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Norfolk Southern Investors Reject Plan to Oust Its Management 2024-05-09 13:21:23+00:00 - Shareholders of Norfolk Southern, the beleaguered freight railroad, on Thursday voted down an attempt by an activist investment firm to remove the company’s chief executive and take control of its board. But the activist, Ancora, a Cleveland firm, managed to secure a foothold at the company, after shareholders voted to place three of its directors onto Norfolk Southern’s 13-member board. Ancora had hoped to take control of the company’s leadership with an aim to cut costs and increase Norfolk Southern’s profits and stock price. The result is a partial victory for Norfolk Southern’s executives, who had to defend themselves against criticisms of the company’s safety record and its lackluster financial performance. A company train carrying hazardous chemicals derailed last year in East Palestine, Ohio, forcing residents to evacuate. The results of the shareholder vote, which were preliminary, were announced Thursday morning at a virtual company annual meeting.
Uber's Earnings Drop Is Investors Opportunity 2024-05-09 13:15:00+00:00 - Key Points Uber shares dropped yesterday following the Company's Q1 earnings report. Though they topped expectations on revenue, forward guidance came in light. There are several reasons to see this as a golden buying opportunity. 5 stocks we like better than Uber Technologies On a day when the broader market managed to finish flat, if not slightly up, shares of Uber Technologies, Inc. NYSE: UBER dropped more than 5%. It could have been worse, with the ride-sharing Company's stock trading down almost 10% at one point before a late rally. The catalyst for the drop was Uber's Q1 earnings report, which managed to top analyst expectations on revenue for the quarter but missed when it came to the crucial forward guidance paragraph. Whereas analysts were looking for full year gross bookings to be forecasted around $40 billion, the midpoint of Uber's $38.75 billion to $40.25 billion was below this. Get Uber Technologies alerts: Sign Up Repricing of Uber Shares Uber Technologies Today UBER Uber Technologies $67.93 +1.53 (+2.30%) 52-Week Range $37.07 ▼ $82.14 P/E Ratio 78.99 Price Target $82.55 Add to Watchlist While beating the consensus for past quarter performance is important, matching, if not beating, the consensus for performance in the coming quarters is even more so. This is because Wall Street is nothing if not forward-looking and prices a stock largely on the Company's expected growth. So when Uber essentially said they expect to close less revenue than previously forecasted, the shares have to be repriced to the downside. Hence the drop. If you're an investor, this will be a tough pill to swallow, especially as it's only a few weeks since Uber was trading at all time highs. But the 20% slide since they were set in March now threatens to turn into a proper downtrend. That being said, the second-half rally all through yesterday afternoon was interesting. While the stock still finished down on the day, an optimist might say it closed 4% higher from the low. And if the bears could not take shares down any further, does that mean the bulls are already back in control, and the light guidance has been priced in? Considering the Opportunity in Uber Watching how Uber shares trade through Thursday and into the weekend will be interesting. Any further momentum on the bid is likely to confirm that a recovery rally is in the works. Don't forget that Uber's revenue print for Q1 was the highest ever, while the Company's EBITDA jumped more than 80% year on year. Perhaps even more importantly, a host of analysts reiterated their Buy rating on Uber shares in the aftermath of yesterday's report. Take Wedbush, for example, who did just that. Needham & Company, too, gave Uber shares a fresh price target of $90. From the $66 that Uber closed at on Wednesday evening, that's pointing to a targeted upside of some 35%. If shares hit that in the coming weeks, it would also mean they'd be at a fresh all-time high and well above March's peak. Uber Technologies, Inc. (UBER) Price Chart for Thursday, May, 9, 2024 Getting Involved in Uber Stock For those of us considering buying into this view, watch for shares to trade above yesterday's low of $64 and see if they can start to consolidate. That might mean some sideways action, but the more we see of that, the more it will suggest that the bears cannot take shares any lower as there are simply too many buyers willing to step in. Eventually, they'll be forced to give in, yesterday's gap down will be closed, and the recovery rally that the likes of Needham are expecting will be able to materialize. It's worth noting that much of Uber's drop in the past two months coincided with the broader market dip, so with the major indices starting to recover this week, it could be perfect timing for Uber also to kick off a fresh recovery rally of its own. Before you consider Uber Technologies, 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 Uber Technologies wasn't on the list. While Uber Technologies currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Arm's Earnings Stumble Could Create A Golden Entry Point 2024-05-09 13:09:00+00:00 - Key Points Shares of Arm fell in Wednesday's after-hours session as the company's earnings report disappointed. They managed to beat expectations for the headline numbers but fell short regarding guidance. This could be creating a golden entry opportunity for those of us who are still bullish on the long term potential. 5 stocks we like better than ARM After popping more than 100% after their last earnings report in February, expectations would have been high for shares of Arm Holdings plc NASDAQ: ARM to continue rallying into the summer. The UK-headquartered semiconductor and chip software company was riding high off the back of a red-hot IPO and an AI-driven surge in demand for its products. But along with the rest of the equity market and tech stocks in particular, Arm saw its stock fall heavily from the end of March through most of April. At its lowest point, shares had fallen some 40%. That being said, they had managed to rally some 25% into last night's earnings report, as investors clearly bought into the idea that last month's slide was overdone and there was simply too much potential for shares to be held down. However, they were in for a rude awakening after the bell rang to end Wednesday's session. Get ARM alerts: Sign Up Headline Beat, Guidance Miss While they managed to beat analyst expectations for the headline numbers, with year-on-year revenue growth of 46%, the company's forward guidance disappointed. For a business still working to establish a track record of consistently profitable quarters, stumbles like this can spook investors. While the year to date has seen some return to the risk-on sentiment that drove stocks to record high prices amidst record low interest rates after the pandemic, the macro environment is very different today. Wall Street and investors alike have higher expectations and are less willing to look past or forgive any unexpected decline in momentum. So while Arm was able to post fiscal Q4 non-GAAP EPS of $0.36, beating the consensus by 16%, and revenue of $928 million, beating the consensus by a cool $50 million, their lighter-than-expected forward guidance overshadowed this completely. For the full financial year, Arm is now forecasting revenue between $3.8 billion and $4.1 billion and non-GAAP EPS between $1.45 and $165. However, analysts had been looking for a minimum of $3.98 billion for the former and a minimum of $1.53 for the latter, meaning an adverse reaction in shares can now be expected. Arm Shares Fall We saw this materializing in Wednesday's after-hours session, where Arm shares fell 9%, having already given up more than 1% during the day session. Heading into Thursday's opening, it will be interesting to see how far this continues, with much of that 25% gain since April surely now at risk. However, this could be it for those of us on the sidelines who've been waiting for a good opportunity to get into a stock with some serious AI exposure. Just this week, the team at Rosenblatt Securities were reiterating their Buy rating on Arm shares while giving them a street-high price target of $180. While it's unlikely they were expecting the forward guidance to come where it did, that still points to a significant upside of almost 90% from where shares closed in last night's after-hours session. Arm Holdings plc (ARM) Price Chart for Thursday, May, 9, 2024 Getting Involved in Arm Holdings Let's not forget that it was a record revenue print for the quarter, too, which showed impressive year-on-year growth and has almost crossed the $1 billion mark for the first time. The company remains super bullish on its prospects, noting with the release that Arm has the world's largest computing ecosystem, and they expect this to continue growing. They're continuing to invest in software development, partnering with some of the other top AI companies. They are confident about remaining at the forefront of the industry's transition from on-premise to cloud. This lends itself to the theory that this could be a golden buying opportunity and one to watch closely in the coming weeks. Before you consider ARM, 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 ARM wasn't on the list. While ARM currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
