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19000.0
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2022-10-06 00:00:00 UTC
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EXCLUSIVE-Apple wins 2/3 cut in French antitrust fine to 372 mln euros - sources
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AAPL
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https://www.nasdaq.com/articles/exclusive-apple-wins-2-3-cut-in-french-antitrust-fine-to-372-mln-euros-sources
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nan
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nan
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By Mathieu Rosemain
PARIS, Oct 6 (Reuters) - A French court on Thursday substantially lowered a fine against iPhone maker Apple IncAAPL.O for alleged anti-competitive behaviour to 372 million euros ($366.31 million) from 1.1 billion euros previously, two sources with knowledge of the matter told Reuters.
The original fine had been imposed by France's antitrust watchdog in 2020 for what it described as Apple's anti-competitive behaviour towards its distribution and retail network.
At the time, it was the biggest fine levied by the antitrust regulator, which said Apple imposed prices on retail premium resellers so that the prices were aligned with those charged by the California firm in its own shops, or on the internet.
The appeals court backed the antitrust watchdog's charge that Apple abused the retailers' economic dependency on the company but tossed the fixed-pricing charge, one of the two sources said.
It also reduced the time scope of the charge of an alleged restriction of the wholesalers' clientele, the same source said.
The court also decided to significantly lower the rate applied to calculate the overall fine, the source added.
The French antitrust authority had used a high rate in 2020 given the size and financial firepower of Apple, the source said.
Apple said it would appeal the decision. It did not mention the amount of the fine issued by the court.
"While the court correctly reversed part of the French Competition Authority's decision, we believe it should be overturned in full and plan to appeal," the U.S. company said in a statement sent to Reuters.
"The decision relates to practices from more than a decade ago that even the (French authority) recognised are no longer in use."
A spokesperson for the appeals court declined to comment on the exact content of the decision but confirmed the court "partially confirmed" the antitrust watchdog's decision.
($1 = 1.0155 euros)
(Reporting by Mathieu Rosemain; Editing by Benoit Van Overstraeten and Silvia Aloisi; Additional reporting by Foo Yun Chee; Editing by Richard Chang)
((tassilo.hummel@thomsonreuters.com ; Twitter handle: @tassilo_hummel;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Mathieu Rosemain PARIS, Oct 6 (Reuters) - A French court on Thursday substantially lowered a fine against iPhone maker Apple IncAAPL.O for alleged anti-competitive behaviour to 372 million euros ($366.31 million) from 1.1 billion euros previously, two sources with knowledge of the matter told Reuters. The original fine had been imposed by France's antitrust watchdog in 2020 for what it described as Apple's anti-competitive behaviour towards its distribution and retail network. "While the court correctly reversed part of the French Competition Authority's decision, we believe it should be overturned in full and plan to appeal," the U.S. company said in a statement sent to Reuters.
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By Mathieu Rosemain PARIS, Oct 6 (Reuters) - A French court on Thursday substantially lowered a fine against iPhone maker Apple IncAAPL.O for alleged anti-competitive behaviour to 372 million euros ($366.31 million) from 1.1 billion euros previously, two sources with knowledge of the matter told Reuters. A spokesperson for the appeals court declined to comment on the exact content of the decision but confirmed the court "partially confirmed" the antitrust watchdog's decision. ($1 = 1.0155 euros) (Reporting by Mathieu Rosemain; Editing by Benoit Van Overstraeten and Silvia Aloisi; Additional reporting by Foo Yun Chee; Editing by Richard Chang) ((tassilo.hummel@thomsonreuters.com ; Twitter handle: @tassilo_hummel;)) 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 Mathieu Rosemain PARIS, Oct 6 (Reuters) - A French court on Thursday substantially lowered a fine against iPhone maker Apple IncAAPL.O for alleged anti-competitive behaviour to 372 million euros ($366.31 million) from 1.1 billion euros previously, two sources with knowledge of the matter told Reuters. The appeals court backed the antitrust watchdog's charge that Apple abused the retailers' economic dependency on the company but tossed the fixed-pricing charge, one of the two sources said. A spokesperson for the appeals court declined to comment on the exact content of the decision but confirmed the court "partially confirmed" the antitrust watchdog's decision.
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By Mathieu Rosemain PARIS, Oct 6 (Reuters) - A French court on Thursday substantially lowered a fine against iPhone maker Apple IncAAPL.O for alleged anti-competitive behaviour to 372 million euros ($366.31 million) from 1.1 billion euros previously, two sources with knowledge of the matter told Reuters. The original fine had been imposed by France's antitrust watchdog in 2020 for what it described as Apple's anti-competitive behaviour towards its distribution and retail network. The appeals court backed the antitrust watchdog's charge that Apple abused the retailers' economic dependency on the company but tossed the fixed-pricing charge, one of the two sources said.
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19001.0
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2022-10-06 00:00:00 UTC
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Noteworthy Thursday Option Activity: AAPL, NOW, BA
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AAPL
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-aapl-now-ba
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 728,532 contracts have traded so far, representing approximately 72.9 million underlying shares. That amounts to about 70.9% of AAPL's average daily trading volume over the past month of 102.7 million shares. Especially high volume was seen for the $155 strike call option expiring November 18, 2022, with 43,591 contracts trading so far today, representing approximately 4.4 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $155 strike highlighted in orange:
ServiceNow Inc (Symbol: NOW) saw options trading volume of 11,199 contracts, representing approximately 1.1 million underlying shares or approximately 63.1% of NOW's average daily trading volume over the past month, of 1.8 million shares. Especially high volume was seen for the $440 strike call option expiring November 11, 2022, with 1,813 contracts trading so far today, representing approximately 181,300 underlying shares of NOW. Below is a chart showing NOW's trailing twelve month trading history, with the $440 strike highlighted in orange:
And Boeing Co. (Symbol: BA) saw options trading volume of 45,700 contracts, representing approximately 4.6 million underlying shares or approximately 61.1% of BA's average daily trading volume over the past month, of 7.5 million shares. Especially high volume was seen for the $200 strike put option expiring January 20, 2023, with 5,956 contracts trading so far today, representing approximately 595,600 underlying shares of BA. Below is a chart showing BA's trailing twelve month trading history, with the $200 strike highlighted in orange:
For the various different available expirations for AAPL options, NOW options, or BA options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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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Especially high volume was seen for the $155 strike call option expiring November 18, 2022, with 43,591 contracts trading so far today, representing approximately 4.4 million underlying shares of AAPL. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 728,532 contracts have traded so far, representing approximately 72.9 million underlying shares. That amounts to about 70.9% of AAPL's average daily trading volume over the past month of 102.7 million shares.
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Especially high volume was seen for the $155 strike call option expiring November 18, 2022, with 43,591 contracts trading so far today, representing approximately 4.4 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $155 strike highlighted in orange: ServiceNow Inc (Symbol: NOW) saw options trading volume of 11,199 contracts, representing approximately 1.1 million underlying shares or approximately 63.1% of NOW's average daily trading volume over the past month, of 1.8 million shares. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 728,532 contracts have traded so far, representing approximately 72.9 million underlying shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 728,532 contracts have traded so far, representing approximately 72.9 million underlying shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $155 strike highlighted in orange: ServiceNow Inc (Symbol: NOW) saw options trading volume of 11,199 contracts, representing approximately 1.1 million underlying shares or approximately 63.1% of NOW's average daily trading volume over the past month, of 1.8 million shares. That amounts to about 70.9% of AAPL's average daily trading volume over the past month of 102.7 million shares.
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Especially high volume was seen for the $155 strike call option expiring November 18, 2022, with 43,591 contracts trading so far today, representing approximately 4.4 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $155 strike highlighted in orange: ServiceNow Inc (Symbol: NOW) saw options trading volume of 11,199 contracts, representing approximately 1.1 million underlying shares or approximately 63.1% of NOW's average daily trading volume over the past month, of 1.8 million shares. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 728,532 contracts have traded so far, representing approximately 72.9 million underlying shares.
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19002.0
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2022-10-06 00:00:00 UTC
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EXCLUSIVE-French court cuts antitrust fine against Apple to 372 mln euros from 1.1 bln- source
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AAPL
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https://www.nasdaq.com/articles/exclusive-french-court-cuts-antitrust-fine-against-apple-to-372-mln-euros-from-1.1-bln
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nan
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nan
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By Mathieu Rosemain
PARIS, Oct 6 (Reuters) - A French court on Thursday substantially lowered a fine against iPhone maker Apple AAPL.Ofor alleged anti-competitive behaviour to 372 million euros ($366.31 million) from 1.1 billion euros previously, a source with knowledge of the matter told Reuters.
The original fine had been imposed by France's antitrust watchdog in 2020 for what it described as Apple's anti-competitive behaviour towards its distribution and retail network.
At the time, it was the biggest fine levied by the antitrust regulator, which said Apple imposed prices on retail premium resellers so that the prices were aligned with those charged by the California firm in its own shops, or on the Internet.
The Paris appeals court lowered the fine because it decided to drop one of the three main charges, related to allegations of price-fixing, the source said. The court also decided to significantly lower the rate applied to calculate the overall fine, the source added.
The French antitrust authority had used a high rate in 2020 given the size and financial firepower of Apple, the source said.
Apple, which appealed against the original fine, could not immediately be reached for comment on Thursday.
($1 = 1.0155 euros)
(Reporting by Mathieu Rosemain; Editing by Benoit Van Overstraeten and Silvia Aloisi)
((tassilo.hummel@thomsonreuters.com ; Twitter handle: @tassilo_hummel;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
By Mathieu Rosemain PARIS, Oct 6 (Reuters) - A French court on Thursday substantially lowered a fine against iPhone maker Apple AAPL.Ofor alleged anti-competitive behaviour to 372 million euros ($366.31 million) from 1.1 billion euros previously, a source with knowledge of the matter told Reuters. The original fine had been imposed by France's antitrust watchdog in 2020 for what it described as Apple's anti-competitive behaviour towards its distribution and retail network. The Paris appeals court lowered the fine because it decided to drop one of the three main charges, related to allegations of price-fixing, the source said.
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By Mathieu Rosemain PARIS, Oct 6 (Reuters) - A French court on Thursday substantially lowered a fine against iPhone maker Apple AAPL.Ofor alleged anti-competitive behaviour to 372 million euros ($366.31 million) from 1.1 billion euros previously, a source with knowledge of the matter told Reuters. The original fine had been imposed by France's antitrust watchdog in 2020 for what it described as Apple's anti-competitive behaviour towards its distribution and retail network. The Paris appeals court lowered the fine because it decided to drop one of the three main charges, related to allegations of price-fixing, the source said.
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By Mathieu Rosemain PARIS, Oct 6 (Reuters) - A French court on Thursday substantially lowered a fine against iPhone maker Apple AAPL.Ofor alleged anti-competitive behaviour to 372 million euros ($366.31 million) from 1.1 billion euros previously, a source with knowledge of the matter told Reuters. At the time, it was the biggest fine levied by the antitrust regulator, which said Apple imposed prices on retail premium resellers so that the prices were aligned with those charged by the California firm in its own shops, or on the Internet. The Paris appeals court lowered the fine because it decided to drop one of the three main charges, related to allegations of price-fixing, the source said.
|
By Mathieu Rosemain PARIS, Oct 6 (Reuters) - A French court on Thursday substantially lowered a fine against iPhone maker Apple AAPL.Ofor alleged anti-competitive behaviour to 372 million euros ($366.31 million) from 1.1 billion euros previously, a source with knowledge of the matter told Reuters. The original fine had been imposed by France's antitrust watchdog in 2020 for what it described as Apple's anti-competitive behaviour towards its distribution and retail network. The Paris appeals court lowered the fine because it decided to drop one of the three main charges, related to allegations of price-fixing, the source said.
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19003.0
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2022-10-06 00:00:00 UTC
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A French court divides by three an antitrust fine against Apple - source
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AAPL
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https://www.nasdaq.com/articles/a-french-court-divides-by-three-an-antitrust-fine-against-apple-source
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nan
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nan
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Repeats to move extraenous word in first paragraph
PARIS, Oct 6 (Reuters) - A French court on Thursday divided by three, to 372 million euros ($366.31 million), a fine against iPhone maker Apple AAPL.O linked to practices the antitrust watchdog had described as anti-competitive behaviour towards its distribution and retail network, a source said.
The fine, that was initially set at 1.1 billion euros, dates back to 2020 when the French regulator said Apple imposed prices on retail premium resellers so that the prices were aligned with those charged by the California firm in its own shops, or on the Internet.
($1 = 1.0155 euros)
(Reporting by Mathieu Rosemain; Writing by Tassilo Hummel; Editing by Benoit Van Overstraeten)
((tassilo.hummel@thomsonreuters.com ; Twitter handle: @tassilo_hummel;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Repeats to move extraenous word in first paragraph PARIS, Oct 6 (Reuters) - A French court on Thursday divided by three, to 372 million euros ($366.31 million), a fine against iPhone maker Apple AAPL.O linked to practices the antitrust watchdog had described as anti-competitive behaviour towards its distribution and retail network, a source said. The fine, that was initially set at 1.1 billion euros, dates back to 2020 when the French regulator said Apple imposed prices on retail premium resellers so that the prices were aligned with those charged by the California firm in its own shops, or on the Internet. ($1 = 1.0155 euros) (Reporting by Mathieu Rosemain; Writing by Tassilo Hummel; Editing by Benoit Van Overstraeten) ((tassilo.hummel@thomsonreuters.com ; Twitter handle: @tassilo_hummel;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Repeats to move extraenous word in first paragraph PARIS, Oct 6 (Reuters) - A French court on Thursday divided by three, to 372 million euros ($366.31 million), a fine against iPhone maker Apple AAPL.O linked to practices the antitrust watchdog had described as anti-competitive behaviour towards its distribution and retail network, a source said. The fine, that was initially set at 1.1 billion euros, dates back to 2020 when the French regulator said Apple imposed prices on retail premium resellers so that the prices were aligned with those charged by the California firm in its own shops, or on the Internet. ($1 = 1.0155 euros) (Reporting by Mathieu Rosemain; Writing by Tassilo Hummel; Editing by Benoit Van Overstraeten) ((tassilo.hummel@thomsonreuters.com ; Twitter handle: @tassilo_hummel;)) 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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Repeats to move extraenous word in first paragraph PARIS, Oct 6 (Reuters) - A French court on Thursday divided by three, to 372 million euros ($366.31 million), a fine against iPhone maker Apple AAPL.O linked to practices the antitrust watchdog had described as anti-competitive behaviour towards its distribution and retail network, a source said. The fine, that was initially set at 1.1 billion euros, dates back to 2020 when the French regulator said Apple imposed prices on retail premium resellers so that the prices were aligned with those charged by the California firm in its own shops, or on the Internet. ($1 = 1.0155 euros) (Reporting by Mathieu Rosemain; Writing by Tassilo Hummel; Editing by Benoit Van Overstraeten) ((tassilo.hummel@thomsonreuters.com ; Twitter handle: @tassilo_hummel;)) 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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Repeats to move extraenous word in first paragraph PARIS, Oct 6 (Reuters) - A French court on Thursday divided by three, to 372 million euros ($366.31 million), a fine against iPhone maker Apple AAPL.O linked to practices the antitrust watchdog had described as anti-competitive behaviour towards its distribution and retail network, a source said. The fine, that was initially set at 1.1 billion euros, dates back to 2020 when the French regulator said Apple imposed prices on retail premium resellers so that the prices were aligned with those charged by the California firm in its own shops, or on the Internet. ($1 = 1.0155 euros) (Reporting by Mathieu Rosemain; Writing by Tassilo Hummel; Editing by Benoit Van Overstraeten) ((tassilo.hummel@thomsonreuters.com ; Twitter handle: @tassilo_hummel;)) 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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19004.0
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2022-10-06 00:00:00 UTC
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US STOCKS-Futures pare losses as jobless claims data calms rate-hike fears
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AAPL
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https://www.nasdaq.com/articles/us-stocks-futures-pare-losses-as-jobless-claims-data-calms-rate-hike-fears
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nan
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nan
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By Ankika Biswas
Oct 6 (Reuters) - U.S. stock indexes futures pared losses on Thursday, with Nasdaq futures briefly turning positive after data showing an increase in weekly jobless claims suggested the Federal Reserve may need to ease its aggressive monetary tightening cycle.
The number of Americans filing new claims for unemployment benefits rose more than expected last week, but the labor market remains tight even as demand for labor is cooling amid higher interest rates.
The benchmark 10-year Treasury yield moved lower following the report, supporting rate-sensitive growth stocks including Apple Inc AAPL.O and Amazon.com Inc AMZN.O. US/
Tesla Inc TSLA.O slipped 0.5% as Apollo Global Management Inc APO.N and Sixth Street Partners, which had been looking to provide financing for Musk's $44 billion Twitter deal, are no longer in talks with the billionaire.
Meanwhile, oil prices held near three-week highs after the OPEC+ group of nations' largest supply cut since 2020 ahead of European Union embargoes on Russian energy is set to tighten global oil supply.
"There's no question that the reduction in output from OPEC+ is putting some upward pressure on oil prices and on prices at the pump, and that's very troubling," said Hugh Johnson, chief economist at Hugh Johnson Economics in Albany, New York.
Data on Wednesday showed increased monthly hiring by private employers in America and a rise in ISM's services industry employment gauge, suggesting the Fed will keep interest rates higher for longer.
Monthly non-farm payrolls and unemployment rate data, due on Friday, will be at the top of investors' radar to assess the quantum of the Fed's future rate hikes.
"Everybody's waiting for the employment report that will give us a little bit idea as to how the economy is doing," Johnson said.
Money markets are pricing in a nearly 80% chance of a fourth straight 75-basis-point rate hike at the upcoming Fed meet on November 1-2. FEDWATCH
After Fed's San Francisco President Mary Daly on Wednesday underscored the central bank's commitment to curb inflation with more interest rate hikes, other officials including Cleveland President Loretta Mester, Fed Board Governor Lisa Cook, Board Governor Christopher Waller and Chicago President Charles Evans will be on the watch-list.
Growing fears of a looming recession in corporate leadership is expected to weigh on capital spending and job openings, Goldman Sachs said in a note.
At 8:54 a.m. ET, Dow e-minis 1YMcv1 were down 66 points, or 0.22%, S&P 500 e-minis EScv1 were down 8.75 points, or 0.23%, and Nasdaq 100 e-minis NQcv1 were down 11.75 points, or 0.1%.
(Reporting by Ankika Biswas in Bengaluru)
((Ankika.Biswas@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.
|
The benchmark 10-year Treasury yield moved lower following the report, supporting rate-sensitive growth stocks including Apple Inc AAPL.O and Amazon.com Inc AMZN.O. US/ Tesla Inc TSLA.O slipped 0.5% as Apollo Global Management Inc APO.N and Sixth Street Partners, which had been looking to provide financing for Musk's $44 billion Twitter deal, are no longer in talks with the billionaire. Growing fears of a looming recession in corporate leadership is expected to weigh on capital spending and job openings, Goldman Sachs said in a note.
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The benchmark 10-year Treasury yield moved lower following the report, supporting rate-sensitive growth stocks including Apple Inc AAPL.O and Amazon.com Inc AMZN.O. By Ankika Biswas Oct 6 (Reuters) - U.S. stock indexes futures pared losses on Thursday, with Nasdaq futures briefly turning positive after data showing an increase in weekly jobless claims suggested the Federal Reserve may need to ease its aggressive monetary tightening cycle. Data on Wednesday showed increased monthly hiring by private employers in America and a rise in ISM's services industry employment gauge, suggesting the Fed will keep interest rates higher for longer.
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The benchmark 10-year Treasury yield moved lower following the report, supporting rate-sensitive growth stocks including Apple Inc AAPL.O and Amazon.com Inc AMZN.O. By Ankika Biswas Oct 6 (Reuters) - U.S. stock indexes futures pared losses on Thursday, with Nasdaq futures briefly turning positive after data showing an increase in weekly jobless claims suggested the Federal Reserve may need to ease its aggressive monetary tightening cycle. Data on Wednesday showed increased monthly hiring by private employers in America and a rise in ISM's services industry employment gauge, suggesting the Fed will keep interest rates higher for longer.
|
The benchmark 10-year Treasury yield moved lower following the report, supporting rate-sensitive growth stocks including Apple Inc AAPL.O and Amazon.com Inc AMZN.O. Data on Wednesday showed increased monthly hiring by private employers in America and a rise in ISM's services industry employment gauge, suggesting the Fed will keep interest rates higher for longer. Monthly non-farm payrolls and unemployment rate data, due on Friday, will be at the top of investors' radar to assess the quantum of the Fed's future rate hikes.
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19005.0
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2022-10-06 00:00:00 UTC
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2 No-Brainer Dividend Stocks to Invest $1,000 in Right Now
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AAPL
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https://www.nasdaq.com/articles/2-no-brainer-dividend-stocks-to-invest-%241000-in-right-now
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nan
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nan
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I don't know about you, but during turbulent market times, dividend stocks are at the top of my buy list. That's not to say that dividend-paying stocks don't experience volatility along with the rest of the market, but companies with a solid history of not only distributing but also increasing their dividends, in both bull and bear markets, are particularly intriguing buys to increase overall returns and generate more capital.
On that note, if you have $1,000 to invest -- and you don't need it for any near-term bills, to build up your emergency fund, or to pay off high-interest debt -- you could split it to invest in several shares of these two powerhouse dividend stocks.
1. Apple: A tech behemoth that keeps on growing
Apple's (NASDAQ: AAPL) 0.7% dividend yield doesn't look all that tempting, but it's easy to see why this stock is a go-to for many investors. Not only has Apple generated a total return of 180% for investors over the past three years (compared to the S&P 500's total return of 32%), but it's also increased its dividend by nearly 20% during that period.
Shares of Apple have taken a beating recently following a report from Bloomberg that the tech giant is scaling back iPhone 14 production, and a subsequent downgrade of the stock from a Bank of America analyst. Even so, a more objective look at the situation reveals that the reaction investors have had may be an overreaction.
It's reasonable to expect that in the current macroeconomic environment, consumer spending -- particularly on discretionary items -- will see some decisive pullback. It would be naive to think that even Apple could be completely immune to fluctuations in consumer spending.
Over the long term, Apple's diverse and profitable business structure, not to mention its huge, loyal customer base should continue to drive enviable growth for both its balance sheet and its long-term investors. In January, Apple said it had an installed base of 1.8 billion devices. On the latest quarterly conference call with analysts, Apple executives did not give a number but noted "an all-time record for our installed base of active devices."
According to a recent report by Counterpoint Research, Apple controls 57% of the global premium smartphone market. Even with the economic weakness we're seeing right now, Apple still reported record revenue in the most recent quarter, and that record number of installed devices.
In the first nine months of 2022, Apple's net sales rose 7.7% year over year, while net income increased 6.7%. Not only that, but of all its business segments, the iPhone and services (including Apple TV+ and Apple Music) categories generated the highest sales -- $162.9 billion and $58.9 billion, respectively, -- in the nine-month period.
While Apple's dividend yield may not be nearly as high as those of other staunch dividend payers, the company's commitment to maintaining and regularly increasing its payout -- which it has by more than 140% over the last decade -- is attractive for income investors. That, coupled with its diverse business that for more than four decades has remained on the cutting edge of tech innovation help make a long-term investment in this compelling business worth considering.
Apple trades for about $140 per share, so a $500 investment would get you about 3.5 shares.
2. Realty Income: A monthly dividend payer
Another fantastic dividend-paying investment, Realty Income (NYSE: O) is a real estate investment trust (REIT) with an impressive portfolio of single-tenant properties distributed across North America and Europe. Currently, Realty Income generates an annual yield of a mighty 5.1% for investors.
Like other REITs, Realty Income's structure requires it to pay out no less than 90% of its taxable earnings as shareholder dividends. Founded in 1969, Realty Income has a dividend history so impressive that the company is one of the Dividend Aristocrats, having not only maintained but increased its dividend every year for 28 years and counting.
Realty Income is one of a handful of dividend stocks that pays its dividend out monthly, rather than quarterly. And since becoming a publicly traded company 28 years ago, it has boosted its dividend 117 times in total.
The REIT leases its portfolio of more than 11,000 commercial properties to over 1,100 clients in dozens of industries, including grocery stores, convenience stores, drug stores, and restaurants. Its tenants include the likes of Walgreens Boots Alliance, FedEx, Dollar General, and 7-Eleven. While tenants in certain industries like restaurants may be more vulnerable in the event of a recession, the industries from which Realty Income garners its highest concentration of rent are grocery stores, convenience stores, and dollar stores, which remain go-to locations for consumers, even when spending is down.
In the most recent quarter, Realty Income's revenue, net income, and adjusted funds from operations (FFO), the most useful metric to evaluate a REIT's profitability, rose by 75%, 79%, and 78% respectively, on a year-over-year basis. Looking back over the past decade, Realty Income's annual revenue and FFO have increased by 329% and 344%.
If you're searching for a reliable dividend stock to buy and hold for many, many years, few can compete with the consistency and stability that Realty Income offers. Realty Income trades for about $60 per share, so $500 would get you about eight shares.
10 stocks we like better than Apple
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Rachel Warren has positions in Apple. The Motley Fool has positions in and recommends Apple and FedEx. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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Apple: A tech behemoth that keeps on growing Apple's (NASDAQ: AAPL) 0.7% dividend yield doesn't look all that tempting, but it's easy to see why this stock is a go-to for many investors. Shares of Apple have taken a beating recently following a report from Bloomberg that the tech giant is scaling back iPhone 14 production, and a subsequent downgrade of the stock from a Bank of America analyst. Over the long term, Apple's diverse and profitable business structure, not to mention its huge, loyal customer base should continue to drive enviable growth for both its balance sheet and its long-term investors.
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Apple: A tech behemoth that keeps on growing Apple's (NASDAQ: AAPL) 0.7% dividend yield doesn't look all that tempting, but it's easy to see why this stock is a go-to for many investors. In the first nine months of 2022, Apple's net sales rose 7.7% year over year, while net income increased 6.7%. Realty Income: A monthly dividend payer Another fantastic dividend-paying investment, Realty Income (NYSE: O) is a real estate investment trust (REIT) with an impressive portfolio of single-tenant properties distributed across North America and Europe.
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Apple: A tech behemoth that keeps on growing Apple's (NASDAQ: AAPL) 0.7% dividend yield doesn't look all that tempting, but it's easy to see why this stock is a go-to for many investors. While Apple's dividend yield may not be nearly as high as those of other staunch dividend payers, the company's commitment to maintaining and regularly increasing its payout -- which it has by more than 140% over the last decade -- is attractive for income investors. Founded in 1969, Realty Income has a dividend history so impressive that the company is one of the Dividend Aristocrats, having not only maintained but increased its dividend every year for 28 years and counting.
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Apple: A tech behemoth that keeps on growing Apple's (NASDAQ: AAPL) 0.7% dividend yield doesn't look all that tempting, but it's easy to see why this stock is a go-to for many investors. Not only has Apple generated a total return of 180% for investors over the past three years (compared to the S&P 500's total return of 32%), but it's also increased its dividend by nearly 20% during that period. Realty Income is one of a handful of dividend stocks that pays its dividend out monthly, rather than quarterly.
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19006.0
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2022-10-06 00:00:00 UTC
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1 Monster Opportunity in the Global Chip Shortage
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AAPL
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https://www.nasdaq.com/articles/1-monster-opportunity-in-the-global-chip-shortage-8
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The semiconductor industry is facing a challenging time in 2022, as a slump in demand for smartphones and personal computers led to a sharp decline in the sales of some major chipmakers.
The likes of Nvidia and Micron Technology, which were once flying high thanks to the healthy demand for graphics cards and memory chips, are now in bad shape. On the other hand, reports that Apple has been forced to pull back the production of the iPhone 14 line-up on account of tepid demand have weighed on the company's chip suppliers.
However, there's one industry where chip demand continues to remain robust: automotive. Several automakers have pointed out of late that the chip crunch in the industry is here to stay. Volkswagen, for instance, estimates that the auto industry could continue witnessing a chip crunch into 2023 and beyond. Stellantis also holds a similar view, while General Motors CEO Mary Barra also pointed out that the automotive industry could continue grappling with a chip shortage beyond next year.
The shortage of chips in the auto industry isn't surprising, as the semiconductor content per vehicle increased remarkably thanks to the adoption of connected cars, autonomous driving, electrification, etc. By 2026, the semiconductor content per vehicle is expected to exceed $1,000, which would be double 2020 levels. Not surprisingly, the automotive semiconductor market is expected to clock annual growth of 16% through 2027.
Investors can take advantage of this lucrative opportunity with the help of NXP Semiconductors (NASDAQ: NXPI), a Dutch company that has solid exposure to the auto market.
The automotive market is driving tremendous growth at NXP Semiconductors
NXP Semiconductors gets half of its revenue from selling chips used in automotive applications. In the second quarter of 2022, the company's automotive revenue shot up 36% year-over-year to $1.7 billion. For comparison, NXP's total revenue was up 28% year-over-year during the quarter to $3.3 billion.
NXP's President and CEO Kurt Sievers said on the company's July earnings conference call that he doesn't "see any substantial weakening within the auto and industrial customer base." What's more, the demand for NXP's chips should remain healthy going into 2023, as the current level of non-cancelable, non-returnable orders that the company had at the end of the previous quarter was "greater than our ability to service."
It wouldn't be surprising to see NXP management singing a similar tune when the company releases its third-quarter results later this month. That's because automakers will be scrambling to place more orders for chips in a bid to boost production. McKinsey estimates that automakers are expected to place chip orders for 120 million cars in 2022, even though the auto industry's sales are likely to come in at 83 million.
So NXP should continue to witness solid demand from its largest end market. The automotive market should be a long-term growth driver for NXP, and help the company sustain its impressive growth. Let's see why.
A look at the bigger picture
We have already discussed that the semiconductor content in each vehicle is set to increase rapidly in the long run. This explains why NXP sees its automotive revenue clock a compound annual growth rate (CAGR) between 9% and 14% over three years ending in 2024. That would be a nice bump from the 7% CAGR NXP's automotive revenue posted in the past three years.
But don't be surprised to see the automotive business record stronger growth thanks to the presence of fast-growing niches such as automotive radar and electrification systems. NXP estimates that the new growth drivers could deliver $6 billion in total revenue by 2024, compared to $3 billion in 2021, in addition to the company's legacy business, which is expected to generate another $9 billion. In total, NXP sees its top line jumping to $15 billion in 2024, compared to $11 billion last year.
Multiplying the company's 2024 revenue forecast by its five-year average price-to-sales ratio of 4.3 would translate into a market cap of $64.5 billion. That implies an upside of 53% from current levels. Even better, the chipmaker is trading at 16 times trailing earnings and 10 times forward earnings, which means investors can buy this stock at a nice discount to the Nasdaq-100's earnings multiple of 23.
That's why investors looking to make the most of the automotive chip shortage and looking to add a semiconductor stock to their portfolios should consider going long NXP Semiconductors, as it can deliver robust long-term upside and is valued attractively right now.
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Nvidia, and Volkswagen AG. The Motley Fool recommends NXP Semiconductors and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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Stellantis also holds a similar view, while General Motors CEO Mary Barra also pointed out that the automotive industry could continue grappling with a chip shortage beyond next year. The shortage of chips in the auto industry isn't surprising, as the semiconductor content per vehicle increased remarkably thanks to the adoption of connected cars, autonomous driving, electrification, etc. NXP's President and CEO Kurt Sievers said on the company's July earnings conference call that he doesn't "see any substantial weakening within the auto and industrial customer base."
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The shortage of chips in the auto industry isn't surprising, as the semiconductor content per vehicle increased remarkably thanks to the adoption of connected cars, autonomous driving, electrification, etc. NXP estimates that the new growth drivers could deliver $6 billion in total revenue by 2024, compared to $3 billion in 2021, in addition to the company's legacy business, which is expected to generate another $9 billion. The Motley Fool recommends NXP Semiconductors and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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The automotive market is driving tremendous growth at NXP Semiconductors NXP Semiconductors gets half of its revenue from selling chips used in automotive applications. NXP estimates that the new growth drivers could deliver $6 billion in total revenue by 2024, compared to $3 billion in 2021, in addition to the company's legacy business, which is expected to generate another $9 billion. That's why investors looking to make the most of the automotive chip shortage and looking to add a semiconductor stock to their portfolios should consider going long NXP Semiconductors, as it can deliver robust long-term upside and is valued attractively right now.
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The automotive market is driving tremendous growth at NXP Semiconductors NXP Semiconductors gets half of its revenue from selling chips used in automotive applications. In the second quarter of 2022, the company's automotive revenue shot up 36% year-over-year to $1.7 billion. What's more, the demand for NXP's chips should remain healthy going into 2023, as the current level of non-cancelable, non-returnable orders that the company had at the end of the previous quarter was "greater than our ability to service."
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19007.0
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2022-10-06 00:00:00 UTC
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US STOCKS-Wall Street drops on inflation, rate hike worries
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-drops-on-inflation-rate-hike-worries
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nan
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nan
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By Ankika Biswas and Shreyashi Sanyal
Oct 6 (Reuters) - Wall Street's main indexes fell on Thursday on worries about persistent inflation and the Federal Reserve's aggressive rate-hike cycle, while shares of Tesla fell on worries over funding for Elon Musk's proposed buyout of Twitter.
Before dropping, markets briefly took comfort from data which showed an increase in weekly jobless claims as it raised hopes of the Fed likely to go easy with its rapid rate hikes.
However, Minneapolis Fed President Neel Kashkari said the U.S. central bank is "quite a ways away" from being able to pause its aggressive interest-rate hikes.
Data showed the number of Americans filing new claims for unemployment benefits rose more than expected last week, but the labor market remains tight even as demand for labor is cooling amid higher interest rates.
Following the report, the benchmark 10-year Treasury yield US10YT=RR initially moved lower before gaining, weighing on rate-sensitive growth stocks including Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com Inc AMZN.O, and Nvidia Corp NVDA.O. US/
Tesla Inc TSLA.O fell 1.9% as Apollo Global Management Inc APO.N and Sixth Street Partners, which had been looking to provide financing for Musk's $44-billion Twitter deal, are no longer in talks with the billionaire.
Meanwhile, oil prices held near three-week highs after the OPEC+ group of nations' largest supply cut since 2020 ahead of European Union embargoes on Russian energy is set to tighten global oil supply.
"There's no question that the reduction in output from OPEC+ is putting some upward pressure on oil prices and on prices at the pump, and that's very troubling," said Hugh Johnson, chief economist at Hugh Johnson Economics in Albany, New York.
All but the energy sector .SPNY index fell among the 11 major S&P 500 sector indexes.
At 10:24 a.m. ET, the Dow Jones Industrial Average .DJI was down 210.92 points, or 0.70%, at 30,062.95, the S&P 500 .SPX was down 27.30 points, or 0.72%, at 3,755.98, and the Nasdaq Composite .IXIC was down 74.81 points, or 0.67%, at 11,073.83.
Data on Wednesday showed increased monthly hiring by private employers in America and a rise in ISM's services industry employment gauge, suggesting the Fed will keep interest rates higher for longer.
Monthly non-farm payrolls and unemployment rate data, due on Friday, will be at the top of investors' radar to assess the quantum of the Fed's future rate hikes.
Money markets are pricing in a nearly 80% chance of a fourth straight 75-basis-point rate hike at the Fed meet on November 1-2. FEDWATCH
Investors will also closely listen to comments on inflation and rate hikes from Fed officials including Cleveland President Loretta Mester, Fed Board Governor Lisa Cook, Board Governor Christopher Waller and Chicago President Charles Evans.
Growing fears of a looming recession in corporate leadership is expected to weigh on capital spending and job openings, Goldman Sachs said in a note.
Declining issues outnumbered advancers for a 2.68-to-1 ratio on the NYSE and for a 1.66-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and 21 new lows, while the Nasdaq recorded 20 new highs and 50 new lows.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur)
((Ankika.Biswas@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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Following the report, the benchmark 10-year Treasury yield US10YT=RR initially moved lower before gaining, weighing on rate-sensitive growth stocks including Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com Inc AMZN.O, and Nvidia Corp NVDA.O. Before dropping, markets briefly took comfort from data which showed an increase in weekly jobless claims as it raised hopes of the Fed likely to go easy with its rapid rate hikes. US/ Tesla Inc TSLA.O fell 1.9% as Apollo Global Management Inc APO.N and Sixth Street Partners, which had been looking to provide financing for Musk's $44-billion Twitter deal, are no longer in talks with the billionaire.
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Following the report, the benchmark 10-year Treasury yield US10YT=RR initially moved lower before gaining, weighing on rate-sensitive growth stocks including Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com Inc AMZN.O, and Nvidia Corp NVDA.O. By Ankika Biswas and Shreyashi Sanyal Oct 6 (Reuters) - Wall Street's main indexes fell on Thursday on worries about persistent inflation and the Federal Reserve's aggressive rate-hike cycle, while shares of Tesla fell on worries over funding for Elon Musk's proposed buyout of Twitter. All but the energy sector .SPNY index fell among the 11 major S&P 500 sector indexes.
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Following the report, the benchmark 10-year Treasury yield US10YT=RR initially moved lower before gaining, weighing on rate-sensitive growth stocks including Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com Inc AMZN.O, and Nvidia Corp NVDA.O. By Ankika Biswas and Shreyashi Sanyal Oct 6 (Reuters) - Wall Street's main indexes fell on Thursday on worries about persistent inflation and the Federal Reserve's aggressive rate-hike cycle, while shares of Tesla fell on worries over funding for Elon Musk's proposed buyout of Twitter. Monthly non-farm payrolls and unemployment rate data, due on Friday, will be at the top of investors' radar to assess the quantum of the Fed's future rate hikes.
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Following the report, the benchmark 10-year Treasury yield US10YT=RR initially moved lower before gaining, weighing on rate-sensitive growth stocks including Apple Inc AAPL.O, Meta Platforms Inc META.O, Amazon.com Inc AMZN.O, and Nvidia Corp NVDA.O. By Ankika Biswas and Shreyashi Sanyal Oct 6 (Reuters) - Wall Street's main indexes fell on Thursday on worries about persistent inflation and the Federal Reserve's aggressive rate-hike cycle, while shares of Tesla fell on worries over funding for Elon Musk's proposed buyout of Twitter. Before dropping, markets briefly took comfort from data which showed an increase in weekly jobless claims as it raised hopes of the Fed likely to go easy with its rapid rate hikes.
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19008.0
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2022-10-06 00:00:00 UTC
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Meta Platforms (META) Launches Latest Features for Facebook
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AAPL
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https://www.nasdaq.com/articles/meta-platforms-meta-launches-latest-features-for-facebook
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nan
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nan
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Meta Platforms META unveiled the latest features for Facebook, which would help users to customize the Facebook Feed and select the type of content they want to view.
Facebook is continuously using machine learning to personalize feeds to users’ interests. Per its strategy, Meta Platforms recently announced the launch of its feature, allowing to select show more or show less on posts from the people and communities that users are connected to and posts that Facebook recommends.
The show more feature will increase the ranking score for posts similar to it and the show less feature will decrease the ranking score for similar posts. This will provide direct feedback to Meta Platforms to make their artificial intelligence system efficient.
The launch of the latest feature is in line with the company’s recent strategy to drive user growth for its family of apps. Meta Platforms also recently launched features to switch between and create new accounts and profiles on Facebook and Instagram more easily. Meta Platforms expects the features to boost its user growth and drive ad revenues.
Meta Platforms, Inc. Price and Consensus
Meta Platforms, Inc. price-consensus-chart | Meta Platforms, Inc. Quote
Meta Platforms Launches Features to Drive User growth
META is currently facing the worst downturn in its history, with declining digital advertisement revenues.
The recent revenue fall can be attributed to geopolitical tensions like the Russia-Ukraine war, which reduced META’s monthly active users across its family of apps, namely Facebook and Instagram. Also, rising inflation weakened digital advertising revenues. This hurt investors’ sentiments about ad revenue-dependent companies.
Ad-targeting-related headwinds resulting from Apple’s AAPL iOS changes are also impacting Meta Platforms’ ad revenue growth.
Apple’s iOS changes have made ad targeting difficult, which has increased the cost of driving outcomes. Measuring these outcomes is difficult. Meta Platforms expects these factors to hurt advertising growth through the rest of 2022.
Shares of Meta Platforms, which currently has a Zacks Rank #4 (Sell), have tumbled 59.5% in the year-to-date period compared with the Zacks Internet – Software industry’s decline of 53.7%.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Intensifying competition for ad dollars and user engagement from the likes of Snap SNAP, Twitter TWTR and TikTok are other headwinds.
Snap is benefiting from improving its user engagement, particularly in the 13-34-year-old demography, which is expanding its advertiser base. SNAP is also giving competition to META in the metaverse space. It collaborated with Vogue to feature a virtual try-on experience of select pieces from Balenciaga, Dior and Gucci, which will be available for snapchatters globally.
Although Meta Platforms is investing aggressively in building the metaverse, Twitter surpassed it as the first social media giant to enter the non-fungible token marketplace by launching a tool to showcase and sell NFTs on its platform.
Rising legal woes, strong competition and geopolitical headwinds negatively impacted revenue growth in the second quarter of 2022.
Revenues of $28.82 billion beat the Zacks Consensus Estimate by 0.44% but decreased 0.9% year over year. At constant currency (cc), the top line improved 3%.
Although Meta Platforms’ short-term revenue growth looks bleak, the company is confident about its long-term growth. It is investing heavily in developing AI, which will drive revenue growth in its ad business.
Reels are the newest trends and feeds are increasingly being recommended by AI. This will enable Meta Platforms to evolve its ad systems to help creators earn through Facebook and Instagram, and create ad revenues for the company.
Further, Meta Platforms’ investments in AI will reduce privacy breaches and protect its users' data.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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
Twitter, Inc. (TWTR): Free Stock Analysis Report
Snap Inc. (SNAP): 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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Ad-targeting-related headwinds resulting from Apple’s AAPL iOS changes are also impacting Meta Platforms’ ad revenue growth. Apple Inc. (AAPL): Free Stock Analysis Report Meta Platforms also recently launched features to switch between and create new accounts and profiles on Facebook and Instagram more easily.
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Ad-targeting-related headwinds resulting from Apple’s AAPL iOS changes are also impacting Meta Platforms’ ad revenue growth. Apple Inc. (AAPL): Free Stock Analysis Report The launch of the latest feature is in line with the company’s recent strategy to drive user growth for its family of apps.
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Ad-targeting-related headwinds resulting from Apple’s AAPL iOS changes are also impacting Meta Platforms’ ad revenue growth. Apple Inc. (AAPL): Free Stock Analysis Report Meta Platforms META unveiled the latest features for Facebook, which would help users to customize the Facebook Feed and select the type of content they want to view.
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Ad-targeting-related headwinds resulting from Apple’s AAPL iOS changes are also impacting Meta Platforms’ ad revenue growth. Apple Inc. (AAPL): Free Stock Analysis Report Meta Platforms META unveiled the latest features for Facebook, which would help users to customize the Facebook Feed and select the type of content they want to view.
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19009.0
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2022-10-05 00:00:00 UTC
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After Hours Most Active for Oct 5, 2022 : DKNG, BTRS, X, AAPL, TQQQ, FDX, QQQ, SHY, STOR, C, TMX, T
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-5-2022-%3A-dkng-btrs-x-aapl-tqqq-fdx-qqq-shy-stor-c-tmx-t
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -5.07 to 11,568.11. The total After hours volume is currently 56,919,551 shares traded.
The following are the most active stocks for the after hours session:
DraftKings Inc. (DKNG) is +0.02 at $16.72, with 4,538,767 shares traded. As reported by Zacks, the current mean recommendation for DKNG is in the "buy range".
BTRS Holdings Inc. (BTRS) is unchanged at $9.30, with 3,054,891 shares traded. As reported in the last short interest update the days to cover for BTRS is 7.073858; this calculation is based on the average trading volume of the stock.
United States Steel Corporation (X) is -0.04 at $20.15, with 2,353,442 shares traded. X's current last sale is 79.02% of the target price of $25.5.
Apple Inc. (AAPL) is -0.03 at $146.37, with 1,812,454 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
ProShares UltraPro QQQ (TQQQ) is -0.02 at $22.56, with 1,517,812 shares traded. This represents a 17.01% increase from its 52 Week Low.
FedEx Corporation (FDX) is +0.01 at $156.88, with 1,504,179 shares traded. FDX's current last sale is 78.83% of the target price of $199.
Invesco QQQ Trust, Series 1 (QQQ) is +0.09 at $282.07, with 1,464,731 shares traded. This represents a 5.6% increase from its 52 Week Low.
iShares 1-3 Year Treasury Bond ETF (SHY) is +0.03 at $81.26, with 1,197,338 shares traded. This represents a .32% increase from its 52 Week Low.
STORE Capital Corporation (STOR) is +0.05 at $31.48, with 1,160,148 shares traded. STOR's current last sale is 97.61% of the target price of $32.25.
Citigroup Inc. (C) is unchanged at $43.84, with 1,073,662 shares traded. C's current last sale is 73.07% of the target price of $60.
Terminix Global Holdings, Inc. (TMX) is -0.05 at $40.34, with 986,921 shares traded. TMX's current last sale is 91.68% of the target price of $44.
AT&T Inc. (T) is +0.03 at $15.96, with 892,397 shares traded. T's current last sale is 71.73% of the target price of $22.25.
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 -0.03 at $146.37, with 1,812,454 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 DKNG is in the "buy range".
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Apple Inc. (AAPL) is -0.03 at $146.37, with 1,812,454 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 56,919,551 shares traded.
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Apple Inc. (AAPL) is -0.03 at $146.37, with 1,812,454 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 56,919,551 shares traded.
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Apple Inc. (AAPL) is -0.03 at $146.37, with 1,812,454 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -5.07 to 11,568.11.
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19010.0
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2022-10-05 00:00:00 UTC
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US STOCKS-Wall St slides as Fed's hawkish talk snuffs two-day rally
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slides-as-feds-hawkish-talk-snuffs-two-day-rally
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nan
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nan
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By Herbert Lash, Ankika Biswas and Bansari Mayur Kamdar
Oct 5 (Reuters) - Wall Street stocks slid on Wednesday, ending the biggest two-day rally since 2020, after data showed U.S. labor demand remained strong and as Federal Reserve officials stuck to their hawkish message that interest rates will stay higher for longer.
U.S. private employers stepped up hiring in September, the ADP National Employment report on Wednesday showed, suggesting rising rates and tighter financial conditions have yet to curb labor demand as the Fed battles high inflation.
The Institute for Supply Management's services industry employment gauge shot up in another sign labor remains strong as the overall industry slowed modestly in September.
The Fed is expected to deliver a fourth straight 75-basis-point rate hike when policymakers meet Nov. 1-2, the pricing of fed fund futures shows, according to CME's FedWatch tool.
Inflation is problematic, San Francisco Fed President Mary Daly told Bloomberg TV in an interview in which she did not alter the Fed's message.
"The path is clear: we are going to raise rates to restrictive territory, then hold them there for a while," she said. "We are committed to bringing inflation down, staying course until we are well and truly done."
The benchmark S&P 500 .SPX index rose 5.7% Monday and Tuesday as Treasury yields slid sharply on softer U.S. economic data, UK's turnaround on proposed tax cuts and Australia's smaller-than-expected rate hike.
But Treasury yields rebounded on Wednesday after the economic data failed to bolster budding hopes the Fed might pivot to a less hawkish policy stance.
"This is a very temporary blip in the market," Johan Grahn, head of ETF strategy at Allianz Investment Management LLC, said about the two-day rally.
"I don't see that changing the Fed's path," Grahn said. "They're not going to let the early signs of inflation peaking scare them into a pivot or even a conversation about a pivot."
The Labor Department will release a more comprehensive and closely watched employment report for September on Friday.
Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com IncAMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell.
At 2:34PM ET, the Dow Jones Industrial Average .DJIfell 62.55 points, or 0.21%, to 30,253.77, the S&P 500 .SPXlost 12.38 points, or 0.33%, at 3,778.55 and the Nasdaq Composite .IXICdropped 65.50 points, or 0.59%, to 11,110.90.
Nine of the 11 major S&P 500 sectors declined, with utilities .SPLRCU and real estate .SPLRCR leading losses.
The energy sector .SPNYjumped 2.0% after the Organization of the Petroleum Exporting Countries and allies agreed to cut oil production the deepest since the COVID-19 pandemic began, curbing supply in an already tight market.
Healthcare .SPXHC also rose.
Twitter Inc TWTR.N lost momentum in line with its peers, a day after surging 22% on billionaire Elon Musk's decision to proceed with his original $44-billion bid to take the social media company private.
Twitter fell 0.8% and Tesla Inc TSLA.O, the electric-car maker headed by Musk, slid 4.6%.
The S&P 500 posted two new 52-week highs and nine new lows; the Nasdaq Composite recorded 33 new highs and 110 new lows.
(Reporting by Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Arun Koyyur and Richard Chang)
((Ankika.Biswas@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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Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com IncAMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell. By Herbert Lash, Ankika Biswas and Bansari Mayur Kamdar Oct 5 (Reuters) - Wall Street stocks slid on Wednesday, ending the biggest two-day rally since 2020, after data showed U.S. labor demand remained strong and as Federal Reserve officials stuck to their hawkish message that interest rates will stay higher for longer. The benchmark S&P 500 .SPX index rose 5.7% Monday and Tuesday as Treasury yields slid sharply on softer U.S. economic data, UK's turnaround on proposed tax cuts and Australia's smaller-than-expected rate hike.
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Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com IncAMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell. By Herbert Lash, Ankika Biswas and Bansari Mayur Kamdar Oct 5 (Reuters) - Wall Street stocks slid on Wednesday, ending the biggest two-day rally since 2020, after data showed U.S. labor demand remained strong and as Federal Reserve officials stuck to their hawkish message that interest rates will stay higher for longer. U.S. private employers stepped up hiring in September, the ADP National Employment report on Wednesday showed, suggesting rising rates and tighter financial conditions have yet to curb labor demand as the Fed battles high inflation.
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Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com IncAMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell. By Herbert Lash, Ankika Biswas and Bansari Mayur Kamdar Oct 5 (Reuters) - Wall Street stocks slid on Wednesday, ending the biggest two-day rally since 2020, after data showed U.S. labor demand remained strong and as Federal Reserve officials stuck to their hawkish message that interest rates will stay higher for longer. U.S. private employers stepped up hiring in September, the ADP National Employment report on Wednesday showed, suggesting rising rates and tighter financial conditions have yet to curb labor demand as the Fed battles high inflation.
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Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com IncAMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell. U.S. private employers stepped up hiring in September, the ADP National Employment report on Wednesday showed, suggesting rising rates and tighter financial conditions have yet to curb labor demand as the Fed battles high inflation. The benchmark S&P 500 .SPX index rose 5.7% Monday and Tuesday as Treasury yields slid sharply on softer U.S. economic data, UK's turnaround on proposed tax cuts and Australia's smaller-than-expected rate hike.
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19011.0
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2022-10-05 00:00:00 UTC
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How ETF Investors Can Cope With Market Volatility
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AAPL
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https://www.nasdaq.com/articles/how-etf-investors-can-cope-with-market-volatility
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nan
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nan
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(0:45) - Using Surveys To Plan Your Investments
(4:10) - Breaking Down The AAII Investor Sentiment Survey
(13:40) - Have We Seen The Worst Of This Down Market?
(17:15) - AAII Asset Allocation Survey
(25:30) - The Importance of Staying Invested During A Market Sell Off
(32:45) - Top ETFs For Long Term Investments
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Charles Rotblut, VP at American Association of Individual Investors (AAII), about coping with market volatility and the importance of staying invested.
Stocks have been on a wild ride this year as investors navigate inflation, Fed rate hikes and recession risks. Major indexes started the month of October with a bang, but it remains to be seen whether the worst is over.
Pessimism amongst individual investors recently reached its highest level in more than a decade, according to the latest AAII sentiment Survey. These readings are closely watched by many market experts and often considered a contrarian signal.
We discuss investor sentiment, recent asset allocation trends and whether the sell-off has presented some attractive opportunities for long-term investing.
Charles’ ETF picks for long-term investors are the iShares Core S&P Total U.S. Stock Market ETF ITOT and the Invesco Russell 1000 Equal Weight ETF EQAL
ITOT provides convenient access to entire US stock market in a low-cost wrapper. Apple AAPL, Microsoft MSFT, Tesla TSLA and Google parent Alphabet GOOGL account for almost 20% of the portfolio.
EQAL tracks an equal-weighted index is the Russell 1000 stocks. Each sector receives equal weight, and then each security within the sector also receives equal weight. This fund is an attractive option for investors concerned about top-heaviness of most popular indexes.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
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.
Get it 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
Microsoft Corporation (MSFT): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Invesco Russell 1000 Equal Weight ETF (EQAL): ETF Research Reports
iShares Core S&P Total U.S. Stock Market ETF (ITOT): 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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Apple AAPL, Microsoft MSFT, Tesla TSLA and Google parent Alphabet GOOGL account for almost 20% of the portfolio. Apple Inc. (AAPL): Free Stock Analysis Report Stocks have been on a wild ride this year as investors navigate inflation, Fed rate hikes and recession risks.
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Apple AAPL, Microsoft MSFT, Tesla TSLA and Google parent Alphabet GOOGL account for almost 20% of the portfolio. Apple Inc. (AAPL): Free Stock Analysis Report Charles’ ETF picks for long-term investors are the iShares Core S&P Total U.S. Stock Market ETF ITOT and the Invesco Russell 1000 Equal Weight ETF EQAL ITOT provides convenient access to entire US stock market in a low-cost wrapper.
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Apple AAPL, Microsoft MSFT, Tesla TSLA and Google parent Alphabet GOOGL account for almost 20% of the portfolio. Apple Inc. (AAPL): Free Stock Analysis Report (17:15) - AAII Asset Allocation Survey (25:30) - The Importance of Staying Invested During A Market Sell Off (32:45) - Top ETFs For Long Term Investments Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Charles Rotblut, VP at American Association of Individual Investors (AAII), about coping with market volatility and the importance of staying invested.
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Apple AAPL, Microsoft MSFT, Tesla TSLA and Google parent Alphabet GOOGL account for almost 20% of the portfolio. Apple Inc. (AAPL): Free Stock Analysis Report (17:15) - AAII Asset Allocation Survey (25:30) - The Importance of Staying Invested During A Market Sell Off (32:45) - Top ETFs For Long Term Investments Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Charles Rotblut, VP at American Association of Individual Investors (AAII), about coping with market volatility and the importance of staying invested.
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19012.0
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2022-10-05 00:00:00 UTC
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Will Apple Stock Quickly Rebound From The Sell Off?
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AAPL
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https://www.nasdaq.com/articles/will-apple-stock-quickly-rebound-from-the-sell-off
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nan
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nan
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The shares of Apple (NASDAQ:AAPL) have declined by about 12% over the past month (about 21 trading days), trading at about $138 per share. This compares to the S&P 500 which remains down by about 10% over the same period. While technology names, in general, have taken a hit due to the Federal Reserve’s continued interest rate hikes and concerns about the broader economy, Apple has seen a sharper sell-off amid reports that demand for the latest iPhone 14 handsets, which were launched in September, remains weaker than expected. Per Bloomberg, Apple has asked its suppliers to hold off on plans to raise production of the iPhone 14 series by as many as 6 million units over the year’s second half. According to the report, Apple now aims to produce about 90 million handsets for the period, roughly flat versus last year. This has spooked investors, given that iPhone remains Apple’s flagship product accounting for about 53% of sales over the first nine months of this year.
However, now that Apple stock has seen a decline of about 12% over the last month, will it continue its downward trajectory in the near term, or is a rally imminent? Going by historical performance, there is a roughly equal chance of a rise or a decline in Apple stock over the next month. Out of 133 instances in the last ten years that Apple stock saw a twenty-one-day decline of 12% or more, 68 of them resulted in Apple stock rising over the subsequent month (21 trading days). This historical pattern reflects 68 out of 133, or about 51% chance of a rise in Apple stock over the coming month, implying a neutral near-term outlook for the stock. See our analysis on Apple Stock Chance of A Rise for more details.
Calculation of ‘Event Probability’ and ‘Chance of Rise’ using last ten years data
After moving -8% or more over five days, the stock rose in the next five days on 56% of the occasions.
After moving -8% or more over ten days, the stock rose in the next ten days on 59% of the occasions
After moving -12% or more over a twenty-one-day period, the stock rose in the next twenty-one days on 51% of the occasions.
This pattern suggests that it is moderately likely that Apple stock will see gains in the near term.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Oct 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
AAPL Return 0% -20% 392%
S&P 500 Return 0% -25% 60%
Trefis Multi-Strategy Portfolio -2% -26% 195%
[1] Month-to-date and year-to-date as of 10/1/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
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 shares of Apple (NASDAQ:AAPL) have declined by about 12% over the past month (about 21 trading days), trading at about $138 per share. Total [2] AAPL Return 0% -20% 392% S&P 500 Return 0% -25% 60% Trefis Multi-Strategy Portfolio -2% -26% 195% [1] Month-to-date and year-to-date as of 10/1/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. While technology names, in general, have taken a hit due to the Federal Reserve’s continued interest rate hikes and concerns about the broader economy, Apple has seen a sharper sell-off amid reports that demand for the latest iPhone 14 handsets, which were launched in September, remains weaker than expected.
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Total [2] AAPL Return 0% -20% 392% S&P 500 Return 0% -25% 60% Trefis Multi-Strategy Portfolio -2% -26% 195% [1] Month-to-date and year-to-date as of 10/1/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The shares of Apple (NASDAQ:AAPL) have declined by about 12% over the past month (about 21 trading days), trading at about $138 per share. Out of 133 instances in the last ten years that Apple stock saw a twenty-one-day decline of 12% or more, 68 of them resulted in Apple stock rising over the subsequent month (21 trading days).
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Total [2] AAPL Return 0% -20% 392% S&P 500 Return 0% -25% 60% Trefis Multi-Strategy Portfolio -2% -26% 195% [1] Month-to-date and year-to-date as of 10/1/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The shares of Apple (NASDAQ:AAPL) have declined by about 12% over the past month (about 21 trading days), trading at about $138 per share. Out of 133 instances in the last ten years that Apple stock saw a twenty-one-day decline of 12% or more, 68 of them resulted in Apple stock rising over the subsequent month (21 trading days).
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Total [2] AAPL Return 0% -20% 392% S&P 500 Return 0% -25% 60% Trefis Multi-Strategy Portfolio -2% -26% 195% [1] Month-to-date and year-to-date as of 10/1/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The shares of Apple (NASDAQ:AAPL) have declined by about 12% over the past month (about 21 trading days), trading at about $138 per share. According to the report, Apple now aims to produce about 90 million handsets for the period, roughly flat versus last year.
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19013.0
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2022-10-05 00:00:00 UTC
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US STOCKS-Wall St ends down as two-day rally fizzles on data, Fed message
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-ends-down-as-two-day-rally-fizzles-on-data-fed-message-0
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nan
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nan
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By Herbert Lash, Ankika Biswas and Bansari Mayur Kamdar
Oct 5 (Reuters) - Wall Street stocks closed lower on Wednesday, unable to sustain a late-day surge, after data showing strong U.S. labor demand again suggested the Federal Reserve will keep interest rates higher for longer.
Fed officials have insisted on aggressive rate tightening to battle inflation, a message the market has feared would lead to a hard landing and likely recession.
However, investors also sought bargains in a market that appears oversold. The forward price-to-earnings ratio is at 15.9, close to its historic mean, down from around 22 before the market's big slide this year.
"By battling back, to me that is a favorable indicator that this rally could have legs," said Sam Stovall, chief investment strategist at CFRA Research in New York.
"It too confirms that investors believe, traders believe, that there's still more to go in this rally," he said.
U.S. private employers stepped up hiring in September, the ADP National Employment report on Wednesday showed, suggesting rising rates and tighter financial conditions have yet to curb labor demand as the Fed battles high inflation.
The Institute for Supply Management's services industry employment gauge shot up in another sign labor remains strong as the overall industry slowed modestly in September.
The Fed is expected to deliver a fourth straight 75-basis-point rate hike when policymakers meet Nov. 1-2, the pricing of fed fund futures shows, according to CME's FedWatch tool.
