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Jamie Dimon says he still sees a recession on the horizon 2024-08-07 20:06:00+00:00 - JPMorgan Chase CEO Jamie Dimon said Wednesday he still believes that the odds of a "soft landing" for the U.S. economy are around 35% to 40%, making recession the most likely scenario in his mind. When CNBC's Leslie Picker asked Dimon if he had changed his view from February that markets were too optimistic on recession risks, he said the odds were "about the same" as his earlier call. "There's a lot of uncertainty out there," Dimon said. "I've always pointed to geopolitics, housing, the deficits, the spending, the quantitative tightening, the elections, all these things cause some consternation in markets." Dimon, leader of the biggest U.S. bank by assets and one of the most respected voices on Wall Street, has warned of an economic "hurricane" since 2022. But the economy has held up better than he expected, and Dimon said Wednesday that while credit-card borrower defaults are rising, America is not in a recession right now. Dimon added he is "a little bit of a skeptic" that the Federal Reserve can bring inflation down to its 2% target because of future spending on the green economy and military. "There's always a large range of outcomes," Dimon said. "I'm fully optimistic that if we have a mild recession, even a harder one, we would be okay. Of course, I'm very sympathetic to people who lose their jobs. You don't want a hard landing."

Yum Brands Sees Slower Sales Growth, Analyst Revises Forecast - Domino's Pizza (NYSE:DPZ), McDonald's (NYSE:MCD) 2024-08-07 19:56:00+00:00 - Yum! Brands, Inc. YUM released earnings results for its second quarter Tuesday before the opening bell. Analysts covering the Louisville, Kentucky-based company provided their takes: Goldman Sachs analyst Christine Cho maintained the Neutral rating on Yum! Brands with a price forecast of $150. analyst Christine Cho maintained the Neutral rating on Yum! Brands with a price forecast of $150. Piper Sandler analyst Brian Mullan reiterated the Neutral rating on Yum Brands with a price forecast of $140. analyst Brian Mullan reiterated the Neutral rating on Yum Brands with a price forecast of $140. BMO Capital Markets analyst Andrew Strelzik has a Market Perform rating on Yum! Brands, with a price forecast of $135. Also Read: US Stocks Set To Extend Gains Despite Mixed Earnings, VIX Dips Back Toward Pre-Sell-Off Levels: Analyst Says Pullback Is A ‘Growth Scare’ And Not ‘Calamity’ Goldman Sachs: Cho revised the EBITDA forecasts for FY24, FY25, and FY26 to $2.73 billion, $2.97 billion, and $3.26 billion, respectively, down from $2.73 billion, $2.99 billion, and $3.3 billion. This adjustment reflects slightly weaker same-store sales growth and revenue trends, which are somewhat mitigated by reduced general and administrative expenses. Piper Sandler: Mullan writes that while the top line in the year’s second half will be softer than management was forecasting at the beginning of the year, same-store sales will sequentially improve as the calendar moves from the second quarter to the third quarter and fourth quarter. On top of that, the analyst notes that adjusted G&A dollars were down ~9 to 10% in the quarter, and management shared that it expects this line to be down on an FY2024 basis. As the quarter concludes, analysts anticipate minimal changes to consensus-adjusted EPS estimates for 2024 through 2026. Any potential reductions in sales are expected to be roughly balanced by lower G&A expenses. Mullan raised the FY25 revenue estimate to $8.078 billion from $7.952 billion. BMO Capital Markets: Yum Brands owns three major quick-service chains: Taco Bell, Pizza Hut and KFC. The company appears well-positioned to execute against its long-term growth algorithm over time, and its portfolio should be well-suited for a softer consumer spending environment. The company continues to leverage G&A expenses to bolster its operating profit outlook. While optimistic about long-term fundamentals, the analyst currently prefers global fast-food peers such as Domino’s Pizza Inc DPZ, McDonald’s Corporation MCD, and Restaurant Brands International Inc. QSR. Strelzik expects the company to report FY24 revenues of $7.600 billion, and FY25 revenues of $8.093 billion. Price Action: YUM shares are trading lower by 0.38% to $136.33 at last check Wednesday. Read Next: Image: Unsplash

Why 'wardrobing' retail fraud soars in the summer 2024-08-07 19:47:00+00:00 - A particular type of retail fraud soars during the summer season. “Wardrobing,” in which a shopper buys an expensive item, wears it with the tags on, and then returns the product for a refund, picks up as shoppers bolster their closets for summer vacations, according to returns management software company Optoro. “During the summer and cruise season, from July to September, we see wardrobing and overall return rates spike by two-to-three times, with swimwear alone making up between 5% and 15% of returns,” said Amena Ali, CEO of Optoro. “This highlights the fine line between habitual returners and fraudsters.” Forty percent of 18-to-29-year-olds wardrobe, according to Optoro data. In a November 2023 Optoro returns survey, 30% of shoppers admitted to buying an item for a specific event, only to return it after the occasion ended. The challenge for retailers is handling the items when they get them back. “For seasonal items like cruisewear and swimwear, quick, yet thorough, inspection and restocking are imperative to retain as much value as possible before the season ends,” Ali said. “Time sensitivity is crucial in this fight — ideally, you catch fraud in the moment, or better yet, before it happens.” Ali warned if products linger in the return process, the delay can lead to significant markdowns or the need to send items to secondary retail channels such as stores like TJ Maxx, discounters, or liquidators. Ali told CNBC that when a wardrobed item returns to a store or warehouse, the best course of action depends on its value and condition. “A $10 swim coverup returned in poor condition might not be worth the cost to clean or repair, and would likely instead be routed through recommerce, donations or recycling channels,” said Ali. “It’s imperative that items clearly worn for a summer vacation and returned don’t slip through the cracks to the next customer — protecting brand perception and customer loyalty is paramount.” Scot Case, executive director of the Center for Retail Sustainability at the National Retail Federation, said wardrobing can drive up costs and waste for retailers if the product can no longer be resold. So retailers are taking action. “Some retailers are addressing the issue by reducing the amount of time consumers have to return items, by eliminating free returns or by requiring consumers to return items in-store where an employee can examine the item before a consumer receives a refund,” said Case. Companies like Best Buy, Gap and American Eagle Outfitters use Optoro’s reverse logistics artificial intelligence software to swiftly manage their returns, identify fraud and quickly restock products on store shelves to avoid discounting. “Time is literally money,” Ali said. “The more quickly you can turn the product, the less likely you will need to discount it. Having a smart disposition system can recover costs and maximize profitability. Steven Lamar, CEO of the American Apparel and Footwear Association told CNBC that returns, whether due to wardrobing or other reasons, have become a key focus for retailers and brands, especially in the era of e-commerce. “Supply chain technology, powered by AI, is increasingly being deployed so that consumers can find and enjoy the fashion they want at the right price, the right quality, and the right time,” Lamar said. “As companies build and integrate take back programs to repair and resell used items, returns take on a new role, fueling a new circular market.” According to Optoro, 30% of the cost associated with a return is transportation. Strategies such as third-party drop-off locations and box-less, label-less returns are being used to cut down these costs. “AI and software can reduce the number of touches on a returned product by 50%,” Ali said. Ali said using AI in an end-to-end digitized return system can also help a retailer identify a trusted shopper and get the like-new goods identified and restocked at full price. Optoro data shows approximately 95% of the goods that cannot return to resale go to a secondary channel. Five percent of products head to a landfill or for donation. “We see a wide range of numbers in terms of recovery, between improvement of 5% to 45% in certain categories, depending on the brand, but this is significant money when talking to enterprise retailers,” said Ali. “A global shoe manufacturer that was sending a large portion of returned inventory to destroy/recycle, was able to increase their re-commerce to the secondary channels with an improved overall recovery for that segment by 45%.” Optoro customers’ top three categories returned were kitchen and dining, men’s shoes and women’s clothing. Return rates vary both in category and by brand or retailer. Some clients see as high as 40% return rates. Clothing leads the return category at a 25% rate, followed by bags, accessories and shoes at 18%, miscellaneous accessories at 13% and consumer electronics at 12%, according to Statista. The average value of a returned item for Optoro’s customers is $85. The highest item value reported as returned in the survey was $200.

