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Major brands scaled back Pride Month campaigns in 2024. Here's why that matters. 2024-06-29 12:56:00+00:00 - Fifty-five years after a raid on New York City's Stonewall Inn sparked riots that catalyzed the gay liberation movement and became a cornerstone of modern LGBTQ advocacy, Pride celebrations are bigger and bolder than ever. Meant to commemorate the Stonewall uprising each June, Pride Month in many parts of the world has grown into a four-week extravaganza marked by parades, parties, concerts and an array of cultural events that pay homage to its roots in free expression and identity. Corporations have cashed in on the festivities, especially since the U.S. legalized marriage equality in 2015. But this year, public-facing Pride campaigns at some of the world's largest brands were quieter than usual. At other companies that previously had them, they were completely absent. Fewer public campaigns mean less visibility, which LGBTQ advocates and consumers in the community say can be dangerous in myriad ways. Last year's conservative backlash "Corporate Pride" entered mainstream conversations last summer as a flashpoint in the political debate over LGBTQ rights and, specifically, rights for transgender students and young people. To that end, 527 bills to limit those rights were introduced between 2023 and 2024 in legislatures in all but nine U.S. states, according to the American Civil Liberties Union. Dozens have already passed. In the shadow of that legislative trend, and as the mounting election cycle continued to polarize the country on issues around queer and trans rights, a handful of the world's most prominent brands contended with a firestorm of backlash over their Pride campaigns leading up to, and during, Pride Month last summer. Pride Month merchandise is displayed at a Target store on May 31, 2023 Justin Sullivan/Getty Images Attacks on Target and Anheuser-Busch, the parent company of Bud Light, were among the most visible. At Target, which had been releasing Pride-themed collections for more than a decade, some customers took aim at a swimsuit labeled "tuck-friendly" that was intended to be trans-inclusive. Social media users claimed the swimsuit was designed for children, even though Target only sold it in adult sizes. For Bud Light, a longtime supporter of the LGBTQ community, a collaboration with trans social media star Dylan Mulvaney stoked conservative fury. What began as disapproval from loud and impassioned fringe groups on the far right quickly spiraled into a wider crusade that at one point involved some Republican leaders, commentators and even some celebrities. Along with fierce calls for boycotts against both companies, Target said customers angered by the Pride collection had knocked over displays in some of its stores and gone so far as to threaten employees. In a viral video, one customer was seen confronting a Target worker over the brand's "Satanic Pride propaganda." Target initially responded to the backlash by moving Pride collections to the backs of its stores in several Southern states, while Anheuser-Busch CEO Brendan Whitworth addressed the controversy indirectly in a statement that said the company "never intended to be part of a discussion that divides people." Leading LGBTQ organizations accused the brands of caving to conservative pressure at the expense of queer and trans people, in a moment where the allyship those companies claimed to value was being put to the test. Bud Light and Target each reported a drop in sales in the aftermath of the controversies, with one Target executive attributing the decline to the "strong reaction" to its Pride merchandise. A toned-down Pride Month This year, Target announced it was cutting back on the number of stores that would carry Pride Month-related merchandise, after previously featuring the annual collection at all of its 2,000 or so locations. The Minneapolis-based corporation said the 2024 Pride line would be "in select stores, based on historical sales performance," but available in its entirety online. "Target is committed to supporting the LGBTQIA+ community during Pride Month and year-round," a Target spokesperson said in a statement to CBS News in May, noting Target's programs to support queer employees and its internal plans to celebrate Pride in 2024. "Beyond our own teams, we will have a presence at local Pride events in Minneapolis and around the country, and we continue to support a number of LGBTQIA+ organizations," the statement added. This was also the first year since 1999 without a Pride collection from Nike, which was historically a vocal ally. The company found itself facing criticism over a collaboration with Mulvaney leading up to Pride in 2023 and said it was turning its focus this year toward programming and ongoing support for the LGBTQ community in place of its traditional apparel line. "Nike exists to champion athletes and sport — and for us that means all bodies, all movement, and all journeys," a Nike spokesperson said in a statement to CBS News. "Nike has a long history of standing with the LGBTQIA+ community, which focuses on uplifting, inspiring and educating through community grants, employee engagement, athlete partnerships, public policy, powerful storytelling, and products that celebrate the community." "While there is no global Be True product collection for 2024, Nike remains deeply committed to this work," the spokesperson said. A survey of executives at major corporations, including Fortune 500 companies, conducted earlier this year by Gravity Research found that one-third of the responding brands labeled "consumer staples" — like retail companies — planned to change their engagement strategies for Pride Month in 2024 compared with the approaches they took in 2023. LGBTQ organizations are taking a hit Advocates say Nike has built up its allyship behind the scenes — which, they emphasize, is what matters most — and it isn't alone in doing so. Still, as public-facing brand campaigns for Pride have partly fizzled, the consequences have trickled down to LGBTQ nonprofit organizations and LGBTQ influencers. Nonprofits have received fewer material resources from their corporate partners this year, according to Paul Irwin-Dudek, the deputy executive director for development at the LGBTQ advocacy organization GLSEN. And influencers said they've seen fewer commitments from clients since the 2023 controversy. Around the time that Target announced its plans to scale down Pride displays in retail stores, the company also ended a decadelong partnership with GLSEN, which runs a huge network of programs centered around queer and trans youth as well as workplace inclusivity, said Irwin-Dudek. GLSEN helps companies shape their Pride campaigns, among other things. Irwin-Dudek told CBS News that other corporations took a step back from previous partnerships with the organization — and from Pride Month — this year because they didn't know how to engage with it without becoming part of the Target narrative or facing additional blowback themselves. "At the end of the day, nobody wants to be part of that narrative," said Irwin-Dudek. "I think, and I can say this across the entire landscape of queer organizations, we have all taken a hit to our revenues this year because of the setback that many corporate partners have done in the month of June." Members of the LGBTQ community who spoke to CBS News — and who aren't affiliated with any political or advocacy organization — were largely disappointed by this year's diminished corporate Pride displays, but they weren't surprised. It was evidence, several people believe, that companies will only be allies for as long as it's comfortable and convenient for them. "We already had our criticisms of Pride being a hollow thing, and I think that's what pushed brands to actually put more material support behind it and that meant that brands were listening to the queer audience about Pride, about how they could make Pride more inclusive or more reputable or legit," said a 30-year-old queer and trans writer living in New York who asked not to be named. "So, the fact that they're now listening and kowtowing to the right is very scary. Because suddenly we're not in the demographic that they're catering to. Regardless of whether the demographic they're catering to is about money, it shows how they see our identities as being financially conditional." "Rainbow washing" and corporate values Some research has shown that American consumers are twice as likely to buy from a brand or use its products if that brand publicly supports and shows commitment to the LGBTQ community. A December 2022 study from GLAAD, a prominent LGBTQ nonprofit that focuses on media monitoring and representation, and the Edelman Trust Institute, a think tank, found that most Americans expect businesses and their leadership to stand up for LGBTQ rights. For some companies, outward displays of support for LGBTQ rights and inclusivity during Pride are an extension of their support over the other 11 months of the year. Other companies, however, roll out flashy Pride campaigns once a year without making sincere commitments to the people and issues they impact — drawing accusations of opportunistic advertising, virtue signaling and profitable exploitation. Some critics believe that launching arbitrarily Pride-themed product lines offends and belittles the cause that the merchandise claims to defend. Some corporate attempts to make sales off of Pride Month with fleeting, and, by some accounts, haphazard, campaigns has fueled skepticism from LGBTQ consumers frustrated by the prevalence of "rainbow washing," where Pride regalia is used as a profitable marketing tactic by brands that don't offer lasting or meaningful support. Also called "pinkwashing" and "rainbow capitalism," the practice is widely considered exploitative, and, with the rise of social media, it's also becoming well known. Comedian Meg Stalter's impersonation of a small-town butter shop employee who opens an ad with "Hi gay," and says her business is "sashaying away with deals" for Pride Month, has been viewed almost 2.2 million times. "We know that our community is critical of companies who pop in to be supportive for one month out of the year and then leave," said Meghan Bartley, the brand engagement lead at GLAAD. "It feels like we aren't cared about as a community." The British retailer Marks & Spencer's notorious "LGBT sandwich" — a BLT with guacamole — is one example of the seemingly random array of goods that brands tend to refurbish in kaleidoscopic packaging come June, stamped with logos and taglines linked to Pride despite being evidently unrelated to it. Items that get the seasonal Pride treatment run the gamut from special edition lattes to Johnson & Johnson's line of rainbow-packaged Listerine, and the list goes on. This year, iHeartRadio listeners in New York City who tuned in on June 1 would have heard a commercial for toilet paper tenuously crafted under the banner of Pride. Yet as imperfect as corporate Pride marketing can be, critics of rainbow washing or trivializing Pride displays largely agree that the opportunity to critique LGBTQ brand campaigns is a privilege, and many say the fact that those campaigns exist is usually better than them not existing at all. Many members of the LGBTQ community who talked to CBS News say that even rudimentary Pride displays, like rainbow flags or graphic T-shirts in a storefront window, provide some level of visibility that can help normalize LGBTQ identities and, ultimately, move the needle in terms of acceptance among people outside of the community. Bartley, with GLAAD, echoed their sentiments and said the visibility that public Pride campaigns offer can have a measurable impact on the daily experiences of people who are closeted, or who've come out in an environment that doesn't welcome who they are. "Greater visibility for Pride campaigns has allowed more and more people who are in our community, and maybe not comfortable coming out, understand that there's a space for them to be accepted when they see more and more visibility and acceptance in their lived spaces," said Bartley. The future of Pride campaigns Some corporations that push Pride campaigns have made an effort to be allies beyond Pride Month alone. Johnson & Johnson's thematic Listerine bottle was released in 2019 as part of its ongoing "Care With Pride" initiative, which partners with LGBTQ advocacy groups to foster an inclusive workplace and has so far donated at least $1 million to LGBTQ nonprofit organizations, according to the company. The Human Rights Campaign, an LGBTQ advocacy group, has also ranked Johnson & Johnson as one of the best places in the U.S. for queer people to work. Disney, Hollister, REI and Proctor and Gamble are a few more brands that advocacy groups have commended for taking steps toward consistent allyship — both publicly and behind the scenes. When looking at the overall landscape, the LGBTQ advocacy groups that talked to CBS News don't believe corporate Pride campaigns will disappear in the long term. Both Irwin-Dudek and Bartley said companies can change their ethos by ensuring LGBTQ people are at the table whenever marketing plans are conceived and developed for Pride, whether they're employees of the company or outside resources. And Eric Bloem, vice president of programs and corporate advocacy at the Human Rights Campaign, told CBS News in a statement that the organization's own research shows "that the business environment, despite the best efforts of fringe groups to derail long-standing principles of inclusion, has and always will be pro-equality." CBS News has reached out to Target, Disney and Anheuser-Busch for comment.
