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The convergence of a slew of inflation-related metrics around the 5% level could spell big trouble for investors ahead, according to Bank of America. After living for two decades in what essentially was a 2% world, the elevation of inflation rates , wages, bond yields, and benchmark interest rates are surging and could stay there for a while. That's a new climate for financial markets that had been feasting on moderation and stimulus from the Federal Reserve that has gone away. "Reversion to '5%' could break the market," Bank of America analysts said in a note analyzing the new environment. "Historically, it takes an average of 10 years for a developed economy to return to 2% inflation [after] the 5% threshold is breached," they added. The move from an environment where inflation, wage growth and longer-term bond yields in particular hung around the 2% level has come to an end as multiple factors have pushed those metrics to points they haven't seen in decades. BofA thinks unemployment also will begin drifting up to that 5% level. In response to rising prices, the Fed has pushed up benchmark rates to a 3%-3.25% range that in turn has sent Treasury yields soaring. Along with the rate hikes, the Fed is shrinking the size of the asset holdings on its balance sheet — $156 billion since early June, and more when factoring in the $120 billion a month bond-buying pace that held until earlier this year. Reversing those changes won't happen overnight, the bank said in the report. For investors, that means a paradigm shift from the time-honored 60/40 portfolio split between stocks and bonds. That particularly combination lost more than 27% in the first three quarters of 2022, the worst performance ever, according to Bank of America calculations. A better combination for the future is one that is not correlated to the traditional mix as tighter financial conditions put pressure on cyclical stocks have benefited during the era of low inflation and bond yields. Bank of America favors energy, staples and utilities in this environment. "We expect 60/40 to underperform long term as de-globalization, energy transformation, and aging demographics push yields and inflation higher," the note said. "Investors should consider rotating out of exposures that move with 60/40 and into exposures that offer more of a hedge." The firm noted that two decades of low growth, inflation, interest rates and yields "yields created $70 trillion of growth stocks and government bonds priced for a minimal growth regime." The analysts cautioned that there could be short-term rallies in things such as tech stocks and government bonds, but that investors should use those occasions to move into "value, energy and other less correlated assets." | 2022-10-11T15:24:45Z | www.cnbc.com | How a return to a '5% world' could break the market, Bank of America says | https://www.cnbc.com/2022/10/11/how-a-return-to-a-5percent-world-could-break-the-market-bank-of-america-says.html | https://www.cnbc.com/2022/10/11/how-a-return-to-a-5percent-world-could-break-the-market-bank-of-america-says.html |
The G7 condemned Russia's escalatory steps like the partial mobilization Russian President Vladimir Putin announced last month and the country's "irresponsible nuclear rhetoric."
Russia was a member of the G-7, but was kicked out after it annexed the Ukrainian region of Crimea in 2014. The Kerch Strait Bridge connecting Russia to Crimea was damaged in a bombing on Saturday.
The G-7 condemned steps Russia has taken to escalate its war in Ukraine. They include the partial mobilization Russian President Vladimir Putin announced last month and Moscow's "irresponsible nuclear rhetoric" that the group said "is putting global peace and security at risk." Russia will face "severe consequences" if it uses chemical, biological or nuclear weapons, the G-7 said.
Putin has hinted at threats to use nuclear weapons. In a televised speech last month where he addressed the partial mobilization, Putin said he would "certainly use all the means at our disposal to protect Russia and our people." He added that he was not bluffing.
The White House has repeatedly said it takes Russia's threats of nuclear war seriously, but does not see indications of a present threat. Biden on Thursday warned of "the prospect of Armageddon" if Russia uses its nuclear weapons. | 2022-10-11T16:52:06Z | www.cnbc.com | Ukraine news: G-7 leaders pledge support against Russia after Zelenskyy speech | https://www.cnbc.com/2022/10/11/ukraine-news-g-7-leaders-pledge-support-against-russia-after-zelenskyy-speech.html | https://www.cnbc.com/2022/10/11/ukraine-news-g-7-leaders-pledge-support-against-russia-after-zelenskyy-speech.html |
Walmart 's subscription business could be worth around $45 billion dollars alone as estimates show a jump in interest, according to Morgan Stanley. Analyst Simeon Gutman said the strength of Walmart+ may not be fully reflected in the stock's current trading value. The firm has a price target of $150 on the big-box retailer, which represents about 16% upside from Monday's close. "We're not sure the stock is getting full credit for Walmart's progress in growing membership and for the recurring income stream it generates," he said in a note to clients Monday. Gutman said Walmart+ could be worth $45 billion on a standalone basis, which would add about $17 to the company's share price if the service wasn't priced in on its current value. But he cautioned against suggesting Walmart+ should be valued at this specific number given it's unclear what the true worth is or what is currently priced in. Instead, he said it should simply be used as a way to show the potential underappreciation of the value that the service brings to the company. The service, which debuted in September 2020, includes free shipping on online purchases, free store deliveries and discounts at gas stations. Paramount Plus, the streaming service for the media conglomerate, was added in September for members . That addition is believed to have had an "immediate impact" and helped the record growth in September, though the survey did not suggest the additional alone was a reason for people joining, he said. Walmart+ is believed to have about 18.6 million subscribers after adding 1.8 million from the last estimate published in early September, according to Morgan Stanley's AlphaWise survey. That's the largest increase between month-to-month estimates since August 2021 – and about seven times higher than the average monthly growth between estimates from August 2021 to July 2022. Gutman said if the company disclosed the number of members who subscribe to Walmart+, the official data could provide upside for the stock. The analyst said he believed the data may be coming because leadership seems more willing to share details on the service in public comments as of late. Shares were up 2.3% during midday trading Tuesday. — CNBC's Michael Bloom contributed to this report. | 2022-10-11T16:52:12Z | www.cnbc.com | Walmart+ could be worth $45 billion as estimated subscriber base grows, Morgan Stanley says | https://www.cnbc.com/2022/10/11/walmart-could-be-worth-45-billion-as-estimated-subscriber-base-grows-morgan-stanley-says.html | https://www.cnbc.com/2022/10/11/walmart-could-be-worth-45-billion-as-estimated-subscriber-base-grows-morgan-stanley-says.html |
Investors moving to cash could be making a costly mistake, according to UBS. Market volatility has prompted many to flee stocks, with some $89 billion pouring into money market funds the week through Oct. 5, the firm found. It was the largest weekly inflow into cash since April 2020. "We continue to advise against retreating to the sidelines, especially given the drag on cash from high inflation and the challenge of timing a return to markets without missing out on rebounds," UBS Global Wealth Management chief investment officer Mark Haefele wrote in a note Tuesday. That timing challenge can be evidenced by the 5.6% rally in the S & P 500 that occurred in just two days early last week, he said. The market had a dismal September , with the Dow Jones Industrial Average closing below 29,000 for the first time since November 2020 and the S & P having its worst month since March 2020. Historical data also suggests that waiting out the downturn can be riskier than investing, Haefele pointed out. "Since 1960, a strategy that waited for a 10% correction before buying the S & P 500, and then sold at a new all-time high, would have underperformed a buy-and-hold strategy by 80 times," he said. To position for long-term performance and mitigate for near-term risks, investors should take a selective approach to adding exposure, Haefele said. That includes choosing parts of the market that are more resilient in the event of slowing economic activity, such as health care and consumer staples. For diversification, seek uncorrelated sources of returns, like hedge funds and private markets. Long-term opportunities can be found in energy, food, the environment and technology, he said. — CNBC's Michael Bloom contributed reporting. | 2022-10-11T17:52:36Z | www.cnbc.com | Investors flooding into cash right now are making the wrong move, UBS says | https://www.cnbc.com/2022/10/11/investors-flooding-into-cash-right-now-are-making-the-wrong-move-ubs-says.html | https://www.cnbc.com/2022/10/11/investors-flooding-into-cash-right-now-are-making-the-wrong-move-ubs-says.html |
Ritholtz Wealth Management CEO Josh Brown said Tuesday that investors should put little weight on the Federal Reserve's predictions about rate hikes after the central bank's missteps over the past year. "This is a body of people who one year ago today were telling us, based on their forecasts, that there would be no rate hikes in 2022. None," Brown said on " Halftime Report ." "We have just had the fastest, most severe rate hiking cycle that most people in the market have ever seen." "They have no idea, and they have zero credibility. The only thing worse than the Fed's forecast is no forecast, which is why cling to these things, but in reality they don't know what they're going to do," he added. The Federal Reserve has implemented three consecutive rate hikes of 75 basis points, or three-quarters of one percent. The central bank is widely expected to do another hike of that size at its November meeting. At its last meeting, the Fed's dot plot showed its benchmark interest rate rising above 4.5% next yea r compared to a range of 3% to 3.25% currently. The rapid rate hikes come as inflation has stayed stubbornly high throughout 2022 and Fed officials have abandoned their previous position that the price increases would prove "transitory." Brown compared the central bank to a basketball team that has lost control of the ball but doesn't yet realize they need to play defense. "It's almost like a contest: How quickly can we cause a financial crisis so that we have the excuse to stop ratcheting up the hawkishness and the expectations of more rate hikes," he said. Brown did say that the Fed's rate hikes appear to be working to control inflation, describing the housing market as "frozen solid" and pointing to credit card data as proof that spending was starting to slow in other areas. However, he said that the labor market will be last to show impact of rate hikes because companies are reluctant to make layoffs after having difficulty hiring over the prior year and a half. | 2022-10-11T17:52:43Z | www.cnbc.com | Josh Brown says the Fed has 'zero credibility' after big miss on 2022 rate hike forecasts | https://www.cnbc.com/2022/10/11/josh-brown-says-the-fed-has-zero-credibility-after-big-miss-on-2022-rate-hike-forecasts.html | https://www.cnbc.com/2022/10/11/josh-brown-says-the-fed-has-zero-credibility-after-big-miss-on-2022-rate-hike-forecasts.html |
This ETF's focus on total return has made it a rare winner over the past year. Here's how it works
Slow and steady is not always in fashion on Wall Street, but one ETF's strategy for consistent returns has protected its investors during a volatile market and attracted big inflows this year. The Core Alternative ETF (CCOR) is one of the few large funds on the market that has performed well over the past 12 months without focusing solely on energy or inverse bets. "Our goal is to have positive absolute returns regardless of the direction of the market," said Daniel Gamache, executive director at Core Alternative Capital. The fund has a portfolio of individual stocks that is offset by put options on the S & P 500. It has delivered a total return of more than 3% over the past year, according to FactSet, even as equity markets have fallen into a bear market. For 2022, it has fallen less than 1% and brought in more than $250 million of fund flows, according to FactSet. "We use the puts to be our driver of returns through down markets and through volatile sideways or choppy markets, while the equities are obviously the driver of returns in bull markets," Gamache said. The put options used by the fund are derivatives that give the holder the right sell an underlying asset at a set price, and the options have a skewed payoff profile that helps this portfolio work. If the market rises, and the put option isn't used, the holder doesn't lose any money beyond the fee paid to purchase the option in the first place. That certainly is a drag on a portfolio in a bull market, but not enough to sink a fund if the equity side is performing well. However, if the market declines sharply, the put option can make the holder a big winner. Gamache said the put projections are adjusted often — sometimes even daily — to keep the strike price close to the index and capture almost all of the potential profit from a market decline. On the long side, the firm looks for "dividend-growth style, quality biased companies," Gamache said, but he stressed that investors should not look at the fund as a low-beta equity fund. Its top holdings include energy giants Exxon Mobil and Chevron , as well as Eli Lilly . The fund has about $500 million in net assets and an expense ratio of 1.07%. To be sure, the fund's focus on total return and downside protection will likely lead to underperformance of the S & P 500 during up markets. In these periods, the fund has underperformed the S & P 500 going back to its inception in 2017. Gamache said that some clients view the fund as a piece of their equity portfolio while others see it in part as fixed income proxy, given its total return and downside protection focus. | 2022-10-11T19:24:06Z | www.cnbc.com | This ETF's focus on total return has made it a rare winner over the past year | https://www.cnbc.com/2022/10/11/this-etfs-focus-on-total-return-has-made-it-a-rare-winner-over-the-past-year.html | https://www.cnbc.com/2022/10/11/this-etfs-focus-on-total-return-has-made-it-a-rare-winner-over-the-past-year.html |
: "I don't really care for that group, but you know what, I think anything can bounce in that business."
: "I don't think that group is doing that well."
: "I do think that it represents great assets, but if the stock's going to reflect that in the near term, I don't know."
: "The cannabis space, it's still what I call too early."
: "It's so expensive. ... I think it's fine, not great, not bad."
: "I think that that is a good stock to own." | 2022-10-11T23:57:53Z | www.cnbc.com | Cramer's lightning round: Service Corporation International is a good stock to own | https://www.cnbc.com/2022/10/11/cramers-lightning-round-service-corporation-international-is-a-good-stock-to-own.html | https://www.cnbc.com/2022/10/11/cramers-lightning-round-service-corporation-international-is-a-good-stock-to-own.html |
Nick Griffin, chief investment officer at Munro Partners, is so bullish on one stock, he says it's a better bet than U.S. Treasurys. The company is Microsoft , which he said has a "really long runway" ahead. "Microsoft is obviously … very resilient and it's probably the last thing any business is going to turn off," said Griffin, whose firm has $4.8 billion in assets under management. "It has pricing power with things like Microsoft Teams, and they still haven't actually charged you fully yet. And it has protection on the cost side because it doesn't have input costs as a software company," he told CNBC's "Street Signs Asia" Monday. All of these factors, he said, will lead to double-digit earnings-per-share growth for Microsoft for "at least" the next five years. "It's cheaper than a U.S. Treasury. It grows faster than the U.S. Treasury, and it's probably got a better balance sheet than the U.S. Treasury. So from our point of view, it's a fairly safe place to [put your] cash," Griffin. Short-term U.S. Treasurys have surged in popularity among investors of late amid rising yields. Griffin's Munro Global Growth Fund has outperformed the S & P 500 this year, although it was down around 15% as of Oct. 7. The S & P 500 saw a roughly 23% tumble over the same period. The fund, much like the S & P 500, is heavily weighted toward tech. Its top holdings include Microsoft, Alphabet , Amazon and other growth stocks. Tech stocks have taken a beating this year as investors fled the growth part of the market amid volatility. Microsoft hasn't escaped, and is down over 30% year-to-date. Still, analysts have struck an optimistic tone on the stock recently . Some 90% of analysts covering the company give it a buy rating, and an average price target of $321.97 — or 40% upside — according to FactSet data. It comes as some on Wall Street turn bullish on certain corners of the tech sector , despite the Nasdaq closing at its lowest level in two years on Monday. 'Fortress' balance sheets Griffin's current investing strategy includes the owning large-cap stocks with "fortress balance sheets." "Longer term, we know that these companies are positioned to benefit from some of the most significant structural changes occurring in the world and hence remain confident that these companies can grow earnings through the current uncertainties," he said. He named Alphabet as one example of a "fairly safe" investment with an "incredibly strong" balance sheet, adding that markets had underestimated its fast-growing cloud business. Munro Partners has, however, reduced overall exposure to equities in the third quarter, from an average of 60% to 40%. "Thanks to gains on short selling, hedging and currencies the Fund was up roughly 3% for the quarter and up 1.5% for September," Griffin added. | 2022-10-11T23:57:59Z | www.cnbc.com | This stock is a better bet than even U.S. Treasurys, fund manager says | https://www.cnbc.com/2022/10/12/-this-stock-is-a-better-bet-than-even-us-treasurys-fund-manager-says.html | https://www.cnbc.com/2022/10/12/-this-stock-is-a-better-bet-than-even-us-treasurys-fund-manager-says.html |
The U.S. government has introduced some of its most sweeping export controls yet aiming to cut China off from advanced semiconductors. Analysts said the move could hobble China's domestic chip industry.
The United States, while strong in many areas of the market, has lost its dominance in manufacturing. Over the last 15 years or so, Taiwan's TSMC
and South Korea's Samsung have come to dominate the manufacturing of the world's most advanced semiconductors. Intel
, the United States' largest chipmaker, fell far behind.
Reinventing the wheel will be far more costly now (for China).
Takshashila Institution
underscores the complexities of the semiconductor supply chain. | 2022-10-11T23:58:18Z | www.cnbc.com | US chip export restrictions could hobble China's semiconductor goals | https://www.cnbc.com/2022/10/12/us-chip-export-restrictions-could-hobble-chinas-semiconductor-goals.html | https://www.cnbc.com/2022/10/12/us-chip-export-restrictions-could-hobble-chinas-semiconductor-goals.html |
Mahathir Mohammad, the former Prime Minister of Malaysia, during a press conference in Putrajaya, Malaysia on August 4, 2022.
I wouldn't want to be prime minister for the third time: Malaysia's Mahathir
I share Dr Mahathir's view that we must eradicate corruption in order for the country to progress. This means dealing with all forms of corruption.
Malaysia opposition leader
Najib will get better treatment in prison than I did, says Anwar Ibrahim
We expect Malaysia's budget will be 'slightly less expansionary,' says economist | 2022-10-12T03:00:45Z | www.cnbc.com | Malaysia should focus on inflation and its economy — not elections: Mahathir, Anwar | https://www.cnbc.com/2022/10/12/malaysia-should-focus-on-inflation-and-its-economy-not-elections-mahathir-anwar.html | https://www.cnbc.com/2022/10/12/malaysia-should-focus-on-inflation-and-its-economy-not-elections-mahathir-anwar.html |
U.S stocks endured a miserable start to the week as investors weighed the prospect of higher interest rates for longer and a recession warning from JPMorgan CEO Jamie Dimon. The market has turned decidedly bearish — as can be seen in a lack of activity among long-only hedge funds, said Wall Street veteran Farzin Azarm. Instead, he's seeing a lot of short selling in the market, particularly in the growth sector. "Nobody is long growth, nobody has long, risky assets. Everyone is hiding in defensives. Everyone is holding on to a massive wad of cash and more importantly, people are waiting for a panic to happen," Azarm, managing director at Mizuho Americas, told CNBC's "Street Signs Asia" on Tuesday. Dimon warned Monday that the U.S. was likely to enter a recession over the next six to nine months, and that the S & P 500 could fall by "another easy 20%." His remarks came as the stock market kicked off a big week with third-quarter bank earnings and upcoming key economic data, including a highly anticipated inflation print on Thursday. But Azarm says a panic is "not going to happen." Indeed, he said there were "some signs" the Fed could pivot a little at its November meeting, and he would not be surprised if the central bank hikes by 50 basis points, rather than the 75 basis points that the market is expecting. Three stocks he loves Azarm could well be one of the few bulls in an otherwise bearish market right now. "When there's blood on the streets, that's when you want to be out there buying," he said. "There's always going to be short term pain — that's the way it works." Unsurprisingly, he's a fan of growth names. "I think the positioning on growth and high multiple names is so low. If there's going to be a risk to the upside, it's going to be those names," he said. One of Azarm's top picks is cybersecurity firm Palo Alto . He likes the company's 44% growth in billings in the fourth quarter, which he described as "solid" free cash flow. Palo Alto also had a very strong fourth quarter, according to Azarm, and has an "unbelievable" margin outlook going into 2023. "If I want to dabble in growth, this is one name that I want to be in," he added. Ride hailing firm Uber is another name that Azarm likes. He said the company has a dominant market share and is delivering on both its mobility and delivery businesses. "You are looking at a very cheap company with a solid management," he said. Chinese e-commerce giant JD.com also made his list, as he expects China to pump more stimulus into the economy heading into the 20 th Party Congress — China's biggest political event of the year. "I love JD more than at any other time. I think some of these names are getting punished more than they should be," he said. | 2022-10-12T03:00:52Z | www.cnbc.com | Market veteran loves these growth stocks to navigate stock market pain | https://www.cnbc.com/2022/10/12/market-veteran-loves-these-growth-stocks-to-navigate-stock-market-pain.html | https://www.cnbc.com/2022/10/12/market-veteran-loves-these-growth-stocks-to-navigate-stock-market-pain.html |
Young Iranians are frustrated by decades of economic mismanagement alongside the impact of international sanctions and they hold the Iranian leadership accountable...
Royal Institute of International Affairs
Iranians take part in a pro-government rally in Tajrish square north of Tehran, on October 5, 2022, condemning recent anti-government protests over the death of Mahsa Amini. Anti-government uprisings are to remain a sticking point and increase in frequency in Iran's political landscape as dissatisfaction with other factors like the country's economic conditions surface, according to analysts.
This is very much a turning point for the Islamic Republic. The social movement we see underway today has the capacity to grow and continue.
economics professor, Virginia Technology | 2022-10-12T04:32:07Z | www.cnbc.com | No hope for the future: Economic struggles add fuel to Iran's protests | https://www.cnbc.com/2022/10/12/no-hope-for-the-future-economic-struggles-add-fuel-to-irans-protests-.html | https://www.cnbc.com/2022/10/12/no-hope-for-the-future-economic-struggles-add-fuel-to-irans-protests-.html |
While the Bank of England said it would expand its bond purchases, Governor Andrew Bailey stressed that the bailout would end on Friday. He reminded fund managers that they had only three days left to rebalance their positions.
UK 30-year Gilts fell in response to the initial central bank intervention at the end of September, but have gradually gone up recently and are now close to the 5.1% peak they hit before the BoE initially stepped in to shore up the market.
UK pension portfolio concerns the market. As a result of the sudden and sharp rise in Treasury yields, Treasury and swap assets held in these portfolios have suffered losses, as well as an increase in their leverage.
On Tuesday, Britain's Pensions and Lifetime Savings Association (PLSA) issued a statement, saying "a key concern of pension funds since the Bank of England's intervention has been that the period of purchasing should not be ended too soon, for example, many feel it should be extended to the next fiscal event on October 31 and possibly beyond, or if purchasing is ended, that additional measures should be put in place to manage market volatility."
Several market analysts believe that a two-week bond purchase operation is not sufficient. Pension portfolios are currently experiencing liquidity issues, however, recent increases in yield have made it more difficult for them to meet their targets.
According to Royal Bank of Canada analysts, the market is more concerned about the actual actions taken by the central bank than the statement itself. Although the maximum auction size was raised to 10 billion pounds in Monday's operation the BoE bought only 853 million pounds' worth of debt.
Governor Bailey stressed that the program was part of the BoE's financial stability operations, not a monetary policy tool. The hawkish remarks made investors worry that once the central bank ends its bond purchases on Friday, market instability will increase further.
The British pound fell against the U.S. dollar, giving up gains made earlier.
Investors believe that the key to market instability is still the Treasury's massive tax cuts. And whether the Truss government can rebuild credibility through the end-of-month release, and fiscal policy forecast report is the focus of market attention.
The UK Treasury has been emphasizing economic growth as its goal. However, this week Fitch Ratings downgraded the UK's economic forecast for 2023, arguing that GDP will fall by 1% next year.
Many investors are watching closely to see if the tension in the U.K. market will spill over into the U.S. market and have a ripple effect on global financial stability. As Tobias Adrian stated in a recent interview with CNBC, the current risk to global financial stability is indeed on the rise.
The Financial Counsellor and Director of the Monetary and Capital Markets Department of the International Monetary Fund (IMF)
"The financial stability risks that you're alluding to, those are very elevated, they are only higher in times of acute crisis, such as the 2008 crisis, the 2020 COVID crisis or the euro crisis. So yes, we are in a very, very stressed moment, we do hope that we will avoid a systemic event, but the likelihood is certainly elevated at this point. " | 2022-10-12T07:34:45Z | www.cnbc.com | CCTV Script 12/10/22 | https://www.cnbc.com/2022/10/12/cctv-script-12/10/22.html | https://www.cnbc.com/2022/10/12/cctv-script-12/10/22.html |
When demand was weaker in the pandemic, United experimented with its route map, offering destinations such as Palma de Mallorca in Spain and Ponta Delgada in Portugal's Azores. Those flights are returning though service to Bergen, Norway didn't make the cut for 2023.
United said Wednesday it will start flights on May 25 between San Francisco and Rome on a 777-200ER, part of the carrier's big investment in service to Italy. On the same day, it will start seasonal service to Shannon, Ireland from Chicago O'Hare International Airport on a Boeing 757 and daily flights to Barcelona from Chicago on a 787 Dreamliner.
On March 25, United will start service between Newark and Dubai on a Boeing 777-200ER, flights it announced last month under a new partnership with Emirates.
Its additions include a nonstop from to Geneva, more London service and a resumption of daily Berlin flights, all from New York's John F. Kennedy International Airport. | 2022-10-12T12:44:02Z | www.cnbc.com | United adds new trans-Atlantic flights for summer 2023 in bet on travel recovery | https://www.cnbc.com/2022/10/12/united-airlines-grows-summer-europe-travel-schedule.html | https://www.cnbc.com/2022/10/12/united-airlines-grows-summer-europe-travel-schedule.html |
Excluding food, energy and trade services, the index increased 0.4% for the month and 5.6% from a year ago.
