Investors are growing more concerned as parts of the yield curve start to steepen

From Yun Li:
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NASDAQ:TLT June 27, 2019 5:51pm

Why JP Morgan says the market rally is limited under current conditions

From Yun Li:
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NYSE:SPY June 26, 2019 2:23pm

Goldman Sachs says value investing can still be done but there’s a catch

From Yun Li: For some, value investing has been left for dead after years of underperformance. However, Goldman Sachs says there's still life left in the classic factor strategy, especially with the Fed set to cut rates again.
NYSE:IVE June 24, 2019 4:21pm

Is value investing a thing of the past?

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From Yun Li : Value investing might have lost its value.
NYSE:IVE

Semiconductor stocks drop following Commerce Department barring purchases from Chinese companies

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From Yun Li:
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NYSE:XSD June 21, 2019 2:32pm

UBS says that even if the Fed cuts rates, it may not boost markets

From Yun Li:
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INDEXSP:.INX June 18, 2019 2:26pm

Goldman Sachs says tech stocks are too expensive

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From Yun Li:
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NYSE:XLK June 17, 2019 6:38pm

Why investors don’t believe in this market rally

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NYSE:DIA June 11, 2019 7:02pm

Goldman Sachs (GS) believes it’s unlikely that the Fed will cut rates

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From Yun Li:
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NASDAQ:TLT June 10, 2019 4:03pm

Stocks continue to rally after US and Mexico reach a deal on tariffs

Report: China halts purchases of U.S. soybeans

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From Yun Li:
NYSE:SOYB May 30, 2019 3:41pm

The semiconductor sector plummets on news of government restrictions concerning Huawei

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From Yun Li:
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  • Shares of chip suppliers are under pressure following the Trump administration's restrictions on doing business with Huawei.
  • Google has suspended business activity with the Chinese giant. Other Huawei suppliers, including Qualcomm, Broadcomm and Intel, reportedly told employees they will not sell to the Chinese firm until further notice.
  • U.S. chip suppliers are losing a big customer as Huawei purchases $20 billion of semiconductors each year, according to an Evercore estimate.
A sell-off in chip stocks intensified Monday following a report that semiconductor makers are cutting ties with Huawei following restrictions imposed by President Donald Trump's administration.
The U.S. Commerce Department last week blacklisted Huawei and effectively halted its ability to buy American-made parts and components. In wake of the restrictions, Google has suspended business activity with the Chinese giant. Other Huawei suppliers, including Qualcomm, BroadcomIntel and Xilinx, told employees they will not sell to the Chinese firm until further notice, according to Bloomberg News.
U.S. chip suppliers are losing a big customer as Huawei, the world's largest provider of telecom equipment, purchases $20 billion of semiconductors each year, according to an Evercore estimate.
Shares of Xilinx tumbled nearly 5% on Monday, while Qualcomm stock dropped nearly 5%. Shares of Analog Devices, Broadcom, Advanced Micro Devices are all under pressure following the Huawei ban. The VanEck Vectors Semiconductor ETF are down more than 3% on Monday, almost 15% below its intraday all-time high. All but one component of the ETF is correction levels or worse as of Monday and almost half the 25 stocks is in bear market levels. "Let's be clear - we are talking tens of billions of dollars impact," said C.J. Muse, senior equity research analyst at Evercore, in a note on Saturday. "Loss of this business would slow down investments by U.S. chipmakers, thereby reducing the competitiveness of the U.S. semiconductor industry - and that is a national security issue that the U.S. government needs to consider as well." U.S. restrictions could particularly hurt companies that have meaningful revenue exposure to 5G and the Chinese market, according to RBC analyst Mitch Steves. Analog Devices has 12.5% of revenue exposure to 5G, while Skyworks SolutionsQorvo, Broadcom, Qualcomm and Xilinx are all relying on the growth from 5G infrastructure, Steves said. Advanced Micro Devices and Nvidia are the two companies responsible for high-end data center computing, the analyst said. "We view the Huawei and China/US relationship as a negative overhang on the semiconductor space and a lift of either would likely send the semiconductor industry materially higher (5-10% in our view)," Steves said in a note on Sunday. The administration's move to cut off Huawei's access to U.S. technology followed its tariff hike on $200 billion worth of Chinese goods earlier this month, which sent the semiconductor sector into a downward spiral. "This decision was likely a negotiation tactic by the Trump administration to bring China back to the table," Evercore's Muse said. "The clear risk here is that while President Trump believes he has achieved leverage in the negotiations, we may have pushed China past the precipice and that the current technology cold war gets engrained and accelerates." -- CNBC's Michael Bloom contributed to this report.

The VanEck Vectors Semiconductor ETF (SMH) was trading at $102.23 per share on Monday afternoon, down $3.20 (-3.04%). Year-to-date, SMH has gained 4.52%, versus a 7.08% rise in the benchmark S&P 500 index during the same period. SMH currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #16 of 81 ETFs in the Technology Equities ETFs category.
This article is brought to you courtesy of CNBC.
NYSE:SMH May 20, 2019 1:10pm

Dow Jones Industrial Average falls 300 points due to the tariff battle with China

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From Yun Li : Stocks fell on Friday, extending this week's sell-off, after President Donald Trump said there's "absolutely no need to rush" on a trade agreement with China and tariffs will make the United States "much stronger."
INDEXDJX:.DJI May 10, 2019 1:23pm

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