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United Auto Workers reaches deal with Daimler Truck, averting potential strike of more than 7,000 workers 2024-04-28 01:45:00+00:00 - The United Auto Workers union announced it reached a last-minute tentative agreement with truck and bus manufacturer Daimler Truck, averting a potential strike of more than 7,000 workers. The union struck a four-year agreement with the German company on Friday evening, just before the expiration of the previous contract, which was enacted six years ago. It covers workers at various plants in North Carolina - where Daimler makes Thomas Built Buses, Freightliner and Western Star trucks - as well as distribution centers in Atlanta and Memphis, Tennessee. In an online speech, UAW President Shawn Fain said the new contract includes wage increases of more than 25% over the next four years, including a 10% raise after the deal is ratified. Fain said the deal also includes the end wage tiers at the company, as well as cost-of-living adjustments and "profit sharing for the first time in Daimler history." "When that deadline came closer, the company was suddenly ready to talk," Fain said. "So tonight, we celebrate." Union members still need to approve the agreement. "The UAW members at these locations will now be asked to vote on the new contracts, and we hope to finalize them soon, for the mutual benefit of all parties," Daimler said in a statement. The heavy-duty manufacturer was once the same company as Mercedes-Benz before it split off in 2021. The Daimler deal comes amid a broad campaign by the UAW to organize southern auto assembly plants following lucrative new contracts in a confrontation with Detroit's automakers. Last week, 73% of those voting at a Volkswagen AG plant in Chattanooga, Tennessee, chose to join the UAW. It was the union's first in a southern assembly plant owned by a foreign automaker. Workers at Mercedes factories in Tuscaloosa, Alabama, will vote on UAW representation in May. However, UAW's efforts have sparked pushback from Republican governors and business leaders in the South.
Why is this small town in Pennsylvania considered the best place to retire? 2024-04-27 20:29:00+00:00 - The ideal American small town to retire in is probably unknown to most people. But with a relatively low average monthly cost of living, low crime rate and other attributes that make it highly livable, Camp Hill in Pennsylvania's Cumberland County, may be the best small town in the U.S. for retirees. That's according to a report by GoBankingRates.com, which looked at small towns with populations of between 1,000 and 10,000, with an eye toward the perfect retirement. In addition to the total number of households and median household income of each town, researchers also obtained average rental and living costs as well as crime rates and "livability" data, taking into account area amenities, housing opportunities, transportation services and more. Among the report's list of the 44 best small towns to retire in, Camp Hill holds the highest livability rating and overall score. Northville, Michigan, came in second place, followed by Fort Mitchell, Kentucky, in third. Freeport, Maine, rounded out the top four best places to retire to, earning high livability marks but costing more on a monthly basis and having a more elevated crime rate. With a population of just over 8,000 people and roughly 3,200 households earning median incomes of about $105,000, Camp Hill is also one of the more affordable places in the country. Residents there can expect to spend about $3,360 a month on living costs, including rent and other expenditures, the report found. By comparison, Kensington, California, a town of 5,300 people, has an average monthly cost of living of $8,000. Other small towns offered similarly low monthly expenditures, but earned fewer points in the livability category. Retirement at 65 out of reach for most Americans Located two miles from Harrisburg, the state capital, Camp Hill claims to have a vibrant shopping scene, made up of small businesses, a majority of which are owned by women, according to Visitcumberlandvalley.com. It's also home to the award-winning Cleve J. Fredricksen Library. A weekday farmer's market runs from May through October. To be sure, not all Americans can afford to retire as early as they'd expected, with an increasing share of workers remaining employed, or striving to remain employed, past the age of 65, out of necessity. About 27% of people who are 59 or older don't have any money saved for retirement, according to a survey from financial services firm Credit Karma. Only 10% of Americans between the ages of 62 and 70 are both retired and financially stable, labor economist and retirement expert Theresa Ghilarducci shows in her book "Work, Retire, Repeat: The Uncertainty of Retirement in the New Economy." The rest are either retired and living less comfortably than they once did, or still working out of financial necessity. You can view GoBankingRate.com's full list of the 44 best small towns in the country to retire in here.
Delta Air Lines Flight Loses Emergency Slide After Takeoff, Officials Say 2024-04-27 16:27:05+00:00 - A Boeing 767 plane flown by Delta Air Lines lost an emergency slide on Friday, prompting it to return to New York not long after taking off, officials said. The flight, Delta Air Lines 520, had left Kennedy International Airport in New York and was headed to Los Angeles when its crew discovered an issue related to the aircraft’s right wing emergency exit slide. Crew members also detected an unusual sound near the wing, Delta Air Lines said. Pilots declared an emergency to air traffic controllers and the flight returned to Kennedy and landed safely, the airline said. After the plane landed, it became apparent that the aircraft’s emergency slide had “separated” from the plane, Delta Air Lines said. The plane was removed from service and the airline said it would “thoroughly evaluate the aircraft.”
"We're not the sex police": Here's what intimacy coordinators actually do on film and TV sets 2024-04-27 14:56:00+00:00 - More than 70% of Americans say a rewarding career or job is extremely important for them to live a fulfilling life — more important than family, friends or wealth. CBS News interviewed a broad array of workers who chose unique jobs, for a series we call: Unique jobs, extraordinary lives. Have you ever heard of an intimacy coordinator? Most people don't know they are the professionals who help bring intimate scenes to life on screens. "We are there to help coordinate any scene with simulated sex acts, nudity, or vulnerable scenes," explained Amy Northrup, a New York City-based intimacy coordinator for film and television. Intimacy coordination is a relatively new and growing field. The first production to hire and credit a designated intimacy coordinator was HBO's "The Deuce," starring James Franco and Maggie Gyllenhaal, which premiered in 2017 and depicted the porn industry in 1970s New York City. There are more than 100 certified intimacy coordinators working on film and television sets today. Their pay is roughly in line with that of stunt coordinators, whose minimum rates the union sets are about $1,500 a day. They make, on average, between $60,000 to $90,000 per year. In its latest union contract, the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) stated that productions must make a good-faith effort to hire intimacy coordinators when necessary. According to the Motion Picture Association, the film and television industry employs 2.74 million people and pays more than $242 billion in wages annually to everyone from stunt performers to hair and makeup artists across domestic productions. Northup told CBS News she gets frequent questions about the career path she took to instruct a pair of actors to "make love" based on a script that offers few other descriptive details. She said intimacy coordinators need to bring a variety of skills to set in order to make actors feel comfortable performing such scenes. "We're not the sex police" The perception of what intimacy coordinators do on set has evolved too — producers and directors have come to lean on them for guidance to realistically depict "vulnerable" moments on screen. "Vulnerable" scenes can also include an actor depicting someone giving birth or someone in a wheelchair being bathed. A scene with breastfeeding or that shows a gynecological appointment would qualify too. "Anything asking people to put their bodies in a hyper-exposed, vulnerable state is where intimacy coordinators can be effective team members," Northrup told CBS News. Actor Zendaya recently spoke publicly about how working with an intimacy coordinator on scenes filmed for director Luca Guadagnino's "Challengers," whose story follows a love triangle, made her feel safe and comfortable while filming intimate scenes with her co-stars. Zendaya said an intimacy coordinator helped her feel comfortable filming some scenes for Challengers with actors Josh O'Connor and Mike Faist. Marilla Sicilia/Archivio Marilla Sicilia/Mondadori Portfolio via Getty Images "It's really expanded in last five years and people recognize that intimacy coordinators are creative resources who come with dramaturgy expertise around sex and sexuality," Northup said. "We are not the human resources department, we're not the sex police." Much of the work Northup and her colleagues do takes place before the cameras start rolling. That can include talking to directors about how they envision scenes unfolding, and what precise positions they want actors' bodies in — details that aren't always included in scripts. "Scenes are usually written as 'They go at it,' or 'They make love,'" Northup said. "For one director it could mean they kiss, fall into bed and the camera directs away. For another it would be we stay on them, one person climbs on top, and there's a moment that could be really detailed. So the first thing we ask the director is, 'What are you picturing? What are shot setups, what is the body positioning, the degree of nudity, what actual sex acts do they engage in?'" Other times intimacy coordinators must consider actions to keep actors safe such as making sure an actor's scene partner doesn't eat peanuts because someone has a peanut allergy and kissing them would be dangerous. Navigate the "messiness" of human interaction There's no traditional career path to become an intimacy coordinator. The job requires a unique blend of skills that intimacy pros working today might have picked up working as actors or in other film industry roles. It also demands soft skills that are harder to teach, like a certain demeanor and a gentle touch. "We are here to help navigate the messiness of human interaction. Demeanor-wise, it's important to bring levity to the role, a light touch, and to be expert at de-escalating and intervening in a way that no one knows it happened," Northup said. While professionals don't need certification to work, several training programs meet SAG-AFTRA's standards. The union maintains a list of about 70 registered intimacy coordinators. Jessica Steinrock is the founder and CEO of SAG-AFTRA accredited Intimacy Directors and Coordinators, which she says has certified about 100 professionals. Among other topics, certification programs teach consent training, movement coaching techniques, modesty garment and barrier application, and bystander intervention protocols. Jessica Steinrock teaches an intimacy coordination workshop. Isaak Berliner While certification is one way to demonstrate qualification, Steinrock noted that many capable intimacy practitioners aren't officially certified. On-set experience is always helpful, too, and some intimacy pros balance coordination with work as actors, assistant directors or the costume team. Lucy Shapiro, a seasoned costume designer who has worked on TV series including "Life and Beth and "Only Murders in the Building," said there's a crossover between what her department does and intimacy coordination. She even founded a company, Covvier, that makes modesty garments with protective barriers for actors to wear while filming nude or intimate scenes. Previously, she and other costumers made use of shoe insoles, yoga mats and deflated pilates balls to create barriers between actors filming intimate scenes. "It wasn't until intimacy coordinators came around and said there should be a standard garment that we started our company," she told CBS MoneyWatch. "Working side by side with intimacy coordinators has been such an industry change and has made it so much better to everyone all around."
