CNBC Markets Now: June 17, 2025
CNBC Markets Now provides a look at the day's market moves with commentary and analysis from Michael Santoli, CNBC Senior Markets Commentator.
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UPI
an hour ago
- UPI
Investors flock to Chinese herbal medicine stock with no revenues
Regencell Bioscience Holdings' NASDAQ stock price rallied with a 280% increase on Monday and another 25% on Tuesday after a recent 38-for-1 stock split took effect on Thursday. File Photo by Angelina Katsanis/UPI | License Photo June 17 (UPI) -- Shares in Hong Kong-based Regencell Bioscience Holdings nearly quadrupled in value amid a 38-to-1 stock split despite the firm reporting no revenues. The stock split triggered a 280% share price increase on Monday, CNBC reported, and continued a 58,000% increase in its price in 2025, with a closing cost of $78 per share on the NASDAQ trading platform on Tuesday. The stock reached a high of $81.23 during morning trading and slumped slightly to $75.47 during Tuesday's after-hours trading. The stock is rated as a "buy" on the TipRanks website after Regencell officials on June 2 announced the stock split to improve its liquidity and value for shareholders. The stock split gave investors 37 shares for each share held on June 12. The shares began trading on a split-adjusted basis on Monday, according to Seeking Alpha. The firm has no reported revenue but says it is developing a Chinese herbal treatment for childhood attention deficit hyperactivity disorder and autism. The firm was established in 2014 and has been traded on NASDAQ under the RGC symbol since 202. It had a market capitalization of $29.7 billion at the end of trading on Monday. The market capitalization rose another 25% on Tuesday, with a total value of $36 billion. The stock traded for pennies per share last year but now has a greater market value than highly recognized businesses, including Kraft Heinz, Lululemon and eBay, according to CNBC. Part of the increased investor interest is due to Health and Human Services Secretary Robert Kennedy Jr. raising awareness of alternative medicines. Regencell Chief Executive Officer Yat-Gai Au controls more than 86% of the company's outstanding shares, according to FactSet. Little information is available about the potential effectiveness of the company's claims regarding its three traditional Chinese medicine formulas that are supposed to treat mild to severe forms of ADHD and autism with natural herbal medications in liquid form. Company officials in October reported no generated revenue and no regulatory approvals for its three liquid medicines. They reported net losses of $6.06 million in 2023 and $4.36 million in 2024. A Regencell patient case study in late 2023 said 28 patients were treated over three months during a second trial, which showed improvements in ADHD and autism. A dozen patients participated in a 2021 study to treat COVID-19, which indicated improvement in their symptoms.
CNBC
2 hours ago
- CNBC
Jim Cramer's guide to investing: The Fed isn't the only thing shaping the economy
CNBC's Jim Cramer said it sometimes seems like the Federal Reserve is "all-powerful." However, while the central bank can make conditions better or worse, it can't control everything, he continued. At the end of the day, he said, "we still have a market economy, and markets are inherently boom and bust creatures." "The action in the stock market doesn't always sync up perfectly with the real world, but various sectors come in and out of fashion based on the real-world health of the economy," he said. "You need to know how to take the economy's temperature, and looking at the unemployment rate or listening to pundits —even me — doesn't really cut it." When the economy seems to be doing well and employment data is positive, Cramer said investors should keep an eye on certain groups of stocks that can signal a slowdown. Some sectors are more economically sensitive than others, he said, or they are more likely to see losses early on in a downturn. If stocks related to housing and automobiles start to perform poorly, it might be a sign that the economy is about to peak — or at least investors are betting on a peak — Cramer said. Economic growth can cause long-term rates to rise, he continued, which makes it more expensive for consumers to take out housing or car loans. Commodity companies, such as those that make paper or chemicals, may also get hit at the start of an economic downturn, Cramer said. Paper companies can be a good barometer of global commerce, he continued, as less paper means less packaging. Plastic is ubiquitous, Cramer added, so it's "a real good tell." According to him, copper is also economically sensitive and connected to the global economy. "So, watch the homebuilders, watch the automakers, watch the paper stocks, and particularly, watch the price of copper," he said. "That way, you won't feel clueless the next time something goes wrong, and you'll have a much better idea of what to do with your stocks." Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest
CNBC
2 hours ago
- CNBC
Jim Cramer's guide to investing: Why the Fed matters
CNBC's Jim Cramer told investors that Wall Street is always looking for signals — especially from the Federal Reserve. While he said market action isn't always dictated by the Fed, stocks can be highly-reactive to the central bank when the economy is at an inflection point. "When the Federal Reserve matters — when it's tightening too aggressively or when it's easing, it's about to start easing — well then it really, really matters," he said. While the Fed can weaken the economy by raising interest rates, Cramer emphasized that it can also spur economic growth by cutting them. When the economy cools down, he said, the Fed will often stop hiking up rates and then start to bring them down. Cheaper overnight borrowing for banks mean that consumers and businesses have less incentive to save money and more incentive to spend or invest, Cramer said. Increased consumer spending and business growth create a "virtuous circle," Cramer said, as expanding companies hire and pay more employees who then go on to spend more money. Once the Fed stats to cut, Wall Street hedge funds tend to follow the same "playbook," Cramer said. They sell recession-proof stocks like utilities and consumer staples, and they buy cyclical stocks, or ones that do well as the economy flourishes. However, he advised investors to be careful and keep a diversified portfolio during these economic rotations. He added that it's also wise to be cautious when trying to pick up stocks that have gone out of favor. Some hedge funds, he said, "don't want to fight the Fed in either direction" and won't stop selling an out-of-favor group because it's become too cheap. According to Cramer, it's worthwhile to remember that Fed-induced economic changes can be reversed. However, he also said it can be difficult to discern when the Fed will change course, adding that central bank leaders can approach the job differently. "Any problem that's man-made can be unmade," he said. "And you need to factor this into your calculus or you'll miss out on some really major moves." Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest
