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Former Secret Service agent sues New York Post and Daily Mail over Hunter Biden claim 2024-04-30 17:22:00+00:00 - A former Secret Service agent sued two news organizations for defamation Tuesday and accused them of publishing stories based on fabricated text messages that he says falsely linked him to Hunter Biden. Robert Savage, a 25-year veteran of the U.S. Secret Service and the Special Agent in Charge of the agency’s Los Angeles Field Office from 2015-2017, filed the lawsuits in New York against the New York Post and two of its reporters, and the owner and publisher of the Daily Mail. Savage alleged that the reporters and publications recklessly disregarded information that the text messages, which came from a laptop that purportedly belonged to Hunter Biden, were fabricated. Despite that, they published articles and tweets in 2021 and 2023 that suggested Savage communicated with and met and met with Biden in Los Angeles. “Rob has not and has never met Hunter Biden, does not know Hunter Biden, has no connection with Hunter Biden, and has never corresponded with Hunter Biden,” Savage’s attorney, Mark Goidell, told NBC News. He added that Savage was "flabbergasted by the false reporting” and that the former agent was filing the lawsuits out for concern for his own well-being and that of his family and business. “I am fully convinced that the New York Post and the Daily Mail were aware that their factual allegations were false and that the text messages they attributed to Rob were fabricated” Goidell said. He accused the new organizations of publishing the stories to “sensationalize their publications” and increase revenue. A representative for the New York Post declined to comment. The owner and publisher of the Daily Mail did not immediately respond to requests for comment by telephone and email. James Comer, the Republican chairman of the House Oversight Committee, which has investigated Biden, appeared to reference the text messages in an interview with Fox News in 2023. “There are numerous instances where the Secret Service came and tried to bail Hunter out when he was in a jam,” Comer said. “When he was in California and getting in all kinds of trouble, getting kicked out of a very exclusive hotel there.” A spokesperson for Comer declined to comment. In a deposition to the House Oversight Committee conducted under oath in February, Hunter Biden denied knowing Savage or meeting with him. “There is a fabricated conversation between me and a supposed Secret Service agent in a hotel room in Los Angeles” Biden said. “He has never met me, he has never had any conversation with me." The text messages were part of a collection of data from an Apple computer that the owner of a repair shop in Wilmington, Delaware said a man he believes was Hunter Biden left in his store 2019. Data from the laptop ended up in the possession of allies of former President Donald Trump, including Rudy Giuliani and Steve Bannon, and was given to conservative news outlets and later NBC News and other media organizations. The lawsuits state that the telephone number associated with the texts was from a one-use voice over internet provider that was not associated with Savage. The lawsuits claim that the stories resulted in significant damage to Savage’s reputation and emotional distress, due to “threats to his life” as well as loss of contracts and other business opportunities. The purported text message exchange has been a focus of law enforcement officials, federal prosecutors and Republicans in Congress. In March 2022, Savage was visited at his home by an FBI agent and an IRS agent who said they wanted to ask him questions about his association with Hunter Biden and the laptop. Savage was also served with a grand jury subpoena from the U.S. Attorneys Office in Delaware, which later charged Biden with tax and gun charges. NBC News obtained security footage of the interaction, copies of the business cards left by the agents and a copy of the subpoena. The IRS agent identified himself as Joseph Ziegler, who testified as a whistleblower to a House committee investigating Hunter Biden in 2023. Ziegler alleged that the Department of Justice prosecutors limited his investigation of Hunter Biden, a charge that DOJ officials denied. Ziegler’s attorney declined to comment. Goidell said that the law enforcement agencies appear to have ended their investigations of the alleged text exchanges between Savage and Biden. “Rob was extremely cooperative and demonstrated to the agents why and how the allegations were false and fabricated,” he said. “They were apparently satisfied that Rob was truthful because there has been no additional contact from any law enforcement agency.” The FBI, the IRS, and the office of Special Counsel David Weiss, the former U.S. Attorney from Delaware who is investigating, declined to comment. Savage was named in a lawsuit between a fashion designer and “real housewife” Erika Girardi, that included an allegation that savage was bribed to wrongfully investigate the designer for credit card fraud. Savage denied the allegation, and earlier this month a federal judge said he plans to dismiss the claim against Savage in a tentative order to dismiss.
Criminal schemes targeting U.S. seniors account for $3.4 billion in reported losses, FBI says 2024-04-30 17:08:00+00:00 - Washington — Americans over 60 years of age fell victim to so-called elder fraud crimes more frequently last year than during any other year and accounted for an estimated $3.4 billion in total reported losses, according to a newly released FBI report. Reports of criminal schemes targeting seniors in the U.S. increased by 14% between 2022 and 2023, federal investigators said, warning that investment scams in which victims are enticed into transferring money to fraudulent financial institutions are the costliest to the elderly. In all, over 101,000 complaints of fraud perpetrated against individuals over 60 years of age were filed to federal law enforcement last year, the most of any age group throughout the country. FBI officials said Tuesday the new numbers were "astonishing" and warned that as Americans witness one of the "greatest transfers of generational wealth," the nation's senior citizens are the most vulnerable. There were 5,920 individuals over 60 who lost more than $100,000 as a result of criminal fraud and federal trends last year, demonstrating that seniors are increasingly being targeted and falling victim, the report said. In many cases, victims are coerced into authorizing payments to the criminal scammers, draining their bank accounts under false pretenses. Speaking to reporters on Tuesday, FBI officials urged American financial institutions to do more to help elderly victims from following through on those money transfers. "We need financial institutions to step up and put in precautions…to help their customers to stop being victims of crime," the officials said. The officials said Tuesday they hoped the new report will both shine a light on fraud schemes and prevent future victims from falling prey to illegal scammers. Education and "tough conversations" with America's senior populations will be key to these prevention efforts, they said, highlighting that the earlier fraud crimes are reported, the better chance law enforcement has at preventing money transfers and stopping criminals before they complete their schemes. A majority of elder fraud scams go unreported to law enforcement by the victims, which officials have said makes it difficult to quantify the total impact of the crimes nationwide. AARP estimated in a 2023 study that $28.3 billion is lost to elder fraud scams each year, 72% of which is taken by individuals who are known to the victims. On Friday, a California man was arrested after investigators said he was allegedly trying to pick up $35,000 from two seniors who had previously fallen victim to his elder fraud scheme, which involved phishing attacks and two individuals who pretended to be federal agents. Investigators said Tai Su was just one component of a large criminal enterprise that disguised itself as a Microsoft support system and a financial institution. The hackers would first gain access to the victims' computers through phishing scams and then would convince the seniors to withdraw tens of thousands of dollars from their bank accounts. Su now faces federal charges and made an initial appearance in court on Monday.. According to the FBI's report released on Tuesday, tech support scams remain the most common form of elder fraud crime. But victims are not just being targeted via technical avenues. According to the FBI, romance scams and those involving individuals posing as family members are also on the rise. In 2023, law enforcement received over 6,700 reports of romance scams targeting individuals over the age of 60, costing victims nearly $357 million. A federal indictment unsealed Monday in New Jersey charged 16 individuals tied to a so-called "grandparent scam" in which the alleged fraudsters operated call centers in the Dominican Republic to victimize hundreds of Americans by posing as grandchildren asking for money. Investigators said Tuesday they've seen a shift in volume from scammers operating inside the U.S. to international criminal organizations, including those located in India, Laos and Cambodia.
US poised to ease restrictions on marijuana in historic shift, but it’ll remain controlled substance 2024-04-30 17:04:59+00:00 - WASHINGTON (AP) — The U.S. Drug Enforcement Administration will move to reclassify marijuana as a less dangerous drug, The Associated Press has learned, a historic shift to generations of American drug policy that could have wide ripple effects across the country. The proposal, which still must be reviewed by the White House Office of Management and Budget, would recognize the medical uses of cannabis and acknowledge it has less potential for abuse than some of the nation’s most dangerous drugs. However, it would not legalize marijuana outright for recreational use. The agency’s move, confirmed to the AP on Tuesday by five people familiar with the matter who spoke on the condition of anonymity to discuss the sensitive regulatory review, clears the last significant regulatory hurdle before the agency’s biggest policy change in more than 50 years can take effect. Once OMB signs off, the DEA will take public comment on the plan to move marijuana from its current classification as a Schedule I drug, alongside heroin and LSD. It moves pot to Schedule III, alongside ketamine and some anabolic steroids, following a recommendation from the federal Health and Human Services Department. After the public comment period and a review by an administrative judge, the agency would eventually publish the final rule. The proposal will be formally signed by Attorney General Merrick Garland, whose agency has ultimate oversight of the DEA, according to another person familiar with the process who spoke on the condition of anonymity to discuss internal deliberations. Garland’s signature throws the full weight of the Justice Department behind the move and appears to signal its importance to the Biden administration. It comes after President Joe Biden called for a review of federal marijuana law in October 2022 and moved to pardon thousands of Americans convicted federally of simple possession of the drug. He has also called on governors and local leaders to take similar steps to erase marijuana convictions. “Criminal records for marijuana use and possession have imposed needless barriers to employment, housing, and educational opportunities,” Biden said in December. “Too many lives have been upended because of our failed approach to marijuana. It’s time that we right these wrongs.” The election year announcement could help Biden, a Democrat, boost flagging support, particularly among younger voters. Biden and a growing number of lawmakers from both major political parties have been pushing for the DEA decision as marijuana has become increasingly decriminalized and accepted, particularly by younger people. A Gallup poll last fall found 70% of adults support legalization, the highest level yet recorded by the polling firm and more than double the roughly 30% who backed it in 2000. The DEA didn’t respond to repeated requests for comment. Schedule III drugs are still controlled substances and subject to rules and regulations, and people who traffic in them without permission could still face federal criminal prosecution. Some critics argue the DEA shouldn’t change course on marijuana, saying rescheduling isn’t necessary and could lead to harmful side effects. Jack Riley, a former deputy administrator of the DEA, said he had concerns about the proposed change because he thinks marijuana remains a possible “gateway drug,” one that may lead to the use of other drugs. “But in terms of us getting clear to use our resources to combat other major drugs, that’s a positive,” Riley said, noting that fentanyl alone accounts for more than 100,000 deaths in the U.S. a year. On the other end of the spectrum, others argue marijuana should be treated the way alcohol is. Last week, 21 Democrats led by Senate Majority Leader Sen. Chuck Schumer of New York sent a letter to DEA Administrator Anne Milgram and Attorney General Merrick Garland arguing marijuana should be dropped from the controlled-substances list and instead regulated like alcohol. “It is time for the DEA to act,” the lawmakers wrote. “Right now, the Administration has the opportunity to resolve more than 50 years of failed, racially discriminatory marijuana policy.” Federal drug policy has lagged behind many states in recent years, with 38 having already legalized medical marijuana and 24 legalizing its recreational use. That’s helped fuel fast growth in the marijuana industry, with an estimated worth of nearly $30 billion. Easing federal regulations could reduce the tax burden that can be 70% or more for businesses, according to industry groups. It could also make it easier to research marijuana, since it’s very difficult to conduct authorized clinical studies on Schedule I substances. The immediate effect of rescheduling on the nation’s criminal justice system would likely be more muted, since federal prosecutions for simple possession have been fairly rare in recent years. But loosening restrictions could carry a host of unintended consequences in the drug war and beyond. Critics point out that as a Schedule III drug, marijuana would remain regulated by the DEA. That means the roughly 15,000 cannabis dispensaries in the U.S. would have to register with the DEA like regular pharmacies and fulfill strict reporting requirements, something that they are loath to do and that the DEA is ill equipped to handle. Then there’s the United States’ international treaty obligations, chief among them the 1961 Single Convention on Narcotic Drugs, which requires the criminalization of cannabis. In 2016, during the Obama administration, the DEA cited the U.S.’ international obligations and the findings of a federal court of appeals in Washington in denying a similar request to reschedule marijuana. ___ Goodman reported from Miami, Mustian from New Orleans. AP writer Colleen Long contributed.
Why Trump’s abortion problem is suddenly back with a vengeance 2024-04-30 17:02:17+00:00 - In March 2016, as Donald Trump positioned himself as the frontrunner for his party’s presidential nomination, the then-candidate appeared on MSNBC and talked about his perspective on abortion policy. Chris Matthews specifically asked the Republican whether those who terminate pregnancies should be punished. “The answer is that there has to be some form of punishment,” Trump replied. When the host clarified, “For the woman?” the future president added, “Yes, there has to be some form.” Not surprisingly, the candidate and his political operation tried to walk that back soon after, and Trump has generally avoided repeating the line in the eight years that followed. It’s not unusual for Democrats to continue to exploit the on-air comments he made on MSNBC more than eight years ago, but that’s largely because (a) the rhetoric was so extreme; and (b) he hasn’t given his opponents similar material to work with since. That is, until now. Time magazine sat down with Trump twice recently and has now published a new report that shed light on the presumptive GOP nominee’s vision for a second term. What emerged in two interviews with Trump, and conversations with more than a dozen of his closest advisers and confidants, were the outlines of an imperial presidency that would reshape America and its role in the world. ... He would let red states monitor women’s pregnancies and prosecute those who violate abortion bans. This might sound like an exaggeration. It’s not. Keep in mind, as of a few weeks ago, Trump acted as if he’d solved his abortion problem once and for all: The former president effectively said he’d let every state do whatever they pleased. It was his way of trying to avoid responsibility for the mess he helped create. But the interview with Time magazine forced the Republican to consider some of the practical consequences of his latest position on reproductive rights. From the article: More than 20 states now have full or partial abortion bans, and Trump says those policies should be left to the states to do what they want, including monitoring women’s pregnancies. “I think they might do that,” he says. When I ask whether he would be comfortable with states prosecuting women for having abortions beyond the point the laws permit, he says, “It’s irrelevant whether I’m comfortable or not. It’s totally irrelevant, because the states are going to make those decisions.” In other words, if Republican officials in red states start monitoring women’s pregnancies and prosecuting women, Trump has no interest in intervening. He’d simply allow those GOP officials to do as they pleased, regardless of the real-world consequences for the women affected by the far-right agenda. In the same interview, Time asked Trump whether women should be able to get the abortion pill mifepristone. The former president he has “pretty strong views on that,” but he refused to share them. Time added, “Well, this is a big question, Mr. President, because your allies have called for enforcement of the Comstock Act, which prohibits the mailing of drugs used for abortions by mail. The Biden Department of Justice has not enforced it. Would your Department of Justice enforce it?” Trump replied that he’d issue “a big statement” on the matter “over the next 14 days.” Two weeks later, the magazine followed up. He again refused to elaborate. “Donald Trump’s latest comments leave little doubt: if elected he’ll sign a national abortion ban, allow women who have an abortion to be prosecuted and punished, allow the government to invade women’s privacy to monitor their pregnancies, and put IVF and contraception in jeopardy nationwide,” Biden campaign manager Julie Chavez Rodriguez said in a statement. “Simply put: November’s election will determine whether women in the United States have reproductive freedom, or whether Trump’s new government will continue its assault to control women’s health care decisions.”
Nationwide stops lending on some flood-risk properties 2024-04-30 15:32:00+00:00 - Britain’s biggest building society has stopped granting mortgages on some properties where there is a high risk of flooding but said this affected only “a very limited number” of homes. Nationwide’s head of property risk, Rob Stevens, said the lender used mapping technology to identify which homes were vulnerable to flooding, and it would decline to grant a mortgage to buy a property it deemed to be at high risk. His comments in an interview with Bloomberg could spark renewed debate about what will happen when the UK government’s subsidised flood insurance scheme ends in 15 years’ time. A fortnight ago it emerged that UK weather-related home insurance claims had hit a new record, with flooding accounting for half of last year’s £573m total bill. Some big mortgage lenders, including Barclays and NatWest, have previously made clear they will still grant mortgages for properties where there is judged to be a high risk of flooding, provided that adequate home insurance is in place. However, a former Barclays chief executive has warned that “further consideration would need to be given” regarding the suitability of granting mortgages on high-risk properties in future years, particularly once the official Flood Re subsidised cover scheme ends in 2039. HSBC has said it was “critical” that Flood Re was extended. Stevens told the Guardian that “there will be rare occasions where we are unable to lend due to the associated risk of lending on a specific property”. But he added that Nationwide continued to lend on properties that were designated as flood risks, and that it had not pulled any mortgage offers. All its checks around flooding were done before an offer was made, so that the borrower was aware upfront. Nationwide said that, like all home loan providers, it needed to lend responsibly and therefore there would be some properties it could not grant mortgages on, “albeit when it comes to flooding, this is only on a very limited number”. Bloomberg reported Stevens saying that, “if we’re doing a 40-year mortgage term and there’s something there that I know could fundamentally change for the customer, I can’t not know that”, adding that he had personally phoned some buyers to warn them that their prospective homes were at high risk of flooding. However, Stevens told the Guardian that, “in the overwhelming majority of cases” it was able to lend on homes even where issues had been identified, assuming that mitigating factors had been put in place – for example, flood defences. Nationwide did not provide details of how many homes might be affected. Policies in this area will vary from lender to lender. In a letter to MPs last year, Matt Hammerstein, formerly chief executive of Barclays UK and now head of its UK corporate bank, said: “Barclays does not have a policy that restricts the availability of mortgages to borrowers in flood-risk areas – we lend irrespective of the flood-risk band.” skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Restrictions on lending would only arise because a borrower was unable, or unwilling, to obtain home insurance. Meanwhile, NatWest last year told MPs that “we do not exclude lending in any flood-risk areas”. A jump in weather-related home insurance claims last year was fuelled by a succession of storms, including Babet, Ciaran and Debi. Those who live in areas with a high risk of flooding may be able to access insurance through Flood Re, which is a joint initiative between the government and insurers offering subsidised insurance to households at the highest risk of flooding in order to make cover more affordable. Looking at disclosed data, Barclays revealed in February that just over 90% of the properties in its UK mortgage portfolio were judged to be either in a “negligible,” “very low” or “low” flood-risk band, with 1.6%judged to be in the moderate risk band, and 2.6% and 1.2% in the high-risk and very-high-risk bands.
NXP Semiconductors Will Set a New High Soon: $300 in Sight 2024-04-30 15:26:00+00:00 - Key Points NXP Semiconductors struggled in Q1, but results and guidance suggest that its soft-landing approach works. Analysts are leading the market to new highs, which may be reached soon. Cash flow and capital returns aid the outlook for higher share prices. 5 stocks we like better than NXP Semiconductors NXP Semiconductors NASDAQ: NXPI is trending higher and on track to hit the $300 level. The company’s diversified business, position in the industrial chip market, and pivot back to growth are why. It will take a little more time for end-market normalization to turn into a business tailwind, but the signs are good that it is happening, and analysts are taking note. The first significant analyst revision following the Q1 release is from Bank of America. Analyst Vivek Arya highlights the company’s soft-landing management approach and takes note of the value. The stock is trading at only 18X its earnings outlook, which is expected to be the low point in the cycle. Peers such as Texas Instruments NASDAQ: TXN and Analog Devices NASDAQ: ADI trade closer to 40X, suggesting the value is deep. Mr. Arya maintained a Buy rating and a $300 price target, which is significant. The $300 target is the highest on Wall Street, issued by numerous firms, and 15% above the post-release price action. Get NXP Semiconductors alerts: Sign Up The analysts’ consensus price target reported by Marketbeat.com lags the price action now that results are in, but the trend leads the market. The consensus is up 28% compared to last year and 1.75% in the month ahead of the report, with 90% of the fresh targets above consensus. That trend is unlikely to change. Diversified Business Sustains Strength at NXP Semiconductors NXP Semiconductors Today NXPI NXP Semiconductors $256.19 +9.06 (+3.67%) 52-Week Range $161.23 ▼ $264.26 Dividend Yield 1.58% P/E Ratio 23.92 Price Target $242.29 Add to Watchlist NXP Semiconductors struggled in Q1 , but its diversified business model and position in the industrial chip landscape helped it sustain its strength. The company reported $3.13 billion in net revenue for a gain of 0.3% over last year. The top line is as-expected on strength in the Industrial/IoT and Mobile segments, up 14% and 34%. Communications is down 25%, and the core Automotive business is down 1%. Automotive is worth 57% of the Q1 revenue and is expected to return to growth by fiscal year-end. Margin news is mixed, with gross and operating margins moving in oppositive directions, but the net results are relatively flat compared to last year. The salient point is that GAAP earnings of $3.24 are up 150 bps from last year due to margin resilience, outpacing the top-line growth and $0.06 ahead of the consensus. The strength plays into the guidance, which forecasts top and bottom-line strength relative to the analysts' estimates. The guidance is favorable despite the expectation for a 5% YOY contraction in revenue. The projected $3.125 billion mid-point is ahead of the analysts' consensus, and the top end of the range allows for significant outperformance. The bottom line is also expected to be strong at $3.20 compared to $3.07. NXP Semiconductors Pays A Significant Dividend NXP Semiconductors generates ample cash flow, with the free cash flow running at 20% of the revenue in Q1. Capital returns in Q1 amounted to 90% of the free cash flow and are expected to remain solid through year-end. The Q1 payout annualizes to over 1.6% and is compounded by share buybacks. Repurchases effectively doubled the dividend yield in Q1 and helped to reduce the average share count by nearly 1%. The price action in NXPI stock is showing a trend-following signal. The rebound began a week before the earnings release, with the market advancing from the 150-day EMA. The market is wrestling with resistance at an all-time high now but is indicated higher by the stochastic. A move to new highs would trigger a buy signal in the MACD, raising the strength of the signal from buy to strong buy. In that scenario, this stock could increase to the $300 region by fall, possibly higher if the analysts continue raising their targets. Before you consider NXP Semiconductors, 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 NXP Semiconductors wasn't on the list. While NXP Semiconductors currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Hilton Demonstrates Asset Light is Right for Investors 2024-04-30 15:08:00+00:00 - Key Points Global hospitality giant Hilton Worldwide operates more than 7,600 hotels and resorts but owns just 3%, franchising the other 97%. Hilton reported a Q1 2024 EPS beat by 12 cents as revenues rose 12.2% YoY, and its pipeline hit record highs with 127,000 new rooms and 650 new properties. Hilton Honors loyalty program has nearly 190 million members worldwide. 5 stocks we like better than Hilton Worldwide Hilton Worldwide Holdings Inc. NYSE: HLT is a global hospitality company operating over 7,600 hotels and resorts in 126 countries under more than 20 different brands. The consumer discretionary sector giant runs an asset-light business, owning only 3% of its hotels and franchising the other 97%. Hospitality and lodging struggled during the pandemic and is one of the last industries to experience positive normalization. But it has bounced back with a vengeance; airlines, cruise ships, casinos and hotels are thriving in the post-pandemic era from the travel boom after years of pent-up demand. Get Hilton Worldwide alerts: Sign Up The Asset Light Hotel Industry Model The hotel industry has transformed from the days of brands owning and operating their hotels to just operating or even leasing their brand. The major hospitality players, including Marriott International Inc. NASDAQ: MAR, Hyatt Hotels Co. NYSE: H and Choice Hotels Inc. NYSE: CHH, run under an asset-light franchise model. This makes them agile, with very little to tie them down as they continue to ramp up pipelines of hundreds of thousands of rooms to build, convert and upgrade. Capex is low and profits are high under the franchise model. The actual owners of the property are often real estate investment trusts (REITs), institutions and even individual investors. Brands for Every Demographic Hilton operates 22 brands that accommodate different price ranges, destinations and income demographics. Its essential, budget-friendly lower-end accommodations include the Hilton Garden Inn, Hampton, Tru and Spark, which often include free complimentary breakfasts. The next step up is the Embassy Suites, Homewood Suites and extended stay brand LivSmart Studios. Home2 Suites also allow for pets and feature a kitchen and full-sized fridge. Its local neighborhood and urban hotels include Canopy, Tempo and Motto. Hilton's premium brands include its namesake Hilton Hotels & Resorts and DoubleTree, and its bespoke designer hotels include the CURIO and TAPESTRY collections. The high-end luxury brand hotels and resorts include the Waldorf Astoria, LXR, Conrad and Signia. Expansion Pipeline Is the Metric to Watch You may have noticed that many hotel giants lowered their forward revenue guidance, but the market still took shares higher. This is likely due to the development pipeline. Hotels are known to lowball estimates, so the expansion pipeline is the key metric to determine potential growth prospects. For example, Marriott lowered their Q4 2023 EPS consensus estimate from $2.19 to between $2.04 and $2.13, yet shares surged to all-time highs in the weeks following its Q3 2023 earnings release. That’s because it has one of the largest pipelines with 3,400 properties and 573,000 rooms, up 15% YOY. Competitor Hyatt has a pipeline of 650 properties and 127,000 rooms. The pipeline isn't new construction. It can also include remodels, upgrades, conversions and new properties joining under the brand umbrella. Daily Bull Flag HLT formed a daily bull flag pattern. The flagpole peaked at $215.79, forming parallel descending upper and lower trendline lines. HLT accelerated to the downside heading into its earnings release but triggered a daily market structure low (MSL) breakout into the release at $197.72, which caused a gap to $210.34. The daily relative strength index (RSI) peaked at the 50-band and is stalling for a potential bounce or oscillation back down. Pullback support levels are at $197.72, $186.83, $172.62 and $165.29. Earnings Momentum Continues Hilton Worldwide Today HLT Hilton Worldwide $197.28 -4.88 (-2.41%) 52-Week Range $134.43 ▼ $215.79 Dividend Yield 0.30% P/E Ratio 42.89 Price Target $207.59 Add to Watchlist Development Pipeline Hilton reported a Q1 2024 EPS of $1.53, beating analyst estimates by 12 cents. Revenues rose 12.2% YOY to $2.57 billion, beating $2.61 billion consensus estimates. Revenue per available room (RevPAR) rose 2%, which was impacted by inclement weather, holidays and renovations. In the quarter, Hilton opened 106 hotels with 16,800 rooms leading to 14,200 net additions. Hilton is acquiring Graduate Hotels brand of 35 franchised hotels. It also expanded its luxury portfolio with a controlling stake in London-based Sydell Group, which owns the Nomad hotel brand. This marks its debut in the luxury lifestyle segment. Hilton saw great momentum across signings, starts and openings in the pipeline. The development pipeline added 29,800 rooms for a total of 3,380 hotels and 472,300 rooms in 119 countries. Hilton added 31 new countries and territories that is hasn't had any properties on beforehand. There are 229,700 rooms under construction, and 267,900 rooms are international. The record pipeline growth should result in a net unit growth of 6% to 6.% for the full year. Downside Guidance Hilton issued Q2 2024 EPS guidance of $1.80 to $1.86 versus $1.87 consensus estimates. Full-year 2024 EPS is expected between $6.89 to $7.03 versus $7.10 consensus estimates. Systemwide comparable RevPAR is expected to rise 2% to 4%. Adjusted EBITDA is expected between $3.375 billion to $3.425 billion. CEO Commentary Hilton CEO Chris Nassetta admitted the 2% RevPAR was on the low end of their guidance, however, leisure transient RevPAR exceeded expectations despite tough YOY comps. The business transient recovery was steady as RevPAR rose 5% YOY. Corporate groups continue to grow as a percentage of the booking with windows continues to lengthen. System-wide construction starts improved 45% YOY as half its pipeline us under construction. Hilton has more rooms under construction than any other hotel company. Nassetta said, “To provide even more personalized experiences for our guests, we continue to leverage our industry-leading technology platforms. From a digitally enabled concierge for our luxury brands, to the ability to choose your room from a floor plan and control your in-room entertainment from your mobile device, we continue to fully integrate the digital experience.” The Hilton Honors loyalty program has nearly 190 million members worldwide. Hilton analyst ratings and price targets are at MarketBeat. Before you consider Hilton Worldwide, 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 Hilton Worldwide wasn't on the list. While Hilton Worldwide currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
In Reversal, Expert Panel Recommends Breast Cancer Screening at 40 2024-04-30 15:00:13+00:00 - Citing rising breast cancer rates in young women, an expert panel on Tuesday recommended starting regular mammography screening at age 40, reversing longstanding and controversial guidance that most women wait until 50. The panel, the U.S. Preventive Services Task Force, finalized a draft recommendation made public last year. The group issues influential advice on preventive health, and its recommendations usually are widely adopted in the United States. In 2009, the task force raised the age for starting routine mammograms to 50 from 40, sparking wide controversy. At the time, researchers were concerned that earlier screening would do more harm than good, leading to unnecessary treatment in younger women, including alarming findings that lead to anxiety-producing procedures that are invasive but ultimately unnecessary. But now breast cancer rates among women in their 40s are on the rise, increasing by 2 percent a year between 2015 and 2019, said Dr. John Wong, vice chair of the task force. The panel continues to recommend screening every two years for women at average risk of breast cancer, though many patients and providers prefer annual screening.
8 Daily Newspapers Sue OpenAI and Microsoft Over A.I. 2024-04-30 14:51:27+00:00 - Eight daily newspapers owned by Alden Global Capital sued OpenAI and Microsoft on Tuesday, accusing the tech companies of illegally using news articles to power their A.I. chatbots. The publications — The New York Daily News, The Chicago Tribune, The Orlando Sentinel, The Sun Sentinel of Florida, The San Jose Mercury News, The Denver Post, The Orange County Register and The St. Paul Pioneer Press — filed the complaint in federal court in the U.S. Southern District of New York. All are owned by MediaNews Group or Tribune Publishing, subsidiaries of Alden, the country’s second-largest newspaper operator. In the complaint, the publications accuse OpenAI and Microsoft of using millions of copyrighted articles without permission to train and feed their generative A.I. products, including ChatGPT and Microsoft Copilot. The lawsuit does not demand specific monetary damages, but it asks for a jury trial and said the publishers were owed compensation from the use of the content. The complaint said the chatbots regularly surfaced the entire text of articles behind subscription paywalls for users and often did not prominently link back to the source. This, it said, reduced the need for readers to pay subscriptions to support local newspapers and deprived the publishers of revenue both from subscriptions and from licensing their content elsewhere.
Boston Scientific Bucks the Medtech Slow Down and Raises Outlook 2024-04-30 14:34:00+00:00 - Key Points Boston Scientific is a diversified medical device company that was able to buck the industry slowdown in Q1 2024 and beat both top and bottom-like consensus estimates. With a Q12025 EPS of 56 cents, Boston Scientific beat analyst expectations by 5 cents. The company raised its Q2 2024 and full-year 2024 guidance. 5 stocks we like better than Boston Scientific Medical device maker Boston Scientific Co.'s NYSE: BDX product portfolio encompasses a wide range of therapeutic areas, from cardiovascular, urology, and neuromodulation to endoscopy instruments and rhythm management. The medical sector company is acquiring rhythm modulation device maker Axonics Inc. NASDAQ: AXNX in the second half of 2024 as the FTC requests additional information on the deal. Boston Scientific's main competitors are medical device makers, including Medtronic plc NYSE: MDT, Stryker Co. NYSE: SYK and Abbott Laboratories NYSE: ABT. Get Boston Scientific alerts: Sign Up Product Portfolio Revenue Streams Boston Scientific has two divisions: Cardiovascular and Medical Surgery (MedSurg). In Q1 2024, 63% of revenues came from the Cardiovascular segment, with $1.872 billion. This is split between interventional cardiology (ICTx) at $652 million, Watchman at $344 million, cardiac rhythm management (CRM) at $575 million and electrophysiology (EP) at $300 million. Peripheral intervention (PI), comprised of stents, balloons and catheter sales, generated $573 million. Cardiovascular revenues rose 15.9% YoY to $2.445 billion in revenues. Under MedSurg, endoscopy generated $642 million. Urology generated $513 million. Neuromodulation generated $256 million. The MedSurg segment saw a 10.3% rise in YoY revenues to $1.413 million. Daily Ascending Triangle BSX formed a daily ascending triangle breakout pattern. The ascending trendline started at $65.52, catching all pullbacks at higher highs against the flat-top horizontal upper trendline at $69.00. The Q1 2024 EPS beat and raised guidance triggered a gap the following morning and the breakout. Shares peaked at $74.39 and established the gap fill at $72.55. The daily relative strength index (RSI) bounced through the 70-band to stall flat at the 75-band. Pullback support levels are at $70.48, $69.00, $66.80 and $64.14. Solid Q1 2024 Results Boston Scientific reported Q1 2024 EPS of 56 cents, beating analyst expectations by 5 cents. Revenues rose 13.8% YOY to $3.86 billion, beating $3.68 billion consensus estimates. Shares surged to new 52-week highs on the results and its updated raised guidance. Upside Guidance Boston Scientific issued upside guidance for Q2 2024 EPS of 57 cents to 59 cents. Revenues are expected to rise 10.5% to 12.5% or $3.98 billion to $4.05 billion versus $3.93 billion consensus estimates. Full-year 2024 EPS was raised to $2.29 to $2.34 versus $2.26 consensus estimates. Revenues are expected to rise 11% to 13% YoY to $15.8 billion to $16.1 billion versus $15.59 billion consensus estimates. CEO Insights Boston Scientific Today BSX Boston Scientific $71.87 -0.63 (-0.87%) 52-Week Range $48.35 ▼ $74.39 P/E Ratio 60.39 Price Target $75.09 Add to Watchlist Boston Scientific CEO Mike Mahoney pointed out the Q1 2024 results surpassed its internal expectations. This was driven by the nearly 90 new products that were launched globally in 2023. Operations sales rose 15% YOY in the first quarter of 2024, and organic sales rose 13%, exceeding the 9% high-end expectations. Six of its eight business units rang up double-digit gains. Mahoney shared insights on its different business units. Urology sales rose 10% operationally and organically, with double-digit growth in stone management and prosthetic urology. Endoscopy sales rose 12% operationally and 10% organically, underpinned by differentiated anchored products like AXIOS and single-use imaging products. Neuromodulation sales jumped 10% operationally but declined 1% organically. Its brain franchise grew in the high single-digits. The company received FDA approval for WaveWriter, a non-surgical back pain indication and next-gen FAST auto-dose. Peripheral intervention saw 16% operation growth and 11% organic growth in the quarter. Cardiology saw fantastic strength, growing 18% operationally and organically. Mahoney commented, "Our exceptional results this quarter were fueled by our talented global team and the strength of our diversified businesses and pipeline, including the initial U.S. launch of the FARAPULSE™ Pulsed Field Ablation System." Needham Predicted Correctly Needham had correctly guessed that Boston Scientific would beat their consensus estimate numbers several days before the earnings release. The impressive thing is that this happened despite the softness of the medical device market, as it only grew 5.3% in Q1 2024 versus 8.3% YOY in Q4 2023. They also correctly predicted that Boston Scientific would be able to bear consensus estimates and guide higher due to the new product launches combined with management's conservative guidance. Boston Scientific analyst ratings and price targets are at MarketBeat. Before you consider Boston Scientific, 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 Boston Scientific wasn't on the list. While Boston Scientific currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Seagate Technology Warns Cloud Demand is Heating Up 2024-04-30 14:10:00+00:00 - Key Points Seagate, the largest manufacturer of hard disk drives, is ushering in the next generation of high-capacity HAMR technology HDDs in the Mozaic 3+ with up to 30 TBs, doubling the capacity in the same footprint. Seagate reported a fiscal Q3 2024 EPS of 33 cents, beating consensus estimates by 4 cents, while revenues fell 11% YOY but rose 6%, and adjusted EBITDA doubled QOQ, indicating the recovery cycle may be underway. Cloud data center demand is recovering as EBITDA margins expanded to 16.8%, up from 13.9% in the year-ago period. 5 stocks we like better than Seagate Technology Data storage device manufacturer Seagate Technology Holdings plc NASDAQ: STX hasn't significantly benefitted from the artificial intelligence (AI) boom. Its computer and technology sector rival Western Digital Co. NASDAQ: WDC had a dramatic 2024 reversal of fortune as losses of 46 cents transformed into profits of 40 cents, and sagging revenues turned into a 23% YOY revenue spike. Seagate also saw a spike in its bottom line, not so much from AI but from the recovery of cloud computing demand. This impacts Seagate the most since 90% of cloud computing data centers still rely on hard disk drives (HDD) for data storage due to the larger capacity and cheaper costs compared to flash solid-state drives (SSD). Get Seagate Technology alerts: Sign Up The Evolution of HDD Technology HDD is considered a legacy technology. Even modern laptops and desktops retail computer systems are outfitted with SSDs due to their speed, reliability and non-moving parts. However, when large-scale data capacity is needed, HDDs still carry a heavy workload. Seagate has been a pioneer and innovator of HDD technology. While HDDs can't compete with the speed of NAND flash-based SSDs, they rule supreme when it comes to data capacity and cost. Seagate also produces SSDs, but they are a fraction of the HDDs. Mozaic 3+ HDDs with HAMR Technology Seagate has continued to push the capacity envelope with its HAMR technology, which is now powering its Mozaic line of HDDs. Mozaic 3+ drives can handle 3.2 petabytes of data over 6,000 hours with capacities exceeding 30 TBs and last more than seven years. Seagate's Exos 30 TB Mozaic 3+ drive for data centers nearly doubles the capacity in the same footprint. Seagate plans to ramp up capacity to 50 TBs. Daily Descending Triangle Pattern STX has a descending triangle breakout pattern on its daily candlestick chart. The descending trendline formed at $101.26, capping bounce attempts at lower highs, falling towards the lower flat-bottom trendline at $82.54, meeting at the apex point. The daily relative strength index (RSI) peaked its bounce attempt at the 50-band as it started to turn back down. Pullback support levels are at $82.54, $79.39, $74.52 and $70.31. The Recovery Cycle Appears to be Underway Seagate Technology Today STX Seagate Technology $85.91 -0.17 (-0.20%) 52-Week Range $54.47 ▼ $101.26 Dividend Yield 3.26% Price Target $94.53 Add to Watchlist Seagate reported fiscal Q3 2024 EPS of 33 cents, beating analyst estimates by 4 cents. Revenues fell 11% YoY to $1.66 billion versus $1.68 billion. However, sequential revenues rose 6% QoQ as non-GAAP EPS more than doubled sequentially. Non-HDD revenues were $178 million. Adjusted gross margins rose 250bps to 26.1%, which led to EBITDA margin expansion to 16.8%, up from 13.9% in the year-ago period. The recovery cycle is underway. Seagate provided in-line fiscal Q4 2024 guidance with EPS of 50 cents to 90 cents versus 61 cents analyst estimates. Revenues are expected to be between $1.7 billion and $2 billion versus the consensus estimates of $1.85 billion. HAMR Delays Should Result in Second-Half Surge Seagate CEO Dave Mosely mentioned a temporary slowdown hiccup in recent weeks but is making progress towards its first large CSP customer qualification. Despite the hiccup, the company still expected to ship a few hundred thousand HAMR-based Mozaic drives in the June quarter. This should meet the remaining exabyte demand through other existing products. The company plans to ramp up HAMR products with its leading hyperscale client in the second half of the year. They will remain focused on broadening out the qualified customers of Mozaic products. Mosely commented, ”We've laid out a Mozaic roadmap with a clear path to at least 50 terabyte drives that offers customers TCO and sustainability benefits, including lower power consumption and less required floor space on a per terabyte basis. We are scaling drive capacity through aerial density gains rather than adding heads and disks. As we execute on our product roadmap to 50 terabytes and beyond, we expect to incur minimal changes to our bill of material costs and maintain low capital intensity of between 4% and 6% of revenue.” Analysts Remain Optimistic Bank of America reiterated its Buy rating on Seagate with a price target of $110. Analyst Wamsi Mohan commented that despite the HAMR hiccup, they continue to see strength heading into fiscal Q4 2024. Mizuho reiterated their Buy rating with a $100 price target. Cantor Fitzgerald maintained a Neutral rating but raised its price target to $100 from $96. Barclays was skeptical and maintained its Neutral rating and $80 price target. Analyst Tom O’Malley commented, "We think that the delay is more concerning than advertised and think it odd that after a failed qualification, regardless of reason, the timeline wouldn't lengthen more significantly.” Seagate Technology analyst ratings and price targets are at MarketBeat. Before you consider Seagate Technology, 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 Seagate Technology wasn't on the list. While Seagate Technology currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
‘It’s pretty gloomy out there’: new NFU chief Tom Bradshaw fights to give food producers a better deal 2024-04-30 14:07:00+00:00 - ‘This is the first time I’ve had my lawn cut by somebody else,” says Tom Bradshaw, the new president of the National Farmers’ Union. Just over a month after being voted into the role, he admits life has become “hectic”. He is standing outside the idyllic farmhouse in rural Essex where he has lived since he was six, and the garden is all perfect flower beds and newly manicured grass. Nothing here looks hectic, but Bradshaw really is a busy man. As well as his NFU duties, he grows wheat, barley and oats on the family farm near Colchester, and also owns an equestrian centre and a contracting business that manages four nearby farms – although he admits he has stepped back from day-to-day tasks in recent years. He also has two children, aged six and five. Easter saw him juggling holiday childcare while tussling with the government over flooding support. Just days after ministers announced a flood recovery plan for those hit by January’s Storm Henk, the NFU publicly attacked the decision to limit support to farms less than 150 metres from named rivers. “We tried to sort this out behind closed doors,” says Bradshaw, who clearly prefers the diplomatic route. The government bowed to pressure and removed the restrictions but Bradshaw believes the scheme, which is limited to certain rivers, is still not enough. “We want to work with Defra to make sure money goes to those most impacted,” he says. “There shouldn’t be a geographical limit.” Henk is one of 11 named storms to have hit the UK since September 2023. The country has just had its wettest 18 months since records began in 1836, and farms have borne the brunt. Many were left underwater for months at a time, unable to plant or harvest crops, puting them under huge financial pressure. View image in fullscreen Flooded fields in West Sussex after Storm Henk hit in January Photograph: Toby Melville/Reuters Bradshaw hasn’t been spared: he lost 15% of his wheat crop this year because of the rain. But he is one of the lucky ones. He reads a message from an NFU member saying the floods have put him close to “jacking it in” and “raising the white flag”. Bradshaw adds: “Markets have collapsed, wheat, barley, rape, obviously. Many people didn’t get crops planted, and of those that did, 40% are in poor condition. It’s a pretty gloomy picture out there.” For him, protecting farmers is crucial to the country’s food security in an increasingly uncertain world. The UK produces 60% by value of the food it consumes. It is largely self sufficient in grains, and production of meat, milk and eggs is equivalent to consumption (though some high-value products are imported). But the numbers are lower for vegetables (50%) and fruit (16%). At February’s NFU conference, Rishi Sunak told farmers “I’ve got your back”, because food security was a priority. Measures included a new annual food security index, and grants worth £427m. So does Bradshaw think the government has a plan for food security? “No. I hear that food production has risen up the political agenda. I believe it has, but it’s easy to deliver the words: it’s the policies we need.” Bradshaw thinks retailers and supermarkets could do more, too. He points to recent shortages of products such as eggs and salad as a direct result of retailers ignoring farmers’ needs. “We ran out of eggs in this country because the retailers wouldn’t heed the warning that there wasn’t a viable return for members to reinvest in their businesses,” he says. The relationship between farmers and supermarkets is one of interdependence and tension. Bradshaw says farmers are at “breaking point”, with retailers asking them to meet an increasing list of requirements that are not imposed on their overseas competitors. “We are asking for core standards to be implemented within imports that match the standards of production here,” he says. “At the moment it feels like they want everything at the minimum cost.” But these aren’t the only pressures on the industry. Delays to the rollout of sustainable farming incentive (SFI) payments – the subsidies brought in to replace the EU’s basic payment scheme (BPS) subsidies – have left many farmers out of pocket. Bradshaw, who voted to remain in the EU, admits however that this picture is improving slightly, with more than 17,000 farmers signed up. There have also been much-publicised protests against a Welsh government scheme under which farmers have to give more than 20% of their land for trees and wildlife habitat in exchange for the new payment. Bradshaw says this system will not work in its current form. So with all these headwinds, who would be a farmer? It is clearly a subject Bradshaw feels passionately about. When he talks about there now being 7,000 fewer farming businesses than in 2019, his voice breaks. “We can’t let this continue,” he says, clearly emotional. We are sitting metres away from the former milking parlour where a six-year-old Bradshaw used to help his father (who still works on the farm). “Farming is just something I always wanted to do,” he says. After graduating from agricultural college in Kent, he came back to the family farm a few miles north-west of Colchester. “When I came home, aged 21,” he says, “my dad more or less handed over the chequebook and said, ‘Here you go.’” Since then he has expanded the farm contracting business and moved away from dairy farming, converting the former dairy buildings into a riding school. So, does he want his children to be farmers? “My ambition here is to have a rural farm business that they have the choice to get involved in if they want to,” he says. Voted in as president in February after two years as deputy president, he replaced the popular and plain-speaking Minette Batters, who once accused former environment minister Thérèse Coffey of being “asleep at the wheel”. View image in fullscreen Bradshaw replaced the popular, outspoken Minette Batters as NFU president. Photograph: Tayfun Salcı/Shutterstock Bradshaw is effusive about the job Batters did, but says he “can’t look to be Minette”. He also thinks the political landscape has changed since she was first president: the NFU often had to act like the opposition under Batters’s reign, because the opposition could be “so poor”. “I don’t think we need to be that political now [...] We are in different times now and we will work constructively with whoever is in power,” he says. He believes the rural vote is now up for grabs, saying members will be looking closely at all of the party manifestos. A recent Deltapoll survey suggested that the rural vote, which has been Conservative traditionally, could be moving to Labour. It found that in the 100 biggest farming constituencies, Tory support had dropped from 58% to 32%, with Labour on 36%. For now, though, it is the current government Bradshaw has to deal with. His afternoon will involve going out to bat for his 45,000-plus members in a call with environment minister Steve Barclay. And after that? A more traditional kind of batting: Bradshaw will make time for a game of cricket in the garden with his son. Executive summary Age 41 Family Married to Emily and two children aged six and five. Education Degree in agricultural business management from Imperial College at Wye; A-Levels and GCSEs at Colchester Royal Grammar School. Pay “Completely depends on the weather and if it makes the magic money tree grow.” Last holiday First family ski holiday before Christmas. Best advice he’s been given “You have two ears and one mouth - try to use them in that ratio.” Biggest career mistake “A career makes it sound like it was a plan! Being too trusting and taking people at face value.” Phrase he overuses “You would have to ask my children.” How he relaxes Family, running and hockey.
McDonald’s Trend Following Signal is an Opportunity Today 2024-04-30 13:45:00+00:00 - Key Points McDonald's had a solid Q1 despite missing analysts' estimates. Headwinds exist that will impact revenue and profitability this year. Analysts' coverage is broad and leading the market to a new high. 5 stocks we like better than McDonald's McDonald’s Corporation NYSE: MCD share price is down from its peak, but this is good news for investors. The trend in MCD stock is up, and the move to retest support at the long-term EMA is a budding trend-following entry supported by results. McDonald’s Q1 results were lackluster relative to the analysts’ forecasts, but slowing growth was expected, and the impact of the Middle East war was less than it could have been. Despite the headwinds, the company produced growth and sustained margins and continues to position itself for long-term success. The Accelerating the Arches plan is helping this consumer discretionary company gain market share and leverage for the next few years of growth. Get McDonald's alerts: Sign Up McDonald’s Mixed Results Are No Reason to Sell Stock McDonald's Today MCD McDonald's $273.04 -0.51 (-0.19%) 52-Week Range $245.73 ▼ $302.39 Dividend Yield 2.45% P/E Ratio 23.60 Price Target $318.41 Add to Watchlist McDonald’s reported mixed results relative to the consensus figures reported by Marketbeat.com. The $6.17 billion in revenue is as expected, which is no catalyst for a rally and is compounded by weaker-than-expected earnings. However, despite the weakness, the company grew by 4.6% compared to last year, and the bottom line miss was small. Systemwide restaurant sales grew by 3% on an FX-neutral basis. Comps are up 1.9% and the 13th quarter of YOY growth; comps are up 30% compared to Q1 2020, the last quarter before the impact of the COVID-19 pandemic. Internationally operated markets were the strongest segmentally, at 2.7%, followed by a 2.5% gain in the US—pricing, mix, and traffic support sales in the US and IO markets. Internationally developed markets were weakest at -0.2% as the impact of war continued. Margin news is good. The GAAP and adjusted margin were solid compared to last year, leaving earnings up on a YOY basis. GAAP earnings grew at a high single-digit pace while adjusted grew by 2%. The 2% growth lags the top line and fell short of the consensus by $0.03 but does little to alter the outlook for full-year earnings or capital returns. The company’s strongest quarters are still ahead, and trends in the core business units remain positive. McDonald’s is on the Value Menu for Income Investors McDonald's Dividend Payments Dividend Yield 2.44% Annual Dividend $6.68 Dividend Increase Track Record 48 Years Annualized 3-Year Dividend Growth 7.32% Dividend Payout Ratio 57.74% Recent Dividend Payment Mar. 15 See Full Details McDonald’s dividend strength is seen in its results and dividend history. The company is a Dividend Aristocrat verging on King with a high 2.45% yield and a low 50% payout ratio. The yield is running at the high end of the historical range, and the valuation is low, suggesting a deep-value opportunity in this desirable name. The stock has traded at an average of 25X earnings over the last ten years, with a high above 30X. It is currently near 23X, below average, and analysts indicate a higher stock price. Analysts' coverage of MCD is broad. There are twenty-seven analysts with a current rating on MCD, and they peg the stock at Moderate Buy. That rating has been firm and steady for at least twelve months and is unlikely to change. The consensus target is up compared to last year, steady ahead of the report, and indicates a 16% upside relative to the pre-release price action. The Technical Outlook: McDonald’s Fall to Critical Support McDonald’s is in an uptrend, which will likely continue, but the market is at a critical turning point. The stock is down in premarket trading, sitting just above critical support at the long-term EMA, and it may move lower. The question is whether or not the EMA will produce a rebound. If so, the market for MCD should resume the uptrend soon. If not, this stock could fall below critical support and move as low as the $245 region. If a rebound forms, the critical resistance point is near $275, $280, and $300. A move above $300 to the consensus $318 would be bullish, set an all-time high, and open the door to another $50 upside. Before you consider McDonald's, 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 McDonald's wasn't on the list. While McDonald's currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
CVS Stock is Nearing a 52-Week Low, Better Buy Than Walgreens? 2024-04-30 13:25:00+00:00 - Key Points CVS Stock trades near a 52-week low, allowing investors to build a potential bull case. Compared to its closest competitor, Walgreens, CVS still holds more market share, and markets reward this. Financials back analysts' EPS projections and price targets to give investors the upside they could be hunting for. 5 stocks we like better than UBS Group After underperforming its peers in the healthcare sector, shares of CVS Health Co. NYSE: CVS are now nearing a 52-week low price. Underperforming the Health Care Select Sector SPDR Fund NYSEARCA: XLV by as much as 14% over the past year, CVS stock is now dangerously close to its $64.4 a share low. While there could be good reasons for this steep decline, investors could find comfort in comparing CVS to its only real competitor, Walgreens Boots Alliance Inc. NASDAQ: WBA. Walgreens stock, like CVS, trades close to its 52-week low of $17.5 a share, though these two competitors differ in more than just price action. Get UBS Group alerts: Sign Up Coming into choppy uncertainty, markets could soon consider the safety CVS stock offers through its low beta. However, the real reason investors could squeeze double-digit upside from CVS today—instead of Walgreens—comes from the company’s underlying fundamentals. Earning Power Favors CVS, Driven by Fundamentals CVS Health Today CVS CVS Health $67.71 +0.26 (+0.39%) 52-Week Range $64.41 ▼ $83.25 Dividend Yield 3.93% P/E Ratio 10.48 Price Target $89.44 Add to Watchlist As of 2023, the top U.S. pharmacies (ranked by prescription drugs market share) have heavenly worthy mentions. CVS took 25.7% market share , while Walgreens came in second place at 14.7%. Because of this market share, CVS's financials will show a net income margin of up to 2.3%. While there is nothing to write home about, this is significantly higher than Walgreens' nonexistent margin. Posting a net loss of $6 billion in the past twelve months, Walgreens investors have fewer reasons to stick around. CVS’s market share could be boiled down to more than location advantages. Walgreens’s gross profit margin stood at 18.6% in the past 12 months, above CVS’s 14.9%. A lower profit margin suggests CVS is willing to assume more costs to increase its audience, whereas Walgreens prefers to pass on costs to its customers. More than that, CVS covers more of a physical presence, having 9,700 locations across the U.S., whereas Walgreens counts 9,700 locations. Covering 7.2% less ground than CVS places Walgreens at a disadvantage, and markets aren’t shy about making it obvious. Wall Street’s Vote CVS stock trades at 81% of its 52-week high, and despite being close to making a new 52-week low, it shows much better short-term momentum than Walgreens. Walgreens stock fell to only 51% of its 52-week high, suggesting little support keeping it from falling further. Knowing this, bears and short sellers came in to raid Walgreens. Over the past month, its short interest rose by 10.4%. At the same time, CVS reported a net decrease in short interest of 20.8% during the same period, leaving more room for bulls to justify another potential leg higher. Markets have another way of broadcasting their votes: they favor CVS. On a forward P/E basis, CVS commands a premium of 41% over Walgreens, having a respective 7.3x multiple over its competitor’s 5.2x valuation. When it comes to analyst projections, CVS once again shows its superiority. With a 9.3% earnings per share (EPS) growth prediction, analysts see a more optimistic future than Walgreens’ expected decline of 3.1%. Analysts at Piper Sandler Co. NYSE: PIPR see a valuation of up to $94 a share for CVS. The stock would need to rally by as much as 40% from today’s prices to prove these predictions right. On the other hand, Walgreens saw target downgrades from banks like Morgan Stanley NYSE: MS and the UBS Group NYSE: UBS. Come for The Prescriptions, Stay for The Cash Flow According to CVS’s financials, the past twelve months showed investors a free cash flow (operating cash flow minus capital expenditures) of up to $10.4 billion, enabling management to buy back $2.1 billion worth of stock, representing 2.5% of the company’s size. Because stock buybacks typically mean that insiders believe the stock is on the cheaper end and could keep moving higher, investors have another item to keep on for their CVS bull cases. More than that, buybacks are a more effective way to repay shareholders, as dividends – the alternative – suffer from double taxation. Speaking of which, Walgreens pays a 5.6% dividend yield today, though it isn’t funded by free cash flow. As of the past 12 months, Walgreens’ financials flow a negative $1.8 billion in free cash flow, meaning the $1.6 billion paid in dividends was funded from the $18.8 billion of issued debt… Yikes. Being part of the consumer staples sector, CVS can afford its 3.9% dividend at no risk to shareholders as it is more than affordable. Potentially filling every investor’s trifecta, CVS stock’s near 52-week low could make for a potential watchlist addition today. Before you consider UBS Group, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and UBS Group wasn't on the list. While UBS Group currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Did the Rally in Coca-Cola Company Stock Just Fizzle Out? 2024-04-30 13:15:00+00:00 - Key Points Coca-Cola struggled in Q1 but pulled off another quarter of growth ahead of analysts' forecasts. Prices are in the mix, helping the top line and sustaining margin for investors. Analysts rate the stock a buy and see it moving higher within its trading range. 5 stocks we like better than Coca-Cola Shares of Coca-Cola Company NYSE: KO gained nearly 20% from 2023’s low to 2024’s high and about 6% for the year because of the growth outlook, valuation, and capital return. The stock is pulling back to retest support following the Q1 release because the news, as good as it is, was little more than what the market expected. The near-term headwind is sentiment, which has been reset. The long-term driver remains the same: the growth outlook, valuation, and capital return. The company is forecasting growth, and shares of KO are still trading below the 3, 5, and 10-year average price multiples while yielding more than 3%. Get Coca-Cola alerts: Sign Up Coca-Cola’s Global Business Supports Growth Coca-Cola Today KO Coca-Cola $61.77 -0.27 (-0.44%) 52-Week Range $51.55 ▼ $64.69 Dividend Yield 3.14% P/E Ratio 24.91 Price Target $67.22 Add to Watchlist Coca-Cola struggled in Q1 with FX headwinds, inflation, higher pricing, and lower concentrate volumes contributing to results. However, the company reported $11.3 billion in net revenue for a gain of 2.7%. The growth is 300 basis points above the Marketbeat.com consensus and favorable to higher share prices. Growth is due primarily to the company’s lean into digital, which includes extensive branding initiatives across social media platforms and the deepening penetration of markets. Global unit case volume grew by 1%, while FXN organic growth peaked at 11%. Price and mix contributed 13%, offset by a 2% decline in volume. The price increases are centered in Latin America and EMEA, where FX headwinds are blowing the strongest. Volume was impacted by one less day in the quarter, and the timing of shipments and otherwise would have been positive. The margin news is mixed but favorable to shareholders. The GAAP operating income contracted by half due to one-offs, non-cash impairments, and the impact of FX headwinds, but other data offset it. The adjusted comparable margin improved by 60 basis points, and the GAAP and adjusted earnings are better than expected. GAAP and adjusted earnings are up 4% and 7% compared to last year, outpacing the topline growth despite the headwinds due to increased Other income, lower taxes, and a reduced share count. Shares are down about 0.5% YOY and should continue to fall incrementally throughout the year. Among the best news is the cash flow and free cash flow. The cash flow more than doubled, while FCF came in at $158 million to reverse last year’s outflow. The impact on the balance sheet was noticeable, with cash, marketable securities, inventory, and receivables all up compared to last year. Liabilities are also up but offset by the increases, leaving the balance sheet in fortress conditions. The company’s long-term debt is about 1.25X equity and 2.3X cash, well within manageable ranges. Top-Rated Coca-Cola Company Led Higher By Analysts Coca-Cola Dividend Payments Dividend Yield 3.15% Annual Dividend $1.94 Dividend Increase Track Record 63 Years Annualized 3-Year Dividend Growth 3.91% Dividend Payout Ratio 78.23% Recent Dividend Payment Apr. 1 See Full Details Coca-Cola is a Top Rated Dividend Stock on the Marketbeat.com platform, which has been led higher by revisions. The seven analysts tracked by the platform peg the stock at Moderate Buy and have it trading near $67.25. The $67.25 has been steady over the last twelve months but 8.5% above the price. The analysts are more likely to increase their targets now that guidance is in because the consumer staples company shows pricing power. The risk is that Q2 and H2 results will be weaker than expected and cap gains at higher price points later in the year. The post-release action is mixed but shows support near recent highs. Assuming the market follows recent trends, it should continue higher soon. The target for critical resistance is near $62.50 and will be an important pivot point for the market. If the price action continues higher, it will likely move up to the $65 level, where resistance may be stronger. If a new high can’t be reached, shares of KO will likely remain range-bound at current levels. Before you consider Coca-Cola, 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 Coca-Cola wasn't on the list. While Coca-Cola currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Fears of Putin swinging elections behind EU’s Meta crackdown 2024-04-30 12:43:00+00:00 - Fears that Vladimir Putin is trying to fill the European parliament with more pro-Russia MEPs were behind the EU’s blunt message to the Silicon Valley owner of Facebook on Tuesday. It gave Meta just five days to explain how it will root out fake news, fake websites and stop adverts funded by the Kremlin or face severe measures. Forty days out from the European parliamentary elections – and during a year in which countries with more than half the world’s population go to the polls – deep concerns about how Facebook is dealing with fake news were behind the warning. “The integrity of the election is an enforcement priority,” said Thierry Breton, the commissioner for internal market, warning that the European Commission would be quick to respond if Facebook did not rectify the problems within the week. “We expect Meta to inform us of the actions they are taking to address these risks in five working days or we will take all necessary measures to defend our democracy,” he said. Today we open cases against #Meta for suspected breach of #DSA obligations to protect integrity of elections: ▪️Inadequate ad moderation exploited for foreign interference & scams ▪️Inadequate data access to monitor elections ▪️Non-compliant tool for flagging illegal content pic.twitter.com/ZJHWNDm2MD — Thierry Breton (@ThierryBreton) April 30, 2024 The commission confirmed it had launched formal proceedings against Meta as the clock ticks down to elections being held across Europe on 6-9 June. The commission is extremely concerned that Russia will use Facebook, which has more than 250 million monthly active users, to try to swing votes in its favour. As the Belgian prime minister, Alexander De Croo, said earlier this month, after a formal investigation into alleged payments by the Kremlin to MEPs, the objective of Russia is “very clear”: to help “elect more pro-Russian candidates in the European parliament”. Officials declined to give precise examples but some are blatant, including adverts paid for by foreign agents. “It is fundamentally wrong they [Facebook] are making money on this,” said an official. They also say the tools to flag illegal or suspicious content are not visible enough. Links to fake news platforms, known as “doppelganger sites”, are not being removed quickly enough or at all, the EU suggests. Last week a Czech news agency website was hacked to display fake news including claims that an assassination attempt on the Slovak president had been foiled. At the same time France’s Europe minister, Jean-Noël Barrot, said the country was being “pounded” by Russian propaganda with “deliberate manoeuvres to disrupt public debate and interfere in the campaign for the European elections”. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Another concern on Facebook is Meta’s decision to “suppress” discourse in an effort to de-risk user-generated content on sensitive subjects such as the Middle East. This is known as “shadow banning”, and the EU wants Facebook to be more transparent in how it justifies these decisions. “Users need to know about it when it happens and they need to be able to appeal it, otherwise this is a discourse risk,” said an official. It is also concerned that Facebook was planning to discontinue a service called CrowdTangle that helped factcheckers, journalists and researchers to monitor disinformation. Tuesday’s proceedings against Facebook are the sixth taken by the European Commission since the EU’s Digital Services Act (DSA) came into force. But is it enough to stop the lies? Even officials in Nato, on a panel in Brussels in February, said they were treating disinformation as potent a weapon as bullets and missiles. Officials say it is not that Facebook is “not doing anything”, it is just that the measures in place are weak, opaque and not effective enough. Under sweeping new laws under the DSA, which came into force in August, the EU can fine social media companies up to 6% of their revenue or ban them from the union altogether. Facebook said: “We have a well-established process for identifying and mitigating risks on our platforms. We look forward to continuing our cooperation with the European Commission and providing them with further details of this work.”
