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13900.0
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2023-09-07 00:00:00 UTC
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XLK ETF: This Long-Term Winner Still Looks Attractive
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AAPL
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https://www.nasdaq.com/articles/xlk-etf%3A-this-long-term-winner-still-looks-attractive
|
nan
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nan
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The tech sector is back in 2023, riding the excitement regarding AI and other technological advances to massive gains. The Technology Select Sector SPDR ETF (NYSEARCA:XLK), which invests in the technology sector of the S&P 500 (SPX), has returned a scintillating 42.6% year-to-date. But this type of stellar performance is nothing new for this top tech ETF, which has been rewarding its investors with excellent returns for many years. So, let’s take a look at this long-term winner that is still attractive.
Stellar Track Record
XLK has established itself as a consistent, long-term winner. How good has XLK’s performance been over the years?
As of the end of the most recent quarter, XLK put up an impressive annualized total return of 19.5% over the past three years. Zooming out to five years and 10 years, the fund has managed to return over 20% on an annualized basis over each time frame, with outstanding total annualized returns of 21.5% over the past five years and 20.7% over the past 10 years.
These returns are great on their own accord, but how do they stack up against the broader market over the long term? As of the end of the most recent quarter, the Vanguard S&P 500 ETF (NYSEARCA:VOO), a good proxy for the S&P 500, returned 14.6% on an annualized basis over the past three years. Over the past five years, it has returned 12.3% on an annualized basis, and over the past 10 years, it has posted an annualized return of 12.8%.
These are solid returns, but XLK’s returns over each of the three time frames are superior, putting it among one of the rare ETFs that can say it has decisively beaten the market over the long run.
A Cost-Effective Option
XLK has given investors a market-beating performance over the past decade, and it does so for a very reasonable price, with an expense ratio of just 0.10%. This means that an investor putting $10,000 into XLK today would pay just $10 in fees in year one. Assuming the ETF returns 5% per year going forward and the fee remains 0.10%, this same investor would pay a reasonable $128 in fees over the course of the next 10 years.
It's worth noting that XLK's expense ratio is significantly lower than that of the Invesco QQQ Trust (NASDAQ:QQQ), the largest and most popular tech-centric ETF, which charges a still-reasonable 0.20%.
XLK's Holdings
XLK sports 67 holdings, covering the technology sector of the S&P 500. Below, you’ll find an overview of XLK’s top 10 holdings from TipRanks’ holdings tool.
Despite the fact that it has 67 holdings, this is a fairly concentrated fund, as its top 10 holdings account for 69.5% of assets, and its top two holdings, Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), combine to make up more than 44%. This isn’t necessarily a bad thing, but investors should be aware that XLK has a lot of exposure to these two stocks.
Part of the reason that XLK has outperformed the market over the years is that its top holdings include some of the most innovative companies in the U.S. market (not to mention globally), creating the products, technologies, and applications that have revolutionized the way many people work and live their day-to-day lives.
This is true whether it’s consumer-facing products from the likes of Apple and Microsoft, enterprise-facing products from Adobe (NASDAQ:ADBE), Salesforce (NYSE:CRM) and Oracle (NYSE:ORCL), or the semiconductor companies that make many of these applications possible, like Nivida (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO) and Advanced Micro Devices (NASDAQ:AMD).
You may notice that several big names are conspicuously absent from XLK’s portfolio. The likes of Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and Tesla (NASDAQ:TSLA), are not part of XLK’s portfolio.
This is because while we often think of them as tech stocks, the S&P index classifies Meta Platforms and Alphabet within communications services, and they can be found within the Communication Services Select Sector SPDR Fund (NYSEARCA:XLC).
Meanwhile, Amazon and Tesla are classified as consumer discretionary companies and can be found within the Consumer Discretionary Select Sector SDPR Fund (NYSEARCA:XLY), where they combine to make up more than 40% of the fund’s holdings.
An Outperform Smart Score Rating
TipRanks’ Smart Score system rates XLK’s top holdings highly. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. A score of 8 or above is equivalent to an Outperform rating. As you can see in the table above, an impressive eight out of XLK’s top 10 holdings have Outperform-equivalent Smart Scores of 8 or higher. XLK itself features an Outperform-equivalent ETF Smart Score of 9.
Is XLK Stock a Buy, According to Analysts?
Turning to Wall Street, XLK earns a Moderate Buy consensus rating based on 55 Buys, 12 Holds, and no Sell ratings assigned in the past three months. The average XLK stock price target of $199.81 implies 15.9% upside potential.
Looking Ahead
XLK has put up a banner performance in 2023. Still, this outstanding performance is nothing new -- it is one of the rare ETFs that has soundly beaten the broader market over a long period of time. The ETF enjoys favorable views from analysts and an excellent rating from TipRanks’ Smart Score System.
However, investors should be aware that while XLK owns many of today’s tech companies, it doesn’t own some of the archetypical technology stocks like Meta Platforms or Amazon, as these are grouped into different sectors by the S&P. Nevertheless, XLK’s investor-friendly expense ratio, impeccable track record, and strong portfolio of top technology companies make it look like a solid long-term bet.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despite the fact that it has 67 holdings, this is a fairly concentrated fund, as its top 10 holdings account for 69.5% of assets, and its top two holdings, Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), combine to make up more than 44%. As of the end of the most recent quarter, the Vanguard S&P 500 ETF (NYSEARCA:VOO), a good proxy for the S&P 500, returned 14.6% on an annualized basis over the past three years. A Cost-Effective Option XLK has given investors a market-beating performance over the past decade, and it does so for a very reasonable price, with an expense ratio of just 0.10%.
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Despite the fact that it has 67 holdings, this is a fairly concentrated fund, as its top 10 holdings account for 69.5% of assets, and its top two holdings, Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), combine to make up more than 44%. The likes of Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and Tesla (NASDAQ:TSLA), are not part of XLK’s portfolio. Meanwhile, Amazon and Tesla are classified as consumer discretionary companies and can be found within the Consumer Discretionary Select Sector SDPR Fund (NYSEARCA:XLY), where they combine to make up more than 40% of the fund’s holdings.
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Despite the fact that it has 67 holdings, this is a fairly concentrated fund, as its top 10 holdings account for 69.5% of assets, and its top two holdings, Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), combine to make up more than 44%. Zooming out to five years and 10 years, the fund has managed to return over 20% on an annualized basis over each time frame, with outstanding total annualized returns of 21.5% over the past five years and 20.7% over the past 10 years. The likes of Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and Tesla (NASDAQ:TSLA), are not part of XLK’s portfolio.
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Despite the fact that it has 67 holdings, this is a fairly concentrated fund, as its top 10 holdings account for 69.5% of assets, and its top two holdings, Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), combine to make up more than 44%. XLK's Holdings XLK sports 67 holdings, covering the technology sector of the S&P 500. An Outperform Smart Score Rating TipRanks’ Smart Score system rates XLK’s top holdings highly.
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13901.0
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2023-09-07 00:00:00 UTC
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Needham Reiterates Apple (AAPL) Buy Recommendation
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AAPL
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https://www.nasdaq.com/articles/needham-reiterates-apple-aapl-buy-recommendation-0
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nan
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nan
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Fintel reports that on September 7, 2023, Needham reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation.
Analyst Price Forecast Suggests 11.91% Upside
As of August 31, 2023, the average one-year price target for Apple is 204.70. The forecasts range from a low of 150.49 to a high of $252.00. The average price target represents an increase of 11.91% from its latest reported closing price of 182.91.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.74%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6401 funds or institutions reporting positions in Apple. This is an increase of 16 owner(s) or 0.25% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.82%. Total shares owned by institutions increased in the last three months by 0.27% to 9,940,919K shares.
The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.86% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,990K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 465,280K shares, representing an increase of 0.15%. The firm increased its portfolio allocation in AAPL by 8.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 352,024K shares representing 2.25% ownership of the company. In it's prior filing, the firm reported owning 347,041K shares, representing an increase of 1.42%. The firm increased its portfolio allocation in AAPL by 8.07% over the last quarter.
Geode Capital Management holds 291,538K shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 285,171K shares, representing an increase of 2.18%. The firm increased its portfolio allocation in AAPL by 8.78% over the last quarter.
Price T Rowe Associates holds 226,651K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 234,017K shares, representing a decrease of 3.25%. The firm increased its portfolio allocation in AAPL by 139.25% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Additional reading:
Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts)
APPLE INC. Officer’s Certificate
Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts)
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fintel reports that on September 7, 2023, Needham reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.82%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
|
Fintel reports that on September 7, 2023, Needham reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.82%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
|
Fintel reports that on September 7, 2023, Needham reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.82%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
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Fintel reports that on September 7, 2023, Needham reiterated coverage of Apple (NASDAQ:AAPL) with a Buy recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.82%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
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13902.0
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2023-09-07 00:00:00 UTC
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Wedbush Reiterates Apple (AAPL) Outperform Recommendation
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AAPL
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https://www.nasdaq.com/articles/wedbush-reiterates-apple-aapl-outperform-recommendation-3
|
nan
|
nan
|
Fintel reports that on September 7, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation.
Analyst Price Forecast Suggests 11.91% Upside
As of August 31, 2023, the average one-year price target for Apple is 204.70. The forecasts range from a low of 150.49 to a high of $252.00. The average price target represents an increase of 11.91% from its latest reported closing price of 182.91.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apple is 413,641MM, an increase of 7.74%. The projected annual non-GAAP EPS is 6.36.
For more in-depth coverage of Apple, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 6401 funds or institutions reporting positions in Apple. This is an increase of 16 owner(s) or 0.25% in the last quarter. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.82%. Total shares owned by institutions increased in the last three months by 0.27% to 9,940,919K shares.
The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 915,560K shares representing 5.86% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 465,990K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 465,280K shares, representing an increase of 0.15%. The firm increased its portfolio allocation in AAPL by 8.69% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 352,024K shares representing 2.25% ownership of the company. In it's prior filing, the firm reported owning 347,041K shares, representing an increase of 1.42%. The firm increased its portfolio allocation in AAPL by 8.07% over the last quarter.
Geode Capital Management holds 291,538K shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 285,171K shares, representing an increase of 2.18%. The firm increased its portfolio allocation in AAPL by 8.78% over the last quarter.
Price T Rowe Associates holds 226,651K shares representing 1.45% ownership of the company. In it's prior filing, the firm reported owning 234,017K shares, representing a decrease of 3.25%. The firm increased its portfolio allocation in AAPL by 139.25% over the last quarter.
Apple Background Information
(This description is provided by the company.)
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies in the U.S. information technology industry, along with Amazon, Google, Microsoft, and Facebook. Its hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the AirPods wireless earbuds, the AirPods Max headphones, and the HomePod smart speaker line. Apple's software includes iOS, iPadOS, macOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the Shazam music identifier, and the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro X, Logic Pro, and Xcode. Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Arcade, Apple Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple I and Apple II, grew quickly.
Additional reading:
Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts)
APPLE INC. Officer’s Certificate
Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts)
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fintel reports that on September 7, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.82%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
|
Fintel reports that on September 7, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.82%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
|
Fintel reports that on September 7, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.82%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
|
Fintel reports that on September 7, 2023, Wedbush reiterated coverage of Apple (NASDAQ:AAPL) with a Outperform recommendation. Average portfolio weight of all funds dedicated to AAPL is 4.13%, an increase of 8.82%. The put/call ratio of AAPL is 0.90, indicating a bullish outlook.
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13903.0
|
2023-09-07 00:00:00 UTC
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GLOBAL MARKETS-Stocks ease with Apple, dollar inches up after U.S. data
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-ease-with-apple-dollar-inches-up-after-u.s.-data
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, Sept 7 (Reuters) - Global stock indexes were mostly lower on Thursday, with the S&P 500 and Nasdaq falling with shares of Apple,and the U.S. dollar advanced after weaker-than-expected U.S. jobless claims data.
Initial claims for state unemployment benefits fell unexpectedly to 216,000 in the week ended Sept. 2 from a revised 229,000 the week before. The latest week's numbers were the lowest since February.
A separate report showed U.S. worker productivity in the second quarter was not as strong as initially announced.
Recent data has underscored the view that the U.S. economy remains resilient and that U.S. interest rates may need to stay higher for longer.
China's onshore yuan CNY=CFXS slid to a 16-year low versus the dollar, weighed down by a property slump, weak consumer spending and shrinking credit growth in the world's second-largest economy.
The U.S. dollar index =USD was up 0.1%, with the euro EUR=down 0.22% to $1.0703.
Recent economic reports are "supporting the case for continued aggregate income growth while pushing recession worries further into the future," said Karl Schamotta, chief market strategist at Corpay in Toronto.
Shares of Apple AAPL.O were down 3.2% after sources familiar with the matter said China has in recent weeks widened existing curbs on the use of iPhones by state employees.
The pan-European STOXX 600 index .STOXX lost 0.14% and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.36%.
U.S. Treasury yields mostly slipped following the U.S. economic data.
The yield on the benchmark U.S. 10-year Treasury note US10YT=RR fell to 4.27%.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Asian stock markets https://tmsnrt.rs/2zpUAr4
Oil cuts showing effects https://tmsnrt.rs/3EszfxJ
(Additional reporting by Gertrude Chavez-Dreyfuss in New York, Marc Jones in London and Kevin Buckland in Tokyo; Editing by Susan Fenton and Nick Zieminski)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple AAPL.O were down 3.2% after sources familiar with the matter said China has in recent weeks widened existing curbs on the use of iPhones by state employees. By Caroline Valetkevitch NEW YORK, Sept 7 (Reuters) - Global stock indexes were mostly lower on Thursday, with the S&P 500 and Nasdaq falling with shares of Apple,and the U.S. dollar advanced after weaker-than-expected U.S. jobless claims data. China's onshore yuan CNY=CFXS slid to a 16-year low versus the dollar, weighed down by a property slump, weak consumer spending and shrinking credit growth in the world's second-largest economy.
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Shares of Apple AAPL.O were down 3.2% after sources familiar with the matter said China has in recent weeks widened existing curbs on the use of iPhones by state employees. Initial claims for state unemployment benefits fell unexpectedly to 216,000 in the week ended Sept. 2 from a revised 229,000 the week before. Recent economic reports are "supporting the case for continued aggregate income growth while pushing recession worries further into the future," said Karl Schamotta, chief market strategist at Corpay in Toronto.
|
Shares of Apple AAPL.O were down 3.2% after sources familiar with the matter said China has in recent weeks widened existing curbs on the use of iPhones by state employees. By Caroline Valetkevitch NEW YORK, Sept 7 (Reuters) - Global stock indexes were mostly lower on Thursday, with the S&P 500 and Nasdaq falling with shares of Apple,and the U.S. dollar advanced after weaker-than-expected U.S. jobless claims data. Initial claims for state unemployment benefits fell unexpectedly to 216,000 in the week ended Sept. 2 from a revised 229,000 the week before.
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Shares of Apple AAPL.O were down 3.2% after sources familiar with the matter said China has in recent weeks widened existing curbs on the use of iPhones by state employees. Initial claims for state unemployment benefits fell unexpectedly to 216,000 in the week ended Sept. 2 from a revised 229,000 the week before. The U.S. dollar index =USD was up 0.1%, with the euro EUR=down 0.22% to $1.0703.
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13904.0
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2023-09-07 00:00:00 UTC
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Weakness in Apple Weighs on Tech Stocks and Drags Broader Marker Lower
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AAPL
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https://www.nasdaq.com/articles/weakness-in-apple-weighs-on-tech-stocks-and-drags-broader-marker-lower
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) Thursday closed down -0.32%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.17%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.73%.
Stocks on Thursday settled mixed, with the S&P 500 falling to a 1-1/2 week low and the Nasdaq 100 index falling to a one-week low. The broader market was under pressure Thursday due to weakness in technology stocks. Apple closed down more than -2% to add to Wednesday’s -3% loss and lead technology stocks lower on a report from the Wall Street Journal that said China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Thursday's strength in defensive pharmaceutical and healthcare stocks supported the Dow Jones Industrials index.
Stocks were also under pressure from Thursday’s news that U.S. weekly initial unemployment claims unexpectedly fell to a 7-month low, a sign of strength in the labor market that may prompt the Fed to keep interest rates higher for longer.
Thursday's Fed comments were mostly dovish and helped lift stocks from their worst levels. New York Fed President Williams said U.S. monetary policy is "in a good place," but policymakers will need to parse through data to decide on how to proceed on interest rates. Also, Chicago Fed President Goolsbee said the debate within the Fed is "very rapidly approaching the time when our argument is not going to be about how high should rates go but to how long we need to keep rates at this position before we're sure that we're on the path back to the inflation target."
On the negative side, Atlanta Fed President Bostic said the U.S. economy is still working through pandemic dynamics, and the Fed "still has work to do" to bring inflation to its 2% target.
U.S. weekly initial unemployment claims unexpectedly fell -13,000 to a 7-month low of 216,000, showing a stronger labor market than expectations of an increase to 233,000. Weekly continuing claims fell -40,000 to 1.679 million, showing a stronger labor market than expectations of 1.719 million.
U.S. Q2 nonfarm productivity was revised lower to +3.5% from the initially reported +3.7%, stronger than expectations of +3.4%. Also, Q2 unit labor costs were revised higher to +2.2% from the initially reported +1.6%, stronger than expectations of +1.9%.
The markets are discounting the odds at 7% for a +25 bp rate hike at the September 20 FOMC meeting and 48% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields on Thursday moved lower. The 10-year T-note yield fell from a 2-week high of 4.304% and finished down -2.2 bp at 4.258%. The 10-year German bund yield fell -4.0 bp to 2.614%. The 10-year UK gilt yield fell -8.0 bp to 4.454%.
Overseas stock markets Thursday settled lower. The Euro Stoxx 50 closed down -0.41%. China’s Shanghai Composite Index closed down -1.13%. Japan’s Nikkei Stock Index closed down -0.75%.
Eurozone Q2 GDP was revised lower to +0.1% q/q and +0.5% y/y from the previously reported +0.3% q/q and +0.6% y/y.
German July industrial production fell -0.8% m/m, weaker than expectations of -0.4% y/y.
Chinese trade data was slightly better than expected. China Aug exports fell -8.8% y/y, a smaller decline than expectations of -9.0% y/y. Also, Aug imports fell -7.3% y/y, a smaller decline than expectations of -9.0% y/y.
Today’s stock movers…
Apple (AAPL) closed down more than -2% to lead losers in the Dow Jones Industrials, adding to Wednesday’s -3% drop, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Apple suppliers are also falling on the news, with Qualcomm (QCOM), Skyworks Solutions (SWKS), and Qorvo (QRVO) closing down more than -7%.
Seagate Technology Holdings Plc (STX) closed down more than -10% to lead losers in the SP 500 after Barclays downgraded the stock to equal weight from overweight.
Align Technology (ALGN) closed down more than -7% to lead losers in the Nasdaq 100 on weakness in healthcare suppliers after Neogen, a maker of food safety tests, forecast “modestly negative” core growth in its Q1 preliminary view.
Insulet (PODD) closed down more than -7% after a New England Journal of Medicine article said the use of semaglutides shots like Ozempic and Wegovy in patients with type 1 diabetes reduces the need for insulin injections.
FMC Corp (FMC) closed down more than -7% after Blue Orca Capital said FMC’s patents aren’t enough to protect it from competition from rival generic products.
Rollins (ROL) closed down more than -6 % after holder LOR Inc. announced a sale of 38.7 million shares of the stock via Goldman Sachs and Morgan Stanley.
Verint Systems (VRNT) closed down more than -19% after reporting Q2 adjusted revenue of $210.4 million, weaker than the consensus of $226.6 million, and cut its full-year adjusted revenue forecast to $910 million from a previous estimate of $935 million, below the consensus of $933.6 million.
C3.ai (AI) closed down more than -12% after saying it expects its fiscal-year adjusted loss will be as much as -$100 million, wider than a previous estimate of -$75 million, and that profitability would take longer than expected.
Dell Technologies (DELL) closed down more than -2% after Barclays downgraded the stock to underweight from equal weight.
Nvidia (NVDA) closed down more than -1%, adding to Wednesday’s -2% fall after Research Affiliates said the stock is “a textbook story of a Big Market Delusion,” and with shares trading around 110 times earnings, the stock is priced beyond perfection.
Defensive health insurance and dividend paying pharmaceutical stocks rose Thursday. Centene (CNC) closed up more than +4% to lead gainers in the S&P 500. Also, Church & Dwight (CHD), Eli Lilly (LLY), Amgen (AMGN), AbbVie (ABBV), and Cigna Group (CI) closed up more than +2%.
Westrock (WRK) closed up more than +4% after the Wall Street Journal reported the company is nearing a deal to merge with Smurfit Kappa.
G-III Apparel Group Ltd (GIII) closed up more than +24% after reporting Q2 net sales of $659.8 million, well above the consensus of $592.2 million.
UiPath (PATH) closed up more than +11% after reporting Q2 total revenue of $287.3 million, better than the consensus of $282.3 million, and sees 2024 revenue of $1.27 billion-$1.28 billion, stronger than the consensus of $1.27 billion.
Cboe Global Markets (CBOE) closed up more than +2% after reporting the average daily volume for August was up +25.4%
T-Mobile US (TMUS) closed up more than +2% to lead gainers in the Nasdaq 100 after Bloomberg Intelligence said the launch of the iPhone 15 could provide a boost to T-Mobile’s premium service plans.
McDonald’s (MCD) closed up more than +1% after Wells Fargo Securities upgraded the stock to overweight from equal weight.
Across the markets…
December 10-year T-notes (ZNZ23) on Thursday closed up +9.5 ticks, and the 10-year T-note yield fell -2.2 bp to 4.258%. Dec T-notes Thursday today recovered from a 1-1/2 week low, and the 10-year T-note yield fell back from a 2-week high of 4.304% as a slump in stocks sparked safe-haven demand for government debt. T-notes this Thursday morning initially moved lower on news that weekly jobless claims unexpectedly fell to a 7-month low and that Q2 unit labor costs were revised higher.
More Stock Market News from Barchart
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1 Standout Oil & Gas Stock Under $10 with 20% Upside Potential
3 Surprising Stocks Warren Buffett Recently Bought
Simon Property Group Gets Unusually Active: Time to Buy the Mall Owner?
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Today’s stock movers… Apple (AAPL) closed down more than -2% to lead losers in the Dow Jones Industrials, adding to Wednesday’s -3% drop, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Apple closed down more than -2% to add to Wednesday’s -3% loss and lead technology stocks lower on a report from the Wall Street Journal that said China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Align Technology (ALGN) closed down more than -7% to lead losers in the Nasdaq 100 on weakness in healthcare suppliers after Neogen, a maker of food safety tests, forecast “modestly negative” core growth in its Q1 preliminary view.
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Today’s stock movers… Apple (AAPL) closed down more than -2% to lead losers in the Dow Jones Industrials, adding to Wednesday’s -3% drop, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Apple closed down more than -2% to add to Wednesday’s -3% loss and lead technology stocks lower on a report from the Wall Street Journal that said China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. U.S. weekly initial unemployment claims unexpectedly fell -13,000 to a 7-month low of 216,000, showing a stronger labor market than expectations of an increase to 233,000.
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Today’s stock movers… Apple (AAPL) closed down more than -2% to lead losers in the Dow Jones Industrials, adding to Wednesday’s -3% drop, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. What you need to know… The S&P 500 Index ($SPX) (SPY) Thursday closed down -0.32%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.17%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.73%. Stocks were also under pressure from Thursday’s news that U.S. weekly initial unemployment claims unexpectedly fell to a 7-month low, a sign of strength in the labor market that may prompt the Fed to keep interest rates higher for longer.
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Today’s stock movers… Apple (AAPL) closed down more than -2% to lead losers in the Dow Jones Industrials, adding to Wednesday’s -3% drop, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Stocks on Thursday settled mixed, with the S&P 500 falling to a 1-1/2 week low and the Nasdaq 100 index falling to a one-week low. Thursday's strength in defensive pharmaceutical and healthcare stocks supported the Dow Jones Industrials index.
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13905.0
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2023-09-07 00:00:00 UTC
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Shares of Apple suppliers fall on reports of China iPhone curbs
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AAPL
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https://www.nasdaq.com/articles/shares-of-apple-suppliers-fall-on-reports-of-china-iphone-curbs
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nan
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nan
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Recasts, changes media keyword to CHINA-APPLE/STOCKS
TAIPEI, Sept 8 (Reuters) - The shares of several major Apple AAPL.O suppliers fell on Friday, following reports that China had widened curbs on use of iPhones by state employees, fanning fears about sales prospects in one of the U.S. company's biggest markets.
Staff in at least three Chinese ministries and government bodies were told iPhones at work, sources familiar with the matter told Reuters.
Taiwan's TSMC 2330.TW, the world's largest contract chipmaker and a major Apple supplier, dropped about 0.7%, outpacing a fall of about 0.3% in the benchmark index .TWII.
Shares of ASE Technology Holding Co Ltd 3711.TW, one of the world's largest semiconductor testing and packaging firms, fell more than 2%, while camera lens-maker Largan Precision Co Ltd 3008.TW dropped more than 3%.
China could well expand its curbs on officials' use of iPhones, said Allen Huang, executive director of Mega International Investment Services Corp in Taipei.
"In recent years Chinese nationalism has been causing trouble, influencing policy guidance," he said.
Chinese mobile phone maker Huawei Technologies' new smartphones will also do well, pressuring sales of the new iPhone 15, Huang added.
In China, Luxshare Precision Industry 002475.SZ, maker of connector cables for the iPhone and MacBook as well as AirPods, which also owns factories capable of making iPhones, fell 1.5%. Its shares were also hit last week by the Huawei launch.
Japanese chip equipment maker Tokyo Electron 8035.T dropped 4% on Friday.
Nearly a fifth of Apple's revenue is generated in China, where thousands of workers are employed by the company and its suppliers. During a visit to Beijing in March, Chief Executive Tim Cook stressed Apple's long ties with the country.
(Reporting by Ben Blanchard and Jeanny Kao; Additional reporting by Brenda Goh in Shanghai and Sam Nussey in Tokyo; Editing by Edmund Klamann and Clarence Fernandez)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Recasts, changes media keyword to CHINA-APPLE/STOCKS TAIPEI, Sept 8 (Reuters) - The shares of several major Apple AAPL.O suppliers fell on Friday, following reports that China had widened curbs on use of iPhones by state employees, fanning fears about sales prospects in one of the U.S. company's biggest markets. Shares of ASE Technology Holding Co Ltd 3711.TW, one of the world's largest semiconductor testing and packaging firms, fell more than 2%, while camera lens-maker Largan Precision Co Ltd 3008.TW dropped more than 3%. China could well expand its curbs on officials' use of iPhones, said Allen Huang, executive director of Mega International Investment Services Corp in Taipei.
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Recasts, changes media keyword to CHINA-APPLE/STOCKS TAIPEI, Sept 8 (Reuters) - The shares of several major Apple AAPL.O suppliers fell on Friday, following reports that China had widened curbs on use of iPhones by state employees, fanning fears about sales prospects in one of the U.S. company's biggest markets. Taiwan's TSMC 2330.TW, the world's largest contract chipmaker and a major Apple supplier, dropped about 0.7%, outpacing a fall of about 0.3% in the benchmark index .TWII. Chinese mobile phone maker Huawei Technologies' new smartphones will also do well, pressuring sales of the new iPhone 15, Huang added.
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Recasts, changes media keyword to CHINA-APPLE/STOCKS TAIPEI, Sept 8 (Reuters) - The shares of several major Apple AAPL.O suppliers fell on Friday, following reports that China had widened curbs on use of iPhones by state employees, fanning fears about sales prospects in one of the U.S. company's biggest markets. Chinese mobile phone maker Huawei Technologies' new smartphones will also do well, pressuring sales of the new iPhone 15, Huang added. In China, Luxshare Precision Industry 002475.SZ, maker of connector cables for the iPhone and MacBook as well as AirPods, which also owns factories capable of making iPhones, fell 1.5%.
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Recasts, changes media keyword to CHINA-APPLE/STOCKS TAIPEI, Sept 8 (Reuters) - The shares of several major Apple AAPL.O suppliers fell on Friday, following reports that China had widened curbs on use of iPhones by state employees, fanning fears about sales prospects in one of the U.S. company's biggest markets. Staff in at least three Chinese ministries and government bodies were told iPhones at work, sources familiar with the matter told Reuters. Taiwan's TSMC 2330.TW, the world's largest contract chipmaker and a major Apple supplier, dropped about 0.7%, outpacing a fall of about 0.3% in the benchmark index .TWII.
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13906.0
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2023-09-07 00:00:00 UTC
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Japan's Nikkei extends losses on US rate jitters, iPhone ban
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AAPL
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https://www.nasdaq.com/articles/japans-nikkei-extends-losses-on-us-rate-jitters-iphone-ban
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nan
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nan
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By Kevin Buckland
TOKYO, Sept 8 (Reuters) - Japan's Nikkei share average fell for a second session on Friday, tracking overnight Wall Street losses as worries about tighter U.S. Federal Reserve policy and a Chinese iPhone ban weighed on sentiment.
Tech and industrial companies led losses, with chip-making equipment giant Tokyo Electron 8035.T dropping 4% to become the Nikkei's .N225 biggest drag, shaving off 95 index points. Mobile game and ad company CyberAgent 4751.T dropped nearly 6% to be the Nikkei's top percentage decliner.
The Nikkei slid about 1% to 32,681.31 by the midday break, after earlier touching a one-week low of 32,535.58. On Thursday, the stock benchmark lost 0.75%, after hitting a more than one-month peak of 33,322.45.
The index snapped an eight-day win streak on Thursday, and put the Nikkei on track for a small loss this week. It had rallied as much as 6.55% from its low on Aug. 18 to this week's high.
The broader Topix .TOPX sagged 0.61% on Friday, also falling for a second day after marking a 33-year peak early in Thursday's session.
A Topix index of growth stocks .TOPXG slumped 0.79%, nearly twice as much as the value share index .TOPXV.
For the week, however, the Topix remained up about 1%.
"We're heading into the weekend, and if you consider that until Wednesday the Nikkei had seen eight straight days of gains, this is an environment ripe for some position adjustments and profit taking," said Maki Sawada, a strategist at Nomura Securities.
Of the Nikkei's 225 components, 183 fell, 40 rose and two were flat.
Among Nikkei industry groups, utilities - a traditional defensive sector - and real estate advanced.
Overnight, a decline in new jobless claims raised speculation that the Fed might continue with monetary tightening.
Apple AAPL.O, its suppliers and peers with large China exposure dragged on Wall Street indexes as Beijing eyed broadening the iPhone ban to state firms and agencies.
(Reporting by Kevin Buckland; Editing by Rashmi Aich)
((Kevin.Buckland@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O, its suppliers and peers with large China exposure dragged on Wall Street indexes as Beijing eyed broadening the iPhone ban to state firms and agencies. By Kevin Buckland TOKYO, Sept 8 (Reuters) - Japan's Nikkei share average fell for a second session on Friday, tracking overnight Wall Street losses as worries about tighter U.S. Federal Reserve policy and a Chinese iPhone ban weighed on sentiment. "We're heading into the weekend, and if you consider that until Wednesday the Nikkei had seen eight straight days of gains, this is an environment ripe for some position adjustments and profit taking," said Maki Sawada, a strategist at Nomura Securities.
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Apple AAPL.O, its suppliers and peers with large China exposure dragged on Wall Street indexes as Beijing eyed broadening the iPhone ban to state firms and agencies. By Kevin Buckland TOKYO, Sept 8 (Reuters) - Japan's Nikkei share average fell for a second session on Friday, tracking overnight Wall Street losses as worries about tighter U.S. Federal Reserve policy and a Chinese iPhone ban weighed on sentiment. Tech and industrial companies led losses, with chip-making equipment giant Tokyo Electron 8035.T dropping 4% to become the Nikkei's .N225 biggest drag, shaving off 95 index points.
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Apple AAPL.O, its suppliers and peers with large China exposure dragged on Wall Street indexes as Beijing eyed broadening the iPhone ban to state firms and agencies. By Kevin Buckland TOKYO, Sept 8 (Reuters) - Japan's Nikkei share average fell for a second session on Friday, tracking overnight Wall Street losses as worries about tighter U.S. Federal Reserve policy and a Chinese iPhone ban weighed on sentiment. Tech and industrial companies led losses, with chip-making equipment giant Tokyo Electron 8035.T dropping 4% to become the Nikkei's .N225 biggest drag, shaving off 95 index points.
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Apple AAPL.O, its suppliers and peers with large China exposure dragged on Wall Street indexes as Beijing eyed broadening the iPhone ban to state firms and agencies. By Kevin Buckland TOKYO, Sept 8 (Reuters) - Japan's Nikkei share average fell for a second session on Friday, tracking overnight Wall Street losses as worries about tighter U.S. Federal Reserve policy and a Chinese iPhone ban weighed on sentiment. It had rallied as much as 6.55% from its low on Aug. 18 to this week's high.
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13907.0
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2023-09-07 00:00:00 UTC
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3 Surprising Stocks Warren Buffett Recently Bought
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AAPL
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https://www.nasdaq.com/articles/3-surprising-stocks-warren-buffett-recently-bought
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nan
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nan
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Warren Buffett is widely regarded as one of the most successful investors of all time. His company, Berkshire Hathaway (BRK.B), owns a diversified portfolio of stocks, ranging from technology giants like Apple (AAPL) and Amazon (AMZN) to consumer staples like Coca-Cola (KO) and Kraft Heinz (KHC).
However, in the second quarter of 2023, Buffett and his team made some noteworthy moves in the stock market. Berkshire reduced its overall equity exposure by selling shares of some of their top holdings, such as Bank of America, Chevron, and Verizon - and even scaled back their own share repurchases. But Buffett's firm also bought shares of three homebuilder stocks during Q2: Lennar (LEN), NVR (NVR), and D.R. Horton (DHI).
Why would Buffett invest in these homebuilder stocks, despite a challenging market with mortgage rates lingering near 22-year highs? Buffett may see value in these stocks, as they trade at low price-to-earnings ratios and have strong growth prospects - and moreover, the billionaire may anticipate a rebound in the housing market, as the demand for new homes remains high and the supply of existing homes is low.
Here's a look at all three stocks right now, and what investors can glean from Buffett's buy-in.
Lennar: A Leader in the Homebuilding Industry
Lennar Corporation (LEN) is one of the largest and most diversified homebuilders in the U.S., with a strong market share, a wide geographic presence, and a focus on quality and innovation. The company operates in 21 states and offers a variety of products, ranging from single-family homes to multifamily communities.
Lennar's stock has been on a roll in 2023, up by 31.6% year-to-date to beat the S&P 500 Index ($SPX), which has gained about 16%. That said, it's worth pointing out that housing stocks have outperformed as a group in 2023; for perspective, the S&P Homebuilders SPDR (XHB) is up 36% since the start of the year.
www.barchart.com
In June, Lennar reported outstanding earnings for Q2 2023 that surpassed analysts' expectations. They delivered 17,074 homes (up 3% YoY) and received 17,885 new orders (up 1% YoY). Home sales revenues rose by 5% to $7.7 billion, with net earnings reaching $1.2 billion, up by 9%. Gross margin improved to 22.5%, and net margin hit 15.8%.
www.barchart.com
The good news doesn't stop there. Lennar's valuation and growth metrics shine in comparison to its peers. The stock's trailing 12 months price/earnings (P/E) ratio of 7.52 and forward P/E of 9.54 are both lower than industry averages.
Among analysts, the average price target for Lennar’s stock is $135.33, which implies an upside potential of about 15% from current levels. The consensus moderate buy recommendation is based on 15 analysts offering ratings. Among them, seven analysts suggest a strong buy, two analysts suggest a moderate buy, four analysts suggest a hold, and two analysts suggest a strong sell.
www.barchart.com
Plus, if you're looking for that Berkshire-style passive income out of your housing stocks, take note: LEN offers a 1.28% dividend yield to shareholders.
NVR: A High-Margin and Low-Risk Business Model
NVR, Inc. is a homebuilder operating under brands like Ryan Homes, NVHomes, and Heartland Homes. They also offer mortgage banking and title services to homebuyers. What sets them apart is their strategy of building homes on land they don't own, which reduces capital requirements and market risk.
In terms of stock performance, NVR is up 38%, outpacing not only the S&P 500, but also the XHB - despite the stock's significantly high per-share price, which could be a very real barrier to entry for non-Buffett investors.
www.barchart.com
In Q2 2023, NVR beat earnings expectations as the company delivered 5,883 homes (up 9% YoY) and received 6,016 new orders (up 7% YoY). Homebuilding revenues rose 10% to $2.3 billion, with net income up 16% to $404 million. EPS was $116.54, beating estimates by 15.41% - despite pressure from lower home prices and higher selling expenses.
Analysts expect NVR's bottom line to stay under pressure going forward, too. Consensus estimates call for Q3 EPS of $113.01, a 4.64% decrease YoY, and FY 2023 EPS of $440.88, a 10.36% decrease YoY.
www.barchart.com
NVR’s analyst ratings are neutral, with a consensus hold recommendation based on the five analysts offering ratings. Among them, two suggest a strong buy, two suggest a hold, and one suggests a strong sell. Plus, the average price target for NVR’s stock is $6,416.67, which implies expected upside of less than 1% from current levels.
www.barchart.com
NVR’s strategic company moves appear to be limited, as the company has not announced any major acquisitions, expansions, or innovations in the recent past. The company has maintained its focus on its core business model of building homes on land that it does not own, which has enabled it to generate high margins and low risk.
However, this also limits its growth potential and market share, as it depends on the availability and quality of land from third-party developers.
D.R. Horton: A Value-Oriented, Customer-Centric Approach
D.R. Horton is a homebuilder that prioritizes affordability and customer satisfaction, catering especially to first-time and entry-level buyers through its D.R. Horton, Emerald Homes, Express Homes, and Freedom Homes brands. They also offer mortgage banking and title services.
DHI has gained 31.5% YTD, outperforming the S&P 500 - but, as with LEN, it's still narrowly lagging the housing-focused XHB.
www.barchart.com
In Q2 2023, DHI reported record revenues and earnings that exceeded expectations. The company delivered 24,463 homes (up 35% YoY) and received 27,059 new orders (up 35% YoY). Homebuilding revenues surged by 42% to $7.3 billion, with net income reaching $1 billion. EPS for the quarter was $3.06, a substantial increase from the previous quarter and a pleasant surprise for analysts.
Analysts expect DHI to grow its bottom line going forward. Consensus estimates call for EPS of $3.97 for Q3 (a 14.99% increase YoY) and $13.27 for FY 2023 (a 19.62% increase YoY).
www.barchart.com
Analyst ratings lean positive overall, with a moderate buy consensus based on 18 analysts in coverage. Nine suggest a strong buy, one recommends a moderate buy, seven recommend holding, and one advises a strong sell.
The average price target is $144.19, which implies expected upside of more than 23% from current levels.
www.barchart.com
D.R. Horton's stock is on the upswing, driven by strong earnings and Buffett's interest. Their focus on affordability and innovation makes them a compelling choice in the homebuilding sector, and they also offer a decent dividend yield of 0.88%.
What Does This Mean for Investors?
It appears that Buffett might see these stocks as hidden gems in the market, and his move into this sector likely hints at his confidence in the housing market's long-term strength. And while the year-to-date relative strength in many housing stocks is certainly compelling, the lingering risks associated with a hawkish Fed and an inflation-strapped consumer may still be too much for the average non-billionaire investor to bear.
That said, for investors looking to follow Buffett's lead into homebuilding - at a somewhat smaller scale, given the current environment - Lennar stands out among this trio with its promising growth prospects, solid dividend yield, attractive operational metrics, and favorable analyst ratings.
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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His company, Berkshire Hathaway (BRK.B), owns a diversified portfolio of stocks, ranging from technology giants like Apple (AAPL) and Amazon (AMZN) to consumer staples like Coca-Cola (KO) and Kraft Heinz (KHC). And while the year-to-date relative strength in many housing stocks is certainly compelling, the lingering risks associated with a hawkish Fed and an inflation-strapped consumer may still be too much for the average non-billionaire investor to bear. That said, for investors looking to follow Buffett's lead into homebuilding - at a somewhat smaller scale, given the current environment - Lennar stands out among this trio with its promising growth prospects, solid dividend yield, attractive operational metrics, and favorable analyst ratings.
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His company, Berkshire Hathaway (BRK.B), owns a diversified portfolio of stocks, ranging from technology giants like Apple (AAPL) and Amazon (AMZN) to consumer staples like Coca-Cola (KO) and Kraft Heinz (KHC). The consensus moderate buy recommendation is based on 15 analysts offering ratings. Among them, seven analysts suggest a strong buy, two analysts suggest a moderate buy, four analysts suggest a hold, and two analysts suggest a strong sell.
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His company, Berkshire Hathaway (BRK.B), owns a diversified portfolio of stocks, ranging from technology giants like Apple (AAPL) and Amazon (AMZN) to consumer staples like Coca-Cola (KO) and Kraft Heinz (KHC). But Buffett's firm also bought shares of three homebuilder stocks during Q2: Lennar (LEN), NVR (NVR), and D.R. Buffett may see value in these stocks, as they trade at low price-to-earnings ratios and have strong growth prospects - and moreover, the billionaire may anticipate a rebound in the housing market, as the demand for new homes remains high and the supply of existing homes is low.
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His company, Berkshire Hathaway (BRK.B), owns a diversified portfolio of stocks, ranging from technology giants like Apple (AAPL) and Amazon (AMZN) to consumer staples like Coca-Cola (KO) and Kraft Heinz (KHC). But Buffett's firm also bought shares of three homebuilder stocks during Q2: Lennar (LEN), NVR (NVR), and D.R. Why would Buffett invest in these homebuilder stocks, despite a challenging market with mortgage rates lingering near 22-year highs?
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13908.0
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2023-09-07 00:00:00 UTC
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Highly Ranked Stocks to Buy Among a Booming Industry
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AAPL
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https://www.nasdaq.com/articles/highly-ranked-stocks-to-buy-among-a-booming-industry
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nan
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nan
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At the moment the Zacks Instruments-Control Industry in is the top 1% of over 250 Zacks industries.
While many of these companies may not be the first names investors think of among the broader technology sector demand for their services continues to grow.
Furthermore, now looks like an ideal time to buy several stocks in the instruments-control space as they are standing out with a Zacks Rank #1 (Strong Buy).
Badger Meter BMI
Longevity regarding essential business operations that correlate to steady growth is the main reason to consider Badger Meter’s stock.
This also reconfirms why a premium may be warranted for Badger Meter’s stock with the company providing flow measurement, control, and communication solutions to water and gas utilities, municipalities, and industrial customers worldwide.
Badger Meter’s anticipated top and bottom line expansion has led to its stock soaring +50% this year to easily top the S&P 500’s +17% and the Nasdaq’s +31%. To that point, annual earnings are now expected to leap 26% in fiscal 2023 and rise another 8% in FY24 to $3.10 per share. On the top line, total sales are forecasted to climb 20% in FY23 and rise another 6% in FY24 to $717.39 million.
Image Source: Zacks Investment Research
Transcat TRNS
Steady but expansive growth prospects and a special niche in the Instruments-Control Industry make Transcat’s stock attractive.
Transcat distributes test and measurement instruments along with providing accredited calibration services to a variety of markets including the life sciences, pharmaceutical, and petroleum refining industry among others.
Largely outperforming the broader indexes, Transcat’s stock has soared +60% YTD with earnings projected to climb 18% in its current fiscal 2024 and jump another 16% in FY25 to $1.94 per share. Total sales are forecasted to rise 9% in FY24 and pop another 8% in FY25 to $274.36 million.
Image Source: Zacks Investment Research
Woodward WWD
Another company with a unique niche as it relates to the Zacks Instrument-Controls Industry is Woodward. As a provider of energy control and optimization solutions, Woodward provides a number of products that serve the commercial aerospace, business jet, military, and energy markets.
Woodward’s stock has risen +37% this year to also edge the broader indexes. The company’s growth trajectory points to more upside with FY23 earnings now expected to skyrocket 51% at $4.15 per share compared to $2.75 a share last year. Plus, FY24 earnings are projected to rise another 9%.
More intriguing and indicative of more short-term upside in Woodward stock is that over the last 60 days, FY23 and FY24 earnings estimates have soared 16% and 11% respectively.
Image Source: Zacks Investment Research
In regards to sales, Woodward is expecting 22% growth in FY23 and another 5% growth in FY24 with projections at $3.05 billion. It’s also noteworthy that Woodward offers a modest 0.68% dividend in an industry where most companies are focused on expansive growth and don’t offer a payout.
Image Source: Zacks Investment Research
Takeaway
With inflationary concerns starting to resurface, these highly-ranked Zacks Instruments-Control Industry stocks are very appealing.
There will naturally be fears that many companies could still experience stalling growth associated with broader economic headwinds but these stocks appear to be ahead of the curve attributed to their growing business industry.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Badger Meter, Inc. (BMI) : Free Stock Analysis Report
Transcat, Inc. (TRNS) : Free Stock Analysis Report
Woodward, Inc. (WWD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Transcat, Inc. (TRNS) : Free Stock Analysis Report Woodward, Inc. (WWD) : Free Stock Analysis Report To read this article on Zacks.com click here. This also reconfirms why a premium may be warranted for Badger Meter’s stock with the company providing flow measurement, control, and communication solutions to water and gas utilities, municipalities, and industrial customers worldwide. Transcat distributes test and measurement instruments along with providing accredited calibration services to a variety of markets including the life sciences, pharmaceutical, and petroleum refining industry among others.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Transcat, Inc. (TRNS) : Free Stock Analysis Report Woodward, Inc. (WWD) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Transcat TRNS Steady but expansive growth prospects and a special niche in the Instruments-Control Industry make Transcat’s stock attractive. Image Source: Zacks Investment Research In regards to sales, Woodward is expecting 22% growth in FY23 and another 5% growth in FY24 with projections at $3.05 billion.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Transcat, Inc. (TRNS) : Free Stock Analysis Report Woodward, Inc. (WWD) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Transcat TRNS Steady but expansive growth prospects and a special niche in the Instruments-Control Industry make Transcat’s stock attractive. Image Source: Zacks Investment Research Woodward WWD Another company with a unique niche as it relates to the Zacks Instrument-Controls Industry is Woodward.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Transcat, Inc. (TRNS) : Free Stock Analysis Report Woodward, Inc. (WWD) : Free Stock Analysis Report To read this article on Zacks.com click here. At the moment the Zacks Instruments-Control Industry in is the top 1% of over 250 Zacks industries. Image Source: Zacks Investment Research In regards to sales, Woodward is expecting 22% growth in FY23 and another 5% growth in FY24 with projections at $3.05 billion.
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13909.0
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2023-09-07 00:00:00 UTC
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New flaw in Apple devices led to spyware infection, researchers say
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AAPL
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https://www.nasdaq.com/articles/new-flaw-in-apple-devices-led-to-spyware-infection-researchers-say
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nan
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nan
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By Christopher Bing and Zeba Siddiqui
Sept 7 - Researchers at digital watchdog group Citizen Lab said on Thursday they found spyware they linked to Israeli firm NSO that exploited a newly discovered flaw in Apple AAPL.O devices.
While inspecting the Apple device of an employee of a Washington-based civil society group last week, Citizen Lab said it found the flaw had been used to infect the device with NSO's Pegasus spyware, it said in a statement.
"This shows that civil society is once again serving as the early warning system about really sophisticated attacks," said John Scott-Railton, senior researcher at Citizen Lab, which is based at the University of Toronto's Munk School of Global Affairs and Public Policy.
Citizen Lab did not provide further details on the affected individual or the organization.
The flaw allowed compromise of iPhones running the latest version of iOS (16.6) without any interaction from the victim, the digital watchdog said.
Apple issued new updates on its devices after investigating the flaws reported by Citizen Lab. An Apple spokesperson said it had no further comment, while Citizen Lab urged consumers to update their devices.
A NSO spokesperson said it did not have any immediate comment on the Citizen Lab research.
The Israeli firm has been blacklisted by the U.S. government since 2021 for alleged abuses, including surveillance of government officials and journalists.
(Reporting by Zeba Siddiqui and Christopher Bing; Editing by Jamie Freed)
((zeba.siddiqui@tr.com; christopher.bing@tr.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Christopher Bing and Zeba Siddiqui Sept 7 - Researchers at digital watchdog group Citizen Lab said on Thursday they found spyware they linked to Israeli firm NSO that exploited a newly discovered flaw in Apple AAPL.O devices. "This shows that civil society is once again serving as the early warning system about really sophisticated attacks," said John Scott-Railton, senior researcher at Citizen Lab, which is based at the University of Toronto's Munk School of Global Affairs and Public Policy. The flaw allowed compromise of iPhones running the latest version of iOS (16.6) without any interaction from the victim, the digital watchdog said.
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By Christopher Bing and Zeba Siddiqui Sept 7 - Researchers at digital watchdog group Citizen Lab said on Thursday they found spyware they linked to Israeli firm NSO that exploited a newly discovered flaw in Apple AAPL.O devices. While inspecting the Apple device of an employee of a Washington-based civil society group last week, Citizen Lab said it found the flaw had been used to infect the device with NSO's Pegasus spyware, it said in a statement. (Reporting by Zeba Siddiqui and Christopher Bing; Editing by Jamie Freed) ((zeba.siddiqui@tr.com; christopher.bing@tr.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Christopher Bing and Zeba Siddiqui Sept 7 - Researchers at digital watchdog group Citizen Lab said on Thursday they found spyware they linked to Israeli firm NSO that exploited a newly discovered flaw in Apple AAPL.O devices. While inspecting the Apple device of an employee of a Washington-based civil society group last week, Citizen Lab said it found the flaw had been used to infect the device with NSO's Pegasus spyware, it said in a statement. Apple issued new updates on its devices after investigating the flaws reported by Citizen Lab.
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By Christopher Bing and Zeba Siddiqui Sept 7 - Researchers at digital watchdog group Citizen Lab said on Thursday they found spyware they linked to Israeli firm NSO that exploited a newly discovered flaw in Apple AAPL.O devices. "This shows that civil society is once again serving as the early warning system about really sophisticated attacks," said John Scott-Railton, senior researcher at Citizen Lab, which is based at the University of Toronto's Munk School of Global Affairs and Public Policy. Citizen Lab did not provide further details on the affected individual or the organization.
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13910.0
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2023-09-07 00:00:00 UTC
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Arm touts cloud computing expansion, royalties to IPO investors
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AAPL
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https://www.nasdaq.com/articles/arm-touts-cloud-computing-expansion-royalties-to-ipo-investors
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nan
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nan
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By Echo Wang and Svea Herbst-Bayliss
NEW YORK, Sept 7 (Reuters) - SoftBank Group Corp's 9984.T Arm Holdings Plc on Thursday told potential investors in its roughly $5 billion initial public offering that cloud computing expansion and royalty revenue represented major growth areas for the chip designer.
In a gathering of more than 100 investors at one of New York's most luxurious hotels, Arm Chief Executive Rene Haas and his management team gave details on the company's prospects beyond the mobile phone market, of which it already commands a 99% share, people who were in attendance said.
Weak mobile demand during a global economic slowdown has causedArm's revenue to stagnate. Overall sales totaled $2.68 billion in the 12 months to the end of March, compared to $2.7 billion in the prior period.
Arm is seeking a valuation on a fully diluted basis of $50 billion to $54.5 billion, less than the $64 billion SoftBank assigned to it in a transaction last month with the $100 billion Vision Fund that it manages.
While some investors and bankers that Reuters spoke with after the presentation were upbeat, it remained unclear how strong the IPO's reception would be. Arm has already secured the participation of several customers, including Apple Inc AAPL.O, Nvidia Corp NVDA.O and Alphabet Inc GOOGL.O, as investors in the IPO. It is scheduled to close the books and price the offering on Sept. 13.
Arm told potential investors on Thursday that the cloud computing market, of which it has only a 10% share and therefore more room to expand, is expected to grow at an annual rate of 17% through 2025, partly thanks to advances in artificial intelligence. The automotive market, of which it commands 41%, is forecast to expand by 16%, compared with just 6% growth expected for the mobile market.
"They said that Apple use 100% Arm architecture (because of Arm's dominance in smart phones). The future growth driver is to expand market share in the Windows PC market," said Ryuta Makino, a research analyst at Gabelli Funds.
Arm also told investors its royalty fees, which account for most of its revenue, were accumulating since it started collecting them in the early 1990s. Royalty revenue came in at $1.68 billion at the latest fiscal year, up from $1.56 billion from a year before.
An area of scrutiny for investors has been Arm's exposure to China, given geopolitical tensions with the United States that have led to a race to secure chip supplies. Sales in China contributed 24.5% of Arm's $2.68 billion revenue in fiscal 2023.
Virtually all of that revenue comes from Arm China, an independent entity with exclusive rights to distribute Arm's technology in the country and is Arm's largest customer. ARM China has a history of late payments and presents "significant risks" to Arm's business, the company's IPO filing said.
Arm said in the filing that it was owed $386.9 million by Arm China as of the end of March. Arm's chief financial officer has told investors during the marketing of the IPO that the company was not concerned about being paid back.
(Reporting by Echo Wang and Svea Herbst-Bayliss in New York; Additional reporting by Max Cherney in San Francisco; Editing by Greg Roumeliotis and Richard Chang)
((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Arm has already secured the participation of several customers, including Apple Inc AAPL.O, Nvidia Corp NVDA.O and Alphabet Inc GOOGL.O, as investors in the IPO. By Echo Wang and Svea Herbst-Bayliss NEW YORK, Sept 7 (Reuters) - SoftBank Group Corp's 9984.T Arm Holdings Plc on Thursday told potential investors in its roughly $5 billion initial public offering that cloud computing expansion and royalty revenue represented major growth areas for the chip designer. In a gathering of more than 100 investors at one of New York's most luxurious hotels, Arm Chief Executive Rene Haas and his management team gave details on the company's prospects beyond the mobile phone market, of which it already commands a 99% share, people who were in attendance said.
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Arm has already secured the participation of several customers, including Apple Inc AAPL.O, Nvidia Corp NVDA.O and Alphabet Inc GOOGL.O, as investors in the IPO. By Echo Wang and Svea Herbst-Bayliss NEW YORK, Sept 7 (Reuters) - SoftBank Group Corp's 9984.T Arm Holdings Plc on Thursday told potential investors in its roughly $5 billion initial public offering that cloud computing expansion and royalty revenue represented major growth areas for the chip designer. Arm told potential investors on Thursday that the cloud computing market, of which it has only a 10% share and therefore more room to expand, is expected to grow at an annual rate of 17% through 2025, partly thanks to advances in artificial intelligence.
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Arm has already secured the participation of several customers, including Apple Inc AAPL.O, Nvidia Corp NVDA.O and Alphabet Inc GOOGL.O, as investors in the IPO. By Echo Wang and Svea Herbst-Bayliss NEW YORK, Sept 7 (Reuters) - SoftBank Group Corp's 9984.T Arm Holdings Plc on Thursday told potential investors in its roughly $5 billion initial public offering that cloud computing expansion and royalty revenue represented major growth areas for the chip designer. Arm is seeking a valuation on a fully diluted basis of $50 billion to $54.5 billion, less than the $64 billion SoftBank assigned to it in a transaction last month with the $100 billion Vision Fund that it manages.
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Arm has already secured the participation of several customers, including Apple Inc AAPL.O, Nvidia Corp NVDA.O and Alphabet Inc GOOGL.O, as investors in the IPO. Overall sales totaled $2.68 billion in the 12 months to the end of March, compared to $2.7 billion in the prior period. Sales in China contributed 24.5% of Arm's $2.68 billion revenue in fiscal 2023.
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13911.0
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2023-09-07 00:00:00 UTC
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5 Reasons to Buy Microsoft Stock Right Now
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AAPL
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https://www.nasdaq.com/articles/5-reasons-to-buy-microsoft-stock-right-now
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nan
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nan
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Fueled by an artificial intelligence (AI)-driven rally, tech stocks have been leading the market higher so far in 2023. After coming under heavy pressure in 2022 amid the Fed's relentless rate hikes, the tech-centric Nasdaq 100 Index ($IUXX) has now recovered to gain more than 39.1% on a YTD basis. By comparison, the more broad-based S&P 500 Index ($SPX) is 15.9% higher on the year.
Notably, one of the outperformers in 2023 has been the long-time tech titan Microsoft (MSFT). Shares of the software giant are up 39.3% this year, outpacing the S&P 500 by a wide margin (and edging out the Nasdaq 100 ever so slightly as of this writing, too).
www.barchart.com
However, with MSFT joining in a wider Nasdaq pullback since mid-July, there's an opportunity to buy the dip right now for investors who are looking to build positions in this outperformer for the long term. Whether it's the growth prospects for AI or the consistency of its dividend yield, here are five reasons why Microsoft is worthy of a place in your portfolio now.
1. Consistent Earnings Beats
Microsoft's EPS has beaten the Street estimates over the recent quarters quite regularly. Over the past five quarters, its EPS has surpassed expectations on four occasions. In fact, the one instance where the earnings did not meet expectations was in July 2022, when various macroeconomic pressures converged to weigh on the company's bottom line. However, it should be noted that even on that occasion, MSFT rallied after earnings on the strength of its forward guidance.
In its latest quarterly results, Microsoft's EPS topped estimates by 5.5%, with solid revenue growth in the company's key revenue segments of cloud (+15.3% YoY) and productivity and business processes (+10.2% YoY).
2. AI Leadership
A key reason for the muted performance seen in Microsoft stock post its earnings has been the management's assertions that revenue growth from AI-led activities would witness a slowdown in the upcoming quarters. However, this remains a classic case of “missing the forest for the trees” as the company's AI-driven revenue generation capabilities have a number of drivers which evidently makes it one of the frontrunners in this rapidly growing space.
Firstly, Microsoft's investment in ChatGPT is expected to start yielding, as parent company OpenAI rapidly approaches $1 billion in annual sales. Moreover, Microsoft recently integrated ChatGPT onto its cloud platform for enterprise customers, with key partners like PwC, AT&T (T), and Moody's (MCO) set to benefit.
The company is also integrating AI into its tools in the “Productivity and Business Processes” segment, which made up almost a third of the company's revenue in the most recent quarter. Microsoft's Copilot, a generative AI-powered tool enabling users to give commands to the assistant in natural language, is expected to be added to Microsoft 365, which includes Microsoft's suite of Office apps, such as Word and Excel. The tech giant charges $30 as a monthly fee for Copilot from enterprise customers on top of the subscription fees for Microsoft 365, reflecting strong pricing power.
Copilot's capabilities should allow Microsoft to encourage developers to build apps that integrate with it seamlessly. Remember, Microsoft charges 30% on app sales through its Microsoft AppSource platform, making it another key revenue driver for the company.
3. Cloud Computing Strength
Microsoft is one of the leading players in the cloud computing space, along with Google (GOOGL) and Amazon (AMZN) AWS. In fact, these three behemoths have cornered about 66% of the global cloud market. Valued at $231.12 billion in 2023, the global cloud market is expected to reach a whopping $2.2 trillion by 2030, clocking a CAGR of 37% over the period.
Microsoft's strong capabilities in the cloud space, along with its leading market share, positions it well to benefit from the expected growth in the enterprise cloud market globally. In fact, along with enterprise software - a $1.2 trillion market, as of 2021 - Microsoft Azure is also poised to grab market share in the IT services ($1 trillion market) and communication services ($1.3 trillion market) segments as well.
4. Reliable Dividend Yield
Along with its impressive share price performance, Microsoft offers investors a dividend yield of 0.82%.
Compare this to some of its cash-hoarding peers like Amazon and Google, with whom Microsoft competes closely on AI and cloud computing; neither tech giant pays a regular dividend. And Microsoft's dividend yield is better than its fellow tech peer Apple (AAPL), which yields 0.51%.
Impressively, Microsoft has raised its dividend consistently over the past nine years, too.
5. Analysts Expect More Upside
Finally, analysts remain convinced about Microsoft's earnings growth prospects. The consensus is calling for earnings to improve 12.8% for the current quarter, and 11.1% for FY 2024.
www.barchart.com
Overall, analysts remain bullish on Microsoft stock, with a consensus “Strong Buy” rating and a mean target price of $383.49 - which indicates upside potential of about 15.7% from current levels. The Street-high target of $440 implies expected upside of nearly 33%.
Out of 35 analysts covering the stock, 29 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, 2 have a “Hold” rating, and just 1 has a “Strong Sell” rating.
www.barchart.com
Final Takeaway
All things considered, Microsoft's prospects look quite strong for continued outperformance. While competition is stiff in AI and the cloud - and macroeconomic challenges still remain - Microsoft's strong balance sheet, pricing power, and proven execution capabilities give it a strong footing and an operational edge. Consequently, the stock is a compelling bet for investors to buy on any weakness.
On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And Microsoft's dividend yield is better than its fellow tech peer Apple (AAPL), which yields 0.51%. AI Leadership A key reason for the muted performance seen in Microsoft stock post its earnings has been the management's assertions that revenue growth from AI-led activities would witness a slowdown in the upcoming quarters. However, this remains a classic case of “missing the forest for the trees” as the company's AI-driven revenue generation capabilities have a number of drivers which evidently makes it one of the frontrunners in this rapidly growing space.
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And Microsoft's dividend yield is better than its fellow tech peer Apple (AAPL), which yields 0.51%. In its latest quarterly results, Microsoft's EPS topped estimates by 5.5%, with solid revenue growth in the company's key revenue segments of cloud (+15.3% YoY) and productivity and business processes (+10.2% YoY). The tech giant charges $30 as a monthly fee for Copilot from enterprise customers on top of the subscription fees for Microsoft 365, reflecting strong pricing power.
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And Microsoft's dividend yield is better than its fellow tech peer Apple (AAPL), which yields 0.51%. Microsoft's Copilot, a generative AI-powered tool enabling users to give commands to the assistant in natural language, is expected to be added to Microsoft 365, which includes Microsoft's suite of Office apps, such as Word and Excel. Microsoft's strong capabilities in the cloud space, along with its leading market share, positions it well to benefit from the expected growth in the enterprise cloud market globally.
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And Microsoft's dividend yield is better than its fellow tech peer Apple (AAPL), which yields 0.51%. Remember, Microsoft charges 30% on app sales through its Microsoft AppSource platform, making it another key revenue driver for the company. Microsoft's strong capabilities in the cloud space, along with its leading market share, positions it well to benefit from the expected growth in the enterprise cloud market globally.
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13912.0
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2023-09-07 00:00:00 UTC
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Why Intel Rose Today Even as Chip Stocks Were Down
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AAPL
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https://www.nasdaq.com/articles/why-intel-rose-today-even-as-chip-stocks-were-down
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nan
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nan
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What happened
Shares of Intel (NASDAQ: INTC) were curiously on the rise today, up 3.2% in Thursday trading even as most other semiconductor stocks were down markedly on the day.
When U.S.-China tensions rise, it can cause a broad sell-off in most semiconductor stocks. That was also true today, as it was reported yesterday China may ban government agencies from using iPhones. That not only caused a sell-off in Apple (NASDAQ: AAPL) but also in a host of its suppliers and semiconductor equipment stocks as well.
The sell-off may or may not have merit, with some analysts calling the worries "overblown." Still, when U.S.-China tensions mount, it is often Intel that actually sees gains as others lose.
Even though Intel has some China exposure by way of its PC and data center processors, Intel is also building out a U.S.-based foundry ecosystem it hopes will rival Taiwan Semiconductor Manufacturing (NYSE: TSM). Given that an invasion of Taiwan would be disastrous for TSMC and its customers, there is a thought that Intel would be a huge beneficiary, as chip designers might then pivot to Intel's foundries.
In addition, Intel also received its own positive analyst commentary today regarding that very foundry ecosystem it's building.
So what
At an industry conference at the end of August, Intel CEO Pat Gelsinger announced the company had received a large pre-payment for its foundry ecosystem. Specifically, the pre-payment was for 18A, the leading-edge 1.8nm fab Intel plans on bringing online at the end of 2024. That's also the fab in which Intel plans to produce chips that will regain process-node parity with, or even leadership over, TSMC.
Today, Citi analyst Christopher Danely noted that pre-payment likely came from a "whale," meaning an extremely large chipmaker that is likely a leader in its market.
That would be a promising vote of confidence in Intel's fledgling foundry and would play a key role in its turnaround. After all, leading chip designers such as Apple and Nvidia (NASDAQ: NVDA) would probably like an alternative foundry partner to manufacture their chips other than TSMC, which has the sole lead in its ability to produce chips on the current 5nm leading edge and the 3nm node that's just beginning this year. TSMC has raised prices over the past few years as well, taking advantage of that leadership.
And Intel would especially benefit if customers were to get nervous about the state of U.S.-China relations, which in the worst-case scenario could lead to an attempted invasion of Taiwan. While TSMC is building U.S. fabs at the moment, its most advanced fabs will still be in Taiwan going forward.
Now what
It is tough to make investment calls solely based on geopolitics, barring an extreme scenario such as an actual Taiwan invasion. However, that doesn't seem like it's happening anytime soon, so I would expect these noisy headlines to eventually subside.
More interesting actually is the state of Intel's turnaround efforts, which appear to be gaining traction in 2023. Gelsinger noted at that aforementioned conference that Intel's current quarter was tracking above the mid-point of guidance, perhaps signaling a bottom in the PC market. Moreover, Intel's roadmap to catch up to TSMC appears on track, and there is even small but rapidly growing interest in Intel's Max and Gaudi AI accelerators, which have the potential to carve out some share of the booming AI market.
If any one of those product segments achieves success, it's possible Intel's stock, which has lagged the chip sector for years, could begin to work again.
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*Stock Advisor returns as of September 5, 2023
Citigroup is an advertising partner of The Ascent, a Motley Fool company. Billy Duberstein has positions in Apple and Taiwan Semiconductor Manufacturing. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That not only caused a sell-off in Apple (NASDAQ: AAPL) but also in a host of its suppliers and semiconductor equipment stocks as well. What happened Shares of Intel (NASDAQ: INTC) were curiously on the rise today, up 3.2% in Thursday trading even as most other semiconductor stocks were down markedly on the day. So what At an industry conference at the end of August, Intel CEO Pat Gelsinger announced the company had received a large pre-payment for its foundry ecosystem.
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That not only caused a sell-off in Apple (NASDAQ: AAPL) but also in a host of its suppliers and semiconductor equipment stocks as well. So what At an industry conference at the end of August, Intel CEO Pat Gelsinger announced the company had received a large pre-payment for its foundry ecosystem. The Motley Fool has positions in and recommends Apple, Nvidia, and Taiwan Semiconductor Manufacturing.
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That not only caused a sell-off in Apple (NASDAQ: AAPL) but also in a host of its suppliers and semiconductor equipment stocks as well. Even though Intel has some China exposure by way of its PC and data center processors, Intel is also building out a U.S.-based foundry ecosystem it hopes will rival Taiwan Semiconductor Manufacturing (NYSE: TSM). Given that an invasion of Taiwan would be disastrous for TSMC and its customers, there is a thought that Intel would be a huge beneficiary, as chip designers might then pivot to Intel's foundries.
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That not only caused a sell-off in Apple (NASDAQ: AAPL) but also in a host of its suppliers and semiconductor equipment stocks as well. That's also the fab in which Intel plans to produce chips that will regain process-node parity with, or even leadership over, TSMC. See the 10 stocks *Stock Advisor returns as of September 5, 2023 Citigroup is an advertising partner of The Ascent, a Motley Fool company.
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13913.0
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2023-09-07 00:00:00 UTC
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GAM3S.GG Secures $2M to Develop Web3 Gaming Superapp
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AAPL
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https://www.nasdaq.com/articles/gam3s.gg-secures-%242m-to-develop-web3-gaming-superapp
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nan
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nan
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GAM3S.GG announced the closure of a $2 million seed round led by Mechanism Capital with the participation of major Web3 venture capitals and angel investors. The fresh capital will help the platform, formerly known as Polkastarter Gaming, to scale and grow the GAM3S.GG gaming superapp into the “IGN for Web3 gaming,” as claimed by its investors.
The influx of established gaming giants is bound to light up the Web3 gaming stage. Zynga announced its Web3 game Sugartown, while Ubisoft is looking to jump on the Web3 train with its PvP tactical RPG (role-playing game) title Champions Tactics: Grimoria Chronicles. As more players and projects are flocking into the Web3 space, the lack of quality content regarding Web3 gaming becomes more apparent.
Since accessibility is a key promise of Web3, bringing actual games and related content, such as news, guides, and other curated stories, side by side sounds like the next logical step. Web2 heavyweights like Apple (NASDAQ:AAPL) or Alphabet (NASDAQ:GOOGL) carried mobile gaming from a nascent industry to a massive ecosystem that generates over $90 billion annually by turning smartphone users into mobile gamers with their curated content on their respective mobile app stores.
“The gaming industry is at a crossroads,” said GAM3S.GG co-founder and CEO Omer Ghanem, adding, “While Web3 offers new exciting possibilities, the lack of quality content and a singular destination for all your Web3 gaming needs has left many gamers lost.”
Blockchain Gaming Meets Web3 Content
GAM3S.GG is a platform where direct access to over 200 games listed across 15 blockchain networks meets editorial content like news and game guides. Launched in November 2022, the platform onboarded over 60,000 users. The platform also hosted the first and the largest award show for Web3 games last December, called the GAM3 Awards, which received over 250,000 votes and was watched by 140,000 unique viewers in the live broadcast.
The team aims to use the funds from the seed round to bring in the next 100 million users to Web3 gaming by providing an all-in-one hub with GAM3S.GG superapp. This way, both newcomers and seasoned players can explore what’s going on in the Web3 space with news, guides, and other curated content from one simple screen.
Touching upon the urgency of a Web3 gaming hub, Ghanem stressed, “Traditional gaming has its IGN and Kotaku, yet the industry isn't ready for the change that blockchain-powered titles present, and if we wait for them to step in, we would lose potential early adopters and valuable progress — and that's why GAM3S.GG was born.”
A New Channel for Web3 Game Developers to Present Projects
The platform also provides a new channel for Web3 game developers to present their projects. Mechanism Capital Partner Ken addressed the challenges of building Web3 games, especially gaming hubs and aggregators. Ken stated, “Finding the win will require teams to take us past the feature sets we have been stuck with for years and the ability to understand incumbent playbooks and evolve them with aggressive experimentation.”
Aside from Mechanism Capital, GAM3S.GG scored backing from Polygon (MATIC-USD), Double Peak, ArkStream Capital, LD Capital, ROK Capital, Hyperithm, Snackclub, and many others for its seed round.
Shreyansh Singh, Head of Investments at Polygon, highlighted the value of platforms that offer curated content and guides. “We've worked closely with the [GAM3S.GG] team over the past 18 months, and investing in them isn't just about backing a platform; it's about championing a vision where Web3 gaming is accessible, quality games rise above the noise, and where gamers have a trusted compass in this new frontier,” Singh added.
To increase the accessibility of blockchain games, developers are working on adding new features. According to the GAM3S.GG team, user-centric features such as social logins, player-owned item management, progression rewards, and in-game progress tracking are coming to the superapp — besides the convenience of playing Web3 games available directly on the platform.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Web2 heavyweights like Apple (NASDAQ:AAPL) or Alphabet (NASDAQ:GOOGL) carried mobile gaming from a nascent industry to a massive ecosystem that generates over $90 billion annually by turning smartphone users into mobile gamers with their curated content on their respective mobile app stores. The team aims to use the funds from the seed round to bring in the next 100 million users to Web3 gaming by providing an all-in-one hub with GAM3S.GG superapp. This way, both newcomers and seasoned players can explore what’s going on in the Web3 space with news, guides, and other curated content from one simple screen.
