Business

The recent rally in small-cap stocks has sparked debate among market experts. While some see it as a simple diversification move by investors looking to spread risk across asset classes, others believe it could signal a more sustained shift in market sentiment. ETF reporter Dave Nadig suggests that the influx of money into small caps is part of a broader trend toward portfolio diversification. As investors navigate an uncertain economic and political landscape, they are increasingly looking to reduce concentration risk. The upcoming presidential election has further amplified this trend, with investors looking to protect their portfolios from potential volatility. However, Nadig cautions against prematurely declaring a sustained bull market for small caps. While the Russell 2000 has outpe...

Federal Reserve Chairman Jerome Powell announced Monday that the central bank does not plan to wait for inflation to hit 2% before cutting interest rates. In a speech at the Economic Club of Washington, D.C., Powell noted that central bank policies have “long and variable lags,” justifying why the Fed will not delay action until it reaches its target. “If you’re waiting for inflation to hit 2%, you’ve probably waited too long, as the current tightening could push inflation below that threshold,” Powell said. Instead, the Fed is aiming for “greater confidence” that inflation will return to 2%, he added. “The improved inflation data we’ve seen recently reinforces that confidence,” Powell said. He also said a “hard landing” for the U.S. economy is unlikely. Monday marked Powell’s first publi...

This morning, several stocks are showing considerable movement in pre-market trading. These early changes can set the tone for the rest of the trading day, offering insights into investor sentiment and potential market trends. Crowd Strike (CRWD) CrowdStrike shares rose in pre-market trading after the release of its latest quarterly earnings report. The cybersecurity company beat Wall Street expectations for both earnings and revenue, citing strong demand for its cloud-native endpoint protection platform. Analysts are bullish on CrowdStrike’s future growth, especially as cybersecurity threats continue to grow globally. American Express (AXP) American Express also saw significant premarket activity, with shares rising after the company reported better-than-expected earnings. The f...

Elliott Management recently acquired a significant stake in Starbucks and is working with the company’s management to improve its stock, according to a report published Friday by the Wall Street Journal, citing people familiar with the matter. Elliott representatives declined to comment. As of its last statement on March 31, the hedge fund did not hold any Starbucks shares. A Starbucks spokesperson said the company does not respond to rumors or speculation. Despite that, Starbucks shares rose more than 6% on Friday. Elliott Management, known for its influential role in activist investing, is one of the world’s largest hedge funds. The firm has made several substantial investments in recent months, including positions in Southwest Airlines, SoftBank, Johnson Controls and Musical Instrument...

Travelers wait in line at a Delta Airlines counter at Ronald Reagan National Airport in Arlington, Virginia, on July 19, 2024. Airlines around the world have been severely disrupted by a major global computer outage, which has caused chaos at airports. Delta Airlines CEO Ed Bastian has issued an apology and offered frequent flyer miles to affected travelers after thousands of flights were canceled due to a global computer outage Friday. The disruptions have drawn criticism from Transportation Secretary Pete Buttigieg. According to aviation data firm OAG, Delta canceled more than 4,600 flights from Friday through Sunday, more than any other airline. By Monday morning, Delta had canceled another 700 flights, representing 19% of its core flights and more than half of all cancellations in the...

The International Monetary Fund (IMF) has tempered expectations for rapid interest rate cuts, warning of increased inflation risks that could extend the Federal Reserve's tightening cycle. While recent data have shown a cooling of headline inflation, the IMF points out that underlying pressures, particularly in services and wages, remain persistent. This suggests that the path to lower inflation may be more arduous than expected. The IMF's cautious stance contrasts with market sentiment, which has been leaning toward multiple rate cuts this year. However, the fund's chief economist, Pierre-Olivier Gourinchas, has indicated that a more gradual approach to monetary easing may be needed. The U.S. economy is forecast to grow at a slower pace of 2.6% in 2024, as cooling consumer spending and a...

In an interview with Bloomberg Businessweek, Republican presidential candidate and former U.S. President Donald Trump said he would allow Federal Reserve Chairman Jerome Powell to complete his term if he won the upcoming November election. “I would let him do it, especially if I thought he was doing the right thing,” Trump said. President Joe Biden reappointed Powell to a second four-year term as head of the Federal Reserve in May 2022. Powell, who is also Fed chairman, will remain in that role until January 31, 2028. The statement represents a significant shift for Trump, who previously clashed with Powell during his presidency. Powell, who began his term as Fed chairman in February 2018, has often been criticized by Trump for his approach to interest rate policy. In 2019, Trump openly c...

Several stocks have seen significant mid-day changes in the market today. Among them are CrowdStrike, Plug Power, and Comerica. Here's a closer look at the major players making headlines. Crowd Strike (CRWD) CrowdStrike has seen a substantial increase in its stock price, driven by an upbeat earnings report that beat Wall Street expectations. The cybersecurity company reported stronger-than-expected revenue growth and issued positive guidance for the coming quarters. Investors responded favorably to the company’s solid performance and upbeat outlook, sending its shares up more than 10% at midday. Plug power supply (PLUG) Plug Power shares fell sharply after reporting their quarterly earnings. The hydrogen fuel cell company reported a wider-than-expected loss, disappointing i...