Biden? Trump? The Politics of Talking About It at the Office. 2024-06-29 12:00:02.533000+00:00 - Offices across the nation — and Slack channels, the modern water cooler — were abuzz Friday morning with voluble opinions about the presidential debate from the night before. How bad was Biden’s performance? Should Biden step aside? Who should replace him? Can that even happen? Are voters more focused on performance than substance? How many times did Trump lie? Did Biden lie, too? For most chief executives, presidential elections are a nightmare — they create division inside teams, take up valuable time and can turn into a big distraction. Kim Scott, a former Google executive and the author of “Radical Candor,” described the sentiment of human resources executives who were at a recent gathering: “They are dreading this election because it’s going to kill productivity for months.” So what’s the solution? The C-suite may want to just hit the off button. But that may be easier said than done.
What's Behind Walgreens Stock Plunge: What Investors Can Do Next 2024-06-29 11:07:00+00:00 - After years of a downtrend in their price, shares of Walgreens Boots Alliance Inc. NASDAQ: WBA have thrown in the towel this time. In a single day, the stock is down over 25% in a sign that can’t be taken in any other way than a ‘run’ message. However, some remain hopeful about the stock recovering, but that would be severely disconnected from current fundamentals. Walgreens Boots Alliance Today WBA Walgreens Boots Alliance $12.10 -0.09 (-0.74%) 52-Week Range $11.68 ▼ $31.32 Dividend Yield 8.27% Price Target $20.64 Add to Watchlist Today, investors get a chance to audit the main drivers behind Walgreens and come to a better-educated conclusion as to whether the stock is worth keeping on a watchlist. More specifically, investors should watch the developments between Walgreens and its main competitor, CVS Health Co. NYSE: CVS, because the trends could not be more apparent. Get CVS Health alerts: Sign Up Last but not least, savvy investors understand that it isn’t just Walgreens and CVS at stake in this turbulent time but also entities that back Walgreens locations, such as its landlords. According to the saying, one man’s trash is another man’s treasure, so here is how to figure out where the real treasure hunt will end up. Walgreens vs. CVS: Financials Break Down the Competition There is, of course, a good reason for the price crash on shares of Walgreens, and it’s got everything to do with the company’s financials. For starters, investors can break apart the latest quarterly results to figure out what happened behind the scenes. While the company’s press release points to earnings per share (EPS) nearly quadrupling, the reality couldn’t be further. Therefore, net income and EPS can be easily manipulated. In contrast, other metrics like free cash flow (operating cash flow minus capital expenditures) cannot. This is why investors should focus on that instead, and here’s what they would find: a net operating outflow of $314 million, minus $1.1 billion in capital expenditures, for a negative free cash flow of over $1.3 billion. Since a company cannot run without cash flow, seeing what management did next makes sense. The plan is to close a ‘significant’ amount of Walgreens locations, assuming they are unprofitable. While this could free up some cash and cut overhead expenses, it won’t be enough to offset the unprofitable operations that lie at the heart of the company. Because Walgreens has no free cash flow, it cannot fund its operations further without taking on debt or diluting shareholders. Because of this, the stock’s 8.2% dividend yield should be nothing short of a red flag to investors, a bait to avoid. Walgreens Boots Alliance Dividend Payments Dividend Yield 8.27% Annual Dividend $1.00 Annualized 3-Year Dividend Growth 1.25% Dividend Payout Ratio -14.84% Recent Dividend Payment Jun. 12 See Full Details On the other hand, here’s what can be said about CVS’s financials. The company’s latest quarterly results show investors operating cash flow of $4.9 billion, leaving them with positive free cash flow even after $705 million in capital expenditures. What management chose to do with this capital was also the right thing. Up to $3 billion was set aside to repurchase stock, compounding the upside effects for existing shareholders. This trend must be why analysts at J.P. Morgan Chase saw it fit to boost CVS’s valuations to $86 a share, daring it to rally by 47.2% from where it sits today. Now that the dust is settled, investors can zoom out of this dramatic price action and find themselves with the next best thing, Walgreens’ landlord Realty Income Co. NYSE: O, a real estate investment trust (REIT) known for paying monthly dividends instead of quarterly. The Best Income a Dip Can Buy: Realty Income Stock As Walgreens’ landlord, Realty Income stock is exposed to the closure of hundreds of locations. However, markets habitually exaggerate things, so here’s just how exposed they really are. Walgreens Boots Alliance MarketRank™ Stock Analysis Overall MarketRank™ 4.83 out of 5 Analyst Rating Reduce Upside/Downside 70.7% Upside Short Interest Bearish Dividend Strength Moderate Sustainability -2.09 News Sentiment -0.05 Insider Trading Acquiring Shares Projected Earnings Growth 1.70% See Full Details According to Realty Income’s latest quarter, the company only derived 3.4% of its rental income from Walgreens. This is not significant enough to justify a more than 1% sell-off in an otherwise low-volatility stock. When the market realizes how little this event means for Realty Income, it will be too late for investors to squeeze a potential discount. Speaking of discounts, the stock’s valuation is so low that its annual dividend yield has jumped to 6%, the highest in company history (excluding COVID sell-offs). According to those at Stifel Nicolaus, Realty Income stock is worth up to $65 a share, daring it to rally by as much as 24% from where it trades today. More than that, Wall Street still expects to see 3.8% EPS growth in Realty Income this year, keeping up with inflation and GDP growth. Before you consider CVS Health, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and CVS Health wasn't on the list. While CVS Health currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
MarketBeat Week in Review – 6/24 - 6/28 2024-06-29 11:00:00+00:00 - The Personal Consumption Expenditure (PCE) index came in as expected. That didn’t do much to move the market higher, but it may be enough to keep the momentum in equities going. But which equities? If you look closely, some questions remain. Approximately 60% of stocks in the S&P 500 are flat or lower for the year. That reinforces the fact that this is a narrow rally. However, will that show up when companies report earnings? Investors will have to wait another couple of weeks before earnings season kicks off. In the meantime, next week is likely to be quiet, with markets closed on Thursday for the Fourth of July and lighter trading volume around the holiday. Get Bloom Energy alerts: Sign Up As you enjoy your holiday plans, you can count on the MarketBeat team to provide the analysis you need when you return to trading and investing. Here are some of our most popular articles from this week. Articles by Jea Yu Many investors are using options strategies to help them navigate a tricky market. As part of our Learn series for investors, Jea Yu outlined three winning Options Strategies that traders can use to trade a stock that is in an uptrend in a rising market. Yu also wrote about the opportunity that exists for Bloom Energy Corp. NYSE: BE as the need for data centers expands. Data centers are becoming an ideal application for Bloom Energy’s solid oxide fuel cell (SOFC) technology, but Yu explains why it may take some time for that advantage to show up in the company’s financials. Yu also explained how investors may want to approach United States Steel Co. NYSE: X as Congress reviews Nippon Steel’s plan to acquire the company. Although the price action in X stock suggests the acquisition will be blocked, Yu explains why traders may want to take a bullish bet on the deal’s approval. Articles by Thomas Hughes Expectations are that the market will have a strong rally in the second half of the year, fueled by rising earnings. If that’s the case, what sectors are likely to do well? That's the question that Thomas Hughes took on this week when giving investors the Top 3 Booming Sectors that could start catching a bid this summer. One of the big stories this week came from Chipotle Mexican Grill Inc. NYSE: CMG, which began trading at its split-adjusted price. Hughes took on the issue of where CMG stock will go from here. With the company continuing to draw bullish customer and investor sentiment, Hughes explained why that move will likely be higher. Nike Inc. NYSE: NKE shareholders could only hope for positive investor sentiment. As Hughes writes, despite “good enough” earnings, NKE stock is testing new lows on weak guidance. Hughes points out that investors need to decide if the stock is now so bad it’s good or if investors need to hear more from the company. Articles by Sam Quirke In a market where the winners are still made up of a small fraction of stocks, Microsoft Corp. NASDAQ: MSFT is one of the winners. The founding member of the Magnificent 7 saw its stock soar to another record high this week. And Sam Quirke explains why, after a bullish upgrade, there’s still a lot more magnificence that’s likely to come from MSFT stock. Sticking with technology stocks, Quirke