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Chinese Stocks Stage Impressive Rebound 2024-05-06 11:45:00+00:00 - Key Points Confidence and capital return to Chinese stocks after years of market losses, geopolitical tensions, and a property crisis. China's economy experienced a notable growth of 5.3% in the first quarter of 2024, signaling a positive trajectory and a potential turnaround. Heavyweight Chinese stocks listed in the United State, such as JD, BABA, and BIDU, have rebounded recently and outperformed. After consecutive years of market losses in China, geopolitical tensions, and a lingering property crisis, many U.S. asset managers are now showing confidence in Chinese stocks, highlighting potential opportunities. In March, billionaire investor Ray Dalio suggested that China presents an opportune moment for investment due to its affordability. Heavyweight Chinese stocks listed on the U.S. exchanges recently hit bottom and surged higher, presenting a promising risk-reward proposition. Once deemed uninvestable due to economic challenges, China's stock market has experienced a notable resurgence, with the MSCI China Index surging 20% from its bear market lows. Get alerts: Sign Up Factors contributing to this turnaround include Beijing's efforts to revitalize the economy by restricting short-selling and promoting new real estate strategies. Despite earlier concerns about China's economic outlook, foreign investors are returning to their markets, buoyed by a 5.3% economic growth in the first quarter of 2024. With this backdrop, it's worth exploring whether it’s time to buy oversold Chinese stocks that have recently rebounded, such as Alibaba Group NYSE: BABA, Baidu NASDAQ: BIDU, and JD.com NASDAQ: JD. Alibaba Group Holding Limited Alibaba Group Today BABA Alibaba Group $81.56 +0.23 (+0.28%) 52-Week Range $66.63 ▼ $102.50 Dividend Yield 1.20% P/E Ratio 15.05 Price Target $112.91 Add to Watchlist However, the stock has recently broken its downtrend and turned positive on the year thanks to its 13.05% surge higher this month. Notably, the stock has reclaimed all major moving averages, including its 200-day Simple Moving Average (SMA). Despite its recent rebound, the stock is 20.65% below its 52-week high and has a modest P/E of 14.81. Analysts are bullish on the name, with a Moderate Buy rating and consensus price target that forecasts an impressive 38.8% upside for the eCommerce giant. Baidu, Inc. Baidu Today BIDU Baidu $113.33 -0.08 (-0.07%) 52-Week Range $94.25 ▼ $156.98 P/E Ratio 14.68 Price Target $169.50 Add to Watchlist Like BABA, shares of Baidu recently broke its major downtrend thanks to an impressive 12.8% surge higher last week. Baidu, which is almost 28% below its 52-week high, has an attractive P/E of 14.5 and is a favorite among analysts. Based on 15 ratings, the stock has a consensus Buy rating and consensus price target of $171.64, which forecasts a whopping 51.3% potential upside for the online search giant. JD.com, Inc. JD.com Today JD JD.com $32.71 -0.16 (-0.49%) 52-Week Range $20.82 ▼ $41.95 Dividend Yield 2.26% P/E Ratio 15.36 Price Target $35.60 Add to Watchlist Shares of JD have not only outperformed the overall market recently but have also been one of the top-performing Chinese stocks in recent months, surging by over 50% in the quarter so far. The company, which has a $51.8 billion market capitalization, offers a 2.25% dividend yield, an attractive P/E of 15.43, and projected earnings growth of 13.33% for the full year. Like the stocks mentioned above, JD is a favorite among analysts. The stock has a Moderate Buy rating and consensus price target predicting over 8% upside. → He Is Giving Away Bitcoin (From Crypto Swap Profits) (Ad)
Coca-Cola Stock Analysis: Key Insights and Trends 2024-05-06 11:41:00+00:00 - Key Points Coca-Cola is the most well-known soft drink brand in the world despite having less revenue than PepsiCo. The company's signature Coke products are complemented by brands like Sprite, Fanta, Minute Maid and Vitamin Water. Coca-Cola maintained its margins despite inflationary pressures but must battle changing consumer and regulatory preferences moving forward. 5 stocks we like better than Barclays Super Bowl commercials are famous for pulling out all the stops to be memorable. Still, some companies have timeless classics that don’t need rebranding: the Budweiser Clydesdales, the E*TRADE babies and, of course, the Coca-Cola polar bears. Few companies have more name recognition than The Coca-Cola Company NYSE: KO, but the long-time Dow Jones component is much more than soda and nostalgic commercials. Coca-Cola has an extensive portfolio of brands and sells products in more than 200 countries, and the company’s stock has been paying dividends for more than 100 years. With multiple product lines, industry dominance, and a century of success behind it, is Coca-Cola stock a must-own for your portfolio? In this analysis, we’ll look at Coca-Cola’s recent financial performance, its history as a Dividend King, and the risks and opportunities facing the company in 2024. Get Barclays alerts: Sign Up Coca-Cola's Financial Performance Coca-Cola Today KO Coca-Cola $62.35 +0.18 (+0.29%) 52-Week Range $51.55 ▼ $64.25 Dividend Yield 3.11% P/E Ratio 24.94 Price Target $68.27 Add to Watchlist Revenue Growth and Profitability Coca-Cola stock performance was slow following the COVID-19 pandemic, dropping more than 30% between February and April 2020. The stock didn’t reclaim its previous high until January 2022 and failed to join the recent bull market run. Looking at the 5-year chart, Coca-Cola stock price has gone nowhere since February 2020, and dividends have been the only source of profit for investors. Is this lack of stock price growth justified by the earnings? Coca-Cola is a consumer staples stock, so outsized revenue growth isn’t something investors should expect. During the height of the pandemic, Coca-Cola saw a few quarters of negative revenue growth, but sales rebounded midway through 2021. Revenue has increased for 11 consecutive quarters, although growth is slowing. Here are Coca-Cola’s annual revenue figures for the last 3 years. Year Revenue YoY Rev Growth Rate 2023 $45.75 billion 6.4% 2022 Ad Crypto Swap Profits Did You Get Your Free Bitcoin Yet? And my special guest is willing to give you $10 in Bitcoin (BTC) if you take it seriously. Right now is a very important time to pay attention to what we are doing and what is happening. If you wait... it will be too late. This week we are holding several workshops and if you attend and pay attention my special guest is going to send you $10 in Bitcoin. >> Register right here $40 billion 11.3% 2021 $38.7 billion 17.1% While growth is slowing, Coca-Cola’s revenue is still increasing faster annually than its main competitor, PepsiCo Inc. NASDAQ: PEP. Despite high rates and persistent inflation, Coca-Cola has kept margins steady during the last few years. Net margins, which measure how much revenue is retained as profit after expenses, have been between 21% and 27% every quarter since the start of 2020. During the same time frame, rival PepsiCo’s margins fluctuated between 8% and 12%. Earnings Per Share (EPS) Trends Coca-Cola is on a 10-quarter streak of top and bottom-line earnings beats, surpassing analyst estimates on earnings and revenue. However, despite consistently beating analyst expectations, Coca-Cola's earnings per share growth has been limited. Year Earnings Per Share EPS Growth Rate 2023 $2.47 12.8% 2022 $2.19 (-6.7%) 2021 $2.25 25.7% EPS figures have fluctuated, with 2 significant jumps sandwiching a nearly 7% decline in 2022. For 2024, growth of 7.1% is expected, as projections indicate a year-end figure of $3.01. Sentiment is mixed as unsteady EPS growth in a dividend stock can scare off risk-averse investors, but institutions have been net buyers of KO shares over the last 12 months. Coca-Cola Stock Investment Opportunities Why do investors like Coca-Cola investment opportunities? Primarily for a strong and consistent dividend and brand recognition across various product lines. While large-cap consumer staples stocks don’t often produce life-changing returns, Coca-Cola still has innovative expansion plans. Dividend History and Yields Coca-Cola Dividend Payments Dividend Yield 3.12% Annual Dividend $1.94 Dividend Increase Track Record 63 Years Annualized 3-Year Dividend Growth 3.91% Dividend Payout Ratio 77.60% Next Dividend Payment Jul. 1 See Full Details Consumers might know Coca-Cola's distinctive logo and polar bear commercials, but investors see the company for its long and lucrative dividend history. Coca-Cola has been paying dividends to investors since before the Great Depression, but the company has entered rarified air as a Dividend King . Dividend Kings are stocks that have raised dividend payouts for at least 50 consecutive years, and Coca-Cola has now raised its payout for 63 straight years following the February 2024 increase. Coca-Cola dividends currently yield 3.14%, with an annualized growth rate of 3.9% over the last 3 years. The payout rate (the percentage of earnings going toward dividend payments) is on the high side at 78.2%, higher than Pepsi’s 76% payout rate, although Pepsi has a lower yield and 11 fewer years of payout increases. Growth Potential and Innovation If you’re looking for solid growth and market-beating returns, consumer staples stocks like Coca-Cola will likely leave you disappointed. The company uses a hefty chunk of its profits to pay dividends to shareholders, and growth at all costs isn’t part of the strategy. However, this doesn’t mean that Coca-Cola is a dinosaur. The company has been a beverage innovator for decades, developing new product lines and establishing relationships with firms like Monster Beverage Corp. NASDAQ: MNST. In a recent investor presentation, the company highlighted an opportunity in emerging markets where its brand recognition and impact aren’t as strong. The company specifically highlighted Latin America as an area where growth can be harnessed. Coca-Cola's Market Position and Competition Coke vs Pepsi has been one of the oldest product rivalries in American history, but how does Coca-Cola stack up as a company compared to its business competition? Here’s where the company stands against its peers. Coca-Cola's Market Share and Brand Strength Coca-Cola is one of the dominant players in a competitive industry, with brands like Sprite, Fanta, Minute Maid, Fairlife and SmartWater under its umbrella. Coca-Cola also partners with well-known brands like Powerade, Vitamin Water, Fresca and Schweppe’s. The company’s focus is divided into 4 segments: the Coca-Cola brand, Sprite/Fanta brands, juices/dairy and sports/water. With such a wide range of popular beverages, Coca-Cola is the world's most recognizable soft drink brand, even more so than PepsiCo, despite earning less revenue. Competition and Industry Trends Coca-Cola’s two main competitors in the soft drink industry are PepsiCo and Keurig Dr Pepper Inc. NASDAQ: KDP. Pepsi and Coke have spent decades battling for soft drink supremacy, and both companies are amongst the largest in the world by market cap. PepsiCo earns more total revenue thanks to its food offerings like Frito Lay and Doritos. Still, Coca-Cola has a higher market share in the beverage industry, pays a higher dividend yield and has higher margins on its sales. Keurig Dr Pepper is a smaller competitor in the beverage space, with more of a focus on coffee and juices like Snapple. KDP’s market cap is less than ¼ that of Coca-Cola’s, makes only about ⅓ of the revenue and pays a lower dividend yield. Despite an increasing consumer focus on healthier (i.e., less sugar) drink options, Coca-Cola remains the top player in the soft drink industry in terms of brand recognition and profitability. Coca-Cola Stock Risks and Challenges One benefit of making soft drinks is the relative stability of the demand. Thanks to strong pricing power, Coca-Cola was able to weather the inflationary storm with its margins still intact. Customers were willing to accept price increases on their favorite drinks so Coca-Cola could keep revenue growth moving without sacrificing profitability. What other challenges could KO shareholders face in 2024? Here are a few factors that could influence the stock this year. Regulatory and Environmental Challenges Coca-Cola has made sustainability a core goal. According to the company’s investor presentation following Q4, Coca-Cola increased renewable energy usage to 21% in 2022 (up from 12% in 2021) and aims to reduce total emissions by 25% by 2030. Additionally, the company seeks to increase recycled package usage to 50% and replenish 100% of the water resources it absorbs in production. Despite these initiatives, regulatory and environmental challenges could still impact KO shares. Sugary drinks have become a target of health-conscious legislators, and Coca-Cola has been criticized for the excessive plastic waste it produces. Stiffer laws on sugar content and renewable packaging could influence the company’s costs and production. Economic Factors and Consumer Preferences Coca-Cola was an inflationary success story as the company navigated increasing pressures with sacrificing margins. However, with inflation lingering like an unwanted house guest, Coca-Cola must still be mindful of input costs. Consumer staples stocks are often considered ‘recession-proof,’ but changing consumer preferences could leave Coke products more vulnerable than usual. Sugary drinks like soda aren’t exactly high on the list of health-conscious shoppers. Beverages with excessive sugar content have been linked to diabetes, dental issues and obesity. The company has been investing in healthier alternatives like Vitamin Water and Powerade to offset these changing preferences. Still, soft drink consumption has steadily declined in the United States since 2010. Expert Recommendations and Stock Outlook Are you thinking of investing in Coca-Cola shares? Here’s how analysts view the company and project the long-term Coca-Cola stock outlook. Analyst Ratings and Recommendations MarketBeat is currently tracking 7 Coca-Cola analyst ratings, down from 12 last year. Of the 7 still covering the stock, 6 have a Buy rating, and 1 carries a Hold rating. A year ago, 9 analysts rated Coca-Cola a Buy and 3 were a Hold. The consensus view of Coca-Cola stock is ‘Moderate Buy,’ with slightly more upside than the rest of the consumer staples sector but below the growth projections of the S&P 500 as a whole. Investors looking for consistent income through dividend growth will prefer stocks like KO, but those looking for outsized returns will likely seek out different sectors and industries. Long-Term Outlook and Price Targets The current consensus price target is $67.22, representing an 8.8% upside from the current market price. Since the start of 2024, 3 different analysts have altered price targets. Barclays and CitiGroup both boosted their Coca-Cola price targets to $68 (from $67 and $66, respectively) while leaving their Buy rating unchanged. JPMorgan Chase Co. also rated the stock a Buy but lowered its price target from $66 to $65. Coca-Cola's earnings are expected to grow in the next year, and the company has shown resilience in maintaining its margins in the face of rising inflation. However, consumer trends continue to move away from sugary soft drinks, and the company will need to continue investing in new product lines (or altering existing ones) to keep up with these changes. Before you consider Barclays, 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 Barclays wasn't on the list. While Barclays currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
