Best stocks to own if you're betting on Romney

If he moves into the White House, Mitt Romney has vowed to overturn President Obama's health care reform laws. While that would introduce a new wave of uncertainty about the future of health care, it would be a sure-fire win for at least one area: medical device companies.

Under Obama's Affordable Care Act, medical device companies, such as Medtronic (MDT, Fortune 500), St. Jude Medical (STJ, Fortune 500) and Stryker (SYK, Fortune 500), would be required to pay a 2.3% excise tax on their U.S. sales, starting Jan. 1.

A Romney win would eliminate that tax, which Wunderlich Securities analyst Greg Simpson said "penalizes companies that are driving most of the innovation in the industry."

Medtronic CEO Bill Hawkins told CNBC earlier this year that the tax could cost his company between $150 million and $200 million annually, and would impact the amount the company could spend on research and development projects, while Stryker interim CEO Curt Hartman predicted the tax would cost his company $130 million a year.

And many analysts say that St. Jude's recent restructuring plan, which includes 300 job cuts and aims to save between $50 million and $60 million, would be used to fund the new tax liability.

NEXT: Defense

20 Sep, 2012

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U.S. stocks under pressure at the open

NEW YORK (CNNMoney) -- U.S. stocks edged lower Thursday, as disappointing reports in Asia and Europe showed further signs of a persistent global slowdown.

Dow Jones industrial average, S&P 500 and Nasdaq were all in the red as markets opened.

Investors were reacting to an HSBC report on Chinese manufacturing, which showed that manufacturing in the world's second-largest economy continued to contract in September. That pushed Asian markets down between 1% and 2%.

European markets were also hit with news pointing to a lagging economy, with Markit's regional purchasing managers index falling to a 39-month low. That marks the fastest contraction of new business and services in more than three years. European stocks all dropped in afternoon trading.

Related: Fear & Greed Index

On the domestic front, first-time unemployment benefit claims in the U.S. fell for the week ended Sept. 15, down 3,000 from the previous week to 382,000. Although the Labor Department figure is down 3,000 from the previous week, it's still not low enough to ease worries about continued high unemployment.

Investors will also be looking to the Federal Reserve Bank of Philadelphia's regional business outlook survey released at 10 a.m. to see if there is further sign of a slowdown following disappointing manufacturing data from the New York Fed out earlier this week.

U.S. stocks ended little-changed Wednesday, as investors wait to see if stimulus measures from central banks across the globe will jumpstart the global economy.

Related: Factory data sends China stocks to nearly 4-year low

Companies: ConAgra Foods (CAG, Fortune 500) shares shot up more than 5% after the food processing company beat expectations by reporting earnings of 44 cents per share.

Shares of the nation's largest car retailer, CarMax (KMX, Fortune 500), were lower after the company reported earnings that fell below estimates.

Rite Aid (RAD, Fortune 500) shares were also higher after the drugstore chain's reported loss of 5 cents per share came in smaller than anticipated.

Shares of investment bank Jefferies (JEF) were down more than 7% despite reporting higher-than-expected earnings before Thursday's open.

Shares of railroad operator Norfolk Southern (NSC, Fortune 500) were down after the company lowered its third-quarter guidance Wednesday. Fellow rail transport firms CSX (CSX, Fortune 500), Union Pacific (UNP, Fortune 500)and Kansas City Southern (KSU) also fell on the news.

Shares of Bed Bath & Beyond (BBBY, Fortune 500) were lower after the retailer missed earnings estimates.

Online real estate site Trulia announced late Wednesday that it had priced its initial public offering at $17 a share. The company will begin trading on the New York Stock Exchange Thursday under the symbol "TRLA."

Currencies and commodities: The dollar rose against the euro and British pound, but it fell versus the Japanese yen.

Oil for October delivery fell 33 cents to $91.65 a barrel.

Gold futures for December delivery fell $5.30 to $1,766.40 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 1.74% from 1.78% late Wednesday.

