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Professor Monica Trujillo holds up wastewater samples at a lab at Queens College on August 25, 2022, in New York City. Since the first polio case was identified in July in New York's Rockland County, the disease has been detected in New York City sewage, suggesting the virus is spreading.
"We are in discussions with our New York State and New York City colleagues about the use of nOPV," said Dr. Jannell Routh, the CDC's team leader for domestic polio, referring to the novel oral polio vaccine.
"It will be a process. It's not something that we can pull the trigger on and have it appear overnight," Routh told CNBC. "There will be lots of thought and discussion about the reintroduction of an oral polio vaccine into the United States," she said.
Scientists believe this latest outbreak was caused by someone who was vaccinated with the live virus overseas and started a chain of transmission that eventually found its way to the U.S. Sewage samples in New York are linked to earlier samples in London and Jerusalem. It's unclear where the transmission began originally. While the oral vaccine doesn't normally cause polio that paralyzes people, this one did because it was able to mutate into more virulent strains while spreading across among people who weren't vaccinated.
The CDC has set up a work group within its committee of independent vaccine advisors to develop criteria for when the novel oral polio vaccine might need to be used to stop the current outbreak in the New York City area and potential future ones. The work group met publicly for the first time on Wednesday.
The U.S., if needed, would use the novel oral polio vaccine which is a safer and newer version that is more stable and carries a much lower risk of mutating into a virus strain that can spread and cause disease in people who are unvaccinated.
New York State Department of Health has detected poliovirus in sewage dating back to April and as recently as September in several counties in the New York City area. The virus has been detected in 70 sewage samples across Rockland, Sullivan, Orange, Nassau, Kings and Queens counties. | 2022-10-21T19:41:22Z | www.cnbc.com | CDC is discussing using oral polio vaccine for first time in 20 years to stop New York outbreak | https://www.cnbc.com/2022/10/21/cdc-is-discussing-using-oral-polio-vaccine-for-first-time-in-20-years-to-stop-new-york-outbreak.html | https://www.cnbc.com/2022/10/21/cdc-is-discussing-using-oral-polio-vaccine-for-first-time-in-20-years-to-stop-new-york-outbreak.html |
Electric buses at a charging station.
New: President Joe Biden On Electric Vehicle Charging Stations
If you had a flower shop, for example, and you want to get flower-delivery vehicles, you buy a bunch of vans, you'd be the one claiming the tax credit.
policy director at Plug In America | 2022-10-21T19:41:34Z | www.cnbc.com | The $40,000 electric vehicle business tax credit may be easy to get | https://www.cnbc.com/2022/10/21/why-an-electric-vehicle-tax-credit-for-business-owners-may-be-relatively-easy-to-get.html | https://www.cnbc.com/2022/10/21/why-an-electric-vehicle-tax-credit-for-business-owners-may-be-relatively-easy-to-get.html |
Shopify 's valuation will likely continue to be hurt by the uncertain economic outlook even if its bottom line isn't showing warning signs, RBC said. "While macro uncertainty and higher risk-free rates are likely to continue to weigh on Shopify's valuation through the end of 2022, we believe Shopify is one of the most compelling long-term growth stories in our coverage universe," analyst Paul Treiber said in a note to clients. He cut Shopify's price target to $55 from $60 despite keeping the stock at an outperform. The revised target implies the stock could almost double in value from closing price of $29.75. Investors have been shying away from stocks that are thought to be risky given rising interest rates and the threat of a possible recession, which would slow consumer spending. These stocks include companies like Shopify that haven't had a long track record of profitable growth. But Treiber says there is a chance Shopify will top both RBC and Wall Street's expectations for third-quarter revenue growth, when it reports its results on Thursday. Current predictions are at $1.34 billion, but he expects revenue to be closer to $1.4 billion. Data shows e-commerce spending has remained strong in the third quarter, Treiber said, citing U.S. Census Bureau retail sales data as a factor. That report showed non-store sales rose 14% in the period from a year ago. Separately, a report from Mastercard's SpendingPulse said third-quarter online spending has risen 10% year over year, which is a much faster pace than in the prior quarter. Treiber also predicts Shopify is likely to reiterate its 2022 forecast, which calls for its growth to outperform industry trends in the second half of this year and for it to sign up more merchants to its network than it did in the first half of the year. Shopify shares closed Friday at $29.75. Even if the stock's current price nearly doubled, it would still be worth about half its 2022 starting value, given its nearly 79% decline so far this year. — CNBC's Michael Bloom contributed to this report. | 2022-10-21T20:38:03Z | www.cnbc.com | RBC calls this stock the most compelling long-term growth story it covers | https://www.cnbc.com/2022/10/21/rbc-calls-this-stock-the-most-compelling-long-term-growth-story-it-covers.html | https://www.cnbc.com/2022/10/21/rbc-calls-this-stock-the-most-compelling-long-term-growth-story-it-covers.html |
Earnings are off to a surprisingly decent start. Next week is the big test for tech
Stocks rallied this week as earnings season ramped up and is so far off to a better-than-expected start. With 20% of the S & P 500 having reported financials so far, sales results have thus far been 1.4% above expectations while earnings results are 5.4% above expectations, in aggregate. While the estimates have come down in recent weeks, it could signal that investors are becoming a bit too bearish in the near term. This could set us up for more upside should subsequent results also come in better than feared. The three major averages are finished up for the week. The S & P 500 and the Dow Jones Industrial Average gained more than 4%, while the Nasdaq Composite rose 5.2% The bond market, however, remains in the driver's seat. The rising 2-year Treasury, which hit a 15-year high of 4.6% on Friday, weighed on stock prices. That inverse correlation between bond yields and stocks was powerful enough to trump positive earnings reports. As a result, we were pacing for a relatively flat week heading into Friday. But the averages caught a bounce following a report in The Wall Street Journal that hinted at the Federal Reserve may slow the rate of hikes after the expected 75 basis points at the next meeting on Nov. 2, reducing the potential for sharper and longer slowdown. Though that's not exactly a pivot, it would represent a shift away from the hawkish stance the Fed has maintained all year. On Thursday, according to the CME FedWatch Tool , investors were factoring in a 75% probability for a 75 basis points hike in December. That fell to 45% by Friday. Whether any of this chatter about future hikes is enough to cap the rise in Treasury yields, stabilize the major stock averages and get a bit of rebound remains to be seen. However, whatever the near-term path of equities is, as we discussed Friday, we think a well-balanced and diversified portfolio will position investors for whatever comes next. Under the hood, it was a broad-based rally with all sectors higher for the week, led by energy, technology and materials. Meanwhile, the U.S. dollar index hovered around the 112 level. Gold is holding at $1,660 per ounce. WTI crude prices remain in the mid-$80s region and the yield on the 10-year Treasury advanced to 4.2%. Looking back On the earnings front, we got results from Johnson & Johnson (JNJ), Procter & Gamble (PG), and Danaher (DHR). On the macroeconomic front: On Tuesday, industrial production was reported to have risen 0.4% in September, exceeding expectations for a 0.1% monthly advance, while capacity utilization came in at 80.3%, above the 80% expected. On Wednesday, housing starts were reported to have fallen 8.1% monthly to a seasonally adjusted annual rate (SAAR) of 1.439 million in September, below the 1.47 million rate the Street was expecting. Building permits were up 1.4% in September, short of the 1.5% advance expected. On Thursday, initial jobless claims for the week ending Oct. 15 came in at 214,000, a decrease of 12,000 from the prior week and below expectations of 232,000. Also Thursday, existing home sales were reported to have fallen 1.5% monthly and 23.8% annually in September to a SAAR of 4.71 million as rising mortgage rates take their toll on affordability. What's ahead Earnings season ramps up next week for the Club. Within the portfolio, we will hear from Halliburton (HAL) on Tuesday before the opening bell; from Microsoft (MSFT) and Alphabet (GOOGL) on Tuesday after the closing bell; from Meta Platforms (META) and Ford (F) on Wednesday after the bell; from Linde (LIN) and Honeywell (HON) on Thursday before the bell; from Amazon (AMZN), Apple (AAPL) and Pioneer Natural Resources on Thursday after the closing bell; and from AbbVie (ABBV) on Friday before the opening bell. Here are some other earnings reports and economic numbers to watch in the week ahead: Monday, October 24 Before the bell: Royal Philips (PHG) ,Dorman Products (DORM), Bank of Hawaii (BOH), Schnitzer Steel (SCHN), Kirby Corp (KEX) After the bell: Logitech (LOGI), Brown & Brown (BRO), Range Resources (RRC), Packaging Corp (PKG), Crane (CR), Discover Fin (DFS), Zions Bancorp (ZION), Qualtrics (XM), Crown Holdings (CCK) Tuesday, October 25 Before the bell: United Parcel (UPS), Coca-Cola (KO), General Motors (GM), Cleveland Cliffs (CLF), General Electric (GE), 3M (MMM), Jet Blue (JBLU), Valero (VLO), Raytheon (RTX), Synchrony (SYF), Archer-Daniels (ADM), Kimberly-Clark (KMB), Centene (CNC), Novartis (NVS), Sherwin-Williams (SHW), Biogen (BIIB), SAP (SAP) After the bell: Visa (V), Enphase (ENPH), Chipotle (CMG), Spotify (SPOT), Texas Instruments (TXN), Mattel (MAT), Chemours (CC) Wednesday, October 26 Before the bell: Boeing (BA), Waste Management (WM), Bristol-Myers (BMY), Hilton (HLT), Kraft Heinz (KHC), Harley-Davidson (HOG), Otis (OTIS), General Dynamics (GD), Thermo Fisher (TMO), Seagate (STX), Boston Scientific (BSX), ADP (ADP) After the bell: Teledoc (TDOC), ServiceNow (NOW), Quantumscape (QS), Upwork (UPWK), KLA Corp (KLAC), O'Reilly Auto (ORLY), EQT Corp (EQT), Align (ALGN), VF Corp (VFC), Agnico-Eagle (AEM), Netgear (NTGR) 10:00 a.m. ET: New Home Sales Thursday, October 27 Before the bell: Shopify (SHOP), Caterpillar (CAT), McDonalds (MCD), Matercard (MA), Southwest (LUV), Merck (MRK), Altria (MO), Western Digital (WDC), Comcast (CMCSA), American Electric Power (AEP), Stanley Black & Decker (SWK), International Paper (IP), Textron (TXT) After the bell: Intel (INTC), Pinterest (PINS), US Steel (X), T-Mobile (TMUS), Gilead (GILD), First Solar (FSLR), Capital One (COF), Dexcom (DXCM), Zendesk (ZEN), L3Harris (LHX) 8:30 a.m. ET: Initial Jobless Claims 8:30 a.m. ET: Durable Goods Orders 8:30 a.m. ET: Gross Domestic Product Friday, October 28 Before the bell: Chevron (CVX), Exxon (XOM), Colgate-Palmolive (CL), Booz Allen (BAH), LuondellBasell (LYB), DaVita (DVA) 8:30 a.m. ET: Personal Spending (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.
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, October 7, 2022.
Stocks rallied this week as earnings season ramped up and is so far off to a better-than-expected start. | 2022-10-21T21:12:47Z | www.cnbc.com | Earnings are off to a decent start. Next week is the big test for tech | https://www.cnbc.com/2022/10/21/earnings-are-off-to-a-decent-start-next-week-is-the-big-test-for-tech.html | https://www.cnbc.com/2022/10/21/earnings-are-off-to-a-decent-start-next-week-is-the-big-test-for-tech.html |
Toy company Mattel agrees to pay $3.5 million fine for misstatements in 2017 earnings, SEC says
Toy conglomerate Mattel has agreed to pay a $3.5 million fine for misstatements in its 2017 quarterly earnings.
The SEC said Mattel "violated numerous professional standards" by understating its tax-related valuation for the third quarter of 2017 by $109 million.
The tax auditor responsible for the error failed to report it to Mattel's audit committee, the SEC found.
Mattel Inc. Barbie brand dolls are displayed for sale at a Walmart Inc. store in Burbank, California, U.S., on Tuesday, Nov. 26, 2019. A PWC survey shows that 36% of consumers surveyed plan to shop on Black Friday. Deals will ultimately dictate where spending and visits go.
Toy maker Mattel
has agreed to pay a $3.5 million fine to settle charges related to misstatements in two quarters of earnings in 2017, the Securities and Exchange Commission announced Friday.
The SEC said Mattel "violated numerous professional standards" by understating its tax-related valuation for the third quarter of 2017 by $109 million. The company then overstated its tax expense in the fourth quarter of that year by the same amount, according to the SEC's order.
The commission is separately pursuing enforcement action against a former auditor at PricewaterhouseCoopers, an international tax consulting firm, who oversaw the work.
"An auditor's adherence to professional standards and independence is critical to preserving investors' trust in a company's financial statements," Alka Patel, associate director of the SEC's Los Angeles Regional Office, said in a statement. "Auditors who advise their clients on who to hire will have an interest in the success of such hires and could therefore be less critical of their effectiveness, all of which undermines the auditor's independence."
The SEC said Mattel did not admit or deny the findings of its probe. Mattel did not immediately respond to a request to comment.
As a result, the company misreported its quarterly losses.
The fine is related to a SEC probe that ended in 2019. Mattel's $109 million tax expense error went uncorrected until its November 2019 restatement.
Mattel's chief financial officer announced he would step down that year.
Joshua Abrahams, who is identified in the report as the PwC auditor involved, knew about the error but failed to share it with Mattel's audit committee. Abrahams also provided restricted human resource advice to Mattel.
The SEC will hold a public hearing on Abrahams' actions. | 2022-10-21T22:09:25Z | www.cnbc.com | Toy company Mattel agrees to pay $3.5 million SEC fine | https://www.cnbc.com/2022/10/21/toy-company-mattel-agrees-to-pay-3point5-million-sec-fine-.html | https://www.cnbc.com/2022/10/21/toy-company-mattel-agrees-to-pay-3point5-million-sec-fine-.html |
: "I think that's an excellent idea [to sell shares of Walmart and start a position in Procter & Gamble
]."
: "Right now I don't want to back away from it. ... We may have to do new work on Iron Mountain to see if it's as safe as we think it is."
: "I like Johnson & Johnson
: "That's a good one."
: "[Buy.]" | 2022-10-22T00:15:32Z | www.cnbc.com | Cramer's lightning round: I like Procter & Gamble over Walmart | https://www.cnbc.com/2022/10/21/cramers-lightning-round-i-like-procter-gamble-over-walmart.html | https://www.cnbc.com/2022/10/21/cramers-lightning-round-i-like-procter-gamble-over-walmart.html |
Business: Salesforce
is a global leader in customer relationship management (CRM) technology that brings companies and their clients together. It was founded in 1999 and is a pioneer in the cloud software space. It started as a tool to help enable sales teams to increase their productivity while also improving the end customer experience. Over the last 20 years, they have expanded into other areas to help companies connect with and better serve customers, including Sales Cloud, Marketing & Commerce Cloud, Platform & Other, Integration Cloud, Analytics Cloud and Service Cloud. | 2022-10-22T13:23:24Z | www.cnbc.com | Starboard takes a stake in Salesforce. Here’s what could be next for the tech giant | https://www.cnbc.com/2022/10/22/starboard-takes-a-stake-in-salesforce-heres-what-could-be-next-for-the-tech-giant.html | https://www.cnbc.com/2022/10/22/starboard-takes-a-stake-in-salesforce-heres-what-could-be-next-for-the-tech-giant.html |
Araceli Ledesma, the founder and CEO of Araceli Beauty
Araceli Beauty
Araceli Ledesma, founder and CEO of Araceli Beauty, is a master at building a successful business from the ground up while staying true to her culture and values.
As a freelance makeup artist, Ledesma launched Araceli Beauty, a "Mexicana-inspired" beauty and cosmetics brand, in 2018 as a side hustle.
"I learned a lot from my clients [about makeup]," she shares with CNBC Make It. "I learned how they were confused, why they were confused, and what could make their lives easier. And that's what gave me the idea to create something a little bit more universal and easy for everyone to use."
Born in Jalisco, Mexico, Ledesma, who prefers not to share her age, and her family relocated to California for a better life when she was just 5 years old. Even then, she had an immense love for makeup.
"When I was very young, I got a little sample of lipstick. And I would take the bus home," Ledesma shares. "I remember I put it on and as soon as I got home, I just threw it out the window because I was scared that I would get in trouble with my mom for wearing lipstick, but I've always loved makeup."
Now, four years after starting her company, has made over $2 million in revenue and amassed a following of over 160,000 people across Araceli Beauty's social platforms.
A girl and a dream
During Ledesma's high school years, she began to get serious about her love for beauty and wanted to take her school's extracurricular cosmetology class. Unfortunately, it came with a hefty price tag.
"I was in 11th grade and I begged my mom to let me do this cosmetology program. It was a little bit pricey for us because we were low-income. But I begged my mom to let me borrow $600 so I could pay for it. And for a high schooler, that was a fortune. But my mom still lent me the cash."
Ledesma then spent the next couple of years working at Taco Bell to pay off her debt, while still taking cosmetology classes. By the age of 18, she obtained her license and knew she wanted to pursue beauty long-term. She got a job working in a salon as a hairstylist, which later "evolved into doing makeup within the salon as well."
Staying true to her roots
Many experts agree that the beauty and cosmetics industry has become oversaturated in recent years, making it difficult for brands to set themselves apart from others. According to Grand View Research, a U.S.-based research and consulting company, the global cosmetics market size was valued at $254.08 billion in 2021 and is expected to grow 5.3% from 2022 to 2028. But Ledesma says this isn't "particularly a problem, but a challenge" that allows her to think outside the box.
Drawing inspiration from her hometown of Jalisco, Ledesma pays homage to her Mexican roots by incorporating regionally sourced ingredients in her formulas.
"Jalisco is the largest tequila producer in the world, and I thought it was necessary to tap into that when creating Araceli Beauty," Ledesma says on her website. "We pour a little piece of Mexico into all of our products, from our packaging design to our formulas. For example, Araceli Beauty Eyeshadow Palettes, Tequila Highlighters, and Las Flores Blushes include tequila leaf extract from the agave plant."
Ledesma's products also use ingredients like avocado, prickly pear and cactus oil, all sourced from Mexico. Her mascara, Monarca Mascara, was also inspired by the monarch butterfly migration to Central Mexico. She says these opportunities for "storytelling" have helped her be "unique and innovative in a very saturated market."
Araceli Beauty has garnered immense success since its launch, but it wasn't an easy task. During the start of the Covid-19 pandemic in 2020, Ledesma's makeup products were still a side hustle for her.
"I was still working at a salon… My brand wasn't my full-time job. I always had my hairdressing to fall back on."
However, due to Covid-related regulations, the hair salon was forced to close. Ledesma says, however, that she now looks at this as a "blessing in disguise."
"I had no other option. It was my time to cut the cord and go full-time. I was really scared because of the pandemic and everybody losing their jobs. But during all of the craziness going on, we did well."
Ledesma used this opportunity to push her products online even more, bringing in an influx of new customers. Her small team of about five family members and friends helped her fulfill orders and grow the brand into what it is today.
Looking back, Ledesma says there are several things she would have done differently when starting her business.
"I already had my cosmetology license so I didn't pursue a college degree. And for a long time, it was something that weighed heavy on me. As an immigrant, I should have got it done and made my parents proud."
"I wish I would have taken more business classes," Ledesma says. " This experience has been more like building the plane as you're flying it, which is the beauty of entrepreneurship. You learn as you go, make mistakes, fall, and get back up. But I wish I would have been a little more prepared for the business side of things." | 2022-10-22T14:28:23Z | www.cnbc.com | Araceli Beauty founder turned side gig into brand that brings in millions | https://www.cnbc.com/2022/10/22/araceli-beauty-founder-araceli-ledesma-turned-side-hustle-into-a-million-dollar-brand.html | https://www.cnbc.com/2022/10/22/araceli-beauty-founder-araceli-ledesma-turned-side-hustle-into-a-million-dollar-brand.html |
Want to invest outside of the stock market? Yieldstreet lets you invest in art, real estate and more
Select reviews the ins and outs of Yieldstreet, including how it works, fees and offerings.
Annastills | Istock | Getty Images
Investing your money is an important part of maintaining your financial health. And while putting money into the stock market is one common way to grow your money and build your wealth, it certainly isn't the only way to invest.
Once you're feeling secure in your finances, you might consider diving into alternative investments. Alternative investments are asset classes that do not include stocks, bonds and cash. For instance, collectible items like fine wine, coins, stamps and vintage cars can be an alternative investment. Private debt and real estate are other common alternative assets that can be invested in.
The options can be overwhelming and you might not even know where to start. Yieldstreet is a platform that helps you get started by giving you access to many different kinds of alternative asset deals and all the necessary details to guide you in your investments.
Below, Select reviewed how the site works and what you need to know in order to be eligible to get started.
Yieldstreet review
How Yieldstreet works
What kinds of investments are offered?
Who's this best for?
Yieldstreet gives investors the chance to participate in crowdfunding for alternative investments on the platform. Crowdfunding is the process of raising smaller amounts of money from a large number of people. So instead of having one person invest $50,000, crowdfunding allows 50 people to invest a minimum of $1,000 each to reach the same goal.
Yieldstreet also provides individual investors with opportunities to invest in private structured credit deals, which is a deal where an investor will get a minimum assured return, and the risk from a decline in earnings is protected. These deals are usually only available to institutional investors or hedge funds, though. The platform secures investments across deals which include commercial real estate, art and marine projects.
Investment minimums are usually around $10,000, which may not be best for those who don't have a lot of extra money to invest beyond their IRA or brokerage account. As of October 2022, over $4 billion has been invested in their platform with an 9.61% net annualized return, according to Yieldstreet.
It's also important to note that most deals on Yieldstreet are only available to accredited investors, which the Securities and Exchange Commission (SEC) defines as people with a net worth of more than $1 million — excluding the value of your primary residence — or an annual income over the past two years of at least $200,000 for individuals and over $300,000 for couples. The other option would be to hold certain certificates or credentials, such as Series 7, Series 65, and Series 82 licenses. So unless you fit these criteria, you likely won't be able to participate in most opportunities on the platform.
However, in August 2020 Yieldstreet established the Prism Fund, which is available to non-accredited investors. The minimum investment amount for assets within the Prism Fund is $2,500, which makes it a little more accessible.
You can sign up to start investing on Yieldstreet's website through Apple ID, email or Google. After choosing your sign-up method, the site will prompt you with some questions to determine if you are an accredited investor. If you meet the criteria, you can start tailoring your Yieldstreet dashboard to your investment preferences and needs.
You can find details about each of the investments Yieldstreet offers on its website. Currently, it offers investments in Real Estate Investment Trusts (REITs), art, supply chain finance investing and more. You can find details on the offering size, maximum and minimum acceptable investments, the expected annual investment return and duration. The platform will also explain the risks of the investment and any favorable highlights.
Notes are another form of alternative investment offered by Yieldstreet. A note is an obligation for a borrower to repay a sum of money with interest within a certain time frame, like six months or one year — similar to the way a loan works. In this case, individuals are investing in the likelihood that they will earn a return for lending money to a borrower.
Those who invest money into the short-term or structured notes offered by the site earn a return on their investment and interest payments over the life of the loans — but it is important to mention that there is always the risk of default. Because of this, every investment offering on Yieldstreet is backed by underlying assets, like a legal settlement or real estate, which means the company will have the means to potentially recoup any defaulted loans for financing investments.
For those interested in investing in art, Masterworks is another platform that allows you to invest in pieces from famous artists. You can purchase fractional shares of art for as little as $20. Read more in our Masterworks review.
Yieldstreet has an annual management fee ranging on average from 0% – 2.5%. There might also be investments with flat annual fees — such fees are disclosed on individual offering pages. Annual fund expenses may also be charged to investors depending on the legal structure of the offering, and specific information about these expenses can also be found on individual offering pages.
Yieldstreet is ideal for accredited investors who want to diversify their portfolios through alternative investments. Non-accredited investors are also accommodated on the platform through the Prism Fund, however, it's important to make sure that you have already exhausted other traditional investment accounts first.
Because you might need to lock up your cash for potentially long periods of time, you'll want to be relatively stable in your current financial situation. It's important that before you get into alternative investments, you should have a fully funded emergency fund, be contributing at least enough to receive the employer match for your 401(k), contributing to a Roth IRA and have a cushion of extra savings on the side.
It may be worth considering using a robo-advisor, like Wealthfront or Betterment, to invest your money before you start purchasing alternative investments. The platforms will create a diversified portfolio of ETFs for you based on your risk tolerance and investment time horizon.
Another crucial thing to keep in mind is to ensure less than 10% of your portfolio is composed of alternative investments like the ones offered by Yieldstreet. This way, you keep a diversified balance of all your assets.
The pros of Yieldstreet include wide-ranging access to alternative investments that are backed by assets, providing a form of protection in case of default. Cons include the fact that most of the offerings are only open to accredited investors and there are only a limited number of investments available. Overall, Yieldstreet makes the most sense for those who have already exhausted other traditional investment accounts, like brokerage accounts and retirement accounts, and have larger amounts of money to put toward alternative assets.
Stash Review: Is the all-in-one financial services app worth the money?
MoneyLion’s Instacash review: Get cash advances up to $250 with no interest or credit check
The top 4 investing apps to help newbies and experts build their wealth from anywhere | 2022-10-22T14:28:47Z | www.cnbc.com | Yieldstreet Review 2022: Invest In Alternative Assets | https://www.cnbc.com/select/yieldstreet-review-2022-invest-in-alternative-assets/ | https://www.cnbc.com/select/yieldstreet-review-2022-invest-in-alternative-assets/ |
Published Sun, Oct 23 202212:53 AM EDT Updated 3 Min Ago
China's President Xi Jinping (C) and other members of the Communist Party of China's Politburo Standing Committee meet the media in the Great Hall of the People in Beijing on Oct. 23, 2022.
Xi holds three key positions: general secretary of the Chinese Communist Party, chairman of the Central Military Commission and president of China. | 2022-10-23T05:20:24Z | www.cnbc.com | China names Xi Jinping loyalists for core leadership group | https://www.cnbc.com/2022/10/23/china-names-xi-jinping-loyalists-for-core-leadership-group.html | https://www.cnbc.com/2022/10/23/china-names-xi-jinping-loyalists-for-core-leadership-group.html |
A host of projects and partners – from Apple
, SpaceX, T-Mobile
and AT&T
, among others – have come to the fore in 2022, at various stages of development to connect directly to smartphones. It's long been a dream of satellite communications visionaries, but bulky, specialized and typically expensive satellite phones fell short of mass appeal.
The partnership is similar to those made by AST SpaceMobile
. The company last month put its second test satellite in orbit and has deals with mobile telecoms, including AT&T
, Vodafone and Rakuten. The satellite company went public via a SPAC last year and has raised nearly $600 million to date.
– the leading provider of satellite smartphone communications so far, albeit in a limited capacity to start – recently announced an emergency feature of iPhone 14 models that leverages the technology. In partnership with Globalstar
, the feature allows users to send compressed text messages from iPhone 14s via satellites.
, a long-time provider of satellite communications to specialized phones, has yet to announce a partner for a direct-to-smartphone service. But CEO Matt Desch last month told CNBC at the 2022 World Satellite Business Week conference that his company has been "working on that opportunity."
SpaceX is a leader in rocket launches, but Starlink is its golden ticket | 2022-10-23T12:13:52Z | www.cnbc.com | Space race to connect satellites to phones with Apple, SpaceX, AT&T | https://www.cnbc.com/2022/10/23/space-race-to-connect-satellites-to-phones-with-apple-spacex-att.html | https://www.cnbc.com/2022/10/23/space-race-to-connect-satellites-to-phones-with-apple-spacex-att.html |
"Black Adam" stormed into theaters this weekend, snaring $67 million domestically. It is the first film since Disney
and Marvel Studio's "Thor: Love and Thunder" in July to tally more than $50 million during its debut.
The Warner Bros.'
film also marks star Dwayne Johnson's largest domestic opening as a leading man. | 2022-10-23T15:16:32Z | www.cnbc.com | 'Black Adam' tallies $67 million in domestic debut | https://www.cnbc.com/2022/10/23/black-adam-tallies-67-million-in-domestic-debut.html | https://www.cnbc.com/2022/10/23/black-adam-tallies-67-million-in-domestic-debut.html |
British Prime Minister Boris Johnson attends a news briefing as Russia's attack on Ukraine continues, in Kyiv, Ukraine August 24, 2022.
LONDON — Former U.K. Prime Minister Boris Johnson will not stand in the leadership contest to replace outgoing leader Liz Truss.
