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Major Acquisition: Aerospace Powerhouse Buys Its Key Supplier 2024-07-10 13:20:00+00:00 - Boeing Today BA Boeing $183.73 +0.49 (+0.27%) 52-Week Range $159.70 ▼ $267.54 Price Target $220.89 Add to Watchlist Last week, Boeing NYSE: BA announced it is acquiring one of its key suppliers, Spirit AeroSystems NYSE: SPR, for $37.25 per share. The transaction represents an equity value of $4.7 billion and an enterprise value of $8.3 billion, as Boeing will assume $3.1 billion of Spirit's debt. At the time of the announcement, the sale price represented a 30% premium to Spirit’s stock price. Let’s break down the two businesses and the history of their relationship. Then, we can understand the reasons behind the decision and whether it makes sense. Get Airbus alerts: Sign Up Boeing's Segments and Key Partnership with Spirit AeroSystems Boeing is one of the world’s major aerospace companies. It has three reportable segments: Commercial Airlines, Defense, Space & Security, and Global Services. Commercial Airlines develops and produces commercial jet aircraft and made up 44% of its revenues in 2023. The Defense, Space & Security segment produces military aircraft and weapons systems. It made up 32% of revenues in 2023. The Global Services segment provides many services for commercial and defense customers. It made up 25% of revenues. Spirit AeroSystems is one of the world's largest producers of aerostructures for original equipment manufacturers (OEMs) such as Boeing and Airbus EPA: AIR. Aerostructures are the primary components of an aircraft's airframe, which is the fundamental mechanical structure of an airplane, excluding items such as passenger seats or cockpit control systems. Spirit’s core products include fuselages, wings, pylons, and nacelles. Boeing and Spirit have a longstanding relationship. Boeing owned and controlled a significant portion of the firm's operations up until 2005. Spirit was then spun off into a standalone firm. As part of the spin-off, the firms entered into a lifetime agreement. Spirit would be the only supplier of aerostructures for Boeing’s commercial planes. This agreement applied to the B737, B747, B767, B777, and partially to the B787. Boeing's business made up 64% of Spirit’s net revenues in 2023, while Airbus accounted for 19%. Boeing's Acquisition of Spirit to Address Quality Control and Safety Issues Boeing decided to acquire Spirit to rectify quality control issues and signal to regulators that it is doing everything possible to make its planes safer. Safety concerns have been growing over the last several years. These issues started back in 2018 and 2019 when two 737 Max crashes left 346 people dead. Earlier this year, a portion of a 737 Max 9's cabin flew off the plane in midair, leaving passengers exposed. A terrifying video of the event surfaced online, adding to Boeing's public relations nightmare. This defect involved a mistake by Spirit’s employees failing to properly reinstall a panel they had repaired. More criticism came after questions about Spirit’s fuselage manufacturing caused delays in the production of 737 Max aircraft. These safety concerns have damaged Boeing's market share in commercial airlines. In 2017, Boeing held a slight lead in net orders over Airbus. In 2023, Airbus accounted for 65% of net orders and 59% of deliveries. A Long-Term Move to Regain Market Share and Restore Profitability Ultimately, this acquisition makes sense. Shares are down 23% over the last three years, and something needs to change. Looking at the firm’s bottom line, it has been hemorrhaging money over the last five years. It cut its net loss by over half from 2022 to 2023, to $2.2 billion. However, this is far from the net income of $10.5 billion the firm earned in 2018. To regain profitability, the firm must dramatically increase its net orders and deliveries. Manufacturing airplanes is extremely expensive and has high fixed costs. To make up for this, Boeing needs to achieve economies of scale. The Boeing Company (BA) Price Chart for Wednesday, July, 10, 2024 Spirit manufactures critically important parts of Boeing's planes. It is paramount to have full control over essential parts of its supply chain to efficiently produce planes at the level required to become profitable again. Boeing would have liked to fix quality issues without paying billions for Spirit. But, it likely realized that wasn't possible. Spirit's CEO stepping down in 2023 demonstrates the internal turmoil at the firm. Boeing’s share price has changed little since the announcement, which shows that investors are indifferent. However, this long-term move will be positive if Boeing shows it is fixing quality control issues. This will lead to more orders and deliveries over time, eventually helping Boeing’s stock price rise again. The average price target for Boeing implies an upside of 21% from the current level. Before you consider Airbus, 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 Airbus wasn't on the list. While Airbus currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
5 Best Short-Term Stocks to Consider Investing In 2024-07-10 13:00:00+00:00 - Not every investor is in the market for the long haul. Some prefer short time frames and volatile stocks, looking to make a profit in days or weeks rather than years. Short-term investors occasionally find a big win (like the short squeezes in meme stocks back in 2021), but day and swing trading is often more about grinding out small wins and minimizing losses. If you want to get into short-term trading, you’ll need to understand why day and swing traders look at different factors and concepts than long-term investors. Short-term trading requires technical skill, market trend knowledge, and the ability to stay calm under pressure. Get analyst upgrade alerts: Sign Up How to Select the Best Short-Term Stocks Short-term traders use technical indicators like moving averages, the Moving Average Convergence Divergence (MACD), and the Relative Strength Index (RSI) to help them make their investment decisions. Fundamental analysis plays less of a role since long-term success metrics like sales and margin growth don’t have time to play out in the short-term investor’s portfolio. Instead, you’ll be looking for signals that indicate trend reversals or continuations and any potential catalyst that could provide a short-term boost. Consider various factors when looking for stocks that might provide short-term profit growth. No single technical indicator has a 100% success rate, and even the most promising catalyst or product launch can fail to move the stock enough to fit your goals. When performing your analysis on a stock, make sure you consider the following criteria. Market Volatility Long-term investors try to ignore volatility and focus on results over time horizons that often measure in decades. If you’re returning 7% annually, you’ll have a nice egg after 30 years. But short-term investors won’t be satisfied with 7% annual returns. You'll need to embrace volatility if you want to earn 10-20% in a brief period. You'll also need to set strict risk tolerance parameters since short-term traders must exit positions more rapidly if their thesis doesn’t pan out. Liquidity When investing for short-term profits, liquidity is often a two-way street. Stocks with a low available share count (called the float) could be volatile on low volume since it doesn’t take as much buying pressure to push up a low-float stock. However, investors must consider the other side of the coin when it comes time to exit a position. Every seller needs a buyer, and illiquid stocks may be hard to unload completely once profit goals are reached. Company News Earnings releases, product launches, hires and departures, or analyst upgrades/downgrades can all be catalysts that influence short-term stock prices. For example, suppose a company with a history of consistent earnings beats misses in a particular quarter. In that case, further investigation might be warranted to see if it was a one-time blip due to capital expenditures or the beginning of a downtrend in profitability. Technical Signals Last but not least, technical analysis will be at the forefront of most of your short-term trading activity. These signals are the action cues technical traders take to enter and exit positions based on specific price data. Indicators like MACD and RSI use moving averages to measure the direction and trend of stock price movements. Your profit goals and stop-loss orders will rely heavily on technical trading data. 5 Top Short-Term Stocks to Consider Using a combination of the above criteria, we’ve identified five stocks to consider when looking for short-term profit opportunities. These stocks have different market caps and reside in various stock sectors, but they all have some combination of technical signals or upcoming catalysts that make them intriguing short-term investment candidates. Skywest SkyWest Today SKYW SkyWest $83.75 -0.16 (-0.19%) 52-Week Range $36.91 ▼ $84.68 P/E Ratio 30.23 Price Target $76.67 Add to Watchlist Investing in the airline sector isn’t for the faint of heart, but Americans continue to travel at record rates, and Skywest Inc. (NASDAQ: SKYW) has been one of the biggest beneficiaries. SKYW shares have shown impressive momentum over the last year, vastly outperforming its considerably larger competition amongst U.S. air carriers. SKYW stock price is trading well above its 20-, 50-, and 200-day moving averages, and despite a more than 20% gain in the previous three months, shares still aren’t showing an oversold reading on the RSI. Consider riding the momentum on SKYW a bit longer as the next earnings release on July 25, 2024 approaches. Complete Solaria Complete Solaria Today CSLR Complete Solaria $1.47 -0.02 (-1.34%) 52-Week Range $0.20 ▼ $16.00 Price Target $6.00 Add to Watchlist Small-cap solar tech provider Complete Solaria Inc. (NASDAQ: CSLR) recently had an important technical signal flash on its chart -- the Golden Cross, which occurs when a stock price’s 50-day moving average crosses over its 200-day moving average. Golden Crosses are well-known bullish signals, and CSLR shares have more than doubled since the pattern was formed in early May. The stock also has a small enough float (49 million shares outstanding) to create some serious volatility should volume continue to increase. Tesla Tesla Today TSLA Tesla $263.26 +0.93 (+0.35%) 52-Week Range $138.80 ▼ $299.29 P/E Ratio 67.16 Price Target $192.71 Add to Watchlist Let’s switch gears and look at a stock that might be in the middle of a significant downtrend reversal. Few stocks have been dragged through the mud harder than Tesla Inc. (NASDAQ: TSLA) over the last year, thanks to the Cybertruck flop, a slowdown in electric vehicle (EV) sales growth and the ever-divided attention span of mercurial CEO Elon Musk. However, TSLA shares have rebounded 18% in the last month since the RSI flashed an oversold reading, and shareholders recently approved Musk’s latest compensation package, which could renew his efforts to boost the beleaguered EV manufacturer. Oppenheimer Holdings Oppenheimer Today OPY Oppenheimer $49.86 +0.67 (+1.36%) 52-Week Range $32.82 ▼ $50.14 Dividend Yield 1.20% P/E Ratio 13.44 Add to Watchlist One of the most significant breakout stocks of 2024 is an investment bank itself, Oppenheimer Holdings Inc. (NYSE: OPY), which you likely see giving analyst reports and price targets on countless public companies. But OPY shares have been riding a wave of bullish momentum and are up nearly 29% in the last three months. The stock is trading above its 50- and 