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Supreme Court allows emergency abortions in Idaho for now 2024-06-27 14:25:00+00:00 - WASHINGTON — The Supreme Court on Thursday sidestepped a ruling on whether Idaho's strict abortion law conflicts with a federal law that requires stabilizing care for emergency room patients, including pregnant women suffering complications who may require abortions. The court dismissed an appeal brought by Idaho officials, meaning a lower court ruling that allows doctors in the state to perform abortions in emergency situations remains in effect for now. The decision, which leaves the legal question unresolved and has no impact in any other state, was widely expected after the Supreme Court on Wednesday inadvertently posted a copy online. Protesters outside the Supreme Court on May 3, 2022. Alex Brandon / AP file The court could take up the issue in a later case. Attorney General Merrick Garland said in a statement the Justice Department will continue to push its interpretation of the federal law in the ongoing litigation. "Today's order means that, while we continue to litigate our case, women in Idaho will once again have access to the emergency care guaranteed to them under federal law," he said. Justice Ketanji Brown Jackson, who objected to the court failing to decide the case, read her dissenting opinion from the bench, a step justices generally only take when they are particularly disgruntled with the outcome. "There is simply no good reason not to resolve this conflict now," she wrote. Conservative Justice Samuel Alito agreed on that point in a dissenting opinion joined by Justice Clarence Thomas and, mostly, Justice Neil Gorsuch. Alito indicated he would rule against the Biden administration, which argues that federal law requires abortions when a woman is suffering from various health complications that are not necessarily immediately life-threatening, notwithstanding Idaho's strict ban. "Here, no one who has any respect for statutory language can plausibly say that the government's interpretation is unambiguously correct," he wrote. A five-justice bloc of conservative and liberal justices, however, voted against deciding the case. Conservative Justice Amy Coney Barrett wrote that the "shape of these cases has substantially shifted" since the court agreed to hear the two linked appeals from the state and elected officials. Liberal Justice Elena Kagan said Idaho's arguments "have never justified ... our early consideration of this dispute." The legal question is of importance not just in Idaho, but also in other states that have enacted similar bans that abortion-rights advocates say clash with the federal law because they do not include broad exceptions for the health of the mother. But the court's failure to issue a ruling means confusion remains on whether the federal law trumps the state bans. In Idaho, the state's appeal of the lower court ruling will continue. The litigation could get even more complicated if former President Donald Trump wins the election, as his administration could change its legal position and argue that the federal law does not conflict with state abortion laws. The federal government said a handful of states would be affected if the court had issued a full ruling, while abortion opponents said a win for the Biden administration would potentially affect up to 22 states that have imposed abortion restrictions. The Idaho abortion ban was enacted in 2020, with a provision stating it would go into effect if the Supreme Court overturned Roe v. Wade, the 1973 ruling that found women had a constitutional right to terminate a pregnancy. The legislation, known as the Defense of Life Act, went into effect in 2022 when the Supreme Court rolled back Roe. Idaho’s law says anyone who performs an abortion is subject to criminal penalties, including up to five years in prison. Health care professionals found to have violated the law can lose their professional licenses. The federal government sued, leading a federal judge in August 2022 to block the state from enforcing provisions concerning medical care that is required under the federal Emergency Medical Treatment and Labor Act, or EMTALA. That 1986 law mandates that patients receive appropriate emergency room care. The Biden administration argued that care should include abortions in certain situations when a woman’s health is imperiled even if death is not imminent. The government and abortion rights groups cited as examples women whose water breaks early in a pregnancy, putting them at risk of sepsis or hemorrhage. The federal law applies to health care providers that receive federal funding under the Medicare program. The Idaho law includes an exception if an abortion is necessary to protect the life of the pregnant woman, although the scope of the exception was heavily contested in the litigation. The Supreme Court in January allowed Idaho to enforce the provisions while agreeing to hear oral arguments in the case. Other provisions of the ban are already in effect and are not affected by the court's latest decision. In blocking parts of the state law that conflict with federal law, U.S. District Court Judge B. Lynn Winmill described the state’s actions as putting doctors “on the horns of a dilemma.” The 9th U.S. Circuit Court of Appeals, based in San Francisco, briefly put Winmill’s ruling on hold in September, but it subsequently allowed it to go back into effect, prompting the state officials to turn to the Supreme Court. The emergency room dispute is one of two abortion cases the Supreme Court considered this term, both of which arose in the aftermath of the 2022 decision to overturn Roe. In the other, the court rejected a challenge by anti-abortion doctors to the Food and Drug Administration’s lifting of restrictions on mifepristone, the drug most commonly used for medication abortions.
Liberal Justice Sotomayor bemoans 'dismantling' of federal agency power as Supreme Court curbs SEC 2024-06-27 14:14:00+00:00 - WASHINGTON — Liberal Justice Sonia Sotomayor accused the Supreme Court's conservative majority of seizing power for itself as it curbs the authority of federal agencies in a series of rulings, including one Thursday that went against the Securities and Exchange Commission. She said in a dissenting opinion that the ruling, which limits the SEC's ability to enforce securities laws, was part of a "disconcerting trend" in which the court has pared back the power of regulators. She cited other recent decisions in which the court made it easier for presidents to fire the heads of independent agencies and limited the authority of in-house judges. "Make no mistake, today's decision is a power grab," Sotomayor wrote. She took the additional step of reading a summary of her dissent from the bench, something justices do when they are particularly upset with a decision. In Thursday's decision, the court ruled 6-3 that the adjudication of cases by the SEC's in-house judges violates the right to trial by jury. The ruling could also have implications for other agencies that use similar procedures. The case is one of several the court heard in its current term involving conservative and business-led attacks on the power of federal agencies. The court’s 6-3 conservative majority is often sympathetic to such arguments. Sotomayor referenced the ongoing assault on what has been dubbed "the administrative state" by critics. "Litigants seeking further dismantling of the 'administrative state' have reason to rejoice in their win today, but those us us who cherish the rule of law have nothing to celebrate," she wrote. The challenge zeroed in on how the SEC enforces securities laws, including those prohibiting insider trading. The SEC has long used in-house proceedings presided over by administrative law judges. The agency can also sue in federal court. In both sets of proceedings, it can seek financial penalties. Those subject to the in-house adjudication have complained, saying the process violates their rights and gives the SEC too much power by essentially creating a home-court advantage. In the majority opinion, Chief Justice John Roberts fired back at Sotomayor, saying that she "would permit Congress to concentrate the roles of prosecutor, judge, and jury in the hands of the executive branch." Such an outcome is "the very opposite" of what the Constitution's separation of powers principle requires, he added. Hedge fund manager George Jarkesy brought the legal challenge after he faced SEC claims that he violated securities laws by making misstatements and omitting relevant information in communications with investors while he was overseeing two hedge funds. Jarkesy and his firm were ordered to pay a $300,000 penalty, and he was barred from certain roles in the securities industry after being subjected to an in-house proceeding in 2014. The firm was also ordered to return nearly $685,000 in what the SEC considered “illicit gains.” Jarkesy’s legal crusade had the backing of billionaires Elon Musk and Mark Cuban. A three-judge panel of the New Orleans-based 5th Circuit U.S. Court of Appeals ruled against the agency, prompting the SEC to ask the Supreme Court to intervene.
