Markets News Regulators 

One of the biggest indicators of an economic downturn might not be predicting one this time

“The U.S. Treasury yield curve has flattened for much of 2017, and spreads between long and short maturities recently narrowed to decade lows” writes Richard Turnill for businessinsider.com. The short end of the curve is mainly tied to market expectations for Federal Reserve (Fed) policy rates.Our BlackRock Growth GPS points to steady and above-trend developed market growth of around 2%.The flatter yield curve is not a recessionary signal, so what is it telling us?. Much of this year’s earlier yield curve flattening represented a reversal of the 2016 steepening that accompanied surging…

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UBS slashes Tesla profit estimates predicting more Model 3 problems

“UBS reaffirmed its sell rating on the electric car maker’s shares, predicting Tesla will continue to have issues producing its Model 3 vehicles” writes Alexandria Sage for cnbc.com. Langan reiterated his $185 12-month price target for Tesla shares, representing 42 percent downside to Friday’s close.In the third quarter, Tesla delivered 26,150 total vehicles and just 220 Model 3 cars versus the FactSet estimates of 25,860 and 1,260, respectively.The analyst lowered his profit estimates for the company due to the “slower Model 3 ramp.”.  Source: cnbc.com Share This:

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Research breakthrough raises hope of predicting future outbreaks

“Scientists studying links between the Ebola virus and deforestation have made a breakthrough that could lead to the development of an early warning system for outbreaks” writes Hannah Summers for theguardian.com. But now experts have discovered a striking correlation between forest loss and the timing of outbreaks, which could in future make it possible to identify areas at risk more effectively. Source: theguardian.com Share This:

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News Stocks 

J.C. Penney suffers worst stock drop ever after predicting loss

“J.C. Penney Co. shares tumbled the most since they began trading in 1980, hurt by deeper losses and a sense among investors that department stores are stuck in an intractable slide” writes Jonathan Roeder for sun-sentinel.com. The move spotlighted key problems for the department-store field: hard-to-sell inventory and a reliance on deep discounts to move stock. Source: sun-sentinel.com Share This:

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Hurricane Harvey more costly than Katrina, Sandy combined: Estimate

“President Trump on Tuesday was already predicting Harvey would be the most expensive disaster in U.S. history” writes Pete Kasperowicz for washingtonexaminer.com. Greg Abbott was predicting the cost of recovering from Harvey would likely exceed the costs of Katrina.On Thursday, AccuWeather founder Joel Myers said the cost of Harvey would exceed the combined costs of Hurricane Katrina and Superstorm Sandy, which had been the top two most expensive natural disasters to hit the United States. Source: washingtonexaminer.com Share This:

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Crypto News 

Bitcoin hits a record high near $3,500

“Get the latest Bitcoin price here” writes Jonathan Garber for businessinsider.com.au. Early buying propelled bitcoin to a high of $US3,486 before sellers managed to push it down to its current level of $US3,435, up 1.34%.Bitcoin survived the August 1 “fork” that split it in two, seeing only minimal losses when some were predicting a doomsday scenario.As for how high bitcoin can go, back in late-July, Sheba Jafari, the head of technical strategy at Goldman Sachs said the cryptocurrency had the “scope to reach 3,691.” Jafari has been spot on with…

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News Regulators 

Op-ed: This market indicator has predicted the past 7 recessions. Here’s where it may be headed next

“An inverted yield curve, which has correctly predicted the last seven recessions going back to the late 1960’s, occurs when short-term interest rates yield more than longer-term rates” writes Michael Nagle for cnbc.com. Why is an inverted yield curve so crucial in determining the direction of markets and the economy?. The last two times the yield curve inverted was in the years 2000 and 2006.The yield curve inverts when central banks believe inflation is headed higher; but bond investors are convinced of the opposite.Nevertheless, outside of these quantitative easing programs,…

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Kansas, Georgia takeaway: Special elections results mixed in predicting future

“The former is why much of political Washington poured over the results in two House special elections of late” writes Chad Pergram for foxnews.com. In recent years, both parties focused on a number of House special elections and tried to portray them as electoral bellwethers.Then there was the special election in Georgia for the seat formerly occupied by Health and Human Services Secretary Tom Price. Source: foxnews.com Share This:

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News Stocks 

CREDIT SUISSE: Chipotle’s stock isn’t going to recover any time soon

“Credit Suisse has a price target of $375 for Chipotle’s stock, down another 17% from its current level” reports businessinsider.com. Now, a team of equity analysts at Credit Suisse, led by Jason West, is predicting the firm’s E-coli woes will continue to weigh on the stock.CMG’s sales should show a sharp recovery in 1Q17 as it laps the first full qtr. of event-impacted sales.This more muted recovery scenario is factored into consensus estimates and reflected in the SSS targets outlined in mgmt’s latest incentive compensation plan.”.  Source: businessinsider.com Share This:

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