MarketBeat Week in Review – 4/22 - 4/26 2024-04-27 11:00:00+00:00 - Key Points Stocks are bouncing higher to end the week as tech earnings offset negative economic indicators. Investors are still not expecting interest rate cuts as inflation remains hot and GDP guidance was weak. Here are some of our most popular articles from this week. 5 stocks we like better than Novo Nordisk A/S Tech earnings led by Alphabet and Microsoft were lifting stocks higher to end the week. Prior to that, the multi-week sell-off was still in place as several key economic indicators cast doubt on the health of the economy. First, housing starts and the number of finished homes came in lower year-over-year. Then, the first reading on GDP was lighter than expected. And on Friday, the March PCE reading showed the rate of inflation was hotter than expected. In the past, bad news might have been seen as good news. But for now, investors are taking the Fed at its word, which means no interest rate cuts...for now. Unfortunately, that could mean that the stagflation (i.e., elevated inflation with slower economic growth) that Jamie Dimon fears may be turning into reality. Next week will bring a full schedule of earnings, and the MarketBeat team will be following the key stocks and stories that will move the market. Here are some of our most popular stories from this week. Get Novo Nordisk A/S alerts: Sign Up Articles by Jea Yu Stock traders know that you can make money when stocks are falling just like you can when they're rising. However, if short selling isn't your thing, Jea Yu explains why trading put options. Specifically, a put debit spread can be a profitable trading strategy that lets you make a bearish directional trade at a fraction of the cost. GLP-1 weight loss drugs are now part of everyday conversation. The top brands, Wegovy and Zepbound, continue to see strong demand. However, enough data exists for patients to start asking which GLP-1 drug is better. That was the question that Yu was addressing this week. The answer could have a significant impact on the stocks of Novo Nordisk A/V NYSE: NVO and Eli Lilly & Co. NYSE: LLY. While many stocks sank this week, The Charles Schwab Co. NYSE: SCHW managed to buck that trend. After initially dropping after a mixed report, shares of SCHW stock are near a 52-week high on the strength of significant deposit inflows to the country's second-largest retail brokerage firm. Articles by Thomas Hughes Thomas Hughes was tracking two closely watched earnings reports. Caterpillar Inc. NYSE: CAT and Texas Instruments NASDAQ: TXN are telling investors a similar story in two very distinct sectors. The story is weak guidance now but strong dividends that offer significant value and likely growth as we get into the back half of the year. In the case of Caterpillar, Hughes explains that the recent pullback is a case of investors getting ahead of analyst sentiment. For TXN stock, however, it appears that after trading in a defined range, analyst sentiment will start to lead the stock higher. Hughes also wrote about Lockheed Martin Corporation NYSE: LMT. The defense contractor is generating growth for investors now and continues to forecast long-term growth. And even with LMT stock approaching all-time highs, that guidance may be too cautious if current geopolitical concerns begin to escalate. Articles by Sam Quirke Sam Quirke reminds investors this week that markets can take on a life of their own. However, that can create opportunities when good results from quality companies get overlooked in a broad sector downtrend. That seems to be the case with the cybersecurity firm Zscaler Inc. NASDAQ: ZS. Despite a strong earnings report in March, ZS stock has given up almost all of the gains it made since late 2023. Nevertheless, analysts are bidding the stock higher, which makes this a good entry point. Sticking with the theme of quality stocks with significant upside, Quirke highlighted three stocks that outperformed their peers in the first quarter. Quirke notes that that's frequently a signal of stocks that will move higher when market sentiment turns bullish. Articles by Chris Markoch Did Big Tech just save the day again? You can't blame investors for thinking so after the strong earnings report from Alphabet Inc. NASDAQ: GOOGL. As Chris Markoch explains, the company's announcement of its first-ever dividend, along with $70 billion in share buybacks, shows the company is trying to prioritize shareholder value even as it continues to increase spending in artificial intelligence. Markoch also wrote about the final earnings report of GE Aerospace NYSE: GE as a conglomerate. Going forward, the company will only report as its stand-alone GE Aerospace unit. Markoch explains why analysts may be rethinking their notions that GE stock is priced for perfection. Articles by Ryan Hasson The semiconductor and utilities sectors couldn't be more different. The semiconductor (or chip) sector is notoriously cyclical. In early 2024, investor sentiment on the sector turned bearish as the market began to look oversupplied. However, Quirke analyzes five of the top names in the chip sector and explains what you should be looking for as you consider taking a position. On the other hand, utilities stocks are known as steady stocks. Still, these stocks can come out of favor during bull markets. However, in a flight to safety, these stocks tend to shine. Hasson explains why that makes the Utilities Select Sector SPDR Fund NYSEARCA: XLU worth a look as it gains strength. Another approach for investors in volatile markets is to buy defensive stocks. Many of these stocks have dividend yields that are higher than the yield on Treasury notes, even at their elevated levels. Hasson highlights five high-yield stocks that are looking oversold, which makes them an even better value. Articles by Gabriel Osorio-Mazilli Energy stocks have been a smart play for investors as the price of crude oil remains above $80 and is still expected to reach $100. But Gabriel Osorio-Mazilli points out that contrarian investors may want to take a closer look at NextEra Energy Inc. NYSE: NEE. The renewable energy stock could be more attractive as oil prices rise and analysts begin to raise their price targets. Osorio-Mazilli also wrote about Hasbro Inc. NASDAQ: HAS. The toy maker's stock is up 12% after a strong double beat. Analysts are bidding the stock higher, which should support the company's high valuation relative to the rest of the sector. And if you're an investor who has given up on The Boeing Co. NYSE: BA, Osorio-Mazilli lays out the case to give the stock a second look. Among them are narrowing losses, the imminent departure of its CEO, and the potential for greater demand from lower interest rates. Before you consider Novo Nordisk A/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 Novo Nordisk A/S wasn't on the list. While Novo Nordisk A/S currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Possible TikTok ban leaves some small businesses concerned for their survival 2024-04-27 01:48:00+00:00 - With the clock ticking on TikTok in the U.S., millions of users, including small business owners, are scrambling to figure out what to do. One of them is Brandon Hurst, who says TikTok has changed his life through his plant delivery business. "It allows me to go live, share who I am, but it also makes it easy for people to buy," Hurst said. Since he started selling plants on TikTok last year, Hurst, better known as "Brandon the Plant Guy," says he has tripled his business. "In the last year we've been able to sell 57,000 (plants)," Hurst said. His company is one of seven million small businesses on TikTok, the social media platform alleges. TikTok also claims it supports more than 224,000 American jobs. "I have friends and family members that work for me and help package plants and orders," Hurst said. "So this goes beyond just me now. This is a team of eight other people that would lose their jobs." The TikTok ban was signed into law Wednesday by President Biden as part of a $95 billion foreign aid package. Under the new law, ByteDance, TikTok's Chinese-based owner, has nine to 12 months to sell the platform to an American owner, or TikTok faces being banned in the U.S. A ban would force scores of entrepreneurs to look for a new home. Meanwhile, TikTok plans to file a lawsuit over the ban in federal court. "One of the reasons that TikTok has become so popular among small businesses is because it has an ability, unlike any other platform, to send products flying off the physical and virtual shelves," Jasmine Enberg, an analyst for the data firm eMarketer, told CBS News. Enberg believes Meta would be "one of the biggest beneficiaries" of a TikTok ban. "Instagram Reels is the most natural fit," to replace TikTok, Enberg said. "It isn't exactly the same. You can replicate the technology, but you can't replicate the culture." So where would Hurst pivot his social media business in the event of a TikTok ban. "I'm on Instagram, I've been doing business on other platforms," Hurst said. "…There's just not that many places you can live sell. So I haven't thought about it yet, to be honest. I'm not sure...what we would do."