3 Metal Stocks Setting Up for Double-Digit Growth 2024-05-06 11:30:00+00:00 - Key Points Despite recent disappointing economic data, the metals sector is quickly becoming a breakout story. Regarding stock selection, investors should keep double-digit EPS growth front and center. Three stocks stand out with their bullish price action and EPS projections justifying their premium valuations. 5 stocks we like better than Alcoa The U.S. economy is pivoting into a new path for the year. After briefly jumping into its first expansionary reading in more than a year and a half, the ISM manufacturing PMI index just fell back into contraction for April. However, there is a strong thesis behind a continued expansion in manufacturing — instead of services — for the rest of 2024. Among the few industries that investors could look into are metals, specifically primary metals and nonmetallic products used in the construction sector. When drilling into these industries, investors will have access to dozens, if not hundreds, of stocks, so here’s a quick selection filter. Get Alcoa alerts: Sign Up Based on slowing U.S. Gross Domestic Product (GDP) figures and a contracting set of PMIs, investors should prioritize stocks expecting double-digit earnings per share (EPS) growth. Names like Alcoa Co. NYSE: AA, ATI Inc. NYSE: ATI, and ArcelorMittal NYSE: MT fit this criteria. A Manufacturing Breakout Analysts at Goldman Sachs projected a breakout in the U.S. manufacturing sector this year, according to the bank’s 2024 macro outlook report. But this breakout is contingent on the Federal Reserve (the Fed) cutting interest rates this year. Lower rates mean a weaker dollar, making American exports more attractive to foreign nations. February’s PMI reported a 6.4% jump in export orders for the United States. Now, manufacturers need to ramp up production to fulfill these orders, which is why economic value and EPS could grow for the sector. With recent contractions, the market is waiting for a more precise direction, though some signs remain as clear as ever. In April’s PMI, the commodities that were up in price were mainly aluminum and steel products. This is why investors should look to employment increases and depleting inventories, which indicate current demand and anticipated future demand as hiring sprees prepare the industry for further production. Both requirements are met by the fields under which these chosen stocks operate. Alcoa’s Customers Are Key Alcoa Today AA Alcoa $37.32 +0.55 (+1.50%) 52-Week Range $23.07 ▼ $38.20 Dividend Yield 1.07% Price Target $33.54 Add to Watchlist Most of the company’s sales come from the aerospace industry , which is dominated by. Boeing's production issues and recent incidents dampened Alcoa’s price target to $33.5 a share , calling for an 8.8% downside. However, with its $222.4 price target (23.7% upside) and more than 100% expected EPS growth this year, Boeing could be just around the corner from a potential breakout. Those bold enough to realize what Boeing’s comeback could mean for Alcoa’s demand and what it could do for the stock boldly projected up to 980% EPS growth for 2024. Those at Jefferies Financial Group boosted Alcoa’s price target to $48 a share, or 31% higher than today’s prices. Tailwinds Favor ATI’s Financials ATI Today ATI ATI $59.08 +0.92 (+1.58%) 52-Week Range $34.10 ▼ $61.58 P/E Ratio 23.73 Price Target $59.17 Add to Watchlist Since its products typically end up in the automotive and construction industries, ATI’s future earnings have just as much hype around them. With a projected 23.8% EPS growth for the year, markets are comfortably bidding up this stock against its peers. Compared to the steel industry, ATI’s 23.4x P/E valuation commands a premium to the average 11.0x valuation today. Being 112% more expensive must carry a justifiable explanation, and it’s all within the same PMI report. Respondents in the primary metals sector said that automobile builds continue at an average production rate but not near maximum outputs. This means automotive production could see much better production rates soon, calling on ATI’s steel products. This fundamental outlook may be one reason the stock has been bid up to trade at 94% of its 52-week high, giving investors the momentum they need to justify a potential leg higher. ArcelorMittal’s Buffett Moment ArcelorMittal Today MT ArcelorMittal $26.01 -0.21 (-0.80%) 52-Week Range $21.30 ▼ $29.15 Dividend Yield 1.42% P/E Ratio 29.22 Price Target $31.00 Add to Watchlist After buying homebuilding stocks like, Warren Buffett demonstrated his bullish view about a potential U.S. residential construction breakout. What better way to play lateral value creation than looking into appliances and construction? Because ArcelorMittal serves the appliances manufacturing supply chain and construction industries, analysts are projecting up to 29.2% EPS growth for that stock this year. More than that, a consensus price target of $31 a share means analysts now see an 18.2% upside from where the stock trades today. A 29.4x P/E also gives investors that premium characteristic over the steel industry’s 11.0x valuation. Far from a dip, this stock trades at 90% of its 52-week high. Usually, stocks have an excellent reason to trade near 52-week highs and command a higher P/E multiple with them, and double-digit EPS growth to beat an uncertain economy is one of those reasons. Before you consider Alcoa, 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 Alcoa wasn't on the list. While Alcoa currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
First these Army families lost their loved ones. Then the man assigned to help them took their money. 2024-05-06 10:30:00+00:00 - As she mourned the sudden death of her son, a 26-year-old Army sergeant felled by a heart condition, Sharon Hartz learned some surprising news: She would receive a death benefit and life insurance totaling half a million dollars. But she said the Army’s casualty assistance officer, who had helped her with the funeral arrangements, told her she first had to meet with an Army financial counselor. “[He] insisted that we be educated on the finances so they were properly handled,” she said. Sgt. Thomas F. Anastasio died because of a heart condition while on active duty. His death benefits went to his mother, Sharon Hartz. Courtesy Sharon Hartz Hartz and the officer drove to Fort Dix, where she first sat down with Caz Craffy, an Army reservist whose 9-to-5 civilian job was offering advice about money to Army families. Craffy was “very charismatic,” Hartz said. “Very, very friendly, very welcoming.” That turned out to be a façade. Craffy was a con man, who has now pleaded guilty to bilking Hartz and dozens of other Gold Star families — the survivors of service members who died on active duty — out of millions of dollars. “I’ve lost a little over $200,000,” she said. “Now I’m up in the air. I can’t afford to retire. I feel taken advantage of. I’m embarrassed. I feel like I let my son down, because, you know, this was his way of taking care of me and my children. So it’s devastating.” Prosecutors say Craffy was only supposed to be giving families generic financial guidance. Instead, he also had a second civilian job as an investment manager and handled their investments in violation of Army rules. Court records say he convinced Hartz and other Gold Star relatives to hand him their money — then racked up huge commissions even as he made unwise investments that plummeted in value. Natasha Cruz-Bevard signed $500,000 over to Craffy after she lost her husband, staff sergeant and Iraq combat veteran Rodney Bevard, to suicide. “When they explained all that to me and I opened up my statements, I saw that in a short amount of time I lost a lot of money, close to $90,000 in just commissions alone,” she said. “I’ve lost like $260,000 overall.” Caz Craffy bilked Gold Star families out of millions, according to prosecutors. LinkedIn Cruz-Bevard said she told Craffy she wanted to invest very conservatively, but she learned later he had listed her as seeking an “aggressive” risk profile. Cruz-Bevard and Hartz said Craffy appeared to have targeted families who were not sophisticated about investments. And he convinced them that he was not just their financial adviser, he was their friend. “If I said my daughter was looking for a car, he would say, ‘Oh, I know somebody in the car business. You know, don’t forget, you’re part of the military. We have a big circle of friends, blah, blah, blah,’” Hartz said. “And he would say, ‘Don’t make any moves without checking with me first.’… He was grooming me, basically.” Prosecutors say he would also urge them not to look at their statements and assure them that any high commissions or losses would be made up by big gains later. “I don’t know how the man sleeps at night,” Hartz said. “He has a wife and children. How could he just be so blatantly greedy without any guilt?” Craffy bought a $2.1 million home in Colts Neck, N.J., in 2022. It is now in foreclosure. Google Maps Hartz said Craffy invited her to his “lavish” wedding, though she didn’t attend. Public records show Craffy bought a $2.1 million house in 2022 on Country Club Lane in Colts Neck, New Jersey. It’s now in foreclosure, and he is facing 10 years in prison. “Those who target and steal from the families of fallen American service members will be held accountable for their crimes,” Attorney General Merrick Garland said in a statement when the plea was announced. But many victims say accountability in this case should extend beyond one man and that the Army still has questions to answer. “I do believe that there’s blood on the hands of the Army here,” said Natalie Khawam, who is representing Hartz, Cruz-Bevard and other victims in an attempt to get the Army to explain how Craffy was able to break the rules for so long without detection. They are contemplating a lawsuit. Khawam said Army casualty assistance officers consistently steered families to Craffy. “The Army introduced this man to all these vulnerable families,” she said. “They were at their lowest, they lost their loved one, they lost their child. And here, the only person that they believed was going to take care of them, which was the Army … sends in a person that just basically took advantage of them.” In a statement to NBC News, the Army said it “conducted a thorough criminal investigation and found this to be an isolated case.” The Army said it remains dedicated to caring for families of fallen soldiers. Hartz said she assumed Craffy could be trusted, given that he was an Army employee. “The military took care of us after my son’s death — it was like they were with us every step of the way,” she said. “And everything was very formal or protocol was met. I just assumed this was part of the benefit.” Natasha Cruz-Bevard holds a photo of her husband, Staff Sgt. Rodney C. Bevard, at her home in New Windsor, N.Y. After his death, she says, an Army financial counselor bilked her out of hundreds of thousands of dollars. Jeenah Moon for The Washington Post via Getty Images Cruz-Bevard said no one from the Army has contacted her, other than the criminal investigator who brought the case. “He worked for the Army. They should be held accountable as well. I know these are his acts, but you should have checked on these families. You should have confirmed what type of interaction, what type of conversations were happening, especially with this amount of money.” She added, “We are Gold Star families, and we need to make sure that this doesn’t happen again to future Gold Star families. So I really feel that the Army should really step up and be held accountable for this.”