Wholesale prices rise 0.4% in September, higher than expectations
A worker installs the instrument cluster for the Ford Motor Co. battery powered F-150 Lightning trucks under production at their Rouge Electric Vehicle Center in Dearborn, Michigan on September 20, 2022. | 2022-10-12T13:40:54Z | www.cnbc.com | Producer price index September 2022: | https://www.cnbc.com/2022/10/12/producer-price-index-september-2022.html | https://www.cnbc.com/2022/10/12/producer-price-index-september-2022.html |
Tesla is a prime target for short-selling as the stock's chart pattern peaks, said Katie Stockton, founder of Fairlead Strategies. "We actually are recommending shorting Tesla," she said on CNBC's "Worldwide Exchange." "And I have to say that because we have a short-term [chart] breakdown – it's a significant loss of relevant strength that we've seen, and of course momentum has deteriorated." Tesla fell another 2.9% Tuesday, bringing the year-to-date loss to about 46%, worse than the Nasdaq Composite's 34% decline. Stockton said it's risky to hold Tesla, and that it will probably continue to weaken. "If you take a step back and look at the long-term picture of Tesla, you'll see what looks like a topping formation, so, to us, that holds a lot of risk," she said. "Maybe not in the very, very near term, but beyond the very near term, we do think that we'll see some additional downside leadership from Tesla." By comparison, Stockton said there is value in oil and energy stocks. The electric vehicle industry has become increasingly crowded in recent years, as legacy automakers General Motors and Ford have turned away from internal combustion engine powertrains. Tesla has also faced turmoil surrounding founder Elon Musk's on-again, off-again plan to buy Twitter, pledging to use some of his Tesla holding to finance the deal, which may still end in litigation . Meanwhile, rank-and-file staffers have balked at requirements implemented last spring to return to the office, saying Tesla does not have space or enough resources for all of its staff to work in person , sources inside the company told CNBC. Musk also announced the company was shedding about 10% of its workforce in June, around the the time he expressed a "super bad feeling" about the economy. In Tesla's most recent quarter, earnings per share beat expectations while revenue came in lower than anticipated . The company, which has moved its headquarters to Austin, Texas from California, also posted lower automotive gross margins than the prior quarter and the same quarter a year ago, citing inflation and more competition for parts. Watch Stockton's full interview: | 2022-10-12T14:15:18Z | www.cnbc.com | Chart analyst Katie Stockton says short Tesla, sees a 'topping formation' | https://www.cnbc.com/2022/10/12/chart-analyst-katie-stockton-says-short-tesla-sees-a-topping-formation.html | https://www.cnbc.com/2022/10/12/chart-analyst-katie-stockton-says-short-tesla-sees-a-topping-formation.html |
Satya Nadella, chief executive officer of Microsoft Corp., speaks during a panel session on day two of the World Economic Forum in Davos, Switzerland, on May 24, 2022.
is launching a simple graphic design app called Designer that will be available for free and as part of Office productivity software subscriptions, the company said Wednesday.
Microsoft has sought to demonstrate the value of Office subscriptions by adding new capabilities, and earlier this year it raised the prices of some bundles aimed at businesses. Office controls the market, and companies are constantly attempting to topple the leader in the category. The closest competitor is Google
. On Tuesday Google Cloud CEO Thomas Kurian said Workspace had more than 8 million paying subscribers, up from over 6 million as of April 2020.
The launch of Designer might also make Microsoft bump up against Adobe
, which fields the free Adobe Express tool that features templates and stock images. Canva is "where beginners get started before they come to Adobe," Jonathan Vaas, Adobe's vice president of investor relations, said at a Bank of America event in January.
But Microsoft has a close partnership with Adobe, and the two companies have more than 30 product integrations. The Microsoft spokesperson did not immediately respond to a request for comment on what Designer means for its Adobe relationship.
Two-minute drill: MSFT, UPS & PXD | 2022-10-12T14:15:30Z | www.cnbc.com | Microsoft launches Designer, its answer to highly valued startup Canva | https://www.cnbc.com/2022/10/12/microsoft-launches-designer-its-answer-to-highly-valued-startup-canva.html | https://www.cnbc.com/2022/10/12/microsoft-launches-designer-its-answer-to-highly-valued-startup-canva.html |
Surface Pro 9, Surface Laptop 5 and Surface Studio 2+.
on Wednesday unveiled three Surface computers, as the company celebrates the 10th anniversary of the Surface tablet.
The Surface Pro 9 is Microsoft's cross between a laptop and tablet. It runs on an Intel
12th-generation processor and now has optional 5G connectivity. The 12th generation should be considerably faster than Intel's 11th-generation processor, which is what powered the Pro 8. | 2022-10-12T14:15:36Z | www.cnbc.com | Microsoft unveils three new Surface computers: laptop, tablet and PC | https://www.cnbc.com/2022/10/12/microsoft-unveils-three-new-surface-computers-laptop-tablet-and-pc.html | https://www.cnbc.com/2022/10/12/microsoft-unveils-three-new-surface-computers-laptop-tablet-and-pc.html |
Biden threatens 'consequences' for Saudi Arabia after OPEC cut, but his options are limited
Oil producer group OPEC and its allied partners in early October announced its largest supply cut since 2020, to the tune of 2 million barrels per day from November.
US President Joe Biden and Saudi Crown Prince Mohammed bin Salman arrive for the family photo during the Jeddah Security and Development Summit (GCC+3) at a hotel in Saudi Arabia's Red Sea coastal city of Jeddah on July 16, 2022.
Weapons and anti-trust laws
The Saudi-U.S. relationship was founded, broadly speaking, on the principle of energy for security. Washington has since the 1940s provided billions of dollars in military and security aid to Saudi Arabia. But in recent years, and particularly since the Obama administration began making diplomatic inroads with Iran, Riyadh feels that the U.S. commitment to its security has waned.
In an earlier interview with CNBC, Sen. Chris Murphy, D-Conn, asked, "What's the point of looking the other way when the Saudis chop up journalists and repress political speech inside Saudi Arabia if when the chips are down, the Saudis effectively choose the Russians over the U.S.?"
Even Sen. Bernie Sanders, I-Vt., weighed in, demanding in a tweet that, "If Saudi Arabia, one of the worst violators of human rights in the world, wants to partner with Russia to jack up US gas prices, it can get Putin to defend its monarchy. We must pull all US troops out of Saudi Arabia, stop selling them weapons & end its price-fixing oil cartel."
One is the NOPEC bill, which stands for No Oil Producing and Exporting Cartels. This would classify OPEC as a cartel and subject its members to anti-trust legislation.
"The White House has few good options despite Biden's warning of 'consequences' after the cut," he said, noting U.S. lawmakers' threats of anti-trust legislation and removal of U.S. military assets from Saudi Arabia.
While both courses of action would send a clear message, this could backfire for both the U.S. and for crude prices.
Democrats rally against Saudi Arabia after OPEC+ slashes oil production
"In short, a breakdown in U.S.-Saudi relations would mean a higher Middle East risk premium for the global oil market and higher oil and fuel prices," he explained. "This is the opposite of what the White House is trying to achieve ahead of midterm elections in November."
This has made a growing number of U.S. lawmakers question, Soltvedt said, "why the American navy should underwrite the security of Middle Eastern oil exports when those barrels are increasingly going East rather than West." | 2022-10-12T14:32:31Z | www.cnbc.com | Biden threatens consequences for Saudi Arabia after OPEC cut | https://www.cnbc.com/2022/10/12/biden-threatens-consequences-for-saudi-arabia-after-opec-cut.html | https://www.cnbc.com/2022/10/12/biden-threatens-consequences-for-saudi-arabia-after-opec-cut.html |
Kevin Bacon explains how he lost 'most' of his fortune to Bernie Madoff—'There's obvious life lessons there'
Bacon said that he was drawn to the promise of a high return on his investment with Madoff, but said that in hindsight the tantalizing figures should have been a warning sign.
"There's obvious life lessons there," Bacon said. "If something is too good to be true, it's too good to be true."
There's obvious life lessons there — if something is too good to be true, it's too good to be true.
Bacon said that he had recouped a "portion" of his losses in the years since, but has not yet been made whole. | 2022-10-12T15:46:36Z | www.cnbc.com | Kevin Bacon says he lost 'most' of his fortune to Bernie Madoff | https://www.cnbc.com/2022/10/12/kevin-bacon-says-he-lost-most-of-his-fortune-to-bernie-madoff.html | https://www.cnbc.com/2022/10/12/kevin-bacon-says-he-lost-most-of-his-fortune-to-bernie-madoff.html |
Transportation could undergo a significant transformation in the coming decades, and that could create upside for some well-known stocks, according to UBS. Analyst Jarrod Castle put together a long-term look at different transportation frontiers and why the space could create big wins for consumers and investors in the coming years. "We think inter/intra-city transportation will undergo a material evolution in the coming decades, which should provide a number of structural investment opportunities," Castle wrote in a note to clients. Those opportunities include high-speed rail, electric vehicles, sky taxis, self-driving cars and so-called "last-mile" solutions for shorter transport. While these are long-term trends, UBS projects that there could be major progress and big money made over the next five years. UBS estimates that the electric vehicle market will be bigger than $1 trillion in 2026, compared to between $100 billion and $200 billion in 2021. Ride hailing is expected to nearly triple over that same time frame to $545 billion, while e-scooters are expected to more than double to $1.64 billion. UBS has Uber and Baidu listed as buys under the ride-hailing category, which is an industry that could benefit greatly if self-driving cars can work at scale, while Tesla and Ferrari are in the top group for electric vehicle stocks. Tesla is also among the companies working on self-driving capability. "The technology is still a work in progress, but most governments are supportive of innovation and the benefits that come with SDVs, though they impose strict testing requirements," the UBS note said. And while electric sky taxis, or vertical takeoff and landing vehicles, are still expected to be small in 2026, UBS projects more than 100 million flights annually by 2030. The vehicles could be a replacement for short-range flights for the wealthy, according to UBS. "Airlines are potentially interested in running an eVTOL shuttle service. We also see some demand for intercity travel to take a share from private jets/first-class train tickets. Lastly, high-income individuals may choose to purchase eVTOLs/utilise a service for personal mobility instead of helicopters. An example of such a market would be Brazil, where helicopter service is often utilised by high-net-worth individuals," the note said. UBS has a buy rating on French aerospace giant Airbus for this area, but there are smaller, pure-play options on the market like Vertical Aerospace and Joby Aviation that may be more high-risk, high-reward for investors. Smaller vehicles, like electric scooters and motorcycles, are also seen as a growing category. Indian and Japanese companies like Suzuki are expected to outperform for motorcycles and other smaller vehicles, but UBS does list Polaris as a buy. — CNBC's Michael Bloom contributed to this report. | 2022-10-12T15:46:42Z | www.cnbc.com | UBS gives long-term buys for the transportation revolution from self-driving cars to sky taxis | https://www.cnbc.com/2022/10/12/ubs-gives-long-term-buys-for-the-transportation-revolution-from-self-driving-cars-to-sky-taxis.html | https://www.cnbc.com/2022/10/12/ubs-gives-long-term-buys-for-the-transportation-revolution-from-self-driving-cars-to-sky-taxis.html |
Nike moves to curb automated bots and resale market with penalties
Nike shoes are displayed on a shelf a Nike factory store on June 28, 2022 in Milpitas, California.
is taking steps to curb the proliferation of sneaker-buying bots and resellers.
Nike did not immediately respond to a request for comment Wednesday morning.
In late September, Nike's shares fell more than 10% after the company said it was taking aggressive stopes to lower its overstocked inventory. | 2022-10-12T16:38:42Z | www.cnbc.com | Nike moves to curb automated bots and resale market with penalties | https://www.cnbc.com/2022/10/12/nike-moves-to-curb-automated-bots-and-resale-market-with-penalties.html | https://www.cnbc.com/2022/10/12/nike-moves-to-curb-automated-bots-and-resale-market-with-penalties.html |
Scott Guthrie, right, executive vice president of Microsoft's cloud and artificial-intelligence group, speaks with Jennifer Lin, Trimble's chief platform officer, at Trimble's Insight Tech Conference and Expo in Orlando, Fla., on Aug. 16, 2022.
has been making its GitHub subsidiary more dependent on the company's own Azure public cloud.
When GitHub was a standalone company, software developers saw it as a neutral ground where they could house their software projects and then run the code on the market-leading Amazon
Web Services cloud or any other computing environment. Then Microsoft announced its plan to buy GitHub. Some developers objected, and over 1,900 people signed a petition to block the deal. | 2022-10-12T16:43:28Z | www.cnbc.com | Microsoft GitHub relying more on Azure cloud services: Scott Guthrie | https://www.cnbc.com/2022/10/12/microsoft-github-relying-more-on-azure-cloud-services-scott-guthrie.html | https://www.cnbc.com/2022/10/12/microsoft-github-relying-more-on-azure-cloud-services-scott-guthrie.html |
Acacia Fante, 28, earns $110,000 as a senior product marketing manager in Tulsa, Oklahoma.
Like scores other U.S. workers over the summer, Acacia Fante was blindsided when she was laid off from her marketing job as part of a company restructure in July.
To top it off, Fante, 28, was in the middle of moving with her husband from Denver to Tulsa, Oklahoma, so he could start his medical residency program.
Despite the sudden departure, Fante's ex-employer did give her one major point of leverage that powered her new job search: The ed-tech company operated with total salary transparency. Every job posting included a salary range, and internally, you could see the pay progression for different levels of promotions within your job family, Fante says.
Fante adds that the company's policy existed before Colorado enacted its salary transparency law in January 2021.
"It revolutionized the way I thought about pay, because that transparency just felt very natural and like something everyone deserves," she says.
It became a must-have for anyone she interviewed with, and it also empowered her negotiations: "Once I had gotten a taste of it — knowing what I was going to be paid for this position, knowing what I could be paid if I were to move around — it just seemed silly to me to battle with an employer that wasn't operating in the same way," she says. "It gave me a confidence to feel like I could have those conversations, knowing that I was worthy of a certain level of pay, and that I could negotiate."
Transparency conversations have unlocked a new level of negotiation power she never experienced in her former teaching career, which she left in 2020, that's helped more than double her pay.
Negotiating up the job title with a $25,000 boost
Thanks to her old company's pay policies, Fante never had to second-guess the market value of her skills and experience. She earned $105,000 in her previous job and felt confident in sharing her former salary in hiring interviews, then asking for more based on where she hoped to grow. Her message: "Here's where I've been valued, here's where I have ambitions to be, and where I think I can be based upon my skills," Fante says.
That came in handy when she kicked off interviews with her now-employer, an HR tech company she was excited about. But there was one big problem: In the first interview, she learned the content writer position would pay $75,000 to $85,000.
Instead of seeing it as a deal-breaker, Fante was intrigued that the role would be the company's first full-time marketing hire under the director of marketing. Translation: She'd be on a small, growing team and could leave her mark.
She also saw it as an opportunity to negotiate the title upward into a more strategic senior role. First, she disclosed her former pay to show that her skillset was more advanced than what they were looking for, and therefore should be paid at a higher rate. Then, Fante asked more about the company's goals and the kind of work they wanted new people to do for the organization. Finally, she demonstrated where she thought she could best contribute, and pitched transforming the content writing role into a senior product marketing manager job.
Fante aimed high. Her research said a senior product marketing manager working for a tech company makes an average of $130,000 in the U.S. She knew it was a moonshot since she'd already be stretching the company's original $85,000 proposal.
Ultimately, they landed on $110,000 a year, just enough to replace her old income, plus a little extra.
Fante sees her negotiation experience as a success. "I'm proud of myself, and I think it speaks to really skilled negotiation tactics to not just get to a certain number, but to walk a company through like the evolution of: this is where you need me to be and why you need me in this particular role that you didn't actually set out to hire for the first place," she says.
Other important perks: Promotions, remote work, the freedom to grow her own business
Fante's biggest hesitancy in accepting the job at $110,000 a year was knowing that it could be valued much higher at a different company. She discussed this with her boss before accepting the job, and the two came up with a plan to track her performance and map out promotions and raises so that, on an agreed timeline, she can get up to that market value point.
Those discussions also clarified Fante's future with the company. "I also need to know, how can you help me grow? How can you help me be successful?" she says. "Sometimes that's with a specific number, and sometimes it's with an opportunity."
Fante also values other perks within her compensation package: she's eligible for bonuses and stock purchasing, her pay is tied to her skill set rather than her geographic location, she can work remotely and, as she's already done, she can take ownership of designing her job and how it evolves.
She even got the company to amend her employment contract to ensure she can continue doing freelance work and growing her own career coaching business on the side.
Imposter syndrome for doubling her pay
Today, Fante feels good about how much she makes, and she hopes to clear the $200,000 mark within her career.
But her salary success has come with a dose of "serious imposter syndrome" as a former educator who, over four years, went from making $33,000 to $43,000 a year before changing careers in 2020.
"Educators are notoriously underpaid, and I've more than doubled my salary in the last two years," Fante says.
She feels proud of the feat and "of my choice to commit to finding something where I felt valued," but admits it's tough to swallow thinking about others "who are working just as hard as you in different roles and being valued at such a lower degree monetarily. And so, for me, I keep trying to say it's not that I don't deserve it — it's that other people deserve to be paid equitably, as well."
How a 24-year-old veteran doubled his pay to $127,000 in a year without negotiating
The job interview question that helped this 25-year-old negotiate her $115,000 salary
This 26-year-old tripled her salary to $100K by tweaking her resume—here's how
27-year-old former NYSE trader went from making $12,000 to $650,000 in 4 years | 2022-10-12T16:43:34Z | www.cnbc.com | This former teacher now makes $110,000—how pay transparency helped | https://www.cnbc.com/2022/10/12/this-former-teacher-now-makes-110000-how-pay-transparency-helped.html | https://www.cnbc.com/2022/10/12/this-former-teacher-now-makes-110000-how-pay-transparency-helped.html |
Investors should not bank on a pivot from the Federal Reserve as the stock market enters a key period of earnings reports and inflation readings, according to Morgan Stanley's Mike Wilson. The equity strategist said Wednesday on CNBC's "Tech Check" that the market can't expect a full change from the Fed without some significant bad news for the economy or market functionality. "We don't think there's an imminent pivot coming anytime soon, in terms of a true pivot where they not only cause but really start cutting rates. We think that will come when it becomes apparent that we are in a recession or there is some sort of stress in the financial system that the Fed has to react to," Wilson said. The central bank is widely expected to implement another three-quarters of a percentage point rate hike next month. It would be the fourth straight hike at that size. With the Fed reluctant to change course, earnings could become the main driver of markets. And that may not be good news for bulls. Consensus earnings estimates for the next 12 months could be 20% too high, according to Morgan Stanley's models. "We don't get everything right of course, but directionally that's a pretty big gap. And we just don't think that's priced," Wilson said. Wilson does think that investors can buy some stocks but only after their expectations are reset, such as through a guidance cut. "Don't be looking to buy companies that haven't lowered the bar at all, because this isn't going to be a situation where the average company avoids a downtown in earnings. This is going to be very broad," Wilson said. The corporate earnings season kicks into high gear on Friday, with major banks JPMorgan Chase, Wells Fargo, Citigroup and Morgan Stanley slated to report. | 2022-10-12T17:17:59Z | www.cnbc.com | Here's when Morgan Stanley's Mike Wilson sees a 'true Fed pivot' coming | https://www.cnbc.com/2022/10/12/heres-when-morgan-stanleys-mike-wilson-sees-a-true-fed-pivot-coming-.html | https://www.cnbc.com/2022/10/12/heres-when-morgan-stanleys-mike-wilson-sees-a-true-fed-pivot-coming-.html |
A4N1-FF
Priced at about $84,000, the car comes loaded with technology, including an Nvidia
computer running advanced driver-assist software developed by Polestar's part owner, Volvo Cars.
Only one version of the Polestar 3 will be available at launch, though less expensive trims are expected to follow. An optional "Pilot Pack" will add a Luminar
lidar unit and other sensors needed for autonomous driving, which Polestar expects to make available in the future via an over-the-air update.
It's also something of a step up in price from what will likely be its main competitor: Tesla's
Model Y, which costs about $70,000 in similar dual-motor trim. Another potential rival, BMW's
all-electric iX SUV, starts at about $85,000. | 2022-10-12T17:18:11Z | www.cnbc.com | Polestar unveils $84,000 electric SUV, Polestar 3, to cement U.S. foothold | https://www.cnbc.com/2022/10/12/polestar-unveils-84000-electric-suv-polestar-3-to-cement-us-foothold.html | https://www.cnbc.com/2022/10/12/polestar-unveils-84000-electric-suv-polestar-3-to-cement-us-foothold.html |
Uganda declared an outbreak of Ebola in late September after person from a village in the central region of the country tested positive for the virus. There are no licensed vaccines or treatments for the strain that caused the outbreak, called Sudan ebolavirus.
Ebolavirus does not spread through airborne transmission. People catch the disease through direct contact with body fluids of a person who has fallen ill or died from the virus. It can also spread through contact with contaminated materials and infected animals.
Airlines are providing passenger information to the Centers for Disease Control and Prevention so the agency can conduct follow ups with the travelers, a federal health official said last week. This information is also being shared with state and local health departments.
The CDC issued an alert last week telling local health departments and physicians to be on the look out for patients who have symptoms. Health-care professionals should obtain detailed travel history from patients suspected of having the disease, particularly those who have been in the affected areas of Uganda. The U.K. Health Security Agency has issued a similar alert in Britain.
Dr. Mike Ryan, head of the WHO's health emergencies program, said on Wednesday that Uganda's government needs more support from the international community ramp up surveillance on the ground to contain the outbreak. Ryan said not enough health alerts are being issued at the local level. | 2022-10-12T17:18:36Z | www.cnbc.com | WHO calls for more international aide to prevent Ebola from spreading beyond Uganda | https://www.cnbc.com/2022/10/12/who-calls-for-more-international-aide-to-prevent-ebola-from-spreading-beyond-uganda.html | https://www.cnbc.com/2022/10/12/who-calls-for-more-international-aide-to-prevent-ebola-from-spreading-beyond-uganda.html |
The volatile market is pushing some cyclical stocks' price-earnings ratios to levels that Bill Nygren, portfolio manager at Oakmark Funds, sees as "unsustainably low." Those are the stocks he wants to buy. "When the markets are really volatile like they have been, that tends to lead to an increase in the distribution of P/E ratios," he said on CNBC's "Squawk on the Street." "And as that widens, I think that creates more opportunity for stock pickers." Nygren said that recession fears are driving down companies' P/E ratios. This ratio is what you get when you divide a stock's price by the annual earnings per share. It's a method to assess a company's value. Nygren said stocks that are currently selling at lower-than-typical P/E ratios have long-term value for investors who can wait out current pressures on company earnings and share values. He said Oakmark last quarter bought Fortune Brands , the company known for its home and security goods brands including Moen and Master Lock. The stock is down about 46% so far this year. Its P/E ratio based on next year's earnings is 8.9, according to FactSet. Nygren said he doesn't believe investors fully realize the company's cabinet business. Oakmark also bought Warner Bros. Discovery , which is down 50% this year. AT & T's WarnerMedia was removed from the cable giant and merged with Discovery earlier this year , creating the new WBD stock symbol. Its P/E ratio based on next year's earnings is 23.9, according to FactSet. Nygren said the stock was interesting because Discovery purchased Time Warner assets from AT & T for less than half of what the telecom giant paid for them five years ago, while the Warner Bros. content library continues to go up in value. While he said the library was "not particularly well-managed" under AT & T, he sees an opportunity for the company to be a streaming leader going forward. "Warner has done a great job of making must-see content," Nygren said. "And we believe that one way or another, the company is going to be successful at monetizing that." But Nygren is also still interested in Netflix , which he said has been a "very good performer" over the past few months despite having a rocky run earlier in the year. He said the company's plans for an ad-supported tier and the monetization of password sharing will help it hit double-digit growth and expanded cost savings. His view of the streaming giant is also helped by the low churn rate, he said. He added that the streaming stock is "not that expensive." Its P/E ratio based on next year's earnings 20.4, according to FactSet. Shares are down about 63% year to date. Nygren said Uber is still worth holding despite concerns over the impact of a federal proposal that could lead to gig workers being reclassified as employees rather than independent contractors , which would raise costs for Uber and its competitors. He does not believe this will take effect, pointing to a similar proposal in California that was deemed unconstitutional. "As people dug deeper and understood it better, they realized it wasn't good for the drivers, it wasn't good for consumers, and it didn't pass," he said of the California proposal. He said the stock as it stands is appealing because of its free cash flow yield of nearly 10% on expected earnings in 2024. He noted that is without including Uber Eats, which could add 25% to the company's market cap. Uber, which is down 38% this year, could post double-digit growth rates in the future, he said. The company is expected to lose money next year, according to FactSet, and so the stock does not have a P/E ratio. | 2022-10-12T18:14:27Z | www.cnbc.com | Bill Nygren is looking to stocks with 'unsustainably low' price-earnings ratios | https://www.cnbc.com/2022/10/12/bill-nygren-is-looking-to-stocks-with-unsustainably-low-price-earnings-ratios.html | https://www.cnbc.com/2022/10/12/bill-nygren-is-looking-to-stocks-with-unsustainably-low-price-earnings-ratios.html |
Cash equivalents was the only major asset class that gained in the third quarter with a 0.5% return, outpacing inflation for the first time on a quarterly basis since the second quarter of 2020, according to Bank of America. The S&P 500
suffered a 5% loss for the period, marking its worst third quarter since 2015.