Here's how much income it takes to be considered rich in your state 2024-04-26 23:29:00+00:00 - Biden calls for higher income tax on billionaires: "They can afford it" Many Americans aspire to join the ranks of the wealthy, but the income threshold for being considered rich depends a lot on where you live. It also takes considerably more income to join the top 5% of earners than just a few years ago, according to new research from GoBankingRates.com, which examined state income data for the five-year period from 2017 to 2022. The latter year represents the most recent household income data from the U.S. Census Bureau. The easiest place to reach the top of the heap is West Virginia, where an annual income of $329,620 will qualify you as among its highest earners. But you'll have to earn more than twice that, at $719,253, to join the top 5% in Washington D.C. Americans' fortunes have improved during the last few years, partly due to the federal government's pandemic stimulus efforts that doled out billions in aid to businesses and taxpayers, said Andrew Murray, lead data content researcher for GoBankingRates. At the same time, the nation's top-earning households are gaining a greater share of income, fueling rising income inequality, Census data shows. "COVID relief policies bolstered the economy, leading to boosted stock prices, real estate and savings," Murray told CBS MoneyWatch. "These conditions were especially favorable for the wealthiest of Americans, who experienced dramatic income increases, especially considering the fact that many companies saw record profits." To be sure, income isn't the same as wealth, which has also grown since the pandemic. But earning a higher salary can help families build their assets, allowing them to buy homes, invest in education for their children and take other steps to cement their wealth. The outsized income growth of the nation's top-earning families before and after the pandemic may be one of the U.S. economy's most important storylines, Murray said. "Even though the bottom 20% of earners saw drastic increases in pay, their overall wealth share in the country actually decreased, as the rich became much richer," he said. After West Virginia, Mississippi had the second-lowest threshold for joining its top-earning households, at $333,597, according to GoBankingRates. Meanwhile, joining the 5% of earners requires considerably more in many Eastern states, with Connecticut's threshold at $656,438 and New York at $621,301, the study found. "This comes down to cost of living," Murray said. "People in New York or D.C. are paid higher salaries than people in states with a lower cost of living, such as Arkansas or Louisiana." Between 2017 and 2022, Idaho, Nevada and Washington saw the biggest jumps in the amount needed to be considered among their states' top earners, according to GoBankingRates. Idahoans require an extra $115,769 in annual income, while Nevadans need an additional $129,469. Washingtonians must earn $166,144 more to join the top 5%. The reason is due to changes in the economies of Idaho, Nevada and Washington during the past few years, Murray said. Washington, for example, saw residents' incomes rise 44% between 2017 and 2022, which Murray said is "likely due to Seattle's rising reputation as a tech hub after COVID." In Idaho, thousands of people moved to Boise during the pandemic, bringing with them their salaries from remote-work jobs, he said. "In the case of Nevada, which ranked number two studywide, gambling became more readily legalized and accessible from 2017 to 2022," Murray said. "This led to major profit increases for companies headquartered in Las Vegas."
Planning on retiring at 65? Most Americans retire far earlier — and not by choice. 2024-04-26 21:47:00+00:00 - American workers by and large believe they'll retire at 65, the nation's traditional retirement age. But real life often gets in the way of those plans, with new research finding that the majority actually step back from work far earlier. And for many, it's not by choice. The median retirement age for Americans is actually 62, meaning that the typical worker is stepping back from their career three years earlier than expected, according to new research from the Employee Benefit Research Institute, a nonprofit focused on employee benefit programs. The findings underscore the gap between retirement goals and reality. One increasingly popular idea, often promoted by lawmakers and business leaders, is that Americans should work longer so they can better afford their golden years. Because millions of workers are woefully lacking in retirement savings, working longer is seen as a way to solve their funding gap. In reality, however, many U.S. seniors are forced into retirement before they're ready. But even when people want to work longer, they're not always able to, the new research found. "It's hard to make that case that everyone should work longer and that will solve the problems we have in retirement," Craig Copeland, director of wealth benefits research at EBRI, told CBS MoneyWatch. "That clearly won't solve all the problems because many people just can't do it." Seven in 10 retirees stopped working before they turned 65, the report found. Overall, about half said they stopped working before they had expected, with the majority blaming reasons out of their control. For instance, about one-third cited a health issue or disability for their earlier-than-expected retirement. Only about 2 in 5 said they stopped working earlier than expected because they could afford to do so, the research found. Within that gap between expectations and reality lies the potential for some troubling outcomes. For instance, workers who plan to retire at 65, but are forced to stop working years earlier, might not have enough saved. Already, many older Americans lack any retirement savings, with a new AARP study finding that 1 in 5 people over 50 have nothing saved for their old age. Needed: $1.5 million The new EBRI study, which polled 1,255 workers and 1,266 retirees in January, found that only about half of workers have calculated how much money they'll need in retirement. Of those who examined their financial retirement goals, about one-third believe they'll require at least $1.5 million, EBRI found. That jibes with other research that found the typical worker believes they'll need $1.46 million to retire comfortably. But in reality, most Americans have far less, with EBRI noting that about one-third of workers currently have less than $50,000 in savings and investments. Americans may be picking big numbers because of the rule of thumb that you should have about 10 times your salary saved for retirement, Copeland noted. "So if you are making $100,000 or $150,000, $1.5 million is a simple calculation to get you there," he noted. "They are realistic in what they need, but I'm not sure they are realistic in what they need to save to reach that number, and that's the issue." At the same time, most workers expect Social Security will be a source of income in retirement, EBRI found, even as the benefits program is set to face a funding shortfall in less than a decade. If Social Security isn't shored up by 2033, retirees could face an across-the-board benefits cut of more than 20%, a worrying issue for workers without much saved for retirement. Even so, current retirees overall are optimistic about their lives, with EBRI finding that two-thirds said they are living the retirement life they envisioned. "It's pretty positive overall," Copeland said. "But getting there can be a stressful situation."
After Biden signs TikTok ban into law, ByteDance says it won't sell the social media service 2024-04-26 19:00:00+00:00 - ByteDance, the China-based owner of TikTok, said it doesn't have plans to sell the social media service in the wake of a new law that requires it either to divest ownership of the popular app within 12 months, or face a U.S. ban. On Thursday, ByteDance posted a message on Toutiao, a Chinese social media service which it owns, refuting reports that the company is considering selling TikTok. Such reports are "untrue," it wrote. It added, "ByteDance does not have any plans to sell TikTok." The message comes two-days after President Joe Biden signed the TikTok divest-or-ban measure into law and a day afterTikTok on Thursday vowed to fight the new law in the courts. TikTok CEO Shou Zi Chew said in a video posted to the service that "the facts and the Constitution are on our side." He added that TikTok expects "to prevail again," referring to Montana's failed effort to ban the app, which was blocked in November by a federal judge. The stance from TikTok and ByteDance is setting up a battle between the technology companies and U.S. lawmakers over the future of the video app, known for its addictive never-ending scrolling. Lawmakers passed the ban law out of concern over ByteDance's ties to China, including fear that ByteDance or TikTok could share data about U.S. users with China's authoritarian government. "The idea that we would give the Communist Party this much of a propaganda tool, as well as the ability to scrape 170 million Americans' personal data, it is a national security risk," Senator Mark Warner, a Virginia Democrat, said on CBS' "Face the Nation," earlier this month. ByteDance's post on Toutiao included a screenshot of a headline from a tech-focused business publication called The Information that read, "ByteDance exploring options for selling TikTok without algorithm." In a post written in Mandarin, ByteDance stamped the Chinese character for "rumor" over the headline. The Information didn't immediately return a request for comment from CBS MoneyWatch. In a statement to CBS News, TikTok said, "The Information story is inaccurate. The law Congress passed and the President signed was designed to have a predetermined outcome: a ban on TikTok." Already banned in some countries TikTok is already banned in a handful of countries and from government-issued devices in a number of others, due to official worries that the app poses privacy and cybersecurity concerns. Countries that have instituted partial or full bans include India, where it has been nationally banned since 2021, and Canada, where devices issued by the federal government aren't allowed to have the app. It's also not available in mainland China, a fact that CEO Chew has mentioned in testimony to U.S. lawmakers. ByteDance instead offers Chinese users Douyin, a similar video-sharing app that follows Beijing's strict censorship rules. TikTok also ceased operations in Hong Kong after a sweeping Chinese national security law took effect. —With reporting by the Associated Press.