Brinker International Heats Up on Spicy Earnings Beat and Raise 2024-05-06 10:20:00+00:00 - Key Points Brinker International operates over 1,600 Chili’s Grill and Bar and Maggiano’s Little Italy restaurants. Brinker sponsored NASCAR driver Corey LaJoi’s car during the Daytona 500 with every general manager’s name on the hood. Brinker beats fiscal Q3 2024 EPS by 9 cents and raised full-year 2024 EPS forecasts for $3.80 to $4.00, beating $3.69 consensus estimates. 5 stocks we like better than Brinker International Shares of restaurant operator Brinker International Inc. NYSE: EAT surged to 52-week highs after reporting a solid fiscal Q3 2024 earnings report. The consumer discretionary sector company operates Chili's Grill and Bar and Maggiano's Little Italy restaurants under a franchise and company-owned model. It's Just Wings is a virtual brand that operates out of 1,000 company-owned Chili's and Maggiano's restaurants. Brinker operates over 1,600 restaurants in the United States, 2 U.S. territories and 27 other countries. Brinker International competes for consumer dollars with Darden Restaurants Inc. NYSE: DRI and Bloomin' Brands Inc. NASDAQ: BLMN. Get Brinker International alerts: Sign Up Daily Ascending Triangle Breakout EAT formed a daily ascending triangle breakout pattern. The ascending trendline formed at $43.37 on April 17, 2024, comprised of higher lows on pullbacks. The upper flat-top trendline resistance formed at $50.40. EAT broke out through the resistance on its stellar earnings report and formed a small gap to test $50.40 before it continued to grind higher to new 52-week highs at $54.78. The daily relative strength index (RSI) bounced above the 70-band. Pullback support levels are at $53.02, $50.40, $46.95 and $44.62. Stellar Results Brinker reported fiscal Q3 2024 EPS of $1.24, beating analyst estimates for $1.15 by 9 cents. Revenues climbed 3.4% YoY to $1.12 billion, matching consensus estimates. Comparable restaurant sales rose 3.3%, with an increase in comparable restaurant sales of 3% for Chili's and 1.7% for Maggiano's. Chili's Performance Chili's sales rose primarily due to favorable comparable restaurant sales driven by increased menu prices that were partially offset by lower traffic. The company purposely decided to deemphasize its virtual brands and unfavorable menu item mix. Company-owned restaurant expenses decreased due to sales leverage, lower delivery fees and to-go supplies and menu pricing. An increase in labor, advertising and various restaurant expenses offset this. Chilli's franchises generated $216.2 million, up from $213.6 million in the year-ago period. Maggiano’s Performance Maggiano's sales rise was attributed to higher menu prices, a favorable menu item mix, and favorable comparative restaurant sales, which were partially offset by lower traffic. Restaurant expenses decreased slightly due to an increase in menu prices offset by increased repair and maintenance costs and miscellaneous restaurant expenses. Upside Guidance Brinker International raised upside guidance for the fiscal full year 2024. Brinker expects full-year EPS between $3.80 to $4.00, beating $3.69 consensus estimates. Prior forecasts called for EPS of $3.45 to $3.70. According to consensus estimates, fiscal full-year 2024 revenues are expected to be between $4.13 and $4.35 billion versus $4.34 billion. Capital expenditures are expected to be between $185 million to $195 million. CEO is Upbeat Brinker CEO Kevin Hochman noted that the business had bounced back from challenging weather-impacting performance. February and March were strong rebound months. Chilli beat industry sales averages by over 7% and traffic by 4% in the quarter. It's a testament to the strategy the company has been implementing for the past two years, notably with February's performance, since the company didn't advertise that month. March has also been an outperformance month. The company effectively left increased media from 2023. Traffic Driving Tailwinds Brinker's traffic-driving initiatives, combined with real operational improvements, have created tailwinds for the business. Its primary KPI dine-in guest experience has been a key focus. Dine-in GWAP dropped to 3.3% in the quarter, which is the lowest it has ever been. Industry-leading managers and hourly turnover have been critical elements to the tailwinds. The company's NASCAR sponsorship of driving Corey LaJoi's car during the Daytona 500 has been a boon for customers and staff. The car has the general manager's name on the car hood. Driving Home Superior Value Brinker International Today EAT Brinker International $57.53 +2.55 (+4.64%) 52-Week Range $28.23 ▼ $58.04 P/E Ratio 17.07 Price Target $46.06 Add to Watchlist Brinker's has improved the menu and proactively addressed the rising costs of dining out. The company launched its new burger, "The Big Smasher," a half-pounder burger with Thousand Island dressing, cheese pickles, lettuce and red onions on a brioche bun. It's $10.99 on the regular menu and available for the 3 For Me for a limited time as part of its Everyday Value platform. Value is a theme that the company has been emphasizing as social media is chock full of consumer frustration over high fast food prices. Chilli's is also eliminating the secret sauce burger from its value menu. Hochman concluded, "The ongoing momentum in our business encourages us that our strategy is working, and the investments we're making are strengthening the core business, setting us up for long-term sustainable growth." Brinker International analyst ratings and price targets are at MarketBeat. Before you consider Brinker International, 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 Brinker International wasn't on the list. While Brinker International currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Eli Lilly Gains on the GLP-1 Weight Loss Phenomenon 2024-05-06 10:15:00+00:00 - Key Points Eli Lilly reported a Q1 2024 EPS rise of 66%, beating analyst expectations by 11 cents, but slightly missed revenue expectations, coming in at $8.77 billion, falling short of $8.94 billion consensus estimates. Eli Lilly raised full-year 2024 EPS and full-year revenue guidance by $2 billion. Eli Lilly broke ground on its new $2.5 billion manufacturing facility in Germany, and its Concord, North Carolina facility expects to produce Wegovy shipments by year's end. 5 stocks we like better than Eli Lilly and Company Eli Lilly and Co. NYSE: LLY reported strong Q1 2024 earnings, causing shares to soar towards all-time highs initially, but a sell-the-news reaction triggered in the following days. The medical sector biopharmaceutical giant continues to gain from the GLP-1 drug weight loss trend that's taken the mainstream by storm. The momentum for GLP-1 drugs shows no sign of slowing down as demand continues to outstrip supply. Analysts were pleasantly surprised when Lilly raised full-year 2024 top and bottom line forecasts, alleviating supply concerns. Eli Lilly competes in the GLP-1 segment against Novo Nordisk A/S NYSE: NVO and Viking Therapeutics Inc. NASDAQ: VKTX. Get Eli Lilly and Company alerts: Sign Up Novo Nordisk Warns of Falling Prices for GLP-1 Drugs A major reason that led to the sell-the-news reaction in Lilly stock stems from the statement by competitor Novo Nordisk that prices are dropping for its Wegovy medication. Novo Nordisk stated in a conference call that its Ozempic and Wegovy prices fell slightly lower in Q1 2024. This was attributed to higher volumes and increasing competition, which will lead to further price cuts this year. That news caused shares of Novo Nordisk and Eli Lilly to fall. Taking Steps to Bolster Capacity Eli Lilly and Company Today LLY Eli Lilly and Company $766.68 +31.71 (+4.31%) 52-Week Range $419.80 ▼ $800.78 Dividend Yield 0.68% P/E Ratio 112.91 Price Target $757.95 Add to Watchlist Demand for its Tirzepatide dual agonist GLP-1/GIP drugs is so scorching hot that they're hard to keep on the shelves. Capacity constraints are the only obstacle. To boost capacity, Lilly just broke ground on a new $2.5 billion manufacturing facility in Germany. It expects its North Carolina site to commence production at year's end. Expanding Indications As if demand wasn't strong enough, Lilly is trying to expand the potential patient base for its GLP-1 drugs by expanding its indications for Zepbound. Mounjaro is only approved for type 2 diabetes. Zepbound is approved for chronic weight management. Since obesity can lead to many other diseases, Zepbound may prove to be beneficial for additional indications. Zepbound is currently undergoing Phase 2 clinical trials for non-alcoholic steatohepatitis (NASH) and Phase 3 trials for obstructive sleep apnea. It's also being studied for slowing the progress of Parkinson's Disease. New GLP-1 data is expected to be ready in 2025. Daily Rectangle LLY formed a daily rectangle pattern. The upper trendline resistance formed at $794.67 on February 16, 2024. It was rejected 5 times. The most recent was the breakout attempt after reporting its Q1 2024 earnings. The lower trendline support sits at the 0.618 Fibonacci (fib) retracement level at $727.70, which has held against 3 breakdown attempts. The daily relative strength index (RSI) has slipped under the 50-band. Pullback support levels are at $727.70, $707.84, $682.50 and $650.60. Robust Q1 2024 Results Lilly reported Q1 2024 EPS of $2.58, beating consensus analyst estimates by 11 cents. Revenues rose 26% YoY to $8.77 billion, falling short of $8.94 billion consensus estimates. Top Drug Sellers Revenues were driven by Mounjaro, Zepbound, Jardiance (cardiovascular and kidney disease) and Verzenio (breast cancer) treatments. Trulicity sales fell 26.3% YoY to $1.456 billion. Verzenio revenues rose 39.9% YoY to $1.05 billion. Mounjaro sales rose 217.8% YoY to $1.806 billion. Jardiance sales rose $18.9% YoY to $686.5 million. Upside Guidance Lilly raised full-year 2024 top and bottom line forecasts. Lilly expects 2024 EPS of $13.50 to $14.00, up from $12.20 to $12.70 versus $12.49 consensus estimates. Full-year 2024 revenues are expected to be between $42.4 billion and $43.6 billion, raised from $40.4 billion to $41.6 billion versus $41.44 billion. Manufacturing Capacity Expansion Remains Top Priority Eli Lilly CEO David Ricks stated its top priority is to execute its manufacturing expansion plans. The company will acquire a state-of-the-art facility from Nexus Pharmaceuticals in Prairie, Wisconsin. It's been FDA-approved, and initial production will commence by the end of 2025. The $2.5 billion parenteral manufacturing facility in Germany broke ground recently. The company is working to maximize production and productivity in all its existing facilities. The EMA approval for its upcoming multi-dose KwikPen for Mounjaro delivery is expected to unlock new supply capacity in Europe and international markets. Ricks commented, "We continue to make progress against our plans to increase manufacturing capacity, the most ambitious expansion plan in our company's history." Eli Lilly and Co. analyst ratings and price targets are on MarketBeat. Before you consider Eli Lilly and Company, 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 Eli Lilly and Company wasn't on the list. While Eli Lilly and Company currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
3 Super-Safe Dividend Stocks That Have Been Making Recurring Payments for 130+ Years 2024-05-06 03:49:00+00:00 - A company's track record for paying dividends is a good indicator of how versatile and adaptable the business is in dealing with changing economic conditions. That doesn't mean that the dividend will always be safe and that payouts will always continue, but it's an important factor that dividend investors often consider when picking income stocks. Three stocks that have been making dividend payments going back to the 1800s are Eli Lilly (NYSE: LLY), Coca-Cola (NYSE: KO), and Toronto-Dominion Bank (NYSE: TD). Here's a look at how far back their streaks go and why these are still terrific dividend stocks to own today. 1. Eli Lilly: 1885 Eli Lilly has been paying investors a dividend since 1885. Over the years, it has evolved, acquired companies, brought new drugs to market, and continued to be a reliable dividend investment. Today, the stock may not look like much of an income investment; it's only yielding 0.7% -- well below the S&P 500 average of 1.4%. But in reality, this has been an exceptional dividend stock. The company has doubled its dividend payments in just the past five years. Although its yield looks low, that's only because of how hot the stock has been of late. In three years, shares of Eli Lilly have soared more than 300%. If not for its rapidly rising share price, Eli Lilly's dividend yield would be much higher than it is today. The company's growth prospects look amazing. Eli Lilly has a couple of promising assets in its portfolio in Zepbound and Mounjaro, with the former being a top weight-loss drug and the latter being approved for diabetes. Together, these drugs could generate more than $50 billion in annual revenue for Eli Lilly. With strong financials and some terrific growth on the horizon, the drugmaker isn't just a good dividend stock but also a phenomenal option for growth investors. 2. Coca-Cola: 1893 Soft drink giant Coca-Cola is a top dividend growth stock. It's part of an exclusive club of Dividend Kings, having increased its payouts for decades. While it has been raising its dividend payments for 62 consecutive years, its streak of issuing dividends goes back all the way to 1893. Today, the stock's dividend yields 3.1%. Despite the continuous rate hikes, Coca-Cola's dividend isn't unsustainable; profits have soared along with the dividend increases. Coca-Cola's payout ratio is around 75%, which is a sustainable rate and offers room for even more aggressive rate hikes than the already generous 5.4% increase the company announced earlier this year. Story continues Coca-Cola's business remains solid, with the company projecting around 7% organic revenue growth this year. With a versatile and seemingly unshakable business model, this is one of the best dividend stocks you can buy and hold for the long haul. 3. Toronto-Dominion Bank: 1857 The longest dividend streak on this list belongs to Toronto-Dominion Bank. Going back to 1857, the Canadian-based bank has one of the best track records for paying dividends that you'll find. It doesn't have a long streak of dividend increases like Coca-Cola does, but it does offer investors a much higher yield at 5.1%. Investors haven't been all that bullish on bank stocks amid rising interest rates, but make no mistake, TD is one of the safer options in the industry you can hold in your portfolio. In the trailing 12 months, the company has reported net income totaling 11.5 billion Canadian dollars on revenue of CA$53.6 billion, for a solid profit margin of 21%. TD is one of Canada's top chartered banks, and it also has a strong presence in the U.S. The company's diversified business makes it a suitable option for long-term investors, and its high-yielding stock makes now an optimal time to consider buying shares of TD. Should you invest $1,000 in Eli Lilly right now? Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Eli Lilly wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $544,015!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. See the 10 stocks » *Stock Advisor returns as of April 30, 2024 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 3 Super-Safe Dividend Stocks That Have Been Making Recurring Payments for 130+ Years was originally published by The Motley Fool
