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We're initiating a position in off-price retailer TJX Companies (TJX), buying 350 shares at roughly $64.38 each. Following the Wednesday's purchase, TJX will represent about 0.75% of Jim Cramer's Charitable Trust, the portfolio we use the Investing Club. Off-price retailers tend to do best when there are disruptions in the supply chain and when retailers are flushed with inventory like they are now. When brand name merchandise starts to pile up and stores are forced to make room for new fashion and season trends, they are forced to mark down the excess and offload it to companies like TJX, which opportunistically pounce on the high-quality brands to sell it to customers at fire-sale prices. Part of TJX's business is apparel-focused, selling designer names and everyday brands for less through T.J. Maxx, Marshall's and Sierra stores. The company also operates home furnishings stores under the HomeGoods and HomeSense banners. The retailer offers a fun, treasure hunting experience for shoppers, thanks to its value prices of quality brands offered in its stores. TJX stock was not in our Bullpen, which we use as a watch list of names we're considering buying for the portfolio. However, we don't limit ourselves to just calling up Bullpen stocks, like we did with Starbucks (SBUX) on Monday. We're always on the look out for new companies to add and sometimes come across ideas while analyzing industry trends. Case in point: Back in June, we pointed TJX out as a winner from the inventory warnings of Walmart (WMT) and Target (TGT). Last week on "Mad Money," Jim highlighted it as what to buy to take advantage of the inventory glut that was evident as major retailers reported second-quarter earnings this month. We also discussed the stock on Wednesday's "Morning Meeting" for Club members, and how TJX can go to the full-price retailers with oversupply problems and get the pick of the litter. When you go over the conference calls at Target, Walmart, Macy's (M), Nordstrom (JWN), and many other retailers, it's clear this moment is nirvana for the off-price chains. Excess inventory has been a common theme throughout earning season. Retailers right now are working frantically to right-size inventory positions and discount items to get them out the door. Some companies are forced to get super promotional, and others have been scaling down future buying too. But a third component to fix inventory position is to sell to off-price chains, like what we described earlier. By the way, the part about taking less inventory for the future also helps these off-price chains. If a company like Target doesn't want this stuff anymore, but the makers of these products have already manufactured them, then the middlemen have to find another home for these products somewhere. While the off-price stores aren't their first choice — because these companies are cheap — in many cases, it's the only choice, because nobody else wants to buy in an inventory glut. So, right now, the off-price chains are getting an incredible opportunity to pick up all sorts of merchandise for next to nothing. But remember that's the long-term opportunity. It doesn't mean they're doing that great right now. Last week, TJX reported and the numbers were just so-so. The company's sales came in weaker than expected, with U.S. same-store sales down 5%, dragged down by HomeGoods. But their earnings came in a little higher than expected. Worse, TJX cut its full-year same-store sales forecast and slightly reduced its earnings forecast. When the market first digested the numbers, TJX shares opened lower. However, TJX shares closed the day higher, because management confirmed how great of a buying environment it is right now. On the call, CEO Ernie Herrman pointed out what we said earlier: "We are seeing extraordinary off-price buying opportunities in the marketplace and have no issues with overall availability. We are in a terrific inventory position, and we have plenty of open-to-buy to take advantage of the current environment. This allows us to offer even more exciting merchandise and value to our shoppers, which is our top priority every day." There are going to have tons of high quality products that they can sell at extremely low prices because they picked this stuff for next to nothing. "You need to think of TJX as a vulture: they're just waiting for other stores to keel over, then they can feast on the remains. You can practically hear them salivating for this marked down inventory that the big chains have no choice but to get rid of," Jim explained on "Mad Money. While same-store sales may have been ugly and the forecast for the current quarter wasn't great, on the conference call, management said their quarter-to-date same-store sales were tending in line with their guidance. That means the second quarter, the one they just reported, is likely the trough for these numbers and has us very bullish about the end of the year and the all-important holiday season. TJX Companies also returns cash to shareholders via dividends and buybacks. The current dividend yield is about 1.8%. Through the first half of its fiscal 2023, the company has repurchased a total of $1.3 billion of stock, retiring 21.4 million shares. The company expects to repurchase approximately $2.25 billion to $2.5 billion of stock in fiscal 2023. That leaves about $1 billion for the current quarter and the next. The company's current market capitalization is nearly $76 billion. We are initiating our TJX position with a price target of $74 per share (about 15% higher than current levels), representing roughly 21x fiscal year 2024 earnings estimates of $3.50, which represents growth from the $3.10 the company is estimated to earn in fiscal year 2023 (it's current year). We think this multiple is very reasonable given the fact the 5-year average on the next 12-month earnings is about 22x. Still, we plan to start relatively small in TJX to leave plenty of room to scale into the position over time on broader market weakness. We note that off-price peer Burlington Stores (BURL) is scheduled to report earnings Thursday morning before the opening bell. Since the group tends to get lumped together, we expect TJX will trade off that quarter, for better or for worse. Either way, we are not making a call on the BURL number as TJX is the superior operator in the group and this is a long-term investment, not a trade. (Jim Cramer's Charitable Trust will be long TJX following this trade. 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 clearance rack at T.J. Maxx clothing store in Annapolis, Maryland, on May 16, 2022, as Americans brace for summer sticker shock as inflation continues to grow. | 2022-08-27T12:48:40Z | www.cnbc.com | Investing Club: We're starting a new position in a stock that will benefit from retail's inventory glut | https://www.cnbc.com/2022/08/24/investing-club-were-starting-a-new-position-in-a-stock-that-will-benefit-from-retails-inventory-glut.html | https://www.cnbc.com/2022/08/24/investing-club-were-starting-a-new-position-in-a-stock-that-will-benefit-from-retails-inventory-glut.html |
Published Wed, Aug 24 20228:30 AM EDT Updated Thu, Aug 25 20226:03 AM EDT
Peloton's stock rallied to end the day up more than 20%.
Peloton's Chief Commercial Officer Kevin Cornils said there are already about half a million searches on Amazon each month for Peloton's products, based on research from a third-party consultancy, despite its lack of presence on the site before Wednesday.
Peloton's share price is down around 62% year to date, as of Wednesday's market close. Its market cap has fallen to around $3.7 billion, from as high as $50 billion in early 2021. | 2022-08-27T12:49:25Z | www.cnbc.com | Peloton to sell fitness equipment, apparel on Amazon | https://www.cnbc.com/2022/08/24/peloton-to-sell-fitness-equipment-apparel-on-amazon.html | https://www.cnbc.com/2022/08/24/peloton-to-sell-fitness-equipment-apparel-on-amazon.html |
Ukraine marks its 31st Independence Day today as well as the six-month mark of Russia's full-scale invasion, which began on Feb. 24.
Meanwhile, President Joe Biden announced a nearly $3 billion new security assistance package for Ukraine, its biggest yet.
Five ships carrying a total of 85,110 metric tons of agricultural products will depart Ukraine's ports tomorrow
The organization overseeing the export of agricultural products from Ukraine said that five ships carrying grains and other crops were approved to depart Ukrainian ports on Thursday.
US Ambassador to UN calls on forum to hold Russia accountable for 'violence and carnage' in Ukraine
New US Ambassador to the United Nations, Linda Thomas-Greenfield speaks after meeting with UN Secretary-General Antonio Guterres at the United Nations on February 25, 2021 in New York City.
U.S. Ambassador to the United Nations Linda Thomas-Greenfield said potential Russian war crimes are mounting in Ukraine.
"The evidence of Russian forces interrogating, detaining, and forcibly deporting hundreds of thousands of Ukrainians, including children, continues to mount. Their reasons are clear: They want to destroy Ukraine – its culture, its people, its very existence," Thomas-Greenfield said during a U.N. Security Council meeting.
"For all this violence and carnage, these hunger and humanitarian crises, these human rights abuses and threats to vulnerable groups. Russia and Russia alone bears sole responsibility," she added.
Thomas-Greenfield called on the international forum to hold Russia accountable.
WHO warns of inadequate healthcare in Ukraine, calls on Russia to end war
A medical worker takes care a patient who was injured during a Russian cruise missiles strike on Thursday at a hospital in Vinnytsia, Ukraine July 15, 2022.
The World Health Organization warned that Russia's war has severely impacted Ukraine's ability to provide adequate healthcare.
"No system can deliver optimum health to its people under the stress of war, which is why we continue to call on the Russian Federation to end this war," said Dr. Tedros Ghebreyesus, WHO Director-General in a statement.
"Though shaken, the health system has not collapsed," said Ghebreyesus, adding that the WHO will continue to support the Ministry of Health of Ukraine to restore disrupted services, displaced health workers and destroyed infrastructure.
He said that so far the WHO has delivered more than 1,300 metric tons of critical medical supplies to Ukraine. The supplies include power generators, ambulances, oxygen supplies for medical facilities, supplies for trauma and emergency surgeries and medicine to help treat non-communicable diseases.
Biden announces nearly $3 billion in security assistance for Ukraine
US President Joe Biden speaks in the Eisenhower Executive Office Building in Washington on July 28, 2022.
So far, the U.S. has committed more than $13.5 billion in security assistance to Ukraine since January 2021.
1.7 million Ukrainians are in need of access to heat sources as winter approaches, U.N. estimates
A woman cooks in the yard of a house in the city of Mariupol on June 4, 2022, amid the ongoing Russian military action in Ukraine.
United Nations Under-Secretary-General Rosemary DiCarlo warned that Ukrainians will need additional support as the harsh winter season approaches.
"As winter approaches the destruction caused by war, combined with the lack of access to electricity due to damaged infrastructure could become a matter of life or death," DiCarlo said during a meeting of the U.N. Security Council
"The United Nations estimates that 1.7 million people are already in need of urgent assistance with heating, shelter repair and other winterization preparations as temperatures in parts of the country are expected to decline to minus 20 degrees Celsius," she added.
DiCarlo said U.N. organizations were working with Ukraine to address their winterzation efforts.
'There is no such war crime that the Russian occupiers have not yet committed on the territory of Ukraine,' Zelenskyy says in dramatic UN appearance
Ukrainian President Volodymyr Zelensky appears on screen before addressing the UN Security Council Meeting on the maintenance of peace and security of Ukraine on August 24, 2022, at UN headquarters in New York.
Timothy A. Clary | AFP | Getty Images
Ukrainian President Volodymyr Zelenskyy addressed the United Nations Security Council as his war-torn country celebrates its 31st Independence Day.
"There is no such war crime that the Russian occupiers have not yet committed on the territory of Ukraine," Zelenskyy told the international forum.
"If Russia is not stopped now in Ukraine, if it's not stopped by the victory of Ukraine then all these Russian murderers will probably end up in other countries," he warned.
Zelenskyy, who spoke via video teleconference, called on the United Nations body to hold Russia accountable for its unprovoked war in Ukraine.
UK celebrates Ukrainian Independence Day with sunflower arch outside No. 10
Larry the cat stands by a flower arch of Ukraine's national flower, sunflowers, erected outside Number 10 Downing Street in London to mark Ukrainian Independence Day on August 24, 2022.
Susannah Ireland | AFP | Getty Images
The British government celebrates Ukraine's Independence Day by erecting a flower arch over the entrance to Number 10 Downing Street in London.
The sunflower, Ukraine's national flower, is seen with pops of blue flowers to further symbolize the colors of the national flag.
Seen under the flower arch is a 15-year-old tabby cat named Larry that lives in the Number 10 residence.
Civilians are trying to leave Kyiv over fears of intensified Russian strikes, official says
Numerous civilians are trying to leave the Ukrainian capital of Kyiv as fears grow over Russian strikes around the period of Ukraine's Independence Day, Aug. 24, an adviser to President Volodymyr Zelenskyy said.
There is "certainly some concern" that a Russian attack could hit strategic parts of Kyiv, particularly government areas, presidential advisor Alex Rodnyansky said.
Ukrainians arrive at Khreschatyk Street to see the seized military equipment and weapons including tank and motorized artillery systems belonging to the Russian army displayed by Ukraine ahead of the country's 31st anniversary of Independence Day in Kyiv, Ukraine on August 21, 2022.
And according to the head of Ukraine's intelligence directorate, Andriy Yusov, Russian President Vladimir Putin is "really obsessed with dates and symbols, so it would be logical to be on the lookout and be prepared for independence day to be attacked."
Celebrations have been canceled and large gatherings banned for most of this week as Kyiv remains on high alert.
War could leave Ukraine’s environment with a ‘toxic legacy for generations to come,’ UN warns
TOPSHOT - Smoke rises from an oil refinery after an attack outside the city of Lysychansk in the eastern Ukranian region of Donbas, on May 22, 2022, on the 88th day of the Russian invasion of Ukraine.
Aris Messinis | AFP | Getty Images
United Nations investigators said the war in Ukraine "could leave the country and region with a toxic legacy for generations to come," according to preliminary monitoring reports from the region.
The United Nations Environment Program, or UNEP, found thousands of possible incidents of air, water and land pollution and the degradation of ecosystems, including risks to neighboring countries.
"The mapping and initial screening of environmental hazards only serves to confirm that war is quite literally toxic," wrote UNEP Executive Director Inger Andersen in the report.
"The first priority is for this senseless destruction to end now. The environment is about people: it's about livelihoods, public health, clean air and water, and basic food systems. It's about a safe future for Ukrainians and their neighbors, and further damage must not be done," she added.
Photos: Ukraine's Independence Day and commemoration of lives lost to war
Two boys walk with a flag as dignitaries and members of the public attend a ceremony in the Na Valakh park on Independence Day of Ukraine on August 24, 2022 in Lviv, Ukraine.
Dignitaries and family's attend a ceremony for the fallen soldiers of Ukraine on the Field of Mars on August 24, 2022 in Lviv, Ukraine.
Dignitaries and families attend a ceremony at the graves of fallen soldiers in Lychakiv cemetery on August 24, 2022 in Lviv, Ukraine.
European Commission President Ursula von der Leyen (C) takes part of a ceremony at the Grand-Place in Brussels to celebrate Ukraine's Independence Day on August 24, 2022.
Kenzo Tribouillard | AFP | Getty Images
— Getty Images
UK Prime Minister Boris Johnson visits Kyiv on Ukrainian Independence Day
British Prime Minister Boris Johnson visited Kyiv to celebrate Ukraine's Independence Day.
"What happens in Ukraine matters to us all. That is why I am in Kyiv today. That is why the UK will continue to stand with our Ukrainian friends," Johnson wrote on Twitter.
"I believe Ukraine can and will win this war," he added.
Johnson, who was one of the first world leaders to visit Ukrainian President Volodymyr Zelenskyy in Kyiv following Russia's invasion, has quickly become one of the most visible Western supporters of Ukraine.
'Extraordinary courage and dedication to freedom': Biden congratulates Ukraine on Independence Day
The White House issued a statement from President Joe Biden congratulating Ukraine on its 31st anniversary of independence, in which he reaffirmed his administration's support for the country in its war against Russia.
"Over the past six months, Ukrainians have inspired the world with their extraordinary courage and dedication to freedom. They have stood resolute and strong in the face of Russia's full scale invasion of Ukraine. And today is not only a celebration of the past, but a resounding affirmation that Ukraine proudly remains – and will remain – a sovereign and independent nation," Biden's statement read.
U.S. President Joe Biden signs into law S. 3522, the "Ukraine Democracy Defense Lend-Lease Act of 2022" at the White House in Washington, May 9, 2022.
It highlighted the latest U.S. security assistance package for Ukraine totaling roughly $2.98 billion, its largest yet. In the past six months since the war began, Ukraine has lost thousands of civilian and combatant lives, seen swathes of cities and infrastructure destroyed, and had its population depleted by at least 10 million as people flee to other countries.
"I know this independence day is bittersweet for many Ukrainians as thousands have been killed or wounded, millions have been displaced from their homes, and so many others have fallen victim to Russian atrocities and attacks," Biden's statement continued.
It added that the U.S. "looks forward to continuing to celebrate Ukraine as a democratic, independent, sovereign and prosperous state for decades to come."
Former Russian mayor arrested on charges of discrediting military
The former Russian mayor of Yekaterinburg, Russia's fourth-largest city, was arrested and charged with discrediting the country's military, in the latest example of the Kremlin's harsh laws against dissent.
Yevgeny Roizman, 59, was Yekaterinburg's mayor from 2013 to 2018 and had already been fined earlier this year under Russia's law that bans any activity "discrediting" the military or spreading "fake information" about its operations.
The law came into place shortly after Russia launched its war against Ukraine, which it calls a "special military operation." Russian authorities are well known to label criticism as equivalent to spreading fake information.
According to Reuters, the former mayor said he had been arrested "basically for one phrase, 'the invasion of Ukraine'."
Roizman could serve up to five years in prison if convicted. A few similar arrests of local officials and journalists have been made in previous months.
Biden announces new $3 billion military aid package for Ukraine on its Independence Day
U.S. President Joe Biden delivers remarks on arming Ukraine, after touring a Lockheed Martin weapons factory in Troy, Alabama, May 3, 2022.
U.S. President Joe Biden announced a new nearly $3 billion military aid package for Ukraine, the largest yet since Russia launched its full invasion of Ukraine on Feb. 24.
"The United States of America is committed to supporting the people of Ukraine as they continue the fight to defend their sovereignty," a White House statement from the president said.
"I am proud to announce our biggest tranche of security assistance to date: approximately $2.98 billion of weapons and equipment to be provided through the Ukraine Security Assistance Initiative," the statement said. "This will allow Ukraine to acquire air defense systems, artillery systems and munitions, counter-unmanned aerial systems, and radars to ensure it can continue to defend itself over the long term."
The U.S. is by far the largest supplier of military and financial aid to Ukraine as it fights to defend itself from Russian forces, and has committed more than $10.5 billion to the country in the last six months.
Ukrainian service members unpack Javelin anti-tank missiles, delivered by plane as part of the U.S. military support package for Ukraine, at the Boryspil International Airport outside Kyiv, Ukraine February 10, 2022.
Valentyn Ogirenko | Reuters
UK could 'toughen up' visa requirements for Russians, defense secretary says
The U.K. may decide to toughen visa conditions for Russians entering the country, British Defense Secretary Ben Wallace told BBC Radio, though he questioned the wisdom of an outright ban on Russian citizens, which has been called for by some European leaders.
"I certainly think we can toughen up the conditions of our visas. I am not sure whether an outright ban is the right way," Wallace said.
"I think that's a matter for the home secretary to look at. But I don't like ... watching oligarchs' wives or indeed Russian senior officials' wives enjoying themselves in Greece or the south of France, or on superyachts around the world while their army is committing war crimes in Ukraine," he added.
Estonia, Finland and the Czech Republic have all called for an EU-wide ban on the entry of Russian tourists from the Schengen free movement area. The move would serve as further punishment for Russia's invasion of Ukraine, supporters of the ban say.
U.S. President Joe Biden has also signaled he is not in favor of an outright ban on Russian travelers.
The end of the Russia-Ukraine war is not in sight, says think tank
A boy with Ukrainian national flags poses on a destroyed Russian military vehicle displayed on the main street of Khreshchatyk in Kyiv, as part of the country's Independence Day celebrations. | 2022-08-27T12:49:56Z | www.cnbc.com | Russia-Ukraine war updates for August 24, 2022 | https://www.cnbc.com/2022/08/24/russia-ukraine-live-updates.html | https://www.cnbc.com/2022/08/24/russia-ukraine-live-updates.html |
Growth stocks have taken a hit this year as the Federal Reserve raises rates to battle inflation, especially battering the tech-heavy Nasdaq 100 . The index is down more than 20% in 2022 and off by 15.8% over the past 12 months. Still, some investors want exposure to growth names and have adopted a so-called GARP strategy this year. Growth at a reasonable price, otherwise known as GARP, is a strategy that bridges attributes from both growth and value investing, generally including companies with reasonable valuations relative to the broader market along with consistent sales growth and earnings. To find the names meeting the GARP criteria, CNBC Pro used FactSet to screen for stocks with estimated earnings per share growth of 8% this and next year, as well as a forward price-to-earnings ratio below the Nasdaq 100's 24. The stocks that made the cut are also well liked by analysts, with more than 50% rating them as a buy. The consensus price target for each stock implies upside of more than 10%. Here are the names that made the cut: Booking Holdings is expected to grow earnings per share the most this year — by 108.7% — among the stocks that met the criteria. Shares of the travel company are down about 16% this year and sit 26% off their highs, but could rally 21.2% going forward. About 58% of analysts have a buy rating on the stock. The company's earnings next year are expected to expand by about 25%. Three semiconductor names also made the cut including Marvell Technology , which was the most loved stock by analysts — with nearly 81% rating it a buy. Semiconductor stocks have tumbled in 2022 amid supply chain constraints and growth fears. Marvell's shares have plummeted more than 44% from their highs but could rally another 53.8%, based on the consensus price target. The company is expected to grow earnings per share by 48.7% this year and 24.2% in 2023. Advanced Micro Devices and Broadcom also made the cut, down about 35% and 21%, respectively, this year. Analysts expect AMD to grow earnings by nearly 56% in 2022 and 11.4% in the year ahead. A little over 68% of analysts see Pinduduo as a buy, with an expected 44% upside based on the consensus price target. The China-based e-commerce giant, which saw shares jump this week on news that it's reportedly expanding to the U.S., is expected to grow earnings per share by about 19% this year and 36.7% in 2023. Financial technology stock Fiserv was the only positive stock year to date that made the list. | 2022-08-27T12:51:10Z | www.cnbc.com | These Nasdaq stocks are cheap relative to the broader market and expected to grow earnings | https://www.cnbc.com/2022/08/24/these-nasdaq-stocks-are-cheap-relative-to-the-broader-market-and-expected-to-grow-earnings.html | https://www.cnbc.com/2022/08/24/these-nasdaq-stocks-are-cheap-relative-to-the-broader-market-and-expected-to-grow-earnings.html |
U.S. Treasury yields rise as investors absorb economic data, look ahead to Fed conference
U.S. Treasury yields were higher on Wednesday, as investors digested a fresh batch of economic data and Treasury auctions.
The yield on the benchmark 10-year Treasury note rose nearly 6 basis points to 3.111%. The 10-year yield climbed above the 3% for the first time in a month earlier in the week.
The yield on the 30-year Treasury bond gained 6 basis points to 3.318%, while the yield on the short-term 2-year Treasury note was about 7 basis point higher, trading at about 3.401%. Yields move inversely to prices, and a basis point is equal to 0.01%.
Pending home sales declined 1% from June to July, according to the National Association of Realtors. Sales were down 19.9% compared with a year ago. | 2022-08-27T12:51:29Z | www.cnbc.com | U.S. bonds: Treasury yields in focus as investors await Fed conference | https://www.cnbc.com/2022/08/24/us-bonds-treasury-yields-in-focus-as-investors-await-fed-conference.html | https://www.cnbc.com/2022/08/24/us-bonds-treasury-yields-in-focus-as-investors-await-fed-conference.html |
Billionaire investor Ron Baron said he has been picking up bargains as the market rebounded from its turmoil in June. The Baron Capital Chairman and CEO was one of the few on Wall Street that correctly called the big comeback in stocks. On June 17, Baron told CNBC that this was a once-in-a-lifetime buying opportunity , and it was the day the S & P 500 hit its 52-week low. The equity benchmark has since rebounded 14% from that bottom. "This is an opportunity that started then and continues now," Baron said on CNBC's "Squawk Box" Thursday. "I can't tell you this was the bottom. Who knows. But the bottom line is that these are all really attractive prices, really attractive time and we've been buying then, buying since and buying continuously." The widely followed investor said he's been buying companies with great growth potential to hedge against soaring inflation, instead of the traditional vehicles like commodities. "We're investing in growth companies that are our hedge against inflation. We're not investing in commodities or bitcoin or gold," said Baron. "We're just investing in companies growing more than the economy." Baron said he has been buying shares of medical apparel company Figs in recent months. He called the company the "Lululemon of health care," referring to one of the fastest growing apparel stocks of the past decade. The investor said he remains a longtime bull in Tesla . Meanwhile, he revealed that his biggest purchases in the past two months included $100 million worth of SpaceX investments. "I love Tesla. We've been investing in Tesla for eight years now. We've made about 20 times our money," said Baron. "I think in the next 10 years, Tesla is going to be the largest company in the world and in the 10 years after that it will be challenged by SpaceX." | 2022-08-27T12:53:04Z | www.cnbc.com | Billionaire investor Ron Baron has been loading up on stocks. Here’s what he’s been buying | https://www.cnbc.com/2022/08/25/billionaire-investor-ron-baron-has-been-loading-up-on-stocks-heres-what-hes-been-buying.html | https://www.cnbc.com/2022/08/25/billionaire-investor-ron-baron-has-been-loading-up-on-stocks-heres-what-hes-been-buying.html |
A Chipotle Mexican Grill sign is seen in the Park Slope neighborhood in the Brooklyn borough of New York City.
"Chipotle pulled in revenue of $7.5 billion last year, and just as we're seeing workers of all ages and backgrounds across the country take on these corporate giants, it's so inspiring to see Chipotle workers stand up and demand more from a company that can clearly afford it," Scott Quenneville, president of Local 243, said in a statement. "The Teamsters have these workers' backs. They're going to have a union they can be proud of, that knows how to get things done."
The Lansing location was the second-ever Chipotle restaurant to file a petition with the NLRB to unionize.
Chipotle accused of union busting after shuttering store in Maine | 2022-08-27T12:53:28Z | www.cnbc.com | Chipotle restaurant in Michigan votes to unionize, in a first for the chain | https://www.cnbc.com/2022/08/25/chipotle-restaurant-in-michigan-votes-to-unionize-in-a-first-for-the-chain.html | https://www.cnbc.com/2022/08/25/chipotle-restaurant-in-michigan-votes-to-unionize-in-a-first-for-the-chain.html |
The Department of Justice on Thursday filed a proposal in federal court detailing redactions the department wants an affidavit used to obtain a search warrant for former President Donald Trump's residence in Florida if that affidavit were to become public.
The DOJ's suggestions had been requested by a magistrate judge in U.S. District Court for the Southern District of Florida, who is considering requests from media outlets and others to unseal the affidavit, which led to the Aug. 8 raid on Trump's home at his Mar-a-Lago club in Palm Beach.
The DOJ's proposal, which itself will remain under seal for now by court order, was expected to suggest extensive blacking out of portions of the affidavit because of the department's concern that full public disclosure of the document could put FBI agents or witnesses at risk, or undermine an ongoing criminal investigation.
Court documents have revealed the DOJ is investigating possible violations of laws related to espionage and obstruction of justice.
Shortly after the proposal was filed, a group of media companies filed a motion asking the judge to unseal portions of the DOJ's legal brief arguing for the redactions.
"Like the search warrant affidavit itself, the Brief is a judicial record to which a presumption of public access applies," that motion by the media groups said.
"As this Court has already recognized, there is an 'intense public and historical interest in an unprecedented search of a former President's residence,' and the government bears the burden of demonstrating that 'a sufficiently important interest in secrecy" justifies sealing,' " the motion said.
The media groups include NBCUniversal, the parent company of CNBC. | 2022-08-27T12:53:52Z | www.cnbc.com | Trump Mar-a-Lago raid search warrant: DOJ files proposed redactions | https://www.cnbc.com/2022/08/25/doj-files-proposals-for-trump-search-warrant-affidavit.html | https://www.cnbc.com/2022/08/25/doj-files-proposals-for-trump-search-warrant-affidavit.html |
Hedge fund performance has picked up along with the rest of the stock market since indexes bottomed in mid-June, according to the latest Goldman Sachs survey of 13F filings from almost 800 hedge funds with $2.4 trillion in assets. Goldman said the average equity hedge fund is up more than 4% since the start of July. The bank also said that its basket of "Hedge Fund VIPs" has outperformed the broader market since the June low. This basket consists of the 50 stocks that are most commonly held in the top 10 positions of fundamental hedge funds. During the second quarter, it saw Amazon replace Microsoft as the single most popular long position among hedge funds. Meanwhile, Apple dropped out of the top five, replaced by Visa. Goldman also said the basket, which sees additions and deletions each quarter depending on hedge fund holdings, has outperformed the S & P 500 in 59% of all quarters since 2001. The bank also said that 14 new names made the list, including Advanced Micro Devices, Atlassian, Mercado Libre, PayPal and Charles Schwab. AMD shares dropped 30% in the second quarter but have popped 25% since June 30. Atlassian, Mercado Libre, PayPal and Schwab are also up sharply this quarter. 'High Hedge Fund Concentration' Goldman also looks at stocks where hedge funds control the greatest amount of individual companies' total market capitalization. This basket of the "most concentrated hedge fund positions" in the S & P 500 has outperformed the broader market in 60% of the quarters since 2001. This "High Hedge Fund Concentration" group of 20 stocks has lagged the broader market since May after outperforming earlier in the year. The latest quarter saw six additions to Goldman's high concentration basket: Allegion (9% of total market cap owned by hedge funds as of June 30) CF Industries (10%) Etsy (9%) PENN Entertainment (10%) Seagate Technology (9%) Synchrony Financial (9%) —CNBC's Michael Bloom contributed reporting.
Hedge funds have a new favorite stock and it's Warren Buffett's Berkshire Hathaway | 2022-08-27T12:54:53Z | www.cnbc.com | Hedge funds are riding these stocks to better returns, Goldman says | https://www.cnbc.com/2022/08/25/hedge-funds-are-riding-these-stocks-to-better-returns-goldman-says.html | https://www.cnbc.com/2022/08/25/hedge-funds-are-riding-these-stocks-to-better-returns-goldman-says.html |
If you're looking for stocks to buy and hold over the next year, Morgan Stanley has compiled their list of favorites. The bank's "vintage values" list is compiled of names, mostly mid- to large-caps, that Morgan Stanley Research thinks are poised to realize superior risk-adjusted returns over the next 12 months. "The list has a bias toward high-quality stocks; although it screens as more expensive than the market on several multiples-based metrics, it is more attractive on key cash-flow-based valuation measures," Michelle Weaver wrote in the note Wednesday. To be sure, the average stock in the portfolio is trading at an 11% premium to the market on a forward price-to-earnings basis, and a 17% premium on a price-to-sales basis. "However, Vintage Values 2023 is materially less expensive than the index based on Enterprise Value-to-Operating Cash Flow and carries a more attractive FCF yield (5.0% vs. 4.7% for the market)," said Weaver. In addition, the group is skewed to large-cap stocks and growth. Morgan Stanley sees Amazon as a solid bet going forward, as the company is gaining market share in retail and e-commerce and has a multidecade secular adoption cycle in cloud computing. The company's high-margin businesses should continue to produce greater profitability while allowing Amazon to invest in growth. Amazon shares are down 18% year to date, but they've rallied 28% in the third quarter. The group also sees luxury automaker Ferrari as a winner that should continue to grow through new customers, new segments and geographies. In addition, the company's move towards electric vehicles is additive to the brand and its margins, according to Bank of America. Other analysts agree – Alliance Bernstein noted that Ferrari is poised to withstand a recession as its one of the top luxury car brands. Ferrari shares are up 11% this quarter but have lost 20% in 2022. Morgan Stanley is one of the biggest bulls on Wall Street when it comes to Palo Alto Networks and sees the company as becoming the first in cybersecurity to reach a $100 billion valuation in the next two years. Following the company's latest earnings beat, Morgan Stanley noted that it expects the firm to continue to set itself apart from its competition. Drugmaker Eli Lilly is a top pick as it has the most robust new product cycle outlook in Pharma, and will potentially launch five new drugs in the next two years. Those new launches should bring in considerable sales which will help boost the company top line, expand operating margins and lead to share growth. Monster Beverage has strong international growth and a compelling current valuation, Morgan Stanley said. —CNBC's Michael Bloom contributed to this report. | 2022-08-27T12:54:59Z | www.cnbc.com | Here are Morgan Stanley's favorite stocks for the next 12 months | https://www.cnbc.com/2022/08/25/here-are-morgan-stanleys-favorite-stocks-for-the-next-12-months.html | https://www.cnbc.com/2022/08/25/here-are-morgan-stanleys-favorite-stocks-for-the-next-12-months.html |
Relief may not include 'commercially held FFEL loans'
The federal government began lending to students on a large scale in the 1960s. Back then, though, it didn't directly give out student loans. Instead, it guaranteed the debt provided by banks and nonprofit lenders, under what is now known as the Federal Family Education Loan (FFEL) program. That program was completely eliminated in 2010, after lawmakers argued that it would be cheaper and simpler to directly lend to students. Nearly 10 million people still hold FFEL loans, according to Kantrowitz.
Because much of the debt is still commercially held, and not with the Education Department, there's concern that it won't be included in Biden's forgiveness. These loans also weren't covered by the Covid pandemic-era payment pause on federal student loans, prompting criticism from advocates.
"The broad student loan forgiveness is available for the same loans as are eligible for the payment pause," Kantrowitz said. "It does not include commercially held FFEL loans."
But there is a workaround for ineligible FFEL loans
Even if your FFEL loan is commercially held, all hope may not be lost.
A spokesperson for the U.S Department of Education said borrowers with those loans can call their servicer and consolidate them into the Direct Loan Program to become eligible for forgiveness.
