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Stock market news today: Tech stocks drubbed as Nasdaq sinks 2.7%, worst day since 2022 2024-07-18 05:54:00+00:00 - US stocks were mixed Wednesday, with the Nasdaq dropping sharply as techs came under dual pressure from worries about US export curbs on China and Donald Trump's stance on Taiwan. The blue-chip Dow, meanwhile, quietly closed at another record high. The tech-heavy Nasdaq Composite (^IXIC) sank more than 2.7%, marking the index's worst single-day decline since December 2022. The S&P 500 (^GSPC) fell more than 1.3%. Meanwhile, the Dow Jones Industrial Average (^DJI) rose about 0.6% to close at 41,198, the index's first close above 41,000 on record. United Healthcare (UNH) shares rose more than 4%, extending a rally from Tuesday, while Johnson & Johnson (JNJ) popped more than 3% to lead the Dow higher. Tech stocks pulled back as concerns about risks to bigger names eclipse the high hopes for interest-rate cuts that had fueled a rally in recent days. Those worries weighed on heavyweights whose AI-fueled gains have helped propel the S&P 500 to fresh record highs this year, with chipmaker Nvidia (NVDA) down more than 6%. The Biden administration has told allies it's looking at imposing tougher restrictions on companies still making advanced chip technology available to China despite existing export curbs, Bloomberg reported. Shares of ASML (ASML, ASML.AS), cited as a potential target, dropped over 12% even after the Dutch chip gear maker posted solid quarterly earnings. Meanwhile, the Republican nominee Trump questioned US defense support for Taiwan in a Bloomberg interview, suggesting the island claimed by China should pay for US protection. Chipmaker TSMC's (TSM) shares fell nearly 8%. LIVE COVERAGE IS OVER 11 updates A tech sell off drags down the S&P 500 The S&P 500 (^GSPC) closed lower by more than 1% on Wednesday, largely due to a sell-off in tech stocks. The Information Technology sector (XLK) declined nearly 4%, its worst one-day performance since December 2022. The massive decline in Technology consumed what was an otherwise OK day inside the index and the broadening trade as a whole, with eight sectors outperforming the S&P 500 itself, including five closing in positive territory. This serves as a reminder for index investors entering what some think could be a continuing rotation out of the technology-led rally of the past year into other cyclical areas of the market that haven't participated as much in the S&P 500's surge higher. As this happens, even if other sectors catch a bid, the index itself may not keep setting new record highs given the technology sector makes up nearly one-third of the S&P 500. "We could see a little bit of this churn where some stocks are passing the baton to other stocks," Ritholtz Wealth Management chief market strategist Callie Cox told Yahoo Finance on Monday. "Tech stocks are passing the baton to other stocks. Sure, we may not see prices move up as quickly as they have. But this is the kind of movement that strengthens the foundation of a bull. It means that this rally can be stronger and live longer eventually." Earnings are just fine thus far It's the early days of second quarter earnings, but at first blush S&P 500 (^GSPC) companies are once again surprising Wall Street to the upside. Evercore ISI's Julian Emanuel noted Wednesday morning that 27 S&P 500 companies have reported second quarter results. Sales growth is up 5.4% for the quarter compared to last year while earnings are growing 16.7% year over year. Both metrics are coming in better than Wall Street expected. This, Emanuel noted, puts the index on pace to grow earnings 9.6% year over year in the second quarter, slightly above the consensus projection for just under 9% growth. 1 sign of the Trump trade taking place in markets Over the past week, markets have been pricing in the prospect of former President Donald Trump winning the 2024 presidential election. This could mean various things for various parts of the market, but Yardeni Research chief market strategist Eric Wallerstein highlighted one bet he's seen taking place over the past week: looser regulation on mergers and acquisitions. Wallerstein posted a chart showing a recent surge in shares of Evercore (EVR) and Lazard (LAZ), which are top players in the M&A industry. Both stocks pulled back slightly on Wednesday but are still up significantly over the past several sessions. Trump turns up heat on Fed ahead of expected rate cuts: 'It's something that they know they shouldn’t be doing.' In an interview with Bloomberg, former President Donald Trump addressed his thoughts on the path for monetary policy, the Federal Reserve, and its chair, Jerome Powell. Yahoo Finance's Jennifer Schonberger reports: New comments from former President Donald Trump are turning up the political pressure on the Federal Reserve as policymakers make it clear they are getting closer to cutting interest rates. In an interview with Bloomberg published Tuesday night, the Republican nominee again reiterated that central bank officials should not ease monetary policy before the November election. "It’s something that they know they shouldn’t be doing," he said. But Fed officials — including Fed Governor Chris Waller in a new speech Wednesday titled "Getting Closer" — are suggesting that the time for cuts is in fact drawing near. "While I don’t believe we have reached our final destination, I do believe we are getting closer to the time when a cut in the policy rate is warranted," Waller said in his speech at the Kansas City Federal Reserve. Powell’s response to the new wave of political pressure was to echo an independent, apolitical approach he has honed throughout 2024, emphasizing that the only criteria that matter to him are data on prices and jobs. "This is my fourth presidential election at the Fed, and I can tell you we come to work the next day and do our jobs," Powell said. He made the same point this past Monday during an interview at the Economic Club of Washington. Tech is dragging down the S&P 500 The S&P 500 is down more than 1% on Wednesday. But a closer look inside the index shows that in large part, it's Technology (XLK) pulling down the index. Technology is down more than 3.5% today, while Communication Services (XLC), also the home of several Big Tech names, is down nearly 1.4%. Notably, seven of the 11 sectors are still in the green on the day. Source: Yahoo Finance Nvidia, ASML, TSMC among chip stocks getting hammered amid major headwinds Major geopolitical headwinds dragged on chip heavyweights Nvidia (NVDA), TSMC (TSM), and ASML (ASML) on Wednesday. ASML slid more than 11% amid a Bloomberg report that the Biden administration is considering tighter semiconductor restrictions in an effort to prevent China from gaining access to high-end chip technology for AI. Taiwan Semiconductor Manufacturing also fell more than 5% after Republican candidate Donald Trump told Bloomberg Businessweek that Taiwan "should pay" the US for protection against China. During the interview published on Tuesday, Trump also said Taiwan took "about 100%" of the US chip business. Around 92% of the world’s most advanced chip manufacturing capacity is located in Taiwan, according to the US International Trade Commission. Nvidia shares fell as much as 6% during the session as the primary manufacturer for the AI giant's chips is Taiwan Semiconductor Manufacturing. Current US restrictions have already impacted US-based companies’ ability to sell to China. Nvidia sales to China decreased as a percentage of total data center revenue from 19% in fiscal year 2023 to 14% in fiscal year 2024. It's worth noting Intel (INTC) and GlobalFoundries (GFS) rose on Wednesday as both companies are expected to benefit from US government initiatives to onshore semiconductor manufacturing. The chip sell-off also came as investors have been rotating out of Big Tech names into small-cap stocks. The Russell 2000 (^RUT) has outperformed large-cap stocks on the Nasdaq 100 (^NDX) for five straight sessions. On Wednesday, the small-cap index was down less than 1% while the Nasdaq 100 declined more than 2%. Chip stocks were getting hammered on Wednesday amid major headwinds Amazon Prime Day sales stats emerge If people are worried about the election they didn't let it show on day one of Amazon (AMZN) Prime Day. Adobe Analytics data that just hit show consumers spent $7.2 billion on the first day of Prime Day, up 11.7% year over year. It marks the single biggest e-commerce day so far this year. Online sales were driven by electronics categories such as headphones and bluetooth speakers, TVs, fitness trackers, and tablets. All in all, not bad Investors are growing increasingly confident about a 'soft landing' Investors are increasingly confident that the global economy is headed for a so-called soft landing, where inflation falls toward the Federal Reserve's target without high interest rates sending the economy into a tailspin. In Bank of America's July Global Fund Manager Survey, released on Wednesday, 68% of respondents said a soft landing is the most likely outcome for the global economy in the next 12 months. This marked the highest percentage of respondents siding with such an outcome since January 2024. It tied for the second-highest reading in the past year. The call for a soft landing is in line with how fund managers are currently evaluating the balance of risks to markets. For the first time in six months, inflation wasn't the No. 1 risk listed by respondents. (Geopolitical conflict took the top spot this time.) Read more here. Home construction picks up in June — but it's 'not as good as it seems' New residential construction picked up in June as builders focused on scaling up multifamily projects. Housing starts rose 3% to a seasonally adjusted annual pace of 1.35 million units, according to data from the Census Bureau released Wednesday. Multifamily construction contributed to the gain last month. New construction of five or more units climbed to a seasonally adjusted annual pace of 360,000, up from 295,000 the month prior. “The rise in housing starts and building permits in June is not as good as it seems at first glance, as it was driven by gains in the volatile multifamily sector, which we think will prove temporary,” Thomas Ryan, an economist at Capital Economics, wrote after the release. Single-family starts and permits, though, fell 2.2% and 2.3% month over month, respectively. It was the fifth consecutive monthly drop in single-family permits, signaling further weakness ahead. The drop reflects the “argument that homebuilders are hesitant to start new projects given the large build-up of new homes for sale, which represents 9.3 months of supply at the current sales rate — the highest since November 2022,” Ryan added. Homebuilder stocks lost steam Wednesday on the heels of the fresh government data. The SPDR S&P Homebuilders ETF (XHB) fell 0.66%. D.R. Horton, Inc. (DHI), the biggest US homebuilder, slipped 0.6%, while Lennar (LEN) and Toll Brothers (TOL) dropped 0.6% and 0.5%, respectively, during morning trading. Stocks slide at the open led by chips US stocks pulled back from record highs on Wednesday as techs came under dual pressure from worries about US export curbs on China and Donald Trump's stance on Taiwan. The Dow Jones Industrial Average (^DJI) fell about 0.1% and the S&P 500 (^GSPC) fell nearly 1%, while the tech-heavy Nasdaq Composite (^IXIC) dropped more than 1.6%. The Biden administration has told allies it's looking at imposing tougher restrictions on companies still making advanced chip technology available to China despite existing export curbs, Bloomberg reported. This led to ASML (ASML) falling more than 8% and Nvidia (NVDA) sliding nearly 4%. BofA fund manager survey takes the pulse of an election sweep... The BofA monthly fund manager survey is out, and it's the latest piece of Wall Street insight putting forward the potential for an election sweep in November. Some of the key findings on this front: 77% think a sweep would lead to higher bond yields. 52% think a sweep would lead to a higher US dollar. 48% think a sweep would be positive for US stocks.
