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Elon Musk says his ketamine use is good for Tesla investors 2024-03-18 19:38:00+00:00 - Elon Musk defended his prescription for ketamine, saying his usage of the drug helps him alleviate a "negative chemical mind state" that benefits investors in Tesla, the electric car maker he leads as CEO. Musk made the comments in an hour-long interview with former CNN host Don Lemon, who posted the sometimes contentious conversation Monday on social media, including on Musk's X (formerly known as Twitter) platform. Tesla didn't immediately respond to a request for comment. Even before the interview was made public, the discussion had garnered attention when Musk abruptly canceled X's contract with Lemon shortly after he interviewed the billionaire. In January, X had announced that Lemon would bring his "unique and honest voice" to the social media company in three 30-minute episodes per week. Lemon's interview with Musk delves into numerous topics, ranging from the entrepreneur's views on race to X's loss of advertisers over his antisemitic comments, with Musk growing increasingly ill-tempered with Lemon over the course of the discussion. Questioned by Lemon about his use of drugs, Musk noted that he has a physician's prescription for ketamine, a "dissociative anesthetic hallucinogen" that was cited as a cause of actor Matthew Perry's death last year, and that he takes it once every other week. Musk had previously disclosed he has a prescription for the drug, writing on X in August that he takes ketamine for when his brain "goes super negative." In the interview with Lemon, Musk defended his use of ketamine by pointing to Tesla's value as a publicly held company, suggesting that taking the drug has helped him lead the automaker. "What matters is execution," Musk said. "Tesla is worth about as much as the rest of the car industry combined, from nothing. From an investor's standpoint, if there is something I'm taking, I should keep taking it." Tesla shares rose 5.8% in Monday morning trading. They've plunged 30% so far this year, compared with a 7.3% gain for the S&P 500 index. The interview ended with testy remarks from Musk over Lemon's questioning of X's free speech policies and the loss of big advertisers. In November, Musk had said fleeing advertisers could "kill the company," but at the same time blasted businesses that were seeking to distance themselves from the social media service. In the Lemon interview, Musk defended his approach, saying X wouldn't censor content at the request of advertisers. "You said if they kill the company, it's done. But doesn't the buck stop with you?" Lemon asked. "Choose your question carefully. There are five minutes left," Musk replied. After Lemon repeated the question, Musk responded, "I acquired X in order to preserve freedom of speech in America, the First Amendment. If that means making less money, so be it." A few seconds later, Musk noted that he was upset at the way Lemon was asking questions, describing it as "not cogent." He also added that advertisers are returning to X. "I feel very optimistic about the future of the X platform," he said.
Joann files for bankruptcy amid consumer pullback, but plans to keep stores open 2024-03-18 19:17:00+00:00 - Joann files for bankruptcy Joann files for bankruptcy 00:19 Fabric and crafts retailer Joann declared bankruptcy on Monday amid spending cutbacks from consumers and higher operating costs. The retail chain said it plans to keep its 800-plus stores open while it works through the restructuring process. Hudson, Ohio-based Joann, which filed for Chapter 11 bankruptcy, reported between $1 billion and $10 billion in debt. In court documents filed Monday, the retailer blamed higher costs from shipping overseas products, as well as waning consumer demand. As part of its bankruptcy, Joann said it has received about $132 million in new financing and expects to reduce its balance sheet's funded debt by about $505 million. The financing is "a significant step forward" to help Joann continue operating its stores, Scott Sekella, Joann's chief financial officer said in a statement. The filing marks the latest in a series of major retailers that have filed for bankruptcy in recent years, including GNC, J.C. Penney and Party City. Brick-and-mortar retailers have struggled as Americans have increasingly shifted their spending to online rivals such as Amazon.com. In Joann's case, the company was buoyed in the early days of the pandemic as the shutdown spurred some consumers to take up crafts and other projects. But during the past two years, Joann's sales have tumbled, with the company blaming consumer cutbacks due to inflation and other economic challenges. "On the revenue side, sales slowed as COVID-19 policies were repealed or reduced, demand for fabric and mask-related products abated, hobbyists spent less time crafting indoors, and the federal government terminated pandemic-related stimulus programs," Joann said in court documents. At the same time, Joann was walloped by higher costs after China hiked tariffs on imports, an issue that occurred when the company was also spending a lot of money remodeling its stores. Rising ocean freight costs also inflated its inventory costs by more than $150 million between its 2021 to 2023 fiscal years, it added. "While these conditions affected the retail sector broadly, Joann's heavy reliance on imported goods meant these conditions caused, and continue to cause, outsized impacts on the company," Joann said in court documents. Joann has been headed toward bankruptcy for quite a while, analyst Neil Saunders of GlobalData said in a statement Monday. Aside from its rising debt, Joann has struggled to turn a profit and has lost some of its customer base to rivals, Saunders said. "Weakening store standards and declining customer service levels, partly because of staffing cuts, have made stores less desirable," he said. "And a desire for lower prices has driven some shoppers to alternatives like Hobby Lobby." As part of the bankruptcy plan, Joann said it plans to convert back into a private company. The company went public in March 2021. The company, which was founded back in 1943, previously went private in 2011 — when it was purchased by equity firm Leonard Green & Partners. Joann reported $2.2 billion in profit in 2023. The company said, as of Monday, that it employs about 18,210 people with roughly 16,500 working at store locations. Another 262 work at Joann's distribution center in Hudson. The Associated Press contributed to this report.
Battered by hurricanes and tired of rebuilding, 90% of population has left this coastal town 2024-03-18 19:04:00+00:00 - NASA estimates that Louisiana has lost almost 750 square miles of its coastal wetlands since 1984. In a report published in February, researchers predicted that three quarters of Louisiana’s wetlands could be underwater by 2070. In many U.S. coastal cities, sea level rise is exacerbated by land that is slowly sinking due to fossil fuel and water extraction. By 2050, the sinking phenomenon could put over 500,000 extra people at risk of significant flooding. A stormy upbringing Anna Dupont, 21, one of the few young people left in Cameron Parish, loves to listen to her parents’ stories about old Cameron. Anna DuPont, 21, is one of the few young people left living in Cameron after a series of devastating hurricanes. Michael Gemelli / NBC News Before Hurricane Rita, the community was vibrant and tightknit. The town held big events like crawfish boils and barbecues, and Cameron residents took pride in their high school football team. “If I had a time machine, I would go back to Cameron before 2005 to see what it was like,” she said. “They always talk about how great it was.” Dupont grew up fishing and bird-watching in the vast wetlands surrounding her old house. Her friends, whom she had known since kindergarten, used to come over and hang out after school. Sometimes they would get burgers before basketball games at her favorite spot — T-Boy’s Cajun Grill, a nearby restaurant that’s now an empty lot. Dupont calls Cameron ground zero for climate change. Before she graduated high school, the storms had already destroyed her home twice. Hurricane Laura made landfall in her senior year of high school, forcing Dupont and her family to evacuate. Dupont recalls getting lost when they returned to Cameron Parish — there were no street signs or buildings left as landmarks. For months after Laura, Dupont and her family lived without power in several camper trailers on her property. Some of her friends stayed with her, many left town. Though Dupont’s home was eventually rebuilt, most of her friends and their families who lost their homes ended up moving away for good. “I’ll just be driving and I’ll look around and see all the concrete slabs where houses used to be, where my friends used to live,” Dupont said. “This feeling of loneliness, it just takes a toll on you after a while. Because you know that they’re not coming back. You’re stuck here without them.” Despite her happy childhood, Dupont watched her friends and classmates who grew up in unstable homes muddle through their youths. Many of her peers and their families grappled with mental health issues, and some used drugs and alcohol to cope with loss and grief shaped by the hurricanes. “It seemed like after Hurricane Rita, everyone just lost hope,” Dupont said. “And whenever you lose hope, I mean, the devil is knocking at your door just waiting for you to fall into his grasp.” The majority of Cameron Parish residents left after Rita in 2005, but some families rebuilt because they did not want to leave Cameron, Dupont said. More people left after Hurricane Ike three years later, and the final straw for many of Dupont’s neighbors was Hurricane Laura. “Of course, parents are going to get into fights of ‘Should we stay or should we go?’” Dupont said. “Should we keep living here and just have to rebuild every five years?” A lifeline For the people still living in Cameron, the planned expansion proposed by Venture Global LNG is a mixed blessing. The project, a massive export terminal termed CP2 LNG, was slated for completion in 2026, with construction beginning in the spring of last year.
