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Teen Girls Confront an Epidemic of Deepfake Nudes in Schools 2024-04-08 15:45:30+00:00 - Westfield Public Schools held a regular board meeting in late March at the local high school, a red brick complex in Westfield, N.J., with a scoreboard outside proudly welcoming visitors to the “Home of the Blue Devils” sports teams. But it was not business as usual for Dorota Mani. In October, some 10th-grade girls at Westfield High School — including Ms. Mani’s 14-year-old daughter, Francesca — alerted administrators that boys in their class had used artificial intelligence software to fabricate sexually explicit images of them and were circulating the faked pictures. Five months later, the Manis and other families say, the district has done little to publicly address the doctored images or update school policies to hinder exploitative A.I. use. “It seems as though the Westfield High School administration and the district are engaging in a master class of making this incident vanish into thin air,” Ms. Mani, the founder of a local preschool, admonished board members during the meeting.
Google to Tone Down Message Board After Employees Feud Over War in Gaza 2024-04-08 15:45:07+00:00 - For nearly 14 years, an online message board called Memegen has served as a virtual water cooler for Google employees. Memegen has been a place for employees to offer blunt critiques of their bosses, to share gallows humor about job cuts or to joke about getting notes from their parents to excuse them from returning to the office after the pandemic. But Google executives, after watching employees snipe about the war in Gaza in recent months, are making big changes to turn down the temperature on their company’s beloved message board, according to documents reviewed by The New York Times. One of the most significant tweaks to Memegen will be the removal of a virtual thumbs-down. Well-liked memes rise to the top of Memegen based on those votes. Unpopular ones quickly disappear from view. Another change will be the removal of metrics that allow people to see how popular other employees’ memes have become.
Spain will scrap ‘golden visas’ that allow wealthy non-EU residents to stay if they buy real estate 2024-04-08 15:08:41+00:00 - MADRID (AP) — Spain’s government said Monday it plans to scrap so-called “golden visas” that allow wealthy people from outside the European Union to obtain residency permits on investing more than half a million euros (dollars) in real estate. Socialist Prime Minister Pedro Sánchez said his minority coalition government would study the reform in the weekly Cabinet meeting Tuesday. Speaking Monday, Sánchez said the reform was part of the government’s push to make housing “a right, not a speculative business.” The government says some 10,000 such visas have been issued since the measure was brought into law in 2013 by a previous right-wing Popular Party government as a means to attract foreign investors. “Golden visas” are strongly criticized for spurring property price hikes and speculation in the housing sector. Soaring house prices have long been a major problem for many Spaniards, particularly in the country’s major cities.
Spirit to defer Airbus plane deliveries, furlough 260 pilots this year 2024-04-08 14:29:17+00:00 - Spirit Airlines is deferring all aircraft on order from Airbus that were scheduled to be delivered in the second quarter of 2025 through the end of 2026, the discount carrier said Monday. Spirit said it came to an agreement with the European plane manufacturer to delay delivery of the planes until 2030 and 2031. “Deferring these aircraft gives us the opportunity to reset the business and focus on the core airline while we adjust to changes in the competitive environment,” said Spirit President and Chief Executive Ted Christie. “In addition, enhancing our liquidity provides us additional financial stability as we position the company for a return to profitability.” Spirit said the deferrals will bolster Spirit’s liquidity by about $340 million over the next two years. Florida-based Spirit also said it plans to furlough 260 pilots effective Sept. 1 as a result of the deferrals and ongoing problems with the availability of Pratt & Whitney GTF engines. Pratt & Whitney recently agreed to compensate Spirit, which grounded 13 of the planes in question in January with the expectation that number would rise. Spirit estimated the compensation agreement with Pratt & Whitney would improve its liquidity by between $150 million and $200 million. Spirit shares rose less than 1% in morning trading to $4.45 a share. The company’s stock plummeted to all-time lows this year after its $3.8 billion merger with JetBlue was blocked by a federal judge who said the deal would harm competition and increase prices for air travelers. Before the JetBlue deal fell apart, the merger was considered a lifeline for the struggling Spirit, which last turned a full-year profit in 2019.
U.S. is pushing China to change a policy threatening American jobs, Treasury Secretary Yellen says 2024-04-08 14:17:00+00:00 - The Biden administration is pushing China to change an industrial policy that poses a threat to U.S. jobs, Treasury Secretary Janet Yellen said Monday after ending four days of talks with Chinese officials. She also said she and Chinese officials had "difficult conversations" about national security, including American concerns that Chinese companies are supporting Russia in its war in Ukraine. But the focus of her trip was industrial policy, and what the U.S. and Europe describe as manufacturing overcapacity in China. Wealthy nations fear a wave of low-priced Chinese exports that will overwhelm factories at home, undercutting prices from U.S. manufacturers and risking job losses. Still, Yellen also stressed that the U.S. is seeking "a healthy economic relationship with China." "During conversations this week, I underscored again that the United States does not seek to decouple from China," Yellen said at a press conference in Beijing. "Our two economies are deeply integrated, and a wholesale separation would be disastrous for both of our economies." But Yellen also cited the manufacturing of electric vehicles and their batteries as well as solar energy equipment — sectors that the U.S. administration is trying to promote domestically — as areas where Chinese government subsidies have driven rapid expansion of production. Meanwhile, China last month filed a complaint with the World Trade Organization, alleging the Inflation Reduction Act, signed into law by President Joe Biden, distorts fair competition due to its electric-vehicle subsidies. .@POTUS and I are clear-eyed about the complexities of the U.S.-China relationship. Our priorities include protecting our national security, advancing a healthy economic relationship with a level playing field for American workers and firms, and cooperating on global challenges. — Secretary Janet Yellen (@SecYellen) April 8, 2024 "China is now simply too large for the rest of the world to absorb this enormous capacity. Actions taken by the PRC today can shift world prices," she said, using the acronym for China's official name, the People's Republic of China. "And when the global market is flooded by artificially cheap Chinese products, the viability of American and other foreign firms is put into question." She said the U.S. would host Chinese counterparts for their fourth economic and financial working groups meetings next week "where these issues will be discussed at length." Xi Jinping's goals Last September, the U.S. and China formed working groups in an effort to ease tensions and deepen ties between the two nations. The upcoming discussions will coioncide with the IMF and World Bank Spring Meetings. It's unclear how China will respond to such calls. European officials have repeatedly raised the issue on visits to China with no sign of any change on the Chinese side. Moreover, one of leader Xi Jinping's major goals is to build the nation into a major power so it doesn't feel compelled to bend to outside pressure. But overcapacity also affects China — price wars in the electric vehicle sector are expected to drive some makers out of business — and experts have called for better coordination of policies designed to promote new technologies. The government agreed during Yellen's visit to start talks on what the two sides called "balanced growth." "We intend to underscore the need for a shift in policy by China during these talks," Yellen said at a news conference held outdoors on a balmy spring day at the U.S. ambassador's residence in Beijing. Advocating for higher consumer spending in China in response to its large government subsidies to solar, EV and lithium-ion battery industries, Yellen said: "If consumer spending were higher as a share of GDP, there would be less need to have such large investment going into building supply" of green energy products. Low-cost Chinese steel On Saturday, the official Xinhua News Agency said that the Chinese side had "responded fully to the issue of production capacity" during Yellen's talks with Vice Premier He Lifeng, the lead person for China-U.S. economic and trade affairs. More than a decade ago, the Treasury secretary said, a flood of "below-cost Chinese steel ... decimated industries across the world and in the United States. I've made clear that President Biden and I will not accept that reality again." On the war in Ukraine, Yellen warned that any banks that facilitate the sale of military or dual-use goods to Russia could face U.S. sanctions. "I stressed that companies, including those in the PRC, must not provide material support for Russia's war and that they will face significant consequences if they do," she said. Russian Foreign Minister Sergey Lavrov arrived in Beijing on Monday for talks on the Ukraine conflict and other issues. Asked about Yellen's warnings, Chinese Foreign Ministry Spokesperson Mao Ning said that the U.S. "should not smear or attack the normal state-to-state relations between China and Russia and should not harm the legitimate rights and interests of China and Chinese enterprises." Yellen, the former chair of the U.S. Federal Reserve, met with China's central bank governor, Pan Gongsheng, earlier Monday.