San Francisco Fed President Mary Daly told Bloomberg TV in an interview that inflation is problematic and that the U.S. central bank would stay the course.
"The path is clear: we are going to raise rates to restrictive territory, then hold them there for a while," she said. "We are committed to bringing inflation down, staying course until we are well and truly done."
The benchmark S&P 500 .SPX index rose 5.7% Monday and Tuesday as Treasury yields slid sharply on softer U.S. economic data, the UK's turnaround on proposed tax cuts that had roiled markets and Australia's smaller-than-expected rate hike.
Treasury yields shot up again on Wednesday after the softer economic data failed to bolster budding hopes the Fed might pivot to a less hawkish policy stance.
Eight of the 11 major S&P 500 sectors fell, led by a 2.25% decline in utilities .SPLRCU and 1.9% drop in real estate .SPLRCR.
The energy sector led the market higher, up 2.06%, after the Organization of the Petroleum Exporting Countries and allies agreed to cut oil production the deepest since the COVID-19 pandemic began, curbing supply in an already tight market.
The Dow Jones Industrial Average .DJI fell 42.45 points, or 0.14%, to 30,273.87, the S&P 500 .SPX lost 7.65 points, or 0.20%, to 3,783.28 and the Nasdaq Composite .IXIC dropped 27.77 points, or 0.25%, to 11,148.64.
Volume on U.S. exchanges was 10.43 billion shares, compared with the 11.64 billion average for the full session over the past 20 trading days.
Twitter Inc TWTR.N lost momentum in line with its peers, a day after surging 22% on billionaire Elon Musk's decision to proceed with his original $44-billion bid to take the social media company private.
Twitter fell 1.35% and Tesla Inc TSLA.O, the electric-car maker headed by Musk, also slid 3.46.
Declining issues outnumbered advancers on the NYSE by a 2.08-to-1 ratio; on Nasdaq, a 1.69-to-1 ratio favored decliners.
The S&P 500 posted two new 52-week highs and nine new lows; the Nasdaq Composite recorded 49 new highs and 128 new lows.
S&P 500 forward PEhttps://tmsnrt.rs/3T0j28s
(Reporting by Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Arun Koyyur and Richard Chang)
((Ankika.Biswas@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 Herbert Lash, Ankika Biswas and Bansari Mayur Kamdar Oct 5 (Reuters) - Wall Street stocks closed lower on Wednesday, unable to sustain a late-day surge, after data showing strong U.S. labor demand again suggested the Federal Reserve will keep interest rates higher for longer. The benchmark S&P 500 .SPX index rose 5.7% Monday and Tuesday as Treasury yields slid sharply on softer U.S. economic data, the UK's turnaround on proposed tax cuts that had roiled markets and Australia's smaller-than-expected rate hike. Twitter Inc TWTR.N lost momentum in line with its peers, a day after surging 22% on billionaire Elon Musk's decision to proceed with his original $44-billion bid to take the social media company private.
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By Herbert Lash, Ankika Biswas and Bansari Mayur Kamdar Oct 5 (Reuters) - Wall Street stocks closed lower on Wednesday, unable to sustain a late-day surge, after data showing strong U.S. labor demand again suggested the Federal Reserve will keep interest rates higher for longer. U.S. private employers stepped up hiring in September, the ADP National Employment report on Wednesday showed, suggesting rising rates and tighter financial conditions have yet to curb labor demand as the Fed battles high inflation. S&P 500 forward PEhttps://tmsnrt.rs/3T0j28s (Reporting by Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Arun Koyyur and Richard Chang) ((Ankika.Biswas@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 Herbert Lash, Ankika Biswas and Bansari Mayur Kamdar Oct 5 (Reuters) - Wall Street stocks closed lower on Wednesday, unable to sustain a late-day surge, after data showing strong U.S. labor demand again suggested the Federal Reserve will keep interest rates higher for longer. U.S. private employers stepped up hiring in September, the ADP National Employment report on Wednesday showed, suggesting rising rates and tighter financial conditions have yet to curb labor demand as the Fed battles high inflation. The benchmark S&P 500 .SPX index rose 5.7% Monday and Tuesday as Treasury yields slid sharply on softer U.S. economic data, the UK's turnaround on proposed tax cuts that had roiled markets and Australia's smaller-than-expected rate hike.
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"It too confirms that investors believe, traders believe, that there's still more to go in this rally," he said. U.S. private employers stepped up hiring in September, the ADP National Employment report on Wednesday showed, suggesting rising rates and tighter financial conditions have yet to curb labor demand as the Fed battles high inflation. Eight of the 11 major S&P 500 sectors fell, led by a 2.25% decline in utilities .SPLRCU and 1.9% drop in real estate .SPLRCR.
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19014.0
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2022-10-05 00:00:00 UTC
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Amazon (AMZN) Boosts Its Healthcare Efforts With Halo Rise
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AAPL
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https://www.nasdaq.com/articles/amazon-amzn-boosts-its-healthcare-efforts-with-halo-rise
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nan
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nan
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Amazon AMZN continues to make concerted efforts to bolster its personal healthcare offerings in a bid to expand its presence in the multi-trillion healthcare market.
This is evident from the latest introduction of a sleep tracker, Halo Rise, a multi-purpose bedside tracker designed to provide personalized sleep analysis that helps improve users’ sleep.
The device can determine one’s sleep stages throughout the night by sensing respiration and monitoring movement patterns accurately with the help of contactless, low-energy sensor technology and machine learning.
It measures room temperature, humidity and light levels with its inbuilt environmental sensors. With this, Halo Rise helps enhance the sleep experience by offering science-backed recommendations.
Also, the device enables users to personalize their sleep experience with Alexa.
We believe that all these features will aid the adoption rate of Halo Rise.
Prospects & Competitive Scenario
Amazon positions itself well to penetrate the growing sleep tracker market on the back of its latest move.
According to a report from Kenneth Research, theglobal marketfor sleep tracking products is expected to see a CAGR of 17.5% between 2020 and 2028, and generate revenues of $1.12 billion by 2028.
Increasing awareness among people about the importance of keeping a check on health and sleep conditions is driving this market’s growth.
Given the upbeat scenario, other companies like Alphabet GOOGL, Garmin GRMN and Apple AAPL are deepening their focus on offering improved sleep tracking features via their devices.
Alphabet’s division Google offers improved sleep tracking capability via its Nest Hub, which is equipped with advanced sleep sensing technology. The company enables concerned people to sync data from their sleep-tracking app into the Google Fit app.
Meanwhile, Apple allows people to track their sleep cycle and stages via the Sleep app on the Apple Watch. The company allows users to create personalized sleep schedules to help meet their sleep goals and improve overall health.
Garmin offers an advanced sleep monitoring (ASM) feature with an optical heart rate sensor on many of its smartwatches. Users can track their sleep statistics in Garmin Connect after wearing the watch while sleeping.
Nevertheless, Amazon’s robust technology and the unveiling of Halo Rise are likely to give tough competition to the above-mentioned companies.
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Garmin Ltd. (GRMN): 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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Given the upbeat scenario, other companies like Alphabet GOOGL, Garmin GRMN and Apple AAPL are deepening their focus on offering improved sleep tracking features via their devices. Apple Inc. (AAPL): Free Stock Analysis Report The device can determine one’s sleep stages throughout the night by sensing respiration and monitoring movement patterns accurately with the help of contactless, low-energy sensor technology and machine learning.
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Apple Inc. (AAPL): Free Stock Analysis Report Given the upbeat scenario, other companies like Alphabet GOOGL, Garmin GRMN and Apple AAPL are deepening their focus on offering improved sleep tracking features via their devices. This is evident from the latest introduction of a sleep tracker, Halo Rise, a multi-purpose bedside tracker designed to provide personalized sleep analysis that helps improve users’ sleep.
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Given the upbeat scenario, other companies like Alphabet GOOGL, Garmin GRMN and Apple AAPL are deepening their focus on offering improved sleep tracking features via their devices. Apple Inc. (AAPL): Free Stock Analysis Report This is evident from the latest introduction of a sleep tracker, Halo Rise, a multi-purpose bedside tracker designed to provide personalized sleep analysis that helps improve users’ sleep.
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Given the upbeat scenario, other companies like Alphabet GOOGL, Garmin GRMN and Apple AAPL are deepening their focus on offering improved sleep tracking features via their devices. Apple Inc. (AAPL): Free Stock Analysis Report And in a new FREE report, Zacks is revealing those stocks to you.
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19015.0
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2022-10-05 00:00:00 UTC
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SH, DWPP: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/sh-dwpp%3A-big-etf-outflows
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nan
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nan
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares Short S&P500 (SH), where 15,475,000 units were destroyed, or a 6.6% decrease week over week.
And on a percentage change basis, the ETF with the biggest outflow was the First Trust Dorsey Wright People's Portfolio ETF (DWPP), which lost 100,000 of its units, representing a 40.0% decline in outstanding units compared to the week prior. Among the largest underlying components of DWPP, in morning trading today Apple (AAPL) is off about 1.8%, and Microsoft Corporation (MSFT) is lower by about 1.7%.
VIDEO: SH, DWPP: Big ETF Outflows
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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Among the largest underlying components of DWPP, in morning trading today Apple (AAPL) is off about 1.8%, and Microsoft Corporation (MSFT) is lower by about 1.7%. And on a percentage change basis, the ETF with the biggest outflow was the First Trust Dorsey Wright People's Portfolio ETF (DWPP), which lost 100,000 of its units, representing a 40.0% decline in outstanding units compared to the week prior. VIDEO: SH, DWPP: Big ETF Outflows 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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Among the largest underlying components of DWPP, in morning trading today Apple (AAPL) is off about 1.8%, and Microsoft Corporation (MSFT) is lower by about 1.7%. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares Short S&P500 (SH), where 15,475,000 units were destroyed, or a 6.6% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the First Trust Dorsey Wright People's Portfolio ETF (DWPP), which lost 100,000 of its units, representing a 40.0% decline in outstanding units compared to the week prior.
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Among the largest underlying components of DWPP, in morning trading today Apple (AAPL) is off about 1.8%, and Microsoft Corporation (MSFT) is lower by about 1.7%. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares Short S&P500 (SH), where 15,475,000 units were destroyed, or a 6.6% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the First Trust Dorsey Wright People's Portfolio ETF (DWPP), which lost 100,000 of its units, representing a 40.0% decline in outstanding units compared to the week prior.
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Among the largest underlying components of DWPP, in morning trading today Apple (AAPL) is off about 1.8%, and Microsoft Corporation (MSFT) is lower by about 1.7%. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares Short S&P500 (SH), where 15,475,000 units were destroyed, or a 6.6% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the First Trust Dorsey Wright People's Portfolio ETF (DWPP), which lost 100,000 of its units, representing a 40.0% decline in outstanding units compared to the week prior.
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19016.0
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2022-10-05 00:00:00 UTC
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US STOCKS-Wall St slides as rising Treasury yields snuff out stock rally
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slides-as-rising-treasury-yields-snuff-out-stock-rally-0
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nan
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nan
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By Ankika Biswas and Bansari Mayur Kamdar
Oct 5 (Reuters) - Wall Street fell on Wednesday as a two-day rally in U.S. stocks was cut short by rising Treasury yields after data showed firm demand in labor market despite rising interest rates.
The benchmark S&P 500 .SPX index has gained 4% so far this week as yields fell for two straight sessions on softer U.S. economic data, UK's tax turnaround and Australia's smaller-than-expected rate hike. .N
But the yields on the 10-year Treasury note US10YT=RR recovered sharply as economic data failed to reinforce recent hopes that the Federal Reserve might pivot to a less hawkish policy stance. US/
Adding to the boost, ADP data showed U.S. private employers stepped up hiring in September, indicating more room for the Federal Reserve to remain aggressive in its rate hike stance.
"It's a little bit more jobs being created or opened than the market was expecting and that leads to the belief that the Fed is not going to be pivoting in November," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
The Institute for Supply Management's services industry employment gauge also shot up suggesting demand for labor remains strong, while the overall industry slowed modestly in September.
The private payrolls and ISM reports come ahead of a more comprehensive and closely watched employment report from the Labor Department for September on Friday.
Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell between 1.3% and 2.8%.
"The market has yet to complete a capitulation," said Peter Cardillo, chief market economist at Spartan Capital Securities LLC
"The past couple of days was just basically a rally in the bear market and the market needs desperately to capitulate before we can see stabilization."
At 11:35 a.m. ET, the Dow Jones Industrial Average .DJI was down 293.33 points, or 0.97%, at 30,022.99, the S&P 500 .SPX was down 49.83 points, or 1.31%, at 3,741.10, and the Nasdaq Composite .IXIC was down 207.34 points, or 1.86%, at 10,969.07.
Banks .SPXBK dipped 2% after jumping 4.4% in the previous session.
Ten of the 11 major S&P 500 sectors declined, with utilities .SPLRCU and real estate .SPLRCR stocks leading losses.
Energy stocks .SPNY were the sole gainer, up 1.5% after OPEC+ agreed its deepest cuts to oil production since the 2020 COVID pandemic, curbing supply in an already tight market.
Twitter Inc TWTR.N lost momentum in line with its peers, a day after surging 22% after billionaire Elon Musk decided to proceed with his original $44-billion bid to take the social media company private.
Tesla Inc TSLA.O, the electric-car maker headed by Musk, slid 6.1%.
Declining issues outnumbered advancers for a 5.29-to-1 ratio on the NYSE and a 3.36-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and nine new lows, while the Nasdaq recorded 29 new highs and 80 new lows.
(Reporting by Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Arun Koyyur)
((Ankika.Biswas@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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Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell between 1.3% and 2.8%. The benchmark S&P 500 .SPX index has gained 4% so far this week as yields fell for two straight sessions on softer U.S. economic data, UK's tax turnaround and Australia's smaller-than-expected rate hike. US/ Adding to the boost, ADP data showed U.S. private employers stepped up hiring in September, indicating more room for the Federal Reserve to remain aggressive in its rate hike stance.
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Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell between 1.3% and 2.8%. By Ankika Biswas and Bansari Mayur Kamdar Oct 5 (Reuters) - Wall Street fell on Wednesday as a two-day rally in U.S. stocks was cut short by rising Treasury yields after data showed firm demand in labor market despite rising interest rates. US/ Adding to the boost, ADP data showed U.S. private employers stepped up hiring in September, indicating more room for the Federal Reserve to remain aggressive in its rate hike stance.
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Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell between 1.3% and 2.8%. By Ankika Biswas and Bansari Mayur Kamdar Oct 5 (Reuters) - Wall Street fell on Wednesday as a two-day rally in U.S. stocks was cut short by rising Treasury yields after data showed firm demand in labor market despite rising interest rates. US/ Adding to the boost, ADP data showed U.S. private employers stepped up hiring in September, indicating more room for the Federal Reserve to remain aggressive in its rate hike stance.
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Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell between 1.3% and 2.8%. By Ankika Biswas and Bansari Mayur Kamdar Oct 5 (Reuters) - Wall Street fell on Wednesday as a two-day rally in U.S. stocks was cut short by rising Treasury yields after data showed firm demand in labor market despite rising interest rates. US/ Adding to the boost, ADP data showed U.S. private employers stepped up hiring in September, indicating more room for the Federal Reserve to remain aggressive in its rate hike stance.
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19017.0
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2022-10-05 00:00:00 UTC
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Disney (DIS) Rides on Disney+ Growth, Strong Content Portfolio
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AAPL
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https://www.nasdaq.com/articles/disney-dis-rides-on-disney-growth-strong-content-portfolio
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nan
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nan
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The Walt Disney Company DIS is benefiting from an expanding content portfolio of Disney+, which is driving user base growth. Disney+, as of Jul 2, 2022, had 152.1 million paid subscribers compared with 116 million as of Jul 3, 2021.
Disney, at the end of third-quarter fiscal 2022, had 221.1 million (including Disney+, ESPN+ and Hulu) subscribers, more than Netflix’s NFLX user base of 220.7 million, which it reported at the end of June.
ESPN+ had 22.8 million paid subscribers at the end of the fiscal third quarter compared with 14.9 million at the end of the year-ago quarter. Hulu ended the quarter with 46.2 million paid subscribers, up from 42.8 million reported in the year-ago quarter.
The rapidly growing subscriber base strengthens Disney’s position in the increasingly saturated streaming space currently dominated by Netflix and the growing prominence of services from Apple AAPL, Comcast CMCSA, Amazon prime video and HBO Max.
New President & Ad-Tier for Disney+
Disney recently appointed Alisa Bowen as the President of Disney+, effective immediately. Bowen will continue to report to Michael Paull, President, Direct to Consumer, Disney Media Entertainment & Distribution.
Disney is now set to launch a new ad-supported offering for the Disney+ streaming service starting Dec 8, 2022. The new ad-supported Disney+ Basic subscription will cost $7.99 a month, which is the current pricing for Disney+ without ads. Disney noted that the ad-free subscription plan will be called Disney+ Premium and will cost $10.99 a month.
Disney is also raising the price of its Hulu subscription. The ad-free tier will jump from $12.99/month to $14.99, while the ad-supported version will cost $7.99/month, up from $6.99. The new pricing goes into effect on Oct 10, 2022. A price hike for ESPN+ streaming was announced in July, taking the monthly price from $6.99 to $9.99/month.
Subscription costs for users with an ad-free Disney+ subscription along with an ad-supported plan for Hulu and ESPN Plus will increase from $13.99 to $14.99/month. Disney is also introducing a bundle that includes Disney+ and Hulu with ads for $9.99/month. Meanwhile, bundled together, Disney+, Hulu and ad-supported ESPN+ will cost $19.99/month.
Disney has also adjusted the pricing for its Hulu live TV bundles. Hulu’s live TV bundle with ad-supported Disney+, Hulu, and ESPN+ plans will cost $69.99/month. The live TV bundle with ad-free Disney+, as well as ad-supported Hulu and ESPN+ plans, will cost $74.99. Users will have to spend $82.99/month to get a live TV plan without ads on Disney+ or Hulu and ad-supported ESPN+.
Stiff Competition Remains a Headwind
Competition in the streaming space is becoming stiff with the launch of numerous services.
Disney’s closest peer Netflix is also set to introduce a new lower-priced ad-supported subscription plan apart from its existing ad-free basic, standard and premium plans.
Apple’s streaming service, Apple TV+, continues to gain recognition with its critically acclaimed and popular shows like Ted Lasso.
Comcast’s Peacock also offers a free-to-watch tier with ad support that has about 40,000 hours of content. Peacock is well poised to grow, owing to its vast library of IPs and new productions.
Nevertheless, Disney is expected to benefit from the increase in ad-free subscription pricing as rising production and programming costs for Disney+ and higher sports programming costs at ESPN+ contributed to operating losses in the recently reported fiscal third quarter.
Direct-to-Consumer revenues increased 19% year over year to $5.1 billion and operating loss increased $0.8 billion to $1.1 billion. The increase in operating loss was due to a higher loss at Disney+, lower operating income at Hulu, and to a lesser extent, a higher loss at ESPN+.
Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom
It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.
>>Show me how I could profit from the metaverse!
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
Comcast Corporation (CMCSA): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
The Walt Disney Company (DIS): 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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The rapidly growing subscriber base strengthens Disney’s position in the increasingly saturated streaming space currently dominated by Netflix and the growing prominence of services from Apple AAPL, Comcast CMCSA, Amazon prime video and HBO Max. Apple Inc. (AAPL): Free Stock Analysis Report The Walt Disney Company DIS is benefiting from an expanding content portfolio of Disney+, which is driving user base growth.
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The rapidly growing subscriber base strengthens Disney’s position in the increasingly saturated streaming space currently dominated by Netflix and the growing prominence of services from Apple AAPL, Comcast CMCSA, Amazon prime video and HBO Max. Apple Inc. (AAPL): Free Stock Analysis Report Disney, at the end of third-quarter fiscal 2022, had 221.1 million (including Disney+, ESPN+ and Hulu) subscribers, more than Netflix’s NFLX user base of 220.7 million, which it reported at the end of June.
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The rapidly growing subscriber base strengthens Disney’s position in the increasingly saturated streaming space currently dominated by Netflix and the growing prominence of services from Apple AAPL, Comcast CMCSA, Amazon prime video and HBO Max. Apple Inc. (AAPL): Free Stock Analysis Report Disney, at the end of third-quarter fiscal 2022, had 221.1 million (including Disney+, ESPN+ and Hulu) subscribers, more than Netflix’s NFLX user base of 220.7 million, which it reported at the end of June.
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The rapidly growing subscriber base strengthens Disney’s position in the increasingly saturated streaming space currently dominated by Netflix and the growing prominence of services from Apple AAPL, Comcast CMCSA, Amazon prime video and HBO Max. Apple Inc. (AAPL): Free Stock Analysis Report Nevertheless, Disney is expected to benefit from the increase in ad-free subscription pricing as rising production and programming costs for Disney+ and higher sports programming costs at ESPN+ contributed to operating losses in the recently reported fiscal third quarter.
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19018.0
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2022-10-05 00:00:00 UTC
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US STOCKS-Wall St slides as rising Treasury yields snuff out stock rally
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slides-as-rising-treasury-yields-snuff-out-stock-rally
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nan
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nan
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By Ankika Biswas and Bansari Mayur Kamdar
Oct 5 (Reuters) - U.S. stocks fell on Wednesday as a two-day rally in growth stocks was cut short by rising Treasury yields after data showed despite rising interest rates, the demand in labor market remained firm and the services industry slowed modestly.
After posting a loss in the previous quarter, the benchmark S&P 500 index has gained 4% so far this week as yields fell for two straight sessions on softer U.S. economic data, UK's tax turnaround and Australia's smaller-than-expected rate hike. .N
But the yields on the 10-year Treasury note US10YT=RR rose again sharply as traders reassessed their positions based on how aggressively they expect the Federal Reserve will raise rates. US/
Adding to the boost, ADP data showed U.S. private employers stepped up hiring in September, indicating more room for the Federal Reserve to remain aggressive in its rate hike stance.
"It's a little bit more jobs being created or opened than the market was expecting and that leads to the belief that the Fed is not going to be pivoting in November," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
The Institute for Supply Management's services industry employment gauge also shot up suggesting demand for labor remains strong, while the overall industry slowed modestly in September.
The private payrolls and ISM reports come ahead of a more comprehensive and closely watched employment report from the Labor Department for September on Friday.
Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell between 1.8% and 4%.
"The market has yet to complete a capitulation," said Peter Cardillo, chief market economist at Spartan Capital Securities LLC
"The past couple of days was just basically a rally in the bear market and the market needs desperately to capitulate before we can see stabilization."
At 10:32 a.m. ET, the Dow Jones Industrial Average .DJI was down 407.54 points, or 1.34%, at 29,908.78, the S&P 500 .SPX was down 65.84 points, or 1.74%, at 3,725.09, and the Nasdaq Composite .IXIC was down 258.08 points, or 2.31%, at 10,918.32.
Banks such as Citigroup C.N and JPMorgan Chase & Co JPM.N slipped more than 2% each.
Ten of the 11 major S&P 500 sectors declined in early trading with utilities .SPLRCU and real estate .SPLRCR stocks leading losses.
Energy .SPNY was the sole gainer, up 0.3% after OPEC+ agreed its deepest cuts to oil production since the 2020 COVID pandemic. O/R
Twitter Inc TWTR.N lost momentum in line with its peers, a day after surging 22% after billionaire Elon Musk decided to proceed with his original $44-billion bid to take the social media company private.
Tesla Inc TSLA.O, the electric car maker headed by Musk, slid 5%.
Declining issues outnumbered advancers for a 7.56-to-1 ratio on the NYSE and a 4.14-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and nine new lows, while the Nasdaq recorded 26 new highs and 63 new lows.
(Reporting by Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Arun Koyyur)
((Ankika.Biswas@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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Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell between 1.8% and 4%. After posting a loss in the previous quarter, the benchmark S&P 500 index has gained 4% so far this week as yields fell for two straight sessions on softer U.S. economic data, UK's tax turnaround and Australia's smaller-than-expected rate hike. US/ Adding to the boost, ADP data showed U.S. private employers stepped up hiring in September, indicating more room for the Federal Reserve to remain aggressive in its rate hike stance.
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Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell between 1.8% and 4%. By Ankika Biswas and Bansari Mayur Kamdar Oct 5 (Reuters) - U.S. stocks fell on Wednesday as a two-day rally in growth stocks was cut short by rising Treasury yields after data showed despite rising interest rates, the demand in labor market remained firm and the services industry slowed modestly. US/ Adding to the boost, ADP data showed U.S. private employers stepped up hiring in September, indicating more room for the Federal Reserve to remain aggressive in its rate hike stance.
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Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell between 1.8% and 4%. By Ankika Biswas and Bansari Mayur Kamdar Oct 5 (Reuters) - U.S. stocks fell on Wednesday as a two-day rally in growth stocks was cut short by rising Treasury yields after data showed despite rising interest rates, the demand in labor market remained firm and the services industry slowed modestly. US/ Adding to the boost, ADP data showed U.S. private employers stepped up hiring in September, indicating more room for the Federal Reserve to remain aggressive in its rate hike stance.
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Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell between 1.8% and 4%. By Ankika Biswas and Bansari Mayur Kamdar Oct 5 (Reuters) - U.S. stocks fell on Wednesday as a two-day rally in growth stocks was cut short by rising Treasury yields after data showed despite rising interest rates, the demand in labor market remained firm and the services industry slowed modestly. US/ Adding to the boost, ADP data showed U.S. private employers stepped up hiring in September, indicating more room for the Federal Reserve to remain aggressive in its rate hike stance.
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19019.0
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2022-10-05 00:00:00 UTC
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Apple (AAPL) Gains As Market Dips: What You Should Know
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-gains-as-market-dips%3A-what-you-should-know-4
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nan
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nan
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In the latest trading session, Apple (AAPL) closed at $146.40, marking a +0.21% move from the previous day. This change outpaced the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.12%.
Coming into today, shares of the maker of iPhones, iPads and other products had lost 5.46% in the past month. In that same time, the Computer and Technology sector lost 4.64%, while the S&P 500 lost 3.29%.
Wall Street will be looking for positivity from Apple as it approaches its next earnings report date. This is expected to be October 27, 2022. In that report, analysts expect Apple to post earnings of $1.25 per share. This would mark year-over-year growth of 0.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $88.06 billion, up 5.64% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Apple. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.08% lower within the past month. Apple is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Apple is currently trading at a Forward P/E ratio of 22.54. This represents a premium compared to its industry's average Forward P/E of 6.53.
Investors should also note that AAPL has a PEG ratio of 1.8 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Mini computers industry currently had an average PEG ratio of 2.1 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 243, which puts it in the bottom 4% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom
It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.
>>Show me how I could profit from the metaverse!
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
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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In the latest trading session, Apple (AAPL) closed at $146.40, marking a +0.21% move from the previous day. Investors should also note that AAPL has a PEG ratio of 1.8 right now. Apple Inc. (AAPL): Free Stock Analysis Report
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In the latest trading session, Apple (AAPL) closed at $146.40, marking a +0.21% move from the previous day. Investors should also note that AAPL has a PEG ratio of 1.8 right now. Apple Inc. (AAPL): Free Stock Analysis Report
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In the latest trading session, Apple (AAPL) closed at $146.40, marking a +0.21% move from the previous day. Investors should also note that AAPL has a PEG ratio of 1.8 right now. Apple Inc. (AAPL): Free Stock Analysis Report
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In the latest trading session, Apple (AAPL) closed at $146.40, marking a +0.21% move from the previous day. Investors should also note that AAPL has a PEG ratio of 1.8 right now. Apple Inc. (AAPL): Free Stock Analysis Report
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19020.0
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2022-10-05 00:00:00 UTC
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Amazon (AMZN) to Attract Customers With Fire TV Omni Series
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AAPL
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https://www.nasdaq.com/articles/amazon-amzn-to-attract-customers-with-fire-tv-omni-series
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nan
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nan
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Amazon AMZN is constantly expanding its smart television portfolio on the back of product launches.
This is evident from Amazon’s recent introduction of the Fire TV Omni QLED Series featuring the Fire TV Ambient Experience.
The smart TV features a 4k quantum dot technology enabled display with up to 96 local dimming zones, Dolby Vision IQ and HDR10+ Adaptive support, letting users enjoy a cinematic experience. They can also get recommendations based on the day’s top-trending video titles on Fire TV.
Moreover, the device is compatible with Alexa, allowing users to operate the Fire TV Ambient Experience with their voice. With Alexa, users can also listen to music, podcasts or audiobooks or play audio from services like Amazon Music, Spotify, iHeart Radio, TuneIn, Apple Podcasts and Audible.
The Fire TV also permits users to view a broad collection of gallery-quality photos and curated art pieces on their television without any subscription. Users can also get updated with the local or national news by connecting the TV with Amazon Freevee and the Amazon News app.
Reportedly, the Fire TV is presently available on the Amazon platform in the United States and Canada.
On the back of the Fire TV Omni QLED Series, Amazon aims to provide an enhanced television experience to its customers. This is expected to boost the adoption rate of Fire TV.
Growing Efforts to Boost Prospects
Apart from the introduction of Fire TV Omni QLED Series, Amazon is continuously launching media-streaming devices to offer a better streaming experience to customers.
Amazon offers Fire TV stick 4K and Fire TV cube featuring hands-free streaming. Both devices are compatible with Alexa and support the content of Prime Video, Netflix and Hotstar, among others.
Amazon’s growing initiatives in the video-streaming space are expected to help it capitalize on the prospects in the video-streaming market.
Per a Fortune Business Insights report, the global video-streaming market is expected to reach $1.69 trillion by 2029 from $473.4 billion in 2022, witnessing a CAGR of 19.9% between 2022 and 2029.
Competitive Market Scenario
Given the solid growth potential in the video-streaming market, not only the retail giant AMZN but other companies, including Alphabet GOOGL, Apple AAPL and Roku ROKU, are also making strong initiatives to bolster their presence in the space.
Alphabet is gaining momentum in the streaming space with its streaming platforms named Google TV and Android TV, and the media-streaming device called Chromecast. Reportedly, GOOGL introduced audio descriptions on Google TV video content to help users with visual impairment understand the movie or TV shows properly. This is likely to help Alphabet attract visually-impaired customers to its platform.
Apple’s growing interest in sports streaming remains a major positive. Recently, AAPL signed a multi-year agreement with Nike to create and produce sports movies. Further, its growing original and regional content portfolio is helping it expand its user base. Additionally, Apple provides a streaming dongle named Apple TV 4K, backed by the Apple A12 Bionic chip. The streaming stick supports 4K HDR video and Dolby Atmos sound.
Roku is benefiting from strong momentum in average revenue per user and better user engagement. The Roku Channel is witnessing a surge in premium subscription signups, which is a major positive. Further, the Roku streaming stick offers free streaming of TV, live news, sports, music, movies and more in HD format, and is compatible with Alexa and Google Assistant.
Nevertheless, Amazon’s growing product introductions in the streaming space are expected to help it gain a competitive edge over its aforesaid peers.
Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom
It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.
>>Show me how I could profit from the metaverse!
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
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Roku, Inc. (ROKU): 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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Competitive Market Scenario Given the solid growth potential in the video-streaming market, not only the retail giant AMZN but other companies, including Alphabet GOOGL, Apple AAPL and Roku ROKU, are also making strong initiatives to bolster their presence in the space. Recently, AAPL signed a multi-year agreement with Nike to create and produce sports movies. Apple Inc. (AAPL): Free Stock Analysis Report
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Competitive Market Scenario Given the solid growth potential in the video-streaming market, not only the retail giant AMZN but other companies, including Alphabet GOOGL, Apple AAPL and Roku ROKU, are also making strong initiatives to bolster their presence in the space. Recently, AAPL signed a multi-year agreement with Nike to create and produce sports movies. Apple Inc. (AAPL): Free Stock Analysis Report
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Competitive Market Scenario Given the solid growth potential in the video-streaming market, not only the retail giant AMZN but other companies, including Alphabet GOOGL, Apple AAPL and Roku ROKU, are also making strong initiatives to bolster their presence in the space. Recently, AAPL signed a multi-year agreement with Nike to create and produce sports movies. Apple Inc. (AAPL): Free Stock Analysis Report
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Competitive Market Scenario Given the solid growth potential in the video-streaming market, not only the retail giant AMZN but other companies, including Alphabet GOOGL, Apple AAPL and Roku ROKU, are also making strong initiatives to bolster their presence in the space. Recently, AAPL signed a multi-year agreement with Nike to create and produce sports movies. Apple Inc. (AAPL): Free Stock Analysis Report
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19021.0
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2022-10-05 00:00:00 UTC
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Here Are 3 Long-Term Reasons to Buy Apple Today
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AAPL
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https://www.nasdaq.com/articles/here-are-3-long-term-reasons-to-buy-apple-today
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nan
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nan
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The iPhone will likely continue to be a significant part of the Apple (NASDAQ: AAPL) business in the near and medium term. However, some worry that the outsize growth in the smartphone market is slowing. There are questions about whether market saturation and a lack of mobile phone innovation mean the world has already hit "peak smartphone."
If smartphones have indeed peaked, Apple will need to conquer new markets to continue growing. Here are three markets that can drive Apple's stock higher.
1. Augmented reality
Augmented reality (AR) integrates computer-generated visual or audio content with the user's environment in real time. The integration can occur on a phone, car windshield, head-mounted display, or glasses. AR glasses were first made famous with the Google (part of Alphabet) Glass introduction in 2012. And ever since, companies from small start-ups to behemoth enterprises have worked on building viable AR products.
Many technology companies are predicting that AR will replace smartphones by 2030. For instance, Nokia CEO Pekka Lundmark expects the most common mobile interface to be AR by decade's end.
Additionally, experts project the market to be massive. For example, Grand View Research estimates that the AR market will grow to $597.54 billion by 2030. And in comparison, the entire smartphone market was $378.29 billion in 2020, according to Market Data Forecast. If AR forecasts become true, Apple must eventually replace the iPhone with a dominant AR platform or potentially become irrelevant.
Although no one has confirmed that the company is working on AR, Apple CEO Tim Cook mentioned it in several interviews and presentations. In a recent interview with China Daily, Cook said that AR technology is in the early innings and to stay tuned about what Apple offers. Moreover, MacRumors' website says there is scuttlebutt that Apple has a secret team of hundreds of workers working on AR projects. And the website says Apple has plans to introduce a headset product in 2023, followed by an AR glass product later.
2. Payments
The company first dipped its toes into the payments industry in 2014 with the creation of Apple Pay to facilitate cashless and cardless payments in apps, online, and in physical stores. Apple Pay generates revenues in two ways.
First, Apple allows users to transfer money from their Apple Cash card to a bank account or debit card within one to three business days for free or use instant transfer for a 1.5% fee per transfer.
Second, during purchases from stores, it gains a cut of the interchange fee, the money merchants pay to accept credit cards. Analysts believe that Apple gets paid 0.15% of each purchase. This slice of the pie might not sound like much. However, data company Statista projects the total transaction value for digital payments to reach $8.49 trillion in 2022 and grow to $15.17 trillion by 2027, signaling significant revenue potential.
Although Apple has the most prominent mobile wallet in the U.S. at 48% market share, it only makes up 5.8% of in-store checkouts. Debit and credit cards have the largest market share at 44% and 27%, respectively, while cash still makes up 19%, according to the website PYMNTS. Therefore, Apple is betting it can grab a significant percentage of market share from cards and cash over time.
3. Healthcare
Apple opened its foray into health in 2014 by introducing a health informatics mobile (mHealth) app. The app has applications in heart health, sleep, respiratory, mobility, hearing health, fitness activity, and many other areas. Apple uses the data collected from the app to help users track their health, enable researchers to make new scientific discoveries, and help support public health initiatives, among other things.
The opportunity in health is enormous. Market research company Fortune Business Insights estimated the global mHealth apps market at $38.89 billion in 2021, growing to $314.60 billion by 2028 -- a compound annual growth rate of 34.8% during the forecast period. Additionally, Tim Cook once said in a 2016 interview that the healthcare market's potential could dwarf the smartphone market, which today accounts for 52% of Apple's 2021 revenue.
Apple faces significant competition
Apple's biggest risk is that it likely won't enjoy the same technological lead it had when it first introduced the iPhone. The company could face products and services just as good as its own in AR, payments, and healthcare.
However, Apple's most significant competitive advantage is that its ecosystem contains user data and content that is costly to switch to a competing platform. Thus, once a user starts using its ecosystem, they are reluctant to switch to a competitor's platform, even if a competitor should manage to provide an equivalent or better user experience.
Additionally, the company has a strong brand worldwide and should continue attracting new users to its platform. Therefore, a wise person might bet on Apple's dominance in any markets it enters, resulting in continued substantial profits for investors.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Rob Starks Jr has positions in Alphabet (A shares). The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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The iPhone will likely continue to be a significant part of the Apple (NASDAQ: AAPL) business in the near and medium term. In a recent interview with China Daily, Cook said that AR technology is in the early innings and to stay tuned about what Apple offers. However, Apple's most significant competitive advantage is that its ecosystem contains user data and content that is costly to switch to a competing platform.
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The iPhone will likely continue to be a significant part of the Apple (NASDAQ: AAPL) business in the near and medium term. Augmented reality Augmented reality (AR) integrates computer-generated visual or audio content with the user's environment in real time. First, Apple allows users to transfer money from their Apple Cash card to a bank account or debit card within one to three business days for free or use instant transfer for a 1.5% fee per transfer.
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The iPhone will likely continue to be a significant part of the Apple (NASDAQ: AAPL) business in the near and medium term. First, Apple allows users to transfer money from their Apple Cash card to a bank account or debit card within one to three business days for free or use instant transfer for a 1.5% fee per transfer. Additionally, Tim Cook once said in a 2016 interview that the healthcare market's potential could dwarf the smartphone market, which today accounts for 52% of Apple's 2021 revenue.
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The iPhone will likely continue to be a significant part of the Apple (NASDAQ: AAPL) business in the near and medium term. If smartphones have indeed peaked, Apple will need to conquer new markets to continue growing. Additionally, Tim Cook once said in a 2016 interview that the healthcare market's potential could dwarf the smartphone market, which today accounts for 52% of Apple's 2021 revenue.
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19022.0
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2022-10-05 00:00:00 UTC
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Technology Sector Update for 10/05/2022: CTSH, LOGI, AAPL, XLK, SOXX
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-10-05-2022%3A-ctsh-logi-aapl-xlk-soxx
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Technology stocks were slipping pre-bell Wednesday. The Technology Select Sector SPDR ETF (XLK) and the Semiconductor Sector Index Fund (SOXX) were recently down more than 1%.
Cognizant Technology Solutions (CTSH) was climbing nearly 3% after saying it has broadened its relationship with Centrica to deliver services including application testing and management of its IT infrastructure landscape.
Logitech (LOGI) launched its new multiple-angle tabletop camera product for organizations with a "hybrid" work configuration. Logitech was almost 2% lower recently.
Apple (AAPL) has requested suppliers shift the production of some AirPods and Beats headphones to India, as part of its gradual diversification from China, Nikkei Asia reported, citing people familiar with the matter. Apple was down more than 1% recently.
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) has requested suppliers shift the production of some AirPods and Beats headphones to India, as part of its gradual diversification from China, Nikkei Asia reported, citing people familiar with the matter. Cognizant Technology Solutions (CTSH) was climbing nearly 3% after saying it has broadened its relationship with Centrica to deliver services including application testing and management of its IT infrastructure landscape. Logitech (LOGI) launched its new multiple-angle tabletop camera product for organizations with a "hybrid" work configuration.
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Apple (AAPL) has requested suppliers shift the production of some AirPods and Beats headphones to India, as part of its gradual diversification from China, Nikkei Asia reported, citing people familiar with the matter. The Technology Select Sector SPDR ETF (XLK) and the Semiconductor Sector Index Fund (SOXX) were recently down more than 1%. Logitech was almost 2% lower recently.
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Apple (AAPL) has requested suppliers shift the production of some AirPods and Beats headphones to India, as part of its gradual diversification from China, Nikkei Asia reported, citing people familiar with the matter. The Technology Select Sector SPDR ETF (XLK) and the Semiconductor Sector Index Fund (SOXX) were recently down more than 1%. Cognizant Technology Solutions (CTSH) was climbing nearly 3% after saying it has broadened its relationship with Centrica to deliver services including application testing and management of its IT infrastructure landscape.
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Apple (AAPL) has requested suppliers shift the production of some AirPods and Beats headphones to India, as part of its gradual diversification from China, Nikkei Asia reported, citing people familiar with the matter. Technology stocks were slipping pre-bell Wednesday. Logitech was almost 2% lower recently.
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19023.0
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2022-10-05 00:00:00 UTC
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Apple asks suppliers to shift some AirPods, Beats production to India - Nikkei
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AAPL
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https://www.nasdaq.com/articles/apple-asks-suppliers-to-shift-some-airpods-beats-production-to-india-nikkei
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nan
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nan
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Adds details from Nikkei report, background
Oct 5 (Reuters) - Apple Inc AAPL.O is asking its suppliers to move some AirPods and Beats headphone production to India for the first time, Nikkei reported on Wednesday, in what could be an another win for New Delhi in its push for local manufacturing.
Apple iPhone assembler Foxconn 2317.TW is preparing to make Beats headphones in India and hopes to eventually produce AirPods in the country as well, the report said, citing sources.
Luxshare Precision Industry 002475.SZ, a Chinese supplier to the iPhone maker, and its units also plan to help Apple make AirPods in India, according to the report.
However, Luxshare is focusing more on its Vietnamese AirPods operations for now and could be slower than its competitors in starting meaningful production of Apple products in India, the Nikkei newspaper said.
Apple did not immediately respond to a Reuters' request for comment.
The tech giant has been shifting some areas of iPhone production from China to other markets, including India, where it started manufacturing iPhone 13 earlier this year, and is also planning to assemble iPad tablets. The company announced last week its plans to manufacture the latest iPhone 14 in India.
A Bloomberg News report from Tuesday said iPhone exports from India crossed $1 billion in five months since April and are set to reach $2.5 billion in the 12 months through March 2023.
Apple's latest move is part of its gradual diversification from China, the Nikkei report said. India and other countries such as Mexico and Vietnam are increasingly turning important to contract manufacturers supplying to American brands amid COVID-related lockdowns in China and simmering tensions between Washington and Beijing.
(Reporting by Ann Maria Shibu in Bengaluru; Editing by Subhranshu Sahu)
((AnnMaria.Shibu@thomsonreuters.com; +1 646 223 8780; + 91 80 6749 2795;))
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 details from Nikkei report, background Oct 5 (Reuters) - Apple Inc AAPL.O is asking its suppliers to move some AirPods and Beats headphone production to India for the first time, Nikkei reported on Wednesday, in what could be an another win for New Delhi in its push for local manufacturing. Apple iPhone assembler Foxconn 2317.TW is preparing to make Beats headphones in India and hopes to eventually produce AirPods in the country as well, the report said, citing sources. Luxshare Precision Industry 002475.SZ, a Chinese supplier to the iPhone maker, and its units also plan to help Apple make AirPods in India, according to the report.
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Adds details from Nikkei report, background Oct 5 (Reuters) - Apple Inc AAPL.O is asking its suppliers to move some AirPods and Beats headphone production to India for the first time, Nikkei reported on Wednesday, in what could be an another win for New Delhi in its push for local manufacturing. Apple iPhone assembler Foxconn 2317.TW is preparing to make Beats headphones in India and hopes to eventually produce AirPods in the country as well, the report said, citing sources. However, Luxshare is focusing more on its Vietnamese AirPods operations for now and could be slower than its competitors in starting meaningful production of Apple products in India, the Nikkei newspaper said.
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Adds details from Nikkei report, background Oct 5 (Reuters) - Apple Inc AAPL.O is asking its suppliers to move some AirPods and Beats headphone production to India for the first time, Nikkei reported on Wednesday, in what could be an another win for New Delhi in its push for local manufacturing. Apple iPhone assembler Foxconn 2317.TW is preparing to make Beats headphones in India and hopes to eventually produce AirPods in the country as well, the report said, citing sources. Luxshare Precision Industry 002475.SZ, a Chinese supplier to the iPhone maker, and its units also plan to help Apple make AirPods in India, according to the report.
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Adds details from Nikkei report, background Oct 5 (Reuters) - Apple Inc AAPL.O is asking its suppliers to move some AirPods and Beats headphone production to India for the first time, Nikkei reported on Wednesday, in what could be an another win for New Delhi in its push for local manufacturing. Apple iPhone assembler Foxconn 2317.TW is preparing to make Beats headphones in India and hopes to eventually produce AirPods in the country as well, the report said, citing sources. Apple did not immediately respond to a Reuters' request for comment.
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19024.0
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2022-10-05 00:00:00 UTC
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US STOCKS-Wall Street set to decline as rally in growth stocks falter
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-set-to-decline-as-rally-in-growth-stocks-falter
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nan
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nan
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By Ankika Biswas and Bansari Mayur Kamdar
Oct 5 (Reuters) - Wall Street was set to open lower on Wednesday due to weakness in megacap growth and technology stocks as Treasury yields rose, spurred by data that showed a resilient demand for labor despite rising interest rates.
After posting a loss in the previous quarter, the benchmark S&P 500 index has gained 5.7% so far this week as yields fell for two straight sessions on softer U.S. economic data, UK's tax turnaround and Australia's smaller-than-expected rate hike. .N
But the yields on the 10-year Treasury note US10YT=RR rose again sharply as traders reassessed their positions based on how aggressively they expect the Federal Reserve will raise rates. US/
Adding to the boost, ADP data showed U.S. private employers stepped up hiring in September, indicating more room for the Federal Reserve to remain aggressive in its rate hike stance.
"It's a little bit more jobs being created or opened than the market was expecting and that leads to the belief that the Fed is not going to be pivoting in November," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
"A lot of the rally that occurred over the last two days was based on a market that was extremely oversold and a little bit of a believe that the Fed would pivot in November."
The private payrolls report comes ahead of a more comprehensive and closely watched employment report from the Labor Department for September on Friday.
Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell nearly 1% each in trading before the bell.
At 08:42 a.m. ET, Dow e-minis 1YMcv1 were down 275 points, or 0.91%, S&P 500 e-minis EScv1 were down 34.75 points, or 0.91%, and Nasdaq 100 e-minis NQcv1 were down 111.5 points, or 0.96%.
Twitter Inc TWTR.N lost momentum in line with its peers, a day after surging 22% after billionaire Elon Musk decided to proceed with his original $44-billion bid to take the social media company private.
Banks such as Citigroup C.N and JPMorgan Chase & Co JPM.N slipped 1.2%.
Emerson Electric Co EMR.N gained 1.7% after a media report that the manufacturing giant is in talks with U.S. buyout firm Blackstone Inc BLK.N to sell part of its commercial and residential solution business assets.
Shares of U.S.-listed Chinese companies including Alibaba Group BABA.N and JD.com JD.O were up between 0.8% to 2.7%, tracking a jump in their Hong Kong counterparts.
Investors awaited ISM's non-manufacturing PMI for clues on the strength of the U.S. economy. They were also keeping a close watch on comments on inflation from the Fed's Atlanta President Raphel Bostic, as several policymakers stick to an aggressive monetary policy.
(Reporting by Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Arun Koyyur)
((Ankika.Biswas@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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Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell nearly 1% each in trading before the bell. By Ankika Biswas and Bansari Mayur Kamdar Oct 5 (Reuters) - Wall Street was set to open lower on Wednesday due to weakness in megacap growth and technology stocks as Treasury yields rose, spurred by data that showed a resilient demand for labor despite rising interest rates. After posting a loss in the previous quarter, the benchmark S&P 500 index has gained 5.7% so far this week as yields fell for two straight sessions on softer U.S. economic data, UK's tax turnaround and Australia's smaller-than-expected rate hike.
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Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell nearly 1% each in trading before the bell. By Ankika Biswas and Bansari Mayur Kamdar Oct 5 (Reuters) - Wall Street was set to open lower on Wednesday due to weakness in megacap growth and technology stocks as Treasury yields rose, spurred by data that showed a resilient demand for labor despite rising interest rates. US/ Adding to the boost, ADP data showed U.S. private employers stepped up hiring in September, indicating more room for the Federal Reserve to remain aggressive in its rate hike stance.
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Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell nearly 1% each in trading before the bell. By Ankika Biswas and Bansari Mayur Kamdar Oct 5 (Reuters) - Wall Street was set to open lower on Wednesday due to weakness in megacap growth and technology stocks as Treasury yields rose, spurred by data that showed a resilient demand for labor despite rising interest rates. After posting a loss in the previous quarter, the benchmark S&P 500 index has gained 5.7% so far this week as yields fell for two straight sessions on softer U.S. economic data, UK's tax turnaround and Australia's smaller-than-expected rate hike.
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Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell nearly 1% each in trading before the bell. By Ankika Biswas and Bansari Mayur Kamdar Oct 5 (Reuters) - Wall Street was set to open lower on Wednesday due to weakness in megacap growth and technology stocks as Treasury yields rose, spurred by data that showed a resilient demand for labor despite rising interest rates. After posting a loss in the previous quarter, the benchmark S&P 500 index has gained 5.7% so far this week as yields fell for two straight sessions on softer U.S. economic data, UK's tax turnaround and Australia's smaller-than-expected rate hike.
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19025.0
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2022-10-05 00:00:00 UTC
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Should Fidelity Nasdaq Composite Index ETF (ONEQ) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-fidelity-nasdaq-composite-index-etf-oneq-be-on-your-investing-radar-3
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Launched on 09/25/2003, the Fidelity Nasdaq Composite Index ETF (ONEQ) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Fidelity. It has amassed assets over $3.76 billion, making it one of the larger 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. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Further, growth stocks have a higher level of volatility associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
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 0.21%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.84%.
Sector Exposure and Top Holdings
ETFs offer a 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 to the Information Technology sector--about 43.80% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 51.69% of total assets under management.
Performance and Risk
ONEQ seeks to match the performance of the NASDAQ Composite Index before fees and expenses. The NASDAQ Composite TR USD is the market capitalization-weighted index of over 3,300 common equities listed on the Nasdaq stock exchange.
The ETF has lost about -28.62% so far this year and is down about -20.40% in the last one year (as of 10/05/2022). In the past 52-week period, it has traded between $41.44 and $62.46.
The ETF has a beta of 1.13 and standard deviation of 27.79% for the trailing three-year period, making it a medium risk choice in the space. With about 1011 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity Nasdaq Composite 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, ONEQ is a good option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $70.16 billion in assets, Invesco QQQ has $155.59 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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Fidelity Nasdaq Composite Index ETF (ONEQ): 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
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 13.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 09/25/2003, the Fidelity Nasdaq Composite Index ETF (ONEQ) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 09/25/2003, the Fidelity Nasdaq Composite Index ETF (ONEQ) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 09/25/2003, the Fidelity Nasdaq Composite Index ETF (ONEQ) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.28% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 09/25/2003, the Fidelity Nasdaq Composite Index ETF (ONEQ) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
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19026.0
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2022-10-05 00:00:00 UTC
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How Much Could This Catalyst Boost Shiba Inu in October?
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AAPL
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https://www.nasdaq.com/articles/how-much-could-this-catalyst-boost-shiba-inu-in-october
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nan
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Shiba Inu (CRYPTO: SHIB) was the star performer of 2021, not just in cryptocurrency, but across the financial world as a whole. It made history with a gain of 43,800,000% for the year, which could have turned you into a millionaire for the price of a cup of coffee -- if your timing was perfect.
But 2022 hasn't been so positive. In fact, the price-per-Shiba Inu token has plunged by about 69% for the year so far. There's a long list of reasons for the pivot in investor sentiment, including a broad sell-off in high-risk assets and the fact that Shiba Inu has failed to garner mass adoption.
The community is working on several initiatives to help resurrect the token's value, but nothing has made a material impact thus far. But if there's one thing that could drum up some momentum this month, it's the release of a particular new game on Oct. 6.
Image source: Getty Images.
Enter Shiba Eternity
The new game is titled Shiba Eternity, and it will be available on mobile devices through Apple's App Store and Alphabet's Play Store. It's a collectible card game (digital cards, of course), which will allow players to battle each other in a concept not dissimilar to other card-based games like Yu-Gi-Oh! or Pokémon.
Each player will be granted a Shiboshi -- a digital Shiba Inu dog-like avatar -- which they'll need to protect from incurring damage in each clash. The general structure of the game could allow for competitive tournaments in the future and the chance to win prizes.
Owning Shiba Inu tokens isn't a requirement to participate, but there is hope the game becomes popular enough to generate some interest in the token that started it all. However, Shytoshi Kusama, who is considered the lead developer of Shiba Inu, recently revealed that 5% of the proceeds earned from the game will be burned -- a mechanism that removes Shiba Inu tokens from circulation forever.
The burn is Shiba Inu's last shot at redemption
Shiba Eternity is just the latest in a series of interactive, entertaining ways to reduce the number of Shiba Inu tokens in supply. Why? Because right now, there are over 590 trillion of them which is hindering its ability to appreciate in value. One Shiba Inu token costs just $0.000011 to buy as of this writing, and it would be virtually impossible to reach a more typical price of $1, for example.
If that were to happen, Shiba Inu would have a total value of $590 trillion, making it the most valuable asset in the entire world. Not even the most bullish investors consider that to be a likely outcome.
Therefore, the only way the token could reach a level like $1 is by significantly reducing the number of them in circulation, though roughly 99.9998% of them would have to vanish to make that a reality. The community can help the burn initiative by simply sending Shiba Inu tokens to a "dead wallet," or they could transact with a participating business like the Shiba Coffee Co., which burns a portion of its profits.
But in any case, at the current average daily burn rate, it could take thousands of years to remove enough tokens to generate a meaningful price boost. And even if it happens, it won't actually result in an increase in value for investors because they'll simply own fewer tokens with a higher per-token value, leaving their net position the same.
That's not the only challenge facing Shiba Inu
The list of hurdles Shiba Inu has to clear for a recovery continues to grow. Neither consumers nor businesses have adopted the token as a means of payment in any real capacity, with just 659 merchants worldwide accepting it in exchange for goods and services. If people can't use a currency to buy the things they want, then they have no reason to invest in or hold it.
Plus, a myriad of new regulations could be on the horizon, which will make investors much more apprehensive about owning cryptocurrencies in general. Just this week, world-famous influencer Kim Kardashian was accused by the Securities and Exchange Commission (SEC) of promoting a cryptocurrency using social media without disclosing that she was paid to do so. She was hit with a fine of $1.26 million and won't further promote any tokens for at least three years.
A crackdown on promotional marketing could hurt awareness campaigns for new initiatives driven by the Shiba Inu community.
But that's not all. Many cryptocurrencies will now be classed as securities, meaning exchanges and brokers will have to abide by strict audit and compliance rules, which will increase the cost of trading for all investors. Those same dealers must report their clients' trading activity to the Internal Revenue Service (IRS) from 2023 onwards, so investors may have lost the ability to remain anonymous and will be liable for taxes every time they sell, exchange, or spend their tokens at a profit.
What does all of this have to do with Shiba Eternity? Well, the game might spark some enthusiasm among the Shiba Inu community, and it may even draw some new investors to the token upon launch this month, but it's unlikely to lead to a sustained recovery in the long run.
10 stocks we like better than Shiba Inu
When our award-winning 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 Shiba Inu 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 September 30, 2022
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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There's a long list of reasons for the pivot in investor sentiment, including a broad sell-off in high-risk assets and the fact that Shiba Inu has failed to garner mass adoption. Those same dealers must report their clients' trading activity to the Internal Revenue Service (IRS) from 2023 onwards, so investors may have lost the ability to remain anonymous and will be liable for taxes every time they sell, exchange, or spend their tokens at a profit. Well, the game might spark some enthusiasm among the Shiba Inu community, and it may even draw some new investors to the token upon launch this month, but it's unlikely to lead to a sustained recovery in the long run.
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The community can help the burn initiative by simply sending Shiba Inu tokens to a "dead wallet," or they could transact with a participating business like the Shiba Coffee Co., which burns a portion of its profits. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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However, Shytoshi Kusama, who is considered the lead developer of Shiba Inu, recently revealed that 5% of the proceeds earned from the game will be burned -- a mechanism that removes Shiba Inu tokens from circulation forever. The burn is Shiba Inu's last shot at redemption Shiba Eternity is just the latest in a series of interactive, entertaining ways to reduce the number of Shiba Inu tokens in supply. The community can help the burn initiative by simply sending Shiba Inu tokens to a "dead wallet," or they could transact with a participating business like the Shiba Coffee Co., which burns a portion of its profits.
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But 2022 hasn't been so positive. The burn is Shiba Inu's last shot at redemption Shiba Eternity is just the latest in a series of interactive, entertaining ways to reduce the number of Shiba Inu tokens in supply. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Shiba Inu wasn't one of them!
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19027.0
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2022-10-05 00:00:00 UTC
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US STOCKS-Megacap stocks lose ground as yields rise, economic data awaited
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AAPL
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https://www.nasdaq.com/articles/us-stocks-megacap-stocks-lose-ground-as-yields-rise-economic-data-awaited
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nan
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By Ankika Biswas
Oct 5 (Reuters) - U.S. stock index futures fell on Wednesday ahead of key economic data as rising Treasury yields spurred selling in megacap growth stocks, with recession fears from aggressive central bank rate hikes weighing on risk appetite.
After posting a loss in the previous quarter, the benchmark S&P 500 index has gained 5.7% so far this week as yields fell for two straight sessions on softer U.S. economic data, UK's tax turnaround and Australia's smaller-than-expected rate hike. .N
But as traders reassessed their positions based on how aggressively they expect the Federal Reserve will raise rates, yields on the 10-year Treasury note US10YT=RR rose sharply. US/
Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell between 0.7% and 0.9% in premarket trading.
Twitter Inc TWTR.N also lost momentum in line with its peers, a day after surging 22% after billionaire Elon Musk decided to proceed with his original $44-billion bid to take the social media company private.
Banks such as Citigroup C.N and JPMorgan Chase & Co JPM.N slipped more than 1% each.
Investors awaited the ADP's private payrolls report, the S&P services PMI data and ISM's non-manufacturing PMI for clues on the strength of the U.S. economy and labor market.
Investors are also keeping a close watch on comments on inflation from the Fed's Atlanta President Raphel Bostic, especially as several policymakers are already sticking to an aggressive monetary policy to battle price pressures.
At 06:43 a.m. ET, Dow e-minis 1YMcv1 were down 223 points, or 0.73%, S&P 500 e-minis EScv1 were down 27.25 points, or 0.72%, and Nasdaq 100 e-minis NQcv1 were down 82 points, or 0.7%.
Emerson Electric Co EMR.N gained 2.2% after a media report that the manufacturing giant is in talks with U.S. buyout firm Blackstone Inc BLK.N to sell part of its commercial and residential solution business assets.
Shares of U.S.-listed Chinese companies including Alibaba Group BABA.N and JD.com JD.O were up between 1.5% to 3.2%, tracking a jump in their Hong Kong counterparts.
(Reporting by Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Arun Koyyur)
((Ankika.Biswas@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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US/ Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell between 0.7% and 0.9% in premarket trading. After posting a loss in the previous quarter, the benchmark S&P 500 index has gained 5.7% so far this week as yields fell for two straight sessions on softer U.S. economic data, UK's tax turnaround and Australia's smaller-than-expected rate hike. Investors are also keeping a close watch on comments on inflation from the Fed's Atlanta President Raphel Bostic, especially as several policymakers are already sticking to an aggressive monetary policy to battle price pressures.
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US/ Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell between 0.7% and 0.9% in premarket trading. By Ankika Biswas Oct 5 (Reuters) - U.S. stock index futures fell on Wednesday ahead of key economic data as rising Treasury yields spurred selling in megacap growth stocks, with recession fears from aggressive central bank rate hikes weighing on risk appetite. Twitter Inc TWTR.N also lost momentum in line with its peers, a day after surging 22% after billionaire Elon Musk decided to proceed with his original $44-billion bid to take the social media company private.
