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One Tech Tip: Protecting yourself against SIM swapping 2024-07-14 04:07:53+00:00 - NEW YORK (AP) — SIM-swapping is a growing form of identity theft that goes beyond hacking into an email or social media account. In this case, the thieves take over your phone number. Any calls or texts go to them, not to you. Any protections consumers enabled to secure access to their financial accounts, such as two-factor authentication texts, now can aid attackers and lock out owners. Experts say these scams will only increase and become more sophisticated, while the data show they are on the rise. The FBI Internet Crime Complaint Center reports that SIM-swapping complaints have increased more than 400% from 2018 to 2021, with associated personal losses estimated to be more than $68 million. Rachel Tobac, CEO of online security company SocialProof Security, says the numbers are probably a vast underestimate because most identity thefts are not reported. How does the scheme work? Criminals use personal information about their victims — phone numbers, addresses, birthdays and Social Security numbers — obtained through data breaches, leaks, dark web purchases or phishing scams to impersonate the victims as they contact their mobile carriers. They will claim the original phone and SIM card were damaged, lost or sold accidentally and ask for the number to be associated with a new SIM, or eSIM, card in their possession. Once this is done, the phone number belongs to the criminals, along with the ability to receive text messages or calls to verify accounts. Prevention is the best form of protection, according to cybersecurity experts. The tricks and habits security experts say help prevent SIM-swapping are what they have long been recommending for online security in general. They include the following: Better password habits If your credentials are caught in a cyber breach, the hackers could try using the stolen passwords to get into other services to gather the personal data they need to pull off a SIM swap. If you’ve been using the same or similar login information for multiple websites or online accounts, make sure to change it. If criminals pilfer your password from one service, they can try it on your other accounts and easily get into all of them. If you find it too hard to memorize your various credentials, consider a password manager. Also use strong passwords that include letters, numbers and symbols. The longer they are, the better. Some experts say they should be 16 characters. Multifactor authentication without texts Add biometrics or multifactor authentication apps and devices that do not involve texting. These methods often use separate login methods and encryption that are not tied to your phone’s identity, making them more difficult for criminals to access. AT&T also advises contacting your carrier to set up a unique passcode to prevent significant account changes such as porting phone numbers to another carrier. Your carrier may already have other protections in place to protect against SIM swapping, so it’s worth calling them to ask. Watch out for phishing schemes (especially at work) Criminals will use email or text messages to try to trick you into giving them your personal and financial information or to expose your workplace to possible attacks, and it’s incredibly effective. In its annual State of the Phish report, the cybersecurity firm Proofpoint found a majority of data breaches across the world still center on human lapses. If you suspect you have received a possible phishing message or email, report it. Most of the popular email platforms have buttons or functions specifically for reporting phishing attempts. If you’re at work, follow the advice from your company’s information security team. Steps to take if you’re a victim All major U.S. carriers have web pages advising victims how to report a SIM fraud. But an Associated Press reporter, who recently was hit by such an attack, advises that victims should be diligent in working with the carrier to fix the issue. Filing complaints with the Federal Trade Commission, the Internet Crime Complaint Center or with their state attorneys general can possibly expedite recovery efforts. If card payment numbers were stolen, inform your bank or credit card company, explaining that your card is at risk of fraud and asking the company to alert you to any suspicious activity. You can also notify credit agencies, including the three main firms: Equifax, Experian and TransUnion. They can freeze your credit, which restricts access to your credit report and makes it hard to open new accounts or issue a fraud alert and will add a warning to your credit report encouraging lenders to contact you before lending money.
After Beryl, Houston-area farmers pull together to face unique challenges 2024-07-14 04:04:12+00:00 - PORTER, Texas (AP) — Hurricanes cause trouble for everyone, but farmers have a whole other list of problems. Beryl has been no exception: Over the past week, the storm damaged crops, soaked rabbits and chickens, terrified goats, put horses at risk of developing colic and left cows without fences to keep them penned in. And the lasting power outages have been particularly devastating for animal caretakers who urgently need water, feed and supplies. But with trees downed, power out, gas in short supply and many local businesses temporarily out of commission, farmers in the Houston area have had to find ways to cope, relying on each other, neighbors and community resources to recover. “We all take care of each other,” said Tracy Hord, 57, who owns an equestrian facility with her husband Greg on the outskirts of Houston, which boards and trains horses. “The normal public doesn’t know what it takes ... to take care of this. You have to keep it moving because the horses can’t do without or your livestock can’t do without.” They already have driven about an hour each way into the city this week as they scrambled to get enough bedding, the wooden shavings that line the horses’ stalls. Extreme weather like drought, floods and storms all hit farmers hard, especially those with small outfits, and scientists expect many of those nasty conditions to get worse as a result of climate change. In the areas of Texas closer to the coast, there are more individual producers with relatively smaller farms, said Monty Dozier, program director for the Texas A&M agricultural extension’s Disaster Assessment and Recovery Unit, which checks in on farmers after destructive weather events. Dozier estimated there are between 14,000 and 20,000 head of cattle alone in the area between Houston and Beaumont. That many livestock usually can’t be evacuated before a storm. Occasionally people will move horses or other smaller animals, but otherwise farmers have to prepare by moving their herds to higher ground and making sure they have a way to shelter in place. Catherine Ward, the owner of One Acre Farm, which offers youth education and autism therapy about 35 miles (56 kilometers) from Houston in Porter, Texas, watched the reactions of her 88 animals as wind gusts bent, snapped and toppled trees. “The goats were able to come into shelter,” Ward said. “Every time I would go to the back door to look, they’re all looking like, ‘Momma, please come help. We don’t know what’s happening.’” After Beryl passed, Ward surveyed the damage and found that a tree had fallen on the roof of the chicken and rabbit pen, fences were broken and metal sheets had been twisted and tossed to the ground. The farm remained without power on Friday and the steady hum of a portable generator filled the air. The Texas legislature in 2019 gave funding to Texas A&M University to create a system for farmers to respond to disasters in line with its recommendations after Hurricane Harvey slammed the state in 2017, Dozier said. Since then, the program’s 26 agents, supported occasionally by more agents from the university’s agricultural extension arm, have helped members of the agriculture industry respond to wildfires, tornadoes, floods and more across the state. Producers can fill out a damage survey online, requesting additional resources, advice or an in-person visit if they need it. Texas A&M’s response team provides pickup points with animal supplies after storms but also tries to move out quickly once local operators are back in business. That’s someone’s livelihood too, Dozier said. One such operator, Chuck Ridder, has owned Knox Drive Farm & Feed for about 20 years and says that whenever something like this happens, he will open even without electricity. “We know animals have to eat,” he said. Before Beryl hit, Ridder moved hundreds of bags to storage areas several feet off the ground in case the warehouse was flooded. Luckily, he said, water never entered his warehouse. But Beryl’s strong winds damaged one of the warehouse’s metal doors. He had to put the door back in place as the storm was still passing through Porter to ensure rain and wind didn’t damage his feed supply inside the warehouse. Many Texas farmers aren’t strangers to bad weather. “One of my producers told me, ‘If you farm in Texas, you need to learn to farm in a continuous drought interrupted by times of flooding,’” Dozier said. “That’s the mindset that you need to have.” It’s a challenging reality that means people have to trust each other in hard times, and many of them do. Customers, neighbors and friends alike come through Ridder’s doors knowing they’ll likely be able to get what they need even when the power is out. One of Ridder’s good friends, Tommy Johnson, is a longtime customer who keeps his 14 South African Boer goats in a pen by Ridder’s warehouse. Ridder said Johnson knows where the key is located to unlock the back door of his business. “Anytime that they need something, just leave a note,” Ridder said. Ridder said when he needed a chainsaw to cut down some trees that were knocked down around his store and home, Johnson picked one up for him. “We lean on each other, try to help the best we can,” Johnson said. ___ Walling reported from Chicago. Follow her on X: @MelinaWalling. ___ The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.