Apple may hire Google to build Gemini AI engine into next-generation iPhone 2024-03-18 17:01:00+00:00 - The next batch of Apple iPhones could feature an artificial intelligence upgrade that comes from search engine giant Google. Apple is exploring a deal with Google that would allow Google to build its Gemini AI engine into Apple's iPhones, Bloomberg reported on Monday. Apple and Google have not confirmed a deal. Neither company immediately responded to a request for comment Monday. Wall Street analysts said the potential deal would help both companies in different ways. "What matters here is that Apple may receive or retain some payment from Google for the privilege, especially if it helps Google keep more search revenue," analysts at Melius Research said in an investors' note. "For Google, it would be a reputational win versus Microsoft and OpenAI, after a series of missteps in launching reliable AI products." But talks between Apple and Google don't necessarily mean a deal is coming. Bloomberg reported that Apple has also spoken to Microsoft's OpenAI about using its service. Google and Microsoft have been in a race against each other for dominance over generative AI — which took the world by storm in 2023 with the introduction of OpenAI's ChatGPT. The technology has since captured the attention of businesses and users alike, and has already begun to reshape work and entertainment, raising concerns from lawmakers and tech companies alike over AI's rapidly evolving impact on society itself. For now, tech giants Google and Microsoft are trying to get the upper hand on the market, something which a partnership with Apple could be key to achieving. Analysts said Apple's talks with Google are an attempt by the Cupertino, California-based company to beef up its upcoming iOS 18, ahead of its new products event scheduled for June. If finalized, an Apple-Google deal would give Apple access to Google's Gemini AI app, Bloomberg reported, citing anonymous sources. "We believe the company is looking to upgrade Siri, augment the App Store for AI developers and foster edge processing on its devices for faster, secure experiences," Melius Research analysts said. But Google's Gemini has hit a rough patch since it was rebranded last month. The search giant in February suspended its Gemini artificial intelligence chatbot from generating images after it was discovered the bot was creating historical depictions featuring "inaccuracies." Examples included depictions of Nazi soldiers as Black and Asian and popes as female, for which the company apologized. Dan Ives, senior equity research analyst at Wedbush Securities, said the impetus for the potential deal boils down to Apple hoping to bolster iPhone sales. "For Apple, this will give them the foundation and technology blueprint to double down on AI features currently being developed within Apple Park to make sure that iPhone 16 will be a potential game changer iPhone release around AI functionality," Ives said.
Elon Musk suggests his prescription ketamine use is good for investors 2024-03-18 15:47:00+00:00 - In a new interview, Elon Musk said prescription ketamine has been helpful in treating his occasional depressive episodes and suggested that taking the drug has been beneficial for investors in his companies. Musk, speaking with former CNN anchor Don Lemon in an interview that was posted online Monday, claimed that he takes a “small amount once every other week” — sometimes less frequently — to treat what he described as “chemical tides” that can cause his depression. “Ketamine is helpful for getting one out of a negative frame of mind,” the Tesla and SpaceX chief executive told Lemon. Musk was asked by Lemon whether ketamine could “get in the way” of his government contracts and his standing on Wall Street. Musk said no, then echoed language he has used in the past to explain his drug use. “From the standpoint of Wall Street, what matters is execution,” the technology mogul said. “Are you building value for investors?” He then went on to tout Tesla’s valuation and sales. “From an investor standpoint, he said, “if there is something I’m taking, I should keep taking it.” Musk added that he originally mentioned his prescription ketamine use on X “because I thought, maybe this is something that could help other people.” The video of the exchange was posted five days after Lemon announced that Musk had canceled his deal for a new talk show on X just hours after a “testy” interview at Tesla headquarters in Austin, Texas. X’s verified corporate account confirmed that the company had decided it would not “enter into a commercial partnership” with Lemon’s show, but that the former CNN anchor was still welcome to publish his content on the social media service. Lemon was fired from CNN last April. X said in January that it had made a deal with him as part of what the company billed as a push to expand video offerings. The platform also teamed up with former Rep. Tulsi Gabbard, D-Hawaii, and sports radio host Jim Rome. Musk’s use of ketamine was first reported by The Wall Street Journal. In one article on the topic, the newspaper reported that some Tesla and SpaceX executives were concerned about the billionaire tycoon’s use of drugs. Lemon asked Musk whether he ever “abuses” ketamine, which the billionaire said he is taking under a doctor’s supervision. Musk replied: “I don’t think so. If you use too much ketamine, you can’t really get work done, and I have a lot of work.” Musk’s comments about ketamine are notable, in part, because he has previously cast aspersions on other drugs that are used to treat depression. In a tweet in April 2022, for example, Musk said he believes that the prescription antidepressant Wellbutrin should be “taken off the market.” In response to that post, health care professionals defended the drug’s effectiveness and safety. In recent years, ketamine — a powerful anesthetic — has drawn more attention as a potential treatment for people seeking alternative therapies for depression, anxiety and other conditions. The drug was recently linked to the death of “Friends” actor Matthew Perry, who died of the “acute effects of ketamine,” according to an autopsy report. In a short introduction to the Musk interview, Lemon said that he did not know exactly why Musk had decided to scrap their deal. “I challenge you, Elon, to watch the whole interview and tell the world why this isn’t what you claim you want on X,” Lemon said, alluding to Musk’s stated desire to turn X into an arena for free speech. Lemon also posted the first episode of “The Don Lemon Show” on YouTube, and said that he plans to release future installments on platforms such as Spotify, iHeartRadio and “just about any place you stream content.” In a post on X last week, Musk said that Lemon “lacked authenticity” and that “his approach was basically just ‘CNN, but on social media.’” Musk's interview with Lemon was contentious at times. Musk appeared to bristle when Lemon first brought up ketamine, saying: "It's pretty private to ask somebody about a medical prescription." The interview touched on other hot-button topics, including Musk's recent meeting with former President Donald Trump and the proliferation of hate speech on X, which Musk acquired in October 2022 when the platform was still known as Twitter. In a follow-up interview with NBC News’ Chloe Melas, Lemon described Musk’s demeanor during the interview as “a little cold,” adding that he seemed to become increasingly “uncomfortable” as it went along. He said “The Don Lemon Show” would air three days a week and tackle “whatever’s in the zeitgeist.” He and his team are looking for new media partners, but he did not provide specifics on those conversations. He added that he expects X to live up to its end of their deal. But if the company doesn’t, he said, “then of course we’ll have to take legal action, but I’m not sure we’re at that point yet.”
2 Deep Value, High Yield Stocks With a Double-Digit Upside 2024-03-18 15:15:00+00:00 - Key Points Verizon trades at a deep discount to the S&P 500 while yielding more than 3X the distribution; its stock price is on track for a reversal. Whirlpool is taking steps to improve cash flow and the capital return outlook; analyst sentiment has the market at rock bottom and ready to rebound. An outlook for a return to growth could lead these stocks higher over the next two to three years. 5 stocks we like better than Whirlpool Value and yield are where you find them, and you will find them with Verizon CommunicationsNYSE: VZ and Whirlpool NYSE: WHR. These stocks trade at discounted valuations relative to the broad market, offer value relative to historical norms, and pay yields well above the average dividend-paying stock. Whirlpool’s reliable payment is the lowest-yielding in this group, about 6.65%, backed up by solid cash flow and efforts to improve operational quality. Today’s takeaway is that these stocks also have improving analyst support and the potential for double-digit upside. With a pivot back to growth in the forecast, these stocks could sustain multi-year rallies as value-improving efforts gain traction. Get Whirlpool alerts: Sign Up Verizon is on the Cusp of a Major Market Reversal Verizon’s results, outlook and capital returns have its market on the cusp of a significant reversal. The price action over the last eighteen months has this market at a bottom and forming a Head & Shoulders Reversal Pattern supported by analysts' sentiment. Analysts have been lifting their sentiment ratings and price targets over the past twelve months, raising the sentiment rating to Moderate Buy from Hold and stabilizing the price target. The telecom stock yields about 6.75%, trading at less than half the valuation of the average S&P 500 company. The consensus target reported by Marketbeat.com is down YOY but up 500 basis points in the last quarter. At $44, it is more than 10% above the current action and led higher by recent revisions. Numerous revisions after the Q4 earnings release have the market for this stock trading in the range of $45 to $50, putting it at new multi-year highs. In this scenario, the market will confirm a reversal when it breaks above $42.50, opening the door to a $12 to $15 increase in the price action. The sentiment and price action drivers include renewed strength in the consumer business, improved free cash flow, debt reduction, and capital returns. Wireless outperformed in Q4, up 3.2%, as consumer markets returned to growth. Debt reduction left the net-debt-to-adjusted EBITDA down ten bps YOY to 2.6X; additional improvement is expected. The long-term outlook includes marginal top-line growth and incremental earnings improvement, so dividend growth is also expected. The company has already increased payments for nineteen years; a twentieth is expected later this year. Whirlpool’s High-Yield Dividend is Not a Red Flag Whirlpool has an equally high dividend compared to Verizon and is in a similarly good position for its share price to rise. Like Verizon’s market, Whirlpool’s share price trended lower over the last two years but hit rock bottom and is ready to drift higher. Rock bottom is marked by the technical action and the outlook, which is tepid but includes plans to improve cash flow, capital returns, and shareholder value. The issues plaguing WHR today are lingering debt and weak earnings relative to long-term targets. The company acknowledges that the payout ratio is above target but is committed to sustaining payments; it expects the 45% payout ratio to fall over time and is comfortable with trends. Debt is due to the InSinkErator acquisition, which should pay for itself over time. Efforts to alter the ratios and improve growth include selling 25% of its stake in an Indian appliance business, paying $1 billion of debt this year, and plans to improve margin in the US. US margin is forecast to grow more than 300 basis points to 10% by 2026. Analysts' sentiment is improving for Whirlpool and leading the market into a reversal. The sentiment is up to Hold from Reduce with one recent initiation at Buy, and the consensus price target is rising. The consensus target is up 300 basis points following the release, reversing a downtrend that has been in play for over a year. The consensus target is $122, which is significant because it is near the one-year high and