3 Stocks Leading the U.S. Agriculture Comeback 2024-04-26 14:10:00+00:00 - Key Points Global crop supplies reached a cyclical low recently, needing the agricultural sector to step up its production soon. Three stocks come into play as critical industry supporters, offering investors different risk and reward metrics. From high growth to low betas and high dividends, investors can serve their portfolios accordingly during this cycle. 5 stocks we like better than Bank of America Every cycle in the economy brings a different set of opportunities for investors. These are weighted as a balance between risk and potential reward. Depending on market conditions, the scale may tip to one side or the other. Today’s environment may pose a higher-than-desired risk for most investors, so boring names may be the best place. With an overall lack of volatility, the agricultural sector could be one place for investors to start looking to tip the reward scale in their favor at the least risk. Within this industry, three specific stocks could lead to a turnaround in its current bottoming. Get Bank of America alerts: Sign Up Stocks like Deere & Co. NYSE: DE, Corteva Inc. NYSE: CTVA, and Archer-Daniels-Midland Co. NYSE: ADM each have merit for a breakout watchlist. Before investors dig in, here’s the primary trend driving all three companies today. 2024: The Year of The Farmer According to investor presentations from CF Industries Holdings Inc. NYSE: CF, global stocks-to-use ratios have reached a cyclical bottom in the past few months. Focused on grains and oilseeds, some of the main factors in animal feed and human consumption through vegetable cooking oils, the world supply needs to see a restock soon or risk continued food inflation. Understanding that farming probably can’t occur without Deere’s tractors and other farming machinery, investors can see this stock as the first to get ‘paid’ in this industry value chain. CTVA’s seed and crop protection products must ensure optimal farm yields in this new production wave. Last but not least, these commodities (once harvested) need to be stored and transported, where Archer-Daniels services step in to be the last to get ‘paid.’ The profit waterfall matters to investors since they all carry different opportunities and characteristics. For Those in A Hurry, Deere Stock is Best Deere & Company Today DE Deere & Company $393.33 -0.73 (-0.19%) 52-Week Range $345.55 ▼ $450.00 Dividend Yield 1.49% P/E Ratio 11.45 Price Target $433.28 Add to Watchlist Markets now pay a 5.2x price-to-book (P/B) ratio for Deere stock, above the farm machinery & equipment industry’s 2.6x valuation. There must be a good reason for markets to pay a 100% premium for Deere stock instead of its competitors. One reason is the company’s outdated earnings per share (EPS) projections, with analysts expecting a 2.5% decline for the year. The contradiction is Deere’s $433.3 price target, which shoots for up to 10% upside from where the stock trades today. While reporting some disappointing figures in their first quarter 2024 presentation, there is one golden nugget for investors to remember. Deere’s turf and utility equipment sales rose by double-digits, with construction and forestry also following the trend. With the ISM services PMI index showing more than three months of expansion for the agriculture and forestry industry, Deere’s business could be set up to beat analyst and management expectations this year. By far the biggest name in the list, at a $110 billion market capitalization, Deere’s low beta can give investors a less bumpy way to ride the industry breakout. Corteva Can Fill Your Need for Thrill Corteva Today CTVA Corteva $54.92 +0.22 (+0.40%) 52-Week Range $43.22 ▼ $61.87 Dividend Yield 1.17% P/E Ratio 53.84 Price Target $63.29 Add to Watchlist Trading at 88% of their 52-week high , shares of Corteva now command a 458% premium to the agricultural production industry’s 9.3x P/E valuation. This year, a projected 22.2% EPS growth could justify markets paying a 53.6x P/E for the stock today. As a critical pillar in the farming industry, institutions understand that the world will only raise its stocks-to-use ratio with Corteva's chemicals, and its market cap shows. The company's $38 billion jumps over CF Industries' $15 billion, and even The Mosaic Company's NYSE: MOS $9.7 billion. Analysts at KeyCorp NYSE: KEY think the stock could go as high as $66 a share, or 21% above today’s price. The company’s quality and market positioning are evident in its 81.5% institutional ownership and the $22.9 billion in institutional inflows over the past 12 months. Archer-Daniels, a Discount Play Archer-Daniels-Midland Today ADM Archer-Daniels-Midland $60.10 -0.90 (-1.48%) 52-Week Range $50.72 ▼ $87.30 Dividend Yield 3.33% P/E Ratio 9.39 Price Target $67.50 Add to Watchlist This stock’s 9.5x P/E ratio comes at a discount of 17.3% to Deere’s valuation and an even steeper 82% discount to Corteva’s multiple. This makes sense, as this is the last company to get paid after the farming process, so markets won’t be too excited. However, Bank of America Co. NYSE: BAC took the long view. Analysts at the bank slapped a $74 price target on the stock, calling for a 21.3% upside from its current price. Shares of Archer-Daniels trade at only 70% of their 52-week high, bringing other signs of stability for those avoiding a stomach-churning run. A low beta of 0.7 coupled with a 3.3% dividend yield makes Archer-Daniels the place to be during these high inflation times. Before you consider Bank of America, 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 Bank of America wasn't on the list. While Bank of America currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
How to Use Put Debit Spreads to Profit From Falling Stocks 2024-04-26 13:30:00+00:00 - The market sell-off has awakened the hibernating bears. If you're feeling bearish and seek to profit from falling stocks but feel short selling is too risky, you can take a lower-risk approach with stock options. Short-selling stocks can result in unlimited losses if the stock runs up against you; options can help to define your risk better and even cap the maximum losses. Get Intel alerts: Sign Up You may consider taking long put options on stocks you feel will fall, but you bear the risk of losing 100% of your investment if the underlying stock doesn’t fall or fall fast enough. An alternative way to limit your risk is to use a put debit spread strategy. This multi-leg trade can help finance your long put option, enabling you to take a bearish directional trade at a fraction of the cost. What is a Put Debit Spread? A put debit spread also called a bear put spread or put spread, is comprised of a long put at a higher strike price and a short put at a lower strike price. Both options have the same expiration date. Debit spreads are trades you pay upfront for out of pocket because the difference between the put you short/sell and the put you buy long is what you have to pay for the trade. The cost or debit of the long put is offset by the credit received for shorting/selling the lower-priced put. The remaining debt is the cost of the trade. A put debit spread is a multi-leg options trade where you would buy 1 higher strike price put option and short/sell 1 lower strike price put option. For example, an ABC $55/$50 put debit spread is executed in 2 trades: buy 1 ABC $55 put option and sell/short 1 ABC $50 put option. Example of a Put Debit Spread with INTC Let's use an example of computer and technology sector giant Intel Co. NASDAQ: INTC. INTC has a very bearish daily chart as it has been selling off firmly from $41.65 to $34.50. The daily RSI has been suppressed under the oversold 30-band. Short-selling the stock when it is this oversold could result in getting short-squeezed. However, if we expect the selling to continue but want to limit our risk, we can use a put debit spread strategy. This will limit our losses preventing us from getting hurt too much if a short squeeze materializes, but also provides profit potential if the selling continues. Executing the Trade INTC is trading at $34.49. We choose the May 17, 2024, expiration date which is 24 days away. We can choose the INTC $35/$34 put debit spread for 52 cents. Most brokerage platforms will let you select the put debit spread trade in one transaction, but you can also do it manually in 2 separate trades. The 52-cent price is the difference between the $35 put option purchased at $1.84 and the $34 put option sold for $1.33 (minus fees). If INTC spikes, we don’t have to worry about margin calls triggered by a short squeeze because our risk is capped at a maximum loss of 52 cents, no matter how high the stock bounces against us. The Potential Outcome Upon expiration, there are 3 potential outcomes. The breakeven price on the trade is $34.48. This is derived from the $1.00 spread between the strike prices minus the debt (cost) of the trade 52 cents. The maximum loss is $52 if INTC closes at or above $35.00 on expiration. This is the amount of the debt that we paid to put on the trade. $35.00 is the strike price of the put we bought long. The maximum gain is $48 if INTC closes at or below $34.00 on expiration. This is the lower strike price where the put was sold/short. You can close out the trade before options expiration as well. However, if you want to achieve the maximum profit, then you'll want to hold through expiration to get the maximum theta premium. The pros are: Maximum loss is capped. You go into the trade fully aware that you can lose what you paid for the trade and nothing more. You go into the trade fully aware that you can lose what you paid for the trade and nothing more. Enables you to short an oversold stock without the risk of a margin call. This strategy helps you avoid getting short-squeezed and getting caught with a margin call if the stock surges against you. You can only lose what you put into the pot. This strategy helps you avoid getting short-squeezed and getting caught with a margin call if the stock surges against you. You can only lose what you put into the pot. Much cheaper than shorting a stock or buying a put option. Using a put debit spread uses less capital than actually short-selling the underlying stock or just buying put options. Making it a debit spread helps to discount the cost of a synthetic short position. The cons are: Maximum profit is capped. While you know what your maximum loss is ahead of time, you are also limited on your maximum gain regardless of how much lower the stock falls under your short put strike price. While you know what your maximum loss is ahead of time, you are also limited on your maximum gain regardless of how much lower the stock falls under your short put strike price. The maximum loss is still 100% of the investment. On a percentage basis, the maximum loss is still a 100% loss on investment. It's just that the investment is only a fraction of what the loss would be money-wise if you short-sell the stock or just buy a put option. Free to be a Bear Without Getting Short Squeezed Bears have had it rough after the pandemic opening. However, if you believe the market or a stock price will fall, then consider taking a smaller measured risk with a put debit spread strategy first. While you can hold the position into earnings expiration, you can also roll forward the trade to buy more time or add to your gains.