The first Titanic voyage in 14 years is happening in the wake of submersible tragedy. Hopes are high 2024-07-14 04:03:06+00:00 - PORTLAND, Maine (AP) — The company that owns the salvage rights to the Titanic is undertaking its first expedition to the ship’s wreckage in years, and those involved in the mission said they have both heavy hearts and lofty goals for a trip happening a year after a submersible disaster involving another firm killed five people. RMS Titanic Inc., a Georgia-based firm, holds the legal rights to salvage the wreck of the ship, which sank in the North Atlantic Ocean in 1912. The company’s first expedition to the site since 2010 launched Friday from Providence, Rhode Island. The voyage arrives as the worldwide community of undersea explorers is still reeling from the deadly implosion of an experimental submersible en route to the Titanic in June 2023. The Titan submersible disaster killed all five people on board, including Paul-Henri Nargeolet, who was director of underwater research for RMS Titanic. This summer’s mission to the Titanic “means even more with the passing” of Nargeolet, known as “Mr. Titanic” by many, RMST Inc. president Jessica Sanders said. The expedition will use modern imaging technology and remotely operated vehicles to capture detailed images of the Titanic, the wreckage site and the debris field, RMST Inc. representatives said. “This monumental undertaking will allow us to document the Titanic in unprecedented detail and share new discoveries from the wreck site with the public, continuing the extraordinary work and passion of PH,” Sanders said. The ship headed to the site, the Dino Chouest, will take several days to reach the site and is slated to return around Aug. 13, said Jon Hammond, a spokesperson for RMST Inc. The work will allow the company to provide a comprehensive analysis of the current condition of the Titanic wreckage site and a detailed assessment of artifacts that can be safely targeted for future recovery, RMST Inc. representatives said. Nargeolet made more than 35 dives to the Titanic in his lifetime. The implosion also killed Titan operator Stockton Rush; two members of a prominent Pakistani family, Shahzada Dawood and his 19-year-old son Suleman Dawood; and British adventurer Hamish Harding. OceanGate, a company co-founded by Rush that owned the submersible, suspended operations a year ago. The U.S. Coast Guard convened a high-level investigation into what happened, but it has taken longer than expected and it’s unclear when the investigation will conclude. Undersea explorers are waiting to learn the results of the investigation and RMST Inc.'s trip to the Titanic site is an important milestone in the site’s exploration, said Katy Croff Bell, founder of the Ocean Discovery League. “The Coast Guard investigation is still ongoing and they have not released their results yet, so the final chapter in this episode has yet to come out,” Bell said. “One thing that has come out is there is perhaps more interest.” This month’s journey to the Titanic also will allow comparison to 2010 imaging, RMST Inc. representatives said. The mission also may result in discovery of new areas of the debris field, previously unknown marine life and new areas of deterioration that could provide unobstructed access to the interior of the ship, the company stated on its website. The vessel making the trip is equipped with two remotely operated vehicles that will be used to capture the first end-to-end mapping image of the wreck field and debris site, RMST Inc. said. The expedition will include “the highest resolution camera systems ever deployed at the site in an effort to bring new insights about the ship to the community,” said Evan Kovacs, an underwater cinematographer working on the mission.
What’s worse than thieves hacking into your bank account? When they steal your phone number, too 2024-07-14 04:01:56+00:00 - WASHINGTON (AP) — One Monday morning in May, I woke up and grabbed my cell phone to read the news and scroll through memes. But it was out of cell service. I couldn’t make calls or texts. That, though, turned out to be the least of my problems. Using my home Wi-Fi connection, I checked my email and discovered a notification that $20,000 was being transferred from my credit card to an unfamiliar Discover Bank account. I thwarted that transfer and reported the cell phone issues, but my nightmare was just starting. Days later, someone managed to transfer $19,000 from my credit card to the same strange bank account. I was the victim of a type of fraud known as port-out hijacking, also called SIM-swapping. It’s a less-common form of identity theft. New federal regulations aimed at preventing port-out hijacking are under review, but it’s not clear how far they will go in stopping the crime. Port-out hijacking goes a step beyond hacking into a store, bank or credit card account. In this case, the thieves take over your phone number. Any calls or texts go to them, not to you. When your own phone access is lost to a criminal, the very steps you once took to protect your accounts, such as two-factor authentication, can be used against you. It doesn’t help to have a bank send a text to verify a transaction when the phone receiving the text is in the hands of the very person trying to break into your account. Even if you’re a relatively tech-savvy individual who follows every recommendation on how to protect your tech and identity, it can still happen to you. Experts say these scams will only increase and become more sophisticated, and the data show they are on the rise. I am not the most tech savvy person, but I am a law-school educated journalist who specializes in finance reporting. Due to the very online nature of my job, I was taught all the methods of staying safe online: constantly changing my passwords with multi-factor authentication, signing out of apps that I don’t use regularly and keeping my personal information off the internet. Still, despite being safe, I was vulnerable to criminals. And it took a lot of time and legwork before I got my money and phone number back. The FBI Internet Crime Complaint Center reports SIM-swapping complaints have increased more than 400% from 2018 to 2021, having received 1,611 SIM swapping complaints with personal losses of more than $68 million. Complaints to the FCC about the crime have doubled, from 275 complaints in 2020 to 550 reports in 2023. Rachel Tobac, CEO of SocialProof Security, an online security company, says the rate of the crime is likely much higher since most identity thefts are not reported. She also says two-factor authentication is an outdated way of keeping consumers safe, since it’s possible to find anyone’s phone number, birthday and social security number through any number of public or private databases on the web. The ability of thieves to obtain your personal information was again made clear Friday when AT&T said the data of nearly all of its customers was downloaded to a third-party platform in a security breach two years ago. Although AT&T claims no personal information was leaked, cybersecurity experts have warned breaches involving telephone companies leave customers vulnerable to SIM swapping. As of now, switching numbers from one phone to another is easy and can be done online or over the phone. The process takes less than a few hours so long as a criminal has your personal information on hand. While consumers need to be smart about having a variety of different passwords and protections, consumers need to “put pressure on companies where its their job to protect our data,” Tobac said. “We need them to update consumer protection protocols,” she said, since two-factor authentication is not enough. FCC rules have recently changed to force companies to do more to protect consumers from this type of scam. In 2023, the FCC introduced rulemaking that require wireless providers to “adopt secure methods of authenticating a customer before redirecting a customer’s phone number to a new device or provider” among other new rules. Companies could require more information when a customer tries to port over a phone number to another phone — from requiring government identification, voice verification or additional security questions. The rules were scheduled to take effect on July 8, but the FCC on July 5 granted phone companies a waiver that delays implementation until the White House Office of Management conducts a further review. The wireless industry had sought the delay, stating among other reasons that companies need more time to comply. CTIA, which lobbies on behalf of the companies, said the new rules will require major changes in technology and procedures both within the wireless companies and in their interactions with phone manufacturers. But if the FCC rules had been in place, my phone number might have been harder to steal, experts say. Ohio State University Professor Amy Schmitz says the new FCC rules make it easier for consumers to protect themselves, but it is still reliant on action and awareness of the consumers. “I still question whether consumers will be aware of this, and will take action to protect themselves,” she said. It took ten days to get my number back from Cricket Wireless — and that wasn’t until I told company representatives that I was writing a story about my experience. In that period of time the scammer was able to access my bank account three times and eventually successfully transferred $19,000 from my credit card— even though I removed my number from the bank account, froze my credit, changed all my passwords, among other measures. Bank of America worked to reverse the $19,000 wire after I visited a branch near the AP bureau in Washington. Cricket apologized for the error and said in an email that its “expectation is to deliver a much better customer experience.” “Fraudulent port-outs are a form of theft committed by sophisticated criminals,” reads a company statement that was emailed to me. “We have measures in place to help defeat them, and we work closely with law enforcement, our industry and consumers to help prevent this type of crime.” An AT&T representative told me in an email that “all providers are working to implement the FCC’s new rules on port-outs and SIM swaps.” I’m still unsure of how this person got access to my accounts, whether through my social security number, phone number or date of birth, or possibly a recording of my voice. It was a hard lesson in how vulnerable we are when you lose control of our personal information that is so publicly available.
