Market Watch


President Trump’s ban on China telecom giant Huawei is hurting technology stocks because Huawei is a big customer of prominent U.S. companies.

Which companies may be hurt more than others? For astute investors, segmented money flows provide an edge in doing good analysis. Let’s explore with the help of a chart.


Please click here for the chart showing segmented money flows in 11 popular tech stocks. Due to the popularity of these stocks, it makes sense to look at them in addition to the Dow Jones Industrial Average DJIA, -0.24% and ETFs such as the S&P 500 ETF SPY, -0.42% Nasdaq 100 ETF QQQ, -1.36% and small-cap ETF IWM, -0.15% Please note the following:

• Facebook’s FB, -2.01% stock is the only one with very positive smart money flows and momo (momentum) money flows. The reason is that Facebook does not do any material business in China.

• Alphabet GOOG, -1.72% GOOGL, -1.74% just revoked Huawei’s Android license. Huawei has become a major force in smartphones and has been rapidly gaining market share. In the short term, Huawei phones are likely to keep working. It appears that Huawei phones will be able to maintain access to the apps on the Google Play Store.

Huawei may also be able to rely on AOSP (Android Open Source Project). Huawei has also developed its own operating system.

Huawei may be able to maintain its market share inside China. However, proprietary Google services will likely become inaccessible on Huawei phones and this may make it difficult for Huawei in international markets including India and Europe.

The chart shows that smart money flows are positive in Alphabet (Google) stock. In contrast, momo crowd money flows are negative.

Smart money flows make sense because Google does not generate material revenue from China.

• Intel INTC,

Click here to go to original post. All rights reserved to the original post owner.

In 2016, Mackenzie McDonald was the best men’s college tennis player in America. As a junior at UCLA, he won both the singles and doubles titles and lost only one match during the year. The success convinced him it was time to leave college and compete in professional tournaments.

Unlike athletes in most major sports, like baseball, basketball and football, top college tennis players aren’t drafted onto a team and paid a high salary. They have to pay their own money to get to tournaments and only make money when they win matches. So it helped McDonald a lot when he became the first recipient — along with college tennis champion Danielle Collins — of the Oracle US Tennis Award. In March 2017, the company granted $100,000 to each college star to help them transition to the pros.

“I couldn’t think of two better people to receive these first awards than Danielle and Mackie,’’ Oracle’s CEO Mark Hurd said at the time. “Our goal is to help deserving players in developing their games. Once you leave the collegiate ranks, you lose a lot of the built-in support that college provides.’’

McDonald told MarketWatch that he was lucky Oracle ORCL, -0.66%   chose him. “It was extremely helpful. There were a ton of expenses — last minute plane tickets, hotels. It gave me a lot of relief coming right out of college,” he said. He added that he would have found a way to make it to tournaments somehow without the grant, but that it helped him play more freely to not worry about money as much. In early May 2019, Oracle continued the relationship by signing him to an endorsement deal, and McDonald will now wear an “Oracle” patch on his clothing.

McDonald is 24 and he was a top-ranked

Click here to go to original post. All rights reserved to the original post owner.

The former inmate that Kim Kardashian helped free from jail a year ago is devoting the next chapter of her life to prison reform — and she’s thanking the “Superwoman” who helped set her free.

Alice Marie Johnson, who had already served 21 years of a life sentence for a first-time, nonviolent offense related to cocaine possession when President Trump commuted her sentence last June, told the “Today” show’s Craig Melvin on Monday that the cameras may have caught her running across the road to her family last year, “but I’ve been running for the people ever since, the people who’ve been left behind in prison.”

‘There are many Alice Marie Johnsons, many women, and many men, who deserve a second chance, the same chance that I’ve been given.’

Alice Marie Johnson

Johnson, 63, gives an intimate look into her life behind bars, as well as detailing how Kardashian hired a legal team to take over Johnson’s case, in her new memoir “After Life” hitting shelves on Tuesday.

Watch Alice Marie Johnson’s full interview with @craigmelvin about her new book, what @kimkardashian has meant to her, who she wants to play her in a movie and more.

— TODAY (@TODAYshow) May 20, 2019

“Since I’ve come home, so many people want to know the inside story. They want to know who I am as a person,” she said. “So this memoir is my life, and it also magnifies the issue of prison reform.”

Related: This woman teaches personal finance to prison inmates

As of 2016, 1,907 federal inmates were serving life sentences for drug offenses, which are by definition nonviolent, according to a Sentencing Project analysis of federal corrections data, putting the cost of imprisoning these men and women at about $64 million in

Click here to go to original post. All rights reserved to the original post owner.

Google GOOGL, -1.76%  is giving Chinese smartphone maker Huawei the cold shoulder.

But will consumers be left in a bind?

Alphabet’s search engine giant confirmed Sunday that it had revoked Huawei’s Android license, Reuters reported. Huawei devices 002502, +1.11%  will only be able to use an open-source version of the Android platform, restricting access to Google services such as Gmail and YouTube as well as the Google Play app store for third-party applications.

A new Trump administration policy requires federal-government approval for all purchases made by Huawei.

Google took action to comply with a Trump administration policy issued last week that requires federal government approval for all purchases made by Huawei and affiliated businesses of U.S.-made microchips, software and other components.

Government officials have grown suspicious of Huawei amid concerns that the Chinese government could use the devices to spy on Americans.

Also see: Trump’s economic sanctions on Huawei could backfire on the U.S.

“For users of our services, Google Play and the security protections from Google Play Protect will continue to function on existing Huawei devices,” a Google spokesperson said.

This also isn’t the first time that the U.S. has targeted a Chinese smartphone maker. “ZTE ZTCOY, -1.41%  actually had similar restrictions imposed last year, before coming to a set of agreements and payments to the U.S. government which started to ease its trade restrictions,” said Ben Stanton, an analyst with research firm Canalys.

“So if anything, ZTE was a forewarning for Huawei,” he said.

Here’s what it means for consumers:

U.S. consumers could be left with fewer smartphone choices

Apple and Samsung dominate the smartphone market in the U.S. Together, the two companies control nearly 80% of the mobile vendor market in America, according to data from GlobalStats.

Huawei, meanwhile, has struggled to crack the U.S.

Click here to go to original post. All rights reserved to the original post owner.

Tesla Inc. shares hovered at their lowest in 2½ years as Wall Street continued to worry about the company’s growth prospects and attempt to curb expenses.

Tesla TSLA, -4.28%  stock fell more than 5% on Monday, poised to close at its lowest since Dec. 15, 2016, and trading as low as $195.25.

“The stock recently fell through key technical support levels, so there’s a lot of momentum to the downside,” said Garrett Nelson, an analyst at CFRA.

Adding to that downward momentum, analysts at Wedbush earlier Mond

ay cut their price target on Tesla to $230 from $275, a 15% upside over midday prices, saying “clouds are getting darker” for the company.

See also: Tesla stock falls nearly 8% after reports of ‘hard-core’ plan to slash costs

“We continue to have major concerns around the trajectory of Tesla’s growth prospects and underlying demand on Model 3 in the U.S. over the coming quarters which is putting more heat in the kitchen on (Chief Executive Elon Musk)” and Tesla to rein in expenses with an eye toward hitting its profitability goals in the second half of the year, “a Kilimanjaro-like uphill climb,” the Wedbush analysts said in a note Monday.

Tapping capital markets to the tune of $2.4 billion earlier this month was “a smart strategic step forward” to give the company a “more formidable” balance sheet ahead of significant debt payments as well as a choppy profitability profile over the next 12 to 18 months, the Wedbush analysts, led by Dan Ives, said in the note.

They kept their equivalent of a hold rating on Tesla. Ives and his team cut their views to hold from buy in April, when they deemed the company’s first-quarter results miss and the accompanying call with analysts “one of the top debacles we have

Click here to go to original post. All rights reserved to the original post owner.

Bitcoin’s rise from the ashes over the past two months is showing similarities to the boom of late 2017, according to analysts at JPMorgan Chase & Co.

Having opened the year around $3,500, bitcoin, BTCUSD, -2.84%  the best-known cryptocurrency, spent the first few months treading water. But in early April — seemingly out of nowhere — the cryptocurrency surged around 100% in around six weeks, putting bitcoin back on the map after a torrid 18 months.

Read: Bitcoin is up more than 100% in 2019 — why is no one Googling it?

But, analysts at JPMorgan have warned that the rapid rise has pushed the price of the digital currency above its intrinsic value, something not seen since late 2017. “As a result, over the past few days, the actual price has moved sharply over marginal cost,” wrote Nikolaos Panigirtzoglou, global market strategist at JPMorgan.

“This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices together with some increase in intrinsic values.”

The bank calculated its intrinsic value using inputs such as computer power, hardware efficiency and electricity expense — all features that translate to the creation of bitcoin.

Bitcoin v intrinsic value

Read: ‘If you’re not a billionaire’ in 10 years ‘it’s your own fault,’ says 20-year-old bitcoin tycoon

The commentary on bitcoin from JPMorgan comes as the bank’s CEO has been a vocal skeptic of cryptocurrencies. Back on 2014, JPMorgan CEO Jamie Dimon labeled bitcoin a ‘terrible store of value,’ and called it a ‘fraud.’

Read: Jamie Dimon: ‘I don’t really give a shit about bitcoin’

But in February, JPMorgan JPM, +0.60% launched its own digital currency: JPM Coin, not a bet on bitcoin per

Click here to go to original post. All rights reserved to the original post owner.

Treasury yields held steady on Monday as U.S.-China trade tensions remained a focus for investors, driving Wall Street mostly away from stocks to the perceived safety of government paper over the past few weeks.

What are Treasurys doing?

The 10-year Treasury note yield TMUBMUSD10Y, +0.55%  edged down by 0.1 basis point to 2.395%. The benchmark yield slipped 5.9 basis points last week.

The 2-year note yield TMUBMUSD02Y, +0.56%  was virtually unchanged at 2.205%, after a 4.7-basis-point decline last week. The 30-year bond yield TMUBMUSD30Y, +0.03%  added 0.2 basis point to 2.827%, following a weekly drop of 4.8 basis points on Friday.

Debt prices move in the opposite direction of yields.

What’s driving Treasurys?

The likelihood of further trade talks between the U.S. and China appeared to diminish after CNBC reported that scheduling for the next round of negotiations is “in flux,” because neither side appears willing to agree to concessions.

Meanwhile, Bloomberg News reported Sunday that U.S. chip makers have frozen the supply of critical software and hardware components to Huawei Technologies Inc., heightening trade concerns.

The tariff tensions were weighing on global stocks, with the Dow Jones Industrial Average DJIA, -0.28% and the S&P 500 index SPX, -0.47% trading lower to start weekly action.

Which data and Fed speakers are ahead?

The Chicago Fed’s index registered at a negative 0.45 in April, down from an upwardly revised positive 0.05 in March and a negative 0.31 in February.

Atlanta Fed President Raphael Bostic on Monday said he wasn’t sure what direction the next interest-rate move would be, because there are risks that go in both directions. He expects “solid growth” of 2.25%-2.5% this year but less than the 3% recorded last year.

What are strategists saying?

“The US/China trade war and possible conflict with Iran continue to play a major

Click here to go to original post. All rights reserved to the original post owner.

I am on Facebook, and there is a lot of crap on Facebook. Even the non-political crap is stuff I just do not believe in.

For example, people say you should spend your money on experiences, not things. There is some spiritual component to this that I don’t get. I like spending money on experiences (particularly travel), but I like spending money on things more. Clothes, in particular.

You feel (and act) differently when you are wearing an expensive suit and an expensive pair of shoes. People who make $150,000 a year and still get all their clothes at Target do this not out of frugality, but low self-esteem. It is good and right to spend money on yourself now and then.

The other crap you hear on Facebook, and pretty much everywhere else, is that money doesn’t make you happy. Oh, yes, it does.

It is not going to fix broken relationships, or compensate for your bad behavior, or cure your addictions. But buying nice stuff makes you feel good, and nobody should make you feel guilty about that.

Read: When it comes down to it, there’s no excuse for not maxing out your 401(k)

The concept of abundance

Let’s talk about the concept of abundance, where there is always more than enough in your life. You have enough for the basics — food, clothes, a roof over your head. You have enough for some luxuries — a nice watch, a nice car, some toys. And you have enough that you can give lots of it away.

I’m sure you are familiar with the book “The Millionaire Next Door.” I hate that book. Anyway, the book implies that everyone should aspire to be a millionaire. No — everyone should not aspire to be a millionaire. For some people, it

Click here to go to original post. All rights reserved to the original post owner.

Harris proposes fines for firms with gender-pay gap: Democratic presidential hopeful Kamala Harris is proposing that big employers pay women on an equal basis with their male counterparts or face government fines, says a Wall Street Journal report.

The California senator released a plan Monday that would put the burden on companies to demonstrate that they are not engaging in pay discrimination. Companies would be fined 1% of their profits for every 1% wage gap they allow to continue for work of equal value.

Republican congressman who backs impeachment draws primary challenge: Michigan Rep. Justin Amash has attracted a Republican primary challenger after he tweeted over the weekend that President Donald Trump has committed impeachable offenses.

Michigan State Rep. Jim Lower announced Monday that he will run for the seat that Amash has held since 2011, The Daily Beast reports. Amash’s tweets “calling for President Trump’s impeachment show how out of touch he is with the truth and how out of touch he is with people he represents,” said Lower, who described himself as “pro-Trump.”

Amash, the first Republican member of Congress to say the president engaged in impeachable conduct, has been blasted by Trump, who called him a “total lightweight” and “loser.” Utah GOP Sen. Mitt Romney said Amash has made “a courageous statement,” but he doesn’t agree with him.

EPA mulls change to make rule shift for coal plants look less deadly: The Environmental Protection Agency plans to adopt a new method for estimating the future health risks of air pollution, in a move that would cut an estimate from the Trump administration that projected as many as 1,400 additional premature deaths per year from a proposed new rule on emissions from coal plants. So says a New York Times report citing people familiar with the agency’s plans.

Click here to go to original post. All rights reserved to the original post owner.

U.S. stocks looked set to fall on Monday as souring U.S.-China trade relations continued to weigh on sentiment throughout global markets.

How are major benchmarks faring?

Dow Jones Industrial Average futures YMM19, -0.04% fell 163 points, or 0.6%, to 25,614, those for the S&P 500 ESM19, -0.03% declined 21.75 points, or 0.6%, at 2,840.50, while Nasdaq-100 futures NQM19, +0.01% retreated 104.75 at 7,407.50, a fall of 1.4%.

On Friday, the Dow DJIA, -0.38% slid 98.68 points, or 0.4%, to 25,764 and the S&P 500 index SPX, -0.58% lost 16.79 points, or 0.6%, to 2,859.53. The Nasdaq Composite Index COMP, -1.04% declined 81.76 points, or 1%, to 7,816.28.

The Dow shed 0.7% for the week, bringing its weekly losing streak to four, the longest since May 2016. The S&P 500 fell 0.8% on the week while the Nasdaq dropped 1.3%.

What’s driving the market?

Sino-American trade tensions continued to face apparent escalation, with shares of chip makers taking it on the chin as U.S. technology companies have begun to comply with the White House’s ban on China’s Huawei Technologies Inc.

Bloomberg News reported Sunday that Xilinx XLNX, -1.29% XLNX, -1.29% and other U.S. chip makers, including Intel Corp INTC, -1.41% Qualcomm Corp. QCOM, -1.58%  and Broadcom Inc. AVGO, -2.49%  have frozen the supply of critical software and hardware components to Huawei. The Wall Street Journal reported separately that Alphabet Inc.’s GOOG, -1.41% Google will cease selling some services for devices made buy Huawei, which relies on Google’s Android software to run its smartphones.

Meanwhile, chances of further trade talks between the U.S. and China appeared to take a hit over the weekend, after CNBC reported that scheduling for the next round of negotiations is “in flux,” because neither side appears willing to agree to concessions that would further progress. The South

Click here to go to original post. All rights reserved to the original post owner.