But in a statement late on Sunday, Johnson said it was "simply not the right time." He added he had "cleared the very high hurdle of 102 nominations" to take part in the latter stages of the contest. Around 60 lawmakers had publicly backed the ex-PM but there was some debate over how exactly how many nominations he had received. | 2022-10-23T20:38:35Z | www.cnbc.com | Former UK PM Boris Johnson pulls out of leadership race | https://www.cnbc.com/2022/10/23/former-uk-pm-boris-johnson-reportedly-pulls-out-of-leadership-race.html | https://www.cnbc.com/2022/10/23/former-uk-pm-boris-johnson-reportedly-pulls-out-of-leadership-race.html |
Whether oil prices rise or fall, energy stocks are still worth investing in, according to Foord Asset Management's Brian Arcese. Arcese, a portfolio manager at the firm, said he would be quite comfortable increasing the weight of energy stocks in his portfolio. "I think there are a lot of tailwinds for oil prices going forward," he told CNBC Pro Talks on Thursday. "Then what happens if I'm wrong? That's why some of these oil majors are, in our minds, a great way to play the space." "Oil prices are likely to, at a minimum, stay where they are but they could go higher. And if you're wrong, all of these companies are also very fast generative at oil prices less than half of where they are today. So you would still be earning a dividend with oil at $40," Arcese added. Crude prices have been volatile this year, with Brent rallying following the Russia-Ukraine war to around $130 per barrel before generally sliding on recession worries. Brent was last trading around $91 per barrel and WTI was around $83 per barrel. Stock picks Arcese says he likes Occidental , a "great company [which] is highly geared to oil prices." "So if oil prices stay high, they generate a significant amount of cash," he said. "Management is taking the view that they won't use the cash to invest in lower returning renewables energy projects, for example, but instead will return all the excess cash to investors — either in buybacks or in special dividends." Another stock that Foord has invested in is French firm TotalEnergies , which also leverages oil prices but to a far lower extent than Occidental, said Arcese. Energy is the only sector in the S & P 500 to be in the green year-to-date as of Friday, with most others deep in the red. "It's a very interesting space to invest in when there's been significant underinvestment and even today with prices where they are most oil majors are not investing in new exploration," Arcese added. The amount spent on oil and gas has declined, partly because of the industry facing growing pressure to move away from fossil fuels. Total spending in 2021 was a little more than $350 billion – "well below" 2019 levels, according to the IEA's World Energy Outlook 2021 .
Portfolio manager Brian Arcese discusses whether inflation is here to stay | 2022-10-24T01:21:32Z | www.cnbc.com | Portfolio manager on investing in energy stocks, oil prices | https://www.cnbc.com/2022/10/24/portfolio-manager-on-investing-in-energy-stocks-oil-prices.html | https://www.cnbc.com/2022/10/24/portfolio-manager-on-investing-in-energy-stocks-oil-prices.html |
A major reason for Truss's resignation was her expansionary fiscal policy, which caused violent market volatility and triggered a "disaster." To calm the market storm, Truss abandoned most of her economic ideas. Due to this drastic repetition, the party's approval rating dropped rapidly.
We can use the UK 30-year bond to see how the market has reacted to the election of Truss as Prime Minister since September 21. We can see that each policy adjustment has caused the bond market, to experience turbulent ups and downs.
The reaction of the market is described by Gillian Tett, a contributing editor of the Financial Times, as "the return of the bond vigilantes ". This phenomenon means that investors, dissatisfied with the programs pursued by policymakers, are selling Treasury bonds on a large scale, raising the cost of borrowing and thus fighting against the policies of those in power.
Editor-at-large of the Financial Times
"The financial markets have been very crucial in this story. In fact, you can even say that the bond vigilantes are back. What do you have as political turmoil, you have financial risk, you have policy uncertainty."
Rising bond yields have led to a liquidity crunch for many UK pensions that have used financial leverage extensively.
Therefore, we saw a positive market reaction after Truss announced his resignation, with the currency and bond markets rising.
Investors view Truss' resignation as a step forward for the British government toward restoring credibility in the financial markets. Nevertheless, the next prime minister will face an extremely challenging task: the cost of living crisis, the cost of borrowing crisis, as well as the market credibility crisis. The market is most concerned about who will be the next British Prime Minister.
According to Smarkets, former Chancellor of the Exchequer Rishi Sunak has the highest probability of being elected, more than 40%. Next, the leader of the House of Commons, Penny Mordaunt, and secretary of State for Defence, Ben Wallace are strong candidates. Even Boris Johnson, who lost his position as a prime minister not long ago, could make a comeback.
Some analysts believe it will be a game between populists and technocrats, with Johnson and Truss both being populists. The new Chancellor of the Exchequer Hunt and Sunac, on the other hand, belong to the more sober and calm technocratic school, which may lack charisma but has market credibility, and regaining the trust of the financial markets will be crucial for the next Prime Minister. | 2022-10-24T04:58:57Z | www.cnbc.com | CCTV Script 21/10/22 | https://www.cnbc.com/2022/10/24/cctv-script-21/10/22.html | https://www.cnbc.com/2022/10/24/cctv-script-21/10/22.html |
How to survive this coming winter is the primary concern of millions of Eastern Europeans right now. Since the Russia-Ukraine conflict earlier this year, wholesale electricity prices in some Eastern European countries have skyrocketed.
Although electricity prices in September have fallen slightly from August, they are still at high levels. In Hungary, wholesale electricity prices are at €390.42 per MWh, or about RMB 2,789, and in Slovakia and Bulgaria: €386.52 per MWh; and €375.13 per MWh, respectively.
Some analyses suggest that energy poverty rates will rise significantly in many Eastern European countries, such as Hungary, Slovakia and Bulgaria. The concept of energy poverty refers to people who don't have enough energy to make a difference in their lives, like not being able to heat their homes in winter or cool their homes in summer. Economists fear that if energy and food prices continue to rise, many people will fall into poverty, and those already below the poverty line will fall into extreme poverty.
As a result of high energy prices, many Eastern European governments are focusing on heating issues instead of environmental issues like climate change.
In Hungary, for instance, logging rules were relaxed and more lignite mining was ordered. Lignite is the dirtiest fossil fuel because of its high sulfur content. And now lignite is not only a fuel for Hungarian power plants, but is also used by many households for heating.
In Sofia, the capital of Bulgaria, residents are hoarding firewood and the price of firewood has risen from 100 leva per cubic meter to 180 leva now.
In Romania, where more than half of the population uses firewood for heating, the government not only issues vouchers to subsidize the purchase of firewood, but also limits the price of firewood to help ordinary households reduce their energy costs. The nonprofit WWF has warned that this will increase illegal logging.
In Poland, where some 2 million households are affected by a coal shortage, Jarosław Kaczyński, the Deputy Prime Minister of Poland told people to burn "everything except tyres" to keep warm.
All of these actions will lead to more air pollution, which will affect the health of the population.
Solid fuels like firewood emit many harmful pollutants, like fine particles that affect lung development and worsen asthma and heart disease.
One mayor in Slovakia said his town "went back 50 years" in terms of heating methods and pollution, and suddenly people didn't care about smog and haze. There's now a hard choice to be made in Eastern European countries between home heating and air pollution. | 2022-10-24T04:59:03Z | www.cnbc.com | CCTV Script 24/10/22 | https://www.cnbc.com/2022/10/24/cctv-script-24/10/22.html | https://www.cnbc.com/2022/10/24/cctv-script-24/10/22.html |
The 31st of October is Halloween, a traditional Western holiday. Children usually wear pumpkin head coverings to visit their neighbors on this day. Sometimes they'll say, "Trick or treat!" But for many American families, Halloween may be more expensive this year.
Let's start with the kids' favorite–candy. According to the latest inflation data from the U.S. Department of Labor, the price of candy is 13.1 percent higher compared to the same time last year; this is the largest annual increase ever. The last time candy prices rose by 13% was between 1997 and 2006, which took nine years.
For example, a Walmart gift pack with 160 different brands of candy costs $16.98, $2.24 more than last year, a 15% increase. On Amazon.com, a pack of 120 Hershey's chocolate bars sells for 22% more this year than last year.
The main reason for the rise in candy prices is that its raw material, sugar, is becoming more expensive. Extreme weather has hurt beet sugar production. Combined with factors like high energy prices, and the supply chain, sugar prices have jumped 17 percent since September.
And another classic Halloween element, the pumpkin, has also become more expensive.
In the New York area, the average price of a pumpkin has risen from $4.04 in 2019 to $4.83 in 2021. This year's prices continue to follow inflation, with a pumpkin costing an average of $5; that's a 25% increase in pumpkin prices in four years.
For those who want to dress up for the holidays, the price of clothing has risen 5.5 percent since last year. For those who want to make their own costumes, materials like sewing machines, fabric, and other supplies have gone up 11 percent since last year.
Furthermore, because flour prices are up 24%, baked goods for the holidays, like cakes, cup-cakes, and cookies, are up 16% from last September.
Prices have gone up, but people still love the holidays. According to the annual report of the American Retail Federation, 69% of consumers said they plan to celebrate Halloween this year. This level of participation has returned to the levels seen in 2019 - before the new crown epidemic. The average person is expected to spend $100.45, or about $728, on Halloween; and total consumer spending on Halloween this year is expected to reach a record $10.6 billion. | 2022-10-24T04:59:09Z | www.cnbc.com | CCTV Weekly Script 22/10/22 | https://www.cnbc.com/2022/10/24/cctv-weekly-script-22/10/22.html | https://www.cnbc.com/2022/10/24/cctv-weekly-script-22/10/22.html |
Business sentiment in the euro area dropped once again ahead of an ECB meeting where President Christine Lagarde is expected to raise rates again.
lost ground against the U.S. dollar and the British pound during morning deals in London, trading at $0.982 and £0.868 respectively, and following the latest PMI data. | 2022-10-24T10:56:01Z | www.cnbc.com | Euro zone PMIs: Business activity slows on surging energy costs | https://www.cnbc.com/2022/10/24/euro-zone-pmis-business-activity-slows-on-surging-energy-costs.html | https://www.cnbc.com/2022/10/24/euro-zone-pmis-business-activity-slows-on-surging-energy-costs.html |
China's President Xi Jinping speaking at the opening session of the 20th Chinese Communist Party's Congress at the Great Hall of the People in Beijing on Oct. 16, 2022.
Tech giants Alibaba
closed down more than 11% in Asia; search company Baidu
was 12% lower while food delivery firm Meituan
tanked more than 14%. | 2022-10-24T12:31:33Z | www.cnbc.com | Alibaba, Tencent shares plummet as Xi Jinping tightens grip on power | https://www.cnbc.com/2022/10/24/alibaba-tencent-shares-plummet-as-xi-jinping-tightens-grip-on-power.html | https://www.cnbc.com/2022/10/24/alibaba-tencent-shares-plummet-as-xi-jinping-tightens-grip-on-power.html |
Daniel Pinto, co-president and chief operating officer of JPMorgan Chase & Co., speaks during the Institute of International Finance (IIF) annual membership meeting in Washington, D.C., Oct. 18, 2019.
President Daniel Pinto has vivid memories of what life is like when a country loses control of inflation.
Like a string of other executives have said recently, including Dimon and Goldman Sachs
CEO David Solomon, the U.S. faces a recession because of the Fed's predicament, Pinto said. The only question is how severe the slowdown will be. That, of course, is being reflected in the markets that Pinto watches daily.
But profit estimates haven't fallen far enough to reflect what's coming, according to Pinto, and that could mean the market takes another leg down. The S&P 500
has dropped 21% this year as of Friday.
The post-financial crisis era also gave rise to new forms of digital money: cryptocurrencies including bitcoin. While JPMorgan and rivals including Morgan Stanley
and others have allowed wealth management clients to get exposure to crypto, there appears to be little progress recently in terms of its institutional adoption, according to Pinto. | 2022-10-24T12:31:45Z | www.cnbc.com | JPMorgan president Daniel Pinto says a recession is likely and markets may fall further as the Fed raises rates | https://www.cnbc.com/2022/10/24/jpmorgan-president-daniel-pinto-says-a-recession-is-likely-and-markets-may-fall-further-as-the-fed-raises-rates-.html | https://www.cnbc.com/2022/10/24/jpmorgan-president-daniel-pinto-says-a-recession-is-likely-and-markets-may-fall-further-as-the-fed-raises-rates-.html |
I've been testing Apple's
new 12.9-inch iPad Pro for the past several days. It hits store shelves on Oct. 26 and comes in 11-inch and 12.9-inch sizes,
Unlike the entry-level iPad, the iPad Pro's price didn't increase from last year's model, the 11-inch iPad Pro starts at $799 and the 12.9-inch iPad Pro starts at $1,099.
If you're a 2021 iPad Pro user, it might be hard to justify upgrading to this year's model, as there aren't all the many noticeable improvements. And if you're a standard iPad user – meaning you stream, read, play basic games and surf the web – shelling out $800 or more for the Pro is probably overkill.
The M2 processor is fast, which you'll notice if you're editing videos, or running multiple complex applications at the same time. I tried editing a video on the Pro. It quickly imported large video files and didn't hiccup when I added filters to specific frames and rendered the video Exporting my video file was also super fast. This was just a video capturing highlights of a trip to Europe, it was by no means a complex video project.
Here is the 12.9-inch Pro compared to the 10.9-inch entry-level iPad.
I noticed the screen was brighter on the 12.9-inch Pro than any iPad I've used before. While watching HBO's "House of the Dragon" on my TV at home, I often have to go into a dark room to see everything because the show is shot in dark locations and it's often hard to see if there's too much light reflecting on the screen. When I watched "House of the Dragon" on the new iPad Pro, however, I noticed it was much easier to see the details on the screen, even when I was in a bright room.
The large screen also makes it easier to multitask on the iPad Pro. I liked reading the news, while keeping YouTube TV open at the same time.
iPad Pro split screen view.
The speakers are clear and loud and better than on any other iPad I've used. I tried streaming music in the bathroom from the Pro while blow-drying my hair and I could easily make out a song's lyrics.
Pick the 2022 iPad Pro if you want the extra power and better screen over other iPads. It's very fast, the screen display and speakers are excellent for kicking back and watching movies, and it's a great tablet for my creatives who need added power for video or photo editing. It gets expensive at the high end. If you opt for the maximum storage space of 2TB and choose the 12.9-inch iPad with Wi-Fi and Cellular, you're looking at a price tag of $2,400, and that doesn't even include the $129 Apple Pencil (2nd generation) or the $350 Magic Keyboard. | 2022-10-24T14:07:30Z | www.cnbc.com | Apple 12.9-inch iPad Pro 2022 review: The best iPad you can buy | https://www.cnbc.com/2022/10/24/apple-12point9-inch-ipad-pro-2022-review-the-best-ipad-you-can-buy.html | https://www.cnbc.com/2022/10/24/apple-12point9-inch-ipad-pro-2022-review-the-best-ipad-you-can-buy.html |
's new iPad hits store shelves on Wednesday, Oct. 26. I've been testing the new iPad for the past several days and if you're looking for an entry-level iPad, I think it's worth spending the extra $120 on this year's version.
The new colors are also exciting and I have a feeling they'll make this entry-level iPad more popular for the holiday season. This year's lineup comes in blue, pink, silver and yellow. | 2022-10-24T14:07:36Z | www.cnbc.com | Apple iPad 2022 review: The upgrades justify the $120 price increase | https://www.cnbc.com/2022/10/24/apple-ipad-2022-review-the-upgrades-justify-the-120-price-increase.html | https://www.cnbc.com/2022/10/24/apple-ipad-2022-review-the-upgrades-justify-the-120-price-increase.html |
‘Star Wars’ movie in development from 'Watchmen' showrunner and 'Ms. Marvel' director, reports say
(L-R) Regina King, Damon Lindelof attend Premiere Of HBO's "Watchmen" at The Cinerama Dome on October 14, 2019 in Los Angeles, California.
In September, Disney
pulled Patty Jenkins' "Rogue Squadron" off its release schedule. The film was announced in 2020 and had been slated for a December 2023 release. | 2022-10-24T15:39:06Z | www.cnbc.com | New ‘Star Wars’ movie coming from 'Watchmen' showrunner, reports say | https://www.cnbc.com/2022/10/24/new-star-wars-movie-coming-from-watchmen-showrunner-reports-say.html | https://www.cnbc.com/2022/10/24/new-star-wars-movie-coming-from-watchmen-showrunner-reports-say.html |
JPMorgan's Advancing Black Wealth Tour is part of a $30 billion dollar, 5-year commitment the bank made in 2020.
A new endeavor from JPMorgan Chase
is trying to help close the racial wealth gap.
The bank's Advancing Black Wealth Tour, launched this spring, aims to give attendees the tools they need to manage their finances and build sustainable wealth — even with the possibility of a recession on the horizon.
The most recent tour stop was in Philadelphia earlier this month. Previous stop also included Los Angeles and New Orleans. More events are planned for 2023.
"When we look at the Black community historically, there has been a very significant gap in terms of awareness of how to grow wealth," said Justin Grant, executive director of JPMorgan's Advancing Black Pathways education and training program. The tour is a collaboration between Advancing Black Pathways and local Chase leaders.
The racial wealth gap describes the disparity in wealth between Black and white households in the United States. It's significant: During the first quarter of 2022, the average Black family had $0.24 for every dollar of wealth held by white families, according to the Federal Reserve Bank of St. Louis.
Collectively, the racial wealth gap is estimated to be at least $14 trillion, according to William A. Darity, Jr., director of the Samuel DuBois Cook Center on Social Equity at Duke University. The gap has grown from $11 trillion in 2020, due to the disruption of the Covid-19 pandemic, he said.
Business efforts to close the racial wealth gap
JPMorgan's Advancing Black Wealth Tour is part of a $30 billion dollar, 5-year commitment the bank made in 2020 to provide economic opportunities to Black and Latino communities. Other elements of its plans include expanding mortgage and banking access for those underserved communities.
The bank is one of several large companies that have made similar commitments in recent years focused on closing the racial wealth gap. To name a few:
In October, UPS
partnered with the Russell Innovation Center for Entrepreneurs (RICE) to provide logistics support for Black small businesses in the nonprofit's 4,000-person network. In 2020, UPS pledged more than $4 million to support Black non-profits and organizations.
sponsors a National Black Business Month Block Party Summit that offers panels and discussions about creating and scaling Black businesses. In 2020, the software giant committed to $410 million in efforts to address racial inequality and in September announced it had reached its goal of doubling Black representation in U.S leadership positions set in 2020.
launched its Black Partner Growth Initiative Accelerator in January to support Black tech companies and entrepreneurs, and has committed to spending $500 million with Black suppliers by 2025.
has committed $100 million to address "systemic disparities" through its Walmart.org Center for Racial Equity. In 2021, it also announced a partnership with C2FO to provide early payments to Black and diverse Walmart suppliers to increase their working capital and help them scale up their businesses.
is supporting the US Black Chambers and its ByBlack program, a nonprofit that offers a directory of 24,000 certified Black owned businesses with the aim of increasing supplier diversity.
Black home ownership down 3% since 2000 as racial wealth gap widens
Darity, who is also the founding director of the Research Network on Racial and Ethnic Inequality at Duke, said such business efforts help the Black community, but fully closing the racial wealth gap requires a multi-faceted approach involving direct federal action.
In another, Milan Harris, founder and CEO of apparel brand Milano Di Rogue, shared her entrepreneurship journey. Her company started in 2012 with a single shirt and has grown into a streetwear brand with a retail location, online store and millions in annual sales, according to the company website.
"If I go to sleep with a goal, I wake up with a purpose," Harris told the crowd,. "I want you guys to see a young black girl from the hood and know if I can do it, you can do it too."
Here are six financial decisions that can help bridge the racial wealth gap
Financial influencer Ian Dunlap, also known as "The Master Investor," focused on the power of investing and building wealth for future generations. Dunlap encouraged the audience diversify their finances to protect against a possible economic downturn. | 2022-10-24T15:56:24Z | www.cnbc.com | JPMorgan Chase uses Advancing Black Wealth Tour to boost financial literacy | https://www.cnbc.com/2022/10/24/jpmorgan-chase-uses-advancing-black-wealth-tour-to-boost-financial-literacy.html | https://www.cnbc.com/2022/10/24/jpmorgan-chase-uses-advancing-black-wealth-tour-to-boost-financial-literacy.html |
said it was too early to predict specific impacts on demand, but they did expect to benefit from the legislation's benefits for consumers who migrate away from gas-powered cars. The company beat earnings per share expectations for the third quarter but revenue came in lower than analysts anticipated.
also said inflation has come down compared to the past year and a half, specifically pointing to the company's decreasing costs related to logistics and raw material. That view is in line with that of some economics experts, who said "soft" inflation gauges are falling faster than the main indicators the Fed favors like the consumer price index which can lag.
Others weren't as bullish. Whirlpool | 2022-10-24T17:10:22Z | www.cnbc.com | Inflation is dominating the conversation on earnings calls. Here's what execs are saying | https://www.cnbc.com/2022/10/24/inflation-is-dominating-the-conversation-on-earnings-calls-heres-what-execs-are-saying.html | https://www.cnbc.com/2022/10/24/inflation-is-dominating-the-conversation-on-earnings-calls-heres-what-execs-are-saying.html |
Even before the coronavirus pandemic hit in 2020, the agriculture industry was dealing with a number of headwinds, from hurricanes and poor planning disrupting crop growth cycles to the impact of retaliatory tariffs slashing exports. When Covid hit, it highlighted existing issues and brought new ones, including supply and demand shocks to the food system and a labor shortage. Then, the invasion of Ukraine dealt another blow, roiling global grain markets. These issues have highlighted an immense need for investment in agriculture and specifically technology to improve the efficiency of the industry. "There's a lot of attraction to this space and increasingly so since the beginning of the pandemic, you had a series of events that put a focus on food security," said Kristen Owen, executive director and senior analyst covering sustainable growth and resource optimization at Oppenheimer. For retail investors that want to broaden their portfolio, include some recession-safe investments and gain on an emerging trend, there are ways to play the agtech space, according to analysts. The best may be to focus on large, established companies that have invested in innovation themselves and have acquired smaller firms that are moving the industry forward. 'A massive opportunity' "It's a massive opportunity but the access to capital has gotten a lot harder, particularly this year," Owen said. Deals and venture capital investments in the space have ticked up since 2020. In that year, venture capital put $3.4 billion into 422 deals, double the $1.7 billion invested a year earlier, according to data from Crunchbase. In 2021, even more money went into funding agriculture tech startups, with 440 deals and $4.9 billion. This year, investment has slowed slightly. Through Oct. 17, there have been 321 deals and nearly $3.5 billion invested in agtech, according to Crunchbase. That's because the stock market has whipsawed all year but remained in a bear market – not a good time to invest in taking a company public. Last year was one of the busiest IPO markets in two decades , according to data from Renaissance Capital. That's dried up this year — the third quarter was one of the slowest in decades — putting 2022 on pace to raise the least amount of proceeds in more than 30 years, the firm said. Rising interest rates are also weighing on companies that need to borrow money to grow. Using M & A to evolve There are a few large players in the industry that have proven track records of investing in innovative technology and acquiring smaller firms. "Big traditional agriculture has been making investments into smaller startups and that's helping push the evolution of portfolios," said Steve Hansen, managing director and equity analyst at Raymond James. "There's a number of ways to play smaller, more nimble companies that are growing faster but this is a tougher environment for them right now." Ag is one of the few where we have conviction that they can sustain earnings power into 2023." Executive director and senior analyst, Oppenheimer Kristen Owen One example is Deere & Co , an agriculture manufacturing firm and one of Owen and Hansen's top picks. This year, the company finalized becoming a majority owner of Kriesel Electric, an Austrian company that manufactures batteries. Kriesel's advanced battery technology will help Deere develop off-highway vehicles— like tractors and other farm equipment — and move towards a future of zero emissions in such equipment. The deal was worth $249.2 million. "You're seeing a little bit more of these larger companies dip their toe into the venture space and give these new technologies a chance," Owen said. Last year, Deere also purchased Bear Flag Robotics, a Silicon Valley agriculture technology startup that develops autonomous farm equipment, for $250 million. "As our customers face the challenges of needing to feed a growing world with limited resources, it is imperative that we continue to deliver solutions that enable them to do more with less," said a spokesperson for Deere. "Automation and autonomy as well as innovation in sustainable land management are critical steps forward in doing that, creating opportunities for them to unlock a more sustainable and profitable operation. Investing in partners who can help us drive towards those solutions will continue to be a priority for us." Deere's stock is up more than 11% this year, but it's trading about 17% below its all-time high. AGCO , an agricultural machinery manufacturer, has also made several investments or acquisitions in the last few years in new technology in the space. In May, it acquired JCA Industries, a company that develops autonomous software for agricultural machines. That followed its agreement in December 2021 to acquire Appareo Systems, another software engineering, hardware development and electronic manufacturing company. In 2021, AGGO also bought Farm Robotics and Automation, a precision livestock farming company. AGCO shares are down less than 1% since the start of the year. One of Owen's top picks in the space is Trimble , a mid-cap software company that has a precision agriculture offering that uses technology like GPS-enabled tractors and satellite imagery to help farmers use their fields effectively. The company has also been part of the trend of funding new technology – it invested $61 million in Monarch Tractor, a developer of autonomous tractors, with CNH Industrial . Trimble shares are down about 36% since January. Corteva is a top pick for Hansen, and its shares have gained more than 33% since January. The agriculture company in September bought Symborg, a Spanish microbiological technologies firm that makes biostimulants and biofertilizers for many kinds of crops and agriculture systems that boost results. "They really are the forefront of innovation, either internally or through acquisition," he said. Incentive to invest Of course, high inflation has weighed on the U.S. economy and prompted aggressive rate hikes from the Federal Reserve, stoking fears of a recession in the next year. While that presents headwinds for many industries, agriculture is somewhat distanced from these pressures because of the importance of food and organic materials for use in other industries, such as corn and soybeans in ethanol. "The key drivers for the space tend to run almost on their own biorhythm," said Hansen. There is economic sensitivity to some inputs, such as fuel costs and commodity prices, but the actual supply and demand fundamentals that drive crop prices are independent of the actual economic cycle, he added. In addition, grain inventories are at or near decade lows, a problem that signals need for more growing. Because of this, his firm is very constructive on the health and potential of the agriculture sector going into next year. Certain pockets of the industry are also experiencing tailwinds that should benefit them in the coming years, according to Owen. "It is certainly the case that we have had about a decade of underinvestment in our agricultural economy and now that we're experiencing a confluence of events that is sustaining that economy and really incentivizing investment in this space, that should really benefit investors," she said. "Ag is one of the few where we have conviction that they can sustain earnings power into 2023." That includes sustainability initiatives in fertilizer and energy transitions to renewable diesel, which require corn and soybeans. "You've got these tailwinds that are continuing to support this industry that are different than the macroeconomic view," she said. Eyes peeled for the future Given the market for new technology in agriculture and the number of companies growing, it's possible that a slew of firms may go public in the coming years, giving retail investors a chance to invest directly. Part of the reason that public offerings in the space have dried up is because of the decline of the special acquisition market, a way of going public that became popular in recent years. Such companies, called SPACs, raise money through an initial public offering and then select a target to take pubic by merging. They were prevalent in 2020 and 2021 because it is often an easier way to become publicly listed than the traditional IPO process. That market dried up with stocks plunging and regulators looking into many of the deals made in 2020 and 2021. Now, issuances have come to a halt — no SPACs were issued in July , and liquidations of SPACs have topped $12 billion so far this year. Because of this market, many companies are staying private longer, pushing potential public offerings out a few years. "There are more and more companies that are part of this later tranche that may come public in 2024 and 2025," said Owen. | 2022-10-24T17:10:28Z | www.cnbc.com | Investment has been pouring into technology in the agriculture space. How to play it | https://www.cnbc.com/2022/10/24/investment-has-been-pouring-into-technology-in-the-agriculture-space-how-to-play-it.html | https://www.cnbc.com/2022/10/24/investment-has-been-pouring-into-technology-in-the-agriculture-space-how-to-play-it.html |
There may be a path to a soft landing after all. At least that's what economists think at Goldman Sachs, which said the Federal Reserve still stands a 65% chance of keeping the economy out of a recession while bringing inflation back down to sustainable levels. In a pair of client notes filed Sunday, the Wall Street firm pinned its case on two pillars — that the labor market is beginning to come back into balance between supply and demand, and that wage growth is cooling enough in two key sectors to suggest that a wage-price spiral can be thwarted. "The odds that a recession will prove necessary have fallen a little because the first two steps of the required adjustment — slowing GDP growth to a below-potential pace and rebalancing supply and demand in the labor market — have gone remarkably well so far," Goldman economist David Mericle wrote. The Goldman case is loaded with caveats, in particular that global events could overtake domestic efforts to lower cost, and that the Fed still may get carried away with tightening policy and cause what the firm termed an "unnecessary recession." Still, the firm said that recent data on inflation and from the labor market point to the possibility that while growth will be anemic through 2023, the worst-case scenario can be avoided. "So far, slowing growth and rebalancing the labor market is going better than expected," Goldman economist Joseph Briggs wrote in a separate note. "Industry-level data strongly suggests that the path to a soft landing assumed in our baseline economic forecast is possible." More optimistic than most Goldman assigns a 35% probability that the economy enters a recession in the next 12 months. The firm expects GDP growth of just 0.3% this year and 1.1% in 2023. While that is well above what would be expected in normal times, it's actually more optimistic than some forecasts. The CNBC All-America Survey for the third quarter , released last week, showed that 68% of respondents expect the U.S. to enter recession soon, while 9% think the nation is already there. (The survey polled 800 registered voters and has a margin of error of plus or minus 3.5 percentage points.) Briggs said inflation-adjusted spending in the retail trade and accommodation and food services industries indicates consumers are pulling back. At the same time, the available jobs-to-workers gap is narrowing, and wage growth and price inflation are cooling as well, though still running at elevated levels. "Case studies on the retail trade and accommodation and food services industries strongly suggest that the path to a soft landing assumed in our baseline economic forecast is possible," Briggs wrote. Data from other industries, though, isn't as encouraging. Labor market conditions are "extremely imbalanced" in industries such as wholesale trade, professional and business services, as well as health care and social assistance, Briggs noted. Even with those imbalances, though, he said progress overall "generally supports the prospects of a soft landing." Likewise, Mericle said odds of a Fed-induced recession through excessive interest rate hikes "have likely risen somewhat." He also said that the odds of a recession from "some unforeseen factor" also are "somewhat higher than usual" while geopolitical risks "are also higher than usual." Markets will learn more about inflation and the state of the broader economy later this week. Third-quarter GDP numbers will be out Thursday, with the Dow Jones consensus looking for growth of 2.4% after two straight negative readings in the first half of the year. Personal consumption expenditures inflation, the Fed's preferred metric, hits on Friday, with expectations for 5.2% growth in core inflation year-over-year in September, up from 4.9% in the prior month. | 2022-10-24T18:41:51Z | www.cnbc.com | Goldman Sachs sees path to a soft landing for the economy getting clearer | https://www.cnbc.com/2022/10/24/goldman-sachs-sees-path-to-a-soft-landing-for-the-economy-getting-clearer.html | https://www.cnbc.com/2022/10/24/goldman-sachs-sees-path-to-a-soft-landing-for-the-economy-getting-clearer.html |
Lindsey Jacobson@in/lindsey-jacobson-8a48a420/@LindseyTweeted
Coalinga city officials estimate their small town will run out of water by Dec. 1st.