The 5 Hottest CEO Stock Purchases So Far This Year 2024-04-08 14:13:00+00:00 - Key Points Insider buying can be a telling indicator of future share prices, and no insider is better than the CEO. However, CEO buying isn't enough to support price action; it takes institutional and analyst involvement to keep a stock running. This is a look at the five hottest CEO buys from Q1 and if their share prices can continue higher in Q2. 5 stocks we like better than Sphere Entertainment Insider buying is good. It shows management’s confidence in a business, helping to support investor sentiment, and no insider is more significant than the CEO. Who else is as up-to-date on a business's health and outlook as the person in charge? This is a list of the five most significant CEO purchases in Q1 2024 based on dollar volume. Get Sphere Entertainment alerts: Sign Up #5 Allegion CEO John Stone Bought Shares In Q1 Allegion NYSE: ALLE is a Dublin-based security firm focused on doors. It manufactures and supplies mechanical and electronic devices for door security, including software and operating systems for IoT devices. The company is applying AI today and generating profits. John Stone, the company CEO, purchased shares in Q1 worth more than $1.3 million, putting him and Allegion in the #5 position. The company is expected to produce solid results this year, but the share price may need help moving higher. Analysts' sentiment has dimmed due to the recent rally in share prices and valuation. They rate the stock at Hold and see it moving 5% lower at the consensus. The consensus is up compared to last year but flattened following the latest earnings report, which is a drag on the price action. Other insiders, including several senior VPs, have been selling, which may add to the headwinds. #4 Marpai, Inc CEO Triples Holdings In Q1 Marpai, Inc.’s NASDAQ: MRAI CEO made two purchases in Q1 that effectively tripled his position. A director's purchase compounded his buys, bringing the total inside holding to 61%. The buys are notable because other Q1 news includes better-than-expected results and an outlook for hyper-growth over the next few years. The company’s AI-powered business services are aimed at disrupting the billion-dollar self-insured employer marketplace, and they are gaining traction. A well-received investor conference led to an upgrade to Buy from Hold by Maxim Group. Maxim set a price target of $6 or more than 150% upside from the current price action. #3 Keurig Dr Pepper CEO Sinks $5 Million Into KDP Shares In March, Keurig Dr Pepper’s NASDAQ: KDP CEO bought nearly $5 million of KDP shares. Added to the CFO's purchase, insider buys topped $750 million for the quarter but were offset by institutional selling. Major shareholder JAB Holding has been trimming its position but still holds over 20% of the stock. The CEO's purchase brings his total to about 0.22% and insider holdings to 0.8%. Institutions other than JAB Holdings have been buying on balance for more than five quarters, and their activity is steady. Ten analysts rate this consumer staples stock as a Moderate Buy and view it as a deep value, trading beneath the low end of the target range, with more than a 15% upside at the consensus. #2 Snowflake’s New CEO Buys Another $5 Million in Shares Snowflake NYSE: SNOW made big news when it announced a surprise CEO transition. The new CEO is Sridhar Ramaswamy, an existing exec, and he celebrated the appointment by buying more shares. His purchase topped $5 million, bringing his holdings to over 224,000 shares. He holds about 0.06% of the company, insiders and major shareholders own about 8% together. Institutional activity is also bullish in Q1, ramping and spiking from Q4, with net buys double the sales. Institutions own about 65% of the stock; analysts rate it as a Moderate Buy with about 30% upside at the consensus. #1 Sphere Entertainment is the #1 Stock Bought By a CEO in Q1 Sphere Entertainment NYSE: SPHR, formerly Madison Square Garden, is #1 on the list of CEO buys. CEO James Lawrence Dolan made three purchases for $11 million. These are significant because they include the largest purchase by an insider and two additional trades on par with that amount. His holdings are nearly 1.5% of the company, bringing total insider and major shareholder ownership to 25%. Institutions are also buying and own a total of 92%. Analysts rate the stock as a Hold but see it trading significantly above the top-end of their target range. Before you consider Sphere Entertainment, 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 Sphere Entertainment wasn't on the list. While Sphere Entertainment currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Institutions Think This Consumer Stock Could Break Higher 2024-04-08 13:40:00+00:00 - Key Points The Fed's pivotal moment is creating a 'risk off' shift for Wall Street, now looking for the highest growth at the safest rate. PriceSmart has become one option for this strategy. It is considered a consumer staples name set to grow its EPS at above-industry-average rates. Goldman Sachs bought it in the past quarter, and price action suggests valuations could bring the stock to a much higher ceiling. 5 stocks we like better than Target Markets are preparing for the coming interest rate cycle proposed by the Federal Reserve (the Fed). Though most sectors have priced in this potential pivot, some have yet to reflect this trend higher. Over the past six months, the Consumer Discretionary Select Sector SPDR Fund NYSEARCA: XLY underperformed the broader S&P 500 by as much as 11%. Other sectors, such as technology stocks, outperformed the S&P by more than 5% during this period. Led by the all-time highs in names like Nvidia Cor. NASDAQ: NVDA, this cyclical shift has left much room for consumer discretionary stocks to catch up. Get Target alerts: Sign Up With U.S. consumer sentiment reaching levels not seen since 2021, Wall Street institutions like The Goldman Sachs Group Inc. NYSE: GS and the Vanguard Group saw fit to investigate the space. After bumping its position in PriceSmart Inc. NASDAQ: PSMT by 14.9% in the past quarter, Goldman’s $2.2 million investment gives Main Street lots to consider. PriceSmart: A Costco in Disguise While not as big as its primary business model competitor, Costco Wholesale Co. NASDAQ: COST, PriceSmart’s $2.5 billion market capitalization allows it to grow much faster than Costo and its $316 billion capitalization. Investors can see this play out in both companies’ financial quarters. Costco reported sales growth of 6% in the second quarter of 2024, while PriceSmart’s earnings presentation shows growth of 10.7% during the past 12 months. Money managers may shift their preferences to stocks that offer above-average growth in the coming quarters. Because traders think that the Fed could cut interest rates in May or June 2024, a trend spotted in the FedWatch tool offered by the CME Group Inc. NASDAQ: CME, the window for preferential treatment is closing. What is better than a stock offering discretionary and consumer staples products? A stock that does all that can still grow its earnings per share (EPS) by 19% over the next 12 months. Because PriceSmart’s business model is relatively interchangeable with Costco’s, Wall Street may prefer this EPS growth over Costco’s 9.4%. This EPS gap could be one reason PriceSmart stock outperformed Costco by nearly 6% over the past 3 months. Also, markets think it could keep going higher to break out of its $75 to $85 price channel. Price action considered, PriceSmart pushed out an 18.2% rally in the past year. In comparison, the variety store industry only managed to increase by 2.3%. Valuations Could Use a Boost On a price-to-book ratio spread, PriceSmart becomes the most attractive buy target. The stock’s 2.4x P/B ratio falls into an 85% discount to Costco’s 15.6x valuation despite being set to grow its EPS by more than double the rate. Another worthy mention in the space is Target Co. NYSE: TGT, which can be bought at a 6.1x P/B ratio. This valuation gives PriceSmart the upper hand, as it is discounted by 61% to Target’s multiple. There is a clear reason for this discount, which is also the same reason PriceSmart’s valuation could be higher. According to the company’s financials, Target's gross margins are 27%. PriceSmart, which sacrifices profits to serve a larger audience, operates on gross margins of 17% only. Of course, this dynamic would make Target a better proposition any day, but these aren’t regular times. As more and more Americans battle with stubborn inflation, alternative shopping places like PriceSmart could become the answer anyone is looking for. Thinking the stock could see better days, the Vanguard Group joined Goldman in its 4.5% boost to its PriceSmart position, approximately $11.3 million as of March 2024. As the volatility index (VIX) broke out to above 16%, a level not seen since October 2023, investors could be starting a ‘risk off’ rotation, giving PriceSmart’s model an opportunity to rise to the occasion and beat its much larger peers. Because PriceSmart operates in a relatively noncyclical sector but is still set to grow its EPS above the 13% average for the space, short interest on the stock declined by 9% in the past month. The stock now trades at a new 52-week high and is flirting with prices not seen since 2022 for what could become a more extended uptrend. Because the company reported 18% EPS growth in the latest quarter, analyst projections for 19% could potentially set the stock up for an earnings beat, the speculative thesis behind Wall Street’s buying. Before you consider Target, 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 Target wasn't on the list. While Target currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
