Stocks making the biggest moves premarket: FB, FDX, TSLA, NTRI, TVPT & more
- Nutrisystem – The weight loss program company agreed to be bought by Tivity Health for $1.3 billion in cash and stock.
- Tivity, a provider of fitness and health improvement programs, will pay $38.76 per share in cash and a little over a fifth of a Tivity share for each share of Nutrisystem, giving the deal an implied value of $47 per share.
- The Wall Street Journal reports that SQN is planning to send a letter to the online review company's board pushing it to add new members and to consider all options to get Yelp back on track, including a sale.
- Yelp issued a statement noting that SQN had provided the letter to the media before sending it to Yelp, but said it is committed to maintaining an open dialogue with SQN and other shareholders, and that it regularly evaluates opportunities to unlock its full business potential.
Apple falls further into the red for 2018 after Citi slashes target: 'Trade wars are bad for tech'
- Apple shares fell in premarket trading Monday after Citi slashed its price target to $200 a share, saying "trade wars are bad for tech stocks." The stock fell into the red for 2018 on Friday and is down 25 percent this quarter.
- Apple shares fell 0.6 percent in premarket trading from Friday's close of $168.49.
- Citi lowered its Apple price target to $200 a share from $240 a share.
- The firm does not expect Apple to miss its own expectations for December sales but said it sees Apple reporting "towards the lower end" of $89 billion sales.
- Citi posed the question "how low can Apple go?" In the firm's new bear case, Citi sees the stock falling as far as $125 a share if Apple's revenue growth slows to 2 percent to 3 percent a year and gross margins are much weaker than expected.
Google acquires Sigmoid Labs, developer of popular Indian app ‘Where is my Train’
- Google has acquired Sigmoid Labs, the company behind popular Indian travel app “Where is my Train,” the companies announced today.
- In a statement provided to VentureBeat, Google said that Bangalore-based Sigmoid Labs will be joining the company and will continue to work on the app.
- On the Google Play Store, Where is my Train has been downloaded over 10 million times and currently ranks as No. 1 in travel and location apps, according to analytical firm AppAnnie.
- “We can think of no better place to help us achieve our mission, and we’re excited to join Google to help bring technology and information into more people’s hands,” Sigmoid Labs said in a statement on its website.
- The project, which is now part of Google Station, is currently serving 8 million train commuters in India.
Bitcoin Price Recovers 12% in 72 Hours While Traders Remain Cautious in Short-Term
- Most major cryptocurrencies including Ethereum (ETH) and Bitcoin Cash (BCH) have been able to rebound from low double digits, as technical indicators started to demonstrate extremely oversold conditions.
- But, traders and technical analysts remain cautious towards the short-term price trend of cryptocurrencies until major resistance levels are broken.
- According to DonAlt, a prominent cryptocurrency technical analyst, until Bitcoin breaks out of the $3,700 resistance level, it will remain in a tight range between $3,300 to $3,600, unable to engage in a major price movement.
- Several analysts have reaffirmed that as long as the dominant cryptocurrency remains below $3,700 and struggles to demonstrate a major breakout, the market is at risk of dropping to a new yearly low.
- A proper bottom has not been established by BTC and other major cryptocurrencies, as well as small market cap ERC20 tokens, have not shown any signs of a large corrective rally.
Why Billionaire Investors Remain Positive on Long-Term Trend of Crypto
- For the most part, high profile individual investors are able to handle severe losses in emerging asset classes and high-risk assets like cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) because they account for a small part of their wealth and portfolios.
- In bear markets, retail traders often suffer a significant loss because they are unable to handle an 80 to 90 percent drop in value and are forced into a position to liquidate their holdings.
- Perhaps a bigger factor that has high net worth individuals remaining relatively positive on the long-term growth of the cryptocurrency market is the historical performance of Bitcoin.
- Throughout the past nine years, Bitcoin has suffered five bubble-crash-build-rally cycles wherein the dominant cryptocurrency dropped by about 85 percent on average and recovered to a new all-time high.