Pro-Tem Mayor Ray Singleton has attempted to purchase water for Coalinga from the open market, but he says it is priced way higher than what it is typically worth.
The California valley city, located inland between Los Angeles and San Francisco, is home to an estimated 17,465 people. All of the people living in Fresno County, where Coalinga is located, are experiencing a drought. It is the second driest year to date over the past 128 years, according to the National Oceanic and Atmospheric Administration.
Coalinga residents have been living under water restrictions like not watering their front lawns, not washing their cars outside and a moratorium on pools. If a resident wants to maintain their pool, they need to sign a contract with the town stating they will provide their own 30,000 gallons of water, according to Singleton. One of Singleton's current concerns is that the Fire Department needs to flush out the hydrants soon, and that could waste even more water.
The city is also the site of a state prison and state mental health hospital. The city has no control over how these facilities use water, and Singleton estimates they pull around 25 to 30 percent of the city's supply. He said he sees these institutions waste water and called it "frustratingly insane."
The Pleasant Valley State Prison in Coalinga told CNBC that it' reduced water usage by more than 21% since 2020 with steps like using pressurized water for cleaning, reducing urinal diaphragm capacity, reducing the washdown schedule of the wastewater treatment facility and reduced irrigation of landscaping. The hospital did not immediately respond to CNBC's request for comment.
Singleton has attempted to purchase water for Coalinga from the open market, but he says it is priced way higher than what it is typically worth. Singleton said the town may have to raise taxes but he's hoping to find a grant or other financial assistance so Coalinga will be able to provide each resident their required 55 gallons of water per day for health and safety standards.
The California Department of Water Resources said the persistent drought is impacting many communities the Bureau of Reclamation serves. They said they have been working closely with the City of Coalinga to find solutions, including finding water that may be transferred to the city. They also said that agency has funding available through the Urban Community Drought Relief grant program and would be ready to work with Coalinga to walk the town through the process. DWR said they will be able to "provide immediate assistance for whatever level of funding is needed to support the purchase of water for the city's needs."
Meanwhile, as the farmland around him has turned from trees to solar panels, Singleton also seemed to imply that the allocation of water could also have something to do with the changing local economy. Singleton asked "are we in a drought or are we in a drought?," gesturing to imply that the effects could be worse in Coalinga than elsewhere. He continued, "Because the state seems to be looking great around us and we're looking brown on the inside."
Where Americans are moving to escape climate change | 2022-10-24T20:12:57Z | www.cnbc.com | Coalinga, California, faces the end of its water supply by Dec. 1 | https://www.cnbc.com/2022/10/24/coalinga-california-faces-the-end-of-its-water-supply-by-dec-1.html | https://www.cnbc.com/2022/10/24/coalinga-california-faces-the-end-of-its-water-supply-by-dec-1.html |
If you are trying to get a jump on the leaders of the next bull market, you need to look forward — not backward, according to Kevin Barry, chief investment officer at Summit Financial. That means not relying on previous winners, like tech. The sector has been crushed in this year's bear market, leading some to wonder if the sell-off has provided an opportunity to buy. "History has shown us that the leaders of the last bull market are not the leaders of this bull market, at least in the last 50 years," Barry said. Energy, for instead, outperformed in the '70s, but consumer staples led the bull market in the 1980s, he said. Tech rode the wave in the late '90s and it took 20 years for it to rally back to those highs, Barry pointed out. This year, tech-heavy Nasdaq Composite is down about 30%. "The idea of, 'When does tech get cheap enough to buy' is the wrong idea," Barry said. "You should be focusing on, 'What will be leadership?'" When it comes to what could lead the market through the next bull market, energy looks promising, Barry said. "My analysis shows the amount of capital reinvestments by the firms themselves have been insufficient to increase supply and reliability of energy and therefore I think [energy] has a good likelihood of outperforming," he said. The sector is also showing signs of both absolute leadership and relative leadership, he said. "Right now the [Inflation Reduction Act] contains some negative things for fossil fuels, but in spite of that the XLE keeps rallying," he said. The Energy Select Sector SPDR Fund , XLE, is up about 57% year to date, yet the exchange-traded fund has seen outflows of more than $187 million in 2022, according to FactSet. Conversely, the tech-heavy ARK Innovation ETF , led by Cathie Wood, has lost more than 60% this year but has seen positive inflows, Barry said. More than $1 billion has poured into the fund this year, data from FactSet shows. "People are still putting money into trying to get yesterday's thing to happen again," Barry said. In addition to energy, Barry thinks industrials look interesting, particularly aerospace and defense. The sector may see restocking of materials used in the Ukraine-Russia conflict, he said. Financials also could be poised to lead, particularly insurance. For instance, as the cost of home repairs rise, people may be upping their coverage, he said. "Property and casualty insurance is making a new relative high, relative to everything else it is doing well," Barry said. While the best part of financials is insurance, regional and smaller banks should also fare well. People are still using their credit and debit cards, which provide income in the form of fees and interest, the lending business is still doing well and banks are benefiting from higher interest rates, Barry said. Overall, he likes small-cap stocks over large cap as leaders of the next bull market, value over growth, U.S. over international and equal-weight funds over market-weight funds. That could mean investors moving money out of the market-weighted SPDR S & P 500 ETF Trust and into something like the Invesco S & P 500 Equal Weight ETF , he said. | 2022-10-24T20:13:28Z | www.cnbc.com | Searching for the leaders of the next bull market | https://www.cnbc.com/2022/10/24/searching-for-the-leaders-of-the-next-bull-market.html | https://www.cnbc.com/2022/10/24/searching-for-the-leaders-of-the-next-bull-market.html |
Supreme Court Justice Samuel Alito, who wrote the majority opinion that overturned out the abortion rights case Roe v. Wade, assured the late Sen. Ted Kennedy in 2005 that he considered a key legal basis for Roe to be "settled," a new book reveals.
Senator Ted Kennedy (D-MA) boards an elevator after walking off the floor of the U.S. Senate after a roll call vote to achieve cloture on the nomination of Judge Samuel Alito to the US Supreme Court passed 72 to 25 January 30, 2006 in Washington, DC.
The comment was made as Alito was seeking Senate confirmation to the court during a visit to Kennedy's office, wrote John Farrell in the Times report. Farrell's new book, "Ted Kennedy: A Life," which features details of the diary entries, is being published Tuesday.
In July, Alito wrote the majority decision in the case Dobbs v. Jackson Women's Health Organization, which overturned both Roe and another landmark abortion rights case, Planned Parenthood v. Casey, which was decided in 1992.
The cases he mentioned are Griswold v. Connecticut; Lawrence v. Texas, which in 2003 established the right to engage in private sexual acts; and the 2015 ruling in Obergefell v. Hodges, which said there is a right to same-sex marriage. | 2022-10-24T22:15:07Z | www.cnbc.com | High court Justice Alito assured Kennedy on abortion rights: NY Times | https://www.cnbc.com/2022/10/24/supreme-court-justice-samuel-alito-assured-kennedy-on-abortion-rights.html | https://www.cnbc.com/2022/10/24/supreme-court-justice-samuel-alito-assured-kennedy-on-abortion-rights.html |
: "I don't know what's in that fund. I can't recommend it."
: "Constellation Energy is still good."
: "They're not good enough. ... I just don't want you to buy that one."
: "I'd rather see you in one that should not be where it is, that yields a very good price and that's Morgan Stanley
: "I think it may be time to pull the trigger." | 2022-10-24T23:46:12Z | www.cnbc.com | Cramer's lightning round: I can't recommend Icahn Enterprises | https://www.cnbc.com/2022/10/24/cramers-lightning-round-i-cant-recommend-icahn-enterprises.html | https://www.cnbc.com/2022/10/24/cramers-lightning-round-i-cant-recommend-icahn-enterprises.html |
Stocks in the Asia-Pacific rose in early trade Tuesday after Wall Street's second straight positive session.
Hong Kong's Hang Seng index and Chinese tech stocks in the U.S. dropped sharply to start the week with investor sentiment turning following the conclusion of the China's party congress and the release of a slew of delayed economic data.
added 0.65% and the Topix climbed 0.79%. In Australia, the S&P/ASX 200
was up 0.52%.
was just above the flatline, while the Kosdaq gained 0.44%. The MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.14%.
Singapore is due to release inflation data on Tuesday, while HSBC
is reporting earnings.
in Japan added 0.8% in the first hour of the trading session and the Topix climbed 0.84%. In Australia, the S&P/ASX 200
hovered just under the flatline at the open before crossing into positive territory. It was last up 0.67%, and the Kosdaq gained 0.93. | 2022-10-25T00:47:07Z | www.cnbc.com | Asia markets: Stocks mostly open higher in the region | https://www.cnbc.com/2022/10/25/asia-markets-japanese-yen-stocks-currencies-economic-data.html | https://www.cnbc.com/2022/10/25/asia-markets-japanese-yen-stocks-currencies-economic-data.html |
This year, the S & P 500 has declined by more than 21%. But it has also seen multiple weeks where stocks have risen by more than 5% despite slower economic growth expectations. Such bear market rallies, according to Madison Faller, global investment strategist at JPMorgan Private Bank, were well suited for investors to sell stocks ahead of a more significant market fall. "A lot of the bounces that we've seen over the course of the last week or so have been primarily technically driven in nature," Faller said, referring to stock trading based on patterns on a chart rather than financial analysis of companies. For example, the SPY ETF , which tracks the U.S. large-cap index, has risen by more than 5% in a week four times this year and twice more than 7%, according to data from Koyfin. "I would certainly be using that exposure to de-risk my portfolio," said Faller. "I don't think that they have a really strong fundamental foothold at the moment." Why sell stocks? The strategist, who advises clients at the investment bank, said that while the financial system has not shown "broad based cracks" yet, she was concerned over further tightening in monetary policy, which acts on the economy with a lag. "We do expect a recession to take hold by mid-2023 for the economy," she said adding that JPMorgan Private Bank expects a "mild to moderate" recession. "If we see the S & P 500 fall to 3500 [points], that's when a more mild recession would likely be discounted." The index is currently sitting at roughly 3,750 points. Last week, Bank of America also advised clients not to trust the recent market rally as its research pointed toward further declines in the stock market. Hedge fund manager Dan Niles also reiterated his belief that the S & P 500 will bottom at 3,000 points. However, he said the stocks will rise this month until Oct. 25, when stock analysts will downgrade their estimates after mega-cap tech companies report third-quarter results. "I think we need to see further earnings downgrades come to fruition before we actually have a very durable bottom in equity markets," Faller said, echoing other major market participants. What to buy? Faller said she sees one of the "best opportunities" to buy high-quality investment-grade bonds. The yield on the 10-year Treasury hit a fresh 14-year high on Friday, pushing up the yield on corporate bonds even further. Bond prices move inversely to yields. Faller believes companies with good credit ratings are unlikely to default in the current economic environment and are currently undervalued. On Wednesday, BlackRock advised its clients to jump on the "short-lived" opportunity in the fixed-income market. The world's largest asset manager said as the market was seeing "max pessimism in rates" it saw values in some of its short-duration bond funds such as: iShares Short Treasury Bond ETF: It's comprised of bonds that mature in less than a year. iShares 0-5 Year TIPS Bond ETF: It has exposure to short-term U.S. Treasury Inflation-Protected Securities (TIPS). iShares 1-5 Year Investment Grade Corporate Bond ETF: It has exposure to U.S. corporate bonds with maturities between one to five years. | 2022-10-25T01:17:35Z | www.cnbc.com | Sell stocks in a bear market rally and look to this alternative: JPMorgan strategist | https://www.cnbc.com/2022/10/25/sell-stocks-in-a-bear-market-rally-and-look-to-this-alternative-jpmorgan-strategist.html | https://www.cnbc.com/2022/10/25/sell-stocks-in-a-bear-market-rally-and-look-to-this-alternative-jpmorgan-strategist.html |
's debt problems began rattling investors, the country's real estate troubles have only gotten worse. Some homebuyers refused to pay their mortgages due to construction delays, while property sales plunged. Once-healthy developers are also struggling to repay debt.
was more than 2.6 trillion yuan as of mid-2021, after which the three developers' financial problems worsened. They make up just a fraction of the industry.
We do not expect bail outs of the troubled developers, while the 'market-oriented' approach of supporting high-quality developers could continue...
The company defaulted later that year, and several industry peers from Kaisa to Shimao followed suit in subsequent months. Country Garden
, the largest developer by sales, described the property market this year as having "slid rapidly into severe depression." | 2022-10-25T02:48:58Z | www.cnbc.com | China property: Why Beijing won't bail out its real estate sector | https://www.cnbc.com/2022/10/25/china-property-why-beijing-wont-bail-out-its-real-estate-sector.html | https://www.cnbc.com/2022/10/25/china-property-why-beijing-wont-bail-out-its-real-estate-sector.html |
In less than two months, Britain will have a third prime minister. The financial markets have given a positive reaction to Sunac's victory. We have seen foreign exchange, bond and stock markets, rise.
The pound rose to $1.1326 at one point. UK 10-year and 30-year government bond yields fell slightly, while the FTSE 100 index closed 0.64% higher.
But investors believe the market will shift its focus back to economic fundamentals after digesting the latest developments in politics.
Stagflation in the UK, combined with fiscal and current account deficits, will limit the potential for the pound to rise. According to analysts, the pound to dollar will hover between 1.1 and 1.15 until the Sunak government announces its policy direction.
Sunac mentioned two key words in his speech after his victory: stability and unity. This actually represents the main challenges he will face after taking office: on the one hand, he wants to stabilize the slowing British economy and financial markets; on the other hand, he also needs to unite the Conservative Party, which is constantly divided internally and whose popularity is declining.
On the economic front, the latest monthly survey released by research firm Standard & Poor's showed that the UK composite purchasing managers' index PMI fell to 47.2 in October, well below market expectations of 48.1. A composite PMI below 50 indicates that the UK manufacturing and service industries are experiencing a decline. Several economists believe that after the recent political and financial market turmoil, the British economy has accelerated and may even be in recession.
And on the political front, Sunac faces an increasingly divided Conservative Party. There are still many members of the party who believe that Sunak played a significant role in the downfall of former Prime Minister Johnson. According to a recent survey conducted by Opinium, only 23% of Britons support the Conservative Party, compared to 50% for its opposition party, the Labour Party. Currently, most analysts believe that there is little chance of a Conservative victory in the next general election.
In the face of many challenges, Sunac's personal background also makes some people doubt whether he is "grounded" enough. An Indian-born British immigrant, he graduated from Oxford and Stanford, then became an investment executive. His wife is the daughter of one of India's top tycoons. This background could lead to controversies when he introduces fiscal plans such as tax increases and public spending cuts.
The Milbank Family Senior Fellow at the Hoover Institution, Stanford University
"Rishi Sunak is a wealthy guy. He's from a middle class background, went to a private school and went to Oxford. , this inevitable austerity and disinflationary policy to the British public."
Indeed, it could be a tough winter for the British public. Taxes are likely to rise, inflation remains high, and there is a wave of strikes, power outage warnings, and more. Some analysts say that some Britons may already be deciding in their minds who the next leader will be, and not just the head of the Conservative Party. | 2022-10-25T03:49:52Z | www.cnbc.com | CCTV Script 25/10/22 | https://www.cnbc.com/2022/10/25/cctv-script-25/10/22.html | https://www.cnbc.com/2022/10/25/cctv-script-25/10/22.html |
MBG-DE
NK-FR
A Lithium-ion battery photographed at a Volkswagen facility in Germany. The EU is looking to increase the number of electric vehicles on its roads in the coming years.
Paris-headquartered minerals giant Imerys
plans to develop a lithium extraction project that it's hoped will help meet demand and secure supply for Europe's emerging electric vehicle market.
In a recent interview with CNBC, the CEO of Mercedes-Benz
sketched out the current state of play, as he saw it when it came to the raw materials required for EVs and their batteries. | 2022-10-25T05:21:14Z | www.cnbc.com | French project aims to supply Europe with lithium | https://www.cnbc.com/2022/10/25/french-project-aims-to-supply-europe-with-lithium.html | https://www.cnbc.com/2022/10/25/french-project-aims-to-supply-europe-with-lithium.html |
Kevin Simpson is navigating this inflationary environment by targeting companies that use free cash flow to raise dividends. The founder and chief investment officer at Capital Wealth Management manages the Amplify CWP Enhanced Dividend Income ETF (DIVO) , which has a five-star rating from Morningstar. The large cap dividend growth portfolio is down 6.9% this year, handily surpassing the S & P 500,and places it in the top quartile of performance among its peers. Simpson attributes the outperformance to the firm's strategy. DIVO includes roughly 25 to 30 large-cap, blue chip stocks that have a history of raising dividends and, more importantly, increasing earnings to support those dividends, according to the portfolio manager. Simpson also protects the portfolio by writing covered calls to hedge against market volatility. "Markets don't always go straight up, stock prices don't always go up, and when you have periods of a market downturn, or range bound markets, or a flat market, being compensated through dividends is really very powerful," Simpson said. "And having companies that are increasing those dividends makes it all the more easy to be an investor in a good company when the economy might not be firing on all cylinders." The importance of dividends For investors, dividends can help protect portfolios during periods of price volatility, an important consideration at a time when Wall Street is finding it way through the highest inflation in 40 years and an aggressive rate hiking campaign from the Federal Reserve that could tip the economy into a recession. Historically, dividends have counted for roughly one-third of the total return in the S & P 500 since 1945 , according to CFRA chief investment strategist Sam Stovall. Simpson said he is interested in stocks such as Devon Energy that are raising dividends for shareholders using free cash flow, in addition to a more usual fixed dividend. Devon Energy said earlier in 2022 that it's earmarking up to half its free cash flow to return to shareholders. "If you were to take the potential for 50%, or up to 50% of free cash flow, and add that variable dividend to the fixed dividend, it's highly likely that their dividend yield could be anywhere between 7% and 9%," Simpson said. "And that's with a company that's generating lots of cash. And whether the price of oil is at $65 or $95, they're doing an incredibly robust business." Devon Energy has a dividend yield of 6.2%, according to FactSet data. The stock is up more than 70% this year. Other energy companies, including Chevron , have helped DIVO outperform. The exchange traded fund has a 6% allocation to Chevron alone, making it the top holding, according to Morningstar. Chevron is up more than 47% in 2022. It has a 3.3% dividend yield. "When you invest in the stock market the way we do, you don't have to call bottoms," Simpson said. "We want to practice the philosophy that we want to lose as little as possible." | 2022-10-25T05:21:20Z | www.cnbc.com | One ETF manager is beating the market using this method to find better income stocks | https://www.cnbc.com/2022/10/25/one-etf-manager-is-beating-the-market-using-this-method-to-find-better-income-stocks.html | https://www.cnbc.com/2022/10/25/one-etf-manager-is-beating-the-market-using-this-method-to-find-better-income-stocks.html |
"Clients remain concerned about persistently high inflation, elevated energy prices, the war in Ukraine and residual effects of the pandemic," Ralph Hamers, CEO of UBS, said in a statement.
UBSG-CH
.STOXX
on Tuesday reported a net income of $1.7 billion for the third quarter of this year, slightly above analyst expectations, with the Swiss bank citing a challenging environment.
Other highlights for the quarter include: | 2022-10-25T05:21:26Z | www.cnbc.com | UBS earnings Q3 2022 | https://www.cnbc.com/2022/10/25/ubs-earnings-q3-2022.html | https://www.cnbc.com/2022/10/25/ubs-earnings-q3-2022.html |
He gave only a short speech Monday, saying the U.K. needed "stability and unity" to face its current "profound economic challenge."
Rishi Sunak to be next British Prime Minister
The 42-year-old will be the youngest U.K. prime minister in modern history, and the first person of color to lead the country, which U.S. President Joe Biden said Monday was "a groundbreaking milestone." Sunak's parents are of Indian descent and in the 1960s moved from East Africa to the U.K.
Truss' resignation came after just 44 days into her tenure, on 10 of which government business was suspended due to the death of Queen Elizabeth II. A wave of Conservative MPs sent letters expressing a lack of confidence in her government after she oversaw a controversial "mini-budget" that rocked financial markets, making government borrowing more expensive and raising interest rate expectations. | 2022-10-25T08:23:59Z | www.cnbc.com | Rishi Sunak set to become UK PM after meeting King Charles | https://www.cnbc.com/2022/10/25/rishi-sunak-set-to-become-uk-pm-after-meeting-king-charles-.html | https://www.cnbc.com/2022/10/25/rishi-sunak-set-to-become-uk-pm-after-meeting-king-charles-.html |
The WhatsApp app
WhatsApp, the messaging app owned by Facebook parent Meta
, suffered a global outage on Tuesday.
Users reported problems with sending and receiving messages. Normal service on WhatsApp had still not been restored at around 4:05 a.m. ET.
WhatsApp was not immediately available for comment when contacted by CNBC. The messaging service, which has around 2 billion users, is particularly popular in countries such as India and Brazil.
This is a breaking news story. Please check back for more. | 2022-10-25T08:24:05Z | www.cnbc.com | WhatsApp is down globally | https://www.cnbc.com/2022/10/25/whatsapp-is-down-globally.html | https://www.cnbc.com/2022/10/25/whatsapp-is-down-globally.html |
Asset management giant BlackRock announced Tuesday that its iShares arm is cutting the fee on a large dividend ETF. The fund, previously known as the iShares U.S. Dividend and Buyback ETF, will now have a management fee of 0.05%, down from 0.25%. It has about about $230 million in assets under management. The firm is also adding the fund to its core suite of funds and renaming it the iShares Core Dividend ETF . It will continue to trade under the DIVB ticker. "We see very much the core as a phenomenal instrument for investors to build better portfolios. And at a moment in time where you have rising rates, you have an inflationary environment, we believe that dividend equities in the U.S. is something that investors could use in their portfolios," said Armando Senra, head of iShares Americas. The core suite is a small group of low cost funds, including the iShares Core S & P 500 ETF (IVV) , that have about $800 billion in total assets. The suite serves as a tool for investors and advisers to more easily implement model portfolios. It was started in 2012. The firm said that the fund is now the lowest fee dividend ETF on the market in the U.S.. Some of the biggest dividend funds from rival Vanguard, such as the Vanguard Dividend Appreciation ETF (VIG) , carry a fee of 0.06%. The fee cut comes as investors have shown a growing appetite for income-generating funds. According to Strategas Research, Treasuries and cash-liked bonds are the two subcategories of ETFs with the largest inflows of 2022. The value subcategory has also been popular this yea. The iShares fund is down 13.9% in 2022, outperforming the broader market, according to FactSet. Since its inception in 2017, the fund has an average annualized total return of about 10%. That performance would be slightly better at the newly reduced fee level. Dividends are distributed on a quarterly basis, and the fund's last four payouts would equate to a dividend yield of roughly 2.1%. The fund's top holdings include Apple, Microsoft, Meta Platforms and JPMorgan Chase. Its benchmark is the Morningstar US Dividend and Buyback Index. | 2022-10-25T12:58:26Z | www.cnbc.com | BlackRock's iShares slashes its fee on a $200 million dividend ETF by 80% | https://www.cnbc.com/2022/10/25/blackrocks-ishares-slashes-its-fee-on-a-200-million-dividend-etf-by-80percent.html | https://www.cnbc.com/2022/10/25/blackrocks-ishares-slashes-its-fee-on-a-200-million-dividend-etf-by-80percent.html |
Investors are swarming back into the stock market at a near-record pace with equities in the middle of a rapid rebound, according to Bank of America. Inflows into single stocks, as a percentage of S & P 500 market cap, over the last three weeks were in the 99th percentile of history since 2008, Bank of America said. The Wall Street firm aggregated flows across many execution platforms and trading desks, and the data included hedge funds, institutional clients and private clients. Stocks staged a big comeback recently as investors reassessed the Federal Reserve's tightening path. The major averages just had their biggest weekly gains since June last week, with the Dow Jones Industrial Average advancing 4.9%. The S & P 500 and Nasdaq rose 4.7% and 5.2%, respectively. Bank of America said its clients were net buyers of U.S. equities for six straight weeks with inflows into both stocks and ETFs. Buying was led by hedge fund clients and private clients, the bank said. "Most prior instances of extreme inflows following the Global Financial Crisis typically were preceded by extreme outflows in the several months prior – not the case this time," said Jill Carey Hall, Bank of America's equity and quant strategist, in a note. "Cumulative $ inflows YTD have also been the most positive in our data history." Still, some on Wall Street don't believe this rally has lasting power as the Fed still hasn't taken inflation under control. Mohamed El-Erian cautioned investors on Monday that the market comeback is not supported by fundamentals. | 2022-10-25T13:28:54Z | www.cnbc.com | Bank of America: Investors pile into single stocks at near historic pace | https://www.cnbc.com/2022/10/25/bank-of-america-investors-pile-into-single-stocks-at-near-historic-pace.html | https://www.cnbc.com/2022/10/25/bank-of-america-investors-pile-into-single-stocks-at-near-historic-pace.html |
In this market, value names are the place to be, according to Wharton Business School professor emeritus Jeremy Siegel. The long-term investor is staying in the market and says the recent environment has provided a good opportunity. "For young people with cash, I think this is a great time to come in," Siegel said on CNBC's " Squawk Box " Tuesday. Volatility has been a major theme for the stock market this year, with the S & P 500 down about 20% so far in 2022. The tech sector, once a high flier, has been particularly hard hit. The tech-heavy Nasdaq has lost nearly 30% year to date. Siegel sees the momentum continuing for value stocks , which he said are trading for 12 or 13 times earnings. In comparison, the S & P 500 has a price-to-earnings ratio of 17, according to FactSet. The key is to stay diversified, instead of focusing on specific sectors, he noted. "The swing that we saw still has a way to go away from the tech, more towards dividend paying, more towards those value investments in 2023," Siegel said. What could derail markets is the Federal Reserve continuing its aggressive rate hikes into next year, he said. The central bank is expected to raise rates by 75 basis points next week in an effort to combat inflation. "What scares the market the most is the Fed is going to stay this tight through 2023, which I absolutely think would be really a disaster for the economy," he said. In fact, Siegel said he expects the Fed's interest rate increases are already making an impact on inflation. "There is going to be a pivot soon," Siegel said of Fed policymakers. While he still expects there will be a 75 basis point hike next week, he's anticipating some language that could indicate the Fed may slow down. "I think they are going to acknowledge that there has been a tremendous amount of progress made on inflation," he said. | 2022-10-25T15:00:07Z | www.cnbc.com | Wharton's Jeremy Siegel says it's a great time for young investors to get into market | https://www.cnbc.com/2022/10/25/whartons-jeremy-siegel-says-its-a-great-time-for-young-investors-to-get-into-market.html | https://www.cnbc.com/2022/10/25/whartons-jeremy-siegel-says-its-a-great-time-for-young-investors-to-get-into-market.html |
Buybacks are expected to come in full force in the fourth quarter, poised to give the volatile stock market a big boost. Corporations are already on pace to repurchase more than $1.1 trillion of U.S. stock this year, which will go down as the most ever in the history of the stock market, according to data from Goldman Sachs. There have been signs of heightened activity as of late, the Wall Street firm said. "Last week was a VERY active week on our buyback desk despite still being in blackout period," John Flood, a trader at Goldman Sachs, said in a note. Publicly traded companies have a policy that restricts trading in their own shares beginning two weeks prior to the quarter end, through 48 hours after earnings are publicly released. Most of the current buybacks are executed through Rule 10b5-1, which allows companies to set up a predetermined plan to buy back stock. Companies are trying to take advantage of lower valuations amid 2022's sell-off. The S & P 500 is down 20% this year as investors worried that the Federal Reserve's aggressive rate hikes could tip the economy into a recession and take down profits. Companies could also be rushing to buy back shares to avoid the new 1% excise tax on buybacks in the Inflation Reduction Act of 2022, effective for taxable years beginning after December 31, 2022. "I think it will be heavy quarter, as we see Q1,'23 purchases accelerated into Q4 to avoid the new tax, and cover more employee options," Howard Silverblatt, S & P's senior index analyst, told CNBC. Buybacks have been a popular way for companies to return cash to shareholders, competing with dividends. Corporate America also uses share repurchases to improve earnings per share, since buybacks reduce the share count. Repurchases took a hit during the depth of the pandemic as companies focused on conserving cash, cutting costs and managing liquidity risk stemming from the crisis. | 2022-10-25T16:01:22Z | www.cnbc.com | Stocks could get a lift from this huge buying force in the fourth quarter | https://www.cnbc.com/2022/10/25/stocks-could-get-a-lift-from-this-huge-buying-force-in-the-fourth-quarter.html | https://www.cnbc.com/2022/10/25/stocks-could-get-a-lift-from-this-huge-buying-force-in-the-fourth-quarter.html |
South Korea, U.S. in 'intense conversation' over EV tax credits, trade ambassador says
Hyundai executives and government officials break ground on the automaker's new "Metaplant America" in Bryan County, Georgia, on Tues., Oct. 25, 2022.