JPMorgan's Jamie Dimon sounds alarm about possible worst risks to U.S. since WWII 2024-04-08 13:32:00+00:00 - Inflation, financial pressures lead more Americans to believe they need more in retirement savings Inflation, financial pressures lead more Americans to believe they need more in retirement savings 01:17 New York — The nation's most influential banker, JPMorgan Chase CEO Jamie Dimon, told investors Monday that he continues to expect the U.S. economy to be resilient and grow this year. But he worries geopolitical events including the war in Ukraine and the Israel-Hamas war, as well as U.S. political polarization, might be creating an environment that "may very well be creating risks that could eclipse anything since World War II." The comments came in an annual shareholder letter from Dimon, who often uses the letter to weigh in broad topics like politics, regulation and global events and what they might mean to JPMorgan Chase as well as the broader economy. "America's global leadership role is being challenged outside by other nations and inside by our polarized electorate," Dimon said. "We need to find ways to put aside our differences and work in partnership with other Western nations in the name of democracy. During this time of great crises, uniting to protect our essential freedoms, including free enterprise, is paramount." Jamie Dimon, chief executive officer of JPMorgan Chase & Co., poses for a photograph on the sidelines of the JP Morgan Global China Summit in Beijing, China in May 2019. Giulia Marchi / Bloomberg Speaking of Russia's invasion of Ukraine and Hamas' attack on Israel, Dimon said, "America and the free Western world can no longer maintain a false sense of security based on the illusion that dictatorships and oppressive nations won't use their economic and military powers to advance their aims — particularly against what they perceive as weak, incompetent and disorganized Western democracies. ... America needs to lead with its strengths — not only its military but also its economic, diplomatic and moral forces. And now we must do so as America's leadership is being challenged around the world. There is nothing more important." Dimon had particular concerns with continued large amounts of deficit spending by the U.S. government and other countries, as well as the need for countries such as the U.S. to remilitarize and continue to build out green infrastructure, all of which will likely keep inflation higher than investors expect. Because of these issues, Dimon said he is less optimistic than the broader market that the U.S. economy will achieve a "soft landing," which he defined as modest growth along with declining inflation and interest rates, compared to the broader market. While he says the investors are pricing in a "70% to 80%" chance of a soft landing, Dimon thinks the chances of such an ideal outcome are "a lot less" than that. "These significant and somewhat unprecedented forces cause us to remain cautious," he said. Like many other CEOs, Dimon said he sees promise in the use cases of artificial intelligence. The bank has found 400 use cases for AI so far, Dimon said, particularly in the bank's marketing, fraud and risk departments. The bank also is exploring using AI in software development and general employee productivity plans. "We are completely convinced the consequences (of AI) will be extraordinary and possibly as transformational as some of the major technological inventions of the past several hundred years: Think the printing press, the steam engine, electricity, computing and the Internet, among others."
Bargain Alert: Apple Shares Are Starting To Look Undervalued 2024-04-08 13:15:00+00:00 - Key Points Apple shares have had a tough start to the year and are lagging both the S&P 500 and their tech titan peers. Several headwinds have conspired to create an almost perfect storm of negative sentiment. However, it's starting to look like the worst-case scenario is priced in, and a buying opportunity could be opening up. 5 stocks we like better than Amazon.com It's been a funny couple of months for shares of Apple Inc NASDAQ: AAPL. Traditionally, one of the market leaders who you could nearly bet would be moving in lock-step with the likes of Meta Platforms NASDAQ: META or Amazon.com Inc NASDAQ: AMZN, this year has seen the iPhone maker's fortunes diverge significantly from its peers. Even against the benchmark S&P 500 index, Apple is trailing, with the former's 11% gain since the first week of the year now appearing very attractive against the latter's -9% drop. For context, Amazon is up about 30%, while Meta is in a class of its own with a 50% return so far this year. Get Amazon.com alerts: Sign Up The whole thing raises a ton of questions: Why did Apple have such a poor Q1? Will it continue? When does this become a buying opportunity that is too good to miss? Perfect Storm of Negative Updates Well, for starters, let's consider the headwinds the company has had to face because there have been several. It's true that Apple did manage to catch the initial wave of optimism that swept equities in November and tag a record high in the first half of December; it's been on the back foot since then. A fairly consistent run of negative updates has conspired to send investors running for the door and to keep them away for now. The big one is the antitrust lawsuit that was filed against Apple by the U.S. Department of Justice last month, alleging Apple has "violated the Sherman Act by using its iPhone to prevent other companies from offering competitive services." Needless to say, Apple is spooked and said in a statement that if successful, "it would hinder our ability to create the kind of technology people expect from Apple." While the current thinking on Wall Street is that the DOJ is unlikely to win the case outright in court and is more likely to result in a fine, it could take years to come to a conclusion. As a fresh negative headwind, it couldn't have come at a worse time for Apple stock. App developers in the European Union are now allowed to bypass the company's traditional 30% cut; Apple has thrown in the towel on its electric vehicle project, which CEO Tim Cook once called "the Mother of all AI projects," and there are signs that unit shipments for the iPhone are starting to look a little soft. Buying Opportunity Opening Up But with shares down 15% from their peak and back trading at 2021 levels, while the S&P 500 powers on to fresh highs, at what point does this turn into an entry opportunity? Well, there are reasons to think Apple shares are already undervalued and due for a pullback. Consider this: Apple's shares finished last week trading at $169, which is below six of the most recent analyst updates going back to the start of March. Morgan Stanley reiterated its Overweight rating on Apple shares towards the end of March and gave the stock a $220 price target. This echoed the Outperform rating from Wedbush that same week, only the latter giving Apple a $250 price target. DZ Group and UBS both reiterated their Hold ratings in the last week of March but maintained their price targets at $180 and $190, respectively. Loop Capital also rated Apple a Hold last week but with a refreshed price target of $170. Considering Getting Involved All this is suggesting that we're either approaching, or have very well already gone past the bottom for Apple shares. Short of any further negative updates, these refreshed price targets account for the impact of all the known negative headwinds Apple is dealing with. Depending on your appetite for risk and your belief in Apple's long-term potential, this could be the point at which people say, "The worst-case scenario is already priced in." Apple is still a beast, and Friday saw Citi name them as one of their top-rated Buy stocks with an estimated 27% return potential. Don't be surprised if that's just the first in a handful of bullish updates in the coming weeks. Before you consider Amazon.com, 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 Amazon.com wasn't on the list. While Amazon.com currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
As a Mississippi town reels from a devastating tornado, a displaced family finds its way home 2024-04-08 13:00:46+00:00 - ROLLING FORK, Miss. (AP) — As a deadly tornado barreled toward their home in the Mississippi Delta, Ida Cartlidge only had time to scoop up her 1-year-old son, Nolan, and hold him close. Cartlidge huddled with her husband and three sons on the living room floor of their Rolling Fork mobile home, its thin walls all that separated the family from 200 mph (320 kph) winds. Ida Cartlidge sits on a bed in a two-bed motel room in Rolling Fork, Miss., on Nov. 29, 2023. (AP Photo/Rogelio V. Solis) “I was holding my baby so tight. I said ‘Baby, I’m probably hurting you right now, but I just can’t let you go,’” she recalled. Then the tornado hit, and the home was gone. The twister launched Cartlidge into the air and pulled Nolan from her arms. She remembers seeing him floating above her, as though both were suspended in the air. She landed with a thud. Miraculously, Nolan fell on her chest. He was the only family member to escape the storm unscathed. FILE - Ida Cartlidge sits on a bed while her 1-year-old son Nolan sleeps in a motel room in Rolling Fork, Miss., on May 9, 2023 after their mobile home was destroyed by a deadly tornado in March. (AP Photo/Gerald Herbert, File) The tornado that destroyed Cartlidge’s home last March killed 14 of Rolling Fork’s roughly 1,700 residents and reduced the town to rubble as it charted a merciless path across one of the country’s poorest regions. For the people there, a complicated story of struggle and resilience has emerged in the year since the storm changed everything and exposed vulnerabilities many survivors had been dealing with long before March 2023. The Cartlidge family spent the next year in a cramped motel room in search of a more permanent home, like many of their displaced neighbors. “There’s still a lot of suffering,” Sen. Joseph Thomas, who represents Rolling Fork in the state Legislature, said in a recent interview. “And you’re looking at an area that was already depressed.” Rolling Fork is in Sharkey County, where the poverty rate hovers around 35% — nearly double Mississippi’s roughly 19% rate and triple the nation’s nearly 12% rate, according to the U.S. Census Bureau. The Sharkey County Courthouse remains boarded up on March 22, 2024, one year after a devastating tornado struck in Rolling Fork, Miss. (AP Photo/Rogelio V. Solis) A small sign is seen on a street corner in Rolling Fork, Miss., on March 22, 2024. The town of Rolling Fork has struggled to rebuild after a devastating tornado struck last year. (AP Photo/Rogelio V. Solis) Before the storm, Cartlidge, 33, and her husband, Charles Jones, 59, had forged a quiet life in a long, narrow three-bedroom, two-bath mobile home with their sons: Jakavien, 13, Amarii, 12, and Nolan. She worked in customer service for an appliance company and Jones was a mechanic for a local auto parts shop. Cartlidge suffered a crushed pelvis and broken shoulder in the tornado. Jakavien punctured a lung and shattered bones in his spine and shoulder blade. Amarri had deep lacerations on his back and ankles. Jones injured his ribs and spine. The mobile home park where they lived was also home to most of the 14 people who died in the tornado. Large families crowded into one- or two-bedroom units, which helped offset the financial strain endemic to a region where stable jobs are scarce. An American flag flies outside a damaged business in downtown Rolling Fork, Miss., on March, 22, 2024. (AP