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US/ Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell between 0.7% and 0.9% in premarket trading. By Ankika Biswas Oct 5 (Reuters) - U.S. stock index futures fell on Wednesday ahead of key economic data as rising Treasury yields spurred selling in megacap growth stocks, with recession fears from aggressive central bank rate hikes weighing on risk appetite. After posting a loss in the previous quarter, the benchmark S&P 500 index has gained 5.7% so far this week as yields fell for two straight sessions on softer U.S. economic data, UK's tax turnaround and Australia's smaller-than-expected rate hike.
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US/ Rate-sensitive technology and related stocks like Nvidia Corp NVDA.O, Amazon.com AMZN.O, Apple Inc AAPL.O and Alphabet Inc GOOGL.O fell between 0.7% and 0.9% in premarket trading. By Ankika Biswas Oct 5 (Reuters) - U.S. stock index futures fell on Wednesday ahead of key economic data as rising Treasury yields spurred selling in megacap growth stocks, with recession fears from aggressive central bank rate hikes weighing on risk appetite. Twitter Inc TWTR.N also lost momentum in line with its peers, a day after surging 22% after billionaire Elon Musk decided to proceed with his original $44-billion bid to take the social media company private.
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19028.0
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2022-10-05 00:00:00 UTC
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Better Buy: Alphabet vs. Apple
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-alphabet-vs.-apple
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nan
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As two of the most valuable companies in the world, you can't go wrong with adding shares of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) or Apple (NASDAQ: AAPL) to your portfolio. Both businesses have seen their stock prices rise over 100% in the last five years, despite the pandemic and a recent decline in consumer demand.
Although these companies have seen significant gains over the past five years, the tech sector has fallen out of favor in 2022, which has led Apple's and Alphabet's stocks to lose 17% and 29%, respectively, since January. With shares on sale, many investors are eyeing these two companies.
While Alphabet's and Apple's stocks are each likely to grow further over the next several years, one is undoubtedly the better choice. Let's assess.
Alphabet: An advertising titan
As Google's parent company, Alphabet is home to some of the world's most recognizable brands, including Android, Chrome, YouTube, Google Maps, and, of course, its Google search engine. The company's Google services segment comprises revenue from all of these platforms, mainly driven by ad revenue. As a result, Alphabet has held a majority market share in digital advertising since 2016, outshining companies such as Meta Platforms, Amazon, and Alibaba.
Advertising made up about 90% of Alphabet's revenue in the second quarter of 2022, with 6.6% coming from its cloud business. Digital advertising has been a lucrative business for years, but with companies such as Netflix and Disney getting into the game with the introduction of streaming ad-supported tiers, demand is likely to continue for years to come. In fact, U.S. digital ad spending is expected to hit $239.89 billion in 2022 and rise 31% to $315.32 billion by 2025.
Moreover, Alphabet has been making headway in the $203.5 billion cloud market, holding the third-largest market share, with 10% as of Q2 2022. The industry is currently dominated by Amazon Web Services, which has a 34% market share, but Alphabet has slowly expanded its slice each year, having just a 6% share in Q4 2019. Alphabet's Google Cloud revenue is relatively small, but it has been steadily growing each year. From 2018 to 2021, segment sales rose from $5.8 billion to $19.2 billion and totaled $12.1 billion in the first six months of 2022.
Alphabet's share price may have fallen significantly over the last few months, but its financials tell a different story. The economy could be on the brink of a recession, but that doesn't stop Alphabet from being a great long-term buy, as its business has the strength to reclaim its losses.
Apple: Home of the all-powerful iPhone
On Sept. 29, Bank of America analyst Wamsi Mohan revised his recommendation for Apple's stock from buy to neutral. Mohan cited "weaker consumer demand" for the downgrade, leading the company's share price to fall 5.1%.
Apple has been seen as a relatively safe area of the slumping tech market, as its stock has sunk 17% year to date versus the Nasdaq-100 Technology Sector index's 29% nosedive in the same period. The MacBook manufacturer has managed to stave off the worst of the market's declines, but future earnings are questionable after the launch of its new lineup of iPhones on Sept. 7.
This year's iPhone 14 saw Apple widen the gap between its Pro and base models, leading to record sales of the Pro versions as consumers opted for their exclusive features. However, it has also led to reports that the base models have seen a steep decline in sales. They had been the best-selling part of the lineup in previous years. As a result, Mohan stated he doesn't believe the iPhone 14 Pro and Pro Max will sell enough to offset decreases in revenue if overall unit sales tumble.
For the last decade, iPhone sales have made up between 40% to 70% of Apple's revenue, hitting 49% in its most recent quarter of 2022. Analysts are right to be concerned about a potential dip in iPhone sales because its smartphone business is truly its bread and butter.
Should you buy Alphabet or Apple stock?
Apple is one of the most valuable companies in the world by market cap, with a clever business model that pulls consumers deeper and deeper into its ecosystem of products with just one purchase. Its share price has managed to fare better than many other tech stocks in 2022, but the iPhone 14 could spell trouble for the company in the coming year.
On the other hand, Alphabet's Google services and Cloud segment have produced promising growth and seem capable of pushing through market declines. There's a chance its ad revenue could fall if a recession hits, but its businesses are so varied that the company is still a solid long-term buy.
Moreover, Alphabet's price-to-earnings ratio is currently 31% below what it was a year ago and sits at an all-time low. Meanwhile, Apple's is 10% lower than last year and double its all-time low in 2019, cementing Alphabet's stock as a better value and a better buy.
10 stocks we like better than Alphabet (C shares)
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Alphabet (C shares) 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 September 30, 2022
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. Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, 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 (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Netflix, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on 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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As two of the most valuable companies in the world, you can't go wrong with adding shares of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) or Apple (NASDAQ: AAPL) to your portfolio. Although these companies have seen significant gains over the past five years, the tech sector has fallen out of favor in 2022, which has led Apple's and Alphabet's stocks to lose 17% and 29%, respectively, since January. As a result, Alphabet has held a majority market share in digital advertising since 2016, outshining companies such as Meta Platforms, Amazon, and Alibaba.
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As two of the most valuable companies in the world, you can't go wrong with adding shares of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) or Apple (NASDAQ: AAPL) to your portfolio. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Netflix, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple.
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As two of the most valuable companies in the world, you can't go wrong with adding shares of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) or Apple (NASDAQ: AAPL) to your portfolio. Although these companies have seen significant gains over the past five years, the tech sector has fallen out of favor in 2022, which has led Apple's and Alphabet's stocks to lose 17% and 29%, respectively, since January. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Netflix, and Walt Disney.
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As two of the most valuable companies in the world, you can't go wrong with adding shares of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) or Apple (NASDAQ: AAPL) to your portfolio. Should you buy Alphabet or Apple stock? That's right -- they think these 10 stocks are even better buys.
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19029.0
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2022-10-05 00:00:00 UTC
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Should Vanguard S&P 500 ETF (VOO) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-sp-500-etf-voo-be-on-your-investing-radar-4
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nan
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Launched on 09/09/2010, the Vanguard S&P 500 ETF (VOO) 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 Vanguard. It has amassed assets over $252.08 billion, making it one of the largest 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. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.67%.
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 26.90% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.15% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 28.15% of total assets under management.
Performance and Risk
VOO seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index measures the performance of the large-capitalization sector of the U.S. equity market.
The ETF has lost about -19.98% so far this year and is down about -10.45% in the last one year (as of 10/05/2022). In the past 52-week period, it has traded between $328.30 and $439.25.
The ETF has a beta of 1 and standard deviation of 24.60% for the trailing three-year period, making it a medium risk choice in the space. With about 505 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P 500 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, VOO is a reasonable 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 the same index. While iShares Core S&P 500 ETF has $283.91 billion in assets, SPDR S&P 500 ETF has $346.33 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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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Vanguard S&P 500 ETF (VOO): ETF Research Reports
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
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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 7.15% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 09/09/2010, the Vanguard S&P 500 ETF (VOO) 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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Apple Inc. (AAPL): Free Stock Analysis Report Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.15% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). 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.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 7.15% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Vanguard S&P 500 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 7.15% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
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19030.0
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2022-10-05 00:00:00 UTC
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SoftBank makes no Arm investment proposal to Samsung-report
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AAPL
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https://www.nasdaq.com/articles/softbank-makes-no-arm-investment-proposal-to-samsung-report
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nan
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SEOUL, Oct 5 (Reuters) - SoftBank Group Corp 9984.T founder and CEO Masayoshi Son discussed on Tuesday a long-term cooperation between chip designer Arm and Samsung Electronics 005930.KS, but did not propose the South Korean firm to invest in the British company, a local media reported on Wednesday.
The billionaire, who is making his first visit to Seoul in three years, said earlier that he'd like to talk with Samsung 005930.KS about a "strategic alliance with Arm".
The visit comes amid speculation over the potential formation of an industry consortium to invest in Arm, whose technology powers Apple's AAPL.O iPhone and nearly all other smartphones, and ensure its neutrality.
At a meeting held on Tuesday which Arm Chief Executive Rene Haas also attended, Son did not propose that Samsung buy a stake in Arm or make a pre-IPO investment, the JoongAng daily newspaper reported on Wednesday, citing unnamed industry sources.
SoftBank did not immediately reply to a Reuters' request for comment. Samsung declined to comment.
SoftBank acquired Arm in 2016 for $32 billion. A subsequent proposed deal to sell it to Nvidia NVDA.O aroused industry opposition and foundered on regulatory hurdles, prompting SoftBank to outline plans for a U.S. listing of the Cambridge-based firm.
(Reporting by Joyce Lee, Editing by Louise Heavens)
((miyoung.kim@thomsonreuters.com; 65 6870 3026; Reuters Messaging: miyoung.kim.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 visit comes amid speculation over the potential formation of an industry consortium to invest in Arm, whose technology powers Apple's AAPL.O iPhone and nearly all other smartphones, and ensure its neutrality. SEOUL, Oct 5 (Reuters) - SoftBank Group Corp 9984.T founder and CEO Masayoshi Son discussed on Tuesday a long-term cooperation between chip designer Arm and Samsung Electronics 005930.KS, but did not propose the South Korean firm to invest in the British company, a local media reported on Wednesday. A subsequent proposed deal to sell it to Nvidia NVDA.O aroused industry opposition and foundered on regulatory hurdles, prompting SoftBank to outline plans for a U.S. listing of the Cambridge-based firm.
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The visit comes amid speculation over the potential formation of an industry consortium to invest in Arm, whose technology powers Apple's AAPL.O iPhone and nearly all other smartphones, and ensure its neutrality. SEOUL, Oct 5 (Reuters) - SoftBank Group Corp 9984.T founder and CEO Masayoshi Son discussed on Tuesday a long-term cooperation between chip designer Arm and Samsung Electronics 005930.KS, but did not propose the South Korean firm to invest in the British company, a local media reported on Wednesday. The billionaire, who is making his first visit to Seoul in three years, said earlier that he'd like to talk with Samsung 005930.KS about a "strategic alliance with Arm".
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The visit comes amid speculation over the potential formation of an industry consortium to invest in Arm, whose technology powers Apple's AAPL.O iPhone and nearly all other smartphones, and ensure its neutrality. SEOUL, Oct 5 (Reuters) - SoftBank Group Corp 9984.T founder and CEO Masayoshi Son discussed on Tuesday a long-term cooperation between chip designer Arm and Samsung Electronics 005930.KS, but did not propose the South Korean firm to invest in the British company, a local media reported on Wednesday. At a meeting held on Tuesday which Arm Chief Executive Rene Haas also attended, Son did not propose that Samsung buy a stake in Arm or make a pre-IPO investment, the JoongAng daily newspaper reported on Wednesday, citing unnamed industry sources.
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The visit comes amid speculation over the potential formation of an industry consortium to invest in Arm, whose technology powers Apple's AAPL.O iPhone and nearly all other smartphones, and ensure its neutrality. SEOUL, Oct 5 (Reuters) - SoftBank Group Corp 9984.T founder and CEO Masayoshi Son discussed on Tuesday a long-term cooperation between chip designer Arm and Samsung Electronics 005930.KS, but did not propose the South Korean firm to invest in the British company, a local media reported on Wednesday. The billionaire, who is making his first visit to Seoul in three years, said earlier that he'd like to talk with Samsung 005930.KS about a "strategic alliance with Arm".
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19031.0
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2022-10-05 00:00:00 UTC
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London's Battersea Power Station reborn as office and shopping hub
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AAPL
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https://www.nasdaq.com/articles/londons-battersea-power-station-reborn-as-office-and-shopping-hub-0
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nan
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By Sachin Ravikumar
LONDON, Oct 4 (Reuters) - 06:00London's Battersea Power Station reopens next week as a glitzy hub of offices, flats, restaurants and shops after decades of failed attempts to reinvigorate one of the capital's most iconic buildings, often described as the "Everest of real estate".
The 1930s power station once supplied a fifth of London's electricity, including to Buckingham Palace and parliament, but is better known for featuring alongside a floating inflatable pig on the cover of Pink Floyd's 1977 album "Animals".
The colossal brick building earned its reputation as one of London real estate's toughest challenges after a series of false starts, including an attempt to recreate it as a theme park.
Its 9-billion-pound ($10.2 billion) redevelopment, backed by a group of Malaysian investors, will see thousands of people living and working in and around the once-derelict station after its formal opening on Oct. 14.
Apple AAPL.O will become the largest office tenant, occupying six floors in the former central boiler house of the power station, known for its four white chimneys that dominate the skyline over the south bank of the River Thames.
About 96% of the commercial space has been filled up, Battersea Power Station Development Company boss Simon Murphy told reporters on Tuesday.
"It has taken a lot of hard work, determination, and the continued commitment of the Malaysian shareholders over the past ten years to bring Battersea Power Station back to its former glory," Murphy said, noting the cost of restoring the station was 2 million pounds per day at its peak.
The Battersea project, spread over an area the size of 32 soccer fields, got a major boost from the opening last year of a London Tube station a two-minute walk away, partly funded by the development company.
"Without the Tube, we wouldn't have brought our office occupiers, we wouldn't have brought the retailers," Murphy said. "Neither project could survive without the other."
The coal-fired power station was shut down completely in 1983.
Its redevelopment will see more than 250 apartments starting at 865,000 pounds apiece around the power station, in addition to commercial space that should bring in 100 million pounds of rent annually, Murphy said.
The project will also bring dozens of retailers including Zara, Hugo Boss and Ralph Lauren, besides restaurants including a 1950s-themed bar at the site of the station's Control Room B, replete with now-defunct mechanical switches and dials.
Indeed, much of the project has focused on retaining an industrial flavour, from its exposed brick walls and a large, rusty crane left hanging in the central hall, to escalators with transparent side panels displaying their inner machinery.
For views of London's skyline, visitors will be able to take a lift 109 metres up to the top of one of the chimneys, rebuilt over three years with 25,000 wheelbarrows of hand-poured concrete to match original design specifications.
"We want to make sure that people, when they come inside the building, they realise that this was a power station and don't think is a brand new building," said Sebastian Ricard, one of the architects involved in the redevelopment.
($1 = 0.8818 pounds)
(Reporting by Sachin Ravikumar; Editing by David Gregorio)
((saisachin.r@tr.com; Twitter: @sachinr27;))
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 will become the largest office tenant, occupying six floors in the former central boiler house of the power station, known for its four white chimneys that dominate the skyline over the south bank of the River Thames. By Sachin Ravikumar LONDON, Oct 4 (Reuters) - 06:00London's Battersea Power Station reopens next week as a glitzy hub of offices, flats, restaurants and shops after decades of failed attempts to reinvigorate one of the capital's most iconic buildings, often described as the "Everest of real estate". The Battersea project, spread over an area the size of 32 soccer fields, got a major boost from the opening last year of a London Tube station a two-minute walk away, partly funded by the development company.
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Apple AAPL.O will become the largest office tenant, occupying six floors in the former central boiler house of the power station, known for its four white chimneys that dominate the skyline over the south bank of the River Thames. About 96% of the commercial space has been filled up, Battersea Power Station Development Company boss Simon Murphy told reporters on Tuesday. "It has taken a lot of hard work, determination, and the continued commitment of the Malaysian shareholders over the past ten years to bring Battersea Power Station back to its former glory," Murphy said, noting the cost of restoring the station was 2 million pounds per day at its peak.
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Apple AAPL.O will become the largest office tenant, occupying six floors in the former central boiler house of the power station, known for its four white chimneys that dominate the skyline over the south bank of the River Thames. By Sachin Ravikumar LONDON, Oct 4 (Reuters) - 06:00London's Battersea Power Station reopens next week as a glitzy hub of offices, flats, restaurants and shops after decades of failed attempts to reinvigorate one of the capital's most iconic buildings, often described as the "Everest of real estate". "It has taken a lot of hard work, determination, and the continued commitment of the Malaysian shareholders over the past ten years to bring Battersea Power Station back to its former glory," Murphy said, noting the cost of restoring the station was 2 million pounds per day at its peak.
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Apple AAPL.O will become the largest office tenant, occupying six floors in the former central boiler house of the power station, known for its four white chimneys that dominate the skyline over the south bank of the River Thames. By Sachin Ravikumar LONDON, Oct 4 (Reuters) - 06:00London's Battersea Power Station reopens next week as a glitzy hub of offices, flats, restaurants and shops after decades of failed attempts to reinvigorate one of the capital's most iconic buildings, often described as the "Everest of real estate". About 96% of the commercial space has been filled up, Battersea Power Station Development Company boss Simon Murphy told reporters on Tuesday.
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19032.0
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2022-10-05 00:00:00 UTC
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All Signs Point to Warren Buffett Buying His Favorite Stock Again
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AAPL
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https://www.nasdaq.com/articles/all-signs-point-to-warren-buffett-buying-his-favorite-stock-again
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nan
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nan
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When Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett buys or sells a stock, everyone from Wall Street professionals to everyday investors pays close attention. That's because Buffett has an incredible investment track record that includes an average annual return of 20.1% for his company's Class A shares (BRK.A) since 1965.
While there are a number of reasons for Buffett's nearly six-decade outperformance of the major stock indexes, such as his love of cyclical businesses and dividend stocks, it's his opportunistic long-term approach to investing that might be his greatest not-so-secret weapon. With the understanding that every stock market correction and bear market decline throughout history has been a buying opportunity, Buffett uses big pullbacks in the broader market as an excuse to go shopping.
Through the first six months of 2022, Berkshire Hathaway bought or added to more than a dozen stocks. With all three major U.S. stock indexes firmly in a bear market, you can be certain Buffett is still on the offensive.
Image source: Getty Images.
Berkshire Hathaway's core holdings remain popular buys
For example, Buffett and his investment team were active buyers of tech stock Apple (NASDAQ: AAPL) in both the first and second quarters of 2022. Even though it already accounts for more than 41% of Berkshire Hathaway's $306 billion in invested assets, Buffett views Apple as a valuation pillar for his company.
Apple, which is the most-valuable brand in the world, according to Brand Finance, has an exceptionally loyal customer base and has leaned on innovation to drive its sales and profits higher. The company's iPhone, which accounts for around half of U.S. smartphone market share, is the perfect example of this.
Aside from Apple's ongoing transformation that emphasizes higher-margin subscription services, Buffett is a big fan of Apple's capital return program. In addition to doling out more than $14 billion annually in dividends, the company has repurchased in the neighborhood of $520 billion of its common stock since the beginning of 2013.
Buffett and his investing team have also used the bear market plunge to pile into energy stocks -- specifically Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY). The second quarter marked the first time this century Berkshire Hathaway had more than 10% of its invested assets tied up in the energy sector.
Buying shares of Chevron and Occidental Petroleum looks to be a way for Buffett to take advantage of above-average spot prices for crude oil and natural gas. Between Russia's invasion of Ukraine throwing a monkey wrench into European energy supplies, and the pandemic reducing capital investment from global energy majors, meaningfully increasing oil and gas supply likely won't happen for years. That would seem to be a recipe for elevated energy commodity prices.
While these core holdings remain popular buys for the Oracle of Omaha, none is his favorite stock.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Warren Buffett is likely buying his favorite stock once again
Though investors have used Berkshire Hathaway's 13F filings with the Securities and Exchange Commission to ride Buffett's coattails for decades, his favorite stock to buy isn't going to show up in the company's 13Fs. This "mystery" stock is none other than (drum roll) -- Berkshire Hathaway.
Before July 17, 2018, certain criteria needed to be met for Buffett and Berkshire's executive vice chairman, Charlie Munger, to repurchase shares of their company's Class A and Class B common stock. Specifically, Berkshire Hathaway's shares had to be valued at or below 120% of book value (i.e., no more than 20% above book value). In the more than five years leading up to July 17, 2018, Berkshire Hathaway's common stock never dropped below this threshold, which therefore led to no share repurchases.
Then everything changed. On July 17, 2018, Berkshire Hathaway's board passed new criteria to give their star investing duo more freedom to buy back stock. As long as the company has $30 billion in cash, cash equivalents, and U.S. Treasuries on its balance sheet -- and both Buffett and Munger agree that shares of the company trade at an intrinsic discount -- buybacks can be executed without any cap.
In the four years since the board passed these new buyback rules, Buffett and Munger have overseen the repurchase of $62.1 billion of Berkshire Hathaway's Class A and Class B common stock. Put another way, Buffett has spent more buying back his own company's shares in the last four years than he's spent buying shares of Apple and Chevron combined -- and he's probably not done.
As of last weekend, Berkshire Hathaway's shares ended at a 29% premium to book value. With the exception of a brief downturn in June 2022, this is the lowest price-to-book-value for Buffett's company since early 2021.
One of the key reasons Buffett and Munger are buying back so much stock is that it often rewards shareholders. In addition to helping existing shareholders boost their ownership in Berkshire Hathaway, having fewer shares outstanding has the potential to increase earnings per share for a company with steady or growing net income. In other words, it can make Berkshire Hathaway more fundamentally attractive.
What's more, buying back $62.1 billion worth of Berkshire stock over the past four years is a not-so-subtle reminder that Buffett is willing to bet on himself and his cyclically driven portfolio of investments and owned businesses. Even though recessions are inevitable, periods of economic expansion last substantially longer. Berkshire's investment portfolio and roughly five dozen owned companies are well positioned to take advantage of these disproportionately long periods of expansion.
When Berkshire Hathaway reports its third-quarter operating results, don't be surprised if Warren Buffett's favorite stock was a popular buy once again.
10 stocks we like better than Berkshire Hathaway (B shares)
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on 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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Berkshire Hathaway's core holdings remain popular buys For example, Buffett and his investment team were active buyers of tech stock Apple (NASDAQ: AAPL) in both the first and second quarters of 2022. What's more, buying back $62.1 billion worth of Berkshire stock over the past four years is a not-so-subtle reminder that Buffett is willing to bet on himself and his cyclically driven portfolio of investments and owned businesses. When Berkshire Hathaway reports its third-quarter operating results, don't be surprised if Warren Buffett's favorite stock was a popular buy once again.
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Berkshire Hathaway's core holdings remain popular buys For example, Buffett and his investment team were active buyers of tech stock Apple (NASDAQ: AAPL) in both the first and second quarters of 2022. Even though it already accounts for more than 41% of Berkshire Hathaway's $306 billion in invested assets, Buffett views Apple as a valuation pillar for his company. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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Berkshire Hathaway's core holdings remain popular buys For example, Buffett and his investment team were active buyers of tech stock Apple (NASDAQ: AAPL) in both the first and second quarters of 2022. Warren Buffett is likely buying his favorite stock once again Though investors have used Berkshire Hathaway's 13F filings with the Securities and Exchange Commission to ride Buffett's coattails for decades, his favorite stock to buy isn't going to show up in the company's 13Fs. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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Berkshire Hathaway's core holdings remain popular buys For example, Buffett and his investment team were active buyers of tech stock Apple (NASDAQ: AAPL) in both the first and second quarters of 2022. Even though it already accounts for more than 41% of Berkshire Hathaway's $306 billion in invested assets, Buffett views Apple as a valuation pillar for his company. That's right -- they think these 10 stocks are even better buys.
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19033.0
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2022-10-04 00:00:00 UTC
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STOCKS-Wall St closes up as data, RBA move lifts hope of Fed easing
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AAPL
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https://www.nasdaq.com/articles/stocks-wall-st-closes-up-as-data-rba-move-lifts-hope-of-fed-easing
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nan
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By Herbert Lash, Ankika Biswas and Bansari Mayur Kamdar
Oct 4 (Reuters) - Wall Street rallied for a second straight day to end higher on Tuesday after softer U.S. economic data and a smaller-than-expected interest rate hike by the Australian central bank stirred hope that the Federal Reserve might temper its aggressive raising of rates.
While labor demand remains fairly strong, U.S. job openings fell by the most in nearly 2-1/2 years in August in a sign the Fed's mission to tame inflation by tightening policy was working to slow the economy.
Earlier, the Reserve Bank of Australia surprised markets with a smaller-than-expected interest rate hike of 25 basis points. Its cash rate rose to a nine-year peak after six rate hikes in as many months in a tightening cycle other central banks are engaged in too.
The RBA is the first major central bank to recognize that now is the time to slow down after aggressively raising rates this year, said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan.
"There's hope that the Federal Reserve at some point in the fourth quarter will say the same thing. Not stop raising interest rates, but just slow the pace," he said. "That's what the market's kind of rallying on below the surface."
Still, Fed Gov. Philip Jefferson said inflation is the most serious problem facing the U.S. central bank and it "may take some time" to address. San Francisco Fed President Mary Daly said the central bank needs to deliver more rate hikes.
Rate-sensitive tech stocks rose as yields on the benchmark 10-year Treasury US10YT=TWEB fell for a second day in a row after the jobs data and RBA's surprise move. Valuations on tech and other growth stocks fall when their cost of capital rises. US/
The Dow Jones Industrial Average .DJI and S&P 500 .SPX posted their biggest two-day rallies since April 2020.
The repercussions of higher rates will likely be reflected in corporate results when earnings season begins in two weeks, said Dennis Dick, founder and market structure analyst at Triple D Trading Inc.
"We're still in for a tougher time here. I do think this earnings season is going to not be good," he said. "If one of the big guns warns that could end the rally rather quickly. This is just a relief really as opposed to the start of a new bull market."
Billionaire Elon Musk proposed going ahead with his original offer of $54.20 to take Twitter Inc TWTR.N private, two sources familiar with the matter said on Tuesday, sending the social media firm's shares surging. Tesla shares had been up about 6% before the news and immediately cut gains, but ending up on the day.
The megacap titans of Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O and Google parent Alphabet Inc led the rally.
According to preliminary data, the S&P 500 .SPX gained 112.84 points, or 3.09%, to end at 3,791.27 points, while the Nasdaq Composite .IXIC gained 360.97 points, or 3.34%, to 11,174.20. The Dow Jones Industrial Average .DJI rose 823.27 points, or 2.81%, to 30,314.16.
Banks such as Citigroup C.N, Morgan Stanley MS.N and Goldman Sachs GS.N climbed more than 3%.
The rally was broad, with just a dozen or so of the S&P 500 index trading in negative territory.
The rebound in stocks on Monday followed the S&P 500's .SPX lowest close in nearly two years last week that capped its worst monthly performance in September since March 2020.
Rivian Automotive Inc RIVN.O jumped after the electric-vehicle maker said it produced 7,363 units in the third quarter, 67% more than the preceding quarter, and maintained its full-year target of 25,000.
(Reporting by Medha Singh, Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva, Arun Koyyur, Sriraj Kalluvila and Richard Chang)
((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs;))
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 megacap titans of Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O and Google parent Alphabet Inc led the rally. While labor demand remains fairly strong, U.S. job openings fell by the most in nearly 2-1/2 years in August in a sign the Fed's mission to tame inflation by tightening policy was working to slow the economy. The RBA is the first major central bank to recognize that now is the time to slow down after aggressively raising rates this year, said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan.
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The megacap titans of Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O and Google parent Alphabet Inc led the rally. By Herbert Lash, Ankika Biswas and Bansari Mayur Kamdar Oct 4 (Reuters) - Wall Street rallied for a second straight day to end higher on Tuesday after softer U.S. economic data and a smaller-than-expected interest rate hike by the Australian central bank stirred hope that the Federal Reserve might temper its aggressive raising of rates. Earlier, the Reserve Bank of Australia surprised markets with a smaller-than-expected interest rate hike of 25 basis points.
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The megacap titans of Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O and Google parent Alphabet Inc led the rally. By Herbert Lash, Ankika Biswas and Bansari Mayur Kamdar Oct 4 (Reuters) - Wall Street rallied for a second straight day to end higher on Tuesday after softer U.S. economic data and a smaller-than-expected interest rate hike by the Australian central bank stirred hope that the Federal Reserve might temper its aggressive raising of rates. Earlier, the Reserve Bank of Australia surprised markets with a smaller-than-expected interest rate hike of 25 basis points.
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The megacap titans of Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O, Apple Inc AAPL.O and Google parent Alphabet Inc led the rally. By Herbert Lash, Ankika Biswas and Bansari Mayur Kamdar Oct 4 (Reuters) - Wall Street rallied for a second straight day to end higher on Tuesday after softer U.S. economic data and a smaller-than-expected interest rate hike by the Australian central bank stirred hope that the Federal Reserve might temper its aggressive raising of rates. Earlier, the Reserve Bank of Australia surprised markets with a smaller-than-expected interest rate hike of 25 basis points.
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19034.0
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2022-10-04 00:00:00 UTC
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Charter's (CHTR) Spectrum News Beats Peers for Daily Views
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AAPL
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https://www.nasdaq.com/articles/charters-chtr-spectrum-news-beats-peers-for-daily-views
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Charter Communications CHTR recently announced Spectrum news outpaced ABC, CBS, FOX, NVC, CNN, Fox News and MSNBC in terms of daily viewership in September. Spectrum News averaged 2.2 million daily views across its local linear and digital platforms.
Spectrum’s recent performance against its peers can be attributed to the fact that it recently extended its offerings to streaming apps like Roku and Apple’s AAPL Apple TV, which attracted varied customers to its news channels.
Additionally, Spectrum recently collaborated with Comcast CMCSA to launch its Spectrum TV app on XClass TV. Its collaboration with XClass TV will make its tv app available automatically across all XClass TV and can be activated with voice remote and voice recognition.
CHTR’s launch of the Spectrum TV app on XClass TV is in line with its strategy to collaborate with Comcast to develop and offer a new streaming platform on various branded 4K streaming devices and smart TVs. The joint venture will help it to attract new customers for not only its news channels but also for its other offerings. This will aid in Charter’s top-line growth.
Charter Builds Strong Partnership to Combat Competition
Growth slowed down due to lower new activation of Internet users. CHTR had 30.253 million Internet customers in the second quarter of 2022, up 2.1% year over year. It lost 21K Internet customers in the last reported quarter.
Also, the company lost 226,000 video customers in the second quarter, with the market being mostly saturated. The space is dominated by big streaming service providers like Netflix NFLX and Amazon Prime Video, which are heightening the competition for Charter.
Netflix has been spending aggressively on building its original content portfolio, and the company is still enjoying its leading position in the streaming industry. It is the most prominent competitor of CHTR in the video-streaming space.
However, the availability of Apple TV along with other streaming platforms on its TV app will help Charter ward off competition from Netflix and Amazon. As of Jun 30, 2022, CHTR had 32.124 million total customer relationships, up 1.1% year over year.
Also, Charter recently announced the launch of Spectrum Internet, Mobile, TV and Voice services to more than 540 homes and small businesses in the Northwoods regions of Arbor Vitae, Woodruff, Three Lakes and the Town of Piehl, WI.
Spectrum’s recent unveiling of advanced communications services in Marathon County, WI, is in line with its strategy of investing to extend gigabit broadband networks to unserved communities across the United States and win customers as the first mover in these areas. This is expected further aid CHTR in beating the competition and attracting new clients to its various offerings.
Charter’s strategy to invest $5 billion in constructing a fiber-optic network buildout will help provide broadband access to approximately 1 million customer locations across 24 states in the coming years. This, in turn, is expected to expand CHTR’s customer base extensively and aid in its top-line growth.
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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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Spectrum’s recent performance against its peers can be attributed to the fact that it recently extended its offerings to streaming apps like Roku and Apple’s AAPL Apple TV, which attracted varied customers to its news channels. Apple Inc. (AAPL): Free Stock Analysis Report Also, Charter recently announced the launch of Spectrum Internet, Mobile, TV and Voice services to more than 540 homes and small businesses in the Northwoods regions of Arbor Vitae, Woodruff, Three Lakes and the Town of Piehl, WI.
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Spectrum’s recent performance against its peers can be attributed to the fact that it recently extended its offerings to streaming apps like Roku and Apple’s AAPL Apple TV, which attracted varied customers to its news channels. Apple Inc. (AAPL): Free Stock Analysis Report Additionally, Spectrum recently collaborated with Comcast CMCSA to launch its Spectrum TV app on XClass TV.
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Spectrum’s recent performance against its peers can be attributed to the fact that it recently extended its offerings to streaming apps like Roku and Apple’s AAPL Apple TV, which attracted varied customers to its news channels. Apple Inc. (AAPL): Free Stock Analysis Report CHTR’s launch of the Spectrum TV app on XClass TV is in line with its strategy to collaborate with Comcast to develop and offer a new streaming platform on various branded 4K streaming devices and smart TVs.
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Spectrum’s recent performance against its peers can be attributed to the fact that it recently extended its offerings to streaming apps like Roku and Apple’s AAPL Apple TV, which attracted varied customers to its news channels. Apple Inc. (AAPL): Free Stock Analysis Report This will aid in Charter’s top-line growth.
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19035.0
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2022-10-04 00:00:00 UTC
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US STOCKS-Wall St rallies as data, RBA move lifts hope of Fed easing
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rallies-as-data-rba-move-lifts-hope-of-fed-easing
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By Herbert Lash, Ankika Biswas and Bansari Mayur Kamdar
Oct 4 (Reuters) - Wall Street rallied for a second straight day on Tuesday after softer U.S. economic data led Treasury yields lower and Australia's central bank cut interest rates less than expected, providing hope that the Federal Reserve would soon temper its aggressive rate hikes.
While labor demand remains fairly strong, U.S. job openings fell by the most in nearly 2-1/2 years in August in another sign the Fed might ease on its mission to tame inflation by tightening policy.
Earlier, the Reserve Bank of Australia surprised markets with a smaller-than-expected interest rate hike of 25 basis points. Its cash rate rose to a nine-year peak after six rate hikes in as many months, following similar moves by other central banks.
The RBA is the first major central bank to recognize that now is the time to slow down after aggressively raising rates this year, said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan.
"There's hope that the Federal Reserve at some point in the fourth quarter will say the same thing. Not stop raising interest rates, but just slow the pace," he said. "That's what the markets kind of rallying on below the surface."
Still, Fed Gov. Philip Jefferson said inflation is the most serious problem facing the U.S. central bank and it "may take some time" to address. San Francisco Fed President Mary Daly said the central bank needs to deliver more rate hikes.
Rate-sensitive tech stocks rose as yields on the benchmark 10-year Treasury US10YT=TWEB fell for a second day after the jobs data and RBA's surprise move. Valuations on tech and other growth stocks are related to the cost of capital. US/
If gains hold, the Nasdaq Composite index .IXIC is set to notch its best single-day performance since July 27, while the Dow Jones Industrial Average .DJI and S&P 500 .SPX were poised to score their biggest two-day rally since April 2020.
Billionaire Elon Musk proposed going ahead with his original offer of $54.20 to take Twitter Inc TWTR.N private, two sources familiar with the matter said on Tuesday, sending the social media firm's shares surging 12.67%. Tesla shares had been up about 6% before the news and immediately cut gains, up about 2.25% on the day.
The megacap titans led the rally, with Amazon.com Inc AMZN.O climbing 4.36% and Microsoft Corp MSFT.O advancing 2.90%. Apple Inc AAPL.O rose 1.90% while Google parent Alphabet Inc GOOGL.O2.62%.
At 2:30 p.m. ET, the Dow Jones Industrial Average .DJIrose 667.54 points, or 2.26%, to 30,158.43, the S&P 500 .SPXgained 92.64 points, or 2.52%, to 3,771.07 and the Nasdaq Composite .IXICadded 306.59 points, or 2.83%, to 11,122.03.
Banks such as Citigroup C.N, Morgan Stanley MS.N and Goldman Sachs GS.N climbed nearly 5%, boosting the banks index .SPXBK by 4%.
The rally was widespread, with less than a dozen of the S&P 500 index trading in negative territory.
The rebound in stocks on Monday followed the S&P 500's .SPX lowest close in nearly two years last week that capped its worst monthly performance in September since March 2020.
Rivian Automotive Inc RIVN.O jumped 13.4% after the electric-vehicle maker said it produced 7,363 units in the third quarter, 67% more than the preceding quarter, and maintained its full-year target of 25,000.
The S&P 500 posted one new 52-week high and one new low; the Nasdaq Composite recorded 45 new highs and 56 new lows.
(Reporting by Medha Singh, Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva, Arun Koyyur, Sriraj Kalluvila and Richard Chang)
((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs;))
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.O rose 1.90% while Google parent Alphabet Inc GOOGL.O2.62%. The RBA is the first major central bank to recognize that now is the time to slow down after aggressively raising rates this year, said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan. US/ If gains hold, the Nasdaq Composite index .IXIC is set to notch its best single-day performance since July 27, while the Dow Jones Industrial Average .DJI and S&P 500 .SPX were poised to score their biggest two-day rally since April 2020.
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Apple Inc AAPL.O rose 1.90% while Google parent Alphabet Inc GOOGL.O2.62%. By Herbert Lash, Ankika Biswas and Bansari Mayur Kamdar Oct 4 (Reuters) - Wall Street rallied for a second straight day on Tuesday after softer U.S. economic data led Treasury yields lower and Australia's central bank cut interest rates less than expected, providing hope that the Federal Reserve would soon temper its aggressive rate hikes. Earlier, the Reserve Bank of Australia surprised markets with a smaller-than-expected interest rate hike of 25 basis points.
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Apple Inc AAPL.O rose 1.90% while Google parent Alphabet Inc GOOGL.O2.62%. By Herbert Lash, Ankika Biswas and Bansari Mayur Kamdar Oct 4 (Reuters) - Wall Street rallied for a second straight day on Tuesday after softer U.S. economic data led Treasury yields lower and Australia's central bank cut interest rates less than expected, providing hope that the Federal Reserve would soon temper its aggressive rate hikes. Its cash rate rose to a nine-year peak after six rate hikes in as many months, following similar moves by other central banks.
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Apple Inc AAPL.O rose 1.90% while Google parent Alphabet Inc GOOGL.O2.62%. By Herbert Lash, Ankika Biswas and Bansari Mayur Kamdar Oct 4 (Reuters) - Wall Street rallied for a second straight day on Tuesday after softer U.S. economic data led Treasury yields lower and Australia's central bank cut interest rates less than expected, providing hope that the Federal Reserve would soon temper its aggressive rate hikes. Earlier, the Reserve Bank of Australia surprised markets with a smaller-than-expected interest rate hike of 25 basis points.
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19036.0
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2022-10-04 00:00:00 UTC
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POLL-Taiwan Sept export growth seen cooling further
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AAPL
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https://www.nasdaq.com/articles/poll-taiwan-sept-export-growth-seen-cooling-further
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nan
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For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWCPIY%3DECI
Exports median forecast +1.5% y/y (prior month +2%)
Imports median forecast +7% y/y (prior month +3.5%)
Balance median forecast $4.23 bln (prior month $2.99 bln)
CPI median forecast +2.7% y/y (prior month +2.66%)
Trade due Friday, Oct 7, 4:00 p.m. (0800 GMT)
CPI due Thursday, Oct 6, 4:00 p.m. (0800 GMT)
TAIPEI, Oct 5 (Reuters) - Taiwan's exports likely rose for the 27th straight month in September though at a slower pace than in August, amid fears of a global recession, uncertainties due to the Ukraine conflict, and COVID-19 flare-ups in China, according to a Reuters poll.
Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods. The trade data is seen as an important gauge of world demand for tech gadgets.
Exports last month were estimated to have risen 1.5% from a year earlier, a Reuters poll of 19 analysts showed on Wednesday, slightly slower than the 2% rise in August.
The export forecasts varied widely between a contraction of 5.83% and expansion of 5.1%, reflecting uncertainties over the global economy, supply chain disruptions due to pandemic lockdowns and power shortages in China, and Russia's invasion of Ukraine.
Taiwan's Finance Ministry has predicted September exports could be in a range of a 3% contraction to a 1% expansion from a year earlier.
Separately, the consumer price index was expected to have risen 2.7% in September from a year earlier, a faster rate than 2.66% in August.
The inflation data will be released on Thursday, followed by trade data on Friday.
(Poll compiled by Arsh Mogre and Carol Lee; Reporting by Ben Blanchard; Editing by Kim Coghill)
((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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Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods. Exports last month were estimated to have risen 1.5% from a year earlier, a Reuters poll of 19 analysts showed on Wednesday, slightly slower than the 2% rise in August. The export forecasts varied widely between a contraction of 5.83% and expansion of 5.1%, reflecting uncertainties over the global economy, supply chain disruptions due to pandemic lockdowns and power shortages in China, and Russia's invasion of Ukraine.
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Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWCPIY%3DECI Exports median forecast +1.5% y/y (prior month +2%) Imports median forecast +7% y/y (prior month +3.5%) Balance median forecast $4.23 bln (prior month $2.99 bln) CPI median forecast +2.7% y/y (prior month +2.66%) Trade due Friday, Oct 7, 4:00 p.m. (0800 GMT) CPI due Thursday, Oct 6, 4:00 p.m. (0800 GMT) TAIPEI, Oct 5 (Reuters) - Taiwan's exports likely rose for the 27th straight month in September though at a slower pace than in August, amid fears of a global recession, uncertainties due to the Ukraine conflict, and COVID-19 flare-ups in China, according to a Reuters poll. Exports last month were estimated to have risen 1.5% from a year earlier, a Reuters poll of 19 analysts showed on Wednesday, slightly slower than the 2% rise in August.
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Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWCPIY%3DECI Exports median forecast +1.5% y/y (prior month +2%) Imports median forecast +7% y/y (prior month +3.5%) Balance median forecast $4.23 bln (prior month $2.99 bln) CPI median forecast +2.7% y/y (prior month +2.66%) Trade due Friday, Oct 7, 4:00 p.m. (0800 GMT) CPI due Thursday, Oct 6, 4:00 p.m. (0800 GMT) TAIPEI, Oct 5 (Reuters) - Taiwan's exports likely rose for the 27th straight month in September though at a slower pace than in August, amid fears of a global recession, uncertainties due to the Ukraine conflict, and COVID-19 flare-ups in China, according to a Reuters poll. Exports last month were estimated to have risen 1.5% from a year earlier, a Reuters poll of 19 analysts showed on Wednesday, slightly slower than the 2% rise in August.
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Taiwan, a global hub for chip production and a key supplier to Apple Inc AAPL.O, is one of Asia's leading exporters of technology goods. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWCPIY%3DECI Exports median forecast +1.5% y/y (prior month +2%) Imports median forecast +7% y/y (prior month +3.5%) Balance median forecast $4.23 bln (prior month $2.99 bln) CPI median forecast +2.7% y/y (prior month +2.66%) Trade due Friday, Oct 7, 4:00 p.m. (0800 GMT) CPI due Thursday, Oct 6, 4:00 p.m. (0800 GMT) TAIPEI, Oct 5 (Reuters) - Taiwan's exports likely rose for the 27th straight month in September though at a slower pace than in August, amid fears of a global recession, uncertainties due to the Ukraine conflict, and COVID-19 flare-ups in China, according to a Reuters poll. The trade data is seen as an important gauge of world demand for tech gadgets.
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19037.0
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2022-10-04 00:00:00 UTC
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DELL Rides on Strong Partner Base Amid Growing Challenges
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AAPL
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https://www.nasdaq.com/articles/dell-rides-on-strong-partner-base-amid-growing-challenges
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nan
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nan
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Dell Technologies DELL is benefiting from an expanding partner base that includes the likes of Red Hat, Fujitsu, Wind River and Advanced Micro Devices AMD.
Dell recently announced that it has inked a partnership with Fujitsu to offer solutions that will accelerate the adoption and simplify the deployment of open radio access network (Open RAN) solutions for communications service providers (CSPs).
The combination of Dell’s Open RAN Accelerator Card and Fujitsu’s Open RAN compliant radio units will enable CSPs to deploy more efficient open RAN solutions.
Meanwhile, Dell expanded its partnership with Red Hat to offer new solutions that will help in deploying and managing on-premises, containerized infrastructure in multi-cloud environments.
The Dell-Red Hat combined solutions will help enterprises speed up the development and operations of cloud-native applications while removing IT management barriers and bottlenecks.
Moreover, Dell and Red Hat are co-developing a hybrid cloud solution that extends management of on-premises Red Hat OpenShift deployments across public clouds and the edge.
Additionally, in collaboration with Wind River, Dell is launching a new telecom cloud infrastructure solution for CSPs to reduce complexity and accelerate their cloud-native network deployments.
Dell also collaborated with AMD to launch the most powerful 17” AMD Advantage laptop, the Alienware m17 r5 Gaming Laptop.
The new laptop is integrated with AMD Ryzen 6000 series processors, AMD Radeon RX 6000 series graphics, and new AMD Smart Technologies. This laptop has been designed specifically to address the gaming sector as it will feature a new display technology — AMD Smartshift Max — to help boost gaming performance and save battery life.
Dell Prospects Dragged Down by Weak Demand
Dell’s prospects are suffering from a challenging demand environment in the Infrastructure Solutions Group (“ISG”). ISG offers servers and storage devices.
In the second quarter of 2022, Dell witnessed a shortage of parts and embedded integrated circuits, including power supplies and NICs in the reported quarter. ISG backlog, particularly servers, remained elevated.
In the Client Solutions Group segment, Dell witnessed weak demand in both Consumer and Commercial segments.
Lower PC shipment is expected to hurt computer makers like Dell, HP HPQ and Apple AAPL. According to the data compiled by Gartner, PC vendors shipped 72 million units in the April-June quarter of 2022, 12.6% lower than the year-ago quarter. Another independent research firm, International Data Corporation, revealed that PC sales were down 15.3% year over year to 71.3 million units in the second quarter.
Per IDC, HP, Dell and Apple registered a year-over-year decline of 27.6%, 5.3% and 22.5%, respectively, in PC deliveries.
In its third-quarter fiscal 2022 results, HP revealed that total PC units sold were down 7% on a year-over-year basis, resulting in a 3% year-over-year decline in its Personal Systems revenues. Similarly, Apple reported a 10.4% plunge in Mac revenues in third-quarter fiscal 2022.
These factors are expected to hurt Dell’s top-line growth in the near term. Dell expects fiscal third-quarter revenues between $23.8 billion and $25 billion, down 8% at the mid-point, with CSG declining in the high-teens and ISG growing in the low-teens.
Gross margin is expected to increase sequentially as the mix shifts to ISG. Operating expense is expected to decline sequentially.
Dell expects earnings between $1.53 and $1.79 per share, unchanged year over year at the mid-point.
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Apple Inc. (AAPL): Free Stock Analysis Report
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HP Inc. (HPQ): Free Stock Analysis Report
Dell Technologies Inc. (DELL): 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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Lower PC shipment is expected to hurt computer makers like Dell, HP HPQ and Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Meanwhile, Dell expanded its partnership with Red Hat to offer new solutions that will help in deploying and managing on-premises, containerized infrastructure in multi-cloud environments.
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Lower PC shipment is expected to hurt computer makers like Dell, HP HPQ and Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Dell Technologies DELL is benefiting from an expanding partner base that includes the likes of Red Hat, Fujitsu, Wind River and Advanced Micro Devices AMD.
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Lower PC shipment is expected to hurt computer makers like Dell, HP HPQ and Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Dell Technologies DELL is benefiting from an expanding partner base that includes the likes of Red Hat, Fujitsu, Wind River and Advanced Micro Devices AMD.
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Apple Inc. (AAPL): Free Stock Analysis Report Lower PC shipment is expected to hurt computer makers like Dell, HP HPQ and Apple AAPL. Meanwhile, Dell expanded its partnership with Red Hat to offer new solutions that will help in deploying and managing on-premises, containerized infrastructure in multi-cloud environments.
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19038.0
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2022-10-04 00:00:00 UTC
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After Hours Most Active for Oct 4, 2022 : SWN, COMP, X, OPEN, MSFT, AAPL, FDX, META, QQQ, BEKE, TWTR, GOOGL
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-4-2022-%3A-swn-comp-x-open-msft-aapl-fdx-meta-qqq-beke-twtr
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nan
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The NASDAQ 100 After Hours Indicator is down -3.51 to 11,579.03. The total After hours volume is currently 108,692,227 shares traded.
The following are the most active stocks for the after hours session:
Southwestern Energy Company (SWN) is -0.02 at $7.06, with 6,266,844 shares traded. SWN's current last sale is 72.41% of the target price of $9.75.
Compass, Inc. (COMP) is unchanged at $2.63, with 4,864,258 shares traded. As reported by Zacks, the current mean recommendation for COMP is in the "buy range".
United States Steel Corporation (X) is -0.04 at $20.39, with 4,354,177 shares traded. X's current last sale is 79.96% of the target price of $25.5.
Opendoor Technologies Inc (OPEN) is unchanged at $3.38, with 3,771,784 shares traded. As reported by Zacks, the current mean recommendation for OPEN is in the "buy range".
Microsoft Corporation (MSFT) is unchanged at $248.88, with 3,278,227 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Apple Inc. (AAPL) is -0.08 at $146.02, with 3,164,283 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
FedEx Corporation (FDX) is unchanged at $159.12, with 3,053,453 shares traded. FDX's current last sale is 79.96% of the target price of $199.
Meta Platforms, Inc. (META) is +0.02 at $140.30, with 2,897,396 shares traded. As reported by Zacks, the current mean recommendation for META is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is -0.03 at $282.10, with 2,806,032 shares traded. This represents a 5.62% increase from its 52 Week Low.
KE Holdings Inc (BEKE) is unchanged at $18.00, with 2,769,305 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range".
Twitter, Inc. (TWTR) is -0.5 at $51.50, with 2,754,915 shares traded. TWTR's current last sale is 119.77% of the target price of $43.
Alphabet Inc. (GOOGL) is -0.03 at $101.61, with 2,263,089 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
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 -0.08 at $146.02, with 3,164,283 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 COMP is in the "buy range".
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Apple Inc. (AAPL) is -0.08 at $146.02, with 3,164,283 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 COMP is in the "buy range".
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Apple Inc. (AAPL) is -0.08 at $146.02, with 3,164,283 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 108,692,227 shares traded.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.08 at $146.02, with 3,164,283 shares traded. The NASDAQ 100 After Hours Indicator is down -3.51 to 11,579.03.
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19039.0
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2022-10-04 00:00:00 UTC
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Foxconn shares rise after offering cautiously optimistic Q4 outlook
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AAPL
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https://www.nasdaq.com/articles/foxconn-shares-rise-after-offering-cautiously-optimistic-q4-outlook
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nan
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nan
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TAIPEI, Oct 5 (Reuters) - Shares in Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, rose 3% on Wednesday morning after the company said it was "cautiously optimistic" about its fourth-quarter revenue outlook.
Foxconn, a major Apple Inc AAPL.O supplier, also on Tuesday reported record-breaking September sales.
(Reporting by Ben Blanchard Editing by Shri Navaratnam)
((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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Foxconn, a major Apple Inc AAPL.O supplier, also on Tuesday reported record-breaking September sales. TAIPEI, Oct 5 (Reuters) - Shares in Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, rose 3% on Wednesday morning after the company said it was "cautiously optimistic" about its fourth-quarter revenue outlook. (Reporting by Ben Blanchard Editing by Shri Navaratnam) ((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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Foxconn, a major Apple Inc AAPL.O supplier, also on Tuesday reported record-breaking September sales. TAIPEI, Oct 5 (Reuters) - Shares in Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, rose 3% on Wednesday morning after the company said it was "cautiously optimistic" about its fourth-quarter revenue outlook. (Reporting by Ben Blanchard Editing by Shri Navaratnam) ((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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Foxconn, a major Apple Inc AAPL.O supplier, also on Tuesday reported record-breaking September sales. TAIPEI, Oct 5 (Reuters) - Shares in Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, rose 3% on Wednesday morning after the company said it was "cautiously optimistic" about its fourth-quarter revenue outlook. (Reporting by Ben Blanchard Editing by Shri Navaratnam) ((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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Foxconn, a major Apple Inc AAPL.O supplier, also on Tuesday reported record-breaking September sales. TAIPEI, Oct 5 (Reuters) - Shares in Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, rose 3% on Wednesday morning after the company said it was "cautiously optimistic" about its fourth-quarter revenue outlook. (Reporting by Ben Blanchard Editing by Shri Navaratnam) ((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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19040.0
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2022-10-04 00:00:00 UTC
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Apple Will Be Forced To Use USB-C Type Charger In EU
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AAPL
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https://www.nasdaq.com/articles/apple-will-be-forced-to-use-usb-c-type-charger-in-eu
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nan
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nan
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(RTTNews) - The European Union are one step closer to force tech giant Apple Inc. (AAPL) and other OEMs to use a single charging standard for electronic devices.
The European Parliament voted in favor of enforcing USB-C as a common charging port across a wide range of consumer electronic devices, including the iPhone and AirPods, by the end of 2024.
This directive, which will be a world-first statute, will largely impact Apple, since it widely uses the Lightning connector for its devices instead of USB-C on many of its devices.
The new proposal is expected to reduce electronic waste, address product sustainability, and make use of different devices more convenient. The directive received 602 votes in favor, 13 votes against, and eight abstentions. The proposal will also apply to laptops from 2026, although many already use USB-C.
"Under the new rules, consumers will no longer need a different charger every time they purchase a new device, as they will be able to use one single charger for a whole range of small and medium-sized portable electronic devices," a press release reads.
"Regardless of their manufacturer, all new mobile phones, tablets, digital cameras, headphones and headsets, handheld videogame consoles and portable speakers, e-readers, keyboards, mice, portable navigation systems, earbuds and laptops that are rechargeable via a wired cable, operating with a power delivery of up to 100 Watts, will have to be equipped with a USB Type-C port," it added.
Parliament's rapporteur Alex Agius Saliba said: "The common charger will finally become a reality in Europe. We have waited more than ten years for these rules, but we can finally leave the current plethora of chargers in the past. This future-proof law allows for the development of innovative charging solutions in the future, and it will benefit everyone - from frustrated consumers to our vulnerable environment. These are difficult times for politics, but we have shown that the EU has not run out of ideas or solutions to improve the lives of millions in Europe and inspire other parts of the world to follow suit"
The deal still requires a final approval from the EU member states.
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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(RTTNews) - The European Union are one step closer to force tech giant Apple Inc. (AAPL) and other OEMs to use a single charging standard for electronic devices. The European Parliament voted in favor of enforcing USB-C as a common charging port across a wide range of consumer electronic devices, including the iPhone and AirPods, by the end of 2024. "Regardless of their manufacturer, all new mobile phones, tablets, digital cameras, headphones and headsets, handheld videogame consoles and portable speakers, e-readers, keyboards, mice, portable navigation systems, earbuds and laptops that are rechargeable via a wired cable, operating with a power delivery of up to 100 Watts, will have to be equipped with a USB Type-C port," it added.
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(RTTNews) - The European Union are one step closer to force tech giant Apple Inc. (AAPL) and other OEMs to use a single charging standard for electronic devices. The European Parliament voted in favor of enforcing USB-C as a common charging port across a wide range of consumer electronic devices, including the iPhone and AirPods, by the end of 2024. The proposal will also apply to laptops from 2026, although many already use USB-C. "Under the new rules, consumers will no longer need a different charger every time they purchase a new device, as they will be able to use one single charger for a whole range of small and medium-sized portable electronic devices," a press release reads.
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(RTTNews) - The European Union are one step closer to force tech giant Apple Inc. (AAPL) and other OEMs to use a single charging standard for electronic devices. The European Parliament voted in favor of enforcing USB-C as a common charging port across a wide range of consumer electronic devices, including the iPhone and AirPods, by the end of 2024. The proposal will also apply to laptops from 2026, although many already use USB-C. "Under the new rules, consumers will no longer need a different charger every time they purchase a new device, as they will be able to use one single charger for a whole range of small and medium-sized portable electronic devices," a press release reads.
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(RTTNews) - The European Union are one step closer to force tech giant Apple Inc. (AAPL) and other OEMs to use a single charging standard for electronic devices. The European Parliament voted in favor of enforcing USB-C as a common charging port across a wide range of consumer electronic devices, including the iPhone and AirPods, by the end of 2024. The new proposal is expected to reduce electronic waste, address product sustainability, and make use of different devices more convenient.
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19041.0
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2022-10-04 00:00:00 UTC
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Apple Inc. (NASDAQ:AAPL) down to US$2.3t market cap, but institutional owners may not be as affected after a year of 3.0% returns
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-nasdaq%3Aaapl-down-to-us%242.3t-market-cap-but-institutional-owners-may-not-be-as
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nan
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nan
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A look at the shareholders of Apple Inc. (NASDAQ:AAPL) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 53% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Institutional investors endured the highest losses after the company's market cap fell by US$134b last week. However, the 3.0% one-year return to shareholders might have softened the blow. But they would probably be wary of future losses.
Let's delve deeper into each type of owner of Apple, beginning with the chart below.
NasdaqGS:AAPL Ownership Breakdown October 4th 2022
What Does The Institutional Ownership Tell Us About Apple?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors have a fair amount of stake in Apple. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Apple, (below). Of course, keep in mind that there are other factors to consider, too.
NasdaqGS:AAPL Earnings and Revenue Growth October 4th 2022
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in Apple. The Vanguard Group, Inc. is currently the company's largest shareholder with 7.9% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 6.4% of common stock, and Berkshire Hathaway Inc. holds about 5.6% of the company stock.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Apple
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own less than 1% of Apple Inc.. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own US$1.4b worth of shares. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
General Public Ownership
With a 41% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Apple. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Public Company Ownership
It appears to us that public companies own 5.6% of Apple. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 1 warning sign we've spotted with Apple .
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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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NasdaqGS:AAPL Earnings and Revenue Growth October 4th 2022 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. A look at the shareholders of Apple Inc. (NASDAQ:AAPL) can tell us which group is most powerful. NasdaqGS:AAPL Ownership Breakdown October 4th 2022 What Does The Institutional Ownership Tell Us About Apple?
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NasdaqGS:AAPL Earnings and Revenue Growth October 4th 2022 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. A look at the shareholders of Apple Inc. (NASDAQ:AAPL) can tell us which group is most powerful. NasdaqGS:AAPL Ownership Breakdown October 4th 2022 What Does The Institutional Ownership Tell Us About Apple?
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A look at the shareholders of Apple Inc. (NASDAQ:AAPL) can tell us which group is most powerful. NasdaqGS:AAPL Ownership Breakdown October 4th 2022 What Does The Institutional Ownership Tell Us About Apple? NasdaqGS:AAPL Earnings and Revenue Growth October 4th 2022 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences.
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A look at the shareholders of Apple Inc. (NASDAQ:AAPL) can tell us which group is most powerful. NasdaqGS:AAPL Ownership Breakdown October 4th 2022 What Does The Institutional Ownership Tell Us About Apple? NasdaqGS:AAPL Earnings and Revenue Growth October 4th 2022 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences.
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19042.0
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2022-10-04 00:00:00 UTC
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US STOCKS-Nasdaq jumps as easing Treasury yields lift growth stocks; Twitter surges
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-jumps-as-easing-treasury-yields-lift-growth-stocks-twitter-surges
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nan
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By Ankika Biswas and Bansari Mayur Kamdar
Oct 4 (Reuters) - The Nasdaq led Wall Street higher on Tuesday, powered by megacap growth and technology stocks as U.S. Treasury yields dipped, while Twitter Inc jumped on reports Elon Musk is proposing to go ahead with his original offer for the social media firm.
If gains hold, the Nasdaq Composite .IXIC index is set to notch its best single-day performance since July 27.
Data showed U.S. job openings, a measure of labor demand, fell by the most in nearly 2-1/2 years in August.
Lifting rate-sensitive tech and tech-adjacent stocks, the yields on the 10-year U.S. Treasury US10YT=TWEB fell for a second day after the jobs data and a surprise move by Australia's central bank to slow its pace of rate hikes. US/
"Jolts coming in lower than expected points to a weakening labor market," said Thomas Hayes, chairman and managing member of New York-based Great Hill Capital.
