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Once a Sheriff’s Deputy in Florida, Now a Source of Disinformation From Russia 2024-05-29 14:00:14+00:00 - A dozen years ago, John Mark Dougan, a former deputy sheriff in Palm Beach County, Fla., sent voters an email posing as a county commissioner, urging them to oppose the re-election of the county’s sheriff. He later masqueraded online as a Russian tech worker with a pseudonym, BadVolf, to leak confidential information in violation of state law, fooling officials in Florida who thought they were dealing with a foreigner. He also posed as a fictional New York City heiress he called Jessica, tricking an adviser to the Palm Beach County Sheriff’s Office into divulging improper conduct by the department. “And boy, did he ever spill ALL of the beans,” Mr. Dougan said in a written response to questions for this article, in which he confirmed his role in these episodes.

Decker's Stock Surges Like Nvidia Through $1,000 on Robust Growth 2024-05-29 13:57:00+00:00 - Key Points Deckers reported a blowout fiscal Q4 2024 EPS beat by $1.94 as revenues surged 21.2% YoY to $956.76 million vs $892 million consensus estimates. Direct-to-consumer (DTC) sales rose 21% YoY to nearly 40% of total sales, while Wholesale net sales surged 21.4% YoY to $544.6 million. Deckers' most popular brands, UGG sheepskin boots and shoes, and HOKA athletic and outdoor performance shoes stole the spotlight as consumer demand soared. 5 stocks we like better than Deckers Outdoor While artificial intelligence (AI) chip maker Nvidia Co. NASDAQ: NVDA garnered the spotlight on its stock surge through $1,000, a retailer that gapped through the $1,000 barrier received less fanfare. The price action appears similar, but these companies are in completely different sectors: computer and technology and consumer discretionary. Outdoor lifestyle apparel and footwear maker Deckers Outdoor Co. NYSE: DECK shares shot through $1,000 and all-time highs under the radar when it released its fiscal Q4 2024 earnings results. However, the company issued slightly lower guidance than consensus estimates, but shares continued to roar higher. Get Deckers Outdoor alerts: Sign Up Deckers competes with outdoor apparel retailers, including Canadian Goose Holdings Inc. (NYSE: GOOS), Visto Outdoor Inc. NYSE: VSTO, V.F. Corp. NYSE: VFC, and Columbia Sportswear Co. NASDAQ: COLM. Deckers' Brands Soar in Popularity: UGG, HOKA, Teva, AHNU, and Sanuk in High Demand Deckers Outdoor Today DECK Deckers Outdoor $1,064.92 -14.22 (-1.32%) 52-Week Range $464.25 ▼ $1,083.71 P/E Ratio 36.36 Price Target $1,018.44 Add to Watchlist Deckers has several brands that consumers have an insatiable hunger for. Its UGG brand is known for its super comfortable and plush classic sheepskin boots, slippers, and sandals. HOKA makes athletic performance shoes for running and outdoor activities, focusing on maximum cushioning. Teva makes lifestyle sandals, shoes, and boots for outdoor activities and casual wear. AHNU makes high-performance walking shoes, and Sanuk footwear caters to the surfer lifestyle. Deckers' Stock Breakout: Daily Ascending Triangle Pattern and Strong Q4 Earnings Deckers triggered a daily ascending triangle breakout pattern. The ascending trendline formed at $788.37 on April 30, 2024, with higher lows on pullbacks. The flat-top resistance formed at $908.70. The fiscal Q4 2024 earnings release triggered a breakout, with shares surging to $994.50 and reaching new all-time highs. The daily relative strength index (RSI) surged to the oversold 80-band level. Pullback support levels are at $994.50, $956.17, $908.70, and $882.64. Deckers reported fiscal Q4 2024 EPS of $4.95, crushing analyst estimates by $1.94. Revenues surged 21.2% year-over-year (YoY) to $959.80 million, beating $892 million consensus estimates. Its direct-to-consumer (DTC) sales surged 21% to $415.2 million. Gross margin was 56.2%, compared to 50% in the year-ago period. Operating income rose to $144.3 million, up from $105.9 million. Domestic net sales rose 19.4% YoY to $647.7 million, up from $542.4 million. International net sales rose 25.2% YoY to $312 million, up from $249.1 million. Deckers' Financial Strength and Dual Channel Growth The company bought back $104.3 million shares at an average price of $875.01. Deckers closed the quarter with $1.502 billion in cash and cash equivalents, up from $981.8 million in the year-ago period, and no outstanding borrowings. Inventories fell to $474.3 million compared to $532.9 million in the year-ago period. DTC comparable net sales rose 20.5%. Wholesale net sales rose $21.4% YoY to $544.6 million, up from $448.4 million. Unlike many other retailers with growing DTC channels, Deckers had both DTC and Wholesale channels experience a revenue surge without cannibalizing the other. Brand Performance Highlights: HOKA Leads, UGG Rises, Teva and Sanuk Decline The HOKA brand generated the largest revenue, climbing 34% YoY to $544 million, which is up from $397.7 million a year ago. UGG brand net sales rose 14.9% to $361.3 million, up from $314.3 million. Teva sales fell 15.6% YoY to $53 million, pared to $62.8 million. Sanuk saw net sales fall 39.1% YoY to $6.5 million compared to $10.7 million. Other brands like Koolaburra's sales were flat, at around $6 million. Scorching Hot Year for Deckers Deckers fiscal full-year 2024 EPS rose 51% YoY to a record $29.16. Full-year revenues rose 19% YoY to a record $4.29 billion. DTC sales rose 26.5% to $1.855 billion, compared to the 25.4% increase last year at $1.467 billion. Wholesale net sales rose 12.6% YoY to $2.432 billion, up from $2.161 billion. Gross margin improved to 55.6% compared to 50.3% in the year-ago period. Deckers bought back $414.9 million of stock at a weighted average price of $580.44 per share in fiscal 2024. Deckers Adjusts FY 2025 Guidance Following Record 2024 Results Deckers issued fiscal full-year 2025 EPS guidance of $29.50 to $30.00, compared to $30.47 consensus analyst estimates. Fiscal full-year 2025 revenues are expected to be around $4.70 billion, compared to $4.71 billion consensus estimates. Deckers CEO Dave Powers commented, "Deckers achieved record results during fiscal year 2024, as we delivered revenue growth of 18% and increased earnings per share by 51%, reflecting a continued dedication to maintain exceptional levels of profitability as our brands scale. HOKA and UGG remain two of the most admired and well-positioned brands in the marketplace, each with a robust innovation product pipeline designed to win with global consumers.” Decker's analyst ratings and price targets are on MarketBeat. Before you consider Deckers Outdoor, 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 Deckers Outdoor wasn't on the list. While Deckers Outdoor currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Apex, the Largest Stegosaurus Fossil Ever Found, Heads to Auction 2024-05-29 13:00:21+00:00 - In May 2022, Jason Cooper, a commercial paleontologist, went for a walk around his property near the aptly named Colorado town of Dinosaur with a friend and found a bit of femur protruding from some rock. That femur led to a stegosaurus fossil, among the largest and most complete ever found, which has subsequently been nicknamed “Apex.” In July the Sotheby’s auction house will sell Apex at auction at an estimated value of $4 million to $6 million, making the skeleton the latest flashpoint in a long-running debate about the private fossil trade. Dinosaur fossils have fetched escalating prices at auction houses since 1997, when Sotheby’s sold “Sue” the Tyrannosaurus rex to the Field Museum in Chicago for $8.36 million. In 2020, “Stan,” another largely complete T. rex skeleton, sold at Christie’s for $31.8 million. Such pricing has raised serious concerns among academic paleontologists, said Stuart Sumida, vice president of the Society of Vertebrate Paleontology. Many of them have watched fossils that may unlock scientific mysteries get steered into the hands of wealthy private collectors rather than toward research institutions in recent decades.