'A fundamental security failure': How did a gunman open fire on a Trump rally? 2024-07-14 03:54:00+00:00 - How does a gunman, in plain view of some spectators, manage to open fire on a former president at a campaign rally protected by federal and local law enforcement? That is the frightening and unanswered question facing the country — and security officials — after Donald Trump said he suffered a graze wound on his right ear while he was speaking in a field in Butler, Pennsylvania, and left the stage with a bloodied head. Secret Service personnel shot and killed the gunman, identified as Thomas Matthew Crooks of Bethel Park, Pennsylvania, immediately after he opened fire, the FBI said. A spectator was killed and two additional spectators were injured, but it was not immediately clear who shot them. The assassination attempt, in which Crooks fired multiple shots at the stage from a roof outside the venue’s security perimeter, appeared to be the result of a grave lapse, perhaps the biggest since President Ronald Reagan was shot and wounded outside a Washington hotel in 1981. Security experts said it was difficult, and perhaps impossible, to eliminate every threat, particularly with long-range weapons and outdoor events. But some said routine precautions should have prevented the shooter from getting onto the nearby roof. Steve Nottingham, a former SWAT commander in Long Beach, California, called Saturday’s shooting “a fundamental security failure.” He has worked security details for visiting world leaders, including presidents, and now trains officers on how to respond to critical incidents. He pointed at likely breakdowns in the pre-event scouting and real-time monitoring of places a gunman could shoot from. “They were behind the curve, because they should have had those places covered ahead of time,” Nottingham said. Jim Cavanaugh, a retired special agent in charge with the Bureau of Alcohol, Tobacco, Firearms and Explosives who has been on Secret Service details, said he was surprised that the shooter was able to occupy an elevated position within rifle range of the rally site. “Whenever I’ve been with them, every single high ground is taken by them or the local SWAT police,” Cavanaugh said. “There’s nobody allowed walking on rooftops. They command the high ground.” He said a high-powered rifle like an AR-15 can hit targets 200 yards away. Trump was about 148 yards from the rooftop where the shooter was found dead, NBC News found, based on an analysis of Google Earth images. Cavanaugh added: “Having been on Secret Service details, it’s amazing to me that somebody was on an elevated position that they didn’t know about.” Pennsylvania State Police Lt. Col. George Bivens defended the Secret Service at a news conference after the shooting. “It is incredibly difficult to have a venue open to the public and to secure that against any possible threat against a very determined attacker,” Bivens said. “That’s a huge lift.” “The investigation will really give us an opportunity to take a look at where any failures occurred and what can be done better in the future,” he added. The Secret Service did not immediately respond to a request for comment. The FBI is leading the investigation, including its crisis response team members and evidence response technicians, it said in a statement Saturday evening. Secret Service agents rush Donald Trump offstage after a shooting during a rally in Butler, Pa., on Saturday. Anna Moneymaker / Getty Images Last month, as the presidential campaign heated up, the Secret Service said it was increasing the size of the detail assigned to Trump. The protection was bulked up “to ensure the highest level of security for not only the event sites but the travel in between events,” Secret Service spokesman Anthony Guglielmi said at the time. Perhaps the first sign that something was going wrong as Trump spoke Saturday came when spectators said they noticed a man with a rifle bear-crawling on a nearby roof. One recalled trying to get the attention of law enforcement. “The police are down there running around on the ground. We’re like, ‘Hey man, there’s a guy on the roof with a rifle,’” the witness told BBC News. “And the police were like, ‘Huh, what?’ Like they didn’t know what was going on. We’re like, ‘Right here on the roof. We can see him from right here. We see him. He’s crawling.’” A couple of minutes later, the man opened fire, the witness said. Kevin Rojek, special agent in charge of the FBI’s Pittsburgh field office, said at a news conference that law enforcement was not aware of the man’s presence on the rooftop until he started firing. “It is surprising,” Rojek conceded when pressed by a reporter on the number of shots the gunman managed to fire. He referred questions about advance security precautions to the Secret Service. In the front row of the rally, attendees heard a series of pops and saw Secret Service agents jump on the stage. One, who identified herself as Erin, told NBC News that she saw blood on Trump’s ear. She did not fear for her own safety, she said. “We were only concerned about him,” she said, referring to Trump. Trump said in a post on Truth Social a couple of hours later that a bullet “pierced the upper part of my right ear.” “I knew immediately that something was wrong in that I heard a whizzing sound, shots, and immediately felt the bullet ripping through the skin,” Trump wrote. “Much bleeding took place, so I realized then what was happening.” Trump pumps his fist as he is rushed into a car at Saturday’s rally. Anna Moneymaker / Getty Images Former Secret Service agent Evy Poumpouras said it is impossible to eliminate every potential threat in a situation like Saturday’s. Outdoor rallies pose enormous security challenges given the availability of high-powered weapons, Poumpouras said. “Somebody can be out in the distance and really engage your target from a long range, and there are weapons out there that allow you to do this,” said Poumpouras, who protected multiple presidents, including Barack Obama and George W. Bush, during her 12 years with the Secret Service. “Let’s say you hunkered this whole area down. You’ve got the magnetometers; you’ve got the tactical element. Everything is locked and tight. How do you secure that outer perimeter? How far do you go? And can you cover everything? That’s a problem.” She added: “Even if somebody is in an elevated position or not, how do you secure all of those elevated positions when you have weapons with the capabilities that are able to shoot long distances? This is what you are up against.” Jillian Snider, a retired New York City police officer who was often detailed to political events, said it is routine for law enforcement to do a perimeter check extending a few hundred yards ahead of such an event. “That doesn’t mean that someone can’t sneakily make their way to one of those positions afterward, especially if it was someone who had done some preplanning,” said Snider, an adjunct lecturer at John Jay College of Criminal Justice. “There are a lot of places in that area to hide, and you can’t monitor every possible position.” “Someone who is that driven to do something like this will find a way to try and get the job done,” she added.
Renowned Fitness Guru Richard Simmons Dies At 76 2024-07-13 23:11:00+00:00 - Loading... Loading... The fitness industry is mourning the loss of one of its most iconic figures, Richard Simmons, who passed away at the age of 76, ABC News reported on Saturday. What Happened Simmons, a beacon of positivity and energy, recently celebrated his 76th birthday. His passing was confirmed by the Los Angeles Police Department, who found him at his home following a distress call from his housekeeper. Initial investigations point towards natural causes, with no signs of foul play. Simmons, who had been absent from the public sphere recently, sparked concern among his fans with a cryptic Facebook post in March, hinting at his impending death. He later clarified that his post was a metaphorical call to cherish each day, and not a literal proclamation of his death. Born as Milton Teagle Simmons, he became a household name in the fitness world during the 1970s and '80s. He gained fame for his Beverly Hills gym, Slimmons, his series of fitness videos, and his book series beginning with "Never Say Diet." Simmons was a familiar face on various talk shows and was the host of his own fitness show, "The Richard Simmons Show," which bagged four Daytime Emmy Awards. Why It Matters Simmons was more than a fitness expert; he was a beacon of positivity and an advocate for healthy living. His unique approach to fitness, which combined fun with exercise, made him a beloved figure in the industry and beyond. His death marks the end of an era in the fitness world. His influence, however, will continue to be felt through his numerous fitness videos, books, and the legacy he leaves behind at his gym, Slimmons. This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo: Shutterstock
Delta Changes Uniform Policy After Employees Seen With Palestinian Flag Pins 2024-07-13 21:45:42+00:00 - Two Delta Air Lines flight attendants seen in a social media post wearing pins depicting the Palestinian flag caused an online uproar, a rogue response from a Delta employee and a change to the company’s uniform policy. The image, reposted on Wednesday, showed the flight attendants in a plane aisle with small Palestinian flag pins affixed to their uniforms. The post characterized the pins as “Hamas badges.” The post prompted a wave of criticism on social media aimed at the airline. Soon after the images were published, the official Delta account on X responded in solidarity. “I hear you as I’d be terrified as well, personally,” read the comment. Soon after, Delta’s reply was gone. “On Wednesday, we removed a reply that was not in line with our values,” Delta said on social media. “We strive for an environment of inclusivity & respect for all, in our communities & our planes. The employee responsible no longer supports Delta’s social channels. We apologize for this hurtful post.”
What if the A.I. Boosters Are Wrong? 2024-07-13 12:00:02+00:00 - Despite the advent of personal computers, the internet and other high-tech innovations, much of the industrialized world is stuck in an economic growth slump, with O.E.C.D. countries expected to expand on aggregate just 1.7 percent this year. Economists sometimes call this phenomenon the productivity paradox. The big new hope is that artificial intelligence will snap this mediocrity streak — but doubts are creeping in. And one especially skeptical paper by Daron Acemoglu, a labor economist at M.I.T., has triggered a heated debate. Acemoglu concluded that A.I. would contribute only “modest” improvement to worker productivity, and that it would add no more than 1 percent to U.S. economic output over the next decade. That pales in comparison to estimates by Goldman Sachs economists, who predicted last year that generative A.I. could raise global G.D.P. by 7 percent over the same period. The bullish camp has great hopes for A.I. Sam Altman of the ChatGPT maker OpenAI sees A.I. wiping out poverty. Jensen Huang, the C.E.O. of Nvidia, the dominant maker of the chips used to power A.I., says the technology has ushered in “the next industrial revolution.”
Why This Banking Stock Might Be Nearing the Bottom of Its Cycle 2024-07-13 11:00:00+00:00 - The second quarter of the 2024 earnings season has just kicked off, and the financial sector is again under the spotlight. Bank stocks are leading the pack in letting markets know how the economy is doing so far into the year's second half. However, not all bank stocks are made equal. There are typically two extremes and a middle ground regarding exposure to the business cycle. Wells Fargo & Company Today WFC Wells Fargo & Company $56.54 -3.62 (-6.02%) 52-Week Range $38.38 ▼ $62.55 Dividend Yield 2.48% P/E Ratio 11.61 Price Target $59.52 Add to Watchlist On one side, there are investment banks, which are highly exposed to interest rates and the business cycle, as the level of mergers and acquisitions (M&A) activity is dependent on these same factors, and so are the profits in this business branch, these banks include names like Goldman Sachs Group Inc. NYSE: GS. On the other hand, commercial banks depend on the consumer cycle instead, with products like mortgages and credit cards. Get GS alerts: Sign Up This commercial area includes Wells Fargo & Co. NYSE: WFC, which just reported its second quarter 2024 earnings results, and markets are not reacting well. The shares of Wells Fargo are trading lower by 6.5% during the trading session. Still, despite this initial reaction to earnings, there are ways investors can support a thesis behind Wells Fargo stock nearing the bottom of its cycle. Wells Fargo's Product Line Primed for Growth in the Coming Quarters Considering that Wells Fargo operates heavily in the consumer sector, including products like credit cards and mortgages, investors should look deeper into the drivers that might help these segments bring more significant profits to Wells Fargo. According to the CME's FedWatch tool, the Federal Reserve (the Fed) is promising interest rate cuts that could hit the stock market as soon as September 2024. Thus, these products are filled with tailwinds that could create a high-demand trend. Lower interest rates mean lower credit card annual percentage interest (API) and cheaper mortgage rates. While lower interest rates on sold mortgages could affect the bank's net interest income (NII), the rising volume of originated mortgages will more than offset the lower interest income. There is another way for investors to gauge where the consumer side of Wells Fargo’s business is today: by looking into the credit quality levels today compared to the historical cycle for the bank. The primary metric for investors to look over is net charge-offs, meaning the number of loans (whether a mortgage or credit card) considered delinquent today. This metric is now worth $1.3 billion, up almost 100% from a year prior, when this gauge stood at only $764 million. More than that, the bank has had to tie away more capital into provisions for further (potential) credit losses, which are now $1.2 billion. The bank also reports lower revenues across most consumer products. Home lending revenues are 3% lower, with credit card revenues matching this decline. The hit was even worse for auto loans, probably due to the rise in vehicle prices and the interest rates charged on auto loans today. That segment declined by 25% in the year. Optimism Remains High for the Future of Wells Fargo Stock However, despite how risky the present – and arguably the future – may look for Wells Fargo’s businesses, those on Wall Street still see the upside potential on a cycle turnaround. Analysts at Evercore felt comfortable slapping a $70 price target for Wells Fargo stock, daring it to rally by 24.5% from where it trades today. Despite the intricacies of the consumer cycle today, the bearish side of the market is showing signs of capitulation. Wells Fargo stock’s short interest plummeted by 20.9% during the past month alone, showing that bearish traders aren’t willing to risk their capital on the potential upswing in the consumer cycle. Wells Fargo & Company MarketRank™ Stock Analysis Overall MarketRank™ 4.65 out of 5 Analyst Rating Hold Upside/Downside 5.3% Upside Short Interest Healthy Dividend Strength Moderate Sustainability -0.35 News Sentiment 0.64 Insider Trading N/A Projected Earnings Growth 7.98% See Full Details The rise in credit delinquencies shouldn’t be taken as a dooming factor for Wells Fargo stock, as other banks like Citigroup Inc. NYSE: C and J.P. Morgan Chase & Co. NYSE: JPM also reported rising delinquency rates and charge-offs. So, this isn’t a company-specific issue but rather an industry-wide problem. Isolating that trend from Wells Fargo’s business, investors can project the turnaround in credit cards and mortgages to justify Evercore analyst price targets today. The Mortgage Bankers Association (MBA) mortgage purchase index now shows another leg for investors to lean on. The index reading of 144.3 shows the lowest level since the aftermath of the 2008 financial crisis, meaning that it is more likely than not that the cycle will bring a new wave of upside mortgage applications, which is good for Wells Fargo’s mortgage origination business. Before you consider The Goldman Sachs Group, 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 The Goldman Sachs Group wasn't on the list. While The Goldman Sachs Group currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
MarketBeat Week in Review – 7/8 - 7/12 2024-07-13 11:00:00+00:00 - Stocks took investors on quite a ride this week, with the S&P 500 hitting a new record high, then falling back on Thursday before rallying to end the week. The driving force continues to be the hope that the Federal Reserve will cut interest rates starting in September. The problem is that the latest readings on inflation are sending mixed messages. A cooler-than-expected CPI number created a sell-the-news event. However, a move higher in the Russell 2000 is fueling optimism that the long-awaited sector rotation is underway. A slightly hotter reading on the producer price index (PPI) suggests that inflation will be around longer than we’d like. Next week will bring the first full weeks of earnings reports. Investors will get a preview of several sectors as names like D.R. Horton Inc. NYSE: DHI, Johnson & Johnson NYSE: JNJ, Kinder Morgan Inc. NYSE: KMI, Domino’s Pizza Inc. NYSE: DPZ and Netflix NASDAQ: NFLX all report. For many of these companies, investors will pay close attention to guidance. And so will the MarketBeat team of analysts. Here are some of our most popular articles from this week. Get D.R. Horton alerts: Sign Up Articles by Jea Yu This week, as part of our Options Trading series, Jea Yu helped traders understand the mechanics of a diagonal debit spread, which is referred to as a poor man’s covered call. You’ll learn what it is, when you may want to use it, and examples of how it works. Yu also wrote about the price action in Baidu Inc. NASDAQ: BIDU stock. Shares of the company commonly referred to as “the Google of China” recently bounced off 52-week lows. Yu explains the opportunity and at what price investors may want to get involved. Weight loss drugs continue to be among the best-performing stocks in 2024. One of these companies Eli Lilly & Co. NYSE: LLY