"If confirmed by the NFP (non-farm payroll) jobs report on Friday it could give Fed cover to slow down its tightening."
Nevertheless, Governor Philip Jefferson said inflation is the most serious problem facing the Federal Reserve and "may take some time" to address and San Francisco Federal Reserve Bank President Mary Daly said the central bank needs to deliver further interest rate hikes.
Megacap market leaders such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O advanced between 2% and 5%, while the Philadelphia SE Semiconductor index .SOX climbed 4.1%.
Billionaire Elon Musk is proposing to go ahead with his original offer of $54.20 per share to take Twitter Inc TWTR.N private, two sources familiar with the matter said, sending shares of the social media firm up 12.7%.
Tesla Inc TSLA.O, the electric vehicle company that Musk heads, pared some early gains but still traded 1.5% higher.
At 12:52 p.m. ET, the Dow Jones Industrial Average .DJI was up 713.98 points, or 2.42%, at 30,204.87, the S&P 500 .SPX was up 96.88 points, or 2.63%, at 3,775.31, and the Nasdaq Composite .IXIC was up 315.72 points, or 2.92%, at 11,131.15.
Banks such as Citigroup C.N, Morgan Stanley MS.N, and Goldman Sachs GS.N climbed nearly 5%, boosting the banks index .SPXBK by 4%.
Indicative of the broad-based nature of gains, only nine stocks on the benchmark S&P 500 .SPX index were trading in the negative territory.
The rebound in stocks on the first trading session of the final quarter on Monday followed the S&P 500's .SPX lowest close in nearly two years on Friday that capped its worst monthly performance since March 2020.
Rivian Automotive Inc RIVN.O jumped 12.1% after the electric-vehicle maker said it produced 7,363 units in the third quarter, 67% higher than the preceding quarter, and maintained its full-year target of 25,000.
Advancing issues outnumbered decliners by a 9.87-to-1 ratio on the NYSE and a 4.81-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and one new low, while the Nasdaq recorded 41 new highs and 45 new lows.
(Reporting by Medha Singh, Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva, Arun Koyyur and Sriraj Kalluvila)
((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs;))
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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Megacap market leaders such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O advanced between 2% and 5%, while the Philadelphia SE Semiconductor index .SOX climbed 4.1%. By Ankika Biswas and Bansari Mayur Kamdar Oct 4 (Reuters) - The Nasdaq led Wall Street higher on Tuesday, powered by megacap growth and technology stocks as U.S. Treasury yields dipped, while Twitter Inc jumped on reports Elon Musk is proposing to go ahead with his original offer for the social media firm. Lifting rate-sensitive tech and tech-adjacent stocks, the yields on the 10-year U.S. Treasury US10YT=TWEB fell for a second day after the jobs data and a surprise move by Australia's central bank to slow its pace of rate hikes.
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Megacap market leaders such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O advanced between 2% and 5%, while the Philadelphia SE Semiconductor index .SOX climbed 4.1%. By Ankika Biswas and Bansari Mayur Kamdar Oct 4 (Reuters) - The Nasdaq led Wall Street higher on Tuesday, powered by megacap growth and technology stocks as U.S. Treasury yields dipped, while Twitter Inc jumped on reports Elon Musk is proposing to go ahead with his original offer for the social media firm. Billionaire Elon Musk is proposing to go ahead with his original offer of $54.20 per share to take Twitter Inc TWTR.N private, two sources familiar with the matter said, sending shares of the social media firm up 12.7%.
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Megacap market leaders such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O advanced between 2% and 5%, while the Philadelphia SE Semiconductor index .SOX climbed 4.1%. By Ankika Biswas and Bansari Mayur Kamdar Oct 4 (Reuters) - The Nasdaq led Wall Street higher on Tuesday, powered by megacap growth and technology stocks as U.S. Treasury yields dipped, while Twitter Inc jumped on reports Elon Musk is proposing to go ahead with his original offer for the social media firm. Lifting rate-sensitive tech and tech-adjacent stocks, the yields on the 10-year U.S. Treasury US10YT=TWEB fell for a second day after the jobs data and a surprise move by Australia's central bank to slow its pace of rate hikes.
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Megacap market leaders such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O advanced between 2% and 5%, while the Philadelphia SE Semiconductor index .SOX climbed 4.1%. By Ankika Biswas and Bansari Mayur Kamdar Oct 4 (Reuters) - The Nasdaq led Wall Street higher on Tuesday, powered by megacap growth and technology stocks as U.S. Treasury yields dipped, while Twitter Inc jumped on reports Elon Musk is proposing to go ahead with his original offer for the social media firm. Lifting rate-sensitive tech and tech-adjacent stocks, the yields on the 10-year U.S. Treasury US10YT=TWEB fell for a second day after the jobs data and a surprise move by Australia's central bank to slow its pace of rate hikes.
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19043.0
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2022-10-04 00:00:00 UTC
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London's Battersea Power Station reborn as office and shopping hub
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https://www.nasdaq.com/articles/londons-battersea-power-station-reborn-as-office-and-shopping-hub
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By Sachin Ravikumar
LONDON, Oct 4 (Reuters) - London's Battersea Power Station reopens next week as a glitzy hub of offices, flats, restaurants and shops after decades of failed attempts to reinvigorate one of the capital's most iconic buildings, often described as the "Everest of real estate".
The 1930s power station once supplied a fifth of London's electricity, including to Buckingham Palace and parliament, but is better known for featuring alongside a floating inflatable pig on the cover of Pink Floyd's 1977 album "Animals".
The colossal brick building earned its reputation as one of London real estate's toughest challenges after a series of false starts, including an attempt to recreate it as a theme park.
Its 9-billion-pound ($10.2 billion) redevelopment, backed by a group of Malaysian investors, will see thousands of people living and working in and around the once-derelict station after its formal opening on Oct. 14.
Apple AAPL.O will become the largest office tenant, occupying six floors in the former central boiler house of the power station, known for its four white chimneys that dominate the skyline over the south bank of the River Thames.
About 96% of the commercial space has been filled up, Battersea Power Station Development Company boss Simon Murphy told reporters on Tuesday.
"It has taken a lot of hard work, determination, and the continued commitment of the Malaysian shareholders over the past ten years to bring Battersea Power Station back to its former glory," Murphy said, noting the cost of restoring the station was 2 million pounds per day at its peak.
The Battersea project, spread over an area the size of 32 soccer fields, got a major boost from the opening last year of a London Tube station a two-minute walk away, partly funded by the development company.
"Without the Tube, we wouldn't have brought our office occupiers, we wouldn't have brought the retailers," Murphy said. "Neither project could survive without the other."
The coal-fired power station was shut down completely in 1983.
Its redevelopment will see more than 250 apartments starting at 865,000 pounds apiece around the power station, in addition to commercial space that should bring in 100 million pounds of rent annually, Murphy said.
The project will also bring dozens of retailers including Zara, Hugo Boss and Ralph Lauren, besides restaurants including a 1950s-themed bar at the site of the station's Control Room B, replete with now-defunct mechanical switches and dials.
Indeed, much of the project has focused on retaining an industrial flavour, from its exposed brick walls and a large, rusty crane left hanging in the central hall, to escalators with transparent side panels displaying their inner machinery.
For views of London's skyline, visitors will be able to take a lift 109 metres up to the top of one of the chimneys, rebuilt over three years with 25,000 wheelbarrows of hand-poured concrete to match original design specifications.
"We want to make sure that people, when they come inside the building, they realise that this was a power station and don't think is a brand new building," said Sebastian Ricard, one of the architects involved in the redevelopment.
($1 = 0.8818 pounds)
(Reporting by Sachin Ravikumar; Editing by David Gregorio)
((saisachin.r@tr.com; Twitter: @sachinr27;))
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 will become the largest office tenant, occupying six floors in the former central boiler house of the power station, known for its four white chimneys that dominate the skyline over the south bank of the River Thames. The 1930s power station once supplied a fifth of London's electricity, including to Buckingham Palace and parliament, but is better known for featuring alongside a floating inflatable pig on the cover of Pink Floyd's 1977 album "Animals". The Battersea project, spread over an area the size of 32 soccer fields, got a major boost from the opening last year of a London Tube station a two-minute walk away, partly funded by the development company.
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Apple AAPL.O will become the largest office tenant, occupying six floors in the former central boiler house of the power station, known for its four white chimneys that dominate the skyline over the south bank of the River Thames. By Sachin Ravikumar LONDON, Oct 4 (Reuters) - London's Battersea Power Station reopens next week as a glitzy hub of offices, flats, restaurants and shops after decades of failed attempts to reinvigorate one of the capital's most iconic buildings, often described as the "Everest of real estate". About 96% of the commercial space has been filled up, Battersea Power Station Development Company boss Simon Murphy told reporters on Tuesday.
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Apple AAPL.O will become the largest office tenant, occupying six floors in the former central boiler house of the power station, known for its four white chimneys that dominate the skyline over the south bank of the River Thames. By Sachin Ravikumar LONDON, Oct 4 (Reuters) - London's Battersea Power Station reopens next week as a glitzy hub of offices, flats, restaurants and shops after decades of failed attempts to reinvigorate one of the capital's most iconic buildings, often described as the "Everest of real estate". "It has taken a lot of hard work, determination, and the continued commitment of the Malaysian shareholders over the past ten years to bring Battersea Power Station back to its former glory," Murphy said, noting the cost of restoring the station was 2 million pounds per day at its peak.
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Apple AAPL.O will become the largest office tenant, occupying six floors in the former central boiler house of the power station, known for its four white chimneys that dominate the skyline over the south bank of the River Thames. By Sachin Ravikumar LONDON, Oct 4 (Reuters) - London's Battersea Power Station reopens next week as a glitzy hub of offices, flats, restaurants and shops after decades of failed attempts to reinvigorate one of the capital's most iconic buildings, often described as the "Everest of real estate". About 96% of the commercial space has been filled up, Battersea Power Station Development Company boss Simon Murphy told reporters on Tuesday.
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19044.0
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2022-10-04 00:00:00 UTC
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3 No-Brainer Warren Buffett Stocks to Buy Right Now
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https://www.nasdaq.com/articles/3-no-brainer-warren-buffett-stocks-to-buy-right-now-2
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Born in Omaha, Nebraska, in 1930, Warren Buffett is widely considered to be one of history's best investors. If you were fortunate enough to hold a $100 stake in Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) back when Buffett assumed control of the company in 1965, that position would now be worth more than $2.25 million now.
With that kind of incredible, market-crushing performance, it's little wonder he's sometimes referred to as "the Oracle of Omaha." If you're interested in taking a page out of his playbook, read on for a look at three Buffett-backed stocks that are worth buying today.
Image source: The Motley Fool.
1. Amazon
Amazon (NASDAQ: AMZN) spearheaded the growth of the e-commerce industry, and the company remains a top player in the space. While the online retail industry has historically been low margin, advancements in automation and robotics have the potential to make the business much more profitable. Amazon has scale and infrastructure advantages in the category that give it a powerful moat, and its e-commerce business has the potential to evolve into a much bigger earnings driver. No company in the e-commerce or overall retail space is better positioned to take advantage of automation than Amazon.
As impressive as its online retail segment is, the company's cloud infrastructure business actually accounts for the large majority of its profits. Amazon Web Services (AWS) is the world's largest cloud infrastructure services network, and it's contributed roughly $12.2 billion in operating income in the first half of the year. Meanwhile, Amazon's e-commerce-centric segments actually combined for an operating loss of roughly $5.2 billion in the period due to rising operating costs and large infrastructure investments.AWS grew sales roughly 33% year over year last quarter, and with the segment coming to account for a larger portion of total revenue, it should boost the company's overall profitability over the long term.
At roughly 0.4% of Berkshire's total stock portfolio, the tech giant accounts for a small portion of the investment conglomerate's holdings, but Buffett went so far as to describe himself as an "idiot" for not getting in earlier after finally buying shares in the first quarter of 2019. Even though Amazon stock is down roughly 38% from its peak valuation, Berkshire has still made substantial gains on its investment.
Amazon is a business with incredibly strong competitive positioning and promising avenues to growth despite its already massive size, and the stock looks primed to be a winner for shareholders who take a buy-and-hold approach.
2. Apple
Buffett once called Apple (NASDAQ: AAPL) the best business he knew of in the world, and Berkshire's massive investment in the tech company makes it clear he has high conviction in that assessment. Apple is the largest position in the Berkshire portfolio and currently accounts for nearly 40% of its total stock holdings.
The tech giant absolutely dominates the mobile hardware space. The iPhone recently surpassed 50% market share in the U.S., giving Apple market leadership in the category despite competing against a wide array of (often less expensive) devices from manufacturers using Alphabet's Android operating system. While the company's market share is lower in the global mobile market, Apple still dominates when it comes to worldwide mobile hardware profits.
Even better, dominance in the mobile space has helped lay the foundations for the company's enormously profitable software and services business, and users of Apple devices spend far more on app purchases and subscriptions than those on Android-based counterparts. Apple's brand strength and all-encompassing hardware and services ecosystem create powerful competitive advantages and will likely help the company continue to serve up market-beating returns for long-term shareholders.
3. Berkshire Hathaway
If you want to invest like the Oracle of Omaha, buying Berkshire Hathaway stock might be the single best way to do it. Led by Buffett, co-chairman Charlie Munger, and teams of top analysts, Berkshire Hathaway has crushed the market for decades, and owning the stock gives you a piece of the famously successful conglomerate.
BRK.A Total Return Level data by YCharts
In addition to its portfolio of stock holdings, investing in Berkshire also gives you exposure to its fully owned subsidiaries. The company owns massive railway, insurance, and energy businesses, and it also has big names including GEICO insurance, Duracell batteries, and Dairy Queen restaurants under its corporate umbrella.
In recent years, Buffett and the management team at Berkshire Hathaway have spent more money buying back the company's own shares than investing in any other stock. The big buyback push likely signified that management believed the stock to be undervalued, and it's also had the effect of boosting earnings per share by reducing the total number of shares outstanding. Even after buying back more than $62 billion worth of its own stock over the last four years, Berkshire held $105.4 billion in cash at the end of the second quarter, and it could use recent market turbulence to invest in beaten-down companies or make new acquisitions.
Berkshire Hathaway is a fantastically managed company with a strong foundation, and the stock stands out as a relatively low-risk investment capable of delivering market-beating returns.
10 stocks we like better than Amazon
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*Stock Advisor returns as of September 30, 2022
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on 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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Apple Buffett once called Apple (NASDAQ: AAPL) the best business he knew of in the world, and Berkshire's massive investment in the tech company makes it clear he has high conviction in that assessment. At roughly 0.4% of Berkshire's total stock portfolio, the tech giant accounts for a small portion of the investment conglomerate's holdings, but Buffett went so far as to describe himself as an "idiot" for not getting in earlier after finally buying shares in the first quarter of 2019. Even better, dominance in the mobile space has helped lay the foundations for the company's enormously profitable software and services business, and users of Apple devices spend far more on app purchases and subscriptions than those on Android-based counterparts.
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Apple Buffett once called Apple (NASDAQ: AAPL) the best business he knew of in the world, and Berkshire's massive investment in the tech company makes it clear he has high conviction in that assessment. At roughly 0.4% of Berkshire's total stock portfolio, the tech giant accounts for a small portion of the investment conglomerate's holdings, but Buffett went so far as to describe himself as an "idiot" for not getting in earlier after finally buying shares in the first quarter of 2019. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Berkshire Hathaway (B shares).
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Apple Buffett once called Apple (NASDAQ: AAPL) the best business he knew of in the world, and Berkshire's massive investment in the tech company makes it clear he has high conviction in that assessment. In recent years, Buffett and the management team at Berkshire Hathaway have spent more money buying back the company's own shares than investing in any other stock. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Berkshire Hathaway (B shares).
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Apple Buffett once called Apple (NASDAQ: AAPL) the best business he knew of in the world, and Berkshire's massive investment in the tech company makes it clear he has high conviction in that assessment. At roughly 0.4% of Berkshire's total stock portfolio, the tech giant accounts for a small portion of the investment conglomerate's holdings, but Buffett went so far as to describe himself as an "idiot" for not getting in earlier after finally buying shares in the first quarter of 2019. Berkshire Hathaway If you want to invest like the Oracle of Omaha, buying Berkshire Hathaway stock might be the single best way to do it.
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19045.0
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2022-10-04 00:00:00 UTC
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US STOCKS-Growth stocks lift Nasdaq 3% as Treasury yields ease
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https://www.nasdaq.com/articles/us-stocks-growth-stocks-lift-nasdaq-3-as-treasury-yields-ease
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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.
Megacap growth and tech shares bounce 1.3% to 5.4%
Tesla rebounds after worst selloff in four months
U.S. job openings post biggest drop in 2.5 years in August
Rivian jumps on reaffirming FY deliveries view; lifts peers
Indexes up: Dow 2.42%, S&P 2.72%, Nasdaq 3.22%
Updates prices at open
By Ankika Biswas and Bansari Mayur Kamdar
Oct 4 (Reuters) - The Nasdaq led Wall Street higher on Tuesday as megacap growth and technology stocks gaining and U.S. Treasury yields declined amid growing investor speculation that the Federal Reserve would temper its aggressive rate hike path.
New orders for U.S.-manufactured goods remained unchanged in August as expected, while U.S. job openings, a measure of labor demand fell by the most in nearly 2-1/2 years in August.
Following the economic data, yields on government bonds dipped for a second day on hopes of moderation in monetary policy even though San Francisco Federal Reserve Bank President Mary Daly said the central bank needs to deliver further interest rate hikes.
"Job openings data coming in lower than expected points to a weakening labor market. If confirmed by the non-farm payrolls report on Friday it could give the Fed the cover to slow down its tightening," said Thomas Hayes, chairman and managing member of New York-based Great Hill Capital.
"The market loves to see that (weakness in yields and dollar) and it sets up well going into earnings season with expectations so low at 3.2% earnings growth."
The yields on the 10-year U.S. Treasury US10YT=TWEB fell to near two-week lows, lifting rate-sensitive tech and tech-adjacent stocks.
Megacap market leaders such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose around 2.37% to 4.30%, while the Philadelphia SE Semiconductor index .SOX climbed 4.12%.
Consumer discretionary sector .SPLRCD led gains among the 11 S&P 500 sectors, rising over 4%.
At 10:20 a.m. ET, the Dow Jones Industrial Average .DJI was up 714.23 points, or 2.42%, at 30,205.12, the S&P 500 .SPX was up 100.15 points, or 2.72%, at 3,778.58, and the Nasdaq Composite .IXIC was up 347.73 points, or 3.22%, at 11,163.17.
Banks such as Wells Fargo & Co WFC.N, JPMorgan Chase & Co JPM.N and Bank of America Corp BAC.N added more than 3% each.
The rebound in stocks on the first trading day of the final quarter follows the S&P 500's .SPX lowest close in nearly two years on Friday that capped its worst monthly performance since March 2020.
Investors will keep a close watch on comments from Fed speakers including New York President John Williams, Cleveland President Loretta Mester and Governor Philip Jefferson.
Rivian Automotive Inc RIVN.O jumped 8.4% after the electric-vehicle maker said it produced 7,363 units in the third quarter, 67% higher than the preceding quarter, and maintained its full-year target of 25,000.
Tesla Inc TSLA.O bounced back 4.5% from its steepest selloff in four months in the previous session that was triggered by disappointing quarterly vehicle deliveries.
Advancing issues outnumbered decliners by a 13.59-to-1 ratio on the NYSE and a 6.70-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week highs and no new lows, while the Nasdaq recorded 33 new highs and 31 new lows.
(Reporting by Medha Singh, Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva and Arun Koyyur)
((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs;))
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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Megacap market leaders such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose around 2.37% to 4.30%, while the Philadelphia SE Semiconductor index .SOX climbed 4.12%. Megacap growth and tech shares bounce 1.3% to 5.4% Tesla rebounds after worst selloff in four months U.S. job openings post biggest drop in 2.5 years in August Rivian jumps on reaffirming FY deliveries view; lifts peers Indexes up: Dow 2.42%, S&P 2.72%, Nasdaq 3.22% Updates prices at open By Ankika Biswas and Bansari Mayur Kamdar Oct 4 (Reuters) - The Nasdaq led Wall Street higher on Tuesday as megacap growth and technology stocks gaining and U.S. Treasury yields declined amid growing investor speculation that the Federal Reserve would temper its aggressive rate hike path. If confirmed by the non-farm payrolls report on Friday it could give the Fed the cover to slow down its tightening," said Thomas Hayes, chairman and managing member of New York-based Great Hill Capital.
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Megacap market leaders such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose around 2.37% to 4.30%, while the Philadelphia SE Semiconductor index .SOX climbed 4.12%. Megacap growth and tech shares bounce 1.3% to 5.4% Tesla rebounds after worst selloff in four months U.S. job openings post biggest drop in 2.5 years in August Rivian jumps on reaffirming FY deliveries view; lifts peers Indexes up: Dow 2.42%, S&P 2.72%, Nasdaq 3.22% Updates prices at open By Ankika Biswas and Bansari Mayur Kamdar Oct 4 (Reuters) - The Nasdaq led Wall Street higher on Tuesday as megacap growth and technology stocks gaining and U.S. Treasury yields declined amid growing investor speculation that the Federal Reserve would temper its aggressive rate hike path. Following the economic data, yields on government bonds dipped for a second day on hopes of moderation in monetary policy even though San Francisco Federal Reserve Bank President Mary Daly said the central bank needs to deliver further interest rate hikes.
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Megacap market leaders such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose around 2.37% to 4.30%, while the Philadelphia SE Semiconductor index .SOX climbed 4.12%. Megacap growth and tech shares bounce 1.3% to 5.4% Tesla rebounds after worst selloff in four months U.S. job openings post biggest drop in 2.5 years in August Rivian jumps on reaffirming FY deliveries view; lifts peers Indexes up: Dow 2.42%, S&P 2.72%, Nasdaq 3.22% Updates prices at open By Ankika Biswas and Bansari Mayur Kamdar Oct 4 (Reuters) - The Nasdaq led Wall Street higher on Tuesday as megacap growth and technology stocks gaining and U.S. Treasury yields declined amid growing investor speculation that the Federal Reserve would temper its aggressive rate hike path. Following the economic data, yields on government bonds dipped for a second day on hopes of moderation in monetary policy even though San Francisco Federal Reserve Bank President Mary Daly said the central bank needs to deliver further interest rate hikes.
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Megacap market leaders such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose around 2.37% to 4.30%, while the Philadelphia SE Semiconductor index .SOX climbed 4.12%. Megacap growth and tech shares bounce 1.3% to 5.4% Tesla rebounds after worst selloff in four months U.S. job openings post biggest drop in 2.5 years in August Rivian jumps on reaffirming FY deliveries view; lifts peers Indexes up: Dow 2.42%, S&P 2.72%, Nasdaq 3.22% Updates prices at open By Ankika Biswas and Bansari Mayur Kamdar Oct 4 (Reuters) - The Nasdaq led Wall Street higher on Tuesday as megacap growth and technology stocks gaining and U.S. Treasury yields declined amid growing investor speculation that the Federal Reserve would temper its aggressive rate hike path. "Job openings data coming in lower than expected points to a weakening labor market.
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19046.0
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2022-10-04 00:00:00 UTC
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Is This a Red Flag for TSMC Stock?
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https://www.nasdaq.com/articles/is-this-a-red-flag-for-tsmc-stock
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Today's video focuses on Taiwan Semiconductor Manufacturing (NYSE: TSM), Apple (NASDAQ: AAPL), recent reports about pricing negotiations between these two tech giants, and a closer look at TSMC's margins. Due to the semiconductor shortage, TSM's margins have increased dramatically, but will they go back to normal? Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the after-market prices of Oct. 3, 2022. The video was published on Oct. 3, 2022.
10 stocks we like better than Taiwan Semiconductor Manufacturing
When our award-winning 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 Taiwan Semiconductor Manufacturing 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 30, 2022
Jose Najarro has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their 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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Today's video focuses on Taiwan Semiconductor Manufacturing (NYSE: TSM), Apple (NASDAQ: AAPL), recent reports about pricing negotiations between these two tech giants, and a closer look at TSMC's margins. Due to the semiconductor shortage, TSM's margins have increased dramatically, but will they go back to normal? * They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them!
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Today's video focuses on Taiwan Semiconductor Manufacturing (NYSE: TSM), Apple (NASDAQ: AAPL), recent reports about pricing negotiations between these two tech giants, and a closer look at TSMC's margins. The Motley Fool has positions in and recommends Apple and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Today's video focuses on Taiwan Semiconductor Manufacturing (NYSE: TSM), Apple (NASDAQ: AAPL), recent reports about pricing negotiations between these two tech giants, and a closer look at TSMC's margins. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Jose Najarro has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple and Taiwan Semiconductor Manufacturing.
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Today's video focuses on Taiwan Semiconductor Manufacturing (NYSE: TSM), Apple (NASDAQ: AAPL), recent reports about pricing negotiations between these two tech giants, and a closer look at TSMC's margins. See the 10 stocks *Stock Advisor returns as of September 30, 2022 Jose Najarro has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple and Taiwan Semiconductor Manufacturing.
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19047.0
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2022-10-04 00:00:00 UTC
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Apple iPhone exports from India top $1 bln in 5 months - Bloomberg News
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https://www.nasdaq.com/articles/apple-iphone-exports-from-india-top-%241-bln-in-5-months-bloomberg-news
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Adds details, background
Oct 4 (Reuters) - Apple Inc's AAPL.O iPhone exports from India crossed $1 billion in five months since April, Bloomberg News reported on Tuesday, reflecting the tech giant's growing bet on the South Asian nation amid New Delhi's push for local manufacturing.
The outbound shipments of India-made iPhones, mainly to Europe and the Middle East, are set to reach $2.5 billion in the 12 months through March 2023, almost double when compared to the year through March 2022, the report said, citing sources.
Apple started making the iPhone 13 in India earlier this year, and the company announced last week its plans to manufacture the latest iPhone 14. The tech giant has been manufacturing iPhones in India from 2017.
The devices exported from India from April to August this year comprise iPhone 11, 12 and 13 models, Bloomberg said.
The report comes as Apple seeks to shift some areas of iPhone production from China to other markets including India, the second biggest smartphone market in the world, where it is also planning to assemble iPad tablets.
India and countries such as Mexico and Vietnam are increasingly turning important to contract manufacturers supplying to American brands as they seek to diversify production away from China, amid COVID-related lockdowns and simmering tensions between Washington and Beijing.
Apple did not immediately respond to Reuters's request for comment.
(Reporting by Rhea Binoy in Bengaluru; Editing by Dhanya Ann Thoppil)
((Rhea.Binoy@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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Adds details, background Oct 4 (Reuters) - Apple Inc's AAPL.O iPhone exports from India crossed $1 billion in five months since April, Bloomberg News reported on Tuesday, reflecting the tech giant's growing bet on the South Asian nation amid New Delhi's push for local manufacturing. The devices exported from India from April to August this year comprise iPhone 11, 12 and 13 models, Bloomberg said. India and countries such as Mexico and Vietnam are increasingly turning important to contract manufacturers supplying to American brands as they seek to diversify production away from China, amid COVID-related lockdowns and simmering tensions between Washington and Beijing.
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Adds details, background Oct 4 (Reuters) - Apple Inc's AAPL.O iPhone exports from India crossed $1 billion in five months since April, Bloomberg News reported on Tuesday, reflecting the tech giant's growing bet on the South Asian nation amid New Delhi's push for local manufacturing. The tech giant has been manufacturing iPhones in India from 2017. The report comes as Apple seeks to shift some areas of iPhone production from China to other markets including India, the second biggest smartphone market in the world, where it is also planning to assemble iPad tablets.
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Adds details, background Oct 4 (Reuters) - Apple Inc's AAPL.O iPhone exports from India crossed $1 billion in five months since April, Bloomberg News reported on Tuesday, reflecting the tech giant's growing bet on the South Asian nation amid New Delhi's push for local manufacturing. Apple started making the iPhone 13 in India earlier this year, and the company announced last week its plans to manufacture the latest iPhone 14. The report comes as Apple seeks to shift some areas of iPhone production from China to other markets including India, the second biggest smartphone market in the world, where it is also planning to assemble iPad tablets.
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Adds details, background Oct 4 (Reuters) - Apple Inc's AAPL.O iPhone exports from India crossed $1 billion in five months since April, Bloomberg News reported on Tuesday, reflecting the tech giant's growing bet on the South Asian nation amid New Delhi's push for local manufacturing. The outbound shipments of India-made iPhones, mainly to Europe and the Middle East, are set to reach $2.5 billion in the 12 months through March 2023, almost double when compared to the year through March 2022, the report said, citing sources. Apple started making the iPhone 13 in India earlier this year, and the company announced last week its plans to manufacture the latest iPhone 14.
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19048.0
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2022-10-04 00:00:00 UTC
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Exports of India-made iPhones top $1 billion in 5 months - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/exports-of-india-made-iphones-top-%241-billion-in-5-months-bloomberg-news
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nan
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Oct 4 (Reuters) - Apple Inc's AAPL.O iPhone exports from India crossed $1 billion in the five months since April, Bloomberg News reported on Tuesday, citing people familiar with the matter.
The outbound shipments of India-made iPhones, mainly to Europe and the Middle East, are set to reach $2.5 billion in the 12 months through March 2023, the report added.
(Reporting by Rhea Binoy in Bengaluru)
((Rhea.Binoy@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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Oct 4 (Reuters) - Apple Inc's AAPL.O iPhone exports from India crossed $1 billion in the five months since April, Bloomberg News reported on Tuesday, citing people familiar with the matter. The outbound shipments of India-made iPhones, mainly to Europe and the Middle East, are set to reach $2.5 billion in the 12 months through March 2023, the report added. (Reporting by Rhea Binoy in Bengaluru) ((Rhea.Binoy@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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Oct 4 (Reuters) - Apple Inc's AAPL.O iPhone exports from India crossed $1 billion in the five months since April, Bloomberg News reported on Tuesday, citing people familiar with the matter. The outbound shipments of India-made iPhones, mainly to Europe and the Middle East, are set to reach $2.5 billion in the 12 months through March 2023, the report added. (Reporting by Rhea Binoy in Bengaluru) ((Rhea.Binoy@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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Oct 4 (Reuters) - Apple Inc's AAPL.O iPhone exports from India crossed $1 billion in the five months since April, Bloomberg News reported on Tuesday, citing people familiar with the matter. The outbound shipments of India-made iPhones, mainly to Europe and the Middle East, are set to reach $2.5 billion in the 12 months through March 2023, the report added. (Reporting by Rhea Binoy in Bengaluru) ((Rhea.Binoy@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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Oct 4 (Reuters) - Apple Inc's AAPL.O iPhone exports from India crossed $1 billion in the five months since April, Bloomberg News reported on Tuesday, citing people familiar with the matter. The outbound shipments of India-made iPhones, mainly to Europe and the Middle East, are set to reach $2.5 billion in the 12 months through March 2023, the report added. (Reporting by Rhea Binoy in Bengaluru) ((Rhea.Binoy@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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19049.0
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2022-10-04 00:00:00 UTC
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EU lawmakers pass single charger reform for electronic devices
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AAPL
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https://www.nasdaq.com/articles/eu-lawmakers-pass-single-charger-reform-for-electronic-devices
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nan
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adds details, background
BRUSSELS, Oct 4 (Reuters) - The European Parliament approved new rules on Tuesday that will introduce in the European Union a single charging port for mobile phones, tablets and cameras by 2024, a world first that is expected to affect iPhone maker Apple more than its rivals.
The vote confirms an earlier agreement among EU institutions and will make USB-C connectors used by Android-based devices the EU standard, forcing Apple AAPL.O to change its charging port for iPhones and other devices.
The change had been discussed for years and was prompted by complaints from iPhone and Android users about having to switch to different chargers for their devices.
Among big providers of electronic devices to European customers, Apple is expected to be among the most affected, but analysts also expect a possible positive impact because it could encourage shoppers to buy the company's latest gadgets instead of ones without USB-C.
The deal also covers e-readers, ear buds and other technologies, meaning it may also have an impact on Samsung 005930.KS, Huawei [RIC:RIC:HWT.UL] and other device makers, analysts said.
EU lawmakers supported the reform with a large majority, with 602 votes in favour and only 13 against.
(Reporting by Francesco Guarascio; Editing by Andrew Heavens and Catherine Evans)
((Francesco.Guarascio@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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The vote confirms an earlier agreement among EU institutions and will make USB-C connectors used by Android-based devices the EU standard, forcing Apple AAPL.O to change its charging port for iPhones and other devices. adds details, background BRUSSELS, Oct 4 (Reuters) - The European Parliament approved new rules on Tuesday that will introduce in the European Union a single charging port for mobile phones, tablets and cameras by 2024, a world first that is expected to affect iPhone maker Apple more than its rivals. The change had been discussed for years and was prompted by complaints from iPhone and Android users about having to switch to different chargers for their devices.
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The vote confirms an earlier agreement among EU institutions and will make USB-C connectors used by Android-based devices the EU standard, forcing Apple AAPL.O to change its charging port for iPhones and other devices. adds details, background BRUSSELS, Oct 4 (Reuters) - The European Parliament approved new rules on Tuesday that will introduce in the European Union a single charging port for mobile phones, tablets and cameras by 2024, a world first that is expected to affect iPhone maker Apple more than its rivals. The deal also covers e-readers, ear buds and other technologies, meaning it may also have an impact on Samsung 005930.KS, Huawei [RIC:RIC:HWT.UL] and other device makers, analysts said.
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The vote confirms an earlier agreement among EU institutions and will make USB-C connectors used by Android-based devices the EU standard, forcing Apple AAPL.O to change its charging port for iPhones and other devices. adds details, background BRUSSELS, Oct 4 (Reuters) - The European Parliament approved new rules on Tuesday that will introduce in the European Union a single charging port for mobile phones, tablets and cameras by 2024, a world first that is expected to affect iPhone maker Apple more than its rivals. Among big providers of electronic devices to European customers, Apple is expected to be among the most affected, but analysts also expect a possible positive impact because it could encourage shoppers to buy the company's latest gadgets instead of ones without USB-C.
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The vote confirms an earlier agreement among EU institutions and will make USB-C connectors used by Android-based devices the EU standard, forcing Apple AAPL.O to change its charging port for iPhones and other devices. adds details, background BRUSSELS, Oct 4 (Reuters) - The European Parliament approved new rules on Tuesday that will introduce in the European Union a single charging port for mobile phones, tablets and cameras by 2024, a world first that is expected to affect iPhone maker Apple more than its rivals. The change had been discussed for years and was prompted by complaints from iPhone and Android users about having to switch to different chargers for their devices.
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19050.0
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2022-10-04 00:00:00 UTC
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Why Warren Buffett Will Never Buy Bitcoin
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AAPL
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https://www.nasdaq.com/articles/why-warren-buffett-will-never-buy-bitcoin
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nan
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nan
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Warren Buffett is the undisputed greatest investor of all time.
The Berkshire Hathaway chief has trounced the market throughout his career. From 1964 to 2021, Berkshire Hathaway's return is more than 100 times that of the S&P 500.
Along the way, Buffett has become one of the richest people in the world, but he's just as famous for his aphorisms and investing approach as he is for his success. Buffett has strong opinions on investing, and he's made his feelings on Bitcoin (CRYPTO: BTC) well-known.
The Oracle of Omaha has a long history of trashing the world's most valuable cryptocurrency. In 2014, he called it a "mirage" and said, "The idea that it [Bitcoin] has some huge intrinsic value is just a joke in my view." Then, in 2018, he called it "rat poison squared" after warning that Bitcoin was a bubble. Just this year, Buffett insisted he wouldn't buy all the Bitcoin in the world for $25, explaining that it's not a productive asset.
Though Buffett has bent his rule against buying tech stocks in recent years, it's almost certain he'll never buy Bitcoin. Here's why.
There's no way to value Bitcoin
Buffett is a classic value investor. His approach to investing is to buy $1 for $0.80, essentially. Buffett attempts to find an asset's intrinsic value and buy it if it's priced for less than that value. Since Bitcoin is not a productive asset, there's no way to value it properly. Its price is generally determined by what a speculator is willing to pay for it at a given time. Bitcoin itself doesn't generate cash flows or profits for its owner through direct value-building tools such as rental fees or business operations. Buying and selling in Bitcoin are often based on the Greater Fool Theory, meaning people buy it on the assumption that someone will pay even more for it later.
Buffett tends to favor businesses that have proven themselves over a long period. He likes insurance companies and banks, energy and utilities, and big-brand consumer companies like Coca-Cola and Apple.
Bitcoin is the opposite of these assets as it has no real utility at the moment, and its value appears based mostly on hype. Buffett explained, "It's got a magic to it and people have attached magic to lots of things."
Buffett also summarized the issue with Bitcoin's lack of productivity, saying, "Now if you told me you own all of the bitcoin in the world and you offered it to me for $25 I wouldn't take it because what would I do with it? I'd have to sell it back to you one way or another. It isn't going to do anything."
A bet on Bitcoin is a bet against the U.S. dollar
There's another, less conspicuous reason Buffett will never buy Bitcoin. A bet on Bitcoin is, fundamentally, a bet on the upheaval of the global financial system. For Bitcoin to thrive, fiat currencies need to fail or at least weaken. In fact, Bitcoin has gained the most traction in parts of the world where local currencies have been unreliable. For example, some Venezuelans turned to Bitcoin when the bolivar was experiencing hyperinflation; and El Salvador, a country without its own currency, has made Bitcoin legal tender, with mostly disappointing results.
Bitcoin bulls also argue that the cryptocurrency is superior to fiat money because its supply will be capped at 21 million. In contrast, central banks can print fiat currency as they see fit, potentially printing away its value. Since Bitcoin's supply is mathematically restricted, Bitcoiners believe it's a more secure form of currency. It won't lose its value the way the dollar does with inflation over time.
The U.S. dollar is the world's reserve currency, and captains of industry, like Buffett, have huge stakes in its stability. If the dollar were to collapse, it would crush Buffett's fortune and much of his business empire.
Though investing in Bitcoin might seem like a worthwhile hedge to someone in Buffett's position, he doesn't seem to accept a world in which the dollar isn't the U.S.'s de facto currency. Theorizing a Berkshire coin at this year's Berkshire shareholder meeting, he said, "And there's no reason in the world why the United States government ... is going to let Berkshire money replace theirs."
Is Buffett right about Bitcoin?
Buffett's analysis of Bitcoin is mostly correct. Bitcoin is not a productive asset, and there's no good explanation for its price on any given day. However, it seems too early to dismiss Bitcoin as irrelevant. Though Bitcoin hasn't achieved the core functions of currency as a store of value, a medium of exchange, or a unit of account, that could change in the future.
Ultimately, people, not governments, choose what becomes currency -- if enough of the global population adopts Bitcoin as currency, it could gain real value rather than speculative. For now, though, it's clear that a value investor like Buffett would want nothing to do with Bitcoin.
10 stocks we like better than Bitcoin
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Bitcoin. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on 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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Bitcoin itself doesn't generate cash flows or profits for its owner through direct value-building tools such as rental fees or business operations. The U.S. dollar is the world's reserve currency, and captains of industry, like Buffett, have huge stakes in its stability. Though Bitcoin hasn't achieved the core functions of currency as a store of value, a medium of exchange, or a unit of account, that could change in the future.
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See the 10 stocks *Stock Advisor returns as of September 30, 2022 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and Bitcoin. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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Buffett also summarized the issue with Bitcoin's lack of productivity, saying, "Now if you told me you own all of the bitcoin in the world and you offered it to me for $25 I wouldn't take it because what would I do with it? A bet on Bitcoin is a bet against the U.S. dollar There's another, less conspicuous reason Buffett will never buy Bitcoin. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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Just this year, Buffett insisted he wouldn't buy all the Bitcoin in the world for $25, explaining that it's not a productive asset. It isn't going to do anything." Is Buffett right about Bitcoin?
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19051.0
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2022-10-04 00:00:00 UTC
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Technology Sector Update for 10/04/2022: AAPL, SONY, APP, XLK, SOXX
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-10-04-2022%3A-aapl-sony-app-xlk-soxx
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nan
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Technology stocks were rallying pre-bell Tuesday, with the Technology Select Sector SPDR ETF (XLK) up nearly 2% and the Semiconductor Sector Index Fund (SOXX) recently climbing nearly 3%.
Apple's (AAPL) iPhone exports from India have surpassed $1 billion in the five months since April, Bloomberg News reported, citing unnamed people familiar with the matter. Apple shares were nearly 2% higher recently.
Sony Group's (SONY) gaming unit is looking to make new investments to support its expansion into PC, mobile games and live services, Reuters reported, citing Hermen Hulst, head of PlayStation Studios. Sony shares were recently climbing more than 2%.
AppLovin (APP) shares were up past 3% after saying its OpenVessel Technologies unit has launched a non-fungible token marketplace for app stores that allows mobile game developers to integrate NFTs into games to boost revenue.
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's (AAPL) iPhone exports from India have surpassed $1 billion in the five months since April, Bloomberg News reported, citing unnamed people familiar with the matter. Sony Group's (SONY) gaming unit is looking to make new investments to support its expansion into PC, mobile games and live services, Reuters reported, citing Hermen Hulst, head of PlayStation Studios. AppLovin (APP) shares were up past 3% after saying its OpenVessel Technologies unit has launched a non-fungible token marketplace for app stores that allows mobile game developers to integrate NFTs into games to boost revenue.
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Apple's (AAPL) iPhone exports from India have surpassed $1 billion in the five months since April, Bloomberg News reported, citing unnamed people familiar with the matter. Sony Group's (SONY) gaming unit is looking to make new investments to support its expansion into PC, mobile games and live services, Reuters reported, citing Hermen Hulst, head of PlayStation Studios. Sony shares were recently climbing more than 2%.
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Apple's (AAPL) iPhone exports from India have surpassed $1 billion in the five months since April, Bloomberg News reported, citing unnamed people familiar with the matter. Technology stocks were rallying pre-bell Tuesday, with the Technology Select Sector SPDR ETF (XLK) up nearly 2% and the Semiconductor Sector Index Fund (SOXX) recently climbing nearly 3%. Sony Group's (SONY) gaming unit is looking to make new investments to support its expansion into PC, mobile games and live services, Reuters reported, citing Hermen Hulst, head of PlayStation Studios.
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Apple's (AAPL) iPhone exports from India have surpassed $1 billion in the five months since April, Bloomberg News reported, citing unnamed people familiar with the matter. Sony Group's (SONY) gaming unit is looking to make new investments to support its expansion into PC, mobile games and live services, Reuters reported, citing Hermen Hulst, head of PlayStation Studios. Sony shares were recently climbing more than 2%.
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19052.0
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2022-10-04 00:00:00 UTC
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The Bull Case for Intel: TSMC's Crazy Pricing Power
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AAPL
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https://www.nasdaq.com/articles/the-bull-case-for-intel%3A-tsmcs-crazy-pricing-power
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Apple (NASDAQ: AAPL) sells hundreds of millions of devices each year. For those supplying parts or services necessary to get those devices into consumers' hands, winning Apple's business is a huge deal. Some suppliers depend on Apple so heavily that they have no choice but to bow down to Apple's demands, especially if competitors are gunning for the same business.
Taiwan Semiconductor Manufacturing (NYSE: TSM) may be the only Apple supplier where the script is flipped. Apple depends on TSMC to manufacture its custom chips, and TSMC generated around 26% of its total revenue last year from its largest customer, which is presumably Apple. In theory, Apple should have some leverage in pricing negotiations.
TSMC has all the power
The problem is that TSMC is pretty much the only game in town, at least when it comes to manufacturing the most advanced chips. More than half of semiconductors manufactured by third-party foundries come from TSMC, and the company has pulled away in terms of manufacturing technology. TSMC's manufacturing prowess is partly responsible for the incredible performance and efficiency of Apple's chips.
TSMC is reportedly seeking pricing increases for 2023, according to Chinese website The Economic Daily. Prices for 8-inch wafers will be boosted by 6%, while prices for 12-inch wafers will go up by between 3% and 5%. Apple is reportedly going to pay those higher prices after TSMC stood firm on its pricing demands.
This is a situation that's ripe for disruption. If a viable alternative were to emerge, Apple and other large TSMC customers would gain some leverage and no longer be entirely dependent on TSMC. This is where Intel (NASDAQ: INTC) comes in. The chip company is pouring tens of billions of dollars into its manufacturing arm as it builds out its own foundry business.
This effort will take years to bear significant fruit, and Intel will need to win the trust of foundry customers who looked on as the company struggled with manufacturing setbacks over the past few years. Intel will also need to catch up with TSMC on the technology front. The company had an undisputed manufacturing lead for many years, but that lead has slipped away.
Intel's enormous opportunity
Intel's core business is still making CPUs for PCs and servers, and that's not going to change anytime soon. But more than $80 billion is spent at third-party foundries annually, and that number will rise over time as semiconductors find their way into more devices and products. Over the long run, Intel's foundry business has the potential to become a significant portion of its total revenue.
This is the bull case for Intel. There are very few companies capable of building a foundry business that rivals TSMC's, both in terms of expertise and capital. The payoff will be enormous if Intel gets it right.
Intel also has one big advantage: It's a U.S.-based manufacturer. It's building a mega-fab in Ohio, and it's investing in new facilities in Europe. TSMC is working on a U.S. foundry, but the company is based in Taiwan, which is caught in the middle of increasingly contentious relations between the U.S. and China. There's a chance China will invade Taiwan at some point. It's in the best interests of large TSMC customers to seek alternatives, and Intel is looking to play that role.
Right now, as demand for semiconductors takes a hit as sales of PCs, graphics cards, and other products slump, spending billions on more manufacturing capacity may not look like the best idea. But Intel is playing the long game. If those investments pay off, Intel stock could be one of the biggest winners in the semiconductor industry over the next decade.
10 stocks we like better than Intel
When our award-winning 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.*
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*Stock Advisor returns as of September 30, 2022
Timothy Green has positions in Intel. The Motley Fool has positions in and recommends Apple, Intel, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, and short March 2023 $130 calls on 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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Apple (NASDAQ: AAPL) sells hundreds of millions of devices each year. But more than $80 billion is spent at third-party foundries annually, and that number will rise over time as semiconductors find their way into more devices and products. TSMC is working on a U.S. foundry, but the company is based in Taiwan, which is caught in the middle of increasingly contentious relations between the U.S. and China.
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Apple (NASDAQ: AAPL) sells hundreds of millions of devices each year. Over the long run, Intel's foundry business has the potential to become a significant portion of its total revenue. The Motley Fool has positions in and recommends Apple, Intel, and Taiwan Semiconductor Manufacturing.
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Apple (NASDAQ: AAPL) sells hundreds of millions of devices each year. Apple depends on TSMC to manufacture its custom chips, and TSMC generated around 26% of its total revenue last year from its largest customer, which is presumably Apple. The Motley Fool has positions in and recommends Apple, Intel, and Taiwan Semiconductor Manufacturing.
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Apple (NASDAQ: AAPL) sells hundreds of millions of devices each year. Apple depends on TSMC to manufacture its custom chips, and TSMC generated around 26% of its total revenue last year from its largest customer, which is presumably Apple. More than half of semiconductors manufactured by third-party foundries come from TSMC, and the company has pulled away in terms of manufacturing technology.
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19053.0
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2022-10-04 00:00:00 UTC
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US STOCKS-Wall Street futures climb 1% as Treasury yields retreat
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https://www.nasdaq.com/articles/us-stocks-wall-street-futures-climb-1-as-treasury-yields-retreat
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By Medha Singh and Ankika Biswas
Oct 4 (Reuters) - Wall Street futures rose more than 1% on Tuesday as a pullback in U.S. Treasury yields boosted the demand for stocks, with investors waiting for more economic data to gauge the monetary tightening path.
Data on job openings and factory orders will be in focus after the market opens, a day after weaker-than-expected manufacturing activity showed rising rates taming demand for goods.
Yields on government bonds fell on expectations that the Federal Reserve might slowdown, but Bank of New York President John Williams said while there are nascent signs of cooling inflation, price pressures remain too high, implying the U.S. central bank must press forward.
Investors will continue to keep a close watch on commentaries from Fed speakers including New York President John Williams, Cleveland President Loretta Mester and Governor Philip Jefferson.
"With earnings starting next week, it's going to be quite interesting to see how much the inflation is really impacting profits," said Melissa Brown, global head of applied research at Deutsche Boerse-owned Qontigo.
"If profits don't come out maybe as high as expected and you combine that with continuing higher interest rates and therefore, lower justifiable valuations, that's not a good mix to have for a market recovery."
The rebound in stocks on the first trading day of the final quarter follows the S&P 500's .SPX lowest close in nearly two years on Friday that capped its worst monthly performance since March 2020.
At 06:26 a.m. ET, Dow e-minis 1YMcv1 were up 445 points, or 1.51%, S&P 500 e-minis EScv1 were up 65.75 points, or 1.78%, and Nasdaq 100 e-minis NQcv1 were up 248.25 points, or 2.2%.
Yield on the 10-year U.S. Treasury US10YT=TWEB slipped to near two-week lows, lifting rate-sensitive growth stocks.
Megacap stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose between 2.0% and 3.1%.
Rivian Automotive Inc RIVN.O jumped 8.8% after the electric-vehicle maker said it produced 7,363 units in the third quarter, 67% higher than the preceding quarter, and maintained its full-year target of 25,000.
Tesla Inc TSLA.O bounced back 3.6% from its steepest selloff in four months in the previous session that was triggered by disappointing quarterly vehicle deliveries.
(Reporting by Medha Singh and Ankika Biswas in Bengaluru; Editing by Anil D'Silva and Arun Koyyur)
((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs;))
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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Megacap stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose between 2.0% and 3.1%. By Medha Singh and Ankika Biswas Oct 4 (Reuters) - Wall Street futures rose more than 1% on Tuesday as a pullback in U.S. Treasury yields boosted the demand for stocks, with investors waiting for more economic data to gauge the monetary tightening path. "With earnings starting next week, it's going to be quite interesting to see how much the inflation is really impacting profits," said Melissa Brown, global head of applied research at Deutsche Boerse-owned Qontigo.
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Megacap stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose between 2.0% and 3.1%. Yields on government bonds fell on expectations that the Federal Reserve might slowdown, but Bank of New York President John Williams said while there are nascent signs of cooling inflation, price pressures remain too high, implying the U.S. central bank must press forward. Investors will continue to keep a close watch on commentaries from Fed speakers including New York President John Williams, Cleveland President Loretta Mester and Governor Philip Jefferson.
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Megacap stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose between 2.0% and 3.1%. By Medha Singh and Ankika Biswas Oct 4 (Reuters) - Wall Street futures rose more than 1% on Tuesday as a pullback in U.S. Treasury yields boosted the demand for stocks, with investors waiting for more economic data to gauge the monetary tightening path. Yields on government bonds fell on expectations that the Federal Reserve might slowdown, but Bank of New York President John Williams said while there are nascent signs of cooling inflation, price pressures remain too high, implying the U.S. central bank must press forward.
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Megacap stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose between 2.0% and 3.1%. By Medha Singh and Ankika Biswas Oct 4 (Reuters) - Wall Street futures rose more than 1% on Tuesday as a pullback in U.S. Treasury yields boosted the demand for stocks, with investors waiting for more economic data to gauge the monetary tightening path. Data on job openings and factory orders will be in focus after the market opens, a day after weaker-than-expected manufacturing activity showed rising rates taming demand for goods.
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19054.0
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2022-10-04 00:00:00 UTC
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Better Buy: Apple Stock or the Entire Nasdaq?
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AAPL
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https://www.nasdaq.com/articles/better-buy%3A-apple-stock-or-the-entire-nasdaq
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Although this bear market has been brutal, investors who have prudent long-term plans and are adding to their portfolios on a regular basis may be licking their chops. After all, bear markets are only worrisome if you need cash in the near term. For long-term investors, bear markets are terrific opportunity to add high-quality names at discounted prices.
This year, exciting technology stocks that have outperformed over the past decade are down much more than the broader market. That means tech stocks could be among the best buys for the long-term investor today.
Among the most-loved tech stocks is Apple (NASDAQ: AAPL), a Warren Buffett favorite and the largest stock in the Nasdaq Composite and S&P 500 indices. But with investors able to get diversified exposure through low-cost exchange-traded funds, is Apple a better buy today than the beaten-down technology index overall?
Year to date, Apple has been more resilient
Even though the smartphone and PC markets are in for a decline this year, Apple's stock has actually outperformed the Nasdaq Composite year to date, declining nearly 22% versus a 32% decline for the Nasdaq index.
Why the outperformance? Well, unlike many tech stocks, Apple generates substantial free cash flow on a consistent basis. Although profits do bounce around depending on overall device sales, Apple's brand power allows the company to charge a premium compared to other device makers. And its vertically integrated structure, in which it makes its own operating system, software, and even some of its own semiconductors, also helps margins due to cost efficiency.
Meanwhile, global scale allows the company to generate substantial leverage on its fixed costs at headquarters and in research and development. Finally, Apple has done a great job developing and growing its high-margin services segment, which accounted for about 31% of total sales last quarter.
The importance of smartphones, recurring services revenue tied to a growing installed base, and consistent cash flow have transformed the way investors see the company in recent years. Whereas it was often viewed as a cyclical hardware maker in the early part of the past decade, many investors now see Apple more as a safe consumer staple.
That has spurred them to pay a higher multiple for Apple, as its price-to-earnings ratio has increased from the low teens before 2018 to a low- to mid-20s P/E today:
AAPL PE Ratio data by YCharts.
Near-identical multiples
Today, Apple's P/E of 22.8 is virtually identical to the overall P/E ratio of the Nasdaq, at 22.9.
The similarity is interesting: Apple, as the largest company in the world, will probably struggle to grow as fast as smaller technology stocks that are earlier in their corporate lives, or are currently in a cyclical downturn that will snap back when the economy turns around.
The Nasdaq's multiple has actually fallen more than Apple's over the past year, with the former falling from 34 to 22.9, and the latter falling from the high 20s to 22.8. The difference likely has to do with risk, as Apple is perceived as a safer name than the average Nasdaq stock.
But is the Nasdaq due for a snapback?
Over the course of the past 10 years, Apple has outperformed the Nasdaq Composite by a considerable amount, growing investors' wealth by 487%, versus just 240% for the Nasdaq. However, Apple was actually trailing the Nasdaq Composite for the first eight years of that time frame, only shooting higher as the pandemic hit:
AAPL data by YCharts.
The recent extreme outperformance makes me nervous as an Apple shareholder: It's possible it could reverse, at least to some degree.
In recent weeks and months, some key components of the Nasdaq have also taken a beating. For instance, large Nasdaq component Adobe cratered after announcing its $20 billion acquisition of Figma. Meta Platforms, another large component, is down a huge amount on the slowdown in social media advertising, competition from TikTok, and high spending on the metaverse. The Nasdaq also contains lots of cyclical semiconductor stocks, which have also fallen much more than Apple and the broader market on concerns over an economic slowdown.
Given the big decline in Nasdaq stocks, I think Nasdaq components have more room to grow their P/E ratios on a recovery -- Apple is already a very large company, making it harder to grow. So it's quite possible the Nasdaq will outperform it over the next year.
But the long term may belong to Apple
It's interesting to compare Apple and the broader Nasdaq, as they actually do a lot of the same things for their owners. Apple is a relatively safe stock with a wide moat based on a premium brand, excellent management, and diversified revenue streams. In that sense, it's "safer" than the average Nasdaq stock.
On the other hand, you get additional safety in the diversification in the Nasdaq. It gives you exposure to younger, higher-growth companies, but will also expose you to some underperformers. With an index fund, investors' return is roughly that of the underlying index. That takes away the risk of outsized relative losses, but also means average performance.
In other words, the diversification of the Nasdaq does a lot of the same things that the "staple" status does for Apple. Making the decision more complicated, Apple actually makes up 13.3% of the Nasdaq today, so with a Nasdaq-based fund you're still getting significant exposure to Apple.
How to decide?
So what to do? After its recent run of outperformance, I think the Nasdaq could very well be a better buy for investors over the next one to two years. However, over the long term, I also think Apple's brand and high profits should prove more resilient than the average Nasdaq stock.
On the other hand, if you do buy Apple over the Nasdaq, you're also taking single-stock risk. As we've seen with stocks like Meta, even seemingly invincible market leaders can stumble at times.
Therefore, either path looks like a good choice, depending on your orientation as an investor. Risk-averse investors may want to go with a Nasdaq-based fund for diversification; if you hold a more concentrated, high-quality portfolio for the long term, as Warren Buffett does, Apple could be the way to go. It's a pretty close call, and a matter of investor preference.
10 stocks we like better than Apple
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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. Billy Duberstein has positions in Apple and Meta Platforms and has the following options: short January 2023 $210 calls on Apple. His clients may own shares of the companies mentioned.
The Motley Fool has positions in and recommends Adobe, Apple, and Meta Platforms. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe, long March 2023 $120 calls on Apple, short January 2024 $430 calls on Adobe, and short March 2023 $130 calls on 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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Among the most-loved tech stocks is Apple (NASDAQ: AAPL), a Warren Buffett favorite and the largest stock in the Nasdaq Composite and S&P 500 indices. That has spurred them to pay a higher multiple for Apple, as its price-to-earnings ratio has increased from the low teens before 2018 to a low- to mid-20s P/E today: AAPL PE Ratio data by YCharts. However, Apple was actually trailing the Nasdaq Composite for the first eight years of that time frame, only shooting higher as the pandemic hit: AAPL data by YCharts.
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Among the most-loved tech stocks is Apple (NASDAQ: AAPL), a Warren Buffett favorite and the largest stock in the Nasdaq Composite and S&P 500 indices. That has spurred them to pay a higher multiple for Apple, as its price-to-earnings ratio has increased from the low teens before 2018 to a low- to mid-20s P/E today: AAPL PE Ratio data by YCharts. However, Apple was actually trailing the Nasdaq Composite for the first eight years of that time frame, only shooting higher as the pandemic hit: AAPL data by YCharts.
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Among the most-loved tech stocks is Apple (NASDAQ: AAPL), a Warren Buffett favorite and the largest stock in the Nasdaq Composite and S&P 500 indices. That has spurred them to pay a higher multiple for Apple, as its price-to-earnings ratio has increased from the low teens before 2018 to a low- to mid-20s P/E today: AAPL PE Ratio data by YCharts. However, Apple was actually trailing the Nasdaq Composite for the first eight years of that time frame, only shooting higher as the pandemic hit: AAPL data by YCharts.
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Among the most-loved tech stocks is Apple (NASDAQ: AAPL), a Warren Buffett favorite and the largest stock in the Nasdaq Composite and S&P 500 indices. That has spurred them to pay a higher multiple for Apple, as its price-to-earnings ratio has increased from the low teens before 2018 to a low- to mid-20s P/E today: AAPL PE Ratio data by YCharts. However, Apple was actually trailing the Nasdaq Composite for the first eight years of that time frame, only shooting higher as the pandemic hit: AAPL data by YCharts.
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19055.0
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2022-10-04 00:00:00 UTC
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US STOCKS-Wall St set to open higher as easing Treasury yields lift growth stocks
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-higher-as-easing-treasury-yields-lift-growth-stocks
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nan
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By Ankika Biswas and Medha Singh
Oct 4 (Reuters) - Wall Street futures rose more than 1% on Tuesday as easing U.S. Treasury yields boosted megacap growth and technology stocks, while investors awaited more economic data to gauge the Federal Reserve's rate hike path.
Data on job openings and factory orders will be in focus after the market opens, a day after weaker-than-expected manufacturing activity showed rising rates taming demand for goods.
Yields on government bonds fell on hopes that the Federal Reserve tap down its aggressive stance, but Bank of New York President John Williams said despite nascent signs of cooling inflation, price pressures remain too high, implying the U.S. central bank must press forward.
"The biggest story here is that last week you saw the Bank of England blink and investors around the world are starting to realize that there are limits to central banks' hawkishness before things start to break," said Thomas Hayes, chairman and managing member of New York-based Great Hill Capital.
"The market loves to see that (weakness in yields and dollar) and it sets up well going into earnings season with expectations so low at 3.2% earnings growth."
