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TYLER, Texas (KLTV) - Tuesday is the second day of National Zoo Keeper Week, and Hayley Bragg, the senior keeper with the mammals department, takes us behind the scenes at Caldwell Zoo.
Bragg did a training session with their two Louisiana black bears. She says she is building a relationship with the bears and helping them learn how to participate in their own voluntary medical care. She demonstrated how they get the bears to open their mouths, so they can inspect their teeth and see any possible issues.
“Not only am I playing an awesome role in their husbandry but it’s fun as well for us because growing up, this is what most of us wanted to do - we wanted to work with animals and be zoo keepers, and Sammy and I here are getting to live the dream right now,” Bragg says. | 2022-07-19T20:25:39Z | www.kltv.com | WebXtra: Tyler zookeeper gives behind-the-scenes look at bears | https://www.kltv.com/2022/07/19/webxtra-tyler-zookeeper-gives-behind-the-scenes-look-bears/ | https://www.kltv.com/2022/07/19/webxtra-tyler-zookeeper-gives-behind-the-scenes-look-bears/ |
VAN ZANDT COUNTY, Texas (KLTV) - According to the City of Van Fire Department, some residents are being evacuated due to the approach of fires to their homes.
There are several large fires currently working in Van Zandt County, the fire department says. An evacuation center is set up at Canton intermediate for victims from the grass fires, according to the South Van Zandt Fire Department.
They are located at VZ County road 1518, Interstate 20 around the 523 mile marker, and Highway 80 near the Kaufman County Line.
Van FD says multiple departments are working the fire, which is so far at about 100+ acres. They also said traffic in the area is being affected by smoke.
Be aware of emergency traffic throughout the county as mutual aid departments arrive to assist on these fires. | 2022-07-20T00:24:35Z | www.kltv.com | Van Zandt County residents being evacuated from fire areas | https://www.kltv.com/2022/07/19/van-zandt-county-residents-being-evacuated-fire-areas/ | https://www.kltv.com/2022/07/19/van-zandt-county-residents-being-evacuated-fire-areas/ |
By Jamey Boyum and KLTV Digital Media Staff
HALLSVILLE, Texas (KLTV) - A 17-acre fire that happened July 12 at the East Hallsville city limits has been ruled accidental.
According to Hallsville Fire Marshal Bert Scott, three juveniles found a lighter while in the woods and started a small fire near a fort they had built. The juveniles said they thought they put the fire out, but it flared up and burned 17 acres including part of the practice baseball field at Hallsville Junior High. No criminal charges will be filed against the juveniles since they didn’t intend to set the fire. Scott says the investigation of that fire is now closed.
Scott also said that Hallsville Fire Department put out three grass fires on Tuesday alongside several roads outside the Hallsville city limits. None of them were larger than half an acre. The causes of the fires are undetermined.
City of White Oak implements voluntary water use restrictions | 2022-07-20T16:12:01Z | www.kltv.com | 17-acre Hallsville fire accidentally started by juveniles | https://www.kltv.com/2022/07/20/17-acre-hallsville-fire-accidentally-started-by-juveniles/ | https://www.kltv.com/2022/07/20/17-acre-hallsville-fire-accidentally-started-by-juveniles/ |
WHITE OAK, Texas (KLTV) - The City of White Oak is requesting residents follow a voluntary water conservation schedule.
A mandatory plan will follow if a needed reduction is not met.
The City of White Oak announced they are implementing a Water Conservation Action Plan for all residents starting July 20 due to current drought conditions.
Water use will be monitored daily until levels return to normal, with a goal of 5% total daily water usage reduction.
Residents are asked to limit watering of landscaped areas to between 10 p.m. and 6 a.m., on specific days assigned according to address.
For even-numbered street addresses: Sundays & Thursdays
For odd-numbered street addresses: Saturdays & Wednesdays
Residents are also asked to minimize or discontinue water use for non-essential purposes.
These voluntary measures fall under Stage 1 (mild water shortage conditions). If the city’s goal is not met, mandatory stages 2-5 may follow, which have penalties. | 2022-07-20T17:09:42Z | www.kltv.com | City of White Oak issues voluntary water conservation plan | https://www.kltv.com/2022/07/20/city-white-oak-issues-voluntary-water-conservation-plan/ | https://www.kltv.com/2022/07/20/city-white-oak-issues-voluntary-water-conservation-plan/ |
Citing reasons such as failing to perform required duties and failing to train employees, a group of attorneys has signed a legal petition to remove Upshur Coun
GILMER, Texas (KLTV) - Citing reasons such as failing to perform required duties and failing to train employees, a group of attorneys has signed a legal petition to remove Upshur County District Clerk Karen Bunn from office.
Lead plaintiffs David Griffith, Matthew Patton and Brandon Winn filed the petition through counsel Joe Newsom.
“Throughout the majority of Defendant’s term of office, Defendant failed or refused to be present in her office at the Upshur County Justice Center and neglected her duties as District Clerk,” the petition states.
The petition states the district clerk’s office has continued to degenerate over the past few months, as they have not been able to process filings, prepare citations, process attorney’s fees and process invoices.
“Indeed, some of the most mundane and rudimentary tasks required are done in the most inefficient, negligent, and poorest level imaginable,” the petition states. “The District Clerk’s office is in utter disarray.”
The petition states the county is in danger of losing funding from the Texas Indigent Defense Commission because the clerk’s office is not in compliance with reporting requirements. The petition also states case files are not up to date and erroneous, which disrupts court hearings. The petition cites a file mark for “June 35, 2022″ as an example of an error.
The attorneys have requested an out-of-county judge be required to handle the case.
Eight other attorneys have signed the petition.
A clerk at the district clerk’s office said Bunn is out on medical leave until November.
According to sworn affidavits from the lawsuit, a former employee of the Upshur County district clerk alleged Bunn was hardly ever in the office. It says Bunn would come in at least once a week, but there would be periods of several days where she would not come in at all.
In the same affidavit, the former employee states when they were performing as a criminal file clerk, they received no training on what they were supposed to do or what was expected of them. In one particular incident, due to the lack of training, the former employee said an inmate that was supposed to be released from the Upshur County jail erroneously spent more than 10 days in the jail because no one from the district clerk’s office had provided the jail with the order of release from the judge. The former employee said she had asked the chief deputy what needed to be done with the order and was told they needed to file-mark the document, make a copy of it, scan to Net Data, make a copy for the attorney’s folder in the office, and place the original in file and nothing else needed to be done.
“The district clerk’s office is dysfunctional, and the district clerk is not performing her statutory requirements or her Constitutional duties as district clerk,” the affidavit read.
A separate affidavit from another former employee alleged that they were told by a employee at the district clerk’s office that the chief deputy clerk and two 18-year-old boys at one point were on the floor having a push up competition when customers walk in to utilize the services of the Upshur County district clerk. The same affidavit alleged that the chief deputy stated to them that they “were swamped” and blamed most of the mess on previous and past employees. | 2022-07-20T18:41:30Z | www.kltv.com | Attorneys file petition to remove Upshur County district clerk from office | https://www.kltv.com/2022/07/20/attorneys-file-petition-remove-upshur-county-district-clerk-office/ | https://www.kltv.com/2022/07/20/attorneys-file-petition-remove-upshur-county-district-clerk-office/ |
East Texas (KLTV) - It’s been another scorcher today and the excessive heat warning won’t expire until this evening. Temperatures will most likely stay in the 80s overnight and into early tomorrow morning. A weak cold front tries to move into East Texas tomorrow. The front will likely wash out over the area, but might disturb the atmosphere just enough for a few isolated showers and thunderstorms. This slight chance for rain will last into Friday afternoon. With just a few more clouds and a few isolated showers, temperatures should be just shy of the triple digit mark for the end of the work week, but any relief no matter how small will be gone quickly this weekend. Mostly sunny to partly cloudy for Saturday and Sunday with afternoon highs right back in the triple digits each afternoon.
Late Afternoon Weather at your Fingertips Wednesday 7-20-22 | 2022-07-20T21:46:15Z | www.kltv.com | Evening Weather at your Fingertips | https://www.kltv.com/2022/07/20/evening-weather-your-fingertips/ | https://www.kltv.com/2022/07/20/evening-weather-your-fingertips/ |
TYLER, Texas (KLTV) - In 2019, a portion of the Caddo Mounds State Historic Site in Alto was destroyed by a tornado.
KLTV 7′s Willie Downs reports on how one unique spot of the site -- which survived the tornado -- is getting a makeover.
“It’s called Snake Woman’s Garden because of the Caddo origin story of Snake Woman and so, in that way the garden is sort of this historical look at the plants in the area but also sharing this piece of culture from the area,” says Sophia Hartl, intern at Caddo Mounds State Historic Site.
Based on Caddo legend- a snake woman was responsible for bringing seeds to the Caddo people. Legend has it she taught them how to farm.
Also according to the USDA site, her story is meant to teach children respect for plant life.
Now, the Snake Woman’s Garden will soon be the home to a new mosaic thanks to the group, Friends of Caddo Mounds.
Anthony Souther, the site manager, says that when Rachel Galan, assistant site manager and Maggie Leysath, presented the snake mosaic design to the Caddo for approval, they told them…
“When they were here at this site, they were as sophisticated as we are in the food ways we have,” says Souther. “They did hunt and gather food but they were also purposefully growing food and that garden is meant to show that.”
He says what a lot of people consider weeds today, were actually a food source for people a thousand years ago.
“Everyone here has been so excited about the possibilities, and I think with the garden especially, you know, it just shows how much we can still accomplish and how – there’s still people working towards a better future, a greener future,” says Hartl. | 2022-07-21T02:51:36Z | www.kltv.com | New mosaic underway at Caddo Mounds State Historic Site | https://www.kltv.com/2022/07/21/new-mosaic-underway-caddo-mounds-state-historic-site/ | https://www.kltv.com/2022/07/21/new-mosaic-underway-caddo-mounds-state-historic-site/ |
TYLER, Texas (KLTV) - Although there is a nationwide truck driver shortage, more East Texans are looking to join the industry.
The American Trucking Associations (ATA) reported a shortage of 80,000 drivers last year, an all-time high that ATA predicts will reach 160,000 by 2030.
Rapid CDL Owner Chris Griffith said he can see the shortage in the number of calls he hears from companies needing help.
“They call me every day, ‘I don’t, I can’t get drivers I don’t have enough, I need more drivers,’” Griffith said about the companies.
Drivers are also dealing with the rise in fuel costs.
The national average for a gallon of diesel is $5.47, which is up about $2.20 from last year.
“One of our trucks is $900 to fill one truck up. We got seven. So, you see if you get companies that have 500 trucks, you see how devastating that is to them but that’s why its sad but everything goes up, and that’s why all the prices are going up, groceries are going up,” Griffith said.
According to ATA more than 80 percent of American communities rely exclusively on trucks for freight services, so capacity constraints on trucking supply chains caused by inflation directly impact the cost for those consumers.
Now, trucking companies are raising wages to compete with the rise in diesel and consumer good prices.
“I had a guy they’re paying $25, $30 an hour for people right out of class with no experience to drive and be home every night,” Griffith said.
Within the past few months, the number of students at Rapid CDL has doubled.
“The income is like out the roof right now when it comes to trucking. You can make a good living in truck driving,” Griffith said.
Trucks And Diesel | 2022-07-21T23:35:13Z | www.kltv.com | East Texas CDL school sees increase in students amidst truck driver shortage, inflation | https://www.kltv.com/2022/07/21/east-texas-cdl-school-sees-increase-students-amidst-truck-driver-shortage-inflation/ | https://www.kltv.com/2022/07/21/east-texas-cdl-school-sees-increase-students-amidst-truck-driver-shortage-inflation/ |
TYLER, Texas (KLTV) - 2M Farm is the farm Samantha Schaffer’s grandfather built around 1975.
She’s been working on this farm her entire life and says she has never experienced dry weather like this.
“You don’t have to water them everyday but even with watering them they turn into dust,” Shaffer says.
Shaffer has 3,000 crops and almost all of them have grown prematurely.
“The rest of the garden over their I water four to five hours a day but it’s still…just nothing,” Shaffer says.
Shaffer has an electric underground water well and still struggles.
“The cattle market was going down and the feed market was going up so we kind of bowed down out of it last fall,” Shaffer says.
Schaffer decided to grow more crops with intentions to sell to farmer’s markets to replace the income she lost after backing out of the cattle business. | 2022-07-22T00:10:00Z | www.kltv.com | East Texas farmers struggle due to extreme heat | https://www.kltv.com/2022/07/21/east-texas-farmers-struggle-due-extreme-heat/ | https://www.kltv.com/2022/07/21/east-texas-farmers-struggle-due-extreme-heat/ |
East Texas (KLTV) - Scattered showers and isolated thunderstorms will be dying out after sunset this evening. The clouds and the rain did help keep temperatures cooler today, though, even if the rain didn’t fall everywhere. Temperatures will also be slightly cooler tonight with overnight lows in the upper 70s. Another decent shot at some scattered showers and thunderstorms tomorrow through the afternoon and early evening and maybe a sprinkle or two early Saturday morning. Most of the weekend is back to hot and humid with triple digits returning through early next week. Another weak cold front is expected at the end of next week with another chance for rain and another brief cool down. | 2022-07-22T00:10:12Z | www.kltv.com | Evening Weather at your Fingertips | https://www.kltv.com/2022/07/21/evening-weather-your-fingertips/ | https://www.kltv.com/2022/07/21/evening-weather-your-fingertips/ |
SMITH COUNTY (KLTV) - Several people have died following an early morning wreck on a Smith County highway.
Just after 5 a.m. Friday, first responders were called to the scene of a two vehicle wreck on 110 Van Highway at County Road 48 north of Tyler.
All lanes of 110 Van Highway are shut down at this time. Southbound traffic is being diverted to FM 3271 and Northbound traffic is being diverted to FM 2016. | 2022-07-22T13:18:27Z | www.kltv.com | Five dead in early morning crash in Smith County | https://www.kltv.com/2022/07/22/several-dead-early-morning-crash-smith-county/ | https://www.kltv.com/2022/07/22/several-dead-early-morning-crash-smith-county/ |
parvo puppies(KLTV)
TYLER, Texas (KLTV) - Nicholas’ Pet Haven is closed for two weeks because of the recent parvovirus outbreak affecting 11 puppies.
Spence and White Veterinary Hospital, located next door, has taken in the puppies and is isolating them in their critical care facility.
Owner of Spence and White Veterinary Hospital, Dr. Gary Spence says he has not seen an outbreak like this in six years in his hospital.
“It’s what’s known as a vehicular transfer virus,” says Dr. Spence.
Parvovirus is a contagious disease that more commonly affects puppies than adult dogs. Dr. Spence says the virus used to be cat distemper but changed species in the 1980′s, coming from South America to the U.S.
According to Dr. Spence, the virus spreads to the gastrointestinal tract of the dog.
“You’ve got your intestinal wall, but then you’ve got thousands and thousands of villi that line your intestinal wall where all your absorption takes place. And as the parvovirus replicates, the tips of the villi rupture, and each of those tips has a vessel in it that sits there and just spurts blood and they bleed to death.”
The best method of prevention is to get your puppies vaccinated. The Spence and White Vet Hospital gives puppies four parvo shots until they turn six weeks old, and then will give it to them yearly.
Dr. Spence stresses the importance of getting the vaccine in America.
“Our viruses that we’ve got here are a lot more severe. The exposure to animal population is a lot more severe. The spread of disease is a lot more severe.” says Dr. Spence.
Unfortunately, two puppies have passed away from the outbreak. But, the hospital has seen great improvement among the other nine.
Dr. Spence says, “But now it looks like we’ve turned the corner. The puppies that we’ve got now are all starting to eat again.” | 2022-07-23T00:30:50Z | www.kltv.com | Spence and White vet hospital caring for parvo outbreak puppies | https://www.kltv.com/2022/07/23/spence-white-vet-hospital-caring-parvo-outbreak-puppies/ | https://www.kltv.com/2022/07/23/spence-white-vet-hospital-caring-parvo-outbreak-puppies/ |
LONGVIEW, Texas (KLTV) - A huge donation comes to the rescue of a rescue mission desperately in need of food to help feed the homeless.
Last month the Hiway 80 Rescue Mission in Longview had a cold storage freezer stop functioning, resulting in the disposal of food after it spoiled. For a mission that prepares over 500 meals a day, it put them in dire straits. Coming to the rescue was Tyson Foods who, on Friday, donated 41,000 pounds of chicken. Hiway 80 Rescue Mission Director Brian Livingston talks about the donation being a godsend. | 2022-07-25T00:37:09Z | www.kltv.com | Tyson Foods makes large food donation to Longview rescue mission | https://www.kltv.com/2022/07/25/tyson-foods-makes-large-food-donation-longview-rescue-mission/ | https://www.kltv.com/2022/07/25/tyson-foods-makes-large-food-donation-longview-rescue-mission/ |
WILLS POINT, Texas (KLTV) - An active gas leak has police warning pedestrians and drivers to avoid the area.
Wills Point Police are advising drivers to avoid traffic from the intersection of South Mary Street and West O’Neal Street through the intersection of School Street and Highway 80.
CenterPoint is on-scene to repair the leak. | 2022-07-25T15:23:51Z | www.kltv.com | Gas leak reported on Wills Point intersection | https://www.kltv.com/2022/07/25/wills-point-drivers-advised-seek-alternate-routes-avoid-gas-leak/ | https://www.kltv.com/2022/07/25/wills-point-drivers-advised-seek-alternate-routes-avoid-gas-leak/ |
Watch KLTV 7 News at 6.
By Blake Holland and Willie Downs
TYLER, Texas (KLTV) - The Tyler ISD Police Department’s latest plan of action calls for the hiring of additional officers for assignment at all elementary school campuses.
“We’re trying to get a full time officer on every campus,” said Danny Brown, Tyler ISD Police Chief. “That’s our ultimate goal.”
In the past, Brown said officers assigned to middle school campuses have also covered elementary campuses.
The department’s plan also includes purchasing new ballistic shields and tactical equipment, which the school board is set to vote on at their Monday night meeting.
“We have some but not enough,” Brown said about ballistic shields. “We feel like we need some additional equipment and we’re asking the school board for that tonight.
Brown said tactical equipment and additional officers are just a couple of ways the district is beefing up security. The district now employs three retired FBI agents who oversee safety and security.
“They’ve touched every lock in this in this district to make sure that everything is is ready for school to start,” Brown said.
Brown added bullet resistant film has also been added to the entrances of some campuses.
“It’s hard to believe we’ve had to do this but we’re gonna do it and make sure that our kiddos are safe because that’s our that’s our number one goal,” Brown said. | 2022-07-26T00:36:09Z | www.kltv.com | Tyler ISD police department plan calls for additional officers, more ballistic shields | https://www.kltv.com/2022/07/25/tyler-isd-police-department-plan-calls-additional-officers-more-ballistic-shields/ | https://www.kltv.com/2022/07/25/tyler-isd-police-department-plan-calls-additional-officers-more-ballistic-shields/ |
COFFEE CITY, Texas (KLTV) - Questioning the legality of his standing in Coffee City government, a resigned councilman states he is willing to return to meetings.
Kevin Swanson resigned from the city council on May 2 by turning in a letter to the city secretary. The city has filed a lawsuit requesting Swanson and other resigned members return to meetings so the council can have a quorum and resume meetings.
Swanson has filed an answer to the lawsuit, stating he resigned legally and his resignation does not have to be accepted by the council. Swanson questioned if he could legally return to council.
Swanson was the first of three councilmen to resign. Ray Ver Hey and Riley Standifer resigned over the subsequent weeks. Posted agendas leave a confusing trail of who was on the council. An agenda posted on May 2 shows a roster of elected members. One on May 9 shows a vacated Place 3 and Place 4. An agenda posted on June 13 shows the five original elected councilmembers back on the document.
“As you can see the City of Coffee City had several opportunities to replace the first 2 but instead decided to table the action for some unknown reason,” Swanson states.
Swanson states one of the proposed replacements for his position by Mayor Frank Serrato was not a resident of Coffee City, making them ineligible.
“If the court would prefer me to be present then I will come in and do a vote if I can legally vote since I have been resigned the longest of all the council members,” Swanson states. “In order for me to vote I would need the documentation that all parties are being considered have the legal right to be on the council.”
Swanson also questioned the council’s judgment.
“This Council had ample opportunity to replace my position but chose not,” he states. “So are they really a good judge on what to do?” | 2022-07-26T18:19:24Z | www.kltv.com | Resigned Coffee City councilman questions legality of returning to meetings | https://www.kltv.com/2022/07/26/resigned-coffee-city-councilman-questions-legality-returning-meetings/ | https://www.kltv.com/2022/07/26/resigned-coffee-city-councilman-questions-legality-returning-meetings/ |
SMITH COUNTY, Texas (KLTV) - A suspect has been arrested after a pursuit that started in Smith County and ended in Van Zandt County.
According to Smith County Pct. 5 Constable Jeff McClenny, law enforcement received a report from a motorist of someone waving a gun. A Pct. 5 deputy constable then conducted a traffic stop on a vehicle matching the description given to them.
The vehicle pulled over but when the deputy constable tried to get the person to come out of the vehicle, the person refused and fled down Interstate 20 west.
Multiple agencies were involved in the pursuit. McClenny said the pursuit would enter Van Zandt County before the suspect was taken into custody without any other incident west of Canton. | 2022-07-26T22:08:38Z | www.kltv.com | Report of driver waving gun leads to pursuit from Smith to Van Zandt County | https://www.kltv.com/2022/07/26/report-driver-waving-gun-leads-pursuit-smith-van-zandt-county/ | https://www.kltv.com/2022/07/26/report-driver-waving-gun-leads-pursuit-smith-van-zandt-county/ |
TYLER, Texas (KLTV) - With the help of 16 people and almost 300 hours of service, a brand new wheelchair-accessible garden opened today at CampV’s campus in Tyler.
Tomatoes, peppers and herbs are things you can find in the new ADA Eagle Scout Garden. Andrew Bunt, a life scout working toward becoming an Eagle Scout, along with his troop leader and veterans celebrated the opening of the all-access vegetable garden.
“We started in March of this year with the general concept. Building that took about a month to get all the logistics out and make sure everything was smooth. Then we planned it, built the blueprint, funded, built the garden bed and then paperwork. It was a long process but it was definitely worth it,” Bunt said.
CampV is a 20-acre campus that integrates military and civilian resources through one central location. Co-founder Susan Campbell said this is a great addition to their future and helping veterans.
“Very excited about the garden because it’s been on our master plan for probably five years. I never thought about ADA, so what a perfect add that Andrew came up with to help those veterans with disabilities or just older, senior veterans that don’t want to be bending down,” she said.
Guests got to hear more from Bunt, walk the garden and join in fellowship.
CampV’s Executive Director, Travis Gladhill, said this garden will be a place for veterans to cultivate plants, build relationships with one another and focus on mindfulness.
“His communication, his attention to detail, and his dedication are all proof of the outstanding job that his parents, his scout leaders, and this community have done to help turn this young boy into a strong man,” Gladhill said.
Bunt left an open bed for the veterans to choose what they’d like to plant in the garden. The project was fully funded by the help of donors in just under two days. In all, they raised over $2,000. | 2022-07-27T00:23:08Z | www.kltv.com | East Texas Boy Scout completes wheelchair-accessible garden at CampV | https://www.kltv.com/2022/07/26/east-texas-boy-scout-completes-wheelchair-accessible-garden-campv/ | https://www.kltv.com/2022/07/26/east-texas-boy-scout-completes-wheelchair-accessible-garden-campv/ |
County judge suggests policy changes
TYLER, Texas (KLTV) - The Smith County Commissioners Court heard passionate pleas Tuesday morning from several community members concerned about Smith County Animal Control.
“We need change now,” said one woman during public comment.
Frustrated residents and those who work and run local animal rescue operations voiced their concerns to the county judge and commissioners.
“The current administration at the shelter has lost support of many rescues because they’ve become combative and are not fostering good public relations,” said Kat Cortelyou, Director of Operations for the SPCA of East Texas.
SPCA of East Texas President & Founder Deborah Dobbs was among the people who spoke. Her concerns include understaffing, unused shelter space, limited shelter hours, and a controversial stray dog policy.
“This department turns away all public attempts to surrender stray dogs,” Dobbs said. “The policy now is if you fed it, watered it or put it in your car -- it’s yours.”
“Taxpayers are being punished for doing something kind and humane, like rescuing a dog from a busy intersection or a dog that has been dumped in their road,” said Cortelyou.
“That’s just insanity in my opinion,” said Pct. 2 commissioner Cary Nix during a later discussion about the policy. " I mean, we’ve got to change that policy.”
Comments from community members came before budget talks in which commissioners heard from Amber Greene, the county’s animal control supervisor. Among Greene’s requests for the upcoming budget: an additional employee.
“I’m asking for a full time kennel tech position,” Greene said. “With the increase of intakes the additional help is needed to help clean the kennels and to intake dogs in the afternoon.”
Following Greene’s presentation, Smith County Judge Nathaniel Moran noted the animal control department had only used 89-percent of its budget last year. Moran said while he’s on board with more money for things like animal medical services, he is not supportive of the request for another employee.
“There’s a solution to be found on a number of those items,” Moran told Greene. “It’s not just about money or personnel. You’re gonna have to make some some changes to the operations.”