at a level that could lead to a more substantial gain over the coming years. Before you consider Whirlpool, 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 Whirlpool wasn't on the list. While Whirlpool currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Are We in a Bear Market? Here are the Signs 2024-03-18 14:59:00+00:00 - Despite the S&P 500 notching new all-time highs in March, many investors remain hesitant following the bear market doldrums of 2022. Major indices had several fake breakouts during the decline, so you might wonder, "Are we still in a bear market today?" Get stock market alerts: Sign Up This article will define bear markets and examine how they affect stocks and investor psychology. We'll also look over a few warning signs that often precede drawdowns. Key Takeaway A bear market is an extended market decline of at least 20%, usually measured with the S&P 500 as a proxy for American stocks. Bear markets tend to last less than a year, but the average drawdown is about 35%, and investors should have a plan for when they occur. Are We in a Bear Market? Bear markets are unavoidable in investing, but there's little reason to fear or panic about them. Bear markets are a natural part of the market cycle and often "clean out" excessive frothiness and speculation. But are we currently in a bear market? No, the most recent bear market in the U.S. stock market officially ended when it reached new all-time highs in January 2024. Using the SPDR S&P 500 ETF Trust (NYSE: SPY) as a proxy for the stock market, you can see how the drawdown only lasted until winter 2022, but the recovery to new highs didn't complete until earlier this year. Despite a 26% gain in 2023, investors who bought stocks at the December 2021 peak didn't break even for two years. Two years might not seem long in the grand scheme, but an investor dealing with uncertainty can feel like speed running an entire decade in 24 months. Long periods of sideways price action are often the most brutal for investors as bear market rallies taunt the end of the drawdown, only to fade out and continue trending downward. Many investors believed the bear market was ending following a summer rally in 2022, but the trend remained bearish, and the rally fizzled as summer faded. Ad The Bull Report The AI Bottleneck No One is Talking About Renewable energy is growing at an impressive speed - but not fast enough. This could be one of the greatest periods for the nuclear industry ever. Click here to see who's preparing to meet these needs Extended bear markets can be tricky, but they're merely one flavor of decline. The phrase "stocks take the stairs up and the elevator down" was never more accurate than in 2020, when the COVID-19 pandemic shocked markets and sent the S&P 500 tumbling 35% quickly. Investors saw major market indices erase years of gains in less than six weeks as panicked participants pummeled the sell button on their brokerage apps. However, this bear market was over quickly due to unprecedented monetary and fiscal policy — just five months after the S&P 500 bottomed in late March 2020. Bear markets are often associated with broad market drawdowns, but asset classes and individual securities can also experience bear markets. Japanese stocks famously spent nearly 40 years in a bear market following their 1990s real estate bubble, and the Nikkei stock index didn't reclaim all-time highs until 2024. Bear Market Indicators Are we in a bear market right now? Here are a few indicators investors should monitor market conditions more closely. Credit Spreads Not to be confused with the options trading strategy, credit spreads are often a warning sign that a bear market is on the horizon. Credit spreads are simply the difference in yield between two fixed-income assets of equal duration. Corporate and government bond spreads are often used for economic analysis to determine market health. If two-year corporate bond yields accelerated compared to two-year Treasuries, that widening spread could indicate that private sector lending is becoming riskier. Yield Curve If you're asking, "Are we in a bear or bull market?" the yield curve is a data point to consider. The yield curve is the short- and long-term bond slope, measured with Treasuries. Long-term debt usually yields more than short-term debt, but the yield curve becomes inverted when short-term yields rise above the long-term rate. An inverted yield curve is one of the oldest and most accurate bear market indicators, but investors must still consider other factors in their analysis. Economic Data Plenty of bear markets happen without a full-blown economic recession, but data from the broader economy and consumer sentiment can hint at future market direction. For example, rising credit card delinquencies and late loan payments could be signs that consumers are weakening or could be seasonal noise or variance. However, economic data is still a puzzle when determining market resilience. Fundamental and Technical Signals Finally, reasonable old-fashioned due diligence can help detect stocks in a bear market. Corporate earnings are always a significant factor in stock analysis, but technical tools like moving averages can also help investors prep for potential downturns. For example, if a major market index like SPY sees its 50-day moving average cross under the 200-day moving average, this is interpreted as a bearish signal. Use MarketBeat’s stock screener to look for companies based on specific fundamental or technical data. Understanding Market Cycles The market cycle is the natural ebb and flow of finance and why investors get rewarded for taking risk in the first place. Are we in a bear market now? If so, how would you position your portfolio in the future? Investors must understand the cyclical nature of markets to keep emotions in check. Selling stocks after a decline can result in a permanent loss of wealth, but buying at all-time highs can also create jittery investors (despite evidence that more all-time highs often follow all-time highs). Having rules for your portfolio, like profit targets, loss limits and asset allocation weights can help offset bear market turbulence. Advantages of a Bear Market Bear markets aren't always bad news, especially if you're a young investor with a long time horizon. The average bear market lasts just over nine months, while the average bull market lasts between two and three years. When bear markets occur, long-term investors can use cheaper stock prices and buffer their portfolios. Additionally, bear markets are often necessary. They clear out market froth and overexuberance, forcing companies to concentrate on profits and earnings. Bear markets frequently end speculative manias and sniff out mismanaged companies. Plus, pump-and-dump scammers usually exit the market when deep declines occur. Advantages of a Bull Market What are the benefits of a bull market? Profits! While economists are fond of saying that the stock market is not the economy, it's rare for markets to decline during economic booms, and bull markets usually signal increasing profits and investor optimism. Bull markets can be lengthy and impressive, like the post-GFC recovery when the S&P 500 posted annual gains for 6 consecutive years. Bull markets mean growth and accelerating stock prices, which is good for companies, investors, institutions and retirement savers. However, bull markets can also lead to excessive speculation and risky behavior, often setting the stage for the next bear market. The Psychological Impact of Bear Market Speculation Investing during a bear market can be brutal on your psyche, especially ones that drag out like the 2022 drawdown. But bear markets are inevitable, and investors should prepare themselves. Raging bull markets inevitably fade, especially when speculation and irrationality send stock prices soaring past reasonable levels. Financial media is full of headlines like, “Are we in a bull or bear market?” but these are short-term stories aimed at active investors. Plus, stirring up a little fear and uncertainty has never been bad for ratings, so the media tends to slant negatively regarding finance and markets. Loss aversion and herd mentality often drive market reactions during bear markets, and these are difficult emotions to overcome. Loss aversion has been ingrained into human behavior for thousands of years, so losing money makes people anxious! Anxious investors also tend to outsource critical thinking, leading to further losses as more of the herd heads to the exit. Debunking Bear Market Myths Are we in a bear market today? Here are a few common misconceptions about bear markets to put your mind at ease: Bear markets always lead to recessions. False. Bear markets occur far more frequently than recessions, and not every bear market is a signal that the economy is contracting. For example, markets declined 20% in 2018 despite real GDP growth of 2.9%. Bear markets last a long time. The average bear market only lasts about nine months, compared to more than two years for the average bull market. Markets spend much more time going up than going down. Bear markets lead to catastrophic losses. Calamities like the Great Depression, the dot com bubble and the 2008 global financial crisis left long-lasting scars on investor psyches. Still, most bear markets don't get names because they resolve themselves in an orderly fashion. A 20% to 30% loss isn't uncommon, and investors should be prepared for the occasional terrible year. Strategies for Navigating Uncertain Markets Are we in a new bull market, or are we in a bear market rally? If this question keeps you up at night, here are some tips to prevent making rash decisions in the face of uncertainty. Dollar-cost averaging: Buying stocks at a set monthly or quarterly interval is a timeless strategy. By dollar cost averaging, investors can resist trying to time the market while still benefiting from cheap stocks. Buying stocks at a set monthly or quarterly interval is a timeless strategy. By dollar cost averaging, investors can resist trying to time the market while still benefiting from cheap stocks. Sticking to predetermined rules and goals: A few guidelines can help your portfolio management. For example, if you have a portfolio of 10 stocks, you might set a rule to sell shares of any stock that grows to more than 20% of the portfolio's weight. Or maybe you set a 10% loss limit to cut losers quickly. Rules replace emotions when constructing a portfolio. A few guidelines can help your portfolio management. For example, if you have a portfolio of 10 stocks, you might set a rule to sell shares of any stock that grows to more than 20% of the portfolio's weight. Or maybe you set a 10% loss limit to cut losers quickly. Rules replace emotions when constructing a portfolio. Stop checking prices: Go outside and touch some grass! Bear markets don't just harm your portfolio; they can harm your mindset and mood. If you find yourself grinding your teeth or clenching your fists over market action, stop checking stock prices and step away from the screen. An experienced investor shouldn't let a sudden price decline influence their plans and decisions. Bear Markets Can Be Painful but Short-Lived No one who lived through the Great Depression would say not to worry about bear markets. Bear markets erase wealth and can lead to more painful scenarios like recessions. But there's a silver lining — bear markets are necessary evils that eliminate froth and restore equilibrium. They're also unavoidable, and investors should know how to react when they arrive. A rules-based investing system can help navigate drawdowns without causing stress and indecision. FAQs Are we currently in a bull or bear market? Here are a few critical facts about bear markets and their economic influence. How long does a bear market last? On average, a bear market lasts 289 days or just under 10 months. However, no two bear markets are identical; some are quick, like the 2020 COVID bear market, and some drag out for months, like the 2022 slowdown. Are we currently in a bear or bull market? After a significant drawdown in 2022, the S&P 500 gained more than 26% in 2023. As of this writing, the major US stock indices have breached their 2021 levels and hover close to all-time highs, signaling that a new bull market is underway.
