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Constellation delivers beer profits, but weakness in wine prompts a downgrade 2024-07-03 18:16:00+00:00 - Constellation Brands reported an earnings beat on Wednesday that was driven by strength in its beer business. However, shares fell 4% after an initial move up, as investors — including us — remain troubled by continued weakness in the wines and spirits business. Comparable net sales for the three months ended May 31 increased 6% year over year to $2.662 billion, missing Wall Street's expectations of $2.671 billion, according to LSEG. Adjusted earnings-per-share (EPS) increased 17% compared with the same period last year, to $3.57, a beat versus the $3.46 per share predicted by analysts. Constellation Brands Why we own it : We like Constellation Brands for its beer franchise, which includes popular Mexican brands Modelo, Corona and Pacifico. We would like Constellation to concentrate on beer and divest its wine and spirits business. Competitors : Anheuser-Busch Inbev and Molson Coors Weight in Club portfolio : 2.5% Most recent buy : April 16, 2024 Initiated: May 5, 2022 Bottom line This quarter reaffirmed our belief that Constellation has a great beer business that is weighed down by its wine-and-spirits unit. While overall sales came up short, CEO Bill Newlands said it still beat the overall consumer packaged goods growth by 4.5 percentage points. That outperformance was largely driven by the growth of its beer business, which attained the second largest share gain in the entire beverage industry and the top share gain in alcoholic beverages. We were again pleased to see that the increase in beer sales was driven by strong growth in shipment volume. Remember, the ability to grow sales via increased volume is crucial given the inflationary dynamics we've had to deal with coming out of Covid. That's because consumers are starting to push back on high prices. The ability to grow sales via increased volumes alleviates some pressure on management to take action on prices, a key factor that should help the company continue gaining market share. Operating cash flow came in light, but free cash flow was largely in line with expectations. As members know, cash flow is the key to shareholder returns and indeed, management paid out $185 million in dividends during the quarter, while repurchasing $200 million worth of shares and repurchased another $40 million worth of shares in June. The team continues to target a net leverage ratio of 3 times by the end of the fiscal year. Management said it is working to right the wine-and-spirits business and expects to see improvements in the back half of the year as "operational and commercial execution initiatives" identified in the fourth quarter of the last fiscal year and started in the first quarter of this year take hold. Guidance is in line with the expectation that weakness in the business is bottoming out. We maintain the view that a rebound or divestiture of the wine-and-spirits segment remains key to the stock reaching new highs. While we are sticking with the name given the strength in beer, we opted to trim our position and downgrade the stock to a 2 rating. We want to see actual progress before getting more positive on the trajectory of the stock from here. We are keeping our price target of $300. Quarterly results Constellation's wine-and-spirits division remains a drag, with net sales falling 7% to $389 million, slightly below Street estimates, while operating income dropped 25% to around $60 million. Operating margin for the segment was down 370 basis points to 15.3%, worse than expectations. The weakness is attributable to lower volumes and higher costs of goods sold, which more than offset the benefits of lower operating expenses elsewhere. Shipment volumes declined 5.1% due to "challenging" market conditions, primarily in the U.S. wholesale channel. Depletions, a key metric that represents how much was product was sold to retailers by a distributor, were down 12.7% from a year ago. "The tactical investments in the 11 brands that represent 75% of net sales and over 80% of volumes for our wine and spirits business in fiscal '24 are now underway, and we expect to see improvements in this select group of our most scaled offerings over the remainder of the year," the company said during its post-earnings call with investors. Beer segment results, on the other hand, remain largely positive. Though sales did come in a bit light versus estimates, the result still amounts to 8% year-over-year growth. Moreover, strong profitability led to a beat on operating income despite the topline miss. Operating margin expansion resulted from greater operating leverage (fixed costs were more spread out), along with benefits from ongoing cost-saving initiatives, and timing and efficiencies in marketing investments. Shipments increased 7.6% year over year. Depletions were up 6.4% versus the year-ago period, led by growth in Modelo Especial (11%), Pacifico (21%), and Modelo Chelada (over 5%). Citing Circana channel data, the company said its beer business was the top dollar sales share gainer for the 11 th consecutive quarter and the top volume share gainer in the total beer category in the U.S. Moreover, Constellations beer portfolio has 4 of the top 15 dollar share-gaining brands in the quarter. Guidance Management reaffirmed the guidance it gave in the previous quarter. Net sales are expected to increase 6% to 7%, driven by 7% to 9% growth in beer. Sales of wine and spirits are pegged at down 0.5% to up 0.5%. Enterprise operating income is expected to increase 10% to 12% on a comparable basis, with beer up 10% to 12% and wine and spirits down 9% to 11%. Management expects comparable earnings to be $13.50 to $13.80 per share. Operating cash flow is forecasted to land between $2.8 billion and $3.0 billion, with free cash flow of $1.4 billion and $1.5 billion, after accounting for $1.4 billion to $1.5 billion on capital expenditures, with $1.2 billion of that targeted to support capacity additions to its Mexican beer operations. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Bottles of Corona, Modelo and Pacifico beer are displayed on the a shelf at a supermarket on April 6, 2017 in San Rafael, California. Justin Sullivan | Getty Images

Jim Ratcliffe’s Ineos pulls launch of Fusilier electric SUV 2024-07-03 18:00:00+00:00 - Sir Jim Ratcliffe’s Ineos has delayed the launch of its Fusilier electric SUV, blaming weak consumer demand and uncertainty about government policies. Ratcliffe only unveiled plans to produce the low-emission vehicles in February, with production expected to begin in 2027. However, it emerged on Wednesday that the project to build the Fusilier, to be marketed as a plug-in hybrid and electric vehicle (EV), had been delayed indefinitely. Ratcliffe is the founder and chief executive of Ineos, the fracking to chemicals group. The company is also a minority investor in Premier League football club Manchester United and has been pushing into new sectors, including electric car-making. Ratcliffe had said the Fusilier vehicle, smaller than the company’s existing Grenadier 4x4, would be equipped with an electric motor powered by a battery, as well as a range-extender option using a small gas engine to keep the battery charged up. However, the company said regulatory changes could hurt the viability of its gas-engine range-extender. The company said: “We are delaying the launch of the Ineos Fusilier for two reasons: reluctant consumer uptake of EVs, and industry uncertainty around tariffs, timings, and taxation.” It added that there needs to be long-term clarity from policymakers to meet net zero targets. An Ineos Automotive spokesperson said that the gas-powered range-extender would be banned in Europe and the UK in 2035, according to Bloomberg, which first reported the delay. If the Labour party are successful in Thursday’s general election, it has pledged to bring forward the ban on the sale of new petrol cars by five years to 2030. The EU’s move to impose new tariffs on imports of Chinese-made EVs into the trading bloc has prompted fears of a global trade war, centred on EVs. The tariffs of up to 38% on imports of Chinese EVs come into effect on Thursday barring a last minute U-turn. They will be imposed on top of the existing 10% levy on cars imported into the EU, meaning Chinese-made EVs face total tariffs of up to 48%. On Wednesday, the BMW chief executive, Oliver Zipse, criticised the move. “The introduction of additional import duties leads to a dead end,” he said. “It does not strengthen the competitiveness of European manufacturers.”

Jeff Bezos to sell $5bn of Amazon shares after stock hits record high 2024-07-03 17:57:00+00:00 - Amazon founder and executive chair Jeff Bezos is planning to sell almost $5bn worth of shares in the e-commerce giant, a regulatory filing showed, after its stock hit a record high. The proposed sale of 25m shares was disclosed in a notice filed after market hours on Tuesday. The stock had hit an all-time high of $200.43 during the session. It has jumped more than 30% so far this year, outpacing the 4% gain in the Dow Jones Industrial Average index. After the sale plan, Bezos would own about 912m Amazon shares, or 8.8% of the outstanding stock. He sold shares worth roughly $8.5bn in February, after the stock rallied 80% in 2023. Amazon posted upbeat first-quarter results in April, as the Seattle-based technology giant rode the artificial intelligence wave. Bezos is ranked the second-richest person in the world with a net worth of $214.4bn, according to Forbes. He is also the founder of space company Blue Origin, which launched a six-person crew to the edge of space in May.

