48 Mins Ago
Rising margin loans are a warning sign for the market, Interactive Brokers’ Thomas Peterffy says
A recent uptick in margin loans is flashing warning signs for the market, according to Thomas Peterffy, the founder and chairman of Interactive Brokers.
Compared to the year-ago quarter, margin loans – a type of financing in which investors borrow against their existing assets – rose 30% to $51.2 billion — an all-time high, the investor said on CNBC’s “Closing Bell: Overtime” on Tuesday.
“Margin loans keep rising, and that’s never a bullish sign,” Peterffy said. “That usually foretells a market that is going to slow down, so that is what we’re probably going to be seeing.”
As an example, the investor pointed to the market collapse two years ago, when margin loans rose to another all-time high right before the sell-off.
However, Peterffy noted that he sees the market rising over the long term as inflation and interest rates stay high.
— Lisa Kailai Han
An Hour Ago
Stocks making the biggest moves after the bell: United Airlines, Autodesk and J.B. Hunt Transport Services
These are the stocks moving the most in after-hours trading:
- United Airlines — The aircraft carrier stock gained nearly 6% after beating analyst expectations for its first-quarter results on the back of strong travel demand. United Airline added that it expects to post earnings of between $3.75 and $4.25 per share for its second quarter, higher than the $3.76 analysts were expecting. Shares of American Airlines were also trading 1.5% higher.
- Autodesk — The software stock slid 2.4%. Autodesk announced that it will further delay its annual 10-K filing due to an ongoing internal investigation by the company’s audit committee of its board of directors.
- J.B. Hunt Transport Services — Shares fell more than 5% after the transportation and logistics posted weaker-than-expected earnings and revenue last quarter. Earnings came out to $1.22 per share, less than the $1.52 analysts had expected. J.B. Hunt’s $2.94 billion revenue also fell short of the $3.12 billion analysts had anticipated.
— Lisa Kailai Han
An Hour Ago
Stock futures open higher
Stock futures traded higher Tuesday night.
Futures tied to the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all traded close to 0.2% higher shortly after 6 p.m. ET.
— Lisa Kailai Han