Alpha In The Family | 2022-10-12T18:14:33Z | www.cnbc.com | Cash is king again as money managers are in no rush to embrace risk with Fed raising rates | https://www.cnbc.com/2022/10/12/cash-is-king-again-as-money-managers-are-in-no-rush-to-embrace-risk-with-fed-raising-rates.html | https://www.cnbc.com/2022/10/12/cash-is-king-again-as-money-managers-are-in-no-rush-to-embrace-risk-with-fed-raising-rates.html |
U.S. Federal Reserve Board Chairman Jerome Powell speaks during a news conference following a meeting of the Federal Open Market Committee (FOMC) at the headquarters of the Federal Reserve on September 21, 2022 in Washington, DC.
They reiterated rate hikes are likely to continue and higher rates prevail until the problem is showing signs of resolving.
The S&P 500 was little changed on Wednesday after the release of the minutes, stuck near its lowest level of the year as traders saw little evidence that a pivot to a softer monetary stance was on the horizon.
"Several participants underlined the need to maintain a restrictive stance for as long as necessary, with a couple of these participants stressing that historical experience demonstrated the danger of prematurely ending periods of tight monetary policy designed to bring down inflation," the minutes stated.
The meeting happened ahead of a recent flow of data showing that inflation pressures do remain elevated, though not at the pace they were earlier this year. The Fed's preferred inflation gauge of consumer price expenditures rose 6.2% from a year ago – 4.9% excluding food and energy – in August, according to data last week that was well above the central bank's 2% target.
Members of the rate-setting Federal Open Market Committee noted at the meeting that the economy needs to slow to get inflation to cool. They lowered their projections for the economy, expecting GDP to grow at just a 0.2% annualized pace in 2022 and just 1.2% in 2023, well below trend and big drop from 2021, which saw the strongest gains since 1984.
They said inflation was being driven by supply chain problems that were not limited to goods but also stressed to a shortage of labor.
The meeting concluded with the FOMC approving its third consecutive 0.75 percentage point increase, taking benchmark rates to a range of 3%-3.25%. Markets widely expect a similar-size increase to be approved at the next meeting in early November. | 2022-10-12T18:14:46Z | www.cnbc.com | Fed minutes October 2022: | https://www.cnbc.com/2022/10/12/fed-minutes-october-2022.html | https://www.cnbc.com/2022/10/12/fed-minutes-october-2022.html |
The AMC 25 Theatres in Times Square in New York is seen on Tuesday, July 8, 2014.
hit a new 52-week low Wednesday as the movie theater company contends with a massive debt load, dilution of its stock and a film release schedule short on blockbusters.
Can AMC make a comeback?
There are only four would-be blockbuster releases coming to theaters before the end of the year: Warner Bros.
′ "Black Adam (Oct. 21), and Disney's
"Black Panther: Wakanda Forever" (Nov. 11), "Strange World" (Nov. 23) and "Avatar: The Way of Water" (Dec. 16.) | 2022-10-12T19:45:51Z | www.cnbc.com | AMC Entertainment stock falls to 52-week low | https://www.cnbc.com/2022/10/12/amc-entertainment-stock-falls-to-52-week-low.html | https://www.cnbc.com/2022/10/12/amc-entertainment-stock-falls-to-52-week-low.html |
Tim Boyle | Getty
Lou Balzani has ordered through Dunkin's app three to four times a week for years — but he's rethinking his loyalty in light of the coffee chain's new rewards program.
"The new Dunkin' Rewards system is honestly insulting... We're we're breaking up. It's not me, it's you," the 30-year-old tweeted on Sunday.
Balzani plans to take his business elsewhere based on the changes, he tells CNBC Make It, which he describes as a "pay more and get less" scheme that's been obfuscated by a new points system.
Other diehard Dunkin' patrons have expressed similar sentiments on social media, with some saying they've uninstalled the rewards program's app on their phones.
As part of the revamped program, the company says that consumers can earn points twice as fast as they did with the old DD Perks program: Now they earn 10 points rather than five for every $1 spent. However, the redemption value for free drinks has increased.
Previously, customers could redeem $40 worth of purchases for any drink, including premium items. Now, that same amount will only get you a shot of espresso or a tea.
Under the new Dunkin' Rewards program, premium drinks like the Signature Latte now require $90 in purchases, more than double what customers previously paid.
The program does offer some new perks. One big change is that food can be redeemed for the first time, with some items offered for less than $40 in purchases. Mini hash browns and doughnut holes can be claimed with $15 in purchases, while a doughnut can be claimed for $25 in purchases.
Dunkin' Rewards offers a "Boosted Status," which awards 1.2 points for every dollar spent for customers who visit a Dunkin' location 12 or more times per month.
However, these perks don't address the actual needs of Dunkin's most loyal customers, Balzani says.
"I've been a regular customer for 10 to 12 years and the food was never a big selling point for me," he says. "When what you actually buy gets rolled back with no real replacement or additional benefit, that's where you start to feel taken advantage of."
CNBC Make It reached out to Dunkin' for comment about its new rewards program.
Don't miss: 'Lightning just struck me': Why Costco's CFO says the price of the $1.50 hot dog and soda combo is 'forever' | 2022-10-12T19:45:57Z | www.cnbc.com | Dunkin' customers are 'breaking up' with its revamped rewards program | https://www.cnbc.com/2022/10/12/dunkin-customers-are-breaking-up-with-its-revamped-rewards-program.html | https://www.cnbc.com/2022/10/12/dunkin-customers-are-breaking-up-with-its-revamped-rewards-program.html |
These are the most heavily shorted stocks on Wall Street, including one soaring pharma name
Investors seem to be mounting bets against some biotech and pharma names, including one that has soared in 2022. FactSet data showed that short interest in Tricida , a company working on a drug aimed at treating chronic kidney disease, increased to about 8 million shares through the end of September. That's 36% of the total floating shares, or those available for trading. Tricida has been on fire this year, rising more than 30% in that time, while the broader market struggles. The stock has fared even better over the past 12 months, nearly tripling in value in that time. Short interest also increased on two other biotech names: Verve Therapeutics and Allogene Therapeutics . Short interest in Verve rose to 12 million shares, or 34% of its float, while 27.6 million shares of Allogene were being shorted through the end of September. Allogene shares are down 25% year to date, while Verve has lost about 11%. Retailers Bed Bath & Beyond and Big Lots, along women's fashion company Torrid Holdings, also saw increased short interest. Check out below the full list of heavily shorted stocks. (Note: The table includes stocks traded on the NASDAQ or NYSE exchanges with short interest greater than 25% of their total float and at least $100 million in market cap. Short interest data is updated twice a month and reported mid-month and at the end of the month. These figures are current as of Sept. 30 as reported by the exchanges, via FactSet. The next release date is Oct. 25 for short interest data as of Oct. 14). | 2022-10-12T19:46:15Z | www.cnbc.com | These are the most heavily shorted stocks on Wall Street, including one soaring pharma name | https://www.cnbc.com/2022/10/12/these-are-the-most-heavily-shorted-stocks-on-wall-street-including-one-soaring-pharma-name.html | https://www.cnbc.com/2022/10/12/these-are-the-most-heavily-shorted-stocks-on-wall-street-including-one-soaring-pharma-name.html |
Club holding Disney (DIS) is raising the prices of some U.S. theme park offerings, a potentially notable development after what CEO Bob Chapek told CNBC two months ago about what it would take for further hikes to occur. "It's all up to the consumer," Chapek said Aug. 11, when pressed on whether there'd be increases to ticket prices. "If consumer demand keeps up, we act accordingly. If we see a softening, which we don't think we're going to see, then we can act accordingly, as well. We're very flexible." Those August remarks came to mind when we got word of these new price changes. The hikes are also happening when there have been questions about how well demand at Disney's theme parks will hold up in the face of persistent inflation and worries of an economic slowdown. What's changing Recall that Disney adopted dynamic-pricing model a few years ago that results in higher admission prices on historically more popular days. Following these recent pricing changes, a single-day adult ticket to Disneyland Resort in California is $179 on the highest-demand days, about an 9% increase. For context: That's what it will cost to go to the park on Nov. 26, the Saturday after Thanksgiving, according to Disneyland's website. A few days later, on Wednesday Nov. 30, the website shows a single-day ticket is $144. Two-day ticket for Disneyland is now priced at $285, a nearly 12% increase. The price of some parking options also rose. Disney also made changes to the pricing of Genie+, a popular and relatively new digital feature that unlocks premium benefits inside the theme park such as bypassing lines for attractions. At Disneyland, the price of Genie+ is now $25 per day when purchased in advance, up from $20. At Walt Disney World in Florida, Genie+ now ranges between $15 and $22 through the end of October — with prices at the higher end of the range on more popular days. It used to be $15 on all days. After October, the price is of Genie+ at Disney World is subject to change again, according to a company spokesman. It will remain variable, based on demand on a given day. The popularity of Genie+ has exceeded management's expectations and helped to boost per capita spending at the theme parks. On the company's third-quarter earnings call in August, Chapek said around 50% of parkgoers upgrade to purchase Genie+. The Club's take In recent months, we've made our frustrations clear with the performance of Disney's stock. We think the market is getting this all wrong based on the strength of the company's underlying businesses, especially the highly profitable division that includes theme parks. However, we understand Disney's theme parks do have economic sensitivity — vacation plans may be scaled back in a recession — and that's what investors may be worried about, in addition to the losses in the streaming division. We believe in Disney's unrivaled franchises in the long-term, though. In the near term, these latest price hikes at the theme parks may point to continued theme park-strength, based on Chapek's August comments to CNBC: "If consumer demand keeps up, we act accordingly." We know demand has been booming for the last few quarters, as Covid restrictions have eased and many people felt more comfortable to resume their pre-pandemic ways. In its fiscal third quarter, which was reported in August, Disney's parks, experiences and products division recorded $7.4 billion in revenue, up 70% year over year, and far ahead of the Wall Street estimate of $6.75 billion. The division also contributed around 61% of the company's overall operating income in Q3, despite making up only roughly 34% of quarterly revenue. The primary source of the theme-park strength in California and Florida has been U.S. residents, Chapek has said before, noting that international travel hasn't fully recovered yet, so there's more pent-up demand that's likely to be unleashed in the future. We'll get a more detailed look at how Disney's theme parks did in its fiscal fourth quarter when the company's official quarterly results hit the tape after the Nov. 8 closing bell. (Jim Cramer's Charitable Trust is long DIS. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
A performer dressed as Mickey Mouse entertains guests during the reopening of the Disneyland theme park in Anaheim, California, U.S., on Friday, April 30, 2021. | 2022-10-12T21:17:20Z | www.cnbc.com | Disney's U.S. theme park ticket hikes point to continued strong demand and pricing power | https://www.cnbc.com/2022/10/12/disneys-us-theme-park-price-hikes-point-to-continued-strong-demand-and-pricing-power.html | https://www.cnbc.com/2022/10/12/disneys-us-theme-park-price-hikes-point-to-continued-strong-demand-and-pricing-power.html |
: "You and I both know it's the right place."
: "It's losing money. And when a stock is losing money, it goes down."
: "They did a really lousy deal with [Westinghouse Electric.] ... I would never have done that deal if I were them."
Western Union Co
: "I used to believe in them. ... But they have no growth whatsoever. We can't own stocks that have no growth in a period of Fed tightening."
: "It's a fabulous company, but it doesn't make money, and that's a problem." | 2022-10-13T00:20:00Z | www.cnbc.com | Cramer's lightning round: Western Union is not a buy | https://www.cnbc.com/2022/10/12/cramers-lightning-round-western-union-is-not-a-buy.html | https://www.cnbc.com/2022/10/12/cramers-lightning-round-western-union-is-not-a-buy.html |
Goldman Sachs raised its forecasts for electric car sales and believes Tesla and General Motors will benefit from the trend. The Wall Street giant said in research note Tuesday it sees 13.5% of all car sales being battery-electric vehicles in the United States in 2024, compared to its previous forecast of 12.5%. It also expects BEVs to keep increasing their share of total sales in the future: 20% in 2025, 50% in 2030, and 85% by 2040. The Inflation Reduction Act , signed by President Joe Biden in August, will benefit carmakers such as Tesla and GM with $7,500 worth of tax credits per car, according to Goldman. Only carmakers that meet strict criteria, such as having their final assembly plants in North America and sourcing a large proportion of their battery components from the continent, will be eligible for the tax credit, according to the White House. Analysts at the bank say these restrictions mean Tesla has the potential to benefit from the program as the company already manufactures both cars and batteries in the United States. "Tesla could theoretically raise prices in the U.S. all else equal if its vehicles now qualify for credits," the analysts said, suggesting that the company could pocket the tax credits as profit by keeping prices for consumers unchanged. But Tesla can choose to lower prices by passing on savings from efficiencies in manufacturing, the analysts said. Goldman said it now expects Tesla to make 2.4 million cars worldwide in 2024, up from its previous forecast of 2.275 million. The note to its clients revealed that the American investment bank had a buy rating on Tesla with a 12-month price target of $305 — a 40% upside from current trading levels. Tesla shares have fallen by more than 38% this year. According to the report, the tax credits will also benefit GM and Ford , although only "slightly." Both automakers could upgrade existing infrastructure and build new EV manufacturing facilities at lower costs due to the tax credit, according to the research note. Goldman had a price target of $42 for General Motors' buy-rated stock, giving it a 30% upside from the current share price. Ford meanwhile had a "neutral" rating with a price target of $13 — only a dollar and fifty cents above the current share price. Outlook for the whole sector Stock markets have been historically unkind to the established automakers heading into an economic slowdown, and with good reason. They are often the first to face the consumer's ax as they are the second largest purchases after housing and are very sensitive to discretionary spending. Housing sales figures, which are also strongly correlated to vehicle sales, point toward a gloomy picture , according to Goldman. The National Association of Home Builders index dropped 6 points to 49 this month, its eighth straight monthly decline. "We believe key demand indicators for the auto and industrial end markets are generally weak and/or decelerating. That said, it's important to note that some markets have been cyclically depressed due to supply constraints such as autos," the analysts said. Their report said Google search traffic data showed that consumer demand for new vehicles remained "at a solid absolute level" but cautioned that not all automakers would likely see a favorable few months. "We'd continue be selective with OEMs as price and mix are likely to be headwinds in 2023 as supply/demand generally moderates, and we prefer TSLA and GM," they said. | 2022-10-13T00:20:25Z | www.cnbc.com | Goldman Sachs favors Tesla and another big automaker even during a slowdown | https://www.cnbc.com/2022/10/13/goldman-sachs-favors-tesla-and-another-big-automaker-even-during-a-slowdown.html | https://www.cnbc.com/2022/10/13/goldman-sachs-favors-tesla-and-another-big-automaker-even-during-a-slowdown.html |
These are tumultuous times for Meta , with investors fleeing the stock and the metaverse having its fair share of struggles and other economic headwinds. The company has lost about two-thirds of its value since peaking in September 2021. The stock in late September plunged to trade at its lowest since January 2019 — and has since dropped even more. It has lost over 60% year-to-date. Users are jumping ship and advertisers are reducing their spending, leaving Meta poised to report its second straight drop in quarterly revenue. Meta also lost $2.81 billion on $452 million in revenue from its virtual reality division during the quarter ending in June — as it spent heavily to develop virtual reality and augmented reality products. Even then, the company still has a dominant position in mobile advertising and has one of the most profitable business models on the planet. Even with a 36% drop in net income in the latest quarter , Meta generated $6.7 billion in profit. Two tech investors faced off on CNBC's " Street Signs Asia " on Wednesday to make a case for and against buying the stock. Why it's a buy Meta has a "true chance" of being successful, with its CEO Mark Zuckerburg "looking to the long-term path and survival" of the company, said Jake Dollarhide, CEO of Longbow Asset Management. "So it's a transformation in the metaverse he's looking to," he said. "Using AI [artificial intelligence] the way they're using AI, I think they have a true chance to be successful, or at least to right the ship until the metaverse starts giving the company more than 1.5% of its revenues." Zuckerberg has made clear that the future of the company is in the metaverse. "I'm really excited about what could come with WhatsApp and Messenger and Instagram within the metaverse — people talking to each other. Throw in the ability to buy a pair of Nikes and its strategic alliances with all these different companies. It truly is a different world," Dollarhide said. He added, "I wouldn't bet against Zuckerberg like I wouldn't bet against Elon Musk." A contrarian approach is one reason to go into Meta, Dollarhide said. "I want to buy low sell high, I'm more of a contrarian play," he said. "If something's really out of favor, I need to bet on it … and make good money for my clients." Why it's one to avoid Meta might be a "cheap" stock now, said Paul Meeks, a portfolio manager at Independent Solutions Wealth Management, but its estimates for revenue and earnings per share are continuing to drop. "Meta is relatively inexpensive. I think there is some real pain already priced in the stock," he said. "However, I think that you cannot be a contrarian investor and buy it now until you know when Wall Street earnings estimates are going to stop falling." The metaverse has "the potential to be just a lot of fluff," Meeks said. "Even if it ends up being an exciting industry, you know Meta's contribution might be hardware, and hardware is very low margin compared to legacy business," he said, citing the example of virtual reality headsets. "In the meantime, their legacy business is falling off a cliff, they're losing share to TikTok. And the digital advertising business, at least in the U.S., is way down and will continue to go down because we're in a recession." Meeks added that there are many better opportunities in the tech sector, such as large-cap stocks with "much clearer futures." | 2022-10-13T00:20:32Z | www.cnbc.com | Is Meta a stock to buy or dodge? Two tech investors face off | https://www.cnbc.com/2022/10/13/is-meta-a-stock-to-buy-or-dodge-two-tech-investors-face-off.html | https://www.cnbc.com/2022/10/13/is-meta-a-stock-to-buy-or-dodge-two-tech-investors-face-off.html |
The yen may be weak, but Japan's tourism isn't expected to get a 'bona fide' rebound without Chinese visitors
The Japanese yen'
s slump against the U.S. dollar has sparked some worry in Japan, but that could encourage more travelers to visit the country again, according to analysts — though they say a significant rebound in the tourism sector won't happen without the return of Chinese tourists. | 2022-10-13T01:47:01Z | www.cnbc.com | Japan tourism: Weak yen to boost travel; no full rebound without China | https://www.cnbc.com/2022/10/13/japan-tourism-weak-yen-to-boost-travel-no-full-rebound-without-china.html | https://www.cnbc.com/2022/10/13/japan-tourism-weak-yen-to-boost-travel-no-full-rebound-without-china.html |
The Nasdaq could be primed for huge gains after reaching a dire milestone, history shows
The Nasdaq Composite is performing at one of its most "miserable" levels ever and one not seen in more than a decade, according to Sundial Capital Research. The good news: That usually gives way to an upswing. The composite was down for the fifth day in a row on Tuesday. It's down more than 30% so far this year, and also hit a new two-year low. It's the first time these three indicators have flashed together since the 2008 recession. And it's only the sixth time since the composite launched in 1971. "The Nasdaq has entered elite company, joining the most miserable markets ever," Jason Goepfert, chief research officer of Sundial Capital Research, said in a Tweet . Sundial does business as SentimenTrader.com, where the data was posted. Bounce back Historically, the Nasdaq typically bounces back after these three conditions are met. In five previous instances, one week later the index was always higher and the median gain 5.3% . One year later, the median gain was 20.3%, but the dispersion was greater, with two instances down and three up from what Goepfert dubbed the original point of "misery." After 2008, the gain one year later was 40.5% while in 1973 the loss one year later was 34.3%. To be sure, there were infrequent times when the index would trade down over the course of each year. But the data aligns with general sentiment that a bear market often – though not always – leads to a bounce back. Historical points The last time these signals were triggered was in the midst of the Global Financial Crisis, in October 2008, when they flared up twice in the same month. Before that, the three conditions were met in September 2001, shortly after markets reopened following the 9-11 attacks; in 1974, a few weeks after President Nixon's resignation; and in late 1973 in the midst of the Arab oil embargo that followed the Yom Kippur War. Interestingly, all six instances occurred in the final four months of the year: twice in September, three times in October and once in December.
Michelle Fox7 min ago | 2022-10-13T04:54:13Z | www.cnbc.com | The Nasdaq could be primed for huge gains after reaching a dire milestone, history shows | https://www.cnbc.com/2022/10/13/the-nasdaq-could-be-primed-for-huge-gains-after-reaching-a-dire-milestone-history-shows.html | https://www.cnbc.com/2022/10/13/the-nasdaq-could-be-primed-for-huge-gains-after-reaching-a-dire-milestone-history-shows.html |
After an already tough year, earnings and guidance are expected to come under increased pressure. Yet there are names that stand out in this environment, according to Wolfe Research. The firm came up with a list of names to hold for the long term based on their earnings performances and forecasts this year. "Our sense is that companies beating on the top- and bottom-lines and providing constructive outlooks should have an increased chance of outperforming their peers in the months ahead," chief investment strategist Chris Senyek wrote in a note Wednesday. Corporate America has been facing headwinds such as inflation and supply chain issues. The Federal Reserve is also continuing to hike interest rates in an effort to tame rising prices, leading some to become concerned about a possible recession . While overall second-quarter earnings came in better than expected, those expectations were pretty low. Projections are also low for the third quarter. In fact, they fell 7% in the three months preceding earnings season, compared to the average 3% to 4% decline typically experienced, Credit Suisse chief U.S. equity strategist Jonathan Golub pointed out in a separate note Wednesday. The S & P 500 's earnings-per-share projections point to 2.6% growth in the third quarter, he said. The season kicks into high gear on Friday with some of the major banks reporting. To find long stock ideas in this environment, Wolfe Research's Senyek screened for names that beat revenue and earnings per share estimates with positive price action around their first and second-quarter reports. Here are 10 of those names. PepsiCo continued its winning streak by reporting third-quarter results before the bell Wednesday that beat expectations. The snack and beverage giant said revenue rose 9% from a year ago to $21.97 billion, versus expectations of $20.84 billion. Its earnings came in at $1.97 per share, adjusted, compared to the Refinitiv forecast of $1.84 per share. Pepsi also boosted its forecast, anticipating revenue growth of 12% for 2022, up from 10%. CVS Health doesn't report its third-quarter results until Nov. 2, but in its second-quarter report , the company increased its earnings outlook for 2022. The pharmacy operator now expects earnings per share for the full year to come in between $8.40 and $8.60, compared with its earlier estimate of between $8.20 and $8.40. In the second quarter, the company earned $2.40 per share, adjusted, beating a Refinitiv forecast of $2.17 per share. Rising oil prices helped Chevron , which reported record profits during the second quarter of 2022. Earnings came in at $11.62 billion during the three-month period, up from $3.08 billion during the second quarter of 2021. The energy giant earned $5.82 per share excluding items on $68.76 billion in revenue for the second quarter. Wall Street expected the company to earn $5.10 per share on $59.29 billion in revenue, according to Refinitiv. Chevron shares are up more than 30% year to date. Third-quarter results are expected to come in later this month. Lastly, Apple 's earnings per share for the fiscal third-quarter was $120, more than the expected $1.16. However, that was down 8% year over year. The tech giant's revenue was $83 billion, compared to the $82.81 expected by Wall Street analysts. "In terms of an outlook in the aggregate, we expect revenue to accelerate in the September quarter despite seeing some pockets of softness," Apple CEO Tim Cook told CNBC's Steve Kovach in July. Apple is set to release its fiscal fourth-quarter results Oct. 27. In a note Tuesday, Citi analyst Jim Suva said he was still positive on the stock, despite investor and media fears. "Apple shares have slightly outperformed the broader market, given better-than-feared results [year to date], continued product launches, and positive news flow on consumer preference for higher ASP iPhone 14 Pro models," he said. — CNBC's Michael Bloom contributed reporting. | 2022-10-13T05:28:55Z | www.cnbc.com | Buy these stocks that are beating earnings expectations in this tough environment, Wolfe Research says | https://www.cnbc.com/2022/10/13/buy-these-stocks-that-are-beating-earnings-expectations-in-this-tough-environment-wolfe-research-says.html | https://www.cnbc.com/2022/10/13/buy-these-stocks-that-are-beating-earnings-expectations-in-this-tough-environment-wolfe-research-says.html |
Excluding the volatile food and energy components, the so-called core PPI increased 0.3% in September and advanced 7.2% from a year earlier, which was broadly in line with market expectations.
Two-thirds of the increase in the PPI came from the service sector, such as travel, lodging, retail food, medical care, etc. Market reaction to this PPI data was relatively calm, with the three indices only slightly down by the end of the day.
In this regard, some analysts said that the market had already anticipated inflation to remain high for some time. They also know that the Fed will continue to raise interest rates to curb inflation. In fact, investors are more concerned with the September consumer price index, or CPI, which will be released soon.
Economists expect the headline CPI rose 0.3% in September, up from 0.1% in August, according to Dow Jones. That would mean inflation was running at an annual pace of 8.1%, down from 8.3%. Excluding food and energy, CPI is expected to have risen 0.4%, down from 0.6% in August. But the annual rate of 6.5% core inflation is expected to be higher than the 6.3% in August.
For the CPI data, we need to pay extra attention to the increase in rent.
The market is probably near its peak, but I do not anticipate a swift return to lower numbers owing, in part, to the persistence of rental inflation, noted Michael Feroli, chief US economist at JPMorgan Chase & Co.
Two key measures of rental prices: owners' equivalent rent and rent of primary residence, both rose 0.7% in August from a year earlier, while year-over-year increases reached their highest levels since 1986. Deutsche Bank expects both indicators to rise another 0.7% when they are released tonight.