Moran’s recommendations include opening the shelter on Saturdays and closing it on Mondays, a day considered to be slow for animal rescues. He also wants to revive the shelter’s use of jail trusty labor.
“Not to put you on the hot seat,” Moran said to Greene. “But I do want the public to understand that we are going to support you in a reasonable manner to get the job done that you need done. You’re not going to get everything you want. Nobody gets everything they want. But we’re willing to take those requests, and the last three or four budget cycles have not had a major request to move forward with items that are now presented as though we just weren’t willing to do that. And that is just not these case. "
Tuesday’s budget discussion marked the county’s final budget workshop of the year. Moran will file a proposed budget with the county clerk in August. The proposed budget will then be voted on during the Sept. 6 meeting of the Smith County Commissioners Court.
PREVIOUS STORY: Smith County commissioners hear concerns over lack of animal control funding, manpower | 2022-07-27T00:23:14Z | www.kltv.com | Frustrated residents, animal rescues demand change at Smith County Animal Control | https://www.kltv.com/2022/07/26/frustrated-residents-demand-solutions-smith-county-animal-shelter-problems/ | https://www.kltv.com/2022/07/26/frustrated-residents-demand-solutions-smith-county-animal-shelter-problems/ |
GUN BARREL CITY, Texas (KLTV) - A juvenile was killed and two people were arrested after a hit-and-run in Gun Barrel City.
According to a press release, at 2:12 a.m. Wednesday, the Gun Barrel City Police Department received a 911 call of a major traffic collision involving a vehicle versus pedestrian in the area of South Gun Barrel Lane near Stillwater Street. Officers responded to the scene and located a deceased male juvenile.
Mabank police officers also responded to the scene to aid in the investigation.
The suspect vehicle fled the scene south on South Gun Barrel Lane and then west on to Harmon Road. Officers located the suspect vehicle at an address on Harmon Road and took a male suspect, Casey Dylan Jeffrey, 30, and a female suspect, Brooke Leann South, 30, into custody.
Police said the investigation revealed Casey Dylan Jeffrey was driving the suspect vehicle while under the influence of alcohol at the time of the collision. | 2022-07-27T14:52:48Z | www.kltv.com | 2 arrested after juvenile struck and killed in Gun Barrel City | https://www.kltv.com/2022/07/27/2-arrested-after-juvenile-struck-killed-gun-barrel-city/ | https://www.kltv.com/2022/07/27/2-arrested-after-juvenile-struck-killed-gun-barrel-city/ |
TYLER, Texas (KLTV) - A Smith County deputy and another driver were involved in a crash on Lavender Road on Wednesday afternoon.
According to PIO Sgt. Larry Christian with the Smith County Sheriff’s Office, a deputy was traveling southbound on Lavender Road at about 1:45 today, near CR 35. When he reached the crest of the hill, there was a Ford pickup driving wrong way in his lane, headed north.
The deputy took evasive action and was able to make the collision a “glancing blow” crash instead of a major head-on crash. The deputy and the other driver were checked out at a local hospital and released. | 2022-07-27T23:13:15Z | www.kltv.com | Smith County deputy involved in crash Wednesday afternoon | https://www.kltv.com/2022/07/27/smith-county-deputy-involved-crash-wednesday-afternoon/ | https://www.kltv.com/2022/07/27/smith-county-deputy-involved-crash-wednesday-afternoon/ |
East Texas (KLTV) - A heat advisory continues through the evening with temperatures very slowly cooling off. Overnight, temperatures will drop into the upper 70s with fair skies. Mostly sunny to partly cloudy for Friday, but with a little bit better chance for rain. A weak cold front slides into the region and washes out on top of us. This will bring a chance for some scattered showers and thunderstorms to the area Friday afternoon and possibly overnight Friday into Saturday morning. The chance continues for Saturday afternoon and possibly again for a few places on Sunday. This will keep temperatures in the mid 90s this weekend, before warming back to near triple digits by the middle of next week. | 2022-07-28T22:47:14Z | www.kltv.com | Evening Weather at your Fingertips | https://www.kltv.com/2022/07/28/evening-weather-your-fingertips/ | https://www.kltv.com/2022/07/28/evening-weather-your-fingertips/ |
economic expert explains possible recession(KLTV)
“When we are facing a recession, we are in fear of losing our jobs. This time is unique. It’s different this time because we have a potential recession with full employment. We have nearly two jobs available for every unemployed person.” said Dr. Reyes.
Dr. Reyes said “When you think about the pandemic with more than 30% drop of the economy in one quarter. 1.6% and 0.9% is kind of mild.
The last positive is that the average length of a recession is 11 months. Only two quarters, or six months, have passed.
“So far, we don’t know when it formally started and when it will formally end.” said Dr. Reyes.
RECESSION WORRIES KLTV 7 NEWS 10pm 7-28-22 | 2022-07-29T03:25:29Z | www.kltv.com | UT Tyler economic expert eases worries of potential recession | https://www.kltv.com/2022/07/29/ut-tyler-economic-expert-eases-worries-potential-recession/ | https://www.kltv.com/2022/07/29/ut-tyler-economic-expert-eases-worries-potential-recession/ |
TYLER, Texas (KLTV) - An East Texas community is raising awareness of childhood and adolescent trauma and abuse.
Friday, the University Of Texas at Tyler hosted the child and adolescent trauma and abuse conference, to examine the effects of adverse childhood experiences or ACE.
The goal is to establish a system of cooperation and open communication with educators, health care professionals, parents and policymakers.
Presenters discussed childhood mental disorder impacts and intervention tools for schools, the community, and the region.
Next Step Community Executive Director, Brandon Davidson, shares what ACE is with KLTV’s Lexi Vennetti. | 2022-07-29T21:41:31Z | www.kltv.com | WebXtra: UT Tyler hosts child trauma, abuse conference | https://www.kltv.com/2022/07/29/webxtra-ut-tyler-hosts-child-trauma-abuse-conference/ | https://www.kltv.com/2022/07/29/webxtra-ut-tyler-hosts-child-trauma-abuse-conference/ |
East Texas (KLTV) - Evening showers are dying out tonight, but another weak cold front it making its way into East Texas from the north and it will bring better rain chances to all of the area over the next 12 to 24 hours. A few thunderstorms could hold together and affect northern counties tonight, but most of the rain will be tomorrow as the front washes out on top of the region and sparks scattered showers and thunderstorms by afternoon. Some rain could last into the evening before dying out. Areas that see the rainfall, could see high temperatures in the upper 80s and lower 90s Saturday. Clouds and a few showers will be possible Sunday, especially in the first half of the day, but rain chances are gone and we begin to heat up again by early next week. | 2022-07-30T02:15:21Z | www.kltv.com | Overnight Weather at your Fingertips | https://www.kltv.com/2022/07/30/overnight-weather-your-fingertips/ | https://www.kltv.com/2022/07/30/overnight-weather-your-fingertips/ |
By Erin Wides and KLTV Digital Media Staff
LONGVIEW, Texas (KLTV) - Longview officials report that a Saturday afternoon grass fire near Toler Road burned about eight acres, but its cause is not yet undetermined.
Longview Fire Marshal Kevin May said the fire broke out around 2 p.m. off Toler Road near Gilmer Road and that trucks used to respond to grass fires were dispatched.
“They don’t carry a lot of water, so any time we do get in something like this, we’re having to do a lot of water shuttle,” May said. “Fight the fire for a little bit, then they go have to fill up and come back. The fire engines, the ladder trucks, they are not made for off road use like the grass trucks are.”
The big challenge when using the grass fire trucks, May said, is that they are not staffed. So getting them to the fire means they have to shift things around.
“They’re at the far south station, Station Three. There’s one at the far north station, Station Eight and any time that we have to put those trucks into service then we have to take something out of service,” May said.
Responders ultimately used three fire engines, one ladder truck and two grass fire trucks at the scene.
“We can’t emphasize enough right now to people, just be careful. Obviously burning trash, burning stuff like that inside the city limits is against the law. But several of our fires that we have had have started from charcoal pits,” he said. “Either the hot coals falling out of the pit, or they’ve cleaned the pit out and went and dumped it along the fence road and then started a fire.” | 2022-07-31T21:26:57Z | www.kltv.com | Cause not yet determined for Longview grass fire that burned 8 acres | https://www.kltv.com/2022/07/31/cause-not-yet-determined-longview-grass-fire-that-burned-8-acres/ | https://www.kltv.com/2022/07/31/cause-not-yet-determined-longview-grass-fire-that-burned-8-acres/ |
31 days to go in meteorological summer with above normal temperatures forecast to continue
TYLER, Texas (KLTV) - With July 2022 now behind us, we know that it was the third hottest July on record at Tyler Pounds Field. The average temperature for the month of July was 89.2°, which is nearly 5° warmer than our normal July average temperature (84.4°). The first place holder for hottest July? July 2011, with an average temperature of 90.9°.
Hottest Summers on Record(KLTV)
Meteorological summer, which runs from the start of June to the end of August, is now two thirds completed. As things are today, this summer is the second hottest on record, following the summer of 2011 as the hottest. With 31 days, or the entire month of August, to go, this could change - we could see this summer’s ranking drop or rise depending on how temperatures trend for the next month. So far this summer, we’ve had over 30 triple digit days in Tyler, and over 20 in both Longview and Lufkin.
Top 5 Hottest Julys(KLTV)
Triple Digit Days Counter(KLTV)
Looking ahead, above normal temperatures are expected to continue. Our KLTV forecast has multiple days with triple digits over the next seven days, and Climate Prediction Center’s forecast for the month of August includes East Texas in an area likely to see above normal temperatures. Only time will tell of course, but it will be interesting, dare I say fun, to watch as we enter the last month of summer.
7 Day Temperature Trend(KLTV)
CPC August Temperature Outlook(KLTV)
Note: An earlier version of the attached images displayed the “Average High Temperatures” instead of “Average Temperatures”. The Average Temperatures take into account the daily high and low, while the Average High Temperatures value did not. | 2022-08-01T19:46:28Z | www.kltv.com | July 2022 third hottest on record, summer ‘22 second hottest so far | https://www.kltv.com/2022/08/01/july-2022-third-hottest-record-summer-22-second-hottest-so-far/ | https://www.kltv.com/2022/08/01/july-2022-third-hottest-record-summer-22-second-hottest-so-far/ |
East Texas (KLTV) - Another hot, humid afternoon with partly cloudy skies becoming mostly clear tonight. Temperatures will be slow to cool, dropping into the 80s after 10pm and barely into the upper 70s by sunrise tomorrow morning. Partly cloudy, hot and humid again for tomorrow with a breeze out of the south and southwest. Temperatures will hit the triple digits in most places both Wednesday and Thursday afternoons. A very slight chance for rain is back in the forecast for Thursday and will increase slightly on Friday. Though this is the next best chance for rain, it still doesn’t look like everyone in East Texas will see the much needed rainfall. More slight chances are in the forecast for early next week. | 2022-08-02T23:49:42Z | www.kltv.com | Evening Weather at your Fingertips | https://www.kltv.com/2022/08/02/evening-weather-your-fingertips/ | https://www.kltv.com/2022/08/02/evening-weather-your-fingertips/ |
Farmers and ranchers engage with students in the classroom
Farmers and ranchers are taking farming to the classroom for students across Texas.(Texas Farm Bureau)
“It was really cool connecting with the kids, especially like when the tractors come on,” Ferguson says. “They love all the tractors - they know about them but they didn’t know what all the tractors could actually do, so it really just made my lessons like, real world, it helped bring that into my classroom.”
Ferguson says being from a small town, many of her students are a part of 4H and FAA, meaning they show animals and plant gardens. She says this program gave the students a deeper understanding of these subjects.
Farm From School is a semester-by-semester program, currently taking enrollments for the fall. enrollment is open until August 29th. | 2022-08-02T23:49:48Z | www.kltv.com | Farmers and ranchers engage with students in the classroom | https://www.kltv.com/2022/08/02/farmers-ranchers-engage-with-students-classroom/ | https://www.kltv.com/2022/08/02/farmers-ranchers-engage-with-students-classroom/ |
TYLER, Texas (KLTV) - A stretch of road in Tyler that has seen dozens of crashes is another step closer to possibly finding a solution to improve safety. It’s known as the Grande Boulevard reverse or “S” curve and is located between Old Jacksonville Highway and Hollytree Drive in Tyler.
This afternoon the Tyler Traffic Safety Board met to go over findings and recommendations on how to improve the safety of the S-curve on Grande Boulevard. Cameron Williams, the City of Tyler Traffic Engineer said last year they authorized the study.
“We laid out some of the crash information that we found from the report and then the different options that we evaluated, potentially recommending implementation to improve the safety,” Williams said.
The study found that almost 19,000 vehicles drive through the area on a daily basis. Eighty-five percent of drivers are going 45 mph or less, and from 2011-2020 there have been 57 crashes.
Consultants have recommended four options.
“Will look at adding signage which is the LED chevron signs that illuminate as you go through the curve. And adding what’s called a high-friction surface treatment to the pavement that will help increase the friction and make in those wet conditions when people are going through that, give them more traction to minimize a lot of these accidents that we’re seeing.”
Williams said they’re also looking at the potential of relocating an Oncor tower to improve sight visibility going into the curve.
“Traveling westbound on Grande, especially if you’re not familiar with the area, all your visual cues kind of look like the road is going straight. And the tower obstructs some of your visibility of seeing that curve occur,” Williams said.
Concerns about speed limits were also brought up.
“But kind of the bigger thing was the speeds going into there and specifically those wet conditions and that’s where we see a lot of the accidents occurring. So improving the friction through there,” he said.
No action was taken tonight. The next step will be presenting this to the Half Cent Sales Tax board to give them an opportunity to hear the information and then go to city council for discussion and possible action after that. | 2022-08-03T04:23:54Z | www.kltv.com | Tyler Traffic Safety Board reviews recommendations for safety solutions to dangerous curve | https://www.kltv.com/2022/08/03/tyler-traffic-safety-board-reviews-recommendations-safety-solutions-dangerous-curve/ | https://www.kltv.com/2022/08/03/tyler-traffic-safety-board-reviews-recommendations-safety-solutions-dangerous-curve/ |
COFFEE CITY, Texas (KLTV) - Two council members of the City of Coffee City who have turned in letters of resignation say they will return to the meeting Monday to make quorum.
Aldermen Ray Ver Hey and Riley Standifer resigned from city council following a March meeting in which Ver Hey confronted Mayor Frank Serrato over his use of a wifi hotspot and laptop. It was a confrontation which led to Serrato asking police officers to escort Ver Hey out of the meeting.
Ver Hey and Standifer turned in letters of resignation over the coming weeks. Those resignations were never accepted in official meetings. Serrato attempted to hold three meetings over the following months, but there were not enough members present to establish quorum. The city later filed a lawsuit to resolve the situation, asking a court to allow the meeting to be conducted with remaining members or to force the resigned members to attend a meeting so their resignations could be accepted.
Ver Hey said in a text message on Thursday that he would attend Monday night’s meeting.
“After speaking with my attorney more today I have decided it’s in my best interest to also cooperate so I will not have attorney fees from the city lawyer levied against us for non-compliance,” he said. “Bottom line it seems like it could possibly cost us attorney fees to fight everything they are doing or attorney fees from the city attorney if we don’t show up. So either way it can cost us ‘volunteers’ a lot of money just to do what’s right!”
Standifer said the intention is to elect members to fill their spots and then their resignations will be accepted.
The city holds regularly scheduled council meetings on the second Monday of each month. | 2022-08-04T16:57:28Z | www.kltv.com | 2 resigned Coffee City councilmen say they’ll attend Monday meeting | https://www.kltv.com/2022/08/04/2-resigned-coffee-city-councilmen-say-theyll-attend-monday-meeting/ | https://www.kltv.com/2022/08/04/2-resigned-coffee-city-councilmen-say-theyll-attend-monday-meeting/ |
SMITH COUNTY, Texas (KLTV) - The blistering summer heat creates a danger of heat stroke and heat exhaustion, but it can also cause dangers on our East Texas lakes.
East Texas game wardens are reporting extremely low levels, some more than 2-feet lower than normal, on area lakes. These low levels can expose sandbars and underwater obstacles, which can strand or damage boats. There have already been boaters that had to be rescued from similar situations. | 2022-08-04T19:36:06Z | www.kltv.com | WebXtra: Low lake levels in Smith County pose danger to boaters | https://www.kltv.com/2022/08/04/webxtra-low-lake-levels-smith-county-pose-danger-boaters/ | https://www.kltv.com/2022/08/04/webxtra-low-lake-levels-smith-county-pose-danger-boaters/ |
East Texas (KLTV) - A few more clouds today will last into the early evening. Temperatures will once again cool slowly with overnight lows just below 80 degrees. A weak disturbance moves closer to the Texas coastline tomorrow, which should increase the chance for rain for parts of East Texas by Friday afternoon. Scattered showers and a few isolated thunderstorms will be likely late Friday, but not all of East Texas will see the rain. The rain activity should keep temperatures just a hair cooler on Friday. Near average temperatures continue into the weekend with slight chances for rain. These will be just one or two pop up showers each afternoon into early next week with possibly a little better chance for more showers by midweek. | 2022-08-04T23:00:33Z | www.kltv.com | Evening Weather at your Fingertips | https://www.kltv.com/2022/08/04/evening-weather-your-fingertips/ | https://www.kltv.com/2022/08/04/evening-weather-your-fingertips/ |
Lufkin Police Sergeant Eddie Ibarra offers a school zone safety refresher for parents and children.
LUFKIN, Texas (KTRE) - As summer comes to an end and school is about to begin, it’s easy for drivers to forget about school zones.
With kids back in school come students on foot when the bell rings at the end of the day.
Being alert and aware in school zones is important to keep all children safe.
Lufkin Police Sergeant Eddie Ibarra says school zones present a unique dynamic.
“We got kids walking, we got kids on bicycles, we got school buses, and we have the volume of traffic there all coming together at one place at the same time. And, with that unique dynamic we know kids are very unpredictable, and because kids are unpredictable, it kind of falls on us as motorists in the middle of all that dynamic to be aware of what’s going on around us,” Ibarra said.
Ibarra says the department sees the most issues around schools at crosswalks.
“It makes it hard for the kids because of the traffic that is there, and the visibility makes it hard as well. That’s where we have most of our crashes; it’s because people are not adjusting their speed or not paying attention,” Ibarra said.
He stressed drivers should adjust their speed in school zones. In Texas, the speed limit is 20 miles per hour in active school zones. If caught speeding while school zones are active, fines double.
Ibarra also said drivers should stay off of phones to be more aware of their surroundings and encouraged parents to allow themselves extra time to get their children to school.
“The first couple weeks is going to be chaotic, and one of the things is to leave yourself more extra time because of the traffic. It always seems like when you’re running late, it seems like everything goes wrong,” Ibarra said.
He also said children should be aware of their surroundings. “Obviously kids are on their phones and not paying attention,” Ibarra said. He recommended they “be aware and put up their headphones, their cell phones and to stay alert to their surroundings.”
The Lufkin Police Department also says to avoid passing vehicles in school zones and park only in designated areas.
If caught passing a school bus while children are getting off, the fine could be over one thousand dollars.
Check out this back-to-school safety review. | 2022-08-05T00:32:01Z | www.kltv.com | Lufkin Police offer school zone safety refresher for parents, children | https://www.kltv.com/2022/08/04/webxtra-school-zone-refresher-parents-children/ | https://www.kltv.com/2022/08/04/webxtra-school-zone-refresher-parents-children/ |
The man was then taken to a hospital.
LONGVIEW, Texas (KLTV) - A storm system which moved through Longview caused some damage to vehicles and powerlines and forced firefighters to rescue someone trapped by a downed tree.
Longview Fire Captain Kevin May said they were called to the area of Longview Parkway and Audrey Street around 3:15 p.m. He said they had to cut their way through trees, then use extrication tools to get the man out of the vehicle. The man was then taken to a hospital.
May said limbs took powerlines down and firefighters had to work around them until SWEPCO came to the area and turned off the power.
This was near the intersection of Longview Parkway and Audrey Street.(KLTV)
May said power is out in that neighborhood. Firefighters are assessing damage. No other injuries have been reported. | 2022-08-05T21:50:45Z | www.kltv.com | Longview Fire rescues man from vehicle trapped by downed tree | https://www.kltv.com/2022/08/05/quick-storm-causes-property-damage-longview/ | https://www.kltv.com/2022/08/05/quick-storm-causes-property-damage-longview/ |
“Probably climate change, pesticides and perhaps overuse of herbicides,” Bennett said. He also mentioned common practices in our everyday lives, like mowing the lawn, can hurt bees by taking away their food source.
The study will give more knowledge about what humans are doing to affect the bees in different areas according to Bennett, all while training SFA students.
If you’re interested in helping keep the American Bumble Bee, it can be as simple as planting some flowers in your yard or letting a portion of your yard become overgrown with weeds, which are a great food source for bees. | 2022-08-05T23:08:29Z | www.kltv.com | SFA collaborating in bee research in East Texas | https://www.kltv.com/2022/08/05/sfa-collaborating-bee-research-east-texas/ | https://www.kltv.com/2022/08/05/sfa-collaborating-bee-research-east-texas/ |
Police conference sheds new light on Smith County courthouse shooting
Witness accounts from Smith County Courthouse shooting
By Christine Nelson KLTV
Published: Jul. 13, 2005 at 3:19 AM CDT|Updated: Jul. 13, 2005 at 2:23 PM CDT
By Christine Nelson
We’ve heard the 911 tapes, We’ve seen the dash cam video. But there’s more. On Tuesday, police shared new information with fellow law enforcement on the Smith County Courthouse shooting. It happened at the “East Texas Peace Officers Conference”. A roomful of officials from across the state, saw how Tyler PD, the Smith County Sheriff’s Department and others responded to the crime. You could hear a pin drop in the banquet room during the presentation. With the help of KLTV 7 news coverage and other images and sound the public has never seen, peace officers in attendance have a greater understanding of the event that terrorized downtown Tyler on February 24th. Noel Martin, an investigator with Smith County Sheriff’s Department set the scene with background on the shooter. “Suspect information... our suspect was identified as David Hernandez Arroyo. He and his wife had gone through a divorce and there was a hearing going on... concerning child support I believe.”
“This is Rick’s Bar & Grill right here,” says Sgt. Destry Walsworth with the Tyler Police Department pointing at a map of downtown. “When they were coming to the hearing what we found in our investigation, the son was driving the mom to the hearing, 19-year-old David Arroyo Jr. They saw dad park in front of Rick’s and they went ahead and drove and they parked actually over here [in front of the courthouse] when you watch the video if you’ll watch you can see them get out of the car here and he follows them all the way over to the east side [of the courthouse] and parks and he gets out and that’s when he crosses the road and challenges them.”
That begins the never-before-heard exchange among law enforcement on their police radios. Here are some snippets:
“We have shots fired on the square!--we have shots fired on the square, we have someone down!”
“I’ve got people laying on the ground from the northwest corner of the courthouse.”
“Oh man! They’re coming from--it appears to be an Hispanic male.”
“Suspect. Maroon truck. 3, Mary, Frank, 8, David, Northbound Beckham Overpass,” says dispatch giving license plate information.
Remember the unforgettable image of the officer riding on the hood of a car with his rifle. That man is Sergeant Rusty Jacks. He did that because thought the gunman got away on foot. The dash cam video of the same cruiser he was on shows Sergeant Jacks getting in the car and joining other officers in the police chase.
At this point the other cruisers were ordered to let Sergeant Jacks pass them in the pursuit. You’ll understand why in a moment. Sergeant Walsworth explains what happened when Arroyo stopped his truck on Gentry, “John Smith engaged him and he didn’t run into the back of him as everybody thought. The suspect stopped and got out and engaged [Smith]and his patrol car and that’s when [Smith] took off around him. That’s when Sergeant Rusty Jacks - he’s on our special operations team - he actually engaged [Arroyo]. He came out of the passenger side of the vehicle and engaged [Arroyo] as he was moving trying to get back in the truck after shooting at the deputy. We believe the deadly shots were fired by Sergeant Jacks who actually stopped the threat at that point in time. This is a split image showing where Rusty Jacks was in relation to where the suspect was by the time the shots were fired.”
Meanwhile a frantic cry for help at the courthouse continues. Here are snippets from this point in time on the police radio:
“Do we have somebody on the square with the people down?”
“We need more ambulances at the courthouse.”
Dispatch responds: “We got two en route and we’re clearing another one. We’ve got four down already.”
And from a 911 caller: “Our bailiff’s been shot.”
Dispatch: “We’ve got ambulance and fire on the way, where is he now?”
“He’s outside the back.” says the caller.
Dispatch: “The bailiff’s outside the back door?”
The caller responds crying: “I think he went out, he’s been shot and we’re gonna need an ambulance.”
It was revealed that at the crime scene at the courthouse David Arroyo fired 66 rounds. Citizen Mark Wilson fired five rounds from a 45 semi-automatic pistol, and the officers fired 45 rounds.
“That’s a total of 116 rounds fired in less than 2 minutes,” says Martin. And then, the images. Never before seen pictures documenting the behind the scenes investigation. One shows the loaded weapons in Arroyo’s truck including a 244 Remington that was scoped, a photo of inside Arroyo’s bedroom where police say he loaded the weapons before the shooting. Another photo showed the bullet hole that when through the body of the truck before striking Arroyo in the head.