"We are in very intense conversation at the moment," Cho said Tuesday following the groundbreaking of a $5.5 billion electric vehicle plant by Hyundai Motor Group
near Savannah, Georgia. "There is a great wealth of goodwill and determination to find a solution on both sides."
Hyundai, which is the second best-seller of all-electric vehicles in the U.S. behind Tesla
, has argued the Inflation Reduction Act is unfair, as South Korea — where it currently produces its electric vehicles — has a free trade agreement with the U.S.
Jose Munoz, global president and chief operating officer, described the loss of the credits as a huge blow to the automaker's bottom line. Hyundai and others are lobbying for some of those requirements to be reversed. Hyundai and Kia operate their businesses separately in the U.S. but are owned by Hyundai Motor Group.
U.S. Deputy Secretary of Commerce Don Graves during the event on Tuesday called South Korea a strong trade partner, but did not comment on the Inflation Reduction Act. Last week, U.S. Trade Representative Katherine Tai spoke with Korea's Minister for Trade Ahn Dukgeun about the IRA. | 2022-10-25T16:31:44Z | www.cnbc.com | IRA EV tax credits: South Korea, U.S. in working to adjust regulations | https://www.cnbc.com/2022/10/25/ira-ev-tax-credits-south-korea-us-in-working-to-adjust-regulations.html | https://www.cnbc.com/2022/10/25/ira-ev-tax-credits-south-korea-us-in-working-to-adjust-regulations.html |
SEATTLE — Breakthrough Energy Ventures, the climate technology investment firm started by Microsoft
co-founder Bill Gates, will begin to invest more in companies that help people and businesses adapt to the consequences of climate change.
It's time to start accepting reality and that we're not going to be able to do this fast enough, the ship is too big, it's too hard to steer.
Eric Toone
Investment Committee, Breakthrough Energy Ventures
In an aerial view, the San Gabriel River and the exposed lakebed of the San Gabriel Reservoir are seen on June 29, 2021 in the San Gabriel Mountains near Azusa, California.
The rise of floating infrastructure | 2022-10-25T17:32:34Z | www.cnbc.com | Bill Gates' climate tech investing company BEV moving into adaptation | https://www.cnbc.com/2022/10/25/bill-gates-climate-tech-investing-company-bev-moving-into-adaptation.html | https://www.cnbc.com/2022/10/25/bill-gates-climate-tech-investing-company-bev-moving-into-adaptation.html |
Secretary of Labor Marty Walsh speaks during a news conference at the White House in Washington, April 2, 2021.
"I still think that we're gonna have job gains as we move into the end of this year, early next year. A lot of people are still looking at different jobs," he told CNBC's Kayla Tausche at the virtual event. "We saw a lot of moving around over this last course of the year. People leaving jobs, getting better jobs, and I, you know, I'm not convinced yet that we're headed towards that."
"I think there's a way to do that by creating good opportunities for people so they have opportunities to get into the middle class, and not enough people in America are working in those jobs, quite honestly. ... I think there's a lot of Americans out there right now that have gone through the last two years, a lot of concern in the pandemic, they were working in a job maybe making minimum wage, maybe they had two or three jobs. Really I think the best way to describe what is what is a middle class job is a job you can work, one job, get a good pay, so you don't have to work two and three jobs to support your family."
"It shocks me that there are members in the building behind me, if you can't see the building behind me it's the Capitol, that people think that families can raise their family on $7-plus, on the minimum wage in this country," he said.
Amid one of the tightest labor markets in history, Walsh said the political parties approach to immigration — "getting immigration all tied up" — is among the most consequential mistakes the nation can make in labor policy.
"We need a bipartisan fix here," Walsh said. "I'll tell you right know if we don't solve immigration ... we're talking about worrying about recessions, we're talking about inflation. I think we're going to have a bigger catastrophe if we don't get more workers into our society and we do that by immigration."
"We haven't necessarily said what companies are affected by it, and what business are affected by it. What we're looking at is people that are employees that are working for companies that are being taken advantage of as independent contractors. We want to end that," Walsh said.
New gig economy rules look like 'gut punch' for Uber and Lyft, says Dan Ives
The Labor Secretary added that the idea independent contractor want to retain their flexibility doesn't wash with him. "Flexibility is not an excuse ... pay somebody as an employee. You can't use that as an excuse."
Walsh, a union-book carrier, said that the public support for unions should be matched by actual gains in union ranks in the next two years. The most recent survey available from the Bureau of Labor Statistics showed that labor jobs decreased by more than 240,000 in 2021, even as U.S. public support for unionization has surged and major brands including Apple, Amazon, and Starbucks face a rising tide of unionization at stores and operations like warehouses, albeit still on the margins as far as total numbers of workers they employ.
"I don't have the number of 2022, but 2021 was unique year," Walsh said. "The numbers went down in a lot of ways because companies unions weren't organizing number one and number two, we had a pandemic and a lot of people retired, left their business or they retired. Those jobs weren't back filled by companies. ... It's like 65%, 70% of Americans still looking favorably upon unions ... the highest in 50 years. I don't think you'll see the benefit of that organizing until probably 2023, 2024."
"Childcare is is a basic necessity to get millions of women back into the workforce on a full-time basis," he said.
"We have to respect them and pay pay them better wages. Anyone watching today that has kids in child care, you know, you're paying 30%, 40%, 50%, 60% of your salary for child care," he said. "A lot of families have made the decision 'we don't want to have two people working, one person will maybe stay home, work part time and make up those costs,' so that issue has to be resolved. It's not just an economic issue. It's a human human rights issue in our country to get good child care," he added.
Tim Mullaney | 2022-10-25T18:02:57Z | www.cnbc.com | A 'catastrophe' is coming for economy: Labor Secretary Marty Walsh | https://www.cnbc.com/2022/10/25/a-catastrophe-is-coming-for-economy-labor-secretary-marty-walsh.html | https://www.cnbc.com/2022/10/25/a-catastrophe-is-coming-for-economy-labor-secretary-marty-walsh.html |
Fake billionaire, Harvard MBA grad Justin Costello denied bail after judge calls him 'economic danger' to public
The former fugitive Justin Costello was ordered detained without bail pending trial because he is a serious flight risk and economic danger to the community, a federal judge said in a court filing.
An indictment and related Securities and Exchange Commission complaint accuses Costello of complex schemes involving penny stocks, shell companies, and a cannabis banking firm.
The former fugitive accused of posing as a billionaire, a Harvard MBA and Iraq war vet to scam people out of $35 million was ordered detained without bail pending trial in large part because he is "an economic danger to the community," a federal judge said in a court filing.
Costello's lawyer Cindy Muro did not respond to messages seeking comment.
He is accused in the indictment of swindling thousands of investors and others in complicated schemes involving penny stocks, shell companies and a banking firm that did business with three unrelated cannabis companies. The Securities and Exchange Commission has sued Costello and another man, 44-year-old Radford, Virginia, resident David Ferraro, in a civil case alleging related fraudulent conduct.
Among other allegations, Costello is accused of using social media sites to coordinate false claims about publicly traded stocks to manipulate their prices so he could profit.
As part of the alleged scams, Costello falsely claimed to be worth a billion dollars or more and to have served two tours in Iraq as a member of the special forces, where he purportedly was shot twice. He also claimed to have "managed money for wealthy individuals, including a Saudi sheikh," and that "he had 14 years of experience on Wall Street," the indictment said.
"None of that is true," a press release by U.S. Attorney's Office for Washington said.
Prosecutors said the FBI was able to locate Costello by tracking him on his cell phone. | 2022-10-25T18:03:16Z | www.cnbc.com | Fugitive Justin Costello denied bail in stock, cannabis fraud case | https://www.cnbc.com/2022/10/25/fugitive-justin-costello-denied-bail-in-stock-cannabis-fraud-case.html | https://www.cnbc.com/2022/10/25/fugitive-justin-costello-denied-bail-in-stock-cannabis-fraud-case.html |
The stock market appears to be finding its footing in the middle of earnings season, and strong reports from tech giants could add more fuel to the recent rally. The tech earnings season will hit its stride after the bell on Tuesday, with Alphabet and Microsoft reporting. Meta Platforms , Apple and Amazon follow later in the week. This area of the market has been hit hard in 2022, as higher interest rates and growing recession concerns have driven investors away from high growth stocks. But investors have started to dip a toe back into more growth-oriented areas of the market. There have been five straight weeks of inflows for tech funds, and eight for communications services funds, according to Bank of America. Big earnings reports have a tendency to move groups of similar stocks, making exchange traded funds an attractive way to gain exposure. One of the most popular ways to gain exposure to the tech sector is the Vanguard Information Technology ETF (VGT) , which has $39 billion in net assets. The fund has a management fee of just 0.1% and is down about 28% for the year. The Vanguard fund's top holdings include Apple, Microsoft and Nvidia. For investors looking for a group that is even more beaten down, the iShares Expanded Tech Software ETF (IGV) might be worth a look. The fund has dropped 32% this year and offers higher exposure to names like ServiceNow and Palo Alto Networks . The fund is pricier than the Vanguard option, but still comes in with a management fee of just 0.4%. It has a three-star rating from Morningstar. Most ETFs are market-cap weighted, meaning that the large tech names that are already present in most investors' portfolios have a big impact on the funds. One way to mitigate this is an equal-weighted ETF, like Invesco's S & P 500 Equal Weight Technology ETF (RYT). The fund, which has a management fee of 0.4%, is down about 26% for the year. It also has a four-star rating from Morningstar. Investors should be sure to look at a fund's holdings before buying an ETF for a thematic investment. Some stocks typically thought of as "tech" names, such as Meta Platforms, are classified by some firms as communications services or consumer discretionary and are not always included in information technology ETFs. And some funds that do include all of the big names, like the Invesco QQQ Trust , may also have large exposures to other non-tech companies. | 2022-10-25T19:03:53Z | www.cnbc.com | 3 ETFs to buy if earnings confirm the bottom is in for tech stocks | https://www.cnbc.com/2022/10/25/3-etfs-to-buy-if-earnings-confirm-the-bottom-is-in-for-tech-stocks.html | https://www.cnbc.com/2022/10/25/3-etfs-to-buy-if-earnings-confirm-the-bottom-is-in-for-tech-stocks.html |
Oil-services firm Halliburton (HAL) reported better-than-expected results for the third quarter Tuesday morning, bolstering the Club's long-term investment case in the energy stock. Total revenue climbed by 39% year-over-year to $5.36 billion, beating analysts' forecasts of $5.34 billion in sales. Earnings-per-share soared by 131% compared with the same period last year to 60 cents a share, ahead of a consensus forecast of 56 cents a share. Bottom line Halliburton served up another robust quarter on the back of increased demand in North America and internationally. With strong oil demand expected to persist and supplies tight due to years of underinvestment, Halliburton should be able to further expand profit margins and increase selling prices. We expect Wall Street's earnings estimates to be revised higher on the back of this print and, as a result, we think shares have further upside. We also see the potential for Halliburton to raise its dividend in the future, should the board approve it, thanks to a strong balance sheet and supportive operating environment. West Texas Intermediate — the U.S. oil benchmark — rose 0.5% in midday trading, to $85 per barrel. Shares of Halliburton were slightly higher, at $34.66 a share. Key company metrics Sales in completion and production: $3.14 billion, a 47% year-on-year increase and up 8% sequentially, exceeding analysts' expectations of $3.06 billion. Sales in drilling and evaluation: $2.22 billion, up 29% year-over-year and up 3% sequentially, short of the consensus sales estimate of $2.25 billion. Sales in North America: $2.6 billion, up 63% year-on-year and 9% quarter-over-quarter. Sales internationally: $2.7 billion, up 21% year-on-year and 3% sequentially. Total operating income: $846 million, ahead of the consensus estimate of $799 million. Operating margin: 16%, an increase of 393 basis points year-over-year. Operating income for completion and production: $583 million, up more than 80% year-over-year and ahead of a consensus estimate of $555 million, with the operating margin expanding 350 basis points year-on-year and 150 basis points sequentially. Operating income for drilling and evaluation: $325 million, a nearly 75% jump compared to the same period last year, beating analysts' estimates of $304 million, with the operating margin expanding 380 basis points year-over-year and 140 basis points sequentially. Free cash flow: $543 million, short of consensus expectations for $583 million . Outlook Halliburton's management on Tuesday called their outlook "strong" and said oil-and-gas supply would remain "tight for the foreseeable future." The management team cited "historically low inventory levels, production levels well below expectations and temporary actions such as the largest ever [strategic petroleum reserve] release". At the same time, demand is resilient and should remain so, according to management. Despite volatility in oil prices, management remains confident that the strength seen in recent quarters will endure as "only multiple years of increased investment in existing and new sources of production will solve the short supply." In North America, management expects fourth-quarter revenue in its completion and production division to increase by low-to-mid-single digits, with about 50 to 100 basis points of margin improvement. Sales from drilling and evaluation are expected to increase by low-to-mid-single digits with margin improvement of 75 to 125 basis points. At the same time, given the company's strong balance sheet and positive outlook, management said they're able to "have greater flexibility to increase the cash we return to shareholders" through dividends and/or share buybacks. The management team highlighted that with $2.4 billion of debt retired since 2020 (including $600 million retired in the third quarter) Halliburton is "quickly approaching" their near-term average debt target of two times gross debt to EBITDA , which stands for earnings before interest, taxes, depreciation and amortization. (Jim Cramer's Charitable Trust is long HAL. 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.
Various Halliburton equipment being stored at the equipment yard in Alvarado, Texas.
Cooper Neill | Reuters | 2022-10-25T20:35:30Z | www.cnbc.com | Halliburton's earnings beat points to more upside for key energy stock | https://www.cnbc.com/2022/10/25/halliburtons-earnings-beat-points-to-more-upside-for-key-energy-stock.html | https://www.cnbc.com/2022/10/25/halliburtons-earnings-beat-points-to-more-upside-for-key-energy-stock.html |
Vinod Khosla, co-founder and owner of Khosla Ventures LLC, during an interview on an episode of Bloomberg Wealth with David Rubenstein in Menlo Park, California, US, on Wednesday, May 11, 2022. Khosla, whose investments in US technology made him a billionaire, predicts the country will soon be at a "techno-economic war" with China lasting two decades.
The race to nuclear fusion power
Powering the Future | 2022-10-25T21:05:58Z | www.cnbc.com | Vinod Khosla: Focusing on 2030 climate targets wrong approach | https://www.cnbc.com/2022/10/25/vinod-khosla-focusing-on-2030-climate-targets-wrong-approach.html | https://www.cnbc.com/2022/10/25/vinod-khosla-focusing-on-2030-climate-targets-wrong-approach.html |
(AEO): "American Eagle is trying to make a comeback. It is very, very difficult."
(PYPL): "PayPal did very well today. They are already on the road to redemption."
(MVIS): "It's a $3 stock. It's a dice roll. It could go down $3. Stocks stop at zero. It is losing a lot of money. So therefore, it's not my cup of tea."
(VZ): "Verizon's got that big [annual dividend] yield. But it looks like AT&T
has finally passed them. And I am concerned they [Verizon] are going to have to spend a lot more to get back in competition with AT&T. So right now, I cannot recommend the stock of Verizon."
(SBNY): "I think the stock is probably incorrectly valued. But it does not have a big [annual dividend] yield. Most of the bank stocks have a good yield and are levered to the yield curve [in the bond market], so to speak. ... It's not going to react as well as some of the traditional banks." | 2022-10-25T23:38:05Z | www.cnbc.com | Cramer's lightning round includes a fintech 'on the road to redemption' | https://www.cnbc.com/2022/10/25/cramers-lightning-round-includes-a-fintech-on-the-road-to-redemption.html | https://www.cnbc.com/2022/10/25/cramers-lightning-round-includes-a-fintech-on-the-road-to-redemption.html |
Fetterman, the state's lieutenant governor, in his opening statement said that if Oz "is on TV, he's lying," calling it "the Oz rule." The Democrat is recovering from a stroke he suffered in May and used closed-captioning during the debate.
The hourlong debate in Harrisburg, Pennsylvania, comes as Oz, the celebrity doctor endorsed by Trump, has closed his polling deficit with Fetterman in the final weeks of the race. | 2022-10-26T01:09:29Z | www.cnbc.com | Oz-Fetterman debate: GOP Trump pick, Democrat face off in PA Senate race | https://www.cnbc.com/2022/10/25/oz-fetterman-debate-gop-trump-pick-democrat-face-off-in-pa-senate-race.html | https://www.cnbc.com/2022/10/25/oz-fetterman-debate-gop-trump-pick-democrat-face-off-in-pa-senate-race.html |
Alphabet (GOOGL) reported weaker-than-anticipated third-quarter results Tuesday evening on the back of a strong U.S. dollar and a slowdown in advertising spending. The stock sank after hours. But we think Club members should wait until the dust settles before taking any action. Total revenue of $69.1 billion represented a year-over-year increase of about 6%, but missed analysts' estimates of $70.58 billion, according to Refinitiv. The strong dollar was a 5-percentage point headwind to revenue growth, meaning revenues increased 11% on a constant-currency basis, the company said. Adjusted earnings-per-share fell by more than 24% year-over-year, to $1.06 a share, well below the Wall Street consensus estimate of $1.25 a share, Refinitiv data showed. Bottom line This was a poor set of quarterly results from Alphabet, as the strong U.S. dollar and a pullback in some advertising spending resulted in one of the slowest revenue-growth rates the company has seen in years. Even Google Search, the greatest advertising platform in the world, was not immune to some macroeconomic pressures. Although Alphabet can't control how much advertisers are willing to spend, one piece of good news is management's commitment to managing expenses by driving efficiencies and moderating new headcount in 2023. This should slow the degradation of margins in this tough economic environment. Still, what management does to protect earnings won't help with the slowdown Alphabet is seeing in its business. What this likely means is that the tech giant will go through another round of downward earnings- and price target revisions over the next few days, weighing on the stock — a clear indication that investors should hold off buying up any further shares here. Alphabet's stock was down about 6.5% in after hours trading to around $97.60 a share. We lowered our price target for the Google parent to $130 a share from $160. But that still represents 33% upside. Revenue breakdown Google Advertising revenue increased 2.5% year-over-year, to $54.48 billion, missing the consensus estimate of $56.59 billion. Broadly speaking, revenue growth slowed due to difficult year-over-year comparables, as well as an additional headwind from a pullback in advertising spending. Google Search & Other revenue rose 4%, to $39.54 billion, below the $40.93 billion forecasted by analysts, driven by a solid performance in travel and retail. Tough comparables annually weighed on the growth rate, but management admitted there was a pullback in spend by some advertisers in certain segments and search ads. Financial Services is one area that saw a decline, most notably in the insurance, loan, mortgage, and crypto subcategories. Given the sharp rise in mortgage rates and the spectacular decline in crypto, this is to be understood. Still, we see no reason to doubt the resilience of Google Search due to its strong measurability and high return on investment. YouTube Ads revenue unexpectedly fell about 2%, to $7.07 billion, a big miss versus the $7.42 billion predicted by analysts. Google Network revenue dipped 4.6%, to $7.87 billion, missing the consensus estimate of $8.23 billion. Both businesses experienced a greater pullback in spend by some advertisers compared to the second quarter. Google Other revenue increased 2% year-over-year, to $6.87 billion, beating analysts' forecasts of $6.72 billion. Google Cloud revenue increased 38% year-over-year, to $6.9 billion, ahead of a $6.69 billion consensus estimate. In Other Bets , which represents some of Alphabet's "moonshot" projects like the autonomous driving company Waymo, revenue increased by $27 million year-over-year, to $209 million, roughly in in line with analysts' estimates of $208 million. P & L breakdown As for profitability, Alphabet reported an operating profit of $17.135 billion in the third quarter, well behind analysts' expectations for $19.647 billion. Google Services made $19.78 billion, compared with the consensus estimate of $23.27 billion, squeezing the operating margin to 32% from 40% a year ago. Google Cloud lost $699 million, a beat versus estimates of a $732 million loss and comparable to a $644 million loss a year ago (on lower revenues). Other Bets saw a $1.61 billion loss, steeper than the $1.55 billion loss predicted by analysts and the $1.29 billion loss incurred last year. Other results Traffic Acquisition Costs (TAC), which is what Alphabet pays other companies to direct traffic to its website, were $11.83 billion in the third quarter, below the $12.38 billion consensus estimate Operating Cash Flow was $23.35 billion, missing expectations of $24.54 billion. Free Cash Flow came in at $16.077 billion, below the $18.82 billion predicted by analysts. Alphabet spent $15.4 billion on share repurchases in the third quarter. One way companies can protect earnings in a growth slowdown is by moderating capital expenditures (capex). We saw capex slow slightly in third quarter, coming in around $7.28 billion, below estimates of $7.62 billion. But Alphabet's headcount continued to grow, increasing to 186,799 at the end of September from 174,014 at the end of June. More than 2,600 of the additions were related to Alphabet's acquisition of cybersecurity firm Mandiant. Outlook comments Alphabet expects an even larger headwind from foreign exchange in the fourth quarter due to the strengthening U.S. dollar. Tough comparables will continue to weigh on the year-over-year rates of advertising revenues. A decline in user engagement and gaming from the elevated Covid-19 pandemic levels will continue to be a headwind to advertising revenue, with lower revenues from app promo spend on YouTube, Network, and Play ads in Search. Management remains excited about the long-term prospects of Google Cloud and will continue to invest in the business despite current losses. Fourth-quarter headcount additions are expected to slow to less than half the 12,765 added in the third quarter. Management's actions to slow the pace of hiring should be more apparent next year. (Jim Cramer's Charitable Trust is long GOOGL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
A woman passes the logo from the web search engine provider Google during the digital society festival 're:publica', at the Arena Berlin in Berlin, Germany June 9, 2022. | 2022-10-26T01:09:35Z | www.cnbc.com | We lowered our price target for Alphabet amid poor Q3 results | https://www.cnbc.com/2022/10/25/we-lowered-our-price-target-for-alphabet-amid-poor-q3-results-.html | https://www.cnbc.com/2022/10/25/we-lowered-our-price-target-for-alphabet-amid-poor-q3-results-.html |
Semiconductor and growth stocks have tanked this year, bonds are underwater and even the S & P 500 is in a bear market. It's a challenging picture for many portfolios. So how should investors nurse such steep losses? Speaking to CNBC " Pro Talks ," Foord Asset Management's Brian Arcese said investors should sell any underperforming stock as soon as they realize they have made a "mistake" in their portfolio. "You have to look at each individual stock on its own," said Arcese, who manages two funds overseeing more than $1.6 billion in assets. "If you don't think the business model of some of the meme stocks, like a GameStop or an AMC , is sustainable, then regardless of what happens in the near to medium term, you're better off exiting and buying a company you believe in." Many investors hold on to loss-making positions taking on "emotional pain" in the process, according to the portfolio manager. "I think it's more behavioral than anything else." Investors also "fear" losing out on the rebound rather than stepping back and re-evaluating the companies they own, he added. Arcese said he would consider holding on to an underperforming stock if the company made changes to its executive team or were willing to restructure and turn the business around. "But if nothing has really changed, then it's very difficult to get full conviction in that [stock]," he added. Stock markets in 2022 have been unkind to investors of all stripes, be it hedge funds, billionaire family offices, or meme stock traders. More than 85% of hedge fund and billionaire investors, on average, have lost 18% this year, according to CNBC Pro's analysis of data on 271 funds from Investing.com. As seen in the table below, 232 funds lost value this year, with 11 funds down by more than 50%. Kora Management and Spruce House Investment Management have lost more than three-quarters of their assets by value, with the latter taking on a third of those losses in the past month. "The best investors in the world probably are right 60-70% of the time," Arcese told CNBC, speaking from Singapore. "Which means that everyone is, at least a third of the time, investing in a company that doesn't work for whatever reason." Much of the pain can be avoided, according to Arcese, if investors bought only "quality" companies with great management teams offering good returns and solid fundamentals. Stock picks The fund manager named three stocks that will "will work, kind of, in any type of economic environment" — UnitedHealth Group , Air Products , and Freeport McMoRan . Shares of all three companies are likely to be impacted in a recession, admits Arcese, but they are likely to outperform "deep cyclicals" such as semiconductors and the broader market. UnitedHealth, a U.S.-headquartered health care and insurance company, has a buy-rating from 16 out of 19 analysts covering the stock since Oct. 14. The median price target of analysts surveyed by FactSet is at $597.5, indicating 10.3% upside potential from current levels. Air Products, an industrial chemicals company, is an inflation hedge and an "incredibly defensive company," according to Arcese. "They've grown their dividend for 40 consecutive years. They have contracts with inflation clauses with their customers that are 15 and 20 years long," he added. Meanwhile, Freeport McMoRan, a copper mining giant based in Arizona, is a "low-cost" producer of a commodity the world is running short of, according to the fund manager. "If you believe in energy transition, in green energy, the world doesn't have enough copper to get us there," he said. Six of 12 analysts covering the stock have rated FCX as a "buy" since its third-quarter results. Shares of the company have fallen by 21% year-to-date, chiefly tracking the copper prices. | 2022-10-26T01:09:41Z | www.cnbc.com | Fund manager names 3 recession-proof stocks and reveals how to rescue portfolio | https://www.cnbc.com/2022/10/26/fund-manager-names-3-recession-proof-stocks-and-reveals-how-to-rescue-portfolio.html | https://www.cnbc.com/2022/10/26/fund-manager-names-3-recession-proof-stocks-and-reveals-how-to-rescue-portfolio.html |
Microsoft (MSFT) reported a top- and bottom-line beat in its fiscal first quarter of 2023 after the closing bell Tuesday. Despite strong headline results, shares fell roughly 6.5% in extended trading on lighter Azure cloud growth and weaker forward guidance. We think it best to wait a few days for the sellers to exhaust themselves before deciding on what level may be appropriate to buy more shares in a company we like long-term. Revenue of $50.12 billion rose 16% year-over-year on a constant currency basis and was a head of the $49.61 billion consensus estimate. Gross margin of 69% was slightly below the 69.7% expectation. However, operating margin of 43% was in line with expectations. Per-share earnings of $2.35, a decrease of 7% year over year, outpaced estimates of $2.30 per share. Note: Constant currency growth rates, which is what we will cite in this report, help strip out fluctuations in foreign currency, namely a strong U.S. dollar, to provide a clearer financial picture. Bottom line This was not the quarter we were hoping to see from Microsoft. Along with poor results from fellow Club holding Alphabet (GOOGL), Nasdaq futures were sharply lower, which will likely take some of the steam out of the market's recent rally when Wall Street opens Wednesday. Microsoft shares dropped about 6.5% to $234 in after hours trading. While Microsoft is clearly a crucial backbone of global productivity, the sheer size of its business means that it's becoming less able to buck macroeconomic dynamics. We saw that with this release. In addition to weakness in the consumer personal computer market, business customers are taking a closer look at their own budgets leading to slightly lower than expected result at Azure, where profit margins also took a hit on higher energy costs, and a decline in advertising spend. However, CEO Satya Nadella said on the call that "moving to the cloud is the best way for organizations to do more with less today. It helps them align their spend with demand and mitigate risk around increasing energy costs and supply chain constraints." As a result, while the platform is being hit due to a Federal Reserve-induced economic slowdown — though to be clear, 42% constant currency for a business this size is incredibly impressive — we fully expect growth to continue in the near, mid and long-term. Similar to what we noted in our Alphabet earnings commentary, Microsoft's second quarter guidance will likely lead to downward earnings and price target revisions from analysts. Given the tough environment — and despite our longer-term positive view — we are reducing our Microsoft price target to $300 per share from $375. But that still reflects 28% upside. Companywide highlights Productivity and Business Processes revenue in the fiscal first-quarter of $16.47 billion, up 15% year over year in constant currency, was better than the $16.13 billion expected while operating income of $8.32 billion, a gain of 19%, exceeded estimates of $7.88 billion. Within the segment, Office Commercial Products and Cloud Services revenue increased 13% year over year in constant currency with Office 365 commercial seat growth advancing 14% annually. Office Consumer Products and Cloud Services revenue grew 11% year over year in constant currency and the number of Microsoft 365 consumer subscribers increased by roughly 1.6 million quarter over quarter to 61.3 million, and acceleration from the 1.3 million sequential additions seen in the prior quarter. Dynamics Products and Cloud Services revenue grew 22% year over year in constant currency. LinkedIn saw its revenue increase 21% year over year constant currency with sessions up 24% as the platform once again realized record engagement. Intelligent Cloud revenue of $20.33 billion, a 26% year over year increase, was a bit short of estimates of $20.41 billion. However, despite the revenue miss, operating income of $8.98 billion, up 25% year over year, was better than expectations of $8.85 billion. Operating expenses here were up 28% versus the year-ago period as the company increased investments in Azure and Nuance, a previously acquired conversational AI company. As we've repeatedly noted, the single most important line item in this segment, and perhaps the entire company, is revenue growth for Azure and other cloud services. Investors were hoping to see a growth rate in the high 30s percent range with currency factored in or about 43% in constant currency. While we got close on a constant currency basis, with Microsoft reporting 42% annual growth, the currency headwind may have been a bit greater than expected as growth came in at 35% when factoring in the currency dynamic. On the call, management did note that Azure growth was roughly one percentage point below their own expectations with the miss "driven by the continued moderation in Azure consumption growth [Microsoft] helped customers optimize current workloads while they prioritize new workloads" More Personal Computing revenue was $13.33 billion, a rise of 3% year over year and ahead of estimates of about $13.16 billion, while operating income of $4.22 billion, down 9% year over year, came up short of estimates of $4.4 billion. Windows OEM (original equipment manufacturer) revenue fell 15% year over year, hit by weakening PC demand that we have become all too familiar with. Windows Commercial Products and Cloud Services revenue grew 15% year over year on the back of Microsoft 365 demand. In Gaming , overall revenue increased 4% in constant currency. Xbox Content and Services revenue ticked up 1% in constant currency, while Xbox hardware sales jumped 19% in constant currency. Search and News Advertising revenue, excluding traffic acquisition costs (TAC), increased 21% year over year in constant currency. Aiding performance was an increase in Search volumes as Microsoft's Edge browser once again gained market share during the quarter. Guidance As always, management provided its outlook for the next quarter during the conference call. Segment revenue guidance was as follows for fiscal Q2. Note: The following does not include any impact from the pending acquisition of Activision Blizzard (ATVI). Productivity and Business Processes revenue was guided to $16.6 billion to $16.9 billion, below estimates of $17.11 billion. Intelligent Cloud revenue was guided to $21.25 billion to $21.55 billion, representing a miss versus the consensus estimates of $21.87 billion. Management expects Azure revenue growth to be lower sequentially by roughly five percentage points on a constant currency basis. More Personal Computing was guided to $14.5 billion to $14.9 billion, well below estimates of $16.83 billion. Adding that all up, we get a total revenue guide of $52.35 billion to $53.35 billion, which even at the high end was below estimates of $56.22 billion. In addition to the quarterly guidance, management said they continue to expect double-digit revenue and operating income growth for its full fiscal year, driven by 29% constant currency growth in the commercial business. Though we didn't get anything more specific and double-digit can mean many things, we take it to be at least in line with expectation coming into the print for 10.2% revenue growth and 10.9% operating income growth for the full fiscal year. Capital allocation, cash flow Microsoft returned $9.7 billion to shareholders in the quarter via dividends and buybacks , an 11% annual decrease, with $4.6 billion coming via share repurchases and $5.1 billion coming in the form of dividends. Quarterly free cash flow of $16.9 billion, down 10% year over year, came in below expectations of $17.51 billion, while operating cash flow of $23.2 billion, down 5%, missed estimates of $24.65 billion. Notably, if adjusted for what the company called "a tax payment related to the transfer of intangible properties" in its first quarter of fiscal 2022, free cash flow was essentially unchanged versus the year ago period and operating cash flow actually increase 2% due to strong cloud billings and collections. Despite coming up a bit short versus estimates, Microsoft is still generating a ton of cash. Speaking to the quality of Microsoft's earnings, that free cash flow figure was nearly equivalent to the $17.6 billion Microsoft reported as net income while operating cash flow was nicely above. Capital expenditures (capex), including assets acquired under finance leases, were $6.6 billion, a tad more than the $6.5 billion expected but acceptable in our view as the expenditures are to support growth in cloud offerings. (Jim Cramer's Charitable Trust is long MSFT and GOOGL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. | 2022-10-26T01:39:57Z | www.cnbc.com | Microsoft's drop on a weaker guide doesn't reflect the long-term potential of the stock | https://www.cnbc.com/2022/10/25/microsofts-drop-on-a-weaker-guide-doesnt-reflect-the-long-term-potential-of-the-stock.html | https://www.cnbc.com/2022/10/25/microsofts-drop-on-a-weaker-guide-doesnt-reflect-the-long-term-potential-of-the-stock.html |
We are seeing a decline in U.S. consumer confidence due to inflationary pressures and concerns about the economic outlook.