Australia stocks fall after China reported weaker than expected trade data
- Stocks in Asia traded lower Monday morning following significantly weaker-than-expected Chinese trade data released over the weekend.
- Japan's Nikkei 225 fell more than 2 percent in early trade while the Topix index dropped 1.88 percent.
- Shares of Japan Display plunged 9.09 percent in the morning after the company earlier said it had no plans to cut production of its smartphone panels in December, following reports which said it was planning to do so.
- Over in Australia, the ASX 200 fell 1.71 percent earlier in morning trade to touch lows not seen since Dec. 2016, with almost all sectors seeing losses.
- China reported notably weaker than expected November exports and imports, which pointed to slower global and domestic demand and raised the possibility that Beijing may undertake more measures to boost growth.
- November exports rose 5.4 percent from a year earlier, according to Chinese customs data on Saturday, which was below the 10 percent jump predicted by a Reuters poll.
Dow futures drop nearly 200 points as sell-off looks set to continue in new week
- U.S. stock futures fell on Sunday night as traders feared an intensifying trade war between the United States and China.
- The Dow, S&P 500 and Nasdaq Composite all posted their worst weekly performances since March last week as worries and confusion about the ongoing U.S.-China trade war and fears of an economic slowdown gripped Wall Street.
- Later that day, trade advisor Peter Navarro told CNN that Trump would "simply raise" tariffs on Chinese goods if a permanent deal was not struck after the 90 days.
- U.S. Trade Representative Robert Lighthizer warned on Sunday he considers March 1 — when the truce is scheduled to end — as "a hard deadline." He added that additional tariffs will be placed on Chinese goods if a deal is not reached by then.
The bear market is here, and stocks will plunge at least 20 percent, Ned Davis Research warns
- The wild trading that's gripped Wall Street may be no ordinary correction.
- According to Ned Davis Research's Ed Clissold, a bear market is officially here.
- A bear market is defined as an environment when overwhelming pessimism sparks a 20 percent drop or more from recent highs.
- In this case, it would wipe out 588 points from the S&P 500's all-time high of 2940.91 hit on Sept.
- Originally, Clissold called for a bear market to hit Wall Street in 2019, due to jitters over interest rate hike risks, U.S.-China trade tensions and slowing growth in earnings and the economy.
- By spring, Clissold said, the pain will be largely behind the Street.
- Despite the looming trouble, Clissold expects stocks will stage a healthy rally in the second half of 2019 and the market will ultimately see high single-digit to low double-digit gains by the end of next year.
Goldman Sachs: As long as consumers keep shopping, there's hope for the economy
- Although falling stocks and rising interest rates will continue to weigh on sentiment, those negatives are likely to be offset by higher wages and oil prices in retreat, Goldman said in a research note to clients Saturday.
- Rising interest rates will also dampen the outlook, the bank said, adding that growth will gradually decelerate from 2.8 percent in the first quarter to an average of 2.4-to 2.5 percent over 2019.
- With the Federal Reserve and the European Central Bank pulling back on loose money policies, "the good news is that tightening may be coming to a pause/end early next year which could bring relief to global asset prices particularly if China growth stabilizes," Morgan Stanley's analysts wrote.
- Still, economists point to the sharp drop in crude prices, which recently fell below $50 per barrel, as a boost for consumers.
America's farmers 'won't gain back everything' they've lost in Trump's trade war
- A cease-fire between the US and China sparked hopes that the world’s largest economies can scrap protectionist policies that have cast uncertainty on the American agriculture sector.
- To avoid a 25% tax on shipments from American soybean growers, for example, the Chinese have turned to other major producers like Brazil.
- Hart, an agricultural economist at Iowa State University, estimates soybean farmers could recover around half of market share over the next year if tariffs were lifted immediately.
- While the window for the US to fill the Chinese soybean market before Brazilian crops come online dwindles, key details on the framework for an agreement remain hazy.
- For American farmers, Hart said that would mean increasing both government and private purchases.
- After months of discounted prices and halted shipments, Iowa farmer and American Soybean Association president John Heisdorffer said the agreement was the first positive news for farmers since trade tensions began.