Martin addressed the autopsy saying Arroyo received several gunshot wounds all over his body. He says what the autopsy didn’t show was that Arroyo had several bruises all over his torso as a result of getting hit by the gunfire that was stopped by his body armor.
Because Arroyo withstood so many gunshots that hit him, police say it still surprises them he only had Benadryl in his system. They do know the body armor he had on was not purchased locally. They say the ATF is still trying to trace it. | 2022-08-06T02:28:29Z | www.kltv.com | Police conference sheds new light on Smith County courthouse shooting | https://www.kltv.com/story/3587272/police-conference-sheds-new-light-on-courthouse-shooting/ | https://www.kltv.com/story/3587272/police-conference-sheds-new-light-on-courthouse-shooting/ |
National Weather Service Meteorologist Charlie Woodrum talks about how he identified the damage was caused by a downburst.
LONGVIEW, Texas (KLTV) - After a brief but destructive East Texas storm, the National Weather Service workers have determined a wind “downburst” was responsible.
The storm blew through around 3 p.m. Friday afternoon, hitting an area near East Highway 80 and Loop 281.
Pinehurst Apartments sustained damage when the roofs of several of their units were torn off by wind. Trees were snapped, windows broken out and flying debris hit cars and buildings. | 2022-08-06T20:31:38Z | www.kltv.com | WebXtra: National Weather Service identifies cause of Longview storm damage | https://www.kltv.com/2022/08/06/webxtra-national-weather-service-identifies-cause-longview-storm-damage/ | https://www.kltv.com/2022/08/06/webxtra-national-weather-service-identifies-cause-longview-storm-damage/ |
Boil water notice issued for City of Overton(MGN)
OVERTON, Texas (KLTV) - The Overton Community Public Water System has issued a boil water notice for the city due to a pipe break.
According to officials, a 6″ water line near JW Green on FM 323 suffered a break that has caused the water storage tank to run dry. Water pressure has been lost in the distribution system, compromising water supply to the city.
The boil water notice will be rescinded as soon as repairs are made and water testing is completed.
The Texas Commission on Environmental Quality (TCEQ) notes that children, seniors, and persons with weakened immune systems are particularly vulnerable to harmful bacteria in compromised water, and all customers should follow these directions.
To ensure destruction of all harmful bacteria and other microbes, water for drinking, cooking, and ice making should be boiled and cooled prior to use. The water should be brought to a vigorous rolling boil and then boiled for two minutes.
Once the boil water notice is no longer in effect, the public water system will issue a notice to customers that rescinds the boil water notice. | 2022-08-06T22:11:12Z | www.kltv.com | Boil water notice issued for City of Overton | https://www.kltv.com/2022/08/06/boil-water-notice-issued-city-overton/ | https://www.kltv.com/2022/08/06/boil-water-notice-issued-city-overton/ |
The Lindale Water Supply Corp. says all outdoor watering except for livestock is prohibited as they move into stage II water restrictions.
LINDALE, Texas (KLTV) - Lindale Rural Water is prohibiting all outdoor water use, except for livestock purposes, effective immediately.
Current water consumption is three times more than usual, according to the company. To maintain water pressure, Stage II restrictions are being imposed.
This bans all outdoor water use until further notice, except for care of livestock.
If you have any questions about these measures, please contact the Lindale Rural Water Supply office at (903) 882-3335. | 2022-08-08T17:09:35Z | www.kltv.com | Lindale Rural Water Supply bans all outdoor water use | https://www.kltv.com/2022/08/08/lindale-rural-water-supply-bans-all-outdoor-water-use/ | https://www.kltv.com/2022/08/08/lindale-rural-water-supply-bans-all-outdoor-water-use/ |
LONGVIEW, Texas (KLTV) - KLTVs Jamey Boyum talks with storm victim Ronald Ross who was home at Pinehurst Apartments in Longview when a downburst hit Friday afternoon. His truck was damaged in the storm and he’s trying to figure out the next step. He does not yet have power in his building. | 2022-08-08T20:12:28Z | www.kltv.com | WebXtra: Longview resident unsure of next steps amid storm recovery | https://www.kltv.com/2022/08/08/webxtra-longview-resident-unsure-next-steps-amid-storm-recovery/ | https://www.kltv.com/2022/08/08/webxtra-longview-resident-unsure-next-steps-amid-storm-recovery/ |
TYLER, Texas (KLTV) - Tyler police are on the scene of a reported shooting.
According to Andy Erbaugh, Public Information Officer with the Tyler Police Department, the shooting happened in the 900 block of W. Morris Street.
Erbaugh said one person was shot. It is unknown the extent of their injuries at this time.
Erbaugh said detectives are en route to investigate. | 2022-08-08T21:04:26Z | www.kltv.com | 1 person shot on West Morris Street in Tyler | https://www.kltv.com/2022/08/08/1-person-shot-west-morris-street-tyler/ | https://www.kltv.com/2022/08/08/1-person-shot-west-morris-street-tyler/ |
TYLER, Texas (KLTV) - Smith County commissioners voted Tuesday to call a November bond election for a new courthouse and parking garage.
The motion passed 4 to 1. Pct. 3 Commissioner Terry Phillips was the only commissioner to vote against putting the proposal on the ballot. Philips said he believes now is not the right time with a tough economic situation and soaring inflation.
Smith County Judge Nathaniel Moran recommended both the $160 million courthouse and the $19 million parking garage be put together on the Nov. 8 ballot. The projected tax impact for the courthouse and parking structure would be 3.67 cents, resulting in an increase on tax bills of $73.40 per year for a $200,000 home.
If passed by voters, the new courthouse would replace the current 1955 courthouse, which was designed to include two courtrooms and now holds seven. Moran and other county officials have pointed out security problems with the current building and have said the new courthouse will be designed with a focus on safety and security.
The process first started in 2000 when a task force of community members came up with a master plan that showed the need for a new courthouse, parking structure, sheriff’s administration building and county jail. While a new sheriff’s administration building and jail were eventually built, the county’s 1955 courthouse remained.
Discussions about a new courthouse were revived in 2020 when architects designed a new courthouse following dozens of community and public meetings hosted the county judge and commissioners. Moran had planned on asking the court to call a bond election for the fall of 2020 but put the courthouse project on pause due to the COVID-19 pandemic.
The new courthouse would be located on the east side of the downtown square, where the county has already acquired several properties. The parking structure would be built next to the current Smith County Courthouse Annex.
+ Smith County judge to ask commissioners to call November bond election for new courthouse
+ Smith County judge to ask commissioners to place new courthouse on November ballot
+ Smith Co. commissioners approve purchase of property for new courthouse project
+ Smith County commissioners continue to pause plans for new courthouse
+ ‘Not the right time’: Smith County judge to ask commissioners to pause new courthouse plans
+ Smith County commissioners agree on ‘most practical location’ for new courthouse | 2022-08-09T16:48:32Z | www.kltv.com | Smith County commissioners call November bond election for new courthouse | https://www.kltv.com/2022/08/09/smith-county-commissioners-call-november-bond-election-new-courthouse/ | https://www.kltv.com/2022/08/09/smith-county-commissioners-call-november-bond-election-new-courthouse/ |
The fire is on a large tract of private property.
LUFKIN, Texas (KTRE) - The Lufkin Fire Department is fighting a nine-acre “brushy tree line” fire following a report of smoke at 8 a.m.
The fire is on a large tract of private property west of Southwood near Hoshall Drive, so there was no threat to homes or structures according to City of Lufkin Spokeswoman Jessica Pebsworth.
As of 1 p.m., Texas A&M Forest Service reports the fire is 70 percent contained. | 2022-08-09T18:36:17Z | www.kltv.com | Lufkin Fire fighting 9-acre fire near Southwood Drive | https://www.kltv.com/2022/08/09/lufkin-fire-fighting-9-acre-fire-near-southwood-drive/ | https://www.kltv.com/2022/08/09/lufkin-fire-fighting-9-acre-fire-near-southwood-drive/ |
TYLER, Texas (KLTV) - An early-morning altercation led to a Tyler man being stabbed to death.
An arrest affidavit has revealed new details surrounding the death of Payton Bennett who was allegedly stabbed to death by Chance Archer James Hull in the early morning hours on Sunday. The affidavit states that Hull and his girlfriend were at the house where Bennett and his girlfriend reside in the 1900 block of S. Sneed Ave. in Tyler. The investigator states that at one point during the visit, Hull became upset with his girlfriend and went outside before attempting to sleep in his vehicle. Hull and his girlfriend then had a confrontation and argument outside, during which she fell down. The affidavit notes that during his interview with investigators, Hull claims that his girlfriend fell because he attempted to pick her up and accidentally dropped her.
The investigator states this confrontation led to Bennett coming outside to confront Hull about “being abusive” toward Hull’s girlfriend. Hull denied ever abusing his girlfriend believes that Bennett’s girlfriend told Bennett Hull was being abusive. Hull, who is said to have described Bennett as his “homeboy,” stated that he knew Bennett wanted to fight despite his own attempts to back away from Bennett. The affidavit states the two eventually ended up in the street circling each other with Bennett swinging at, but never hitting, Hull. The investigator states Hull ultimately takes out a pocket knife and swings the knife as Bennett approaches, making contact once with Bennett’s chest.
After 911 is called around 5 a.m. Sunday, multiple people, including Hull, attempt to render aid to Bennett, who ultimately is pronounced dead after being transported to a Tyler hospital.
Hull, 22, of Alba, was arrested Sunday and booked into the Smith County Jail on a charge of murder with a $500,000 bond. | 2022-08-09T21:47:29Z | www.kltv.com | Affidavit: Confrontation over alleged abuse led to stabbing death in Tyler | https://www.kltv.com/2022/08/09/affidavit-confrontation-over-alleged-abuse-led-stabbing-death-tyler/ | https://www.kltv.com/2022/08/09/affidavit-confrontation-over-alleged-abuse-led-stabbing-death-tyler/ |
'How do I know if I was I vaccinated for polio?' and other trending questions about the virus, answered by a doctor
How do I know if I was I vaccinated for polio? Can I get a new vaccine just in case?
I live better in Bali than I did in the U.S. – here's how much it costs | 2022-08-16T20:01:59Z | www.cnbc.com | 'Was I vaccinated for polio?' and other questions, answered | https://www.cnbc.com/2022/08/16/was-i-vaccinated-for-polio-and-other-questions-answered-.html | https://www.cnbc.com/2022/08/16/was-i-vaccinated-for-polio-and-other-questions-answered-.html |
"With this law, the American people won and the special interests lost," Biden said in remarks before he signed the bill.
While introducing the president, Schumer thanked Manchin along with House Speaker Nancy Pelosi, D-Calif., and the White House staff "who gave it their all to finishing this bill."
"Let's be clear. In this historic moment, Democrats sided with the American people and every single Republican in the Congress sided with a special interest in this vote," he said. "Every single one." | 2022-08-17T02:11:02Z | www.cnbc.com | Biden signs Inflation Reduction Act into law, setting 15% minimum corporate tax rate | https://www.cnbc.com/2022/08/16/watch-live-biden-to-sign-inflation-reduction-act-into-law-setting-15percent-minimum-corporate-tax-rate.html | https://www.cnbc.com/2022/08/16/watch-live-biden-to-sign-inflation-reduction-act-into-law-setting-15percent-minimum-corporate-tax-rate.html |
UBSG-CH
Traders, brokers and clerks on the trading floor of the open outcry pit at the London Metal Exchange in London, U.K., on Monday, Feb. 28, 2022.
Commodities and gold a good hedge against central bank risks, says State Street
Goldman Sachs' Jeff Currie on energy markets: There's a slowdown occurring, but not a contraction | 2022-08-17T06:44:30Z | www.cnbc.com | Wall Street analysts bet on another commodity rally before year-end | https://www.cnbc.com/2022/08/17/wall-street-analysts-bet-on-another-commodity-rally-before-year-end.html | https://www.cnbc.com/2022/08/17/wall-street-analysts-bet-on-another-commodity-rally-before-year-end.html |
Norway's central bank, also known as Norges Bank, in Oslo, Norway.
Norway's sovereign wealth fund, the largest in the world, made a loss of 1.68 billion Norwegian kroner ($174 billion) in the first half of 2022, as stocks markets more broadly saw a tumultuous six months.
The $1.3 trillion fund returned a negative 14.4% during the period, as stocks and bonds reacted violently to global recession fears and skyrocketing inflation. But the fund's return was 1.14 basis points better than the return on the benchmark index, the country's Norges Bank said Wednesday, equivalent to 156 billion kroner.
The loss is on trend with the U.S. stock market experiencing its worst first-half since the 1970s. Inflation, interest rate hikes and war in Europe seriously dented the major U.S. indexes, with the Dow Jones Industrial Average losing more than 15% in the first six months of the year, the S&P 500 down more than 20% and the Nasdaq Composite down almost 30%. | 2022-08-17T11:15:55Z | www.cnbc.com | Norway's sovereign wealth fund loses $174 billion in first half | https://www.cnbc.com/2022/08/17/norways-sovereign-wealth-fund-loses-174-billion-in-first-half.html | https://www.cnbc.com/2022/08/17/norways-sovereign-wealth-fund-loses-174-billion-in-first-half.html |
Bed Bath & Beyond shares tumbled in extended trading Wednesday after activist investor Ryan Cohen said in a filing he intends to sell his entire stake in the retailer through his firm RC Ventures.
The aggregate purchase price of the 7.78 million shares directly owned by RC Ventures is roughly $119.4 million, excluding brokerage commissions, according to earlier SEC filings. And the aggregate purchase price of the firm's call options exercisable into 1.67 million shares owned directly by RC Ventures is about $1.8 million, also excluding those commissions.
Call options give a buyer the right, but not the obligation, to purchase stock at a set strike price. Cohen's options were for strike prices of $60, $75 and $80.
More recently, Bed Bath has been facing liquidity issues, its coffers drying up ahead of the holiday season and during the back-to-school and back-to-college selling periods.
Why there could be a wave of retail bankruptcies | 2022-08-17T22:05:52Z | www.cnbc.com | Bed, Bath & Beyond shares fall after investor Ryan Cohen reveals intent to sell stake | https://www.cnbc.com/2022/08/17/bed-bath-beyond-shares-fall-more-than-10percent-after-investor-ryan-cohen-reveals-intent-to-sell-entire-stake.html | https://www.cnbc.com/2022/08/17/bed-bath-beyond-shares-fall-more-than-10percent-after-investor-ryan-cohen-reveals-intent-to-sell-entire-stake.html |
Iran's Foreign Minister Hossein Amir-Abdollahian (R) meets with Josep Borell, the High Representative of the European Union for Foreign Affairs and Security Policy (L), at the foreign ministry headquarters in Iran's capital Tehran on June 25, 2022.
The regime appears to have found a winning formula: widening its nuclear footprint while narrowing the inspections and monitoring regime.
Senior Fellow, Foundation for Defense of Democracies
'We're all worried about more confrontation' between Iran and others, says the U.S. special envoy for Yemen
RBC Capital's Croft: Additional oil supply from Iran would be helpful with Russia in the balance | 2022-08-18T07:19:57Z | www.cnbc.com | A renewed Iran nuclear deal may be closer than ever, but problems remain | https://www.cnbc.com/2022/08/18/a-renewed-iran-nuclear-deal-may-be-closer-than-ever-but-problems-remain.html | https://www.cnbc.com/2022/08/18/a-renewed-iran-nuclear-deal-may-be-closer-than-ever-but-problems-remain.html |
Ryan Cohen's RC Ventures sells entire Bed Bath & Beyond stake
Shares of the stock fell 33% in extended trading, adding to a loss of nearly 20% during Thursday's regular trading session.
In a statement on Wednesday, Bed Bath & Beyond said it had reached a "constructive agreement" with RC Ventures in March and was exploring potential changes to its financial structure. | 2022-08-18T20:59:37Z | www.cnbc.com | Activist investor Ryan Cohen completes planned sale of Bed Bath & Beyond stake, stock falls 30% | https://www.cnbc.com/2022/08/18/activist-investor-ryan-cohen-completes-planned-sale-of-bed-bath-beyond-stake.html | https://www.cnbc.com/2022/08/18/activist-investor-ryan-cohen-completes-planned-sale-of-bed-bath-beyond-stake.html |
A federal judge said parts of the affidavit used to obtain a search warrant for former President Donald Trump's home Mar-a-Lago can be unsealed.
The Justice Department had asked Magistrate Judge Bruce Reinhart not to unseal the affidavit, arguing that it could compromise the national security probe.
The government's investigation into the records seized from Trump's Florida residence is still in its "early stages," argued Jay Bratt, head of a DOJ counterintelligence team.
Reinhart disagreed, saying he believed "there are portions of it that can be unsealed."
In a written order later Thursday, Reinhart wrote, "As I ruled from the bench at the conclusion of the hearing, I find that on the present record the Government has not met its burden of showing that the entire affidavit should remain sealed."
The search warrant itself had been publicly released with the DOJ's approval last week. That document and attachments indicated that the agents were looking for materials related to three criminal statutes, one of which was part of the Espionage Act. | 2022-08-19T00:01:24Z | www.cnbc.com | Affidavit used in search of Trump's Mar-a-Lago to be partially unsealed, judge says | https://www.cnbc.com/2022/08/18/affidavit-used-in-search-of-trumps-mar-a-lago-to-be-partially-unsealed-judge-says.html | https://www.cnbc.com/2022/08/18/affidavit-used-in-search-of-trumps-mar-a-lago-to-be-partially-unsealed-judge-says.html |
"We're really just scratching the surface of what we're going to see [in the metaverse]," said Randi Zuckerberg, the founder and CEO of Zuckerberg Media.
A smooth and "complete decentralization" of Web3 is not yet a reality, said Randi Zuckerberg, referring to a system in which users rather than companies have ownership of services and data.
What is Web3? We ask the man who invented the word | 2022-08-19T00:02:07Z | www.cnbc.com | Web3 is in ‘chaos,’ metaverses in walled gardens: Randi Zuckerberg | https://www.cnbc.com/2022/08/18/web3-is-in-chaos-metaverses-in-walled-gardens-randi-zuckerberg.html | https://www.cnbc.com/2022/08/18/web3-is-in-chaos-metaverses-in-walled-gardens-randi-zuckerberg.html |
A citizen wearing a breathing mask to escape heat rides on the road on May 23, 2019 in China. The electricity load in the Chinese province of Henan reached a new record on Monday, primarily driven by air-conditioning demand, as scorching heat waves spread across regions north of the Yangtze river. | 2022-08-19T00:02:13Z | www.cnbc.com | China's heatwave could have knock-on effect on its economy: Economist | https://www.cnbc.com/2022/08/19/chinas-heatwave-could-have-knock-on-effect-on-its-economy-economist-.html | https://www.cnbc.com/2022/08/19/chinas-heatwave-could-have-knock-on-effect-on-its-economy-economist-.html |
Apple, Amazon and Morgan Stanley are in the headlines. Here's our take on the news
There's been incrementally positive headlines involving a trio of Club stocks — Amazon (AMZN), Morgan Stanley (MS) and Apple (AAPL). Here's our take on the news and what it means for our investment outlook. Amazon hikes seller fees through holidays The news: Amazon is taking another step to combat inflationary pressures across its e-commerce operations. Between Oct. 15 and Jan. 14, 2023, third-party sellers who use Amazon's fulfillment service will be charged 35 cents per item sold in the U.S. and Canada. This will be added on to traditional fees they pay to use the program known as Fulfillment by Amazon (FBA), through which the company retrieves, packs and ships items on behalf of the third-party sellers. In an email to sellers obtained Tuesday by CNBC's Annie Palmer , Amazon said the reason it's putting this holiday surcharge in place for the first time is because "expenses are reaching new heights." The Club's take: This is a welcome development for investors, representing yet another step from management to bring soaring costs under control as it pledged to do. Remember: Amazon announced an increase to the price of a Prime membership in February. Then, in April, it implemented a fuel and inflation surcharge on existing FBA fees after weathering $6 billion in incremental costs in its January-to-March quarter. In the April-to-June quarter, Amazon saw about $4 billion in incremental costs tied partly to higher fuel costs and freight rates. Those inflationary pressures, coupled with Amazon's own overexpansion issues as it sought to meet Covid-fueled online-shopping demand, really dented the company's profitability. We're willing to be patient with management as it works to restore margins, as we've said before, but that makes this temporary increase to seller fees particularly encouraging. Its impact should be felt pretty much immediately, boosting not only top-line revenue but earnings, too. We like the stock here. That said, just how much of a benefit this new fee may provide is not entirely clear. Estimates vary. UBS wrote in a note to clients that it could add to $870 million to fourth-quarter revenue, based on its assumptions around the number of products third-party merchants will sell in the period. UBS analysts acknowledge 100% of the holiday fee could flow through to the bottom line, in which case they project Amazon could deliver an operating margin of 4.6% in Q4, up from current projections of 4.1%. Morgan Stanley, for its part, forecasts a $660 million boost to earnings before interest and taxes with $570 million in Q4 and $90 million Q1 2023. Morgan Stanley files to launch ETFs The news: Morgan Stanley plans to launch four exchange-traded funds, according to a new filing with the Securities and Exchange Commission . The ETFs all fall under the umbrella of the environmental, social and governance (ESG) movement. Here are the names of the four ETFs, per the SEC filing: Calvert International Responsible Index ETF Calvert US Large-Cap Core Responsible Index ETF Calvert US Large-Cap Diversity, Equity and Inclusion Index ETF Calvert US Mid-Cap Core Responsible Index ETF As indicated above, the brand associated with the ETFs is Calvert, a firm that's now part of Morgan Stanley Investment Management. Calvert had been owned by asset manager Eaton Vance, which Morgan Stanley acquired last year as part of the bank's revenue diversification plan. Each of the ETFs are designed to track the underlying stock index created by Calvert, which calls itself a "pioneer" in responsible investing over the past four decades. The Club's take: It's hard to discern the immediate financial impact that these four ETFs could provide to Morgan Stanley — assuming they clear the regulatory process and get listed on a U.S. exchange. The primary reasons for the uncertainty is we don't yet know what the funds' expense ratios will be and what investors' reception to the ETFs will be. ESG-focused ETFs are a crowded space, in general. However, we find the news of these ETF filings noteworthy because it speaks to a central part of our investment thesis in Morgan Stanley: revenue diversification. Under the leadership of CEO James Gorman, Morgan Stanley is trying to be less dependent on the traditional Wall Street businesses of investment banking and trading, which, as we've seen lately, can be prone to cyclical downturns. The firm has bought Eaton Vance and E-Trade to accomplish a shift toward the more stable, fee-based revenue streams associated with asset management. It's a key reason why we own Morgan Stanley and have been willing to stick with the stock this year despite the economic slowdown fears that have weighed on the group. We learned in March that Morgan Stanley planned to launch an ETF platform this year , and this fresh SEC filing appears to signal additional progress in doing that. Morgan Stanley's transformation is a multi-year story, requiring investor patience, but nevertheless we like to see these encouraging updates. Plus, a $20 billion buyback program and a dividend yield of roughly 3.4% pays us to wait . Apple may move more production out of China The news: Apple Watch and MacBook assembly could begin to take place in Vietnam for the first time, Nikkei Asia reported Wednesday. Citing three sources familiar with the situation, the newspaper said Foxconn and Luxshare Precision Industry are doing "test production" of the Apple Watch at facilities in northern Vietnam. With regards to the MacBook, Nikkei Asia said it learned from two sources that the California-based tech giant has asked suppliers to establish a test production line in the country. Both products have historically been made in China. Outside of China, Vietnam is Apple's second-largest country for production. The Club's take: Apple has been shaking up its manufacturing footprint in recent years, and Wednesday's Nikkei report indicates there could be even more on the horizon. From an investment standpoint, that theoretically makes the company's supply chain more resilient and less vulnerable to large disruptions in one place. In 2020, Apple reportedly began to make some AirPods in Vietnam , and a few months ago Nikkei reported it also was moving some iPad production to the Southeast Asian nation. Now, there's the Apple Watch and MacBook developments. A key accelerant of Apple's supply chain diversification was the U.S.-China trade war instigated by former President Donald Trump, and the Covid pandemic appears to have added to the urgency. In the company's latest quarter, for example, Apple "lost the primary source of supply for Mac units" because of virus lockdowns in Shanghai, CEO Tim Cook said on the post-earnings call. Those supply constraints ultimately put a damper on MacBook sales, according to the company. Viewed through that lens, even if the shift of production to Vietnam doesn't happen overnight, we would be pleased to see more resiliency could be coming to Apple's supply chain. (Jim Cramer's Charitable Trust is long MS, AMZN, AAPL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Packages move along a conveyor at an Amazon fulfillment center on Cyber Monday in Robbinsville, New Jersey, Nov. 29, 2021. | 2022-08-19T04:51:50Z | www.cnbc.com | Apple, Amazon and Morgan Stanley are in the headlines. Here's our take on the news | https://www.cnbc.com/2022/08/17/apple-amazon-and-morgan-stanley-are-in-the-headlines-heres-our-take-on-the-news.html | https://www.cnbc.com/2022/08/17/apple-amazon-and-morgan-stanley-are-in-the-headlines-heres-our-take-on-the-news.html |
The meme stocks are back, at least for now, says WSJ's Banerji
Shares of the challenged retailer surged 11.8%, building on its enormous gains for August. Bed Bath & Beyond has already seen five days in August with moves greater than 20%, and ended Wednesday up more than 300% for the month.
Bed Bath & Beyond is connected to GameStop through Ryan Cohen, the billionaire who serves as GameStop's chairman. On Monday, an amended regulatory filing from Cohen's venture capital firm RC Ventures showed that he owned nearly 12% of the shares of Bed Bath & Beyond as of April 21, including positions in distant out-of-the-money call options. The options serve as bets that the stock will rise significantly before January, allowing Cohen to then buy shares at a discount.
According to the filing, Cohen's position in Bed Bath & Beyond has not changed since he first revealed his stake earlier this year, but Bed Bath & Beyond has lowered its total shares outstanding, making Cohen's stake a higher percentage of the company. | 2022-08-19T04:51:56Z | www.cnbc.com | Bed Bath & Beyond surges again on Wednesday, continuing August meme rally | https://www.cnbc.com/2022/08/17/bed-bath-beyond-surges-again-on-wednesday-continuing-august-meme-rally.html | https://www.cnbc.com/2022/08/17/bed-bath-beyond-surges-again-on-wednesday-continuing-august-meme-rally.html |
Warren Buffett's Berkshire Hathaway more than tripled his bet on Ally Financial in the second quarter, giving the conglomerate a near 10% stake in this under-the-radar U.S. auto and home lender. Berkshire ramped up its Ally holdings to about 30 million shares and was worth more than $1 billion at the end of June, according to a regulatory filing. The conglomerate now has a 9.6% stake in the company, making it the second biggest shareholder after index giant BlackRock, according to InsiderScore. Ally Financial has benefited immensely from a surge in consumer demand for new and used cars during the pandemic, resulting in an over 50% gain in share price from 2020 to 2021. However, the stock is down more than 20% this year as the auto market started to stabilize and higher interest rates dented consumer appetite. Still, Ally's 2022 decline made the stock cheap relative to its peers, which could have appealed to the legendary value investor. The stock now trades at only 1.0x tangible book value, according to Piper Sandler analyst Kevin Barker. The conglomerate first bought just under 9 million Ally shares, and the Omaha-based giant significantly added to the stake during the following quarter when the stock dropped more than 20%. The dip-buying action has been a classic move for Buffett, who explained his thinking during this year's annual shareholder meeting. "We have not been good at timing. We've been reasonably good at figuring out when we were getting enough for our money," Buffett said in Omaha in April. "We always hoped it would go down for a while so we could buy more." Berkshire has been a net buyer for stocks for three straight quarters, according to regulatory filings. The conglomerate also increased its massive Apple holding , while ramping up its Occidental and Chevron bets. "Buffett was true to his word as every stock with increased holdings this quarter was either a new addition in the previous quarter or had additional shares purchased in the first quarter," said Bill Stone, CIO of The Glenview Trust Company and a Berkshire shareholder. Robust demand Some analysts believe demand for auto loans remained strong, which creates a tailwind for Ally. The company originated $13.3 billion in retail auto originations in the second quarter, representing the highest quarterly amount since 2006, JPMorgan analyst Kabir Caprihan pointed out. "Consumer demand for auto loans remains robust, and the rising rate environment coupled with the supply chain challenges are expected to benefit net interest income growth," Caprihan said in a note. The stock is generally well liked among Wall Street analysts, too, with more than three-quarters of those covering Ally rating it a buy. Ally was founded in 1919 by General Motors, formerly known as the General Motors Acceptance Corporation (GMAC), to provide financing to automotive customers. Ally remained GM's car financing arm until 2010 when the company was spun off and eventually rebranded. While Berkshire's stake in Ally is just under 10% now, it's not hard for some to see how the auto loan business could go hand in hand with the conglomerate's core insurance business. Berkshire owns auto insurance giant Geico. At the end of last year, Ally acquired credit card company Fair Square Financial for $750 million, seeking to expand its scope of business. —CNBC's Michael Bloom contributed reporting.
Sarah Minan hour ago | 2022-08-19T04:52:02Z | www.cnbc.com | Behind Warren Buffett’s increasing bet on this under-the-radar American lender | https://www.cnbc.com/2022/08/17/behind-warren-buffetts-increasing-bet-on-this-under-the-radar-american-lender.html | https://www.cnbc.com/2022/08/17/behind-warren-buffetts-increasing-bet-on-this-under-the-radar-american-lender.html |
Cisco Systems (CSCO) reported better-than-expected quarterly results after the closing bell Wednesday. Revenue in the computer network equipment company's fiscal fourth quarter was flat year over year at $13.1 billion, beating estimates on FactSet of $12.7 billion. Adjusted quarterly earnings decreased 1% year over year to 83 cents per share, beating estimates by a penny. Adjusted gross margin fell to 63.3%, slightly below estimates of 64.7%; adjusted operating margin dropped to 32.4%, slightly below estimates of 32%. One reason why Cisco reported good numbers was an improving supply chain. Back in April, Cisco's supply chain was challenged due to Covid related lockdowns in China. The company could not source enough semiconductor and power supplies to ship out product and the attached software. The good news is those supply constraints began to ease slightly in the back half of the just-completed quarter, and they continued to improve at the start of the company's current fiscal first quarter. Bottom line Expectations for Cisco were low heading into this quarter due to uncertainty around its supply chain. Although the company has yet to see any signs of cracks in demand, the biggest question mark centered on how quickly the availability of key components will bounce back after China reemerged from lockdowns. We got our answer Wednesday evening as Cisco navigated its challenges slightly better than anticipated, leading to both revenue and adjusted earnings-per-share upside. Cisco believes the combination of its record product outlook, remaining performance obligation (RPO) of more than $31 billion, and the low cancellation rates — which are still below pre-pandemic levels despite all the macro uncertainty — provides the company with increased visibility and strong revenue growth as it makes its way into its fiscal 2023 year. The better-than-expected quarter and solid forward guidance were helping the Dow stock bounce more than 4% to just under $49 in after-hours trading. While the stock remains cheap on a price-to-earnings basis and the dividend yield of 3% pays us as we wait for the supply chain pressures to ease further, we are keeping our 2 rating on the stock . Outlook Management introduced guidance for their full fiscal year 2023. They expect revenue at Cisco to increase 4% to 6% year over year, implying total revenue of about $54.18 billion. This is higher than estimates of $52.7 billion. Adjusted full-year earnings per share are expected to be in the range of $3.49 to $3.56, which at a midpoint of $3.53 is in line with estimates and represents growth of about 5%. For the first quarter of fiscal 2023, management expects revenue to grow 2% to 4% year over year. The midpoint of this guide implies revenue of $13.29 billion, which is higher than estimates of $12.8 billion. Adjusted operating margin is expected to be in the range of 31.5% to 32.5%, below estimates of 33.2%. Management expected adjusted earnings per share in their first quarter to be 82 cents to 84 cents, which at the midpoint of 83 cents is a penny short of estimates, So we see a common theme here of the company guiding higher on revenues but margin pressure isn't resulting in earnings upside. Although Cisco is benefitting from price increases, higher costs driven primarily by higher component freight and logistics costs are eating into margins. Encouragingly, those cost headwinds are expected to ease as the fiscal year progresses. Companywide Q4 results Total Product revenue was flat year over year at $9.69 billion in the quarter, beating estimates of $9.41 billion. Cisco breaks down its product revenue into five main buckets: Secure Agile Networks, Collaboration, End-to-End Security, Internet for the future, and Optimized Applications Experience. Secure Agile Networks — which includes sales of campus and data center switches (hardware used to connect devices within a network), enterprise routing, and wireless products — saw revenue decline 1% year over year to $6.09 billion but beat estimates of $5.86 billion. Switching declined in data center and campus due to supply constraints. Collaboration — Webex video conferencing and contact center — saw revenue grow 2% year over year to $1.16 billion, edging estimates of nearly $1.1 billion. End-to-End Security — cybersecurity — saw revenue grow 20% year over year to $984 million, beating estimates of $892 million. Internet for the future — routed optical networking, public 5G, and silicon — saw revenue decline 10% year over year to $1.26 billion, missing estimates of $1.36 billion. Optimized Applications Experience — including some software as service-based offerings — saw revenue increase 8% year over year to $185 million, basically in line with estimates. Services revenue was flat year over year to $3.41 billion, edging estimates of $3.34 billion. Here are some other key items from the quarter we think are worth mentioning. Total product orders in fiscal Q4 fell 6% year over year but it is good to remember that this quarter last year had the most product orders in company history. Clearly demand is still quite healthy because product orders were up more than 15% sequentially. Also Cisco ended the quarter and fiscal year with a product backlog at a record. Cisco continues to see strong demand in its web scale business, where product orders have grown more than 50% on a trailing four quarter basis. Here, Cisco is benefitting from the need of it is customers to build out massively scalable cloud networks. As a side note, Cisco's cloud vertical business is now approaching $1 billion in annual sales from "pretty close to nothing" two to three years ago, according to CEO Chuck Robbins. Total software revenue fell 2% year over year to $3.9 billion . Total subscription revenue for the quarter was $5.8 billion, up 2%. Total Q4 subscription revenue represented 44% of Cisco's total revenue and 83% of Cisco's total software revenue was subscription based, an increase of 2 percentage points year over year. Annualized recurring revenue , or ARR, a subscription metric that represents the annualized revenue run-rate of active subscriptions, term licenses, and maintenance contracts, increased 8% to $23 billion. The RPO, which helps show how much future revenue is under contract, increased 2% to $31.5 billion. The total short-term RPO, meaning revenue the company expects to recognize in the next 12 months, increased 4% to $16.9 billion. We keep a close eye on Cisco's software metrics because they help us gauge the health of the business and the progress made on the company's business transition from lumpy hardware sales, which are a low price-to-earnings multiple business, and perpetual software, which customers buy once, to higher-margin, more predictable recurring software sales, which are something investors typically are willing to pay a premium for. Capital allocation, cash flow Cisco generated $3.5 billion of free cash flow in the quarter, down 19% year over year and a miss versus estimates of $4.3 billion. The company stepped up the buyback as the stock struggled this quarter. After only repurchasing $252 million worth of stock in the previous quarter, Cisco bought back $2.4 billion worth of shares at an average price of $44.02 this time around. Cisco currently has $15.2 billion remaining in its current authorization. Cisco also returned $1.6 billion to shareholders through it is quarterly 38 cent per share dividend, which translates to a dividend yield of about 3.26% based on Wednesday's closing stock price. (Jim Cramer's Charitable Trust is long CSCO. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
A runner jogs past Cisco Systems headquarters in San Jose, California, U.S., on Monday, Feb. 8, 2021. | 2022-08-19T04:52:47Z | www.cnbc.com | Cisco Systems' solid quarter benefited from easing supply chain constraints | https://www.cnbc.com/2022/08/17/cisco-systems-solid-quarter-benefited-from-easing-supply-chain-constraints.html | https://www.cnbc.com/2022/08/17/cisco-systems-solid-quarter-benefited-from-easing-supply-chain-constraints.html |
Feds call for water cutbacks 'to avoid a catastrophic collapse' of Colorado River
Arizona and Nevada ordered to reduce water usage as drought worsens
A bathtub ring watermark at Hoover Dam/Lake Mead, the country's largest man-made water reservoir, formed by the dam on the Colorado River in the Southwestern United States, has dropped 2 inches every day since February (26 feet in one year), is viewed on July 12, 2022 near Boulder City, Nevada. The lake, a national recreation area, located within the states of Nevada and Arizona 24 miles east of the Las Vegas Strip, serves water to the states of Arizona, California, Utah, Colorado, and Nevada, as well as parts of Mexico, providing fresh water to nearly 20 million people and large swaths of farmland. (Photo by George Rose/Getty Images) | 2022-08-19T04:53:38Z | www.cnbc.com | Feds call for water cutbacks as Colorado River is in 23-year drought | https://www.cnbc.com/2022/08/17/feds-call-for-water-cutbacks-as-colorado-river-is-in-23-year-drought.html | https://www.cnbc.com/2022/08/17/feds-call-for-water-cutbacks-as-colorado-river-is-in-23-year-drought.html |
Democratic U.S. Senate candidate John Fetterman speaks during a rally in Erie, Pennsylvania, August 12, 2022.
"My wife wants some vegetables for a crudites, right?" Oz says as he makes his way through the store's produce section, picking up packages of vegetables, guacamole and salsa, and reading their prices.
Fetterman's social media accounts this week have relentlessly mocked Oz for his use of the high-brow term crudites, a French word that's pronounced kroo-de-tay. "If this looks [like] anything other than a veggie tray to you, then I am not your candidate," said Fetterman, holding up a plastic container of vegetables, in a video he tweeted out Tuesday. | 2022-08-19T04:53:45Z | www.cnbc.com | Fetterman says Dr. Oz crudites video spurred $500,000 donation blitz | https://www.cnbc.com/2022/08/17/fetterman-says-dr-oz-crudites-video-spurred-500000-donation-blitz.html | https://www.cnbc.com/2022/08/17/fetterman-says-dr-oz-crudites-video-spurred-500000-donation-blitz.html |
On Monday, the actor publicly addressed the ongoing controversy surrounding their recent arrests and allegations of disturbing behavior. Miller, who leads Warner Bros. Discovery's "The Flash," due out in theaters June 2023, said they'd "recently gone through a time of intense crisis" and has begun to undergo treatment for "complex mental health issues."
The company didn't immediately respond to a request for comment.
Ryder's fall was slightly less serious. She was arrested for shoplifting in 2001, but it was no less damaging. The actress was almost uninsurable following the arrest, which led to a nearly five-year hiatus from acting. She picked up supporting roles over the next decade in films like "Star Trek" and "Black Swan," but her big comeback was 2016's "Stranger Things."
Any time you hear words like grooming, or trafficking or suggestions of impropriety with minors, the stakes are incredibly, incredibly high.
"It's not a get-out-of-jail-free card," he said. | 2022-08-19T04:54:03Z | www.cnbc.com | 'Flash' star Ezra Miller's apology is not a get-out-of-jail-free card, experts say | https://www.cnbc.com/2022/08/17/flash-star-ezra-miller-apology-not-enough.html | https://www.cnbc.com/2022/08/17/flash-star-ezra-miller-apology-not-enough.html |
U.S. President Joe Biden holds out his pen to U.S. Senator Joe Manchin (D-WV) as Senate Majority Leader Chuck Schumer (D-NY) and U.S. House Majority Whip James Clyburn (D-SC) look on after Biden signed "The Inflation Reduction Act of 2022" into law during a ceremony in the State Dining Room of the White House in Washington, August 16, 2022. | 2022-08-19T04:54:43Z | www.cnbc.com | Inflation Reduction Act: How the bill could save you money | https://www.cnbc.com/2022/08/17/inflation-reduction-act-how-the-bill-could-save-you-money.html | https://www.cnbc.com/2022/08/17/inflation-reduction-act-how-the-bill-could-save-you-money.html |
Lowe's on Wednesday reported mixed second-quarter earnings Wednesday.
The company said improved operations offset lower-than-expected sales that were hurt by a shortened spring.
Lowe's saw an increase in sales to professionals such as contractors and electricians.
A customer pushes a shopping cart towards the entrance of a Lowe's store in Concord, California, on Tuesday, Feb. 23, 2021.
Lowe's on Wednesday reported second-quarter earnings that beat analysts' expectations as the company said improved operations offset lower-than-expected sales that were hurt by a shortened spring.
"Rather than the DIY consumer trading down like you hear from some retailers, in many cases we were seeing the opposite," Ellison told CNBC. "The customer's actually trading up to innovation and trading up for new."
Lowe's saw an increase in sales to professionals such as contractors and electricians. Ellison said the company's new loyalty programs are attracting more professional contractors and driving repeat visits. Professionals who were enrolled in the program spent three times more than those not enrolled, he said.
Though homebuilder sentiment turned negative this month, Ellison remains optimistic about the state of home improvement. He noted the age of homes, the level of disposable income, and housing price appreciation all suggest continued strength in Lowe's home improvement business.
Lowe's said it now expects total and comparable sales for the year toward the bottom of its outlook range. It had forecast sales of $97 billion to $99 billion and comparable sales to be down 1% to up 1%. Operating income and earnings are expected to be toward the top end of its previous forecast.
"We expect our DIY customer and demand to improve in the back half of the year," Ellison told CNBC. "We also expect to continue to have accelerated growth with the pro customer."
For the three month period ended July 29, Lowe's reported a net income of $2.99 billion, down from $3.02 billion last year. Net sales slipped to $27.48 billion, from $27.57 billion a year ago.
Lowe's has a different customer mix than Home Depot, which tends to get more of its sales from home professionals. Lowe relies more heavily on do-it-yourself customers, which makes it more vulnerable to shifts in demand.
"Our results in the first half were disproportionately impacted by our 75% DIY customer mix, which was partially offset by our double-digit Pro growth for the ninth consecutive quarter," Ellison said in a statement. | 2022-08-19T04:55:10Z | www.cnbc.com | Lowe's (LOW) earnings Q2 2022 | https://www.cnbc.com/2022/08/17/lowes-low-earnings-q2-2022.html | https://www.cnbc.com/2022/08/17/lowes-low-earnings-q2-2022.html |
Mark Cuban's advice for his younger self and anyone starting their career: Learn to 'be a salesperson'
Team owner Mark Cuban of the Dallas Mavericks reacts as the Dallas Mavericks take on the Utah Jazz in the fourth quarter of Game Five of the Western Conference First Round NBA Playoffs at American Airlines Center.
Kevin O'Leary's top job interview tip | 2022-08-19T04:55:16Z | www.cnbc.com | Mark Cuban’s advice for his younger self: 'Be a salesperson’ | https://www.cnbc.com/2022/08/17/mark-cubans-advice-for-his-younger-self-be-a-salesperson-.html | https://www.cnbc.com/2022/08/17/mark-cubans-advice-for-his-younger-self-be-a-salesperson-.html |
Pioneer CEO says the oil company will keep returning most of its cash flow to investors
Pioneer Natural Resources (PXD) CEO Scott Sheffield said the oil company plans to continue returning most of its cash flow to shareholders, noting the "growth days of the industry are over." That was just one of the takeaways from Sheffield's wide-ranging interview with CNBC's Jim Cramer on Wednesday. Sheffield, who founded Pioneer 25 years ago, is coming off a great quarter in which the Club holding beat on both the top and bottom lines. The company also returned more than 95% of its free cash flow to investors — a move Sheffield said is key to retaining shareholders. Here's a full breakdown of what Sheffield had to say, including his thoughts on the Democrats' recently passed Inflation Reduction Act and opportunities in natural gas. Methane tax Sheffield told Cramer he's not particularly concerned about the tax on methane emissions that was included in the Democrat's Inflation Reduction Act, which President Joe Biden signed into law Tuesday. Although industry lobbying group American Petroleum Institute opposes the legislation, which provides a number of provisions to bolster renewable energy, Sheffield said he supports "almost all" of its provisions. He didn't specify which he dislikes, but noted he believes the U.S. needs all energy sources — wind, solar and nuclear alongside oil and gas. "We've led the Permian Basin in regard to reducing flaring methane intensity," the CEO contended. "We recently joined the Oil and Gas Methane Partnership, which is part of the [United Nations]. We're at 0.5%, half of one percent, in regard to flaring. We're going to get it down to two-tenths of one percent, so we're not really worried about the methane tax." The tax on methane emissions is set to kick in during calendar 2024 at $900 per metric ton of methane and reach $1,500 per metric ton in 2026. However, for natural gas production facilities the charge only is in effect on methane emissions that "exceed 0.2% of the natural gas sent to sale from such a facility," according to the Congressional Research Service. That could explain why Sheffield is not worried about the tax, given Pioneer's intentions to further reduce flaring intensity. Production and dividend Pioneer remains committed to its newfound production discipline, Sheffield told Cramer, stressing the importance of returning money to shareholders through its fixed-plus-variable dividend. All else being equal, investing more heavily to expand production would cut into free cash flow, leaving Pioneer with less money available to distribute back to investors. In its most recent quarter, over 95% of the company's free cash flow went back to shareholders via dividends and buybacks, which the Club loves to see because that's a key reason we own the stock. Pioneer's declared quarterly dividend payout of $8.57 per share equals a roughly 15% yield, based on the stock's closing price Tuesday. "We have to deliver free cash flow. We have to return it to the shareholders, so I think the growth days are over for the industry," Sheffield said. "Permian is still growing. ... It's most of the growth in U.S. oil production. We're growing at 5%, but we're going to do that long term [and] return most of the cash flow back to the shareholders." Sheffield reiterated that Pioneer prioritizes dividends over buybacks, saying that's what investors have told the company is their preferred capital return strategy. That said, the CEO said management will be opportunistic with share repurchases. For example, in July, Pioneer bought back $250 million worth of stock at an average price of $213 per share. That's well below its 52-week high of $288.46 per share in May. LNG opportunities The U.S. became the world's largest exporter of liquified natural gas (LNG) in the first six months of 2022. Among the reasons for that is increased demand from Europe, which is suffering an energy-price crisis following Russia's invasion of Ukraine and related disruptions to natural gas supply. Cramer asked Sheffield where Pioneer stood on being able to export any of the natural gas it produces. While that could be financially lucrative to Pioneer, exporting natural gas requires conversion to LNG, which involves a specific cooling process so it can be stored and transported overseas. "Right now, we're sending all of our natural gas to the Gulf Coast. We're sending some to the California markets. There is more pipelines being built from the Permian to the Gulf Coast over the next two years. We have seriously considered doing something with Cheniere and others on LNG to get it to Europe, or to get it to Asia," Sheffield said. "The biggest issue for us is that the next set of LNG plants are 2027, 2028. They want you to sign a 15-year contract. So, we have to guess what [are natural gas prices] going to be from 2028 to 2043. ... So, so far we've held back, but eventually we'll probably do something." (Jim Cramer's Charitable Trust is long PXD. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Scott Sheffield, CEO, Pioneer Natural Resources at the NYSE, Aug. 17, 2022.
Kevin Stankiewicz11 min ago | 2022-08-19T04:55:52Z | www.cnbc.com | Pioneer CEO says the oil company will keep returning most of its cash flow to investors | https://www.cnbc.com/2022/08/17/pioneer-ceo-says-oil-company-to-keep-returning-most-of-its-cash-flow-to-investors.html | https://www.cnbc.com/2022/08/17/pioneer-ceo-says-oil-company-to-keep-returning-most-of-its-cash-flow-to-investors.html |
These new Treasury ETFs are further dicing up the bond market for investors. Here's how they work
A new group of ETFs is bringing the stodgy Treasury market even closer to the stock market and giving some investors a way to make targeted bets on the yield curve. F/m Investments launched a series of ETFs last week focused on individual maturities for U.S. government debt, giving investors the ability to easily gain exposure to specific segments of the Treasury market. The funds have a relatively simple structure. They purchase and hold Treasurys of the stated maturities until they become outdated. Then, F/m goes to a brokerage to swap out the older bonds for more current issues, keeping the exposure close to the stated objective. "There were lots of more sophisticated, perhaps more interesting or academically engaging ways to provide this exposure," said Alex Morris, president and chief investment officer of F/m. "But it turns out that wasn't exactly what folks were looking for. …They wanted a simpler, tidier, easier-to-understand, easy-to-trade way to get access to this consistent maturity, safe investment." F/m hopes that, by avoiding using options or swaps in the fund and instead gaining direct exposure to the cash bonds, the funds will be less of a target for high frequency traders who may try to game the funds, Morris said. For now, the funds are only buying on-the-run Treasuries, but they may participate in the when-issued market as the assets in the funds increase, Morris said. The focus on single time-frames differs from existing Treasury ETFs. For example, the popular iShares series of Treasury funds takes a wider scope, such as a 1-3 year Treasury fund (SHY) and 20+ year Treasury fund (TLT) . The lack of specificity in fixed income ETFs stands in contrast to equity ETFs, which have boomed over the past decade with increasingly customized strategies. "The environment that we were in the last 12, 14 years really didn't call for Treasuries to be interesting. And if you think about it, over the past 12-14 years is when the ETF space has gone through a tremendous amount of growth," said Craig Urcioli of The RBB Fund, which advises F/m. The first batch of the Treasury funds from F/m includes a three-month bill fund (TBIL) , a 2-year Treasury fund (UTWO ) and 10-year Treasury fund (UTEN) . Morris said the plan is to fill out the yield curve over the next several months. The funds have an expense ratio of 0.15% and will also pay out dividends on a monthly basis, regardless of when the underlying bills, notes and bonds receive coupon payments. In cases where the value of the bonds has risen before a rolling period, creating a potential capital gain, F/m will use a so-called "heartbeat trade" that keeps the event from being taxable, Morris said. While the simplicity and convenience of the ETF structure is a main selling point for the fund, the ability to make easy bets on the shape of the Treasury curve will be another draw for some investors, Morris said. "There's a lot of closeted curve nerds out there," Morris said.