200-day moving averages (Golden Cross was triggered in May), and the company made some high-profile hires in June that continue to boost its global footprint. Ligand Pharmaceuticals Ligand Pharmaceuticals Today LGND Ligand Pharmaceuticals $96.30 +4.59 (+5.00%) 52-Week Range $49.24 ▼ $97.80 P/E Ratio 18.63 Price Target $122.25 Add to Watchlist Ligand Pharmaceuticals Inc. (NASDAQ: LGND) is a large-cap biotech with an extensive drug pipeline. The company currently markets medicine for multiple myeloma, lymphoblastic leukemia and lymphoma, kidney disease, diabetes, and more. In June 2024, LGND shares received Buy ratings from HG Wainwright and Benchmark, and the stock price has jumped over 18% year-to-date. Additionally, the stock chart shows a bullish MACD crossover signal while the RSI remains firmly below oversold levels. Strategies for Short-Term Stock Trading When developing a short-term trading plan, you should set clear objectives and know exactly where you’ll take profits (or cut losses). Stop-loss orders can be a crucial risk management step, especially if you’re trading with timeframes that measure in minutes or hours. Never risk more than you feel comfortable losing when trading on short-term strategies. Day Trading: If you buy and sell stocks during a single trading session and hold no positions overnight, you’re known as a day trader. Day traders must have the tightest profit and loss rules and often trade small caps or penny stocks for outsized volatility. If you buy and sell stocks during a single trading session and hold no positions overnight, you’re known as a day trader. Day traders must have the tightest profit and loss rules and often trade small caps or penny stocks for outsized volatility. Swing Trading: A swing trader also has a short timeframe but is willing to hold a stock overnight (or a few nights), waiting on a technical signal or catalyst to cause a move. Swing traders often look for unique situations like short squeezes where large profits can be made over a few days or weeks. A swing trader also has a short timeframe but is willing to hold a stock overnight (or a few nights), waiting on a technical signal or catalyst to cause a move. Swing traders often look for unique situations like short squeezes where large profits can be made over a few days or weeks. Scalping: The shortest trading timeframe belongs to scalpers, who may only hold positions for seconds, looking to profit from incremental 3%, 4%, or 5% gains. These traders may make dozens (or more) of transactions per day, seeking to accumulate small wins while avoiding losses. Risks and Considerations in Short-Term Trading Short-term trading isn’t a glamorous life; it's a daily grind in front of a computer monitor, attempting to rack up as many winning trades as possible while ruthlessly cutting losing positions. You don’t get to "set it and forget it" like an investor with index funds in a retirement account. Instead, you’ll be following the market with the vigor of a basketball bettor during March Madness. Market volatility and mistimed trades can create significant losses, but active trading also brings mental anguish and stress. You must constantly track the market, absorb data, and adjust your holdings. Very few investors have consistent success actively trading, and those that do must devote significant time and energy toward their winning ways. Always keep a diversified portfolio and never invest above your comfort level. Short-Term Trading Can Provide Quick Profits, but Investors Must Follow Tight Rules Long-term investing is usually the safest form because investors with long time horizons can recover from downturns or their own mistakes. But when time horizons narrow, so does the margin of error. To become a successful active trader, you must develop a trading regimen, practice your techniques (preferably with a demo account first), and never become too stubborn to exit a losing position. Capitalize on Market Trends with MarketBeat Short-term traders follow technical signals and market trends to turn profits. Want to stay on top of the market with daily updates from MarketBeat? Click here to learn more about our latest products and offerings. Before you make your next trade, 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. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now... See The Five Stocks Here
One of the Top Food Stocks to Own: Delivering Outstanding Growth 2024-07-10 12:45:00+00:00 - Domino's Pizza Today DPZ Domino's Pizza $477.99 +0.16 (+0.03%) 52-Week Range $330.05 ▼ $542.75 Dividend Yield 1.26% P/E Ratio 31.20 Price Target $527.38 Add to Watchlist Shares of Domino's Pizza, Inc. NYSE: DPZ have been on a tear since May of last year. The fast food giant has watched its stock gain as much as 85% in less than a year as it returns to its winning ways. For context, in the ten years before Domino's last hit an all-time high, the stock gained 1,600%. Sure, it had a slump like everyone else in 2022, but this stock knows how to rally. Much of this is due to solid fundamental performance. The company's most recent earnings update, at the end of April, smashed analyst expectations with red-hot earnings and comparable sales growth. Indeed, investors could be forgiven for thinking they have missed much of the rally. Get Domino's Pizza alerts: Sign Up Domino's Is in the Spotlight: Recent Stock Decline and Sector Trends However, the past month has seen Domino's stock cool somewhat, with a 5% drop in Tuesday's session alone, making it a full 10% loss since the middle of June. Despite performing well itself, it looks like Domino's is getting caught up in a shift in investor sentiment towards the restaurant and fast food sector in general. Some comments yesterday from Baird and KeyBanc Capital pointed to general anxiety about the sector's strength and ability to meet and beat analyst expectations for this quarter. Baird's data showed comparable casual dining sales for the most recent week, falling to -6%, well below the -3% in Q2 overall. Baird analyst David Tarantino suggested watching the "recent downward momentum" closely in case new headwinds emerge in the form of falling consumer confidence and related spending. Similarly, KeyBanc's Eric Gonzalez pointed to weakening investor sentiment on the space and warned that the upcoming earnings season could be "underwhelming." Domino's Outperform Rating: Analyst Insights and Expectations However, while the list of stocks he feels are most likely to disappoint did include a pizza name, it was Papa John's International Inc NASDAQ: PZZA, not Domino's. In fact, in a sign of just how much potential Domino's has, this week caught a red-hot upgrade from the same Baird that's turning bearish on the sector as a whole. They upped their rating on Domino's from Neutral to Outperform, with analyst David Tarantino being particularly bullish on the company's confidence level in its outlook. He summarized this in a note to clients on the same day the industry-wide numbers pointed to a slowing in growth: " With visible sales drivers, a positive unit development outlook, and a highly franchised business model, Domino's has a profile that fits well with the type of businesses that, we think, are attractive to own amid ongoing uncertainties about the health of consumer spending." Investing in Domino's: Attractive Entry Point and Future Potential Domino's Pizza MarketRank™ Stock Analysis Overall MarketRank™ 4.75 out of 5 Analyst Rating Moderate Buy Upside/Downside 11.2% Upside Short Interest Healthy Dividend Strength Strong Sustainability -2.39 News Sentiment 1.20 Insider Trading Selling Shares Projected Earnings Growth 14.00% See Full Details For those of us looking to gain some exposure to the restaurant and fast food space, it doesn't get much better than this. Not only is Domino's being named as a standout performer set to buck the trend and outperform its peers, but this week's dip is also creating a solid entry opportunity. The stock is back trading under $500, closing just below $478 on Tuesday evening. Baird has a fresh price target of $580 on the stock, which points to a very appealing upside of some 20% from current levels. They're far from alone in their bullishness, either. The Royal Bank of Canada, TD Cowen, Wedbush, and Goldman Sachs all reiterated their Buy ratings on the stock last month. Goldman, in particular, went even higher than Baird with their price target and had theirs at a street-high $612. That's nearly 30% of the indicative upside from where Domino's closed last night, and it would mean the stock is back trading at its first all-time high since 2021. With Domino's history of setting high after high as it rallies, this is one to watch closely and get excited about. Before you consider Domino's Pizza, 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 Domino's Pizza wasn't on the list. While Domino's Pizza currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Amazon offering $20 credit to some customers before Prime Day. Here's how to get it. 2024-07-10 09:56:00+00:00 - Amazon is dangling a $20 credit for some customers ahead of its annual Prime Day event, scheduled this year for July 16-17. But the online retailer notes that consumers must take certain steps to claim the credit before July 13. The $20 credit is available to Prime members who back up at least one photo with Amazon's Photo app by a certain time (see details below). Since Amazon debuted Prime Day in 2015, the company has leaned on the event to peddle its own products, ranging from Kindle e-readers to Fire TV, as well as services such as music streaming. This year, the company is offering the $20 credit to convince users to try its Amazon Photo app, a service that provides unlimited storage and five GB of video — more video storage costs about $12 a month. Amazon's sales from services, such as its cloud computing platform, now dwarfs its revenue from product sales. And the company is also facing more competition for consumers' wallets as low-cost retailers such as Temu and Shein elbow into the U.S. market. Who qualifies for the $20 credit? The offer is available for Amazon Prime members who upload at least one photo through the Amazon Photos app for the first time. People who aren't Prime members or those who have already used the Photos app are ineligible for the credit. Amazon also said consumers with a Prime trial membership don't qualify for the $20. Some people use the 30-day trial membership to take advantage of Prime Day before making a decision on whether to join. How do you get the credit? You'll have to upload at least one photo through the Amazon Photos app before 11:59 p.m. Pacific Time on July 12. When will Amazon provide the $20 credit? Amazon said it will send an email within four days after you upload your photo that confirms the $20 credit has been applied to your customer account. That means if you upload a photo on July 12, you'll receive the credit by July 16 — the day that Prime Day begins. Are there restrictions on using the $20 credit? The $20 credit can only be used to buy products from Amazon.com or Amazon Digital Services. That means the credit can't be used to buy products sold by third-party sellers or other Amazon divisions, even if it says the product is Prime eligible or fulfilled by Amazon. You'll also have to buy at least $30 worth of products to apply the $20 credit, Amazon said. Taxes, shipping and handling and gift wrapping don't apply to the $30 minimum purchase amount, the company added. Does the $20 credit have an expiration date? Yes, Amazon said the credit will expire at 11:59 p.m. Pacific Time on July 17 — the last day of the Prime Day event.