The broad student loan forgiveness is available for the same loans as are eligible for the payment pause and interest waiver. It does not include commercially held FFEL loans.
higher education expert | 2022-08-27T12:55:55Z | www.cnbc.com | How to tell if your student loans are eligible for forgiveness | https://www.cnbc.com/2022/08/25/how-to-tell-if-your-student-loans-are-eligible-for-forgiveness.html | https://www.cnbc.com/2022/08/25/how-to-tell-if-your-student-loans-are-eligible-for-forgiveness.html |
Undecided? Here are 3 questions we ask ourselves before selling a troubled stock
In the Investing Club, we take a long-term view on our holdings. But in the short term, there can be unfavorable factors that impact a company's fundamentals, and a winning stock can turn into a losing trade. This is something we have espoused and stressed in past commentary. "Buy and homework," as Jim Cramer likes to say. That's his take on "buy and hold" investing because you never want to be static. You always want to be stress-testing your holdings, especially the ones that aren't working. Human nature may tell you to ride the stock down a bit further in hopes of a reversal, but it's best to come to terms with your losses and take them as learning opportunities when the situation calls for it. This can allow you to free up capital for the next possible buying opportunity. As we've pointed out in the past, you can always make your money back on another stock. Hoping and praying for a turnaround is not a strategy. It may be tempting to consider selling when a stock it's steadily falling well below your cost basis, but that's not enough of a reason to move on. We don't care about where stocks came from, we care about where they are headed next. But there are some tell-tale markers that can determine when it's time to start thinking about bowing out rather than hold on to a stock that could cost you further. When managing our own portfolio, these are three questions that we ask ourselves that could also be beneficial to Club members. We also included examples of the lessons we learned in exiting certain positions that no longer fit our investing criteria or the brutal market environment this year. It's kind of the flip side of our story earlier this month on when to trim winners . 1. Have the fundamentals of a company changed? A break in a company's fundamentals can come in many forms, including a change in forward guidance, a decline in profits or a shift in a company's strategy that worsened the business. We saw some of these factors at play with former Club holding American Eagle (AEO), which ultimately led to our decision to part ways with the specialty retailer. When we first bought American Eagle, the retailer recorded a strong performance in the first half of 2021, when it had benefitted from consumers spending their Covid pandemic stimulus checks. Strong consumer demand for its loungewear led to sales growth, which improved the retailer's profitability and operating margins. We bought some more into some retail weakness heading into 2022, before the full extent of the inflationary headwinds that came to define this year came into focus. But as economic uncertainties and what turned about to be anything-but-transitory inflation started to kick in, American Eagle was operating in a different environment. The company's quarterly earnings started to shed light on troubles the retailer had been facing. Higher input costs ate into margins, supply chain issues persisted due to factory shutdowns in Asia and consumer preferences started to shift away from what was popular during the pandemic. The retailer took an $80 million loss due to elevated freight costs in its fourth quarter of 2021 reported on March 2. Management provided a cautious forward guide for 2022, expecting a lower operating profit in the range of $550 million to $600 million compared to 2021's adjusted operating profit of $603 million. Rising prices also spurred concerns that consumers would scale back their discretionary apparel purchases. With this, American Eagle no longer had pricing power, or the ability to increase prices on its items without impacting consumer demand. With multiple stressors on the retail sector, we exited the rest of our AEO position on May 19 , one day after getting rid of half. We took the losses in what we call a high-grading move , shifting money into a stock we felt was right for the time: Johnson & Johnson (JNJ). Health-care stocks tend to be resistant to economic downturns because people have historically been loath to skimp on their wellness. Again, this goes to the idea that you cut losses and start to build into better names. (AEO has lost about 50% year to date.) Lesson learned: From our American Eagle holding, we were reminded that you can't be worried to sell when the original story behind owning a stock changes. As a matter of principle, when you buy a stock for a certain reason, that investment thesis should hold true throughout the time it's in your portfolio. 2. Were promises made and never delivered? We lost conviction in payment processing company PayPal (PYPL) because management was doing a poor job at setting expectations around business growth as it was transitioning out of a pandemic economy driven by e-commerce. One of PayPal's pressure points was its longer-than-anticipated separation from eBay (EBAY), which eventually revealed a much larger impact on growth than what management had reported. After eBay and PayPal separated into two independent companies in 2015, eBay started to transition to its own payments system and away from using PayPal's platform. This was a nastier separation than expected, making it unclear how it could impact PayPal's growth rate. At the time we held PayPal, management had promised growth after the separation — but revenue excluding eBay actually declined. PayPal CEO Dan Schulman provided upbeat comments in a November 2021 "Mad Money" interview with Jim, leading us to believe that its problems were behind the company. But that was followed by earnings misses and weak forward guidance, which made us question management's credibility. In the fourth quarter of 2021 , which reported in February, PayPal provided mixed results and lower-than-expected estimates for the first quarter. PayPal delivered $1.11 earnings per share versus $1.12 consensus estimates and forecasted 2022 revenue growth of 15% to 17% when analysts had expected 17.9% growth in 2022. In the first quarter of 2022 released in April, we were discouraged by PayPal's lower net revenues of $6.5 billion versus the previous quarter's net revenues of $6.9 billion. Another red flag was PayPal's speculation around acquiring social media platform Pinterest (PINS). What would have been the biggest acquisition of a social media platform ended in PayPal addressing what it called "market rumors." PayPal announced in an October press release that it wasn't pursuing an acquisition with Pinterest, sparking concerns of how it would increase new active accounts. Apart from PayPal's multiple execution problems, we also considered how macro challenges could weigh on the company. PayPal's post-pandemic business had trouble keeping up with its strong pandemic performance. We were concerned about a slowdown in e-commerce growth, supply chain challenges, and the broader market turning against tech stocks. (PayPal's stock price has fallen about 50% year to date.) We also weren't too keen on PayPal's exposure to cryptocurrency through its crypto platform. In the first half of the year, crypto had been selling off, so there was uncertainty around how much PayPal could be impacted. Lesson learned: When a company reports a number of bad quarters in a row, even if management says everything is OK, it's time to move on from the situation because the stock will likely sit in the penalty box for an extended period. 3. Are the Fed and the market working against you? The phrase, "don't fight the Fed" refers to positioning your investment portfolio with companies that could benefit from the Federal Reserve's monetary policy, or at least not get crushed by it. We think this is a good mantra to follow because the direction interest rates take can have a considerable influence on the market. In 2020, the Fed lowered interest rates to near zero and took other extraordinary steps to try to stimulate the economy in the early days of the Covid pandemic. This created liquidity, much of which made its way into the stock market. When Wall Street anticipated a change in the Fed's monetary policy at the start of 2022, stocks steadily sold off, eventually going into a bear market. In early April, two of the most dovish Fed Governors gave separate speeches describing the harmful effects of inflation. We took their comments seriously and viewed this event as a sell , sell , sell moment for higher multiple and economically sensitive stocks. Their words meant that the Fed had finally gotten serious about raising interest rates and slowing the economy down to combat inflation. Over two days back then, April 5 and April 6, we exited Nucor, lightened up on Microsoft (MSFT) twice, and trimmed Amazon (AMZN), Ford (F), and Marvell Technology (MRVL). Lesson learned: In the midst of a Fed policy change, you can't be afraid to sell a stock that has fallen because of a shift toward a tightening cycle that originally benefitted from a loose monetary policy. (Jim Cramer's Charitable Trust is long AMZN, F, JNJ, MRVL, MSFT. 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. | 2022-08-27T12:56:07Z | www.cnbc.com | Investing Club: Undecided? Here are 3 questions we ask ourselves before selling a troubled stock | https://www.cnbc.com/2022/08/25/investing-club-undecided-here-are-3-questions-we-ask-ourselves-before-selling-a-troubled-stock.html | https://www.cnbc.com/2022/08/25/investing-club-undecided-here-are-3-questions-we-ask-ourselves-before-selling-a-troubled-stock.html |
Marvell Technology (MRVL) reported a solid quarter Thursday after the closing bell, but a small hiccup in its supply chain caused the company to guide data center revenues down on a sequential basis for the current quarter, resulting in an outlook that was below the Street's expectations. On the bright side, management sees its supply chain pressures easing in the fourth quarter. When combined with a healthy demand outlook and new product ramps, the company sees fourth-quarter revenue growth accelerating from the third quarter, and full-year revenue growth tracking above management's initial plan. Revenue rose 41% to $1.517 billion for the second quarter of its fiscal 2023, roughly in line with estimates of $1.52 billion, according to Refinitiv. Adjusted earnings per share of $0.57 beat estimates of $0.56, according to Refinitiv. Adjusted gross margin of 65.0% and that was slightly below estimates of 65.2%. Bottom line Due to the weakness in consumer electronics right now (think PCs, smartphones, gaming) and the industry strength in cloud, 5G, and auto, we thought Marvell would be one of the best positioned semiconductor companies for the current environment. After all, the semiconductor company has strong exposure to data infrastructure end markets and, among its peers, the least exposure to consumer end markets. Although the demand outlook in Marvell's secular growing end markets remains healthy thanks to positive industry trends and company specific design wins and product ramps, it appears that the company hit a supply related speed bump for the third quarter, causing them to offer up guidance that was slightly below expectations. It's a disappointment to see for a company that has so effectively managed its supply chain through the worst of the chip shortage. But we do not want to be too negative because the company's overall demand (outside of consumer) continues to outpace supply. With those supply pressures expected to ease in the fourth quarter and hopefully through next year, and demand remaining strong, this lower-than-anticipated outlook is more of a short-term setback and not a long-term concern. The semis are a tricky and volatile group right now and each one is experiencing its own strengths and challenges. But what we come back to with Marvell is its product leadership in some of the most attractively growing end markets, as well as its operating leverage, which explains why the company continues to grow earnings faster than revenue growth. For these reasons, we are staying patient with Marvell. Shares are down about $2, or 3.61%, in after-hours trading Thursday after gaining $2.85, or 5.46%, in the session. Guidance Although the quarter was solid, management's outlook for the third quarter was below expectations. Marvell expects net revenue of $1.56 billion, plus or minus 3%. The consensus estimate is for revenue of $1.58 billion. Adjusted gross margins are expected to be 65%, plus or minus 0.25%, and that's a touch below estimates of 65.2%. And for adjusted earnings per share, Marvell is expecting $0.59, plus or minus $0.03. That's two pennies lower than the consensus estimate. By end market: Data center sales to decline mid-single digits on a percentage basis sequentially due to supply chain challenges. Driving this decline, management expects cloud customer sales to be flat sequentially due to some challenges in supply, and the on-premise market declining. The team does expect cloud sales to be up sequentially in the fourth quarter as new products ramp and supply challenges ease. On an annual basis, the team anticipates an increase of over 20% versus the year-ago period driven by cloud. Carrier infrastructure sales are also expected to decline mid-single digits on a percentage basis sequentially as wireless growth is driven by 5G deployments and is more than offset by a sequential decline in wired revenue. On an annual basis, growth is projected to be in the mid-20% range driven by the wireless end market. The strong demand from the enterprise networking end market is expected to continue throughout the third quarter. Management noted that they are seeing "pockets of supply opening up, which should enable [them] to begin catching up to demand." As a result, the team anticipates over 20% growth sequentially and roughly 70% growth on an annual basis. Automotive and industrial revenues are expected to increase in the mid-teens range sequentially on a percentage basis and sustain at an above 40% annual rate with Marvell's content per vehicle continuing to grow as vehicles become increasingly more connected. Consumer revenue is expected to be flat sequentially and decline roughly 10% on an annual basis due to weaker consumer HDD (old school, slower, "hard disk drives" with spinning platters) demand that is only partially offset by continued growth in consumer SSD (newer, faster "solid state drives" with no moving parts, making them more durable) demand. Despite the soft third-quarter guide, Marvell sees trends improving in the fourth quarter. Management said it projects its revenue growth to accelerate on a sequential basis in the fourth thanks to more supply and new product ramps. For the full fiscal year, management believes it is tracking towards revenue growth in the high 30% range, an improvement from the low 30% range management discussed last December. While this is great to hear, it appears that analysts are ahead of management. The consensus estimate for revenue growth this year is 38.6%, suggesting full-year numbers may need to come down by a very slight amount. Quarterly sales breakdown Data center sales were $643.4 million, up 48% year over year, and missed estimates of $657 million. Revenues were flat quarter over quarter and below management expectations of low single digit growth. On a sequential basis, Marvell saw continued growth from its cloud business, but that was offset by a decline in its on-premise business that was driven primarily from its fiber channel and Ethernet adapters. It's worth noting that Marvell has very limited revenue exposure with Chinese hyperscale data centers today. We call this out because Nvidia (NVDA) pointed out last night a slowdown in spending from these companies. Carrier infrastructure sales of $285.2 million, up 45%, beat estimates of $272 million. Marvell saw strong growth from both its wired and wireless end markets, the latter of which continues to benefit from growth in 5G adoption. Enterprise networking sales were $340.3 million, up 53% year over year, beating estimates of $325 million. The key driver of the upside to expectations here was improvements in supply. Marvell's enterprise networking business saw strong growth primarily due to the company's own unique product cycles. In addition, Marvell is seeing the dual benefit of share gains and an increase in content with its customers. Consumer sales of $164.4 million, down 1%, were about in line with estimates of $167 million. Results were below guidance as demand from the HDD =market weakened, though consumer SSD controllers grew both sequentially and year over year. Automotive/industrial sales were $83.6 million. That's up 46% year over year but analysts had higher hopes as expectations were for $94 million. Auto revenues grew sequentially, but this was more than offset by the industrial business, which ran into trouble due to supply. (Jim Cramer's Charitable Trust is long MRVL and NVDA. 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.
Matt Murphy, CEO, Marvell Technology | 2022-08-27T12:56:31Z | www.cnbc.com | Marvell's warning of a soft third quarter is just a hiccup | https://www.cnbc.com/2022/08/25/marvells-warning-of-a-soft-third-quarter-is-just-a-hiccup-.html | https://www.cnbc.com/2022/08/25/marvells-warning-of-a-soft-third-quarter-is-just-a-hiccup-.html |
Rocket attack kills 25 people on Ukraine's Independence Day
Finland, Norway and Sweden say they've seen increased and irresponsible Russian military activity near their borders
MIG-31k fighter jets, with Kinzhal missile systems, during Victory Day parades in Red Square in Moscow, Russia on June 24, 2020.
The defense ministers of Finland, Norway and Sweden said they have seen increased Russian military presence near their borders and agreed to boost cooperation in order to deter Moscow.
"At several occasions, we have seen irresponsible and unprofessional Russian behavior," Finland's Defense Minister Antti Kaikkonen, Norway's Defense Minister Bjorn Arild Gram and Sweden's Defense Minister Peter Hultqvist wrote in a statement.
The ministers added that they will enhance their joint military security by conducting training operations and increasing communication.
"The security situation has deteriorated following Russia's invasion of Ukraine. Russia has proved that it does not respect international law and has upended the European security order," the trio wrote in a joint statement.
Zelenskyy speaks to Biden and thanks him for latest military aid package
Ukrainian President Volodymyr Zelenskyy said he spoke to U.S. President Joe Biden a day after Ukraine celebrated its 31st Independence Day.
"We discussed Ukraine's further steps on our path to the victory over the aggressor and importance of holding Russia accountable for war crimes" Zelenskyy wrote on Twitter.
Zelenskyy also said that he thanked Biden for the additional U.S. security assistance that was announced on Wednesday.
WHO has delivered more than 1,300 metric tons of medical supplies to Ukraine since start of war
Doctors prepare a wounded Ukrainian soldier for surgery in a hospital, amid Russia's invasion, in Zaporizhzhia, Ukraine May 11, 2022.
Gleb Garanich | Reuters
The World Health Organization said it has delivered more than 1,300 metric tons of medical supplies to Ukraine since Russia's war began six months ago.
The supplies include power generators, ambulances, oxygen for medical facilities, supplies for trauma and emergency surgeries and medicine to help treat non-communicable diseases.
The WHO also said it has trained more than 9,000 health care workers in trauma surgery, mass casualties, chemical exposure, epidemiology and laboratory diagnostics.
The organization added that it has provided more than 12,000 psychosocial health consultations to those in need of mental health sessions triggered by war.
WHO Director-General Dr. Tedros Ghebreyesus reaffirmed the organization's commitment to supporting Ukraine's healthcare system.
Russian defense minister discusses Zaporizhzhia nuclear power plant with French counterpart
Russian Defense Minister Sergei Shoigu spoke with his French counterpart about the Zaporizhzhia nuclear power plant.
The Kremlin said that French Minister of the Armed Forces Sebastien Lecornu initiated the call.
"Shoigu delivered his assessments of the actions of the Armed Forces of Ukraine that can disrupt the safe operation of the plant," according to a Kremlin readout of the call.
Russian forces took control of the nuclear facility, Europe's largest, in the days following the Kremlin's full-scale invasion of Ukraine. In recent days, Ukraine and Russia have accused each other of shelling near the Zaporizhzhia plant. Western nations have called on Russia to remove its troops from the facility, citing concerns of a potential nuclear accident.
He told Lecornu that Moscow believed it was important for IAEA inspectors to visit the nuclear facility.
A French readout of the call was not immediately available.
IAEA chief says nuclear inspectors are 'very, very close' to being able to visit Zaporizhzhia plant
Any nuclear facility is potentially a ticking time bomb, says consultancy
The head of the International Atomic Energy Agency (IAEA), the UN's nuclear watchdog, said his team is "very, very close" to being able to visit the Zaporizhzhia nuclear power plant in southern Ukraine, which has been under Russian military occupation since March.
"We are very, very close to that," Rafael Grossi told French news channel France 24 in an interview, when asked if negotiations to access the facility had achieved anything.
Any operation to inspect the plant would be very complex, Grossi said, but he hoped the visit would be able to happen "within days."
International Atomic Energy Agency (IAEA) Director General Rafael Grossi attends a news conference, amid Russia's invasion of Ukraine, in Vienna, Austria, April 28, 2022.
Leonhard Foeger | Reuters
"We need to go there, we need to stabilize the situation, we need to ensure a presence of the IAEA soon," Grossi added.
International leaders and organizations have for months sounded the alarm over the risk of a nuclear catastrophe at the plant, which faces regular shelling and is Europe's largest of its kind.
Two last working reactors at Zaporizhzhia nuclear plant shut down due to fire
The Zaporizhzhia nuclear power plant's two remaining reactors that are still working shut down after nearby fires damaged power lines overhead, Ukraine's national nuclear energy firm Energoatom said.
The power lines connected the nuclear power plant in southern Ukraine — Europe's largest — to the national grid. Before the Russian invasion and Russian occupation of the facility, it supplied 20% of Ukraine's power. The fires that damaged the power lines started at a local coal plant in the vicinity, the company said via its official Telegram account.
The plant's security system is still working as usual and work is being done to re-link one of the reactors to the power grid, the statement added.
National security advisor Jake Sullivan meets with EU official in Washington to discuss Ukraine
Jake Sullivan, White House national security adviser, speaks during an interview at an Economic Club of Washington event in Washington, D.C., U.S., on Thursday, April 14, 2022.
National security advisor Jake Sullivan met with Frederic Bernard, the head of the Cabinet to the president of the European Council, in Washington.
"They reaffirmed their commitment to continue supporting Ukraine as it defends its democracy and imposing costs on Russia for its aggression," according to a White House readout of the meeting.
"They also discussed ongoing U.S. and European Union cooperation on Europe's energy security as well as the promotion of peace and stability in the Western Balkans and the South Caucasus," the readout added.
Ukrainian Foreign Minister Dmytro Kuleba posted photos of the aftermath of the strikes on his Twitter account, showing burnt-out train cars and structures reduced to rubble.
"Terrorist Russia keeps killing Ukrainian civilians. At least 15 killed in a Russian missile strike on a train station in Chaplyne, Dnipropetrovsk region," he wrote Wednesday evening.
Europe won't offer Ukraine on 'silver platter' to Putin: Former U.S. ambassador | 2022-08-27T12:57:14Z | www.cnbc.com | Russia-Ukraine war updates for August 25, 2022 | https://www.cnbc.com/2022/08/25/russia-ukraine-live-updates.html | https://www.cnbc.com/2022/08/25/russia-ukraine-live-updates.html |
As investors continue to ride out market volatility, some participants are increasingly turning to a growth at a reasonable price strategy — GARP — which offers investors the best of value and growth investing styles. At the same time, the S & P Mid Cap 400 index is down just 9.9% this year, outperforming the S & P 500, which is 12.6% lower over the same time period. Because of this, CNBC Pro screened the S & P Mid Cap 400 for stocks that meet the GARP criteria. We looked for companies that are expected to grow earnings per share by more than 8% this and next year and have a forward price-to-earnings ratio below 17.5. We then searched for names that have buy ratings from more than 50% of analyst covering them. These stocks also have upside of more than 20%, based on their consensus price targets. Here are the names that made the cut: Crocs met the criteria for this list. The footwear company is expected to grow earnings per share by 21.4% this year, and by 9% in 2023. It has a forward price-to-earnings ratio at 6.8. It cratered 43% this year, but is expected to have greater than 20% upside from here. Analysts expect Marriott Vacations Worldwide will grow earnings per share by 121% this year, the most of any company surfaced in this screen. The company is recommended by eight out of 10 analysts, and is expected to have more than 30% upside. ACI Worldwide is forecast to increase earnings per share by 25% this year, and by 18% in the next. The payments systems firm may be down more than 28% year to date, but 100% of analysts recommend it as a buying opportunity. It's expected to have more than 50% upside from here, according to consensus estimates. Other mid-cap stocks in this list include Performance Food Group , Webster Financial and Old National Bancorp . | 2022-08-27T12:57:33Z | www.cnbc.com | Signs point to strong earnings growth ahead for these undervalued midcap stocks | https://www.cnbc.com/2022/08/25/signs-point-to-strong-earnings-growth-ahead-for-these-undervalued-midcap-stocks.html | https://www.cnbc.com/2022/08/25/signs-point-to-strong-earnings-growth-ahead-for-these-undervalued-midcap-stocks.html |
An Airbus A321 is being assembled in the final assembly line hangar at the Airbus U.S. Manufacturing Facility in Mobile, Alabama.
The rent on a new Boeing 737 Max rose more than 20% between April 2020 and this July to $316,000 a month, estimates aviation advisory firm IBA Group. The competing Airbus A320neo climbed to $324,000 a month, up more than 14% from April 2020, and the highest price since before the Covid pandemic. The larger version, the A321neo, was going for $375,000 per month in July.
More than 51% of the world's nearly 23,000 single- and double-aisle jetliners are owned or managed by leasing firms, according to aviation consulting firm Cirium. While many airlines do own their aircraft, some carriers choose to rent planes instead, or combine the two.
Steven Udvar-Hazy, executive chairman of Los Angeles-based Air Lease, said that the company's lease extension rate is nearing a never-before-seen 90%, and that it usually runs about 65% to 75%.
"We're seeing a lot of lease extensions on planes that a year ago we projected that we would have to remarket," said Udvar-Hazy. That means the company doesn't have to worry about transition costs and it gives the lessor a steady stream of income.
Cronin said lease rates for Boeing Maxes and Airbus A320neos have risen by 10%-15% so far this year.
Supply chain problems and labor constraints have challenged manufacturers from increasing production. Part of the issue stems from sanctions on Russia that have crimped titanium supplies since that country's invasion of Ukraine in February.
Raytheon's CEO, Greg Hayes, last month acknowledged that some customers would feel the impact from supply shortages. "Now we're not talking about dozens and dozens of aircraft, but you're talking five to 10 airplanes ... that are going to be without engines because we don't have the titanium forgings that we had expected to get this year," Hayes said on an earnings call last month, referring to the conglomerate's Pratt & Whitney engine unit. | 2022-08-27T12:57:39Z | www.cnbc.com | Sky-high rents hit the aircraft market as Boeing jets top $300,000 a month | https://www.cnbc.com/2022/08/25/sky-high-rents-hit-the-aircraft-market-as-boeing-jets-top-300000-a-month.html | https://www.cnbc.com/2022/08/25/sky-high-rents-hit-the-aircraft-market-as-boeing-jets-top-300000-a-month.html |
Pedestrians walk past a Gap Inc. store in Shanghai, China.
Affirm — The buy-now-pay-later darling's shares slid nearly 14% after hours when it reported a bigger-than-expected quarterly loss of 65 cents per share, according to Refinitiv. It also issued weak revenue guidance for its fiscal first quarter and full year.
Workday — The cloud vendor's shares jumped almost 12% after it posted better-than-expected earnings and revenue for its most recent quarter, according to Refinitiv. The company also reaffirmed its full-year guidance, though it's not comparable to estimates due to subscription revenues. | 2022-08-27T12:58:04Z | www.cnbc.com | Stocks making biggest after-hours moves: Ulta, Affirm, Marvell and more | https://www.cnbc.com/2022/08/25/stocks-making-biggest-after-hour-moves-ulta-affirm-marvell-and-more.html | https://www.cnbc.com/2022/08/25/stocks-making-biggest-after-hour-moves-ulta-affirm-marvell-and-more.html |
U.S. Treasury yields fell on Thursday as traders sought clues out of the Federal Reserve's annual meet in Jackson Hole, Wyoming.
The yield on the benchmark 10-year Treasury note dropped nearly 8 basis points to 3.031% after rising on Wednesday. The 10-year yield climbed above the 3% level for the first time in a month earlier this week.
The yield on the 30-year Treasury bond fell about 8 basis points to 3.244%, while the yield on the short-term 2-year Treasury note dropped 1 basis point to 3.374%. Yields move inversely to prices, and a basis point is equal to 0.01%.
Jobless claims drifted lower in the week ending Aug. 20, according to the Labor Department on Thursday. A revision for second-quarter GDP showed a smaller decline. | 2022-08-27T12:58:59Z | www.cnbc.com | U.S. bonds: Treasury yields in focus ahead of Jackson Hole | https://www.cnbc.com/2022/08/25/us-bonds-treasury-yields-in-focus-ahead-of-jackson-hole.html | https://www.cnbc.com/2022/08/25/us-bonds-treasury-yields-in-focus-ahead-of-jackson-hole.html |
As earnings season winds down with most stocks still well off their record highs, many corporate executives are stepping in to buy their own shares. Wall Street pros often track insider buying and selling to get a sense of how corporate management feels about the economy and their individual companies. There are restrictions around buying stock right before earnings, so many executives will make their next moves just after a quarterly report. The list below shows stocks where CEOs or CFOs have made sizeable purchases over the past month, according to data from InsiderScore.com. The chart also shows the outlook for the stocks among Wall Street analysts, according to FactSet. Source: FactSet, InsiderScore.com/Verity One notable name on this is Match Group , which has a buy rating from 80% of the analysts covering the stock, according to FactSet. The stock has struggled in 2022, falling more than 50% year to date, but analysts still see upside of more than 36%. CEO Bernard Kim apparently shares their optimism, as he bought more than $1 million worth of shares on Aug. 4. There are some smaller companies on the list with similarly high approval ratings, albeit from a small number of analysts. For example, AbCellera Biologics has buy ratings from 100% of its analysts, according to FactSet. Civitas Resources and Univar Solutions enjoy buy ratings from 80% and 89% of analysts, respectively. HighPeak Energy also has a 100% approval rating, and its CEO Jack Hightower scooped up $10 million of stock on Aug. 22. Rocket Companies CEO Jay Farner has been particularly active recently, buying more than $3 million worth of shares in August alone in a series of purchases. Farner's buys appear to be part of pre-planned round of purchases, according to InsiderScore.com and securities filings, so it might not be a strong signal about his current outlook for the company. Under the plan, a broker may purchase up to $36 million of Rocket's stock by the end of this year on Farner's behalf. Wall Street has soured on Rocket, with less than 20% of analysts assigning buy ratings to the stock. Pinterest is in a similar position, with buy ratings from about 18% of analysts. However, CEO Bill Ready bought $5 million worth of shares on Aug. 3. | 2022-08-27T12:59:17Z | www.cnbc.com | What Wall Street analysts think of these stocks that CEOs are buying | https://www.cnbc.com/2022/08/25/what-wall-street-analysts-think-of-these-stocks-that-ceos-are-buying.html | https://www.cnbc.com/2022/08/25/what-wall-street-analysts-think-of-these-stocks-that-ceos-are-buying.html |
Federal Reserve Chairman Jerome Powell's tough talk in his address to the central bank's conference in Jackson Hole, Wyoming on Friday slammed stocks. However, the problem really started with the wishful thinking that led to Thursday's market rally. I so often wonder who could be so stupid to pay up for stocks on the day before a Fed chief speaks, especially when there's been no appreciable decline in inflation since his last 75-basis-point interest rate hike, the second in a row of that magnitude by the way. I always want to ask these buyers — like Sonny does to Michael in "The Godfather Part II" — "Did you go to college to get stupid?" We've been raising cash of the Investing Club portfolio because Powell has said in no uncertain terms, he will tighten monetary policy until prices stop going up more than 2%. If that means prices have to go down more than that, so be it. Now he made a statement not long ago, at his last press conference , that he didn't think that he would need to do more big ones because he didn't want to overshoot. We know there were members of the Fed who argued that position. But, in retrospect, it was a silly thing to say. I believe he is coming closer to reality when he says, as he did Friday to his colleagues and the investing world, that he would do whatever it takes to control inflation. The Fed makes huge trouble for itself all of the time. As someone who has been in the public eye for more years than I care to count, I know when you can talk and when you can't and when you shouldn't. This is a terrific time not to give interviews. It is a terrific time not to give press conferences. It is a terrific time to keep your mouth shut unless you are the Fed chairman. Now, I know you may say I feel that way because I want the stock market to go up. That's right in a sense. I want the stock market to have value down the road — and if we don't get inflation under control, the results will not matter. That game plan will get us to a very good result ultimately but not with so many cross signals. The buyers Thursday no doubt thought there could be some sort of surprise. Memo to them: You are the surprise. You are the ones who doubt Powell's resolve. You are the losers. You went to college to get stupid. (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.
Jerome Powell, chairman of the U.S. Federal Reserve, leaves the reception dinner at the Jackson Hole economic symposium in Moran, Wyoming, on Thursday, Aug. 25, 2022. | 2022-08-27T13:01:00Z | www.cnbc.com | Cramer: Blame wishful thinking for Friday's market swoon — not Fed chief Jerome Powell | https://www.cnbc.com/2022/08/26/cramer-blame-wishful-thinking-for-fridays-market-swoon-not-fed-chief-jerome-powell.html | https://www.cnbc.com/2022/08/26/cramer-blame-wishful-thinking-for-fridays-market-swoon-not-fed-chief-jerome-powell.html |
Oz and his wife, Lisa, hold stakes in oil and gas giants ConocoPhillips and Pioneer Natural Resources.
Mehmet Oz, US Republican Senate candidate for Pennsylvania, speaks during a campaign event in King of Prussia, Pennsylvania, US, on Thursday, June 9, 2022.
Oz and his wife, Lisa, have a financial stake in the industry he has championed, as they own shares of oil and gas giants ConocoPhillips and Pioneer Natural Resources, according to their financial disclosure report. The filing notes they own shares of ConocoPhillips valued between $15,001 and $50,000 and Pioneer stock valued between $1,001 and $15,000.
His nonprofit HealthCorps, which promotes itself as a group aiming to help teens with their health and wellness, has seen at least $210,000 in contributions from gas and oil producer Continental Resources since 2016, according to the group's annual financial reports. Continental's support has continued into Oz's Senate bid: The company's founder and chair, Harold Hamm, endorsed Oz for Senate in an April campaign video.
Hamm is among a group of over a dozen oil and gas industry leaders who have combined to contribute over $200,000 to Oz's campaign since he announced his run for Senate late last year, according to a CNBC review of Federal Election Commission filings. Others with ties to the oil and gas business who have donated at least $2,900 to Oz's campaign include Jimmy Haslam, an owner of the Cleveland Browns and chair of Pilot Company, a business that owns fueling stations across the country. His father and Pilot founder, James Haslam II, also donated to the Oz campaign.
Other top energy donors in recent months include Brad Cox, the chair of oil producer Cox Operating, and Janet Cafaro, the president of Silcor Oilfield Services, FEC records show.
Hamm told CNBC in a statement that he considers Oz a "friend." He said the two have known each other for almost a decade, with the goal of bringing HealthCorps' services into Oklahoma schools.
Hamm explained that he believes Oz will be a key advocate for the energy sector, which has enriched the oil billionaire. He and his family have a net worth of at least $21 billion, according to Forbes.
The nonprofit's annual reports from 2016 through 2020 give a range of how much donors contributed to HealthCorps. Continental Resources regularly ranked among the Oz group's top backers. The company is often listed as donating between $50,000 and $99,999 during those years. A HealthCorps filing says it received a range of $10,000 to just under $25,000 from Continental in 2018.
In its earlier filings before 2016, HealthCorps lists Continental as either a "national" or a "community" sponsor. The group's website notes that its national sponsors contribute $1 million and its community donors write checks for $250,000. The disclosures pre-2016 do not say or show a range of how much the company gave those years.
Before Oz ran for Senate, he repeatedly wrote columns that took aim at fracking, noting its potential threat to public health, Vice reports.