The yields on the 10-year U.S. Treasury US10YT=TWEB extended their decline, lifting rate-sensitive growth and technology stocks in trading before the bell.
Megacap stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose around 1.6% to 2.6%.
At 8:32 a.m. ET, Dow e-minis 1YMcv1 were up 389 points, or 1.32%, S&P 500 e-minis EScv1 were up 58.5 points, or 1.59%, and Nasdaq 100 e-minis NQcv1 were up 213 points, or 1.89%.
Banks such as Wells Fargo & Co WFC.N, JPMorgan Chase & Co JPM.N and Bank of America Corp BAC.N added nearly 2% each.
The rebound in stocks on the first trading day of the final quarter follows the S&P 500's .SPX lowest close in nearly two years on Friday that capped its worst monthly performance since March 2020.
Investors will continue to keep a close watch on comments from Fed speakers including New York President John Williams, Cleveland President Loretta Mester and Governor Philip Jefferson.
Rivian Automotive Inc RIVN.O jumped 7.6% after the electric-vehicle maker said it produced 7,363 units in the third quarter, 67% higher than the preceding quarter, and maintained its full-year target of 25,000.
Tesla Inc TSLA.O bounced back 2.9% from its steepest selloff in four months in the previous session that was triggered by disappointing quarterly vehicle deliveries.
(Reporting by Medha Singh, Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva and Arun Koyyur)
((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs;))
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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Megacap stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose around 1.6% to 2.6%. By Ankika Biswas and Medha Singh Oct 4 (Reuters) - Wall Street futures rose more than 1% on Tuesday as easing U.S. Treasury yields boosted megacap growth and technology stocks, while investors awaited more economic data to gauge the Federal Reserve's rate hike path. The rebound in stocks on the first trading day of the final quarter follows the S&P 500's .SPX lowest close in nearly two years on Friday that capped its worst monthly performance since March 2020.
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Megacap stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose around 1.6% to 2.6%. By Ankika Biswas and Medha Singh Oct 4 (Reuters) - Wall Street futures rose more than 1% on Tuesday as easing U.S. Treasury yields boosted megacap growth and technology stocks, while investors awaited more economic data to gauge the Federal Reserve's rate hike path. Investors will continue to keep a close watch on comments from Fed speakers including New York President John Williams, Cleveland President Loretta Mester and Governor Philip Jefferson.
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Megacap stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose around 1.6% to 2.6%. By Ankika Biswas and Medha Singh Oct 4 (Reuters) - Wall Street futures rose more than 1% on Tuesday as easing U.S. Treasury yields boosted megacap growth and technology stocks, while investors awaited more economic data to gauge the Federal Reserve's rate hike path. Yields on government bonds fell on hopes that the Federal Reserve tap down its aggressive stance, but Bank of New York President John Williams said despite nascent signs of cooling inflation, price pressures remain too high, implying the U.S. central bank must press forward.
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Megacap stocks such as Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose around 1.6% to 2.6%. By Ankika Biswas and Medha Singh Oct 4 (Reuters) - Wall Street futures rose more than 1% on Tuesday as easing U.S. Treasury yields boosted megacap growth and technology stocks, while investors awaited more economic data to gauge the Federal Reserve's rate hike path. Yields on government bonds fell on hopes that the Federal Reserve tap down its aggressive stance, but Bank of New York President John Williams said despite nascent signs of cooling inflation, price pressures remain too high, implying the U.S. central bank must press forward.
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19056.0
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2022-10-04 00:00:00 UTC
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EU Parliament adopts rules for common charger for electronic devices
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AAPL
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https://www.nasdaq.com/articles/eu-parliament-adopts-rules-for-common-charger-for-electronic-devices
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nan
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BRUSSELS, Oct 4 (Reuters) - The European Parliament approved new rules on Tuesday that will introduce in the European Union a single charging port for mobile phones, tablets and cameras by 2024, in a world first.
The vote confirms an earlier agreement among EU institutions and will make USB-C connectors used by Android-based devices the EU standard, forcing Apple AAPL.O to change its charging port for iPhones and other devices.
(Reporting by Francesco Guarascio; Editing by Andrew Heavens)
((Francesco.Guarascio@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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The vote confirms an earlier agreement among EU institutions and will make USB-C connectors used by Android-based devices the EU standard, forcing Apple AAPL.O to change its charging port for iPhones and other devices. BRUSSELS, Oct 4 (Reuters) - The European Parliament approved new rules on Tuesday that will introduce in the European Union a single charging port for mobile phones, tablets and cameras by 2024, in a world first. (Reporting by Francesco Guarascio; Editing by Andrew Heavens) ((Francesco.Guarascio@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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The vote confirms an earlier agreement among EU institutions and will make USB-C connectors used by Android-based devices the EU standard, forcing Apple AAPL.O to change its charging port for iPhones and other devices. BRUSSELS, Oct 4 (Reuters) - The European Parliament approved new rules on Tuesday that will introduce in the European Union a single charging port for mobile phones, tablets and cameras by 2024, in a world first. (Reporting by Francesco Guarascio; Editing by Andrew Heavens) ((Francesco.Guarascio@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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The vote confirms an earlier agreement among EU institutions and will make USB-C connectors used by Android-based devices the EU standard, forcing Apple AAPL.O to change its charging port for iPhones and other devices. BRUSSELS, Oct 4 (Reuters) - The European Parliament approved new rules on Tuesday that will introduce in the European Union a single charging port for mobile phones, tablets and cameras by 2024, in a world first. (Reporting by Francesco Guarascio; Editing by Andrew Heavens) ((Francesco.Guarascio@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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The vote confirms an earlier agreement among EU institutions and will make USB-C connectors used by Android-based devices the EU standard, forcing Apple AAPL.O to change its charging port for iPhones and other devices. BRUSSELS, Oct 4 (Reuters) - The European Parliament approved new rules on Tuesday that will introduce in the European Union a single charging port for mobile phones, tablets and cameras by 2024, in a world first. (Reporting by Francesco Guarascio; Editing by Andrew Heavens) ((Francesco.Guarascio@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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19057.0
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2022-10-04 00:00:00 UTC
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Should Vanguard LargeCap ETF (VV) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-largecap-etf-vv-be-on-your-investing-radar-4
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Launched on 01/27/2004, the Vanguard LargeCap ETF (VV) 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 Vanguard. It has amassed assets over $23.13 billion, making it one of the largest 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
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 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.68%.
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 27.40% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.99% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 27.32% of total assets under management.
Performance and Risk
VV seeks to match the performance of the CRSP US Large Cap Index before fees and expenses. The CRSP US Large Cap Index includes U.S. companies that comprise the top 85% of investable market capitalization and are traded on NYSE, NYSE Market, NASDAQ or ARCA.
The ETF has lost about -23.38% so far this year and is down about -16.07% in the last one year (as of 10/04/2022). In the past 52-week period, it has traded between $163.56 and $221.75.
The ETF has a beta of 1.02 and standard deviation of 24.70% for the trailing three-year period, making it a medium risk choice in the space. With about 581 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard LargeCap 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, VV is a reasonable 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 $275.37 billion in assets, SPDR S&P 500 ETF has $333.93 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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Vanguard LargeCap ETF (VV): 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.
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 6.99% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Launched on 01/27/2004, the Vanguard LargeCap ETF (VV) 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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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.99% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Performance and Risk VV seeks to match the performance of the CRSP US Large Cap Index before fees and expenses.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.99% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Alternatives Vanguard LargeCap 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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Apple Inc. (AAPL): Free Stock Analysis Report Looking at individual holdings, Apple Inc. (AAPL) accounts for about 6.99% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
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19058.0
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2022-10-04 00:00:00 UTC
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US STOCKS-Wall St futures jump as Treasury yields retreat
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-futures-jump-as-treasury-yields-retreat
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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 up: Dow 1.24%, S&P 1.46%, Nasdaq 1.80%
Oct 4 (Reuters) - Wall Street futures jumped on Tuesday as retreating U.S. Treasury yields bolstered demand for stocks, while investors awaited clues on how much further the U.S. Federal Reserve would go with interest rate hikes to rein in surging prices.
Data on job openings and factory orders will be in focus before the market opens, a day after a report showing weaker-than-expected manufacturing activity raised investor hopes that rising rates were taming demand for goods, helping the main indexes stage a strong rebound.
However, Federal Reserve Bank of New York President John Williams argued on Monday that while there have been nascent signs of cooling inflation, underlying price pressures remain too high, which means the U.S. central bank must press forward.
The rebound in stocks on the first trading day of the final quarter follows the S&P 500's .SPX lowest close in nearly two years on Friday that capped its worst monthly performance since March 2020 on fears the Fed's aggressive rate hikes will cause an economic downturn.
At 4:39 a.m. ET, Dow e-minis 1YMcv1 were up 367 points, or 1.24%, S&P 500 e-minis EScv1 were up 54 points, or 1.46%, and Nasdaq 100 e-minis NQcv1 were up 203 points, or 1.8%.
Yield on the 10-year U.S. Treasury US10YT=TWEB slipped to near two-week lows, lifting rate-sensitive growth stocks. Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose between 1.5% and 2.5%.
Rivian Automotive Inc RIVN.O jumped 7.2% after the electric vehicle maker said it produced 7,363 vehicles in the third quarter, 67% higher than the preceding quarter, and maintained its full-year target of 25,000.
Tesla Inc TSLA.O bounced back 3.1% from its steepest selloff in four months in the previous session that was triggered by disappointing quarterly vehicle deliveries.
(Reporting by Medha Singh in Bengaluru; Editing by Anil D'Silva)
((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs;))
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.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose between 1.5% and 2.5%. Data on job openings and factory orders will be in focus before the market opens, a day after a report showing weaker-than-expected manufacturing activity raised investor hopes that rising rates were taming demand for goods, helping the main indexes stage a strong rebound. The rebound in stocks on the first trading day of the final quarter follows the S&P 500's .SPX lowest close in nearly two years on Friday that capped its worst monthly performance since March 2020 on fears the Fed's aggressive rate hikes will cause an economic downturn.
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Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose between 1.5% and 2.5%. Futures up: Dow 1.24%, S&P 1.46%, Nasdaq 1.80% Oct 4 (Reuters) - Wall Street futures jumped on Tuesday as retreating U.S. Treasury yields bolstered demand for stocks, while investors awaited clues on how much further the U.S. Federal Reserve would go with interest rate hikes to rein in surging prices. However, Federal Reserve Bank of New York President John Williams argued on Monday that while there have been nascent signs of cooling inflation, underlying price pressures remain too high, which means the U.S. central bank must press forward.
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Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose between 1.5% and 2.5%. Futures up: Dow 1.24%, S&P 1.46%, Nasdaq 1.80% Oct 4 (Reuters) - Wall Street futures jumped on Tuesday as retreating U.S. Treasury yields bolstered demand for stocks, while investors awaited clues on how much further the U.S. Federal Reserve would go with interest rate hikes to rein in surging prices. Data on job openings and factory orders will be in focus before the market opens, a day after a report showing weaker-than-expected manufacturing activity raised investor hopes that rising rates were taming demand for goods, helping the main indexes stage a strong rebound.
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Apple Inc AAPL.O, Microsoft Corp MSFT.O, Alphabet Inc GOOGL.O and Nvidia Corp NVDA.O rose between 1.5% and 2.5%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures up: Dow 1.24%, S&P 1.46%, Nasdaq 1.80% Oct 4 (Reuters) - Wall Street futures jumped on Tuesday as retreating U.S. Treasury yields bolstered demand for stocks, while investors awaited clues on how much further the U.S. Federal Reserve would go with interest rate hikes to rein in surging prices.
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19059.0
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2022-10-04 00:00:00 UTC
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Down 30%, Is Microsoft Stock a Buy Now?
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AAPL
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https://www.nasdaq.com/articles/down-30-is-microsoft-stock-a-buy-now
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nan
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Bear markets are never fun. But savvy investors know that economic downturns, while painful, can give you a chance to build enormous wealth in the stock market by buying shares of excellent companies at steeply discounted prices.
One such excellent company is Microsoft (NASDAQ: MSFT). Let's take a closer look at the company (and the stock) to see if this technology leader presents such an opportunity at the moment.
The bull case for Microsoft's stock
Powerful global trends drive Microsoft's expansion. Businesses are digitizing their operations and shifting them to the cloud, boosting demand for the tech titan's productivity software and cloud computing services. At the same time, billions of people around the world are turning to digital forms of entertainment, fueling the growth of Microsoft's popular Xbox gaming console and streaming offerings.
Microsoft's leadership positioned the company -- and its investors -- to profit handsomely from these trends. Since becoming CEO in 2014, Satya Nadella prioritized mobile- and cloud-based services, while de-emphasizing traditional desktop software licenses. That decision proved prescient. Microsoft now stands as a key enabler of the digital transformation megatrend. And its long-term investors are richer for it, despite the recent downturn in its stock price.
Microsoft's strong returns to shareholders over the past half-decade were driven by its sterling financial results. The tech giant continues to generate an astounding amount of profit and cash flow, including $73 billion in net income and $65 billion in free cash flow over the trailing 12 months. This impressive cash production allowed Microsoft to reward its investors with bountiful share repurchases and a steadily rising dividend income stream.
MSFT Stock Buybacks (Quarterly) data by YCharts.
Microsoft's incredible cash flow generation and massive cash reserves -- which exceeded $100 billion as of June 30 -- also enable it to acquire other attractive growth companies. For example, Microsoft struck a deal to purchase video game leader Activision Blizzard for a whopping $68.7 billion in January to further bolster its gaming business.
Risks for investors to consider
Fears of a potential recession drive many businesses to pare back their technology investments. Evidence of this can be seen in the deceleration in Microsoft's year-over-year revenue growth to 12% in its most recent quarter from 18% in the prior quarter and 21% in the year-ago period. Yet the tech juggernaut's diversified business lines and fortress-like balance sheet should allow it to invest in its own operations straight through the current economic downturn. This, in turn, ought to further strengthen Microsoft's competitive position versus its smaller and less financially sound rivals.
A select few competitors, however, can match Microsoft's scale. Amazon (NASDAQ: AMZN) for one, is actually the market leader in cloud computing services. Amazon Web Services (AWS) holds a formidable presence in the cloud infrastructure arena, with a 34% market share, according to Synergy Research Group. Microsoft's Azure platform is second with a 21% share. This gap could narrow in the coming years, as Azure is growing at a faster pace than AWS. Still, this is a battle that investors should watch closely.
Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) should also not be overlooked. Apple's Macs and Google's Chromebooks are gaining ground in the personal computer marketplace. Macs hold a large share of the high-end computer market, while Chromebooks are popular among cost-sensitive buyers like schools and students. However, Microsoft's Windows operating system still leads in the enormous corporate desktop PC market, with a commanding 76% share.
Microsoft stock has a reasonable valuation
Like many tech stocks, Microsoft's share price is down sharply in 2022. After a nearly 30% decline, its shares can now be had for roughly 23 times Wall Street's earnings projections for this year and less than 20 times analysts' estimates for next year. That's a sensible price to pay for a technological and financial goliath that's forecast to grow profits by more than 15% annually over the next half-decade.
Income-focused investors will also appreciate Microsoft's modest but rapidly growing dividend. Just days ago, its board of directors approved a 10% increase to its quarterly cash payout, bringing its current yield to a respectable (for a tech growth stock) 1.2%.
So, is Microsoft's stock a buy?
With its strong position within the cloud, gaming, and digital transformation megatrends, Microsoft has many years of growth still ahead. Although powerful rivals continue to pose challenges, the tech giant's entrenched position and financial fortitude should allow it to hold its competitors at bay in some markets and expand its presence in others.
Better still, long-term investors currently have the opportunity to begin or add to a position in this proven winner at a significantly discounted price. For all these reasons, Microsoft's stock looks like an attractive buy today.
10 stocks we like better than Microsoft
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Joe Tenebruso has the following options: long January 2024 $100 calls on Amazon.
The Motley Fool has positions in and recommends Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) should also not be overlooked. But savvy investors know that economic downturns, while painful, can give you a chance to build enormous wealth in the stock market by buying shares of excellent companies at steeply discounted prices. At the same time, billions of people around the world are turning to digital forms of entertainment, fueling the growth of Microsoft's popular Xbox gaming console and streaming offerings.
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Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) should also not be overlooked. With its strong position within the cloud, gaming, and digital transformation megatrends, Microsoft has many years of growth still ahead. The Motley Fool has positions in and recommends Activision Blizzard, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Microsoft.
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Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) should also not be overlooked. The bull case for Microsoft's stock Powerful global trends drive Microsoft's expansion. Microsoft stock has a reasonable valuation Like many tech stocks, Microsoft's share price is down sharply in 2022.
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Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) should also not be overlooked. But savvy investors know that economic downturns, while painful, can give you a chance to build enormous wealth in the stock market by buying shares of excellent companies at steeply discounted prices. With its strong position within the cloud, gaming, and digital transformation megatrends, Microsoft has many years of growth still ahead.
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19060.0
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2022-10-04 00:00:00 UTC
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Apple supplier Foxconn 'cautiously optimistic' about Q4 outlook
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AAPL
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https://www.nasdaq.com/articles/apple-supplier-foxconn-cautiously-optimistic-about-q4-outlook
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nan
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nan
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Taiwan's Foxconn 'cautiously optimistic' on Q4
Company reports record September, Q3 sales
Warns it still needs to monitor inflation, COVID-19
Adds further comments from company, context
TAIPEI, Oct 4 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, said on Tuesday it was "cautiously optimistic" about its fourth-quarter revenue outlook after reporting record-breaking September sales.
Like other global manufacturers, the Taiwanese company, a major Apple Inc AAPL.O supplier, could be vulnerable to slowing consumer tech demand as the global economy faces the possibility of recession and inflation soars, especially in Europe and the United States.
But the company said in a statement it was "cautiously optimistic" about the outlook for the final three months of 2022, and maintained its full-year guidance of growth given in August, from previous guidance of flattish revenue.
"However, the dynamics of inflation, the pandemic, and the supply chain still need to be closely monitored," it said.
Formally known as Hon Hai Precision Industry Co Ltd, the company said revenue for September and the third quarter grew 40.39% and 24.4% on the year, respectively, both hitting record highs and beating its own expectations.
Revenue from smart consumer electronics, which includes its key smartphone business, showed strong double-digit growth in the third quarter, thanks to new product launches and "smooth mass production", it added.
Apple's new iPhone 14 went on sale last month.
The company, which has grappled with COVID-19 lockdowns and electricity rationing in China disrupting its supply chain, had previously forecast flat revenue growth for the third quarter for consumer electronics, including smartphones.
Revenue gained 13.66% in the first nine months of 2022, it said.
Analysts have said the popularity of new premium iPhones would boost Foxconn's business, while continued server demand from major clients, including Amazon.com Inc AMZN.O, would also counter industry headwinds as global tech demand slows.
The fourth quarter is traditionally the hot season for Taiwan's tech companies as they race to supply cellphones, tablets and other electronics for the year-end holiday period in Western markets.
Foxconn releases third-quarter earnings on Nov. 10.
Its shares closed up 1.5% on Tuesday, underperforming the benchmark index .TWII, which gained 2.1%. Foxconn shares have dropped 1.4% this year, giving it a market value of $44.03 billion.
(Reporting by Yimou Lee and Ben Blanchard; Editing by Louise Heavens 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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Like other global manufacturers, the Taiwanese company, a major Apple Inc AAPL.O supplier, could be vulnerable to slowing consumer tech demand as the global economy faces the possibility of recession and inflation soars, especially in Europe and the United States. Formally known as Hon Hai Precision Industry Co Ltd, the company said revenue for September and the third quarter grew 40.39% and 24.4% on the year, respectively, both hitting record highs and beating its own expectations. The company, which has grappled with COVID-19 lockdowns and electricity rationing in China disrupting its supply chain, had previously forecast flat revenue growth for the third quarter for consumer electronics, including smartphones.
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Like other global manufacturers, the Taiwanese company, a major Apple Inc AAPL.O supplier, could be vulnerable to slowing consumer tech demand as the global economy faces the possibility of recession and inflation soars, especially in Europe and the United States. Taiwan's Foxconn 'cautiously optimistic' on Q4 Company reports record September, Q3 sales Warns it still needs to monitor inflation, COVID-19 Adds further comments from company, context TAIPEI, Oct 4 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, said on Tuesday it was "cautiously optimistic" about its fourth-quarter revenue outlook after reporting record-breaking September sales. The company, which has grappled with COVID-19 lockdowns and electricity rationing in China disrupting its supply chain, had previously forecast flat revenue growth for the third quarter for consumer electronics, including smartphones.
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Like other global manufacturers, the Taiwanese company, a major Apple Inc AAPL.O supplier, could be vulnerable to slowing consumer tech demand as the global economy faces the possibility of recession and inflation soars, especially in Europe and the United States. Taiwan's Foxconn 'cautiously optimistic' on Q4 Company reports record September, Q3 sales Warns it still needs to monitor inflation, COVID-19 Adds further comments from company, context TAIPEI, Oct 4 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, said on Tuesday it was "cautiously optimistic" about its fourth-quarter revenue outlook after reporting record-breaking September sales. The company, which has grappled with COVID-19 lockdowns and electricity rationing in China disrupting its supply chain, had previously forecast flat revenue growth for the third quarter for consumer electronics, including smartphones.
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Like other global manufacturers, the Taiwanese company, a major Apple Inc AAPL.O supplier, could be vulnerable to slowing consumer tech demand as the global economy faces the possibility of recession and inflation soars, especially in Europe and the United States. Taiwan's Foxconn 'cautiously optimistic' on Q4 Company reports record September, Q3 sales Warns it still needs to monitor inflation, COVID-19 Adds further comments from company, context TAIPEI, Oct 4 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker, said on Tuesday it was "cautiously optimistic" about its fourth-quarter revenue outlook after reporting record-breaking September sales. The company, which has grappled with COVID-19 lockdowns and electricity rationing in China disrupting its supply chain, had previously forecast flat revenue growth for the third quarter for consumer electronics, including smartphones.
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19061.0
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2022-10-03 00:00:00 UTC
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Mobile phone critic Pope Francis meets Apple chief Tim Cook
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AAPL
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https://www.nasdaq.com/articles/mobile-phone-critic-pope-francis-meets-apple-chief-tim-cook
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nan
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nan
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By Philip Pullella
VATICAN CITY, Oct 3 (Reuters) - Pope Francis, who has often said people should limit their use of cellphones and give preference to personal communication, granted a private audience on Monday to Apple Chief Executive Tim Cook.
Cook, head of the $2.4 trillion company whose iPhone has revolutionised personal communication, was on the pope's daily audience list. As is customary, the Vatican did not disclose what was discussed during the private conversation.
The 85-year-old pope has a mixed relationship with cellphones. Last year, he interrupted his general audience when an aide passed him a cellphone and took an urgent call from a senior Vatican official.
He often patiently allows people to take selfies with him.
But he has also regularly warned people against becoming slaves to cellphones and other forms of technology.
"Free yourself from the addiction to mobile phones," he told young people in 2019. "When you become a slave to your mobile phone, you lose your freedom."
On other occasions, he has said it was sad that people use their cellphone at the dinner table or while attending Mass.
(Reporting by Philip Pullella Editing by Bernadette Baum)
((philip.pullella@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 Philip Pullella VATICAN CITY, Oct 3 (Reuters) - Pope Francis, who has often said people should limit their use of cellphones and give preference to personal communication, granted a private audience on Monday to Apple Chief Executive Tim Cook. Cook, head of the $2.4 trillion company whose iPhone has revolutionised personal communication, was on the pope's daily audience list. Last year, he interrupted his general audience when an aide passed him a cellphone and took an urgent call from a senior Vatican official.
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By Philip Pullella VATICAN CITY, Oct 3 (Reuters) - Pope Francis, who has often said people should limit their use of cellphones and give preference to personal communication, granted a private audience on Monday to Apple Chief Executive Tim Cook. Cook, head of the $2.4 trillion company whose iPhone has revolutionised personal communication, was on the pope's daily audience list. (Reporting by Philip Pullella Editing by Bernadette Baum) ((philip.pullella@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 Philip Pullella VATICAN CITY, Oct 3 (Reuters) - Pope Francis, who has often said people should limit their use of cellphones and give preference to personal communication, granted a private audience on Monday to Apple Chief Executive Tim Cook. Last year, he interrupted his general audience when an aide passed him a cellphone and took an urgent call from a senior Vatican official. But he has also regularly warned people against becoming slaves to cellphones and other forms of technology.
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By Philip Pullella VATICAN CITY, Oct 3 (Reuters) - Pope Francis, who has often said people should limit their use of cellphones and give preference to personal communication, granted a private audience on Monday to Apple Chief Executive Tim Cook. Cook, head of the $2.4 trillion company whose iPhone has revolutionised personal communication, was on the pope's daily audience list. "When you become a slave to your mobile phone, you lose your freedom."
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19062.0
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2022-10-03 00:00:00 UTC
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Why Qualcomm Stock Surged Higher Today
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AAPL
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https://www.nasdaq.com/articles/why-qualcomm-stock-surged-higher-today
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nan
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nan
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What happened
Even by the standards of Monday's robust bull market, Qualcomm (NASDAQ: QCOM) stock did well. The big connectivity tech specialist's stock bounced nearly 4% higher, edging past the S&P 500's 2.6% gain on the day. A win at the very top of the U.S. legal pyramid was a major reason for the pop.
So what
On Monday, the U.S. Supreme Court refused to hear Apple's (NASDAQ: AAPL) appeal of a lower court ruling on the company's patent infringement dispute with Qualcomm. As Apple has no higher court to turn to, the case is effectively dead in the water.
The legal fight between the two tech companies dates from a 2017 lawsuit filed by Qualcomm. The suit -- filed in a federal court in California, the home of both businesses -- alleged that Apple infringed a set of Qualcomm patents with its iPhones, iPads, and Apple Watches.
Although the companies settled much of their dispute in a comprehensive agreement signed in 2019, Apple continued to challenge the validity of two of its counterpart's patents. In 2021, this was struck down by a federal appeals court; Apple subsequently attempted to revive the case at the Supreme Court.
Now what
Neither Qualcomm nor Apple has commented officially on the Supreme Court's action, and they're not likely to. Qualcomm chips continue to be packed into Apple devices, so the two companies have a vested interest in not highlighting their legal spats.
Regardless, this is a clear win for Qualcomm, and gives the busy specialty tech company one less distraction from its business -- which remains robust, thanks in no small part to Apple.
10 stocks we like better than Qualcomm
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Qualcomm 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 30, 2022
Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple and Qualcomm. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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So what On Monday, the U.S. Supreme Court refused to hear Apple's (NASDAQ: AAPL) appeal of a lower court ruling on the company's patent infringement dispute with Qualcomm. The big connectivity tech specialist's stock bounced nearly 4% higher, edging past the S&P 500's 2.6% gain on the day. Although the companies settled much of their dispute in a comprehensive agreement signed in 2019, Apple continued to challenge the validity of two of its counterpart's patents.
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So what On Monday, the U.S. Supreme Court refused to hear Apple's (NASDAQ: AAPL) appeal of a lower court ruling on the company's patent infringement dispute with Qualcomm. What happened Even by the standards of Monday's robust bull market, Qualcomm (NASDAQ: QCOM) stock did well. In 2021, this was struck down by a federal appeals court; Apple subsequently attempted to revive the case at the Supreme Court.
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So what On Monday, the U.S. Supreme Court refused to hear Apple's (NASDAQ: AAPL) appeal of a lower court ruling on the company's patent infringement dispute with Qualcomm. The suit -- filed in a federal court in California, the home of both businesses -- alleged that Apple infringed a set of Qualcomm patents with its iPhones, iPads, and Apple Watches. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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So what On Monday, the U.S. Supreme Court refused to hear Apple's (NASDAQ: AAPL) appeal of a lower court ruling on the company's patent infringement dispute with Qualcomm. In 2021, this was struck down by a federal appeals court; Apple subsequently attempted to revive the case at the Supreme Court. That's right -- they think these 10 stocks are even better buys.
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19063.0
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2022-10-03 00:00:00 UTC
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US STOCKS-Wall Street closes with sharp gains as final quarter begins
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-closes-with-sharp-gains-as-final-quarter-begins-0
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nan
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nan
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By Echo Wang
Oct 3 (Reuters) - Wall Street's three major indexes rallied to close over 2% on Monday as U.S. Treasury yields tumbled on weaker-than-expected manufacturing data, increasing the appeal of stocks at the start of the year's final quarter.
The U.S. stock market has suffered three quarterly declines in a row in a tumultuous year marked by interest rate hikes to tame historically high inflation, and concerns about a slowing economy.
"The U.S. yield markets (are) pulling back - that's been a positive ... and that connotes a more risk-on environment," said Art Hogan, chief market strategist at B. Riley Wealth in Boston.
Further supporting rate-sensitive growth stocks, the benchmark U.S. 10-year Treasury yield fell after British Prime Minister Liz Truss was forced to reverse course on a tax cut for the highest rate. US/
All 11 major S&P 500 .SPX sectors advanced to positive territory, with energy .SPNY being the biggest gainer.
Oil majors Exxon Mobil Corp XOM.N and Chevron Corp CVX.Nrose more than 5%, tracking a jump in crude prices as sources said the Organization of the Petroleum Exporting Countries and its allies are considering their biggest output cut since the start of the COVID-19 pandemic. O/R
Megacap growth and technology companies such as Apple Inc AAPL.O and Microsoft CorpMSFT.Orose over 3% respectively, while banks <.SPXBK> advanced 3%.
Data showed manufacturing activity increased at its slowest pace in nearly 2-1/2 years in September as new orders contracted, likely as rising interest rates to tame inflation cooled demand for goods.
The Institute for Supply Management said its manufacturing PMI dropped to 50.9 this month, missing estimates but still above 50, indicating growth.
"The economic data stream actually came in worse than expected. In a very counterintuitive fashion that likely represents good news for equity markets," said Hogan.
"(While) good economic data, strong readings had been a catalyst for selling, this is the first time we've actually seen some negative news be a catalyst."
All three major indexes ended a volatile third quarter lower on Friday on growing fears that the Federal Reserve's aggressive monetary policy will tip the economy into recession. .N
The Dow Jones Industrial Average .DJI rose 765.38 points, or 2.66%, to 29,490.89; the S&P 500 .SPX gained 92.81 points, or 2.59%, at 3,678.43; and the Nasdaq Composite .IXIC added 239.82 points, or 2.27%, at 10,815.44.
Volume on U.S. exchanges was 11.61 billion shares, compared with the 11.54 billion average for the full session over the last 20 trading days.
Tesla Inc TSLA.O fell 8.6% after it sold fewer-than-expected vehicles in the third quarter as deliveries lagged way behind production due to logistic hurdles. Peers Lucid Group LCID.O gained 0.9% and Rivian Automotive RIVN.Ofell 3.1%.
Major automakers are expected to report modest declines in U.S. new vehicle sales, but analysts and investors worry that a darkening economic picture, not inventory shortages, will lead to weaker car sales.
Citigroup and Credit Suisse became the latest brokerages to lower 2022 year-end targets for the S&P 500, as U.S. equity markets bear the heat of aggressive central bank actions to tamp down inflation.
Credit Suisse also set a 2023 year-end price target for the benchmark index at 4,050 points, adding that 2023 would be a "year of weak, non-recessionary growth and falling inflation."
Advancing issues outnumbered decliners on the NYSE by a 5.04-to-1 ratio; on Nasdaq, a 2.70-to-1 ratio favored advancers.
The S&P 500 posted one new 52-week high and 23 new lows; the Nasdaq Composite recorded 58 new highs and 282 new lows.
(Reporting by Echo Wang in New York; Additional reporting by Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva, Arun Koyyur and Richard Chang)
((E.Wang@thomsonreuters.com; +1 9172873971; Reuters Messaging: E.Wang@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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O/R Megacap growth and technology companies such as Apple Inc AAPL.O and Microsoft CorpMSFT.Orose over 3% respectively, while banks <.SPXBK> advanced 3%. By Echo Wang Oct 3 (Reuters) - Wall Street's three major indexes rallied to close over 2% on Monday as U.S. Treasury yields tumbled on weaker-than-expected manufacturing data, increasing the appeal of stocks at the start of the year's final quarter. The U.S. stock market has suffered three quarterly declines in a row in a tumultuous year marked by interest rate hikes to tame historically high inflation, and concerns about a slowing economy.
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O/R Megacap growth and technology companies such as Apple Inc AAPL.O and Microsoft CorpMSFT.Orose over 3% respectively, while banks <.SPXBK> advanced 3%. By Echo Wang Oct 3 (Reuters) - Wall Street's three major indexes rallied to close over 2% on Monday as U.S. Treasury yields tumbled on weaker-than-expected manufacturing data, increasing the appeal of stocks at the start of the year's final quarter. Further supporting rate-sensitive growth stocks, the benchmark U.S. 10-year Treasury yield fell after British Prime Minister Liz Truss was forced to reverse course on a tax cut for the highest rate.
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O/R Megacap growth and technology companies such as Apple Inc AAPL.O and Microsoft CorpMSFT.Orose over 3% respectively, while banks <.SPXBK> advanced 3%. By Echo Wang Oct 3 (Reuters) - Wall Street's three major indexes rallied to close over 2% on Monday as U.S. Treasury yields tumbled on weaker-than-expected manufacturing data, increasing the appeal of stocks at the start of the year's final quarter. The U.S. stock market has suffered three quarterly declines in a row in a tumultuous year marked by interest rate hikes to tame historically high inflation, and concerns about a slowing economy.
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O/R Megacap growth and technology companies such as Apple Inc AAPL.O and Microsoft CorpMSFT.Orose over 3% respectively, while banks <.SPXBK> advanced 3%. The U.S. stock market has suffered three quarterly declines in a row in a tumultuous year marked by interest rate hikes to tame historically high inflation, and concerns about a slowing economy. In a very counterintuitive fashion that likely represents good news for equity markets," said Hogan.
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19064.0
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2022-10-03 00:00:00 UTC
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US STOCKS-Wall Street closes with sharp gains as final quarter begins
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-closes-with-sharp-gains-as-final-quarter-begins
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nan
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nan
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By Echo Wang
Oct 3 (Reuters) - Wall Street stocks ended with sharp gains on Monday at the start of the final quarter of a tumultuous year with interest rate hikes amid historically hot inflation and fears of slowing economic growth.
All 11 major S&P 500 .SPX sectors advanced to positive territory, with energy .SPNY being the biggest gainer.
Data showed manufacturing activity increased at its slowest pace in nearly 2-1/2 years in September as new orders contracted, likely as rising interest rates to tame inflation cooled demand for goods.
The Institute for Supply Management said its manufacturing PMI dropped to 50.9 this month, missing estimates but still above 50, indicating growth.
"The economic data stream actually came in worse than expected. In a very counterintuitive fashion that likely represents good news for equity markets," said Art Hogan, chief market strategist at B. Riley Wealth in Boston.
"(While) good economic data, strong readings had been a catalyst for selling, this is the first time we've actually seen some negative news be a catalyst."
Further supporting rate-sensitive growth stocks, the benchmark U.S. 10-year Treasury yield fell after British Prime Minister Liz Truss was forced to reverse course on a tax cut for the highest rate. US/
"The U.S. yield markets (are) pulling back - that's been a positive ... and that connotes a more risk-on environment," said Hogan.
All three major indexes ended a volatile third quarter lower on Friday on growing fears that the Federal Reserve's aggressive monetary policy will tip the economy into recession. .N
According to preliminary data, the S&P 500 .SPX gained 92.81 points, or 2.54%, to end at 3,678.43 points, while the Nasdaq Composite .IXIC gained 235.42 points, or 2.23%, to 10,811.04. The Dow Jones Industrial Average .DJI rose 764.52 points, or 2.63%, to 29,480.41.
Citigroup and Credit Suisse became the latest brokerages to lower their 2022 year-end targets for the S&P 500, as U.S. equity markets bear the heat of aggressive central bank actions to tamp down inflation.
Credit Suisse also set a 2023 year-end price target for the benchmark index at 4,050 points, adding that 2023 would be a "year of weak, non-recessionary growth and falling inflation."
(Reporting by Echo Wang in New York; Additional reporting by Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva, Arun Koyyur and Richard Chang)
((E.Wang@thomsonreuters.com; +1 9172873971; Reuters Messaging: E.Wang@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.
|
By Echo Wang Oct 3 (Reuters) - Wall Street stocks ended with sharp gains on Monday at the start of the final quarter of a tumultuous year with interest rate hikes amid historically hot inflation and fears of slowing economic growth. Data showed manufacturing activity increased at its slowest pace in nearly 2-1/2 years in September as new orders contracted, likely as rising interest rates to tame inflation cooled demand for goods. Further supporting rate-sensitive growth stocks, the benchmark U.S. 10-year Treasury yield fell after British Prime Minister Liz Truss was forced to reverse course on a tax cut for the highest rate.
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In a very counterintuitive fashion that likely represents good news for equity markets," said Art Hogan, chief market strategist at B. Riley Wealth in Boston. .N According to preliminary data, the S&P 500 .SPX gained 92.81 points, or 2.54%, to end at 3,678.43 points, while the Nasdaq Composite .IXIC gained 235.42 points, or 2.23%, to 10,811.04. Credit Suisse also set a 2023 year-end price target for the benchmark index at 4,050 points, adding that 2023 would be a "year of weak, non-recessionary growth and falling inflation."
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By Echo Wang Oct 3 (Reuters) - Wall Street stocks ended with sharp gains on Monday at the start of the final quarter of a tumultuous year with interest rate hikes amid historically hot inflation and fears of slowing economic growth. .N According to preliminary data, the S&P 500 .SPX gained 92.81 points, or 2.54%, to end at 3,678.43 points, while the Nasdaq Composite .IXIC gained 235.42 points, or 2.23%, to 10,811.04. Credit Suisse also set a 2023 year-end price target for the benchmark index at 4,050 points, adding that 2023 would be a "year of weak, non-recessionary growth and falling inflation."
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By Echo Wang Oct 3 (Reuters) - Wall Street stocks ended with sharp gains on Monday at the start of the final quarter of a tumultuous year with interest rate hikes amid historically hot inflation and fears of slowing economic growth. In a very counterintuitive fashion that likely represents good news for equity markets," said Art Hogan, chief market strategist at B. Riley Wealth in Boston. .N According to preliminary data, the S&P 500 .SPX gained 92.81 points, or 2.54%, to end at 3,678.43 points, while the Nasdaq Composite .IXIC gained 235.42 points, or 2.23%, to 10,811.04.
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19065.0
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2022-10-03 00:00:00 UTC
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US STOCKS-Wall Street surges as final quarter begins
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-surges-as-final-quarter-begins
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nan
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nan
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By Echo Wang
Oct 3 (Reuters) - Wall Street's three major indexes rallied over 2.5% on Monday to start the final quarter of a tumultuous year in which investors fretted about aggressive interest rate hikes amid historically hot inflation and fears of slowing economic growth.
All 11 major S&P 500 .SPX sectors are in positive territory, with energy .SPNYon track for its best day in more than three months.
Oil majors Exxon Mobil Corp XOM.N and Chevron Corp CVX.Nrose more than 5.5%, tracking a jump in crude prices as sources said the Organization of the Petroleum Exporting Countries and its allies are considering their biggest output cut since the start of the COVID-19 pandemic. O/R
Megacap growth and technology companies such as Apple Inc AAPL.O and Microsoft CorpMSFT.Oeach roseabout 3.5%, while banks <.SPXBK> advanced 3.1%.
Data showed manufacturing activity increased at its slowest pace in nearly 2-1/2 years in September as new orders contracted, likely as rising interest rates to tame inflation cooled demand for goods.
The Institute for Supply Management said its manufacturing PMI dropped to 50.9 this month, missing estimates but still above 50, indicating growth.
"The economic data stream actually came in worse than expected. In a very counterintuitive fashion that likely represents good news for equity markets," said Art Hogan, chief market strategist at B. Riley Wealth in Boston.
"(While) good economic data, strong readings had been a catalyst for selling, this is the first time we've actually seen some negative news be a catalyst."
Further supporting rate-sensitive growth stocks, the benchmark U.S. 10-year Treasury yield fell after British Prime Minister Liz Truss was forced to reverse course on a tax cut for the highest rate. US/
"The U.S. yield markets (are) pulling back - that's been a positive ... and that connotes a more risk-on environment," said Hogan.
All three major indexes ended a volatile third quarter lower on Friday on growing fears that the Federal Reserve's aggressive monetary policy will tip the economy into recession. .N
Tesla Inc TSLA.O fell 7.5% after it sold fewer-than-expected vehicles in the third quarter as deliveries lagged way behind production due to logistic hurdles. Peers Lucid Group LCID.O gained 1.4% and Rivian Automotive RIVN.Ofell 2.5%.
Major automakers are expected to report modest declines in U.S. new vehicle sales, but analysts and investors worry that a darkening economic picture, not inventory shortages, will lead to weaker car sales.
Citigroup and Credit Suisse became the latest brokerages to lower their 2022 year-end targets for the S&P 500, as U.S. equity markets bear the heat of aggressive central bank actions to tamp down inflation.
Credit Suisse also set a 2023 year-end price target for the benchmark index at 4,050 points, adding that 2023 would be a "year of weak, non-recessionary growth and falling inflation."
Advancing issues outnumbered declining ones on the NYSE by a 6.07-to-1 ratio; on Nasdaq, a 2.87-to-1 ratio favored advancers.
The S&P 500 posted 1 new 52-week highs and 23 new lows; the Nasdaq Composite recorded 49 new highs and 268 new lows.
(Reporting by Echo Wang in New York; Additional reporting by Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva, Arun Koyyur and Richard Chang)
((E.Wang@thomsonreuters.com; +1 9172873971; Reuters Messaging: E.Wang@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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O/R Megacap growth and technology companies such as Apple Inc AAPL.O and Microsoft CorpMSFT.Oeach roseabout 3.5%, while banks <.SPXBK> advanced 3.1%. By Echo Wang Oct 3 (Reuters) - Wall Street's three major indexes rallied over 2.5% on Monday to start the final quarter of a tumultuous year in which investors fretted about aggressive interest rate hikes amid historically hot inflation and fears of slowing economic growth. Data showed manufacturing activity increased at its slowest pace in nearly 2-1/2 years in September as new orders contracted, likely as rising interest rates to tame inflation cooled demand for goods.
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O/R Megacap growth and technology companies such as Apple Inc AAPL.O and Microsoft CorpMSFT.Oeach roseabout 3.5%, while banks <.SPXBK> advanced 3.1%. By Echo Wang Oct 3 (Reuters) - Wall Street's three major indexes rallied over 2.5% on Monday to start the final quarter of a tumultuous year in which investors fretted about aggressive interest rate hikes amid historically hot inflation and fears of slowing economic growth. In a very counterintuitive fashion that likely represents good news for equity markets," said Art Hogan, chief market strategist at B. Riley Wealth in Boston.
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O/R Megacap growth and technology companies such as Apple Inc AAPL.O and Microsoft CorpMSFT.Oeach roseabout 3.5%, while banks <.SPXBK> advanced 3.1%. By Echo Wang Oct 3 (Reuters) - Wall Street's three major indexes rallied over 2.5% on Monday to start the final quarter of a tumultuous year in which investors fretted about aggressive interest rate hikes amid historically hot inflation and fears of slowing economic growth. Major automakers are expected to report modest declines in U.S. new vehicle sales, but analysts and investors worry that a darkening economic picture, not inventory shortages, will lead to weaker car sales.
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O/R Megacap growth and technology companies such as Apple Inc AAPL.O and Microsoft CorpMSFT.Oeach roseabout 3.5%, while banks <.SPXBK> advanced 3.1%. By Echo Wang Oct 3 (Reuters) - Wall Street's three major indexes rallied over 2.5% on Monday to start the final quarter of a tumultuous year in which investors fretted about aggressive interest rate hikes amid historically hot inflation and fears of slowing economic growth. "The economic data stream actually came in worse than expected.
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19066.0
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2022-10-03 00:00:00 UTC
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US STOCKS-Wall Street rallied to enter final quarter
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-rallied-to-enter-final-quarter
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nan
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nan
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By Echo Wang
Oct 3 (Reuters) - Wall Street's three major indexes rallied over 2.5% on Monday to start the final quarter of a tumultuous year in which investors fretted about aggressive interest rate hikes amid historically hot inflation and fears of slowing economic growth.
All 11 major S&P 500 .SPX sectors are in positive territory, with energy .SPNYon track for its best day in more than three months.
Oil majors Exxon Mobil Corp XOM.N and Chevron Corp CVX.Nrose more than 5%, tracking a jump in crude prices as sources said the Organization of the Petroleum Exporting Countries and its allies are considering their biggest output cut since the start of the COVID-19 pandemic. O/R
Megacap growth and technology companies such as Apple Inc AAPL.O and Microsoft CorpMSFT.Oeach roseabout 3.5%, while banks <.SPXBK> advanced 3.2%.
Data showed manufacturing activity increased at its slowest pace in nearly 2-1/2 years in September as new orders contracted, likely as rising interest rates to tame inflation cooled demand for goods.
The Institute for Supply Management said its manufacturing PMI dropped to 50.9 this month, missing estimates but still above 50, indicating growth.
"The economic data stream actually came in worse than expected. In a very counterintuitive fashion that likely represents good news for equity markets," said Art Hogan, chief market strategist at B. Riley Wealth in Boston.
"(While) good economic data, strong readings had been a catalyst for selling, this is the first time we've actually seen some negative news be a catalyst."
Further supporting rate-sensitive growth stocks, the benchmark U.S. 10-year Treasury yield fell after British Prime Minister Liz Truss was forced to reverse course on a tax cut for the highest rate. US/
"The U.S. yield markets (are) pulling back - that's been a positive ... and that connotes a more risk-on environment," said Hogan.
All three major indexes ended a volatile third quarter lower on Friday on growing fears that the Federal Reserve's aggressive monetary policy will tip the economy into recession. .N
Tesla Inc TSLA.O fell 6.9% after it sold fewer-than-expected vehicles in the third quarter as deliveries lagged way behind production due to logistic hurdles. Peers Lucid Group LCID.O gained 1.3% and Rivian Automotive RIVN.Ofell 2.3%.
Major automakers are expected to report modest declines in U.S. new vehicle sales, but analysts and investors worry that a darkening economic picture, not inventory shortages, will lead to weaker car sales.
Citigroup and Credit Suisse became the latest brokerages to lower their 2022 year-end targets for the S&P 500, as U.S. equity markets bear the heat of aggressive central bank actions to tamp down inflation.
Credit Suisse also set a 2023 year-end price target for the benchmark index at 4,050 points, adding that 2023 would be a "year of weak, non-recessionary growth and falling inflation."
Advancing issues outnumbered decliners on the NYSE by a 6.29-to-1 ratio; on Nasdaq, a 2.87-to-1 ratio favored advancers.
The S&P 500 posted one new 52-week high and 23 new lows; the Nasdaq Composite recorded 46 new highs and 267 new lows.
(Reporting by Echo Wang in New York; Additional reporting by Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva, Arun Koyyur and Richard Chang)
((E.Wang@thomsonreuters.com; +1 9172873971; Reuters Messaging: E.Wang@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.
|
O/R Megacap growth and technology companies such as Apple Inc AAPL.O and Microsoft CorpMSFT.Oeach roseabout 3.5%, while banks <.SPXBK> advanced 3.2%. By Echo Wang Oct 3 (Reuters) - Wall Street's three major indexes rallied over 2.5% on Monday to start the final quarter of a tumultuous year in which investors fretted about aggressive interest rate hikes amid historically hot inflation and fears of slowing economic growth. Data showed manufacturing activity increased at its slowest pace in nearly 2-1/2 years in September as new orders contracted, likely as rising interest rates to tame inflation cooled demand for goods.
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O/R Megacap growth and technology companies such as Apple Inc AAPL.O and Microsoft CorpMSFT.Oeach roseabout 3.5%, while banks <.SPXBK> advanced 3.2%. By Echo Wang Oct 3 (Reuters) - Wall Street's three major indexes rallied over 2.5% on Monday to start the final quarter of a tumultuous year in which investors fretted about aggressive interest rate hikes amid historically hot inflation and fears of slowing economic growth. In a very counterintuitive fashion that likely represents good news for equity markets," said Art Hogan, chief market strategist at B. Riley Wealth in Boston.
|
O/R Megacap growth and technology companies such as Apple Inc AAPL.O and Microsoft CorpMSFT.Oeach roseabout 3.5%, while banks <.SPXBK> advanced 3.2%. By Echo Wang Oct 3 (Reuters) - Wall Street's three major indexes rallied over 2.5% on Monday to start the final quarter of a tumultuous year in which investors fretted about aggressive interest rate hikes amid historically hot inflation and fears of slowing economic growth. Major automakers are expected to report modest declines in U.S. new vehicle sales, but analysts and investors worry that a darkening economic picture, not inventory shortages, will lead to weaker car sales.
|
O/R Megacap growth and technology companies such as Apple Inc AAPL.O and Microsoft CorpMSFT.Oeach roseabout 3.5%, while banks <.SPXBK> advanced 3.2%. By Echo Wang Oct 3 (Reuters) - Wall Street's three major indexes rallied over 2.5% on Monday to start the final quarter of a tumultuous year in which investors fretted about aggressive interest rate hikes amid historically hot inflation and fears of slowing economic growth. "The economic data stream actually came in worse than expected.
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19067.0
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2022-10-03 00:00:00 UTC
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Amazon (AMZN) Boosts Smart Speaker Portfolio With Echo Devices
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AAPL
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https://www.nasdaq.com/articles/amazon-amzn-boosts-smart-speaker-portfolio-with-echo-devices
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nan
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nan
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Amazon AMZN is working on bolstering its presence in the promising smart speaker market, making daily life easier by handling small but inevitable tasks smartly and efficiently on the back of AI-powered virtual assistants.
The latest launches of all-new Echo Dot, Echo Dot, Echo Dot Kids in new Owl and Dragon designs, and Echo Auto are the testaments to the aforesaid statement.
The company upgraded Echo Studio with new spatial audio processing technology and frequency range extension feature.
Amazon expands its Echo device family on the heels of its latest move. The move is likely to add strength to its device strategy, which has been contributing well to its top-line growth.
All the new Echo devices hold the Climate Pledge Friendly badge, which bodes well for the company’s deepening focus on achieving its carbon neutrality goals.
More on the New Echo Devices
The all-new Echo Dot and Echo Dot with Clock are equipped with redesigned audio architecture, which delivers clear vocals and high bass. These devices comprise new sensors to deliver contextual Alexa experiences to users.
Echo Dot and Echo Dot with Clock offer quick responses for tap gestures, ultrasound motion detection, and on-device execution for common requests to Alexa on the back of the AZ2 Neural Edge processor. These devices feature eero Built-in, offering greater coverage at home.
The all-new Echo Auto comprises five microphones, which can hear users’ requests even in noisy situations. It also comes with roadside assistance hands-free feature that helps drivers or vehicle owners in case of any technical vehicle-related problem.
Coming to Echo Dot Kids, the new Owl and Dragon designs, are designed to make Alexa fun for kids. The device comes with a one-year subscription to Amazon Kids+ and easy-to-use parental controls.
Growing Market Prospects
The latest move is likely to expand Amazon’s footprint in the booming smart speaker market.
The company’s expanding smart speakers, along with smart display offerings, are expected to continue bolstering its prospects in the smart home space.
Apart from the company’s wide range of smart speakers, it offers powerful smart displays with the Echo Show series. AMZN’s recent launch, Echo Show 15, is compatible with Alexa and can be paired with other Echo devices to enjoy higher-quality audio.
Given the above-mentioned factors, we believe that Amazon is well-poised to capitalize on the growth prospects in the smart speaker and smart display markets.
According to a report from Fortune Business Insights, the global smart speaker market is anticipated to reach $34.34 billion by 2028, witnessing a CAGR of 21% between 2021 and 2028.
Per a report from Allied Market Research, the smart display market is expected to hit $18.25 billion by 2028, witnessing a CAGR of 21.6% between 2021 and 2028.
Given the upbeat scenario, not only Amazon but also companies like Alphabet GOOGL, Lenovo LNVGY and Apple AAPL are making strong efforts to capitalize on growth prospects of this market.
Alphabet’s Google continues to put strong efforts toward enhancing its smart speaker and smart display offerings.
Google recently added a Bluetooth menu in the settings option of Nest Hub Max. Nest Hub and other Google Assistant smart displays recently started featuring lyrics on the Spotify app, while playing songs on smart devices. The search giant also introduced an Air Quality feature in Google Nest Hub that allows users to know the quality of air in the area.
Meanwhile, Lenovo’s smart display provides an enhanced visual experience to users. It is enabled with Google Assistant and designed for smart home applications. The underlined smart display runs on a simplified version of Google's Android mobile OS, Android Things.
Apple remains a notable player in the smart speaker space on the back of its advanced voice assistant – Siri. The iPhone maker has gained popularity for its HomePod mini. Its loyal customer base and brand loyalty are major positives.
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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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Given the upbeat scenario, not only Amazon but also companies like Alphabet GOOGL, Lenovo LNVGY and Apple AAPL are making strong efforts to capitalize on growth prospects of this market. Apple Inc. (AAPL): Free Stock Analysis Report All the new Echo devices hold the Climate Pledge Friendly badge, which bodes well for the company’s deepening focus on achieving its carbon neutrality goals.
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Given the upbeat scenario, not only Amazon but also companies like Alphabet GOOGL, Lenovo LNVGY and Apple AAPL are making strong efforts to capitalize on growth prospects of this market. Apple Inc. (AAPL): Free Stock Analysis Report The latest launches of all-new Echo Dot, Echo Dot, Echo Dot Kids in new Owl and Dragon designs, and Echo Auto are the testaments to the aforesaid statement.
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Given the upbeat scenario, not only Amazon but also companies like Alphabet GOOGL, Lenovo LNVGY and Apple AAPL are making strong efforts to capitalize on growth prospects of this market. Apple Inc. (AAPL): Free Stock Analysis Report The latest launches of all-new Echo Dot, Echo Dot, Echo Dot Kids in new Owl and Dragon designs, and Echo Auto are the testaments to the aforesaid statement.
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Given the upbeat scenario, not only Amazon but also companies like Alphabet GOOGL, Lenovo LNVGY and Apple AAPL are making strong efforts to capitalize on growth prospects of this market. Apple Inc. (AAPL): Free Stock Analysis Report Amazon expands its Echo device family on the heels of its latest move.
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19068.0
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2022-10-03 00:00:00 UTC
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US STOCKS-S&P 500, Dow jump over 2% to kick-start fourth quarter
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-dow-jump-over-2-to-kick-start-fourth-quarter
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nan
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nan
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By Ankika Biswas and Bansari Mayur Kamdar
Oct 3 (Reuters) - U.S. stock indexes rose on Monday at the start of the final quarter of a tumultuous year in which investors fretted about aggressive interest rate hikes against the backdrop of historically hot inflation and fears of slowing economic growth.
Ten of the 11 major S&P 500 sectors advanced in mid-day trading, with the energy sector .SPNY heading for its best day in more than three months.
Oil majors Exxon Mobil XOM.N and Chevron Corp CVX.N rose more than 4%, tracking a jump in crude prices as sources said the Organization of the Petroleum Exporting Countries and its allies are considering their biggest output cut since the start of the COVID-19 pandemic. O/R
Megacap growth and technology companies such as Apple AAPL.O and Microsoft MSFT.O advanced 2% each, while banks .SPXBK gained 2.8%.
Data showed manufacturing activity grew at its slowest pace in nearly 2-1/2 years in September as new orders contracted, likely as rising interest rates to tame inflation cooled demand for goods.
The Institute for Supply Management said its manufacturing PMI dropped to 50.9 this month, missing estimates but still above 50 indicating an expansion in manufacturing.
"U.S. stocks are driving higher due to the weaker-than-expected manufacturing data as traders are taking the view that bad news for the economy is good news for the stock market," said David Madden, market analyst at Equiti Capital.
"In some pockets of the markets, there is speculation the Fed might 'pivot', meaning the bank might look to hike interest rates at a slower pace."
Further supporting rate-sensitive growth stocks, the benchmark U.S. 10-year Treasury yield fell after British Prime Minister Liz Truss was forced to reverse course on a tax cut for the highest rate. US/
All three major indexes ended a volatile third quarter lower on Friday on growing fears that the Federal Reserve's aggressive monetary policy will tip the economy into recession. .N
Tesla Inc TSLA.O fell 8.4% after it sold fewer-than-expected vehicles in the third quarter as deliveries lagged way behind production due to logistic hurdles. Peers Lucid Group LCID.O slid 2% and Rivian Automotive RIVN.O 4%.
Major automakers are expected to report modest declines in U.S. new vehicle sales, but analysts and investors are concerned that a darkening economic picture, not inventory shortages, will lead to a drop in future car sales.
Citigroup and Credit Suisse became the latest brokerages to bring down their 2022 year-end targets for the S&P 500 index, as U.S. equity markets bear the heat of aggressive central bank actions to tamp down inflation.
Credit Suisse also set a 2023 year-end price target for the benchmark index at 4,050 points, adding that 2023 would be a "year of weak, non-recessionary growth and falling inflation."
Advancing issues outnumbered decliners by a 5.48-to-1 ratio on the NYSE and a 2.24-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week highs and 23 new lows, while the Nasdaq recorded 45 new highs and 225 new lows.
(Reporting by Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva and Arun Koyyur)
((Ankika.Biswas@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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O/R Megacap growth and technology companies such as Apple AAPL.O and Microsoft MSFT.O advanced 2% each, while banks .SPXBK gained 2.8%. By Ankika Biswas and Bansari Mayur Kamdar Oct 3 (Reuters) - U.S. stock indexes rose on Monday at the start of the final quarter of a tumultuous year in which investors fretted about aggressive interest rate hikes against the backdrop of historically hot inflation and fears of slowing economic growth. Oil majors Exxon Mobil XOM.N and Chevron Corp CVX.N rose more than 4%, tracking a jump in crude prices as sources said the Organization of the Petroleum Exporting Countries and its allies are considering their biggest output cut since the start of the COVID-19 pandemic.
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O/R Megacap growth and technology companies such as Apple AAPL.O and Microsoft MSFT.O advanced 2% each, while banks .SPXBK gained 2.8%. By Ankika Biswas and Bansari Mayur Kamdar Oct 3 (Reuters) - U.S. stock indexes rose on Monday at the start of the final quarter of a tumultuous year in which investors fretted about aggressive interest rate hikes against the backdrop of historically hot inflation and fears of slowing economic growth. "U.S. stocks are driving higher due to the weaker-than-expected manufacturing data as traders are taking the view that bad news for the economy is good news for the stock market," said David Madden, market analyst at Equiti Capital.
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O/R Megacap growth and technology companies such as Apple AAPL.O and Microsoft MSFT.O advanced 2% each, while banks .SPXBK gained 2.8%. By Ankika Biswas and Bansari Mayur Kamdar Oct 3 (Reuters) - U.S. stock indexes rose on Monday at the start of the final quarter of a tumultuous year in which investors fretted about aggressive interest rate hikes against the backdrop of historically hot inflation and fears of slowing economic growth. "U.S. stocks are driving higher due to the weaker-than-expected manufacturing data as traders are taking the view that bad news for the economy is good news for the stock market," said David Madden, market analyst at Equiti Capital.
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O/R Megacap growth and technology companies such as Apple AAPL.O and Microsoft MSFT.O advanced 2% each, while banks .SPXBK gained 2.8%. By Ankika Biswas and Bansari Mayur Kamdar Oct 3 (Reuters) - U.S. stock indexes rose on Monday at the start of the final quarter of a tumultuous year in which investors fretted about aggressive interest rate hikes against the backdrop of historically hot inflation and fears of slowing economic growth. Ten of the 11 major S&P 500 sectors advanced in mid-day trading, with the energy sector .SPNY heading for its best day in more than three months.
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19069.0
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2022-10-03 00:00:00 UTC
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Monday's ETF with Unusual Volume: FTHI
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AAPL
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https://www.nasdaq.com/articles/mondays-etf-with-unusual-volume%3A-fthi
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nan
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nan
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The First Trust BuyWrite Income ETF is seeing unusually high volume in afternoon trading Monday, with over 285,000 shares traded versus three month average volume of about 57,000. Shares of FTHI were up about 1.7% on the day.
