Streetbeat News

Credit

SPY

Moody's has warned that a U.S. government shutdown would be credit negative for the U.S. sovereign, according to Reuters.

Portfolio Pulse from Benzinga Newsdesk

September 25, 2023 | 5:16 pm

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The Federal Reserve's commitment to maintaining higher interest rates has led to a surge in yields across all maturity periods, impacting long-term Treasury yields and shaking five Treasury ETFs. The iShares 20+ Year Treasury Bond ETF (TLT), SPDR Portfolio Long-Term Treasury ETF (SPTL), Vanguard Long-Term Treasury ETF (VGLT), iShares 7-10 Year Treasury Bond ETF (IEF), and iShares 10-20 Year Treasury Bond ETF (TLH) all experienced declines.

Portfolio Pulse from Piero Cingari

September 25, 2023 | 5:14 pm

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Federal student loan repayments are set to resume in October, potentially impacting consumer spending patterns and causing financial stress for nearly 44 million Americans. According to a survey by Jefferies, sectors such as apparel, accessories, restaurants, and footwear could face headwinds. Companies like Lululemon Athletica Inc, Foot Locker Inc, and Urban Outfitters, Inc are most exposed to spending cutbacks. However, companies like Walmart Inc, Costco Wholesale Corporation, and TJX Companies Inc are expected to navigate these headwinds effectively due to their established footing in value retail.

Portfolio Pulse from AJ Fabino

September 25, 2023 | 4:17 pm

AT&T Inc. (NYSE:T) shares are trading slightly lower due to concerns about future rate hikes following last Wednesday's FOMC statement and lower-than-expected initial jobless claims data. The company's substantial debt and heavy investments in network infrastructure could lead to higher interest expenses if the Federal Reserve signals future interest rate hikes. This could reduce AT&T's profitability and potentially strain its finances. The company's stock is also known for its dividend payments, which could become less attractive compared to fixed-income investments like bonds when interest rates rise.

Portfolio Pulse from Henry Khederian

September 25, 2023 | 4:13 pm

Verizon Communications Inc. (VZ) shares are trading lower due to concerns about future rate hikes following the recent FOMC statement and lower-than-expected initial jobless claims data. The company's significant debt obligations and financing needs could lead to higher borrowing costs if the Federal Reserve signals future interest rate hikes. This could reduce Verizon's profitability and impact its stock price. Additionally, rising interest rates could make fixed-income investments like bonds more attractive than dividend-paying stocks like Verizon, potentially putting downward pressure on its stock price.

Portfolio Pulse from Henry Khederian

September 25, 2023 | 3:29 pm

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The Chinese real estate sector is facing continued troubles, sparking fears of a potential global market rout. China Evergrande Group Limited (OTC:EGRNF) cancelled a creditor meeting due to disappointing sales, causing its shares to drop by 25%. Other property developers such as Country Garden Group Limited (OTC:CTRYF) and Longfor Group Holdings Limited (OTC:LNGPF) are also feeling the squeeze, with Country Garden's shares down 7%. The situation is drawing comparisons to the 2008 banking crisis, with concerns that it could impact global growth.

Portfolio Pulse from Daniel Harrison

September 25, 2023 | 3:03 pm

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BIIB

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Several significant business events have occurred. Ford of Canada has reached a collective agreement with Unifor union, including wage increases and pension improvements. Amazon has invested $4 billion in AI startup Anthropic. PhonePe, backed by Walmart, has launched the Indus AppStore Developer Platform to challenge Google's dominance in India. Goodyear plans to redefine its operational presence in the Asia Pacific region. Pfizer's RSVpreF vaccine has been recommended by the CDC for pregnant people. Mercedes Benz has partnered with Mastercard to introduce in-car digital payments. Novartis plans to spin-off the Sandoz business. Eisai and Biogen's Alzheimer treatment Leqembi has been approved in Japan. Alcoa has appointed William F. Oplinger as President and CEO. TransCode Therapeutics' stock is trading higher after positive results with its therapeutic candidate, TTX-MC138. Tyson Foods and Perdue Farms are under investigation over alleged child labor violations. OpenAI has unveiled a new feature for its ChatGPT application, enabling verbal responses. Apple's iOS 17 update allows users to opt for a search engine other than Google. Austrian Airlines faced backlash for making inaccurate environmental claims.

Portfolio Pulse from Vandana Singh

September 25, 2023 | 2:58 pm

LCID

Lucid Group Inc's shares hit a new 52-week low of $4.97 amid concerns about future rate hikes following the FOMC statement and lower-than-expected initial jobless claims data. The EV industry, including Lucid, requires significant capital investment, and potential interest rate hikes could increase borrowing costs, reducing profitability and potentially impacting the stock price negatively. The Federal Reserve maintained the federal funds rate within the 5.25% to 5.5% range at its September meeting.

Portfolio Pulse from Henry Khederian

September 25, 2023 | 2:56 pm

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The U.S. State Department has announced a $2B Foreign Military Financing Direct Loan Agreement with Poland. This agreement is expected to strengthen the military ties between the two countries.

Portfolio Pulse from Benzinga Newsdesk

September 25, 2023 | 2:09 pm

SPY

Chicago Fed's Goolsbee has expressed that concerns over an inverted yield curve may not take into account possible differences in the post-pandemic economy. This statement was reported by CNBC.

Portfolio Pulse from Benzinga Newsdesk

September 25, 2023 | 12:43 pm