What is Naked Short Selling? A Complete Overview 2024-05-29 12:30:00+00:00 - Short selling is the practice of borrowing securities and immediately selling them in the market, expecting to repurchase them later at a lower price to profit from the price difference. Traditional short selling requires the seller to borrow the securities before selling them, ensuring they can fulfill their delivery obligation at the time of settlement. Naked short selling is a more aggressive form of short selling. It involves selling borrowed securities without first arranging to borrow them, meaning the seller must deliver the shares to the buyer without possessing them. Naked short selling is the practice of selling borrowed securities without first arranging to borrow them, creating a risk of being unable to fulfill the delivery obligation at the time of settlement. Get stock market news alerts: Sign Up Sounds complicated? Let’s start with the basics of how naked short selling works. Naked short selling is a fraudulent practice where shares are sold without first being borrowed, resulting in a "failure to deliver" situation. This can artificially depress stock prices and harm investors. Naked short selling is illegal due to its potential for price manipulation and negative consequences. In traditional short selling, a trader borrows shares of a company, expecting the price to decrease. They sell the borrowed shares in the market and wait for the price to decline. At settlement, the trader buys back the shares at a lower price and returns them to the lender. However, the process of naked short selling is significantly different. Naked Short Selling: How It Works Naked short selling is prohibited in most developed markets. It is illegal because it creates an opportunity for market manipulation. In terms of execution and regulatory compliance, naked short selling significantly differs from covered short selling. Covered short selling requires traders to purchase or borrow shares before selling them to ensure timely delivery, while naked short selling involves selling shares without prior arrangements. This practice begins when a trader sells shares they do not own or have not borrowed. The trade is executed through a broker, who receives the sale proceeds but cannot deliver the shares when the standard two-day settlement period arrives. This results in a failure to deliver, or FTD. To cover the short position, the seller must purchase shares in the market. This can lead to price volatility as the seller must buy shares at a potentially higher price due to the scarcity created by the initial naked short sale. Brokers play a vital role in both covered and naked short selling. In a covered short sale, the broker facilitates the borrowing of shares from another investor, ensuring the seller has the necessary shares for delivery. In a naked short sale, however, brokers may not be aware that the seller does not have the shares available. This lack of information creates a significant risk for the broker and the clearinghouse responsible for settling trades, potentially creating market imbalances and harming investors. Unlike covered short selling, which adheres to strict regulatory requirements, naked short selling disregards those regulations. This could lead to market manipulation and negatively impact the value of companies and their investors. Is Naked Short Selling Illegal? To reiterate, naked short selling is illegal in most developed markets worldwide, including the United States. Regulatory bodies have implemented rules and regulations to curb this practice. The Securities and Exchange Commission (SEC) is essential in regulating securities markets and preventing naked short selling in the United States. The SEC's Regulation SHO, implemented in 2005, targets naked short selling by requiring broker-dealers to have reasonable grounds to believe that shares can be borrowed before accepting a short sale order. This regulation aims to ensure that shares are available for delivery to buyers when due, reducing the likelihood of naked short selling and mitigating potential market imbalances. The SEC also maintains a "threshold security list" to monitor stocks with a high number of "fails to deliver," which can indicate potential naked short selling activity. Despite the SEC's efforts, concerns remain regarding the prevalence and effectiveness of enforcement against naked short selling. Some argue that the practice continues to occur, potentially undermining market integrity and harming investors. This ongoing debate underscores the critical need for continued vigilance and rigorous enforcement of regulations to protect the integrity of financial markets and ensure a fair and transparent trading environment for all participants. What's an Example of Naked Short Selling? Imagine a trader has become aware of a recent negative report for Company X. The trader believes the stock price of Company X will decline. Instead of following the traditional short-selling practice of borrowing shares before selling them, the trader takes a riskier, illegal approach: they sell 1,000 shares of Company X without first arranging to borrow them. This is an example of naked short selling. The trader bets on the stock price dropping, allowing them to repurchase the shares at a lower price later to cover their short position and make a profit. However, when the settlement date arrives, the trader doesn't have the shares to deliver, resulting in a failure to deliver (FTD). To cover their short position, the trader must purchase the shares in the market. If the price has dropped as anticipated, they might make a profit. However, they will experience a significant loss if the price has risen. Their actions also contribute to market volatility, as the lack of available shares in the market could drive up the stock price, making it harder for other investors to buy the stock and potentially harming them. The trader in this scenario is engaging in an illegal practice that could lead to significant legal and financial repercussions. Naked short selling is considered market manipulation and fraud in most jurisdictions. The trader faces potential fines, penalties, and criminal charges from regulatory bodies like the Securities and Exchange Commission (SEC). Furthermore, the broker facilitating the transaction could face scrutiny and fines for their role in the illegal activity. Additionally, the trader's actions could have serious financial consequences, as they risk substantial losses if the stock price rises rather than falls. The potential for loss is amplified by the lack of shares available to cover the short position, potentially driving up the stock price and leading to more significant losses. Naked short selling is a risky and illegal practice with substantial legal and financial consequences. How Does Naked Short Selling Impact the Market? The market impact of naked short selling remains contentious, with opposing viewpoints emerging from economists, traders, and regulatory bodies. Some argue that it can positively contribute to market liquidity and price discovery, while others assert that it leads to market manipulation and potential financial instability. Proponents of naked short selling argue it can enhance liquidity, particularly in illiquid markets where borrowing shares is difficult or expensive. They suggest that naked short sellers might be willing to sell shares even when borrowing is challenging, increasing the overall supply and making it easier for investors to buy and sell. Additionally, they argue that naked short selling can contribute to price discovery by reflecting the actual market value of a security, incorporating information about supply and demand. However, critics contend that naked short selling is detrimental to market stability and integrity. They argue that the practice can artificially depress stock prices, potentially harming investors and companies. The lack of transparency surrounding naked short selling makes it easier for manipulators to conceal their activities and influence prices, undermining investor confidence and creating uncertainty and volatility in the market. Critics also emphasize that the practice can be used to manipulate prices for personal gain, particularly in smaller companies with limited liquidity. The ongoing debate surrounding naked short selling highlights the complex nature of its impact on financial markets. While some believe it can contribute to market efficiency and price discovery, others argue that its potential for manipulation and market instability outweighs any potential benefits. Regulatory bodies continue to monitor and address this practice to mitigate risks and ensure fair market practices. How Do Regulators Prevent Naked Short Selling? Preventing illegal naked short selling requires regulatory bodies to develop multidirectional oversight involving sophisticated surveillance, data analysis, and enforcement mechanisms. To monitor potential violations, regulators rely on a range of advanced tools and techniques. These tools include real-time surveillance systems, data mining algorithms, and algorithmic trading detection systems. They analyze trading data, including order flow, settlement records, and FTD reports, to identify unusual patterns or discrepancies that might suggest naked short selling. Additionally, regulators monitor market activity, such as price movements and trading volume, to identify potential manipulation. When suspicious activities are identified, regulators embark on a thorough investigation process. This includes gathering evidence, interviewing witnesses, and reviewing relevant documents. If evidence of naked short selling is found, regulatory bodies can take enforcement actions, including fines, penalties, and criminal charges. In addition to reactive enforcement, regulators establish and maintain regulatory frameworks designed to prevent naked short selling. These frameworks include rules and regulations that require brokers to have reasonable grounds to believe that shares can be borrowed before accepting a short sale order. Regulators also publish guidelines and best practices for industry participants, emphasizing the importance of transparency and compliance. The SEC, FINRA, and exchanges collaborate extensively to share data, coordinate investigations, and enforce regulations, creating a more comprehensive approach to addressing naked short selling. Future Outlook on Naked Short Selling The future of naked short selling remains a subject of ongoing debate as regulators struggle with its potential for market manipulation and its impact on investor confidence. While the practice is illegal in many markets, concerns regarding its prevalence and the effectiveness of current regulations persist. Regulatory bodies are constantly evaluating and refining their approaches to address this issue. This process refinement may lead to stricter enforcement measures, new rules, and increased transparency requirements for market participants. For example, regulators may implement enhanced data analytics and artificial intelligence tools to detect suspicious activity. Another option could be for regulators to require more stringent reporting from brokers and other market participants. Regulators may also develop new rules specifically to prevent abusive short-selling practices. Investors should remain vigilant and informed about changes in trading regulations and ongoing debates surrounding naked short selling. This includes monitoring regulatory announcements, keeping current on stock market news headlines and conducting thorough research on companies before investing. By staying informed and taking proactive steps, investors can more effectively navigate the volatile and complex market. Naked short selling involves selling shares of stock without first borrowing them, posing a significant threat to market integrity and investor confidence. This illegal practice, distinct from traditional short selling by its lack of pre-arranged borrowing, can lead to price manipulation, market instability, and substantial financial losses for individual investors and companies. Regulatory bodies like the SEC provide a strong foundation for market stability by actively monitoring and enforcing regulations designed to prevent naked short selling. However, the practice remains a concern, highlighting the need for continued vigilance and ongoing efforts to ensure fair and transparent market practices. Deepen Your Investment Knowledge with MarketBeat Naked short selling is an illegal practice in most markets where a seller sells shares without first borrowing them, creating a risk of not being able to deliver the shares when required. This practice can harm investors and undermine market integrity by artificially depressing stock prices and creating instability. Regulatory bodies actively monitor and enforce rules against naked short selling, but concerns remain about its prevalence and the effectiveness of enforcement. Investors should stay informed about market developments and regulatory updates to protect their investments and navigate this complex area. Investors can stay informed and protect their investments by subscribing to MarketBeat. Take advantage of access to real-time news updates, cutting-edge portfolio management capabilities, and top-of-the-line stock research tools, all tailored to support your investment goals and help you maximize profits. Subscribe today and stay ahead of the curve.