The Oracle of Omaha warns about AI: What Buffett said at Berkshire 2024-05-06 03:41:00+00:00 - A version of this post first appeared on TKer.co OMAHA, Neb. — Warren Buffett, CEO of Berkshire Hathaway, has mixed feelings about artificial intelligence (AI). "It has enormous potential for good and enormous potential for harm," Buffett said at Berkshire’s annual shareholders meeting on Saturday. He shared a personal experience with AI that had him shook. "Fairly recently, I saw an image in front of my screen," he said. "It was me, and it was my voice and wearing the kind of clothes I wear. My wife or my daughter wouldn't have been able to detect any difference. And it was delivering a message that in no way it came from me." He explained: "When you think about the potential for scamming people… Scamming has always been part of the American scene. If I was interested in investing in scamming— it’s gonna be the growth industry of all time." Buffett drew comparisons to the emergence of nuclear weapons. "We let the genie out of the bottle when we developed nuclear weapons, and that genie has been doing some terrible things," he said. "The power of that genie scares the hell out of me. And I don’t know of any way to get the genie back in the bottle. And AI is somewhat similar. It’s part of the way out of the bottle." In the context of investing, analysts have mostly spoken bullishly about AI thanks to the potential for improving productivity across many sectors. TKer has written about this narrative here, here, and here. Asked later about how Berkshire’s own businesses could be disrupted by AI, Buffett noted the technology would affect "anything that’s labor sensitive" and that for workers it could "create an enormous amount of leisure time." Greg Abel, vice chairman of Berkshire’s non-insurance businesses, added that "we’re in the early innings" of understanding the impact. Buffett has taken this tone before Buffett, arguably the most successful stock market investor in history, is well-known for his persistent bullish long-term view of the U.S. economy and stock market. "I understand the United States’ rules, weaknesses, strengths," Buffett said on Saturday. "I don't have the same feeling generally around the world. And the lucky thing is that I don't have to." But he’s no stranger to expressing caution on matters with significant downside risks — especially in regards to technology. For example, Buffett has been vocal about his concerns about cyber attacks. Here’s some language I shared in the March 5, 2023 issue of TKer: Story continues "There is, however, one clear, present and enduring danger to Berkshire against which Charlie and I are powerless. That threat to Berkshire is also the major threat our citizenry faces: a ‘successful’ (as defined by the aggressor) cyber, biological, nuclear or chemical attack on the United States." - Buffett in 2016" "I don't know that much about cyber, but I do think that's the number one problem with mankind." - Buffett in 2017 "Cyber is uncharted territory. It’s going to get worse, not better."- Buffett in 2018 "I think cyber poses real risks to humanity." - Buffett in 2019 As you can see, this dire tone from Buffett is not new. What’s important is that it has never stopped him from being bullish on stocks for the long run. Zooming out Emerging technologies like AI come with risk, as they have the potential to scale up bad behavior in the same ways they’ll scale up good behavior. Broadly speaking, you can never be certain about how risky anything is. And even worse, there are limits to how much you can hedge a risk before you eliminate the potential for a reasonable return. Unfortunately, this is just the nature of investing in stocks. And it speaks to why returns in the stock market are relatively high — investors demand a high premium for the uncertainty tied to taking on the risk. "Nothing’s sure tomorrow," Buffett said at last year’s meeting. "Nothing’s sure next year. Nothing is ever sure in markets or in business forecasts or anything else." We can only hope that history repeats, and the good outcomes far outweigh the bad outcomes — as they always have. Reviewing the macro crosscurrents There were a few notable data points and macroeconomic developments from last week to consider: Stocks climbed last week with the S&P 500 rising 0.5% to close at 5,127.79. The index is now up 7.5% year to date and up 43.4% from its October 12, 2022 closing low of 3,577.03. The labor market continues to add jobs. According to the BLS’s Employment Situation report released Friday, U.S. employers added 175,000 jobs in April. It was the 40th straight month of gains, reaffirming an economy with robust demand for labor. Total payroll employment is at a record 158.29 million jobs, up 5.98 million from the prepandemic high. The unemployment rate — that is, the number of workers who identify as unemployed as a percentage of the civilian labor force — rose to 3.9% during the month. It was the 27th consecutive month below 4%. While it’s above its cycle low of 3.4%, it continues to hover near 50-year lows. Wage growth cools. Average hourly earnings rose by 0.2% month-over-month in April, down from the 0.3% pace in March. On a year-over-year basis, this metric is up 3.9%, the lowest rate since June 2021. Job openings fall. According to the BLS’s Job Openings and Labor Turnover Survey, employers had 8.49 million job openings in March, down from 8.81 million in February. While this remains elevated above prepandemic levels, it’s down from the March 2022 high of 12.18 million. During the period, there were 6.43 million unemployed people — meaning there were 1.32 job openings per unemployed person. This continues to be one of the most obvious signs of excess demand for labor. Layoffs remain depressed, hiring remains firm. Employers laid off 1.53 million people in March. While challenging for all those affected, this figure represents just 1.0% of total employment. This metric continues to trend below pre-pandemic levels. Hiring activity continues to be much higher than layoff activity. During the month, employers hired 5.5 million people. People are quitting less. In March, 3.33 million workers quit their jobs. This represents 2.1% of the workforce, which is the lowest level since August 2020 and below the prepandemic trend. A low quits rate could mean a number of things: more people are satisfied with their job; workers have fewer outside job opportunities; cooling wage growth; productivity will improve as fewer people are entering new unfamiliar roles. Labor productivity inches up. From the BLS: "Nonfarm business sector labor productivity increased 0.3% in the first quarter of 2024 … as output increased 1.3 percent and hours worked increased 1.0%. … From the same quarter a year ago, nonfarm business sector labor productivity increased 2.9%." From JPMorgan: "Labor productivity had been running at a particularly strong pace for much of last year ... and some reversion lower was likely, but we suspect the underlying trend for productivity growth remains stronger than today’s preliminary quarterly growth suggests." Job switchers still get better pay. According to ADP, which tracks private payrolls and employs a different methodology than the BLS, annual pay growth in April for people who changed jobs was up 9.3% from a year ago. For those who stayed at their job, pay growth was 5%. Key labor costs metric heat up. The employment cost index in the Q1 2024 was up 1.2% from the prior quarter, up from the 0.9% rate in Q4. This was the hottest print since Q3 2022. On a year-over-year basis, it was up 4.2% in Q1, unchanged from the Q4 level. From Renaissance Macro: "Plenty of indicators out there that show cooling labor costs. Unfortunately, the best one, the Employment Cost Index, is not one of them." Unemployment claims tick lower. Initial claims for unemployment benefits stood at 207,000 during the week ending April 27, unchanged from the week prior. While this is above the September 2022 low of 187,000, it continues to trend at levels historically associated with economic growth. Consumer vibes recovery stalls. The Conference Board’s Consumer Confidence Index fell in April. From the firm’s Dana Peterson: "Confidence retreated further in April, reaching its lowest level since July 2022 as consumers became less positive about the current labor market situation, and more concerned about future business conditions, job availability, and income. … In the month, confidence declined among consumers of all age groups and almost all income groups except for the $25,000 to $49,999 bracket. Nonetheless, consumers under 35 continued to express greater confidence than those over 35. In April, households with incomes below $25,000 and those with incomes above $75,000 reported the largest deteriorations in confidence. However, over a six-month basis, confidence for consumers earning less than $50,000 has been stable, but confidence among consumers earning more has weakened." Consumers feel less great about the labor market. From The Conference Board’s April Consumer Confidence survey: "Consumers’ appraisal of the labor market deteriorated in April. 40.2% of consumers said jobs were 'plentiful,' down from 41.7% in March. 14.9% of consumers said jobs were 'hard to get,' up from 12.2%." Many economists monitor the spread between these two percentages (a.k.a., the labor market differential), and it’s been reflecting a cooling labor market. Gas prices tick up. From AAA: "The national average for a gallon of gas waffled up and down over the past week before settling higher by two cents at $3.67. The slight increase in pump prices happened despite a lull in domestic gasoline demand and falling oil prices. … According to new data from the Energy Information Administration (EIA), gas demand rose slightly from 8.42 million b/d to 8.62 last week. Meanwhile, total domestic gasoline stocks increased by .4 million bbl to 227.1 million bbl. Tepid demand, increasing supply, and falling oil prices could lower pump prices." Card data mixed on April spending. From JPMorgan: "As of 23 Apr 2024, our Chase Consumer Card spending data (unadjusted) was 2.6% below the same day last year. Based on the Chase Consumer Card data through 23 Apr 2024, our estimate of the U.S. Census April control measure of retail sales m/m is 0.28%." From Bank of America: "Total card spending per HH was up 0.5% y/y in the week ending Apr 27, according to BAC aggregated credit & debit card data. This was a bounce back from last week's -0.5% y/y total card spending growth rate. Retail ex auto spending per HH came in at -0.2% y/y in the week ending Apr 27." Home prices rise. According to the S&P CoreLogic Case-Shiller index, home prices rose 0.6% month-over-month in February. From S&P Dow Jones Indices’ Brian Luke: "Since the previous peak in prices in 2022, this marks the second time home prices have pushed higher in the face of economic uncertainty. The first decline followed the start of the Federal Reserve’s hiking cycle. The second decline followed the peak in average mortgage rates last October. Enthusiasm for potential Fed cuts and lower mortgage rates appears to have supported buyer behavior, driving the 10- and 20- City Composites to new highs." Mortgage rates rise. According to Freddie Mac, the average 30-year fixed-rate mortgage rose to 7.22% from 7.17% the week prior. From Freddie Mac: "The 30-year fixed-rate mortgage increased for the fifth consecutive week as we enter the heart of Spring Homebuying Season. On average, more than one-third of home sales for the entire year occur between March and June. With two months left of this historically busy period, potential homebuyers will likely not see relief from rising rates anytime soon. However, many seem to have acclimated to these higher rates, as demonstrated by the recently released pending home sales data coming in at the highest level in a year." There are 146 million housing units in the U.S., of which 86 million are owner-occupied. 39% are mortgage-free. Of those carrying mortgage debt, almost all have fixed-rate mortgages, and most of those mortgages have rates that were locked in before rates surged. All of this is to say: Most homeowners are not particularly sensitive to movements in home prices or mortgage rates. Services surveys signal growth is cooling. From S&P Global’s April U.S. Services PMI: "Demand has weakened, as signaled by the first fall in new orders for goods and services for six months, in part a reflection of both businesses and households adjusting to higher costs and the prospect of higher for longer interest rates. Business optimism has likewise cooled, dropping to the lowest since November, and companies are taking a more cautious approach to staffing levels." The ISM’s April Manufacturing PMI signaled contraction in the industry. Manufacturing surveys deteriorate. From S&P Global’s April U.S. Manufacturing PMI: "Business conditions stagnated in April, failing to improve for the first time in four months and pointing to a weak start to the second quarter for manufacturers. Order inflows into factories fell for the first time since December, meaning producers had to rely on orders placed in prior months to keep busy. However, there are some encouraging signs. The drop in orders appears to have been largely driven by reduced demand for semi-manufactured goods – inputs produced for other firms – as factories adjust their inventories of inputs. In contrast, consumer goods producers reported a further strengthening of demand, hinting that the broader consumer-driven economic upturn remains intact." It’s worth remembering that soft data like the PMI surveys don’t necessarily reflect what’s actually going on in the economy. Construction spending ticks lower. Construction spending declined 0.2% to an annual rate of $2.1 trillion in March. Business investment activity is up. Orders for nondefense capital goods excluding aircraft — a.k.a. core capex or business investment — grew 0.1% to $73.76 billion in March. Core capex orders are a leading indicator, meaning they foretell economic activity down the road. While the growth rate has leveled off a bit, they continue to signal economic strength in the months to come. Near-term GDP growth estimates look good. The Atlanta Fed’s GDPNow model sees real GDP growth climbing at a 3.3% rate in Q2. The Fed holds steady. The Federal Reserve announced it would keep its benchmark interest rate target high at a range of 5.25% to 5.5% as inflation data remain hotter than desired. Federal Reserve Board Chair Jerome Powell arrives for a news conference at the Federal Reserve in Washington, Wednesday, May 1, 2024. (AP Photo/Susan Walsh) (ASSOCIATED PRESS) From the Fed’s statement (emphasis added): "Recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have remained strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated. In recent months, there has been a lack of further progress toward the Committee's 2% inflation objective." The bottom line: The Fed will keep monetary policy tight until inflation rates cool further. That means the odds of a rate cut in the near term will remain low. Putting it all together We continue to get evidence that we are experiencing a bullish “Goldilocks” soft landing scenario where inflation cools to manageable levels without the economy having to sink into recession. This comes as the Federal Reserve continues to employ very tight monetary policy in its ongoing effort to get inflation under control. While it’s true that the Fed has taken a less hawkish tone in 2023 and 2024 than in 2022, and that most economists agree that the final interest rate hike of the cycle has either already happened, inflation still has to stay cool for a little while before the central bank is comfortable with price stability. So we should expect the central bank to keep monetary policy tight, which means we should be prepared for relatively tight financial conditions (e.g., higher interest rates, tighter lending standards, and lower stock valuations) to linger. All this means monetary policy will be unfriendly to markets for the time being, and the risk the economy slips into a recession will be relatively elevated. At the same time, we also know that stocks are discounting mechanisms — meaning that prices will have bottomed before the Fed signals a major dovish turn in monetary policy. Also, it’s important to remember that while recession risks may be elevated, consumers are coming from a very strong financial position. Unemployed people are getting jobs, and those with jobs are getting raises. Similarly, business finances are healthy as many corporations locked in low interest rates on their debt in recent years. Even as the threat of higher debt servicing costs looms, elevated profit margins give corporations room to absorb higher costs. At this point, any downturn is unlikely to turn into economic calamity given that the financial health of consumers and businesses remains very strong. And as always, long-term investors should remember that recessions and bear markets are just part of the deal when you enter the stock market with the aim of generating long-term returns. While markets have recently had some bumpy years, the long-run outlook for stocks remains positive. A version of this post first appeared on TKer.co
3 Magnificent Technology ETFs to Buy With $10,000 and Hold Forever 2024-05-06 03:11:00+00:00 - Investing in the stock market can be hard. After all, there are tens of thousands of investment options to choose from. So, where's the best place to start? In my opinion, exchange-traded funds (ETFs) offer something for everyone. They're a great place for new investors to start. Meanwhile, a seasoned investor can often find an ETF that helps them round out their portfolio or boost their returns. So, let's have a look at three technology ETFs that I think are worth consideration for growth-oriented investors. Image source: Getty Images. Technology Select Sector SPDR Fund First up is the Technology Select Sector SPDR Fund (NYSEMKT: XLK). This ETF is one of the largest tech-sector ETFs in the world, with over $65 billion in net assets. What's more, with a track record dating back to the 1990s, this is one of the oldest tech ETFs around. Top holdings include Microsoft, Apple, Nvidia, Broadcom, and Advanced Micro Devices. However, potential investors need to note how top-heavy those holdings are; Microsoft and Apple alone account for 42% of the fund's overall holdings. Company Name Symbol Percentage of Assets Microsoft MSFT 22.9% Apple AAPL 19.3% Broadcom AVGO 4.5% Nvidia NVDA 4.5% Advanced Micro Devices AMD 3.1% Salesforce CRM 3.1% Adobe ADBE 2.4% Accenture ACN 2.3% Cisco Systems CSCO 2.1% Oracle ORCL 2.1% Turning to performance, the fund has generated an amazing 20.3% compound annual growth rate (CAGR) over the last decade, easily outpacing the S&P 500's 12.5% CAGR over the same period. Moreover, the fund's expense ratio of 0.09% is great. It's one of the lowest expense ratios available for a sector-focused ETF, and it means investors will pay only $9 per year for every $10,000 invested in the fund. VanEck Semiconductor ETF Next up is the VanEck Semiconductor ETF (NASDAQ: SMH). As the name implies, this fund focuses on all facets of the semiconductor sector, including chip designers, manufacturers, and foundries. With semiconductors now appearing in more places than ever -- your smartphone, your car, perhaps even your refrigerator -- it's been a great time to own semiconductor stocks. As a result, the VanEck Semiconductor ETF boasts an incredible 27.2% CAGR dating back to 2014. Top holdings in the fund include Nvidia, Intel, and Broadcom. Company Name Symbol Percentage of Assets Nvidia NVDA 20.6% Taiwan Semiconductor Manufacturing Company TSM 11.9% Broadcom AVGO 7.7% ASML Holding ASML 4.9% Texas Instruments TXN 4.6% QUALCOMM QCOM 4.6% Intel INTC 4.5% Lam Research LRCX 4.5% Micron MU 4.4% Applied Materials AMAT 4.4% What's more, the rapid growth of artificial intelligence (AI) applications -- and the need for the fast, powerful semiconductors behind them -- means the future looks bright for chipmakers. Story continues Turning to costs, investors in the fund are assessed an expense ratio of 0.35%. While that's not terrible, it's also not the lowest fee around for tech-sector ETFs. In other words, you do pay up for quality when it comes to this ETF. Invesco QQQ Trust Last is the Invesco QQQ Trust (NASDAQ: QQQ). Now, strictly speaking, this fund is not a pure tech ETF; its holdings include stocks like Costco, PepsiCo, and Marriott International. However, over 50% of its holdings are tech companies, which means it qualifies as a tech-sector ETF in my book. Moreover, this fund, also known as "the QQQs," is one of my favorite ETFs. Here's why: It's loaded with great tech stocks. It's diverse but not over-diversified. The reason why it's not over-diversified is that the fund tracks the Nasdaq 100 index. That index comprises non-financial stocks listed on the Nasdaq exchange, weighted by market cap, with some modifications. In other words, it's similar to the S&P 500 index but a little smaller, with a higher concentration of tech stocks and no financial stocks. Top holdings include many of the Magnificent Seven, among others: Company Name Symbol Percentage of Assets Microsoft MSFT 8.8% Apple AAPL 7.6% Nvidia NVDA 5.8% Alphabet GOOG/GOOGL 5.4% Amazon AMZN 5.3% Meta Platforms META 5% Broadcom AVGO 4.4% Tesla TSLA 2.4% Costco COST 2.3% Advanced Micro Devices AMD 1.8% In terms of performance, the fund has delivered an 18.4% CAGR over the last ten years, which far outpaces the returns of the S&P 500, Dow Jones Industrial Average, and Russell 2000. Last, its expense ratio is reasonable: 0.20% -- meaning investors pay $20 per year for every $10,000 invested. To sum up, each of these tech-oriented ETFs offers something unique, but they are all worth considering for growth-seeking investors. Should you invest $1,000 in VanEck ETF Trust - VanEck Semiconductor ETF right now? Before you buy stock in VanEck ETF Trust - VanEck Semiconductor ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and VanEck ETF Trust - VanEck Semiconductor ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $544,015!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. See the 10 stocks » *Stock Advisor returns as of April 30, 2024 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jake Lerch has positions in Adobe, Alphabet, Amazon, Invesco QQQ Trust, Nvidia, and Tesla. The Motley Fool has positions in and recommends ASML, Accenture Plc, Adobe, Advanced Micro Devices, Alphabet, Amazon, Apple, Applied Materials, Cisco Systems, Costco Wholesale, Lam Research, Meta Platforms, Microsoft, Nvidia, Oracle, Qualcomm, Salesforce, Taiwan Semiconductor Manufacturing, Tesla, and Texas Instruments. The Motley Fool recommends Broadcom, Intel, and Marriott International and recommends the following options: long January 2025 $290 calls on Accenture Plc, long January 2025 $45 calls on Intel, long January 2026 $395 calls on Microsoft, short January 2025 $310 calls on Accenture Plc, short January 2026 $405 calls on Microsoft, and short May 2024 $47 calls on Intel. The Motley Fool has a disclosure policy. 3 Magnificent Technology ETFs to Buy With $10,000 and Hold Forever was originally published by The Motley Fool
Treasury Rally Risks Running Into a $125 Billion Brick Wall 2024-05-06 03:00:00+00:00 - (Bloomberg) -- Bond traders welcomed their first clear sign of a cooling US labor market, but it’s only a part of what’s needed to fire up the truly sweeping rally they’ve been hoping for all year. Most Read from Bloomberg US Treasuries surged Friday after a government report showed surprising softness in jobs and wage gains last month, adding to other recent evidence of slowing growth. The news crowned a late-week advance that started Wednesday after Federal Reserve Chair Jerome Powell pushed back on the need to raise rates and signaled cuts were coming as soon as warranted by the data. Investors are now cautiously upping their bets for easing this year, and yields on Fed-sensitive two-year notes are leading market gains. And yet, for all the signs of deceleration in some areas of the US economy, inflation remains sticky — a reality that may limit what the central bank can do and means bond yields are likely stuck in their recent ranges. On top of all that, auctions next week of a combined $67 billion of 10- and 30-year Treasury securities will test demand for longer-dated debt, which has soured among some investors. The government will also sell $58 billion of three-year notes as part of its so-called quarterly refunding auctions. The jobs report and Powell’s comments were “a relief for the market, but by no means are we pounding the table and thinking we are are going 50 to 100 basis points lower,” said Mark Lindbloom, a portfolio manager at Western Asset Management, which oversees about $385 billion. He sees shorter-term US securities such as two- and five-year notes outpacing longer-term debt. Powell said policy is restrictive enough to eventually tame inflation and also reminded investors that the Fed would react to signs of weakening job creation and wages. That dovish tilt was underlined in the wake of Friday’s employment data, when at one point the US two-year yield fell to 4.7%, some 30 basis points lower than their high for the year of 5.04% reached on Tuesday. The benchmark was at 4.81% on Friday afternoon. Curve Calculations In the month leading up to last week, traders had clawed back wagers for multiple rate cuts this year amid data pointing to relentless growth and persistent inflation. Now, market pricing reflects expectations for almost two full cuts instead of just one as of earlier last week. Story continues While some rate cuts will keep the two-year yield below last week’s peak, the outlook for 10- and 30-year bonds is less compelling for investors should inflation remain above the Fed’s target and Washington’s spendthrift ways result in another rise in long-end auction sizes. George Catrambone, head of fixed income, DWS Americas prefers owning the two-year “as the probability of rate hikes remains remote,” and remains “skeptical of the outer reaches of the curve,” and has been for “quite some time.” After flirting with a fresh 2024 peak of 4.75% last week, the 10-year was trading at 4.5% Friday. Any cheapening before the 10-year sale would see the issue provide a 4.5% fixed coupon, equating with the one briefly provided in November, the highest since 2007. While that looks good historically, plenty of investors are wary of fully embracing longer-dated debt right now. Read more: Bill Gross Says ‘Total Return’ Strategy He Pioneered Is ‘Dead’ “The back end is more vulnerable to repricing higher in yields” than “capped” front-end rates, said Jennifer Karpinski, managing director at Jennison Associates, which oversees $50 billion in fixed income assets. Jennison favors “a steepening trade strategy” in their portfolios, whereby they are overweight two-, three-, and five-year US Treasuries, while being underweight the 10-year note. “It’s hard to call when the long end does become attractive.” A steeper curve is in store should the Fed begin cutting and the market prices in more easing on softer data. That would result in the US two-year yield falling faster than longer-dated benchmarks. For would-be buyers of the long end, the real payoff is that inflation will moderate and allow the long end to join a front-end led rally. What Bloomberg Intelligence Says ... “The payrolls report for April hints wage growth may be slowing. The Federal Reserve remains data dependent so the Treasury market could stay volatile within defined ranges as data might be mixed near term.” — Ira F. Jersey and Will Hoffman, BI strategists Click here to read the full report The data remains mixed. Countering Friday’s jobs numbers, separate reports last week revealed stubborn pricing pressures in manufacturing and services. “Three months from now we could be looking at a very different picture on inflation,” said Mark Spindel, chief investment officer at Potomac River Capital, based in Bethesda, Maryland, who has been adding Treasuries across the curve. “I’m back to being more constructive on the outlook for rates, that they can fall.” Another path toward a steeper curve comes from the back end becoming more sensitive to inflation staying elevated and prompting investors to demand more compensation to own longer-dated Treasuries. This so-called term premium based on the New York Fed model remains slightly negative and some investors think a true normalization from the recent ultra-low rate era equates to a positive reading. “You’re still not seeing term premium come back into the long end and at some point we do think it comes back,” said Karpinski. “On the refunding, they are not increasing auction sizes for now, but if they do rise over time, it’s another factor that can drive yields up in the long end.” What to Watch Economic data: May 6: Senior loan officer opinion survey on bank lending May 7: Consumer credit May 8: MBA mortgage applications; wholesale trade sales and inventories May 9: Weekly jobless claims May 10: U. of Michigan sentiment and inflation expectations; monthly budget statement Fed calendar: May 6: Richmond Fed President Thomas Barkin: New York Fed President John Williams May 7: Minneapolis Fed President Neel Kashkari May 8: Vice Chair Philip Jefferson; Boston Fed President Susan Collins; Fed Governor Lisa Cook May 10: Fed Governor Michelle Bowman; Dallas Fed President Lorie Logan; Chicago Fed President Austan Goolsbee; Fed Vice Chair for Supervision Michael Barr Auction calendar: May 6: 13-, 26-week bills May 7: 42-day cash management bills; three-year notes May 8: 17-week bills; 10-year notes May 9: 4-, 8-week bills; 30-year bonds Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.