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Web2 heavyweights like Apple (NASDAQ:AAPL) or Alphabet (NASDAQ:GOOGL) carried mobile gaming from a nascent industry to a massive ecosystem that generates over $90 billion annually by turning smartphone users into mobile gamers with their curated content on their respective mobile app stores. “The gaming industry is at a crossroads,” said GAM3S.GG co-founder and CEO Omer Ghanem, adding, “While Web3 offers new exciting possibilities, the lack of quality content and a singular destination for all your Web3 gaming needs has left many gamers lost.” Blockchain Gaming Meets Web3 Content GAM3S.GG is a platform where direct access to over 200 games listed across 15 blockchain networks meets editorial content like news and game guides. “We've worked closely with the [GAM3S.GG] team over the past 18 months, and investing in them isn't just about backing a platform; it's about championing a vision where Web3 gaming is accessible, quality games rise above the noise, and where gamers have a trusted compass in this new frontier,” Singh added.
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Web2 heavyweights like Apple (NASDAQ:AAPL) or Alphabet (NASDAQ:GOOGL) carried mobile gaming from a nascent industry to a massive ecosystem that generates over $90 billion annually by turning smartphone users into mobile gamers with their curated content on their respective mobile app stores. The fresh capital will help the platform, formerly known as Polkastarter Gaming, to scale and grow the GAM3S.GG gaming superapp into the “IGN for Web3 gaming,” as claimed by its investors. “The gaming industry is at a crossroads,” said GAM3S.GG co-founder and CEO Omer Ghanem, adding, “While Web3 offers new exciting possibilities, the lack of quality content and a singular destination for all your Web3 gaming needs has left many gamers lost.” Blockchain Gaming Meets Web3 Content GAM3S.GG is a platform where direct access to over 200 games listed across 15 blockchain networks meets editorial content like news and game guides.
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Web2 heavyweights like Apple (NASDAQ:AAPL) or Alphabet (NASDAQ:GOOGL) carried mobile gaming from a nascent industry to a massive ecosystem that generates over $90 billion annually by turning smartphone users into mobile gamers with their curated content on their respective mobile app stores. GAM3S.GG announced the closure of a $2 million seed round led by Mechanism Capital with the participation of major Web3 venture capitals and angel investors. “The gaming industry is at a crossroads,” said GAM3S.GG co-founder and CEO Omer Ghanem, adding, “While Web3 offers new exciting possibilities, the lack of quality content and a singular destination for all your Web3 gaming needs has left many gamers lost.” Blockchain Gaming Meets Web3 Content GAM3S.GG is a platform where direct access to over 200 games listed across 15 blockchain networks meets editorial content like news and game guides.
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13914.0
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2023-09-07 00:00:00 UTC
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3 Growth Stocks Likely to See a Late Summer Rally
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AAPL
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https://www.nasdaq.com/articles/3-growth-stocks-likely-to-see-a-late-summer-rally
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Stocks fall into two primary categories: value and growth.
Value stocks represent established firms with stable finances, while growth stocks are typically dynamic, youthful, and disruptive companies. Unlike value stocks, growth stocks reinvest profits to fuel rapid expansion instead of paying dividends or buying back shares. For long-term investors, the upside can typically be higher with companies that produce higher-than-market-average growth rates.
Accordingly, the race has been on to find and invest in the best growth stocks for the long-term. This list contains three of the top performers over the past decade. For those betting on a late-summer rally, these three companies are likely to participate in such a surge. At least they will if their historical track records translate into continued investor interest.
Let’s dive into the reasons these three growth stocks are worth buying right now.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) is the world’s largest company, and for good reason. A core holding of most institutional investors (and a significant holding for anyone with a passive index fund), Apple remains a key cornerstone of the overall market. To a large degree, Apple’s performance usually dictates the market’s performance.
Thus, it should be no surprise to see world-class investors like Warren Buffett continue to hold onto significant exposure to Apple. The technology giant had a thrilling summer, briefly exceeding a $3 trillion in market cap before retreating in August. Apple, despite differing views on share repurchases, is a core portfolio pillar backed by substantial free cash flow ($101 billion, 26% of revenue) as of June 30.
Despite Apple’s recent disappointing earnings, robust product demand and upcoming releases drive stock appreciation. A pullback presents a buying opportunity, and that’s been proven time and again historically with this company. The iPhone’s enduring popularity remains unmatched, and upcoming releases like the iPhone 15, contribute to Apple’s future growth. Historically, Apple has outperformed the S&P 500 between June earnings and September iPhone announcements.
It’s a growth stock to buy now for those looking to take advantage of recent dips.
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
Meta Platforms (NASDAQ:META) impressively rebounded, with its stock surging 129% this year. A pivot to AI and cost-cutting led to a stellar $32 billion quarterly revenue.
Formerly Facebook, META is the world’s largest social media platform, now exploring the Metaverse concept. Meta has invested in virtual reality through Oculus and Horizon, with a user base of over 3.9 billion, providing a unique advantage in developing its new social media venture.
The hedge fund holds 1% of its portfolio in META, valued at $154.3 million. META stock has gained 137% since January, a top Ray Dalio pick. With strong revenue growth, profitability, and investment in generative AI like Llama 2, Meta offers allure for AI stock enthusiasts.
Consider META over hyped alternatives.
Nvidia (NVDA)
Source: Shutterstock
Bearish arguments against Nvidia (NASDAQ:NVDA) stock persist, but the bullish case remains strong.
Despite a high forward earnings multiple (45.6-times), I think this valuation is justified by the company’s robust expected future growth. Earnings are projected to surge 56.4% next fiscal year and maintain double-digit growth afterward, making the company well-positioned to meet or exceed these forecasts.
Nvidia boasts exceptional returns: 221% year to date (YTD) and 556% in 5 years. Despite a P/E of 111, its 843.3% year-over-year (YOY) income growth and doubled revenue, plus strong guidance, suggest valuation will balance. Earlier concerns at a P/E of 250 aside, the current valuation and future growth prospects make it appealing.
Nvidia’s data center segment, contributing 76.3% of quarterly revenue at $10.3 billion, relies on high-demand A100 and H100 chips for AI applications. With NVDA stock up 231.9% YTD, it’s a top AI chip stock.
And that’s not going to change anytime soon.
On the date of publication, Chris MacDonald has a LONG position in AAPL, META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post 3 Growth Stocks Likely to See a Late Summer Rally appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s largest company, and for good reason. On the date of publication, Chris MacDonald has a LONG position in AAPL, META. Apple, despite differing views on share repurchases, is a core portfolio pillar backed by substantial free cash flow ($101 billion, 26% of revenue) as of June 30.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s largest company, and for good reason. On the date of publication, Chris MacDonald has a LONG position in AAPL, META. Meta Platforms (META) Source: Aleem Zahid Khan / Shutterstock.com Meta Platforms (NASDAQ:META) impressively rebounded, with its stock surging 129% this year.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s largest company, and for good reason. On the date of publication, Chris MacDonald has a LONG position in AAPL, META. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Stocks fall into two primary categories: value and growth.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is the world’s largest company, and for good reason. On the date of publication, Chris MacDonald has a LONG position in AAPL, META. Meta Platforms (META) Source: Aleem Zahid Khan / Shutterstock.com Meta Platforms (NASDAQ:META) impressively rebounded, with its stock surging 129% this year.
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13915.0
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2023-09-07 00:00:00 UTC
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US STOCKS-S&P, Nasdaq fall as Apple drags, jobless claims data fuels rate jitters
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-fall-as-apple-drags-jobless-claims-data-fuels-rate-jitters-3
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nan
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nan
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By Sinéad Carew and Shristi Achar A
Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday, with the biggest drag from Apple and a sell-off in chip stocks over concerns about China's iPhone curbs, while a fall in weekly U.S. jobless claims fed worries about interest rates and sticky inflation.
Shares in S&P heavyweight Apple Inc AAPL.O fell 2.9%, for its second straight day of losses on that China had widened curbs on iPhone use by state employees, requiring staff at some central government agencies to stop using their mobiles at work.
Bloomberg reported that China planned to broaden the iPhone ban to state firms and agencies.
The drag from Apple, its suppliers and companies with large China exposure pushed the S&P 500 technology sector .SPLRCT down 1.6%, making it the biggest percentage decliner among the benchmark's 11 major sectors.
A U.S. Labor Department report showed the number of Americans filing for unemployment claims fell to 216,000 for the week ended Sept. 2, hitting the lowest level since February. But investors worried this would help push the Federal Reserve to continue with tight monetary policy, pressuring stocks.
"The weekly claims was big news this morning, good news being construed as bad news and it's hard to ignore the news out of China" about Apple said Sahak Manuelian, managing director and head of equity trading at Wedbush Securities.
Due partly to the recent sharp rise in oil prices, Manuelian pointed to "some fretting among investors that inflation might start to pick up again, which isn't crazy."
Bets on the Fed to leave interest rates unchanged in September stood at 93%, yet the chances for another pause in the November meeting were at a much lower 53.5%, according to the CME Group's FedWatch Tool.
Minutes before the close, New York Fed President John Williams said it was an "open question" whether monetary policy is restrictive enough to bring the economy back into balance. "We’ve got policy in a good place, but we’re going to need to continue to be data dependent,” he said, pointing to upcoming data releases due before the Fed's September meeting.
The Dow Jones Industrial Average .DJI rose 57.54 points, or 0.17%, to 34,500.73, the S&P 500 .SPX lost 14.34 points, or 0.32%, to 4,451.14 and the Nasdaq Composite .IXIC dropped 123.64 points, or 0.89%, to 13,748.83.
The Dow outperformed the S&P and Nasdaq because Apple has a lower weighting in the cyclicals-heavy index, which is price-weighted compared with the market capitalization-weighted S&P 500 .SPX., where Apple is one of the biggest weights.
Defensive utilities .SPLRCU was the biggest gainer among S&P sectors, rising 1.3%, which Edward Jones' Fehr took as another sign of the market's risk-off mood.
The Philadelphia semiconductor index .SOX fell 1.98% while shares of Apple suppliers including Skyworks Solutions SWKS.O, Qualcomm QCOM.O and Qorvo QRVO.Oall fell more than 7%.
Rick Meckler, partner at Cherry Lane Investments said the news from China refocused investors on the idea "that the relationship between the U.S. and China is a big risk to current equity prices, particularly in technology."
Also denting sentiment about the world's second-largest economy, data showed China's exports and imports fell in August.
Shares of U.S.-listed Chinese firms PDD Holdings PDD.O, JD.com JD.O and Alibaba BABA.N fell more than 4% while and Baidu BIDU.O lost 3.4%.
Also helping to keep the Dow afloat was a 1% rise in McDonald's MCD.N shares after Wells Fargo upgraded the stock to "overweight".
Automation software firm UiPathPATH.Nrallied 11.5% on an upbeat annual revenue forecast.
Declining issues outnumbered advancing ones on the NYSE by a 1.80-to-1 ratio; on Nasdaq, a 2.03-to-1 ratio favored decliners.
The S&P 500 posted 13 new 52-week highs and 26 new lows; the Nasdaq Composite recorded 22 new highs and 268 new lows.
(Reporting by Sinéad Carew in New York, Shristi Achar A and Amruta Khandekar in Bengaluru; Additional reporting by Johann M Cherian; Editing by Vinay Dwivedi and David Gregorio)
((sinead.carew@thomsonreuters.com; +13322191897))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares in S&P heavyweight Apple Inc AAPL.O fell 2.9%, for its second straight day of losses on that China had widened curbs on iPhone use by state employees, requiring staff at some central government agencies to stop using their mobiles at work. By Sinéad Carew and Shristi Achar A Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday, with the biggest drag from Apple and a sell-off in chip stocks over concerns about China's iPhone curbs, while a fall in weekly U.S. jobless claims fed worries about interest rates and sticky inflation. Bets on the Fed to leave interest rates unchanged in September stood at 93%, yet the chances for another pause in the November meeting were at a much lower 53.5%, according to the CME Group's FedWatch Tool.
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Shares in S&P heavyweight Apple Inc AAPL.O fell 2.9%, for its second straight day of losses on that China had widened curbs on iPhone use by state employees, requiring staff at some central government agencies to stop using their mobiles at work. By Sinéad Carew and Shristi Achar A Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday, with the biggest drag from Apple and a sell-off in chip stocks over concerns about China's iPhone curbs, while a fall in weekly U.S. jobless claims fed worries about interest rates and sticky inflation. "The weekly claims was big news this morning, good news being construed as bad news and it's hard to ignore the news out of China" about Apple said Sahak Manuelian, managing director and head of equity trading at Wedbush Securities.
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Shares in S&P heavyweight Apple Inc AAPL.O fell 2.9%, for its second straight day of losses on that China had widened curbs on iPhone use by state employees, requiring staff at some central government agencies to stop using their mobiles at work. By Sinéad Carew and Shristi Achar A Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday, with the biggest drag from Apple and a sell-off in chip stocks over concerns about China's iPhone curbs, while a fall in weekly U.S. jobless claims fed worries about interest rates and sticky inflation. "The weekly claims was big news this morning, good news being construed as bad news and it's hard to ignore the news out of China" about Apple said Sahak Manuelian, managing director and head of equity trading at Wedbush Securities.
|
Shares in S&P heavyweight Apple Inc AAPL.O fell 2.9%, for its second straight day of losses on that China had widened curbs on iPhone use by state employees, requiring staff at some central government agencies to stop using their mobiles at work. By Sinéad Carew and Shristi Achar A Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday, with the biggest drag from Apple and a sell-off in chip stocks over concerns about China's iPhone curbs, while a fall in weekly U.S. jobless claims fed worries about interest rates and sticky inflation. "We’ve got policy in a good place, but we’re going to need to continue to be data dependent,” he said, pointing to upcoming data releases due before the Fed's September meeting.
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13916.0
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2023-09-07 00:00:00 UTC
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US STOCKS-S&P, Nasdaq fall as Apple drags, jobless claims data fuels rate jitters
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-fall-as-apple-drags-jobless-claims-data-fuels-rate-jitters-2
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nan
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nan
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By Sinéad Carew and Shristi Achar A
Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday, with the biggest drag from Apple and weakness in chip stocks over concerns about China's iPhone curbs, while a fall in weekly U.S. jobless claims fed worries about interest rates and sticky inflation.
Shares in S&P heavyweight Apple Inc AAPL.O fell for a second straight day on that China had widened curbs on iPhone use by state employees, requiring staff at some central government agencies to stop using their mobiles at work.
Bloomberg reported that China planned to broaden the iPhone ban to state firms and agencies.
The drag from Apple, its suppliers and companies with large China exposure pushed the S&P 500 technology sector .SPLRCT lower making it the biggest percentage decliner among the benchmark's 11 major sectors during the session.
A U.S. Labor Department report showed the number of Americans filing for unemployment claims fell to 216,000 for the week ended Sept. 2, hitting the lowest level since February. But investors worried this could encourage the Federal Reserve to continue with tight monetary policy, pressuring stocks.
"The weekly claims was big news this morning, good news being construed as bad news and it's hard to ignore the news out of China," about Apple said Sahak Manuelian, managing director and head of equity trading at Wedbush Securities.
Due partly to the recent sharp rise in oil prices, Manuelian pointed to "some fretting among investors that inflation might start to pick up again, which isn't crazy."
Bets on the Fed to leave interest rates unchanged in September stood at 93%, yet the chances for another pause in the November meeting were at a much lower 53.5%, according to the CME Group's FedWatch Tool.
"There is that very, very small eye of the needle with which the Fed can thread monetary policy that's sufficiently tight, but not so tight that it wrecks the economy. It's a small eye but, it's not completely closed," said said Craig Fehr, head of investment strategy at Edward Jones, who called Thursday's decline "a cautious defensive stance."
According to preliminary data, the S&P 500 .SPX lost 13.94 points, or 0.31%, to end at 4,451.54 points, while the Nasdaq Composite .IXIC lost 123.64 points, or 0.89%, to 13,748.83. The Dow Jones Industrial Average .DJI rose 60.44 points, or 0.18%, to 34,503.63.
The Dow was outperforming the S&P and Nasdaq because Apple ranks just 11th in the cyclicals-heavy index, which is price-weighted compared with the market capitalization-weighted S&P 500 .SPX., where Apple is one of the biggest weights.
Defensive utilities .SPLRCU was outperforming S&P sectors during the session, which Edward Jones' Fehr saw another sign of the market's risk-off mood on Thursday.
The Philadelphia semiconductor index .SOX fell while shares of Apple suppliers including Skyworks Solutions SWKS.O, Qualcomm QCOM.O and Qorvo QRVO.O were in the red all day.
Rick Meckler, partner at Cherry Lane Investments said the news from China refocused investors on the idea "that the relationship between the U.S. and China is a big risk to current equity prices, particularly in technology."
Also denting sentiment about the world's second-largest economy, data showed China's exports and imports fell in August.
Shares of U.S.-listed Chinese firms PDD Holdings PDD.O, JD.com JD.O, Alibaba BABA.N and Baidu BIDU.O also Fell.
Also keeping the Dow afloat was a rise in McDonald's MCD.N shares after Wells Fargo upgraded the stock to "overweight".
Automation software firm UiPathPATH.Nrallied on an upbeat annual revenue forecast.
(Reporting by Sinéad Carew in New York, Shristi Achar A and Amruta Khandekar in Bengaluru; Additional reporting by Johann M Cherian; Editing by Vinay Dwivedi and David Gregorio)
((sinead.carew@thomsonreuters.com; +13322191897))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Shares in S&P heavyweight Apple Inc AAPL.O fell for a second straight day on that China had widened curbs on iPhone use by state employees, requiring staff at some central government agencies to stop using their mobiles at work. By Sinéad Carew and Shristi Achar A Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday, with the biggest drag from Apple and weakness in chip stocks over concerns about China's iPhone curbs, while a fall in weekly U.S. jobless claims fed worries about interest rates and sticky inflation. Bets on the Fed to leave interest rates unchanged in September stood at 93%, yet the chances for another pause in the November meeting were at a much lower 53.5%, according to the CME Group's FedWatch Tool.
|
Shares in S&P heavyweight Apple Inc AAPL.O fell for a second straight day on that China had widened curbs on iPhone use by state employees, requiring staff at some central government agencies to stop using their mobiles at work. By Sinéad Carew and Shristi Achar A Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday, with the biggest drag from Apple and weakness in chip stocks over concerns about China's iPhone curbs, while a fall in weekly U.S. jobless claims fed worries about interest rates and sticky inflation. It's a small eye but, it's not completely closed," said said Craig Fehr, head of investment strategy at Edward Jones, who called Thursday's decline "a cautious defensive stance."
|
Shares in S&P heavyweight Apple Inc AAPL.O fell for a second straight day on that China had widened curbs on iPhone use by state employees, requiring staff at some central government agencies to stop using their mobiles at work. By Sinéad Carew and Shristi Achar A Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday, with the biggest drag from Apple and weakness in chip stocks over concerns about China's iPhone curbs, while a fall in weekly U.S. jobless claims fed worries about interest rates and sticky inflation. "The weekly claims was big news this morning, good news being construed as bad news and it's hard to ignore the news out of China," about Apple said Sahak Manuelian, managing director and head of equity trading at Wedbush Securities.
|
Shares in S&P heavyweight Apple Inc AAPL.O fell for a second straight day on that China had widened curbs on iPhone use by state employees, requiring staff at some central government agencies to stop using their mobiles at work. By Sinéad Carew and Shristi Achar A Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday, with the biggest drag from Apple and weakness in chip stocks over concerns about China's iPhone curbs, while a fall in weekly U.S. jobless claims fed worries about interest rates and sticky inflation. Defensive utilities .SPLRCU was outperforming S&P sectors during the session, which Edward Jones' Fehr saw another sign of the market's risk-off mood on Thursday.
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13917.0
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2023-09-07 00:00:00 UTC
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US STOCKS-S&P, Nasdaq fall as Apple drags, jobless claims data fuels rate jitters
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-fall-as-apple-drags-jobless-claims-data-fuels-rate-jitters-1
|
nan
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nan
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By Sinéad Carew and Shristi Achar A
Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday, with the biggest drag from Apple and weakness in chip stocks over concerns about China's iPhone curbs, while a fall in weekly U.S. jobless claims fed worries about interest rates and sticky inflation.
S&P heavyweight Apple AAPL.O was on track for its second straight day of losses, down 3.5%, after China widened curbs on iPhone use by state employees, requiring staff at some central government agencies to stop using their mobiles at work.
Bloomberg reported that China planned to broaden the iPhone ban to state firms and agencies.
The drag from Apple, its suppliers and companies with large China exposure pushed the S&P 500 technology sector .SPLRCT down 1.9%, making it the biggest percentage decliner among the benchmark's 11 major sectors.
A U.S. Labor Department report showed the number of Americans filing for unemployment claims fell to 216,000 for the week ended Sept. 2, hitting the lowest level since February.
Investors uncertain about the Federal Reserve's path for interest rates awaited inflation readings from August, due out in a week.
"Markets are stuck in between the softening economy (potentially) giving the Fed more flexibility and resilience in the economy, which keeps the Fed hamstrung," said Craig Fehr, head of investment strategy at Edward Jones.
"There is that very, very small eye of the needle with which the Fed can thread monetary policy that's sufficiently tight, but not so tight that it wrecks the economy. It's a small eye but, it's not completely closed," said Fehr, who called the market's decline "a cautious defensive stance" ahead of the next inflation data.
Bets on the Fed to leave interest rates unchanged in September stood at 93%, yet the chances for another pause in the November meeting were at a much lower 53.5%, according to the CME Group's FedWatch Tool.
The Dow Jones Industrial Average .DJI rose 44.13 points, or 0.13%, to 34,487.32, the S&P 500 .SPX lost 16.79 points, or 0.38%, to 4,448.69 and the Nasdaq Composite .IXIC dropped 138.79 points, or 1%, to 13,733.69.
The Dow was outperforming the S&P and Nasdaq because Apple ranks just 11th in the cyclicals-heavy index, which is price-weighted compared with the market capitalization-weighted S&P 500 .SPX., where Apple is one of the biggest weights.
Defensive utilities .SPLRCU was the biggest gainer among the S&P sectors, which Edward Jones' Fehr saw another sign of the market's risk-off mood on Thursday.
The Philadelphia semiconductor index .SOX was down 2% while shares of Apple suppliers including Skyworks Solutions SWKS.O, Qualcomm QCOM.O and Qorvo QRVO.O were all down more than 7%.
Rick Meckler, partner at Cherry Lane Investments said the news from China refocused investors on the idea "that the relationship between the U.S. and China is a big risk to current equity prices, particularly in technology."
Also denting sentiment, data showed China's exports and imports fell in August, with sagging overseas demand and weak consumer spending hitting businesses in the world's second-largest economy.
Shares of U.S.-listed Chinese firms also fell with PDD Holdings PDD.O off more than 5%, JD.com JD.O and Alibaba BABA.N down more than 4% and Baidu BIDU.O off over 3%.
Philadelphia Fed President Patrick Harker did not comment on the likely U.S. monetary policy path. Investors will monitor other Fed speaker comments due later, including policy voting member and New York Fed President John Williams.
Also keeping the Dow afloat was a 1% rise in McDonald's MCD.N after Wells Fargo upgraded the stock to "overweight".
Automation software firm UiPathPATH.N added 10.5% on an upbeat annual revenue forecast.
Declining issues outnumbered advancing ones on the NYSE by a 1.75-to-1 ratio; on Nasdaq, a 1.98-to-1 ratio favored decliners.
The S&P 500 posted 12 new 52-week highs and 26 new lows; the Nasdaq Composite recorded 17 new highs and 238 new lows.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Additional reporting by Johann M Cherian; Editing by Vinay Dwivedi and David Gregorio)
((Shristi.AcharA@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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S&P heavyweight Apple AAPL.O was on track for its second straight day of losses, down 3.5%, after China widened curbs on iPhone use by state employees, requiring staff at some central government agencies to stop using their mobiles at work. By Sinéad Carew and Shristi Achar A Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday, with the biggest drag from Apple and weakness in chip stocks over concerns about China's iPhone curbs, while a fall in weekly U.S. jobless claims fed worries about interest rates and sticky inflation. Also denting sentiment, data showed China's exports and imports fell in August, with sagging overseas demand and weak consumer spending hitting businesses in the world's second-largest economy.
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S&P heavyweight Apple AAPL.O was on track for its second straight day of losses, down 3.5%, after China widened curbs on iPhone use by state employees, requiring staff at some central government agencies to stop using their mobiles at work. By Sinéad Carew and Shristi Achar A Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday, with the biggest drag from Apple and weakness in chip stocks over concerns about China's iPhone curbs, while a fall in weekly U.S. jobless claims fed worries about interest rates and sticky inflation. Investors uncertain about the Federal Reserve's path for interest rates awaited inflation readings from August, due out in a week.
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S&P heavyweight Apple AAPL.O was on track for its second straight day of losses, down 3.5%, after China widened curbs on iPhone use by state employees, requiring staff at some central government agencies to stop using their mobiles at work. By Sinéad Carew and Shristi Achar A Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday, with the biggest drag from Apple and weakness in chip stocks over concerns about China's iPhone curbs, while a fall in weekly U.S. jobless claims fed worries about interest rates and sticky inflation. "Markets are stuck in between the softening economy (potentially) giving the Fed more flexibility and resilience in the economy, which keeps the Fed hamstrung," said Craig Fehr, head of investment strategy at Edward Jones.
|
S&P heavyweight Apple AAPL.O was on track for its second straight day of losses, down 3.5%, after China widened curbs on iPhone use by state employees, requiring staff at some central government agencies to stop using their mobiles at work. Investors uncertain about the Federal Reserve's path for interest rates awaited inflation readings from August, due out in a week. "There is that very, very small eye of the needle with which the Fed can thread monetary policy that's sufficiently tight, but not so tight that it wrecks the economy.
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13918.0
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2023-09-07 00:00:00 UTC
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Avoid Concentration Risk With Quality Dividend ETF OUSM
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AAPL
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https://www.nasdaq.com/articles/avoid-concentration-risk-with-quality-dividend-etf-ousm
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nan
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nan
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Worried about a top-heavy S&P 500? You’re not alone – concentration risk is a key theme for investors and market watchers right now. The S&P 500, up 16.3% YTD, continues to offer a nice investment opportunity, but a significant over-reliance on just a few tech names creates some serious risk. Investors and advisors may want to consider limiting that risk by adding a quality dividend ETF like OUSM to their portfolio.
Just ten firms, led by Apple (AAPL), can claim responsibility for more than 80% of the S&P 500’s appreciation this year. Along with names like Eli Lilly (LLY) and Nvidia (NVDA), a blow to that tech-heavy group of ten would do significant damage to many portfolios. Rather than cut out the S&P 500, however, investors can instead look to diversify away from concentration risk with a quality dividend ETF.
The Concentration Risk Case for a Quality Dividend ETF
Dividends have grown in popularity as a factor of late in part thanks to this broader rotation. Dividends can provide a potent indicator of a company’s overall health, and useful information in an uncertain environment. As the lagging impact of rising rates starts to impact the overall economy, firms on uncertain footing may struggle. Refinancing, for example, could take its toll on ill-positioned companies. Those with dividends, in turn, may be healthier already and better placed to resist.
See more: "Inflation Cools, Eye Small-Cap Dividend ETF OUSM"
Investors looking outside the S&P 500 to diversify, then, may want to consider the ALPS O'Shares US Small-Cap Quality Dividend ETF (OUSM). OUSM tracks the O’Shares US Small-Cap Quality Dividend Index, investing in U.S. small-cap stocks weighted for quality, low volatility, high dividend yield, and dividend quality. It considers factors like EBITDA, trailing five-year weekly volatility, and dividend yield and quality in making those allocations.
Charging 48 basis points (bps), OUSM has returned 8.6% YTD and 13.7% over one year, outperforming its ETF Database Category and Factset Segment averages. The quality dividend ETF also offers a 2.1% annual dividend yield. Taken together, investors looking to diversify away from concentration risk may want to consider OUSM.
For more news, information, and analysis, visit the ETF Building Blocks Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Just ten firms, led by Apple (AAPL), can claim responsibility for more than 80% of the S&P 500’s appreciation this year. The S&P 500, up 16.3% YTD, continues to offer a nice investment opportunity, but a significant over-reliance on just a few tech names creates some serious risk. Along with names like Eli Lilly (LLY) and Nvidia (NVDA), a blow to that tech-heavy group of ten would do significant damage to many portfolios.
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Just ten firms, led by Apple (AAPL), can claim responsibility for more than 80% of the S&P 500’s appreciation this year. The Concentration Risk Case for a Quality Dividend ETF Dividends have grown in popularity as a factor of late in part thanks to this broader rotation. See more: "Inflation Cools, Eye Small-Cap Dividend ETF OUSM" Investors looking outside the S&P 500 to diversify, then, may want to consider the ALPS O'Shares US Small-Cap Quality Dividend ETF (OUSM).
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Just ten firms, led by Apple (AAPL), can claim responsibility for more than 80% of the S&P 500’s appreciation this year. The Concentration Risk Case for a Quality Dividend ETF Dividends have grown in popularity as a factor of late in part thanks to this broader rotation. See more: "Inflation Cools, Eye Small-Cap Dividend ETF OUSM" Investors looking outside the S&P 500 to diversify, then, may want to consider the ALPS O'Shares US Small-Cap Quality Dividend ETF (OUSM).
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Just ten firms, led by Apple (AAPL), can claim responsibility for more than 80% of the S&P 500’s appreciation this year. Investors and advisors may want to consider limiting that risk by adding a quality dividend ETF like OUSM to their portfolio. Rather than cut out the S&P 500, however, investors can instead look to diversify away from concentration risk with a quality dividend ETF.
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13919.0
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2023-09-07 00:00:00 UTC
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Apple tumbles, drags Wall Street lower as fears grow over China iPhone curbs
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AAPL
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https://www.nasdaq.com/articles/apple-tumbles-drags-wall-street-lower-as-fears-grow-over-china-iphone-curbs
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nan
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nan
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Sept 7 (Reuters) - Apple fell nearly 4% on Thursday and sparked a rout in U.S. equities after reports that China has widened curbs on iPhone use by government staff in one of the U.S. company's biggest markets.
The world's most valuable firm AAPL.O was set to lose more than $100 billion in market value, based on premarket share movements. It suffered its worst one-day drop in over a month on Wednesday.
Apple suppliers and companies with large China exposure including Broadcom AVGO.O, Qualcomm QCOM.O and Texas Instruments TXN.O fell between 1.2% and 2.8%. The iPhone maker's drop also pulled down the three main U.S. stock indexes.
Reuters reported earlier in the day that Beijing told employees at some central government agencies in recent weeks to stop using their Apple mobiles at work.
The reported move deepened fears about the financial toll from rising tensions between Washington and Beijing.
The U.S. has in recent years restricted China's access to key technologies including cutting-edge chips, while Beijing has tried to reduce its reliance on American tech and curbed shipments from U.S. firms including planemaker Boeing BA.N.
Several Wall Street analysts said the curbs on the iPhone show that even a company with a good relationship with the Chinese government and large presence in the world's second-largest economy was not immune to rising Sino-U.S. tensions.
The moves by Beijing also come at a time when Apple is grappling with a decline in iPhone sales, with China being a bright spot in what was an otherwise disappointing quarterly earnings report last month.
"The restrictions have the potential to slow Apple's sales growth in China. This could provide an additional challenge for the company," said D.A Davidson analyst Tom Forte.
Some analysts have also warned of a potential sales hit due to Huawei's new Mate 60 Pro smartphone, which is powered by an advanced chip made by Chinese contract chipmaker SMIC 0981.HK and marks a breakthrough for the duo hit by U.S. sanctions.
The sanctions had hammered Huawei's sales in its home country and allowed Apple to take some market share from the national favourite.
"If Huawei has the capability to supply and scale its home-grown Kirin 9000S (chips), we see the Mate series phone as an opportunity for Huawei to increase its shipments and regain its market share," analysts at Bofa Global Research said.
Apple could, however, see a demand boost after an event next week where it is expected to unveil its iPhone 15 line-up, as well as new smartwatches.
(Reporting by Aditya Soni in Bengaluru; Additional reporting by Jaspreet Singh; Editing by Shounak Dasgupta)
((Aditya.Soni@thomsonreuters.com; +91 80 6749 1130))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The world's most valuable firm AAPL.O was set to lose more than $100 billion in market value, based on premarket share movements. Sept 7 (Reuters) - Apple fell nearly 4% on Thursday and sparked a rout in U.S. equities after reports that China has widened curbs on iPhone use by government staff in one of the U.S. company's biggest markets. Reuters reported earlier in the day that Beijing told employees at some central government agencies in recent weeks to stop using their Apple mobiles at work.
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The world's most valuable firm AAPL.O was set to lose more than $100 billion in market value, based on premarket share movements. Sept 7 (Reuters) - Apple fell nearly 4% on Thursday and sparked a rout in U.S. equities after reports that China has widened curbs on iPhone use by government staff in one of the U.S. company's biggest markets. The U.S. has in recent years restricted China's access to key technologies including cutting-edge chips, while Beijing has tried to reduce its reliance on American tech and curbed shipments from U.S. firms including planemaker Boeing BA.N.
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The world's most valuable firm AAPL.O was set to lose more than $100 billion in market value, based on premarket share movements. Sept 7 (Reuters) - Apple fell nearly 4% on Thursday and sparked a rout in U.S. equities after reports that China has widened curbs on iPhone use by government staff in one of the U.S. company's biggest markets. Several Wall Street analysts said the curbs on the iPhone show that even a company with a good relationship with the Chinese government and large presence in the world's second-largest economy was not immune to rising Sino-U.S. tensions.
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The world's most valuable firm AAPL.O was set to lose more than $100 billion in market value, based on premarket share movements. Sept 7 (Reuters) - Apple fell nearly 4% on Thursday and sparked a rout in U.S. equities after reports that China has widened curbs on iPhone use by government staff in one of the U.S. company's biggest markets. "The restrictions have the potential to slow Apple's sales growth in China.
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13920.0
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2023-09-07 00:00:00 UTC
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US STOCKS-Wall St eyes lower open on inflation concerns, Fed speakers in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-lower-open-on-inflation-concerns-fed-speakers-in-focus
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nan
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nan
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By Shristi Achar A and Amruta Khandekar
Sept 7 (Reuters) - Wall Street's main indexes were set to open lower on Thursday as weaker-than-expected jobless claims data added to concerns about sticky inflation, while investors awaited comments from key Federal Reserve officials later in the day.
Denting sentiment further, Apple AAPL.O dropped 3.5% in premarket trading amid that China has widened curbs on the use of iPhones by state employees, requiring staff at some central government agencies to stop using their mobile phones at work.
Bloomberg on Thursday reported that China planned to broaden the iPhone ban to state firms and agencies.
Shares of Apple suppliers including Skyworks Solutions SWKS.O, Qualcomm QCOM.O and Qorvo QRVO.O also slid between 2% and 3.1%.
Stoking worries about interest rates staying elevated for longer, a Labor Department report showed the number of Americans filing for unemployment claims stood at 216,000 for the week ended Sept. 2, compared with estimates of 234,000 claims.
"The number came in a little bit better than expected, so we see a little bit of a negative reaction to the futures," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
"If you're invested in stocks you want the economy to slow but not collapse, so any strength in the economy is going to lead people to believe that the Fed is going to possibly raise interest rate in September."
Traders' bets on the Fed leaving interest rates unchanged in September stood at 91%, while their odds for a pause in the November meeting were at 51.6%, down from nearly 59% a week ago, according to the CME Group's FedWatch Tool.
Wall Street's three major stock indexes closed lower on Wednesday with the Nasdaq's 1% loss leading declines after stronger-than-expected services sector data fueled concerns that persistent inflation could lead to interest rates staying higher for longer.
Further denting sentiment, data showed China's exports and imports fell in August, with sagging overseas demand and weak consumer spending hitting businesses in the world's second-largest economy.
Shares of U.S.-listed Chinese firms including PDD Holdings PDD.O, JD.com JD.O, Baidu BIDU.O and Alibaba BABA.N fell between 3.2% and 4.2%.
Investors await comments from at least six Fed speakers, including policy voting members Philadelphia Fed President Patrick Harker, Vice Chair and New York Fed President John Williams, due to speak later in the day.
At 8:46 a.m. ET, Dow e-minis 1YMcv1 were down 85 points, or 0.25%, S&P 500 e-minis EScv1 were down 32.5 points, or 0.73%, and Nasdaq 100 e-minis NQcv1 were down 191.5 points, or 1.24%.
Automation software firm UiPathPATH.N added 1.4% premarket on an upbeat annual revenue forecast after it topped estimates for second-quarter results.
WestRockWRK.N jumped 6.0% after European rival Smurfit Kappa SKG.I disclosed it was in merger talks with the paper and packaging firm.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Additional reporting by Johann M Cherian Editing by Vinay Dwivedi)
((Shristi.AcharA@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Denting sentiment further, Apple AAPL.O dropped 3.5% in premarket trading amid that China has widened curbs on the use of iPhones by state employees, requiring staff at some central government agencies to stop using their mobile phones at work. By Shristi Achar A and Amruta Khandekar Sept 7 (Reuters) - Wall Street's main indexes were set to open lower on Thursday as weaker-than-expected jobless claims data added to concerns about sticky inflation, while investors awaited comments from key Federal Reserve officials later in the day. Further denting sentiment, data showed China's exports and imports fell in August, with sagging overseas demand and weak consumer spending hitting businesses in the world's second-largest economy.
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Denting sentiment further, Apple AAPL.O dropped 3.5% in premarket trading amid that China has widened curbs on the use of iPhones by state employees, requiring staff at some central government agencies to stop using their mobile phones at work. By Shristi Achar A and Amruta Khandekar Sept 7 (Reuters) - Wall Street's main indexes were set to open lower on Thursday as weaker-than-expected jobless claims data added to concerns about sticky inflation, while investors awaited comments from key Federal Reserve officials later in the day. Wall Street's three major stock indexes closed lower on Wednesday with the Nasdaq's 1% loss leading declines after stronger-than-expected services sector data fueled concerns that persistent inflation could lead to interest rates staying higher for longer.
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Denting sentiment further, Apple AAPL.O dropped 3.5% in premarket trading amid that China has widened curbs on the use of iPhones by state employees, requiring staff at some central government agencies to stop using their mobile phones at work. By Shristi Achar A and Amruta Khandekar Sept 7 (Reuters) - Wall Street's main indexes were set to open lower on Thursday as weaker-than-expected jobless claims data added to concerns about sticky inflation, while investors awaited comments from key Federal Reserve officials later in the day. Wall Street's three major stock indexes closed lower on Wednesday with the Nasdaq's 1% loss leading declines after stronger-than-expected services sector data fueled concerns that persistent inflation could lead to interest rates staying higher for longer.
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Denting sentiment further, Apple AAPL.O dropped 3.5% in premarket trading amid that China has widened curbs on the use of iPhones by state employees, requiring staff at some central government agencies to stop using their mobile phones at work. By Shristi Achar A and Amruta Khandekar Sept 7 (Reuters) - Wall Street's main indexes were set to open lower on Thursday as weaker-than-expected jobless claims data added to concerns about sticky inflation, while investors awaited comments from key Federal Reserve officials later in the day. Wall Street's three major stock indexes closed lower on Wednesday with the Nasdaq's 1% loss leading declines after stronger-than-expected services sector data fueled concerns that persistent inflation could lead to interest rates staying higher for longer.
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13921.0
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2023-09-07 00:00:00 UTC
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FACTBOX-U.S IPO market poised for strong finish in 2023 amid a flurry of listings
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AAPL
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https://www.nasdaq.com/articles/factbox-u.s-ipo-market-poised-for-strong-finish-in-2023-amid-a-flurry-of-listings
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nan
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nan
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By Chibuike Oguh
NEW YORK, Sept 7 (Reuters) - U.S. investors are awaiting a slew of initial public offerings (IPO) in coming months, hoping to ride the recent rally in equity markets.
The deals could revive demand for new listings, which have been in the doldrums for nearly two years amid rising interest rates, higher inflation, geopolitical tensions, and the Russia-Ukraine conflict.
Here are the highlights:
ARM HOLDINGS
British chip-designer Arm Holdings, owned by Japan's Softbank Group 9984.T, launched what is expected to be this year's biggest IPO that could raise about $5 billion and value the company at as much as $52 billion.
The company publicly filed its IPO with U.S. Securities and Exchange Commission (SEC) last month and kicked off its IPO roadshow this week in Baltimore, where influential asset manager T Rowe Price is headquartered.
Arm says it has already signed up many of its major clients as cornerstone investors, including Apple AAPL.O, Nvidia NVDA.O, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS.
Arm is considered to be a linchpin of the global semiconductor industry because its chip designs are widely used by most product manufacturers, including Nvidia, Intel, AMD, Samsung, and the Taiwan Semiconductor Manufacturing Company Limited 2330.TW.
Barclays BARC.L, Goldman Sachs GS.N, JPMorgan Chase JPM.N, and Mizuho Financial Group 8411.T are the lead underwriters for the offering.
Arm expects to begin trading on the Nasdaq in coming weeks under the symbol "ARM".
INSTACART
Grocery delivery service Instacart unveiled its filing for a long-awaited IPO last month, more than a year after it submitted papers with the U.S. Securities and Exchange Commission for the listing.
Instacart's business boomed during the COVID-19 pandemic owing to a surge in online orders. But the company's growth slowed as lockdown restrictions were eased, and it responded by cutting costs and laying off workers.
The company was last valued at $10 billion in December 2022, according to internal estimates reported by media company The Information -- far lower than the $39 billion valuation it secured following a 2020 funding round.
Norges Bank Investment Management, a division of Norges Bank, and entities affiliated with venture capital firms TCV, Sequoia Capital, D1 Capital Partners and Valiant Capital Management, have agreed to participate in the IPO as cornerstone investors, Instacart said.
Fidji Simo, a former Facebook executive, was hired as Instacart's CEO in 2021 as part of its preparations to go public. The company was founded in 2012.
Goldman Sachs and J.P.Morgan are the lead underwriters for the offering, Instacart said, adding that its shares would be listed on the Nasdaq under the symbol "CART."
KLAVIYO
Data and marketing automation firm Klaviyo disclosed its filing for its IPO in August, months after it confidentially submitted paperwork for the listing.
Klaviyo did not disclose the size, timetable or other details of the offering. But Reuters reported in May that the company was planning a listing as soon as this year, targeting to raise at least $750 million. It raised $320 million in its last funding round in 2021, which gave it a valuation of $9.15 billion.
Founded in 2012, Klaviyo's platform allows e-commerce companies to send personalized marketing emails and messages to potential customers. It is backed by Canadian e-commerce giant Shopify SHOP.TO and affiliates of investment firm Summit Partners.
Goldman Sachs, Morgan Stanley and Citigroup are lead underwriters on the offering, the company said in its filing. Its shares are expected to begin trading on the New York Stock Exchange under the ticker symbol "KVYO".
VNG
Vietnamese internet company VNG Corp VNZ.HNO has filed for a market debut on the Nasdaq, making it the first technology firm from the Southeast Asian country to list in the United States.
Founded in 2004, VNG is Vietnam's first unicorn, or startup valued at $1 billion or more. The Ho Chi Minh City-headquartered company's businesses include online games, payments, cloud services and Vietnam's most popular messaging app, Zalo.
VNG is aiming to raise as much as $150 million, targeting a trading debut by the end of September or October, Reuters reported. Some of its backers include Chinese social media and gaming giant Tencent 0700.HK and Singapore state investor Temasek TEM.UL.
Citigroup, Morgan Stanley, UBS, and Bank of America are underwriters of the IPO, according to the filing.
(Reporting by Chibuike Oguh in New York; editing by Lance Tupper, Michelle Price and Aurora Ellis)
((Chibuike.Oguh@thomsonreuters.com; +332-219-1834; Reuters Messaging: chibuike.oguh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Arm says it has already signed up many of its major clients as cornerstone investors, including Apple AAPL.O, Nvidia NVDA.O, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS. By Chibuike Oguh NEW YORK, Sept 7 (Reuters) - U.S. investors are awaiting a slew of initial public offerings (IPO) in coming months, hoping to ride the recent rally in equity markets. Vietnamese internet company VNG Corp VNZ.HNO has filed for a market debut on the Nasdaq, making it the first technology firm from the Southeast Asian country to list in the United States.
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Arm says it has already signed up many of its major clients as cornerstone investors, including Apple AAPL.O, Nvidia NVDA.O, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS. Arm expects to begin trading on the Nasdaq in coming weeks under the symbol "ARM". Norges Bank Investment Management, a division of Norges Bank, and entities affiliated with venture capital firms TCV, Sequoia Capital, D1 Capital Partners and Valiant Capital Management, have agreed to participate in the IPO as cornerstone investors, Instacart said.
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Arm says it has already signed up many of its major clients as cornerstone investors, including Apple AAPL.O, Nvidia NVDA.O, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS. The company publicly filed its IPO with U.S. Securities and Exchange Commission (SEC) last month and kicked off its IPO roadshow this week in Baltimore, where influential asset manager T Rowe Price is headquartered. The company was last valued at $10 billion in December 2022, according to internal estimates reported by media company The Information -- far lower than the $39 billion valuation it secured following a 2020 funding round.
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Arm says it has already signed up many of its major clients as cornerstone investors, including Apple AAPL.O, Nvidia NVDA.O, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS. Goldman Sachs and J.P.Morgan are the lead underwriters for the offering, Instacart said, adding that its shares would be listed on the Nasdaq under the symbol "CART." Data and marketing automation firm Klaviyo disclosed its filing for its IPO in August, months after it confidentially submitted paperwork for the listing.
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13922.0
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2023-09-07 00:00:00 UTC
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Apple tumbles, drags tech stocks lower as fears grow over China iPhone curbs
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AAPL
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https://www.nasdaq.com/articles/apple-tumbles-drags-tech-stocks-lower-as-fears-grow-over-china-iphone-curbs
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nan
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nan
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By Aditya Soni
Sept 7 (Reuters) - Apple fell nearly 4% on Thursday and sparked a selloff in tech stocks after reports that China has widened curbs on iPhone use by government staff in one of the U.S. company's biggest markets.
The world's most valuable firm AAPL.O was set to lose around $100 billion in market value after suffering its worst one-day drop in more than a month on Wednesday.
Apple suppliers and companies with large China exposure including Broadcom AVGO.O, Qualcomm QCOM.O and Texas Instruments TXN.Ofell between 1.4% and 4.7%. The iPhone maker's drop also weighed on the three main U.S. stock indexes.
Reuters reported earlier in the day that Beijing told employees at some central government agencies in recent weeks to stop using their Apple mobiles at work.
The reported move deepened fears about the financial toll from rising tensions between Washington and Beijing.
The U.S. has in recent years restricted China's access to key technologies including cutting-edge chips, while Beijing has tried to reduce its reliance on American tech and curbed shipments from U.S. firms including planemaker Boeing BA.N.
Several Wall Street analysts said the curbs on the iPhone show that even a company with a good relationship with the Chinese government and large presence in the world's second-largest economy was not immune to rising Sino-U.S. tensions.
The moves by Beijing also come at a time when Apple is grappling with a decline in iPhone sales, with China being a bright spot in what was an otherwise disappointing quarterly earnings report last month.
"The restrictions have the potential to slow Apple's sales growth in China. This could provide an additional challenge for the company," said D.A Davidson analyst Tom Forte.
Some analysts have also warned of a potential sales hit due to Huawei's new Mate 60 Pro smartphone, which is powered by an advanced chip made by Chinese contract chipmaker SMIC 0981.HK and marks a breakthrough for the duo hit by U.S. sanctions.
The sanctions had hammered Huawei's sales in its home country and allowed Apple to take some market share from the national favourite.
"If Huawei has the capability to supply and scale its home-grown Kirin 9000S (chips), we see the Mate series phone as an opportunity for Huawei to increase its shipments and regain its market share," analysts at Bofa Global Research said.
Apple could, however, see a demand boost after an event next week where it is expected to unveil its iPhone 15 line-up, as well as new smartwatches.
(Reporting by Aditya Soni in Bengaluru; Additional reporting by Jaspreet Singh; Editing by Shounak Dasgupta)
((Aditya.Soni@thomsonreuters.com; +91 80 6749 1130))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The world's most valuable firm AAPL.O was set to lose around $100 billion in market value after suffering its worst one-day drop in more than a month on Wednesday. By Aditya Soni Sept 7 (Reuters) - Apple fell nearly 4% on Thursday and sparked a selloff in tech stocks after reports that China has widened curbs on iPhone use by government staff in one of the U.S. company's biggest markets. Reuters reported earlier in the day that Beijing told employees at some central government agencies in recent weeks to stop using their Apple mobiles at work.
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The world's most valuable firm AAPL.O was set to lose around $100 billion in market value after suffering its worst one-day drop in more than a month on Wednesday. By Aditya Soni Sept 7 (Reuters) - Apple fell nearly 4% on Thursday and sparked a selloff in tech stocks after reports that China has widened curbs on iPhone use by government staff in one of the U.S. company's biggest markets. The U.S. has in recent years restricted China's access to key technologies including cutting-edge chips, while Beijing has tried to reduce its reliance on American tech and curbed shipments from U.S. firms including planemaker Boeing BA.N.
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The world's most valuable firm AAPL.O was set to lose around $100 billion in market value after suffering its worst one-day drop in more than a month on Wednesday. By Aditya Soni Sept 7 (Reuters) - Apple fell nearly 4% on Thursday and sparked a selloff in tech stocks after reports that China has widened curbs on iPhone use by government staff in one of the U.S. company's biggest markets. Several Wall Street analysts said the curbs on the iPhone show that even a company with a good relationship with the Chinese government and large presence in the world's second-largest economy was not immune to rising Sino-U.S. tensions.
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The world's most valuable firm AAPL.O was set to lose around $100 billion in market value after suffering its worst one-day drop in more than a month on Wednesday. By Aditya Soni Sept 7 (Reuters) - Apple fell nearly 4% on Thursday and sparked a selloff in tech stocks after reports that China has widened curbs on iPhone use by government staff in one of the U.S. company's biggest markets. The reported move deepened fears about the financial toll from rising tensions between Washington and Beijing.
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13923.0
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2023-09-07 00:00:00 UTC
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Markets Today: Stocks Drop on Apple Weakness and U.S. Labor Market Strength
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AAPL
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https://www.nasdaq.com/articles/markets-today%3A-stocks-drop-on-apple-weakness-and-u.s.-labor-market-strength
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nan
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nan
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Morning Markets
September E-Mini S&P 500 futures (ESU23) this morning are down -0.67%, and Sep Nasdaq 100 E-Mini futures (NQU23) are down -1.20%, both at 1-week lows.
Stock indexes this morning are moderately lower. Apple is down more than -2% in pre-market trading to lead technology stocks lower on a report from the Wall Street Journal that said China plans to expand a ban on the use of iPhones to government-backed agencies and state companies.
Stock index futures extended their losses as bond yields rose after weekly initial unemployment claims unexpectedly fell to a 7-month low, a sign of strength in the labor market that may prompt the Fed to keep interest rates higher for longer.
U.S. weekly initial unemployment claims unexpectedly fell -13,000 to a 7-month low of 216,000, showing a stronger labor market than expectations of an increase to 233,000. Weekly continuing claims fell -40,000 to 1.679 million, showing a stronger labor market than expectations of 1.719 million.
U.S. Q2 nonfarm productivity was revised lower to +3.5% from the initially reported +3.7%, stronger than expectations of +3.4%. Also, Q2 unit labor costs were revised higher to +2.2% from the initially reported +1.6%, stronger than expectations of +1.9%.
The markets are discounting the odds at 10% for a +25 bp rate hike at the September 20 FOMC meeting and 55% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields are mixed. The 10-year T-note yield climbed to a 2-week high of 4.304% and is up +0.8 bp at 4.288%. The 10-year German bund yield is down -1.8 bp at 2.636%. The 10-year UK gilt yield is down -4.8 bp at 4.486%.
Overseas stock markets are lower. The Euro Stoxx 50 is down -0.43%. China’s Shanghai Composite Index closed down -1.13%. Japan’s Nikkei Stock Index closed down -0.75%.
The Euro Stoxx 50 today fell to a 2-1/2 week low and is moderately lower. Economic concerns are weighing on European stocks after today’s weaker-than-expected German July industrial production report and a downward revision to Eurozone Q2 GDP. A decline in European government bond yields fueled gains in interest-rate sensitive stocks, including utility and construction companies, and limited losses in the overall market.
German July industrial production fell -0.8% m/m, weaker than expectations of -0.4% y/y.
Eurozone Q2 GDP was revised lower to +0.1% q/q and +0.5% y/y from the previously reported +0.3% q/q and +0.6% y/y.
China’s Shanghai Composite Index closed moderately lower. Chinese stocks retreated, and the yuan tumbled to a 15-year low against the dollar on pessimism over China’s economic outlook. Weakness in Chinese chipmakers led the overall market lower after a U.S. lawmaker said Semiconductor Manufacturing International (SMIC), China’s top chipmaker, may have violated U.S. sanctions by supplying components to Huawei Technologies. Also, property stocks declined on concerns that the limited stimulus measures proposed by the government will not be enough to spark a turnaround in the sector.
Chinese trade news was slightly better than expected. China Aug exports fell -8.8% y/y, a smaller decline than expectations of -9.0% y/y. Also, Aug imports fell -7.3% y/y, a smaller decline than expectations of -9.0% y/y.
Japan’s Nikkei Stock Index today fell back from a 5-week high and closed moderately lower. Japanese suppliers to Apple retreated today to lead the overall market lower after the Wall Street Journal reported that China plans to expand a ban on the use of iPhones in sensitive departments to government-backed agencies and state companies. Japanese stocks were also weighed down on negative carryover from Wednesday’s fall in U.S. stocks after stronger-than-expected economic news on the U.S. service sector bolstered concerns the Fed would keep interest rates higher for longer.
The Japan July leading index CI fell -1.2 to a 2-3/4 year low of 107.6, weaker than expectations of 107.8.
Pre-Market U.S. Stock Movers
Apple (AAPL) is down more than -2% in pre-market trading, adding to Wednesday’s -3% drop, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies.
Nvidia (NVDA) dropped more than -2% in pre-market trading, adding to Wednesday’s -2% fall after Research Affiliates said the stock is “a textbook story of a Big Market Delusion,” and with shares trading around 110 times earnings, the stock is priced beyond perfection.
Verint Systems (VRNT) plunged more than -15% in pre-market trading after reporting Q2 adjusted revenue of $210.4 million, weaker than the consensus of $226.6 million, and cutting its full-year adjusted revenue forecast to $910 million from a previous estimate of $935 million, below the consensus of $933.6 million.
C3.ai (AI) sank more than -9% in pre-market trading, saying it expects its fiscal-year adjusted loss will be as much as -$100 million, wider than a previous estimate of -$75 million, and said profitability would take longer than expected.
ChargePoint Holdings (CHPT) tumbled more than -8% in pre-market trading after reporting Q2 revenue of $150.5 million, weaker than the consensus of $153.1 million.
Dave & Buster’s Entertainment (PLAY) dropped more than -5% in pre-market trading after reporting Q2 EPS of 60 cents, well below the consensus of 94 cents.
Dell Technologies (DELL) fell more than -3% in pre-market trading after Barclays downgraded the stock to underweight from equal weight.
UiPath (PATH) climbed more than +4% in pre-market trading after reporting Q2 total revenue of $287.3 million, better than the consensus of $282.3 million, and sees 2024 revenue of $1.27 billion-$1.28 billion, stronger than the consensus of $1.27 billion.
McDonald’s (MCD) gained more than +1% in pre-market trading after Wells Fargo Securities upgraded the stock to overweight from equal weight.
G-III Apparel Group Ltd (GIII) surged more than +14% in pre-market trading after reporting Q2 net sales of $659.8 million, well above the consensus of $592.2 million.
Moderna (MRNA) gained nearly +1% in pre-market trading after a company study said its updated Covid-19 vaccine helps protect people from a new, highly mutated strain of the virus.
Earnings Reports (9/7/2023)
ABM Industries Inc (ABM), Avid Bioservices Inc (CDMO), Braze Inc (BRZE), Concrete Pumping Holdings Inc (BBCP), Copart Inc (CPRT), Designer Brands Inc (DBI), DocuSign Inc (DOCU), G-III Apparel Group Ltd (GIII), Guidewire Software Inc (GWRE), John Wiley & Sons Inc (WLY), Korn Ferry (KFY), Limoneira Co (LMNR), Methode Electronics Inc (MEI), Planet Labs PBC (PL), RH (RH), Science Applications Internati (SAIC), Semtech Corp (SMTC), Smartsheet Inc (SMAR), Smith & Wesson Brands Inc (SWBI), Toro Co/The (TTC), Urban One Inc (UONEK), Zumiez Inc (ZUMZ).
More Stock Market News from Barchart
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AVAV vs. CWCO: Look to the Balance Sheet for Guidance
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Pre-Market U.S. Stock Movers Apple (AAPL) is down more than -2% in pre-market trading, adding to Wednesday’s -3% drop, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Stock index futures extended their losses as bond yields rose after weekly initial unemployment claims unexpectedly fell to a 7-month low, a sign of strength in the labor market that may prompt the Fed to keep interest rates higher for longer. Earnings Reports (9/7/2023) ABM Industries Inc (ABM), Avid Bioservices Inc (CDMO), Braze Inc (BRZE), Concrete Pumping Holdings Inc (BBCP), Copart Inc (CPRT), Designer Brands Inc (DBI), DocuSign Inc (DOCU), G-III Apparel Group Ltd (GIII), Guidewire Software Inc (GWRE), John Wiley & Sons Inc (WLY), Korn Ferry (KFY), Limoneira Co (LMNR), Methode Electronics Inc (MEI), Planet Labs PBC (PL), RH (RH), Science Applications Internati (SAIC), Semtech Corp (SMTC), Smartsheet Inc (SMAR), Smith & Wesson Brands Inc (SWBI), Toro Co/The (TTC), Urban One Inc (UONEK), Zumiez Inc (ZUMZ).
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Pre-Market U.S. Stock Movers Apple (AAPL) is down more than -2% in pre-market trading, adding to Wednesday’s -3% drop, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Apple is down more than -2% in pre-market trading to lead technology stocks lower on a report from the Wall Street Journal that said China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Economic concerns are weighing on European stocks after today’s weaker-than-expected German July industrial production report and a downward revision to Eurozone Q2 GDP.
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Pre-Market U.S. Stock Movers Apple (AAPL) is down more than -2% in pre-market trading, adding to Wednesday’s -3% drop, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Apple is down more than -2% in pre-market trading to lead technology stocks lower on a report from the Wall Street Journal that said China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Stock index futures extended their losses as bond yields rose after weekly initial unemployment claims unexpectedly fell to a 7-month low, a sign of strength in the labor market that may prompt the Fed to keep interest rates higher for longer.
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Pre-Market U.S. Stock Movers Apple (AAPL) is down more than -2% in pre-market trading, adding to Wednesday’s -3% drop, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Stock index futures extended their losses as bond yields rose after weekly initial unemployment claims unexpectedly fell to a 7-month low, a sign of strength in the labor market that may prompt the Fed to keep interest rates higher for longer. The Euro Stoxx 50 today fell to a 2-1/2 week low and is moderately lower.
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13924.0
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2023-09-07 00:00:00 UTC
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Should Motley Fool 100 Index ETF (TMFC) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-motley-fool-100-index-etf-tmfc-be-on-your-investing-radar-8
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Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Motley Fool 100 Index ETF (TMFC), a passively managed exchange traded fund launched on 01/30/2018.
The fund is sponsored by Motley Fool Asset Management. It has amassed assets over $544.55 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.50%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.20%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 42% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.94% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG).
The top 10 holdings account for about 59.38% of total assets under management.
Performance and Risk
TMFC seeks to match the performance of the MOTLEY FOOL 100 INDEX before fees and expenses. The Motley Fool 100 Index is an index of US stocks, recommended by The Motley Fool, LLC (TMF) analysts, either in the Motley Fool IQ analyst opinion database or TMF research publications. From this recommendation pool, the index chooses the 100 largest US companies by market cap and weights them according to market capitalization. The index undergoes quarterly reconstitution.
The ETF has gained about 35.35% so far this year and is up roughly 23.64% in the last one year (as of 09/07/2023). In the past 52-week period, it has traded between $29.82 and $42.28.
The ETF has a beta of 1.07 and standard deviation of 22.49% for the trailing three-year period. With about 102 holdings, it effectively diversifies company-specific risk.
Alternatives
Motley Fool 100 Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, TMFC is a great option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $93.08 billion in assets, Invesco QQQ has $204.95 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Motley Fool 100 Index ETF (TMFC): ETF Research Reports
Alphabet Inc. (GOOG) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.94% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). Click to get this free report Motley Fool 100 Index ETF (TMFC): ETF Research Reports Alphabet Inc. (GOOG) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $544.55 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Motley Fool 100 Index ETF (TMFC): ETF Research Reports Alphabet Inc. (GOOG) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.94% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). You should consider the Motley Fool 100 Index ETF (TMFC), a passively managed exchange traded fund launched on 01/30/2018.
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Click to get this free report Motley Fool 100 Index ETF (TMFC): ETF Research Reports Alphabet Inc. (GOOG) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.94% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). Alternatives Motley Fool 100 Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Click to get this free report Motley Fool 100 Index ETF (TMFC): ETF Research Reports Alphabet Inc. (GOOG) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.94% of total assets, followed by Microsoft Corp (MSFT) and Alphabet Inc (GOOG). You should consider the Motley Fool 100 Index ETF (TMFC), a passively managed exchange traded fund launched on 01/30/2018.
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13925.0
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2023-09-07 00:00:00 UTC
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1 Spectacular Stock Poised to Join Microsoft, Alphabet, Amazon, Nvidia, and Apple in the $1 Trillion Club
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https://www.nasdaq.com/articles/1-spectacular-stock-poised-to-join-microsoft-alphabet-amazon-nvidia-and-apple-in-the-%241
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Fool.com contributor Parkev Tatevosian discusses a stock that he believes could soon join the coveted club.
*Stock prices used were the afternoon prices of Sept. 4, 2023. The video was published on Sept. 6, 2023.
10 stocks we like better than Meta Platforms
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of September 5, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Parkev Tatevosian, CFA has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fool.com contributor Parkev Tatevosian discusses a stock that he believes could soon join the coveted club. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Nvidia.
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See the 10 stocks *Stock Advisor returns as of September 5, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Nvidia.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of September 5, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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10 stocks we like better than Meta Platforms When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of September 5, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Parkev Tatevosian, CFA has positions in Alphabet and Apple.
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13926.0
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2023-09-07 00:00:00 UTC
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European stocks slip, dragged lower by chipmakers, miners
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https://www.nasdaq.com/articles/european-stocks-slip-dragged-lower-by-chipmakers-miners
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By Sruthi Shankar and Shashwat Chauhan
Sept 7 (Reuters) - European shares fell on Thursday as chipmakers slumped on reports that China has widened curbs on use of Apple iPhones by government staff, while miners tracked metal prices lower.
The pan-European STOXX 600 index .STOXX eased 0.1%, down for the seventh straight day, its worst string of losses since February 2018.
European semiconductor firms slid on reports that China has in recent weeks widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work.
Apple supplier STMicroelectronics STMPA.PA slumped 4.1%, while BE Semiconductor BESI.AS, Nordic Semiconductor NOD.OL, ASM International ASMI.AS, Infineon IFXGn.DE and ASML ASML.AS dropped between 2.6% and 6.3%.
The broader technology sector .SX8P lost 2.0%, logging its worst single-day performance in two weeks.
European miners .SX8P fell 2.0% as prices of most metals fell against a strong dollar and on demand concerns from top metals consumer China. MET/L
Data showed China's exports and imports fell in August, as the twin pressures of sagging overseas demand and weak consumer spending squeezed businesses in the world's second-largest economy.
"(Chinese) consumers have been far more cautious through this recovery phase than anticipated and clearly that's bad news," said Henk Potts, market strategist at Barclays Private Bank.
China-exposed luxury heavyweight LVMH LVMH.PA and insurer Prudential PRU.L shed 1.0% and 3.2%, respectively, weighing on the STOXX 600.
Meanwhile, defensive sectors such as utilities .SX6P and healthcare .SXDP, considered relatively immune to economic cycles, helped crimp losses, rising 1.4% and 1.2% respectively, as the economic outlook for Europe continued to darken.
Data showed German industrial production fell slightly more than expected in July. The Ifo Institute said the German economy will contract by 0.4% this year, confirming its previous forecasts published in June.
With economic activity declining across the 20 countries that use the euro and inflation easing, investors are betting the ECB will end its streak of nine consecutive rate increases on Sept. 14, even if it keeps the door open to further moves.
"We expect activity to continue to weaken through the second-half of this year and remain constrained through the course of 2024," added Potts.
Meanwhile, European statistics agency Eurostat revised its estimate that gross domestic product (GDP) in the euro zone grew 0.1% in the second quarter compared to the previous three months.
Year-on-year the GDP increased by 0.5%, Eurostat said, revising its earlier estimate of 0.6% growth.
Among individual stocks, Direct Line Insurance Group DLGD.L surged 15.8% after the British motor and home insurer forecast better operating profit in 2024.
(Reporting by Sruthi Shankar and Shashwat Chauhan in Bengaluru; Editing by Sherry Jacob-Phillips, Sonia Cheema and Alexander Smith)
((Shashwat.Chauhan@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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European semiconductor firms slid on reports that China has in recent weeks widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work. By Sruthi Shankar and Shashwat Chauhan Sept 7 (Reuters) - European shares fell on Thursday as chipmakers slumped on reports that China has widened curbs on use of Apple iPhones by government staff, while miners tracked metal prices lower. MET/L Data showed China's exports and imports fell in August, as the twin pressures of sagging overseas demand and weak consumer spending squeezed businesses in the world's second-largest economy.
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European semiconductor firms slid on reports that China has in recent weeks widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work. By Sruthi Shankar and Shashwat Chauhan Sept 7 (Reuters) - European shares fell on Thursday as chipmakers slumped on reports that China has widened curbs on use of Apple iPhones by government staff, while miners tracked metal prices lower. European miners .SX8P fell 2.0% as prices of most metals fell against a strong dollar and on demand concerns from top metals consumer China.
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European semiconductor firms slid on reports that China has in recent weeks widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work. By Sruthi Shankar and Shashwat Chauhan Sept 7 (Reuters) - European shares fell on Thursday as chipmakers slumped on reports that China has widened curbs on use of Apple iPhones by government staff, while miners tracked metal prices lower. European miners .SX8P fell 2.0% as prices of most metals fell against a strong dollar and on demand concerns from top metals consumer China.
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European semiconductor firms slid on reports that China has in recent weeks widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work. By Sruthi Shankar and Shashwat Chauhan Sept 7 (Reuters) - European shares fell on Thursday as chipmakers slumped on reports that China has widened curbs on use of Apple iPhones by government staff, while miners tracked metal prices lower. MET/L Data showed China's exports and imports fell in August, as the twin pressures of sagging overseas demand and weak consumer spending squeezed businesses in the world's second-largest economy.
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13927.0
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2023-09-07 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq futures slip on inflation concerns; Fed speakers in focus
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-futures-slip-on-inflation-concerns-fed-speakers-in-focus
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures: Dow up 0.12%, S&P down 0.20%, Nasdaq down 0.56%
Sept 7 (Reuters) - The S&P 500 and Nasdaq futures fell on Thursday over persistent inflationary pressures, while investors awaited comments from key Federal Reserve officials later in the day to gauge the U.S. interest rate path.
Wall Street's three major stock indexes closed lower on Wednesday with the Nasdaq's 1% loss leading declines after stronger-than-expected services sector data fueled concerns that sticky inflation could lead to interest rates staying higher for longer.
Apple AAPL.O dropped 2.8% in premarket trading on a report that China was seeking to broaden iPhone ban to state firms and agencies, a day after losses in its shares weighed down all three major indexes.
Further denting sentiment, data showed China's exports and imports fell in August, with sagging overseas demand and weak consumer spending hitting businesses in the world's second-largest economy.
Shares of U.S.-listed Chinese firms including PDD Holdings PDD.O, JD.com JD.O, Baidu BIDU.O and Alibaba BABA.N fell between 1.8% and 2.5%.
"The twin worries of China's slowdown and the prospect of higher interest rates in the U.S. are proving hard to shift, spreading fresh unease among investors," Susannah Streeter, head of money and markets at Hargreaves Lansdown said in a note.
"Lacklustre trading is set to be the order of the day given there is so little to pin more optimistic hopes on right now."
Investors await comments from at least six Fed speakers, including policy voting members Philadelphia Fed President Patrick Harker, Vice Chair and New York Fed President John Williams, due to speak later in the day.
Traders' bets on the Fed leaving interest rates unchanged in September stood at 93%, while their odds for a pause in the November meeting were at 53.5%, according to the CME FedWatch Tool.
At 5:30 a.m. ET, Dow e-minis 1YMcv1 were up 42 points, or 0.12%, S&P 500 e-minis EScv1 were down 9 points, or 0.2%, and Nasdaq 100 e-minis NQcv1 were down 87 points, or 0.56%.
Investors also await initial jobless claims numbers for the week ended Sept. 2, due at 8:30 a.m. ET, as they parse through economic data for any indications of slowing inflation.
Megacap stocks Tesla TSLA.O and Nvidia NVDA.O lost 1.5% and 2.0%, respectively, in premarket trading.
Automation software firm UiPathPATH.N added 4.6% on upbeat annual revenue forecast after it topped estimates for second-quarter results.
(Reporting by Shristi Achar A in Bengaluru Editing by Vinay Dwivedi)
((Shristi.AcharA@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O dropped 2.8% in premarket trading on a report that China was seeking to broaden iPhone ban to state firms and agencies, a day after losses in its shares weighed down all three major indexes. Further denting sentiment, data showed China's exports and imports fell in August, with sagging overseas demand and weak consumer spending hitting businesses in the world's second-largest economy. "The twin worries of China's slowdown and the prospect of higher interest rates in the U.S. are proving hard to shift, spreading fresh unease among investors," Susannah Streeter, head of money and markets at Hargreaves Lansdown said in a note.
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Apple AAPL.O dropped 2.8% in premarket trading on a report that China was seeking to broaden iPhone ban to state firms and agencies, a day after losses in its shares weighed down all three major indexes. Futures: Dow up 0.12%, S&P down 0.20%, Nasdaq down 0.56% Sept 7 (Reuters) - The S&P 500 and Nasdaq futures fell on Thursday over persistent inflationary pressures, while investors awaited comments from key Federal Reserve officials later in the day to gauge the U.S. interest rate path. Wall Street's three major stock indexes closed lower on Wednesday with the Nasdaq's 1% loss leading declines after stronger-than-expected services sector data fueled concerns that sticky inflation could lead to interest rates staying higher for longer.
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Apple AAPL.O dropped 2.8% in premarket trading on a report that China was seeking to broaden iPhone ban to state firms and agencies, a day after losses in its shares weighed down all three major indexes. Futures: Dow up 0.12%, S&P down 0.20%, Nasdaq down 0.56% Sept 7 (Reuters) - The S&P 500 and Nasdaq futures fell on Thursday over persistent inflationary pressures, while investors awaited comments from key Federal Reserve officials later in the day to gauge the U.S. interest rate path. Wall Street's three major stock indexes closed lower on Wednesday with the Nasdaq's 1% loss leading declines after stronger-than-expected services sector data fueled concerns that sticky inflation could lead to interest rates staying higher for longer.
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Apple AAPL.O dropped 2.8% in premarket trading on a report that China was seeking to broaden iPhone ban to state firms and agencies, a day after losses in its shares weighed down all three major indexes. Wall Street's three major stock indexes closed lower on Wednesday with the Nasdaq's 1% loss leading declines after stronger-than-expected services sector data fueled concerns that sticky inflation could lead to interest rates staying higher for longer. Investors await comments from at least six Fed speakers, including policy voting members Philadelphia Fed President Patrick Harker, Vice Chair and New York Fed President John Williams, due to speak later in the day.
