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Macro hedge funds to dump $45 billion in equities, says Morgan Stanley 2024-07-26 05:54:00+00:00 - By Carolina Mandl NEW YORK (Reuters) - Computer-driven macro hedge fund strategies on Wednesday sold $20 billion in equities and are set to shed at least more $25 billion over the next week after the stock rout, in one of the largest risk-unwinding events in a decade, Morgan Stanley said in commentary to institutional clients on Thursday. After disappointing earnings reports from Tesla and Alphabet, investors heavily ditched stocks on Wednesday, with the tech-heavy Nasdaq Composite dropping 3.6% in its worst day since October 2022. "The volatility of the last two weeks started out being very rotational," said the bank, referring to a recent investors' rotation to small- from mega caps. "But that has now morphed into a broad index deleveraging (on Wednesday)." If volatility persists in the coming days, the sell-off would rapidly increase, Morgan Stanley said in their commentary, declining to comment further. An additional 1% day-drop in global equities could spark sales of $35 billion and macro hedge funds could dump up to $110 billion in a 3% day fall. The main U.S. stock indexes were positive on Thursday afternoon, after stronger-than-expected GDP data. James Koutoulas, chief executive officer at hedge fund Typhon Capital Management, told Reuters that even after Wednesday’s sell-off, momentum stocks remain trading above their intrinsic value. Historically, he said interest rate hikes have been followed by economic downturns. "It seems like investors are betting on bucking that trend," he said in a note to clients. Hedge funds are turning more bearish, as they are mainly reducing their long positions, or bets stocks will rise, while keeping, and in some cases increasing, bets on shares they believe will fall, according to Morgan Stanley. Portfolio managers mostly sold shares in the information technology, consumer staples and material sectors. Goldman Sachs also said its clients increased short positions in the so-called macro products, such as large cap and corporate bond exchange traded funds (ETFs). PERFORMANCE Following the market bloodbath, hedge funds' performance ended Wednesday in the red, although overall they were able to pare losses compared to the main stock indexes. Global hedge funds fell 0.67% on average, according to Morgan Stanley, with equities long/short hedge funds in Americas down the most, 1.04%. The MSCI All Country World fell 1.67% on Wednesday, while the S&P 500 was down 2.31%. "Hedge funds are in the middle of the worst drawdown of an otherwise positive year," said Mario Unali, head of investment advisory at Kairos Partners. Story continues (This story has been corrected to fix James Koutoulas’ comments to reflect he said that stocks remain trading above their intrinsic value, not overweight, in paragraph 6) (Reporting by Carolina Mandl, in New York; editing by Diane Craft)

Stock market news today: Nasdaq, S&P 500 slide into the close, capping volatile day on Wall Street 2024-07-26 05:51:00+00:00 - US stocks attempted an unsuccessful rebound on Thursday as the Nasdaq and S&P 500 added to Wall Street's latest Big Tech sell-off, fueled by concerns the artificial intelligence trade could be losing steam. The Nasdaq Composite (^IXIC), which wobbled between losses and gains throughout the trading day, closed down about 0.9% after coming off the worst day for the tech-heavy index since October 2022. The benchmark S&P 500 (^GSPC) dropped 0.5%, while the Dow Jones Industrial Average (^DJI) remained the only major index in the green, up a modest 0.2%. Stocks are running into a wall as Wall Street starts to question when tech companies' huge investments in AI will start to pay off. Unimpressive earnings from Alphabet (GOOGL, GOOG) and Tesla (TSLA) earlier in the week have dented hopes that Big Techs can live up to their AI-fueled sky-high valuations. At the same time, concerns about the robustness of the US economy are emerging as big-name earnings misses cast doubt on how consumers are holding up in the face of historically high borrowing costs. Given that, traders are now pricing in bigger cuts by the Federal Reserve — a reduction of about 30 basis points by September, and of almost 70 basis points over 2024, according to money markets. Odds on an earlier-than-expected rate cut in July have also ticked up, CME FedWatch data showed. Read more: 32 charts that tell the story of markets and the economy right now Still, an advance estimate of gross domestic product (GDP) showed the US economy grew at an annualized pace of 2.8% during the second quarter. That was well above the 2% growth expected by economists surveyed by Bloomberg. The Personal Consumption Expenditure Price Index update for July on Friday will give the Federal Reserve another data point to consider regarding rate cut timing.

Edwards Lifesciences Stock Plummeted Today. Here's Why 2024-07-26 05:23:00+00:00 - Pavlo Gonchar / SOPA Images / LightRocket via Getty Images Key Takeaways Edwards Lifesciences cut sales-growth estimates for its biggest source of revenue, a heart valve replacement treatment. The heart disease and critical care monitoring company also missed expectations with its second-quarter earnings. Edwards Lifesciences stock lost almost a third of its value on Thursday, the worst performer in the S&P 500. Edwards Lifesciences (EW) shares swooned Thursday, dropping after the company damped expectations for heart valve replacement sales growth on Wednesday. The company said it expects full-year sales growth of 5% to 7% for its transcatheter aortic valve replacement (TAVR) treatment, down from the 8% to 10% forecast earlier. TAVR involves replacing a diseased heart valve using a catheter rather than through open-heart surgery. Full-year sales of transcatheter mitral and tricuspid therapies (TMTT) are expected to come in on the higher end of Edwards’ previously issued range of $320 million to $340 million. The company reiterated its surgical sales growth projection of 6% to 8%. Shares of Edwards plunged 31% to finish at $59.76 Thursday, leaving them down about 22% this year. The stock was the day's worst performer in the S&P 500. In the second quarter, Edwards posted earnings per share (EPS) of 61 cents, falling short of the 74 cents expected by analysts, according to Visible Alpha. Revenue was $1.39 billion, below expectations. TAVR revenue rose 5% year-over-year to $1 billion. Read the original article on Investopedia.