analyzed Amazon.com Inc. NASDAQ: AMZN. This is another stock that’s been outperforming the market, and Quirke outlines three reasons why the stock may not be done yet. One stock that hasn’t been performing well this year is Tesla Inc. NASDAQ: TSLA. Despite growing risk-on sentiment in the market, which is usually bullish for a company like Tesla, the stock is down over 20% for the year. However, Quirke explains why the tide may be turning and that it may be time for investors to take a closer look at TSLA stock. Articles by Ryan Hasson While some people believe the stock rally may be just getting started, Ryan Hasson was taking the other side of the debate. This week, Hasson suggests that the recent pullback in NVIDIA Corp. NASDAQ: NVDA combined with the narrow breadth of the market may indicate that the summer market rally may be over before it started. If the market is going to go through a correction phase, Hasson suggests that investors may want to avoid CAVA Group Inc. NASDAQ: CAVA. The Mediterranean fast-casual chain has taken the market by storm, shooting up 113% in the last year. However, as Hasson writes, analyst sentiment suggests that investors may want to wait for a pullback before getting involved with CAVA stock. Articles by Gabriel Osorio-Mazilli Gabriel Osorio-Mazilli also examined the recent price action in NVIDIA. However, rather than examining what it may mean for the market as a whole, he focused on whether investors should view the stock as a Buy, Sell, or Hold. McDonald’s Corp. NYSE: MCD stock has been under pressure this year. Osorio-Mazilli reminds investors that most of the company's problems are self-inflicted as it manages the effects of inflation on its producer prices and the consumer. However, the company’s new $5 meal is igniting a price war, and competitors are starting to enter the fray. Finally, if you’re looking for stocks to buy, Osorio-Mazilli reminds investors that looking at the stocks that fund managers are buying is a good start. He did exactly that in an article that highlighted three stocks that Morningstar analysts indicate are getting an inflow of capital from hedge funds. Before you consider Bloom Energy, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Bloom Energy wasn't on the list. While Bloom Energy currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
General Mills Stock Drops After Revenue Miss in Fiscal Q4 2024 2024-06-29 11:00:00+00:00 - General Mills NYSE: GIS lies within the consumer staples sector and ranks in the top 10 largest food and beverage companies in the United States by revenue. In 2024, the share price is essentially where it started for the year, with a total return of just under 0%. General Mills Today GIS General Mills $63.26 -0.45 (-0.71%) 52-Week Range $60.33 ▼ $77.63 Dividend Yield 3.73% P/E Ratio 14.68 Price Target $70.44 Add to Watchlist But it hasn’t simply been trading sideways. Year-to-date returns went up into the 12% range in April and May, but fell significantly over the past five weeks. Since releasing its fiscal year 2024 earnings on the morning of Jun. 26, shares have fallen by over 5%. Let’s look at General Mills' business lines, recent financial statements, and future outlook to contextualize this reaction and analyze its prospects going forward. Get General Mills alerts: Sign Up General Mills’ Business Segments and Products General Mills lists four segments in its annual report: North America Retail, International, Pet, and North America Foodservice. The firm controls more than 100 unique brands, including Cheerios, Bisquick, and Häagen-Dazs, and operates in over 100 countries. The North America Retail segment is by far the largest, accounting for 77% of operating profit. The company's Pet segment comes in at 12%, North America Foodservice at 8%, and International at 3%. North America Retail focuses on many food products, including ready-to-eat cereals, frozen foods, and shelf-stable vegetables. The firm’s primary customers are grocery stores and mass merchandisers. Due to the nature of its business, input costs for its products can fluctuate widely based on the prices of commodities like wheat, corn, sugar, and other agricultural products. The report states that while seasonality affects some product sales, overall demand remains generally balanced throughout the year. General Mills' Earnings: Earning Per Share Beat, Revenue Miss, and Dividend Increase Earnings per share (EPS) came in slightly above the consensus $0.99 estimate at $1.01. The firm missed revenue considerably, coming in at $4.71 billion versus $4.85 billion expected. Over the full year, net sales were down 1%, but adjusted operating profit grew by 4% despite this. An increase in net price realization and mix drove this. This means the company was able to charge higher prices for its products, net of any discounts provided. Although the firm sold at higher prices, lower sales volume offset this, resulting in a decrease in revenue in the end. A $241 million reduction in SG&A expenses boosted adjusted operating profit. General Mills Dividend Payments Dividend Yield 3.73% Annual Dividend $2.36 Annualized 3-Year Dividend Growth 4.51% Dividend Payout Ratio 54.76% Next Dividend Payment Aug. 1 See Full Details Yet, on a quarterly basis, compared to Q4 2023, both revenue and adjusted operating profit showed meaningful declines. Revenue was down 6%, and adjusted operating profit was down 10%. Adjusted diluted EPS was also down 10%. A big disappointment came with the international segment. The firm reported a 68% decline in operating profit from Q4 2023. Brazil's and China's harsh environments contributed significantly to this outcome. In Brazil, customers heavily reduced inventory. In China, a downturn in consumer sentiment in the second half of the year seriously harmed sales of the firm's premium brands like Häagen Dazs. Another notable point from this release relates to the firm's dividend. The firm announced an increase in its dividend, raising its dividend yield to 3.74%. Increases like this are not uncommon, as the company’s dividend has grown by 4.5% annually over the last three years. The firm offers a solid return of capital to investors in the form of income that's more than double its industry average. The average dividend yield for Processed & Packaged Goods firms sits at 1.8%. General Mills' Fiscal 2025 Outlook: Gradual Volume Recovery and Cost Savings Expected General Mills MarketRank™ Stock Analysis Overall MarketRank™ 4.50 out of 5 Analyst Rating Hold Upside/Downside 11.4% Upside Short Interest Bearish Dividend Strength Strong Sustainability -3.28 News Sentiment 0.15 Insider Trading Selling Shares Projected Earnings Growth 5.56% See Full Details General Mills predicts that it will gradually recover from sales volume declines over fiscal 2025. It also hopes to drive continued savings in cost of goods sold (COGS) of 4% to 5%. This will be achieved through its Holistic Margin Management program (HMM), which allowed the firm to mitigate inflation in 2024. It expects this level of savings will increase margins as it sees COGS inflation being in the range of 3% to 4%. But it doesn’t expect to increase earnings significantly. The guidance midpoint shows adjusted diluted EPS remaining flat over fiscal 2025. Six analysts updated their ratings after the release. Their average price target for the stock is $68. This implies a 7% upside from the Jun. 27, 2024, closing price. Before you consider General Mills, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and General Mills wasn't on the list. While General Mills currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
How ratings for first presidential debate of 2024 compare with past debates 2024-06-28 22:38:00+00:00 - The much-anticipated debate on Thursday night between President Joe Biden and former President Donald Trump drew an estimated 51.27 million viewers to the CNN presentation, Nielsen and CNN reported on Friday. The 90-minute debate, hosted by CNN and simulcast on an additional 16 television networks reported by Nielsen, featured just the two presumptive party nominees and was defined by rambling answers by the current president and lies and misstatements by his predecessor. The network telecast the event from its studios in Atlanta, providing a live feed to others free of charge but with conditions over its presentation and branding, CNN stated. How many people watched the first presidential debate of 2024? CNN drew 9.53 million television viewers to its flagship channel, including 3.379 million in the 25-54 demographic, the network said Friday. Fox News drew 9.276 million viewers, ABC News had 9.21 million and MSNBC drew 4.122 million viewers, according to the network. The first presidential debate of 2024 generated more than 30 million views on CNN's digital properties and on YouTube. "Across CNN's digital platforms, the debate was CNN's biggest debate ever and tied with our biggest live stream event ever with 2.3 million concurrent live views at 9:47 p.m," CNN stated. How do ratings compare to past debate viewership? While the network's biggest TV audience of the year, the count of those who watched Thursday night's debate on TV marks a 30% decline from 2020, when more than 73 million people watched the first debate between Biden and Trump across all TV networks. In 2016, a record 84 million people watched the first debate between Hillary Clinton and Trump. The previous most-watched program in CNN's history came in 2015, when a Republican debate featuring Trump and GOP competitors averaged 23.1 million viewers, the network relayed.