Jenni Reid44 min ago | 2022-08-19T04:57:06Z | www.cnbc.com | These new Treasury ETFs are dicing up the bond market for investors | https://www.cnbc.com/2022/08/17/these-new-treasury-etfs-are-dicing-up-the-bond-market-for-investors.html | https://www.cnbc.com/2022/08/17/these-new-treasury-etfs-are-dicing-up-the-bond-market-for-investors.html |
Stocks still have further to fall, especially going off one key indicator, according to Savita Subramanian of Bank of America. The Rule of 20 is one of the signposts that Subramanian watches to gauge a market bottom. The rule, which is the sum of year over year consumer price inflation plus trailing price-to-earnings has been lower than 20 at previous market bottoms, according to a Wednesday note. Currently, this number is 28.5, according to Bank of America. Bringing it down below 20 would require inflation to dramatically fall or for stocks to see a significant decline (pushing down their P/E ratio) or for earnings to grow exponentially. "Outside of inflation falling to 0%, or the S & P 500 falling to 2500, an earnings surprise of 50% would be required to satisfy the Rule of 20, while consensus is forecasting an aggressive and we think unachievable 8% growth rate in 2023 already," Subramanian wrote. Other indicators Beyond the Rule of 20, which has a perfect track record, only 30% of the indicators that Bank of America tracks to signal a bull market have flashed green. In previous market bottoms, at least 80% of those signposts have been triggered. Other milestones that have not yet tripped include the Fed cutting rates, rising unemployment and a more than 50 basis-point decline in the 2-year U.S. Treasury yield. Just as worrisome for the bulls is that stocks are now relatively expensive given the S & P 500's 17% rally from the June low. Still, the summer advance is probably only a bear market bounce, according to Bank of America. Bank of America sees only a 20% chance that a recession is priced in to the market, when gauging the equity risk premium. That's down from a 36% chance in June and a 75% chance in March. Though markets seem to be betting on a soft landing, it may be too early to discount a hard one. Given this backdrop, Bank of America says investors should buy energy and industrial stocks and offload shares of consumer staples and consumer discretionary companies. | 2022-08-19T04:57:12Z | www.cnbc.com | This market signal says a bottom is not in, Bank of America claims | https://www.cnbc.com/2022/08/17/this-market-signal-says-a-bottom-is-not-in-bank-of-america-claims.html | https://www.cnbc.com/2022/08/17/this-market-signal-says-a-bottom-is-not-in-bank-of-america-claims.html |
The campaign is also supported by the Association of Professional Flight Attendants, Air Line Pilots Associations, International Association of Machinists and Aerospace Workers, the International Brotherhood of Teamsters, the Transport Workers Union of America, and the Communications Workers of America.
"Our highest financial priorities right now are restoring our balance sheet and investing in our employees and customers," United said in a statement. The carrier is in the middle of a fleet refresh with close to 300 aircraft set for delivery in the coming years.
Southwest declined to comment and American and Delta didn't immediately respond.
Those challenges could make it difficult for airlines to resume buybacks or dividends, which are also barred through Sept. 30, under the terms of the aid package.
"Given the economic uncertainty and perhaps even operations that are still not fully back to pre-COVID levels, we do not expect any to initiate dividends or buybacks this year," said Savanthi Syth, airline analyst at Raymond James.
She estimated that the earliest that airlines would resume would be mid-2023, with Alaska Airlines and Southwest the most likely candidates among U.S. carriers. | 2022-08-19T04:58:14Z | www.cnbc.com | Airline unions urge carriers not to resume buybacks when bailout ban ends this fall | https://www.cnbc.com/2022/08/18/airline-unions-urge-carriers-not-to-resume-buybacks-when-bailout-ban-ends-this-fall.html | https://www.cnbc.com/2022/08/18/airline-unions-urge-carriers-not-to-resume-buybacks-when-bailout-ban-ends-this-fall.html |
An employee works at the Tokyo Stock Exchange in Tokyo, Japan, on Jan. 13, 2022.
Asia-Pacific markets are trading lower across the board on Thursday after the latest Wall Street rally cooled overnight and July minutes from the U.S. Federal Open Market Committee pointed to "little evidence inflation pressures were subsiding" at the time of the meeting.
The S&P/ASX 200 in Australia fell 0.21% to close at 7,112.8. Japan's Nikkei 225 dipped nearly 1% to 28,942.14 while the Topix index dropped 0.82% to 1,990.5. In South Korea, the Kospi was down 0.33% and closed at 2,508.05.
Mainland China markets also took a tumble. The Shanghai Composite slipped 0.46% to 3,277.54 and the Shenzhen Component lowered 0.62% to 12,517.32 at the end of the trading. Hong Kong's Hang Seng index was down 0.8%.
The Philippine central bank also joined the inflation bandwagon and raised interest rates by 50 basis points.
After the market closed Wednesday, Tencent posted its first ever quarterly sales fall. The company said its earnings were hurt by a lack of game approvals and regulations that limit playing time and a weak economy that hurt ad sales. On Thursday, shares of Tencent bounced 3.1%.
The Philippines hikes interest rates by 0.5%
The Philippines central bank has raised its interest rate on its overnight reverse repurchase facility by 50 basis points to 3.75%.
The bank executed a surprise rate hike in July when it boosted rates by 75 basis points and said it could do more in order to rein in inflation and rescue a depreciating peso.
Tencent shares buoyant as tech giant talks up new revenue channels
Chinese tech giant Tencent 's earnings performance, especially with short video revenue and cloud computing was a "positive surprise," Macquarie's head of China internet and digital assets research, Esme Pau told CNBC's "Asia Squawk Box."
"We're also positively surprised by the outlook that came out," Pau said on Thursday.
"We expect that for video accounts, monetization was ahead of our expectations. In terms of timeline, we expect that to be a core driver. And that will contribute about a quarter of its advertising revenue in two years."
Tencent, which runs China's most popular messaging app called WeChat, has built a short video platform built within WeChat. In July, Tencent for the first time began serving ads to users in that service it calls video accounts.
Even though Tencent posted its first revenue decline for the second quarter this year on Thursday, the company's shares traded in the black by 3.1% on Thursday.
Pau said there are other upsides, which included Tencent's plans to harness earnings from its cloud computing business.
"In the last quarter, we see that they have already migrated their entire business and also their entire data onto the cloud. So that's a major shift in terms of their data deployment," he said.
"Tencent, by public cloud market share, is already ranked number two in China, and they're going all out in terms of international expansion," Pau added.
No hard landing for mortgage holders but tightening in order: NZ Reserve Bank
The Governor of the Reserve Bank of New Zealand Adrian Orr said there wouldn't be a "hard landing" for house prices as a consequence of the bank's interest rate hikes — but some "belt tightening" would be in order.
Orr told CNBC's "Squawk Box Asia" on Thursday, the bank did not target house prices solely but focused on the wider economy and aimed for stable and low inflation.
"So no, we're in our remit is that we are trying to target house prices or any asset prices. I think there's been a misconception of recent times," Orr said.
"We're actually relieved from a financial stability point of view that house prices have come off, we expect them to be down around 20%. Now, our estimate, but even then, that's only bringing them back to a more sustainable level. They were extremely high during the very loose monetary policy."
Orr also said during the recent period of low interest rates, the bank and New Zealand's prudential regulator worked together to ensure that household balance sheets were in a good shape.
"And so the current level of interest rates that we will see today as consistent with our statement, are fully within that range of manageability. Now, that doesn't mean that it won't involve some belt tightening, for households, or those who have just entered the market," he said.
Orr also said he predicted very low GDP growth for New Zealand in the next couple of years and said a recession, could not be ruled out.
Indian companies report significant budget increase in ICT
More than 50% of Indian enterprises have increased their information and communications technology (ICT) budgets by more than 6% in 2022 compared to last year, a survey by data company GlobalData showed.
The rise in in the use of digital and tech services was driven by the pandemic amid ongoing digital initiatives by the Indian government.
GlobalData's India enterprise ICT investment trends report said about 56% of the key IT decision makers surveyed claimed that there has been a significant (greater than 6%) rise in their ICT budget for 2022 compared to 2021. Another 34.5% claimed there has been a slight (1% to 6%) increase in the same period.
"The optimistic enterprise ICT spending outlook in India for 2022 can most likely be attributed to the growing focus on technology-led investment towards digital transformation activities like cloud migration, automation, and upgrading of legacy IT infrastructure along with favorable government policies," Pragyan Tarasia, technology analyst at GlobalData, said.
Tencent has denied selling its stake in Chinese food delivery giant Meituan — but there is a good chance the tech giant may still divest some of its smaller businesses to shake off scrutiny from regulators, according to one analyst.
Like Alibaba, Tencent is now facing a "power concentration" problem and Chinese regulators may be sniffing around to ensure smaller gaming and tech companies get a leg into the sector and diversify.
"Tencent kind of faces what Alibaba faced in the e-commerce market. It's the top gaming company [in China] so the government is actively trying to rein it in to give smaller developers a chance to to catch up to Tencent and NetEase. And I can't say for certain when that's going to end," stock advisor Motley Fool technology specialist Leo Sun told "CNBC Capital Connection."
"We are really not sure what's going to happen to Tencent. It's not only the biggest video gaming company in China, but the biggest gaming company in the world."
Sun said the company had already divested some of its holdings in the past, such as JD.com and so it might look at other smaller divestments.
Chinese developer Country Garden has issued a profit warning projecting its net profit for the first half of the year to fall below half of last year's result.
It estimated its net profit to sit between 4,500 million yuan and 5,000 million yuan ($660 million and $730 million), down from last year's 15 billion yuan ($2.21 billion).
The company attributes the fall in profit to a decrease in property sales, increased provision for impairment for property projects and foreign exchange losses.
"The Board is of the opinion that most of the above factors affecting profits were non-cash in nature, and the operation of the Group is in good condition with sufficient cash available and cash flow remains stable," the company said in a statement.
Taiwan, U.S. to start talks on trade initiative
The United States and Taiwan have agreed to start discussions over a new trade initiative, the "U.S.-Taiwan Initiative on 21st-Century Trade."
The office of the U.S. Trade Representative said the two sides had "reached consensus on the negotiating mandate."
There was no mention of a possibility of a free trade deal.
This follows U.S. House Speaker Nancy Pelosi's recent controversial visit to Taiwan. And comes on the back of Washington's economic pivot to Asia, that led to the launch of the Indo-Pacific Economic Framework, which did not include Taiwan.
Coca-Cola and Grab to partner on e-commerce initiatives
Coca-Cola and Grab, Southeast Asia's leading ride hailing and delivery app have announced a partnership to launch and engaging consumers through GrabAds.
The partnership will take place across six Southeast Asian countries that is, Singapore, Indonesia, Malaysia, Thailand, Philippines and Vietnam.
Australian unemployment rate falls again, to a 48-year low
Australia's unemployment rate has fallen to 3.4% in July, the lowest since 1974, according to the latest data released by the Australian Bureau of Statistics. It fell from 3.5% in June.
"The fall in unemployment in July reflects an increasingly tight labor market, including high job vacancies and ongoing labor shortages, resulting in the lowest unemployment rate since August 1974," Bjorn Jarvis said.
A tighter employment market could prompt further demand and inflation as well as further rate increases.
In the Reserve Bank of Australia's meeting minutes this week, the bank said "employment growth could be stronger than expected, and strong household balance sheet positions could support household consumption by more than anticipated".
The power outage had contributed to a slowdown in GDP growth in the third quarter of the year, China's National Bureau of Statistics said at the time. It said power rationings in parts of China had impacted "normal production."
Fed plans to hike rates to a 'restrictive' level, minutes show
The minutes from the Federal Reserve's July meeting shows that central bankers plan to continue rate hikes in order to bring down inflation.
The Fed has hiked by three quarters of a percentage point at each of its last two meetings. However, the central bank signaled that it could slow that pace in the coming months as those historically large moves take full effect.
Some of the meeting participants indicated that the Fed should keep rates at a restrictive level "for some time" even after slowing the hikes.
The minutes also showed that Fed is worried about inflation and the economic environment possibly worsening from here.
"Uncertainty about the medium-term course of inflation remained high, and the balance of inflation risks remained skewed to the upside, with several participants highlighting the possibility of further supply shocks arising from commodity markets," the minutes said. "Participants saw the risks to the outlook for real GDP growth as primarily being to the downside." | 2022-08-19T04:58:26Z | www.cnbc.com | Asia-Pacific markets trade lower after Wall Street cools following Fed minutes | https://www.cnbc.com/2022/08/18/asia-pacific-markets-poised-for-lower-open-after-wall-street-cools-following-fed-minutes.html | https://www.cnbc.com/2022/08/18/asia-pacific-markets-poised-for-lower-open-after-wall-street-cools-following-fed-minutes.html |
Dr. Ashish Jha, Coordinator of the COVID-19 Response, speaks to reporters during the daily press briefing at the White House in Washington, U.S., April 26, 2022.
A CDC spokesperson tells CNBC Make It that the updated shots will be available as a booster dose for people who have completed their primary vaccination series, regardless of how many other boosters they have or haven't received. The agency says it expects Pfizer's updated booster to be authorized for people ages 12 and older, and Moderna's updated shot to be for people ages 18 and older.
Younger pediatric age groups will follow later, the spokesperson says.
Update: This story has been updated to include comments from a CDC spokesperson. | 2022-08-19T04:59:34Z | www.cnbc.com | Dr. Ashish Jha: Covid BA.5 booster shots could be just weeks away | https://www.cnbc.com/2022/08/18/dr-ashish-jha-covid-ba-5-booster-shots-could-be-just-weeks-away.html | https://www.cnbc.com/2022/08/18/dr-ashish-jha-covid-ba-5-booster-shots-could-be-just-weeks-away.html |
A data center technician said her co-workers are seeking sterilization options as their state's abortion ban goes into effect.
The company in June announced benefits for employees but it only applied to a portion of its workforce.
A Google employee marches towards City Hall during the Global Climate Strike in Seattle, Washington, on Friday, Sept. 20, 2019. Thousands of workers at Microsoft Corp. and Amazon.com Inc. walked out without their bosses blessings to protest rising global temperatures.
If needed, Okugawa, could get an out-of-state abortion and could even request a permanent transfer to a different company office due to the health benefits she gets as a full-time Google employee. However, her colleagues — many of whom are contractors — don't get those same options.
"Some of my TVC co-workers are scared," Okugawa told CNBC, referring to a Google term that stands for temps, vendors and contractors. "Some told me they have been seeking sterilization options because they know there won't be access to abortions in the state."
Okugawa is one of several hundred Google employees who have signed a petition sent to the company’s management this week asking that contractors get the same benefits in obtaining abortion and health-care services after the Supreme Court overturned Roe v. Wade.
The letter, which is written by members of the Alphabet Workers Union-CWA, is addressed to Google and Alphabet CEO Sundar Pichai, Google's chief people officer, Fiona Cicconi, Bobby Dhanoa, who oversees Google’s “extended workforce,” and Google’s chief diversity officer, Melonie Parker.
Google declined to comment on the petition and CNBC's interview with Okugawa.
"Their level of health-care benefits is not as high as we’re provided as full-time employees," Okugawa said of contractors. Okugawa knows because, up until six months ago, she was still a contractor before the company made her a full-time employee.
“Google is probably one of the biggest household names as far as tech companies go — when you search online you don’t say I'm going to search this you say 'I'm going to Google this,'" Okugawa said. "So, it’s only right we display a sense of compassion, empathy and fairness with anyone contracting with the company who should get the same protections and sustainability of life offered to regular employees."
The group hopes to earn wins as it did in Kansas City, Missouri, where employees working on a Google product unionized for the first time under AWU in March. Meanwhile, in June, Google Maps contractors won a 90-day extension on a return-to-office timeline after threatening to go on strike. | 2022-08-19T04:59:58Z | www.cnbc.com | Google workers petition management for equal abortion benefits | https://www.cnbc.com/2022/08/18/google-workers-petition-management-for-equal-abortion-benefits.html | https://www.cnbc.com/2022/08/18/google-workers-petition-management-for-equal-abortion-benefits.html |
BJ's Wholesale Club (BJ) reported second-quarter results that easily surpassed Wall Street estimates Thursday morning, offering positive readthroughs to Club holding Costco (COST) ahead of next month's earnings release. Bottom line We'll get into the differences between the two companies — namely in scale and sales mix — but, at a high level, BJ's strong results indicate wholesaler retailers that operate under a membership-fee model are in a position to thrive in this inflationary environment. We've been making this point about its much larger rival Costco for a while, and BJ's numbers — combined with solid results from Walmart -owned Sam's Club earlier in the week — only serve to bolster our conviction. We maintain a 1 rating on Costco, meaning see it as a buy at these levels. Costco has a market cap is more than $248 billion. BJ's quarter Massachusetts-based BJ's earned an adjusted $1.06 per share on quarterly revenue of $5.01 billion, when analysts were looking for EPS of 80 cents and revenue of $4.57 billion, according to FactSet. Drilling down on key metrics for wholesalers, quarterly membership fee income grew 11.3% year to year to $98.8 million and topped estimates by nearly $2 million. Overall member count grew 6% year over year. Same-store sales, excluding gasoline, rose 7.6% year over year, much better than FactSet estimate of 4.2%. Gross margin rate on merchandise sales, which excludes gas and membership fees, came in at 15.2% versus estimates of 13.4%. That was down from 16.5% in the year-ago quarter, however, as factors such as freight costs and merchandise markdowns weighed on profitability. BJ's management also raised its full-year comparable sales guidance, saying it now expects growth in the 4% to 5% range, up from its old forecast of "low single digit." Full-year EPS guidance is now between $3.50 and $3.60, up from approximately $3.25. Shares of BJ's surged more than 8% Thursday, hitting a new 52-week high, as investors cheered the quarter. So impressed by the results, Bank of America upgraded BJ's to buy from hold in a note to clients after the opening bell — not something that happens often. BJ's is a $10 billion market cap company. Sam's Club quarter Before we got Thursday's results from BJ's, we also saw solid Sam's Club results Tuesday along with better-than-feared numbers from its parent company Walmart. (Remember, like BJ's and Costco, Sam's Club is a wholesaler that uses a membership-fee model.) Sam's Club membership hit an all-time high in the quarter ended July 29, and income from those fees rose 8.9% on a year-over-year basis. "Sam's added more new members in Q2 than any other quarter in recent years, benefiting from membership campaigns," CFO John Rainey said on WMT's earnings call. Sam's Club revenue of $21.9 billion exceeded FactSet estimates of $21.52 billion, although $427 million in operating income fell well below analyst expectations of $701.4 million. Management said operating income was dragged down by higher-than-usual markdowns to clear excess goods and a $123 million accounting charge related to inflationary impacts on inventory. Comparable store sales at Sam's Club, excluding gas, increased 9.5% year over year, slightly missing FactSet estimates of 10.1%. The number of transactions in the quarter rose 9.8% compared with the year-ago period. Goldman Sachs analysts liked what they saw in Sam's Club's results, writing in a note to clients Tuesday they thought the "strong" numbers foretold positive things for BJ's Wholesale when it reported in two days. That proved to be a good call. What about Costco? The BJ's and Sam's Club results show the benefits of operating a members-only wholesale chain with a reputation for providing customers value. This is central to why many people sign up to be members at the likes of Costco, BJ's and Sam's Club to begin with. But following months of scorching-hot inflation, the value proposition these wholesale retailers offer can be spotted from a country mile away. "Our members are increasingly relying on us to fulfill their shopping needs," BJ's CEO Bob Eddy said Thursday on the earnings call, an illustration of our point above. To that end, Eddy said "significant gains in traffic and market share," led by the grocery category, were big drivers of BJ's results. People are looking for value, which all three wholesalers are in a position to provide by nature of their membership models. There are some differences between the three companies that are important to consider when making readthroughs, though, in addition to our belief in Costco's top-notch management team. Scale is the first. Costco is the largest of the trio with 837 warehouse stores globally, and roughly 82% of them are located in the U.S. or Canada. BJ's has 229 club locations in just 17 states, with a heavy concentration in northeast states like New York, Massachusetts and New Jersey. Costco, for comparison, is in 46 states and Puerto Rico. Sam's Club has 600 locations across 44 U.S. states and Puerto Rico, according to Walmart's latest annual report. (Fun fact: Sam's Club does not have locations in Massachusetts or Washington, the home states of BJ's and Costco, respectively.) The sales mix varies across the three companies, as well, which is crucial to keep in mind when trying to understand how the current retail operating environment of value-seeking consumers and inventory markdowns impacts each wholesaler. (Segment names, as reported by the company, are in bold.) Grocery accounted for 71% of BJ's merchandise sales in its fiscal 2021, according to the company's annual report. BJ's grocery category is broad, including both meat and fresh produce in addition to packaged foods and even things like beauty care and paper products. General merchandise and services represented 14% of sales, with gasoline and other contributed 15%. Costco's two food-related categories combined for 54.4% of its fiscal 2021 merchandise sales, while non-foods — which includes appliances, apparel and more — accounted for 29.2%. Warehouse ancillary and other businesses — gasoline, pharmacy, food court, and more — represented 16.5% of merchandise revenue. Grocery and consumables were 63.7% of Sam's Club's merchandise sales in its latest full fiscal year, followed by fuel, tobacco and other categories at 15%. Home and apparel represented 11.9% of merchandise sales. Health and wellness — consisting of pharmacy, over-the-counter drugs and optical and hearing services— accounted for 5.4%. The remaining 4.1% came from technology, office and entertainment . What stands out is BJ's has the largest sales exposure to food, followed by Sam's Club then Costco. This is noteworthy because in general a rise in food prices means a larger share of consumers' discretionary income is going toward necessities like groceries, leaving less money left over for discretionary purchases. That dynamic has been felt most acutely by lower-income consumers in recent months. However, Walmart CEO Doug McMillon told CNBC on Tuesday that "people are really price-focused now, regardless of income level." One thing to watch will be how Costco's smaller food share impacts its results, given concern about spending on discretionary items. Perhaps members will choose to do more of their food shopping at Costco, forgoing stops at other grocers to capitalize on the wholesaler's value offerings. Under this scenario, it could help offset less spending in other categories, thought it could impact profits since food is lower-margin. Another possibility is that the higher-income mix of Costco members could mean they're in a position to keep buy things like new clothes, books and patio furniture, putting less pressure on more general merchandise categories. We know that Costco's members tend to be "middle- to upper-middle income," in the words of CEO Craig Jelinek, who spoke to CNBC last month and indicated members appeared to beholding up well despite recession concerns. While we don't have Costco's overall earnings yet, we do have individually monthly sales data for May, June and July that back up Jelinek's remarks. In May, Costco's company-wide comparable sales rose 11.8% year over year , followed by a 13% jump in June and a 7% gain in July. In July, in particular, Costco saw "low double digit" growth in its food and sundries category, which includes frozen foods and so-called dry grocery items like pasta. Fresh foods, led by bakery and produce, rose low to mid-single digits. On BJ's earnings call Thursday, management noted on multiple occasions how the recent spike in fuel prices helps the company demonstrate its value to customers and drive foot traffic into stores. This is a dynamic that Costco management has spoken to in the past, and all signs indicate it will have continued to help Costco in its 16-week fourth quarter (which started in May 9 and ends Aug. 28). What's more, Eddy, the BJ's CEO, said the company's earnings were helped by a "higher-than-normal" profit per gallon once gas prices started to roll over in June. The CEO attributed that to the way prices at the pump lag falling input costs, providing a lift to profits when combined with an overall increase in people buying gas at BJ's. This is another layer to the gas dynamic that could help Costco on the earnings front. As a reminder, membership fees are generally Costco's most important source of profits. They are primarily what allows Costco — and BJ's and Sam's Club, for that matter — to offer competitive prices on other products. (Jim Cramer's Charitable Trust is long COST. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Customers carry their items after shopping at Costco in Washington D.C., May 5, 2021.
Ting Shen | Xinhua News Agency | Getty Images | 2022-08-19T05:00:59Z | www.cnbc.com | Investing Club: Strong results from BJ's Wholesale show why we love Costco so much | https://www.cnbc.com/2022/08/18/investing-club-strong-results-from-bjs-wholesale-show-why-we-love-costco-so-much.html | https://www.cnbc.com/2022/08/18/investing-club-strong-results-from-bjs-wholesale-show-why-we-love-costco-so-much.html |
Russia issues stark warning over the nuclear power plant it's occupying; Kyiv urges inspection of damaged facility
Shelling near Ukrainian nuclear plant causes serious concerns
A Ukrainian Emergency Ministry rescuer attends an exercise in the city of Zaporizhzhia on Aug. 17, 2022, in case of a nuclear accident at the Zaporizhzhia nuclear power plant located near the city.
Russia allegedly tells nuclear power plant workers to not go to work tomorrow amid concerns of a planned incident
Andriy Yusov, a spokesman for Ukraine's military, told NBC News that new intelligence indicates the Kremlin has informed its forces at the Zaporizhzhia nuclear power plant to leave tomorrow, a revelation that comes amid speculation that Russia is planning an incident at the facility.
Earlier today, Russia's military accused Ukraine of planning a "provocation" at the plant on Friday.
Meanwhile, Ukrainian officials have accused Russia of laying the groundwork to create an incident at the facility in order to blame Ukraine for the mishap.
Read more from NBC News here.
Death toll rises in Kharkiv following Russian strikes
Firefighters extinguish a fire at the site of a destroyed hostel as a result of a missile strike in the second largest Ukrainian city of Kharkiv late on August 17, 2022, amid Russia's military invasion of Ukraine.