3 Reasons Amazon Stock Is a Prime Buying Opportunity 2024-06-27 14:04:00+00:00 - A 4% pop yesterday put Amazon.com Inc NASDAQ: AMZN shares at a new record high and on the verge of a major milestone. After closing at $193.61, they're just a 3% move away from hitting $200 for the first time ever. It also means that they're now up more than 30% since the start of the year and over 130% since the beginning of last year, which is when this current rally really started. A combination of cooling inflation, rising hopes for interest rate cuts, and the explosion of artificial intelligence (AI) in recent months have made prime conditions for Amazon stock. Less inflation means the tech titan's e-commerce consumers have more disposable income to spend, while the possibility of a fall in rates means their tech customers are increasing their cloud computing budgets. The whole AI angle should speak for itself, but for now, it's safe to say that Amazon has emerged as one of the leading players and is staking a claim to a decent amount of market share. Get Amazon.com alerts: Sign Up For those of us on the sidelines, though, who've missed out on the multi-month run so far, there are reasons to still be excited. Those tailwinds mentioned above are still in play, and we're inclined to think that every day Amazon spends under $200 is a screaming buy opportunity. Here are three more reasons why. Amazon Stock's Impressive Fundamental Strength Amazon's next earnings report is due in the last week of July, and the stock is likely to rally up to that as investors get into position. The company's last report, which came out at the end of April, smashed analyst expectations across both headline numbers and sent the stock soaring. Excluding the holiday quarters, which Amazon always has the best, it was Amazon's highest quarterly revenue print ever and its most profitable. Considering the stock has only just recovered from the 50% hammering it took through 2022, it's in a great position. From a valuation perspective, a price-to-earnings (PE) ratio of just 54 compares favorably to where it was during 2022's crash. Sure, the macro-environment was different then, but Amazon at the time had a PE ratio of more than 100. Considering this has now been halved, while the stock has more than doubled simultaneously, you can't help but feel the valuation is quite attractive. Multiple Analysts Label Amazon With a Buy Rating Amazon.com MarketRank™ Stock Analysis Overall MarketRank™ 4.27 out of 5 Analyst Rating Buy Upside/Downside 9.0% Upside Short Interest Healthy Dividend Strength N/A Sustainability -1.25 News Sentiment 0.69 Insider Trading Selling Shares Projected Earnings Growth 22.88% See Full Details The second reason to remain bullish on Amazon is the sheer number of analysts in the bull's camp. This week alone, the team at Bank of America reiterated their Buy rating while boosting their price target to $220, and Robert W. Baird did the same last week. In fact, you would have to go back to last August to find an analyst update that didn't call Amazon a Buy and back to November to find a refreshed price target that was less than $200. This makes it all the more unusual that Amazon has yet to tick that one off the list, though, as we mentioned above, it's surely only a matter of days away. Amazon's RSI: Delivering More Room to Run The final reason to be excited about Amazon's potential is the strength of the stock's technical setup. Even with all the recent rallying and last night's record close, the stock's relative strength index (RSI) is still only at 65. For context, the RSI measures how oversold or overbought a stock is. A reading below 30 suggests the former, while a reading above 70 suggests the latter. So, with a reading of 65, Amazon is definitely on the warm side but still has a ton of room to run before anyone could call it frothy. Investors should look for shares to close above $200 in the coming days, as this will confirm the breakout and set the stage for the next rally phase to begin. Before you consider Amazon.com, 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 Amazon.com wasn't on the list. While Amazon.com currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Whirlpool Stock Surges 20% on Takeover Speculation by Bosch 2024-06-27 13:42:00+00:00 - Whirlpool NYSE: WHR shares surged 20% on word that it would receive a takeover bid from Bosch. However, the initial price action suggests this is a buy-the-rumor-sell-the-news event, so investors should be cautious. While a catalyst for higher share prices, the offer has yet to be tendered, and there are reasons to believe Whirlpool won’t get a premium price. The homebuilding market is steady, if not booming, because of demand, but the housing and remodeling market is generally weak. Whirlpool has struggled with sluggish results, contraction, and margin pressure for the last few years, and there is no sign of a turnaround in sight. Whirlpool Today WHR Whirlpool $100.88 -1.03 (-1.01%) 52-Week Range $84.18 ▼ $160.62 Dividend Yield 6.94% P/E Ratio 13.90 Price Target $111.00 Add to Watchlist To keep this deal in perspective, it is essential to understand Bosch in relation to Whirlpool. Whirlpool is forecasted to generate $16.8 billion in revenue this year; Bosch generated 5.8x that much last year. For Bosch, this is an opportunity to expand its consumer goods segment with an acquisition that overlaps its footprint. Both companies have operations on six continents; for Bosch, the opportunity is to consolidate Whirlpool’s massive portfolio of brands to align with its own and trim deadweight (excess manufacturing facilities etc) and widen the margin. Get Whirlpool alerts: Sign Up Under the Whirlpool umbrella, appliance brands include the flagship Whirlpool line, Maytag, and Jenn-Air. The company also owns peripheral brands, including Insinkerator and Gladiator GargageWorks. There are many opportunities for Bosch, and Whirlpool is playing into its hands with an effort to streamline operations on its own. What Price Will Bosch Pay for Whirlpool? It’s hard to say exactly what price Bosch will pay for Whirlpool or how the deal will be structured, but there are some benchmarks to work with. The stock is cheap relative to earnings, so there is value to be found. Trading at 8x earnings is 50% cheaper than the average S&P 500 stock, and there is an opportunity for margin expansion and improved earnings power. However, the stock is trading well above book value. Book value equals shareholder equity; at the end of last quarter, Whirlpool’s book value was near $45, suggesting it is trading at a premium today. Whirlpool Dividend Payments Dividend Yield 6.98% Annual Dividend $7.00 Annualized 3-Year Dividend Growth 13.01% Dividend Payout Ratio 96.42% Recent Dividend Payment Jun. 15 See Full Details Analysts favor a lower price point. The sentiment is up to Hold from Reduce, but only five ratings tracked by MarketBeat indicate a low conviction. The consensus price target of $111 assumes a 9% upside is still available, but it is trending lower, and the market led to the range's low end. The freshest target was set by Bank of America about a month after the last earnings report; they boosted their target from $63 but remained the lowest at $75. Among the causes for concern is the dividend. The dividend is attractive at nearly 7%, and the earrings payout ratio is below 50%, but some worries are creeping into the picture. The company's leverage remains low at 2.5x equity, but debt and liabilities are rising. With the dividend's free-cash-flow payout ratio near 65%, the company may trim the payout to divert capital in another direction. It has already ceased annual distribution increases and reduced its buyback activity. The company bought back some stock in Q1, but not enough to offset dilution. Whirlpool Experiences a Short-Covering Rally The takeover rumor sparked a fire, but the fuel was in short stock. The short interest in this name was nearly 15% in the last report and is unlikely to have fallen since. The 20% gain in the share price smacks of short-covering, and the market is set up to fall again. The move higher met resistance at a critical level that coincides with previous support and the long-term 150-day EMA. If the market can not get above that level soon, the short-sellers could quickly push this stock back to its recent lows. The risk is that this stock will move lower to set a lower low. In that scenario, a break below $85 would confirm the downtrend and take the market to the analysts' low target of $70. That target coincides with the 2020 lows and is another critical point; it may produce a bounce, but it may not be substantial. Before you consider Whirlpool, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Whirlpool wasn't on the list. While Whirlpool currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