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13928.0
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2023-09-07 00:00:00 UTC
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Reruns and reality fill out strike-struck fall TV season
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https://www.nasdaq.com/articles/reruns-and-reality-fill-out-strike-struck-fall-tv-season
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By Lisa Richwine
LOS ANGELES, Sept 7 (Reuters) - Broadcast television networks kick off the fall TV season this month with strike-depleted lineups featuring game shows, reruns and a 72-year-old widower looking for love in the reality TV dating pool.
ABC's "The Golden Bachelor," in which 22 women aged 60 to 75 compete for the affection of a Midwestern grandfather, is among the unscripted series peppering prime-time schedules.
Over on Fox, no-nonsense chef Gordon Ramsay will work double shifts with shows airing on two nights. CBS PARA.O extended summer reality favorite "Big Brother" so it could run into November.
Networks are trying to fill gaps created when Hollywood writers walked off the job in May, shutting down comedy and drama sets just as they were gearing up to film fall shows. Actors joined the picket lines in July for the first dual Hollywood work stoppage in 63 years.
The fall season has been a staple of American TV for decades, the time to roll out the best that broadcast TV has to offer.
"It's going to be a patchwork of different genres and whatever they have in the can that they can run," media consultant Brad Adgate said of the broadcast schedules.
New episodes of scripted shows will be in much shorter supply. ABC's hit comedy "Abbott Elementary," Paramount Network's top-rated drama "Yellowstone" and NBC's long-running crime series "Law & Order" will show reruns.
ABC's entire Thursday night lineup consists of game shows: "Celebrity Wheel of Fortune," "Press Your Luck" and "The $100,000 Pyramid." The Walt Disney-owned DIS.N network has no new scripted programming on its fall schedule.
"Move over, Hot Labor Summer. It’s time for Sad TV Fall," the Los Angeles Times wrote.
CATERING TO OLDER VIEWERS
Broadcast television already faced major challenges as younger audiences switched to streaming.
The average age of broadcast viewers was 62, according to Nielsen data from November of last season, compared with 40 on streaming.
Today, the biggest drama on broadcast draws around 10 million viewers, compared with roughly 20 million a decade ago.
Adding to the tumult, ABC has gone dark in nearly 15 million homes because of a dispute between Disney and cable TV provider Charter Communications CHTR.O.
While the strikes compounded problems for broadcast executives, they said they had planned ahead and applied lessons learned when COVID-19 abruptly halted production, forcing them to rewrite schedules and seek overseas programming they could bring to U.S. audiences.
"We've navigated through the pandemic and that has helped us think about how to prepare for this," said Dan Harrison, executive vice president of program planning and content strategy for Fox Entertainment.
Fox FOXA.O is bringing back Ramsay's "Kitchen Nightmares," which ended a decade ago, on Mondays and will continue his "Hell's Kitchen" series on Thursdays.
The network also will benefit from its recent focus on adult animation. Next to new episodes of "The Simpsons," "Family Guy" and "Bob's Burgers," Fox will introduce "Krapopolis" about a city run by a family of humans, gods and monsters. Writing of those shows was completed well before the strikes because animation takes longer to produce.
Comcast's CMCSA.O NBC started some of its drama productions earlier than usual in preparation for a potential strike, said Steve Kern, senior vice president of program planning and strategy for NBC Entertainment.
NBC has scheduled fresh episodes of five scripted dramas, including "Magnum P.I.," newcomer "Found" and a Canadian series, "Transplant."
"Our schedule is largely returning intact," Kern said.
One thing missing from NBC: new installments in creator Dick Wolf's "Law & Order" and "Chicago" franchises. The network will air repeats.
'YELLOWSTONE' JOINS SUNDAY LINEUP
Despite the shake-ups, executives see opportunities.
Paramount Global PARA.O hopes to turn new fans on to "Yellowstone," which has been running on the Paramount Network cable channel and streaming on Peacock.
The first season of the drama about a wealthy ranch owner played by Kevin Costner will air on CBS, also owned by Paramount, after "Sunday Night Football" and "60 Minutes."
For scripted shows, CBS will run the British edition of hit comedy "Ghosts," and the first international version of the "NCIS" franchise, set in Sydney.
Viewers can turn to streaming services for new series, though they too have seen popular dramas such as "Stranger Things" and "Euphoria" shut down by the strikes.
Netflix just released "One Piece," a live-action adaptation of the Japanese manga series about pirates, and Apple TV+ will release a new season of "The Morning Show" next week. A reboot of "Frasier" starring Kelsey Grammer will debut on Paramount+ in November.
(Reporting by Lisa Richwine; Editing by Mary Milliken and Jonathan Oatis)
((lisa.richwine@thomsonreuters.com; Follow me on Twitter @LARichwine; 1-424-434-7324; Reuters Messaging: lisa.richwine.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Networks are trying to fill gaps created when Hollywood writers walked off the job in May, shutting down comedy and drama sets just as they were gearing up to film fall shows. ABC's hit comedy "Abbott Elementary," Paramount Network's top-rated drama "Yellowstone" and NBC's long-running crime series "Law & Order" will show reruns. While the strikes compounded problems for broadcast executives, they said they had planned ahead and applied lessons learned when COVID-19 abruptly halted production, forcing them to rewrite schedules and seek overseas programming they could bring to U.S. audiences.
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By Lisa Richwine LOS ANGELES, Sept 7 (Reuters) - Broadcast television networks kick off the fall TV season this month with strike-depleted lineups featuring game shows, reruns and a 72-year-old widower looking for love in the reality TV dating pool. ABC's hit comedy "Abbott Elementary," Paramount Network's top-rated drama "Yellowstone" and NBC's long-running crime series "Law & Order" will show reruns. "We've navigated through the pandemic and that has helped us think about how to prepare for this," said Dan Harrison, executive vice president of program planning and content strategy for Fox Entertainment.
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By Lisa Richwine LOS ANGELES, Sept 7 (Reuters) - Broadcast television networks kick off the fall TV season this month with strike-depleted lineups featuring game shows, reruns and a 72-year-old widower looking for love in the reality TV dating pool. ABC's hit comedy "Abbott Elementary," Paramount Network's top-rated drama "Yellowstone" and NBC's long-running crime series "Law & Order" will show reruns. Comcast's CMCSA.O NBC started some of its drama productions earlier than usual in preparation for a potential strike, said Steve Kern, senior vice president of program planning and strategy for NBC Entertainment.
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By Lisa Richwine LOS ANGELES, Sept 7 (Reuters) - Broadcast television networks kick off the fall TV season this month with strike-depleted lineups featuring game shows, reruns and a 72-year-old widower looking for love in the reality TV dating pool. ABC's hit comedy "Abbott Elementary," Paramount Network's top-rated drama "Yellowstone" and NBC's long-running crime series "Law & Order" will show reruns. "We've navigated through the pandemic and that has helped us think about how to prepare for this," said Dan Harrison, executive vice president of program planning and content strategy for Fox Entertainment.
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13929.0
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2023-09-07 00:00:00 UTC
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US STOCKS-S&P, Nasdaq fall as Apple drags, jobless claims data fuels rate jitters
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-fall-as-apple-drags-jobless-claims-data-fuels-rate-jitters
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nan
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nan
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By Shristi Achar A and Amruta Khandekar
Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday with Apple leading declines in megacap growth stocks on concerns over China's iPhone curbs, while weaker-than-expected jobless claims data stoked worries about sticky inflation.
Apple AAPL.O dropped 3.6% on that China has widened curbs on the use of iPhones by state employees, requiring staff at some central government agencies to stop using their mobile phones at work.
Bloomberg on Thursday reported that China planned to broaden the iPhone ban to state firms and agencies.
Other megacaps Tesla TSLA.O, Nvidia NVDA.O and Amazon.com AMZN.O fell between 1% and 3.4% in early trading.
Shares of Apple suppliers including Skyworks Solutions SWKS.O, Qualcomm QCOM.O and Qorvo QRVO.O also slid between 4% and 5.3%.
The S&P 500 information technology index .SPLRCT fell 2.0% while the Philadelphia semiconductor index .SOX slipped 2.7%.
Fueling concerns about interest rates staying elevated for longer, a Labor Department report showed the number of Americans filing for unemployment claims stood at 216,000 for the week ended Sept. 2, compared with estimates of 234,000 claims.
"If you're invested in stocks you want the economy to slow but not collapse, so any strength in the economy is going to lead people to believe that the Fed is going to possibly raise interest rate in September," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
Expectations that the Fed was nearing the end of its rate-hike cycle have been watered down in recent days by stronger-than-expected U.S. economic data.
Wall Street's main indexes ended lower on Wednesday after a report highlighted robust service-sector activity last month.
Traders' bets on the Fed leaving interest rates unchanged in September stood at 91%, while their odds for a pause in the November meeting were at 51.7%, down from nearly 59% a week earlier, according to the CME Group's FedWatch Tool.
Further denting sentiment, data showed China's exports and imports fell in August, with sagging overseas demand and weak consumer spending hitting businesses in the world's second-largest economy.
Shares of U.S.-listed Chinese firms including PDD Holdings PDD.O, JD.com JD.O, Baidu BIDU.O and Alibaba BABA.N fell between 3.4% and 4.5%.
Investors await comments from at least six Fed speakers, including policy voting members Philadelphia Fed President Patrick Harker, Vice Chair and New York Fed President John Williams, due to speak later in the day.
At 9:38 a.m. ET, the Dow Jones Industrial Average .DJI was up 14.26 points, or 0.04%, at 34,457.45, the S&P 500 .SPX was down 26.88 points, or 0.60%, at 4,438.60, and the Nasdaq Composite .IXIC was down 193.72 points, or 1.40%, at 13,678.75.
Helping keep the Dow afloat, McDonald's MCD.N rose nearly 1% after Wells Fargo upgraded the stock to "overweight".
Automation software firm UiPathPATH.N added 3.8% on an upbeat annual revenue forecast after it topped estimates for second-quarter results.
Declining issues outnumbered advancers by a 1.79-to-1 ratio on the NYSE and by a 2.41-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and 10 new lows, while the Nasdaq recorded 8 new highs and 99 new lows.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Additional reporting by Johann M Cherian Editing by Vinay Dwivedi)
((Shristi.AcharA@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O dropped 3.6% on that China has widened curbs on the use of iPhones by state employees, requiring staff at some central government agencies to stop using their mobile phones at work. By Shristi Achar A and Amruta Khandekar Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday with Apple leading declines in megacap growth stocks on concerns over China's iPhone curbs, while weaker-than-expected jobless claims data stoked worries about sticky inflation. Traders' bets on the Fed leaving interest rates unchanged in September stood at 91%, while their odds for a pause in the November meeting were at 51.7%, down from nearly 59% a week earlier, according to the CME Group's FedWatch Tool.
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Apple AAPL.O dropped 3.6% on that China has widened curbs on the use of iPhones by state employees, requiring staff at some central government agencies to stop using their mobile phones at work. By Shristi Achar A and Amruta Khandekar Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday with Apple leading declines in megacap growth stocks on concerns over China's iPhone curbs, while weaker-than-expected jobless claims data stoked worries about sticky inflation. Traders' bets on the Fed leaving interest rates unchanged in September stood at 91%, while their odds for a pause in the November meeting were at 51.7%, down from nearly 59% a week earlier, according to the CME Group's FedWatch Tool.
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Apple AAPL.O dropped 3.6% on that China has widened curbs on the use of iPhones by state employees, requiring staff at some central government agencies to stop using their mobile phones at work. By Shristi Achar A and Amruta Khandekar Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday with Apple leading declines in megacap growth stocks on concerns over China's iPhone curbs, while weaker-than-expected jobless claims data stoked worries about sticky inflation. Investors await comments from at least six Fed speakers, including policy voting members Philadelphia Fed President Patrick Harker, Vice Chair and New York Fed President John Williams, due to speak later in the day.
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Apple AAPL.O dropped 3.6% on that China has widened curbs on the use of iPhones by state employees, requiring staff at some central government agencies to stop using their mobile phones at work. By Shristi Achar A and Amruta Khandekar Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday with Apple leading declines in megacap growth stocks on concerns over China's iPhone curbs, while weaker-than-expected jobless claims data stoked worries about sticky inflation. The S&P 500 information technology index .SPLRCT fell 2.0% while the Philadelphia semiconductor index .SOX slipped 2.7%.
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13930.0
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2023-09-07 00:00:00 UTC
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Is First Trust Dow 30 Equal Weight ETF (EDOW) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-first-trust-dow-30-equal-weight-etf-edow-a-strong-etf-right-now-0
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nan
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Making its debut on 08/08/2017, smart beta exchange traded fund First Trust Dow 30 Equal Weight ETF (EDOW) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is sponsored by First Trust Advisors. It has amassed assets over $242.47 million, making it one of the average sized ETFs in the Style Box - Large Cap Blend. Before fees and expenses, this particular fund seeks to match the performance of the Dow Jones Industrial Average Equal Weight Index.
The Dow Jones Industrial Average Equal Weight Index is an equally weighted index designed to be a price neutral version of the price-weighted DJIA.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.50%, making it on par with most peer products in the space.
EDOW's 12-month trailing dividend yield is 1.89%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 21.30% of the portfolio. Financials and Industrials round out the top three.
Looking at individual holdings, Visa Inc. (class A) (V) accounts for about 3.51% of total assets, followed by Apple Inc. (AAPL) and Verizon Communications Inc. (VZ).
The top 10 holdings account for about 34.33% of total assets under management.
Performance and Risk
The ETF has added about 5.47% and is up about 12.58% so far this year and in the past one year (as of 09/07/2023), respectively. EDOW has traded between $24.82 and $31.03 during this last 52-week period.
EDOW has a beta of 0.91 and standard deviation of 15.63% for the trailing three-year period. With about 31 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust Dow 30 Equal Weight ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $349.85 billion in assets, SPDR S&P 500 ETF has $411.96 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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First Trust Dow 30 Equal Weight ETF (EDOW): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Visa Inc. (class A) (V) accounts for about 3.51% of total assets, followed by Apple Inc. (AAPL) and Verizon Communications Inc. (VZ). Click to get this free report First Trust Dow 30 Equal Weight ETF (EDOW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 08/08/2017, smart beta exchange traded fund First Trust Dow 30 Equal Weight ETF (EDOW) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
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Click to get this free report First Trust Dow 30 Equal Weight ETF (EDOW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Visa Inc. (class A) (V) accounts for about 3.51% of total assets, followed by Apple Inc. (AAPL) and Verizon Communications Inc. (VZ). Making its debut on 08/08/2017, smart beta exchange traded fund First Trust Dow 30 Equal Weight ETF (EDOW) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
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Click to get this free report First Trust Dow 30 Equal Weight ETF (EDOW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Visa Inc. (class A) (V) accounts for about 3.51% of total assets, followed by Apple Inc. (AAPL) and Verizon Communications Inc. (VZ). Making its debut on 08/08/2017, smart beta exchange traded fund First Trust Dow 30 Equal Weight ETF (EDOW) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
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Looking at individual holdings, Visa Inc. (class A) (V) accounts for about 3.51% of total assets, followed by Apple Inc. (AAPL) and Verizon Communications Inc. (VZ). Click to get this free report First Trust Dow 30 Equal Weight ETF (EDOW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 08/08/2017, smart beta exchange traded fund First Trust Dow 30 Equal Weight ETF (EDOW) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
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13931.0
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2023-09-07 00:00:00 UTC
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GLOBAL MARKETS-Stocks fall with Apple, dollar rises after U.S. data
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-fall-with-apple-dollar-rises-after-u.s.-data
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nan
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By Caroline Valetkevitch
NEW YORK, Sept 7 (Reuters) - Global stock indexes were mostly lower on Thursday, with the S&P 500 and Nasdaq falling with shares of Apple, and the U.S. dollar advanced after weaker-than-expected U.S. jobless claims data.
Initial claims for state unemployment benefits fell unexpectedly to 216,000 in the week ended Sept. 2 from a revised 229,000 the week before. The latest week's numbers were the lowest since February.
A separate report showed U.S. worker productivity in the second quarter was not as strong as initially announced.
Recent data has underscored the view that the U.S. economy remains resilient and that U.S. interest rates may need to stay higher for longer.
China's onshore yuan CNY=CFXS slid to a 16-year low versus the dollar, weighed down by a property slump, weak consumer spending and shrinking credit growth in the world's second-largest economy.
In Japan, traders remained on intervention watch as the Japanese yen struggled to make sustained headway against a resilient dollar.
The greenback hit a fresh top of 147.875 yen JPY=EBS earlier, its highest since November, and was last down 0.4% at 147.20.
Against a basket of currencies including the euro and sterling, the dollar =USD rose 0.1% to 105.05, after earlier touching a six-month peak.
"The fundamental story in the U.S. is still a bit stronger than the rest of the world. That continues to be a huge catalyst for dollar strength," said Brad Bechtel, global head of foreign exchange at Jefferies in New York.
European stocks ended down for a seventh straight session, while the MSCI global index was down for a third day in a row.
The pan-European STOXX 600 index .STOXX ended down 0.1% and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.35%.
U.S. Treasury yields eased following the U.S. economic data.
The yield on the benchmark U.S. 10-year Treasury note US10YT=RR fell to 4.25%.
Investors also digested comments late in the day from Federal Reserve Bank of New York President John Williams, who said that it's an "open question" whether monetary policy is restrictive enough to bring the economy back into balance.
In the energy market, Brent crude oil fell below $90 a barrel in volatile trade after a near two-week rally, amid signals of weaker demand.
Brent crude futures LCOc1 settled 68 cents, or 0.8%, lower at $89.92 a barrel, while U.S. crude CLc1 futures finished down 67 cents, or 0.8%, at $86.67.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Asian stock markets https://tmsnrt.rs/2zpUAr4
Oil cuts showing effects https://tmsnrt.rs/3EszfxJ
(Additional reporting by Gertrude Chavez-Dreyfuss in New York, Marc Jones in London and Kevin Buckland in Tokyo; Editing by Susan Fenton, Nick Zieminski and Diane Craft)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Caroline Valetkevitch NEW YORK, Sept 7 (Reuters) - Global stock indexes were mostly lower on Thursday, with the S&P 500 and Nasdaq falling with shares of Apple, and the U.S. dollar advanced after weaker-than-expected U.S. jobless claims data. China's onshore yuan CNY=CFXS slid to a 16-year low versus the dollar, weighed down by a property slump, weak consumer spending and shrinking credit growth in the world's second-largest economy. Investors also digested comments late in the day from Federal Reserve Bank of New York President John Williams, who said that it's an "open question" whether monetary policy is restrictive enough to bring the economy back into balance.
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In the energy market, Brent crude oil fell below $90 a barrel in volatile trade after a near two-week rally, amid signals of weaker demand. Brent crude futures LCOc1 settled 68 cents, or 0.8%, lower at $89.92 a barrel, while U.S. crude CLc1 futures finished down 67 cents, or 0.8%, at $86.67. World FX rates YTD http://tmsnrt.rs/2egbfVh Asian stock markets https://tmsnrt.rs/2zpUAr4 Oil cuts showing effects https://tmsnrt.rs/3EszfxJ (Additional reporting by Gertrude Chavez-Dreyfuss in New York, Marc Jones in London and Kevin Buckland in Tokyo; Editing by Susan Fenton, Nick Zieminski and Diane Craft) ((caroline.valetkevitch@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Caroline Valetkevitch NEW YORK, Sept 7 (Reuters) - Global stock indexes were mostly lower on Thursday, with the S&P 500 and Nasdaq falling with shares of Apple, and the U.S. dollar advanced after weaker-than-expected U.S. jobless claims data. Initial claims for state unemployment benefits fell unexpectedly to 216,000 in the week ended Sept. 2 from a revised 229,000 the week before. World FX rates YTD http://tmsnrt.rs/2egbfVh Asian stock markets https://tmsnrt.rs/2zpUAr4 Oil cuts showing effects https://tmsnrt.rs/3EszfxJ (Additional reporting by Gertrude Chavez-Dreyfuss in New York, Marc Jones in London and Kevin Buckland in Tokyo; Editing by Susan Fenton, Nick Zieminski and Diane Craft) ((caroline.valetkevitch@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Initial claims for state unemployment benefits fell unexpectedly to 216,000 in the week ended Sept. 2 from a revised 229,000 the week before. Recent data has underscored the view that the U.S. economy remains resilient and that U.S. interest rates may need to stay higher for longer. European stocks ended down for a seventh straight session, while the MSCI global index was down for a third day in a row.
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13932.0
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2023-09-07 00:00:00 UTC
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China moves to widen state employee iPhone curbs -sources
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AAPL
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https://www.nasdaq.com/articles/china-moves-to-widen-state-employee-iphone-curbs-sources
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nan
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By Julie Zhu and Kevin Yao
HONG KONG/BEIJING, Sept 7 (Reuters) - China has in recent weeks widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work, two sources familiar with the matter said.
Against a backdrop of tensions between Beijing and Washington, the extension of a ban imposed more than two years ago signals growing challenges for the U.S. company, which relies heavily on China for revenue growth and manufacturing.
Staff in at least three ministries and government bodies were told not to use iPhones at work, said the sources, who declined to be named due to the sensitivity of the situation.
One of the sources said they had not yet been given a deadline to cease their iPhone use.
Apple and China's State Council Information Office, which handles media queries on behalf of the government, did not immediately respond to requests for comment.
It was not immediately clear how widely the ban was being enforced, with a third source at one of the three ministries saying he was still using an iPhone and had not yet heard about the restriction.
A fourth source, at a Chinese regulatory body, said they had not been explicitly barred but were told they would be held responsible should any issues emerge with their use of iPhones.
A fifth source at another regulatory body said senior staff had two years ago already been required to swap their iPhones for locally made brands such as Huawei Technologies HWT.UL.
In 2020, state-owned Chinese financial publication Economic Observer reported that some government agencies had implemented rules to ban officials from using iPhone due to Apple's strict privacy rules that make it difficult for anti-corruption officials to access and investigate suspects' phones.
Apple's shares slipped on Wednesday and Thursday after the Wall Street Journal first reported the move, amid fears of tit-for-tat action as Sino-U.S. tension rise.
Bloomberg on Thursday reported that China planned to broaden the ban to state firms and agencies, citing sources.
STRONG SALES
Citi analysts noted that the news had also weighed on the shares of Apple suppliers and said the market may have "have overreacted to the news flow amidst weak confidence overall," citing how shares in suppliers of U.S. automaker Tesla TSLA.O tumbled but quickly recovered after reports of China restricting its cars from entering military complexes in 2021.
China is one of Apple's biggest markets and generates nearly a fifth of its revenue. Apple together with its suppliers employs thousands of workers in China and CEO Tim Cook stressed its long ties with the country during a March visit to Beijing.
Apple has been enjoying strong sales in China, ranking in third place in overall smartphone shipments in the second quarter according to consultancy Canalys, partly thanks to the hit to Huawei's mobile business from U.S. sanctions, which has left it the main premium smartphone maker in China.
China has increasingly emphasized using locally-made tech products, as technology has become a major national security issue for Beijing and Washington.
Government agencies and state-owned enterprises (SOEs) in both countries have been the first and most important areas to push forward such a campaign.
A major part of the campaign centred on requiring government departments and SOEs to replace foreign-made products in their IT systems with domestic alternatives.
The replacement effort accelerated this year in China after an order was issued to SOEs by the state asset regulator, which required they complete the replacement tasks by 2027 in critical IT infrastructure such as office software platforms.
Chinese rivals to Apple include Xiaomi 1810.HK, Oppo and Vivo.
Huawei last week unveiled its latest Mate 60 Pro smartphone that teardown firms say contains a domestically developed advanced chip and could bring it back to rivalling Apple.
(Reporting by Hong Kong, Beijing and Shanghai Newsrooms; Writing by Brenda Goh; Editing by Alexander Smith)
((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Julie Zhu and Kevin Yao HONG KONG/BEIJING, Sept 7 (Reuters) - China has in recent weeks widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work, two sources familiar with the matter said. Against a backdrop of tensions between Beijing and Washington, the extension of a ban imposed more than two years ago signals growing challenges for the U.S. company, which relies heavily on China for revenue growth and manufacturing. Huawei last week unveiled its latest Mate 60 Pro smartphone that teardown firms say contains a domestically developed advanced chip and could bring it back to rivalling Apple.
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By Julie Zhu and Kevin Yao HONG KONG/BEIJING, Sept 7 (Reuters) - China has in recent weeks widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work, two sources familiar with the matter said. In 2020, state-owned Chinese financial publication Economic Observer reported that some government agencies had implemented rules to ban officials from using iPhone due to Apple's strict privacy rules that make it difficult for anti-corruption officials to access and investigate suspects' phones. Bloomberg on Thursday reported that China planned to broaden the ban to state firms and agencies, citing sources.
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By Julie Zhu and Kevin Yao HONG KONG/BEIJING, Sept 7 (Reuters) - China has in recent weeks widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work, two sources familiar with the matter said. In 2020, state-owned Chinese financial publication Economic Observer reported that some government agencies had implemented rules to ban officials from using iPhone due to Apple's strict privacy rules that make it difficult for anti-corruption officials to access and investigate suspects' phones. Citi analysts noted that the news had also weighed on the shares of Apple suppliers and said the market may have "have overreacted to the news flow amidst weak confidence overall," citing how shares in suppliers of U.S. automaker Tesla TSLA.O tumbled but quickly recovered after reports of China restricting its cars from entering military complexes in 2021.
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By Julie Zhu and Kevin Yao HONG KONG/BEIJING, Sept 7 (Reuters) - China has in recent weeks widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple AAPL.O mobiles at work, two sources familiar with the matter said. Against a backdrop of tensions between Beijing and Washington, the extension of a ban imposed more than two years ago signals growing challenges for the U.S. company, which relies heavily on China for revenue growth and manufacturing. Staff in at least three ministries and government bodies were told not to use iPhones at work, said the sources, who declined to be named due to the sensitivity of the situation.
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13933.0
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2023-09-07 00:00:00 UTC
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Why PYPL Stock Might Be 2023’s Most Underrated Tech Play
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AAPL
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https://www.nasdaq.com/articles/why-pypl-stock-might-be-2023s-most-underrated-tech-play
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Here’s a billion-dollar question for you. Why hasn’t PayPal (NASDAQ:PYPL) stock participated in the massive tech-stock rally of 2023 so far? A main reason is the market’s feelings of reluctance and uncertainty about PayPal during this transitional period for the company.
So, if you’re willing to take on some risk, you might have a chance to invest in PayPal at a favorable share price.
Remember, 70% of Millennials reportedly use PayPal for their money transactions. This is a top-tier fintech business that too many financial traders and commentators are underestimating, in my opinion.
Why Can’t PYPL Stock Find Its Footing?
If there’s one thing that the financial market can’t stand, it’s uncertainty. Personally, I thrive when there’s uncertainty because that’s when asset prices are undervalued. However, it’s psychologically difficult for some investors to tolerate not knowing what the future holds.
Right now, I invite you to lean into the uncertainty surrounding PayPal rather than avoid it. The company is in a critical transitional period, as Alex Chriss is set to replace current PayPal CEO Dan Schulman on Sept. 27.
Until now, Chriss has been an outsider to PayPal (i.e., he’s not an executive at the company). And, as Peerage Capital founder Miles Nadal explained, “Coming from the outside, whatever your credentials or accomplishments, you are going to face fear-based skepticism.”
Don’t get the wrong idea. PYPL stock has struggled in 2023 so far because of a number of factors, including concerns about the threat from Apple’s (NASDAQ:AAPL) Apple Pay service.
However, I suspect that fear of C-suite change is also driving the market’s trepidation about PayPal.
Finding Stability With PayPal’s Stablecoin
My point is, give the new CEO a chance before pronouncing a final judgment on PayPal’s future prospects. While you’re at it, consider that PayPal looks like a reasonably valued tech company, with its trailing 12-month price-to-earnings (P/E) ratio of 17.76x.
Chriss will inherit an exciting development at PayPal: the company’s stablecoin, known as PayPal USD. This is a cryptocurrency token which, because it’s a stablecoin, will be pegged to the U.S. dollar.
It will certainly be interesting to see what PayPal, under Chriss’s leadership, does with PayPal USD. Even if this new token isn’t used to make day-to-day purchases in the near future, it’s reasonable to expect that customers will use PayPal USD to purchase and sell other cryptocurrency tokens on PayPal’s platform.
Meanwhile, the U.S. government is still figuring out its stance, policy-wise, regarding stablecoins. It’s exciting to consider the possibility that PayPal will be on the forefront of a potential stablecoin revolution in the 2020s.
Consider the Risks and Rewards of PYPL Stock
AB Bernstein analyst Harshita Rawat recently stated that the upcoming CEO changeover “has been a key overhang over PayPal’s stock.” I fully agree, and I see an opportunity here. The market’s uncertainty about PayPal should pass after the company installs its new chief executive.
PayPal is boldly advancing what could be a game-changing stablecoin. In this light, PayPal may be severely undervalued and the market seems unduly fearful about the company. So, as long as you’re aware of the risks involved, this is a great time to give PYPL stock a try with a small share position.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
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It doesn’t matter if you have $500 or $5 million. Do this now.
The post Why PYPL Stock Might Be 2023’s Most Underrated Tech Play appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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PYPL stock has struggled in 2023 so far because of a number of factors, including concerns about the threat from Apple’s (NASDAQ:AAPL) Apple Pay service. And, as Peerage Capital founder Miles Nadal explained, “Coming from the outside, whatever your credentials or accomplishments, you are going to face fear-based skepticism.” Don’t get the wrong idea. Consider the Risks and Rewards of PYPL Stock AB Bernstein analyst Harshita Rawat recently stated that the upcoming CEO changeover “has been a key overhang over PayPal’s stock.” I fully agree, and I see an opportunity here.
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PYPL stock has struggled in 2023 so far because of a number of factors, including concerns about the threat from Apple’s (NASDAQ:AAPL) Apple Pay service. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Here’s a billion-dollar question for you. Why hasn’t PayPal (NASDAQ:PYPL) stock participated in the massive tech-stock rally of 2023 so far?
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PYPL stock has struggled in 2023 so far because of a number of factors, including concerns about the threat from Apple’s (NASDAQ:AAPL) Apple Pay service. Finding Stability With PayPal’s Stablecoin My point is, give the new CEO a chance before pronouncing a final judgment on PayPal’s future prospects. Chriss will inherit an exciting development at PayPal: the company’s stablecoin, known as PayPal USD.
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PYPL stock has struggled in 2023 so far because of a number of factors, including concerns about the threat from Apple’s (NASDAQ:AAPL) Apple Pay service. Why Can’t PYPL Stock Find Its Footing? Chriss will inherit an exciting development at PayPal: the company’s stablecoin, known as PayPal USD.
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13934.0
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2023-09-07 00:00:00 UTC
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Huawei's new smartphone uses more China-made parts than previous models-TechInsights
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AAPL
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https://www.nasdaq.com/articles/huaweis-new-smartphone-uses-more-china-made-parts-than-previous-models-techinsights
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nan
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nan
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By Brenda Goh
SHANGHAI, Sept 7 (Reuters) - Huawei Technologies' new high-end smartphone contains more China-made chip components than previous models in a sign of Beijing's advances in the semiconductor sphere, according to research firm TechInsights, which is taking the device apart.
"It looks like more than half, maybe two-thirds of the silicon is domestically grown capability, where in the phones we were seeing 2-3 years ago, a third was domestic. That's another really big advance they've made," Dan Hutcheson, an analyst with TechInsights, told Reuters.
The Ottawa-based firm has since last weekend been examining parts of Huawei's Mate 60 Pro and said earlier that the phone is powered by a new advanced chip that China's top contract chipmaker SMIC 0981.HK manufactured using an advanced 7 nanometre (nm) technology, a breakthrough for the duo hit by U.S. sanctions.
"The significance is that it shows that China has been able to stay 2-2.5 nodes behind the world's best (chip) companies. People thought they would be stopped at 14 nanometer," Hutcheson said.
Analysts have been speculating over how costly it has been for Huawei to achieve the breakthrough, revealed last week during U.S. Commerce Secretary Gina Raimondo's visit to China, and what the chip's production yield could be, which refers to the number of usable chips from each wafer and affects production costs.
Some research firms forecast SMIC's 7 nm process has a yield rate below 50%, versus the industry norm of 90% or more, and the low yield would limit shipments to around 2-4 million chips, not enough for Huawei to regain its former smartphone market dominance.
Hutcheson, however, said "above 50%" was reasonable in his view, saying the chip was made in a far cleaner fashion and was much more competent than an earlier iteration of a 7 nm chip also made by SMIC that TechInsights examined last year.
"You can tell by how well it's made," he said. "China's been buying tools like crazy so they probably have the capability to do this and yield ok with it."
Huawei and SMIC did not immediately respond to requests for comment.
Huawei's smartphone business was decimated after the U.S. started restricting tech exports to the company in 2019 and analysts say the phone could mark a first step in the company's efforts to come back to rival Apple AAPL.O.
Some early users of the phone have also posted videos of the phone containing NAND flash memory chips made by South Korea's SK Hynix Inc 000660.KS, which voluntarily suspended chip sales to Huawei after the Chinese firm was hit by Washington's sanctions.
"SK Hynix no longer does business with Huawei since the introduction of the U.S. restrictions against the company and with regard to the issue we started an investigation to find out more details," the company said in a statement.
"SK Hynix is strictly abiding by the U.S. government's export restrictions."
(Reporting by Brenda Goh; Additional reporting by Joyce Lee in Seoul and David Kirton in Shenzhen; Editing by Miyoung Kim and David Evans)
((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Huawei's smartphone business was decimated after the U.S. started restricting tech exports to the company in 2019 and analysts say the phone could mark a first step in the company's efforts to come back to rival Apple AAPL.O. By Brenda Goh SHANGHAI, Sept 7 (Reuters) - Huawei Technologies' new high-end smartphone contains more China-made chip components than previous models in a sign of Beijing's advances in the semiconductor sphere, according to research firm TechInsights, which is taking the device apart. The Ottawa-based firm has since last weekend been examining parts of Huawei's Mate 60 Pro and said earlier that the phone is powered by a new advanced chip that China's top contract chipmaker SMIC 0981.HK manufactured using an advanced 7 nanometre (nm) technology, a breakthrough for the duo hit by U.S. sanctions.
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Huawei's smartphone business was decimated after the U.S. started restricting tech exports to the company in 2019 and analysts say the phone could mark a first step in the company's efforts to come back to rival Apple AAPL.O. By Brenda Goh SHANGHAI, Sept 7 (Reuters) - Huawei Technologies' new high-end smartphone contains more China-made chip components than previous models in a sign of Beijing's advances in the semiconductor sphere, according to research firm TechInsights, which is taking the device apart. The Ottawa-based firm has since last weekend been examining parts of Huawei's Mate 60 Pro and said earlier that the phone is powered by a new advanced chip that China's top contract chipmaker SMIC 0981.HK manufactured using an advanced 7 nanometre (nm) technology, a breakthrough for the duo hit by U.S. sanctions.
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Huawei's smartphone business was decimated after the U.S. started restricting tech exports to the company in 2019 and analysts say the phone could mark a first step in the company's efforts to come back to rival Apple AAPL.O. The Ottawa-based firm has since last weekend been examining parts of Huawei's Mate 60 Pro and said earlier that the phone is powered by a new advanced chip that China's top contract chipmaker SMIC 0981.HK manufactured using an advanced 7 nanometre (nm) technology, a breakthrough for the duo hit by U.S. sanctions. Hutcheson, however, said "above 50%" was reasonable in his view, saying the chip was made in a far cleaner fashion and was much more competent than an earlier iteration of a 7 nm chip also made by SMIC that TechInsights examined last year.
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Huawei's smartphone business was decimated after the U.S. started restricting tech exports to the company in 2019 and analysts say the phone could mark a first step in the company's efforts to come back to rival Apple AAPL.O. The Ottawa-based firm has since last weekend been examining parts of Huawei's Mate 60 Pro and said earlier that the phone is powered by a new advanced chip that China's top contract chipmaker SMIC 0981.HK manufactured using an advanced 7 nanometre (nm) technology, a breakthrough for the duo hit by U.S. sanctions. "SK Hynix no longer does business with Huawei since the introduction of the U.S. restrictions against the company and with regard to the issue we started an investigation to find out more details," the company said in a statement.
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13935.0
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2023-09-07 00:00:00 UTC
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Bear of the Day: Taiwan Semi (TSM)
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AAPL
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https://www.nasdaq.com/articles/bear-of-the-day%3A-taiwan-semi-tsm
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nan
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nan
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Taiwan Semiconductor (TSM), the giant $500 billion microchip foundry for Apple (AAPL) and NVIDIA (NVDA), has slipped into the cellar of the Zacks Rank as analysts ratcheted down EPS estimates in the past two months.
Despite TSM's importance as the premier "fab" for the world's top technology companies, the current year profit consensus has fallen from $5.32 to $4.82, representing a -26% annual drop.
And next year has also been taken down from $6.26 to $5.79. At the same time, the 2024 revenue consensus of $79.6 billion would only represent a 4.6% advance over the 2022 sales.
Has Semiconductor Demand or Production Peaked?
This might be a really important question for technology investors as TSM is the key foundry for Apple and NVIDIA.
But the other underlying issues involve both geopolitics and economic trade barriers as chip designers seek to reduce their exposure to the China-Taiwan conflicts and supply chain disruptions by building significant silicon wafer fabrication equipment (WFE) capabilities on domestic shores like the US.
I recently touched on these dynamics in my Bear of the Day article on GlobalFoundries (GFS) where I discussed how this US-based Semi fabricator fights to draw new business in a global nanometer AI-chip war.
Big Picture for TSM: Honey, I Shrunk the Kids!
The article linked above has significant insights from one of my favorite Semi analysts, Mark Lipacis of Jefferies, where he describes the landscape of "trailing node" in the semi supply chain.
I'm going to provide an excerpt here but I want to emphasize that what makes TSM special is their virtual monopoly on technological capabilities to fabricate sub-10 nanometer architectures that give Apple and NVIDIA the "honey I shrunk the kids" compact power they crave.
WFE Demand Historically Driven By Leading Edge and Memory
Lipacis describes the industry dynamics, even in the midst of AI-GPU mania that exceeded his expectations (but not mine, where we were heavy buyers of NVDA near $120 during the October bear market nadir)...
"Historically, WFE demand was primarily driven by leading-edge logic chips like CPUs in PCs, processors used in datacenters or application processors and modems used in cellphones, led by most advanced logic and increasingly smaller and cheaper memory solutions. Consequently, ~80% of WFE spend was driven by leading edge logic and memory."
But Trailing Node is a New Driver of WFE, Driven by an IoT Computing Era
"We've argued that the industry has entered the '4th Tectonic Shift to an IoT Computing Era,' where for the first time in history, the volume computing device, IoT, requires trailing node instead of the leading-edge chips required by previous computing eras, like handsets and PCs."
The Lipacis team estimates that this IoT Computing Era is rapidly growing to 10s of billions of devices annually, which is driving demand for trailing node WFE. They estimate that trailing node CapEx will increase from 22% of WFE historically to 46% of WFE spend in 2023 and believe the Street is underestimating the importance of Trailing Node CapEx.
They also believe that increased tensions between the US and China will lead US and European-based semiconductor companies and OEMs will shift sourcing to domestic players, ultimately translating to faster revenue growth. This works for GFS as they have EU fabs too.
(end of GlobalFoundries article excerpt)
Bottom line on TSM: They have the premier foundry for sub-10nm chipsets and NVIDIA's Jensen Huang has a close relationship since he is also from Taiwan. As long as international tensions don't hurt Taiwan's capacity to produce, the stock should trough soon.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
GlobalFoundries Inc. (GFS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Taiwan Semiconductor (TSM), the giant $500 billion microchip foundry for Apple (AAPL) and NVIDIA (NVDA), has slipped into the cellar of the Zacks Rank as analysts ratcheted down EPS estimates in the past two months. Click to get this free report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report GlobalFoundries Inc. (GFS) : Free Stock Analysis Report To read this article on Zacks.com click here. But the other underlying issues involve both geopolitics and economic trade barriers as chip designers seek to reduce their exposure to the China-Taiwan conflicts and supply chain disruptions by building significant silicon wafer fabrication equipment (WFE) capabilities on domestic shores like the US.
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Taiwan Semiconductor (TSM), the giant $500 billion microchip foundry for Apple (AAPL) and NVIDIA (NVDA), has slipped into the cellar of the Zacks Rank as analysts ratcheted down EPS estimates in the past two months. Click to get this free report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report GlobalFoundries Inc. (GFS) : Free Stock Analysis Report To read this article on Zacks.com click here. "We've argued that the industry has entered the '4th Tectonic Shift to an IoT Computing Era,' where for the first time in history, the volume computing device, IoT, requires trailing node instead of the leading-edge chips required by previous computing eras, like handsets and PCs."
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Taiwan Semiconductor (TSM), the giant $500 billion microchip foundry for Apple (AAPL) and NVIDIA (NVDA), has slipped into the cellar of the Zacks Rank as analysts ratcheted down EPS estimates in the past two months. Click to get this free report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report GlobalFoundries Inc. (GFS) : Free Stock Analysis Report To read this article on Zacks.com click here. They estimate that trailing node CapEx will increase from 22% of WFE historically to 46% of WFE spend in 2023 and believe the Street is underestimating the importance of Trailing Node CapEx.
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Taiwan Semiconductor (TSM), the giant $500 billion microchip foundry for Apple (AAPL) and NVIDIA (NVDA), has slipped into the cellar of the Zacks Rank as analysts ratcheted down EPS estimates in the past two months. Click to get this free report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report GlobalFoundries Inc. (GFS) : Free Stock Analysis Report To read this article on Zacks.com click here. Despite TSM's importance as the premier "fab" for the world's top technology companies, the current year profit consensus has fallen from $5.32 to $4.82, representing a -26% annual drop.
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13936.0
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2023-09-07 00:00:00 UTC
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Dow Movers: AAPL, JNJ
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AAPL
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https://www.nasdaq.com/articles/dow-movers%3A-aapl-jnj
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nan
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nan
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In early trading on Thursday, shares of Johnson & Johnson topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.4%. Year to date, Johnson & Johnson has lost about 9.3% of its value.
And the worst performing Dow component thus far on the day is Apple, trading down 3.3%. Apple is showing a gain of 36.1% looking at the year to date performance.
Two other components making moves today are Nike, trading down 1.9%, and Intel, trading up 1.3% on the day.
VIDEO: Dow Movers: AAPL, JNJ
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Dow Movers: AAPL, JNJ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Johnson & Johnson topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.4%. And the worst performing Dow component thus far on the day is Apple, trading down 3.3%.
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VIDEO: Dow Movers: AAPL, JNJ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Johnson & Johnson topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.4%. Year to date, Johnson & Johnson has lost about 9.3% of its value.
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VIDEO: Dow Movers: AAPL, JNJ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Johnson & Johnson topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.4%. And the worst performing Dow component thus far on the day is Apple, trading down 3.3%.
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VIDEO: Dow Movers: AAPL, JNJ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Johnson & Johnson topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.4%. And the worst performing Dow component thus far on the day is Apple, trading down 3.3%.
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13937.0
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2023-09-07 00:00:00 UTC
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Warner Bros. Discovery's (WBD) SAVIOR COMPLEX to Debut on Sep 26
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AAPL
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https://www.nasdaq.com/articles/warner-bros.-discoverys-wbd-savior-complex-to-debut-on-sep-26
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nan
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Warner Bros. Discovery WBD announced that the HBO Original three-part documentary series, SAVIOR COMPLEX, is set to debut on Sep 26.
The first episode of the docuseries will be available on Sep 26 at 9 p.m. ET/PT on HBO, followed by episodes two and three airing on Sep 27 at 9 p.m. ET/PT. All three episodes will be available to stream on Max beginning Sep 26.
Directed by the Emmy-winning filmmaker Jackie Jesko and executive produced by Nick Capote, Alex Waterfield and Academy Award winner Roger Ross Williams, SAVIOR COMPLEX delves deeper into the contentious narrative of Renee Bach, a youthful American missionary who felt called by God to establish a charity for undernourished children in Jinja, Uganda.
However, as time passed, disturbing accusations emerged suggesting that Renee was personally providing medical treatment to the ailing children, despite lacking the necessary medical qualifications. In its exploration of Renee's polarizing path, the series also raises broader inquiries about the concept of white saviorism and moral considerations surrounding foreign aid work conducted in the name of humanitarian and religious ideals.
Warner Bros. Discovery, Inc. Price and Consensus
Warner Bros. Discovery, Inc. price-consensus-chart | Warner Bros. Discovery, Inc. Quote
WBD’s Upcoming Original Content to Fend Off Competition
Warner Bros. Discovery has been focusing on its original content recently. Its upcoming originals are expected to give a tough competition to giants like Netflix NFLX, Apple AAPL and Disney DIS.
Netflix has transformed from its origins as a movie rental service into the premier streaming platform. Some of its upcoming original releases include titles like Lift, Bodies and Choona.
Apple TV Plus is the most budget-friendly premium streaming service, offering an ad-free experience. However, it is distinct from other streaming services because it exclusively offers original content and lacks a library of previously released shows or movies to browse through. Its highly anticipated upcoming original releases are Invasion, Camp Snoopy and Super Models.
Disney has an extensive library which includes Pixar, Marvel and Star Wars movies. These movies regularly bring in original content to the platform. Some of its upcoming original releases include titles like Echo, Ironheart and Wish.
WBD’s Max has a strong selection of content for children, offering better control over content ratings on kids' profiles compared with many other streaming services, which is expected to aid viewer growth in the near term.
This company has an exciting lineup of original content which includes titles like Gentleman Jack, Avenue 5, The Regime, Hellraiser, Snow and Watchmen. This is expected to boost direct-to-consumer (DTC) subscribers and revenues in the upcoming quarters.
The Zacks Consensus Estimate for 2023 total DTC subscribers is pegged at 97,066, indicating year-over-year growth of 1%. The Zacks Consensus Estimate for revenues is pegged at $41.98 billion, indicating year-over-year growth of 24.13%.
Shares of WBD have gained 21.2% year to date compared with the Zacks Consumer Discretionary sector’s rise of 9.4% in the same period due to steady growth in DTC subscribers and revenues in the previous quarters.
However, this Zacks Rank #4 (Sell) company recently guided lower adjusted EBITDA for the full year in the range of $10.5-$11 billion due to the challenges posed by the ongoing strikes in the entertainment industry by the Writers Guild of America and Screen Actors Guild – American Federation of Television and Radio Artists.
This reflects a negative impact of approximately $300 million to $500 million, primarily due to the ongoing strikes affecting the timing and performance of the 2023 film slate and content production.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Warner Bros. Discovery, Inc. (WBD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Its upcoming originals are expected to give a tough competition to giants like Netflix NFLX, Apple AAPL and Disney DIS. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Warner Bros. Directed by the Emmy-winning filmmaker Jackie Jesko and executive produced by Nick Capote, Alex Waterfield and Academy Award winner Roger Ross Williams, SAVIOR COMPLEX delves deeper into the contentious narrative of Renee Bach, a youthful American missionary who felt called by God to establish a charity for undernourished children in Jinja, Uganda.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Warner Bros. Its upcoming originals are expected to give a tough competition to giants like Netflix NFLX, Apple AAPL and Disney DIS. The Zacks Consensus Estimate for 2023 total DTC subscribers is pegged at 97,066, indicating year-over-year growth of 1%.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Warner Bros. Its upcoming originals are expected to give a tough competition to giants like Netflix NFLX, Apple AAPL and Disney DIS. Discovery, Inc. Quote WBD’s Upcoming Original Content to Fend Off Competition Warner Bros.
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Its upcoming originals are expected to give a tough competition to giants like Netflix NFLX, Apple AAPL and Disney DIS. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Warner Bros. Discovery, Inc. Quote WBD’s Upcoming Original Content to Fend Off Competition Warner Bros.
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13938.0
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2023-09-07 00:00:00 UTC
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Analysts Forecast 10% Upside For PWB
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AAPL
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https://www.nasdaq.com/articles/analysts-forecast-10-upside-for-pwb
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco Large Cap Growth ETF (Symbol: PWB), we found that the implied analyst target price for the ETF based upon its underlying holdings is $78.65 per unit.
With PWB trading at a recent price near $71.79 per unit, that means that analysts see 9.56% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PWB's underlying holdings with notable upside to their analyst target prices are AMETEK Inc (Symbol: AME), Apple Inc (Symbol: AAPL), and Chipotle Mexican Grill Inc (Symbol: CMG). Although AME has traded at a recent price of $157.10/share, the average analyst target is 13.37% higher at $178.11/share. Similarly, AAPL has 12.11% upside from the recent share price of $182.91 if the average analyst target price of $205.07/share is reached, and analysts on average are expecting CMG to reach a target price of $2141.00/share, which is 9.56% above the recent price of $1954.12. Below is a twelve month price history chart comparing the stock performance of AME, AAPL, and CMG:
Combined, AME, AAPL, and CMG represent 6.26% of the Invesco Large Cap Growth ETF. Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Invesco Large Cap Growth ETF PWB $71.79 $78.65 9.56%
AMETEK Inc AME $157.10 $178.11 13.37%
Apple Inc AAPL $182.91 $205.07 12.11%
Chipotle Mexican Grill Inc CMG $1954.12 $2141.00 9.56%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
Berkshire Hathaway DMA
PJP Options Chain
SB Next Dividend Date
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Invesco Large Cap Growth ETF PWB $71.79 $78.65 9.56% AMETEK Inc AME $157.10 $178.11 13.37% Apple Inc AAPL $182.91 $205.07 12.11% Chipotle Mexican Grill Inc CMG $1954.12 $2141.00 9.56% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of PWB's underlying holdings with notable upside to their analyst target prices are AMETEK Inc (Symbol: AME), Apple Inc (Symbol: AAPL), and Chipotle Mexican Grill Inc (Symbol: CMG). Similarly, AAPL has 12.11% upside from the recent share price of $182.91 if the average analyst target price of $205.07/share is reached, and analysts on average are expecting CMG to reach a target price of $2141.00/share, which is 9.56% above the recent price of $1954.12.
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Three of PWB's underlying holdings with notable upside to their analyst target prices are AMETEK Inc (Symbol: AME), Apple Inc (Symbol: AAPL), and Chipotle Mexican Grill Inc (Symbol: CMG). Below is a twelve month price history chart comparing the stock performance of AME, AAPL, and CMG: Combined, AME, AAPL, and CMG represent 6.26% of the Invesco Large Cap Growth ETF. Invesco Large Cap Growth ETF PWB $71.79 $78.65 9.56% AMETEK Inc AME $157.10 $178.11 13.37% Apple Inc AAPL $182.91 $205.07 12.11% Chipotle Mexican Grill Inc CMG $1954.12 $2141.00 9.56% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, AAPL has 12.11% upside from the recent share price of $182.91 if the average analyst target price of $205.07/share is reached, and analysts on average are expecting CMG to reach a target price of $2141.00/share, which is 9.56% above the recent price of $1954.12. Three of PWB's underlying holdings with notable upside to their analyst target prices are AMETEK Inc (Symbol: AME), Apple Inc (Symbol: AAPL), and Chipotle Mexican Grill Inc (Symbol: CMG). Below is a twelve month price history chart comparing the stock performance of AME, AAPL, and CMG: Combined, AME, AAPL, and CMG represent 6.26% of the Invesco Large Cap Growth ETF.
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Three of PWB's underlying holdings with notable upside to their analyst target prices are AMETEK Inc (Symbol: AME), Apple Inc (Symbol: AAPL), and Chipotle Mexican Grill Inc (Symbol: CMG). Similarly, AAPL has 12.11% upside from the recent share price of $182.91 if the average analyst target price of $205.07/share is reached, and analysts on average are expecting CMG to reach a target price of $2141.00/share, which is 9.56% above the recent price of $1954.12. Below is a twelve month price history chart comparing the stock performance of AME, AAPL, and CMG: Combined, AME, AAPL, and CMG represent 6.26% of the Invesco Large Cap Growth ETF.
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13939.0
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2023-09-07 00:00:00 UTC
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Meta Platforms (META) to Shut Down Facebook News Tab in Europe
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-meta-to-shut-down-facebook-news-tab-in-europe
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nan
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nan
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Meta Platforms META is set to discontinue the dedicated News tab on Facebook in some European countries. The company will stop offering this feature in the United Kingdom, France and Germany by December 2023. This move is aimed at reallocating resources toward more popular content formats, particularly short-form video content.
Meta's decision to discontinue the News tab in Europe reflects a strategic shift away from the news business. Per a recent CNBC report, the move follows Meta’s decision to make news inaccessible on Facebook and Instagram in Canada.
A new law in Canada obligates tech companies like Meta, Apple AAPL, Microsoft MSFT and Alphabet GOOGL to pay content fees to media outlets. These tech giants are also facing regulatory heat in Europe due to the EU’s new Digital Markets Act.
The Facebook News tab debuted in 2019 as a feature designed to provide users with high-quality news content. It was created through partnerships with reputable news organizations to ensure credible news sources.
Meta has stated that its users are not particularly interested in news content. Per its data, the News section makes up less than 3% of what users around the world consume in their Facebook feed.
The company has assured that the changes affecting the Facebook News feature will not alter Meta's products and services in these nations. Users will continue to have access to links to news articles on Facebook.
News publishers in Europe will not lose their access to Facebook Pages accounts where they will be able to post links to their stories and direct people to their websites. News publishers in these countries can still use Meta’s ad system and products like Reel to reach a wider audience and attract traffic to their websites and are not required to share any revenues derived from outbound links on Facebook.
Meta Platforms’ Prospects Appear Bright in 2023
Meta shares have surged 149% year to date, outperforming the Zacks Computer and Technology sector’s return of 50.9% as well as its peers Apple, Microsoft and Alphabet, shares of which have returned 40.8%, 38.8% and 52.4%, respectively.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
Meta has been benefiting from strong engagement trends across its apps. Family Daily Active People or DAP, defined as a registered and logged-in user who visited at least one of the Family products (Facebook, Instagram, Messenger and/or WhatsApp) on a given day, were 3.07 billion, up 6.6% year over year in the second quarter of 2023.
Meta is witnessing continued progress in Threads, Reels and Llama 2. The company is leveraging artificial intelligence to recommend Reels content, which is driving traffic on Instagram and Facebook. Upcoming Quest 2 is expected to boost this Zacks Rank #3 (Hold) company’s Metaverse ambitions. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meta expects total revenues between $32 billion and $34.5 billion for the third quarter of 2023. Favorable forex is expected to aid year-over-year top-line growth by roughly 3%.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $33.41 billion, indicating 20.55% year-over-year growth.
The consensus mark for third-quarter earnings is pegged at $3.53 per share, up 2.6% over the past 30 days.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A new law in Canada obligates tech companies like Meta, Apple AAPL, Microsoft MSFT and Alphabet GOOGL to pay content fees to media outlets. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. News publishers in these countries can still use Meta’s ad system and products like Reel to reach a wider audience and attract traffic to their websites and are not required to share any revenues derived from outbound links on Facebook.
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A new law in Canada obligates tech companies like Meta, Apple AAPL, Microsoft MSFT and Alphabet GOOGL to pay content fees to media outlets. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Meta Platforms, Inc. Price and Consensus Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote Meta has been benefiting from strong engagement trends across its apps.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. A new law in Canada obligates tech companies like Meta, Apple AAPL, Microsoft MSFT and Alphabet GOOGL to pay content fees to media outlets. Meta Platforms META is set to discontinue the dedicated News tab on Facebook in some European countries.
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A new law in Canada obligates tech companies like Meta, Apple AAPL, Microsoft MSFT and Alphabet GOOGL to pay content fees to media outlets. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Users will continue to have access to links to news articles on Facebook.
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13940.0
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2023-09-07 00:00:00 UTC
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Why Apple Stock Just Dropped 5%
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AAPL
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https://www.nasdaq.com/articles/why-apple-stock-just-dropped-5
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nan
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nan
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What happened
Shares of tech giant and iEverything specialist Apple (NASDAQ: AAPL) tumbled 5.1% on Thursday morning at 9:30 a.m. ET, after multiple news outlets reported that the Chinese government is making moves to ban the iPhone from China.
So what
Specifically, Beijing has ordered officials working for central government agencies to not use iPhones (or other "foreign-branded devices") for work, or even to bring these devices into the office, says The Wall Street Journal. It's not clear precisely who is affected by the usage ban, or what its precise parameters are. What's more, neither China's State Council Information Office or its the National Civil Service Administration is responding to requests for clarification.
It's also not entirely clear what China's goal is with this ban. The WSJ posits that the government may be aiming to restrict the ability of foreign companies to extract "sensitive information" from China. But the aim may also be to promote usage of domestic manufacturers' devices, to eat away at Apple's domestic dominance of high-end cellphone sales in China, or even to impose tit-for-tat consequences on U.S. restrictions on usage of Chinese tech such as Huawei cellphones or TikTok's apps in government offices here.
Whatever the goal, the effect is clear: Investors are spooked, and they're selling off Apple stock.
Now what
Should they be spooked, though? On the one hand, reports indicate that China's restrictions apply to all "foreign-branded devices," and that makes it sound as if this is a ban that could affect not just Apple, but its archrival in cellphones globally -- Samsung. Therefore, this move won't hurt Apple's growth rate as much as would a rule that favors Samsung over Apple. Rather, it will just promote a host of smaller, less effective Chinese competitors at Apple's expense, and in just one country.
The bigger problem is that this is a pretty big country we're talking about. According to data from S&P Global Market Intelligence, last year, nearly $1 out of every $5 Apple took in in revenue came from China. And this proportion of China sales to overall sales has held roughly constant for at least the last five years.
Although the ban for now seems limited to high-ranking government officials, and to apply only in the workplace, we've all seen in recent years how Chinese regulations can turn on a dime and tighten without much warning. And that seems to be the direction China is heading in now.
In short, therefore, yes, I think Apple investors do have good reason to worry today.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of tech giant and iEverything specialist Apple (NASDAQ: AAPL) tumbled 5.1% on Thursday morning at 9:30 a.m. On the one hand, reports indicate that China's restrictions apply to all "foreign-branded devices," and that makes it sound as if this is a ban that could affect not just Apple, but its archrival in cellphones globally -- Samsung. Although the ban for now seems limited to high-ranking government officials, and to apply only in the workplace, we've all seen in recent years how Chinese regulations can turn on a dime and tighten without much warning.
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What happened Shares of tech giant and iEverything specialist Apple (NASDAQ: AAPL) tumbled 5.1% on Thursday morning at 9:30 a.m. ET, after multiple news outlets reported that the Chinese government is making moves to ban the iPhone from China. Whatever the goal, the effect is clear: Investors are spooked, and they're selling off Apple stock.
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What happened Shares of tech giant and iEverything specialist Apple (NASDAQ: AAPL) tumbled 5.1% on Thursday morning at 9:30 a.m. But the aim may also be to promote usage of domestic manufacturers' devices, to eat away at Apple's domestic dominance of high-end cellphone sales in China, or even to impose tit-for-tat consequences on U.S. restrictions on usage of Chinese tech such as Huawei cellphones or TikTok's apps in government offices here. Whatever the goal, the effect is clear: Investors are spooked, and they're selling off Apple stock.
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What happened Shares of tech giant and iEverything specialist Apple (NASDAQ: AAPL) tumbled 5.1% on Thursday morning at 9:30 a.m. Whatever the goal, the effect is clear: Investors are spooked, and they're selling off Apple stock. On the one hand, reports indicate that China's restrictions apply to all "foreign-branded devices," and that makes it sound as if this is a ban that could affect not just Apple, but its archrival in cellphones globally -- Samsung.
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13941.0
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2023-09-07 00:00:00 UTC
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US House panel chair: wider Chinese iPhone ban aims to quash Apple's market access
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AAPL
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https://www.nasdaq.com/articles/us-house-panel-chair%3A-wider-chinese-iphone-ban-aims-to-quash-apples-market-access
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nan
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nan
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Adds quote from lawmaker in paragraph three, background in paragraph 4, share price in paragraph 5
Sept 7 (Reuters) - A wider ban on China state employees from using Apple's AAPL.O iPhones is not surprising and seeks to limit a Western company's market access, the chairman of the U.S. House panel on China told Reuters on Thursday.
"This is textbook Chinese Communist Party (CCP) behavior - promote PRC (People's Republic of China) national champions in telecommunications, and slowly squeeze western companies' market access," U.S. Representative Mike Gallagher said in an emailed statement.
"American tech companies seeking to cozy up to the CCP must realize the clock is ticking,” added Gallagher, a Republican.
China in recent weeks has widened curbs on the use of iPhones by state employees, telling staff in at least three ministries and government bodies to stop using their Apple mobile phones at work, Reuters reported on Thursday, following earlier reports by the Wall Street Journal and Bloomberg.
Apple's shares have slipped amid the reports amid fears of tit-for-tat action as Sino-U.S. tension rise. Shares of the company were down about 3% in midday trade on Thursday.
Apple and China's State Council Information Office, which handles media queries on behalf of the government, have not responded to requests for comment on the reported ban.
(Reporting by Karen Freifeld and Jasper Ward; Writing by Ismail Shakil; Editing by Susan Heavey and Doina Chiacu)
((ismail.shakil@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds quote from lawmaker in paragraph three, background in paragraph 4, share price in paragraph 5 Sept 7 (Reuters) - A wider ban on China state employees from using Apple's AAPL.O iPhones is not surprising and seeks to limit a Western company's market access, the chairman of the U.S. House panel on China told Reuters on Thursday. "This is textbook Chinese Communist Party (CCP) behavior - promote PRC (People's Republic of China) national champions in telecommunications, and slowly squeeze western companies' market access," U.S. Representative Mike Gallagher said in an emailed statement. "American tech companies seeking to cozy up to the CCP must realize the clock is ticking,” added Gallagher, a Republican.
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Adds quote from lawmaker in paragraph three, background in paragraph 4, share price in paragraph 5 Sept 7 (Reuters) - A wider ban on China state employees from using Apple's AAPL.O iPhones is not surprising and seeks to limit a Western company's market access, the chairman of the U.S. House panel on China told Reuters on Thursday. "This is textbook Chinese Communist Party (CCP) behavior - promote PRC (People's Republic of China) national champions in telecommunications, and slowly squeeze western companies' market access," U.S. Representative Mike Gallagher said in an emailed statement. Apple's shares have slipped amid the reports amid fears of tit-for-tat action as Sino-U.S. tension rise.
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Adds quote from lawmaker in paragraph three, background in paragraph 4, share price in paragraph 5 Sept 7 (Reuters) - A wider ban on China state employees from using Apple's AAPL.O iPhones is not surprising and seeks to limit a Western company's market access, the chairman of the U.S. House panel on China told Reuters on Thursday. "This is textbook Chinese Communist Party (CCP) behavior - promote PRC (People's Republic of China) national champions in telecommunications, and slowly squeeze western companies' market access," U.S. Representative Mike Gallagher said in an emailed statement. China in recent weeks has widened curbs on the use of iPhones by state employees, telling staff in at least three ministries and government bodies to stop using their Apple mobile phones at work, Reuters reported on Thursday, following earlier reports by the Wall Street Journal and Bloomberg.
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Adds quote from lawmaker in paragraph three, background in paragraph 4, share price in paragraph 5 Sept 7 (Reuters) - A wider ban on China state employees from using Apple's AAPL.O iPhones is not surprising and seeks to limit a Western company's market access, the chairman of the U.S. House panel on China told Reuters on Thursday. "This is textbook Chinese Communist Party (CCP) behavior - promote PRC (People's Republic of China) national champions in telecommunications, and slowly squeeze western companies' market access," U.S. Representative Mike Gallagher said in an emailed statement. "American tech companies seeking to cozy up to the CCP must realize the clock is ticking,” added Gallagher, a Republican.
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13942.0
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2023-09-07 00:00:00 UTC
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Stocks Lower as Weakness in Apple Weighs on Tech Stocks
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AAPL
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https://www.nasdaq.com/articles/stocks-lower-as-weakness-in-apple-weighs-on-tech-stocks
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) today is down -0.45%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.08%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.83%.
Stock indexes this morning are mostly lower, with the S&P 500 falling to a 1-1/2 week low and the Nasdaq 100 index falling to a one-week low. The broader market is under pressure today due to weakness in technology stocks. Apple is down more than -3% to add to Wednesday’s -3% drop to lead technology stocks lower on a report from the Wall Street Journal that said China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Strength in defensive pharmaceutical stocks today is providing support for the Dow Jones Industrials index.
Stocks are also under pressure from today’s news that U.S. weekly initial unemployment claims unexpectedly fell to a 7-month low, a sign of strength in the labor market that may prompt the Fed to keep interest rates higher for longer.
U.S. weekly initial unemployment claims unexpectedly fell -13,000 to a 7-month low of 216,000, showing a stronger labor market than expectations of an increase to 233,000. Weekly continuing claims fell -40,000 to 1.679 million, showing a stronger labor market than expectations of 1.719 million.
U.S. Q2 nonfarm productivity was revised lower to +3.5% from the initially reported +3.7%, stronger than expectations of +3.4%. Also, Q2 unit labor costs were revised higher to +2.2% from the initially reported +1.6%, stronger than expectations of +1.9%.
The markets are discounting the odds at 7% for a +25 bp rate hike at the September 20 FOMC meeting and 50% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields are lower. The 10-year T-note yield fell back from a 2-week high of 4.304% and is down -0.1 bp at 4.278%. The 10-year German bund yield is down -3.1 bp at 2.623%. The 10-year UK gilt yield is down -5.0 bp at 4.483%.
Overseas stock markets are lower. The Euro Stoxx 50 is down -0.30%. China’s Shanghai Composite Index closed down -1.13%. Japan’s Nikkei Stock Index closed down -0.75%.
Today’s stock movers…
Apple (AAPL) is down more than -3% to lead losers in the Dow Jones Industrials, adding to Wednesday’s -3% drop, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Apple suppliers are also falling on the news, with Qualcomm (QCOM) down more than -6%, leading losers in the Nasdaq 100. Also, Skyworks Solutions (SWKS) is down more than -6%, and Qorvo (QRVO) is down more than -5%. In addition, Micron Technology (MU) is down more than -1%.
Seagate Technology Holdings Plc (STX) is down more than -8% to lead losers in the SP 500 after Barclays downgraded the stock to equal weight from overweight.
Rollins (ROL) is down more than -7 % after holder LOR Inc. announced a sale of 38.7 million shares of the stock via Goldman Sachs and Morgan Stanley.
FMC Corp (FMC) is down more than -3% after Blue Orca Capital said FMC’s patents aren’t enough to protect it from competition from rival generic products.
Nvidia (NVDA) is down more than -2%, adding to Wednesday’s -2% fall after Research Affiliates said the stock is “a textbook story of a Big Market Delusion,” and with shares trading around 110 times earnings, the stock is priced beyond perfection.
Verint Systems (VRNT) is down more than -14% after reporting Q2 adjusted revenue of $210.4 million, weaker than the consensus of $226.6 million, and cut its full-year adjusted revenue forecast to $910 million from a previous estimate of $935 million, below the consensus of $933.6 million.
C3.ai (AI) is down more than -13% after saying it expects its fiscal-year adjusted loss will be as much as -$100 million, wider than a previous estimate of -$75 million, and that profitability would take longer than expected.
Dell Technologies (DELL) is down more than -1% after Barclays downgraded the stock to underweight from equal weight.
Westrock (WRK) is up more than +5% to lead gainers in the S&P 500 after the Wall Street Journal reported the company is nearing a deal to merge with Smurfit Kappa.
T-Mobile US (TMUS) is up more than +3% to lead gainers in the Nasdaq 100 after Bloomberg Intelligence said the launch of the iPhone 15 could provide a boost to T-Mobile’s premium service plans.
G-III Apparel Group Ltd (GIII) is up more than +15% after reporting Q2 net sales of $659.8 million, well above the consensus of $592.2 million.
UiPath (PATH) is up more than +8% after reporting Q2 total revenue of $287.3 million, better than the consensus of $282.3 million, and sees 2024 revenue of $1.27 billion-$1.28 billion, stronger than the consensus of $1.27 billion.
Akamai Technologies (AKAM) is up more than +3% after Bank of America Global Research initiated coverage of the stock with a buy recommendation and a price target of $145.
Cboe Global Markets (CBOE) is up more than +1% after reporting the average daily volume for August was up +25.4%
McDonald’s (MCD) is up more than +1% after Wells Fargo Securities upgraded the stock to overweight from equal weight.
Across the markets…
December 10-year T-notes (ZNZ23) today are up +3 ticks, and the 10-year T-note yield is down -0.1 bp at 4.278%. Dec T-note prices today recovered from a 1-1/2 week low, and the 10-year T-note yield fell back from a 2-week high of 4.304% as a slump in stocks sparked safe-haven demand for government debt. T-notes this morning initially moved lower on U.S. economic news that showed weekly jobless claims unexpectedly fell to a 7-month low, and Q2 unit labor costs were revised higher.
The dollar index (DXY00) today is up +0.17% and climbed to a 5-3/4 month high. Today’s U.S. economic news that showed an unexpected decline in weekly jobless claims and an upward revision to Q2 labor costs are hawkish for Fed policy and bullish for the dollar. Also, pessimism in China’s economic outlook prompted the yuan to fall to a 15-year low against the dollar.
EUR/USD (^EURUSD) is down by -0.24% and fell to a 3-month low. Strength in the dollar today is weighing on the euro. Also, weaker-than-expected Eurozone economic news is bearish for EUR/USD after Eurozone Q2 GDP was revised lower and German July industrial production fell more than expected.
Eurozone Q2 GDP was revised lower to +0.1% q/q and +0.5% y/y from the previously reported +0.3% q/q and +0.6% y/y. Also, German July industrial production fell -0.8% m/m, weaker than expectations of -0.4% y/y.
USD/JPY (^USDJPY) is down -0.21%. The yen today recovered from a 10-month low against the dollar and is moderately higher. A slump in stocks today has boosted the safe-haven demand for the yen. The yen also found support today on comments from BOJ Board member Nakagawa, who said the BOJ will closely coordinate with the government in monitoring foreign exchange rates.
Today’s Japanese economic news was bearish for the yen after the July leading index CI fell -1.2 to a 2-3/4 year low of 107.6, weaker than expectations of 107.8.
October gold (GCV3) today is down -1.0 (-0.05%), and Dec silver (SIZ23) is down -0.198 (-0.84%). Precious metals prices this morning are moderately lower, with silver falling to a 2-1/2 week low. Today's rally in the dollar index to a 5-3/4 month high weighs metals prices. Silver prices were undercut today by industrial metals demand concerns after Eurozone Q2 GDP was revised downward and German July industrial production fell more than expected. In addition, gold prices are under pressure on continued liquidation of gold holdings by funds after long gold holdings in ETFs fell to a 3-1/3 year low Wednesday. Losses in gold were limited as today’s selloff in stocks sparked some safe-haven demand for gold.
More Stock Market News from Barchart
War is a ‘Good’ Business as AeroVironment (AVAV) Confirms
Apple Stock: Should You Buy the Dip Ahead of Tuesday's iPhone 15 Launch?
VIX: Sentiment Says Stocks Will Rise- Is it Wrong?
Markets Today: Stocks Drop on Apple Weakness and U.S. Labor Market Strength
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Today’s stock movers… Apple (AAPL) is down more than -3% to lead losers in the Dow Jones Industrials, adding to Wednesday’s -3% drop, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Apple is down more than -3% to add to Wednesday’s -3% drop to lead technology stocks lower on a report from the Wall Street Journal that said China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Stocks are also under pressure from today’s news that U.S. weekly initial unemployment claims unexpectedly fell to a 7-month low, a sign of strength in the labor market that may prompt the Fed to keep interest rates higher for longer.