Ukraine's state emergency service said the death toll has risen in Kharkiv after Russian strikes targeted residential buildings.
The service said on its Facebook page that 12 civilians have died and another 20 people have been wounded.
The Kremlin has previously said that it does not target civilian infrastructure.
'We do not want to experience a new Chornobyl case,' Turkish president says
Turkish President Recep Tayyip Erdogan (L) meets with Ukrainian President Volodymyr Zelenskyy (R) at Potocki Palace in Lviv, Ukraine on August 18, 2022.
Turkish Presidency | Murat Cetinmuhurdar | Anadolu Agency | Getty Images
Turkish President Recep Tayyip Erdogan expressed mounting concern over the Zaporizhzhia nuclear power plant situation.
"We do not want to experience a new Chornobyl case," Erdogan said during a joint press conference with United Nations Secretary-General Antonio Guterres and Ukrainian President Volodymyr Zelenskyy in Lviv.
Erdogan's visit to Ukraine, his first since the Kremlin's war broke out, comes amid speculation that Russian forces are planning an attack at the facility.
Turkey's Erdogan meets with Zelenskyy in Ukraine for the first time since war broke out
Turkish President Recep Tayyip Erdogan (L) meets with Ukrainian President Volodymyr Zelenskyy (R) in Lviv, Ukraine on August 18, 2022.
Turkish Presidency | Anadolu Agency | Getty Images
Ukrainian President Volodymyr Zelenskyy met with Turkish President Recep Tayyip Erdogan in Lviv, Ukraine. The meeting in Ukraine was Erdogan's first since Russia's war began nearly six months ago.
The two will also meet with United Nations Secretary-General Antonio Guterres and discuss the humanitarian sea corridor deal known as the Black Sea Grain Initiative.
Guterres will also meet separately with Zelenskyy to discuss the Zaporizhzhia nuclear power plant and arrangements for the IAEA, a nuclear watchdog to visit the facility.
A MiG-31K fighter jet with a Kinzhal hypersonic missile flies over Moscow's Red Square during the Victory Day military parade in 2018.
Sefa Karacan | Anadolu Agency | Getty Images
Russia's Ministry of Defense said that it deployed three MiG-31i fighter jets armed with Kinzhal hypersonic missiles to an airfield in Kaliningrad.
Kaliningrad is a small Russian exclave located on the Baltic Sea and sandwiched between Lithuania and Poland.
"MiG-31i with Kinzhal hypersonic missiles will be on round-the-clock combat duty at Chkalovsk airfield," Russia's military wrote on the Telegram messaging app.
The Kinzhal is a hypersonic weapon that travels at Mach 5 or higher, which is at least five times faster than the speed of sound. This means that a hypersonic weapon can travel about one mile per second.
Blinken speaks with Ukrainian counterpart on weapons and Zaporizhzhya
Secretary of State Antony Blinken spoke with Ukrainian Foreign Minister Dmytro Kuleba on continued U.S. support for Ukraine's defense needs.
Blinken updated Kuleba on U.S. deliveries of security assistance and condemned Russia's actions at the Zaporizhzhia nuclear power plant, according to a State Department readout of the call.
"Additionally, the secretary reaffirmed the United States will continue to call for an end to all military operations at or near Ukraine's nuclear facilities, the return of full control of these facilities to Ukraine and Moscow to end its war of choice against its sovereign neighbor," the readout said.
The two also discussed Ukraine's upcoming Independence Day on Aug. 24.
At least four people were killed by early-morning Russian bombardments of Kharkiv
Editor's note: Graphic content. This post contains images of dead bodies after Russian missile strikes in Kharkiv.
Firefighters search through the rubble of a building destroyed by Russian missile strike in the second largest Ukrainian city of Kharkiv amid the Russian invasion of Ukraine.
At least four people were killed and more than a dozen others injured by early-morning Russian bombardments on the northeast Ukrainian region of Kharkiv, the governor said.
Firefighters intervene in the rubble of the Culture Palace destroyed by Russian missile strike in the second largest Ukrainian city of Kharkiv, on August 18, 2022, amid the Russian invasion of Ukraine.
Rescue workers carry the body of a victim following a missile strike in the second largest Ukrainian city of Kharkiv late on August 17, 2022, amid Russia's military invasion of Ukraine. (Photo by SERGEY BOBOK / AFP) (Photo by SERGEY BOBOK/AFP via Getty Images)
This picture taken on August 17, 2022, shows bodies of victims lay on the ground following a missile strike on a hostel in the second largest Ukrainian city of Kharkiv, amid Russia's military invasion of Ukraine.
— Sergey Bobok | AFP | Getty Images
Ukraine's ambassador to the U.S. calls for more weapons and Russian removal from Zaporizhzhia
Ukrainian Ambassador to the United States Oksana Markarova speaks about the war in Ukraine during a press event at the National Press Club in Washington, DC, March 15, 2022.
Ukraine's Ambassador to the United States Oksana Markarova asked allies to continue sending weapons, humanitarian support and financial aid as Russia's war heads into its sixth month.
"I know it's a lot to ask, but the enemy is much bigger and brutal," Markarova told MSNBC's "Morning Joe" program.
Markarova also called on the United States as well as other Western governments to force Russian troops from their positions in and around the Zaporizhzhia nuclear power plant.
"It's not just a problem for Ukraine but for the whole world," Markarova said, referencing a potential accident at Europe's largest nuclear power plant.
Russia says it may shut down nuclear power plant, warns of effects of potential accident
Russia's Ministry of Defense said on Thursday that it may shut down the Zaporizhzhia nuclear power plant if Ukrainian forces continue, as it claims, shelling the facility.
Ukraine denies shelling the facility and instead blames Russia for endangering the nuclear power plant, saying it is storing ammunition and military equipment there.
Ukraine and the international community have warned of the potential for a catastrophic accident at the plant. On Wednesday, Ukraine's Emergency Ministry conducted a nuclear catastrophe exercise in Zaporizhzhia in case of an accident.
Igor Kirillov, the head of Russia's radioactive, chemical and biological defense forces, said Thursday the plant's backup support systems had been damaged as a result of shelling, Reuters reported.
He also said that in the event of an accident at the plant, radioactive material would cover Germany, Poland and Slovakia.
U.N. Secretary-General Antonio Guterres is visiting Ukraine today and the status and fate of the nuclear power plant are on the agenda.
Russia's Ministry of Defense claimed separately on Telegram today that Kyiv was planning a "provocation" at the power plant during Guterres' visit to Ukraine, "as a result of which the Russian Federation will be blamed for creating a man-made disaster at the power plant."
Russia's Defense Ministry claimed that "in order to prepare for the provocation" it was deploying radiation observation posts near Zaporizhzhia and organizing training exercises for a number of military units in the region "on measures to be taken in conditions of radioactive contamination of the area."
The possibility of an accident at Europe's largest nuclear power plant is a terrifying prospect for Ukraine, a country that still lives with the scars of the 1986 Chernobyl disaster. | 2022-08-19T05:02:19Z | www.cnbc.com | Live updates: Latest news on Russia and the war in Ukraine | https://www.cnbc.com/2022/08/18/russia-ukraine-live-updates.html | https://www.cnbc.com/2022/08/18/russia-ukraine-live-updates.html |
One of the biggest hedge funds in the U.S. increased its bets on key cyclical stocks during the second quarter, according to securities filings. Soroban Capital Partners, which is one of the 25 largest hedge funds by equity position according to FactSet, significantly raised its stake in both CSX and Union Pacific in the second quarter. The combined position in those stocks was nearly $2.6 billion at the end of June. Both of the railroad stocks are down for the year, but they have outperformed the S & P 500. Soroban, co-founded by Eric Mandelblatt, has nearly $13 billion in equity positions, according to FactSet. The fund made several hundred million dollars on commodities bets earlier this year, according to a report from The Wall Street Journal . The chart below shows Soroban's top holdings as of the end of June and the change in shares held during the quarter, according to securities filings and InsiderScore.com. Outside of the railroads, Soroban has several other major positions in cyclical stocks, such as Mosiac and Cenovus Energy . Cenovus has been a big winner for Soroban, as the stock is up about 50% in 2022. Elsewhere, the fund raised its bet on Visa by 75%, bringing its stake in the payments company to more than $700 million. Soroban also initiated new stakes in S & P Global while dumping all of its shares in electric vehicle start-up Rivian . The quarterly filings by hedge funds show only the holdings of long equity positions and some options, so it is unclear if Soroban holds other derivatives positions on stocks or commodities. | 2022-08-19T05:02:43Z | www.cnbc.com | Soroban Capital increases its big bets on transport stocks during the second quarter | https://www.cnbc.com/2022/08/18/soroban-capital-increases-its-big-bets-on-transport-stocks-during-the-second-quarter.html | https://www.cnbc.com/2022/08/18/soroban-capital-increases-its-big-bets-on-transport-stocks-during-the-second-quarter.html |
One of the top small value performers this year, beating out the broader market and its peers is a small Cincinnati-based fund with a slightly quirky investment strategy, according to data from Morningstar. The Auer Growth Fund is small value fund with $34.6 million in assets under management. So far this year, it is up 13.39% compared to the S & P 500's roughly 10% drop. That's the top 1% of performance compared to other small value funds. Its longer-term performance has been rockier. Over the last five years the fund has outperformed the category index – the Russell 2000 Value Index – by 4.8 percentage points and surpassed the average return in the category by three percentage points, according to Morningstar. But, over a 10-year period, the fund has underperformed the index by 1.2 percentage points. Since its inception in Dec. 2007 through the end of June, the fund has returned 1.27% compared to the S & P 500's nearly 9% return, according to information from SB Auer Funds LLC, the fund advisor. In fact, its ranking this year is a bit of redemption for Auer Growth and its strategy – in 2018, the fund was ranked in 100th percentile (last place) in Morningstar's small-blend category. While it jumped to the 16th percentile in 2019, it fell to 93 rd percentile in 2020. About five years ago, however, Auer Growth modernized its stock-picking strategy and how its weighs those names in the portfolio, which has helped its performance, according to Eric McKenzie, portfolio manager of the fund. Stock picks and holdings The fund's current investment strategy is a relatively simple one. "We look for high-performing stocks at a deep discount," said McKenzie. The management team has three main criteria when it comes to picking investments, he said. Companies must have quarterly year-over-year revenue growth of at least 20% and quarterly year-over-year earnings growth of at least 25%. In addition, the stock must be trading at a price-to-earnings ratio below 12 to be included in the portfolio. Beyond these parameters, the fund doesn't limit or target any specific sectors or company sizes. Instead, it's looking for solid performance. "We really are a true go anywhere fund," said McKenzie. The fund's most heavily weighted stocks include energy, health care, technology, industrials and consumer names. The fund rebalances on a quarterly basis and sticks to its criteria to determine what stays in the portfolio. If a stock in the portfolio no longer meets its investment criteria, it's dropped and replaced by one that does. In the quarter ending June 30, the fund picked up three new names. It also bought more shares of current investments, such as homebuilders M.D.C Holdings and PulteGroup . Going forward, the advisors think the fund is well positioned to perform and are confident that it will be able to find companies with increasing sales even if the U.S. falls into a recession. "We've been really happy with what the portfolio has done and really humble about the whole process," said McKenzie. The actively managed fund has a total gross expense ratio of 2.37%, which is generally higher than its peers, according to Morningstar's analysis. | 2022-08-19T05:03:44Z | www.cnbc.com | This growth fund is among the best this year. Here's what it's buying | https://www.cnbc.com/2022/08/18/this-growth-fund-is-among-the-best-this-year-heres-what-its-buying.html | https://www.cnbc.com/2022/08/18/this-growth-fund-is-among-the-best-this-year-heres-what-its-buying.html |
Top tech investor reveals why he thinks PayPal is a buy
It has been a good month for PayPal . The financial services firm reported stronger-than-expected second-quarter results and a renowned fund management firm revealed a stake in the company. Top tech investor Paul Meeks shares why he thinks the stock is a buying opportunity. "PayPal unfortunately suffers from what I call self-inflicted wounds. They have given guidance, quarter by quarter, over the last few years and missed their own guidance miserably. The company has a reputation of not being tightly managed," Meeks, portfolio manager at Independent Solutions Wealth Management, told CNBC Pro Talks last week. But the company's second-quarter earnings report was a "nice positive surprise," and has reignited his interest in the stock. PayPal posted adjusted earnings per share (EPS) of 93 cents for the second quarter, beating the consensus estimate of 86 cents per share, according to Refinitiv. The company also raised its forecast for adjusted EPS for the full year. The company also delivered a beat on revenue and announced projected cost savings of $900 million this year. "I'm starting to become more intrigued because they've shown that they've regained some credibility. I think PayPal could be a buy here," Meeks said. PayPal's colorful history PayPal's reputation as one of the largest online payment processors in the world belies its relatively brief history. The company was born of a merger i n 2000 between online bank X.com, a company founded by Tesla CEO Elon Musk, and software company Confinity. Musk had a brief stint as CEO of the merged company between April 2000 and October 2000. PayPal was acquired by e-commerce giant eBay in 2002 for $1.5 billion, before being spun off as a separate entity in 2015. Read more Have markets hit the bottom? Strategist reveals the indicators to watch closely as stocks rally Is 'super cheap' Meta a buy or a miss? Here's what top tech investor Paul Meeks says Tesla's valuation doesn't make sense until it hits this level, fund manager says The company marked a new chapter in its colorful history earlier in this month, when it announced in its second-quarter earnings presentation that it had entered into an information-sharing agreement on value creation with Elliott Management. "As one of PayPal's largest investors, with an approximately $2 billion investment, Elliott strongly believes in the value proposition at PayPal," Elliott managing partner Jesse Cohn was quoted as saying in the presentation . Meeks said he believes that Elliot's stake in PayPal lends "some credence" to the latter's investment thesis, given Elliot's reputation as a "crackerjack activist investor." The news came just a day after Elliott said it had become the top investor in social network operator Pinterest . But Meeks said he has "more confidence" in PayPal and would "still stay away," from Pinterest given the changing landscape in social media. Shares in PayPal closed at around $102 on Tuesday. The stock is still down nearly 50% this year, despite rallying nearly 40% over the past one month. | 2022-08-19T05:03:56Z | www.cnbc.com | Top tech investor reveals why he thinks PayPal is a buy | https://www.cnbc.com/2022/08/18/top-tech-investor-reveals-why-he-thinks-paypal-is-a-buy.html | https://www.cnbc.com/2022/08/18/top-tech-investor-reveals-why-he-thinks-paypal-is-a-buy.html |
While on the lookout to book more profits, we've done a good deal of selling in recent weeks at around these levels in the stock market and around the following levels in eight Club positions. The market and many of our portfolio stocks have made big runs since the S & P 500 's mid-June low. We'd like to wait for more upside before doing more selling. Just as we don't like to keep buying at the same prices, we also attempt to avoid raising cash near the same share prices. The S & P 500's 18% gain since the June bottom dictated we lock in some gains, in what's been a terrible market this year. Here's a rundown of our trades over the past three weeks — the net effect of which put nearly $120,000 of cash into our coffers. Danaher (DHR): 35 shares at $298.14 on Aug. 17 ; and 65 at $291.35 on July 29 Linde (LIN): 30 shares at $308.95 on Aug. 17 Chevron (CVX): 45 shares at $155.38 on Aug. 9 Salesforce (CRM): 30 shares at $189.94 on Aug. 3 ; and 50 at $181.87 on July 29 Microsoft (MSFT): 50 shares at $282.82 on Aug. 3 Cisco Systems (CSCO): 205 shares at $45.36 on Aug. 2 Walmart (WMT): 250 shares at $132.89 on Aug. 1 Eli Lilly (LLY): 50 shares at $330.16 on July 29 In that time frame, we only made two buys. Procter & Gamble (PG): 40 more shares at $139.53 on July 29 Johnson & Johnson (JNJ): 50 more shares at $166.06 on Aug.15 While we have had an overbought market in recent weeks, a high-level factor that helped position us as sellers into the rally instead of greedy chasers, this week's consolidation has helped us work off a good deal of that overbought condition as seen by the S & P Oscillator, which stood at 4.48% as of Wednesday evening — down from 6.81% on Tuesday evening — and the first reading below the 5% level since July 26. As a result, we see additional selling as less urgent. On the other hand, 4.48% reading in the Oscillator doesn't dictate that buying must be done. With the market catching a bit of breather, we feel no rush to get that cash back to work right here and now. As a result, we're scanning the market and waiting patiently for our stocks to reach more attractive levels. We're taking into consideration the ongoing uncertainties surrounding possibly-peaking-but-still-high-inflation and how the Federal Reserve might act next in its fight to bring cost pressures under control — not to mention geopolitical dynamics in China and Russia's war against Ukraine. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Traders work on the floor of the New York Stock Exchange (NYSE) on August 5, 2022 at Wall Street in New York City. | 2022-08-19T05:04:02Z | www.cnbc.com | We were mostly sellers in the market rally since mid-June. Here's what we're thinking now | https://www.cnbc.com/2022/08/18/we-were-mostly-sellers-in-the-market-rally-since-mid-june-heres-what-were-thinking-now.html | https://www.cnbc.com/2022/08/18/we-were-mostly-sellers-in-the-market-rally-since-mid-june-heres-what-were-thinking-now.html |
Wedbush downgrades Bed Bath & Beyond on Ryan Cohen's stock sale plan, predicts 80% tumble
Investors should follow Ryan Cohen's lead and get out of Bed Bath & Beyond as the company faces an uncertain future, according to Wedbush. Analyst Seth Basham downgraded the struggling retailer to underperform from neutral, saying in a note to clients that the activist investor's decision to sell his stake in Bed Bath & Beyond removes a "key support leg" for the company. "Cohen's activist campaign succeeded in obtaining two permanent board seats, and the company has sought to address several issues highlighted by RC, including a reassessment of its owned brand strategy, inventory mix, and management structure (including the departures of former CEO Mike Triton and CMO Joe Hartsig)," Basham wrote. "More pressing, however, is BBBY's cash burn and the prospects for further financing needed to shore up its balance sheet and rebuild supplier confidence." Cohen said in a filing released Wednesday that he intends to sell his entire stake in Bed Bath & Beyond, which totals roughly 11.8% of the company's shares when including his options positions. It is unclear whether Cohen has already sold his stock. Shares of Bed Bath & Beyond were down 10% in premarket trading, reversing some of the massive gains the stock has seen in August during a revival of the Reddit-fueled meme trade. Basham said that the company's valuation in the stock market is "disconnected" from its fundamentals, creating downside risk for shareholders even if Bed Bath & Beyond can execute a turnaround. "BBBY finds itself in an unenviable position as it faces steep market share losses, an overabundance of inventory and dwindling cash reserves. Quickly fixing these issues will be challenging, particularly given the soft demand environment, continued rapid sales declines and a weak balance sheet, adding significant risk to the company's prospects," Basham wrote. Wedbush maintained its price target of $5 per share for Bed Bath & Beyond, which is almost 80% below where the stock closed on Wednesday. | 2022-08-19T05:04:08Z | www.cnbc.com | Wedbush downgrades Bed Bath & Beyond on Ryan Cohen's stock sale plan, predicts 80% tumble | https://www.cnbc.com/2022/08/18/wedbush-downgrades-bed-bath-beyond-on-ryan-cohens-stock-sale-plan-predicts-80percent-tumble.html | https://www.cnbc.com/2022/08/18/wedbush-downgrades-bed-bath-beyond-on-ryan-cohens-stock-sale-plan-predicts-80percent-tumble.html |
Moses Lin, 29, lives in Anaheim, California, and works as a wedding guitarist and landlord.
I knew that if I went to college and took a traditional route, I'd be hundreds of thousands in debt. And I just didn't want to start my life that way.
Moses Lin
Wedding guitarist and landlord
You don't want to be in a place where you're overstretching yourself to invest. | 2022-08-19T05:04:14Z | www.cnbc.com | Wedding guitarist and real estate investor brings in $245,000 a year | https://www.cnbc.com/2022/08/18/wedding-guitarist-and-real-estate-investor-brings-in-245000-dollars-a-year.html | https://www.cnbc.com/2022/08/18/wedding-guitarist-and-real-estate-investor-brings-in-245000-dollars-a-year.html |
Value investor Bill Miller placed his bets on the reopening play last quarter after adding shares in Expedia and United Airlines . Miller added a new holding in travel name Expedia in the second quarter, according to a recent 13F filing. As of June 30, the investor held 616,700 shares totaling $58.5 million, according to InsiderScore. The stock accounts for 3% of the portfolio. He also bought shares of United Airlines for the first time since exiting the stock after the second quarter of 2020, when flights were grounded because of the pandemic. Miller added 1.19 million shares worth about $42.1 million, which accounts for 2.1% of the investor's portfolio. The holdings signaled Miller's confidence in the reopening theme over the summer, when scads of travelers snatched up airline tickets and reserved hotel rooms in spite of delayed flights and rising prices. Both companies said a surge in travel demand boosted second-quarter results, though United faces challenges from higher fuel prices. Expedia surpassed estimates on both the top and bottom lines, while United Airlines hit a key milestone of returning to profitability without the benefit of federal aid for the first time since the pandemic disrupted its business. Whether Miller held on to these stocks in the current quarter is unknown, but both have advanced on the back of a broader market rally since the end of June. Shares of Expedia are down 37% this year, but have since rebounded 19% in the calendar third quarter. The stock has outperformed the 13% gain in the S & P 500 over the same time period. Meanwhile, United Airlines is 11% lower this year, but has rallied 9% in the current quarter — a spike that underperformed the broader market index. The founder of Miller Value Partners built his reputation for market-beating returns in the 1990s and 2000s. Miller managed the Legg Mason Capital Management Value Trust, which outperformed the S & P 500 from 1991 to 2005. Miller also co-manages the Miller Opportunity Trust , a fund with roughly $2.1 billion in assets under management. The fund is down 22% this year, but over a three-year period, it has returned an annualized 9%, according to Morningstar . Other top holdings in the Miller Opportunity Trust include Chinese e-commerce company Alibaba , natural gas firm Ovintiv and toy company Mattel . | 2022-08-19T05:04:45Z | www.cnbc.com | Bill Miller wagers on travel, taking stakes in Expedia and United Airlines | https://www.cnbc.com/2022/08/19/bill-miller-wagers-on-travel-taking-stakes-in-expedia-and-united-airlines.html | https://www.cnbc.com/2022/08/19/bill-miller-wagers-on-travel-taking-stakes-in-expedia-and-united-airlines.html |
Veteran strategist David Roche believes the end is in sight for the stock market rally. Roche, head of research firm Independent Strategy, told CNBC's "Squawk Box Europe" on Wednesday that he thought the rally was "probably 75% over now." His comments came as the Dow Jones Industrial Average snapped its five-day winning streak Wednesday, although all three major averages closed marginally higher on Thursday. Last week saw the S & P 500 log its fourth consecutive weeks of gains — it is up around 16% from its June lows, but remains down around 10% since the start of the year. Roche said the rally over recent weeks "shows you that we have not tipped straight into a recession due to job disruption and the erosion of household purchasing power." While recession risks in Europe persist due to the Russia-Ukraine war, and in China as a result of structural issues, Roche said there had been a shift in sentiment toward the U.S. and the possibility of an extreme recession globally. "Three weeks ago … consumer price inflation was going to erode household spending, there wasn't enough wealth, there wasn't enough excess savings put aside during the Covid period and we were all doomed," he said. "Now, I would say it's pretty clear that household wealth and the creation of jobs , even if not as strong as before, are — together with rising wages, albeit not in real terms — seemingly combining to keep the [U.S.] economy away from recession. Probably at 1% growth rates, but away from recession." Central banks U.S. consumer prices rose 8.5% in July , a slower year-on-year rate than the previous month. By a traditional technical definition, the U.S. economy is already in a recession after recording two consecutive quarters of negative growth. However, a recession has not officially been declared by the National Bureau of Economic Research. Roche said he thinks the economy may grow slowly enough that oil, energy and food prices will tip down, producing enough disinflation for central banks to pause. Markets have been considering the prospect that central banks will not continue with rate hikes as aggressively, he said, with the Federal Reserve probably pausing at a range of 3.5%-3.75%, and the European Central Bank likely stopping rate rises by the end of the year. In July, the Fed enacted its second consecutive 0.75 percentage point interest rate increase taking the benchmark overnight borrowing rate up to a range of 2.25%-2.5%. The European Central Bank , meanwhile, increased interest rates for the first time in 11 years , pushing its benchmark rate up by 50 basis points to zero. | 2022-08-19T05:05:00Z | www.cnbc.com | Stock market rally is likely 75% over, says veteran strategist David Roche | https://www.cnbc.com/2022/08/19/stock-market-rally-is-likely-75percent-over-says-veteran-strategist-david-roche.html | https://www.cnbc.com/2022/08/19/stock-market-rally-is-likely-75percent-over-says-veteran-strategist-david-roche.html |
This Fidelity growth fund is one of the best in the biz. Here's what it's loading up on
The Fidelity Growth Company fund has had an outstanding decade. Independent mutual fund rating company Morningstar, which gives it a five-star rating, says it is one of the best performing funds over the past 10 years. The fund has $45.4 billion in assets under management and invests in domestic and foreign companies the advisor believes have above-average growth potential. Ranked in the first percentile by Morningstar, Fidelity Growth had a 10-year annual total return of 18.10%, far above the "large growth" category's average 13.6%. In that period, Fidelity Growth Company saw its highest annual return, 67.7%, in 2020. So far in 2022, the fund is down almost 21%, through Wednesday. "That underperformance, while disappointing, is mostly in line with what investors should expect from the strategy, given its style, typical exposure to companies with high volatility, and an unfavorable macroeconomic backdrop," Morningstar strategist Robby Greengold wrote in May. Growth-oriented stocks had a rough first half of the year. But the equity market has risen from its June lows, buoyed by investors keeping a watchful eye on inflation data and the Federal Reserve . The Fidelity Growth Company fund's manager, Steve Wymer, is "one of the best" and his strategy has kept the fund consistently ahead of its peers, Greengold said. That performance has earned a gold analyst rating from Morningstar. The Fidelity fund's top holding is Apple , which made up 11% of the portfolio at the end of June, followed by Nvidia , Microsoft , Amazon and Alphabet . Apple, which has been in the fund since 2004, is slightly down for the year but has seen gains of about 35% since its June 16 low. Nvidia, which makes up 6.92% of the portfolio, is down more than 36% for the year, and Microsoft, which accounts for 6.42% of the fund, lost almost 14% so far this year. Meanwhile, the two most recent additions to the fund are Growthco AB Holdings LLC, making up 0.32% of the portfolio, and Sysco, 0.22%, according to Morningstar. The fund has increased its position in several names as of June 30. The holdings that had the biggest share gains still made up a small fraction of the portfolio. The biggest increase came in shares of UnitedHealth , with the fund raising the number of shares held by 83%. The health insurer now makes up 0.53% of the fund's portfolio. The number of Accenture shares increased by 58% and the Procter & Gamble position grew by 44%, with each making up less than 0.25% of the portfolio. Meanwhile, the fund's holdings of EOG Resources went up by 28.1% and the number of TJX shares increased 8.9%, Morningstar found. Of the 10 largest positions held by the fund, only Visa shares grew slightly in the latest quarter, by 0.22%. The credit card company makes up 1.13% of the portfolio. Fidelity Growth Company's fee level is above average and it has an expense ratio of 0.73%, according to Morningstar.