"And in Pennsylvania, there are multiple reports of air and water contamination, possibly from hydraulic fracturing sites, causing folks breathing problems, rashes, headaches, nosebleeds, numbness, nausea and vomiting," Oz said in a 2014 column critical of fracking.
Brittany Yanick, a spokeswoman for the Oz campaign, said the candidate has not changed his view on fracking and is a strong supporter of the drilling method. She also took aim at Fetterman's position on the issue.
Emilia Rowland, a spokeswoman for Fetterman's campaign, told CNBC that "John does not support a ban on fracking in Pennsylvania and that includes a moratorium on new fracking sites." She said he hasn't taken any campaign money from the fossil fuel industry.
Still, Oz appears more vocal than Fetterman in publicly supporting the oil and gas industry. In a recent op-ed, he said it's "gross, and deeply unpatriotic" for oil companies to charge high gas prices while their businesses are making massive profits. Fetterman namechecked Chevron, Exxon and Shell in the op-ed. | 2022-08-27T13:01:06Z | www.cnbc.com | Dr. Oz sides with energy industry after receiving oil, gas donations | https://www.cnbc.com/2022/08/26/dr-oz-sides-with-energy-after-he-received-donations-from-heads-of-oil-gas-business.html | https://www.cnbc.com/2022/08/26/dr-oz-sides-with-energy-after-he-received-donations-from-heads-of-oil-gas-business.html |
Federal Reserve Board Chairman Jerome Powell speaks to reporters after the Federal Reserve raised its target interest rate by three-quarters of a percentage point to stem a disruptive surge in inflation, during a news conference following a two-day meeting of the Federal Open Market Committee (FOMC) in Washington, U.S., June 15, 2022.
The PCE is the Federal Reserve's preferred measure of inflation. Fed officials are speaking in Jackson Hole, Wyoming, this week, as investors look for clues about the next steps the central bank's rate-hiking cycle. Fed Chair Jerome Powell said the central bank was committed to fighting inflation and wouldn't declare victory after a short slowdown. | 2022-08-27T13:01:24Z | www.cnbc.com | Fed's preferred inflation measure shows price pressures eased in July | https://www.cnbc.com/2022/08/26/feds-preferred-inflation-measure-shows-price-pressures-eased-in-july.html | https://www.cnbc.com/2022/08/26/feds-preferred-inflation-measure-shows-price-pressures-eased-in-july.html |
Many investors have put their concerns about inflation on the back burner, thanks to a strong stock market rally in the second half. But those concerns are resurfacing, with a pullback in stocks this week and U.S. Federal Reserve Chair Jerome Powell's speech at Jackson Hole. Easing inflationary pressures in July had raised hopes that inflation had peaked, but fund manager Jordan Cvetanovski thinks "it's here to stay." "The market is banking on core inflation coming down fairly quickly. We believe inflation will stay higher for longer and rates will be higher than expected. Even if energy and supply challenges ease, inflation won't be easily tamed," Cvetanovski, founder and chief investment officer at Pella Funds Management, told CNBC "Street Signs Asia" on Tuesday. So where is he putting his money? U.S. discount retailer Dollar General is one of his top picks. "We think that in general, discount retailers across the globe will benefit from this trend in the U.S. In particular, Dollar General is one of those companies that has actually done well in past crises. In fact, it had very strong sales growth during both the [Great Financial Crisis] and the lockdown years of the Covid-19 pandemic," Cvetanovski said. He expects Dollar General will able to pass on any prices increases to consumers, while benefiting from consumers trading down from "more expensive retail purchases to better bargains elsewhere." The company sells "everything staples," which are less price sensitive for consumers compared to discretionary items, he added. Cvetanovski also likes sports fashion retailer JD Sports , a company he described as a "well managed business that is able to grow in a weak environment." "If you look this company, historically, it has grown like-for-like for 10% over the last 10 odd years, and even in this environment, it's managing to grow like-for-like 5% per annum, which is a very good outcome. Putting valuation aside for a second. we think that's great execution," he said. The company's main customer base — 16- to 25-year-olds with a side gig — is also "still quite a resilient part" of the consumer market, he added. Cvetanovski said JD Sports could grow significantly by adding new stores and could take advantage of weakened competitors in the U.S. and Europe to engage in mergers and acquisitions. The stock also looks attractive from a valuation perspective, he added. "It has gone to the cleaners and is priced for a disaster. We think [the stock] is far from it." What's next for retailers Retailers are increasingly facing margin pressures, thanks to higher labor and input costs as well as shrinking consumer spending power. How, then, should investors position themselves for these conditions? "We think one should stick to companies that are executing really well, are well managed, have strong balance sheets and have shown to do well during a crisis and they take advantage of that," Cvetanovski said. "To cut a long story short, some retailers will do very poorly, while others will take advantage of this to do well relative to their competitors. So, it really will require some specific stock picking, if you like, and bottom-up understanding of the company we're investing in," he added.
Patti Domman hour ago | 2022-08-27T13:01:36Z | www.cnbc.com | Fund manager: 2 stocks to navigate 'higher for longer' Inflation | https://www.cnbc.com/2022/08/26/fund-manager-2-stocks-to-navigate-higher-for-longer-inflation.html | https://www.cnbc.com/2022/08/26/fund-manager-2-stocks-to-navigate-higher-for-longer-inflation.html |
Hedge funds are embracing the stability of Warren Buffett's Berkshire Hathaway during a volatile market as the Omaha-based conglomerate became one of their favorite stocks last quarter, according to Goldman Sachs. The Wall Street firm analyzed the holdings of 795 hedge funds with $2.4 trillion of gross equity positions at the start of the third quarter based on regulatory filings. It then compiled a basket of the most popular long positions, dubbed Goldman's "Hedge Fund VIP basket," consisting of 50 stocks that most frequently appear among the largest 10 holdings of hedge funds. A total of 22 hedge funds held Berkshire's class B shares among their top 10 stakes at the end of the second quarter, which makes Buffett's firm one of the most popular stocks among the community, Goldman said. The conglomerate saw the second-largest increase in the number of hedge fund owners last quarter, only behind internet stock Switch , the Wall Street firm said. Many mega-cap tech stocks remained hedge funds' most loved holdings at the end of June, including, Microsoft, Amazon , Alphabet , Meta and Apple. Berkshire was one of the only nontech names on the list of hedge funds' most popular stocks. The conglomerate's operating business is a patchwork of companies focused on the traditional backbone of the economy, from railroads, to batteries, insurance, home furnishing and retail. Many view Berkshire's stock as a cyclical bet and defensive play. Berkshire's Class A shares are among the market's most expensive stocks, priced above $440,000 apiece. Buffett's conglomerate issued convertible Class B shares in 1996 for one thirtieth of Class A share price initially, in response to demand for a cheaper option among small investors. Shares of Berkshire Class B stock have risen about 3% this year, outperforming the broader market. | 2022-08-27T13:01:54Z | www.cnbc.com | Hedge funds have a new favorite stock, and it's Warren Buffett's Berkshire Hathaway | https://www.cnbc.com/2022/08/26/hedge-funds-have-a-new-favorite-stock-and-its-warren-buffetts-berkshire-hathaway.html | https://www.cnbc.com/2022/08/26/hedge-funds-have-a-new-favorite-stock-and-its-warren-buffetts-berkshire-hathaway.html |
Markets could remain volatile in the week ahead, as August winds down and investors turn their attention to next Friday's jobs report. The August employment report is expected to show strong job growth, and it will most certainly be a major factor in the Federal Reserve's decision on how much to raise interest rates at its Sept. 20 and 21 meeting. According to Dow Jones, economists expect 325,000 jobs were added, down from the surprisingly strong 528,000 in July. Stocks were rocked Friday by comments from Fed Chairman Jerome Powell , who said the Fed plans to keep higher rates in place to fight inflation. The markets had expected a Fed 'pivot,' where it could slow down hikes, then eventually reverse course and cut rates in the latter part of next year. The S & P 500 fell 3.4% for a weekly loss of 4%, and the tech heavy Nasdaq was hit even harder, down 3.9% Friday and 4.4% for the week. Tech was the worst-performing major sector, down 5.6% for the week, and communications services was second worst, 4.8%.off "I think with the next week and the data that's coming in, and then a three-day weekend, I think to say you're expecting there will be volatility is a relatively easy call, and by definition, that means both directions," said Liz Ann Sonders, chief market strategist at Charles Schwab. Sonders said in addition to the Fed's hawkish rate stance, stocks will have to adjust to increasingly lower expectations for earnings. Besides jobs data, there are ISM manufacturing data and vehicle sales Thursday. On Tuesday, there is S & P/Case-Shiller home price data, consumer confidence and job openings reports. There are also a few earnings, including Best Buy and Chewy Tuesday, Express on Wednesday and Campbell Soup Thursday. Jobs, jobs, jobs But it's the jobs report that will matter most to markets. Michael Gapen, chief U.S. economist at Bank of America, said the employment data and the consumer price index Sept. 13 are the most important data points the Fed will consider as it decides how much to raise interest rates Sept. 21. The market has been debating whether the Fed will raise by 0.50 of a percentage point or 0.75, as it did in June and July. Powell did not help clarify what the Fed will do, but he did say it depends on the data. "He made it clear 0.75 is on the table, but I think we already knew that," said Gapen of Powell. "The report next Friday is going to tell us whether they're doing 50 or 75." Gapen said if the employment report comes in as expected, "it's going to be a coin flip between 50 and 75. The Fed doesn't like to surprise us on rate hikes. They'll let us know," he said. Powell pointed to the labor market in his comments, noting that reducing inflation is likely to create a sustained period of below-trend growth. "Moreover, there will very likely be some softening of labor market conditions. While higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses," Powell said. Treasury yields were higher in the past week as the market adjusted to a more hawkish Fed even before Powell spoke. The 10-year yield was at 3.02% Friday after reaching 3.12% on Thursday. The 2-year yield rose to 3.38%. "The move up in the [stock] market corresponded with the move down in the 10-year yield," Sonders said. She said that trade began to reverse as yields rose, and Powell's hawkish commentary confirmed that move. "I don't think we're out of the woods just yet," she said. Sonders said the rally into August was healthier from a breadth perspective, before the S & P 500 turned lower after hitting resistance last week at 4,325, right at its 200-day moving average. The 200-day is literally the average closing price of the last 200 sessions, and it would have been a positive momentum signal if the index had closed above it. "You had a sort of technical failure and sentiment, like in the meme stocks, had gotten quite frothy," she said. "That in and of itself helped to bring on a corrective phase." Technically speaking Scott Redler, partner with T3Live.com, said the next challenge for the S & P 500 could be around its 50-day moving average, at 3,996. The S & P closed Friday at 4,057. "The next target that will be in play next week is the 50-day. Now we're in a no man's land. Nobody is in a rush to buy here. We pulled in from 4,325. The market tried to bounce ahead of Jackson Hole," he said. If the S & P falls below the 50-day and holds there, it would be seen as a sign of more losses for the index. Stocks are also about to enter their historically worst month of the year Thursday, as the calendar rolls into September. According to CFRA, the month of September is only positive 44% of the time, and the average performance for the S & P 500 in the month since 1944 was a decline of 0.6%. September is one of two months with a negative average performance. The other is February, which has an average decline of 0.2%. Sam Stovall, chief investment strategist at CFRA, said he studied the performance of the S & P in September in years with the worst six months start to the year. "Fifty percent of the time they declined, and the average decline was 2.1%," he said. Stovall said September has a chance of doing better this year. "Since so many people are expecting a bad September, I wonder if it ends up being ho hum or even positive, only because of expectations," he said. "There's so many reasons why the market does poorly. Maybe it does poorly leading up to the FOMC meeting and starts to take off after that." Once the third quarter ends Sept. 30, the fourth quarter is expected to be positive. That is, in part, because the fourth quarter in a midterm election year is the best performing of all quarters in the presidential cycle, he noted. Week ahead calendar Monday 2:15 p.m. Fed Vice Chair Lael Brainard speaks Tuesday Earning s: Best Buy , Baidu, Bank of Montreal, Hewlett Packard Enterprises, Ambarella, ChargePoint, Chewy , PVH 8:00 a.m. Richmond Fed President Tom Barkin speaks 9:00 a.m. S & P/Case-Shiller home prices 9:00 a.m. FHFA home prices 10:00 a.m. Consumer confidence 10:00 a.m. JOLTS 11:00 a.m. New York Fed President John Williams speaks Wednesday Earnings: Brown-Forman, Designer Brands, Express , Vera Bradley, Five Below, Nutanix, Pure Storage, MongoDB, Okta, Cooper Cos, C3.ai 8:00 a.m. Cleveland Fed President Loretta Mester speaks 8:15 a.m. ADP 9:45 a.m. Chicago PMI 6:00 p.m. Dallas Fed President Lorie Logan speaks 6:30 p.m. Atlanta Fed President Raphael Bostic speaks Thursday Earnings: Hovnanian , Hormel Foods, Campbell Soup, Lands' End, Ciena, Signet Jewelers, Broadcom, Pager Duty, Weibo, Ollie's Bargain Outlet Monthly vehicle sales 8:30 a.m. Initial claims 8:30 a.m. Productivity and costs 9:45 a.m. Manufacturing PMI 10:00 a.m. ISM manufacturing 10:00 a.m. Construction spending 3:30 p.m. Atlanta Fed's Bostic speaks Friday 8:30 a.m. Employment report for August 10:00 a.m. Factory orders | 2022-08-27T13:03:56Z | www.cnbc.com | Stocks face more volatile week, after hawkish Fed puts focus on jobs | https://www.cnbc.com/2022/08/26/stocks-face-more-volatile-week-after-hawkish-fed-puts-focus-on-jobs.html | https://www.cnbc.com/2022/08/26/stocks-face-more-volatile-week-after-hawkish-fed-puts-focus-on-jobs.html |
Treasury yields were higher Friday after Federal Reserve Chair Jerome Powell delivered a speech on the central bank's tightening path.
"While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses," Powell said in prepared remarks at the annual Jackson Hole, Wyoming symposium. "These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain."
Wells Fargo's Michael Schumacher said, "I think people are just reassessing. It was fine. It was hawkish enough, but it wasn't over the top. There was expectation for a very hawkish speech so it's hard to measure up to that."
Powell's remarks come after the Bureau of Economic Analysis reported Friday that the personal consumption expenditures price index — the Fed's preferred inflation gauge — rose 6.3% last month on a year-over-year basis. That's down from a gain of 6.8% in June. | 2022-08-27T13:04:39Z | www.cnbc.com | U.S. bonds: U.S. Treasury yields are higher after Powell speech | https://www.cnbc.com/2022/08/26/us-bonds-treasury-yields-move-higher-ahead-of-powell-speech-.html | https://www.cnbc.com/2022/08/26/us-bonds-treasury-yields-move-higher-ahead-of-powell-speech-.html |
Though Covid-19 transmission rates, hospitalizations and deaths are trending downward in the U.S., there are some states that may be safer to live in than others because of factors like how well they have kept the pandemic under control.
No. 1 safest state during Covid-19: Vermont
States in the northeast reigned supreme with five in the top six. But a few west coast states landed high on the list as well.
Having the highest vaccination rate in the country strongly encouraged the state's score. Some 67% of its total population have at least one dose of the Covid vaccine, and 60% of North Carolina residents ages five and up have at least one booster shot, as indicated by the state's Department of Health and Human Services.
In third place, Rhode Island wasn't far off, scoring a 74.07. A high vaccination rate coupled with landing in the top 10 for lowest death rates upped the state's score, and it also has one of the lowest positive Covid-19 testing rates.
3 tips to improve your spending if you are bad with money | 2022-08-27T13:04:45Z | www.cnbc.com | WalletHub Study: Safest states during Covid-19 | https://www.cnbc.com/2022/08/26/wallethub-study-safest-states-during-covid-19.html | https://www.cnbc.com/2022/08/26/wallethub-study-safest-states-during-covid-19.html |
Student loan debt forgiveness is approved, up to $20,000 per borrower — here's who qualifies
The Biden administration is forgiving up to $20,000 per borrower in student loan debt.
Trina Paul@thetrinapaul
Young student studying in classroom. Female is looking at computer screen in university. She is in casuals.
Those with student loans are breathing a huge sigh of relief today as the Biden administration announced that it will cancel up to $20,000 worth of federal student loan debt per borrower. The federal loan repayment pause will also be extended until Dec. 31, 2022 and those on income based repayment plans will have lower monthly payments.
Here's what you need to know about the Biden administration's latest move, and how it affects you.
President Biden announces student loan forgiveness and extended forbearance
President Biden announced today that borrowers will have up to $20,000 worth of student loans forgiven, along with one final extension on student loan forbearance through the end of the year.
This move will alleviate all student loan debt for roughly 20 million borrowers, according to the White House. Of the roughly 45 million total federal student loan borrowers, 43 million would be eligible for some type of forgiveness. The decision comes after both the Trump and Biden administrations extended the federal student loan payment pause multiple times since it was instituted in March 2020.
As long as you're under the yearly income thresholds, which are $125,000 for individuals and $250,000 for families, you will qualify for the following student loan forgiveness:
Up to $20,000 of debt cancellation for Pell grant recipients
Up to $10,000 for most other non-Pell borrowers
The payment pause for federal loans will continue until Dec. 31, with repayment starting Jan. 1, 2023. According to the White House, this will be the last extension of the payment pause.
On top of this, the Department of Education is beginning to develop a new income-driven repayment plan system for undergraduate loans. For those who qualify for income-driven repayment, your monthly payments will be capped at 5% of your monthly income — reduced from 10%.
However, it's likely that some of today's actions will be challenged in court by Republicans as the party has staunchly been against many forms of forgiveness.
For more details on student loan forgiveness, the payment pause and the new income driven repayment plans visit the Student Aid website.
How to qualify for loan forgiveness
For millions of borrowers, this news comes as a sigh of relief. But there is one important step to ensure you get the forgiveness you qualify for.
Be sure to certify your income. Though some borrowers already have their income data on file with the Department of Education, millions of borrowers have not certified their yearly income. If you haven't done so, there will be an application in the coming weeks from the Department made available. To get alerted when the application is live, sign up here.
It's unclear when borrowers will see their loan balances reflect the applicable forgiveness. Additionally, this student loan forgiveness is not considered taxable income due to the American Rescue Plan.
If you're unsure whether or not you had Pell Grants (which qualify borrowers for up to $20,000 in loan forgiveness), you can log in to your Federal Student Aid account and click "view details" under the "Grants" section to see if any of your grants are Pell Grants. Pell Grants are typically awarded to low-income undergraduate students who have demonstrated a serious financial need.
Note that this announcement doesn't affect anyone with private student loans. If you currently have private student loans, consider refinancing them for a lower interest rate and better terms with a lender like SoFi or Laurel Road.
What does student loan forgiveness mean for taxpayers?
Forgiving $10,000 per borrower could cost the federal government around $330 billion, a recent estimate from the University of Pennsylvania's Wharton Budget Model. Mark Kantrowitz, higher education expert and author of 'How to Appeal for More College Financial Aid', estimates an even higher cost — more than $350 billion when including $20,000 forgiveness for Pell Grant recipients. This leaves the estimated cost per taxpayer at $2,000, according to the National Taxpayers Union Foundation.
Advocates of student loan forgiveness have argued that this is an important process to help close the racial wealth gap. On average, Black college graduates owe $23,400 versus the $16,000 owed by their white peers, according to Brookings, a progressive think tank. An analysis conducted by the Roosevelt Institute, a left-leaning think tank, found that forgiving $50,000 worth of student loan debt would increase Black household wealth by 40%.
Detractors of student loan forgiveness assert that benefits would accrue primarily for high-income earners and that it doesn't address the core issue: college affordability. Those against student loan forgiveness also believe it would create a moral hazard issue where borrowers would take out more in loans with the hope that the federal government would forgive debt in the future.
Additionally, critics of the move say that student loan forgiveness only helps those in financially secure positions. The Committee for a Responsible Federal Budget, a nonpartisan and nonprofit organization, found that forgiving $10,000 would deliver 71 percent of the benefit to the top half of the income distribution.
And with record-high inflation squeezing the wallets of Americans, there are fears that forgiveness could make matters worse.
This is the first time that the federal government has ever implemented student loan forgiveness. So if your student loan debt has been completely wiped out, Lauren Anastasio, director of financial advice and certified financial planner at investing-app Stash recommends reevaluating your financial goals.
"This can help offset the impact of inflation on your budget, help you pay off the debt sooner than you would have otherwise, or simply give you a little extra money to put towards other goals each month," she says.
So whether it's bolstering your emergency fund, beginning to invest for retirement or simply paying down other debt, this announcement can help you get closer to accomplishing your financial goals. | 2022-08-27T13:05:29Z | www.cnbc.com | Biden to Erase Up To $20K in Student Loan Debt — Here's Who Qualifies | https://www.cnbc.com/select/biden-to-erase-up-to-20k-in-student-loan-debt-heres-who-qualifies/ | https://www.cnbc.com/select/biden-to-erase-up-to-20k-in-student-loan-debt-heres-who-qualifies/ |
Are you still a few years away from buying a home? Here's why you shouldn't wait to talk to a lender
Mortgage executive Nicole Rueth weighs in on the benefits of reaching out to lenders early.
Jasmin Suknanan
Witthaya Prasongsin | Moment | Getty Images
Most people begin their homebuying journey once they've saved up enough money for a down payment. The rest of the process typically entails speaking to a lender, getting pre-approved for a home loan, working with a real estate agent to find a place that's right for you, making an offer, conducting inspections and eventually closing on the property.
According to Nicole Rueth, senior vice president at the Fairway Independent Mortgage Corporation, potential homebuyers should start speaking to lenders long before they're ready to buy a home instead of waiting until they have enough money to make a down payment.
"The moment you think about buying a home is when you should be talking to a lender," Rueth says. "You don't have to already be in the process of buying a home to do this. You can be two years away from buying a home and still start that conversation."
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By having that conversation early on — even if you're still a few years away from buying a home — you'll be able to get your lender's input on what you'll need to do over the next few years to afford the kind of house you want to buy.
"Maybe you find that you'll need to get a higher paying job to afford the house, or maybe you're told you need to work on paying down more of your debts or fight off a negative trade line on your credit report," Rueth explains. "This will be the homework you have to work on after your meeting with a lender."
Working with a lender ahead of time can also provide a clearer picture as to what else you'll need to budget for — after all, a down payment is just one of several upfront costs you'll need to be prepared to pay when you're finally ready to buy a home. For instance, you'll need to account for lender fees — charges associated with processing, approving and funding your loan, which can wind up being 1% to 2% of your loan amount — as well as additional fees for appraisal, inspection and title insurance.
How to find a mortgage lender
Rueth recommends starting with the people and institutions you trust when trying to find a lender.
"I would check in with the people you trust. Don't just ask your friends who they got their mortgage from, ask your financially savvy friends who they went with," Rueth says. "You want to take advice from the right people."
Another good place to get the homeowner conversation started is your favorite local bank. Rueth suggests working with a lender that already provides resources to instruct and inform potential borrowers about the homebuying process, which shows they believe in spending the time to educate others.
A quick search on a mortgage lender's website can help you learn what kinds of educational resources are offered. Chase Bank has a great podcast series called "Beginner to Buyer" that's aimed at helping customers familiarize themselves with the homebuying process, while PNC Bank has an online first-time homebuyer's guide, which includes access to an online affordability calculator.
You can also do research on your own with the help of websites that cover mortgage lenders. Select has rounded up and ranked the best mortgage providers for a number of situations, including the best mortgages for those who want to make a small down payment to the best mortgages for those with a low credit score.
"A good lender will spend the time with you even if you're not ready to buy a home today," Rueth explains. "The conversation today will better position you down the line to reach that goal of homeownership."
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Even if you're a couple of years away from being ready to buy a home, it can still be beneficial to sit down with a lender and talk things out. The conversation can help you figure out what the next 12 to 24 months should look like in terms of getting financially ready to buy a place.
"Anyone who doesn't think they can purchase a home right now needs to figure out the path to ownership," Rueth says. "It's never a 'no,' but it may just be a 'not right now.'" In other words, early conversations with a lender can help you close the gap between "not right now" and owning a home.
5 of the best mortgage lenders to consider if you're buying a home in August 2022
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Home sellers are lowering prices, but watch for these 2 signs to fall in your favor before you buy | 2022-08-27T13:05:42Z | www.cnbc.com | Reasons to Speak to a Mortgage Lender Sooner Rather Than Later | https://www.cnbc.com/select/reasons-to-speak-to-mortgage-lender-sooner-than-later/ | https://www.cnbc.com/select/reasons-to-speak-to-mortgage-lender-sooner-than-later/ |
The TRUTH Social website is seen on a mobile device with an image of former US president Donald Trump in the background in this photo illustration in Warsaw, Poland on 23 February, 2022.
Shares of DWAC closed down nearly 8% at $25.32, off 16% this month and significantly below their 2022 peak of about $97. | 2022-08-29T23:56:28Z | www.cnbc.com | Trump SPAC Digital World stock falls as shareholders consider merger delay | https://www.cnbc.com/2022/08/29/trump-spac-digital-world-stock-falls-as-shareholders-consider-merger-delay.html | https://www.cnbc.com/2022/08/29/trump-spac-digital-world-stock-falls-as-shareholders-consider-merger-delay.html |
In this illustration, Elon Musk's Twitter account is displayed on the screen of a mobile phone with the Twitter logo in the background. A whistleblower's complaint that Twitter misled federal regulators about the company's security risks could provide Elon Musk with fresh ammunition in his bid to get out of buying the company for $44 billion.
Elon Musk's legal team filed another notice on Tuesday to terminate his $44 billion deal to buy Twitter, citing additional reasons.
On July 8, Musk's legal team initially filed a notice to the U.S. Securities and Exchange Commission (SEC) to terminate the Twitter acquisition. Musk's legal team alleged that "Twitter has not complied with its contractual obligations."
Ringler said in the letter that the latest termination notice is "not legally necessary " to end the merger deal, but is being delivered in case the July 8 filing is "determined to be invalid for any reason."
The letter on behalf of Musk said the Zatko complaint "alleges far-reaching misconduct at Twitter—all of which was disclosed to Twitter's directors and senior executives, including (CEO) Parag Agrawal—that is likely to have severe consequences for Twitter's business."
Musk's lawyer said Zatko alleges that Twitter is in "material noncompliance" with its obligations under its 2011 agreement with the Federal Trade Commission. The letter laid out some of Zatko's other allegations including claims that Twitter is "uniquely vulnerable to systemic disruption resulting from data center failures or malicious actors," something senior management knew about but "ignored and sought to obfuscate."
"These allegations, if true, demonstrate that Twitter has breached the following provisions of the Merger Agreement, thereby giving the Musk Parties the right to terminate the Merger Agreement pursuant to its terms as more fully described below," the letter said.
Twitter and Musk will go on trial on Oct. 17 in Delaware to resolve Musk's attempt to cancel his acquisition of the company unless they reach a settlement first.
Since proposing the Twitter takeover, Musk has complained that the number of fake or spam accounts on the social media platform is higher than is being disclosed. In the July 8 letter, Musk's legal team claimed the company had "failed or refused to provide" information on these accounts to the Tesla CEO.
Ahead of the October trial, Musk's legal team has subpoenaed the whistleblower Zatko, seeking information on the company's spam accounts and its alleged security vulnerabilities.
- CNBC's Lora Kolodny contributed to this report. | 2022-08-30T12:00:00Z | www.cnbc.com | Elon Musk cites whistleblower claims in latest effort to scrap Twitter deal | https://www.cnbc.com/2022/08/30/elon-musk-files-another-notice-to-terminate-twitter-acquisition-citing-additional-undisclosed-reasons.html | https://www.cnbc.com/2022/08/30/elon-musk-files-another-notice-to-terminate-twitter-acquisition-citing-additional-undisclosed-reasons.html |
Texas health officials said Tuesday that a person diagnosed with monkeypox died in what may be the nation's first-known fatality from the virus.
Eight countries have reported 15 deaths from monkeypox since the global outbreak began, according to the Centers for Disease Control and Prevention. Deaths were previously reported in Cuba, Brazil, Ecuador, Ghana, India, Nigeria, Spain and the Central African Republic.
The U.S. is battling the largest monkeypox outbreak in the world right now. More than 18,000 cases have been across the country, with infections now confirmed in every state as well as Puerto Rico and Washington, D.C., according to CDC data.
Nearly 49,000 cases of monkeypox have been reported across 99 countries, according to the data. | 2022-08-30T16:47:19Z | www.cnbc.com | Texas reports what may be the first U.S. death from monkeypox | https://www.cnbc.com/2022/08/30/texas-reports-what-may-be-the-first-us-death-from-monkeypox.html | https://www.cnbc.com/2022/08/30/texas-reports-what-may-be-the-first-us-death-from-monkeypox.html |
Goldman Sachs will lift all its Covid-19 requirements in most offices beginning Sept. 6 in an effort to incentivize its employees to return to the office more than two years into the pandemic.
According to a memo sent Tuesday and obtained by CNBC, the bank will no longer require its workers to be vaccinated to enter its offices or to test and wear face coverings. The policy applies to most offices with the exception of those in Lima and New York City.
The news from Goldman Sachs comes as companies across the world grapple with how to balance Covid-19 restrictions and the desire to bring workers back in person more than two years after lockdowns began.
It should be noted that the memo didn't specifically require workers to come into the office. Instead, it encouraged employees who have not come into the office to speak with their managers to make sure they are conforming to "current return to office expectations."
The bank also said it will continue contact tracing efforts but expects to end its program of distributing free antigen test kits at its offices by the end of 2022, according to the memo. | 2022-08-30T21:21:59Z | www.cnbc.com | Goldman Sachs to lift vaccination, Covid-19 requirements in most offices next month | https://www.cnbc.com/2022/08/30/goldman-sachs-to-lift-vaccination-covid-19-requirements-in-most-offices-next-month.html | https://www.cnbc.com/2022/08/30/goldman-sachs-to-lift-vaccination-covid-19-requirements-in-most-offices-next-month.html |
Donald Trump's social media app "Truth Social" in Apple's App Store on an iPhone 12.
Google said the app lacks effective systems for moderating user-generated content, which violates the store's terms of service.
"On Aug. 19, we notified Truth Social of several violations of standard policies in their current app submission and reiterated that having effective systems for moderating user-generated content is a condition of our terms of service for any app to go live on Google Play," the tech company, which is owned by Alphabet, told CNBC in a statement Tuesday.
Axios first reported the Google statement.
Google said that Nunes' statements misrepresent the ongoing dialogue between Trump Media and the Play store. Google reiterated that Truth Social's violations, and the steps to redress them, have been clearly communicated with the company.
Trump Media pushed back, saying Truth Social was creating a "vibrant, family-friendly environment."
"TMTG has no desire to litigate its business matters in the public sphere, but for the record, has promptly responded to all inquiries from Google," the company said in a press release Tuesday. "It is our belief that all Americans should have access to Truth Social no matter what devices they use. We look forward to Google approving Truth Social at their earliest convenience."
Trump Media and Technology Group made the app available for preorder on Android in early August. It is available on Apple's App Store. Google's YouTube has suspended Trump's channel. Android users can still access Truth Social through the platform's website.
DWAC scheduled a shareholder meeting for Sept. 6, two days before the current merger deadline. Shares of the company were down more than 2% Tuesday at $24.65, far from their peak of about $97 in March. | 2022-08-31T00:22:52Z | www.cnbc.com | Trump's Truth Social barred from Google Play store over content moderation concerns | https://www.cnbc.com/2022/08/30/trump-truth-social-barred-from-google-play-store-content-moderation-concerns.html | https://www.cnbc.com/2022/08/30/trump-truth-social-barred-from-google-play-store-content-moderation-concerns.html |
Published Tue, Aug 30 202211:35 PM EDT Updated 1 Min Ago
An FBI raid seized more than 100 classified documents from the Florida home of ex-President Donald Trump, the Department of Justice said in a court filing.
The DOJ opposed Trump's request that a judge appoint a special master to review documents taken from his Mar-a-Lago residence.
Prosecutors said there is evidence that government records were likely concealed at Trump's home in an effort to "obstruct the government's investigation."
Former U.S. President Donald Trump's Mar-a-Lago resort is seen in Palm Beach, Florida, February 8, 2021.
The Department of Justice late Tuesday revealed that the FBI seized more than 100 classified documents from former President Donald Trump's Florida home earlier this month as the department urged a judge to reject Trump's request to have those and other records reviewed by a special master.
The Justice Department argued in a court filing that Trump lacks the legal standing to appoint a special master. Appointing that watchdog could harm national security, the agency warned.
The department also said it has evidence that government records likely were concealed and removed from a storage room at Trump's home at his Mar-a-Lago club in Palm Beach, "and that efforts were likely taken to obstruct the government's investigation."
Trump had sued to block the Justice Department from further investigating any materials taken in the raid until a court-appointed special master is able to analyze them. That step is typically taken when there is a chance that some evidence should be withheld from prosecutors because of various legal privileges.
"As an initial matter, the former President lacks standing to seek judicial relief or oversight as to Presidential records because those records do not belong to him," the DOJ wrote to Judge Aileen Cannon in U.S. District Court in southern Florida.