STERIS Q1 Earnings Beat Estimates, Operating Margin Falls - Steris (NYSE:STE) 2024-08-07 19:46:00+00:00 - STERIS plc STE reported first-quarter fiscal 2025 adjusted earnings per share of $2.03, up 10.3% from the year-ago quarter's figure. The figure surpassed the Zacks Consensus Estimate by 2 cents. The adjustment excludes the impacts of certain non-recurring charges, such as the amortization of acquired intangible assets and acquisition and integration-related charges, among others. The company's GAAP EPS was $1.41, up 7.6% from the year-ago level of $1.31. Revenues in Detail Revenues of $1.28 billion from continuing operations increased 8.5% year over year. The figure outpaced the Zacks Consensus Estimate by 1.5%. Organic revenues at the constant exchange rate or CER rose 6% year over year. Quarter in Detail The company operates through three segments — Healthcare, Applied Sterilization Technologies ("AST"), and Life Sciences. Revenues at Healthcare rose 10% year over year to $901.2 million (up 5% on a CER organic basis). While there was a 23% improvement in consumable revenues and a 14% increase in service revenues, these were partially offset by a 10% decline in capital equipment revenues. Our model expected Healthcare segment revenues to improve 6.9% in the fiscal first quarter. Revenues at AST improved 7% to $249.8 million (up 8% on a CER organic basis). This performance reflected 7% growth in service revenues and a 24% increase in capital equipment revenues. Our model anticipated a 6.4% improvement in the segment's revenues in the reported quarter. Revenues in the Life Sciences segment decreased 2% to $128.5 million (up 4% year over year on a CER organic basis). The decline in revenues was due to the divestiture of the CECS business. This performance reflected 13% growth in consumable revenues, offset by a 15% decline in capital equipment revenues and a 17% decline in service revenues. Our model projected a year-over-year improvement of 5.8% in the segment's revenues. Margins The gross profit in the reported quarter was $572.4 million, up 8.2% from the prior-year quarter. The gross margin expanded a marginal 4 basis points (bps) year over year to 44.7% due to an 8% rise in the cost of revenues. STERIS witnessed a 9.5% year-over-year rise in selling, general and administrative expenses. The figure amounted to $335.6 million. Research and development expenses rose 3.6% to $25.6 million. Adjusted operating expenses of $361.2 million increased 9% year over year. The adjusted operating margin contracted 20 bps to 16.5%. Financial Details STERIS exited the first quarter of fiscal 2025 with cash and cash equivalents of $198.3 million compared with $207 million at the end of fiscal 2024. STERIS plc Price, Consensus and EPS Surprise STERIS plc price-consensus-eps-surprise-chart | STERIS plc Quote Cumulative net cash flow from operating activities at the end of the fiscal first quarter was $303.7 million compared with $123.8 million in the year-ago period. Further, the company has a five-year annualized dividend growth rate of 8.44%. Guidance STERIS reiterated its fiscal 2025 projection. The company expects revenues to increase 6.5-7.5%. Organic revenues are expected to be 5-7% at CER. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $5.48 billion, implying 7.3% growth from fiscal 2024. Adjusted EPS is expected to be in the range of $9.05-$9.25. The Zacks Consensus Estimate for the metric is pegged at $9.16. Our Take STERIS exited the first quarter of fiscal 2025 with better-than-expected results, wherein both adjusted earnings and revenues beat their respective consensus estimate. The ongoing momentum of the Healthcare segment is attributed to a solid procedure volume growth in the United States, along with favorable pricing. The addition of the surgical instrumentation assets purchased from BD was a positive factor behind the strong growth of Healthcare operating income. Further, the AST segment reflected an improvement in capital equipment revenues and service revenues in the quarter under review. The expansion of the gross margin bodes well for the stock. Meanwhile, performance in Life Sciences was dented due to the divestiture of the CECS business. The contraction of the operating margin is concerning. Zacks Rank & Key Picks STERIS currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are Intuitive Surgical, Abbott Laboratories, Inc. and Quest Diagnostics. Intuitive Surgical reported a second-quarter 2024 adjusted EPS of $1.78, which beat the Zacks Consensus Estimate by 16.3%. Revenues of $2.01 billion topped the consensus estimate by 2%. ISRG currently sports a Zacks Rank #1 (Strong Buy). Intuitive Surgical has a long-term earnings growth rate of 16.1% for 2024 compared with the industry's 14.1%. The company's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.97%. Abbott, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2024 earnings of $1.14 per share, which surpassed the Zacks Consensus Estimate by 3.6%. Revenues of $10.38 billion topped the Zacks Consensus Estimate by 0.3%. ABT has an earnings growth rate of 10.1% for 2025 compared with the S&P 500's 9.3%. The company beat on earnings in each of the trailing four quarters, the average surprise being 2.34%. Quest Diagnostics, carrying a Zacks Rank #2 at present, reported a second-quarter adjusted EPS of $2.35, which surpassed the Zacks Consensus Estimate by 1.7%. Revenues of $2.40 billion outpaced the Zacks Consensus Estimate by 0.5%. DGX has a historical five-year earnings growth rate of 7.4% compared with the industry's 4.2%. The company's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.31%. To read this article on Zacks.com click here.