Sarah Min2 hours ago | 2022-08-19T05:05:06Z | www.cnbc.com | This Fidelity growth fund is one of the best. Here's what it's bought | https://www.cnbc.com/2022/08/19/this-fidelity-growth-fund-is-one-of-the-best-heres-what-its-bought.html | https://www.cnbc.com/2022/08/19/this-fidelity-growth-fund-is-one-of-the-best-heres-what-its-bought.html |
The first three nights of the U.S. Open are sold out, according to the U.S. Tennis Association.
As Serena Williams prepares for her last U.S. Open before retirement, tickets to see the tennis legend play are in high demand.
"We are now basically sold out for Monday (Opening night), Tuesday and Wednesday nights," a USTA spokesperson told CNBC.
The USTA would not disclose financial projections for the famed Queens tennis tournament, and Williams' announcement came so close to the start of the tournament that it's unlikely her retirement would have brought in additional sponsorships, which are usually set well in advance.
"U.S. Open demand continues to pick up as we approach one week out from the start of first-round action. We encourage fans to get tickets now if they want to go, since legends like Rafael Nadal or Serena Williams advancing in play can have a big effect on demand," said Adam Budelli, a spokesperson for StubHub.
"The $1,289 list price is also the most expensive Women's Final we've ever tracked, 37% higher than the previous most expensive, the 2019 Final, which was also the last time Serena made the U.S. Open Final," TicketIQ said.
Williams has won the U.S. Open six times in her career, the most recent win coming in 2014. She's coming off a tough loss to Britain's Emma Raducanu in the opening round of the Western & Southern Open, a Women's Tennis Association event in Mason, Ohio.
During her prolific career, Williams has won 23 grand slam titles, the second most of all time, behind Margaret Cour, and over $94 million in career winnings, twice as much as any other female athlete. She's also been instrumental in bringing African Americans and girls into the sport.
Serena Williams' venture fund raises $111 million | 2022-08-20T06:37:19Z | www.cnbc.com | U.S. Open ticket prices surge ahead of Serena Williams' final tournament | https://www.cnbc.com/2022/08/19/us-open-ticket-prices-surge-ahead-of-serena-williams-final-tournament.html | https://www.cnbc.com/2022/08/19/us-open-ticket-prices-surge-ahead-of-serena-williams-final-tournament.html |
The audited financials give a rare glimpse into the privately held start-up's finances. FTX was profitable, quickly expanding across the globe and saw breakneck growth.
The privately held crypto exchange's revenue soared more than 1,000% from $89 million to $1.02 billion in 2021. Its profitability, like many start-ups, depends on how you measure it. Operating income was $272 million, up from $14 million a year earlier. FTX saw net income of $388 million last year, up from just $17 million a year earlier.
By way of comparison, publicly traded Coinbase also experienced a cash boom times during crypto's bull market, with $7.4 billion in revenue and $3.6 billion of net income last year. But in Q2 of this year, it reported $808.3 million in revenue, a decline of 64% from the year-ago quarter, and a surprise net loss of $1.1 billion, compared with $1.59 billion in net income in the same quarter last year, as retail trading volumes cratered.
FTX was founded in three years ago by former Wall Street quant trader Sam Bankman-Fried. The 30-year-old CEO has recently stepped in as the industry's lender of last resort, looking to backstop companies as liquidity dried up. On top of multiple loans of hundreds of millions of dollars, Bankman-Fried's companies also looked to acquire distressed assets. In July, FTX signed a deal that gives it the option to buy lender BlockFi and was in discussions to acquire South Korean Bithumb. FTX also offered to buy Voyager in August but was turned down for what the company claimed was a "low ball bid."
According to the documents, FTX had roughly $2.5 billion in cash at the end of last year and 27% profit margins, according to the documents. Margins were closer to 50% if advertising and "related party" expenses are stripped out. It last raised money in January, collecting $400 million from investors like SoftBank's Vision Fund 2 and Tiger Global, at a $32 billion valuation.
FTX Trading Ltd is headquartered in Antigua, with FTX Derivatives Markets based in the Bahamas, where Bankman-Fried lives. FTX Trading recently bought Digital Assets DA AG, out of Switzerland, as well as IFS Group and Hive out of Australia – bringing the total to 15 smaller companies across the world. Its portfolio companies span Cyprus, Germany, Gibraltar, Singapore, Turkey and the United Arab Emirates, among other countries, according to the documents. Crypto companies often acquire start-ups to quickly get the proper regulatory licenses to set up shop in a new country.
FTX's U.S. business is technically owned by a parent company, West Realm Shires Inc. As of 2021, FTX U.S. made up less than 5% of FTX's total revenue. Still, the company is making a push to expand here with a series of high-profile ads and sponsorships.
FTX has certainly ramped up its retail expansion efforts. But the documents show that it's still mainly a venue for more sophisticated traders using derivatives – either futures, or options. Sixty seven percent of revenue came from futures trading fees, while roughly 16% came from so-called spot trading. Futures and derivatives trades tend to be more lucrative for exchanges. | 2022-08-20T18:57:08Z | www.cnbc.com | FTX grew revenue 1,000% during the crypto craze: Leaked financials | https://www.cnbc.com/2022/08/20/ftx-grew-revenue-1000percent-during-the-crypto-craze-leaked-financials.html | https://www.cnbc.com/2022/08/20/ftx-grew-revenue-1000percent-during-the-crypto-craze-leaked-financials.html |
People sit outside a bar at Emily Hill in Singapore, on Monday, Aug. 22, 2022.
Boosters and easing of mask requirements
Masks will soon be optional indoors and required in special settings, such as on public transportation and in health-care settings like hospitals, residential care homes and ambulances. They are optional in taxis, private hires and in the airport.
"The reason is that, we have identified areas where essential services are being carried out in enclosed, crowded spaces and which are frequently used by vulnerable persons," said Singapore's deputy prime minister Lawrence Wong, who is also co-chair of the Covid task force in Singapore.
In preparation for the next wave of omicron, a second mRNA Covid booster is now recommended for persons 60 years and above, five months after their first booster. | 2022-08-24T03:15:10Z | www.cnbc.com | Singapore: non-fully vaccinated travelers don't need quarantine from Monday | https://www.cnbc.com/2022/08/24/singapore-non-fully-vaccinated-travelers-dont-need-quarantine-from-monday.html | https://www.cnbc.com/2022/08/24/singapore-non-fully-vaccinated-travelers-dont-need-quarantine-from-monday.html |
The enterprise software maker is raising prices on Slack after acquiring the team communications app last year.
Salesforce said its board approved $10 billion to use on the company’s first buyback program.
Marc Benioff, co-founder and co-CEO of Salesforce, speaks at the TIME100 Gala on June 8, 2022, in New York.
Salesforce reported earnings and revenue that topped analysts' estimates but gave a disappointing forecast for fiscal 2023. The stock slid 7% in extended trading on Wednesday.
The enterprise software maker said its board approved a $10 billion stock buyback program, a first for the company. But Marc Benioff, Salesforce's co-founder and co-CEO, told analysts on a conference call that the move won't prevent it from making more acquisitions.
Earnings: $1.19 per share, adjusted, vs. $1.02 per share, expected by analysts, according to Refinitiv.
Revenue: $7.72 billion vs. $7.69 billion, expected by analysts, according to Refinitiv.
Revenue rose 22% in the quarter ended July 31 from the year-earlier period, according to a statement. Net income of $68 million was down from $535 million in the year-earlier quarter, when the company notched a big gain on investments.
The company has endured weaker economic cycles before, Benioff said.
"Sales cycles can get stretched, deals are inspected by higher levels of management and all of this we began to start to see in July," Benioff said. "Nearly everyone I've talked to is taking a more measured approach to their business. We expect these trends to continue in the near term, and we've reflected this in our guidance."
The slowdown was not across the board, however.
Demand was slower from small and medium-sized businesses, particularly in North America and Europe, and specifically in retail, consumer goods, communications and media, Amy Weaver, Salesforce's finance chief, said on the call.
"From a product perspective, commerce and marketing saw more pronounced decelerations, while sales and service remained strong," Weaver said. Even with weakness in revenue, Salesforce reiterated its guidance for an adjusted operating margin of 20.4% for the 2023 fiscal year.
Before the decline in extended trading, Salesforce shares were down about 29% year to date, compared with a nearly 13% decline for the S&P 500.
We expect pretty challenging numbers in software company earnings, says Piper Sandler's Bracelin | 2022-08-24T23:15:17Z | www.cnbc.com | Salesforce (CRM) earnings Q2 2023 | https://www.cnbc.com/2022/08/24/salesforce-crm-earnings-q2-2023.html | https://www.cnbc.com/2022/08/24/salesforce-crm-earnings-q2-2023.html |
Coal is unloaded onto large piles at the Ulan Coal mines near the central New South Wales rural town of Mudgee in Australia, March 8, 2018.
It's cheaper to switch from coal to renewable energy than to gas: Analytics firm
EU sanctions on Russia's oil and coal are a possibility, says France's finance minister | 2022-08-25T00:48:02Z | www.cnbc.com | Shares of Australian coal miner Whitehaven up 150% since Ukraine war | https://www.cnbc.com/2022/08/24/shares-of-australian-coal-miner-whitehaven-up-150percent-since-ukraine-war.html | https://www.cnbc.com/2022/08/24/shares-of-australian-coal-miner-whitehaven-up-150percent-since-ukraine-war.html |
Hunter Jarratt was a frequent buyer of Quaker's apple oats bars — until he realized the size of his favorite snack has decreased in size, even though the packaging looks the same.
Hunter Jarratt was a frequent buyer of Quaker's apple oats bars — until he realized the size of his favorite snack was decreasing in size, even though the packaging looked the same.
In his TikTok video, he pointed out that an old bar weighed 26 grams and costs $1.90 normally. But an oat bar now costs "well over $2," at 24 grams, he claimed.
That means each gram in the 26-gram bar costs $0.073 while it costs slightly more — at least $0.083 per gram — for the smaller 24-gram bar, according to CNBC's calculations.
"What it does have — is more air," he said tongue-in-cheek.
That's when Jarratt realized "shrinkflation" was at work — where some companies are reducing the contents of their packaging without raising the sticker price, and in so doing, charging consumers more.
PepsiCo — which owns Quaker and other household names, such as beverages like Gatorade and Lipton Tea, as well as Lays potato chips — did not respond to CNBC's request for comment.
Not only are consumers spending more on everyday goods, they're also getting less than what they used to — and young people like Jarratt are not happy.
There were more than 261 million views of short videos related to "shrinkflation" on TikTok as of Thursday, according to the social media platform.
It's difficult enough to keep up with the rising cost of living already, and when businesses start reducing the sizes of their items, it makes things worse.
Why is 'shrinkflation' happening?
Even fast food chains like McDonald's and Domino's Pizza are shrinking their value meals and increasing prices to protect their margins.
For Krishnan Kara, 23, it was Cadbury's chocolate bars.
"They used to be 200g for £2 and are now 180g for £2. A 10% drop in size but the price is still the same," the digital marketer from London said.
"I was annoyed ... Instead of openly increasing the prices of goods with inflation, these big brands chose to make the amount of product less."
In an email response to CNBC Make It, a Mondelez International spokesperson said that "significantly increased production costs" have made it much more expensive to produce its goods.
"We understand that consumers are faced with rising costs too, which is why we look to absorb costs wherever we can," Mondelez International said, without elaborating.
Inflation and shrinkflation are really having a huge impact on groceries and the bottom line of just about everyone.
Drew Lee
@dollarswithdrew
Drew Lee, 31, acknowledged that it's as important as ever for companies to "do whatever they need to do to maintain their profit levels."
"As a consumer, I don't like [shrinkflation]. But I get why companies are doing it. Everyone has to make money," said the industrial engineer.
Food 'not lasting as long'
"Inflation and shrinkflation are really having a huge impact on groceries and the bottom line of just about everyone," said Lee.
Lee added that he noticed shrinkflation was at work because he would typically pour his packaged oatmeal from Target's private-label brand Good & Gather into a different storage container.
"I noticed that it did not fill up the entire container like it normally would. If I didn't pour the oatmeal into a different container, I definitely would not have noticed this," he said.
"Shrinkflation is an attempt to trick customers into thinking they are paying the same price for an item when in reality they are paying a higher cost per unit for that item," insisted Lee, the engineer.
Claudia Valladares, a financial advisor, said that shrinkflation is a cause for concern especially for "individuals who are on a tight budget."
"It's difficult enough to keep up with the rising cost of living already, and when businesses start reducing the sizes of their items, it makes things worse."
Jarratt agreed, saying that that food is "not lasting as long" now that inflation and shrinkflation have become more intense.
"I am a university student on student loans … I have an allocated amount of money for food," the 22-year-old added.
"Either I am choosing alternative products or unfortunately, having to spend more money on food … that is just adding more debt in the long-run."
Here's what you can do
Jarratt's personal experiences with rising costs of living and shrinkflation propelled him to create a TikTok video — even though he admitted it's not his "usual content" as an environmental educator.
"It is hard to truly be a conscientious consumer at the grocery store when most products are owned only by a handful of companies. But when you do spot a change, it's important to speak up," he said.
"People are definitely starting to catch on. A slight package change isn't going to fool anyone."
Other than creating awareness, here's what some are doing to get by:
"You could be throwing away a dollar here and there which will have a huge impact over time."
"Something may look cheaper but the price per gram is higher than the same product that's more expensive," he pointed out.
2. No shame in 'no-name'
"For example, instead of buying Quaker's oats bars, I would rather buy Nature Valley's bars by General Mills, which at least still leave me feeling like I ate something," he said.
"I may also buy a 'no-name' brand granola bar which is cheaper than other brands, and still somewhat filling as a snack.
"I would purchase from companies like that, and where possible and affordable, local businesses too."
Valladares, the financial advisor, said that buying in bulk would typically allow you to "get a discount on the overall purchase."
"This is because retailers know that they will be selling a larger quantity of the product and are willing to give a price break," she explained.
"It also allows you to take advantage of economies of scale – the per-unit cost of the product decreases as the quantity increases."
It's always a good idea to compare the price per unit before making your purchase.
For example, you should check the expiry dates of non-perishable items, and not assume they're always cheaper.
"Sometimes, retailers charge more per unit when selling in larger quantities. It's always a good idea to compare the price per unit before making your purchase," Valladares added.
Don't miss: Young people are saving money and paying off debt through ‘cash stuffing.’ Here’s how it works | 2022-08-25T05:21:38Z | www.cnbc.com | TikTok creators are calling out businesses on 'shrinkflation' | https://www.cnbc.com/2022/08/25/tiktok-creators-are-calling-out-businesses-on-shrinkflation-.html | https://www.cnbc.com/2022/08/25/tiktok-creators-are-calling-out-businesses-on-shrinkflation-.html |
Semiconductors stocks rallied Thursday as Nvidia (NVDA) saw its shares turn their premarket losses into gains shortly after Wall Street's open. As noted Wednesday evening , we thought Nvidia's weaker forward guidance, after a quarter that basically matched its preannouncement, would be viewed as a reset of expectations. Following a sharp decline after-hours, Wall Street apparently came to see it our way. Shares of Club holding Nvidia were up nearly 3% in Thursday's session, taking our other chip holdings along for the ride. Advanced Micro Devices (AMD), Qualcomm (QCOM) and Marvell Technology (MRVL) were all up between roughly 3% and 5%. (Marvell is set to report its quarter after the closing bell Thursday.) The price action in Nvidia's stock was a bit counterintuitive. In general, our rule of thumb is that when a stock rallies on bad news — and the quarter certainly can't be characterized as good news — it's a bullish sign. The reason: It's a sign that most of the sellers have already sold and the buyers are coming because they sense a bottom forming and want to get in before it's too late. Taking a look at analyst reactions to Nvidia's quarter and guidance, just about every analyst on the Street cut numbers and lowered their price targets. The analyst at Citi did as well, cutting their target from $248 per share from $285. However, what separates Citi's call from the pack is that despite the PT cut, they opened a so-called positive catalyst watch call on the stock heading into Nvidia's developers GTC conference, starting Sept. 19, highlighting expectations for new gaming product announcements. In Citi's view, gaming should rebound into 2023 as the inventory correction comes to an end and new products launch. They called out management's commentary that the data center road map remains on track and acknowledged that the Automotive segment is inflecting. They also thought that longer-term, this is a data center play and that shares will continue to benefit from secular growth in artificial intelligence and the protection provided by the company's competitive moat. We tend to agree with pretty much everything Citi said here, with one caveat. Their "positive catalyst watch" call is ultimately, a trading call. The analysts think there could be a trade setup into GTC. Our issue is that we aren't as certain on the timing of the inventory correction in gaming, and while we do expect new products to be unveiled at the event, the lag between those announcements and products hitting shelves and benefiting sales is unclear. It will be heavily impacted by how effectively Nvidia and its channel partners can flush out existing inventory. So, our thinking given Thursday's stock action — which again, we take to be a bullish sign that the bulk of the sellers have already had their way — is that if you aren't in the stock, these levels would be acceptable to take a starting position. We do have Nvidia as a 1 rating, meaning we see the stock as a buy at these levels. However, if you already have a position, as we do, then there's simply no rush to take on more exposure. We've owned Nvidia for a long time and have cost basis at just over $73 per share. We last added to our position back in May at $173.12 per share. The stock on Thursday was trading around $177. After Wednesday's after-the-bell release, we highlighted late 2018 and early 2019 as the appropriate parallel when it comes to trading in Nvidia stock. Keeping with that, there are two dates we want to highlight and use as anchor points to get a better sense of the potential moves we could see in coming months. On Nov. 15, 2018, Nvidia reported a slight revenue miss but beat on earnings per share expectations for its then-fiscal third quarter. Shares fell a little over 26% over the following two days. On Jan. 28, 2019 the company preannounced results, cutting its revenue outlook again and adjusted its gross margin forecast. Over the following two days, shares fell nearly 18%. The big takeaway for us is that the drawdown on the second shoe dropping wasn't as large as the first drawdown. Moreover, we have arguably already seen two shoes drop, the preannouncement on Aug. 8 of this year and the poor guidance third-quarter guidance we just got with the fiscal second quarter earnings release. Following that Jan. 28, 2019 announcement, shares bottomed at just under $33 (Nvidia split it shares 4 for 1 in July 2021) the next day and and proceeded to rally to a high of around $48 by mid-April 2019, a roughly 45% gain. However, shares quickly did an about-face and traded to a closing low of $33.45 in early June, 2019 – essentially giving the entire move back. That was the bottom you wanted to buy as Nvidia never saw that level again and proceeded to more than double between then and pre-Covid pandemic peak of just over $73 per share. By the way, despite this recent brutal drawdown in we have seen in 2022, we are still about 140% above those levels. So, big picture: While there was a heck of a trade in that period between Jan. 28, 2019 and mid-April of that year, from the perspective of a long-term investor who isn't able or willing to try and play the swings, it was ultimately dead money between later that January and early June 2019, and that is what we think we could be looking at here, a stock that has fits and starts over the next few months but that ultimately will not be able to truly reverse and grind its way to new highs until we get this inventory behind, new products launched and production ramped and at a higher level, get a grip on inflation which remains an anchor on valuations. Of course, there's no way to know the exact path shares have ahead of them but in our view, there are three ways to take this analysis and make it actionable: Tell yourself you want play the hedge fund game, follow Citi's "catalyst call" and maybe catch some upside into next month's event (and have an exit strategy in case the reversal we saw in 2019 plays out again this time around). Or, come from the perspective of a long-term investor that currently doesn't have any exposure to Nvidia, acknowledge that while there may still be some downside, the future growth thesis remains intact — and you are ready, willing and able to stomach volatility and build your position over time into any further weakness from here. (Jim Cramer's Charitable Trust is long NDVA, AMD, QCOM and MRVL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
A sign is posted at the Nvidia headquarters on May 25, 2022 in Santa Clara, California. | 2022-08-25T20:10:22Z | www.cnbc.com | Investing Club: Nvidia's turnaround pulled all our chip stocks higher as Wall Street bought the reset | https://www.cnbc.com/2022/08/25/investing-club-nvidias-turnaround-pulled-all-our-chip-stocks-higher-as-wall-street-bought-the-reset.html | https://www.cnbc.com/2022/08/25/investing-club-nvidias-turnaround-pulled-all-our-chip-stocks-higher-as-wall-street-bought-the-reset.html |
The policy will not ban people from owning and driving gas cars or from selling them on the used market.
The unanimous vote comes after Gov. Gavin Newsom set a target in 2020 to accelerate the shift away from internal combustion engines. The transportation sector represents the largest source of greenhouse gas emissions in California, which has suffered from record-breaking wildfires, droughts and air pollution made worse by climate change.
The decision will have sweeping impacts beyond California and will pave the way for other states to adopt the requirement. At least 15 states, including New Jersey, New York and Pennsylvania, have adopted California's vehicle standards on previous clean-car rules.
Liane Randolph, chairwoman of the California Air Resources Board, said the rule is one of the state's most important efforts yet to clean the air and will lead to a 50% reduction in pollution from cars and light trucks by 2040.
"California is once-again leading the way by establishing commonsense standards that will transition to sales of all zero-polluting cars and light-duty trucks in the state," said Kathy Harris, clean vehicles advocate at the Natural Resources Defense Council.
Motor vehicles drive on the 101 freeway in Los Angeles, California.
California, home to congested freeways and smog-filled skies over cities like Los Angeles, has considerable authority over the country's auto industry.
A federal waiver under the Clean Air Act allows the state to adopt stronger fuel economy standards than those of the federal government and has set the precedent for the rest of the country on how to curb vehicle emissions.
California's ability to control vehicle emissions has spurred some innovative strategies, like catalytic converters that convert toxic gases and pollutants in exhaust gas into less-toxic pollutants, as well as "check engine" lights. The state established the first tailpipe emissions standards in the country in 1966.
State officials said the rule is critical to meeting to state's goal to transition to 100% renewable energy by 2045, and that resulting emissions reductions would lead to fewer cardiopulmonary deaths and emergency visits for asthma and other illnesses.
Company turns classic gas-guzzlers into EVs | 2022-08-25T21:52:27Z | www.cnbc.com | California bans the sale of new gas-powered cars by 2035 | https://www.cnbc.com/2022/08/25/california-bans-the-sale-of-new-gas-powered-cars-by-2035.html | https://www.cnbc.com/2022/08/25/california-bans-the-sale-of-new-gas-powered-cars-by-2035.html |
I hope [Powell] recognizes that the amount of tightening that we've put in, and are expected to put in between now and year-end — at least 100 basis points — is very much slowing the economy.
Wharton business school professor
We've added 3.2 million workers, yet we've had declining GDP like we have never seen before. This is a productivity collapse of unheard in proportions, and it's very significant." | 2022-08-26T10:36:40Z | www.cnbc.com | Wharton’s Jeremy Siegel on Fed rate hike ahead of Jackson Hole | https://www.cnbc.com/2022/08/26/whartons-jeremy-siegel-on-fed-rate-hike-ahead-of-jackson-hole.html | https://www.cnbc.com/2022/08/26/whartons-jeremy-siegel-on-fed-rate-hike-ahead-of-jackson-hole.html |
A pedestrian passes in front of a Gap Inc. store in Miami Beach, Florida.