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Today’s stock movers… Apple (AAPL) is down more than -3% to lead losers in the Dow Jones Industrials, adding to Wednesday’s -3% drop, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Dec T-note prices today recovered from a 1-1/2 week low, and the 10-year T-note yield fell back from a 2-week high of 4.304% as a slump in stocks sparked safe-haven demand for government debt. T-notes this morning initially moved lower on U.S. economic news that showed weekly jobless claims unexpectedly fell to a 7-month low, and Q2 unit labor costs were revised higher.
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Today’s stock movers… Apple (AAPL) is down more than -3% to lead losers in the Dow Jones Industrials, adding to Wednesday’s -3% drop, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Stock indexes this morning are mostly lower, with the S&P 500 falling to a 1-1/2 week low and the Nasdaq 100 index falling to a one-week low. Stocks are also under pressure from today’s news that U.S. weekly initial unemployment claims unexpectedly fell to a 7-month low, a sign of strength in the labor market that may prompt the Fed to keep interest rates higher for longer.
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Today’s stock movers… Apple (AAPL) is down more than -3% to lead losers in the Dow Jones Industrials, adding to Wednesday’s -3% drop, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Stock indexes this morning are mostly lower, with the S&P 500 falling to a 1-1/2 week low and the Nasdaq 100 index falling to a one-week low. Weekly continuing claims fell -40,000 to 1.679 million, showing a stronger labor market than expectations of 1.719 million.
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13943.0
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2023-09-07 00:00:00 UTC
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US STOCKS-S&P, Nasdaq fall as Apple drags, jobless claims data fuels rate jitters
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-fall-as-apple-drags-jobless-claims-data-fuels-rate-jitters-0
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nan
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nan
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By Shristi Achar A and Amruta Khandekar
Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday with Apple leading declines in megacap growth stocks on concerns over China's iPhone curbs, while a fall in weekly jobless claims stoked worries about sticky inflation.
Apple AAPL.O declined for a second day, down 3.3%, on that China has widened curbs on the use of iPhones by state employees, requiring staff at some central government agencies to stop using their mobile phones at work.
Bloomberg on Thursday reported that China planned to broaden the iPhone ban to state firms and agencies.
Growth stocks Tesla TSLA.O, Nvidia NVDA.O and Netflix NFLX.O also fell between 1.4% and 3.1%.
"The nature of this announcement seems to have refocused investors that the relationship between the U.S. and China is a big risk to current equity prices, particularly in technology," said Rick Meckler, partner at Cherry Lane Investments.
Shares of Apple suppliers including Skyworks Solutions SWKS.O, Qualcomm QCOM.O and Qorvo QRVO.O slid between 7.1% and 7.6%.
The S&P 500 information technology index .SPLRCT fell 1.9% while the Philadelphia semiconductor index .SOX dropped 2.8%.
Fueling concerns about interest rates staying elevated for longer, a Labor Department report showed the number of Americans filing for unemployment claims fell to 216,000 for the week ended Sept. 2, hitting their lowest level since February.
Expectations that the Fed was nearing the end of its rate-hike cycle have been watered down in recent days by stronger-than-expected U.S. economic data.
Traders' bets on the Fed leaving interest rates unchanged in September stood at 93%, while their odds for a pause in the November meeting were at 54.1%, down from nearly 59% a week earlier, according to the CME Group's FedWatch Tool.
Further denting sentiment, data showed China's exports and imports fell in August, with sagging overseas demand and weak consumer spending hitting businesses in the world's second-largest economy.
Shares of U.S.-listed Chinese firms including PDD Holdings PDD.O, JD.com JD.O, Baidu BIDU.O and Alibaba BABA.N fell between 3.7% and 5.7%.
While Philadelphia Fed President Patrick Harker did not comment on the likely U.S. monetary policy path, investors remain focused on other Fed speakers later in the day, including policy voting member and New York Fed President John Williams.
At 11:53 a.m. ET, the S&P 500 .SPX was down 21.95 points, or 0.49%, at 4,443.53, and the Nasdaq Composite .IXIC was down 176.52 points, or 1.27%, at 13,695.95.
Despite losses in Apple, which ranks eleventh in terms of weightage on the Dow Jones .DJI, the cyclicals-heavy index was up 38.25 points, or 0.11%, at 34,481.44.
The weightage of a stock on the Dow is proportional to its share value as opposed to the market capitalization-weighted S&P 500 .SPX..
Also keeping the Dow afloat was a near 1% rise in McDonald's MCD.N after Wells Fargo upgraded the stock to "overweight".
Automation software firm UiPathPATH.N added 9.1% on an upbeat annual revenue forecast.
Declining issues outnumbered advancers by a 1.81-to-1 ratio on the NYSE and by a 2.37-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and 23 new lows, while the Nasdaq recorded 16 new highs and 212 new lows.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Additional reporting by Johann M Cherian Editing by Vinay Dwivedi)
((Shristi.AcharA@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O declined for a second day, down 3.3%, on that China has widened curbs on the use of iPhones by state employees, requiring staff at some central government agencies to stop using their mobile phones at work. By Shristi Achar A and Amruta Khandekar Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday with Apple leading declines in megacap growth stocks on concerns over China's iPhone curbs, while a fall in weekly jobless claims stoked worries about sticky inflation. Fueling concerns about interest rates staying elevated for longer, a Labor Department report showed the number of Americans filing for unemployment claims fell to 216,000 for the week ended Sept. 2, hitting their lowest level since February.
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Apple AAPL.O declined for a second day, down 3.3%, on that China has widened curbs on the use of iPhones by state employees, requiring staff at some central government agencies to stop using their mobile phones at work. By Shristi Achar A and Amruta Khandekar Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday with Apple leading declines in megacap growth stocks on concerns over China's iPhone curbs, while a fall in weekly jobless claims stoked worries about sticky inflation. The S&P 500 information technology index .SPLRCT fell 1.9% while the Philadelphia semiconductor index .SOX dropped 2.8%.
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Apple AAPL.O declined for a second day, down 3.3%, on that China has widened curbs on the use of iPhones by state employees, requiring staff at some central government agencies to stop using their mobile phones at work. By Shristi Achar A and Amruta Khandekar Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday with Apple leading declines in megacap growth stocks on concerns over China's iPhone curbs, while a fall in weekly jobless claims stoked worries about sticky inflation. Fueling concerns about interest rates staying elevated for longer, a Labor Department report showed the number of Americans filing for unemployment claims fell to 216,000 for the week ended Sept. 2, hitting their lowest level since February.
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Apple AAPL.O declined for a second day, down 3.3%, on that China has widened curbs on the use of iPhones by state employees, requiring staff at some central government agencies to stop using their mobile phones at work. By Shristi Achar A and Amruta Khandekar Sept 7 (Reuters) - The S&P 500 and Nasdaq fell on Thursday with Apple leading declines in megacap growth stocks on concerns over China's iPhone curbs, while a fall in weekly jobless claims stoked worries about sticky inflation. The S&P 500 information technology index .SPLRCT fell 1.9% while the Philadelphia semiconductor index .SOX dropped 2.8%.
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13944.0
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2023-09-07 00:00:00 UTC
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Apple Stock: Should You Buy the Dip Ahead of Tuesday's iPhone 15 Launch?
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AAPL
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https://www.nasdaq.com/articles/apple-stock%3A-should-you-buy-the-dip-ahead-of-tuesdays-iphone-15-launch
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nan
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nan
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Apple (AAPL) stock could be in for even more turbulence after enduring a quick correction in August. Wednesday's 3.5% single-day plunge on the back of the Chinese government's iPhone ban for government workers - compounded by today's ongoing weakness - has effectively dashed any hopes for a near-term breakout.
www.barchart.com
That said, let's not discount the potential for Apple's upcoming iPhone showcase to delight investors, even as the market tides look to turn against big tech. Apple's "Wonderlust" event is on tap for next Tuesday, Sept. 12, and the curtain is expected to be pulled back on a handful of new hardware.
Now, there's no question that consumer spending has hit a bit of a snag of late, due in large part to persistent inflationary pressures. Many consumer goods firms - Apple included - have seen their sales slump in recent quarters. That said, the macro headwinds hitting consumers are less of an Apple problem and more of an issue for everyone else.
At the end of the day, Apple offers must-have products through the eyes of its fans. Apple products may well be discretionary (nice-to-have) goods in the strictest sense; however, truly impressive Apple hardware is viewed as more of a staple by its loyal customer base.
Even if the economy isn't firing on all cylinders, financing and trade-in are just some of the options its cash-strapped consumers may consider as they look to upgrade. I believe Apple's recent sales failed to impress Wall Street because of a lack of hot new releases to entice buyers. Indeed, Apple needs a refresher on its slate of products.
Apple's Coming Event, iPhone 15 Reveal Could Heat up the Stock
Come Sept. 12, a handful of new products may kick off the start of a sales re-acceleration. Led by the iPhone 15, Apple's coming refresh cycle could be what the stock needs to break out to a new all-time high. Undoubtedly, a considerable amount of aging iPhones out there require a good upgrade. Though the next iPhone iteration may not mark the biggest leap forward in terms of tech or design, I think the value proposition may be enough to convince users to make the jump.
Amid inflation and macro headwinds, people are hungry for great deals. That's a major reason why off-price retailer TJX (TJX) has been doing incredibly well over the past year. The company may sell discretionary goods, but it sells them at a pretty enticing price point.
Who couldn't use a bargain as the price of everything continues to surge?
Now, Apple has a lot of pricing power. The next iPhone is expected to have a "major price hike." According to analyst Jeff Pu, the iPhone 15 Pro model could start at $1,099. Still, Apple could more than justify the price increase on its highest-end models.
How?
Well, how about a new periscope lens that could allow for optical zoom in the range of 5-6x? That's quite the camera upgrade. Of course, Apple isn't the first smartphone maker to include a lens capable of such impressive optical zoom. However, I'd bet that Apple's spin on such a lens could lead to a camera that's head and shoulders above its peers.
Remember, it's not just the hardware specs that matter. Perfecting the software behind the hardware is what has made Apple so great. In that regard, I do think the next iPhone's camera upgrade may be significant enough for many to justify the upgrade, even amid turbulent economic tides.
A Sizeable Hardware Leap Ahead
While the upgrade from iPhone 14 Pro to iPhone 15 Pro may not be the largest, I think it's hard to argue that the hardware capability leap is one of the most sizeable in recent memory.
It's not just the periscope camera, either. The iPhone 15 Pro's latest chip (likely the A17) is expected to build on the 3nm process. It's also rumored to sport a six-core GPU. It's hard to tell how far ahead of the competition Apple will be as it unveils the A17. However, I do think Apple's latest chip could take a lot of spotlight away from the Huawei Mate 60 Pro and its humble 7nm processor.
Looking past the September event, Apple may be able to deliver significant refreshes to the iPad and Apple Watch.
Going into next year, the iPad could be in for one of its biggest upgrades in years. Such an upgrade could give the iPad segment a shot in the arm after its latest quarterly disappointment. Apple reported $5.79 billion in iPad sales during the latest quarter, short of analyst expectations for $6.41 billion.
Further, Apple is rumored to have a new design for Apple Watch X, a product that could launch as soon as next year. Little is known about what the Watch could feature, but I think it's safe to say the firm will have something big in store for the product's 10th anniversary.
The Bottom Line
Apple's events don't tend to ignite investor enthusiasm. Not even the Apple Vision Pro reveal was impressive enough to give Apple stock a jolt. Still, Apple's next product cycle is promising, even though it may lack the "awe" factor from this year's WWDC.
Apple is a consumer products company that knows what its users want. While the iPhone 15 line is expected to be pricier than its predecessor, look for Apple to justify the higher price tag with features such as the new camera and the A17 chip. Given how impressive Apple's latest hardware capabilities could be, one could argue that an even higher price tag may be justified for the iPhone 15 Pro - as well as Apple's stock.
On the date of publication, Joey Frenette had a position in: AAPL . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) stock could be in for even more turbulence after enduring a quick correction in August. On the date of publication, Joey Frenette had a position in: AAPL . www.barchart.com That said, let's not discount the potential for Apple's upcoming iPhone showcase to delight investors, even as the market tides look to turn against big tech.
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Apple (AAPL) stock could be in for even more turbulence after enduring a quick correction in August. On the date of publication, Joey Frenette had a position in: AAPL . Apple's Coming Event, iPhone 15 Reveal Could Heat up the Stock Come Sept. 12, a handful of new products may kick off the start of a sales re-acceleration.
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Apple (AAPL) stock could be in for even more turbulence after enduring a quick correction in August. On the date of publication, Joey Frenette had a position in: AAPL . Apple products may well be discretionary (nice-to-have) goods in the strictest sense; however, truly impressive Apple hardware is viewed as more of a staple by its loyal customer base.
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Apple (AAPL) stock could be in for even more turbulence after enduring a quick correction in August. On the date of publication, Joey Frenette had a position in: AAPL . In that regard, I do think the next iPhone's camera upgrade may be significant enough for many to justify the upgrade, even amid turbulent economic tides.
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13945.0
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2023-09-07 00:00:00 UTC
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Does It Make Sense to Invest in a Company With Its Name on a Stadium?
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AAPL
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https://www.nasdaq.com/articles/does-it-make-sense-to-invest-in-a-company-with-its-name-on-a-stadium
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nan
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nan
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In this podcast, Motley Fool hosts Ricky Mulvey and Dylan Lewis discuss:
Why stadium sponsors generally don't outperform their peers or the market.
When major sponsorships do and don't make sense as part of a marketing budget.
Monster Energy's brilliance in focusing on extreme sports.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on Sep. 03, 2023
Ricky Mulvey: What I've learned from this is I would not suggest setting up a hedge fund that is completely based on investing in companies based on stadium naming rights. There might be other factors at play.
Dylan Lewis: I'm Dylan Lewis, and that's Motley Fool Money's Ricky Mulvey. The NFL season kicks off this week with the reigning champion Kansas City Chiefs taking on the Detroit Lions on Thursday Night Football. As you ready yourself for Sundays on the couch and a montage of advertisers coming into your living room, we ask Ricky to zoom in on the world of NFL sponsorships and set up an experiment to see how the names you see plastered on stadiums stack-up as stocks. Ricky, you took a look at the NFL stadium sponsors and their performance relative to some of their peers in the market. I think a lot of us have wondered as we've seen names on the side of stadiums, OK, is that an interesting, investable idea?
Ricky Mulvey: It's certainly interesting. In my mind, there are some stadium deals that make a lot of sense. Which is you have a large consumer product brand that you want widespread awareness for. Maybe an easy one would be Gillette razors with Gillette Stadium. Then there were question marks for me around like MetLife, which sells group disability insurance, regional banks with M&T, even in my hometown of Cincinnati, Ohio, human resources software platform Paycor deciding that they wanted to really get their name out there by sponsoring the Bengals home field. I wanted to know if this was a good investment or if this was a group of folks in a boardroom that wanted to press a big red button that says buy stadium rights, so I set up two hedge funds. One hedge fund will call Dylan at the stadium hedge fund. Every time a stadium rights deal is announced, this fund buys $1,000 worth of stock in the purchasing company. They think that buying the naming rights to a stadium is a great investment because you're getting brand awareness. One factor that a lot of people don't talk about is that you're aligning your brand with these beloved hometown teams. You get that positivity. You're going to get organic press that's associated with being a part of this professional sports franchise. That's well worth the millions of dollars that you're paying for, and you know, a lot of those money nerds can't really account for that. Then we have a second group. This is what I'm calling control group hedge fund. This is the personal enemy Dylan, of the stadium hedge fund. They think that this theory is bogus, so every time a company bought naming rights, this fund invested $1,000 in the broader ETF that the company belong to. So for Raymond James, it would be like a financials mutual fund. In the case of Lumen out in Seattle, they bought VGT, the Vanguard Technology Fund. Occasionally, it will have to use the SPY, Standard and Poor's 500 fund, just because they couldn't find an appropriate matching fund on the date that those naming rights were purchased.
Dylan Lewis: I appreciate you doing the dirty work and going into the industry-specific comps there.
Ricky Mulvey: Yeah. We'll talk about the comps to the S&P 500, but I think it's more fair to compare them against their peers. At first glance, you have these racehorses, Dylan. How do you think this would go?
Dylan Lewis: There are a lot of pretty established names and brands that are stadium sponsors and you have to have peer business of a certain size, so there's a part of me that thinks that it wouldn't be overwhelming in one direction or the other, but that it'd be it depends on how you look at it.
Ricky Mulvey: It does depend on how you look at it. Here's what we found. Stocks won, just four times, ETFs won, 14 times. But the total return, in my opinion, was significantly closer because the ETF fund with these $1,000 bets each time had $59,000 in mid-August when we tracked the dates and the stock Group had 52,000. The number of winners overall larger in the ETF group, but the total return a little bit closer. That's because, Foolish investing principle, one big winner can make up for a lot of losers, and in the case of this horse race, it would be Raymond James financial.
Dylan Lewis: That's something we see often in our own portfolios. What I think I also would guess, I don't know the exact dates with Raymond James, but that is a longtime sponsor of the stadium, so we're looking at long-term returns for that hypothetical $1,000 invested.
Ricky Mulvey: Yeah. There's a little bit of survivorship bias in here, so most of the stocks that outperformed three of the four bought the naming rights 20 or more years ago. That includes Raymond James, FedEx, NRG out in Texas. The only one that was a winner on a more shorter-term basis, and this surprised me because it's another question mark of why would you buy a stadium naming rights, is Allegiant Airlines out in Las Vegas.
Dylan Lewis: Trying to build awareness, Ricky. What can you say?
Ricky Mulvey: When you're buying plane tickets, let's say to go to Las Vegas even, Dylan, are you looking at any name brand association or are you looking for the cheapest flight possible? This is a complete commodity industry that's 1,000% determined on price.
Dylan Lewis: Cheapest possible, every time.
Ricky Mulvey: But you know what? I think their marketing people might know something I don't.
Dylan Lewis: That was the industry comp. What do we see when we compare these companies to the broader S&P 500?
Ricky Mulvey: They got smoked for the most part, both on a comparison basis and on a total return basis. Just two of these companies beat the broader market, and the broader market generated about $75,000 while the stock group generated $52,000. So in a lot of cases, the S&P 500 index funds take the wind here.
Dylan Lewis: Yeah. The index fund is undefeated for a good reason. It's generally one of the best ways to put money to work so we take that step back and just look at the high-level takeaways here, Ricky. The stadium sponsors in the NFL of the publicly traded ones, like there's about 19, generally underperformed industry indexes or ETFs and broadly underperformed in the market.
Ricky Mulvey: Yes. What I've learned from this is I would not suggest setting up a hedge fund that is completely based on investing in companies based on stadium naming rights. There might be other factors at play.
Dylan Lewis: For what it's worth, other financial observers have also observed this phenomenon. There was a column from Morningstar in looking at results 2002-2022 at major sports stadium sponsors. They had a lower survival rate than the Top-1,000 stocks, though they were better than the entire market, and majority of the sponsors in that study underperformed the Vanguard Total Stock Market Index. So we are confirming results that have been seen out there before.
Ricky Mulvey: Yeah. I think a major case, and this as well as it's a lot of what I would say mature consumer goods companies which tend to be at best in line with the S&P, or as we may explore later, maybe smaller cap companies that have question marks about whether or not they can afford these naming rights deals, to begin with.
Dylan Lewis: Yeah. I think that's a good point. You have to be probably a mid or large-cap company for any of these deals to be reasonable based on your marketing budget. We go back to the early odds and some of these deals are in the low single-digit millions. But more recently, we are talking about deals that are costing 10, 15, 20 million dollars a year if you average out over the life of the deal. That's pretty expensive for a company to stomach and it's probably not within the marketing budgets of most small-cap companies. It's probably most of their marketing budget for a business that size.
Ricky Mulvey: Yeah. If you look at the case of SoFi, I think that is what I would describe as an interesting bird. They're spending more than $30 million a year for SoFi Stadium naming rights in Los Angeles granted. They've got a couple of NFL teams there playing there, so maybe they're getting two for the price of two. But when you look at the financials of this company, this is one that has no branches and yet its non-interest expense is consistently higher than its total revenue.
Dylan Lewis: Yeah, it's interesting to think about the way that this fits into the overall financial picture for some of these companies. I think on the flip side, something I'm struck by looking at the names and the terms of some of these deals is Ford paying $2 million a year to have their name on the Detroit Lions Stadium. They spent $2 billion a year in advertising. If you think about it from a capital allocation standpoint, the feel good of being locally invested, being named on television every time the home team plays that is well worth $2 million a year.
Ricky Mulvey: Thought about it more with especially some of those regional banks like M&T. It does make sense or in Denver we have Empower, which is spending an estimated $6 million a year for empower field mile high. These are companies that really want to be associated with the community and they are more than happy to absorb the costs of maybe the extra spend that you have to pay for in order to have your name attached to a stadium. But while it's a small spend for a lot of these mature companies, I did think it was interesting to look at the general return on invested capital for these names, especially compared to the broader S&P 500 because maybe this is a way of addressing, hey, how good are these companies in investing large amounts of capital? Now, the ROIC number doesn't necessarily just capture marketing spend. It's how well a company generates profit against its invested capital, book value of equity, debt, leases, that thing, but for a lot of these companies buying stadium, they're making fairly large or at least extremely visible long-term investments, and when I, let's say stuck my finger in the wind to see what was going on, just two of them in our group have higher return on invested capital numbers than the market average. Those two being Procter & Gamble, which has Gillette Stadium, and Raymond James. If you want to include Levi's, which went public a long time after the stadium rights deal that it signed, we can include Levi's as well. But I'm curious to hear what you think about the still or do you think that this reveals anything about these companies making these long-term decisions with stadium naming rights or is it just really hard to beat a market average?
Dylan Lewis: I think it's hard to beat the market average, and there are some limitations here at what we're looking at. This is a class of about 20 companies that we're examining. Sample size is probably below where we need to be for statistical significance, but I think they're observable trends. I think for me, what's interesting about this, as you think about capital allocation and business decisions is this is something that management teams are prioritizing at a pretty decent sticker price. For some of these more recent deals, there needs to be pretty good alignment between what someone is trying to do from a marketing perspective and how they generally acquire customers and that spend, and so I think I look at it like a major financial product type company, it make sense. You want to be familiar as people are making decisions that they don't make all that often, maybe being fresh in people's minds. It doesn't make as much sense for me for some of these other brands and I think we see that born out. It seems to me almost like something that management companies are willing or interested to do when cash is a little bit more abundant.
Ricky Mulvey: That would make sense. It's easier to hit the big button when you have a little bit more, when it's a little bit easier to either raise money or you're generating more profits. I want to talk about some of the flaws in the research those you've already rightly picked out that there's a small group of companies involved in this because part of the reason is that a lot of the teams that sponsor stadiums in the NFL are not publicly traded. But I do think it's worth talking about because anytime you have research, you want to poke holes in it and say what went wrong. In the first case with this group of stocks, it's really hard to find a comparison for companies that made these deals in the 1990s or early odds. There weren't a ton of ETFs then. One that I looked at for some of the car companies like Nissan is called CARZ C-A-R-Z. When Ford signed its deal in 2002, that ETF wasn't around. The other case is that companies spend money in lots of different ways besides naming stadiums. In the case of Procter & Gamble, they spent a lot of money on marketing, not just buying the rights to Gillette Stadium. Maybe that's not the best way to judge a consumer giant like that, and then we also have survivorship bias in this. I'll name some non-NFL stadiums, but among the long-lasting deals. These are companies that have been around for decades and decided, you know what? This is a good investment because they've resigned, Raymond James, M&T bank being a number of them, but there are companies occasionally that by stadium naming rights and then some things happen. In the case of the Houston Astros, they used to play at Enron field and who could forget FTX arena down in Miami where the Miami heat played. Those two companies have fallen on hard times due to circumstances completely outside of their control, so they no longer have the stadium rights, but this is one of those cases where you're going to see that play out in the research.
Dylan Lewis: Yeah, I do think it is interesting. There's an odd pattern to that, and it's something that doesn't come up too frequently, but when it does, it comes up in a way that really lends itself to schadenfreude type headlines for some of those splashy names. I think FTX in particular got a lot of play on the Internet as a corporate sponsor, and I think there's this feeling when you see the name of a business on the side of a building that there's some splash at the management team is looking to make that goes beyond your standard marketing efforts.
Ricky Mulvey: And I think, you're buying legitimacy. So it's that positive association you get from being associated, let's say FTX in the case of the Miami Heat. You have a lot of brand loyalty in years of fandom for a lot of the Miami Heat fans who enjoys showing up in the second half of games, but in that case they know what they're paying for and there might be a little bit of shenanigans associated with it. The biggest flow on the research though, Dylan, I want to talk about, is that in some cases, publicly traded companies do not want to reveal what they are paying for for this stadium naming rights. Sometimes they disclose the extension cost, but you don't know the terms of the original deal. However, there is one that really stands out to me right now. It's with Cincinnati Bengals play it Paycor Stadium. If you will indulge me, Dylan, I would like to go down a rabbit hole about why Paycors Stadium naming rights deals is not public.
Dylan Lewis: I'll indulgent. Yeah, go ahead.
Ricky Mulvey: All right. So in the case of the Bengals, we don't know the terms of the deal because they have not shared it with the public. Hamilton County actually owns the stadium in which the Bengals play in. However, the Bengals have asserted attorney-client privilege with regard to the exact deal they have with Paycor. This is a big deal because part of the contract is that Hamilton County is supposed to have a rev-share when it comes to stadium naming rights if it hits a certain bar. According to WCPO in Cincinnati, the original lease states that the Bengals are entitled to retain the first about $17 million from the sale of naming rights plus 70% of any revenues in excess of that. Meanwhile, Hamilton County attorneys believed that the deal is worth more than $100 million. Here's where we go further down the weeds, the Bengals refusal to make the terms of the deal public is allowed under the lease that they signed in the year 2000.
Ricky Mulvey: What I'm hearing is there a lot of complications around the stadium. Situation for your beloved Cincinnati Bengals. I look over at MetLife Stadium where my New York jets play and I say, you know what? Not only do they get to play host to one of the most important franchises in the NFL. They get twice as many games as any other corporate sponsors and the giants play there. I'm sure it's priced into the contract. I'm sure that was known for negotiators on both sides of the table, Dylan. Paycor Stadium was also supposed to have an MLS team play there. That didn't exactly plan out. But anyway, I want to move on to a broader discussion about awareness marketing. I want to put this to you. We've talked about awareness marketing from terms of stadium naming rights. But a lot of companies do this. This is the top of the funnel. Are there any companies, when you think about this, that do it really well?
Dylan Lewis: Yeah, I think what's hard about stadium sponsorships is they're an incredibly blunt marketing tool. You get your name put out there in a way that's mass broadcast and mentioned a lot on TV. But aside from people generally being interested in the sport and maybe the regional attraction of people that are in a certain area or from a certain area, you don't really know a heck of a lot more about the people that are seeing those brand placements. I think it's interesting when you look at the type of businesses that tend to do it. We've noted that there are not a lot of like big time tech companies in the mix here. They clearly have a very different customer acquisition strategy than some of these companies. I've wondered, do the marketers feel like the trade-off here is worth it? In some cases, I think it's easy to make that case. The Ford Field sponsorship, for example, being $2 million a year as we've talked about. Just an easy one for them to say, yeah, that's worth us doing. But I've always felt like it's not necessarily a bad sign that a company that you're invested in wants no part of this world. Because it's a less specific, less targeted, and probably more expensive per customer way of attracting new people to your business.
Ricky Mulvey: Fair enough. I think there are companies that do awareness marketing extraordinarily well, and usually they have a very clear and specific vision of who their customer is. I think the poster child of this would be Monster Beverage Corporation. They have very specifically aligned themselves with motocross, dirt bikes, professional bull riders. The ultimate fighting championship stock's been done tremendously well. I think it's the best returning stock over the past like 30 years or something. The energy drink makers return on invested capital, even today, is about 20%, and that's on the low end of historic averages. This is a company that knows who's buying its energy drinks very well and they know what media they consume.
Dylan Lewis: I think there's clear alignment there in product and audience in a way that I think is tougher when you get more to the big four sports and the mass broadcast sports. I think, when you're operating in some of the second tier sports and activities, you're going to get a more qualified audience that you're marketing to.
Ricky Mulvey: It's a niche sport. It's not second.
Dylan Lewis: You know waht? I'm going to direct all of our angry motocross emails to Ricky Mulvey.
Ricky Mulvey: We're going to put Dylan Lewis on a bull, see if he can make it for 10 seconds, and then you can tell me if that's a second tier sport. We're going to show more respect to the Professional Bull Riders association.
Dylan Lewis: Only an audience, not in what it asks if its athletes, Ricky. [laughs]
Ricky Mulvey: I will get off my soapbox. But to your point about big tech, it's because in a lot of cases they're playing a different game. Apple, Amazon, and Alphabet, all have deals with the NFL, but all is with regard pretty much to streaming. Apple, I would say has the smaller deal yet the scope of this, which is that they own the superbowl or they sponsor the Super Bowl halftime show is a promotional lever for Apple Music. Amazon recently got the rights to stream Thursday Night Football, and one story that I don't think is getting talked about enough is that YouTube has NFL Sunday ticket. They are spending two-and-a-half billion dollars annually for seven years to show folks out-of-market games on their favorite streaming device.
Dylan Lewis: I think if anything, Ricky, that's proof that if you're looking for investable ideas in the grand scheme of professional sports and the affiliated companies, maybe look outside of the name that is on the stadium itself and look at some of the other players in the space. Because a lot of these big tech companies have correctly identified the value of these broadcasting rights and the new age of streaming. They've been very quick to put some pretty big deals together with these pro sports franchises.
Ricky Mulvey: In the case of YouTube and Alphabet, DirecTV had NFL Sunday ticket for many years prior to that deal. Alphabet was able to come in and say, you know what? We'll spend a billion dollars more per year to stream these games. No problem, don't worry about it. They have the money to make that move. You know what? If it proves to be too expensive, if it doesn't work out for them, I think Alphabet might be OK if this bet doesn't work out.
Dylan Lewis: Yeah, I think they'll figure it out. It is a Ford-sized bet. To go back to what we were talking about before. I do think there are probably some other places to look in pro sports. If you're looking for interesting investable ideas. We've talked about it at length on the show before, but Live Nation with Ticketmaster just continues to be an absolute monster in the live events space, and that's not going to change anytime soon.
Ricky Mulvey: Deidre and Alicia Alfiere just did a good medium dive on Live Nation earlier this week. It's such a weird valuation story to me where the forward PE is above 80, but the price to free cash flow for Live Nation is about 13 times. This has been a tremendous adoption story as well. Where before the pandemic, I think it was less than 10% of tickets that got you into an NFL game were digital. Now it is more than 97%. Ticketmaster not only owns the original marketplace for tickets, but in a lot of cases, the resale market as well. If you want a vertically integrated company, there you go.
Dylan Lewis: I'm going to throw a bone to Cincinnati with this one and say, there's another name that came to mind for me as we were looking for other investable ideas in the space, and that's Cintas. They are probably the provider of most of the uniforms and clothing that people in the arena are wearing, that are working concessions, working services. They are a company that has performed incredibly well over the last three, five, 10 years. They're one of those businesses you've never heard of, but just operate in churn out money.
Ricky Mulvey: They also, I don't know if you know this, but they do sponsor an arena.
Dylan Lewis: They do.
Ricky Mulvey: They've taken a little bit of a smaller stab at it. However, the Xavier Musketeers play at the Cintas center in Cincinnati, Ohio. They've given themselves a little bit of leeway for sponsorship for a school that they're proud to be associated with. But it's probably not quite the deal of putting, slapping your logo on an NFL stadium.
Dylan Lewis: We'll save that for a follow-up episode maybe, be college sports sponsorship paradigm, and dig into some of those lower price deals, Ricky.
Ricky Mulvey: There you go.
Dylan Lewis: Dylan Lewis. Appreciate it. These is sponsors. Ricky, great talking with you.
Ricky Mulvey: As always, people on the program may own stocks mentioned in the Motley Fool may have formal recommendations for or against them, so don't buy or sell anything based solely on what you hear, and listeners, if you have a fun way for us to look at stocks, we want to hear it. We're always looking for episode ideas. If you've got one shoot us a note at podcasts@fool.com. A quick programming note, we'll be enjoying the Monday Labor Day break, but we'll be back with episodes on Tuesday. Until then, Fool on.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dylan Lewis has no position in any of the stocks mentioned. Ricky Mulvey has positions in Procter & Gamble. The Motley Fool has positions in and recommends Absolute Software, Alphabet, Amazon.com, Apple, FedEx, and Monster Beverage. The Motley Fool recommends Allegiant Travel and Live Nation Entertainment. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As you ready yourself for Sundays on the couch and a montage of advertisers coming into your living room, we ask Ricky to zoom in on the world of NFL sponsorships and set up an experiment to see how the names you see plastered on stadiums stack-up as stocks. Then there were question marks for me around like MetLife, which sells group disability insurance, regional banks with M&T, even in my hometown of Cincinnati, Ohio, human resources software platform Paycor deciding that they wanted to really get their name out there by sponsoring the Bengals home field. For some of these more recent deals, there needs to be pretty good alignment between what someone is trying to do from a marketing perspective and how they generally acquire customers and that spend, and so I think I look at it like a major financial product type company, it make sense.
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In this podcast, Motley Fool hosts Ricky Mulvey and Dylan Lewis discuss: Why stadium sponsors generally don't outperform their peers or the market. See the 10 stocks *Stock Advisor returns as of 9/5/2023 This video was recorded on Sep. 03, 2023 Ricky Mulvey: What I've learned from this is I would not suggest setting up a hedge fund that is completely based on investing in companies based on stadium naming rights. The Motley Fool has positions in and recommends Absolute Software, Alphabet, Amazon.com, Apple, FedEx, and Monster Beverage.
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In this podcast, Motley Fool hosts Ricky Mulvey and Dylan Lewis discuss: Why stadium sponsors generally don't outperform their peers or the market. See the 10 stocks *Stock Advisor returns as of 9/5/2023 This video was recorded on Sep. 03, 2023 Ricky Mulvey: What I've learned from this is I would not suggest setting up a hedge fund that is completely based on investing in companies based on stadium naming rights. It's how well a company generates profit against its invested capital, book value of equity, debt, leases, that thing, but for a lot of these companies buying stadium, they're making fairly large or at least extremely visible long-term investments, and when I, let's say stuck my finger in the wind to see what was going on, just two of them in our group have higher return on invested capital numbers than the market average.
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Dylan Lewis: I'm Dylan Lewis, and that's Motley Fool Money's Ricky Mulvey. But a lot of companies do this. Are there any companies, when you think about this, that do it really well?
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13946.0
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2023-09-07 00:00:00 UTC
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Stocks Fall Before the Open as Inflation and Interest Rate Worries Return
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AAPL
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https://www.nasdaq.com/articles/stocks-fall-before-the-open-as-inflation-and-interest-rate-worries-return
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nan
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nan
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September S&P 500 futures (ESU23) are down -0.34%, and September Nasdaq 100 E-Mini futures (NQU23) are down -0.63% this morning after three major U.S. benchmark indices ended the regular session lower as an unexpected rise in a key U.S. services activity gauge bolstered speculation that the Federal Reserve would have to keep interest rates higher for longer.
In Wednesday’s trading session, the benchmark S&P 500 and tech-heavy Nasdaq 100 notched 1-week lows, and the blue-chip Dow posted a 1-1/2 week low. Apple Inc (AAPL) plunged over -3% and was among the top percentage losers on the Nasdaq 100 following a Wall Street Journal report stating that China had instructed government agencies to cease using the tech giant’s iPhone and other foreign electronic devices at work. Also, Lockheed Martin Corporation (LMT) slid more than -4% after the company cut the delivery outlook for its F-35 jets and delayed deliveries of its updated Technology Refresh 3 jets. In addition, Johnson & Johnson (JNJ) fell over -1% after HSBC initiated coverage of the stock with a Hold rating. On the bullish side, AeroVironment Inc (AVAV) surged more than +20% after the maker of combat drones and other unmanned systems reported upbeat Q1 results and raised its FY24 revenue guidance.
Economic data on Wednesday showed that the U.S. ISM services index unexpectedly rose to a 6-month high of 54.5 in August, stronger than expectations of 52.5. Also, the U.S. Trade Balance stood at -$65.00B in July, stronger than expectations of -$68.00B. At the same time, the U.S. August S&P Global composite PMI came in at 50.2, weaker than expectations of 50.4.
“The ISM Services Sector report underscores the resilience of the largest portion of the economy. Unfortunately, the prices-paid component moved in the wrong direction — similar to the higher prices paid in the manufacturing report — edging markedly higher. This is certainly not good news for a data-dependent Fed,” said Quincy Krosby, chief global strategist at LPL Financial.
Boston Fed President Susan Collins said Wednesday that policymakers will need to exercise patience as they assess economic data to determine their next course of action. “This phase of our policy cycle requires patience and holistic data assessment while we stay the course,” she said. However, she pointed out that if the improvement in inflation data is fleeting, “further tightening could be warranted.”
Meanwhile, U.S. rate futures have priced in a 7.0% probability of a 25 basis point rate increase at September’s monetary policy meeting and a 43.4% chance of a 25 basis point rate hike at November’s monetary policy meeting.
In other news, the Federal Reserve’s Beige Book report, released on Wednesday, indicated that economic activity was modest in July and August, with subdued job growth across the United States and a slowdown in price growth in most districts.
Today, all eyes are focused on U.S. Initial Jobless Claims data in a couple of hours. Economists, on average, forecast that Initial Jobless Claims will come in at 234K, compared to last week’s value of 228K.
Also, investors are likely to focus on U.S. Unit Labor Costs data, which came in at +3.3% q/q in the first quarter. Economists foresee the second-quarter figure to be +1.6% q/q.
U.S. Nonfarm Productivity data will come in today. Economists foresee this figure to stand at +3.7% q/q in the second quarter, compared to the first-quarter number of -1.2% q/q.
U.S. Crude Oil Inventories data will be reported today as well. Economists estimate this figure to be -2.064M, compared to last week’s value of -10.584M.
In addition, market participants will be looking toward speeches from New York Fed President John Williams and Atlanta Fed President Raphael Bostic.
In the bond markets, United States 10-year rates are at 4.281%, down -0.28%.
The Euro Stoxx 50 futures are up +0.09% this morning, clawing back early losses from weak German data. Gains in utility and construction stocks are leading the overall market higher. Eurostat’s final data showed Thursday that the Eurozone economy experienced meager growth in the second quarter, falling short of earlier projections due to stagnant domestic consumption and weakened exports. Separately, German industrial production fell again in July, offering fresh evidence of a slowdown in Europe’s largest economy. In corporate news, Direct Line Insurance Group Plc (DLG.LN) climbed over +17% after the British motor and home insurer projected better operating profit in 2024.
U.K.’s Halifax House Price Index, Germany’s Industrial Production, Eurozone’s GDP, and Eurozone’s Employment Change data were released today.
U.K. August Halifax House Price Index stood at -1.9% m/m and -4.6% y/y, weaker than expectations of -0.3% m/m and -3.5% y/y.
The German July Industrial Production came in at -0.8% m/m, weaker than expectations of -0.5% m/m.
Eurozone Employment Change arrived at +0.2% q/q and +1.3% y/y in the second quarter, compared to expectations of +0.2% q/q and +1.5% y/y.
Eurozone GDP has been reported at +0.1% q/q and +0.5% y/y in the second quarter, weaker than expectations of +0.3% q/q and +0.6% y/y.
Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -1.13%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.75%.
China’s Shanghai Composite today closed lower after trade data indicated continued economic weakness in the country, while the prospect of renewed Sino-U.S. tensions also weighed on sentiment. Customs data showed on Thursday that China’s imports and exports contracted at a rate slower than anticipated in August, but they remained near historic lows due to sluggish demand both domestically and abroad. Meanwhile, the chair of the House of Representatives committee on China stated on Wednesday that the U.S. Commerce Department should end all technology exports to Huawei and SMIC in light of the discovery of new chips in Huawei phones that could violate trade restrictions. On the ground of this, semiconductor stocks retreated on Thursday, with China’s top chipmaker Semiconductor Manufacturing International Corp slumping over -7%. Mainland property developers traded in Hong Kong also lost ground. In other news, four major state banks in China said Thursday they would start to lower interest rates on existing mortgages for first-home loans, bringing them down to the levels applicable at the time of home purchase.
“While the better-than-expected data came as a relief, more stimulus measures are needed to drive economic growth and lift market confidence,” UBS analysts wrote in a note.
The Chinese August Trade Balance has been reported at $68.36B, weaker than expectations of $73.90B.
The Chinese August Exports stood at -8.8% y/y, stronger than expectations of -9.2% y/y.
The Chinese August Imports came in at -7.3% y/y, stronger than expectations of -9.0% y/y.
Japan’s Nikkei 225 Stock Index closed lower today, snapping an eight-day winning streak as rising U.S. yields and concerns over a decelerating Chinese economy weighed on investor sentiment. Meanwhile, Bank of Japan Board Member Junko Nakagawa said that maintaining monetary easing is appropriate for the time being, especially given that the inflation target has not yet been met. In corporate news, computer-chip testing equipment maker Advantest plunged over -6% on Thursday, tracking an overnight drop in customer Nvidia. Also, NTN Corp dropped more than -5% after the ball-bearings manufacturer issued a zero-coupon convertible bond. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +4.38% to 17.89.
Pre-Market U.S. Stock Movers
Apple Inc (AAPL) fell over -2% in pre-market trading following reports that China aimed to extend the prohibition of Apple’s iPhones in sensitive government departments to government-backed agencies and state-owned enterprises.
WestRock Co (WRK) climbed more than +8% in pre-market trading following a report by the Wall Street Journal indicating that the company is engaged in talks regarding a potential merger with Europe’s Smurfit Kappa.
GameStop Corp (GME) soared over +6% in pre-market trading after the company reported better-than-expected Q2 results.
UiPath Inc (PATH) gained over +4% in pre-market trading after the company posted upbeat Q2 results and provided solid FY24 revenue guidance.
C3.ai Inc (AI) plunged over -9% in pre-market trading after the enterprise software company said it would not be profitable by the end of fiscal year 2024.
Sportsmans (SPWH) tumbled more than -14% in pre-market trading after reporting downbeat Q2 results.
Dell Technologies Inc (DELL) fell about -3% in pre-market trading after Barclays downgraded the stock to Underweight from Equal Weight.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Thursday - September 7th
DocuSign (DOCU), Toro (TTC), Guidewire (GWRE), Science Applications (SAIC), BRP Inc (DOOO), Smartsheet (SMAR), Braze (BRZE), ABM Industries (ABM), Korn Ferry (KFY), John Wiley&Sons (WLY), Semtech (SMTC), Methode Electronics (MEI), Planet Labs PBC (PL), G-III Apparel (GIII), Avid Bioservices (CDMO), Tsakos Energy (TNP), Secureworks (SCWX), Smith & Wesson (SWBI), Concrete Pumping A (BBCP), Zumiez (ZUMZ), Limoneira (LMNR).
More Stock Market News from Barchart
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Unusual Options Activity in Johnson & Johnson Post Its Kenvue Spinoff Highlights Its Value
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc (AAPL) plunged over -3% and was among the top percentage losers on the Nasdaq 100 following a Wall Street Journal report stating that China had instructed government agencies to cease using the tech giant’s iPhone and other foreign electronic devices at work. Pre-Market U.S. Stock Movers Apple Inc (AAPL) fell over -2% in pre-market trading following reports that China aimed to extend the prohibition of Apple’s iPhones in sensitive government departments to government-backed agencies and state-owned enterprises. Eurostat’s final data showed Thursday that the Eurozone economy experienced meager growth in the second quarter, falling short of earlier projections due to stagnant domestic consumption and weakened exports.
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Apple Inc (AAPL) plunged over -3% and was among the top percentage losers on the Nasdaq 100 following a Wall Street Journal report stating that China had instructed government agencies to cease using the tech giant’s iPhone and other foreign electronic devices at work. Pre-Market U.S. Stock Movers Apple Inc (AAPL) fell over -2% in pre-market trading following reports that China aimed to extend the prohibition of Apple’s iPhones in sensitive government departments to government-backed agencies and state-owned enterprises. In other news, the Federal Reserve’s Beige Book report, released on Wednesday, indicated that economic activity was modest in July and August, with subdued job growth across the United States and a slowdown in price growth in most districts.
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Pre-Market U.S. Stock Movers Apple Inc (AAPL) fell over -2% in pre-market trading following reports that China aimed to extend the prohibition of Apple’s iPhones in sensitive government departments to government-backed agencies and state-owned enterprises. Apple Inc (AAPL) plunged over -3% and was among the top percentage losers on the Nasdaq 100 following a Wall Street Journal report stating that China had instructed government agencies to cease using the tech giant’s iPhone and other foreign electronic devices at work. However, she pointed out that if the improvement in inflation data is fleeting, “further tightening could be warranted.” Meanwhile, U.S. rate futures have priced in a 7.0% probability of a 25 basis point rate increase at September’s monetary policy meeting and a 43.4% chance of a 25 basis point rate hike at November’s monetary policy meeting.
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Apple Inc (AAPL) plunged over -3% and was among the top percentage losers on the Nasdaq 100 following a Wall Street Journal report stating that China had instructed government agencies to cease using the tech giant’s iPhone and other foreign electronic devices at work. Pre-Market U.S. Stock Movers Apple Inc (AAPL) fell over -2% in pre-market trading following reports that China aimed to extend the prohibition of Apple’s iPhones in sensitive government departments to government-backed agencies and state-owned enterprises. Economic data on Wednesday showed that the U.S. ISM services index unexpectedly rose to a 6-month high of 54.5 in August, stronger than expectations of 52.5.
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13947.0
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2023-09-07 00:00:00 UTC
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GLOBAL MARKETS-Stocks stumble as 'dollar juggernaut' on a roll
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-stumble-as-dollar-juggernaut-on-a-roll
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nan
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nan
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By Tom Westbrook
SINGAPORE, Sept 8 (Reuters) - Asia's stockmarkets dipped on Friday, with tech shares tumbling on deepening Sino-U.S. tensions, while the dollar was set to seal its longest winning streak in nine years as investors braced for U.S. interest rates to stay higher for longer.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.2% in early trade and is down 1.4% for the week. Hong Kong markets were closed for the morning due to storms lashing the city. Japan's Nikkei .N225 fell 0.8%.
Some $200 billion has been wiped from Apple's AAPL.O market capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of chip suppliers in Asia.
Shares in Taiwan's TSMC 2330.TW, a big Apple supplier, fell 1% at the open. Shares in South Korea's SK Hynix 000660.KS, whose chips some users have found in China's Huawei Technologies' new phone, fell as much as 4.5% to a two-week low.
Tokyo Electron 8035.T shares dropped 4.3%. .KS.T
"China’s partial ban on Apple products put trade wars and U.S.-China decoupling back on the agenda," said Capital.com analyst Kyle Rodda. "The ban is narrow in scope...however, it illustrated the two-way costs and risks of de-coupling."
U.S. suppliers' shares had fallen overnight and helped drag the S&P 500 .SPX 0.3% lower and the Nasdaq .IXIC down by 0.9%. S&P 500 futures ESc1 were flat in Asia on Friday.
The selling also came while tech stocks have been under extra pressure from U.S. yields that have been rising on bets that U.S. interest rates are likely to linger at 20-year highs.
That in turn has unleashed the dollar, which is up for an eighth straight week against a basket of currencies =USD, a rally that has carried the U.S. currency index more than 5% higher.
Dollar gains have pushed the Chinese yuan CNY=CFXS to a 16-year low and have prompted a step up in rhetoric from Japanese policymakers growing uncomfortable with the yen's slide.
"Given challenges facing China, and more signs of a re-tightening of the U.S. jobs market, it is not surprising that the dollar is finding support, allowing the 'dollar juggernaut' to continue its rampaging run," analysts at ANZ Bank said in a note.
The euro EUR=EBS is down 0.5% this week and traded steady at $1.0715 in Asia with investors reckoning a hold is more likely than a hike from the European Central Bank next week. 0#ECBWATCH
The yen JPY=EBS has found new 10-month lows and, at 147.13 per dollar is heading towards the vicinity of 150, where traders see high risks of authorities stepping in with support.
Japan's top currency diplomat Masato Kanda said on Wednesday that authorities won't rule out any option to clamp down on "speculative" moves, while chief cabinet secretary Hirokazy Matsuno said the government was watching with "urgency".
The Australian dollar AUD=D3 is down more than 1% on the week and traded at $0.6384 on Friday. Benchmark 10-year U.S. Treasury yields US10YT=RR are up 5.5 basis points to 4.22% this week. Two-year yields US2YT=RR are up 6.6 bps to 4.93%.
Brent crude LCOc1 prices are up this week, but gains on recently robust U.S. data have been tempered by softening indicators of demand in Europe and China. Brent futures were last steady at $89.60 a barrel, up 1.2% for the week.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
Asian stock markets https://tmsnrt.rs/2zpUAr4
(Additional reporting by Heekyong Yang in Seoul Editing by Shri Navaratnam)
((tom.westbrook@tr.com; +65 6973 8284;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some $200 billion has been wiped from Apple's AAPL.O market capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of chip suppliers in Asia. By Tom Westbrook SINGAPORE, Sept 8 (Reuters) - Asia's stockmarkets dipped on Friday, with tech shares tumbling on deepening Sino-U.S. tensions, while the dollar was set to seal its longest winning streak in nine years as investors braced for U.S. interest rates to stay higher for longer. Japan's top currency diplomat Masato Kanda said on Wednesday that authorities won't rule out any option to clamp down on "speculative" moves, while chief cabinet secretary Hirokazy Matsuno said the government was watching with "urgency".
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Some $200 billion has been wiped from Apple's AAPL.O market capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of chip suppliers in Asia. Shares in Taiwan's TSMC 2330.TW, a big Apple supplier, fell 1% at the open. The euro EUR=EBS is down 0.5% this week and traded steady at $1.0715 in Asia with investors reckoning a hold is more likely than a hike from the European Central Bank next week.
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Some $200 billion has been wiped from Apple's AAPL.O market capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of chip suppliers in Asia. By Tom Westbrook SINGAPORE, Sept 8 (Reuters) - Asia's stockmarkets dipped on Friday, with tech shares tumbling on deepening Sino-U.S. tensions, while the dollar was set to seal its longest winning streak in nine years as investors braced for U.S. interest rates to stay higher for longer. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.2% in early trade and is down 1.4% for the week.
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Some $200 billion has been wiped from Apple's AAPL.O market capitalisation in two days on reports of China curbing iPhone use by state employees and on Friday protectionism fears were weighing on shares of chip suppliers in Asia. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.2% in early trade and is down 1.4% for the week. Shares in Taiwan's TSMC 2330.TW, a big Apple supplier, fell 1% at the open.
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13948.0
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2023-09-06 00:00:00 UTC
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NVDA Stock: Nvidia Is Becoming the New Bitcoin
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AAPL
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https://www.nasdaq.com/articles/nvda-stock%3A-nvidia-is-becoming-the-new-bitcoin
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This article is an excerpt from the InvestorPlace Digest newsletter. To get news like this delivered straight to your inbox, click here.
Nvidia’s (NASDAQ:NVDA) second-quarter results on Aug. 23 should have been a triumph for AI enthusiasts. The Silicon Valley chipmaker beat revenue estimates by 20.3% and net profits by 29.5%. These stunning figures would ordinarily send any stock soaring. Or at least give bulls some hope for future earnings growth.
But investors would have been disappointed on both counts. Nvidia’s stock rose less than 1% over the following week — a tiny fraction of what bulls might have expected. And instead of future developments, Nvidia’s management announced a $25 billion stock buyback program. These programs are typically designed to shrink companies and boost earnings per share once growth begins to slow. Apple (NASDAQ:AAPL), for instance, started its share buyback program in 2013 just as iPhone profits reached a downward inflection point.
Instead, the real winners of Nvidia’s boom have been options traders… or at least its market makers. These speculators often care little about what an underlying company does. As long as the underlying asset promises to move in a predictable direction, these gamblers are more than happy to buy in. Activity in Nvidia’s options has risen eightfold since 2021, and InvestorPlace.com contributor Michael Gayed has gone as far as to call Nvidia a “source of liquidity” — a term usually reserved for either the Federal Reserve or “The Bank of Mom and Dad.”
This isn’t the first time a new technology has become a zero-sum betting game. In 2017, Bitcoin (BTC-USD) became a de facto casino after its futures were listed on the highly liquid Chicago Mercantile Exchange. Over $50 trillion in Bitcoin has since changed hands despite the crypto’s inability to find many real-world uses. Japanese real estate in the 1990s and Chinese tech stocks of the 2000s share many similarities. At the height of the 2008 and 2014 Chinese stock market bubbles, many day traders admitted to only knowing their investments by their six-digit tickers. As the mystique of artificial intelligence grows, Nvidia’s shares risk falling into the same trap.
Castles in the Sky
First, it’s important to note that Nvidia has some significant differences from cryptocurrencies. The former is a business that generates cash flow; analysts expect Nvidia to generate up to $30 billion in free cash flow this year. The chipmaker is also a picks-and-shovels play on artificial intelligence, a field with fewer established alternatives to crypto payments. Meanwhile, Bitcoin and other cryptos typically generate no internal cash flows. (Cash generated from staking is more like money-lending). Real-world adoption of these coins also remains limited to a handful of companies and super-fans.
But Nvidia and Bitcoin also share a lot in common.
Consider valuation. Today, Nvidia’s $1.13 trillion valuation represents a 240X multiple of trailing earnings, making it the most expensive tech stock based on normalized figures. Even if the chipmaker raises its net income 8X from $4.37 billion to $37.96 billion by fiscal 2026, the company would have to keep increasing that figure by 7.3% per year for the next two decades to justify its current share price of $470.
As for its lofty $622 Wall Street price target? Nvidia will have to generate $145 billion of free cash flow by 2042 to justify that valuation, 2.5X more than what Microsoft (NASDAQ:MSFT) makes today.
There’s also growing evidence that traders are piling into NVDA stock to gamble. According to Fintel, net gamma exposure to Nvidia’s stock reached as high as $636.61 earlier this week after speculators bought an enormous number of bullish call options. For every 1% Nvidia’s stock price rises, market makers will now lose roughly $636.61 million, compared to $0 in 2022. The entire market capitalization of Nvidia now also turns over once every 30 days, compared to 65-80 days in previous years.
That makes Nvidia more like Bitcoin than a promising semiconductor stock. As Josh Enomoto notes on our free news site, InvestorPlace.com, target prices are getting driven ever higher by credulous Wall Street analysts.
Management Knows Nvidia Isn’t Worth $1.13 Trillion
Nvidia’s management clearly understands the disconnect. During the company’s Q2earnings call chief financial officer Colette Kress announced that the board approved an additional $25 billion for stock repurchases to add to its remaining $4 billion authorization. The firm also returned roughly $3.4 billion to shareholders during the quarter through share repurchases and dividends. To them, it’s more important to return cash to shareholders at high valuations than it is to hold onto a large war chest.
This tells us that management has little use for the excess cash that the AI gold rush is creating. Nvidia is a fabless chip designer that outsources its production to third-party providers. Unlike Intel (NASDAQ:INTC), Nvidia does not need to spend billions on creating “fab” chip factories. It also sees little potential to acquire future growth, like what Advanced Micro Devices (NASDAQ:AMD) did in its $49 billion acquisition of networking giant Xilinx.
But speculators seem to care little for such truths. To them, Nvidia is an investment in AI. And the only direction it can go is up.
According to data from Refinitiv, open interest for bullish call options has exploded in recent weeks. The number of $500 calls due January 2024 has risen more than 175%, even as Nvidia’s stock has flatlined. These risky bets pay nothing unless the stock rises above $500 by early next year.
Bitcoin saw similarly bullish bets during its 2021 run. Futures contracts for the cryptocurrency traded as high as $65,900 toward the bubble’s peak as investors continued expecting more gains. That story ended as most bubbles do.
What Is Nvidia Stock Worth?
Realistic estimates now peg Nvidia’s justified value at around $350 per share. This assumes that its free cash flow peaks in 2026 at $52.5 billion before declining to $42.5 billion by 2046 as competitors eat away at the lower end of the market. These figures are still well above Intel’s peak earnings power in the 2010s.
There’s also a great deal of potential downside. If companies like Microsoft and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) successfully develop in-house GPUs, Nvidia’s free cash flow could recede to the $5 billion to $10 billion range, sending the stock’s justified value into the $200 range. And if free cash flow collapses back to 2020-22 levels, NVDA stock could sink as low as $110.
Of course, none of this matters in the short term. The chipmaker is riding a tidal wave of positive sentiment, which means its stock could rise to $600… $800… $1,000… or more. Nothing stopped Bitcoin from peaking at a $1.27 trillion valuation, or altcoins from rising even further. We know from history that speculative assets tend to keep going up in the short run.
But when the AI hangover eventually comes, we can expect financial historians to ask the age-old question:
“What were they thinking?”
That’s why investors should view Nvidia’s near-$500 price tag with deep suspicion. Companies like Qualcomm (NASDAQ:QCOM) and Intel trade for roughly a tenth of its valuation from a price-to-earnings standpoint. And though Nvidia is winning the AI revolution so far, history also tells us that no castle in the sky has ever stayed aloft forever.
As of this writing, Tom Yeung held a LONG position in GOOG, GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Tom Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.
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The post NVDA Stock: Nvidia Is Becoming the New Bitcoin appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ:AAPL), for instance, started its share buyback program in 2013 just as iPhone profits reached a downward inflection point. Today, Nvidia’s $1.13 trillion valuation represents a 240X multiple of trailing earnings, making it the most expensive tech stock based on normalized figures. According to Fintel, net gamma exposure to Nvidia’s stock reached as high as $636.61 earlier this week after speculators bought an enormous number of bullish call options.
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Apple (NASDAQ:AAPL), for instance, started its share buyback program in 2013 just as iPhone profits reached a downward inflection point. And instead of future developments, Nvidia’s management announced a $25 billion stock buyback program. The former is a business that generates cash flow; analysts expect Nvidia to generate up to $30 billion in free cash flow this year.
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Apple (NASDAQ:AAPL), for instance, started its share buyback program in 2013 just as iPhone profits reached a downward inflection point. The former is a business that generates cash flow; analysts expect Nvidia to generate up to $30 billion in free cash flow this year. Nvidia will have to generate $145 billion of free cash flow by 2042 to justify that valuation, 2.5X more than what Microsoft (NASDAQ:MSFT) makes today.
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Apple (NASDAQ:AAPL), for instance, started its share buyback program in 2013 just as iPhone profits reached a downward inflection point. Meanwhile, Bitcoin and other cryptos typically generate no internal cash flows. Nvidia will have to generate $145 billion of free cash flow by 2042 to justify that valuation, 2.5X more than what Microsoft (NASDAQ:MSFT) makes today.
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13949.0
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2023-09-06 00:00:00 UTC
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Wall St slides as economic data stokes inflation worries, Apple drags
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AAPL
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https://www.nasdaq.com/articles/wall-st-slides-as-economic-data-stokes-inflation-worries-apple-drags
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nan
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nan
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By Sinéad Carew and Shristi Achar A
Sept 6 (Reuters) - Wall Street stocks fell on Wednesday after stronger-than-expected services sector data fueled concerns of sticky inflation and interest rates staying higher for longer, while weakness in Apple Inc shares further weighed down the indexes.
The Institute for Supply Management (ISM) said on Wednesday its non-manufacturing Purchasing Managers' Index rose to 54.5 last month against expectations of 52.5, while a gauge of prices paid by service-sector businesses for inputs increased.
Traders' bets that the Federal Reserve would pause hiking interest rates at its Sept. 20-21 meeting were 91%, while bets on a pause in November slipped to 46.8% from nearly 57% before the data, the CME FedWatch Tool showed.
"The stronger-than-expected ISM services data shows that investors are still not very skilled at reading the post-pandemic tea leaves," said Carol Schleif, chief investment officer at BMO's family office in Minneapolis.
While investors have been hoping for interest rate cuts soon, Schleif said the data shows a strong economy and inflation that is not coming down "as fast as the Fed would need to start cutting rates any time in the foreseeable future."
Earlier in the day Boston Fed President Susan Collins stressed the need for the central bank to "proceed carefully" with its next monetary policy steps.
The Dow Jones Industrial Average .DJI fell 235.55 points, or 0.68%, to 34,406.42. The S&P 500 .SPX lost 40.09 points, or 0.89%, at 4,456.74 and the Nasdaq Composite .IXIC dropped 179.32 points, or 1.28%, to 13,841.63.
Of the S&P 500's 11 major industry sectors technology .SPLRCT was the biggest decliner, down 1.6%. Defensive utilities .SPLRCU was the only gainer, up 0.1%.
AppleAAPL.O was the biggest drag across the three major indexes, down 3.7% after a report that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work.
Other megacaps also declined, with Tesla TSLA.O, Amazon.com AMZN.O and Nvidia NVDA.O down between 1.6% and 3.8% as yields on the 10-year US10YT=RR and the two-year US2YT=RR U.S. Treasuries moved higher after the economic data.
The S&P 500 barely reacted after the Fed's "Beige Book" snapshot of the U.S. economy was released, a week ahead of the keenly awaited August inflation data and the Fed's rate decision on Sept. 20.
The report showed "modest" U.S. economic growth in recent weeks while job growth was "subdued," and inflation slowed in most parts of the country.
A recent uptick in oil prices has also stoked fears of persistent inflationary pressures that could compel the Federal Reserve to maintain its hawkish stance on interest rates.
Lockheed MartinLMT.N dropped 4.5% after the U.S. weapons maker trimmed the delivery outlook for its F-35 jets.
RokuROKU.O climbed 1.9% after the video-streaming company said it would reduce its workforce by about 10% and limit new hiring.
Declining issues outnumbered advancers on the NYSE by a 2.38-to-1 ratio; on Nasdaq, a 2.10-to-1 ratio favored decliners.
The S&P 500 posted 3 new 52-week highs and 25 new lows; the Nasdaq Composite recorded 33 new highs and 146 new lows.
(Reporting by Sinéad Carew in New York, Shristi Achar A and Amruta Khandekar in Bengaluru Editing by Vinay Dwivedi and Richard Chang)
((sinead.carew@thomsonreuters.com; +13322191897))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AppleAAPL.O was the biggest drag across the three major indexes, down 3.7% after a report that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. By Sinéad Carew and Shristi Achar A Sept 6 (Reuters) - Wall Street stocks fell on Wednesday after stronger-than-expected services sector data fueled concerns of sticky inflation and interest rates staying higher for longer, while weakness in Apple Inc shares further weighed down the indexes. Earlier in the day Boston Fed President Susan Collins stressed the need for the central bank to "proceed carefully" with its next monetary policy steps.
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AppleAAPL.O was the biggest drag across the three major indexes, down 3.7% after a report that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. By Sinéad Carew and Shristi Achar A Sept 6 (Reuters) - Wall Street stocks fell on Wednesday after stronger-than-expected services sector data fueled concerns of sticky inflation and interest rates staying higher for longer, while weakness in Apple Inc shares further weighed down the indexes. "The stronger-than-expected ISM services data shows that investors are still not very skilled at reading the post-pandemic tea leaves," said Carol Schleif, chief investment officer at BMO's family office in Minneapolis.
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AppleAAPL.O was the biggest drag across the three major indexes, down 3.7% after a report that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. By Sinéad Carew and Shristi Achar A Sept 6 (Reuters) - Wall Street stocks fell on Wednesday after stronger-than-expected services sector data fueled concerns of sticky inflation and interest rates staying higher for longer, while weakness in Apple Inc shares further weighed down the indexes. While investors have been hoping for interest rate cuts soon, Schleif said the data shows a strong economy and inflation that is not coming down "as fast as the Fed would need to start cutting rates any time in the foreseeable future."
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AppleAAPL.O was the biggest drag across the three major indexes, down 3.7% after a report that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. While investors have been hoping for interest rate cuts soon, Schleif said the data shows a strong economy and inflation that is not coming down "as fast as the Fed would need to start cutting rates any time in the foreseeable future." The S&P 500 .SPX lost 40.09 points, or 0.89%, at 4,456.74 and the Nasdaq Composite .IXIC dropped 179.32 points, or 1.28%, to 13,841.63.
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13950.0
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2023-09-06 00:00:00 UTC
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China Bans IPhone Use For Government Officials
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AAPL
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https://www.nasdaq.com/articles/china-bans-iphone-use-for-government-officials
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nan
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nan
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(RTTNews) - The Chinese government has issued a ban on the use of iPhones by central government officials, as reported by the Wall Street Journal.
Citing undisclosed sources, the report says that China's primary goal is to reduce its dependency on foreign technology, improve cybersecurity, as well as safeguard sensitive data from potential leaks to foreign governments.
According to the Wall Street Journal, the instruction has been passed on to employees through chat groups and meetings by their respective managers.
Although the ban covers all foreign-made smartphones, its impact is particularly pronounced on Apple, given that China represents one of the tech giant's largest markets, accounting for approximately 19% of its total revenue.
Amid ongoing trade tensions, this iPhone ban among government officials may also be seen as a form of retaliation against similar actions taken by the United States concerning Chinese technology.
CNN reports that, even before this formal ban, Chinese officials had been informally adhering to an unwritten rule of abstaining from using iPhones for several months.
Last June, CNN reported that certain Chinese government ministries had prohibited Tesla vehicles from entering their premises, citing concerns over security.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although the ban covers all foreign-made smartphones, its impact is particularly pronounced on Apple, given that China represents one of the tech giant's largest markets, accounting for approximately 19% of its total revenue. Amid ongoing trade tensions, this iPhone ban among government officials may also be seen as a form of retaliation against similar actions taken by the United States concerning Chinese technology. Last June, CNN reported that certain Chinese government ministries had prohibited Tesla vehicles from entering their premises, citing concerns over security.
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(RTTNews) - The Chinese government has issued a ban on the use of iPhones by central government officials, as reported by the Wall Street Journal. According to the Wall Street Journal, the instruction has been passed on to employees through chat groups and meetings by their respective managers. Amid ongoing trade tensions, this iPhone ban among government officials may also be seen as a form of retaliation against similar actions taken by the United States concerning Chinese technology.
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(RTTNews) - The Chinese government has issued a ban on the use of iPhones by central government officials, as reported by the Wall Street Journal. Citing undisclosed sources, the report says that China's primary goal is to reduce its dependency on foreign technology, improve cybersecurity, as well as safeguard sensitive data from potential leaks to foreign governments. Amid ongoing trade tensions, this iPhone ban among government officials may also be seen as a form of retaliation against similar actions taken by the United States concerning Chinese technology.
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(RTTNews) - The Chinese government has issued a ban on the use of iPhones by central government officials, as reported by the Wall Street Journal. Citing undisclosed sources, the report says that China's primary goal is to reduce its dependency on foreign technology, improve cybersecurity, as well as safeguard sensitive data from potential leaks to foreign governments. Although the ban covers all foreign-made smartphones, its impact is particularly pronounced on Apple, given that China represents one of the tech giant's largest markets, accounting for approximately 19% of its total revenue.
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13951.0
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2023-09-06 00:00:00 UTC
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Stocks Fall as Economic Strength May Keep Interest Rates Higher for Longer
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AAPL
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https://www.nasdaq.com/articles/stocks-fall-as-economic-strength-may-keep-interest-rates-higher-for-longer
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) Wednesday closed down -0.70%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.57%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.88%.
Stocks on Wednesday posted moderate losses, with the S&P 500 and Nasdaq 100 posting 1-week lows and the Dow Jones Industrials posting a 1-1/2 week low. Stocks opened lower Wednesday on negative carryover from a fall in the Euro Stoxx 50 to a 1-1/2 week low on weaker-than-expected Eurozone economic news.
Stocks extended their losses as bond yields jumped after Wednesday’s Aug ISM services report expanded more than expected, bolstering speculation the Fed will keep interest rates higher for longer. The U.S. Aug ISM services index unexpectedly rose +1.8 to a 6-month high of 54.5, stronger than expectations of a decline to 52.5.
The U.S. Jul trade deficit widened to -$65.0 billion from -$63.7 billion in June, a smaller deficit than expectations of -$68.0 billion.
The Fed Beige Book was neutral for stocks as it stated U.S. economic activity was modest during July and August, and most districts said price growth slowed overall. Also, job growth was subdued across the U.S. during the survey period.
Boston Fed President Collins said it's "too early" to say if inflation is on a sustained path to 2%, and further tightening may be warranted depending on the data. She added that the Fed will "need to hold rates at restrictive levels for some time" as while demand is moderating, it continues to outpace supply, adding to price pressures.
The markets are discounting the odds at 7% for a +25 bp rate hike at the September 20 FOMC meeting and 50% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields Wednesday moved higher. The 10-year T-note yield rose to a 2-week high of 4.302% and finished up +2.8 bp at 4.288%. The 10-year German bund yield rose to a 2-week high of 2.664% and finished up +4.2 bp at 2.653%. The 10-year UK gilt yield rose to a 2-week high of 4.559% and finished up +0.8 bp at 4.533%.
Overseas stock markets Wednesday settled mixed. The Euro Stoxx 50 closed down -0.72%. China’s Shanghai Composite Index closed up +0.12%. Japan’s Nikkei Stock Index closed up +0.62%.
Eurozone July retail sales fell -0.2% m/m, right on expectations and the first decline in four months.
German July factory orders fell -11.7% m/m, weaker than expectations of -4.3% m/m and the biggest decline in 3-1/4 years.
ECB Governing Council member Kazimir said the ECB needs to raise interest rates one more time to make sure inflation returns to 2%, and a September rate hike is "preferable" to a later increase.
ECB Governing Council member Knot said investors betting against an ECB rate hike next week are "maybe" underestimating the likelihood of it happening.
Today’s stock movers…
Apple (AAPL) closed down more than -3%, leading losers in the Dow Jones Industrials after the Wall Street Journal reported that Chinese government agencies had barred staff from using the iPhone and other foreign-branded devices at work. Losses in Apple accelerated on technical selling after the stock fell below its 50-day moving average.
MarketAxess Holdings (MKTX) closed down more than -5% after Morgan Stanley and Keefe Bruyette & Woods said overall average daily credit trading volume in August tracked below estimates.
Albemarle (ALB) closed down more than -5% after global lithium prices fell -14% m/m in August. Lithium products account for about 70% of the company’s total revenue.
Lockheed Martin (LMT) closed down more than -4% after it pushed back the delivery timing of the new F-35 jet to April 2024 from this December due to testing issues.
Nvidia (NVDA) closed down more than -3% after Research Affiliates said the stock is “a textbook story of a Big Market Delusion,” and with shares trading around 110 times earnings, the stock is priced beyond perfection.
Regional bank stocks retreated Wednesday and weighed on the overall market. Comerica (CMA) closed down more than -4%. Also, Zions Bancorp (ZION) and KeyCorp (KEY) closed down more than -3%. In addition, Citizens Financial Group (CFG), Huntington Bancshares (HBAN), and Truist Financial (TFC) closed down more than -2%.
Southwest Airlines (LUV) closed down more than -2% after it said that due to surging jet fuel costs, revenue for each seat flown mile would fall -5% to -7% from a year earlier compared with an earlier outlook for a drop of -3% to -7%.
Tesla (TSLA) closed down more than -1% after Indonesian Coordinating Maritime Affairs and Investment Minister Panjaitan said Tesla CEO Musk is concerned about the state of the global economy and possible overcapacity in the EV market and shelved expansion plans in Indonesia.
Gilead Sciences (GILD) closed down more than -1% after HSBC initiated coverage of the stock with a recommendation of reduce and a price target of $71.