Biden speaks with Netanyahu amid escalating tensions in U.S.-Israel, warns against Rafah invasion 2024-03-18 14:19:00+00:00 - WASHINGTON — During a critical phone call Monday, President Joe Biden warned Israeli Prime Minister Benjamin Netanyahu against Israel's carrying out a planned military operation in Rafah, the White House said. "Our position is that Hamas should not be allowed a safe haven in Rafah or anywhere else, but a major ground operation there would be a mistake," national security adviser Jake Sullivan said at the White House briefing where he outlined the leaders' conversation. "It would lead to more innocent civilian deaths, worsen the already dire humanitarian crisis, deepen the anarchy in Gaza and further isolate Israel internationally," Sullivan added. He said more than a million people have taken refuge in Rafah, a city in the southwestern Gaza Strip along Egypt's border, after having moved away from Gaza City and Khan Younis. "They have nowhere else to go," Sullivan said. "Israel has not presented us or the world with a plan for how or where they would safely move those civilians, let alone feed and house them and ensure access to basic things like sanitation." Sullivan noted that Rafah is a primary entry point for humanitarian assistance entering Gaza from Egypt and Israel, and he warned that "an invasion would shut that down or at least put it at great risk." During the call, Biden asked Netanyahu to send to Washington “a senior interagency team composed of military, intelligence and humanitarian officials” in the coming days to hear U.S. concerns about an invasion of Rafah, Sullivan said. He confirmed that Netanyahu agreed to the invitation. Notably, Sullivan said U.S. officials now expect that Israel wouldn't invade Rafah until that conversation takes place. The meeting will be an opportunity for the U.S. "to lay out an alternative approach that would target key Hamas elements in Rafah and secure the Egypt-Gaza border without a major ground invasion," he added. Sullivan rejected questions about whether an Israeli invasion of Rafah would be a "red line" for Biden, as the president had indicated in a recent interview on MSNBC. Biden and Netanyahu, who last spoke to each other over a month ago, on Feb. 15, also discussed the prospects of a weekslong cease-fire agreement between Israel and Hamas that would involve the release of hostages who have been held in Gaza since the Oct. 7 attack. "We would look to build on that cease-fire into something more enduring and use the space created by a cessation of hostilities to surge humanitarian assistance at a vital moment," Sullivan said. "So far, this deal has been more elusive than we would have hoped." Sullivan said that while Israel has made "significant progress" battling Hamas in its military operations in Gaza, the effect on innocent Palestinians has been devastating. He said more civilians have died in this conflict than in all wars in Gaza combined. "The president has repeatedly made the point that continuing military operations need to be connected to a clear strategic end game," Sullivan said. "The president told the prime minister again today that we share the goal of defeating Hamas, but we just believe you need a coherent and sustainable strategy to make that happen." A White House readout of the call reiterated Sullivan’s description of the discussion. The White House said that Biden had also “stressed the urgent need to significantly increase the flow of lifesaving aid reaching those in need throughout Gaza, with special emphasis on the north.” The White House is considering how to respond if the Israeli government ignores the administration’s warnings not to launch a ground invasion in Rafah without a credible plan for Palestinian civilians. Last week, Netanyahu’s office said that he had approved plans for a ground offensive there and that the military was “preparing for the operational side and for the evacuation of the population.” Monday’s call was the 20th between Biden and Netanyahu since Hamas’ brutal assault on Israel on Oct. 7. It also marks the longest gap between calls — 32 days. Previously, the longest the two had gone without speaking was 26 days, from Dec. 23 to Jan. 19. Biden’s relationship with Netanyahu has been on shaky ground for months as he faces pressure from the progressive wing of the Democratic Party over U.S. support for Israel as tens of thousands of Palestinians have died in Gaza. Biden said in a recent interview with MSNBC’s Jonathan Capehart that an invasion of Rafah by the Israel Defense Forces would be a “red line” for him, though he said he would never leave Israel’s side. “There’s no red line where I would cut off all weapons so they don’t have the Iron Dome to protect them. But there’s red lines where if he crosses them ... he cannot have 30,000 more Palestinians dead,” he said, referring to Netanyahu. Biden didn’t elaborate on any potential consequences if Israel does invade Rafah. “There’s other ways to deal, to get to, to deal with the trauma caused by Hamas,” he said. Last week, Senate Majority Leader Chuck Schumer, D-N.Y., the highest-ranking Jewish U.S. official, said in a speech on the Senate floor that Netanyahu has “lost his way” and called for new elections to replace him and his far-right governing coalition. It was met with criticism from Republicans and some Democrats. Biden said that it was a “good speech” and that Schumer “expressed a serious concern shared not only by him but by many Americans.” Netanyahu rejected Schumer’s proposal in an interview Sunday on CNN’s “State of the Union.” “I think what he said is totally inappropriate,” Netanyahu said. “It’s inappropriate to go to a sister democracy and try to replace the elected leadership there. That’s something that Israel, the Israeli public does on its own, and we’re not a banana republic.”
2 Dollar Stores Taking Different Paths to Profitability 2024-03-18 13:27:00+00:00 - Key Points Dollar Tree operates under the Dollar Tree and Family Dollar brands, which sell items for $1.25, but has been growing its higher price of $3 and $5 items to offer more product diversity. Dollar Tree will close nearly 1,000 stores in 2024. Dollar General sells some $1 products but it's mostly a higher-priced discount chain aiming to be the big little box store in rural towns with 20,000 people or less. 5 stocks we like better than Dollar Tree In uncertain macroeconomic climates, conscious consumers try to stretch their dollars at dollar stores. These microenvironments should be strong drivers for these discount retail sector stocks. However, a rift has formed between two of the largest dollar store franchises, where they are taking different paths on the same coin. Here are two dollar stores with different outcomes on their paths to profitability. Get Dollar Tree alerts: Sign Up Dollar Tree Stock Outlook Dollar Tree Inc. (NASDAQ DLTR) operates two brands in the dollar store segment, Dollar Tree and Family Dollar. These stores sell household products, food, candy, frozen foods, seasonal items, greeting cards, toys and party items. Most items at Dollar Tree cost around $1.25 or more. The average store ranges in size from 8,000 to 12,000 square feet with a minimum of 70 feet of frontage. Migration to Dollar or More Stores The dollar doesn't seem to buy what it used to these days. To keep margins from collapsing, Dollar Tree has signaled that it will be increasing its prices to different dollar increments. The $3 and $5 center-store merchandise is now available at nearly 5,000 Dollar Tree stores. The $3, $4, and $5 frozen refrigerated items are available are over 6,500 Dollar Tree stores. Swing and a Miss for Dollar Tree On March 13, 2024, Dollar Tree reported EPS of $2.55, missing consensus analyst estimates for $2.67 by 12 cents. Diluted loss per share was $7.85. Revenues rose 11.9% YoY to $8.63 billion, falling short of the $8.66 billion consensus analyst estimates. Enterprise same-store net sales rose 3%, driven by a 4.6% increase in traffic and partially offset by a 1.5% decrease in average tickets. The results include a $594.4 million charge for portfolio optimization, a $950 million trade name intangible asset impairment charge and a $1.07 billion goodwill impairment charge. Store Closings Identified The Dollar Tree segment comps rose 6.3% YoY, driven by a 7.1% increase in traffic offset by a 0.7% decline in average tickets. Familiar Dollar comps fell 1.2% YoY, driven by a 0.7% increase in traffic, partially offset by a 2% drop in average tickets. The company identified 600 Family Dollar stores for closure in the first half of 2024 and an additional 370 stores as their leases expire. The company opened 219 new stores in the quarter, for a total of 641 new store openings in 2023. Get AI-powered insights on MarketBeat. Lowered Guidance Dollar Tree lowered guidance for its fiscal Q1 2024 EPS to $1.33 to $1.48 versus $1.71 consensus analyst estimates. Revenues are expected between $7.6 billion to $7.9 billion versus $7.68 billion consensus estimates. Guidance is based on low-to-mid single-digit increase in same-store sales for the enterprise and Dollar Tree segment and approximately flat same-store sales growth in the Family dollar segment. For full-year 2024, The company sees EPS between $6.70 to $7.70 versus $7.04 consensus estimates. Full-year 2024 revenues are expected to be $31 billion to $32 billion versus $31.72 consensus estimates. CEO Comments Dollar Tree CEO Rick Dreiling commented, "While we are still in the early stages of our transformation journey, I am proud of what our team accomplished in 2023 and see a long runway of growth ahead of us. As we look forward to 2024, we are accelerating our multi-price rollout at Dollar Tree and taking decisive action to improve profitability and unlock value at Family Dollar." Dollar Tree analyst ratings and price targets are at MarketBeat. The MarketBeat stock screener can help you find Dollar Tree’s peers and competitor stocks. Daily Ascending Triangle Breakdown The daily candlestick chart on DLTR illustrates an Ascending triangle breakdown pattern. The ascending trendline commenced at $102.77 on October 5, 2023. DLTR rose to the flat-top upper trendline resistance at $148.69 into earnings. However, the earnings miss and lowered guidance resulted in a gap down through the ascending triangle. The 14% gap down formed at $133.37 as shares continued to sell off afterward. The daily relative strength index fell sharply through the 30-band but may be attempting to coil a bounce. Pullback support levels are at $118.60, $111.91, $102.77 