Nvidia, ASML, and TSMC stocks got hammered — here's why 2024-07-18 03:34:00+00:00 - Chip stocks Nvidia (NVDA), Taiwan Semiconductor Manufacturing (TSM), and ASML (ASML) have all soared this year thanks to investor bets on the artificial intelligence boom. On Wednesday, their momentum came to a screeching halt. The three stocks slid for reasons ranging from investor concern over export restrictions to a broader rotation out of tech stocks. One headwind that emerged was the potential for tighter restrictions on exports of semiconductor technology to China. Bloomberg reported the Biden administration is considering implementing a more severe curb involving controls on foreign-manufactured products that use even the smallest amount of American technology. Chip related stocks fell on Wednesday amid major geopolitical headwinds. Current restrictions have already impacted US-based companies’ ability to sell to China. Nvidia sales to China decreased as a percentage of total data center revenue from 19% in fiscal year 2023 to 14% in fiscal year 2024. ASML stock saw the steepest decline on Wednesday, falling more than 12%. Shares of the Netherlands-based chip equipment maker were also pressured following its third quarter guidance. While ASML beat its second quarter top- and bottom-line expectations, its revenue forecast for the current quarter came in shy of the consensus analyst estimate. The company also said it expects quarterly gross margin in the range of 50% to 51% versus Wall Street expectations of 51.1%. Exterior view of one of the buildings in the ASML complex in Veldhoven, Netherlands, Monday, Jan. 30, 2023. (AP Photo/Peter Dejong) (ASSOCIATED PRESS) Also dragging down chip stocks were comments from former president Donald Trump, who said Taiwan "should pay" the US for protection against any aggression from China. “You know, we’re no different than an insurance company. Taiwan doesn’t give us anything,” Trump told Bloomberg Businessweek in an interview published on Tuesday. He also said Taiwan took "about 100%" of the US chip business. Trump's comments sent shares of chip manufacturing and design giant TSMC plummeting more than 7% on Wednesday. Many chipmakers, including Nvidia, depend on Taiwan for manufacturing. The island located east of China is a major semiconductor hub with roughly 92% of the world’s most advanced chipmaking capacity, according to the US International Trade Commission. It's worth noting shares of semiconductor companies Intel (INTC) and GlobalFoundries (GFS) were up during the session. Both companies are seen beneficiaries of the Biden administration's push to onshore chip production to the US. The semis sell-off comes as investors have recently rotated out of big-cap names into small-cap stocks. The rotation out technology began last week after the latest inflation print gave investors more optimism that the Federal Reserve would start cutting rates in September. Story continues The Russell 2000 (^RUT) outperformed large-cap stocks on the Nasdaq 100 (^NDX) over a five-session streak. On Wednesday the small-cap index fell roughly 1% while the tech-heavy Nasdaq 100 dropped almost 3%. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices Read the latest financial and business news from Yahoo Finance
Capital One offers $265B benefit plan to appease regulators for its planned purchase of Discover 2024-07-18 03:12:00+00:00 - NEW YORK (AP) — Capital One said Wednesday it plans to offer $265 billion in lending, investing and philanthropy projects as part of its pending $35 billion merger with Discover Financial. The plan is designed to appease federal bank regulators, who have been initially skeptical of approving the merger, which would create the world's largest credit card company if it goes through. The five-year, $265 billion community benefit plan consists of several initiatives by Capital One, including a plan to lend $200 billion to low- and middle-income consumers, $44 billion in community development work and hundreds of millions of dollars to nonprofits, small businesses and minority-owned financial institutions. Announced back in February, Capital One said it plans to buy and merge with Discover Financial Services, which will create the seventh-largest bank in the country as well as the largest credit card company. Capital One would also acquire Discover's payment network, a rare asset. The Biden Administration has not weighed in on the Capital One-Discover merger specifically yet, but some of the major bank regulators and Democratic politicians have made public comments that large bank mergers — those over $100 billion like this deal — should be given extra scrutiny. Other non-bank mergers have also received increased scrutiny from the Federal Trade Commission and Department of Justice. Further several community and consumer groups have expressed concern or alarm about the size of the merged company, feeling it might reduce competition, and how much exposure a combined Capital One-Discover has to the credit card market. Notably, Capital One is including credit card lending as part of its plan. The McLean, Virginia-based company plans to offer $125 billion in credit card loans to low- and middle-income consumers as well as $75 billion in auto lending. Historically banks would offer lending programs to small businesses and mortgages, but Capital One doesn't have a mortgage lending department to do so. Consumer groups are expected to put heavy pressure on the Biden Administration to make sure the deal is good for consumers as well as shareholders. “The reason Capital One isn’t making any mortgage commitments here has some dark irony: They quit mortgage seven years ago, breaking promises they made the last time they bluffed regulators to get a merger through,” said Jesse Van Tol, CEO of the National Community Reinvestment Coalition, a group that often works with banks to develop these community lending programs. NCRC did not work with Capital One on this plan, but has worked with Capital One in the past on similar programs when it had previous mergers. Story continues Capital One said the plan was developed in partnership with the National Association for Latino Community Asset Builders, NeighborWorks America, the Opportunity Finance Network and the Woodstock Institute. “Throughout this process, we were encouraged by Capital One’s ownership of areas where it has room for improvement and openness to discussing ideas beyond its comfort zone. We look forward to continuing to work together to deliver on the plan’s commitments and help drive capital to the communities that need it most," said Harold Pettigrew, president and CEO of OFN. Capital One also pledged not to close any branches as part of the merger, and to continue opening more branches in low-income neighborhoods. The bank promised to keep one third of its branches in low-to-middle income census tracts as well, with plans to open more Cafes — a type of branch that acts as a community center, coffee shop and meeting space — in these neighborhoods as well. “This plan delivers high-impact, scalable solutions for low- and moderate-income communities, and its commitments and ambition reflect the robust, candid dialogue that drove its development,” said Andres Navarrete, executive vice president and head of external affairs at Capital One, in a statement.
