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Dow plunges nearly 1,000 points after report shows sharp drop in U.S. hiring 2024-08-02 22:35:00+00:00 - Financial adviser on stock market drop following spike in unemployment rate Financial adviser on stock market drop following spike in unemployment rate 07:48 Fear, long absent in financial markets as investors bet on a "soft landing" for the U.S. economy, is back in the air on Wall Street. Stocks tumbled Friday after new government data showed a steep decline in hiring in July, spurring concerns that economic activity is slowing faster than economists expected. The blue-chip Dow Jones Industrial Average plunged more than 980 points, or 2.4%, in early trade before paring its losses to close down 611 points, or 1.5%, at 39,737. The broader S&P 500 sank 1.8% on the day, while the Nasdaq Composite slid 2.4%, fueled by disappointing quarterly earnings from bellwethers such as Amazon, Intel and Tesla. That dropped the tech-heavy index into "correction" territory, or when stocks slide at least 10% from their previous high. Market analyst Adam Crisafulli of Vital Knowledge said the weak employment numbers will heighten fears the economy is losing steam. "This labor report fell short on pretty much every single metric," he said in a note to investors. Employers added only 114,000 jobs in July, while the U.S. jobless rate rose to 4.3%, the highest level since unemployment reached 4.5% in October of 2021, according to the Department of Labor. The payroll gains last month undershot analyst forecasts of 175,000 jobs. Too little, too late? Although stocks have hit record highs this year, propelled in part by excitement over artificial intelligence companies, investors have pulled back in recent weeks as signals piled up that economic activity was cooling. Such a slowdown is largely by design, with the Federal Reserve determined to extinguish inflation by keeping interest rates steady before easing back on the throttle. The central bank on Wednesday said it was leaving the federal funds rate — what banks charge each other for overnight loans — unchanged, although Chair Jerome Powell suggested that policy makers were teeing up a cut in September. But some analysts think the Fed has waited too long, raising the risk of a hard landing for the economy, or even a recession. "The Fed is seizing defeat from the jaws of victory," said Brian Jacobsen, chief economist at Annex Wealth Management. "Economic momentum has slowed so much that a rate cut in September will be too little and too late." Economists said signs that the job market is faltering makes it all but certain that the Fed will lower its benchmark rate in September in a move to ease borrowing costs and keep the economy from stalling. The central bank could cut by as much as 0.5 percentage points, or even look to dial back rates before its next policy meeting on September 17-18, according to investment advisory firm Capital Economics. Citing the weakening labor market, Goldman Sachs analysts are now penciling in three quarter-point cuts by year-end, starting in September. Economy remains solid Despite the downshift in hiring, some analysts noted that the overall economy remains strong, pointing to an ongoing decline in inflation, healthy consumer spending and solid wage growth. And while the nation's unemployment rate has risen to 4.3%, up from 3.7% in January, that is largely because more people are looking for work rather than a spike in layoffs. "People returning to the labor force is less threatening than layoffs, reducing the risk that a vicious cycle sets in of rising unemployment that leads to income loss that leads to more job losses," Ryan Sweet, chief U.S. economist at Oxford Economics, said in a research note. Until mid-July, U.S. stocks had enjoyed a run of more than 350 straight trading sessions without a drop of more than 2%, the longest stretch in 17 years, according to investment bank UBS. And while the S&P 500 is down roughly 6% from its peak in July, Sweet noted that drops in equity prices of 5% or more have occurred at least once a year for the past four decades. Market corrections, or a drop of at least 10%, occur an average of every one and half to two years, according to Oxford. "Equities selling off should be seen as a normal reaction, especially considering the high valuations in many pockets of the market," Lara Castleton, U.S. head of portfolio construction and strategy at Janus Henderson Investors, said of the July job numbers. "It's a good reminder for investors to focus on the earnings of companies going forward." —The Associated Press contributed to this report.

