Latest News
See the latest news and get GPT analysis of articles
Airport executive dies days after a shootout with federal agents shocked neighbors 2024-03-21 18:37:00+00:00 - LITTLE ROCK, Ark. — An airport executive who was shot in the head this week during a shootout with federal agents has died, a spokesperson for the airport said Thursday. “With a heavy heart, we announce the passing of our executive director Bryan Malinowski,” the spokesperson for the Bill and Hillary Clinton National Airport said in a statement, adding that Malinowski was a 16-year employee and the airport experienced significant growth and success under his leadership. “We extend our heartfelt condolences to Bryan’s wife, Maer, loved ones and friends,” the statement said. Malinowski’s wife declined a request for an interview when reached by phone Thursday before news of his death was announced. Malinowski, 53, was wounded when agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives tried to serve a search warrant at his home just after 6 a.m. Tuesday. The ATF said one of its agents sustained a “non-life-threatening” wound in the shootout. Malinowski was shot more than once, Arkansas State Police have said. Malinowski’s brother, Matthew Malinowski, 55, previously told NBC News that his sibling was shot in the head and was not likely to survive. Earlier Thursday, residents here said they were still struggling to make sense of the bloodshed, recalling Malinowski as a near-perfect neighbor. “He’s been nothing but an outstanding neighbor — helpful and very giving,” said Sarah Aguirre, 30. Aguirre spoke Thursday from her front door on a cul-de-sac on Durance Court in the upper-middle-class neighborhood. Bryan Malinowski. clintonairport.com Shirley Wofford, 75, said that Malinowski was known to do handiwork around the neighborhood and that his wife often chatted with people as she walked the couple’s two pugs every day. The couple would also bake cookies and share them with neighbors, Wofford said. She fondly recalled Thursday that after her husband died in 2014, Malinowski would come over unexpectedly and change the lightbulbs outside her home. “We are all hurting badly about what happened,” Wofford said. “We don’t know what in the world happened. We are all dumbfounded.” She said that the Malinowskis have had her over for Thanksgiving dinner and that neighbors would often gather at their home during the holidays. Susan Lynn Duston, who lives next door, said the Malinowskis became neighbors 15 years ago and since then their families have shared dinners and one year watched the Super Bowl together. “He’s a good friend," she said Wednesday, describing Malinowski as a “professional.” Law enforcement officials outside a home in west Little Rock, Ark., on Tuesday. KARK Wofford, who has known Malinowski for more than a decade, said she had never seen anything at his home to suggest he was involved in anything illegal. She also said she never saw anyone strange there. “He was not a hardened criminal — nothing that we know about,” she said. “I just don’t think whatever happened to him should have cost him his injuries. It shouldn’t have happened at all.” The authorities have not said why they were serving a search warrant at the Malinowski home. A spokesperson for the ATF said Wednesday the agency could not release the warrant, saying it is part of an active investigation. Aguirre said she’s curious to learn why federal authorities were at Malinowski's home. She said she saw law enforcement packing up crates and a garbage bin of guns into a truck Tuesday morning. Wofford said she saw about 15 to 20 ATF personnel in marked windbreakers at the Malinowski home. Aguirre said she’s “tore up” over the shooting. “He was a good person. Everything that happened, I’m still in shock,” she said. “I don’t know why it went to that level.” Wofford said she was overcome with sadness. “I need to get out of this house and off of this street,” she said. “You open your shutters and you look over there and you know something happened to them. He was not a bad person.”
Millions of vapes could be dumped before UK ban as retailers ‘fail to recycle’ 2024-03-21 18:30:00+00:00 - A quarter of a billion disposable vapes could be dumped before a ban comes in next year as most retailers are not fulfilling their legal duty to help consumers recycle them, according to new research. The not-for-profit organisation Material Focus, which conducted the research, found that more than nine out of 10 vape producers and retailers seemed not to provide or pay for the return and recycling of single-use e-cigarettes. High street brands and convenience stores were among the worst offenders, providing few or no recycling drop-off points, according to Material Focus. The not-for-profit went into more than 700 retail stores looking for drop-off-points or asking if they could get their vape recycled, after seeing the products advertised for sale. Even though some say that they run takeback schemes shoppers were told that they could not take the products when they asked. Material Focus said single-use e-cigarettes were one of the “most environmentally wasteful, damaging and dangerous consumer products ever made”. They estimate that more than 250m vapes will be thrown away before the forthcoming ban on single-use vapes, due to be implemented in 2025. Scott Butler, executive director of Material Focus, said: “The environmental responsibilities of vape producers and retailers are very clear. Any company producing significant quantities of electrical items is required to register, report their sales and finance the cost of their product being recycled. Retailers are also responsible for ensuring that it’s easy for their customers to recycle these products by providing recycling drop-off points in their stores. “It is shocking that there has been so little progress since last year. As sales and profits have boomed, the environmental impacts and costs of collecting and recycling waste vapes have been disregarded.” Sales of disposable single-use vapes in the UK are now at least 360m per year – the equivalent of providing lithium for the batteries of more than 6,700 electric vehicles. The cost of recycling all the single-use vapes bought in the UK could be up to £200m per annum. 0:46 'Children shouldn't be vaping': Rishi Sunak explains UK disposable vapes ban – video Disposable single-use vapes have a wide range of environmental impacts. They also contain some of the most precious materials on our planet, such as lithium and copper, which are lost for ever when thrown away. Each single-use device contains on average 0.15g of lithium and according to GAP Group, an electricals recycling company, on average 50cm or 1.9g of copper cable. Vapes, as they contain lithium, also present a fire risk if not disposed of correctly – more than 700 fires are caused by the incorrect disposal of electricals containing hidden batteries, including vapes. Material Focus conducted research among 764 retailers in 13 cities across the UK who sell vapes. They say that, despite legal obligations being in place since 2021, only 86 stores (11%) provided recycling points. The analysis, which examined the company records of more than 165 of the most significant vape and vape juice producers in the UK, identified that only 15 had registered to comply with environmental regulations for producer responsibility for waste electricals, portable batteries and packaging. However, all of the companies identified in Material Focus’s analysis had become members of a vape industry trade association such as the UKVIA or IBVTA and also registered their products with the Medicines and Healthcare Products Regulatory Agency. The companies identified have not registered with UK environment agencies for various regulations that mandate they contribute to the costs of recycling of the products and packaging they sell when they reach their end of life. Companies must register as a producer each year depending on how many electricals they sell. If they sell less than 5 tonnes a year, they must sign up with their environmental regulator as a small producer; more than that and they must pay to join a producer compliance scheme. At the end of 2022, Material Focus produced a briefing paper that set out the environmental responsibilities of vape producers and retailers, which has been widely shared across the industry.
U.S. hits Apple with landmark antitrust suit, accusing tech giant of stifling competition 2024-03-21 17:31:00+00:00 - Washington — Apple Inc., one of the world's most valuable and influential companies, illegally engaged in anti-competitive behavior in an effort to build a "moat around its smartphone monopoly" and maximize its profits at the expense of consumers, the Justice Department alleged in a blockbuster antitrust lawsuit filed Thursday. In a complaint filed in federal district court in New Jersey, the Justice Department accused the company of using its app development rules, iPhone features and hardware that customers use every day — including iMessage, Apple Wallet and smartwatches — to thwart competition and expand its business by charging higher prices. Fifteen states and the District of Columbia joined the Justice Department as plaintiffs in the suit. "Apple has maintained monopoly power in the smartphone market not simply by staying ahead of the competition on the merits, but by violating federal antitrust law," Attorney General Merrick Garland said in remarks at Justice Department headquarters. "Consumers should not have to pay higher prices because companies break the law." The Apple antitrust suit Attorney General Merrick Garland announces an antitrust suit against Apple at the Justice Department in Washington, D.C., on March 21, 2024. MANDEL NGAN/AFP via Getty Images In their 88-page complaint, government attorneys alleged Apple violated the Sherman Antitrust Act, including by employing "a series of shapeshifting rules and restrictions in its App Store guidelines and developer agreements that would allow Apple to extract higher fees, thwart innovation, offer a less secure or degraded user experience, and throttle competitive alternatives." Specifically, investigators alleged the tech giant — which brought in nearly $400 billion in revenue last year — boxed out its smaller competitors by blocking the expansion of so-called "super apps" that provide identical services across devices; disrupting messaging formats and capabilities between Apple and non-Apple devices; and monopolizing the use of tap-to-pay functions on iPhones to only the Apple Wallet. Users have long been frustrated by discrepancies when sending messages between Apple and non-Apple products, including lower media quality, diminished editing capabilities and even different colors for the messages themselves. Garland said those issues were examples of Apple degrading users' experience to entice them to stay in the company's ecosystem. "As any iPhone user who has ever seen a green text message or received a grainy, tiny video can attest, Apple's anti-competitive conduct also includes making it more difficult for iPhone users to message with users of non-Apple products," he said. "It does this by diminishing the functionality of its own messaging app, and by diminishing the functionality of third-party messaging apps." Apple's alleged anti-competitive practices did not stop there, however, according to investigators. They also allegedly worked to stifle the use of non-Apple smartwatches by limiting how users interacted with them on the iPhone and used cloud streaming, location services and web browsers on iPhones to snuff out smaller rivals. "Critically, Apple's anticompetitive conduct not only limits competition in the smartphone market, but also reverberates through the industries that are affected by these restrictions, including financial services, fitness, gaming, social media, news media, entertainment, and more," the complaint alleged. "Unless Apple's anticompetitive and exclusionary conduct is stopped, it will likely extend and entrench its iPhone monopoly to other markets and parts of the economy." The government asked the court to order Apple to cease its allegedly anti-competitive activity and stop undermining cross-platform services and hardware. The plaintiffs said the court should take action needed to "restore competitive conditions in the markets affected by Apple's unlawful conduct." In response to the suit, Apple said in a statement that the litigation "threatens who we are and the principles that set Apple products apart in fiercely competitive markets." "If successful, it would hinder our ability to create the kind of technology people expect from Apple — where hardware, software, and services intersect. It would also set a dangerous precedent, empowering government to take a heavy hand in designing people's technology," the company said. "We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it." Apple is not the first behemoth in the tech space to face scrutiny from the Justice Department's antitrust division. Over the last few years, Google has faced two lawsuits — one during the Trump administration and another during President Biden's administration — that alleged monopolistic business practices. Jo Ling Kent and Andres Triay contributed reporting.
