How much healthier the Financial System has become, the Federal Reserve gave the biggest u. S. Banks the green light to use their extra capital for stock buy backs and more dividends. Good news for investors looking for extra income. Kayla has more on the final results of the Central Banks socalled stress test. For the First Time Since the financial crisis, the Federal Reserve has not rejected any of the capital plaps submitted by the 34 banks getting stress testing, b finding the companies to be sufficiently capitalized while weathering a recession. Capital one is required to resubmit its plan within six months or risk shareholder payouts getting frozen. It exceeded the threshold, but didnt want adjusted returns before the results were out last thursday. American express did the same as one of its capital levels was below the fed threshold. Senior officials said the rapid growth in credit card balances and uptick in delen quincies that included more severe losses played a role. Am ex
And happy birthday to the iphone ten years ago today steve jobs unveiled a product that changed the way we all live. But what will the next iphone bring . What could be smarter than the iphones weve got now . Well explore that and more as power lunch begins right now welcome to power lunch. Im michelle carusocabrera. Nasdaq is the biggest loser percentagewise and nearly 2 decline. Dow jones is on track for the biggest oneday drop since midway bob pisani is at the nyse. Whats going on . Its a good sign of rotation in the market. Thats what has been keeping up stocks all year. Semiconductors are the losers today. What have been the losers . Banks and energy what are among the few winners today . Banks and energy this is rotation, folks. Were seeing heavy volume. The triple q, big volume there thats a sign that people are using it to buy other things meantime, value and growth are getting a lot of interest. Whats value mostly energy. Growth is a problems txy for fa stocks, so your apple a
The dow gaining to a record high, but not holding on. The sector groups are performing well today, you can see there are for Industry Groups lower and seven higher. Energy and financials leading the way. Financials expending extending their advance. This is after the big u. S. Banks pass the stress test and got approval to return cash through dividends and buybacks. Plenty of things for investors to like about financials, including rising bond yields as well. Terms of Actual Company specific news, quite a few developments on the m a front. Online personal finance Company Getting taken over by red ventures for 14 a share, and allcash deal. Eq to getting a boost up by 2 took a 12 partners stake in the company. It wants to separate its operations incentivizing bryce energy. And carmakers coming out with news today, elon musk indicating through twitter that the model three sedan is ahead of schedule and will probably come in on schedule. Company hasr the missed to so many deadlines when it
G20 bond sell off continues in the u. K. In japan, italy, germany and here and oil is reversing some of yesterdays losses our road map begin with after a strong start to the second half stocks are stalling. Markets set to open lower amid signs of a tech rally and lowing sector hiring last month president bullish on u. S. Markets as he prepares to meet merkel, putin at the g20. Shares of costco climbing in the premarket stronger than expected june sales. Futures moving lower ahead of tomorrows key jobs number shows the private sector added 158,000 jobs in june meanwhile jobless claims fell still near historic lows well see what it means for tomorrow. Historic loes and some of the minutes yesterday, some of the deviciveness still lead me to believe there would be a rate hike which is what we need its not talking to north korea. You saw the futures go down. They actually rally. I dont want to put too much on that. I think that the fed minutes created a little bit of a flurry some thought
Disclosure, Nbc Universal does own a stake in snap. Blue apron are getting hit the stock is down 20 since the debut in late june a sign of trouble for Companies Looking to go public or not . Lets bring in eric gordon business pro fet fessor whose focus is on ipos happy friday you to both eric, i think your larger point about snap anyway is in a it highlights the degree of difficulty when you were forced to compete with the likes of a facebook yeah. You know, its great that snap is an innovator. The question is, can you be an innovator that makes money in the face of somebody who can imitate your innovation. I mean its an innovation. But its not all that hard to do somebody with a lot of money and a giant user base, user base being sort of the source of your revenue, you have to compete with them. I mean, can you actually do it im wonlderidering is how mua resetting of the expectations of how great the companies r people are talking is snap the next facebook or at which timer maybe its