Dexcom (DXCM) closed up more than +6% to lead gainers in the S&P 500 and Nasdaq 100 after Jeffries said the use of obesity drugs appears to increase the use of type 2 diabetes continuous glucose monitors, which Dexcom manufactures.
Zimmer Biomet Holdings (ZBH) closed up more than +4% after CEO Tornos said he sees demand for GLP-a weight-loss drugs as “definitely a tailwind” for the company in the short term.
Salesforce (CRM) closed up more than +1% to lead gainers in the Dow Jones Industrials after it said it added new artificial intelligence (AI) capabilities and automation improvements.
AeroVironment (AVAV) closed up more than +20% after reporting Q1 revenue of $152.3 million, better than the consensus of $128.5 million, and raising its 2024 revenue forecast to $635 million-$675 million from a previous forecast of $630 million-$660 million, stronger than the consensus of $656 million.
NexGen Healthcare (NXGN) closed up more than +14% after Thoma Bravo agreed to acquire the company for $23.95 a share.
Trade Desk (TTD) closed up more than +2% after William Blair initiated coverage on the stock with an outperform recommendation.
Nasdaq Inc (NDAQ) closed up more than +1% after reporting August equity options volume rose +8.8% y/y to 298 million contracts.
Across the markets…
December 10-year T-notes (ZNZ23) on Wednesday closed down -8.5 ticks, and the 10-year T-note yield rose +2.8 bp to 4.288%. Dec T-notes Wednesday gave up an early advance and fell to a 1-1/2 week low, and the 10-year T-note yield rose to a 2-week high of 4.302% on stronger-than-expected U.S. economic news after the Aug ISM services index unexpectedly expanded by the most in 6 months.
Also, comments Wednesday from Boston Fed President Collins weighed on T-note prices when she said it is "too early" to say if inflation is on a sustained path to 2% and further tightening may be warranted depending on the data. In addition, an increase in inflation expectations weighed on T-notes after the 10-year breakeven inflation rate Wednesday rose to a 1-week high of 2.33%.
More Stock Market News from Barchart
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Unusual Options Activity in Johnson & Johnson Post Its Kenvue Spinoff Highlights Its Value
3 Hot Stocks Under $10 for Your September Watchlist
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Today’s stock movers… Apple (AAPL) closed down more than -3%, leading losers in the Dow Jones Industrials after the Wall Street Journal reported that Chinese government agencies had barred staff from using the iPhone and other foreign-branded devices at work. Stocks extended their losses as bond yields jumped after Wednesday’s Aug ISM services report expanded more than expected, bolstering speculation the Fed will keep interest rates higher for longer. MarketAxess Holdings (MKTX) closed down more than -5% after Morgan Stanley and Keefe Bruyette & Woods said overall average daily credit trading volume in August tracked below estimates.
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Today’s stock movers… Apple (AAPL) closed down more than -3%, leading losers in the Dow Jones Industrials after the Wall Street Journal reported that Chinese government agencies had barred staff from using the iPhone and other foreign-branded devices at work. Stocks extended their losses as bond yields jumped after Wednesday’s Aug ISM services report expanded more than expected, bolstering speculation the Fed will keep interest rates higher for longer. AeroVironment (AVAV) closed up more than +20% after reporting Q1 revenue of $152.3 million, better than the consensus of $128.5 million, and raising its 2024 revenue forecast to $635 million-$675 million from a previous forecast of $630 million-$660 million, stronger than the consensus of $656 million.
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Today’s stock movers… Apple (AAPL) closed down more than -3%, leading losers in the Dow Jones Industrials after the Wall Street Journal reported that Chinese government agencies had barred staff from using the iPhone and other foreign-branded devices at work. What you need to know… The S&P 500 Index ($SPX) (SPY) Wednesday closed down -0.70%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.57%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.88%. Across the markets… December 10-year T-notes (ZNZ23) on Wednesday closed down -8.5 ticks, and the 10-year T-note yield rose +2.8 bp to 4.288%.
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Today’s stock movers… Apple (AAPL) closed down more than -3%, leading losers in the Dow Jones Industrials after the Wall Street Journal reported that Chinese government agencies had barred staff from using the iPhone and other foreign-branded devices at work. The U.S. Aug ISM services index unexpectedly rose +1.8 to a 6-month high of 54.5, stronger than expectations of a decline to 52.5. Dec T-notes Wednesday gave up an early advance and fell to a 1-1/2 week low, and the 10-year T-note yield rose to a 2-week high of 4.302% on stronger-than-expected U.S. economic news after the Aug ISM services index unexpectedly expanded by the most in 6 months.
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13952.0
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2023-09-06 00:00:00 UTC
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GLOBAL MARKETS-Stocks fall, dollar and yields up after US services data
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-fall-dollar-and-yields-up-after-us-services-data
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nan
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nan
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By Caroline Valetkevitch
NEW YORK, Sept 6 (Reuters) - World stock indexes fell while the benchmark U.S. Treasury yield rose and the U.S. dollar hit its highest in six months on Wednesday after stronger-than-expected U.S. services sector data suggested inflation pressures remain.
Weighing heavily on Wall Street stock indexes, shares of Apple AAPL.O fell 3.6% after the Wall Street Journal reported, citing people familiar with the matter, that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work.
The Institute for Supply Management (ISM) said its non-manufacturing PMI rose in August, with new orders firming and businesses paying higher prices for inputs.
Some investors said the data may add to signs that interest rates could remain elevated for longer. The U.S. Federal Reserve is still expected to pause in its rate hikes when it meets later this month.
Also on Wednesday, Fed Bank of Boston President Susan Collins said that while there are signs of progress in cooling inflation, now is a time for the central bank to proceed carefully when it comes to its next monetary policy steps.
The Nasdaq ended more than 1% lower, leading declines on Wall Street. Technology .SPLRCT was down the most among major S&P 500 sectors.
The Dow Jones Industrial Average .DJI fell 198.78 points, or 0.57%, to 34,443.19, the S&P 500 .SPX lost 31.35 points, or 0.70%, to 4,465.48 and the Nasdaq Composite .IXIC dropped 148.48 points, or 1.06%, to 13,872.47.
The pan-European STOXX 600 index .STOXX ended down 0.6% and MSCI's gauge of stocks across the globe .MIWD00000PUS also shed 0.6%.
The yield on the benchmark U.S. 10-year Treasury note rose 3 basis points to 4.298%. The yield has risen about 21 basis points over the past three sessions, its biggest three-day gain about a month.
In other data, manufacturing activity in Germany, Britain and the euro zone declined, while their service sectors fell into contraction territory.
Also, the U.S. central bank's latest "Beige Book" summary of surveys and interviews released on Wednesday showed economic growth was "modest" in recent weeks while job growth was "subdued" and inflation slowed in most parts of the country.
"The two big challenges facing the Fed right now are the risks that inflation could become entrenched and the risks that the consumer could falter when excess savings dry up," Jeffrey Roach, chief economist at LPL Financial, wrote in a note.
The dollar index rose to a fresh six-month high of 105.03 =USD, and was last at 104.85, up 0.1%, with the euro EUR= up 0.03% to $1.0723.
Oil prices reversed early declines to end higher, as traders anticipated further draws on U.S. crude oil inventory.
Brent crude futures LCOc1 settled up 56 cents at $90.60 a barrel while U.S. crude CLc1 futures settled up 85 cents at $87.54.
Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
(Reporting by Caroline Valetkevitch; additional reporting by Gertrude Chavez-Dreyfuss in New York and Nell Mackenzie in London and Kane Wu; Editing by Edmund Klamann, Sam Holmes, Will Dunham and Sharon Singleton)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Weighing heavily on Wall Street stock indexes, shares of Apple AAPL.O fell 3.6% after the Wall Street Journal reported, citing people familiar with the matter, that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. By Caroline Valetkevitch NEW YORK, Sept 6 (Reuters) - World stock indexes fell while the benchmark U.S. Treasury yield rose and the U.S. dollar hit its highest in six months on Wednesday after stronger-than-expected U.S. services sector data suggested inflation pressures remain. The Institute for Supply Management (ISM) said its non-manufacturing PMI rose in August, with new orders firming and businesses paying higher prices for inputs.
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Weighing heavily on Wall Street stock indexes, shares of Apple AAPL.O fell 3.6% after the Wall Street Journal reported, citing people familiar with the matter, that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. By Caroline Valetkevitch NEW YORK, Sept 6 (Reuters) - World stock indexes fell while the benchmark U.S. Treasury yield rose and the U.S. dollar hit its highest in six months on Wednesday after stronger-than-expected U.S. services sector data suggested inflation pressures remain. The yield on the benchmark U.S. 10-year Treasury note rose 3 basis points to 4.298%.
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Weighing heavily on Wall Street stock indexes, shares of Apple AAPL.O fell 3.6% after the Wall Street Journal reported, citing people familiar with the matter, that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. By Caroline Valetkevitch NEW YORK, Sept 6 (Reuters) - World stock indexes fell while the benchmark U.S. Treasury yield rose and the U.S. dollar hit its highest in six months on Wednesday after stronger-than-expected U.S. services sector data suggested inflation pressures remain. Global assets http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar http://tmsnrt.rs/2egbfVh Emerging markets http://tmsnrt.rs/2ihRugV MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j (Reporting by Caroline Valetkevitch; additional reporting by Gertrude Chavez-Dreyfuss in New York and Nell Mackenzie in London and Kane Wu; Editing by Edmund Klamann, Sam Holmes, Will Dunham and Sharon Singleton) ((caroline.valetkevitch@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Weighing heavily on Wall Street stock indexes, shares of Apple AAPL.O fell 3.6% after the Wall Street Journal reported, citing people familiar with the matter, that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. By Caroline Valetkevitch NEW YORK, Sept 6 (Reuters) - World stock indexes fell while the benchmark U.S. Treasury yield rose and the U.S. dollar hit its highest in six months on Wednesday after stronger-than-expected U.S. services sector data suggested inflation pressures remain. The Nasdaq ended more than 1% lower, leading declines on Wall Street.
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13953.0
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2023-09-06 00:00:00 UTC
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US STOCKS-Wall St slides as economic data stokes inflation and interest rate worries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slides-as-economic-data-stokes-inflation-and-interest-rate-worries
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nan
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nan
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By Sinéad Carew and Shristi Achar A
Sept 6 (Reuters) - Wall Street's three major averages closed lower on Wednesday with the Nasdaq leading declines after stronger-than-expected services sector data fueled concerns that still sticky inflation would mean that interest rates stay higher for longer.
The Institute for Supply Management (ISM) said on Wednesday that its non-manufacturing Purchasing Managers' Index rose to 54.5 last month against expectations of 52.5, while a gauge of prices paid by service-sector businesses for inputs increased.
Traders were betting on a 91% change that the Federal Reserve would leave interest rates unchanged after its meeting on Sept. 20, while bets on another pause in November were around 55%, CME Group's FedWatch Tool showed.
"The stronger-than-expected ISM services data shows that investors are still not very skilled at reading the post-pandemic tea leaves," said Carol Schleif, chief investment officer at BMO's family office in Minneapolis.
While market participants have been hoping for interest rate cuts soon, Schleif said the data shows a strong economy and inflation that is not coming down "as fast as the Fed would need to start cutting rates any time in the foreseeable future."
Earlier in the day Boston Fed President Susan Collins stressed the need for the central bank to "proceed carefully" with its next monetary policy steps.
The prospect of higher rates put particular pressure on growth stocks with the S&P 500 growth index .IGXunderperforming the benchmark throughout the session. Equity investors were also reacting to rising yields in 10-year US10YT=RR and the two-year US2YT=RR U.S. Treasuries.
"Growth stocks have been pricing in the idea that inflation has been well anchored and that the Fed's going to cut. If that idea no longer holds they're going to be vulnerable," said Patrick Kaser, portfolio manager from Brandywine Global.
On top of rate concerns Apple Inc AAPL.O took added pressure from a report said China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work.
According to preliminary data, the S&P 500 .SPX lost 31.05 points, or 0.69%, to end at 4,465.78 points, while the Nasdaq Composite .IXIC lost 148.48 points, or 1.05%, to 13,873.99. The Dow Jones Industrial Average .DJI fell 201.61 points, or 0.58%, to 34,440.36.
Of the S&P 500's 11 major industry sectors, growth-heavy technology .SPLRCT was the biggest decliner while energy .SPNYwas supported by higher oil prices.
The S&P 500 showed little reaction to the Fed's "Beige Book" snapshot of the U.S. economy a week ahead of the keenly awaited August inflation data and the Fed's rate decision on Sept. 20.
The report showed "modest" U.S. economic growth in recent weeks while job growth was "subdued," and inflation slowed in most parts of the country.
Oil futures settled up on Wednesday adding to concerns that a recent uptick in the commodity price would add to inflationary pressure.
Lockheed MartinLMT.N shares fell sharply after the U.S. weapons maker trimmed the delivery outlook for its F-35 jets.
RokuROKU.O shares rose after the company said it would reduce its workforce by about 10% and limit new hiring.
(Reporting by Sinéad Carew in New York, Shristi Achar A and Amruta Khandekar in Bengaluru Editing by Vinay Dwivedi and Richard Chang)
((sinead.carew@thomsonreuters.com; +13322191897))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On top of rate concerns Apple Inc AAPL.O took added pressure from a report said China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. By Sinéad Carew and Shristi Achar A Sept 6 (Reuters) - Wall Street's three major averages closed lower on Wednesday with the Nasdaq leading declines after stronger-than-expected services sector data fueled concerns that still sticky inflation would mean that interest rates stay higher for longer. Earlier in the day Boston Fed President Susan Collins stressed the need for the central bank to "proceed carefully" with its next monetary policy steps.
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On top of rate concerns Apple Inc AAPL.O took added pressure from a report said China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. By Sinéad Carew and Shristi Achar A Sept 6 (Reuters) - Wall Street's three major averages closed lower on Wednesday with the Nasdaq leading declines after stronger-than-expected services sector data fueled concerns that still sticky inflation would mean that interest rates stay higher for longer. "The stronger-than-expected ISM services data shows that investors are still not very skilled at reading the post-pandemic tea leaves," said Carol Schleif, chief investment officer at BMO's family office in Minneapolis.
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On top of rate concerns Apple Inc AAPL.O took added pressure from a report said China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. By Sinéad Carew and Shristi Achar A Sept 6 (Reuters) - Wall Street's three major averages closed lower on Wednesday with the Nasdaq leading declines after stronger-than-expected services sector data fueled concerns that still sticky inflation would mean that interest rates stay higher for longer. While market participants have been hoping for interest rate cuts soon, Schleif said the data shows a strong economy and inflation that is not coming down "as fast as the Fed would need to start cutting rates any time in the foreseeable future."
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On top of rate concerns Apple Inc AAPL.O took added pressure from a report said China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. "Growth stocks have been pricing in the idea that inflation has been well anchored and that the Fed's going to cut. The Dow Jones Industrial Average .DJI fell 201.61 points, or 0.58%, to 34,440.36.
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13954.0
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2023-09-06 00:00:00 UTC
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Strength in U.S. Economic News Boosts Bond Yields and Weighs on Stocks
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AAPL
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https://www.nasdaq.com/articles/strength-in-u.s.-economic-news-boosts-bond-yields-and-weighs-on-stocks
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) today is down -0.83%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.52%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -1.03%.
Stock indexes this morning are moderately lower, with the S&P 500, Dow Jones Industrials, and Nasdaq 100 indexes falling to one-week lows. Stocks opened lower this morning on negative carryover from a fall in the Euro Stoxx 50 to a 1-1/2 week low on weaker-than-expected Eurozone economic news. Losses in stocks accelerated as bond yields jumped after today’s Aug ISM services report expanded more than expected, bolstering speculation the Fed will keep interest rates higher for longer.
The U.S. Aug ISM services index unexpectedly rose +1.8 to a 6-month high of 54.5, stronger than expectations of a decline to 52.5.
The U.S. Jul trade deficit widened to -$65.0 billion from -$63.7 billion in June, a smaller deficit than expectations of -$68.0 billion.
Boston Fed President Collins said it's "too early" to say if inflation is on a sustained path to 2%, and further tightening may be warranted depending on the data. She added that the Fed will "need to hold rates at restrictive levels for some time" as while demand is moderating, it continues to outpace supply, adding to price pressures.
The markets are discounting the odds at 8% for a +25 bp rate hike at the September 20 FOMC meeting and 54% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields are higher. The 10-year T-note yield rose to a 2-week high of 4.296% and is up +2.6 bp at 4.286%. The 10-year German bund yield rose to a 2-week high of 2.654% and is up +4.1 bp at 2.653%. The 10-year UK gilt yield rose to a 2-week high of 4.559% and is up +1.1 bp at 4.536%.
Overseas stock markets are mixed. The Euro Stoxx 50 is down -0.74%. China’s Shanghai Composite Index closed up +0.12%. Japan’s Nikkei Stock Index closed up +0.62%.
Today’s stock movers…
Nvidia (NVDA) is down more than -3% after Research Affiliates said the stock is “a textbook story of a Big Market Delusion,” and with shares trading around 110 times earnings, the stock is priced beyond perfection.
Apple (AAPL) is down more than -3%, leading losers in the Dow Jones Industrials as higher T-note yields weigh on tech stocks. Losses in Apple accelerated on technical selling after the stock fell below its 50-day moving average.
Warner Bros Discovery (WBD) is down more than -3% after it forecasted full-year Ebitda of $10.5 billion-$11.0 billion, down about $500 million from a previous estimate due to the impact of strikes from actors and writers.
Tesla (TSLA) is down more than -3% to lead losers in the Nasdaq 100 after Indonesian Coordinating Maritime Affairs and Investment Minister Panjaitan said CEO Musk is concerned about the state of the global economy and possible overcapacity in the EV market and shelved expansion plans in Indonesia.
Gilead Sciences (GILD) is down more than -2% after HSBC initiated coverage of the stock with a recommendation of reduce and a price target of $71.
Olin Corp (OLN) is down more than -2% after Goldman Sachs downgraded the stock to neutral from buy.
Southwest Airlines (LUV) is down more than -1% after Airlines it said that due to surging jet fuel costs, revenue for each seat flown mile would fall -5% to -7% from a year earlier compared with an earlier outlook for a drop of -3% to -7%.
Dexcom (DXCM) is up more than +5% to lead gainers in the S&P 500 and Nasdaq 100 after Jeffries said the use of obesity drugs appears to increase the use of type 2 diabetes continuous glucose monitors, which Dexcom manufactures.
Nasdaq Inc (NDAQ) is up more than +2% after reporting August equity options volume rose +8.8% y/y to 298 million contracts.
Salesforce (CRM) is up more than +1% to lead gainers in the Dow Jones Industrials after it said it added new artificial intelligence (AI) capabilities and automation improvements.
American Airlines Group (AAL) is up more than +2% after BNP Paribas Exane upgraded the stock to outperform from neutral with a price target of $20.
AeroVironment (AVAV) is up more than +27% after reporting Q1 revenue of $152.3 million, better than the consensus of $128.5 million, and raising its 2024 revenue forecast to $635 million-$675 million from a previous forecast of $630 million-$660 million, stronger than the consensus of $656 million.
NexGen Healthcare (NXGN) is up more than +14% after Thoma Bravo agreed to acquire the company for $23.95 a share.
Gitlab (GTLB) is up more than +4% after reporting Q2 revenue of $139.6 million, above the consensus of $129.9 million, and raising its 2024 revenue forecast to $555 million-$557 million from a previous forecast of $541 million-$543 million, better than the consensus of $542.9 million.
Trade Desk (TTD) is up more than +1% after William Blair initiated coverage on the stock with an outperform recommendation.
Across the markets…
December 10-year T-notes (ZNZ23) today are down -7 ticks, and the 10-year T-note yield is up +2.6 bp at 4.286%. Dec T-note prices today gave up an early advance and fell to a 1-1/2 week low, and the 10-year T-note yield rose to a 2-week high of 4.296% on stronger-than-expected U.S. economic news after the Aug ISM services index unexpectedly expanded by the most in 6 months. Also, comments today from Boston Fed President Collins weighed on T-note prices when she said it is "too early" to say if inflation is on a sustained path to 2% and further tightening may be warranted depending on the data.
The dollar index (DXY00) today is up +0.06% and posted a 5-1/2 month high. The dollar recovered from overnight losses and moved higher as T-note yields climbed on the stronger-than-expected Aug ISM services report. Also, hawkish comments from Boston Fed President Collins supported the dollar. In addition, Chinese economic concerns weighed on the yuan, which fell to a 10-month low against the dollar today.
EUR/USD (^EURUSD) is down by -0.06% and dropped to a 2-3/4 month low. The euro gave up overnight gains and turned lower after the dollar rebounded from early losses and moved higher. Also, weakness in Eurozone economic news weighed on the euro after Eurozone July retail sales fell for the first time in four months and after German Jul factory orders fell by the most in 3-1/4 years. EUR/USD today initially moved higher on hawkish ECB comments after ECB Governing Council member said the markets are underplaying the risks of an ECB rate hike next week, and Governing Council member Kazimir said a September rate hike is preferable to a later increase.
Eurozone July retail sales fell -0.2% m/m, right on expectations and the first decline in four months.
German July factory orders fell -11.7% m/m, weaker than expectations of -4.3% m/m and the biggest decline in 3-1/4 years.
ECB Governing Council member Kazimir said the ECB needs to raise interest rates one more time to make sure inflation returns to 2%, and a September rate hike is "preferable" to a later increase.
ECB Governing Council member Knot said investors betting against an ECB rate hike next week are "maybe" underestimating the likelihood of it happening.
USD/JPY (^USDJPY) is down -0.10%. The yen today recovered from a 10-month low against the dollar and is slightly higher. Comments from Japan’s top currency official, Masato Kanda, sparked short covering in the yen when he said he wouldn’t rule out any options if forex moves continue. The yen gave up some of its gains after T-note yields rose.
October gold (GCV3) today is down -8.8 (-0.45%), and Dec silver (SIZ23) is down -0.433 (-1.81%). Precious metals prices this morning are moderately lower, with gold dropping to a 1-week low and silver falling to a 2-week low. Today's rally in the dollar index to a 5-1/2 month high is bearish for metals. Also, rising global bond yields are negative for precious metals prices. In addition, hawkish central bank comments undercut precious metals when Boston Fed President Collins said it is "too early" to say if inflation is on a sustained path to 2% and further tightening may be warranted, and ECB Governing Council member Kazimir said the ECB needs to raise interest rates one more time to make sure inflation returns to 2%.
More Stock Market News from Barchart
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Ride to Multi-Month Highs With These Top Barchart Opinion Stocks!
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) is down more than -3%, leading losers in the Dow Jones Industrials as higher T-note yields weigh on tech stocks. Losses in stocks accelerated as bond yields jumped after today’s Aug ISM services report expanded more than expected, bolstering speculation the Fed will keep interest rates higher for longer. Warner Bros Discovery (WBD) is down more than -3% after it forecasted full-year Ebitda of $10.5 billion-$11.0 billion, down about $500 million from a previous estimate due to the impact of strikes from actors and writers.
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Apple (AAPL) is down more than -3%, leading losers in the Dow Jones Industrials as higher T-note yields weigh on tech stocks. Dec T-note prices today gave up an early advance and fell to a 1-1/2 week low, and the 10-year T-note yield rose to a 2-week high of 4.296% on stronger-than-expected U.S. economic news after the Aug ISM services index unexpectedly expanded by the most in 6 months. Also, weakness in Eurozone economic news weighed on the euro after Eurozone July retail sales fell for the first time in four months and after German Jul factory orders fell by the most in 3-1/4 years.
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Apple (AAPL) is down more than -3%, leading losers in the Dow Jones Industrials as higher T-note yields weigh on tech stocks. Today’s stock movers… Nvidia (NVDA) is down more than -3% after Research Affiliates said the stock is “a textbook story of a Big Market Delusion,” and with shares trading around 110 times earnings, the stock is priced beyond perfection. Dec T-note prices today gave up an early advance and fell to a 1-1/2 week low, and the 10-year T-note yield rose to a 2-week high of 4.296% on stronger-than-expected U.S. economic news after the Aug ISM services index unexpectedly expanded by the most in 6 months.
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Apple (AAPL) is down more than -3%, leading losers in the Dow Jones Industrials as higher T-note yields weigh on tech stocks. Dec T-note prices today gave up an early advance and fell to a 1-1/2 week low, and the 10-year T-note yield rose to a 2-week high of 4.296% on stronger-than-expected U.S. economic news after the Aug ISM services index unexpectedly expanded by the most in 6 months. The dollar index (DXY00) today is up +0.06% and posted a 5-1/2 month high.
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13955.0
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2023-09-06 00:00:00 UTC
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Big Tech Companies Brace for EU Antitrust Clampdown
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AAPL
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https://www.nasdaq.com/articles/big-tech-companies-brace-for-eu-antitrust-clampdown
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nan
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nan
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European Union (EU) antitrust regulators are preparing for a clampdown on anti-competitive practices in the digital economy and have put the world’s big tech firms on notice. The EU today listed 22 services that fall under its Digital Markets Act, and companies including Apple (AAPL), Amazon.com (AMZN), Meta Platforms (META), Microsoft (MSFT), and Bytedance Ltd’s TikTok will have six months to adjust to the new rules or challenge them in the EU court.
The Digital Markets Act (DMA), which takes effect in March of next year, will impose a rigid regime on companies whose practices have previously resulted in billions of euros in fines and tax orders from EU regulators. It will be illegal for certain platforms to favor their own services over those of rivals. Also, firms will be barred from combining personal data across their different services, prohibited from using data they collect from third-party sources, and will have to allow users to download apps from rival platforms.
The EU’s new regulations could result in Apple iPhone users being able to download apps from rival app stores. Also, Meta Platforms would be barred from combining user data between its Facebook and Instagram platforms without obtaining permission. In addition, Google would be prohibited from favoring its own search verticals, like Shopping, in its general search results. Google and Meta Platforms said they would review today’s decision, and Microsoft said it welcomes investigation into some of its services that it described as “challenges in the market.”
Some big tech companies are concerned about being able to comply with the new EU regulations. In a recent meeting between Apple and EU regulators, Apple warned of compliance challenges with the new rules and concerns over the scope of its services to be covered and how user experiences could be safeguarded. Also, Amazon.com said it expressed concern with “overlapping and conflicting regulation coming from national competition authorities.”
Following today’s announcement of the new rules from EU regulators, companies will have six months to re-engineer their services to align with the new rules or make legal challenges against the designation decisions. EU officials are expecting their decisions to be taken to court in cases that will likely be drawn out for years. While the big tech firms may want to test the rules in court, the Bruegel think tank believes they may not have much success, saying, “Where these platforms reach the necessary thresholds to come under the scope, we don’t think they’ll have a legitimate argument.”
More Stock Market News from Barchart
Strength in U.S. Economic News Boosts Bond Yields and Weighs on Stocks
Rent the Runway Alert: Options Traders Are Placing Big Bets on RENT Stock
Peloton Stock: Should You Buy the Dip or Dodge the Value Trap?
Markets Today: Stocks Slip as Weak Eurozone Economic News Fuels Growth Concerns
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The EU today listed 22 services that fall under its Digital Markets Act, and companies including Apple (AAPL), Amazon.com (AMZN), Meta Platforms (META), Microsoft (MSFT), and Bytedance Ltd’s TikTok will have six months to adjust to the new rules or challenge them in the EU court. The Digital Markets Act (DMA), which takes effect in March of next year, will impose a rigid regime on companies whose practices have previously resulted in billions of euros in fines and tax orders from EU regulators. Google and Meta Platforms said they would review today’s decision, and Microsoft said it welcomes investigation into some of its services that it described as “challenges in the market.” Some big tech companies are concerned about being able to comply with the new EU regulations.
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The EU today listed 22 services that fall under its Digital Markets Act, and companies including Apple (AAPL), Amazon.com (AMZN), Meta Platforms (META), Microsoft (MSFT), and Bytedance Ltd’s TikTok will have six months to adjust to the new rules or challenge them in the EU court. The EU’s new regulations could result in Apple iPhone users being able to download apps from rival app stores. Also, Meta Platforms would be barred from combining user data between its Facebook and Instagram platforms without obtaining permission.
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The EU today listed 22 services that fall under its Digital Markets Act, and companies including Apple (AAPL), Amazon.com (AMZN), Meta Platforms (META), Microsoft (MSFT), and Bytedance Ltd’s TikTok will have six months to adjust to the new rules or challenge them in the EU court. Also, Amazon.com said it expressed concern with “overlapping and conflicting regulation coming from national competition authorities.” Following today’s announcement of the new rules from EU regulators, companies will have six months to re-engineer their services to align with the new rules or make legal challenges against the designation decisions. While the big tech firms may want to test the rules in court, the Bruegel think tank believes they may not have much success, saying, “Where these platforms reach the necessary thresholds to come under the scope, we don’t think they’ll have a legitimate argument.” More Stock Market News from Barchart Strength in U.S. Economic News Boosts Bond Yields and Weighs on Stocks Rent the Runway Alert: Options Traders Are Placing Big Bets on RENT Stock Peloton Stock: Should You Buy the Dip or Dodge the Value Trap?
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The EU today listed 22 services that fall under its Digital Markets Act, and companies including Apple (AAPL), Amazon.com (AMZN), Meta Platforms (META), Microsoft (MSFT), and Bytedance Ltd’s TikTok will have six months to adjust to the new rules or challenge them in the EU court. Also, firms will be barred from combining personal data across their different services, prohibited from using data they collect from third-party sources, and will have to allow users to download apps from rival platforms. Google and Meta Platforms said they would review today’s decision, and Microsoft said it welcomes investigation into some of its services that it described as “challenges in the market.” Some big tech companies are concerned about being able to comply with the new EU regulations.
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13956.0
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2023-09-06 00:00:00 UTC
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Technology Sector Update for 09/06/2023: PLAB, AAPL, ROKU, MVLA
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-09-06-2023%3A-plab-aapl-roku-mvla
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nan
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nan
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Tech stocks were losing ground late Wednesday afternoon with the Technology Select Sector SPDR Fund (XLK) down 1.3% and the Philadelphia Semiconductor index shedding 0.9%.
In corporate news, Photronics (PLAB) shares fell 7.6% after the company's fiscal Q3 earnings and revenue trailed estimates by analysts.
China has ordered officials at central government agencies not to use Apple's (AAPL) iPhones and other foreign-branded devices for work or carry them into the workplace, The Wall Street Journal reported. The tech giant's shares were down 4.2%.
Roku (ROKU) shares were rising 1.2%. The company said it plans to cut 10% of its workforce to lower costs.
Movella (MVLA) said that it reduced its workforce by about 20% on Aug. 31 due to market conditions. Its shares were gaining 1.7%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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China has ordered officials at central government agencies not to use Apple's (AAPL) iPhones and other foreign-branded devices for work or carry them into the workplace, The Wall Street Journal reported. Tech stocks were losing ground late Wednesday afternoon with the Technology Select Sector SPDR Fund (XLK) down 1.3% and the Philadelphia Semiconductor index shedding 0.9%. In corporate news, Photronics (PLAB) shares fell 7.6% after the company's fiscal Q3 earnings and revenue trailed estimates by analysts.
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China has ordered officials at central government agencies not to use Apple's (AAPL) iPhones and other foreign-branded devices for work or carry them into the workplace, The Wall Street Journal reported. The tech giant's shares were down 4.2%. Roku (ROKU) shares were rising 1.2%.
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China has ordered officials at central government agencies not to use Apple's (AAPL) iPhones and other foreign-branded devices for work or carry them into the workplace, The Wall Street Journal reported. Tech stocks were losing ground late Wednesday afternoon with the Technology Select Sector SPDR Fund (XLK) down 1.3% and the Philadelphia Semiconductor index shedding 0.9%. In corporate news, Photronics (PLAB) shares fell 7.6% after the company's fiscal Q3 earnings and revenue trailed estimates by analysts.
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China has ordered officials at central government agencies not to use Apple's (AAPL) iPhones and other foreign-branded devices for work or carry them into the workplace, The Wall Street Journal reported. In corporate news, Photronics (PLAB) shares fell 7.6% after the company's fiscal Q3 earnings and revenue trailed estimates by analysts. The tech giant's shares were down 4.2%.
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13957.0
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2023-09-06 00:00:00 UTC
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How the Consumer Crunch Is Affecting Retailers
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AAPL
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https://www.nasdaq.com/articles/how-the-consumer-crunch-is-affecting-retailers
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In this podcast, Motley Fool analysts Jason Moser and Bill Mann and host Dylan Lewis discuss:
Troubling signs on consumer savings rates dropping and more people dipping into their 401(k) accounts.
How the consumer crunch is affecting retailers like Dollar General, Big Lots, Five Below, and Chewy.
Why Lululemon is bucking the trend, and Salesforce is cruising despite tighter budgets in enterprise software.
Two stocks worth watching: Take-Two Interactive and Samsara.
Motley Fool contributor Matt Frankel talks about how student loan borrowers can prepare for payments to begin again in October and the new programs in place to help them. You can find the Department of Education's website and resources here. And here's the White House's fact sheet on the SAVE plan.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on Sep. 01, 2023
Dylan Lewis: The consumer crunch is coming even for pet spend. We dig into all the retail results. Motley Fool Money starts now. It's the Motley Fool Money radio show. I'm Dylan Lewis. Joining me in studio, Motley Fool Senior Analysts Bill Mann and Jason Moser. Guys, great to have you both here.
Bill Mann: Thanks for having me back.
Dylan Lewis: We've got back-to-school lesson on student loans and stocks on our radar, but we're going to kick off today checking in on the health of the consumer. Jason, we have a report from LendingClub showing 61% of Americans are living paycheck to paycheck. This is something you've been tracking over time. Where are we on the alarm meter here?
Jason Moser: It's not getting better. You'd like to see this number a lot lower. Right now it is still precariously high. I think it's something to keep an eye on. I think it's something that really matters more for the lower income earners, and that's really where this breaks out, because why you see that 61% number, and you can see it ebb and flow between 58 and 63%, whatever, but if you look at this, and you're going to break it down by annual income, you've got 78% of consumers earning less than $50,000 a year, and 65% of those earning between $50,000 and $100,000 a year, they are living paycheck to paycheck, so considerably higher than that 61% number, whereas if you look at those earning $100,000 or more, only 44% of that demographic are actually reported living paycheck to paycheck.
That actually still seems pretty high as well, and we've seen over this last couple of years, those higher-income earners are making trade-offs and shopping at places where they might not normally shop. We saw Walmart with a lot of commentary over the last several quarters, bringing in some of those higher income earners. It's absolutely concerning, particularly, when you look at those lower income families, because that's not something that's poised to get much better anytime soon, particularly, as we know those student loan payments are getting ready to start backup.
Dylan Lewis: Bill, this to me seems like we're seeing the downstream data of a lot of the upstream macro factors we've been watching for a while, namely inflation as Jason was talking about.
Bill Mann: Definitely inflation, but one of the things that I think about and I track a lot is the personal savings rate. During 2020 I think that you can have a long conversation about whether the government made the right move. But I think that their heads were in the right place in terms of stopping student loan payments and things of that nature. The savings rate in 2020 went as high as 30%, and this last month, it was below 4%. In an inflationary environment, you have to wonder whether people writ large have been encouraged to spend money thinking that the status quo was going to remain in place, that we are lucky at this point that we still do have a relatively low unemployment rate. There are people who are living paycheck to paycheck, but at least most people have a paycheck. But I'm really starting to get concerned.
Dylan Lewis: We're seeing that savings rate dip, and we're also seeing increasingly more Americans dipping into their 401Ks. Reports from Vanguard, Bank of America, and Fidelity, all indicating hardship withdrawals on 401Ks, are increasing Bill, what do you make of the spike that we're seeing?
Bill Mann: Keep in mind when they say hardship withdrawals, there are standards that you have to meet to make a withdrawal from your 401K. You can't just show up and say, things aren't good. There are standards, so it's very concerning to me. We have seen a huge amount of people who make $50,000 and below, who are 50 and above, who have so little already set aside for retirement, and you're robbing your future at this point. It concerns me, particularly, as we're coming into a period of time in which people are going to have to start to pay off their student loans again, which is a trillion-dollar issue that so many Americans find themselves in such a level of distress that they have to borrow from their futures.
Dylan Lewis: Bill, that's a perfect tease for our C-segment interview later in the show. We're going to have Matt Frankel on talking about the resumption of student loan payments. I want to take what we just talked about here with consumer health and then look a little bit at some of the retailer earnings because I think we're seeing a lot of these trends materialized. Bill, you zoomed in on results from Dollar General. This is generally a provider out in the retail space that we think of as a very well-run business, and it seems like they too are getting bitten by a lot of what we're seeing here.
Bill Mann: Their earnings came out this week, and they missed on nearly every single measure. Their earnings per store were basically flat, and that is something that you haven't really seen. Here's a quiz actually. There are 13,500 McDonald's in the United States of America. How many Dollar General's are there?
Dylan Lewis: Because you asked the question, I feel like I have to say more, but my instinct would be less.
Bill Mann: More, 19,000 Dollar General stores.
Dylan Lewis: I like that we hedged that. I went low because one of us was going to be right, Jason.
Jason Moser: It's in honor of the late Bob Barker.
Dylan Lewis: Yes. Exactly.
Bill Mann: But you know the move, If I ask you a question, the answer is absurd. [laughs]
Dylan Lewis: You're bringing this up, Bill, because this is a massive retailer.
Bill Mann: It's a massive retailer, and I don't think people realize the reach and the breadth of Dollar General. Their earnings, I think, had some really interesting things to them, and so the stock at this point is as down from its peak as it has ever been, nearly 50%. It's been cut in half. They said that their gross profit had declined primarily due to inventory mark ups and increased shrink, which is theft.
Dylan Lewis: We did see that pop up a lot this retail earnings seasons.
Bill Mann: People are going into the stores and not paying for the stuff. I'm always reminded, something that I learned from Django Unchained, which is the second thing they mentioned is the most important one, which is that a greater proportion of their sales are coming from the consumables category. If you think about Dollar General, what they have done is they've gone and bought closeouts stuff, so you never really know the next time you go in what's going to be there.
Dylan Lewis: I think one of the things that's interesting with Dollar General they noted in the call was, in addition to a lot of the other macro factors we talked about there swirling, they said food stamp recipients are going to be receiving about $100 less in benefits per month on average starting in the spring of 2024, that's as we see some of the pandemic relief programs phase out. That is one of those things we need to keep an eye on, but it's in a little bit in the distant future.
Bill Mann: All of these things are related. Now Dollar General is very much part of the trade down that Jason suggested, why you're seeing great results from Walmart because people who didn't shop at Walmart now are feeling enough of a pinch. Dollar General is definitely one click down from that, and I think that's why the consumables issue is so interesting. They are trying to make themselves a much more predictable shopping experience when that's not what they've been in the past. I think that's going to be a really hard lift at a period of time in which people are becoming more desperate with their financial situations.
Dylan Lewis: We also, sticking with the retail theme, got an update from Big Lots this week. Jason, it seems like a lot of the forces we were just talking about Dollar General are very much in play with the Big Lots story.
Jason Moser: No question about it. The consumer focus much more on the necessities, not the discretionary. A lot of the language in this call was really concerning. The numbers were concerning. It really made that initial reaction to the stock was confounding, [laughs] up 30% and shares are down 55% year-to-date. You take that wondering what [inaudible]
Bill Mann: There's nothing as powerful as low expectations. [laughs]
Jason Moser: They were not good results. You're talking about comp sales down 14.6%, earnings loss of $3.24, and that was attributed all to this challenging environment. They're talking about the core lower-income consumer remaining under significant pressure has limited capacity for higher ticket discretionary purchases, and that just plays right out of Big Lots wheelhouse. They're just not going to be able to really succeed in this type of environment. They noted in the call too this is really concerning. For the past one-and-a-half years, they said, "We've been playing defense as the consumer environment quickly and sharply deteriorated." I think it's fair to assume that things are going to get worse before they get better, which means these companies, Dollar General, Big Lots, they're in a real predicament.
Dylan Lewis: Bill, anything on the Big Lots earnings?
Bill Mann: Can I mentioned some good news here?
Dylan Lewis: We need some hits.
Jason Moser: Were so down.
Dylan Lewis: [inaudible] we're allowed to talk about happy things.
Bill Mann: I don't know what happened to us. We were giggling before the show, and all of a suddenly, we started, like, it's terrible. Keep in mind that these companies are basically at the tail end of the inventory chain. One thing that we know from 2021 and 2022 is that inventories at stores across the board has been a mess. Supply chains have been a mess. I suspect that they are going to start to see some good pricing available to them for things that they've traditionally been able to sell at a tremendous margin. I suspect that the front-end of the business is going to be better, but it doesn't really help on the consumer side, but there is good news there.
Jason Moser: Bill, I'm going to take your cue here and wrap us up with discount retailers that have some good news. Five Below also reported this week, and they maintained their full-year outlook in this dour economic picture. What's going on with the earning story there?
Bill Mann: You know when you've got $1 store versus $5 store, that's a pretty big difference. You're at a different set of the market. Yeah, it was it was good news from them, and I think a lot of it has to do in the fact that, just as I was saying with Dollar General, how they're trying to get more into consumables. Five Below has remained a treasure hunt-type store, like, you have no expectation the next time you go in that the thing you see is going to be there the next time. They haven't really moved away from that. I also thought it was interesting that they're rolling out a, perhaps, a 10 Below, which is the next, I guess.
Jason Moser: That's 10 times more expensive than Dollar.
Bill Mann: Exactly. [laughs]
Dylan Lewis: They're finding upside. Is that what you're saying though?
Bill Mann: They are finding upside by sticking to their knitting. It's a much smaller store with a much smaller footprint than Dollar General. I don't know that Five Below feels the same level of, I don't know if you'd call it, social obligation, but the places where you tend to find Dollar Generals are very small towns where it is the store of choice, and that's not where Five Below is, and for better or for worse, right now, it's benefiting them.
Dylan Lewis: Coming up after the break, we've got updates on three heavily followed Fool stocks, including Jason's radar stock from last week. Stay right here. You're listening to Motley Fool Money.
Welcome back to Motley Fool Money. I'm Dylan Lewis, joined in studio by Bill Mann and Jason Moser. We're going to continue the retail theme, gentlemen. Jason, last week you gave us a woof woof and said you were watching Chewy earnings. Shares fell 10% after the pet supply company reported. What did you see in the results?
Jason Moser: I saw some good news, and I saw some bad news. Let's start with the good news. Why not? You look at the results, net sales up 14.3% to almost $2.8 billion. Clearly the growth is there. You look at the metrics that matter with a business like this, and I think, most of that, you look at things like autoship and the net sales per active customer. Those metrics are really strong. Autoship continues to make up an overwhelming majority of the sales, 76% of total sales for the quarter. That was up from 73% a year ago. Net sales per active customer, up to $535 from 462 a year ago. We're seeing the thesis play out here. There is a resilience in pet spending. Now the flip side of that is, and management noted this in the call, that pet household formation remains relatively muted. I think that's what the market really ultimately focused in on here. That's why the stock took a little bit of a hit because they said in light of recent trends, we're now expecting a wider range of outcomes. That's code for uncertainty. [laughs] We all know how the market loves uncertainty.
Dylan Lewis: Jason, can you help me unpack pet household formation?
Bill Mann: I had the same question.
Jason Moser: [inaudible] I think that speaks to all of the growth that we saw on that formation over the last three years. When we were all stuck at home, and we didn't have anything to do, people were adopting pets left and right. We pulled a lot of that growth forward, and now what we're seeing is this additional bringing of more pets in, that's just slowed down. We've seen unfortunately some folks giving those pets back away, which we hate to see that kind of stuff, but ultimately, that growth we saw on that formation over the last three years really has slowed down considerably, understandably so.
Bill Mann: I want to ask you about the average spend per customer because $535. You have dogs, and I have I have a dog, that seems like a lot, and it seems like a place where I'm not sure that they can really expect that to continue. They have to, as you said, depend more on additional customers coming in the front [inaudible] .
Jason Moser: I think that's the key. My pet spending, for example, we got three dogs and a cat. It's going to be relatively predictable because I'm not adding another animal, I don't think. At some point or another, yeah, if you want to really juice that, you got to keep on growing your users. You got to grow your customer base in somewhere around 20 million or so. Now they've done a great job again. They benefited from these last several years of bringing a lot of new customers in. They're doing a great job of retaining them. Clearly as these autosales and the revenue growth shows, but you can only expect that net sales per active customer to go so far.
Dylan Lewis: One place we are not seeing the spending cutback hit, Lululemon. The athletic apparel company raised full-year guidance on the top and bottom line after reporting an 18% increase this quarter. Bill, what is Lulu doing right?
Bill Mann: Big Yoga is killing it.
Dylan Lewis: [LAUGHTER] Absolutely. We just had such a dour session. This is what we should have led with.
Bill Mann: You know how everyone else in the world is talking about the slowdown in China, the economic issues in China. You know who's not talking about that at all?
Dylan Lewis: Lululemon.
Bill Mann: Lululemon had a 61% revenue spike in China, which is bonkers because, Lululemon, we think of it here as being a luxury company. It's truly luxury in China, and the luxury companies in China have, across the board, seen absolutely horrible results. Lululemon comes along, and Big Yoga is just doing great. I don't really know what it is. They don't have a different product mix in China. It's just something that continues to capture the minds of their target market.
Dylan Lewis: Jason, we were talking a little bit about some of the trends we're seeing in different portions of the consumer market. Is this just audience for Lululemon and core customer being different than some of the other retailers we talked about before?
Jason Moser: I think so. Just to piggyback on Bill's Big Yoga because, number one, I love that Big Yoga, but one of the reasons why the Lululemon continues to succeed is their ability to have expanded so far beyond just yoga. We're talking like golf, tennis, dance. They are really growing their offerings and building out more things for more customers. That was the big question mark with this company for so long is, like, how big is that audience? Is it just really a niche play? Now what we're seeing is they're becoming more things to more people, which is what we want to see. Into your point there on the spending and the consumer, it is a higher price point. We know they're not going to conceal a lot on pricing. When we go back to those living on paycheck to paycheck, and we refer to that number of those earning $100,000 or more, only 44% are reported living paycheck to paycheck. That absolutely plays into Lululemon's favor, even when times are a little bit harder.
Dylan Lewis: If you're tired of the retail beat, don't worry. [laughs] We're going to wrap up our earnings conversation with a tech company. Jason, we saw earnings from Salesforce this week, and generally, we've been seeing a similar narrative with enterprise spend that we've been seeing with consumer spend, a little bit tighter. People may be not as willing to spend on new projects or new software systems, it doesn't seem to be biting Salesforce too much.
Jason Moser: It's not. I will say they did note in the call, as we've seen with a lot of these enterprise software companies, they are still seeing elongated sales cycles as well, but I think that Salesforce's market-leading position really allows them to play a little bit more offense as opposed to the defensive posture we see from a lot of their smaller competitors. They built such a strong portfolio of offerings that cover the CRM spectrum, customer relationship management. You got DataCloud, Tableau, Slack, MuleSoft, and all of these businesses really feed off of one another and add to the Salesforce story. They continue to loft up these good growth numbers, and revenue was up 11% for the quarter. They are really executing on the share buyback program, which is historically something they had never done before, so I think that's adding a little optimism as well. They bought that $8 billion worth of stock over the last 12 months, which is actually bringing the share count down. Go figure. With tech companies, [laughs] that's not supposed to happen.
Dylan Lewis: Not always the story.
Bill Mann: Stop the presses. [laughs]
Dylan Lewis: Bill, you dug into the results a little bit. What did you say?
Bill Mann: I think one of the more interesting things about Salesforce is the big joke about Salesforce because nobody really knows what they do because they do everything. [laughs] But Salesforce has had an opportunity, and what they have done in the past is that they've bought a huge amount of companies. They have grown very quickly, as Jason said, through acquisition of other companies. It's really interesting to me, as depressed as the pricing has become for a lot of these smaller tech companies that we haven't seen more activity out of Salesforce.
Dylan Lewis: One data point with Salesforce, and I'll let you go. In the last five years, the number of $10 million plus customers has tripled, so they are doing something right.
Bill Mann: Same with Lululemon.
Dylan Lewis: Bill Mann, Jason Moser, we're going to see you guys a little bit later in the show. Up next we've got an update on the student loan payment story. Stay tuned and listen to Motley Fool Money. Welcome back to Motley Fool Money. I'm Dylan Lewis. In March of 2020, the government paused student loan payments and interest accumulation, providing pandemic relief for more than 40 million borrowers. That pause is ending this fall, and while borrowers won't need to start making payments until the beginning of October, if you have student loans, now is a good time to check in and prepare for the payments to resume. Certified financial planner and Fool contributor Matt Frankel join me to talk through how to get up to speed on your loan and the new programs in place to help out borrowers. This September is back to school and back to student loan interests. Motley Fool contributor and CFP Matt Frankel joins me to talk through the x's and o's of student loan repayments. Matt, thanks for being on.
Matt Frankel: Hey, Dylan. Student loans were a complicated topic before all the recent news, and others have a whole lot more to unpack. I'm glad to be here.
Dylan Lewis: I think it's one of those things that people have said, you know what, I'm just going to put this one on the back burner for a little while and wait for things to get figured out. We are coming up on the date where student loan interest resumes on 9/1, payments resume on 10/1, but I think this is probably something that needs to come back to the forefront of people's minds.
Matt Frankel: A lot of people haven't thought of student loans in the past three-and-a-half years. Not only have they not made any payments, they haven't logged onto their servicer, they haven't researched the latest repayment plans and kept up with Public Service Loan Forgiveness and things like that. It is something people need to keep in mind, but it doesn't need to be the panic scramble-to-fit student loans in your budget that you might think.
Dylan Lewis: If you're someone who has student loans and has not been paying attention as we've been in that student loan payment pause, what would you advise the first couple of steps for getting started getting reacquainted with what you have in your loans?
Matt Frankel: One, figure out who your loan servicer is so you can log on. A lot of people don't realize this. The three biggest student loan servicers all exited the business during the payment pause. There's a very high chance that your student loan servicer is not who it was last time you made a student loan payment. That's number one. You could do that on the Department of Education's website. That's the first step to being able to log in to see what you owe, to see what repayment plan you're enrolled in. We'll talk about the new repayment plan, I'm sure, in a little bit, but that's the big Number 1 step that will alleviate a lot of people's uncertainty about what's going on with student loans.
Dylan Lewis: You get back into the system, you know who your provider is, and you're logged in. Matt, what about when people are seeing the sticker shock of, OK, this is what my monthly payment is. This isn't what I've got in my current monthly budget. How do I try to square these numbers up?
Matt Frankel: Two things. One, there is what the Biden administration is calling the repayment on-ramp. It's essentially a twelve-month forbearance period that anyone can take advantage of, if they want to. It'll last through the end of September 2024. Any missed payments within that first 12 month period, they won't be reported to credit bureaus. They won't be sent to Collections. Your loans won't be put into default. You'll still be accumulating interest, but if you need that extra time, it's there, which is Number 1. Number 2, the SAVE plan. The new repayment plan is designed to replace the most popular existing income-driven repayment plan. It reduces required payments for borrowers significantly across the board, and it does it in two big ways. It reduces the amount of discretionary income you're required to pay on undergraduate loans from 10% to 5%, so it cuts it in half, and it decreases what is considered discretionary income in the first place. It raises the threshold to anything above 150% of the poverty line, all the way up to 225% of the federal poverty line, so there's a smaller portion of income that the government is going to be looking at, and the percentage of that that you're going to be required to pay is a lot less. The SAVE plan is they're enrolling it if you are not automatically enrolled already because of your current plan, so don't panic. There are some ways to potentially help fit that payment into your budget and help the timetable work a little better for you.
Dylan Lewis: If folks are interested in the SAVE plan, where should they go for more information on that, Matt?
Matt Frankel: At FedLoan, the student loan webpage. It's run by the Department of Education. The White House has actually put out some great fact sheets that are like a page [inaudible] long that cover really the broad strokes of it. But check out the Department of Education's website. The SAVE plan, every federal student loan borrower could benefit from it.
Dylan Lewis: In better news, for some student loan borrowers, just under a million borrowers, will have their debt discharged this month. Matt, what are the details on that?
Matt Frankel: First of all, if you were among that 800,000 people or or thereabouts, you probably would have already heard. What's happening, this is has to do with loan forgiveness programs, specifically, the ones related to income-driven repayment plans, like the SAVE plan. Basically, income-driven repayment plans are setup to forgive any remaining balance after either 20 or 25 years in repayment, depending on whether the borrower has undergraduate or graduate school loans. The problem was, in the past, not all the payments that were supposed to count toward that 20-year, 25-year were counted. For example, if you consolidated your loans like I did, because when i graduated college, I had 12 separate student loans. Each semester is a different one. Sometimes you are subsidized and are unsubsidized. If you consolidate it, under the previous rules, that reset the clock, so they're going back and making this onetime adjustment. Unless you've got your student loans more than 20 years ago, you are probably not one of the initial 800,000 people, but they're making this one-time adjustment to everyone's account. It's estimated that most borrowers are going to get at least three years closer to student loan forgiveness than they were before. It adds up to a lot. Thirty-nine billion dollars of debt is immediately going to be discharged. Some people are even going to get a refund, if it turns out that they were paying for longer than they were supposed to. If they were paying for 22 years while they were supposed to be paying for 20, anything they paid in that last few years, they can get a refund for, but it it will move a lot of borrowers. I'm not at that 20 year point yet. I'm not quite there. I'm a little closer than I'd like to admit, but it's going to move me a few years closer to forgiveness than I otherwise would have been. Over the next several months, they're doing this in stages based on how long you've had your student loans for. Everyone should see a little bit more payment credit added to their student loans. By the way, this COVID repayment pause counts. That's three-and-a-half years you weren't making payments that counts toward your forgiveness timetable.
Dylan Lewis: Matt, I wouldn't think of it as aging. I would just think of it as being closer to forgiveness date. It's a nicer, easier way to think about it.
Matt Frankel: It will be a nice 45th or so birthday present to be eventually when my loans do get forgiven.
Dylan Lewis: There you go. There's the sunny side of it. We've been taking primarily the borrower angle in this discussion, but there's a pretty big macro story with this, and it's one we've been following for a little while. The idea that the resumption of student loan payments means that there are going to be less consumer dollars out there. Budgets might be a little bit tighter. What are you watching and paying attention to to get a sense of the health of the consumer with this?
Matt Frankel: You're absolutely correct. This is going to be a pretty big hit to the consumer. The average student loan payment is a little under $400 per month for federal student loan borrowers, and that's a payment that most people have not put in their budget. If you're curious about it, 98% of people have not been making student loan payments during the pause, even though they can chip away at their balance interest-free, if they wanted to, so it is going to be a financial shock for a lot of people to fit this into their budget. I get it mentioned that on-ramp is there to help, but this is something that could have big economic consequences because that $400 a month is not going to come out of somebody's housing budget or somebody's car payment budget. That's going to come from discretionary income. That's going to come out of money that they would take to the store and spend and stimulate the economy, so although, in the scheme of things, a relatively small sum of money we're talking about, compared to total gross domestic product, things like that, it is going to be a big factor because it's that part of the spending that is really discretionary, and retailers that sell discretionary things could definitely feel sting. We could see an uptick in other loan defaults people have trouble making your other loan payments, but for the most part, it's a discretionary part of the budget that people just aren't used to paying, so that's going to have to come from somewhere.
Dylan Lewis: I know one of the other factors that's swirling with this story, Matt, is, we've seen credit card balances rising a little bit as well, and so some of that discretionary or even just [inaudible] have to spend it but don't necessarily have the cash, has already been put on credit cards. It seems like we're looking at a very tight picture of the consumer, in general.
Matt Frankel: Take advantage of that on-ramp, in the meantime, if you need to. If you can make your student loan payment, by all means, do it. But when you think about it this way, you mentioned the high credit card debt recently surpassed the trillion dollars, for the first time. The average credit card interest rate has gone up to 24 percent. If you have credit card debt, and you're trying to figure out what to do with paying your student loans while you're still paying credit cards, that could be a situation where that payment on-ramp could make sense. Yes, interest is building on your student loans. But it would be better to knock out debt that is sitting there at 24% interest or whatever, in the meantime, and give yourself a few months. While meanwhile, your student loans are only accumulating at 5% or 6% or something like that. The math works out in situations like that with the on-ramp. If you can take that, put all your efforts to getting rid of your credit card debt. It can make fitting your student loan payment in your budget a lot easier a few months down the road.
Dylan Lewis: It's hard to beat a guaranteed rate of return of 24%, Matt.
Matt Frankel: Right. [Laughs] You can argue that's the best investment you can make. I don't know about you. I'm not a good enough Investor where I can consistently make 24% returns. Maybe you are, and you'll be retiring in five-years if you could do that.
Dylan Lewis: No, I can't claim anything close to that, Matt.
Matt Frankel: I've had one or two years like.
Dylan Lewis: Matt, as we wrap, anything else people need to keep in mind as they're paying attention to the student loan story, either as a borrower or as an investor?
Matt Frankel: Take advantage of the flexibility of student loan debt. It's literally the most flexible type of consumer debt there is in terms of being able to lower your payments, pause your payments. It's really easy to get a student loan forbearance or a deferral in most cases. If you need one, it's there. The on-ramp is there. The SAVE plan is there. There's a lot of flexibility there. Get in touch with your servicer. If you're worried about it, and find out your options.
Dylan Lewis: You can catch this week's radio show in our podcast feed. We've got links to the resources Matt referenced in the episode description. If you're catching us on the radio, you can find Motley Fool Money daily on Apple, Spotify, and wherever you listen to podcasts. Coming up after the break, Bill Mann and Jason Moser return with a couple of stocks on their radar. Stay right here. You're listening to Motley Fool Money. As always, people on the program may have interest in the stocks they talk about, and the Motley Fool may have formal recommendations for or against, so don't buy or sell anything based solely on what you hear. I'm Dylan Lewis, joined again by Bill Mann and Jason Moser. Burger King is feeling the heat this week. A judge ruled the company can face a class action lawsuit after customers have alleged the chain made Whoppers appear twice as large as they actually are in advertisements, while the actual burgers served to customers are 35% smaller than those marketed. Bill, in prepping the show, you said that you had some flame-broiled fire-hot takes on this one, and I cannot wait to hear.
Bill Mann: I love me a frivolous lawsuit. [laughs] We are the dumbest country. The American eater is undefeated.
Dylan Lewis: Absolutely.
Bill Mann: The people who have put forth the suit, and I do actually agree that this is a reasonable class action suit because false advertising is, in fact, a form of fraud. But it's the dumbest form of fraud. Here's what I think Burger King should do, say, "You know what, not only did we get that wrong, but I think that you should taste one of the burgers that we use for the marketing shoots because it's got glycerin on it, and the mayonnaise is actually Elmer's glue, and so it doesn't taste the same either. Is that OK for you?"
Dylan Lewis: For those reasons, Bill, I take the other side of this one, and I should note here, McDonald's and Wendy's faced similar lawsuits last year. I think that the crux of this issue is what we see in the ads is not edible.
Bill Mann: I think that they should be thanked for making these things smaller.
Dylan Lewis: There may be a point there. I get your point there.
Bill Mann: It is a public service.
Jason Moser: Taco Bell is facing the same thing here now, so this is not some one-off. Clearly, there is something here, but we've been knowing about this since we were kids. This is nothing new. Clearly, the lawsuit, this is just somebody trying to make a point. This isn't something that just happened. I have been dealing with this all my life, Dylan.
Dylan Lewis: Is this status quo worth defending though, Jason and Bill? I feel like this is something where, like, I don't know that we need to plant our flag on false advertising.
Jason Moser: Listen, I give Burger King and McDonald's and Taco Bell all the room in the world to keep advertising and do whatever you can to bring it into traffic in the door. Because if you think about the millions and millions of customers they serve every year, this is a drop in the bucket, somebody looking for some easy money, I think, but what do I know?
Bill Mann: Sure. I think what may be coming next would be, for example, it's going to be a class action on Tinder profiles because those are 20 years old, and that's false advertising at this point. In some ways, I think it's an abuse of the court system. There's really nothing to be gained from this.
Jason Moser: It reminds me of the Netflix special. It was that documentary on the Pepsi [inaudible] .
Dylan Lewis: Pepsi challenge.
Jason Moser: Dude, Where's My Jet, where you collect enough points and then you could win this jet. Now clearly the jet was never something that was going to be offered. But you could even see the timeline of how Pepsi's marketing went through this. They're, like, maybe we got to adjust this commercial a little bit, add a statement down at the bottom just to say jet is not real or this offer is not real. Now the guy that took that to court ultimately ended up losing, and he didn't get his jet. But you can see how this stuff plays out. You have to be very thoughtful when it comes to these marketing campaigns.
Dylan Lewis: For what it's worth, if I am working as an advertiser, either in-house or consulting for a fast food business, I'm looking at this and saying, " [inaudible] opportunity for a commercial campaign where we show the food as it actually is and make it as appetizing as possible."
Bill Mann: Do you remember the Domino's campaign probably 10 years ago where they came out, and they actually said, yes, our pizza is bad?
Jason Moser: Then look at the stock from there.
Bill Mann: It was incredible.
Jason Moser: Because you know why? They said, hey, we have the self-awareness. Our pizza sucks. You know what, we're going to make it better. They did, and look what happened.
Dylan Lewis: I'm just saying, if there's anyone who works in the fast food industry that's listening to the show, free marketing idea right there for you. Let's get over to stocks on our radar. Our man behind the glass, Rick, is going to hit you with a question. Bill, you're up first. What are you looking at this week?
Bill Mann: I am super interested in Take-Two Interactive, and Take-Two Interactive video game company, they've got all sorts of titles. They've got NBA. They've got WWE. They have a new game coming out. It's one of the Dana White titles. He owns Slap Fight, and so they have a video game coming out called Power Slap.
Dylan Lewis: Is Slap Fight just for the listeners out there? Is this exactly what it sounds like though?
Bill Mann: These are not confusing words. These are not code for something else. It's literally, I slap you, you slap me, and we go until someone doesn't want to be slapped anymore.
Dylan Lewis: In a video game?
Bill Mann: Yes, but that's live. It is such a low-input idea and concept. I cannot wait to see what this video game looks like.
Dylan Lewis: Rick, with that compelling pitch, a question about Take-Two Interactive.
Rick Engdahl: Yeah, I actually own Take-Two. I became very interested right around December of 2020. Let me tell you the view from the peak of that stock chart is glorious.
Bill Mann: Yes.
Rick Engdahl: How much longer till I get that view again?
Bill Mann: It's funny because video game companies like Take-Two Interactive, their budget for each video game is manifold higher than the development of a Hollywood blockbuster movie. They're called the AAA rated games. I look at a company like Take-Two Interactive in full disclosure, I am a shareholder as well, and I think very highly of this company. Obviously during 2020, everyone thought that their kids were going to be playing NBA 2K forever, and that wasn't the case. They eventually got to go back outside. But these are companies with such powerful titles, such powerful franchises that I expect that you will be very happy with your holding of Take-Two Interactive over the longer term. But since you did ask me a number, I'm going to just say seven.
Dylan Lewis: There we go, seven. I'm going to hold you to that. Jason, what is on your radar this week?
Jason Moser: Just keeping an eye on the company that I've ever recommended called Samsara, not a very familiar name I think for most. Ticker is IOT. As you may guess, this is a company capitalizing on the Internet of things that we've heard so much about over the last several years. Earnings, as I said, came out Thursday after the market closed, and clearly the markets seem to be very happy with the results. As a reminder, they help enterprise customers connect their buildings, equipment, cars, other facilities, and ultimately helps them work better, work more together, ensure more safety, save money, be more efficient, all of that great stuff. But for the quarter revenue of $219.3 million, it was up 43% from a year ago, annualized recurring revenue $930 million, now up 40% from a year ago, and now 1,515 customers with annual recurring revenue of over $100,000, that's up 53% from a year ago, so a company with an extremely rule breaker-ish valuation, but they do seem to be breaking a lot of rules and winning a lot along the way.
Dylan Lewis: Rick, a question about Samsara.
Rick Engdahl: Based on my extensive research, I find that Samsara is really good at a thing called Telematics.
Jason Moser: Yes.
Rick Engdahl: I had to look that up. Apparently, telematics is a portmanteau of telecom and informatics. Sorry, I'm stuck here. What the heck is telematics?
Jason Moser: Telematics is just exactly what it is.
Bill Mann: What the heck is a portmanteau?
Jason Moser: Telephone, information, matics, it's all together. It's just fancy stuff.
Dylan Lewis: My high school French is paying off, portmanteau, you never thought, but there it is. Rick, thank you for your question. Which one's on your watch list this week?
Rick Engdahl: I love me a good portmanteau, so I'm going to go with telematics.
Dylan Lewis: That's awesome. Jason Moser, Bill Mann, thanks for being here. Rick, thanks for weighing in on our radar stocks. That's going to do it for this week's Motley Fool Money radio show. The show is mixed by Rick Engdahl. I'm Dylan Lewis. Thanks for listening. Catch you next time.
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Bill Mann has positions in Domino's Pizza and Take-Two Interactive Software. Dylan Lewis has positions in Salesforce and Spotify Technology. Jason Moser has positions in Apple and Chewy. Matthew Frankel, CFP® has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Chewy, Domino's Pizza, Lululemon Athletica, Netflix, Salesforce, Spotify Technology, Take-Two Interactive Software, and Walmart. The Motley Fool recommends Big Lots, Five Below, Samsara, and World Wrestling Entertainment. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In this podcast, Motley Fool analysts Jason Moser and Bill Mann and host Dylan Lewis discuss: Troubling signs on consumer savings rates dropping and more people dipping into their 401(k) accounts. In an inflationary environment, you have to wonder whether people writ large have been encouraged to spend money thinking that the status quo was going to remain in place, that we are lucky at this point that we still do have a relatively low unemployment rate. Dylan Lewis: I think one of the things that's interesting with Dollar General they noted in the call was, in addition to a lot of the other macro factors we talked about there swirling, they said food stamp recipients are going to be receiving about $100 less in benefits per month on average starting in the spring of 2024, that's as we see some of the pandemic relief programs phase out.
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In this podcast, Motley Fool analysts Jason Moser and Bill Mann and host Dylan Lewis discuss: Troubling signs on consumer savings rates dropping and more people dipping into their 401(k) accounts. In March of 2020, the government paused student loan payments and interest accumulation, providing pandemic relief for more than 40 million borrowers. The Motley Fool has positions in and recommends Apple, Bank of America, Chewy, Domino's Pizza, Lululemon Athletica, Netflix, Salesforce, Spotify Technology, Take-Two Interactive Software, and Walmart.
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In this podcast, Motley Fool analysts Jason Moser and Bill Mann and host Dylan Lewis discuss: Troubling signs on consumer savings rates dropping and more people dipping into their 401(k) accounts. Dylan Lewis: Bill Mann, Jason Moser, we're going to see you guys a little bit later in the show. Dylan Lewis: If you're someone who has student loans and has not been paying attention as we've been in that student loan payment pause, what would you advise the first couple of steps for getting started getting reacquainted with what you have in your loans?
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Dylan Lewis: Bill, anything on the Big Lots earnings? Dylan Lewis: Bill Mann, Jason Moser, we're going to see you guys a little bit later in the show. I'm Dylan Lewis, joined again by Bill Mann and Jason Moser.
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13958.0
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2023-09-06 00:00:00 UTC
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Technology Sector Update for 09/06/2023: AAPL, ROKU, MVLA
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-09-06-2023%3A-aapl-roku-mvla
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nan
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nan
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Tech stocks were lower Wednesday afternoon, with both the Technology Select Sector SPDR Fund (XLK) and the Philadelphia Semiconductor index falling around 1.4%.
In company news, China has ordered officials at central government agencies not to use Apple's (AAPL) iPhones and other foreign-branded devices for work or carry them into the workplace, The Wall Street Journal reported. The shares were down 3.6%.
Roku (ROKU) shares were rising past 3%. The company said it plans to cut 10% of its workforce to lower costs.
Movella (MVLA) said that it reduced its workforce by about 20% on Aug. 31 due to market conditions. Its shares were down 1.2%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In company news, China has ordered officials at central government agencies not to use Apple's (AAPL) iPhones and other foreign-branded devices for work or carry them into the workplace, The Wall Street Journal reported. Tech stocks were lower Wednesday afternoon, with both the Technology Select Sector SPDR Fund (XLK) and the Philadelphia Semiconductor index falling around 1.4%. Movella (MVLA) said that it reduced its workforce by about 20% on Aug. 31 due to market conditions.
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In company news, China has ordered officials at central government agencies not to use Apple's (AAPL) iPhones and other foreign-branded devices for work or carry them into the workplace, The Wall Street Journal reported. Roku (ROKU) shares were rising past 3%. The company said it plans to cut 10% of its workforce to lower costs.
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In company news, China has ordered officials at central government agencies not to use Apple's (AAPL) iPhones and other foreign-branded devices for work or carry them into the workplace, The Wall Street Journal reported. Tech stocks were lower Wednesday afternoon, with both the Technology Select Sector SPDR Fund (XLK) and the Philadelphia Semiconductor index falling around 1.4%. Roku (ROKU) shares were rising past 3%.
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In company news, China has ordered officials at central government agencies not to use Apple's (AAPL) iPhones and other foreign-branded devices for work or carry them into the workplace, The Wall Street Journal reported. Tech stocks were lower Wednesday afternoon, with both the Technology Select Sector SPDR Fund (XLK) and the Philadelphia Semiconductor index falling around 1.4%. The shares were down 3.6%.
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13959.0
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2023-09-06 00:00:00 UTC
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Warren Buffett Quotes Under the Microscope
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-quotes-under-the-microscope
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nan
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nan
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In this podcast, Motley Fool analyst Bill Mann and host Dylan Lewis discuss:
Grayscale Bitcoin Trust's path to a Bitcoin ETF and what it means for crypto adoption.
The largest automaker that you've never heard of -- VinFast -- and why investors should stay away from its stock.
3M's $6 billion settlement, and how investors should be thinking about the legal issues plaguing the company.
Motley Fool host Ricky Mulvey and Anand Chokkavelu, director of Motley Fool Live programming, celebrate Warren Buffett's birthday with a look at some of his most popular and misunderstood quotes.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Grayscale Bitcoin Trust (btc)
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This video was recorded on Aug. 30, 2023
Dylan Lewis: ETFs and PFAS, we've got acronym alphabet soup. Motley Fool Money starts now. I'm Dylan Lewis, and I'm joined in the studio by Motley Fool Senior Analyst Bill Mann. Bill, thanks for joining me.
Bill Mann: Been a little while.
Dylan Lewis: It's been a little while. It's nice to be back in the groove of things. We're going to be taking a break from the earnings beat with today's show. I think, when I teed up the topics for today's show, is that, Bill, we have three funky stories to talk about. I think there's a lot of interesting stuff going on here. We have a multi-billion dollar settlement for 3M, an upstart, that is suddenly one of most valuable automakers in the world. But we're going to start with news of crypto and ETFs. Grayscale Bitcoin Trust has been trying to convert it's fund to an ETF. The SEC has protested, despite approving Bitcoin ETFs for ProShares and some other ones. It seems like we're actually going to see a path forward for the Grayscale, Bill.
Bill Mann: The SEC has blocked Grayscale from turning from an options and a futures-driven closed-end fund into an ETF. Whether you like crypto or not, and I will put my cards on the table, I do not. But whether you do or not, the case itself isn't about any evaluation of crypto itself. It's a trading vehicle. To me, the SEC's position has always been somewhat bizarre because, what they've been trying to do is, they've got crypto and Bitcoin basically in this gray zone as to whether it's a commodity, as to whether it is a security. It seems to me that Gary Gensler and the SEC just simply don't like crypto, and so I think that that has driven their set of decisions, and Grayscale is the first of them, but it's not the last of them. BlackRock has attempted to stand up a Bitcoin ETF. It's not done yet. There are paths that they could come back, and attempt to have the case reheard. They can appeal. They can change what it is that their objections are to a Bitcoin ETF, but it seems that there is a path forward for this trading sardine to have a trading sardine on a major exchange. For the Bitcoin people out there, it adds a little bit of liquidity, but I think that's about it.