and $94.01. Dollar General Stock Outlook Dollar General Co. NYSE: DG operates over 17,000 stores across 46 states in the country. While Dollar General is a discount retailer, the products and goods are more priced above $1, usually falling into the $5 or more category. Because of the high price points, Dollar General is able to provide more merchandise, including groceries, fruits, deli meats and dairy products. In fact, Dollar General functions as a tiny box store averaging 7,400 square feet located in small and rural towns with a population of 20,000 or less. It's a big fish in a tiny pond model. Get AI-powered insights on MarketBeat. A Better Quarter than Dollar Tree Dollar General reported Q4 2023 EPS of $1.83, beating analyst expectations of $1.73 by 10 cents. Revenues fell 3.4% YoY to $9.86 billion, beating $9.77 billion consensus expectations. Fourth-quarter same-store sales rose 0.7% YoY, and fiscal year same-store sales rose 0.2%. The company returned to positive same-store sales after two prior quarters of negative same-store sales. Customer traffic rose 4%, offset by a decline in average tickets from a few items per basket. This underscores the sentiment that consumers are still reeling from inflation, causing trade downs in the stores. The Board of Directors declared a cash dividend of 59 cents per share. Mixed Guidance for Dollar General Dollar General provided downside guidance for Q1 2024 EPS of $1.50 to $1.60 versus $1.88 consensus analyst estimates. Sale store sales are expected to rise 1.5% to 2%. Full-year 2024 EPS is expected between $6.80 to $7.75 versus $7.42 consensus estimates. Full-year revenues are expected to rise 6% to 6.7% or $41 billion to $41.3 billion versus $40.27 billion. Same-store sales growth is expected between 2% to 2.7%. Expansion Plans In 2023, Dollar General executed over 3,000 real estate projects, including 987 new stores, 129 relocations, and 2,007 remodels. This momentum is expected to continue into 2024 as the company plans on nearly 2,385 projects, which include 800 new store openings, 1,500 remodels and 85 relocations. Stores planned to open include 30 top-shelf stores and up to 15 stores in Mexico. CEO Insights Dollar General Todd Vasos noted that the revenue decrease was primarily driven by the lapping sales of $678 million from the 53rd week in 2022. Its net sales performance was highlighted by accelerating its market share growth in units and dollars of consumable product sales. Fresh produce is available in 5,400 stores, and up to 1,500 additional stores are expected to carry it in 2024. Vasos commented, “As we embark on our 85th year in business, and with store locations within five miles of approximately 75% of the U.S. population, we are uniquely positioned as a growth company that is privileged to be here for what matters for millions of customers across the country.” Dollar General analyst ratings and price targets are at MarketBeat. The MarketBeat stock screener can help you find Dollar General’s peers and competitor stocks. Daily Rising Channel Breakdown The daily candlestick chart on DG illustrates a potential rising channel breakdown. The rising channel is comprised of parallel trendlines formed off the swing low at $130.37 on February 14, 2024. The breakout attempt as the upper resistance channel line initially attempted to break out on a 6% price gap, only to be faded on the gap and crap reaction that caused shares to end down 5%. The daily RSI is attempting to bounce off the 50-band. Pullback support levels are at $145.38, $141.04, $137.68 and $130.37. → The AI Bottleneck No One is Talking About (From The Bull Report) (Ad) Before you consider Dollar Tree, 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 Dollar Tree wasn't on the list. While Dollar Tree currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Semis, Nvidia Set for Big Moves as GTC Conference Kicks Off 2024-03-18 13:10:00+00:00 - Key Points Nvidia CEO Jensen Huang is poised to take the stage at the Company's GTC conference, which is renowned for unveiling groundbreaking advancements. Despite a recent sector pullback, the conference could offer major sector and technological developments, with Nvidia driving AI and computing innovation. NVDA has surged 77% year-to-date, while the semiconductor sector ETF SMH has gained nearly 25%, showcasing robust performance in the sector. 5 stocks we like better than VanEck Semiconductor ETF Nvidia NASDAQ: NVDA is not just on a hot streak; it's setting records. With shares skyrocketing 241% over the past year and a staggering 77% year-to-date, the company has become an indispensable force in the tech world. Its CEO, Jensen Huang, is a sought-after figure, and companies worldwide seek its graphics cards like rare treasures. The anticipation is palpable as Huang prepares to take the stage at Nvidia's annual GTC conference in San Jose, California. This event has historically been a platform for groundbreaking announcements, and this year seems poised to be no different. Get SMH alerts: Sign Up In 2022, Nvidia unveiled its Hopper graphics architecture and H100 graphics processing unit, which quickly became the go-to choice for AI model training and deployment. Now, all eyes are on the expected debut of their successors, codenamed Blackwell Architecture and B100 card. These are rumored to offer even greater performance, especially for running advanced models like OpenAI's GPT-3. But hardware is not the only thing grabbing attention. Nvidia is also expected to showcase the latest advancements in its CUDA software, adding another layer of excitement to the conference. With over 300 exhibitors and esteemed speakers from industry giants like OpenAI, Meta, and Microsoft, the GTC conference promises to be a melting pot of innovation and expertise. However, amidst this frenzy, the semiconductor sector has seen a slight pullback, raising questions about the timing of potential investments. As the popular semiconductor ETF VanEck Semiconductor NASDAQ: SMH, which includes Nvidia among its top holdings, retraces from its recent highs, investors wonder if now is the right moment to capitalize on the sector's resilience. In this dynamic landscape, Nvidia is set to once again redefine the future of AI and computing. The GTC conference could unveil groundbreaking technologies and provide valuable insights into the trajectory of the broader semiconductor market. So, as the conference kicks off, could now be the opportune time to buy the sector's recent pullback and its top holding, Nvidia, for a leg higher? Semiconductor ETF is 9% off its Recent Highs The VanEck Semiconductor ETF NASDAQ: SMH is a market-cap-weighted index of 25 of the largest US-listed semiconductor companies. NVDA, TSM, and AVGO are among its top three holdings. The ETF surged almost 75% over the previous year and is close to 25% higher year-to-date. More recently, however, after going vertical and achieving new highs, the sector ETF has pulled back close to 9% between a converging 5-day and 20-day SMA. As the sector-wide catalyst, the GTC conference kicks off, now might be the opportune time to re-enter the sector ETF following its recent pullback. Should SMH reclaim its declining 5-day SMA, near $221, a short-term break of its downtrend would be confirmed, indicating a start of a new uptrend and leg higher. It will also be vital to keep tabs on its top three holdings, mentioned above, as any significant directional moves in either of them could heavily influence the overall direction and sentiment of the sector ETF. Nvidia Coils Ahead of its Conference Following its impressive start to the year, where shares of the semiconductor giant surged to new heights, the stock has retraced almost 10% from its all-time highs. Over the previous week, shares of NVDA were essentially unchanged as the stock consolidated near its flattening 5-day SMA in a tight range. Last week’s action resulted in an intriguing setup and opportunity ahead of its major event. With the stock extremely coiled, it looks set to make a major directional move as the GTC Conference kicks off. Investors and traders will closely watch two potential inflection points in the stock. $900 acts as resistance for an upside breakout. For a potential sell-the-news event, which seems unlikely given the hype and importance of the event, $860 is a significant area of support. Before you consider VanEck Semiconductor 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 VanEck Semiconductor ETF wasn't on the list. While VanEck Semiconductor ETF currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
3 Stocks About to Boom on Unusual Call Option Volume 2024-03-18 12:46:00+00:00 - Key Points It looks like options traders are back on the block, and they picked three stocks with a thesis that goes around higher oil prices. With a different narrative for your portfolio, you can strike a balance from speculation all the way to a near sure bet. Wall Street analysts and institutional buyers confirm the writing on the wall. 5 stocks we like better than Daqo New Energy Most investors focus on the volume profile of the stocks they analyze, forgetting that there is another primary market that can act as a leading indicator. Options often give you a glimpse of the direction the market expects a stock to take. You are best served by watching the activity in those markets. By watching out for unusual options activity in certain stocks, you can spot these opportunities before the bulk of the market even realizes what’s happening. This is why a highly cyclical play like Transocean Ltd. NYSE: RIG, a longer-term macro play like Daqo New Energy Corp. NYSE: DQ, and the most stable of them all, The Coca-Cola Company NYSE: KO should be on your watchlist today. Get Daqo New Energy alerts: Sign Up There are more than a few reasons why these stocks have attracted the attention of these traders today, reasons that you too can follow along to squeeze out a decent return. Final Bets on China’s Comeback Daqo New Energy rose by 76% after its quarterly earnings announcement. Traders see the initial price action as maybe the start of an even more significant trend. Still unsure of the timing, they chose to go for call options instead of buying the stock outright. China is an exciting story today, with mega investors like Michael Burry (yes, the guy who called the 2008 financial crisis) and even Ray Dalio buying into the region. While these whales can’t take risks on smaller companies like Daqo, you don’t have that limitation. Oil prices broke above their hard ceiling of $80 a barrel, analysts at The