Opinion: 2018 will be a big year for Twitter (and its stock) I have been a persistent bear on social-media company Twitter Inc. since it entered the public market.
In 2014, after Twitter TWTR, +2.63% rolled back from the immediate IPO euphoria, I warned the stock had a lot farther to fall. Then in 2015, when the stock had dropped to $40, down about 40% from its all-time high, I cautioned that Twitter was still far from a bargain.
But after falling through 2016 and the beginning of 2017, the little blue bird has finally figured out how to fly. Shares have jumped 50% from their spring lows, and after a rosy third-quarter earnings report at the end of October, shares are now at their highest levels in over a year.
Of course, those gains have come amid a good backdrop for stocks. The S&P 500 Index SPX, +0.65% is having a great year, up 16% since Jan. 1 and setting new highs like clockwork, and investors are looking decidedly “risk on” as we enter a seasonally strong time of the year.
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Is MoviePass’s new $6.95-a-month unlimited movie ticket deal really as epic as it seems? There has to be some sort of a catch, right? MoviePass is announced a change to its a one-year subscription plan, making it less than $7 a month to see unlimited movies in select theaters.
Now, for $89.95 a year, filmgoers can see a movie a day (excluding Imax and 3D screens) for $6.95 a month and MoviePass will pay theaters the full price of the ticket.
The $6.95 price point is guaranteed for at least 12 months, though space is limited, according to a blog post on MoviePass. On the surface, it looks worth it. The average movie-ticket price in the U.S. was $8.65 in 2016, according to data from Statista, making a monthly MoviePass just slightly more than the cost of one traditional ticket.
And in some cities, the price of a monthly MoviePass is even less than the cost of a ticket. A standard adult ticket at the AMC theater in Emeryville, a suburb of San Francisco, is nearly twice that at $14.19…Read More →

Zimbabwe’s Mugabe resigns, parliament speaker says HARARE, Zimbabwe—President Robert Mugabe has resigned, the speaker of Zimbabwe’s parliament said Tuesday, one week after tanks rolled into the capital and took control of the government.
Speaker Jacob Mudenda said he received a letter from Mugabe saying he would step down. The announcement was made as lawmakers were debating a motion to impeach the world’s oldest head of state, who has ruled Zimbabwe for 37 years.
It brings to an end a week of twists and turns for the resource-rich Southern African country and Mr. Mugabe, 93 years old, whose grip on power had become increasingly untenable.
Cheering crowds stormed the streets of the capital Harare, where hundreds of thousands marched on Saturday in their first free demonstrations in decades.
Mugabe, a former schoolteacher who toppled white-minority rule to become Zimbabwe’s first black leader, has been under house arrest since Tuesday night, when the military deployed tanks and sold..Read More →

Eurozone bond bears ignore shrinking supply at their peril, says economist Many investors are betting on European bond prices to fall, and yields to climb, as the eurozone recovery broadens beyond export powerhouse Germany to nations like Portugal and Spain.
But Carl Weinberg, chief economist at High Frequency Economics, says stronger growth could, in fact, keep yields under wrap by slashing fiscal deficits, and starving the market of supply. Yields and bond prices move in opposite directions.
Many investors note the ultralow or negative bond yields on offer in Europe remain well below inflation, which corrodes the value of bond’s fixed-interest payments. With consumer prices expected to rise, they argue that demand for European sovereign bonds will ebb away.
The European Central Bank expects core inflation to rise to 1.3% in 2018, from 1.1% in 2017.
But it’s not clear if demand for eurozone bonds would weaken. In a note, Weinberg pointed out that there are plenty of investors who..Read More →

What the ‘Weinstein effect’ is doing to office holiday parties The era of the booze-fueled office holiday bash appears to be coming to a close — and the watershed Weinstein moment could be to blame.
Firms are scaling back their year-end parties — shrinking budgets, axing alcohol, or even cutting the soirée altogether — as newfound awareness of sexual harassment brings dark ages behavior into the light, according to the annual office holiday party survey by the Chicago-based outplacement firm Challenger, Gray & Christmas, Inc.
Some 11% of employers won’t hold a holiday party this year, up from 4% in 2016. Challenger, Gray & Christmas surveyed 150 human resources professionals in October and November. The firm has been doing the survey since 2007 as a way to track workplace trends.
Also see: 10 things you should never say to a colleague
‘There’s no economic reason right now that we see these holiday parties being scaled back, and that’s why we think it could be an anomaly caused by ..Read More →