CDK cyberattack outage could lead to 100,000 fewer cars sold in June, experts say 2024-06-28 21:59:00+00:00 - What to know about the CDK Global cyberattack disrupting car dealers What to know about the CDK Global cyberattack What to know about the CDK Global cyberattack The CDK Global cyberattack is expected to cut auto dealerships' vehicle sales in June down by about 100,000, or more than 7%, compared with the same period in 2023. The projected decrease is not reflective of weak demand, but rather the anticipated consequence of some dealerships' reliance on CDK sales software for transactions. Many dealers have been without full access to their systems for more than a week, with no promise from CDK that they'll be back up and running by the end of the month. "An auto dealership is basically run by its dealer management system, or DMS — it's the financial backbone of these dealerships," Tyson Jominy, vice president of data & analytics at J.D. Power, told CBS MoneyWatch. "It connects all the pieces of a dealership together, including new and used vehicle sales and the financing. It's a very important operations system." The outage, which CDK has said was caused by a "ransom event," came at an inopportune time for car buyers and sellers. "June is one of the most important selling months for the auto industry, and we were expecting sales to be fairly strong," Jominy said. "It's part of the summer selling season, when families get out of school and want a new car to take a road trip." Fewer cars to be sold in June J.D. Power estimates that total new vehicle sales for June will reach 1,273,600 on the low end, reflecting a 7.2% decrease from June 2023. That includes car sales to regular consumers, as well as fleet sales to businesses or rental car companies. On an annualized basis, that would reflect a selling rate of about 15 million units for the full year, when the industry should be at 16 million, according to Jominy. The average transaction price for new vehicles is $45,000, meaning the hit to dealerships could be substantial in dollar terms. Some car sales lost in June could occur in July, if CDK systems are restored by then. "Because of the disruption to dealer software systems, June sales will not be reflective of actual consumer demand for new vehicles," Thomas King, president of the data and analytics division at J.D. Power, said in a statement. "Instead, a significant number of sales that would have occurred in June are now likely to occur in July." He added that there is still considerable variability to what the official sales tally will be for the month, given the ongoing uncertainty around when CDK systems will be fully restored. "Sales will be delayed, but the majority will likely occur in July shortly after the situation is rectified and sales are being made despite system outages," King added. Can I even buy a car now? CDK powers business operations for 15,000, or more than half, of all the auto dealerships across the U.S. Dealerships that don't rely on CDK's DMS are able to conduct business as usual, and could even be experiencing an uptick in business, according to Jominy. "If you really need car, you could still get one, but you'd need to find a dealer that uses one of CDK's competitors' products," Jominy said. Those dealers that are CDK customers have had to find workarounds to transact with customers, including recording sales manually with pen and paper. "If you're a consumer and you go to a dealership, the cars are still there and you could potentially maybe take one home, but dealerships are precluded from in some cases getting consumers approved for a loan, or being able to finalize transaction," Jominy said. "A dealership without DMS system is a bit like playing hockey without skates. You can still play, but it's going to be a lot slower and harder to do."
Diamond Shruumz products recalled due to toxin that has stricken 39 people in 20 states 2024-06-28 21:56:00+00:00 - Emergency room visits up for Americans 65 and older with cannabis poisoning Emergency room visits up for Americans 65 and older with cannabis poisoning 02:12 Prophet Premium Blends is recalling all of its Diamond Shruumz edible products sold nationwide because they contain toxic levels of a chemical found in certain mushrooms consistent with symptoms that have stricken 39 people in 20 states. The recall involves Diamond Shruumz cones, chocolate bars and gummies, both micro- and mega/extreme-dose, "because such products contain muscimol, a chemical found in mushrooms of the genus amanita," the Santa Ana, California-based company stated in a recall notice posted Friday by the Food and Drug Administration. "Muscimol could be a potential cause of symptoms consistent with those observed in persons who became ill after eating Diamond Shruumz products," according to the company. Reported symptoms include seizures, agitation, involuntary muscle contractions, loss of consciousness, confusion, sleepiness, nausea and vomiting, abnormal heart rates, and hyper/hypotension. The last illness onset occurred on June 23, 2024. In total there were 39 illnesses reported including 23 hospitalizations, according to the FDA. States with cases include: Alabama, Arizona, California, Colorado, Georgia, Indiana, Iowa, Kentucky, Maryland, Minnesota, Missouri, Montana, Nevada, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina and Tennessee. Friday's recall comes more than two weeks after the FDA warned consumers against eating any Diamond Shruumz microdosing chocolate bars, warning that people across four states had fallen ill, some of whom had to be intubated. The recalled 22 products were distributed nationwide through retail stores and mail orders. See the complete list here. Recalled Diamond Shruumz brand micro-dosing chocolate bars, cones and gummies. U.S. Food and Drug Administration Prophet Premium Blends on May 27, 2024, received two complaints of people becoming ill after eating an entire chocolate bar, prompting the company to review an analysis of its ingredients, which "showed higher than normal amounts of muscimol." The company has stopped producing and distributing the Diamond Shruumz product line as it and the FDA continue to investigate the cause of the serious adverse effects, Prophet Premium Blends stated. Image of recalled Diamond Shruumz micro-dosing product. U.S. Food and Drug Administration People who purchased Diamond Shruumz products are urged to stop using them, and contact the company at 209-314-0881 or email at info@diamondshruumz.com with their order number to initiate the refund.
Mass shooting in Arkansas leaves grieving community without its only grocery store 2024-06-28 17:06:00+00:00 - A steady rain was falling outside Fordyce High School, but that didn't deter an army of volunteers who raced to hand out jugs of milk and bags of groceries to a line of cars snaked around the parking lot. In the days since a shooter killed four people and injured 11 others at the Mad Butcher grocery, this town of 3,200 people has been grieving and grappling with the shock of a mass killing. But the community has also faced the void left by the temporary closure of its only grocery store. While the Mad Butcher's workers have been cleaning up from the aftermath of the violence in the south Arkansas store, residents have few nearby alternatives. Though the town has a Walmart and discount retailers with some food options, the closest grocery stores or supermarkets are located in neighboring cities at least half an hour away. "A lot of people don't have the ability to get there or elderly people don't want to go that far," said Darrin Brazil, the school's basketball coach, who organized the food pickup with two former classmates. "We just want to do that for the community for help people that really need that." The school, a city facility and churches are among sites set up for residents to pick up groceries while the store is closed and being cleaned up. Volunteers hand out bags of groceries and jugs of milk to cars lined up at Fordyce High School in Fordyce, Ark., Wednesday, June 26, 2024. The school is one of several food distribution sites that have been set up to help residents after a deadly mass shooting at the Mad Butcher grocery store. Andrew DeMillo / AP The struggle has highlighted concerns about "food deserts," areas without access to affordable, healthy food nearby. Similar efforts sprung up in Buffalo in 2022 after a white supremacist killed 10 people at a supermarket. "It's a basic need that people have. It's kind of bringing us together, to be honest," said Roderick Rogers, a city council member and pastor. "We're trying to respond with love to overcome this tragedy." The front of the Mad Butcher was still riddled with bullets on Wednesday as workers were inside cleaning up and making repairs. A makeshift memorial for the victims — including crosses, flowers and candles — was set up next to the parking lot. A banner reading "#WeAreFordyceStrong" hung under the store's name and green awning. "Temporarily closed" signs were taped to the store's front doors. "Please pray for our community," they said. Mourners gather for a candlelight vigil in the parking lot of the Mad Butcher grocery store where a makeshift memorial — including crosses, flowers and candles — was set up next to honor the victims. Colin Murphey / AP Police have not given a motive for the shooting. Travis Eugene Posey, 44, pleaded not guilty this week to four counts of capital murder and ten counts of attempted capital murder and is being held in a neighboring county's jail without bond. Posey was injured after a shootout with police officers who responded to the attack, authorities said. Police have said Posey was armed with a handgun and a shotgun, and multiple gunshot victims were found in the store and its parking lot. Authorities have said Posey did not appear to have a personal connection to any of the victims. Many of the volunteers stocking up bags and handing them out at the school on Wednesday knew the victims or someone who was in the store as the shooting unfolded. "The whole city of Fordyce is hurting over this," said Elvis Smith, the maintenance director for the school district. His wife was in the store during the attack and escaped through a back door. Houchens Industries, the Kentucky-based company that owns Mad Butcher, said it expected to reopen the store in the coming week, Little Rock television station KTHV reported. Residents driving through the school's parking lot said they hoped it would be sooner rather than later. "You definitely don't know what to do," said Jayda Carlson, who dropped by the school to pick up groceries with her grandmother-in-law on Wednesday. "Am I going to have to spend more money on gas to get groceries and stuff that we need?"