7 Short Squeeze Stocks to Look Into for Your Portfolio 2024-06-27 13:00:00+00:00 - In 2021, a trader with a large Reddit following induced a massive rally in shares of GameStop Corp. NYSE: GME. The downtrodden gaming retailer was the most shorted stock in the entire market in January 2021, but the retail buying frenzy triggered a massive run-up in price as hedge funds were forced to cover their short positions to prevent huge losses. GameStop shares rallied from under $5 to over $80 (split-adjusted) in just under three weeks, igniting sympathy rallies in other heavily shorted stocks like AMC Entertainment Holdings Inc. NYSE: AMC and Blackberry Limited NYSE: BB. Although the rallies were short-lived, those investors who entered and exited the trades quickly booked handsome profits. A short squeeze fits the bill if you’re looking for a short-term investment strategy with a high upside. But these situations occur infrequently and companies with high short interest rarely make suitable long-term investments. Get GameStop alerts: Sign Up What is a Short Squeeze Stock? When investors think a certain stock will drop, they might consider shorting it to profit from any decline. To short a stock, you must first borrow it from your broker and immediately sell it at the current market price. If the price drops, you can rebuy shares at a lower price and return them to your broker, profiting from the difference between the short sale and the repurchase prices. But what happens if the stock you sell short doesn’t decline? You need to eventually return the shares you borrowed to your broker, as borrowing stock involves paying interest and meeting margin requirements. And if the stock price rises quickly, you might be looking at ever-increasing losses. In this scenario, the short seller will rebuy shares to "cover" their position and prevent more significant losses. Ad Colonial Metals Silver Expected for Extreme Price Action Our newest Silver Investing Guide reveals how savvy investors are capitalizing on silver's continued rise – PLUS a little-known loophole that allows investors to move a portion of their savings into silver, tax-free and penalty-free. Just click here now to download our Silver Investing Guide for FREE. This is precisely what happened in shares of GameStop in 2021, as short sellers and bullish investors accumulated shares for different purposes, creating a massive wave of one-way price pressure. Other factors may vary, but short squeeze stocks must have high short interest to create the necessary conditions. 7 Short Squeeze Stocks to Consider To find short squeeze candidates, you’ll need to understand two concepts: share float and short interest. Share float refers to the number of shares available for public purchase, while short interest is the total number of shares that have been sold short but not yet repurchased. A stock with a low number of shares in the float and high short interest could create a buying frenzy if the price rises as short sellers rush to get the available shares. Using this and other criteria, here are seven short squeeze stocks to watch out for: 1. The Children’s Place Inc. Children's Place Today PLCE Children's Place $8.35 0.00 (0.00%) 52-Week Range $6.58 ▼ $38.03 Price Target $14.50 Add to Watchlist Kids apparel retailer The Children’s Place Inc. NASDAQ: PLCE holds the ignominious distinction of being the most heavily shorted stock on Wall Street, with over 55% of the float sold short as of this writing. The company has faced internal turmoil following the departure of long-time CEO Jane Elfers and a series of earnings misses. The stock is down more than 63% year-to-date. However, the stock may have found a short-term bottom near the $8 mark, and analysts have reiterated the stock as a Hold with a consensus price target of $14. Insiders have also bought over $46 million worth of stock in the last 12 months, making PLCE an attractive short squeeze candidate (especially with a float of only 12 million shares). 2. Trupanion Inc. Trupanion Today TRUP Trupanion $29.66 -0.08 (-0.27%) 52-Week Range $18.45 ▼ $36.66 Price Target $32.80 Add to Watchlist Formerly known as Vetinsurance International, Trupanion Inc. NASDAQ: TRUP provides insurance services for dogs and cats to pet owners and veterinarians' offices. The company has a $1.2 billion market cap, and nearly 39% of shares are currently sold short. Despite investors' bearish outlook, analysts are optimistic about the stock. Of the five analysts covering the stock, three have a Buy rating (two have a Hold), and the consensus price target is $32.80, representing an upside of more than 15%. Bank of America recently upped the stock to a Buy with a new price target of $49. 3. Advantage Solutions Inc. Advantage Solutions Today ADV Advantage Solutions $3.21 +0.06 (+1.90%) 52-Week Range $1.85 ▼ $4.95 Price Target $3.43 Add to Watchlist Advantage Solutions Inc. NASDAQ: ADV is a business logistics company offering services to consumer goods manufacturers and retailers. The firm is tiny, with a market cap of less than $1 billion and short interest over 33%. Short sellers have been rewarded in 2024, as the stock has been down 28% in the last three months. Recently, ADV shares have seen some unusual volume. Over two million shares were traded on June 25, more than double the previous three-month average. Additionally, insider purchases have been increasing and consensus analyst coverage as ADV as a Moderate Buy with a price target 12% higher than the current market price. 4. Sunnova Energy International Inc. Sunnova Energy International Today NOVA Sunnova Energy International $6.51 +0.61 (+10.34%) 52-Week Range $3.37 ▼ $24.56 Price Target $15.73 Add to Watchlist Solar systems provider Sunnova Energy International Inc. NYSE: NOVA is another short squeeze possibility with a low $700 million market cap and a healthy 34% short interest. Despite losing more than half its value over the last year, NOVA could already be seeing the short squeeze commence as shares are up nearly 30% in the last month. NOVA has plenty of analyst coverage, too, with 16 Buy ratings (out of 25) and a consensus price target 177% above the current market price. 5. Forward Air Corp. Forward Air Today FWRD Forward Air $19.88 +0.21 (+1.07%) 52-Week Range $11.21 ▼ $121.38 P/E Ratio 5.81 Price Target $76.43 Add to Watchlist Another short squeeze scenario could unfold with Forward Air Corp. NASDAQ: FWRD, a freight logistics firm with a small market cap, low 25 million share float and 32% short interest. The consensus rating is Hold, but the stock recently got an upgrade from Wolfe Research, and shares have been up over 50% in the last month. The company’s next earnings report is tentatively scheduled for early August. 6. EVgo Inc. EVgo Today EVGO EVgo $2.54 +0.20 (+8.55%) 52-Week Range $1.65 ▼ $5.95 Price Target $4.00 Add to Watchlist The electric vehicle sector hasn’t been setting the market on fire recently, but EVgo Inc. NYSE: EVGO could be stock to watch for a potential short squeeze. The firm runs a charging station network operating in 34 states and has a $698 million market cap. Short interest sits at 33%. Of the seven analysts covering the stock, four have a Buy rating and three list a Hold rating. The consensus price target is $4.00, representing more than 73% upside potential. The company has a potential earnings catalyst coming in August as it looks for its seventh consecutive beat. 7. Zynex Inc. Zynex Today ZYXI Zynex $9.03 +0.10 (+1.12%) 52-Week Range $6.88 ▼ $13.77 P/E Ratio 39.26 Price Target $18.00 Add to Watchlist Medical equipment manufacturer Zynex Inc. NASDAQ: ZYXI makes devices to help chronic and acute pain, and aid in rehabilitation programs. Zynex has only a $277 million market cap and a free share float of 15 million, with 33% short interest. The stock reached an all-time high near $26 in June 2020 but has since plummeted to under $9 per share. ZYXI shares have intriguing short-squeeze characteristics. In addition to high short interest and a small float, Royal Bank of Canada and HC Wainwright recently reiterated Zynex as a buy with an average price target double the current market price. How We Decided These 7 Short Squeeze Stocks Short squeezes are rare, and markets constantly evolve, so you should consider various factors when researching stocks. Short interest is crucial, but it's only one of the essential aspects. Each of the seven stocks in this article met two or three of the following criteria: High Short Interest: You can’t have a short squeeze without short sellers rushing to cover their positions, so every stock included in this list has at least 30% of its float sold short. You can’t have a short squeeze without short sellers rushing to cover their positions, so every stock included in this list has at least 30% of its float sold short. Low Float: When highly shorted stocks have low floats, it can become a game of musical chairs where short sellers don’t want to be left without a seat when the music stops. The lower the float, the fewer shares are available for short covering. When highly shorted stocks have low floats, it can become a game of musical chairs where short sellers don’t want to be left without a seat when the music stops. The lower the float, the fewer shares are available for short covering. Insider Buying: While insiders buy shares for all kinds of reasons, an uptick in insider buy rates could signal an increasingly bullish outlook for the company. While insiders buy shares for all kinds of reasons, an uptick in insider buy rates could signal an increasingly bullish outlook for the company. Increasing Volume: Unusual volume activity could indicate a short squeeze brewing. If demand for the stock rises, it could mean fewer shares available for short sellers who need to return stock to their brokers. Unusual volume activity could indicate a short squeeze brewing. If demand for the stock rises, it could mean fewer shares available for short sellers who need to return stock to their brokers. Potential Catalyst: A short squeeze is often triggered by a catalyst, such as a blowout earnings report, successful product launch, or clinical trial -- or, as in the case of GameStop, a Reddit trader encouraging his large retail following. Potential Risks of Short Squeezing Even if you find a short squeeze, you must know the risks involved. Here are there to consider: Mistiming the Trade: Short squeezes are short-lived phenomena that require proper timing. If you wait too long or buy too early, you could miss the rally and negate profits. Short squeezes are short-lived phenomena that require proper timing. If you wait too long or buy too early, you could miss the rally and negate profits. Degrading Company Fundamentals: Investors don’t short companies without good reason. Most heavily shorted companies have some fundamental risk, like high debt levels, constant earnings misses, or executive mismanagement. Investors don’t short companies without good reason. Most heavily shorted companies have some fundamental risk, like high debt levels, constant earnings misses, or executive mismanagement. Halts and Regulatory Interventions: Short squeezes are violent and volatile moves, and when stocks move fast and hard, regulators can get involved. Trading halts could freeze short squeezes and prevent investors from executing trades. Short Squeezes Require Specific Market Conditions, So Be Flexible When Hunting Them Short squeezes can be exciting (and profitable), but they’re also rare and frequently misdiagnosed. Most heavily shorted companies will never see a squeeze; even if they do, timing it correctly is challenging. Investors must be ready to pivot quickly if the short squeeze conditions fail to materialize. Want to easily track market metrics like short interest, market cap, and free float? MarketBeat has you covered. Sign up for our newsletter to have insights directed right to your inbox.