CrowdStrike CEO Involved In Another Global Tech Disaster Years Ago? Unbelievably, Yes 2024-07-26 04:00:00+00:00 - CrowdStrike CEO Involved In Another Global Tech Disaster Years Ago? Unbelievably, Yes George Kurtz, the CEO of cybersecurity firm CrowdStrike, is under the spotlight for a massive tech failure. Last Friday, a faulty update from CrowdStrike caused a worldwide tech outage that disrupted banks, airlines, retailers, and more. Shockingly, this isn’t Kurtz’s first rodeo with a tech catastrophe. Don't Miss: From 2009 to 2011, Kurtz was the Chief Technology Officer at McAfee, another major name in cybersecurity. In 2010, McAfee released a flawed update that mistakenly identified a critical Windows file, “svchost.exe,” as a virus. This critical error crashed millions of computers and got them stuck in reboot loops. Just like last week, the only fix was a manual intervention, and similarly, that whole debacle created chaos for countless users and businesses. See Also: Don’t miss out on the next Nvidia – you can invest in the future of AI for only $10. The Ripple Effects Of The CrowdStrike Update Mess The impact of CrowdStrike’s faulty update was massive. According to Business Insider, major airlines like American, United, and Delta had to ground flights, leaving thousands of passengers stranded and causing travel chaos. European airlines, like Ryanair, also faced big delays and told passengers to arrive early to deal with the mess. The UK’s National Health Service (NHS) reported issues with appointment and patient record systems, even canceling medical procedures and appointments. In Germany, hospitals were forced to also cancel elective operations, adding to the strain on health care providers already dealing with other pressures. Retail operations were not spared either. Some Speedway gas stations in the U.S. had to close because digital gas pumps failed, and others could not accept payments. Trending: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100. Why Did This Happen? CrowdStrike is actively working with customers impacted by a defect found in a single content update for Windows hosts. Mac and Linux hosts are not impacted. This is not a security incident or cyberattack. The issue has been identified, isolated and a fix has been deployed. We... — George Kurtz (@George_Kurtz) July 19, 2024 The root cause of the disaster was a defect in a single update for Windows provided by CrowdStrike that led to widespread system failures. The issue was not the result of a cyberattack but rather a critical flaw in the update’s coding. When released, it triggered a series of malfunctions in less than 1% of Windows machines. Story continues Despite the relatively small percentage, the number of systems affected was enough to create global chaos. In response to Kurtz’s tweet, one Twitter user pointed out how little it takes to “bring down half the computers around the world.” CrowdStrike’s immediate response included identifying the issue, isolating it, and deploying a fix. However, Microsoft stated that some users fixed their problems by rebooting the system 15 times. CrowdStrike’s admission that such a huge error was not caught during testing has raised serious questions about its internal processes and safeguards. Trending: Rory McIlroy’s mansion in Florida is worth $22 million today, doubling from 2017 — here’s how to get started investing in real estate with just $100 History Repeating Itself This incident has brought George Kurtz’s past into sharp focus. In 2010, as McAfee’s CTO, Kurtz was at the helm during another significant tech failure. The problem was eerily similar, and the fallout was substantial, with McAfee facing severe criticism and a loss of customer trust. Since Thursday, the day before the outage, CrowdStrike stock has lost around 21% of its value, and Kurtz’s net worth plummeted from $3.2 billion to $2.6 billion on Wednesday, the 24th, according to Forbes. Given this history, many are now wondering how Kurtz, with all his experience, let something like this happen again at CrowdStrike. The company has promised to investigate thoroughly to determine how the mistake happened and to implement measures to prevent it. However, fixing the damage to its reputation might take a while. Read Next: "ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now! Get the latest stock analysis from Benzinga? This article CrowdStrike CEO Involved In Another Global Tech Disaster Years Ago? Unbelievably, Yes originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Why Ford Motor Company Stock Crashed 17% Today 2024-07-26 03:14:00+00:00 - Stock of Ford Motor Company (NYSE: F), one of America's Big Three automakers, collapsed 16.7% through 12:45 p.m. ET Thursday after the company reported a huge earnings miss last night. Analysts had forecast Ford would earn $0.68 per share on $44 billion in Q2 sales. While Ford exceeded the revenue number easily, with $47.8 billion in quarterly sales, profits came in short of expectations at just $0.47 per share. Ford's Q2 earnings decline Not all the news was bad. Ford sold 1.14 million vehicles in this year's Q2, 23,000 more than last year's Q2. Revenue rose 6% year over year. Operating cash flow grew 10%, to $5.5 billion, as did automotive free cash flow, rising to $3.2 billion, and Ford remained profitable on the bottom line. Still, profits per share shrank by $0.01, instead of growing with growing sales, and the reason was profit margins. Ford's net profit margin contracted by 40 basis points, to 3.8%. Management explained the hit to profits came mostly "from an increase in warranty reserves," but that it hopes to work that number down "though efforts to lift the quality of new products." In other words, this was an earnings miss entirely of Ford's own making. If it built better-quality vehicles, they wouldn't break as often -- and Ford wouldn't so much lose money from having to repair broken trucks under warranty. Is Ford stock a sell? Still and all, Ford management put a happy face on its results, saying the company should end up with "solid" results by year-end. The company forecasts pre-tax profit of anywhere from $10 billion to $12 billion, and automotive free cash flow in the $7.5 billion to $8.5 billion range. With Ford stock currently valued at about $47.4 billion, that works out to a price-to-free cash flow ratio of about 5.9x, which hardly seems expensive -- especially when you consider that Ford stock is paying a 5.7% dividend yield! Assume any positive earnings growth at all, and it's hard to see Ford stock as anything but a buy at today's prices. Should you invest $1,000 in Ford Motor Company right now? Before you buy stock in Ford Motor Company, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ford Motor Company wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $700,076!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Story continues See the 10 stocks » *Stock Advisor returns as of July 22, 2024 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Ford Motor Company Stock Crashed 17% Today was originally published by The Motley Fool

Here's why Southwest is assigning seats — and what it means for customers 2024-07-25 22:00:00+00:00 - Southwest Airlines is putting an end to its open seating policy Southwest Airlines is putting an end to its open seating policy 02:13 Southwest will start selling assigned seats, marking a major shakeup of a signature policy that has set the low-cost carrier apart from airlines for half a century. The new policy, announced Thursday, will make flying Southwest look and feel remarkably different for customers. The shift will affect how customers of the discount carrier select seats and board planes. Southwest passengers, including longtime fans of the open seating policy, will also be able to choose different types of seats for a price, including those offering more legroom. These changes could affect ticket costs across the board, according to experts, although Southwest has not addressed pricing or indicated that regular seat costs will change. Some experts are cheering the move, saying it amounts to an improvement for both passengers and the airline. "Southwest's decision to start assigning seats and plan to add extra-legroom seats prove an old dog can learn new tricks," Henry Harteveldt, president of Atmosphere Research Group, told CBS News. "It will make their flights more orderly and comfortable. And it should also improve the airline's bottom line as well." Southwest will begin selling tickets with assigned seats beginning in 2025. The airline will reveal additional details around changes to the flight boarding process in September. Here are three ways flying Southwest could change. Assigned seats Southwest is ending its open seating policy, in which customers find a cabin seat on a first-come, first-serve basis. When the changes go into effect next year, customers will purchase tickets with assigned seating, eliminating some of the stress associated with the current boarding process. "It's a pretty big change for Southwest, which always had an open seating system, and you had to run into the cabin and try to find the seat you want," Clint Henderson, managing editor of The Points Guy, told CBS MoneyWatch. Henderson said this turned off some business travelers like himself from choosing to fly Southwest, and he predicted the change could attract a new crop of customers to the airline. "Many business travelers don't want to fight for a seat and deal with the drama that sometimes entails," Henderson said. Tensions can run high on airplanes too, with testy passengers quibbling over limited and sometimes shared real estate. "Since the pandemic, airline passengers may be less cordial and less amicable," said airline customer experience analyst Marbue Brown. "There are certainly benefits to environments where there is no ambiguity about who owns a seat." Some seats will have more leg room In addition to assigned seats, Southwest will introduce premium seating, offering passengers extended legroom on one-third of a cabin's seats. Southwest already lets customers pay to be first in line to board aircraft, "but this is a much bigger change now, with premium seats available for purchase," Going.com's Keyes said. The airline is likely responding to travelers' penchant for more premium travel experiences following the pandemic, according to Keyes. "The demand is for premium economy, business class and better seats, which Southwest doesn't have to offer," he said. Southwest's seats already offer more legroom than traditional carriers', which has been a selling point for the airline. They come with 32 inches of space, versus the industry standard of 30-31 inches. It's possible Southwest's new cabin configuration could shrink its current standard of 32 inches of space, some experts said. "They haven't announced the new cabin design, but the most likely outcome is we're going to see that 32 inches of legroom to start to shrink for main cabin, and for it to be more like 31 or 30," Scott Keyes, founder of Going.com, told CBS MoneyWatch. "That's normal for people who are used to flying American or United, but cramped for people who fly Southwest." Price changes The new cabin configurations could drive up ticket prices across the board because Southwest's aircraft might contain fewer number of total seats, industry analysts said. On the other hand, the dramatic policy changes could be price-neutral, depending on how Southwest redesigns its plane cabins. "Some folks will pay more for extra legroom, and, based on how you reconfigure planes, you might not have to raise prices on other seats," Brown said. What remains to be seen is whether Southwest will introduce a bare-bones, basic economy-type offering. Currently, all tickets come with free checked bags and free changes. "But might they start to offer an economy package that includes more restrictions on baggage? That's something we'll have to wait and see," Keyes said.