Where Will Arm Holdings Stock Be in Five Years? 2024-05-06 02:30:00+00:00 - With shares up by a whopping 37% year to date, Arm Holdings (NASDAQ: ARM) is one of many technology companies that have received significant attention because of their potential in artificial intelligence (AI). But unlike alternatives like Nvidia, the hype surrounding Arm Holdings hasn't materialized into significant business growth. Let's dig deeper into what the next five years could have in store for the company. Why is Arm Holdings so popular ? Since its initial public offering (IPO) in September 2023, Arm Holdings has become a Wall Street darling. The U.K.-based technology company designs and licenses high-performance, energy-efficient designs for central processing units (CPUs) -- a type of semiconductor chip that enables computers to run their operating system and applications. While Arm doesn't sell chips directly, some investors are optimistic that AI-related demand could boost its business. But so far, the numbers aren't impressive. Fiscal third-quarter revenue increased by only 14% year over year to $824 million, while net income halved to $87 million. To make matters worse, Arm's management states that this modest growth was mainly because of a recovery in the smartphone market, which has nothing to do with AI. To put Arm's growth in perspective against a "real" AI company, Nvidia's top line grew 265% year over year (to $22.1 billion) in its most recent quarter while its profits skyrocketed 769%. What could the next five years have in store for Arm Holdings? Right now, many companies seem to be overstating their potential in AI to earn a greater valuation for their investors. But over the next five years, these companies must translate this hype into sustainable earnings and cash flow to justify their stock price gains. Arm's CEO, Rene Haas, seems confident that his company is up to the task. Arm's CPU architecture is widely used in consumer and enterprise electronics, and Haas believes the growing demand for AI will have a spillover benefit. More directly, chipmakers like Nvidia use Arm's designs in products, such as the GH200, which pairs Nvidia's h200 graphics processing unit (GPU) with an Arm-based CPU processor. The more Nvidia sells such products, the more licensing revenue it will have to pay Arm. That said, Arm's AI potential still seems overstated. Image source: Getty Images. AI training and inference mainly rely on GPUs, not the CPUs that Arm specializes in. While some products combine the two types of chips, there is no guarantee that this will become a major opportunity for Arm because the company can't raise licensing fees too high without risking its clients switching to alternate CPU designs from rivals such as Intel. Story continues Investors should also remember that Arm is already a massive and mature company, with a 99% market share in premium smartphones and double-digit shares in other categories. For new investors, this is a risk because even if AI-related revenue grows, it may not be enough to counteract potential declines in the company's much larger segments. Is Arm Holdings stock a buy? With a forward price-to-earnings (P/E) multiple of 74, Arm Holdings' stock is simply too expensive for what is on offer. While the company may have some potential to benefit from AI-related demand over the next five years, investors shouldn't pay such a premium valuation for a mature company that isn't generating particularly impressive growth. To put Arm's outrageous valuation in context, Nvidia trades for just 36 times forward earnings despite posting a significantly higher growth rate and enjoying more direct benefits from the AI opportunity. Should you invest $1,000 in Arm Holdings right now? Before you buy stock in Arm Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Arm Holdings wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $544,015!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. See the 10 stocks » *Stock Advisor returns as of April 30, 2024 Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Where Will Arm Holdings Stock Be in Five Years? was originally published by The Motley Fool
Love Free Food At Airports? These Five Credit Cards Unlock Airport Lounges Around The World 2024-05-05 21:56:00+00:00 - Loading... Loading... The sight of free food is often too exciting to pass. To make it even better, free food at airport lounges across the world is both a money saver as well as an option that allows you to try different cuisines and local tastes the moment you set foot in a new country. Airport food can be costly, too, which makes free lounge access that much more attractive. To help you out, we've compiled a list of the best credit cards that unlock airport lounges around the world. See Also: No US City Makes The Cut! Where Are The 10 Best Airports In The World? 1. American Express Platinum Credit Card American Express Platinum Credit Card | Image credit: American Express American Express Platinum credit card is one of the best if you are looking for extensive lounge access. With access to over 1,500 lounges across 140 countries, this credit card is as good as it gets. From Centurion Network, Delta Sky Club, Lufthansa Lounge, and Plaza Premium Lounge to Priority Pass Select, you name it, this credit card has it. 2. Chase Sapphire Reserve Credit Card Chase Sapphire Reserve Credit Card | Image credit: Chase The Chase Sapphire Reserve credit card covers over 1,300 lounges thanks to Priority Pass across 148 countries. You can also bring up to two guests for free with this card, making it a flexible and cost-effective option. 3. Capital One Venture X Rewards Credit Card Capital One Venture X Rewards Credit Card| Image credit: Capital One The Capital One Venture X Rewards credit card gives you access to the Priority Pass Select network as well as unlimited access to Capital One lounges, which are available at Dallas Fort-Worth International Airport, Denver International Airport, and Dulles International Airport. Loading... Loading... 4. U.S. Bank Altitude Connect Credit Card U.S. Bank Altitude Connect Credit Card | Image credit: U.S. Bank The U.S. Bank Altitude Connect credit card is a great option if you're just getting started with cards and want to get a taste of how they work. At an annual fee of just $95, you get way more benefits out of these thanks to four free lounge visits in a year, across 1,500 locations worldwide. 5. American Express Delta SkyMiles Reserve Credit Card American Express Delta SkyMiles Reserve Credit Card | Image credit: American Express If you're a Delta fan, then this is among the best cards you can score. It offers 15 visits to the Delta Sky Club per year, four guest passes, free checked baggage, upgrade priority, and several other benefits. Image Via Shutterstock
Donald Trump Says He's Not Concerned About His Legal Challenges: 'In A Way, I Don't Care ... Life Is Life' 2024-05-05 21:53:00+00:00 - Loading... Loading... In a recent private donor event in Florida, former President Donald Trump appeared unfazed by his ongoing legal issues. What Happened: NBC reported that Trump addressed his criminal indictments during a luncheon at Mar-a-Lago. "If you care too much, you tend to choke. And in a way, I don't care. It's just, you know, life is life," the outlet quoted him saying. Despite his casual demeanor, Trump confessed to being shocked when he was first indicted. "Once I got indicted, I said, Holy shit. I just got indicted. Me. I got indicted," he said. Trump faced a Manhattan court last month for the first time, answering to 34 counts of falsifying business records related to payments made to adult film actress Stormy Daniels. Also Read: Donald Trump Suggests Supreme Court Justices He Appointed Could 'Go Out Of Their Way' To Hurt Him In Colorado Appeal: 'I've Never Seen Anything Like It' At the event, Trump also took a jab at Democrats, accusing them of "running a Gestapo administration." He further claimed that President Joe Biden was "the worst president in the history of our country." "Once I got indicted, I said, well, now the gloves have to come off," Trump said. "The worst president in the history of our country. He's grossly incompetent. He's crooked as hell. He's the Manchurian candidate, he accepts massive amounts of money from China, from Russia, from Ukraine, and many other countries." The event was a part of the Republican National Committee's spring retreat, featuring potential vice president candidates like South Carolina Sen. Tim Scott and New York Rep. Elise Stefanik. Why It Matters: In April, the first week of Trump's criminal trial took place, focusing on hush money payments made during his 2016 presidential campaign. Loading... Loading... Recent polls also suggest that, amid his many legal challenges, the former president could face defeat against Biden in the upcoming 2024 presidential race. Now Read: Trump's Niece Says Verdict In E. Jean Carroll Defamation Trial 'Is One Of The Worst Days' In His Life: 'Donald Is Finally Facing The Consequences' This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Photo: Shutterstock
Trump Vs. Biden: One Candidate Gains Significant Ground Among This Demographic In Tightly Contested Race 2024-05-05 21:21:00+00:00 - Loading... Loading... Former President Donald Trump has gained considerable support among Catholic voters in the U.S., outpacing President Joe Biden. What Happened: A Pew Research poll reveals that 55% of Catholics now favor Trump over Biden in a potential face-off. This is a marked shift from the 2020 election, where Trump only held a slim lead of 50% to 49%. The poll also shows that Biden's Catholic support has dwindled to 43%. This 12% swing in favor of Trump signals a significant shift in Catholic voter sentiment. Despite identifying as a practicing Catholic, Biden's positions on issues such as pro-choice deregulation and gender ideology affirmation have faced criticism from Catholic leaders, according to Fox News. Cardinal Wilton Gregory of Washington, D.C., previously labeled Biden a "cafeteria Catholic" for his selective adherence to the faith. Interestingly, Biden still holds a slight lead among Hispanic Catholics, with a narrow margin of 49%-47%. This is a significant shift to the right for this demographic, as a similar 2020 poll showed Hispanic Catholics favoring Biden over Trump with a 67%-26% split. Also Read: Donald Trump Reportedly Hid Billionaire's Bond Offer From Court To Save Millions The poll also found that approximately 60% of Protestants support Trump, while about 38% favor Biden. Atheists, agnostics and the religiously unaffiliated back Biden, with approximately 69% supporting the Democratic incumbent and only 28% supporting Trump. Why It Matters: This shift in Catholic voter sentiment comes as a surprise, given the earlier polls in May 2024 suggested a potential defeat for Trump against Biden. However, April's polls showed a thin lead for Trump. By the end of April, Trump had outpaced Biden by a slim margin of two points, suggesting a tightening race. Loading... Loading... This recent surge in Catholic support for Trump could impact the upcoming elections. Now Read: Marjorie Taylor Greene Claims She Has Proof That Votes For Donald Trump In 2020 Were 'Lost In The Mail': 'I Think He'll Be Vindicated Easily' This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Photo: Shutterstock