Goldman Sachs Group Inc. NYSE: GS think it could go as high as $100 a barrel this year. This would make alternative energy more attractive, which is where Daqo comes into play. Because it makes polysilicon, the main ingredient in the chips and instruments that make solar panels work, it would be the first stock in line to get paid. Riding on the China story and an energy preference shift on expensive oil, traders think this one could pop soon. In fact, Wall Street analysts think Daqo stock could rally by 45% in their $38.6 a share price target. Now you know one of the reasons behind this view and why options traders are stampeding into the stock. Transocean is First in Line Speaking of oil going higher, Transocean is critical in supporting energy giants like Exxon Mobil Co. NYSE: XOM to start producing and marketing more expensive oil. Because it sells and leases rig equipment, among other things, Transocean is first in line to get paid on this oil pop. Figure that the oil price rose in the quarter after Transocean's last earnings announcement, making it highly likely to produce an earnings beat in the company's following quarterly results. That's a reasonable thesis to support, so options traders felt confident pouring into the name ahead of the announcement. After rallying by as much as 28% in the past month, this stock still has a long way to go. Wall Street analysts think that earnings per share (EPS) can grow by as much as 370% in the next 12 months, a projection that drove price targets higher to $7.9 a share, calling for a rally of 37% from today’s prices. Two major players have been buying the stock lately, both the Vanguard Group and Fisher Asset Management and their stake in the stock has increased this month. Vanguard’s 6.4% increase represented a transaction to the tune of $27.8 million, while Fisher’s 11% shows a $180,000 bet to go along. Coca-Cola Ties it All With a Bow Keeping up with the oil story, higher prices can’t possibly be reasonable for the U.S. dollar. A declining dollar against other currencies can make big international firms like Coca-Cola more attractive. Not only that but being a $260 billion behemoth allows Coca-Cola to hedge away any increased shipping and production costs that may result from more expensive oil prices. All this sounds like the perfect, less speculative opportunity to make up for what’s happening. Double-digit upside is hard to find in these big companies, but now that the writing is on the wall (or so do options traders think), analysts at Citigroup Inc. NYSE: C see a price target of up to $68 a share, which is roughly 15% higher from where the stock trades today. Being the low-beta name in this group, Coca-Cola makes for the cheaper and less risky alternative to play today’s market interest in the options market. Before you consider Daqo New Energy, 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 Daqo New Energy wasn't on the list. While Daqo New Energy currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Hollywood Actors Are Leaping Into Video Games 2024-03-18 09:00:22+00:00 - A stream of actors who built their careers in Hollywood are making their digital presence felt in video games, a once stigmatized medium that is increasingly seen as a unique storytelling platform with the ability to reach large audiences. Some are voice acting, transferring skills they may have honed in animated movies or TV shows, while others are contributing their likenesses through advanced motion-capture technology that can replicate furrowed brows and crinkled cheeks. Last year, Cameron Monaghan led Star Wars Jedi: Survivor, Megan Fox portrayed a character in Mortal Kombat 1, and Idris Elba and Keanu Reeves provided the backbone of Cyberpunk 2077: Phantom Liberty. In this month’s remake of the 1992 horror game Alone in the Dark, both Jodie Comer, who won an Emmy for “Killing Eve” and a Tony for “Prima Facie,” and David Harbour, known for his work on “Stranger Things,” are making their video game debuts. They are among the group of actors meeting younger generations where they already are.
'I'm Sure I'm Going To Die Penniless' — Almost Half Of Gen X, The 'Lost Generation,' Has More Credit Card Debt Than Savings — Even the 'Broke' Millennials' Are Faring Better 2024-03-15 03:30:00+00:00 - Generation X, often referred to as the “Lost Generation,” finds itself in a precarious financial situation, wedged between the money struggles of millennials and Gen Z on one side and the relative stability of baby boomers on the other. According to a recent Bankrate survey, 47% of Gen Xers (ages 44-59) have more credit card debt than emergency savings. This statistic paints a picture of Gen X falling behind all generations, with millennials (ages 28-43) faring only slightly better at 46% having more debt than savings, and Gen Z (ages 18-27) at 32%. On the other end of the spectrum, baby boomers (ages 60-78) appear to be in a more comfortable position, with 68% having higher emergency savings than credit card debt — the highest percentage among all generations surveyed. Don't Miss: The average American couple has saved this much money for retirement — How do you compare ? For many first-time buyers, a house is about 3 to 5 times your household annual income – Are you making enough? The survey data highlights the financial tightrope that Gen X is walking, sandwiched between the debt burdens of millennials and Gen Z, often referred to as the “broke” generations, and the comparatively well-prepared boomers. This Lost Generation moniker takes on new significance as Gen Xers struggle to build a financial safety net amid competing demands of supporting their children and aging parents. Greg McBride, chief financial analyst at Bankrate, points out the strain many households are facing, stating, “Financing purchases at 20% interest rates is a sign of the financial strain millions of households are feeling.” The survey also revealed that Gen Xers were the most likely generation to report having less emergency savings than they did a year ago, with 34% admitting to a decline in their financial cushion. Pew Research Center’s examination of Generation X highlights their significant role as a bridge between the notably different baby boomers and millennials. Despite their critical economic and social position, Gen Xers have often been overlooked in discussions about demographic, social and political changes. Their financial outlook is notably more pessimistic compared to other generations, partly because of the economic stresses associated with middle age. Story continues Trending: If the average American household is a millionaire, why do people feel so broke? This bleak reality was echoed on Reddit, which posted an article about Gen X having the largest wealth gap. In the comments, one user wrote, “I feel like I did everything they told us to do and be successful, and I’m sure I’m going to die penniless.” Another lamented, “I myself have been a casualty of multiple economic downturns, notably the 2008 recession ... and, well, it’s not looking good for me.” A third user pointed out, “There’s no safety net under capitalism, but millennials are not the enemy. They’re allies.” As the generational divide widens, Gen X finds itself at a crossroads, caught between the financial challenges of their children’s generations and the looming retirement prospects of their parents’ cohort. Navigating this middle ground will require a concerted effort to prioritize both debt reduction and consistent savings — a balancing act that many Gen Xers are still struggling to master. it is never too late (or too early) to start working toward financial stability. Consulting with a financial adviser can play a pivotal role in helping people across all generations to assess their current financial situation, set realistic goals and create a plan to achieve these goals. Financial advisers can offer tailored advice on a range of strategies to reduce debt, increase savings and plan for retirement, ensuring that individuals are taking proactive steps toward financial health. Whether it’s exploring options to consolidate debt to lower interest rates, setting up an emergency fund to avoid future debts or investing wisely for long-term growth, a financial adviser can provide guidance tailored to each person’s unique circumstances. Read Next: *This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions. Jeannine Mancini has written about personal finance and investment for the past 13 years in a variety of publications including Zacks, The Nest and eHow. She is not a licensed financial adviser, and the content herein is for information purposes only and is not, and does not constitute or intend to constitute, investment advice or any investment service. While Mancini believes the information contained herein is reliable and derived from reliable sources, there is no representation, warranty or undertaking, stated or implied, as to the accuracy or completeness of the information. "ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now! Get the latest stock analysis from Benzinga? This article 'I'm Sure I'm Going To Die Penniless' — Almost Half Of Gen X, The 'Lost Generation,' Has More Credit Card Debt Than Savings — Even the 'Broke' Millennials' Are Faring Better originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Lennar calls affordability 'stretched' as cracks in US housing market appear 2024-03-15 02:50:00+00:00 - Lennar’s (LEN) CEO Stuart Miller warned Thursday that affordability remains a concern for homebuyers as mortgage rates hover near 7%. Miller said on the company's first quarter earnings call that affordability is "stretched," noting that "we are definitely seeing a little bit more credit card debt and personal debt from the customer showing up in their applications." He noted, "We have seen some delinquencies in some of that debt." His comments came after Lennar on Wednesday reported revenue that missed analyst estimates for its fiscal first quarter ended Feb. 29. Lennar stock tumbled roughly 6% Thursday on the news, dragging down D.R. Horton (DHI) and Toll Brothers (TOL), which were both down 3%. The SPDR S&P Homebuilders ETF (XHB) slipped nearly 2%. US household debt and delinquency rates have been rising. Total household debt rose by $212 billion to hit $17.5 trillion in the fourth quarter of 2023, according to data from the Federal Reserve Bank of New York. The challenges of higher mortgage rates and home prices over the last year have plagued buyers trying to jump into the market. Mortgage rates have largely been on the rise this