Thames Water urged to ‘get a grip’ on testing water supply after illness outbreak 2024-05-29 12:21:00+00:00 - Steve Reed, Labour’s shadow environment secretary, has urged Thames Water to “get a grip” and test treatment works “urgently” after it emerged over the weekend that the company had tested the water at only one property. Over the last two weeks, dozens of people in Beckenham, south-east London, have reported becoming unwell with diarrhoea and vomiting. The symptoms in most cases have lasted for an unusually long time – up to two weeks. They have also been severe, with multiple people hospitalised, including an eight-year-old boy. Last Wednesday, Thames Water tested the water at the property of one person who had become unwell; the results came back clear. Since then others who are unwell in Beckenham have asked for a test. Thames initially said that since its initial tests came back clear, it did not need to conduct further tests. Thames has also not tested the wider supply or the treatment facilities specifically as a result of this suspected outbreak. Syreeta Brown lives in Beckenham and her family has been unwell with diarrhoea and vomiting. She and her daughter experienced mild symptoms, but her eight-year-old son has been severely unwell for 12 days and was briefly hospitalised. Thames Water rebuffed her requests to test her water. But after being contacted by the Guardian, Thames sent a technician to take samples from her tap on Monday. “Thames Water’s response has felt very dismissive,” she said. “We’ve got two kids so of course we have dealt with diarrhoea and vomiting over the years but this was just not normal. We went to hospital after I went downstairs to discover he threw up, and was too weak to call for help. He was downstairs, he was lying in it and couldn’t call for help. Kids get bugs, this just felt different.” She first tried calling the water company, but could not get through. She then used their WhatsApp service, through which operators told her not to worry and refused to test her tap water because they had already tested one property in the area. She said: “When I had seen that they tested only one property, I thought why would you test just one property? It just seems a bit odd.” Others who live in the area have said they have found it difficult to get a response from Thames Water when they have suffered from illness and asked for a test. Reed said: “Thames Water must get a grip, be honest with the public and test treatment works in the area urgently.” Speaking about the sewage scandal more broadly, Reed said that a Labour government would put the water companies under tough special measures. “We will give the regulator new powers so law-breaking water bosses face criminal charges and block their multimillion pound bonuses until they clean up their toxic filth.” The Drinking Water Inspectorate has urged water companies to test thoroughly when asked to do so by customers, and told concerned people to contact them if their provider is not testing sufficiently. A DWI spokesperson said: “Water companies are required to adhere to the water supply (water quality) regulations 2016. These regulations include statutory responsibilities for sampling drinking water, investigating concerns identified in the water supply system and reporting to the Drinking Water Inspectorate. This includes a requirement for water companies to investigate and take steps to determine if and why water quality is or is not meeting the specified requirements. If consumers are not satisfied with the response provided by their water company, they can contact the Drinking Water Inspectorate, who will investigate the company response as a complaint.” The UK Health Security Agency confirmed it was monitoring connections between people complaining of illnesses locally, but that it had not so far found enough evidence to put out an alert. skip past newsletter promotion Sign up to Headlines UK Free newsletter Get the day’s headlines and highlights emailed direct to you every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Scientists said the reported symptoms sounded like cryptosporidium, or another waterborne disease, but that there could be other reasons for the symptoms. Paul Hunter, a medicine professor from the University of East Anglia, said: “Cryptosporidium is the top, vomiting does occur but is not usually pronounced. You rarely see blood in the diarrhoea. There is a lot of crypto around at present. Giardia is another possibility, again watery diarrhoea no blood, but the characteristic feature is bloating and flatulence. They also tend to report abdominal pain. Salmonella infections can last quite some time as well. Stool can be watery or bloody, people may have a fever and may or may not report abdominal pain.” Tim Walsh, professor of medical microbiology at the University of Oxford, added: “This will be food-/water-borne outbreak and is likely to have come from a common source. Should be easy to track down with decent retrospective epidemiology data and microbiology.” This month, unsafe drinking water led to more than 100 cases of cryptosporidium in the Brixham area of Devon. About 17,000 households and businesses were told by South West Water not to use their tap water for drinking without boiling and cooling it first after cryptosporidium was detected in the water supply. A Thames Water spokesperson confirmed there has been no specific testing of the treatment centres or local works as a result of the concerns from customers, but added that more tap tests have been done. They are still waiting for some results. They said: “We can confirm there are no water quality concerns in the central Sydenham water zone. We take all customer complaints of illness very seriously and have processes in place for investigating any contacts from customers. “Our technicians have collected samples from a number of properties as part of our process. Initial on-site testing has not indicated any aesthetic [taste, smell, look] issue with the water. Samples were also collected for laboratory analysis and of the results we have received back, show no concerns.”

Another Big Oil Deal Despite Regulatory Pushback and Market Volatility 2024-05-29 12:11:24+00:00 - Another mega oil deal Bullish predictions for $100 crude oil may not have come to fruition, but that hasn’t stopped the deal frenzy in the fossil fuel sector. The latest: The Houston-based company ConocoPhillips has agreed to acquire its smaller rival, Marathon Oil, in an all-stock deal that values the company at $22.5 billion, including debt. The news comes a day after Hess shareholders approved Chevron’s $53 billion takeover in a contentious vote. The oil majors have pulled off some of the biggest deals in the past year despite tough regulatory scrutiny from the Biden administration and volatility in the oil market. Still, the U.S. giants are sitting on record profits, giving them the firepower to acquire smaller drillers with operations in the oil-rich Permian Basin and in the Gulf of Mexico.

American Airlines Is Accused of Discrimination in Lawsuit 2024-05-29 12:08:01.175000+00:00 - Three Black men have accused American Airlines of “blatant race discrimination” over its temporary removal of them and five other men from a Jan. 5 flight from Phoenix to New York, in a federal lawsuit filed on Wednesday. The men said they were seated on a plane at Phoenix Sky Harbor International Airport when an airline employee went row by row asking them to get off the plane. As they exited, the passengers noticed that all the Black men on the flight, eight in total, appeared to have been removed. The men did not know one another, according to the lawsuit, which was filed on their behalf by the legal arm of Public Citizen, a liberal nonprofit group, and the law firm Outten & Golden. Once the men left the plane, they asked for an explanation from an airline employee, who said they had been removed because of a complaint about body odor, though nobody had accused the men of an offensive smell, according to the suit. An American representative told the men at the time that the complaint had come from a white flight attendant. The men said they had been singled out because of their race. When one described the removal from the plane as discriminatory, an American employee said, “I agree, I agree,” according to a cellphone recording that was shared with The New York Times.