Dylan Lewis: I was going to ask you. We saw major currencies like Bitcoin, Ether, and we also saw Coinbase stock up on the news. Is this something that actually helps crypto adoption? Why is there an interest in making this an ETF versus the fund that it has been?
Bill Mann: I don't think it hurts crypto adoption. I don't see how this is a negative for them. It's a reasonable thing to assume. I don't really see how it does help, except for the fact that it gives an avenue to more liquidity for people who do not want to or are worried about storing their own Bitcoins. This is the thing. ETF is a much better vehicle than a closed-end fund with futures, with the exception of the fact that the people who run the ETF have to be really sure about their storage and their assay of the Bitcoin's themselves. As we've seen over the last couple of years, people have come up with remarkable ways of losing their crypto. It is on Grayscale to protect the actual instruments and themselves as opposed to futures. But for an institutional group like that, I don't know that's that big of a deal.
Dylan Lewis: For the longest time, this Grayscale Bitcoin Trust was the easy way into crypto for people that didn't want to necessarily. But it came with a cost. For a very long time, when we saw a surge in crypto interest, we saw that this fund was trading at a massive premium to the underlying assets. Now it's flipped because I think we've seen the market switch a little bit. It's now at 30% discount. Do you expect an ETF would trade a little bit more closely to the asset value that the fund holds?
Bill Mann: It should. When you think about what an ETF is, an ETF actually gives you the right to go in, and for the exchange of money, they will give you what's called a creation unit in return. You can actually go to ETFs and get them to give you the underlying asset. If there is a huge gap between the Grayscale ETF and the actual price of the underlying Bitcoin, people will come in and arbitrage that. You can't really do that with a closed-end fund, which is why you see those huge differences in the premiums and the discounts to net asset value. There should be some more efficiency. This, again, speaks to why, although I don't really see that this gets more people interested in Bitcoin. It does add an argument to the liquidity side of things that it does make it easier for people to do so
Dylan Lewis: Over to interesting story Number 2 for the day, Bill. There's a new automaker in town or at least on the market. Earlier in August, shares of Vietnamese automaker VinFast hit the market by way of SPAC. Bill, the company currently sports a market cap of over $100 billion. It did less than a billion dollars in sales in 2022. Bill, what do you make of this?
Bill Mann: I got to buy. No, I love stories like this. I think the stock is certainly being manipulated by somebody. The primary owner is a guy named Pham Nhat Vuong, who owns somewhere in the range of 99% of the company. There are very few shares that have made it onto the open market, so it's a perfect situation where you could see a stock being easily manipulated when there are so few shares in the free float. It had a great IPO. This happened actually last year as well. A company from Hong Kong called AMTD, which people in Hong Kong will tell you they've still never heard of, went up to be about a $280 billion company. VinFast at least is a real company with real products. They sold 26,000 cars last year, which I submit is not many. [laughs]
Dylan Lewis: It doesn't justify a $100 billion valuation. I'll say that much.
Bill Mann: Listen. What we always say about the market, as investors, is the market is efficient, but it is not fully efficient. Situations like this just really show how the market does leave opportunities for people. This company, it's not shortable right now. At which point in time it does become a shortable, I think you will see people piling in to get under that side. The cost to do so is extreme. But this is an obviously overvalued company, and one where I would say that people stay very far away. I would even say that on the short side, even when you see a situation like this, it's just something that's fun to watch. Look, I have no comments about the company itself. It is a small start-up that came public through a SPAC. I think, once again, the SEC really needs to take a close look in the mirror at how they have allowed so many SPACs to come public, and for something like this to happen, this is a market structure problem, and it was preventable. We've seen it in the past.
Dylan Lewis: I was going to say I love the story, the business itself aside, because it's a market mechanics story. It is a low float business. I think Baron said there were 16 or 17 million shares available for trading in the grand scheme of things.
Bill Mann: Which is nothing. [laughs]
Dylan Lewis: But this is where we see this wild activity and this wild behavior. If you're looking for positives here, Bill, I'd say, it's partially because we're seeing enthusiasm for EVs. This is a place where this company operates.
Bill Mann: It ticks all the boxes. There's the electric vehicle angle, and it is one of the few if not the only publicly traded in the US-Vietnamese company. Vietnam is a country that I think that investors should be interested in. It's one of the logical places where manufacturing that has been in China will move to. I think that that is an inexorable trend over the next decade. There's a lot of reasons why you would be interested in VinFast, but I would say give it a little while and let things settle because this company might be worth a lot, but it's definitely not worth more than every automotive company, except for Tesla and Toyota.
Dylan Lewis: From an upstart manufacturer to one that I think is a pretty much a household name at this point, 3M shares up 6% this week. After reports, it will be reaching a $6 billion settlement related to earplugs provided to the military. Bill, this is the largest mass tort litigation in US history affecting 250,000 plaintiffs. The stock is up on the news. Can you walk me through this one?
Bill Mann: It just shows that the market hates uncertainty. Whenever you get news and whenever you get bounds put around something, even if the news is bad, that becomes a known as opposed to something that you guess at. It's such an interesting case to me because these earplugs were manufactured from 2003 until the mid-2015, I believe, and 3M bought the company that made them in 2007. It wasn't even 3M producing a product. It was 3M buying a product. This settlement, it's not a ruling, it's a settlement, comes with, you're not going to believe this, Dylan, no admission of liability.
Dylan Lewis: I think I've heard that story before.
Bill Mann: Six billion dollars in claims to the plaintiffs, and it is five billion in cash and one billion in 3M stock.
Dylan Lewis: Which is interesting.
Bill Mann: I don't know that I've ever seen it done like that before.
Dylan Lewis: I definitely did a double-take when I was looking at the press release.
Bill Mann: I don't know that I've ever seen that before. It's wild that the stock is up, but this has been an overhang over 3M for a really long time, and now they have boundaries around it, and they know what the case is going to be. By the way, they also aren't just coughing up five billion dollars immediately. It is over the next five years.
Dylan Lewis: This is not the only thing that is overhanging 3M stock, and it's not the only major settlement for this company. I've generally thought of them as one of the blue-bloods of American manufacturing.
Bill Mann: They are.
Dylan Lewis: One of the haunted names, but this has been a rough year for them. They also are waiting on final settlement for $10 billion agreement with US towns and cities over the company's use of PFAS, which is short for per- and polyfluoroalkyl substances. [laughs] These are better known as forever chemicals, Bill, and this has been something that people have been wondering about as well. Do you feel like, with these two stories combined, there are starting to be some cracks in the armor for this business?
Bill Mann: That could be. Again I come back to 3M produces thousands of products. We have seen overtime, and you don't even have to be a cynic to have seen companies who have put forth profitability over public safety in some form or fashion. I do not even want to start naming companies, we'll get sued, but there are a legion of them. It is definitely possible that 3M has cut some corners. I think it's really important with the hearing protection lawsuit to note that this was a product that they bought. This might go down on the list as one of the worst purchases in history for any company. I guess there are some companies that accidentally bought asbestos liabilities in the past. But 3M does have plenty of capability to handle that. I would be mindful of the next shoe to drop with 3M to see if there are additional actual product liability issues for them to deal with. In this country, as we know, we like suing people an awful lot. I don't necessarily put product liability issues as being automatically the fault of the producer of the product.
Dylan Lewis: Over to something a little bit lighter as we wrap things up, Bill.
Bill Mann: Thank you, gosh.
Dylan Lewis: Today a special shout-out to our good friend, Warren Buffett. The Oracle turns 93 today. Bill, any well wishes or favorite quotes from Uncle Warren?
Bill Mann: It's interesting to say for someone who's worth, I think, $70 billion, but I think that Warren Buffett has given more than he's gotten in terms of knowledge, in terms of building businesses, in terms of just returns on capital and how the businesses that Berkshire Hathaway owns have, for example, transformed the city of Omaha. It is meaningful. One of the most important people to have lived in the last century, and he has now lived for most of the last century, I think that the most important and maybe most misunderstood Warren Buffett quote is one where he said, "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes." He was one of the first. He studied under Benjamin Graham at Columbia University in business school. They were among the first people to really treat stocks as parts of businesses. We hear this now, and it seems to be bleedingly obvious. But for most of the period of time in which the US stock market has existed, it was something that was so highly speculative because the movement of the stocks and the underlying businesses almost had nothing to do with each other. It's overstating it to thank Warren Buffett for this, but he definitely played a part in that change in philosophy.
Dylan Lewis: I think we spend so much time in that philosophy, thinking of it as the Foolish philosophy, and really the foundation of that lives with Graham and with Buffett.
Bill Mann: Absolutely. It is very easy for investors to wrap themselves with the blanket of Warren Buffett. But that is something that is at the core of what we do, and it is why the Motley Fool exists is to get people to think about stocks as being pieces of businesses and not numbers that go up and down on a spreadsheet or on the Internet.
Dylan Lewis: Bill, like Warren, I think you give more than you get. I appreciate you coming on today's show and giving some insights.
Bill Mann: Thanks, Dylan.
Dylan Lewis: Coming up, the Buffett celebration continues. We've got a more in-depth look at some of Buffett's best-known quotes. Ricky Mulvey and Anand Chokkavelu take a look at some Buffetisms that are often misunderstood.
Ricky Mulvey: Anand, since the year 2000, Warren Buffett has pointed to age being a potential risk to Berkshire Hathaway in his annual shareholder letter. We're a few years since then, and Warren Buffett is turning 93 today. Let us just first say happy birthday, Warren Buffett.
Anand Chokkavelu: Happy birthday, Warren.
Ricky Mulvey: I have no gifts for him. We have nothing we can offer, but maybe what we can try to do is take a look at some of the more misunderstood Warren Buffett financial wisdom that is often seen in clickbait articles and, perhaps, on Twitter.
Anand Chokkavelu: Our gift to you is more understanding.
Ricky Mulvey: What do you buy for a billionaire on his 93rd birthday? If you have a private jet, it's pretty hard to figure out gifts, I think.
Anand Chokkavelu: Yes.
Ricky Mulvey: With that, we know Warren Buffett likes to read. We've read a few of the shareholder letters. I think you've read a little bit more than me, so I'm going to lean on you for this. But what is the first Warren Buffett rule that is often misunderstood by investors?
Anand Chokkavelu: We'll start with a rule Number 1, never lose money. Rule Number 2 is never forget rule Number 1. That's the lesson. But here's the lesson that many people hear. Honestly, it's pretty correct. But they fail to go to the next step into what it means. They're just like, "Yeah, don't buy stocks that go down."
Ricky Mulvey: Yes, that's bad. What I would also say to that is I took a look at when he said it. I think it was originally in the mid '80s of where there's the first record. I thought there was a chance that in the late '90s, Warren Buffett watched Fight Club, where the first rule is that you don't talk about Fight Club, and the second rule is that you don't talk about Fight Club, and then he applied this to his letters. But he in fact was first to this, but Buffett has also said "We will occasionally make an unconventional move when we believe the odds favor it. Try to think kindly of us when we blow one." There are times that he gets outside of his own framework, and we were talking about this before the recording. You can often take whatever you want from Buffett to determine your own investing wisdom and preferences.
Anand Chokkavelu: Yeah. He's a very smart person. You can't just button it down and perfectly do it. But the real lesson he was going for here is, for his style of investing, the floor matters more than the feeling. You have to be very disciplined for this. Here are some examples. The guy who doesn't buy tech stocks. There's an exception. Apple is almost half of his portfolio at the point that we're talking right now, and that's partly because the price of appreciation. But he was comfortable making a big bet on Apple even though it's "tech." You know why? Because it's basically a consumer brand, and it was similar enough to Coca-Cola, one of his other huge bets in the past, versus a normal tech company that's going to get disrupted every few years, so one that is actually consistent. People also forget that, this quote of never losing money, they also criticized the huge amount of cash that Berkshire Hathaway holds for a long period of time, just waiting and waiting for a great deal to come along, and that's part of the never losing money. He gets hammered in bubble times for not doing more.
Ricky Mulvey: If you remember a few years ago, there was a group of folks that Buffett just doesn't understand cryptocurrency, and maybe the true sign of a bubble is when people are on LinkedIn explaining why Buffett is an idiot about investing.
Anand Chokkavelu: That's fantastic. A little bit linked in, because you got to be just good enough for your business associates to think, "Yeah, that makes sense."
Ricky Mulvey: Yeah. Todd Combs did an interview. We did at Motley Fool Money episode about this in February. But basically, there's three rules that Berkshire looks for when they filter stocks. One is a next 12 month price-to-earnings ratio of 15 or less, a 90% confidence that the company will generate higher growth five years from now, and then they're looking for about a 7% compound annual growth revenue until then. It's one of those things where the rule is very simple. It is much harder to do that because it is quite tough to think about what will happen five years from now and if you're 90% confident about it. Let's move to the next lesson, or the quote, which is, when Warren Buffett is most often asked about the key to success, he often says, focus.
Anand Chokkavelu: Yeah, and people here, he focuses. But again, the magnitude of focus is misunderstood. At parties, I remember in one of his biographies, at social gatherings at his own house, at parties, he would just go off and start reading shareholder letters, just like he does all the time. He started at around age 11, I think that's when he bought his first stock. Today he is 93.
Ricky Mulvey: 82 years.
Anand Chokkavelu: People also talk about putting in 10,000 hours. By my calculations, Buffett has put in well north of 100,000 hours. The focus he has on a daily basis, and as consistently and early as he started doing it, is profound.
Ricky Mulvey: I'd also add to that, the letters he's reading often, they're for businesses that aren't exciting all. It is going into the weeds about insulation, a lot of it about insurance, in some cases, these very boring companies with reliable returns that other people don't want to spend the time understanding. I'm offering that advice on and is someone who should probably take it as well. Everybody else should do this thing.
Anand Chokkavelu: There's that quote he has of, like, how would you start? You'd say, back when there wasn't an Internet, and it was like a Moody's guides, he said, "I would start with the A's," like an encyclopedia-type of thing. People think, he's not really joking. He's reading all these shareholder letters. You probably would start with the A's.
Ricky Mulvey: But as we move to the third lesson on, and I think this one might be the most misunderstood. It is, "Be greedy when others are fearful and fearful when others are greedy." Sounds pretty simple, and for a while I was, like, yeah, makes sense to me, but why is this often misunderstood by investors?
Anand Chokkavelu: We love it. It might be his most famous quote. There's so many good ones. But it makes us all say, hey, the rest of the market doesn't see what I see and is unnecessarily scared. It's time to go all in. They're scared. I'm being greedy. But the actual lesson he was trying to embark is pretty much the opposite. It's don't try to time the market by jumping in and out. By the way, it's darn hard to beat a boring old index fund. Here's the whole quote from his 2004 shareholder letter. It's a little long, but it's his birthday, so we're going to give them some time here. This was the 2004 shareholder letter. "Over the 35 years, American businesses delivered terrific results. It should therefore have been easy for investors to earn juicy returns. All they had to do was piggyback corporate American and diversified low-expense way, an index fund that they never touched would have done the job. Instead many investors have had experiences ranging from mediocre to disastrous. There have been three primary causes. First, high cost, usually because investors traded excessively or spent far too much on investment management. Second, portfolio decisions based on tips and fads rather than on thoughtful quantified evaluation of businesses. Third, a start-and-stop approach to the market marked by untimely entries after an advance has been long underway and exits after periods of stagnation or decline. Investors should remember that excitement and expenses are their enemies. If they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful.
Ricky Mulvey: There's a lot of preamble to it that is often left out. It's interesting because, in some ways, the rules of that have very much changed. Right now, expenses and costs are significantly lower than when he wrote this letter in 2004, but human nature has a more difficult time changing in 19 years. I'll take his quick sidetrack. That does remind me of the Peter Lynch, misquote I would say, about, "don't cut your flowers and water your weeds". When it's, like, "don't sell your winners and just add to your losers" where the actual quote is much longer and more thoughtful. "Some people automatically sell the winners, stocks that go up, and hold onto their losers, stocks that go down, which is about as sensible as pulling out there flowers and watering the weeds. Others automatically sell their losers and hold onto their winners, which doesn't work out much better. Both strategies failed because they're tied to the current movement of the stock price as an indicator of the company's fundamental value." If you get anything from this segment, please read the full paragraphs. But, Anand, if you had to distill down Buffett's advice for his birthday, the gift you're offering to him and Munger and investors, how would you distill Buffett's investing advice?
Anand Chokkavelu: I'd put it into two buckets. One is for people who enjoy buying individual stocks and all the work that goes along with it. It's patiently bought quality companies when they become available at fair prices, then you hold them. That's what he does. Then for people who don't enjoy buying individual stocks, buy broad market tracking index funds. Hold them. That's what he does for his wife [inaudible] . His words on one of his writings is, my advice to the trustee could not be more simple, put 10% of the cash in short-term government pods and 90% in a very low-cost S&P 500 index fund. I suggest Vanguards. I believe the trust long-term results from this policy will be superior to those attained by most investors, whether pension funds, institutions or individuals who employ high-fee managers.
Ricky Mulvey: As we wrap up, I think Buffett's wisdom is often found in paragraphs, and as we talked about the 1989 shareholder letter, I think one of the more underrated sections in there was about high-growth rates and what investors can expect. It goes, "We face some other obstacle. In a finite world, high-growth rates must self-destruct. If the base from which the growth is taking place is tiny, this law might not operate for a time, but when the base balloons, the party ends. A high-growth rate eventually forges its own anchor." Carl Sagan has entertainingly described this phenomenon using about the destiny of bacteria that reproduce by dividing into two every 15 minutes. Says Sagan, "That means four doublings an hour, 96 doublings a day. Although a bacterium weighs only a trillion of a gram, its descendants, after a day of wild asexual abandon, will collectively weigh as much as a mountain, in two days, more than the sun, and before long, everything in the universe will be made of bacteria. Not to worry," says Sagan, "some obstacle always impedes this exponential growth. The bugs run out of food, or they poison each other, or they are shy about reproducing in public. Even on bad days, Charlie Munger and I do not think of Berkshire as a bacterium nor to our unending sorrow have we found a way to double its net worth every 15 minutes? Furthermore, we're not the least bit shy about reproducing financially in public. Nevertheless, seconds observations apply."
Anand Chokkavelu: What a fantastic quote.
Ricky Mulvey: That was from '89, but I think it's still applies today. I know you have some final thoughts of your own about Buffett's wisdom as we wrap up.
Anand Chokkavelu: Yeah. Maybe it's talking about a criticism. It's, why does Buffett say the same quotes over and over and over again? But the reason is, there are many ways to beat the market, but finding you're winning system early and sticking to it is key. Remember he was an age 11, you will start, and then he pretty much formulated as plan pretty much since then, and he's stuck to those principles for the most part. If you've got your plan, and so say someone asked you for 50 straight years, what 2 plus 2 equals, will your answer always be four.
Ricky Mulvey: If you got discipline, and you've got a system that sometimes you might say the same things. Anand, I always enjoy are different and varied conversations. Appreciate your time and [inaudible].
Anand Chokkavelu: Ricky.
Dylan Lewis: As always, people on the program may own stocks mentioned, and the Motley Fool may have formal recommendations for or against, so don't buy or sell anything based solely on what hear. I'm Dylan Lewis. Thanks for listening. We'll be back tomorrow.
Anand Chokkavelu, CFA has positions in Berkshire Hathaway. Bill Mann has positions in Berkshire Hathaway. Dylan Lewis has no position in any of the stocks mentioned. Ricky Mulvey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Bitcoin, Moody's, Oracle, and Tesla. The Motley Fool recommends 3M and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It does add an argument to the liquidity side of things that it does make it easier for people to do so Dylan Lewis: Over to interesting story Number 2 for the day, Bill. Because it's basically a consumer brand, and it was similar enough to Coca-Cola, one of his other huge bets in the past, versus a normal tech company that's going to get disrupted every few years, so one that is actually consistent. Dylan Lewis: As always, people on the program may own stocks mentioned, and the Motley Fool may have formal recommendations for or against, so don't buy or sell anything based solely on what hear.
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In this podcast, Motley Fool analyst Bill Mann and host Dylan Lewis discuss: Grayscale Bitcoin Trust's path to a Bitcoin ETF and what it means for crypto adoption. Motley Fool host Ricky Mulvey and Anand Chokkavelu, director of Motley Fool Live programming, celebrate Warren Buffett's birthday with a look at some of his most popular and misunderstood quotes. People also forget that, this quote of never losing money, they also criticized the huge amount of cash that Berkshire Hathaway holds for a long period of time, just waiting and waiting for a great deal to come along, and that's part of the never losing money.
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In this podcast, Motley Fool analyst Bill Mann and host Dylan Lewis discuss: Grayscale Bitcoin Trust's path to a Bitcoin ETF and what it means for crypto adoption. One of the most important people to have lived in the last century, and he has now lived for most of the last century, I think that the most important and maybe most misunderstood Warren Buffett quote is one where he said, "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes." Dylan Lewis: As always, people on the program may own stocks mentioned, and the Motley Fool may have formal recommendations for or against, so don't buy or sell anything based solely on what hear.
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Bill Mann: I don't know that I've ever seen it done like that before. Bill Mann: I don't know that I've ever seen that before. But what is the first Warren Buffett rule that is often misunderstood by investors?
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13960.0
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2023-09-06 00:00:00 UTC
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US STOCKS-Wall St slides as services data stokes inflation worries, Apple drags
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slides-as-services-data-stokes-inflation-worries-apple-drags
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Apple slips on report China bans iPhone use for govt officials
Lockheed Martin slips on F-35 jet delivery outlook cut
Roku jumps on plan to cut workforce
Fed's Beige Book due 2:00 pm ET
Indexes down: Dow 0.56%, S&P 0.79%, Nasdaq 1.06%
Updated at 11:47 a.m. ET/ 1547 GMT
By Shristi Achar A and Amruta Khandekar
Sept 6 (Reuters) - Wall Street fell on Wednesday after stronger-than-expected services sector data fueled concerns of sticky inflation and interest rates staying higher for longer, while a drop in shares of Apple further weighed down the indexes.
The Institute for Supply Management (ISM) said on Wednesday its non-manufacturing PMI rose to 54.5 last month against expectations of 52.5, while a gauge of prices paid by service-sector businesses for inputs increased.
Traders' bets for a pause in interest rate hikes in the central bank's September meeting stood at 91%, with bets on a pause in November slipping to 46.8% from nearly 57% before the data, according to the CME FedWatch Tool.
"Everybody has been kind of getting in the camp that we're done with rate hikes but when you see something like that (stronger-than-expected economic data), they do get a little nervous," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.
"Every Fed governor comes out and says they look for the data and that data point today is definitely something that's a little bit more inflationary."
Boston Fed President Susan Collins stressed on the need for the central bank to "proceed carefully" as it takes its next monetary policy steps.
AppleAAPL.O was the biggest drag across the three major indexes, down 3.0% after a report said China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work.
Other megacaps also declined, with Tesla TSLA.O, Amazon.com AMZN.O and Nvidia NVDA.O down between 1.0% and 3.2% as yield on the 10-year US10YT=RR and the two-year US2YT=RR Treasury notes moved higher after the economic data.
Healthcare stocks .SPXHC fell 0.7%, dragged by a 1.3% drop in Johnson & Johnson JNJ.N. HSBC initiated coverage on the healthcare conglomerate with a "hold" rating, according to a report from thefly.com.
Investors were also waiting for the Fed's "Beige Book", due at 2:00 p.m. ET, for a snapshot of the U.S. economy, ahead of the keenly awaited inflation data scheduled for next week and the Fed's policy decision on Sept. 20. '
A recent uptick in oil prices has also stoked fears of persistent inflationary pressures that could compel the Federal Reserve to maintain its hawkish stance on interest rates.
At 11:47 a.m. ET, the Dow Jones Industrial Average .DJI was down 194.34 points, or 0.56%, at 34,447.63, the S&P 500 .SPX was down 35.48 points, or 0.79%, at 4,461.35, and the Nasdaq Composite .IXIC was down 147.96 points, or 1.06%, at 13,872.99.
Lockheed MartinLMT.N dropped 4.0% after the U.S. weapons maker trimmed the delivery outlook for its F-35 jets.
RokuROKU.O climbed 6.1% after the video-streaming company said on Wednesday it would reduce its workforce by about 10% and limit new hiring.
Declining issues outnumbered advancers by a 2.14-to-1 ratio on the NYSE and by a 2.06-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and 24 new lows, while the Nasdaq recorded 32 new highs and 119 new lows.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru Editing by Vinay Dwivedi)
((Shristi.AcharA@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AppleAAPL.O was the biggest drag across the three major indexes, down 3.0% after a report said China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. Apple slips on report China bans iPhone use for govt officials Lockheed Martin slips on F-35 jet delivery outlook cut Roku jumps on plan to cut workforce Fed's Beige Book due 2:00 pm ET Indexes down: Dow 0.56%, S&P 0.79%, Nasdaq 1.06% Updated at 11:47 a.m. ET/ 1547 GMT By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street fell on Wednesday after stronger-than-expected services sector data fueled concerns of sticky inflation and interest rates staying higher for longer, while a drop in shares of Apple further weighed down the indexes. The Institute for Supply Management (ISM) said on Wednesday its non-manufacturing PMI rose to 54.5 last month against expectations of 52.5, while a gauge of prices paid by service-sector businesses for inputs increased.
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AppleAAPL.O was the biggest drag across the three major indexes, down 3.0% after a report said China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. Apple slips on report China bans iPhone use for govt officials Lockheed Martin slips on F-35 jet delivery outlook cut Roku jumps on plan to cut workforce Fed's Beige Book due 2:00 pm ET Indexes down: Dow 0.56%, S&P 0.79%, Nasdaq 1.06% Updated at 11:47 a.m. ET/ 1547 GMT By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street fell on Wednesday after stronger-than-expected services sector data fueled concerns of sticky inflation and interest rates staying higher for longer, while a drop in shares of Apple further weighed down the indexes. Traders' bets for a pause in interest rate hikes in the central bank's September meeting stood at 91%, with bets on a pause in November slipping to 46.8% from nearly 57% before the data, according to the CME FedWatch Tool.
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AppleAAPL.O was the biggest drag across the three major indexes, down 3.0% after a report said China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. Apple slips on report China bans iPhone use for govt officials Lockheed Martin slips on F-35 jet delivery outlook cut Roku jumps on plan to cut workforce Fed's Beige Book due 2:00 pm ET Indexes down: Dow 0.56%, S&P 0.79%, Nasdaq 1.06% Updated at 11:47 a.m. ET/ 1547 GMT By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street fell on Wednesday after stronger-than-expected services sector data fueled concerns of sticky inflation and interest rates staying higher for longer, while a drop in shares of Apple further weighed down the indexes. Traders' bets for a pause in interest rate hikes in the central bank's September meeting stood at 91%, with bets on a pause in November slipping to 46.8% from nearly 57% before the data, according to the CME FedWatch Tool.
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AppleAAPL.O was the biggest drag across the three major indexes, down 3.0% after a report said China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Apple slips on report China bans iPhone use for govt officials Lockheed Martin slips on F-35 jet delivery outlook cut Roku jumps on plan to cut workforce Fed's Beige Book due 2:00 pm ET Indexes down: Dow 0.56%, S&P 0.79%, Nasdaq 1.06% Updated at 11:47 a.m. ET/ 1547 GMT By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street fell on Wednesday after stronger-than-expected services sector data fueled concerns of sticky inflation and interest rates staying higher for longer, while a drop in shares of Apple further weighed down the indexes.
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13961.0
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2023-09-06 00:00:00 UTC
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GLOBAL MARKETS-Stocks fall, dollar and yields rise after US services data
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AAPL
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https://www.nasdaq.com/articles/global-markets-stocks-fall-dollar-and-yields-rise-after-us-services-data
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nan
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By Caroline Valetkevitch
NEW YORK, Sept 6 (Reuters) - World stock indexes were lower while U.S. Treasury yields rose and the U.S. dollar hit its highest in six months on Wednesday after stronger-than-expected U.S. services sector data suggested inflation pressures remain.
The Institute for Supply Management's (ISM) data showed the non-manufacturing PMI picked up in August, with new orders firming and businesses paying higher prices for inputs.
Some investors said the data may add to signs that interest rates could remain elevated for longer. The U.S. Federal Reserve is still expected to pause in its rate hikes when it meets later this month.
The Nasdaq led declines on Wall Street and technology .SPLRCT was down the most of S&P 500 sectors.
Shares of Apple AAPL.O fell 3.2% after the Wall Street Journal reported, citing people familiar with the matter, that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work.
The Dow Jones Industrial Average .DJI fell 212.46 points, or 0.61%, to 34,429.51, the S&P 500 .SPX lost 37 points, or 0.82%, to 4,459.83 and the Nasdaq Composite .IXIC dropped 153.74 points, or 1.1%, to 13,867.21.
The pan-European STOXX 600 index .STOXX lost 0.59% and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.64%.
In other data, manufacturing activity in Germany, Britain and the euro zone declined, while their service sectors fell into contraction territory.
Investors also await the Fed's "Beige Book" report, due later on Wednesday, for a snapshot of the U.S. economy.
"The two big challenges facing the Fed right now are the risks that inflation could become entrenched and the risks that the consumer could falter when excess savings dry up," Jeffrey Roach, chief economist at LPL Financial, wrote in a note after the data.
The dollar index rose to a fresh six-month high of 105.03 =USD, and was last at 104.95, up 0.2%, with the euro EUR= down 0.08% to $1.0711.
In the Treasury market, benchmark 10-year notes US10YT=RR were up 3.3 basis points at 4.302%, from 4.268% late on Tuesday.
Oil prices eased. U.S. crude CLc1 recently fell 0.33% to $86.40 per barrel and Brent LCOc1 was at $89.60, down 0.49% on the day.
Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
(Additional reporting by Gertrude Chavez-Dreyfuss in New York and Nell Mackenzie in London and Kane Wu; Editing by Edmund Klamann, Sam Holmes, Will Dunham and Sharon Singleton)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple AAPL.O fell 3.2% after the Wall Street Journal reported, citing people familiar with the matter, that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. By Caroline Valetkevitch NEW YORK, Sept 6 (Reuters) - World stock indexes were lower while U.S. Treasury yields rose and the U.S. dollar hit its highest in six months on Wednesday after stronger-than-expected U.S. services sector data suggested inflation pressures remain. The Institute for Supply Management's (ISM) data showed the non-manufacturing PMI picked up in August, with new orders firming and businesses paying higher prices for inputs.
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Shares of Apple AAPL.O fell 3.2% after the Wall Street Journal reported, citing people familiar with the matter, that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. By Caroline Valetkevitch NEW YORK, Sept 6 (Reuters) - World stock indexes were lower while U.S. Treasury yields rose and the U.S. dollar hit its highest in six months on Wednesday after stronger-than-expected U.S. services sector data suggested inflation pressures remain. In other data, manufacturing activity in Germany, Britain and the euro zone declined, while their service sectors fell into contraction territory.
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Shares of Apple AAPL.O fell 3.2% after the Wall Street Journal reported, citing people familiar with the matter, that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. By Caroline Valetkevitch NEW YORK, Sept 6 (Reuters) - World stock indexes were lower while U.S. Treasury yields rose and the U.S. dollar hit its highest in six months on Wednesday after stronger-than-expected U.S. services sector data suggested inflation pressures remain. The Dow Jones Industrial Average .DJI fell 212.46 points, or 0.61%, to 34,429.51, the S&P 500 .SPX lost 37 points, or 0.82%, to 4,459.83 and the Nasdaq Composite .IXIC dropped 153.74 points, or 1.1%, to 13,867.21.
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Shares of Apple AAPL.O fell 3.2% after the Wall Street Journal reported, citing people familiar with the matter, that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. By Caroline Valetkevitch NEW YORK, Sept 6 (Reuters) - World stock indexes were lower while U.S. Treasury yields rose and the U.S. dollar hit its highest in six months on Wednesday after stronger-than-expected U.S. services sector data suggested inflation pressures remain. The Institute for Supply Management's (ISM) data showed the non-manufacturing PMI picked up in August, with new orders firming and businesses paying higher prices for inputs.
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13962.0
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2023-09-06 00:00:00 UTC
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3 Growth Stocks to Buy in September
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AAPL
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https://www.nasdaq.com/articles/3-growth-stocks-to-buy-in-september
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nan
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nan
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We're now into September, and that means many investors wonder if the September effect will be in place. This speaks to the historical trend of stocks underperforming in September compared to other months.
How you approach September may depend on whether you're an optimist or a pessimist. Sorry, no “I'm a realist" answers will be accepted. If you're more pessimistic, you'll join many others who view September and October as months to sell stocks and look for the safety of other asset classes.
But if you're an optimist, you may be willing to poke around at stocks, particularly from quality companies that may offer a buying opportunity. This isn't about being reckless; it's about being prudent. The best-in-class companies will continue to be solid investments regardless of what's happening in the economy at any given moment.
Here are three growth stocks that offer investors a buying opportunity in September.
Standing Out in a Tight Credit Market
For more than a year, the canary in the recessionary coal mine has been the uncomfortable, if not record, level of consumer credit card debt. That has government regulators looking to force credit card issuers to lower the late fees they can charge to as low as $8 from their current level between $31 and $40.
That's putting pressure on the stock of credit card issuers. However, analysts believe the American Express Company (NYSE: AXP) is better positioned to deal with this regulation. To be fair, many Amex cards allow consumers to carry balances. That wasn't always the case. Still, the company continues to cater to premium consumers who tend to have higher incomes.
The takeaway is that the company relies less on late fees as part of its revenue stream. This can allow investors to focus on other fundamentals. That starts with earnings. The company posted mixed results in its July earnings report. But it beat on the bottom line and raised its forward guidance.
American Express analyst ratings on MarketBeat give AXP stock an 8% upside. That would more than make up for the dip in the stock since the earnings report.
Buy the Dip After Investors Sell the News
Amgen, Inc. (NASDAQ: AMGN) has taken investors on a roller coaster ride over the last 12 months. AMGN stock is down sharply from its 52-week high and continues to fall since the news came out that the Federal Trade Commission (FTC) granted permission for the company to complete its $27.8 billion purchase of Horizon Therapeutics Public Limited Company (NASDAQ: HZNP).
Primarily due to uncertainty surrounding the FTC's decision, there wasn't a lot of conviction with AMGN stock. Since the news broke, there have been slightly more put options than call options. That means the stock could move lower.
However, Amgen is expected to increase earnings by 8% over the next year. Analysts may not fully appreciate that. However, on September 6, HSBC raised its price target for AMGN stock to $320, which is 25% higher than the current consensus price target.
There's Still Time to Take a Bite Out of Apple
Apple, Inc. (NASDAQ: AAPL) is up about 4.5% in the last month, but it's still below the highs of late July and early August. Is that enough growth to attract investors? It should, but not for the reasons you may think.
Many investors are focusing on Apple's upcoming launch event on September 12. If you're a fan of Apple products, seeing what new products the company will roll out is always interesting. This year, consumers and investors will focus on the company's iPhone 15.
I won't try to say that iPhone sales aren't important to Apple. But as many investors know, it's becoming a (slightly) smaller piece of the overall pie. The tech giant continues to grow its Wearables and Services business. And part of that includes Apple TV, which has captured about 6% of the streaming market.
That's still a far cry from Netflix, Inc. (NASDAQ: NFLX), Amazon.com, Inc. (NASDAQ: AMZN) and even The Walt Disney Company (NYSE: DIS). But, at $6.99 per month, the service offers great value and continues to expand into areas like live sports, which may make it more compelling.
Traders are likely to continue shorting AAPL stock. It's one of the most heavily shorted stocks. But now is a good time to consider nibbling on the stock if you have a long position. The Apple analyst ratings on MarketBeat give the stock a consensus price target of $198.86, which is 5.5% higher than its current price. However, several analysts are giving Apple much higher price targets.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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There's Still Time to Take a Bite Out of Apple Apple, Inc. (NASDAQ: AAPL) is up about 4.5% in the last month, but it's still below the highs of late July and early August. Traders are likely to continue shorting AAPL stock. If you're more pessimistic, you'll join many others who view September and October as months to sell stocks and look for the safety of other asset classes.
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There's Still Time to Take a Bite Out of Apple Apple, Inc. (NASDAQ: AAPL) is up about 4.5% in the last month, but it's still below the highs of late July and early August. Traders are likely to continue shorting AAPL stock. American Express analyst ratings on MarketBeat give AXP stock an 8% upside.
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There's Still Time to Take a Bite Out of Apple Apple, Inc. (NASDAQ: AAPL) is up about 4.5% in the last month, but it's still below the highs of late July and early August. Traders are likely to continue shorting AAPL stock. AMGN stock is down sharply from its 52-week high and continues to fall since the news came out that the Federal Trade Commission (FTC) granted permission for the company to complete its $27.8 billion purchase of Horizon Therapeutics Public Limited Company (NASDAQ: HZNP).
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There's Still Time to Take a Bite Out of Apple Apple, Inc. (NASDAQ: AAPL) is up about 4.5% in the last month, but it's still below the highs of late July and early August. Traders are likely to continue shorting AAPL stock. We're now into September, and that means many investors wonder if the September effect will be in place.
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13963.0
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2023-09-06 00:00:00 UTC
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3 Stocks the Smart Money Is Buying Hand Over Fist
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https://www.nasdaq.com/articles/3-stocks-the-smart-money-is-buying-hand-over-fist
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There’s always a palpable buzz about stocks the smart money is buying. These aren’t mere fleeting trends; they’re astute decisions of people with incredible financial acumen. However, given the market headwinds, it would be easy to believe that taking a defensive attitude is the only sensible course of action. Meanwhile, it’s essential to distinguish between those merely chasing trends and those making savvy investments.
As we probe the enormous array of investment opportunities, certain sectors stand out. Artificial intelligence, cloud computing, and payments are not merely glimmers but dazzling prospects set to dominate the investment horizon. Recent insights from PwC highlight this potential, predicting that the global artificial intelligence market alone will contribute a whopping $15.7 trillion to the global economy by 2030. Furthermore, as the evolving market offers prospective stability and growth, these three standout stocks promise resilience and massive returns in the years to come.
Palantir (PLTR)
Source: Iljanaresvara Studio / Shutterstock.com
Palantir (NYSE:PLTR) continues positioning itself as a potential juggernaut this year, rallying with an impressive 135% year-to-date gain on the back of the burgeoning demand for AI. Further bolstering this positive sentiment, the recent quarter shone big money scooping 1.38 billion of its shares. Heavyweights such as D.E Shaw and Co. and Scout Investment Inc. took note, splurging with purchases of $17.8 million and $12.1 million, respectively.
Moreover, Palantir’s first two quarters of 2023 reflected robust health. It recorded net incomes of $17 million and $28 million, showcasing its strength in its niche and its ability to execute effectively. A testament to its expanding footprint, the company celebrated a 38% year-over-year surge in its customer base.
Furthermore, with revenues hitting the staggering $533 million mark in the second quarter, Palantir announced a stock repurchase program that can reach up to $1.0 billion worth of outstanding Class A common stock. Additionally, whispers of a potential S&P 500 inclusion in 2024 hint at heightened visibility and more upside ahead.
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
Dominating the realms of personal computing, cloud prowess, and gaming, Microsoft (NASDAQ:MSFT) has continually enriched its shareholders. MSFT’s stock has triumphantly tripled in the past five years, standing tall among the elite mega-cap tech stocks. Its recent fiscal fourth quarter serves as a testament to this prowess, clocking a diluted earnings-per-share of $2.69 and revenue of 56.2 billion. Moreover, big money holds a whopping 70.82% of MSFT’s total shares.
Moreover, its Azure platform is significantly impacting the cloud computing arena, seeing a surge of customers transitioning workloads. Azure Arc’s momentum is particularly noteworthy, boasting an astounding 150% year-over-year customer bump. Meanwhile, Microsoft’s expected $68 billion Activision Blizzard (NASDAQ:ATVI) acquisition and hefty cash reserves foreshadow promising growth.
Additionally, the integration of Copilot into Microsoft 365, a generative AI tool with an additional $30 monthly charge, reinforces the firm’s robust pricing strength. Meanwhile, a luminous future lies ahead with TipRanks anticipating an 18% surge to a $390.97 target.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) showcased impressive strides year-to-date. However, the stock dived recently, unable to leap beyond the $200 threshold, after its disappointing showing in revenue growth in its most recent quarter, nudging it from a lofty $190 to a more grounded $174. As the company evolves from a hardware-centric to a services dynamo, its focus on integrating AI capabilities further solidifies its long-term growth prospects.
Discerning investors aren’t pushing the panic button due to Apple’s longstanding reputation of delivering consistent growth, boasting high margins, and fostering a fiercely loyal customer base. Moreover, Apple’s services revenue impressively jumped 8% to $21.2 billion, marking its evolution from primarily a hardware-focused entity to a burgeoning services company.
Even in a maturing consumer electronics market, Apple’s third-quarter earnings per share stood at $1.26 with 5% year-over-year growth, and coupled with a generous return of over $24 billion to its shareholders, Apple’s financial vigor is unquestionable. Consequently, 229 million of its shares were scooped by institutional investors recently.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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The post 3 Stocks the Smart Money Is Buying Hand Over Fist appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) showcased impressive strides year-to-date. Artificial intelligence, cloud computing, and payments are not merely glimmers but dazzling prospects set to dominate the investment horizon. Meanwhile, Microsoft’s expected $68 billion Activision Blizzard (NASDAQ:ATVI) acquisition and hefty cash reserves foreshadow promising growth.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) showcased impressive strides year-to-date. Palantir (PLTR) Source: Iljanaresvara Studio / Shutterstock.com Palantir (NYSE:PLTR) continues positioning itself as a potential juggernaut this year, rallying with an impressive 135% year-to-date gain on the back of the burgeoning demand for AI. Further bolstering this positive sentiment, the recent quarter shone big money scooping 1.38 billion of its shares.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) showcased impressive strides year-to-date. InvestorPlace - Stock Market News, Stock Advice & Trading Tips There’s always a palpable buzz about stocks the smart money is buying. Furthermore, with revenues hitting the staggering $533 million mark in the second quarter, Palantir announced a stock repurchase program that can reach up to $1.0 billion worth of outstanding Class A common stock.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) showcased impressive strides year-to-date. Furthermore, as the evolving market offers prospective stability and growth, these three standout stocks promise resilience and massive returns in the years to come. Furthermore, with revenues hitting the staggering $533 million mark in the second quarter, Palantir announced a stock repurchase program that can reach up to $1.0 billion worth of outstanding Class A common stock.
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13964.0
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2023-09-06 00:00:00 UTC
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US STOCKS-Wall St eyes lower open on renewed inflation worries, economic data in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-lower-open-on-renewed-inflation-worries-economic-data-in-focus
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nan
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nan
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By Shristi Achar A and Amruta Khandekar
Sept 6 (Reuters) - Wall Street was set to open lower on Wednesday as concerns about sticky inflation kept investors on edge ahead of key data, including the Federal Reserve's report on the U.S. economy, which could help determine the bank's interest rate path.
A rise in Treasury yields and oil prices had pushed stocks lower on Tuesday as signs of persistent inflationary pressures tempered expectations of a less hawkish Federal Reserve.
Investors now await a slew of fresh economic data due later in the day, including the S&P Global final U.S. composite Purchasing Managers' Index (PMI) and the ISM non-manufacturing PMI for hints on the state of the economy.
"The extension of output cuts by Russia and Saudi Arabia through to the end of the year is likely to add to inflationary pressures," said Russ Mould, investment director at AJ Bell in a note, adding the cuts could force the Fed to keep interest rates higher for longer.
Some analysts also said slowing economic growth in other parts of the world has hurt risk sentiment in recent days.
"If you look around the globe, China economic news is worsening, European macro news is not good. So at one point or another, that demand worry is going to impact the market," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
Investors are also focused on the Fed's "Beige Book", due at 2:00 p.m. ET, for a snapshot of the U.S. economy, ahead of the keenly awaited inflation data scheduled for next week and the Fed's policy decision on Sept. 20.
Traders' odds for a pause in interest rate hikes in the central bank's September meeting remained intact at 93%, with bets on a pause in November at 56.8%, according to the CME FedWatch Tool.
At 8:31 a.m. ET, Dow e-minis 1YMcv1 were down 81 points, or 0.23%, S&P 500 e-minis EScv1 were down 11 points, or 0.24%, and Nasdaq 100 e-minis NQcv1 were down 47 points, or 0.3%.
Shares of AppleAAPL.O slipped 0.7% before the bell as a report said China had ordered officials at central government agencies to not use iPhones and other foreign-branded devices for work, or bring them into their offices.
Shares of Alaska Air Group ALK.N, Southwest Airlines LUV.N and United Airlines UAL.O fell between 0.3% and 3.8% after the three airlines warned of higher fuel costs in the third quarter due to a jump in crude prices.
American Airlines AAL.O and Delta Air Lines DAL.N declined about 1% each.
GitlabGTLB.O gained 5.9% after the software coding platform posted a surprise profit for the second quarter.
Shares of RokuROKU.O climbed 9.3% after the video-streaming company said on Wednesday it would reduce its workforce by about 10% and limit new hiring.
General MillsGIS.N rose 0.7% after the Cheerios cereals-maker reaffirmed its financial targets for 2024.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru Editing by Vinay Dwivedi)
((Shristi.AcharA@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of AppleAAPL.O slipped 0.7% before the bell as a report said China had ordered officials at central government agencies to not use iPhones and other foreign-branded devices for work, or bring them into their offices. By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street was set to open lower on Wednesday as concerns about sticky inflation kept investors on edge ahead of key data, including the Federal Reserve's report on the U.S. economy, which could help determine the bank's interest rate path. A rise in Treasury yields and oil prices had pushed stocks lower on Tuesday as signs of persistent inflationary pressures tempered expectations of a less hawkish Federal Reserve.
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Shares of AppleAAPL.O slipped 0.7% before the bell as a report said China had ordered officials at central government agencies to not use iPhones and other foreign-branded devices for work, or bring them into their offices. By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street was set to open lower on Wednesday as concerns about sticky inflation kept investors on edge ahead of key data, including the Federal Reserve's report on the U.S. economy, which could help determine the bank's interest rate path. Investors now await a slew of fresh economic data due later in the day, including the S&P Global final U.S. composite Purchasing Managers' Index (PMI) and the ISM non-manufacturing PMI for hints on the state of the economy.
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Shares of AppleAAPL.O slipped 0.7% before the bell as a report said China had ordered officials at central government agencies to not use iPhones and other foreign-branded devices for work, or bring them into their offices. By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street was set to open lower on Wednesday as concerns about sticky inflation kept investors on edge ahead of key data, including the Federal Reserve's report on the U.S. economy, which could help determine the bank's interest rate path. Investors now await a slew of fresh economic data due later in the day, including the S&P Global final U.S. composite Purchasing Managers' Index (PMI) and the ISM non-manufacturing PMI for hints on the state of the economy.
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Shares of AppleAAPL.O slipped 0.7% before the bell as a report said China had ordered officials at central government agencies to not use iPhones and other foreign-branded devices for work, or bring them into their offices. By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street was set to open lower on Wednesday as concerns about sticky inflation kept investors on edge ahead of key data, including the Federal Reserve's report on the U.S. economy, which could help determine the bank's interest rate path. Investors now await a slew of fresh economic data due later in the day, including the S&P Global final U.S. composite Purchasing Managers' Index (PMI) and the ISM non-manufacturing PMI for hints on the state of the economy.
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2023-09-06 00:00:00 UTC
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Should Franklin U.S. Large Cap Multifactor Index ETF (FLQL) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-franklin-u.s.-large-cap-multifactor-index-etf-flql-be-on-your-investing-radar-5
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nan
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Franklin U.S. Large Cap Multifactor Index ETF (FLQL), a passively managed exchange traded fund launched on 04/26/2017.
The fund is sponsored by Franklin Templeton Investments. It has amassed assets over $910.57 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.86%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 35.10% of the portfolio. Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.91% of total assets, followed by Microsoft Corp (MSFT) and Eli Lilly + Co (LLY).
The top 10 holdings account for about 29.35% of total assets under management.
Performance and Risk
FLQL seeks to match the performance of the LibertyQ US Large Cap Equity Index before fees and expenses. The LibertyQ US Large Cap Equity Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 1000 Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 1000 Index that have favorable exposure to four investment style factors quality, value, momentum and low volatility.
The ETF has gained about 16.38% so far this year and is up about 16.20% in the last one year (as of 09/06/2023). In the past 52-week period, it has traded between $36.61 and $45.68.
The ETF has a beta of 0.92 and standard deviation of 16.14% for the trailing three-year period. With about 215 holdings, it effectively diversifies company-specific risk.
Alternatives
Franklin U.S. Large Cap Multifactor Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FLQL is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $353.55 billion in assets, SPDR S&P 500 ETF has $411.81 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.91% of total assets, followed by Microsoft Corp (MSFT) and Eli Lilly + Co (LLY). Click to get this free report Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. You should consider the Franklin U.S. Large Cap Multifactor Index ETF (FLQL), a passively managed exchange traded fund launched on 04/26/2017.
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Click to get this free report Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.91% of total assets, followed by Microsoft Corp (MSFT) and Eli Lilly + Co (LLY). You should consider the Franklin U.S. Large Cap Multifactor Index ETF (FLQL), a passively managed exchange traded fund launched on 04/26/2017.
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Click to get this free report Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.91% of total assets, followed by Microsoft Corp (MSFT) and Eli Lilly + Co (LLY). Alternatives Franklin U.S. Large Cap Multifactor Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.91% of total assets, followed by Microsoft Corp (MSFT) and Eli Lilly + Co (LLY). Click to get this free report Franklin U.S. Large Cap Multifactor Index ETF (FLQL): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. You should consider the Franklin U.S. Large Cap Multifactor Index ETF (FLQL), a passively managed exchange traded fund launched on 04/26/2017.
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2023-09-06 00:00:00 UTC
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US STOCKS-Wall St slides on renewed inflation worries, economic data in focus
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slides-on-renewed-inflation-worries-economic-data-in-focus
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Apple slips on report China bans iPhone use for govt officials
Lockheed Martin slips on F-35 jet delivery outlook cut
Roku jumps on plan to cut workforce
Fed's Beige Book due 2:00 pm ET
Indexes down: Dow 0.25%, S&P 0.56%, Nasdaq 0.90%
Updated at 10:07 a.m. ET/ 1407 GMT
By Shristi Achar A and Amruta Khandekar
Sept 6 (Reuters) - Wall Street's main indexes fell on Wednesday over concerns about sticky inflation as investors awaited the Federal Reserve's report on the U.S. economy for clues on the bank's interest rate path.
AppleAAPL.O was the biggest drag across the three major indexes, down 2.6% after a report said China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work.
Other megacaps also declined, with Tesla TSLA.O, Amazon AMZN.O and Nvidia NVDA.O down between 0.9% and 4.0% as Treasury yields moved higher after stronger-than-expected economic data.
Fueling rate-hike concerns and denting investor sentiment, data showed the ISM non-manufacturing Purchasing Managers' Index (PMI) came in at 54.5, compared with expectations of 52.5.
A recent uptick in oil prices has fueled fears of persistent inflationary pressures that could compel the Federal Reserve to keep rates higher for longer.
Slowing economic growth in other parts of the world has hurt risk sentiment in recent days, according to analysts.
"If you look around the globe, China economic news is worsening, European macro news is not good. So at one point or another, that demand worry is going to impact the market," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
Investors are also waiting for the Fed's "Beige Book", due at 2:00 p.m. ET, for a snapshot of the U.S. economy, ahead of the keenly awaited inflation data scheduled for next week and the Fed's policy decision on Sept. 20.
Traders' odds for a pause in interest rate hikes in the central bank's September meeting remained intact at 93%, with bets on a pause in November at 57.3%, according to the CME FedWatch Tool.
Boston Fed President Susan Collins stressed on the need for the central bank to "proceed carefully" as it takes its next monetary policy steps, further clouding the outlook for interest rates.
At 10:07 a.m. ET, the Dow Jones Industrial Average .DJI was down 85.80 points, or 0.25%, at 34,556.17, the S&P 500 .SPX was down 25.25 points, or 0.56%, at 4,471.58, and the Nasdaq Composite .IXIC was down 125.49 points, or 0.90%, at 13,895.46.
Lockheed MartinLMT.N dropped 2.6% after the U.S. weapons maker trimmed the delivery outlook for its F-35 jets, and delayed shipments of its updated Technology Refresh 3 (TR-3) jets.
GitlabGTLB.O gained 5.9% after the software coding platform posted a surprise profit for the second quarter.
Shares of RokuROKU.O climbed 9.1% after the video-streaming company said on Wednesday it would reduce its workforce by about 10% and limit new hiring.
General MillsGIS.N added 0.5% after the Cheerios cereals-maker reaffirmed its financial targets for 2024.
Declining issues outnumbered advancers for a 1.09-to-1 ratio on the NYSE and for a 1.50-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and 19 new lows, while the Nasdaq recorded 27 new highs and 78 new lows.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru Editing by Vinay Dwivedi)
((Shristi.AcharA@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AppleAAPL.O was the biggest drag across the three major indexes, down 2.6% after a report said China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. Apple slips on report China bans iPhone use for govt officials Lockheed Martin slips on F-35 jet delivery outlook cut Roku jumps on plan to cut workforce Fed's Beige Book due 2:00 pm ET Indexes down: Dow 0.25%, S&P 0.56%, Nasdaq 0.90% Updated at 10:07 a.m. ET/ 1407 GMT By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street's main indexes fell on Wednesday over concerns about sticky inflation as investors awaited the Federal Reserve's report on the U.S. economy for clues on the bank's interest rate path. Fueling rate-hike concerns and denting investor sentiment, data showed the ISM non-manufacturing Purchasing Managers' Index (PMI) came in at 54.5, compared with expectations of 52.5.
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AppleAAPL.O was the biggest drag across the three major indexes, down 2.6% after a report said China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. Apple slips on report China bans iPhone use for govt officials Lockheed Martin slips on F-35 jet delivery outlook cut Roku jumps on plan to cut workforce Fed's Beige Book due 2:00 pm ET Indexes down: Dow 0.25%, S&P 0.56%, Nasdaq 0.90% Updated at 10:07 a.m. ET/ 1407 GMT By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street's main indexes fell on Wednesday over concerns about sticky inflation as investors awaited the Federal Reserve's report on the U.S. economy for clues on the bank's interest rate path. Investors are also waiting for the Fed's "Beige Book", due at 2:00 p.m.
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AppleAAPL.O was the biggest drag across the three major indexes, down 2.6% after a report said China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. Apple slips on report China bans iPhone use for govt officials Lockheed Martin slips on F-35 jet delivery outlook cut Roku jumps on plan to cut workforce Fed's Beige Book due 2:00 pm ET Indexes down: Dow 0.25%, S&P 0.56%, Nasdaq 0.90% Updated at 10:07 a.m. ET/ 1407 GMT By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street's main indexes fell on Wednesday over concerns about sticky inflation as investors awaited the Federal Reserve's report on the U.S. economy for clues on the bank's interest rate path. Boston Fed President Susan Collins stressed on the need for the central bank to "proceed carefully" as it takes its next monetary policy steps, further clouding the outlook for interest rates.
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AppleAAPL.O was the biggest drag across the three major indexes, down 2.6% after a report said China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Apple slips on report China bans iPhone use for govt officials Lockheed Martin slips on F-35 jet delivery outlook cut Roku jumps on plan to cut workforce Fed's Beige Book due 2:00 pm ET Indexes down: Dow 0.25%, S&P 0.56%, Nasdaq 0.90% Updated at 10:07 a.m. ET/ 1407 GMT By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street's main indexes fell on Wednesday over concerns about sticky inflation as investors awaited the Federal Reserve's report on the U.S. economy for clues on the bank's interest rate path.
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13967.0
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2023-09-06 00:00:00 UTC
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7 Retirement Stocks That Every Long-Term Investor Should Own Now
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https://www.nasdaq.com/articles/7-retirement-stocks-that-every-long-term-investor-should-own-now
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Here’s a look at the top long-term retirement stocks to buy now. Building a solid retirement portfolio is all about identifying companies that can withstand any storm in the market. While it is interesting to earn passive income through them, it is important to look for stable companies that have a rock-solid balance sheet and can perform well in an inflation or a recession. A retirement portfolio should have a long-term outlook and not just focus on dividend stocks. In this article, I recommend seven retirement stocks that should be a part of your investment portfolio. These are the long-term retirement stocks you will never regret buying.
Long-term retirement stocks: Apple (AAPL)
Source: Moab Republic / Shutterstock
One of the best stocks for a retirement portfolio is the tech giant Apple (NASDAQ:AAPL). It enjoys the best position in the industry and has the finest products and services to offer. The one thing that sets Apple apart from the rest is its brand name and customer loyalty. AAPL stock has been on an upward momentum since the start of the year and is up 50% year-to-date (YTD).
The company enjoys a significant amount of free cash flow and has already produced a free cash flow of $90.6 billion in the first three quarters of the year. Even in a market recession, Apple can easily survive. With the company expanding its services segment offering and strengthening its stronghold across theglobal market Apple is here to stay and it will thrive. This is one retirement stock you wouldn’t regret holding onto.
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
What is better than investing in a retirement stock that also pays a steady dividend? Microsoft (NASDAQ:MSFT) is a tech giant that has been in the business for as long as I can remember. It has a suite of exceptional products and is now leveraging artificial intelligence (AI) to improve its performance.
It has integrated AI tools in Microsoft 365 Copilot that can be used with each business customer’s data and the company will be charging $30 per user per month for the same. This income will reflect in the coming quarter and I expect it to be a significant contributor to the total revenue.
The demand for Microsoft’s products will never die and this is why it is one of the top retirement stocks to own today. MSFT stock is up 36% YTD and the company has announced a quarterly dividend of $0.68. There is a high chance that it could hike the dividend in the coming years. With Microsoft, you enjoy passive income as well as capital appreciation.
Johnson & Johnson (JNJ)
Source: Alexander Tolstykh / Shutterstock.com
Despite dealing with several lawsuits, Johnson & Johnson (NYSE:JNJ) hasn’t taken a single step back. One of the largest healthcare companies, JNJ has several products that are industry stalwarts and continue to generate solid revenue for it. The company has spun off the consumer healthcare division and this will be beneficial for it since we will see better revenue numbers from the pharmaceutical and medical devices segment.
Johnson & Johnson has products that will never go out of demand and no matter the economy, consumers will be happy to spend on their health and wellbeing. JNJ stock is trading at $163 today and it has a dividend yield of 2.79%. The company has reported outstanding second-quarter results and they are proof of its financial strength.
It reported a revenue of $25.5 billion, up 6.3% year-over-year (YOY) and the pharmaceutical segment accounted for over 50% of the total sales in the quarter. Having consistently increased the dividends for 61 years, this Dividend King will be an ideal addition to your portfolio.
Procter & Gamble (PG)
Source: Jonathan Weiss / Shutterstock.com
One of the best retirement friendly stocks, Procter & Gamble (NYSE:PG) is a well-known name in the market with several global brands. The company has steadily increased the dividend for the last 66 years and announced a quarterly dividend of $0.94 per share, a 3% YOY rise. Despite inflation and high interest rates, the company had a strong 2023. It reported a net revenue of $20.6 billion, a 5% YOY rise, and an EPS of $1.37, a 13% rise for the fourth quarter of 2023.
The one reason to bet on this stock is its products that are necessities for many and will not go out of demand. Another reason is its diverse business model which allows the company to enjoy a steady income each year. The management believes in rewarding shareholders and has been doing so for years. It paid out $9 billion in dividends this year. Additionally, it expects to see an increase of 3% to 4% in revenue this year.
Berkshire Hathaway (BRK-A, BRK-B)
Source: Jonathan Weiss / Shutterstock.com
Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) is a top stock pick of Warren Buffett and one stock you can buy and hold forever. If you want to add it to your portfolio, you might want to consider the more affordable B-class shares. In the recent quarter, it reported a revenue of $85.39 billion, a 20.5% increase YOY, and its earnings before income tax increased by a whopping 543% to hit $44.6 billion.
A lot of investors are concerned about picking this stock due to Buffett’s age, but he has a team in place that can handle things well. Many investors consider it to be the best retirement stock in America. After reporting impressive financial results, the stock has hit an all-time high. BRB-B stock is trading at $360 today but it is still worth taking your position. The stock has a long way to go from here and it is one of the leading retirement investments.
Pepsi (PEP)
Source: FotograFFF / Shutterstock.com
A personal favorite, PepsiCo (NASDAQ:PEP) is a dividend aristocrat with a strong global presence. Known for delicious snacks and beverages, Pepsi has been around for many years and has become a household name today. It has raised its dividend for the last 50 years and enjoys a dividend yield of 2.84%. It fairs much better than many of its competitors.
The company reported strong financial numbers and has shown that it is resilient even in times of inflation. There are many reasons why Pepsi is one of the must-own stocks for retirees.
The current quarterly dividend payout is $1.27 and it can increase the dividends in the coming years. Having delivered blockbuster growth, the company raised its outlook for the year and now expects to generate 10% organic growth, up from 8% in the previous quarter. Its profit is increasing too and it has a growth profile that makes it an excellent retirement stock to own. It is steadily growing its market share and could generate good passive income for investors.
Alphabet (GOOG) (GOOGL)
Source: IgorGolovniov / Shutterstock.com
There are multiple reasons to own Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) in your retirement portfolio. The company has had an impressive run this year and reported better-than-expected financial results. It did see a drop in advertising revenue but considering its hold in the market, it wouldn’t take long for the company to see a rebound in the ad revenue.
That said, there is also significant revenue from cloud computing. It is one of the largest cloud infrastructure providers in the world, but still has the potential to increase its market share. Google Cloud is the fastest-growing segment of the company and it showed a 31% YOY growth. If the company can manage to increase its cloud share in the market, we will see even better revenue numbers.
However, one thing is certain, it is hard to imagine life without Google and it is here to stay for many years to come. GOOG stock is trading at $136 and looks undervalued to me. The strong financials and a solid brand name make it a stock to buy and hold forever.
On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.
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The post 7 Retirement Stocks That Every Long-Term Investor Should Own Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Long-term retirement stocks: Apple (AAPL) Source: Moab Republic / Shutterstock One of the best stocks for a retirement portfolio is the tech giant Apple (NASDAQ:AAPL). AAPL stock has been on an upward momentum since the start of the year and is up 50% year-to-date (YTD). While it is interesting to earn passive income through them, it is important to look for stable companies that have a rock-solid balance sheet and can perform well in an inflation or a recession.
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Long-term retirement stocks: Apple (AAPL) Source: Moab Republic / Shutterstock One of the best stocks for a retirement portfolio is the tech giant Apple (NASDAQ:AAPL). AAPL stock has been on an upward momentum since the start of the year and is up 50% year-to-date (YTD). Procter & Gamble (PG) Source: Jonathan Weiss / Shutterstock.com One of the best retirement friendly stocks, Procter & Gamble (NYSE:PG) is a well-known name in the market with several global brands.
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Long-term retirement stocks: Apple (AAPL) Source: Moab Republic / Shutterstock One of the best stocks for a retirement portfolio is the tech giant Apple (NASDAQ:AAPL). AAPL stock has been on an upward momentum since the start of the year and is up 50% year-to-date (YTD). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Here’s a look at the top long-term retirement stocks to buy now.
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Long-term retirement stocks: Apple (AAPL) Source: Moab Republic / Shutterstock One of the best stocks for a retirement portfolio is the tech giant Apple (NASDAQ:AAPL). AAPL stock has been on an upward momentum since the start of the year and is up 50% year-to-date (YTD). JNJ stock is trading at $163 today and it has a dividend yield of 2.79%.
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13968.0
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2023-09-06 00:00:00 UTC
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Should John Hancock Multifactor Large Cap ETF (JHML) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-john-hancock-multifactor-large-cap-etf-jhml-be-on-your-investing-radar-9
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The John Hancock Multifactor Large Cap ETF (JHML) was launched on 09/28/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by John Hancock. It has amassed assets over $780.07 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.29%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.42%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 23.20% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.61% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).
Performance and Risk
JHML seeks to match the performance of the John Hancock Dimensional Large Cap Index before fees and expenses. The John Hancock Dimensional Large Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are larger than that of the 801st largest U.S. company.
The ETF has added roughly 13.05% so far this year and is up about 13.06% in the last one year (as of 09/06/2023). In the past 52-week period, it has traded between $45.43 and $56.65.
The ETF has a beta of 1.01 and standard deviation of 17.57% for the trailing three-year period, making it a medium risk choice in the space. With about 776 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor Large Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, JHML is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $353.55 billion in assets, SPDR S&P 500 ETF has $411.81 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.61% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $780.07 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.61% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). The John Hancock Multifactor Large Cap ETF (JHML) was launched on 09/28/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.61% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Alternatives John Hancock Multifactor Large Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.61% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. The John Hancock Multifactor Large Cap ETF (JHML) was launched on 09/28/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
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2023-09-06 00:00:00 UTC
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Unveiling Bear Call Spread Screener Results for September 6th
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https://www.nasdaq.com/articles/unveiling-bear-call-spread-screener-results-for-september-6th
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A bear call spread is a type of vertical spread, meaning that two options within the same expiry month are being traded.
One call option is being sold, which generates a credit for the trader. Another call option is bought to provide protection against an adverse move.
The sold call is always closer to the stock price than the bought call.
As the name suggests, this trade does best when the stock declines after the trade is open.
However, there can be many cases where this trade can make a profit if the stock stays flat and even if it rises slightly.
Bear call spreads are risk defined trades, there are no naked options here, so they can be traded in retirement accounts such as an IRA.
Traders should have a bearish outlook on the stock and ideally look to enter when the stock has a high implied volatility rank.
Let’s take a look at Barchart’s Bear Call Spread Screener for September 6th:
As you can see, the screener shows some interesting Bear Call Spread trades on stocks such as AAPL, TXN, MSFT, NFLX, BAC, PINS and INTC.
Below are the full parameters for this scan:
Days to expiration: 15 to 60 days
Monthly Expirations
Security Type: Stock
Volume Leg 1: 100
Open Interest Leg 1: 500
Moneyness Leg 1: -10.00% to 0.00%
Breakeven Probability: Above 25%
Volume Leg 2: 100
Open Interest Leg 2: 500
Ask Price Leg 2: Greater than 0.05
Let’s look at the first line item – a Bear Call Spread on Apple stock.
Using the October 20 expiry, the trade would involve selling the $190 call and buying the $195 call.
That spread could be sold for around $2.35 which means the trader would receive $235 into their account. The maximum risk is $2365 for a total profit potential of 88.68% with a probability of 57.9%.
The breakeven price is $192.35. This can be calculated by taking the short call strike and adding the premium received.
As the spread is $5 wide, the maximum risk in the trade is 5 – 2.35 x 100 = $265.
The Barchart Technical Opinion rating is a 72% Buy with a Strengthening short term outlook on maintaining the current direction.
Let’s strengthen the screener by adding only stock with an 80% or greater Sell Rating.
This gives us these results:
Let’s analyze the third result – a Bear Call Spread on Citigroup.
This Bear Call Spread on C stock involves selling the $42-strike October call and buying the $43-strike call.
That spread could be sold for around $0.40 which means the trader would receive $40 into their account. The maximum risk is $0.60 for a total profit potential of 66.67% with a probability of 60.8%.
The breakeven price is $42.40.
The Barchart Technical Opinion rating is a 100% Sell with a Strongest short term outlook on maintaining the current direction.
Long term indicators fully support a continuation of the trend.
C is showing an IV Percentile of 4% and an IV Rank of 7.35%.
Mitigating Risk
Thankfully, Bear Call Spreads are risk defined trades, so they have some build in risk management. The most the Citigroup example can lose is $60.
Position sizing is important so that a 100% loss does not cause more than a 1-2% loss in total portfolio value.
Bear Call Spreads can also contain early assignment risk, so be mindful of that if the stock breaks through the short strike and it’s getting close to expiry.
Please remember that options are risky, and investors can lose 100% of their investment.
This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
More Stock Market News from Barchart
Hannon Armstrong Joins S&P SmallCap 600: Time to Buy?
Broad Market Sags on Global Economic Concerns and Higher Bond Yields
1 Top Chip Stock Ready to Ride Nvidia's AI Tailwinds Higher
Is Realty Income Corp. Stock a Buy Now For Its 5.39% Dividend Yield?
On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Let’s take a look at Barchart’s Bear Call Spread Screener for September 6th: As you can see, the screener shows some interesting Bear Call Spread trades on stocks such as AAPL, TXN, MSFT, NFLX, BAC, PINS and INTC. The Barchart Technical Opinion rating is a 72% Buy with a Strengthening short term outlook on maintaining the current direction. The Barchart Technical Opinion rating is a 100% Sell with a Strongest short term outlook on maintaining the current direction.
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Let’s take a look at Barchart’s Bear Call Spread Screener for September 6th: As you can see, the screener shows some interesting Bear Call Spread trades on stocks such as AAPL, TXN, MSFT, NFLX, BAC, PINS and INTC. Below are the full parameters for this scan: Days to expiration: 15 to 60 days Monthly Expirations Security Type: Stock Volume Leg 1: 100 Open Interest Leg 1: 500 Moneyness Leg 1: -10.00% to 0.00% Breakeven Probability: Above 25% Volume Leg 2: 100 Open Interest Leg 2: 500 Ask Price Leg 2: Greater than 0.05 Let’s look at the first line item – a Bear Call Spread on Apple stock. The Barchart Technical Opinion rating is a 72% Buy with a Strengthening short term outlook on maintaining the current direction.
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Let’s take a look at Barchart’s Bear Call Spread Screener for September 6th: As you can see, the screener shows some interesting Bear Call Spread trades on stocks such as AAPL, TXN, MSFT, NFLX, BAC, PINS and INTC. Below are the full parameters for this scan: Days to expiration: 15 to 60 days Monthly Expirations Security Type: Stock Volume Leg 1: 100 Open Interest Leg 1: 500 Moneyness Leg 1: -10.00% to 0.00% Breakeven Probability: Above 25% Volume Leg 2: 100 Open Interest Leg 2: 500 Ask Price Leg 2: Greater than 0.05 Let’s look at the first line item – a Bear Call Spread on Apple stock. This Bear Call Spread on C stock involves selling the $42-strike October call and buying the $43-strike call.
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Let’s take a look at Barchart’s Bear Call Spread Screener for September 6th: As you can see, the screener shows some interesting Bear Call Spread trades on stocks such as AAPL, TXN, MSFT, NFLX, BAC, PINS and INTC. A bear call spread is a type of vertical spread, meaning that two options within the same expiry month are being traded. The sold call is always closer to the stock price than the bought call.
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13970.0
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2023-09-06 00:00:00 UTC
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Big Tech's core businesses face overhaul under EU tech rules
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https://www.nasdaq.com/articles/big-techs-core-businesses-face-overhaul-under-eu-tech-rules-0
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By Supantha Mukherjee
STOCKHOLM, Sept 6 (Reuters) - The EU Commission on Wednesday designated 22 services of six major tech companies as "gatekeepers" of online services providing messaging to video sharing in its latest crackdown on Big Tech.
The firms are Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft MSFT.O and TikTok owner ByteDance.
Under the DMA, which came into force in November, companies with more than 45 million monthly active users and a market capitalisation of 75 billion euros ($82 billion) are considered gatekeepers providing a core platform service.
Businesses labelled as such will be required to make their messaging apps interoperate with rivals and let users decide which apps to pre-install on their devices.