Hyundai and Kia car thefts fall sharply after software upgrade, study finds 2024-08-07 19:36:00+00:00 - Free clinics will be held to give Kia and Huyndai owners more protection for their cars Free clinics will be held to give Kia and Huyndai owners more protection for their cars 01:56 Technology is helping foil car thieves making life miserable for owners of Hyundai and Kia vehicles. The rate at which the Korean automakers' cars are stolen has fallen by more than half since the companies upgraded their anti-theft software, according to new research from the Highway Loss Data Institute (HLDI). Hyundai and Kia thefts have soared in recent years after criminals discovered that certain car models lacked engine immobilizers — technology that has long been standard in other vehicles. A social media trend, dubbed the "Kia Challenge," has appeared to compound the automakers' problems in recent years, with people posting videos showing how to steal Hyundai and Kia cars. At its height, the Kia Challenge was linked to at least 14 reported crashes and eight fatalities, according to figures from the National Highway Traffic Safety Administration. About 9 million vehicles have been impacted by the rash of thefts, including Hyundai Elantras and Sonatas as well as Kia Fortes and Souls. Hyundai and Kia earlier this year agreed to pay $200 million to settle a class-action lawsuit filed by drivers who had their vehicles stolen. "Extremely effective" Hyundai and Kia upgraded their cars' anti-theft tech in early 2023. Vehicles equipped with the enhanced software will only start if the owner's key, or an identical duplicate, is in the ignition. HLDI, which is affiliated with the Insurance Institute for Highway Safety, conducts research on auto insurance-related losses. "The companies' solution is extremely effective," Matt Moore, senior vice president of HLDI, said in a statement. "If you own a Hyundai or Kia vehicle without an electronic immobilizer, you should call your local dealer about getting the software upgrade today." Roughly two dozen 2011 through 2022 Hyundai and Kia models are eligible for the security software upgrade. Vehicles that received it as of December 2023 — a total of 30% of the eligible Hyundais and 28% of the eligible Kias in HLDI's database — had theft claim frequencies that were 53% lower than vehicles that didn't get the upgrade, the research found. The HLDI study ended in December, which means it doesn't capture any possible thefts that could have occurred so far in 2024. The automakers have said that about 60% of eligible vehicles had been upgraded as of July. Despite the fixes, theft claims for the affected Hyundai and Kia models continue to exceed industry norms, including for vehicles equipped with the upgraded software, according to HLDI. One reason could be that the software-based immobilizer only activates if the driver remembers to lock the vehicle with a fob, while many people are in the habit of using the switch on the door handle.

Addicted to the Olympics? A turnaround for the Peacock streaming service probably contributed 2024-08-07 19:16:49+00:00 - Four boxes with live Olympics action filled Peacock’s screen during its “Gold Zone” show one afternoon this week — one showing women hammer toss competitors, another with long jumpers going aloft, a third with racers leaping hurdles and the last showing the minutes counting down in the U.S.-Germany women’s soccer match. Occasionally producers punch up a concentrated look at one event. This was a gripping display of the breadth of Olympic sports, and it was hard not to get hooked. Millions of Americans have shared similar experiences during the past week and half, powering a much-needed rebound for Peacock, the streaming service that was often the target of ridicule during Olympics in Tokyo in 2021 and Beijing in 2022. “It’s been a real turnaround,” said Mark Lazarus, chairman of the NBC Universal Media Group. With several days of competition remaining, NBC has surpassed 17 billion minutes streamed for the Paris games — the vast majority on Peacock — exceeding the streaming minutes for all of the previous Olympics combined. Rather than detract from it, the chief executive believes Peacock has helped NBC’s television outlets to a ratings performance in Paris that has network honchos giddy with joy. New thinking, new results Lazarus ordered a teardown of Peacock’s Olympics operation, memorably conceding in June that consumers had reacted with “the big digital middle finger” to their past work. Peacock was hard to navigate and plagued with glitches. NBC also admits to failing to deliver on promises that Peacock would be the comprehensive Olympics experience, balking at showing some live events for fear it would cannibalize TV audiences — a traditional line of thinking that Paris has proven outmoded. Led by a new executive team that included Matt Strauss, chairman of NBC’s direct to consumer unit, and Peacock President Kelly Campbell, they studied other sports and streaming outfits for new ideas. “This in many ways is not their first bite of the apple, but they had a number of years to learn,” said Craig Moffett, analyst for the technology and media research firm MoffettNathanson. It’s clear they learned several smart lessons, he said. The whip-around “Gold Zone” product, which has proven enormously popular in Paris, is a knockoff of DirecTV’s NFL “Red Zone,” including some of the same personnel. It matches the original’s high-adrenaline pace, taking viewers to noteworthy events — particularly when medals are decided. Peacock offers several multi-view screens that show a handful of live events happening at the same time. While “Gold Zone” is curated by producers, on multi-view consumers can click on one of the boxes to concentrate on one event in particular. In effect, viewers can produce their own show. Most importantly, they’re effective navigation tools leading people into all Peacock has to offer. Many viewers are entranced by events they knew little about, like when Peacock on Tuesday highlighted Cuban Mijain Lopez winning a fifth straight gold medal in Greco-Roman wrestling. Such an achievement would be lost on television, since NBC focuses on high-profile sports like gymnastics, swimming and track. “As a lifelong Olympic watcher and a lifelong Olympic broadcast/streaming complainer, really have to hand it to NBC for how incredible Peacock has been this go around,” Brandon Wall, a social media director at CBS News, wrote on X. Kelsey McKinney of defector.com, which covers sports and culture, wrote that Peacock had created the perfect Olympic experience for someone like her. “This is such a sensible approach — one that understands and respects the desires of an average viewer — it’s almost hard to believe an American network came up with it,” McKinney wrote. The Games themselves have lent a hand The Paris games have also afforded Peacock some advantages, including strong performances by the U.S. team and a return to crowds at events after COVID-19 restrictions. A time zone six hours ahead of the eastern United States also helped; NBC would have hated that in the past, since there are no live events available for its prime-time show, but it’s a bonanza for Peacock users in the afternoon. More people working at home in the post-COVID era is also helping Peacock, Lazarus speculated. “It’s probably not hard to imagine a lot more people are watching the Olympics from their home offices than they would from cubicles,” he said. Peacock offers other Olympics features, including a personalized highlights package narrated by an artificial intelligence-generated voice of Al Michaels, and a comic look with Kevin Hart and Kenan Thompson. Since the games have started, it has begun offering a collection of Snoop Dogg moments from NBC broadcasts, and a service that shows medal ceremonies since consumers requested it. Peacock had 33 million paid subscribers earlier this year. NBC would not say how many people have signed up for the Olympics. The key question for NBC Universal is how many of those new subscribers will be motivated to stick with Peacock after the games end. They don’t necessarily need a lot of those new customers to stay for it to be considered a success, Moffett said. Lazarus said that some 70 percent of people who signed up for the service because it was broadcasting an NFL playoff game last winter wound up keeping their subscriptions for at least three months. “I feel really good about it,” he said. ___ David Bauder writes about media for the AP. Follow him at http://twitter.com/dbauder.

Iran warns airlines to avoid its airspace for 3 hours on Thursday over military drills, Egypt says 2024-08-07 19:11:26+00:00 - CAIRO (AP) — Egypt’s Civil Aviation Ministry said Wednesday it has ordered Egyptian airlines to avoid Iranian airspace for three hours the following day after a notice from Tehran to do so because of military exercises. The warning comes amid soaring tensions in the region following last week’s assassination of Hamas’ leader in Tehran. The Egyptian ministry said the warning came in a notice sent by Iran to all commercial airlines. The ministry said the ban from Iranian airspace was to last for three hours, 4:30 a.m. to 7:30 a.m. on Thursday. Iran’s warning also covered three hours earlier on Wednesday, the ministry added. Speaking to Iran’s ISNA news agency, the head of Iran’s international airport in Tehran, Saeed Chalandari, denied reports of a warning against entering the airspace of western Iran, but it was not clear if that applied to the entire country. Israel has been bracing for an attack by Iran and its allied militias over the assassinations in Tehran of Hamas’ top leader Ismail Haniyeh and a senior Hezbollah commander in Beirut. Iran and Hamas have blamed Israel for the July 31 explosion in Tehran that killed Haniyeh. Israel has neither confirmed nor denied responsibility. The escalation prompted many international carriers to suspend flights to Lebanon, Israel and Iran.