Downtown Los Angeles is bustling with new residents. Not so much with office workers, though. 2024-05-05 21:20:25+00:00 - Los Angeles' downtown has become a hot spot for residential growth in the city. The neighborhood's office market, however, continues to languish. Downtown LA is expected to be a major draw for residential living over the next few decades. NEW LOOK 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 For generations, downtown Los Angeles was the region's nexus of commerce, as vast office spaces and old-line department stores made the neighborhood a business powerhouse. But urban decay and suburbanization, which accelerated after World War II, made downtown into more of a 9-to-5 office hub. For decades, the city core was a destination for work but not much else. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
Mystik Dan Triumphs At Kentucky Derby, Marking Third Consecutive Year Horse With 15-1 Odds Or Worse Wins Race 2024-05-05 21:01:00+00:00 - Loading... Loading... In a dramatic finish, Mystik Dan, under the guidance of jockey Brian Hernandez Jr., secured the victory in the 150th Kentucky Derby on Saturday. What Happened: The race, which took place at Churchill Downs in Louisville, Kentucky, saw Mystik Dan narrowly triumph over Sierra Leone and Forever Young in one of the Derby's tightest finishes ever. The Associated Press reported that this is the 10th time in the Derby's history that the race has been decided by a nose, the smallest margin in horse racing. Mystik Dan, an 18-1 shot, edged out Sierra Leone by a nose, with Forever Young another nose back in third. Sierra Leone, the race's most expensive horse, was valued at $2.3 million. The result was so close that officials took several minutes to confirm Mystik Dan's win. "The longest few minutes of my life," is how Brian Hernandez Jr., Mystik Dan's jockey, described the wait for the result. The winner claimed the largest share of the $5 million purse, amounting to $3.1 million. The race drew a crowd of 156,710 at Churchill Downs, the largest since 2018. Also Read: Virtual Horse Racing Game Photo Finish Announces New Funding – Meet The Investors And Next Steps This victory marks a significant milestone for Hernandez and trainer Kenny McPeek, who also achieved success in the Kentucky Oaks for fillies on Friday with Thorpedo Anna. Fierceness, a 3-1 favorite, finished in 15th place. Why It Matters: The Kentucky Derby has a history of surprising outcomes. NBC Connecticut reported Rich Strike's victory in 2022, the second-biggest upset in derby history. Strike overcame 80-1 odds to beat the field at Churchill Downs. Loading... Loading... The race also has a notorious jinx associated with the No. 17 post position, which has never produced a winner in 149 previous derbies. Moreover, the derby has faced controversies in recent years. In 2022, trainer Bob Baffert sued Churchill Downs over a two-year ban following the disqualification of his horse, Medina Spirit, for failing a drug test after winning the 2021 derby. The 2023 derby also saw the death of several horses at Churchill Downs, casting a shadow over Mage's victory. Now Read: EXCLUSIVE — Kentucky Derby Fans Can Score $100K Prize With Web3-Powered SuperFecta Scratch-Off This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Photo: Shutterstock
Here's the 'true solution' to the problem of audio deepfakes, according to the CEO of ElevenLabs 2024-05-05 20:09:03+00:00 - AI voice tech company ElevenLabs is grappling with deepfakes. The technology, while innovative, has the potential for misuse, leading to concerns from lawmakers. ElevenLabs CEO said digitally watermarking synthetic voices is a solution. NEW LOOK 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 Companies at the forefront of AI voice technology are grappling with how to regulate deepfakes without stifling innovation. "It's going to be a cat-and-mouse game," Mati Staniszewski, the cofounder and CEO of ElevenLabs, told The Atlantic . ElevenLabs — which vaulted to a $1.1 billion valuation after launching in beta last year — uses AI to generate convincing audio clips. That includes text-to-speech voiceovers, dubbing audio into 29 languages, and cloning voices. The company claims its users generated over 100 years of audio in the past year. Related stories However, lawmakers worry the technology has a dangerous potential for abuse. Advertisement Advances in AI have correlated with a rise in supercharged phone scams in which imposter scammers cast themselves as love interests, family members, or government officials. Biden's AI chief, Bruce Reed, has even said "voice cloning" is the one thing that keeps him up at night. And last year 4chan users exploited the tool from ElevenLabs to generate deepfakes of celebrities spewing racist and transphobic content, according to Vice . But Staniszewski is an idealist. He sees ElevenLabs' technology contributing to a world where patients with neurodegenerative diseases like ALS can still communicate in their voice after they lose the ability to speak. It also has potential as a tool to help people communicate across cultures and languages. Advertisement New York Mayor Eric Adams has been making robocalls in Mandarin, Yiddish, and Haitian Creole with ElevenLabs technology and said he's been able to reach more of the city's non-English speaking residents. To capitalize on this potential while preventing fraud, Staniszweski said users should be able to identify AI-generated voices from human ones. The "true solution," Staniszewski told The Atlantic, is digitally watermarking synthetic voices so humans can differentiate real from fake. The company is developing the technology, but it'll only be effective with the cooperation of other companies. ElevenLabs has signed an accord with several other AI companies, including OpenAI, Anthropic, Google, and Meta to combat deepfakes in the 2024 election. ElevenLabs did not immediately respond to a request for comment from Business Insider.
CIA director will head to Israel for more cease-fire and hostage negotiations 2024-05-05 19:56:00+00:00 - CIA Director William Burns plans to travel to Israel this week for more cease-fire and hostage release talks after holding discussions Sunday in the Qatari capital, Doha, a source with knowledge of the matter told NBC News. Burns, who is scheduled to travel to Israel on Monday, had previously been in Cairo, where Hamas stated that cease-fire discussions concluded Sunday following “in-depth and serious discussions.” The militant group reiterated key demands that Israel again rejected. After earlier signs of progress, the outlook appeared to dim as Prime Minister Benjamin Netanyahu vowed to resist international pressure to halt the war. Israel closed its main crossing point for delivering badly needed humanitarian aid for Gaza after Hamas attacked it. Defense Minister Yoav Gallant claimed Hamas wasn’t serious about a deal and warned of “a powerful operation in the very near future in Rafah and other places across all of Gaza.” Israel didn’t send a delegation to the talks mediated by Egypt and Qatar. Egyptian state media reported that the Hamas delegation went for discussions in Qatar, where the group has a political office, and will return to Cairo for further negotiations on Tuesday. Another threat to talks came as Israel ordered the local offices of Qatar’s Al Jazeera satellite news network to close, accusing it of broadcasting anti-Israel incitement. The ban did not appear to affect the channel’s operations in Gaza or the West Bank. Netanyahu, under pressure from hard-liners in his government, continued to lower expectations for a cease-fire deal, calling the key Hamas demands “extreme” — including the withdrawal of Israel forces from Gaza and an end to the war. That would equal surrender after the Hamas attack on Oct. 7 that triggered the fighting, he said. Hamas leader Ismail Haniyeh said in a statement earlier that the militant group was serious and positive about the negotiations and that stopping Israeli aggression in Gaza is the main priority. A Palestinian woman inspects a damaged house in the Al-Salam neighborhood, east of the city of Rafah, in the southern Gaza Strip on Sunday. Abed Rahim Khatib / AP But Israel’s government again vowed to press on with a military operation in Rafah, the southernmost Gaza city on the border with Egypt, where more than half of Gaza’s 2.3 million residents now seek shelter from Israeli attacks. Rafah is a key entry point for aid. Kerem Shalom, now closed, is another. The Israeli military reported 10 projectiles were launched at the crossing in southern Israel and said its fighter jets later struck the source. Hamas said it had been targeting Israeli soldiers in the area. Israel’s Channel 12 TV channel said 10 people were wounded, three seriously. It was unclear how long the crossing would be closed. The head of the U.N. agency for Palestinian refugees, Philippe Lazzarini, called for an independent investigation and “accountability for the blatant disregard of humanitarian workers.” He also said Israel this week denied him entry to Gaza for a second time. The closing of Kerem Shalom came shortly after the head of the U.N. World Food Program asserted there was a “full-blown famine” in devastated northern Gaza, one of the most prominent warnings yet about the toll of restrictions on food and other aid entering the territory. The comments were not a formal famine declaration. In expanded remarks as the full NBC News interview was released Sunday, WFP chief Cindy McCain said famine was “moving its way south” in Gaza and that Israel’s efforts to allow in more aid were not enough. “We need more ability to be able to get more trucks in,” she said. “We have right now a mass on the outside border, about enough trucks and enough food for 1.1 million people for about three months. We need to get that in.” A scene of the destruction in the Al-Salam neighborhood, east of the city of Rafah, on Sunday. Abed Rahim Khatib / AP Gaza’s vast humanitarian needs put further pressure on the pursuit of a cease-fire. The proposal that Egyptian mediators had put to Hamas sets out a three-stage process that would bring an immediate six-week cease-fire and partial release of Israeli hostages taken in the Oct. 7 attack, and it would include some sort of Israeli pullout. The initial stage would last for 40 days. Hamas would start by releasing female civilian hostages in exchange for Palestinian prisoners held by Israel. Netanyahu claimed that Israel has shown willingness to make concessions but said it “will continue fighting until all of its objectives are achieved.” That includes the stated aim of crushing Hamas. Israel says it must target Rafah to strike remaining fighters there despite warnings from the U.S. and others about the danger to civilians. An Israeli strike Sunday on the al-Attar family house in an urban refugee camp near Rafah killed four children, including a baby, and two adults, according to Abu Youssef al-Najjar Hospital. In a fiery speech for Israel’s annual Holocaust memorial day, Netanyahu added: “I say to the leaders of the world, no amount of pressure, no decision by any international forum will stop Israel from defending itself. If Israel is forced to stand alone, Israel will stand alone.” The Hamas cross-border attack on Oct. 7 killed 1,200 people, and 250 others were taken hostage. Israel says militants still hold around 100 hostages and the remains of more than 30 others. Netanyahu is under growing pressure from some hostages’ families to make a deal to end the war and get hostages freed. Israeli’s air and ground offensive has killed over 34,500 people, according to Palestinian health officials, who don’t differentiate between civilians and combatants but say women and children make up a majority of those killed. Israel blames Hamas for civilian deaths, accusing it of embedding in residential and public areas. The Israeli military says it has killed 13,000 militants, without providing evidence to back up the claim.