Pipeline operator Kinder Morgan Q2 results miss estimates 2024-07-18 03:08:00+00:00 - (Reuters) -U.S. pipeline and terminal operator Kinder Morgan on Wednesday missed Wall Street estimates for second-quarter profit and revenue, weighed down by higher costs and weakness in its CO2 segment. Shares of the company were down 3.8% in trading after the bell. Kinder Morgan, which is the largest operator of carbon dioxide (CO2) pipelines in North America, said adjusted core profit from the transportation of CO2 fell about 6.3% to $164 million, from $175 million last year. The segment earnings were impacted by lower crude and natural gas liquids volumes and CO2 sales, the company said. The terminal operator's quarterly revenue came in at $3.57 billion, well below analysts' estimates of $4.13 billion, according to LSEG data. Kinder Morgan said it has launched a binding open season on its proposed South System Expansion 4 project, designed to increase Southern Natural Gas (SNG) Pipeline's South Line capacity by 1.2 billion cubic feet per day. CEO Kimberly Dang said the open season is a part of the company's efforts to meet significant new natural gas demand for electric generation associated with artificial intelligence operations, crypto-currency mining, data centers and industrial re-shoring. The company said it continues to have a bullish outlook for natural gas due to demand from LNG export facilities and increased exports from Mexico. This comes at a time when natural gas prices have declined nearly 17.5% since the start of the year. Adjusted core profit from Kinder's natural gas pipeline segment rose nearly 2.5% to $1.23 billion, as higher transport and gathering volumes helped partially offset the impact of asset divestitures and lower commodity prices. The Houston, Texas-based company posted an adjusted profit of 25 cents per share, in the three months ended June 30, narrowly missing analysts' estimates of 26 cents per share. (Reporting by Vallari Srivastava in Bengaluru; Editing by Shailesh Kuber)
Why Intel Shares Rallied Today on a Bad Day for Other Chip Stocks 2024-07-18 03:00:00+00:00 - Shares of Intel (NASDAQ: INTC) rallied as much as 8.2% today, before settling back into a 2.4% gain as of 12:40 p.m. ET. While that gain in and of itself wasn't especially notable in isolation, it was quite notable in light of the big declines across most of the rest of the semiconductor sector. For instance, the VanEck Semiconductor ETF (NASDAQ: SMH) was down around 5% at the same time Intel was up 2.4%. The discrepancy likely had to do with comments from former President Donald Trump, which raised questions as to whether the U.S. would defend Taiwan in the event of a Chinese invasion. Intel is the way to bring chipmaking back onshore There was other news today in chip world, with ASML Holdings (NASDAQ: ASML) reporting better-than-expected earnings, although with a second-quarter outlook that, while calling for quarter-over-quarter growth, came in a bit below what analysts were expecting. Another possible bearish element around chip equipment stocks today was chatter around further potential curbs on equipment sales to China. Today, Bloomberg reported the Biden Administration was "floating" the idea for increased curbs on equipment from Netherlands-based ASML and Japan-based Tokyo Electron (OTC: TOEL.Y), which the administration believes might still be selling advanced technology to China, despite 2022 curbs on U.S.-based semi-cap equipment sales to China. Still, these two news items don't explain why Intel would be up on a day when virtually all other major chipmakers are down. Intel also sells some chips into China, and is a buyer of ASML's machines. Thus, the reason likely has to be comments made by Trump in a Bloomberg Businessweek interview that was published today. In it, when asked about defending Taiwan in the event of a Chinese invasion, the former president and current Republican presidential candidate said: They did take about 100% of our chip business. I think, Taiwan should pay us for defense... You know, we're no different than an insurance company. Taiwan doesn't give us anything. It's no wonder that these comments sent most chipmakers down significantly today. Taiwan is home to Taiwan Semiconductor Manufacturing (NYSE: TSM), which has a current lead in advanced chipmaking, and where virtually all of today's leading-edge chips are produced. So if China were to invade Taiwan and cut off chip sales to the U.S., it could lead to an economic catastrophe. However, Intel is rushing to position itself as a secure alternative, as the only chipmaker besides Korea's Samsung that still has leading-edge manufacturing fabs. Under CEO Pat Gelsinger, Intel is investing significantly to build out a leading-edge foundry ecosystem for third parties in a bid to compete with TSMC. Story continues Currently, Intel is building or expanding its manufacturing in Arizona, Ohio, Oregon, Israel, Ireland, and Germany in a bid to become a geopolitically safe home for advanced chip designers that would like to move some or all of their production out of Taiwan. Intel is building out this footprint with the help of funding from the CHIPS Act, which was passed on a bipartisan basis in July 2022. TSMC is also getting CHIPS Act funding in order to build leading-edge fabs in Arizona as well. However, TSMC would still have the vast majority of its most-advanced production in Taiwan, even after that diversification. With Intel's footprint 100% outside of Taiwan, it would stand to benefit significantly should Taiwanese chipmaking come into question. A war would still be disastrous, but concerns over security could benefit Intel If Trump wins the election and then China invades Taiwan unopposed by U.S. defense, it would probably drag Intel down as well, just due to the significant broad global economic consequences. However, heightened risks over Taiwan could spur more chipmakers to move some or all of their production to Intel's foundry instead of TSMC's. Given that Intel has very little third-party foundry revenue today, these geopolitical concerns should help it grow that business faster than analysts expect. Should you invest $1,000 in Intel right now? Before you buy stock in Intel, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intel wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $774,281!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. See the 10 stocks » *Stock Advisor returns as of July 15, 2024 Billy Duberstein and/or his clients have positions in ASML, Intel, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends ASML and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel and short August 2024 $35 calls on Intel. The Motley Fool has a disclosure policy. Why Intel Shares Rallied Today on a Bad Day for Other Chip Stocks was originally published by The Motley Fool
Nasdaq 100 Suffers Worst Day In 11 Months As Chipmakers Tumble On China Curbs; Magnificent 7 Wipe Out $500B : What's Driving Markets Wednesday? 2024-07-18 02:27:00+00:00 - Nasdaq 100 Suffers Worst Day In 11 Months As Chipmakers Tumble On China Curbs; Magnificent 7 Wipe Out $500B : What's Driving Markets Wednesday? It’s deep red on Wall Street on Wednesday, with tech stocks sharply falling amid a semiconductor broad-based selloff following news that the Biden administration is hastening export restrictions to China. Bloomberg reported on Wednesday that the U.S. administration has advised its allies to impose the strictest trade restrictions possible if companies such as Tokyo Electron Ltd. (OTCPK: TOELY) and ASML Holding NV (NASDAQ:ASML) persist in supplying advanced chips to China. Shares of the Dutch chipmaker ASML Holding fell nearly 12%, notching the worst decline since March 2020. The tech-heavy Nasdaq 100 tumbled by 2.7% at 12:45 p.m. ET, marking the worst session since late August 2023. The semiconductor industry was the hardest hit. The iShares Semiconductor ETF (NYSE:SOXX) and the VanEck Semiconductor ETF (NYSE:SMH) both plummeted over 6%, marking their worst day since October 2022. The elite group of the ‘Magnificent Seven,’ tracked by the Roundhill Magnificent Seven ETF (NASDAQ:MAGS), saw a collective market cap loss of $500 billion in a single trading session. Nvidia Corp. (NASDAQ:NVDA) alone plummeted 7%, accounting for a $180 billion loss. The S&P 500 dropped 1.2%, while blue-chip stocks of the Dow Jones rose 0.6% to 41,200 points, extending their all-time highs and marking a sixth consecutive session of gains. Meanwhile, small caps took a breather, with the Russell 2000 index falling 1%, ending a five-day winning streak. U.S. natural gas futures fell over 6%, hitting two-month lows, due to lower-than-expected cooling demand amid milder weather forecasts for the next two weeks. Oil prices rallied 1.9% after U.S. inventories declined again last week. Gold edged down 0.5% from the all-time highs reached on Tuesday. The dollar fell 0.4%, with the dollar-yen pair dropping 1.3%. Bitcoin (CRYPTO: BTC) eased 1.2%. Wednesday’s Performance In US Major Indices, ETFs Major Indices Price 1-day % chg Dow Jones 41,154.73 0.5% Russell 2000 2,240.18 -1.1% S&P 500 5,592.13 -1.3% Nasdaq 100 19,862.83 -2.6% Updated at 1:05 p.m. ET According to Benzinga Pro data: The SPDR S&P 500 ETF Trust (NYSE:SPY) was 1.4% lower to $557.02. The SPDR Dow Jones Industrial Average (NYSE:DIA) rose by 0.4% to $411.20. The tech-heavy Invesco QQQ Trust (ARCA: QQQ) eased 2.7% to $482.82. Sector-wise, the Consumer Staples Sector SPDR Fund (NYSE:XLP) outperformed, up by 1.3%, while the Technology Select Sector SPDR Fund (NYSE:XLK) lagged, down 3.6%. Wednesday’s Stock Movers Advanced Micro Devices Inc. (NASDAQ:AMD) tumbled 8.3%, dropping below the 50-day moving average support. U.S.