Trump previews attacks on Biden's son ahead of debate 2024-06-27 10:00:00+00:00 - As Donald Trump and Joe Biden prepare to face off on the debate stage, Trump has previewed one line of attack against his Democratic opponent in a long-running feud over the former president’s attempts to tie Biden to his son’s foreign business dealings. Hunter Biden’s struggles have been elevated in recent weeks by his felony conviction in a gun trial — proceedings that led Republicans to take a victory lap when government witnesses confirmed the authenticity of his abandoned laptop computer, materials from which have stoked GOP claims that he spent years profiting off his proximity to his father. Now, Biden and Trump are poised to face off for the first time since 2020 in a debate hosted by CNN at its Atlanta studio, with Trump suggesting he will reprise the attack line. “It wasn’t Russian disinformation. It was a made-up story for election interference purposes,” Trump said at a recent conservative conference. “I assume we’re going to be talking about that at the debate.” There will be no in-person audience for the 90-minute debate, a dynamic that threatens to upend expectations. “It’s telling you what is going on, indirectly, with applause or not applause,” Trump said in an interview with the Washington Examiner. He acknowledged he interrupted Biden too often during the first debate against him in September 2020 and said he had learned from the experience. Trump spokeswoman Karoline Leavitt said there is a ready-made opportunity for the moderators to showcase a level playing field for Trump on Thursday. “If CNN wants to prove they’re fair and balanced, they should ask Joe Biden why he lied about the existence of Hunter Biden’s laptop on the debate stage four years ago in 2020,” Leavitt told NBC News. In the October 2020 general election debate, after Trump mentioned the laptop, Biden responded that it was a "Russian plan." Biden is preparing to face several possible Trumps on Thursday, including a grievance-filled Trump and a version who hews to a more disciplined message, with Biden’s advisers combing through recent interviews to identify his trigger points. Trump has shied away from attacking Hunter Biden over his addiction struggles, an attitude that some say lends itself to holding out an olive branch to the former president’s son. A Trump ally suggested he would be wise to offer a commutation of Hunter Biden’s sentence if he wins. There is evidence to suggest that Trump holds a softer outlook toward Hunter Biden than he does his father, whom Trump’s allies expect he'll go after following Trump’s conviction on charges related to a hush money payment. “Trump doesn’t see Hunter Biden’s struggles with addiction as a target,” a former senior Trump administration official said. “The animosity is towards Joe Biden, and there’s the notion that Hunter wouldn’t be in that position if it wasn’t for his father.” At Camp David, Maryland, Biden has been preparing for how the debate could unfold. That includes the idea that Trump might raise the subject of Hunter Biden and his legal issues. Meanwhile, North Dakota Gov. Doug Burgum, a top vice presidential running mate prospect, has challenged CNN to raise questions about the laptop, Trump's political action committee has floated potential lines of inquiry for the moderators, and Trump's own Truth Social posts seem to heighten the possibility that he'll mention the topic, a source familiar with debate preparations and discussions said. But Biden's advisers don't think it will definitively come up in the debate or be a significant focus if it does, and aides have tracked public comments by Trump suggesting he might soften his tone. There’s a chance Trump may sidestep the issue altogether. As Hunter Biden’s recent trial on gun charges placed his spiral into drugs under a microscope, Trump has shied away from attacking him over his addiction. Instead, he spoke at length about his own brother’s struggle with alcoholism in an interview with Sean Hannity while Biden’s trial was underway. “You have sympathy for addiction — I think most Americans do,” Hannity said before he tried to direct the interview to what he called the “bigger issues involving the Biden family.” Trump interjected. “Excuse me,” he said. “Look, I feel very badly for them in terms of the addiction part of what they have right now, because I understand the addiction world. ... Frankly, it would be nice if people would do certain things and live certain ways, but you’re not able to. They’re just not able to break it.” Some Republican allies believe talking about Hunter Biden’s conviction is bad politics for Trump because it risks placing a spotlight on his own legal issues. After a historic nearly two-month trial, he was convicted in New York City last month of falsifying business records to cover up a sex scandal that threatened to derail his 2016 campaign. His support among swing and independent voters appeared to falter in a recent poll by Fox News, in which Joe Biden took a slight lead over Trump in a general election match-up. That lead is within the margin of error. “It gets us off message,” said a Republican consultant with ties to Trump. “Who knows what happens if Biden says something that ticks him off? But the more we can talk about issues, the better off we’re going to be.” The consultant said it risks setting off a tit-for-tat that is unlikely to do Trump any favors. “He’ll say you’re a convicted felon, and it’s going to turn off the independents; it’s going to turn off those swing voters,” the consultant said. Biden's aides feel that he had a "very strong" moment when, in 2020, Trump swiped at Hunter Biden on the debate stage, an exchange they would be glad to see repeated, a source familiar with the preparations and discussions said, noting that the president is happy to reiterate his support for his son in his recovery from addiction. The source said Biden is prepared to restate what he has already said publicly: that he has no plans to pardon his son or commute his sentence. Trump, meanwhile, has been advised to focus on the issues and is being prepped on policy. “The more Donald Trump can talk about issues, can talk about his accomplishments and can talk about his vision for the country, the better off we’re going to be,” this person said. A source familiar with some of the strategies being discussed echoed that sentiment, saying, “Trump will focus on the issues that people know and love him for.” The danger, this person said, is “you bring up Hunter, [Biden] brings up the New York court verdict,” meaning Trump’s recent conviction on charges related to the hush money payment stemming from the 2016 campaign. Republican leaders in the House this month sent criminal referrals to the Justice Department recommending charges against Hunter and James Biden, the president’s brother, claiming statements they made before the Oversight and Judiciary committees implicate Joe Biden in what Republicans say was an effort to profit off his family’s business dealings while he was vice president. Biden has denied wrongdoing, and GOP investigations have yet to deliver evidence implicating him. But hammering the issue won’t matter unless Biden faces criminal penalties. “We proved this with Trump,” a former Trump adviser said. “The allegations didn’t hurt until he was convicted.” During the first debate in 2020, Biden said Trump’s allegations that his son took payments from foreign business associates when Biden was vice president were “totally discredited.” When the two faced off in a second debate weeks later, Trump returned to the issue, seeking to tie Biden to materials allegedly pulled from a computer Hunter Biden had abandoned at a Delaware repair shop during his spiral into drug addiction. “If this is true, then he’s a corrupt politician,” Trump said before he turned to Biden. “So don’t give me the stuff about how you’re this innocent baby.” In response, Biden cited a letter from 51 former intelligence officials who claimed the files on the laptop had “the classic earmarks” of Russian disinformation. It was an allegation poised to draw Trump’s ire after he faced a special counsel investigation over his campaign’s ties to Russia and was deemed a would-be “puppet” of Russian President Vladimir Putin by Hillary Clinton four years earlier. The White House has denied that Biden had any involvement in his son’s business deals. Furthermore, while Trump has continued to raise money off of his conviction in New York, a former adviser said the frequent reminders risk damaging his appeal to independent and swing voters. “Right now, he’s Richard Nixon with two fingers up saying, 'I’m not a crook,'” the former adviser said. And there are other pitfalls. If Trump attacks Biden’s age, “he brings up that they are the same age,” the ally said. Another source familiar with Trump’s planning said: “I told him to stay away. But no one tells Donald what to do.”