Stock-market indexes back in record territory after strong earnings MARKETWATCH FRONT PAGE U.S. stock futures on Tuesday point to rise at the open, with Lowe’s and Dollar Tree among those reporting earnings and with Fed chief Janet Yellen ready to give her first speech after her departure announcement. See full story.
Retailers are using your mobile phone to entice you to shop this holiday season Mobile devices are expected to be a key shopping tool this holiday season, as retailers and shoppers move beyond using them solely for browsing and price comparisons. See full story.
Malls are dying. There aren’t enough homes. Is there a solution? Across America, malls are being repurposed for residences as an oversupply of one meets a lack of the other. See full story.
If Hannity and Sessions want to investigate the Clinton Foundation, this is what they’ll find Sean Hannity, getting the money out of the Clinton Foundation sounds like one of the greatest financial mysteries of our time, wri..Read More →

Tesla shares will go on a wild ride in 2018, Morgan Stanley says Tesla Inc. shares will be “extremely volatile” next year, reaching highs that could top $400 before facing headwinds that could take them below current levels, analysts at Morgan Stanley said in a note Tuesday.
The analysts also slashed their expectations for Model 3 production in the fourth quarter, saying they expect Tesla TSLA, +2.54% would deliver “only” 1,000 of the mass-market sedans, down from a previous expectations of 10,000 deliveries. They kept their 2018 forecast of 120,000 Model 3 deliveries unchanged.
Read more: Tesla’s biggest news last week was not the truck, says this fund manager
Tesla Chief Executive Elon Musk had predicted that Tesla would be able to make 5,000 Model 3 sedans a week by the end of the year, but after third-quarter results earlier this month warned that the company would likely reach that milestone late in the first quarter.
See also: Morgan Stanley keeps Goodyear its top pick in ..Read More →

Opinion: Feel better about what your money is doing for the world — without hurting your investment returns Have you ever felt the ick factor?
That’s that icky feeling when you believe in certain values (social justice, environmental progress, etc.), but know that your money is supporting all the things you hate (sweatshops, private prisons, fossil fuels, etc.). Synonym: steel plate in the head phenomena (keeping your social values on the left, investments on the right).
I’ve spent the last 17 years influencing over $150 billion from asset owners interested in the prospect of impact investing to align their values and money. And I’m just one of so many people who are making the move into this relatively new, exciting field.
You can feel better about what your money is doing in the world (even as it makes you more money).
What is impact investing? You may have heard of Socially Responsible Investing (SRI), or Environmental, Social and Governance (ESG) factors being used as a negat..Read More →

Opinion: Janet Yellen’s true legacy is her focus on middle-class wages When Janet Yellen took over the leadership of the Federal Reserve in 2014, it took almost no time to know how she was different than most of her predecessors: At the news conference after the first Fed meeting she chaired, she made a point of saying that the central bank’s job of helping the economy heal from the brutal 2007-09 recession wasn’t done until wages for regular workers began to rise in earnest.
“We have lived through a devastating financial crisis that has taken an exceptional toll,” Yellen said at her March 2014 press conference. “I’d be surprised if anyone in this room doesn’t know someone who has been touched by the crisis, by unemployment, by difficulties in getting jobs, and that is true of me and my family and friends, I think, as it is probably for many of you.”
We hear a lot about populism these days, a political philosophy the dictionary says is about a party or faction “seeking to represent t..Read More →

Why studying humanities is a luxury only wealthy college students can now afford The popular image of college often invokes students debating philosophy on the quad. But more evidence suggests that for many students today, college is less about expanding the mind and more about getting a job.
And that’s out of necessity: 25% of students who major in arts or humanities at all schools except the most selective ones default on their loans by the time they’re 33 years old. That’s compared to slightly less than 15% of their peers who majored in higher paying fields, like STEM. This is all according to data released this week by the Federal Reserve Bank of New York.
The research adds to the growing body of evidence that college is a very different experience depending on who you are and where you go to school. Selective colleges, are typically made up of relatively wealthy, well-prepared and well-connected students. At those schools, slightly less than 15% of arts and humanities majors def..Read More →