Housing accounts for about one-third of the overall CPI "basket" and an even larger share of the core CPI. Bank of America expects services inflation, which accounts for 40% of the CPI, to rise 0.5% from last month, driven by the rise in housing costs.
Fed Governor Christopher Waller reinforced the thought that rental prices are key factors for the ultimate path of US inflation. He stressed last week that he's closely watching shelter inflation "in determining" his outlook for US inflation. He went on to say that "unfortunately, the message is that shelter inflation will likely remain high for several months."
The latest CME federal interest rate futures show that the market sees an 84.8% probability that the Fed will raise rates by another 75 basis points at its early November meeting.
Many economists say that inflation in the U.S. has not yet peaked: supply-side risks remain. OPEC+ production cuts will bring uncertainty to energy prices, plus the impact of Hurricane Ian will take some time to show. | 2022-10-13T06:25:35Z | www.cnbc.com | CCTV Script 13/10/22 | https://www.cnbc.com/2022/10/13/cctv-script-13/10/22.html | https://www.cnbc.com/2022/10/13/cctv-script-13/10/22.html |
Treasury yields rose on Thursday as markets braced themselves for the release of September's consumer price index data, while still digesting the hotter-than-predicted producer price index report.
The yield on the policy-sensitive 2-year Treasury
was up by 3 basis points to 4.3184% at around 4:30 a.m. ET, nearing the 15-year highs it reached last month. The benchmark 10-year Treasury
rose to 3.9230% after gaining 2 basis points, closing in on the 4% mark for the second time in recent weeks. | 2022-10-13T09:28:13Z | www.cnbc.com | Treasury yields climb ahead of inflation data | https://www.cnbc.com/2022/10/13/treasury-yields-climb-ahead-of-inflation-data.html | https://www.cnbc.com/2022/10/13/treasury-yields-climb-ahead-of-inflation-data.html |
said Thursday that it expects to post yet another profit in the final quarter of the year, as people are expected to take to the skies for holiday travel after more than two years of Covid restrictions and wariness. "The travel recovery continues as consumer spend shifts to experiences and demand improves in corporate and international," CEO Ed Bastian said in an earnings release. The company noted that its capacity is improving, too – saying it would be as much as 92% restored to pre-pandemic levels during the fourth quarter. It's also aiming toward achieving a full recovery by next summer. | 2022-10-13T11:34:25Z | www.cnbc.com | 5 things to know before the stock market opens Thursday, October 13 | https://www.cnbc.com/2022/10/13/5-things-to-know-before-the-stock-market-opens-thursday-october-13.html | https://www.cnbc.com/2022/10/13/5-things-to-know-before-the-stock-market-opens-thursday-october-13.html |
on Thursday exceeded fiscal fourth quarter sales and earnings expectations, as the drugstore chain turns itself into a more health-care focused company.
Shares were up about 5% in premarket trading.
The company said its profits took a hit from a non-cash impairment charge in its Boots UK business and from its long-term cost management program. A year ago, Walgreens laid out a cost savings goal of $3.3 billion by 2024.
At the end of the quarter, Walgreens had a total of 334 doctor offices with VillageMD. The clinics, called Village Medical, are located next to its drugstores. It also has 70 stores with Health Corners, a designated space where a registered nurse or pharmacist can schedule a mammogram, screen a patient for high blood pressure or diabetes or help with other health-care needs. | 2022-10-13T11:34:31Z | www.cnbc.com | Walgreens (WBA) Q4 2022 earnings | https://www.cnbc.com/2022/10/13/walgreens-wba-q4-2022-earnings.html | https://www.cnbc.com/2022/10/13/walgreens-wba-q4-2022-earnings.html |
, one of the world's most important semiconductor toolmakers, told U.S. employees to stop servicing Chinese customers, as Washington's latest export restrictions begin to hit the global chip industry.
ASML is one of the most critical players in the semiconductor supply chain because it produces a machine required to make the most advanced chips in the world. The Netherlands-headquartered firm is the only company in the world that makes these extreme ultraviolet lithography machines, which are used by the likes of TSMC
, the most advanced chip manufacturer in the world.
South Korean chipmakers Samsung
and SK Hynix
have also obtained one-year waivers from the U.S. so they can keep sending equipment to their China factories without getting a license, the Korea Times reported Thursday. | 2022-10-13T12:30:59Z | www.cnbc.com | Biden chip curb: ASML stops US staff from servicing customers in China | https://www.cnbc.com/2022/10/13/biden-chip-curb-asml-stops-us-staff-from-servicing-customers-in-china.html | https://www.cnbc.com/2022/10/13/biden-chip-curb-asml-stops-us-staff-from-servicing-customers-in-china.html |
Social Security beneficiaries can expect an 8.7% boost to benefits in 2023, the Social Security Administration announced on Thursday.
The Social Security Administration announced the change on Thursday, which will result in a benefit increase of more than $140 more per month on average starting in January.
The 8.7% bump to benefits tops the 5.9% increase beneficiaries saw in 2022, which at the time was the highest in four decades.
The last time a higher cost-of-living adjustment was announced was in 1981, when the increase was 11.2%.
Kate Dore, CFP®an hour ago | 2022-10-13T13:06:00Z | www.cnbc.com | Social Security COLA will be 8.7% in 2023, highest increase in 40 years | https://www.cnbc.com/2022/10/13/social-security-cola-will-be-8point7percent-in-2023-highest-increase-in-40-years.html | https://www.cnbc.com/2022/10/13/social-security-cola-will-be-8point7percent-in-2023-highest-increase-in-40-years.html |
Inflation remains persistently high at 8.2%—and more interest rate hikes are likely
U.S. Federal Reserve Board Chairman Jerome Powell speaks during a news conference at the headquarters of the Federal Reserve, July 27, 2022 in Washington, DC.
The year-over-year rate of inflation is now 8.2%, down from its June peak of 9.1%, according to the Labor Department's Consumer Price Index, which measures how much Americans pay for certain goods and services.
With the rate hikes, the Fed had expected inflation to decline faster than it actually has, Federal Reserve chairman Jerome Powell said in a press conference after the Fed's last rate increase in September. "That tells us we need to we keep doing these," he said.
We bought an apartment in a 400-year-old Lisbon building—here's a look inside | 2022-10-13T14:02:41Z | www.cnbc.com | Inflation remains high at 8.2%, more interest rate hikes likely | https://www.cnbc.com/2022/10/13/inflation-remains-high-at-8-point-2-percent-more-interest-rate-hikes-likely.html | https://www.cnbc.com/2022/10/13/inflation-remains-high-at-8-point-2-percent-more-interest-rate-hikes-likely.html |
An image of a woman holding a cell phone in front of a Huawei logo displayed on a computer screen. Canada on Thursday said it plans to ban the use of China's Huawei Technologies and ZTE 5G gearto protect national security, joining the rest of the so-called Five Eyes intelligence-sharing network.
Previously, telecoms groups like BT
and Vodafone
had been told to remove Huawei 5G equipment from their "core" by January 2023. However, some companies took issue with the measures, concerned this didn't give them enough time to strip out the equipment from their infrastructure, a costly exercise. | 2022-10-13T14:03:05Z | www.cnbc.com | UK gives telco firms more time to remove Huawei 5G equipment | https://www.cnbc.com/2022/10/13/uk-gives-telco-firms-more-time-to-remove-huawei-5g-equipment.html | https://www.cnbc.com/2022/10/13/uk-gives-telco-firms-more-time-to-remove-huawei-5g-equipment.html |
Another hotter-than-expected inflation report puts pressure on the Federal Reserve to raise interest rates even more aggressively, but that also could tip the economy into recession. Stocks declined and Treasury yields rose, after September's consumer price index showed inflation running at a 0.4% pace. The 10-year Treasury yield rose above 4% but was at 3.98% in mid morning trade. Yields move opposite price. In the futures market, traders bet the Fed would drive its fed funds to near 5% by next April, up from 4.65% Wednesday. "This is the Fed hitting the brakes hard now," said Diane Swonk, chief economist at KPMG. "Now the Fed is really taking the punch bowl away. The question is how many people are stumbling around hung over? What we don't know is when you turn on the lights after the party, what you're going to find." Swonk said she had expected the Federal Reserve to end its rate hikes when it reached 4.5% next year, but she, like the futures market, now expects the terminal rate could be more like 5%. She also notes that September was the first month where the Fed managed the full $95 billion a month rundown of its balance sheet, adding more tightening pressure to the economy. The terminal rate is the end rate where the Fed would stop its hiking for this cycle. "The Fed's job is not done," said Liz Ann Sonders, Charles Schwab chief investment strategist. "It cements 75 in November, probably keeps December in the 50 to 75 basis point range, and markets don't like it." (1 basis point equals 0.01%.) She said stocks have more of an adjustment to make, as some investors still believe the Fed could move to cut rates later next year, once it ends its hiking regime. "I still think the market, as an entity, has not quite come to grips with what the Fed is trying to drive home, which is not so much the length of time they're going to hike," Sonders said. Fed officials have been emphasizing that once they finish raising rates, they intend to hold them there to continue the fight against inflation. For markets, that could mean a bigger downward adjustment in stock prices. The September CPI was particularly troubling, since it follows a hotter-than-anticipated August report. Economists had hoped to see inflation cool, and signs that it was peaking for good. "The reality is what we saw today was August was not a glitch. It was not a fluke. It was more of a trend of more entrenched inflation, especially in the service sector, and that's what I think is so difficult about this," said Swonk. "It's much harder to fight." Consumer prices were up 8.2% on annual basis in September, after rising an also higher-than-expected 8.3% in August. Excluding food and energy, the core consumer price index accelerated 0.6% and 6.6%, respectively. The yearly gain for core was the highest since August 1982. "The higher rates go, the more difficult it's going to be. Mortgage rates just got over 7%. The higher cost of capital is further going to slow things down," said Peter Boockvar, chief investment officer at Bleakley Advisory Group. Recession warnings have been increasing, including a high profile warning this week from JP Morgan Chase CEO Jamie Dimon, who said he expects the economy to tip into a recession in the next six to nine months. "The Fed's just going to accelerate the recession. The reality is they've got to be all in. They don't have a choice," said Swonk. "You can't get out of it until you know inflation is tamed." She expects the economy to dip into recession starting later this year. | 2022-10-13T14:37:18Z | www.cnbc.com | Hot inflation report means markets face a more aggressive Fed and likely recession | https://www.cnbc.com/2022/10/13/hot-inflation-report-means-markets-face-a-more-aggressive-fed-and-likely-recession.html | https://www.cnbc.com/2022/10/13/hot-inflation-report-means-markets-face-a-more-aggressive-fed-and-likely-recession.html |
Kevin Breuninger
This is CNBC's live blog covering Thursday's hearing of the House committee investigating the Jan. 6 Capitol riot.
[The stream is slated to start at 1 p.m. ET. Please refresh the page if you do not see the player above at that time.]
The House select committee investigating the Jan. 6 Capitol riot is set to take a broader look Thursday at the plot to overturn former President Donald Trump's loss to President Joe Biden in the 2020 election.
The committee's ninth public hearing, set for 1 p.m. ET, could be its last investigative presentation in the ongoing probe. The hearing comes less than four weeks before the Nov. 8 midterm elections.
A committee aide said Thursday's hearing will examine events that took place before, during and after the riot itself, with a particular focus on Trump's state of mind and his level of involvement with the scheme to challenge the election results, NBC News reported. The nine-member panel will seek to contextualize those plans, while providing new information and witness testimony, the aide said. | 2022-10-13T14:37:24Z | www.cnbc.com | House January 6 committee hearing live updates | https://www.cnbc.com/2022/10/13/house-january-6-committee-hearing-live-updates.html | https://www.cnbc.com/2022/10/13/house-january-6-committee-hearing-live-updates.html |
Investors have been pulling money out of top performing energy positions this year and putting it into the technology sector, but some analysts say they may be moving out of oil and gas companies too soon. An ETF that mirrors the S & P technology sector has fallen 33% this year, while the ETF representing the energy sector is up 45%. So, Strategas analysts find it curious that the Technology Select Sector SPDR Fund (XLK) has seen inflows of $244 million this year, while the outperforming Energy Select Sector SPDR Fund (XLE) has seen $584 million in outflows. "Even over the last year, $2 billion went into XLK and $700 million went out of XLE," said Todd Sohn, Strategas technical strategist. Energy is the only major S & P industry sector that is higher for the year. On top of that, Strategas found that the energy sector is punching above its weight when it comes to earnings power. For instance, its 12-month trailing earnings weight among S & P 500 companies is more than double its S & P 500 market cap weight of about 5%. Sohn said the sector, therefore, could see valuations rise to the point of where they are closer to 10% of the S & P 500 market capitalization. In the past 50 years, the sector has traditionally been about 11% of the S & P 500, he said. S & P energy earnings are expected to soar 121% in the third quarter, while total S & P 500 earnings are expected to grow just 4.1%, according to Refinitiv. Technology companies are expected to see an earnings decline of 3.5%. Based on the energy sector's charts and fund flows alone, Sohn says energy still looks like a buy, including the biggest market cap companies, such as Exxon Mobil , Chevron and ConocoPhillips. Investors also need to consider that the price of crude oil could be a wild card for the sector, and it is driven by macroeconomic and geopolitical forces. Oil is off its highs of the year, but it could rise if supplies become constrained. It could also fall if there is a recession and demand drops. West Texas Intermediate crude futures rose to about $130 per barrel when Russia invaded the Ukraine earlier this year but since then fell back to the mid $70s. On Wednesday, WTI futures were at about $87 per barrel. From a chart basis, Fairlead Strategies founder Katie Stockton said West Texas Intermediate oil looks set for a push higher before returning to the recent lows. In a note Tuesday, she wrote: "We believe the rally will resume after a shallow pullback, based on improvement in our intermediate-term gauges, with a move in the high-$90s/bbl. likely before the loss of long-term momentum resurfaces, supporting an eventual return to the recent lows, which put short-term support near $76/bbl." Sohn said it may be that investors took profits in energy stocks too soon, or they were paring back energy holdings as the sector gained due to ESG [environment, social, governance] investing considerations or a distrust of the sector. "The other reason could be is that people may feel it's up a lot and they missed the move. They're wary to get involved here," Sohn said. The energy sector had been shunned by many investors, but companies have cleaned up their balance sheets and have been more disciplined about expanding drilling operations than in past cycles. "We're in a much different cycle. We're not dealing with zero interest rate policies anymore," said Sohn. "We have a Fed that is set on clearly tightening to stomp out inflation. That benefits energy. It's the wrong environment for growth, and the right environment for value, and energy would fit the bill for that." The energy ETF is up 11.2% in October, while the S & P 500 is up just 0.2% and the technology sector ETF is off 1.9%, through Wednesday's close. "Energy has by far the best trends of all the sectors," said Sohn. The XLE closed at $80.12 Wednesday. But if it could return to the $92 level, the high of the year, the charts point to a possible level of $97, the high from 2014. "It's one of the few areas that hasn't made a new high in the last eight years. The last significant high it made was in 2014," he said. Sohn said Exxon's chart looks particularly appealing. The stock retested its 2014 high briefly in June, and if it could return to the $105 level, that would be a big positive. "It's a significant breakout if you could get to that level," he said. "It would pull the XLE with it because it's 23%" of the sector. "It's the Apple of energy," he said. | 2022-10-13T14:37:48Z | www.cnbc.com | Top performing energy stocks may still be a buy based on their charts and earnings power | https://www.cnbc.com/2022/10/13/top-performing-energy-stocks-may-still-be-a-buy-based-on-their-charts-and-earnings-power-.html | https://www.cnbc.com/2022/10/13/top-performing-energy-stocks-may-still-be-a-buy-based-on-their-charts-and-earnings-power-.html |
US President Joe Biden being welcomed by Saudi Arabian Crown Prince Mohammed bin Salman at Alsalam Royal Palace in Jeddah, Saudi Arabia on July 15, 2022.
Kirby claimed, without giving examples, that other OPEC members opposed Saudi Arabia's move, and reiterated the Biden administration's vow to reexamine its relationship with Riyadh.
"The Kingdom affirms that it view its relationship with the United States of America as a strategic one that serves the common interests of both countries," it said in its statement. | 2022-10-13T15:33:47Z | www.cnbc.com | Biden admin asked Saudi Arabia to postpone OPEC cut by a month, Saudis say | https://www.cnbc.com/2022/10/13/biden-admin-asked-saudi-arabia-to-postpone-opec-cut-by-a-month-saudis-say.html | https://www.cnbc.com/2022/10/13/biden-admin-asked-saudi-arabia-to-postpone-opec-cut-by-a-month-saudis-say.html |
Ark Invest's Cathie Wood believes innovators in DNA development are the most undervalued corner of the market. "I believe that today the genomic revolution is most misunderstood and underappreciated," Wood said at Morgan Stanley's AlphaCurrents Conference last week, according to a transcript provided by the bank. "The stocks in the last year, this growth stock bear market, has ravaged the genomic space. And so we think they're ripe for the plucking," Wood said. "There are some amazing ideas out there." The innovation investor said advanced technology has brought down the costs of personalized medicine to a great extent. In the early 2000s, it cost $2.7 billion and took 13 years of computing power to figure out one person's genome, six billion bits of code in our bodies. Today it costs $500 and the price continues to fall, she said. "Why do we want to know that? Mutations are the earliest manifestation of disease," Wood said. "Prevent cancer, or at least discover it in stage one, very early stage one. We're going to see real science, scientific knowledge applied to health care." Ark Invest has a specific exchange-traded fund dedicated to this space: ARK Genomic Revolution ETF (ARKG) . Its top holdings include telemedicine firm Teladoc Health and CRISPR Therapeutics , the Basel, Switzerland-based biotech maker of gene-based medicines. Some of the companies in the fund also were involved in treatments for coronavirus, including Arcturus Therapeutics. However, the fund has wiped out half of its value this year as rising rates hit growth stocks particularly hard. ARKG skyrocketed 178% in 2020 as the pandemic boosted demand for biotech products. -CNBC's Michael Bloom contributed to this story. | 2022-10-13T15:33:53Z | www.cnbc.com | Cathie Wood says this emerging investing trend is the most underappreciated | https://www.cnbc.com/2022/10/13/cathie-wood-says-this-emerging-investing-trend-is-the-most-underappreciated.html | https://www.cnbc.com/2022/10/13/cathie-wood-says-this-emerging-investing-trend-is-the-most-underappreciated.html |
He and his lawyer Alina Habba have also said that James' investigation and suit are politically motivated.
James is a Democrat who campaigned on a promise to investigate Trump when he was president. Trump is a Republican who is considering whether to run again for the White House in 2024. | 2022-10-13T15:34:07Z | www.cnbc.com | Trump fraud suit: New York AG seeks bar on assets moving to new Trump Org | https://www.cnbc.com/2022/10/13/new-york-ag-asks-judge-to-bar-trump-from-moving-businesses-to-holding-company-amid-fraud-lawsuit.html | https://www.cnbc.com/2022/10/13/new-york-ag-asks-judge-to-bar-trump-from-moving-businesses-to-holding-company-amid-fraud-lawsuit.html |
How this 41-year-old went from 'living on credit cards' to retiring at 36 with $3 millon in California
"I don't really see retirement as the goal. I think financial independence is the goal," Jeremy Schneider says. "I want to be able to direct my time as I see fit and do the things that I feel passionate about." | 2022-10-13T17:05:24Z | www.cnbc.com | How Jeremy Schneider retired at 36 with $3 million in California | https://www.cnbc.com/2022/10/13/how-jeremy-schneider-retired-at-36-with-3-million-dollars-in-california.html | https://www.cnbc.com/2022/10/13/how-jeremy-schneider-retired-at-36-with-3-million-dollars-in-california.html |
Yet it's nearly halfway through the month and borrowers still can't apply.
The White House continues to say that the form will be available this month; however, it won't begin cancelling the loans until after Oct. 23, a delay caused by the ongoing legal challenges that have been brought against the Biden administration's plan.
Review your recent tax returns to confirm that your income fell below those thresholds in one of those years. The Education Department will be considering people's so-called adjusted gross income, or AGI, which may be different than your gross salary. To confirm your AGI for 2020 and 2021, look for line 11 on the front page of your federal tax return, known as Form 1040.
The White House also says borrowers won't need their FSA ID to apply for forgiveness, and that they can request the cancellation on a desktop computer or on their mobile phone.
However, more than 90% of people with student debt fall below the income caps, according to higher education expert Mark Kantrowitz.
Higher education law imposes fines of up to $20,000 and as many as five years of jail for fraud and false statements involving federal student aid, Kantrowitz said. | 2022-10-13T17:06:02Z | www.cnbc.com | What to know about the federal student loan forgiveness application | https://www.cnbc.com/2022/10/13/what-to-know-about-the-federal-student-loan-forgiveness-application.html | https://www.cnbc.com/2022/10/13/what-to-know-about-the-federal-student-loan-forgiveness-application.html |
The Hoover Dam water intake towers at Lake Mead, the country's largest man-made water reservoir, formed by the dam on the Colorado River in the Southwestern United States, has dropped 2 inches every day since February (26 feet in one year), are viewed at approximately 25% capacity on July 12, 2022 near Boulder City, Nevada. (Photo by George Rose/Getty Images) | 2022-10-13T17:40:06Z | www.cnbc.com | Biden unveils plan to pay farmers, cities for Colorado River cuts | https://www.cnbc.com/2022/10/13/biden-unveils-plan-to-pay-farmers-cities-for-colorado-river-cuts-.html | https://www.cnbc.com/2022/10/13/biden-unveils-plan-to-pay-farmers-cities-for-colorado-river-cuts-.html |
Do we stay in the stock market, or do we fold? I know it's hard to watch the market get whipsawed again on yet another hotter-than-expected inflation report. The numbers out Thursday morning are telling the Federal Reserve that they have more work to do to control spiraling prices. In fact, expectations are for a fourth straight 75-basis-point interest rate increase when the Fed meets next month. Expectations for a fifth 75-basis-point hike in a row are even starting to bubble up for the December meeting. I am here to tell you that we are not folding. We're going to stay invested with a decent chunk of cash—7% right now in the Investing Club portfolio. That's because we don't know when the Fed is going to win its battle against inflation — and by the time we do, the upward move, the beautiful bullish move that we all expect, would have already happened. That's just the way it is. I am sure there are some hedge fund managers lucky enough to time this one perfectly; they will have dodged, or claimed to have dodged, this nasty decline and are going to commit right before lift-off on the other side. I am sure there will be someone who will claim to have done it. We'll probably see them on CNBC. But let me tell you it's mighty hard to do so, and most will be dissembling. Market timing is a fool's game because you have to know when to get out and then you have to know when to get back in. Let me tell you a quick story about how it really works. I also shared it on the Club's October "Monthly Meeting" on Thursday. Back in 1987, before the crash, my then wife, Karen Cramer, was working at a now-defunct firm, which will remain nameless, running the trading desk. She was given orders to sell millions of shares of stock at defined prices by her overlords. They were on a plane going around the country trying to take their company public. When Karen tried to offer stock, meaning sell it on the offering side, there were no bidders no matter how low she went, until she was told to cancel the orders because the bosses didn't want to give away their stocks. She grew quite depressed because she knew that something very bad must be lurking out there, or there would be buyers at least at some prices. She had no idea what it was but she was sure it was something. We were living together – and on the second night of when her frustration was building, without telling me any of the stocks they were trying to sell, she said that there were no real bids in the market for any merchandise, that the prices were all phony that I saw on the screen and that they would not hold up under any real onslaught. I said at the time that this was too difficult to believe. The market was unsteady but there had to be buyers. She said no there weren't. She was adamant that things were about to crash, and she used that word, crash. But she had no idea why. She said she felt so certain that she had to go to her old boss, at a place where we first met, and asked him what to do. She wanted to let him know. Rather than being grateful, he was dismissive. He assured her everything was fine, just fine and that she was being overly dramatic, something she never was. She looked at me after the meeting, and she was downcast that she was given the brush off. Still, she reiterated, "You must sell everything tomorrow." I said that she had just met with the most brilliant market mind in America, one we both trusted more than anyone, and we were going to buck him? She said, "Yes we are. He isn't in the real world with me. He doesn't see what I see." And so I did it. I sold everything. No explanation. I just did it. Three days later, the stock market crashed. I was in cash for the crash. It made my career. Genius? I would say lucky. But that's not why I tell the story. I tell it because that was only one part of the equation. The second one, the untold one, was that you had to get right back in because the sell-off was based on nothing other than something stupid called portfolio insurance where sellers overwhelmed buyers. It was a trading call and Karen made it. I didn't get back in. Or at least not fast enough. I missed the easiest 30% you could possibly make because I thought the market was unsafe. It wasn't. If I stayed in or bought more, I would have been better. Now, here's another quick story. Back in 2007, I knew to tell everyone to get out before still one more crash. So, I told the audience of the "Today" show no less, to get out of the market if they needed the money in the next five years. It was, in retrospect, a brilliant call as the market was almost cut in half. But I was reviled by those who owned stock and by those who sold stock because three years later the market was above where it fell in 2007. I remember reading an article by Warren Buffett about how terrible it was to sell stocks and you should just have stayed the course. Who is right? The guy who dodged two crashes, or the guy who got in and took advantage of them. I can tell you that as much as I would like to sell everything right now because it's so painful to go to work every day, we are not in a 1987 moment, where it was better to be lucky than good as there was nothing wrong with the economy, just the market. Nor are we in 2007, where things really were falling apart. In both cases, you had to get back in. Sure, in 1987 it was the mechanics of the stock market and the economy was fine. In 2007, the economy was falling apart. Now? The Fed is going to break inflation. But we don't know from what level the inflation will be broken. I fear it will be like 1987, when I didn't get back in or 2007, where I will be blamed for getting you out and not back in. It's far better to just run a diversified portfolio, with some cash, try to sell where you can if you need to, and try to buy opportunistically when you are able to. Because the moral of those stories: You must be right twice. And that's nearly impossible. In my experience, it's a lot easier to take the pain and stay the course. (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. | 2022-10-13T17:40:12Z | www.cnbc.com | Cramer shares personal stories about the perils of market timing: You must be right twice | https://www.cnbc.com/2022/10/13/cramer-shares-personal-stories-about-the-perils-of-market-timing-you-must-be-right-twice.html | https://www.cnbc.com/2022/10/13/cramer-shares-personal-stories-about-the-perils-of-market-timing-you-must-be-right-twice.html |
The crypto industry this week cleared a massive hurdle for attracting big investors after BNY Mellon said it's officially holding crypto assets in its custody for institutions. If the current market and regulatory environment weren't so bad, a wave of new investors might now be flooding into the crypto market. Still, when things improve, the oldest bank in America will be there to facilitate all that new activity — and perhaps even a new bull run. Custody, the business of holding clients' securities for safekeeping, is probably one of the least sexy topics in the wild world of crypto, but it's been a sticking point for institutional investors wanting even a little bit of exposure to it. "Some of those institutions are deciding whether to move forward and put money in digital assets and having some brand names that have been providing custody for 225-plus years will give many of them the reassurance that it's a safe space to enter," said Adam Sporn, head of prime brokerage and U.S. institutional sales at BitGo. Crypto trading by institutional investors has been held back by their inability to do so with an incumbent custody bank, according to 70% of international asset managers, pensions, endowments, insurance providers and hedge funds that responded to a BNY Mellon sponsored study issued by Celent. In the same report, 72% said the convenience of a one-stop shop service provider is more important than a lesser-known but specialized provider. "For them to get into crypto in a meaningful way, they'd like to see a name that they recognize offering the service," Mike Demissie, head of digital assets and advanced solutions at BNY Mellon, told CNBC. Additionally, "they want to have that integrated offering from a service provider that knows what it means to offer it at scale, knows what it needs to be regulatory compliant, knows your personal needs." Who are the institutions? What do they want? The drumbeat for institutional investment in crypto has been getting louder , even in the current bear market. For years, crypto natives wondered when financial incumbents would warm to the new asset class. The mood finally began to change in early 2021 and enthusiasm has recently been ramping up. Also, Google announced earlier this week it would explore using Coinbase's service for storing and trading cryptocurrencies. In the past month, Nasdaq has launched crypto custody for institutions and Franklin Templeton, Betterment, Société Générale and other wealth managers have made forays into crypto. In August, BlackRock began allowing its clients to buy bitcoin . "A common question I get it: now that the price has gone down, this interest abated? It's quite the contrary, actually," Demissie said. "There's a sustained demand, they're launching new products that can provide exposure – some of these institutions actually have end investors on their side – and they're going to continue in the space despite the downturn." Firms with assets under management in the $500 billion to $1 trillion range indicated they're currently allocating between 23% of their portfolio on average to crypto and could see that increasing to 33% in two to five years, survey data showed. For many of them, Demissie said, crypto is a long game. Even though for many others, bitcoin has become a "boring" macro-driven asset with little utility, BNY Mellon clients have been looking beyond crypto's speculative nature. "We think of them as assets, not currencies," he said. "You've got crypto assets, digital cash, stablecoins and then you have tokenized assets. Not all of them are at the same level of maturity but there's a common theme in terms of the underlying technology: you being able to use it to seamlessly transfer." | 2022-10-13T17:40:43Z | www.cnbc.com | What BNY Mellon’s digital asset custody launch means for the crypto market | https://www.cnbc.com/2022/10/13/what-bny-mellons-digital-asset-custody-launch-means-for-the-crypto-market-.html | https://www.cnbc.com/2022/10/13/what-bny-mellons-digital-asset-custody-launch-means-for-the-crypto-market-.html |
U.S. Capitol Police Sergeant Aquilino Gonell and Metropolitan Police Department officer Daniel Hodges, who were both injured defending the Capitol and members of Congress on January 6, 2021, watch as the U.S. House Select Committee to Investigate the January 6 Attack on the U.S. Capitol play a video of former President Donald Trump declaring that he won the presidential election on election night of 2020 during their public hearing on Capitol Hill in Washington, October 13, 2022.