Qualcomm Stock: AI-Powered Growth Despite Volatility 2024-06-28 16:54:00+00:00 - QUALCOMM Today QCOM QUALCOMM $199.18 +4.03 (+2.07%) 52-Week Range $104.33 ▼ $230.63 Dividend Yield 1.71% P/E Ratio 26.77 Price Target $192.13 Add to Watchlist Qualcomm NASDAQ: QCOM is a dominant force in the semiconductor industry, designing and manufacturing wireless communication products and solutions. The industry is undergoing a significant transformation fueled by the burgeoning demand for AI-powered devices. This shift towards AI integration presents opportunities and challenges for companies like Qualcomm, requiring strategic agility and continuous innovation to maintain a competitive edge. Get QUALCOMM alerts: Sign Up Investor Interest Surges: Qualcomm's AI-Powered Growth Prospects Recent market activity provides an intriguing picture of investor sentiment towards Qualcomm's financial future. When reviewing Qualcomm’s option data, the research identified 20 large-scale Qualcomm options trades, a notable deviation from typical patterns. Out of the large trades, 19 were calls, totaling $1,535,047 in value, while only one put option was executed, amounting to $43,200. This disparity in value highlights the weight of bullish sentiment within this segment of investors, who appear to be collectively betting on a price surge. Their predicted trading range for Qualcomm sits between $170.0 and $210.0 within the next three months. QUALCOMM MarketRank™ Stock Analysis Overall MarketRank™ 4.65 out of 5 Analyst Rating Moderate Buy Upside/Downside 3.5% Downside Short Interest Healthy Dividend Strength Strong Sustainability -0.89 News Sentiment 0.85 Insider Trading Selling Shares Projected Earnings Growth 13.12% See Full Details Adding to this seemingly bullish landscape is Qualcomm's recent unveiling of its "Copilot+ PCs" at Computex 2024. This initiative, featuring PCs powered by Snapdragon X Elite and Snapdragon X Plus platforms, marks Qualcomm's entry into the AI-powered PC market. This expansion, combined with Qualcomm's established leadership in wireless technology, aims to unlock new avenues for growth and enhance profitability. This strategic move builds upon Qualcomm's core business of developing and licensing wireless technology, including the essential CDMA and OFDMA standards for mobile networks. Qualcomm is a leading supplier of wireless chips, providing processors to major smartphone manufacturers. The company's expansion into the automotive and IoT markets further illustrates its commitment to diversification, aiming to tap into new markets and foster sustained growth. Earnings Up, Stock Down: Qualcomm's Post-Q2 Trajectory Two months have passed since Qualcomm's earnings report for the second quarter of 2024, and a comparison with the current market metrics reveals intriguing shifts in investor perception and valuation. Qualcomm’s financial report showcased strong performance in its second quarter, exceeding earnings per share (EPS) expectations and highlighting impressive growth in its automotive segment. Examining Qualcomm's stock price movements reveals a more refined narrative. Despite the positive news, Qualcomm is now trading below $200, reflecting more than a 10% decrease from its rise to $227 after the earnings release date. This suggests that while the market acknowledges Qualcomm's achievements, other factors may be influencing investor sentiment. One potential explanation lies in the recent increase in short interest. The short percent of float has risen to 2.10%, a 15.82% increase from the previous month. This indicates that a growing number of investors are betting against the stock, potentially driving the price down despite the positive earnings report. However, the options trading data also provides a counterpoint, showcasing strong bullish sentiment among a segment of large retail and institutional investors. These investors are demonstrating confidence in Qualcomm's potential for growth. This bullish sentiment is likely driven by the company's strategic expansion into new markets, particularly the AI-powered PC sector with its "Copilot+ PCs" initiative. The current valuation metrics also reflect mixed sentiment. The forward price-to-earnings P/E ratio of 24.86 suggests positive earnings growth expectations, while the price-to-sales ratio of 6.08 indicates a premium valuation based on Qualcomm's sales potential. Overall, the picture that emerges after Qualcomm's Q2 earnings is one of cautious optimism. While the market acknowledges the company's strong performance and promising future prospects, concerns about short-selling activity and potential market volatility temper enthusiasm. Investors should closely monitor future earnings reports, strategic developments, overall market trends, and Qualcomm’s news headlines to make well-informed decisions about the company’s stock. QUALCOMM Incorporated (QCOM) Price Chart for Sunday, June, 30, 2024 Qualcomm: Driving Growth Through Diversification and Innovation Qualcomm's strategic focus centers on driving growth through diversification and continuous innovation. The company is actively investing in expanding its product portfolio to address various markets, including automotive, IoT, and PCs. In the automotive sector, Qualcomm is gaining significant traction with its Snapdragon Digital Chassis platform. This platform provides comprehensive solutions for connected cars, including in-car infotainment, advanced driver-assistance systems (ADAS), and vehicle-to-everything (V2X) communication. The company's automotive design win pipeline has grown to an impressive $45 billion, indicating strong future revenue potential. Qualcomm's commitment to AI-powered devices extends beyond PCs. The company is leveraging its expertise in AI technology to develop chips that power a wide range of devices, from smartphones to industrial IoT devices, capitalizing on the increasing demand for intelligent and connected experiences across various sectors. Strategic Initiatives and Market Risks: A Closer Look at Qualcomm Despite its strong market position and strategic initiatives, investors should be aware of certain risks and considerations associated with Qualcomm. Competition in the semiconductor industry is intense, with companies like Intel NASDAQ: INTC, Samsung OTCMKTS: SSNLF, and MediaTek OTCMKTS: MDTKF constantly vying for market share. Qualcomm's dependence on specific customers, particularly in the smartphone market, also poses a risk, as shifts in customer relationships or market dynamics could impact its revenue streams. Additionally, the cyclical nature of the semiconductor industry makes Qualcomm vulnerable to economic fluctuations and potential downturns in demand. Investors should carefully evaluate these factors and monitor Qualcomm's performance and strategic initiatives to assess potential investment risks and opportunities. The Road Ahead: Qualcomm's Future with Calculated Considerations Qualcomm's recent financial performance, strategic initiatives, and focus on innovation highlight its potential for continued growth in the coming years. The company's strong position in the automotive and AI-powered device markets and its expanding product portfolio create a compelling narrative for investors seeking exposure to the future of connected intelligence. However, the competitive landscape of the semiconductor industry, potential risks associated with customer concentration, and the market's inherent cyclicality warrant careful consideration. Investors should approach Qualcomm with a balanced perspective, acknowledging the possible rewards and inherent risks of investing in this volatile and evolving sector. Before you consider QUALCOMM, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and QUALCOMM wasn't on the list. While QUALCOMM currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
The Federal Reserve's preferred inflation tracker shows cooling prices. Here's the impact on rates. 2024-06-28 16:35:00+00:00 - An inflation measure closely tracked by the Federal Reserve slowed to its smallest annual increase in three years, prompting some Wall Street economists to forecast an increased likelihood that the central bank could cut rates in September. The personal consumption expenditures index, or PCE, rose 2.6% in May on a year-over-year basis, the U.S. Commerce Department said on Friday. That represents its lowest increase since March 2021, according to EY senior economist Lydia Boussour in a Friday report, adding that it signals "cooler consumer spending momentum and easing inflation." The Federal Reserve earlier this month scaled back its forecast to just one rate cut in 2024 from its prior expectation for three reductions due to stubborn inflation, which remains higher than the central bank's 2% annual target. Friday's PCE numbers could portend an increasing likelihood that the Fed could cut rates at its September meeting, Wall Street economists said. "[T]he market is now giving the Fed the green light to consider a rate cut at their September 18th meeting. Currently, the odds for a rate cut at that meeting are approximately 75%," wrote John Kerschner, head of U.S. securitised products at Janus Henderson Investors, in a Friday email. Excluding volatile food and energy prices, so-called core inflation rose 0.1% from April to May, the smallest increase since the spring of 2020, when the pandemic erupted and shut down the economy. Prices for physical goods actually fell 0.4% from April to May. Gasoline prices, for example, dropped 3.4%, furniture prices 1% and the prices of recreational goods and vehicles 1.6%. On the other hand, prices for services, which include items like restaurant meals and airline fares, ticked up 0.2%. The Fed has raised its benchmark rate 11 times since 2022 in its drive to curb the hottest inflation in four decades. Inflation has cooled substantially from its peak in 2022, yet average prices remain far above where they were before the pandemic, a source of frustration for many Americans and a potential threat to President Joe Biden's re-election bid. —With reporting from the Associated Press.
Is CAVA Overextended? A Closer Look at This High-Flying Stock 2024-06-28 14:36:00+00:00 - CAVA Group Today CAVA CAVA Group $92.75 +1.18 (+1.29%) 52-Week Range $29.05 ▼ $97.64 P/E Ratio 226.23 Price Target $81.50 Add to Watchlist As the second quarter and first half of the year come to a close, CAVA Group Inc. NYSE: CAVA has gained significant attention for its remarkable stock performance, making it a standout name so far. Up 113% year-to-date, the stock has outperformed both its sector and the broader market. From a technical analysis perspective, CAVA shares appear poised for further gains, consolidating just 6% off their highs in a tight range and trending above all major moving averages. Get CAVA Group alerts: Sign Up CAVA: Leading the Mediterranean Fast-Casual Dining Revolution CAVA Group, Inc. is a pioneering brand in the Mediterranean fast-casual dining space. Since its inception, CAVA has redefined this category, offering healthy food choices with bold and satisfying flavors on a large scale. The company's vision extends beyond the Mediterranean segment, positioning it as a key player in the broader limited-service restaurant and health and wellness food categories. CAVA's success lies in its ability to appeal to a wide range of customers across different demographics, including various age groups, genders, and income levels. However, like any company, CAVA faces risks and challenges. Intense competition in the fast-casual and health-focused restaurant segments threatens CAVA's ability to maintain and expand its market share. The competitive landscape features well-established players and new entrants vying for consumer attention. To stay ahead, CAVA must continue differentiating itself through menu innovation, quality, and exceptional customer service. CAVA's Key Metrics Suggest Caution While CAVA's stock performance has provided ample reasons for investor satisfaction, examining its vital performance and valuation metrics is crucial. On May 28th, 2024, CAVA reported $0.12 earnings per share for the quarter, surpassing analysts' consensus estimates of $0.04. The company posted revenue of $259.01 million, beating the consensus estimate of $246.02 million and marking a 27.5% increase compared to the same quarter last year. However, when compared to industry benchmarks, CAVA's valuation metrics suggest caution. The stock boasts a P/E ratio of 359 versus the industry average of 32.9 and a price-to-sales ratio of 171 compared to the industry average of 20.07. Additionally, CAVA's one-year performance surge of 116% sharply contrasts with the industry average decline of 3.7%. These lofty metrics and a forward P/E of 205 indicate that CAVA may be overvalued and potentially due for a significant pullback. Analysts Maintain Moderate Buy on CAVA Despite Valuation Concerns CAVA Group MarketRank™ Stock Analysis Overall MarketRank™ 1.98 out of 5 Analyst Rating Moderate Buy Upside/Downside 12.1% Downside Short Interest Healthy Dividend Strength N/A Sustainability N/A News Sentiment 0.70 Insider Trading Selling Shares Projected Earnings Growth 35.29% See Full Details With its solid earnings and growth, analysts have maintained a moderate buy rating on CAVA based on 14 analyst ratings. However, the consensus price target of $81.5 suggests an 11% downside, reflecting concerns about the stock's valuation. Recent insider activity also raises red flags. Over the past 12 months, there have been six insider sales totaling almost $350 million, with no insider purchases. In June alone, insiders sold over $120 million worth of stock. CAVA's Stock Outlook: Growth Potential vs. Caution Signals While CAVA's earnings continue to improve and the company demonstrates growth, its stock's valuation and recent insider activity suggest caution. For traders, the stock's current setup might present a momentum play. However, potential investors might consider waiting for a correction, as the stock appears overextended relative to its fundamentals and sector performance. CAVA Group, Inc. (CAVA) Price Chart for Sunday, June, 30, 2024 Before you consider CAVA Group, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and CAVA Group wasn't on the list. While CAVA Group currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Nokia Explores Deal for US Networking Company Infinera 2024-06-28 05:18:00+00:00 - (Bloomberg) -- Nokia Oyj is exploring a potential acquisition of Infinera Corp., a maker of optical telecommunications equipment, people familiar with the matter said. Most Read from Bloomberg The Helsinki-based communications group has been studying the feasibility of a deal for US-listed Infinera, according to the people. An announcement could come within days, they said. Shares in Infinera have risen 15% over the last 12 months, giving the company a market value of about $1.2 billion. Deliberations are ongoing and there’s no certainty they’ll result in a deal, the people said, asking not to be identified discussing confidential information. A representative for Nokia declined to comment, while a spokesperson for Infinera couldn’t immediately be reached for comment. Based in San Jose, California, Infinera provides networking hardware and software to mobile phone operators, Internet content providers and governments, among others, according to its website. The company is led by Chief Executive Officer David Heard. --With assistance from Dinesh Nair. Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.
Nike revenue misses estimates: What it will take to spur sales 2024-06-28 04:48:00+00:00 - Nike (NKE) reported mixed fourth quarter results. The athletic apparel giant reported adjusted earnings of $1.01 per share compared to the $0.85 estimate. However, revenue of $12.61 billion fell short of the $12.86 billion estimate. Morningstar senior equity analyst David Swartz thinks it was the revenue miss that sent shares lower in after-hours trading. The company reported slightly better-than-expected revenue numbers in China. Swartz thinks "the China numbers are still pretty low compared to what Nike should be doing and can do in China," adding that its sales recovery in the country is likely taking longer than many had hoped. On what could cause Nike to reignite sales growth, Swartz thinks new products will help, but that the impact likely won't be felt until late into fiscal 2025. For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Stephanie Mikulich. Video Transcript But we want to break down these results that are crossing the wire again, beating estimates on earnings per share of revenue coming in light of estimates. And here to dive a little bit deeper into this print is David for senior equity analyst at Morningstar Research. David. Thank you so much for joining the program. What sticks out to you here? It seems like we got a bit of a mixed bag but shares are down more than five, right, right, around 5%. Yeah, I think the sales number is is pretty weak down 2%. So I was looking for a 1% sales growth number for the quarter. So the sales were light, I think that's probably the the main concern. As you mentioned, the EPS was above estimates. Uh I was at uh 88 cents and, and 90 reported 99 cents. That's really been common though Nike has consistently uh beaten EPS estimates in recent quarters. So probably people expected that although some analysts have lowered their EPS numbers, it looks like mainly that the performance was due to lower operating costs. Are you surprised by these, these uh the greater China numbers, David, it looks like 1.86 billion that does just beat the estimates 1.83 billion. What, what are the puts and takes in that market for Nike? I think that the China numbers are still pretty low compared to what Nike should be doing and and can do in China. Um You know, I think Nike can get back to double digit sales growth in China. We haven't seen that recently. Um So I think that people are still concerned that Nike uh is still not really performing that well in China. Now, Nike just opened up a big house of flight store in Beijing. Story continues Uh Nike's been doing a huge amount of marketing in China, so it's certainly a big focus to the company, but it does seem that Nike's um recovery there is taking a little bit longer than people probably hoped. So, David, how can Nike re reignite and reinvigorate this sales group? Does it all come down to that product innovation? That's certainly a big part of it. Uh We do have a lot of Nike products coming out later this year. Nike held a big marketing event in Paris recently ahead of the Olympics. Nike will be releasing a lot of products around the Olympics. They also be doing a lot of marketing and also a lot of new products in the following winter seasons. Most likely we won't see a big impact on sales from the new products until fiscal 2025 probably late in the year, uh late in the fiscal year. So, um, that's probably a bit of a concern for investors that it could be a, another couple of quarters before Nike sort of gets back to sales quote. And, and David, what, what is in the, in talking about the product innovation, what's in the pipeline here that we know about that you think is gonna excite consumers and investors. Well, Nike has a lot of new running shoes out, new technologies, you know, new versions of air and, and its other main products. Um We'll have to see exactly, you know whether any of them are big enough to drive sales. It has been some years since um Nike put out uh vapor Max and, and other top selling products. Uh We have, I haven't seen necessarily things recently that were too innovative in the sense that they drew customers away from competitors and we have seen competitors like on especially um that have, have probably taken some share from Nike. Um So we'll have to see uh but definitely Nike is investing heavily in, in new shoe technology. And how do you think the economic environment is playing into this when you think about discretionary spending, high inflation? Is that something that you're seeing impact, not only Nike, but a lot of these competitor brands as well? Yeah, definitely, you know, the sportswear market right now is pretty uneven most of the companies in this industry have said that including Puma Adidas Under Armour and others. Uh Now we have seen some that have performed well. Uh certainly, you know, dick sporting goods, for example, in the US has been doing fine. Um Some other sporting goods stores haven't been doing quite as well. Um So we we have seen kind of a mixed bag uh from both the manufacturers and retailers of athletic products. But generally, I have to say that the economic conditions are not not entirely favorable. We have seen a shift in spending and I think towards travel in a way from consumer goods and apparel and footwear specifically. And we should know here, David that there is a statement by, by execs two here CFO talked about how their fourth quarter results highlighted challenges. He says that have led us to update our fiscal 25 outlook. Um I'm just trying to think about, you know, potential catalysts ahead, David. You know, some folks point to the Olympics, of course, is that a potential tailwind for Nike, the Olympics itself probably does not generate a lot of significant sales for Nike more than it would normally do. Uh but it is a marketing opportunity. Um And Nike also will benefit from other major sporting events including the Euro Cup, which is currently going on right now. Um But you know, it does provide Nike with a more stable uh product development site cycle. The last Olympic cycle was really messed up because of course, the Olympics were delayed by a year in summer Olympics and then there were no fans in the stands and it really did not work out, uh you know, as normal. So, uh I think that Nike is excited to be back towards a normal uh athletic cycle and that does affect Nike's product cycle and its marketing plans. Earnings call is right around the corner here. What do you want to hear from management when it comes to this report? Is there, is there anything management could say to alleviate some of the investor concern that we're seeing play out in the stock price right now? Yeah, definitely the gross margin is not up to where it should be. And and Nike had told us that gross margins would start to recover. So that's something that will, that will definitely come up on the call. I also think that we'll hear some commentary about the sales outlook and the major uh regions, North America, Western Europe and China. Um and we'll see, you know what they say about when those markets may be getting back to stronger numbers. Uh Certainly, uh you know, in terms of China's giving back to probably double the sales growth. And in Western Europe and North America, it's, it's back to positive, you know, sales growth and maybe the mid single digits. Um So we'll have to see if we get any guidance from Nike about how many quarters it may be before we start to see numbers like that. David always appreciate your rapid fire response and reaction to these reports. Thanks for joining us. Thank you.
Stock market today: Stocks inch higher with key inflation print looming 2024-06-28 04:07:00+00:00 - US stocks were little changed on Thursday as investors assessed fresh economic data ahead of an inflation reading key to Federal Reserve policy. The S&P 500 (^GSPC) rose nearly 0.1%, edging back toward an all-time high. The Dow Jones Industrial Average (^DJI) also rose about 0.1%. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) led the gains, gaining 0.3%. Memory maker Micron's (MU) shares slid more than 7%, dragging chip stocks. Nvidia (NVDA) was down nearly 2%, reviving worries of a return to the sell-off that rattled markets last week. Investors were weighing a new batch of economic data ahead of the PCE inflation print on Friday that will influence the Fed's thinking on the timing of interest rate cuts. A reading on initial weekly jobless claims came in at 233,000, a decrease of 6,000 from the previous week, according to Department of Labor data. The print came in below a consensus expectation of 235,000. But recurring jobless claims rose to their highest since late 2021, suggesting it's taking longer for unemployed people to find a job. Real gross domestic product (GDP) increased at an annual rate of 1.4% in the first quarter of 2024, according to the third estimate by the Bureau of Economic Development released on Thursday morning. The print was slightly higher than the prior estimate of 1.3%. Inflation could also loom large in the first debate between President Joe Biden and former President Donald Trump on Thursday night. On the corporate front, Levi Strauss (LEVI) shares sank over 15% in the wake of a second quarter revenue miss for the jeans seller.