-listed shares of Taiwan Semiconductor Manufacturing (NYSE:TSM) plummeted 7% following reports that U.S. presidential candidate Donald Trump suggested Taiwan should compensate the U.S. for its defense. British chipmaker Arm Holdings plc (NASDAQ:ARM) tumbled 8.7%. Other chip giants, including Marvell Technology, Inc. (NASDAQ:MRVL), Lam Research Corporation (NASDAQ:LRCX) and Applied Materials, Inc. (NASDAQ:AMAT), also saw declined by about 8%. Johnson & Johnson (NYSE:JNJ) rallied 3.7% on stronger-than-expected quarterly results. Charles Schwab Corp. (NYSE:SCHW) plunged 9.4%, following a 10.2% drop on Tuesday, as several analysts lowered their price targets in response to disappointing Q2 earnings. Other stocks reacting to company earnings were Elevance Health Inc. (NYSE:ELV), down 6.5%, U.S. Bancorp (NYSE:USB), up 4.6%, Ally Financial Inc. (NYSE:ALLY), down 3%, Northern Trust Corp. (NASDAQ:NTRS), down 7%, Citizens Financial Group (NYSE:CFG), up 3.4% and Synchrony Financial (NYSE:SYF), up 0.6%. Companies reporting after the close include Alcoa Corporation (NYSE:AA), Discover Financial Services (NYSE:DFS), Kinder Morgan, Inc. (NYSE:KMI), SL Green Realty Corp. (NYSE:SLG), Steel Dynamics, Inc. (NASDAQ:STLD) and United Airlines Holdings, Inc. (NASDAQ:UAL). Story continues Read now: Image created using artificial intelligence via Midjourney. "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 Nasdaq 100 Suffers Worst Day In 11 Months As Chipmakers Tumble On China Curbs; Magnificent 7 Wipe Out $500B : What's Driving Markets Wednesday? originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Cassava Sciences Faces Leadership Shake-Up, Prioritizes Transparency And Scientific Rigor In Alzheimer's Trials 2024-07-18 02:17:00+00:00 - Cassava Sciences Faces Leadership Shake-Up, Prioritizes Transparency And Scientific Rigor In Alzheimer's Trials Cassava Sciences Inc (NASDAQ:SAVA) stock is trading lower on Wednesday on a heavy session volume of 14.35 million, as per data from Benzinga Pro. The Board of Directors appointed Richard (Rick) Barry as Executive Chairman and the company’s principal executive officer, effective immediately. The company is searching for a new permanent CEO. Mr. Barry succeeds Remi Barbier, the Company’s Chairman, President, and CEO, who resigned and will remain employed by the Company until September 13, 2024, in a non-executive capacity, without duties or responsibilities. Lindsay Burns, SVP of Neuroscience at Cassava, is also leaving the company. Cassava and Dr. Burns have agreed that she step down from her role with the company, effective immediately. Following her separation from the company and for a one-year period, Dr. Burns will furnish consulting services as and to the extent reasonably requested by Cassava to provide information and support for scientific research and/or obtain governmental approval for the company’s products. Cassava may, at its sole discretion, extend the term of the consulting agreement by up to an additional year. Related: Cassava Sciences Cooperates With DOJ, SEC On Controversial Alzheimer’s Drug Investigation. Mr. Barry said. “While our priority remains the development of a potentially effective treatment for Alzheimer’s disease, the Board has a steadfast commitment to doing so with transparency, accountability, and highest ethical business practices.” Among the actions the company is taking are: New Leadership: The Board plans to separate the Chairman and CEO roles after identifying a new CEO. Single-minded Commitment to Scientific Rigor and Honest Transparency: The company’s mission is to evaluate simufilam as a groundbreaking Alzheimer’s treatment, focusing on scientific rigor and transparency with patients, government agencies, and investors. All study results will be promptly and accurately posted on clinicaltrials.gov. Rigorous Clinical Trials: The ongoing Phase 3 trials adhere to FDA and industry standards to ensure the integrity of results. Under the FDA-reviewed protocols, no company personnel know or will know which subjects receive the drug or placebo. Blinding information is maintained by a small group at CRO, Premier Research. Additionally, company personnel do not have access to sub-study results or other data that could reveal which patients are on placebo. All data is sent directly to Premier Research. Statistical analyses are conducted by professional biostatisticians at Pentara Corporation, with trial results transmitted to them independently by the CRO, without company involvement. Transparency in Communications and Reporting: Cassava is dedicated to maintaining transparent communication with its stakeholders. The company will resume quarterly analyst calls and ensure management is accessible to journalists. Cassava is also reviewing its disclosure practices to provide clear, comprehensive information. Ongoing dialogues with shareholders, employees, customers, regulators, and the community will shape the company’s governance practices. Story continues Price Action: SAVA shares are down 27.20% at $9.85 at the last check on Wednesday. Read Next: "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 Cassava Sciences Faces Leadership Shake-Up, Prioritizes Transparency And Scientific Rigor In Alzheimer's Trials originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Stegosaurus sells for almost $45 million at Sotheby's auction, the most for any dinosaur fossil 2024-07-17 22:27:00+00:00 - Dinosaur skeleton found in U.S. finally finds new home in Europe Sotheby's has auctioned off the skeleton of a stegosaurus named Apex, billed as "the finest for Stegosaurus to ever come to market," for almost $45 million, a record. The sale price far exceeds the estimate of $4 million to $6 million that Sotheby's had assigned to the lot. Described as a mounted Stegosaurus skeleton, the exact sale price was $44.6 million, surpassing earlier sales records for dinosaur fossils. Sotheby's, which said the auction closed Wednesday morning, did not immediately disclose the buyer's identity. "'Apex' lived up to its name today, inspiring bidders globally to become the most valuable fossil ever sold at auction," Cassandra Hatton, Sotheby's global head of science & popular culture said in a statement following the sale. "This sale has been years in the making, and at every turn, we have worked closely with Jason Cooper, from the moment of its discovery in Dinosaur, Colorado, to its sale in New York," she added, making reference to the paleontologist who discovered the specimen. The sale of Apex Wednesday set a new record for a dinosaur fossil. Matthew Sherman The iconic skeleton is approximately 161 million years old, according to Sotheby's, and measures 11 feet tall by nearly 27 feet long from nose to tail. According to the auction house's listing, Apex "is mounted in an aggressive attack pose on a custom steel armature." It was excavated on private land in Moffat County, Colorado, near the town of Dinosaur, between 2022 and 2023. "Apex" sold for $45 million at a Sotheby's auction Wednesday. Alexi Rosenfeld / Getty Images Close-up of a Stegosaurus fossil that sold for nearly $45 million in a Sotheby's auction on July 17, 2024. Alexi Rosenfeld / Getty Images The fossil of one of the world's most recognizable dinosaurs is nearly completely intact, according to Sotheby's. The fossil also shows signs of arthritis, suggesting that Apex lived a long life. Apex is not the first dinosaur to sell at auction. In 1997, a Tyrannosaurus rex fossil sold for $8.4 million and in 2020, another T. rex skeleton fetched $32 million. Two years later, in 2022, Sothebys sold a Gorgosaurus skeleton for over $6 million. — The Associated Press contributed to this report
Darden Restaurants to acquire Chuy's for approximately $605 million 2024-07-17 22:19:00+00:00 - Darden Restaurants will acquire Chuy's Holdings for approximately $605 million in cash, the companies announced jointly on Wednesday. Darden agreed to acquire all outstanding shares of Chuy's at $37.50 per share, according to a press release. The Tex-Mex restaurant chain joins Darden's portfolio that includes restaurants such as Olive Garden, LongHorn Steakhouse and Ruth's Chris Steak House. "Based on our criteria for adding a brand to the Darden portfolio, we believe Chuy's is an excellent fit that supports our winning strategy," Darden CEO Rick Cardenas said in a statement. "I am excited to welcome their 7,400 team members to Darden and diversify the Darden portfolio into a new dining category." Chuy's generated total revenues of over $450 million in its latest twelve months ending March 31, according to the release. The company, founded in Austin, Texas in 1982, has 101 restaurants in 15 states. Cardenas said in the press release that Chuy's has strong performance and growth potential for Darden. "Together we will accelerate our business goals and bring our authentic, made-from-scratch Tex-Mex to more guests and communities," Chuy's CEO Steven Hislop said in a statement. Darden expects the transaction to be completed in their fiscal second quarter, according to the release.
Trader Joe's viral insulated mini totes are back in stock today 2024-07-17 22:12:00+00:00 - Dad talks about his viral Westlake Village Trader Joe's receipt Dad talks about his viral Westlake Village Trader Joe's receipt 03:23 Trader Joe's mini insulated tote bags are back in stock Wednesday, after they sold out almost immediately when they first hit the grocery store chain's shelves in June. The insulated cooler bags proved so popular upon their initial release that customers who'd managed to get their hands on the $3.99 mini totes listed extras on resale sites like Ebay at inflated prices. There are currently 150 listings for the cooler bags on Ebay, where resellers are hawking sets of them for as much as $200. Trader Joe's told CBS MoneyWatch Wednesday the bags are now back in stock. The grocer in June had promised they would become available again later in the summer. "A limited number of magenta and teal mini insulated totes will be available for $3.99 in most Trader Joe's stores today," Trader Joe's said in a statement to CBS MoneyWatch. As of Wednesday afternoon, they were in stock in at least one Manhattan Trader Joe's store, where customers were limited to two bags per person. The bags come in two colors, "hot magenta" and "cool teal." A Trader Joe's spokesperson noted it is up to individual stores to set purchase limits. The $3.99 cooler bags have become a sensation among consumers. Megan Cerullo/CBS MoneyWatch Trader Joe's touts the mini bags as "great for lunches, travel & outdoor activities." They hold up to 1.5 gallons of food and drink. It's unclear why the items, which resemble traditional kids' lunch bags with soft exteriors, are so popular. They are also not the first Trader Joe's-branded piece of merchandise to become a sensation among consumers. Its mini canvas tote bags, originally priced at $2.99, were also wildly popular. After they quickly sold out in stores, one seller listed a set of four tote bags on Ebay for $499.99, breaking down to $125 per bag.
Tinder's new AI tool will curate your dating profile pictures for you 2024-07-17 22:11:00+00:00 - Tinder is deploying a new feature which uses artificial intelligence to help users pick images for their dating profiles. The tool, called Photo Selector, requires daters to take a selfie for facial recognition and then allow the app to access photos on their smartphone. Then, the AI-powered technology recommends up to 27 photos that are meant to help users make a good first impression. The dating app claims that this is a highly desired feature: 68% of app users said an AI-powered photo selector would be helpful, according to Tinder's own survey data. And 52% said it's hard to select profile images. "The tool attempts to exclude photos with multiple faces and photos that appear to violate our rules," such as ones that include nudity and drugs, a spokesperson told CNBC Make It. "Then, Photo Selector curates a diverse selection of photos based on what works well on Tinder - things like lighting, composition, and more." Tinder has used AI to alter its user experience for years. The feature "Are You Sure?," released in 2021, detects potentially harmful or inappropriate language in an opening line and asks the user if they are sure they want to send it. The app also has a "Does this bother you?" tool which recognizes possibly offensive language in a message and asks the recipient if they'd like to report it. Tinder is not the only dating app utilizing AI. Bumble created the tool Private Detector, which uses AI to recognize and blur nude images sent on the app. Earlier this year, Bumble founder and former CEO Whitney Wolfe Herd said she envisions daters using an AI concierge to coach them on how to better converse. "You could, in the near future, be talking to your AI dating concierge and you could share your insecurities ... and then it could give you productive tips for communicating with other people," she said at Bloomberg Tech in San Francisco. Eventually, she says, people could use their AI concierge to find matches for them. "There is a world where your dating concierge could go and date for you with other dating concierge ... and then you don't have to talk to 600 people," she said. These features come along at a time when many people feel frustrated with dating technology. Almost half, 46%, of Americans say they have had somewhat or very negative experiences online dating, according to 2023 data from Pew Research Center. Want to stop worrying about money? Sign up for CNBC's new online course Achieve Financial Wellness: Be Happier, Wealthier & More Financially Secure. We'll teach you the psychology of money, how to manage your stress and create healthy habits, and simple ways to boost your savings, get out of debt and invest for the future. Start today and use code EARLYBIRD for an introductory discount of 30% off through September 2, 2024. Plus, sign up for CNBC Make It's newsletter to get tips and tricks for success at work, with money and in life.
Here's why international buyers are pulling way back from the U.S. housing market 2024-07-17 22:11:00+00:00 - International buyers of U.S. residential real estate are running into the same hurdles as domestic buyers — namely high prices and tight supply — but they're also up against a strong U.S. dollar, which makes the properties even more expensive for them. As a result, international buyers are pulling out. They purchased 54,300 existing homes from April of last year to March of this year, a 36% drop from the year before, according to a new report from the National Association of Realtors. This is the lowest level of international investment since the NAR began tracking it in 2009. The dollar volume, $42 billion, was also down 21% from the year before. This comes as both the average ($780,300) and median ($475,000) purchase prices were the highest the NAR ever recorded for foreign buyers. The top buyers by volume were from Canada, China, Mexico and India. Those buyers purchased the most properties in Florida, Texas, California and Arizona. Chinese buyers spent the most money, purchasing higher priced homes, according to the NAR. The report only counts sales of existing homes, and foreign buyers are big in the new development space, which is not reflected in the data. "The strong U.S. dollar makes international travel cheaper for Americans but makes U.S. homes much more expensive for foreigners," said Lawrence Yun, chief economist for the NAR. "Therefore, it's not surprising to see a pullback in U.S. home sales from foreign buyers." But foreign buyers also face additional hurdles. "We don't have a credit score, we have a weird name, we have a different passport," said Yuval Golan, CEO of Waltz, a new company that aims to facilitate foreign purchases of U.S. residential real estate. "Then we need to wire money across two countries, that takes time. There's additional foreign currency exchange that we need to deal with, a bunch of titles are things we don't know, like a title company, and a mortgage broker and a lender that might not understand our history of credit and income." Golan said Waltz provides foreign investors with a simpler, remote experience to buy U.S. real estate in 30 days. "We underwrite them in their home country, we help them to set up an LLC. Within seconds, we open for them a U.S. FDIC-insured bank account, we collect their money locally, and we're able to do foreign currency exchanges within seconds," Golan added. Waltz is also acting as a mortgage lender, albeit at higher than market rates. As it stands, international buyers make up just 1.3% of all U.S. home sales annually, according to the NAR, and half of international buyer sales were all-cash, compared with 28% of total existing-home sales. More supply is coming onto the U.S. market, but it is still historically low, and prices remain stubbornly high. And then there's the upcoming presidential election. International buyers tend to pull back during times of political uncertainty. It is unlikely sales from foreign buyers will improve in the coming year unless several factors, both economic and political, improve.
Democratic Sen. Bob Menendez tells allies he will resign after bribery conviction 2024-07-17 21:41:00+00:00 - WASHINGTON — Sen. Bob Menendez, D-N.J., has told allies that he will resign from Congress after being convicted on federal corruption charges, two people directly familiar with those conversations tell NBC News. Menendez, who had been defiant for months in the face of calls from dozens of Senate Democrats to resign, appears to have finally relented after the guilty verdict and growing threats to expel him if he refused. He is calling allies to them of his intention to resign, these sources said, ending would end a three-decade career in Congress that included a powerful committee chairmanship, writing major legislation and two criminal trials over allegations of corruption. Among those who urged him to resign were Senate Majority Leader Chuck Schumer, D-N.Y.; Senate Majority Whip Dick Durbin, D-Ill.; and Menendez's friend and fellow New Jersey Democratic senator, Cory Booker. “In light of this guilty verdict, Senator Menendez must now do what is right for his constituents, the Senate, and our country, and resign,” Schumer said in a statement after Menendez's latest corruption trial ended in guilty verdicts. The senator was convicted Tuesday on 16 federal counts related to using the power of his official position to enrich three New Jersey businessmen and benefit the Egyptian and Qatari governments. In exchange, the couple received lavish bribes, including “cash, gold bars, payments toward a home mortgage, compensation for a low-or-no-show job, a luxury vehicle and other items of value,” prosecutors said. If Menendez does step down, New Jersey Gov. Phil Murphy, who was among the first Democrats to call for Menendez to quit, will appoint a senator to temporarily finish out his term, which ends in January 2025. Democratic Rep. Andy Kim and Republican Curtis Bashaw are running in the November general election to take Menendez's Senate seat. Menendez had filed to run for the seat as an independent and said he would continue the campaign if exonerated. Menendez's political career dates back nearly four decades to the mid-1980s, when he became mayor of Union City. He eventually served for 13 years in the House before ascending to the Senate in 2006. He had two stints as chairman of the Senate Foreign Relations Committee, a post he relinquished last year after his indictment. But he remained a voting member of the panel and in the full Senate, even while he was accused of abusing his power to benefit foreign governments. Menendez and his wife, Nadine, were charged in September with conspiracy to commit bribery, conspiracy to commit honest services fraud and conspiracy to commit extortion under color of official right, according to the initial indictment against him. Weeks later, he was charged in a superseding indictment with accepting bribes from a foreign government and conspiring to act as a foreign agent. Menendez "provided sensitive U.S. Government information and took other steps that secretly aided the Government of Egypt," the indictment alleged. Menendez denied the allegations against him, arguing in a statement that he was facing “an active smear campaign” and that prosecutors “misrepresented the normal work of a Congressional office.” He has since said he will appeal his conviction. In public remarks in September, he said the $480,000 in cash investigators had found squirreled away in envelopes hidden around his house was money he'd saved over decades to be used "for emergencies." In 2015, Menendez was also indicted on federal corruption charges stemming from allegations that he accepted favors from a wealthy Florida optometrist, including travel, accommodations and political contributions. The case ended in a mistrial after jurors could not reach a unanimous verdict. Prosecutors in 2018 opted not to retry Menendez after the judge overseeing the case tossed out some of the original counts. Menendez is the first sitting senator in U.S. history to be indicted on two unrelated criminal allegations, according to data compiled by the Senate Historical Office. The son of Cuban immigrants, Menendez was one of the Senate's most prominent advocates for overhauling the immigration system and co-authored the "Gang of 8" bill in 2013, a bipartisan immigration overhaul that passed the Senate and died in the House. Last year, he introduced a framework to reform immigration programs that included creating new pathways to citizenship amid ongoing concerns about the number of migrant crossings along the southern border.
Discover Xbox's Deadpool-Inspired 'Cheeky Controller' And How To Get It - Microsoft (NASDAQ:MSFT) 2024-07-17 21:39:00+00:00 - Loading... Loading... Microsoft Corp. MSFT has unveiled a new Xbox controller inspired by none other than Deadpool himself. The announcement, made via Xbox Wire, introduces the “Cheeky Controller,” a striking new addition to the Xbox lineup modeled after what Microsoft playfully describes as “Deadpool's much-discussed, perfectly rounded tush.” See Also: Xbox Game Pass Ultimate Sets New Price At $19.99: Day One Releases Exclusive To Premium Tier “This controller channels Deadpool’s buns of steel in its firm (yet surprisingly comfortable) grip,” Microsoft revealed. Limited Availability And Exclusive Offers However, obtaining this eye-catching accessory won’t be straightforward. Microsoft has opted to make the Deadpool-inspired controller available exclusively through a sweepstakes format. Fans worldwide, aged 18 and above, are invited to enter for a chance to win the Cheeky Controller by following Xbox on social media and retweeting the official sweepstakes announcement. This approach mirrors previous successful campaigns where Microsoft has used exclusive merchandise to engage its community and reward dedicated fans. The collaboration doesn’t stop at the controller. On July 22, the first 1,000 customers purchasing an Xbox Elite Wireless Controller Series 2 – Core from the Microsoft Store will receive an exclusive Cable Guys Deadpool Controller Holder by EXG Pro. Deadpool-Inspired Xbox Series X and More Marvel enthusiasts have even more reasons to celebrate with the announcement of a custom Deadpool-inspired Xbox Series X bundle. This special edition includes foam replicas of Deadpool's iconic katanas, Bea and Arthur, along with two matching Xbox Wireless Controllers. Like the Cheeky Controller, this bundle will be available exclusively through a competition, underscoring Microsoft’s commitment to creating memorable fan experiences. Teasing Marvel’s Upcoming Deadpool & Wolverine In tandem with these gaming announcements, Marvel Studios has teased its upcoming film, Deadpool & Wolverine, with a sneak peek into the world of the Deadpool Corps. Meanwhile, the latest teaser trailer introduces characters like Lady Deadpool, Dogpool, and Cowboy Deadpool. As fans await the premiere of Deadpool & Wolverine on July 26, anticipation is high for what promises to be a game-changing addition to the MCU. Read Next: Image courtesy of Xbox.
Who Is Emio? Nintendo Unveils Latest Famicom Detective Club Mystery - Nintendo Co (OTC:NTDOY) 2024-07-17 21:38:00+00:00 - Loading... Loading... Nintendo ADR NTDOY recently teased a mysterious new project with the hashtag "#WhoIsEmio?" and a cryptic 15-second video. This teaser, released on a random Wednesday in July, left many fans intrigued and somewhat unnerved. The suspense ended with an official announcement and a new listing on the Nintendo eShop, revealing Emio – The Smiling Man: Famicom Detective Club. See Also: Nintendo Switch Breaks Record As Longest-Lasting Home Console A Familiar Series Returns Emio, known as Smiling Man in the Japanese version, is not a brand-new horror project but the latest installment in the long-standing Famicom Detective Club series. Players will assume the role of a detective tasked with solving a gruesome murder involving a student found with a paper bag displaying a smiling face over his head. Despite early rumors linking the game to The Medium studio Bloober Team, Nintendo confirmed that Emio – The Smiling Man: Famicom Detective Club was developed internally, with Metroid producer Yoshio Sakamoto at the helm. Sakamoto shared more details about the game in a short video posted by Nintendo. Reviving A Classic Emio – The Smiling Man marks the first new entry in the Famicom Detective Club series in 30 years. The last major release was in 1994. In 2021, Nintendo revitalized the series by releasing remakes of the original games, The Missing Heir and The Girl Who Stands Behind, which originally debuted in the late 1980s. These remakes were well-received, reigniting interest in the franchise and paving the way for this latest installment. Launch Details Emio was not featured during the Nintendo Direct event in June. However, it is set to join Nintendo's holiday release lineup, launching on Aug. 29. The game promises to bring a blend of classic detective storytelling with modern gaming elements. It offers both longtime fans and newcomers an engaging experience. Read Next: Image courtesy of Nintendo via Twitter.
How NASA and SpaceX will bring down the space station when it’s retired 2024-07-17 21:37:50+00:00 - CAPE CANAVERAL, Fla. (AP) — SpaceX will use a powerful, souped-up capsule to shove the International Space Station out of orbit once time is up for the sprawling lab. NASA and Elon Musk’s company on Wednesday outlined the plan to burn the space station up on reentry and plunge what’s left into the ocean, ideally at the beginning of 2031 when it hits the 32-year mark. The space agency rejected other options, like taking the station apart and bringing everything home or handing the keys to someone else. NASA gave SpaceX a $843 million contract to bring down the station — the biggest structure ever built off the planet. Here’s a rundown on the work and challenges ahead: Why get rid of the space station? The space station is already is showing signs of age. Russia and the U.S. launched the first pieces in late 1998, and astronauts moved in two years later. Europe and Japan added their own segments, and Canada provided robotic arms. By the time NASA’s shuttles retired in 2011, the station had grown to the size of a football field, with a mass of nearly 1 million pounds (430,000 kilograms). NASA figures the station will last until at least 2030. The goal is for private companies to launch their own space stations by then, with NASA serving as one of many customers. That strategy — already in place for station cargo and crew deliveries — will free NASA up to focus on moon and Mars travel. NASA could decide to extend the station’s life, too, if no commercial outposts are up there yet. The aim is to have an overlap so scientific research is not interrupted. Why not bring it back to Earth? NASA considered dismantling the space station and hauling the pieces back to Earth, or letting private companies salvage the parts for their own planned outposts. But the station was never intended to be taken apart in orbit, according to NASA, and any such effort would be expensive and also risky to the astronauts who would handle the disassembly. Besides, there’s no spacecraft as big as NASA’s old shuttles to bring everything down. Another option would be to boost the empty station to a higher, more stable orbit. But that, too, was dismissed given the logistical issues and the increased risk of space junk. How will it be brought down? Visiting spacecraft periodically boost the space station so it remains in an orbit approximately 260 miles (420 kilometers) high. Otherwise, it would keep getting lower and lower until it plunged, uncontrolled, from orbit. NASA wants to ensure a safe reentry over a remote section of the South Pacific or possibly the Indian Ocean, so that means launching a spacecraft that will dock to the station and steer it toward a watery grave. NASA and its partners considered using three Russian supply ships for the job, but a more robust craft was needed. The call went out to industry and, in June, SpaceX won the contract for a deorbit vehicle. What will the deorbit spacecraft look like? SpaceX plans to use an ordinary Dragon capsule — the kind that carries supplies and astronauts to the space station — but with a much bigger trunk housing a record 46 engines and more than 35,000 pounds (16,000 kilograms) of fuel. SpaceX’s Sarah Walker said the challenge will be creating a spacecraft powerful enough to guide the space station while resisting the tugs and forces from increased atmospheric drag during final descent. This spacecraft will require an especially powerful rocket just to get to orbit, according to NASA. The capsule would be launched 1 1/2 years before the station’s planned demise. Astronauts still would be aboard as it’s gradually lowered. Six months before the station’s destruction, the crew would abandon ship and return home. Once the station is down to about 137 miles (220 kilometers), the Dragon would bring it down four days later. Has this been done before? NASA’s first space station, Skylab, came crashing down in 1979, with debris raining down onto Australia and the surrounding Pacific. The space agency had hoped one of the first space shuttle crews could attach a rocket to control Skylab’s descent or boost its orbit. But the shuttle wasn’t ready by then, with its first flight not until 1981. Ground controllers managed to send Skylab into a slow tumble, aiming for the Indian Ocean. But some pieces also landed in Western Australia. Russia has had more experience with incoming space stations. Mir operated for 15 years before being guided to a fiery reentry over the Pacific in 2001. Before that, several Salyut stations bit the dust. Will anything be saved? NASA wants to bring back some small items from inside the space station for museum display, like the ship’s bell and logs, panels with patches and other mementos. Those can come down in SpaceX supply ships in the final year or two. “Unfortunately, we can’t bring home really, really big stuff,” said NASA’s Ken Bowersox. “The emotional part of me would love to try and save some,” but the most practical approach is to bring everything down in one destructive stroke, he said. ___ The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.