According to the latest survey data from The Conference Board, U.S. consumer confidence fell to 102.5 in October from 107.8 in September. This marked the first decline in nearly three months.
Steve Odland, CEO of The Conference Board
"People are feeling worse this month than they did over the past couple of months about their situation. It ties directly to how they're feeling about their job security, and how they're feeling about inflation."
And many retail companies, in their latest earnings season, said they have noticed shoppers spending less due to price pressures.
For example, consumer goods giant Procter & Gamble has been raising the prices of its products to ease cost pressures, but this strategy has already had an impact on consumer shopping behavior. In the past two fiscal quarters, P&G's sales have shrunk.
In addition, home appliance maker Whirlpool's third-quarter sales and profits fell short of Wall Street's expectations, while the company also cut its full-year profit guidance. Whirlpool's CEO said: consumer demand has fallen sharply due to an increasingly uncertain macroeconomic outlook, coupled with high inflation.
Economists expect U.S. personal consumption expenditures, adjusted for inflation, to grow at an annualized rate of perhaps just 1% in the third quarter, the lowest rate of growth since the new crown epidemic in early 2020 and half the rate of growth in the previous quarter.
Inflation-adjusted personal consumption is expected to have grown by just 1% annualized in the third quarter, the weakest pace since the first quarter of the pandemic according to economists' expectation.
This trend is known as "demand destruction". Economists also expect that by the end of the year, American consumer spending may be in the doldrums, which is not good news for the end of the holiday season.
"So they're feeling nervous, you don't want nervous consumers to be going into the holiday season, because this is the biggest component of retail sales for And as we all know, this is a you know, the biggest component of our GDP."
Not only in the United States, but also in Europe, consumers are tightening their wallets. According to a new survey by market research firm IRI, in Europe, 58% of respondents are spending less on necessities, 51% are taking out less, 47% are eating out less, and another 35% are using personal savings and loans to pay their bills.
This IRI report covers 14 major global markets, including Europe, the US and Asia Pacific. The survey found that consumers in many parts of the world are returning to the "frugal shopping" that was common in the 1970s and 1980s. Examples include bringing their own lunches, buying discounted or even expired foods, and going to multiple supermarkets to compare prices and buy the cheapest items.
Some marketers have analyzed the price wars that have emerged between companies to ensure sales, which may be inevitable. | 2022-10-26T05:43:36Z | www.cnbc.com | CCTV Script 26/10/22 | https://www.cnbc.com/2022/10/26/cctv-script-26/10/22.html | https://www.cnbc.com/2022/10/26/cctv-script-26/10/22.html |
Apple will "comply" with European Union regulation that requires electronic devices to be equipped with USB-C charging, said Greg Joswiak, Apple's senior vice president of worldwide marketing. That will mean Apple's iPhones, which currently use its proprietary Lightning charging standard, will need to change to support USB-C.
will have to comply with a European Union law that mandates electronic devices have a common charging standard — known as USB-C — the company's marketing chief confirmed. | 2022-10-26T07:45:26Z | www.cnbc.com | Apple confirms iPhone to get USB-C charging to comply with EU law | https://www.cnbc.com/2022/10/26/apple-confirms-iphone-to-get-usb-c-charging-to-comply-with-eu-law.html | https://www.cnbc.com/2022/10/26/apple-confirms-iphone-to-get-usb-c-charging-to-comply-with-eu-law.html |
A Boeing 737 MAX 10 airliner pauses while taxiing on the flight line before its first flight at Renton Municipal Airport on June 18, 2021 in Renton, Washington.
reported a $3.3 billion quarterly loss Wednesday as charges in its defense unit countered strides in its commercial aircraft business.
The manufacturer, however, generated nearly $3 billion in free cash flow in the three months that ended Sept. 30, up from outflows of $507 million a year earlier.
Here's how Boeing performed compared with analysts' estimates complied by Refinitiv:
The company's shares were up about 1% in premarket trading.
A rebound in air travel has been a boon for commercial jet sales. Boeing's commercial unit's revenues rose 40% from a year ago to $6.26 billion. It delivered 112 planes in the third quarter, up from 85 a year earlier. Deliveries of its 787 Dreamliner resumed in August after a pause for much of the previous two years to address a series of manufacturing flaws.
Boeing executives will discuss results on a 10:30 a.m. ET call Wednesday with analysts, where the company will likely face questions about potential production increases of commercial jets and its latest timeline on certification of the smallest and largest models of its best-selling 737 Max. | 2022-10-26T11:49:16Z | www.cnbc.com | Boeing (BA) earnings Q3 2022 | https://www.cnbc.com/2022/10/26/boeing-ba-earnings-q3-2022.html | https://www.cnbc.com/2022/10/26/boeing-ba-earnings-q3-2022.html |
A person exits a Bed Bath & Beyond store in New York City, June 29, 2022.
said Wednesday that it has appointed interim Sue Gove to the position permanently.
Gove was named interim CEO this summer after the company's board pushed out former CEO Mark Tritton.
Gove, a member of Bed Bath's board, is the founder of a retail consulting and advisory firm, Excelsior Advisors. Before she became a consultant, she had several financial and strategic roles, including President and Chief Executive Officer of Golfsmith International Holdings, Inc. and Chief Operating Officer of Zale Corporation, according to the biography on Bed Bath's website | 2022-10-26T12:19:39Z | www.cnbc.com | Bed Bath & Beyond appoints interim CEO Sue Gove to the position permanently | https://www.cnbc.com/2022/10/26/bed-bath-beyond-appoints-interim-ceo-sue-gove-to-the-position-permanently.html | https://www.cnbc.com/2022/10/26/bed-bath-beyond-appoints-interim-ceo-sue-gove-to-the-position-permanently.html |
52% of voters want more cypto regulation, new poll finds
According to the national survey commissioned by the Crypto Council for Innovation, an industry group backed by companies including Coinbase
, Paradigm, Fidelity Digital Assets and Block
, 52% of respondents said they wanted more regulation in the space. Only 7% said they'd want to see less regulation. | 2022-10-26T13:51:36Z | www.cnbc.com | Voters want to see more crypto regulation, industry poll finds | https://www.cnbc.com/2022/10/26/voters-want-to-see-more-crypto-regulation-industry-poll-finds.html | https://www.cnbc.com/2022/10/26/voters-want-to-see-more-crypto-regulation-industry-poll-finds.html |
The debate put a spotlight on Fetterman's continued struggles after suffering a life-threatening stroke in May that took him off the campaign trail for months.
Oz received criticism for saying he wants decisions on abortion left to "women, doctors, [and] local political leaders."
Democratic U.S. Senate candidate John Fetterman speaks during a rally in Erie, Pennsylvania, August 12, 2022.
On abortion, a major issue in the midterms following a Supreme Court ruling overturning Roe v. Wade, Oz said he wants decisions left to "women, doctors, [and] local political leaders." | 2022-10-26T14:52:26Z | www.cnbc.com | Pennsylvania Senate: Fetterman raises $1 million after Oz debate | https://www.cnbc.com/2022/10/26/pennsylvania-senate-fetterman-raises-1-million-after-oz-debate.html | https://www.cnbc.com/2022/10/26/pennsylvania-senate-fetterman-raises-1-million-after-oz-debate.html |
Amid the recent economic uncertainty, investors have been prizing companies with an established record, and that hasn't been great news for the flood of stocks that debuted before the market turned sour. Weber , which went public in August 2021 and is trading at half its offering price, is the latest example of a recent IPO to attract a bid to go private. But many other stocks could end up in a similar situation, according to BMO Capital Markets analyst Simeon Siegel. He identified Traeger, a maker of wood pellet grills, as a stock in his coverage universe that fits the bill. Shares closed Tuesday up 13% in the wake of the Weber deal. "Clearly, this is a trend worth gaining comfort on when recognizing that there remain a host of other recent IPOs sitting far below their deal price with still heavy sponsor ownership," Siegal wrote in a research note. The poor performance of last year's offerings has contributed to the slowdown in the IPO pipeline this year. U.S.-listed companies raised $4.8 billion through IPOs in the first half of this year, according to Dealogic and EY. Compare that with 2021 when more than $155.8 billion was raised. To find other companies that could be candidates to go private, CNBC Pro screened for companies that debuted in 2021 and are trading down 50% or more since their first day of trading. Then, in order to find stocks with large insider or sponsor ownership, we sorted for names that have floating shares as a percentage of total shares of 45% or less. And since there is no guarantee that a company will strike such a deal, we also looked for quality companies that are covered by at least six analysts and have buy rating from at least 55% of them and upside to the average price target of at least 40% and a market cap of at least $400 million. Recent IPOs ducking for the door First, to understand why we selected these criteria, let's look at the recent deals. The year began with Durational Capital Management taking mattress maker Casper Sleep private. Earlier this month, Poshmark agreed to be bought by South Korean internet giant Naver for $1.2 billion , and Mark Wahlberg-backed fitness chain F45 Training Holdings attracted a bid from Kennedy Lewis Investment, its third largest investor. These deals have the potential for big gains. Kennedy Lewis' $4 per share cash offer was an 83% premium to F45's closing price ahead of the deal announcement, even though it was far below the stock's $16 IPO price. Now, there's Weber's suitor BDT Capital Partners — its largest shareholder with a 48% stake. At present, the grill maker's board is evaluating the $6.25 a share bid, and shares have popped above the offer price. The stock closed Tuesday at $6.56, up 30%. Prior to BDT's interest, Weber shares had languished since its August 2021 debut. Even with the lift from the deal news, shares are only trading at less than half its $14 IPO price. The company, which is known for its dome-shaped grills, had been a pandemic winner as consumers hunkered down at home and fired up the barbecue. But sales have been struggling as the economy opened up again. In July, CEO Chris Scherzinger stepped down as the company withdrew its 2022 forecast and suspended its dividend. Traeger, which Siegel flagged, checks many of the same boxes — and it too has suffered from falling demand for grills. "Looking across our coverage, COOK has a relatively low non-insider market cap (i.e., pseudo-float, assuming a current holder would be interested), heavy insider ownership, respected niche within their product category, and a depressed share price, trading 81% below its IPO price," Siegel wrote. "We have to assume COOK insiders are running the numbers, which would make sense to us," he said. Private equity company AEA Investors had a 28.4% stake in the company, and CEO Jeremy Andrus owns an 11% stake, according to FactSet. Pandemic booms and busts Some of the names on CNBC's screen also have felt the same booms and busts that hit Weber and Traeger during the pandemic. Pool manufacturer Latham Group saw huge demand during the pandemic as people looked for ways to entertain themselves at home. But in its latest earnings report in August, the company slashed its sales forecast for fiscal 2022. Pamplona Capital Management owns a 44.3% stake in Latham, while Wynnchurch Capital holds another 12.8%, according to FactSet. CEO Scott Rajeski holds a 3.4% stake, it said. Energy storage company Fluence Energy was recently reiterated at overweight by JPMorgan. The company, which was formed as part of a joint venture by AES and Siemens , is seen as a way to play the growing demand for battery storage technology. Siemens still owns more than half the company, with a 51.3% stake, according to FactSet. But the company has installed new leadership in recent months, naming both a new CEO and CFO. In August, Canaccord Genuity analyst George Gianarikas said he expected CEO Julian Nebreda, a former AES executive, and CFO Manavendra Sial to focus on improving the company's profitability and its priorities. Sial had previously served as CFO at SunPower . Ad tech company Integral Ad Science recently said it will be working with Netflix on the streaming service's closely watched ad-supported subscription plan . It's a high profile gig for IAS, which verifies that ads are viewable by potential customers and shown in a way that's "brand-safe" — in other words not adjacent to material that advertisers might find problematic. Vista Equity Partners owns a 60.6% stake in IAS, FactSet said. The private equity firm has announced three take-private deals so far this year. The latest was a $4.6 billion leveraged buyout of cybersecurity provider KnowBe4 , which was announced earlier this month. In August, Vista agreed to buy tax-software firm Avalara for $8.4 billion , including debt, and in January it joined with an affiliate of Elliott Management to buy cloud-computing company Citrix Systems for $16.5 billion . A number of other tech stocks also made the cut, including online data provider SimilarWeb and customer engagement software maker Braze . UserTesting , which debuted the same day as Braze, also ranked on the list. The company has developed software to assess customer experience. —CNBC's Michael Bloom contributed to this report. | 2022-10-26T16:23:28Z | www.cnbc.com | Another beaten down recent IPO may go private. Here's a look at who might be next | https://www.cnbc.com/2022/10/26/another-beaten-down-recent-ipo-may-go-private-heres-a-look-at-who-might-be-next-.html | https://www.cnbc.com/2022/10/26/another-beaten-down-recent-ipo-may-go-private-heres-a-look-at-who-might-be-next-.html |
As yields on money market mutual funds march toward their highest rates in more than a decade, some investors are pouring into the asset class. One fixture of overall money market funds is seeing the highest growth in decades this year – retail money market fund inflows hit $122.1 billion in the week ending Oct. 19, the most since 1992, according to data from Refinitiv Lipper. Overall, the market is seeing outflows driven by institutional investors, with $189.5 billion being withdrawn from U.S. money market funds through Oct. 19. That's the largest net outflow for any full year since 2010, according to Refinitiv Lipper. The retail funds, however, are attractive because they've seen a huge increase in yields as the Federal Reserve raises interest rates to cool off high inflation. At the start of the year, such accounts were yielding 0.02% on average, according to Crane Data, a firm that tracks money markets. Now, the average yield is 2.8% and moving higher, notching levels that haven't been seen since 2007, ahead of the Great Financial Crisis. "No doubt they will be 3% within two weeks, on average," said Peter Crane, founder of the firm, adding that they could be pushing 4% on average by the end of the year, with little market risk. "Anyone buying 2-year Treasurys at 4% a month ago is probably going to be sorry," he said. Why retail investors are buying money market mutual funds A volatile market that's led to negative returns year to date for both stocks and bonds has sent many investors looking for safety. The S & P 500 is still in a bear market, down nearly 19% in 2022 At the same time, bond performance, which generally offsets market volatility, hasn't been much better. In recent weeks yields have climbed enough to be attractive. Right now, the yield on the 2-year U.S. Treasury has topped 4.4%, up from less than 1% at the start of the year. Bond yields move inversely to prices. Those performances make assets with any gains look much more attractive. Money market mutual funds offer investors safety, making them a solid place to park cash. "Over the past couple of months, we've started to see certainly institutions but also retail investors parking money in money markets to avoid the volatility in the equity and bond market," said Mark Hackett, chief of investment research at Nationwide's investment management group, adding that he usually views such data as a barometer for fear in equities and bonds. "That was absolutely justified for much of this year." Now, however, as short-term bond fund yields rise, it makes sense for many investors to go into short-duration bonds, he added. In addition, though market losses can be hard for investors to stomach, many stocks are now trading at a huge discount, which means it could be a good time to buy more risk assets. When they make sense for investors Most financial advisors only recommend holding cash in money market mutual funds for certain kinds of retail investors – those with very low risk tolerances, or who need to keep money on hand for a short-term use. "If you're incredibly risk sensitive, meaning you can't lose money either emotionally or financially, money markets make a lot of sense," said Hackett. This can make sense for people on fixed incomes, such as retirees, he said. Liquidity is a benefit of the funds as well. Having some money in a money market fund also makes sense if you're anticipating a large purchase, such as a house, car or paying for a child's college education in the near term. "It's not an investment, it's just a holding pattern," said Steve Azoury, founder of Azoury Financial. It's also a good place to store your emergency fund. Financial advisors typically recommend having three to six months of expenses in cash on hand. "It's going to pay a higher rate than a checking or savings account," said Azoury. He added that investors should also note that not all money market mutual funds are insured by the FDIC, unlike checking and savings accounts or money market deposit accounts. Consider fees Of course, though yields on money market mutual funds are on the upswing, they still aren't keeping pace with inflation, which is up 8.2% from a year ago, according to the September consumer price index report . Still, Crane points out that inflation is eating into returns on all investments as it erodes purchasing power. A more troubling hit to the higher returns seen on money market funds is fees, which are increasing as yields climb. In low-yield environments, such as the years following the Great Financial Crisis and the immediate aftermath of the coronavirus pandemic, asset managers waived fees on money market funds so that investors wouldn't have negative yields, even if profits and revenues were lower for the managers. From 2006 through 2021, advisors have waived nearly $58 billion in money market fund expenses, according to a March report from the Investment Company Institute . But as yields on such funds tick up, fees are coming back and can range from 0.1% to more than 1%. Those fees add up to billions of dollars for money managers from investors. In the quarter ending Sept. 30, Charles Schwab reported $132 million in revenue from money market funds. A year earlier, they waived $83 million in fees, reporting only $29 million in revenue from the funds. | 2022-10-26T16:54:21Z | www.cnbc.com | Investors looking for safety are piling into some money market funds | https://www.cnbc.com/2022/10/26/investors-looking-for-safety-are-piling-into-some-money-market-funds.html | https://www.cnbc.com/2022/10/26/investors-looking-for-safety-are-piling-into-some-money-market-funds.html |
Amnon Shashua, president and chief executive officer of Mobileye Global Inc., and Patrick Gelsinger, chief executive officer of Intel Corp., outside the Nasdaq MarketSite during the company's IPO in New York, US, on Wednesday, Oct. 26, 2022.
shares popped more than 30% in their stock market debut on Wednesday after the maker of technology for self-driving cars was spun out of Intel
The IPO raised $861 million, and the move to list Mobileye on the Nasdaq is part of Intel's broader strategy to turn around its core semiconductor business, which has lagged behind rivals like AMD
in recent years. Intel said it would use some funds from the Mobileye listing to build more chip factories as it embarks on a capital-intensive process to become a foundry for other chipmakers.