It was June of 2020 when rapper Kanye West first touted that he would be collaborating with Gap on a line of clothing under the Yeezy name. More than two years later, it's unclear just how much the Yeezy gear will move the needle for Gap, if at all. | 2022-08-27T12:45:54Z | www.cnbc.com | 3 things Gap needs to fix to turn its struggling business around | https://www.cnbc.com/2022/08/24/3-things-gap-needs-to-fix-to-turn-its-struggling-business-around.html | https://www.cnbc.com/2022/08/24/3-things-gap-needs-to-fix-to-turn-its-struggling-business-around.html |
Biden cancels $10,000 in federal student loan debt for most
Biden's forgiveness plan: How it works, when to apply
Student loan pay pause extended through December
What President Biden's student loan forgiveness means for taxes
Lawmakers, consumer groups push back on forgiveness
The average burden per U.S. taxpayer will be $2,503.22, according to new estimates from the National Taxpayers Union that are based on the plan released this week.
That's up from the group's previous analysis, which estimated Biden's plan could cost the average taxpayer $2,085.59 based on the $10,000 in forgiveness per federal student loan borrower that had been anticipated.
The plan unveiled this week would be even more costly, largely due to an additional $10,000 in debt cancellation for up to 27 million Pell Grant borrowers. It also puts a 5% cap on repayment of undergraduate loans in relation to monthly incomes.
Different tax impacts across income spectrum
To be sure, the estimated cost per taxpayer is based on the assumption that policymakers would need to make up for the total cost of the forgiveness through tax increases, spending cuts, borrowing or a combination of those strategies.
Notably, the costs would not be spread evenly across the income spectrum, according to the National Taxpayers Union's estimates. Low-income taxpayers earning between $1 to $50,000 would have an average additional cost per taxpayer of $190. That would increase to about $1,040 for those with adjusted gross incomes between $50,000 and $75,000; $1,774 for those between $75,000 and $100,000; $3,791 for incomes of $100,000 to $200,000.
Taxpayers with the highest incomes, between $200,000 to $500,000, would have an average additional cost of $11,940.The National Taxpayers Union's latest calculations are based on an estimated $395 billion in net costs to taxpayers, based on a range of $386 billion and $405 billion in net costs to taxpayers.
Meanwhile, the Penn Wharton Budget Model now estimates debt cancellation alone will cost up to $519 billion. Loan forbearance will cost another $16 billion, the research found, while the new income-driven repayment could cost $70 billion.
About 75% of the student loan debt cancellation will benefit households earning $88,000 or less per year, according to the Penn Wharton Budget Model.
'Shifting one kind of borrowing to another'
The Committee for a Responsible Federal Budget estimates Biden's debt cancellation plan will cost between $330 billion and $390 billion. | 2022-08-27T12:46:31Z | www.cnbc.com | Biden's student loan forgiveness may cost taxpayers, prompt inflation | https://www.cnbc.com/2022/08/24/bidens-student-loan-forgiveness-may-cost-taxpayers-prompt-inflation.html | https://www.cnbc.com/2022/08/24/bidens-student-loan-forgiveness-may-cost-taxpayers-prompt-inflation.html |
Five police officers showed up at Rep. Marjorie Taylor Greene's home overnight in response to a "swatting" call, Georgia authorities said.
Rep. Marjorie Taylor Greene, R-Ga., speaks to reporters as she leaves the Capitol after the last vote of the week on Friday, May 14, 2021.
Police officers showed up at Rep. Marjorie Taylor Greene's home overnight after an alleged opponent of her stance on transgender rights made a false 911 call, authorities in Georgia said Wednesday.
The Rome Police Department at 1:04 a.m. ET dispatched five officers, who learned en route that they were headed to Greene's house, the report said. They rang the doorbell and were met by the Republican congresswoman, who "assured us there was no issue," the report said.
The department said it is working with the U.S. Capitol Police on the investigation, which remains active. The Capitol Police declined CNBC's request for comment.
"Right now, Congresswoman Greene's safety is our number one concern," Greene's spokesman, Nick Dyer, said in a statement to CNBC.
Greene first revealed being swatted in a tweet.
In an interview later Wednesday, Greene said she was startled by the police presence at her home, but decided not to carry a gun as she answered the door, "which was very out of norm for me."
The swatter endangered both her and the officers, Greene said in the interview with "Real America's Voice," a conservative outlet. "Whoever this person is, they deserve to be locked up," she said. | 2022-08-27T12:47:02Z | www.cnbc.com | Cops go to home of Rep. Marjorie Taylor Greene in response to 'swatting' call | https://www.cnbc.com/2022/08/24/cops-go-to-home-of-rep-marjorie-taylor-greene-in-response-to-swatting-call.html | https://www.cnbc.com/2022/08/24/cops-go-to-home-of-rep-marjorie-taylor-greene-in-response-to-swatting-call.html |
Published Wed, Aug 24 20227:33 PM EDT Updated Thu, Aug 25 20223:07 PM EDT
Vista Outdoor: "You know, Vista Outdoor if you actually got rid of the guns — I am a hunter — if you got rid of the guns and had just all the other stuff, I think the stock would be higher because that's the world we're in. Not saying it's a good world, bad world, but it is the world we're in."
On Thursday morning, Vista Outdoor emailed CNBC, pointing out it sold its firearm manufacturing segments in 2019. The company is in the process of spinning out its sporting products segment, which includes ammo maker Remington, creating a separate publicly traded firm. The other will be the outdoor segment. The transaction is expected to be completed in calendar 2023. | 2022-08-27T12:47:08Z | www.cnbc.com | Cramer's lightning round: There's really no reason to recommend Snap here | https://www.cnbc.com/2022/08/24/cramers-lightning-round-theres-really-no-reason-to-recommend-snap-here.html | https://www.cnbc.com/2022/08/24/cramers-lightning-round-theres-really-no-reason-to-recommend-snap-here.html |
Europe's energy crisis and the global hunt for clean power sources are creating a "new era for the nuclear industry," according to Société Générale. With the industry getting a fresh look from investors, the French bank put together a basket of stocks tied to the nuclear power. Even before Russia invaded Ukraine, sending energy markets reeling, nuclear power was seen as at least a partial answer to climate change concerns since fission doesn't release greenhouse gases. Nuclear waste, however, which takes hundreds or thousands of years to break down , must be carefully stored. Critics also point to safety concerns following several high-profile accidents, including Chernobyl and Fukushima. High costs have also burdened the industry, but Société Générale said that technological innovation, including small, modular reactors, can ease some of those concerns. The firm's new basket aims to give investors exposure to every step of the nuclear power process, from "uranium extraction to equipment makers and utilities." Among utilities, NextEra Energy is one of the companies Société Générale highlighted, noting that nuclear comprises 20% of Next Era's energy portfolio. The Florida-based utility also owns substantial wind and solar assets. Duke Energy and Dominion Energy are other ways to gain exposure to nuclear power, with the fuel source comprising 37% and more than 40%, respectively, of each company's power generation, according to Société Générale. The Inflation Reduction Act, which President Joe Biden signed into law earlier this month, includes funding for the industry . Beginning in 2024, for instance, utilities will get a credit of $15 per megawatt-hour for power that's generated from existing nuclear plants. The bill also includes production and investment tax credits, with some restrictions. "As demand grows for more clean energy generation, we are seeing utilities, corporations and the industrial sector looking at new nuclear to help meet their decarbonization goals," the Nuclear Energy Institute said in a statement after the House passed the Inflation Reduction Act. "The passage of the clean energy provisions in the IRA provide confidence to invest in not only nuclear's present but its future as well, opening a bright path toward the next generation of reactors," the industry group added. Another U.S.-based utility with exposure to nuclear power is Exelon , with the fuel making up 53% of the company's power fleet across more than 10 facilities. The International Energy Agency has promoted more nuclear power globally, calling it the "backbone of low-carbon electricity generation," alongside hydropower. To reach net zero emissions by 2050, the agency said that nuclear capacity must double between 2020 and 2050. Japan's Prime Minister on Wednesday said he wanted the government to consider building new nuclear power plants , citing uncertain global energy supplies and the need to cut carbon emissions. In its report, Société Générale also pointed to several U.S. industrial companies that are working to support nuclear power, including Flowserve and BWX Technologies . Flowserve has deployed more than 5,000 pumps and 15,000 valves across more than 200 nuclear reactors worldwide, according to the company's website. The U.S. does not currently have a robust domestic uranium mining industry, but some companies are looking to change that. Société Générale highlighted Uranium Energy and Energy Fuels , both of which are involved with uranium production. The companies each have a roughly $1 billion market cap. Also on Wednesday, the Global X Uranium ETF is on pace for its best day this year, rising as much as 10.6%. - CNBC's Michael Bloom contributed reporting. | 2022-08-27T12:47:33Z | www.cnbc.com | Here are stocks to play a new nuclear power era, according to SocGen | https://www.cnbc.com/2022/08/24/here-are-stocks-to-play-a-new-nuclear-power-era-according-to-socgen.html | https://www.cnbc.com/2022/08/24/here-are-stocks-to-play-a-new-nuclear-power-era-according-to-socgen.html |
Have questions about student loan forgiveness? The government has already made a surprising number of answers available.
For millions of Americans, learning Wednesday that the Biden administration plans to move ahead with sweeping student loan forgiveness likely sparked feelings of relief — followed by a lot of questions.
The government has already made a surprising number of answers available, though time will tell how smoothly the cancellation unfolds between the U.S. Department of Education, its loan servicers and millions of borrowers.
Borrowers eligible for Biden's student loan forgiveness are generally individuals who make less than $125,000 per year, or married couples or heads of households earning less than $250,000.
The Education Department said it will launch an application in which borrowers can input their income data and request the loan forgiveness.
The application will be available before the end of the year, the department said, and borrowers can sign up on its website for updates about the process.
It's the seventh extension of the pandemic-era relief policy started under the Trump administration and likely will be the final one. | 2022-08-27T12:47:45Z | www.cnbc.com | What you need to know about Biden's student loan forgiveness plan | https://www.cnbc.com/2022/08/24/heres-what-you-need-to-know-about-bidens-student-forgiveness-plan.html | https://www.cnbc.com/2022/08/24/heres-what-you-need-to-know-about-bidens-student-forgiveness-plan.html |
Nvidia (NVDA) reported fiscal second-quarter 2023 results after the closing bell Wednesday that were inline with the company's preannouncement earlier this month. However, third quarter guidance was disappointing versus beaten down estimates. The stock fell 4.5% in after-hours trading. Perhaps it would have dropped more had it not been down 9% coming into the earnings release. Revenue rose 3% to $6.7 billion, matching what Nvidia previously disclosed. Adjusted earnings per share of 51 cents dropped 51% year over year and were also in line with the results implied by the preannouncement. Adjusted gross margin of 45.9% was below 46.1% (plus/minus 50 basis points) that the company said in its preliminary results on Aug. 8. Bottom line Management should have indicated that things were a bit more dire than they led investors to believe with their preliminary results, given the forward guidance and cautious conference commentary. However, the report puts it all out there and serves to recalibrate investor expectations for the next few quarters. The question is: Now what? As far as we can tell, Gaming is still in the process of bottoming and the inventory flush could certainly take until the end of the year. Pro Visualization appears to be going through some of the same hardships as gaming in regard to the need to flush out inventory. While the Automotive segment was said to be inflecting, it is still too small to matter. U.S. data center spending remains resilient, but analyst questions on the call made it clear that they are on the lookout for cloud spending to be the "next shoe to drop in this rolling correction in semiconductors." China infrastructure spending was a headwind in the quarter that seems will continue in the near term. Nvidia may still be the best of the best — and to be clear, they are still the best in the industry and absolutely crucial to the secular growth trends that are artificial intelligence, cloud computing, and digitization. However, the reality is that even the best house on the block is going to have a hard time seeing its value go up if the neighborhood is bad — and the semiconductor neighborhood right now is downright brutal. The silver lining is: For the most part, none of what we just said is terribly new — at least not if you have been paying attention, and we have been. So, our thinking is this: In 2018, when a similar gaming glut took place Nvidia saw a peak to trough drawdown of about 54%. Recall, at the time, the market was hit by a Federal Reserve induced correction at the end of that year when investors thought Fed Chairman Jerome Powell was set to raise interest rates on autopilot. Shares back then went on a roughly 50% run over the next roughly four months before giving nearly all of it back over the following two. At the lows of this year, on July 1, Nvidia traded at around $145 per share, before going on a little greater than 30% run through early August. At that price point, NVDA was down a little over 56% from the November 2021 high of just over $333 per share. Given the similarities both fundamentally in terms of the inventory glut, as well as the concerns surrounding Fed tightening between then and now — not to mention the washout of crypto driven hype, which we reiterate has nothing to do with our investment thesis — we are trimming our price target to $220, which still represents a 28% premium to Wednesday's regular session close. We want to see shares give up a little more of this recent rally off the lows before getting more bullish. It is too late to try to get out and back in — but at around that $145 low, we think shares start get to interesting, especially should we see shares approach that level but catch support before that, which would also be another parallel to the 2018 action (the prior low holding). Additionally, we want to allow a bit more time to pass for the fundamentals to really bottom out. In essence we are looking for a bit more of a price correction or some sideways action that buys us time to see how things play out with the inventory flush before becoming more bullish on shares. Guidance Looking ahead to fiscal third-quarter, management forecasted the following on a non-GAAP (generally accepted accounting principles) basis. Again, the estimates noted below have been updated since the preannouncement. Revenue of $5.9 billion (plus/minus 2%) is below estimates of $6.9 billion. Weakness in gaming and pro visualization due to OEM (original equipment manufacturer) and channel partner efforts to reduce inventory to levels more in line with consumer demand are expected to be partially offset by resiliency in Data Center and Automotive. Adjusted gross margin of 65.0% (plus/minus 50 basis points) are better than the low roughly 64% bar established following the preannouncement. Nothing worth celebrating given we were looking for around 67% prior to the preannouncement but we'll take it as it does represent a significant bounce back from the reported quarter. Driving the rebound will be product mix as a higher mix of more profitable data center sales are expected to be a tailwind, though this will be offset by growth in Automotive, where profitability tracks below the companywide average. Additionally, on the conference call, management commented that they believe their longer-term gross margin profile, which has trended in the upper-60s remains intact. The company expects operating expenses of $1.82 billion, other expenses of approximately $10 million, and a tax rate of 9.5% (plus/minus 1%), and capital expenditures (capex )in the range of $550 million to $600 million. Based on the guide, analysts at Truist wrote in a note Wednesday evening that the implied earnings-per-share (EPS) outlook range is 68 cents to 77 cents, which even at the high-end is below estimates of 85 cents. Segment Q2 sales Data Center revenue, grew 61% to $3.81 billion, inline with the preannouncement. Though revenue here was a record, management noted that it came in below their expectations, attributing the weakness to supply chain disruptions. Speaking to demand, the team noted that revenue generated from North American hyperscale cloud providers (think the Amazons, Microsofts, and Alphabets of the world) doubled year over year. However, the strength was offset by weakness in China where infrastructure investment slowed significantly. Management called out that in China "the number of new technologies and software, the number of people using clouds, the number of cloud services is continuing to grow" — and as a result, they are confident that investments in the region will bounce back. On the call the team noted that "72% of the systems on the latest Top 500 list of the world's fastest supercomputers are powered by Nvidia, including 31 of 39 new systems." The bottom line is that while growth may be suppressed due to macroeconomic conditions, Nvidia remains the industry leader in accelerated cloud computing. We see no change in our longer-term view of the company's data center opportunity and expect the data center to become a greater piece of the revenue pie over time as the adoption of cloud computing increases. Gaming revenue fell 33% to $2.04 billion, inline with the preannouncement. As we learned when Nvidia preannounced results Aug. 8, gaming can be blamed for the bulk of the weakness versus the guidance provided on the first quarter earnings release. While the team highlighted softness in Europe related to Russia's war against Ukraine and Covid lockdowns in China, they added that "macroeconomic headwinds across the world drove a sudden slowdown in Consumer demand." As a result, they worked with channel partners to adjust prices and noted that in the second quarter — and to-date in the third quarter, they "have likely under-shipped gaming to our end demand significantly." While it is painful, the team remains confident in the longer-term growth of the industry and noted that by their estimated, GeForce sell-through is still up over 70% versus prior to the pandemic and that in peak concurrent users on the gaming platform Steam is up more than 70% over the same period. Put another way, while we are seeing weakness versus recent highs, if we zoom out a bit, the industry has still seen significant growth over the past three or so years. To this point, while sales may be down from the $3.06 billion level seen in year ago period, they are still up from the $1.65 billion level seen in 2020 and the $1.31 billion level seen in 2019. That is the issue when demand spikes, it can muddy the long-term picture and while segment sales are expected to decline again in the third (current) quarter, expectations are for that to be the trough before rebounding into 2023. Though we didn't get an exact timeline, it appears inventory correction efforts will last at least through the third (current) quarter if not a bit longer. Professional Visualization revenue fell 4% to $496 million, inline with the preannouncement. On the call, management commented that "a sequential increase in mobile revenue was more than offset by lower desktop revenue, particularly at the high end. As macroeconomic headwinds intensified, enterprise demand slowed, and OEMs worked to reduce inventory. [they] expect these trends to persist in Q3." While the segment is going through what management referred to as "a near term adjustment after doubling last year," they believe the addressable market to have expanded in recent years as hybrid work is here to stay. Automotive revenue increased 45% to $220 million, inline with the preannouncement. Management believes this was an inflection point for automotive revenues commenting that "strong growth was driven by auto AI solutions, which include AI cockpit and self-driving revenue, with particular strength in self-driving as new energy vehicle design wins ramp into volume." Looking ahead, management reiterated their expectation for the Automotive segment's $11 billion design win pipeline to translate into continued growth. OEM & Other revenue of $140 million dropped 66% year over year but was slightly ahead of the $130 million preliminary estimate. Capital Allocation In the second quarter, Nvidia returned a total of $3.44 billion to shareholders via dividends and buybacks. As of the end of the quarter, there was $11.93 billion remaining under the current authorization, which runs through December 2023. Management noted that they intend to continue share repurchases this fiscal year. (Jim Cramer's Charitable Trust is long NVDA, AMZN, MSFT, GOOGL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
A sign is posted in front of the Nvidia headquarters on May 10, 2018 in Santa Clara, California. | 2022-08-27T12:48:22Z | www.cnbc.com | Investing Club: Nvidia’s weak forward guidance serves to reset expectations | https://www.cnbc.com/2022/08/24/investing-club-nvidias-weak-forward-guidance-serves-to-reset-expectations-on-wall-street.html | https://www.cnbc.com/2022/08/24/investing-club-nvidias-weak-forward-guidance-serves-to-reset-expectations-on-wall-street.html |
Salesforce (CRM) reported a solid quarter after the closing bell Wednesday, but as the macro environment softened over the summer, so did the company's business outlook. Lowered forward guidance was a big disappointment. But deals are not going away, they are simply taking longer to close, a theme flagged by other enterprise software companies and not completely new news. The Dow stock dropped 6.5% in after hours trading. Revenue in the fiscal 2023 second-quarter rose 26% to $7.72 billion, in constant currency, edging expectations of $7.69 billion, according to Refinitiv. Constant-currency reporting helps strip out fluctuations in foreign currency to provide a clearer financial picture. Non-GAAP earnings per share of $1.19, inclusive of a 4-cent benefit from mark-to-market accounting on strategic investments, beat estimates of $1.02, according to Refinitiv. Operating margin — which investors are now watching more closely due to the importance of profitable growth at scale— was 2.5% on a GAAP basis and non-GAAP operating margin was 19.9%, beating estimates of 18.4%. Operating cash flow, another line item that's become increasingly important with the Federal Reserve raising interest rates, fell 13% from the previous year to $334 million, missing estimates of $612 million. Bottom line Salesforce said customers began to take a more "measured approach" to their business. But even in uncertain economic times, companies cannot afford to cut back on their digital transformation journeys, of which Salesforce is an indispensable partner. That's a big reason why we think you need to buy shares of CRM before things start to get better again. After making two different sales over the past few weeks in the $180s, one on July 29 and the other on Aug. 3. We also downgraded our rating to a 2 , our plan is to wait for the stock to washout for a few days and then look to buy back some of the stock we recently sold higher. Hopefully we able to do that before management's newly announced $10 billion repurchase program — the first ever in company history —starts kicking in. We are also lowering our price target to $240, which is still more than 30% higher than the stock's close of the regular trading session at $180. Companywide results Breaking down quarterly subscription and support revenue results by cloud: Sales cloud revenue increased 19% in constant currency to $1.7 billion. Some new wins in the quarter include CDW , Zscaler , and Schneider Electric . Service cloud revenue increased 18% in constant currency to $1.83 billion. Some new wins in the quarter include the U.S. Department of Veterans Affairs, Workday and Uber . Platform and other (including Slack, which Salesforce acquired on July 21, 2021) revenue increased 56% in constant currency to $1.48 billion. Some notable expanded users of Slack include the National Weather Service, Coursera, and MercadoLibre. Slack exceeded management's revenue expectations with $381 million in the quarter. This was the fifth consecutive quarter with more than 40% growth in customers spending more than $100,000 with Slack annually. Marketing and commerce revenue increased 22% in constant currency to $1.12 billion. A few marketing wins in the quarter include the expansion of its relationship with Live Nation, L'Oreal , and Tapestry , whose brands include Coach, Kate Spade and Stuart Weitzman. Revenue in data (which includes past acquisitions of Tableau and Mulesoft) increased 13% in constant currency to $1.02 billion. A few big wins in the quarter were Atlassian , Siemens Energy, CBRE Group , and King Power. On a geographic basis, in constant currency, sales increased 21% year over year in the Americas, 35% in Europe, the Middle East, and Africa (EMEA) and 31% in the Asia Pacific region (APAC). Regarding a few other closely watched industry metrics that provide visibility into Salesforce's revenue in the future: The remaining performance obligation (RPO), which represents all future revenue under contract that has not yet been recognized as revenue, ended the quarter at $41.6 billion, up 15% year over year. The current RPO (cRPO), which represents future revenue under contract that is expected to be recognized as revenue in the next 12 months, ended the quarter at $21.5 billion, up 19% in constant currency and matched estimates. Revenue attrition remained around record lows of 7.5%. Other Notes With its quarterly results, Salesforce announced a $10 billion share repurchase program. Benioff said the buyback news does not mean M & A is completely off the table, as management will continue to look for opportunities. Still, we view the repurchase program as a good use of the free cash flow the company generates. Management reiterated its commitment to disciplined margin, cash flow, and revenue growth. We, as shareholders, continue to agree with this philosophy because profitable growth is paramount when the Fed is raising rates. Mark your calendars for Salesforce's annual Dreamforce conference, Sept. 20-22 in San Francisco. This is the event where management highlights new innovations and features and a lot of big deals are typically made around this period. The Investor Day will be held on Sept. 21 , and we'll look for management to update its targets and projections at the event. MuleSoft revenue increased 15% year over year, and it's expected to return to being a tailwind to revenue growth in the back half of the year. Guidance On guidance for fiscal year 2023, management lowered its revenue outlook by approximately $800 million to the range of $30.9 billion to $31 billion, which is below estimates of $31.74 billion. Management now expects an $800 million headwind from foreign currency. Their previous view was $600 million. The rest of the guidance update reflects customers becoming more thoughtful in the way they buy, which Salesforce started to see in July. Sales cycles are getting stretched and deals are being inspected by higher levels of management. Despite this more cautious approach from customers, Benioff reiterated that digital transformations remains the number one priority for CEOs. On margins, management slightly lowered its GAAP operating margin outlook to roughly 3.6% from 3.8% but maintained its non-GAAP guide of 20.4%, an increase of 170 basis points year over year. It's good to see Salesforce's margin outlook hold up despite the lower than previously anticipated revenues. Non-GAAP earnings per share are now expected to be $4.71 to $4.73, down from $4.74 to $4.76, and below estimates of $4.75. The operating cash flow for fiscal 2023 outlook was lowered to 16% to 17% growth from 21% to 22%. For the third quarter of fiscal 2023, management expects revenue of $7.82 billion to $7.83 billion, which is below below estimates of $8.06 billion. This outlook includes a $250 million year-over-year headwind from foreign exchange rates. Non-GAAP earnings per share is expected to be $1.20 to $1.21, below estimates of $1.28. The cRPO is expected to grow 12% year over year, implying roughly $21.056 billion versus estimates of $21.647 billion. Foreign exchange is expected to be a 3 percentage point headwind. (Jim Cramer's Charitable Trust is long CRM. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
The Salesforce Tower, left, and the Salesforce West office building in San Francisco, California, U.S., on Tuesday, Feb. 23, 2021.
Jeff Marks44 min ago | 2022-08-27T12:48:34Z | www.cnbc.com | Investing Club: Salesforce's lower guidance reflects deals taking longer to close, not going away | https://www.cnbc.com/2022/08/24/investing-club-salesforces-lower-guidance-reflects-deals-taking-longer-to-close-not-going-away.html | https://www.cnbc.com/2022/08/24/investing-club-salesforces-lower-guidance-reflects-deals-taking-longer-to-close-not-going-away.html |
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