November 30, 2022

JPMorgan wants to handle more of the $500 billion in annual US rent payments with its new platform

A ‘For Rent’ sign is posted near a home on February 07, 2022 in Houston, Texas.

Brandon Bell | Getty Images

JPMorgan Chase has been testing software it created for landlords and tenants that automates online rent payments, Sam Yen, chief innovation officer of JPMorgan’s commercial banking division, told CNBC.

Property managers and renters don’t need to be JPMorgan customers to sign up for the platform when it is released more broadly next year, Yen said.

Digital payments have taken over more of the world’s transactions, boosted in recent years by the pandemic, but there is one corner of commerce where paper still reigns supreme: the monthly rent check. That’s because the market is highly fragmented, with most of the country’s 12 million property owners running smaller portfolios of fewer than 100 units.

As a result, about 78% are still paid using old-school checks and money orders, according to JPMorgan. More than 100 million Americans pay a combined $500 billion annually to live in rentals, the bank said.

—Hugh Son

Barclays downgrades Amgen ahead of obesity drug update

Barclays says investors should sell shares of Amgen ahead of its update for its obesity drug slated for next week.

Analyst Carter Gould said in a note to clients Monday that despite the stock’s recent outperformance, investors have seen “sparse initial data” on the company’s drug.

CNBC Pro subscribers can read more on Barclays’ downgrade here.

— Sarah Min

Paramount falls 3% on Wells Fargo downgrade

Shares of Paramount shed more than 3% in premarket trading Monday after Wells Fargo downgraded the entertainment stock to underweight and said shares can fall more than 30%.

“We’re downgrading PARA to Underweight as we can no longer justify its premium multiple amid our more negative view on linear trends and an uncertain DTC outlook,” wrote analyst Steven Cahall.

CNBC Pro subscribers can read the full story here.

— Sarah Min, Samantha Subin

Home Depot has long-term opportunity with Pro business

Despite the current macro backdrop, Home Depot has the right strategy for long-term growth, Citi said in a note Monday.

In particular, the retailer’s Pro business, which targets professionals with larger, planned orders, is just “scratching the surface vs. the long-term potential,” wrote analyst Steven Zaccone.

“The planned purchase opportunity with the large pro is adding incremental sales and margin dollars to the business today, but is still very nascent,” he said. “After 4+ years of investment and growing traction, we believe the business is on the cusp of gaining momentum over the next several years.”

Home Depot, down 28% year to date, has nearly 14% upside to Citi’s price target.

Brazilian stocks fall after Lula’s stunning win

The $5.5 billion iShares MSCI Brazil ETF (EWZ), the largest exchange-traded fund tracking Brazilian stocks, lost about 2.5% in premarket trading Monday after Brazilians delivered a very tight presidential victory to Luiz Inácio Lula da Silva. The election gave the leftist former president another shot at power in a rejection of incumbent Jair Bolsonaro’s far-right politics.

— Yun Li

Wynn Resorts, XPO Logistics, Petrobas among stocks moving in the premarket

These are the stocks making the biggest moves during Monday’s premarket trading session.

Wynn Resorts — Shares of the casino stock surged more than 6% in the premarket on news that investor Tilman Fertitta has taken a 6.1% stake in the resort operator, according to a Securities and Exchange Commission filing.

Petrobras — The Brazilian state-run oil company’s shares dove 8.9% in the premarket after Luiz Inácio Lula da Silva beat Jair Bolsonaro in the Brazilian presidential election.

XPO Logistics – Shares gained 2.5% after the logistics firm reported a quarterly profit of $1.45 per share and topped estimates by 10 cents a share. XPO’s revenue also topped analysts’ forecasts, helped by revenue improvement in XPO’s less-than-truckload business.

Read the full list of stocks moving here.

— Peter Schacknow, Samantha Subin

Euro zone inflation surges to record high, third quarter economic growth slows

Euro zone inflation soared by 10.7% from a year ago during the month of October as the 19-member bloc grapples with higher food and energy prices accentuated by Russia’s invasion of Ukraine.

This represents the highest monthly reading ever since the euro zone’s formation.

The data comes after countries individually reported flash estimates last week. In Italy, headline inflation came at 12.8% over the previous year while Germany said inflation jumped to 11.6%.

Some countries including Estonia, Latvia and Lithuania saw inflation rise by more than 20%.