Intel plans to cut thousands of jobs amid PC slowdown: Bloomberg | 2022-10-26T17:55:05Z | www.cnbc.com | Mobileye pops more than 30% in IPO after spinning out of Intel | https://www.cnbc.com/2022/10/26/mobileye-pops-more-than-30percent-in-ipo-after-spinning-out-of-intel.html | https://www.cnbc.com/2022/10/26/mobileye-pops-more-than-30percent-in-ipo-after-spinning-out-of-intel.html |
There have been few places for investors to hide this year, but this year's sell-off may have opened some buying opportunities in names that are undervalued relative to the market, and have solid balance sheets. The S & P 500 is down about 19% in 2022, while the Nasdaq has dropped about 29% in that time. All sectors in the broader market index are down this year, with the notable exception of energy, which is up 61.6%. Still, the current market backdrop could present an opportune moment for value stocks, which some market participants expect will continue to gain momentum, should the Federal Reserve start to slow their pace of interest rate increases. "For young people with cash, I think this is a great time to come in," Wharton Business School professor emeritus Jeremy Siegel said Tuesday on CNBC's " Squawk Box ." "The swing that we saw still has a way to go away from the tech, more towards dividend paying, more towards those value investments in 2023," he added. Given all of this, CNBC Pro searched for stocks in the S & P 1500 with a market cap of at least $1 billion, with at least 10 analysts covering the stock, that have the following qualities: Price-to-book value— a valuation metric that looks at a stock price relative to the book value of a company — of less than 3.83, or below the S & P 500 Total debt as a percentage of equity of 30% or less Buy ratings from 60%, or more, of analysts covering them Upside to average analyst price target of at least 20% Here are 10 names we found. Advanced Micro Devices has a price-to-book value of 1.7, with a total debt as a percentage of equity of 5.8%, according to FactSet data. What's more, the stock is expected to jump 51.9% from here. Stifel initiated coverage of Advanced Micro Devices last month with a buy rating, saying that the stock has continued to gain share in client computing and server markets, and have broadly priced in fears of a PC market slowdown. Salesforce has a price-to-book value of 2.7, with a total debt as a percentage of equity of just 23.8%. Nearly 80% analysts who cover Salesforce have a buy rating on the stock. Analysts also see the stock going up by about 31% on average. Goldman Sachs said in a note earlier this month that Salesforce has a more "constructive set up" as it transitions to a subscription business, and is poised for a strong recovery ahead given its record low churn rates the past several quarters. Knight-Swift Transportation has a price-to-book value of 1.2. It has a total debt as a percentage of equity of 25.8. Analysts expect more than 25% upside from here, according to consensus estimates. Other stocks included in this list include Arcus Biosciences , Essent Group and Exelixis . — CNBC's Michael Bloom contributed reporting. | 2022-10-26T17:55:42Z | www.cnbc.com | These companies are cheap, have strong balance sheets, and analysts love them | https://www.cnbc.com/2022/10/26/these-companies-are-cheap-have-strong-balance-sheets-and-analysts-love-them.html | https://www.cnbc.com/2022/10/26/these-companies-are-cheap-have-strong-balance-sheets-and-analysts-love-them.html |
Oil prices are a huge wild card for the global economy, and could be about to get much more volatile as Europe prepares to end seaborne imports from Russia in December. Since Russia invaded Ukraine last March, oil prices have traded in a wide range. International Brent crude spiked to about $140 per barrel as Russia launched its invasion in March and slid below $85 per barrel in September. On Wednesday, Brent crude futures were trading at about $95.89 per barrel . Analysts do not expect the world to face an oil shortage, but they do expect higher prices in 2023 as Europe cuts back on Russian oil and then imposes an embargo on Russian refined products early next year. "There are three big oil producers in the world, and two of them are Russia and Saudi Arabia," said Dan Yergin, vice chairman at S & P Global. "Depending what happens in December, we may have an even more difficult oil market, in which cooperation is going to be important." The European ban could be the next drama to hit the oil market, which has been tumultuous since the war in Ukraine forced a new order in global energy markets. Scrambling to fill the gaps Russia was Europe's chief supplier of energy. The U.S., one of the big three producers, and other countries have scrambled to send supplies of liquified natural gas and refined crude products to fill the gaps. The oil market faces the push-pull of less supply but also weaker demand. China's Covid lockdowns have affected demand, and fears of a global slowdown have kept producers cautious. U.S. oil production has increased, but it is still not at pre-pandemic highs. Producers have been reacting to the demands of Wall Street to keep expenses under control and give money back to shareholders. Barclays energy analyst Amarpreet Singh said the fact the U.S. producers are not pushing up their output in a bigger way could be one reason that OPEC+, which includes Russia, has said it is cutting back production by 2 million barrels a day . "Because U.S. producers are not responding, in a way, they used that to give them leeway to be more proactive," he said. In the past, OPEC+ has been concerned that U.S. production would ramp up in response to high prices and then add enough supply that it was a catalyst to drive prices lower. Events that could cause volatility Saudi Arabia is the de facto leader of OPEC, and its energy minister said the decision to produce less was necessary to guarantee the kingdom would have sufficient spare capacity if Russian sanctions lead to a major decline in oil supplies. Speaking Tuesday, Prince Abdulaziz bin Salman also took a swing at the U.S. for using millions of barrels a day from the Strategic Petroleum Reserve to prevent prices from rising sharply. Barclays' Singh said Europe's planned Dec. 5 cut-off of Russian crude is the big event on the horizon for energy markets, but there are other issues that could create volatility as well. "We've highlighted heightened turbulence ... because of the uncertainties around what happens with Russian supplies and what happens with Covid in China and what happens with the global economy that is facing the fastest pace of central bank rate hikes that we've seen in decades," he said. "These are all factors." Singh notes there could be a significant drop in Russian oil in coming months as European restrictions on imports of oil and refined products, like diesel, take hold. Already, he notes Russian crude and product supply has dropped to an average 7.5 million barrels a day in September, from 8.1 million barrels a day before it invaded Ukraine. Barclays expects about 1 million barrels of Russian oil to come off the market, but Singh said his estimate is low compared with others. He noted the International Energy Agency and the U.S. Energy Information Administration expect Russian oil supplies to drop by 1.5 million barrels a day and 1.6 million barrels, respectively. "If you look, so far Russia has been able to redirect supplies that would traditionally go to Europe or the U.S. relatively better than most projections from earlier this year," he said. He noted that China and India have increased their purchases of Russian oil, but so have other countries, like Turkey. Russia exported about 1.7 million barrels a day of oil to Europe and the U.K. in August, according to the IEA. In January, those imports totaled 2.6 million barrels a day. The U.K. has already eliminated Russian imports. "If we finally lose meaningful amounts of Russian crude oil that would be significant for the market," said John Kilduff, partner with Again Capital. "There's still a chance Europe can blink, depending on how bad things get. I don't think you can rule that out as a scenario." So far, there's no indication Europe will reverse course on the ban. Europe has managed to put gas into storage for the winter, but the weather will be a factor for the European Union, and there could be switching to oil if gas prices skyrocket again or supplies are short. "You have the feeling that nobody has their arms around the whole situation and even if the pressures in the gas market ease up and are not as bad this winter as they could be, the political pressures are very intense on governments," said Yergin. According to JP Morgan energy analysts, a key factor for the global oil price centers on how much tanker capacity Russia is able to commandeer. Russia is about 1 million barrels a day short of tanker capacity that can be used to ship its oil after the Dec .5, and the analysts note that starting that day any ship carrying Russian crude that is sold above a pre-determined price cap would be barred from European shipping and finance "Russia has made it clear that it will not comply with the US-led price cap and will try to legally find alternative buyers for its oil on vessels not requiring Western services," according to the JP Morgan analysts. But that leaves Russia short of tankers, and the analysts say it will take until 2024 for Russia able to find sufficient tanker capacity to deliver all of its crude. Russia is also short of about 2.5 million barrels a day of tanker capacity for refined products, and that shortfall is likely to continue until 2025. The analysts note that Russia could increasingly make ship-to-ship transfers, or use a "dark fleet" that Iran and Venezuela used to skirt bans on their oil. "Consequently, until 2024 we believe oil price will be strongly influenced by the availability of tankers that are willing to transport Russian oil rather than global supply-demand fundamentals, keeping oil price elevated. We hold our price view of $100/bbl in 4Q22 and $98/bbl in 2023," the analysts wrote. A higher floor for prices The relationship of the three biggest producers to the oil market has made the price outlook even more difficult to predict, but analysts agree there is a higher floor for prices than there had been. "$80 is the new $60," said Francisco Blanch, head of global commodities and derivatives research at Bank of America. Blanch commented on the price of Brent. West Texas Intermediate futures are trading about $8 a barrel lower than the global benchmark. Blanch said while the floor for oil prices is now higher, he still has a Brent forecast for $100 a barrel next year with a spike toward $110 at the middle of the year. "OPEC+ cut to keep oil over $80 a barrel. We also believed the government in the U.S. was going to put a floor under oil prices by refilling the SPR," said Blanch. "I'm not sure it's going to work or not. One thing is it's going to discourage people from hedging below $70 a barrel." Blanch said the energy crisis in Europe could push the U.S. to become more energy independent. "Russia's misstep with Europe opens the door for the U.S. to grow its international market share," he said. "Europe is going to buy more from the U.S. There's going to be a very large spread between European energy prices and U.S. energy prices." Singh expects Brent at $98 a barrel next year, but that could be too high if there is a recession that hits demand hard. "If demand is 1 million [barrels a day] below our forecast, there is $15 downside. If it is 2 million barrels below forecast, then it is $25 a barrel," he said. | 2022-10-26T18:25:21Z | www.cnbc.com | Oil volatility could get more intense as Europe's December deadline approaches | https://www.cnbc.com/2022/10/26/oil-volatility-could-get-more-intense-as-europes-december-deadline-approaches.html | https://www.cnbc.com/2022/10/26/oil-volatility-could-get-more-intense-as-europes-december-deadline-approaches.html |
The woman is the second in recent weeks to say she had an abortion after becoming pregnant with Walker's child. The first woman, who has a child with Walker, says he reimbursed her for the abortion he had at his urging.
U.S. Senate candidate and former football player Herschel Walker speaks at the University of Georgia during his campaign rally in Americus, Georgia, October 21, 2022.
Walker, who is running for Senate on an anti-abortion platform, has denied the earlier woman's allegations, which were reported by The Daily Beast and The New York Times. Walker denied the latest allegation at a campaign event earlier Wednesday, NBC News reported.
"We don't need people in the U.S. Senate who profess one thing and do another," the woman said.
The press conference arrived less than two weeks before the Nov. 8 midterm elections, when Walker hopes to unseat Georgia's incumbent Democratic Sen. Raphael Warnock. Polling averages show Walker and Warnock locked in a tight race in Georgia, a key swing state that could ultimately decide which party holds majority control of the Senate.
Walker has expressed support for banning abortion without exceptions, and recently said he has "always been for life." | 2022-10-26T19:26:31Z | www.cnbc.com | Herschel Walker: Woman makes new abortion claim | https://www.cnbc.com/2022/10/26/herschel-walker-woman-makes-new-abortion-claim.html | https://www.cnbc.com/2022/10/26/herschel-walker-woman-makes-new-abortion-claim.html |
‘Ugly times’ are pushing record annuity sales. Here's what you need to know before you buy
stock index firmly entered a bear market in June, and is still down nearly 19% in 2022 as of Wednesday afternoon. An investor holding U.S. bonds, which typically act as a ballast when stocks fall, has lost almost 16% in the past year.
Workers looking for guaranteed retirement income
The fancier the annuity, the more the underlying fees are. And a lot of people don't understand the limitations. It's important to know what you're buying.
Carolyn McClanahan
certified financial planner and founder of Life Planning Partners
But Baker cautioned that value proposition likely doesn't make sense for investors any more. It would effectively lock in big stock and bond losses, and then cap gains to the upside for the term of the insurance contract, he said. Investors can now get a return over 4% on safe-haven assets like shorter-term U.S. Treasury bonds (a 3-month
, 1-year
and 3-year
, for example) if they hold those bonds to maturity. | 2022-10-26T19:26:50Z | www.cnbc.com | ‘Ugly times’ are pushing record annuity sales. What buyers should know | https://www.cnbc.com/2022/10/26/ugly-times-are-pushing-record-annuity-sales-what-buyers-should-know.html | https://www.cnbc.com/2022/10/26/ugly-times-are-pushing-record-annuity-sales-what-buyers-should-know.html |
Companies are making climate pledges they don't have the capacity to keep, says Microsoft President Brad Smith
But the emissions measuring and tracking industries are still incredibly nascent and there is a general lack of clarity in the vocabulary used.
But while companies are setting goals they don't know exactly how they will deliver on, the pressure on companies to respond to climate change continues to increase.
Brad Smith, president of Microsoft Corp., speaks during a climate initiative event at the Microsoft Corp. campus in Redmond, Washington, U.S., on Thursday, Jan. 16, 2020.
Smith was on stage at the conference hosted by Breakthrough Energy, the climate innovation company launched by Bill Gates, who famously co-founded Microsoft
in 1975 and became extraordinarily wealthy from the tech company's success.
Smith likened the gap between good intentions and executable change to corporate pledges about diversity, which he's been looking at for the last couple of decades.
One problem is the inconsistency in nomenclature and a lack of general knowledge about the fundamentals of climate emissions tracking.
For example, Smith said it is a "constant effort" to educate people about the three categories of emissions. In particular, scope three emissions, which include all the activities and assets in a company's value chain, tend to be the largest category -- and the hardest to track.
Inside Google's sustainability journey, from its director of energy | 2022-10-26T19:56:54Z | www.cnbc.com | Companies lack capacity to keep climate pledges: Microsoft President | https://www.cnbc.com/2022/10/26/companies-lack-capacity-to-keep-climate-pledges-microsoft-president.html | https://www.cnbc.com/2022/10/26/companies-lack-capacity-to-keep-climate-pledges-microsoft-president.html |
Elon Musk arrives at the In America: An Anthology of Fashion themed Met Gala at the Metropolitan Museum of Art in New York City, New York, May 2, 2022.
and stave off a new court date, billionaire Elon Musk walked into the company's San Francisco office on Wednesday with what appeared to be a porcelain bathroom sink in his hands.
"Entering Twitter HQ – let that sink in!" the Tesla | 2022-10-26T19:57:00Z | www.cnbc.com | Elon Musk carried a sink into Twitter on Wednesday as deal nears close | https://www.cnbc.com/2022/10/26/elon-musk-carried-a-sink-into-twitter-on-wednesday-as-deal-nears-close.html | https://www.cnbc.com/2022/10/26/elon-musk-carried-a-sink-into-twitter-on-wednesday-as-deal-nears-close.html |
Sen. Sherrod Brown this week sent a letter to Fed Chairman Jerome Powell, expressing concern about the impact interest rate hikes could have on employment.
In the past, Powell has been generally dismissive when asked if political pressure factors into decision making.
Federal Reserve Chairman Jerome Powell faces more intense political questioning about the central bank's policy moves, this time from the other side of the aisle.
No stranger already to political pressure, the Fed chief this week found himself the focus of concern from Sen. Sherrod Brown. The Ohio Democrat dashed off a letter to Powell, warning about potential job losses from the Fed's rate hikes that it is using to combat inflation.
"It is your job to combat inflation, but at the same time, you must not lose sight of your responsibility to ensure that we have full employment," Brown wrote. He added that "potential job losses brought about by monetary over-tightening will only worsen these matters for the working class."
The letter comes with the Fed less than a week away from its two-day policy meeting that is widely expected to conclude Nov. 2 with a fourth consecutive 0.75 percentage point interest rate increase. That would take the central bank's benchmark funds rate to a range of 3.75%-4%, its highest level since early 2008 and represents the fastest pace of policy tightening since the early 1980s.
The last time the Fed raised interest rates, from 2016 to December 2018, Powell withstood withering criticism from former President Donald Trump, who on one occasion called the central bankers "boneheads" and seemed to compare Powell unfavorably with Chinese President Xi Jinping when he asked in a tweet, "Who is our bigger enemy?"
"Chair Powell has made it pretty clear that the necessary conditions for the Fed to achieve its full employment employment is low and stable inflation. Without low and stable inflation, there's no way to achieve full employment," said Mark Zandi, chief economist for Moody's Analytics. "He'll stick to his guns on this. I don't see this as having any material impact on decision-making at the Fed."
Treon: If the Fed were to let go of the 2% inflation target would be catastrophic in restoring its credibility
Traders have made peace with the three-quarter point hike next week. But they now see just a 36% chance for another such move at December's Federal Open Market Committee meeting, after earlier rating it a near-80% probability, according to CME Group data.
"The democratization of the Fed is the issue for the market, how much power the other members have vs. the chairman. It's difficult to know," said Quincy Krosby, chief equity strategist at LPL Financial. Regarding Brown's letter, Krosby said, "I don't think it's going to affect him. … It's not the pressure coming from the politicians, which is to be expected."
Sen. Elizabeth Warren, the ultra-progressive Massachusetts Democrat and former presidential contender, has called Powell dangerous and recently also warned about the impact rate hikes could have on employment. Also, Sen. Joe Manchin (D-W. Va.) last year criticized Powell for the Fed's flat-footed response to the early rise of inflation.
Jim Cramer says consumers are undeterred by higher prices in the reopening economy | 2022-10-26T19:57:24Z | www.cnbc.com | Powell again is facing political pressure as worries mount over the economy | https://www.cnbc.com/2022/10/26/powell-again-is-facing-political-pressure-as-worries-mount-over-the-economy.html | https://www.cnbc.com/2022/10/26/powell-again-is-facing-political-pressure-as-worries-mount-over-the-economy.html |
Rihanna teased her upcoming single “Lift Me Up” for the upcoming Marvel sequel "Black Panther: Wakanda Forever."
TOPSHOT - Singer/actress Rihanna attends the World Premiere of OCEANS 8 June 5, 2018 in New York.
The singer, 34, confirmed her involvement with the film by teasing audio for the soundtrack's lead single, "Lift Me Up," on Twitter. The song will be released Friday, Oct. 28, ahead of the film's premiere on Nov. 11.
The song is a tribute to actor Chadwick Boseman, who starred in the original "Black Panther" movie and died in November 2020 after a years-long battle with colon cancer. He was 43.
The song was co-written with Nigerian singer-songwriter Tems, Oscar-winning composer Ludwig Gransson and "Black Panther" director Ryan Coogler, according to Marvel. It will be released on Rihanna's Westbury Road label in partnership with Roc Nation, Def Jam Recordings and Hollywood Records.
Since her "Anti" album in 2016, the nine-time Grammy Award winner singer has established herself as a successful businesswoman and was named the world's youngest self-made billionaire woman in the U.S. by Forbes. Much of her wealth has come from her lucrative brands like Fenty Beauty and Savage x Fenty. | 2022-10-26T20:27:16Z | www.cnbc.com | Rihanna makes long-awaited return to music with 'Black Panther' sequel | https://www.cnbc.com/2022/10/26/rihanna-makes-long-awaited-return-to-music-with-black-panther-sequel.html | https://www.cnbc.com/2022/10/26/rihanna-makes-long-awaited-return-to-music-with-black-panther-sequel.html |
: "I love the car. They're losing too much money."
: "I don't need to go overseas to lose money. I can lose all the money I want here. So, we're not going for it."
: "Jimmy Chill likes FLEX. Why? Because it's got a product that we all need."
: "The whole neighborhood went to hell."
: "People actually trust it, okay? They believe in it, and that is going to keep it from going down much more. ... Not enough of a reason for me to own it." | 2022-10-26T23:56:33Z | www.cnbc.com | Cramer's lightning round: Lucid Group is losing too much money | https://www.cnbc.com/2022/10/26/cramers-lightning-round-lucid-group-is-losing-too-much-money.html | https://www.cnbc.com/2022/10/26/cramers-lightning-round-lucid-group-is-losing-too-much-money.html |
CEO Mark Zuckerberg reiterated his commitment to spending billions of dollars developing the metaverse amid investor concern about the health of his company's online advertising business.
Zuckerberg acknowledged that part of the reason his company is developing the metaverse is to ensure that it owns a platform in the future that won't be adversely impacted by the decisions of its rivals, like Apple
. But the bigger reason Zuckerberg is developing the metaverse is because technology companies can be more innovative when they build both the software and hardware that underpins a computing platform, he said.
Meta needs to focus on real revenue streams, not the Metaverse, says Ritholtz's Josh Brown | 2022-10-26T23:56:51Z | www.cnbc.com | Meta plans to lose even more money building the metaverse | https://www.cnbc.com/2022/10/26/meta-plans-to-lose-even-more-money-building-the-metaverse.html | https://www.cnbc.com/2022/10/26/meta-plans-to-lose-even-more-money-building-the-metaverse.html |
Ford Motor (F) reported a top- and bottom line beat for the third quarter after the closing bell on Wednesday, while demonstrating solid free cash flow — a key reason why the Club continues to back the automaker. Automotive revenue climbed 12% year-on-year, to $37.2 billion, beating analysts' forecasts of $36.25 billion, according to estimates compiled by Refinitiv. Adjusted earnings before interest and taxes (EBIT), or operating income, came in at $1.8 billion, ahead of the $1.4 billion to $1.7 billion range Ford management had guided for in September. Adjusted earnings-per-share fell by more than 40% year-on-year, to 30 cents a share, but beat the consensus estimate of 27 cents a share. This figure excludes a $2.7 billion non-cash, pretax impairment the company took on its investment in Argo AI. Including this charge, Ford recorded a net loss of $827 million in the third quarter. Cash flow from operating activities was $3.8 billion, while adjusted free cash flow came in at $3.6 billion, beating analysts' estimates of $1.4 billion. Bottom line Ford continues to benefit from its strong pricing power and higher levels of profitability in regions that were previously money-losing before CEO Jim Farley took the helm in 2020, aggressively restructuring operations. Meanwhile, what stood out to us the most in the quarter was the significant free cash flow the business is generating. It provides plenty of support to the 4.6% dividend yield, new share repurchases and, most importantly, continued investment in its electric vehicle future. At the same time, management guided its full-year EBIT outlook to the lower end of the $11.5 billion to $12.5 billion range it had reaffirmed only last month. But that decision looks prudent because it will make it more likely the company can achieve its full-year guidance in the fourth quarter — and we remain cautiously optimistic on Ford's ability to do so. That's why we continue to own the stock, even as we maintain our 2 rating , meaning we would wait for a pullback before buying more shares. But given profit estimates have come down and stock multiples have contracted in this higher interest rate environment, we are also lowering our price target on Ford to $16 a share from $18. Ford's stock was down nearly 1% in after hours trading, at roughly $12.70 a share. Quarterly results by business unit North America automotive revenues were $26.3 billion, inline with estimates. Adjusted EBIT was $1.3 billion, below the consensus figure of $1.6 billion. EBIT margin came in at 5%, but management expects it to return to double digits in the fourth quarter. Europe revenues were $6.8 billion, beating analysts' expectations of $6.2 billion. Adjusted EBIT came in at $204 million, well ahead of the $31 million loss predicted by Wall Street. China revenues came in at about $400 million, below estimates of $600 million. Ford posted an adjusted EBIT loss of $193 million, steeper than the $30 million loss forecasted by analysts, a result of investments in electric vehicles. South America revenues were about $900 million, a beat versus the consensus estimate of $750 million. Adjusted EBIT of $149 million exceeded the $19 million predicted by analysts. Ford notched its fifth straight quarter in which its South America business was profitable. International markets group revenue was $2.8 billion, a beat versus estimates of $2.4 billion. Adjusted EBIT came in at $229 million, also a beat on analysts' estimates of $125 million. Ford Credit earnings before taxes (EBT) checked in at $600 million, missing analysts' forecasts of $749 million. Outlook Ford now expects full year adjusted EBIT of about $11.5 billion, which would be a 15% increase on 2021. That's at the low end of the $11.5 billion to $12.5 billion range management reaffirmed in September, but above the consensus estimate of $11.3 billion for the year. This outlook assumes higher commodity- and broad-based inflationary costs of about $9 billion, up from $7 billion last quarter. The company increased its estimate for full-year adjusted free cash flow to between $9.5 billion to $10 billion. That's a significant increase from management's previous guidance of $5.5 billion to $6.5 billion. The revised outlook was due to strength in Ford's automotive operations, including restructured businesses in regions outside North America. Argo Ford announced it will wind down its Argo AI business, which specializes in autonomous vehicle technology. For background, when Ford invested in Argo in 2017, the company thought it would be able to bring Level 4 Advanced Driver Assistance Systems (ADAS) technology to market by 2021. Level 4 ADAS is commonly referred to as "High Driving Automation" that requires minimum human interaction. This target has not been attained despite the more than $100 billion Ford invested in the technology. Ford remains a believer in the potential of L4 systems, but said the road to bring fully autonomous vehicles to market at scale with a profitable business model "will be a long one." For this reason, Ford is shifting its focus to Level 2+ (partial automation) and Level 3 ADAS (conditional driving automation), while winding down Argo. As a result, it recorded a $2.7 billion non-cash, pretax impairment on its investment. Some of the talent at Argo will join Ford. This pivot will raise concerns that Ford will miss out on the development of fully autonomous vehicles, whenever that may be. But from a business perspective, Ford is prioritizing the development of technology that will generate a more sizeable return in the near term. Other highlights The company said it is resuming a "modest" share repurchase program to offset dilution from stock-based compensation. Ford said its board of directors approved the repurchase of up to 35 million shares over time for that purpose. (Jim Cramer's Charitable Trust is long F. 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.
Ford F-150 pickup trucks at a dealership in Colma, California, on Friday, July 22, 2022. | 2022-10-27T01:27:57Z | www.cnbc.com | Ford's earnings beat, free cash flow mean we're sticking with automaker | https://www.cnbc.com/2022/10/26/fords-earnings-beat-free-cash-flow-mean-were-sticking-with-automaker.html | https://www.cnbc.com/2022/10/26/fords-earnings-beat-free-cash-flow-mean-were-sticking-with-automaker.html |
Club holding Meta Platforms (META) reported mixed third-quarter results and weak forward guidance after the closing bell Wednesday. Wall Street punished the Facebook-parent in after-hours trading, taking the stock down roughly 19%, as a seemingly tone deaf management team led by founder and CEO Mark Zuckerberg refused to listen to their investor-base and throttle back investments in their pursuit of the metaverse. While beating expectations, revenue for Q3 dropped 4% to $27.71 billion. It's the second quarterly decline in a row, and the company warned of another drop in the current fourth-quarter. Diluted Q3 earnings of $1.64 per share — down 49% year over year — missed the $1.89 estimates. Bottom line Management's build-the-metaverse-or-die-trying approach to spending is incredibly frustrating. Meta isn't going to cut spending in the year ahead. They're not even going to keep it flat. Instead, they're opting to up the ante and increase total expenses by mid-teen percentage points in 2023. The company expects Reality Labs operating losses next year to "grow significantly year-over-year." Reality Labs is the metaverse unit that includes augmented and virtual reality related consumer hardware, software and content. Meta Platforms is right to invest in what they believe is the next major computing platform. However, we can't help but think that right now — given the tough economic climate— is not the time to aggressively pour money into what many would consider a moonshot. Even management has acknowledged that the metaverse won't payoff, if at all, until multiple years down the line. By contrast, the underlying fundamentals of the core business actually don't seem that bad. In fact, they're actually proving pretty resilient. You listen to the conference call and for the most part, you actually like what you hear. Engagement remains healthy. The number of people using Facebook is as high as it has ever been, with the Family of Apps overall now reaching over 3.7 billion people globally. Even Reels — Meta's answer to short-form video dominated by TikTok — appears to making good progress and causing users to spend incrementally more time on the platform. Additionally, the team is starting to monetize Messenger and WhatsApp — ideas that used to get investors excited before the metaverse started to dominate the discussion. We think dialing back metaverse investments and putting more money into stock buybacks would make sense, given the company's roughly $300 billion market value, factoring in the after-hours plunge, and it's low-teens price-to-earnings multiple, even if you take an axe to profits on this guide. Given the team's stubbornness when it comes to spending and unwillingness to listen to investors, we have no choice but to downgrade shares to a 2 rating . We also cut our price target to $150 per share from $235. While the stock was below $105 in after hours trading. As much as downgrading the name pains us at these depressed levels and sub-market valuation, the sad reality is that so long as management stays this course, unwilling to temper spending at least in the near-term, upside will be limited and we can't justify adding additional capital in a down market at this time —especially with significantly more attractive opportunities out there in companies with management teams more in tune with the economic environment. Companywide Q3 results Within the Family of Apps unit — which includes Facebook, Instagram, Messenger, WhatsApp and other services — advertising revenue of $27.24 billion exceeded expectations of $26.86 billion while other services revenue came in at $192 million. That segment accounts for nearly all of the company's total revenue. Reality Labs, meanwhile, saw sales of $285 million, missing expectations of $419 million. As for profitability, Family of Apps operating income came in at $9.34 billion, short versus expectations of $9.65 billion. Reality Labs reported an operating loss of $3.67 billion, greater than the $3.47 billion loss the Street was anticipating. Meta repurchased $6.5 billion worth of shares during in the quarter and ended with $41.89 billion in cash, cash equivalents and marketable securities on the balance sheet. As of the end of the third quarter, Meta had $17.78 billion remaining under its share repurchase authorization. Quarterly engagement Facebook Daily Active Users (DAUs): 1.98 billion, in line with expectations. Facebook Monthly Active Users (MAUs): 2.96 billion, also roughly in line with expectations. Facebook DAUs/MAUs came in at 67%, marking the third consecutive quarter at that level following six straight quarters at 66%. Facebook Global Average Revenue per User (ARPU): $9.41 versus expectations of $9.83. As for Family of Apps engagement metrics, which more broadly represent engagement across Facebook, Instagram, Messenger, and/or WhatsApp, the results were as follows. Family Daily Active People (DAP): 2.93 billion, up 4% year over year Family Monthly Active People (MAP): 3.71 billion, up a similar 4% year over year Family DAP/MAP came in at 79%, largely in line with the rate we've seen over the past two years Family Global Average Revenue per Person (ARPP): $7.53. Notably, management commented on the release that ad impressions across the Family of Apps were up 17% year over year. However, offsetting that, the average price per ad was down 18% year over year. Reels commentary Engagement trends at Reels were positive with management noting that plays across Facebook and Instagram are up 50% versus six months ago at over 140 billion. The increasing popularity of Reels isn't completely at the cost of other Meta offerings, with management noting that they believe they are "gaining time spent share on competitors like TikTok." While the Reels numbers are encouraging in terms of Meta's ability to compete with TikTok, short-form video still monetizes at a lower level than Feed and Stories — and as a result, the shift of engagement from those mediums to Reels poses a near-term headwind to revenue. Guidance Meta Platforms expects total revenue in the fourth quarter of 2022 (current quarter) to be in the range of $30 billion to $32.5 billion, short versus estimates of about $32.36 billion at the midpoint. Meta's Q4 revenue in 2021 was $33.67 billion. On the expense side, management shaved the high end of full-year expense expectations, now projecting a range of $85 billion to $87 billion, versus the $85 billion to $88 billion range previously forecast. Capital expenditures (capex) guidance was tightened to a range of $32 billion to $33 billion versus $30 billion to $34 billion previously forecast and above the $30.41 billion consensus. Additionally, the 2023 expense guide is not at all what investors were looking for. Instead of flat to down total expenses for next year, management sees that number in the $96 billion to $101 billion range. Capex in 2023 is expected to be in the range of $34 billion to $39 billion, more than the $29.65 billion the Street was looking for with nearly all of the increase versus 2022 levels attributable to investments in the data center and artificial intelligence (AI). The team said they expect the investments in AI to provide a technology advantage and "unlock meaningful improvements across many of [their] key initiatives including feed, Reels, and ads." (Jim Cramer's Charitable Trust is long META. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. | 2022-10-27T01:28:03Z | www.cnbc.com | Metaverse-obsessed Mark Zuckerberg refuses to cut costs. It's no wonder the stock tanked | https://www.cnbc.com/2022/10/26/metaverse-obsessed-mark-zuckerberg-refuses-to-cut-costs-its-no-wonder-the-stock-tanked.html | https://www.cnbc.com/2022/10/26/metaverse-obsessed-mark-zuckerberg-refuses-to-cut-costs-its-no-wonder-the-stock-tanked.html |
A GE AC4400CW diesel-electric locomotive in Union Pacific livery, is seen ahead of a possible strike if there is no deal with the rail worker unions, as a Metrolink commuter train (right) arrives at Union Station in Los Angeles, California, September 15, 2022.