The reportedly upcoming vote will mark the boldest step yet for the bipartisan panel, which has so far issued more than 100 subpoenas and interviewed more than 1,000 people over the course of its investigation. | 2022-10-13T18:36:45Z | www.cnbc.com | Jan. 6 committee plans to vote to subpoena Trump during hearing, NBC reports | https://www.cnbc.com/2022/10/13/jan-6-committee-plans-to-vote-to-subpoena-trump-during-hearing.html | https://www.cnbc.com/2022/10/13/jan-6-committee-plans-to-vote-to-subpoena-trump-during-hearing.html |
Investors have a new way to bet on the commodities that are critical to a green energy future: The KraneShares Electrification Metals Strategy ETF launched on Thursday. The new fund tracks the Bloomberg Electrification Metals index and buys futures contracts on metals like aluminum, copper, zinc and lithium. It has an expense ratio of 0.79% and trades on the NYSE Arca under the ticker KMET. Metals have become a key focus of the energy transition, with rising demand for batteries, solar panels and other pieces of machinery straining the existing supply of these commodities. For example, demand for lithium — a key component in car batteries — is expected to increase more than 400% between 2021 and 2030, according to estimates from Deutsche Bank. Supply is not expected to keep with demand, which would keep upward pressure on prices for the foreseeable future. The KraneShares fund is not the only ETF on the market that gives investors exposure to these industries. For example, VanEck offers a Green Metals ETF (GMET) as well as a Rare Earth/Strategic Metals (REMX) fund, which hold individual stocks in these industries. Global X offers a Lithium & Battery Tech ETF (LIT) , which holds many companies involved in this process. There are also some funds available that can hold futures contracts for the underlying metals, such as the United States Copper Index Fund (CPER) or the Invesco DB Base Metals Fund (DBB) . | 2022-10-13T18:36:51Z | www.cnbc.com | New electrification metals ETF gives investors another way to play the energy transition | https://www.cnbc.com/2022/10/13/new-electrification-metals-etf-gives-investors-another-way-to-play-the-energy-transition.html | https://www.cnbc.com/2022/10/13/new-electrification-metals-etf-gives-investors-another-way-to-play-the-energy-transition.html |
There are several kinds of sunlight reflection technology being considered, including stratospheric aerosol injection, marine cloud brightening, and cirrus cloud thinning.
Stratospheric aerosol injection involves spraying an aerosol like sulfur dioxide into the stratosphere, and because it has the potential to impact the entire globe, often gets the most attention.
While arguments of moral hazard have handicapped research efforts so far, the idea is getting more urgent attention as impacts of the climate crisis become more extreme and deadly. "The odds are 100 percent that some country pursues sunlight reflection, particularly in the wake of seeing millions of their citizens die from extreme weather," Chris Sacca, the founder of Lowercarbon Capital, told CNBC.
The research plan will assess climate interventions, including spraying aerosols into the stratosphere to reflect sunlight back into space, and should include goals for research, what's necessary to analyze the atmosphere, and what impact these kinds of climate interventions may have on the Earth, according to the White House's Office of Science and Technology Policy. Congress directed the research plan be produced in its spending plan for 2022, which President Joe Biden signed in March.
Some of the techniques, such as spraying sulfur dioxide into the atmosphere, are known to have harmful effects on the environment and human health. But scientists and climate leaders who are concerned humanity will overshoot its emissions targets say research is important to figure out how to balance these risks against a possibly catastrophic rise in the earth's temperature.
Getting ready to research a topic is a very preliminary step, but it's notable the White House is formally engaging with what has largely been seen as the stuff of dystopian fantasy. In Kim Stanley Robinson's science fiction novel, "The Ministry for the Future," a heatwave in India kills 20 million people and out of desperation, India decides to implement its own strategy of limiting the sunlight that gets to earth.
Chris Sacca, the founder of climate tech investment fund Lowercarbon Capital, says it's prudent for the White House to be spearheading the research effort.
"Sunlight reflection has the potential to safeguard the livelihoods of billions of people, and it's a sign of the White House's leadership that they're advancing the research so that any future decisions can be rooted in science not geopolitical brinkmanship," Sacca told CNBC. (Sacca has donated to support research in the area, but has "zero financial interests beyond philanthropy" in the idea and does not think there should be private business models in the space, he told CNBC.)
Harvard professor David Keith first worked on the topic in 1989, and says it's being taken much more seriously now. He points to a formal statement of support for research from a group he advises called the Overshoot Commission. The Environmental Defense Fund, the Union of Concerned Scientists, and the Natural Resources Defense Council have also indicated support for research into the topic.
To be clear, nobody is saying sunlight reflection modification is the solution to climate change. Reducing emissions remains the priority.
"You cannot judge what the country does on solar radiation modification without looking at what it is doing in emission reductions, because the priority is emission reductions," said Janos Pasztor, the executive director of the Carnegie Climate Governance Initiative. "Solar radiation modification will never be a solution to the climate crisis."
The idea of sunlight reflection first appeared prominently in a 1965 report to President Lyndon B. Johnson entitled "Restoring the Quality of Our Environment," Keith told CNBC. The report floated the idea of spreading particles over the ocean at a cost of $100 per square mile. A one percent change in the reflectivity of the earth would cost $500 million per year, which does "not seem excessive," the report says, "considering the extraordinary economic and human importance of climate."
The estimated price tag has gone up since then. The current estimate is that it would cost $10 billion per year to run a program that cools the earth by one degree Celsius, said Edward A. Parson, a professor of environmental law at UCLA's law school. But that is remarkably cheap compared to other climate change mitigation efforts.
Stratospheric aerosol injection would involve flying aircraft into the stratosphere, which is between 10 and 30 miles up, and spraying a fine mist that would hang in the air, reflecting some of the sun's radiation back into space.
Stratospheric aerosol injection "would immediately take the high end off hot extremes," Parson said. And also it would "pretty much immediately" slow extreme precipitation events too, he said.
"The top line slogan about stratospheric aerosol injection, which I wrote in a paper more than 10 years ago — but it's still apt — is fast, cheap, and imperfect. Fast is crucial. Nothing else that we do for climate change is fast. Cheap, it's so cheap," Parson told CNBC.
There's also a precedent in factories that burn fossil fuels, especially coal. Coal has some sulfur that oxidizes when burns, creating sulfur dioxide. That sulfur dioxide goes through other chemical reactions and eventually falls to the earth as sulfuric acid in rain. But, during the time that the sulfur pollution sits in the air, it does serve as a kind of insulation from the heat of the sun.
In other words, we've been doing one form of sunlight reflection for decades already, but in an uncontrolled fashion with terrible warming effects, explains Kelly Wanser, the executive director of SilverLining, an organization promoting research and governance of climate interventions.
Cirrus cloud thinning, the third category addressed in the 2021 report from the National Academies, involves thinning mid-level clouds, between 3.7 and 8.1 miles high, to allow heat to escape from the surface of the earth. It is not technically part of the "solar geoengineering" umbrella category because it does not involve reflecting sunlight, but instead involves increasing the release of thermal radiation.
There are significant and well-known risks to some of these techniques — sulfur dioxide aerosol injection in particular.
The Montreal Protocol adopted on September 16, 1987, regulates and phases out the use of ozone depleting substances, such as hydrochlorofluorocarbons (HCFCs) which were commonly used in refrigeration and air conditioners, but that healing process is still ongoing.
Thirdly, the sulfur in the atmosphere forms very fine particulates that cause respiratory illness.
The sulfur already being emitted from the burning of fossil fuels is already causing environmental damage and is already killing between 10 and 20 million people a year due to respiratory illness, said Parson. "So that's the way we live already," he said.
"There's already too much carbon out there. And even if you stop all emissions today, the global temperature will still be high and will remain high for hundreds of years. So that's why scientists are saying maybe we need something else, in addition — not instead of — but maybe in addition to everything else that is being done," he said. "The current action/non action of countries collectively — we are committing millions of people to death. That's what we're doing."
For sunlight reflection technology to become a tool in the climate change mitigation toolbox, awareness among the public and lawmakers has to grow slowly and steadily, according to Tyler Felgenhauer, a researcher at Duke University who studies public policy and risk.
"If it is to rise onto the agenda, it'll be kind of an evolutionary development where more and more environmental groups are willing to state publicly that they're for research," Felgenhauer told CNBC. "We're arguing it's not going to be some sort of one big, bad climate event that makes us all suddenly adopt or be open to solar geoengineering — there will be more of a gradual process."
One experiment to study stratospheric aerosols by the Keutsch Group at Harvard was called off in 2021 due to opposition. The experiment would have "threaten the reputation and credibility of the climate leadership Sweden wants and must pursue as the only way to deal effectively with the climate crisis: powerful measures for a rapid and just transition to zero emission societies, 100% renewable energy and shutdown of the fossil fuel industry," an open letter from opponents said.
But proponents insist that researching sunlight modification technologies should not preclude emissions reduction work.
Keith of Harvard agrees. His goal is "simply that we learn more and develop better mechanism[s] for governance," he told CNBC. | 2022-10-13T18:37:13Z | www.cnbc.com | What is solar geoengineering: sunlight reflection, risks and benefits | https://www.cnbc.com/2022/10/13/what-is-solar-geoengineering-sunlight-reflection-risks-and-benefits.html | https://www.cnbc.com/2022/10/13/what-is-solar-geoengineering-sunlight-reflection-risks-and-benefits.html |
We reviewed our Bullpen stocks during the Investing Club's October "Monthly Meeting" on Thursday. The Bullpen is a collection of companies we actively monitor for their potential to be added in Jim Cramer's Charitable Trust, which is the portfolio we use for the Club. Here's a quick look the seven stocks and our latest thoughts on each. Barrick Gold (GOLD): Investors would think that with geopolitical tensions, inflation, and economic uncertainty, this is time for gold to shine. But the precious metal is being held back as interest rates go higher and as the dollar has strengthened. That's why we prefer to leave Barrick on our watch list, if not remove it outright in the days and weeks ahead. Gold and interest rates have an inverse relationship: When rates rise, the price of gold tends to fall and vice versa. Gold, which is traditionally viewed as a safe-haven investment in tough times, also faces stiff competition from bonds yields. The 2-year Treasury currently yields around 4.5%. Emerson Electric (EMR): We see this technology and engineering company, which has exposure to industrial, commercial, and residential markets as a "problematic" stock as its end markets slow down. The company seems to be breaking apart as a way to unlock value. In March, Emerson entered into an agreement to sell its subsidiary, Therm-O-Disc , a climate technology company. In August, EMR sold food disposal manufacturer, InSinkErator to Whirlpool, another Bullpen name. We're waiting for Club holding Honeywell International (HON) to benefit from an industrial tailwind — so, until then, we prefer to keep EMR on the sidelines. PepsiCo (PEP): This beverage and snacks giant is a timeless safety-stock due to the quality of its beverage and snacks portfolio. That's certainly a recession-resistant trait we like in a slowing economy. If we were to initiate a position Wednesday would have been a good place to start, before the company reported fiscal third quarter earnings beating Wall Street expectations and increased its forecast for the year. PEP shares surged 4% on the news Wednesday and another 3% in Thursday's strong market. We're keeping PepsiCo in mind, especially as its stands to benefit from prices of cans, bottles and plastic in general coming down. Whirlpool (WHR): We added the stock to the Bullpen as we saw potential in the strategic review of its EMEA (Europe, the Middle East and Africa) business, its roughly 4.9% annual dividend yield and its stock buyback program. However, Jim Cramer calls it a "casualty" of the housing market, which has been suffering from rising rates. Whirlpool may get hit by slower demand in a weakening economy. In its second quarter , Whirlpool's net sales in fell by 4.3% to $5.09 billion from the same period the year prior. The company is due to report Q3 earnings a week from Thursday. Palo Alto Networks (PANW): Jim has said before that cybersecurity is one of the last bull markets . "We need to get rid of something and buy Palo Alto," Jim said Thursday, though as of now the Club has not decided whether to make the move yet or even at all. The software company is favored because data security is in high demand from enterprise customers, and Palo Alto Networks is an industry leader. Airbnb (ABNB): While we've been focused on the defensive names, we think this peer-to-peer home rental platform is a disruptive tech play that will keep benefitting from growing demand for travel after years of tighter Covid restrictions. We are particularly impressed with Airbnb for its cash flow. We also like how consumers see Airbnb as an alternative, cheaper option to hotels, a positive in a weaker economy. But if there's a recession, consumers may pull back on travel spending; so we prefer to continue monitoring the company. Sempra Energy (SRE): We're interested in this diversified utilities and infrastructure company. In an economic downturn, investors tend to move to utilities for safety. We like the stock for its solid annual dividend yield of 3.12%. Shares of SRE have dropped roughly 16% month over month, possibly from its exposure to natural gas. But the stock has still gained about 8% a year when the S & P 500 has dropped nearly 23%. (Jim Cramer's Charitable Trust is long HON. 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.
Traders work on the floor of the New York Stock Exchange (NYSE) on June 27, 2022 in New York City. | 2022-10-13T20:08:11Z | www.cnbc.com | Here is an update on our 7 Bullpen stocks | https://www.cnbc.com/2022/10/13/here-is-an-update-on-our-7-bullpen-stocks.html | https://www.cnbc.com/2022/10/13/here-is-an-update-on-our-7-bullpen-stocks.html |
Facebook Chairman and CEO Mark Zuckerberg testifies before the House Financial Services Committee on "An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors" in the Rayburn House Office Building in Washington, DC on October 23, 2019.
Analysts have attributed TikTok's rapid rise in popularity due to its algorithm, which can recommend compelling short videos to users based on their habits and viewing history. TikTok's rise has posed a significant challenge to the company, which is experiencing a decline in North American Facebook users, and a stock price that's lost more than 56% this year so far.
Zuckerberg referred to TikTok as a "very effective competitor" during the interview, and acknowledged that the company was "somewhat slow to this because it didn't fit my pattern of a social thing, it felt more like a shorter version of YouTube to me," he said.
Meta will attract more buyers because it's at an attractive price, says Aureus' Kari Firestone | 2022-10-13T20:42:54Z | www.cnbc.com | Mark Zuckerberg said he missed a giant shift in social networking | https://www.cnbc.com/2022/10/13/mark-zuckerberg-said-he-missed-a-giant-shift-in-social-networking.html | https://www.cnbc.com/2022/10/13/mark-zuckerberg-said-he-missed-a-giant-shift-in-social-networking.html |
Treasury Secretary Janet Yellen says Russia's economy is projected to contract "this year and the next" due to historic sanctions.
Russia's GDP is expected to contract by 6.2% this year and 4.1% next year.
The Russian military has had to rely on Iran and North Korea for military gear amid the sanctions, says Yellen.
"The Russian economy is projected to contract this year and the next," Yellen said Thursday ahead of a meeting with European economic officials at the International Monetary Fund and the World Bank annual meeting in Washington, D.C.
Historic sanctions imposed by the U.S., the E.U. and allies against Russia for its unprovoked invasion of Ukraine have cut the nation off from Western capital markets with the larger goal of depriving Russian President Vladimir Putin of revenue to finance the war, says Yellen.
The Treasury Secretary hosted a meeting with Valdis Dombrovskis, European commission executive vice-president and trade commissioner, and Paolo Gentiloni, the European commissioner for the economy.
Russia's GDP is expected to contract 6.2% this year and 4.1% next year, according to the Economist Intelligence Unit. The projections are "huge, by both historical and international standards," Agathe Demarais, the unit's global forecasting director told CNBC in September.
The EIU also said a European boycott of Russian oil will further deplete the economy. The energy sector makes up about a third of the Russian GDP, including half of all fiscal revenues and 60% of exports, CNBC reported.
Yellen and Deputy Treasury Secretary Wally Adeyemo are promoting the G-7's strategic price cap on Russian oil at the IMF meetings this week as an effective method to deny Russia income to continue the war in Ukraine. | 2022-10-13T22:14:36Z | www.cnbc.com | Treasury's Yellen says Russia's war has weakened its economy | https://www.cnbc.com/2022/10/13/treasurys-yellen-says-russias-war-has-weakened-its-economy-.html | https://www.cnbc.com/2022/10/13/treasurys-yellen-says-russias-war-has-weakened-its-economy-.html |
President Biden recently claimed the "pandemic is over," but the extension of the public health emergency indicates the administration does not believe the U.S. is out of the woods yet.
The U.S. has extended the Covid public health emergency, a clear demonstration that the Biden administration still views Covid as a crisis despite President Joe Biden's recent claim that the pandemic is over.
Whenever the public health emergency does finally end, it will have dramatic impact on healthcare in the U.S. HHS estimates that as many as 15 million people will lose their Medicaid coverage. Hospitals also risk losing the flexibility they have come to rely on during Covid. Millions of struggling families will also lose supplemental money through the federal government's nutrition program.
"This is unacceptable, particularly because we can now prevent almost every Covid death in the country with vaccines and treatments that we have," Jha told reporters during a call. "If you are up to date on your vaccines and you get treated when you have a breakthrough infection, your chances of dying are close to zero even in that high-risk population," he said | 2022-10-13T23:10:58Z | www.cnbc.com | U.S. extends Covid public health emergency | https://www.cnbc.com/2022/10/13/us-extends-covid-public-health-emergency-.html | https://www.cnbc.com/2022/10/13/us-extends-covid-public-health-emergency-.html |
: "You are fighting the Fed with DFS. You are in the Fed's crosshairs, man. No place to be."
: "I actually like Corteva
. ... I think the ag group is ready to roll again, as in bull market mode."
: "I like it, and I'm going to stick with it. It's not big, but it's not bad."
Tellurian Inc
: "It's at $2, and stocks stop at $0. They don't go to minus $2. So, I'm okay with Tellurian."
: "I think the stock is now undervalued. ... It's a buy."