Crew mistakes and inadequate safety standards led to the crash that destroyed a $450 million B-1B bomber, an Air Force probe found 2024-07-25 21:41:47+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview A B-1B Lancer valued at more than $450 million that crashed in South Dakota at the start of this year missed the runway by 100 feet, a mistake accident investigators attributed to the aircrew's shortcomings as well as the poor training culture within units at Ellsworth Air Force Base . The scathing crash investigation report shared with Military.com pointed to "failure to perform standard crew resource management," along with adverse weather conditions, ineffective flying operations supervision, lack of awareness, and "an unhealthy organizational culture that permitted degradation of airmanship skills" as contributing factors in the January 4 crash. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. That incident led Ellsworth to temporarily close down its runway and relocate roughly 250 crew members and Lancers to Dyess Air Force Base near Abilene, Texas. The B-1B Lancer, which was on a training mission, crashed roughly 100 feet shy of the runway, skidded more than 5,000 feet down the tarmac, and was then engulfed in flames from the crash. Advertisement The charred remains of the B-1B Lancer after it crashed near the runway of Ellsworth Air Force Base. US Air Force Aircraft Accident Investigation Board The four crew members all ejected, but two of them suffered injuries as a result. Both were medically treated and later released, according to Air Force Global Strike Command, which commissioned the crash investigation report. The Lancer was destroyed, and the damage to the aircraft and the runway was estimated to be more than $456 million. Related stories The report also points out that one crew member who was injured during the ejection was not wearing all the proper flight equipment. And the other injured crew member's weight was reportedly above both the ejection seat's recommended limit of 211 pounds and the Air Force's recommendation of 245 pounds. They weighed in at nearly 260 pounds during medical treatment, which "likely contributed to the severity of the injuries noted from the mishap." The B-1B was performing a training mission with another Lancer aircraft on January 4 when both came in for low-visibility approaches toward the runway with low cloud cover. The first aircraft landed successfully amid dense fog, while the second Lancer came up short due to "a failure by the crew to properly manage the aircraft's airspeed and angle of approach," Air Force Global Strike Command detailed. Advertisement Aircrew members prepare a B-1B Lancer for deployment at Ellsworth Air Force Base at night. US Air Force photo by Staff Sgt. Jake Jacobsen "Changes in local wind direction during landing should have prompted the crew to adjust throttles and maintain proper airspeed, but a lack of situational awareness and ineffective crew communication resulted in the aircraft falling below-required airspeed to maintain a safe approach," the command said. Col. Erick Lord, the accident board investigation president, pointed to the crew's shortcomings and harped on the one crew member's weight as examples of larger cultural problems within Ellsworth Air Force Base's 34th Bomb Squadron and the 28th Operations Support Squadron. "The preponderance of the evidence revealed an ineffective and unhealthy culture, which directly contributed to the mishap," he wrote. "Specifically, the [34th Bomb Squadron's] overall lack of discipline, inadequate focus on basic airmanship skills, and failure to properly identify and mitigate risk, coupled with the [28th Operations Support Squadron's] ineffective communication, inadequate program management, and lack of supervisory oversight, set conditions that allowed this mishap to occur by directly leading to the mishap's cause and its three non-weather-related, substantially contributing factors." An aircrew member directs a B-1B Lancer onto the runway at Ellsworth Air Force Base in South Dakota. US Air Force photo by Airman 1st Class Dylan Maher Retired Col. JF Joseph, a Marine Corps pilot who is now an aviation consultant and expert witness, told Military.com in an interview that those crew members could receive any variety of punishment or administrative actions in the wake of the report but noted that the statements about safety culture at the base are significant. Advertisement "There appears to be some degree of supervisory error that they're making comments on, and the basis for that is predicated on what we call safety culture," the former aviator said. "It sounds like what they looked at was essentially a top-to-bottom review, but it really seems as though they're focusing on the culture aspect of it." Air Force Global Strike Command said the chain of command is "in the process of responding to the report and taking the appropriate corrective actions."

2 lions made a mile-long swim across a crocodile-infested channel in search of mates. It's a sign of how desperate the animals are getting. 2024-07-25 21:34:07+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Two lions recently proved that there's no river wide enough to keep them from potential mates. In February, the pair of brothers, Jacob and Tibu, swam for nearly a mile across a channel between two lakes in Uganda's Queen Elizabeth National Park. They had to turn back several times because the water was likely full of crocodiles, according to Alexander Braczkowski, a conservation biologist with Griffith University who filmed the animals' epic swim. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Not only is this the longest swim for lions on record, but one of the brothers, Jacob, previously lost a leg when a poacher's trap caught his foot, making his feat all the more impressive. Advertisement "We didn't know lions could do this," Braczkowski, told Business Insider in an email. Lions will wade or swim short distances, he said, "but nothing like what you see in the video." The males were likely seeking out lionesses, Braczkowski and his fellow researchers reported in a recent paper in the peer-reviewed journal Ecology and Evolution. Though the brothers made it to the channel's other side, it's unclear if they reached their goal of mating. Advertisement Jacob, the lion with three legs, is a survivor Jacob lost a limb when a poacher's snare trapped his foot. Alexander Braczkowski Competition for mates is fierce because the lion population in the area has been cut in half in the past five years, Braczkowski said. Only 39 remain, with roughly two males for every female, New Scientist reported. In a healthy lion population, that ratio would be flipped. Related stories An estimated 60,000 people live in the park, which has contributed to the decline in the animals' numbers. "The main stressor is people," Craig Packer, founder and director of the University of Minnesota's Lion Center who was not involved in the research, told Business Insider. The lions hunt livestock and are killed in retaliation, he said. Jacob is a reflection of the tension between humans and lions. Not only did he lose a limb, but poachers poisoned his family. And unrelated to humans, he also survived a buffalo goring. Advertisement "Jacob is a true symbol of the challenge lions face in Uganda but also their immense resilience," Bosco Atukwatse, a co-author of the paper, said. A coalition of lions It's common for two male lions who grew up together to become life-long companions. Alexander Braczkowski Despite what Disney's "The Lion King" taught many of us about brotherly dynamics between the big cats, the close relationship between Jacob and Tibu is pretty typical. "Lions are the only social cat," Packer said. Female lions live in prides, and they often give birth at the same time, Packer said. They raise their cubs together in a type of lion nursery, called a crèche. Male cubs who grow up together, whether they're brothers or cousins, will stay together their whole lives in what's known as coalitions. "A coalition of two is not at all unusual," Packer said. Advertisement In fact, it's pretty necessary for their survival, Packer said. "It's scary being a male lion if you don't have a partner," he said. "And so you really need to look after your partner." Just the roar of a second lion might be enough to chase off any competition for territory from other male lions. And when it does come down to a fight, Jacob probably wouldn't be all that helpful to Tibu, Packer said, "but he's still better than nothing."

Cold storage giant Lineage raises $4.4 billion in largest IPO of 2024 2024-07-25 21:30:05+00:00 - Cold storage leader Lineage just had the biggest IPO of 2024. It boasts a valuation of $19 billion, Bloomberg reported. Once obscure, cold storage has grown in demand in recent years. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement Cold-storage leader Lineage just clinched the largest public offering of the year. The Michigan-headquartered logistics giant sold 57 million shares Wednesday at $78 apiece, raising a total of $4.4 billion. It initially pegged share prices between $70 and $82. Lineage — which has 480 warehouses across North America, Europe, and the APAC region — now boasts a market value of $19 billion, according to Bloomberg. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .

NY fights to save Trump hush-money sentencing, saying it's a harmless error if evidence he's immune from entered the case 2024-07-25 21:21:22+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Manhattan prosecutors are fighting to keep Donald Trump's September 18 hush-money sentencing on track, saying in a new filing Thursday that it was "harmless error" if evidence he's now immune from entered the case. Trump's recent US Supreme Court immunity victory "has no bearing on this prosecution," lawyers for District Attorney Alvin Bragg argue in a 69-page court filing. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. "That holding has no bearing here because, as defendant does not dispute, the charges in this case all involve purely personal conduct, rather than official presidential acts," the filing says. But Trump would have been indicted and convicted even if evidence the defense calls "official" were removed, the filing adds. Advertisement Trump was indicted in April, 2023, and convicted in May, 2024, on 34 felony counts of falsifying business records. Trump falsified 34 Trump Organization records throughout 2018 in order to hide hush money he paid to porn actor Stormy Daniels as part of a conspiracy to illegally influence the 2016 election. The DA's filing is a response to defense arguments that prosecutorial immunity voids not just his conviction, but the hush-money indictment in its entirety. The SCOTUS decision found that using official-act evidence in prosecuting a current or former president violates their constitutional rights. Related stories The defense argued the grand jurors who voted to indict Trump and the trial jurors who voted to convict him were all shown significant evidence involving Trump's official acts, and that this evidence is now retroactively inadmissible. Donald Trump at his arraignment, with Manhattan District Attorney Alvin Bragg seated behind him. Reuters/Jane Rosenberg On Thursday, Bragg responded in papers signed by Matthew Colangelo, an assistant district attorney who was a lead prosecutor on the case. Advertisement The filing argues that Trump is wrong in now stamping much of the prosecutor's case "official act evidence." The defense is challenging four incriminating 2018 tweets shown to jurors from Trump's personal Twitter account, in which he referred private payments to Daniels by his then-personal attorney, Michael Cohen. But these tweets describe unofficial acts unrelated to Trump's official duties, and for which he has no immunity, the prosecution filing now argues. "Trump was not performing, or even describing, any official presidential act in conveying his personal opinions about his personal attorney and a private nondisclosure agreement entered into prior to his Presidency," the filing says of the four tweets. "No Presidential decision-making was involved." The defense is also challenging trial testimony by Hope Hicks, Trump's former White House communications director, who described an incriminating 2018 Oval Office conversation in which Trump expressed relief that Daniels' claims to a one-night sexual encounter surfaced only after the 2016 election. Advertisement But this conversation again involved a hush-money scheme that "was entirely personal and largely committed before the election, and it had no relationship whatsoever to any official duty of the presidency," the prosecution filing continues. Additional challenged evidence — an incriminating government ethics form Trump signed in 2018, and snippets of trial testimony by Cohen and by Madeleine Westerhout, Trump's former White House assistant — all likewise concerned private, not presidential, matters, prosecutors argue. But even if the challenged evidence was removed from the trial, "the error was harmless in light of the overwhelming evidence of defendant's guilt," the filing argues. As for tossing the underlying indictment — a move that would take Trump off the hook entirely — the prosecution filing argues that Trump would have been indicted even without what the defense calls "official act" evidence. Advertisement The submission of some inadmissible evidence during the grand jury presentation "is held to be fatal only when the remaining legal evidence is insufficient to sustain the indictment," the filing says, quoting caselaw from 1996. Still, "the indictment in this case was not 'based on' any evidence of immune conduct," prosecutors argue. Lawyers for Trump did not immediately respond to requests for comment on the prosecution filing. The trial judge, state Supreme Court Justice Juan Merchan, has said he will issue a written decision on September 6 on whether the indictment and conviction survive this challenge. Advertisement If they do, Trump will be sentenced September 18 as planned, the judge has said.

Dexcom shares plummet almost 40% after company misses on revenue, lowers guidance 2024-07-25 21:13:00+00:00 - The Dexcom logo is seen on a smartphone screen and in the background. Shares of Dexcom tumbled almost 40% in extended trading Thursday after the diabetes management company reported disappointing revenue for the second quarter and offered weak guidance. Here's how the company did: Earnings per share: 43 cents adjusted vs. 39 cents expected by LSEG 43 cents adjusted vs. 39 cents expected by LSEG Revenue: $1 billion vs. $1.04 billion expected by LSEG Dexcom's revenue increased 15% from $871.3 million a year earlier, according to a release. The company reported net income of $143.5 million, up from the $115.9 million in the same period last year. For the third quarter, Dexcom expects revenue of $975 million to $1 billion to account for "certain unique items impacting 2024 seasonality," the release said. Dexcom updated its full fiscal year guidance and now expects revenue of $4 billion and $4.05, down from the $4.20 billion to $4.35 billion it forecast last quarter. Dexcom offers a suite of tools like continuous glucose monitors (CGMs) for patients that have been diagnosed with diabetes. On the earnings call, Dexcom CEO Kevin Sayer attributed the challenges to a restructuring of the company's sales team, fewer new customers than expected and lower revenue per user. Some of the shortfall had to do with customers taking advantage of rebates for the new CGM called the G7. Additionally, the company said it underperformed in the durable medical equipment (DME) channel. "The DME distributors remain important partners for us in our business, and we've not executed well this quarter against these partnerships," Sayer said on the call. "We need to refocus on those relationships." In March, Dexcom announced its new over-the-counter CGM called Stelo had been cleared for use by the U.S. Food and Drug Administration. Stelo is designed for patients with Type 2 diabetes who do not use insulin. Dexcom said Thursday it will officially launch in August. Prior to Thursday's close, Dexcom shares were down 13% for the year, while the S&P 500 is up 13% over that stretch. At the beginning of the Q&A portion of the earnings call, JPMorgan analyst Robbie Marcus asked for more details on the substantial drop in guidance, expressing "shock" at how much disruption could be caused by a change in the structure of the sales force. "I feel like there has to be more going on," Marcus said, and asked whether the surging popularity of GLP-1 weight-loss treatments is having an impact. Sayer responded by saying the company is "short a large number of new patients as to where we thought we would be at this point in time." He said the sales force reshuffling, which led to changes in geographic coverage, was more dramatic than expected as physicians were now dealing with different reps. With respect to the DME struggles, Sayer said the company lost customers "who have the highest annual revenue per year." And he added that G7 rebate eligibility was three times faster than over the prior product, the G6. Jereme Sylvain, Dexcom's finance chief, said all that adds up to a $300 million shortfall in the company's guidance for the year at the top end. "Certainly not something we're happy about," Sylvain said. He said that in the interest of "full transparency," the company needed to provide clarity "about what the impact is for the balance of the year." WATCH: Dexcom CEO Kevin Sayer