3 simple steps to fight 'the Google effect' and improve your memory recall 2024-04-30 12:26:00+00:00 - Over the past five years, I estimate I've made the same lemon bar recipe dozens of times, if not more. While the steps are second nature, I'm hopeless at remembering any of the measurements. When I recently found myself once again typing "Sally's Baking Addiction lemon bars" into my browser I wondered, "Is my brain turning to mush?" It turns out my inability to retain some information is likely due a cognitive bias known as the "Google effect," or digital amnesia: the tendency for the brain to forget information that can be easily accessed online. It can weaken your memory, says Cynthia Borja, a project leader at The Decision Lab, a think tank where researchers study how people make decisions. "One of the things we know about the brain and memory is that 'use it or lose it' absolutely applies," she tells CNBC Make It. "If you tend to always rely on Google to remember a particular fact, for example, and don't 'use' your brain to remember it, your brain gets very good at not remembering it." If you tend to always rely on Google to remember a particular fact ... your brain gets very good at not remembering it. Cynthia Borja Project Leader, The Decision Lab In order not need to rely on the search box so often, Borja says it's worth it to spend a little more time and energy committing information to memory. Here are three simple steps you can take to wean yourself of Google and improve your recall. 1. Pause before reaching for your phone Just because you can't immediately recall something doesn't mean you'll never recall it. Before Googling a question you know you've searched before, Borja recommends taking a few minutes to try to remember the answer. "Even if this doesn't work at first, and you end up having to Google it anyway, you will slowly strengthen your memory pathways and improve your recall," she says. 2. Write down what you want to remember If you find information online that you know you'll want to remember later, write it down. Taking notes by hand "tends to help retain information better and also means you have to engage more actively in what you are doing," Borja says. It's an expert-approved strategy. In a 2021 Reddit AMA, Bill Gates said that he takes handwritten notes while reading books in order help him really absorb the information. "For a lot of books, that is key to my learning," the billionaire said at the time. 3. Reframe your thinking
Eurozone exits recession as ‘big four’ economies beat forecasts 2024-04-30 12:01:00+00:00 - The eurozone has bounced back from its shallow technical recession after a stronger than expected performance by its “big four” economies in the first three months of 2024. After two successive quarters of 0.1% contraction in the second half of 2023, the 20 nations that use the single currency posted growth of 0.3% between January and March. Figures from the European Commission’s statistical agency – Eurostat – showed the eurozone had put in its best growth performance since the third quarter of 2022. Financial markets had been expecting 0.2% growth. Lower energy prices, falling inflation, rising real wages and the prospect of cuts in interest rates helped to boost activity after a downbeat 2023 in which the eurozone only grew in one quarter. Europe’s two biggest economies – Germany and France – grew by 0.2%, while Italy and Spain posted growth of 0.3% and 0.7% respectively. Germany’s performance in the final three months of 2023 was worse than originally thought: the economy contracted by 0.5% rather than 0.3%. Of the smaller eurozone economies, the best performing were Ireland, which grew by 1.1% in the first three months of 2024, and Latvia, Lithuania and Hungary, which expanded by 0.8%. Separate Eurostat data showed headline eurozone inflation remained unchanged in April at 2.4%, while core inflation – which excludes energy and food – came down from 2.9% to 2.7%. Although the eurozone’s growth performance in the first quarter was stronger than the European Central Bank had been forecasting, analysts said lower inflation paved the way for interest rate cuts in the months ahead. Sam Miley, the managing economist at the Centre for Economics and Business Research, said: “This morning’s confirmation of quarterly growth in the first quarter has put an end to a short-lived recession in the eurozone, with the economy having turned a corner since the beginning of 2024. “Prospects are likely to improve further throughout the year, driven by the expectation of interest rate cuts.” Andrew Kenningham, the chief Europe economist at Capital Economics, said: “While the eurozone’s mild recession appears to be over, we think the economy will expand at only a moderate pace over the rest of the year.” skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Some of the improvement in the first three months of 2024 was due to temporary factors, such as a rebound in construction, while business surveys also pointed to sluggish growth, Kenningham said. UK first quarter growth figures are due out next week, with the financial markets anticipating 0.3% growth and an end to the mild recession recorded in the second half of 2023. Figures from the Bank of England showed mortgage approvals for house purchases rose from 60,500 in February to 61,300 in March, taking them to the highest level since September 2022. The Bank of England’s monetary policy committee will make its latest decision on interest rates next week, but is expected to leave official borrowing costs unchanged at 5.25%.
From Baby Talk to Baby A.I. 2024-04-30 07:00:14+00:00 - There has been much research and heated debate around how babies accomplish this. Some scientists have argued that most of our language acquisition can be explained by associative learning, as we relate sounds to sensibilia, much like dogs associate the sound of a bell with food. Others claim that there are features built into the human mind that have shaped the forms of all language, and are crucial to our learning. Still others contend that toddlers build their understanding of new words on top of their understanding of other words. This discourse advanced on a recent Sunday morning, as Tammy Kwan and Brenden Lake delivered blackberries from a bowl into the mouth of their twenty-one-month-old daughter, Luna. Luna was dressed in pink leggings and a pink tutu, with a silicone bib around her neck and a soft pink hat on her head. A lightweight GoPro-type camera was attached to the front. “Babooga,” she said, pointing a round finger at the berries. Dr. Kwan gave her the rest, and Dr. Lake looked at the empty bowl, amused. “That’s like $10,” he said. A light on the camera blinked. For an hour each week over the past 11 months, Dr. Lake, a psychologist at New York University whose research focuses on human and artificial intelligence, has been attaching a camera to Luna and recording things from her point of view as she plays. His goal is to use the videos to train a language model using the same sensory input that a toddler is exposed to — a LunaBot, so to speak. By doing so, he hopes to create better tools for understanding both A.I. and ourselves. “We see this research as finally making that link, between those two areas of study,” Dr. Lake said. “You can finally put them in dialogue with each other.”
NYCB delays annual shareholders meeting by two weeks 2024-04-30 06:34:00+00:00 - (Reuters) - New York Community Bancorp has pushed back its annual shareholders meeting by two weeks to June 5. The bank disclosed the change in date late on Friday. It had earlier announced its 2024 AGM on May 17. NYCB did not immediately respond to a Reuters request for comment seeking details about the delay. The bank has been under pressure since January when it posted a surprise loss for the fourth quarter due to higher provisions tied to its exposure to the commercial real estate portfolio. It also slashed its quarterly dividend by 70% in January to bolster capital to deal with stricter regulations for banks with more than $100 billion in assets. NYCB's acquisition of Flagstar Bank in 2022 and some assets of failed Signature Bank last year had pushed it above the $100-billion threshold. In March, the troubled lender raised $1 billion from investors including former U.S. Treasury Secretary Steven Mnuchin's Liberty Strategic Capital and named a former Comptroller of the Currency its new CEO. At the time, it also promised to unveil a turnaround plan aimed at reducing its commercial real estate exposure. (Reporting by Manya Saini in Bengaluru; Editing by Shinjini Ganguli)