How to Bet on a Large Stock Price Move with an Options Strangle 2024-05-09 13:00:00+00:00 - Earnings season always comes with its share of large stock price moves that exceed 10%. Typically, a stock that beats top and bottom line estimates and raises its forward guidance tends to gap up and vice versa gap down when it lowers its forward guidance. Of course, the market can also be irrational and gap a stock even on an earnings miss and lowered guidance. Trying to predict the direction and magnitude of a price gap can be futile. However, if you want to take that bet on a large price move in either direction, then you can use stock options to limit your risk. Namely, you may consider an options strategy called a long strangle. Get Roblox alerts: Sign Up What is a Long Strangle? A long strangle is a multi-leg options strategy comprised of buying 1 out-of-the-money (OTM) put option and 1 out-of-the-money call option with the same expiration date. These positions or legs are taken simultaneously, usually through a function on your online brokerage app. If your broker doesn't have a strangle trade option, then you can place the trades manually and individually. First, you buy the put option and then buy the call option. For example, an XYZ $50/$55 long strangle is comprised of a long 1 XYZ $55 put option and a long 1 XYZ $50 call option. When to Consider a Long Strangle Trade You can use a long strangle when you feel a stock will make a large move on an event or catalyst. These can be scheduled events like earnings reports, FDA advisory panel votes, product launches or legal verdicts. Determining the direction or magnitude of the price move can be unpredictable, but if you are certain the price move will be outsized by at least 10%, then you can take a measured risk with a long strangle trade. Example of a Long Strangle on RBLX Time for an example: a computer and technology sector, video game and platform developer Roblox Co. NYSE: RBLX. RBLX has a history of making large price moves on its earnings report. The stock has traded in a range between $47.11 and $32.81 in its past 2 earnings reports. Predicting which way RBLX will go upon its earnings release is fruitless. The daily relative strength index (RSI) is rising to the 64-band. If we consider a $3 spread for a long OTM strangle, we can use the $39 to $42 range or the $39 put and $42 call. The cost of both legs needs to be added to the strike prices to calculate the breakeven levels. Executing the Trade RBLX is currently trading at $40.72. If we look up the RBLX $39/$42 long strangle expiring May 10, 2024, we see the $39 put is priced at $1.58, and the $42 call is priced a $1.85. The total for the 2 positions is $3.42, the cost of the trade or debit. To execute the trade, you just click a button that will simultaneously perform both trades at the $3.42 price. If your online broker can't place one-click long strangle trades, then you'll have to manually buy the $39 put option for $1.58 and buy the $42 call option for $1.85. The Potential Outcomes Upon expiration, there are 3 potential outcomes. RBLX can close at two breakeven price levels: $35.58 and $45.42. The cost of the strangle trade is $3.42. We subtract and add the cost of the trade to each option strike price to derive the breakeven price, respectively. The $39 put minus $3.42 is $35.58. The $42 call option plus $3.42 is $45.42. The maximum loss is $342. This is the total cost for the trade. This occurs if RBLX closes between $42.00 and $39.00. The maximum profit is technically unlimited. However, we can use the prior trading range from $32.00 to $48.00. If RBLX rises to $48.00, the profit is $257 and continues to grow as it moves higher. If RBLX falls to $32.00, the profit is $357.00, and that continues to grow as it falls further. It’s Still a Gamble, But Measured. The title of this article starts with "How to Bet on a Large Stock Price Move…" The key word is "Bet." Any way you slice it, a long strangle is a bet. Some people call it a gamble, while others consider it speculation since your maximum loss is contained in the cost of the trade. Long strangles are an attempt to predict a large price move, which makes them a gamble but a measured one.
Bank of England keeps interest rates at 5.25% but hints at a June cut 2024-05-09 12:55:00+00:00 - The Bank of England has signalled it could start cutting interest rates as early as next month after inflation was found to be “moving in the right direction”, as it kept borrowing costs on hold at 5.25% for the sixth time in a row. Alongside the decision to keep rates on hold, the Bank said inflation was already on course to hit its target of 2% and would fall to just 1.6% in two years, opening the door to future cuts in interest rates. Giving a more upbeat assessment of the economic outlook than in its February report, the Bank also suggested the UK recession had ended, predicting the economy had grown 0.4% in the first three months of the year. The Office for National Statistics will publish the official estimate of growth on Friday. The nine members of the Bank’s rate setting monetary policy committee were split on the decision to hold interest rates, with two members – Swati Dhingra and Dave Ramsden – voting for an immediate cut to 5%. Dhingra was the lone voice calling for a rate cut at the previous meeting of the MPC. Andrew Bailey, the Bank’s governor, indicated that a rate cut next month was a possibility. “Before our next meeting in June, we will have two full sets of data – for inflation, activity and the labour market – that will help us in making that judgment afresh,” he said. “But, let me be clear, a change in bank rate in June is neither ruled out nor a fait accompli.” The Bank said a modest economic turnaround was unlikely to be inflationary, leaving the UK on course for several rate cuts this year. Financial markets have been pricing in two rate cuts this year, with the first expected in August. Bailey said: “With the progress we’ve made, to make sure inflation stays around the target, it is likely that we’ll need to cut bank rates in the coming quarters, possibly more so than is currently priced into markets.” A modest increase in unemployment over the next year is expected to lead to easing wage growth across the private sector, reducing the pressure on prices. Bailey said the MPC voted to wait and see after a majority agreed there needed to be more evidence of inflationary pressures remaining subdued. “We’ve had encouraging news on inflation and we think it will fall close to our 2% target in the next couple of months,” he said. “We need to see more evidence that inflation will stay low before we can cut interest rates. I’m optimistic that things are moving in the right direction.” The rate-setting US Federal Reserve is also closely watching data for signs the American labour market is weakening. Figures from the US Labor Department on Thursday showed that new jobless benefit claims rose by 22,000 to 231,000 in the week to 4 May. It was the highest since last August, and much more than the rise to about 210,000 predicted by economists. UK inflation fell to 3.2% in March, according to official figures, and is expected to have fallen to 2% in April after a reduction in the energy price cap. The Bank said inflation would be bumpy this year with a rise towards an average of 2.5% in the second half of 2024, before falling again in 2025 and 2026 to 1.6%. Increasing concerns that the conflict in the Middle East will widen and further disrupt shipping on major trade routes, raising prices, had so far been unfounded but remained a risk to the outlook, the Bank said in its latest report. Suren Thiru, head of economics at the accountancy body ICAEW, said the vote to hold rates was a missed opportunity to provide much needed relief for “those people struggling with their mortgage bills and businesses facing numerous cost pressures”. “Given the Bank is now forecasting inflation to fall more quickly, an interest rate cut by the end of the summer remains very much on the table,” he said, Raj Badiani, an economics director for the credit rating agency S&P Global, said the Bank’s tough stance “cast a dark shadow over the economy’s immediate recovery prospects”. He said millions of UK households remain trapped in the cost of living crisis that was being extended by high interest rates staying in place for longer than necessary, pushing up mortgage and rent. “The cost of living crisis is now being fuelled by spiralling housing costs, rising tax burden and historical high food and energy price levels,” he said.