Israel-Hezbollah war is looming: What to know 2024-07-03 17:56:28+00:00 - Benny Gantz, a former Israel Defense Forces chief of staff who left his country's war Cabinet last month, was blunt during a security conference when addressing the ongoing conflict at the Israel-Lebanon border last week. “We can bring Lebanon completely into the dark, and take apart Hezbollah’s power in days,” Gantz said. If there is anything Middle East experts can agree on, it’s that a large-scale war between Israel and Hezbollah would be a travesty for all involved. Inside Israel, it’s a different story; many Israelis believe another war with Hezbollah is inevitable, if not long overdue given the security environment Israel has faced since Hamas’ Oct. 7 attack undermined the IDF’s perceived invincibility. The IDF have already approved plans for an offensive in Lebanon, and the language from some Israeli officials, including Gantz, suggests an operation will occur sooner or later. Israel's Prime Minister Benjamin Netanyahu, for example, stressed over the weekend that more Israeli reservists will be deployed to the north as operations in Gaza wind down. To Hezbollah, the Biden administration is making it plain that, while the U.S.-Israel relationship is tight, it can’t control Israel. It’s a stark departure from where much of the international community stands. On June 21, U.N. Secretary General António Guterres told the U.N. Security Council, “The people of the region and the people of the world cannot afford Lebanon to become another Gaza.” Days later, Defense Secretary Lloyd Austin reiterated to reporters at the Pentagon, “Another war between Israel and Hezbollah could easily become a regional war with terrible consequences for the Middle East.” Ditto German Foreign Minister Annalena Baerbock, whose own rhetoric during a recent trip to Israel and Lebanon was nearly identical to America’s top defense official: “Another war would mean a regional escalation on a scale we can hardly imagine.” Washington, for its part, has tried to prevent war in Lebanon by catering its messages depending on the audience. To Hezbollah, the Biden administration is making it plain that, while the U.S.-Israel relationship is tight, it can’t control Israel and it would therefore be wise for the U.S.-designated terrorist group to start cooperating on a diplomatic way out. Meanwhile, the U.S. continues to stress to Israel that, although it opposes a war, Washington will have Israel’s back come hell or high water. President Joe Biden, though, needs to start getting real with Israel. Right now the administration is trying to have it both ways by stressing just how awful an Israel-Hezbollah war would be while echoing that the U.S.'s support is automatic regardless of what Israel decides to do. This is likely to embolden, not discourage, Netanyahu. And it’s a dangerous approach. What the U.S. should be doing instead is making it known to Israeli officials, both publicly and privately, that the U.S. doesn’t support a war in Lebanon and won’t bail it out if it initiates one. Israeli firefighters respond to the fire that broke out after Hezbollah carried out an attack on Safed city, northern Israel on June 12. Mostafa Alkharouf / Anadolu via Getty Imagesfile Yet just because something is a terrible idea doesn’t necessarily mean it will be avoided. Israel and Hezbollah, two archenemies that have engaged in multiple armed confrontations over the last four decades, are in essence already in a war. Ever since Oct. 8, a day after Hamas’ deadly assault into southern Israel, the IDF and Hezbollah have turned the Israeli-Lebanese border region into their own personal firing range. Hezbollah has launched more than 5,000 anti-tank rockets, drones and missiles against various Israeli targets in the north of the country. Israel, in turn, has conducted airstrikes against Hezbollah positions nearly every day, killing high-ranking field commanders in the process. Nearly 350 Hezbollah fighters have been killed to date, a toll that surpasses the group’s casualty numbers during the 2006 Second Lebanon War. At the time of writing, Israel has registered a total of 25 deaths, 15 military and 10 civilian, on that front. For most of the last eight months, the violence has been relatively contained to within approximately 3.5 miles of the U.N.-demarcated Blue Line, the unofficial boundary between Israel and Lebanon. The fact that tens of thousands of people on both sides of the border were evacuated allowed to keep civilian casualties to a minimum. Yet Israel and Hezbollah’s rhetoric, in addition to deeper Israeli airstrikes into Lebanon and Hezbollah’s use of more sophisticated weapons like precision-guided munitions and drones —one of which injured 18 Israeli troops this weekend — are a bad omen for averting an escalation that the Biden administration is working desperately to prevent. A lingering internal displacement crisis is embarrassing for Netanyahu, whose entire career is premised on claims that he is the one man who can assure Israel’s security. Despite Gantz’s aggressive language, there is some truth to it. Outside of the United States military, the IDF is still the region’s most powerful military force. If Israel can turn Gaza into a wasteland of rubber and rebar, it can certainly do the same thing in Lebanon. This isn’t supposition but fact; Israel has invaded or bombed Lebanon so many times over the preceding decades (1978, 1982, 1993, 1996 and 2006) that it’s difficult to keep track. The 1982 invasion, which aimed to disband Yasser Arafat’s Palestine Liberation Organization for good, was especially deadly for the country, caused considerable friction with the United States and resulted in a nearly two decade-long occupation that created the very terrorist organization — Hezbollah — Israel is now seeking to deter. The 2006 Israel-Hezbollah war was deadly as well. Approximately 1,200 Lebanese lost their lives, as did 158 Israelis (the vast majority of whom were soldiers. Much of Lebanon’s public infrastructure, including the Beirut International Airport, was bombed. Even so, a new war with Hezbollah would make the 2006 conflict look tame in comparison. The 2006 war was a tactical success but a strategical failure for Israel, as it destroyed a decent chunk of Hezbollah’s offensive military capabilities but jeopardized Israel’s international reputation. The Lebanese militia was bloodied but not destroyed. The Hezbollah of 2024 is larger, better armed, more experienced and more politically powerful today than the Hezbollah of 2006. The group continues to boast its insurgent roots but increasingly resembles an army, possessing as many as 200,000 rockets and missiles of various ranges. Some of those missiles can reach any point in Israel, which means that, in the event of a war, Israel’s critical civilian infrastructure — airports, ports, electrical networks and power plants — could be targeted. Millions of Israelis would be living in bomb-shelters as the country’s major cities, from Tel Aviv to Haifa, are subjected to barrages that the Iron Dome anti-missile defense system would have a tough time neutralizing. Israeli ground forces, meanwhile, would be fighting against an organization that learned a great deal about military tactics, processes and procedures after years of ground operations in Syria, where Hezbollah proved crucial in saving Syrian dictator Bashar al-Assad from becoming the Syrian version of Muammar al-Qaddafi. In short, Israel would be acting against an adversary that is not only the Middle East’s strongest non-state actor but one that frankly fights more effectively than most of the region’s regular armies. A woman mourns during the funeral of a Hezbollah fighter on June 29 in Aita al Chaab, Lebanon. Chris McGrath / Getty Images The main motivation behind a hypothetical Israeli offensive is to allow its people to return to their homes. This is both a humanitarian and political imperative — humanitarian because Israelis, like people anywhere else, have the right to live in peace; political because a lingering internal displacement crisis is embarrassing for Netanyahu, whose entire career is premised on claims that he is the one man who can assure Israel’s security. Yet it’s hard to see how launching a full-scale war in Lebanon accomplishes this. Any war is going to produce tremendous materiel and physical damage, not only to the lives of ordinary civilians but also to the towns, small villages and kibbutzim that dot the Israeli side of the Israeli-Lebanese border. Israel’s economy in the north would be even worse off than it is today as more Israelis pull out of the area for their own safety. Israel has to think bigger. Any war with Hezbollah increases the risk of Iran or proxy militias in Syria, Iraq and Yemen escalating their own direct involvement. It’s important to note that Hezbollah is Iran’s most valued asset in the region, a group that is meant to not only tie Israel down but to deter Israel and the United States from taking military action against Iran itself. While Iranian intervention of some sort is not a guarantee, it’s certainly possible if Supreme Leader Ayatollah Ali Khamenei and the Islamic Revolutionary Guard Corps believe it’s necessary to preserve Hezbollah’s longevity. U.S. forces deployed in Iraq and Syria wouldn’t be out of the woods either; as demonstrated multiple times in the past, U.S. military outposts in both countries are opportunistic targets for Iran-backed militias who wish to send a message of disapproval about U.S. or Israeli policies. Although attacks against U.S. troops in Iraq and Syria have largely subsided since the Biden administration bombed dozens of militia and IRGC-linked targets in February — retaliation for a militia drone strike that killed three U.S. troops at a remote basis along the Syrian-Jordanian border — nothing is permanent in the Middle East. U.S. officials will have to be aware that, in any Israel-Hezbollah war, there’s a chance Americans wouldn’t be immune from the fallout. The Biden administration should keep this in mind and conduct itself wisely with Israel. The U.S. may not be able to control Israeli policy but it doesn’t have to be trapped by it, either.

