Markets fluctuated on Wednesday, as Fed Chairman Powell said at a European Central Bank conference in Portugal that the central bank was likely to gradually increase interest rates.
PayPal (PYPL) stock rose after announcing its $400 million acquisition of Hyperwallet, a global payout platform that helps businesses distribute funds received in online marketplaces to payees.
Jim Cramer: With GE It's So Difficult to Believe We Are at the Bottom
"We just can't get our arms around the stock of General Electric (GE) ," says TheStreet's Jim Cramer. "Last night, when GE was unceremoniously booted out of the Dow and replaced by Walgreens Boots (WBA) , the first thing I heard was 'this has to be the bottom.'"
"It's something we have heard every step of the way from when John Flannery replaced Jeff Immelt in August of last year when the stock as at $25. We heard it when Immelt could no longer continue to destroy the company now that Flannery was there. We heard it when the big estimate cut came in October. We heard it when the dividend was halved in November. We heard it when the giant long-term care charge was taken in January of this year," Cramer notes.
"The bottom. The bottom. The bottom. The bottom. So now we are supposed to believe that being kicked out of the Dow is the bottom? We need more than the irony of the last of old companies succumbing and being thrown out of the Dow after 111 years," Cramer adds.
Starbucks' Transition From Growth to Value May Be Brewing
"Store closures, we learned this morning, are now a reality for Starbucks (SBUX) , which operates more than 28,000 locations. The full content of this headline-grabbing news, which has the chain closing 150 stores next year and slowing growth plans, is already weighing on the stock...," says Real Money columnist Jonathan Heller.
"The bigger news here," observes Heller, "is that Starbucks also lowered same-store sales guidance for the quarter to just 1% from the previously expected consensus of 2.9%. The growth bloom for SBUX has really come off the rose, at least for now, and it will be interesting to see how the growth crowd reacts, not just today, but in the near and intermediate terms."
How to Protect Against a Treasury Selloff
From Real Money Pro columnist Ed Ponsi: "It's the end of the world as we know it. At least that's what you might believe if you read too much into various trade war scenarios. Let's face it, there are a variety of possible outcomes, but as the old saying goes, 'Hope for the best and prepare for the worst.'"
"With that in mind, let's examine a particularly nasty potential result -- the widespread dumping of U.S. Treasuries by foreign entities due to trade tensions. With the Fed cutting back its Treasury holdings, and the budget deficit expected to climb, the U.S. needs someone to finance its massive spending," says Ponsi.