Antero Midstream Corp
: "I think Antero is terrific." | 2022-10-13T23:45:34Z | www.cnbc.com | Cramer's lightning round: You are fighting the Fed with Discover Financial | https://www.cnbc.com/2022/10/13/cramers-lightning-round-you-are-fighting-the-fed-with-discover-financial.html | https://www.cnbc.com/2022/10/13/cramers-lightning-round-you-are-fighting-the-fed-with-discover-financial.html |
With Wall Street mired in the depths of a bear market, some investors are wondering if it's time to flee stocks and hide in cash . But market veteran Nancy Tengler is unequivocal that investors should strap in for the long term. "Bear markets are no fun. But we do know that every bear market is eventually followed by a bull market and the trick is not to let the market volatility scare you out of stocks," Tengler, who is CEO and chief investment officer of Laffer Tengler Investments, wrote in a note on Oct. 11 She believes investors should seize the opportunity to put money in the "highest quality names" amid the current market weakness. "I'm not saying the market can't go lower. I think it can. But typically, when you look back at periods like this, it has always been a good time to commit capital in a very disciplined manner. Not in any hurry, but much like how you invest in your 401K — a little bit now and a little bit later. You just buy the highest quality names, many of which are on sale right now," she told CNBC "Street Signs Asia" Thursday. Tengler, a proponent of dividend growth strategies for more than three decades, believes this is a "great time" to own companies that are growing their dividends in a sustainable manner. Her firm uses what's known as a relative dividend yield (RDY) strategy to judge the value of a stock. A high relative dividend yield is a buy signal if the dividend level is expected to be sustained and increased over time. "RDY is unique because the relative nature of the RDY metric allows us to invest in fallen-angel growth companies who are committed to growing the dividend as a portion of long-term sustainable earnings growth," Tengler explained. "The beauty is we get paid to wait for the fundamentals to improve in these companies with the potential to grow faster than the average value stock." Stock picks One of her top picks is Amazon — a stock she thinks investors should own for its cloud business. Tengler said U.S. tech giant is growing its cloud segment at a rapid pace, while the company has also been able to increase its advertising rates. She acknowledged there could be some near-term volatility for the stock given competition from Target and Walmart , but said this could provide opportunities for investors to accumulate a position in Amazon for the longer-term. Tengler believes the wider tech sector will benefit from projected higher spending in software, with Microsoft likely to be the biggest beneficiary. "I think there are a lot of opportunities to pick away at some of these names in a responsible fashion. Don't chase them, but be mindful of the fact that the future and reliability of their earnings growth is very powerful. And that's going to be of interest as we enter a recession and earnings growth slows down," she said. Read more Is Meta a stock to buy or dodge? Two tech investors face off The market for EV tech is revving up — and it's a good time to cash in on these stocks, Citi says Goldman Sachs favors Tesla and another big automaker even during an economic slowdown Tengler also likes Home Depot , which she described as "highly reliable" and which has a growing dividend that currently stands at 2.7%. "If you can get 17% annualized dividend growth, as Home Depot has produced over the last five years, that's a pretty good hedge against inflation. You're getting paid to wait for things to turn around," she said. Rounding off her list is Illinois-based biopharmaceutical firm AbbVie . The company has a dividend yield of about 4% and an annualized dividend growth of 17% over the past five years, according to Tengler. "It [belongs to] a defensive sector that can serve as a barbell against some of the riskier elements of your portfolio, like consumer discretionary and technology, which we think it's time to start adding back into those two sectors. [AbbVie] provides a balance against that volatility," she said. | 2022-10-13T23:45:40Z | www.cnbc.com | Nancy Tengler says stay in stocks and reveals what to buy on the dip | https://www.cnbc.com/2022/10/14/nancy-tengler-says-stay-in-stocks-and-reveals-what-to-buy-on-the-dip-.html | https://www.cnbc.com/2022/10/14/nancy-tengler-says-stay-in-stocks-and-reveals-what-to-buy-on-the-dip-.html |
It has not been a good year for the S & P 500 . The U.S. benchmark has lost 25% of its value so far this year, putting it firmly in bear market territory. And it could still fall by "another easy 20%" from current levels, JPMorgan Chase CEO Jamie Dimon predicted on Monday . A sharp decline in equity markets is a familiar story around the world, as investors flee stocks against a backdrop of stubbornly high inflation and rising interest rates that threaten to derail global economic growth. But one index is beating the S & P 500, according to investment veteran Jeffrey Kleintop — and it's not one you might expect. "Stocks in the MSCI United Kingdom Index have outperformed the S & P 500 this year," Kleintop, chief global investment strategist at Charles Schwab, told CNBC's "Street Signs Asia" on Thursday. The MSCI United Kingdom Index, which includes large and mid-cap U.K. stocks, is down about 5% and 22% this year, in sterling and dollar terms respectively, according to Eikon data. The outperformance is due to higher earnings estimates for U.K. stocks, he explained. Indeed, the U.K has been a "surprising exception" at a time when earnings estimates are falling around the world, Kleintop said, with earnings estimates for U.K. companies continuing to trend higher in the second half of the year — particularly when compared to the S & P 500. "Analysts' consensus S & P 500 EPS estimate for 2022, at about $224, has been declining since June. But earnings for U.K. companies have continued to climb to over £230 [$256] from £170 at the start of the year," he added. Kleintop noted that a key reason for U.K earnings strength is the British pound's weakness against the U.S. dollar this year. "Historically, earnings for U.K. companies benefit from a weak pound. Currently, the largest share of revenues for U.K. companies are in dollars at 27% for the companies in the MSCI United Kingdom Index, larger than the 19% of sales that are in pounds," he said. "With most costs in pounds, the result is that U.K. businesses are seeing a positive currency contribution to their earnings growth," he added. While U.K. stocks may be a relative outperformer this year, the British economy continues to battle a slew of problems , including a currency at historic lows against the dollar, a sharp sell-off in U.K. government bonds and a near collapse in pension funds . Outperformers in a bear market So how should investors position against a backdrop of global economic uncertainty? "For investors, we continue to highlight characteristics of stocks that are outperforming in this recessionary bear market environment. Rather than focus on the one sector that has posted gains, all this year we have focused on 'quality' stocks across sectors and countries," Kleintop said. He favors short-duration stocks, which he said have been "outperforming all year by a wide margin." These stocks have more immediate cash flows, whereas long-duration stocks, also known as growth stocks, derive much of their cash flows in the more distant future. Investors, though, are more likely to find short-duration stocks outside the U.S market. They comprise about 70% of all stocks on non-U.S. indexes, according to Kleintop. "That is one reason international stocks are outperforming the S & P 500 by 800 basis points measured in local currency, even though they are lagging by 400 basis points measured in dollars thank to this year's dollar strength," he said.
Scott Schnipper4 hours ago | 2022-10-13T23:45:46Z | www.cnbc.com | These stocks are outperforming the S&P 500 — and it's not where you might expect | https://www.cnbc.com/2022/10/14/these-stocks-are-outperforming-the-sp-500-and-its-not-where-you-might-expect.html | https://www.cnbc.com/2022/10/14/these-stocks-are-outperforming-the-sp-500-and-its-not-where-you-might-expect.html |
An employee works at the Tokyo Stock Exchange in Tokyo, Japan, on Jan. 13, 2022.
in Japan was 2.37% higher in early trade, while the Topix gained 1.74%. Japan's yen plunged to its lowest levels against the U.S. dollar since 1990 overnight before paring losses, and still trading at 147-levels.
popped 1.7%. South Korea's Kospi
advanced 1.74% and the Kosdaq climbed 2.53%.
has lost 25% of its value so far this year, but could still fall by "another easy 20%," JPMorgan Chase CEO Jamie Dimon predicted on Monday. | 2022-10-14T00:42:14Z | www.cnbc.com | Asia markets: Stocks climb after Wall Street rallies, Singapore GDP | https://www.cnbc.com/2022/10/14/asia-markets-us-stock-rally-inflation-cpi-singapore-gdp-japan-yen.html | https://www.cnbc.com/2022/10/14/asia-markets-us-stock-rally-inflation-cpi-singapore-gdp-japan-yen.html |
Chinese President Xi Jinping proposing a toast at the welcome banquet for leaders attending the Belt and Road Forum at the Great Hall of the People on April 26, 2019 in Beijing, China.
"It would seem that Xi underestimated the challenges China faced in overcoming its reliance on foreign, mostly U.S. firms..."
technology policy lead, Albright Stonebridge
The country's Covid policy has contributed to a major slowdown in economic growth this year. That has led to some of China's technology giants, including Alibaba
, reporting their slowest growth on record.
Looking ahead, the latest package of U.S. controls will make a huge dent in China's technology ambitions.
Chipmakers — like Taiwanese firm TSMC
, the most advanced semiconductor manufacturer in the world —are also dependent on U.S. technology. That means any Chinese company relying on TSMC may be cut off from supply of chips.
Meanwhile, China does not have any domestic equivalent of TSMC. China's leading chip manufacturer, SMIC
, is still generations behind TSMC in its technology. And with the latest U.S. restrictions, it could make it difficult for SMIC to catch up. | 2022-10-14T00:42:20Z | www.cnbc.com | China Communist Party Congress 2022: Xi Jinping's tech policy in focus | https://www.cnbc.com/2022/10/14/china-communist-party-congress-2022-xi-jinpings-tech-policy-in-focus.html | https://www.cnbc.com/2022/10/14/china-communist-party-congress-2022-xi-jinpings-tech-policy-in-focus.html |
Buildings in the business district in Singapore. Singapore's GDP for the third quarter beat estimates, and its central bank tightened policy as expected.
Singapore's economy grew more than expected in the third quarter from the same period last year, according to advance estimates released by the government on Friday.
Separately, the country's central bank tightened monetary policy for the fifth time in a year, in line with expectations.
"Core inflation will stay elevated over the next few quarters, as imported inflation remains significant and a tight labor market supports strong wage increases," the MAS said in a statement.
The Singapore dollar
last traded at 1.4234 against the dollar. | 2022-10-14T02:13:30Z | www.cnbc.com | Singapore: Q3 GDP beats estimates, MAS tightens monetary policy | https://www.cnbc.com/2022/10/14/singapore-q3-gdp-beats-estimates-mas-tightens-monetary-policy.html | https://www.cnbc.com/2022/10/14/singapore-q3-gdp-beats-estimates-mas-tightens-monetary-policy.html |
Ben Kirby says his fund has stayed resilient this year by doing what it's always done: remembering the "power of dividends." While the S & P 500 slid into a bear market this year, down more than 25%, the Thornburg Investment Income Builder (TIBIX) declined 18.5% over the same time period, according to data from Morningstar. The co-head of investments and managing director at Thornburg said the fund, a global multi-asset portfolio focused on income, managed to protect against the worst of the downside because of its defensive tilt. While investors dumped shares of unprofitable companies this year, Kirby noted that every holding in his portfolio turns a profit, has positive cash flow, and pays a dividend. "People forget about the power of dividends, and they forget how important it is to get that current income," Kirby said. "We have a portfolio yielding about 6% on an underlying basis. So if you're collecting that income every day, which we do, that tends to be very helpful for your quarter total return, especially in a market where prices are falling." The process has also helped TIBIX, which has roughly $9.3 billion in assets, outperform over the long-term. The fund is ranked in the second quartile of funds over 1- and 3-year time frames, according to Morningstar, but climbs to the top quartile over 5- and 10-year periods. Raising fixed income Among the biggest changes that Kirby is making to his portfolio in a year marked with Federal Reserve interest rate increases and growing recession concerns, is raising the fund's fixed income allocation. Today, TIBIX has a roughly 16% allocation to fixed income, compared with "closer to 10%" over the past decade, according to the fund manager. TIBIX has averaged a 20% allocation to fixed income over the very long term, and allocated as much 45% during the height of the financial crisis. Kirby said he's comfortable raising the allocation to 20% or 25%, depending how markets move over the next several months. "We're not targeting a number exactly, but the direction is higher. And you know, I can see us going back above our long term average of 20%," Kirby said. The portfolio is broadly invested in corporate credit, while also finding some opportunity in securitized investments. "We're trying to find things that are additive to the yield of the portfolio. But at the same time, are not so far down the capital stack that there's any material chance of capital impairment in the case of a recession," he said. Still, Kirby said he's taking his time allocating more to fixed income as he finds many equities very attractive. "We're seeing value on both sides," he said. Preparing for a recession The portfolio manager said he's focusing on stock picks that would still be cheap in a recession scenario, even if earnings estimates get cut by as much as 20%. "There are pockets of the market where it seems like we're further along in pricing the earnings slowdown and we think that our portfolio has a lot of value," he added. Among the stocks in the portfolio that Kirby is most bullish on is French telecommunications stock Orange, which has a nearly 7% dividend yield and a single-digit P/E ratio. The manager expects the stock, which is trading at a low multiple, can only get a higher price-to-earnings ratio over time. He also noted that a stronger dollar helped the fund snap up the stock at a discount. It's "an interesting thing to think about in terms of diversifying outside the U.S.," he said. Kirby also expects that energy companies will continue to gain, helped by rising oil prices, as well as several years of underinvestment. The fund's single-largest position is in TotalEnergies, another French company. Going forward, Kirby expects that investors seeking defensive companies will have to find ones that aren't overvalued after their run-up this year. The investor said he still favors health care, such as pharmaceutical stocks Merck, Pfizer and Roche, but believes consumer staples, utilities and beverage stocks are overvalued. A focus on businesses with a competitive moat, strong cash generation and sustainable margins will help protect portfolios, he argues. "In a year where risk aversion has been high, people have preferred to rotate into those more defensive, resilient businesses, which is what this portfolio is built on," he said. | 2022-10-14T03:44:52Z | www.cnbc.com | This income-building fund stayed resilient this year by focusing on the 'power of dividends' | https://www.cnbc.com/2022/10/14/this-income-building-fund-stayed-resilient-this-year-by-focusing-on-the-power-of-dividends.html | https://www.cnbc.com/2022/10/14/this-income-building-fund-stayed-resilient-this-year-by-focusing-on-the-power-of-dividends.html |
European markets set to jump on UK fiscal U-turn hopes
British Finance Minister Kwasi Kwarteng (left) on Monday morning confirmed that the government would be scrapping its plans to cut tax for the country's highest earners.
European markets are set to jump on Friday as speculation abounds that the U.K. government could be about to U-turn on its controversial fiscal policies.
Finance Minister Kwasi Kwarteng flew home early from the International Monetary Fund in Washington on Thursday night as ministers convened to address the nation's economic chaos.
Reports on Thursday suggested the government could scrap the £43 billion ($48.6 billion) of unfunded tax cuts included in its so-called "mini-budget" on Sep. 23, sending stocks and the pound surging.
U.S. stock futures were higher in early premarket trade on Friday as investors await a slew of corporate earnings from the country's biggest banks.
The Bank of England on Friday will end its temporary purchases of long-dated U.K. government bonds, a support mechanism launched two weeks ago to stabilize the gilt market and rescue pension funds in the wake of the government's fiscal announcements.
is seen around 77 points higher at 6,927, Germany's DAX
is set to jump by around 212 points to 12,568 and France's CAC 40
is expected to add around 96 points to 5,975. | 2022-10-14T06:47:36Z | www.cnbc.com | Europe markets open to close: UK fiscal U-turn hopes in focus | https://www.cnbc.com/2022/10/14/europe-markets-open-to-close-uk-fiscal-u-turn-hopes-in-focus.html | https://www.cnbc.com/2022/10/14/europe-markets-open-to-close-uk-fiscal-u-turn-hopes-in-focus.html |
The British pound has whipsawed in the past month. First, it fell to an all-time low against the U.S. dollar after the U.K. government announced its "mini-budget." Now, it is at its highest level in a week on reports of a possible major U-turn in government spending plans. Early Friday, it had ticked lower to trade around $1.131. Big picture, the pound is still down by more than 17% against the dollar on concerns around the U.K.'s economy and the Bank of England's monetary policy. And of course, a strong dollar hasn't helped either . The median forecast of 22 strategists compiled by CNBC shows that £1 is expected to be worth $1.07 by year-end. The forecasts were made after the U.K. government's controversial fiscal plan , which prompted a significant sell-off in UK government bonds . Strategists at Nomura were the most bearish on the pound, expecting it to trade below parity — at $0.98 — by the fourth quarter. BMO Capital was the most bullish, expecting the pound to be worth $1.22 by the end of the year. Nomura: £1 = $0.975 Jordan Rochester, a senior G10 FX strategist at Nomura, said the rumors around whether the Bank of England might extend its bond-buying program were insufficient to reduce shorts against the pound. "The main reason why GBP should continue to fall is declining global growth expectations, risk sentiment on the back foot and the U.K.'s significant current account deficit over winter with the risks of energy blackouts," he said in a note to clients. ING: £1 = $1-$1.05 Francesco Pesole, an FX strategist at ING, said the pound looked too strong at $1.10. He said the "fragile" and "highly dysfunctional" bond markets were keeping investors away from holding sterling assets. "We expect GBP/USD to stay on a downward trend on the back of fiscal concerns in the U.K., fragility in the gilt market and a strong dollar," he added. Goldman Sachs: £1 = $1.05 The team led by Kamakshya Trivedi, head of global FX, rates and EM strategy at Goldman Sachs, thinks the pound's rebound from its all-time low against the dollar last week was due to short-term demand. However, they believe the health of the U.K. economy and the "difficult policy mix" will likely push the pound downwards over the next three months. "The market is demanding a higher risk premium on U.K. assets, and we think recent BoE and government actions suggest that policymakers will be more willing to allow this re-pricing to occur via the currency rather than significantly higher yields," the strategists said. UBS: £1 = $1.05 Dean Turner and Thomas Flury at UBS said that sterling was facing "a loss of confidence" among investors. They blamed the collapse in the currency on the government's policy of "large, unfunded, fiscal easing." "A policy mix of loose fiscal policy (with little detail on how to close the deficit) and milder monetary tightening gives investors few reasons to hold the pound," they said. In a separate note to clients on 26 September, James Malcolm, FX strategist at UBS, had advised clients to trade the volatility with three-month, 15- delta EURGBP call vol at 18. He remarked the options contract was a "standout sell, in our view." | 2022-10-14T06:47:42Z | www.cnbc.com | GBP-USD parity? Bullish and bearish forecast for UK sterling | https://www.cnbc.com/2022/10/14/gbp-usd-parity-bullish-and-bearish-forecast-for-uk-sterling.html | https://www.cnbc.com/2022/10/14/gbp-usd-parity-bullish-and-bearish-forecast-for-uk-sterling.html |
Kroger is the second largest grocer by market share in the United States, behind Walmart, and Albertsons is fourth, after Costco.
Albertsons and Kroger supermarkets
The companies said Kroger agreed to buy Albertsons for $34.10 a share in a deal valued at $24.6 billion. Albertsons shares had closed Thursday at $28.63.
Kroger is the second largest grocer by market share in the United States, behind Walmart
Grocers have also been hit hard by inflation. Food prices have jumped 11.2% from a year ago, according to the most recent Bureau of Labor Statistics data. Companies have had weigh when to pass on higher costs to customers and when to absorb them to stay competitive.
The grocery industry is highly fragmented. Privately held regional grocers, such as H-E-B in Texas and Publix in Florida, remain power players and command strong loyalty. Relative newcomers like discounters Aldi and Lidl, and Amazon
's Amazon Fresh, have attracted customers, too. Plus, some Americans stock up on food at warehouse clubs like Costco
, Walmart-owned Sam's Club and B.J.'s Wholesale
Kroger captured about 8.5% of the $1.4 trillion market for food at home in the U.S. last year, according to Morgan Stanley. Albertsons' share was about 5%. The next three big players after Albertsons are Ahold-Delhaize, Publix, Walmart-owned Sam's Club and Target. Ahold Delhaize
's banners include Food Lion and Stop & Shop, along with Fresh Direct, an online grocer that it acquired. | 2022-10-14T11:22:20Z | www.cnbc.com | Kroger agrees to buy Albertsons for $24.6 billion | https://www.cnbc.com/2022/10/14/kroger-agrees-to-buy-albertsons-for-24point6-billion.html | https://www.cnbc.com/2022/10/14/kroger-agrees-to-buy-albertsons-for-24point6-billion.html |
Pippa Stevens@PippaStevens13
Silver Peak has been producing lithium since the 1960s, and is currently the United States' only lithium production site
The price of lithium has skyrocketed as the energy and transportation sectors look to replace fossil fuel power with electrification, which requires batteries — and while there are substitutes for many battery components, lithium is critical.
Facility owner Albemarle has owned the site since 2015, and is looking to expand as lithium becomes more critical to its financial performance.
Inside America's only active lithium mine
SILVER PEAK, NV — On the edge of Western Nevada, hours from a major city and miles down private dirt roads, lies the United States' only lithium-producing plant.
The nearest town is Tonopah – population 2,179 – where a prospector discovered silver at the turn of the twentieth century. The town's mining roots are still on display, but the action has shifted to the country's largest lithium brine operation 45 minutes away.
Silver Peak has been producing lithium since the 1960s. Specialty chemicals company Albemarle
acquired the site in 2015 from Foot Mineral Company, and has owned it ever since.
Silver Peak has gained newfound attention in recent years as the energy and transportation sectors race to wean themselves off climate-warming fossil fuels. Lithium's unique properties make it the common denominator across battery technologies. Forecasts for just how much will be needed in the decades to come varies. Under the International Energy Agency's most ambitious climate scenario, lithium supply will have to grow 40-fold by 2040 from today's levels.
The U.S. used to be a leader in lithium production, but it's since ceded that position to foreign nations, including China. Now the Biden Administration has said that bringing battery supply chains back to U.S. shores is a matter of national importance, and the recently passed Inflation Reduction Act – the largest climate package in U.S. history – underscores this new push towards domestic production of vital materials.
Part of the trouble with bringing new supply online, however, is the sheer amount of land required. The scale of Silver Peak is hard to grasp from picturs. It spans 13,000 acres, and seems to appear out of nowhere, tucked between mountain ranges in the Nevada desert.
Evaporation ponds at Albemarle's lithium operation in Silver Peak, NV.
The huge site is not bustling with activity, which makes it seem even larger than it is. The sun provides much of the labor, and less than 80 people total work at the facility. But it's sites like these – vast, sweeping operations – that will power the future.
From hundreds of feet underground...to your car
What happens next depends on the lithium's end use. Lithium isn't only used in batteries, but is also found in pharmaceuticals and glass, among other things. Some of the carbonate from Silver Peak is sent to Albemarle's processing facility in Kings Mountain, North Carolina. There it can be further refined into lithium hydroxide, which is used for electric vehicle batteries. Albemarle counts major automakers, including Tesla
, as customers.
Lithium has garnered significant attention in recent months due to a sharp price spike, surging more than 700% since January 2021, according to Benchmark Mineral Intelligence. In some places, including the Chinese spot market, prices are up even more.
According to forecasts from Benchmark, 600,000 tons of lithium carbonate equivalent will be mined this year — that's 10,000 tons less than needed. By the end of the decade, the firm envisions annual supply reaching 2.15 million tons of LCE, which will lag demand by a whopping 150,000 tons.
Although lithium is not a scarce resource, getting a new mine up and running can take about seven years. These projects are capital intensive and require many permits, all of which means the industry is slow moving.
Albemarle is working on its own North Carolina mine at Kings Mountain. It's a brownfield mine – meaning it was previously producing – which the company hopes will help it speed past the hurdles that delay new projects. Albemarle also has processing facilities in the state.
Silver Peak is Albemarle's largest U.S. lithium production site at present, but it constitutes only a small portion of the company's overall lithium production. Silver Peak produces about 5,000 metric tons per year of lithium carbonate equivalent (LCE), while Albemarle's Chile operation – in the Salar de Atacama region – has the capacity to produce 85,000 metric tons per year. The operation there uses the same brine production process that was first developed in Nevada.
Albemarle is also increasing its footprint at Silver Peak. In Jan. 2021 the company announced plans to double capacity to 10,000 metric tons a year, which the company said is enough to power around 160,000 electric vehicles.
Albemarle is not just a lithium company: it also has bromine and chemicals divisions. But the lithium segment has grown in importance following the price spike and Albemarle's expansion plans. Lithium now accounts for about two thirds of the company's revenue, according to Meredith Bandy, vice president of investor relations and sustainability at Albemarle. That's up from a few years ago, when each division was about one third of overall revenue.
During the second quarter, Albemarle said net sales from its lithium division jumped 178% year over year. The company raised its full-year guidance three times between May and August, when Albemarle posted second-quarter results. The company will report third-quarter earnings on November 2.
Investors have rewarded the company's performance. The stock climbed to an all-time high on September 14, during a rocky period in the broader market. Shares have since fallen 18%, but the stock is still up about 8% for the year, with a company valuation around $30 billion.
But the most meaningful initiative, by far, is the recently passed Inflation Reduction Act. The bill, which is the largest climate funding package in U.S. history, focuses on incentives and credits aimed at accelerating the U.S.' shift towards renewable energy while also jumpstarting domestic manufacturing.
"It really does give the impetus to start focusing domestically on building that supply chain. No reason why the United States can't be a significant contributor to that supply chain with the right support, both from the government – state and federal – as well as from the industry," she said.
- CNBC's Katie Brigham contributed reporting. | 2022-10-14T11:22:26Z | www.cnbc.com | Lithium for Tesla, EVs, batteries: Touring Silver Peak, Nevada | https://www.cnbc.com/2022/10/14/lithium-for-tesla-evs-batteries-touring-silver-peak-nevada-.html | https://www.cnbc.com/2022/10/14/lithium-for-tesla-evs-batteries-touring-silver-peak-nevada-.html |
Beyond Meat plans to cut 19% of its workforce, or about 200 employees, the company said Friday in a regulatory filing.
The company also said several top executives were leaving.
Shares of the company, already down about 77% so far this year as the company struggles with declining sales, fell in premarket trading Friday. The stock earlier this week notched a 52-week low of $12.76 per share and was last seen trading for about $14.60 per share, dragging the company's market value to roughly $920 million.
The announcement came as the company also revealed its chief operating officer, Doug Ramsey, left the company weeks after he was arrested for allegedly biting a man's nose and punching a Subaru in an Arkansas parking garage. | 2022-10-14T13:28:44Z | www.cnbc.com | Beyond Meat to cut 19% of its workforce as sales, stock struggle | https://www.cnbc.com/2022/10/14/beyond-meat-to-cut-19percent-of-its-workforce-as-sales-stock-struggle.html | https://www.cnbc.com/2022/10/14/beyond-meat-to-cut-19percent-of-its-workforce-as-sales-stock-struggle.html |
Erin Black
and Dexcom
are the leaders in the CGM market, which hit $5.1 billion in revenue in 2021 and is expected to reach $13.2 billion by 2028, according to Vantage Market Research. Abbott's CGM systems, called FreeStyle Libre, generated $3.7 billion in revenue last year, with 4 million users globally.
Abbott Freestyle Libre 3 sensor
Why stem cells may be the answer to curing Type 1 diabetes | 2022-10-14T13:29:08Z | www.cnbc.com | Review: Abbott Freestyle Libre 3 CGM for diabetics | https://www.cnbc.com/2022/10/14/review-abbott-freestyle-libre-3-cgm-for-diabetics-.html | https://www.cnbc.com/2022/10/14/review-abbott-freestyle-libre-3-cgm-for-diabetics-.html |
The offices of satellite operator Inmarsat in central London.
The U.K.'s competition regulator launched an in-depth probe into American satellite internet company Viasat's
$7.3 billion deal to buy British rival Inmarsat.
The Competition and Markets Authority on Friday referred the takeover for a so-called "Phase 2" competition investigation, concerned it would make it harder for competitors such as Elon Musk's SpaceX, U.K. firm OneWeb and Canadian operator Telesat
to do business with the aviation sector.
Viasat inks $7.3 billion acquisition deal with Inmarsat
A range of companies from Elon Musk's SpaceX to Amazon
, which owns the Kuiper satellite constellation, are racing to launch satellites into space to beam internet to people in rural and hard-to-reach areas to connect to the internet. It has become a key focus for the U.K. government, which is invested in domestic satellite firm OneWeb.
But it is hard for companies to succeed in the market as it requires lots of capital and manpower. In 2020, OneWeb collapsed into bankruptcy after burning through billions of dollars in investors including Japan's SoftBank
. The company was rescued later that year with the help of the U.K. government, which kicked in $500 million as part of a bailout package.