FedEx stock continues to soar on Q4 beat, guidance 2024-06-27 05:33:00+00:00 - FedEx stock (FDX) is delivering serious gains in Wednesday’s trading after the freight and parcel service beat fiscal fourth-quarter earnings estimates on Tuesday. In addition to positive results, the company announced a $2.5 billion share buyback plan and raised its full-year 2025 guidance. Market Domination's Julie Hyman and Josh Lipton examine FedEx's stock momentum as it evaluates the worth of its freight segment and the success of cost-cutting initiatives. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Luke Carberry Mogan. Video Transcript Let's talk about fedex to those shares soaring after topping estimates in the fiscal fourth quarter, the company sharing more details on the success of its massive cost cutting initiatives and unveiling plans to reach, we purchase up to $2.5 billion worth of shares in its fiscal year which is already begun fiscal 2025. The company also in a bit of a surprise. It's exploring options for business which also analysts seem to like here but also the forecast for the full year was also a pleasant surprise for investors. Yes, they did listen, they forecast profit above consensus, you know, not buying back 2.5 billion of stock for the next year. But to your point, Julie, I think ears did really perk up around that freight business. They talked about assessing the role of that unit in the portfolio and quote potential steps to further unlock sustainable shareholder value. They said we're committed to completing this review thoroughly and deliberately by the end of the calendar year and certainly that made some headlines and got some attention this amid the backdrop of a lot of cost cutting and efficiency finding at the company.
Micron Technology beats estimates for third-quarter revenue on AI chip demand 2024-06-27 05:16:00+00:00 - (Reuters) -Chipmaker Micron Technology beat estimates for third-quarter revenue on Wednesday, driven by a surge in demand for its memory chips from the booming AI industry and improved pricing in other markets. However, shares of the Idaho-based firm fell 7.2% in extended trading after it forecast fourth-quarter revenue largely in line with expectations. Investors had sent the stock up 13% this month, ahead of earnings, on optimism that Micron would benefit from AI-driven demand. The company forecast revenue of $7.6 billion, plus or minus $200 million, for the current quarter, compared with an estimate of $7.6 billion, according to LSEG data. Micron is one of the few providers of high-bandwidth memory chips used in the most advanced AI systems, allowing it to cash in on surging demand for the semiconductors. "We are gaining share in high-margin products like High Bandwidth Memory and our data center SSD revenue hit a record high, demonstrating the strength of our AI product portfolio across DRAM and NAND," Micron CEO Sanjay Mehrotra said. The company said in March that its entire supply of HBM chips was sold out for 2024, while the majority of the 2025 production had been allocated. The chips are used in the AI processors designed by Wall Street darling Nvidia. Micron reported revenue of $6.81 billion for the third quarter, compared with an estimate of $6.67 billion, according to LSEG data. After Micron's earnings, shares of Nvidia dropped 1.4%, Advanced Micro Devices were down 0.7%, and Intel slipped 0.4%. (Reporting by Harshita Mary Varghese in Bengaluru and Max A. Cherney in San Francisco; Editing by Pooja Desai)
Donald Trump's Fed Takeover Proposal Gains Support From Real Estate Mogul Grant Cardone: 'I Like It' 2024-06-27 05:06:00+00:00 - Donald Trump's Fed Takeover Proposal Gains Support From Real Estate Mogul Grant Cardone: 'I Like It' Real estate tycoon Grant Cardone has supported former President Donald Trump’s proposal to take executive control of the Federal Reserve, citing concerns about the central bank’s impact on the U.S. economy. Cardone endorsed the idea in a tweet, saying, "Why not? The president can direct the Fed to do the best thing for the people." He criticized Fed Chair Jerome Powell, calling him "an enemy of the American Middle class." He argued that the Fed's aggressive interest rate hikes aimed at controlling inflation sparked by the pandemic have made homebuying "impossible" and put hundreds of small banks at risk. Don't Miss: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it ? Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." This high-yield real estate fund, offering an 8% yield, makes earning passive income easier than ever. Cardone’s comments come in the wake of a Wall Street Journal report that said a small group of Trump’s allies had drafted a document outlining a vision for the central bank that would subject Fed policy to White House review and potentially allow the president to play a role in interest rate decisions. Trump has long been critical of the Fed’s policies, particularly under Chair Powell, whom he appointed in 2017. During his presidency, when the Fed was raising interest rates from very low levels, Trump criticized the central bank for not keeping rates lower, arguing that higher rates were holding back economic growth. The landscape has since shifted. The Fed raised rates last year to their highest levels since the turn of the century and has kept them there to tame inflation that soared to a four-decade high in 2022 and remains above the central bank's 2% target. Trending: This real estate fund backed by Uber CEO Dara Khosrowshahi gives you instant access to a portfolio of rental properties, and you only need $100 to get started. "Jerome Powell has proved to be an enemy of the American Middle class," Cardone said on X. "He continues to rant about using interest rates to control inflation when all he has done is make buying a home impossible and put 600 small banks at risk." Cardone’s support for Trump’s proposal was accompanied by a list of economic woes he attributes to current Fed policy, including a depressed housing market, ballooning credit card debt, and increasing bankruptcies. The proposal, however, has sparked concern among some economists and lawmakers. Story continues Sen. Kevin Cramer (R-N.D.) expressed opposition, according to the WSJ. "Given their charge, their independence is critical to doing it in an unbiased, nonpolitical way," the Senator said. "There's a reason that there's not just one decision maker — that safeguards are built into a board of governors." Experts warn that eroding the Fed’s independence could have far-reaching consequences. According to the report, Krishna Guha, vice chairman at Evercore ISI, noted in a client memo, "The market would react very badly to any effort to tame the Fed, and we think this would cause the administration to back off." Established in 1913, the Fed operates as an independent agency to insulate monetary policy from short-term political pressures. Congress has given it a dual mandate to promote maximum employment and stable prices, which Chair Powell frequently references during his addresses. The report said Trump’s attempt (if elected in November) to influence the Fed’s leadership would encounter institutional obstacles. Like Supreme Court justices with lifetime tenures, Fed governors serve 14-year terms to ensure their independence from political pressure, making it challenging to remove them solely over policy disagreements. Keep Reading: "ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now! Get the latest stock analysis from Benzinga? This article Donald Trump's Fed Takeover Proposal Gains Support From Real Estate Mogul Grant Cardone: 'I Like It' originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Big banks pass Fed stress test as they fight stricter capital rules 2024-06-27 04:30:00+00:00 - The 31 large US banks that participated in a Federal Reserve stress test would all be able to withstand a severe global recession, a new demonstration of strength as they push back on stricter regulations that would require them to hold more capital. Results released by the Fed Wednesday show that these banks would have enough capital on hand to absorb losses and continue lending during a two-year scenario where US unemployment climbs to 10%, commercial real estate prices fall 40%, and the stock market plunges 55%. Their losses in this simulation collectively amounted to $685 billion. That included $175 billion from credit cards, $142 billion from business loans, and nearly $80 billion from commercial real estate. The biggest of the group — JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC), Citigroup (C), Goldman Sachs (GS), and Morgan Stanley (MS) — would all have capital buffers close to double the Fed’s 4.5% minimum requirement under this extreme scenario. Larger regional banks such as PNC (PNC) and Truist (TFC), Regions (RF), Citizens (CFG), and M&T Bank (MTB) also had relatively higher capital levels than the minimum. One regional bank that has struggled this year, New York Community Bancorp (NYCB), was not part of the latest test. It will instead be examined in 2025. "The goal of our test is to help to ensure that banks have enough capital to absorb losses in a highly stressful scenario," Fed vice chair for supervision Michael Barr said in a release. “This test shows that they do.” Federal Reserve vice chair for supervision Michael Barr. (REUTERS/Evelyn Hockstein) (REUTERS / Reuters) But there were signs of some new weaknesses despite the passing grade applied to all banks. The aggregate decline in capital ratios for the banks during a hypothetical downturn was larger than the decline posted by banks in last year’s test, when fewer lenders were examined. "The test resulted in higher losses because bank balance sheets are somewhat riskier and expenses are higher," Barr added. He cited three main factors driving the capital decline: "substantial" increases in bank credit card balances, riskier corporate credit portfolios, and less projected income due to higher expenses and lower fee revenue. Results varied widely between banks. The bank with the highest rate of loan losses under the Fed’s "severely adverse scenario" was Discover (DFS), followed by Capital One (COF). Capital One agreed earlier this year to purchase Discover in a deal that still needs regulatory approval to close. The bank with the lowest rate of loan losses was Charles Schwab (SCHW). Capital One