What you need to know on Wall Street today
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Hedge funds just suffered through their worst month in 8 years - here's why their struggles could just be getting startedThe stock market's so-called Red October was a tough time for investors of all shapes and sizes. But few parties felt the pain like hedge funds, which turned in a rocky month for the ages.Advertisement
A large universe tracked by Hedge Fund Research lost almost 3% in October, its worst month since May 2010, when the eurozone debt crisis was the major issue facing markets.
But it was the turmoil that raged under the surface of that massive hedge fund universe last month that should have investors worried. While the market's previous period of turbulence in February was largely driven by technical factors, a study from JPMorgan suggests Red October was far more based on fundamentals.Tech stocks are getting slammed, Dow drops nearly 500 points
Stocks fell for a third straight day Monday, with technology leading the way lower amid worries about waning iPhone demand.The Nasdaq Composite fell 2.3%, while the S&P 500 lost 1.4% and the Dow Jones Industrial Average was lower by 1.9%. The Dow was down almost 500 points.Apple sank 4.5% Monday after the facial-recognition supplier Lumentum cut its outlook, prompting worries of slowing demand for the iPhone.Advertisement
Athenahealth just struck a $5.7 billion deal to end an 18-month battle with activist investor Paul Singer$5.7 billion agreement with Veritas Capital and Elliott Management to be acquired.Advertisement
The deal, which values Athenahealth at $135 a share, follows months of pressure from Elliott to strike a deal and go private. Athenahealth provides technology used by doctors and hospitals.
Good news, Wall Streeters: You're probably going to get a bigger bonus this yearWall Street professionals in almost all sectors are likely to receive bigger bonuses for the second year in a row, according to compensation consultant Johnson Associates.Advertisement
The firm published its latest projections for Wall Street compensation on Monday. Incentive payouts are expected to be up across sectors this year, and Wall Street workers on average may see their year-end incentive payouts - including cash bonuses and equity awards - increase 5-10%, the report said.
Bonuses for investment banking underwriters and private equity professionals are projected to be 5-10% higher than last year, while equities traders could see an even bigger jump, as much as 20% from last year.In markets newsAdvertisement
- The world's biggest stock bear unloads on the 'stupidity' of Wall Street - and explains why the October meltdown was just a 'drop in the bucket' before the next big crash
- A $2 trillion strategist warns that a trap has formed in the biggest tech stocks - and pinpoints where you should put your money instead
- Man commits suicide at AIIMS, Delhi
- HC allows RWA to repair wall to keep out people from nearby COVID-19 hotspot colonies
- Twitter backs allyship in solidarity with #BlackLivesMatter
- World Environment Day: DIY natural dyes for a wardrobe makeover
- India spells out priorities for UNSC seat campaign; EAM says country can play positive role amid testing times