Streetbeat News

Credit Ratings

TBF

TBT

TBX

TMW

TTT

TYO

Bill Ackman, CEO of Pershing Square Capital Management, is shorting long-term U.S. Treasuries, predicting that 30-year yields could rise to 5.5%. He attributes this to structural changes in the economy that could trigger higher long-term inflation, the U.S. government's $32-trillion debt, and large deficits. He also mentions Japan's exit from yield curve control and concerns about US governance as potential factors. Several ETFs allow investors to take short positions on U.S. Treasury securities, including TMW, TBF, TTT, TBT, TBX, and TYO.

Portfolio Pulse from Piero Cingari

August 04, 2023 | 1:15 pm

AMD

AMZN

EMR

MSFT

TSLA

The S&P 500 and Nasdaq 100 closed lower after Fitch downgraded the U.S. government's credit rating. Advanced Micro Devices (AMD) shares fell 7% after issuing Q3 guidance below estimates, while Emerson Electric (EMR) shares gained 3.8% after reporting better-than-expected Q3 results and raising FY23 earnings guidance. Amazon (AMZN), Microsoft (MSFT), and Tesla (TSLA) also saw losses.

Portfolio Pulse from Lisa Levin

August 04, 2023 | 12:43 pm

EEMA

EWU

EZU

FLAX

SPY

US markets closed lower on August 2 after Fitch downgraded the long-term credit rating of the US, leading to a focus on rising Treasury yields. Major indices were not boosted by the better-than-expected ADP Employment Change report. Asian markets also closed lower due to profit-taking and uncertainty over the Bank of Japan's monetary policy. European markets are down as investors await the Bank of England's rate decision. Commodities are mixed, with crude oil and gold trading lower, while natural gas is trading higher. US futures are down.

Portfolio Pulse from Akanksha Bakshi

August 04, 2023 | 12:41 pm

AAPL

AMZN

CVS

HUM

The CNN Money Fear and Greed index showed improved investor sentiment, despite U.S. stocks closing lower on Wednesday. This was after Fitch downgraded the U.S.'s long-term credit rating. CVS Health Corporation and Humana Inc. reported better-than-expected Q2 results, while investors are awaiting earnings results from Amazon.com, Inc., Apple Inc., and Kellogg Company.

Portfolio Pulse from Lisa Levin

August 04, 2023 | 12:36 pm

DVN

Despite a historic plunge in U.S. crude inventories, oil prices fell by 3.4% due to broader market turmoil triggered by Fitch's downgrade of the U.S. government's top credit rating. Shares of Devon Energy Corp (NYSE:DVN) sank more than 7%, but the company's generous dividend yield of 9.10% makes it attractive for income investors. An investment of about $65,934 in Devon Energy would translate into a $500 dividend payout each month.

Portfolio Pulse from AJ Fabino

August 04, 2023 | 12:22 pm

SPGI

Fitch Ratings has downgraded the U.S. credit rating from AAA to AA+ due to fiscal concerns, perceived governance decline, and increased political polarization. The decision was criticized by U.S. Treasury Secretary Janet Yellen and White House economic advisor Jared Bernstein as arbitrary and based on outdated data. To regain its previous rating, the U.S. would need to stabilize its debt-to-GDP ratio and possibly permanently suspend the debt ceiling, according to Fitch.

Portfolio Pulse from Piero Cingari

August 04, 2023 | 12:15 pm

BOTZ

NUGT

SMH

TAN

TLT

TQQQ

UVXY

US Treasury yields surged due to Fitch's downgrade of the US sovereign credit rating and elevated issuance plans. The downgrade was due to concerns over fiscal deterioration, growing government debt, and governance erosion. The Treasury Department plans to issue $103 billion in its quarterly refund next week. Seven ETFs experienced significant volatility, including iShares 20+ Year Treasury Bond ETF (TLT), ProShares UltraPro QQQ (TQQQ), VanEck Semiconductors ETF (SMH), Invesco Solar ETF (TAN), ProShares Trust Ultra VIX Short Term Futures ETF (UVXY), Direxion Daily Gold Miners Index Bull 2X Shares (NUGT), and Global X Robotics & Artificial Intelligence ETF (BOTZ).

Portfolio Pulse from Piero Cingari

August 04, 2023 | 12:10 pm

AMX

DIS

MAX

Communication services stocks are trading lower due to negative market sentiment following Fitch's downgrade of the U.S. long-term credit rating.

Portfolio Pulse from Benzinga Newsdesk

August 04, 2023 | 12:04 pm

ARMK

CZR

DENN

HTHT

SCI

TAL

WYNN

YUMC

Shares of hotel, restaurants and leisure stocks are trading lower amid recession fears following a downgrade of the U.S. credit rating. This impacts a range of companies including ARMK, CZR, DENN, HTHT, SCI, TAL, WYNN, YUMC.

Portfolio Pulse from Benzinga Newsdesk

August 04, 2023 | 12:04 pm

Boeing's shares are trading lower due to overall market weakness following Fitch's downgrade of the U.S. long-term credit rating.

Portfolio Pulse from Benzinga Newsdesk

August 04, 2023 | 12:03 pm