Shopify Stock Took a Breather, Markets Stay Bullish On its Future 2024-05-09 12:49:00+00:00 - Key Points Shares of Shopify are trading lower by nearly 20% after the company reported its first quarterly earnings results, though the news isn't all bad. Investors can see the company's fundamentals growing at double-digit rates, and markets have noticed. Wall Street analysts see leading EPS growth ahead for Shopify, and price targets reflect the same trends. 5 stocks we like better than Shopify After reporting its first quarter 2024 earnings results, arguably the most important set of results as they set the tone for the rest of the year in any stock, shares of Shopify Inc. NYSE: SHOP are plummeting by as much as 20% during the trading session. However, investors could see that this is a mere breather before the stock makes a potential recovery. Sticking to the business fundamentals and further economic trends happening today in the U.S. economy, those who still have faith in Shopify’s value proposition could see more evidence backing a potential bull case. More than that, investors can gauge the stock’s future through a Wall Street analyst lens and how markets remain bullish on the name. Get Shopify alerts: Sign Up Comparing Shopify stock to peers like Salesforce Inc. NYSE: CRM and even Etsy Inc. NASDAQ: ETSY would show that, even after a steep decline in what turned out to be better than expected earnings, markets are still willing to pay a premium to be exposed to Shopify’s future earnings. It’s All a Business Cycle Scare Shopify Today SHOP Shopify $62.45 -0.28 (-0.45%) 52-Week Range $45.50 ▼ $91.57 P/E Ratio 693.97 Price Target $79.00 Add to Watchlist For the first time since the COVID-19 pandemic, the two most important economic sectors – responsible for GDP growth – contracted simultaneously: Manufacturing and services. Investors can follow these sectors’ activity through the ISM manufacturing PMI and the services PMI indexes. After contracting for more than 15 months, manufacturing looks to be returning, as it reported its first expansion reading for March 2024. On the other hand, services are slowing down to have their first contraction reading since 2020, but that’s not necessarily bad news. Of course, seeing a slowdown all across services, Shopify investors may have chosen to take profits off the table. However, a comeback in manufacturing can also signal a reset for services, as the two typically go hand in hand. And this time, the Federal Reserve (the Fed) comes to push both these sectors higher through proposed interest rate cuts this year. Initially expected to come in March 2024, the CME’s FedWatch tool shows a 48.5% probability of a 25 basis point rate cut by September instead. Indeed, postponing these cuts may have thrown off a few investors who chose to avoid what could be a highly cyclical stock in Shopify. Fundamentals Confirm, Just a Hiccup Investors can check out Shopify’s press release for the quarter’s results and see headlines leading with a 29% revenue growth over the year. Double-digit revenue growth is far from a characteristic a contracting business carries, so investors can ease their grip so far. If anything, businesses seeing their margins squeezed by stubbornly high inflation in the U.S. economy could call on Shopify’s solutions to help. Offering cheap and easy scalability to its customers, Shopify’s gross merchandise volume rose by 23% over the year to reach $60.9 billion. At the same time, the company’s subscription solutions revenue jumped by 34% in the past 12 months, showing the resiliency of the business model in a contracting economy. But here’s where investors can really begin to relax. Shopify’s free cash flow (operating cash flow minus capital expenditures) was reported at $232 million, up from $86 million a year prior (that’s a doubling!). However, all of this is in the rearview mirror. Hence, management’s guidance becomes just as important for investors trying to figure out where Shopify may be headed. A Bright Future Remains Shopify MarketRank™ Stock Analysis Overall MarketRank™ 4.30 out of 5 Analyst Rating Hold Upside/Downside 23.9% Upside Short Interest Healthy Dividend Strength N/A Sustainability -1.05 News Sentiment 0.64 Insider Trading N/A Projected Earnings Growth 50.85% See Full Details Management points to double-digit revenue growth in the coming quarter. Free cash flow will remain at a similar margin to the first quarter, helping investors reach wealth compounding by keeping this stock as a potential selection. Following this momentum, Wall Street analysts placed a 50.9% earnings per share (EPS) growth projection for this year in Shopify. The stock remains above Etsy’s 17.5% projections and 15% for Salesforce, and markets aren’t shy about making their preference for Shopify clear. Shopify stock trades at a forward P/E ratio of 49. x, commanding a premium of 93% over Salesforce’s 25.6x valuation. Today’s valuation also calls for a 139% premium over Etsy’s 20.7x. Stocks typically trade at premium valuations for a good reason. Wall Street analysts see more than double-digit EPS growth ahead. Analysts at Citigroup saw it fit to boost Shopify’s price targets up to $105. To prove these analysts right, the stock would need to rally by 67.2%, where investors have undeniable evidence to consider a second look into this recent dip. Bears don’t feel comfortable running into short Shopify stock, as short interest declined by 3.8% over the past month. Before you consider Shopify, 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 Shopify wasn't on the list. While Shopify currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
No New Highs for Cloudflare in 2024 2024-05-09 11:46:00+00:00 - Key Points Cloudflare had a solid quarter, but the results were tepid relative to analysts' consensus, giving no reason to rally. Analysts are lowering their targets and providing a headwind for the market. The stock could rebound within its range, but only a relief rally is expected, and range-bound conditions will likely persist. 5 stocks we like better than Cloudflare Cloudflare NYSE: NET is a great company growing its business and building leverage. However, despite the massive decline in the share price, the stock remains overvalued and faces headwinds that investors may want to avoid. The valuation alone is enough to keep the stock from moving higher. Trading at 95X next year’s earnings growth needs to accelerate for this tech stock, and it isn’t. Add in the analysts, and the change in their sentiment, and the odds are high that Cloudflare stock will remain range-bound this year. As uninteresting as it sounds, range-bound trading is an opportunity for investors seeking the leverage of options, providing an environment for advanced options strategies. Get Cloudflare alerts: Sign Up Analysts' activity following the Q1 release was mixed and included one upgrade and two boosted targets. However, the analysts also issued enough negative revisions following the release to put the stock in the 25th position on Marketbeat’s Most Downgraded Stock list. Their consensus rating is still a Hold, and the price target (trending higher) implies a 20% upside for investors, but sentiment has topped and is unlikely to lead the market to a new high. The salient point is that the 20% upside predicted by the consensus estimate will put the market smack in the middle of a trading range not likely broken until next year, if at all. Cloudflare has a Solid Quarter, Issues Weak Guidance Cloudflare Today NET Cloudflare $73.34 +0.89 (+1.23%) 52-Week Range $47.79 ▼ $116.00 Price Target $89.48 Add to Watchlist Cloudflare had a solid quarter , with top and bottom-line results outpacing the consensus estimate. Still, problems with the report will keep the market depressed for the foreseeable future. Among them is that 30.5% growth is a slowdown from last year’s pace, and the guidance forecasts an additional slowdown this year. That said, the 30.5% growth is underpinned by record net new clients contributing greater than $100,000, $500,000, and $1,000,000 in ARR, a detail that promises to sustain operations at current levels, if not growth. The margin news is the best of the report. The company is still generating GAAP losses, but the burn is shrinking and is primarily non-cash related. The adjusted results include a 70 bps improvement in the gross margin and a 450 basis point improvement in the operating margin that left it at 19% and FCF margin at 9%, with both results roughly doubling from the prior year. The adjusted $0.16 in earnings beat consensus by $0.03 and is double last year, including a higher share count. Guidance is also solid but falls into the bad news category because the projected revenue growth of 27% aligns with the expectation for strength and is the slowest pace of growth in years. Additionally, the margin is expected to contract sequentially, and the full-year guide is weak—no catalyst to rally for this highly-valued name. Institutional Support May Wane, Insiders are Selling Cloudflare Insiders have been selling Cloudflare for years due to its leaning into share-based compensation. However, sales ramped higher in 2023 and spiked to a multi-year high in Q1 2024, holding strong in Q2. Insiders own about 13% of the stock, so are a formidable headwind that is, for now, offset by the institutions. Institutions own about 80% of the stock and have been buying in 2024. The risk is that their activity is down significantly from 2023 and may wane or revert to selling now that results and guidance are in. The news isn’t a reason to sell per se, but with no dividend or share repurchases, there is little reason to hold while the market works through this phase. The Technical Outlook: Cloudflare is Range Bound Shares of Cloudflare sank more than 10% following its earnings release and could fall further. The market shows a volume-supported downdraft that could take it back to the lows near $40 if support at $70.25 is broken. The long-term 36-month EMA highlights support at $70.25 and may be strong enough to keep the market from falling further. Shares of Cloudflare are oversold at this level and could rebound in this scenario. The risk for investors is that any rally within the trading range should be viewed as a relief rally and only investible once there is a change in sentiment. Before you consider Cloudflare, 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 Cloudflare wasn't on the list. While Cloudflare currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Exxon vs. Chevron - The Battle Of The Dividend Giants 2024-05-09 05:21:00+00:00 - Exxon vs. Chevron - The Battle Of The Dividend Giants Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX), two of the largest oil companies in the U.S., are currently taking the global oil sector by storm. They are entangled in a high-stakes dispute over lucrative oil assets in Guyana. The clash between these energy giants has escalated as Chevron’s pending $53 billion acquisition of Hess Corp. aims to secure a strategic foothold in Guyana’s vast oil reserves, notably the Stabroek oil block. Exxon's Claim and Chevron's Stance Exxon, with a 45% stake in the Stabroek block, has adamantly asserted its right of first refusal over Hess’ assets in Guyana, citing a joint operating agreement (JOA). The JOA, a legal framework governing the operations, is under scrutiny as Exxon contends that any deal involving Hess must recognize its preemptive rights. On the other hand, Hess only has a 30% stake in the Stabroek block. "We want to make sure the rights afforded to us under the JOA are recognized and conformed with," Exxon CEO Darren Woods said during a recent interview with CNBC, adding, "It gives us the opportunity to ... make sure that we're making a decision that's in the best interest of the company and the shareholders." To this end, Exxon initiated arbitration proceedings at the International Chamber of Commerce in Paris, after Chevron disputed its assertion of a right of first refusal. Chevron has remained resolute in its pursuit of Hess despite the challenges. The company expects the conclusion of the shareholder vote and the Federal Trade Commission’s inquiry into the deal by the second quarter, paving the way for the acquisition to be concluded by the end of this year. Promising Dividends Notably, Exxon, the largest oil producer in the U.S., is a Dividend Aristocrat stock and is expected to become a Dividend King within the next decade. The company has raised its dividends for 41 consecutive years as of 2023, with the latest hike announced in the fourth quarter of 2023. Exxon currently pays $3.80 in dividends annually, yielding 3.28% on the current price. The oil behemoth's four-year average dividend yield stands at 5.06%. Chevron, on the other hand, boasts an even higher dividend yield, as it pays $6.52 per share annually. The company's dividend yield stands at 4.01% on the current stock price. Furthermore, its average dividend yield over the past four years is 4.39%. Don’t Miss: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." These three reliable high-yield ETFs will put your income investments on autopilot. Florida is home to some of the most rapidly growing real estate markets in the country, and this new platform will let you get a piece of the action with as little as $100. Story continues Economic Headwinds While both Exxon and Chevron are excellent dividend stocks, their financials have suffered as the macroeconomic turmoil continues. Chevron’s first-quarter earnings report reflected a mixed picture, with profits declining due to challenges in its refining and international gas segments. The company's revenues amounted to $46.72 billion in the first quarter, falling short of consensus estimate of $50.66 billion. In addition, Chevron's net income fell 16% from the same period last year to $5.55 billion. However, its adjusted earnings stood at $2.93 per share, beating the Wall Street estimate of $2.87. Exxon’s first-quarter performance was also underwhelming, as the company's net income declined by 28% year-over-year to $11.43 billion in the first quarter of 2024. The company attributed the poor performance to lower refining margins and plummeting natural gas prices. The ongoing clash between Exxon and Chevron not only highlights the intense competition for valuable assets but also underscores the shifting dynamics within the energy landscape. Diversifying with Private Market Real Estate While Exxon and Chevron offer attractive dividend yields, investors may want to consider diversifying their portfolios with private market real estate investments. One compelling opportunity is The Carling on Frankford, a Class B, 274-unit, garden-style multifamily property located in Carrollton, TX, offered by RealtyMogul. This value-add investment opportunity is being acquired off-market from a distressed seller by ClearWorth Capital, a vertically integrated multifamily owner with over 5,000 units under management in Texas. The Sponsor plans to implement a value-add renovation package to reprice the asset and close the gap in the market, potentially leading to higher returns for investors. RealtyMogul has a proven track record of delivering attractive returns to investors. As of March 31, 2024, the platform has realized a total investment amount of $222,665,450 across 230 investments, with an overall realized IRR of 19.5% and an overall target IRR of 15.1%. Click here to review offering details for The Carling By diversifying with private market real estate investments like The Carling on Frankford through RealtyMogul, investors can potentially enhance their portfolios with a combination of income and growth, complementing their holdings in dividend giants like Exxon and Chevron. Want to explore more private market real estate opportunities? Browse current investments that match your criteria on Benzinga’s Real Estate Offering Screener. This article Exxon vs. Chevron - The Battle Of The Dividend Giants originally appeared on Benzinga.com
What Technical Analysis Tells Us About the Bitcoin Market 2024-05-09 04:00:00+00:00 - Technical analysis has long been relied upon for investing in cryptocurrencies. The discipline lends itself well to the highly-volatile asset class, not only because cryptocurrencies are momentum-driven, but also because they are generally subject to less headline risk than equities, which can muddy supply/demand dynamics. Investors can better understand the risk-reward dynamics of the cryptocurrency market by combining momentum indicators and overbought/oversold measures with the identification of key support and resistance levels. Investors can source relative strength inputs to help spot opportunities. You're reading Crypto Long & Short, our weekly newsletter featuring insights, news and analysis for the professional investor. Sign up here to get it in your inbox every Wednesday. Real-time analysis of the chart of bitcoin shows that, as of early-May 2024, there was a loss of intermediate-term momentum per momentum indicators like the MACD (Moving-Average-Convergence-Divergence), which has a bearish crossover. The loss of momentum suggests that bitcoin is in a corrective phase that should persist for at least another few weeks. Downside risk can be framed by the next support on the chart, near $51,500, which is defined by a 38.2% Fibonacci retracement of the uptrend off the 2022 low and bolstered by a rising 200-day moving average. The loss of momentum should be viewed within a long-term bullish framework. Bitcoin broke out to new all-time highs in March 2024. The breakout extended bitcoin’s secular uptrend with implications for the coming months, if not years. This suggests that, once there are signs that a corrective low is in place, the risk/reward ratio will be more favorable for investors. The weekly stochastic oscillator , which is a gauge of overbought and oversold conditions, is a useful tool to help identify when a corrective low has been established. For now, the stochastics have room to oversold territory (20%), increasing the likelihood that a deeper pullback in price will happen before the long-term uptrend resumes. An upturn in the weekly stochastics from oversold territory would be a positive short-term technical catalyst for bitcoin, irrespective of the level at which it occurs. A relative strength input that is useful for identifying potential winners and losers in the cryptocurrency market is a Relative Rotation Graph ®, or RRG. The RRG shows altcoin rotation normalized relative to bitcoin, which is at the crosshairs of the graph. There is an inherent clockwise rotation by the altcoins in the RRG, helping us determine when certain altcoins are rotating into or out of favor versus bitcoin. Story continues Most altcoins in the graph point lower and to the left, which reflects bitcoin’s strong position in the market, particularly during a corrective phase which sometimes sees a flight to safety (in relative terms). We would expect most altcoins in the lower left portion of the graph to eventually rotate into favor as more risk-on positioning resurfaces in a sign that the corrective phase has matured.