July 4 travel hitting new record thanks to lower gas prices, humming economy 2024-07-03 17:45:00+00:00 - Travelers heading out for the July 4 holiday can expect plenty of company this year. Nearly 71 million people will be on the move over July 4th week, according to AAA — a new record that exceeds pre-pandemic totals. “With summer vacations in full swing and the flexibility of remote work, more Americans are taking extended trips around Independence Day,” said Paula Twidale, Senior Vice President of AAA Travel, in a statement. “We anticipate this July 4th week will be the busiest ever with an additional 5.7 million people traveling compared to 2019.” Some 60.6 million people will travel by car over the holiday, AAA said. That's up nearly 5% from last year. At $3.51 a gallon, gas prices are slightly lower than they were this time last year, when they hit $3.54. Given that inflation has climbed more than 3% over the period, the cost effect for drivers is even greater. Travelers in line for security screening at Hartsfield-Jackson Atlanta International Airport on June 28. Andrew Harnik / Getty Images Air travelers are also expected to set a new record, with AAA projecting 5.74 million people to fly to their July 4th destinations, up 7% from last year. AAA booking data shows domestic airfare is 2% cheaper this Independence Day week compared to 2023, and the average price for a domestic round trip ticket is $800. Travelers near check-in desks at Hartsfield-Jackson Atlanta International Airport on June 28. Andrew Harnik / Getty Images The booming travel figures are further reflected by the Transportation Security Administration screening data, which last week set a daily record of more than 2.9 million flyers processed. The U.S. economy is slowing but still showing signs of solid growth. The Commerce Department said last week that spending on travel, restaurant meals and other services rose at a 3.3% rate in the first quarter of the year, a still-firm rate that is occurring against decelerating inflation.

Hatch Baby recalls 919,000 power adapters on Rest 1st Generation sound machines over shock hazard 2024-07-03 17:31:00+00:00 - Hatch Baby is recalling 919,400 power adapters sold with Rest 1st Generation sound machines because they pose a shock hazard. In a notice posted on the Consumer Product Safety Commission's website, Hatch said it had received 19 reports of the plastic housing surrounding the AC power adapter coming off, leading to two reports of consumers experiencing a minor electrical shock. The product is sold by Hatch online in addition to other retailers like Amazon, Target, BuyBuyBaby, Pottery Barn Kids and Best Buy. Hatch said consumers should immediately stop using the recalled adapters and contact them for a free replacement. It said they should unplug and cut the cord on the recalled adapter, then submit a photo showing the model number and the cut cord at www.hatch.co/adapterrecall.

Ex-Post Office chair expresses ‘sincere regret’ over Horizon scandal 2024-07-03 17:14:00+00:00 - The former chair of the Post Office has expressed “sincere regret” for the state-owned body’s failings in the Horizon IT scandal and said it was a mistake not to show a key report on the problem to its board. Tim Parker, who was chair of the Post Office between 2015 and 2022, told a judge-led public inquiry that he felt “deep sympathy” for the Post Office operatives affected by what MPs have described as one of the biggest miscarriages of justice in UK history. The Post Office wrongly prosecuted hundreds of operators because of financial shortfalls recorded in their branches but it has since emerged that the Horizon IT computer system was unreliable and suffered bugs, errors and defects. Parker told the inquiry that there were “failures at all levels” of the Post Office over the way it defended the high court lawsuit brought against it by Sir Alan Bates and 554 other Post Office operatives, and it “may have relied too heavily on the advice of lawyers in the way the case was conducted”. Bates’ group gained a significant victory in 2019 when a judge ruled in its favour, finding issues with the IT system. Parker – a former private equity veteran whom unions once dubbed “the Prince of Darkness” because of his cost-cutting tactics – said that when he took over as chair the business was in “deep crisis”. He said it “absorbed billions of pounds of taxpayer money and was still losing money”. After he took over, he commissioned a report from barrister Jonathan Swift looking at the Post Office’s handling of complaints made by operatives about the Horizon system after government ministers raised concerns. Parker told the inquiry that, after Swift completed his report in January 2016, it was not given to the Post Office board because he had been told by Jane MacLeod, then the Post Office’s general counsel, that the Swift report was confidential and covered by legal privilege. “I felt erroneously that legal privilege meant that the report effectively was circumscribed,” he said. Ministers were also briefed on the report but were not given a hard copy amid fears the document could become publicly disclosable through freedom of information requests, the inquiry heard. The Department for Business, Energy and Industrial Strategy later wrote to Parker in October 2020 telling him it had been a “mistake” not to have shown the Swift report to the board. “At the time I was advised and I took that advice,” Parker told the inquiry, adding that, in 2016, he believed he was prevented from sharing the report with other board members. He accepted that if the Swift report had been discussed at board level it could have led to a “different approach” by the Post Office to the high court lawsuit. “Could we have shared it? I wish we had in a way,” he said. “What possible motive would I have at the time from hiding this report from my fellow board members other than receiving advice that I shouldn’t share it?… I had no vested interest in trying to protect the Post Office. It was simply the advice I received and I followed it.” skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion He added: “I would accept with hindsight [this] was a misjudgment. I am not a lawyer and I received very strong legal advice which I took … I did that in good faith. I had no reason to deliberately hide this thing or chuck it into the long grass.” He said the board had been briefed by former chief executive Paula Vennells about recommendations from the Swift report and the government “certainly knew of the report”. Parker is a high-profile figure in the business world and is the former chief executive of shoemaker Clarks, Kwik-Fit, the AA and luggage firm Samsonite, and a former chair of National Trust. The inquiry heard that, when Parker took over as chair in 2015, he was working a minimum of 1.5 days a week but by November 2017 he had asked for that to be reduced to two days a month. Parker told the hearing he would “certainly rebut” any suggestion that he had not spent enough time at the Post Office. “I would say I was an active, energetic chair who took a lot of time and spent time with people to understand the business,” he said. The inquiry continues.