Chipotle sales have been on fire. Here are 3 ways the burrito chain can keep them sizzling. 2024-06-28 04:05:00+00:00 - Chipotle (CMG) has been winning over investors, with shares up nearly 40% year to date against a difficult restaurant landscape as consumers pull back due to higher prices. One analyst thinks there are more levers the fast-casual restaurant could pull to keep the flame burning long-term. Chipotle ramping up its operating hours is one lever, wrote Bernstein analyst Danilo Gargiulo, who has an Outperform rating and price target of $80 on the stock, following Wednesday's 50-for-1 stock split. Both Wall Street and Main Street have long anticipated late-night or breakfast hours from the burrito chain. Revamping Chipotle's loyalty program could also boost sales. As chains ramp up personalized offerings via rewards, Chipotle could also increase its own loyalty benefits. Though the chain doesn't break out how many reward members it has, digital sales represented 36.5% of total food and beverage revenue in the first quarter. Chipotle's key audience, Gen Z, presents a crucial runway for the company too, as the demographic increasingly becomes household decision-makers. Gargiulo wrote that Gen Z has a significant brand affiliation with Chipotle and engages more with the brand than its peers on TikTok, which tends to skew to a younger audience of mostly 18-to-24-year-olds. Chipotle boasts 55.4 million likes on the social media platform, while CEO Brian Niccol's old stomping grounds, Taco Bell (YUM), trails with 51.7 million likes. Farther behind are McDonald's (MCD), with 30.1 million likes, and Wendy's (WEN), with 20.6 million. A Chipotle Mexican Grill employee prepares food on Dec. 15, 2015, in Seattle. (AP Photo/Stephen Brashear) (ASSOCIATED PRESS) In addition to those three long-term drivers, Gargiulo noted Chipotle's category strength represents yet another tailwind for the company. Chicken is gaining popularity, as Yahoo Finance previously reported, and the cheaper protein is easier on consumers' tightening wallets, aligns with healthy eating trends, and allows companies more room for innovation. Gargiulo projects the market for chicken will grow by 7% over the next five years at limited-service restaurants. The market for casual dining in Latin America is growing rapidly too. It grew 8% from 2018 to 2023 and is expected to grow another 6% from 2023 to 2028. Investors hope the momentum of recent quarters sticks around. In the first quarter, Chipotle blew past revenue, earnings, and same-store sales expectations yet again. Post-stock split, shares of Chipotle are still trading at a higher price than when the company went public in 2006 at $22 per share. The stock hovered around $62 per share as of Thursday's market close. Story continues In a note to clients, TD Cowen analyst Andrew Charles wrote that the firm believes Chipotle is "well positioned to deliver mid-single digit same-store sales annually over the medium term," driven by its omnichannel approach, Chipotlane drive-through innovation, and consumers' interest in ingredient transparency. Charles now has a price target of $72 on the stock. Typically, stock splits are bullish for companies that conduct them. As Yahoo Finance's Seana Smith reported following Nvidia's (NVDA) 10-for-1 stock split earlier this month, stock splits tend to see an average return one year later of 25% versus about 12% for the broader market, according to analysis from Bank of America. Year to date, Chipotle shares are up 38%, outpacing the S&P 500's (^GSPC) 15% gain. — Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com. Click here for the latest stock market news and in-depth analysis, including events that move stocks Read the latest financial and business news from Yahoo Finance
Here's the Net Worth of Married Couples by Age: How Do You Stack Up? 2024-06-28 04:00:00+00:00 - SmartAsset: Average Retirement Savings for Married Couples by Age A recent study from the career experts Zety says that 40% of respondents fear retirement more than death. And almost nine in 10 responded that their biggest retirement fear is not having enough income. For married couples, planning retirement for two people can be complicated. How much they will need will depend on their financial circumstances. Here’s a breakdown of the average retirement savings for couples by age. A financial expert could help you create a financial plan for your retirement needs and goals. What Are Average Retirement Savings By Age? Unfortunately, many Americans aren’t putting enough money away for their future. In fact, 25% of Americans have no retirement savings at all according to a report from PWC. And among those who haven’t saved enough for retirement, EBRI research estimates that households as of January 2020 saved $3.68 trillion less than what they should have in their retirement accounts. Another study by Vanguard calculated the average 401(k) balances by age. The table below breaks down average and median balances by age group: <25 Average 401(k) balance: $6,718. Median 401(k) balance:$2,240 25-34 Average 401(k) balance: $33,272. Median 401(k) balance: $13,265 35-44 Average 401(k) balance: $86,582. Median 401(k) balance: $32,664 45-54 Average 401(k) balance: $161,079. Median 401(k) balance: $56,722 55-64 Average 401(k) balance: $232,379. Median 401(k) balance: $84,714 65+ Average 401(k) balance: $255,151. Median 401(k) balance: $82,297 On average, someone under age 25 is saving less than $7,000, while someone between ages 55 and 64 averages just over $232,000. This data breaks down individual balances by age group, but for married couples, targets will differ depending on the couple’s age, household income and whether there is a sole earner or dual income. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now. Retirement Savings Benchmarks for Married Couples SmartAsset: Average Retirement Savings for Married Couples by Age Financial experts say that a couple aged 60 with a dual income of $75,000 per year should have seven times their household income in their retirement account. This multiplies to a total of $525,000 saved. Conversely, a couple aged 65 with a sole earner bringing in $75,000 per year should have saved seven and a half times their household income, which adds up to $562,500 in their retirement account. The table below breaks down savings targets based on data assumptions made by the investment management firm T.Rowe Price. In parenthesis you will see how many times over your current household income you should have: Story continues Household Income Married, Dual Income at Age 55 Married, Dual Income at Age 65 Married, Single Income at Age 55 Married, Single Income at Age 65 $75,000 $412,500 (5.5x) $675,000 (9x) $337,500 (4.5x) $562,500 (7.5x) $100,000 $600,000 (6x) $1 Million (10x) $500,000 (5x) $850,000 (8.5x) $150,000 $975,000 (6.5x) $1.575 Million (10.5x) $900,000 (6x) $1.500 Million (10x) $200,000 $1.300 Million (6.5x) $2.200 Million(11x) $1.400 million (7x) $2.300 Million (11.5x) $250,000 $1.700 Million (7x) $2.875 Million (11.5x) $1.875 Million (7.5x) $3.125 Million (12.5x) Why You Should Not Rely on Social Security Alone As of January 2022, retired couples who receive Social Security benefits collect an average of $2,753 per month. This amount equates to what you could get with a minimum wage job. So, for many American couples, this might not be sufficient to maintain their lifestyle once they enter into their golden years. On top of that, many older Americans are carrying more debt, which will eat into their Social Security income. So when you’re creating a retirement plan as a couple, financial experts will advise to assess your financial situation and make adjustments accordingly. Regardless of your income level, mapping out your financial situation is a smart way to prepare for retirement. This big-picture perspective will help you be more intentional with how much money you are putting into your retirement savings and avoid a possible income gap later in life if your needs outpace your savings. Consider consulting a financial advisor to find an appropriate strategy for growing your net worth. Bottom Line SmartAsset: Average Retirement Savings for Married Couples by Age When looking at the average retirement savings for married couples by age, the data is sobering. Even if you save more than the recommended amounts and plan to apply for Social Security benefits, you may still not have enough to live the life you desire in retirement. Financial professionals often treat retirement savings as a destination with several checkpoints along the road. While some experts recommend you save at least one year’s worth of your household income by the time you reach age 30, it doesn’t hurt to save even more. When you are ready to retire, it’s a good benchmark to strive for at least 9x to 11x your household income in savings. But because your needs will vary as a married couple, you will need to assess your financial situation and make adjustments accordingly. A good rule of thumb is to save between at least 10% and 15% of your household income each year. Tips to Help You Save for Retirement According to the Federal Reserve, 60% of those with self-directed retirement accounts are not confident about their investment decisions. If you’re one of them, why not hire a financial advisor? SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. Counting on Social Security benefits alone likely won’t provide full support for your current lifestyle. But, benefits can definitely help with your living expenses in retirement. SmartAsset’s Social Security calculator will help you estimate how much of a benefit you can expect. And, if you want to figure out whether you are saving enough for retirement, SmartAsset’s free retirement calculator can help you determine how much you will need. Keep an emergency fund on hand in case you run into unexpected expenses. An emergency fund should be liquid -- in an account that isn't at risk of significant fluctuation like the stock market. The tradeoff is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks. Photo credit: ©iStock.com/Geber86, ©iStock.com/SrdjanPav, ©iStock.com/Doucefleur The post Average Retirement Savings for Married Couples By Age appeared first on SmartAsset Blog.