In a reversal, Disney's media assets are starting to generate more excitement than its parks 2024-08-07 19:05:00+00:00 - Here’s a surprise: Disney’s media business isn’t weighing down the company anymore. The primary Disney investor narrative since 2022 has been how streaming losses, combined with a declining traditional pay TV business and a string of box office failures, have been anchoring surging sales and profits at the company’s theme parks and resorts. The result has been a company whose shares have fallen about 24% in the past two years, while the S&P 500 has gained 28% in the same period. The company’s second-quarter results suggest a shift is happening. Disney’s combined streaming businesses — Disney+, Hulu and ESPN+ — turned a quarterly profit for the first time ever, making $47 million. That’s a significant improvement from losing $512 million in the same quarter a year ago. Disney’s theatrical unit is also on a hot streak. “Inside Out 2” became the highest-grossing animated film of all time in recent weeks. “Deadpool & Wolverine” has taken in $824 million after two weeks of global release. Disney has become the first studio in 2024 to top $3 billion in worldwide ticket sales. Meanwhile, Disney saw a “moderation of consumer demand towards the end of [fiscal] Q3 that exceeded our previous expectations” for its theme parks division. That caused shares to slump about 3% in early trading. Disney Chief Executive Officer Bob Iger said during his company’s earnings conference call that he expects the momentum for the media business will only gain steam. That’s music to the ears of Wall Street, which wants both growth and profitability. “We feel very bullish about the future of this business,” Iger said in reference to streaming. “You can expect that it’s going to grow nicely in fiscal 2025.” Iger referenced a planned crackdown on password sharing, which will begin “in earnest” in September, as a tool that will help generate new subscribers and added revenue for the company. A similar effort from Netflix has helped the world’s largest streamer add new customers during the past year. Disney is also raising prices for its streaming services in mid-October. Most plans for Disney+, Hulu and ESPN+ will cost $1 to $2 more per month. Iger rattled off a list of movie titles that Disney hasn’t yet released to emphasize the studio’s solid positioning for the rest of 2024 and beyond. “Let me just read to you the movies that we’ll be making and releasing in the next almost two years,” Iger said. “We have ‘Moana,’ ‘Mufasa,’ ‘Captain America,’ ‘Snow White,’ ‘Thunderbolts,’ ‘Fantastic Four,’ ‘Zootopia,’ ‘Avatar,’ ‘Avengers,’ ‘Mandalorian’ and ‘Toy Story,’ just to name a few. When you think about not only the potential of those in box office but the potential of those to drive global streaming value, I think there’s a reason to be bullish about where we’re headed.” Disney isn’t de-emphasizing the parks. The company said last year it plans to invest $60 billion in its theme parks and cruise lines in the next decade. But it’s undoubtedly healthier for the company to persuade investors that the media units aren’t weighing down the share price. Disney shares dropped Wednesday, likely because investors were focused on the parks. The next step is for shares to rise during a quarterly earnings report because investors are excited about the media units.

NASA Says Boeing Starliner Astronauts May Fly Home on SpaceX in 2025 2024-08-07 18:55:02+00:00 - For weeks, NASA has downplayed problems experienced by Starliner, a Boeing spacecraft that took two astronauts to the International Space Station in June. But on Wednesday, NASA officials admitted that the issues might be more serious than first thought and that the astronauts might not return on the Boeing vehicle, after all. The agency is exploring a backup option for the astronauts, Suni Wiliams and Butch Wilmore, to instead hitch a ride back to Earth on a spacecraft built by Boeing’s competitor SpaceX. The astronauts’ stay in orbit, which was to be as short as eight days, could be extended into next year.

Google's antitrust ruling has experts looking to 25-year-old Microsoft case for answers 2024-08-07 18:48:00+00:00 - In ruling Monday that Google has held a monopoly in internet search, U.S. judge Amit Mehta invoked the company at the center of the most famous tech antitrust case in U.S. history: Microsoft. A federal judge determined in 1999 that Microsoft had illegally used the market power of its Windows operating system to box out rival browsers, namely Netscape Navigator. A settlement in 2001 forced the software giant to stop disadvantaging competitors in its PC deals. Google’s landmark case, filed by the government in 2020, alleged that the company has kept its share of the search market by creating strong barriers to entry and a feedback loop that sustained its dominance. The court found that Google violated Section 2 of the Sherman Act, which outlaws monopolies. “The end result here is not dissimilar from the Microsoft court’s conclusion as to the browser market,” Mehta wrote in his 300-page ruling. “Just as the agreements in that case help[ed] keep usage of Navigator below the critical level necessary for Navigator or any other rival to pose a real threat to Microsoft’s monopoly, Google’s distribution agreements have constrained the query volumes of its rivals, thereby inoculating Google against any genuine competitive threat.” Mehta said one key similarity is the “power of the default.” For Google, that refers to its search position on Apple’s iPhone and Samsung devices — deals that cost the company billions of dollars a year in payouts. “Users are free to navigate to Google’s rivals through non-default search access points, but they rarely do,” Mehta wrote. Mehta said a separate trial will take place on Sept. 4, to determine the remedies, or penalties against Google. At that point, Google can appeal, a process that experts said could take around two years. Microsoft appealed its initial ruling before ultimately settling with the Department of Justice. “All along, the government has implicitly and explicitly said they’re basing this case on the Microsoft case,” said Sam Weinstein, law professor at Cardozo Law School and a former DOJ antitrust lawyer. In the case of Microsoft, Judge Thomas Penfield Jackson found that the company forced PC makers to include its Internet Explorer browser in Windows, and threatened to punish them for installing or promoting Navigator. The judge proposed that Microsoft divest either its operating system business or its applications business, which both enjoyed market leadership. After Microsoft’s successful appeal, a U.S. District Court banned the software company from retaliating against device makers for shipping PCs that include multiple operating systems. Microsoft was required to give software and hardware companies the same programming interfaces that Microsoft middleware employs to work with Windows. Nicholas Economides, an economics professor at New York University’s Stern School of Business, said the similarities in the Google case are clear. “My first reaction on this is that Google appears to lose across the board,” Economides said. “This big blow reminded me of the Justice Department’s win against Microsoft.” Risk to core search The most likely outcome, according to some legal experts, is that the court will ask Google to do away with certain exclusive agreements. The court could suggest that Google make it easier for users to try other search engines. While a monetary penalty is also on the table, the bigger risk is that Google will have to alter its business practices in a way that undermines profitability. For example, if Google can no longer be considered a default search engine on smartphones, it could lose a significant chunk of business in its core market. In the second quarter, “Google Search & Other” accounted for $48.5 billion in revenue, or 57% of Alphabet’s total revenue. In its appeal, Google will likely introduce fresh evidence that artificial intelligence has played more of a role in competition, a dynamic that didn’t exist when the DOJ filed its initial lawsuit. However, it’s a perception Google has tried to downplay since being upstaged by OpenAI’s ChatGPT. Neil Chilson, former chief technologist for the Federal Trade Commission and currently head of AI policy at the Abundance Institute, sees increased competition for Google due in part to AI, which could help the company’s case. “The rigid market definitions means the court finds that Google has illegally maintained a monopoly in general search,” Chilson said. But “search vertical providers” like Amazon and AI services like ChatGPT “threaten to upend Google’s entire general search advertising business model,” Chilson said. Google shares didn’t move much after Monday’s ruling, as the stock was already trading lower due to the broad market sell-off. The stock slipped another 0.6% on Tuesday to close at $158.29. Google didn’t provide a comment for this story. Since Mehta didn’t discuss potential remedies in the ruling, investors and analysts are forced to wait. Experts say it’s unlikely that Google will be forced to break itself up. “I think there were obvious business lines you could spin off in the Microsoft case but it’s not as obvious here,” Weinstein said, adding that divestiture is rarely ordered for a Section 2 case. The trial beginning Sept. 4 will produce some important answers. Bill Baer, who formerly ran antitrust divisions at both the FTC and DOJ, said the Microsoft precedent makes the case against Google a strong one. “It’s hard to say at this point what the DOJ is going to seek and what the judge is going to accept,” Baer said. — CNBC’s Jordan Novet contributed to this report.