How previous investing mistakes are shaping my thinking on the latest stock gone wrong 2024-05-05 19:46:00+00:00 - When you make a mistake in this business you can do one of two things: You can cut your losses and move on or you can stand your ground while rethinking where it went wrong. I am on the fence about which one is better, but it's easy to see why the first approach — aligned with the idea that "your first loss is your best loss" — makes more sense than the latter, more cerebral tact. That's because cerebral in this business is often nothing more than a crutch leaned on out of fear. The fear is of ultimately being right, but no longer being involved. This dilemma comes up quite a bit these days when Director of Portfolio Analysis Jeff Marks and I debate positions in the office before we talk to you. So, I devoted this Sunday's missive to the dichotomy of loss-cutting versus what I call battling, which is shorthand for, "We aren't going to be shaken out of a position so quickly." Let's start with the "first loss/best loss" philosophy. This is the view I was taught back in the 1980s when I traded with my former wife and good friend Karen Cramer. She had been No. 2 on a great trading desk and then No.1 on a not-so-hot trading desk before she worked with me at Cramer & Co. We, of course, ran a hedge fund, so we had no one to answer to when it came to individual stock picking but had everyone to answer to when it came to performance. We did as we pleased, and we worked hard not to lose money. Our philosophy was always to let our good stocks run and to sell our bad stocks as soon as possible, believing that we could always buy them back. Given that we compounded at 24% after fees for 14 years versus 8% for the S & P 500, you can't quibble with anything that enabled us to generate that return. That's why "first loss/best loss" was so treasured. Given that Karen subjected me to pure torture daily in the form of "the rundown," it was easy to see how you would agree to this principle. Here's how it worked in reality. Three times a day we would gather "off the desk," and I would have to defend every stock we owned. She would read them down, and I would explain my rationale while she would ask questions based on what she was "seeing" from her myriad trading sources. The first rundown would be around 8:30 a.m. She would ask me if there was anything new about each position. That chat was mostly related to any new research on each position. At about 10:30 a.m., we would go through them again with an eye toward how poorly something was trading. Do we add? Do we shrink? The afternoon was the most painful because it was mostly about what we were losing on and why I badly wanted to stick with it. This third session simply was about her desire to get rid of what she deemed to be "bad" positions not worth owning. If I didn't offer a compelling defense of a stock, she would just kick it out. Her rationale was that it should be very difficult for a stock to stay in the portfolio — or "to stay on the sheets," to use the inside baseball phrase. She was self-taught, but only later did we instill a vision brought to us by the late Max Palevsky, a founder of Intel and a tremendous art collector who insisted on selling a painting if he wanted a new painting. That discipline, borrowed from the art world, brought some stability and uniformity to the chaos of the third Q & A that she performed every afternoon. It worked well even as it was brutal beyond all reason. And you wonder why I eventually quit being a hedge-fund manager after 14 years. That level of intensity can make the process of making money very unpleasant. If you read my book "Confessions of a Street Addict," you can see why I quit even as I made a lot of money for others and myself. Sometimes people ask me if I would go back to the hedge-fund world one day, and I have to say that the way I did it would be too intense and not enjoyable compared with how much time there might be to spend the "winnings." Suffice it to say that the rigor with which we approached things continues with the Charitable Trust, as does the philosophy of making it hard to "stay on the sheets." We are doing many of the things that we did with Cramer & Co., but we are not traders and we are not running a hedge fund like the people you see on financial television. Our goal is to teach, not to trade. If I wanted to go back to trading, I could. But if the issue is trading versus teaching, I am going with the latter. You might ask, "Given the money you could make, why would you ever choose teaching?" My answer is that I like teaching more than trading. It's simply a life choice. Managing a public portfolio, as mortifying as it can be, is more satisfying. Lessons from the Club This brings me back to the tension between "first loss/best loss" and battling, with real-life positions showing the hazards of choice that the dichotomy breeds. Let's deal with the most intractable of cases before we get to the biggest battle, Starbucks . First, there's the obvious mistakes that we have made: Bausch Health and Foot Locker . Both of these mistakes came from "Mad Money" interviews where I had tremendous faith and a history with the CEOs themselves. Joseph Papa, who has since moved on from Bausch Health, came in when the company was called Valeant Pharmaceuticals, a disgusting trap of a firm that had the good, the bad and the ugly. The good was the Bausch eye-care franchise. The bad was the Xifaxan franchise, which served as a gigantic money maker but was simply too much of the company. The ugly was its balance sheet. (It's incredible how often that Clint Eastwood movie surfaces in investing, isn't it?) Papa came on air when he took over and promised to fix the company. He told me he would offer a plan that would solve all the investigations, cut the debt load and bring about a successful turn. Considering he executed a successful turnaround at health-care firm Perrigo, I said if he could do all of those things for Valeant its stock would go from hated to worth being in the portfolio. I like teaching more than trading. It's simply a life choice. Managing a public portfolio, as mortifying as it can be, is more satisfying. Jim Cramer He got the regulatory hurdle solved and actually made Valeant into a better-run company very quickly. To signify the changes, he renamed it Bausch Health in 2018, after the eye-care company Valeant bought for $8.7 billion five years earlier. Papa proceeded to offer what I thought was a smart plan to spin off Bausch + Lomb to raise capital for a big refinancing and to solve the balance sheet once and for all. It made so much sense I bought into it. I had come to respect Papa despite the opprobrium that had been heaped on him for successfully fending off Mylan's hostile takeover bid for Perrigo , thereby making millions for himself while doing so. Papa spun off Bausch + Lomb and kept behind enough ownership in the standalone company so that when the spinoff stock appreciated, he could sell shares over time. The money raised from the sales would help Papa get rid of all the Bausch Health debt that would mature early while chipping away at the rest in good fashion. But by May 2022, the initial public offering market had fallen apart and the Bausch + Lomb spinoff — expected to be priced between $21 and $24 per share — couldn't do better than $18. It was viewed as a bust that couldn't raise enough money to make a difference. That sunk the parent, as did a surprising verdict by a federal judge that left the patent protection of Xifaxan, its principal drug, in doubt. Next thing you know, seemingly in a matter of weeks, the stock had been cut by almost two-thirds. It was a breathless decline made even more difficult by Bausch Health losing the ability to divest any other products, including those of Solta Medical, a very good skin-care division that was, unfortunately, too dependent on China. Almost immediately we were sunk. If we were a hedge fund and Karen Cramer were in charge, it would have been sold almost immediately. We thought the IPO market would come back, and Bausch Health would win the lawsuit and all would be back on track. But at this point Papa left — he now runs the disgraced Emergent BioSolutions — and the new team went silent. We were trapped. Our battle has failed, demonstrated by how Bausch Health recently won the case against patent challenger Norwich Pharmaceuticals, causing the stock to jump up to where we sold some at a loss in February . Now it is time to admit that there isn't much to save here, and we need the slot to buy something better and just accept defeat. Foot Locker, a smaller position, had a similar genesis. Mary Dillon, a star at Ulta Beauty , took over Foot Locker and offered an excellent plan for a couple-of-year turnaround. She fleshed it out on "Mad Money" and accompanied it with a huge buy of stock in the open market, usually viewed by the market as a bullish sign of confidence . I knew Foot Locker was challenged, but it didn't seem to be more challenged than Ulta. In reality, it was. We got caught early on. There was not one but two instances where the stock cratered. It all happened so fast — from May to August of 2023 — that we were in disbelief that she couldn't do more immediately to right the ship. At my hedge fund, it would have been booted at $25, down from $41, and forgotten about. For the Trust, we held on, thinking that it couldn't be this bad. It was. Dillon put forward a smart plan to get out of losing stores as fast as possible while keeping the winning locations then remodeling them. After the stock traded in the high teens for weeks between August and October, it began a climber higher. It seemed, at first, like we were home free. But when it got to the $30s per share, she told Wall Street that the sneaker retailer was now on track to reach its operating profit target in 2028 , two years later than planned. That left us aghast. Nothing has worked since then, and we are debating moving on. Once again, it's the spot we need to bring in a new name. What keeps us in these troubled two stocks? Former Club holdings Emerson Electric and Qualcomm . We bought Emerson after meeting with management and deciding that it was the best way to play the improvement of the electric grid — an investment theme we like because of data center growth and an influx of government infrastructure spending. Emerson quickly missed two quarters and then did the unthinkable: It gave us a hostile takeover. My experience with hostile takeovers is extremely negative, and Emerson's bid for National Instrument, a test and measurement company, seemed completely wrongheaded. Two misses plus a hostile made it imperative that we leave. We did so in early December 2023 , around the time we were building a position in Eaton Corp., a much better alternative. That said, we watched Emerson get a quarter right after winning the hostile, and the stock shot up $15 higher without us. I grew furious and started the second-guessing act — the woulda, shoulda, coulda that Karen Cramer banned us from indulging in. Then there was Qualcomm. CEO Cristiano Amon told us a great story of diversifying away from cellphones and toward autos. But that never happened, and he had two misses so we bolted in May 2023 . A few months later, we bought a different chipmaker in Broadcom , which has been a terrific stock. But Qualcomm dismissed us with a rocket-like charge that caused a sickening taste. It amazed me. How could Qualcomm turn without any visible sign of earnings power given that it was linked to the declining area of cellphones? Didn't matter. People lapped it up, and the stock soared without us. Understand these two have caused me to second-guess our second-chance rule. It was too forgiving to have had a place at my old hedge fund. But for a non-hedge fund, it seemed realistic and even helpful, as it left behind the first loss/best loss doctrine. Starbucks quandary Now along comes Starbucks, long a favorite investment of mine, with a new CEO, Laxman Narasimhan, who was handpicked by the coffee chain's longtime leader Howard Schultz. Narasimhan was named incoming CEO shortly after we started our Starbucks position in August 2022. I liked Narasimhan. He had been incredibly successful at Reckitt Benckiser and seemed like he could work magic at Starbucks, which had fallen behind under former CEO Kevin Johnson and then turned to Schultz as chief executive for a third time until a better one could be found. Hailing from the world of tech, Johnson oddly failed to address key tech questions involving throughput, cold brew and afternoon rushes, as well as mobile order and pay. Plus, he had not seen serious challenges to Starbucks' business in China, such as Luckin Coffee and others, that appeared out of nowhere. Narasimhan addressed these issues head on, or so it seemed, after officially taking over in March 2023. But lately, it's been one guidance cut after another, and the stock has had a sickening decline. I understood the problems in the fall, when pro-Palestine protests — which at times featured violence — targeted the company amid claims that Starbucks was a Jewish company despite having no ties to Israel. Now keep in mind that Starbucks is a worldwide company with almost 39,000 stores, with slightly less than half in the U.S. I couldn't argue with what seemed like a natural disaster and wasn't able to assess the real damage. I accepted it and thought that this too shall pass even as I resented the subtle downgrade leaked via different brokers. What I didn't know was the guide downs — in the $100s to high $90s per share — were just the tip of the iceberg. Now, again, first-loss thinking would have caused me to bail. But Emerson and Qualcomm made me think twice. After all, Starbucks is an incredibly resilient brand that has been repeatedly tested and succeeded. How could it not this time? The stock continued to slide, and I had no idea what was going on. We didn't buy any when it traded in the mid-$80s per share, and I was critical of myself for that when the stock jumped to $89. We had no new ammo for battle, so I just accepted that we were not going to have a better cost basis for what I thought was the inevitable climb back. That all ended with the quarter Starbucks reported last week. I had hoped it would get at least somewhat better, but the conference call was disastrous. It was otherworldly how bad it really was. I can count so many obvious failures, such as partially blaming the weather for weak same-store sales when rivals "across the street" had positive same-store sales, or the positive service answers and the promises that seemed so empty. All played out and more in my interview the next day with Narasimhan, which was, quite simply, a total debacle. So, here we are again with another Bausch or Foot Locker. Or is it? Isn't this still a brand name with a good balance sheet, unlike those two? Isn't this a resilient company? Should we buy more? We are restricted, but right now this is a nearly $83 billion company — one that could be bought by a PepsiCo or a Nestle , or one that could have an activist join quite quickly, with Elliott Management being the obvious contender. A third path: Perhaps Schultz could be brought back in to advise, although that would be difficult because he has resigned from the board. But the board lacks operators so I don't know what else they can do. No matter what — takeover, activist or Schultz stepping in to advise — the stock would go higher. However, unless something happens, I think it would go lower. I doubt improvement is in the cards anytime soon because I believe the "triple shot" reinvention plan is so superficial and lacking in rigor or accountability that I can see the stock shrinking to the $60s if nothing is done. This all leaves me to think that the odds the board does nothing seem slim, especially after that interview. Any sign the board is moved to act will be viewed incredibly positively. Any sign of an activist, and you can expect a much different Starbucks. Right now, we are standing pat. I think this one is more like Qualcomm and Emerson than Foot Locker and Bausch. I know that is a thin reed to cling to, but it is all I know to do. That's where we are — waiting, watching and hopeful. (Jim Cramer's Charitable Trust is long SBUX, BHC and FL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. A Starbucks store is seen in Jinan, East China's Shandong province, March 28, 2023. CFOTO | Future Publishing | Getty Images
Ex-GOP Rep. Ken Buck says he wanted to leave Congress 'about three weeks' after he arrived: 'It took me a long time to figure out how to get out of this place' 2024-05-05 19:28:54+00:00 - Onetime Rep. Ken Buck didn't have a very good impression of Capitol Hill upon his arrival in 2015. Buck told The New York Times that he wanted out of Congress "about three weeks" into the role. But the ex-congressman remarked that it took him a while to map out a plan to leave the House. NEW LOOK 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 Former Rep. Ken Buck has not been shy about calling out what he says is the highly dysfunctional nature of Congress. The Colorado Republican, who was first elected to the House in 2014 and resigned in March after declining to seek reelection this fall, has also been critical of the GOP in how they've handled their majority status in the lower chamber, recently telling The Washington Post that he got "more good work done" when Democrats were in charge. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .