Blog

Even as focus turns to the upcoming presidential election, Morgan Stanley thinks the business cycle will matter more for stock picking. The recent rise in yields following optimistic economic data, including last week's wholesale inflation report, could indicate that the bond market is beginning to part with some of the growth concerns on the hope that the economy is on stable footing, equity strategist Michael Wilson wrote in a research note Monday. He added that this trend provides greater confidence in cyclical stocks, which are positively correlated to upward moves in the 10-year Treasury yield. Wilson expects both rates and economic data to support cyclical stocks. The group should also benefit from a rebound in capital market activity, an improved lending environment and a pickup in ...

Patrick Collison, CEO and co-founder of Stripe, speaking at 2022's Italian Tech Week in Turin, Italy.Giuliano Berti | Bloomberg | Getty ImagesFounders of some of Europe's largest technology unicorns on Monday backed an open letter calling for a "tech renaissance" fueled by the creation of a single pan-European entity to promote startups and innovation in the bloc.The list of entrepreneurs backing the proposal includes the likes of Patrick Collison, CEO of payments tech giant Stripe; Taavet Hinrikus, co-founder of money transfer app Wise and venture capital firm Plural, and Eléonore Crespo, CEO of French accounting software unicorn Pigment.The letter was also signed by VC firms Index Ventures, Sequoia and Seedcamp."The multitude of countries and cultures in Europe is its unfair advantage. B...

Bill McDermott, Chairman, President & CEO ServiceNow, speaking on CNBC's Squawk Box at the World Economic Forum Annual Meeting in Davos, Switzerland on Jan. 17th, 2024. Adam Galici | CNBCEnterprise software giant ServiceNow and AI-focused startup CoreWeave announced plans to invest billions of dollars in the U.K., in a vote of confidence for Prime Minister Keir Starmer as he looks to attract foreign investment.ServiceNow said it would invest $1.5 billion in the U.K. over the next five years, as it grows its U.K. business. The U.S.-based company plans to expand its U.K. presence with new office space and grow its staff base beyond the 1,000 people it currently employs.ServiceNow also said it would invest the cash into localizing the processing of data for its large language models (LLMs...

Crude oil futures fell nearly 2% on Monday after OPEC cut its demand forecast for 2024 for the third time in a row.OPEC now sees demand growing by 1.9 million barrels per day in 2024, down from 2 million bpd in its previous forecast, according to a report released Monday. The group expects demand to grow by 1.6 million bpd in 2025, compared with 1.7 million bpd previously.Here are Monday's energy prices:West Texas Intermediate November contract: $74.08 per barrel, down $1.48, or 1.96%. Year to date, U.S. crude oil has gained more than 3%.Brent December contract: $77.58 per barrel, down $1.46, or 1.85%. Year to date, the global benchmark has risen nearly 1%.RBOB Gasoline November contract: $2.1035 per gallon, down 2.24%. Year to date, gasoline is little changed.Natural Gas November contract...

Travelers check in at a Southwest counter at Hartsfield-Jackson Atlanta International Airport (ATL) in Atlanta, Georgia, US, on Tuesday, July 23, 2024.Elijah Nouvelage | Bloomberg | Getty ImagesElliott Investment Management has requested a special meeting at Southwest Airlines, formalizing the launch of a long-signaled proxy fight for control of the carrier's board.The activist is seeking a meeting date of Dec. 10, it said Monday. Elliott has also trimmed the size of its board slate from 10 director candidates to eight, after Southwest shrunk its board size from 15 to 12.CNBC reported last month that Elliott was preparing to call a special meeting.Southwest's campaign will be Elliott's first U.S. proxy fight since it took on Arconic in 2017.Elliott has an 11% stake in the airline and is se...

Here are the biggest calls on Wall Street on Monday: TD Cowen reiterates Nvidia as buy TD said Nvidia remains a top pick at the firm. "NVIDIA Is Our Team's Top Pick, the Far and Away Tech Leader in AI." Mizuho reiterates Advanced Micro Devices as outperform Mizuho says it's sticking with the stock following its AI day last week. "With AMD gaining server share, a potential PC rebound and upcoming AI product launches, we see a base case PT of $19..." Mizuho reiterates Broadcom as outperform Mizuho raised its price target on the stock to $220 per share from $190. " AVGO OpenAI AI Chip win could be Potentially > $16B opportunity into 2H25-26E." Goldman Sachs upgrades Ibotta to buy from neutral Goldman Sachs reiterates Alphabet as buy Goldman lowered its price target on the stock to $208 per...

Here are the most important news items that investors need to start their trading day:1. Running to recordsU.S. stocks have taken a steady climb to new records. The S&P 500 and Dow Jones Industrial Average both notched their highest closes ever on Friday. Both of those indexes and the Nasdaq Composite rose more than 1% last week. As investors monitor the U.S. presidential election, conflict in the Middle East and Federal Reserve policy, a major string of earnings will also help to determine whether stocks continue their record run. Follow live market updates here.2. Banking on earnings Goldman Sachs CEO David Solomon joins CNBC's 'Halftime Report' to discuss the latest market trends as financials head for their worst day since August 5, and his outlook on the overall economy on Sept. 1...