AbbVie Stock: A Perfect Dip for Investors to Buy 2024-07-03 16:45:00+00:00 - In a holiday-shortened week, shares of AbbVie Inc. NYSE: ABBV are down a little more than 3%. To put that in context, the drop in ABBV stock was more than that of biotech stocks such as Johnson & Johnson NYSE: JNJ, which is down 0.68%, and Pfizer Inc. NYSE: PFE, which is down 1.38%. AbbVie Today ABBV AbbVie $163.84 -2.12 (-1.28%) 52-Week Range $132.70 ▼ $182.89 Dividend Yield 3.78% P/E Ratio 48.62 Price Target $179.64 Add to Watchlist However, both JNJ and PFE were already down for the year. By contrast, ABBV stock is up about 7%. That's well above the sector ETF, which is flat for the year and slightly outpacing the S&P 500, up about 4%. Get AbbVie alerts: Sign Up Without any obvious news, the question is, why? Shares of the iShares Biotechnology ETF NASDAQ: IBB have been down nearly 2% in the last five days, so this may be a case of some sector rotation. But with AbbVie getting ready to report earnings on July 25, it's a good time to check in on the stock and see what investors should be watching now. AbbVie Welcomes a New CEO Some will point to the change that was made in the C-suite. On July 1, Robert A. Michael assumed the role of chief executive officer. Michael succeeds Richard A. Gonzalez, who had held the role since 2013, when AbbVie spun off from Abbott Laboratories NYSE: ABT. However, this was a planned change, so that seems an unlikely reason for investors to waver on ABBV stock. Right now, this looks like a stock getting caught up in a slight sell-off in the overall biotech market. AbbVie Investors Shrug Off Humira Concerns Conventional wisdom suggests that AbbVie is having a prove-it moment. The company now faces generic equivalents to its blockbuster drug Humira in the United States and Europe. However, the company is optimistic that sales of drugs such as Skyrizi and Rinvoq will more than make up for any decline in revenue from Humira. The company also has Vraylar, a drug that has indications for major depressive and bipolar 1 disorders, which generated almost $700 million in the first quarter. Analysts are also bullish on Elahere, which is now part of the AbbVie portfolio after its $10 billion acquisition of ImmunoGen in 2023. That drug could top $2 billion in sales by 2030. That story will play out over several quarters. It hasn't had much impact on AbbVie stock, which is up 22.8% in the last 12 months. That's on par with the S&P 500 index and well ahead of the iShares Biotechnology ETF, which is up just 7% in that time. When you factor in the company's dividend, the total return for ABBV stock in the last 12 months is over 30%, which makes it one of the best medical stocks to own. AbbVie Inc. (ABBV) Price Chart for Wednesday, July, 3, 2024 Piper Sandler Just Confirmed its ABBV Price Target AbbVie MarketRank™ Stock Analysis Overall MarketRank™ 4.98 out of 5 Analyst Rating Moderate Buy Upside/Downside 10.7% Upside Short Interest Healthy Dividend Strength Strong Sustainability -2.34 News Sentiment 0.68 Insider Trading N/A Projected Earnings Growth 7.36% See Full Details If you're looking for another bullish confirmation, on July 3, analysts from Piper Sandler reiterated their Overweight rating on ABBV stock as well as the firm's price target of $190. That's about a 15% increase in the share price. Investors accustomed to the stock generating an average total return of over 35% in the last five years may believe the stock is looking overbought with the addition of more debt on its balance sheet. That may keep traders at bay, but with the stock trading at just 14.8x forward earnings and a dividend that has grown for 52 consecutive years, ABBV stock still looks like a solid stock for value-oriented investors. Before you consider AbbVie, 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 AbbVie wasn't on the list. While AbbVie currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Love Island ‘finfluencers’ deny part in unauthorised Instagram trading scheme 2024-07-03 16:45:00+00:00 - Three former Love Island stars who became social media “finfluencers” have pleaded not guilty to plugging an unauthorised investment scheme. Biggs Chris, 32, Jamie Clayton, 32 and Rebecca Gormley, 26, pushed the unsanctioned venture to their Instagram followers, it is alleged. The trio appeared side by side in the dock at Westminster magistrates court on Wednesday. The Financial Conduct Authority (FCA) charged nine influencers, including former stars of Geordie Shore and The Only Way Is Essex (Towie), with promoting the scheme which was run by 30-year-old Emmanuel Nwanze. Nwanze, alongside Holly Thompson, 34, used the Instagram account, holly-fx trends, to advise on buying and selling contracts for difference (CFDs) when they were not authorised to do so between 2018 and 2021, it is alleged. The watchdog said CFDs were high-risk investments, with 80% of customers losing money. Nwanze paid Chris, Clayton, and Gormley to promote the account to their followers in 2020, prosecutors say. He also paid Towie’s Lauren Goodger, 37, and Yazmin Oukhellou, 30, Love Island’s Eva Zapico, 25, and Geordie Shore’s Scott Timlin, 36, the FCA said. The combined following of their Instagram accounts was 4.5 million, the FCA said. A finfluencer is a social media influencer who gives advice on financial investments. Nwanze, Timlin and Thompson pleaded not guilty at a previous hearing. Each of the defendants is charged with one count of issuing unauthorised communications of financial promotions. They face up to two years in prison if convicted. Kerry Spence, partner at Hodge Jones & Allen who represents Gormley and Chris, said: “My clients strongly protest their innocence and look forward to clearing their names in court of these spurious charges.” Nwanze also faces one count of breaching a general prohibition under the Financial Services and Markets Act 2000, which prohibits people from carrying out regulated activities in the UK unless they are authorised to do so. A trial preparation hearing has been set for 11 July at Southwarkcrown court and the nine defendants have been granted unconditional bail until this date. Anyone who believes they have suffered loss over the scheme should contact the FCA, the regulator said.

Weight-loss jabs may be linked to condition that can cause blindness, study finds 2024-07-03 16:36:00+00:00 - People who have been prescribed a weight-loss injection could be at a higher risk of developing an eye condition which can lead to blindness, a study has found. The study found that people with diabetes who were prescribed semaglutide, most commonly known under the brand names Wegovy and Ozempic, were more than four times more likely to be diagnosed with an eye condition known as non-arteritic anterior ischemic optic neuropathy (naion). Naion is a disorder in which the arteries which supply blood to the optic nerve in the eye become blocked. The condition can lead to loss of eyesight due to the optic nerve being deprived of oxygen and subsequently damaged. There is no known treatment for the condition, which affects 10 out of 100,000 people in the general population. The research, published in the journal JAMA Ophthalmology and conducted by researchers at Harvard University, looked at data from 16,827 patients at the Mass Eye and Ear Harvard teaching hospital, who received treatment over a six-year period. Of the patients included within the study, 710 had type 2 diabetes, with 194 of those patients having been prescribed semaglutide. Included in the study were 975 patients who were overweight or living with obesity, with 361 of these having been prescribed semaglutide. Of the people included in the study with type 2 diabetes, 17 naion events occurred in patients who were prescribed semaglutide, compared with six who were on other diabetes drugs. Over three years, 8.9% of these people on semaglutide had naion compared with 1.8% on the other drugs, the researchers found. The study also found that people who were overweight or living with obesity who were prescribed semaglutide were more than seven times more likely to develop the condition than those on other types of weight-loss medicine. Of the people included in the study who were overweight or obese, 20 naion events occurred in people prescribed semaglutide, compared with just three events in people using other drugs. Over three years, 6.7% of these people on semaglutide had naion compared with 0.8% who were taking other weight-loss drugs. Prof Joseph Rizzo, a professor of ophthalmology at Harvard medical school, said: “Our findings should be viewed as being significant but tentative, as future studies are needed to examine these questions in a much larger and more diverse population. “This is information we did not have before and it should be included in discussions between patients and their doctors, especially if patients have other known optic nerve problems like glaucoma or if there is pre-existing significant visual loss from other causes.” Graham McGeown, honorary professor of physiology at Queen’s University Belfast, said: “This research does suggest an association between semaglutide treatment and one form of sight-threatening optic neuropathy, but this would ideally be tested in larger studies. “Given the rapid increase in semaglutide use and its possible licensing for a range of problems other than obesity and type 2 diabetes, this issue deserves further study, but possible drug side-effects always need to be balanced against likely benefits.” Semaglutide under the brand name Wegovy has been prescribed for weight loss on the NHS since 2023. A spokesperson for Novo Nordisk, the maker of Ozempic and Wegovy, said: “Patient safety is a top priority for Novo Nordisk and we take all reports about adverse events from use of our medicines very seriously. “Non-arteritic anterior ischemic optic neuropathy is not listed as a known adverse drug reaction in the summary of product characteristics (SmPC) for the marketed formulations of semaglutide (Ozempic and Rybelsus for type 2 diabetes and Wegovy for weight management) as per the approved labels.”