headquarters in McLean, Va. (REUTERS/Kevin Lamarque) (REUTERS / Reuters) The Fed first started applying stress tests to a wide group of banks in the aftermath of the last financial crisis. It was mandated annually by law for institutions with more than $100 billion in assets as part of legislation that passed in 2010. Story continues A law passed in 2018 tailored the tests by banks’ size, meaning those in the range of $100 billion-$250 billion would be tested every other year. Some Democrats and regulators last year were critical of that 2018 adjustment. They argued it could have helped prevent the problems that amassed at Silicon Valley Bank, which had not been subjected to a stress test before it failed in 2023. Banks typically use the results of the annual Fed stress tests to determine how much they should have on their balance sheet to absorb shocks and how much they have left over for dividends and buybacks. Some banks are expected to make announcements late Friday about how much money they now plan to return to shareholders. Any moves are "likely to be modest for many" until lenders get more clarity from regulators about a new set of capital requirements proposed last year, said RBC Capital Markets analyst Gerard Cassidy. The initial version called for raising capital levels an aggregate 16% and banks have spent the last year pushing back aggressively on the plan. Regulators have signaled that alterations are coming, with Barr saying in May that he expects "broad and material changes" to the proposal. Bloomberg reported this week that a new proposal could drop the capital hikes as low as 5%. Click here for in-depth analysis of the latest stock market news and events moving stock prices. Read the latest financial and business news from Yahoo Finance
Why Amazon Stock Popped on Wednesday 2024-06-27 04:30:00+00:00 - Shares of Amazon (NASDAQ: AMZN) climbed higher on Tuesday, adding as much as 4.5%. As of 2:10 p.m. ET, the stock was up 4.1%. There were a couple of catalysts that sent the e-commerce titan higher. One was a bullish take from a Wall Street analyst; the other was the unexpected gain on one of its investments. Top pick Analysts at Bank of America said that Amazon remains their top pick among large-cap and FAANG stocks in 2024, according to online investment publication The Fly. The analysts maintained their buy rating on the stock while raising their price target to $220, up from $210. This suggests potential gains for investors of 18%, compared to Tuesday's closing price. The analysts noted that Amazon has significant potential for efficiency improvements this year. Despite progress made in 2023, Amazon remains below 2018 levels when measured using a number of logistics-utilization metrics the investment bank tracks. While a rebound in digital retail has been the primary driver so far this year, margin expansion could provide the next leg higher. The other catalyst driving Amazon higher today was the company's investment in Rivian Automotive (NASDAQ: RIVN). Amazon owns more than 162 million shares of Rivian stock, amounting to a 16.4% stake. The electric-vehicle (EV) maker has been weighed down by results that weren't as good as Wall Street predicted and a general slowing in the EV market. As a result, Rivian stock was recently down as much as 69% from its all-time high reached late last year. However, Rivian announced it would form a new joint venture with Volkswagen AG, including an investment of up to $5 billion. Rivian stock vaulted more than 20% higher on the news (as of this writing), which boosted the value of Amazon's stake in the company by roughly $415 million. Time to buy? Amazon stock has been on fire, up more than 50% over the past year. Investors have been bullish on the rebound in online retail, the company's foray into artificial intelligence (AI), and a resurgence in its cloud growth. At less than 3x forward sales, Amazon is attractively priced, particularly when viewed in the light of its multiple growth drivers. Should you invest $1,000 in Amazon right now? Before you buy stock in Amazon, 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 Amazon 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 $772,627!* 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 June 24, 2024 Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Danny Vena has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Bank of America. The Motley Fool has a disclosure policy. Why Amazon Stock Popped on Wednesday was originally published by The Motley Fool
Average 401(k) Balances Fall Short Across All Ages — Many Over 50 Barely Have Enough To Buy A New Car 2024-06-27 03:10:00+00:00 - The average new car costs nearly as much as the median American aged 45-54 has saved for retirement — a staggering $47,000 versus $48,301 — highlighting the immense financial pressures faced by many as they approach their golden years. Don't Miss: The average American couple has saved this much money for retirement — How do you compare ? Can you guess how many retire with a $5,000,000 nest egg? – How does it compare to the average? While 401(k) plans are fundamental to retirement savings, Vanguard's "How America Saves 2023" report paints a concerning picture. The report indicates that the median 401(k) balance varies significantly across age groups. 401(k) Balances by Age Group Under 25: Average: $5,236 Median: $1,948 25-34: Average: $30,017 Median: $11,357 35-44: Average: $76,354 Median: $28,318 45-54: Average: $142,069 Median: $48,301 55-64: Average: $207,874 Median: $71,168 65+: Average: $232,710 Median: $70,620 The gap between average and median balances highlights disparities in savings habits. While high earners often save closer to the annual limit, many others have significantly lower or zero balances. Trending: Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you. The Influence of Auto-Enrollment Auto-enrollment has significantly increased 401(k) participation rates. Since the Pension Protection Act of 2006, the use of automatic enrollment has more than tripled. Currently, nearly 58% of plans and 76% of plans with over 1,000 participants have implemented this feature. This strategy effectively combats the inertia that often prevents voluntary enrollment. Participation Rates by Age Vanguard's data shows that participation rates vary by age. Employees under 25, who often face student loan payments and high housing costs, have the lowest participation rates at 62%. In contrast, more than 80% of employees aged 35 to 64 contribute to their employer's plan. Overall, the introduction of automatic enrollment has significantly boosted participation rates, demonstrating its effectiveness in encouraging more consistent savings habits. Factors Contributing to Low Savings Several factors contribute to the lower-than-expected 401(k) balances. Economic instability, such as inflation and market fluctuations, can deter individuals from saving or cause them to withdraw from their retirement accounts prematurely. Additionally, many workers prioritize immediate financial needs, such as paying off debt or covering daily living expenses, over long-term savings. Trending: How much money will a $200,000 annuity pay out each month? The numbers may shock you. Story continues Tips for Boosting 401(k) Savings Maximizing the benefits of a 401(k) requires strategic actions: Maximize Contributions: Contribute the maximum allowed amount each year. Utilize Employer Matching: Take full advantage of employer matching contributions. Catch-Up Contributions: If you are 50 or older, use the catch-up contribution option to add up to $7,500 more annually. Regular Adjustments: Review and adjust your contributions regularly, especially after salary increases or bonuses. Seek Professional Advice: Consult a financial advisor to create a comprehensive retirement plan. The data from Vanguard's report showcases the need for heightened awareness and proactive management of retirement savings. Individuals should prioritize their long-term financial health by leveraging the tools and strategies available to them. Understanding the nuances of 401(k) savings and making informed decisions can help bridge the gap. Read Next: Miami is expected to take New York's place as the U.S. Financial Capital. Here's how you can invest in the city before that happens . Warren Buffett flipped his neighbor's $67,000 life savings into a $50 million fortune — How much is that worth today? "ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now! Get the latest stock analysis from Benzinga? This article Average 401(k) Balances Fall Short Across All Ages — Many Over 50 Barely Have Enough To Buy A New Car originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
McDonald’s Says Plant-Based Test Didn’t Pan Out in US 2024-06-27 01:45:00+00:00 - (Bloomberg) -- A top McDonald’s Corp. executive reiterated that the company’s previous US test of plant-based meat didn’t work out and added that the burger chain’s diners don’t go to its restaurants for salads. Most Read from Bloomberg A test of its McPlant burger in San Francisco and Dallas “was not successful in either market,” Joe Erlinger, the chain’s US chief, said at the Wall Street Journal’s Global Food Forum in Chicago. That test wrapped up in 2022, the company said following the remarks. US consumers aren’t looking for “McPlant or other plant-based proteins from McDonald’s,” he added. The company has said plant-based food has fared better in European markets. Erlinger said that “if people really want salads from McDonald’s, we will gladly relaunch salads. But what our experience has proven is that’s not what the consumer’s looking for.” Shares of Beyond Meat Inc., which has partnered with McDonald’s to produce the McPlant burger, erased an earlier decline as of 1:38 p.m. in New York trading Wednesday to be little changed on Wednesday. McDonald’s shares were little changed. Instead of plant-based options, McDonald’s is investing in its chicken offerings as consumers lean toward that protein. The company sells more chicken than beef these days, he added. “Some of it’s driven by affordability,” he said. “Chicken is less expensive to produce, and so for a consumer that’s looking for more affordable food, chicken is a great option right now.” (Updates first paragraph and share trading, and adds details on salads.) Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.