Almost 3.5 tons of hot dogs shipped to hotels and restaurants are recalled 2024-07-17 21:27:00+00:00 - Nearly 3.5 tons of hot dogs shipped to restaurants and hotels in Ohio and West Virginia are being recalled by AW Farms of Argillite, Kentucky, because the meat was not inspected, the U.S. Department of Agriculture announced on Monday. The recall involves approximately 6,900 pounds hot dogs that were produced without the benefit of federal inspection, according to the USDA's Food Safety and Inspection Service. The ready-to-eat dogs were manufactured on various dates starting on about May 30, 2024, and have a shelf-life of 45 days, the notice stated. The recalled products bear establishment number "EST. 47635" inside the USDA mark of inspection, it added. You can view the product labels here. The issue was uncovered when a state public health partner notified FSIS about the products, which could still be in restaurants' or hotels' refrigerators or freezers, the federal agency said. The following products are part of the recall: 10-lb. boxes containing two 5-lb. vacuum-packed packages containing "FRENCH CITY FOODS 6" 12-1 HOTDOGS" and "PACKED ON" with various dates since approximately May 30, 2024, represented on the label. 10-lb. boxes containing two 5-lb. vacuum-packed packages containing frozen "PORK, BEEF, DEXTROSE, SALT, SUGAR MAPLE GEO BROWN ALL MEAT HOTDOGS" and "PACKED ON" with various dates since approximately May 30, 2024, represented on the label. 10-lb. boxes containing two 5-lb. vacuum-packed packages containing frozen "GEO BROWN ALL BEEF HOTDOGS" and "PACKED ON" with various dates since approximately May 30, 2024, represented on the label. The recalled products should be thrown out or returned to the place of purchase, the recall notice stated.
Here's an update on all 34 portfolio stocks, including the winners in a Trump presidency 2024-07-17 21:25:00+00:00 - Here's a rapid-fire update on all 34 stocks in Jim Cramer's Charitable Trust, the portfolio we use for the CNBC Investing Club. During the July Monthly Meeting on Wednesday, Jim analyzed the portfolio through the lens of how a Donald Trump victory in the November election would impact our stocks. Apple : If Trump wins the election, the former president threatens to impose tariffs of 60% to 100% on Chinese goods, which could hurt demand in the region — Apple's second-largest market. But the upcoming AI-integrated iPhone should spur sales, Jim said, ushering in an upgrade cycle for the company's flagship device. He also forecasted that shares will likely decline soon after hitting a series of record highs. A move lower for the stock, however, won't change the Club's "own it, don't trade" view. Abbott Laboratories : Baby formula litigation remains the biggest overhang on Abbott shares, and our view on it has yet to change. Abbott's lost market cap since mid-March, when rival Reckitt Benckiser lost a lawsuit over its formula, greatly exceeds the potential penalties it may need to pay. Advanced Micro Devices : Artificial intelligence remains a strong secular growth story, and our decision to restart a position in AMD on Monday reflects our belief in the company to benefit both in its data center business and PC unit. We added to our position again Wednesday in the sell-off. Amazon : With the stock being punished in the recent rotation out of tech, Jim said new investors can start to build a stake in the e-commerce and cloud giant around current levels. As always, start with a smaller stake to leave room to scale in over time. The stock isn't necessarily cheap, but so much is going right at the company. Broadcom : In our first 11 months owning Broadcom, its AI data center business has largely propelled the stock to impressive highs. Now the fruits of its VMWare acquisition, which closed late last year, are becoming impossible to ignore, offering a second wind for the stock. Best Buy : Trump's recent threat to impose tariffs certainly catches our attention considering some of the electronics Best Buy sells could be made in China. It would be too glib to say we're not concerned about a potential impact to sales, but we also recognize there's still an election to play out and the stepped-up tariffs are not a certainty. Costco : While Costco gets nearly 7% of its sales from China, Jim said it's unlikely its business would be threatened by geopolitics given the company's popularity in the country. Salesforce : The enterprise software maker's last quarter was not great, but over the long term the stock has proven itself to be a winner. It is well-positioned to unlock the power of AI for its customers, given their distinct data advantages. Coterra Energy : The oil-and-gas producer is a clear-cut winner if Trump wins in November. Earlier this year, the Biden administration paused approvals of liquefied natural gas exports. Coterra does well with bountiful export markets. Dupont : Jim said Dupont is a buy right here. A second Trump administration is likely to be more favorable toward mergers than the current White House, which would help Dupont as it embarks on a three-way breakup plan. Those soon-to-be standalone entities could become takeover targets. Danaher : The life sciences firm's business in China continues to be a drag on the company. At around 14% of sales, it's not so material that Danaher should be sold, but it's just big enough to put a cap on the stock's short-term potential. Walt Disney : We sold stock before the April proxy vote in case activist investor Nelson Peltz did not win, which proved prescient. Hindsight is 20-20, though, and exiting entirely would've been the better move. While we can't hide our disappointment, there's too much untapped value in Disney to abandon the stock here. Dover : The company continues to benefit from its exposure to megatrends like the clean energy transition. A Trump victory, however, means less environmental regulation. That won't stop us from staying in the stock. Climate change is real, Jim said, and the Club sticks with companies that are on the right side of history. Plus, continued investments in data centers will be a key driver for the conglomerate's growth regardless of who takes office. Estee Lauder : A formerly pristine franchise, the cosmetics firm remains in a challenging spot. Jim reiterated that he regrets not bailing on the stock earlier to fund higher-quality positions. Eaton : Jim maintained his long-term thesis on Eaton as shares declined 4% on Wednesday after Bloomberg reported that the U.S. could impose tougher trade rules around semiconductor tech. The market's reaction is overblown and, for now, mostly speculative. Eaton's exposure to data centers with offerings like power management solutions will serve as a multi-year tailwind for the industrial stock. Ford : The automaker is a winner with no real China exposure. Plus, it has excellent free cash flow, benefits from Federal Reserve rate cuts and still has the opportunity to implement a buyback like crosstown rival General Motors. Even with a strong move in recent weeks, there's a lot to like about Ford. GE Healthcare : The way the stock has traded lately suggests GE Healthcare is more exposed to interest rates than China liability. And if rates are going down in the coming months, that will make financing purchases of its expensive medical-equipment machines easier for hospitals and other medical facilities. Alphabet : Another victim of the tech rotation. While we have owned Alphabet and its other Big Tech peers for ages and don't want to get complacent, nothing in the recent sell-off is cause for long-term concern. Honeywell : Jim likes management's recent efforts to refine the conglomerate's sprawling portfolio to acquire more profitable businesses. He cited Honeywell's recently announced plan to purchase Air Products' liquefied natural gas business, which gives the company exposure to the rapidly growing data center space. Linde : This global enterprise has projects all across the world. Still, having an administration in Washington that's seen as more pro-business with less regulations stands to benefit Linde. Plus, the potential for lower interest rates and by extension more economic activity would benefit the industrial gas firm. Eli Lilly : The stock is getting hit Wednesday on competition concerns, not politics, after Roche released promising early stage trial data for a second obesity drug. However, investors should not lose sight of Eli Lilly's huge manufacturing lead that builds a moat around its GLP-1 franchise, which includes Zepbound for obesity and Mounjaro for type-2 diabetes. Stick with Lilly. Meta Platforms : The Facebook and Instagram parent has drawn the ire of Trump, and his vice presidential pick, Sen. J.D. Vance of Ohio, has been critical of Big Tech. More recently, Meta has been caught up in the great rotation out of tech. It's certainly been painful to watch the stock fall more than 13% in just a few days, but we don't believe this is a permanent move away from Meta and peers. Rotations happen from time to time. Morgan Stanley : The Wall Street firm's key investment banking division could see a boost in M & A and other deals under Trump's less stringent antitrust policies. In fact, we'd consider increasing our price target on the financial stock if Trump is sworn into office. Microsoft : Investors should remain long on shares despite its recent decline. Although it's not an ideal name to own in a declining interest rate environment, Jim said Microsoft still has an incredible franchise with massive growth prospects. The company's partnership with OpenAI, the creator of ChatGPT, along with new AI offerings such as Copilot, are prime examples. Nvidia : The leading AI chipmaker has been subject to geopolitical risks under the Biden administration due to export controls to China, and Trump's recent comments on Taiwan inject a new dose of uncertainty in this realm. But the long-term opportunity around generative AI hasn't changed. Nextracker : While a Republican administration would seem more hostile to clean-energy initiatives, it's important to remember that Nextracker's key customers are other companies with carbon emissions goals of their own. And bigger picture, given there is still more than 100 days to the election, it certainly makes sense to own a stock that could have an expanding multiple if Trump is defeated in November. Palo Alto Networks : This company is tied to one of the greatest secular growth themes: cybersecurity. Demand for Palo Alto's offerings continue to rise as incidents of hacks and virtual breaches do the same. Plus, shares seem to finally be out of the mud after its massive post-earnings drop earlier this year. Procter & Gamble : The consumer staples giant has been a rock-solid performer this year, but Jim said the company is worth a little less under Trump than under Biden because it sells products all over the world, including in China. Starbucks : China is an important part to the Starbucks story, but election risks are not the most pressing topic for the stock right now. Jim said he believes the misrepresentation of the company's views on the Israel-Gaza conflict is a bigger thorn in its side. The stock has been a major disappointment, but we're concerned about selling near the bottom, only to watch CEO Laxman Narasimhan pull a rabbit out of his hat and get the coffee giant back on track. Constellation Brands : There's no doubt that the Modelo and Corona parent is a less attractive stock under Trump compared with Biden. Nevertheless, we see plenty of reasons including an attractive valuation and a potential for an aggressive buyback to stick with the stock. Stanley Black & Decker : Trump's tariff threats — where most of the company's products are sourced — present a headwind for the stock. And although Stanley Black & Decker serves as the Club's most-important interest rate play, the firm will not be able to compete with tools not made in China. Investors may turn to peers like Home Depot or Lowe's , instead, to benefit from forthcoming easing of monetary policy. The Club offloaded shares of the retailer on Tuesday, rightsizing after a recent run higher. TJX Companies : We trimmed our position Friday after a great run for the stock. It does not operate in China, which minimizes its risk to heightened U.S.-China tensions. Still, price matters under a Biden or Trump administration, so we wanted to lock in profits to ensure we have room to buy back shares if they get hit in the future. Wells Fargo : Trump is a "bonanza" for the bank's shareholders, Jim said. The former president's soft stance on regulation presents a tailwind for the stock: the removal of Wells Fargo's' $1.95 trillion asset cap. Shares will see more upside once this is lifted, and the firm can grow its balance sheet further. Wynn Resorts : Wynn is the Club holding with the most China exposure, with its two key properties in Macau. The stock has struggled mightily since April, but Jim said he's hesitant to give it away at such depressed levels. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Traders and floor officials react to technical issues on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 3, 2024. Brendan McDermid | Reuters
Chaos at Copa America raises doubts over U.S. 2026 World Cup readiness 2024-07-17 21:23:00+00:00 - Fans of Colombia and Argentina the CONMEBOL Copa America 2024 Final match between Argentina and Colombia at Hard Rock Stadium on July 14, 2024 in Miami Gardens, Florida. The Copa America soccer final between Argentina and Colombia on Sunday saw chaotic scenes at the Hard Rock Stadium in Miami — and is raising questions about the United States' preparedness to co-host the 2026 World Cup. The stadium, home field of the NFL's Miami Dolphins with a capacity of more than 65,000 spectators, was overwhelmed when non-ticketed fans rushed the gates, climbing through security railings and air vents to get in. Facilities and barriers were damaged, ticketed fans were boxed out from their seats by non-paying crowds, and the game was ultimately delayed more than 80 minutes, ending after midnight with an Argentinian victory over Colombia. (A halftime show was also added this year in a first for the league, further extending the event.) "It was, without a question, not just an embarrassment, it was absurd," said Anjali Bal, Babson College associate professor of entertainment and sports marketing. Miami-Dade Commissioner Oliver Gilbert said at a press conference Monday that law enforcement is working with promoters and the stadium to make sure the incident doesn't happen again. "We host big events. Well, I've never seen anything like I saw last night, and we're not going to see that again," Gilbert said. A total of 27 arrests were made, including that of Colombia's soccer federation president Ramón Jesurún and his son, who were accused of attacking three security guards who stopped them from accessing the field, according to the arrest form. Miami-Dade Fire Rescue said it responded to a total of 120 incidents at the stadium and the surrounding area, 116 of which were for medical calls.
The Unwarranted Fear Of Venture Debt: Dispelling Unconscious Biases In Startup Financing 2024-07-17 21:22:00+00:00 - Loading... Loading... Venture capital has long been the oxygen that fuels the growth of start-ups, yet it comes with its own share of drawbacks, primarily in the form of equity dilution. Founders find themselves giving up more control with each funding round and progressively distancing themselves from the very companies they brought to life. Here lies the paradox in modern startup financing: despite the availability of venture debt—a less dilutive alternative—many companies hesitate to leverage it. This is influenced by antiquated biases and a deep-seated aversion to debt. And this unfounded fear, steeped in historical precedents and cultural narratives, needs to be acknowledged and reevaluated. Debt, in its essence, is often viewed through a prism of skepticism and fear. This perspective is not new. Historical texts and teachings, such as those found in the Bible, have long warned against the perils of debt. Proverbs 22:26-27 advises against becoming “one of those who enter agreements, who put up security for loans,” cautioning that failure to repay can lead to dire consequences. While these admonitions were apt in an era when financial systems were rudimentary and punitive, they are less relevant in today’s sophisticated economic environments. Yet, these ancient warnings continue to color the perceptions of debt in the modern corporate psyche—discouraging its use even when it could serve a beneficial purpose. Venture debt is designed to complement venture capital as a strategic instrument to minimize equity dilution, especially for companies that possess a clear path to profitability. It allows founders to retain more control over their company while still securing the necessary capital to grow. Despite this, the startup ecosystem remains wary, and the roots of this wariness lie not only in historical prejudices but also in a lack of understanding of venture debt’s potential benefits and its operational mechanics. The reluctance to embrace venture debt is particularly perplexing given its advantages. It is typically structured with the unique needs of the company in mind, and it does not necessitate the surrender of board seats or the relinquishing of significant control over strategic decisions—a critical consideration for founders who wish to steer their venture’s direction. The bias against venture debt often reflects a broader hesitancy towards any form of debt, fueled by high-profile failures and bankruptcy tales that captivate public attention much more than narratives of prudent debt management and success. However, such views overlook the myriad successful ventures that have harnessed debt judiciously to navigate growth phases while safeguarding founder control and stakeholder value. In these cases, debt was most appropriate (and useful) for only the strongest companies with clear paths to profitability or exit. The collapse of Silicon Valley Bank (SVB) provides a key example in this light. When it failed in March 2023, it not only impacted the startup ecosystem’s bank accounts but also severely diminished the credibility of venture debt among those unfamiliar with the bank’s lending practices. In short, SVB was the preeminent bank that provided credit to really early-stage companies based on their venture capital sponsors rather than their business metrics or fundamentals. This approach made their loans inherently risky (compared to late-stage loans), as these companies often lacked the typical metrics or collateral required for underwriting. Nonetheless, the spotlight of SVB’s collapse led many to believe that all players in the venture debt community issued similar high-risk loans despite the truth being the opposite of SVB’s model. What is needed today is a cultural shift within the startup community towards a more nuanced understanding of financial instruments, especially venture debt, and education as well as successful case studies can play pivotal roles in this transformation. Founders must also critically assess their financing strategies and weigh the long-term risks of equity dilution against the potential benefits of venture debt. By highlighting examples where venture debt has enabled startups to thrive without the heavy cost of equity dilution, the industry can begin to dismantle outdated perceptions. Overall, the startup community must awaken to the reality that unconscious biases extend into financial instruments and capital raising practices. Embracing venture debt could well be the key to a new era of startup financing where founders maintain greater control and companies are unburdened by the heavy yoke of unnecessary dilution. This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.