United Airlines texts customers live radar maps during weather delays 2024-07-03 16:19:00+00:00 - United said it will now text customers live radar maps when delays occur due to weather events, to keep them apprised of factors affecting their flight's status. The airline wants to keep customers in the loop in the event of delays and provide them with as much information as it can, perhaps to temper passenger frustration when their travel plans are interrupted due to circumstances out of the company's control. "United's latest innovation — real-time radar maps — can help customers understand how inclement weather in one part of the country can impact a flight elsewhere," United said in a statement announcing the effort. The company is using generative AI tools to power these and other messages to customers. Previously, United personnel generated flight-related messages sent to customers, announcing things like gate changes or new departure times. The new effort comes just ahead of the busy July 4 holiday travel period, with airports preparing for record-setting numbers of passengers. About 5.74 million people are expected to take to the skies to celebrate Independence Day, up almost 7% from the same period last year, according to AAA. "With more people traveling this summer than ever, we wanted to give our customers an easier way to stay connected to real-time information about their flight — and texting was the simplest solution," United's Chief Information Officer Jason Birnbaum said in a statement Wednesday. "We know customers appreciate transparency — and by combining innovative, technology-enabled tools with people-power, we can give more people even more in-the-moment details about their flight." Airline customer service and flight operations team members will assist the AI in generating a customer update "that tells the complete story of a flight change." During weather-related disruptions, updates will include links to real-time, local radar maps that help illustrate "how weather in one part of the country can impact a flight elsewhere," United said. United has long leveraged technology to communicate with customers, including by providing automatic rebooking assistance so passengers don't have to stand in a line to talk to an agent in person, and by sending customers real-time flight updates.

Forget NVIDIA: Super Micro Computer Stock Leads in Momentum 2024-07-03 16:00:00+00:00 - That's right, the better stock to watch for those investors who value momentum over everything else in the technology sector is not actually NVIDIA Co. NASDAQ: NVDA. Understanding that the artificial intelligence wave is only getting started, especially considering that chip and semiconductor technology will only advance according to Moore's law. But, if it's not NVIDIA, where can investors look to beat the momentum in the technology hype intoxicating markets today? Super Micro Computer Today SMCI Super Micro Computer $847.00 +9.83 (+1.17%) 52-Week Range $226.59 ▼ $1,229.00 P/E Ratio 47.48 Price Target $954.38 Add to Watchlist The half of the trading year is over, and performance is set in the books regarding percentage points. Over the past six months, NVIDIA stock delivered a stratospheric rise of 155% to surpass the $3 trillion valuation for the first time, placing it next to the likes of Microsoft Co. NASDAQ: MSFT and Alphabet Inc. NASDAQ: GOOGL. However, one stock beat NVIDIA with a 188% six-month performance. Get NetApp alerts: Sign Up That stock is Super Micro Computer Inc. NASDAQ: SMCI. Wall Street forecasts that the next few quarters could continue delivering a performance that leaves NVIDIA stock in the dark. This stock's still-in-the-darkness compared to NVIDIA is a good thing; it means that new investors will benefit from the pre-herd behavior of a stock, which happens when everyone stampedes into the same company. Super Micro Computer Stock: Leading Industry Growth One of the main drivers for stock prices is the earnings per share (EPS) growth that Wall Street forecasts for the next 12 months. Depending on that growth rate, markets will have a set multiple they would be willing to pay for that stock. The more growth, of course, the higher the multiple. So, how is Super Micro Computer doing against competitors in this sense? Wall Street analysts forecast up to 43.6% EPS growth for the next 12 months. This compares to NVIDIA's EPS forecasted growth of only 25.3%, and investors can also take peer NetApp Inc. NASDAQ: NTAP as a sounding board against Super Micro Computer. Super Micro Computer MarketRank™ Stock Analysis Overall MarketRank™ 4.86 out of 5 Analyst Rating Moderate Buy Upside/Downside 12.7% Upside Short Interest Bearish Dividend Strength N/A Sustainability -1.86 News Sentiment 1.04 Insider Trading Selling Shares Projected Earnings Growth 43.63% See Full Details NetApp is forecasted to grow its EPS by 8.9% this year. Now that investors know Super Micro Computer is leading EPS growth, it should trade at the highest valuation metrics. That's not quite the case; this is where investors can get an advantage. Super Micro Computer stock trades at 24.1x forward P/E. In contrast, NVIDIA trades at a much more expensive 36.2x forward P/E valuation, allowing investors to benefit from the ensuing rotation into a more realistic reflection of future growth. How big can this gap be? Taking price action into account, investors already know that Super Micro Computer has outperformed NVIDIA over the past six months, but here's what that looks like over a year. NVIDIA stock trades at 87% of its 52-week high, while Super Micro Computer stock sits at only 67% of its 52-week high. Elon Musk Backs Super Micro Computer Instead of NVIDIA When Elon Musk, the man behind the market's leading artificial intelligence trends, picks a company to back his hardware needs to make innovation happen, investors should consider their own investment considerations. Out of all the options in the market, Elon chose Super Micro Computer as his hardware supplier for his next artificial intelligence venture. If successful, this could spill over into providing hardware for Tesla Inc. NASDAQ: TSLA and even SpaceX. Of course, this possibility is not baked into today's EPS projections. However, some analysts were not shy about letting markets know where they think the stock could be valued in a few quarters. Those at Loop Capital think the stock could be worth up to $1,500 a share, daring it to rally by as much as 80.3% from where it trades today. Other analysts followed suit on this trend. Rosenblatt Securities slapped a $1,300 share valuation for Super Micro Computer stock, which may not be as bullish as Loop Capital. However, it still offers investors a 56.3% potential upside today. Super Micro Computer's Financials Validate Wall Street's Confidence Management was proud to report a 200% increase in revenue over the year, which was well above peers, according to the company’s third quarter 2024 earnings press release. Of course, that revenue growth led the company’s EPS to skyrocket. EP was only $1.61 in the same quarter in 2023, but that metric jumped to $7.13 a year later to show investors where the industry’s growth really is. Based on this financial momentum, management also felt comfortable projecting financials higher for the rest of the year according to guidance, giving analysts and Wall Street another point of reference to lean on. In light of this evidence, the Vanguard Group (the stock’s largest shareholder) boosted its stake in the company by 25.7%, bringing its net investment up to $6.3 billion today. Super Micro Computer, Inc. (SMCI) Price Chart for Wednesday, July, 3, 2024 Before you consider NetApp, 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 NetApp wasn't on the list. While NetApp currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