Billionaire real estate investor Barry Sternlicht says he expects at least one bank failure per week due to real estate loans: ‘That’s a fragile animal right now’ 2024-05-09 01:51:00+00:00 - (Reuters) -The head of aircraft leasing giant AerCap predicted that tightness in global jet markets would last through the rest of the decade, fuelled by supply chain issues and conservatism on production among engine makers. "I believe it will take until the end of the decade before the airframers and the supply chain get together and work it out; that will be 2030, I suspect," CEO Aengus Kelly told a company investor event on Wednesday. He was speaking after AerCap gambled on continuing bottlenecks in MRO or repair shops by agreeing to buy 150 new spare LEAP engines from French-U.S. venture CFM, which powers all Boeing and some Airbus narrow-body jets. Reuters
Rents are rising faster than wages across the country, especially in these cities 2024-05-08 22:46:00+00:00 - Wages for the typical U.S. worker have surged since the pandemic, but for many Americans those gains are being gobbled up by rising rent. Rents jumped 30.4% nationwide between 2019 and 2023, while wages during that same period rose 20.2%, according to a recent analysis from online real estate brokers Zillow and StreetEasy. The gap between wage growth and rent increases was widest in large cities, including Atlanta; Charlotte, North Carolina; and Miami, Phoenix and Tampa. Other cities where renters are feeling the pinch include Baltimore, Cincinnati, Las Vegas, New York and San Diego. Rent soared during the pandemic as demand rose due to Americans fleeing major urban centers and opting for more space away from neighbors in the suburbs and rural areas. Rent is still increasing, housing experts say, although now at a slower pace. Some metros including Austin, Texas, and Portland, Oregon, have seen rent decreases in the past year, according to the analysis, a stark contrast to more populated cities like New York, which "is heading in the opposite direction," said StreetEasy Senior Economist Kenny Lee. "New multifamily buildings coming online have eased competitive pressure in many markets, but in New York City construction just simply can't keep up with demand," Lee said in a statement. The median U.S. rent rose to $1,987 in March, up 0.8% from a year ago, according to Rent.com. Rent has increased partly because of strong demand from millennials and Gen Z adults who have been squeezed out of the housing market, Zillow's analysis shows. Many Americans still opt to rent because it's cheaper than owning a home in major U.S. cities, according to an April Bankrate study. Rent outpacing wage growth means that many Americans are using an even larger portion of their paycheck for shelter, and often skimping on other necessities like child care, groceries or saving for a down payment on a home. Rising rent, which has helped fuel homelessness across the nation, has forced millions of Americans into spending more than the recommended 30% of their monthly income on housing. Rent increases have also played a major role in preventing inflation from falling, according to the latest consumer price index data. For now, the housing market's affordability crisis is a major thorn in the side of Fed Chair Jerome Powell, who continues to remain optimistic that rents will eventually come down. "I am confident that as long as market rents remain low, this is going to show up in measured inflation, assuming that market rents do remain low," Powell said last week during a press conference. "What will be the exact timing of it? We now think significantly longer than we thought at the beginning."
Street League Skateboarding (SLS) and Jones Soda Sign Multi-Year Partnership to Champion Action Sports and Amplify Innovative Spirit of SLS Events - Jones Soda (OTC:JSDA) 2024-05-08 22:36:00+00:00 - Loading... Loading... World's Largest Competitive Skateboarding League and Leading Craft Soda Brand to Collaborate Across In-Venue, Content, and Athlete Activations, with Jones Soda to Serve as Official Sponsor of All-New"SLS Futures" Youth Program LAS VEGAS, May 8, 2024 /PRNewswire/ -- Street League Skateboarding (SLS) and Jones Soda Co. today announced a multi-year partnership to champion current and future generations of action sports. Jones Soda., a longtime supporter of skateboarding and other action sports, will now join forces with the world's largest competitive skateboarding league to amplify the SLS community and innovative spirit of SLS events. The partnership will feature an integration of the Jones Soda Co. product and the brand's own action sports heritage into SLS venues, SLS athlete activations, content, and branding throughout the 2024 and 2025 SLS seasons. Through the partnership, Jones will also serve as the official sponsor of SLS Futures, the league's all-new youth development program. "At Thrill One, we're excited to partner with Jones Soda, a brand with a deep, historical commitment to action sports and consumers," said Matt Cohn, CEO of Thrill One Sports & Entertainment, the parent company of SLS. "Their innovative approach to fan engagement, capturing the spirit of early social media through their iconic labels, showcases their status as pioneers in connecting with audiences. Together, we look forward to building on this existing loyalty, celebrating and developing the next generation of skateboarders, and enhancing our shared experience with fans worldwide." Jones Soda, the original craft soda known for its great taste, unconventional flavors, and iconic brand, has blazed trails in the beverage industry for more than two decades with its pure cane sugar formulation, cult fan following, and ultra creative labels. The brand is available at top retail outlets across the United States and Canada as well as via the Jones online store. In 2022, Jones became the first non-alcoholic carbonated beverage brand to crossover to cannabis and HD9 with Mary Jones. Mary Jones features the same formulation as mainline Jones, adapted for cannabis and HD9, along with edibles and more products to come. Mary Jones HD9 is carried across the country at retail stores as well as Mary Jones' online store, while its cannabis-infused products are carried in hundreds of dispensaries in California and Washington, including its award-winning Berry Lemonade, Root Beer and more. Jones' beverages will be featured across the calendar of SLS events in 2024 and 2025 beginning with the league's upcoming SLS Apex on May 25, providing fans the opportunity to enjoy an exciting array of craft sodas as the world's best skateboarders compete at the highest levels in search of the SLS Super Crown title. SLS athletes and brand influencers will also be given the opportunity to engage with Jones Soda Co. as the league's latest brand partner, further building on the shared community-first spirit of SLS and Jones. "The innovative spirit of the action sports community has always resonated with Jones and our values and brand, a shared passion and lifestyle that has been a driving foundation for our work together" said David Knight, CEO of Jones Soda. "Thrill One captures this with its top-tier events and talent. We're thrilled to be involved with the new Youth program to inspire and support the next generation of skaters. We look forward to fans enjoying our brands all season long." The partnership comes on the heels of SLS's highly successful 2023 season, in which the series finals, the 2023 SLS Super Crown World Championship in São Paulo Brazil, garnered over 15 million views over the course of its weekend event. The accomplishment not only underscored SLS's global influence but also showcased the league's widespread popularity and prominence within the world of competitive skateboarding. Now, well into the 2024 season, SLS has established itself among the fastest-growing sports properties in the world, garnering a 128% increase in impressions, 153% growth in interactions and 349% growth in followers across its social media platforms year-over-year to date. Similarly, broadcast viewership on the league's latest SLS San Diego Finals in April 2024 achieved 75% higher viewership than the SLS Chicago Finals in April 2023, representing just under one year of growth for the company and its viral, loyal following. As part of its commitment to growing community and engagement in skateboarding, Jones Soda Co. will also take a leading sponsorship role this summer in SLS Futures, Street League Skateboarding's youth program aimed at developing the next generation of SLS Champions. SLS Futures will be a ten-week program at famed action sports camp Woodward, where the top 20 skateboarders each week–up to 10 men and 10 women–will compete to win a free week at camp. The youth program will culminate with the SLS Futures Camper Final from August 11-17, with both the men's and women's youth winners receiving an all-expenses-paid trip to a US SLS event and a VIP experience in 2025, showcasing the best of skateboarding talent. For more information, please visit streetleague.com, follow on Instagram via @jonessodaco and @sls, or follow on X via @jonessodaco and @StreetLeague. About Street League Skateboarding (SLS) Since its inception in 2010, Street League Skateboarding (SLS) has propelled street skateboarding from a collection of independent standalone events to a renowned global series. As pioneers of street skateboarding's premium qualification system and competition format, SLS offers an amateur-to-professional pathway and creates thrilling live events across the globe. The SLS Championship Tour is recognized as the world's premier professional street skateboarding competition. Events take place on custom-built, one-of-a-kind, SLS-certified plazas in major cities around the world, with the best in the sport competing for the highest stakes. For more information, visit StreetLeague.com. About Jones Soda Co. Loading... Loading... Jones Soda Co.® JSDAJSDA is a leading craft soda manufacturer with a subsidiary dedicated to cannabis products. The company markets and distributes best tasting premium craft sodas under the Jones® Soda brand, and a variety of cannabis products under the Mary Jones brand. Jones' mainstream soda line is sold across North America in glass bottles, cans and on fountain and slush through traditional beverage outlets, restaurants, and alternative accounts. The company is headquartered in Seattle, Washington. For more information, visit www.jonessoda.com, www.myjones.com, or https://gomaryjones.com Media Contact: Thrill One Sports & Entertainment: Ethos Group ThrillOne@EthosGroup.io Jones Soda Co.: Jill Schmidt JSPR 847-921-1295 Jill@jillschmidtpr.com SOURCE Jones Soda
Hyundai's finance unit illegally seized service members' vehicles, feds allege 2024-05-08 22:34:00+00:00 - Hyundai and Kia's American financing arm repossessed more than two dozen vehicles leased by U.S. military service members without first getting court orders, as legally required, federal prosecutors alleged on Wednesday. Hyundai Capital America, a wholly-owned subsidiary of Hyundai Motor America and Kia America, violated the Servicemembers Civil Relief Act between 2015 and 2023 by reclaiming 26 vehicles owned by service members who began paying off their loans before starting active duty, according to a lawsuit filed by the Department of Justice in federal court in Los Angeles. In 2017, for instance, Hyundai Capital America seized and sold a a three-year-old Hyundai Elantra belonging to Navy Airman Jessica Johnson after determining that she was on active duty but "not deployed," according to legal documents. Johnson still owed $13,769 on the car, and the company realized in 2020 it should not have repossessed the vehicle, according to the complaint. Irvine, Calif.-based Hyundai Capital America did not immediately respond to a request for comment. Members of the Armed Forces should not suffer financial hardship due to their service, according to the Department of Justice, which in recent years has settled similar claims against the finance arms of General Motors, Nissan and Wells Fargo.
Corporate leaders, wealthy donors want a say in Trump's vice presidential pick 2024-05-08 22:15:00+00:00 - Republican presidential candidate and former U.S. President Donald Trump speaks during a campaign event in Freeland, Michigan, U.S. May 1, 2024. Brendan Mcdermid | Reuters Former President Donald Trump and people close to him are fielding calls from corporate leaders and wealth donors eager to share who they think Trump should tap for a running mate, according to people familiar with the matter. Ike Perlmutter, a billionaire and former chairman of Marvel Entertainment , told Trump he thinks the former president should choose Rep. Elise Stefanik, R-N.Y., according to a person briefed on the conversation. Rupert Murdoch has hinted to several friends who move in Trump's social circles that he would be happy with a Republican ticket that included Virginia Gov. Glenn Youngkin, according to sources familiar with the matter. Billionaire Trump backers in the real estate industry have told the former president's advisers that they like Sen. Tim Scott, R-S.C., according to people who have spoken with them. These were other sources for this story were granted anonymity to recount private conversations. Trump has also reportedly been pitched on Scott by Oracle chairman and Republican megadonor Larry Ellison. A spokesman for Fox, which still handles Murdoch's press requests, declined to comment. A spokesman for Perlmutter did not return requests for comment from CNBC. Some VP shortlisters are being promoted primarily by one or two ultra-powerful backers. But others are more broadly popular with lots of Trump's supporters. Florida Republican Sen. Marco Rubio's popularity was on display last weekend at the Four Seasons in Palm Beach, Fla., where wealthy Republicans gathered for the spring meeting of the Republican National Committee. A person attending the retreat said Rubio was clearly the most desirable speaker for donors to pose for "grip and grin" photos with. Other VP contenders at the weekend meeting included Stefanik, Scott and North Dakota Gov. Doug Burgum. The retreat also included a lunch at Mar-a-Lago with Trump. Populists worry donors Opinions are equally strong among some of Trump's wealthiest supporters about who the former president should not choose to join his ticket. Some major donors have expressed hopes that Trump selects a steady hand, who could help implement critical policy tied to their industries, if the Republicans are elected in November. "I would imagine some of Trump's trade agenda is pretty concerning for many donors, and they would hope for someone there to offer a different perspective to a 10% tariff across the board," said Marc Short, a former chief of staff to Trump's Vice President Mike Pence. This may help to explain why some influential Trump donors are especially wary of Ohio Republican Sen. J.D. Vance, according to people close to the Trump campaign. Widely considered a serious contender in the veepstakes, Vance is an Ivy League educated populist who backs higher tariffs and aggressive business regulation. Entrepreneur Vivek Ramaswamy also has influential detractors. "It's not going to be Vivek," said a Republican lobbyist close to top party officials. Opposition to Ramaswamy runs so deep, said the lobbyist, that some donors have effectively threatened to pull their support for the entire party if the former primary contender is Trump's VP pick. For some Republican National Committee aides, the message on Ramaswamy from donors, the lobbyist said, is "Good Lord. If it's him, I'm out." The money race Other donors are more interested how a running mate could help Trump get elected, than in what a potential vice president might bring to the office. Topping the list of desirable qualities, on this front, is a strong track record of fundraising, said a few of the sources. Trump has struggled to keep up with President Joe Biden's fundraising juggernaut. In March, the former president's campaign raised $15 million, while Biden's reelection campaign brought in $43 million, according to Federal Election Commission records. Rubio, Stefanik, Scott and Burgum have all privately been pitched to Trump as top prospects with close ties to top business leaders. Those ties could bolster Trump's fundraising operation if one of them is chosen as his running mate, according to people familiar with the matter. Burgum could even help to self-fund Trump's campaign, just as he did for his own Republican primary run for president. Rubio, Stefanik and Scott also have their own fundraising networks, and could potentially deliver something even more valuable to the Trump fundraising operation: Fresh donors.
Organized retail theft ring that targeted Macy's, other retailers is charged in New York 2024-05-08 22:12:00+00:00 - The Macy's logo is seen at its store in Herald Square in New York City on Jan. 19, 2024. "Through our investigation, we found that Rehana's Cosmetics was well-known to shoplifters, who would willingly bring them stolen items," Bragg said. "We allege that created a motive for shoplifters to steal, and thus that the defendants, we allege, were drivers of crime." Two New Yorkers were charged with possessing more than $1 million in stolen goods and reselling them through their business, Rehana's Cosmetics, a perfume and cosmetics store in Midtown Manhattan, the borough's district attorney Alvin Bragg said at a press conference. A New York beauty store just blocks away from the Empire State Building resold more than $1 million worth of goods that' had been stolen from Macy's and a slew of other retailers, authorities said Wednesday. Manhattan District Attorney Alvin Bragg announced an indictment relating to more than $1 million in stolen goods as part of a retail theft fencing operation. Rehana's Cosmetics, Bragg alleged, claimed to be a "beauty and perfume store," but was instead found to have hundreds of boxes filled with products not typically found at such stores, including designer purses, over-the-counter medications, kitchenware and more. He said the defendants obtained the stolen items from shoplifters for the purpose of reselling. "The root cause we allege here is greed," Bragg said. "They were doing this to make money. This is the motive that is old as time." The charges come as retailers such as Target and Ulta increasingly cite theft as a growing problem at their stores. In March, a monthslong CNBC investigation showed how police broke up an organized retail crime ring that stole millions in cosmetics from Ulta stores and resold them on Amazon . While Bragg was unable to give a specific number when asked how many stores are believed to be engaging in similar operations, he noted that there have been "far too many assaults" on employees at stores that have experienced theft. "By using a multi-pronged prosecution strategy, we can make a lasting dent in retail theft that will keep our store employees safe, cut off the incentives to steal and resell stolen goods and allow our retail sector to thrive," he said. In a statement to CNBC, a Macy's spokesperson said, "We appreciate the work of law enforcement and the Manhattan District Attorney's Office and defer any comments about the case to them." A spokesperson for CVS said the drugstore is "grateful" for the work of the Manhattan District Attorney's office.
TikTok sued the U.S. government to block a ban. Here’s what happens now 2024-05-08 21:48:00+00:00 - TikTok Chief Executive Shou Zi Chew testifies before a House Energy and Commerce Committee hearing entitled "TikTok: How Congress can Safeguard American Data Privacy and Protect Children from Online Harms," as lawmakers scrutinize the Chinese-owned video-sharing app, on Capitol Hill in Washington, March 23, 2023. Evelyn Hockstein | Reuters The future of TikTok is more uncertain than ever after the social media company sued the U.S. government on Tuesday over a law that would force Chinese parent ByteDance to sell the app or face a national ban. President Joe Biden signed legislation in April that gives ByteDance nine months to find a buyer for the popular short-form video app, and a three month extension if a deal is in progress. The Protecting Americans From Foreign Adversary Controlled Applications Act, as it's known, passed with bipartisan support in both chambers of Congress. TikTok argues that the bill violates the First Amendment, and that divestiture is "simply not possible: not commercially, not technologically, not legally," according to the company's legal filing. "For the first time in history, Congress has enacted a law that subjects a single, named speech platform to a permanent, nationwide ban, and bars every American from participating in a unique online community with more than 1 billion people worldwide," the lawsuit said. American lawmakers have long argued that TikTok's foreign ownership poses a national security risk. Former President Donald Trump attempted to ban the platform through an executive order in 2020, laying out the path to a potential ban. That effort failed, but the issue gained resonance as concerns intensified surrounding China's heightened power on the global state. Prior to the passage of the law, TikTok spent more than $2 billion on an initiative called "Project Texas" to better protect U.S. user data from foreign influence. But lawmakers continued pressing to advance legislation anyway. Whether TikTok is successful in its lawsuit, filed in the U.S. Court of Appeals for the D.C. Circuit, largely hinges on how the courts treat the matter. Is it a First Amendment issue or a national security concern? watch now 'One of those truly hard issues' The D.C. Circuit Court could agree to hear the case on an expedited timeframe, meaning a completed opinion could be delivered before a sale is required, said Gus Hurwitz, senior fellow and academic director of the Center for Technology, Innovation & Competition at the University of Pennsylvania Carey Law School. Hurwitz said TikTok and ByteDance will likely request a stay of the law or a preliminary injunction with the court, effectively putting the law on hold until a decision is reached. "If the court does not put such a stay in place, I think that's a really bad sign for TikTok and ByteDance," Hurwitz told CNBC in an interview. "That's a suggestion that the court thinks the law has a very strong chance of being upheld." TikTok could also file another lawsuit on behalf of its users, which Hurwitz said would strengthen the company's First Amendment argument and, if the courts view it under that lens, make it harder for Congress to prevail. "This is one of those truly hard issues on both sides sort of cases," Hurwitz said. Gautam Hans, an associate clinical professor of law at Cornell Law School, said courts take issues of speech suppression very seriously, but are also protective of national security. He said the two priorities infrequently come into conflict. "These situations are relatively rare," Hans said in an interview. "This law is, to my understanding, is pretty unprecedented." It's also different from past attempts to ban TikTok since the bill has bipartisan support, which can influence the courts, Hans said. Regardless of what happens in the circuit court, Hans said there's a real possibility the case ends up getting elevated to the U.S. Supreme Court. "I don't think that this case is going to be easily resolved," Hans said. watch now Weighing a sale ByteDance could simplify the process and agree to divest TikTok so that it's majority owner is outside of China. But the company has reportedly said it would rather close TikTok in the U.S. than sell it. TikTok CEO Shou Chew said in a video on the app, "Make no mistake: This is a ban." Further complicating a potential sale is the issue of TikTok's algorithm, which is they key piece of technology that allows the app to make recommendations to users. China would likely have to approve the transfer of the algorithm, a move that experts don't see happening. "It's kind of like you're selling the house, but you take out all the windows and doors and who's gonna buy it?" Hans said. Still, there are some interested acquirers. Former Treasury Secretary Steven Mnuchin told CNBC's David Faber on Tuesday he is still "very interested" in buying or investing in TikTok. He said that, even without the algorithm, the platform could probably be rebuilt within a year. But he said it would be a much more difficult deal if TikTok were to spend six months of that period litigating. "The best outcome would be if they'd agree to do a deal now and you'd have a year to rebuild the technology, which I think would be a major effort but could be done," Mnuchin said. As of now, TikTok can continue to operate. Hurwitz said the company is showing little inclination to sell or or stop doing business in the U.S. until the last possible minute. "This is going to be a while," he said. WATCH: Here's what to know about TikTok lawsuit
Nikki Haley won nearly 130,000 votes in the Indiana GOP primary. Here's what that means for Trump ahead of the general election. 2024-05-08 21:45:17+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Indiana, which catapulted the political careers of conservatives like former vice presidents Mike Pence and Dan Quayle, is one of the most Republican states in the country. Since 1940, the state has voted for the Republican presidential nominee in every election except for 1964 and 2008. And former President Donald Trump is virtually assured of winning the state this November, as he also did in 2016 and 2020. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. But an interesting thing happened on Tuesday: Trump won the GOP presidential primary, but former UN Ambassador Nikki Haley still won over 20 percent of the vote, despite her March exit from the race. With nearly all precincts reporting their results, Trump earned 461,663 votes (78.3 percent) to Haley's 128,168 votes (21.7 percent). Advertisement Similar to results in states like Virginia and North Carolina, Trump performed strongly in Indiana's rural counties. However, the former president still has a suburban problem, as evidenced by his numbers in the Indianapolis area, with many moderates and GOP-leaning independents continuing to be leery of his 2024 candidacy. Related stories In Marion County — which is consolidated with Indianapolis and is the most populous jurisdiction in the state with more than 965,000 residents — Trump only beat Haley by 30 points (65 percent to 35 percent). That's a significant drop-off from Trump's nearly 57-point statewide margin, and it's especially notable since the former president has been the presumptive nominee for weeks. And in suburban Hamilton County, a longtime GOP stronghold which has seen its Democratic vote share soar in recent years, Trump only won by 32 points (66 percent to 34 percent). Advertisement In the general election, Biden is favored to win Marion, a county that he carried by a 63 percent to 34 percent margin over Trump in 2020. Meanwhile, Hamilton County will be more of a battleground, as Trump only won it by seven points (52 percent to 45 percent) that year. So while Trump might see the Indiana victory as a mere formality ahead of the RNC convention in Milwaukee, the national suburban trend is a glaring sign for the former president in an election where the margins are expected to be close in the key battleground states. While Indiana may be safely Republican in November, suburban voters in Hamilton County will likely vote in a similar manner to other marginally-Republican and swing jurisdictions that will decide the election. Trump has sought to tout his economic message to these sorts of voters, an area where he has found success in poll after poll. But many suburban voters are also concerned about issues like the preservation of democracy, abortion rights, and environmental policy, which all strongly favor Biden. Advertisement And it could give the ex-president a good deal of trouble, especially if he doesn't court Haley's voters ahead of the fall election.
See the campus protests over the last 6 decades that dwarf the Gaza protests in size and disorder 2024-05-08 21:31:02+00:00 - Demonstrations against Israel's war in Gaza have rocked college campuses across the US. Over 2,500 arrests have been made as police and university administrators crack down on protesters. The widespread activism bears similarities to past student movements — but also key differences. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time. Advertisement Waves of protests against the seven-month Israel-Hamas war are roiling college campuses across the US, with students setting up encampments on central quads and taking over academic halls. Law enforcement and university administrators attempted to quell the disorder, shutting down encampments and conducting mass arrests. As of Monday, more than 2,500 people have been arrested or detained in connection to the protests, according to data collected by The New York Times. The recent spread of student activism has led some to compare it to major student movements over the Vietnam War and South African apartheid. Advertisement While the recent demonstrations are still ongoing after several weeks, they are still far from the scale and disorder of movements in recent decades.
Airbnb shares slide on lower revenue forecast despite a doubling of net income 2024-05-08 21:30:59+00:00 - SAN FRANCISCO (AP) — Airbnb’s profit more than doubled last quarter, but management’s disappointing revenue forecast sparked a roughly 7% drop in its stock in after-market trading Wednesday. The San Francisco-based vacation rental app said its net income rose to $264 million in the first quarter from $117 million a year earlier, on revenue that rose 18% to $2.14 billion. Earnings per share in the quarter jumped to 41 cents; analysts surveyed by FactSet expected 23 cents. Earnings growth was partly driven by a shift in the Easter holiday, which came during the first quarter this year versus the second quarter in 2023. Easter is a significant travel holiday. The quarter also included the Feb. 29 “leap day,” which added an extra day of business to the first quarter compared to a year earlier. Airbnb projected revenue in the second quarter between $2.68 billion and $2.74 billion. That fell short of Wall Street expectations, partly because of unfavorable exchange rates and partly because of Easter falling earlier.
Hy-Vee and Schnucks recall cream cheese spreads due to salmonella risk 2024-05-08 21:26:00+00:00 - Tips on how to avoid food poisoning Tips on how to avoid food poisoning Tips on how to avoid food poisoning Three regional grocers — Hornbacher's, Hy-Vee and Schnuck Markets — are collectively recalling a variety of cream cheese spreads across the Midwest because the products may be contaminated with salmonella. Hy-Vee is recalling two varieties of Hy-Vee Cream Cheese Spread, as well as bulk-packaged Cookies & Cream Mix, the West Des Moines, Iowa-based retailer said Monday in a statement posted by the Food and Drug Administration. Sold under Hy-Vee's private label and bulk packaging programs, the recalled products were sold at more than 280 retail stores in eight Midwestern states: Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin. Salmonella can cause serious and sometimes fatal infections in the young, frail or elderly. Symptoms can include fever, diarrhea, nausea, vomiting and abdominal pain. Image of recalled product. Food and Drug Administration People who purchased the recalled products should throw them out or return for a refund, Hy-Vee said. Separately, St. Louis-based Schnuck Markets is recalling three cheese spreads for possible salmonella contamination: Schnucks Whip Cream Spread, UPC 4131858005, with a best-by-date of August 8, 2024. Schnucks Strawberry Spread, UPC 4131858007, with a best-by-date of Sept. 8, 2024. Schnucks Cream Cheese Spread, UPC 4131858023, with a best-by-date of Oct. 8, 2024. The recalled products should be returned for a refund or exchange, according to the retailer, which operates 115 stores in four states, including Illinois, Indiana, Missouri and Wisconsin. Image of recalled product. Food and Drug Administration Hy-Vee confirmed the company and Schnucks used the same cream cheese supplier, which a spokesperson identified as Schreiber Foods of Green Bay, Wis. Schnucks was notified by a vendor, Itasca, Ill.-based Topco Associates, that the products were being recalled by Schreiber Foods, a spokesperson for Schnucks told CBS News. Schreiber Foods had been alerted by a supplier that a why protein concentrate used in the recalled products might be tainted with salmonella, the Schnucks spokesperson said. Moorhead, Minn.-based Hornbacher's, a supermarket chain that operates eight stores in Minnesota and North Dakota, also cited Schreiber in its Tuesday recall of Essential Everyday Garden Vegetable Cream Cheese Spread, with the recalled product containing the UPC code 41303006252 and a best-by-date of Sept. 1, 2024. Schreiber Foods did not immediately respond to a request for comment.