Preliminary data released Monday also showed economic growth slow in the third quarter, with gross domestic product rising by just 0.2% in the third quarter. That’s down from an increase of 0.8% in the second quarter.

— Silvia Amaro, Samantha Subin

Wheat prices rise almost 6% after Russia pulls out of grain export deal

Global wheat prices have started to rise following Russia’s withdrawal from the Black Sea grain export deal last weekend.

The most-active wheat contract on the Chicago Board of Trade jumped 5.8% to $8.77-1/2 a bushel around midnight London time, according to Reuters, after earlier hitting a high of $8.93 a bushel. Corn and soybean prices also rose.

The increases come after Russia announced Saturday that it was suspending its involvement in the Black Sea Grain Initiative that was brokered in July and which allowed vital agricultural products to be exported from several Ukrainian ports.

Russia announced Saturday that it was withdrawing from the deal for an indefinite period after it accused Ukraine of a “massive” drone attack on the Black Sea Fleet in Sevastopol in Crimea.

Ukraine has not said whether it was responsible for the attack. President Volodymyr Zelenskyy said Russia’s withdrawal from the initiative was “rather predictable” and the global food crisis would worsen.

An aerial view of Sierra Leone-flagged dry cargo ship Razoni which departed from the port of Odesa Monday, arriving at the Black Sea entrance of the Bosporus Strait, in Istanbul, Turkey, on August 3, 2022.

Anadolu Agency | Anadolu Agency | Getty Images

Moscow’s move was “an absolutely transparent intention of Russia to return the threat of large-scale famine to Africa and Asia,” Zelenskyy said, adding that “access to food has actually worsened for more than 7 million consumers.”

The UN and Turkey, which helped Ukraine and Russia to reach the grain deal, have agreed a plan with Ukraine to help move 16 vessels (12 outbound and 4 inbound) that are stuck within the maritime corridor used to export grains.

The organization overseeing grain exports, the Joint Coordination Centre, said in a statement Sunday that “in order to continue fulfilling the Initiative, it was proposed that the Turkish and United Nations delegations provide tomorrow 10 inspection teams aiming to inspect 40 outbound vessels. This inspection plan has been accepted by the delegation of Ukraine. The Russian Federation delegation has been informed.”

— Holly Ellyatt

Goldman Sachs expects Fed rates to peak at 5%

Economists at Goldman Sachs expect the Federal Reserve funds rate to peak at 5%, after raising its forecast for the central bank to hike 75 basis points in this week’s upcoming meeting.

Economists led by Jan Hatzius said in a Saturday note that they are adding another 25 basis points to their forecasts — now calling for a 50 bps hike in December, a 25 bps hike in February, and another 25 bps hike in March.

“Inflation is likely to remain uncomfortably high for a while, which could make continuing to hike in small increments the path of least resistance,” the note said.

Jihye Lee

CNBC Pro: These 12 cheap global stocks are expected to rally — and analysts love them

Stocks around the world have sold off this year on recession fears and soaring inflation — and are now looking cheap.

Analysts say there could be buying opportunities in some stocks that they expect to rally.

To find those stocks, CNBC Pro screened for names under the MSCI World index that met a number of criteria.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Stock futures open flat

Futures were little changed when trading began at 6 p.m. ET on Sunday, with the Nasdaq 100 futures down just 0.1% and the S&P 500 and Dow futures closer to the flatline.

— Jesse Pound

Traders looking for sign of a slowdown from Fed

Wall Street will be watching the Federal Reserve statement closely this week for signs that the central bank will ease up on its rate hike pace.

According to the CME FedWatch tool, traders believe there is an 80% chance that the Fed hikes rates by three quarters of a point on Wednesday.

That would bring the central bank’s target range to 3.75% to 4%.

Beyond that, however, the market looks more uncertain. There is just a 44% probability of another hike of that size in December.

— Jesse Pound

Dow poised for best month since 1976

The major averages rose last week despite a rocky batch of earnings. All three are poised to break a two-month losing streak, and the Dow is set for its best month in more than 40 years.

Here’s where things stand:

The Dow:

  • Up 5.72% last week, its fourth-straight winning week
  • Up 14.40% for the month, its best month since January 1976, when it gained 14.41%

The S&P 500:

  • Up 3.95% last week, its second positive week in a raw
  • Up 8.8% for the month

The Nasdaq Composite:

  • Up 2.24% last week, its second positive week in a row
  • Up 4.98% for the month

— Jesse Pound, Christopher Hayes

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