GitLab Stock Rebounds: The Inside Story of Its Comeback 2024-07-03 15:50:00+00:00 - GitLab Today GTLB GitLab $53.17 +1.42 (+2.74%) 52-Week Range $40.19 ▼ $78.53 Price Target $67.30 Add to Watchlist The market for GitLab NASDAQ: GTLB collapsed in late May when it announced high-severity flaws in its platform. The news was especially shocking coming from a DevSecOps platform, but the impact on the share price has been short-lived. The market is already rebounding from its lows and is likely to head higher because GitLab is a leader in secure developer operations. The truth is that no platform is entirely safe; cybersecurity is more about deterrence, the difficulty hackers face, than actual prevention, and GitLab has already issued its patches. The takeaways from the Q1 report are that enterprise-level clients continue flocking to the platform, outperformance is expected for Q2, and the growth outlook is robust. Get GitLab alerts: Sign Up GitLab is Building Momentum With AI GitLab had a solid quarter with revenue, earnings, and guidance above consensus forecasts reported by MarketBeat.com. The company’s revenue performance was driven by growth in clients led by large clients producing more than $100,000 in annual revenue. Large clients grew by 35%, and services' deepening penetration compounds the strength. The net retention rate or measure of the revenue generated from existing customers was 125% of last year’s level, giving evidence of the platform's utility. The guidance is also solid and potentially cautious, given the trend of outperformance, client growth, penetration of services, and remaining performance obligations. RPO is a measure of contracted business that has yet to be recognized, up 48%. Regardless, the guidance calls for another quarter of nearly 30% growth; the only downside is that growth will slow from Q1’s 33% to an average of almost 28% for the year. Looking forward, analysts expect the company to sustain growth in the mid-20% in 2025, and that outlook may also be light. GitLab MarketRank™ Stock Analysis Overall MarketRank™ 3.49 out of 5 Analyst Rating Moderate Buy Upside/Downside 26.6% Upside Short Interest Healthy Dividend Strength N/A Sustainability N/A News Sentiment 0.36 Insider Trading Selling Shares Projected Earnings Growth Decreasing See Full Details Analysts lowered their targets for the stock following the Q1 release and are setting the market up for a rebound. The analysts will likely start raising targets in the second half because the Q2 results will be strong, and further guidance improvement is also expected. As it is, the 25 analysts tracked by MarketBeat show a high conviction for this enterprise tech stock and rate it as a Moderate Buy. The consensus is down compared to last quarter, but marginally, and is still nearly 30% above the current action, providing ample incentive to the market, and the low target is also significant. Several firms issued a low target of $50, the lowest target on record, a floor for the price action in this tech stock. Insiders Sell GitLab Shares; Institutions Buy Them Insiders have been selling GitLab, but there are so many offsetting factors that it doesn’t matter. To start, insider activity is light, the pace of selling has slowed sequentially for three quarters, and activity is spread among numerous execs, pointing to sales related to share-based compensation. Another offsetting factor is the institutional interest. The institutions have bought this stock on balance for five consecutive quarters, and the selling virtually dried up in Q2. Over the past twelve months, the activity has total institutional ownership up to 92% and is growing, providing a strong tailwind for the market. GitLab Rebounds, Reversal in Play Shares of GitLab are moving higher, confirming support at the $44 level. The price action has moved above the analysts' low $50 target, which should act as market support now. The next hurdle is the long-term moving average near $54. That level will likely be reached soon. The question is if the market will move above it quickly or enter a correction. In either case, this stock is a good buy and will likely move above $60 by the year’s end. Before you consider GitLab, 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 GitLab wasn't on the list. While GitLab currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Figma’s AI app creator accused of ripping off Apple weather app 2024-07-03 15:27:00+00:00 - The technology design company Figma has pulled an AI-powered app creator, after accusations that the tool was ripping off Apple’s weather app. The chief executive of the company, which was the target of a $20bn takeover attempt by Adobe until EU and UK regulators opposed it, defended the tool against accusations of plagiarism on social media, but accepted that the company had “missed the mark” due to an issue “related to the underlying design systems”. Known as Make Designs, the AI tool launched by Figma allows users to enter a plain English description of an app they want to create, and watch as the user interface is generated out of thin air. But shortly after it launched, Andy Allen, the founder of the iOS app developer Not Boring Software, discovered that multiple requests to design a weather app repeatedly resulted in a program that was almost identical to the built-in iOS weather app that appears on Apple devices. “This is a ‘weather app’ using the new Make Designs feature and the results are basically Apple’s Weather app,” Allen said in a post on X this week. “Tried three times, same results.” Figma AI looks rather heavily trained on existing apps. This is a "weather app" using the new Make Designs feature and the results are basically Apple's Weather app (left). Tried three times, same results. https://t.co/Ij20OpPCer pic.twitter.com/psFTV6daVD — Andy Allen (@asallen) July 1, 2024 On Tuesday, Figma’s chief executive, Dylan Field, posted a defence of the company’s feature. Despite appearances, Field said, the tool was not created by training an AI system on work done using the Figma app by other customers. “The Make Design feature is not trained on Figma content, community files or app designs,” he said, calling claims that the service was trained on existing apps “false”. Instead, the service used “off the shelf” large language models to instruct a more hand-coded “design system”, he said. Rather than designing the app from scratch, in other words, the AI system simply built an app using an algorithmic toolkit put together by Figma’s own designers. But that approach meant that “variability is too low”, Field accepted. “Within hours of seeing this tweet, we identified the issue, which was related to the underlying design systems that were created. Ultimately, it is my fault for not insisting on a better [quality assurance] process for this work and pushing our team hard to hit a deadline for [Figma’s annual conference] Config. “I hate missing the mark, especially on something that I believe is so fundamentally important to the future of design,” Field added. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Adobe made a $20bn (£15.6bn) takeover bid for Figma in 2022 as its collaboration-focused suite of design tools began to represent a viable competitor to Adobe’s market-leading Creative Suite. But in 2023, the attempted merger was called off, with regulators in the EU and UK effectively blocking it for fear it would eliminate competition in the “product design software market”. “There is no clear path to receive necessary regulatory approvals from the European Commission and the UK Competition and Markets Authority,” the companies said in the joint statement in December. Adobe paid a $1bn termination fee to Figma after the collapse of the deal. Figma has been contacted for comment.

FDA bans ingredient found in some citrus-flavored sodas 2024-07-03 15:07:00+00:00 - New studies have bad news about soda New studies have bad news about soda 01:06 Food and beverage makers will no longer be allowed to use brominated vegetable oil as an ingredient in their products, the U.S. Food and Drug Administration said Tuesday. Modified with the chemical bromine and used to keep flavoring from floating to the top of citrus drinks, brominated vegetable oil (BVO) in food is no longer considered safe, the regulatory agency said in a statement. The rule takes effect on Aug. 2, 2024, with manufacturers given another year to reformulate, relabel and deplete their inventories of BVO-containing products before the agency starts enforcing its ban, the FDA said. People should continue checking the ingredients listed on products to "avoid BVO, as some older stock may still be in circulation," the Center for Science in the Public Interest said in a statement declaring the national ban to be long overdue but necessary. The substance that helps blend liquids is used in about 70 sodas and beverages, most of them vibrantly colored and citrus-flavored, according to Consumer Reports, citing a database maintained by the Environmental Working Group (EWG). The FDA announced its ban eight months after the agency proposed it, citing studies on animals that showed the ingredient may have adverse health effects in humans. The FDA determined in 1970 that BVO was not generally recognized as safe, with many beverage makers in the ensuing decades swapping out the ingredient with alternatives. As things stand, few beverages in the U.S. today contain BVO, according to the agency. A spokesperson for Keurig Dr Pepper told CBS MoneyWatch in November that the beverage maker was reformulating its Sun Drop soda to no longer include the ingredient. "Toxic additives like BVO that have been shown to pose toxic risks to the thyroid and other chronic health problems should not be allowed in our food," Brian Ronholm, director of food policy at Consumer Reports said in a statement. "We're encouraged that the FDA has re-examined recent studies documenting the health risks posed by BVO and is taking action to prohibit its use." Already banned for use in food in most European countries, BVO was among four food additives banned by California in October.