Delta Air Lines opens spacious new lounge at JFK airport. See what's inside. 2024-06-26 22:26:00+00:00 - Delta Air Lines this week opened its largest ever airport lounge for its premium passengers at John F. Kennedy International Airport in New York, and the company plans to open similar spaces in major cities across the U.S. Called Delta One, the 39,000-square-foot lounge features a 140-seat bar and restaurant and wellness center complete with serenity rooms and full-body massage chairs. Other amenities include valet services, a juice bar, eight shower suites for bathing, a bakery and food market section for travelers who want to grab snacks on the go. The bar's Art Deco-inspired lighting fixtures, fluted glass and a gold leaf ceiling and chandeliers are a nod to Radio City Music Hall, the company said in a statement. The space "has a glamorous feel to it," Delta CEO Ed Bastian told CBS News. Delta One is different from Delta's existing Sky Club lounge spaces, in that it is larger and has more amenities. Passengers can get access to the space if they pay an annual membership to the Sky Club or are holders of certain credit cards. In many locations, Delta Sky Club lounges also feature a bar, wireless internet, showers and more. Bastian noted that Delta's Sky Club space at Los Angeles International Airport has long been regarded as the highest standard for luxury lounge seating before a flight, but he said the Delta One at JFK raises the bar. The Wellness Room at Delta Air Lines Delta One lounge features eight shower stations for travelers weary from a long flight. Jason Dewey 2024 "LA is the standard and this [Delta One] is the new standard," Bastian said. A Delta Sky Club membership or qualifying credit cards will not grant someone access to Delta One, the airline said. The space is exclusive for people traveling internationally or people boarding a Delta transcontinental flight. The lounge, which also features beverage cart service, is located between Concourses A and B in Terminal 4. Bastian told CBS News that the company will open a similar Delta One in Los Angeles this fall next to the existing Delta Sky Club space and another at Boston's Logan Airport. Seattle will also see a Delta One lounge in the near future, he added. Delta's new lounge opens just as the nation enters peak holiday traveling season. About 5.7 million people are expected to fly during the first week of July, nearly a 7% increase compared to last year, according to travel club AAA. The price of domestic flights are projected to be 2% cheaper this holiday compared to last year, AAA said. The Federal Aviation Administration said June 27 is expected to be the busiest day in air travel this year with 53,677 flights scheduled. Delta said it plans to fly 5.8 million passengers between June 28 and July 7.
HBO's upcoming 'Harry Potter' TV show just got a major update — here's everything to know 2024-06-26 21:49:00+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 A "Harry Potter" TV show is in the works. At a press event in LA in April 2023, Warner Bros. Discovery first confirmed it's expanding the wizarding world with an upcoming TV series, originally planned for release on its streaming service, Max. On Tuesday, Variety reported that the series would be branded as an HBO original instead. The upcoming untitled "Harry Potter" series will feature a new cast to bring a new generation into the wizarding world franchise created by author J.K. Rowling. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Here's everything we know so far about the show. Advertisement The series will be a 'faithful adaptation of the beloved original Harry Potter books' Rupert Grint, Daniel Radcliffe, and Emma Watson starred in the "Harry Potter" films. Warner Bros. "We are delighted to give audiences the opportunity to discover Hogwarts in a whole new way," said Casey Bloys, Chairman and CEO of HBO & Max content in a press release shared with Business Insider. "Harry Potter is a cultural phenomenon and it is clear there is such an enduring love and thirst for the Wizarding World." The series will "dive deep into each of the iconic books that fans have continued to enjoy for all of these years." Related stories In the same release, Rowling said: "Max's commitment to preserving the integrity of my books is important to me, and I'm looking forward to being part of this new adaptation which will allow for a degree of depth and detail only afforded by a long-form television series." Francesca Gardiner will be the showrunner and J.K. Rowling will serve as an executive producer J.K. Rowling is the author of the "Harry Potter" book series. Evan Agostini/Invision/AP Gardiner's previous credits include HBO's "Succession" and "His Dark Materials" and BBC America's "Killing Eve." Mark Mylod, most recently recognized for his work on "Succession," will direct multiple episodes of the show. Advertisement The show's executive producers include Gardiner, Mylod, Rowling, Neil Blair, and Ruth Kenley-Letts. "Harry Potter" franchise producer David Heyman is also in talks to executive produce. Users on X (formerly known as Twitter) took to the platform to criticize Max for its decision to involve Rowling, who has been accused of making transphobic comments, in the project. Max did not respond to a previous request for comment. The show is eyeing a release in 2026 Daniel Radcliffe as Harry in "Harry Potter and the Sorcerer's Stone." Warner Bros. Warner Bros.' eight "Harry Potter" films comprise one of the studio's most successful franchises, grossing over $7 billion worldwide at theaters. The TV series will stream on the service in the US and globally. Advertisement WB Discovery CEO David Zaslav shared details about the expected debut during an earnings call in February, per The Hollywood Reporter. Zaslav said that he, Bloys, and WBD TV chief Channing Dungey met with Rowling and her team to discuss the show. "Both sides are thrilled to be reigniting this franchise," Zaslav said. "Our conversations were great, and we couldn't be more excited about what's ahead. We can't wait to share a decade of new stories with fans around the world." This story was originally published in April 2023 and has been updated to reflect recent developments. Kirsten Acuna contributed to a previous version of this article.