Components of that ETF with the highest volume on Monday were Tesla, trading off about 8.6% with over 50.8 million shares changing hands so far this session, and Apple, up about 2.1% on volume of over 50.5 million shares. Murphy Oil is the component faring the best Monday, up by about 9.9% on the day.
VIDEO: Monday's ETF with Unusual Volume: FTHI
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 First Trust BuyWrite Income ETF is seeing unusually high volume in afternoon trading Monday, with over 285,000 shares traded versus three month average volume of about 57,000. Components of that ETF with the highest volume on Monday were Tesla, trading off about 8.6% with over 50.8 million shares changing hands so far this session, and Apple, up about 2.1% on volume of over 50.5 million shares. VIDEO: Monday's ETF with Unusual Volume: FTHI 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 First Trust BuyWrite Income ETF is seeing unusually high volume in afternoon trading Monday, with over 285,000 shares traded versus three month average volume of about 57,000. Components of that ETF with the highest volume on Monday were Tesla, trading off about 8.6% with over 50.8 million shares changing hands so far this session, and Apple, up about 2.1% on volume of over 50.5 million shares. VIDEO: Monday's ETF with Unusual Volume: FTHI 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 First Trust BuyWrite Income ETF is seeing unusually high volume in afternoon trading Monday, with over 285,000 shares traded versus three month average volume of about 57,000. Components of that ETF with the highest volume on Monday were Tesla, trading off about 8.6% with over 50.8 million shares changing hands so far this session, and Apple, up about 2.1% on volume of over 50.5 million shares. VIDEO: Monday's ETF with Unusual Volume: FTHI 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 First Trust BuyWrite Income ETF is seeing unusually high volume in afternoon trading Monday, with over 285,000 shares traded versus three month average volume of about 57,000. Shares of FTHI were up about 1.7% on the day. Components of that ETF with the highest volume on Monday were Tesla, trading off about 8.6% with over 50.8 million shares changing hands so far this session, and Apple, up about 2.1% on volume of over 50.5 million shares.
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19070.0
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2022-10-03 00:00:00 UTC
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Apple loses second bid to challenge Qualcomm patents at U.S. Supreme Court
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AAPL
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https://www.nasdaq.com/articles/apple-loses-second-bid-to-challenge-qualcomm-patents-at-u.s.-supreme-court
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nan
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nan
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By Blake Brittain
WASHINGTON, Oct 3 - The U.S. Supreme Court on Monday again declined to hear Apple Inc's AAPL.O bid to revive an effort to cancel three Qualcomm Inc QCOM.O smartphone patents despite the settlement of the underlying dispute between the two tech giants.
The justices left in place a lower court's decision against Apple after similarly turning away in June the company's appeal of a lower court ruling in a closely related case challenging two other Qualcomm patents.
Qualcomm sued Apple in San Diego federal court in 2017, arguing that its iPhones, iPads and Apple Watches infringed a variety of mobile-technology patents. That case was part of a broader global dispute between the tech giants.
Apple challenged the validity of the patents at issue in this case at the U.S. Patent and Trademark Office's Patent Trial and Appeal Board.
The companies settled their underlying fight in 2019, signing an agreement worth billions of dollars that let Apple continue using Qualcomm chips in iPhones. The settlement included an Apple license to thousands of Qualcomm patents, but allowed the patent-board proceedings to continue.
The board upheld the patents in 2020, and Apple appealed to the patent-specialist U.S. Court of Appeals for the Federal Circuit. Cupertino, California-based Apple argued it had proper legal standing to appeal because San Diego-based Qualcomm could sue again after the license expires, potentially as soon as 2025.
A Federal Circuit three-judge panel, in a 2-1 ruling, dismissed the case last year for a lack of standing, finding that Apple's risk of being sued again was speculative and the challenge would not affect its payment obligations under the settlement.
Qualcomm has again argued that Apple has not shown a concrete injury to justify the appeal, just like in the "materially identical" case that the high court rejected.
(Reporting by Blake Brittain; Editing by Will Dunham)
((Blake.Brittain@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 Blake Brittain WASHINGTON, Oct 3 - The U.S. Supreme Court on Monday again declined to hear Apple Inc's AAPL.O bid to revive an effort to cancel three Qualcomm Inc QCOM.O smartphone patents despite the settlement of the underlying dispute between the two tech giants. Cupertino, California-based Apple argued it had proper legal standing to appeal because San Diego-based Qualcomm could sue again after the license expires, potentially as soon as 2025. A Federal Circuit three-judge panel, in a 2-1 ruling, dismissed the case last year for a lack of standing, finding that Apple's risk of being sued again was speculative and the challenge would not affect its payment obligations under the settlement.
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By Blake Brittain WASHINGTON, Oct 3 - The U.S. Supreme Court on Monday again declined to hear Apple Inc's AAPL.O bid to revive an effort to cancel three Qualcomm Inc QCOM.O smartphone patents despite the settlement of the underlying dispute between the two tech giants. The justices left in place a lower court's decision against Apple after similarly turning away in June the company's appeal of a lower court ruling in a closely related case challenging two other Qualcomm patents. Qualcomm sued Apple in San Diego federal court in 2017, arguing that its iPhones, iPads and Apple Watches infringed a variety of mobile-technology patents.
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By Blake Brittain WASHINGTON, Oct 3 - The U.S. Supreme Court on Monday again declined to hear Apple Inc's AAPL.O bid to revive an effort to cancel three Qualcomm Inc QCOM.O smartphone patents despite the settlement of the underlying dispute between the two tech giants. The justices left in place a lower court's decision against Apple after similarly turning away in June the company's appeal of a lower court ruling in a closely related case challenging two other Qualcomm patents. Qualcomm sued Apple in San Diego federal court in 2017, arguing that its iPhones, iPads and Apple Watches infringed a variety of mobile-technology patents.
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By Blake Brittain WASHINGTON, Oct 3 - The U.S. Supreme Court on Monday again declined to hear Apple Inc's AAPL.O bid to revive an effort to cancel three Qualcomm Inc QCOM.O smartphone patents despite the settlement of the underlying dispute between the two tech giants. The justices left in place a lower court's decision against Apple after similarly turning away in June the company's appeal of a lower court ruling in a closely related case challenging two other Qualcomm patents. The board upheld the patents in 2020, and Apple appealed to the patent-specialist U.S. Court of Appeals for the Federal Circuit.
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19071.0
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2022-10-03 00:00:00 UTC
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Will Smith's first movie since Oscars slap to be released in December
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AAPL
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https://www.nasdaq.com/articles/will-smiths-first-movie-since-oscars-slap-to-be-released-in-december
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nan
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By Lisa Richwine
LOS ANGELES, Oct 3 (Reuters) - Actor Will Smith's first movie since he slapped Chris Rock at the Academy Awards, a historical thriller called "Emancipation," will debut in cinemas in December, a move that makes the film eligible for next year's Oscars.
Distributor Apple Inc AAPL.O announced the timing in a statement and released a trailer on Monday. "Emancipation," which tells the story of a man who escapes from slavery, was filmed before Smith attacked Rock on stage in February but its release date had been uncertain.
Smith is banned from attending the Oscars ceremony for 10 years, but he is still eligible to be nominated and win.
The actor has publicly apologized to Rock, the film academy and the public for slapping the comedian over a joke about the appearance of Smith's wife, Jada Pinkett Smith.
Less than an hour later, Smith won best actor for playing the father of tennis legends Venus and Serena Williams in "King Richard."
"Emancipation" will play exclusively in theaters for one week starting on Dec. 2 and will debut on the Apple TV+ streaming service on Dec. 9, Apple said.
The movie was inspired by a real-life story of a man who became known as "Whipped Peter" after Harper's Weekly published images in 1863 of extensive scarring on his back from whippings he received as a slave.
(Reporting by Lisa Richwine; Editing by Sandra Maler)
((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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Distributor Apple Inc AAPL.O announced the timing in a statement and released a trailer on Monday. By Lisa Richwine LOS ANGELES, Oct 3 (Reuters) - Actor Will Smith's first movie since he slapped Chris Rock at the Academy Awards, a historical thriller called "Emancipation," will debut in cinemas in December, a move that makes the film eligible for next year's Oscars. "Emancipation," which tells the story of a man who escapes from slavery, was filmed before Smith attacked Rock on stage in February but its release date had been uncertain.
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Distributor Apple Inc AAPL.O announced the timing in a statement and released a trailer on Monday. By Lisa Richwine LOS ANGELES, Oct 3 (Reuters) - Actor Will Smith's first movie since he slapped Chris Rock at the Academy Awards, a historical thriller called "Emancipation," will debut in cinemas in December, a move that makes the film eligible for next year's Oscars. The actor has publicly apologized to Rock, the film academy and the public for slapping the comedian over a joke about the appearance of Smith's wife, Jada Pinkett Smith.
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Distributor Apple Inc AAPL.O announced the timing in a statement and released a trailer on Monday. By Lisa Richwine LOS ANGELES, Oct 3 (Reuters) - Actor Will Smith's first movie since he slapped Chris Rock at the Academy Awards, a historical thriller called "Emancipation," will debut in cinemas in December, a move that makes the film eligible for next year's Oscars. "Emancipation," which tells the story of a man who escapes from slavery, was filmed before Smith attacked Rock on stage in February but its release date had been uncertain.
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Distributor Apple Inc AAPL.O announced the timing in a statement and released a trailer on Monday. By Lisa Richwine LOS ANGELES, Oct 3 (Reuters) - Actor Will Smith's first movie since he slapped Chris Rock at the Academy Awards, a historical thriller called "Emancipation," will debut in cinemas in December, a move that makes the film eligible for next year's Oscars. "Emancipation," which tells the story of a man who escapes from slavery, was filmed before Smith attacked Rock on stage in February but its release date had been uncertain.
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19072.0
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2022-10-03 00:00:00 UTC
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Alphabet (GOOGL) Boosts YouTube Music With Autoplay Filters
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AAPL
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https://www.nasdaq.com/articles/alphabet-googl-boosts-youtube-music-with-autoplay-filters
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nan
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Alphabet’s GOOGL division Google is leaving no stone unturned to add features to its music-streaming service YouTube Music.
According to 9TO5Google, Google is rolling out Autoplay filters on YouTube Music for Android and iOS users.
The filter includes Familiar, Discover, Popular, Deep cuts, Workout, Upbeat, Pump-up, Hip-hop, R&B, Pop, Instrumental, Alternatives, 2000s and 2010s.
With Autoplay filters, Google aims to help users find more songs to listen to without browsing the Home feed.
This will provide an enhanced music-streaming experience to Android and iOS users. This is likely to boost the adoption rate of YouTube Music.
Thus, the increasing uptake of YouTube Music is expected to benefit GOOGL’s top-line in the near term.
Growing YouTube Music Efforts
Apart from the latest move, Alphabet recently rolled out the redesigned album UI on the Android tablet. The redesign version shows the artiste’s name, type of media and the release year on top. Options like download, add to library, play, share and an overflow menu are also included.
In addition, GOOGL introduced shortcut features and an album carousel to the YouTube Music’s Explore tab.
GOOGL added a capability whereby users can save queues as playlists. Alphabetalso rolled out its Recent Played and Turntable widgets to Android users.
With these recent efforts, Google positioned itself well to rapidly penetrate the booming global music-streaming market.
The market has been witnessing significant growth for a while owing to an increase in mobile advertisement spending, use of mobile apps, rise in the number of subscription services and users’ accessibility to local content on the music streaming platforms.
Per a Grand View Research report, the global music streaming market is expected to see a CAGR of 14.7% from 2022 to 2030.
Competitive Music Streaming Market
However, Alphabet faces intense competitive pressure from other companies like Amazon AMZN, Apple AAPL and Spotify SPOT, which are making consistent efforts to capitalize on the above-mentioned prospects.
Amazon is gaining strong momentum in the music streaming market on the back of its expanding global footprint. AMZN offers its premium music subscription service Amazon Music Unlimited to customers. With Amazon Music Unlimited, music lovers can listen to any song anytime and anywhere on all types of devices, including smartphone, tablet, PC/Mac, Fire TV and Alexa-enabled devices like Amazon Echo.
Apple’s music-streaming service Apple Music offers a subscription tier powered by Siri named Apple Music Voice Plan. Using Apple Music Voice Plan, subscribers can access millions of songs, playlists, personalized mixes, genre stations and Apple Music Radio. Music listeners can also download the Apple Music app on their Android tablet or Chromebook supporting Android apps.
Spotify provides commercial free music and ad-supported services to customers. Music lovers can enjoy ad-free music and offline playbacks with Spotify Premium service. SPOT users can enjoy the tablet version of Spotify on their iPad or Android tablets.
Amazon, Apple and Spotify’s growing efforts are expected to remain a threat to Alphabet’s position in the music streaming market.
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Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Spotify Technology (SPOT): 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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Competitive Music Streaming Market However, Alphabet faces intense competitive pressure from other companies like Amazon AMZN, Apple AAPL and Spotify SPOT, which are making consistent efforts to capitalize on the above-mentioned prospects. Apple Inc. (AAPL): Free Stock Analysis Report The filter includes Familiar, Discover, Popular, Deep cuts, Workout, Upbeat, Pump-up, Hip-hop, R&B, Pop, Instrumental, Alternatives, 2000s and 2010s.
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Competitive Music Streaming Market However, Alphabet faces intense competitive pressure from other companies like Amazon AMZN, Apple AAPL and Spotify SPOT, which are making consistent efforts to capitalize on the above-mentioned prospects. Apple Inc. (AAPL): Free Stock Analysis Report Growing YouTube Music Efforts Apart from the latest move, Alphabet recently rolled out the redesigned album UI on the Android tablet.
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Competitive Music Streaming Market However, Alphabet faces intense competitive pressure from other companies like Amazon AMZN, Apple AAPL and Spotify SPOT, which are making consistent efforts to capitalize on the above-mentioned prospects. Apple Inc. (AAPL): Free Stock Analysis Report With Amazon Music Unlimited, music lovers can listen to any song anytime and anywhere on all types of devices, including smartphone, tablet, PC/Mac, Fire TV and Alexa-enabled devices like Amazon Echo.
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Apple Inc. (AAPL): Free Stock Analysis Report Competitive Music Streaming Market However, Alphabet faces intense competitive pressure from other companies like Amazon AMZN, Apple AAPL and Spotify SPOT, which are making consistent efforts to capitalize on the above-mentioned prospects. According to 9TO5Google, Google is rolling out Autoplay filters on YouTube Music for Android and iOS users.
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19073.0
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2022-10-03 00:00:00 UTC
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Italian court scraps antitrust fine on Apple and Amazon
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AAPL
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https://www.nasdaq.com/articles/italian-court-scraps-antitrust-fine-on-apple-and-amazon
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nan
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nan
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Refiles to remove superfluous word, no changes to text
ROME, Oct 3 (Reuters) - An Italian administrative court scrappeda fine imposed by the country's antitrust authority on U.S. tech giants Apple AAPL.O and Amazon AMZN.O for alleged collusion, a document showed on Monday.
The antitrust authority had fined both companies a total of more than 200 million euros ($195.3 million) in 2021, citing alleged anti-competitive cooperation in the sale of Apple and Beats products.
Earlier this year, the fine was reduced to an overall 173.3 million euros due to a "material error" in the first calculation.
Amazon said in a statement it welcomed the court's decision.
The antitrust authority declined to comment, while Apple had no immediate comment.
($1 = 1.0242 euros)
(Reporting by Marco Carta and Elvira Pollina, writing by Federico Maccioni; editing by Agnieszka Flak)
((Federico.maccioni@thomsonreuters.com; +39 3420768883;))
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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Refiles to remove superfluous word, no changes to text ROME, Oct 3 (Reuters) - An Italian administrative court scrappeda fine imposed by the country's antitrust authority on U.S. tech giants Apple AAPL.O and Amazon AMZN.O for alleged collusion, a document showed on Monday. Earlier this year, the fine was reduced to an overall 173.3 million euros due to a "material error" in the first calculation. ($1 = 1.0242 euros) (Reporting by Marco Carta and Elvira Pollina, writing by Federico Maccioni; editing by Agnieszka Flak) ((Federico.maccioni@thomsonreuters.com; +39 3420768883;)) 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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Refiles to remove superfluous word, no changes to text ROME, Oct 3 (Reuters) - An Italian administrative court scrappeda fine imposed by the country's antitrust authority on U.S. tech giants Apple AAPL.O and Amazon AMZN.O for alleged collusion, a document showed on Monday. The antitrust authority had fined both companies a total of more than 200 million euros ($195.3 million) in 2021, citing alleged anti-competitive cooperation in the sale of Apple and Beats products. The antitrust authority declined to comment, while Apple had no immediate comment.
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Refiles to remove superfluous word, no changes to text ROME, Oct 3 (Reuters) - An Italian administrative court scrappeda fine imposed by the country's antitrust authority on U.S. tech giants Apple AAPL.O and Amazon AMZN.O for alleged collusion, a document showed on Monday. The antitrust authority had fined both companies a total of more than 200 million euros ($195.3 million) in 2021, citing alleged anti-competitive cooperation in the sale of Apple and Beats products. ($1 = 1.0242 euros) (Reporting by Marco Carta and Elvira Pollina, writing by Federico Maccioni; editing by Agnieszka Flak) ((Federico.maccioni@thomsonreuters.com; +39 3420768883;)) 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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Refiles to remove superfluous word, no changes to text ROME, Oct 3 (Reuters) - An Italian administrative court scrappeda fine imposed by the country's antitrust authority on U.S. tech giants Apple AAPL.O and Amazon AMZN.O for alleged collusion, a document showed on Monday. The antitrust authority had fined both companies a total of more than 200 million euros ($195.3 million) in 2021, citing alleged anti-competitive cooperation in the sale of Apple and Beats products. Earlier this year, the fine was reduced to an overall 173.3 million euros due to a "material error" in the first calculation.
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19074.0
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2022-10-03 00:00:00 UTC
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Italian court cancels antitrust fines on Apple and Amazon
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AAPL
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https://www.nasdaq.com/articles/italian-court-cancels-antitrust-fines-on-apple-and-amazon
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nan
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nan
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ROME, Oct 3 (Reuters) - An Italian administrative court canceled a fine imposed by the country's antitrust authority on U.S. tech giants Apple AAPL.O and Amazon AMZN.O for alleged collusion, a document showed on Monday.
(Reporting by Marco Carta, writing by Federico Maccioni; editing by Agnieszka Flak)
((Federico.maccioni@thomsonreuters.com; +39 3420768883;))
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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ROME, Oct 3 (Reuters) - An Italian administrative court canceled a fine imposed by the country's antitrust authority on U.S. tech giants Apple AAPL.O and Amazon AMZN.O for alleged collusion, a document showed on Monday. (Reporting by Marco Carta, writing by Federico Maccioni; editing by Agnieszka Flak) ((Federico.maccioni@thomsonreuters.com; +39 3420768883;)) 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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ROME, Oct 3 (Reuters) - An Italian administrative court canceled a fine imposed by the country's antitrust authority on U.S. tech giants Apple AAPL.O and Amazon AMZN.O for alleged collusion, a document showed on Monday. (Reporting by Marco Carta, writing by Federico Maccioni; editing by Agnieszka Flak) ((Federico.maccioni@thomsonreuters.com; +39 3420768883;)) 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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ROME, Oct 3 (Reuters) - An Italian administrative court canceled a fine imposed by the country's antitrust authority on U.S. tech giants Apple AAPL.O and Amazon AMZN.O for alleged collusion, a document showed on Monday. (Reporting by Marco Carta, writing by Federico Maccioni; editing by Agnieszka Flak) ((Federico.maccioni@thomsonreuters.com; +39 3420768883;)) 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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ROME, Oct 3 (Reuters) - An Italian administrative court canceled a fine imposed by the country's antitrust authority on U.S. tech giants Apple AAPL.O and Amazon AMZN.O for alleged collusion, a document showed on Monday. (Reporting by Marco Carta, writing by Federico Maccioni; editing by Agnieszka Flak) ((Federico.maccioni@thomsonreuters.com; +39 3420768883;)) 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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19075.0
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2022-10-03 00:00:00 UTC
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AVID Introduces Pro Tools Upgrades for the Music Community
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AAPL
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https://www.nasdaq.com/articles/avid-introduces-pro-tools-upgrades-for-the-music-community
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nan
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nan
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Avid Technology AVID recently announced the launch of its latest Pro Tools release, 2022.09, with new features for the music community.
The recent version of Pro Tools will provide music creators of every skill level with new workflows such as Celemony Melodyne and SoundFlow Cloud Avid Edition.
Pro Tools is featured with Celemony Melodyne software via ARA 2 (Audio Random Access) for quick vocal tuning, creating harmonies and re-voicing instruments and fixing rhythm timing. To simplify audio setups, Avid Technology is powered with another technology, Aux I/O. This enables flexible audio routing to and from Pro Tools to various software and hardware simultaneously.
Avid introduced the Pro Tools Software in late April 2022 as a new lower-priced tier directed at the music creation community. Music creators can use the software to make beats, write songs, record vocals and instruments and mix studio-quality music.
The initial result from the Pro Tools Artist offering reflected solid demand for the product, which helped to increase Avid’s subscriber base and positively impacted the subscription revenue growth in the second quarter of 2022. The recent offering of Pro Tools software is expected to increase the company’s brand awareness for the product as musicians and producers will use the product for developing their music.
Avid Latest Pro Tools Launch to Drive Top Line
Avid is facing competition across its product offerings from companies like ChryonHego corporation, Dell Technologies, Adobe, Yamaha Corporation and big tech giants like Apple AAPL.
Apple has cut into the video editing space as it provides less expensive digital video editing software. Apple’s video editing software uses machine learning to help provide video editing features and is currently available with its latest iPhone offerings, which are helping the company to gain market share in the video editing software market.
Avid also witnessed a 10.6% decline in integrated solutions revenues in second-quarter 2022, as the company continued to face challenges in delivering certain parts of its integrated solutions portfolio to customers due to global supply chain constraints. In the first half of the year, Avid’s unfulfilled contractually committed orders were more than 20 million. This impacted revenue growth negatively.
However, to deal with the rising competition, Avid has forged strategic partnerships with other FAAAM companies like Amazon AMZN and Microsoft MSFT.
Avid has partnered with Amazon studios to help in Amazon’s content production in the cloud with software such as Media Composer, Nexis storage and media control platform.
Avid is also benefiting from its multi-year agreement with Microsoft, which includes technology collaboration, co-development of cloud bases solutions and the launch of several software-as-a-service offerings. This partnership is helping Avid create new technologies, which are attracting new users to many of its subscription-based product offerings.
In the second quarter, Avid realized net adds of 18,500 subscriptions and delivered year-over-year growth of 22%.
The company expects that the effects of the supply chain constraints will start resolving from the second half of 2022, and Avid will be able to cover much of its backlog.
Also, rising inflation has placed huge pressure on media technology budgets, while content output is expected to increase exponentially to meet the rising demand. To attract next-generation creators amidst this market volatility, Avid created the Pro Tools Artist as a low-priced tier, which will contribute to its subscription revenue growth.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
See them 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
Microsoft Corporation (MSFT): Free Stock Analysis Report
Avid Technology, Inc. (AVID): 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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Avid Latest Pro Tools Launch to Drive Top Line Avid is facing competition across its product offerings from companies like ChryonHego corporation, Dell Technologies, Adobe, Yamaha Corporation and big tech giants like Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Pro Tools is featured with Celemony Melodyne software via ARA 2 (Audio Random Access) for quick vocal tuning, creating harmonies and re-voicing instruments and fixing rhythm timing.
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Avid Latest Pro Tools Launch to Drive Top Line Avid is facing competition across its product offerings from companies like ChryonHego corporation, Dell Technologies, Adobe, Yamaha Corporation and big tech giants like Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Avid Technology AVID recently announced the launch of its latest Pro Tools release, 2022.09, with new features for the music community.
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Avid Latest Pro Tools Launch to Drive Top Line Avid is facing competition across its product offerings from companies like ChryonHego corporation, Dell Technologies, Adobe, Yamaha Corporation and big tech giants like Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Avid Technology AVID recently announced the launch of its latest Pro Tools release, 2022.09, with new features for the music community.
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Avid Latest Pro Tools Launch to Drive Top Line Avid is facing competition across its product offerings from companies like ChryonHego corporation, Dell Technologies, Adobe, Yamaha Corporation and big tech giants like Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Avid Technology AVID recently announced the launch of its latest Pro Tools release, 2022.09, with new features for the music community.
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19076.0
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2022-10-03 00:00:00 UTC
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Is Schwab Fundamental U.S. Large Company Index ETF (FNDX) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-schwab-fundamental-u.s.-large-company-index-etf-fndx-a-strong-etf-right-now-4
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nan
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A smart beta exchange traded fund, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) debuted on 08/13/2013, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
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.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
FNDX is managed by Charles Schwab, and this fund has amassed over $8.53 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. Before fees and expenses, FNDX seeks to match the performance of the Russell RAFI US Large Co. Index.
The Russell RAFI US Large Company Index measures the performance of the large company size segment by fundamental overall company scores.
Cost & Other Expenses
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 cousins, other things remaining the same.
Operating expenses on an annual basis are 0.25% for FNDX, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0%.
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.
FNDX's heaviest allocation is in the Information Technology sector, which is about 16.10% of the portfolio. Its Financials and Healthcare round out the top three.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT).
Its top 10 holdings account for approximately 19.55% of FNDX's total assets under management.
Performance and Risk
Year-to-date, the Schwab Fundamental U.S. Large Company Index ETF has lost about -17.83% so far, and is down about -9.46% over the last 12 months (as of 10/03/2022). FNDX has traded between $47.76 and $59.90 in this past 52-week period.
FNDX has a beta of 0.99 and standard deviation of 24.73% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 729 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Large Company Index ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $47.19 billion in assets, Vanguard Value ETF has $89.43 billion. IWD has an expense ratio of 0.18% and VTV charges 0.04%.
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 Value.
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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Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): 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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When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report A smart beta exchange traded fund, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) debuted on 08/13/2013, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report A smart beta exchange traded fund, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) debuted on 08/13/2013, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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When you look at individual holdings, Apple Inc (AAPL) accounts for about 4.39% of the fund's total assets, followed by Exxon Mobil Corp (XOM) and Microsoft Corp (MSFT). Apple Inc. (AAPL): Free Stock Analysis Report A smart beta exchange traded fund, the Schwab Fundamental U.S. Large Company Index ETF (FNDX) debuted on 08/13/2013, and offers broad exposure to the Style Box - Large Cap Value category of the market.
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19077.0
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2022-10-03 00:00:00 UTC
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Should Engine No. 1 Transform 500 ETF (VOTE) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-engine-no.-1-transform-500-etf-vote-be-on-your-investing-radar-1
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nan
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nan
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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Engine No. 1 Transform 500 ETF (VOTE), a passively managed exchange traded fund launched on 06/22/2021.
The fund is sponsored by Engine No. 1. It has amassed assets over $299.45 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
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 usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0%.
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 28.20% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.19% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 27.74% of total assets under management.
Performance and Risk
VOTE seeks to match the performance of the MORNINGSTAR US LARGE CAP SELECT INDEX before fees and expenses. The Morningstar US Large Cap Select Index is market cap-weighted and tracks the 500 largest companies in the US.
The ETF has lost about -25.20% so far this year and is down about -17.14% in the last one year (as of 10/03/2022). In the past 52-week period, it has traded between $41.59 and $56.33.
The ETF has a beta of 1 and standard deviation of 20.30% for the trailing three-year period. With about 509 holdings, it effectively diversifies company-specific risk.
Alternatives
Engine No. 1 Transform 500 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, VOTE 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 $267.27 billion in assets, SPDR S&P 500 ETF has $322.73 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.
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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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Engine No. 1 Transform 500 ETF (VOTE): 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.
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 7.19% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $299.45 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Apple Inc. (AAPL): Free Stock Analysis Report Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.19% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Performance and Risk VOTE seeks to match the performance of the MORNINGSTAR US LARGE CAP SELECT INDEX before fees and expenses.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.19% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report 1 Transform 500 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 7.19% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space.
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19078.0
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2022-10-03 00:00:00 UTC
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Should Vanguard S&P 500 Growth ETF (VOOG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-sp-500-growth-etf-voog-be-on-your-investing-radar-3
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nan
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nan
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Launched on 09/09/2010, the Vanguard S&P 500 Growth ETF (VOOG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $6.14 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Further, growth stocks have a higher level of volatility associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
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 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. 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 44.90% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.50% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 53.31% of total assets under management.
Performance and Risk
VOOG seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of large-capitalization growth stocks.
The ETF has lost about -30.95% so far this year and is down about -21.10% in the last one year (as of 10/03/2022). In the past 52-week period, it has traded between $208.55 and $305.94.
The ETF has a beta of 1.07 and standard deviation of 27.26% for the trailing three-year period, making it a medium risk choice in the space. With about 242 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard S&P 500 Growth 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, VOOG is an outstanding 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 $66.35 billion in assets, Invesco QQQ has $144.88 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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.
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.
Get it 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
Vanguard S&P 500 Growth ETF (VOOG): 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
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 14.50% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report It has amassed assets over $6.14 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Apple Inc. (AAPL): Free Stock Analysis Report Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.50% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Invesco QQQ (QQQ): ETF Research Reports
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.50% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report 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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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 14.50% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Apple Inc. (AAPL): Free Stock Analysis Report They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
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19079.0
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2022-10-03 00:00:00 UTC
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Like Passive Income? Buy These 2 No-Brainer Warren Buffett Stocks
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AAPL
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https://www.nasdaq.com/articles/like-passive-income-buy-these-2-no-brainer-warren-buffett-stocks
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nan
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nan
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Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) doesn't pay a dividend, but that doesn't mean CEO Warren Buffett avoids owning dividend stocks. Berkshire's stock portfolio is heavily weighted toward companies that regularly cut checks to shareholders, with each of the conglomerate's 10 largest holdings paying a dividend.
Given Berkshire's history of market-crushing performance, the company's portfolio holdings could be a good starting point for investors on the hunt for dependable dividend stocks. Read on for a look at two top income-generating stocks in the Berkshire portfolio.
Image source: The Motley Fool.
1. Chevron
Chevron (NYSE: CVX) is Berkshire Hathaway's fourth-largest overall stock holding and accounts for roughly 7.5% of the investment conglomerate's portfolio. With its 3.9% dividend yield, the energy company is also one of the biggest generators of dividend-based income for Berkshire.
Chevron is an integrated oil and gas company, which means that it's involved in the exploration and extraction, transportation, refinement, and marketing of these resources. That's been a great position to be in as energy prices surged over the last year, and a combination of supply constraints and rising demand led to soaring earnings and stock performance that's trounced the broader market.
Chevron posted net income of $11.6 billion in the second quarter, up from earnings of $3.1 billion in the prior-year period, and the company's operating cash flow for the first half of the year nearly doubled to reach $21.8 billion. With no signs of the conflict between Russia and Ukraine resolving in the near future and the potential for a continued pivot away from Russian energy even if the situation draws to a close, oil prices look poised to remain relatively high in the near future. And Chevron remains well positioned to navigate pricing fluctuations over the long term.
With strong financials and a business that looks set to continue generating great free cash flow, Chevron looks like a reliable, income-generating stock. The company doubled the dividend it pays per share since 2010, and continued stock buybacks should also be a positive catalyst for earnings per share and help the company continue to deliver payout increases.
2. HP
HP (NYSE: HPQ) stock yields a solid 3.9% dividend at current prices, and there's a good chance that the company will announce a significant payout boost when it reports fourth-quarter earnings. The tech specialist's last payout increase came in at a hefty 29%, and the company appears to be in solid shape to continue serving up reliable payout growth. There's an interesting business turnaround story at play here as well despite an overall soggy outlook for HP's traditional printers segment.
The hardware company revamped its approach to the PC and laptop markets. While HP previously focused on midrange devices that offered relatively weak margins, it's shifting its focus toward high-performance machines that are also capable of driving higher profits. This pivot is in line with changing demand trends in both the consumer and enterprise markets, and HP does a good job of delivering devices that can compete against Apple and other high-end manufacturers while also offering better prices.
HP also has opportunities in some categories that could drive more explosive growth. While the excitement surrounding 3D printers cooled considerably from its peak, the company still has a leading position in the space, and it stands to benefit if demand in the category picks up.
The hardware maker also looks conservatively valued.
HPQ PE Ratio data by YCharts
With the stock trading at roughly 4.5 times last year's earnings and 6.3 times this year's expected profits, HP's low earnings multiples and sizable dividend yield could help the stock hold up well if the broader market continues to see turbulent trading in the near term. And if the company's pivot in the computer hardware market continues to be successful, the stock could deliver fantastic capital appreciation in addition to dependable dividend payments.
10 stocks we like better than Chevron
When our award-winning 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 Chevron 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 August 17, 2022
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and HP. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on 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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That's been a great position to be in as energy prices surged over the last year, and a combination of supply constraints and rising demand led to soaring earnings and stock performance that's trounced the broader market. HP (NYSE: HPQ) stock yields a solid 3.9% dividend at current prices, and there's a good chance that the company will announce a significant payout boost when it reports fourth-quarter earnings. This pivot is in line with changing demand trends in both the consumer and enterprise markets, and HP does a good job of delivering devices that can compete against Apple and other high-end manufacturers while also offering better prices.
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With strong financials and a business that looks set to continue generating great free cash flow, Chevron looks like a reliable, income-generating stock. HPQ PE Ratio data by YCharts With the stock trading at roughly 4.5 times last year's earnings and 6.3 times this year's expected profits, HP's low earnings multiples and sizable dividend yield could help the stock hold up well if the broader market continues to see turbulent trading in the near term. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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The company doubled the dividend it pays per share since 2010, and continued stock buybacks should also be a positive catalyst for earnings per share and help the company continue to deliver payout increases. HPQ PE Ratio data by YCharts With the stock trading at roughly 4.5 times last year's earnings and 6.3 times this year's expected profits, HP's low earnings multiples and sizable dividend yield could help the stock hold up well if the broader market continues to see turbulent trading in the near term. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple.
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The company doubled the dividend it pays per share since 2010, and continued stock buybacks should also be a positive catalyst for earnings per share and help the company continue to deliver payout increases. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway (B shares), and HP.
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19080.0
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2022-10-03 00:00:00 UTC
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With iPhone 14 Demand Lackluster, What To Expect From Apple Supplier Stocks?
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AAPL
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https://www.nasdaq.com/articles/with-iphone-14-demand-lackluster-what-to-expect-from-apple-supplier-stocks
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nan
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nan
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Our Theme of Apple Component Supplier Stocks, which includes a diverse set of companies that supply components for Apple’s devices, has declined by about 28% year-to-date, underperforming both the S&P 500 (down 23%), and Apple stock (down about 17%). While technology names, in general, have taken a hit due to rising interest rates and concerns about the broader economy, Apple supplier stocks fell recently amid reports that demand for the latest iPhone 14 handsets, which were launched earlier this month, remains weaker than expected. Per Bloomberg, Apple has asked its suppliers to hold off on plans to raise production of the iPhone 14 series by as many as 6 million units over the second half of the year. According to the report, Apple now aims to produce about 90 million handsets for the period, roughly flat versus last year. Moreover, Apple has essentially kept prices for its new iPhones flat over the last few years, while investors were actually expecting a price hike this time around. This could translate into some pricing pressure for component vendors as Apple tries to protect its margins.
While these are negative developments for Apple’s suppliers, there could be some trends that could help the stocks in our theme as well. Demand for the pricier top-end iPhone 14 Pro models – which saw more substantial upgrades – is apparently stronger than for the standard versions and this could help partially offset weaker volume growth. Separately, the broader industry transition to 5G wireless networks is also likely to help Apple’s suppliers, who are largely focused on wireless chipsets and related semiconductors. For example, Android device vendors have been looking to equip more of their mid-range and lower-end models with 5G capabilities.
Within our theme, Qorvo (NASDAQ:QRVO), a semiconductor vendor best known for supplying radio frequency components, ultra-wideband, and WiFi solutions for consumer electronics products, has been the weakest performer, with its stock falling by about 47% year-to-date. On the other side, Texas Instruments (NASDAQ:TXN) stock has been a relative outperformer in our theme, declining by just about 14% year-to-date.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Sep 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
QRVO Return -8% -47% 57%
S&P 500 Return -6% -22% 66%
Trefis Multi-Strategy Portfolio -9% -23% 203%
[1] Month-to-date and year-to-date as of 9/29/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
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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While technology names, in general, have taken a hit due to rising interest rates and concerns about the broader economy, Apple supplier stocks fell recently amid reports that demand for the latest iPhone 14 handsets, which were launched earlier this month, remains weaker than expected. Demand for the pricier top-end iPhone 14 Pro models – which saw more substantial upgrades – is apparently stronger than for the standard versions and this could help partially offset weaker volume growth. Within our theme, Qorvo (NASDAQ:QRVO), a semiconductor vendor best known for supplying radio frequency components, ultra-wideband, and WiFi solutions for consumer electronics products, has been the weakest performer, with its stock falling by about 47% year-to-date.
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Our Theme of Apple Component Supplier Stocks, which includes a diverse set of companies that supply components for Apple’s devices, has declined by about 28% year-to-date, underperforming both the S&P 500 (down 23%), and Apple stock (down about 17%). While technology names, in general, have taken a hit due to rising interest rates and concerns about the broader economy, Apple supplier stocks fell recently amid reports that demand for the latest iPhone 14 handsets, which were launched earlier this month, remains weaker than expected. Total [2] QRVO Return -8% -47% 57% S&P 500 Return -6% -22% 66% Trefis Multi-Strategy Portfolio -9% -23% 203% [1] Month-to-date and year-to-date as of 9/29/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates 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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Our Theme of Apple Component Supplier Stocks, which includes a diverse set of companies that supply components for Apple’s devices, has declined by about 28% year-to-date, underperforming both the S&P 500 (down 23%), and Apple stock (down about 17%). While technology names, in general, have taken a hit due to rising interest rates and concerns about the broader economy, Apple supplier stocks fell recently amid reports that demand for the latest iPhone 14 handsets, which were launched earlier this month, remains weaker than expected. Total [2] QRVO Return -8% -47% 57% S&P 500 Return -6% -22% 66% Trefis Multi-Strategy Portfolio -9% -23% 203% [1] Month-to-date and year-to-date as of 9/29/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates 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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Our Theme of Apple Component Supplier Stocks, which includes a diverse set of companies that supply components for Apple’s devices, has declined by about 28% year-to-date, underperforming both the S&P 500 (down 23%), and Apple stock (down about 17%). According to the report, Apple now aims to produce about 90 million handsets for the period, roughly flat versus last year. Total [2] QRVO Return -8% -47% 57% S&P 500 Return -6% -22% 66% Trefis Multi-Strategy Portfolio -9% -23% 203% [1] Month-to-date and year-to-date as of 9/29/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates 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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19081.0
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2022-10-03 00:00:00 UTC
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Down 75%, Is There Any Hope Left for Spotify?
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AAPL
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https://www.nasdaq.com/articles/down-75-is-there-any-hope-left-for-spotify
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nan
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nan
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Spotify (NYSE: SPOT) was a popular growth stock in 2020 and early 2021. The music and audio-streaming platform gained over 150% in less than a year after investors grew increasingly bullish on the future of music streaming and the major podcast deals the company was announcing. The stock hit an all-time high of around $360 per share in early 2021. But now, a year and a half later, shares have cratered below $90, or more than 75% below their all-time high. With a bear market currently raging, everyone has turned from optimist to pessimist on Spotify's potential.
While investors have aggressively sold off Spotify stock in 2022, the business looks as healthy as ever. Here's why now is the perfect time to pick up some shares.
A growing user base and steady subscription business
While a lot of consumer internet businesses (example: Netflix) have struggled in 2022, Spotify's user growth has chugged along to higher levels. In the second quarter, the platform's monthly active users (MAUs) hit 433 million, up 19% year over year and 3% from the previous quarter. Spotify is available in every major country around the world, except China, and it has continued to see users adopt its service as music streaming has grown in popularity. By 2030, management has a goal of hitting one billion active users, which would more than double its existing user base.
Currently, the main way Spotify makes money from these users is by converting them to premium ad-free subscriptions. Last quarter, the company had 188 million premium subscribers, growing 14% year over year. Subscribers pay a monthly rate (the price varies depending on country/plan) to be able to listen to the world's music library without advertisements, download music for offline listening, as well as other features. Subscription revenue makes up the majority of Spotify's top line right now at 87% of overall sales last quarter, and it has been the driving force behind the company's revenue eclipsing $10 billion a year.
Spotify's music subscription business is stable and growing, but the company is also trying to expand into new monetization strategies. Enter podcasts and audiobooks.
Expansion into podcasts ... and now audiobooks?
Over the last few years, Spotify has invested heavily in podcasts. The endeavor has been so successful that the platform is now the No. 1 choice for podcast listeners in many markets, including the United States. With only a few years in the business, it's quite impressive to see Spotify overtake the incumbent Apple Podcasts and convince users to switch their preferred platform.
So what did Spotify do to gain so much market share? A few things. It has signed exclusive deals with top shows like the Joe Rogan Experience and Call Her Daddy, attracting users to its service. It has also acquired multiple studios like The Ringer and Parcast, which produce hit shows for the company. Third -- and likely most important -- it was able to easily cross-promote podcasts to its existing user base of hundreds of millions of listeners around the globe.
To monetize podcasting, Spotify has built a dynamic advertising marketplace, which works similarly to YouTube advertising. The marketplace is barely over a year old (it launched in early 2021) but has already helped drive growth for Spotify's advertising revenue. The ad-supported segment grew revenue 31% year over year last quarter and should prove to be a core piece of Spotify's consolidated revenue this decade.
Lastly, we shouldn't forget the company's recent launch into audiobooks, another popular audio medium. Spotify has only released a-la-carte titles in the United States so far, but audiobooks can bolster Spotify's offering by making it an one-stop shop where users can get all of their music, podcasts, and audiobooks from a single application.
The price looks appealing, but be patient
Spotify's business is doing just fine, which presents investors with a fantastic buying opportunity with shares down 75% from all-time highs. As of this writing, the stock trades at a market cap of $16.6 billion. Over the last 12 months, the company has generated $3.1 billion in gross profit. Since the business has not generated consistent net profits, gross profit is a suitable valuation measure for the stock, especially because Spotify has such low gross margins. This equates to a trailing price-to-gross profit ratio of 5.4.
This gross-profit multiple is right around the market average and implies investors may not not that confident Spotify can continue growing at its current rate. If you disagree and think there is still a lot of potential within the music streaming, podcast, and even audiobook markets, Spotify stock looks like a buy here. Don't give up hope on this growth stock just yet.
10 stocks we like better than Spotify Technology
When our award-winning 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 Spotify Technology 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 17, 2022
Brett Schafer has positions in Spotify Technology. The Motley Fool has positions in and recommends Apple, Netflix, and Spotify Technology. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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Spotify is available in every major country around the world, except China, and it has continued to see users adopt its service as music streaming has grown in popularity. With only a few years in the business, it's quite impressive to see Spotify overtake the incumbent Apple Podcasts and convince users to switch their preferred platform. The price looks appealing, but be patient Spotify's business is doing just fine, which presents investors with a fantastic buying opportunity with shares down 75% from all-time highs.
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In the second quarter, the platform's monthly active users (MAUs) hit 433 million, up 19% year over year and 3% from the previous quarter. Last quarter, the company had 188 million premium subscribers, growing 14% year over year. If you disagree and think there is still a lot of potential within the music streaming, podcast, and even audiobook markets, Spotify stock looks like a buy here.
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With only a few years in the business, it's quite impressive to see Spotify overtake the incumbent Apple Podcasts and convince users to switch their preferred platform. Spotify has only released a-la-carte titles in the United States so far, but audiobooks can bolster Spotify's offering by making it an one-stop shop where users can get all of their music, podcasts, and audiobooks from a single application. If you disagree and think there is still a lot of potential within the music streaming, podcast, and even audiobook markets, Spotify stock looks like a buy here.
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The stock hit an all-time high of around $360 per share in early 2021. So what did Spotify do to gain so much market share? If you disagree and think there is still a lot of potential within the music streaming, podcast, and even audiobook markets, Spotify stock looks like a buy here.
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19082.0
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2022-10-02 00:00:00 UTC
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The No. 1 Quality That Top Stocks Share (and It's Not Even Close)
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AAPL
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https://www.nasdaq.com/articles/the-no.-1-quality-that-top-stocks-share-and-its-not-even-close
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nan
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nan
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The stock market sell-off has compressed the valuations of good and bad businesses alike. All three major indexes -- the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite -- are in a bear market. And while it may be tempting to go bottom fishing by scooping up shares of stocks that are down big off their highs, the safer and potentially more rewarding route is to simply stick with top companies that stand out from the competition.
Investors categorize stocks into buckets -- like growth stocks versus value or dividend stocks. But no matter the size of the company or its industry, there's one key trait that all top stocks share: consistency. Here's why investing in consistent companies can be an excellent strategy for outlasting a prolonged bear market.
Image source: Getty Images.
Setting expectations
Consistency can take different forms depending on the company. But as a rule of thumb, consistent businesses are those that bridge the gap between expectations, financial goals, and real results.
As a recent example, FedEx's (NYSE: FDX) inability to forecast accurately caused the largest single-day percentage stock decline in company history. The shipping specialist's upbeat tone and record guidance from late June proved to be way off base after it called for lower-than-expected first-half fiscal 2023 results and failed to provide full-year fiscal 2023 guidance.
FedEx has a track record of inconsistency that dates back to the peak of the U.S.-China trade war in 2018, when the company produced lower-than-expected results and routinely missed guidance. FedEx may be an inexpensive stock with a decent dividend yield. And it could even be a nice turnaround play. But it is far less consistent than its peer, United Parcel Service (NYSE: UPS).
UPS has a better track record than FedEx of hitting its financial guidance, navigating challenges, and deploying capital efficiently without overspending. The package delivery industry is cyclical and capital-intensive. UPS and FedEx depend on a blend of business-to-business and business-to-consumer deliveries to domestic and international buyers. Both companies sport incredibly sophisticated supply chains, logistics, and distribution networks. Labor and fuel costs are high, making forecasting an essential quality of a good package delivery company. No one has a crystal ball. But being roughly right when it comes to accurately predicting buyer behavior separates an excellent package delivery company like UPS from an OK one like FedEx.
In sum, the main differentiating factor between these two companies isn't their dividend yields, valuation, or even a year's worth of revenue or earnings. Rather, it is the ability of UPS to better leverage its resources and capital to execute on goals and limit disappointing shareholders.
Delivering on long-term targets
Another core trait of consistent companies is their ability to deliver on long-term targets. For some companies, that could simply mean growing the dividend and supporting it with free cash flow (FCF) or sustaining a high profit margin while growing the top line. For others, it could mean bringing a new product or service to market and increasing customer adoption and retention.
Apple (NASDAQ: AAPL) is an excellent example of a company that has delivered on its long-term targets. It wasn't long ago that investors questioned the feasibility of Apple's wearables, its penetration into wireless earbuds, its ability to continue generating growth from its phones and computers, and the establishment of its services segment. Apple has proven that it has arguably the strongest consumer electronic product ecosystem of any company in the world. Its ability to make new versions of its flagship products while also integrating new products and services into the ecosystem has led to sustained growth, high margins, efficient use of capital, and outsized profits.
Apple has shown that despite its size, it can still grow quickly and drive shareholder value through organic growth and boosting earnings per share through buybacks. The below chart says it all.
AAPL Shares Outstanding data by YCharts
In just five years, Apple has more than doubled its net income and reduced its outstanding share count by a staggering 21.6%. Apple's ability to reinvest capital efficiently in its business and still have plenty of dry powder to buy back its own stock is a testament to the success it has had with hitting its long-term goals of product innovation and vertically integrating its business with both hardware and software. Companies a fraction of the size of Apple tend to have trouble growing profits at a faster rate than revenue. But Apple's ability to drive profits at a faster rate than sales is an example of its pricing power and loyal customer base.
Profiles in consistency
UPS and Apple are just two examples of the many consistent companies that are on sale now. Although they are in different industries and have little in common as companies, they are very similar investments. At the end of the day, long-term investing aims to find companies that can continue delivering growth over time.
For UPS, growth results in a larger dividend, the expansion of routes and services, and branching into new markets such as healthcare and automotive.
In Apple's case, growth results in share buybacks, product development, and expanding its ecosystem to retain existing customers, boost revenue per customer, and attract new customers into the ecosystem.
By understanding what consistency looks like, an investor can put their hard-earned savings to work in quality companies no matter the industry.
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Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and FedEx. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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Apple (NASDAQ: AAPL) is an excellent example of a company that has delivered on its long-term targets. AAPL Shares Outstanding data by YCharts In just five years, Apple has more than doubled its net income and reduced its outstanding share count by a staggering 21.6%. And while it may be tempting to go bottom fishing by scooping up shares of stocks that are down big off their highs, the safer and potentially more rewarding route is to simply stick with top companies that stand out from the competition.
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Apple (NASDAQ: AAPL) is an excellent example of a company that has delivered on its long-term targets. AAPL Shares Outstanding data by YCharts In just five years, Apple has more than doubled its net income and reduced its outstanding share count by a staggering 21.6%. Delivering on long-term targets Another core trait of consistent companies is their ability to deliver on long-term targets.
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Apple (NASDAQ: AAPL) is an excellent example of a company that has delivered on its long-term targets. AAPL Shares Outstanding data by YCharts In just five years, Apple has more than doubled its net income and reduced its outstanding share count by a staggering 21.6%. Investors categorize stocks into buckets -- like growth stocks versus value or dividend stocks.
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Apple (NASDAQ: AAPL) is an excellent example of a company that has delivered on its long-term targets. AAPL Shares Outstanding data by YCharts In just five years, Apple has more than doubled its net income and reduced its outstanding share count by a staggering 21.6%. But no matter the size of the company or its industry, there's one key trait that all top stocks share: consistency.
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19083.0
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2022-10-02 00:00:00 UTC
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3 Stocks to Avoid This Week
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-avoid-this-week-46
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nan
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nan
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Investors can't seem to catch a break these days. The "three stocks to avoid" in my column last week that I thought were going to lose to the market -- Cracker Barrel Old Country Store (NASDAQ: CBRL), Rite Aid (NYSE: RAD), and Lennar (NYSE: LEN) -- fell 6%, 29%, and 3%, respectively, averaging out to a 12.7% decline.
The S&P 500 experienced a 2.9% move lower, so I was correct. I have been right in 32 of the past 50 weeks, or 64% of the time.
Now let's look at the week ahead. I see Apple (NASDAQ: AAPL), Conagra Brands (NYSE: CAG), and Gold Fields (NYSE: GFI) as stocks you might want to consider steering clear of this week. Let's go over my near-term concerns with all three investments.
Image source: Getty Images.
1. Apple
The country's most valuable company by market cap -- the only one currently perched above $2 trillion in value -- proved mortal last week. The consumer tech giant tumbled 8%, a big drop for a titan that was previously holding up well against the correcting market. Apple is finally trading closer to its 52-week low than its high.
The new iPhone 14 may have generated some buzz when it was unveiled a few weeks ago, but consumers have tired of annual upgrade cycles for smartphones. The incremental improvements are nice, but they may not be enough to woo shoppers who are already clutching their savings harder than they have in a long time.
There was a notable analyst downgrade last week. Wamsi Mohan at Bank of America thinks the global climate of inflation, rising interest rates, and geopolitical conflict will weigh on the previously waterproof Apple stock. As a company with heavy volume outside the U.S. market, it's worth noting that the strong dollar will eat into reported revenue from those overseas transactions. There was also a Bloomberg story reporting that Apple is asking suppliers to pare back iPhone 14 production in light of uninspiring global demand.
Is Apple overvalued at 23 times trailing earnings? Apple is a company that seems to have one good fiscal year followed by two years of single-digit and sometimes even negative revenue growth. It could bounce back after last week's setback, but when I see all those wireless company ads pitching iPhones for practically nothing, I see a behemoth behind an aspirational brand that could be in trouble.
2. Conagra Brands
Instinctively, you don't want to bet against Conagra Brands. It's the company that stocks supermarket shelves with Duncan Hines cake mix, Slim Jim jerky, and Hunt's ketchup. Even in a recession, we have to eat. The problem for a king of brands is that rising food prices are probably sending shoppers to lower-margin house brands. Why buy Conagra's Pam or Reddi-Wip when the store-brand version of the cooking spray or whipped cream is easier on the pocket?
Conagra reports financial results for its fiscal first quarter on Thursday morning. Analysts aren't holding out for much, and it's not as if Conagra is an upbeat earnings surprise machine after beating Wall Street profit targets just once over the past three reports. The market sees Conagra growing its revenue by less than 5% this fiscal year, with earnings per share rising even less than that. Sales are expected to slow to just 1% growth next fiscal year. The 3.8% yield should provide some support, but it's not exactly the safe haven it plays itself out to be.
3. Gold Fields
September was brutal. It was the market's worst month since March 2020. It was also the worst September -- a month that has historically been challenging -- in 20 years. The bear market may not be over, but it wouldn't surprise me if there was at least a small bounce early in October. This call finds me eyeing Gold Fields.
I'm not an expert on South African gold mining stocks, but I saw what happened last week. As most stocks tumbled, precious metals proved shiny. Half of the 10 largest stocks to gain at least 10% last week were gold miners, and Gold Fields commands the largest market of the five stocks on that list. The fundamentals for Gold Fields are fine, and it's in the process of gobbling up a smaller player to expand its global footprint. However, I needed to find a sector that could slide at the expense of a market rally, and tag, you're it, Gold Fields.
It's going to be a bumpy road for some of these investments. If you're looking for safe stocks, you aren't likely to find them in Apple, Conagra, and Gold Fields this week.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple 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 30, 2022
Rick Munarriz has positions in Apple. The Motley Fool has positions in and recommends Apple and Lennar Corporation. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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I see Apple (NASDAQ: AAPL), Conagra Brands (NYSE: CAG), and Gold Fields (NYSE: GFI) as stocks you might want to consider steering clear of this week. Wamsi Mohan at Bank of America thinks the global climate of inflation, rising interest rates, and geopolitical conflict will weigh on the previously waterproof Apple stock. As a company with heavy volume outside the U.S. market, it's worth noting that the strong dollar will eat into reported revenue from those overseas transactions.
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I see Apple (NASDAQ: AAPL), Conagra Brands (NYSE: CAG), and Gold Fields (NYSE: GFI) as stocks you might want to consider steering clear of this week. If you're looking for safe stocks, you aren't likely to find them in Apple, Conagra, and Gold Fields this week. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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I see Apple (NASDAQ: AAPL), Conagra Brands (NYSE: CAG), and Gold Fields (NYSE: GFI) as stocks you might want to consider steering clear of this week. Half of the 10 largest stocks to gain at least 10% last week were gold miners, and Gold Fields commands the largest market of the five stocks on that list. If you're looking for safe stocks, you aren't likely to find them in Apple, Conagra, and Gold Fields this week.
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I see Apple (NASDAQ: AAPL), Conagra Brands (NYSE: CAG), and Gold Fields (NYSE: GFI) as stocks you might want to consider steering clear of this week. Conagra Brands Instinctively, you don't want to bet against Conagra Brands. The market sees Conagra growing its revenue by less than 5% this fiscal year, with earnings per share rising even less than that.
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19084.0
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2022-10-01 00:00:00 UTC
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Try This Time-Tested Strategy When Investing in EVs
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AAPL
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https://www.nasdaq.com/articles/try-this-time-tested-strategy-when-investing-in-evs
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Dave Gilbert here, Editor of Smart Money.
There’s an old term for a still relevant and highly effective investing strategy called “picks and shovels.” It’s a perfect description for what’s going on with electric vehicles (EVs) right now.
The term goes back nearly two hundred years to when gold was discovered at Sutter’s Mill in 1848. James Marshall, who was overseeing construction of a sawmill on the property of John Sutter, saw something glimmering in the water. You can see what is believed to be this very piece of gold in the Smithsonian’s National Museum of American History.
Image: National Museum of American History
That piece of gold sparked the famous California Gold rush. As word of the discovery spread, thousands upon thousands of people rushed to California hoping to strike it rich by finding gold.
But a few smart folks took a different route to wealth: They sold basic goods to all of the miners.
A man named Sam Brannan was the first millionaire of the California Gold Rush. He made his fortune selling pots, pans, shovels, and picks to the gold hunters.
Another person whose name you may be more familiar with, Levi Strauss, started producing a new kind of durable pants for the miners. They became a huge hit, and Strauss got rich. He didn’t risk everything he had trying to find a big strike. He simply sold goods to everyone else looking for the big strike, and today his company’s famous blue jeans are still successful 169 years after he started his company.
That same strategy is worth thinking about today as automakers around the world race to build electric vehicles (EVs). It may be too early to tell which automakers will be most successful, but it’s not too early to tell what supplies they are all going to need. And in fact, prices are already going through the roof…
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Higher Prices, Shrinking Supplies
Simply put, what is the most important part of an electric vehicle?
The electricity, of course. Which means the battery.
Some of the smartest minds in the world are hard at work trying to develop next-generation battery technology that will be safer and allow batteries to both charge faster and hold the charge longer. Solid-state batteries are one of the leading technologies in development.
Automakers aren’t waiting for new batteries. They are moving full speed ahead – both industry giants and startups – to crank out EVs as quickly as possible. That in turn creates big demand for current batteries, which in turn creates high demand for the raw materials needed to make those batteries.
The picks and shovels, right?
Earlier this year, AlixPartners reported that the costs of raw materials needed for EVs soared nearly 150% since the start of the pandemic. Average raw material costs surged from $3,381 per vehicle in March of 2020 to $8,255 per vehicle in May of this year.
Leading the way are the metals needed to produce the batteries, primarily lithium, cobalt, and nickel. Lithium prices are up a stunning 10X from 2020. No wonder it is sometimes called “white gold.”
The International Energy Agency (IEA) projects a possible shortage within the next three years, a time in which the push to EVs and reduced carbon emissions is expected to accelerate. Remember, too, that lithium is used in many applications beyond EVs, like your phone, tablet, and many other battery-powered devices.
We’ve Seen This Trend Before
Eric Fry first identified this trend for his Investment Report readers nearly two years ago in the January 2021 issue. He called it The Battery Metal “Rush”…
The first major trend that could produce investment winners in 2021 is what I have been calling the Second Electric Revolution…
I’m talking about the massive worldwide transition from combustion-based modes of power generation to renewable modes that fuel an array of electric- and battery-based technologies.
To capitalize on this trend, I have recommended investing in the mining companies that are providing the metals essential to energy storage technologies…
And he added…
… investors are beginning to sense that the world’s “plentiful” supplies of battery metals like copper, nickel, and lithium may not be quite as plentiful as they seemed a few months ago.
This continues to play out. Just this week, Volkswagen AG (VWAGY) entered into a deal with Brussel’s-based Umicore SA (UMICF), which will supply battery materials to the world’s largest automaker. Volkswagen plans to build six gigafactories to produce batteries that will help the company hit its goal by 2030 that one of every two cars sold will be an EV.
Big materials demand and rising prices indicate the power of the EV megatrend. They also add uncertainty. Higher battery costs are forcing EV manufacturers to raise prices, which at some point will negatively impact consumer demand. And if shortages worsen, automakers may not be able to hit their goals in the times they have stated.
It’s still early to know which companies will ultimately emerge as the biggest EV winners. In the meantime, we can see the growing demand and rising prices of the “picks and shovels” needed to build the batteries. I think I know what Levi Strauss would say.
Sincerely,
Dave
P.S. Mysterious Alerts Signal Major Market Shift
They predicted the COVID Crash… the 2022 Bear Market… now they say something even bigger is around the corner. How do these strange alerts work? What massive event is about to take place? And most importantly, how can you prepare?
Click here to get the answers.