How Reliant Is the U.S. on Avocados From Mexico? 2024-07-03 15:04:20+00:00 - Americans have a growing appetite for avocados, and a single state in Mexico supplies nearly all of the fruit eaten in the United States. This reliance is highlighted when imports are disrupted. The U.S. Department of Agriculture recently suspended inspections of avocados and mangoes set to be shipped from Mexico, citing security issues for agency workers stationed in Michoacán, a state in western Mexico where criminal groups have sought to infiltrate the thriving avocado industry. The U.S. ambassador to Mexico said in late June that inspections would “gradually” resume, and visited Michoacán last week to meet with state and federal authorities. Here’s what to know about the avocado trade between the United States and Mexico. Where does the U.S. get its avocados from? The average American consumes more than eight pounds of avocados per year, roughly triple the amount in the early 2000s, according to the U.S.D.A.

As Biden team suggests there can be no alternative, DNC rules provide a path if Biden were to step aside 2024-07-03 15:02:00+00:00 - WASHINGTON — As President Joe Biden’s campaign tries to calm nervous Democrats, the Democratic National Committee is circulating talking points that misleadingly suggest, according to some sources, there is no procedural means of replacing the president at the top of the party’s ticket — without sharing the path ahead if he were to step aside. "Joe Biden will be the Democratic Party's nominee for president," the talking points read, according to a copy provided by a source who received them. "Any other discussion is a distraction and 'brokered' conventions are a thing of the past." They go on to say that "the only person eligible for nomination is Joe Biden." Biden has been firm in saying that he will stay in the race, and the "DNC Talking Points for Convention Nomination Rules" that are being circulated within the party are mostly accurate — up until the party's August convention ends. But as the party’s rules stand now, according to three people who are familiar with them and the DNC’s 2022 document outlining procedures for the convention, there is a process for replacing Biden if he voluntarily chooses to step aside after the Aug. 22 conclusion of the convention. Under the existing rule, Democratic National Committee Chair Jamie Harrison would name a new nominee, in consultation with Senate Majority Leader Chuck Schumer, D-N.Y., House Minority Leader Hakeem Jeffries, D-N.Y., and Democratic Governors Association Chair Tim Walz of Minnesota. Their choice would be presented to DNC members — a group of party leaders much smaller and more elite than the delegates to the convention — for ratification or rejection. His nomination is expected to occur before that, in a virtual roll call of state delegations in late July or early August. A date for that is expected to be set by the convention's rules committee at a July 19 meeting. The Biden campaign wants everyone to think “chaos would reign” if the president stepped aside, said one person familiar with the DNC process. “Thats why they’re not admitting there’s a rule.” A Democratic staffer in a battleground state called the talking points "beyond f----ed up." "This is what MAGA Republicans do, not us. DNC needs to get a grip," the person said. “The primary is over, and in every state the will of Democratic voters was clear: Joe Biden will be the Democratic Party’s nominee for President. Delegates are pledged to reflect voters’ sentiment, and over 99% of delegates are already pledged to Joe Biden headed into our convention," Harrison said in a statement. The Biden campaign did not immediately return a request for comment. Democrats have been agonizing over Biden's fitness for the top of their ticket since his blundering debate performance Thursday, when he repeatedly struggled to make cogent arguments and often looked lost. A handful of them have called on Biden to step aside in order to preserve or improve their chances of defeating former President Donald Trump and win majorities in the House and Senate. Based on Federal Election Commission rules governing how money can be transferred if there is a substitute candidate, Democratic National Committee rules and the political optics of a fight that would imperil support from Black voters and women, most Democratic insiders say it is hard to see how anyone other than Vice President Kamala Harris would end up as the nominee if it is not Biden. Before the convention, several thousand elected convention delegates — almost all of whom are pledged to Biden — have the power to choose the party's nominee. "Because there was no primary opponent, the overwhelming majority of the elected delegates are Biden delegates ... so on the first ballot he would be the nominee," said one DNC member. But, this member said, that would change if Biden left the nomination vacant after receiving it. "In the case of that historic moment, the members of the DNC will choose the nominee for the party," the DNC member said. It is also still possible for the convention delegates to change the rules at the convention, which occurs after the nomination by a virtual roll call. “It all could make for a more orderly convention,” if Biden is nominated through the virtual roll call then releases his delegates before the actual convention and Harrison employs the rule. But there is also a chance of it backfiring with some members of the party, who felt there should be an open convention. “You could argue you don’t want a coordination at this point either because that could backfire at some point," the source said. Campaign-finance law experts say that it is likely that Biden's campaign war chest could be transferred to Harris because she is his running mate and appears as such on filings with the FEC. But any other candidate would likely have to raise new money for his or her campaign. There are other complications for any scenario that didn't include Biden as the nominee: 50 state laws govern the printing of ballots, and it might be difficult to get a new candidate on some of those ballots. And yet, the Biden campaign and its allies are concerned enough about discord within the party that they are actively asserting that Biden is the only candidate who could carry the party's standard in November. At the same time, some prominent Democrats have emphasized both names on the ticket — Biden and Harris — in recent interviews and opened the door to the idea that the vice president could be the party's presidential candidate. “I’m a Biden-Harris person, so I’m not getting away from that," Rep. Jim Clyburn, D-S.C., whose endorsement helped fuel Biden's support among Black voters in the 2020 primary, said after the debate. "I’m for Biden-Harris. I’m going to be for Biden if Harris ain’t there and I’m going to be for Harris if Biden ain’t there."

Fourth of July holiday will scorch with triple digit temps, over 100 million people under heat alerts 2024-07-03 15:01:00+00:00 - Heat warnings and watches are in place for 110 million people across 21 states for the holiday period, with dangerous and potentially historic extreme heat due for the West in the coming days and temperatures of 115 degrees possible. The National Weather Service office in San Francisco warned yesterday that this heat event could last 6 to 12 days, making it the longest stretch of extreme temperatures the Bay Area has seen in at least 18 years. Several daily heat records were broken Tuesday and more than 130 could be set through next Tuesday. The weather service warned that "an exceptionally dangerous situation is underway as we enter a potentially historic and deadly heat event." The office added that heat is the number one weather-related cause of death in the U.S. and "it is VERY LIKELY that we add to that statistic if preparations are not taken seriously." Excessive heat warnings are in place for much of California, southern Nevada, and parts of Arizona, Washington and Oregon. An excessive heat warning means potentially life-threatening conditions, "with a high to very high risk for much of the population due to long duration heat with little to no overnight relief." The weather service said that temperatures had already reached 77 degrees in the Bay Area, with 18% humidity, by 5 a.m. Wednesday. As for the holiday period, across the Plains and the Southeast, the heat index — which measures how hot it feels when humidity is taken into account — could reach between 100-115 on Wednesday. Little Rock, Arkansas, could see a heat index reading of 116 degrees, while Pheonix, Arizona, is set to reach 113 on the same scale. Excessive heat and humidity will stretch from Nashville to New Orleans on Wednesday and Thursday, but slightly cooler temperatures arrive by Friday. It’s already been a record-breaking year for temperatures. It's only early July, but Miami has spent more time in or above 105 degrees on the heat index than in the entirety of 2019. The extreme heat brings with it an increased risk of wildfires. Some 4 million people, mostly in California, are under Red Flag warnings. The warnings urge people to be careful with open flames — an added risk with holiday firework displays taking place. There is also the chance for stormy weather across the central U.S. to disrupt some holiday gatherings. Some 13 million people are under risk of severe storms across the western High Plains and the Ohio River Valley. High wind is likely across both areas, along with hail and isolated tornadoes for the region. For Thursday, 6 million people are under a slight risk of severe storms across much of Missouri and parts of Kansas and Oklahoma. A secondary area of storms that may light up by afternoon could be Iowa, where a tornadoes are possible. The main threat will be damaging winds for cities like Kansas City, Missouri, and Topeka, Kansas. A low pressure front over the central High Plains and a frontal boundary stretching from the lower Great Lakes to the central Plains could be "the triggers for some meteorological fireworks," the NWS said. Flash flooding as a result of heavy rain is possible between eastern Kansas and the Ohio Valley.