Chairman of federal control board overseeing Puerto Rico finances to step down 2024-06-26 21:44:57+00:00 - SAN JUAN, Puerto Rico (AP) — The chairman of a federal control board that oversees Puerto Rico’s finances announced Wednesday he is stepping down as the U.S. territory struggles to restructure more than $9 billion in debt held by its troubled power company. The announcement by David Skeel came the same day U.S. President Joe Biden appointed Luis Ubiñas as the newest board member and reassigned former bankruptcy judge Arthur González and educator Betty Rosa to the board. Ubiñas, an investor and business consultant, will fill the spot left by Antonio Medina as the board enters its third term. Skeel said his tenure will end when Biden appoints someone to fill his seat. Skeel, who served on the board for nearly eight years, said it has achieved a stable budget for Puerto Rico and massively reduced the government’s debt. Last week, the board announced it would ask the judge overseeing the restructuring plan for Puerto Rico’s Electric Power Authority to reopen the hearings related to the debt. After a series of hearings in March, a federal court ruled that bondholders have the right to be repaid the full amount of their debt. The decision was a setback for the board and comes as Puerto Ricans continue to experience frequent electrical outages. ___ Follow AP’s coverage of Latin America and the Caribbean at https://apnews.com/hub/latin-america
Amazon plans to launch discount store in bid to fend off Temu and Shein 2024-06-26 21:38:00+00:00 - Amazon plans to launch a new section on its site dedicated to low-priced fashion and lifestyle items that will allow Chinese sellers to ship directly to U.S. consumers, CNBC has learned. The storefront, announced at an invite-only conference for Chinese sellers on Wednesday, would mark Amazon’s most aggressive attempt yet to fend off growing competition from e-commerce upstarts Temu and Shein, which both have ties to China, the world’s second-largest economy. Temu and Shein have expanded their presence in the U.S. in recent years, luring an increasing share of American shoppers with their rock-bottom prices on clothing, electronics, home goods and other products. Amazon’s storefront will feature a range of unbranded items, many priced under $20, according to a presentation to Amazon sellers viewed by CNBC. A mock-up of the storefront showed a gua sha facial massaging tool, arm weights and phone cases, among other items for sale. Amazon will ship the products directly from China to the U.S., with the goal of delivering them to shoppers within nine to 11 days, the presentation shows. In the past, Amazon sellers in China have relied on the company’s fulfillment services, called Fulfillment by Amazon, to send goods to warehouses in the U.S. before they are dispatched to customers. The company pitched the arrangement as cost savings for Amazon sellers in China, and said merchants would be able to test new items through small-batch production. Shein uses a similar model, referred to as on-demand manufacturing, producing a limited quantity of goods and manufacturing more as demand increases. In a statement to CNBC, Amazon spokesperson Maria Boschetti said, “We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience.” Boschetti declined to comment further on the company’s plans, which were first reported by The Information. It is unclear when Amazon intends to debut the storefront, but the presentation notes it will start accepting products this fall. China-based merchants have made up a sizable contingent of Amazon’s marketplace for many years, but the company is making a renewed push to court sellers there as it faces growing competition. In December, Amazon announced a new “innovation center” in Shenzhen, a popular technology and manufacturing hub, and it also slashed the fees it charges merchants selling clothing priced below $20. Amazon said in 2023 the number of items sold by Chinese sellers on its site grew more than 20% year over year, while the number of Chinese merchants with sales upward of $10 million increased 30%.
Amazon plans to launch discount store in bid to fend off Temu and Shein 2024-06-26 21:37:00+00:00 - An Amazon contract worker stacks packages onto a luggage cart outside an apartment building in New York on April 16, 2024. Amazon plans to launch a new section on its site dedicated to low-priced fashion and lifestyle items that will allow Chinese sellers to ship directly to U.S. consumers, CNBC has learned. The storefront, announced at an invite-only conference for Chinese sellers on Wednesday, would mark Amazon's most aggressive attempt yet to fend off growing competition from e-commerce upstarts Temu and Shein, which both have ties to China, the world's second-largest economy. Temu and Shein have expanded their presence in the U.S. in recent years, luring an increasing share of American shoppers with their rock-bottom prices on clothing, electronics, home goods and other products. Amazon's storefront will feature a range of unbranded items, many priced under $20, according to a presentation to Amazon sellers viewed by CNBC. A mock-up of the storefront showed a gua sha facial massaging tool, arm weights and phone cases, among other items for sale. Amazon will ship the products directly from China to the U.S., with the goal of delivering them to shoppers within nine to 11 days, the presentation shows. In the past, Amazon sellers in China have relied on the company's fulfillment services, called Fulfillment by Amazon, to send goods to warehouses in the U.S. before they are dispatched to customers. The company pitched the arrangement as cost savings for Amazon sellers in China, and said merchants would be able to test new items through small-batch production. Shein uses a similar model, referred to as on-demand manufacturing, producing a limited quantity of goods and manufacturing more as demand increases. In a statement to CNBC, Amazon spokesperson Maria Boschetti said, "We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience." Boschetti declined to comment further on the company's plans, which were first reported by The Information. It is unclear when Amazon intends to debut the storefront, but the presentation notes it will start accepting products this fall. China-based merchants have made up a sizable contingent of Amazon's marketplace for many years, but the company is making a renewed push to court sellers there as it faces growing competition. In December, Amazon announced a new "innovation center" in Shenzhen, a popular technology and manufacturing hub, and it also slashed the fees it charges merchants selling clothing priced below $20. Amazon said in 2023 the number of items sold by Chinese sellers on its site grew more than 20% year over year, while the number of Chinese merchants with sales upward of $10 million increased 30%.
Amazon surpasses $2 trillion stock market valuation for first time 2024-06-26 21:32:00+00:00 - Amazon fined nearly $6 million for alleged violations in Inland Empire warehouses Amazon fined nearly $6 million for alleged violations in Inland Empire warehouses 03:05 Amazon.com Inc. surpassed $2 trillion in market value for the first time in afternoon trading on Wednesday. The push higher for Amazon's stock market valuation comes a little more than a week after Nvidia hit $3 trillion and briefly became the most valuable company on Wall Street. Nvidia's chips are used to power many AI application and its valuation has soared as a result. Amazon has also been making big investments in AI as global interest has grown in the technology. Most of the company's focus has been on business-focused products, including AI models and a chatbot called Q, which Amazon makes available to businesses that use its cloud computing unit AWS. In April, Amazon CEO Andy Jassy said that AI capabilities have reaccelerated AWS' growth and that it was on pace for $100 billion in annual revenue. The unit had slowed down in growth last year as companies cut down on costs amid high inflation. The tech giant has also invested $4 billion in the San Francisco-based AI company Anthropic to develop so-called foundation models that underpin the generative AI systems. Amazon also makes and designs its own AI chips.
Federal Reserve says all 31 banks in annual stress test withstood a severe hypothetical downturn 2024-06-26 21:26:00+00:00 - Federal Reserve Board Vice Chair for Supervision Michael Barr testifies before a House Financial Services Committee hearing on the response to the bank failures of Silicon Valley Bank and Signature Bank, on Capitol Hill in Washington, D.C., on March 29, 2023. The Federal Reserve said Wednesday that the biggest banks operating in the U.S. would be able to withstand a severe recession scenario while maintaining their ability to lend to consumers and corporations. Each of the 31 banks in this year's regulatory exercise cleared the hurdle of being able to absorb losses while maintaining more than the minimum required capital levels, the Fed said in a statement. The stress test assumed that unemployment surges to 10%, commercial real estate values plunge 40% and housing prices fall 36%. "This year's results show that under our stress scenario, large banks would take nearly $685 billion in total hypothetical losses, yet still have considerably more capital than their minimum common equity requirements," said Michael Barr, the Fed's vice chair for supervision. "This is good news and underscores the usefulness of the extra capital that banks have built in recent years." The Fed's stress test is an annual ritual that forces banks to maintain adequate cushions for bad loans and dictates the size of share repurchases and dividends. This year's version included giants such as JPMorgan Chase and Goldman Sachs , credit card companies including American Express and regional lenders such as Truist . While no bank appeared to get badly tripped up by this year's exercise, which had roughly the same assumptions as the 2023 test, the group's aggregate capital levels fell 2.8 percentage points, which was worse than last year's decline. That is because the industry is holding more consumer credit card loans and more corporate bonds that have been downgraded. Lending margins have also been squeezed compared to last year, according to the Fed. "While banks are well-positioned to withstand the specific hypothetical recession we tested them against, the stress test also confirmed that there are some areas to watch," Barr said. "The financial system and its risks are always evolving, and we learned in the Great Recession the cost of failing to acknowledge shifting risks." The Fed also performed what it called an "exploratory analysis" of funding stresses and a trading meltdown that applied to only the eight biggest banks. In this exercise, the companies appeared to avoid disaster, despite a sudden surge in the cost of deposits combined with a recession. In a scenario where five large hedge funds implode, the big banks would lose between $70 billion and $85 billion. "The results demonstrated that these banks have material exposure to hedge funds but that they can withstand different types of trading book shocks," the Fed said. Banks are expected to begin announcing their latest share repurchase plans on Friday.