Photo/Rogelio V. Solis) Sharkey County lost nearly 400 jobs after the tornado, according to Rolling Fork Mayor Eldridge Walker. The tornado laid waste to about 300 structures, including numerous homes and businesses, which meant lost tax revenue for the city, he said. In February 2024, Walker wrote to Thomas pleading for additional state funds. The city’s infrastructure suffered millions of dollars in damage. Public buildings, streets and the city’s sewer and drainage systems either sustained severe damage or were destroyed. One year after the tornado, buildings throughout town remain boarded up, and the remnants of destroyed properties dot the landscape. The local high school remains closed because of lingering damage, leaving students to ride buses to nearby towns. Destroyed vehicles still hinder residents’ ability to navigate their daily lives. “People were displaced from their transportation networks,” said William Keith, who worked on disaster response for the American Red Cross. “A lot of people went to the grocery store with their neighbor next door, or they had a buddy a couple blocks away, and then went to work with them.” Ida Cartlidge, right, stands with her sons Jakavien, left, and Amarii on Nov. 29, 2023, in the middle of their two-bed motel room that serves as their temporary residence after a deadly tornado destroyed their home in March. (AP Photo/Rogelio V. Solis) After everyone was discharged from the hospital, the Cartlidge family moved into a two-bed motel room only minutes down the highway from where their mobile home used to be. The Rolling Fork Motel is a one-story brick building with green doors and a bright yellow sign that looms over Route 61, known as the “Blues Highway.” Music is integral to Rolling Fork’s history. Blues legend Muddy Waters is a native son. The highway running through town symbolizes the genre’s popular theme of packing up and leaving one’s troubles behind, according to the Mississippi Blues Commission. Convincing locals to stay is a harder proposition these days. More than 70% of Rolling Fork residents displaced by the tornado were renters. Housing assistance programs run by nonprofits stepped in after the tornado, but most are geared toward homeowners rather than renters or people who lived with family members, Thomas said. Queen’terica Jones looks at a vacant lot on May 19, 2023 in Rolling Fork, Miss., where she lived with her mother, Erica “Nikki” Moore, and three children in a mobile home before a devastating tornado stuck in March. (AP Photo/Rogelio V. Solis) Queen’terica Jones, 23, lived with her mother, Erica “Nikki” Moore, and three children in a mobile home just down the street from the Cartlidge place. On the evening of the tornado, she found her mother’s lifeless body facedown amid the rubble. Jones had no legal rights to her mother’s property and didn’t have the documents required by many programs that financed new mobile homes for displaced residents. Objects that had previously seemed ordinary — housing documents, family heirlooms, tax returns — suddenly took on life-altering significance for her. Queen’terica Jones cries as she looks at a vacant lot on May 19, 2023 in Rolling Fork, Miss., where she lived with her mother, Erica “Nikki” Moore, and three children in a mobile home before a devastating tornado stuck in March. (AP Photo/Rogelio V. Solis) “It’s a hard period. From losing your mom to having to start all over again,” Jones said. “Jesus, that’s a whole lot.” Without stable work and housing, Jones has moved between the homes of friends and family members since the storm. It’s a common story in Rolling Fork, where public services and steady work that had always been elusive grew even more scarce in the storm’s aftermath. “Towns such as Rolling Fork generally have a smaller tax base with fewer economic resources to respond and recover from such disasters,” said Ryan Thomson, a professor of rural sociology at Auburn University. “Federal and state aid oftentimes lag behind local needs.” Ida Cartlidge, second from left, holds her youngest son Nolan while sitting with sons Amarii and Jakavien, right, on Nov. 29, 2023, in the middle of their two-bed motel room that serves as their temporary residence after a deadly tornado destroyed their home in March. (AP Photo/Rogelio V. Solis) Nonprofits, the state and the federal government rallied to help. But if the assistance doesn’t address some of the town’s lingering needs, officials fear an exodus is likely. “We are striving for a better Rolling Fork,” Walker wrote in his letter to Thomas. “And the chance to keep our people in this town.” Ida Cartlidge, center, and her sons Jakavien, left, Amarii, right, and Nolan are reflected in a mirror above their makeshift pantry of dry goods on Nov. 29, 2023, in the middle of their two-bed motel room that serves as their temporary residence after a deadly tornado destroyed their home in March. (AP Photo/Rogelio V. Solis) The Red Cross paid for extended stays at the Rolling Fork Motel for displaced residents, and for months, volunteers clad in red vests doled out groceries and supplies to weary residents. They stacked whatever the storm hadn’t carried off in corners and made room for donated packages of Cup Noodles and Capri Sun. For nearly a full year in that cramped motel room, the Cartlidge family lived with only basic necessities. But they had owned their destroyed mobile home, making them eligible for a new one through a nonprofit called Samaritan’s Purse. In February, they moved into a renovated trailer near downtown, with a “Home Sweet Home” mat greeting them at the door. They cried in each other’s arms upon seeing the property. Ida Cartlidge stands in front of a bedroom in a renovated three-bedroom trailer on March 22, 2024, near downtown Rolling Fork, Miss. (AP Photo/Rogelio V. Solis) That night, Ida served the children popcorn and soda on a platter and they all watched horror films — none as scary as the nightmare they’d lived through together a year earlier. Then they went to bed, each in their own room. A painted bible verse is seen inside of what is left of a building on March 22, 2024, that was destroyed by a deadly tornado in March 2023 in Rolling Fork, Miss. (AP Photo/Rogelio V. Solis) ___ Michael Goldberg is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow him at @mikergoldberg.
Insider Q&A: Nellie Borrero recounts 4 decades of addressing racism and bringing change to Accenture 2024-04-08 12:57:06+00:00 - NEW YORK (AP) — It didn’t take long for Nellie Borrero to encounter racism in 1986 when she joined a major consulting firm that was the predecessor to Accenture. A secretary handed her a subway token and told her she was the “token hire.” At her first Christmas party, the partner who hired her gave her brightly wrapped gift that turned out to be roach spray and told her everyone knew Puerto Ricans had roaches in their homes. The next Monday, Borrero confronted the partner to explain she felt humiliated and felt she didn’t belong at the company. The partner, Borrero says, expressed remorse and promised to help her change the company’s culture if she stayed. Borrero, now Accenture’s senior strategic adviser for global inclusion and diversity, shared these stories in “Unwavering: Rejecting Bias, Igniting Change, Celebrating Inclusion,” a new book detailing her nearly 40-year effort to build DEI (diversity, equity, and inclusion) practices at the company. In 2020, Accenture set goals surrounding racial and gender representation in its U.S. workforce, including increasing the number of Hispanic U.S. employees from 9.5% to 13% by 2025 and the number of Hispanic U.S. managing directors from 3.5% to 4.7%. In an interview with The Associated Press, Borrero discusses her book and why Accenture is sticking with its goals despite a legal battle against DEI policies by conservative activists and elected officials. The interview has been edited for length and clarity. Q: The story about the gift was shocking to me. Did he really not realize it was offensive? A. He thought he created an environment where everybody laughed and had a great joke and a great laugh. For me it was demeaning and it was hurtful. It minimized me. It embarrassed me, but he did not take the time to even think about that as a possibility. But what I loved about that moment is that it became the moment when I knew I had to change the culture. Q: You have other anecdotes where you share your own mistakes dealing with communities you are not as familiar with. Can you tell me about creating room for allowing mistakes? A. We have a lot of people that want to be allies but are awkward allies. They don’t want to hurt, they don’t want to offend. I’ve been there. And what I’ve understood is the magic of that word grace. We have to give each other grace in this process. We can choose to educate the person that committed the offense or whatever you want to call it. They can choose to receive it. So I would stay let’s start with a place of grace. Then if you do take the time to educate that person and they continue to behave a certain way, then grace is gone, right? Q: How do you see this moment in the DEI space? A. Some of the inroads that myself and others that are diversity practitioners have fought for and positioned for, we are running the risk of going backwards. All this time it had been about going forward. That’s what concerns me. However, that concern gets diminished when I remind myself that for the organizations that understand the business imperative, the business value of diversity from the perspective of clients and customers, they are going to continue to support diversity. Q: Accenture has goals on representation, which is one of the things groups have challenged as maybe constituting illegal hiring. A. We set out those goals because we wanted to hold ourselves accountable. We still have those goals in place for 2025 and we are one year from meeting those goals and I’m super, super excited about the representation we have across the board when it comes to diversity. We are staying steadfast on those goals. Q: The number of Latinos and Black people in managerial roles at Accenture is still small. Do you see the progress as slow or just right? A. I cannot tell you the level of effort it has taken to even get there. So we are going to continue to put intensity into this. When I think about the level of intention, strategic approach, high touch — all these things that need to happen — this is heavy, heavy lifting. I am pleased to where we are but I’m not satisfied. ________ The Associated Press’ women in the workforce and state government coverage receives financial support from Pivotal Ventures. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.
3 Energy Stocks to Consider as the Sector Breaks Out 2024-04-08 12:55:00+00:00 - Key Points WTI Crude Oil Futures has surged from $70 to nearly $90 a barrel, marking a 23% year-to-date increase and promising gains for oil companies. The Energy Sector ETF (XLE) has outpaced the market, rising close to 17% year-to-date, presenting an opportunity amidst rising oil prices and geopolitical tensions. Both OXY and XOM have recently broken out, with OXY emphasizing a commitment to a carbon-free future and XOM boasting a significant market capitalization and dividend yield of 3.13%. 5 stocks we like better than Exxon Mobil The energy market has been ablaze with activity this year, particularly in crude oil. Witnessing a remarkable ascent, the WTI crude oil futures, America's primary oil price benchmark, have soared from almost $70 a barrel at the onset of the year to nearly $90 a barrel in recent times, up 23% year-to-date. Such a surge bodes well for oil companies, poised to generate substantial free cash flow throughout the year. Notably, the Energy Select Sector SPDR Fund NYSE: XLE, a renowned energy sector ETF, has significantly outpaced the broader market, boasting an impressive uptick of nearly 17% year-to-date. In recent weeks, this outperformance has intensified as the energy sector gains favor, propelled by various factors, including a retreat in high-growth tech stocks, escalating oil prices, and persisting geopolitical tensions, particularly in the Middle East, with no immediate resolution in sight. Get Exxon Mobil alerts: Sign Up The energy sector's current vigor and momentum present an opportune moment to delve deeper into its dynamics. Capital appears to flow swiftly into this sector, so let’s explore three stocks worthy of consideration as the sector surges to unprecedented heights. 3 Energy Stocks to Consider The Energy Sector ETF The Energy Select Sector SPDR Fund NYSE: XLE seeks to provide investment results that generally correspond to the price and yield performance of the Energy Select Sector Index (the Index). The Index includes companies from the following industries: oil, gas, consumable fuels, and energy equipment and services. The popular sector ETF is up close to 17% year-to-date and recently broke out of a significant, multi-year consolidation near $95. The move above multi-year resistance significantly shifted the sector's momentum and trajectory. The XLE's holdings have an aggregate rating of moderate buy based on 335 analyst ratings covering 99.7% of the portfolio. The consensus aggregate price target for the ETF is $104.46, forecasting a 6.5% upside. Several heavyweights in the sector are among the ETF’s top five holdings, namely Exxon Mobil, Chevron, Schlumberger, EOG Resources, and ConocoPhillips. Occidental Petroleum Co. Occidental Petroleum NYSE: OXY is a global oil and gas company operating in the US, the Middle East, Africa, and Columbia. It focuses on exploration, production, and midstream operations. Notably, in 2021, it committed to a carbon-free future with ambitious emission reduction targets recognized by the Transition Pathway Initiative. Following its acquisition of Anadarko Petroleum in 2019, it became the US's sixth-largest oil and gas producer by market cap. Berkshire Hathaway emerged as its largest shareholder in 2022, holding over 26% of shares with regulatory approval for further acquisition. Occidental shares have enjoyed a stellar year thus far, up close to 16% and outperforming the broader market. From a technical analysis perspective, the stock has been consolidating for multiple years, with $77 as the critical resistance. Should the stock continue to climb higher and approach this all-important level, a breakout might signal a significant, higher timeframe uptrend is underway. Exxon Mobil Co. Exxon Mobil NYSE: XOM is the XLE ETF’s largest holding, weighing 21.11%, and is the world's second-largest oil refiner regarding its operations. The company boasts a whopping market capitalization of almost half a trillion, has a P/E of 13.65, and offers a dividend yield of 3.13%. Like the overall sector, XOM recently broke above a major level of resistance, signaling robust momentum to the upside and overall strength in the sector. Now, trading above the previous resistance of $120, the stock is outperforming the market and its sector, up over 21% year-to-date. If the stock can successfully consolidate above previous resistance, that might be the final entry opportunity before it continues its rapid ascent. Based on eighteen analyst ratings, the stock has a consensus rating of moderate buy and price target, forecasting almost 7% upside. Most recently, on April 5, analysts at Truist Financial boosted its target for XOM from $140 to $146, forecasting an impressive 20% upside at the time of the report. 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
Cannabis: One Stock to Play the Movement 2024-04-08 12:38:00+00:00 - Key Points The Amplify Alternative Harvest ETF has 30 holdings in cannabis stocks, providing investors with diversification within the industry. Cannabis stocks have been making headlines due to the April 1, 2024, legalization of cannabis in Germany. The U.S. Department of Health and Human Services (HHS) has recommended the DEA consider reclassifying cannabis to a Schedule III drug down from a Schedule I drug, which currently carries a maximum prison sentence of 20 years to life. 5 stocks we like better than Amplify Alternative Harvest ETF Cannabis legalization is making headlines again. On April 1, 2024, Germany is the latest nation to legalize or, to be more specific, decriminalize cannabis for recreational and medical use. Canada has been one of the first nations to decriminalize cannabis widely and is one of the largest markets for legal marijuana. The United States Health and Human Services (HHS) department has recommended that the Drug Enforcement Agency (DEA) be reclassified from its current Schedule I drug status. Cannabis stocks fall into the consumer discretionary sector. Get MJ alerts: Sign Up The DEA Claims to Hold All the Cards. All publicly traded cannabis producers and product companies are waiting with bated breath for the United States to legalize cannabis federally. The DEA emphatically states that they are the ones with final authority on the matter to schedule, reschedule or even de-schedule the drug. Reclassification in Not Legalization While HHS, along with 31 lawmakers, has recommended to the DEA to reclassify cannabis from a Schedule I to a Schedule III drug, it doesn't make it completely legal. To review, Schedule I drugs are classified as those with a high potential for abuse with no currently accepted medical use, which include heroin, LSD, MDMA and cannabis. Maximum penalties for distribution range from 20 years to life in prison. Schedule II drugs are those with a high potential for above with some currently accepted medical use, including Oxycodone, Vicodin, fentanyl, cocaine, Adderall and methamphetamine. Maximum penalties range from 5 to 40 years in prison. Schedule III drugs are those with moderate to low potential for abuse and some currently accepted medical use. These drugs include codeine, ketamine, testosterone and anabolic steroids. Maximum penalties can range from 10 to 20 years in prison. While these are federal classifications, states may have more lenient or stricter penalties. Based on federal classification, Schedule III drugs can still carry prison sentences based on the trafficking intent and quantity of possession, which underscores the fact that reclassification is most definitely not legalization. The Current and Changing State of Legalization As of April 7, 2024, an estimated 24 states and the District of Columbia have legalized recreational cannabis usage. The latest states to legalize recreational marijuana are Virginia, Ohio and Minnesota. Commercial sales for Washington and Virginia have not been rolled out yet. Worldwide, recreational cannabis use has been decriminalized in Thailand, Mexico, South Africa, Malta, Luxembourg and parts of Australia. The One ETF to Play the Cannabis Movement Cannabis investors haven't been the most successful, as most of these stocks collapsed by 2023. While you could invest in a few cannabis names, which could have been very unfortunate in 2021, you can spread your risk in 30 names through the Amplify Alternative Harvest ETF NYSEARCA: MJ. Top 4 Holdings The MJ ETF has 30 holdings in the cannabis sector, ranging from producers and product makers to REITs involved in the industry. Aside from a 41.58% weighting of its MJUS ETF, its largest company holding is Tilray Brands Inc. NASDAQ: TLRY, with 10.64 million shares representing a 9.43% weighting. Canopy Growth Co. NASDAQ: CGC is its second largest holding with 2.5 million shares, representing an 8.75% weighting. With 150 retail locations in Canada, SNDL Inc. NASDAQ: SNDL is the third largest, holding 9.1 million shares or 6.85% weighting. Rounding out the top 4 companies is Cronos Group Inc. NASDAQ: CRON with 6.6 million shares or a 6.04% weighting. Having 30 different holdings prevents being overly concentrated in a single name and not having to select which stocks to hold. Daily Cup Pattern The daily candlestick chart on MJ illustrates a cup pattern. The cup lip line formed at $4.52 on September 15, 2023, as shares fell to a low of $2.56 on October 30, 2023. MJ staged a rally on the daily market structure low (MSL) trigger breakout through $2.79 as it rose to a peak of $3.92 on February 5, 2024, before falling back to $3.04. MJ staged a sharp rally into the April 1, 2024, legalization of cannabis in Germany to retest the cup lip line. The daily relative strength index (RSI) is chopping just under the 60-band. Pullback support levels are at $3.92, $2.41, $3.04 and $2.56. Before you consider Amplify Alternative Harvest ETF, 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 Amplify Alternative Harvest ETF wasn't on the list. While Amplify Alternative Harvest ETF currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Paying Off People’s Medical Debt Has Little Impact on Their Lives, Study Finds 2024-04-08 12:00:07+00:00 - Over the past decade, R.I.P. Medical Debt has grown from a tiny nonprofit group that received less than $3,000 in donations to a multimillion-dollar force in health care philanthropy. It has done so with a unique and simple strategy to tackling the enormous amounts that Americans owe hospitals: buying up old bills that would otherwise be sold to collection agencies and wiping out the debt. Since 2014, R.I.P. Medical Debt estimates that it has eliminated more than $11 billion of debt with the help of major donations from philanthropists and even city governments. In January, New York City’s mayor, Eric Adams, announced plans to give the organization $18 million. But a study published by a group of economists on Monday calls into question the premise of the high-profile charity. After following 213,000 people who were in debt and randomly selecting some to work with the nonprofit group, the researchers found that debt relief did not improve the mental health or the credit scores of debtors, on average. And those whose bills had been paid were just as likely to forgo medical care as those whose bills were left unpaid.
Brazil Supreme Court investigating Elon Musk over obstruction, disinformation on X 2024-04-08 11:30:00+00:00 - A crusading Brazilian Supreme Court justice included Elon Musk as a target in an ongoing investigation over the dissemination of fake news and opened a separate investigation late Sunday into the executive for alleged obstruction. In his decision, Justice Alexandre de Moraes noted that Musk on Saturday began waging a public "disinformation campaign" regarding the top court's actions, and that Musk continued the following day — most notably with comments that his social media company X would cease to comply with the court's orders to block certain accounts. "The flagrant conduct of obstruction of Brazilian justice, incitement of crime, the public threat of disobedience of court orders and future lack of cooperation from the platform are facts that disrespect the sovereignty of Brazil," de Moraes wrote. Musk will be investigated for alleged intentional criminal instrumentalization of X as part of an investigation into a network of people known as digital militias who allegedly spread defamatory fake news and threats against Supreme Court justices, according to the text of the decision. The new investigation will look into whether Musk engaged in obstruction, criminal organization and incitement. Elon Musk attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition centre on June 16, 2023 in Paris, France. Getty Musk has not commented on X about the latest development as of late Sunday. Brazil's political right has long characterized de Moraes as overstepping his bounds to clamp down on free speech and engage in political persecution. In the digital militias investigation, lawmakers from former President Jair Bolsonaro's circle have been imprisoned and his supporters' homes raided. Bolsonaro himself became a target of the investigation in 2021. De Moraes' defenders have said his decisions, although extraordinary, are legally sound and necessary to purge social media of fake news as well as extinguish threats to Brazilian democracy - notoriously underscored by the Jan. 8, 2023, uprising in Brazil's capital that resembled the Jan. 6, 2021 insurrection in the U.S. Capitol. On Saturday, Musk — a self-declared free speech absolutist — wrote on X that the platform would lift all restrictions on blocked accounts and predicted that the move was likely to dry up revenue in Brazil and force the company to shutter its local office. "But principles matter more than profit," he wrote. He later instructed users in Brazil to download a VPN to retain access if X was shut down and wrote that X would publish all of de Moraes' demands, claiming they violate Brazilian law. "These are the most draconian demands of any country on Earth!" he later wrote. Musk had not published de Moraes' demands as of late Sunday and prominent blocked accounts remained so, indicating X had yet to act based on Musk's previous pledges. Moraes' decision warned against doing so, saying each blocked account that X eventually reactivates will entail a fine of 100,000 reais ($20,000) per day, and that those responsible will be held legally to account for disobeying a court order. Brazil's attorney general wrote Saturday night that it was urgent for Brazil to regulate social media platforms. "We cannot live in a society in which billionaires domiciled abroad have control of social networks and put themselves in a position to violate the rule of law, failing to comply with court orders and threatening our authorities. Social peace is non-negotiable," Jorge Messias wrote on X. Brazil's constitution was drafted after the 1964-1985 military dictatorship and contains a long list of aspirational goals and prohibitions against specific crimes such as racism and, more recently, homophobia. But freedom of speech is not absolute.
3 Consumer Staples Stocks Setting up for a Breakout 2024-04-08 11:26:00+00:00 - Key Points Uncertainty with potential Fed interest rate cuts creates an opportunity for consumer staples stocks to see a leg up. Three names stand out as non-cyclical products with high Wall Street regard. EPS projections, price targets, and price action all boost the potential future of these stocks. 5 stocks we like better than Citigroup The swing is coming in this next market cycle. While markets may have priced in potential interest rate cuts from the Federal Reserve (the Fed), some stocks have yet to reach their full potential. Technology stocks took the lion’s share of bullish momentum, with names like Nvidia Co. NASDAQ: NVDA making all-time highs. Still, some in the consumer staples sector offer a much better risk-to-reward proposition. Get Citigroup alerts: Sign Up Businesses in the consumer discretionary sector would be the first to make a move on new interest rate pivots. However, traders keep pushing their expectations for these cuts further. Once expecting cuts in March 2024, projections in the FedWatch tool offered by the CME Group Inc. NASDAQ: CME show these tendencies going as far as September 2024. As long as the timing – and magnitude – of these cuts remain speculative, stocks like Freshpet Inc. NASDAQ: FRPT, Celsius Holdings Inc. NASDAQ: CELH, and even Tyson Foods Inc. NYSE: TSN could be the ones to offer investors some stability. As their products often stay in demand through the business cycle, Wall Street analysts spotted an opportunity to cushion any market uncertainty. Freshpet’s Hidden Moat Like its competitor, Chewy Inc. NYSE: CHWY, Freshpet is backed by the naturally non-cyclical nature of pet needs. Whether the U.S. economy is booming or busting, pet owners will likely still find ways to budget for their pets' needs monthly. Combining technology on top of a wholesale/retail model, Freshpet is giving investors an opening to squeeze potential returns in the coming months. This is one reason analysts at Truist Financial Co. NYSE: TFC boosted their price targets to $135 a share. Freshpet stock would have to rally by 18% to prove these projections right. More than that, overall earnings per share (EPS) expectations are set to a 560% growth rate in the next 12 months. Willing to pay for a good stock, markets value Freshpet at a forward price-to-earnings (forward P/E) ratio of 176.8x. This valuation places Freshpet at a 689% premium to the staples sector, as its average valuation is 22.4x forward P/E today. The saying “It must be expensive for a reason” applies here, as the Vanguard Group was also willing to buy up to 0.7% more stock in its position, an approximate $2.8 million addition. Wall Street’s Fashion For Celsius Drinks Speaking of institutional buying, how is a $19.2 million investment by The Goldman Sachs Group Inc. NYSE: GS as it boosted exposure by 80.8% in the past quarter? Vanguard also saw fit to increase its own investment by 183%, an aggressive fashion by Wall Street. However, The PNC Financial Services Group Inc. NYSE: PNC took the podium by boosting its position in the stock by 202% in the past quarter. In percentage terms, these allocation moves signify a newfound confidence in these institutions in the stock's future. Not known for its growth, the staples industry is projected to see an 8% EPS increase for the year. In comparison, Celsius analysts project up to 40%. No wonder those at the Maxim Group felt bold enough to boost price targets to $110 a share, calling for a 29% upside from today. Celsius’ 55x forward P/E still gives it a 145% premium to the staples sector. This is a sign that markets are accepting analyst projections and willing to pay for this potential growth. Tyson’s Dip Opportunity Chicken costs surged throughout 2023 as feed and other factors soared, and companies like Tyson saw no other path but to report tighter gross margins in their financial statements. However, easing inflation pressures has helped margins and outlooks for the chicken business. With soybean feed and other components declining in cost, margins and outlooks are now improving, according to Tyson’s management. The stock trades at 93% of its 52-week high, a sign of bullish momentum; however, it is nothing close to its 2022 high price of $100.7 a share. Knowing that Tyson could have some value to be squeezed, Fisher Asset Management bought up to $682,000 worth of Tyson stock. Likewise, analysts at Citigroup Inc. NYSE: C boosted their price targets on Tyson to $62 a share, a valuation 5% higher for this $21 billion giant. Analysts think Tyson’s EPS could grow by 57% this year, pushing much higher than its historical expectations. Another non-cyclical stock in this list going for above-average growth for the coming Fed pivot. Before you consider Citigroup, 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 Citigroup wasn't on the list. While Citigroup currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Cities in the eclipse’s path are getting an economic ‘shot in the arm.’ 2024-04-08 10:20:15+00:00 - A vast swath of North America will soon be plunged into darkness. Though momentary, the total solar eclipse on Monday has already proved lucrative. Across the United States, Mexico and Canada, towns and villages have been planning what could be the biggest tourist attraction for many small cities. Larger areas that are more accustomed to hosting events are nonetheless expecting a significant windfall. “We don’t usually have this kind of tourism — it’s not common,” said Edgar Augusto González-Zatarain, the mayor of Mazatlán, Mexico. “Nature is giving us this opportunity, and we have to take advantage of it.” Various indicators suggest the eclipse will bolster the economies in the path of totality, a roughly 110-mile-wide belt that will stretch from Mazatlán to Montreal. Hertz said car reservations had jumped 3,000 percent from a year ago. Airbnb has reported a 1,000 percent increase in searches for listings. In Oklahoma, the Choctaw Nation had seen a 200 percent increase as of mid-March in reservations at its resorts and casinos.
The 2024 solar eclipse: your chance to use your phone and be a scientist 2024-04-08 10:00:40+00:00 - On Monday, when the moon passes between the sun and the Earth and causes a total solar eclipse, more than 30 million people across the United States will be under the moon’s shadow for the otherworldly experience. But the cosmic spectacle won’t just be an awe-inspiring sight; it will also be an opportunity for members of the public to get involved in cutting-edge science. From using a smartphone app to help create a movie of the eclipse to gathering information about the shape of the sun and cloud coverage on Earth, ordinary people with no experience in astronomy can become a scientist for a day. Despite our sun’s constant presence, remarkably, its precise shape is not known. Despite our sun’s constant presence, remarkably, its precise shape is not known. A free phone app called SunSketcher will let volunteer observers along the eclipse’s path of totality — the thin region where the sun is completely blocked out — capture their views of the rare astronomical event. Researchers hope studying the images taken with these ubiquitous devices will reveal the last drops of sunlight, also known as Baily’s beads, that pass through the valleys on the moon’s surface just before and after totality. “You only need one piece of equipment, and that’s your phone,” Gordon Emslie, a professor of physics and astronomy at Western Kentucky University and leader of the SunSketcher project, told me. “Because we know the exact shape of the moon, the timing of when those beads flash on and off gives us very precise information on the shape of the sun in the background,” Emslie added. He encourages project participants to start the app and prop up their phones facing the sun at least five minutes before the moon masks the Sun so as not to interrupt their overall eclipse viewing experience. The app will handle the rest. Patricia Reiff, an astronomy professor at Rice University, is the southwest regional director for Citizen CATE, a participatory science project that will have volunteers operate a series of telescopes with polarized cameras stationed in 35 observing locations along the eclipse’s path. The goal: to document the appearance and light behavior of the corona — a wispy halo of plasma around our star that’s hard to study from Earth. The project is a rerun of one that occurred during 2017’s total solar eclipse, shortly before the solar minimum, that is, when sun activity was at its lowest. This time around, sun activity will be approaching a major peak, giving researchers insights into how the corona varies across the solar activity cycle. Many participants from 2017 will also be part of this year’s observations. “We are working with amateurs, high schoolers and especially people of color,” Reiff said. “Trying to get people who never really considered a science career before excited about science is a big part of the project.” Another photo-taking project, the 2024 Eclipse Megamovie, involves more high-tech equipment. Volunteers will use a DSLR camera and an equatorial mount (to compensate for Earth’s rotation) in order to crowdsource more than 1,000 high-quality images of the eclipse, which will then be stitched into a movie. In particular, scientists in this project want to gain insights into solar jets, bubbles of plasma that flow out of the sun. “One of the things we’re interested in is how things propagate away from the sun and into the solar system, interacting with nearby planets like Earth,” Laura Peticolas, associate director of the education and public outreach group at Sonoma State University and leader of the Eclipse Megamovie project, told me. Eclipse viewers both inside and outside the path of totality can also help scientists track environmental changes during Monday’s eclipse. Eclipse viewers both inside and outside the path of totality can also help scientists track environmental changes during Monday’s eclipse. Using an eclipse tool in the GLOBE Observer app and a thermometer, participants can record shifts in air temperature and clouds in order to understand how eclipses affect weather patterns. “Because the eclipse changes the solar energy right in the location where you’re observing, it’s going to potentially affect cloud cover and temperature,” Holli Riebeek Kohl, GLOBE Observer lead at NASA’s Goddard Space Flight Center, told me. Volunteers for these sorts of community science projects are often excited to be part of something bigger, Riebeek Kohl added: “A lot of people have indicated they wanted to contribute to science so that their experience is more meaningful.” As Reiff said about the oncoming eclipse, “It’s the most adrenaline you can have without being actually in physical danger.”
Two years after its historic win, a divided Amazon Labor Union lurches toward a leadership election 2024-04-08 09:26:14+00:00 - Two years after clinching a historic victory at a warehouse in New York City, the first labor union for Amazon workers in the United States is divided, running out of money and fighting over an election that could determine who will lead the group in the near future. Despite campaigns at several facilities in the past few years, the warehouse on Staten Island still is the only site in the U.S. where the retail giant’s workers have voted in favor of union representation. Cracks emerged within the Amazon Labor Union ranks after it lost the votes at a second Staten Island warehouse and at one in upstate New York, spurring disagreements about the group’s organizing strategy. Some felt Chris Smalls, the union’s president, spent too much time traveling and giving speeches instead of focusing on Staten Island, where the union still does not have a contract with Amazon. Prominent members resigned quietly or left to form a dissident labor group, which sued the union in federal court last summer to force an election for new leadership. Although many of the union’s problems are internal, it also continues to face roadblocks from Amazon, which has resisted efforts to come to the bargaining table despite pressure from federal labor regulators to do so. The company, for its part, has accused the National Labor Relations Board and the ALU of improperly influencing the outcome of the successful unionization vote. Amazon also claims the results - 2,654 in favor and 2,131 against - do not represent what the majority of employees want. About 8,300 people worked at the JFK8 Fulfillment Center at the time of the April 2022 vote. “When the law allows management to drag out negotiations over years, and to use legal arguments to delay the progress that the workers have begun, it’s just an enormous hurdle,” said Benjamin Sachs, a labor law professor at Harvard University. In January, months after the splinter group called A.L.U. Democratic Reform Caucus filed its lawsuit, the union agreed to a court-brokered plan to allow rank-and-file members to vote on whether to hold an election for a slate of new officers. For five days that ended in early March, tables with ballots were set up outside the doors of the massive Staten Island warehouse. Smalls and other union leaders campaigned against the election, but the vote didn’t go their way. In court documents, Arthur Schwartz, an attorney who represents the dissident caucus, said that of the roughly 350 union members who voted, 60% favored having an officer election in June or July. The referendum, which had a low turnout rate, didn’t settle the legal back-and-forth and internal power plays. Last week, Jeanne Mirer, an attorney for the union, argued in a legal filing that the federal court in New York should reopen the court-brokered plan. She called it a “flawed” agreement that violated the union’s constitution. According to Mirer, the current ALU governing document requires members to pass an amendment or arrange a constitutional convention if they want to hold an officer election before a collective bargaining agreement is negotiated with Amazon. The current leaders also say the union has run out of money, which makes it challenging for them to conduct an election. “It doesn’t matter who’s in the chair,” Mirer said during an interview. “Anybody who is a leader has to get Amazon to the table, and working against each other isn’t going to do it.” Schwartz, the attorney for the dissidents, called the union’s legal claims “totally baseless,” arguing that the constitution at issue was imposed by Smalls – without a vote - in late 2022. He noted that the neutral monitor overseeing the implementation of the court-brokered plan - labor attorney Richard Levy - has scheduled candidate nomination meetings for May, which could allow an internal election to be held as early as June 11. Smalls, a former Amazon worker who co-founded the union during the coronavirus pandemic, did not respond to multiple requests for an interview. Last year, he told the New York Times that he traveled to help raise money for the union. He also told financial news website Business Insider in December that he would not seek reelection as ALU president. Meanwhile, two other prominent organizers, Connor Spence, the union’s co-founder and former treasurer, and Michelle Valentin Nieves, a union leader who says she was pushed out of the group last year, have thrown their hats in the ring. Amazon fired Spence last year for violating a company policy that forbids workers from accessing company buildings or outdoor work areas when they’re off the clock, a policy critics say is designed to hinder organizing. He’s leading the A.L.U. Democratic Reform Caucus, while Valentin Nieves is running her own independent campaign. Valentin Nieves, who helps run the conveyor belts at the warehouse that unionized, said she felt frustrated during her time in the ALU by how much Smalls traveled, alleging that he missed weekly financial meetings for five months straight. She said she spoke with him about reducing his time away and encouraged him to periodically go to public bus stop near the warehouse, where many workers gathered after their shifts ended. But she said Smalls didn’t take her advice. “We need someone that is here. We need a contract and we need to organize the building,” Valentin Nieves said. “If we’re not able to do this, it’s going to have a domino effect, and a lot of Amazon workers are going to lose hope.” One Amazon worker on Staten Island, Keanu Rivera, 28, said he voted in favor of the union two years ago and sometimes reads the emails he receives from the labor group. Rivera said he used to see organizers talking to workers all the time before the representation vote two years ago. These days, he says there’s not much of that, a problem exacerbated by the Amazon policy restricting off-duty activity in work areas. “It’s all Amazon,” Rivera said. “Amazon got the money to stall them.” In addition to the vigorous legal pushback against the union’s win, the company has continued to spend millions on labor consultants who often try to persuade workers against joining a union. In 2023 alone, Amazon spent more than $3 million on such consultants for its delivery network, a target of the Teamsters union. Last month, the National Labor Relations Board filed a complaint against Amazon, alleging the company illegally attempted to disrupt organizing efforts by an independent union associated with the ALU at an air hub in Kentucky. Amazon spokesperson Mary Kate Paradis said that complaint was “without merit.” “We will continue to defend our position as the legal process continues,” Paradis said. Back in New York, organizers pushing for the internal election have their work cut out for them. They still need to secure a new mailing list for all the workers at the Staten Island warehouse, which has high turnover. Schwartz, the attorney for the dissidents, has asked the court to intervene so candidates whom the NLRB determined were illegally fired, such as Spence, can campaign in non-work areas of Amazon’s property. “The hope of the caucus,” he said, “is that we really use the election process to reenergize people in the plant.”
Why record-setting gold prices will fend off headwinds and see 30% more upside, according to famed economist David Rosenberg 2024-04-08 04:14:00+00:00 - REUTERS/Ilya Naymushin Gold poised to hit $3,000 per ounce as upcoming Fed rate cuts occur, top economist David Rosenberg says. That implies a potential 30% upside from current levels. He says the current rally is impressive because it defies typical macroeconomic challenges like a strong dollar and falling inflation expectations. While investors have been riding high on a record-breaking stock market, their favorite safe haven has also reached new peaks. Gold prices reached a historic $2,328.7 per ounce last week, and one economist says the momentum could carry the yellow metal to $3,000 before the next business cycle shift — a 30% increase from current levels. That's according to famed economist David Rosenberg, the president of Rosenberg Research. He said in a recent note that the latest gold run is "especially impressive," because it not only surpassed bitcoin and every major currency, but also overcame typical macro headwinds that often depress its value. "The rise in the gold price has come at a time of dollar strength, falling inflation expectations, and during which the Fed has moved market expectations toward a 'higher for longer' conviction. All those developments would typically hurt the gold price, but it's forged ahead regardless," his team wrote in the note. But before plunging into the hype around bullion's future, it's worth peeling back what's behind the recent surge. Strong demand Rosenberg and his team said the major driver of the latest highs wasn't so much on the supply side — which has been steady in recent years — but rather on the demand side, thanks to central banks' reembrace of it as a reserve asset. With the Chinese yuan losing its grip as the world's second reserve currency, and as nations like Japan, Russia, Turkey, and Poland fear overreliance on US dollars, many have turned to gold for security as they weathered idiosyncratic economic risks. "After divesting from gold in the early part of the century (physically backed reserves were oh so passé), central banks are once again building up their gold holdings, and at scale," he said, adding that central banks bought 361 tonnes of gold in the third quarter of 2023, a turnaround from -77 tonnes in 2022's same period. Story continues Global central bank gold reserves Source: World Gold Council, Rosenberg Research They also found gold shines more in emerging markets like India and China, while Western investors lag behind as high interest rates and booming stock prices dim lower-yielding gold's allure. Besides, rising industrial usage especially within the highly active electronics sector, is another price pusher. "The boom in circuitry manufacturing as producers work around the clock to meet the insatiable asset for AI-related models is certainly a tailwind for physical gold demand that will not disappear anytime soon," the note said. Fears over uncertainties Rosenberg also attributed gold's recent rally to global geopolitical risks and unpredictable macroeconomic outlook. "That the direction of travel for international relations toward greater militarization, confrontation, and polarization is difficult to argue against, and the risk hedging features of gold price have risen in importance as a result," he said. On the monetary side, he said — with the US debt-to-GDP ratio hitting 120%, and servicing costs escalating — investors are boosting gold holdings amid uncertainty over election outcomes and the looming possibility of a fiscal crisis. Next stop: $3,000 As gold's steadfast momentum persists, Rosenberg anticipates another 15% upside with a potential 30% in play as central banks begin to cut rates. He cites the precious metal's historically negative correlation with gold prices. The economist laid out two scenarios, both at which arrive at the conclusion that gold has further to rise: a "soft landing" and a typical bear market. In a "soft landing" scenario, assuming global real interest rates return to their pre-2000 averages—higher than the post-GFC stagnation era—this would lead the US dollar to drop by approximately 12% and push up gold prices by about 10%. But if a recession hits the economy—with global real interest rates reverting to their 2014-2024 average, stock markets stabilizing, and the dollar depreciating by around 8%—the upside for gold is more like 15%, putting it in the $2,500 range. Rosenberg Research's gold model forecasts a 10-15% upside when easing starts Source: Haver Analytics, Rosenberg Research "Putting those observations together with our modeling exercise tells us that downside risk to the gold price is limited, but there is a lot more room to rise. It's far more likely that gold reaches $3,000 per ounce than falls back to $1,500," he said, adding that rising geopolitical tensions would further drive gold prices higher. "The read-through for investors is straightforward: make sure you have gold in your portfolio, and overweight it. The downside risks are well contained (though a very near-term correction is not impossible and should be looked through), but the upside is tantalizing," Rosenberg concluded. Read the original article on Business Insider