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Bank investors await U.S. stress test results for capital returns

“On June 29 last year, after banks released their capital plans following the stress test, the S&P 500 bank index ended the day 1.8 percent higher” writes Midwest Communications Inc for 95kqds.com. Payout levels and market reactions will vary from bank to bank, according to Mike Mattioli, portfolio manager at Manulife Asset Management in Boston.NEW YORK (Reuters) – U.S. investors expect banks and other financial institutions to announce large returns of capital to shareholders after the Federal Reserve publishes the first set of results from its annual “stress test” late…

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Morgan Stanley warns investors are in more danger of a market wreck than they realize and pinpoints one sector to stay safe

“Michael Wilson, Morgan Stanley’s chief equity strategist, is among those not counting on the stock market to have another stellar year” writes Akin Oyedele for businessinsider.com. One place he sees that is in a ranking of the performance of various corners of the market this year.The sector is preferred as a so-called bond proxy for its dividends, which should look more attractive if Treasury yields stay as low as Morgan Stanley forecasts.After all, if investors sensed it would pay to be more conservative, they’d be shifting their portfolios accordingly.Wilson said…

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Trade-war fears, Fed send 10-year Treasury yield lower

“The 10-year Treasury note yield TMUBMUSD10Y, -0.65% fell 2.2 basis points to 2.926%, trimming its weeklong decline to 1.1 basis points” writes Mark Decambre for marketwatch.com. While, the 30-year bond yield TMUBMUSD30Y, -0.43% shed 2.1 basis points to 3.048%, adding to a weeklong decline of 3.3 basis points.The two-year note yield TMUBMUSD02Y, -0.31% sensitive to Fed policy, fell 1.6 basis points to 2.557%, paring its weeklong climb to 6.2 basis points.The simmering trade fears pushed risky assets like stocks lower and drew investors into long-dated government paper, flattening the yield…

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MGM Growth Properties raised dividend, to an implied yield of 5.7%

“MGM Growth Properties LLC MGP, +0.86% said Friday it raised its quarterly dividend by 2.4%, to 43 cents a share from 42 cents a share” writes Reporter Editor for marketwatch.com. The real estate investment trust said the new dividend will be payable July 16 to shareholders of record on June 29.Based on Thursday’s stock closing price of $30.40, the new annual dividend rate implies a dividend yield of 5.66%, compared with the yield on the SPDR Real Estate Select Sector ETF XLRE, +0.20% of 3.35% and the implied yield on…

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A fourth Fed hike this year could trigger economic slowdown, strategist warns

“So when we get to a reported level of 2 percent for inflation, the usual central bank target, the inflation rate in reality will be only around 1 percent,” McCaughan argued” writes Natasha Turak for cnbc.com. While many may welcome the more hawkish stance from the Federal Reserve after a decade of record-low interest rates, one economist warned that it may actually lead to an economic slowdown.The Federal Reserve hiked rates for the second time this year Wednesday and is looking at two more for 2018 amid observations of a…

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US 2-year yield rises to highest since 2008 after Fed hikes rates; 10-year yield jumps back above 3%

“The 2-year yield hit its highest level since 2008 and the yield on the benchmark 10-year Treasury note rose to 3 percent, following the Fed’s announcement” writes Kate Rooney for cnbc.com. The yield on the 30-year Treasury bond was also in the green at 3.095 percent while the 5-year yield hit a fresh high of 2.857.Bond yields move inversely to prices.U.S. government debt yields rose Wednesday after the Federal Reserve hiked its benchmark short-term interest rate a quarter percentage point and indicated that two more increases are likely in store. Source:…

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Caterpillar’s stock raises dividend, to lift implied yield above its peers

“At current stock prices, the new annual dividend rate implies a dividend yield of 2.21%, compared with the SPDR Industrial Select Sector ETF’s XLI, -0.29% yield of 1.76% and the implied yield for the Dow Jones Industrial Average DJIA, +0.02% of 2.09%” writes Reporter Editor for marketwatch.com. CAT, -1.45% said Wednesday it will increase its quarterly dividend by 10%, to 86 cents a share from 78 cents a share. The stock has gained 1.3% over the past three months, while the industrial ETF has slipped 0.8% and the Dow has…

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Avocado prices in New Zealand hit all-time high

“New Zealand avocado lovers can expect to fork out a little more for their favourite brunch as the price of the fruit hit record highs last month” writes Charles Anderson for theguardian.com. Statistics New Zealand said the low yield affected the average retail prices of avocados.Statistics New Zealand said that the price of other fruit and vegetables, such as mandarins and broccoli, had dropped in the last month. The price of mandarins was down 35%, kiwifruit down 39% and broccoli down a nutritious 43%. Source: theguardian.com Share This:

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Treasury yields hold steady after auction glut

“A flattening curve is seen as a sign that the bond market is expecting an economic slowdown” writes Sunny Oh for marketwatch.com. The 2-year note yield TMUBMUSD02Y, +1.31% added 1 basis point to 2.539%, while the 30-year bond yield TMUBMUSD30Y, +0.04% fell 0.7 basis point to 3.093%.Market participants will chiefly focus on changes to the policy statement, the projections for interest rates, and Fed Chairman Jerome Powell’s press conference.If the central bank issues a hawkish policy stance, bonds bought before the meeting will lose their value, suggesting market participants aren’t…

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5 challenging questions Fed chief Powell may encounter

“Here are five questions that Powell might face: Is Bernanke right that the economy is Wile E. Coyote and what, if anything, can the Fed do about it?” writes Senior Economics Reporter for marketwatch.com. Former Fed Chairman Ben Bernanke said last week the stimulus is coming at “the very wrong moment” for the economy. Source: marketwatch.com Share This:

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