Author: starbpo

Nvidia is Bank of America’s top chip stock pick amid AI-bubble worries. Large technology companies are spending furiously on artificial-intelligence infrastructure – despite the associated revenue not being there yet. That sort of backdrop has some on Wall Street wondering when they should worry. With large-scale infrastructure deployments come “some risk of overbuilding,” as it’s difficult to measure how much capacity will be needed to meet future demand, Bank of America analysts led by Vivek Arya said in a Monday note. At the same time, companies are caught up in a race to protect dominance or are looking for new…

Manhattan’s Jefferies office building. Jefferies Financial Group Inc. took action to allay investors’ mounting concerns about the consequences of its client First Brands’ bankruptcy by claiming that any damage to its finances could be easily “absorbed” and would not affect its operations. Since investors were seeking some explanation on the situation, it appeared to be effective—at least for the time being. Monday afternoon trading saw a 4.9% increase in the stock (JEF). A 10-session losing streak, the longest since a 13-day run that concluded on May 18, 2012, would finish with a closing in positive territory. Over the course of…

The starting price of the “standard” Model Y is $39,990. Last week, Tesla Inc. finally unveiled new, more reasonably priced electric cars that are aimed at attracting new clients and assisting the business in shedding its image as a corporation that caters to the wealthy. However, considering the trade-offs that customers will have to make, it is uncertain if it will be profitable. Starting at $39,990, the “standard” Model Y is roughly $5,000 less expensive than the “premium” electric SUV, which was previously the base model. In contrast, the “premium” electric compact costs $42,490, while the “standard” Model 3 costs…

With more than half of the world’s cargo capacity and more than half of the order book for new ships, China is the global leader in shipping and shipbuilding. The trade battle between the US and China is becoming more tense. China’s penalties against five U.S. subsidiaries of South Korea’s Hanwha Ocean shipbuilding company have added a new dimension to the long-running issue. The subsidiaries were charged by China’s Commerce Ministry on Tuesday with “assisting and supporting the U.S. government probes and measures against Chinese maritime, shipbuilding, and logistics sectors.” At one point during Tuesday’s trading, shares of Hanwha Ocean…

Fitch Ratings changed France’s outlook from “stable” to “negative” late Friday, blaming rising political risks and the country’s growing budget deficit. This came a day after the new government announced its 2025 budget. “France’s fiscal starting point is worse because of this year’s projected fiscal slippage,” Fitch said in a statement. “We now expect wider fiscal deficits, which will cause government debt to rise sharply to 118.5% of GDP by 2028.” Fitch kept France’s rating at “AA-.” As for the government’s plan to get the deficit below the EU’s 3% limit by 2029, Fitch thinks it won’t happen. The deficit…

Many people lost their jobs because of hurricanes Milton and Helene, which killed many people. The storms may have caused prices to rise, but they probably won’t stop the U.S. economy from growing much. Before Hurricane Helene hit at the end of September and destroyed parts of the southeast U.S., the gross domestic product was on track to grow by 3% year over year in the third quarter. GDP is the official measure of how well the U.S. economy is doing. There was no change in GDP growth because of Hurricane Helene, which hit in the last few days of…

Wedbush analysts said Friday that Apple Inc.’s doubters and bears have missed the last more than $1 trillion rise in the stock price by missing three important factors. Some of the most bullish analysts, led by Dan Ives, wrote in a Friday note to clients that Apple AAPL 1.02% has a “unmatched” installed base of more than 2 billion iOS devices and 1.5 billion iPhones. Another 300 million are due for an upgrade. The note said that the customer base is becoming more valuable because the services business is worth $2 trillion. The note also said that consumer AI “will…

D.A. Davidson experts say that Dick’s Sporting Goods Inc. and Best Buy Inc. stocks are likely to do poorly from Black Friday to the end of the year, since they are two retailers that are most affected by the holiday season. A group of experts led by Michael Baker wrote in a note to clients on Friday that Dick’s DKS -3.00% makes just under 40% of its profits in the fourth quarter and Best Buy BBY 2.08% makes about 30%. From now until the end of the year, Dick’s stock usually drops 1.5%, and Best Buy’s stock usually drops 2.9%,…

Traders have had to deal with an important U.K. budget, U.S. PCE inflation data, a Bank of Japan policy meeting, a closely fought U.S. election, and a Federal Reserve policy decision all in just 12 days. Not to mention the Japanese election that marked the end of an era. So, it makes sense that there is a good chance of instability in the short term. Equity buyers, on the other hand, don’t seem to care much. The S&P 500 SPX -1.56% is up 21.8% so far this year, just a little short of its all-time high. The CBOE VIX index…

Rachel Reeves, the new chancellor of the exchequer in the U.K., has said that she wants to raise the national minimum wage by 6.7% to £12.21 ($15.84) an hour. In a statement, the finance minister for the Labour Party said that the pay rise will give a £1,400 pay boost to “millions of workers” when it starts in April 2025, which is the beginning of the U.K.’s fiscal year. With this raise, the U.K.’s national minimum wage will be one of the highest in the world, higher than places like France and Germany that have similar minimum wages. Along with…