First Published: September 20, 2012: 9:44 AM ET

20 Sep, 2012

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China stocks hit fresh low

Investors were spooked by a report from HSBC that contained more bad news for China.

HONG KONG (CNNMoney) -- World markets dropped Thursday as weak economic data from China unnerved investors and sent the Shanghai Composite Index to its lowest level in almost four years.

Broad declines hit markets in Asia, with the Hang Seng in Hong Kong skidding 1.2%, the Nikkei in Tokyo falling 1.6% and the Shanghai Composite dropping 2.1%.

The decline left the Shanghai index at 2,024.8, its lowest level since February, 2009. The Nikkei and Hang Seng remain in positive territory for the year.

European markets were also lower. In early trading, the CAC 40 in France and London's FTSE were down 0.7%, while the DAX in Frankfurt tumbled 0.3%.

Investors were spooked by a report from HSBC that contained more dour news for China. HSBC's initial purchasing manager's index for Chinese manufacturing ticked up slightly to 47.8 in September from 47.6, the bank said Thursday. Any reading below 50 indicates that factory growth is shrinking rather than picking up speed.

Economists at Capital Economics said the data indicated a stabilization in China's economy, but not a recovery.

"Today's survey provides reassurance that conditions in manufacturing are not deteriorating," the economists wrote in a research note. "But we are now approaching the one-year anniversary of this index dropping below 50 and a recovery is still not in sight."

Manufacturing in China is considered a barometer of the global economy because of the country's role as a powerhouse exporter.

China, the world's second-largest economy behind the United States, has been hit particularly hard by the recession in much of Europe, where weak conditions have zapped demand. Many economists have downgraded their growth expectations for China in recent weeks.

Policymakers in Beijing, meanwhile, have taken steps to stimulate the economy, including a new round of infrastructure spending, with $157 billion approved for 55 projects.

First Published: September 20, 2012: 5:23 AM ET

20 Sep, 2012

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Japanese firms reopen in China

By Kevin Voigt, CNN

September 20, 2012 -- Updated 0600 GMT (1400 HKT)

Chinese demonstrators carry anti-Japan banners and shout slogans on September 16.

STORY HIGHLIGHTS

• Dozens of Japanese factories and stores reopened in China after violent protests
• Exports to China, Tokyo's largest trading partner, dropped nearly 10% year-on-year in August
• Japanese automakers Nissan, Mitsubishi, Mazda and Suzuki, have reopened in China
• Panasonic has yet to reopen in Qingdao where part of its facility was set ablaze by protesters

Hong Kong (CNN) -- Dozens of Japanese factories and stores reopened Thursday in China after violent protests forced their closure amid fury over Japan's plans to buy disputed islands in the East China Sea.

Chinese plants for electronics makers Canon and Sony, along with Japanese automakers Nissan, Mitsubishi, Mazda and Suzuki, have reopened in China, company officials told CNN. Nearly 200 7-11 stores in Beijing and Chengdu operated by Seven & I Holdings and convenience stores operated by Lawson Inc. also reopened. Toyota Motor Company wouldn't reveal whether its China operations had reopened, telling CNN that the decision is up to individual plants.

Honda has yet to reopen two plants in Guangzhou province, while Panasonic has yet to reopen operations in Zhuhai, site of an employee strike, and in Qingdao, where part of its facility was set ablaze last weekend by protesters.

Meanwhile, trade data released Thursday shows that Japanese exports dropped 5.8% year-on-year in August, with trade to China dropping nearly 10%. Analysts attributed the fall to a general global slowdown in demand for Japanese goods.

The decline underlines the economic significance of China, Japan's largest trading partner, and highlights the risk a prolonged dispute poses for Tokyo. The figures were compiled before the widespread calls in China for a boycott of Japanese goods.

Earlier this week, ratings agency Fitch warned that the credit ratings of Japanese auto and technology manufacturers could come under pressure "if the clash between China and Japan over the Senkaku/Diaoyu islands escalates and is prolonged."

The dispute with China comes as Japan Inc. has been battling to recover from the twin disasters last year of the Tohoku earthquake and tsunami, as well as floods in Thailand which hurt Japanese electronics and automobile manufacturers that operate in the area. Export-driven companies are also struggling against a stubbornly high yen, which hurts the competitiveness of Japanese companies abroad.

Tensions in the dispute, a perennial source of nationalistic anger on both sides of the East China Sea, rose on September 10 after Japanese government agreed to buy the uninhabited islands from its private Japanese owners. China claims historical ownership of the island chain, while Tokyo maintains it has been in Japanese hands since 1895. The islands — known as the Senkakus in Japan and Diaoyu in China -- were administered by the U.S. occupation force after World War II. But in 1972, Washington returned them to Japan as part of its withdrawal from Okinawa.

The islands sit among popular fishing waters and are also believed to be rich in oil resources. Ownership of the chain would allow exclusive commercial rights in the seas surrounding the islands.

CNN's Junko Ogura contributed to this report

20 Sep, 2012

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CHINA: MORE SLOW GROWTH

A worker at an automobile plant in Beijing, China.

HONG KONG (CNNMoney) -- Manufacturing growth in China continued to slide in September, according to a key initial reading released Thursday.

HSBC's initial purchasing manager's index for Chinese manufacturing ticked up slightly to 47.8 in September from 47.6, the bank said Thursday. Any reading below 50 indicates that factory growth is shrinking rather than picking up speed.

"China's manufacturing growth is still slowing, but the pace of slowdown is stabilizing," Hongbin Qu, an economist at HSBC, said in a statement. "This is adding more pressures to the labor market and has prompted Beijing to step up easing over the past weeks."

Manufacturing in China is considered a barometer of the global economy because of the country's role as a powerhouse exporter.

China, the world's second-largest economy behind the United States, has been hit particularly hard by the recession in much of Europe. The European sovereign debt crisis has prompted steep austerity measures in many countries. Weak conditions have zapped demand in the eurozone, the largest market for Chinese exports.

In addition, the U.S. economy has slowed, further cutting demand for Chinese exports. The slowdown in China also worries investors because China has become a major market for U.S. companies.

Related: World's largest economies

Many economists have downgraded their growth expectations for China in recent weeks.

Swiss banking giant UBS has lowered its forecast for how much China's economy will grow this year to 7.5% from 8%. And Goldman Sachs has issued a slightly less dour outlook for China growth -- dropping it to 7.6% from 8.0%.

Chinese officials have moved in recent months to spur growth. The country's central bank cut rates in June and July -- the first such actions since 2008.

And policymakers have confirmed a new round of infrastructure spending, with $157 billion approved for 55 projects. The projects include 25 new subway lines, as well as highway and waterway investments.

The investment comes at a crucial time, as China is scheduled to undergo a leadership change in coming weeks that will reshape the top ranks of China's government and the ruling Communist Party.

First Published: September 19, 2012: 11:58 PM ET

20 Sep, 2012

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Asia's millionaires top North America's

The number of ultra-wealthy people in the Asia-Pacific region is now larger than in North America.

NEW YORK (CNNMoney) -- For the first time ever, there are now more millionaires in Asia than in North America, driven by growth in China and Japan.

There were 3.37 million high-net-worth individuals in the Asia-Pacific region in 2011, according to a report out Wednesday from Capgemini and RBC Wealth Management. That's an increase of 1.6% from 2010. By comparison, there are 3.35 million high-net-worth individuals in North America.

The population of high-net-worth Asians - defined as having at least $1 million in investable income - also exceeded the number of ultra-wealthy Europeans for a second straight year.

But even as the number of Asian millionaires has increased, the total level of investable wealth in the region actually declined by 1.1%, to $10.7 trillion in 2011. This was due to several factors, including inflation, slowing economic growth and reduced demand for Asian goods and services from the stagnant European economy.

Related: Americans see China as economic threat

North America still holds the world's largest collective pile of investable wealth: $11.4 trillion, which is actually down 2.3% from 2010.

Some 54.1% of high-net-worth individuals in the Asia-Pacific region are in Japan, which is still recovering from last year's catastrophic earthquake-tsunami-nuclear meltdown. The report described the wealthy Japanese as conservative investors, "holding high levels of cash, fixed income and real estate."

The Japanese are trailed by the Chinese, and then the Australians, who boast the second and third largest populations of high net worth individuals in the Asia-Pacific region. Thailand and Indonesia also saw rapid gains in their wealthy populations.

Related: U.S. companies betting big in China

Singapore and Hong Kong are reaping their own benefits from the region's increase in wealth. Thanks to their favorable tax rates, they are becoming what the report calls "offshore wealth centers," where Asian millionaires are funneling their funds.

Having said that, Switzerland still holds its traditional post as offshore capital of the world, according to the report. It currently holds a quarter of the globe's assets under management, even though the country has come under closer scrutiny from international regulators in recent years.

First Published: September 19, 2012: 12:18 PM ET

20 Sep, 2012

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F1's financial future in Asia

[unable to retrieve full-text content]CNN's Ben Wyatt investigates whether Singapore is the financial future of F1.

20 Sep, 2012

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Tourism on pace to set a record in 2012

Tourism is on pace to set a record in 2012, despite the sluggish economy.

WASHINGTON (CNNMoney) -- The economic recovery remains sluggish, but that isn't stopping tourists from visiting the United States.

Tourism is on pace to set a record in 2012, as tourism and related sales increased by 2.1% in the second quarter, after a 4.9% increase in the first quarter, according to a Wednesday report from the U.S. Department of Commerce.

Travel and tourism-related activities also increased, on average, more than $1.1 billion a month during the first seven months of 2012, the agency reported separately.

"The travel data released today shows that tourism remains one of the bright spots in our economy, and the travel and tourism industry is on pace to reach record export levels this year," said acting U.S. Commerce Secretary Rebecca Blank.

Tourism has been strong for the past several years, especially when compared to other economic benchmarks.

The Obama administration trumpeted the news, crediting the president's directive to speed up the visa process. The State Department reported that 85% of visa applicants were now being interviewed within three weeks of submitting their applications, compared to 57% in July 2011.

Related: 5 best travel deals

But analysts credit a long-term drop in the dollar's value as the main lure for foreign travelers.

"When the dollar's competitive, it makes the spending power of visitors from other countries coming to the United States stretch further," said David Huether, senior vice president of economics and research at the U.S. Travel Association, a trade group.

The travel industry's growth is responsible for 12% of the economy's overall export gains so far in 2012, as opposed to 6% in 2011, Huether said. When foreign tourists buy goods in the United States and bring them back home, it's considered an export.

New York Mayor Michael Bloomberg told a group of Washington economists that tourism is at record highs in New York, due in part to his efforts to expand tourism offices in 18 countries. In 2011, 10.6 million tourists visited New York City from foreign countries, up from 6.8 million in 2000. Bloomberg said that the tourism increase had created thousands of jobs for the city.

First Published: September 19, 2012: 1:27 PM ET

20 Sep, 2012

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Fund managers: U.S. stock rally is over

The world's top mutual fund managers say the U.S. stock rally is about to come to an end.

More than half, or 58%, of 253 fund managers surveyed by Bank of America Merrill Lynch say stocks are the most overvalued investments in the world. That's up from 51% in an August survey.

Many investors and market watchers have been confounded by the U.S. stock market rally of 2012 amid what appears to be slowing global growth. All three major U.S. stock indexes have inked double digit gains in 2012 with the Nasdaq (COMP) jumping 22%.

Yet fund managers aren't all that worried about a slowdown. A net 17% of fund managers expect the global economy to strengthen over the next year, up from 15% in August.

What keeps fund managers up at night is potential inaction by Congress on the issue of the so-called fiscal cliff.

"Investors now view the U.S. fiscal cliff as a greater threat than the eurozone -- and the upcoming election is putting these fears into sharper focus," said Michael Hartnett, chief investment strategist at BofA Merrill Lynch Global Research, in a statement.

Related: Why the founder of the word's largest hedge fund isn't worried

As fund managers become less worried about the European sovereign debt crisis, they're allocating more money to European equities, raising the amount invested in European stocks to the highest level since February 2001, according to the survey.

In fact, fund managers have increased their position in European equities by double digits for three consecutive months. That marks the first time they've moved that aggressively into European stocks since the summer of 2009.

European markets have also seen broad gains this year. Germany's DAX (DAX) is up 25% and France's CAC 40 (CAC40) is up 11%.  "Any extension of the rally [in European stocks] is likely to be led by sector rotation and buying of unloved, domestically exposed stocks," said John Bilton, Bank of America's European Investment Strategist.

Oil and gas and technology are the most loved European sectors, or where fund managers put the largest percentage of capital. The most hated: financials and real estate.

 

20 Sep, 2012

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U.S. housing recovery blossoms

NEW YORK (CNNMoney) -- The U.S. housing industry -- crucial to any jobs recovery -- showed more signs of strength, according to two reports issued Wednesday.

The Census Bureau said housing starts and permits rose substantially in August. Separately, sales of previously occupied homes climbed 7.8% from a year ago, according to the National Association of Realtors.

Builders started on new homes at an annual rate of 750,000, up 29.1% compared with a year earlier. They applied to build another 803,000 new homes on an annual basis, a 24.5% jump compared with August 2011.

Home builders have become increasingly bullish -- a confidence index from the National Association of Home Builders reached its highest level since June 2006.

Even after recent gains, housing starts lag well behind the peak set in May 2005, when the pace of building hit more than 2 million homes.

Related: Best Places to Live

If sales continue to gain steam, that could help the nation break out of its economic doldrums. Home building provides many good-paying jobs, about three hires for every home built in a year, according to the National Association of Home Builders.

A rebound would create other jobs too: factory jobs at carpet and furniture makers, for example. Truckers get work transporting all those goods.

Related: Buy or rent? 10 major cities

Most housing markets around the nation have reached a good balance between sellers and buyers, according to the Realtors' chief economist, Lawrence Yun. There's a 6.1 month supply of homes on the market at the current pace of sales. That's down from 6.4 months in July and 8.2 months a year earlier. The lower supply provides some support for prices.

The housing market has shown several signs of life over the last few months with sales of existing homes, new home sales and home prices all turning positive.

Historically low mortgage rates have helped propel the market forward. This week, rates appear to be headed for new lows, following last week's announcement from the Federal Reserve that it would begin to purchase tens of billions in mortgage securities each month.

The Fed's move "provided the financial support to the mortgage market and signaled an intention to keep rates low for the foreseeable future," said John Tashjian, who runs a real estate investment fund, Centurian Real Estate Partners.

According to Tashjian, the real benefit of the Fed's action could be to increase lending volume. The banks, knowing that any well underwritten mortgage will find a ready market, should be more willing to approve mortgages.

Related: Best home deals in the Best Places

Prices are on the upswing as well. They have benefited from a change in the mix of homes sold with distressed properties -- repossessed homes and short sales -- accounting for only 22% of total sales, down from 31% last August.

The median home price grew 9.5% year-over-year to $187,400. That marked the sixth consecutive month of price increases, the first time that has happened since May 2006, near the very peak of the housing price boom.

First Published: September 19, 2012: 8:45 AM ET

20 Sep, 2012

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