Is Rivian Stock on the Verge of a 100% Rally? 2024-07-03 15:01:00+00:00 - Rivian Automotive Today RIVN Rivian Automotive $14.65 -0.24 (-1.61%) 52-Week Range $8.26 ▼ $28.06 Price Target $19.04 Add to Watchlist Despite sinking to an all-time low in April, shares of Rivian Automotive, Inc. NASDAQ: RIVN have been on a heater in recent weeks. The electric vehicle (EV) maker, considered one of the stronger alternatives to the king of EVs, Tesla Inc NASDAQ: TSLA, has seen its shares gain more than 80% in the past ten weeks. While they have a long way to go to get back to even last year's high, they're building up a head of steam and catching Wall Street's attention for all the right reasons. Get Rivian Automotive alerts: Sign Up Rivian's Fresh Upward Momentum The turnaround, which started in the back half of April, gained some serious momentum in May, aided by Rivian's Q1 results. While losses for the quarter were deeper than expected, revenue growth of more than 80 % YoY just couldn't be ignored, especially with the stock trading down 95% from 2021's all-time high. To put that into context, Rivian's most recent quarterly revenue figure was 24 times its final quarterly revenue print of 2021. While the EV industry, in general, is hurting from a dip in demand, those who believe in its long-term potential would do well to take note of Rivian's comparatively attractive valuation today. Beyond the strong revenue growth, last week's big announcement lit a fresh fire under the stock and sent it to its highest level since February. The news came out on Tuesday of last week that Rivian is forming a joint venture with Volkswagen "to create next-gen electrical architecture and best-in-class software technology." Rivian will bring its expertise in all things electrical. At the same time, Volkswagen will invest $1 billion in Rivian in return, setting the stage for what could be a very profitable partnership for both parties. Rivian's Partnership with Volkswagen: Driving Analyst Optimism Many heavyweight analysts were immediately bullish on the news, particularly Rivian stock. The team at Wedbush reiterated their Outperform rating on the stock while upping their price target to $20. In a note to clients, analyst Dan Ives wrote, "This is a core game changer for Rivian and changes the capital structure of the company looking ahead for the story and the Street's view at a key time.” Even with the rally continuing this week, his refreshed price target still points to a further upside of some 30%. Rivian Automotive MarketRank™ Stock Analysis Overall MarketRank™ 3.41 out of 5 Analyst Rating Moderate Buy Upside/Downside 30.0% Upside Short Interest Healthy Dividend Strength N/A Sustainability N/A News Sentiment 0.39 Insider Trading Selling Shares Projected Earnings Growth Growing See Full Details The Needham & Company team matched that $20 price target, with Piper Sandler going even higher with a $21 price target. This has already been topped this week, with Canaccord Genuity Group coming out on Monday with a buy rating on Rivian shares and a $30 price target, which points to almost 100% in targeted upside. The Canaccord team is particularly bullish on Rivian's prospects following the announcement of its partnership with Volkswagen and sees the stock as being incredibly undervalued at its current price. Rivian's bullish vehicle delivery numbers over the past few days no doubt helped as well, and it feels as if the company has really turned a corner. Rivian's Stock Outlook Ahead of August Earnings Rivian's next earnings report is in the first week of August, and expectations will be high for further confirmation of the stock's growth outlook. Investors should look for the stock to continue gaining in the coming weeks as investor confidence in the EV market returns and bargain prices are snapped up. This has already been seen with Tesla's stock, effectively a bellwether for the entire EV market. They've jumped more than 40% in the past three weeks, which should also make other beaten-down EV stocks, like Rivian, very appealing. Rivian Automotive, Inc. (RIVN) Price Chart for Wednesday, July, 3, 2024 Before you consider Rivian Automotive, 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 Rivian Automotive wasn't on the list. While Rivian Automotive currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

EU plan to impose import duty on cheap goods could dent Shein and Temu 2024-07-03 14:26:00+00:00 - The EU is moving forward with plans to impose customs duty on cheap goods in a shift that could hit imports from online retailers and harm a hoped-for London listing by the fast-fashion seller Shein. The potential change comes amid growing disquiet among retailers based in mainland Europe, the UK and the US about rising competition from the Chinese-linked marketplaces Shein and Temu, which exploit a loophole that excludes low-value items from import duty. In the EU, the threshold for the levy is €150 (£127) and in the UK it is £135, enabling retailers such as Shein to ship products directly from overseas to shoppers in those markets without paying any import duty. In the UK, items valued at £39 or less also do not attract import VAT. Subsidised postage costs in China make it more cost-effective for businesses based there to send cheap goods by air. A European Commission spokesperson said: “In May last year we put on the table customs reforms for a simple, smarter and safer customs union. What we have proposed now is there is no exemption any more for packages valued at below €150.” The e-commerce proposal must first be discussed and accepted by the European parliament, which sits again later this month. Last year, 2.3bn items below the duty-free €150 threshold were imported into the EU, according to a report in the Financial Times that highlighted the potential change. Imports from online retailers have more than doubled year on year to more than 350,000 items in April. John Stevenson, an analyst at Peel Hunt, said that the impact of a change in the rules on Shein “would be huge depending on the territory”. View image in fullscreen The Shein logo and web shop. Photograph: Dado Ruvić/Reuters Some countries imposed import duties of up to 30%, he said, and having to pay that would force Shein to either completely change its business model, put up prices or take a hit on profit. “The whole model is based on not paying duty,” he said. “It would have a massive impact.” Stevenson was quite sceptical that EU countries would be able to close the loophole in the short term, given the complexity and cost of checking billions of parcels. However, he said the issue would be high on investors’ list of concerns alongside potential ethical issues in its supply chain if Shein went ahead with launching a London listing, as is expected as early as this autumn. Shein also faces increased competition from fellow social media-driven retailers including TikTok Shop and Temu, as well as the post-Covid return to the high street by shoppers, which has helped the likes of Primark. Research from Earnest Analytics found that Shein shoppers in the US allocated 43% of their online discount spending to the brand last month compared with 66% a year ago, just before TikTok transactions began. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Shein’s boss, Donald Tang, who is on a “fact-finding” mission in Europe, has said he is “pro reform” of the import duty threshold. He told Politico: “We want to have fair competition around the world” and said the tax break was “not foundational to our success”. Shein said in a statement that it was “fully compliant with UK tax policies and pays applicable taxes including corporation tax, VAT and employment taxes”. “Shein’s success comes from our ability to produce fashionable products for our customers. We keep prices affordable through our on-demand business model and flexible supply chain. “This reduces inefficiency, takes out wastage of material, and lowers our unsold inventory. We pass this advantage to our customers, and this has driven our growth.” UK retailers have called on the government to examine the loophole amid rising competition from Shein and Temu. On Tuesday, Simon Roberts, the boss of Sainsbury’s and Argos, called on a new government to look at unfair taxes including business rates and import duty. “I want to make sure that the loopholes that are currently in place are closed for some of the businesses that aren’t paying tax in the right way, so it’s a level playing field for everybody,” he said. Theo Paphitis, the owner of the UK retailers Ryman and Robert Dyas, and the Next boss, Simon Wolfson, have also called on the UK government to review the loophole.