Mortgage rates tumble to lowest level since April 2023 after weak jobs report 2024-08-02 21:38:00+00:00 - Mortgage rates tumbled on Friday to their lowest since April 2023 after a weak jobs report sent bond yields sharply lower and boosted Wall Street's expectations for an interest rate cut from the Federal Reserve at its September meeting. The average rate for a 30-year fixed mortgage dropped 0.22 percentage points to 6.4%, according to Mortgage News Daily. That's the lowest average rate for the most commonly held home loan since April 2023, according to data from Freddie Mac. "The market is moving ahead of the Fed, bringing down longer-term rates including those for mortgages, which should lead to both more home purchases and a pickup in refinance activity," Mike Fratantoni, chief economist, with the Mortgage Bankers Association, said in a report. On Friday morning, the Labor Department reported that hiring abruptly slowed in July, with employers adding far fewer jobs than economists had expected, while the unemployment rate jumped to its highest point since late 2021. The significant miss sent stocks tumbling as well as yields on the 10-year U.S. Treasury, which mortgage rates closely follow. The sharp decline in mortgage rates could offer some relief to house hunters, as many have been priced out of the market given the double whammy of high borrowing costs and home prices that reached a record in June. Mortgage rates could fall even lower in the coming weeks, said NAR Chief Economist Lawrence Yun in a statement. Yun pointed to a 1 percentage-point decline in the 10-year bond yield, which dropped to 3.8% on Friday from 4.8% a few months ago. If mortgage rates fell by the same amount, borrowers would need $300 less for the monthly payment on a typical home loan, he said. "Homebuyers who were priced out a few months ago should re-check whether they can enter the homebuying market if they have secure jobs," he added. Meanwhile, economists are now suggesting the Federal Reserve may need to cut rates more deeply than had been expected given the slowing labor market. Some Wall Street economists on Friday predicted the Fed could cut its benchmark rate by 0.5 percentage points at its September meeting, compared with prior forecasts for a 0.25 percentage point cut. On Wednesday, the Fed held its benchmark interest rate steady, as expected, but Chair Jerome Powell signaled the central bank could begin cutting borrowing costs in September so long as inflation continues to abate. But he also flagged that Fed officials are closely watching the labor market for signs of weakness, which he said could indicate the need for cuts. Given the weaker-than-expected jobs numbers on Friday, Wall Street analysts are now predicting several additional rate cuts throughout 2024, as well as potentially deeper reductions than earlier forecast. "We now expect 25 bp cuts at each of the remaining three meetings this year and will be watching for signs that a larger 50 bp move could be on the cards, although that would be dependent on the economy and labour market weakening at a faster pace than we forecast," Capital Economics said in a Friday report.

Tesla lawyers ask Delaware judge to undo ruling against ginormous pay package for Musk 2024-08-02 20:11:00+00:00 - Attorneys for Elon Musk and Tesla's corporate directors are asking a Delaware judge to vacate her ruling requiring the company to rescind a massive and unprecedented pay package for Musk. Friday's hearing follows a January ruling in which Chancellor Kathaleen St. Jude McCormick concluded that Musk engineered the landmark 2018 pay package in sham negotiations with directors who were not independent. The compensation package initially carried a potential maximum value of about $56 billion, a sum that has fluctuated over the years but is now estimated to be worth more than $60 billion. Following the court ruling, Tesla shareholders met in June and ratified Musk's 2018 pay package for a second time, again by an overwhelming margin. Defense attorneys say the vote makes clear that Tesla shareholders, with full knowledge of the flaws in the 2018 process that McCormick pointed out in her January ruling, are adamant that Musk is entitled to the 11-figure pay package. "Honoring the shoulder vote would affirm the strength of our corporate system," David Ross, an attorney for Musk and the other individual defendants, told McCormick. "This was stockholder democracy working." Ross told the judge that the defendants were not challenging the factual findings or legal conclusions in her ruling, but simply asking that she vacate her order directing Tesla to rescind the pay package. McCormick, however, seemed skeptical of the defense arguments, peppering attorneys with questions and noting that there is no precedent in Delaware law for allowing a post-trial shareholder vote to ratify adjudicated breaches of fiduciary duty by corporate directors. "This has never been done before," she said. Defense attorneys argued that while they could find no case that is exactly comparable, Delaware law has long recognized shareholder ratification as a cure to corporate governance errors, and has long acknowledged the "sovereignty" of shareholders as the ultimate owners of a corporation. "I candidly don't see how Delaware law can tell the owners of the company that they're not entitled to make the decision they made," said Rudolf Koch, an attorney for Tesla. Donald Verrilli, a lawyer for an induvial stockholder who owns more than 19,000 Tesla shares, suggested that it would be wrong for the lone shareholder who filed the lawsuit to thwart the will of the majority of Tesla shareholders. At the time the lawsuit was filed, the plaintiff owned just nine shares of Tesla stock. "The voice of the majority of shareholders should matter…. This lawsuit is not representing the interest of the shareholders," Verrilli said. Thomas Grady, an attorney for a group of Florida objectors who own or manage almost 8 million Tesla shares with some $2 billion, argued that for McCormick to rule for the plaintiff, she has to "disenfranchise" all other Tesla shareholders. Attorneys for the plaintiff, who are seeking unprecedented legal fees in the form of Tesla stock valued at more than $5 billion, were to argue their case Friday afternoon.