A small, low-cost airline you may not have heard of just announced 18 new routes and its first international destinations 2024-07-25 21:06:49+00:00 - Avelo Airlines launched in 2021. On Wednesday, the airline announced 18 new routes with prices starting at $52. The new routes include Avelo's first international routes to Jamaica and Mexico. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement Avelo Airlines announced plans for 18 new routes this fall, including its first two international destinations, for as low as $52 one-way. It's impressive growth for the Texas-based low-cost carrier that only started flying in 2021. "The expansion we are announcing today is the most substantial in our airline's three-year history," Avelo Airlines founder and CEO Andrew Levy said in a press release. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .

What's Next For Spotify? More Price Hikes Could Be Coming After Strong Q2 Performance - Spotify Technology (NYSE:SPOT) 2024-07-25 21:00:00+00:00 - In Tuesday’s second-quarter earnings call, Spotify Technology SA‘s SPOT CEO Daniel Ek and interim CFO Ben Kung hinted at the possibility of future price increases, despite not providing a concrete timeline. This comes on the heels of substantial hikes in 2023 and 2024, where the price of an individual plan in the U.S. rose from $9.99 to $11.99 per month. See Also: Spotify Smashes Gross Margin Guidance, Analysts Expect ‘Continued Momentum’ Subscribers Stay Despite Price Hikes Spotify’s strategic decision to raise prices did not result in subscriber loss or revenue decline. In the second quarter of 2024, Spotify added 7 million new subscribers, surpassing its own expectations by 1 million. The company reported a revenue of €3.8 billion ($4.15 billion), marking a 20% year-over-year increase. These gains helped Spotify swing from a €247 million ($269 million) operating loss in Q2 2023 to a €266 million ($290 million) operating profit in Q2 2024. According to Billboard, Ek said that the company saw “less churn in this round of increases than we did in our prior one, which was already very low by any measure.” Kung added that churn rates following the recent price hikes were “better than expected.” Enhanced Value and Retention Ek attributes the low churn rates to the enhanced value Spotify has delivered over the years. The streaming giant has evolved into a comprehensive audio platform, adding popular features like the year-end Wrapped recap and Discovery Weekly playlists. The company’s significant investments in podcasts and audiobooks have also broadened its appeal. Ek added: “Access to all of this content would cost a user approximately $26 — significantly more than a Spotify subscription. Spotify remains a pretty outstanding deal.” Engagement Fuels Future Increases Subscriber engagement remains crucial for Spotify’s strategy. Kung noted: “The most important thing in the near term is just making sure that audiobooks are driving incremental engagement for the platform, and we're seeing this happening in a way that makes us feel good about the path that we're on here.” Ek also suggested that developing markets, which currently favor ad-supported listening, show high engagement levels that could justify future price increases. “The high engagement in [developing] markets gives us tremendous confidence in our ability to raise prices,” he said. The HiFi Experience Spotify is also targeting a subset of subscribers willing to pay more for an enhanced experience. After initially announcing a high-quality audio tier called HiFi in 2021 and subsequently delaying it, Ek confirmed its impending launch. “ The plan here is to offer a much better version of Spotify,” he stated. This premium tier is expected to be priced around $17-$18 per month, offering superior control and quality. Read Next: Image credits: Diego Thomazini on Shutterstock.

Abbott warns that some of its blood sugar monitors may need replacement due to incorrect readings 2024-07-25 20:57:06+00:00 - Abbott is warning that sensors on some of its blood sugar monitoring systems may need to be replaced to prevent inaccurate readings. Testing showed that some sensors on the FreeStyle Libre 3 system may incorrectly report high blood sugar levels, the medical device maker said Thursday. An inaccurate high blood sugar reading can prompt patients to take insulin when they don’t need it. The devices were distributed in the first half of May in the United States. Abbott estimates that less then 1% of U.S. users are affected. Customers who live outside the country or use other versions of its FreeStyle Libre system are not affected, the company said. The continuous glucose monitoring system uses a sensor, a reader and an app to help people with diabetes check their blood sugar without having to draw drops of blood from their fingers. The U.S. Food and Drug Administration first approved the Abbott devices in 2017. Abbott said it will replace the sensors at no charge. The company said people should check its website to confirm whether their sensor is affected. The sensor came from these three lot numbers, the company said: T60001948, T60001966, T60001969. ___ The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.

'Let's go': Harris agrees to debate Trump, accuses him of 'backpedaling' on Sept. 10 date 2024-07-25 20:48:00+00:00 - Vice President Kamala Harris speaks to reporters upon arrival at Joint Base Andrews in Maryland on July 25, 2024. De facto Democratic presidential nominee Kamala Harris said on Thursday she is "ready to debate" her Republican rival, former President Donald Trump. "I think that voters deserve to see the split screen that exists in this race on a debate stage, and so I'm ready," Harris told reporters on an airport tarmac outside Washington. "Let's go." Harris, the vice president, said she has agreed to face off with Trump on Sept. 10. ABC News had been scheduled to hold a debate on that date with Trump and President Joe Biden, who withdrew from the race on Sunday. "Now it appears he's backpedaling," Harris said of Trump on Thursday afternoon. "But I'm ready." Trump signaled in a press call earlier this week that he did not "like the idea" of participating in a debate hosted by ABC, which he called "fake news." But he said he "absolutely" would want to debate Harris if she becomes the Democratic nominee. "I would be willing to do more than one debate, actually," Trump said on the Tuesday afternoon call.

The Olympians with the most medals in history 2024-07-25 20:46:50+00:00 - The 2024 Olympics kick off in Paris this week. Swimmer Michael Phelps holds the record for most Olympic medals of all time, with 28. Athletes like Katie Ledecky could join the world's 19 athletes with 12 or more Olympic medals. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement The 2024 Olympics in Paris have arrived, and more than 10,000 athletes from around the world have a chance to make Olympic history. One such athlete is swimmer Katie Ledecky. With 10 medals already under her belt and a chance to win four more this year, she could become the third-most decorated female Olympian of all time and the second-most decorated Olympic swimmer behind only Michael Phelps. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .

Rats, roaches, and other creatures are winning against climate change, and it's bad news for humans 2024-07-25 20:43:32+00:00 - By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy Policy Access your favorite topics in a personalized feed while you're on the go. download the app Sign up for our newsletter to get the latest on the culture & business of sustainability — delivered weekly to your inbox. In the game of climate change, there are both winners and losers. Experts predict that one-third of Earth's plants and animals — millions of species — could disappear by 2050 if the current rate of greenhouse gas emissions persists. And some are already disappearing. But other animals are more resilient to temperature changes and habitat disruption. There are a few species that could not only survive but thrive in a warming world. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Climate models have shown that "we have a lot of species that might actually benefit from climate change," expanding their ranges into new geographic areas that were previously inhospitable to them, Giovanni Strona, quantitative ecology researcher at the European Commission's Joint Research Centre, told Business Insider. Advertisement Many of these climate change "winners" are hardy, fast-breeding scavengers that already live in some of the most degraded habitats on Earth: cities. They're not all cute and cuddly, and some are considered pests that pose risks to human health. Whether you like them or not, it doesn't look like these four critters are going away any time soon. Cockroaches probably won't need to worry about a food shortage Cockroaches have evolved to be practically invincible. They can survive extreme temperatures, radiation, and even decapitation. Shutterstock Roaches are a city-dweller's worst enemy. These indestructible insects can inhabit every corner of their urban environment, from the dredges of subway tunnels to skyrise apartments. And once they've moved in, it's extremely difficult to get rid of them. That's because the humble cockroach has evolved to be one of the most resilient animals in the world. Advertisement These ancient arthropods have been around for over 300 million years, surviving every challenge they've faced. They even made it through the Cretaceous-Paleogene extinction, which eliminated 80% of Earth's animal life. What didn't kill them only made them stronger. Cockroaches have lived through periods of extreme environmental change, including significant climatic shifts. They prefer hot, humid conditions, and can survive temperatures up to 120 degrees Fahrenheit. Related stories What's more, cockroaches can live for a month without food, and a week without water. When it comes to what they eat, they aren't picky, which means they probably don't have to worry about climate change eliminating their food source. These characteristics and their long history of survival lead scientists to believe that cockroaches will do just fine in a warmer world, and perhaps even outlive humans. Advertisement Rats can probably evolve to tackle anything climate change throws their way Rats breed all year round and reproduce in massive numbers. That means their species is better adapted and more resilient to environmental change. Shutterstock Like cockroaches, rats eat pretty much anything and can live almost anywhere. But the real source of their resilience is their adaptability. Rats reproduce in massive numbers. They breed year-round, producing roughly six litters annually. The average litter size is eight to 18 pups, so that's up to 108 rats a year from a single female. Because of how rapidly they reproduce, rats evolve faster than many other mammals, adapting to changes in their environment or climate faster and more effectively. Plus, there's strength in numbers. Having lots and lots of babies means that rats can sustain large population numbers, so when challenges arise, there's a greater chance that at least some individuals will survive. Advertisement Research has shown that rising global temperatures will only make it easier for rats to reproduce. Because as winters grow warmer, fewer rats will die from the cold, leaving more rats to reproduce year-round. We're already beginning to see their numbers increase worldwide. New York City's rat population has increased by nearly one million over the last decade, M&M Pest Control estimated in 2023. If climate change is driving a "ratpocalypse," as some evidence suggests, that could have big consequences for human health. Rats can carry diseases that are dangerous to humans, such as hantavirus, leptospirosis, and salmonella. If they thrive in a warming world, that means these diseases could too. Advertisement Mosquitos can grow faster in a warming world Rising global temperatures are driving mosquitos — and the diseases they carry — to new geographic areas. iiievgeniy/Getty Images Mosquitos aren't just annoying, they're also a major driver of disease worldwide. These tiny bloodsuckers can carry a whole host of viruses and parasites, including malaria, dengue, Zika virus, and more. When transmitted to humans, these illnesses can be fatal. Each year, over one million people around the world die from mosquito-borne illnesses. Mosquito-borne illness is most prevalent in Africa and tropic regions of southeast Asia and South America. That's because mosquitos thrive in warm, wet climates. But as climate change raises temperatures and alters precipitation trends, their range is expanding and shifting to new geographic areas. For example, a disease-carrying species of mosquito from South America appeared in Florida in 2021. Advertisement Additionally, studies have shown warmer temperatures can speed up a mosquito's growth, biting rates, and the incubation of disease inside them. This means that climate change could cause mosquito-borne illnesses to spread to new places, and increase case numbers worldwide. Some evidence suggests that we're already seeing this happen. In 2023, Florida and Texas saw their first cases of locally-transmitted malaria in 20 years. And In Europe, dengue outbreaks spiked significantly in 2022, largely driven by heat waves and flooding. So, we can expect mosquitoes to stick around for a long time if warming continues. Advertisement Ticks are staying active year-round now that winters are more mild Climate change is causing ticks to spread northward and remain active longer throughout the year. AP/CDC Move over mosquitos, there's another blood-sucking insect taking our warming world by storm. Ticks thrive in warm, humid climates. They typically remain dormant during the winter, but as this season grows milder, they're staying active year-round. They're also emerging earlier and feeding longer throughout the year. Additionally, warmer temperatures are expanding their range northward into areas where they were previously uncommon, including northeastern states such as Vermont. That's bad news for human health, because like mosquitos, ticks carry dangerous diseases. Lyme disease, anaplasmosis, and babesiosis are just a few examples of tick-borne illnesses. All three of them can become serious if left untreated. Advertisement In the US, cases of Lyme disease have nearly doubled since 1991, with the Northeast seeing the sharpest rise in cases. Studies suggest climate change has contributed significantly to this increase. And another 2023 study found that ticks are more resilient to extreme temperatures than scientists previously believed. All of this suggests ticks are weathering climate change with little issue and they'll likely stick around as temperatures continue to rise. If you live in an area where ticks are present, it's a good idea to take preventative measures against them year-round. And that goes for your pets too. But you should still be extra vigilant from April to September when ticks are most active.

What's Going On With Tech Giant Meta's Stock Today? - Meta Platforms (NASDAQ:META) 2024-07-25 20:28:00+00:00 - Meta Platforms Inc META shares are trading lower on Thursday. The technology giant is poised to receive its first EU antitrust fine for linking its classified advertisements service, Marketplace, with its Facebook social network, Reuters writes in its exclusive report. This decision from the European Commission comes more than 18 months after Meta was accused of unfairly bundling the two services together. The EU competition authority claims Meta misused its dominance by imposing unfair trading conditions on rival online classified ad services that use Facebook or Instagram. Meta could face a fine of up to $13.4 billion, representing 10% of its 2023 global revenue, although EU fines are typically much lower. The European Commission is expected to issue its decision in September or October before EU antitrust chief Margrethe Vestager leaves office in November. Also Read: Meta Oversight Board Calls For Clearer Rules Against AI-Generated Pornographic Content Meta spokesperson Matt Pollard told Reuters, "The claims made by the European Commission are without foundation. We continue to work constructively with regulatory authorities to demonstrate that our product innovation is pro-consumer and pro-competitive." Last year, Meta attempted to resolve the EU investigation by restricting the use of competitors' advertising data for Facebook Marketplace, but the EU enforcer rejected this offer. However, the U.K. competition regulator accepted a similar proposal. Earlier this month, the European Commission charged Meta with failing to comply with new tech regulations due to its recently introduced pay-or-consent advertising model launched in November. Meta stock has gained more than 56% in the last 12 months. Investors can gain exposure to the stock via Vanguard Communication Services ETF (VOX) and Communication Services Select Sector SPDR Fund XLC. Price Action: META shares are trading lower by 0.28% at $460.00 at the last check on Thursday. Read Next: Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Pixabay