Alphabet's Google had the highest number of services, including Android operating system, Maps and Search, which would face tougher rules. Meta's Facebook, Instagram, Marketplace and WhatsApp also qualified as gatekeepers.
The companies will have six months to demonstrate their compliance with their obligations and can be fined up to 10% of their annual global turnover for DMA violations.
"It's D-Day for #DMA!," EU industry chief Thierry Breton said on X, formerly known as Twitter. "The most impactful online companies will now have to play by our EU rules."
A Microsoft spokesperson said it accepts its gatekeeper designation, while Meta, Google and Amazon spokespersons said they were reviewing the designations.
Apple and TikTok were less welcoming.
TikTok said it "fundamentally disagree with this decision" and "disappointed that no market investigation was conducted prior to this decision and are evaluating our next steps."
An Apple spokesperson said the company remained "very concerned about the privacy and data security risks the DMA poses for our users."
The iPhone maker had earlier raised concerns that the DMA would lead to more installing of apps that do not come via Apple's App Store, or "side-loading".
"The Commission should balance the need to protect user security and privacy with the very real risk that gatekeeper app stores will use security and privacy as excuses to dilute compliance with their DMA obligations," said Stavroula Vryna, partner at law firm Clifford Chance.
Alphabet's Gmail, Microsoft's Outlook and Samsung's browser were exempted after the companies provided sufficiently justified arguments showing that these services do not qualify as gatekeepers, the Commission said.
The Commission has also opened four market investigations to further assess Microsoft's and Apple's submissions that some of their core platforms such as Bing, Edge and Microsoft Advertising, and Apple's iMessage services do not qualify as gateways.
"iMessage is designed and marketed for personal consumer communications, and we look forward to explaining to the commission why iMessage is outside the scope of the DMA," an Apple spokesperson said.
(Reporting by Supantha Mukherjee in Stockholm, Foo Yun Chee in Brussels and Martin Coulter in London; editing by Jason Neely and David Evans)
((supantha.mukherjee@thomsonreuters.com; +46 70 721 1004; Reuters Messaging: supantha.mukherjee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The firms are Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft MSFT.O and TikTok owner ByteDance. Alphabet's Google had the highest number of services, including Android operating system, Maps and Search, which would face tougher rules. An Apple spokesperson said the company remained "very concerned about the privacy and data security risks the DMA poses for our users."
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The firms are Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft MSFT.O and TikTok owner ByteDance. By Supantha Mukherjee STOCKHOLM, Sept 6 (Reuters) - The EU Commission on Wednesday designated 22 services of six major tech companies as "gatekeepers" of online services providing messaging to video sharing in its latest crackdown on Big Tech. Under the DMA, which came into force in November, companies with more than 45 million monthly active users and a market capitalisation of 75 billion euros ($82 billion) are considered gatekeepers providing a core platform service.
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The firms are Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft MSFT.O and TikTok owner ByteDance. By Supantha Mukherjee STOCKHOLM, Sept 6 (Reuters) - The EU Commission on Wednesday designated 22 services of six major tech companies as "gatekeepers" of online services providing messaging to video sharing in its latest crackdown on Big Tech. "The Commission should balance the need to protect user security and privacy with the very real risk that gatekeeper app stores will use security and privacy as excuses to dilute compliance with their DMA obligations," said Stavroula Vryna, partner at law firm Clifford Chance.
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The firms are Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft MSFT.O and TikTok owner ByteDance. By Supantha Mukherjee STOCKHOLM, Sept 6 (Reuters) - The EU Commission on Wednesday designated 22 services of six major tech companies as "gatekeepers" of online services providing messaging to video sharing in its latest crackdown on Big Tech. A Microsoft spokesperson said it accepts its gatekeeper designation, while Meta, Google and Amazon spokespersons said they were reviewing the designations.
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13971.0
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2023-09-06 00:00:00 UTC
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The 3 Best Tech Funds to Buy Now: September 2023
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https://www.nasdaq.com/articles/the-3-best-tech-funds-to-buy-now%3A-september-2023
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Tech stocks and related tech ETFs have made a tremendous recovery in 2023 following last year’s bear market. With valuations back on the upswing, investors should be judicious in picking the best tech funds going forward to ensure they get good value for their purchases.
These three tech ETFs give investors exposure to much more than just the mega-cap tech titans. In doing so, they offer investors access to many smaller and faster-growing tech firms along with some sharply discounted companies today and even a potential income kicker on top. Let’s dive into these three top tech ETFs for September 2023.
Invesco S&P 500 Equal Weight Technology ETF (RSPT)
Source: SHUN_J / Shutterstock
One big concern investors often have with tech funds is that they have too much exposure to the tech titans. The FAANG stocks — or whatever acronym you want to use today — have come to dominate the overall Nasdaq index.
The Invesco S&P 500 Equal Weight Technology ETF (NYSEARCA:RSPT), which uses an equal weighting approach to its portfolio, allows investors to get broad tech exposure without going all-in on the tech titans. Other funds, like the Invesco QQQ Trust ETF (NASDAQ:QQQ), have the top five companies making up more than 36% of the entire index. In other words, an investor buying into the well-known tech ETF may be getting way more Apple (NASDAQ:AAPL) or Microsoft (NASDAQ:MSFT) exposure than they expected. Given the valuation concerns around several of the large tech companies today, there is reason to think that smaller and more nimble tech firms will outperform going forward.
RSPT owns all the technology companies which make up the S&P 500, which is currently approximately 68 firms. Each of these 68 companies makes up about 1.5% of the entire portfolio. Smaller and, in my opinion, more promising firms such as EPAM Systems (NYSE:EPAM) and CDW Corp (NYSE:CDW) get equal weighting in the portfolio to firms like Apple and Microsoft. Given the tendency for smaller firms to have more growth potential, this equal weight approach should serve tech investors well.
Nasdaq Technology Dividend Index ETF (TDIV)
Source: Shutterstock
Another common complaint with tech stock ETFs is that they barely offer any dividends.
Capital gains are wonderful, of course. But investors often buy ETFs to get a solid income stream as well. Enter the First Trust Nasdaq Technology Dividend Index ETF (NYSEARCA:TDIV), which accounts for this issue.
TDIV owns 92 different dividend-paying technology companies. It gives investors wide diversification within that category, covering everything from software and semiconductors to hardware, communications and networking equipment.
TDIV shares currently offer a 1.88% dividend yield. That’s not a huge sum, but it is ahead of the S&P 500 Index as a whole, and it’s far ahead of the Nasdaq 100’s yield. Want tech stocks with a healthy dollop of yield on top? Look no further.
ETFMG Prime Mobile Payments ETF (IPAY)
Source: Maxx-Studio / Shutterstock
Another of the best tech funds for September 2023 is the ETFMG Prime Mobile Payments ETF (NYSEARCA:IPAY).
The payments industry has underperformed over the past 18 months as adoption has slowed down after the e-commerce boom during the early days of the pandemic. That, combined with deflating valuation ratios, have led to a full-on collapse in stock prices across many companies in the industry.
This makes it a great time to add IPAY shares during this lull. IPAY is down about 40% from its 2021 peak, and shares are merely flat over the past year despite the sharp rally in other parts of the tech ecosystem. This gives IPAY shares plenty of room to catch up going forward.
IPAY also gives investors exposure across the financial technology space. Top ten holdings include a broad spectrum ranging from credit card issuers to merchant processors and even fast-moving FinTech payments players such as Uruguay’s dLocal (NASDAQ:DLO). This gives investors a nice mix of stable payments giants and some nimble disruptors within the same tech ETF package.
On the date of publication, Ian Bezek held a long position in EPAM stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.
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The post The 3 Best Tech Funds to Buy Now: September 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In other words, an investor buying into the well-known tech ETF may be getting way more Apple (NASDAQ:AAPL) or Microsoft (NASDAQ:MSFT) exposure than they expected. In doing so, they offer investors access to many smaller and faster-growing tech firms along with some sharply discounted companies today and even a potential income kicker on top. Top ten holdings include a broad spectrum ranging from credit card issuers to merchant processors and even fast-moving FinTech payments players such as Uruguay’s dLocal (NASDAQ:DLO).
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In other words, an investor buying into the well-known tech ETF may be getting way more Apple (NASDAQ:AAPL) or Microsoft (NASDAQ:MSFT) exposure than they expected. The Invesco S&P 500 Equal Weight Technology ETF (NYSEARCA:RSPT), which uses an equal weighting approach to its portfolio, allows investors to get broad tech exposure without going all-in on the tech titans. Nasdaq Technology Dividend Index ETF (TDIV) Source: Shutterstock Another common complaint with tech stock ETFs is that they barely offer any dividends.
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In other words, an investor buying into the well-known tech ETF may be getting way more Apple (NASDAQ:AAPL) or Microsoft (NASDAQ:MSFT) exposure than they expected. Invesco S&P 500 Equal Weight Technology ETF (RSPT) Source: SHUN_J / Shutterstock One big concern investors often have with tech funds is that they have too much exposure to the tech titans. The Invesco S&P 500 Equal Weight Technology ETF (NYSEARCA:RSPT), which uses an equal weighting approach to its portfolio, allows investors to get broad tech exposure without going all-in on the tech titans.
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In other words, an investor buying into the well-known tech ETF may be getting way more Apple (NASDAQ:AAPL) or Microsoft (NASDAQ:MSFT) exposure than they expected. Given the valuation concerns around several of the large tech companies today, there is reason to think that smaller and more nimble tech firms will outperform going forward. Nasdaq Technology Dividend Index ETF (TDIV) Source: Shutterstock Another common complaint with tech stock ETFs is that they barely offer any dividends.
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13972.0
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2023-09-06 00:00:00 UTC
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US STOCKS-Futures fall as inflation concerns resurface, investors await economic data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-fall-as-inflation-concerns-resurface-investors-await-economic-data
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By Shristi Achar A and Amruta Khandekar
Sept 6 (Reuters) - Wall Street futures fell on Wednesday as concerns about sticky inflation kept investors on edge ahead of key data, including the Federal Reserve's report on the U.S. economy, which could help determine the central bank's interest rate path.
A rise in Treasury yields and oil prices had pushed stocks lower on Tuesday as signs of persistent inflationary pressures tempered expectations of a less hawkish Federal Reserve.
Investors now await a slew of fresh economic data due later in the day, including the S&P Global final U.S. composite Purchasing Managers' Index (PMI) and the ISM non-manufacturing PMI for hints on the state of the economy.
"The extension of output cuts by Russia and Saudi Arabia through to the end of the year is likely to add to inflationary pressures," said Russ Mould, investment director at AJ Bell in a note.
"It may force the Fed to keep interest rates higher for longer and this is helping undercut the more comfortable narrative that the trajectory for rates is on the way to shifting."
Investors are also focused on the Fed's "Beige Book", due at 2:00 p.m. ET, for a snapshot of the U.S. economy, ahead of the keenly awaited inflation data scheduled for next week and the Fed's policy decision on Sept. 20.
Traders' odds for a pause in interest rate hikes in the central bank's September meeting remained intact at 93%, with bets on a pause in November at 57.8%, according to the CME FedWatch Tool.
Investors will also parse comments from Boston Fed President Susan Collins and Dallas Fed President Lorie Logan later in the day.
At 7:07 a.m. ET, Dow e-minis 1YMcv1 were down 76 points, or 0.22%, S&P 500 e-minis EScv1 were down 11.5 points, or 0.26%, and Nasdaq 100 e-minis NQcv1 were down 50 points, or 0.32%.
Shares of AppleAAPL.O slipped 0.7% before the bell as a report said China had ordered officials at central government agencies to not use iPhones and other foreign-branded devices for work, or bring them into their offices.
Shares of Alaska Air Group ALK.N, Southwest Airlines LUV.N and United Airlines UAL.O fell between 0.6% and 3.3% after the three airlines warned of higher fuel costs in the third quarter due to a jump in crude prices.
GitlabGTLB.O gained 6.1% after the software coding platform posted a surprise profit for the second quarter.
Shares of RokuROKU.O climbed 8.6% after the video-streaming company said on Wednesday it would reduce its workforce by about 10% and limit new hiring.
General MillsGIS.N rose 1.4% after the Cheerios cereals-maker reaffirmed its financial targets for 2024.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru Editing by Vinay Dwivedi)
((Shristi.AcharA@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of AppleAAPL.O slipped 0.7% before the bell as a report said China had ordered officials at central government agencies to not use iPhones and other foreign-branded devices for work, or bring them into their offices. By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street futures fell on Wednesday as concerns about sticky inflation kept investors on edge ahead of key data, including the Federal Reserve's report on the U.S. economy, which could help determine the central bank's interest rate path. A rise in Treasury yields and oil prices had pushed stocks lower on Tuesday as signs of persistent inflationary pressures tempered expectations of a less hawkish Federal Reserve.
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Shares of AppleAAPL.O slipped 0.7% before the bell as a report said China had ordered officials at central government agencies to not use iPhones and other foreign-branded devices for work, or bring them into their offices. By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street futures fell on Wednesday as concerns about sticky inflation kept investors on edge ahead of key data, including the Federal Reserve's report on the U.S. economy, which could help determine the central bank's interest rate path. ET, for a snapshot of the U.S. economy, ahead of the keenly awaited inflation data scheduled for next week and the Fed's policy decision on Sept. 20.
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Shares of AppleAAPL.O slipped 0.7% before the bell as a report said China had ordered officials at central government agencies to not use iPhones and other foreign-branded devices for work, or bring them into their offices. By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street futures fell on Wednesday as concerns about sticky inflation kept investors on edge ahead of key data, including the Federal Reserve's report on the U.S. economy, which could help determine the central bank's interest rate path. Investors now await a slew of fresh economic data due later in the day, including the S&P Global final U.S. composite Purchasing Managers' Index (PMI) and the ISM non-manufacturing PMI for hints on the state of the economy.
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Shares of AppleAAPL.O slipped 0.7% before the bell as a report said China had ordered officials at central government agencies to not use iPhones and other foreign-branded devices for work, or bring them into their offices. By Shristi Achar A and Amruta Khandekar Sept 6 (Reuters) - Wall Street futures fell on Wednesday as concerns about sticky inflation kept investors on edge ahead of key data, including the Federal Reserve's report on the U.S. economy, which could help determine the central bank's interest rate path. A rise in Treasury yields and oil prices had pushed stocks lower on Tuesday as signs of persistent inflationary pressures tempered expectations of a less hawkish Federal Reserve.
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13973.0
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2023-09-06 00:00:00 UTC
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US STOCKS-Wall St slides as economic data stokes inflation and interest rate worries
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https://www.nasdaq.com/articles/us-stocks-wall-st-slides-as-economic-data-stokes-inflation-and-interest-rate-worries-0
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By Sinéad Carew and Shristi Achar A
Sept 6 (Reuters) - Wall Street's three major averages closed lower on Wednesday with the Nasdaq's 1% loss leading declines after stronger-than-expected services sector data fueled concerns that still sticky inflation would mean that interest rates stay higher for longer.
The Institute for Supply Management (ISM) said on Wednesday its non-manufacturing Purchasing Managers' Index rose to 54.5 last month against expectations of 52.5, while a gauge of prices paid by service-sector businesses for inputs increased.
Traders were betting on a 93% chance that the Federal Reserve would leave interest rates unchanged after its meeting on Sept. 20, while bets on another pause in November were around 57%, CME Group's FedWatch Tool showed.
"The stronger-than-expected ISM services data shows that investors are still not very skilled at reading the post-pandemic tea leaves," said Carol Schleif, chief investment officer at BMO's family office in Minneapolis.
While market participants have been hoping for interest rate cuts soon, Schleif said the data shows a strong economy and inflation that is not coming down "as fast as the Fed would need to start cutting rates any time in the foreseeable future."
Earlier in the day Boston Fed President Susan Collins stressed the need for the central bank to "proceed carefully" with its next monetary policy steps.
The prospect of higher rates put particular pressure on growth stocks with the S&P 500 growth index .IGX underperforming the benchmark throughout the session. Equity investors were also reacting to rising yields in 10-year US10YT=RR and the two-year US2YT=RR U.S. Treasuries.
"Growth stocks have been pricing in the idea that inflation has been well anchored and that the Fed's going to cut. If that idea no longer holds they're going to be vulnerable," said Patrick Kaser, portfolio manager from Brandywine Global.
On top of rate concerns, Apple Inc AAPL.O, which finished down 3.6%, was pressured by a report that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work.
The Dow Jones Industrial Average .DJI fell 198.78 points, or 0.57%, to 34,443.19, the S&P 500 .SPX lost 31.35 points, or 0.70%, at 4,465.48 and the Nasdaq Composite .IXIC dropped 148.48 points, or 1.06%, to 13,872.47.
Of the S&P 500's 11 major industry sectors, growth-heavy technology .SPLRCT was the biggest decliner, losing 1.4%, while defensive utilities .SPLRCU led gains, up 0.2%. Energy .SPNY was the only other gainer, up 0.1% with support from higher oil prices.
Oil futures settled up on Wednesday, adding to recent gains, which fueled concerns about inflationary pressure.
The S&P 500 showed little reaction to the Fed's "Beige Book" snapshot of the U.S. economy a week ahead of the keenly awaited August inflation data and the Fed's rate decision on Sept. 20.
The report showed "modest" U.S. economic growth in recent weeks while job growth was "subdued," and inflation slowed in most parts of the country.
Lockheed MartinLMT.N shares sank 4.8% after the U.S. weapons maker trimmed the delivery outlook for its F-35 jets.
RokuROKU.O shares rose 2.9% after the company said it would reduce its workforce by about 10% and limit new hiring.
Declining issues outnumbered advancers on the NYSE by a 2.05-to-1 ratio; on Nasdaq, a 1.97-to-1 ratio favored decliners.
The S&P 500 posted six new 52-week highs and 25 new lows; the Nasdaq Composite recorded 34 new highs and 174 new lows.
On U.S. exchanges 9.39 billion shares changed hands compared with the 10.17 billion moving average for the last 20 sessions.
(Reporting by Sinéad Carew in New York, Shristi Achar A and Amruta Khandekar in Bengaluru Editing by Vinay Dwivedi and Richard Chang)
((sinead.carew@thomsonreuters.com; +13322191897))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On top of rate concerns, Apple Inc AAPL.O, which finished down 3.6%, was pressured by a report that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. By Sinéad Carew and Shristi Achar A Sept 6 (Reuters) - Wall Street's three major averages closed lower on Wednesday with the Nasdaq's 1% loss leading declines after stronger-than-expected services sector data fueled concerns that still sticky inflation would mean that interest rates stay higher for longer. Earlier in the day Boston Fed President Susan Collins stressed the need for the central bank to "proceed carefully" with its next monetary policy steps.
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On top of rate concerns, Apple Inc AAPL.O, which finished down 3.6%, was pressured by a report that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. By Sinéad Carew and Shristi Achar A Sept 6 (Reuters) - Wall Street's three major averages closed lower on Wednesday with the Nasdaq's 1% loss leading declines after stronger-than-expected services sector data fueled concerns that still sticky inflation would mean that interest rates stay higher for longer. "The stronger-than-expected ISM services data shows that investors are still not very skilled at reading the post-pandemic tea leaves," said Carol Schleif, chief investment officer at BMO's family office in Minneapolis.
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On top of rate concerns, Apple Inc AAPL.O, which finished down 3.6%, was pressured by a report that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. By Sinéad Carew and Shristi Achar A Sept 6 (Reuters) - Wall Street's three major averages closed lower on Wednesday with the Nasdaq's 1% loss leading declines after stronger-than-expected services sector data fueled concerns that still sticky inflation would mean that interest rates stay higher for longer. While market participants have been hoping for interest rate cuts soon, Schleif said the data shows a strong economy and inflation that is not coming down "as fast as the Fed would need to start cutting rates any time in the foreseeable future."
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On top of rate concerns, Apple Inc AAPL.O, which finished down 3.6%, was pressured by a report that China had banned officials at central government agencies from using iPhones and other foreign-branded devices for work. By Sinéad Carew and Shristi Achar A Sept 6 (Reuters) - Wall Street's three major averages closed lower on Wednesday with the Nasdaq's 1% loss leading declines after stronger-than-expected services sector data fueled concerns that still sticky inflation would mean that interest rates stay higher for longer. Traders were betting on a 93% chance that the Federal Reserve would leave interest rates unchanged after its meeting on Sept. 20, while bets on another pause in November were around 57%, CME Group's FedWatch Tool showed.
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13974.0
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2023-09-06 00:00:00 UTC
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US STOCKS-Futures fall as investors await more economic data to assess Fed rate path
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-fall-as-investors-await-more-economic-data-to-assess-fed-rate-path
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.12%, S&P 0.21%, Nasdaq 0.37%
Sept 6 (Reuters) - Wall Street futures fell on Wednesday as investors awaited key data including the Federal Reserve's report on the state of the U.S. economy for clues on the central bank's interest rate path.
A rise in Treasury yields and oil prices pushed stocks lower on Tuesday as signs of sticky inflation stoked investor worries about the Fed's monetary policy trajectory.
Investors await a slew of fresh economic data due later in the day, including the S&P Global flash U.S. composite PMI index and the ISM non-manufacturing PMI for signs of cooling inflation.
"The extension of output cuts by Russia and Saudi Arabia through to the end of the year is likely to add to inflationary pressures," said Russ Mould, investment director at AJ Bell in a note.
"It may force the Fed to keep interest rates higher for longer and this is helping undercut the more comfortable narrative that the trajectory for rates is on the way to shifting."
Investors are also focused on the Fed's "Beige Book", due at 2:00 p.m. ET, for a snapshot of the U.S. economy, ahead of the keenly awaited inflation data scheduled for next week and the Fed's policy decision on Sept. 20.
Traders' odds for a pause in interest rate hikes in the central bank's September meeting remained intact at 93%, with bets on a pause in November at 54.3%, according to the CME FedWatch Tool.
Investors will also parse comments from Boston Fed President Susan Collins and Dallas Fed President Lorie Logan later in the day.
At 5:31 a.m. ET, Dow e-minis 1YMcv1 were down 42 points, or 0.12%, S&P 500 e-minis EScv1 were down 9.25 points, or 0.21%, and Nasdaq 100 e-minis NQcv1 were down 57.5 points, or 0.37%.
Shares of AppleAAPL.O slipped 0.7% before the bell as a report said China had ordered officials at central government agencies to not use iPhones and other foreign-branded devices for work, or bring them into their offices.
TellurianTELL.A added 4.4% after the oil and gas company signed a supply agreement with Baker Hughes BKR.O for its U.S. liquefied natural gas (LNG) export project.
GitlabGTLB.O gained 6.2% after the software coding platform posted a surprise profit for the second quarter.
(Reporting by Shristi Achar A in Bengaluru Editing by Vinay Dwivedi)
((Shristi.AcharA@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of AppleAAPL.O slipped 0.7% before the bell as a report said China had ordered officials at central government agencies to not use iPhones and other foreign-branded devices for work, or bring them into their offices. A rise in Treasury yields and oil prices pushed stocks lower on Tuesday as signs of sticky inflation stoked investor worries about the Fed's monetary policy trajectory. "The extension of output cuts by Russia and Saudi Arabia through to the end of the year is likely to add to inflationary pressures," said Russ Mould, investment director at AJ Bell in a note.
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Shares of AppleAAPL.O slipped 0.7% before the bell as a report said China had ordered officials at central government agencies to not use iPhones and other foreign-branded devices for work, or bring them into their offices. Futures down: Dow 0.12%, S&P 0.21%, Nasdaq 0.37% Sept 6 (Reuters) - Wall Street futures fell on Wednesday as investors awaited key data including the Federal Reserve's report on the state of the U.S. economy for clues on the central bank's interest rate path. ET, for a snapshot of the U.S. economy, ahead of the keenly awaited inflation data scheduled for next week and the Fed's policy decision on Sept. 20.
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Shares of AppleAAPL.O slipped 0.7% before the bell as a report said China had ordered officials at central government agencies to not use iPhones and other foreign-branded devices for work, or bring them into their offices. Futures down: Dow 0.12%, S&P 0.21%, Nasdaq 0.37% Sept 6 (Reuters) - Wall Street futures fell on Wednesday as investors awaited key data including the Federal Reserve's report on the state of the U.S. economy for clues on the central bank's interest rate path. A rise in Treasury yields and oil prices pushed stocks lower on Tuesday as signs of sticky inflation stoked investor worries about the Fed's monetary policy trajectory.
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Shares of AppleAAPL.O slipped 0.7% before the bell as a report said China had ordered officials at central government agencies to not use iPhones and other foreign-branded devices for work, or bring them into their offices. Futures down: Dow 0.12%, S&P 0.21%, Nasdaq 0.37% Sept 6 (Reuters) - Wall Street futures fell on Wednesday as investors awaited key data including the Federal Reserve's report on the state of the U.S. economy for clues on the central bank's interest rate path. Investors await a slew of fresh economic data due later in the day, including the S&P Global flash U.S. composite PMI index and the ISM non-manufacturing PMI for signs of cooling inflation.
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13975.0
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2023-09-06 00:00:00 UTC
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Big Tech's core businesses face overhaul under EU tech rules
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https://www.nasdaq.com/articles/big-techs-core-businesses-face-overhaul-under-eu-tech-rules
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By Supantha Mukherjee
STOCKHOLM, Sept 6 (Reuters) - The EU Commission on Wednesday designated 22 services of six major tech companies as "gatekeepers" of online services providing messaging to video sharing in its latest crackdown on Big Tech.
The firms are Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft MSFT.O and TikTok owner ByteDance.
A list of dos and don'ts set out in the European Union's Digital Markets Act (DMA) will force the sector to radically reshape its core business practices, a move which may encourage similar steps in other countries.
Under the DMA, which came into force in November, companies with more than 45 million monthly active users and a market capitalisation of 75 billion euros ($82 billion) are considered gatekeepers providing a core platform service.
Businesses labeled as such will be required to make their messaging apps interoperate with rivals and let users decide which apps to pre-install on their devices.
Alphabet's Google had the highest number of services, including Android operating system, Maps and Search, to face tougher rules. Meta's Facebook, Instagram, Marketplace and WhatsApp also qualified as gatekeepers.
"While gatekeepers have six months to demonstrate their compliance with their obligations, they must immediately appoint a compliance officer in place, directly reporting to the Board, and inform the Commission of any planned merger or acquisition," EU industry chief Thierry Breton said on Tuesday.
Companies can be fined up to 10% of their annual global turnover for DMA violations.
Alphabet's Gmail, Microsoft's Outlook and Samsung's browser were exempted after the companies provided sufficiently justified arguments showing that these services do not qualify as gatekeepers, the Commission said.
"Over the last few months we have been working to meet the new requirements of the Digital Markets Act and we will now review today's designation decision in full," said Oliver Bethell, director of legal at Google.
The Commission has also opened four market investigations to further assess Microsoft's and Apple's submissions that some of their core platforms such as Bing, Edge and Microsoft Advertising, and Apple's iMessage services do not qualify as gateways.
(Reporting by Supantha Mukherjee in Stockholm and Foo Yun Chee in Brussels; editing by Jason Neely)
((supantha.mukherjee@thomsonreuters.com; +46 70 721 1004; Reuters Messaging: supantha.mukherjee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The firms are Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft MSFT.O and TikTok owner ByteDance. A list of dos and don'ts set out in the European Union's Digital Markets Act (DMA) will force the sector to radically reshape its core business practices, a move which may encourage similar steps in other countries. Alphabet's Gmail, Microsoft's Outlook and Samsung's browser were exempted after the companies provided sufficiently justified arguments showing that these services do not qualify as gatekeepers, the Commission said.
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The firms are Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft MSFT.O and TikTok owner ByteDance. By Supantha Mukherjee STOCKHOLM, Sept 6 (Reuters) - The EU Commission on Wednesday designated 22 services of six major tech companies as "gatekeepers" of online services providing messaging to video sharing in its latest crackdown on Big Tech. A list of dos and don'ts set out in the European Union's Digital Markets Act (DMA) will force the sector to radically reshape its core business practices, a move which may encourage similar steps in other countries.
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The firms are Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft MSFT.O and TikTok owner ByteDance. By Supantha Mukherjee STOCKHOLM, Sept 6 (Reuters) - The EU Commission on Wednesday designated 22 services of six major tech companies as "gatekeepers" of online services providing messaging to video sharing in its latest crackdown on Big Tech. Under the DMA, which came into force in November, companies with more than 45 million monthly active users and a market capitalisation of 75 billion euros ($82 billion) are considered gatekeepers providing a core platform service.
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The firms are Alphabet GOOGL.O, Amazon AMZN.O, Apple AAPL.O, Meta META.O, Microsoft MSFT.O and TikTok owner ByteDance. By Supantha Mukherjee STOCKHOLM, Sept 6 (Reuters) - The EU Commission on Wednesday designated 22 services of six major tech companies as "gatekeepers" of online services providing messaging to video sharing in its latest crackdown on Big Tech. The Commission has also opened four market investigations to further assess Microsoft's and Apple's submissions that some of their core platforms such as Bing, Edge and Microsoft Advertising, and Apple's iMessage services do not qualify as gateways.
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2023-09-06 00:00:00 UTC
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1 "Magnificent Seven" Stock That's a Screaming Buy in September and 1 to Avoid
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https://www.nasdaq.com/articles/1-magnificent-seven-stock-thats-a-screaming-buy-in-september-and-1-to-avoid
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Wall Street professionals and everyday investors are constantly on the lookout for companies, or groups of companies, that consistently outperform the broader market. For much of the past decade, this preeminent group of outperformers was the "FAANG stocks."
But with innovation comes new companies ready to carry the torch. In 2023, the upward momentum on Wall Street has been all about the "magnificent seven."
The magnificent seven stocks are (in order from largest market cap to smallest):
Apple (NASDAQ: AAPL)
Microsoft (NASDAQ: MSFT)
Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
Amazon (NASDAQ: AMZN)
Nvidia (NASDAQ: NVDA)
Meta Platforms (NASDAQ: META)
Tesla (NASDAQ: TSLA)
Image source: Getty Images.
These seven companies have run circles around the benchmark S&P 500 and, more importantly, offer a laundry list of competitive advantages. In the same order as listed above:
Apple is the United States' leading smartphone provider, and the roughly $600 billion in shares the company has repurchased since the start of 2013 is unrivaled by any other public company.
Microsoft is perfectly blending the old with the new. Its Windows operating system still dominates desktops, while Azure has become the world's No. 2 cloud infrastructure service provider.
Alphabet's internet search engine Google is a practical monopoly, with 92% of global internet search share, as of July 2023.
Amazon accounts for about 40% of all U.S. online retail sales, and cloud infrastructure service segment Amazon Web Services is No. 1 in the world in market share.
Nvidia is riding the artificial intelligence (AI) wave and is expected to garner a 90% share of the graphics processing units deployed in AI-accelerated data centers.
Meta Platforms' social media assets attracted more than half of the world's adult population to its family of apps each month during the second quarter.
Tesla is the only pure-play electric-vehicle (EV) manufacturer that's recurrently profitable, and it's the clear-cut leader in market share in North America.
Nevertheless, the magnificent seven aren't cut from the same cloth. Whereas one magnificent seven stock stands out as a plain-as-day bargain in September, another should have investors slamming on the brakes.
The magnificent seven stock that's a screaming buy in September: Meta Platforms
Among Wall Street's seven outperformers in 2023, it's social media company Meta Platforms that stands head and shoulders above its peers as the best value in September.
As always, even the best stocks have headwinds that can send them lower. For Meta, it's the health of the U.S. economy and its aggressive spending on augmented/virtual reality and the metaverse via Reality Labs.
In terms of the former, Meta Platforms generated more than 98% of its $60.6 billion in revenue through the first six months of 2023 from advertising. Ad spending tends to be highly cyclical. With a number of economic indicators and predictive tools suggesting the U.S. economy could shift into reverse in the coming quarters, this would bode poorly, at least in the short run, for Meta's advertising operations.
Meanwhile, CEO Mark Zuckerberg's aggressive investments in the metaverse are really adding up in the loss column. Reality Labs' six-month loss ballooned to $7.73 billion in 2023, up from $5.77 billion in the prior-year period. If U.S. economic growth slows, investors may be less tolerant of Zuckerberg's willingness to spend.
While these are both tangible obstacles for Meta, neither are particularly worrisome. For instance, even though advertising is cyclical, the U.S. economy spends a disproportionate amount of time expanding. More often than not, Meta's social media platforms are going to have substantial ad-pricing power in their corner.
As I pointed out earlier, it also doesn't hurt that Facebook, Instagram, WhatsApp, and Facebook Messenger are, collectively, attracting more than half of the world's adults on a monthly basis. Meta's family of apps logged 3.88 billion monthly active users in the second quarter, making the company the clear go-to for advertisers.
Additionally, Meta Platforms' cash on hand and cash flow from operations can support aggressive investments in augmented/virtual reality and the metaverse. The company closed out June with more than $53 billion in cash, cash equivalents, and marketable securities, and generated $31.3 billion in net cash from operating activities through the first six months of 2023. Put simply, Meta has the luxury of taking chances few other social media platforms can. If Zuckerberg's vision for the future is correct, his company will be one of the primary on-ramps to the metaverse.
Best of all, Meta Platforms is an amazing value. Despite tripling from its 2022 bear market lows, Meta shares can be purchased right now for around 10X Wall Street's cash flow estimate for 2024. That's well below the 16X multiple to cash flow Meta has averaged at years' end over the past five years.
A Tesla Model S charging. Image source: Tesla.
The magnificent seven stock that's worth avoiding in September: Tesla
However, not every magnificent seven stock is set to continue shining. Among the seven that have outperformed in 2023, the one to avoid in September is none other than EV manufacturer Tesla.
I certainly won't sit here and pretend that Tesla hasn't made history or proved naysayers wrong at nearly every turn. It's the first automaker to successfully build itself from the ground up to mass production in over a half-century.
As noted, it's also the only pure-play EV maker that's profitable on a recurring basis, according to generally accepted accounting principles (GAAP). This year could mark its fourth consecutive year of GAAP profits. Tesla has consistently utilized its first-mover advantages in the EV space to grab share in North America and internationally.
Furthermore, Tesla has ancillary operations that may help with the heavy lifting. Its supercharger network has become a favorite among automakers, and the company's energy storage solutions appear to offer long-term promise.
But that's where the praise for Tesla should end. While it's burned rubber up until now, all indications are that its shares are headed for a breakdown.
Perhaps the most glaring flaw with Tesla is the price war the company kicked off earlier this year. The company's production line has faced at least a half-dozen price cuts. In response to an investor question during the company's first-quarter conference call, CEO Elon Musk summarized that Tesla's pricing strategy is based on demand for its EVs. If the company continues to slash prices, it's likely because inventory levels are rising and/or demand isn't as robust as expected. Since the end of the third quarter, Tesla's operating margin has plummeted from 17.2% to 9.6%.
This probably goes without saying, but competition is picking up in the EV space and Tesla is almost certain to struggle to hold onto its share. BYD has been running circles around Tesla in China, and North American stalwarts like General Motors and Ford Motor Company have the branding power and history that Tesla lacks.
Elon Musk himself is another reason for investors to be leery of Tesla. Though Musk is synonymous with the company's innovation and success, he also seems to be a magnet for securities regulators and is constantly distracted by a multitude of side projects (SpaceX, Boring Company, and X, the platform formerly known as Twitter).
Worse yet, Musk has a growing list of innovations and promises that haven't come to fruition. We're effectively in the 10th year of his claim that full autonomy is "one year away." These promises and innovations are baked into Tesla's valuation, and could very easily be backed out, too.
Finally, Tesla hasn't demonstrated that it's anything more than an auto stock. Its supercharger network and energy storage operations are generally low margin, and its solar segment has been a money-loser since day one. Auto companies are highly cyclical and trade at single-digit price-to-earnings (P/E) ratios for a reason. Tesla is trading at a P/E of 71 times forecast earnings in 2023. Something has to give, and my best guess is it's Tesla's bloated valuation.
10 stocks we like better than Meta Platforms
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 28, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon.com, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, BYD, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The magnificent seven stocks are (in order from largest market cap to smallest): Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Meta Platforms (NASDAQ: META) Tesla (NASDAQ: TSLA) Image source: Getty Images. Nvidia is riding the artificial intelligence (AI) wave and is expected to garner a 90% share of the graphics processing units deployed in AI-accelerated data centers. With a number of economic indicators and predictive tools suggesting the U.S. economy could shift into reverse in the coming quarters, this would bode poorly, at least in the short run, for Meta's advertising operations.
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The magnificent seven stocks are (in order from largest market cap to smallest): Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Meta Platforms (NASDAQ: META) Tesla (NASDAQ: TSLA) Image source: Getty Images. The magnificent seven stock that's a screaming buy in September: Meta Platforms Among Wall Street's seven outperformers in 2023, it's social media company Meta Platforms that stands head and shoulders above its peers as the best value in September. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, BYD, Meta Platforms, Microsoft, Nvidia, and Tesla.
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The magnificent seven stocks are (in order from largest market cap to smallest): Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Meta Platforms (NASDAQ: META) Tesla (NASDAQ: TSLA) Image source: Getty Images. The magnificent seven stock that's a screaming buy in September: Meta Platforms Among Wall Street's seven outperformers in 2023, it's social media company Meta Platforms that stands head and shoulders above its peers as the best value in September. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, BYD, Meta Platforms, Microsoft, Nvidia, and Tesla.
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The magnificent seven stocks are (in order from largest market cap to smallest): Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Meta Platforms (NASDAQ: META) Tesla (NASDAQ: TSLA) Image source: Getty Images. 1 in the world in market share. The magnificent seven stock that's a screaming buy in September: Meta Platforms Among Wall Street's seven outperformers in 2023, it's social media company Meta Platforms that stands head and shoulders above its peers as the best value in September.
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13977.0
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2023-09-06 00:00:00 UTC
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China bans govt officials from using iPhone for work -WSJ
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https://www.nasdaq.com/articles/china-bans-govt-officials-from-using-iphone-for-work-wsj
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Sept 6 (Reuters) - China has ordered officials at central government agencies not to use Apple's AAPL.O iPhones and other foreign-branded devices for work or bring them into the office, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
(Reporting by Baranjot Kaur in Bengaluru; Editing by Savio D'Souza)
((Baranjot.Kaur@thomsonreuters.com; +91 86990 46242;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sept 6 (Reuters) - China has ordered officials at central government agencies not to use Apple's AAPL.O iPhones and other foreign-branded devices for work or bring them into the office, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. (Reporting by Baranjot Kaur in Bengaluru; Editing by Savio D'Souza) ((Baranjot.Kaur@thomsonreuters.com; +91 86990 46242;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sept 6 (Reuters) - China has ordered officials at central government agencies not to use Apple's AAPL.O iPhones and other foreign-branded devices for work or bring them into the office, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. (Reporting by Baranjot Kaur in Bengaluru; Editing by Savio D'Souza) ((Baranjot.Kaur@thomsonreuters.com; +91 86990 46242;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sept 6 (Reuters) - China has ordered officials at central government agencies not to use Apple's AAPL.O iPhones and other foreign-branded devices for work or bring them into the office, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. (Reporting by Baranjot Kaur in Bengaluru; Editing by Savio D'Souza) ((Baranjot.Kaur@thomsonreuters.com; +91 86990 46242;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sept 6 (Reuters) - China has ordered officials at central government agencies not to use Apple's AAPL.O iPhones and other foreign-branded devices for work or bring them into the office, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. (Reporting by Baranjot Kaur in Bengaluru; Editing by Savio D'Souza) ((Baranjot.Kaur@thomsonreuters.com; +91 86990 46242;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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13978.0
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2023-09-06 00:00:00 UTC
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TSMC to decide this week whether to invest in Arm IPO
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https://www.nasdaq.com/articles/tsmc-to-decide-this-week-whether-to-invest-in-arm-ipo
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By Ben Blanchard
TAIPEI, Sept 6 (Reuters) - TSMC 2330.TW, the world's largest contract chipmaker, will decide this week whether to invest in chip designer Arm Holdings' blockbuster initial public offering (IPO), Chairman Mark Liu said on Wednesday.
Speaking on the sidelines of the SEMICON Taiwan summit, Liu said his company was still evaluating the matter and, when pressed on when a decision may come, he added "this week".
"Arm is an important element of our ecosystem, our technology and our customers' ecosystem. We want it to be successful, we want it to be healthy. That's the bottom line," Liu said.
On Tuesday, SoftBank Group's 9984.T Arm Holdings launched the roadshow for its IPO as the chip designer tries to convince investors it is worth as much as $52 billion in this year's biggest share sale.
Arm has already signed up many of its major clients as cornerstone investors in its IPO, including Apple AAPL.O, Nvidia NVDA.O, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS.
Speaking about Taiwan Semiconductor Manufacturing Co Ltd's (TSMC) plant in the U.S. state of Arizona, where it is investing $40 billion in a massive project, Liu said he had no concern over its ability to be successful.
"I just came from Arizona last month. Any project of that new fertile ground will have some learning curve. In the past five months the improvement has been tremendous. I’m sure it will be a very successful project," he said.
In July, TSMC said production due to start next year at its first chip fabrication facility, or fab, in Arizona would be delayed until 2025 due a shortage of specialist workers.
(Reporting by Ben Blanchard; Editing by Anne Marie Roantree and Stephen Coates)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Arm has already signed up many of its major clients as cornerstone investors in its IPO, including Apple AAPL.O, Nvidia NVDA.O, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS. By Ben Blanchard TAIPEI, Sept 6 (Reuters) - TSMC 2330.TW, the world's largest contract chipmaker, will decide this week whether to invest in chip designer Arm Holdings' blockbuster initial public offering (IPO), Chairman Mark Liu said on Wednesday. On Tuesday, SoftBank Group's 9984.T Arm Holdings launched the roadshow for its IPO as the chip designer tries to convince investors it is worth as much as $52 billion in this year's biggest share sale.
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Arm has already signed up many of its major clients as cornerstone investors in its IPO, including Apple AAPL.O, Nvidia NVDA.O, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS. By Ben Blanchard TAIPEI, Sept 6 (Reuters) - TSMC 2330.TW, the world's largest contract chipmaker, will decide this week whether to invest in chip designer Arm Holdings' blockbuster initial public offering (IPO), Chairman Mark Liu said on Wednesday. On Tuesday, SoftBank Group's 9984.T Arm Holdings launched the roadshow for its IPO as the chip designer tries to convince investors it is worth as much as $52 billion in this year's biggest share sale.
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Arm has already signed up many of its major clients as cornerstone investors in its IPO, including Apple AAPL.O, Nvidia NVDA.O, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS. By Ben Blanchard TAIPEI, Sept 6 (Reuters) - TSMC 2330.TW, the world's largest contract chipmaker, will decide this week whether to invest in chip designer Arm Holdings' blockbuster initial public offering (IPO), Chairman Mark Liu said on Wednesday. On Tuesday, SoftBank Group's 9984.T Arm Holdings launched the roadshow for its IPO as the chip designer tries to convince investors it is worth as much as $52 billion in this year's biggest share sale.
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Arm has already signed up many of its major clients as cornerstone investors in its IPO, including Apple AAPL.O, Nvidia NVDA.O, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS. Speaking about Taiwan Semiconductor Manufacturing Co Ltd's (TSMC) plant in the U.S. state of Arizona, where it is investing $40 billion in a massive project, Liu said he had no concern over its ability to be successful. "I just came from Arizona last month.
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2023-09-06 00:00:00 UTC
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Got $100 Per Week? How the Stock Market Could Turn It Into $790,000
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https://www.nasdaq.com/articles/got-%24100-per-week-how-the-stock-market-could-turn-it-into-%24790000
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The stock market can be daunting at times, especially during periods of volatility. But investing remains one of the simplest and most effective ways to build wealth over time, and it's possible to earn hundreds of thousands of dollars or more.
However, you'll need the right strategy to pull off that achievement. Fortunately, with just one low-maintenance investment, it's possible to turn $100 per week into $790,000 while barely lifting a finger. Here's how.
Generating wealth with next to no effort
There are countless investments to choose from, and where you buy will depend on your personal preferences and risk tolerance. But if you're looking for a low-effort investment to put your savings on auto-pilot, the S&P 500 ETF may be a smart choice.
The S&P 500 ETF -- such as the Vanguard S&P 500 ETF (NYSEMKT: VOO) tracks the S&P 500 index itself. This means it includes the same stocks as the index or roughly 500 stocks from the largest and strongest companies in the U.S.
In other words, when you invest in just one ETF, you'll instantly own a stake in all 500 of these companies -- ranging from tech behemoths like Amazon and Apple to household names like Procter & Gamble and Coca-Cola.
This level of diversification can significantly lower your risk because you'll own a wide variety of stocks across multiple industries. And because the companies within the S&P 500 are some of the strongest in the world, this investment is extremely likely to recover from market downturns and go on to see consistent long-term growth.
Building a $790,000 portfolio
Perhaps the biggest advantage of the S&P 500 ETF is that it's a low-maintenance investment. You never need to worry about choosing stocks, deciding when to buy or sell, or keeping up with industry news. Simply invest whatever you can afford, then wait for your money to grow.
Historically, the S&P 500 itself has earned an average annual return of around 10% per year. While it's highly unlikely you'll earn 10% returns each and every year, the annual highs and lows should average out to around 10% per year over several decades.
Assuming your investment is earning a 10% average annual return, here's approximately how much you could accumulate over time by investing just $100 per week:
NUMBER OF YEARS TOTAL SAVINGS
20 $275,000
25 $472,000
30 $790,000
35 $1,301,000
40 $2,124,000
Data source: Author's calculations via Investor.gov
To build a portfolio worth $790,000, you'd need to invest consistently for around 30 years. But if you have even a few more years to invest, you could earn exponentially more. Time is your most valuable resource, so the sooner you get started investing, the easier it will be to make a lot of money.
One drawback to consider before you buy
The S&P 500 ETF is a fantastic choice for those looking for a low-cost investment that requires very little upkeep. However, it won't be the right fit for every portfolio.
If you're looking to earn above-average returns, for example, the S&P 500 ETF won't get you there. Because this investment is designed to follow the market, it's impossible for it to beat the market.
For many people, lower returns are a worthwhile trade-off for the ease and simplicity of this investment. But if you're aiming to truly maximize your earnings in the stock market, you may be better off investing in individual stocks. While they do require more effort than this ETF, you could potentially earn far higher returns.
Generating wealth in the stock market doesn't have to be complicated, but you will need the right investments. If you're looking for a "set it and forget it" type of investment that can help you make money while barely lifting a finger, the S&P 500 ETF may be a great fit for you.
10 stocks we like better than Vanguard S&P 500 ETF
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard S&P 500 ETF wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 28, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Katie Brockman has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon.com, Apple, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Generating wealth with next to no effort There are countless investments to choose from, and where you buy will depend on your personal preferences and risk tolerance. In other words, when you invest in just one ETF, you'll instantly own a stake in all 500 of these companies -- ranging from tech behemoths like Amazon and Apple to household names like Procter & Gamble and Coca-Cola. If you're looking for a "set it and forget it" type of investment that can help you make money while barely lifting a finger, the S&P 500 ETF may be a great fit for you.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of August 28, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Amazon.com, Apple, and Vanguard S&P 500 ETF.
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Assuming your investment is earning a 10% average annual return, here's approximately how much you could accumulate over time by investing just $100 per week: But if you're aiming to truly maximize your earnings in the stock market, you may be better off investing in individual stocks. See the 10 stocks *Stock Advisor returns as of August 28, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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Generating wealth in the stock market doesn't have to be complicated, but you will need the right investments. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Amazon.com, Apple, and Vanguard S&P 500 ETF.
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13980.0
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2023-09-05 00:00:00 UTC
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Apple execs lose bid to block testimony at Google antitrust trial
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https://www.nasdaq.com/articles/apple-execs-lose-bid-to-block-testimony-at-google-antitrust-trial
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By Mike Scarcella
Sept 5 (Reuters) - Three senior Apple AAPL.O executives have lost their bid to stop the U.S. Justice Department from calling them as witnesses in the government's upcoming trial accusing Alphabet's Google GOOGL.O of abusing its search power.
The Apple executives — Eduardo Cue, John Giannandrea and Adrian Perica — had argued in Washington, D.C., federal court that compelling them to testify at trial was "duplicative" and "unduly burdensome," since they had already answered questions at an earlier stage in the case.
U.S. District Judge Amit Mehta in a brief order on Monday denied Apple's effort to quash the subpoenas.
Companies often try to bar or minimize subpoenas seeking testimony or information from top executives.
Apple, which is not a defendant, said it has been the subject of "overbroad" demands in the case and that it already has disclosed more than 125,000 documents from senior executives.
Cue oversees Apple Music, Apple TV and other services. Giannandrea is the executive in charge of machine learning and AI strategy, and Perica oversees Apple's corporate development wing, including leading the company's mergers and acquisitions efforts.
Representatives from Apple and Google did not immediately respond to requests for comment. The Justice Department declined to comment.
Google and its lawyers have denied any wrongdoing in the case, one of two Justice Department antitrust lawsuits against Google.
A lawyer for Google, John Schmidtlein, told U.S. District Judge Amit Mehta in D.C. at a hearing this year that "offering a superior product, winning business on the merits is never unlawful."
The Justice Department said its case centers on Google's sharing of billions of dollars in annual advertising revenue with business partners such as Apple in exchange for Google's search being default on other companies' devices.
The government has called Apple "chief among Google's distribution partners" and said Google's relationship with Apple through an information-services agreement "will be a central issue at trial."
Apple's attorneys warned recently that trial testimony would force the lawyers and Mehta to "navigate the risks of inadvertent disclosure of its most competitively sensitive information."
In a filing, Apple said it wanted to shield information concerning business negotiations, confidential contract terms and "forward-looking product opportunities."
Attorneys for Apple argued that the company had "provided all the discovery (and more) that the parties could need for trial."
The bench trial is set to begin on Sept. 12 in Mehta's court.
The case is United States v. Google, U.S. District Court for the District of Columbia, No. 1:20-cv-03010-APM.
For U.S.: Kenneth Dintzer of the U.S. Justice Department
For Google: John Schmidtlein of Williams & Connolly
For Apple: Steven Sunshine and Karen Lent of Skadden, Arps, Slate, Meagher & Flom
Read more:
Apple executives fight subpoenas in shareholders' lawsuit against Qualcomm
Apple chided by appeals judge as it heads to US Supreme Court in antitrust case
Apple's Gibson Dunn team contests subpoena in antitrust case
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Scarcella Sept 5 (Reuters) - Three senior Apple AAPL.O executives have lost their bid to stop the U.S. Justice Department from calling them as witnesses in the government's upcoming trial accusing Alphabet's Google GOOGL.O of abusing its search power. The Apple executives — Eduardo Cue, John Giannandrea and Adrian Perica — had argued in Washington, D.C., federal court that compelling them to testify at trial was "duplicative" and "unduly burdensome," since they had already answered questions at an earlier stage in the case. Giannandrea is the executive in charge of machine learning and AI strategy, and Perica oversees Apple's corporate development wing, including leading the company's mergers and acquisitions efforts.
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By Mike Scarcella Sept 5 (Reuters) - Three senior Apple AAPL.O executives have lost their bid to stop the U.S. Justice Department from calling them as witnesses in the government's upcoming trial accusing Alphabet's Google GOOGL.O of abusing its search power. The Apple executives — Eduardo Cue, John Giannandrea and Adrian Perica — had argued in Washington, D.C., federal court that compelling them to testify at trial was "duplicative" and "unduly burdensome," since they had already answered questions at an earlier stage in the case. A lawyer for Google, John Schmidtlein, told U.S. District Judge Amit Mehta in D.C. at a hearing this year that "offering a superior product, winning business on the merits is never unlawful."
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By Mike Scarcella Sept 5 (Reuters) - Three senior Apple AAPL.O executives have lost their bid to stop the U.S. Justice Department from calling them as witnesses in the government's upcoming trial accusing Alphabet's Google GOOGL.O of abusing its search power. The Justice Department said its case centers on Google's sharing of billions of dollars in annual advertising revenue with business partners such as Apple in exchange for Google's search being default on other companies' devices. The government has called Apple "chief among Google's distribution partners" and said Google's relationship with Apple through an information-services agreement "will be a central issue at trial."
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By Mike Scarcella Sept 5 (Reuters) - Three senior Apple AAPL.O executives have lost their bid to stop the U.S. Justice Department from calling them as witnesses in the government's upcoming trial accusing Alphabet's Google GOOGL.O of abusing its search power. Google and its lawyers have denied any wrongdoing in the case, one of two Justice Department antitrust lawsuits against Google. The government has called Apple "chief among Google's distribution partners" and said Google's relationship with Apple through an information-services agreement "will be a central issue at trial."
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Google vs. Apple: Which Smartphone Stock is a Better Buy?
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AAPL
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https://www.nasdaq.com/articles/google-vs.-apple%3A-which-smartphone-stock-is-a-better-buy
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The next month should be a critical one for technology giants Alphabet (GOOGL) and Apple (AAPL), as both companies are expected to unveil brand new hardware lineups. For Apple, the iPhone 15 will be revealed at its Sept. 12 “Wonderlust” event, while Google just confirmed Oct. 4 as the date for its Pixel 8 launch.
Year to date, Google’s parent company Alphabet is up an impressive 53%, and Apple shares are over 46% higher. Both are outperforming a gain of 34% for the broader Nasdaq Composite ($NASX) - but while GOOGL hit a new 52-week high in August, AAPL is recovering from last month's post-earnings sell-off.
www.barchart.com
Though Pixel sales make up only a small percentage of Alphabet’s revenue, it’s in one of the company's fastest-growing segments, and many analysts are paying close attention to the device's success. For Apple, although the company is trying to diversify away from the iPhone, the product still makes up almost 50% of revenue, and will have a large influence on its stock price.
Let's take a closer look to decide which is the better smartphone stock right now.
Sales
In early August, one of the biggest reasons that Apple stock dropped after earnings was disappointing iPhone sales, as overall revenue fell for the third consecutive quarter. While Apple typically reports softer iPhone revenue in the quarter immediately preceding its regularly scheduled September device launch, the impact of higher inflation also weighed on results this year - and the smartphone industry at large is declining, as well.
Despite these broader industry headwinds, Google Pixel sales increased sharply during the first quarter of this year. Global sales of the device were up an impressive 67% YoY, powered in part by an enthusiastic adoption in the Japanese market. This is due largely to Alphabet’s ability to maintain quality design and increased marketing for the Pixel, while still offering a mid-range price point.
Product
Though Pixel is a new entrant to the smartphone market, it offers a high-quality product at an attractive price. That's one reason why sales exploded so rapidly - but in the smartphone industry, it's not easy to maintain that kind of momentum over the long haul. That's particularly true when you're a software and advertising company at heart, like Alphabet, competing with massive hardware giants like Samsung and Apple for market share.
Apple, meanwhile, has some of the most loyal customers in the industry. Consumers are quite happily locked into Apple’s “ecosystem,” with services and other software compelling customers to stay with iPhones over time. As a result, Apple has a high customer retention rate of 90%, and recently surpassed more than 1 billion paid subscriptions.
Which company will win?
Apple’s decline in sales seems likely to be both temporary and seasonal in nature, and - while the well-established iPhone can't grow market share as fast as the upstart Pixel - its fiercely loyal customer base means Apple's flagship device isn't going anywhere anytime soon. And while a potential recession next year may further curb spending, Apple’s focus on higher-income shoppers could help to keep its sales somewhat insulated from economic turbulence.
The Pixel is a good product, and with more focus from Alphabet, could further expand its market share. However, in the fiercely competitive smartphone market, the harsh truth right now is that Pixel’s primary advantage against Apple is its price point - and from an operational perspective, that leads to tighter margins. Plus, if the economy turns south, the value-minded demographic the Google Pixel is targeting will likely delay spending on higher-ticket items like smartphones as long as possible.
While the Google Pixel has more potential to grow its customer base, I expect Apple’s iPhone sales to continue chugging along without any major downsides. In this challenging industry, that gives Apple the advantage in this smartphone stock face-off.
On the date of publication, Michael Que did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The next month should be a critical one for technology giants Alphabet (GOOGL) and Apple (AAPL), as both companies are expected to unveil brand new hardware lineups. Both are outperforming a gain of 34% for the broader Nasdaq Composite ($NASX) - but while GOOGL hit a new 52-week high in August, AAPL is recovering from last month's post-earnings sell-off. www.barchart.com Though Pixel sales make up only a small percentage of Alphabet’s revenue, it’s in one of the company's fastest-growing segments, and many analysts are paying close attention to the device's success.
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The next month should be a critical one for technology giants Alphabet (GOOGL) and Apple (AAPL), as both companies are expected to unveil brand new hardware lineups. Both are outperforming a gain of 34% for the broader Nasdaq Composite ($NASX) - but while GOOGL hit a new 52-week high in August, AAPL is recovering from last month's post-earnings sell-off. Despite these broader industry headwinds, Google Pixel sales increased sharply during the first quarter of this year.
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The next month should be a critical one for technology giants Alphabet (GOOGL) and Apple (AAPL), as both companies are expected to unveil brand new hardware lineups. Both are outperforming a gain of 34% for the broader Nasdaq Composite ($NASX) - but while GOOGL hit a new 52-week high in August, AAPL is recovering from last month's post-earnings sell-off. While Apple typically reports softer iPhone revenue in the quarter immediately preceding its regularly scheduled September device launch, the impact of higher inflation also weighed on results this year - and the smartphone industry at large is declining, as well.
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The next month should be a critical one for technology giants Alphabet (GOOGL) and Apple (AAPL), as both companies are expected to unveil brand new hardware lineups. Both are outperforming a gain of 34% for the broader Nasdaq Composite ($NASX) - but while GOOGL hit a new 52-week high in August, AAPL is recovering from last month's post-earnings sell-off. Year to date, Google’s parent company Alphabet is up an impressive 53%, and Apple shares are over 46% higher.
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2023-09-05 00:00:00 UTC
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Microsoft (MSFT) Seeks to Dodge EU's Gatekeepers Tag for Bing
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AAPL
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https://www.nasdaq.com/articles/microsoft-msft-seeks-to-dodge-eus-gatekeepers-tag-for-bing
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Microsoft MSFT is reportedly making efforts to keep the Bing search engine off the European Union's (EU) gatekeeper list, which would subject it to new obligations and regulations under the Digital Markets Act (DMA).
The DMA is an attempt by the EU to assert greater control over the activities of major tech companies operating in the European market.
The DMA specifies certain criteria to identify gatekeeper companies. These criteria include having an annual turnover of more than €7.5 billion, a market capitalization above €75 billion and active monthly users in the EU of at least 45 million.
The DMA requires gatekeepers to share data, link to competitors and make their services interoperable with rival apps. This is intended to open up markets and enable competition from European start-ups.
However, there are concerns that some of these requirements might inadvertently benefit Alphabet GOOGL-owned Google.
Microsoft’s search engine Bing is far less popular than Google Search and imposing the same obligations as on Google Search would put it at a disadvantage. Bing commands about 3% of the share of global search, according to StatCounter. Google Search, in contrast, commands about 91% of the global search engine market share.
Shares of this Zacks Rank #3 (Hold) company have gained 37% year to date compared with the Zacks Computer and Technology sector’s rise of 40.4% in the same period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Microsoft Corporation Price and Consensus
Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote
Other Tech Giants Defying EU’s New Law
The EU is likely to unveil its list of gatekeepers on Sep 6, subjecting tech giants like Apple AAPL, Amazon.com, Google and Meta Platforms Inc. META to strict regulations aimed at promoting competition and interoperability.
The DMA is expected to face legal challenges, with tech companies potentially challenging the European Commission's decisions in the EU courts.
Apple has joined Microsoft in defending the inclusion of its iMessage service as a gatekeeper. The tech giant may argue that iMessage falls short of DMA’s user threshold of 45 million monthly users, exempting it from obligations like facilitating rival apps, including Meta’s WhatsApp.
Apple is actively working on methods to enable third-party app stores and sideloading on its iOS platform to comply with anticipated rules.
This dispute is part of a broader trend of increased regulatory scrutiny of tech giants by European authorities. Other pieces of legislation, such as the Digital Services Act, are also designed to regulate the Internet and digital services.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Microsoft Corporation Price and Consensus Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote Other Tech Giants Defying EU’s New Law The EU is likely to unveil its list of gatekeepers on Sep 6, subjecting tech giants like Apple AAPL, Amazon.com, Google and Meta Platforms Inc. META to strict regulations aimed at promoting competition and interoperability. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Microsoft MSFT is reportedly making efforts to keep the Bing search engine off the European Union's (EU) gatekeeper list, which would subject it to new obligations and regulations under the Digital Markets Act (DMA).
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Microsoft Corporation Price and Consensus Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote Other Tech Giants Defying EU’s New Law The EU is likely to unveil its list of gatekeepers on Sep 6, subjecting tech giants like Apple AAPL, Amazon.com, Google and Meta Platforms Inc. META to strict regulations aimed at promoting competition and interoperability. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Microsoft MSFT is reportedly making efforts to keep the Bing search engine off the European Union's (EU) gatekeeper list, which would subject it to new obligations and regulations under the Digital Markets Act (DMA).
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Microsoft Corporation Price and Consensus Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote Other Tech Giants Defying EU’s New Law The EU is likely to unveil its list of gatekeepers on Sep 6, subjecting tech giants like Apple AAPL, Amazon.com, Google and Meta Platforms Inc. META to strict regulations aimed at promoting competition and interoperability. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Microsoft MSFT is reportedly making efforts to keep the Bing search engine off the European Union's (EU) gatekeeper list, which would subject it to new obligations and regulations under the Digital Markets Act (DMA).
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Microsoft Corporation Price and Consensus Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote Other Tech Giants Defying EU’s New Law The EU is likely to unveil its list of gatekeepers on Sep 6, subjecting tech giants like Apple AAPL, Amazon.com, Google and Meta Platforms Inc. META to strict regulations aimed at promoting competition and interoperability. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Microsoft MSFT is reportedly making efforts to keep the Bing search engine off the European Union's (EU) gatekeeper list, which would subject it to new obligations and regulations under the Digital Markets Act (DMA).
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2023-09-05 00:00:00 UTC
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The 3 Best Long-Term Stocks to Buy Now: September 2023
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AAPL
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https://www.nasdaq.com/articles/the-3-best-long-term-stocks-to-buy-now%3A-september-2023
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The United States economy added 187,000 new jobs last month, and this is accompanied by an unexpected rise in the unemployment rate to 3.8% . This in turn raises the odds for the soft landing that the Federal Reserve wanted. In addition, labor force participation increased and earnings growth slowed. This shows a positive outlook for the Federal Reserve goals and the health of the economy as a whole. All of this has lead us to our list of the best long-term stocks to buy right now.
President Joe Biden spoke in Philadelphia on Labor Day to update the general public on his “bidenomics: economic plan for American workers. To a surprise to many analysts, President Biden remarked that inflation is “near its lowest point in over two years.” All of this positive news is beneficial to the overall stock market and to investors in particular. The possibility of a recession and any negative effects is getting more distant as news comes in, making it a worthwhile time for investors to buy in on the three best long-term stocks for September.
Apple Incorporated (AAPL)
Source: Moab Republic / Shutterstock
Apple Incorporated (NASDAQ:AAPL) is a leading technology company, known for its innovative hardware and software interfaces. Hovering around $190.00, AAPL stock is up 51.48% year-to-date. Furthermore, Yahoo! Finance reports analysts have a mean one-year target price of $200.68, with the range being from $149.00 to $240.00.
Apple has continued its trend of consistent growth; for Q3 2023. It posted a diluted EPS of $1.26, which grew 5% YoY and beat projections by $0.07. Its revenue of $81.08 billion, though missing estimates by $-3.35 million, presents no concern in the long term. Its total comprehensive income of $19,826 million grew 19% YoY. Moreover, its total liabilities of $274,764 million saw a 9% YoY decrease. This is paving the way for future growth.
On September 12, Apple is planning on hosting its annual press event where it is rumored a plethora of new products will be unveiled. Among these unreleased products stands the highly-anticipated iPhone 15, a product that has the potential to be a massive growth catalyst for Apple. Historically, the quarter following the release of new iPhones always proves to be lucrative with its respective revenue exceeding $100,000 million in the past few years. Given this consistency, a similar effect can be expected in the upcoming week.
Apple has positioned itself in a market designed for future growth. The consumer electronics market is expected to grow $531 billion by 2033 with a CAGR of 5.2%. This trend, along with Apple’s reputable history of growth, makes it a great long-term pick that will boost your portfolio for years to come.
Snowflake (SNOW)
Source: Sundry Photography / Shutterstock
Snowflake (NYSE:SNOW) allows corporate users to analyze data using cloud-based hardware and software. SNOW stock is up 15.93% YTD. Yahoo! Finance reports 38 analysts with a mean 1-year price target of $198.97, spanning from $105.00 to $600.00, and a majority of these analysts have rated SNOW stock as a buy.
Snowflake reported excellent earnings. Revenue of $674.02 million increased 35.55% YoY. EPS of $0.22 beat expectations by 103.93%, and net income of -$226.87 million decreased by 1.82% YoY.
In particular, Snowflake recently acquired Neeva, a search company centered around leveraging generative AI. Neeva allows Snowflake to step into cutting-edge search technology. It does so by working with team members who created products such as Google’s search advertising and YouTube monetization. This bolsters growth for Snowflake on search in the Data Cloud using AI, and the company further expanded its partnership with Microsoft. The partnership will consist of focusing on new product integrations with Microsoft’s Azure OpenAI, significantly elevating field collaboration to benefit joint customers. Allowing Snowflake customers to easily and securely leverage Azure OpenAI and Microsoft Cognitive Services with Snowflake data is a strong and beneficial catalyst for long-term growth for this company. Snowflake has also partnered with NVIDIA. The pair will make it more convenient and efficient to build generative AI applications using the extensive amount of Snowflake data and the power of Nvidia GPUs.
The global cloud data warehouse market is projected to grow at a 22.3% CAGR, from $4.7 billion to $12.9 billion. This excellent industry growth, along with Snowflake catalysts that build a solid foundation by taking advantage of AI, has placed the company in an excellent position for long-term growth.
Royal Caribbean Group (RCL)
Source: Laszlo Halasi / Shutterstock.com
Royal Caribbean Group (NYSE:RCL), formerly known as Royal Caribbean Cruises, is a global cruise holding company. What sets Royal Caribbean across from competitors is that the company is the second-largest cruise line operator. This in turn has seen tremendous growth for RCL stock, with it being up 100.57% YTD.
Financials for Royal Caribbean have been strong. In its recent quarter of June, the revenue of $3.52 billion grew 61.29% YoY which beat analyst expectations by 3.19%, net income of $458.76 million increased by 187.96% YoY, and a strong diluted EPS of $1.70 grew 182.93% YoY. EPS in particular also beat analyst expectations by 14.85%, and a healthy net profit margin of 13.02% grew by 154.52%.
The global cruise ship market is valued at $8 billion in 2021 and is projected to grow at a 7.9% CAGR to $16.7 billion by 2031. Moreover, Yahoo! Finance reports 15 analysts having a mean 12-month price target of $120.73, with the range spanning from $83.00 to a high of $139.00.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.
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The post The 3 Best Long-Term Stocks to Buy Now: September 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Incorporated (AAPL) Source: Moab Republic / Shutterstock Apple Incorporated (NASDAQ:AAPL) is a leading technology company, known for its innovative hardware and software interfaces. Hovering around $190.00, AAPL stock is up 51.48% year-to-date. President Joe Biden spoke in Philadelphia on Labor Day to update the general public on his “bidenomics: economic plan for American workers.
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Apple Incorporated (AAPL) Source: Moab Republic / Shutterstock Apple Incorporated (NASDAQ:AAPL) is a leading technology company, known for its innovative hardware and software interfaces. Hovering around $190.00, AAPL stock is up 51.48% year-to-date. Royal Caribbean Group (RCL) Source: Laszlo Halasi / Shutterstock.com Royal Caribbean Group (NYSE:RCL), formerly known as Royal Caribbean Cruises, is a global cruise holding company.
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Apple Incorporated (AAPL) Source: Moab Republic / Shutterstock Apple Incorporated (NASDAQ:AAPL) is a leading technology company, known for its innovative hardware and software interfaces. Hovering around $190.00, AAPL stock is up 51.48% year-to-date. Allowing Snowflake customers to easily and securely leverage Azure OpenAI and Microsoft Cognitive Services with Snowflake data is a strong and beneficial catalyst for long-term growth for this company.
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Apple Incorporated (AAPL) Source: Moab Republic / Shutterstock Apple Incorporated (NASDAQ:AAPL) is a leading technology company, known for its innovative hardware and software interfaces. Hovering around $190.00, AAPL stock is up 51.48% year-to-date. Apple has positioned itself in a market designed for future growth.
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The 3 Best Metaverse Stocks to Buy Now: September 2023
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AAPL
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https://www.nasdaq.com/articles/the-3-best-metaverse-stocks-to-buy-now%3A-september-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It is true that the metaverse may seem something new for this time, even in its initial stages. But like artificial intelligence (AI) and cryptocurrencies, the metaverse is here to stay. In order to make the most of this growing space, we must understand and study it as users of its technology and as investors. I think of it like investing in the internet in the 2000s. With that in mind, here are my three recommendations for the best metaverse stocks to buy.
Unity (U)
Source: viewimage / Shutterstock.com
Unity Software (NYSE:U) is a leading real-time 3D (RT3D) content and experience creation company. They had a strong second quarter, beating expectations for revenue and adjusted EBITDA. Notably, their revenue reached $533 million, an impressive 80% year-over-year growth and an 11% year-over-year increase on a pro forma basis.
Despite a GAAP net loss of $193 million, they managed to achieve adjusted EBITDA of $99 million. This is a significant improvement of $136 million compared to the prior year and fully exceeded its adjusted EBITDA guidance of $50 million to $60 million. Although it was impacted by one-time restructuring payments, free cash flow for the quarter was $33 million.
All of those reasons earn Unity a spot on my list of the best metaverse stocks. Furthermore, my opinion is bolstered by the company’s commitment to reshape the digital entertainment landscape. They are doing so through their new Unity Wētā Tools division, which is focused on providing widely used and trusted solutions for artists to collaborate on creating both 2D and 3D content.
These advancements, if successful, will make high-end VFX production and premium content creation more accessible to creators. Additionally, it will empower these creators to create captivating digital worlds, bring hyper-realistic characters to life, and elevate cinematic production techniques.
Unity is also expanding their reach beyond entertainment. They have introduced Unity Industry, a collection of products and services optimized for diverse industries such as manufacturing, infrastructure, energy and retail. For example, Unity Industry enables these companies to turn their 3D data into valuable digital assets, impressively reducing time to market and optimizing resources.
From human-machine interfaces to product visualization, sales configurators, smart factories, digital twins and simulation, Unity Industry enables customers to seamlessly create and collaborate in real time, delivering immersive and interactive 3D experiences across diverse platforms. It’s a shoo-in for the top three best metaverse stocks worthy of consideration.
Roblox (RBLX)
Source: Miguel Lagoa / Shutterstock.com
Roblox (NYSE:RBLX) is a major player in the world of virtual experiences and online games. It’s not just about playing, but also about creating. Providing a digital universe where millions of users come together, it offers users a space where anyone can develop their own games, adventures and activities, ultimately encouraging creativity and social interaction.
Financially, they have experienced promising growth. In the second quarter of 2023, its figures were impressive with revenues reaching $680.8 million, up 15% year-on-year, and bookings totaling $780.7 million, a year-on-year increase of 22%. Despite these gains, there was a net loss of $282.8 million. Operationally, it had 65.5 million daily active users, up 25% from the previous year. This indicates a thriving and engaged user base that spends a total of 14 billion hours on the platform.
A key metric for Roblox is the average bookings per daily active user (ABPDAU), which stood at $11.92, although it showed a slight decline of 3% from the previous year. However, the monthly average of unique payers, at 13.5 million, was up 19% year-on-year, and they spent an average of $19.32 each, showing an increase of 3%. These figures highlight their ability to effectively monetize their user base.