Rail strike is possible, but 'not probable': Union Pacific CEO
CEO Lance Fritz told CNBC during an interview on "Squawk on the Street" last Thursday of the BMWED, "We've got some negotiating to do with that union and we've agreed to status quo, we're in status quo while we're doing that. I am confident we will find a way to craft an agreement that can be taken back out for ratification. That doesn't mean a strike is not possible, it just means in my opinion I don't think it's probable. We've got plenty of runway to figure it out."
Union Pacific, Berkshire Hathaway
's BNSF, CSX
, Norfolk Southern
and the U.S. railroads owned by Canadian Nationa
l are among the Class I freight railroads represented by the NCCC.
The BMWED is the third-largest union with 23,900 members. All 12 unions that represent a total of 115,000 workers must ratify their contracts to prevent a strike. | 2022-10-27T01:28:09Z | www.cnbc.com | Second railroad union votes down deal needed to avert strike | https://www.cnbc.com/2022/10/26/second-railroad-union-votes-down-deal-needed-to-avert-strike.html | https://www.cnbc.com/2022/10/26/second-railroad-union-votes-down-deal-needed-to-avert-strike.html |
Top Wall Street executives are sounding the recession alarm. Earlier this month, Amazon founder Jeff Bezos became the latest corporate titan to warn of a recession, noting in a Twitter post that it's time to "batten down the hatches." His warning echoed that of Goldman Sachs CEO David Solomon, who said there's a "good chance" the U.S. is headed for a recession. JPMorgan Chase CEO Jamie Dimon also predicted the U.S. is likely to tip into a recession in six to nine months. The risks of a recession have risen sharply this year, as stubbornly high consumer prices forced central banks around the world to rapidly hike interest rates to rein in inflation, roiling markets and putting investors on edge. Fund manager Brian Arcese also believes the U.S. is headed for a recession — albeit one that is milder than the devastating global financial crisis of 2008. Investors who want to be "recession proof" should have a balanced portfolio, he added. "A balanced portfolio is one that is practical and designed to be all-weather," said the portfolio manager at Foord Asset Management, who co-manages the Foord International Fund and the Foord Global Equity Fund. "You need to have stocks that will work in any type of economic environment," he told CNBC Pro Talks last week. Market watchers typically describe a balanced portfolio as having a 60% allocation to stocks and a 40% allocation to bonds, but Arcese said he does not agree with this view. He likens his strategy to a barbell approach of growth-oriented names and value stocks, as well as stocks that fall in between the growth and value spectrum. "The overarching theme among all the names, if you really want to recession proof your portfolio, is to make sure that all the names that you own, whether they are growth, value, dividend paying or whatever bucket the market wants to put them in, that they all have good management teams that have a history of allocating capital well and a history of managing through an economic cycle. With that, you can gain a lot of comfort," he said. In the latest installment of CNBC Pro Talks last week, he named three stocks he thinks investors should own to protect their portfolios in a recession. Recession-proof stocks One stock he likes is Minnesota-based health insurer UnitedHealth , which he described as a "market leader" in managed care solutions. "It's a company that grows earnings in a in a defensive way through cycles — low double digit to mid-teens rate. Even a company like that is impacted by a recession but certainly far less on a relative basis than deep cyclicals for example," he said. Deep cyclicals are companies that are highly sensitive to economic cycles — they outperform when markets rise and underperform when markets dip. Earlier this month, the company reported third quarter earnings and revenue that beat consensus estimates. On top of that, it raised its full-year outlook. Shares in the company are up nearly 8% this year, handily beating the broader market. Arcese sees Pennsylvania-based industrial chemicals firm Air Products as an "incredibly defensive" company that provides a "real direct hedge" against inflation. It also has a track record of having grown dividends for 40 consecutive years, he added. "A company like that, it will go down in absolute terms as equity markets decline but it's an incredibly defensive business and something that we are happy to own through this period, and it offers that real direct hedge against inflation if it does carry on longer than investors in general expect," Arcese said. Rounding off his list is copper miner Freeport McMoRan . The stock has lost nearly 24% of its value this year, largely because of the sharp decline in copper prices, which was prompted by investors' fears of a recession, according to Arcese. But copper is key to the global energy transition, and Freeport McMoRan is well positioned to benefit thanks to its ability to mine the commodity at a low cost. "If you believe in energy transition, in green energy, the world doesn't have enough copper to get us there. And so that's a name where you're being given an attractive entry point. And if inflation continues, then it also offers you that real time inflation hedge as well," he said. The company delivered a beat on third quarter earnings, as it reported earnings per share of 26 cents on revenue of $5.00 billion, higher than analysts' expectations of 24 cents per share in earnings and $4.88 billion of revenue, according to StreetAccount. The Foord International Fund has continued to "defend investor capital this year," according to the fund's latest factsheet . The fund is down 5.8% as at end-September — beating the global stock market, which declined 25.2%, according to the fund's commentary. The Foord Global Equity fund has also done better than the market this year. The fund has lost 23.3% of its value as at end-September, against a decline of 25.6% on the MSCI World, data from the fund's latest factsheet showed. | 2022-10-27T01:28:15Z | www.cnbc.com | Outperforming fund manager on stocks to recession-proof your portfolio | https://www.cnbc.com/2022/10/27/outperforming-fund-manager-on-stocks-to-recession-proof-your-portfolio.html | https://www.cnbc.com/2022/10/27/outperforming-fund-manager-on-stocks-to-recession-proof-your-portfolio.html |
During the Truss administration, the market called the medium-term fiscal plan the "Halloween budget". First, the release date is October 31, which coincides with Halloween. Secondly, it expressed investors' mixed emotions, including both expectation and worry.
The plan has now been postponed to Nov. 17. We do not yet know the exact details of the budget proposal. The market expects that this two-week delay will save the budget between 15 billion and 20 billion pounds. It is because the UK Office for Budget Responsibility can use recent energy prices, and a stabilizing bond market, to make public financial forecasts.
If it had been published at the end of this month as originally planned, the Office of Budget Responsibility would have had to use financial markets and energy prices from early to mid-October as a basis. The bond market was sharply volatile at that time, and Treasury yields, which were at high levels, would have pushed up the projections of the government's borrowing costs.
But the delayed announcement of the fiscal plan will mean that the Bank of England lacks a reference when it makes its next decision to raise interest rates on Nov. 3. It would be "flying blind" if the central bank had to set interest rates before knowing the government's budgetary plans, according to BoE governor Andrew Bailey.
The British government is currently facing a fiscal gap of 30 to 40 billion pounds. The most important task for Sunac's new government, investors say, is to bring Britain's public finances back to a sustainable state. In response, Hunt, who remains chancellor of the exchequer, warned of "eye-wateringly" difficult choices to come.
As we have seen so far, the new government has refused to guarantee a series of promises previously made by the Truss government.
One is whether Universal Credit will rise in line with prices, meaning that real benefits could also be lower next year. In addition, the government refused to clarify whether the Tory manifesto's "triple lock" on pensions remained in place. "Triple lock" means that each April the UK state pension will be adjusted according to the highest of inflation, the rate of wage inflation or 2.5%, the three figures.
Sunak said in his first speech after taking office, "will always protect the most vulnerable"; yesterday, he also made seven key manifesto pledges, covering health care, education, defense, and other aspects. It was only a directional statement, and he didn't propose specific measures, but some analysts believe this may be contrary to his fiscal austerity.
CEO of Saltmarsh Economics
"The problem the government really has is that they're stuck in this narrative still about debt reduction and filling this black hole in the public finances at the same time. You know, Rishi Sunak, and his dress yesterday made it a priority to focus on seven key manifesto pledges. And they include leveling up with improving the health service in the UK, education in the UK, more spending on defense. So how do you square that with austerity and public spending cuts?" | 2022-10-27T03:03:19Z | www.cnbc.com | CCTV Script 27/10/22 | https://www.cnbc.com/2022/10/27/cctv-script-27/10/22.html | https://www.cnbc.com/2022/10/27/cctv-script-27/10/22.html |
Sheila Chiang
Two women using their mobile phones at Raffles Place, the central business district area of Singapore.
Overall, the internet economy in the six countries is predicted to reach $330 billion by 2025 if companies put a greater focus on profitability for the next three years. Some of Southeast Asia's biggest unicorns such as Grab
and Sea Limited
have yet to record a profit, amassing billions in losses in 2021.
Investors will be cautious in the short-term as most do not expect a return to 2021 deal activity and valuation peaks in the next couple of years.
e-Conomy SEA 2022 report | 2022-10-27T04:34:38Z | www.cnbc.com | Google, Temasek, Bain report on Southeast Asia digital economy in 2022 | https://www.cnbc.com/2022/10/27/google-temasek-bain-report-on-southeast-asia-digital-economy-in-2022.html | https://www.cnbc.com/2022/10/27/google-temasek-bain-report-on-southeast-asia-digital-economy-in-2022.html |
McDonald's is set to report earnings Thursday before the market opens. The company typically issues a release around 7 a.m. ET.
McDonald's earnings conference call is scheduled for 8:30 a.m. ET.
The fast-food giant is expected to report earnings of $2.58 per share.
The company's stock trades for about $260 per share, giving it a market value of about $200 billion.
McDonald's restaurant sign is seen in Streator, Illinois, United States, on October 15, 2022.
is due to report its third-quarter earnings before the bell on Thursday.
Earnings per share: $2.58
Revenue: $5.69 billion
In the first half of 2022, the fast-food giant saw a slowdown in spending from lower-income consumers, and that trend will likely continue this quarter. Analysts surveyed by StreetAccount are projecting same-store sales growth of 5.8%, fueled largely by higher menu prices.
U.S. same-store sales are expected to rise 4%, according to StreetAccount estimates. McDonald's has been leaning into value offerings to appeal to customers whose budgets are under pressure from inflation. The burger chain may also be pulling in sales from diners who are trading down from fast-casual or full-service restaurants.
Investors also will have their eyes on McDonald's international operated markets segment. The IOM division includes European markets like France, Germany and the United Kingdom, all of which have been hit hard by higher energy costs. Additionally, the strong U.S. dollar means painful conversation rates for McDonald's sales, hitting markets with company-owned restaurants.
McDonald's shares have fallen 4% this year, dragging the company's market value down to roughly $200 billion. But it's outperformed the broader market. The S&P 500
has declined 19% in the same period. | 2022-10-27T04:34:44Z | www.cnbc.com | McDonald's (MCD) earnings Q3 2022 | https://www.cnbc.com/2022/10/27/mcdonalds-mcd-earnings-q3-2022.html | https://www.cnbc.com/2022/10/27/mcdonalds-mcd-earnings-q3-2022.html |
The logo of Shell on an oil storage silo, beyond railway tanker wagons at the company's Pernis refinery in Rotterdam, Netherlands, on Sunday, Oct. 23, 2022.
reported a third-quarter profit Thursday, but lower refining and trading revenues marked an end to its run of record quarterly earnings.
The oil giant also announced Thursday a new share buyback program, which is set to result in an additional $4 billion of distributions and expected to be completed by its next earnings release.
It also revealed plans to increase its dividend per share by around 15% for the fourth quarter 2022, to be paid out in March 2023. | 2022-10-27T06:36:23Z | www.cnbc.com | Oil giant Shell plans to raise dividend as it reports third-quarter profit | https://www.cnbc.com/2022/10/27/oil-giant-shell-plans-to-raise-dividend-as-it-reports-third-quarter-profit.html | https://www.cnbc.com/2022/10/27/oil-giant-shell-plans-to-raise-dividend-as-it-reports-third-quarter-profit.html |
Comcast third quarter revenue slipped 1.5% to $29.85 billion, compared with the prior-year quarter that included the Tokyo Olympics, beating analyst expectations.
Comcast reported that its Xfinity Mobile business now has 5 million customer lines.
The Comcast building in New York.
on Thursday reported third-quarter earnings that beat analyst estimates, despite seeing revenue slightly decline and continued softness in broadband customer growth.
The company said it added 14,000 broadband customers during the third quarter – an improvement from the second quarter, when Comcast didn't add any new customers for the first time ever. Still, it's a sign that cable broadband providers are facing increased competition from telecom and wireless internet companies.
The slowdown in new customers is hitting the cornerstone of Comcast's business, similar to peers like Charter Communications
and Altice USA
. AT&T
said last week building out its fiber-optic network remains a priority for the company, and it added 338,000 new customers during the quarter.
Comcast's revenue declined 1.5% to $29.85 billion compared with the same quarter last year, when the company's NBCUniversal unit reaped more advertising dollars from airing the Tokyo Olympics on its TV networks. The company also recorded non-cash impairment charges related to its Sky business in the U.K.
Its adjusted earnings before interest, taxes, depreciation and amortization rose 5.9% to $9.5 billion compared to the same period last year.
Peacock, the company's fledgling streaming service, surpassed 15 million paying customers, an increase of more than 70% year-to-date, the company Thursday.
Revenue for the NBCUniversal unit dropped about 4% to $9.6 billion when compared to the same quarter last year, when the Tokyo Olympics took place and added $1.8 billion in revenue to the media segment. NBCUniversal's media segment is comprised of its broadcast and cable TV networks and streaming.
Due to the absence of the Olympics, the media segment's revenue declined roughly 23% to $5.23 billion. It would have been up 4.4% excluding the Olympics. Advertising revenue for the segment was down 35% for the same reason, although the company said that was partially offset by an increase in advertising revenue from Peacock.
NBCUniversal's movie studios revenue was up 31.4% to $3.2 billion due to higher theater and content licensing revenue. The company said theater revenue in particular nearly doubled to $673 million mainly due to the releases of Jurassic World: Dominion and Minions: The Rise of Gru.
NBCUniversal Jeff Shell recently said on CNBC that he believed that the company's movie business has been performing well on the hybrid model of releasing some films simultaneously in theaters and on streaming service, Peacock – such as its latest installment of the Halloween franchise – while still waiting to make other available to viewers at home, such as Minions. | 2022-10-27T11:10:27Z | www.cnbc.com | Comcast (CMCSA) earnings Q3 2022 | https://www.cnbc.com/2022/10/27/comcast-cmcsa-earnings-q3-2022.html | https://www.cnbc.com/2022/10/27/comcast-cmcsa-earnings-q3-2022.html |
said Thursday that travel demand is still strong but warned that delays in new aircraft deliveries from Boeing
could continue into 2024.
The airline reported a $277 million profit in the third quarter on record revenue of $6.22 billion, up nearly 33% from last year.
The Dallas-based carrier forecast a jump in revenue for the last three months of the year of between 13% and 17%, compared with 2019 levels. It expects capacity to be down about 2%. | 2022-10-27T11:10:40Z | www.cnbc.com | Southwest (LUV) earnings 3Q 2022 | https://www.cnbc.com/2022/10/27/southwest-luv-earnings-3q-2022-.html | https://www.cnbc.com/2022/10/27/southwest-luv-earnings-3q-2022-.html |
Andy Jassy, CEO of Amazon and then CEO of web services at Amazon.com Inc., speaks during the Amazon Web Services (AWS) Summit in San Francisco, California, U.S., on Wednesday, April 19, 2017.
reports third-quarter earnings after the bell on Thursday.
Another bright spot could be Amazon's advertising unit, which has been more resilient compared to peers including Meta
, whose ads businesses have gotten whacked due to the economic environment and Apple's
iOS privacy changes last year.
Big tech is at its lows so there should be upside from here, says EMJ Capital's Eric Jackson | 2022-10-27T12:11:21Z | www.cnbc.com | Amazon (AMZN) earnings Q3 2022 | https://www.cnbc.com/2022/10/27/amazon-amzn-earnings-q3-2022.html | https://www.cnbc.com/2022/10/27/amazon-amzn-earnings-q3-2022.html |
Further details on the new conditions for European banks will be published at 2:45pm London time.
In addition, the latest rate hike takes the ECB's main benchmark from 0.75% to 1.5%, a level not seen since 2009 before the sovereign debt crisis.
ECBK
Market participants had two key questions ahead of the meeting: When will the ECB start reducing its balance sheet, in a process known as quantitative tightening, and what will happen to the lending conditions for banks in the near future?
Regarding the latter, the ECB announced Thursday that it was changing the terms and conditions of its targeted longer-term refinancing operations, or TLTROs. These are a tool that provides European banks with attractive borrowing conditions, designed to incentivise lending to the real economy.
"During the acute phase of the pandemic, this instrument played a key role in countering downside risks to price stability. Today, in view of the unexpected and extraordinary rise in inflation, it needs to be recalibrated," the ECB said in a statement Thursday.
"With this third major policy rate increase in a row, the Governing Council has made substantial progress in withdrawing monetary policy accommodation. The Governing Council took today's decision, and expects to raise interest rates further, to ensure the timely return of inflation to its 2% medium-term inflation target," the central bank said in its statement.
Several economists have projected another rate increase in December of 50 basis points. The ECB, however, did not indicate the level of future rate rises, saying that they will be data dependent.
It comes as the ECB is dealing with both record-high inflation and a slowing economy, with many economists predicting a recession in the region before the end of the year. It's a fine balance for the central bank, as if it hikes rates aggressively in an effort to deal with inflation, it could cause even more trouble for the wider economy.
In September, inflation in the 19 member bloc came in at 9.9%. | 2022-10-27T12:41:41Z | www.cnbc.com | ECB meeting Oct 2022: Hikes rates by 75 basis points, new terms for European banks | https://www.cnbc.com/2022/10/27/ecb-meeting-oct-2022-hikes-rates-by-75-basis-points-new-terms-for-european-banks.html | https://www.cnbc.com/2022/10/27/ecb-meeting-oct-2022-hikes-rates-by-75-basis-points-new-terms-for-european-banks.html |
New York Post's website was temporarily hacked on Thursday, also affecting its Twitter account.
The tweets and posts were taken down quickly, and New York Post website appears to be back to normal.
The New York Post's website and Twitter account were hacked Thursday, as racist and sexually explicit headlines about Rep. Alexandria Ocasio-Cortez and President Joe Biden were published.
The posts were removed shortly thereafter on Thursday morning, and the News Corp
-owned New York tabloid newspaper's website was operating as usual.
A New York Post spokesperson confirmed in an email to CNBC on Thursday that the website was hacked, and they are currently investigating the cause. The spokesman provided no further comment. | 2022-10-27T14:13:14Z | www.cnbc.com | New York Post website hacked, racist, sexist headlines target politicians | https://www.cnbc.com/2022/10/27/new-york-post-website-hacked-racist-sexist-headlines-target-politicians.html | https://www.cnbc.com/2022/10/27/new-york-post-website-hacked-racist-sexist-headlines-target-politicians.html |
Operators chalk up the scaled back hours to staffing shortages, which have improved but are still putting pressure on eateries.
Veselka is serves from its original location, which opened in 1954 in Manhattan's East Village neighborhood.
But some chains have seen more dramatic changes to their schedules. Denny's
and Subway have all seen their averages shrink by double-digits.
Those chains' significant drop in operating hours is likely due to the reduction of diners and other eateries that are open for 24 hours. The reduced hours are also hitting the New York metropolitan area's restaurants, which on average have slashed their weekly schedules by more than 9 hours, Datassential found.
Among those is Veselka, a neighborhood staple, which was open 24 hours a day, seven hours a week since 1991 until the pandemic hit. Now, the restaurant still shutters every night by 11:30 p.m. and reopens at 8 a.m. even though New York City has lifted its dining restrictions.
In Seattle, restaurants have shaved an average of 7.7 hours from their weekly hours. Daisley Gordon, owner of Cafe Campagne, also said labor was the reason for going from operating seven days a week before the pandemic, to four and a half days.
We're still seeing a lot of turnover from labor, says Brinker International CEO | 2022-10-27T14:13:33Z | www.cnbc.com | Restaurant operating hours are still shorter compared to 2019 | https://www.cnbc.com/2022/10/27/restaurant-operating-hours-are-still-shorter-compared-to-2019.html | https://www.cnbc.com/2022/10/27/restaurant-operating-hours-are-still-shorter-compared-to-2019.html |
SHOP-CA
The logo of Shopify is seen outside its headquarters in Ottawa, Ontario, Canada, Sept. 28, 2018.
jumped 18% after the e-commerce company reported earnings that beat Wall Street's revenue estimates and a narrower-than-expected loss for the third quarter.
"Our merchant solutions revenue as a percentage of GMV, or Merchant Solutions attach rate, climbed to 2.14%, the highest level in Shopify's history," said Harley Finkelstein, Shopify's President. | 2022-10-27T15:44:41Z | www.cnbc.com | Shopify (SHOP) Q3 2022 earnings | https://www.cnbc.com/2022/10/27/shopify-shop-q3-2022-earnings.html | https://www.cnbc.com/2022/10/27/shopify-shop-q3-2022-earnings.html |
Far from Facebook's Big Tech days, Meta is no longer among the 20 most valuable U.S. companies after the stock sank 23% on Thursday. The company has lost 70% of its value this year and 74% since the stock peaked in September 2021, totaling over $730 billion in market cap lost. It's trading at its lowest since early 2016, when Barack Obama was still president.
The stunning collapse of Meta's share price is reminiscent of the dot-com bust days, but far bigger in terms of value erased from a single company. The slide began late last year as signs of a sputtering economy started to emerge, and accelerated in early 2022 after the company said Apple's
privacy change to iOS would result in a $10 billion revenue hit this year.
Founder and CEO Mark Zuckerberg has been unable to stop the bleeding and only seems to be making matters worse. Since changing the company name to Meta a year ago Friday, Zuckerberg has said the future of the company is the metaverse, a virtual universe of work, play and education. But investors just see it as a multibillion-dollar money pit, while the core advertising business shrinks — Facebook is forecasting a third consecutive drop in revenue for the fourth quarter.
Meta now trades for just 3 times revenue, less than one-third of its five-year average. It's now worth half as much as Berkshire Hathaway
and Procter & Gamble
This is a true bet-the-company moment for Mark Zuckerberg, says Platformer's Casey Newton | 2022-10-27T16:45:25Z | www.cnbc.com | Meta is no longer one of the 20 biggest U.S. companies | https://www.cnbc.com/2022/10/27/meta-is-no-longer-one-of-the-20-biggest-us-companies.html | https://www.cnbc.com/2022/10/27/meta-is-no-longer-one-of-the-20-biggest-us-companies.html |
Corporate bond yields are reaching levels they haven't seen in years, and that may have investors taking another look at the asset class. The corporate bond market has taken a beating so far this year. The Bloomberg Corporate Index , which measures the investment grade corporate bond market, has lost 19.97% year to date, as of Tuesday's close, while the S & P 500 is down 19.03%. The move is largely due to rising interest rates, rather than distressed conditions at the issuer level, said Rajeev Sharma, managing director of fixed income at Key Private Bank. "Issuers in the corporate bond market are very well capitalized," he said. Many believe that's created an opportunity to move into investment-grade corporate bonds. "This is the first time where there has been a sustained buying opportunity of this magnitude in about 15 years, at least," said Michael Kessler, senior portfolio manager at Albion Financial. The firm, ranked No. 3 on CNBC's Financial Advisor 100 list , has $1.4 billion in assets under management. About $100 million of that is in investment-grade corporate bonds. In fact, corporate bonds have had a "double whammy" of underlying Treasury yields going through the roof and credit spreads widening at the same time, he added. The average credit spread has historically been around 100 basis points, but these days it is around 150 basis points, Kessler said. "The good news is that in today's market environment, with rates at 15 year highs and Investment Grade credit spreads 50 basis points above the long-term average, you don't have to take much risk in order to earn a healthy real yield, provided that consensus inflation expectations (sell side, Fed, market-implied, and Albion house view alike) are more or less correct," he said. Investors can buy corporate bonds in $1,000 increments or through a diversified exchange traded fund. What to look for With the Federal Reserve still raising interest rates and concern growing about a possible recession, the quality of the corporate bond matters, experts said. For a bond to be considered investment grade , it should be rated Baa or above by Moody's or BBB and above by S & P and Fitch. "For a lot of people, the fixed income side of the portfolio is about preservation, stability, being a shock absorber of sorts," said Lyn Williams, investment advisor at Salem Investment Counselors, also on CNBC's FA 100 list . "When you're in a rising rate environment, like we're in right now, that quality becomes important because with rising rates, you have to take into consideration the worry of default risk." When it comes to duration, or bonds' average maturity, the shorter end has less interest-rate risk, while the farther out you go, the more risk an investor takes. Once you look at a company you think is a safe investment for a certain duration, you may decide that the little extra risk — compared to Treasurys — may be worth it for the greater return, Williams said. Being diversified is also important. "You don't want to necessarily be ever concentrated in a particular company," Williams said. "You may not necessarily want to be over allocated or concentrated in an industry. So in corporate bonds, I like to try to own good quality companies in a number of different industries at different sizes." Overall, the idea is to stay safe while still earning a decent yield. "We prefer to keep it pretty simple," Kessler said. "Right now, you can get paid quite an attractive yield to invest in something that is going to see the other side of a recession, if one is in fact coming." Investing in a fund One way to get exposure to the corporate bond market is through an ETF, such as the iShares iBoxx $ Investment Grade Corporate Bond ETF . Funds are very liquid, so it is easy to trade in and out of them, said Key Private Bank's Sharma. The issue is volatility, he said. "In times of volatility, we have seen a lot of outflows," he said. Corporate investment grade debt funds have seen $139.7 billion in outflows so far this year, according Refinitiv Lipper. That is the largest net redemptions on record of any full year dating back to 1992, when the firm began tracking weekly flows. "When an ETF has outflows, they tend to sell their most liquid names so that could be an issue as we enter recession," Sharma said. Where to look Albion's diversified corporate bond portfolio is a seven-year ladder of investment grade bonds, which don't necessarily change much with the ebbs and flows of the market. One industrial stalwart the firm likes is John Deere , whose two-year bond has a yield of 4.653% as of Tuesday's close, according to TradeWeb. While it doesn't necessarily trade at a yield premium, it is a really solid bond, Kessler said. There are also some senior unsecured bonds from companies in which Albion also owns the common stock, and therefore knows very well. One name is Hasbro , whose two-year bond is yielding 5.428% and five-year is yielding 5.951%, TradeWeb's data show. Another issuer is Fiserv , whose two-year paper yields 5.418% while its five-year offers 5.636%. Other names in Albion's portfolio include Equinix , Enbridge , and Toyota . For Sharma, the financial sector looks interesting. Bonds there have a tremendous amount of liquidity, are extremely well capitalized and have various maturities, he said. "You want to make sure you're interested in corporate bonds that are very liquid so you can sell them if you need to," he explained. "You want to look at very strong balance sheets, strong companies." Utilities, on the other hand, may have strong balance sheets, but the bonds tend to be issued in 30 years, which adds a higher degree of interest rate risk, he added. For Palisade Capital Management, convertible bonds look attractive right now, especially since inflation is high and interest rates are moving up. Convertibles are a hybrid, fixed-income security that can also be converted into common stock. "That's very important, particularly in times of inflation, because you have the opportunity to offset the negative impact of duration with the positive aspect that the stock can go up and the value of your bond can appreciate far, far more," than an ordinary bond, said Dan Veru, chief investment officer of Palisade Capital Management . The firm has a convertible product called the Palisade Capital Management short duration convertible bond strategy . As of the third quarter, its top holdings were Herbalife Nutrition , New Mountain Finance, Western Digital and New Relic . There are still those that are not ready to add exposure to corporate bonds. First Foundation' s corporate bond exposure is still fairly low, said Calvin Jones, the firm's managing director of fixed income. "In our mind, you're not being compensated, in order to take on that extra risk for extending into corporate credit," he said. "We're kind of still expecting corporate spreads to widen out, being offered a greater advantage to take on that corporate credit risk versus Treasurys. And that's kind of what we're waiting on." | 2022-10-27T16:45:50Z | www.cnbc.com | Why this could be the best opportunity in years to buy quality corporate bonds | https://www.cnbc.com/2022/10/27/why-this-could-be-the-best-opportunity-in-years-to-buy-quality-corporate-bonds.html | https://www.cnbc.com/2022/10/27/why-this-could-be-the-best-opportunity-in-years-to-buy-quality-corporate-bonds.html |
You can invest more in your 401k and IRA in 2023 — but should you be maximizing your contributions?