The post Try This Time-Tested Strategy When Investing in EVs 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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No wonder it is sometimes called “white gold.” The International Energy Agency (IEA) projects a possible shortage within the next three years, a time in which the push to EVs and reduced carbon emissions is expected to accelerate. Just this week, Volkswagen AG (VWAGY) entered into a deal with Brussel’s-based Umicore SA (UMICF), which will supply battery materials to the world’s largest automaker. Higher battery costs are forcing EV manufacturers to raise prices, which at some point will negatively impact consumer demand.
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Image: National Museum of American History That piece of gold sparked the famous California Gold rush. That in turn creates big demand for current batteries, which in turn creates high demand for the raw materials needed to make those batteries. He called it The Battery Metal “Rush”… The first major trend that could produce investment winners in 2021 is what I have been calling the Second Electric Revolution… I’m talking about the massive worldwide transition from combustion-based modes of power generation to renewable modes that fuel an array of electric- and battery-based technologies.
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That in turn creates big demand for current batteries, which in turn creates high demand for the raw materials needed to make those batteries. He called it The Battery Metal “Rush”… The first major trend that could produce investment winners in 2021 is what I have been calling the Second Electric Revolution… I’m talking about the massive worldwide transition from combustion-based modes of power generation to renewable modes that fuel an array of electric- and battery-based technologies. To capitalize on this trend, I have recommended investing in the mining companies that are providing the metals essential to energy storage technologies… And he added… … investors are beginning to sense that the world’s “plentiful” supplies of battery metals like copper, nickel, and lithium may not be quite as plentiful as they seemed a few months ago.
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There’s an old term for a still relevant and highly effective investing strategy called “picks and shovels.” It’s a perfect description for what’s going on with electric vehicles (EVs) right now. Higher Prices, Shrinking Supplies Simply put, what is the most important part of an electric vehicle? In the meantime, we can see the growing demand and rising prices of the “picks and shovels” needed to build the batteries.
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19085.0
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2022-10-01 00:00:00 UTC
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Amazon's Second Selling Bonanza of 2022: Who Benefits?
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AAPL
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https://www.nasdaq.com/articles/amazons-second-selling-bonanza-of-2022%3A-who-benefits
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nan
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nan
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Amazon is having a second Prime Day this year. In this podcast, Motley Fool senior analyst Jason Moser discusses topics including:
The behind-the-scenes planning that led up to the announcement.
Inventory clearing, and the role it may play in this event before Amazon's final holiday push.
Apple finding its headliner for next year's Super Bowl halftime show.
Plus, Motley Fool contributors Brian Stoffel and Jamie Louko engage in a bull vs. bear debate over Airbnb.
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.
Find out why Airbnb, Inc. is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
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*Stock Advisor returns as of August 17, 2022
This video was recorded on Sept. 26, 2022.
Chris Hill: Amazon has another event on the horizon and we've got a bull versus bear debate over Airbnb. Motley Fool Money starts now. I'm Chris Hill, joining me today, Motley Fool senior analyst Jason Moser. Happy Monday.
Jason Moser: Happy Monday indeed. I saw some green in the market at some point, it could be worse. It feels like a happier Monday than many we've been witnessing.
Chris Hill: Let's not jinx anything. Let's get to Amazon because this morning, Amazon announced it is holding a second Prime Day sale on Oct. 11th and 12th, let me give a hat tip to Annie Palmer, covers tech for CNBC because she had reported back in late June that Amazon had quietly contacted third-party sellers about a fall event of some sort. Seeing that story this morning, Jason, removed the suspicion I had when I saw this announcement because I thought, wait, was this just thrown together? You're going to do this in 15 days? I did wonder if that was in fact the case. This has been planned for a while. What was your reaction?
Jason Moser: Prime Day 2: E-Commerce Boogaloo, that's what I first thought. The beauty of Amazon's model is that they can do this. We've always said with Prime Day, it was just one of those things they can flip like a switch. We've talked about on the show many times before throughout the years and I believe they pointed this out a couple of shareholder letters ago the importance that third-party sellers have become in regard to Amazon's business. It accounts for so much of the overall sales now for the business. I certainly understand from the perspective of a third-party seller, they'd be all in on this. I think for Amazon, this has been a tough stretch at least with regard to the e-commerce operations. They're feeling the hangover from, I think, big pandemic tailwinds. They overbuilt.
They've got far more capacity than they need at this point. You're hearing talk about subleasing warehouse space. That's going to be something that flows through the financials for the next several quarters. This most recent quarter, they reported 7% top-line growth. This is a company that just consistently records 20, 30% revenue growth. It's not terribly surprising to see those headwinds. But really, it's going to be interesting to see how they respond to it and this feels like a sensible thing to do particularly now that the holiday season's just around the corner and we know that there's plenty of data out there that says that consumers are going to be very more thoughtful about how they spend this holiday season compared to many recent ones.
Chris Hill: Do you think part of the rationale for this from Amazon's standpoint is this enables them to select specific categories of merchandise? You really feature that up front to deal with inventory problems. I'm just thinking back over the summer, and Target wasn't the only one having inventory problems, but they were very specific about the categories that they had essentially mishandled. I'm wondering if that part of the potential upside here for Amazon is we can put stuff on fire sale and get it out of the way so that we have a better handle of our inventory for the home stretch of the holidays.
Jason Moser: Yeah, I think that's absolutely right. I think that you should expect to see that as investors and as consumers. The Prime Day to me is I don't get all that worked up over it as a consumer. It does seem to be confusing at times, really understanding exactly what you can get and how much of a deal it is. Now, with that said, they clearly get a lot of data from consumers spending and all those Prime members. I think this gives them the opportunity absolutely to liquidate inventory that just is becoming more obsolete. But also these are tremendous brand builders, I think, for the business. We've looked at Amazon today. This is not the same company it was 10 years ago. We always refer to it as the e-commerce giant, but this business is so much more now and e-commerce is just one part of the operation. You got to advertise and you've got entertainment. You got Amazon Web Services. Listen, Amazon Web Services has brought in $5.7 billion in operating income on its own last quarter alone. I think that they have a lot of different levers they can pull. This is going to be one where they can help clean up a little bit of the mess that they've been dealing with over the last several quarters, maybe put them in a little bit of a better spot to get them 2023 off on a better foot. Yeah, I think we fully should expect to see that.
Chris Hill: Last thing on Amazon before we move on. Does this also raise the bar for expectations in terms of Wall Street analysts? If you're looking at Amazon as a business, as challenged as they are, as all retailers are. You look at this and say, OK, I'm expecting more out of you in the last three months of 2022?
Jason Moser: Possibly. That's difficult to say. They are guiding for sales growth in a range of 13%-17% for this third quarter, the current quarter that we're in now. You would expect to see a nice boost from holiday season spending as well. It's really difficult to say how much this would ramp up those expectations. It feels like, no matter what company you are right now, expectations just are not really great. Shares of Amazon along with companies like Microsoft, Google, and even Apple, they're all having very tough years, and Amazon, Amazon a bit tougher than most. It's hard to say whether this really ramps up those expectations. It would make sense.
Chris Hill: Following up on last Friday's show, one of the things we've talked about, Maria Gallagher, was Apple becoming the sponsor of next year's Super Bowl halftime show. Now we know what that show is going to feature because in the interim, it was announced that Rihanna is going to be headlining the show for Apple. I always think of years ago when Alphabet was looking for a new CFO and we were talking on the show, like who are they going to get? Probably whoever they want because they are Alphabet. It's like, Jay Z's producing Apple as the sponsor, I feel like they're going to get whoever they want.
Jason Moser: Yeah. I think that'll be a good call. I personally don't really have any interest in the halftime show no matter who's playing. It's just not my bag. But I also get it. I think that she'll appeal to a very broad audience, which is great for everybody involved. This will be a tremendous brand builder, as if they need it. Apple could put a rock in box and just sell it and 3 million people would buy it without even thinking twice. But if anything, yeah, this will be something that just continues to cement their status, I think as really a modern-day entertainment company. I think that's what we're seeing with a lot of these tech companies they're developing into more. Amazon is another one. These are your modern-day entertainment companies. They're really building that out whether it's music or TV or movies, they're going to have their say. The nice thing about these businesses is that entertainment requires a lot of capital. It's not cheap. But these companies can drop tens of millions of dollars on it and you just never even notice it. That puts them in a tremendous competitive position for sure.
Chris Hill: Some people are no doubt looking forward to Prime Day 2 Oct. 11th and 12th, but there's another event in October that you're looking for even more. Shout-out to long time listener Fred Goddess of St. Charles, Missouri, because we got our invitation to the 16th annual Fredtoberfest Beer Festival on Oct. 7th featuring over 50 types of beer.
Jason Moser: I love it. It's right up my alley, Fred, and I wish I could be there. But I'm going to hoist a Schlafly in your honor, promise.
Chris Hill: Jason Moser, always great talking to you. Thanks for being here.
Jason Moser: Thank you.
Chris Hill: So what does the competitive landscape look like for Airbnb? Ricky Mulvey hosts a bull vs. bear debate over the short-term rental marketplace.
Ricky Mulvey: Welcome to Bear vs. Bull. We find a company, get some analysts, then flip a coin to see which side they'll take. Today, the company is Airbnb, the online marketplace for short-term rentals that you probably know as a verb. On the bull side, we have Jamie Louko. Jamie, good to see you.
Jamie Louko: Good to see you too, Ricky.
Ricky Mulvey: On the bear side, we have Brian Stoffel. Brian, thanks for taking the side.
Brian Stoffel: Absolutely. Thanks for giving me the opportunity.
Ricky Mulvey: This is interesting, both of you have positions in Airbnb, which means you follow the company closely, and I can't wait to hear the cases. Starting with the bull side, Jamie Louko, time is yours.
Jamie Louko: I think I got pretty lucky on this coin flip because there's a lot to like about Airbnb. As Ricky mentioned, we both own it and for good reason. First I want to talk about how popular Airbnb is. Even during the second quarter when consumers were becoming increasingly worried about a recession and rising inflation, just an uncertain economy, Airbnb saw massive activity on its platform. It reached a record number of 19 experiences booked, hitting almost 104 million in the quarter. This helped revenue soar 58% year over year. Now obviously, the company did benefit a little bit from the pent-up travel demand from COVID. That said, it was growing faster than some of its traditional hospitality rivals. Hilton Worldwide, for example, only posted 54% growth in Q2. It's taking market share and there's reason to believe that Airbnb will continue to grow faster than traditional hospitality players over the long haul. The main reason is the company is focused on innovation. Innovation is ingrained into Airbnb's culture. I think that's a major highlight because just making the consumer experience better for those customers, just makes customers want to come back and use it more. In the summer, Airbnb released categories which helps customers find unique homes easier.
That's one of Airbnb's primarily selling points. It also released AirCover for guests, which is top-to-bottom coverage for a guest to ensure that they have a great experience on the platform or they get their money back. Now, this was on top of their already announced AirCover for hosts, which provides damage and liability insurance for host in case their stays get damaged or trashed by an unruly guest. This innovation really isn't expected to stop anytime soon. They're planning on releasing another release with multiple innovations in the winter. Now, this is just in line with the company's traditional semiannual feature releases, which is just full of innovation. These innovations have paid off and it's made Airbnb one of the best hospitality companies in terms of customer satisfaction. Airbnb has a net promoter score of 31, which is far higher than some of its rivals. Vrbo, for example, has a score of negative 83. Booking Holdings has a score of 18 and Marriott has a score of just 28. It is certainly pleasing customers much more than any of its rivals. Now, Airbnb is great from a product perspective, but it's also amazing from a financial perspective. Not only is the company growing fast, but its balance sheet is nearly flawless.
It has over $8.3 billion in cash and securities with just about $2 billion in long-term debt at the end of Q2. Importantly, this is probably the thing that blows me away about Airbnb, it is gushing cash. Over the trailing 12 months, the company generated $2.9 billion in free cash flow. That's representing a margin of about 40% over the trailing 12 months. Now, what's it going to do with that cash? Personally, the best thing in my opinion is continuing to innovate, create those products to make its platform stand out compared to competitors like Vrbo or other traditional hospitality. One big concern that Brian might touch on is this regulatory risk. While I can't speak for every single local government in the world, I can speak about the effects regulation would have on my own government in Maine. I live in a very touristy environment which gets a lot of money.
Both local businesses, they get a lot of activity and governments get a lot of taxes from the tourists that come to my town every summer. Now, a lot of this is from vacationers who are using Airbnb. While regulating Airbnbs and trying to reduce the activity in some of these small tourist hotspots, that might be beneficial for the residents living there, but it also would take away significantly from the economy, at least in my local town. Again, I can't speak for every country or every city or municipality in the world or the United States, but I can say that these regulations have struggled in my hometown primarily because of the benefits that Airbnb actually brings to our town. If I could leave you guys with just one takeaway about Airbnb, it's this. Airbnb has an unrivaled focus on customer satisfaction and improving that every single day. As a result, Airbnb continues to innovate and differentiate itself and with immense and growing cash generation, the success Airbnb has seen will likely continue potentially making shareholders pretty happy over the long term.
Ricky Mulvey: Next time, we will ask you to speak on behalf of every municipality in the United States. Jamie Louko, thank you for the Bull side. Next up, we have the bear case. Brian Stoffel, five minutes is yours.
Brian Stoffel: Now, like we said, I am a shareholder of this company, but I believe in iron-manning the other side's argument, not straw-manning. That's what I'm going to try and do here. Now, the key in Jamie's argument is the network effect, which is the more hosts that are attracted to the platform, the more places there are to rent. If there's more places to rent, that will attract more travelers. If there's more travelers and I have a place that I can rent out, I'm going to go to Airbnb because they have the most potential customers. It is a virtuous cycle. What I want to say is, is that that network effect could be under assault from two different sources. That's what I want to talk about. Now the first source I want to talk about is competition. You heard Jamie say that Vrbo has a net promoter score of something like negative 83. That sounds terrible, but it's really important to understand the difference between Vrbo and Airbnb. That is that Airbnb is squarely focused on the customer experience. Sounds great, right? Well, it has to come at the expense of something. What that something is, is usually the host experience. Vrbo takes the opposite side of that coin and they are focused on making it the best experience possible for hosts.
As we can see it, in general, that has meant that more business goes to Airbnb than it does to Vrbo. That's not surprising. But it is perhaps what we're starting to see, a case of Vrbo, which is owned by Expedia, taking the Uber long game while Airbnb is taking the more "grab the profits now" short game. If enough of those hosts decide to migrate over time because Vrbo has more friendly policies than Airbnb does, and as we see more and more of these parties, more and more of these instances where places are being trashed or there are negative interactions between the host and the hostee, then I wouldn't be surprised to see some start defecting to Vrbo. The problem is, once that network effect stops being a virtuous cycle, it starts being a vicious cycle. That can make the dominoes fall quickly. That is the first threat to that network effect moat. The other threat I want to talk about is what Jamie mentioned, and that is the codes. Now, Airbnb benefits immensely from the fact that municipalities are decentralized. A decision in my small village doesn't affect where Jamie lives that much.
However, if a large city decides to adopt a framework that is then used by other cities, can be copied, a blueprint that others can use, I wouldn't be surprised to see that make a meaningful dent in Airbnb's business, either. One lurking variable we haven't talked about is that even though home prices are finally falling, we still have an immense housing shortage in the United States. One of the leading ways to deal with this, and I'm a big proponent of this, is changing our outdated codes. If we change our outdated codes, smaller spaces need to be available for living, but nobody wants those smaller spaces to be taken up by tourists. They want it to be used for people living and working in the community. Again, if a large city comes up with a blueprint that addresses this housing shortage, it could very easily be adopted by other municipalities. My large takeaway is that this network effect, while it has definitely been working well for Airbnb, could turn on a dime if Vrbo gains traction, or if a large municipality addressing the housing crisis adopts codes that could meaningfully eat into Airbnb's legal standing.
Ricky Mulvey: Brian Stoffel, thank you for the bear side. You can go on Twitter @motleyfoolmoney, we'll have a poll up where you can vote on who made the better argument. Because today's lucky winner will receive a four-night stay at a desert cabin near Reno, Nevada. This sheer vacation property is just 50 miles away from the biggest little city in the world. Take a photo at the Reno Arch or a day trip to Lake Tahoe. Just remember to invite the home's other occupant and respect our 10 p.m. curfew. Past guests have loved the natural beauty surrounding the cabin. Just keep the noise down and enjoy the windswept majesty of the Mojave Desert. You'll just love this neat and tidy home. Please keep it that way. Upon checkout, unload the dishwasher, take out the trash, and pick up your roommate's prescription. This Reno, Nevada, getaway could be yours if you win Bear vs. Bull. While this property booking is free, the prize winner will be responsible for the following costs: a $50 service fee, local and state taxes of $75, and $200 dollar cleaning fee.
Chris Hill: 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 stocks based solely on what you hear. I'm Chris Hill. Thanks for listening. We'll see you tomorrow.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Brian Stoffel has positions in Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), and Amazon. Chris Hill has positions in Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, and Target. Jamie Louko has positions in Airbnb, Inc., Amazon, and Apple. Jason Moser has positions in Alphabet (C shares), Amazon, and Apple. Ricky Mulvey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Booking Holdings, Microsoft, Target, and Twitter. The Motley Fool recommends Marriott International and Uber Technologies and recommends the following options: long January 2023 $115 calls on Marriott International, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on 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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I'm wondering if that part of the potential upside here for Amazon is we can put stuff on fire sale and get it out of the way so that we have a better handle of our inventory for the home stretch of the holidays. Personally, the best thing in my opinion is continuing to innovate, create those products to make its platform stand out compared to competitors like Vrbo or other traditional hospitality. Again, I can't speak for every country or every city or municipality in the world or the United States, but I can say that these regulations have struggled in my hometown primarily because of the benefits that Airbnb actually brings to our town.
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Chris Hill has positions in Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, and Target. The Motley Fool has positions in and recommends Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Booking Holdings, Microsoft, Target, and Twitter. The Motley Fool recommends Marriott International and Uber Technologies and recommends the following options: long January 2023 $115 calls on Marriott International, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple.
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Shares of Amazon along with companies like Microsoft, Google, and even Apple, they're all having very tough years, and Amazon, Amazon a bit tougher than most. Chris Hill has positions in Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, and Target. The Motley Fool has positions in and recommends Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Booking Holdings, Microsoft, Target, and Twitter.
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I'm Chris Hill, joining me today, Motley Fool senior analyst Jason Moser. It feels like, no matter what company you are right now, expectations just are not really great. Chris Hill: Jason Moser, always great talking to you.
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19086.0
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2022-10-01 00:00:00 UTC
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Are Dividend Stocks Right for You?
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AAPL
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https://www.nasdaq.com/articles/are-dividend-stocks-right-for-you
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The market sell-off has pushed the dividend yield of the S&P 500 from 1.2% at the start of the year to 1.7%. What's more, many individual stocks now yield their highest levels in several years. Investing in stocks that pay consistent and growing dividends is an excellent way to supplement income in retirement or boost your passive income stream. As stock prices fall and dividends stay constant, the yield goes up.
Making passive income without the need to sell stock is alluring. And it could be the right strategy for you. However, there are drawbacks to dividend stocks as well. Let's go through the pros and cons to help you align your investment planning with your risk tolerance and financial goals.
Image source: Getty Images.
Why do companies pay dividends in the first place?
The simplest reason why companies pay dividends is to return value to shareholders -- which encourages folks to hold the stock over time. To pay a stable and growing dividend, a company needs its free cash flow (FCF) and earnings to regularly exceed the dividend payout by a wide margin so that even if the performance declines, the company doesn't have to borrow money to support the dividend.
As an example, Procter & Gamble (NYSE: PG) and Coca-Cola (NYSE: KO) not only regularly generate FCF and earnings in excess of the dividend. But they also lack investment options.
In order to grow revenue, these more mature companies can complete mergers and acquisitions, raise prices, or look to sell more products. Selling more products means increasing production, building out the supply chain, and hiring more workers, which may be impractical if the demand isn't there. A company with low growth tends to buy back its stock and pay dividends because it has limited ways to deploy capital effectively. It's not an inherently bad approach; it's just the nature of how mature the company is, its market position, and its industry.
PG Free Cash Flow Per Share (Annual) data by YCharts.
The above chart shows P&G and Coke's FCF, diluted earnings per share, dividends per share, and outstanding shares over the last 20 years. You can see that earnings and FCF growth have coincided with dividend raises and a decrease in outstanding shares due to stock buybacks.
By comparison, a company like Apple pays a more modest dividend as measured by yield. But it uses the bulk of its capital to reinvest in its business and buy back its own stock. So, despite being a mature company, Apple's organic growth prospects give it better ways to boost shareholder value than growing the dividend. Buying back its own stock has also been an effective move because it has boosted earnings per share while also being an excellent investment for Apple and its market-outperforming stock.
Smaller companies that are inconsistently profitable or are in rapid growth mode tend not to pay dividends or buy back their own stock because capital is better allocated toward organic growth.
In sum, an investor can categorize a company into three basic buckets. The first is a mature company that lacks investment opportunities but generates plenty of excess FCF and earnings to support the dividend. The second is a company that has some growth opportunities but is better off blending growth with dividends or buybacks. And the third is a company that has more growth opportunities than capital, so it can't afford to allocate capital outside of its operations.
Pitfalls of some high-yield dividend stocks
In the last section, we assumed that growing FCF and earnings could support dividend raises. After all, Procter & Gamble and Coca-Cola are both Dividend Kings, which are S&P 500 components that have paid and raised their dividends for at least 50 consecutive years.
However, plenty of companies have dividend yields that are "artificially" high because their stock price, earnings, and market share are falling but they haven't yet decreased their dividend payout. But that past passive income stream does little good if the company plans on cutting its dividend soon anyway. And if capital losses exceed the dividend income, you'll still lose money overall.
Investing made simple
The beauty of today is that fractional shares, zero-cost trading, and information access make it easy to customize a portfolio that is right for you. Risk-averse investors who are more concerned with capital preservation than growth may prefer to own a Dividend King like Procter & Gamble or Coca-Cola because a growing payout makes up for their low-growth companies. By comparison, some investors may prefer to own a high-growth company with an exciting product or service suite even though earnings may be volatile and there is no dividend or buybacks.
10 stocks we like better than Procter & Gamble
When our award-winning 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 Procter & Gamble 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 August 17, 2022
Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on 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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A company with low growth tends to buy back its stock and pay dividends because it has limited ways to deploy capital effectively. Investing made simple The beauty of today is that fractional shares, zero-cost trading, and information access make it easy to customize a portfolio that is right for you. Risk-averse investors who are more concerned with capital preservation than growth may prefer to own a Dividend King like Procter & Gamble or Coca-Cola because a growing payout makes up for their low-growth companies.
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To pay a stable and growing dividend, a company needs its free cash flow (FCF) and earnings to regularly exceed the dividend payout by a wide margin so that even if the performance declines, the company doesn't have to borrow money to support the dividend. The first is a mature company that lacks investment opportunities but generates plenty of excess FCF and earnings to support the dividend. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple.
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To pay a stable and growing dividend, a company needs its free cash flow (FCF) and earnings to regularly exceed the dividend payout by a wide margin so that even if the performance declines, the company doesn't have to borrow money to support the dividend. Smaller companies that are inconsistently profitable or are in rapid growth mode tend not to pay dividends or buy back their own stock because capital is better allocated toward organic growth. However, plenty of companies have dividend yields that are "artificially" high because their stock price, earnings, and market share are falling but they haven't yet decreased their dividend payout.
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Buying back its own stock has also been an effective move because it has boosted earnings per share while also being an excellent investment for Apple and its market-outperforming stock. Risk-averse investors who are more concerned with capital preservation than growth may prefer to own a Dividend King like Procter & Gamble or Coca-Cola because a growing payout makes up for their low-growth companies. The Motley Fool has positions in and recommends Apple.
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19087.0
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2022-10-01 00:00:00 UTC
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Costco Continues to Deliver
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AAPL
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https://www.nasdaq.com/articles/costco-continues-to-deliver
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In this podcast, Motley Fool senior analysts Jason Moser and Maria Gallagher discuss:
The Fed's latest rate hike spooking investors.
Costco Wholesale delivering (yet again) in the fourth quarter.
Darden Restaurants walking a fine line with customers.
DocuSign's hiring its new CEO from Alphabet.
Amazon declaring victory with Thursday Night Football.
Motley Fool analyst Deidre Woollard and Motley Fool contributor Matt Frankel talk with Robert Leonard, host of the Millennial Investing podcast, about "house hacking."
Maria and Jason answer questions from the Fool Mailbag and share two stocks on their radar: Lululemon Athletica and Microsoft.
Got questions about stocks? Drop an email to podcasts@fool.com or call the Motley Fool Money Hotline at 703-254-1445!
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 Costco Wholesale
When our award-winning 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 Costco Wholesale 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 17, 2022
This video was recorded on September 23, 2022.
Chris Hill: We've got a new CEO, early results on Amazon's investment in the NFL and a preview of consumer spending for the holidays. Motley Fool Money starts now.
From Fool Global headquarters, this is Motley Fool Money. It's the Motley Fool Money radio show. I'm Chris Hill joining me, Motley Fool senior analysts Maria Gallagher and Jason Moser. Good to see you both.
Jason Moser: Hey.
Maria Gallagher: Nice to see you.
Chris Hill: We've got the latest headlines from Wall Street. We will dig into the Fool mailbag and as always, we've got a couple of stocks on our radar. But for the fifth time in six weeks, there was a lot of red on Wall Street. The Federal Reserve's announcement on Wednesday afternoon that interest rates will be increased by another three-quarters of a percent. Apparently surprised enough investors to cause a further drop. Jason, we were talking about this before the show. I'm a little mystified because all of the talk leading up to the announcement was that it was going to be three-quarters of a percent in terms of the hike, that's exactly what we got. I'm not sure why there was this dramatic reaction that continued throughout the rest of the week.
Jason Moser: Yeah. Certainly not a surprise in the decision. I feel like we all were expecting that. It did feel like the majority of folks felt like that would offer some certainty to the market and then the news would ultimately be received well. Clearly we got the George Costanza version, that did the opposite. Honestly, Chris, these are the times when my proclivity to expect the worst and hope for the best seems to really work out as an investor. I guess it just makes it easier to tolerate these stretches, not expecting a whole lot, at least in the near term. But I will say yet the level, the magnitude of this reaction is a bit surprising. It does really feel like it's a bit harsh, but it also does feel like we're seeing just more and more language there, expectations of recession becoming more prevalent. There's certainly data out there that tells us things are headed in that direction. Obviously, we don't really do a whole heck of a lot as far as interest rate yields go.
But when you look at the difference between the two and the 10 year, that's assignments used to at least give you certain looks into the state of the economy and whether there's optimism or pessimism. But right now, I mean, we see the gap between that two and the 10 year. That's telling us that the predominant view out there is very pessimistic. You see Goldman recently cutting their year-end S&P target. You see language like "hard landing" now. It does feel like pessimism is starting to really gin up there. I don't know that that's going to change anything in the near term. I think the good news though if you can look a little bit further down the line, is something that I tweeted yesterday. I still think about this a lot. There's data out there. There's historical data that shows us that on average, stocks perform worse in the year leading up to a recession, and during the recession.
Then down the line, things start to recover. In the two years following the recession, price returns were positive 82 percent of the time. We can debate whether we were in a recession here, the first two quarters of contraction we witnessed. I think, generally speaking, most feel like maybe that was a recession-lite, prepping us for the real deal that is expected now in 2023. Maybe this really is now we're on that pathway to that capitulation more or less, where we start to see some recovery post-recession. Because it does feel like we know a recession's inevitable. It's just a matter of when. Does feel like 2023 is setting up for that type of a call and then maybe we start to see things improve. But I know that is little solace for investors today. All we can really do is encourage you to hang in there and stock your portfolio with really good businesses. That's what we continue to focus on.
Chris Hill: Yeah, Maria, I think if there's a silver lining to Jason's point, some of the best businesses in America are looking more attractively priced now than they were, say, a year ago.
Maria Gallagher: Absolutely there. I agree with a lot of what Jason's saying. I think a lot of the reaction has been in the continued shift of the narrative of, for so long the Fed was saying, inflation is just transitory and it's going to get better. We're moving past that narrative, and Powell has just been not as optimistic. He's saying things like the housing market has to go through a correction to get supply and demand more aligned. He's definitely taking more of a pessimistic -- as Jason was saying -- standpoint. I do think that shift is much more solidified this month than it has been even the past couple of months. I think now people are hopefully more aligned in the future saying, OK, this's probably here to stay. It's been here for a while, but it's probably here to stay.
Chris Hill: Let's move on to some of the companies making headlines this week. Shares of Costco were down a bit on Friday, despite the fact that fourth-quarter profits and revenue were both higher than expected. Maria, do I have this right? Their same-store sales came in at nearly 14 percent.
Maria Gallagher: Yeah, Costco continues to deliver. I think no one's ever really surprised when Costco delivers. Their net sales were up about 15.2 percent. For the full year, they were up about 16 percent. The comp sales for the year were about 14 percent or 10 percent when adjusted for gas prices and currency. But I think one of the big stories here is the lack of membership price increases that people have been waiting to see. Generally, Costco raises prices about every 5.5 years and their last increase was in 2017. People have been expecting some news about the membership price increases and this earnings report, they said they don't have timing for it yet.
With the constraints on consumers, they don't know when that time of increasing membership prices is going to be in. A lot of people were expecting this to be when they talked about it. Especially Sam's Club recently raised prices earlier this month. They're talking about Amazon Prime is probably going to increase their prices as well for their membership options. It is going to be something that people are still looking for Costco to do in the next couple of months, next couple of quarters. I think it'll be interesting for when they plan to actually do those increases.
Chris Hill: Related to that, we're starting to get some commentary from some of the biggest retailers out there in terms of seasonal hiring. Target came out this week, said they're going to be hiring 100,000 seasonal workers. I believe it was last week, UPS came out with the same number. Walmart said they're only hiring about 40,000 seasonal workers, which is roughly a 100,000 fewer than a year ago. As we start to get more pieces of the retail puzzle filling in Maria, how do you think we're shaping up for the end of the year?
Maria Gallagher: I think it's going to be really fascinating to see. A lot of these companies I think, are waiting to see consumer buying demand in September and October leading up to maybe some more crunch time hiring in the holiday season instead of having these long planning for holiday season. But like you said, Target said, it's going to be about the same as last year. Kohl's is planning to hire about 90,000 people, about the same as last year. Michaels is hiring 15,000, which is a little less than last year, but the Walmart is the one that has the biggest change. I wonder if that's a Walmart isolated thing, since a lot of these other retailers are guiding for similar, if not slightly lowered guidance further hiring for this year. But it'll be interesting to see what the other retailers say as we get closer and closer to the holiday season.
Chris Hill: Darden Restaurants is the parent company of Olive Garden, LongHorn Steakhouse, and The Capital Grille. While the company's fine dining segment continued its comeback, overall profits and revenue in the first quarter were lower than Wall Street was hoping for, Jason.
Jason Moser: Yeah. Big picture this wasn't the most encouraging quarter. They're clearly seeing slowdowns in traffic and ultimately performance in Maine Staples like Olive Garden and LongHorn. They made up for it a little bit on the higher end, like you've mentioned. That speaks a little bit, at least to one of the advantages of a company like this with a rather broad portfolio of offerings. It feels like really one of the big themes on the call was inflation that remains a headwind for consumers, particularly in those in households making less than $50,000 a year. That was a data point they called out on the call because the Olive Garden, Cheddar's, they're more direct exposure to those guests. Olive Garden's essentially half of the business. To me, they seem to be playing a little bit of the long game here. I would encourage investors at least to try to keep this in mind. At least where consumers are concerned. They're not trying to pass on as much pricing during these inflationary times.
They're really focused on the value side of the equation for consumers, which of course is going to be tough on the financial side of the equation for this business in the near-term. To put that in context, you gave us some numbers. In the first-quarter, they call that total inflation of 9.5 percent, whereas their pricing was only about five or 6.5 percent. So they're giving up essentially 300 basis points just on inflation alone in order to continue with that value offering and keep customers feeling like they're getting something. A little bit more bang for their buck. But you look at the numbers, the comps for the quarter weren't that great Consolidated Comps, 4.2 percent, Olive Garden, just 2.3 percent, LongHorn, 4.2, and then as we said, Fine Dining 7.6. Maintain guidance for this next fiscal year, which I think is encouraging yet to feel good about that. They did feel like this quarter year that they're witnessing. They feel like they're hitting that peak. As far as inflation goes, some maybe those costs start to ease up for him here in this new fiscal year.
Chris Hill: I'm glad you mentioned the guidance because that was one of the things that caught my attention because it struck me as the move that you make. If you're a management team that believes that you can, I don't want to say finesse the numbers because it makes it sound like something shady is going on. But it struck me as a confident move by the management team. It was essentially their way of saying, we feel good about our guidance 12 months out because we feel confident in our ability to walk that fine line between, taking a little bit of a hit on the margins if we need to so that we can keep people coming in the door.
Jason Moser: I think you just hit the nail on the head there. They feel confident the decision-making and the strategy. It's not something new for them. They always have focused on the value side of things for their consumers. Again, that goes back to playing the long game. You're taking a little bit of pain in the near term, but you're seeing as being there for your most loyal customers and being there for folks who may actually feel like they're trading down a little bit to a little bit of a less expensive dining experience for a little while. Then maybe that at the end of the day, you create some interest in a new audience of diners that you didn't really have before. Again, I think it really does go back to just their consistency in their strategy and always focusing on value, making sure that they keep people coming through those doors and understanding that better times will ultimately result in better financial performance.
Chris Hill: One struggling tech stock gets a shot in the arm in the form of a new CEO, more right after the break. Stay right here. You're listening to Motley Fool Money. Welcome back to Motley Fool Money. Chris Hill here with Maria Gallagher and Jason Moser. This week, DocuSign announced it has found its next CEO. The electronic signature software maker is hiring Alphabet Executive, Allan Thygesen to move into the corner office on Oct. 10. Thygesen has been with Apple for more than a decade, most recently as the head of Google's advertising sales in North and South America. Jason shares a DocuSign down 65 percent year to date, so they need something to go. Hopefully, this is the guy to get it done.
Jason Moser: Well, a little bit of certainty in the executive suite never heard anybody and this is clearly something that they needed to take care of. It's good to see that they did. Alan joining DocuSign from Google where he served as President Americas and Global Partners. He's familiar with big dollar numbers, Chris. He led the company's more than $100 billion advertising business across North and South America. It's good to see you're getting someone in there who's familiar with big numbers and the impact they can have. But in all things considered, I think he was even with Google for almost 12 years. Obviously, very well experienced.
Management seems to be very encouraged and he tweeted earlier today, "DocuSign announced I will become their CEO on October 10th. I'm incredibly excited about the opportunity to lead a great category-defining company through the next phase of growth." With that in mind, you think about the incentives that they offer CEOs and they are healthy. I think what's interesting in this case is his bonus incentives raises performance incentives seem to be very tied ultimately to share performance. You'll see it referred to in the filing as total shareholder return. Oftentimes you'll see that tied to things like operating income or earnings per share or whatever. It can be tied to a number of different things. But this one in particular, shareholder return, the pros seem obvious. Higher returns makes shareholders happy.
It's a pretty broad metric and he can go bad at a number of different ways and he has some freedom to run the business. That's focused on something so specific as operating income or something like that. But the cons there are as if he doesn't execute or if he's a draft, a bust, so to speak, and not the right person for the job. Then you could see them trying to manufacturer share price with language and adjustments down the road. That's something to keep an eye on them. Absolutely not saying that will happen. I'm just saying that's something to keep an eye on when you look at the incentives that these new CEOs get. But encouraging news, absolutely.
Chris Hill: The NFL season has just gotten started, but Amazon has already declared itself a winner. The company announced that Amazon Prime averaged 13 million viewers for its debut livestream of Thursday Night Football. Jay Marine, Head of Amazon Sports division, called it, "a resounding success." Maria, I watched the game. I'm an Amazon shareholder. I have to say this is a bigger audience that I was expecting.
Maria Gallagher: The amount of people who watch sports is always higher than I think. But this was the most watched program of the night across broadcast and cable out delivered the number two program by 271 percent. The second most-watched program was Young Sheldon, with only 3.5 million viewers on CBS. It was the biggest three hours ever for U.S. prime sign-ups for Amazon, including comparing it to Prime Day, Cyber Monday, and Black Friday. I just think it's a really important everyone talks about streaming and sports is the last hold cable has had. You see different nights with sports. You can go to different cable options. You have to see where can I watch this game, as a lot of people apparently are doing, but people really love to watch sports. In 2021, there were about 57.5 million viewers in the U.S. watch digitalized sports at least once a month. That's anticipated to reach 90 million by 2025 63 percent of sports fans are interested in paying for all sports, and 56 percent are willing to pay more for online streaming than traditional TV. It's this last really strong frontier of must-watch, must-watch-live TV. That leagues are really cashing in on that. I don't really see that changing anytime soon, especially with the success of this night.
Chris Hill: Well, and we also this week got an announcement from Apple. Apple is going to be sponsoring the halftime show of next year's Super Bowl. Certainly, they have the money, Maria, but it does to your point, it continues this move of streaming services into sports. Apple has been doing it with Major League Baseball. Now they're sponsoring the halftime show. I'm sure this is going to fuel speculation that when the next set of rights comes up for the NFL, in particular, the prospect of Apple being one of the bidders.
Maria Gallagher: Yeah, I think we're just continuing to see this shift into what entertainment looks like and where we go for our entertainment. They didn't disclose the terms of the deal. People think it was around 50 million for the sponsoring of the Super Bowl halftime show. Apparently the last time I Apple sponsored something like this was the Met Gala in 2016 as they were trying to get their Apple Watch to be more popular, which I don't remember them doing that. I think this makes more sense than them sponsoring the Met Gala. I'd like this idea of better. I think it's just going to be especially interesting for Apple because they've tried to shy away from being advertising the way some other advertisers do. They have differentiated themselves within the space. This is them saying, no, we're going to go even more of a traditional route and take this from Pepsi. I think that'll be interesting. I also didn't know that Jay-Z and Roc Nation produced the Super Bowl halftime show. Jay-Z decides the artist of the Super Bowl halftime show, which I am going to be interested to see who it is this year.
Chris Hill: Let's move slightly away from sports, but stick with live events in this minute we have remaining. Could you see Apple+ making a move into something like the academy awards or the Emmy awards. Certainly they're competing in these events as well. But it seems like it would certainly be less expensive to get the rights for something like that than it would be for the billion dollars a year that Amazon is paying for Thursday Night Football.
Maria Gallagher: I think it's less expensive, but maybe not as lucrative in the long run because you're seeing the Oscars, the Tony's, the Emmy's had about 6 million viewers, which is a new low. They're hitting record lows for the amount of people watching their shows, as opposed to record highs in sports. I just think that trend is going to probably continue. People don't care about them as much as they used to.
Chris Hill: Alright, Maria Gallagher, Jason Moser. We will see you a little bit later in the show, but up next, Deidre Woollard and Matt Frankel are going to dig into the world of house hacking. Details next. Stay right here. You're listening to Motley Fool Money.
Welcome back to Motley Fool Money. I'm Chris Hill. As the housing market tightens up, more people are looking into house hacking. You may already be familiar with Robert Leonard from his work as host of the Millennial Investing Podcast. Matt Frankel and Deidre Woollard caught up with Robert to talk about his brand new book, The Everything Guide to House Hacking.
Matt Frankel: What have you learned along the way? I know that's a really broad question, but what did you get wrong at first that you're getting right in the duplex you live in now?
Robert Leonard: One of the other things I want to mention before I answer that directly is that a lot of times people think of house hacking as this lower-level type of living, I guess, it's the best way I can explain it. It is like, it's not as nice as having a single-family house. But as you mentioned at the beginning, I host a podcast. I've had the opportunity to talk to a lot of house hackers. I talked to somebody. He owns a multi-million dollar property in Arizona in Phoenix, and he has what's called an ADU in the backyard. He lives in a very nice almost mansion type property and rents out the ADU on Airbnb in a short term rental. They don't live together, they don't share space. They just happen to be on the same property and he's reducing his mortgage significantly because the short term rental is still profitable. It doesn't have to be, you're just graduating college type strategy.
This can be your longer strategy that can be a lot more comfortable. But in terms of the mistakes that I've made, I've done a single-family rent by the room house hack. I've done what's called a live-in flip, which I actually didn't mention before. But you could do a live-in flip, which is a type of house hack as well. I've done that. Then now I'm doing a multifamily house hacking. What I got wrong, at first, was that I didn't really treat it serious or a business because I didn't realize that I was a real estate investor at the time. I didn't have a lease in place. I didn't really screen the tenant appropriately. It was just a guy that I knew from the gym, and we had similar interests, and so I thought that would be great. I didn't check his background. I didn't do any credit scores. I didn't write up a normal lease. I collected rent in cash. I basically made all of the mistakes that you could. Thankfully, he ended up being great, paid rent on time, and it worked out OK for me. But it could have very easily gone the wrong way.
Deidre Woollard: I want to talk a little bit about how you choose the house hack. Obviously, when you're looking for a house, there are certain things that you are looking for as someone who wants to live in the house. Do you feel like there's some different considerations you should have if you're looking at the house from a perspective of a house hack?
Robert Leonard: I think there's three things. One, you need to look at from your perspective and maybe your significant other or anybody else that's involved in the decision. Are you and your parties that are involved, are you OK with this property? Do you like? It is where you want it to be? Etc. Does it fit your criteria? Second thing is, what tenants is this going to bring for you to manage and live with? Then the third thing is, does this fit the financial profile of what I want for a property? The first thing is location. Is it in a location you're willing to live in? Is it the type of property you will want to live in? Does it have a garage if you want a garage, driveway, yard, etc. Whatever that might look like for you. You need to make sure it works for you. The second thing is the tenant profile. Different types of properties are going to bring in a different type of tenant.
One isn't necessarily better than the other. It's just they're different. If you buy a four-plex, which is more similar to an apartment building, or even an up-down duplex rather than a side-by-side duplex, that's going to be a different tenant, especially if it's in a major metro or pretty close to a city. Those are going to be more apartment-like tenants versus if you buy a duplex in a little bit more of a rural area that's on five acres of land. Or if you did a luxury property where you have an ADU in the back and you house hack through a short-term rental. Those are all going to be different types of tenant. Again, one isn't better than the other. You just have to decide if those type of tenants is what you want to manage and who you're willing to live with. Then the third thing, of course, is, if you're going to be making these types of sacrifices that it takes to house hack, you want to make sure that it's providing the financial returns that you want it to be. That doesn't necessarily have to be living for free. You don't have to necessarily live for free. Let's just say you're living in an area where your rent would be $2,000 a month. But if you house hack, you can only pay $500 or $750 a month. You're like, I'm still paying $750 a month to live. I'm not living for free. But the alternative is that I would have to pay $2,000 if I wasn't house hacking. I'm saving almost $1,300 a month. So you just have to find the sweet spot of all of these three different things that I think people should consider when they're house hacking.
Matt Frankel: You brought up tenants. I want to talk about that for a second. Last time I spoke with you, I mentioned that my biggest mistake was that I didn't screen my first tenants. I ended up with a tenant in my first duplex who ended up going to jail after a week, definitely a situation I wanted to avoid. We ended up with two or three more so-so tenants in that place. My wife eventually said if we ever do this again buy a multi-unit property, we're going to hire a property manager. I don't even want the people to know that we own the house. I want them to think we're tenants, just like us. Does it ever make sense financially to hire a property manager for a house hack? Is that a thing? Do a lot of people do it?
Robert Leonard: I wouldn't say that a lot of people do it, but it's definitely something that you can do. Mostly from the perspective of you just wanting it to be passive. You could do it from a couple of perspectives. One, you want it to be passive. Two, you want to protect your identity in a sense of protect your situation, like you said. Three, going back to what I said earlier, is it can be a really good opportunity for you to learn how to work with a property manager, so that when you scale into a future property, future rentals, you already know how to work with a property manager.
You might already have a property manager that you're willing to continue to work with if you continue to buy rentals or if not, if you go with a different property manager, you at least know how to work with and manage a property manager. I wouldn't say it's the most common thing, but it definitely it's possible. From a financial perspective, it's usually not the best because you're going to pay 10 percent of usually give or take, maybe a little bit more on your rent. If you're going to collect a $1,000 a month in rent, you're going to pay a $100 a month for your property manager, give or take. Financially it's not necessarily the best, but it does have its benefits for sure.
Deidre Woollard: Do you think that the fear of tenants or fear of becoming a landlord is the major block for people doing a house hack, or are there other things that you think keep people from doing it, because it seems like such a perfect solution.
Robert Leonard: I don't think that's the major problem. I do think it is a problem, but I don't think it's the major problem. I think the major problem is that people are like, I don't want to live with somebody else. I don't want to live next to somebody else. I don't want to be this close to somebody, etc. I think in my opinion, people that think like that. I understand it's not for everybody. I don't think house hacking is for everybody, but I think the people that just stop there are not really giving it enough of a chance. They're not really thinking critically, because there is probably an opportunity for you to make it a really good situation.
Like I said, at least where I live, and I've seen this across the country in many spots, it's not everywhere, but in a lot of spots. You can buy a beautiful duplex on a nice piece of land, and it's absolutely a beautiful property. You are technically connected to somebody, but it's really not that much different than a single-family home. I think a lot of times people might just get stuck that they're living next to somebody. But definitely there is certainly a piece where people are concerned that they're going to have to be landlords. But like Matt said, you could hire a property manager and that could help with that.
Chris Hill: If you want to learn more, pick up a copy of Robert Leonard's new book, The Everything Guide to House Hacking. Coming up after the break, Jason Moser and Maria Gallagher return. We're going to dip into the Fool mailbag and they got 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 stocks based solely on what you hear. Welcome back to Motley Fool Money, Chris Hill here once again with Maria Gallagher and Jason Moser. Our email address is podcasts@fool.com. Make sure you put an s on there, podcasts@fool.com. I've got a question from Drew in Virginia who writes, I'm ready for September to be over so we can start earnings season in October. I think we can all identify with that sentiment. He goes on to write, "is there a company in particular you're looking forward to hearing from this next earnings season?" Jason, I'll start with you, anyone in particular. I mean, we're always curious but is there one in particular?
Jason Moser: Always curious. Yeah. I think one that stands out, I think PayPal, just obviously a business that we follow very closely here and one that has been going through some challenging stretches here in it. There was a recent Investor Day presentation, CEO Dan Schulman said that you felt like they were having a very good, solid quarter right now to revenues were coming in where they're expected in line with their guidance and felt like EPS was coming out a little bit stronger than they had anticipated. There was language in the call that it sounded like they are expecting an encouraging back half of the year. Now I'm sure they're dealing with economic turbulence as everyone is, but maybe this speaks to their ability to get guidance back in order. Remember that was one of their priorities they laid out earlier on in the beginning of the year was they wanted to get back to forecasting this business a bit more appropriately as compared to the last couple of years with all of the impacts of what's going on with the pandemic.
That's encouraging to me. I mean, I think you've got some things on the horizon, you get the Venmo integration on Amazon now as a payment option, I think that's very encouraging. You got continued impressive growth with Braintree, which that's essentially a payments platform for big merchant customers and serves like Uber and DoorDash and Airbnb. Then they are going to be taking out at least $900 million in cost this year from the business aiming for $1.3 billion next year. Very much aligned with that theme we've been talking about over the last several weeks in efficiency. Business is becoming more efficient and PayPal is no exception there. Yes one, I always enjoy following. I'm encouraged by their progress. But we'll hold them to it. They're not through it yet and we're going to hold them to it and make sure they finish this year up strong.
Chris Hill: What about you, Maria?
Maria Gallagher: I have a couple of themes that I'm excited to look at. I think consumer spending is something that's super important. Looking at things like Walmart, Costco, Target, and then also companies like Lululemon, Tiffany's, getting the gamut of how consumers are spending and then, as well as how businesses are spending. Thinking things like social media. Looking at [Meta's] Facebook, Twitter, Pinterest, seeing where advertisers are spending their dollars and seeing how those advertisers are feeling compared to last quarter. I think those are two areas that I'm really excited to look at.
Chris Hill: Got a question from Kevin in Maryland. He writes, Crate & Barrel is hiring a Chief Metaverse Officer, is this a sign of a market top for the metaverse or does this actually seem like a smart move? Jason, I'll go to you first. It's not just Crate & Barrel that's hiring for this brand new position, Chief Metaverse Officer. Procter & Gamble is doing this, LVMH. There are several companies not named meta platforms that are hiring for a Chief Metaverse Officer, what do you think?
Jason Moser: Yeah. They'll preface this. Obviously, some folks know, I mean, one of the services I run here at the Fool is focused on immersive technology, augmented virtual reality. The metaverse is clearly a part of that. Generally speaking, obviously, I'm bullish on that stuff, on that technology. I think overall I'm bullish on the metaverse. But I will say this feels like the early stages of every company under the sun declaring themselves sustainable and in green. It's the concept is you are right now and that just snowballs are more and more companies do it well, Procter & Gamble is doing well then, of course, we need to too. At some point it runs the risk of becoming extremely watered down and trying to understand exactly what companies are doing with these investments.
I'm not saying they won't pan out. It's just you need to make sure you tried to connect the dots there, I guess is what I'm saying. That for me is really ultimately the biggest question mark right now in regard to the metaverse in really a lot of other statements that Zuckerberg makes. They make very bold statements that having a metaverse ultimately makes everything better, more connected. But they don't really do a great job of connecting the dots yet to make us understand more why. They just say connection, it's good. Well, we've seen cases where maybe connection isn't as good as they think it is. My bet is we'll likely continue to see the goalposts moved and actually defining what the metaverse is. Still feels like it's a squishy concept that I'm sure a lot of these seasoned executives who are Chris, I will add older than you and me, that they might have a little bit of a tougher time wrapping their minds around it as well. So let's give this thing some time to play out.
Chris Hill: What do you think, Maria?
Maria Gallagher: I would say I'm just a little confused why companies with I think, like Jason was saying, with augmented reality, virtual reality, I think that that makes more sense to me. I understand having that need within a furniture business like a Wayfair or Crate & Barrel or Sephora with virtual trials for makeup and stuff. I think that there's an interesting element for the virtual world with these companies. But I don't understand how it plays into the metaverse because isn't the metaverse a second? I always just imagine the metaverse is just a better Sims and so I don't really understand how Crate & Barrel is going to profit from that. I would just say I'm a little confused by it and I haven't been able to find like Jason saying it doesn't mean that much. I've haven't been able to find a good explanation of why a company it's got hiring a Chief Metaverse Officer or what that means.
Chris Hill: Jason, you used the word bet, which reminded me, I'm surprised that we're not hearing that casinos are hiring for chief. Because I feel like that's going to be one of the first applications. Like if I could place a wager on who's going to succeed first in the metaverse, I'd put some money on the casinos because it seems like that maybe that's just a degenerate gambler in me I don't think that has possibilities more than say, Crate & Barrel.
Jason Moser: I do agree. I think it does feel like it is specific to the company that's doing it. In some companies, it seems to make more sense than in others. I don't know who really wants to go to the metaverse and do their laundry and brush their teeth so you wonder, is P&G really making the wise investment dollars there? But by the same token, I mean, you're also looking at something whereas the metaverse grows out, it becomes more and more a world where people frequent. I mean, there will be, I'm sure, brand placement opportunities and things like that. Let's face it, there is a market for virtual goods. I mean, I don't have all that much interest in them, but it doesn't mean that a lot of other people don't. I mean, we clearly know that they do. Again, I think you're going to see the goalpost continue to move, but it does really feel like it's going to be specific to the company itself as to the benefits they really get from those investments.
Chris Hill: All right, keep the emails coming. You can also call the Motley Fool Money hotline (703)254-1445. Leave a question on the voice mail and you may end up hearing your voice on the show, (703)254-1445. Let's go to our man behind the glass, Rick Engdahl, it's time for Radar Stocks. He's going to hit you with a question, Maria you're up first, what's on your radar this week?
Maria Gallagher: What's on my radar this week is Lululemon. I've been spending some time looking a little bit more at retail, like I was saying. Last quarter, the revenue was up 29 percent, their comp sales were up 23 percent. They have a pretty strong and enduring brand. I want to spend more time looking at them and thinking about how a potential recessionary environment will impact them since they are at a much higher price point than some of the other retailers I've spent my time with. But I do think that the hold their brand has is pretty strong. I don't love the Mirror acquisition, but there are other elements of the company that I think are pretty interesting to look at.
Chris Hill: Rick, question about Lululemon.
Rick Engdahl: Yeah, I'm personally all of my exercise has moved to home exercise, including a lot of work that I do and the VR and I'm just wondering if Lululemon has a Chief Metaverse Officer lined up?
Maria Gallagher: Honestly, I wouldn't be surprised if they got one. Between Mirror because Mirror is everyone working out in front of a Mirror so they already halfway there.
Chris Hill: Jason Moser, what's on your radar?
Jason Moser: Yeah, I know these are difficult times for investors and often you feels like you just want to curl up and then not do anything at all. Sometimes it's the best course of action. But, if you are interested in buying stocks focused on some of these big winners, the big obvious suspects out there Microsoft is one of those ticker MSFT just wrapped up a very strong fiscal year. Microsoft Cloud surpassed $25 billion in quarterly revenue for the first time, which was up 33 percent. Obviously, they're going to play a key role in Netflix's new ad related tier, which I think is interesting and we're watching to see what the Activision Blizzard deal, how that shakes out.
The Teams buildout continues. Management is leaving no stone unturned there and they keep saying on the calls they are all in on Teams. I think that's going to be just a more productive part of the business as well. They are even making it happen with LinkedIn, too, Chris. LinkedIn, Talent Solutions surpassed $6 billion in revenue over the past 12 months. That was up 39 percent from a year ago. LinkedIn marketing solutions surpassed $5 billion in annual revenue for the first time. This is just another business that the reaches us all in so many ways shares down around 29 percent this year. They generated $65 billion in free cash flow this year, Chris, that values it at around 27.5 times. It's worth a look.
Chris Hill: Rick's question about Microsoft.
Rick Engdahl: Years ago when I was teaching my son to invest, he chose Microsoft as a company because he found out that they owned Minecraft. What else does Microsoft own that I have no idea that they own?
Chris Hill: We'll talk about it in the metaverse, meet me after the show in the metaverse, we'll talk it over. What do you want to add to your watch list, Rick?
Rick Engdahl: Well, I think going to have to go with my son in Microsoft here. It worked for him.
Chris Hill: Never go against the family. Maria Gallagher, Jason Moser. Thanks so much for being here.
Maria Gallagher: Thanks for having us.
Chris Hill: That's going to do it for this week's Motley Fool Money radio show. The show is mixed by Rick Engdahl. I'm Chris Hill. Thanks for listening. We'll see you next time.
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. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Chris Hill has positions in Activision Blizzard, Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Costco Wholesale, DocuSign, Microsoft, PepsiCo Inc., Pinterest, and Target. Jason Moser has positions in Alphabet (C shares), Amazon, Apple, DocuSign, and Wayfair. Maria Gallagher has positions in Pinterest. Matthew Frankel, CFP® has positions in Amazon, Goldman Sachs, and Pinterest. Rick Engdahl has positions in Activision Blizzard, Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Costco Wholesale, DocuSign, Meta Platforms, Inc., Microsoft, Netflix, Pinterest, and Target. The Motley Fool has positions in and recommends Activision Blizzard, Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Costco Wholesale, DocuSign, Goldman Sachs, Lululemon Athletica, Meta Platforms, Inc., Microsoft, Netflix, Pinterest, Target, Twitter, and Walmart Inc. The Motley Fool recommends Wayfair and recommends the following options: long January 2024 $60 calls on DocuSign, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on 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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In this podcast, Motley Fool senior analysts Jason Moser and Maria Gallagher discuss: The Fed's latest rate hike spooking investors. Again, I think it really does go back to just their consistency in their strategy and always focusing on value, making sure that they keep people coming through those doors and understanding that better times will ultimately result in better financial performance. Robert Leonard: One of the other things I want to mention before I answer that directly is that a lot of times people think of house hacking as this lower-level type of living, I guess, it's the best way I can explain it.
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Motley Fool analyst Deidre Woollard and Motley Fool contributor Matt Frankel talk with Robert Leonard, host of the Millennial Investing podcast, about "house hacking." Rick Engdahl has positions in Activision Blizzard, Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Costco Wholesale, DocuSign, Meta Platforms, Inc., Microsoft, Netflix, Pinterest, and Target. The Motley Fool has positions in and recommends Activision Blizzard, Airbnb, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Costco Wholesale, DocuSign, Goldman Sachs, Lululemon Athletica, Meta Platforms, Inc., Microsoft, Netflix, Pinterest, Target, Twitter, and Walmart Inc.
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I'm Chris Hill joining me, Motley Fool senior analysts Maria Gallagher and Jason Moser. Welcome back to Motley Fool Money, Chris Hill here once again with Maria Gallagher and Jason Moser. I mean, I don't have all that much interest in them, but it doesn't mean that a lot of other people don't.
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They don't live together, they don't share space. I don't even want the people to know that we own the house. I mean, I don't have all that much interest in them, but it doesn't mean that a lot of other people don't.
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2022-10-01 00:00:00 UTC
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Dealing With Stock Market Pessimism
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In this podcast, Motley Fool senior analyst Asit Sharma discusses:
The S&P 500 hitting a new low for the year.
Seeking out companies with "fortress balance sheets."
A listener's question about Mullen Automotive.
Learning from mistakes and staying in the game.
Economists and personal finance authors have very different opinions on topics like savings and investing. Motley Fool host Alison Southwick and and Motley Fool personal finance expert Robert Brokamp break down the differences and share their own thoughts.
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 September 27, 2022.
Chris Hill: Whatever you're going through as an investor, we've been there, too. One of the tricks is to just keep going. Motley Fool Money starts now. I'm Chris Hill. Joining me today, Motley Fool Senior Analyst Asit Sharma. Thanks for being here.
Asit Sharma: Chris, thank you for having me.
Chris Hill: It was looking pretty good for a few minutes this morning right after the market opened and everything was in the green, and here we are, just a few hours later, and the headline is the S&P 500 hitting a new low for the year. Down just about 25% from its high for the year, and you and I were chatting before we started recording. I'll return to a theme I'd been hitting recently. I don't want to say it's at an all-time high because I don't have that level of perspective, but boy, pessimism really is running high right now.
Asit Sharma: Pessimism is through the roof. It's a contrary indicator for many investors. Times of maximum pessimism often tend to be a good time to invest if you stretch your time horizon out. It's so funny, Chris, what you mentioned about, those few minutes it looked good. In this day and age, that's all you get, so I live in the moment. If I see some green, I celebrate a little bit because you come back to your chair after a cup of coffee, it's going to be in the red. But yeah, it's a tough market and we've got so many factors that have been pushing the market down, and we've got some new ones on top of that. Just over the last two weeks, I was looking at the strength of the US dollar. It's gained about 6% on the euro, just in the last two weeks. That's a huge move for a currency.
The greenback is so strong at this point that it's worrying lots of people who follow the market, because so many of our biggest and baddest companies have sales all around the world. Every time the dollar creeps up, it affects their sales, pushes down that top line in foreign currency translation, which means that someone somewhere is calculating what the S&P 500 earnings are going to look like as a group next quarter, which breeds further pessimism. [laughs] We've got the never-ending supply of factors pushing down the market.
Chris Hill: But at some point Asit, look, there's a tendency to look at the market writ large, and if you want to look at large categories of stocks, a lot of oxygen has been expended on growth stocks as a category, and we've heard the refrain over and over that even though some of these stocks have been cut in half, they're still not technically all that cheap. Yet you look at some of the biggest companies out there, and they're getting to that price point where it's like, if you're going to sell me Apple at this price, or Microsoft, or Alphabet at its current price, at some part, some of these big tech companies start to look even more attractive.
Asit Sharma: That's very true. The smaller companies, I've been investing in them, you can calculate what their cash flows will look like over the next few years, and see if they've got some insulation from inflation and higher interest rates, etc. These biggest companies that have been pushing the market forward for several years, it's a small group. The usual suspects that have some ungodly percentage of the total S&P 500 in any given your 10-20% among big tech, these are the companies that have fortress balance sheets, so they're going to be OK no matter what. The worst-case scenario, they just redirect their investments into a new space. Next year, they've got the wherewithal to cope with just about any scenario. It behooves us as investors not to try to be precision experts here. I tend to follow my gut when it comes to these big-picture questions. Like, should I buy an Apple, or an Amazon, or a Google, or maybe a Netflix which has suffered a little more and has less of a fortress balance sheet. But you get the picture. Should I buy that stock now? After a while, your gut becomes a louder and louder voice in your decision making. You still bring a little bit of number crunching to the equation. But I think for investors who have capital and are looking for high-quality ideas to be repetitive here to a good degree, it's not a bad time to put some money to work.