year, peaking around 7% in mid-February. The average rate on the 30-year fixed mortgage fell to 6.74% Thursday from 6.88% the week prior, according to Freddie Mac. “What we're seeing is when you look at [our customers] in particular, more of the [customers] are having a higher percentage relating to debt to total income,” Bruce Gross, chief executive officer of Lennar Financial Services, told analysts on the earnings call Thursday. “There's more debt to pay off, and that's something new that we noticed this quarter. We often work with the buyers, and we're able to work through a lot of the conditions. But that one point is something that we've seen [change from] last quarter,” Gross added. While investors expect the Federal Reserve to cut interest rates this year, the central bank has indicated it will move with caution and the timeline still remains unclear. Story continues High rates have prompted builders to offer a variety of incentives from mortgage rate buydowns to price reductions. Lennar cut its average sales price to $413,000 during the quarter, an 8% drop from last year. Wedbush analyst Jay McCanless said the lower average closing price contributed to total revenues falling below consensus expectations in the latest quarter. Signs are posted in front of homes at the Lennar Bridgeway home development on Dec. 15, 2021, in Newark, Calif. (Justin Sullivan/Getty Images) (Justin Sullivan via Getty Images) To be sure, Lennar noted on its call that homebuyer demand remained strong thanks to a chronic inventory shortage. New orders increased 28% to 18,176 homes in the quarter, higher than the company's estimate of 17,500 to 18,000. The builder reaffirmed its plans to close 80,000 homes for the year. Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv. For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here Read the latest financial and business news from Yahoo Finance
Stock market today: Futures gain ahead of final inflation data before the Fed's March meeting 2024-03-15 00:46:00+00:00 - US futures were trending up ahead of Thursday's opening bell. PPI and retail sales numbers are due later in the final batch of data before next week's Fed meeting. Brent Crude oil continued climbing after surpassing a five-week high of $84 a barrel. US stock futures ticked higher Thursday morning as investors await the last round of inflation data before the Fed's March meeting. S&P 500 futures were up 0.33% shortly before 6 a.m. ET. The index lost some momentum on Wednesday but has remained near record highs. Nasdaq 100 futures climbed 0.5% and Dow Jones Industrial Average futures gained 0.32%. The US Dollar Index, which measures the value of the dollar against six currencies, was almost flat. Brent crude was 0.76% higher, surpassing the $84 a barrel mark. Oil had its biggest gain in about five weeks after US stockpiles shrunk in a sign of heightened demand. Prices have also been driven up by a fresh Ukrainian drone strike on a Russian refinery this week and the ongoing Middle East conflict. Wall Street is awaiting another batch of key inflation data on Thursday with the release of the producer price index (PPI), which measures wholesale inflation, as well as retail sales numbers. PPI is expected to show a steady increase for the month, while retail sales, which account for nearly half of household consumption, are expected to rebound after an unexpected dip at the start of the year. The data will be the last economic indicator for analysts before the Fed's next policy meeting starting on Tuesday. Tuesday's CPI data had little impact on markets, but given consumer spending is the biggest driver of the economy, better-than-expected results could encourage optimism surrounding a June interest rate cut. Dan Coatsworth, investment analyst at AJ Bell, warned in a morning note that the rising oil prices could renew inflationary pressures despite favorable economic data. "A higher oil price has negative implications for business and consumers and is exactly what could make central banks sit on their hands if there are knock-on effects for the cost of energy, transport, and goods," he said. Companies due to report first-quarter earnings later include Dollar General and Adobe. Read the original article on Business Insider
TikTok ban would hit many users where it hurts — their pocketbook 2024-03-14 22:56:00+00:00 - Delyanne Barros has a lot riding on whether TikTok survives in the U.S. The 41-year-old personal finance and money coach, who built a financial consulting company from the ground up, said a ban of the popular social media app could wipe out as much as 30% of her business overnight. Barros, who goes by @delyannethemoneycoach on TikTok, isn't sure if she'd even be running her own business today were it not for the Chinese-owned app, which faces a potential ban if a bill passed by the House on Wednesday eventually makes it into law. "I started my business in January 2020 and went full in on TikTok," Barros told CBS MoneyWatch. "That's where a lot of my content started going viral, and it catapulted my business. It was an integral part of how I grew it in the beginning," TikTok doesn't pay Barros directly; rather, it's how upwards of 30% of her clients find her and ultimately purchase her investing course. The rest of her clients have found her through other social media apps, internet searches and word of mouth. She also makes money through brand-sponsored posts on social media platforms including TikTok. "A ban would result in me losing a major part of my business. I would definitely feel a hit," she said. Barros is hardly alone. Many of TikTok's 170 million monthly active U.S. users rely on the app to generate secondary and even primary income streams. That includes 7 million small businesses that use the platform to drive growth, according to a joint report from Oxford Economics and TikTok released Wednesday. Thirty-nine percent of small businesses say that access to TikTok is critical to their businesses' existence, while another 39% say TikTok has allowed them to generate supplemental or principal incomes through their activity on the app, according to the report. Sixty-nine percent of small businesses say TikTok has led to increased sales in the past year. Tori Dunlap, founder of a money and career platform Her First $100K, said TikTok "was absolutely fundamental" to the growth of her business, securing a book deal and launching a podcast. Her viral videos have helped her amass 2.4 million followers on TikTok over four years. Her popularity on the platform has also led to lucrative brand partnerships and new clients for her coaching services. "TikTok is the top of the funnel in terms of our customer journey. It's how people discover us," Dunlap told CBS MoneyWatch. "Incredibly unfair" Sophie Beren, founder and CEO of The Conversationalist, an educational platform that empowers young people to have conversations and create community, said that for creators who rely wholly or in part on TikTok for income, a ban would be "devastating." "They are struggling with a potential ban because we are living in a world where it's impossible to have one traditional path for income. The traditional path for young people doesn't guarantee economic success or stability like it used to," Beren told CBS MoneyWatch. She added that the possibility of taking away an income stream from the creator community feels "incredibly unfair." Tiffany Yu, founder of Diversability, a for-profit advocacy group and community provider for people with disabilities, is also afraid of what a potential ban would mean for her business and the people it serves and employs. Yu's advocacy group makes money selling memberships and through corporate sponsorships. She credits TikTok with growing her reach large enough to secure major brand partnerships, including deals with Hilton and Dove. All told, the deals acquired through TikTok account for more than 50% of Diversability's revenue. For Yu, a ban could mean going back to her bootstrapping roots, when she made ends meet by renting part of her apartment and selling used furniture, in the early days of running Diversability. "I would like to not have to go back there, but if that's what we had to, then we would do it," she said. Safer to diversify, than rely on a single platform Barros, the money coach, said that while a TikTok ban could hurt her business, it wouldn't destroy it. That's because she has never allowed her business to depend entirely on a single platform, whose fate she never had any control over. "Like any business, you need to diversify, and I use Instagram and Threads and all the other platforms, too," she said. But TikTok offers a unique advantage for people like herself, Barros said, because its algorithm is more effective at feeding audiences tailored content that they're likely to engage with, she believes. Still, she's prepared for a potential ban on TikTok and any other social media platform for that matter. "I use other platforms but I have also been building an email list that I own," she said. "I feel secure that my business will continue to grow and thrive. If TikTok were to be shut down I would inevitable feel the impact, but it's not something that would wipe out my business."
Cable TV providers will have to show total cost of subscriptions, FCC says 2024-03-14 22:47:00+00:00 - New rules for cable and satellite-TV providers means the companies need to clearly show total costs for video subscriptions, including extraneous fees that can add up to triple digits a year, the Federal Communications Commission announced on Thursday. "Charges and fees for video programming provided by cable and DBS (direct broadcast satellite) providers are often obscured in misleading promotional materials and bills, which causes significant and costly confusion for consumers," the FCC stated. The rule adopted by the FCC mandates that cable and satellite companies clearly state the total cost, including fees for regional sports programming as a single line item. According to advocacy groups Consumer Reports and Public Knowledge, broadcast TV, regional sports and set-top box rentals mean an additional $37 to the average monthly bill, or up to a third of the total. The companies behind the bills argued against the FCC rule, with the NCTA, the Internet & Television Association calling the requirement technically challenging as regional fees vary, making it expensive to target individual markets. The FCC in November voted to mandate broadband providers clearly state the cost, speed and data allowances provided by their internet services.
TikTok could draw a range of bidders, but deal would face major hurdles 2024-03-14 22:39:00+00:00 - Experts weigh in on possible outcomes for users if Senate bans TikTok in U.S. If TikTok winds up on the auction block — and that's a big if — former Treasury Secretary Steven Mnuchin is interested. Mnuchin, who served under former President Donald Trump, told CNBC's Squawk Box on Thursday that he plans to put assemble an investment group to buy TikTok. "This should be owned by U.S. businesses. There's no way that the Chinese would ever let a U.S. company own something like this in China," Mnuchin said. Mnuchin's remarks came after the House voted 352-65 to a bill that would ban the popular social media app in the U.S. if its China-based owner, ByteDance, declines to sell its stake. He offered no details about who might join the investor group or about TikTok's possible valuation. After the House's unusual display of bipartisanship, the measure is now headed to the Senate, where it faces an uncertain fate. President Joe Biden has already said he will sign the measure into law if it reaches his desk. Should the measure be enacted, Bytedance would have six months to fully divest its U.S. TikTok operations to another non-Chinese entity. Barring such a transaction, it would be illegal for app store operators like Apple and Google to make it available. Who might want to buy TikTok? While in the White House, former President Donald Trump in 2020 ordered TikTok be sold to to an American company, with Walmart and Oracle interested in acquiring it. But that deal was ultimately shelved as the Biden administration continued the prior administration's focus on the potential national security risks posed by Chinese technology companies. After initially leading the charge to ban TikTok, Trump now opposes the bill to force a sale, with the presidential candidate arguing the measure would empower Facebook, which he has bashed for its alleged role in his 2020 election loss. Should TikTok be made available for sale, a number of financial and technology companies would likely be interested despite what's certain to be an "eye-popping" price tag, WedBush Securities analysts said in a report. "Private equity with a potential consortium will look at TikTok, and a number of tech stalwarts will also likely focus on TikTok including Microsoft, Apple, Oracle, and/or joint bids from a handful of Big Tech players depending on the structure and price tag," they said. Other possible bidders include former Activision Blizzard CEO Bobby Kotick, who has floated the idea to potential partners, according to the Wall Street Journal, which pegged any price tag be in the hundreds of billions of dollars. ByteDance was valued at $220 billion at its last funding round in 2023, according to CNBC, citing Pitchbook data. TikTok had global revenue last year of $36.9 billion, according to an October estimate by eMarketer. The research firm forecast those revenues to reach $46.6 billion and $56 billion in 2024 and 2025, respectively. Beyond the significant price tag for TikTok and whatever the political impetus for a deal, the regulatory climate in Washington, D.C., could hinder a sale to a U.S. buyer, analysts said. Amazon, Google and Meta all currently face lawsuits by U.S. Justice Department for antitrust violations, making it less likely that any of the technology giants would purchase an app with 170 million American users. Apple and Microsoft would likely face similar hurdles. ByteDance could also seek to spin TikTok off in an initial public offering. But disentangling the platform's algorithms — the beating heart for any social media firm — from its corporate parent would be complex and involve intense scrutiny from U.S. regulators. Long march to a deal Meanwhile, the political road for TikTok remains uncertain despite the political heat. Wedbush puts the odds of TikTok getting banned in the U.S. at only 25%. A Senate bill requiring ByteDance to cut ties with TikTok would require 60 votes to pass — a tall order even given a measure of bipartisan support for such legislation. It would also require Senate Majority Leader Chuck Schumer to bring the bill to a vote. If the New York Democrat thinks a vote to ban TikTok could harm the prospects for his party in tight races, Schumer could decide against bringing the bill for a vote, Wall Street analysts said. Even assuming a ban becomes law, legal challenges from ByteDance would also likely delay the process. "We have no way to handicap what happens if this case where to ultimately reach the Supreme Court, with ByteDance/TikTok arguing free speech, while the U.S. government argues national security concerns," said LightShed Ventures analyst Richard Greenfield. Perhaps the biggest obstacle to a TikTok deal would be getting the Chinese government to cooperate, given that Beijing has said it would staunchly opposed a forced sale. "China and Bytedance will never allow the source code to be sold to a U.S. tech company in our view, which makes this all a spiderweb issue for any potential strategic buyer," Wedbush said in its report. "There is still a long and uncertain road ahead to actually forcing ByteDance to divest TikTok or be banned from the U.S. Importantly, we do not expect ByteDance to accept a TikTok divesture," Greenfield said.
WeightWatchers CEO just sent an internal memo to employees as stock crashes, amid debt concerns, Oprah exit 2024-03-14 22:37:00+00:00 - While the news on Feb. 28, concurrent with its earnings, that Oprah Winfrey was planning to leave the company's board and donate all of her shares in the company to a museum's endowment had led to a 20%-plus drop on earnings day, shares stabilized later that week. But since then WW shares have suffered heavy selling, dropping to a new 52-week low on Thursday. Over the past one-month period, shares are down 58 percent. The stock, due to its debt load and short interest, as well as the general anxiety about the impact of the new weight loss drugs, is subject to heightened volatility. In the memo, Sistani told employees she wanted "to take a moment to address some of the breathless media coverage." The memo , shared with CNBC, comes after heavy selling in WW shares that has seen the stock market value of the iconic weight loss company fall to under $150 million amid concerns about the company's debt load and its core weight loss business growth prospects at a time of new blockbuster drugs like Novo Nordisk 's Ozempic and Wegovy, and Eli Lilly 's Zepbound. WeightWatchers CEO Sima Sistani has sent an internal memo to employees attempting to reassure them that the financial position of the company is solid and its new clinical business related to the threat of GLP-1 weight loss drugs is growing faster than expected. Concerns about the company's significant debt load have made new headlines in recent weeks, however, the issue is not a new one and much of the debt is not due for years. "These headlines are often just speculation," Sistani wrote to employees. "We have strong liquidity and are not in a cash crunch. We have very attractive, long-term debt agreements, with no maturities due until 2028 and 2029." Guggenheim Partners analysts wrote in a note on Thursday that they are "unconcerned" about WW's ability to service its debt, which includes roughly $945 million outstanding on a non-amortizing term loan that matures in April of 2028, and $500 million of notes due in April of 2029. The company ended 2023 with approximately $109 million in cash, according to Guggenheim. At its current market cap, the near $1.5 billion in debt is roughly 10 times the publicly traded value of the company's equity. "Despite the high leverage, we believe WW will have no problem covering interest payments on the debt, and will ultimately be in a much better position to recapitalize the company in 2-3 years after the Clinical business scales. Moreover, we think any worries about a recapitalization or default this year are overblown," the Guggenheim analysts wrote. Guggenheim maintains a buy rating on the shares and $12 price target. WW shares closed at $1.87 on Thursday. Last year, WW acquired Sequence, since rebranded as WeightWatchers Clinic, as a way to confront the threat of the GLP-1 drugs to its legacy business by having the ability to connect patients with clinicians who can prescribe the drugs and combine the drugs with a broader weight-loss program. The FDA mandates the drugs be used in conjunction with broader weight-loss diet and exercise methods. Sistani said in the note to employees that since it reported on Feb. 28 and provided guidance for the year, its GLP-1 related clinicals business has grown quickly. "In fact, we are on track to beat our Q1 guidance for Clinic subscribers," she wrote. While any faster growth for the clinicals business is a plus, several analysts who cover the stock have told CNBC that the core weight-loss management business has to grow for investors to turn bullish on the stock, given the size of the legacy business relative to the new clinicals effort. "WW is in a tough spot," said one analyst consulted after the internal memo was shared, but who could not comment for attribution due to concerns about fair disclosure of the material information. "Sequence [the clinicals business now named WeightWatchers Clinic] should be the future. That's the GLP-1 playbook, but at this point it's still very small. If they are talking about upside to that small business in and of itself, it's not meaningful. The bigger issue is the legacy business continues to suffer and the company is overly levered." When WW reported results on Feb. 28, the company said it had ended Q4 with 3.8 million subscribers, including 67,000 for clinical subscriptions, but its guidance for the full year 2024 was total subscriber growth in the range of 3.8 million to 4.0 million, including between 140,000 and 160,000 subscribers to WeightWatchers Clinic. "Turning around and totally transforming a business is not for the faint of heart!" Sistani wrote to employees. "As we stay focused on delivering for our members, the stock price will take care of itself," she stated. "I know clickbait stories and their predictable, albeit temporary, market impact don't feel great. But take pride, because we will prove the naysayers wrong." Oprah Winfrey said in her statement announcing her intentions to leave the WW board this upcoming May and donate all of her shares to the National Museum of African American History and Culture that she would continue to work with the company to de-stigmatize obesity and focus on weight loss as management of a chronic condition (Oprah told People she started using weight loss drugs in December). Next Monday, Winfrey is scheduled to appear in a national primetime weight-loss special on ABC. Guggenheim said in its note on Thursday "we would not be surprised if the special contains positive commentary about pairing GLP-1 drug therapies along with a clinically-guided behavior modification program." It noted that WW was among companies from the weight loss industry involved in the TV event. Sistani was named to the inaugural CNBC Changemakers list, revealed in February.
Epic Marvel Adventure And More Games Land On PlayStation Plus: Don't Miss Out - Sony Group (NYSE:SONY) 2024-03-14 22:26:00+00:00 - Loading... Loading... Sony Group Corp. SONY unveiled its lineup of games set to join the PlayStation Plus service in the latter half of March, offering a diverse array of titles to subscribers. The new games will be available for Premium and Extra subscribers and are set to launch on March 19. From iconic franchises like Resident Evil and Marvel's Midnight Suns to nostalgic favorites such as Jak and Daxter, the selection caters to a wide range of gaming preferences. See Also: Call Of Duty: Mobile Maps Removed — Don't Panic! They'll Return, New Content Soon Premium and Extra: Marvel’s Midnight Suns NBA 2K24 Kobe Bryant Edition Resident Evil 3 Lego DC Super-Villains Mystic Pillar: Remastered Blood Bowl 3 Super Neptunia RPG Dragon Ball Z: Kakarot (PS5) Premium Only: JoJo’s Bizarre Adventure: All-Star Battle R Phoenix Wright: Ace Attorney Trilogy Jak and Daxter: The Lost Frontier Cool Boarders Read Next: Xbox Game Pass March Lineup: Dive Into MLB The Show 24, Warhammer 40K And More Image courtesy from PlayStation.