Trump pleads for donations, citing threat of losing Trump Tower, as bond deadline looms 2024-03-21 17:30:11+00:00 - As the deadline for Donald Trump to post bond for his $464 million civil fraud judgment inches closer, the debt-laden former president's campaign is fundraising off Trump Tower's fate. In a text message to supporters on Wednesday, a fundraising committee for Trump cast his financial woes — which stem in large part from his massive legal bills — as a ploy by Democrats, including New York Attorney General Letitia James, to "stifle" his campaign. "Insane radical Democrat AG Letitia James wants to SEIZE my properties in New York. THIS INCLUDES THE ICONIC TRUMP TOWER!" the message reads, with prompts for donations of $20.24 and upward. “Democrats think this will intimidate me. They think that if they take my cash to stifle my campaign, that I’ll give up! Here’s one thing they don’t know: WE WILL NEVER SURRENDER!” It's not even clear whether Trump could use money raised in this way to pay the civil judgment. As Reuters points out, "[w]hile federal law prohibits the use of campaign money for personal expenses, Trump has been able to use donor money to pay some of his lawyers’ fees." Trump is not one to shy away from asking for donations at every possible opportunity, but his latest effort underscores some real concern about his money troubles. Ahead of the March 25 deadline, his lawyers have been scrambling to secure a bond for the full fraud judgment; in a court filing this week, they called it a "practical impossibility" and said that they had already been rejected by 30 surety companies that would not accept real estate as collateral. Trump’s legal troubles and the financial costs that have come with them loom large over his presidential campaign. He has been paying his legal bills through the Save America PAC, but the group’s spending outpaced the amount it raised last month. The former president already posted a $91.6 million bond this month to appeal the judgment in the E. Jean Carroll defamation case. Now, with his New York assets at stake, Trump is making a desperate plea to supporters to help bail him out, $20 at a time.
Reddit Rises 48% in First Day of Trading 2024-03-21 17:30:05+00:00 - Reddit shares rose 48 percent on Thursday in their first day of trading, in a sign of investor eagerness that set the stage for more tech companies to reach the stock market this year. Shares of the social media company began trading on the New York Stock Exchange at $47 after pricing at $34 on Wednesday in its initial public offering. The stock continued to rise before closing at $50.44. The pop put Reddit’s market capitalization at about $9.5 billion, slightly below the $10 billion it was valued at in the private markets three years ago. The listing is a milestone on a long road for Reddit, which was founded in 2005 in San Francisco. The site is best known for its message boards, where users can congregate on forums known as subreddits to research and discuss everything from parenting to power washing to Labrador retrievers. Over the years, the company struggled through many of the issues facing the largest social media firms, such as how to moderate speech and make money.
Biden administration to cancel $5.8bn in student debt for public service workers 2024-03-21 17:28:00+00:00 - The Department of Education announced on Thursday plans to cancel $5.8bn in student debt for 77,700 public service workers who qualify under the Public Service Loan Forgiveness (PSLF) program. The program, which was created in 2007, promises student debt cancellation to graduates working full-time in public service jobs in government and the non-profit sector. The program only went into effect in 2017 – but the Department of Education under the Trump administration rejected the vast majority of applicants for relief when it kicked in. Biden’s ramped-up efforts to cancel student debt come as the 2024 election approaches and polls show Biden struggling with young voters, in large part due to his support for Israel’s war in Gaza. He has leaned on young Democrats in Congress to carry his message that student debt is a top concern for his administration – like Maxwell Frost, the youngest member of Congress, who touted Biden’s position on student debt cancellation earlier this month. By making funding already outlined in law available to borrowers, Biden is attempting to make good on his promise to address the student debt crisis despite a US supreme court ruling last year that killed his $430bn debt relief program. The plan the supreme court struck down would have applied to individuals earning less than $150,000 a year, cancelling $20,000 for Pell grant recipients and up to $10,000 for others. “Today, more than 100 times more borrowers are eligible for PSLF than there were at the beginning of the administration,” said the US education secretary, Miguel Cardona, in a statement on Thursday. “The Biden administration is turning a promise broken under our predecessor into a promise kept.” Student debt has ballooned in the last two decades, with federal and state governments slashing spending on higher education and Americans increasingly turning to college and graduate school in search of job opportunities in the wake of the 2008 economic crash. For-profit colleges, with higher acceptance rates, attract students but often leave them saddled with predatory loans. As of the Thursday announcement, the Biden administration has approved $146.3bn in student debt cancellation over the course of his first term in office, according to the Department of Education. The Public Service Loan Forgiveness program accounts for $62.5bn of the total allocation of debt relief since Biden took office. skip past newsletter promotion Sign up to First Thing Free daily newsletter Our US morning briefing breaks down the key stories of the day, telling you what’s happening and why it matters Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion “Through all of our various student debt relief actions, nearly four million Americans have had their student debt cancelled under my administration,” said Biden in a statement on Thursday. “And, in the wake of the supreme court’s decision on my administration’s original student debt relief plan, we are continuing to pursue an alternative path to deliver student debt relief to as many borrowers as possible as quickly as possible.”
Hyundai and Kia recall vehicles due to charging unit problems 2024-03-21 17:27:00+00:00 - Hyundai and Kia are recalling a combined 147,110 vehicles — including the electric vehicles Ioniq and the EV6 —because a part inside the cars may stop charging their batteries, federal auto safety regulators said. The recalled Hyundai and Kia vehicles have what the automakers call an "integrated charging control unit" — which is responsible for charging the car's 12-volt backup battery. But the charging unit may not operate correctly and eventually cause a driver to lose power while operating the car. Driving during a potential loss of power increases the risk of someone getting into an accident, Hyundai and Kia said in recall documents submitted to the National Highway Traffic Safety Administration. The Hyundai recalled vehicles, which included several electric Genesis cars, were manufactured between October 2021 and March 2024, recall documents state. The Kia vehicles were produced between November 2021 and February 2024. The recalled vehicles are: 2023-2024 Genesis GV60 2023-2024 Genesis GV70 2023-2024 Gensis GV80 2022, 2023 and 2024 Hyundai Ioniq 5 2023-2024 Hyundai Ioniq 6 2022, 2023 and 2024 Kia EV6
Bernie Moreno's success is a warning for Biden about Latino voters 2024-03-21 17:22:12+00:00 - Bernie Moreno’s victory in the Ohio Republican Senate primary Tuesday is just the latest example of how Latinos will be central players in Donald Trump’s 2024 election aspirations. And it’s simplistic to conclude that President Biden’s 2020 success with Latino voters will be replicated this cycle. Exit polls confirmed that Trump’s endorsement of Moreno propelled him into a critical November contest against incumbent Democrat Sherrod Brown that could determine control of the Senate. Born in Bogotá, Colombia, Moreno has an origin story that is textbook American Dream material. In Trump’s worldview, immigrants might be “poisoning the blood” of America or are “not people,” but not all immigrants, and definitely not an immigrant like Moreno, who is always quick to point out how much he wanted to assimilate into his adoptive country. The president’s campaign has become more vocal in making sure Latino voters remain in the blue column. “I wanted to become a U.S. citizen really badly. That was something that was really important to me. Even though I thought it was kind of cool that I had a card that said I was an alien, I thought maybe I wanted to be a citizen, that would be better,” Moreno said Tuesday night during his victory speech, emphasizing earlier in his remarks that “he was a kid from South America” who thought he was “on a field trip” as a 5-year-old when his family arrived in South Florida from Colombia. Moreno’s story and business success represent a familiar belief in U.S. Latino communities — that some immigrants from Latin America are better than other immigrants from Latin America. Trump echoed this sentiment in last year’s controversial interview with Univision anchor Enrique Acevedo. Citizenship, privilege and striving for acceptance by American society are appealing to the Bernie Morenos of the world, and there is enough support out there for someone like Trump to keep gaining with the estimated 17.5 million U.S. Latino voters expected to cast a ballot in 2024, particularly in a swing state like Ohio. A recent New York Times article about Latino voters in 2024 noted that “Former President Donald J. Trump’s growing support among Latino voters is threatening to upend the coalition that has delivered victories to Democrats for more than a decade, putting the politically divided group at the center of a tug of war that could determine elections across the country.” Earlier this month, Vox reported that according to one new poll of Latino voters, 19% of respondents would change “their political affiliation either by switching parties or becoming independents,” with 61% of that sample saying they would consider leaving the Democratic Party altogether. The consequences of such trends would be disastrous for the Biden, which is part of the reason why the president’s campaign has become more vocal in making sure Latino voters remain in the blue column. “I need you back,” Biden said in Phoenix on Tuesday, acknowledging that without the 2020 Latino support he and Vice President Kamala Harris received in swing states like Arizona and Nevada, the prospects of a second term were bleak. A new series of campaign ads and radio appearances by the president and others touts the administration’s accomplishments to Latino voters and emphasizes a clear contrast to Trump. “We have to stop this guy [Trump], we can’t let this happen,” Biden said on Univision Radio. “We are a nation of immigrants.” Republican politicians have done a very, very bad job about talking about immigration in a reasonable way.” BERNIE MORENO in 2021 That contrast hit a bump during the State of the Union, where Biden eventually had to apologize for the use of an “illegal” in an off-script remark. Still, it’s already been established that Biden-Harris 2024 has conceded the immigration debate to Republicans. Instead, the president is banking on women’s issues, threats to democracy, health care and the economy. Those issues also matter to Latino voters: a 2023 poll of over 3,000 Latino voters found inflation, jobs and the economy as a whole as the top three issues, with immigration coming in sixth. As Biden, Harris and their Latino advocacy allies work to keep the 2020 coalition intact, Trump’s extremist and dehumanizing language will still rankle many Latino voters. Someone like Moreno can be the Latin American immigrant buffer Republicans need to win over more Latinos in 2024, as immigration is still seen as the nation’s top political issue and is also viewed as a crisis by 75% of Latino voters. Even Moreno, who rarely strays from applause lines for the GOP base, acknowledged in a 2021 interview that Republicans have taken the immigration debate too far. “Republican politicians have done a very, very bad job about talking about immigration in a reasonable way,” Moreno said back then, “because when you talk about immigration in a way that’s harmful, what you do is you come across as somebody who doesn’t like immigrants, who comes across as could be racist,” adding that debates need to be done in a “respectful way.” In 2016, Moreno even sounded like a moderate Democrat, calling for a pathway to citizenship for undocumented individuals. That is a far cry from what Moreno said at a candidate forum last month, when he supported mass deportation of all individuals not authorized to live in this country: “We have to deport anybody who is in this country illegally, no matter what it takes to make that happen ... Plus, changing our asylum laws.” These changes in positions might all be attributed to the value of Trump’s endorsement for a Republican candidate, but it also reveals that Latinos like Moreno have viewed assimilation and immigrant privilege as political ideologies too. The complexities of Latino voters have long been established and both political parties are beginning to fully understand that Latinos are just the next set of swing voters. Winning their support will be key to any party’s electoral strategy moving forward.
Google and Meta Circling the Market on a TikTok Ban Rally 2024-03-21 16:58:00+00:00 - Key Points TikTok is at risk of being banned in the U.S., where most of its users are, leaving a significant gap to be filled in the market. Meta and Alphabet are circling the market, ready to take new users and increase activity. However, there can be only one. Asset managers and Wall Street analysts think Meta is the winner, but Alphabet can be a hedge if they are wrong. 5 stocks we like better than Technology Select Sector SPDR Fund The online economy is about to take another shift soon. More influencers and advertising budgets saw unparalleled opportunity in Bytedance’s up-and-coming platform, TikTok; however, its days in the U.S. market are now ticking. After passing a bill that would force Bytedance to spin off TikTok to avoid granting U.S. user data to the Chinese government, a five-month window to decide will spur a new set of winners. The truth is that TikTok is winning in all statistics against its major competitor, Instagram. As Meta Platforms Inc. NASDAQ: META realizes the opportunity it could have if TikTok abandons the arena, the company may increase its research and development (R&D) budgets to turn its ship around. Get XLK alerts: Sign Up On another note, Alphabet Inc. NASDAQ: GOOGL sees the opportunity in short-form content as its YouTube platform now hosts ‘Shorts’. Which of these two takes the lion’s share of potential TikTok users looking for a new home? Only the market can answer that. Meta Has Its Spoon Ready As of 2022, an average of 17.6 million hours were spent per day watching Instagram Reels. This compares to a more than ten times larger 197.8 million hours on average spent on TikTok daily. Math is a double factor affecting user count and time spent per user. The average TikTok user spends roughly 52 minutes daily on the platform. In comparison, the statistic goes down to 30 minutes daily on Instagram. Despite Instagram having more than 2 billion monthly active users, more than 1 billion more than TikTok, the math shows that people prefer to stay on TikTok longer. All of this matters because if TikTok were erased from the list of available apps in the U.S. market, many users would need to find a new home in the next player down the food chain. This happens to be Instagram, but this trend may already be priced into the stock today. Markets don’t wait for the news to appear; they shift their money and predict tomorrow’s newspaper. This is why Meta stock trades at 97% of its 52-week high and a price-to-earnings (P/E) ratio 25.5x. Its valuation makes it 17% more expensive than Alphabet’s 21.8x P/E valuation. Is Google the Better Play? Wall Street doesn’t think it is. Following how analysts have expressed their views in both Meta and Alphabet, you too can probably guess who the likely winner is in this battle. Analysts at Wells Fargo & Co. NYSE: WFC see a price target of $144 a share for Alphabet, set as of March 2024. Meanwhile, these same Wells Fargo analysts saw a $609 valuation for Meta in the same month. These two price targets translate to a 2.3% downside in Alphabet and a 20% upside in Meta. Now that the choice is clear amongst those who make a living predicting the future price of stocks, it’s time to see if the market agrees. Because there is a 17% premium in Meta’s P/E to Alphabet’s, the conclusion is that there must be a good reason for the willingness to overpay. While both stocks saw institutional buying, the trend clearly favors Meta over Alphabet. It may be their own way of backing both horses in case they are wrong because the Vanguard Group favored its Meta position by adding 1.7% to it as of March, while only 1.3% for Alphabet. Another respected Wall Street firm is Fisher Asset Management. This one had its own opinions of Meta versus Alphabet. By increasing its positions in Meta by 8.1%, it let its preference be known, as it only chose to add 3.3% to Alphabet instead. It seems that, to these institutions, Meta is the one to come out a winner from this debacle, while Alphabet acts as a hedge in case that they are wrong in this call. What Can You Do? Some argue that TikTok has selling and marketing capabilities for businesses that Instagram doesn’t. They may be correct, but they also forget that Meta owns WhatsApp. This app does support store and business pages within the same Instagram environment. There lies the hidden opportunity these analysts and asset managers spotted. While still a speculative thought, it is not far from the reality that today’s online economy – and nomad workers – could adopt. After all, 197.8 million daily hours of consumer activity will be filled. After all, while Alphabet performed hand-in-hand with the rest of technology stocks, Meta outperformed the Technology Select Sector SPDR Fund NYSEARCA: XLK by as much as 106% over the past 12 months. Price action is often right, and so is Wall Street. → Claim Your Complimentary Bitcoin Reward (From Crypto Swap Profits) (Ad) Before you consider Technology Select Sector SPDR Fund, 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 Technology Select Sector SPDR Fund wasn't on the list. While Technology Select Sector SPDR Fund currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
More than 440,000 Starbucks mugs recalled after reports of injuries from overheating and breakage 2024-03-21 16:25:00+00:00 - Starbucks reconsidering closing only Trenton store Starbucks reconsidering closing only Trenton store 00:45 More than 440,000 Starbucks mugs are being recalled after reports that the drink containers can overheat and break, leading to burns and other injuries. The mugs were manufactured by Nestlé USA and sold as part of 2023 holiday Starbucks-branded gift sets at Target, Walmart and the military retail outlet Nexcom. The gift sets were sold online and in stores from November 2023 through January 2024 for about $10, $13 or $20, depending on the gift set, according to the recall notice posted Thursday by the Consumer Product Safety Commission. In a separate statement, Nestlé USA said it discovered the problems with the mugs when consumers contacted the company. The Starbucks Peppermint and Classic Hot Cocoa Ceramic Mug (16 oz.) gift set has been recalled. It was sold at Target stores, according to Nestle USA. CPSC.gov The mugs, which are made of a ceramic material with a metallic coating, can overheat or break if they are microwaved or filled with "extremely hot liquids," according to the recall notice. There have been 12 reports of the mugs overheating or breaking, which resulted in 10 injuries including severe burns and blisters on consumers' fingers or hands and one person who suffered a cut finger. Here are the gift sets that are part of the recall: Starbucks Holiday Gift Set with 2 Mugs Starbucks Classic Hot Cocoa and Mug Starbucks Peppermint and Classic Hot Cocoas and Mug Starbucks Holiday Blend Coffee and Mug Nestlé USA said the recall doesn't impact any other Nestlé USA or Starbucks-branded products. Consumers should immediately stop using the recalled mugs, the CPSC said. People who bought the mugs can either return them where they purchased them to receive either cash or a gift card refund, or receive a full refund from Nestlé USA. Location of the gift set identifier code on the bottom of the mug CPSC.gov To get a refund from Nestlé USA, affected consumers should visit this site and scroll down to "Leave Us a Message." Once click on "complaint," and select "recall" from the drop-down menu. Next, you'll have to attach a photo of the mug or provide the gift set identifier code — located on the bottom of the mug, then complete the form and hit "send." Consumers don't need a receipt to receive a full refund, according to the recall notice.
National Plan to Look Into Homeowners Insurers Hits a Hurdle 2024-03-21 16:08:01.867000+00:00 - A sweeping effort by state regulators to find out why homeowners insurance is so expensive and hard for customers to secure is already facing challenges, as some crucial states say they may opt out of the call for data. The National Association of Insurance Commissioners, an umbrella group representing state insurance regulators, said on March 8 that state agencies were asking insurers for detailed data on how they were treating their customers, including information about the kinds of coverage they offer in various ZIP codes, the recent history of claims payouts in those areas, the size of deductibles for insurance customers and their opportunities for discounts by fixing or upgrading parts of their homes. At the time, a top N.A.I.C. official said the goal was to “address the critical challenge of the affordability and availability of homeowners’ insurance and the financial health of insurance companies.” The group said data requests would reach more than 400 insurance companies and offer insight into about 80 percent of all homeowners’ plans in the United States as measured by total insurance premiums. Some of the data would be shared with the Treasury Department to help it pinpoint where homeowners face the highest risks and living costs. State and federal officials called the effort a watershed moment for the insurance sector. The request is the biggest and broadest request for information that insurance companies have had to face from a regulator in decades. Such granular data has never been collected on a national level. But each state regulator can decide whether to participate in the data call, and some of the states where homeowners face the greatest risks of damage from severe storms and where insurance markets are most turbulent — like Louisiana, Texas and Florida, where Republican politicians regularly balk at policies dealing with climate change — may either share limited data or opt out of the program entirely.
Interest rates held by the Bank of England – but a cut is likely on the way 2024-03-21 15:43:00+00:00 - The Bank of England is inching closer towards the first interest rate cut since the Covid pandemic, but just not yet. After several months of inflation falling more sharply than anticipated by many economists, the question for the Bank has been when, rather than if, it would begin taking action to lower borrowing costs. Although Threadneedle Street kept interest rates unchanged on Thursday at 5.25% – the highest level since the 2008 financial crisis – its policymakers took steps to set the stage for forthcoming cuts to ease the pressure on households and businesses. Unlike a month ago when two members of the Bank’s nine-strong rate-setting monetary policy committee (MPC) pushed for an increase in borrowing costs, eight members voted for a hold this time around. The ninth member of the panel, Swati Dhingra, again backed a cut of 0.25 percentage points. It was the first time since September 2021 – when the government’s pandemic furlough scheme was ending – that no one on the MPC voted for an increase in interest rates in a clear sign that policymakers are coming round to the view that the battle against inflation is being won. Underscoring the shift in direction, the Bank’s governor, Andrew Bailey, said he believed the central bank was “not yet at the point where we can cut interest rates, but things are moving in the right direction”. His comments will provide some relief for Rishi Sunak, who has struggled to make the case that 2024 is Britain’s “bounce back” year from the economic slump triggered by the pandemic and cost of living crisis. Inflation has fallen by the most in almost half a century, from more than 10% a year ago to 3.4% in February. Most economists expect it will fall back further in the months ahead to dip below the Bank’s 2% target, helped by a widely expected fall in energy bills from April. Surveys of business activity indicate Britain is on the road to recovery from a recession that started at the end of last year. However, households remain under pressure from much higher interest rates and living costs than three years ago, while the labour market is cooling. In previous times such conditions could have warranted rapid action from Threadneedle Street. However, the Bank worries that inflation will return back above its target later this year, amid resilient wage growth and rising prices in the service sector of the economy. For this reason the Bank is most likely to wait for official jobs market and inflation figures to be published in April and May before taking action. Based on the data so far and signals from Thursday’s decision, financial markets expect a first cut in June. This will however mean a tough waiting game for Sunak, who is leading a government in desperate search of good news on the economy before he takes the plunge to call a general election. Britain has had three prime ministers since the Bank last cut interest rates in March 2020. Sunak will be hoping for progress in the economy to allow Threadneedle Street to take action before his time in Downing Street runs out.
KB Home’s Stock Price Can Move Higher, Here’s Why 2024-03-21 15:30:00+00:00 - Key Points KB Home had a solid quarter and raised guidance after backlogs showed sequential growth. Cash flow and capital returns are solid, improving shareholder value over the last twelve months. Analysts are raising their targets following the report, which may lead the stock to a new high. 5 stocks we like better than KB Home KB Home’s NYSE: KBH stock price can increase in 2024 despite struggles with traction following the Q1 release. The company is firing on all cylinders and driving value for shareholders with no signs of stopping. If anything, the F2024 guidance is weak because there is a change in the wind. The FOMC is on track to start cutting rates this year, putting the economy and housing market on the path to acceleration. The timing of the first cut is questionable, and the pace may be slower than currently indicated, but it doesn't matter; rates have peaked and there's nowhere for them to go now but down. That and the pent-up demand in the housing market will keep homebuilders busy for years. Get KB Home alerts: Sign Up KB Home's Cash Flow Drives Value for Investors KB Home had a decent quarter, with growth accelerating to 6.5% from the prior quarter's 6.0%. The $1.47 billion in revenue is 70bps better than expected on a 9% increase in deliveries offset by a 2.7% decline in average selling price. More significantly, the company sustained margin despite the deleveraging of home prices and produced better-than-expected results. Aided by share repurchases, net income rose by 10% and diluted GAAP earnings by 21%. Internal metrics and guidance are favorable. The company's net new orders increased by 55% to drive a 5% sequential increase in the backlog. The value of new orders also outpaced volume growth by 300bps, proving some leverage for the results. The only bad news is that, despite an increase from the prior guide, the expected annualized revenue of $6.5 to $6.9 billion aligns with the consensus. It's no catalyst for a rally, but it doesn't give a reason to sell either. KB Home Builds More Than Just Houses: Shareholder Value The driving force for share price gains in KBH stock and other home builders is the cash flow, balance sheet, capital returns, and increasing shareholder value. KB Home's cash flow was sufficient in 2023 to maintain a fortress balance sheet while investing in growth, repurchasing shares, and paying dividends. The dividend is below average, yielding 1.15%, but safe and compounded by share repurchases. Share repurchases reduced the share count by 9% YOY at the end of Q1 and are expected to continue steadily through year-end. The balance sheet is in great shape. The cash position is down slightly but offset by increases in inventory and investments. Assets are up and liabilities down, resulting in increased shareholder equity despite the massive share repurchases. Shareholder equity is up 1.8%, and book value by 14%, and both are expected to improve sequentially as the year progresses. Analysts Are Leading KB Home Stock Price Higher The analysts' consensus target is up 60% YOY and increasing after the Q1 release. The price target lags the market but is offset by the range of recent targets, which are well above it. Marketbeat tracks a half dozen revisions following the release, and only one includes a downward revision to the price target of $78, the highest target revision offered so far. The other revisions include targets ranging from $64 to $69, which is the hurdle. The $69 target aligns with the current action and may provide a ceiling for the market. If so, KBH could become range-bound or correct to lower levels before moving higher later in the year. The technical action is mixed. The stock is in an uptrend but shows resistance at $70, which could cap gains. The market set a new high following the Q1 release but sold off during the session, creating divergences in the indicators that may lead to lower prices. Critical support is at the 30-day moving average. It could sell off to lower lows if the market falls below that level. The next target for solid support would be $64, and the market could move even lower. If support at the 30-day EMA is sustained, shares of KBH could set a new high before summer. → AI Cracks Open Largest Untapped Energy Reserve on Earth (From Banyan Hill Publishing) (Ad) Before you consider KB Home, 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 KB Home wasn't on the list. While KB Home currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Intuitive Machines: Charting a Course Among the Stars 2024-03-21 15:30:00+00:00 - Key Points Intuitive Machines is a significant player in lunar exploration, with successes in the Artemis program, but it faces financial challenges in a competitive space market. The company's revenue is driven by NASA contracts and the OMES III program, with efforts to diversify into commercial lunar data services offering the potential for growth. Investors should consider Intuitive Machines' recent earnings, the status of its lunar lander mission, and the inherent risks of the aerospace industry when evaluating the stock. 5 stocks we like better than Intuitive Machines Intuitive Machines NASDAQ: LUNR has positioned itself as a pivotal player in the space exploration and aerospace sector, where ambition and innovation collide. Intuitive Machines embodies the spirit of the new space age from its historic lunar landing, marking the United State’s return to the Moon after a hiatus of over 50 years, to its expanding portfolio of lunar technologies and services. Get Intuitive Machines alerts: Sign Up Intuitive Machine’s earnings release for the fourth quarter and full year of 2023 (Q4 FY 2023) provides a detailed picture of the company’s financial performance and offers clues about its trajectory. After a successful lunar touchdown, has Intuitive Machines landed a compelling financial report, setting the stage for a long and profitable mission? Houston, We Have Revenue Growth The company’s latest earnings report reveals a mix of progress and continued challenges in Intuitive Machines' financial performance. The company experienced a year-over-year revenue decrease. In FY 2023, revenue reached $79.5 million compared to $85.9 million in FY 2022. This decrease is primarily attributable to project milestones and contract completion timing. NASA's Commercial Lunar Payload Services (CLPS) initiative and the more recent OMES III contract are key drivers of the company's revenue. It's important to note that government contracts can have revenue recognition patterns that impact the timing of income reflected on financial statements. While Intuitive Machines recorded a net operating loss of $(56.2) million in FY 2023, a narrower loss of $(5.9) million in the fourth quarter of 2023 is encouraging. This reduction in quarterly operating loss indicates efforts to rein in costs. Furthermore, achieving a positive gross margin in December 2023, primarily due to OMES III revenue, highlights improving operational efficiency. This positive margin signifies that the company generates an acceptable profit after deducting direct costs associated with delivering its lunar services. Intuitive Machines ended 2023 with a solid backlog of $268.6 million, an increase from $201.9 million in the prior year. Backlog denotes contracted work yet to be completed and translated into revenue. Thus, this substantial backlog bodes well for future revenue potential. The company's cash position strengthened considerably, reaching $54.6 million by March 1, 2024. This increase resulted primarily from warrant exercises by an institutional investor, providing enhanced financial flexibility to pursue growth initiatives and investments. Statements made during the earnings call indicated Intuitive Machines will continue to focus on innovation, strategic partnerships, cost control, and efficient execution of its expanding lunar programs. Navigating the cost-intensive aerospace industry remains challenging, but revenue growth, improving margins, a healthy backlog, and sufficient cash reserves offer encouraging signs. Lunar Ambitions in a Competitive Orbit NASA's Artemis campaign represents a major frontier in 21st-century lunar exploration, and Intuitive Machines plays a significant role in this endeavor. Their successful lunar landing mission demonstrated the company's technical proficiency and bolstered its reputation within the industry. Existing contracts secured within the Artemis program and the potential to win additional awards indicate that Intuitive Machines is likely to remain a fixture in NASA's ambitious lunar plans. Recognizing opportunities beyond government contracts, Intuitive Machines proactively seeks to participate in the burgeoning commercial lunar market. The company's strategic focus on services such as lunar data gathering and analysis positions it as a knowledge facilitator in the rapidly evolving space economy. If Intuitive Machines successfully monetizes lunar data and participates in developing lunar resource utilization efforts, significant new revenue streams could be unlocked. However, it's essential to acknowledge that Intuitive Machines is not the sole player in the commercial space race. Companies like Astrobotic and Firefly Aerospace also vie for dominance in lunar markets. To maintain and expand its market share, Intuitive Machines must continuously refine its value proposition, highlighting the unique advantages of its services and technologies. Success in this competitive landscape hinges on demonstrating innovation and delivering reliable performance. Countdown to Investor Impact The current status of Intuitive Machines' lunar lander is a critical factor for investors to monitor. The lander's ability to successfully restart upon the return of ample sunlight to its South Pole landing site will determine the immediate outcome of the mission and likely significantly impact investor sentiment in the near term. Positive news for Intuitive Machines on this front could boost the company's stock price, while a failure to restart could lead to a decline. Beyond the lunar lander, investors should closely track any recent news developments or announcements from Intuitive Machines. New strategic partnerships, contract wins, or leadership changes could signal positive momentum or potential challenges for the company. Additionally, it's crucial to pay attention to shifts in Intuitive Machine’s insider stock holdings. Major shareholders buying or selling sizable amounts of stock can convey either confidence in the company's future or raise concerns about its trajectory. While these specific updates offer insights into Intuitive Machines' outlook, investors must also be aware of the broader risks that characterize the aerospace sector. This industry is known for being capital-intensive, requiring significant investments in technology development and infrastructure. Projects often have extended timelines, meaning that returns on investment may not be realized for years. Considering these inherent risks is essential when making informed investment decisions about any aerospace company, including Intuitive Machines. Intuitive Machines embodies the spirit of the transformative age in space exploration. The company's successful lunar landing, participation in the Artemis program, and push for commercial space activities underscore its ambition. Investors must carefully weigh the company's strong revenue growth, promising backlog, and technological advancements against the operating losses, competitive landscape, and risks characteristic of the aerospace industry. As Intuitive Machines continues to chart its course amongst the stars, staying attuned to company developments will guide informed investment decisions. Before you consider Intuitive Machines, 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 Intuitive Machines wasn't on the list. While Intuitive Machines currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
The Psychedelic Evangelist 2024-03-21 15:00:13+00:00 - Before he died last year, Roland Griffiths was arguably the world’s most famous psychedelics researcher. Since 2006, his work has suggested that psilocybin, found in magic mushrooms, can induce mystical experiences, and that those experiences, in turn, can help treat anxiety, depression, addiction and the terror of death. Dr. Griffiths and his colleagues at Johns Hopkins University received widespread recognition among scientists and the popular press, helping to pull the psychedelic field from the deep backwater of the 1960s hippie movement. This second wave of research on the hallucinogenic compounds bolstered political campaigns to decriminalize them and spurred biotech investment. Dr. Griffiths was known to friends and colleagues as an analytical thinker and a religious agnostic, and he warned fellow researchers against hype. But he also saw psychedelics as more than mere medicines: Understanding them could be “critical to the survival of the human species,” he said in one talk. Late in life, he admitted to taking psychedelics himself, and said he wanted science to help unlock their transformative power for humanity. Perhaps unsurprisingly, he held a vaunted, even prophetic role among psychonauts, the growing community of psychedelic believers who want to bring the drugs into mainstream society. For years, critics have denounced the outsize financial and philosophical influence of these advocates on the insular research field. And some researchers have quietly questioned whether Dr. Griffiths, in his focus on the mystical realm, made some of the same mistakes that doomed the previous era of psychedelic science. Now, one of his longtime collaborators is airing a more forceful critique. “Dr. Griffiths has run his psychedelic studies more like a ‘new-age’ retreat center, for lack of a better term, than a clinical research laboratory,” reads an ethics complaint filed to Johns Hopkins last fall by Matthew Johnson, who worked with Dr. Griffiths for nearly 20 years but resigned after a charged dispute with colleagues. Image Roland Griffiths, director of the Center for Psychedelic and Consciousness Research at Johns Hopkins, in 2021. Credit... Matt Roth for The New York Times
Market Rally To Continue After Fed Gives Traders What They Wanted 2024-03-21 15:00:00+00:00 - Key Points The FOMC gave the market what it wanted, and the S&P 500 extended the rally to new highs; more new highs are likely. The FOMC affirmed an outlook for three rate cuts this year, indicating an economic pivot that will unfetter activity. The market is in rally mode but may hit a hard ceiling before summer if the data doesn't cooperate with the FOMC intent. 5 stocks we like better than SPDR S&P 500 ETF Trust The FOMC news was good for the market despite failing to indicate when the first interest rate cut would come. While the timing of reductions is questionable, the Fed reaffirmed an outlook for three twenty-five basis point cuts this year, three for next, and three for 2026, eventually bringing the target rate to neutral soon after. The takeaway is that the U.S. economy is on the cusp of an economic pivot that will unfetter activity, boosting revenue and earnings for S&P 500 NYSEARCA: SPY companies. That is why the market is in rally mode, but there are risks. Get SPDR S&P 500 ETF Trust alerts: Sign Up An Improving Growth Outlook Sends the S&P 500 to New Highs The S&P 500 rallied to new highs because the growth outlook is improving across sectors. Numerous analysts' revisions were released within the first 18 hours of the FOMC statement, upping the 2024 GDP target by 70bps to 2.1%. The FOMC also upped its labor market assessment, calling it strong compared to moderate in the previous statement. The risk for markets is that inflation will persist at above-normal levels through mid-year, altering the FOMC’s policy stance. Consumer and government spending will support economic growth and sustain a higher inflation level for longer. Fed Chief Jerome Powell made it clear the committee would keep rates higher "for longer, if appropriate" if the data doesn't cooperate. As it stands now, the data is highly questionable. The latest CPI index showed inflation accelerating from the previous month at the headline and core levels, with YOY inflation accelerating at the headline and the core hotter than expected. The next read of the PCE Price Index is a week away and likely to confirm that news. This puts the Fed in a challenging position regarding cuts: the labor mandate is met and inflation is still hot. Economists also raised their targets for PCE in 2024, upping consensus by 20 bps to 2.6%. Peak Rates Are Here, But Lower Rates May Not Come as Soon as Expected The FOMC says it will cut rates three times this year, but it is quickly running out of time. There are only six meetings left this year, and with no cut expected before summer, only a few meetings are left for them to follow through on their intent. As it is, the timing of the first cut continues to move back, and will likely move further out as the spring progresses, due to housing markets, resilient consumer spending and oil prices. The housing market remains sluggish, but business conditions are sufficient to sustain higher housing prices. Shelter was a primary driver of increased CPI in February, up 0.4% for the month and 5.7% YOY, with no reductions expected. An interest rate cut would be counterproductive for the Fed because it would empower the housing market. Gasoline was also a significant driver of inflation, and the impact may grow. Gasoline prices are down compared to last year but showed the hottest month-to-month gain of any component, up 3.8%. The cause? Rising oil prices, which are up 17% from the December lows and heading higher on consumption and geopolitical risk. Cutting rates too soon would boost energy demand and oil prices, underpinning inflation. And the consumer? Retail sales were slightly below consensus for February, but solid at up 0.6%. No sign of recession there, and the forecasts for the year are rising. Economists at the National Retail Federation have lifted the target range to 2.5% to 3.5%, compared to 2023's 2.6%. Is The S&P 500 Rallying Toward a Hard Ceiling? The S&P 500 is in rally mode and may continue to rally through late spring or early summer. The risk is that inflationary data will not cooperate, leading the FOMC to push back the timing of cuts once more. In this scenario, there would not be three cuts this year without an economic recession, and a recession seems unlikely. Because the market is pricing in a significant acceleration of earnings power for the S&P 500 for the back half, predicated on interest rate reductions, higher-for-longer will cut into the outlook and undercut the market's valuation. The index is trading well above its long-term average P/E ratios, the 30-day EMA, the 150-day EMA and any technical target that can be called strong. It is set up for a deep correction when the correction comes; so, yes, the S&P is rallying toward a potentially hard ceiling and may reach it by late spring. → Major Elon Musk Crypto Leak Revealed (From Crypto 101 Media) (Ad) Before you consider SPDR S&P 500 ETF 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 SPDR S&P 500 ETF Trust wasn't on the list. While SPDR S&P 500 ETF Trust currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
U.S. Sues Apple, Accusing It of Maintaining an iPhone Monopoly 2024-03-21 14:30:39+00:00 - The federal government’s aggressive crackdown on Big Tech expanded on Thursday to include an antitrust lawsuit by the Justice Department against Apple, one of the world’s best-known and most valuable companies. The department joined 16 states and the District of Columbia to file a significant challenge to the reach and influence of Apple, arguing in an 88-page lawsuit that the company had violated antitrust laws with practices that were intended to keep customers reliant on their iPhones and less likely to switch to a competing device. The tech giant prevented other companies from offering applications that compete with Apple products like its digital wallet, which could diminish the value of the iPhone, and hurts consumers and smaller companies that compete with it, the government said. The Justice Department’s lawsuit is seeking to put an end to those practices. The government even has the right to ask for a breakup of the Silicon Valley icon.
Exploring the Bear Call Spread vs Bear Put Spread Strategies 2024-03-21 14:22:00+00:00 - If you've ever believed that a stock was headed lower but didn't want to take on the risk of short-selling the stock, then you can consider using options strategies instead. We've heard horror stories about short sellers who blew up their trading accounts when caught in a short squeeze. However, option spreads enable you to synthetically short stocks and indexes without the risk of triggering margin calls if the stocks run up against your position. The two common options strategies are the bear call spread vs the bear put spread. In this article, we will thoroughly review both strategies, the pros and cons and best use cases so that you can add them to your arsenal and use them properly to capitalize when a stock falls in value. Get Intel alerts: Sign Up Key Takeaway Short sellers debate between bear call spreads vs bear put spreads to profit from falling stock prices. We'll outline both strategies and best use cases for each so you are prepared to execute them whenever a bear market situation arises in a stock. Bear Call Spread A bear call spread is executed by selling and buying a call option at a higher strike price with the same expiration date. It is also called a short call spread and a credit call spread. You receive a credit with the first leg of selling or shorting a call option. You are making a bet that the stock will fall below the strike price by expiration. However, to avoid getting short-squeezed, we also buy a long call option at a higher strike price just in case the stock price rises. Adding the second leg of a long call caps the risk if the stock rises above the long call strike price. The maximum gain is received up front as a credit. The wider the width between the strikes results in a larger credit. The maximum risk is the width of strike prices minus the credit received. For example, XYZ is trading at $37, and we believe it will fall in price. We can implement a bear call spread by selling one in-the-money (ITM) $35 call and buying one out-of-the-money (OTM) $40 call. We receive a $300 credit from the short $35 call and spend $100 to buy the $40 call, resulting in a net credit of $200. The maximum profit is the $200 net credit received on the trade, which occurs if XYZ closes under the $35 short call price. The maximum loss is the difference between the strike prices of $500 minus the $200 credit received, resulting in a $300 maximum loss, which occurs if XYZ closes above the $37 long call. The breakeven price is calculated by taking the short call's strike price, which is $35, and adding the net premium of $2, which is $37. Bear Put Spread A bear put spread can be used in the same scenario. It's also called a put debit spread and consists of two trades or legs. The first leg consists of buying a put option. The second leg consists of selling a put option at a lower strike price. In this trade, you must pay a net debit rather than receive a net credit as you would with a bear call spread. Profits are made when the stock falls below the long put strike price and are capped at the short put strike price. The maximum gain is made if the stock falls under the short put price. Max loss is capped and limited to the debit you paid for the trade. For example, XYZ is trading at $35. We execute a bear put spread by buying one XYZ $35 put and selling 1 XYZ $30 put. The $35 long put cost $5, and selling the $30 put results in a $2 credit, costing us $3 for the trade. The maximum profit is between the strikes of $5 minus the $2 paid for the trade or $300. The maximum loss is the $200 cost of the trade if XYZ closes at $35 or higher. The breakeven price is the long put strike price of $35 minus the $2 credit, resulting in $33. When and How to Use Bear Call Spread and Bear Put Spread When determining when to use the bear put spread vs bear call spread, it pays to look at the context of the market and the underlying stock. While both strategies can be implemented when you believe the underlying stock price will fall, they also have nuances to consider. When to Use You can use a bear call vs bear put spread when you believe the market or stock price is decreasing. A bear call spread enables you to profit from Theta or time erosion. Time is on your side with these. You can gain from both the time erosion and stock price decline. Bear call spreads can usually be considered when the implied volatility is low, which results in more premiums for selling the call and a lower premium for buying the long call. A bear call spread can profit even if the stock is neutral to slightly bearish. You may also prefer to receive a net credit in your account rather than have to pay a net debit. However, a bear call spread can result in a larger maximum loss than the credit received since the loss equals the spread between the strike prices minus your credit received. A bear put spread can be used when implied volatility is higher since time is not on your side. Theta erosion makes your long puts lose value quicker as expiration approaches. With bear put spreads, you benefit from sharp spikes in volatility as that bumps up your extrinsic premium. Bear put spreads are preferred when you expect a stronger selloff. While you will pay a net debit for the trade, your max profit can be larger than your max loss. Your max loss is limited to the debit you paid to execute the trade. How to Use Let's review how to use both strategies using the daily candlestick chart for Intel Co. NASDAQ: INTC in the computer and technology sector as an example. Let's say we expect INTC stock price to fall due to the falling relative strength index (RSI) slipping under the 50-band. INTC is trading around $42.80. We select the April 12, 2024, expiration day, 29 days away. For a bear call spread, we would sell short one INTC $43 call and buy long one INTC $44 call. The implied volatility is considered historically low when it is under 50%. The implied volatility for the calls are around 36.5%, which is low. For a bear put spread, we would buy long one INTC 44 put and sell short one INTC $43 put. These puts also have historically low implied volatility, ranging from 36.17% to 37.08%. Based on the low implied volatility, it would be more beneficial to consider taking an INTC $43/$44 bear call spread over an INTC $44/$43 bear put spread. Compare Risks and Rewards (Bear Call Spread vs Bear Put Spread) Now, let’s compare some risks and rewards. Risks Bear call spreads and bear put spreads share risks if the underlying stock price rises. A bear call spread starts to lose money when the underlying stock rises above the long call strike price. A bear put spread starts to lose money when the underlying stock rises above the short put strike price. In the INTC $43/$44 call credit spread example, the trade loses money when the price rises above the $43.43 breakeven price level. The maximum Rewards The reward for a bear call spread is the net premium credit collected when the trade is executed. You get paid upfront first; from there, it can only go down. The reward for a bear put spread is the difference in the strike prices minus the net spread costs of the trade. Maximum Profit Scenario The INTC $43/$44 bear call spread provides the maximum profit if INTC falls under $43.00 on expiration. The maximum profit would be $43. The breakeven price for INTC is $43.43. At this level, the trade breaks even. The INTC $44/$43 bear put spread provides a maximum profit of $39 if INTC falls below $43 on expiration. The breakeven price level for INTC is at $43.39. Anything above there, and the trades start to lose money. Maximum Loss Scenario The maximum loss for the bear call spread is the difference between the strike prices minus the credit paid out. That results in $1 minus 43 cents for a max loss of $57 if INTC rises above the $44 strike price on expiration. The maximum loss for a bear put spread is the debit you paid for the trade. Since the trade cost $61 to execute, that maximum loss is $61. While both the bear call spread and bull call spread seek to profit on INTC falling under $43 on expiration, the low implied volatility gives the edge to the bear call spread as the trade with a higher max profit of $43 and lower max loss at $57 versus the bear put spread with a lower max profit of $39 and max loss of $61. Watch the Implied Volatility to Select the Better Strategy In this article, we reviewed what is a bear call spread and a bear put spread. While they both seek to profit from falling stock prices, a bearish call spread tends to benefit more with lower implied volatility, while a bearish put spread is preferred during higher implied volatility. While the historical high and low implied volatility levels can be viewed, a basic rule of thumb would be under or over 50% and by how much. The INTC example illustrated implied volatility between 36% to 37% across both calls and puts, which is historically low. This is why the bearish call spread trade results in higher max gains and lower max losses. The implied volatility can be your main indicator to decide which strategy to execute, either a bear call vs bear put spread, when you're feeling bearish on a stock, exchange-traded-fund (ETF) or market. Bear markets are suitable for bear spreads if you're following the downtrend. FAQs Here are some of the most common frequently asked questions. What is the difference between a call spread and a put spread? A call spread provides you with a credit and involves buying a call option at a lower strike price and selling a call option at a higher strike price. A put spread requires you to pay a debit and involves buying a put option at a higher strike price and selling a put option at a lower strike price. Both strategies utilize the same stock and expiration dates and are intended to capitalize on the underlying stock price falling. A bear call spread vs bull put spread use different call and put options for different directions. Are bear call spreads profitable? Bear call spreads can be profitable if the underlying stock closes below the breakeven price level upon expiration. The breakeven price consists of the strike price of the short call at the lower strike plus the net premium credit received. The maximum profit is achieved when the underlying stock closes below the lower strike price of the short call option.
Longest Bear Market in History Plus 7 Other Bear Market Facts 2024-03-21 14:22:00+00:00 - For investors, few terms strike as much fear as "bear market." Like being face-to-face with a predator in the wilderness, a bear market represents a period of decline where prices plummet and pessimism prevails. By the time you're done reading this article, you'll know which is the longest bear market in U.S. history and a few other facts that might help you learn how to approach these types of markets. We've covered everything from understanding a bear market rally and even learning to select your stocks. In the end, you'll have the knowledge you need to safeguard your investments from taking a beating. Get stock market alerts: Sign Up Key Takeaway The longest bear market in U.S. history was the Great Depression bear market, which lasted from 1929 to 1932. The notorious downturn saw the stock market lose 86% of its value as the Dow Jones Industrial Average plunged from 381.17 to 41.22 points. The Great Depression wasn't just the longest bear market in U.S. history and one of the most devastating economic periods worldwide. What is the Longest Bear Market in History? What is the longest bear market in U.S. history? A bear market is defined as a period when stock prices fall by 20% or more from recent highs amid widespread pessimism and negative investor sentiment. And there was no more pessimism than during the Great Depression bear market. As stated earlier, it lasted from 1929 to 1932, coming at the tail end of the Roaring Twenties, a time of prosperity and growth where the stock market swelled to never-before-seen heights until the bubble burst on October 29, 1929, a day known as Black Tuesday. Ad Unstoppable Prosperity Average American has 78% of their Retirement Needs Charles Payne's trusted team of market experts will reveal his 3-Pillar investing strategy that has helped him produce a 76% win rate over the last 8 years! The information revealed at this event could put you back on track to achieving your retirement goals. Just click here to register now for free. The results were devastating. Wealth evaporated rapidly as businesses succumbed, and countless people lost their savings and went bankrupt. Unemployment soared, and despair spread. Multiple factors contributed to its length and severity. A speculative bubble in the 1920s, lax regulatory policies, bank failures and a breakdown in international trade played a part. Investors who had leveraged their investments with borrowed money were hit the hardest, losing everything when they couldn't meet the margin calls. This resulted in a torrent of forced selling and accelerated the market's downward spiral. In less than four years, the GDP fell by more than 25%, marking the deepest economic contraction in modern times. The economy didn't fully recover until over a decade after the outbreak of World War II. Bear Markets in U.S. History The stock market's history is a shifting tale of bulls and bears. Besides the Great Depression, here are some of the other deep and long-lasting break markets: Bear Market Dates Length of Bear Market in Months S&P Decline Percentage Length of Recovery Wall Street Crash of 1929 1929-1932 34 -86.2 Began in 1932, took over 25 years Financial Crisis of 2007-2008 2007-2009 17 -56.8 About 4 years COVID-19 Crash Feb 2020 - Mar 2020 1 -34.0 About 5 months Dot-com Bubble 2000-2002 30 -49.1 About 7 years 1973–1974 Stock Market Crash 1973-1974 21 -48.2 About 21 months 1987 Stock Market Crash 1987 3 -33.5 About 2 years 1968–1970 Bear Market 1968-1970 18 -36.1 About 6 years Early 2000s Recession 2000-2002 30 -49.1 About 7 years Early 1990s Recession 1990-1991 3 -20.4 About 15 months 1980–1982 Recession 1980-1982 21 -27.1 About 5 months 7 Bear Market Facts A bear market is characterized by a prolonged period of falling asset prices, typically 20% or more from recent highs. It's not an overnight occurrence but rather a slow, steady decline that instills fear and skepticism among investors. A weak or stagnant economy, high unemployment rates and falling investor confidence often accompany bear markets. Here are some other facts you might find intriguing: Bear Market with the Longest-Lasting Impact The bear market with the most enduring imprint on the financial landscape was the Great Depression. The period, which spanned from 1929 to 1932, altered the global economy and society, triggering changes we still see reflected in modern financial policies. In the late 1920s, the United States economy was booming, and the stock market reached unprecedented heights. Investors were chasing big returns, and "buying on margin" became common. This allowed them to purchase stocks with borrowed funds. But when reality struck and the stock market crashed in October 1929, those who had bought stocks on margin were hit hardest. Instead of making huge profits, they were left with massive debts. Mass bankruptcies ensued as lenders called in their loans, triggering a sharp increase in unemployment and widespread poverty. The legacy of the Great Depression prompted major changes in financial regulations. The Securities and Exchange Commission (SEC) was established in 1934 to protect investors, maintain fair markets and ease capital formation. Policies were implemented to curb the overly speculative practices that led to the 1929 crash, including limits on buying stocks on margin and more rigorous scrutiny of banking practices. The government also established the Federal Deposit Insurance Corporation (FDIC) to protect depositors from bank failures, a major issue during the Depression era. Fact 1: Bear Markets Don't Last Forever While it's true that bear markets can be severe, as evidenced by the Great Depression, they ultimately don't last forever. In fact, according to historical data from the S&P 500, bear markets have lasted an average of just over a year. This is in contrast to bull markets, which typically extend for multiple years. So, while the downtrend can be painful, it's also temporary. Fact 2: Bear Markets Often Lead to Bull Markets Although it's hard to believe when you're in the thick of a bear market, these periods often set the stage for the next bull market. This is because the low stock prices during a bear market create buying opportunities for investors. Those who dare to invest when prices are low can cash in when the market eventually rebounds. Some of the greatest gains in stock market history have happened shortly after major downturns. Fact 3: They're Not Always Predictable Despite many experts attempting to predict bear markets, they often come as a surprise. Many factors can trigger a bear market, making it difficult to forecast them accurately. Fact 4: Recessions and Bear Markets Often Go Hand in Hand There's often a relationship between bear markets and recessions. As the economy struggles, corporate earnings usually drop, leading to falling stock prices. For instance, the 2008 financial crisis was both a recession and a bear market. Fact 5: Bear Markets Can Occur Without Recessions While bear markets and economic recessions often coincide, one doesn't necessarily cause the other. A bear market can happen in response to an economic slowdown or financial instability without a full-blown recession kicking off. For example, the dot-com bubble bursting in the early 2000s led to a bear market, although a recession didn't immediately follow. So, while bear markets often signal economic trouble ahead, they don't always mean doom and gloom for the broader economy. Fact 6: Global Events Can Trigger Bear Markets Global events like wars or pandemics can give rise to bear markets. For instance, the Oil Price Shock of 1973 led to a severe global recession and bear market. Same with the pandemic-induced economic shutdown in March 2020. However, due to the monetary and fiscal stimulus, they were followed by an equally rapid recovery. Fact 7: Bear Markets Vary in Severity Just as no two bull markets are identical, bear markets vary in severity and length. While some bear markets may last a few months with a sharp but brief price drop, others can persist for years with a steady decline. The Great Depression of the 1930s remains the most severe bear market, with the stock market losing nearly 90% of its value. Strategies for Navigating the Worst Bear Markets Surviving a bear market requires more than just knowing its patterns or causes. It calls for a cool head, strategic planning and, most importantly, patience. Here are some strategies you might want to consider: Diversification To protect your portfolio during a bear market, diversify your holdings. This means spreading your investments across different types of assets such as bonds, stocks, real estate and precious metals. This way, you can help buffer your portfolio against significant losses. Even if one sector takes a hit, others might stay stable or prosper. Investing in Value Stocks Value stocks, or shares in companies undervalued by the market, can be a smart choice during a bear market. These stocks often have lower price-to-earnings ratios and may pay dividends, offering income during lean times. And once the market rebounds, they have the potential for capital gains. Cash Reserves Having cash reserves can be a lifeline during a bear market. It allows you to take advantage of lower prices without selling other investments at a loss. It also provides security, allowing you to meet your day-to-day expenses and weather the storm without liquidating your long-term investments. Deferred Consumption One of the smartest ways to weather a bear market is to limit your spending and increase your savings. Deferred consumption can give you extra cash to invest when prices are low, allowing you to buy more shares for less money. Plus, it helps create a financial cushion if things get worse before they get better. Fixed-Income Securities Invest in fixed-income securities like bonds or certificates of deposit (CDs). These can provide a steady income stream regardless of the market conditions and offer some stability during turbulent times. While they're typically less volatile than stocks, they also usually offer lower returns. Purchasing Put Options Purchasing put options can be another strategy to navigate a bear market. You sell your stocks at a predetermined price within a specific timeframe, providing a way to avoid big losses if the market keeps plummeting. Buying Bear Market Funds Bear market funds, or inverse ETFs, increase in value when the market falls. They’re designed to perform in direct opposition to an index, meaning you can hedge against losses in a down market. However, you must handle them cautiously, as they can result in losses. Embracing the Bear: A Final Word on Market Downturns As investors, there's always a chance of encountering raging bulls and looming bears. Understanding the nature and triggers of bear markets, and their varied severity and length, can help. But knowledge by itself isn't enough. Riding out a bear market calls for foresight, patience and resilience. Diversifying your portfolio is one of the best ways to give yourself a safety net during even the harshest economic climates. FAQs Welcome to the frequently asked questions section. This is where we answer some of your most pressing inquiries about the longest bear markets in U.S. history. How long do bear markets last historically? Traditionally, bear markets have varied in duration. On average, they tend to last around 10 to 20 months. But of course, the financial landscape is ever-changing, and these figures are historical averages, not hard-and-fast rules. How long did the 1973 bear market last? The 1973 bear market, also known as the Oil Crisis bear market, lasted approximately 21 months, from January 1973 to October 1974. It was marked by an energy crisis due to an oil embargo by OPEC, impacting stock prices. It resulted in the S&P 500 dropping about 48% from its peak, making it one of the most severe bear markets in U.S. history.
Micron Is the NVIDIA of Memory Chips: Here’s Why 2024-03-21 14:15:00+00:00 - Key Points Micron's Q2 results were boosted by end-market normalization and the shift to AI-enabled computing. The guidance is also impressive and may be cautious given the trends. Analysts are upgrading the stock and raising their price target, leading the market to new highs. 5 stocks we like better than Micron Technology Micron Technology NASDAQ: MU is perfectly positioned to follow in the footsteps of AI leader NVIDIA NASDAQ: NVDA. Where NVIDIA commands the bulk of data center market share and, by extension, the AI accelerator market, Micron commands a large portion of the memory chip market, which AI also aids. The takeaway is that NVIDIA is leading the first wave of the AI revolution, and Micron is now in a prime position to lead the second. That wave is the embedding and application of AI across the IoT from our PCs to mobile and connected devices. It is a much bigger wave and will sustain growth for a longer period. Get Micron Technology alerts: Sign Up Micron Stock Price Surged 20% Because of NVIDIA-Like Results Analysts expected solid results from Micron because of normalizing market and inventory conditions, but the FQ2 report exceeded all expectations. The rise of AI compounded end-market normalization to drive double-digit growth in all product categories and business segments. Regarding the product categories, DRAM chip sales surged by 53% and were led by a 77% increase in NAND. Regarding business segments, all segments grew at least 28%, led by a 78% gain in Storage, a 70% increase in Mobile, and a 59% gain in Computing. The weakest segment is Embedded at 28%, but it is expected to accelerate over the coming quarters. The market-moving details are the 58% increase in topline revenue, the 875 basis points of outperformance, and the surprise profits. Micron has been working through an inventory glut and reset, posting significant losses over the last year, and was not expected to return to profitability until the 2nd fiscal half. As it is, top-line strength and internal efficiencies led the operating cash flow to grow 4X YOY and for losses to reverse. The $0.42 in adjusted earnings is not only up from last year's loss but exceeded the consensus forecast reported by Marketbeat.com by $0.66. Micron Is Building Business Momentum in 2024 Mircon’s results are impressive enough, but the guidance will keep the stock moving higher. The Q2 results led management to raise guidance for the year by upping the expectation for Q3—the new forecast projects revenue growth at 76% or 1000 basis points above consensus with margin strength. The adjusted earnings are forecast at $0.45, more than double the consensus forecast. Assuming the company continues to build momentum, it should raise guidance again at the end of Q3. The latest estimates for PC demand are only one driver for the business. PC shipments are expected to grow in 2024, with gains centered on the AI market. AI-enabled PC shipments are expected to run near 18% of the market in 2024 and then more than double to 40% in 2025 as the upgrade cycle gains momentum. Analysts Lead Micron to a New All-Time High The analysts are impressed by Micron’s results and guidance and are lifting sentiment and price targets because of it. Marketbeat tracks over a dozen revisions following the release; all include a sentiment upgrade, price target revision, or both. Argus and Fox Advisors upgraded the stock to Buy from Neutral equivalents; the consensus price target is up about 20% in two days, leading the market. The consensus estimate puts Micron trading near $110, which aligns with the post-release action, but most of the new targets are in the $120 to $160 range, with one notable exception. Rosenblatt Securities set the new high target; it is $225 and more than double the current market price. Micron Stock Can Double From Its New High The surge in Micron stock is significant because it sets a new all-time high above the 2000 DotCom market bubble. The move is a pivot above a trading range that could lead it to advance by $95 or more to above $200. The minimum target is near $150, derived by projecting the magnitude of the 2020-2024 trading range above the critical resistance point. Before you consider Micron Technology, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Micron Technology wasn't on the list. While Micron Technology currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here