‘Fun Midwestern Dad’ or ‘Radical’? How Media Outlets on the Left and Right Are Covering Tim Walz. 2024-08-07 18:41:02+00:00 - Tim Walz, the governor of Minnesota, has cultivated an Everyman persona throughout his political career, cajoling his vegetarian daughter to eat a corn dog at the state fair, posting videos of himself suggesting simple fixes to car problems and calling Republicans “weird” on cable television. And after he was announced as Vice President Kamala Harris’s running mate on Tuesday, partisan media outlets on the left and right either leaned into that characterization or rejected it outright. Writers and commentators at liberal outlets used adjectives like “normal” and “vanilla” to describe his potential appeal to voters in swing states, all while praising Mr. Walz’s stances on progressive issues like abortion and gay rights. Though some conservative outlets acknowledged Mr. Walz’s “folksy manner,” they suggested it was a sheen that could obscure what they called dangerously radical, far-left views on issues like immigration and abortion.

SpaceX mission to space station delayed as Boeing tries to bring astronauts home 2024-08-07 18:31:00+00:00 - A SpaceX mission to the International Space Station has been delayed by a month as Nasa and Boeing continue to work out how it will bring two astronauts stuck at the station back home. The SpaceX Crew-9 launch was initially scheduled for mid-August. Nasa now says the mission will launch after 24 September. “This adjustment allows more time for mission managers to finalize return planning for the agency’s Boeing Crew Flight Test currently docked to the orbiting laboratory,” Nasa said in a statement. The agency said Nasa and Boeing engineers were “taking their time” to analyze recent tests, finalize flight rationale and “confirm system reliability ahead of Starliner’s return to Earth”. “No decisions have been made regarding Starliner’s return,” the agency said. Boeing’s Starliner launched on 5 June with two astronauts, Sunita Williams and Barry Wilmore, on board. The mission – the first crewed flight for the Starliner – was supposed to last about eight days but has now run nearly eight weeks over schedule. Boeing said in July that after rigorous ground tests, engineers pinpointed issues within the Starliner, including the abrupt malfunction of thrusters and helium leaks. In a 2 August statement, the company said its “confidence remains high in Starliner’s return with crew”. Recent reports have suggested there is more conflict behind the scenes between Nasa and Boeing leaders. Some of the agency’s leaders appear to question whether the Starliner should bring Williams and Wilmore back. The Wall Street Journal reported on Wednesday that Nasa may involve SpaceX in backup plans to bring the astronauts back. Boeing did not immediately respond to a request for comment. Space experts told the Guardian it was not unusual or unexpected for an experimental spaceflight to develop issues. “It’s defined as a test mission, it’s called a crewed test flight, and one of its things is to deal with unplanned issues,” said Jerry Stone, senior associate of the Space Studies Institute and author of One Small Step. But the stakes are high for Boeing, which has been battling a PR crisis for the last few years over its aircraft. At the company’s last press conference about the Starliner, Mark Nappi, Boeing’s commercial crew program manager, said he regretted being so “emphatic” about how the mission would last only eight days. “It’s my regret that we didn’t just say we’re going to stay up there until we get everything done that we want to go do,” Nappi said. Nasa is expected to hold a press conference on Wednesday afternoon, its first since 25 July.

Businesses in England board up amid fears of far-right violence 2024-08-07 18:24:00+00:00 - Businesses have boarded up, closed or plan to close early amid fears about potential violence as more than 100 far-right rallies across England were planned for Wednesday night. Employers across the country also told employees who felt vulnerable that they could work from home. In Birmingham’s Jewellery Quarter district, some businesses closed early on Wednesday or were boarded up before the expected disorder. “It’s very eerie out there,” one user said on X. Shops and restaurants in Bristol were also seen covering windows and doors close to the offices of immigration lawyers in the Old Market area. In Finchley, north London, some shops along the High Road had shut. Foxtons North Finchley estate agents closed “due to the situation in London” and the “potential violence” that could result from the planned rallies, said a worker from the head office reception. The company had also closed other premises in north London – in Walthamstow and Harrow – as well as south London in Croydon, all areas with immigration law and advice centres listed as targets. Many businesses in Middlesbrough’s town centre also closed early on Wednesday. Cleveland police said it was “aware there is growing speculation about potential further disorder in Middlesbrough and Redcar”. Several businesses in the centre of Aldershot, Hampshire, were boarded up on Wednesday evening. Some shops had notes on their windows saying they had closed early, while others warned potential rioters that they had video recording equipment. Violence so far has largely targeted mosques, hotels housing asylum seekers, libraries and shops. Saira Hussain, who runs HAD, an architectural practice with offices in Manchester, Burnley, Blackburn and north London, said a shop near her Mancunian office recently had its windows smashed and that neighbouring businesses had had their shutters down since the start of the week. “August is our busiest time of year usually,” she told PA Media, adding that the area had been a “ghost town” since Monday. “I bet I’ve contributed much more to this country than any of these people that are causing trouble,” she added. “It would be nice to live and work in peace.” View image in fullscreen A boarded-up Tesco store in Birmingham. Photograph: Darren Staples/AFP/Getty Images An office manager at an immigration advisory service in the East Midlands said he felt “very, very scared and very upset” over the threats his workplace had received and that surrounding businesses felt the same. The man, who wished to remain anonymous, said: “Around this area, all of the shops that are next to us, they’re very scared as well.” In Essex, small businesses in Westcliff-on-Sea boarded up their shopfronts before planned action nearby and said police had been visiting local stores to offer their support and advice on precautions they could take. One X user posted a screenshot of a text from their manager that said people who did not feel safe to come in should work from home. They captioned the post: “The fact that my manager even has to send this message in 2024 is so disheartening.” The manager’s message said: “If any of you feel particularly vulnerable with the current disturbances across the UK, it is fine to work from home tomorrow until this ridiculous situation goes away.” Helen Dickinson, the chief executive at the British Retail Consortium, said: “Many retail workers have been heading to work fearing their stores and their safety could be compromised by the looting and vandalism that has taken grip in various parts of the country. “The full force of the law should be brought to bear on those individuals who are committing criminal damage and theft against retailers and the communities they are part of.” Martin McTague, the national chair of the Federation of Small Businesses, said small businesses had found themselves “on the frontline” of recent public disorder and violence and that many had helped to clean up their streets afterwards. “Local small business success rests on local support, in welcoming environments where people want to be. The images of the last few days are the opposite, and it must stop,” he said. Sarah Sackman, the MP for Finchley and Golders Green, posted a statement on X earlier this week after a service helping immigrants in Finchley was included in the list of targets. She said: “A service helping immigrants in Finchley has been included in a list of targets of far-right groups planning actions this week. This is disgusting. “We will not let the far right divide us. Our hope will conquer their hate. Those who perpetuate violence and hate will face the full force of the law.”