They recently made a significant announcement during Cannes Lions, introducing the Roblox Partner Program. This program aims to empower brand innovation and create a global self-service advertising ecosystem within the platform. It focuses on engaging diverse stakeholders, from Roblox developers to agencies, brands and third-party marketers. The program emphasizes community engagement and offers transparent pricing for immersive ads.
Several renowned partners have already joined the program, including Century Games, Dentsu (OTCMKTS:DNTUY), Dubit, Playwire, Sawhorse, The Gang Group and Vayner3. Collectively, they bring their expertise in creating immersive 3D content and innovative advertising, making it easier for newcomers to access the platform. These partners have also committed to support brands joining this new space over the next 12 months.
The resulting combination of these factors win Roblox a spot in my list of the top three metaverse stocks.
Autodesk (ADSK)
Source: JHVEPhoto / Shutterstock.com
Known for their software solutions for architects, engineers, artists and designers, Autodesk (NASDAQ:ADSK) is well-positioned to play an important role in the fields on 3D design and content creation as the metaverse grows. Specifically, Autodesk provides 3D modeling, animation and rendering tools that are essential for developing virtual worlds, immersive experiences and digital content.
What sets them apart and makes them attractive as an investment in the metaverse is their participation in initiatives such as the Allice for OpenUSD (AOUSD). In collaboration with influential technology giants such as Pixar, Adobe (NASDAQ:ADBE), Apple (NASDAQ:AAPL) and NVIDIA (NASDAQ:NVDA), Autodesk contributes to the standardization and development of Pixar’s Universal Scene Description (USD) technology.
OpenUSD, powered by Pixar, is a powerful 3D scene description technology known for its ability to streamline content production and capture artistic expression collaboratively. By participating in AOUSD, Autodesk is at the forefront of creating the technical foundation for the metaverse.
This move is crucial to establish a common language in the 3D ecosystem, promoting interoperability between various tools and data sources. Standardization is vital in the metaverse since different platforms and creators need to communicate and share content seamlessly.
As for their financial results, in the second quarter of the current fiscal year, they reported impressive results. Total revenue increased 9% to $1.345 billion, demonstrating the company’s growth potential. Although the GAAP operating margin declined slightly, their non-GAAP operating margin remained stable at 36%, indicating efficient cost management. In addition, its earnings-per-share (EPS) showed strength with a GAAP EPS of $1.03 and a non-GAAP EPS of $1.91. Finally, the company also demonstrated strong cash flow from operating activities and free cash flow, with $135 million and $128 million, respectively.
With strong fundamentals and a formidable collaboration on the horizon, Autodesk rounds out my list of the best metaverse stocks today.
As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.
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It doesn’t matter if you have $500 or $5 million. Do this now.
The post The 3 Best Metaverse Stocks to Buy Now: September 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In collaboration with influential technology giants such as Pixar, Adobe (NASDAQ:ADBE), Apple (NASDAQ:AAPL) and NVIDIA (NASDAQ:NVDA), Autodesk contributes to the standardization and development of Pixar’s Universal Scene Description (USD) technology. Additionally, it will empower these creators to create captivating digital worlds, bring hyper-realistic characters to life, and elevate cinematic production techniques. From human-machine interfaces to product visualization, sales configurators, smart factories, digital twins and simulation, Unity Industry enables customers to seamlessly create and collaborate in real time, delivering immersive and interactive 3D experiences across diverse platforms.
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In collaboration with influential technology giants such as Pixar, Adobe (NASDAQ:ADBE), Apple (NASDAQ:AAPL) and NVIDIA (NASDAQ:NVDA), Autodesk contributes to the standardization and development of Pixar’s Universal Scene Description (USD) technology. In the second quarter of 2023, its figures were impressive with revenues reaching $680.8 million, up 15% year-on-year, and bookings totaling $780.7 million, a year-on-year increase of 22%. OpenUSD, powered by Pixar, is a powerful 3D scene description technology known for its ability to streamline content production and capture artistic expression collaboratively.
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In collaboration with influential technology giants such as Pixar, Adobe (NASDAQ:ADBE), Apple (NASDAQ:AAPL) and NVIDIA (NASDAQ:NVDA), Autodesk contributes to the standardization and development of Pixar’s Universal Scene Description (USD) technology. This is a significant improvement of $136 million compared to the prior year and fully exceeded its adjusted EBITDA guidance of $50 million to $60 million. In the second quarter of 2023, its figures were impressive with revenues reaching $680.8 million, up 15% year-on-year, and bookings totaling $780.7 million, a year-on-year increase of 22%.
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In collaboration with influential technology giants such as Pixar, Adobe (NASDAQ:ADBE), Apple (NASDAQ:AAPL) and NVIDIA (NASDAQ:NVDA), Autodesk contributes to the standardization and development of Pixar’s Universal Scene Description (USD) technology. Unity (U) Source: viewimage / Shutterstock.com Unity Software (NYSE:U) is a leading real-time 3D (RT3D) content and experience creation company. In the second quarter of 2023, its figures were impressive with revenues reaching $680.8 million, up 15% year-on-year, and bookings totaling $780.7 million, a year-on-year increase of 22%.
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13985.0
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2023-09-05 00:00:00 UTC
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ETFs to Buy as Soft Landing Odds Improve
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AAPL
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https://www.nasdaq.com/articles/etfs-to-buy-as-soft-landing-odds-improve
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nan
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nan
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The market is divided between views on the true health of the U.S. economy. Mostly, investors are becoming more certain that the economy will avoid a recession in 2023. However, some remain skeptical about whether the economy can avoid a recession next year.
Inflation levels have shown a consistent decline in recent months, but remain above the Fed's benchmark level. Coupled with the potential for future Fed rate hikes in 2023, these factors contribute to an atmosphere of uncertainty surrounding the state of the economy.
Difficult Economic Conditions
According to Forbes, the Fed's recent projections suggest that a recession in 2023 is unlikely. However, the extended rate hike approach adopted by the Fed might hinder economic growth. Even if the United States manages to evade a recession in 2023, the forceful monetary policy pursued by the Fed over the past 18 months could now be causing adverse effects on the economy.
Moreover, the banking crisis has led to tight credit conditions, and historically high interest rates are placing pressure on corporate profits and overall economic expansion.
What Lies Ahead?
In early August, according to Reuters, JP Morgan said that it is no longer expecting the U.S. economy to enter into a recession in 2023 and forecast that the economy will expand at a strong and steady growth rate.
Bank of America followed suit and curbed its projections of a likely recession this year, increasing their growth forecast for the country, as per a Reuters article, early last month. The brokerage firm has revised its outlook and no longer anticipates a mild recession in 2024.
Investors with a long-term investment horizon and a bullish outlook on the economy should not be worried even if the economy enters a mild recession in 2024. According to Forbes, historically recession tends to be of a brief duration, with the recession following World War 2 lasting around 11 months. Another notable example of the short duration of U.S. recession is the Covid-19 recession in early 2020, which lasted only two months.
Although, an economic slowdown does bring about job losses and other financial challenges, they prove to be excellent buying opportunities for long-term investors. Investors employing a long-term strategy like “buy and hold strategy” tend to benefit by buying high-quality stocks at low prices. They enjoy the benefits once the downturn subsides.
ETFs in Focus
Investors with a long-term focus, don’t have to worry about the downswings of the market. We highlight the following ETFs that investors with a long-time horizon can benefit from, without worrying about a recession.
Vanguard S&P 500 ETF (VOO)
If you're looking to invest in the U.S. stock market for the years ahead, investing in a broad market ETF like Vanguard S&P 500 ETF, can be your preferred choice. While the SPDR S&P 500 ETF SPY is widely known and serves as an alternative to the Vanguard S&P 500 ETF, VOO stands out due to its more appealing cost structure. VOO charges a low annual fee of 0.03% and has amassed a huge asset base of $331.04 billion.
Vanguard S&P 500 ETF has allocations to companies like Apple AAPL, Microsoft MSFT and Amazon AMZN, having shares of 7.56%,6.5% and 3.1%, respectively. The fund has a Zacks ETF Rank #2 (Buy).
According to a Reuters article, in late July, Citigroup raised its outlook for the market index, forecasting it to reach levels of 5,000 points in 2024, making the fund an attractive investment option for the long term.
Vanguard Growth ETF (VUG)
Vanguard Growth ETF seeks to track the performance of large-cap growth equity stocks. The fund is one the largest options in growth ETFs with an asset base of $91.55 billion and charges a low annual fee of 0.04%, making it an appealing choice.
Vanguard Growth ETF has allocations to companies like Apple, Microsoft and Amazon, having a share of 13.50%, 11.49% and 5.36%, respectively. For investors with a long-term horizon, the upside potential of growth equities make VUG a preferred option. The fund has gained 36% year to date and 20.70% over the past year (as of Aug 30).
Vanguard Information Technology ETF (VGT)
Vanguard Information Technology ETF tracks securities in the information technology sector. Amidst the current wave of optimism, fueled by the artificial intelligence (AI) enthusiasm and Nvidia's success, investing in technology is a potential gamechanger. Analysts foresee a trillion-dollar spending budget over the next decade (Read: Nvidia Earnings Show AI Boom Is Here to Stay: ETFs in Focus).
Vanguard Information Technology ETF charges a low annual fee of 0.10% and has gathered an asset base of $51.83 billion. The fund has allocations to companies like Apple, Microsoft and NVIDIA NVDA, having a share of 22.72%, 19.74% and 4.48%, respectively.
Investors can also look at AI ETFs like Global X Robotics & Artificial Intelligence ETF BOTZ, which invests in firms poised to gain from rising robotics and AI adoption (See: all the Artificial Intelligence And Robotics ETF).
Vanguard Total Bond Market ETF (BND)
Vanguard Total Bond Market ETF seeks to track the performance of the Bloomberg U.S. Aggregate Float Adjusted Index. For investors with a long-term time frame, BND offers a well-diversified option with a dividend yield of 2.90%. With the Fed turning hawkish and increasing the likelihood of elevated interest rates, BND tends to gain further (Read: Treasury ETFs on Way to Win Record Inflows in 2023: Here's Why).
Vanguard Total Bond Market ETF has an average duration of 6.5 years, along with a yield to maturity of 4.83%. BND has amassed an asset base of $94.06 billion and charges an annual fee of 0.03%, delivering a massive portfolio at a comparatively low cost.
SPDR Portfolio S&P 500 High Dividend ETF (SPYD)
SPDR Portfolio S&P 500 High Dividend ETF tracks the performance of the S&P 500 High Dividend Index, designed to measure the performance of the top 80 dividend-paying securities listed on the S&P 500 Index. With the recent economic uncertainties, investing in SPYD can prove to be a smart choice, as it provides a steady source of income regardless of prevailing market conditions. Investing in a high-dividend paying ETF over the long term can help investors to achieve attractive total returns.
SPDR Portfolio S&P 500 High Dividend ETF has a dividend yield of 4.77%, beating the benchmark U.S. 10 Year Treasury yield of 4.12% (as of Aug 30). The fund charges a low annual fee of 0.07% and has a Zacks ETF Rank #2 (Buy).
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
Vanguard S&P 500 ETF (VOO): ETF Research Reports
Vanguard Total Bond Market ETF (BND): ETF Research Reports
SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports
Vanguard Growth ETF (VUG): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Vanguard S&P 500 ETF has allocations to companies like Apple AAPL, Microsoft MSFT and Amazon AMZN, having shares of 7.56%,6.5% and 3.1%, respectively. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports Vanguard Total Bond Market ETF (BND): ETF Research Reports SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Even if the United States manages to evade a recession in 2023, the forceful monetary policy pursued by the Fed over the past 18 months could now be causing adverse effects on the economy.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports Vanguard Total Bond Market ETF (BND): ETF Research Reports SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Vanguard S&P 500 ETF has allocations to companies like Apple AAPL, Microsoft MSFT and Amazon AMZN, having shares of 7.56%,6.5% and 3.1%, respectively. Vanguard Information Technology ETF (VGT) Vanguard Information Technology ETF tracks securities in the information technology sector.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports Vanguard Total Bond Market ETF (BND): ETF Research Reports SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Vanguard S&P 500 ETF has allocations to companies like Apple AAPL, Microsoft MSFT and Amazon AMZN, having shares of 7.56%,6.5% and 3.1%, respectively. Vanguard S&P 500 ETF (VOO) If you're looking to invest in the U.S. stock market for the years ahead, investing in a broad market ETF like Vanguard S&P 500 ETF, can be your preferred choice.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports Vanguard Total Bond Market ETF (BND): ETF Research Reports SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Global X Robotics & Artificial Intelligence ETF (BOTZ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Vanguard S&P 500 ETF has allocations to companies like Apple AAPL, Microsoft MSFT and Amazon AMZN, having shares of 7.56%,6.5% and 3.1%, respectively. Difficult Economic Conditions According to Forbes, the Fed's recent projections suggest that a recession in 2023 is unlikely.
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13986.0
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2023-09-05 00:00:00 UTC
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Bankrupt Lordstown Motors proposes zero payment for Foxconn shares
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AAPL
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https://www.nasdaq.com/articles/bankrupt-lordstown-motors-proposes-zero-payment-for-foxconn-shares
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nan
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By Dietrich Knauth
NEW YORK, Sept 5 (Reuters) - Bankrupt electric vehicle manufacturer Lordstown Motors has proposed to pay nothing for Taiwan's Foxconn's preferred equity shares, saying it will prioritize other shareholders if an ongoing sales effort generates enough cash to repay other debts.
Lordstown Motors, named for the Ohio town where it is based, filed a Chapter 11 plan Friday in Delaware bankruptcy court, outlining how it intends to distribute proceeds from an ongoing effort to sell its assets. Lordstown's Chapter 11 plan warned that the value of its assets is "necessarily speculative" at this stage in the bankruptcy and "could potentially be zero."
Lordstown has set a Sept. 8 deadline for bids, with a Sept. 19 auction to follow.
The company's shareholders would only be paid after its creditors and Lordstown's Chapter 11 plan did not include an estimate of how much creditors are owed. Lordstown reported in earlier court filings that it owed about $20 million to 30 trade vendors, and recently agreed to pay $40 million to settle a trade secrets lawsuit filed by rival automaker Karma.
Even if the sale generates enough money for a shareholder payout, Lordstown proposed to pay nothing to the 300,000 preferred equity shares held by its estranged former business partner Foxconn.
A lawyer for Foxconn did not immediately respond to a request for comment.
Foxconn, formally called Hon Hai Precision Industry 2317.TWand best known for assembling Apple's AAPL.OiPhones, purchased Lordstown's manufacturing facility as part of its push into the electric vehicle market.
Lordstown sued Foxconn for failing to honor an agreement to invest $170 million in its electric truck business, and for engaging in a pattern of delays that undermined Lordstown's operations, as part of its bankruptcy filing in June.
Lordstown alleged that Foxconn purchased only $30 million of the $100 million in preferred equity shares contemplated by the disputed investment agreement. Foxconn also purchased $22.7 million of Lordstown's common shares, owning about 8.4% of the company's equity, according to court documents.
Foxconn has disputed Lordstown's "flawed" interpretation of the investment agreement in its bankruptcy court filings, saying that it had "rightfully refused to fund additional capital into Lordstown's failing business." Foxconn had asked a U.S. bankruptcy judge to dismiss Lordstown's bankruptcy, a request that the judge denied on Aug. 28.
Lordstown, once valued at $5.3 billion, manufactured just 80 electric trucks before shutting down its operations.
(Reporting by Dietrich Knauth, Editing by Alexia Garamfalvi and Timothy Gardner)
((Dietrich.Knauth@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Foxconn, formally called Hon Hai Precision Industry 2317.TWand best known for assembling Apple's AAPL.OiPhones, purchased Lordstown's manufacturing facility as part of its push into the electric vehicle market. By Dietrich Knauth NEW YORK, Sept 5 (Reuters) - Bankrupt electric vehicle manufacturer Lordstown Motors has proposed to pay nothing for Taiwan's Foxconn's preferred equity shares, saying it will prioritize other shareholders if an ongoing sales effort generates enough cash to repay other debts. Lordstown Motors, named for the Ohio town where it is based, filed a Chapter 11 plan Friday in Delaware bankruptcy court, outlining how it intends to distribute proceeds from an ongoing effort to sell its assets.
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Foxconn, formally called Hon Hai Precision Industry 2317.TWand best known for assembling Apple's AAPL.OiPhones, purchased Lordstown's manufacturing facility as part of its push into the electric vehicle market. By Dietrich Knauth NEW YORK, Sept 5 (Reuters) - Bankrupt electric vehicle manufacturer Lordstown Motors has proposed to pay nothing for Taiwan's Foxconn's preferred equity shares, saying it will prioritize other shareholders if an ongoing sales effort generates enough cash to repay other debts. Lordstown sued Foxconn for failing to honor an agreement to invest $170 million in its electric truck business, and for engaging in a pattern of delays that undermined Lordstown's operations, as part of its bankruptcy filing in June.
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Foxconn, formally called Hon Hai Precision Industry 2317.TWand best known for assembling Apple's AAPL.OiPhones, purchased Lordstown's manufacturing facility as part of its push into the electric vehicle market. By Dietrich Knauth NEW YORK, Sept 5 (Reuters) - Bankrupt electric vehicle manufacturer Lordstown Motors has proposed to pay nothing for Taiwan's Foxconn's preferred equity shares, saying it will prioritize other shareholders if an ongoing sales effort generates enough cash to repay other debts. Lordstown sued Foxconn for failing to honor an agreement to invest $170 million in its electric truck business, and for engaging in a pattern of delays that undermined Lordstown's operations, as part of its bankruptcy filing in June.
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Foxconn, formally called Hon Hai Precision Industry 2317.TWand best known for assembling Apple's AAPL.OiPhones, purchased Lordstown's manufacturing facility as part of its push into the electric vehicle market. Lordstown's Chapter 11 plan warned that the value of its assets is "necessarily speculative" at this stage in the bankruptcy and "could potentially be zero." Lordstown sued Foxconn for failing to honor an agreement to invest $170 million in its electric truck business, and for engaging in a pattern of delays that undermined Lordstown's operations, as part of its bankruptcy filing in June.
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13987.0
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2023-09-05 00:00:00 UTC
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After Hours Most Active for Sep 5, 2023 : AMZN, PYPL, MSFT, CTLT, MU, AAPL, FRSH, KIM, JBGS, NEE, KKR^C, BAC
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-sep-5-2023-%3A-amzn-pypl-msft-ctlt-mu-aapl-frsh-kim-jbgs-nee-kkr
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nan
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The NASDAQ 100 After Hours Indicator is down -17.68 to 15,490.56. The total After hours volume is currently 70,202,852 shares traded.
The following are the most active stocks for the after hours session:
Amazon.com, Inc. (AMZN) is -0.02 at $137.25, with 2,508,157 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.58. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
PayPal Holdings, Inc. (PYPL) is -0.08 at $63.66, with 2,217,956 shares traded. As reported by Zacks, the current mean recommendation for PYPL is in the "buy range".
Microsoft Corporation (MSFT) is -0.31 at $333.24, with 1,580,523 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Catalent, Inc. (CTLT) is unchanged at $50.07, with 1,520,870 shares traded. CTLT's current last sale is 104.31% of the target price of $48.
Micron Technology, Inc. (MU) is unchanged at $70.29, with 1,456,608 shares traded. As reported by Zacks, the current mean recommendation for MU is in the "buy range".
Apple Inc. (AAPL) is -0.05 at $189.65, with 1,443,732 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Freshworks Inc. (FRSH) is unchanged at $22.23, with 1,263,023 shares traded. As reported by Zacks, the current mean recommendation for FRSH is in the "buy range".
Kimco Realty Corporation (KIM) is unchanged at $18.53, with 1,248,428 shares traded. KIM's current last sale is 80.57% of the target price of $23.
JBG SMITH Properties (JBGS) is -0.01 at $15.99, with 1,219,288 shares traded. JBGS's current last sale is 106.6% of the target price of $15.
NextEra Energy, Inc. (NEE) is unchanged at $66.20, with 1,176,044 shares traded., following a 52-week high recorded in today's regular session.
KKR & Co. Inc. (KKR^C) is +0.1999 at $72.67, with 1,139,161 shares traded.
Bank of America Corporation (BAC) is -0.02 at $28.63, with 1,127,760 shares traded. BAC's current last sale is 81.94% of the target price of $34.94.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.05 at $189.65, with 1,443,732 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023.
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Apple Inc. (AAPL) is -0.05 at $189.65, with 1,443,732 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
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Apple Inc. (AAPL) is -0.05 at $189.65, with 1,443,732 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 70,202,852 shares traded.
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Apple Inc. (AAPL) is -0.05 at $189.65, with 1,443,732 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Amazon.com, Inc. (AMZN) is -0.02 at $137.25, with 2,508,157 shares traded.
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13988.0
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2023-09-05 00:00:00 UTC
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SoftBank's Arm starts IPO road show in Baltimore to court T. Rowe Price
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AAPL
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https://www.nasdaq.com/articles/softbanks-arm-starts-ipo-road-show-in-baltimore-to-court-t.-rowe-price
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nan
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nan
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By Echo Wang and Anirban Sen
NEW YORK, Sept 5 (Reuters) - Arm Holdings Ltd, the chip designer owned by SoftBank Group Corp 9984.T, began its marketing road show for its blockbuster initial public offering on Tuesday in Baltimore, where T. Rowe Price is headquartered, underscoring the fund manager's significance as a potential investor.
Arm is also meeting with other potential investors, including Arlington, Virginia-based Sands Capital, in Baltimore on Tuesday, according to people familiar with the matter.
The chip designer is expected to meet with other investors in cities including New York in the days leading up to the pricing of its IPO on Sept. 13, the sources said.
Arm declined to comment. T. Rowe Price and Sands Capital did not immediately respond to requests for comment.
Earlier on Tuesday, Arm said it would seek to raise about $4.9 billion at a valuation of more than $52 billion from its IPO, which is expected to be the biggest stock market flotation of the year.
Arm has signed up many of its major clients as investors in its IPO, including Apple AAPL.O, Nvidia NVDA.O, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS.
Arm has said that cornerstone investors have separately indicated an interest in buying a combined $735 million of the American Depositary Shares (ADS) being sold.
SoftBank's Arm aims for over $52 bln valuation in biggest US IPO of the year
SoftBank's Arm to ask for $47 to $51 per share in IPO -sources
Nvidia in talks to become anchor investor in Arm IPO - sources
SoftBank buys Vision Fund's stake in Arm at valuation of $64 bln-sources
SoftBank in talks to buy Vision Fund's 25% stake in Arm -sources
Arm prepares to meet investors ahead of blockbuster IPO -sources
ANALYSIS-Stock sale frenzy foretells US IPO market comeback
ANALYSIS-Arm's China relationship complicates IPO
BREAKINGVIEWS-Arm’s changing business model is wildcard for IPO
BREAKINGVIEWS-SoftBank’s reduced Arm price tag is still too high
BREAKINGVIEWS-Nvidia gives Arm IPO a double leg-up
GRAPHIC-History of Arm's valuation multiple before SoftBank bid https://tmsnrt.rs/3RoQB6H
GRAPHIC-Breakdown of SoftBank Group's asset portfolio https://tmsnrt.rs/45N0YF5
GRAPHIC-Arm is the second largest equity holding of SoftBank https://tmsnrt.rs/3KzUXDp
(Reporting by Echo Wang and Anirban Sen in New York; Editing by Nick Zieminski)
((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters Messaging: Signal/Telegram/Whatsapp - +1-646-705-9409))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Arm has signed up many of its major clients as investors in its IPO, including Apple AAPL.O, Nvidia NVDA.O, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS. By Echo Wang and Anirban Sen NEW YORK, Sept 5 (Reuters) - Arm Holdings Ltd, the chip designer owned by SoftBank Group Corp 9984.T, began its marketing road show for its blockbuster initial public offering on Tuesday in Baltimore, where T. Rowe Price is headquartered, underscoring the fund manager's significance as a potential investor. Arm is also meeting with other potential investors, including Arlington, Virginia-based Sands Capital, in Baltimore on Tuesday, according to people familiar with the matter.
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Arm has signed up many of its major clients as investors in its IPO, including Apple AAPL.O, Nvidia NVDA.O, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS. By Echo Wang and Anirban Sen NEW YORK, Sept 5 (Reuters) - Arm Holdings Ltd, the chip designer owned by SoftBank Group Corp 9984.T, began its marketing road show for its blockbuster initial public offering on Tuesday in Baltimore, where T. Rowe Price is headquartered, underscoring the fund manager's significance as a potential investor. Arm is also meeting with other potential investors, including Arlington, Virginia-based Sands Capital, in Baltimore on Tuesday, according to people familiar with the matter.
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Arm has signed up many of its major clients as investors in its IPO, including Apple AAPL.O, Nvidia NVDA.O, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS. By Echo Wang and Anirban Sen NEW YORK, Sept 5 (Reuters) - Arm Holdings Ltd, the chip designer owned by SoftBank Group Corp 9984.T, began its marketing road show for its blockbuster initial public offering on Tuesday in Baltimore, where T. Rowe Price is headquartered, underscoring the fund manager's significance as a potential investor. Arm is also meeting with other potential investors, including Arlington, Virginia-based Sands Capital, in Baltimore on Tuesday, according to people familiar with the matter.
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Arm has signed up many of its major clients as investors in its IPO, including Apple AAPL.O, Nvidia NVDA.O, Alphabet GOOGL.O, Advanced Micro Devices AMD.O, Intel INTC.O and Samsung Electronics 005930.KS. By Echo Wang and Anirban Sen NEW YORK, Sept 5 (Reuters) - Arm Holdings Ltd, the chip designer owned by SoftBank Group Corp 9984.T, began its marketing road show for its blockbuster initial public offering on Tuesday in Baltimore, where T. Rowe Price is headquartered, underscoring the fund manager's significance as a potential investor. T. Rowe Price and Sands Capital did not immediately respond to requests for comment.
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13989.0
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2023-09-05 00:00:00 UTC
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Dow Analyst Moves: AAPL
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AAPL
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https://www.nasdaq.com/articles/dow-analyst-moves%3A-aapl-6
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nan
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nan
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The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #9 analyst pick. Apple also comes in above the median of analyst picks among the broader S&P 500 index components, claiming the #128 spot out of 500.
Looking at the stock price movement year to date, Apple is showing a gain of 45.8%.
VIDEO: Dow Analyst Moves: AAPL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #9 analyst pick. Apple also comes in above the median of analyst picks among the broader S&P 500 index components, claiming the #128 spot out of 500.
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VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #9 analyst pick. Apple also comes in above the median of analyst picks among the broader S&P 500 index components, claiming the #128 spot out of 500.
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VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #9 analyst pick. Apple also comes in above the median of analyst picks among the broader S&P 500 index components, claiming the #128 spot out of 500.
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VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #9 analyst pick. Apple also comes in above the median of analyst picks among the broader S&P 500 index components, claiming the #128 spot out of 500.
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13990.0
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2023-09-05 00:00:00 UTC
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Alphabet (GOOGL) Adds Latest Feature to Google Keep App
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AAPL
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https://www.nasdaq.com/articles/alphabet-googl-adds-latest-feature-to-google-keep-app
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Alphabet’s GOOGL division Google added a feature for text formatting to its Android and web note-taking application, Google Keep.
The new feature offers a more complex approach to documents, allowing users to use bold or italicized text for easier understanding.
Further, it comes with headers options, such as H1 and H2, allowing users to format bold, italicized and underlined text and split thoughts into sections, with a few new buttons for more customization.
These useful attributes are expected to bolster the adoption rate of Google Keep in the days ahead.
We note that the latest move has added strength to the company’s Google Services segment.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Stiff Competition
We believe that the new feature added to Google’s note-taking app is a strategic move to compete with its industry peers like Microsoft MSFT and Apple AAPL.
Microsoft recently integrated its newly introduced in-house built AI system, Copilot, into its note-taking app, Microsoft OneNote.
This new update enhances the appearance of digital notebooks, enables content organization, adjusts formatting and highlights key points using your own words, offering an edge to the company’s note-taking app.
Similarly, Apple’s introduction of new features to its Apple Notes app remains noteworthy. The features enable Apple users to take quick notes on their iPhones and organize notes in a Smart Folder.
Strength in Google Services
Apart from the latest move, the company recently unveiled new automation features to the Google Home application, which enable customers to use various signals from their smart home devices, sensors and electric vehicles.
Further, Google’s expansion of its free streaming lineup on Google TV will likely aid it to capitalize on the growing demand for free ad-supported streaming TV channels. This remains a major positive.
All the abovementioned endeavors are expected to continue aiding the performance of the Google Services segment.
Revenues from the Google Services business increased 5.5% year over year to $66.3 billion, accounting for 88.8% of the total second-quarter revenues.
Our model projects Google Services revenues for 2023 at $267.05 billion, reflecting growth of 5.3% from 2022.
We believe that strength in the underlined segment will likely aid its overall financial performance. This, in turn, is expected to instill investor optimism in the stock.
Our model estimate for 2023 total revenues stands at $300.45 billion, indicating growth of 6.2% from 2022.
Alphabet has gained 53.8% on a year-to-date basis compared with the industry’s growth of 52.9%.
Zacks Rank & Stock to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is Applied Materials AMAT, which carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Applied Materials have gained 58.1% in the year-to-date period. AMAT’s long-term earnings growth rate is projected at 6.10%.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Stiff Competition We believe that the new feature added to Google’s note-taking app is a strategic move to compete with its industry peers like Microsoft MSFT and Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Further, it comes with headers options, such as H1 and H2, allowing users to format bold, italicized and underlined text and split thoughts into sections, with a few new buttons for more customization.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Stiff Competition We believe that the new feature added to Google’s note-taking app is a strategic move to compete with its industry peers like Microsoft MSFT and Apple AAPL. Strength in Google Services Apart from the latest move, the company recently unveiled new automation features to the Google Home application, which enable customers to use various signals from their smart home devices, sensors and electric vehicles.
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Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Stiff Competition We believe that the new feature added to Google’s note-taking app is a strategic move to compete with its industry peers like Microsoft MSFT and Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Alphabet’s GOOGL division Google added a feature for text formatting to its Android and web note-taking application, Google Keep.
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Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Stiff Competition We believe that the new feature added to Google’s note-taking app is a strategic move to compete with its industry peers like Microsoft MSFT and Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. We note that the latest move has added strength to the company’s Google Services segment.
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13991.0
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2023-09-05 00:00:00 UTC
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3 Blue-Chip Stocks That Can Consistently Beat Index Returns
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AAPL
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https://www.nasdaq.com/articles/3-blue-chip-stocks-that-can-consistently-beat-index-returns
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
I believe it is very important to explore blue-chip stocks if you’re an investor looking to beat the market. If we look at the S&P 500 index, the 10-year annualized (price returns) have been healthy at 10.71%. By just investing in the index, an investor could have easily delivered positive returns when adjusted for inflation.
However, the story does not end here. During the same 10-year period, Costco Wholesale (NASDAQ:COST) stock has delivered annualized returns of 18%. COST stock is just one example of blue-chip stocks that consistently outperformed the index.
Without a doubt, there will be growth stocks that have significantly outperformed index returns in the last 10 years. However, at any point in time, it’s risky to allocate more than 50% of the portfolio towards growth stocks, given the high-beta factor.
Blue-chip stocks are important for capital preservation and steady returns. This column focuses on quality blue-chip stocks to buy that can consistently best index returns over the next 10 years.
Tesla (TSLA)
Source: sdx15 / Shutterstock.com
Tesla (NASDAQ:TSLA) stock has made a strong comeback in 2023 after a big correction last year. Given the industry tailwinds and the company’s brand pull, I believe that TSLA stock is a buy-and-hold.
Talking about blue chips, the first point to note is strong fundamentals. As of Q2 2023, Tesla reported cash and equivalents of $23 billion. Further, the company is on track to report annual operating cash flow of $12 to $14 billion.
This is important as Tesla has set an ambitious target of selling 20 million EVs annually by 2030. To achieve this target, the company must invest in building multiple factories. With high financial flexibility, I don’t see any challenge on that front.
It’s also worth noting that Tesla has a strong line-up of new models. This includes Cybertruck, Roadster, and Tesla Semi. With investment in research and development, the company is likely to maintain a healthy market share amidst growing competition. I, therefore, see TSLA stock as a sustained value creator.
Apple (AAPL)
Source: Moab Republic / Shutterstock
Apple (NASDAQ:AAPL) stock has witnessed a big rally of 50% year-to-date. As an innovator, the company is positioned to grow steadily and create massive long-term value. I also believe that AAPL stock is among the attractive dividend growth stocks to buy and hold.
Starting with fundamentals, Apple reported $28.4 billion in cash and equivalents as of Q3 2023. Further, the company delivered an operating cash flow of $89 billion for the first nine months of the financial year.
Clearly, financial flexibility is robust for dividends, share repurchases, and aggressive investments.
It’s worth noting that for Q3, the company’s services revenue reached an all-time high of $21.2 billion. While the iPhone segment remains the cash cow, emerging segments like services and wearables will drive long-term growth.
Another point to note is that for Q3, Apple reported revenue of $15.7 billion from Greater China. For the same period, revenue from the rest of Asia-Pacific was at $5.6 billion. There is ample scope for growth in other emerging markets like India.
Lockheed Martin (LMT)
Source: ranchorunner / Shutterstock.com
Last year, global defense spending increased by 3.7% in real terms to reach a record high of $2.24 trillion. A key highlight was robust growth in defense spending in Europe. I expect global defense spending growth to be sustained, with geopolitical tensions remaining high.
Considering the industry tailwinds, Lockheed Martin (NYSE:LMT) stock is worth considering among blue-chip stocks to buy. It’s worth noting that LMT stock trades at an attractive forward price-earnings ratio of 16.5. Further, a dividend yield of 2.68% is robust.
In terms of fundamentals, Lockheed ended Q2 2023 with a record order backlog of $158 billion. With the company catering to the U.S. and Allies, robust growth in defense spending in Europe is a crucial catalyst. I expect the order intake to remain healthy, and Lockheed is positioned to generate strong free cash flows.
It’s also worth noting that Lockheed is focused on advanced technologies such as hypersonic capabilities. Innovation will help in accelerating revenue growth in 2024 and beyond, which is why I think this is one of the top blue-chip stocks to buy.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
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The post 3 Blue-Chip Stocks That Can Consistently Beat Index Returns appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) stock has witnessed a big rally of 50% year-to-date. I also believe that AAPL stock is among the attractive dividend growth stocks to buy and hold. Lockheed Martin (LMT) Source: ranchorunner / Shutterstock.com Last year, global defense spending increased by 3.7% in real terms to reach a record high of $2.24 trillion.
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Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) stock has witnessed a big rally of 50% year-to-date. I also believe that AAPL stock is among the attractive dividend growth stocks to buy and hold. Tesla (TSLA) Source: sdx15 / Shutterstock.com Tesla (NASDAQ:TSLA) stock has made a strong comeback in 2023 after a big correction last year.
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I also believe that AAPL stock is among the attractive dividend growth stocks to buy and hold. Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) stock has witnessed a big rally of 50% year-to-date. InvestorPlace - Stock Market News, Stock Advice & Trading Tips I believe it is very important to explore blue-chip stocks if you’re an investor looking to beat the market.
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I also believe that AAPL stock is among the attractive dividend growth stocks to buy and hold. Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) stock has witnessed a big rally of 50% year-to-date. It’s worth noting that for Q3, the company’s services revenue reached an all-time high of $21.2 billion.
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13992.0
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2023-09-05 00:00:00 UTC
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Bear of the Day: Paramount Global (PARA)
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AAPL
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https://www.nasdaq.com/articles/bear-of-the-day%3A-paramount-global-para
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Company Overview
Zacks Rank #5 (Strong Sell) stock Paramount Global (PARA), formerly ViacomCBS, is a multinational media and entertainment conglomerate with a diverse portfolio of brands and assets. However, the company is mainly focused on creating, distributing, and monetizing content across different platforms, including television, film, digital streaming, and live events. Paramount Global owns and operates well-known entertainment brands such as Paramount Pictures, Paramount+ streaming service, MTV, CBS, Nickelodeon, Showtime, and others. The company also produces a wide range of content, including movies, TV shows, news programs, and digital content, catering to a global audience.
Ballooning Debt
Friday, Moody’s, a global financial services company specializing in credit ratings, research, and risk analysis, cut Paramount Global’s debt rating from Baa2 to Baa3, one step above “noninvestment” grade. Paramount currently has more than $15 billion in long-term debt.
Image Source: Zacks Investment Research
Because of the company’s outsized long-term debt, it has been forced to make cuts elsewhere. Recently, Paramount agreed to sell its Simon & Schuster book division and was forced to slash its quarterly dividend by nearly 80% to raise cash.
A Rapidly Changing Industry
Paramount’s business is being hurt by changing consumer preferences. Consumers are increasingly “cord-cutting” more than ever due to the many advantages over traditional cable such as cost savings, content variety and personalization, ad-free viewing and commitment free subscriptions. Though Paramount has a streaming service of its own, it faces stiff competition from strong existing streaming companies such as Netflix (NFLX), Amazon (AMZN) Prime, Apple (AAPL) TV, Disney (DIS) +, and many more. Global advertising is also adversely impacting Paramount. Year-over-year advertising revenues dropped 5.9% amid a weak global advertising market and fewer NFL games aired. As a result, annual EPS has moved in the wrong direction for investors and has declined for five consecutive years.
Image Source: Zacks Investment Research
Relative Weakness
PARA’s price and volume action is mirroring its weakening fundamental picture. In the past five years, PARA stock is down 74.2%, drastically underperforming the S&P 500 Index’s gain of 58.6% over the same period. How weak has PARA been? The stock is now knocking on the door of the 2020 COVID-19 pandemic crash lows.
Image Source: Zacks Investment Research
Bottom Line
The recent Moody’s downgrade of Paramount Global’s debt rating underscores the risk inherent in the stock. The company’s long-term debt exceeds $15 billion, its quarterly dividend is shrinking, and fierce competition from streaming giants will likely cap new growth opportunities.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Paramount Global (PARA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Though Paramount has a streaming service of its own, it faces stiff competition from strong existing streaming companies such as Netflix (NFLX), Amazon (AMZN) Prime, Apple (AAPL) TV, Disney (DIS) +, and many more. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. Company Overview Zacks Rank #5 (Strong Sell) stock Paramount Global (PARA), formerly ViacomCBS, is a multinational media and entertainment conglomerate with a diverse portfolio of brands and assets.
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Though Paramount has a streaming service of its own, it faces stiff competition from strong existing streaming companies such as Netflix (NFLX), Amazon (AMZN) Prime, Apple (AAPL) TV, Disney (DIS) +, and many more. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. Ballooning Debt Friday, Moody’s, a global financial services company specializing in credit ratings, research, and risk analysis, cut Paramount Global’s debt rating from Baa2 to Baa3, one step above “noninvestment” grade.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. Though Paramount has a streaming service of its own, it faces stiff competition from strong existing streaming companies such as Netflix (NFLX), Amazon (AMZN) Prime, Apple (AAPL) TV, Disney (DIS) +, and many more. Ballooning Debt Friday, Moody’s, a global financial services company specializing in credit ratings, research, and risk analysis, cut Paramount Global’s debt rating from Baa2 to Baa3, one step above “noninvestment” grade.
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Though Paramount has a streaming service of its own, it faces stiff competition from strong existing streaming companies such as Netflix (NFLX), Amazon (AMZN) Prime, Apple (AAPL) TV, Disney (DIS) +, and many more. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Paramount Global (PARA) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Because of the company’s outsized long-term debt, it has been forced to make cuts elsewhere.
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13993.0
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2023-09-05 00:00:00 UTC
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Foxconn's August sales drop 8% y/y, Q3 outlook better
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AAPL
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https://www.nasdaq.com/articles/foxconns-august-sales-drop-8-y-y-q3-outlook-better
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nan
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nan
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TAIPEI, Sept 5 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker and a major supplier for Apple, said on Tuesday revenue in August fell 8% year-on-year but forecast a better business outlook ahead of new product releases by major customer Apple.
Foxconn 2317.TW, formally called Hon Hai Precision Industry Co Ltd, said revenue last month reached T$412.83 billion ($12.93 billion), down 12% from July.
Revenue in its smart consumer electronics products, including smartphones, declined in August on the year due to "customers' conservative pull-in", the company said in a statement without elaborating.
Summer is traditionally a busy time for Foxconn as major vendors such as Apple gear up for new product launches ahead of the end-of-year holiday shopping season.
"With the second half of the year peak season currently underway, operations will gradually ramp up," Foxconn said.
"The outlook for the third quarter, which will be better than the second quarter, is expected to increase at an on-quarter pace higher than the average level of the previous two years."
Apple will host its fall event on Sept. 12, setting the stage for what analysts believe will be the unveiling of a new line of iPhones and smartwatches.
Other businesses, including computing products such as PCs and cloud and networking products, declined from a year ago, Foxconn said, without elaborating.
Foxconn beat estimates for second-quarter earnings unveiled last month thanks to a booming artificial intelligence sector but it retained a cautious outlook for this year due to global economic uncertainties.
The company downgraded its outlook for full-year revenue to a slight decline from a previous guidance of flat as it joined other companies grappling with a weak global economy and a sluggish recovery in China.
Foxconn's Taipei-listed shares closed up 0.5% on Tuesday ahead of the release of its August sales, compared with flat in the broader market .TWII.
($1 = 31.9170 Taiwan dollars)
(Reporting by Yimou Lee and Ben Blanchard; Editing by Robert Birsel)
((ben.blanchard@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Revenue in its smart consumer electronics products, including smartphones, declined in August on the year due to "customers' conservative pull-in", the company said in a statement without elaborating. Summer is traditionally a busy time for Foxconn as major vendors such as Apple gear up for new product launches ahead of the end-of-year holiday shopping season. Foxconn beat estimates for second-quarter earnings unveiled last month thanks to a booming artificial intelligence sector but it retained a cautious outlook for this year due to global economic uncertainties.
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TAIPEI, Sept 5 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker and a major supplier for Apple, said on Tuesday revenue in August fell 8% year-on-year but forecast a better business outlook ahead of new product releases by major customer Apple. Revenue in its smart consumer electronics products, including smartphones, declined in August on the year due to "customers' conservative pull-in", the company said in a statement without elaborating. Other businesses, including computing products such as PCs and cloud and networking products, declined from a year ago, Foxconn said, without elaborating.
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TAIPEI, Sept 5 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker and a major supplier for Apple, said on Tuesday revenue in August fell 8% year-on-year but forecast a better business outlook ahead of new product releases by major customer Apple. Revenue in its smart consumer electronics products, including smartphones, declined in August on the year due to "customers' conservative pull-in", the company said in a statement without elaborating. Other businesses, including computing products such as PCs and cloud and networking products, declined from a year ago, Foxconn said, without elaborating.
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TAIPEI, Sept 5 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker and a major supplier for Apple, said on Tuesday revenue in August fell 8% year-on-year but forecast a better business outlook ahead of new product releases by major customer Apple. Foxconn 2317.TW, formally called Hon Hai Precision Industry Co Ltd, said revenue last month reached T$412.83 billion ($12.93 billion), down 12% from July. Revenue in its smart consumer electronics products, including smartphones, declined in August on the year due to "customers' conservative pull-in", the company said in a statement without elaborating.
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13994.0
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2023-09-05 00:00:00 UTC
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US STOCKS-Futures fall as rising yield, China service data weigh
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-fall-as-rising-yield-china-service-data-weigh
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.07%, S&P 0.20%, Nasdaq 0.38%
Sept 5 (Reuters) - U.S. stock index futures fell on Tuesday as higher Treasury yields weighed on growth stocks, while a slow pace of expansion in services activity in China stoked worries over demand in the world's second largest economy.
Yield on the 10-year Treasury notes US10YT=RR climbed to 4.21% ahead of more economic data and the Federal Reserve's policy meeting later this month.
Shares of Apple AAPL.O, Nvidia NVDA.O, Tesla TSLA.O and Netflix NFLX.O lost between 0.6% and 1% before the bell.
Adding to the downbeat mood, a private survey showed China's services activity expanded at the slowest pace in eight months in August, as weak demand persisted and stimulus efforts failed to meaningfully revive consumption.
The news sent U.S.-listed shares of Chinese companies including PDD Holdings PDD.O, JD.com JD.O, Baidu BIDU.O and Alibaba BABA.N down between 0.9% and 1.7%.
The S&P 500 .SPXended higher on Friday after a jump in unemployment cemented expectations of a pause in the Fed's interest rate hikes this month.
Traders' bets that the Fed will leave rates unchanged in the next policy meeting stood at 93%, while pricing in a 62% chance of a pause in November, up from 52% a week ago, according to the CME FedWatch tool.
Meanwhile, Goldman Sachs GS.Nlowered the chances of a U.S recession in the next 12 months to 15% from 20% amid continued easing inflation and labor market data.
Investors now await factory orders data due at 10:00 a.m. ET.
At 5:19 a.m. ET, Dow e-minis 1YMcv1 were down 24 points, or 0.07%, S&P 500 e-minis EScv1 were down 9.25 points, or 0.2%, and Nasdaq 100 e-minis NQcv1 were down 58.5 points, or 0.38%.
Among other stocks, shares of Airbnb ABNB.O and Blackstone BX.N added 5.2% and 4.3% , respectively, in premarket trading as the companies were set to join the S&P 500 index.
Oracle ORCL.O gained 1.6% after Barclays upgraded the software firm to "overweight" from "equal weight."
Next week, focus will be on the consumer price index data, which could offer clues on inflationary pressures in August. The Fed's next policy meeting is on Sept. 20.
(Reporting by Shristi Achar A in Bengaluru; Editing by Arun Koyyur)
((Shristi.AcharA@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Apple AAPL.O, Nvidia NVDA.O, Tesla TSLA.O and Netflix NFLX.O lost between 0.6% and 1% before the bell. Adding to the downbeat mood, a private survey showed China's services activity expanded at the slowest pace in eight months in August, as weak demand persisted and stimulus efforts failed to meaningfully revive consumption. The S&P 500 .SPXended higher on Friday after a jump in unemployment cemented expectations of a pause in the Fed's interest rate hikes this month.
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Shares of Apple AAPL.O, Nvidia NVDA.O, Tesla TSLA.O and Netflix NFLX.O lost between 0.6% and 1% before the bell. Futures down: Dow 0.07%, S&P 0.20%, Nasdaq 0.38% Sept 5 (Reuters) - U.S. stock index futures fell on Tuesday as higher Treasury yields weighed on growth stocks, while a slow pace of expansion in services activity in China stoked worries over demand in the world's second largest economy. Adding to the downbeat mood, a private survey showed China's services activity expanded at the slowest pace in eight months in August, as weak demand persisted and stimulus efforts failed to meaningfully revive consumption.
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Shares of Apple AAPL.O, Nvidia NVDA.O, Tesla TSLA.O and Netflix NFLX.O lost between 0.6% and 1% before the bell. Futures down: Dow 0.07%, S&P 0.20%, Nasdaq 0.38% Sept 5 (Reuters) - U.S. stock index futures fell on Tuesday as higher Treasury yields weighed on growth stocks, while a slow pace of expansion in services activity in China stoked worries over demand in the world's second largest economy. Yield on the 10-year Treasury notes US10YT=RR climbed to 4.21% ahead of more economic data and the Federal Reserve's policy meeting later this month.
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Shares of Apple AAPL.O, Nvidia NVDA.O, Tesla TSLA.O and Netflix NFLX.O lost between 0.6% and 1% before the bell. Futures down: Dow 0.07%, S&P 0.20%, Nasdaq 0.38% Sept 5 (Reuters) - U.S. stock index futures fell on Tuesday as higher Treasury yields weighed on growth stocks, while a slow pace of expansion in services activity in China stoked worries over demand in the world's second largest economy. Traders' bets that the Fed will leave rates unchanged in the next policy meeting stood at 93%, while pricing in a 62% chance of a pause in November, up from 52% a week ago, according to the CME FedWatch tool.
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13995.0
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2023-09-05 00:00:00 UTC
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Should First Trust Dow 30 Equal Weight ETF (EDOW) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-first-trust-dow-30-equal-weight-etf-edow-be-on-your-investing-radar-0
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nan
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nan
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Launched on 08/08/2017, the First Trust Dow 30 Equal Weight ETF (EDOW) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by First Trust Advisors. It has amassed assets over $245.61 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.50%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.87%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 21.20% of the portfolio. Financials and Industrials round out the top three.
Looking at individual holdings, Visa Inc. (class A) (V) accounts for about 3.51% of total assets, followed by Apple Inc. (AAPL) and Verizon Communications Inc. (VZ).
The top 10 holdings account for about 34.33% of total assets under management.
Performance and Risk
EDOW seeks to match the performance of the Dow Jones Industrial Average Equal Weight Index before fees and expenses. The Dow Jones Industrial Average Equal Weight Index is an equally weighted index designed to be a price neutral version of the price-weighted DJIA.
The ETF has gained about 6.82% so far this year and was up about 13.37% in the last one year (as of 09/05/2023). In the past 52-week period, it has traded between $24.82 and $31.03.
The ETF has a beta of 0.91 and standard deviation of 15.64% for the trailing three-year period. With about 31 holdings, it has more concentrated exposure than peers.
Alternatives
First Trust Dow 30 Equal Weight ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, EDOW is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $355.10 billion in assets, SPDR S&P 500 ETF has $413.60 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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First Trust Dow 30 Equal Weight ETF (EDOW): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Visa Inc. (class A) (V) accounts for about 3.51% of total assets, followed by Apple Inc. (AAPL) and Verizon Communications Inc. (VZ). Click to get this free report First Trust Dow 30 Equal Weight ETF (EDOW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Launched on 08/08/2017, the First Trust Dow 30 Equal Weight ETF (EDOW) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report First Trust Dow 30 Equal Weight ETF (EDOW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Visa Inc. (class A) (V) accounts for about 3.51% of total assets, followed by Apple Inc. (AAPL) and Verizon Communications Inc. (VZ). Performance and Risk EDOW seeks to match the performance of the Dow Jones Industrial Average Equal Weight Index before fees and expenses.
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Click to get this free report First Trust Dow 30 Equal Weight ETF (EDOW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Visa Inc. (class A) (V) accounts for about 3.51% of total assets, followed by Apple Inc. (AAPL) and Verizon Communications Inc. (VZ). Alternatives First Trust Dow 30 Equal Weight ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Visa Inc. (class A) (V) accounts for about 3.51% of total assets, followed by Apple Inc. (AAPL) and Verizon Communications Inc. (VZ). Click to get this free report First Trust Dow 30 Equal Weight ETF (EDOW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Launched on 08/08/2017, the First Trust Dow 30 Equal Weight ETF (EDOW) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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13996.0
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2023-09-05 00:00:00 UTC
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2 Stocks That Long-Term Investors Should Buy Now
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AAPL
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https://www.nasdaq.com/articles/2-stocks-that-long-term-investors-should-buy-now
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nan
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nan
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Over the long term, stocks deliver the highest returns of any asset class - and patient investors who buy and hold quality companies run by efficient management tend to generate handsome returns. A pertinent example of long-term investing would be Warren Buffett, who even at the age of 93 has almost all of his wealth tied up in Berkshire Hathaway (BRK.B) shares, and says his favorite holding period is “forever.”
Accounting for the impact of compound interest, which has been described by some investors as the “eighth wonder of the world," Berkshire Hathaway stock rose 3,787,464% from 1965 through 2022, compared to the 24,708% gains delivered by the S&P 500 ($SPX), after accounting for dividends.
The virtues of long-term investing can’t be overstated, and I believe both Apple (AAPL) and Amazon (AMZN) are two stocks that long-term investors can buy now.
U.S. Tech Stocks Remain an Attractive Asset Class
U.S. tech stocks are an attractive asset class, and over the long term, they have outperformed the wider markets. Apple is the biggest tech company by market cap globally, and the stock is among those names which investors can practically hold for life.
AAPL has delivered market-beating returns consistently over the years, and has risen at a CAGR of more than 27% over the last 10 years – far outstripping the S&P 500’s returns over the period.
The stock has some unique characteristics which make it a mix of growth and value. Investors see it as a safe bet amid periods of economic turmoil, as best exemplified in 2022 when it emerged as the best-performing FAANG stock – and the only one among the pack to outperform the Nasdaq Composite Index ($NASX).
AAPL also does well when growth stocks are the “flavor,” and rose over 80% each in 2019 and 2020 – and was the best-performing FAANG stock in both of those years.
www.barchart.com
Apple: A Good Buy for Long-Term Investors
Overall, Apple is among the best long-term stocks to buy for the following reasons.
Apple has a strong brand with global reach - and while those already using Apple products like the iPhone are almost addicted to them, it remains an aspirational product for many others. As Buffett said in an interview with CNBC, "If you're an Apple user and somebody offers you $10,000, but the only proviso is that they'll take away your iPhone and you'll never be able to buy another, you're not gonna take it.”
Apple has built a strong ecosystem and boasts an installed base of over 2 billion devices, along with the prospect of recurring revenues from 1 billion paid subscriptions. As the company expands in verticals like financial services and healthcare – and launches new products like augmented reality (AR) headsets which are expected in 2024 – its target market should also increase.
Apple is also expanding into new markets, which will also help it expand its installed base.
While Apple stock has risen from its August lows, it still looks like a good buy for long-term investors, given the company’s strong track record on innovation and efficient capital allocation.
Amazon: An Attractive Long-Term Buy
Amazon is another stock that looks like a good buy for the long term, even as the stock has underperformed since hitting its all-time highs in mid-2021. The company has an enviable ecosystem, and is present in multiple high-growth industries. It is the largest ecommerce company in the U.S. by a fairly wide margin, and similarly leads the cloud infrastructure market with over a third of the market share.
Amazon also has sizeable streaming operations, and has over 200 million Prime subscribers per its most recent update. The service is not only a revenue driver for Amazon, but is part of the overall ecosystem and helps improve customer “stickiness.”
The company’s digital advertising business is growing in the double digits, and revenues rose to almost $10.7 billion in Q2 2023 – which makes it the biggest contributor to growth at a time when the other segments are experiencing a short-term slowdown. Furthermore, the growth potential in artificial intelligence (AI) remains quite underappreciated, even as many other tech stocks have seen a rerating amid the artificial intelligence (AI) euphoria.
Amazon's business-to-business (B2B) platform, Amazon Business, is another potential growth driver to watch, as annualized gross revenues for the division are now at $35 billion.
AMZN Stock Forecast
Wall Street analysts are also quite bullish on Amazon stock, and it has a consensus rating of Strong Buy.
www.barchart.com
Of the 39 analysts covering AMZN stock, 34 rate it as a Strong Buy, while 4 call it a Moderate Buy. The remaining 1 analyst rates the stock as a Hold. Amazon's mean target price of $166.85 is a premium of roughly 22% over current levels.
While Amazon faces challenges - including the looming sword of an antitrust lawsuit in the U.S., and increased competition in e-commerce and cloud – the company still offers among the best risk-reward propositions for long-term investors.
On the date of publication, Mohit Oberoi had a position in: AMZN , AAPL , BRK.B . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The virtues of long-term investing can’t be overstated, and I believe both Apple (AAPL) and Amazon (AMZN) are two stocks that long-term investors can buy now. AAPL has delivered market-beating returns consistently over the years, and has risen at a CAGR of more than 27% over the last 10 years – far outstripping the S&P 500’s returns over the period. AAPL also does well when growth stocks are the “flavor,” and rose over 80% each in 2019 and 2020 – and was the best-performing FAANG stock in both of those years.
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The virtues of long-term investing can’t be overstated, and I believe both Apple (AAPL) and Amazon (AMZN) are two stocks that long-term investors can buy now. AAPL has delivered market-beating returns consistently over the years, and has risen at a CAGR of more than 27% over the last 10 years – far outstripping the S&P 500’s returns over the period. AAPL also does well when growth stocks are the “flavor,” and rose over 80% each in 2019 and 2020 – and was the best-performing FAANG stock in both of those years.
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The virtues of long-term investing can’t be overstated, and I believe both Apple (AAPL) and Amazon (AMZN) are two stocks that long-term investors can buy now. AAPL has delivered market-beating returns consistently over the years, and has risen at a CAGR of more than 27% over the last 10 years – far outstripping the S&P 500’s returns over the period. AAPL also does well when growth stocks are the “flavor,” and rose over 80% each in 2019 and 2020 – and was the best-performing FAANG stock in both of those years.
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The virtues of long-term investing can’t be overstated, and I believe both Apple (AAPL) and Amazon (AMZN) are two stocks that long-term investors can buy now. AAPL also does well when growth stocks are the “flavor,” and rose over 80% each in 2019 and 2020 – and was the best-performing FAANG stock in both of those years. AAPL has delivered market-beating returns consistently over the years, and has risen at a CAGR of more than 27% over the last 10 years – far outstripping the S&P 500’s returns over the period.
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13997.0
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2023-09-05 00:00:00 UTC
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A Bull Market Could Be Here: 2 Reasons to Buy Apple Stock
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AAPL
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https://www.nasdaq.com/articles/a-bull-market-could-be-here%3A-2-reasons-to-buy-apple-stock-0
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nan
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nan
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Apple (NASDAQ: AAPL) shares have slid 4% since the start of August, with investors disappointed by revenue declines in several of its product segments during its fiscal 2023's third quarter (ended July 1). This represents the tech leader's third consecutive quarter of falling revenue as it fights macroeconomic headwinds.
Despite recent hurdles, Apple continues to have a solid long-term outlook. The company has a booming services business that enjoyed an 8% bump in revenue in the latest quarter, and it has leading market shares across its product lineup that will likely pay off once the sector bounces back.
Moreover, easing inflation and technological advances have paved the way for a correction from last year's sell-off, with many analysts calling for a bull market. Apple's stock is up 45% year to date thanks to the recovery. Here are two reasons to buy Apple stock now.
1. The countdown to the next iPhone
Like clockwork, Apple holds a product event every September, where it announces the next iPhone. And 2023 is no different. This year's event is called Wonderlust and will take place on Sept. 12.
According to MacRumors, the new generation of smartphones is expected to use a USB-C charging port rather than Lightning, reducing waste and allowing consumers to interchange chargers with other devices more easily. Meanwhile, the iPhone 15 will likely feature faster modem chips, upgraded cameras, and more.
Revenue in Apple's iPhone segment fell 2% in Q3 2023, which concerned stockholders as it regularly accounts for over 50% of the company's total revenue. However, the quarter saw no new smartphone releases, which likely exacerbated the declines.
Meanwhile, inflation has eased every month since reaching a high of 9% in June 2022. Improvements have led to revenue gains for markets such as e-commerce, with Amazon enjoying massive profit boosts this year. Consumer spending on tech has been slower to recover. However, Apple's dominance in the industry will likely offer significant gains over the long term as the market bounces back.
2. Massive potential over the long term
One of the biggest reasons to invest in Apple is its command of the consumer tech market, which will likely bolster its expansions into high-growth industries, such as artificial intelligence (AI) and virtual/augmented reality (VR/AR). Both sectors are projected to grow at compound annual rates of over 30% through 2030.
Apple has a reputation for entering new markets and quickly stealing market share from the competition. The company has done this in nearly all its product categories, taking existing technology and improving it with custom designs and advanced software. As a result, Apple's debut of its first VR/AR headset, the Vision Pro, this past June should strengthen its long-term prospects.
Companies like Sony and Meta are currently the biggest names in VR. However, the Vision Pro has seemingly made leaps in innovation, potentially making it easier to convince consumers to adopt the technology into their daily lives. The Vision Pro will launch at $3,499, pricing out many consumers. But if Apple uses its tried and true pricing strategy of bringing down the cost with future iterations of the device, the headset could be a massive win over the long term.
Moreover, Apple is slowly expanding its AI offerings. The tech giant has added several AI-enabled features to its product lineup this year. It has also reportedly developed a framework for building large language models, allowing it to create a program similar to ChatGPT that engineers call Apple GPT.
Apple's stock has risen 231% over the last five years, more than Microsoft, Amazon, or Alphabet. With its promising expansions into two lucrative markets, the company's stock looks like an attractive buy into a possible bull market.
10 stocks we like better than Apple
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) shares have slid 4% since the start of August, with investors disappointed by revenue declines in several of its product segments during its fiscal 2023's third quarter (ended July 1). The company has a booming services business that enjoyed an 8% bump in revenue in the latest quarter, and it has leading market shares across its product lineup that will likely pay off once the sector bounces back. Massive potential over the long term One of the biggest reasons to invest in Apple is its command of the consumer tech market, which will likely bolster its expansions into high-growth industries, such as artificial intelligence (AI) and virtual/augmented reality (VR/AR).
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Apple (NASDAQ: AAPL) shares have slid 4% since the start of August, with investors disappointed by revenue declines in several of its product segments during its fiscal 2023's third quarter (ended July 1). However, Apple's dominance in the industry will likely offer significant gains over the long term as the market bounces back. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
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Apple (NASDAQ: AAPL) shares have slid 4% since the start of August, with investors disappointed by revenue declines in several of its product segments during its fiscal 2023's third quarter (ended July 1). Massive potential over the long term One of the biggest reasons to invest in Apple is its command of the consumer tech market, which will likely bolster its expansions into high-growth industries, such as artificial intelligence (AI) and virtual/augmented reality (VR/AR). With its promising expansions into two lucrative markets, the company's stock looks like an attractive buy into a possible bull market.
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Apple (NASDAQ: AAPL) shares have slid 4% since the start of August, with investors disappointed by revenue declines in several of its product segments during its fiscal 2023's third quarter (ended July 1). The company has a booming services business that enjoyed an 8% bump in revenue in the latest quarter, and it has leading market shares across its product lineup that will likely pay off once the sector bounces back. That's right -- they think these 10 stocks are even better buys.
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13998.0
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2023-09-05 00:00:00 UTC
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US STOCKS-Wall St eyes lower open as yields rise, China data weighs
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-lower-open-as-yields-rise-china-data-weighs
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nan
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nan
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By Shristi Achar A and Amruta Khandekar
Sept 5 (Reuters) - Wall Street's main indexes were poised for a lower open on Tuesday as higher Treasury yields weighed on major growth stocks, while downbeat data on services activity in China stoked worries over demand in the world's second largest economy.
Yield on the 10-year Treasury notes US10YT=RR climbed to 4.23%, while two-year yield rose to 4.93%, ahead of more economic data and the U.S. Federal Reserve's policy meeting later this month.
Major technology-linked stocks such as Apple AAPL.O, Nvidia NVDA.O, Meta Platforms META.O and Netflix NFLX.O lost between 0.4% and 1.0% before the bell.
"Investors are grappling with what we consider to be a still relatively weak economic and profit environment for the average corporation," said Jason Pride, chief of investment strategy and research at Glenmede.
"The recession is definitely delayed within the United States ... we are seeing fairly weak economic environments in both China and Europe."
China's services activity expanded at the slowest pace in eight months in August, a private-sector survey showed, as weak demand continued to dog the world's second-largest economy and stimulus failed to meaningfully revive consumption.
U.S.-listed shares of Chinese companies including PDD Holdings PDD.O, JD.com JD.O, Baidu BIDU.O and Alibaba BABA.N fell between 0.7% and 1.5%.
U.S. economic data since the Fed's July meeting has added to the impression the economy is cooling without cracking, likely bolstering the case against further interest rate increases.
All three main U.S. stock indexes logged gains in the previous week after a raft of data pointed to a softening labor market. Investor focus will now shift to the consumer price index data due next week and the Fed's policy decision due on Sept. 20.
Traders' bets that the Fed will leave rates unchanged in the next policy meeting stood at 93%, while pricing in a 58.2% chance of a pause in November, up from 52% a week earlier, according to the CME FedWatch tool.
Meanwhile, Goldman Sachs GS.Nlowered the chances of a U.S recession in the next 12 months to 15% from 20% amid continued easing inflation and labor market data.
Investors now await factory orders data for July due at 10 a.m. ET.
At 8:28 a.m. ET, Dow e-minis 1YMcv1 were down 46 points, or 0.13%, S&P 500 e-minis EScv1 were down 11.5 points, or 0.25%, and Nasdaq 100 e-minis NQcv1 were down 63.5 points, or 0.41%.
Shares of Airbnb ABNB.O and Blackstone BX.N added 5.8%and 3.8%, respectively, in premarket trading as the companies were set to join the S&P 500 index.
Oracle ORCL.N gained 1.9% after Barclays upgraded the software firm to "overweight" from "equal weight".
Warner Bros DiscoveryWBD.O slipped 0.8% after the media company lowered its annual core profit forecast due to the strikes by Hollywood writers and actors.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Arun Koyyur and Shounak Dasgupta)
((Shristi.AcharA@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Major technology-linked stocks such as Apple AAPL.O, Nvidia NVDA.O, Meta Platforms META.O and Netflix NFLX.O lost between 0.4% and 1.0% before the bell. By Shristi Achar A and Amruta Khandekar Sept 5 (Reuters) - Wall Street's main indexes were poised for a lower open on Tuesday as higher Treasury yields weighed on major growth stocks, while downbeat data on services activity in China stoked worries over demand in the world's second largest economy. China's services activity expanded at the slowest pace in eight months in August, a private-sector survey showed, as weak demand continued to dog the world's second-largest economy and stimulus failed to meaningfully revive consumption.
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Major technology-linked stocks such as Apple AAPL.O, Nvidia NVDA.O, Meta Platforms META.O and Netflix NFLX.O lost between 0.4% and 1.0% before the bell. By Shristi Achar A and Amruta Khandekar Sept 5 (Reuters) - Wall Street's main indexes were poised for a lower open on Tuesday as higher Treasury yields weighed on major growth stocks, while downbeat data on services activity in China stoked worries over demand in the world's second largest economy. U.S. economic data since the Fed's July meeting has added to the impression the economy is cooling without cracking, likely bolstering the case against further interest rate increases.
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Major technology-linked stocks such as Apple AAPL.O, Nvidia NVDA.O, Meta Platforms META.O and Netflix NFLX.O lost between 0.4% and 1.0% before the bell. By Shristi Achar A and Amruta Khandekar Sept 5 (Reuters) - Wall Street's main indexes were poised for a lower open on Tuesday as higher Treasury yields weighed on major growth stocks, while downbeat data on services activity in China stoked worries over demand in the world's second largest economy. All three main U.S. stock indexes logged gains in the previous week after a raft of data pointed to a softening labor market.
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Major technology-linked stocks such as Apple AAPL.O, Nvidia NVDA.O, Meta Platforms META.O and Netflix NFLX.O lost between 0.4% and 1.0% before the bell. By Shristi Achar A and Amruta Khandekar Sept 5 (Reuters) - Wall Street's main indexes were poised for a lower open on Tuesday as higher Treasury yields weighed on major growth stocks, while downbeat data on services activity in China stoked worries over demand in the world's second largest economy. All three main U.S. stock indexes logged gains in the previous week after a raft of data pointed to a softening labor market.
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13999.0
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2023-09-05 00:00:00 UTC
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US STOCKS-Futures fall as rising yield, China services activity data weigh
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-fall-as-rising-yield-china-services-activity-data-weigh
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nan
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nan
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By Shristi Achar A and Amruta Khandekar
Sept 5 (Reuters) - U.S. stock index futures fell on Tuesday as higher Treasury yields weighed on major growth stocks, while downbeat data on services activity in China stoked worries over demand in the world's second largest economy.
Yield on the 10-year Treasury notes US10YT=RR climbed to 4.21% ahead of more economic data and the U.S. Federal Reserve's policy meeting later this month.
Major technology-linked stocks such as Apple AAPL.O, Nvidia NVDA.O, Meta Platforms META.O and Netflix NFLX.O lost between 0.5% and 1.0% before the bell.
With September trading kicking into full gear, a cautious trading session is likely with yields pressuring stocks, according to Peter Cardillo, chief market economist at Spartan Capital Securities.
China's services activity expanded at the slowest pace in eight months in August, a private-sector survey showed, as weak demand continued to dog the world's second-largest economy and stimulus failed to meaningfully revive consumption.
U.S.-listed shares of Chinese companies including PDD Holdings PDD.O, JD.com JD.O, Baidu BIDU.O and Alibaba BABA.N fell between 0.9% and 1.6%.
U.S. economic data since the Fed's July meeting has added to the impression the economy is cooling without cracking, likely bolstering the case against further interest rate increases.
All three main U.S. stock indexes logged gains in the previous week after a raft of data pointed to a softening labor market.
Traders' bets that the Fed will leave rates unchanged in the next policy meeting stood at 93%, while pricing in a near 59% chance of a pause in November, up from 52% a week ago, according to the CME FedWatch tool.
Meanwhile, Goldman Sachs GS.Nlowered the chances of a U.S recession in the next 12 months to 15% from 20% amid continued easing inflation and labor market data.
Investors now await factory orders data for July due at 10 a.m. ET.
At 7:10 a.m. ET, Dow e-minis 1YMcv1 were down 31 points, or 0.09%, S&P 500 e-minis EScv1 were down 9.75 points, or 0.22%, and Nasdaq 100 e-minis NQcv1 were down 61 points, or 0.39%.
Shares of Airbnb ABNB.O and Blackstone BX.N added 5.8% and 4.2%, respectively, in premarket trading as the companies were set to join the S&P 500 index.
Oracle ORCL.O gained 1.5% after Barclays upgraded the software firm to "overweight" from "equal weight".
Next week, focus will be on the consumer price index data, which could offer clues on inflationary pressures in August. The Fed's next policy meeting is on Sept. 20.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Arun Koyyur and Shounak Dasgupta)
((Shristi.AcharA@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Major technology-linked stocks such as Apple AAPL.O, Nvidia NVDA.O, Meta Platforms META.O and Netflix NFLX.O lost between 0.5% and 1.0% before the bell. China's services activity expanded at the slowest pace in eight months in August, a private-sector survey showed, as weak demand continued to dog the world's second-largest economy and stimulus failed to meaningfully revive consumption. U.S. economic data since the Fed's July meeting has added to the impression the economy is cooling without cracking, likely bolstering the case against further interest rate increases.
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Major technology-linked stocks such as Apple AAPL.O, Nvidia NVDA.O, Meta Platforms META.O and Netflix NFLX.O lost between 0.5% and 1.0% before the bell. By Shristi Achar A and Amruta Khandekar Sept 5 (Reuters) - U.S. stock index futures fell on Tuesday as higher Treasury yields weighed on major growth stocks, while downbeat data on services activity in China stoked worries over demand in the world's second largest economy. With September trading kicking into full gear, a cautious trading session is likely with yields pressuring stocks, according to Peter Cardillo, chief market economist at Spartan Capital Securities.
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Major technology-linked stocks such as Apple AAPL.O, Nvidia NVDA.O, Meta Platforms META.O and Netflix NFLX.O lost between 0.5% and 1.0% before the bell. By Shristi Achar A and Amruta Khandekar Sept 5 (Reuters) - U.S. stock index futures fell on Tuesday as higher Treasury yields weighed on major growth stocks, while downbeat data on services activity in China stoked worries over demand in the world's second largest economy. U.S. economic data since the Fed's July meeting has added to the impression the economy is cooling without cracking, likely bolstering the case against further interest rate increases.
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Major technology-linked stocks such as Apple AAPL.O, Nvidia NVDA.O, Meta Platforms META.O and Netflix NFLX.O lost between 0.5% and 1.0% before the bell. By Shristi Achar A and Amruta Khandekar Sept 5 (Reuters) - U.S. stock index futures fell on Tuesday as higher Treasury yields weighed on major growth stocks, while downbeat data on services activity in China stoked worries over demand in the world's second largest economy. U.S. economic data since the Fed's July meeting has added to the impression the economy is cooling without cracking, likely bolstering the case against further interest rate increases.
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