Stock market today: S&P 500, Nasdaq build on record highs as Powell testimony keeps rate cut hopes alive 2024-07-10 05:21:00+00:00 - The S&P 500 and Nasdaq nabbed new record closes on Tuesday (and also each notched their sixth straight day of gains) as rate cut hopes remained intact after Federal Reserve chair Jerome Powell kicked off his semiannual update to Congress. The S&P 500 (^GSPC) finished just above the flatline to book its 36th record close of the year, while the tech-heavy Nasdaq Composite (^IXIC) also built on its previous record to close up about 0.1%. The Dow Jones Industrial Average (^DJI), which seesawed throughout the trading session, closed down around 0.1%. Stocks have achieved fresh all-time highs as signs of a US economic slowdown bolster bets on interest-rate cuts. Powell shed light on the Fed's picture of the economy, commencing his twice-yearly policy update to Congress on Tuesday with an appearance in the Senate. In prepared remarks, the central bank leader said he's encouraged by evidence of cooler inflation, but that the Fed still needs more "good data" to be confident that inflation is moving towards its 2% target. Traders still placed bets that the Fed will cut interest rates twice this year. "We’re increasingly confident in our forecast that the Fed will cut rates in September," wrote Oxford Economics chief US economist Ryan Sweet. Powell will appear before the House on Wednesday, setting the stage for a key update on consumer inflation on Thursday — all potential catalysts for stocks if they confirm a cooling. But a note of caution is seeping into the market as the idea of a summer pullback gets more backers, with Morgan Stanley strategist Mike Wilson calling for a 10% correction. LIVE COVERAGE IS OVER 10 updates S&P 500, Nasdaq notch records (again) Another record-setting close for the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC). Both indexes finished the day up about 0.1% while the Dow Jones Industrial Average (^DJI), which seesawed throughout the trading session, closed down around 0.1%. The moves come as Federal Reserve chair Jerome Powell kicked off his semiannual update to Congress. Powell stuck to his usual script, saying he's encouraged by evidence of cooler inflation, but that the Fed still needs more "good data" to be confident that inflation is moving towards its 2% target. Traders still placed bets that the Fed will cut interest rates twice this year following his testimony. How to play the AI trade? Broaden your exposure There's been massive interest in artificial intelligence (AI). So much so that the Magnificent 7 has driven about two-thirds of the S&P 500 returns. But is it a bubble? Citi says no — at least for now. "Sentiment around stocks with high exposure to AI is the most elevated it has been since 2019," Drew Pettit, director or US equity strategy at Citi, wrote in a new research note on Tuesday. "We continue to suggest investors take profits in AI highfliers, notably the enablers (ex. Semiconductors), and rebalance towards a broader array of AI stocks across the value chain." In other words, take the AI-driven profits and run to other use them to broaden your AI exposure across your portfolio. "Practically speaking, not owning, or outright positioning against, AI would be difficult for many on the buy-side." (Source: Citi Research) More signs of market breadth ahead of earnings season Earnings season is about to kick off. And analysts are watching for more signs of market breadth. "The second quarter is expected to be the first earnings per share (EPS) growth quarter for the other 493 S&P 500 companies since Q4 2022, whereas growth for the Mag. 7 is expected to slow for the second straight quarter and again in Q3," wrote Ohsung Kwon, equity and quant strategist at Bank of America. "Growth is broadening out and so should the market." Earnings season will kick off on Friday with the big banks like JPMorgan (JPM) and Citigroup (C) reporting quarterly results. As Yahoo Finance's David Hollerith pointed out, regional banks remain a key concern for Wall Street. Regional banks are expected to report a 26% year-over-year decline in earnings growth. BP, Baidu, Novo Nordisk: Stocks trending in afternoon trading Here are some stocks trending on the Yahoo Finance homepage in afternoon trading on Tuesday: BP ( BP ): The company's US-listed shares fell about 4% on Tuesday after the energy giant warned of a refining slump and factory-linked writedown of up to $2 billion. Baidu ( BIDU ): Shares of the Chinese tech conglomerate climbed 8% on Tuesday after Beijing said it will support the introduction of robotaxis in ride hailing and car rental fleets. Baidu's Apollo platform, which is its open-source platform for autonomous driving, has rapidly expanded its robotaxi operations over the past year. Novo Nordisk ( NVO ) : Shares of the global healthcare company slipped more than 1% after Wegovy lost out to Eli Lilly's (LLY) Mounjaro in an analysis of rival weight-loss drugs. In a statement to Yahoo Finance, Novo claimed it wasn't a fair apples-to-apples comparison and that the study had some key deficiencies. Tesla stock on track for its tenth straight day of gains Tesla's stock (TSLA) is on track for its tenth straight day of gains as shares bounced about 4% higher in mid-afternoon trading on Tuesday. The positive moves mean Tesla has erased all of its year-to-date losses with the stock up about 5% since the start of the year. Shares have also surged about 75% since hitting 52-week lows in April. Analysts have credited the company's second-quarter vehicle production and deliveries numbers, which beat Wall Street expectations, along with further momentum surrounding Tesla's artificial intelligence businesses. "All of a sudden, the market is valuing the growth potential for Tesla," Seth Goldstein, equity strategist at Morningstar, told Yahoo Finance. "Q1 deliveries surprised to the downside so the market was assuming a lower growth rate and that's why we've seen the large rally." Tesla is set to report its next batch of quarterly results on July 23 after the market close. It's also teased the development of more affordable electric vehicles (EVs), which investors see as another key catalyst for growth. But Goldstein said the company will have to lay out a "solid, concrete timeline" when it comes to the rollout of those cars, which the company previously said could happen as soon as 2025. "We need to see that being met or pushed up earlier so that [Wall Street] can assume Tesla will see a second wave of deliveries growth starting in 2026," he said. "As long as that narrative remains intact, I think that the stock will be okay. But if that's pushed out or if management sounds more uncertain that that's going to happen, then I think we could see the stock falter." Outside of earnings and deliveries, investors will also be on the lookout for another growth opportunity: robotaxis. The company is set to unveil its much-anticipated robotaxi on Aug. 8. Treasury yields rise as stocks hold near records US treasury yields moved higher as Federal Reserve Chair Jerome Powell delivered testimony on Capitol Hill early Tuesday. The benchmark 10-year treasury yield (^TNX) inched up about 6 basis points to trade near 4.33%. The 30-year yield (^TYX) also moved about 6 basis points higher to trade around 4.51%. In prepared remarks, Powell said he was encouraged by evidence of cooler inflation but that more "good data" was needed in order to instill more confidence the Fed was on its way to reaching its 2% inflation target. He also warned that cutting rates too fast or too soon would threaten the "modest" progress on inflation. Stocks, however, continued to hover near record high as traders still placed bets on two interest rate cuts to come this year. "Federal Reserve Chair Jerome Powell's testimony is further evidence that the central bank is moving closer to cutting interest rates as its reaction function is better balanced between inflation and the labor market now than in the past couple of years," wrote Oxford Economics chief US economist Ryan Sweet. "We’re increasingly confident in our forecast that the Fed will cut rates in September," he added. "But the path of interest rates is more uncertain than usual because the outcome of the presidential election will have a huge bearing on whether the central bank should continue to ease, pause, or even resume hiking." Powell: Fed needs more 'good data' in order to cut rates Federal Reserve Chair Jerome Powell kicked off his semiannual update to Congress on Tuesday, appearing before the Senate Banking Committee. He will appear before the House Financial Services Committee tomorrow. Yahoo Finance's Jennifer Schonberger has the story: Powell indicated the central bank is inching closer to feeling comfortable about interest rate cuts, saying that he was encouraged by evidence of cooler inflation and that more "good data" would help get the Fed to where it wants to be. The inflation numbers "have shown some modest further progress" after some hotter readings in the first quarter, "and more good data would strengthen our confidence that inflation is moving sustainably toward 2%,” he said in prepared testimony before US lawmakers Tuesday. It is the second time in the last week Powell has offered optimism about the inflation picture. Last Tuesday he noted that the last two inflation readings from April and May "do suggest that we are getting back on a disinflationary path." Federal Reserve Board Chair Jerome Powell speaks at a news conference at the Federal Reserve in Washington, June 12, 2024. (AP Photo/Susan Walsh, File) (ASSOCIATED PRESS) The next reading on inflation as measured by the Consumer Price Index is due out Thursday. It isn’t expected to show inflation getting worse, but it also isn’t expected to drop, either. Based on “core” CPI — which excludes volatile food and energy prices the Fed can’t control — inflation is expected to hold steady at 3.4% in June from the same level in May. Powell noted in his prepared testimony the Fed will continue to make decisions on monetary policy meeting by meeting. He reiterated that lowering rates too quickly could reverse progress on bringing inflation down, while keeping rates elevated for too long could weaken the economy and the job market. Democrats are expected to press Powell to lower rates soon, while Republicans are likely to press Powell on bank capital rules and emphasize that rates shouldn't be cut too close to the election in November. Powell in his testimony underscored that Congress has entrusted the Fed with the operational independence that is needed to take a “longer-term perspective” in the pursuit of its dual mandate of maximum employment and stable prices. S&P 500, Nasdaq edge up ahead of Powell US stocks opened in mostly positive territory on Tuesday, just ahead of Federal Reserve Chair Jerome Powell's twice-yearly policy update to Congress. Stocks have achieved fresh all-time highs as signs of a US economic slowdown bolster bets on interest rate cuts. On Tuesday, the S&P 500 (^GSPC) edged up about 0.2% after the index booked its 35th record close of the year on Monday, while those on the tech-heavy Nasdaq Composite (^IXIC) led the way higher with a roughly 0.3% gain following its own record close the day prior. The Dow Jones Industrial Average (^DJI) remained the only major index in the red, falling about 0.1%. Interesting observation on Chipotle Chipotle (CMG) continues to be a beloved brand, despite TikTok posts suggesting the chain has cut back on its notorious giant portion sizes. Interestingly, the company's $15 bowls and $10 burritos appear to be more beloved by lower-income households. Stifel analyst Chris O'Cull coming in hot with this research today: "After reviewing mobile location data suggesting strong traffic performance in 2Q, we raised our same-restaurant sales projection to 10% from 8.5% (Street 8.8%). Interestingly, while the strength continued the broad-based trend from 1Q, growth from lower-income consumers outpaced growth from middle- and high-income consumers during the quarter. Given industry comments about weaker spending by lower-income consumers, we believe the positive value perception of CMG across all income segments contributed to the traffic performance." O'Cull reiterated his Buy rating on the stock. Lower income households flock to Chipotle given greater value perception. (Stifel) Morning Apple vibes For those of you keeping score at home: Apple's (AAPL) market cap is now at $3.5 trillion and Nvidia's (NVDA) is at $3.15 trillion. To that end, good note out this morning from Piper Sandler analyst Matt Farrell after a 30% run in Apple since April: "Since early April, Apple is up over 30% (compared to S&P500 up over 5%), on the back of 1) Apple Intelligence excitement and 2) a potential bounce back in iPhone shipments in China. From our perspective, the excitement is warranted, as AI could be a needle mover for upgrades. In addition, a return to growth in iPhone sales in China could create a tailwind as well in the second half. However, given the current valuation (~32x near-term consensus EPS) and the growing risk of a consumer spending headwind, we feel like a lot of good news is already priced into the stock." Farrell is sticking with a Neutral rating on the stock.
A Southwest jet that did a 'Dutch roll' was parked outside during severe storm 2024-07-10 04:56:00+00:00 - DALLAS (AP) — Investigators say a Southwest Airlines jet that experienced an unusual “Dutch roll” in flight had been parked outside during a strong storm and then underwent routine maintenance, after which pilots noticed odd movements of the rudder pedals. After the May 25 incident, Southwest mechanics found “substantial” damage in the aircraft's tail, where the rudder is located, but the National Transportation Safety Board said Tuesday that it hasn't determined when the damage occurred. The plane, a Boeing 737 Max, was grounded for more than a month but resumed flights last week, according to data from Flightradar24.com. Dutch roll is a swaying, rhythmic combination of yaw, or the tail sliding sideways, and the wingtips rocking up and down. The Southwest jet experienced the movement at 34,000 feet and again after descending to 32,000 feet while flying from Phoenix to Oakland, California. The condition can be dangerous, and modern planes have a “yaw damper” to stop the oscillations that characterize Dutch roll. After the plane landed, Southwest mechanics found fractures in the metal bracket and ribs that hold a backup power control unit to the rudder system. Investigators examined the damaged parts last week in Ogden, Utah. The NTSB said the plane was parked overnight at the New Orleans airport on May 16 during thunderstorms that packed gusting winds up to 84 mph, heavy rain and a tornado watch. On May 23, the plane underwent scheduled maintenance, and afterward pilots noticed the rudder pedals moving when the yaw damper was engaged. Pilots on the May 25 flight felt the pedals moving during the Dutch roll and even after landing, the NTSB said. John Cox, a former airline pilot and now a safety consultant, said the NTSB preliminary report indicates that the plane was most likely damaged during the storm. He said the near hurricane-force winds could have caused the rudder on the parked jet to slam back and forth. Cox said there was “absolutely no way in the world” the Dutch roll caused such severe damage, nor does he think it was related to the maintenance work. “I do not see this as a Max issue. I do not see this right now as a 737 issue,” he said. “I see this as a one-off.” Southwest inspected its 231 Max jets last month and found no other cases of damage around the rudder power units and no problems in new planes it has received since, according to the NTSB. Dallas-based Southwest declined to comment. It could be a year or longer before the NTSB determines a probable cause for the incident.
Tesla stock notches 10th consecutive day of gains as investors eye growth potential 2024-07-10 04:18:00+00:00 - Tesla's stock (TSLA) closed up about 4% on Tuesday, securing its tenth straight day of gains. The positive moves mean Tesla has erased all of its year-to-date losses, with the stock up about 5% since the start of the year. Shares have also surged about 75% since hitting 52-week lows in April. Analysts have credited the company's second quarter vehicle production and deliveries numbers, which beat Wall Street expectations, along with momentum surrounding Tesla's artificial intelligence businesses. "All of a sudden, the market is valuing the growth potential for Tesla," Seth Goldstein, equity strategist at Morningstar, told Yahoo Finance. "Q1 deliveries surprised to the downside so the market was assuming a lower growth rate, and that's why we've seen the large rally." Tesla is set to report its next quarterly results on July 23 after the market close. It's teased the development of more affordable electric vehicles, which investors see as another key catalyst for growth. But Goldstein said the company will have to lay out a "solid, concrete timeline" when it comes to the rollout of those cars, which the company previously said could happen as soon as 2025. "We need to see that being met or pushed up earlier so that [Wall Street] can assume Tesla will see a second wave of deliveries growth starting in 2026," he said. "As long as that narrative remains intact, I think that the stock will be OK. But if that's pushed out or if management sounds more uncertain that that's going to happen, then I think we could see the stock falter." Outside of earnings and deliveries, investors will also be on the lookout for another growth opportunity: robotaxis. The company is set to unveil its much-anticipated robotaxi on Aug. 8. Tesla's stock plummeted in the first half of the year after its fourth quarter financial report missed on both the top and bottom lines. A 9% year-over-year drop in first quarter vehicle deliveries sent shares even lower as investors questioned the EV maker's sky-high valuation and demand still left in the US. Soon after the delivery miss, the company slashed more than 10% of its staff. At the time, analysts categorized the layoffs as an "ominous signal" for what's to come. Competition abroad from Chinese EV makers including Lucid (LCID), Li Auto (LI), Nio (NIO), and XPeng (XPEV) has also served as a significant overhang, fueling a price war that's forced Tesla to aggressively cut prices in order to compete. Story continues Short sellers have piled into the name as a result — but they've now been crushed by its recent rally. "Short sellers have been up and down in this name over the past couple years. It was the No. 1 short in the market. Now it's No. 4 behind ... Nvidia, Apple, and Microsoft," S3 Partners' Ihor Dusaniwsky told Yahoo Finance on Tuesday. "But this is like the OG short. Everyone is still in it." Tesla and SpaceX CEO Elon Musk listens to a question as he speaks at the SATELLITE Conference and Exhibition in Washington, March 9, 2020. (AP Photo/Susan Walsh, File) (ASSOCIATED PRESS) Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com. Click here for the latest stock market news and in-depth analysis, including events that move stocks Read the latest financial and business news from Yahoo Finance
Millions left without power in Houston after storm Beryl 2024-07-10 04:16:39+00:00 - HOUSTON (AP) — Houston’s biggest utility came under mounting pressure Wednesday over its response to Hurricane Beryl, as nearly 1.4 million area homes and businesses remained without power and frustrated residents searched for places to cool off, fuel up and grab a bite. City Council member Abbie Kamin called the extended lack of power since Monday’s storm a “life safety concern.” “We say ‘everything we can do’ to get the lights back on. In my opinion, respectfully, they should be on,” Kamin told a CenterPoint Energy executive during a council meeting. CenterPoint “needs to a do a better job,” restoring power, Mayor John Whitmire said. “That’s the consensus of Houstonians. That’s mine.” Residents who sought out community centers for a rest, air conditioning and a meal wondered how the nation’s fourth-largest city could buckle under a storm that packed less punch than many others that have pummeled the area over the last two decades. Beryl came ashore as a Category 1 hurricane, the weakest type, but has has been blamed for at least seven U.S. deaths — one in Louisiana and six in Texas — and at least 11 in the Caribbean. “Maybe they thought it wasn’t going to be so bad, but it’s had a tremendous effect. They needed to be better prepared,” said construction worker Carlos Rodriguez, 39, as he gathered apples, oranges and ready-to-eat meal packs at a food distribution center. His family, with two daughters ages 3 and 7, was struggling, he said. “We have no power, we’re going to bed late and I’m using a fan made out of a piece of cardboard to give my kids some relief,” Rodriguez said. Power outages peaked at 2.7 million customers after the storm made landfall in Texas on Monday, according to PowerOutage.us. Brad Tutunjian, the CenterPoint vice president for regulatory policy who faced pointed questions from the City Council, defended the company’s response. He said more than 1 million customers had their power restored by Wednesday morning, although the company’s online tracker put the figure at just under a million at the time. “To me, I think that’s a monumental number right there,” Tutunjian said. The company acknowledged that most of the 12,000 workers it brought in to help the recovery effort were not in the Houston area when the storm arrived. Initial forecasts had the storm blowing ashore much farther south along Gulf Coast, near the Texas-Mexico border, before heading toward Houston. The company would not ask third-party workers from other companies and municipalities to pre-position and “ride out” the storm, “because that is not safe,” Tutunjian said. Instead, they are asked to be as close as possible to respond after the storm moves through. One major difficulty with Beryl was restoring power knocked out by fallen trees and branches across the area, Tutunjian said. AP AUDIO: Houston residents stew and swelter after storm Beryl leaves millions without power AP correspondent Jennifer King reports Houston is sweltering as utilities work to restore power after Beryl. “When we have storms such as this, with the tree completely coming down … taking out our lines and our poles, that’s where all the time comes in to do the restoration work,” he said. But council members pressed the executive about why the company, which has been the Houston area for about 100 years, hasn’t been more aggressive in trimming trees during calm weather or putting more of its power lines underground. The company has been putting new lines underground in residential areas for decades, Tutunjian responded. Two council members said they received a text about a house that burned down after reporting a downed power line. The texts reported the fire department said it could not do anything, and the utility did not respond. It’s hardly the first time the Houston area has faced widespread power outages. In 2008, Hurricane Ike made landfall on Galveston Island as a Category 2 storm, bringing flooding and wind damage to the Houston area. It left about 2.2 million CenterPoint customers without power, according to the Harris County Flood Control District, which said that 75% of the power was restored within 10 days. Houston was hit hard in 2021 when Texas’ power grid failed during a deadly winter storm that brought plunging temperatures, snow and ice. Millions of Texans lost power and were left to ride out the storm in frigid homes or flee. As recent as May, storms killed eight people and left nearly a million customers without power. Raquel Desimone has lived in the Houston area since about 2000 and experienced many storms. Still, she was surprised and frustrated having to scramble yet again for power and shelter from the heat. “I went through Rita, Ike, Imelda and Harvey,” Desimone said. “That the infrastructure can’t handle a basic storm, leaving for a Category 1, (it) is sort of crazy to me that I’m having to do this.” Sharon Carr, 62, a lifelong Houston resident, was similarly frustrated by constant disruptions. “Every little thing affects us that way. There’s too much wind, we don’t have power. It’s raining a long time, we don’t have power,” Carr said. ”And it takes three, four, five days to get it back up. Sometimes that’s too long for people that are sickly, can’t stand the heat or don’t have transportation to get to cooling centers.” Texas Lt. Gov. Dan Patrick, who is acting as governor while Gov. Greg Abbott is an economic development trip to Asia, said Tuesday that he would wait until after the recovery effort to focus on CenterPoint’s response and whether the company was poorly prepared. “CenterPoint will have to answer for themselves, if they were prepared, if they were in position. Their company is responsible for that. The state was in position,” he said. “I’ll tell you whether I’m satisfied or not when I have a full report of where their crews were when they were asked to come in.” ___ Vertuno reported from Austin. Nadia Latham in Austin contributed.
3 REITs With Declining Short Interest 2024-07-10 04:06:00+00:00 - 3 REITs With Declining Short Interest Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Many investors purchase stocks without much regard for how many shares of those stocks are being shorted or whether that amount is increasing or decreasing. However, the number of shares sold short to the total number of available shares for trading, or "short interest as a percentage of float," is important. A high percentage of short interest reflects bearish sentiment about the stock. If the short interest percentage is in double digits, that's a red flag. Conversely, a small percentage of short interest would indicate bullishness. But even when short interest is high, if it's declining, that could indicate market sentiment is about to improve. As a stock price rises, short sellers often close out positions, leading to further upside. Don’t Miss: Elon Musk and Jeff Bezos are bullish on one city that could dethrone New York. Investing in its booming real estate market has never been more accessible. Take a look at three real estate investment trusts (REITs) that have been heavily shorted on price pullbacks but recently have shown a decrease in short interest and could be candidates for a price rebound: Sun Communities Inc Sun Communities Inc. (NYSE:SUI) is a residential REIT based in Southfield, MI, that acquires, operates, and develops 296 manufactured home communities and 179 RV communities. Established in 1975, Sun Communities offers rentals and homes for sale, largely in 55-and-over communities. Its April 30 occupancy rate for its manufactured homes was 96.7%. In recent news, on May 2, JMP Securities analyst Aaron Hecht reiterated a Market Outperform rating on Sun Communities and maintained a $150 price target. That's a potential 26.16% appreciation from its closing price of $118.89. On June 18, Sun Communities reported it had 1.69 million shares sold short, an increase of 3.37% since its last report. However, on July 4, Sun Communities reported 1.51 million shares sold short, a decrease of 11.41% since June. The number of days it would take for traders to cover short positions on average declined from 2.67 to 2.27. Sun Communities’s total return is -10.84% year-to-date, and investors seem to be reducing their bets that the stock will continue its decline. Trending: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? VICI Properties Inc. VICI Properties Inc. (NYSE:VICI) is a New York-based diversified experiential REIT that owns and operates gaming, hospitality, and entertainment properties. Its triple-net portfolio includes well-known Las Vegas hotels such as Caesars Palace, MGM Grand, and the Venetian Resort. Story continues VICI Properties was formed as a REIT in 2017 and was a spinoff from Caesars Entertainment Operating Company as part of a Chapter 11 reorganization. It held its IPO on Feb. 1, 2018. Vici Properties' portfolio of 93 properties presently includes 54 gaming and 39 nongaming facilities, with 60,300 hotel rooms and over 500 restaurants, bars, nightclubs and sportsbooks. VICI properties has seen a large inflow of investors buying its corporate bonds this year. On June 21, Morgan Stanley analyst Ronald Kamdem maintained VICI Properties with an Equal-Weight rating and kept the previous $33 price target. That's a potential gain of 18.9% from its closing price of $27.75. On June 4, VICI Properties reported 22.35 million shares, or 2.5% of all available shares, being shorted, an increase of 13.12% since its previous report. However, on July 4, VICI reported a decline of 14.23% in the short percentage of the float. The 20.49 million shares being shorted would take traders 3.2 days on average to cover all short positions. VICI’s total return is -12.49% year-to-date, but investors are starting to reconsider shorting the stock. Medical Properties Trust Inc. Medical Properties Trust Inc. (NYSE:MPW) is a Birmingham, AL-based health care REIT that owns and operates 436 general acute care hospitals with 43,000 licensed beds and other properties in the U.S. and nine other countries, including Europe and Australia. On April 12, Medical Properties Trust announced a quarterly cash dividend of $0.15 per share, payable on May 1 to shareholders of record on April 22. This was the second dividend paid since the dividend cut last September from $0.29 to $0.15 per share. On April 15, Medical Properties Trust jumped 18.80% on news that it sold 75% of its majority interest in five Utah hospitals to an unnamed investment fund. Simultaneous with the closing, the venture placed new non-recourse secured financing, providing $190 million of additional cash to MPW. The transactions give MPW approximately $1.1 billion in cash to reduce outstanding debt, including a $300 million Australian term loan due this year. On July 2, Exane BNP Paribas analyst Nate Crossett downgraded Medical Properties Trust from Outperform to Neutral and cut his price target by 33%, from $6 to $4. This was somewhat unexpected because analysts had been increasing earnings estimates for Medical Properties Trust earlier in 2024. On July 4, Medical Properties Trust announced its short percentage of float fell 4.5% since its previous report. It presently has 196.47 million shares sold short, or 45.38% of all available shares. Short sellers would need 16.52 days to cover all short positions on average. 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Why Jumia Technologies Stock Soared 30% on Tuesday 2024-07-10 02:59:00+00:00 - Jumia Technologies (NYSE: JMIA) is hardly a household name in the United States, but a lot of investors are getting familiar with the rising African e-commerce star on Tuesday, after a Benchmark analyst initiated coverage of Jumia with a "buy" rating and a $14 price target. Valued at just $8 and change before today's rating, Jumia shares soared in afternoon trading, passing $11 a share by 1:45 p.m. ET -- a 30% gain. Introducing Jumia Technologies Writing in StreetInsider.com this morning, Benchmark's Fawne Jiang says that thanks to a demographic explosion in Africa, Jumia is "poised to benefit" from "multi-year and potentially multi-decade e-commerce growth." Africa, argues the analyst, is a market both "vast" and "underserved," and Jumia is offering "tailor-made ... logistics and payment services" to help expand e-commerce on the continent. Adding to the attraction, Jiang notes that Jumia is currently "the only true pan-African e-commerce operator," and therefore the only e-commerce company on the continent that can operate at scale. This sets up the company to either 1) dominate the African market, or 2) present itself as a mergers and acquisitions target for an international e-commerce company... or potentially 1) followed by 2). Is Jumia stock a buy? Now here's the bad news: As great as Jumia's potential may be, for the time being, it's not a profitable company. It lost more than $110 million over the past year, and burned through more than $50 million in cash. Most analysts who follow the stock, moreover, don't see Jumia turning profitable for at least the next couple of years (which is as far out as anyone's making projections). The good news is that Jumia is making steady progress toward profitability. Five years ago, Jumia was losing more than $250 million a year, so losses have already dropped by half. And cash burn five years ago was four times as high as it is today. While an investment in Jumia is no sure thing, the stock does appear to be moving in the right direction, and it bears watching. Should you invest $1,000 in Jumia Technologies Ag right now? Before you buy stock in Jumia Technologies Ag, 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 Jumia Technologies Ag 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 $785,556!* 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*. Story continues See the 10 stocks » *Stock Advisor returns as of July 8, 2024 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Jumia Technologies Stock Soared 30% on Tuesday was originally published by The Motley Fool
Looking for Bargains? Bank of America Suggests 3 Value Stocks to Consider 2024-07-10 01:36:00+00:00 - Every shopper wants to find a bargain; it’s one of the thrills when we go looking to buy things. Finding what we want at a lower price than we planned on spending – that’s always a bit exciting. And this holds true for the stock markets, too. It’s the allure behind value stocks. According to Bank of America, the value stock segment, typically priced lower than their underlying strengths would suggest, has badly lagged the growth stocks so far this year. The bank’s research equity and quant strategist Savita Subramanian describes value stocks as ‘neglected and trading at very low multiples,’ and points out several sectors, including energy stocks, as a place for value-minded investors to look for opportunities. Subramanian’s colleague, Bank of America stock analyst Kalei Akamine, has been taking that stance forward and giving a closer look at three value-priced energy stocks. All three are members of the S&P 500 value index, and the BofA view holds that these are value stocks to consider right now. According to the TipRanks database, the broader Wall Street take on these picks is clear – they are Buy-rated and offer sound, double-digit upside potential. Let’s look into the details and find out just why Bank of America believes they are compelling portfolio choices. ConocoPhillips (COP) We’ll start with ConocoPhillips, one of the world’s largest independent oil and gas exploration and production companies. With a market cap of $131 billion, ConocoPhillips oversees a worldwide operation from its Houston, Texas base; the company has activities in North America, Europe, Africa, the Middle East, and the Asia-Pacific region. Zooming out, we find that ConocoPhillips is deeply involved in the production of most forms of fossil fuel. The company’s ops include all phases of discovery, exploitation, transport, and distribution/marketing of hydrocarbon fuels and other products, including crude oil, natural gas, natural gas liquids, liquified natural gas (LNG), and bitumen, also known as natural asphalt. ConocoPhillips maintained an average daily production last year of 1,826 thousand barrels of oil equivalent, and as of this past Dec 31, claims approximately 6.8 billion barrels of oil equivalent of proved reserves in its land holdings and areas of operation. The company’s largest crude oil and natural gas production region was the ‘Lower 48’ of the US. For return-minded investors, this company maintains a solid commitment to putting capital back into shareholders’ hands. In 2023, the company returned $11 billion to its shareholders, in fulfillment of its policy to return upwards of 30% of its cash from operations. Story continues In the most recent reported quarter, 1Q24, ConocoPhillips had sales and operating revenues that came to $14.5 billion. This was more than $480 million less than had been expected, and was based on total production for the quarter of 1,902 Mboe/d. The company’s bottom line came to $2.03 per share by non-GAAP measures, in line with expectations. The oil and gas sector in the US has seen several high-profile mergers and acquisitions over the past year, and BofA analyst Akamine believes this is a net positive for ConocoPhillips. He writes, “We believe that the current M&A cycle has reshaped the competitive landscape in US E&P to the benefit of names with size and growth. With Concho, Pioneer and Hess acquired since the turn of the decade, there is now a vacuum for high quality large cap oil exposure. We think that would continue to push investors into COP, the largest independent E&P by production and market cap…” Laying out his view of the stock for the long-term, the analyst adds, “In our view, COP’s asset mix and resource depth are the undervalued aspects of the investment case. The depth of the US portfolio has allowed COP to provide peer-leading visibility, with a 10 year plan where target is 4-5% production CAGR. While that sounds modest, there’s a compounding effect that generates significant cash flow growth.” These comments support Akamine’s Buy rating on the shares, and his $147 price target implies a one-year upside of 31%. (To watch Akamine’s track record, click here.) Overall, this oil and gas giant gets a Strong Buy consensus rating from the Street, based on 15 recent reviews that include 13 to Buy against just 2 to Hold. The shares are priced at $112.15, and the $147.85 average target price is only marginally more bullish than the BofA take. (See ConocoPhillips’ stock forecast.) Devon Energy (DVN) Next up is Devon Energy, an Oklahoma-based independent exploration & production firm. Devon focuses its activities on pulling recoverable energy products from onshore assets located in the Continental US. The company operates in five states – Texas, New Mexico, Oklahoma, Wyoming, and North Dakota – and is active in some of the nation’s richest energy regions, including the Williston Basin, the Delaware Basin, and the Eagle Ford formation. Devon, a ~$30 billion company, has worked to develop a stable asset portfolio, one that is designed to promote strong future production growth while operating in an environmentally responsible manner. The company generated solid production numbers during the first quarter of this year, registering an average daily output of 319,000 barrels of oil, 165,000 barrels of natural gas liquids, and 1 billion cubic feet of natural gas. In all, this came to 664,000 barrels of oil equivalent per day, beating the previously published guidance figure by 4%. This production led to total revenues of $3.6 billion, down 5.8% YoY, but in line with the forecasts, while the bottom line EPS figure, at $1.16 by non-GAAP measures, was a nickel above the estimates. The company finished Q1 with $1.15 billion in cash assets on hand, a solid increase from the $887 million reported in 1Q23 – and from the $875 million reported in 4Q23. Checking in with analyst Akamine, we find the BofA energy expert bullish on Devon – citing that moving forward, the company is primed to outperform. Akamine writes, “Our Buy rating on DVN reflects a recovery story centered around DVN recentering its drilling program to its best assets in the New Mexico Delaware – and seeking to reestablish itself as one of the sector’s leading operators… With ’24 initial guidance set on the back of a challenged quarter in 3Q23, we believe DVN has reset the path to ‘beat and raise.’ At 1Q24 results, DVN raised FY24 oil guidance, crediting strong well performance in the Permian, and appears to have gotten some of that operational momentum back. Through YE24, we expect to see Permian oil stabilize around 212mbd, which could set the stage for strong FY25 guidance.” Along with his Buy rating, the analyst puts a $64 price target here, suggesting a 37% upside potential for the next 12 months. Devon Energy has earned a Moderate Buy rating from the Street’s consensus, based on 20 recommendations that break down to 14 Buys and 7 Holds. The shares are priced at $46.73 with an average price target of $60.80, indicating potential for a one-year gain of 30%. (See Devon’s stock forecast.) EOG Resources (EOG) Last on our BofA-backed list is EOG Resources, another of the North American large-cap independent energy companies. EOG, with its market cap of ~$72 billion, is active in the northern and southern Great Plains, as well as the Appalachian Mountain region. The company has productive oil and gas exploration and extraction operations ongoing in the Appalachian Basin, in the Eagle Ford formation, the Midland Basin, and the Permian Basin, and in the Williston, Powder River, and DJ Basins. In addition, the company has an offshore operation in the Columbus Basin, near the island nation of Trinidad & Tobago. EOG is based in Houston, Texas, near the epicenter of the 21st century energy renaissance. On the production side, EOG beat the midpoint of the 1Q24 guidance on crude oil, natural gas liquids, and natural gas, and saw modest gains from 4Q23. The company’s crude oil production in Q1 came to 487.4 MBbld; natural gas liquids reached 231.7 MBbld, and natural gas output came to 1,858 MMcfd. The company’s total production in the quarter, converted to crude oil equivalent volumes, was reported at 1,028.8 MBoed. Those production figures underpinned EOG’s quarterly revenue of $6.12 billion. That was up a modest 1.3% year-over-year, but beat the forecast by almost $1.8 billion. The company’s bottom line earnings figure, at $2.82 per share by non-GAAP measures, was 24 cents per share better than had been anticipated. This company doesn’t just generate solid hydrocarbon production figures; it also generated plenty of cash in 1Q24. EOG’s cash flow from operations was listed as $2.9 billion. After deducting $1.7 billion in capital expenditures, the company reported $1.2 billion in free cash flow. When we consult one last time with BofA’s analyst Akamine, we find that he likes this company for its combination of long-term staying power and cash generation. The energy analyst says, “EOG’s portfolio supports drilling at the current pace in the Permian Basin for 19 years, twice as long as the peer average. Post COVID, valuations have calibrated around FCF yields, which undervalues longer dated inventory. But as the industry depletes core locations and looks to replenish through expensive M&A, we see EOG increasingly well positioned and deserving of a premium multiple.” Akamine goes on to rate these shares as a Buy, and he puts a $151 price target here to point toward an upside of 19.5% on the one-year time frame. (To watch Akamine’s track record, click here.) From the Street as a whole, EOG has a consensus rating of Moderate Buy, based on 22 reviews with a 12 to 10 breakdown favoring the Buys over the Holds. The stock is currently trading for $126.56 and its $149.35 average price target implies a one-year upside potential of 18%. (See EOG’s stock forecast.) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
2 Dividend Stocks to Double Up on Right Now 2024-07-10 01:17:00+00:00 - Starbucks (NASDAQ: SBUX) and Coca-Cola (NYSE: KO) have a lot in common. Besides serving up caffeinated drinks to a thirsty world, both companies also have shareholder-friendly dividend policies -- and their stocks have underperformed the stock market over the last year. Coca-Cola's total return over that period is just 8.7%, while Starbucks saw a 20.5% value drop instead, and the S&P 500 gained 28.6%. In other words, these household names come with strong dividend yields and the promise of continued payout boosts for years to come. And in my eyes, the rumors of Starbucks' and Coke's demise have been greatly exaggerated. The top-shelf quality stocks are on fire sale right now. If you're looking for a great dividend stock to buy today, you should consider doubling down on Coca-Cola and Starbucks. Here's why. KO Dividend Chart A shared history of dividend increases As you can see in the chart above, Starbucks and Coca-Cola are in the habit of increasing their dividend payouts every year. Coca-Cola's dividend growth history is significantly longer, spanning several decades. This long-term growth provides investors with a sense of security and predictability, which is particularly appealing for those seeking stable income. If Coke has raised its payouts through thick and thin for 63 years (which it did), the company seems likely to continue boosting those quarterly dividend checks regardless of downturns and business challenges in the future. In contrast, the green Starbucks line may be shorter but also comes with a much steeper growth trajectory. After starting its dividend payments in the spring of 2010, Starbucks has rapidly increased its payouts. This vibrant policy trend reflects the company's dynamic growth and strong financial health. Coca-Cola offers a more consistent and historically reliable dividend, which might be preferable for conservative investors who look for long-term stability above all else. On the other hand, Starbucks' higher dividend growth rate can appeal to investors who are willing to take on a bit more risk for the potential of higher returns. KO Free Cash Flow Chart Robust free cash flows supporting the payouts The chart above shows you the robust free cash flows behind those inviting dividend payouts. It's great to see dividends financed by strong cash flows, and these great companies deliver that quality with gusto. Coca-Cola spent 79% of its free cash flows on dividend payments over the last year, and Starbucks' cash-based payout ratio stopped at 63%. Now, both Starbucks and Coca-Cola are facing significant business challenges. Shifting consumer preferences are always a concern, along with a never-ending influx of new rivals. Story continues However, these companies address their challenges in very different ways. Starbucks is doubling down on its premium image, expanding its high-end Reserve stores and personalized digital experiences. As part of the digital strategy, the company is using its loyalty program to increase customer engagement and retention. Coca-Cola, on the other hand, is diversifying its product portfolio, moving beyond sugary sodas into a broad range of healthier options like bottled water, teas, and plant-based drinks. It's also investing heavily in sustainable packaging solutions to address growing environmental concerns. Both companies are actively adapting to the changing landscape, but their strategies reflect their unique strengths and ultra-familiar brand identities. Fizzy dividends for the long haul With their hefty cash flows and smart strategies, both Coca-Cola and Starbucks are set to keep those dividend payments flowing for years to come. These companies have robust free cash flows that not only cover their dividends but also leave plenty of room for growth and innovation. With its decades-long history of stable dividends, Coca-Cola is like a reliable friend who's always there when you need them. You can count on it to keep delivering those quarterly checks, come rain or shine. Starbucks is an energetic relative newcomer with a rapid growth trend. It's on a roll, quickly boosting its payouts and showing no signs of slowing down. These companies are masters of dealing with business challenges and playing to their strengths. For dividend investors, the future with Coca-Cola and Starbucks looks bright and secure -- and their stocks should soon recover from this year's price dip. It's high time to take action and buy some shares of these discounted industry titans today. Should you invest $1,000 in Starbucks right now? Before you buy stock in Starbucks, 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 Starbucks 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 $785,556!* 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 8, 2024 Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy. 2 Dividend Stocks to Double Up on Right Now was originally published by The Motley Fool
Fifth Third Bank illegally seized people's cars after overcharging them, feds say 2024-07-09 22:33:00+00:00 - The Consumer Financial Protection Bureau (CFPB) slapped Fifth Third Bank with a $20 million fine on Tuesday for allegedly forcing auto loan customers to buy unnecessary car insurance policies, and in some cases repossessing their vehicles when they defaulted. "The CFPB has caught Fifth Third Bank illegally loading up auto loan bills with excessive charges, with almost 1,000 families losing their cars to repossession," Director Rohit Chopra said in a statement Tuesday. "We are ordering the senior executives and board of directors at Fifth Third to clean up these broken business practices or else face further consequences." Employees at the Ohio-based bank also illegally opened fake bank accounts for roughly 35,000 customers without their knowledge or consent under a "cross-sell" sales goal initiative from top management, the CFPB alleged. Fifth Third bank managers and branch-level employees had their performance reviews and overall employment tied to meeting sales goals of offering more products to existing customers, CPFB officials said. The fine settles a March 2020 lawsuit CFPB filed against Fifth Third which centered on the unauthorized bank accounts. As part of the CFPB's punishment, Fifth Third must compensate the 35,000 customers who had accounts opened in their names. The bank is also banned from creating sales goals that incentivize employees for opening fake accounts. Fifth Third must pay a $15 million penalty for opening the fake accounts and another $5 million for forcing customers who already had auto insurance to get duplicative coverage, CFPB officials said. Cars repossessed when bogus charges went unpaid Fifth Third engaged in the auto insurance practice for years, CFPB officials said, adding that the bank charged customers fees for duplicative coverage on cars already insured by another company. Some Fifth Third customers who lapsed on prior coverage but managed to obtain insurance within 30 days of a lapse, were also charged for duplicative coverage, according to the CFPB. "These borrowers paid over $12.7 million in illegal, worthless fees," the bureau said in a news release. "While consumers received coverage with no value, Fifth Third Bank profited." Fifth Third said in a statement Tuesday that its unauthorized bank accounts practice happened "to a limited number of accounts" between 2010 and 2016. The bank said it voluntarily discontinued its auto insurance practice in January 2019, which was before the CFPB began investigating the company. "We have already taken significant action to address these legacy matters, including identifying issues and taking the initiative to set things right," Susan Zaunbrecher, chief legal officer of Fifth Third, said in the statement. "We consistently put our customers at the center of everything we do." Fifth Third, which was fined $18 million in 2015 for discriminatory auto loan practices against Black and Hispanic customers, has $62 billion in assets under management as of April. The bank has 1,087 branches across 12 states in the South and Midwest. Wall Street analysts said paying the $20 million fine will actually save Fifth Third money. "We believe the actions put these issues to bed and should also result in lower litigation costs over time," analysts at Jefferies said in a note Tuesday. "The auto repossession item is new to the public, but our understanding is that it relates to a very small percentage of auto loans. The small $5 million fine points to the relative severity of this issue, in our opinion."
Big Lots to close up to 40 stores, and its survival is in doubt 2024-07-09 22:22:00+00:00 - Big Lots plans to shutter three times more stores than it will open in 2024, with the discount retailer pointing to a retreat in spending by its bargain-hunting base. "We currently expect to open three stores and close 35 to 40," the Columbus, Ohio-based retailer stated in a regulatory filing with the Securities and Exchange Commission. The company also said it expects further operating losses and cited "substantial doubt" about its ability to continue as a going concern. The retailer's distress call came amid other indications that inflation-weary Americans are tightening their belts and spending less, with U.S. economic growth slowing in the first three months of 2024. Big Lots last month reported a net loss of $205 million in the quarter ending May 4, 2024, with its president and CEO Bruce Thorn stating at the time that the company's sales had taken a hit "due largely to a continued pullback in consumer spending by our core customers, particularly in high ticket discretionary items." The retailer's sales fell 10% to $1 billion in its first quarter, according to Big Lots, which operates more than 1,300 stores in 48 states. Big Lots did not immediately respond to a request for comment as to the locations of stores facing closure.
Every employee needs a 'Yay Folder,' says author of 'Smart, Not Loud': Here's what that means 2024-07-09 22:08:00+00:00 - Jessica Chen says she was raised in what she would describe as a "quiet culture." She was taught to do her work, hit her goals, and not cause any trouble. In her recently released book "Smart, Not Loud" the CEO of SoulCast, a communication training agency, reflects on how not knowing how or when to speak up for herself has affected her in the workplace. "Growing up, I was never taught the importance of making myself visible, of continually following up as a way of staying top of mind," she wrote. "I was never taught the importance of being proactive or how to speak up with tact." After a few years in the workforce, she realized silently completing tasks is a poor strategy for getting ahead. "What actually mattered was the ability to showcase myself," she wrote. "Not only that, communication and being visible were required — and rewarded." In her book, she outlines a few strategies that can help you celebrate your wins and leverage them to get promotions all without being loud or brash. One you can do in seconds: create a "Yay Folder."
States and Creditors for Purdue Pharma Threaten Sacklers With Gush of Lawsuits 2024-07-09 21:44:28.845000+00:00 - Purdue Pharma’s creditors and more than 40 states are preparing a barrage of legal actions against members of the Sackler family, less than two weeks after the Supreme Court denied them legal immunity for their role as the company’s owners in the opioid crisis. Purdue itself is supporting a proposal by a group of its creditors to sue individual Sacklers for transferring billions of dollars out of the company and into family trusts and overseas holding companies. The motions, some filed and others in the planning stage, are part of intense maneuvering to pressure the Sacklers to settle thousands of opioid lawsuits brought years ago against them and their company. Negotiations are expected to begin imminently in mediation sessions and are widely seen as a last-ditch effort to reach a deal. If one isn’t struck by Sept. 9, thousands of lawsuits against the company and family members, which have been on hold for nearly five years, are likely to proceed. The Supreme Court’s ruling, on June 27, effectively dissolved an agreement negotiated between the Sacklers and Purdue, the manufacturer of the prescription opioid OxyContin, and states, local and tribal governments as well as individuals and other groups. Under that plan, the Sackers had agreed to contribute $6 billion — but only on the condition that they be granted protection from all civil lawsuits involving opioid claims.
The US Navy ousted the commanding officer of USS Hershel Williams two months after the tanker-like sea base ran aground in Africa 2024-07-09 21:42:44+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview The Navy has relieved the commanding officer of the expeditionary mobile base ship USS Hershel "Woody" Williams two months after the vessel briefly ran aground outside the African country of Gabon, a Navy statement announced Monday. Capt. Lenard Mitchell, the commander of the Williams' "Gold" crew, was relieved by Vice Adm. Thomas Ishee, the commander of the US 6th Fleet, "due to a loss of confidence in his ability to command." This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. The Navy's statement added that "the relief occurred as a result of an investigation into the soft grounding" of the Williams near the port of Libreville, Gabon, on May 9 and, "while the investigation is still open, sufficient findings of fact emerged during the investigation to warrant the relief of the commanding officer." Typically, the Navy is quick to remove a ship's commander after a grounding — usually moving within days or, at most, a week or two. Advertisement When the cruiser USS Port Royal ran aground on a shoal off the coast of Honolulu in 2009, the Navy waited around four days — until the ship was free — to relieve its commander. The guided-missile destroyer USS Howard transits the Pacific Ocean. US Navy photo by Petty Officer 3rd Class Shawn J. Stewart When the USS Howard suffered a soft grounding near the Indonesian island of Bali on August 10, 2023, the Navy relieved its skipper, Cmdr. Kenji Igawa, just nine days later . In 2014, the Navy took about two weeks to fire the commander of a frigate — the USS Taylor — that ran aground in the Black Sea. Related stories When Military.com asked Navy officials in the weeks after the Williams' grounding why Mitchell had not been relieved, no one was able to offer an explanation. Advertisement The Navy's statement also did not explain why this relief took almost two months. The Navy said that Mitchell will be temporarily assigned to Commander, Naval Surface Forces Atlantic, while Capt. Michael Concannon will assume the duties of interim commanding officer aboard the Williams. The Williams is currently deployed to the waters off Africa and "there is no impact to the command's mission or schedule due to the relief," the statement noted. Capt. Lenard Mitchell, then-commanding officer of USS Hershel "Woody" Williams, delivers remarks during a ceremony in the hangar bay. US Navy photo by Mass Communication Specialist 2nd Class Conner D. Blake/Released Mitchell is now the ninth commander to be fired for a "loss of the trust and confidence" that the Navy has publicly acknowledged . A total of 13 commanders have now been relieved this year, though not all for losses of confidence. Navy officials have said that commanders can also be relieved for medical reasons or ask to be relieved themselves. Advertisement Navy officials have previously said the sea service relieved 15 commanding officers in 2023 over a loss of confidence. There are currently around 1,600 commanding officers in the active-duty Navy across all communities. Since the start of 2024, the Navy has fired three of its commanders over drunken driving incidents. Two were submarine skippers, and one was a SEAL commodore. In January, the Navy fired Capt. Geoffry Patterson — the commander of the USS Georgia's blue crew — after he was arrested early on January 9 for driving under the influence and improper lane change. Advertisement Capt. Geoffry Patterson, then an incoming commanding officer of USS Georgia, salutes Capt. Patrick Clark, outgoing commanding officer during a change of command ceremony in Souda Bay, Crete. US Navy photo Similarly, Capt. Richard Zaszewski, formerly commodore of Navy Special Warfare Group Eight , was arrested January 19 for driving with a blood alcohol content between 0.15% and 0.2% — though that incident wasn't made public until March . Finally, Capt. Kurt Balagna, who was the commander of the USS Ohio sub's gold crew, was also arrested in March by Washington state police for driving with a blood alcohol content of around 0.24%.
A power ranking of Trump's potential vice presidents 2024-07-09 21:33:32+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Former President Donald Trump is expected to name is running mate in less than a week, ending his vice presidential selection process. According to multiple reports, Trump has likely narrowed his focus to the shortlist of North Dakota Gov. Doug Burgum, Sen. Marco Rubio of Florida, and Sen. JD Vance of Ohio. In the end, only Trump knows what will happen. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. It's quite possible the former president could turn to someone else on the much larger list of names he once viewed as potential vice presidents. Trump told Fox News on Monday that President Joe Biden's disastrous debate has factored in slightly into his decision, given the small possibility that Biden could drop out. Advertisement Even if he wins in November, Trump will reenter office as a lame duck. It means his apprentice will have the inside track to replace him in 2028 — a fundamentally different reality than the one he faced in 2016. So, with that in mind, here's Business Insider's final vice presidential power ranking. Here's where things stand: Sen. JD Vance, a Ohio Republican, could end up becoming one of the youngest vice presidents in modern memory. Andrew Harnik/Getty Images 1. Sen. JD Vance of Ohio (Previously 2) Vance has been one of the biggest risers since our initial rankings almost two months ago. It's not hard to see why. The 39-year-old has pivoted far beyond his "Never Trumper" past. He's now as close to Trump's base as any elected official. He's also reportedly close to Donald Trump Jr. Vance was also the first of Trump's possible vice presidential picks to go to Manhattan to show his support during the former president's historic criminal trial. Advertisement Vance hasn't been afraid to push Trump's worldview in a chamber that, unlike the House, is more likely to defy the former president. It's been an extraordinary rise since the Ohioian was sworn in just last year. His selection would underline the expectation Trump would ensure his second administration is filled with loyalists. But Vance would likely do little to help Trump expand his appeal. As a former venture capitalist, Vance has ties to the more conservative Silicon Valley leaders who could help buck up Trump's fundraising. Like many on this list, Vance has questioned the results of the 2020 election. He's gone even further recently by suggesting that former Vice President Mike Pence has overplayed the extent to which his life was under threat during the Capitol riot. Gov. Doug Burgum of North Dakota Ethan Miller/Getty Images 2. Gov. Doug Burgum of North Dakota (Previously 4) North Dakota Gov. Doug Burgum spent his brief 2024 run paying supporters to donate to his campaign. His campaign's biggest moment was arguably when he injured his leg before a primary debate. Advertisement Despite that inauspicious moment and a forgettable primary effort, he's receiving serious consideration. Burgum's newness to the national scene remains his biggest obstacle. Burgum has gained some key allies while under Trump's reported consideration. The Wall Street Journal Editorial board, often considered the voice of the GOP's establishment, is behind him. So, too, is Kevin O'Leary, the Shark Tank veteran. Other Wall Street types are also intrigued by his possibility. Related stories Then again, Trump tried a Midwestern governor straight out of central casting who was not supposed to outshine him. Unlike Pence, Burgum blazed a path in business before getting into politics. The North Dakotan sold his software company to Microsoft for over $1 billion in 2001. As CNBC pointed out, Burgum could write a massive check to Trump's campaign. Former President Donald Trump campaigned for Sen. Marco Rubio of Florida, a former 2016 GOP arrival, ahead of the 2022 midterms. Joe Raedle/Getty Images 3. Sen. Marco Rubio of Florida (Previously 3) Florida, man. If Rubio represented any other state, he would be atop our list. That's because the biggest hurdle for Rubio isn't likely anything in his past. Instead, he faces very real concerns about residing in the same state as Trump. Advertisement As Politifact explained, the Constitution has been interpreted not to allow electors from the same state to vote for a president and vice president who also reside in that state. That means a Trump-Rubio ticket could lose out on Florida's 30 electoral votes, even if they won the state. According to the Bulwark, Rubio would be willing to move, but he might have to make up his mind soon. Rubio would be the most obvious choice for a Trump pick poised to help the GOP hold the White House in 2028. After all, the Floridian was once proclaimed the future of the Republican Party. He is not a MAGA-whisper like Vance, but the Floridian found ways other ways work with his former 2016 primary rival while in office. Rubio has also shown he'll shift his views, most notably he was one of the main architects of the bipartisan, sweeping 2013 immigration legislation that would have offered undocumented immigrants a pathway to citizenship. Like many 2016 foes, Rubio is also on record hammering Trump — including his cringey mocking of the future president's hand size (Rubio later apologized for that). Advertisement Former President Donald Trump smiles behind Sen. Tim Scott of South Carolina, who endorsed Trump after ending his own 2024 campaign. TIMOTHY A. CLARY/AFP via Getty Images 4. Sen. Tim Scott of South Carolina (Previously 1): Scott has been on Trump's shortlist from the beginning. He also led the other two editions of our power rankings. He doesn't have the constitutional questions that Rubio would face. He has been on the national stage longer than Burgum. He could also expand Trump's appeal with a historic candidacy. Scott behaved like he wanted the job, but it doesn't seem like he made the final cut. In early June, Scott's allied political action committee would spend $14 million targeting voters of color. He has shown fundraising prowess that could be greatly appreciated down the stretch of the general election. It helps that Scott has a relationship with Oracle co-founder Larry Ellison, who, according to CNBC, is pushing him to get picked. The 58-year-old would also be a historic choice. He's already the first Black Republican elected from the South since Reconstruction. Some Trump aides have urged the former president to balance out his 2024 ticket by picking a person of color. Advertisement That all being said, we've talked up Scott before. And he dropped out before the Iowa caucuses. Rep. Elise Stefanik of New York was the first member of House GOP leadership to endorse Trump. Chip Somodevilla/Getty Images 5. Rep. Elise Stefanik of New York (Previously 5) Stefanik has clearly staked her ground as a Trump ally. She was the first member of House leadership to have endorsed Trump for his 2024 run. She endeared herself to his political base for her defense of the president during his first impeachment trial. Stefanik garnered national attention recently for grilling college presidents over their handling of antisemitism. She was once more liberal than Rep. Liz Cheney of Wyoming, but her rise in the GOP has coincided with a reinvention as a Trump-aligned Republican. The New Yorker hails from a state that is never going to back Trump. But scores of studies show that the home-state boosts for vice presidents isn't all it's cracked up to be. Perhaps it's not surprising then that none of the top-tier names on Trump's list hail from a current swing state. Still, Stefanik's selection would be historic. She would be only the fourth woman to share a major party's ticket. Republicans, especially Trump, have struggled with suburban women, but it's not clear that tapping a woman would automatically cure that problem. Biden may also delight in the selection of a House GOP leader. The president has repeatedly called attention to the drama that has gripped the lower chamber. Voters are likely to care more about the economy than Speaker Mike Johnson's job status, but the level of in-fighting in the GOP is so bad that multiple sitting lawmakers have quit their jobs early. Advertisement The rest of the pack 6. Sen. Tom Cotton of Arkansas (Previously 7): Cotton's career is bookended by fights with The New York Times — mostly recently over his 2020 op-ed calling for Trump to invoke the Insurrection Act to quell riots in the wake of George Floyd's killing. The GOP senator was a loyal Trump ally, including defending the then-president's push to buy Greenland. Unlike others on this list, Cotton notably did not vote against certifying the 2020 election. He was also harshly critical of one of Trump's biggest bipartisan achievements, the First Step Act, arguing that criminal justice reform failed to do enough to protect public safety. 7. Former HUD Secretary Ben Carson (Previously 6): Trump still has close feelings for his former Cabinet official. Carson also hails from the key state of Michigan. He's also still an avowed supporter of a national abortion ban, a topic Trump has tried everything in his power to avoid. Former White House chief of staff Mick Mulvaney thinks Carson will be picked because unlike other vice presidential hopefuls, he doesn't covet the top job. 8. Rep. Byron Donalds of Florida (Previously 8): Like Rubio, Donalds gets docked for the potential home state conundrum. Donalds has risen rapidly in the eyes of many of his House GOP colleagues. He has close relationships with the House conservatives that forced former Speaker Kevin McCarthy's historic ouster and have frustrated Speaker Mike Johnson, but he hasn't participated in either effort to challenge the men directly. Advertisement 9. Gov. Glenn Youngkin of Virginia (Previously 10): Youngkin skipped out on a late 2024 run to focus on state legislative elections. The Republican was supposed to show how the GOP can talk about abortion in competitive areas. It didn't work out. Still, he has the personal wealth and connections to seriously help a Trump campaign. Plus, per CNBC, Rupert Murdoch likes him. 10. A wild card like Gov. Sarah Huckabee Sanders of Arkansas: Sanders would offer diversity to a ticket, something some Trump advisors said they wanted when this process started. She also cut a national profile for herself as White House press secretary. 11. Anyone else: Former Rep. Tulsi Gabbard of Hawaii and entrepreneur Vivek Ramaswamy are off our list, but either of them are less risky than someone who killed a dog. 12. South Dakota Gov. Kristi Noem (Still last): Noem could have been a contender. But when your top Google results are about dog killing, it's safe to say your chances are pretty much over. The prediction markets seem to think so, too.
House backs bills to roll back energy efficiency standards for refrigerators, dishwashers 2024-07-09 21:26:12+00:00 - WASHINGTON (AP) — House Republicans on Tuesday approved two bills rolling back Energy Department efficiency standards on refrigerators and dishwashers. Republicans called the Biden administration rules expensive and impractical, while Democrats defended them as a way for consumers to save money and reduce greenhouse gas pollution that contributes to climate change. A bill by Republican Rep. Mariannette Miller-Meeks of Iowa would curtail Energy Department rules on refrigerators. A separate measure by New York Republican Rep. Nick Langworthy would bar the administration from implementing or enforcing new efficiency rules if they are not “cost-effective or technologically feasible” and result in significant energy conservation. The refrigerator bill was approved, 212-192, while the dishwasher measure was adopted, 214-192. Both bills now go to the Democratic-controlled Senate where they are unlikely to advance. The White House said it strongly opposes both measures but stopped short of a veto threat if the bills reach Biden’s desk. The bills include “vague” and misleading language that “would add uncertainty to the implementation of these (efficiency) standards and create unnecessary hurdles for DOE in making future updates,’' the White House said in a statement. Langworthy said his bill, the Stop Unaffordable Dishwasher Standards, or SUDS Act, would “put the brakes on the Biden administration’s relentless assault on efficient, affordable and reliable appliances for everyday Americans through overbearing regulations.’' The Energy Department and other agencies have “abused and twisted” a 1970s-era law aimed at energy conservation in order “to serve the radical, woke, environmental agenda of the far left,’' Langworthy said during debate on the House floor. “Why should Americans who are putting their groceries on credit cards be forced to deal with more out-of-touch expensive regulations?’' Miller-Meeks used similar language, saying the Biden administration has implemented “outrageous regulations that only serve to limit consumer choice, increase energy prices and control everything Americans are able to do on a day-to-day basis.’' New Jersey Rep. Frank Pallone, the top Democrat on the House Energy and Commerce Committee, said Republicans had it wrong. Instead of lowering costs, the proposals would increase home energy bills for American families, he said. Energy efficiency standards “save Americans money on their energy bills, boost innovation by modernizing appliances for the future and reduce greenhouse gas pollution in our ongoing efforts to combat the climate crisis,’' Pallone said. Current and planned actions by the Biden administration on energy efficiency will save Americans $1 trillion over the next 30 years and will reduce greenhouse gas emissions by more than 2.5 billion metric tons, Pallone said. Pallone, who has served in Congress for 36 years, said energy efficiency “used to be a bipartisan issue, but not anymore. Extreme Republicans have decided that they’d rather do the bidding of corporate polluters as they continue to move forward with their polluters-over-people agenda.’' Rep. Cathy McMorris Rodgers of Washington state, the Republican chair of the energy panel, said modern appliances such as the home dishwasher and refrigerator “were not the result of aggressive government mandates or regulation, but of American ingenuity.” “Sadly,” she added, “the Biden administration’s war on American energy is now reaching inside Americans’ homes” to what she called “out-of-control appliance mandates.’' Rep. Katie Porter, D-California, said many Republicans who back the appliance measures don’t even know how dishwashers work or how much they cost. “I know a lot about dishwashers, because I’m a single mom and I load and unload and load and unload and rinse and buy detergent,’' Porter said. She asked if Republican colleagues know how much it costs per month to run an average dishwasher. When no one replied, Porter answered her own question, saying typical costs are about $2 to $4 a month. “In other words, about one-third of a frappuccino,’' she said. Contrary to Republican claims that dishwashers often don’t work correctly because of complicated federal rules, the most important factor to ensure clean dishes “is loading it correctly,’' Porter said. “This bill is ridiculous,’' she added. “It is Congress at its worst. A bunch of people who haven’t unloaded a dishwasher ever telling the American people ... what kind of dishwashers they should or should not be able to buy.’' Seven Democrats supported both bills. Michigan Rep. John Moolenaar was the only Republican to oppose the refrigerator bill. No Republican voted against the dishwasher bill.
Jim Inhofe, climate crisis-denying former senator, dies at 89 2024-07-09 21:12:42+00:00 - Former Sen. Jim Inhofe, who went to lengths as a lawmaker to deny that climate change is exacerbated by human activity, died this week at 89 following a stroke, his family said. Oklahoma's longest-serving senator, Inhofe was first elected to the Senate in 1994. He resigned in 2023, saying at the time that he wanted to spend more time with his wife. After he left office, however, he told the Tulsa World in an interview that he had stepped down because he had long Covid. Inhofe's views often reflected the extreme leanings of his party. He was intensely homophobic (in opposing same-sex marriage, he once boasted to the Senate that in the "recorded history" of his family "we've never had a divorce or any kind of a homosexual relationship"), he was rabidly pro-gun (he once blamed mass shootings on "permissive laws" in sanctuary cities) and opposed abortion rights. But Inhofe was best known for his zealous denial of the climate crisis and that human activity was its primary driver. (The New York Times reported, "Mining, oil, gas, coal and utility interests were generous contributors to Mr. Inhofe’s Senate campaigns.") Inhofe called climate change “the greatest hoax ever perpetrated on the American people.” In 2015, when he was chairman of the Senate Environment and Public Works Committee, he infamously took a snowball onto the Senate floor during a snowstorm, ostensibly to demonstrate that global warming was not real. Staffers told Politico's E&E News in 2020 that the stunt was intended to highlight media hypocrisy. “Whenever it’s hot in the summer, everyone’s like ‘Oh, my gosh, climate change!’ But if it’s something that doesn’t play into the global warming element, like a snowstorm in February, people don’t say, ‘Oh, my gosh, it’s climate change,’” the staffer who wrote the speech told the outlet. The Oklahoma Republican was also a staunch supporter of Donald Trump, who shared his denial of climate science. Inhofe had an outsize influence on the Trump administration's environmental agenda, according to The Washington Post. Yet he broke with members of his own party in 2020, opting to certify Joe Biden's election win in a move that earned him backlash among some Republicans. Twice, however, Inhofe voted against impeaching Trump.