Elon Musk is being ridiculous. Companies are free to choose where to advertise 2024-08-07 18:09:00+00:00 - It is less than a year since Elon Musk told advertisers who were shunning his social media site, X, that they could take their business elsewhere permanently. In fact, he encouraged them to do so. “Don’t advertise,” he said, amid a backlash over his endorsement of an antisemitic tweet. “If someone’s going to try to blackmail me with advertising, blackmail me with money, go fuck yourself.” The instruction had the virtue of clarity. Everybody knew where they stood. Advertisers who took the view that X has become a poisonous sewer under Musk’s ownership – or even just those who merely regarded the site as the wrong place to promote soap and suchlike – could seek other venues. And X would thrive or fail without them. Now Musk has had a change of heart. X has launched a lawsuit in Texas claiming it is the victim of an “illegal boycott” by advertisers. Unilever and Mars, the consumer goods groups, Danish windfarm operator Ørsted, and American healthcare group CVS Health are the targets, alongside a body called the Global Alliance for Responsible Media (Garm). The companies, supposedly, withheld “billions of dollars in advertising revenue” from X in a malicious conspiracy that violated US antitrust law. It is probably unwise to predict what a US court may decide, but this case deserves to be thrown out for being ridiculous. “No small group of people should be able to monopolise what gets monetised,” argued X’s chief executive, Linda Yaccarino, as if companies should be compelled – by who? – to advertise on certain media outlets. Come on, you’re running a profit-seeking business, like most of the rest of the media world. If you can’t make the revenues stack up, that’s your problem. If anyone is guilty of showing monopolistic tendencies here, it is X in believing it deserves to be protected from everyday commercial pressures. To see how advertisers think in practice, read the testimony from Herrish Patel, president of Unilever USA, who explained in detail to a US House of Representatives committee last month how the company allocates its advertising dollars. Unilever was stung by an early case on Facebook of ads for its Dove soap being placed adjacent to posts glorifying rape and domestic violence. The company drew the understandable lesson that it wanted to deal with “responsible” platforms that took more care. “Similarly, the Unilever brands that are trusted and appeal broadly to all Americans are not served by content that is divisive or politically polarising,” Patel wrote. In 2020 – long before Musk bought Twitter, as it was then– Unilever “pulled back” from social media advertising. These days, he said, only 20% of the company’s advertising goes on social media platforms, and less than 1% to digital news. The bulk of the digital spend is directed at the websites of Amazon, Walmart and Target and so on for the boring reason that shoppers there are close to making buying decisions. That is not a conspiracy; it is an advertiser assessing its commercial interest. The House judiciary committee somehow swallowed the Musk-friendly line that members of Garm were engaged in antitrust behaviour, but it’s hard to see how that conclusion fits the facts. Garm is mostly concerned with allowing companies to know where their digital advertising appears. The choice of where to spend remains with the company. “Unilever, and Unilever alone, controls our advertising spending,” said Patel – a statement that, again, should be entirely unremarkable. 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 There really isn’t a mystery about why X’s revenues may be falling. Trust levels with advertisers are low, and the likes of Amazon deliver a bigger bang for the same buck. You can see the same process in the UK, where big supermarket chains are investing heavily in “retail media” and sharing data insights from their online operations with brand companies. X is being outcompeted on the advertising front. The company could try helping itself by investing in content moderators. But it’s all competition in action. Even if X, miraculously, were to win its attention-seeking lawsuit, advertisers will still form their own views on where they get the best returns and where they have “brand safety”, as they put it. A “free speech absolutist”, you’d think, would understand that.

Taylor Swift concerts in Vienna canceled after Austrian police say foiled terrorist plot targeted shows 2024-08-07 17:47:00+00:00 - Taylor Swift's Eras Tour shows in Vienna have been canceled because of what Austrian police say was a planned terrorist attack targeting the concerts. "With confirmation from government officials of a planned terrorist attack at Ernst Happel Stadium, we have no choice but to cancel the three scheduled shows for everyone’s safety," Barracuda Music, an event organizer in the city, posted Wednesday evening on Instagram. Taylor Nation, an Instagram account affiliated with Swift's team, reposted the message to its story. According to the post, all tickets will be refunded and ticketholders can visit a website to request refunds. Swift's website also appears to reflect the cancellation. The Vienna shows under the "tour" tab now have a note accompanying the date and location information. "*All tickets will be automatically refunded within the next 10 business days," it says. Swift has yet to say anything on social media, nor has she confirmed the cancellations. Swift was scheduled to perform at the Ernst-Happel-Stadion in Vienna on Thursday, Friday and Saturday for the international leg of the Eras Tour. Earlier, officials said two men were arrested Wednesday in connection with allegations of plans to attack major events in Vienna, including Swift's coming concerts. Two U.S. officials familiar with the investigation said Austrian law enforcement is looking for an additional person or people who may have some knowledge of the plans. One of the men who were arrested by Austrian federal and state police was a 19-year-old who is alleged to have pledged his allegiance to ISIS, Vienna State Police Director Franz Ruf and Police Chief Gerhard Pürstl said at a news conference Wednesday. The pair had aspirational plans for attacking Vienna’s major events sites and specifically had homed in on this coming weekend’s Swift concerts, according to two U.S. officials briefed on the matter. They both became radicalized through the internet and are alleged to have had specific and detailed plans for how to carry out an attack, the officials said. They had been under surveillance for some time and were well-known to the Austrians, the officials said. A bomb squad found chemical substances when the 19-year-old man was arrested, authorities said. Investigators were working to determine whether the substances could have been used to build a bomb, authorities said. Officials said that the 19-year-old man bought chemicals but not all the components needed to assemble a bomb and that most likely he would not have been able to do before this weekend’s events. However, the officials say Austrian law enforcement believed that they should be taken into custody to make sure the pair did not try to conduct an attack using other means. Ultimately, the two were arrested as officials announced a robust security plan had been put in place for the Swift concerts and Vienna at large. Swift’s team then announced that the concerts would be canceled. Austria’s Cobra unit, which is similar to the FBI’s Hostage Rescue Team, assisted with the arrests. The investigation continues. Officials in Europe and in the U.S. told NBC News that there was no specific plot to injure Swift herself but that the attack was focused on the event. A police official had said earlier that there were no plans to cancel the concerts and told reporters that "the concrete danger has been minimized." It is not clear why those plans changed. Swift has spoken about her concerns of a terrorist attack at one of her stadium shows. In 2019, she told Elle magazine it was her biggest fear. "After the Manchester Arena bombing and the Vegas concert shooting, I was completely terrified to go on tour this time because I didn’t know how we were going to keep 3 million fans safe over seven months," Swift said ahead of the Lover Tour, which was then canceled because of Covid. She added, "There was a tremendous amount of planning, expense, and effort put into keeping my fans safe." "My fear of violence has continued into my personal life," she said. "I carry QuikClot army grade bandage dressing, which is for gunshot or stab wounds." Swift rarely cancels shows. Most recently, she postponed the second of three Eras shows in Rio de Janeiro because of extreme temperatures after a fan died at the first of the shows owing to the heat. This is a developing story. Please check back for updates.