American chipmaker Nvidia's
attempt to take over U.K. chip designer Arm unraveled after a national security review from the government and a federal lawsuit from the FCC. Meanwhile, the sale of Welsh semiconductor firm Newport Wafer Fab to a Chinese-owned company is the subject of a U.K. security probe. | 2022-10-14T13:29:11Z | www.cnbc.com | Viasat takeover of UK rival Inmarsat faces in-depth competition probe | https://www.cnbc.com/2022/10/14/viasat-takeover-of-uk-rival-inmarsat-faces-in-depth-competition-probe.html | https://www.cnbc.com/2022/10/14/viasat-takeover-of-uk-rival-inmarsat-faces-in-depth-competition-probe.html |
October has a bad rep on Wall Street, and rightfully so. This month has seen some of the biggest market swings in history, including Black Monday in 1987 — when the S & P 500 plunged 21.8% for its biggest one-day drop ever. However, this month has also seen the end of more bear markets than any other. Data from the Stock Trader's Almanac shows that, of the 23 S & P 500 bear markets since World War II, seven ended in October, more than any other month. The majority of Dow Jones Industrial Average and Nasdaq Composite bear markets have also ended in October. What's more, there are some signs that the end of this bear market could be near. The major averages on Thursday staged a massive reversal, with the Dow ending the session up more than 800 points after being down nearly 550 points to start the day. Bespoke Investment Group also noted that Thursday marked just the fifth time since 1993 that the S & P 500 fell more than 2% in a day to then close more than 2% higher. The benchmark index saw solid gains over the next month in three of the last four instances. Ryan Detrick of the Carson Group also points out that the S & P 500 closed about 5% off its intraday lows and is coming off a 52-week low. "We also saw that in March 2009, December 2018, and March 2020. Hmmm..." Detrick said in a tweet . Thursday's action "definitely gives the bulls some ammo they have been lacking much of this year. At the very least, this could give some near-term relief," wrote BTIG's Jonathan Krinsky. This is "far from an all-clear signal and we aren't yet ready to proclaim that the worst is behind us," Krinsky said. Indeed, many of the headwinds hurting the stock market aren't going away anytime soon. Inflation remains high, and the Federal Reserve doesn't expect to move away from higher interest rates in the near future. | 2022-10-14T14:25:13Z | www.cnbc.com | October living up to reputation as crazy month in which bear markets bottom | https://www.cnbc.com/2022/10/14/october-living-up-to-reputation-as-crazy-month-in-which-bear-markets-bottom.html | https://www.cnbc.com/2022/10/14/october-living-up-to-reputation-as-crazy-month-in-which-bear-markets-bottom.html |
This exec helped raise $100 million to fund Latino-owned startups: It's 'a smart economic strategy'
Sol Trujillo, of the VC firm L'Attitude Ventures.
Gillian Fry
As the U.S. slides closer to a potential recession, economists and business leaders are racking their brains for ways to improve the country's financial health.
For Solomon "Sol" Trujillo, the answer is simple: Invest in Latino-owned businesses.
In 2019, Trujillo, 70, founded L'Attitude Ventures, a venture capital (VC) firm that exclusively invests in Latino-owned businesses. Trujillo is a general partner at L'Attitude Ventures alongside former United Airlines CEO and chairman Oscar Munoz, Kennie Blanco, Laura Moreno Lucas and Gary Acosta, who is also a co-founder of the firm.
Latinos are the fastest-growing demographic of entrepreneurs in the U.S., with the potential to add 5.3 million new jobs and $1.5 trillion to the U.S. economy in the coming years, according to the Stanford Latino Entrepreneurship Initiative. By 2030, McKinsey & Co. estimates that 1 in 5 U.S. workers will be Latino.
Yet Latinos are the most undercapitalized growth cohort in the country — in 2021, U.S. startups and companies with Latino founders received less than 2% of all VC funding, according to Bain & Company.
"Instead of continuing to try to explain to people why this lack of investment is a problem and the opportunities that exist in this cohort, I decided to create the prototype that shows people how it can work," Trujillo tells CNBC Make It.
"We want people to see that there are a lot of companies that can create growth and stimulate our country's GDP with the right support."
How L'Attitude is closing the funding gap for Latino entrepreneurs
Trujillo, an international business executive who has served as CEO of three large global companies (US West, Orange and Telstra), was tired of seeing Latino founders get shut out of funding and traditional networking ecosystems in the VC world. He knew that if Hispanics and Latinos were fully, equitably included in the U.S. economy, that the gains could be tremendous.
L'Attitude Ventures provides capital and mentorship to the entrepreneurs the firm invests in as well as connections to companies and distribution channels for founders to grow their companies.
The firm closed its first institutional fund in August, raising over $100 million through a strategic anchor investment by JPMorgan Chase and investments from other big financial names including Barclays, Bank of America and Morgan Stanley.
Trujillo calls the fund an "opening salvo" for what he hopes will become an "investment boom" directed toward Latino-run businesses.
Those funds have benefited dozens of businesses throughout the U.S. including Progeny Coffee Farmers; Nopalera, a line of Mexican bath and body products; and Raddle, an online collaboration platform for small businesses.
L'Attitude Ventures also hosts an annual showcase and competition where early-stage Latino entrepreneurs are matched with capital from long-term investors. Their most recent event, which took place in September, hosted famous faces like former president Barack Obama and "Hamilton" creator Lin-Manuel Miranda.
Why investing in Latino-owned businesses 'benefits everybody'
While other firms are "well-intentioned" in expressing interest in environmental, social, and governance (ESG) investing, and giving speeches about the importance of diversity and inclusion to their mission, their investment strategies haven't caught up to the 21st century, Trujillo argues.
"Firms collect capital, then they look for opportunities in the same places as they did in the '80s and '90s. But markets and populations evolve, right?" he says. "We've found that the Latino cohort is the most productive, entrepreneurial group of all the cohorts in the U.S. … if you believe in capitalism, which I do, because I think it works 92.5% of the time, you flow capital to where the growth is, and that's not happening."
The harmful stereotypes still plaguing Hispanic and Latino Americans are partly to blame for the funding gap, Trujillo says. "People will say Latinos are uneducated, that they're not business people, they're not this or that … and that's totally wrong," he says.
The result of investing in Latino-owned businesses, Trujillo adds, is a stronger U.S. economy that "benefits everybody." Latinos' economic output in the U.S. was a whopping $2.8 trillion in 2020, a figure higher than the GDP of the U.K., India or France, according to a report by the Latino Donor Collaborative in partnership with Wells Fargo.
"What we are doing here isn't just ensuring the success of Latino-owned businesses," Trujillo says. "This is a smart economic strategy that we know will absolutely help the U.S. economy remain competitive not only now but for the rest of this century."
5 Hispanic American founders open up about their careers, heritage and closing the wealth gap: 'There's a long, hard road to success' | 2022-10-14T15:56:33Z | www.cnbc.com | L'Attitude Ventures exec on importance of funding Latino entrepreneurs | https://www.cnbc.com/2022/10/14/lattitude-ventures-exec-on-importance-of-funding-latino-entrepreneurs.html | https://www.cnbc.com/2022/10/14/lattitude-ventures-exec-on-importance-of-funding-latino-entrepreneurs.html |
'Food at home' prices are up 13% from last year: Here are 4 ways to save on groceries
Most of the hardest hit items are ones families can't do without: Eggs are up 30.5% from a year ago, while poultry is up 17.2% and milk, 15.2%.
A woman shops for chicken at a supermarket in Santa Monica, California, on September 13, 2022.
Many of the hardest-hit items are ones families can't do without: Eggs are up 30.5% from a year ago, while poultry is up 17.2% and milk, 15.2%.
Some of the most useful foods to have on hand include eggs, pasta, rice, bread, canned tomatoes, frozen vegetables and fruit, onions and potatoes, aid Leanne Brown, author of Good Enough, a self-care cookbook.
Don't show up to the supermarket without a grocery list and some ideas of what you'll be cooking for the week, said Leanne Brown, author of Good Enough, a self-care cookbook.
"Meal planning definitely reduces costs," Brown said. "If you stick to it, you don't waste food that you bought without a plan."
As a treat, she purposefully plans to buy one or two things off her list.
Take a look at your grocery list before you decide where to do your buying, said Erin Clarke, author of The Well Plated Cookbook. Then, try to find the store that offers the best value on the particular items you're looking for.
Look beyond supermarkets, too: Billy Vasquez, who runs The 99 Cent Chef blog, said he picks up many of his non-perishable items, including mayonnaise, ketchup, mustard, hot sauce, dried pasta, beans and tortilla chips, at his local dollar store.
Around St. Patrick's Day, Memorial Day and Independence Day, you can find steep discounts on items like corned beef, carrots, cabbage, turkey, duck, roasts, ham, boxed stuffing, hamburgers and hot dogs — many of which can be stored in the freezer for long periods, Vasquez said.
Year-round, generic and store-brands tend to be the cheaper varieties, Brown said, adding that, "buying more canned and frozen vegetables when many aren't in season is another evergreen choice."
Meat and dairy tend to be the more expensive items at the supermarket, and especially of late. In response, aim to make more meals that don't rely on them as the central ingredient, Brown said.
Buying foods with a longer shelf life can cut your trips to the supermarket all together. Even certain produce may last for more time than others, especially if you store it properly. | 2022-10-14T16:31:29Z | www.cnbc.com | How to save on groceries as CPI 'food at home' prices soar | https://www.cnbc.com/2022/10/14/how-to-save-on-groceries-as-cpi-food-at-home-prices-soar.html | https://www.cnbc.com/2022/10/14/how-to-save-on-groceries-as-cpi-food-at-home-prices-soar.html |
Alistair Berg | Digitalvision | Getty Images
If you've looked at your portfolio lately, 2022 may not seem like a "sweet spot" for much of anything. The S&P 500 is down more than 22% since the beginning of the year, putting it firmly in bear market territory — defined as a decline of 20% of more from recent highs.
But a "sweet spot" is exactly what Jeffrey Hirsch, a market historian and publisher of the Stock Trader's Alamanac, says investors can take advantage of now.
Hirsch sees the market's decline in the first three quarters of 2022 not as a negative but as a potential entry point for investors. That's because since 1946, the S&P 500 has gained an average of 28.2% over the next five quarters after sinking for the first three of a calendar year, with no losses, according to the Stock Trader's Almanac.
"We think the market is setting up for the best buying opportunity of the 4-Year Cycle," Hirsch recently wrote on his website.
History indicates now is a good time to buy stocks
Hirsch, whose reference guide homes in on historical cycles to give investors an idea of the ways stocks will move, thinks now is an opportunity for investors to buy for two main reasons.
October has been a "bear killer." Historically, investors have often come out of hiding in October. The S&P 500 has started to head up again during that month in 12 post-war bear markets.
No historical stock market trend is perfect: the index suffered major losses in 1978, 1979, 1989 and 1997, and you may have heard of October crashes in 1929 and 1987.
Nevertheless, October has been the highest-returning month in the S&P 500 on average since 1950, according to Stock Trader's Almanac data.
It's midterm season. Midterm years tend to be rocky ones for stocks, according to Hirsch's data, especially under Democratic presidents. While all midterm years show an average gain of 6% in the S&P 500, midterms under Democratic presidencies have an average gain of 4%. Narrow the list of midterms down to first-term midterms, and there's an average loss of 0.6%. First-term Democratic president midterms: -2.3%.
But out of that shakiness comes high historic average returns. Going back to 1949, the S&P 500 has sported an average return of 20% in the three quarters beginning in October of a midterm election year.
"We're looking at a strong fourth-quarter rally here, right in the sweet spot of the cycle," Hirsch said in a recent webinar.
Why now is a good time for long-term investors, not just traders
Investing pros will tell you to avoid making any wholesale changes to your portfolio strategy based on the expectation of short-term gains, whether those expectations are rooted in market history or not. Despite what it's done in the past, the stock market could go down in the short term.
In fact, many of the correlations that Hirsch draws in his analysis rely on the fact that the U.S. stock market has tended to go up throughout its history. And it's natural that the market tends to perform well after a prolonged period of losses, critics might say. After each bear market in history, stock prices have risen to new highs.
If you're a long-term investor, that's sort of the point. Even if you're queasy about the idea of finding the exact sweet spot, if you believe the market will continue to rise over the decades that you plan to invest, a period when stock prices are low is undeniably a great time to buy.
"No one knows where the bottom is, but we do know that stocks are on sale right now," Charles Rotblut, vice president of the American Association of Individual Investors recently told CNBC Make It.
If you have money sitting on the sidelines, financial pros recommend that you invest now, and more importantly, that you keep investing regularly. By putting the same amount of money into a diversified portfolio at a consistent clip — a strategy known as dollar-cost averaging — you guarantee that you'll buy more shares when stock prices are low and fewer when they're high.
Don't miss: Could a Phillies World Series win really trigger an economic downturn? History says yes, but logic says no | 2022-10-14T16:31:43Z | www.cnbc.com | Now is 'the best buying opportunity' for stocks, says market historian | https://www.cnbc.com/2022/10/14/now-is-a-sweet-spot-for-stocks-says-market-historian.html | https://www.cnbc.com/2022/10/14/now-is-a-sweet-spot-for-stocks-says-market-historian.html |
FTX's Sam Bankman-Fried regrets 'dumb quote' about giving $1 billion to political races
"I think my messaging was sort of sloppy and inconsistent in some cases," continued Bankman-Fried, who also founded trading firm Alameda Research.
But for now, Bankman-Fried is hitting pause on his political campaign spending, telling Politico that, "At some point, when you've given your message to voters, there's just not a whole lot more you can do."
Bitcoin, the world's biggest cryptocurrency, is down more than 50% in the last six months, and over 70% since hitting its all-time high in Nov. 2021. Meanwhile, the crypto market as a whole went from a market cap of around $3 trillion less than a year ago, to less than $1 trillion today. | 2022-10-14T17:54:04Z | www.cnbc.com | Sam Bankman-Fried backtracks from $1 billion political donation quote | https://www.cnbc.com/2022/10/14/sam-bankman-fried-backtracks-from-1-billion-political-donation.html | https://www.cnbc.com/2022/10/14/sam-bankman-fried-backtracks-from-1-billion-political-donation.html |
Club holding Morgan Stanley (MS) reported weaker-than-expected results for its third-quarter before the opening bell Thursday. But the stock, which fell nearly 5%, was being punished too harshly, given much of the difficulties reflect the realities of this year's tough macroeconomic backdrop and terrible equity market. Earnings per share of $1.47 missed the $1.49 expected by Wall Street analysts. Revenue of $12.99 billion came up short of the $13.3 billion consensus. Breaking things down further: Net-interest income rose 10% to $2.51 billion, beating expectations of $2.48 billion. Non-interest revenue fell 3% to $10.48 billion, missing expectations of $11.01 billion. Bottom line It was not the best quarter. At the firm level, management continues to execute well against massive external headwinds — and as a result, we believe Morgan Stanley remains a good investment because it stands to benefit greatly as the operating environment improves. Until that improvement, however, our patience will be rewarded via dividend payments and share buybacks, which remember are even more effective and accretive in the long-term at lower share prices. Near-term pain does lead to long-term gains when you have a buyback program at work. We sleep easier knowing the firm is well capitalized to weather an economic downturn, as indicated by its healthy Common Equity Tier 1 ratio (CET1), a measure of bank capital versus risk-weighted assets and a sign of the bank's ability to endure financial stress. On the earnings call, CEO James Gorman said, "From a markets perspective, we expect continued volatility as the Federal Reserve continues to tighten policy such to bring down inflation to acceptable long-term levels. This is an environment where it behooves management to be prudent, but balanced. Our wholesale retreat from the markets is not called for but at the same time, I must be more cautious in credit-sensitive parts of the business. Fortunately, the business model changes for the past decade or more, plus the acquisitions of Smith Barney, E-Trade and Eaton Vance put us in a position of significant relative strength and should support solid absolute performance in the months ahead." As noted in Friday's "Morning Meeting," there's no reason for the Club to rush to buy more shares just yet. However, we think the stock will provide a solid risk/reward should it break below the $75-per-share level, at which point you're looking at roughly 10x 2023 earnings estimates and locking in about a 4.1% annual dividend yield. Key metrics Before digging into the various operating segments, let's look at some key overall metrics. (We define the terms at the bottom of this section.) As referenced above, CET1 capital ratio was 14.8% versus 15% expected. Return on average tangible common shareholders' equity (ROTCE) in the third-quarter was 14.6% versus 15.1% expected. ROTCE was 15.2% ex-integration costs. Expense efficiency ratio was 74% versus 72% expected. The ratio was 73% ex-integration costs. Lower is better on this front. Tangible book value per share (TBVPS) was $39.93 versus $40.24 expected. Banking industry definitions: ROTCE is a measure of annualized earnings applicable to Morgan Stanley common shareholders as a percentage of average tangible common equity. Expense efficiency ratio is a measure of efficiency that is calculated as total non-interest expenses divided by net revenues. TBVPS is a measure of intrinsic liquidation value that removes intangibles such as goodwill. Think of goodwill as the value of the Morgan Stanley brand. Segment results Institutional Securities net revenue of $5.82 billion for Q3 missed expectations of nearly $6 billion. Total expenses came in at $4.17 billion, with nearly half related to compensation. Investment Banking revenue: $1.28 billion, down 55% year over year. Investment banking was hampered by a decline in M & A transactions. Equity underwriting was hurt by lower global equity volumes. Fixed-income underwriting was hit by a difficult macro environment that led to lower issuances. Equity revenue: $2.46 billion, down 14% from year-ago period, versus $2.72 billion expected. The year-over-year decline was driven by equity markets declines and less client activity. Fixed Income revenue: $2.18 billion, up 33% from last year and in line with expectations. The increase was attributed to "strength in macro products on high client engagement and volatility in the markets." This was the highest third quarter result for fixed income in over a decade. Importantly, on the call, management said, "Underwriting activity has not gone away, it is simply being deferred." Wealth Management net revenue of $6.12 billion for Q3 came up a bit short versus expectations of $6.15 billion. Total expenses for the segment came in at $4.46 billion, with nearly three quarters attributable to compensation and the rest driven by technology investments along with increased marketing and business development costs that reflect normalization as Covid-related restrictions abate. Asset management revenue: $3.39 billion, down 7% year over year, primarily reflecting lower market levels. Transactional revenue: $616 million, down 18%, excluding mark-to-market losses on certain employee deferred compensation plan investments. Net interest income revenue: $2 billion, up 49% thanks to higher interest rates. Other revenue: $111 million. As a reminder, net interest income (NII) is the income generated as a result of the difference between what the bank pays you in interest to keep funds with them and what they can turn around and generate on those funds. For example, the spread between what you are paid on the deposits in your savings account and what the bank charges for loans. Notably, Wealth Management added $65 billion in net new assets "in one of the most difficult quarters that [Morgan Stanley] had in 15 years," Gorman said. That brings total year-to-date net new assets to $260 billion and showcases Morgan Stanley's ability to continue to attract new assets despite the market volatility we have seen year-to-date. Investment Management net revenue of $1.17 billion for Q3 missed the $1.34 billion consensus. Total expenses for the segment came in at $1.05 billion, split nearly in half between compensation and non-compensation. Asset management and related fees: $1.27 billion, down 14%, as a result of lower assets under management (AUMs). Performance-based income and other: a net loss of $101 million, primarily driven by the markdown of a single underlying public investment in one of the bank's Asia private equity funds. Total assets under management in Q3 came in at $1.28 trillion, down 16% year over year, and down 5% from the second quarter. Capital Returns Morgan Stanley repurchased 30 million shares in its third quarter at an average purchase price of $85.79 per share, resulting in a return of capital to shareholders of $2.56 billion. Remember, back in June, the board authorized a multiyear buyback program of up to $20 billion, with no expiration date, to start in Q3. At the time, it also declared a quarterly dividend of $0.775 per share, payable on Nov. 15 to shareholders of record on Oct. 31. (Jim Cramer's Charitable Trust is long MS. 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 logo of Morgan Stanley is seen in New York | 2022-10-14T18:02:59Z | www.cnbc.com | Morgan Stanley's decline on Q3 results is too severe and may lead to a buying opportunity | https://www.cnbc.com/2022/10/14/morgan-stanleys-decline-on-q3-results-is-too-severe-and-may-lead-to-a-buying-opportunity.html | https://www.cnbc.com/2022/10/14/morgan-stanleys-decline-on-q3-results-is-too-severe-and-may-lead-to-a-buying-opportunity.html |
One of the best performing categories of the exchange-traded fund industry in 2022 eclipsed a key milestone this week, as the iMGP DBi Managed Futures Strategy ETF (DBMF) topped $1 billion in assets under management Managed futures strategies, which go short and long various contracts to make large macro bets, are one of the best performing sectors of funds in 2022. The big swings in stocks and commodities like oil have created something of a target-rich environment for the hedge funds and other vehicles like ETFs that operate in this space. In turn, that has attracted investors who have been desperate to find some way to diversify their portfolios as both the stock and bond markets have been routed. The iMGP DBi fund, which is up about 33% year to date , has seen inflows of more than $900 million this year, according to FactSet. The fund is by far the largest managed futures ETF, according to VettaFi. The iMGP DBi ETF aims to serve as something of an index fund that tracks the positions of a broad group of large managed futures hedge funds, according to Andrew Beer, founder and managing member of Dynamic Beta investments and co-manager of the fund. Beer, who previously worked at Seth Klarman's Baupost Group, said the purpose of the ETF is not to make his own macro calls but to aggregate hedge fund positions. It uses performance data from hedge funds to derive the positions likely held by large funds in key futures contracts, such as stocks, gold and oil. "They have models to decide whether crude oil is going to go up or down. Our model says how much crude oil do they own or not," said Beer. Before this year, the ETF's hedge fund-like strategy and small size made it difficult to attract new investors, Beer said. "The early adopters of this ETF were guys who really loved this space but had had bad experiences," Beer said. The goal of the fund is to limit the manager-specific risk that could come with investing in a traditional managed futures strategy and also simplify the diversification process for financial advisors, Beer said. "It's like if you want emerging markets, you don't want to pick a single stock. You want the space," Beer said. The fund, which was launched in 2019, also had positive returns in 2020 and 2021. It has a total expense ratio of 0.85%. Beer said its weekly rebalancing and focus on only the largest, most-liquid futures contracts helps to keep transaction fees low. | 2022-10-14T18:03:17Z | www.cnbc.com | This ETF topped $1 billion in assets this week as investors flock to managed futures strategies | https://www.cnbc.com/2022/10/14/this-etf-topped-1-billion-in-assets-this-week-as-investors-flock-to-managed-futures-strategies.html | https://www.cnbc.com/2022/10/14/this-etf-topped-1-billion-in-assets-this-week-as-investors-flock-to-managed-futures-strategies.html |
A customer shops for eggs in a Kroger grocery store on August 15, 2022 in Houston, Texas.
knows it needs the blessing of investors and federal regulators to pull off its $24.6 billion deal to buy rival grocery company Albertsons
If approved, the grocers would become a more formidable second place in terms of grocery market share behind Walmart
. Together, the companies would capture nearly 16% of the U.S. grocery market, according to market researcher Numerator. Walmart had roughly 21% of the market as of June 30. Albertsons is fourth place. Kroger said it anticipates closing the deal in early 2024, pending regulatory approval. | 2022-10-14T18:59:21Z | www.cnbc.com | Albertsons deal: How Kroger plans to win over regulators, investors | https://www.cnbc.com/2022/10/14/albertsons-deal-how-kroger-plans-to-win-over-regulators-investors.html | https://www.cnbc.com/2022/10/14/albertsons-deal-how-kroger-plans-to-win-over-regulators-investors.html |
Series I bonds, an inflation-protected and nearly risk-free investment, may reduce annual rates to roughly 6.48% in November, experts say.
While it's down from the current 9.62% rate through Oct. 31, it's still higher than other savings options.
Morsa Images | E+ | Getty Images
Despite a hotter-than-expected inflation report on Thursday, the annual interest rate for Series I bonds is expected to fall to roughly 6.48% in November, financial experts say.
While that's down from the current 9.62% interest through Oct. 31 and lower than the 7.12% rate offered from November 2021 through April 2022, it's the third-highest yield since I bonds were introduced in 1998.
"It's still a really good rate," said Ken Tumin, founder and editor of DepositAccounts.com, who tracks I bonds, among other assets.
Social Security cost-of-living increase will be 8.7% in 2023
TreasuryDirect sold $27 billion-plus in Series I bonds since Nov. 1 — and it's getting a makeover
Of course, the 6.48% return is an estimate until the U.S. Department of the Treasury announces new rates on Nov. 1. And you can still lock in 9.62% for six months by purchasing before November. Here's what to know about the rate change.
Fixed rate for I bonds will 'most likely be zero'
I bond rates have two parts, a fixed rate, which remains the same after purchase, and a variable rate, which changes every six months based on inflation.
The variable part is the percentage change in inflation over the past six months based on the consumer price index for all urban consumers, known as CPI-U, reported by the U.S. Bureau of Labor Statistics.
However, there's no set formula for the fixed rate, which is currently 0%, according to David Enna, founder of Tipswatch.com, a website that tracks I bond rates.
While he predicts a 50/50 chance of the fixed rate changing, he said many experts believe it won't be necessary due to existing high demand for I bonds.