Three REITs That Are Extremely Oversold 2024-06-28 03:03:00+00:00 - Three REITs That Are Extremely Oversold Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. As stock prices fluctuate, they can sometimes reach extremes of being overpriced or underpriced relative to their fair value. If prices rise too much, the stock can become "overbought," and the risk of profit-taking resulting in a price correction becomes greater than the potential reward of further appreciation. However, when stocks fall too much, buyers step in and the potential for a price rebound becomes greater than the risk of continuing decline. Two useful measures of oversold stocks occur when the RSI is at or below 30 and the stochastic oscillator is at or below 20. As the share price improves, the emergence of these two indicators out of oversold territory confirms the likelihood of further gains. Don't Miss: Miami is expected to take New York’s place as the U.S. Financial Capital. Here’s how you can invest in the city before that happens. Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. This platform allows individuals to invest in commercial real estate. Take a look at three real estate investment trusts (REITs) that for various reasons have recently suffered substantial losses and are now in or near technically oversold territory: Uniti Group Inc. (NYSE:UNIT) is a specialized REIT based in Little Rock, Arkansas. It acquires and constructs mission-critical communications infrastructure in the form of fiber optics for data, copper, and coaxial broadband networks. It owns and operates 140,000 fiber route miles covering 320,000 commercial buildings with over 28,600 customer connections in 300 metro markets. Most of its network is in the Eastern and Midwestern portions of the U.S. It's one of the 10 largest fiber providers in the U.S. today, and fiber optic leasing generates the bulk of its total revenue. The demand for data and thus fiber has been increasing due to the advent of 5G networks and the growth of Artificial Intelligence (AI). Trending: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? On May 3, Uniti Group announced a merger with Windstream Holdings II, LLC, in a deal that gives Uniti shareholders 62% and Windstream shareholders 38% of the outstanding common equity of the combined companies. The deal made sense because Uniti is a national wholesale fiber network and Windstream, one of Uniti's tenants, is a fiber-to-home business. When the merger is complete in the second half of 2024 (subject to shareholder and regulatory approval), Uniti will have 217,000 fiber route miles across 47 states and $4 billion in revenue. Story continues Uniti also announced plans for a $300 million offering of 10.50% Senior Secured notes by its subsidiaries, with notes due in 2028. Proceeds may be used to fund the Windstream merger rather than using Uniti's bridge loan facility. Unfortunately, Wall Street was unhappy with the proposed merger and shares of Uniti began selling off. Then, on May 6, Raymond James downgraded Uniti Group from Strong Buy to Outperform and lowered the price target from $8 to $6. Shares had been trading near $5.75, but the downgrade and price cut sparked a further sell-off that took shares down to $2.57 by mid-June. Uniti shares are now extremely oversold, with the 14-period RSI at 28.45 and the Full Stochastic at 20.61. Peakstone Realty Trust (NYSE:PKST) is an El Segundo, California-based REIT with a diversified portfolio of single-tenant office and industrial properties. Peakstone calls itself "America's Blue-Chip Landlord" and, as of April, had 67 properties with 16.6 million square feet of space across 22 states in high-growth markets. Ninety-six percent of its portfolio is leased with a six-year weighted average lease term (WALT). Peakstone launched its IPO on April 13, 2023. As a new REIT with numerous office properties, Peakstone shares have been extremely volatile since the IPO. Shares initially ran from $7.60 to $38.12, then back to $12 by November 2023. After a short end-of-year rally to $21.42, shares have slowly declined throughout 2024 to a recent low of $10.77. Investors may have been disappointed that Peakstone sold four properties within the past year as that hurts future revenue and Funds from Operations (FFO). On May 9, Peakstone declared a $0.225 per share quarterly dividend, in line with its previous dividend. The present yield on the $0.90 annualized dividend is 8.30%. The full stochastic is now at 7.30 and the 14-period RSI is at 29.26, putting Peakstone Realty in an extremely oversold condition. Clipper Realty Inc. (NYSE:CLPR) is a small, self-administered, and self-managed REIT based in New York City. It was formed in 2017 and owns, manages, and operates 11 multifamily residential and commercial properties. On May 7, Clipper Realty declared its first quarter 2024 operating results. FFO of $0.14 per share beat the consensus estimate of $0.12 and was a 27.27% increase over FFO of $0.11 in Q1 2023. However, the revenue of $35.760 million came in a bit shy of the estimate of $36.008 million. Still, Clipper improved over the Q1 2023 revenue of $33.667 million. After Clipper Realty touched $5.38 in mid-December, it's been all downhill, with shares recently touching $3.47. Shares are now oversold with the full Stochastic at 11.31. However, the 14-period RSI, which hit a low of 20 in April, has begun to strengthen and has since risen to 36. This is called a "Bullish divergence" and often precedes a period of price appreciation. Investors should keep in mind that an oversold condition does not guarantee a profitable purchase, it merely shows that the stock is now at a point where more buyers than sellers feel the stock is undervalued and may step in to purchase shares. More on Real Estate Investing: Elon Musk and Jeff Bezos are bullish on one city that could dethrone New York. Investing in its booming real estate market has never been more accessible. This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100. This article Three REITs That Are Extremely Oversold originally appeared on Benzinga.com
Walgreens CEO calls consumers 'increasingly selective and price-sensitive' as retailer cuts profit outlook 2024-06-28 01:57:00+00:00 - Walgreens' (WBA) quarterly results are the latest sign that US consumers are increasingly under pressure. Shares of Walgreens Boots Alliance tanked 24% on Thursday after the retail pharmacy chain lowered its full-year guidance due to challenging pharmacy industry trends and a "worse-than-expected” consumer environment, with management citing "a sustained pullback" in discretionary spending. “In US Retail pharmacy, we witness continued pressure on the US Consumer. Our customers have become increasingly selective and price-sensitive in their purchases,” CEO Tim Wentworth told analysts during the company's earnings call on Thursday morning. The company is the latest retailer to call out a more cautious consumer amid an environment of persistently sticky inflation and high interest rates. The pharmacy chain's quarterly report comes as the Federal Reserve weighs when and how quickly to begin cutting interest rates. Any cracks in the economy could prompt the central bank to act sooner rather than later. Its most recent forecast was for one cut this year. Walgreens expects adjusted earnings per share for the year to come in between $2.80 and $2.95, down from its prior forecast of $3.20 to $3.35. A challenging consumer backdrop has prompted Walgreens to lower prices across health and wellness, personal care, and seasonal categories. Jeff Jonas, portfolio manager at Gabelli Funds, told Yahoo Finance he expects other pharmacy companies like CVS (CVS) to face similar consumer headwinds. “With higher prices at the pharmacy, consumers aren’t paying that anymore. They’re going to Amazon, they’re going to Costco or Walmart. So that’s forcing the pharmacies to cut price on a lot of those front [of] store items, which directly hurts the profit margins.” Retail sales data for May revealed that the pace of consumer spending is cooling down from last year, a sign that high interest rates and inflation are weighing on consumers. Last month, Home Depot's CEO signaled the home improvement retailer's results were "impacted by a delayed start to spring and continued softness in certain larger discretionary projects." Also in May, Starbucks' (SBUX) stock sank nearly 16% during one session after the coffee giant missed its quarterly results, with same-store sales in the US dropping 3% versus Wall Street expectations for a gain of just over 2%. Stretched consumers have gotten pickier in the grocery aisles as well, recently leading to weaker current quarter expectations from meat giant Tyson Foods (TSN). Story continues General Mills headquarters in Minneapolis, Minnesota, USA, May 5, 2023. General Mills is an American multinational manufacturer and marketer of branded processed consumer foods. (JHVEPhoto via Getty Images) (JHVEPhoto via Getty Images) On Thursday, investors will watch for other clues on how consumers are holding up in Nike's (NKE) scheduled fiscal fourth quarter results after the bell. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
Amid a divisive political landscape, advertisers bet on unity 2024-06-28 01:16:00+00:00 - Johnsonville, Wisconsin — Jamie Schmelzer is not a mental health professional — he's a marketing executive for meat processing giant Johnsonville. But the inflamed and antagonistic state of U.S. politics has led his company to shift gears somewhat in its message. "We do not pretend that we have what it takes to save America," Schmelzer told CBS News. "We know the world is full of serious problems that sausage can't solve." The company's new national ad campaign begs Americans to "turn down the temperature" to find common ground. "We believe that most people are mostly good, and they should be treated that way," the narrator says in the new ad campaign. "And that means less trolling and more tailgating, less doomscrolling and more dinner parties." Schmelzer said the company's view is that "this campaign is cultural more than political, but we also fully recognize that those two things have become kind of inseparable." Johnsonville had a hunch the country was on edge, so it took a stab at something politicians do: polling. It found that eight out of 10 Americans are exhausted by the anger and negativity in the U.S. It also found that many Americans are attending fewer gatherings than they used to. Isolation is not good for Johnsonville's products, Schmelzer said. "Johnsonville makes hangout food," Schmelzer explains. "We like to say that sausage for one almost doesn't exist." It's not just Johnsonville preaching calm and togetherness. You can find similar echoes in ad campaigns from Miller Lite and La-Z-Boy — attempting to sell less fighting and more relaxation. "They're paying attention to our own thoughts as a society," said Dr. Andrew Cohen, a cultural sociologist who specializes in advertising. "…It's a great place for these brands to play in. Saying, you know, we can't deny the reality that people are heated, that it's really hard to go to your family's cookout and get in a fight with your uncle over some political views that you don't agree about." CBS News traveled to the battleground states of Georgia and Wisconsin to show voters the ads and ask how they view the country. "Everyone in this country feels a little bit on edge," said Kris Stubbs of Georgia. Shermaine Williams of Cobb County, Georgia, told CBS News, "Everybody's anxiety and emotions are high, and we just need to chill," Those feelings match Johnsonville's research, as well as recent warnings from U.S. Surgeon General Vivek Murthy about the "epidemic of loneliness" and the toxicity of social media. "People seem to isolate themselves too much," said Debbie Reagles of Kenosha, Wisconsin. "Isolation, it's a bad thing, you know? Advertisers hope that bridge building and slowing down is a message that sells to an anxious nation in short supply of unity. "It's kind of a pep talk for America to remember to make time, take a break and have some fun with some people that you like," Schmelzer said.