Recalled Diamond Shruumz edibles now linked to 113 illnesses, 2 deaths 2024-08-07 17:42:00+00:00 - The tally of illnesses linked to recalled Diamond Shruumz edibles has surpassed 100 people — and the potentially toxic products may still be on the market, federal safety officials warn. The number of those stricken after consuming the recalled products now stands at 113 people in 28 states, with 42 hospitalizations and two potentially associated deaths, according to an update Tuesday from federal regulators. Sold online and nationwide, the recalled products were distributed in all 50 states as well as in the District of Columbia and Puerto Rico. The Food and Drug Administration said it has updated its list of roughly 2,000 shops and locations where the recalled products were sold. The agency also cautioned that the list may lengthen and that possibly toxic products may still be for sale at additional outlets. Those hospitalized include at least two kids in Arizona. One of the deaths being investigated involves an adult in North Dakota who wasn't hospitalized before dying, state officials have said. Recalled Diamond Shruumz-brand microdosing chocolate bars, cones and gummies. U.S. Food and Drug Administration Santa Ana, California-based Prophet Premium Blends in late June recalled all of its Diamond Shruumz brand infused cones, chocolate bars and gummies due to toxic levels of muscimol from Amanita mushrooms. Testing of Diamond Shruumz brand chocolate bars by the FDA detected other undeclared substances like psilacetin, sometimes nicknamed "synthetic shrooms." The company's recall came three weeks after federal and state officials said they were investigating a series of illnesses related to eating Diamond Shruumz Microdosing Chocolate Bars. Those who became ill reported severe symptoms including confusion, seizures, loss of consciousness, abnormal heart rates, nausea and vomiting. What the FDA is advising Do not buy or eat any flavor of Diamond Shruumz-brand chocolate bars, cones or gummies. Check homes for and throw away or return any recalled products. Parents should talk about the FDA's advisory with their kids, as the products may appeal to children and teens. Those sickened after eating the products should call their doctor or the poison helpline at 1-800-222-1222.

Why does Rachel Reeves want to copy Canada’s pensions model? 2024-08-07 17:28:00+00:00 - The chancellor, Rachel Reeves, met the bosses of Canada’s big retirement schemes in Toronto on Wednesday, prompting speculation that Labour is planning to bring the country’s public pension model to the UK. But what would that entail and could such a change actually work? How is a Canadian-style pension scheme different from the UK model? Canada’s public sector pension schemes, like those in Norway and Australia, have been consolidated into larger funds which are managed in-house by professional investors. Once pooled, public sector retirement funds can invest larger sums of money into a wider range of riskier and long-term assets like infrastructure, startups and private equity. Canada’s top schemes, known as the Maple 8, collectively manage around $2tn (£1.1tn) worth of taxpayer-backed pension schemes for the likes of teachers, municipal employees and healthcare workers. In the UK, however, there is a focus on reforming one single, but very large, portion of the pension landscape: the local government pension scheme. The LGPS is the national pension scheme primarily for people employed by local governments. It is one of the largest defined-benefit schemes – offering final salaries to retirees – in the world, with 6.5 million members, and £360bn in assets. However, the scheme is fragmented into 86 individually managed retirements funds that vary in size: while Orkney and the Isle of Wight had around £500m and £700m in assets, respectively, as of 2022, Greater Manchester had around £27bn. Those pushing for consolidation say a pooled LGPS fund would be able to deploy large sums of cash to growing businesses and infrastructure projects, including in the UK. Critics of the current model also say pooling would help reduce inefficiencies, helping save at least £1bn in fees paid to teams of lawyers, banks, advisers, asset managers and actuaries each year. Is this idea new? There have been various attempts to create superfunds of some type over the past decade. In 2015, the then prime minister, David Cameron, started to push local government pension scheme funds into larger pools, with the intention of cutting investment costs and allowing for collective investment in assets like infrastructure. However, there was no immediate deadline for how quickly individual schemes had to shift their assets into intermediate vehicles, which themselves came under fire for adding another layer of costs. Only £145bn or 39% of LGPS assets have been transferred to the eight current pools, according to the Pensions and Lifetime Savings Association, a trade association for workplace pensions. Last autumn, the Conservative then chancellor, Jeremy Hunt, hinted at further consolidation, saying that by 2040, all local government pension fund assets would be invested in vehicles worth £200bn or more, leading many to speculate he wanted to cut groupings down into two or three pools. However, so far governments have stopped short of introducing laws that would compel schemes to do so.

Weekly mortgage refinance demand soars 16% as rates sink to lowest level in over a year 2024-08-07 17:25:00+00:00 - Mortgage interest rates dropped last week to the lowest level since May 2023, causing a surge in mortgage demand from both homebuyers and especially current homeowners. Total mortgage application volume rose 6.9% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was at the highest level since January of this year. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) declined to 6.55% from 6.82%, with points falling to 0.58 from 0.62 (including the origination fee) for loans with a 20% down payment. “Mortgage rates decreased across the board last week ... following doveish communication from the Federal Reserve and a weak jobs report, which added to increased concerns of an economy slowing more rapidly than expected,” said Joel Kan, vice president and deputy chief economist at the MBA, in a release. Applications to refinance a home loan, which are most sensitive to weekly rate changes, jumped 16% for the week and were 59% higher than the same week one year ago. While the percentage increases are large, they are still coming off a very small base. The vast majority of borrowers today have loans with rates below 5%. There are less than 1 million borrowers who can benefit from a refinance and shave at least 75 basis points off their current rate. Applications for a mortgage to purchase a home increased just 1% for the week, but were still 11% lower than the same week one year ago. “Despite the downward movement in rates, purchase activity only saw small gains, with an increase in conventional purchase applications offset by decreases in government purchase applications. For-sale inventory is beginning to increase gradually in some parts of the country and homebuyers might be biding their time to enter the market given the prospect of lower rates,” added Kan. Mortgage rates fell further to start this week, following a stock market rout Monday. They rose sharply again, however, on Tuesday after some more positive economic data. “This is how things often play out when the bond market forces a quick move to extreme rate levels. For example, several of the biggest drops in daily mortgage rates have followed quick moves to long-term highs,” wrote Matthew Graham, chief operating officer at Mortgage News Daily.