Cannon, who was appointed by Trump, has set a hearing for Thursday at 1 p.m. ET in a West Palm Beach courthouse. Trump's legal team has until Wednesday night to reply to the DOJ's latest filing.
In their filing Tuesday, the prosecutors wrote that not only is appointing a special master "unnecessary," but doing so "would significantly harm important governmental interests, including national security interests."
The response came one day after the DOJ revealed told Cannon that its review of the seized materials was complete.
The DOJ told the court on Monday that a law enforcement team had identified a "limited set" of materials that may be protected by attorney-client privilege. That privilege often refers to the legal doctrine that protects the confidentiality of communications between an attorney and their client.
The National Archives and Records Administration retrieved 15 boxes of records from Mar-a-Lago in January. The next month, NARA sent a referral to the DOJ that the records contained "highly classified documents intermingled with other records," according to the affidavit used to obtain the warrant for the Aug. 8 search of Trump's home.
The DOJ said in Tuesday night's filing that the FBI had "uncovered multiple sources of evidence indicating ... that classified documents remained" at Mar-a-Lago.
"The government also developed evidence that government records were likely concealed and removed from the Storage Room and that efforts were likely taken to obstruct the government's investigation," the DOJ wrote.
That evidence contradicted a June 3 letter from the custodian of Trump's records, certifying that "any and all" documents responsive to a grand jury subpoena had been handed over, the DOJ wrote.
The August search "cast serious doubt on the claim in the certification ... that there had been 'a diligent search' for records responsive to the grand jury subpoena," according to the DOJ's filing.
Of the evidence taken in that raid, "over one hundred unique documents with classification markings — that is, more than twice the amount produced on June 3, 2022, in response to the grand jury subpoena — were seized," the DOJ wrote. | 2022-08-31T04:59:22Z | www.cnbc.com | Trump Mar-a-Lago raid: DOJ opposes special master request | https://www.cnbc.com/2022/08/30/trump-mar-a-lago-raid-doj-opposes-special-master-request.html | https://www.cnbc.com/2022/08/30/trump-mar-a-lago-raid-doj-opposes-special-master-request.html |
The rate is the ninth consecutive record for consumer price rises in the region, with the climb starting back in November 2021. Headline inflation in the euro zone hit 8.9% (year-on-year) in July.
The French inflation rate decreased to 6.5% in August, down from 6.8% in July, it was announced Wednesday. The rate is lower than expectations, with Reuters economists having anticipated a drop to 6.7%.
Spain also released slowing inflation figures in August, at 10.4% year-on-year compared to 10.8% for July, according to preliminary figures from the National Statistics Institute.
Meanwhile the region's largest economy, Germany, saw inflation reach its highest level in almost half a century at 8.8% year-on-year in August.
France's Le Maire: EU must decouple price of gas and decarbonized energy 'as soon as possible' | 2022-08-31T09:35:24Z | www.cnbc.com | Euro zone inflation hits another record of 9.1% as food and energy prices soar | https://www.cnbc.com/2022/08/31/euro-zone-inflation-hits-another-record-of-9point1percent-as-food-and-energy-prices-soar.html | https://www.cnbc.com/2022/08/31/euro-zone-inflation-hits-another-record-of-9point1percent-as-food-and-energy-prices-soar.html |
NASA taps SpaceX for 5 more astronaut missions, worth $1.4 billion in contracts
Worth an additional $1.4 billion to the company, the extra flights mean that SpaceX has won 14 crew missions to date.
The SpaceX Falcon 9 rocket, carrying astronauts Doug Hurley and Bob Behnken in the Crew Dragon capsule, lifts off from Kennedy Space Center, Fla., on Saturday, May 30, 2020. The SpaceX Demo-2 mission is the first crewed launch of an orbital spaceflight from the U.S. in nearly a decade.
SpaceX's Crew Dragon spacecraft has been competing with Boeing and its Starliner capsule for contracts under Commercial Crew. While both companies have now been awarded nearly $5 billion to develop and launch their respective capsules, SpaceX has won 14 missions and Boeing has won six. The latter has yet to launch astronauts with Starliner.
Due to delays, and the fixed-price nature of NASA's contracts for the program, Boeing has absorbed $688 million in costs from delays and additional work on the capsule. After successfully completing an uncrewed Starliner flight to the ISS in May, the company now aims to carry astronauts for the first time in February.
Between SpaceX and Boeing, the agency has awarded contracts for 20 flights to date, covering crew missions until 2030 when the ISS is expected to retire from use.
How SpaceX beat Boeing in the race to launch NASA astronauts to space | 2022-08-31T21:45:01Z | www.cnbc.com | NASA awards SpaceX $1.4 billion in contracts for 5 more astronaut missions | https://www.cnbc.com/2022/08/31/nasa-awards-spacex-1point4-billion-in-contracts-for-5-more-astronaut-missions.html | https://www.cnbc.com/2022/08/31/nasa-awards-spacex-1point4-billion-in-contracts-for-5-more-astronaut-missions.html |
It is the first time the FDA has authorized an updated vaccine formula since the shots started in December 2020.
A medical staff prepares a booster dose of Pfizer's coronavirus disease (COVID-19) vaccine are seen at a vaccination centre in Brussels, Belgium, January 5, 2022.
The Food and Drug Administration authorized Covid booster shots Wednesday that target the omicron BA.5 subvariant as the U.S. prepares for another surge of infections this fall and winter.
It is the first time the FDA has authorized an updated vaccine formula since the original shots rolled out in December 2020. Pharmacies are expected to start administering the new boosters after Labor Day weekend.
Pfizer's new booster dose is authorized for people ages 12 and older, while Moderna's new shots are authorized for adults ages 18 and older. The eligible age groups can receive the boosters two months after completing their primary series or their most recent booster with the old shots.
New York City employers are ready for the post-pandemic phase, says Kathryn Wylde
The U.S. will no longer use the original vaccines as booster doses for individuals ages 12 and older now that the the updated shots have been authorized, according to the FDA.
The Centers for Disease Control and Prevention has to sign off on the boosters before pharmacies can give them to patients. The CDC's independent advisory committee is scheduled to meet Thursday and Friday to review the data and issue its recommendations for health-care providers.
Public health officials believe the redesigned boosters will provide longer-lasting protection against the virus and reduce hospitalizations this fall and winter. The new boosters target both the original strain that emerged in China more than two years ago, which scientists refer to as the "wild type," and omicron BA.4 and BA.5, which are now the dominant variants in the U.S.
The vaccine makers developed the original shots against the strain of Covid that first emerged in Wuhan, China, in 2019. But the virus has mutated dramatically since then. Omicron and its subvariants have drifted so much from the original Covid strain that the virus is able to slip past the protective antibodies induced by the vaccines.
"There is declining effectiveness against hospitalization and severe illness. The problem has been persuading the American people to get boosted on a regular basis," said Dr. Peter Hotez, an infectious disease expert at the Baylor College of Medicine in Texas. Hotez led a team that developed a Covid vaccine based on protein technology that is authorized in India.
Three shots were 19% effective at preventing infection from omicron five months after the third shot, according to CDC data from August 2021 through May 2022. The rapidly spreading BA.4 and BA.5 subvariants have since driven omicron BA.2 out of circulation.
Dr. Peter Marks, head of the FDA office responsible for reviewing vaccines, said the hope is that the updated boosters will restore the high level of protection against disease that vaccines demonstrated when they were first authorized in December 2020.
"We don't know for a fact yet whether we will get to that same level, but that is the goal here. And that is what we believe the evidence that we've seen helps point to," Marks told reporters during a news conference after the authorization Wednesday.
The Biden administration moved rapidly over the summer to get updated shots ready for the fall. Public health officials are worried the U.S. is on the verge of another wave of infection as more transmissible omicron variants spread, immunity from the original vaccines wears off, and people head indoors to escape colder weather.
As a consequence, the authorization is based on human clinical trials from the BA.1 shots, which produced a better immune response than the original doses, according to the FDA. But it's unclear how the BA.5 boosters will perform in humans since the data is based on BA.1.
Marks said it will likely be at least another two months before human clinical data on the BA.5 shots is made available to the public.
The most common side effects from the human trials of the BA.1 shots was pain, redness, swelling at the injection site, fatigue, headaches, muscle pain, joint pain, chills, nausea, vomiting and fever, according to the FDA. The Covid vaccines also have a well-established safety profile after administration to millions of people over the course of the pandemic, the FDA said.
In addition to human data from the BA.1 shots, the authorization was also based on animal studies from the BA.5 boosters, Marks said. In June, Pfizer also presented data to the FDA's independent vaccine advisory committee that showed the bivalent omicron BA.5 shots increased antibodies in mice that protect against infection by about 2.6-fold compared with the original vaccine.
Marks said the FDA used the same process for the authorization that it relied on in the past for switching the strains in flu vaccines.
"We're pretty confident that or what we have is very similar to the situation that we've done in the past with influenza changes where we don't do clinical studies for them in the United States," Marks said. "We know from the way the vaccine works, and from the data that we have, that we can predict how well the vaccine will be working."
But some infectious disease and vaccine experts say the FDA should have waited for human data from the BA.5 shots before authorizing them. Dr. Paul Offit, a member of the FDA's advisory committee, said data based on mice studies is not sufficient to justify authorizing the new boosters.
"You can't ask millions of people to get this booster dose without showing some human data that you have a dramatic increase in neutralizing antibodies to the BA.4/BA.5 strains as compared to boosting with the ancestral type," Offit said, referring to the currently authorized shots based on the version of Covid that emerged in China, more than two years ago.
"It's not that I don't think it could work," Osterholm said. "But I think we need the data first to show that the immune response to this vaccine is equivalent to or better than what we have already."
"There's always a question here of being too slow versus too fast," Walensky told "Conversations on Health Care" in a radio interview. "One of the challenges is if we wait for those data to emerge in human data [...] we will be using what I would consider to be a potentially outdated vaccine." | 2022-09-01T00:51:43Z | www.cnbc.com | FDA authorizes Covid booster shots that target omicron BA.5 variant | https://www.cnbc.com/2022/08/31/fda-authorizes-covid-booster-shots-that-target-omicron-bapoint5-variant-.html | https://www.cnbc.com/2022/08/31/fda-authorizes-covid-booster-shots-that-target-omicron-bapoint5-variant-.html |
GTQB-FF
One of the turbines at the Hornsea 2 offshore wind farm. According to Danish energy firm Orsted, the facility has a capacity of more than 1.3 gigawatts.
According to Orsted, it has a capacity of more than 1.3 gigawatts and stretches across an area of 462 square kilometers. Hornsea 2, it added, uses Siemens Gamesa turbines with blades measuring 81 meters, or more than 265 feet.
The U.K. is home to a mature offshore wind sector that looks set to expand in the coming years, with authorities aiming for up to 50 GW of capacity by 2030. The European Union, which the U.K. left in January 2020, has previously laid out a 300 GW target for offshore wind by the middle of this century. | 2022-09-01T05:25:30Z | www.cnbc.com | Huge offshore wind farm Hornsea 2 is fully operational, Orsted says | https://www.cnbc.com/2022/09/01/huge-offshore-wind-farm-hornsea-2-is-fully-operational-orsted-says.html | https://www.cnbc.com/2022/09/01/huge-offshore-wind-farm-hornsea-2-is-fully-operational-orsted-says.html |
Idle cranes line empty docks at the port of Constanta, Romania, on Tuesday, June 21, 2022. Oil prices will hold steady for the rest of the year with marginal declines in 2023, analysts estimated, with the exception of one who foresees "more bullish than bearish factors" for the market going forward.
Aerial view of YPF La Plata refinery on August 1, 2022 in La Plata, Argentina. YPF's La Plata refinery plant is one of the main plants of YPF refinery and can process about 190,000 barrels of raw oil per day. An expert from JPMorgan in August maintained a modest estimate of $101 a barrel for the rest of the year, after coming off an earlier peak in the second quarter of 2022.
Dan Yergin says oil prices could be 'where it is or somewhat higher' at year-end
Gas prices are displayed at a petrol station in Monterey Park, California, on July 19, 2022. - US gasoline prices have fallen from historic highs earlier in the summer, a retreat highlighted by a politically beset White House as a sign of moderating inflation. Global oil markets have seen a rollercoaster ride in the first half of 2022 — from skyrocketing to more than $120 per barrel when the Russian-Ukraine war broke out, to the present relief of $101.70 per barrel for Brent crude, and $94.11 a barrel for the U.S. West Texas Intermediate. | 2022-09-01T08:28:07Z | www.cnbc.com | Oil prices will hold steady but ‘more bullish' factors ahead | https://www.cnbc.com/2022/09/01/oil-prices-will-hold-steady-but-more-bullish-factors-ahead.html | https://www.cnbc.com/2022/09/01/oil-prices-will-hold-steady-but-more-bullish-factors-ahead.html |
Published Wed, Aug 31 20221:52 PM EDT
When President Joe Biden recently signed the Inflation Reduction Act into law, he authorized $80 billion in funding for the Internal Revenue Service over the next 10 years.
More than $45 billion is earmarked for enforcement — part of an effort to close the estimated $600 billion "tax gap," the difference between what Americans owe and what they actually pay.
To this end, the bill calls for an uptick in hiring at the IRS, a detail that critics of the bill have homed in on. The image you've likely seen bouncing around social media: an "army" of 87,000 new IRS agents beating down your doors to conduct audits.
The legislation will indeed result in increased audit activity, but claims of a new army of IRS agents and rampant audits on everyday Americans are misleading, tax experts say.
Below, tax pros explain where the money is going, why you're very unlikely to be audited and what you can do now to make the prospect even unlikelier.
IRS hiring is meant to get to 'status quo'
That 87,000-agent figure isn't an arbitrary number. But to put it into context, it's important to examine the state of the IRS.
"There are a bunch of problems. They have about 8 million unprocessed 2021 returns and only answered 11% of calls in 2021," says Bill Smith, national director of tax technical services at CBIZ MHM's National Tax Office in Washington, D.C. "There's been a 17% reduction in the [IRS] workforce since 2010."
What's more, the IRS's workforce is aging. Between retirement and other departures, the agency will lose around 50,000 of its 80,000 workers over the next five years, according to 2021 congressional testimony from IRS Commissioner Charles Rettig.
Back to the 87,000 new agents: That number comes from a May 2021 report from the Treasury Department assessing how the IRS could use an $80 billion appropriation. The report says the IRS could add nearly 87,000 new staff — not all of them enforcement agents — in order to "rebuild" and "revitalize" the agency.
In other words, that figure is not from the IRS or from the official law (how exactly the agency will spend the money remains to be seen). It's an estimate that accounts for a huge amount of attrition at the agency.
"When we hear 87,000 agents, it sounds like a horrifying army of people. But it's what they need to maintain, because people are exiting in volumes," says Robert Cordasco, a certified public accountant and founder of Cordasco & Co. in Savannah, Georgia. "I don't know how much it adds as much as it gets us to the status quo."
What to know about audits
Under the new law, the IRS does plan to do more audits. But it's important to remember that audits are rare, and have only grown rarer in recent years as the IRS has bled staff and resources.
Between 2010 and 2019, audit rates for individuals dropped from 0.9% to 0.25%, according to a report from the Government Accountability Office. Those rates vary by income level, with those making less than $25,000 and those with incomes above $200,000 receiving higher-than-average scrutiny in recent years.
The new efforts to close the tax gap are unlikely to focus on mom-and-pop taxpayers, experts say.
"The absolute number of audits will go up, but the share of people being audited will likely be the same for households earning less than $400,000 per year," says Glenn Borst, senior legal analyst at Wolters Kluwer Legal and Regulatory U.S.
The bulk of new audit activities will be directed at high-net-worth individuals, large corporations and complex partnerships, he adds.
How to avoid an audit
If you're still worried that you'll fall into the less than 1% of taxpayers who have their returns audited, be sure to avoid common mistakes the IRS computer system is more likely to flag.
"Some mistakes that taxpayers make may seem obvious, but they get overlooked," says Borst. Here are some of the most common ones he sees.
Mathematical errors
Numbers in your return not matching documents submitted by other payers
Mismatched tax ID numbers
Income not matching
Mis-entering dependents' Social Security numbers
Forgetting to sign your return
Overestimating the value of property donated to charity
Reporting unusually large deductions (say, for business expenses) compared with previous years
Claiming losses from a business activity the IRS views as a hobby ("Horse breeding is a classic," Borst says.)
You'd also be wise to figure out the exact amount for any deduction you're claiming, rather than using round numbers, Borst adds. "The IRS uses a mathematical approach to select returns for audit," he says. "If you say your travel expenses are $400, they say, 'That doesn't look right.' If you say $397, that looks more realistic."
But remember, even if it seems like the IRS is getting a huge injection of cash, it will be a while before any beefed up enforcement begins.
"This is a 10-year budget. I don't see any immediate impact on the IRS," says Cordasco. "You still always need to be cognizant of coloring within the lines."
Don't miss: Could the IRS let everyone file taxes for free? Why Congress is considering cutting out the middlemen | 2022-09-01T14:16:09Z | www.cnbc.com | IRS is not hiring an 'army' of auditors, what's really happening | https://www.cnbc.com/2022/08/31/irs-is-not-hiring-an-army-of-auditors-whats-really-happening.html | https://www.cnbc.com/2022/08/31/irs-is-not-hiring-an-army-of-auditors-whats-really-happening.html |
Amazon turned off solar energy systems at all of its U.S. facilities in 2021 after a rash of fires and explosions, including one at its Fresno warehouse in 2020.
The documents, which have never been made public, indicate that between April 2020 and June 2021, Amazon experienced "critical fire or arc flash events" in at least six of its 47 North American sites with solar installations, effecting 12.7% of such facilities. Arc flashes are a kind of electrical explosion. | 2022-09-01T17:38:19Z | www.cnbc.com | Amazon took solar rooftops offline last year after fires, explosions | https://www.cnbc.com/2022/09/01/amazon-took-solar-rooftops-offline-last-year-after-fires-explosions.html | https://www.cnbc.com/2022/09/01/amazon-took-solar-rooftops-offline-last-year-after-fires-explosions.html |
Nvidia said on Thursday that the U.S. Government told the company it can continue to develop its H100 artificial intelligence chip in China.
Nvidia stock fell over 11% during trading on Thursday.
Nvidia on Thursday said the U.S. Government will allow it to continue developing its H100 artificial intelligence chip in China. It's a win for the company after it warned on Wednesday that new export restrictions could hamper its operations in the country.
Nvidia said in an SEC filing Wednesday that the U.S. government is restricting sales of high-performance AI chips for servers, the A100 and H100, to China and Russia. Sales of both chips are still restricted in those markets, though it can still develop the H100 in China. Nvidia expects a $400m hit to revenue in the current quarter from new export restrictions.
"The U.S. government has authorized exports, reexports, and in-country transfers needed to continue NVIDIA Corporation's, or the Company's, development of H100 integrated circuits," Nvidia said in a filing on Thursday.
The Biden administration is working to limit U.S. exports of certain semiconductors and equipment because of fears that Chinese companies could use them for military purposes. Graphics processors like the kind that Nvidia and AMD make are well-suited for artificial intelligence applications that could include weapons development, facial recognition, and other military uses.
Investors should not write off Nvidia, says Jim Cramer
Nvidia's data center business, which includes sales of the A100 and H100, is one of the fastest growing parts of the company, reporting $3.8 billion in sales in the June quarter, a 61% annual increase.
However, Nvidia CEO Jensen Huang warned analysts in August that Chinese cloud companies were slowing down building out their data centers and that China was a "very large market" for the company. Nvidia said on Thursday that it can continue to ship AI chips from its Hong Kong facility through Sept. 2023.
"While there are potential near and intermediate term risks from the export ban, Nvidia is working closely with the USG to navigate through the situation and we believe the USG is fully aware of the critical/strategic importance of Nvidia's accelerated compute platform to the global tech industry," JPMorgan analyst Harlan Sur wrote in a note on Thursday.
The Department of Commerce said that the new export restrictions are related to national security, but it didn't answer follow-up questions about whether it clarified or changed the policy for Nvidia.
"While we are not in a position to outline specific policy changes at this time, we are taking a comprehensive approach to implement additional actions necessary related to technologies, end-uses, and end-users to protect U.S. national security and foreign policy interests," a Department of Commerce representative said on Wednesday.
AMD also said Wednesday that it received new license requirements from the Department of Commerce, but did not expect them to materially affect its business because of lower China exposure. AMD stock fell more than 7% during trading on Thursday. | 2022-09-01T17:38:25Z | www.cnbc.com | Nvidia says U.S. government allows A.I. chip development in China | https://www.cnbc.com/2022/09/01/nvidia-says-us-government-allows-ai-chip-development-in-china.html | https://www.cnbc.com/2022/09/01/nvidia-says-us-government-allows-ai-chip-development-in-china.html |
Published Thu, Sep 1 202212:08 PM EDT Updated 26 Min Ago
People walk past a COVID-19 walk up testing site on July 28, 2022 in New York City.
About 95% of people ages 16 and older in the U.S., in fact, have Covid antibodies of some sort — either from vaccination or prior infection, according to the CDC survey of blood donor data. This means more people in the U.S. have at least some protection against severe disease and death from Covid than at any other point in the pandemic.
While the CDC previously though that infection provided about 90 days of protection, Jha told reporters in July that breakthrough infections have become more common and are happening earlier with BA.5. He said it's unclear how long immunity lasts after recovering from a BA.5 infection.
More than 32,000 people total are hospitalized across the U.S. with Covid right now, and an average of nearly 400 people are still dying every day from the virus, according to data from the CDC and Health and Human Services Department.
"Will we continue to see this kind of activity maintained for some time? People will say it can't go on endlessly because people will be infected develop immunity. But what happens with waning immunity?" Osterholm said.
Jennifer Nuzzo, an epidemiologist at Brown University School of Public Health, said she is worried about the elderly and those with weak immune systems who are not up to date on their vaccines heading into the fall. Nuzzo said the public health response this fall should be laser focused on making sure these people are protected.
"I have some worry that unless we put that at the top of our list, our efforts are just going to be diluted, spread out over a number of different areas," Nuzzo said. "If we fail to make sure the highest risk people are fully protected, that's when we're going to see the deaths and that's the most important thing we could try to prevent."
Dr. Paul Offit, an infectious disease expert at Children's Hospital Philadelphia, said people ages 75 and older, people with serious medical conditions and those with compromised immune systems would benefit the most from getting a booster right now. Deaths from Covid have risen in particular among people ages 75 and older, according to CDC. | 2022-09-01T17:38:31Z | www.cnbc.com | U.S. health officials brace for another fall Covid surge, but with fewer deaths | https://www.cnbc.com/2022/09/01/us-health-officials-brace-for-another-fall-covid-surge-but-with-fewer-deaths.html | https://www.cnbc.com/2022/09/01/us-health-officials-brace-for-another-fall-covid-surge-but-with-fewer-deaths.html |
Narasimhan most recently served as CEO of Reckitt, a health, hygiene and nutrition company.
Shares of the company rose less than 1% in extended trading on the news.
Narasimhan most recently served as CEO of Reckitt, a health, hygiene and nutrition company. He announced earlier Thursday he was stepping down from that role. He'll join Starbucks in October, learning about the company and its reinvention plan, before assuming the top job in April.
Until April, Howard Schultz will continue as interim CEO of the coffee chain he grew into a global giant. Schultz will remain on Starbucks' board after Narasimhan succeeds him.
In April, Schultz's handpicked successor Kevin Johnson retired after five years, leaving the top job open. Schultz returned to the company as its interim CEO, earning just $1 for his salary. In the meantime, Schultz and the Starbucks board hunted for a long-term successor, with the intention of announcing the new CEO in the fall. (The coffee chain brought back the Pumpkin Spice Latte and other fall menu items on Tuesday.)
Starbucks is holding an investor day on Sept. 13 in Seattle, where it's expected to unveil more details about the bold changes Schultz wants to make to the company. Schultz has previously said that he wants to reinvent the employee, customer and store experience to reckon with how the world has changed since the pandemic. Starbucks said in the press release that Schultz will remain "closely involved" with the plan and act as an advisor to Narasimhan. | 2022-09-01T20:43:28Z | www.cnbc.com | Starbucks names Laxman Narasimhan as new CEO, starting in April | https://www.cnbc.com/2022/09/01/starbucks-says-laxman-narasimhan-will-take-over-as-ceo-in-april.html | https://www.cnbc.com/2022/09/01/starbucks-says-laxman-narasimhan-will-take-over-as-ceo-in-april.html |
Judge in Trump raid case says she will rule later on bid for special master for documents
A federal judge in Florida ended a court hearing without ruling on a request by former President Donald Trump to appoint an independent watchdog to review documents seized by FBI agents n the Aug. 8 raid of his Mar-a-Lago residence.
The Department of Justice is opposing the appointment of the watchdog, known as a special master.
A member of the Secret Service is seen in front of the home of former President Donald Trump at Mar-A-Lago in Palm Beach, Florida on August 9, 2022.
A federal judge in Florida ended a court hearing Thursday without ruling on a pending request by former President Donald Trump to appoint an independent watchdog to review government documents seized by FBI agents in the Aug. 8 raid of his Mar-a-Lago residence.
Judge Aileen Cannon said she will rule later after listening to arguments from Trump's legal team and federal prosecutors at the hearing, which was scheduled after the former president sued to have a so-called special master appointed to examine the documents.
The Department of Justice is opposing the call for a special master, arguing that it will delay the DOJ's criminal investigation into the removal of White House records when Trump left office in early 2021.
By law, White House records must be turned over to the National Archives and Records Administration when a president leaves office.
The DOJ also has said that a review of the documents by a team of internal department watchdogs already has completed its own review and identified some records that would potentially be exempt from use in the investigation because they are protected by the attorney-client privilege.
Jay Bratt, the DOJ's top counterintelligence official, at the hearing also argued that Trump is not entitled to a review by a third party of the documents because "he is no longer the president."
"And because he's no longer the president he had no right to those documents ... that ends the analysis," Brat said.
Special masters, often drawn from the ranks of retired judges, are typically appointed in cases where there is a risk that some of the records seized by law enforcement should be barred from use in an investigation because they are protected by the attorney-client privilege.
Trump's lawyers however, argue that some of the records could be protected by executive privilege that would result from him having been president at the time they were created.
Authorities have said that NARA tried for about a year after Trump left the White House in January 2021 to obtain documents it suspected were still in his possession. When Trump did give up 15 boxes of records from Mar-a-Lago earlier this year, they were found to contain highly classified material, leading to the opening of the DOJ probe, and eventually the Aug. 8 raid.
Trump has argued that he declassified the records before leaving office. But whether or not the documents remain classified is irrelevant under the criminal laws that the DOJ is eyeing in the case, which includes the espionage statute and obstruction of justice.
Trump lawyer Jim Trusty during Thursday's hearing repeated an analogy that has become popular among defenders of the former president.
"We've characterized it at times as an overdue-library-book scenario where there's a dispute — not even a dispute — but ongoing negotiations with [the National Archives] that has suddenly been transformed into a criminal investigation," Trusty said, according to NBC News. | 2022-09-01T20:43:34Z | www.cnbc.com | Judge in Trump FBI raid case to rule later on special master bid | https://www.cnbc.com/2022/09/01/trump-fbi-raid-ruling-on-special-master-to-come-later-judge-says.html | https://www.cnbc.com/2022/09/01/trump-fbi-raid-ruling-on-special-master-to-come-later-judge-says.html |
Ravil Maganov, chairman of the Russian oil giant Lukoil, died Thursday after falling out of the window of the capital's Central Clinical Hospital, according to the Russian state-sponsored news outlet Interfax.
WASHINGTON -- The death of Ravil Maganov, chairman of the Russian oil giant Lukoil, at a hospital in Moscow on Thursday appears to mark the eighth time this year that a Russian energy executive has died suddenly and under unusual circumstances.
Maganov died after falling out of the window of the capital's Central Clinical Hospital, according to the Russian state-sponsored news outlet Interfax. The circumstances of Maganov's death were confirmed by Reuters, citing two anonymous sources.
But Lukoil, the company that Maganov helped to build, said the 67 year old had "passed away following a serious illness" in a press statement. The Russian embassy in Washington did not respond to a request from CNBC for an official statement.
In late January, Leonid Shulman, a top executive at the Russian natural gas giant Gazprom, was found dead in the bathroom of a cottage in the village of Leninsky. The Russian media group RBC reported his death, but did not cite a cause.
On April 18, a former vice president of Gazprombank, Vladislav Avayev, was found dead in his Moscow apartment, alongside his wife and daughter, who also died. Authorities treated the case as a murder-suicide, Radio Free Europe reported at the time. Gazprombank is Russia's third largest bank and has close ties to the energy sector.
In May, the body of billionaire and former Lukoil executive Alexander Subbotin was discovered in the basement of a country house in the Moscow region. The room where Subbotin died was allegedly used for "Jamaican voodoo rituals," the Russian state media outlet TASS reported, quoting local authorities.
In July, Yury Voronov, the CEO and founder of a shipping contractor that services Gazprom's Arctic projects was found dead of an apparent gunshot wound in a swimming pool at his home in Leninsky, the same elite St. Petersburg gated community where Shulman and Tyulakov died earlier in the year. | 2022-09-01T22:14:23Z | www.cnbc.com | Lukoil chairman Ravil Maganov is the 8th Russian energy executive to die suddenly this year | https://www.cnbc.com/2022/09/01/lukoil-chairman-ravil-maganov-is-the-8th-russian-energy-executive-to-die-suddenly-this-year.html | https://www.cnbc.com/2022/09/01/lukoil-chairman-ravil-maganov-is-the-8th-russian-energy-executive-to-die-suddenly-this-year.html |
A risk-free 2-year Treasury now yields double the average corporate dividend, luring income seekers
Published Thu, Sep 1 202210:54 AM EDT Updated Thu, Sep 1 202212:48 PM EDT
The latest big move in the Treasury market has created an attractive opportunity that could tempt income-hungry investors to shift away from stocks. The U .S. 2-year Treasury yield topped 3.5% on Thursday, hitting its highest level since November 2007. That's more than double the dividend yield of the S & P 500, according to Bespoke Investment Group . Bond yields move inverse of prices. The divergence comes even as stocks remain relatively expensive, despite this year's declines. Strategas Research partner Chris Verrone said in a note to clients on Wednesday that the price-to-earnings ratio for the S & P 500 was at 14 times in 2007 versus 17 times currently. The rise of short-term Treasury yields gives risk-averse investors a place to park their money and collect a solid cash flow, with little risk of a default or an equity market decline that comes with investments in corporate debt or stocks. While it can be cumbersome for individuals to buy bonds, there are mutual funds and ETFs, such as the iShares 1-3 Year Treasury ETF, that can help investors gain exposure to the short end of the Treasury curve. However, betting on Treasurys does mean investors forfeit some upside potential that comes with holding stocks. The trade could also look less attractive a few years down the line, especially for less active investors, said John Luke Tyner, a portfolio manager at Aptus Capital Advisors. "With the volatility in rates, you take on a lot of reinvestment risk," Tyner said. "Yeah, you get the 2-year at 3.50%, but in 2 years where are rates?" Reinvestment risk means that it is unclear what the yield environment or corporate dividend levels will be when it is time to put the interest payments and principal back into the market. This can be key in bond markets, where it can be more difficult for investors to trade in and out of positions quickly. Tyner pointed to the inverted yield curve as an indication that the market expects the Federal Reserve to cut rates in the coming years. "Rates, over the future, are probably going to go down," he said. Of course, if the stock market doesn't rise before a bond matures or is sold, or if the market's dividend yield doesn't grow, that would not be a bad trade. Investors would be able to reinvest the proceeds from the bond investment into the stock market after having collected the higher yield in the meantime. Additionally, there are still some stocks that offering dividend yields close to or above the 2-year Treasury yield, with a chance for more upside that the government bond market can provide. For his firm's portfolio, Tyner said he has been cutting credit risk, such as emerging market debt, and adding Treasury Inflation-Protected Securities in recent weeks. | 2022-09-03T05:05:17Z | www.cnbc.com | Risk-free 2-year Treasury yields double the average corporate dividend | https://www.cnbc.com/2022/09/01/a-risk-free-2-year-treasury-now-yields-double-the-average-corporate-dividend-luring-income-seekers.html | https://www.cnbc.com/2022/09/01/a-risk-free-2-year-treasury-now-yields-double-the-average-corporate-dividend-luring-income-seekers.html |
The verdict is out on Bed Bath & Beyond 's turnaround plan. While analysts think the retailer's attempt to fix its problems and lure back customers is a good start, it will do little to imminently fix the struggling business. "While we believe the company has made progress with its upgraded management team, and the stock is not discounting much given current valuation, results indicate that much work remains, while this highly competitive, fragmented, and historically promotional category (and broader consumption) are expected to slow in 2022," wrote JPMorgan's Christopher Horvers in a note to clients. The commentary from analysts across the industry comes as the battered retailer on Wednesday announced a plan to close roughly 150 stores and lay off 20% of its workforce in an effort to cut costs and improve its business. The company also said it secured about $500 million in new financing. While improved liquidity could help Bed Bath & Beyond by providing additional time to fix its issues, Telsey Advisory Group's Cristina Fernández thinks the pain persists for the retailer. "However, we remain concerned by the magnitude of the sales decline and believe it will be challenging to win consumers back in a softer economic climate when the consumer is spending less on home, and in a more competitive and promotional retail landscape," she said in a note to clients. As part of its turnaround efforts, Bed Bath & Beyond also said it will discontinue three of its private labels and bring back national brands to lure customers. Additionally, the retailer announced the departure of additional executives after former CEO Mark Tritton and others left the company earlier this year. Bank of America's Jason Haas believes the departure of several key management members could further stymie Bed Bath & Beyond's turnaround efforts going forward. "BBBY is in the midst of a turnaround effort that may now be interrupted by the departure of key members of the management team," he said. "Additionally, the company has been underperforming the industry and we think consensus estimates may be optimistic." Bed Bath & Beyond has come under pressure in recent months as it struggles to reverse declining sales and lure back customers. The company has also said it expects a larger-than-expected 26% decline in same-store sales for the second quarter. At the same time, Bed Bath & Beyond shares have experienced enhanced volatile in recent weeks as the subject of another meme stock frenzy that at one point sent the stock skyrocketing more than 300% in August. Shares have come down from their highs as activist investor Ryan Cohen sold his entire stake in the company . Amid this backdrop, Bed Bath & Beyond stock is down 34.6% this year despite a more than 89% gain in August. Shares sit about 68% off their 52-week highs. — CNBC's Michael Bloom contributed reporting | 2022-09-03T05:05:48Z | www.cnbc.com | Bed Bath & Beyond's turnaround is not enough to fix the struggling business, analysts say | https://www.cnbc.com/2022/09/01/bed-bath-beyonds-turnaround-is-not-enough-to-fix-the-struggling-business-analysts-say.html | https://www.cnbc.com/2022/09/01/bed-bath-beyonds-turnaround-is-not-enough-to-fix-the-struggling-business-analysts-say.html |
Aerial view of the Diablo Canyon, the only operational nuclear plant left in California, is viewed in these aerial photos taken on December 1, 2021, near Avila Beach, California. Set on 1,000 acres of scenic coastal property just north and west of Avila Beach, the controversial power plant operated by Pacific Gas & Electric (PG&E) was commissioned in 1985. | 2022-09-03T05:06:06Z | www.cnbc.com | California lawmakers vote to keep Diablo Canyon nuclear plant open | https://www.cnbc.com/2022/09/01/california-lawmakers-vote-to-keep-diablo-canyon-nuclear-plant-open.html | https://www.cnbc.com/2022/09/01/california-lawmakers-vote-to-keep-diablo-canyon-nuclear-plant-open.html |
Technology manufacturers Micron, First Solar, Corning have announced new investments in the last week
President Joe Biden Thursday praised progress made in the manufacturing sector weeks after the passage of the Chips and Science Act, which invested billions of dollars in domestic semiconductor manufacturing.
The lab, which is the first of its kind built in America in over 20 years, is projected to create 17,000 new American jobs by the end of 2032, according to the company.
Over $52 billion was allotted to U.S. companies producing computer chips under the act, along with billions in tax credits to spur investments in semiconductor manufacturing to enable the U.S. to compete with East Asia. The region accounts for 75% of global production of semiconductors.
Micron first announced a $40 billion investment in memory chip manufacturing at that time. The investment, said the White House, will create 40,000 new jobs in construction and manufacturing and raise the U.S. market share of memory chip production from less than 2% to up to 10% over the next 10 years.
Solar power company First Solar announced $1.2 billion in developments Tuesday, including a new factory in the southeastern part of the country and an expansion of its Northwest Ohio manufacturing footprint. The investments will add at least 850 new manufacturing jobs with the additional goal of supporting over 15,000 jobs by 2025, according to a press release.
Corning, a New York-based advanced optics manufacturer, said Tuesday it is partnering with AT&T in a new optical cable manufacturing facility in Arizona. The facility will bring approximately 250 jobs to the area and is expected to open in 2024, according to a press release.
However, Federal Reserve officials have warned that their intentions to continue raising interest rates to combat inflation could raise the level of unemployment in the months ahead. | 2022-09-03T05:08:18Z | www.cnbc.com | Job growth, investments in manufacturing sector tied to White House economic plan, Biden says | https://www.cnbc.com/2022/09/01/job-growth-investments-in-manufacturing-sector-tied-to-white-house-economic-plan-biden-says.html | https://www.cnbc.com/2022/09/01/job-growth-investments-in-manufacturing-sector-tied-to-white-house-economic-plan-biden-says.html |
A new exchange-traded fund is trying to turn the booming industry of Korean pop music into a simple trading strategy for U.S.-based investors. The KPOP and Korean Entertainment ETF, which begins trading on Thursday under the ticker "KPOP," is designed to hold stocks that trade in South Korea and could benefit from the continued international spread of the country's entertainment industry. K-pop music has already reached the White House in the form of boy band BTS' visit in May. The fund will be based on a bespoke "KPOP Index" created by CT Investments, which is also launching the fund. The index is made up of South Korean companies in entertainment or interactive media and services, and CT Investments will use artificial intelligence to identify companies that are most associated with Korean music and other forms of popular entertainment, according to the fund's prospectus. The fund's top holdings include entertainment giants with K-pop record labels, such as Hybe and JYP Entertainment. Source: CT Investments There are some caveats investors should be aware of, however. For one, the KPOP Index designed for this fund does not have a public track record. And though the index is market-cap weighted, its minimum market capitalizations translates to about $75 million in the U.S., meaning investors could be exposed to very small companies in the fund. Additionally, many entertainment stocks have suffered globally during this year's equity market downturn, and the fund could struggle to gain traction. That could mean that investors see low liquidity in the fund, which could impact the performance of trades. Because the companies in the fund operate overseas, currency risk is another consideration for investors. | 2022-09-03T05:09:19Z | www.cnbc.com | New K-pop ETF gives investors a chance to bet on Korea's entertainment boom | https://www.cnbc.com/2022/09/01/new-k-pop-etf-gives-investors-a-chance-to-bet-on-koreas-entertainment-boom.html | https://www.cnbc.com/2022/09/01/new-k-pop-etf-gives-investors-a-chance-to-bet-on-koreas-entertainment-boom.html |
Published Thu, Sep 1 202210:42 AM EDT Updated An Hour Ago
The Global Supply Chain: Temporary relief at one of the world's largest ports
Shipping containers are unloaded from a ship at a container terminal at the Port of Long Beach-Port of Los Angeles complex, in Los Angeles, California, April 7, 2021. | 2022-09-03T05:09:31Z | www.cnbc.com | Port of New York and New Jersey delay late container fee | https://www.cnbc.com/2022/09/01/port-of-new-york-and-new-jersey-delay-late-container-fee-.html | https://www.cnbc.com/2022/09/01/port-of-new-york-and-new-jersey-delay-late-container-fee-.html |
Tipping 20% at a sit-down restaurant is still the standard however, consumers are less inclined to give as much for a carry-out coffee or take-away snack.
"Part of it is tip fatigue," says Eric Plam, founder and CEO of Uptip.
Why Americans tip
At the Sweetly Bakery & Cafe in Battle Ground, Washington, near Portland, Oregon, customers seem to be feeling a little less generous lately.
With inflation near record highs and consumers increasingly cash-strapped, a gratuity isn't what it used to be.
"Since everything got more expensive, we've seen a decline in tipping," said Sweetly's owner, Irina Sirotkina.
Although the average transaction at Sweetly is less than $20, which means a gratuity would be a few dollars at most, fewer people leave anything at all.
Even though many Americans said they would tip more than usual once business activities resumed after the Covid pandemic, consumer habits haven't changed much in the end.
Other payment software providers have also reported that these types of tips have fallen over the last year. For example, Toast's rival, Square, found that the average tip at quick-service restaurants, which includes cafes and coffee shops, fell from 17.2% to 15.2% from March 2021 to the end of February, according to a report from The Wall Street Journal.
founder and CEO of Uptip
"Part of it is tip fatigue," said Eric Plam, founder and CEO of San Francisco-based startup Uptip, which aims to facilitate cashless tipping.
"During Covid, everyone was shell-shocked and feeling generous," Plam said. Now, "you are starting to see people pull back a little bit," he noted, particularly when it comes to point-of-sale tipping, which prompts customers to tip even before they've received the product or service.
In fact, the average wage for fast-food and counter workers is $14.34 an hour for full-time staff and $12.14 for part-time employees — including tips — according to the most recent data from the U.S. Bureau of Labor Statistics. | 2022-09-03T05:09:37Z | www.cnbc.com | Post-pandemic, Americans are tipping less generously for takeout | https://www.cnbc.com/2022/09/01/post-pandemic-americans-are-tipping-less-generously-for-takeout.html | https://www.cnbc.com/2022/09/01/post-pandemic-americans-are-tipping-less-generously-for-takeout.html |
Commuters arrive at Grand Central station during morning rush hour in New York, Nov. 18, 2021.
"We're seeing this rise in unemployment as accompanied by a significant increase in participation and then uptake as well in employment," she said. "I think that's a hopeful sign. The fact that the unemployment rate moves up is not a troubling thing on its own." | 2022-09-03T05:12:40Z | www.cnbc.com | August jobs report shows declining participation among Black workers | https://www.cnbc.com/2022/09/02/august-jobs-report-shows-declining-participation-among-black-workers.html | https://www.cnbc.com/2022/09/02/august-jobs-report-shows-declining-participation-among-black-workers.html |
As the Federal Reserve's rate-hiking cycle shows few signs of a slowdown, searching for safety is becoming key for investors. In recent weeks, some investors have found that safe haven in the 2-year Treasury note, which had its yield rise to a near 15-year high of 3.516% at one point on Thursday. Data from Bespoke Investment Group indicates that's more than double the yield of the S & P 500 . The latest moves in the short-term Treasury market — where bond yields move inversely to prices — could spell higher returns for investors going forward. It's also created a unique opportunity for buyers looking for income stability as equities continue their decline and risk appetite dries up among some investors. That said, there are some stocks continuing to offer similar or greater dividends than the yield on the 2-year note, which could mean more upside to patient investors in the future. To find these opportunities, CNBC Pro used FactSet to screen for S & P 500 stocks offering a higher dividend yield than the surging 2-year Treasury note. We also searched for stocks that are loved by analysts, with more than 50% saying to buy them and are expected to grow dividends by at least 5% next year. All the stocks boast an annual dividend of at least $1 per share. These are the names that came up: Of the stocks that made the cut, Devon Energy heeded the largest yield (6.6%), with an annual dividend of $1.30. Like other energy companies, shares of Devon have skyrocketed this year and are trading up 54% as oil prices surge. Analysts expect the company to grow its dividend by more than 202% next year. Going forward, Advance Auto Parts is expected to grow dividends per share by 225%. That's the biggest expected growth among the stocks within the screen. The company, which recently shared disappointing earnings and guidance as it grapples with rising inflation, pays a $3.30 annual dividend or a yield of 3.5%. A slew of financial companies and banks including Morgan Stanley and Fifth Third Bancorp also joined the list, with yields of 3.7% and 3.5%, respectively. Real estate investment trust VICI Properties , Olive Garden parent company Darden Restaurants and AbbVie also made the list.
Jesse Poundan hour ago | 2022-09-03T05:13:04Z | www.cnbc.com | Consider seeking shelter in these dividend growers offering more yield than the surging 2-year rate | https://www.cnbc.com/2022/09/02/consider-seeking-shelter-in-these-dividend-growers-offering-more-yield-than-the-surging-2-year-rate-.html | https://www.cnbc.com/2022/09/02/consider-seeking-shelter-in-these-dividend-growers-offering-more-yield-than-the-surging-2-year-rate-.html |
The August unemployment rate of 3.7% (higher than 3.5% expected) and average hourly earnings of 0.3%, also a tad lighter than expected, will give some cheer to the bulls, but it's not going to be enough to change the Fed narrative, not yet. "A weaker than expected employment report may prompt the Fed to only raise 50 basis points later this month, but that is all it should be doing anyway," ," Mike O'Rourke from Jones Trading said in a note to clients. "It is time to stop watching the 'next move' and acknowledge it is the collective moves and the duration of the policy rate plateau that matter. The heavy lifting is done, and the objective is to achieve the target level (currently 3.75% to 4%) in the coming months without creating a policy error of over-tightening." The 7% decline in the S & P 500 in the last couple weeks has also brought stocks from overbought to veering toward oversold. "The sell-off is improving short-term risk/reward into conference season with the market approaching the low end of our near-term trading range of 3800-3900," Christopher Harvey from Wells Fargo said in a note to clients. I wrote earlier this week that the September conference season, where hundreds of corporations present their second half outlook at theme-oriented sell-side conferences, may be much more important this year than they usually are. That's because most companies have not provided updates since mid-to-late July, and a lot has changed since then. Harvey agreed, noting that Wall Street seems to eager to hear what companies have to say: "Conference season should help set the tone for the rest of 2022. Corporate roadshows and conference attendance does not appear to be tailing off, which is perhaps a small positive," he said. At least stocks have gotten cheaper. The market multiple, or P/E ratio, is a critical component in determining the value of the stock market. It's what investors are willing to pay for a future stream of dividends and earnings. Historically, it has traded between 15-17 times forward earnings estimates. When stocks were at new highs in January, it was a pricey 21, then plunged to roughly 16 during the June lows, went back up to a little over 18 during the July-August rally, and is now back to 17. That could change, and the immediate catalyst may be the upcoming conference season. "I anticipate conference season will result in a modest re-rating of overall earnings," Harvey said. | 2022-09-03T05:13:47Z | www.cnbc.com | 'Goldilocks' jobs report gives market a slight boost, but traders may be getting ahead of themselves | https://www.cnbc.com/2022/09/02/goldilocks-jobs-report-gives-market-a-slight-boost-but-traders-may-be-getting-ahead-of-themselves.html | https://www.cnbc.com/2022/09/02/goldilocks-jobs-report-gives-market-a-slight-boost-but-traders-may-be-getting-ahead-of-themselves.html |
Published Fri, Sep 2 202211:25 AM EDT Updated Fri, Sep 2 20224:15 PM EDT
Student-loan debt activists rally outside the White House a day after President Biden announced a plan that would cancel $10,000 in student loan debt for those making less than $125,000 a year in Washington, D.C., on Aug. 25, 2022. | 2022-09-03T05:15:53Z | www.cnbc.com | Student loan forgiveness could cost $2,500 per taxpayer, research finds | https://www.cnbc.com/2022/09/02/student-loan-forgiveness-could-cost-2500-per-taxpayer-research-finds.html | https://www.cnbc.com/2022/09/02/student-loan-forgiveness-could-cost-2500-per-taxpayer-research-finds.html |
It's always nice when two companies we are invested in come together to develop innovative products that could one day change our daily lives. That's the type of news we were greeted with Friday morning after learning that Meta Platforms (META) and Qualcomm (QCOM) are teaming up to make custom chipsets that will be used for virtual reality (VR) products. The two companies announced a multi-year strategic agreement "to develop premium experiences that leverage custom Snapdragon XR platforms for the Meta Quest platform." The companies had previously worked together for over seven years developing VR products, most recently with Meta Quest 2, and this agreement "solidifies the mutual commitment to deliver multiple generations of premium devices and experiences powered by custom VR platforms in the years to come," according to press release . Financial details of the agreement not disclosed. We see this news as a nice win for Qualcomm given the huge bet Meta, formerly named Facebook, is making on virtual reality and the billions of dollars it is investing into buildout its metaverse, a digital world that Jim Cramer got to experience first-hand when he interviewed CEO Mark Zuckerberg back in June . Qualcomm's huge handset business, thanks to its growing partnership with Samsung, and emerging auto and internet-of-things businesses get most of the attention from shareholders, but its leadership in augmented reality (AR) should not be overlooked. In January, Qualcomm announced a collaboration with Microsoft (MSFT), another Club holding, to expand and accelerate its adoption of AR in both the consumer and enterprise sector. One project the two companies are working on together is the development of a custom AR that enables power-efficient, lightweight AR glasses. Speaking of autos, we are counting down the days to Qualcomm's Sept. 22 Auto Investor Day. As we wrote Thursday, the meeting is expected to be shaped around the company's Snapdragon Digital Chassis, an integrated set of open, cloud platforms that let drivers connect their cars, as well as its so-called One Technology Roadmap. We hope this is the event where Qualcomm finally starts getting respect on Wall Street for its fast-growing Auto business. One way we can tell that Auto will be a huge business for Qualcomm is through its backlog, which represents deals it won and should materialize into revenue in the future. At the end of the most recently reported quarter, Qualcomm's Automotive backlog stood at more than $19 billion, representing an increase of $3 billion from the prior quarter. With a price-to-earnings multiple of about 10x, we think QCOM trades too much like a handset chip marker and not enough like the diversified semiconductor company it has turned into. Lastly, we want to touch back on the important story that had a significant impact on semiconductors Thursday. The entire semiconductor was hit after Nvidia (NVDA) disclosed the U.S. government restricted the sale of high-performance GPUs that specialize in artificial intelligence to select Chinese customers over risks that they may be used by the Chinese military. We don't know yet if the U.S. restrictions will extend to other types of chips. It's too hard to predict right now, but we believe it's prudent to be cautious about any company that sells products related to national security as escalating tensions between the two countries are a real worry. But for now, we think the government restrictions will not have a material impact on Qualcomm's business. Advanced Micro Devices (AMD) has already said the restrictions won't be material to its business. One day after a rough session, chips stocks were stabilizing Friday. (Jim Cramer's Charitable Trust is long QCOM, META, MSFT, NVDA and AMD. 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. | 2022-09-03T05:16:40Z | www.cnbc.com | Virtual reality partnership with Meta is another way Qualcomm is broadening beyond smartphone chips | https://www.cnbc.com/2022/09/02/virtual-reality-partnership-with-meta-is-another-way-qualcomm-is-broadening-beyond-smartphone-chips.html | https://www.cnbc.com/2022/09/02/virtual-reality-partnership-with-meta-is-another-way-qualcomm-is-broadening-beyond-smartphone-chips.html |
3 ways to avoid mindless spending so you can start buying things that actually matter to you
Maia Monell, Co-Founder of the Nav.it app, offers her best tips for value-based spending.
Jelena Lalic | Istock | Getty Images
Finding ways to maximize what you can do with your income is an important part of money management. While it's easy to assume that involves sticking to strict budgets, improving your finances doesn't necessarily mean you have to stop buying non-necessities altogether — you just have to make sure you're avoiding frivolous, mindless spending so you have room to make purchases you genuinely love and care about.
Of course, not every single purchase has to have meaning behind it, but it can be easy to fall into the trap of making impulse buys for instant gratification that you won't even care about after a short period of time. All that money can really add up and before you know it, you won't have enough cash left over for the experiences and things you truly value.
"Spending based on your values means making choices that reflect what is important to you," says Maia Monell, co-founder and chief growth officer of the Nav.it app. "It means investing in the things that will bring you joy, satisfaction, a sense of accomplishment, and purpose."
Keep in mind that spending money based on your values can look different for everyone. For one person, making a satisfying purchase can mean splurging on higher-quality ingredients because cooking a good meal is the favorite part of their day. For someone else, it could mean paying a premium for sustainable fashion items because they like supporting businesses aimed at helping the environment.
The return on investment of a value-based purchase isn't always tangible — sometimes, it's more about gaining knowledge, having a stronger sense of community or getting to use your creativity. It's important to draw the distinction between the things you love buying and the things that just eat up your cash flow.
"Spending money on things you don't care about might mean you will miss out on opportunities and experiences to invest in the things that truly matter to you," Monell explains.
Below, Select shares some of Monell's best tips for making sure you're spending money with your personal values in mind.
1. Have an idea of what your values are
"The first step is to get clear on what matters most to you," Monell says. "This could be anything from family to travel to financial security. Once you know your values, you can start making choices that reflect them."
For instance, if being with family brings you the most joy, the amount you're spending on family activities might be higher than what you're spending in other areas such as shopping or self-care. And if health and fitness are the most important parts of your day-to-day, it makes sense for you to spend more money on higher-quality grocery store items or exercise expenses, such as a gym membership or personal training.
Your values might also change depending on the stage of life you're in. Personally, when I lived at home with my parents, I got the most joy out of spending money to travel and dine with friends. Now that I have my own apartment, the purchases that make me happiest are usually centered around home decor and anything aimed at making my space feel more comfortable.
It makes sense when you consider that I spend the majority of my day in my apartment and therefore want to improve the place I work, study, eat and relax in — it's important to me that the things I buy will improve my experience at home.
If you want to get clear on what your values are, a good starting point is to think about the kinds of experiences you love, the types of small pleasures you enjoy and the ways you seek to improve your day-to-day life.
It can also be helpful to track your progress and make sure you're actually sticking to the ground rules you set for yourself. The best way to do that is to create a budget or spending plan so you know exactly where your money is going.
"Once you have a budget, start tracking your actual spending to see how well you stick to it," Monell says. "This can be done through a simple spreadsheet or even a notebook. Keep an eye on your progress so you can make changes as needed."
Keeping track also makes it easier for you to notice if you're still spending too much money in areas that aren't meaningful to you. That way, you can take steps to reduce or cut those expenses altogether.
Select ranked the Mint app as the best free budgeting app since it connects easily to your bank accounts and credit cards and automatically categorizes your transactions for you, though users can also manually modify those categories as needed. YNAB (You Need A Budget) is another solid option for those who want to make sure they're giving every single dollar a job so you an ensure you're making the most out of every paycheck.
3. Allow yourself to be flexible
Whenever you're making changes to the way you manage your money, remember to give yourself some grace since making sustainable changes takes plenty of patience and practicality. There may be times when you're tempted to revert back to previous spending habits or you might find yourself in certain social situations where standing your ground is easier said than done.
"Remember that your spending should align with your values, but that doesn't mean it has to be perfect," Monell says. "If you make a purchase that doesn't quite fit your budget, don't beat yourself up over it. Just try to reflect on why you made that decision and if and how you can improve next time. Give yourself permission to be imperfect and commend yourself for striving for improvement."
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4 ways to get the most value from your credit card in 2022 | 2022-09-03T05:17:24Z | www.cnbc.com | 3 Tips for Spending Based on Your Values | https://www.cnbc.com/select/tips-for-spending-based-on-values/ | https://www.cnbc.com/select/tips-for-spending-based-on-values/ |
Are you planning to switch jobs soon? Here are 6 tips to help you prepare financially
Submitting your two weeks' notice is just the tip of the iceberg when it comes to changing jobs.
Updated Fri, Sep 2 2022
While changing jobs can be exciting — a new role is an opportunity to advance your skills, be part of a new company and potentially earn more money — as with any other major life change, you'll want to think about how to prepare for the switch financially.
Below, Select offers some tips to follow if you need to prep your finances for an upcoming job change.
Make sure you have an emergency fund set up
An emergency fund is essentially a lump sum of savings that's reserved for unexpected expenses — having to pay your rent in the event of a job loss, for instance, or cover surprise medical bills.
While some folks may want to leave a job and transition straight into the next one with no downtime, if you plan on giving yourself a few weeks and take a break before working for your next employer, an emergency fund can help you pay for your necessities in the absence of your usual paycheck.
The longer your downtime is, the more you'll need to plan for some of the more invisible costs of quitting your job, such as paying for your own health insurance or childcare if your previous employer had offered either of those as an included benefit.
If you haven't already considered building an emergency fund, now is the time to do so. Keep it stashed in a high-yield savings account so you can earn higher amounts of interest on your balance — granted, you likely won't earn hundreds of dollars in interest each month, but it's still more than the pennies you'd earn by sticking with a traditional savings account.
Select ranked the Marcus by Goldman Sachs High Yield Online Savings account as best for those looking for a no-fee option. There's no minimum deposit needed to open the account and users can start earning interest with just a $1 minimum balance in their account. As of this writing, the account awards a respectable 1.70% APY.
Save up for relocation expenses
If your new job requires you to move to a new city and you weren't able to negotiate a relocation stipend that would cover all of your moving costs, it's time to start saving. Relocating to a new city can cost thousands of dollars when you consider the fact that you'll need to put down a deposit for your new apartment, pay the first month's rent, and cover the cost of movers and travel to your new city.
While every little bit you save can help, if you still need help paying to relocate, consider taking out a personal loan. These can provide a source of flexible funding since they can be used for just about anything (including moving) and the interest rates are typically lower than those of credit cards. Select ranked LightStream Personal Loans as the best personal loan lender overall because of its low interest rates and flexible terms. If you need funding as soon as the next day, though, Select recommends going with Discover Personal Loans.
See if any of your unused PTO gets paid out
Some companies have an exit policy that compensates full-time employees for any vacation days they didn't take that year, which could provide a nice windfall of cash to pad your emergency savings fund or cover any relocation costs if you have to move to a different city for your new job.
While snagging some extra money can be exciting, make sure to create a plan for it that meshes with your financial goals. If you aren't sure if you'll be paid for any unused PTO time, it never hurts to double-check with your HR department just in case. In some states, such as California and Colorado, this is a requirement.
Be prepared to pay back any extra compensation
If you received a sign-on bonus or relocation bonus when you accepted your current position, double-check the fine print before you hand in your two weeks' notice, as you may have to pay it back.
According to the popular resource website Ask A Manager, if you received advance compensation from your employer, such as a sign-on bonus, and it had a repayment agreement that mentions a specified timeframe, you essentially agreed to stay at the company for that timeframe — otherwise, you'll have to pay that money back.
For example, let's say you accept a job that's giving you a relocation bonus so you can move to the city where your new employer is based. If the payback agreement states you must work there for at least one year but you try to leave before your year is up, you'll have to pay back that bonus immediately.
These kinds of perks are usually referred to as "golden handcuffs" because while it's nice to receive extra compensation, they often come with strings attached to encourage you to stay at your company longer. If you're not careful, though, you can end up having to dig into your savings to repay a benefit if you choose to leave the company early. That's not to say that you have no choice but to stay at your current company, but you should at least make sure you have the money on hand to repay what's necessary if you have to.
Besides a sign-on bonus or relocation bonus, another form of compensation this can apply to is tuition reimbursement or assistance. Also keep in mind that while you may not have received a separate agreement to sign in cases like these, the guidelines may be outlined in your employee handbook.
If you received these types of compensation but aren't sure if you're subject to these types of stipulations, double-check with your benefits provider, especially if you can't find any mention of this in your offer letter or employee handbook.
Save login information for HSA and 401(k) accounts
If you contributed money to any employer-sponsored accounts, such as a 401(k) or Health Savings Account, make sure you update your login information and keep it in a safe place before you leave. That's because you'll want to have access to these accounts after you leave the company so you can make rollovers and, eventually, withdrawals.
A 2021 study from Capitalize, a platform that specializes in helping people save for retirement, showed that Americans left behind a total of $1.35 trillion worth of 401(k) accounts they forgot about after they switched jobs.
Even if you accidentally leave your balance behind, you'll need to find another way to make up for it or simply make other adjustments so you can still reach your desired retirement goals. That could mean staying in the workforce longer than you'd like to, taking on side hustles or downsizing your lifestyle expectations later on in retirement.
Adjust your budget to accommodate your new salary
If you've already secured your new job and accepted the salary offer, it might be a good time to start figuring out what your new level of income means in relation to your monthly expenses. For instance, if you're switching industries and will be taking a slightly lower salary because you have less experience, you should take a look at which monthly expenses are still doable and which ones aren't.
On the other hand, if you're accepting a new position that pays significantly more, it's a good idea to figure out how you can use that increase in cash flow to save up or invest more — or to finally pay for things you needed that you couldn't previously afford. For example, maybe you had to quit your favorite hobby because you could no longer afford the supplies, or you previously avoided medical treatments that your insurance wouldn't cover but you can afford now. Whatever your case, you'll definitely want to plan for these kinds of instances.
Start by getting a clearer picture of what your current spending habits are like, if you haven't done so already. Using a budgeting app such as Mint or YNAB (You Need A Budget) can help you to be more conscious of your expenses. That way, you'll be one step closer to figuring out what your new salary can accommodate.
While switching jobs can be extremely exciting — especially if you're going through it for the first time — it's important to do your financial due diligence so you don't get hit with any surprises.
For starters, it's prudent to save up for any expenses that may be associated with starting your new job, such as relocating to a new city. You'll also want to make sure you won't be on the hook for repaying any advanced compensation you might have received. Most importantly, don't forget to keep your 401(k) account information safe so you don't accidentally leave your balance behind.
Switching companies and don't know what to do with your 401(k)? Here are your options
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3 easy money hacks that make living on your own more fun and affordable | 2022-09-03T05:17:31Z | www.cnbc.com | 6 Tips To Help You Prepare Financially For Changing Jobs | https://www.cnbc.com/select/tips-to-help-you-prepare-financially-for-changing-jobs/ | https://www.cnbc.com/select/tips-to-help-you-prepare-financially-for-changing-jobs/ |
Published Sat, Sep 3 202211:18 AM EDT Updated 10 Min Ago
NASA's Space Launch System (SLS) rocket with the Orion spacecraft aboard is seen atop the mobile launcher at Launch 39B at NASA's Kennedy Space Center in Florida on Aug. 26, 2022.
The space agency is working toward the debut of its Space Launch System (SLS) rocket and Orion capsule, for what would be a more than month-long journey around the moon.
It was unclear whether NASA will be able to make another attempt on its next opportunities for a launch on Monday or Tuesday. If NASA decides not to try again in the coming days, the agency would likely roll the 32-story tall rocket back to the Vehicle Assembly Building at Kennedy Space Center in Florida, which would be a delay of weeks or more. | 2022-09-03T16:54:23Z | www.cnbc.com | NASA delays Artemis I moon rocket launch | https://www.cnbc.com/2022/09/03/nasa-delays-artemis-i-moon-rocket-launch.html | https://www.cnbc.com/2022/09/03/nasa-delays-artemis-i-moon-rocket-launch.html |
It comes ahead of a meeting of the European Central Bank Thursday, when economists expect it to raise its benchmark deposit rate from 0 to 0.5% or 0.75% against a backdrop of concern over Europe's ability to meet its energy needs this winter and the potential for a hit to growth. | 2022-09-05T07:57:51Z | www.cnbc.com | Euro slides below $0.99 after Russia halts gas supplies to Europe | https://www.cnbc.com/2022/09/05/euro-slides-below-0point99-after-russia-halts-gas-supplies.html | https://www.cnbc.com/2022/09/05/euro-slides-below-0point99-after-russia-halts-gas-supplies.html |
Some of the measures that European governments have taken to keep electricity costs down can be described as a "Ponzi scheme," said Dan Brouillette, who served as energy secretary under the Trump administration.
"One of the easiest policy levers if you will, is that you can pass a bill, appropriate money and give money to citizens to pay their electricity bills," Brouilette told CNBC's Hadley Gamble on the sidelines of the Gastech conference in Milan on Monday.
Watch CNBC's full interview with former U.S. Energy Secretary Dan Brouillette
Brouillette warned of the "inflationary impact" of such measures should governments employ such policies to tackle the spike in prices.
When asked about whether such measures resemble a Ponzi scheme, Brouillette replied, "You could describe it that way. There's no question about that."
The EU countries' energy ministers will meet on Friday to discuss methods to curb surging gas prices.
"If we can produce more, create more infrastructure development in the United States, in Europe — that is the ultimate answer to the questions." He said it's important that United States return to pre-pandemic levels of production.
Brouillette said such a move is "impossible," because the oil market is in "backwardation." Backwardation is when the current price of a commodity is trading higher than its futures price. That, according to him, means that producers have more incentive to put their product in the marketplace. He added that publicly traded companies that are in America have fiduciary responsibilities to their shareholders. | 2022-09-05T14:08:34Z | www.cnbc.com | Efforts to keep energy costs down are like a Ponzi scheme, says Brouillette | https://www.cnbc.com/2022/09/05/-efforts-to-keep-energy-costs-down-are-like-a-ponzi-scheme-says-brouillette.html | https://www.cnbc.com/2022/09/05/-efforts-to-keep-energy-costs-down-are-like-a-ponzi-scheme-says-brouillette.html |
"When I was president, I stood up to China and they listened. When I was president, we had the strongest military since Ronald Regan. When I was president, I destroyed the caliphate. When I was president, we had conservative judges, not liberal judges. He has a story to tell," said Graham. | 2022-09-05T14:08:52Z | www.cnbc.com | Trump 2024 Presidential bid a great political comeback says Sen Graham | https://www.cnbc.com/2022/09/05/trump-2024-presidential-bid-a-great-political-comeback-says-sen-graham.html | https://www.cnbc.com/2022/09/05/trump-2024-presidential-bid-a-great-political-comeback-says-sen-graham.html |
Published Mon, Sep 5 20225:00 PM EDT
A CVS logo is displayed at one of their stores near Bloomsburg.
CVS said it will pay $30.50 a share in cash for Signify, an acquisition that would build on its growing health-care services. Signify provides technology and analytics to help with in-home patient care.
The deal comes as competitors from Amazon to Walgreens are moving further into the health-care sector. In July, Amazon announced it was acquiring primary-care provider One Medical for about $3.9 billion.
Last month, CVS revealed plans to acquire or take a stake in a primary-care company by year's end.
The Signify deal follows other acquisitions and shifts into primary health care. CVS previously acquired insurer Aetna and pharmacy benefits manager Caremark, and customers can get vaccines or urgent care at MinuteClinic outposts inside of its stores. It recently introduced therapy for mental health at some stores.
CVS Health and Signify Health will hold an analyst and investor call at 8:30 a.m. ET on Tuesday to discuss the transaction. | 2022-09-06T00:37:58Z | www.cnbc.com | CVS to buy home health giant Signify Health for about $8 billion | https://www.cnbc.com/2022/09/05/cvs-to-buy-home-health-giant-signify-health-for-about-8-billion.html | https://www.cnbc.com/2022/09/05/cvs-to-buy-home-health-giant-signify-health-for-about-8-billion.html |
An aerial view shows Isar nuclear power plant, which includes the Isar 2 reactor, on August 14, 2022 in Essenbach, Germany. Isar 2 is one of the last three still operating nuclear power plants in Germany and all three were scheduled to shut down by the end of this year. However, due to the disruption in energy imports from Russia, politicians and other actors are debating extending the operational life of the plants. Some are advocating an extension until the middle of 2023, while others are pushing for longer. Approximately 80% of people polled among the general public support some kind of extension.
Even as Germany opts to give itself the option to turn to the two southern nuclear power plants, Germany is not changing its longer-term goal to shut down all nuclear power in the country. The announcement is very much a stop-gap for the country, similar to the proposal California is currently pursuing to keep its last operating nuclear power reactor, Diablo Canyon online. | 2022-09-06T20:21:19Z | www.cnbc.com | Germany to keep two nuclear plants available as a backup, burn coal | https://www.cnbc.com/2022/09/06/germany-to-keep-two-nuclear-plants-available-as-a-backup-burn-coal-.html | https://www.cnbc.com/2022/09/06/germany-to-keep-two-nuclear-plants-available-as-a-backup-burn-coal-.html |
Bitcoin traded below $19,000 on Wednesday morning, hitting its lowest level since June following a drop in stock markets globally and the continued strength of the U.S. dollar.
Bitcoin was trading around $18,812.36 at 03:50 a.m. ET, down more than 5%, according to CoinDesk. Ether, which has far outpaced bitcoin's gains in recent months, was down more than 8% at $1,518.59.
This 'crypto winter' is different from the last. Here's why
Ether is the native cryptocurrency on the Ethereum network. Ethereum is planning a huge upgrade this month — known as the merge — that proponents say will make the network more efficient. | 2022-09-07T09:14:14Z | www.cnbc.com | Bitcoin (BTC) price falls below $19,000 as crypto market drops below $1 trillion | https://www.cnbc.com/2022/09/07/bitcoin-btc-price-falls-as-cryptocurrency-market-drops-below-1-trillion-.html | https://www.cnbc.com/2022/09/07/bitcoin-btc-price-falls-as-cryptocurrency-market-drops-below-1-trillion-.html |
Putin claims the U.S. wants to preserve global 'dictatorship' and is sacrificing Europe
Published Wed, Sep 7 20226:02 AM EDT Updated 4 Min Ago
Putin said the current global geopolitical crisis had been precipitated by the U.S.'s "slipping dominance" in global politics and economics.
Putin slammed the West repeatedly during a speech to business leaders gathered in far eastern Russia, saying sanctions imposed on Moscow for its invasion of Ukraine were a "danger" to the whole world and left Europe worse off.
Russia is widely believed to have been taken aback by the West's assertive and unified response against its unprovoked invasion of Ukraine, which began back in February, with an ever-increasing number of sanctions being leveled at the Russian economy and personnel and businesses linked to the Kremlin.
Unsurprisingly, Moscow has taken a dim view of sanctions and has sought to circumnavigate the damaging economic consequences of these by turning to its allies in Asia to sell its oil. It has now also halted all gas supplies to Europe via the Nord Stream 1 gas pipeline, saying sanctions prevent the pipeline from being repaired and working properly, a claim rejected by Siemens Energy which has supplied and maintained equipment for the pipeline.
Meanwhile, in Ukraine, the war continues to cause untold misery to civilians and death and destruction.
Millions of Ukrainians have been displaced from the country during the war, with Russia accused of multiple war crimes and of repeatedly targeting civilian infrastructure, which it denies doing despite an overwhelming and mounting amount of evidence.
U.S. President Joe Biden has called Putin a "war criminal" but on Tuesday refused to designate Russia as a state sponsor of terrorism, a label Ukraine has called for. The EU has said Russia is "weaponizing" energy supplies to blackmail it into sanctions relief.
Russia's president, who has been largely ostracized by developed Western countries following Russia's unprovoked invasion of Ukraine, said he believed the current situation had been precipitated by the U.S.'s "slipping dominance" in global politics and economics.
Describing the Asia-Pacific region as a "magnet" for human resources, capital and production capacities, Putin said that "despite that, Western countries are trying to maintain the old world order that only benefitted them."
On Tuesday, Putin announced that China will pay for gas from Russia's state-owned gas company Gazprom in both their currencies, the ruble and Chinese yuan, signaling a further attempt by both countries to sideline the dollar.
Gross domestic product will fall by 7% in the third quarter after contracting by 4.3% in the second quarter, Reuters reported last month citing a report from the central bank. The bank forecast that the economy will start recovering in the second half of 2023. Inflation stood at 15.1% in July, above the EU rate of 9.8% in the same month.
Speaking to business leaders Wednesday, Putin said Russia would post a budget surplus this year and that GDP would fall by "around 2% or a little more." | 2022-09-07T10:45:49Z | www.cnbc.com | Putin: U.S. aims to preserve 'dictatorship' while Europe is sacrificed | https://www.cnbc.com/2022/09/07/putin-us-aims-to-preserve-dictatorship-while-europe-is-sacrificed.html | https://www.cnbc.com/2022/09/07/putin-us-aims-to-preserve-dictatorship-while-europe-is-sacrificed.html |
Published Wed, Sep 7 202210:24 AM EDT Updated 13 Min Ago
Sterling fell to $1.1407 in afternoon trade in London — a level not seen in 37 years — as investors responded to the U.K.'s darkening economic landscape with a new prime minister at the helm.
British Prime Minister Liz Truss was officially appointed Tuesday after succeeding Boris Johnson in a closely fought leadership contest.
She inherits an economy in the throes of its worst cost-of-living crisis in a generation, with inflation hitting 10.1% in July.
U.K. inflation is running at the fastest pace since the early 1980s.
The British pound on Wednesday plummeted to its lowest level against the U.S. dollar since 1985.
It was last seen trading down 0.4% at $1.1452.
The pound dropped to $1.1444 in the hours following her victory Monday, but it has since slipped lower as traders comprehend the fallout from her appointment.
The last time sterling fell to $1.14 was briefly during the Covid-19 pandemic low in March 2020 and the Brexit result in 2016. However, the level of $1.1407 has not been seen since 1985, under Margaret Thatcher's government. | 2022-09-07T15:21:43Z | www.cnbc.com | British pound falls to its lowest level against the dollar since 1985 | https://www.cnbc.com/2022/09/07/british-pound-falls-to-its-lowest-level-against-the-dollar-since-1985.html | https://www.cnbc.com/2022/09/07/british-pound-falls-to-its-lowest-level-against-the-dollar-since-1985.html |
SAN RAFAEL, CALIFORNIA - DECEMBER 08: Customers enter a GameStop store on December 08, 2021 in San Rafael, California. Video game retailer GameStop will report third quarter earnings today after the closing bell. (Photo by Justin Sullivan/Getty Images)
In the second fiscal quarter ended July 30, the video game retailer's total sales dropped to $1.14 billion from $1.18 billion in the year-ago period. Its losses widened to $108.7 million, or 36 cents per share, compared with a loss of $61.6 million, or 21 cents, a year prior.
GameStop's results cannot be compared with estimates because too few analysts cover the company.
The retailer has spent significantly on new initiatives, including NFTs. It had $908.9 million in cash and cash equivalents at the end of the quarter — a little more than half of what it had at the end of the year-ago period.
The company did not provide an outlook. It hasn't provided guidance since the start of the pandemic.
The legacy brick-and-mortar video game retailer is trying to adapt its business to a digital world. It's gotten new leadership, including board chair Ryan Cohen, the founder of Chewy and former activist investor for Bed Bath & Beyond, and its CEO Matt Furlong, an Amazon veteran.
But GameStop has struggled to drive profits, leading it to trim costs and shake up leadership. Last month, the company fired its chief financial officer, Mike Recupero, and laid off employees across departments. Accounting chief Diana Jajeh stepped in as the company's new CFO.
The company's expenses decreased by 14% from the first quarter of the year, reflecting those layoffs.
GameStop has looked to new ways to make money, including nonfungible tokens. It launched an NFT marketplace in July, which is open to the public for beta testing. It allows users to connect their own digital asset wallets, including the recently launched GameStop Wallet, so they can buy, sell and trade NFTs for virtual goods.
As overall sales fell, the retailer pointed to growth of some newer businesses. Sales attributable to collectibles rose from $177.2 million in the prior year's second quarter to $223.2 million in the most recent one. | 2022-09-07T21:23:36Z | www.cnbc.com | GameStop (GME) Q2 2022 earnings | https://www.cnbc.com/2022/09/07/gamestop-gme-q2-2022-earnings.html | https://www.cnbc.com/2022/09/07/gamestop-gme-q2-2022-earnings.html |
Aerial photo taken on Aug 7, 2022 shows the loading and unloading of import and export goods at the container terminal of Lianyungang Port in East China's Jiangsu Province. China's exports grew 7.1% in August year-on-year, while imports rose only 0.3%, both missing expectations, customs data showed on Wednesday.
It's no surprise that China is seeing weaker import numbers, says Goldman Sachs | 2022-09-08T02:04:38Z | www.cnbc.com | Shipping rates are still falling, in another sign that a global recession may be coming | https://www.cnbc.com/2022/09/08/shipping-rates-are-still-falling-in-another-sign-that-a-global-recession-may-be-coming.html | https://www.cnbc.com/2022/09/08/shipping-rates-are-still-falling-in-another-sign-that-a-global-recession-may-be-coming.html |
Queen Elizabeth II's doctors are concerned for her health, Buckingham Palace says
It added that the queen, 96, remains comfortable and at Balmoral, the queen's royal residence in Scotland.
Britain's new Prime Minister Liz Truss said her thoughts were with Her Majesty and her family.
Doctors are concerned for the health of Britain's Queen Elizabeth II and have advised that she remains under medical supervision, Buckingham Palace said Thursday.
Immediate family members have been informed and are currently traveling to Balmoral Castle, the queen's royal residence in Scotland.
Prince Charles and his wife, Camilla, the Duchess of Cornwall, have already arrived and Prince William, the Duke of Cambridge, is on his way.
The queen, who is the world's longest-serving monarch, has been said to be suffering from deteriorating health for the past several months, with doctors citing ongoing "episodic mobility problems."
She spent a night in hospital last October and has been forced to cut back on her public engagements since then.
Britain's new Prime Minister Liz Truss, who met with the queen Tuesday, said her thoughts were with her and her family.
Keir Starmer, the leader of Britain's opposition Labour Party, said he was deeply concerned about the news.
Scotland's First Minister Nicola Sturgeon said she was "profoundly concerned" and Wales' First Minister Mark Drakeford sent his best wishes on behalf of the people of Wales.
Elizabeth has been queen of Britain and more than a dozen other countries since 1952. Earlier this year she celebrated her 70th year on the throne. | 2022-09-08T12:45:06Z | www.cnbc.com | Queen Elizabeth II's doctors are concerned for her health, Buckingham Palace says | https://www.cnbc.com/2022/09/08/doctors-concerned-for-queen-elizabeths-health-buckingham-palace-says.html | https://www.cnbc.com/2022/09/08/doctors-concerned-for-queen-elizabeths-health-buckingham-palace-says.html |
At the CNBC Investing Club, we strive to help members manage their own portfolios by showing them how we do it. Over decades of Wall Street experience managing money at Goldman Sachs and my own hedge fund as well as through financial journalism and education, I've put together a Guide to Investing. It consists of 25 principles we follow in managing the stocks in my Charitable Trust, the portfolio we use for the Club. They've worked for me over my career in bull and bear markets, and I hope you find them useful in your investment journey. We've broken up the principles into groupings of five for easy navigation. Principles 1-5 Principles 6-10 Principles 11-15 Principles 16-20 Principles 21-25 1. Bulls and bears make money; pigs get slaughtered This has got to be one of my most favorite mantras when it comes to investing and one I share constantly when people ask what to do with a big winner. We are as upfront as we can be with our mistakes and one prime example to explain this rule can be pulled from our own actions in recent months on Nvidia (NVDA). We love this chipmaker — and over the long term, we think its best days are ahead. However, we must acknowledge that we were pigs here and it has hurt us. In fact, when asked at the beginning of December 2021 why we didn’t trim the stock along with our position in Advanced Micro Devices (AMD), we admitted to being piggish “because this may be a $10 trillion stock” on day. It may still be a $10 trillion stock in the future, but the moment we acknowledged our piggishness, we should have sold some. Why? Because had we listened to that discipline, we would have realized a price of $320 per share and been in an even better position to repurchase shares as they proceeded to take a greater than 30% hit over the following few months. We were bulls that became pigs and it cost us. Of course, it is never good to be a pig, but it is even more dangerous to be a piggish bear than a piggish bull. A piggish bull can in an extreme instance lose 100% of their investment in a position, but a piggish bear can lose a whole lot more. Consider the poor saps that pressed the bet against GameStop (GME) at a pre-stock-split $4 during the Covid pandemic. Here, you have a group of investors that were short a $4 stock, playing for bankruptcy. Not only did they get short, in some instances they threw leveraged instruments on top, upping the risk in hopes of upping the reward. Rather than take the win, they had to see it crushed, they wanted to see it go to zero. Well, that piggishness cost them not only their money but their reputation. A group of retail investors banded together, bought up the shares, and forced a legendary short squeeze that saw shares explode from about $4 to $483 at the high (again, that was before GME's 4-for-1 stock split in July ). The bottom line: In any other walk of life outside of investing, there comes a price for something we are not willing to pay and where we would instead look to sell. When it comes to stocks, investors often lose that sensitivity to price and it is a recipe for disaster. So know what you own, what you are willing to pay, and at what price it makes more sense to be a seller than a buyer. 2. It’s okay to pay the taxes Unless your wish is to die with the stock and leave that money to someone else hoping for a stepped up basis (a policy that could change at any point before your eventual demise), we have got some news for you: Those taxes are getting paid eventually. Unless you turn that win into a loss, then congrats (I guess?), no taxes for you. Whether it’s long-term or short-term taxes, you are not going to get every dollar out of the trade. The government wants their cut (so badly that some of those in power are even looking into taxing unrealized gains). Every dollar you make, the government is going to take a piece. But every dollar higher does mean more money in your pocket, it may be 60 cents more or 80 cents more but every dollar higher that you can sell means more money in your pocket at the end of the day. In other words, don’t let a tax hit prevent you from realizing as much as possible. The reality is, you want to buy stocks that you believe will go higher, and sell those you believe will go lower. That’s not to say you shouldn’t take advantage of methods to avoid (not evade, that’s illegal) taxes. Things like tax-deferred accounts or figuring out how to hedge and take advantage of lower rates. But these are asset location issues (IRAs, 401Ks, and so on) and advanced hedging strategies (like netting out the position to move the sale from a short-term hold to a long-term one) that do not change that fact that when it’s time to sell, it’s time to sell regardless of the tax implications. 3. Don’t buy all at once; arrogance is a sin Accept that you will never be correct 100% of the time and use that knowledge to your advantage. If you think you can pick the bottom consistently, without luck, well you are wrong and arrogant. I used to be arrogant. As I told readers in my book “Real Money,” I thought I had to buy once and go big to show everyone just how right I was. “Put me up on 50,000 CAT!,” eager to show everyone how right I would be on the stock of Caterpillar (CAT). I’ve learned since then that getting the best price — and thereby maximizing my returns and limiting my losses — is a whole lot more rewarding than trying to show everyone else how right I was. They don’t care anyway. These days, if I want 50,000 shares, I’m buying 5,000 at a time — as we do for the Charitable Trust. We may speed up the buys if I we see better prices or average them out over time if we don’t, allowing time for the earnings to grow and the stock to become cheaper. We are never buying an entire position in one fell swoop. When it comes to putting on a position, the goal is not to get the order done, the goal is to get the order done right. Sometimes you do nail the bottom, but we call that a high-quality problem: We will have made a little less money than we had hoped. But we still made money, so we can’t beat ourselves up too much. 4. Look for broken stocks, not broken companies It is important to understand that while stocks represent ownership interest in a company, a stock and a company are not the same and you must be able to differentiate the two. There is no level too low to sell a broken company. Investors buy companies that either directly pay them to own it via buybacks and dividends, like Apple (AAPL), or because they think the price will go higher as fundamentals (and therefore the financial outlook) improves. If you don’t have one of those two factors working for you, it’s because the company is broken. Nobody else is going to take it off your hands at a better price than you paid because the outlook isn’t improving. In the long run, the stock price will follow the fundamentals so your only hope in this scenario of buying a broken company is to find a greater fool to take it off your hands. That’s not investing, it’s gambling. On the other hand, if you find a great company with a broken stock, the price will eventually follow the strong fundamentals. This is exactly the kind of an opportunity every investor is looking for, one in which the stock is not accurately reflecting the underlying fundamentals. Your job is to get the position before everyone else figures it out. This is also why a shopping list is so important. You must do the homework ahead of time so that when the next correction comes — and it always does — you will know exactly which names to target as the stocks of great companies break down due to indiscriminate selling. 5. Diversification is the only free lunch Despite this being the only free lunch, nobody ever wants to diversify, they want 100% of the next Tesla (TSLA) and forget that sometimes what you think is the next Tesla actually is the next Nikola (NKLA). Consider that in 1995, the 5 largest companies in the S & P 500 were (in order): General Motors (GM), Ford Motor (F), Exxon Mobil (XOM), Walmart (WMT) and AT & T (T). Since then, GM has filed for bankruptcy (though since bounced back) and only Walmart has managed to outperform the diversified S & P 500 index. Now there are many ways to think about diversification, but the primary way is to think about it across sectors. While there may be many reasons to like one stock over another in the same sector, when negativity strikes, nothing is safe. This is even more true now than in the past thanks to the prevalence of exchange-traded funds (ETFs). Large fund managers aren’t differentiating between the different stocks within the sector; all they know is that they want to be underweight or overweight a given sector and they are going to sell the entire basket until that desired sector weighting is achieved. 6. Buy and homework, not buy and hold One thing we can clearly take away from rule No. 5 is that over time, the facts change, the leaders become followers, the disruptors disrupt, consumer preferences change and so on. The facts change and so must our investment thesis. If you’re not doing the homework then how are you going to be sure that what you bought in the past is still what you own today? The two reasons people often don’t to do the homework is because they have either (wrongly) convinced themselves that if they hold long enough that ultimately all stocks make a comeback, or that since they don’t have the time to do it, nobody does. On the first reason, that’s just nonsense. Stocks represent ownership in a business. The notion that a business that is doing poorly will always improve and return to strength is just silly. If that was the case, there would be no bankruptcies or disruptors displacing leaders. Industry landscapes are always changing, businesses are living, breathing entities and without proper stewardship will fail. Ultimately, the stock will follow the fundamentals. On the second point, you may not have the time, but that’s what professionals are paid to do. Make the time. If you can’t keep up with the homework— be it because of time restrictions or a lack of understanding when it comes to financial statements – then you either need to own fewer stocks or hand it off to a professional. Tracking companies may not be your day job, but it is a pro's job. 7. No one ever made a dime by panicking Emotion, especially panic, has no place in investing. When we panic, we don’t think clearly. And when we aren’t thinking clearly, we make mistakes. If you associate the value of what you own with the price a stranger is willing to throw at it, it can be easy to panic when the bids come in low. However, just because someone offers you less for your house today than the price you paid yesterday doesn’t mean it is any less valuable. It may simply mean that the current bidders don’t see the value you see. When volatility strikes, you should focus more on the value of what you own than the price being put on it. By doing that and keeping a level head, you can make rational decisions and perhaps realize that there will be a better time to sell — either when things calm down or your investment thesis materializes and other buyers begin to see the value that you’ve seen all along. 8. Own the best of breed; it is worth it When it comes to investing, a real investor runs toward sales, not away. So when the price of an asset declines, you want to be ready and willing to buy more. That is a whole heck of a lot easier to do when you know that you own best of breed. There is an old saying, “I’m too poor to buy cheap.” Many understand that when it comes to goods, they know that if they buy quality they won’t have to buy again. That’s why you buy the $2,000 couch, so you don’t have to buy four of the $500 couches. Yet when it comes to stocks, many believe that cheaper is better. All they see is valuation or worse yet a low stock price and think that’s the better buy with no thought as to brand loyalty, sales resiliency, profitability, pricing power and so on. As The Oracle of Omaha Warren Buffett once said, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” When you own best of breed, you don’t need to spend every waking minute worrying about falling further behind – remember, if you’re not in best of breed, you are already behind — or if management is executing. Instead, you can take a higher-level view by focusing on industry dynamics, macroeconomic updates, geopolitical events and so forth. That’s because you know that while your investment may be out of favor, you have a management team that knows how to operate and a product or service that is best in class. When their industry comes back into favor, they will be where the money flows to first. Consider our recent position in Nucor (NUE), the best steel maker in the world. We recently exited the position and booked a phenomenal profit. However, once we got the position on and even in our decision to exit, we were able to focus more on the higher-level dynamics — industry pricing, geopolitical turmoil, fiscal spending, and monetary policy. That's because we owned the best and knew if any steelmaker was going to thrive given the backdrop, it would be Nucor, and it did. 9. 'He who defends everything, defends nothing,' or why discipline trumps conviction “He who defends everything, defends nothing.” — Frederick the Great Defending your stock entails putting your capital to work when the market goes against you. However, that’s not easy and in many cases simply not doable when the entire market turns against you. Capital is limited. You can’t afford to defend all of your stocks because you’ll stretch your dry powder too thin and won’t have made a meaningful impact to your cost basis anywhere. Instead, you should take an objective and unemotional look at your portfolio and acknowledge that some of those holdings that you bought during better times simply do not have what it takes to rally in the new environment. They don't fit the "profile" of what investors are now favoring. These past few years provide a perfect example. In 2020 and 2021, when central bank monetary policy was loose and money was flowing, investors were willing to pay anything for the best story. They didn't care for earnings, they just wanted sales growth, a larger addressable market, or simply the promise of one day disrupting an industry. Jump to 2022: With heightened inflation fears at the forefront and geopolitical tensions rising, the opposite is true. Investors have no time for the promise of one day turning a profit and no interest in sky-high valuations. They want earnings now, cash flows today and valuations that accurately reflect the underlying fundamentals. That means that no matter how beaten down that high-flying price-to-sales stock may have gotten, it doesn't have what it takes to rally in today's market. That pre-revenue genomics play that did so well in 2020 simply is not going to reverse course in this environment. That means that you can't waste your ammo defending it. Even if you do decide to own stock in a sector that is out of favor, as tech is now, you can't buy the entire cohort. Rather, you should focus on the best-of-breed players, the ones that should they continue to sell off, you'll add to your position — not regret defending in the first place. 10. The fundamentals must be good in takeovers Given how incredibly lucrative it can be to own a stock that receives a takeover bid, speculators often look to buy a basket of stocks that they wouldn’t even bother to own were the focus on fundamentals. They think that if they throw the net wide enough, eventually one or some will get taken out. The problem with this thinking: Companies putting an offer on the table aren’t dumb. They aren’t going to pay a good price for a crummy company; they would rather pay a fair price, maybe even a bit more for a strong company with a bright future than bail out a bad one and work to turn it around. When you buy the shares of strong companies, you don’t need a bailout. The company itself will provide — and should an offer materialize, great. However, if you buy a company on fundamentals and then those fundamentals turn out to not be as strong as you thought, don’t convince yourself that some other company is coming to your rescue. The money tied up in that investment would be better allocated to a fundamentally sound one. 11. Don’t own too many stocks One hour of research on each stock per week. That’s the rule of thumb on keeping up with the homework. If you can’t manage that then you own too many stocks. Back in my hedge fund days, I would maniacally review the prior day’s losing trades — usually between the hours of 4 a.m. and 7 a.m. Ultimately, I realized that while there may be many reasons for a trade to not work out, having too many positions on at once was often a direct cause because I was stretched too thin. I lost money when my position sheet was the size of a textbook. But when it was a single page long, double spaced at that, that’s when the profits flowed in, and I was managing hundreds of millions of dollars. It doesn’t matter if you are a home-gamer or a professional, anyone can be guilty of having too many names on their book. Bad fund managers have hundreds of positions on at once, with low conviction and only a surface level knowledge of each — assuming they have any idea what they own to begin with. Good managers, on the other hand, maintain a few positions, know them like the back of their hand, and as a result, have the kind of conviction you need to buy on the way down. 12. Cash and sitting on the sidelines are fine alternatives The aversion to cash that most investors have is truly to their detriment. So many are fearful of the “cash drag” on the way up — meaning that they fear underperforming due to part of their portfolio not being invested, that they fail to think of the positive addition that same cash drag can add to performance in a down market. Believe it or not, you can keep some of your portfolio in cash. If you don’t have a feel for the market, step to the sidelines. That’s the beauty of a no-called-strike game, you can sit there for as long as you like waiting for that perfect pitch. Some investors believe they should be fully invested, or they’ll lose out to inflation. That’s not a reason to invest. You only want to take a position — long or short (the Club is a long only portfolio, with cash as our hedge) — when you have an edge. If you have nothing compelling to buy, meaning you’re only going to find it more attractive if it goes down in price, then step to the side. It’s better to lose a few percentage points of buying power to inflation than it is to lose money on a low conviction, no-edge position. The idea that you should invest so that you have “enough exposure” is just nonsense. There is one reason and one reason only to invest — to make money. 13. No woulda, shoulda, coulda It is important to review your past mistakes and learn from them. We do it every day for the Club and use that knowledge to help members learn from our mistakes. However, it is also important not to dwell on the past. What’s done is done, you can’t go back and change that bad trade or take advantage of that missed opportunity. Once you’ve reviewed what went wrong and pulled the lesson from it, leave it in the past and refocus on the here and now with your sight set on the future. The market is forward looking and if you’re always looking in the rearview mirror, you’re going to miss opportunities. If you can’t seem to let a name go, take it off your screen, that’s what I would have to do at my hedge fund because I took dwelling on past mistakes to an absolute extreme, and it was psychologically destructive, emotionally damaging, and threw me off my game. You need a clear head and positive energy when making investments. Dwelling on past mistakes will provide you the opposite. 14. Expect corrections; don’t be afraid of them When it comes to the stock market, eventually a correction will happen. You may not know when it will occur or how long it will last. But as certain as death or taxes, there will always be another correction. So then why is it that so many investors are always shocked when it happens. You know why people are shocked? Because they get greedy. When stocks are ripping to the upside, they think the music never stops, they press their bets, they let cash levels dwindle and end up overexposed. When I was at my hedge fund, those were the times I was most worried, when it felt like I made too much money too quickly. Up 2% in a single day and I knew I had to pare back my exposure because it was likely that a big down day was right around the corner. Sometimes that day didn't happen, and I had to swallow my pride and step back in at higher levels. But consider this: During the time that I was running my fund, I compounded at 24% after all fees — roughly doubling the performance of the S & P 500 during that time — and the reason is because my obsession with protecting downside at the cost of missing some upside allowed me to make way more money. Avoiding large drawdowns allowed me to more effectively compound to the upside, even if it meant realizing some of that upside with less exposure. Instead of being shocked, anticipate that corrections will happen and be ready to take advantage. If you're playing the game right, then you should welcome corrections and view them as opportunities to go shopping. After all, when was the last time you ran away from your favorite retailer having a storewide sale? 15. Don’t forget bonds I’m not talking about your asset allocation; I’m talking about the fact that bonds are the competition to stocks . When rates rise, the reduced risk offered by bonds becomes even more attractive and those investors that bought higher-yielding stocks for income are going to rotate out of those names and into bonds. Bonds are also going to key you into expectations for the economy. For example, if the yield on longer duration bonds fall, it may be time to move on from the deeply cyclical names. That’s because it’s a sign the economy is weakening. Consider the recent actions we took for the Investing Club. Higher yields on longer-term bonds signals that we needed to lighten up on some of our growthier names. Those same names investors flocked to when rates were low and economic growth was scarce — making companies that could grow sales and earnings more attractive. 16. Never subsidize losers with winners Investors — professionals and home-gamers alike — hate selling losers. They think the loss isn’t real until its realized and hope upon hope that if they just hold on, eventually they can close it out for a breakeven or in the green. So, what do they do when they need to raise cash? They sell winners. Now, you always want to be booking some profits in your winners, but if you're selling winners just so you don't have to realize losses, then eventually you will be left with portfolio full of losers. As Peter Lynch once put it, "Selling your winners and holding your losers is like cutting the flowers and watering the weeds." If you just can't stomach the idea, just try this: Sell the loser and wait a day. If you really want it back, go ahead and buy it back the next day. But my bet is you will feel better with it off your book and never look to buy it back. 17. Hope is not a part of the equation Hope, like panic, is an emotion. And like panic, is not a strategy you can rely onto make you money. Winners in this game rely on hard work, research, logic, the numbers, and being a realist — not emotions. In some things in life emotion is great. Hoping and praying have their place in religion and can makes sports more fun to watch. But if you want to leverage hope as a strategy when it comes to making money, you’re better off booking a trip to Vegas. 18. Be flexible Imagine if a CEO was so rigid that they failed to adapt to changing consumer preferences; eventually the business would fail. A good investor, like a good CEO, has to adapt to the market. Of course, this also speaks the problem with buy and hold investing and why buy and homework is a much better strategy. If you fail to realize and adapt to a change in the story, you will ultimately be invested in something you didn’t bargain for. If we failed to be flexible for the Trust and didn’t consider that inflation and bond yields were on the rise, we wouldn’t have any oil stocks and would be even more exposed to the problematic technology sector than we are now. By the same token, had we acknowledged that PayPal (PYPL) wasn’t giving us what they promised several quarters ago, we would have saved ourselves a whole lot of hurt and would not have been stuck battling with a terrible performer, which we eventually exited. 19. When high-level people quit a company, something is wrong Pay attention to what is happening at the upper echelons of management. I’m talking about the C-suite. When the folks in these positions leave, you need to take notice and figure out why. These aren’t mid-level jobs that people take for a pay raise, they are the highest level jobs a corporate executive can hope to attain. You don’t get these jobs by maintaining a healthy work-life balance. So, when a person that has finally achieved this level in their professional life — an accomplishment they sacrificed family time, friends, leisure time and other joys of life to reach – ups and quits, you need to ask yourself why. Every now and then there is an exception to this rule. A CEO may be getting up there in years and want to spend more time with family, or really have found somewhere else to work. But in this game we want to focus on the rule, not the exception and the rule of thumb is that top executives don’t quit for “personal reasons.” Chances are there is something else at play, some reason the executive doesn’t want to be associated with the company any longer. You usually don’t want to stick around to find out the reason. 20. Patience is a virtue — giving up on value is a sin Just ask all those geniuses who were paying anything and everything in 2020 and 2021 for companies without sales or companies with revenue growth but massive losses — all the while tossing aside those companies with real assets that make stuff and do things: In the end, everyone knows price, few know value and even fewer have the patience to wait for the cycle to turn and value to become attractive to the broader market. We have battled with a few of these value names in the past for the Club. Two that come to mind are AbbVie (ABBV) and Broadcom (AVGO). AbbVie we picked up in the $70s, attracted to its single digit price-to-earnings ratio and a sustainable dividend in the 5% to 6% range. Sure, the market was on edge about the Humira patent cliff, but at those levels we were being paid to wait thanks to the healthy dividend. The company also had two promising drugs in the pipeline, which combined are expected to exceed peak Humira sales. AbbVie is still in the portfolio, trading around $134 per share. Our cost basis is around $91. As for Broadcom, we bought shares during the depths of the pandemic lows as the dividend yield paid about 8%. We knew the company had real assets. We also knew the chipmaker's management team was one of the best in the world when it comes to M & A. Plus, its products are critical to the secular growth trends investors love like the cloud. But what we had that other investors didn't was patience. We said the value here is so great that we are willing to step in and wait for it to be realized. That focus on value combined with our patience rewarded us greatly. We have exited AVGO. Patience is the greatest advantage home-gamers have over the hedge funds. Nobody is sitting there, threatening redemptions if you don't perform every three months. Use that to your advantage and let a good story play out. If a stock does nothing for 18 months before going on a 40% run in 6 months, that's a heck of a good investment. 21. Just because someone says it on TV doesn’t make it so Television is about entertainment; if it’s not entertaining, the ratings will stink and nobody will watch. Financial television is no different and guess what: Just because someone says it on TV doesn’t mean it’s true. Stations are often just scrambling to get a money manager on-air to talk about the headline of the day. It doesn’t matter if they are any good at what they does. They’re looking for commentary and entertainment. Oftentimes executives will come on television and tell a great story or even an embellished one. They know they can get away with it and will rarely be challenged. They are going to minimize the negatives — if they acknowledge them at all — and exaggerate the positives as much as they can without breaking any rules. We saw this on full display during the SPAC insanity that defined the 2020-2021 market. It may still be worth listening to what the talking head has to say, but you should do your own research and ask yourself if there are any conflicts. Executives are easy: They work for the company and their compensation is largely stock based. Guess which way they want their stock to move? As for the money managers, do you think the guy telling you why Nvidia (NVDA) is going lower is long the stock? Or did they just buy puts the day before releasing that report they were so eager to come on TV to talk about? Even the commentary sell-side analysts, arguably the most objective of the bunch given their restrictions, should be taken with a grain of salt. After all, management isn't going to make time to talk to the analyst that is always bearish, so they're conflicted in that they get more access to management if they play up the bull case. 22. Wait until you have read the press release and heard the conference call I cannot stress this rule enough. If you take an action on your knee-jerk reaction, you will often come to regret it. Wait until you have read the press release and listened to the conference call if you trade, especially keying in on management’s forecast, which is the single most important driver of the stock. If you can’t wait, don’t pull the trigger. If you can’t wait, go do something else not connected with stocks. You are going to save a lot of money. You just don’t know enough. We see this time and again when people want to jump the gun based on some sort of bogus intuition. Sure, you might be correct, but we see all kinds of bizarre swings in shares. Stop, listen, and after checking what the Wall Street consensus is looking for, consider making a trade. Don’t take your cue from the action, take your actions from knowledge. We have seen stocks as big as Johnson & Johnson (JNJ) go down 10% on harebrained headlines, only to be contradicted ten minutes into the meat of the real conference call. We see it all the time with Microsoft (MSFT). Investors who do so little homework that they don’t even realize that Microsoft doesn’t provide guidance on the release will sell even a great print before hearing the guidance about 45 minutes into the call. We saw it with Danaher ’s (DHR) first-quarter earnings release as shares sold off more than 2% premarket, only to bounce back and into the green as the call got underway. 23. Never underestimate the Wall Street promotion machine How many times have you heard me talk about the “Wall Street Fashion Show?” Home-gamers and professionals alike simply do not have enough respect for the hype machine that is Wall Street. They fail to acknowledge that the hype can sometimes keep stocks up far longer than they should be, and that analysts and money managers will often find reasons, even irrational ones, to get behind a loved stock for fear that they will be chasing the move. Things have gotten better, and analysts these days realize that their job is to provide sober, objective opinions on companies and their valuations. But that doesn't mean analysts don't sometimes fall in love with a company or story and look for any way possible to make the data fit their emotional view. Sometimes it is just the wrong interpretation of the data. Sometimes it is the result of data mining as they dig and dig until they find something that meets the narrative they want to spin — even if that data is meaningless. Just remember: The hype will go on until the momentum dies down and those pumping the stock aren't going to tell you the run is over until long after it has ended. That's why the price cuts always seem to follow the stock lower and never seem to come when shares won't quit and valuations are getting stretched. 24. Be able to explain your stock picks to someone else I like to say that if you can’t explain why you want to own the stock in three bullet points, you shouldn’t buy it. You need to sell your picks. I made every portfolio manager at my fund sell me their picks, as if they were a salesperson for the company. That way, I could nitpick points and together we could figure out if the stock was a buy or if they missed a key item that meant it was to be avoided. Not only will doing so help you better understand the story — but in doing so, you will better discover if there is something you missed. Ideally you will even find someone with the opposite view of your own and have a good old fashion bull-bear debate. We do this religiously for the Club. It’s like a debate club behind the scenes. If one of us is bullish, then someone has got to take the bear side, even they are also bullish. Their job for the moment is to find all the bad so that we can objectively figure out the positives and negatives of a potential investment. To help you do this, here are eight questions my ex-wife, the “Trading Goddess,” would ask me over and over again whenever I wanted to put on a new position: What’s going to make this stock go up? Why is it going to go up when you think it is? Is this really the best time to buy it? Haven’t we already missed a lot of the move? Shouldn’t we wait until it comes down a little more? What do you know about this stock that others don’t? What’s your edge? Do you like this stock any more than any of the others you own and why? That last one was especially important because she never liked to add another stock without taking one off. After all, how many good ideas can a person have at once? Moreover, sticking to that rule will help you abide by rule 11 and keep up with your homework . 25. There is always a bull market somewhere At the end of the day, the money is out there. It’s floating around and it needs a home, and chances are it won’t stay in cash for long. That means that while it may at times seem like everything you are looking at is in bear-market mode, there is a bull market somewhere. The money flowing out of one thing is most certainly flowing into something else. That means that if you are going to play this game, it is your job to go out and find it. You may be a little more active than usual and do more research than you usually do. It may mean you have to put on more of a trader hat than you are used to, and that’s OK. What is not OK is resigning yourself to the bear market because you are too lazy to find the bull market. As long as I’ve been at it, there has always been a sector or industry that is working when others aren’t. And while I want to empower you as much as I can to go out and find it on your own — that’s my No. 1 goal for the Investing Club. I also promise to help you find it. (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.
Jim Cramer standing in front of the NYSE, June 30, 2022.
Principles 1-5
Principles 6-10
Principles 11-15 | 2022-09-08T13:39:11Z | www.cnbc.com | Jim Cramer's Guide to Investing: Principles to help you manage your portfolio | https://www.cnbc.com/2022/09/06/jim-cramers-guide-to-investing-principles-to-help-you-manage-your-portfolio.html | https://www.cnbc.com/2022/09/06/jim-cramers-guide-to-investing-principles-to-help-you-manage-your-portfolio.html |
Survey finds millennials staying closer to home
It was an unprecedented moment of uncertainty; college campuses were closed, and jobs were scarce.
Overall, multigenerational living is on the rise and has been for years.
The number of households with two or more adult generations has quadrupled over the past five decades, according to a Pew Research Center report based on census data from 1971 to 2021. Such households now represent 18% of the U.S. population, it estimates.
Finances are the No. 1 reason families are doubling up, Pew found, due in part to ballooning student debt and housing costs. Caregiving also plays a role in the decision process.
In most cases, 25- to 34-year-olds are living in the home of one or both of their parents. A smaller share live in their own home and have a parent or other older relative stay with them.
How schools are teaching Gen Z about money | 2022-09-08T13:39:38Z | www.cnbc.com | Many pandemic 'boomerang kids' still live with mom and dad | https://www.cnbc.com/2022/09/06/many-pandemic-boomerang-kids-still-live-with-mom-and-dad.html | https://www.cnbc.com/2022/09/06/many-pandemic-boomerang-kids-still-live-with-mom-and-dad.html |
U.S. Treasury yields surged higher on Tuesday as investors responded to strong U.S. economic data by betting on further rate hikes from the Federal Reserve.
The yield on the benchmark 10-year Treasury note hit a daily high of 3.353%, adding roughly 16 basis points before settling around 3.347% for its highest close since mid-June. The yield on the 30-year Treasury bond gained more than 14 basis points to 3.493%, hitting its highest close since 2014.
The yield on the 2-year Treasury note jumped 10 basis points to trade at 3.505%. The short-term note climbed to 3.55% last week, notching its highest level since 2007. Yields move inversely to prices, and a basis point is equal to 0.01%.
On the data front, the Institute for Supply Management's non-manufacturing PMI figure for August came in better-than-expected at 56.9, rising month over month. Economists surveyed by Dow Jones were expecting a reading of 55.5. Yields extended their gains for the session after the report was released.
The data points come amid persistent worries about an economic slowdown, with investors monitoring whether the Fed is likely to continue hiking interest rates at an aggressive pace in a bid to tame soaring inflation.
The strong services data could be a sign that the Fed will have more room to hike rates without the U.S. economy falling into a recession. | 2022-09-08T13:41:38Z | www.cnbc.com | U.S. bonds: U.S. Treasury yields rise following strong economic data | https://www.cnbc.com/2022/09/06/us-bonds-treasury-yields-in-focus-amid-economic-data-auctions.html | https://www.cnbc.com/2022/09/06/us-bonds-treasury-yields-in-focus-amid-economic-data-auctions.html |
Incoming Starbucks (SBUX) CEO Laxman Narasimhan told CNBC on Wednesday his vast experience in consumer-facing leadership roles will benefit him when he takes over the top job next year. That consumer experience combined with the fact he oversaw major improvements during his time as chief executive at Lysol and Enfamil maker Reckitt Benckiser are reasons we think this is a fantastic hire . Starbucks is a "very special company," Narasimhan said in an interview alongside three-time CEO Howard Schultz, who has been serving as chief executive on an interim basis since earlier this year when Kevin Johnson retired. We were watching their appearance closely because Starbucks is one of the Club's newer holdings, one that we've been building slowly on weakness in recent weeks. "Nothing in my past will fully prepare me for it, but at the same time, a lot of things I've done in the past I can bring to bear for this company," said Narasimhan, in his final weeks at Reckitt. Before that, he worked at PepsiCo (PEP) from 2012 to 2019, and he also spent roughly two decades at McKinsey & Co., focused on consumer products, retail, and technology. Narasimhan said the work that Schultz — previously Starbucks CEO from 1986 to 2000, and also from 2008 to 2017 — has done since rejoining the coffee chain sets the stage well. "The one thing I wanted to be sure of is that there would be investments made in order for us to renew the partner experience, in order for us to renew the customer experience," Narasimhan said. "Some of the things Howard has done ever since he's come in, in terms of some of the bold decisions he's made, made me actually a lot more comfortable. So, I'm at peace." How we got here After helping grow Starbucks from a Pacific Northwest coffeehouse operator to a global powerhouse, Schultz has now been working to reinvent the company in the face of a barista unionization push and changes to customer behavior that accelerated during Covid. Faith in these efforts is a key reason why the Club started a position in Starbucks late last month. Schultz's actions so far included suspending the company's stock buyback program to free up cash "to invest more profit into our people and our stores," he wrote in April when he announced the decision . The dividend was untouched. While Starbucks shares tumbled on that buyback suspension announcement, Wall Street in general has tremendous confidence in Schultz's leadership. For example, the stock fell in late 2016 when Starbucks said Schultz, in his second stint as CEO, would be stepping down again and would be replaced by Johnson. Then, in March when the company said Schultz would be returning to the company as interim CEO, Starbucks shares soared. A relatively muted stock reaction to Narasimhan's appointment as full-time CEO suggests most investors are fans of the hire and succession plan — just like we are at the Club. "I am never coming back again because we found the right person," Schultz told CNBC. "In 2008, when I did come back, Starbucks was in a much different position. We did not have demand in our stores. We have record demand today. Laxman is coming in with the wind at his back." Transition plan: 'Six months really of learning' Schultz isn't fully stepping away, though. Not only will he stay on the board and be an advisor to before and after Narasimhan becomes CEO in April 2023, there's an elongated and slightly unusual transition. Narasimhan is set to come aboard at Starbucks in October and begin to immerse himself in the company, including taking a 30-hour barista course and visits to coffee farms. Narasimhan likened it to an apprenticeship, while Schultz said it "speaks to the humility and the confidence that we have in each other, we have in the future of the company." "Howard and I co-created this," Narasimhan said. "Essentially, I'm a sitting CEO, but as of Oct. 1, I have no [profit and loss statement], I have no budget, I have no people reporting to me. It's actually a very liberating experience in so many ways. It's a unique opportunity for me to apprentice very close to an iconic founder in an iconic company with an iconic brand." He added, "It's six months really of learning and getting steeped in the culture." With the CEO announcement out of the way, the next key event for Starbucks is this coming Tuesday, Sept. 13, when the company hosts an investor day in Seattle. The event is expected to provide updates on long-term strategy and targets. We will be paying close attention to management's presentations. Schultz on inflation, unions, China Ahead of the event, Schultz did provide commentary in the CNBC interview on a couple other important topics for Starbucks investors such as inflation's impact on demand, unionization and operations in China. "We haven't seen any attrition, whatsoever, that demonstrates to us" that Starbucks' coffee is something "customers want to give up," Schultz said. "Despite the fact we had to raise prices about 5% over the past year because of inflation, our business is quite strong." Schultz also sought to downplay the organizing efforts happening at some Starbucks locations, although the company has, in response, instituted a number of changes to worker benefits and compensation. It also faces allegations of wrongful retaliation over union pushes . "There's 9,000-company owned stores. Only 300 have been petitioned," Schultz said. "I think there's been a lot made of this that's probably greater. It's not going to be something that is going to significantly change the course of history for Starbucks. It's that simple." Starbucks' very recent history has been challenged by Covid lockdowns in China, which is the company's second-largest market by revenue. The company has about 6,000 stores there, Schultz said. The company is opening "one store every 10 hours in China," he added. "The situation in China is opening up. China will be much larger than the U.S. when it's all said and done." (Jim Cramer's Charitable Trust is long SBUX . 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. | 2022-09-08T13:44:46Z | www.cnbc.com | Investing Club: We like the vision Howard Schultz and Starbucks incoming CEO Laxman Narasimhan laid out | https://www.cnbc.com/2022/09/07/investing-club-we-like-the-vision-howard-schultz-and-starbucks-incoming-ceo-laxman-narasimhan-laid-out.html | https://www.cnbc.com/2022/09/07/investing-club-we-like-the-vision-howard-schultz-and-starbucks-incoming-ceo-laxman-narasimhan-laid-out.html |
Many companies across a range of sectors stand to benefit from funding in the Inflation Reduction Act, but both Bank of America and Morgan Stanley believe one name stands out: NextEra Energy . "We see NEE as the best positioned company in our universe to take advantage of the benefits that the bill provides," Bank of America said Tuesday in a note to clients, while hiking its target on the stock from $87 to $94. Morgan Stanley, meantime, upgraded the company to an overweight rating Tuesday, calling it "one of the biggest beneficiaries of the Inflation Reduction Act." The firm also raised its target on the stock from $94 to $99. Shares of NextEra gained 2.6% to close at $87.37 on Tuesday. The Florida-based utility is a major developer of renewable energy, including wind and solar, meaning the company stands to benefit from the hundreds of billions of dollars in the Inflation Reduction Act earmarked for clean energy. The funding, which is the largest climate package in U.S. history, seeks to incentivize renewable energy output while also sparking the development of domestic supply chains for critical raw materials. Morgan Stanley's analysts, led by David Arcaro, said NextEra's stock price is reflecting nine years of renewables growth, while the firm sees "substantial further value." Arcaro added that the company's price-to-earnings ratio is below prior peaks, and that the company's "unprecedented strong renewable backdrop merits an expanding premium." Bank of America echoed this point, saying the stock isn't trading at enough of a premium relative to its peers. The stock currently trades at 29 times forward earnings, according to FactSet. "We see opportunity for NEE to accelerate its C & I [commercial and industrial] efforts as corporates will not wait to take advantage of lower cost renewables relative to the elevated power price environment," the firm's analysts led by Julien Dumoulin-Smith said. "The implications of legislation on NEE's outlook is only partially baked into shares at this point," he added. Shares of the company are flat over the last month, and down 6% for 2022. — CNBC's Michael Bloom contributed reporting. | 2022-09-08T13:47:45Z | www.cnbc.com | Two major banks see this stock as the biggest winner from Biden's climate law | https://www.cnbc.com/2022/09/07/two-major-banks-see-this-stock-as-the-biggest-winner-from-bidens-climate-law.html | https://www.cnbc.com/2022/09/07/two-major-banks-see-this-stock-as-the-biggest-winner-from-bidens-climate-law.html |
Former U.S. President Donald Trump's White House chief strategist Steve Bannon arrives to surrender at the Manhattan District Attorney's Office in New York, U.S., September 8, 2022.
Former top Trump White House advisor Steve Bannon surrendered at a New York City courthouse on Thursday morning to face new state criminal charges related to a fundraising campaign to build a wall on the U.S. border with Mexico.
Bannon, 68, is due to be arraigned on the case at about 2:15 p.m. ET in Manhattan Criminal Court.
The new indictment against him, which has yet to be made public, comes more than two years after Bannon was arrested on federal charges that he and three other men defrauded donors who gave millions of dollars to fund the "We Build the Wall" campaign.
That prior case ended when former President Donald Trump pardoned Bannon on his last night before leaving office in January 2021.
Bannon was one of dozens of people to receive a pardon or receive a commutation of a criminal sentence by Trump in his last weeks in office.
Presidential pardons only apply to federal crimes, and do not protect people from prosecution on state charges.
As he walked into Manhattan Criminal Court, Bannon told a crowd of reporters and gawkers that the new prosecution against him is politically motivated.
He was referring to New York City Mayor Eric Adams having dispatched a group of officials to the southern border earlier this week to meet with Border Patrol agents. That trip was part of an ongoing feud the Democrat Adams has with Texas Gov. Greg Abbot, a Republican, who has sent buses filled with migrants to New York City.
One man yelled at Bannon: "Stop hurting America, you greasy, two-bit grifter!"
Manhattan District Attorney Alvin Bragg Jr. and New York Attorney General Letitia James are scheduled to speak at a press conference at 1 p.m. ET to discuss the indictment against Bannon.
Earlier this week, Bannon told NBC News that New York "has now decided to pursue phony charges against me 60 days before the midterm election." | 2022-09-08T13:50:22Z | www.cnbc.com | Trump White House aide Steve Bannon surrenders to face criminal charges | https://www.cnbc.com/2022/09/08/trump-white-house-aide-steve-bannon-surrenders-to-face-criminal-charges.html | https://www.cnbc.com/2022/09/08/trump-white-house-aide-steve-bannon-surrenders-to-face-criminal-charges.html |
Bond yields rose slightly on Thursday from the previous session after the European Central Bank hiked interest rates in an effort to tame high inflation.
The yield on the benchmark 10-year Treasury note was up 1 basis point at 3.25% at around 9:00 a.m. ET. The yield on the 30-year Treasury bond was up 2 basis points at 3.413%.
The yield on the 2-year Treasury traded 3 basis points higher at 3.479%. The short-term note rose to 3.55% last week, reaching its highest level since 2007. Yields move inversely to prices, and a basis point is equal to 0.01%. | 2022-09-08T13:50:29Z | www.cnbc.com | U.S. bonds: U.S. Treasury yields after Wall Street's best day in month | https://www.cnbc.com/2022/09/08/us-bonds-us-treasury-yields-after-wall-streets-best-day-in-month.html | https://www.cnbc.com/2022/09/08/us-bonds-us-treasury-yields-after-wall-streets-best-day-in-month.html |
Investors are bracing for more volatility ahead, as they navigate what has traditionally been a "seasonally weak" period for stocks . Major U.S. averages closed out their third negative week in a row last week, weighed down by fears that the U.S. Federal Reserve will continue to pursue aggressive interest rate hikes to temper inflation. "With the Federal Reserve's hawkish comments, volatility has returned to the marketplace and the S & P 500 seems to be trying to retest some of its earlier lows of the year," Phil Blancato told CNBC "Street Signs Asia" on Friday. The president and CEO of Ladenburg Thalmann Asset Management, which has more than $4 billion in assets under management, said he expects the S & P 500 to remain volatile "at least for the next six weeks." "Historically, volatility tends to rise in September and October, especially in the years leading up to midterm elections. But equities tend to rebound strongly in the following months, turning positive shortly after, suggesting that patience and investment discipline will likely be key in the months ahead," he added. While the next few weeks will see higher market volatility, Blancato believes a "strong rally" for stocks is on the cards as valuations improve, the Fed becomes less hawkish and the U.S. stays out of a recession. The second week of October has traditionally been the "beginning of the year-end rally," while inflationary pressures would have sufficiently eased by then for the Fed to reconsider its stance, he said. What to buy on the dip Blancato believes this is a "great opportunity" to buy on the dip, with "wonderful names" that are now significantly less expensive than they were just a couple of weeks ago. He favors dividend-paying stocks and companies with good cash flow. "I like volatility. I take advantage of markets like this," he said. He likes Costco as "one of the dominant" warehouse retailers with pricing power and a "distinctive" membership business model. He says the company will benefit as consumers favor discount stories amid high inflation, while other positives include its expanding e-commerce presence and rising dividends. He also likes ExxonMobil , which he described as the "benchmark" for the energy sector. The oil giant has significantly less debt relative to its peers, according to Blancato. And the expansion of its share buyback program is driving shareholder value, he added. Cybersecurity firm CrowdStrike made Blancato's list. He expects the company to benefit immensely from "massive growth" in the industry. The company also has a strong balance sheet, he added. Bottoming in consumer confidence a positive signal A bottoming in consumer confidence also bodes well for the market, according to Blancato. In July, the University of Michigan Consumer Sentiment Index fell to its lowest point on record with a reading of 51.5 — just the fourth time in its history that the index had dropped below 60. "A bottoming out in consumer attitude tends to be followed by favorable market performance," Blancato said. In the three previous instances when the sentiment index fell below 60, the stock market traded higher in each of the following six- and 12-month periods, he added. The S & P 500 saw an average increase of 16% over the next six months and 20.9% over the following 12 months, according to Blancato. | 2022-09-08T13:50:36Z | www.cnbc.com | Wall Street pro predicts when the S&P 500 will rally | https://www.cnbc.com/2022/09/08/wall-street-pro-predicts-when-the-sp-500-will-rally.html | https://www.cnbc.com/2022/09/08/wall-street-pro-predicts-when-the-sp-500-will-rally.html |
Young adults in majority Black and Hispanic communities tend to have lower credit scores compared to those who reside in majority white communities, new research from the Urban Institute finds.
Those factors can leave those borrowers vulnerable to cycles of debt, one expert says.
Young adults in majority Black and Hispanic communities tend to have lower average credit scores compared to those who reside in majority white communities, according to new research from the Urban Institute.
What's more, young adults in majority Black and Hispanic communities are also more likely to have their credit scores decline as they age, according to the non-profit research organization.
Between 2010 and 2021, 32.9% of 18- to 29-year-olds in majority Black communities saw their credit scores decline, while 26.2% of those in majority-Hispanic and just 21% of those in majority white communities saw their scores go down.
One such high interest product, payday loans, have recently have come under scrutiny for the cycles of high fees and debt associated with them.
Those households have less wealth to draw from previous generations due to lending policies that favored white borrowers, such as property covenants that prevented Black individuals from living in majority white areas and redlining, whereby mortgage lenders would restrict the customers they served.
For individuals who are trapped in a high-cost credit borrowing cycle, it can help to reach out for help from counselors or non-profits, Garon said. Credit unions may also be a resource to consolidate loans at lower interest rates, making it easier to pay debt balances down.
But in order for the system to really change, policy makers will have to address the issue with proactive measures to make sure lenders of all kinds are providing loans fairly and the credit score system gives all borrowers a chance at affordable credit, Garon said.
Bank of America recently announced it is launching new zero down payment, zero closing cost mortgage products for certain markets including majority Black and/or Hispanic/Latino neighborhoods, in Charlotte, North Carolina; Dallas; Detroit; Los Angeles; and Miami. Other financial institutions including Citi are also providing programs aimed at making their lending practices more inclusive. | 2022-09-08T13:50:56Z | www.cnbc.com | Why young adults in minority communities have lower credit scores | https://www.cnbc.com/2022/09/08/why-young-adults-in-minority-communities-have-lower-credit-scores.html | https://www.cnbc.com/2022/09/08/why-young-adults-in-minority-communities-have-lower-credit-scores.html |
If your priority right now is buying just what you need, here's the best way to pay for it.
Published Tue, Sep 6 2022
People shop at a grocery store on June 10, 2022 in New York City.
With the high cost of living these days, Americans have shifted their spending habits to focus on buying only what they need. While things such as gas, groceries and toiletries are considered to be necessary purchases, the next question becomes, what is the best way to pay for them?
In today's economic climate, especially now that most things are more expensive than usual, is it better to use cash, credit or debit to fund your everyday essentials? Here's what the experts have to say.
Avoid taking on debt to pay for essentials
Rod Griffin, senior director of public education and advocacy for the Experian credit bureau, pinpoints the following as his one universal piece of advice: Consumers should avoid taking on debt to pay for essentials.
With increased interest rates — and the expectation that they are going to climb even higher in the months to come — now is not a good time to take on debt to fund your everyday costs. That means if you can't afford to pay off your credit card bill by the end of its current billing cycle, you should refrain from charging more expenses until you feel better equipped to do so.
As tempting as they may be to turn to when your money is spreading thin, credit cards already charge notoriously high interest rates — and they've gone up even higher since the Federal Reserve's recent rate hikes.
"I would discourage using credit to pay for day-to-day expenses if you cannot pay the balance back on time and in full each month," Griffin says. Carrying a balance is not only costly, but it can also hurt your credit score if your outstanding balance-to-credit-limit ratio, or credit utilization rate, is high.
Bruce McClary, senior vice president of membership and communications at the National Foundation for Credit Counseling, also warns against using a buy now, pay later option at checkout since these are essentially loans, or debt, that can ultimately be costly and eat away at your credit score.
"Many are presented at the moment you are ready to complete your purchase and may not require a credit approval," McClary explains. "These are loans you have to repay, and they may come with interest and fees. There's also the risk you could quickly [go] into more debt than you can manage."
Even if you're making your buy now, pay later payments on time and in full, each purchase that you fund this way shows up as its own separate account on your credit report, meaning multiple purchases can be listed as multiple short-term loans that each close once their balances are paid off. This, in turn, can end up lowering the average age or length of your credit history, which is another important factor in calculating your credit score.
Limit your spending by using cash
Consumers who can't pay their credit card balance in full or who want to steer clear of buy now, pay later loans may want to opt for using cash instead for everyday essentials.
"Unlike credit cards that come with higher monetary limits, most consumers carry a limited amount of cash on them, making it easier to stick to their budget," Griffin says. "Carrying cash can help consumers limit their purchases to the essentials on their list, and eliminate overspending and taking on more debt."
In a similar vein, you can use a debit card. Though you aren't physically limited to what's in your wallet with a debit card, you are limited to what's in your checking account. Since the money comes right out, you don't have to worry about coming too close to your credit limit or being charged interest — this is assuming you don't overdraft.
Consider using a debit card that offers rewards, such as the Discover Cashback Debit Account, which offers cardholders 1% cash back on up to $3,000 in monthly debit card purchases. Those who take full advantage of these rewards can earn up to $30 cash back per month and $360 annually.
Discover Bank is a Member FDIC.
1% cash back on up to $3,000 in debit card purchases each month
60,000+ Allpoint® and MoneyPass® ATMs
Top-rated mobile app
Opt-in to free overdraft protection
In some cases, a credit card can be a helpful tool
The caveat to the above advice is if you actually can afford (and plan to) pay off your credit card balance on a monthly basis, in that case, using credit can be beneficial when shopping for essentials.
Thanks to credit card rewards programs that offer cash back or points and miles with every purchase, cardholders can stretch their money a little further, Griffin explains. For instance, you can use cash-back credit cards to pay your bill when you redeem the rewards as a statement credit.
Consider the Wells Fargo Active Cash® Card — which offers unlimited 2% cash rewards on all eligible purchases — and your cash rewards can be redeemed as a statement credit, through a Wells Fargo ATM by using a Wells Fargo debit or ATM card, as a direct deposit into a Wells Fargo savings or checking account or as a paper check. The no-annual-fee card also offers new cardholders a welcome bonus of $200 worth of cash rewards after they spend $1,000 within the first three months of account opening.
If you're not able to pay off a credit card bill in full each month, it's better to use cash or a debit card to fund your everyday essentials. Otherwise, using a credit card that offers cash-back or rewards points can actually help you maximize your spending in the long run.
At the end of the day, it's important to remember that every consumer is different. A payment method that might be right for your friend or family member may not be what's best for you. At the very least, McClary recommends having a spending plan based on your current financial situation to help cover the basics.
These 16 states are issuing additional stimulus checks to qualifying residents
How increasing interest rates could reduce inflation, but potentially cause a recession
8 tips to help you save money on back-to-school shopping in 2022 | 2022-09-08T13:51:09Z | www.cnbc.com | What To Consider When Buying Essentials During High Inflation | https://www.cnbc.com/select/consider-this-when-buying-essentials-during-high-inflation/ | https://www.cnbc.com/select/consider-this-when-buying-essentials-during-high-inflation/ |
Select takes a closer look at the trade-offs between 15-year and 30-year terms on a home loan.
Lifestylevisuals | E+ | Getty Images
One of the most important parts of taking on a mortgage to buy a house is making sure the terms of the loan best suit your financial needs. Not only does this involve securing the lowest interest rate possible, it also means choosing the right mortgage term.
The mortgage term tells you how much time you have to repay your loan in full. The two most common home loan terms borrowers typically find themselves having to pick between are 15-year and 30-year mortgages, though some lenders will let you take on terms as low as eight or 10 years.
These 15-year and 30-year mortgages each come with their own advantages and disadvantages, so it's important to make the choice that's best for your financial goals.
Below, Select takes a closer look at the trade-offs of 15-year and 30-year terms on a home loan and what you should consider if you're choosing between them.
Will the monthly payment fit into your budget?
Generally, the longer the life of your loan (or loan term) is, the lower your monthly payments will be. That's because borrowers repay their home loans in fixed, equal monthly payments over the entire life of the loan — someone who has a longer time horizon will end up with smaller payments compared to someone with a shorter time horizon for the same loan amount.
Rocket Mortgage, one of the largest home loan lenders in the U.S., uses an example of a $240,000 home loan with a 4% interest rate to illustrate this point. If the borrower chooses a 30-year loan term, they'll be making a monthly payment of $1,145.80 including principal and interest (insurance and other expenses are not included in this instance). If they choose a 15-year loan term, however, the monthly payment works out to be $1,775.25 — that's a difference of more than $629.45 a month.
If you anticipate not having enough wiggle room in your monthly budget to take on a higher mortgage payment, it could make more sense to go with a 30-year term so you can have smaller monthly payments stretched out over a longer time horizon.
Is your goal to save on interest?
One major drawback of having a 30-year mortgage is you'll end up paying more in interest over the life of the loan. Not only will you be charged interest for a longer period of time, lenders will typically also offer slightly higher rates for this option — the faster they can be repaid in full, the better, as the risk that you might potentially default on your payments will be smaller.
Some borrowers may be averse to the idea of paying more interest over time and may prefer to save on those charges by paying a slightly higher amount each month. If saving on interest is your biggest priority, a 15-year mortgage may be a better fit for you.
If you're looking to get a lower interest rate on your mortgage, make sure you also have a high credit score when applying and consider one of the best mortgage lenders as ranked by Select, like Rocket Mortgage and SoFi.
Can use the loan to buy or refinance a single-family home, second home or investment property, or condo
Can get pre-qualified in minutes
Rocket Mortgage app for easy access to your account
Runs a hard inquiry in order to provide a personalized interest rate, which means your credit score may take a small hit
Doesn't offer USDA loans, HELOCs, construction loans, or mortgages for mobile homes
Doesn't manage accounts for jumbo loans after closing
Conventional loans, jumbo loans, HELOCs
Fast pre-qualification
Provides access to Mortgage Loan Officers for guidance
$500 discount for existing SoFi members
0.25% price reduction when you lock in a 30-year rate for a conventional loan
Offers up to $9,500 cash back if you purchase a home through the SoFi Real Estate Center
Doesn't offer FHA, VA or USDA loans
Mortgage loans are not available in Hawaii
Do you plan to tap into your home equity sooner rather than later?
Home equity is a measure of how much of the property you actually own. Think of it this way: When you take on a mortgage, you're making a down payment but paying the lender back for the loan they gave you to buy the house.
If, for example, you only make a 10% down payment on a $400,000 property, the lender essentially owns more of it than you do since you only paid for 10% of the home's value. As you continue to make your mortgage payments over the years, you'll eventually own more of the property than the lender does, which is how you build equity in your home.
Having a sizable amount of equity in your home can come in handy if you decide to take out a home equity line of credit, or a HELOC, for sizable renovations or other large expenses. You can also use the equity from your home through a HELOC to make a down payment for an investment property, so building up equity sooner can also help you reach certain goals faster.
The higher your monthly mortgage payments are, the faster you'll be able to build your equity — another reason why a 15-year mortgage can be more appealing to some borrowers.
How soon do you want to be mortgage-free?
One huge benefit when it comes to going for the 15-year loan term is you'll be able to pay off your house 15 years sooner than you would if you were to go with the 30-year mortgage.
Being mortgage-free means you'll have more room in your budget for other things — some homeowners may want to pay off their house as quickly as possible so they can purchase a second property and focus on paying off the mortgage for that instead.
Other people may just be emotionally uncomfortable with having debt and prefer to get rid of it as quickly as possible. Keep in mind that while taking on a 15-year term to be mortgage-free sooner can come with a slightly lower interest rate and more money saved on interest overall, you'll wind up having to make higher monthly payments as a trade-off.
If you want to build equity faster and save on interest but can't commit to making higher monthly payments on a 15-year mortgage, you can try to make extra mortgage payments to help pay off the loan faster. This works best as long as your mortgage lender doesn't charge prepayment penalties for paying off the loan early.
If you're still a few years away from beginning your homebuying process, it can still be helpful to reach out to some mortgage lenders so you can learn more about the financial moves you need to make to be in an ideal position to buy your home.
For instance, if you really want to go with a 15-year mortgage but your current income won't allow you to make higher payments, a mortgage lender might suggest you save more money and get a higher paying job so you can afford to make them.
If you're still not sure where to start when it comes to finding a lender to work with, Select rounded up a few that cater to a variety of needs. Ally Bank, for example, doesn't charge lender fees, which can help borrowers save a bit of money upfront during the homebuying process.
Chase Bank, among other popular lenders, also offer a jumbo loan option for those who may need to borrow more than $647,000 to purchase their home.
Conventional loans, HomeReady loan and Jumbo loans
3% if moving forward with a HomeReady loan
Ally HomeReady loan allows for a slightly smaller downpayment at 3%
Pre-approval in just three minutes
Application submission in as little as 15 minutes
Online support available
Existing Ally customers can receive a discount that gets applied to closing costs
Doesn't charge lender fees
Doesn't offer FHA loans, USDA loans, VA loans or HELOCs
Mortgage loans are not available in Hawaii, Nevada, New Hampshire, or New York
Chase DreaMaker℠ loan allows for a slightly smaller down payment at 3%
Discounts for existing customers
A number of resources available for first-time homebuyers including mortgage calculators, affordability calculator, education courses and Home Advisors
Doesn't offer USDA loans or HELOCs
Existing customers discounts apply to those who have large balances in their Chase deposit and investment accounts
What is a mortgage and how does it work? | 2022-09-08T13:51:15Z | www.cnbc.com | How to Choose Between a 15-Year and 30-Year Mortgage | https://www.cnbc.com/select/how-to-choose-between-15-year-and-30-year-mortgage/ | https://www.cnbc.com/select/how-to-choose-between-15-year-and-30-year-mortgage/ |
Production of electric Amazon delivery vans on April 11, 2022 at Rivian's plant in Normal, Ill.
The companies plan to build two different EV vans – one for each company – on a shared assembly line, the companies said. The idea is to reduce costs for both companies by sharing investments, technology and suppliers.
While Mercedes-Benz has been building commercial vehicles for many years, and electric vans for over a decade, Rivian is a newcomer to the segment. The Michigan-based EV startup began building EV delivery vans for Amazon earlier this year, just a few months after it began production of its own upscale electric pickups and SUVs in its Illinois factory. | 2022-09-08T17:19:36Z | www.cnbc.com | Mercedes-Benz, Rivian partner on EV commercial vans in Europe | https://www.cnbc.com/2022/09/08/mercedes-benz-rivian-partner-on-ev-commercial-vans-in-europe.html | https://www.cnbc.com/2022/09/08/mercedes-benz-rivian-partner-on-ev-commercial-vans-in-europe.html |
Bitcoin prices have been under pressure in 2022 after the collapse of algorithmic stablecoin terraUSD and subsequent bankruptcy filings from lender Celsius and hedge fund Three Arrows Capital.
The world's largest cryptocurrency was trading at $20,741.55 at around 6 a.m. ET, after falling to its lowest level since mid-June earlier in the week. | 2022-09-09T11:45:23Z | www.cnbc.com | Bitcoin (BTC) tops $20,000 in 'bearish rally' as U.S. dollar falls | https://www.cnbc.com/2022/09/09/bitcoin-btc-tops-20000-in-bearish-rally-as-us-dollar-falls-.html | https://www.cnbc.com/2022/09/09/bitcoin-btc-tops-20000-in-bearish-rally-as-us-dollar-falls-.html |
Kayla Tausche@kaylatausche
The world's major democracies have banned the import of Russian oil. They are now negotiating a ban on insuring and shipping Russian oil to other countries, unless the sale is below a set price.
Russian President Vladimir Putin chairs a meeting of the State Council Presidium on the development of the national tourism industry in Vladivostok, Russia September 6, 2022.
Foreign leaders and financial officials will have several gatherings over the next two months – at the UN General Assembly in New York, meetings of the International Monetary Fund and World Bank in Washington, and multilateral summits overseas – to discuss the mechanism. Negotiators expect that the Group of 20 nations – or, 19 with Russia excluded – will have made a decision by the time they gather in Bali, Indonesia in mid-November. | 2022-09-09T17:53:14Z | www.cnbc.com | Russian oil price cap: G-7 tries to recruit countries | https://www.cnbc.com/2022/09/09/russian-oil-price-cap-g-7-tries-to-recruit-countries.html | https://www.cnbc.com/2022/09/09/russian-oil-price-cap-g-7-tries-to-recruit-countries.html |
Disney will reveal new information about its upcoming slate of animated movies and TV shows during its Pixar and Disney Animation Studios panel at the D23 Expo on Friday.
Disney is expected to reveal new titles from Pixar and its Walt Disney Animation Studio as well as films associated with its live-action remakes during Friday's panel. It will also share which films will head to theaters and which will arrive by way of Disney+. | 2022-09-10T00:00:23Z | www.cnbc.com | Everything we learned at D23 Expo′s Pixar and Walt Disney Animation panel | https://www.cnbc.com/2022/09/09/everything-we-learned-at-d23s-pixar-and-walt-disney-animation-panel.html | https://www.cnbc.com/2022/09/09/everything-we-learned-at-d23s-pixar-and-walt-disney-animation-panel.html |
Disney unveiled footage for "Black Panther: Wakanda Forever," "Ironheart," "Secret Invasion," "Werewolf by Night" and more during the D23 Expo.
Matt Shakman, the director of "WandaVision," will officially direct the MCU's "Fantastic Four" feature film.
The Disney+ Marvel website home screen on a laptop computer in the Brooklyn borough of New York, US, on Monday, July 18, 2022.
Hot on the heels of San Diego Comic Con in July, Disney unveiled more information about its burgeoning Marvel Cinematic Universe during the D23 Expo on Saturday.
Feige announced the team that will be part of "Thunderbolts." This includes Julia Louis-Dreyfus as Valentina Allegra de Fontaine, David Harbour as Red Guardian, Hannah John-Kamen as Ghost, Olga Kurylenko as Task Master, Wyatt Russel as John Walker aka U.S. Agent, Florence Pugh as Yelena Belova and Sebastian Stan as the Winter Soldier.
"It tells you all you need to know about the Thunderbolts when the beloved Winter Soldier is the most table among them," Feige teased.
'The Marvels'
Brie Larson, Iman Vellani and Teyonah Parris closed out the panel with footage from the upcoming film. Miss Marvel, Captain Monica Rambeau and Captain Marvel find their powers have become intertwined and the three heroes must become untangled. In the mean time, the three continue to accidentally swap places, leading to quite a few laughs.
The footage shown at the D23 Expo was action-packed and filled with comedic beats. Also, everyone's favorite Flerkin, Goose, will be back for more antics. | 2022-09-10T20:46:34Z | www.cnbc.com | Disney reveals Marvel Cinematic Universe updates at D23 Expo | https://www.cnbc.com/2022/09/10/disney-reveals-marvel-cinematic-universe-updates-at-d23-expo.html | https://www.cnbc.com/2022/09/10/disney-reveals-marvel-cinematic-universe-updates-at-d23-expo.html |
Los Angeles, CA - November 23: An air travel passenger is hugged while being picked up amid a long line of travelers awaiting rides after arriving at Los Angeles International Airport terminal 1 for the Thanksgiving holiday in Los Angeles on Tuesday, Nov. 23, 2021.
Average domestic airfare for trips over Thanksgiving is $350, and international roundtrips are going for an average of $795 — both mark a 22% increase compared with 2019, before the pandemic, Hopper said.
Domestic roundtrip tickets over Christmas, which falls on a weekend this year, are nearly a third more expensive than 2019, averaging $463, while international is up 26% to $1,300, according to Hopper's data.
Hopper's lead economist Hayley Berg recommends booking holiday travel no later than mid-October and said: "If you see a good price, even a price that looks reasonable to you, we recommend you book." | 2022-09-12T18:10:11Z | www.cnbc.com | Holiday airfare will be most expensive in 5 years as pandemic fears wane | https://www.cnbc.com/2022/09/12/thanksgiving-christmas-travel-to-lift-airfare.html | https://www.cnbc.com/2022/09/12/thanksgiving-christmas-travel-to-lift-airfare.html |
Sometimes keeping it simple and consistent is a strategy that can pay off compared with overthinking the market. For Hennessy Fund Cornerstone Mid Cap 30 (HFMDX) fund, relying on price to sales and a nearly two-decades long formula since its 2003 inception has enabled the fund to outperform the market even amid this year's market shakeup. "We're not stock pickers," says Ryan Kelley, chief investment officer and portfolio manager. "We don't go out and say we think you guys should buy this or sell this. This is just what we own and it's what's worked for us." Even with the S & P 500 down 15% this year, and the Russell Midcap index off by more than 12%, thanks to an aggressive Federal Reserve and slowing economy, shares of the mid-cap fund have risen almost 3% year to date, including reinvested dividends. Last year the fund surged 27.2%. Not only has HFMDX outperformed this year but it's also done the same over the last three, ranking in the top 1% percentile, according to Morningstar, with a 10-year trailing return of roughly 10.7%. The fund's expense ratio stands at 1.36%. How it works The fund includes 30 common stocks with market capitalizations between $1 billion and $10 billion. To find those, Kelley uses the "Mid Cap 30 Formula," which searches for companies expected to grow annual earnings over the previous year and have seen positive stock price growth in the previous three- and six-month periods. Most importantly, the fund limits itself to stocks with a price-to-sales ratio below 1.5 times, meaning investors pay no more than a $1.50 for every dollar of revenue the company brings in. "We think price to sales is one of the most pure numbers," Kelley says, adding that the metric offers the clearest view of a company's potential value. "There's much less manipulation you can do on the revenue side versus when you get down to EPS, there's a lot of moving parts in between." The focus on midcap stems from data indicating less volatility than small caps and in-line performance to large caps over a 10-year rolling period, Kelley explains. He tends to rebalance once a year between September and November when about two-thirds of the portfolio turns over. It's a value approach that's led the fund to strong pockets of the market, including energy, at the right time, and even before the sector took off in the wake of the war in Ukraine. In the months since, the fund's been adding to its stake in the sector using this strategy, investing in oil refineries and under-the-radar companies such as HF Sinclair and Antero Resources — its largest holding. The formula also steered Hennessy toward steel and metal manufacturer Commercial Metals . BJ's Wholesale is another key holding that meets the fund's criteria. Hennessy first bought shares of the company about three years ago and has slowly built its stake over the past 12 months, bringing the total position to roughly 4.4% of the portfolio, according to FactSet data. Shares of BJ's are up more than 18% this year, with the stock hitting an all-time high earlier this month. Kelley says the stock has benefited from sales at its gas stations and should continue performing well as consumers trade down in the face of inflation. Despite a long-term shift from coal, Peabody Energy is another name Kelley added to in recent months, bringing the position to roughly 6.3% today from 2.8% about a year ago, according to FactSet data. Peabody has soared 132% this year. To be sure, outperformance isn't a sure thing, especially if mega cap stocks once again take over market leadership after taking a breather this year amid rising interest rates. "We are longer-term investors," Kelley said. "We want to provide participation on the upside when we can but also because we're looking at pretty strict valuation metrics we're trying to protect the downside so we don't want our investors to lose as much when the market's going down."
Scott Minerd calls for the S&P 500 to drop 20% by mid-October, saying the bear market is intact | 2022-09-12T20:42:40Z | www.cnbc.com | How a midcap fund uses a simple strategy to outperform the market | https://www.cnbc.com/2022/09/10/how-a-midcap-fund-uses-a-simple-strategy-to-outperform-the-market-.html | https://www.cnbc.com/2022/09/10/how-a-midcap-fund-uses-a-simple-strategy-to-outperform-the-market-.html |
Published Sat, Sep 10 20228:30 AM EDT Updated 1 Min Ago
The Impact of Pres. Biden's student loan forgiveness program
Like many borrowers, Halid Hamadi, 28, is poised to benefit — at least somewhat — from student loan forgiveness.
After President Joe Biden announced he will forgive $10,000 in federal education debt and up to $20,000 for recipients of Pell Grants who meet the income threshold, Hamadi said he was happy.
Hamadi currently owes roughly $100,000 in federal and private loans from college. He is also one of the nearly 40 million students with no degree to show for that debt.
The economics major was on track to graduate in 2016, but he ran out of funds in his last year of school, he said. Hamadi said he was denied additional loan money, making it nearly impossible to remain enrolled at Penn State University. "It was out of my hands at that point."
Instead, Hamadi left school and completed Merit America's IT Support professional certificate program, which took less than four months. He now works as an integration engineer based in Washington, D.C.
Halid Hamadi
Amid the rising cost of tuition, growing student loan burden and a heightened demand for workers, students like Hamadi are increasingly choosing alternative career-connected pathways over four-year colleges, according to recent reports.
If he could do it all over again, Hamadi said he would try to get his diploma but do it less expensively.
"If I was 18 right now, I would go to community college and get an undergraduate degree by the cheapest means possible," Hamadi said. | 2022-09-12T20:42:55Z | www.cnbc.com | What student loan forgiveness means for borrowers who never graduated | https://www.cnbc.com/2022/09/10/what-student-loan-forgiveness-means-for-borrowers-who-never-graduated.html | https://www.cnbc.com/2022/09/10/what-student-loan-forgiveness-means-for-borrowers-who-never-graduated.html |
Published Sun, Sep 11 202211:00 AM EDT Updated 5 Hours Ago
In some relationships, asking for more or clearer communication is the norm. Friendships don't fall into that category.
Society places a lot more emphasis on romantic partners providing those emotional needs for us versus our friends.
Brian Trager
"It takes effort to do this sort of stuff and a lot of people struggle to really put in the effort of maintaining friendships or struggle with what it really means to be in deep, loving relationships with other people."
Don't lead with what you need, but instead tell them what you're going through, Trager says.
"It can be helpful to focus on your emotions," he says.
You can start by saying, "It's scary for me to ask you this, but I'm going through a tough time and I've been lonely and feeling disconnected."
An in-person conversation or even a phone call would be best, he says: "I don't think asking for these things over text is going to be the most effective." | 2022-09-12T20:43:21Z | www.cnbc.com | How to communicate better with your friends, advice from a therapist | https://www.cnbc.com/2022/09/11/how-to-communicate-better-with-friends-advice-from-a-therapist.html | https://www.cnbc.com/2022/09/11/how-to-communicate-better-with-friends-advice-from-a-therapist.html |
The U.S. and multiple other countries face the gloomy prospects of recession ahead as global central banks raise interest rates to battle inflation, according to Bank of America. In a process the bank calls "synchronized monetary policy tightening," the Federal Reserve, the European Central Bank and their counterparts are willing to sacrifice growth to bring down inflation that has rattled the global economy for more than a year. All totaled, 29 out of 34, or 85%, of major central banks are "tightening now and they are tightening thick and fast," Bank of America said in a client note. Dozens of indicators and trackers the bank follows, covering areas as diverse as industrial momentum and trucking freight in the U.S. and even white liquor sales in China, already "depict a grim outlook for global growth." Bank of America's analysts expect the U.S., Europe, Japan and the U.K. to see a "mild recession." "Unfortunately, the policy setup is not conducive to a turnaround in growth prospects anytime soon," they wrote. "In fact, keeping in mind that Fed tightening cycles, more often than not, end in recessions, it is likely that things take a turn for the worse." For investors, that means taking cover in defensive sectors that do well in downturns. The bank said that "one of the most aggressive tightening episodes in history" is sending warning signs "that appear to be at odds with segments of the investment community which expects a soft landing." The report comes a little more than a week before the Fed is expected to approve a third consecutive 0.75 percentage point interest rate increase that would take benchmark rates up to a range of 3%-3.25%. Last week, the ECB also voted to raise rates three-quarters of a point while policymakers insisted that they don't expect the tightening to result in a recession. Others on Wall Street also are sounding the alarm of what too much tightening will do. In their weekly market commentary, BlackRock strategists said the ECB in particular "isn't acknowledging how it will crush activity further by trying to fight high inflation, in our view. We think the ECB will wake up to this reality sooner than markets expect – but not before it inevitably faces a severe recession." Bank of America's analysts also said they think investors are being too sanguine about the ramifications of central bank policy. Low rates and asset purchases known as quantitative easing helped backstop financial markets during the pandemic fallout, while the reversal of those policies has coincided with a sharp downdraft. The Fed in September stepped up its balance sheet runoff to a maximum $95 billion a month, which Bank of America estimated to equal about a 0.15 percentage point hike each month. "Not only are growth indicators steadfast on a persistent downtrend, the hawkish stance of central banks will sustain the downward pressure on the global growth trajectory, with no inflection in sight," the bank said. "And if we do end up in a recession, remember markets have never bottomed before the start of a recession." Bank of America is advising clients to stick with defensive sectors as the risk of a policy mistake — central banks raising rates even as inflation cools — rises continuously. | 2022-09-12T20:44:48Z | www.cnbc.com | Bank of America warns that investors are ignoring dangers of 'synchronized' policy tightening | https://www.cnbc.com/2022/09/12/bank-of-america-warns-that-investors-are-ignoring-dangers-of-synchronized-policy-tightening.html | https://www.cnbc.com/2022/09/12/bank-of-america-warns-that-investors-are-ignoring-dangers-of-synchronized-policy-tightening.html |
The British pound has slid against the U.S. dollar over the past year, hitting a 37-year low against the greenback last week — and it could weaken even further, according to analysts. Sterling hit $1.1403 on Wednesday — a level not seen since March 1985 — amid dollar strength and mounting concerns over the U.K's economic outlook. This is only the fourth time that the currency has hit the $1.14 level, according to Refinitiv data dating back to 1972. The pound has since pared some declines and was trading at $1.157 against the dollar Friday afternoon in London. "If you look at the sterling since the beginning of the year against the other G-10 currencies, it has obviously not only lost the most ground against the dollar, but it has also actually lost ground against almost every other currency within the group as well," Sonja Marten, chief FX strategist at Germany's DZ Bank, told CNBC Pro. "The only currencies that have been weaker are the Swedish krona and the Japanese yen . So, it's definitely not only dollar strength, but also a question of sterling weakness." The pound's relentless slide this year reflects the enormous challenge facing Liz Truss's new government, at a pivotal moment for the British economy. Inflation in the U.K. is at a 40-year high, with the consumer price index hitting 10.1% in July from a year ago amid Britain's worst cost-of-living crisis in decades. A series of six consecutive rate hikes by the Bank of England — including a 50 basis points rise last month, its largest increase since 1995 — has so far failed to rein in inflation. And Truss' economic agenda, which includes tax cuts and a pledge to review the Bank of England's mandate , has also set her on a collision course with the central bank, compounding market nervousness and hitting sterling. More downside expected Now, market watchers say the pound has even further to slide. "I think it can go further. I do think there's potential for downside depending a little bit now on the news flow," Marten said. She says the pound has the potential to hit $1.10 against the dollar if "things go bad." "In the short term, if things go bad, and that means Liz Truss not managing to capture investor confidence by declaring how she's going to finance her spending and if the Bank of England's mandate been touched. And the whole situation with energy prices remains," she said. "We just moved from $1.23 to $1.15 in two weeks, so I wouldn't rule it out. It's a currency pair that does tend towards large swings." Read more Wall Street pro predicts when the S & P 500 will rally — and reveals how to trade it This chip stock has convincingly beaten its peers this year – and analysts think it can go higher Uranium is 'on a tear' right now. Here are two ETFs to play it Stephen Gallo, European head of FX strategy at BMO Capital Markets, does not see "much relief" for the sterling in the near-term, even if the Bank of England increases the pace of rate hikes. "The way we see it, the UK economy is already headed for some form of a hard economic landing. Although a looser fiscal policy setting may lessen the blow in that regard, it also risks economic overheating and a boom-bust cycle," he said in a note. Sterling's weakness this year has been largely driven by structural factors, he added in an interview with CNBC Pro. Gallo cited a clear peak in the dollar, a considerable cooling of inflation rates in Europe and a clear de-escalation of the war in Ukraine as necessary conditions for the sterling to recover. As such, he sees sterling trading in the $1.15 to $1.18 range in the near-term. Meanwhile, Chang Wei Liang, FX and credit strategist at Singapore's DBS Bank , believes the pound will "tread around the $1.14 and $1.15 level." "We believe the current levels are subject to the BOE continuing to deliver on interest rate hikes to moderate inflation pressures in the U.K.," Chang said. | 2022-09-12T20:45:40Z | www.cnbc.com | Forex pros weigh in on whether the British pound has hit the bottom | https://www.cnbc.com/2022/09/12/forex-pros-weigh-in-on-whether-the-british-pound-has-hit-the-bottom.html | https://www.cnbc.com/2022/09/12/forex-pros-weigh-in-on-whether-the-british-pound-has-hit-the-bottom.html |
Aalyria (pronounced ah-Leer-eeh-ah) said it has an $8.7 million commercial contract with the U.S. Defense Innovation Unit. The company will be led by CEO Chris Taylor, a national security expert who has led other companies that have worked with the government. Taylor's LinkedIn profile says he's the CEO of a company in stealth mode that he founded in November.
Waymo's self-driving car gets a test drive from CNBC's Jennifer Elias | 2022-09-12T20:45:53Z | www.cnbc.com | Google spins out secret hi-speed telecom project called Aalyria | https://www.cnbc.com/2022/09/12/google-spins-out-secret-hi-speed-telecom-project-called-aalyria.html | https://www.cnbc.com/2022/09/12/google-spins-out-secret-hi-speed-telecom-project-called-aalyria.html |
Zuckerberg's shortcomings as CEO are "continuing to derail" the tech giant formerly known as Facebook, according to Bill George, a senior fellow at Harvard Business School and former CEO of medical technology company Medtronic.
Zuckerberg and Meta did not immediately respond to CNBC Make It's request for comment. The Meta CEO is largely responsible for his company's meteoric growth to this point, transforming the company he co-founded in 2004 into a tech giant with a $450.46 billion market cap, as of Monday morning.
In doing so, he helped create the modern-day social media industry — a move he's attempting to replicate now by repositioning his company into the metaverse space. Given his past success, it might be unwise to bet against him, as CNBC's Jim Cramer said on "Squawk Box" in February.
"I know that this is probably out of fashion, I have total faith in Mark Zuckerberg. I think Zuckerberg's going to be able to pull off ... the metaverse," Cramer said, adding that Meta has a track record of rebounding after stock dips, scandal and controversy. "There's some people you have to bet on. And if you go back to 2018 to that horrible summer breakdown ... no one thought these guys could come back."
Still, George says Meta is bound to fail as long as Zuckerberg remains at the helm. Here's why:
At least publicly, Zuckerberg has yet to acknowledge or take responsibility for it, George says — though Zuckerberg did say during a shareholder meeting in May that he expects his company to lose "significant" amounts of money over the next three to five years, as it invests in metaverse technologies.
To an extent, Zuckerberg is known for trusting his own gut over conventional wisdom: It's part of how he built Meta into a multibillion-dollar tech giant. Still, in the early days, he took at least some advice from trusted advisors.
In one instance, a Wall Street Journal investigation last year found that the Meta-owned Instagram platform was contributing to users' mental health problems, particularly in teenage girls. The investigation found that Meta leadership actively chose to ignore the problem, to avoid jeopardizing user engagement and growth.
The decision points to Zuckerberg's desire to prioritize revenue over anything else, George says.
Update: This story has been updated to reflect previous comments from Zuckerberg and CNBC's Jim Cramer. | 2022-09-12T20:46:00Z | www.cnbc.com | Harvard expert: Mark Zuckerberg is 'continuing to derail' Facebook | https://www.cnbc.com/2022/09/12/harvard-expert-mark-zuckerberg-is-continuing-to-derail-facebook.html | https://www.cnbc.com/2022/09/12/harvard-expert-mark-zuckerberg-is-continuing-to-derail-facebook.html |
The August consumer price index is released Tuesday at 8:30 a.m. ET, and it is expected to show inflation is moderating.
The report could be confusing because economists surveyed by Dow Jones expect headline CPI to decline by 0.1%, but is expected to rise by 0.3% excluding energy and fuel.
The report is seen as key for next week's Federal Reserve rate decision, but economists say it is also critical for the longer-term view on interest rates since it could show whether some causes of inflation are receding.
A customer shops for eggs in a Kroger grocery store on August 15, 2022 in Houston, Texas.
The consumer price index is released Tuesday at 8:30 a.m. ET, and that report could be a bit messy since headline inflation is expected to fall while core inflation, excluding energy and food, should rise. The report is also key since it is expected to influence the Federal Reserve's decision on how much to raise interest rates next week — and more importantly in the long term.
CPI for all items is projected to have actually declined by 0.1% month-over-month in August, after a flat reading in July, according to Dow Jones. On an annual basis, headline CPI would then be running at a pace of 8%, down from 8.5% in July.
But excluding gasoline, core CPI is expected to rise by 0.3%, the same as July. On a year-over-year basis, that would make for a 6% increase, even hotter than the 5.9% gain in July.
For the Federal Reserve, the report is widely expected to confirm it needs to keep up its fight against inflation with an interest rate hike next week of 0.75 percentage point, the third in a row. If the inflation data is weaker than expected, some economists say there's an outside chance the Fed could raise by just a half percent.
"I think we're going to see a repeat in terms of air fares and hotel prices. They dragged down the core CPI last month. It looks like air fares will be down 8%," said Markowska. "They were up 40% from March to May. We're just unwinding a portion of that."
"Because of base effects annual core inflation will likely accelerate in the next two reports, which would make uncomfortable headlines for the Fed," wrote Blerina Uruci, chief U.S. economist at T. Rowe Price. She said that it should not matter to Fed officials since they will be more focused on momentum, and will be watching the three-month and six-month annualized pace.
Strategists say the Fed's Sept. 21 rate decision may be affected by the August CPI report, but the details inside that report may be more important for what they say about the longer-term outlook. That could help shape the expectations for the Fed's end or terminal rate when it stops hiking.
Looking to the end game
"This is where we start looking for whether there is a shift in core patterns, where the Fed can ramp down or not," said Diane Swonk, chief economist at KPMG. She expects the Fed to raise the fed funds target range by 75 basis points next week. That would take the fed funds target range to 3% to 3.25%. A basis point is 0.01 percentage point.
This is a key question for markets, since some pros expect the Fed to pause by the end of the year. Others expect a pause early next year, and some investors believe the Fed will begin to reduce interest rates in the second half of next year.
Fed officials, led by Chairman Jerome Powell, have emphasized that the Fed will raise rates and keep them there. Yet, the market is still betting that the Fed will not be as tough as its talk.
"That's above-trend growth at a time when the Fed needs to engineer below trend growth," Markowska said. | 2022-09-12T20:46:43Z | www.cnbc.com | Inflation report could show CPI moderating as gas and travel costs fall | https://www.cnbc.com/2022/09/12/inflation-report-could-show-cpi-moderating-as-gas-and-travel-costs-fall.html | https://www.cnbc.com/2022/09/12/inflation-report-could-show-cpi-moderating-as-gas-and-travel-costs-fall.html |
Eight out of 12 labor unions have reached tentative agreements with the railroad carriers, up from five last week.
But BLET and SMART TD, representing half of all rail workers, tell CNBC there will be no ratification unless quality-of-life issues including vacation, sick days and attendance policies are addressed.
A "cooling off" period expires Friday, at which time workers can strike, but railroad representatives stress the negotiations are ongoing and a strike is not inevitable.
Roughly 40% of the nation's long-distance trade moves by rails and the idling of 7,000 trains daily would trigger retail product shortages and widespread manufacturing shutdowns.
Railroad worker strike could cost the U.S. economy $2 billion everyday
Two of the largest railroad unions in negotiations with railroad carriers have drawn a line in the sand: They are demanding more quality-of-life provisions be put into the contract, covering attendance policies, vacation and sick days, or they will strike.
The Brotherhood of Locomotive Engineers and Trainmen and the SMART Transportation Division represent half of railroad union workers.
Eight out of the 12 unions have reached tentative agreements with the railroad carriers, according to the National Carriers' Conference Committee. They did not negotiate the quality-of-life provisions, sources familiar with the negotiations tell CNBC. The unions have what are called "Me Too" agreements, which means whatever benefits the BLET and the SMART unions agree to in their contracts with the carriers, other unions' members receive.
In July, President Joe Biden appointed a Presidential Emergency Board in hopes of averting a strike and making recommendations that railroads and labor unions could agree on.
Attendance policies and staffing have been a point of contention over the last two years of this negotiation. More than 700 union workers quit after BNSF, a wholly owned subsidiary of Berkshire Hathaway, instituted a points-based attendance system in February. The system was revised in May but union workers say the modifications did not fix the safety issues calling it "brutal." Labor sources tell CNBC employees would be penalized for taking a day off to go to their parent's funeral.
A maintenance-of-way worker walks alongside a segment of newly laid railroad track on the Burlington Northern Santa Fe (BNSF) Railway Co. Southern Transcontinental line in Alva, Oklahoma, U.S., on Wednesday, Aug. 19, 2015.
While rails say they have been hiring aggressively amid the supply chain struggles, the U.S. Surface Transportation Board has reported the largest freight railroads in the U.S. have reduced their workforce by 29% in the last six years.
Around 40% of the nation's long-distance trade is moved by rail, more than any other form of transportation. If the unions strike, more than 7,000 trains would be idled and the rail industry has estimated it would cost the economy up to $2 billion per day.
Starting Monday, the railroads are securing and managing security-sensitive freight and hazmat cargo such as chlorine used by public water departments to purify drinking water and chemicals used in fertilizers in the event of a strike. Norfolk Southern issued an alert to customers on the measures.
The Association of American Railroads says the carriers are following federal regulations.
"Operational changes required to prepare for a safe, orderly suspension were delayed as long as possible," a railroad industry spokesman wrote in an email to CNBC. "With less than a week away from a potential service interruption, carriers are obligated to take appropriate actions to prepare, which include making plans for handling HAZMAT shipments, as well as other freight that may be impacted if service must be reduced or stopped. Notification to customers is an essential part of that contingency planning."
A rail labor union spokesperson told CNBC: "The railroads cannot legally lock us out so they are resorting to the extortion of the shippers. Impacting the supply chain so the shippers will go to Congress demanding intervention. Congress must not cave."
The last time Congress intervened was in 1992 after the machinists union struck CSX in a dispute over a new labor contract. Then U.S. President George H.W. Bush called on Congress to act quickly. Bush signed the return-to-work bill after the two-day strike shut down nationwide railroad freight service.
Correction: Eight out of the 12 unions have reached tentative agreements with the railroad carriers, according to the National Carriers' Conference Committee. An earlier version misstated a figure. | 2022-09-12T20:46:49Z | www.cnbc.com | Large railroad labor unions move closer to a strike | https://www.cnbc.com/2022/09/12/large-rail-labor-unions-move-closer-to-a-strike.html | https://www.cnbc.com/2022/09/12/large-rail-labor-unions-move-closer-to-a-strike.html |
The NBA star could make surprise visits at some of the seminars.
To reach young adults who could benefit from learning about money matters, Harden's Impact 13 Foundation is partnering with financial advisor Jordan Awoye, managing partner of Awoye Capital in Babylon, New York, on what is billed as a "financial literacy tour."
Sarat Sethi: Personal finance should be taught in school
The NBA star could make surprise visits at some of the seminars, said Awoye, who has visited six institutions — including Towson University in Maryland and Norfolk State University in Virginia — as part of the tour.
Understanding how to manage money makes a difference, research shows. People who scored above the median on a seven-question financial literacy quiz were more likely to make ends meet than those whose money know-how is more limited, according to a study from FINRA's Investor Education Foundation.
For example, those who scored higher in the quiz spent less than their income (53% versus 35%) than those who fared less well, and they set aside three months' worth of emergency funds at higher levels (65% versus 42%). They also were more likely to have done some future planning by calculating retirement savings needs (52% versus 29%) and opening a retirement account (70% versus 43%).
With many of the country's youth reaching adulthood with a lack knowledge about money matters, some state legislatures have passed laws requiring public school systems to teach personal finance. Fifteen states guarantee, or have committed to guaranteeing, that all high school students will get a stand-alone personal finance course, according to Next Gen Personal Finance's 2022 State of Financial Education report. Other states have the curriculum baked into another class (i.e., economics) or offer it as an elective. Still others have no personal finance requirement at all.
Meanwhile, Americans are shouldering $890 billion in credit card debt, which comes with interest rates that average more than 18%. Additionally, 56% of U.S. adults would be unable to cover an unexpected $1,000 bill with accrued savings, according to a Bankrate survey.
In other words, there's room for a lot of improvement when it comes to financial literacy. | 2022-09-12T20:46:56Z | www.cnbc.com | NBA star James Harden throws his support behind financial literacy | https://www.cnbc.com/2022/09/12/nba-star-james-harden-throws-his-support-behind-financial-literacy.html | https://www.cnbc.com/2022/09/12/nba-star-james-harden-throws-his-support-behind-financial-literacy.html |
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