ConocoPhillips to Acquire Marathon Oil in $22.5 Billion Deal 2024-05-29 11:57:58+00:00 - ConocoPhillips agreed on Wednesday to acquire its smaller rival, Marathon Oil, the latest deal in a wave of consolidation sweeping the oil industry. The burst of mergers and acquisitions has tracked a robust recovery in commodity prices, with the major players emboldened by record profits and high share prices. Conoco’s all-stock deal values Marathon at $22.5 billion, including debt. “Marathon has a high-quality asset base with adjacencies to our own assets that will lead to a straightforward integration and meaningful synergies,” Ryan Lance, Conoco’s chief executive, said in a call with analysts. Marathon’s operations are in some of the most sought-after oil fields in New Mexico, North Dakota and Texas; it also drills offshore of Equatorial Guinea. Many of those positions are near Conoco’s. Marathon traces its roots to the 19th century, and like ConocoPhillips, its predecessors were once part of John D. Rockefeller’s Standard Oil empire. In 2011, Marathon Oil spun out its refinery business, which now operates as Marathon Petroleum.

Energy Sector Dip Presents a Compelling Buying Opportunity 2024-05-29 11:45:00+00:00 - Key Points The recent dip in the energy sector may present a buying opportunity as it consolidates bullishly above its rising 200-day Simple Moving Average. Key stocks like Exxon Mobil, up 14% YTD, and Occidental Petroleum, a favorite of Warren Buffett, present unique opportunities within the sector. Exxon and the XLE are forming a bullish consolidation, and Occidental is trading significant multi-year resistance. 5 stocks we like better than Energy Select Sector SPDR Fund The energy sector has experienced notable activity this year, with a significant rise in crude oil prices, up 13.33% YTD, and firm performance among major energy stocks. Despite a recent pullback, the sector's current dynamics suggest a favorable risk-reward scenario for investors seeking exposure. The Energy Select Sector SPDR Fund NYSE: XLE, a prominent energy sector exchange-traded fund (ETF), is up 10.05% year-to-date, even after a nearly 7% decline from its 52-week high. This recent dip may present a prime buying opportunity as the sector consolidates bullishly, well above its rising 200-day Simple Moving Average (SMA). Let's explore the current state of the energy sector and its top holdings to understand why now might be an excellent time to consider going long. Get XLE alerts: Sign Up Energy Select Sector ETF: Bullish Breakout Potential Energy Select Sector SPDR Fund Today XLE Energy Select Sector SPDR Fund $90.68 -1.63 (-1.77%) 52-Week Range $76.25 ▼ $98.97 Dividend Yield 3.55% Assets Under Management $38.37 billion Add to Watchlist The XLE aims to mirror the performance of the Energy Select Sector Index, which includes companies involved in oil, gas, consumable fuels, and energy equipment and services. Despite the recent pullback, XLE remains at 10.05% year-to-date and is consolidating bullishly from a technical perspective. Earlier this year, XLE broke above a multi-year resistance level near $94, signaling a significant trend shift and higher timeframe breakout. This move was supported by rising geopolitical tensions, particularly in the Middle East. Currently, the ETF is trading well above its rising 200-day SMA. A break above the $95-$96 range could trigger a technical breakout from its consolidation phase, potentially leading to a higher leg within the uptrend. Understanding the positions of heavyweight stocks within the ETF, such as Exxon Mobil and Occidental Petroleum, a favorite of legendary investor Warren Buffett, can provide additional insights into the sector's overall momentum. Exxon Mobil: Key Influencer of XLE ETF with Strong Growth Potential Exxon Mobil Today XOM Exxon Mobil $113.63 -1.23 (-1.07%) 52-Week Range $95.77 ▼ $123.75 Dividend Yield 3.34% P/E Ratio 13.93 Price Target $135.00 Add to Watchlist Exxon Mobil NYSE: XOM, the largest holding in the XLE ETF with a 26.76% weighting, is critical in influencing the ETF's performance. XOM is the world's second-largest oil refiner and boasts a market capitalization of nearly half a trillion dollars. With a P/E ratio of 14 and a dividend yield of 3.33%, XOM is a significant player in the energy sector, trading at a value-attractive valuation. Exxon Mobil has outperformed year-to-date, with its stock up over 14%. The stock recently broke above a major resistance level at $120, indicating strong upward momentum, before pulling back and forming a bullish cup-and-handle pattern. If XOM can continue to consolidate in its bullish formation, it could easily offer an attractive long entry before pushing to new 52-week highs. Based on 18 analyst ratings, the stock has a consensus rating of moderate buy and an impressive forecasted upside of nearly 18%. Most recently, analysts at Morgan Stanley reiterated their overweight rating on the stock and their price target of $145, which predicts over 23% upside. Occidental Petroleum: Critical XLE Stock with Significant Breakout Prospects Occidental Petroleum Today OXY Occidental Petroleum $61.12 -1.09 (-1.75%) 52-Week Range $55.12 ▼ $71.18 Dividend Yield 1.44% P/E Ratio 16.70 Price Target $70.94 Add to Watchlist Occidental Petroleum NYSE: OXY is another crucial energy sector stock favored by notable investor Warren Buffett. Buffett's company, Berkshire Hathaway, holds a substantial stake in OXY, underscoring its importance. OXY has performed modestly this year, up close to 4% year-to-date. Occidental is a global oil and gas company operating in the US, the Middle East, Africa, and Colombia. Following its acquisition of Anadarko Petroleum in 2019, OXY became the US's sixth-largest oil and gas producer by market cap. The company has a $54.98 billion market capitalization, P/E of 16.94, and a dividend yield of 1.42%. OXY is the twelfth largest holding of the XLE ETF, weighing 2.52%. Technically, the stock has been consolidating for several years, with $70 as a critical resistance level. A breakout above this level could signal a higher timeframe uptrend, making it a stock to watch closely. Although the stock is over 13% away from its 52-week highs and breakout confirmation level, a move over $70 would signal a much higher timeframe and significant breakout. The Bottom Line: Prime Buying Opportunity in Bullish XLE ETF The energy sector's recent pullback offers a potentially attractive buying opportunity from a risk-reward perspective. The XLE ETF, up 10.05% year-to-date, is consolidating bullishly above its rising 200-day SMA. A break above the $95-$96 range could signal a technical breakout and further upside. Key stocks like Exxon Mobil and Occidental Petroleum are pivotal in driving the sector's overall momentum. Exxon recently broke above significant resistance before pulling back, and Occidental possesses a growth opportunity with 26.99% projected earnings growth for the entire year. These stocks provide valuable insights into the sector's potential direction. Investors should closely monitor these heavyweights as they consider gaining exposure to the energy sector amid its consolidation phase. Before you consider Energy Select Sector SPDR Fund, 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 Energy Select Sector SPDR Fund wasn't on the list. While Energy Select Sector SPDR Fund currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

The Rate Cut Party is Postponed, Not for These Stocks 2024-05-29 11:35:00+00:00 - Key Points Stagflation in the U.S. economy has made timing Federal Reserve rate cuts harder than ever. One way to beat this economic phenomenon is to focus on stocks that could deliver above-average EPS growth. Analysts land on these three companies to expect a double-digit upside as EPS growth beats the economy. 5 stocks we like better than Chipotle Mexican Grill Over the past five months, the stock market may have gotten away from itself. The Federal Reserve has kept stock market indexes at historically high levels through its interest rate cuts narrative. However, these potential rate cuts may be later than investors initially thought. There is a solid case to believe that the market may have already priced in these potential rate cuts, leaving little to no other stocks with further growth that has yet to be baked into their prices. That’s where three stocks stand out today, as Wall Street analysts believe they can still push out double-digit earnings per share (EPS) growth this year, whether rates get cut or not. Get Chipotle Mexican Grill alerts: Sign Up Companies like Micron Technology Inc. NASDAQ: MU, which has the technology stock rally to back it along with trends in artificial intelligence, fit the description today. Other stocks like Spotify Technology NYSE: SPOT, relying on their predictable cash flow models, and consumer discretionary-friendly Chipotle Mexican Grill Inc. NYSE: CMG are also places to watch. Top Stock Picks to Navigate a Tough Economic Climate Economists had to wake up to one of the most dreaded economic environments in history, with stagflation as a headline. Defined as low economic growth and high inflation, it is a sticky situation for economists to follow and even more challenging for investors to navigate. Real economic growth is negative, with the U.S. gross domestic product (GDP) growth below inflation at only 1.6% versus 3.4%. To beat these trends, investors should focus on stocks that could push out above growth while providing relatively predictable demand. Picking out the best stocks in this environment is tricky, so here’s where analyst ratings are helpful for investors. Semiconductor Surge: Why Micron Technology is a Must-Watch for Investors Rising demand for semiconductors worldwide is one of the most reliable trends investors can count on; as emerging economies help push technology demand from the semiconductor industry, analysts found a spot for Micron Technology on this list. Micron Technology Today MU Micron Technology $131.58 -1.09 (-0.82%) 52-Week Range $60.50 ▼ $133.30 Dividend Yield 0.35% Price Target $126.92 Add to Watchlist For the next 12 months, Wall Street analysts think EPS could grow by a staggering 2,306% rate. Analysts at Mizuho Financial are experiencing this potential growth, so they felt comfortable slapping a $150 price target on Micron, calling for up to 15% upside from where the stock trades today. So-called ‘smart money’ is also excited about this potential upside with other A.I. plays outside Nvidia Co. NASDAQ: NVDA, as Lazard Asset Management boosted its stake in Micron by 4.6% as of May 2024, bringing its total investment to $168 million, As the stock trades near its 52-week high, a new all-time high, investors count on bullish momentum as a technical factor helping the stock beat stagflation today. Spotify's Subscription Revenue Set to Drive Stock Higher Markets are unsure whether the Fed will cut rates this year, as the initial March 2024 timeline has been pushed to September (according to the CME’s FedWatch tool); some are losing confidence that cuts will help the market stay where it is. Spotify Technology Today SPOT Spotify Technology $307.52 -2.77 (-0.89%) 52-Week Range $129.23 ▼ $319.30 Price Target $306.42 Add to Watchlist One thing investors can count on is subscription revenue, where Spotify has a tight grip. No matter where rates go for the rest of the year, Spotify’s numbers will likely hover near their current level. Spotify's monthly average user number grew by 19% over the year, and premium subscribers grew by 14%. Reaching 239 million subscribers gives Spotify the economies of scale it needs to deliver strong results. Keeping up with inflation means raising prices by 2-4% on these subscriptions, an effect that – when multiplied by 239 million users – can bring on double-digit EPS growth. And that’s where Wall Street’s projections make sense, setting up for 41.4% growth this year alone. Chipotle Forecast: High Margins, Reliable Growth Make it an Investor's Dream Chipotle can be described as such, though it is also a sort of investor paradise. With reliable, noncyclical demand, Chipotle’s management has a tight grip on its capital cycle, allowing it to generate up to 15% in return on invested capital (ROIC) rates. Chipotle Mexican Grill Today CMG Chipotle Mexican Grill $3,072.85 -80.99 (-2.57%) 52-Week Range $1,768.64 ▼ $3,260.00 P/E Ratio 65.58 Price Target $3,147.31 Add to Watchlist Chipotle’s financials also show a 40.8% gross margin, which is nearly unheard of in the retail sector. This high margin shows pricing power and consumer preference for Chipotle over competitors, and analysts considered this when valuing the stock. Those at UBS saw fit to value Chipotle stock at $3,500, calling for up to 12% upside from its current price and reiterating that strong financials with the right mix of growth in steady demand call for a stagflation-beating stock. With above-average EPS growth and double-digit upside left in analyst valuations, these stocks kept the rate cut party going for themselves, even if no one else is invited on rumors of no cuts this year. Before you consider Chipotle Mexican Grill, 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 Chipotle Mexican Grill wasn't on the list. While Chipotle Mexican Grill currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

The 4 Horsemen of the Generative AI Revolution 2024-05-29 11:25:00+00:00 - Key Points The AI tide will lift a lot of ships, but the biggest players will have the most to gain. Established blue-chip tech has the money and means to advance and monetize the technology. These four stocks are the leading players taking share and establishing themselves as pillars of the AI revolution. 5 stocks we like better than NVIDIA Generative AI is here and in a big way. The rise of generative AI already impacts our daily lives and will only grow as the infrastructure is built, models are trained, and applications are developed. While numerous players in AI are positioned to benefit from the boom, the blue-chip mega-cap players will be the winners in the long term. These companies have the interest and inclination to advance the technology, money, networks, and scale to make it happen. More importantly, in the case of the four stocks on this list, their offerings are in demand by the industry, setting them up to gain share and retain leading positions long into the future. Get NVIDIA alerts: Sign Up NVIDIA: The New N in FAANNG NVIDIA Today NVDA NVIDIA $1,148.25 +9.24 (+0.81%) 52-Week Range $373.56 ▼ $1,154.92 Dividend Yield 0.01% P/E Ratio 67.15 Price Target $1,123.49 Add to Watchlist AI launched NVIDIA NASDAQ: NVDA into a new ball game. What was once a niche semiconductor company is now central to the evolution of technology. Its GPUs and accelerators commanded the data center market before the rise of AI and are now in such hot demand that the company is sustaining triple-digit growth on a YOY basis and outpacing expectations. The advantage for NVIDIA is two-fold: it has revolutionary semiconductor designs and leans into software. NVIDIA built the operating platform for its GPUs and accelerators from the start, giving it a lead over competitors racing to catch up. The result is NVIDIA’s full-stack approach to AI, which includes the chips to power it, the infrastructure to deliver it, and its services. The takeaway is that this niche company is now counted among the leading tech and Internet companies, including Microsoft, Google, and Amazon, and is considered a new "N" for FAANG, which refers to Facebook, Apple, Amazon, Netflix, and Google. Micron: Providing Memory for AI Micron Technology Today MU Micron Technology $131.58 -1.09 (-0.82%) 52-Week Range $60.50 ▼ $133.30 Dividend Yield 0.35% Price Target $126.92 Add to Watchlist Micron NASDAQ: MU has emerged as an AI play because of memory. AI requires a lot of memory, and the newer HBM configurations work the best. Micron’s HBM3E (the latest version) is superior. Micron’s chips provide equal or superior performance with lower power consumption and less heat, making them a top choice for data center construction. Business should be solid for years because data center growth is accelerating, and a global AI-driven upgrade cycle is in play. The company’s latest results underscore the strength of its position with end-markets normalized, and growth accelerated to nearly 60%. Growth is expected to continue at a robust double-digit pace through the end of the next fiscal year. There is some concern about patent lawsuits relating to Netlist, but they are unlikely to impact the business significantly. At least one of the underlying patents has been invalidated, and the other is under review. Microsoft: Moved to the Cloud at Just the Right Time Microsoft Today MSFT Microsoft $429.17 -1.15 (-0.27%) 52-Week Range $309.45 ▼ $433.60 Dividend Yield 0.70% P/E Ratio 37.16 Price Target $454.70 Add to Watchlist Microsoft’s NASDAQ: MSFT move into the cloud was timely as it set the business up to gain share with the rise of AI. Today, Microsoft’s Azure Cloud is growing across operating segments and taking market share due to its scale, utility for business (including AI training and inference), and embedding of AI services. The company commands 25% of the global data center market share and is growing, taking share from leader Amazon NASDAQ: AMZN. A full stack of AI services, including Copilot, was launched across the system early in 2024 and resonates with users. The launch reaccelerated segment growth to over 30%, doubling the growth at Amazon’s AWS, outpacing analysts' estimates, and led to increased guidance. The company's guidance is likely cautious due to market demand and spending plans, including doubling the growth of new data centers. Oracle: Data is at the Heart of Everything AI Oracle Today ORCL Oracle $123.74 -0.75 (-0.60%) 52-Week Range $99.26 ▼ $132.77 Dividend Yield 1.29% P/E Ratio 32.65 Price Target $130.76 Add to Watchlist AI is all about data—the Big Data generated by the Internet and mining that data for knowledge. Oracle NYSE: ORCL is central to the AI revolution because of its ubiquitous database service and lean into the cloud. Like Microsoft, Oracle effected a business transition from products to subscription services based in the cloud. Today, it is a leading database and developer solutions provider across cloud instances, including its own and Microsoft’s Azure. Highlights from the first half of calendar 2024 include ramping demand for AI services, ramping development of Gen2 data centers to meet the demand, and expanding partnerships with major AI players such as NVIDIA, Microsoft, and Amazon. Before you consider NVIDIA, 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 NVIDIA wasn't on the list. While NVIDIA currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Royal Mail owner agrees to £3.57bn takeover by Czech billionaire 2024-05-29 07:37:00+00:00 - The takeover of Royal Mail by the Czech billionaire Daniel Křetínský has edged closer after its owner agreed terms and conditions on a £3.57bn offer. In an update to the market on Wednesday, the postal service’s parent company, International Distribution Services (IDS), said it had accepted a cash offer from Křetínský’s EP Group. The deal means Křetínský, who made his fortune in energy and owns a minority stake in one of the main gas pipelines from Russia into Europe, would pay 360p a share for the 73% of the struggling postal service he does not already own. IDS shares rose by 3% to 331p when markets opened – still far short of EP’s offer, suggesting the market remains unconvinced the deal will definitely go through. Shareholders are still waiting to hear whether the British government will decide to examine the sale of the formerly state-owned service to a foreign buyer under the National Security and Investment Act, which gives ministers the power to block the sale of companies considered part of critical national infrastructure. Earlier this month, IDS bosses held a meeting with the business secretary, Kemi Badenoch, to discuss the bid and reforms to the universal service obligation (USO), which guarantees delivery to every home in the UK six days a week. A shareholder vote is scheduled for the annual general meeting on 25 September. The chancellor, Jeremy Hunt, had previously said that any bid would face a “normal” security review but the government was not opposed to EP’s ownership in principle. Labour, which is forecast to form the next government after the 4 July election, welcomed the assurances given by Křetínský and said the party would ensure they were adhered to if it won power. Křetínský’s team has proposed undertakings and contractual commitments with the government and unions, including: Retaining Royal Mail’s proposals for the USO for a first-class postal service to anywhere in the country for a fixed price six days a week for a period of at least five years. IDS has suggested second-class post could be reduced to every other weekday. Headquarters and tax residency to remain in the UK for five years. Maintaining base salaries and benefits for staff for at least two years. No changes to Royal Mail’s ownership for three years. EP also said it does not intend to make any material changes to the overall headcount or reduce the number of frontline workers, and will speak to unions about extending the current agreement of no compulsory redundancies past April 2025. Royal Mail has asked for permission to reduce second-class letter deliveries from six days a week to every other day, a change supported by EP Group. This would see a 7,000-9,000 net reduction in daily delivery routes, and up to 1,000 voluntary redundancies. Royal Mail’s largest union, the Communication Workers Union, said it would meet Křetínský next week to seek a reset in employee and industrial relations and further commitments on the future of the company. A CWU spokesperson said that the current contractual obligations and time limitations in the deal were not “good or strong enough”. “We’ll be looking for pension guarantees, we’ll be looking for a stake for the employees in the future ownership model of the business,” the CWU’s general secretary, Dave Ward, told BBC Radio 4’s Today programme on Wednesday. “I think it’s about testing Křetínský as to whether he’s got any plans for investing in the workforce and investing in growth strategies for the company, or whether his intentions are purely to asset-strip the company.” In addition to running the postal service, Royal Mail also owns about 1,300 properties, including a number of highly valuable London sites, such as those in Paddington and Farringdon. In 2019, it sold a prime London site in Nine Elms near Battersea for £101m. The formal submission of the £3.57bn bid, which had been improved from an earlier £3.1bn offer that IDS had said significantly undervalued the company, came in hours before a “put up or shut up” deadline of 5pm on Wednesday. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion The EP offer could be worth up to £3m to Royal Mail’s current and former directors, while postal staff who held on to shares they were given during the 2013 privatisation could get a windfall of up to nearly £3,400. The IDF chief executive, Michael Seidenberg, could recoup £264,000 from the 71,400 shares he owns, while the chair, Keith Williams, is in line to receive £210,000. Seidenberg was also granted up to 436,000 shares for through a long-term incentive plan that could be worth up to £1.6m under the EP offer. Křetínský, who has been nicknamed the “Czech Sphinx” because of his reluctance to speak in public, has an expanding portfolio in the UK, with stakes in West Ham football club and Sainsbury’s. One of the Czech Republic’s wealthiest citizens, Křetínský made his fortune from gas and coal, including a minority stake in Eustream, a Slovakian pipeline that carries gas from Russia to western Europe and Ukraine. In 2018, he controversially bought a stake in the French newspaper Le Monde, which was met with resistance from editors and journalists over his background in heavily polluting coal companies, and fears that he could seek influence over the paper. Křetínský told the Times last summer he would not want to tamper with the editorial independence of the paper. An EP spokesperson also added that the group planned to phase out all coal from its portfolio by 2030 and it was a big investor in renewable energy. He sold his shares in Le Monde last September to co-owner Xavier Niel, who said they would be transferred into a trust. In a statement on Wednesday morning, Křetínský said he had the utmost respect for Royal Mail’s history and traditions and understood that owning the company came with enormous responsibility. He added: “But IDS’s market is evolving quickly, and it must accelerate its transformation and investments into modernisation to keep up with the competition. “We will support the business in the next critical phase of its transformation and beyond, providing our experience and financial resilience to support the management team.”

Stock market today: Nvidia, Nasdaq reach record highs as AI rally continues 2024-05-29 05:50:00+00:00 - The tech-heavy Nasdaq Composite (^IXIC) reached a new high on Tuesday, breaching 17,000 for the first time as AI darling Nvidia (NVDA) continued its post-earnings tear to also reach a record of $1,140 a share. The benchmark S&P 500 (^GSPC) finished the day just above the flatline, while the Dow Jones Industrial Average (^DJI) drifted about 0.6% lower, shedding more than 200 points. The major gauges are regrouping after a volatile week as traders return from the Memorial Day break. Stocks have been buffeted back and forth by two impulses: fading optimism for rate cuts on one hand, and high hopes for AI on the other. Investors are now firmly back on inflation watch, counting down to the release of the Federal Reserve's preferred PCE gauge on Friday. Fed officials have sent out a drumbeat of warnings that data must show real cooling in inflation to trigger a policy shift, with Neel Kashkari the latest to join them. Read more: How does the labor market affect inflation? In other individual movers, GameStop (GME) stock soared nearly 25% on Tuesday. The games retailer on Friday said it had brought in not far off $1 billion from a share sale during the meme rally earlier in May. Meanwhile, Apple (AAPL) rose following data showing iPhone sales in China jumped over 50% in April as retail partners cut prices.

Nvidia stock leaps to latest record — thanks to Elon Musk 2024-05-29 05:11:00+00:00 - Nvidia (NVDA) stock traded above $1,100 for the first time ever on Tuesday, a move that allowed shares to surpasses their previous record closing high. Shares finished the day above $1,140. The milestone moment comes after Elon Musk’s artificial intelligence startup xAI said Sunday that it raised $6 billion in a Series B funding round, sending Nvidia stock up as much as 8% the following trading day. The flurry of AI investment has continued to boost optimism over Nvidia's growth rate as the chipmaker continues its record-setting stock rally. Last week, Nvidia reported first quarter results that more than impressed Wall Street with adjusted earnings surging 461% year over year while revenue grew by 262%. According to the Information, Musk plans to use Nvidia chips for a new "supercomputer" that will be used to power xAI's chatbot named Grok. "xAI will continue on this steep trajectory of progress over the coming months, with multiple exciting technology updates and products soon to be announced," Sunday's blog post read. In addition to stellar earnings, Nvidia also announced a 10-for-1 stock split and an increase to its cash dividend — a move that's been echoed by other tech giants in recent quarters. In an exclusive interview with Yahoo Finance following the company's earnings report, Nvidia CEO Jensen Huang shrugged off concerns about a future demand slowdown after the executive said the company's Q1 data center growth continued to be fueled "by strong and accelerating demand for generative AI training." "People want to deploy these data centers right now," Huang said. "They want to put our [graphics processing units] to work right now and start making money and start saving money. And so that demand is just so strong." The company reported record quarterly Data Center revenue of $22.6 billion, up 427% from the year-ago period. In total, Data Center revenue accounted for 86% of the company's total revenue for the quarter. Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com. For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here Read the latest financial and business news from Yahoo Finance

FED Warns Against Rising Delinquency Rates, Calls It A "Leading Indicator That Things Are About To Get Worse" 2024-05-29 04:30:00+00:00 - FED Warns Against Rising Delinquency Rates, Calls It A "Leading Indicator That Things Are About To Get Worse" Austan Goolsbee, President of the Chicago Federal Reserve Bank, highlighted that consumer delinquencies are among the most worrisome economic indicators currently being monitored. His concerns now appear prescient as new data reveal a significant uptick in delinquency rates in the first quarter of 2024. "If the delinquency rate of consumer loans starts rising, that is often a leading indicator that things are about to get worse," Goolsbee stated. Recent figures from the Federal Reserve published last week confirm these fears, showing that aggregate delinquency rates have increased, "with 3.2% of outstanding debt in some stage of delinquency as of the end of March." Don't Miss: This marks a notable rise in financial distress among consumers. The data indicates that the transition rates into delinquency have surged across all debt categories. About 8.9% of credit card balances and 7.9% of auto loans have become delinquent annually. Although the transition rate for mortgages increased by 0.3 percentage points, it remains low by historical standards. "In the first quarter of 2024, credit card and auto loan transition rates into serious delinquency continued to rise across all age groups," said Joelle Scally, Regional Economic Principal within the Household and Public Policy Research Division at the New York Fed. "An increasing number of borrowers missed credit card payments, revealing worsening financial distress among some households." Trending: Warren Buffett flipped his neighbor's $67,000 life savings into a $50 million fortune — How much is that worth today? Despite these concerning trends, the Federal Reserve has not identified a single cause for the rising delinquency rates. Instead, it suggests that several factors could be at play. Amid the pandemic, Americans increased both savings and spending, potentially continuing their high expenditure rates without the cushion of substantial savings, thus relying more on debt. Additionally, there has been an uptick in lending to borrowers with lower credit scores in recent years, which might also contribute to the increasing delinquency rates. As the situation develops, policymakers and financial institutions must closely monitor these indicators to address potential economic fallout. Rising delinquency rates could signal more significant economic issues, necessitating a cautious and proactive approach to prevent further deterioration. Story continues Keep Reading: Elon Musk and Jeff Bezos are bullish on one city that could dethrone New York and become the new financial capital of the US. Investing in its booming real estate market has never been more accessible . Amid the ongoing EV revolution, previously overlooked low-income communities now harbor a huge investment opportunity at just $500. "ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now! Get the latest stock analysis from Benzinga? This article FED Warns Against Rising Delinquency Rates, Calls It A "Leading Indicator That Things Are About To Get Worse" originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Signal: Buy the Dip on DraftKings Stock 2024-05-29 02:05:00+00:00 - The shares of sports betting company DraftKings Inc (NASDAQ:DKNG) are crumbling today, last seen 11.6% lower to trade at $36.09, after the Illinois Senate passed a 2025 budget that will raise taxes on gross gaming revenue raise by more than 140%. Today's plunge could be short lived, if past is precedent, as DKNG recent pulled back to a historically bullish trendline. The stock is now below its 126-day moving average after spending a significant period of time above it, defined for this study as having traded north of this trendline 80% of the time in the past two months, and in eight of the past 10 trading days. Per data from Schaeffer's Senior Quantitative Analyst Rocky White, four similar signals occurred during the past three years, with DKNG averaging a 12.9% one-month gain. From its current perch, a similar move would put the shares back above the $40 mark and fill their 12.2% monthly drawdown. And despite today's sharp drop, DraftKings stock remains up 54% over the last 12 months and is holding its year-to-date breakeven level. DKNG Chart May 282024 Now looks like a good time to weigh in on DKNG’s next move with options. Its Schaeffer's Volatility Index (SVI) of 40% stands in the low 6th percentile of annual readings, implying options players are pricing in relatively low volatility expectations at the moment.

Stocks making the biggest moves after hours: American Airlines, Robinhood, Box and more 2024-05-28 22:13:00+00:00 - Check out the companies making headlines in after-hours trading: Robinhood — The retail brokerage added 4.5% after the company announced a $1 billion share repurchase program. Robinhood management expects to execute the program over a two- to three-year period starting in the third quarter of 2024, a press release said. Cava Group — The stock dropped 5% in after-hours trading despite the restaurant chain posting earnings and revenue for the first quarter that significantly exceeded expectations. Cava reported earnings of 12 cents per share on revenue of $259 million, while analysts polled by LSEG anticipated earnings of 4 cents per share on $246 million in revenue. Cava shares had hit a 52-week high earlier Tuesday. Box — The cloud storage company added 1.2% on the back of better-than-expected earnings and revenue. Box reported adjusted earnings of 39 cents per share, while analysts polled by LSEG expected earnings of 36 cents per share. Revenue came out at $264.7 million, surpassing expectations of $262 million for the quarterly period. Microchip Technology — Microchip shares dipped 2.8% after the company announced it aims to raise $1.1 billion worth of convertible senior notes due 2030 in a private offering, subject to market conditions and other factors. American Airlines — The air carrier slid more than 6%. American Airlines slashed its outlook for sales in the second quarter. It is also expecting adjusted earnings of $1 to $1.15 per share for the period, compared to previous guidance of $1.15 to $1.45 per share, per a regulatory filing . The updated outlook for adjusted earnings is also below FactSet's consensus expectations for $1.30 per share. Shares of Delta Air Lines and United each slid about 2% in sympathy. — CNBC's Darla Mercado contributed reporting.

Homeowners face soaring insurance costs as violent storms wreak havoc 2024-05-28 22:08:00+00:00 - More severe weather coming for Texas after strong storms over Memorial Day weekend Insurance companies are hiking the cost of homeowners coverage to offset the growing risk posed by powerful storms of the kind that ripped across five states over the Memorial Day weekend. The storms left a trail of destruction in Arkansas, Kentucky, Oklahoma, Texas and parts of Virginia, leveling homes and killing at least 23 people. The increasing frequency and severity of extreme weather — which scientists link to climate change — means bigger payouts by insurers, leading to higher premiums for millions of Americans. "It goes without saying," Oklahoma Department of Insurance Commissioner Glen Mulready told CBS MoneyWatch. "Everyone is taking a hit with these storms, and that has to lead to increased premiums to cover those losses. It's unfortunate but it's true." In Oklahoma, the price of homeowners coverage surged 42% between 2018 and 2023, according to an analysis from S&P Global. In 2024, the state has already experienced more than 90 tornadoes — more than double the number of twisters Oklahoma would ordinarily see at this point in the year. Making matters worse, Oklahomans have endured two Category 4 hurricanes this year, Mulready noted. Homeowners insurance rates in Arkansas and Texas soared 32.5% and 60%, respectively, between 2018 and 2023, according to S&P Global. Insurers have also raised homeowner premiums in states including Illinois, North Carolina, Oregon and Utah in recent years, in part because of extreme weather, said Scott Holeman, spokesman for the Insurance Information Institute. Severe weather isn't the only reason homeowners' policies are getting pricier. "In the past year, we've seen losses for insurance companies pile up because of storms, natural disasters, inflation and supply-chain issues," Holeman told CBS MoneyWatch. "The result is many insurers are still in the red despite sharp increases to premiums. In four of the last five years, homeowners' coverage has been unprofitable for insurers." Researchers at National Oceanic and Atmospheric Administration say extreme weather events are increasing both in frequency and severity. In 2023, the U.S. experienced a record 23 billion-dollar weather and climate disasters, according to scientists. Researchers link such events, including catastrophic flooding, heat waves, severe droughts and massive wildfires, to global warming. The growing financial losses tied to extreme weather events has led insurers including Allstate and State Farm to stop renewing home policies in parts of California and Florida. AAA last year also decided not to renew some policies in Florida, a state that has seen an increase in powerful storms and coastal flooding. Meanwhile, some insurers that have continued to offer coverage in states vulnerable to extreme weather are raising their rates. Travelers Insurance, for example, this month got the OK from California regulators this month to raise homeowners' rates an average 15.3%. Nationally, the average homeowners insurance premium jumped from $1,081 in 2018 to $1,522 last year for people in a single-family property with a 30-year home loan, according to mortgage buyer Freddie Mac. ] Property damage from a natural disaster "is one of the largest financial risks" a homeowner can experience, according to a May study by the Federal Reserve. Almost 2 in 10 U.S. adults reported being financially impacted by a natural disaster or severe weather event in the past 12 months, the study found.

American Airlines cuts outlook, says chief commercial officer is leaving 2024-05-28 21:52:00+00:00 - American Airlines passenger jets are lined up at the gates at Ronald Reagan Washington National Airport in Arlington, Virginia, on Feb. 10, 2024. American Airlines slashed its sales outlook on Tuesday. The company has also let go of its chief commercial officer, Vasu Raja. He will leave his position next month. American Airlines said it expects unit revenues to fall as much as 6% in the second quarter from a year earlier, down from a previous forecast of a decline of no more than 3%. The carrier also trimmed its adjusted earnings estimate for the period to a projected range of $1 to $1.15 a share, down from a prior range of $1.15 to $1.45 a share. The airline has trailed rivals Delta and United Airlines in recent months in financial performance. United Airlines later on Tuesday reiterated its expectation to earn an adjusted $3.75 to $4.25 per share in the second quarter. Executives from both carriers will present at a Bernstein conference Wednesday morning. American Airlines CEO Robert Isom plans to discuss the carrier's plan to modify its ticket distribution strategy in favor of driving bookings to its own platforms instead of third-party channels and agencies. When asked during an April earnings call whether American Airlines had been receiving pushback from corporate customers while rivals reported strong business travel growth, Isom admitted that the carrier could have to make changes to the system. "Look, we've got some fine-tuning to do," Isom said during the April call. "No doubt the objective here is … to hang on to all the cost savings and then also to make sure that we maximize revenue production. As we take a look at the first quarter, there's quite likely some benefit that our competitors received because of some of … the changes that we've made." Raja, just more than two years into his role as commercial head, had been on leave recently, and a spokeswoman for the carrier said last week that he was not leaving the company. That changed after internal discussions in the past few days, according to a person familiar with the matter. He previously served as chief revenue officer and headed American Airlines' network and alliances departments. Raja did not immediately respond to CNBC's request for comment.

Your 401(k) match is billed as "free money," but high-income workers may be getting an unfair share 2024-05-28 21:31:00+00:00 - Why investment and retirement planning are more challenging for women — and what they can do about Why investment and retirement planning are more challenging for women — and what they can do about 03:15 The 401(k) is now the most popular type of retirement plan, with many employers providing a company match when workers sock away money in their accounts. But these matches — often shorthanded as "free money" from your company— may exacerbate inequality in retirement, new research finds. About 44% of employer matches are directed toward the top 20% of earners, according to a May study from researchers at Vanguard, Yale University and the Massachusetts Institute of Technology. By contrast, the bottom 20% of workers receive just 6% of their employers' matching contributions, the analysis found. There's a lot of money on the line, as corporations provided about $212 billion in matching contributions in 2021, or almost 60 cents for every dollar saved by workers, the study noted. But the bulk of those employer dollars are more likely to go to higher-income workers, even though businesses typically dangle their 401(k) matches as a way to convince all workers, regardless of income, to save for retirement. "Employer contributions are a ripe target for innovation," the authors wrote in the report. "They disproportionately accrue to those with higher incomes, White workers, those with more access to liquid wealth and those with richer parents." The findings come amid increasing scrutiny of the pitfalls of 401(k)s, which now serve as the predominant retirement vehicle for American workers. About half of all private employees participate in a so-called defined contribution plan, which include 401(k)s and 403(b)s, compared with about 15% who have access to traditional pensions. But even as they've supplanted traditional pensions, 401(k)s have left behind the bulk of America's workers, according to Teresa Ghilarducci, a labor economist and a professor at The New School for Social Research in New York. First, many workers lack access to them, and secondly, those who participate in 401(k)s are largely on their own to figure out how to invest and manage them, creating what Ghilarducci calls a "flimsy" do-it-yourself system. After more than four decades of a 401(k) system, almost 3 in 10 older workers are nearing retirement without a penny saved. Two-thirds of younger baby boomers don't have enough saved for their golden years. Who saves — and why To be sure, it's not entirely surprising that higher-income workers get a larger share of a company's matching contributions. For instance, take two workers who direct 10% of their pay into their 401(k)s, with the first earning $100,000 and the second earning $50,000. With a typical percentage match, where an employer matches 50% of an employee's contributions up to 6% of their pay, the worker earning $100,000 would get a $3,000 match; for the employee earning $50,000, the match would be $1,500. But the analysis found that higher-income workers are actually getting a bigger share of employer contributions than their share of income — indicating that top-earning employees are enjoying outsized benefits when compared with lower-earning coworkers. In fact, the top 20% of earners get an 11% bigger share of employer contributions than income, while those in the bottom 20% get a 29% smaller share of matching dollars than income, the study found. That's partly because some wealthier workers are more likely to max out their savings, which helps them get the most in "free money" from their employers. But these people are also likely to have other advantages, like family wealth or a college degree, the study noted. At the same time, the analysis found that there's not a lot of evidence that company matches actually convince workers to save more. A majority of low-income workers don't participate in their 401(k) plans despite their company match, while most high-income workers are saving above the company's match cap, even though they may not benefit from any additional "free money," the study found. In other words, 401(k)s are giving more of a leg up to wealthier people who can afford to save more and max out their company match, while putting people who can't afford to save as much at a disadvantage, a previous analysis from the MIT researchers found. The end result is that wealth inequality is likely to persist, they concluded. There is one type of 401(k) match that offers a fairer distribution of company dollars, the recent analysis found. This type of program is called a dollar cap match, which is only used in 4% of 401(k) plans. These programs cap employer contributions at a dollar amount, such as tapping out a match at $6,000 a year, regardless of how much an employee earns or contributes. And employers could add other attributes to help lower-income workers, such as immediate vesting, auto-enrollment and a higher default savings rate, the researchers noted.