Alphabet Changes the Narrative with Its First-Ever Dividend 2024-04-26 13:15:00+00:00 - Key Points Alphabet stock is surging in the pre-market after the company delivered a double beat and announced its first-ever dividend. The report is allowing Alphabet to change the narrative after a rough first quarter that had investors questioning the company’s leadership in AI. With analysts bidding the stock higher, GOOGL will likely recover its $2 trillion market cap. 5 stocks we like better than Alphabet Alphabet Inc. NASDAQ: GOOGL got a much-needed win from its first-quarter earnings report. Shares of GOOGL stock are up more than 11% in pre-market trading after the tech giant announced its first-ever dividend and expanded its share buyback program to $70 billion. The 20 cents per share dividend will be paid on June 17 to holders of record on June 10. The dividend will apply to all three of the company's share classes. If projected over a full year, the dividend will have an 11% payout ratio based on current earnings estimates. That's comparable to the dividend paid by Apple Inc. NASDAQ: AAPL. Get Alphabet alerts: Sign Up Alphabet is the latest "big tech" company to take steps to be more shareholder-friendly. In 2023, Meta Platforms Inc. NASDAQ: META proved to investors that it could be more disciplined in its spending and prioritized earnings. Earnings have not been a problem for Alphabet, and the same was true in this earnings report. The company reported $1.81 in earnings per share (EPS), a 26% increase from the $1.56 expected and a 54% year-over-year increase. Changing the Narrative Alphabet Today GOOGL Alphabet $171.95 +15.95 (+10.22%) 52-Week Range $103.54 ▼ $174.71 P/E Ratio 26.37 Price Target $187.82 Add to Watchlist The first quarter of 2024 has been an eyesore for Alphabet. The company debuted its Gemini generative AI model to criticism when the model produced historically inaccurate images. Beyond any concerns about the company's intentions, the controversy raised legitimate questions about Alphabet's leadership among artificial intelligence stocks as it competes with Microsoft Corporation NASDAQ: MSFT, which is backing OpenAi and its ChatGPT model. However, on the conference call, Alphabet highlighted its leadership in both research and infrastructure as it relates to AI and the fact that AI plays a fundamental role in all of its core businesses. As evidence of that, the company announced that it will be increasing its capital expenditures (capex) on its AI infrastructure. The company also faces scrutiny from the U.S. Department of Justice (DOJ) which is investigating whether the company has abused its power in negotiating lucrative contracts to give its search engine an advantage over rivals. Walking and Chewing Gum at the Same Time Alphabet is showing investors that, like Meta, it can continue to invest in growth while taking cost-cutting initiatives that are boosting operating margins and free cash flow (FCF). In turn, they are returning those savings to shareholders. Part of the company's cost-cutting is coming out of its moonshot programs. Does this mean that Alphabet is abandoning these programs? Probably not. But in 2024, it's an acknowledgment that even growth companies will have to give investors a reason beyond an outlook for future growth to keep them interested. Back to $2 Trillion In pre-market trading, GOOGL stock is trading at nearly twice its average volume. If the stock continues to build on this momentum, it's likely that Alphabet will once again pass the $2 trillion mark for market capitalization. Since the report was released, MarketBeat has shown that seven analysts have increased their price targets on GOOGL stock. Each target is far above the current consensus target, which will undoubtedly move higher. Before you consider Alphabet, 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 Alphabet wasn't on the list. While Alphabet currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
5 High-Yielding Oversold Stocks with Bullish Ratings 2024-04-26 13:06:00+00:00 - Key Points Investors have favored defensive sectors in the short term, and oversold stocks offering high dividends might become more attractive as global tensions rise and the market pulls back. Analysts are bullish on five oversold, high dividend-yielding stocks amidst recent market volatility. PLD, CVS, XP, HD, and COLD, each offer compelling investment cases based on oversold conditions, dividends, and growth projections. 5 stocks we like better than Americold Realty Trust Amid global tensions and some severe market pullbacks, investors might seek refuge in defensive sectors, particularly oversold stocks offering high dividends. With uncertainties looming over geopolitical conflicts and dwindling prospects of the Federal Reserve's rate cuts, it might be wise to turn attention toward resilient stocks poised for potential upside, especially if you’re a conservative, long-term, value-orientated investor. Amidst the recent market pullback, monetary uncertainty, and geopolitical tensions, let’s delve into five oversold, high dividend-yielding stocks that analysts are bullish on. As defensive sectors like Utilities and Energy outperform amidst the recent volatility, these undervalued stocks present a compelling opportunity for investors aiming to balance risk with income potential. Let's explore these overlooked potential gems and understand why analysts are bullish on them in greater detail. Get Americold Realty Trust alerts: Sign Up 5 High-Yielding Oversold Stocks with Bullish Ratings Prologis Inc. Prologis Today PLD Prologis $104.06 +0.71 (+0.69%) 52-Week Range $96.64 ▼ $137.52 Dividend Yield 3.69% P/E Ratio 30.43 Price Target $134.24 Add to Watchlist is a powerhouse in logistics real estate. PLD is approaching highly oversold territory with a P/E ratio of 30 and an RSI of 18.95, presenting a compelling case for value investors. The company, known for its strategic focus on high-barrier, high-growth markets, boasts projected earnings growth of 13.03% for the full year and an enticing dividend yield of 3.72%. Analysts are bullish on PLD, with sixteen ratings indicating a moderate buy sentiment. The consensus price target forecasts an impressive 30% upside, reflecting confidence in the company's long-term prospects despite short-term market fluctuations. CVS Health Corporation CVS Health Today CVS CVS Health $67.18 -0.15 (-0.22%) 52-Week Range $64.41 ▼ $83.25 Dividend Yield 3.96% P/E Ratio 10.40 Price Target $89.44 Add to Watchlist , a leader in the U.S. healthcare sector offering pharmacy benefit solutions, is rated as a top dividend stock. CVS boasts a nearly 4% dividend yield and a P/E ratio of 10.42, indicating extreme value and making it a highly attractive option for value investors on those metrics alone. Its oversold RSI of 26.62 adds to its appeal. Analysts are bullish, with a moderate buy rating and a 32% potential upside based on the consensus price target. Home Depot Inc. Home Depot Today HD Home Depot $335.09 +3.11 (+0.94%) 52-Week Range $274.26 ▼ $396.87 Dividend Yield 2.69% P/E Ratio 22.19 Price Target $375.96 Add to Watchlist has fallen dramatically over the previous month, off almost 16.5% from its 52-week high. However, with an oversold RSI of 29.27 and the stock finding support near its critical 200-day SMA, now might be the opportune moment to invest. HD is trading with a 21.98 P/E and offers a dividend yield of almost 3%. The company has a more bullish rating than other retail and wholesale companies and the S&P 500 consensus rating, both rated hold. Based on twenty-six analyst ratings, HD is a moderate buy with a consensus target forecasting over 13% upside. XP Inc. XP Today XP XP 52-Week Range $34.53 ▼ $52.94 Dividend Yield 6.27% P/E Ratio 14.73 Price Target $28.40 Add to Watchlist provides a host of financial products in Brazil, has a market capitalization of $11.5 billion, and an above-average dividend yield of 6.42%. The stock broke down from a multi-month consolidation earlier this month and has since fallen into oversold territory, trading with a 21.14 RSI and P/E of 14.37. XP projects earnings growth of 18.29% for the full year and has bullish analyst ratings. The stock has a moderate buy rating based on six analyst ratings. Most recently, Morgan Stanley downgraded the name to equal weight; however, its price target still forecasts an almost 14% upside. The stock’s consensus price target of $28.40 forecasts a nearly 40% upside. Americold Realty Trust Inc. Americold Realty Trust Today COLD Americold Realty Trust $22.24 -0.09 (-0.40%) 52-Week Range $22.22 ▼ $33.90 Dividend Yield 3.96% Price Target $30.33 Add to Watchlist is a leader in temperature-controlled logistics real estate and value-added services with a dividend yield of 3.94%. Year-to-date, the stock has been in a steady downtrend, falling over 26%. However, with the stock now trading in oversold territory with a 27.8 RSI, bullish ratings, and impressive projected earnings, it might be entering a buy zone. Based on nine analyst ratings, the stock has a moderate buy rating and price target of $30.33, forecasting over 35% upside. Most recently, on April 25, Wells Fargo initiated coverage on the name with a price target of $24, forecasting close to 7% upside. Before you consider Americold Realty Trust, 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 Americold Realty Trust wasn't on the list. While Americold Realty Trust currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
3 High-performing Stocks That Could Rip Once Markets Turn Back Up 2024-04-26 12:59:00+00:00 - Key Points Alphabet shares hit a new high earlier this month and have managed to stay effectively flat amidst all the selling. It’s a similar story with Exxon, who are already moving higher again from a minor dip two weeks ago. Wells Fargo is another one with a ton of upside potential, and investors should be watching closely. 5 stocks we like better than Exxon Mobil With the S&P 500 index, and equities in general, having had their worst run of red days so far this year, almost every stock has seen losses in recent weeks. This includes names of all sizes, and from across all industries; as the reason for the dip, a surprise jump in inflation is effectively bad for everyone. But for those of us on the sidelines, it means that some interesting entry opportunities could be opening up, as otherwise quality names get unfairly dragged down. One of the better ways to spot these stocks is to look for those that were outperforming their peers all through Q1. To help get you started, here are 3 such stocks below. Get Exxon Mobil alerts: Sign Up Alphabet Today GOOGL Alphabet $171.95 +15.95 (+10.22%) 52-Week Range $103.54 ▼ $174.71 P/E Ratio 26.37 Price Target $187.82 Add to Watchlist Alphabet have been ripping higher since November of last year when the risk-on sentiment started sweeping equities. They dipped a little through February before recovering, and while the major indices have been softening since the first week of April, Alphabet actually hit a fresh all-time high on the 12th. This is indicative of some real momentum behind the stock, and whereas the tech-heavy NASDAQ index has fallen by as much as 5% since then, Alphabet shares have managed to stay effectively flat. This past week alone has seen the team at KeyCorp reiterate their Overweight rating on Alphabet shares while also boosting their price target to $175. This echoed the update from Jefferies last week, who did the same but with an even higher price target of $180. From the $156 that Alphabet shares closed at on Thursday, that’s pointing to at least a further upside of some 15%. With shares barely down even when the rest of the market has been hurting, we can expect that gap to be closed quite quickly once the broader market turns back up. Exxon Mobil Today XOM Exxon Mobil $117.96 -3.37 (-2.78%) 52-Week Range $95.77 ▼ $123.75 Dividend Yield 3.22% P/E Ratio 14.46 Price Target $132.28 Add to Watchlist Energy giant Exxon’s story is similar. Though in a completely different industry, their shares also hit a fresh all time high earlier this month. Despite equities in general seeing a mass rush for the exit, they have remained stubbornly buoyant. Much of this would have been based on investors' optimism for the company’s fiscal Q1 earnings, which were released on Friday morning. Early indications suggest it will be well received as a solid report, with a slight miss in earnings per share more than made up for by a better-than-expected revenue print. Regardless, such is the momentum behind Exxon shares that even if we were to see a dip after Friday’s report, there are enough reasons to view that as a buying opportunity. Piper Sandler, UBS Group and Scotiabank are just a handful of the analyst teams that have reiterated Buy or Overweight ratings on Exxon this month alone, with a street-high price target of $150 pointing to a potential upside of some 25%. Wells Fargo & Company Today WFC Wells Fargo & Company $59.91 -0.02 (-0.03%) 52-Week Range $36.40 ▼ $61.76 Dividend Yield 2.34% P/E Ratio 12.51 Price Target $58.85 Add to Watchlist Last up is Wells Fargo, which has been a laggard compared to its bigger peers in recent years but has been one of the top performers in recent months. Its shares have been up more than 50% since November, and, if anything, the current selloff is being used as a breather before the next phase of the rally. They’ve dropped less than 3% from the rally’s peak, hit on Tuesday, and its shares look good value to start ripping again if the broader equity market continues turning north next week. Morgan Stanley and the Argus team rated them as Overweight. Wells Fargo’s street-high target of $67 suggests an upside of around 15% from the current price, too. Investors should look for shares to close above $60 going into the weekend, which would help form a solid level of support from which to move on next week. Before you consider Exxon Mobil, 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 Exxon Mobil wasn't on the list. While Exxon Mobil currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Microsoft Fires a Trend Following Signal: Targets Move Higher 2024-04-26 12:40:00+00:00 - Key Points Microsoft had a solid quarter driven by demand for AI and its growing ability to deliver. Analysts are raising their targets and see at least a 15% upside from pre-release prices. Microsoft is a winner in AI, and winning it for investors. 5 stocks we like better than Microsoft Microsoft NASDAQ: MSFT stock entered a correction before the Q3 earnings release, setting it up for a trend following signal that is now in play. The Q3 results reveal a classic supply-and-demand imbalance underpinning results, leading to outperformance and driving the market higher. The imbalance favors Microsoft and is centered on AI. The company ramped spending on CAPEX, including AI infrastructure, by 79% over the last year, yet still needs to meet the demand. That fact offsets plans to increase CAPEX again, leading to increased revenue and sustained growth over the next twelve to eighteen months. Analysts cheer the news. The first dozen revisions to hit the wires include twelve price target increases that have the consensus, up 35% YOY and 7.5% in the last 30 days, moving higher. The consensus implies a 9% upside from the prerelease price point, but the new range is much better. The new range implies a 16.5% upside at the low end. Get Microsoft alerts: Sign Up Aside from the strength of AI, the primary takeaway is that the established, blue-chip, leading tech companies command the lion's share of AI and will dominate the industry as it moves forward. Reminiscent of the company’s developer conference earlier this year, the release was a name-dropping event highlighting the importance of NVIDIA NASDAQ: NVDA and Advanced Micro Devices NASDAQ: AMD accelerators, Oracle NYSE: ORCL and SAP NYSE: SAP database workloads and Microsoft’s importance as the go-to source for infrastructure and services by big businesses like The Coca-Cola Company NYSE: KO. Microsoft has a Solid Quarter, Lifts Guidance Microsoft Today MSFT Microsoft $406.32 +7.28 (+1.82%) 52-Week Range $295.25 ▼ $430.82 Dividend Yield 0.74% P/E Ratio 35.18 Price Target $452.61 Add to Watchlist Microsoft had a stunning quarter with net revenue of $61.9 billion, growing 17.1% YOY and outpacing the consensus estimates by 160 basis points. The 160 basis point beat isn’t substantial aside from the fact analysts have been raising their estimates for the past year. Growth was led by a 21% gain in Intelligent Computing, a 17% gain in More Personal Computing and a 12% increase in Product & Business Processes. Regarding the cloud and AI, Microsoft Cloud grew by 23%, while Azure led with 31%. Margin news is also favorable. The company widened its gross and operating margins due to sales growth, increased leverage, and spending discipline. The operating margin widened by 200 basis points to leave the GAAP earnings are $2.94 or up $0.11 compared to last year and $0.11 better than expected. GAAP earnings grew slower than revenue due to increased CAPEX spending, which drives growth and leads to higher cash flow and free cash flow. Free cash flow grew by 31% and is expected to remain solid through year-end and into the next fiscal year. Guidance is mixed but reveals the market was expecting the worst. As it is, the company forecasts FQ4 revenue in a range just shy of the consensus, but the full-year tally is ahead of the mark due to the Q3 strength. Because the company shows momentum and is investing heavily to meet demand, it will likely outperform relative to today’s estimates over the next few quarters to eighteen months. Microsoft’s Valuation is not a Pressing Concern Microsoft is among the most highly-valued blue-chip tech stocks today, but it is not a concern. The 35X P/E multiple is not a concern because this company is delivering on the hope for AI. It is growing, sees robust demand, and is working hard to meet it. Estimates for the next fiscal year bring the valuation down to a more reasonable 29X, and the estimates are likely cautious. The technical action is favorable. The market is up more than 3% following the news and confirming support at the 150-day EMA. The bounce from the EMA is a trend-following signal that will likely result in a move up to $440 or higher. $440 aligns with the current consensus target, a target foreshadowed by prior price action, and is the minimum move indicated. Because the analysts are leading the market to the $500 region, a 20% to 25% upside is still possible. Before you consider Microsoft, 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 Microsoft wasn't on the list. While Microsoft currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Google parent reports another quarter of robust growth, rolls out first-ever quarterly dividend 2024-04-26 05:52:00+00:00 - Google’s corporate parent Alphabet Inc. on Thursday released a quarterly report showing it’s still reaping double-digit revenue gains from its digital advertising empire while sowing potentially lucrative new ground in artificial intelligence. The results for the first three months of the year provided the latest evidence that Google has regained its momentum after an unprecedented downturn in 2022 coming out of the pandemic. Alphabet punctuated its renewed vigor by also disclosing plans to begin paying shareholders a quarterly dividend for the first time since since Google went public 20 years ago. It’s something that two older technology powerhouses, Microsoft and Apple, have been doing for years. Alphabet's quarterly dividend of 20 cents per share will be paid June 17. Investing.com analyst Thomas Monteiro praised the decision to pay a dividend as “a breath of fresh air for the tech market” that should also make investors more likely to support the increased amounts that Google will likely need to spend on developing AI products that could take years to pay off. In the January-March period, Alphabet’s revenue rose 15% from the same time last year to $80.54 billion, which surpassed the projections of analysts surveyed by FactSet Research. It marked the fourth consecutive quarter of accelerating year-over-year revenue growth for the Mountain View, California, company. Alphabet earned $23.66 billion, or $1.89 per share, a 57% increase from last year's comparable quarter. The earnings per share also eclipsed the analyst estimates that steer investors. “We are incredibly well set up, given the innovation path we are on,” Alphabet CEO Sundar Pichai told analysts during a Thursday conference call. The company's stock price soared by nearly 13% in Thursday's extended trading after the news came out. That reaction was a stark contrast to how investors responded to a report covering the same quarter from Facebook's parent. Meta Platforms also reported a surge in ad revenue but provided a disappointing outlook for the April-June period, while also warning its profits would be squeezed by increased spending on AI technology. If Alphabet's shares move in a similar trajectory during Friday's regular trading session, the stock will hit a new all-time high that will push the company's market value above $2 trillion. As has been the case since throughout the company's history, most of the money came in through a digital advertising network anchored by Google’s dominant search engine. Google’s ad revenue totaled $61.66 billion in the first quarter, up 13% from last year. Story continues Despite the ongoing success, Google is facing dual threats that could threaten its future growth. The U.S. Department of Justice is taking aim at its search engine a lawsuit alleging the company has abused its power by negotiating lucrative deals with Apple and other companies to give it an unfair advantage over potential rivals, stifling innovation as well as competition. After a two-month trial last fall, the closing arguments in the biggest U.S. antitrust case in a quarter are scheduled to unfold next week and a federal judge is expected to rule whether Google has been breaking the law by the end of this year. People also may not need to rely as much on Google’s search information to answer their questions and find other information as the artificial intelligence technology that Google, Microsoft and other industry stalwarts are building becomes more sophisticated. If AI gradually supplants the role that Google’s search engine has filled for the past quarter century, Alphabet’s ad sales also could dwindle. For now, AI is helping to fuel rapid growth in Google’s cloud computing division, which saw its first-quarter revenue climb 28% from last year to $9.57 billion. But the cloud division also has become a tinder box for Google management as dozens of employees have staged protests over a $1.2 billion contract with the Israeli government that includes AI technology as part of Project Nimbus. The protesting employees believe Project Nimbus is being lethally deployed by the Israeli military in the Gaza war — a contention Google has denied. The divisive issue came to head earlier this month during an employee sit-in at Google offices in Sunnyvale, California, and New York that resulted in more than 50 workers being fired. Alphabet ended March with nearly 181,000 employees, a decrease of nearly 10,000 workers from the previous year. Management has cycled through several rounds of mass layoffs to help boost profits while Google ramps up its spending on AI technology.
Snap beats first-quarter expectations, shares jump 25% 2024-04-26 05:15:00+00:00 - By Sheila Dang (Reuters) -Snap beat Wall Street's expectations for quarterly revenue and user growth on Thursday, as improvements to its advertising system delivered results faster than anticipated. Shares of Snap spiked 25% to $14.32 in after-market trading. The owner of photo messaging app Snapchat has been working over the past year to improve how it targets ads to users and simplify the way people interact with the ads. The company has historically struggled to compete against much larger rivals like Facebook owner Meta Platforms for digital ad revenue. Revenue during the first quarter ended March 31 was $1.2 billion, up 21% from the prior-year quarter and beating the analyst consensus estimate, which was $1.12 billion according to LSEG data. In a letter to shareholders, Snap said its business was improving faster than it expected due to the upgrades of its ad system and higher demand for features that help brands drive sales or website clicks. "Years of diligent work are beginning to pay off for Snap's ad business," said Emarketer senior analyst Max Willens, adding that the quarterly report "suggests that Snap may have a strong year ahead." Snap forecast a rosy picture for the second quarter, saying it expects revenue between $1.23 billion and $1.26 billion. The guidance beat analyst expectations of $1.22 billion. Daily active users of Snapchat grew to 422 million during the first quarter, beating analyst expectations of 419.6 million. On Tuesday, the U.S. Senate passed a bill that gives Chinese tech company ByteDance up to one year to divest its wildly popular video app TikTok, or else the app will be banned in the U.S. Snap introduced its TikTok-like feature called Spotlight in 2020, and ad buyers have told Reuters that Snap will be a beneficiary of some marketing budgets if TikTok is no longer available. Reuters reported on Thursday that ByteDance prefers to shut down TikTok if it exhausts its legal options for fighting the legislation. Snap said it expects to grow to 431 million users in the second quarter. The Santa Monica, California-based company added that it expects its quarterly infrastructure cost per user to be between 83 cents 85 cents for the rest of this year. (Reporting by Sheila Dang in Austin, TexasAdditional reporting by Jaspreet Singh in BengaluruEditing by Matthew Lewis)
Intel reports better than expected Q1 earnings but falls short on revenue outlook. Stock slides more than 5%. 2024-04-26 04:28:00+00:00 - Intel (INTC) announced its first quarter earnings results after the bell on Thursday, beating analysts' expectations on the top and bottom lines. But the company's Q2 outlook fell short of Wall Street's estimates, sending the stock sliding. Intel said it anticipates Q2 revenue of between $12.5 billion and $13.5 billion. Analysts were anticipating $13.63 billion for the coming quarter. Intel is looking to grow its AI market share by challenging rivals Nvidia (NVDA) and AMD (AMD) with its new Gaudi 3 AI accelerator while hoping it can woo consumer and enterprise customers with its AI PC lineup. The company reported earnings adjusted per share (EPS) of $0.18 on revenue of $12.72 billion. Wall Street was expecting an EPS of $0.13 and revenue of $12.71 billion, according to consensus data compiled by Bloomberg. Intel reported a loss per share of $0.04 on revenue of $11.7 billion in the same quarter last year. “We are making steady progress against our priorities and delivered a solid quarter,” Intel CEO Pat Gelsinger said in a statement. “Strong innovation across our client, edge and data center portfolios drove double-digit revenue growth in Intel Products. Intel CEO Pat Gelsinger presents chips with a new production technology. (Photo by Andrej Sokolow/picture alliance via Getty Images) (picture alliance via Getty Images) Intel is in the midst of transforming itself from a designer and manufacturer of its own chips to a manufacturer of chips for third-party clients. So far, the company said it has six customers, including Microsoft (MSFT), which is developing its own custom chips. The first quarter marks the first time Intel is reporting earnings under its new corporate structure. The company now reports revenue from its Client Computing Group, Data Center and AI, and Network and Edge divisions under its Intel Products segment. Altera, Mobileye, and Other now report under the All Other Segment, while Intel’s Foundry business reports under Intel Foundry. In announcing the restructuring, however, Intel also revealed that its foundry business lost $7 billion in the last year. For the quarter, Intel saw Intel Products revenue of $11.9 billion, up 17% year over year on strong performance from its Client Computing Group. That segment saw revenue of $7.5 billion, up 31% thanks to a rebound in the PC market. Foundry revenue totaled $4.4 billion, down 10% year over year, while All Other revenue came in at $775 million, down 46% year over year. The move to a foundry model puts Intel into direct competition with TSMC (TSM), the world's largest chip manufacturer. But there are doubts that the third-party foundry business will ever be a significant source of revenue. Intel is looking to capitalize on the AI craze through the PC market with its new Core Ultra processors. The chips, which feature built-in neural processing units (NPUs), are designed to run AI models on your laptop, rather than in the cloud. The idea is that you can take advantage of AI apps without having to connect to the web or share your data. Story continues AMD, Intel’s chief rival in the PC space, is also offering its own AI PC chips, while Nvidia says laptops running its chips are considered AI PCs as well. And on Wednesday, Qualcomm debuted its Snapdragon X Plus chip to go along with its previously announced Snapdragon X Elite as potential rivals to Intel and AMD. Qualcomm (QCOM) claims its chips can outpace certain Intel Core Ultra and AMD chips in terms of performance and battery life. The company’s new processors will go on sale later this year. Subscribe to the Yahoo Finance Tech newsletter. (Yahoo Finance) Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley. For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here Read the latest financial and business news from Yahoo Finance.
Bank Of America Thinks '2024 Is Starting To Look Like 2015 But In Reverse' While Jamie Dimon Warns 2024 Looks Like The 1970s 2024-04-26 00:40:00+00:00 - Bank Of America Thinks '2024 Is Starting To Look Like 2015 But In Reverse' While Jamie Dimon Warns 2024 Looks Like The 1970s Bank of America Corp. (NYSE:BAC) analysts recently released a note predicting that the Federal Reserve will only cut rates once this year, compared with their previous prediction of four cuts. "2024 is starting to look like 2015 but in reverse. Then the Fed signaled hikes it could not deliver; now the Fed may be signaling cuts that the inflation data do not justify," Bank of America economist Michael Gapen said in the note. "The acceleration of inflation this year makes a cut prior to December challenging in our view." Don't Miss: In 2015, the Fed increased interest rates and reduced support for the American economy, despite a minimal increase in inflation rates of 0.12%. March saw a 3.5% rise in the consumer price index greater than the 3.2% jump for the 12 months ending in February, driven mainly by significant increases in food and beverage costs, according to the U.S. Bureau of Labor Statistics. Juice and drink prices soared by 27.5%, while egg prices climbed by 4.6%. Trending: Invest alongside execs from Uber, Facebook and Apple in this wellness app Transforming a $5.6 TRILLION dollar industry. While 2015 could be viewed as a great buying opportunity for U.S. stocks, with the SPDR S&P 500 ETF Trust (NYSE:SPY) up about 142% from the start of that year to today, others aren't so sure it's the right parallel. For example, JPMorgan Chase & Co. CEO Jamie Dimon sees a different, and perhaps more ominous, setup ahead for markets given how much spending is needed to tackle today's pressing issues. Specifically, he shares his view that "$2 trillion of fiscal deficit, the infrastructure and IRA act, the green economy, the remilitarization of the world, the restructuring of trade are all inflationary,” with that looking “like the 1970s to me." Reflecting on whether investors are ready for higher-than-expected inflation, Dimon ominously said he's "not sure." Meanwhile, the Fed seems to be delaying any interest rate cuts until inflation is more manageable. In an interview with Bloomberg on April 15, Federal Reserve Bank of New York President and CEO John Williams said, "We will need to start a process at some point to bring interest rates back to more normal levels, and my own view is that process will likely start this year." Keep Reading About Startups: Invest like a millionaire. Exclusive opportunity to invest in Epic Games $17 billion gaming empire. Story continues "ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now! Get the latest stock analysis from Benzinga? This article Bank Of America Thinks '2024 Is Starting To Look Like 2015 But In Reverse' While Jamie Dimon Warns 2024 Looks Like The 1970s originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Students Demand Universities Sell Off Israel-Related Stocks, Hundreds Arrested In Nationwide Protests: 'Stop Investing In This Genocide' - Advanced Micro Devices (NASDAQ:AMD), Airbnb (NASDAQ:ABNB) 2024-04-25 22:08:00+00:00 - Loading... Loading... Hundreds of people, mostly students, have been arrested this week across the country as pro-Palestine protests spread at college campuses. Protesters are calling for a cease fire and have now added a new demand: they expect their universities to sell off stocks in companies that directly or indirectly benefit from Israel's actions in Gaza and the West Bank. Columbia University in New York has shifted to online classes after over 100 pro-Palestinian protesters were arrested last Thursday. Protests continued this week at several universities in the country where local police departments arrested hundreds more. At New York University, 133 protesters were taken into custody on Wednesday and later released with summonses to appear in court. At least 57 protesters were arrested in Austin on Wednesday as a protest sparked on the University of Texas campus, according to a spokeswoman for the Travis County Sheriff's Office, cited by the Associated Press. Over 90 people were arrested on Wednesday night at the University of Southern California according to the Los Angeles Police Department. The university has since closed the campus and said it expects anyone trespassing to be arrested, in an effort to stop the protests. Two more people were arrested at Ohio State University. Seventeen were arrested at Emory University in Atlanta, Georgia. In Boston, 108 people were arrested in an Emerson College encampment, while 48 were arrested at Yale University in New Haven. More encampments were put together on campuses at the University of Michigan, University of Minnesota and University of California, Berkeley. Israeli President Benjamin Netanyahu said on Wednesday that "what's happening in America's college campuses is horrific." "Antisemitic mobs have taken over leading universities. They call for the annihilation of Israel. They attack Jewish students. They attack Jewish faculty," said Netanyahu, who has been widely criticized for the actions of Israel Defense Forces in Gaza, which have taken 34,000 civilian lives according to the Palestinian Health ministry. Read also: Israel Gears Up For Military Strike In Rafah Despite Biden’s Warning Students Call For Divestment From Israel Student protesters launched an encampment in the Harvard University Yard on Wednesday, demanding the university to "divest from Israel's war in Gaza," the Harvard Crimson reported. Harvard boasts the largest university endowment in the world, at about $50 billion, which is made up of approximately 14,000 funds. SEC filings by the Harvard Management Company, which operates the investments, don't show Israeli companies among its largest investments. Top allocations include stocks from the technology sector, including Alphabet Inc Class C GOOG, Meta Platforms Inc META, NVIDIA Corp NVDA, Advanced Micro Devices, Inc. AMD and ASML Holding NV ASML. Protesters at several other colleges also had similar demands, calling for a sell-off of all assets associated with supporting the war effort in Gaza or the Israeli government. The strategy is meant to put symbolic pressure on Israel to reach a cease-fire. The demand is seen as a clear way in which universities can take direct action against Israel. Loading... Loading... While the stakes that universities hold on the targeted companies are not enough to cause significant disruption on an economic scale, the action would be considered a win by the protesting bodies as well as a symbolic gesture that could influence public opinion on the issue. Columbia University student and protest leader Mahmoud Khalil said to NBC News that his university "should stop investing in this genocide," as protesters sang to the slogan of "disclose, divest, we will not stop, we will not rest." Columbia President Minouche Shafi marked Friday as the deadline for dismantling the ongoing encampment at the university before having "to consider alternative options.” What "divesting" actually means varies from protest to protest. According to the NY Times, protesters at Yale and Cornell demanded for a divestment in all weapon manufacturers including Boeing Co BA. At Columbia on the other hand, protesters see companies that are indirectly benefiting from Israeli as targets for divestment, including Alphabet-owned Google, which has a $1.2-billion contract with the Israeli government for cloud services. Last week, it became known that Google fired 28 employees who participated in a sit-in protesting the same contract from within the company. The contract also includes Amazon.com Inc AMZN. Airbnb Inc ABNB was also targeted by students because it has open listings of lodging in areas of the West Bank occupied by Israel. By Thursday, no major U.S. university had publicly announced plans to divest in companies following protester's demands. Now read: Israeli Military Intel Chief Resigns Over Hamas Attack Failures: ‘I Have Carried That Black Day With Me Ever Since’ Shutterstock image: Supporters from various groups and some students continue pro-Palestinian protest at Columbia University in New York on April 19, 2024, as part of “March for Divestment.”