"If we get to 0.3% or 0.5% [for the fixed rate], it will be somewhat a surprise," Enna said. "I think most likely it will be zero." This chart from the Treasury Department shows the history of both rates since November 2021.
New rate is still higher than other savings products
While 6.48% is lower than the past two I bond rates, it's still higher than other options for cash, like savings accounts or certificates of deposits, Tumin said.
Although interest rates are climbing, most banks still aren't paying more than 4% for a one-year CD, he said. And top high-yield savings accounts are offering even less: 3.5% at most, as of Oct. 14, according to DepositAccounts.com. The national average is 0.20%.
However, you need to know that you can't access I bond money for at least one year and there's a three-month penalty if you cash in the funds within five years. There's also a $10,000 purchase limit for electronic I bonds per calendar year, with a few options to buy more.
Still, if you need the money in the short-term, it may be better to diversify with other options to tap the funds sooner.
"If you're using it for emergency funds, it's important to ease into it," Tumin said. "Slowly ramp up, and don't put all your eggs in that basket." | 2022-10-14T18:59:33Z | www.cnbc.com | Series I bond rate expected to fall to roughly 6.48% in November | https://www.cnbc.com/2022/10/14/series-i-bond-rate-expected-to-fall-to-roughly-6point48percent-in-november.html | https://www.cnbc.com/2022/10/14/series-i-bond-rate-expected-to-fall-to-roughly-6point48percent-in-november.html |
President and Chief Executive Officer of the Federal Reserve Bank of Atlanta Raphael W. Bostic speaks at a European Financial Forum event in Dublin, Ireland February 13, 2019.
Trading by Fed officials over the past several years has been a hot-button issue. Disclosures that multiple officials had been involved in investment moves at a time when the Fed was taking steps to support markets preceded the early retirements of two regional presidents.
Bostic said that in his case the violations were not intentional and occurred because of his reliance on a third-party manager who was handling his investments. He said his investments are in accounts in which neither he nor his investment adviser can direct.
He also noted in the statement that his holdings of Treasurys in 2021 exceeded limits outlined in Fed guidelines. The Fed sets interest rates through the use of its fed funds rate, which generally have a close correlation with Treasury yields.
On top of previous regulations in place, the Fed in February added to restrictions on what its members can do. The new regulations prohibit top officials from holding individual stocks, bonds and cryptocurrencies, along with other assets. | 2022-10-14T19:34:09Z | www.cnbc.com | Federal Reserve probing Bostic's trading after blackout period transactions | https://www.cnbc.com/2022/10/14/federal-reserve-probing-bostics-trading-after-blackout-period-transactions.html | https://www.cnbc.com/2022/10/14/federal-reserve-probing-bostics-trading-after-blackout-period-transactions.html |
Social Security record 8.7% cost-of-living adjustment for 2023 could put pressure on the program's funds, some experts say
More than 70 million Social Security and Supplemental Security Income beneficiaries will benefit from those higher payments next year.
But those bigger benefit checks will cost the program, by some estimates, over $100 billion more. In 2022, the program will spend more than $1 trillion on benefits.
In June, the annual trustees report projected Social Security's trust funds will be only be able to pay full benefits until 2035, at which point just 80% of promised payments will be payable.
The increased costs may prompt Social Security's funds to reach insolvency at least one calendar year earlier than the Social Security trustees have projected, the Committee for a Responsible Federal Budget estimates.
Other experts have also expressed concerns about how the increased benefit costs would impact the program.
The trustees report released in June estimated a 3.8% COLA for 2023, based on data through February. Moreover, that same report also projected a COLA of around 2.5% for 2024.
One key reason why is that wages, while rising, have not kept pace with inflation. While inflation rose by 8.7% over the past year, real weekly wages fell by 3.8%, Biggs noted.
Consequently, the tax revenues that Social Security collects from workers will not go up as fast as the benefits the program will pay next year.
The good news is current beneficiaries will come out okay, as the higher COLA leads to bigger Social Security checks in the near term.
But it's up to Congress to evaluate the program's long-term future and decide what Social Security's role in providing retirement income should be, Biggs said. | 2022-10-14T19:34:22Z | www.cnbc.com | Social Security 8.7% cost-of-living adjustment may affect its solvency | https://www.cnbc.com/2022/10/14/social-security-8point7percent-cost-of-living-adjustment-may-affect-its-solvency.html | https://www.cnbc.com/2022/10/14/social-security-8point7percent-cost-of-living-adjustment-may-affect-its-solvency.html |
Wells Fargo (WFC) reported better-than-expected third-quarter results before the market opened Friday, bolstering shares, and validating the Club's bullish investment case for the lender. Total revenue rose by 2.5% year-on-year, to $19.5 billion, beating analysts' expectations for $18.78 billion in revenue. Earnings-per-share of $1.30 (excluding a $2 billion, or $0.45 per share, headwind from accruals for litigation, customer remediation, and regulatory matters) exceeded estimates of $1.09 a share. Bottom line A strong quarter for Wells Fargo played into our bullish thesis: Higher interest rates are having an outsized impact on the bank's net interest income, while management's operating efficiency initiatives have cut down on the expense base. The combination of these two factors should allow the bank to increase its earnings capacity in future quarters. Meanwhile, its credit quality remains strong. On Friday, Wells Fargo management spoke positively about the health of the consumer, thanks to historically low delinquencies and higher payment rates across the bank's portfolio. Though we remain positive on the lender long-term, if an investor doesn't already own the stock, we would advise exercising patience here. Wells Fargo is one of the top-performing stocks in the S & P 500 Friday in a downward day for the broader market, and we don't recommend chasing stocks. Wells Fargo was trading up nearly 3% in midday trading, at around $43.40 a share. Key company metrics Before digging into the various operating segments, let's take a quick look at how some key overall metrics stacked up in the third quarter. Net interest income: $12.1 billion, up 18.6% quarter-over-quarter and 36% year-over-year, compared with the consensus estimate of $11.6 billion. Net interest margin: 2.83%, compared with 2.03% during the same period a year prior, and above the consensus estimate of a 2.68% Non-interest income: $7.407 billion, ahead of expectations of $7.112 billion, but down 25% year-on-year. Non-interest expense: $14.327 billion, up 7.7% year-over-year and up 11% over last quarter, versus a $12.62 billion consensus estimate. That figure includes $1.7 billion in operating losses related to the bank's legacy issues, without which total expenses would have declined due to efficiency initiatives. Return on average tangible common equity (ROTCE)*: 9.6%, below analysts' forecasts of 12.5%. Efficiency ratio*: 73%, up from 71% last year, above analysts' expectations for 67.7%. Average loans: $945.5 billion, up 11% year-over-year and 2% from the second quarter, in line with analysts' expectations. Period end loans increased for the fifth consecutive quarter. Average deposits: $1.4 trillion, down 3% year-over-year, in line with analysts' forecasts. Tangible book value per share (TBVPS)*: $34.27, down 4% year-on-year and down 1% from last quarter. Provisions for credit losses: $784 million, well ahead of analysts' expectations for $572 million, and up from $580 million last quarter. * Financial definitions for bank stocks : ROTCE is a measure of annualized earnings applicable to Wells Fargo common shareholders as a percentage of average tangible common equity. Efficiency ratio is a measure of efficiency that is calculated as total non-interest expenses divided by net revenues. TBVPS is a measure of intrinsic liquidation value that removes intangibles such as goodwill. Segment results Consumer Banking and Lending total third-quarter revenue was $9.27 billion, up 5% over last year and up 9% over last quarter. Consumer and small business banking (CSBB) revenue increased 29% year-over-year, primarily due to higher rates and deposit balances. Within consumer lending, home lending was down 52% from last year, while credit card revenue increased 8% over last year. Auto loan revenue was down 5% year-over-year and personal lending increased 9% from last year. Commercial Banking third-quarter revenue soared by 42% year-over-year, to $2.952 billion. Middle market banking revenue of $1.793 billion represented an increase of 54% over the same period last year, on the back of higher interest rates and loan balances. Asset-based lending and leasing revenue of $1.159 billion increased 27% year-over-year thanks to higher net gains from equity securities, higher loan balances, and higher revenues from renewable energy investments. Non-interest expenses increased 9% year-over-year, primarily due to higher operating costs and operating losses. Corporate and Investment Banking third-quarter revenue climbed by 20% year-over-year, to $4.06 billion. Total banking revenues increased 28% year-over-year and 24% from last quarter, a result of higher interest rates. Investment banking fees were down year-over-year but increased from the second quarter. Commercial real estate revenue increased 29% year-over-year and 14% from the second quarter. Markets revenue was up 6% year-over-year and 4% from the second quarter. Non-interest expenses increased 6% year-over-year but were up only 3% from the second quarter, partially due to higher operating costs. Wealth and Investment Management third-quarter revenue was $3.665 billion, up 1% year-over-year. Net interest income jumped 71% year-over-year and 19% from the second quarter, due to higher rates. Non-interest income, however, fell 14% year-over-year and 8% from the second quarter, a result of lower asset-based fees. Non-interest expenses fell 4% year-over-year due to lower revenue-related compensation and efficiency initiatives. Fourth quarter and future outlook We have stood behind Wells Fargo despite concerns over a potential recession because it's the most interest-rate sensitive bank among its peers. We also have confidence in management's ability to reduce expenses, unlike other banks struggling to keep costs down. That's why we were pleased to see management provide an upside guide to both net interest income and expenses for the fourth quarter. Wells Fargo now sees full-year net interest income 24% higher than in 2021, up from a previous estimate of 20% growth. The bank expects fourth-quarter net interest income to be approximately $12.9 billion, beating analysts' estimates of $12.42 billion. Wells Fargo anticipates expenses to come in around $12.3 billion in the fourth quarter, below analysts' forecasts for expenses of $12.5 billion. It's important to note this outlook does not include any future operating losses related to historical obligations. Looking ahead to 2023, management plans to provide a net interest income- and expense outlook for next year when it reports fourth-quarter results. The hope for the bulls is that 2023 net expenses will be lower than 2022 levels, excluding losses. But management reiterated Friday the importance of balancing investing in the business with cutting costs. As expected, there was no formal update about when Wells Fargo management expects the Federal Reserve to lift its mandated asset cap, a punishment tied to the bank's 2016 fake accounts scandal. We believe management is working tirelessly to resolve outstanding issues and that it's a question of when, not if, the asset cap is lifted. At that point, Wells Fargo will be able to pursue higher returns on asset opportunities and grow its loan book, facilitating stronger earnings. Capital returns Wells Fargo did not repurchase any stock for the second quarter in a row, consistent with management's commentary last month at a conference. This comes despite an authorization of $18 billion and the bank's Common Equity Tier 1 (CET1) ratio of 10.3% being well above its regulatory minimum and buffers of 9.1%. The bank wants to be more "conservative on capital rather than less conservative" due to various economic uncertainties and the potential for big swings in its Accumulated Other Comprehensive Income (AOCI). (Jim Cramer's Charitable Trust is long WFC. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
A man walks past a Wells Fargo Bank branch on a rainy morning in Washington.
Gary Cameron | Reuters
(WFC) reported better-than-expected third-quarter results before the market opened Friday, bolstering shares, and validating the Club's bullish investment case for the lender. | 2022-10-14T19:34:34Z | www.cnbc.com | Wells Fargo's third-quarter earnings show why bank is key Club pick | https://www.cnbc.com/2022/10/14/wells-fargos-third-quarter-earnings-show-why-bank-is-key-club-pick-.html | https://www.cnbc.com/2022/10/14/wells-fargos-third-quarter-earnings-show-why-bank-is-key-club-pick-.html |
Medieval Times filed a suit claiming that its employees' union is infringing on its trademark.
The company says Medieval Times Performers United and its branding are confusingly similar to the dinner-and-show venue.
Other unions bear the name of their associated corporation, including Starbucks Workers United, as well as the recently formed Home Depot Workers United.
The restaurant-and-show chain is suing its employees' New Jersey union for allegedly infringing on its trademark by using the Medieval Times name.
The complaint, filed Thursday in a New Jersey federal court, alleges that possible confusion with the union, Medieval Times Performers United, threatens the "established goodwill" of the dining and jousting venue and creates an inevitable association between the union and the company.
The restaurant also takes issue with the fact that the union claims to be located "at or near the Medieval Times castle" grounds in Lyndhurst, New Jersey, where the performers work. In the filing, the company included about half a dozen photos of its castles, which it says it has owned and operated for nearly 40 years.
Medieval Times, which is privately owned, is seeking an injunction on the infringement and payment from the unionized castle workers for damages, attorney's fees and unjust profits made under the Medieval Times name. There is no indication that the union has any consumer-facing business.
Medieval Times Performers United on Thursday called the complaint a "frivolous lawsuit" and "unlawful thuggery."
"It is a grotesque attempt to retaliate against workers for exercising their legally protected right to form a union and bargain collectively," the union said in its statement. "But it will fail."
Organizations such as these unions are entitled to "nominative fair use," which allows them to use the name as means of identifying the group and its association with the company, Matheson said.
She noted that Medieval Times doesn't hold a trademark on the castle imagery and red-gold color scheme that is noted in the filing, but said it likely wouldn't matter even if it did, because potential customers are not at risk of confusing the two organizations.
Trademark "is a consumer protection statute and consumers are not involved," Matheson said. "If the union were engaged in commercial activities that were trading on the employer, that would be a bit of a different horse."
Many other unions bear the name of their associated corporation, including Starbucks Workers United, as well as Trader Joe's United and the recently formed Home Depot Workers United.
"It's a sensitive topic that most employers don't want to take on, they don't want the bad PR," Matheson, whose firm has previously represented both plaintiffs and defendants in similar claims, told CNBC. "Honestly, given how much difficulty so many organizations are having finding employees these days, it's very interesting that Medieval Times chose this route."
Matheson's firm isn't involved in the Medieval Times case, but represents Starbucks on some matters. | 2022-10-14T20:30:56Z | www.cnbc.com | Medieval Times sues union over trademark infringement | https://www.cnbc.com/2022/10/14/medieval-times-sues-union-over-trademark-infringement.html | https://www.cnbc.com/2022/10/14/medieval-times-sues-union-over-trademark-infringement.html |
Fox owns conservative network Fox News and Fox broadcasting. News Corp. owns The Wall Street Journal's publisher, Dow Jones, and HarperCollins.
Rupert Murdoch is exploring whether to put his media companies News Corp.
back together, according to News Corp.
Fox Corp., which was left over from the $71.3 billion 21st Century Fox sale to Disney in 2019, owns right wing networks Fox News and Fox Business, which is a CNBC competitor.
CNBC has reached out to Fox and News Corp. for comment. "Neither the Company nor the Special Committee intends to comment on or disclose further developments regarding the Special Committee's work unless and until it deems further disclosure is appropriate or required," News Corp. said in its statement Friday.
The Murdoch family has a 42% voting stake in Fox and a 39% voting stake in News Corp., according to the Journal. Fox's market value is about $17 billion, while News Corp.'s is about $9 billion, as of Friday's close. Class A shares of News Corp. rose more than 3% after hours, while Fox's Class A shares barely moved. | 2022-10-14T22:02:21Z | www.cnbc.com | Rupert Murdoch explores reuniting Fox and News Corp | https://www.cnbc.com/2022/10/14/rupert-murdoch-explores-putting-fox-and-news-corp-back-together.html | https://www.cnbc.com/2022/10/14/rupert-murdoch-explores-putting-fox-and-news-corp-back-together.html |
A shopper looks at a wall fully occupied with iPhone case covers at the American multinational technology company Apple store in Hong Kong. China's consumer prices rose at a slower-than-expected pace in August amid heatwaves and Covid-19 flare-ups, while producer inflation eased to the lowest since February 2021, official data showed.
store in Oklahoma City voted on Friday to join a union, marking the second unionized Apple store in the U.S. | 2022-10-15T02:36:16Z | www.cnbc.com | Apple workers in Oklahoma vote for company's second U.S. union store | https://www.cnbc.com/2022/10/14/apple-workers-in-oklahoma-vote-for-companys-second-us-union-store-.html | https://www.cnbc.com/2022/10/14/apple-workers-in-oklahoma-vote-for-companys-second-us-union-store-.html |
"No one wants nuclear, no one wants solar panels [and] no one wants windmills, but we need it to do this energy transformation," van Eck said. "That's going to be super supportive for energy
over the next couple of years."
It's not just exchange-traded fund investors seeing upside. On Friday, BofA
Securities reiterated its recommendation to overweight energy. The firm ranks energy as No. 1 in its "tactical sector framework."
fell almost 8% this week to $85.61 a barrel. But it's still up almost 14% year to date. | 2022-10-15T15:22:09Z | www.cnbc.com | The oil trade may have more juice despite a losing week | https://www.cnbc.com/2022/10/15/the-oil-trade-may-have-more-juice-despite-a-losing-week.html | https://www.cnbc.com/2022/10/15/the-oil-trade-may-have-more-juice-despite-a-losing-week.html |
Published Sat, Oct 15 20222:41 PM EDT Updated 25 Min Ago
A smartphone with the Starlink logo displayed on the screen.
It was not immediately clear whether Musk, who is also the CEO of Tesla
, was being sarcastic. In response to a tweet about the move, Musk said, "we should still do good deeds." Responding to another tweet saying that Musk had already paid taxes that are funding Ukraine's defense, he said, "Fate loves irony." | 2022-10-15T19:34:28Z | www.cnbc.com | Elon Musk tweets on Starlink: 'We’ll just keep funding Ukraine govt for free' | https://www.cnbc.com/2022/10/15/elon-musk-tweets-on-starlink-well-just-keep-funding-ukraine-govt-for-free.html | https://www.cnbc.com/2022/10/15/elon-musk-tweets-on-starlink-well-just-keep-funding-ukraine-govt-for-free.html |
Published Sat, Oct 15 20224:57 PM EDT
Mark Kelly's campaign raised just over $21 million from July 14 until Sept. 30, records show.
Blake Masters, who was endorsed by former President Donald Trump, brought in over $4.7 million over that same time period.
Kelly's campaign went into October with over $13 million on hand while Masters, who's backed by Peter Thiel, had just above $2.8 million in his war chest.
Democratic U.S. Senator Mark Kelly of Arizona, running for re-election to the U.S. Senate in the 2022 U.S. midterm elections, appears in an undated handout photo obtained by Reuters on October 5, 2022.
Handout | Via Reuters
Democratic Sen. Mark Kelly outraised his opponent, Republican Blake Masters, in the third quarter, according to Federal Election Commission Records.
Kelly's campaign went into October, weeks before the midterm elections, with almost six times the amount of cash on hand.
Kelly's campaign raised just over $21 million from July 14 until Sept. 30. Masters, who was endorsed by former President Donald Trump, brought in over $4.7 million over that same time period.
Kelly's campaign went into October with over $13 million on hand while Masters had just above $2.8 million in his war chest. One of Masters' top individual donations was a $4,950 contribution from the National Rifle Association. Masters, a wealthy businessman, contributed over $570,000 last quarter to his own campaign.
The race was once seen as a strong pickup opportunity for Republicans in the battle for control of the Senate, but Kelly has been ahead in many of the most recent polls. A RealClearPolitics polling average has Kelly ahead by 4.5 points. The Cook Political Report marks the race as "lean Democrat."
Former U.S. President Donald Trump shakes hands with U.S. Senate candidate Blake Masters (R-AZ) on stage during a rally ahead of the midterm elections, in Mesa, Arizona, October 9, 2022.
The Senate is split 50-50, with Democrats having to rely on Vice President Kamala Harris for tie-breaking votes.
A spokesperson for Kelly's team pointed CNBC to a recent statement by campaign manger Emma Brown touting the senator's fundraising haul. A spokeswoman for the Masters campaign did not return a request for comment.
The lag in Masters' fundraising versus Kelly has been a theme throughout the campaign. The nonpartisan Center for Responsive Politics shows that going into the third quarter, Kelly had raised over $52 million while Masters had brought in just under $5 million.
The fundraising in the most recent quarter by both campaigns doesn't include the amount raised by outside groups supporting each candidate. Saving Arizona, a pro-Masters super PAC that once saw $15 million from Masters' ally and former boss, billionaire Peter Thiel, raised over $4 million from mid-July through the end of September. The super PAC, which can raise and spend an unlimited amount of money, has over $1.9 million on hand.
Although Thiel did not contribute to the super PAC last quarter, some of the more recent top donations include a $3 million contribution from shipping supply magnate Richard Uihlein and $1 million from cryptocurrency executives Tyler and Cameron Winklevoss.
Thiel has signaled that, with Masters behind Kelly in both fundraising and the polls, he'll continue to fundraise for his former employee. Masters was until earlier this year the chief operating officer at Thiel Capital. | 2022-10-15T21:27:36Z | www.cnbc.com | Arizona Senate: Mark Kelly outraises Blake Masters ahead of midterms | https://www.cnbc.com/2022/10/15/arizona-senate-mark-kelly-outraises-blake-masters-ahead-of-midterms.html | https://www.cnbc.com/2022/10/15/arizona-senate-mark-kelly-outraises-blake-masters-ahead-of-midterms.html |
China's President Xi Jinping kicks off the ruling party's 20th National Congress — held once every five years — with an opening speech at the Great Hall of the People in Beijing on Oct. 16, 2022. The week-long event is expected to pave the way for him to stay on for an unprecedented third five-year term.
The West needs a better economic relationship with China, says Anthony Scaramucci | 2022-10-16T09:38:33Z | www.cnbc.com | China's Xi downplays need for rapid growth, praises Covid achievements | https://www.cnbc.com/2022/10/16/chinas-xi-downplays-need-for-rapid-growth-proclaims-covid-achievements.html | https://www.cnbc.com/2022/10/16/chinas-xi-downplays-need-for-rapid-growth-proclaims-covid-achievements.html |
If you purchased a bicycle to stay fit during the pandemic, you likely don't need another one. The same likely goes for that new sofa, the fire pit and all those scented candles. But if you brought home a puppy or adopted a kitten, that bundle of fur still needs to be fed and entertained, and that's helping to support what AllianceBernstein analysts on Friday called "one of the most exciting consumer categories" out there: pet care. The bottom line: Don't expect a pandemic bust here. As CNBC Pro has previously reported, pet ownership in the U.S . is booming, and will help sustain a higher level of sales in the coming years. Morgan Stanley research has found that there are about 5 million more pets in the U.S. than there were in 2019. However, that 4% increase in pet ownership has resulted in an 11% gain in pet spending, it said. AllianceBernstein also expects more doting U.S. pet "parents" to support sales growth in the coming years. But it called out two other factors that will prop up the industry that may not be fully appreciated by investors, and cited Symrise , a German supplier of flavors and fragrances, as an under-the-radar way to play the trend. Key to AllianceBernstein's argument is the fact that consumers — particularly millennials and Gen Z — love pampering their pooches and coddling their cats. All this love and affection is translating into a shift to more premium food that's on par with what humans feed themselves. Also, pet ownership and all the consumption it drives is becoming a more global phenomenon, and rising rates of pet ownership and spending from Latin America and Asia Pacific will drive sales growth in the coming years. "Despite now being [circa] 30 months away from the start of the pandemic, pet care is still going strong," AllianceBernstein analysts wrote. "In the 52 weeks leading up to the 24th September 2022, Nielsen data tells us that the 12-month year-on-year increase in pet food spending was +14.2% in the US." That pace is faster than 8% global growth rate from 2021 to 2022 predicted by Euromonitor and Bernstein analysis, the report said. Symrise is well-positioned to benefit from both the premiumization and globalization trends, the analysts said. It owns Diana Pet Foods, and is the leading pet food ingredients company. It also understands the human food market and has a segment directed to pet health care. Symrise is in the process of expanding its North Amercian headquarters in Hodges, South Carolina, as it looks to grab more business in the region. In March, it also announced the acquisition of Shanghai-based Wing Pet Food. The company doesn't disclose the size of its pet business, but the analysts said the company recently said the unit is growing at a mid-teens pace. "... As the only global pet food ingredient player, it has first mover advantage and presence in high-growth emerging markets," the analysts wrote. They also noted that many pet food companies are start-ups and can tap the experience that a seasoned player like Symrise can share. Among those products are foods that need to be refrigerated or frozen. Some products are also indulgent — think, Pawsecco, a "wine" for dogs — so pet parents don't have to snack or sip alone. Others tout health benefits. This includes a wide array of supplements including KittyRade, a chicken-flavored prebiotic drink for cats that promotes hydration that AllianceBernstein cited, as well as a large number of CBD products. Larger multinational food companies are also in the pet foods space. The analysts noted that Nestle's pet care business has been outperforming the industry's global growth rate. The company operates a number of brands under the Purina umbrella. Other companies with pet foods business include J.M. Smucker , the owner of brands such as 9Lives and Meow Mix for cats and Kibbles 'n Bits and Milo's Kitchen for dogs. General Mills owns Blue Buffalo. General Mills shares are up 15% year to date, while Smucker shares have gained 3.8% year to date.
Stocks are giving some clues that there could be a Republican congressional sweep, Strategas says | 2022-10-16T12:11:02Z | www.cnbc.com | This pandemic consumer trend is still going strong. How to get behind it | https://www.cnbc.com/2022/10/16/this-pandemic-consumer-trend-is-still-going-strong-how-to-get-behind-it.html | https://www.cnbc.com/2022/10/16/this-pandemic-consumer-trend-is-still-going-strong-how-to-get-behind-it.html |
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