Norfolk Southern profits complicated by derailment insurance payments, proxy fight and productivity 2024-07-25 20:27:13+00:00 - Norfolk Southern got a boost during the second quarter from insurance payments related to last year’s disastrous East Palestine derailment, but it also made progress in reducing its expenses and getting more efficient. The Atlanta-based railroad said it earned $737 million, or $3.25 per share, in the quarter, but there were several unusual factors influencing the results. And last year’s $356 million profit, or $1.56 per share, was heavily weighed down by costs related to the derailment near the Ohio-Pennsylvania border. But CEO Alan Shaw is most proud of the $250 million in productivity and safety gains the railroad has made this year. Norfolk Southern also hauled 5% more freight during the quarter thanks to the efficiency and new business it was able to attract. “I’m really encouraged by our progress and I’m really confident in our future,” Shaw said. “We did everything we said we were going to do.” The $156 million in insurance payments the railroad received as it recovered some of the more than $1.7 billion it has spent in response to the 2023 derailment in eastern Ohio more than offset the $91 million in costs this quarter. That resulted in a $65 million net boost to earnings. Much of the derailment costs, including the $600 million class action settlement the railroad agreed to this spring, will likely eventually be covered by the railroad’s insurance. Further complicating the financial picture is the fact that Norfolk Southern spent $22 million in the quarter to fight back against investor Ancora Holdings’ campaign to take over the board and fire the railroad’s management. Ancora’s nominees ultimately won three board seats, but not enough to take control. Without any of those unusual factors, Norfolk Southern estimated that it would have earned $694 million, or $3.06 per share, in the quarter. The analysts surveyed by FactSet Research expected the railroad to report earnings per share of $2.86. Norfolk Southern endorsed all of the recommendations the National Transportation Safety Board made in its final East Palestine report, and the railroad said it has largely addressed the safety concerns the Federal Railroad Administration raised in a report last year. But the rail industry has been lobbying against many of the proposed regulations Congress has been considering. During the proxy fight, Shaw hired a new operations chief and promised to make the railroad more efficient, though he still says he doesn’t want to cut so deep that Norfolk Southern won’t have the resources it needs to handle additional freight when the economy does improve. The railroad said has already parked more than 320 locomotives and pulled some 7,000 cars off its network as it moved to run fewer but longer trains to handle the same freight without as many engines or crews. Over the next two years, Norfolk Southern predicts will improve productivity by about $550 million and boost its profit margin. The railroad’s revenue grew 2% to $3.04 billion in the quarter, in line with Wall Street’s forecast. Norfolk Southern is one of the nation’s largest railroads operating trains across the eastern United States.