is starting to provide users with evidence that the semaglutide active ingredient in its GLP-1 drugs is superior to the competition. If that continues, there may be a much higher upside for LLY stock. Articles by Thomas Hughes 2024 has been the year of the stock split. While this action doesn’t change the fundamental value of a company, stocks that split have a history of moving higher in the months after the split. With that in mind, Thomas Hughes wrote about three stocks that, for different reasons, could be the next to split their stock. Hughes also checked in on PepsiCo Inc. NASDAQ: PEP, one of the first companies to report quarterly earnings. The company is a forerunner among consumer staples stocks. It maintained guidance at what Hughes believes may be a cautious level, making this an opportunity for investors to buy the dip on this dividend aristocrat. And if a sector rotation is truly underway, one area risk-tolerant investors may want to watch is the biopharmaceutical space. Hughes writes about three pharmaceutical stocks that have upcoming catalysts for higher prices. Articles by Sam Quirke You may be reading this on your smartphone, which may be putting you in touch (literally) with Corning Inc. NYSE: GLW, a leading manufacturer of glass substrates, liquid crystal displays, and organic light-emitting diodes used in our favorite electronics, including flat-panel TVs and smartphones. GLW stock is up nearly 50% in 2024, and Sam Quirke explains why the stock may have room to run. Quirke was also looking at the recent dip in Domino’s Pizza stock. The company continues to show strong fundamentals, but the stock has pulled back after reaching a record high earlier this year. Domino’s reports earnings next week; good numbers and guidance could send DPZ stock higher. This may be the time to buy the dip. Articles by Chris Markoch Another week and more news to stir the pot on Palantir Technologies, Inc. NYSE: PLTR. This week, Chris Markoch explains why the company’s recently announced partnership with Oracle Corp. NYSE: ORCL is the latest, but not the only, catalyst that could continue to give the bulls the upper hand even with PLTR stock up 68% in 2024. Articles by Ryan Hasson Bank and finance stocks traditionally kick off earnings season. Investors are paying particular attention to this sector as lower interest rates may send prices much higher. This week, Ryan Hasson looked at three financial stocks that investors may want to watch closely for signs of a breakout. Hasson also examined the biopharmaceutical sector. In this case, he analyzed the reason behind the 400% run-up in the Soligenix Inc. NASDAQ: SNGX stock price. The company, which develops and commercializes products to treat rare diseases, gave investors an interim update that showed promising results for its HyBryte treatment for early-stage cutaneous T-cell lymphoma. Articles by Gabriel Osorio-Mazilli Buying and holding NVIDIA Corp. (NASDAQ; NVDA) isn’t a bad investment strategy, but if you’re looking for chip stocks that may have more short-term upside, you’ll want to read this article from Gabriel Osorio-Mazilli to get two semiconductor stocks with lower valuations than NVIDIA and plenty of upside. Oil prices have been holding above $80 a barrel, and if the Federal Reserve cuts rates, they could move much higher. This week, Osorio-Mazilli analyzed three of the top oil stocks investors should consider for oil’s seemingly inevitable move higher. Osorio-Mazilli reminds investors that there’s often no substitute for simplicity. That means buying quality companies when they’re trading at massive discounts. That's the case with the stock of these three highly profitable companies, which may be ready to shoot higher after they report earnings. Articles by Leo Miller The Boeing Co. NYSE: BA has been making news for all the wrong reasons this year. However, Leo Miller explains that investors who may be partial to a “so bad it’s good” narrative just got served some red meat. The beleaguered company is acquiring Spirit AeroSystems Holdings Inc. NYSE: SPR in an effort to dampen concerns about quality control at Boeing. And to close this week, many people love roller coasters when they're not part of their stock portfolios. You may be able to get a thrill from Six Flags Entertainment NYSE: SIX now that it has finalized its merger with Cedar Fair L.P. NYSE: FUN, which creates one of the largest theme park operators in North America. Before you consider D.R. Horton, 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 D.R. Horton wasn't on the list. While D.R. Horton currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
How Janet Yellen Became an Unlikely Culinary Diplomat 2024-07-13 09:02:06+00:00 - There was mayonnaise mixed with ants at a gastronomic taqueria in Mexico City. The garlic at a Persian restaurant in Frankfurt was aged 25 years. And, yes, the magic mushrooms in Beijing were hallucinogenic. This isn’t an Anthony Bourdain travel show but rather a taste of what Janet L. Yellen, the Treasury secretary, has been eating on the road over the more than 300,000 miles she has logged over the last three years as she has been grappling with inflation and devising new ways to cripple the Russian economy. “It’s not like it’s a scheme to conduct some sort of diplomacy,” Ms. Yellen, 77, said during an interview in June over scrambled eggs with onions and home fries at Sarge’s Delicatessen and Diner in New York City. “Nevertheless, it does seem to have had that impact.” Ms. Yellen’s food adventures have become the subject of global fascination over the past year, with local and social media lighting up about where and what she eats. The intrigue has been a surprising twist in the tenure of Ms. Yellen, an economist and former Federal Reserve chair, who unlike most previous Treasury secretaries prizes mixing in cultural experiences with the grind of government travel.
Here's how to find out if your data was stolen in AT&T's massive hack 2024-07-13 01:46:00+00:00 - If you're one of AT&T's cellular customers, you can check your account to see if your data was compromised as part of the massive breach the telecom giant announced on Friday. If you were an AT&T customer between May 1, 2022 to Oct. 31, 2022, it's likely your data was involved, given that the company said "nearly all" its cellular customers' records were gathered by hackers during that time. The breach also includes records from Jan. 2, 2023 for a "very small number of customers," AT&T said. But customers can check if their data was compromised by logging into their accounts, according to AT&T. "When customers log in, they can see if their data was affected. They can also request a report that provides a more user-friendly version of technical information that was compromised," an AT&T spokesperson told CBS MoneyWatch. The company also said it will alert customers who were impacted via text, email or U.S. mail. The company isn't providing identity theft protection to customers at this time, the company spokesperson told CBS MoneyWatch. AT&T said customers can visit att.com/DataIncident for more information. The compromised data involves records of calls and texts for AT&T customers, but doesn't include the content of the calls or texts, or personal information such as Social Security numbers, birth dates or other personally identifiable information. Why did AT&T wait to alert customers? Under U.S. securities regulations, companies must disclose data breaches within 30 days of learning about the security problem. AT&T said that it learned about the hack in April, but delayed informing customers because it was working with agencies such as the Department of Justice and the FBI, which determined that disclosing the breach could cause security risks. "The breach is considered a national security concern because these call logs reveal social and/or professional networks of people," said Patrick Schaumont, professor in the Department of Electrical & Computer Engineering at Worcester Polytechnic Institute, in an email. He added, "If person A has a role relevant to national security, then person A's social network is a liability. So, person A's call log must be kept secret. That's why the Department of Justice prevented AT&T from disclosing the breach until now." AT&T hasn't revealed the identity of the hacker or hackers responsible, but noted that one person has been apprehended in connection with the breach.
AT&T says hackers accessed records of calls and texts for nearly all its cellular customers 2024-07-13 01:25:00+00:00 - AT&T on Friday disclosed that hackers had accessed records of calls and texts of "nearly all" its cellular customers for a six-month period between May 1, 2022 to Oct. 31, 2022. In its statement, AT&T said the compromised data doesn't include the content of the calls or texts, or personal information such as Social Security numbers, birth dates or other personally identifiable information. The company said hackers downloaded the data "from our workspace on a third-party cloud platform." The hack also includes records from Jan. 2, 2023 for a "very small number of customers," AT&T said. The telecom giant said that it learned about the illegal download in April, and that it is working with law enforcement, noting that "at least one person has been apprehended." While the files don't include call or text content, AT&T said the data identifies telephone numbers that an AT&T number interacted with during the periods. "At this time, we do not believe that the data is publicly available," AT&T said in the statement. This data breach is separate from one disclosed earlier this year by AT&T, the company told CBS MoneyWatch in an email. In that case, hackers have stolen personal information for millions of current and former AT&T customers, with the fraudsters sharing the data on the dark web. Even though the breach didn't include personally identifiable information, some security experts warned that any information could help hackers gain access to more data, opening the door to fraud. "These types of identity-based attacks that exfiltrate customer records can allow attackers to piece together the personal data of individuals, including names, phone numbers, addresses and financial and Social Security details, placing millions of people at risk for identity theft or fraud," said Dan Schiappa, chief product and services officer at Arctic Wolf, a cybersecurity company. Companies are required to disclose security breaches to customers within 30 days of becoming aware of an incident, according to U.S. securities regulations. But when AT&T reached out to the FBI about the breach, the agency authorized a delay because of concerns about security risks, the FBI told CBS News in a statement. The FBI noted that after learned of the breach, it worked with AT&T as well as the Department of Justice to investigating the incident. In a separate statement, the Justice Department said it determined that a delay in publicly disclosing the incident was warranted because it could "pose a substantial risk to national security and public safety." On Friday, the U.S. Federal Communications Commission also said it is investigating the breach. AT&T data breach: Was I affected? AT&T said it will alert customers who were impacted via text, email or U.S. mail. It also said people could log into their account, where they'll be able to see if their data was affected. Customers "can also request a report that provides a more user-friendly version of technical information that was compromised," a spokesperson told CBS MoneyWatch. AT&T said customers can visit att.com/DataIncident for more information. Is AT&T providing identity theft protection? No, AT&T said it's not providing additional protection services at this time. However, it warned customers to be cautious about email or text requests that ask for personal, account or credit card information. "For example, bad actors will often send emails that try to get you to click on links that contain malicious software (known as 'phishing')," the company said. "Another technique bad actors use involves sending text messages that attempt to get recipients to reveal important information like passwords or account information ('smishing')." AT&T recommends that people only open texts or emails from people they know, and advises not to reply with personal information to any text or email from someone you don't know. It also recommends that customers go directly to a company's website rather than clicking on a link in a message or email, since scammers sometimes build fake websites that are designed to look like the real thing. "In case of suspicious text activity, you may forward it to us so that we can act. Get step-by-step instructions to report unwanted text messages by following this link. Messages forwarded are free and will not count toward your text plan," the company said.
Delta apologizes after reacting to post calling employees' Palestinian flag pins "Hamas badges" 2024-07-12 20:21:00+00:00 - Delta Air Lines on Friday issued an apology after it echoed the sentiment of a social media post disparaging staffers wearing Palestinian flag pins on their uniforms. An X user posted images of two Delta employees wearing the pins, suggesting that the imagery made the traveller uncomfortable. "Since 2001 we take our shoes off in every airport because a terrorist attack in US soil. Now imagine getting into a @Delta flight and seeing workers with Hamas badges in the air. What do you do?" the X user wrote. In a since deleted post, Delta responded from its own X account. "I hear you as I'd be terrified as well, personally. Our employees reflect our culture and we do not take it lightly when our policy is not being followed," Delta wrote, according to a screenshot of the exchange shared by the Council on American-Islamic Relations (CAIR). CAIR national deputy director Edward Ahmed Mitchell said Delta's response was reprehensible and called on the airline to issue an apology. "Whether this racist post on Delta's X account was approved or unauthorized, Delta must apologize and take steps to educate its employees about this type of dangerous anti-Palestinian racism. Bigotry against Palestinian-Americans is absolutely out of control in workplaces and at schools – and it must stop," he said in a statement. "Not in line with our values" Delta, for its part, issued a statement saying its controversial reaction was "mistakenly" posted to X. Delta removed its own comment "because it was not in line with our values and our mission to connect the world," a spokesperson told CBS MoneyWatch. "The team member responsible for the post has been counseled and no longer supports Delta's social channels. We apologize for this error." Delta added that the two employees who were photographed wearing the pins were in compliance with its uniform policy, and that they still work for the airline. Moving forward, though, employees will only be permitted to wear U.S. flags on their uniforms, Delta said. The new policy goes into effect July 15. "Previously, pins representing countries/nationalities of the world had been permitted," Delta said. "We are taking this step to help ensure a safe, comfortable and welcoming environment for all. We are proud of our diverse base of employees and customers and the foundation of our brand, which is to connect the world and provide a premium experience," the airline added.
Paris Olympics ticket scams rise ahead of the summer games. Here's what to look out for. 2024-07-12 19:35:00+00:00 - Cybercriminals are launching websites to try to sell fake tickets to the Paris 2024 Summer Olympic Games and looking for other ways to scam unsuspecting tourists. They're pouncing on the opportunity to dupe hopeful spectators into believing they're paying for access to sporting events, when in reality, the criminals are just after consumers' credit card information. This type of crime is currently pervasive, with France's national police force saying it has identified more than 300 such sites. Many of the scam sites originate from outside the nation, according to French media reports. Law officials have successfully taken down at least 50 of them. Olympics and Paris-related scams aren't limited to illicit ticket sales, though, or to the internet. Criminals are masterminding all manner of schemes, including hacking public wifi networks, creating fake listings for accommodations and stealing tourists' valuables like cell phones, wallets and watches. On the ticket scams front, the fraudulent websites often contain some combination of the words "Paris", "Olympics", or "2024," but are not official ticketing partners. Instead, they are phishing websites that mimic the Olympics' official site. "They'll sell fake tickets or tickets they don't actually possess at inflated prices, leaving buyers without valid entry to events they pay for," Zulfikar Ramzan, chief scientist at digital security company Aura, told CBS MoneyWatch. "They'll set up fake websites, send fake emails to guide people to websites that are made to look legit with the Olympic logo and look pixel perfect, so to speak, to trick people to give away their password and credit card information." Fake apartment listings Scammers are also creating fake websites with photos of accommodations that don't reflect reality, or advertise a hotel or rental that may not even exist. "Scammers create fake listings, and try to overcharge for accommodations that might not exist or be as advertised," Ramzan said. Again, the ultimate goal again is to obtain foreigners' personal payment details. For this reason Ramzan encourages travelers to book their stays through trusted channels like Airbnb, or a hotel's website. "Avoid making payments outside of secure channels to prevent, or remediate, fraud if it were to occur," Ramzan said. Beware of public wifi networks It can be worth paying for an international roaming pass from your mobile carrier in order to make calls, send messages and browse the internet while abroad to avoid data theft. That's because connecting to public wifi can lead to potentially devastating consequences as criminals could be eavesdropping and intercepting personal data, according to Dimitri Sirota, CEO of BigID. For instance, a 10-day pass from T-Mobile costs $35, while AT&T offers customers an international pass for $12 a day that lets them use their phone like they would at home. "Avoid connecting to unnecessary open Wifi networks," he told CBS MoneyWatch. Physical theft Leave your Apple Watch and other devices at home, if you can, Sirota also advises. "Minimize the devices you take with you if you can, as people will try to physically steal them or get malware on them. If you don't have to take a laptop, don't," he said. "Like at any large event, there's a physical risk of having mobile phones and wallets stolen when you're just milling around," he said. Thieves will be looking to rip off visitors as they commute to and from Olympic event stadiums via the metro or on buses. Amanda Rollins, who runs an Instagram account called @AmericanFille and calls herself a "France education influencer," warns her followers of some of the most common physical scams to be alert to in the City of Light. She offers general rules of thumb like, "Never feel obligated to converse with solicitors in the street," and "Remember, a person only accepting a cash payment for a normal service is a red flag." And while not quite a scam, some Parisian restaurants are eager to take advantage of American tourists in particular, who are accustomed to leaving gratuity with meals. Keep in mind that restaurant bills in Paris automatically include a service fee of 15% to cover servers' wages, and diners typically only leave a couple of euros extra, referred to as a "pourboire" (literally meaning "for drink").
Beastie Boys sue Chili's parent company for copyright infringement 2024-07-12 18:54:00+00:00 - NYC DOT releases Beastie Boys Square street signs in honor of album anniversary NYC DOT releases Beastie Boys Square street signs in honor of album anniversary 00:29 Brinker International tried to ill without license, according to a new lawsuit filed by iconic rap group The Beastie Boys. The Beastie Boys are suing the parent company of Chili's in a case that accuses the chain restaurant of running an advertisement that used the hip-hop trio's smash hit "Sabotage" without permission. In a federal case filed Wednesday in New York, the acclaimed rap-rock group, who rose to fame in the '80s with the release of their debut album "Licensed to Ill," allege Brinker International created a Chili's ad that used significant portions of "Sabotage" and ripped off the song's music video. Brinker International did not immediately return an email seeking comment. The court filings did not list an attorney for Brinker. Debuting in 1994 on the band's fourth album, "Ill Communication," the song "Sabotage" became a huge hit for The Beastie Boys. Its accompanying music video, where the group's three members donned wigs, fake mustaches and sunglasses in a parody of 1970s crime television shows, is one of the most recognizable in the genre. The lawsuit accuses Brinker of creating a Chili's social media ad in 2022 that used parts of the song alongside a video of three people wearing 1970's-style disguises stealing ingredients from a Chili's restaurant. The case was filed by surviving group members Adam "Ad-Rock" Horovitz and Michael "Mike D" Diamond, along with the executor of the estate of Adam "MCA" Yauch, who died of cancer in 2012 at age 47. Yauch, in his will, specifically barred the use of his music in advertisements. In 2014, the Beastie Boys won $1.7 million in a copyright violation case against the maker of Monster Energy drink for the company's unauthorized use of one of the group's songs. In a separate ruling, Monster was ordered to pay an addition $668,000 of the the Beastie Boys' $2.4 million legal fees from the trial. The Beastie Boys, inducted into the Rock and Roll Hall of Fame in 2012, have turned out four No. 1 albums and sold more than 40 million records. Last year, the corner of Ludlow and Rivington streets in New York City was officially renamed Beastie Boys Square. The intersection is featured on the cover of the group's second album, "Paul's Boutique."
Inflation may be cooling, but car insurance rates are revving up. Here's why. 2024-07-12 17:10:00+00:00 - Kayla Mills spent most of this year driving a Honda HRV, but last month she decided to return the vehicle to the dealership. Her reason? The $520 a month car insurance bill no longer fit her budget. "I can pay it, but being able to afford it while also affording the rising costs of everything else going on, I made an executive decision to let go of my car," the Massachusetts resident said. Mills isn't the only one feeling the pinch of car insurance payments. Not only has overall inflation grew 3% in June compared with a year ago, but auto insurance has gone up a whopping 19.5%, according to the most recent Consumer Price Index data. The national average for full coverage car insurance is nearly $2,300 a year as of July, or $190 a month, according to data from personal finance website Bankrate. But it wasn't the increase alone that bothered Mills. She said she ultimately returned the HRV because her insurance increased without explanation from her provider. So what was the reason for the rate increase? According to one insurance expert, there are three reasons why auto rates are going up, even if your own driving record hasn't changed. Inflation hits car insurance First, the cost insurance providers pay to repair vehicles after an accident — like mechanic hours and car parts — has increased more than 40%, said Dale Porfilio, chief insurance officer at the nonprofit Insurance Information Institute. Insurers are starting to pass more of those costs onto policyholders, he said. "You also have the fact that people's behavior got riskier during the pandemic," Porfilio said. "So, you think about things like speeding, drunk driving, all those characteristics got worse during the pandemic — our own behavior got riskier." The third reason insurance rates are climbing: Lawyers are increasingly involved in settling accident claims. "In general, when you have increased attorney involvement, you actually end up with a higher payout from the insurance company, but a lower payout coming to the injured parties and the claims," Porfilio said. Dent in summer car buying season Car buying activity typically picks up during the spring and summer months, experts said, as customers like to stroll dealership lots in warmer weather. But rising auto insurance rates are starting to threaten what's typically a fruitful season for automakers. Gas prices and regular maintenance on a vehicle — like getting the oil changed or the tires rotated — are also weighing down household budgets. A Bank of America survey from March found that Americans feel vehicle maintenance and loans are two of the top five most difficult household expenses to afford. Drivers should expect auto insurance rates to continue climbing the rest of this year, Porfilio said, adding that although prices should stabilize in 2025, exactly when will vary from company to company.
European Commission accuses Elon Musk's X platform of violating EU Digital Services Act 2024-07-12 15:42:00+00:00 - London — The European Union said Friday that blue checkmarks from Elon Musk's X are deceptive and that the online platform falls short on transparency and accountability requirements, in the first charges against a tech company since the bloc's new social media regulations took effect. The European Commission outlined the preliminary findings from its investigation into X, formerly known as Twitter, under the 27-nation bloc's Digital Services Act. The rulebook, also known as the DSA, is a sweeping set of regulations that requires platforms to take more responsibility for protecting their European users and cleaning up harmful or illegal content and products on their sites, under threat of hefty fines. Regulators took aim at X's blue checks, saying they constitute "dark patterns" that are not in line with industry best practice and can be used by malicious actors to deceive users. Before Musk's acquisition, the checkmarks mirrored verification badges common on social media and were largely reserved for celebrities, politicians and other influential accounts. After Musk bought the site in 2022, it started issuing them to anyone who paid $8 per month for one. "Since anyone can subscribe to obtain such a 'verified" status' it negatively affects users' ability to make free and informed decisions about the authenticity of the accounts and the content they interact with," the commission said. An email request for comment to X resulted in an automated response that said "Busy now, please check back later." Its main spokesman reportedly left the company in June. "Back in the day, BlueChecks used to mean trustworthy sources of information," European Commissioner Thierry Breton said in a statement. "Now with X, our preliminary view is that they deceive users and infringe the DSA." The commission also charged X with failing to comply with ad transparency rules. Under the DSA, platforms must publish a database of all digital advertisements that they've carried, with details such as who paid for them and the intended audience. But X's ad database isn't "searchable and reliable" and has "design features and access barriers" that make it "unfit for its transparency purpose," the commission said. The database's design in particular hinders researchers from looking into "emerging risks" from online ads, it said. The company also falls short when it comes to giving researchers access to public data, the commission said. The DSA imposes the provisions so that researchers can scrutinize how platforms work and how online risks evolve. But researchers can't independently access data by scraping it from the site, while the process to request access from the company through an interface "appears to dissuade researchers" from carrying out their projects or gives them no choice but to pay high fees, it said. X now has a chance to respond to the accusations and make changes to comply, which would be legally binding. If the commission isn't satisfied, it can levy penalties worth up to 6% of the company's annual global revenue and order it to fix the problem. The findings are only a part of the investigation. Regulators are still looking into whether X is failing to do enough to curb the spread of illegal content — such as hate speech or incitement of terrorism — and the effectiveness of measures to combat "information manipulation," especially through its crowd-sourced Community Notes fact-checking feature. TikTok, e-commerce site AliExpress and Facebook and Instagram owner Meta Platforms are also facing ongoing DSA investigations.
This Financial Stock's Earnings Signal a Buying Opportunity 2024-07-12 15:32:00+00:00 - Most investors would look at consumer staples stocks for protection against the whipsaws that the market can bring during cycles. While this theory tends to work over time and has worked over time, it is a widely accepted model. However, markets aren’t a simple model. They are dynamic, and each cycle is different, and today is no exception. This is why the financial sector might be a better place to be when trying to hedge away some of the cycle risk. Citigroup Today C Citigroup $64.52 -1.19 (-1.81%) 52-Week Range $38.17 ▼ $66.99 Dividend Yield 3.29% P/E Ratio 18.07 Price Target $65.66 Add to Watchlist Banking stocks are in the spotlight this time. Investment banks like Goldman Sachs Group Inc. NYSE: GS are highly dependent on the business cycle and interest rates, which drive the volume of investment banking deals, sales, and trading volatility. That might be different from the place to be right now. On the other hand, other banks like Wells Fargo & Co. NYSE: WFC are more exposed to the commercial side of the industry, which is not as dependent on the business cycle. Get Starbucks alerts: Sign Up Others stand in the middle of the spectrum, being exposed to investment banking and commercial banking activities to cushion the cycle. One such bank is Citigroup Inc. NYSE: C, which will show investors this sort of diversification in its second quarter 2024 earnings results. Despite the stock trading lower by over 2% after the release, growing concerns will be cleared away by Wall Street expectations. The Growth Engine Behind Citigroup Stock Digging into the bank's quarterly earnings presentation, investors will notice a common trend: growth in every aspect of Citigroup stock's operations. Starting with the commercial side of the business, Citigroup saw a 6% revenue jump over the year. Revenue increased due to higher net interest income (NII), a widely followed metric for banking earnings. The rising level of branded credit card usage is behind this profit metric, which is responsible for 8% of the revenue growth in that segment alone. Most investors are aware of the rising trends in credit card usage now that most American consumers are feeling the choking effects of inflation. While that was the main driver on the commercial side, investors can take a look under the hood of the economy by dissecting Citigroup's investment banking side. Investment banking revenues rose by 60% over the year, leading to higher bank profits. Now, investors need to understand that investment banking activities are highly dependent on the business cycle and interest rates. Low interest rates and flexible financing typically encourage more mergers and acquisitions (M&A) and other debt or equity issuance activity. Citigroup MarketRank™ Stock Analysis Overall MarketRank™ 4.96 out of 5 Analyst Rating Moderate Buy Upside/Downside 1.8% Upside Short Interest Healthy Dividend Strength Moderate Sustainability -0.49 News Sentiment 0.54 Insider Trading N/A Projected Earnings Growth 22.01% See Full Details With the promise of interest rate cuts on the horizon, expected by September 2024, according to the CME's FedWatch tool, corporate activity may have been picking up, bringing Citigroup into the eye of the storm of potentially higher profits ahead. This could be why Wall Street analysts felt comfortable with a forecast for up to 22% earnings per share (EPS) growth rate for the next 12 months. Of all these analysts, those at Oppenheimer are the positive outliers, as they slapped a valuation of $86 a share for Citigroup stock, daring it to rally by 33.5% from where it trades today. More than that, rising profits across commercial and investment banking activities enabled Citigroup management to boost shareholder rewards. Dividend payouts are now up to $2.12 a share for shareholders, which at today's prices represent an annual dividend yield of 3.3%, which at least lets investors keep up with inflation rates. What Citigroup Stock's Numbers Reveal About the Economy Despite the growing revenue and profit numbers across the bank’s segments, there is one caveat. The Federal Reserve reports that current credit card delinquency rates are back to levels not seen since 2011, which is a huge warning sign. This is a warning about the state of the U.S. consumer economy as consumers wait for a government bailout through interest rate cuts. In the meantime, banks like Citigroup are building up a war chest in case these rising credit card balances become delinquent. Citigroup’s investor presentation shows that non-conforming loans rose to $2.3 billion this quarter, an annual jump of 59%. This means that loans at Citigroup that are considered delinquent jumped by 59% on the year, which says a lot about the consumer discretionary sector. Investors can put a blaming finger on this statistic to understand why Nike Inc. NYSE: NKE and Starbucks Co. NASDAQ: SBUX took a dive recently to trade near their 52-week lows. More than that, the allowance for further credit losses increased to $1.9 billion, showing worsening consumer expectations. While that may not affect Citigroup stock much, as investors know the bank can cushion the cycle, it is a robust data reference for making other investment decisions in different sectors. Citigroup Inc. (C) Price Chart for Sunday, July, 14, 2024 Before you consider Starbucks, 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 Starbucks wasn't on the list. While Starbucks currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Social Platform Stock Hits New Highs: Is More Growth Ahead? 2024-07-12 14:38:00+00:00 - Reddit, Inc. NYSE: RDDT has been on an impressive run, recently achieving a new all-time high and up almost 40% YTD. The question now is whether this momentum and sector outperformance can continue after the stock pulled back nearly 10% from its recent highs and has a growing short interest. So, let's take a closer look at some key metrics, technical analysis, upcoming earnings, and overall sentiment to understand the potential trajectory of Reddit's stock in the near-to-mid-term. Get Reddit alerts: Sign Up Bullish Momentum: Reddit Reaches All-Time High Reddit's stock has soared nearly 40% year-to-date, with an outstanding 88% surge from its 52-week low set in April. More recently, the stock surpassed its previous post-IPO high of $74.90, reaching a new all-time high (ATH) last week of $76.74. This higher timeframe breakout and price reclaim signals strong bullish momentum. From a technical analysis perspective, Reddit's chart displays an extremely bullish setup. Shares are consolidating above the previous resistance zone near $70, which has now turned into support. If the stock can continue to hold above this zone, alongside rising moving averages, a breakout above its recent highs might propel the stock above the $80 mark. This consolidation phase is crucial as it demonstrates the stock's ability to sustain its gains and potentially launch another upward move. Reddit's Earnings as a Stock Catalyst With earnings on the horizon, it's essential to consider this as a significant factor influencing the stock's momentum. Reddit last posted its earnings data on May 7, 2024. The company reported a loss of $8.19 per share for the quarter, missing analysts' consensus estimates of a $2.34 loss by a substantial margin. However, the business generated $243 million in revenue, surpassing the consensus estimate of $213.99 million and reflecting a 48.4% increase compared to the same quarter last year. Reddit, Inc. (RDDT) Price Chart for Sunday, July, 14, 2024 Steve Huffman, Co-Founder and CEO of Reddit commented, "It was a strong start to the year and a milestone quarter for Reddit and our communities as we debuted as a public company. We see this as the beginning of a new chapter as we work towards building the next generation of Reddit." For the upcoming second quarter, Reddit estimates revenue between $240 million and $255 million and adjusted EBITDA between $0 and $15 million. These figures are well ahead of Wall Street's consensus of $227.5 million, suggesting a positive outlook that could further boost investor confidence. Analyst Upgrades Reflect Confidence in Reddit's Growth Potential Analyst sentiment towards Reddit remains bullish, with a Moderate Buy rating based on 16 analyst ratings. Recent actions include Loop Capital boosting its target from $60 to $75 on July 3, Needham & Company LLC raising its target from $63 to $75 in June, and Citigroup increasing its target from $65 to $70 in May while maintaining a buy rating. While the bullish momentum and positive analyst actions paint a promising picture, it's important to note the growing bearish sentiment. Short interest in Reddit's stock has increased significantly, with 27.6% of the stock's float, or 8.43 million shares, sold short. This high short interest could catalyze a substantial short squeeze, potentially driving the stock higher if momentum continues and shorts are forced to cover their positions. Watching Reddit's Momentum: Key Factors to Monitor Reddit's stock has shown remarkable performance and technical strength, positioning itself for potential further gains. The upcoming earnings report will be a critical factor, with positive expectations potentially driving the stock higher. While analysts' upgrades and strong revenue forecasts support the bullish sentiment, the high short interest adds an element of volatility that could amplify any upward movement. Investors should watch closely as earnings season approaches, as it may determine whether Reddit's momentum will continue or if the stock might face new challenges. Before you consider Reddit, 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 Reddit wasn't on the list. While Reddit currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here