Super Micro Stock Drops Sharply After Earnings on Margin Concerns 2024-08-07 17:00:00+00:00 - Super Micro Computer Today SMCI Super Micro Computer $492.70 -124.24 (-20.14%) 52-Week Range $226.59 ▼ $1,229.00 P/E Ratio 27.62 Price Target $999.92 Add to Watchlist Super Micro Computer Inc. NASDAQ: SMCI stock is down more than 13% the morning after it delivered its fourth quarter and full-year 2024 earnings report. The curiosity isn’t why the stock is down but why it shot higher in the immediate aftermath of the report. The headline numbers were below analysts’ expectations. Revenue of $5.31 billion was roughly in line with the $5.32 billion that was forecast. However, earnings per share of $6.25 was down sharply from the $7.63 that analysts were expecting. Furthermore, Super Micro showed another decline in its profit margin, which is spooking investors. Get Super Micro Computer alerts: Sign Up Super Micro: Winning the Race but Not Getting the Prize Super Micro Computer's revenue has spiked sharply in the last 12 months due to demand for its products in data centers. In the last three quarters, that revenue growth has been matched by strong earnings growth making it not only one of the best artificial intelligence stocks, but one of the best technology stocks to own. However, even during those quarters, there were concerns that the company was winning a race to the bottom. That is the company’s servers are a notoriously low-margin business. The concern is that it will be difficult for the company to grow revenue at the rate needed to increase earnings at a rate that would support the company’s stock price. If you were concerned that SMCI stock was priced for perfection, these results are giving you a reason to sell. Super Micro's Higher Guidance Suggests That Context Matters Super Micro Computer Stock Forecast Today 12-Month Stock Price Forecast: $921.46 79.59% Upside Hold Based on 15 Analyst Ratings High Forecast $1,500.00 Average Forecast $921.46 Low Forecast $325.00 Super Micro Computer Stock Forecast Details Management was quick to point out that there were some mitigating factors to its declining margins. This included selling servers to hyperscale customers who have the power to command higher discounts. Plus, they had some outsized costs due to supply chain disruptions specific to its new Direct Liquid Cooling system. And based on the company’s forward guidance, it doesn’t believe those problems will be long-term concerns. The company is guiding for revenue between $26 billion and $30 billion in FY2025. The high end of that range is double the revenue the company generated in all of 2024. In terms of earnings, Super Micro didn’t offer full-year guidance but raised its guidance for the first quarter to a range between $6.69 to $8.27. At the low end, that would be 7% higher than the current quarter and 143% year-over-year. Super Micro Is Splitting Its Stock If you didn’t have enough to consider regarding SMCI stock, the company gave investors one more thing to consider. In late September, Super Micro will complete a 10-for-1 stock split. This was the key reason the stock shot up about 10% in after-hours trading. That means that once the split is completed, current shareholders will receive nine additional shares of SMCI stock for every share they own. However, as investors know, the split doesn’t change the company’s stock's fundamental value. So why split? In the case of Super Micro it may just be a case of managing its current growth. Revenue and earnings have shot higher on increased demand in the last two years. And consider that just five years ago, SMCI stock was trading for under $20 per share. This split will make the stock more accessible for investors who would prefer to buy full shares. Is SMCI Stock a Buy Before the Split? Every investor has to answer that question for themself. However, it’s worth noting that the sell-off in SMCI stock has pushed it near oversold territory. And considering the stock has been trading in a fairly defined range since April, there could be a bounce before the stock split closes. Before you consider Super Micro Computer, 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 Super Micro Computer wasn't on the list. While Super Micro Computer currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Walz brings extensive China experience to Democratic ticket 2024-08-07 16:00:00+00:00 - Walz, 60, first went to China after graduating from college in 1989, spending a year teaching English and American history and culture at a high school in the southern Chinese city of Foshan through Harvard’s WorldTeach program.His arrival coincided with a deadly crackdown by Chinese authorities on pro-democracy protesters in and around Tiananmen Square in the capital, Beijing, that severely strained China’s international relations. The bloody crackdown had a lasting impact on Walz, who saw it as all the more reason to go. “It was my belief at that time that the diplomacy was going to happen on many levels, certainly people to people, and the opportunity to be in a Chinese high school at that critical time seemed to me to be really important,” he later said in congressional testimony. Walz kept up his connection with China after returning to the United States, where he taught at schools in Nebraska and Minnesota. Through the company they set up, Educational Travel Adventures, Walz and his wife, Gwen, took groups of high school students to China every summer for years, even spending their honeymoon there. They were married June 4, 1994, the five-year anniversary of the Tiananmen Square crackdown. “He wanted to have a date he’ll always remember,” Gwen Walz, a fellow teacher, told a local newspaper before their wedding. Walz praised the people he met in China even as he criticized a government he saw as holding them back. “If they had the proper leadership, there are no limits on what they could accomplish,” he told the Nebraska newspaper The Star-Herald in 1990. “They are such kind, generous, capable people. They just gave and gave and gave to me. Going there was one of the best things I have ever done.” As a member of Congress, Walz has been outspoken on human rights issues in China, co-sponsoring the Hong Kong Human Rights and Democracy Act of 2017 and resolutions on Tiananmen Square and pro-democracy activists such as the late Nobel Peace laureate Liu Xiaobo. Walz traveled to Tibet in 1990 and again in 2015 as a member of a congressional delegation, and in 2016 had what he said was a “life-changing lunch” with the Dalai Lama, the exiled Tibetan spiritual leader. While China has facilitated modernization in Tibet, Walz told Congress, it was important to press the Chinese government “to ensure the preservation of traditional Tibetan culture.”He also served on the Congressional-Executive Commission on China, which is focused on human rights. “Walz is perhaps the most solid candidate when it comes to human rights and China on a major-party ticket in recent memory — if not ever,” Jeffrey Ngo, a senior policy and research fellow at the Washington-based Hong Kong Democracy Council who met with Walz in 2016, said in a post on X. Nonetheless, Walz’s China experience drew immediate suspicion from Republicans who accused him of being “pro-China.” “Tim Walz owes the American people an explanation about his unusual, 35-year relationship with Communist China,” Sen. Tom Cotton, R-Ark., said in a post on X. Walz’s ties with China also drew attention from social media users in the country, where commenters expressed hope as well as misgivings. “It’s rare to have an American politician openly say that the two countries can coexist without opposition,” read one comment on Weibo. Others said it was not necessarily a good thing for American politicians to be more familiar with China. “The more American politicians understand Chinese, the more they may suppress China, as they might see the Chinese government’s actions as a threat to democracy,” one commenter said.