Finance

A vexing question for Watson: Why is IBM surging?

Here’s a vexing question for artificial mega-brain Watson: Why is IBM stock surging? Big Blue’s market value rose about $6 billion after the computer giant agreed on Thursday to buy Truven Health Analytics for $2.6 billion. Giving IBM’s artificial-intelligence platform more data to chew on is useful, but investors’ glee over an opaque addition to an enigmatic business effort is ... Read More »

Don’t panic about market volatility: Jack Bogle

Don’t panic and don’t worry about calling a bottom, Jack Bogle, founder of the Vanguard Group, told CNBC’s “Power Lunch” on Wednesday. Bogle told CNBC in January that investors should stay the course in this volatile market. While he said Wednesday that there are no guarantees in the stock market, he urged investors to not exit the market when it’s ... Read More »

‘Simple’ data is the key to economy: UBS economist

Upbeat economic data haven’t made for upbeat markets in 2016. Much of the focus, according to Drew Matus, deputy chief U.S. economist at UBS, has been on GDP. But his key to the U.S. economy is diving into “simple data” like weekly jobless claims. “If claims don’t go up, nothing bad is happening,” Matus told CNBC’s “Worldwide Exchange” on Thursday. ... Read More »

Should you be worried about Activision?

Activision-Blizzard broke an incredible streak Thursday when it reported its disappointing fiscal fourth-quarter results. For the first time in 10 years, it missed its revenue guidance, said Michael Pachter of Wedbush Securities. And if it hadn’t been for a congressional decision in December to reinstate investment tax credits for increasing research spending, it would have missed its earnings per share ... Read More »

Top tech investor Meeks: Buy Amazon on dip

Getty Images Boxes move along a conveyor belt at an Amazon fulfillment center in Tracy, California. There’s value in some of the technology leaders, so I wanted to embrace them. If I don’t make a “trade” when I think it’s compelling, then shame on me. Active managers should be active. And that’s what I’m doing for my CNBC Pro “Platinum ... Read More »

Measured in snacks, consumer spending is just fine

The U.S. consumer is relatively financially healthy, despite turmoil in stock markets — at least if you measure in gas station snacks, according to one PepsiCo executive. “The U.S. consumer is doing just fine,” Hugh Johnston, Pepsi’s vice chairman and chief financial officer, told CNBC’s “Squawk on the Street” Thursday. Thanks in part to lower gas prices and improved employment, ... Read More »

Mortgage rates could cross a record low

Who knew? The Federal Reserve raised its funds rate barely two months ago, and all that worry about higher interest rates for mortgage borrowers ended up being positively unwarranted. The average rate on the popular 30-year fixed mortgage began a free fall, reacting to financial markets overseas rather than monetary policy here at home. “Mortgage rates are going down again, ... Read More »

House flipping: Deja vu all over again

House flipping is always hottest when home prices are nearing a peak. That is not the case right now nationally, and so flipping has remained pretty stable overall … with two very glaring exceptions. Las Vegas and Miami. Sound familiar? They should. These two markets may well have been the poster children for the flip trade during the last housing ... Read More »

Ford CEO: Auto industry is being underestimated

Jim Cramer discovered a curious disconnect with the auto industry and wondered if it could be a sign of an impending recession. For months, the stocks of automakers have been crushed, even as car sales have reached record levels. Cramer thinks this could be due to investor fears that the industry could be peaking in the United States. To gain ... Read More »

Lynn Tilton is stepping down from credit funds

Adam Jeffery | CNBC Lynn Tilton, CEO of Patriach Partners. Private equity investor Lynn Tilton is stepping down as collateral manager of all her credit funds, totaling more than $2 billion, after years of litigation with New York bond insurer MBIA. Tilton will temporarily remain in charge of three credit funds, sequentially named “Zohar,” until investors in those funds select ... Read More »