Chris Hill: Our email address is podcasts@fool.com. I've got a question from Lisa, who writes, I know not much about investing, so my wife and I selected one stock we heard about, and thought would learn from doing this. We didn't invest money that we could not afford to lose. We've resolved to hold on for the long term and not be emotional investors, but I have to admit to being a bit horrified at the stock's lack of performance. Even in this disappointing market, it is currently at $0.37. The stock is Mullen Automotive. My wife had been seeing it mentioned a lot on Twitter, so we began looking into it. Did we fall for a silly investment? Is Mullen considered a meme stock? Thank you for the question. Sorry for the experience, although I'm reminded of one of my favorite quotes, which is, "when we don't get what we want, we get experience." I'd never heard of Mullen Automotive, Asit. I literally went onto Google and just typed in, is Mullen Automotive a meme stock? I don't know that it necessarily is, although it is a penny stock, and it has been for a while now. What do you think in terms of this question?
Asit Sharma: It's a great question, and I side with you on what experience can teach us. All of us come at investing from different paths. I actually started out in my investing journey by doing some trading and lost some money really quickly. Hearing about a stock on Twitter when you're new to investing might be the first entry that you have into understanding how to invest, how to research stocks, and how to learn about them. I didn't know anything about Mullen Automotive. I don't know either fits a meme stock or not. But it has an interesting characteristic, in that it seems to have little or no revenue. This reminds me of a great lesson from Peter Lynch. You can Google this. Peter Lynch has a wonderful speech in which he talks about the 10 investing myths that an investor should be conversant with. One of the last ones is about falling for long shots. He says that in his career, he has identified numerous stocks that made money that he thought had very little potential. He knew they were mispriced and had solid prospects, and they turn out to be multibaggers over time. He'd look around and see that several of his stock picks were suddenly doing quite well. Then he talked about his track record with what he calls long shots. He says I've never made money on a long shot. Now, here's the distinction.
Peter Lynch defines a long shot as a company, they used to call them to whisper stocks he says, that doesn't have any revenue. It's got a lot of sizzle, and a lot of excitement. Twitter seems like the perfect place to drum up excitement about a stock that might not have solid revenues on the ground. But he says that those have been some of his worst investing mistakes. This is one thing we can all learn from. When someone presents you with an idea around a company that doesn't yet have any appreciable revenue, be very careful. It doesn't mean that you can't make money on that, but those opportunities are few and very far between. That's one thing we can learn. The second is, this reader is doing some things right. They didn't invest any money that they could afford to lose. They resolved to hold for the long-term. I would say that works when you're holding onto quality stocks, or companies that have very solid financials. But you've got two out of three things that are pretty decent right here. Maybe if you'd been able to find a stock which had some better forward prospects, you wouldn't be, I guess, horrified is the term that the reader wrote. All sympathy with that, but to say, look, I've been there before. This was my experience too. I just had a disastrous beginning of my investing career, but it motivated me to learn some more, and I hope it does the same for these two. What do you think, Chris?
Chris Hill: Now I agree with that. Obviously, everyone should manage their money how they want to manage their money. But I was telling someone earlier this week about why I continue to hold my shares of Under Armour, which is the biggest loser in my portfolio. It's because it's a tiny fraction of my portfolio, so in that sense, the money itself is not really consequential. What's of greater value to me is the lessons I learned in buying Under Armour in the first place, the mistakes I made. Maybe Mullen Automotive, could be the same for these folks and again, if you need the money, you want to do some tax-loss harvesting, that sort of thing. Great, by all means do that. But in my own personal life, I find it helpful to just have that little reminder in my portfolio so that every time I look at my portfolio, on great days, my head doesn't get too big. I've always got that reminder of the mistakes I made.
Asit Sharma: Yeah, I think that's a great point and we should say neither of us has really researched the company so maybe it will return as an investment. Peter Lynch says, look, the odds are against it in a case like this, I did look at the stock chart. I think it's fallen from 10 or 12 bucks all the way down to these $0.37 in a short amount of time. But on the other hand, if you can remove any of the new emotional baggage and not let that be baggage that sticks around, this could be the beginning of a great journey and other great thing I will say this person is doing is listening to Chris Hill on a regular basis and getting some great education about stocks. For sure, look for strong businesses, businesses that you understand. Take some time before you buy those companies just to make sure you're comfortable with the basic investment thesis. You don't have to be a financial whiz to do that. Many times we do that right here at the Motley Fool for you if you're a subscriber to our services and spread that love around, we always say hold at least 25 stocks if you can, over a period of at least five years. If you use a fractional share broker, then you can even put a small amount of money to work and just spread it across 25 stocks. Keep going. Don't let this be the last investment we're rooting for you. Again, as we said at the beginning of this show, it's not a bad time to put some money to work.
Chris Hill: Keep the emails coming podcasts@fool.com, or you can call the Motley Fool Money hotlines 703-254-1445. That's 703-254-1445. Leave us a question on the voice mail. Asit Sharma, always great talking to you. Thanks for being here.
Asit Sharma: Thanks so much, Chris. Always a pleasure.
Chris Hill: When it comes to questions like how much should you save? When should you invest in the stock market? It turns out that economists and personal finance authors have very different answers. Alison Southwick and Robert Brokamp break down the differences.
Alison Southwick: According to the U.S. Bureau of Labor Statistics, there are almost 16,000 economists in America. Teaching classes, analyzing data, publishing studies, and trying to explain the distribution, and consumption of wealth. But when it comes to where Americans go to learn about money, do they turn to economists? Not so much? Take a look at any list of the most popular personal finance books and few, if any, will have been written by an economist. You might wonder, is the advice offered by the typical personal finance guru better? Or should more Americans be looking to the Ivory Tower for guidance? Well, we won't be able to settle that debate in this episode, but we do have some thoughts.
Robert Brokamp: Indeed we do, but we weren't the first people to have these thoughts. Because in fact, the idea for this segment comes from a recently published academic paper entitled Popular Personal Finance Advice Versus the Professors. It was written by Dr. James Choi, who is a professor of finance at Yale. Here's what Dr. Choi did. He read through the 50 most popular personal finance books as ranked by goodreads.com as of 2019 and compared the advice offered in those books to what is generally recommended by academic economic theory. Obviously, this required a good bit of simplification. Not all personal finance authors agree on everything and neither do all economists. But we chose five financial questions that are addressed in Dr. Choi's paper and we weigh in on whether we think the writers or the economists are offering the best answers.
Alison Southwick: All right. The first contentious question is, how much should a household be saving? Bro, what did the economists have to say about this?
Robert Brokamp: Well, in the world of economics, the foundational theory that explains spending and saving is called the lifecycle hypothesis, and it's been around, since, around the 1950s. The basic idea is that people want a relatively consistent cost of living. They don't want their expenses and thus their lifestyle to go significantly up or down from year to year or even over the course of their lives. When you're young and you don't have much money, don't even bother trying to save for the future. In fact, feel free to take on some debt because you know, higher earning years are ahead of you. But then as your income rises, you pay off the debt and you gradually increase your savings rate, but you actually have to do that. You can't use the raises to increase the cost of your lifestyle. Eventually, you have enough savings so that you can maintain your lifestyle without working, which of course is known as retirement.
Alison Southwick: Then what do the personal finance authors have to say?
Robert Brokamp: They say start saving as soon as possible and don't deviate, always be saving and they'll often rollout illustrations showing that someone who started saving at age 25 and stopped at age 35 would have just about the same amount in retirement as someone who waited until age 35 to start saving and saved for the next 30 years. That's the power of compound interest and starting early.
Alison Southwick: All right, Bro, where do you come down on this question?
Robert Brokamp: Well, I have to come down on the side of the personal finance authors for this one, though, in full recognition that it can be difficult to save when you're just starting out. You might have school loans trying to buy a house, start a family, or pay for child care. But the benefits of investing even small amounts that have decades to grow, they're just too good to pass up. Plus, many studies have found that people actually retire sooner than they expect. It's better to save while you can, because you just don't know how long your career is going to be.
Alison Southwick: The next question of contention is, what should you do with your money in retirement? Let's start with the economists. What do they have to say is the best path to take?
Robert Brokamp: Part of that whole lifecycle hypothesis is that you build up your savings while you're working, but then when you retire, you actually spend down your assets as you age rather than trying to maintain your net worth. The best way to invest your money in retirement, according to economists, is to put most or maybe all of your wealth into an immediate annuity, which provides a lifetime of guaranteed income. It's like creating your own pension.
Alison Southwick: What did the personal finance authors have to say?
Robert Brokamp: Well, you're not going to find too many of them who love annuities, even these plain vanilla annuities that provide lifetime income. Instead, most will recommend that you just keep investing in cash, bonds, and stocks like you did while you were working. But you choose a historically safe withdrawal rate and not surprisingly, four percent was the rate most recommended by the books that Dr. Choi surveyed in his study.
Alison Southwick: Bro what do you think?
Robert Brokamp: I say it's a tie, although if I had to choose a side, I'd guess I'd go with the authors. If you're listening to this podcast, you're likely comfortable with investing and dealing with the ups and downs and uncertainty of living of a portfolio. But studies do indicate that middle- to higher-wealth retirees could spend more than they do. But they're hesitant, perhaps because of the uncertainty of those portfolio returns. In other words, they're not spending down their assets and perhaps not enjoying themselves as much as they could. One way to alleviate that uncertainty is to buy an annuity. I do think immediate income annuities make a lot of sense for a portion of the bond side of your portfolio to retirement. With interest rates higher nowadays, payouts are higher. Depending on your age and gender, you could get $7,000 to $8,000 a year from investing $100,000 into a single-premium immediate annuity. As confirmed by a recent study by David Blanchett and Michael Finke, retirees with higher levels of lifelong guaranteed income are more comfortable spending their money.
Alison Southwick: It's time to move on to our third contentious question, which is, which debts should you pay down first? What did the economist say?
Robert Brokamp: Well, this one is pretty straightforward. The economists say basically start by eliminating the debt with the highest interest rate and then you move on to the debt with the next highest interest rate, and so on.
Alison Southwick: I guess the math just works out there.
Robert Brokamp: Exactly.
Alison Southwick: All right. What do the personal finance writers say?
Robert Brokamp: Well, some, not all, but some suggests that you should instead eliminate the debt with the smallest balance first. This has come to be known as the debt snowball method. Once you pay off that balance, that sense of accomplishment, you feel by eliminating that debt, inspire you to continue making progress and eliminate the rest of your debt.
Alison Southwick: Bro, what do you think?
Robert Brokamp: As you said, the math is clear with the economists here. It just makes more sense to pay off a debt charging 20% interest rate before paying off a debt charging 10-15%. However, I mean, you do have to know yourself. If eliminating the smaller debt will be more motivating for you, then that's the route to take. In fact, some studies have found that people who follow this debt snowball method have been successful.
Alison Southwick: Wait who conducted those studies? Was it economists?
Robert Brokamp: That's a thing about all these studies. All the studies are done by the economists, but yes.
Alison Southwick: Question No. 4. How much should you invest in the stock market? What do the economists have to say?
Robert Brokamp: Well, so unlike what some might think is the conventional wisdom, some economists believe that the stock market actually gets riskier the longer your time frame. That's because they think of risk more in terms of predictability than year-to-year volatility. Think of it this way, let's say you have a sum of money, and you want to invest it for a retirement that is 30 years away. If you invest it in the stock market, how much will it be worth in 30 years? The answer is, who knows? It's impossible to predict. You can use historical returns and run some calculations, but there's no guarantee the future will look like the past. However, if you invest that money in a 30-year Treasury bond, you'll know exactly how much interest you'll receive each year and how much the bond will be worth in 30 years.
In that way, the bond is much less risky. Just very generally speaking, I would say that economists tend to lean toward more conservative asset allocations. That said, they still generally believe that younger workers should be mostly in stocks, but that's because they factor in human capital, which is your ability to earn an income. When you're young, your human capital is like an enormous bond that is going to pay instead of interest payments for years, it's going to pay paychecks for years. Because you're essentially a big bond, that allows you to take more risk with your portfolio. However, as you get older, you use up that human capital. You're essentially spending down your bond. You should gradually play it safer with your portfolio.
Alison Southwick: What do the personal finance writers have to say?
Robert Brokamp: These folks will point out that the longer your time frame, the greater the chances are that an investment in the stock market will be profitable and outperform cash and bonds. They're more likely to say the longer your time frame, the less risky stocks are. Most suggest some bucketing strategy, you play it super safe with money you need in the next few years, you maybe take an intermediate amount of risk for the money you need in the next several years, and then invest in stocks with most of the money you can leave alone for like a decade or more.
Alison Southwick: But what does Bro believe? Because that's what I want to know.
Robert Brokamp: You can probably guess that since we Fools tend to be big believers in the stock market and are very comfortable with risk, I tend to probably side more with the personal finance writers, although, in the end, the economists are offering similar advice. I would also say that I do think it makes sense to consider your human capital when thinking about the risks in your portfolio. What does that mean? Well, maybe you don't have too much of your net worth tied up in the stock of your employer or maybe even stocks of the companies in your industry. The more volatile and unreliable your income, the more safety you should build into your portfolio.
Alison Southwick: Our fifth and final question of contention is, how much should you invest in international stocks? What do the economists have to say here?
Robert Brokamp: Well, studies show that investors have a home country bias, that is, they invest heavily in their own countries. This isn't just the US, this is all over the world. Basically, people are concentrating their human capital and their investment capital into the same country. Many economists believe that people should instead invest in every country with the stock market in proportion to the size of that market. Right now the U.S. stock market makes up 60% of the global stock market, so everyone should have 60% of their stocks in U.S. companies. The next biggest market is Japan, which makes up 6% theglobal market so everyone should have a 6% allocation to Japan, and a 4% allocation to the United Kingdom, and a 4% allocation to China, and a 3% allocation to Canada, and so on.
Alison Southwick: What do the personal finance writers have to say about it?
Robert Brokamp: Well, most do recommend investing in international stocks, but the average recommended allocation in the books that Dr. Choi surveyed was 27%. That's lower than what maybe many economists might suggest. A couple of the books said, there's actually no need for U.S. investors to buy international stocks since a significant portion of revenue from the companies in the S&P 500 comes from international markets.
Alison Southwick: What's the final word from Bro then?
Robert Brokamp: Well, I would say if you live outside the U.S., the economists' advice is spot on. You probably shouldn't overweight your portfolio toward companies in your own country, especially if your domestic market is maybe not well regulated, or it's dominated by just one or two sectors, or even just a couple of large companies, which is the case for many countries. But for American investors, international investing is a much tougher sell these days, the U.S. has outperformed non-U.S. stocks by around 8% a year on average over the past decade. With the war in Ukraine, the energy crisis in Europe, and the slowdown in China, things just looking not so great outside the U.S. for the near term. I still think it makes sense to invest some of your long-term money in international stocks, but probably not a 40% that some economic theory might suggest.
Alison Southwick: Well, that covered five contentious questions, but I think I still need a Bro's bottom line to wrap this all up.
Robert Brokamp: What I would say is, as far as the general public is concerned, the question of whether who is more right, economists or personal finance writers, is essentially moot because the typical academic paper isn't written in a way that the average person would understand. Just consider these sentences from Dr. Choi's paper: ''If the investor has a constant relative risk aversion utility and no labor income, the optimal allocation to the stock market does not vary with the investment horizon. The story is different if stock returns are negatively auto-correlated, which causes the annualized variance of cumulative log stock returns to decrease with the investment horizon.''
Alison Southwick: So true.
Robert Brokamp: I was just saying the other day to my children. The typical person will read that and they're like, what? I don't understand what that means. Most Americans will continue to turn to the popular media because frankly, it's more accessible, less theoretical, and probably more likely to factor in things like psychology, and human behavior. Fortunately, some economists do right for a more general audience and I would say one of the more interesting personal finance books published this year, in my opinion, is a book called Money Magic by Laurence Kotlikoff, who is an economist at Boston University. The good news is that I think that the more popular mass audience financial books offer, generally, pretty good advice and if they can incorporate some of the worthwhile insights from economists, as many do, all the best.
Chris Hill: 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 stocks based solely on what you hear. I'm Chris Hill, thanks for listening. We'll see you tomorrow.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Alison Southwick has positions in Amazon and Apple. Asit Sharma has positions in Microsoft. Chris Hill has positions in Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, Under Armour (A Shares), and Under Armour (C Shares). Robert Brokamp, CFP(R) has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, Netflix, Twitter, and Under Armour (C Shares). The Motley Fool recommends Under Armour (A Shares) and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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Every time the dollar creeps up, it affects their sales, pushes down that top line in foreign currency translation, which means that someone somewhere is calculating what the S&P 500 earnings are going to look like as a group next quarter, which breeds further pessimism. Robert Brokamp: Part of that whole lifecycle hypothesis is that you build up your savings while you're working, but then when you retire, you actually spend down your assets as you age rather than trying to maintain your net worth. Just consider these sentences from Dr. Choi's paper: ''If the investor has a constant relative risk aversion utility and no labor income, the optimal allocation to the stock market does not vary with the investment horizon.
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Motley Fool host Alison Southwick and and Motley Fool personal finance expert Robert Brokamp break down the differences and share their own thoughts. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, Netflix, Twitter, and Under Armour (C Shares). The Motley Fool recommends Under Armour (A Shares) and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple.
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Robert Brokamp: You can probably guess that since we Fools tend to be big believers in the stock market and are very comfortable with risk, I tend to probably side more with the personal finance writers, although, in the end, the economists are offering similar advice. Right now the U.S. stock market makes up 60% of the global stock market, so everyone should have 60% of their stocks in U.S. companies. Chris Hill: 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 stocks based solely on what you hear.
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When should you invest in the stock market? Robert Brokamp: Indeed we do, but we weren't the first people to have these thoughts. How much should you invest in the stock market?
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2022-09-30 00:00:00 UTC
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EXCLUSIVE-Senior Indonesian officials targeted by spyware last year – sources
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https://www.nasdaq.com/articles/exclusive-senior-indonesian-officials-targeted-by-spyware-last-year-sources-0
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By Fanny Potkin, Tom Allard, Kate Lamb and Christopher Bing
Sept 30 (Reuters) - More than a dozen senior Indonesian government and military officials were targeted last year with spy software designed by an Israeli surveillance firm, according to nine people with knowledge of the matter.
Six of the individuals told Reuters they were targeted themselves.
The targets included Chief Economic Minister Airlangga Hartarto, senior military personnel, two regional diplomats, and advisers in Indonesia's defence and foreign affairs ministries, according to the people.
Six of the Indonesian officials and advisers targeted told Reuters they received an email message from Apple Inc AAPL.O in November 2021 telling them that Apple believed officials were being "targeted by state-sponsored attackers."
Apple has not disclosed the identities or number of users targeted. The company declined to comment for this story.
Apple and security researchers have said the recipients of the warnings were targeted using ForcedEntry, an advanced piece of software that has been used by Israeli cyber surveillance vendor NSO Group to help foreign spy agencies remotely and invisibly take control of iPhones. Another Israeli cyber firm, QuaDream, has developed a nearly identical hacking tool, Reuters has reported.
Reuters was unable to determine who made or used the spyware to target the Indonesian officials, whether the attempts were successful, and, if so, what the hackers might have obtained.
The attempt to target Indonesian officials, which has not previously been reported, is one of the biggest cases yet seen of the software being used against government, military and defence ministry personnel, according to cybersecurity experts.
Spokespeople for the Indonesian government, the Indonesian military, the Indonesian Defence Ministry and the Indonesian Cyber and Crypto Agency (BSSN) did not respond to requests for comments and emailed questions.
A spokesman for the Foreign Affairs Ministry said they were unaware of the case and referred Reuters to BSSN.
Alia Karenina, a spokesperson for Airlangga's ministry, said the minister, a top ally of Indonesia's President Joko Widodo, did not receive any notification from Apple about the attempted hack on his official email account.
She said the minister has not installed his official email on his personal phone and uses multiple mobile devices. Alia did not respond to questions on whether other emails used by Airlangga received a warning from Apple.
The use of ForcedEntry, which exploits a flaw in iPhones through a new hacking technique that requires no user interactions, was made public by cybersecurity watchdog Citizen Lab in September 2021. Google security researchers described it as the "most technically sophisticated" hacking attack they had ever seen, in a company blog post published in December.
Apple patched the vulnerability in September last year and in November started sending notification messages to what it called a "small number of users that it discovered may have been targeted."
In response to Reuters questions, an NSO spokesperson denied the company’s software was involved in the targeting of Indonesian officials, dismissing it as "contractually and technologically impossible," without specifying why. The company, which does not disclose the identity of its customers, says it sells its products only to "vetted and legitimate" government entities.
QuaDream did not respond to requests for comment.
In addition to the six officials and advisers who told Reuters they were targeted, a director at a state-owned Indonesian firm that provides weapons to the Indonesian army got the same message from Apple, according to two people with knowledge of the matter. The people asked not to be identified due to the sensitivity of the matter. The company director did not respond to requests for comment.
Within weeks of Apple's notification in November last year, the U.S. government added NSO to the Department of Commerce's 'entity list,' which makes it harder for U.S. companies to do business with it, after determining that the firm's phone-hacking technology had been used by foreign governments to "maliciously target" political dissidents around the world.
(Reporting by Fanny Potkin in Singapore, Tom Allard in Jakarta, Kate Lamb in Sydney and Christopher Bing in Washington; Additional reporting by Jakarta bureau; Editing by Bill Rigby)
((Fanny.Potkin@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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Six of the Indonesian officials and advisers targeted told Reuters they received an email message from Apple Inc AAPL.O in November 2021 telling them that Apple believed officials were being "targeted by state-sponsored attackers." By Fanny Potkin, Tom Allard, Kate Lamb and Christopher Bing Sept 30 (Reuters) - More than a dozen senior Indonesian government and military officials were targeted last year with spy software designed by an Israeli surveillance firm, according to nine people with knowledge of the matter. Apple and security researchers have said the recipients of the warnings were targeted using ForcedEntry, an advanced piece of software that has been used by Israeli cyber surveillance vendor NSO Group to help foreign spy agencies remotely and invisibly take control of iPhones.
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Six of the Indonesian officials and advisers targeted told Reuters they received an email message from Apple Inc AAPL.O in November 2021 telling them that Apple believed officials were being "targeted by state-sponsored attackers." By Fanny Potkin, Tom Allard, Kate Lamb and Christopher Bing Sept 30 (Reuters) - More than a dozen senior Indonesian government and military officials were targeted last year with spy software designed by an Israeli surveillance firm, according to nine people with knowledge of the matter. Spokespeople for the Indonesian government, the Indonesian military, the Indonesian Defence Ministry and the Indonesian Cyber and Crypto Agency (BSSN) did not respond to requests for comments and emailed questions.
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Six of the Indonesian officials and advisers targeted told Reuters they received an email message from Apple Inc AAPL.O in November 2021 telling them that Apple believed officials were being "targeted by state-sponsored attackers." By Fanny Potkin, Tom Allard, Kate Lamb and Christopher Bing Sept 30 (Reuters) - More than a dozen senior Indonesian government and military officials were targeted last year with spy software designed by an Israeli surveillance firm, according to nine people with knowledge of the matter. Spokespeople for the Indonesian government, the Indonesian military, the Indonesian Defence Ministry and the Indonesian Cyber and Crypto Agency (BSSN) did not respond to requests for comments and emailed questions.
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Six of the Indonesian officials and advisers targeted told Reuters they received an email message from Apple Inc AAPL.O in November 2021 telling them that Apple believed officials were being "targeted by state-sponsored attackers." By Fanny Potkin, Tom Allard, Kate Lamb and Christopher Bing Sept 30 (Reuters) - More than a dozen senior Indonesian government and military officials were targeted last year with spy software designed by an Israeli surveillance firm, according to nine people with knowledge of the matter. Spokespeople for the Indonesian government, the Indonesian military, the Indonesian Defence Ministry and the Indonesian Cyber and Crypto Agency (BSSN) did not respond to requests for comments and emailed questions.
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2022-09-30 00:00:00 UTC
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Dow Jones Bear Market: 2 Warren Buffett Stocks You Can Buy Today
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https://www.nasdaq.com/articles/dow-jones-bear-market%3A-2-warren-buffett-stocks-you-can-buy-today
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When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever. -- Warren Buffett, 1988 Berkshire Hathaway shareholder letter
The blue-chip-heavy Dow Jones Industrial Average recently tipped over into bear market territory, meaning the index has fallen at least 20% from its previous high.
No matter how many times you've seen the markets fall and then recover, it always feels unsettling to see your savings suddenly drop by 20%. There's always a sense that maybe your stocks won't come back, but that's where following the timeless investing advice of Warren Buffett can help stack the odds in your favor.
When it comes to managing Berkshire Hathaway's stock portfolio, Buffett usually invests in large, profitable companies, and he always buys them at sensible valuations. What follows are two top stocks from Berkshire's portfolio, both Dow Jones stocks, that investors can expect to deliver solid returns over the long term, while earning dividend income along the way.
Apple's installed base of devices continues to grow
Apple is increasingly looking like a "forever" investment for Buffett. He originally sank $36 billion in Apple (NASDAQ: AAPL) stock between 2016 and 2018, and it's still Berkshire's largest holding, worth a whopping $122 billion at the end of the second quarter.
Apple has a tremendous pull on the consumer. The iPhone consistently earns high customer satisfaction scores, and the large profit margin and free cash flow Apple generates every year allow for continuous improvements and investments in new products and services. Apple said it attracted a record number of switchers from other brands in the last quarter, which says a lot about its brand power.
While the latest reports suggest that initial sales of the iPhone 14 might be weaker than expected, that shouldn't scare you from buying the stock right now.
What's really building shareholder value at Apple is the growing installed base of devices. Apple reported a record high for its installed base last quarter, which has been a regular occurrence in recent years. This paves the way for further growth in sales of apps and subscriptions through the App Store, which generates a third of the company's gross profit.
Apple is also a major repurchaser of its shares, something Buffett likes to see when buying stocks. It has reduced its shares outstanding by 21% over the last five years. Share buybacks proportionally increase shareholders' percentage ownership of the entire company, which is like receiving an indirect dividend that keeps compounding in value along with the growth of the underlying business.
Apple also pays a growing stream of dividend payments to shareholders, with the current yield at 0.61%. Make no mistake, Apple is a top tech stock to buy and hold for the long term. It isn't a bargain, but a forward price-to-earnings (P/E) ratio of 24 is a fair valuation for one of the world's strongest brands.
Coca-Cola has the pricing power to counter high inflation
Buffett originally bought shares of Coca-Cola (NYSE: KO) after the 1987 market crash. Berkshire has been one of the company's largest shareholders ever since, currently holding 400 million shares, worth $25 billion at the end of the second quarter.
Coca-Cola has tremendous brand power, and it's a great stock to consider holding no matter what happens to the economy. Consider its recent performance in the second quarter. Adjusted revenue grew 16% year over year, with adjusted earnings up 4%. Coke's ability to raise prices on its products to stay ahead of inflation is a key reason the stock has outperformed the market year to date -- it's only down 5.3% at the time of writing.
Coke's products are affordable and can be purchased in large quantities with each visit to the grocery store. Because of these characteristics, small increases in unit selling prices don't impact sales volumes at all. This allows Coke to maintain a high profit margin to fund growing dividend payments and share repurchases.
Coca-Cola has repurchased roughly a third of its stock over the last 30 years. It also distributes about three-quarters of its annual earnings per share in dividends every year. The current yield is 3.11%, nearly double the S&P 500's average yield of 1.70%. In other words, investors can earn about $150 a year in income off a $5,000 investment.
Strong brands, pricing power, and cash returns to shareholders are three good reasons to buy the stock. While the stock trades at a forward P/E of 23, Coke's above-average dividend yield makes it a great stock to hold through retirement.
10 stocks we like better than Apple
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on 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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He originally sank $36 billion in Apple (NASDAQ: AAPL) stock between 2016 and 2018, and it's still Berkshire's largest holding, worth a whopping $122 billion at the end of the second quarter. -- Warren Buffett, 1988 Berkshire Hathaway shareholder letter The blue-chip-heavy Dow Jones Industrial Average recently tipped over into bear market territory, meaning the index has fallen at least 20% from its previous high. The iPhone consistently earns high customer satisfaction scores, and the large profit margin and free cash flow Apple generates every year allow for continuous improvements and investments in new products and services.
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He originally sank $36 billion in Apple (NASDAQ: AAPL) stock between 2016 and 2018, and it's still Berkshire's largest holding, worth a whopping $122 billion at the end of the second quarter. When it comes to managing Berkshire Hathaway's stock portfolio, Buffett usually invests in large, profitable companies, and he always buys them at sensible valuations. What follows are two top stocks from Berkshire's portfolio, both Dow Jones stocks, that investors can expect to deliver solid returns over the long term, while earning dividend income along the way.
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He originally sank $36 billion in Apple (NASDAQ: AAPL) stock between 2016 and 2018, and it's still Berkshire's largest holding, worth a whopping $122 billion at the end of the second quarter. What follows are two top stocks from Berkshire's portfolio, both Dow Jones stocks, that investors can expect to deliver solid returns over the long term, while earning dividend income along the way. See the 10 stocks *Stock Advisor returns as of August 17, 2022 John Ballard has no position in any of the stocks mentioned.
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He originally sank $36 billion in Apple (NASDAQ: AAPL) stock between 2016 and 2018, and it's still Berkshire's largest holding, worth a whopping $122 billion at the end of the second quarter. When it comes to managing Berkshire Hathaway's stock portfolio, Buffett usually invests in large, profitable companies, and he always buys them at sensible valuations. Apple's installed base of devices continues to grow Apple is increasingly looking like a "forever" investment for Buffett.
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19091.0
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2022-09-30 00:00:00 UTC
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US STOCKS-Wall St posts third straight quarterly loss as inflation weighs, recession looms
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-posts-third-straight-quarterly-loss-as-inflation-weighs-recession-0
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By Stephen Culp
NEW YORK, Sept 30 (Reuters) - The S&P 500 closed the books on its steepest September decline in two decades on Friday, skidding across the finish line of a tumultuous quarter fraught with historically hot inflation, rising interest rates and recession fears.
All three major indexes veered to a sharply lower end, having quashed a brief rally early in the session.
The S&P and the Dow notched their third consecutive weekly declines, and all three indexes posted their second straight monthly losses.
In the first nine months of 2022, Wall Street suffered three quarterly declines in a row, the longest losing streak for the S&P and the Nasdaq since 2008 and the Dow's longest quarterly slump in seven years.
"It's another ugly day to end an ugly quarter in what’s looking like a very ugly year," said Ryan Detrick, chief market strategist at Carson Group in Omaha, Nebraska. "Investors will look back and realize this was the year the Fed pulled a total 180 on their views on inflation and quickly turned incredibly hawkish."
The Federal Reserve has rattled markets by engaging in its most relentless series of interest rate hikes in decades in order to rein in stubbornly high inflation, which has many market participants eyeing key economic data for signs of a looming recession.
"The realization that the Fed is doing anything they can to combat 40-year-high inflation has investors worried they will push the economy over the edge and into recession," Detrick added.
The Commerce Department's personal consumption expenditures (PCE) report did little to assuage those fears, showing that while consumers continue to spend, the prices they are paying have accelerated, drifting further beyond the Fed's inflation target and all but ensuring the central bank's hawkish monetary policy will continue longer than investors had hoped.
Recession fears also echoed through dire warnings from Nike Inc NKE.N and cruise operator Carnival Corp CCL.N, both citing inflation-related margin pressures.
Shares of the companies tanked by 12.8% and 23.3%, respectively.
The Dow Jones Industrial Average .DJI fell 500.1 points, or 1.71%, to 28,725.51; the S&P 500 .SPX lost 54.85 points, or 1.51%, to 3,585.62; and the Nasdaq Composite .IXIC dropped 161.89 points, or 1.51%, to 10,575.62.
Among the 11 major sectors of the S&P 500, real estate .SPLRCR was the sole gainer, while utilities .SPLRCU tech .SPLRCT suffered the largest percentage losses.
Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com AMZN.O and Nike weighed heaviest.
Corporate earnings reports for the quarter that ends with Friday's closing bell will begin landing in a few weeks, and analyst expectations are trending downward.
Analysts now see annual S&P 500 earnings growth of 4.5%, on aggregate, down from the 11.1% estimate when the quarter began.
Quarter-end fund reallocations and so-called "window dressing" is likely contributed to the session's volatility.
Declining issues outnumbered advancing ones on the NYSE by a 1.45-to-1 ratio; on Nasdaq, a 1.38-to-1 ratio favored decliners.
The S&P 500 posted no new 52-week highs and 93 new lows; the Nasdaq Composite recorded 27 new highs and 380 new lows.
Volume on U.S. exchanges was 12.44 billion shares, compared with the 11.45 billion average over the last 20 trading days.
(Reporting by Stephen Culp; Additional reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Editing by Jonathan Oatis)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
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.O, Microsoft Corp MSFT.O, Amazon.com AMZN.O and Nike weighed heaviest. By Stephen Culp NEW YORK, Sept 30 (Reuters) - The S&P 500 closed the books on its steepest September decline in two decades on Friday, skidding across the finish line of a tumultuous quarter fraught with historically hot inflation, rising interest rates and recession fears. Recession fears also echoed through dire warnings from Nike Inc NKE.N and cruise operator Carnival Corp CCL.N, both citing inflation-related margin pressures.
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Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com AMZN.O and Nike weighed heaviest. By Stephen Culp NEW YORK, Sept 30 (Reuters) - The S&P 500 closed the books on its steepest September decline in two decades on Friday, skidding across the finish line of a tumultuous quarter fraught with historically hot inflation, rising interest rates and recession fears. "It's another ugly day to end an ugly quarter in what’s looking like a very ugly year," said Ryan Detrick, chief market strategist at Carson Group in Omaha, Nebraska.
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Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com AMZN.O and Nike weighed heaviest. By Stephen Culp NEW YORK, Sept 30 (Reuters) - The S&P 500 closed the books on its steepest September decline in two decades on Friday, skidding across the finish line of a tumultuous quarter fraught with historically hot inflation, rising interest rates and recession fears. In the first nine months of 2022, Wall Street suffered three quarterly declines in a row, the longest losing streak for the S&P and the Nasdaq since 2008 and the Dow's longest quarterly slump in seven years.
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Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com AMZN.O and Nike weighed heaviest. By Stephen Culp NEW YORK, Sept 30 (Reuters) - The S&P 500 closed the books on its steepest September decline in two decades on Friday, skidding across the finish line of a tumultuous quarter fraught with historically hot inflation, rising interest rates and recession fears. "Investors will look back and realize this was the year the Fed pulled a total 180 on their views on inflation and quickly turned incredibly hawkish."
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19092.0
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2022-09-30 00:00:00 UTC
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Apple NFTs: Everything You Need to Know
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AAPL
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https://www.nasdaq.com/articles/apple-nfts%3A-everything-you-need-to-know
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Apple (NASDAQ: AAPL) will begin allowing developers to sell NFTs, taking its normal 30% cut of sales. While that fee is being criticized by the crypto community, this could allow 1 billion more people to get into NFTs and open up a massive new market for cryptocurrencies.
*Stock prices used were end of day prices of Sept. 29, 2022. The video was published on Sept. 30, 2022.
10 stocks we like better than Apple
When our award-winning 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 Apple 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 August 17, 2022
Travis Hoium has positions in Apple, Ethereum, and Solana. The Motley Fool has positions in and recommends Apple, Ethereum, Netflix, Polygon, and Solana. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their 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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Apple (NASDAQ: AAPL) will begin allowing developers to sell NFTs, taking its normal 30% cut of sales. While that fee is being criticized by the crypto community, this could allow 1 billion more people to get into NFTs and open up a massive new market for cryptocurrencies. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Apple (NASDAQ: AAPL) will begin allowing developers to sell NFTs, taking its normal 30% cut of sales. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Travis Hoium has positions in Apple, Ethereum, and Solana. The Motley Fool has positions in and recommends Apple, Ethereum, Netflix, Polygon, and Solana.
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Apple (NASDAQ: AAPL) will begin allowing developers to sell NFTs, taking its normal 30% cut of sales. 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 17, 2022 Travis Hoium has positions in Apple, Ethereum, and Solana.
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Apple (NASDAQ: AAPL) will begin allowing developers to sell NFTs, taking its normal 30% cut of sales. That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of August 17, 2022 Travis Hoium has positions in Apple, Ethereum, and Solana.
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19093.0
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2022-09-30 00:00:00 UTC
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TQQQ, GMOM: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/tqqq-gmom%3A-big-etf-inflows
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the ProShares UltraPro QQQ, which added 37,700,000 units, or a 8.0% increase week over week. Among the largest underlying components of TQQQ, in morning trading today Apple is off about 0.4%, and Microsoft is up by about 0.3%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the GMOM ETF, which added 1,600,000 units, for a 37.6% increase in outstanding units.
VIDEO: TQQQ, GMOM: Big ETF Inflows
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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Among the largest underlying components of TQQQ, in morning trading today Apple is off about 0.4%, and Microsoft is up by about 0.3%. And on a percentage change basis, the ETF with the biggest increase in inflows was the GMOM ETF, which added 1,600,000 units, for a 37.6% increase in outstanding units. VIDEO: TQQQ, GMOM: Big ETF Inflows 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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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the ProShares UltraPro QQQ, which added 37,700,000 units, or a 8.0% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the GMOM ETF, which added 1,600,000 units, for a 37.6% increase in outstanding units. VIDEO: TQQQ, GMOM: Big ETF Inflows 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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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the ProShares UltraPro QQQ, which added 37,700,000 units, or a 8.0% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the GMOM ETF, which added 1,600,000 units, for a 37.6% increase in outstanding units. VIDEO: TQQQ, GMOM: Big ETF Inflows 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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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the ProShares UltraPro QQQ, which added 37,700,000 units, or a 8.0% increase week over week. Among the largest underlying components of TQQQ, in morning trading today Apple is off about 0.4%, and Microsoft is up by about 0.3%. And on a percentage change basis, the ETF with the biggest increase in inflows was the GMOM ETF, which added 1,600,000 units, for a 37.6% increase in outstanding units.
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19094.0
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2022-09-30 00:00:00 UTC
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Noteworthy ETF Inflows: AOR, IVV, AAPL, MSFT
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AAPL
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https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-aor-ivv-aapl-msft
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core Growth Allocation ETF (Symbol: AOR) where we have detected an approximate $65.4 million dollar inflow -- that's a 3.8% increase week over week in outstanding units (from 37,800,000 to 39,250,000). Among the largest underlying components of AOR, in trading today iShares Trust - Core S&P 500 Exchange Traded Fund (Symbol: IVV) is trading flat, Apple Inc (Symbol: AAPL) is off about 0.2%, and Microsoft Corporation (Symbol: MSFT) is higher by about 0.5%. For a complete list of holdings, visit the AOR Holdings page » The chart below shows the one year price performance of AOR, versus its 200 day moving average:
Looking at the chart above, AOR's low point in its 52 week range is $44.6785 per share, with $57.819 as the 52 week high point — that compares with a last trade of $45.09. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
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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Among the largest underlying components of AOR, in trading today iShares Trust - Core S&P 500 Exchange Traded Fund (Symbol: IVV) is trading flat, Apple Inc (Symbol: AAPL) is off about 0.2%, and Microsoft Corporation (Symbol: MSFT) is higher by about 0.5%. For a complete list of holdings, visit the AOR Holdings page » The chart below shows the one year price performance of AOR, versus its 200 day moving average: Looking at the chart above, AOR's low point in its 52 week range is $44.6785 per share, with $57.819 as the 52 week high point — that compares with a last trade of $45.09. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of AOR, in trading today iShares Trust - Core S&P 500 Exchange Traded Fund (Symbol: IVV) is trading flat, Apple Inc (Symbol: AAPL) is off about 0.2%, and Microsoft Corporation (Symbol: MSFT) is higher by about 0.5%. For a complete list of holdings, visit the AOR Holdings page » The chart below shows the one year price performance of AOR, versus its 200 day moving average: Looking at the chart above, AOR's low point in its 52 week range is $44.6785 per share, with $57.819 as the 52 week high point — that compares with a last trade of $45.09. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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Among the largest underlying components of AOR, in trading today iShares Trust - Core S&P 500 Exchange Traded Fund (Symbol: IVV) is trading flat, Apple Inc (Symbol: AAPL) is off about 0.2%, and Microsoft Corporation (Symbol: MSFT) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core Growth Allocation ETF (Symbol: AOR) where we have detected an approximate $65.4 million dollar inflow -- that's a 3.8% increase week over week in outstanding units (from 37,800,000 to 39,250,000). For a complete list of holdings, visit the AOR Holdings page » The chart below shows the one year price performance of AOR, versus its 200 day moving average: Looking at the chart above, AOR's low point in its 52 week range is $44.6785 per share, with $57.819 as the 52 week high point — that compares with a last trade of $45.09.
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Among the largest underlying components of AOR, in trading today iShares Trust - Core S&P 500 Exchange Traded Fund (Symbol: IVV) is trading flat, Apple Inc (Symbol: AAPL) is off about 0.2%, and Microsoft Corporation (Symbol: MSFT) is higher by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core Growth Allocation ETF (Symbol: AOR) where we have detected an approximate $65.4 million dollar inflow -- that's a 3.8% increase week over week in outstanding units (from 37,800,000 to 39,250,000). For a complete list of holdings, visit the AOR Holdings page » The chart below shows the one year price performance of AOR, versus its 200 day moving average: Looking at the chart above, AOR's low point in its 52 week range is $44.6785 per share, with $57.819 as the 52 week high point — that compares with a last trade of $45.09.
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19095.0
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2022-09-30 00:00:00 UTC
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5 Ways to Stress-Test a Stock in a Bear Market
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AAPL
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https://www.nasdaq.com/articles/5-ways-to-stress-test-a-stock-in-a-bear-market
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An old Warren Buffett saying goes, "Price is what you pay, value is what you get."
The volatile price action of the stock market can lead to fear of missing out on the upside and panic selling on the downside. But in reality, the true value of many companies is much more constant. Even a single quarterly earnings report rarely makes or breaks a company despite potentially sizable moves in the stock price.
In this bear market, there are many stocks that are down 50% or more from their all-time highs. In some cases, stock prices clearly got disconnected from true value, leading to a steep sell-off. But for many other companies, the stock price may be lower for little more than a downturn in the business cycle.
If your investment portfolio is down big and you want to stress-test a few stocks, you've come to the right place. Here are five methods you can use to make sure a company can outlast a prolonged bear market.
Image source: Getty Images.
1. Is the company reliant on debt or diluting its stock to run its business?
Companies that generate positive earnings and free cash flow can organically fund their operational and capital expenses. Most familiar industry-leading companies fall into this category. Apple (NASDAQ: AAPL) generates positive earnings and free cash flow and isn't reliant on diluting its share count or taking on debt to run its business. In fact, it tends to reduce its outstanding share count by buying back stock and therefore increasing earnings per share.
However, many less established and unprofitable companies may have impeccable growth potential. But that potential is dependent on bringing products to market and growing sales, which may not be possible without debt and/or equity financing. Debt financing is less attractive now that interest rates are rising. And declining stock prices and lower valuations make it a bad time to raise cash by diluting stock.
2. Does the company have a competitive advantage?
Large companies like Apple have brand power, pricing power, plenty of cash, and clear competitive advantages through product and service integration. However, there are many small companies that also have competitive advantages.
A good example of a company with a strong competitive advantage is Datadog (NASDAQ: DDOG), a cloud monitoring and analytics platform. The company doesn't generate consistent positive earnings. But it has been free cash flow positive for years. What's more, it has industry-leading customer retention and growth despite the difficult business climate. It also has more cash on its balance sheet than debt, giving it a nice failsafe in case growth slows.
Datadog is an excellent example of a smaller company that lacks earnings power but is still a great long-term buy for the reasons discussed.
3. Is the company well run?
When times are tough, companies with excellent management teams can limit excess spending, make key acquisitions, and emerge on the other side of a downturn with a leg up on their peers. Looking at the track record of a management team through past cycles is an excellent way to determine if the top brass is well equipped for challenges.
Chevron (NYSE: CVX) is a good example of the impact a strong management team can have on a business. For years, the company has kept a rock-solid balance sheet, which gave it the ability to sustain dividend growth throughout the COVID-19-induced oil and gas downturn. Chevron also made key acquisitions and was able to buy oil and gas reserves and invest in alternative energy when so many smaller oil and gas companies didn't have the resources to do so.
Today, the oil and gas industry is one of the few bright spots in the stock market, so it's not surprising that Chevron is doing well. However, the company's present position results from several key decisions made in past years. Chevron's prudence during the last oil and gas downturn, as well as its ability to capitalize on upside, makes it an excellent dividend stock to own over the long term.
4. Does the company deploy capital well?
A metric called return on capital employed (ROCE) takes earnings before interest and taxes (EBIT) and divides it by total assets minus current liabilities (also known as capital employed). In simple terms, this profitability metric shows how much EBIT a company can generate based on capital employed. The higher the ROCE, the better.
One of the big reasons Apple and Microsoft stocks are both still up big over the last three years and have grown to become the two largest U.S.-based companies by market cap is because of their ability to use capital effectively. Despite being large companies, Apple and Microsoft continue to find ways to expand into new markets and use capital effectively, something that many mature companies struggle with. As a result, both companies currently have higher ROCE ratios than their five-year medians.
AAPL Return on Capital Employed data by YCharts.
To further illustrate the point, notice how Apple and Microsoft have higher ROCE ratios than smaller and faster-growing companies like Advanced Micro Devices or Netflix -- a testament to their competitive advantages and effective execution.
5. Does the company have a path toward multi-decade growth?
No matter how old a company is or the industry it is in -- the company must have a path toward long-term growth. Without growth, companies can't boost dividends, make acquisitions, or achieve product penetration into new markets. Growing revenue and earnings justify rising stock prices. The opposite is true for companies that fail to sustain growth.
Keep even-keeled and make a calculated decision
A silver lining of bear markets is that investors get to see how their favorite companies hold up during a period of heightened volatility and downward selling pressure. What's more, they also get to see how management responds to challenges and how vulnerable a business is to macroeconomic and secular headwinds.
By stress-testing your holdings, an investor can see if a position is worth adding to, holding, or selling, thereby making a decision independent of the price action the market throws at you.
10 stocks we like better than Datadog
When our award-winning 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 Datadog 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 17, 2022
Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Datadog, Microsoft, and Netflix. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on 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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Apple (NASDAQ: AAPL) generates positive earnings and free cash flow and isn't reliant on diluting its share count or taking on debt to run its business. AAPL Return on Capital Employed data by YCharts. To further illustrate the point, notice how Apple and Microsoft have higher ROCE ratios than smaller and faster-growing companies like Advanced Micro Devices or Netflix -- a testament to their competitive advantages and effective execution.
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Apple (NASDAQ: AAPL) generates positive earnings and free cash flow and isn't reliant on diluting its share count or taking on debt to run its business. AAPL Return on Capital Employed data by YCharts. A metric called return on capital employed (ROCE) takes earnings before interest and taxes (EBIT) and divides it by total assets minus current liabilities (also known as capital employed).
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Apple (NASDAQ: AAPL) generates positive earnings and free cash flow and isn't reliant on diluting its share count or taking on debt to run its business. AAPL Return on Capital Employed data by YCharts. One of the big reasons Apple and Microsoft stocks are both still up big over the last three years and have grown to become the two largest U.S.-based companies by market cap is because of their ability to use capital effectively.
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Apple (NASDAQ: AAPL) generates positive earnings and free cash flow and isn't reliant on diluting its share count or taking on debt to run its business. AAPL Return on Capital Employed data by YCharts. Chevron also made key acquisitions and was able to buy oil and gas reserves and invest in alternative energy when so many smaller oil and gas companies didn't have the resources to do so.
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19096.0
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2022-09-30 00:00:00 UTC
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After Hours Most Active for Sep 30, 2022 : PCG, EQT, FYBR, HAIN, CHNG, DRE, IXUS, AAPL, QQQ, MCW, AEO, T
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-sep-30-2022-%3A-pcg-eqt-fybr-hain-chng-dre-ixus-aapl-qqq-mcw-aeo
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 10.93 to 10,982.15. The total After hours volume is currently 155,645,800 shares traded.
The following are the most active stocks for the after hours session:
Pacific Gas & Electric Co. (PCG) is unchanged at $12.50, with 113,777,178 shares traded. PCG's current last sale is 78.13% of the target price of $16.
EQT Corporation (EQT) is unchanged at $40.75, with 53,061,449 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $1.02. As reported by Zacks, the current mean recommendation for EQT is in the "buy range".
Frontier Communications Parent, Inc. (FYBR) is unchanged at $23.43, with 11,870,229 shares traded. As reported in the last short interest update the days to cover for FYBR is 15.074834; this calculation is based on the average trading volume of the stock.
The Hain Celestial Group, Inc. (HAIN) is unchanged at $16.88, with 11,157,533 shares traded. As reported by Zacks, the current mean recommendation for HAIN is in the "buy range".
Change Healthcare Inc. (CHNG) is unchanged at $27.49, with 6,582,929 shares traded. CHNG's current last sale is 99.06% of the target price of $27.75.
Duke Realty Corporation (DRE) is +0.1 at $48.30, with 5,978,956 shares traded. DRE's current last sale is 74.31% of the target price of $65.
iShares Core MSCI Total International Stock ETF (IXUS) is +0.3452 at $51.27, with 5,227,901 shares traded. This represents a 1.58% increase from its 52 Week Low.
Apple Inc. (AAPL) is +0.11 at $138.31, with 4,620,383 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.85 at $268.11, with 3,851,821 shares traded., following a 52-week high recorded in today's regular session.
Mister Car Wash, Inc. (MCW) is -0.08 at $8.50, with 2,804,315 shares traded. MCW's current last sale is 50% of the target price of $17.
American Eagle Outfitters, Inc. (AEO) is unchanged at $9.73, with 2,361,103 shares traded., following a 52-week high recorded in today's regular session.
AT&T Inc. (T) is +0.01 at $15.35, with 2,236,395 shares traded., following a 52-week high recorded in today's regular session.
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 +0.11 at $138.31, with 4,620,383 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for FYBR is 15.074834; this calculation is based on the average trading volume of the stock.
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Apple Inc. (AAPL) is +0.11 at $138.31, with 4,620,383 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 155,645,800 shares traded.
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Apple Inc. (AAPL) is +0.11 at $138.31, with 4,620,383 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". EQT Corporation (EQT) is unchanged at $40.75, with 53,061,449 shares traded.
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Apple Inc. (AAPL) is +0.11 at $138.31, with 4,620,383 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The following are the most active stocks for the after hours session:
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19097.0
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2022-09-30 00:00:00 UTC
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Apple Inc. (AAPL) Is a Trending Stock: Facts to Know Before Betting on It
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-aapl-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-1
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nan
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nan
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this maker of iPhones, iPads and other products have returned -9.8%, compared to the Zacks S&P 500 composite's -9.5% change. During this period, the Zacks Computer - Mini computers industry, which Apple falls in, has lost 11.8%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Apple is expected to post earnings of $1.25 per share, indicating a change of +0.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $6.10 points to a change of +8.7% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $6.48 indicates a change of +6.2% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Apple, the consensus sales estimate for the current quarter of $88.09 billion indicates a year-over-year change of +5.7%. For the current and next fiscal years, $392.24 billion and $410.58 billion estimates indicate +7.2% and +4.7% changes, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $82.96 billion in the last reported quarter, representing a year-over-year change of +1.9%. EPS of $1.20 for the same period compares with $1.30 a year ago.
Compared to the Zacks Consensus Estimate of $81.99 billion, the reported revenues represent a surprise of +1.19%. The EPS surprise was +5.26%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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
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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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Apple Inc. (AAPL): Free Stock Analysis Report Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Apple Inc. (AAPL): Free Stock Analysis Report The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Apple Inc. (AAPL): Free Stock Analysis Report With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Apple Inc. (AAPL): Free Stock Analysis Report When earnings estimates for a company go up, the fair value for its stock goes up as well.
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19098.0
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2022-09-30 00:00:00 UTC
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We Did The Math QUS Can Go To $132
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AAPL
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https://www.nasdaq.com/articles/we-did-the-math-qus-can-go-to-%24132
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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 SPDR MSCI USA StrategicFactors ETF (Symbol: QUS), we found that the implied analyst target price for the ETF based upon its underlying holdings is $131.83 per unit.
With QUS trading at a recent price near $102.84 per unit, that means that analysts see 28.19% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of QUS's underlying holdings with notable upside to their analyst target prices are Apple Inc (Symbol: AAPL), Universal Health Services, Inc. (Symbol: UHS), and NovoCure Ltd (Symbol: NVCR). Although AAPL has traded at a recent price of $142.48/share, the average analyst target is 29.51% higher at $184.53/share. Similarly, UHS has 28.45% upside from the recent share price of $90.49 if the average analyst target price of $116.23/share is reached, and analysts on average are expecting NVCR to reach a target price of $98.88/share, which is 28.33% above the recent price of $77.05. Below is a twelve month price history chart comparing the stock performance of AAPL, UHS, and NVCR:
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
SPDR MSCI USA StrategicFactors ETF QUS $102.84 $131.83 28.19%
Apple Inc AAPL $142.48 $184.53 29.51%
Universal Health Services, Inc. UHS $90.49 $116.23 28.45%
NovoCure Ltd NVCR $77.05 $98.88 28.33%
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 »
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 AAPL has traded at a recent price of $142.48/share, the average analyst target is 29.51% higher at $184.53/share. SPDR MSCI USA StrategicFactors ETF QUS $102.84 $131.83 28.19% Apple Inc AAPL $142.48 $184.53 29.51% Universal Health Services, Inc. UHS $90.49 $116.23 28.45% NovoCure Ltd NVCR $77.05 $98.88 28.33% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of QUS's underlying holdings with notable upside to their analyst target prices are Apple Inc (Symbol: AAPL), Universal Health Services, Inc. (Symbol: UHS), and NovoCure Ltd (Symbol: NVCR).
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Three of QUS's underlying holdings with notable upside to their analyst target prices are Apple Inc (Symbol: AAPL), Universal Health Services, Inc. (Symbol: UHS), and NovoCure Ltd (Symbol: NVCR). SPDR MSCI USA StrategicFactors ETF QUS $102.84 $131.83 28.19% Apple Inc AAPL $142.48 $184.53 29.51% Universal Health Services, Inc. UHS $90.49 $116.23 28.45% NovoCure Ltd NVCR $77.05 $98.88 28.33% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although AAPL has traded at a recent price of $142.48/share, the average analyst target is 29.51% higher at $184.53/share.
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Three of QUS's underlying holdings with notable upside to their analyst target prices are Apple Inc (Symbol: AAPL), Universal Health Services, Inc. (Symbol: UHS), and NovoCure Ltd (Symbol: NVCR). Although AAPL has traded at a recent price of $142.48/share, the average analyst target is 29.51% higher at $184.53/share. Below is a twelve month price history chart comparing the stock performance of AAPL, UHS, and NVCR: Below is a summary table of the current analyst target prices discussed above:
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SPDR MSCI USA StrategicFactors ETF QUS $102.84 $131.83 28.19% Apple Inc AAPL $142.48 $184.53 29.51% Universal Health Services, Inc. UHS $90.49 $116.23 28.45% NovoCure Ltd NVCR $77.05 $98.88 28.33% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of QUS's underlying holdings with notable upside to their analyst target prices are Apple Inc (Symbol: AAPL), Universal Health Services, Inc. (Symbol: UHS), and NovoCure Ltd (Symbol: NVCR). Although AAPL has traded at a recent price of $142.48/share, the average analyst target is 29.51% higher at $184.53/share.
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19099.0
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2022-09-30 00:00:00 UTC
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EXPLAINER-How a massive options trade by a JP Morgan fund can move markets
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AAPL
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https://www.nasdaq.com/articles/explainer-how-a-massive-options-trade-by-a-jp-morgan-fund-can-move-markets-0
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nan
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By Saqib Iqbal Ahmed
March 30 (Reuters) - A nearly $15 billion JP Morgan fund is expected to reset its options positions on Friday, potentially adding to equity volatility at the end of a strong quarter for U.S. stocks.
Analysts have in the past pointed to the JPMorgan Hedged Equity Fund’s quarterly reset roiling markets, and see it as a source of potential volatility during Friday's session.
WHAT IS THE JP MORGAN HEDGED EQUITY FUND?
The JPMorgan Hedged Equity Fund holds a basket of S&P 500 .SPX stocks along with options on the benchmark index and resets hedges once a quarter. The fund, which had about $14.71 billion in assets as of March 29, aims to let investors benefit from equity market gains while limiting their exposure to declines.
For the year, the fund was up 5.71% through March 29, compared with a 5.35% rise for the S&P 500 Total return Index .SPXTR.
The fund's assets ballooned in recent years, as investors sought protection from the sort of wild swings that rocked markets in the wake of the COVID-19 outbreak in March 2020.
Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O.
HOW DOES THE FUND USE OPTIONS?
The fund uses an options strategy that seeks to protect investors if the S&P 500 falls between 5% and 20%, while allowing them to take advantage of any market gains in the average range of 3.5-5.5%.
On Dec. 30, the refresh of the fund's options positions involved about 125,000 S&P 500 options contracts in all, including S&P 500 puts at strike prices $3,060 and $3,600 and calls at $4,065, all for the March 31 expiry.
HOW CAN THIS AFFECT THE BROADER MARKET?
Options dealers - typically big financial institutions that facilitate trading but seek to remain market-neutral - take the other side of the fund's options trades.
To minimize their own risk, they typically buy or sell stock futures, depending on the direction of the market's move. Such trading related to dealer hedging has the potential to influence the broader market, especially if done in size, as is the case for the JPM trade.
While the trade is well known and anticipated by most market participants, it can exacerbatedaily stock marketmoves, especially during times of poor market liquidity, analysts say.
Massive S&P options trade may have roiled U.S. stocks on Thursday
(Reporting by Saqib Iqbal Ahmed in New York Editing by Ira Iosebashvili and Matthew Lewis)
((saqib.ahmed@thomsonreuters.com; @SaqibReports; +1 332 219 1971; Reuters Messaging: saqib.ahmed.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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Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O. By Saqib Iqbal Ahmed March 30 (Reuters) - A nearly $15 billion JP Morgan fund is expected to reset its options positions on Friday, potentially adding to equity volatility at the end of a strong quarter for U.S. stocks. Analysts have in the past pointed to the JPMorgan Hedged Equity Fund’s quarterly reset roiling markets, and see it as a source of potential volatility during Friday's session.
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Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O. By Saqib Iqbal Ahmed March 30 (Reuters) - A nearly $15 billion JP Morgan fund is expected to reset its options positions on Friday, potentially adding to equity volatility at the end of a strong quarter for U.S. stocks. Analysts have in the past pointed to the JPMorgan Hedged Equity Fund’s quarterly reset roiling markets, and see it as a source of potential volatility during Friday's session.
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Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O. By Saqib Iqbal Ahmed March 30 (Reuters) - A nearly $15 billion JP Morgan fund is expected to reset its options positions on Friday, potentially adding to equity volatility at the end of a strong quarter for U.S. stocks. The JPMorgan Hedged Equity Fund holds a basket of S&P 500 .SPX stocks along with options on the benchmark index and resets hedges once a quarter.
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Its holdings include some of the market's biggest names, such as Apple Inc AAPL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O. By Saqib Iqbal Ahmed March 30 (Reuters) - A nearly $15 billion JP Morgan fund is expected to reset its options positions on Friday, potentially adding to equity volatility at the end of a strong quarter for U.S. stocks. The JPMorgan Hedged Equity Fund holds a basket of S&P 500 .SPX stocks along with options on the benchmark index and resets hedges once a quarter.
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