- Wall Street’s Monday crash spreads to Europe, with major indexes losing more than 3% at the open.
- Germany’s DAX, France’s CAC 40 and the broad Euro Stoxx 50 index all lost more than 3% of their value before paring their losses to around 2% by mid-morning.
- Concerns about inflation rising more sharply than previously expected are fuelling fears that the Federal Reserve may be forced to tighten monetary policy faster than had been forecast.
Selling in the stock market intensified on Wall Street late Monday as the Dow briefly cratered more than 1,500 points, wiping out its gains for the years and knocking it below the 25,000 level, extending last week’s steep selloff in dramatic fashion.
In a wild trading session Monday the size of the Dow drop reached nearly 1,600 points in afternoon trading after earlier recouping nearly all of its early-session loss of 355 points.
Following Friday’s 666-point plunge, the downdraft in stocks resumed Monday with the Dow Jones industrial average briefly going into freefall right after the opening bell. But an hour into the session, the Dow rallied back within 1 point of its break-even point for the day. The trend has been violently lower ever since.
(Reuters) – Shares in Netflix Inc (NFLX.O) rose 9 percent to a record high in premarket trading on Tuesday after the video streaming service trounced Wall Street targets for new subscribers in the fourth quarter.
At least eight brokerages raised their price targets for the company’s shares by as much as $50. Analysts at RBC Capital Markets and KeyBanc were most bullish, setting targets of $300 compared to the $248 it traded at on Tuesday.
In a statement after markets closed on Monday, Netflix said it added 6.36 million subscribers in international markets in the fourth quarter, beating analysts’ expectations of 5.1 million, according to FactSet.
It now has 117.58 million streaming subscribers globally.
- President Donald Trump’s son-in-law Jared Kushner has reportedly landed in Mueller’s crosshairs.
- Mueller’s team has begun to question witnesses about some of Kushner’s conversations and meetings with foreign leaders during the transition.
- Investigators are also homing in on Kushner’s role in pushing Trump to fire former FBI Director James Comey in May.
America’s biggest investment managers aren’t thrilled with the GOP tax bill.
Under a little-publicized provision of the bill, clients would be forced to sell their oldest shares first when cashing out of positions, according to a report from Laura Saunders of the Wall Street Journal. That would reduce flexibility in terms of minimizing taxes, something that investment firms fear could end up costing clients loads of money.
President Donald Trump said Monday he was contemplating breaking up the big Wall Street banks.
“I’m looking into that right now,” he told Bloomberg about bringing back the “old system” that separated consumer lending and investment banking.
He seems like an American success story: an ambitious Russian who came to the U.S. and went from business school to Wall Street to his own hedge fund.
But somewhere along the way, U.S. authorities say, Vitaly Korchevsky began orchestrating a new type of financial crime.
Korchevsky, 50, was one of several men arrested Tuesday morning in the biggest case of insider trading linked to the fast-growing threat of global cybercrime. Charges against him were unsealed Tuesday in Brooklyn, New York federal court.
The alleged scheme stretched from the affluent suburbs of Philadelphia, where Korchevsky ran a small investment fund, to the darkest realms of the Internet.
Working from Russia or Ukraine, hackers infiltrated several computer systems used by corporations to report sensitive information like earnings and then, allegedly with Korchevsky’s help, made millions of dollars trading on the confidential data, people familiar with the matter say.
Little that is known about Korchevsky seems to hint at his alleged role in bringing together these two illicit worlds. Less than prominent in financial circles, he has spent a decade and a half moving from one mid-level job to the next.
After completing university in Russia, Korchevsky collected an MBA in 1995 from Regent University, a private Christian institution founded by the televangelist Pat Robertson. He also passed the Chartered Financial Analyst exam, considered the gold standard among financial professionals.
By 1999 he was working in the asset management division of Morgan Stanley, where he helped manage several Invesco American Value funds, according to Morningstar.
From there he joined Victus Capital in New York and then Investment Counselors of Maryland in Baltimore. He left in 2009, two years before registering his own hedge fund, NTS Capital Fund, in Glen Mills, Pennsylvania.
Other than traffic violations, Korchevsky’s U.S. legal record appears clean, as is his official Wall Street record filed with the Financial Industry Regulatory Authority.
In an era of high-profile Wall Street scandals, the scheme laid out by prosecutors is relatively small in dollar terms. U.S. prosecutors said the nine men netted $30 million.
However, a broader, parallel lawsuit filed Tuesday by the Securities and Exchange Commission listed 17 men, including the nine charged, and 15 companies as defendants in a scheme that allegedly earned more than $100 million.
The regulator said Korchevsky made about $17.5 million in illicit profits. By comparison, the insider trading scheme hatched by Galleon Group LLC co-founder Raj Rajaratnam netted about $72 million, while the $275 million insider trading case of SAC Capital Advisors LP portfolio manager Mathew Martoma was called the biggest ever against a single person.
Ukraine’s Hackers: What Do We Know?
- An international police operation into the “Shylock” banking malware, which infected more than 100,000 computers, led to properties in Ukraine being searched and computers seized in 2014.
- In June, Ukrainian police arrested five people suspected of links to ZeuS and Spyeye, two viruses that target online bank accounts around the world.
- The country’s Department on Combating Cybercrime, part of the Ministry of Internal Affairs, deals with online offenders.
Nonetheless, the confluence of computer hacking and insider trading raises the stakes for investors and federal authorities.
Thought to be in Ukraine and possibly Russia, the hackers infiltrated the computer servers of PRNewswire Association LLC, Marketwired and Business Wire, a unit of Warren Buffett’s Berkshire Hathaway Inc., according to a person familiar with the matter. They stole more than 150,000 press releases over the duration of the scheme.
They then allegedly fed the information to Korchevsky and others in the U.S. who used it to buy and sell shares of dozens of big companies, including Panera Bread Co., Boeing Co., Oracle Corp., Hewlett-Packard Co. and Caterpillar Inc., ahead of the news.
The defendants traded in personal brokerage accounts and then siphoned the money offshore through Estonian banks, the person said.
Korchevsky was taken into custody at his home in Glen Mills, where he operated NTS Capital. NTS has made no filings since its initial one four years ago, and it’s unclear if the fund is still in operation. Korchevsky is now facing securities fraud and conspiracy charges by federal prosecutors in Brooklyn.
He is scheduled to make his first court appearance Tuesday afternoon in Philadelphia federal court.