its exports rose as China re-exported LNG to top importers like South Korea, Japan and France.That came even as overall LNG imports by China fell by almost 20% as strict lockdown measures in 2022 slowed economic activity and curbed demand.
Inflation, which measures the increase in the price of something over time, jumped to 10.4% in the year to February.
Yahoo Finance Fed reporter Jennifer Schonberger breaks down the official decision by the Federal Reserve to raise interest rates by 25 basis points.
Yahoo Finance Live’s Julie Hyman summarizes three key topics to watch for this morning.
Troubled Japanese conglomerate Toshiba said Thursday it will "support" a $15 billion takeover bid by a consortium led by investment fund Japan Industrial Partners.The JIP-led consortium includes 17 Japanese businesses and six Japanese financial institutions which are investing in or issuing loans for the deal.
The U.S. Securities and Exchange Commission on Thursday issued an investor alert warning that firms offering crypto asset securities may not be complying with U.S. laws. Unregistered offerings of such securities may not provide important data, including audited financial statements, for informed decision making, the SEC said. The securities watchdog has been cracking down on the crypto industry, which its chair has called a "Wild West" riddled with misconduct.
Yahoo Finance’s Jared Blikre joins the Live show to break down how stocks are moving ahead of the Fed’s FOMC decision on Wednesday.
Accenture (ACN) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
CRISPR Therapeutics, Ligand Pharmaceuticals, Theseus Pharmaceuticals and Kala Pharmaceuticals are part of the Zacks Industry Outlook article.
The Zacks Focus List offers investors a way to easily find top-rated stocks and build a winning investment portfolio. Here's why you should take advantage.
STORY: Amid recent turmoil in financial markets spurred by the collapse of two U.S. banks, Federal Reserve Chair Jerome Powell Wednesday announced an interest rate hike of a quarter of a percentage point—and indicated the fed was on the verge of pausing further increases – as Powell warned that stress in the banking industry could trigger a broad credit crunch with "significant" implications for the U.S. economy.“We believe, however, that events in the banking system over the past two weeks are likely to result in tighter credit conditions for households and businesses, which would in turn affect economic outcomes. It is too soon to determine the extent of these effects and therefore too soon to tell how monetary policy should respond. As a result, we no longer state that we anticipate that ongoing rate increases will be appropriate to quell inflation. Instead, we now anticipate that some additional policy firming may be appropriate.”The Fed's relentless rate hikes to rein in inflation are among factors blamed for the biggest banking sector meltdown since the 2008 financial crisis. Policymakers have stressed the turmoil is different from the crisis 15 years ago, saying banks are better capitalized and funds more easily available.Powell insisted the system was sound after the spate of actions that the central bank and other regulators have taken in the last two weeks."These actions demonstrate that all depositors' savings in the banking system are safe," “We will continue to closely monitor conditions in the banking system and are prepared to use all of our tools as needed to keep it safe and sound."But while deposits might be safe.. the recent banking dysfunction could hurt consumers in other ways—as banks pull back-loans might be harder to come by.Christian Ledoux is a director at CAPTRUST. “The banking situation is actually disinflationary, as banks are going to be responding to this by loading less and being a little bit more conservative.”That could help the fed back off its inflation fight.This is quite a shift from a few weeks ago when a series of stronger than expected economic reports had raised concerns the Fed would continue lifting rates longer than anticipated and to a higher level.