The IRS is raising contribution limits for 401(k) and IRAs in 2023.
The IRS has raised contribution limits on 401(k)s and IRAs in 2023 because of inflation. With inflation clocking in at 8.2% over the past year, government agencies are implementing changes to accommodate the higher cost of living. The Social Security recently administration announced an 8.7% cost-of-living adjustment for retirees in 2023.
Select looks at some of the changes happening to 401(k)s and IRAs for 2023, and whether you should be changing your savings strategies in response.
The IRS raises contribution limits for 401(k)s and IRAs
401(k) contribution limits for 2023
For 2023, the annual contribution limit for 401(k)s, 403(b)s, most 457 plans, and Thrift Savings Plan is $22,500, up from $20,500 in 2022.
Individuals above the age of 50 are also eligible for catch-up contributions to their 401(k). This means that these individuals can contribute above the $22,500 limit. The IRS increased the catch-up contribution value in 2023, from $6,500 in 2022 to $7,500. In total, employees above the age of 50 can contribute up to $30,000 to their 401(k). The IRS did not raise catch-up contributions for traditional or Roth IRAs.
IRA and Roth IRA contribution limits for 2023
For people who have a retirement account outside of their employer, annual contribution limits have increased for both traditional IRAs and Roth IRAs. In 2023, eligible individuals can contribute up to $6,500, up from $6,000, to their IRAs.
Roth IRAs have income limits, so individuals making above a certain income threshold are eligible for reduced contributions. Individuals who make above the upper range of that threshold are not eligible at all.
In 2023, the income phase-out range for single filers is $138,000 to $153,000. For married couples filing jointly, it's $218,000 and $228,000.
Should you be maximizing your 401(k) and IRA contributions?
With the annual 401(k) contribution limit rising, you might feel pressure to put more money into retirement savings. However, most people aren't contributing up to the 401(k) limit anyways: a recent Vanguard report found that only 14% of people with Vanguard 401(k) accounts were contributing the maximum amount allowed. The majority (58%) of those people were making more than $150,000 annually.
And even having access to a 401(k) puts you in a better position than many — in March 2022, 72% of public and private employees had access to some type of employer-sponsored retirement plan like a 401(k) or pension plan.
So if you're wondering whether you need to contribute more money to your 401(k) or IRA now, it really depends on your individual finances. If your employer offers to match a percentage of your contributions, your first priority should be contributing enough to earn the match. By not taking advantage of the match, you're essentially losing out on free money.
From there, if you have more money to invest, you'll want to consider possibly opening up a Roth IRA to take advantage of the tax benefits it offers. You can contribute to both a 401(k) and Roth IRA at the same time, as long as you meet the income requirements of a Roth IRA. With a Roth IRA, contributions are taxed up front, so you don't have to pay taxes on your investments or investment gains when you take distributions in retirement.
Select ranked Charles Schwab, Fidelity Investments and Ally Invest as some of the companies offering the best Roth IRAs based on factors like investment options, ease-of-use and fees.
Researchers at Vanguard recommend that people aim to invest 12% to 15% of their annual income towards retirement. If you're not there yet, try ramping up the percentage of money you save over time. For example, if you're currently investing 6% of your salary in order to earn your employer's match, you might increase that amount to 7% the next year and 8% the year after.
Regardless of how much you can put towards retirement, it's important to contribute early and on a consistent basis. Remember, that the sooner you contribute to your retirement accounts, the more time compound interest has to work its magic and help your money grow.
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In 2023, individuals will be eligible to contribute more to their 401(k)s than they had been in the past. The IRS increased the annual 401(k) contribution limit from $20,500 to $22,500. People who have Roth and traditional IRAs can also contribute more to these accounts in 2023, up to $6,500 annually.
Even though you can contribute more to these accounts, it doesn't mean you have to. Instead, focus on attaining your employer match (if they offer one) and increasing your annual savings rate over time.
What you need to know about about taking out a 401(k) loan or making a hardship withdrawal
Here’s the average 401(k) balance of Americans in their 40s — how do you compare? | 2022-10-27T16:45:57Z | www.cnbc.com | 401k and IRA 2023 Contribution Limits: What You Should Know | https://www.cnbc.com/select/401k-ira-contribution-limits/ | https://www.cnbc.com/select/401k-ira-contribution-limits/ |
Created in conjunction with Legends
and the architectural firm Populous, the open air stadium will be built across from Highmark Stadium in Orchard Park. The Bills' current stadium was built in 1973 and is the fourth oldest in the NFL.
The stadium won't have a roof, but it will feature an inside bowl and stacked seating design to provide some protection from the winds and snowy winters western New York is accustomed to. | 2022-10-27T17:15:46Z | www.cnbc.com | Buffalo Bills unveil first design images of their new $1.4 billion stadium | https://www.cnbc.com/2022/10/27/buffalo-bills-unveil-first-design-images-of-their-new-1point4-billion-stadium.html | https://www.cnbc.com/2022/10/27/buffalo-bills-unveil-first-design-images-of-their-new-1point4-billion-stadium.html |
Rendering of a United Launch Alliance' Atlas V rocket carrying Amazon satellites.
Amazon said on Thursday it will open a new plant in a Seattle suburb to build satellites for Project Kuiper.
Project Kuiper, unveiled in 2019, is Amazon's plan to build a network of 3,236 satellites in low Earth orbit to provide high-speed broadband internet. Amazon notched a key milestone in 2020 when the Federal Communications Commission authorized the satellite internet system. | 2022-10-27T18:16:45Z | www.cnbc.com | Amazon to open Kuiper internet satellite factory | https://www.cnbc.com/2022/10/27/amazon-to-open-kuiper-internet-satellite-factory.html | https://www.cnbc.com/2022/10/27/amazon-to-open-kuiper-internet-satellite-factory.html |
An array of bitcoin mining units inside a container at a Cleanspark facility in College Park, Georgia, U.S., on Friday, April 22, 2022.
Core Scientific mines for proof-of-work cryptocurrencies like bitcoin
. The process involves powering data centers across the country, packed with highly specialized computers that crunch math equations in order to validate transactions and simultaneously create new tokens. The process requires expensive equipment, some technical know-how, and a lot of electricity.
How ethereum and bitcoin are trying to go green | 2022-10-27T18:16:57Z | www.cnbc.com | Bitcoin miner Core Scientific warns it might go bankrupt, stock plunges | https://www.cnbc.com/2022/10/27/bitcoin-miner-core-scientific-warns-it-might-go-bankrupt-stock-plunges.html | https://www.cnbc.com/2022/10/27/bitcoin-miner-core-scientific-warns-it-might-go-bankrupt-stock-plunges.html |
Linde (LIN), a U.K.-based global industrial gas and engineering company, reported strong third-quarter results before the opening bell Thursday. We're like how the firm continues to grow its profits despite inflation. Revenue increased 15% from the year-ago period to $8.8 billion, outpacing the $8.3 billion consensus estimate, according to Refinitiv. Adjusted earnings of $3.10 per share — up 14% year over year — exceeded the $2.93 estimate and was well above guidance of $2.85 to $2.95. Additionally, operating profit rose 11% to $2.01 billion, beating expectations of $1.9 billion. Excluding cost pass throughs, which we will define later, company wide margins expanded 90 basis points year over year but were down 20 basis points sequentially. Linde's after-tax return on capital (ROC) was a record 21.8%, up 180 basis points from the second quarter and 510 basis points from last year. Bottom line Another under-promise, over-deliver quarter from Linde as the company continues to demonstrate strong pricing power (up 8% year over year) and great inflation management that more than offsets unfavorable impacts from the strong dollar and elevated energy pricing in Europe. We view Linde as a high quality, defensive company that can grow its earnings no matter the twists and turns the economy takes, with the business generating its highest after-tax ROC ever. Longer term, management believes (1) clean energy opportunities — especially after the passage of the Inflation Reduction Act — as a secular growth kicker, (2) continued operating discipline, and (3) a "relentless" focus on pricing and productivity gives them confidence in its ability to keep delivering +10% EPS growth over the next few years. For those reasons, we continue to stick by the name and are looking to upgrade our rating from the current 2 to a 1 on a pullback. Companywide Q3 results In addition to providing gas processing solutions, Linde's industrial gases are used in numerous settings, including hospitals, electronics manufacturing and clean fuels. The company also serves both consumer and industrial end markets. The following is a look at third-quarter sequential sales growth numbers for each category. Consumer-oriented (viewed as more resilient; about a third of total company sales) Health care up 3% Food & Beverage up 5% Electronics up 5% Industrial-oriented (viewed as more cyclical; accounts for the rest of sales) Manufacturing up 4% Chemicals & Energy flat Metals & Mining up 8% Other up 6% Although about one third of company sales are in resilient end-markets, Linde has a very defensive business model. A significant portion of the company's sales have fixed payment structures that don't change based on customer volumes. Even when volumes are down, which certainly could happen next year if the global economy slows as many predict, Linde believes it can preserve much of its top-line and profit. Linde also has many long-term supply agreements with high quality customers. Operating cash flow was $2.64 billion for the quarter, a solid beat compared to the $2.25 billion consensus. The company repurchased about $1.1 billion worth of shares in the third quarter. Management said it plans on recapitalizing its balance sheet given its strong credit rating, and that could mean more share repurchases in the future. As for some general commentary around the backlog, Linde's total electronics project backlog increased to $1.4 billion after recently being awarded a second large sale of gas contract for a major semiconductor manufacturer in the United States. Linde also continues to see some of the highest levels of investment activity in the Gulf Coast. Additionally, management thinks its backlog could increase $7 billon to $9 billion over the next few years due to the Inflation Reduction Act, which will accelerate the U.S. clean energy transition. Q3 segment results First off, when discussing operating margin performance, note that several times we mention the concept of "cost pass-through," which represents the contractual billing of higher energy cost charges to customers. While this pass-through does not impact actual profit dollars, it does dilute reported margins due to the adjustments made to both sales and costs. Gases Sales in the Americas of $3.69 billion, up 20% year over year, beat out expectations of $3.53 billion, driven by growth in all end markets aside from Health Care with the strongest growth being seen Chemicals & Energy. Operating profit of $974 million, up 13% over last year, was higher than estimates of $937 million. Excluding cost pass through, operating margins were up 50 basis points from last year. Asia Pacific sales of $1.66 billion, up 6% year over year, was in line with expectations. Sales growth was led by Electronics and Chemicals & Energy, while volume growth was equally split between base business and project startups. Operating profit of $429 million was up 12% from last year and roughly in line with the $424 million estimate. Excluding cost pass throughs, margins increased 180 basis points year over year. Sales in Europe, Middle East & Africa (EMEA) of $2.13 billion, up 11% year over year, was higher than expectations of $2.04 billion, with growth seen in all end markets except Health care and led by the Food & Beverage and manufacturing. Operating Profit was $465 million, a miss versus estimates of $481 million and down 2% year over year and 13% sequentially as leverage was impacted by the deconsolidation of its Russian business and market concerns about a collapse in margins due to rising energy costs in Europe. Linde's margins, excluding cost pass throughs, expanded 60 basis points year over year, a sign that continues to show those fears to be overblown. Engineering (not geography specific) Sales of $828 million, up 38% year over year, were a beat versus $595 million, while operating profit of $150 million, up 42% year over year, exceeded estimates of $89 million. One reason for the significant growth in the quarter was favorable timing of Americas' projects, so that will create a small headwind for the fourth quarter. Global Other (not geography specific) Sales of $490 million was ahead of expectations for $467 million, while an operating loss of $8 million was slightly better than the $20 million loss expected. Guidance Looking ahead to the fourth quarter, management forecasted adjusted earnings of $2.80 to $2.90 per share, 8 cents short at the midpoint versus the $2.93 per share consensus. Keep in mind that this guidance assumes zero economic growth at the top end of the range and recessionary conditions at the midpoint. So it's de-risked, so to speak, if economic conditions worsen. This outlook represents an increase of 1% to 5% versus 2021 figures despite the impact of the strong dollar (an 8% headwind). But it also represents an 8% falloff at the midpoint from the third quarter to the fourth and that's due to a 4% headwind due to timing of some Engineering sales, 2% on foreign (FX), 1% on the divestiture of its non-core temperature-controlled logistics business, Gist Limited, and also a consideration of recessionary considerations. Still, Linde's ability to grow earnings year over year despite FX and broader economic uncertainty speaks to the strength and resiliency of its business models. As for the full year 2022, management raised its adjusted EPS range to $11.93 to $12.03 from $11.73 to $11.93. This new figure represents growth of 12% to 13% year over year or 17% to 18% excluding FX. This assumes outlook assumes zero economic growth. German delisting thoughts We also want to provide some follow up on a development we discussed on Tuesday's "Morning Meeting" for Club members. Linde management held a call Wednesday to explain the rationale behind its proposal to delist from the Frankfurt Stock Exchange. After listening to management, we continue to believe the long-term benefits of delisting from the German exchange outweighs any future noise and forced-selling that may occur from European fund managers and index funds. (Jim Cramer's Charitable Trust is long LIN. 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 liquid hydrogen tanker truck taking a fuel delivery at the Linde hydrogen plant in Leuna, Germany, on Tuesday, July 14, 2020.
Rolf Schulten | Bloomberg | Getty Images | 2022-10-27T18:47:11Z | www.cnbc.com | Linde's ability to manage inflation was on display in the industrial gas giant's strong quarter | https://www.cnbc.com/2022/10/27/lindes-ability-to-manage-inflation-was-on-display-in-the-industrial-gas-giants-strong-quarter.html | https://www.cnbc.com/2022/10/27/lindes-ability-to-manage-inflation-was-on-display-in-the-industrial-gas-giants-strong-quarter.html |
This year's market dips are an important reminder of why it's important to invest and save money simultaneously
The S&P 500 is down 20% YTD while interest offered by high-yield savings accounts have increased.
Elena Noviello | Moment | Getty Images
So far, 2022 has been a year of disappointing losses for those who are invested in the stock market. The S&P 500 is down about 20% year-to-date (TYD), leaving a bitter aftertaste for individuals who were feeling confident about portfolio gains coming out of 2020 and 2021. And while it's important to stay invested and uphold a long-term outlook, the market dips we've seen this year are a reminder of why it's important to have money invested in addition to cash savings.
While the stock market has shown losses in 2022, high-yield savings accounts have been increasing the interest rates they pay you on your balance. Some of the current highest rates have reached 3.50% APY. Of course, this still isn't enough to earn you life-changing money, but an untouched savings balance has still increased this year. Having a healthy mix of investments and savings could assuage any fears around affording large upcoming expenses without taking your money out of the market.
How much you should invest vs. save in cash
"This year has been a great example of why money for short-term needs should be held in cash in a high-yield account, not invested in the stock market," says Tony Molina, a CPA and Product Evangelist at Wealthfront. "Take your emergency fund, for example. That's money you're keeping for a rainy day — say an unexpected medical bill, house or car repair, or job loss — so you don't want that money to be subject to market volatility. No one wants to receive an unexpected medical bill only to find that your emergency fund is now less than you expected because the market had a bad day."
At the same time, Molina cautions against over-saving. It's important to ensure that a sizable chunk of your net worth is able to outpace inflation and typically, only keeping money in a savings account won't allow you to do that.
"Beware that there is such a thing as saving too much in cash," he says. "If you don't invest enough of your money, you won't be able to keep up with inflation. But you should only invest money that you don't expect to need in the next three to five years."
This way, you have a longer time horizon to rebound from any short-term market dips.
Of course, before you begin to invest, you'll want to make sure you have a fully funded emergency savings account. Having an emergency fund allows you to avoid selling your investments to pay for an unexpected expense, like a surprise car repair or a leaky roof. Experts typically recommend having three to six months' worth of savings stashed away in a high-yield savings account.
Select ranked LendingClub High-Yield Savings as the best overall account, as it offers a high APY and no monthly fees. Of course, there are a variety of options. The SoFi Checking and Savings offers new account openers a welcome bonus of up to $300, depending on how much money they deposit. Wealthfront also offers a a Cash Account with "savings buckets" that let you organize your savings goals while still earning interest on your balance.
LendingClub High-Yield Savings
LendingClub Bank, N.A., Member FDIC
No minimum balance requirement after $100.00 to open the account
Strong APY
Free ATM card and no ATM fees
$100 minimum opening deposit required, though there's no minimum balance after that
And when it comes to figuring out how much money to save versus invest, it's important to remember that it mostly depends on your budget and your personal goals. You want to make sure that your income can support the amount of money you'd like to save and invest each month.
"A good target in general is to save at least 10% of your income each month, but the percentage that you invest vs. save in cash should be based on your individual goals," Molina says.
If your goal is to buy a house in one to two years, you'll likely need to save more than you invest. On the other hand, if your goal is to just build wealth it probably makes sense to invest more money than you save. You just have to strike a balance between the two that works for you. If you need help pinpointing this balance, you can try speaking with a financial planner who can analyze your budget and goals and provide personalized recommendations. | 2022-10-27T18:47:30Z | www.cnbc.com | This Year's Market Dips Show Why You Should Be Investing And Saving | https://www.cnbc.com/select/market-dips-why-you-should-be-investing-and-saving/ | https://www.cnbc.com/select/market-dips-why-you-should-be-investing-and-saving/ |
quietly donated $400,000 to a conservative nonprofit last year as the group pushed back on antitrust bills being considered in Congress, according to documents reviewed by CNBC.
Carrie Lukas, the forum's president, said in a letter last year to House Oversight Committee chair Carolyn Maloney, D-N.Y., that the group "is proud to receive support from a variety of foundations, individuals of all income levels, and from a few corporations. The vast majority of our donors — 89% — are small, individual donors (under $5,000)." The letter was responding to question from Rep. Jackie Speier, D-Calif., a member of the Oversight Committee, seeking information on the group's funding.
In the article, a director at the group, Patrice Onwuka, name-checks Apple
, and Amazon, suggests the type of legislation could hurt consumers, and raves about the tech giants. "Big Tech is tremendously beneficial to consumers, small businesses, students, and voters," Onwuka writes.
In October 2021, Klobuchar and Sen. Chuck Grassley, R-Iowa, introduced another bill that would give antitrust agencies more ammunition to take on powerful tech companies. That bill, the American Innovation and Choice Online Act would prohibit tech companies from self-preferencing, or favoring their own products and services over competitors. That could affect how Amazon advertises its own products on its web site.
Another provision would prevent companies from offering certain benefits to businesses who purchase or use other products and services. This takes aim at Fulfillment By Amazon, a service where Amazon ships and stores goods for merchants who sell on its platform in exchange for a fee. FBA products are also eligible for speedy delivery, which means they can display the all-important Prime logo on their listing. Amazon launched the third-party marketplace in 2000, allowing everyone from small businesses that operate out of their garage to established brands to sell on its site. It's grown to become a cornerstone of Amazon's retail business, accounting for more than half of its online retail sales.
In December, Onwuka took aim at that legislation with an essay entitled, "Amazon Prime May Not Be Around To Save The Day Next Christmas." She wrote, "antitrust efforts such as this bill, are not protecting consumers, but reducing their choices and driving up prices."
The Independent Women's Forum was also among 30 organizations that co-signed an Oct. 2021 open letter to Senate lawmakers pushing back on antitrust legislation. "We urge you to reject any proposal that politicizes antitrust law or gives unelected bureaucrats even more power to control the economy," the letter reads.
In a statement to CNBC, Lukas, the group's president, confirmed to CNBC that Amazon supports their Center for Economic Opportunity, the department that regularly takes on antitrust proposals through authored columns, among other things. Onwuka is the Center for Economic Opportunity's director.
Yet, according to Shannon Wiley, a spokeswoman for South Carolina's secretary of state, the Independent Women's Forum sent the governing body their 990 form with the full, unredacted list of donors. South Carolina state law allows nonprofits themselves to remove the identity of their donors before filing it with the secretary of state. In this case, according to Wiley, this organization chose to send them the filing with the names of their top donors from 2021.
"The one on the website is the one that was filed by the organization Our office files the 990 that is submitted by the organization," Wiley said in an email. "The organization failed to redact Schedule B when it filed the 990 online," she added. After CNBC reached out to their office for comment, the secretary of state's office decided to remove the list of names revealing the identity of the donors, Wiley said.
Amazon's donation to the group is tied for the second-largest listed contribution in 2021, according to the document. The only other $400,000 donation listed on the form came from the foundation of the billionaire Walton family, whose wealth comes from Walmart
. The Charles Koch Foundation, a nonprofit founded by energy and manufacturing billionaire Charles Koch, is listed as giving $150,000.
The top donation to the Independent Women's Forum in 2021 was a $2.4 million check from the Diana Davis Spencer Foundation, a 501(c)(3) nonprofit chaired by philanthropist Diana Davis Spencer, which has donated millions of dollars toward conservative causes for years, according to the group's own 990 disclosure reports. Overall, the Independent Women's Forum raised over $6.7 million last year, an increase of more than $1 million from 2020, according to their 990.
The Independent Women's Forum's board chair and heiress to the Vicks VapoRub fortune, Heather Higgins, boasted at a private donor retreat that the organization is part of the "Republican conservative arsenal" and conceded that it's not neutral politically, according to reporting by the the Center for Media and Democracy.
Amazon is not the only big tech supporter to the group. In previous years, Facebook
have also been listed as the organization's sponsors for their annual galas, according to the events programs. Google has also listed the Independent Women's Forum as one of the outside organizations that "receive the most substantial contributions from Google's U.S. Government Affairs and Public Policy team," although it does not show an amount. | 2022-10-27T19:47:59Z | www.cnbc.com | Amazon quietly donated to nonprofit that opposed new antitrust bills | https://www.cnbc.com/2022/10/27/amazon-donated-to-nonprofit-that-opposed-new-antitrust-bills.html | https://www.cnbc.com/2022/10/27/amazon-donated-to-nonprofit-that-opposed-new-antitrust-bills.html |
Club holding Honeywell International (HON) reported solid third-quarter results before the opening bell Thursday, a sign of management's competent execution amid a myriad of macroeconomic headwinds. Revenue rose 9% year-over-year organically, to $8.95 billion, shy of analysts' expectations of $8.98 billion, according to estimates compiled by Refinitiv, a result of a stronger U.S. dollar. Adjusted earnings-per-share (EPS) of $2.25 outpaced the consensus forecast of $2.16 a share. The segment margin, similar to an adjusted operating income margin, expanded by 60 basis points year-over-year, to 21.8%, but fell short of analysts' forecasts of a 22.3% margin. Bottom line It was another great quarter from Honeywell, as management once again displayed an ability to deliver, despite supply chain constraints, multi-decade high inflation, geopolitical turmoil, rapidly rising interest rates and a persistently strong U.S. dollar. Profit margins expanded in every operating segment, operating cash flow was better than expected and Honeywell's adjusted free cash flow conversion ratio came in at 124%. Management raised its full-year EPS guidance for 2022, while saying it expects further sales- and earnings growth, along with continued margin expansion, next year. Despite the macro challenges, Honeywell's backlog remains strong due to solid demand and resilient end markets. Those factors, combined with management's solid execution, mean we continue to like Honeywell's stock and reiterate our 1 rating . Shares of Honeywell were trading up 3.74% in midday trading, at $197.4 a share. Companywide Q3 results The backlog at the end of the quarter — agreements for sales to be realized in future periods — increased 9% year-over-year, to $29.1 billion. Third-quarter operating cash flow jumped by 86% year-on-year, to $2.1 billion, while free cash flow soared by 108%, to $1.9 billion, compared with Wall Street expectations of $1.87 billion and $2 billion, respectively. The company cited "strong collections and continued focus on matching supply to demand," allowing Honeywell to reduce inventory for the first time in seven quarters. As a result of the robust cash flow and Honeywell's strong balance sheet, management was able to deploy roughly $1.2 billion into share repurchases, dividends and capital expenditures. Segment Q3 results Aerospace Sales rose 9% year-over-year, to $2.98 billion, ahead of the $2.92 billion predicted by analysts. Organic sales growth increased 10% year-over-year. Operating income climbed more than 10% year-over-year, to $818 million, beating estimates of $780 million. The segment margin climbed 40 basis points on an annual basis, to 27.5%. Within the segment, we saw a 30% organic increase in Commercial Aviation Original Equipment, a 24% organic increase in Commercial Aviation Aftermarket and a 10% organic decline in Defense and Space. Honeywell Building Technologies Sales rose 11% year-over-year, to $1.53 billion, below analysts' forecasts of $1.55 billion. Organic sales growth was up 19% compared with the same period last year. Operating income jumped by 14% year-over-year, to $368 million, slightly below the $370 million consensus estimate. The segment margin expanded 60 basis points year-over-year, to 24.1%. Within the segment, we saw a 23% organic increase in Products and a 13% organic increase in Building Solutions. Performance Materials and Technologies Sales rose 8% year-over-year, to $2.72 billion, largely in line with analysts' forecasts of $2.71 billion. Organic sales growth was up 14% on an annual basis. Operating income climbed 10% year-over-year, to $615 million, ahead of the $607 million consensus estimate. The segment margin grew by 40 basis points year-over-year, to 22.6%. Within the segment, we saw a 6% organic advance in UOP that was compounded by a 6% organic increase in Honeywell Process Solutions and a 33% organic increase in Advanced Materials. Safety and Productivity Solutions Sales fell by 7% year-over-year, to $1.73 billion, below analysts' forecasts of $1.83 billion. Organic sales growth was down 4% year-over-year. Operating income rose by 10.6% year-over-year, to $271 million, slightly ahead of $270 million predicted by analysts. The segment margin soared by 250 basis points on an annual basis, to 15.7%. Within the segment, a 3% organic increase in Sensing and Safety Technologies and a 2% organic increase in Productivity Solutions and Services was more than offset by a 15% organic decline in Warehouse and Workflow Solutions. Guidance Looking ahead, management provided both fourth-quarter and full-year 2022 guidance updates. Honeywell now forecasts sales of $9.1 billion to $9.4 billion in the fourth quarter, compared with Wall Street expectations of $9.27 billion. Management expects fourth-quarter EPS between $2.46 to $2.56, compared with a consensus figure of $2.54 a share. The overall segment margin is expected to come in between 22.8% and 23.2%, versus a 22.9% consensus estimate. For the full year, management slightly reduced their sales outlook to be in a range of $35.4 billion to $35.7 billion, from $35.5 billion to $36.1 billion, a result of foreign exchange headwinds. That compares with a consensus forecast of $35.6 billion. However, despite the weaker-than-expected topline guide, management raised the low end of their full-year adjusted earnings-per-share forecast to a range of $8.7 to $8.8, up from $8.55 to $8.8, compared with analysts' forecasts of $8.65 a share. The full-year segment margin is now expected to come in between 21.6% and 21.8%, up from a previous range of 21.3% to 21.7% — 60 to 80 basis points higher than a year ago. The new margin guidance still falls short of the 21.9% predicted by Wall Street. The company reaffirmed full-year free cash flow guidance, targeting a range of $4.7 billion to $5.1 billion, compared with the $4.95 billion consensus estimate. Management also provided some preliminary thoughts on 2023, saying Honeywell expects organic growth in Aerospace, Performance Materials and Technologies and Honeywell Building Technologies, due to record levels of demand and a robust backlog. Additionally, the team expects 2023 to deliver overall sales growth, margin expansion and adjusted earnings and free cash flow growth, despite the volatile operating environment. Lastly, management said they "have significant balance sheet capacity for meaningful M & A and expect a favorable deal environment going into 2023, which supports our commitment to accelerate capital deployment." (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.
An aircraft engine is being tested at Honeywell Aerospace in Phoenix.
Club holding Honeywell International
(HON) reported solid third-quarter results before the opening bell Thursday, a sign of management's competent execution amid a myriad of macroeconomic headwinds. | 2022-10-27T19:48:11Z | www.cnbc.com | Honeywell navigates economic pressures to deliver Q3 earnings beat | https://www.cnbc.com/2022/10/27/honeywell-navigates-economic-pressures-to-deliver-q3-earnings-beat.html | https://www.cnbc.com/2022/10/27/honeywell-navigates-economic-pressures-to-deliver-q3-earnings-beat.html |
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