Honeywell drops on cuts to guidance. Here's why it may provide an opportunity 2024-07-25 20:26:00+00:00 - Shares of Honeywell slid Thursday as strong second-quarter results are being overshadowed by a mixed update to management's outlook for the remainder of the year. But we're looking through the weakness on a belief that the industrial conglomerate is heading toward a healthy 2025. Revenue for the three months ended June 30 totaled $9.58 billion, topping Wall Street expectations of $9.41 billion, according to estimates compiled by LSEG. Adjusted earnings per share of $2.49 advanced roughly 8% compared with the year-ago period, ahead of the $2.42 consensus forecast, LSEG data showed. It also came in above the high end of management's guidance. Segment margin , similar to an adjusted operating income margin, expanded about half a percentage point on an annual basis to 23%, slightly below expectations but in line with management's previously forecasted range. Honeywell Why we own it: Honeywell is a provider of industrial technology solutions to companies in various industries. We appreciate its exposure to the aerospace industry as a parts supplier. The portfolio has, however, become a bit bloated. We think further upside will come as the company divests non-core businesses and focuses both internal investments and acquisition efforts around management's three targeted mega-trends: automation, the future of aviation, and the energy transition. Competitors: Emerson Electric, RTX, 3M Weight in portfolio: 3.14% Most recent buy: April 10, 2024 Initiated: July 5, 2020 Bottom line Honeywell's actual results were strong. The nearly 5% decline in the stock is all about the company's more subdued outlook. Second-quarter sales, earnings, organic growth and cash flow all outpaced expectations, with quality performance across Honeywell's four operating segments. Its overall segment profit margin came up slightly short, but the weakness there is entirely attributable to a miss in Aerospace Technologies profitability. HON YTD mountain Honeywell's year-to-date stock performance. But here's the root of Thursday's selling: Honeywell downwardly revised its full-year guidance for segment margin, earnings per share, and cash flow guidance. The changes are tied to the inclusion of previously closed and announced acquisitions, as well as a slower-than expected-rebound for short-cycle businesses. That is carrying much more weight than the bump to Honeywell's full-year sales outlook and the low end of its organic sales growth forecast. Management had been clear that the swing factor for achieving the higher end of its previous guidance was the pace of a rebound for short-cycle businesses, which tend to be more profitable. Unfortunately, despite some "pockets of short-cycle strength," other short-cycle businesses "are not accelerating as much as we had hoped," CFO Greg Lewis said on the call. For context, long-cycle businesses are less sensitive to near-term economic conditions since there's a lengthier period between when order placement and delivery. Aerospace is a good example. Honeywell's building products unit, which includes offerings like fire-protection systems, is an example of short-cycle business. Obviously, this is not an ideal forecast. But we still walk away from the report believing things are getting better — even with the obstacles in short-cycle areas and the signs that other investors are throwing in the towel. Supply chain dynamics are improving, and profitability is expected to rebound as we work our way into next year. Moreover, management is hard at work executing on CEO Vimal Kapur's vision of better aligning the overall business to the megatrends of automation, the future of aviation, and energy transition. Following Thursday's report and guidance revisions, we are reiterating our price target of $225 a share as we see a favorable setup for 2025 and anticipate a stronger rebound in the short-cycle businesses. We also reaffirm our 2 rating as we look for a better entry point below the $200-per-share level. Guidance Looking at the guidance table above, management's outlook for the current quarter — its fiscal 2024 third quarter — was mixed. Sales were guided to be better than expected, though profitability came up short of Wall Street estimates. On the call, Honeywell executives said the third quarter is expected to be the low point of the year for segment margins, "reflecting the closing of [defense firm] CAES and less favorable quarterly mix." But the situation is set to improve. "In Industrial Automation, we're benefiting from solid orders, momentum in most of our long-cycle businesses, while our short-cycle businesses are showing varying signs of sequential progress," finance chief Lewis said. "In the third quarter, we expect modest sequential improvement in [Industrial Automation] and a return to year-over-year growth in the back half." On a full-year basis, management's boosted its sales and organic growth outlook. However, its forecast for segment margin, earnings and cash flow were all revised lower. These updates reflect the impact of Honeywell's $5 billion acquisition of Carrier's Global Access Solutions business, which closed in June , and two previously announced acquisitions expected to close in the third quarter: the $1.9 billion purchase of CAES Systems Holdings and the $1.8 billion acquisition of Air Products' LNG Business . Of the 15-cent reduction to the midpoint of the team's full-year adjusted earnings guide, roughly one-third (5 cents) is attributable to acquisition-related costs. The other two-thirds (10 cents) are attributable to the sales mix as less profitable long-cycle businesses are outgrowing short-cycle businesses. "While we are encouraged by our performance year to date and our robust backlog, the back half will remain influenced by the dynamic macroeconomic backdrop and varying levels of channel improvement across our portfolio," Lewis said on the call. Quarterly commentary As we can see above, a slight miss in Aerospace Technologies profitability due to the sales mix was the only real miss in the reported results and dragged down the companywide segment margin. Even still, actual Aerospace segment profit dollars came in ahead of expectations thanks to its strong topline performance. Aerospace continued to lead the way for organic growth, which management expects to continue throughout the year. Honeywell anticipates the second quarter "to be our low point of the year for growth as some related supply chain challenges abate," Lewis said. Aerospace benefited from double-digit growth in both the defense and space, and commercial aviation, the latter of which realized its 13th consecutive quarter of double-digit growth. Equally important, the supply chain continues to improve, with output increasing 14% in the second quarter. Industrial Automation sales were hampered by volume declines in warehouse and workflow solutions, though overall sales were up 1% compared with the first quarter. Sales in productivity solutions and services declined on a reported basis. However, they were up year over year and sequentially when "excluding the impact of payments under the license and settlement agreement that ended in the first quarter," according to a press release. Sensing and safety technologies business sales were down compared with the year-ago period, though orders and sales improved sequentially. The segment's book-to-bill came in at 1.1. A book-to-bill ratio measures the amount of business booked versus the amount billed. The higher the ratio, the better because it means that demand is exceeding supply and resulting in backlog growth. Building Automation sales were up only 1% organically year over year. But they increased 10% sequentially when including the one-month contribution of Carrier's Global Access Solutions operations. The book-to-bill ratio came in at 1.1 for the segment. In Energy and Sustainability Solutions, overall sales growth was led by 8% growth in advanced materials. However, sales in UOP, its petrochemicals business, fell 4% due "difficult year-over-year comps from large gas processing equipment projects, partially offset by growth in refining catalysts and aftermarket services," the company said in a release. The book-to-bill ratio came in at 1.2 for the segment. (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. The Honeywell International sign sits outside of the company's former global headquarters in Morristown, New Jersey. Daniel Barry | Bloomberg | Getty Images Shares of Honeywell slid Thursday as strong second-quarter results are being overshadowed by a mixed update to management's outlook for the remainder of the year. But we're looking through the weakness on a belief that the industrial conglomerate is heading toward a healthy 2025. Revenue for the three months ended June 30 totaled $9.58 billion, topping Wall Street expectations of $9.41 billion, according to estimates compiled by LSEG. for the three months ended June 30 totaled $9.58 billion, topping Wall Street expectations of $9.41 billion, according to estimates compiled by LSEG. Adjusted earnings per share of $2.49 advanced roughly 8% compared with the year-ago period, ahead of the $2.42 consensus forecast, LSEG data showed. It also came in above the high end of management's guidance. of $2.49 advanced roughly 8% compared with the year-ago period, ahead of the $2.42 consensus forecast, LSEG data showed. It also came in above the high end of management's guidance. Segment margin, similar to an adjusted operating income margin, expanded about half a percentage point on an annual basis to 23%, slightly below expectations but in line with management's previously forecasted range. Honeywell Why we own it: Honeywell is a provider of industrial technology solutions to companies in various industries. We appreciate its exposure to the aerospace industry as a parts supplier. The portfolio has, however, become a bit bloated. We think further upside will come as the company divests non-core businesses and focuses both internal investments and acquisition efforts around management's three targeted mega-trends: automation, the future of aviation, and the energy transition. Competitors: Emerson Electric, RTX, 3M Weight in portfolio: 3.14% Most recent buy: April 10, 2024 Initiated: July 5, 2020 Bottom line Honeywell's actual results were strong. The nearly 5% decline in the stock is all about the company's more subdued outlook. Second-quarter sales, earnings, organic growth and cash flow all outpaced expectations, with quality performance across Honeywell's four operating segments. Its overall segment profit margin came up slightly short, but the weakness there is entirely attributable to a miss in Aerospace Technologies profitability. Stock Chart Icon Stock chart icon Honeywell's year-to-date stock performance. But here's the root of Thursday's selling: Honeywell downwardly revised its full-year guidance for segment margin, earnings per share, and cash flow guidance. The changes are tied to the inclusion of previously closed and announced acquisitions, as well as a slower-than expected-rebound for short-cycle businesses. That is carrying much more weight than the bump to Honeywell's full-year sales outlook and the low end of its organic sales growth forecast. Management had been clear that the swing factor for achieving the higher end of its previous guidance was the pace of a rebound for short-cycle businesses, which tend to be more profitable. Unfortunately, despite some "pockets of short-cycle strength," other short-cycle businesses "are not accelerating as much as we had hoped," CFO Greg Lewis said on the call. For context, long-cycle businesses are less sensitive to near-term economic conditions since there's a lengthier period between when order placement and delivery. Aerospace is a good example. Honeywell's building products unit, which includes offerings like fire-protection systems, is an example of short-cycle business. Obviously, this is not an ideal forecast. But we still walk away from the report believing things are getting better — even with the obstacles in short-cycle areas and the signs that other investors are throwing in the towel. Supply chain dynamics are improving, and profitability is expected to rebound as we work our way into next year. Moreover, management is hard at work executing on CEO Vimal Kapur's vision of better aligning the overall business to the megatrends of automation, the future of aviation, and energy transition. Following Thursday's report and guidance revisions, we are reiterating our price target of $225 a share as we see a favorable setup for 2025 and anticipate a stronger rebound in the short-cycle businesses. We also reaffirm our 2 rating as we look for a better entry point below the $200-per-share level. Guidance Zoom In Icon Arrows pointing outwards Honeywell's third-quarter and full-year guidance. Looking at the guidance table above, management's outlook for the current quarter — its fiscal 2024 third quarter — was mixed. Sales were guided to be better than expected, though profitability came up short of Wall Street estimates. On the call, Honeywell executives said the third quarter is expected to be the low point of the year for segment margins, "reflecting the closing of [defense firm] CAES and less favorable quarterly mix." But the situation is set to improve. "In Industrial Automation, we're benefiting from solid orders, momentum in most of our long-cycle businesses, while our short-cycle businesses are showing varying signs of sequential progress," finance chief Lewis said. "In the third quarter, we expect modest sequential improvement in [Industrial Automation] and a return to year-over-year growth in the back half." On a full-year basis, management's boosted its sales and organic growth outlook. However, its forecast for segment margin, earnings and cash flow were all revised lower. These updates reflect the impact of Honeywell's $5 billion acquisition of Carrier's Global Access Solutions business, which closed in June, and two previously announced acquisitions expected to close in the third quarter: the $1.9 billion purchase of CAES Systems Holdings and the $1.8 billion acquisition of Air Products' LNG Business. Of the 15-cent reduction to the midpoint of the team's full-year adjusted earnings guide, roughly one-third (5 cents) is attributable to acquisition-related costs. The other two-thirds (10 cents) are attributable to the sales mix as less profitable long-cycle businesses are outgrowing short-cycle businesses. "While we are encouraged by our performance year to date and our robust backlog, the back half will remain influenced by the dynamic macroeconomic backdrop and varying levels of channel improvement across our portfolio," Lewis said on the call. Quarterly commentary Zoom In Icon Arrows pointing outwards Honeywell's second-quarter earnings compared with Wall Street estimates and the year-ago period.