Trump wants to cut income taxes on Social Security. Here's how that would impact your benefits. 2024-08-02 17:09:00+00:00 - Former President Donald Trump is promising to eliminate taxes on Social Security, a vow aimed squarely at the 67 million Americans who receive monthly benefit checks from the retirement and disability program. "Seniors should not pay taxes on Social Security and they won't," Trump said at a Wednesday campaign rally in Harrisburg, Pennsylvania. Such a pledge could be be a potent campaign plank at a time when poverty among seniors is on the rise, according to the National Council on Aging, and the U.S. Government Accountability Office has found millions of older workers are nearing retirement without a penny in savings. Currently, about 40% of Social Security recipients pay federal income taxes on their benefits, according to the agency. But cutting income taxes on Social Security income would ultimately harm the program by cutting off one of its funding sources – taxes — which in turn would likely hasten the insolvency of its trust funds, experts told CBS MoneyWatch. If that occurred, the Social Security Administration could be forced to make larger benefit cuts a year earlier than is now forecast. "It really is, in some ways, Trump advocating defunding Social Security," Nancy Altman, president of Social Security Works, an advocacy group for the program, told CBS MoneyWatch. "It's a sleight of hand — it's giving with one hand and taking with another." The Trump campaign didn't respond to a request for comment. Payroll taxes, the FICA taxes taken out of workers' paychecks, fund the bulk of Social Security. But about 4% of its financing stems from the income taxes that recipients pay on their benefits, according to the latest annual report from Social Security's board of trustees. While 4 in 5 Social Security recipients are senior citizens, the remaining beneficiaries are people who qualify for disability payments or are the children and spouses of deceased workers, according to the Center on Budget and Policy Priorities. Social Security's solvency problem Social Security's funding issues have been years in the making, partially due to changing U.S. demographics. With baby boomers retiring in record numbers and seniors living longer, the program is increasingly strained by growing financial demands. Because of that shift, Social Security is now paying out more in benefits than it receives in income, which is eating away at the $2.7 trillion in assets held in its trust funds — the reserves that pay out retirement and disability benefits. By 2033, the trust fund paying Social Security benefits is on track to be depleted, at which point the Social Security Administration would be forced to cut recipients' monthly benefits by 17%, according to the agency's latest report. Trump's proposal to nix income taxes on benefits would wipe out $950 billion in funding for Social Security over the next decade, according to a Wednesday estimate from the Committee for a Responsible Federal Budget (CRFB), a nonpartisan advocacy group focused on fiscal policy. That would have a twofold effect, pushing the program's insolvency date forward a year to 2032 and forcing the Social Security Administration to cut benefits even more deeply than it now predicts, the group said. Recipients would face a 25% cut in their monthly checks in 2032, the CRFB estimated. "Freeing them from taxation is a kind of benefit increase, but [the Social Security Administration] has to get the revenue from somewhere else or the benefits would just be cut," Altman of Social Security Works told CBS MoneyWatch. Are Social Security benefits taxable? There is a misperception among some Americans that Social Security benefits aren't taxable, perhaps reflecting that such income wasn't taxable until 1984. But under changes signed into law by President Ronald Reagan, Social Security income above a certain threshold became taxable. More seniors are subject to the tax each year because those thresholds haven't been adjusted for inflation since 1984, which means each year more middle-income beneficiaries are paying taxes on their Social Security checks. For instance, the share of seniors who paid taxes on their benefits was 26% in 1998, according to the Congressional Budget Office. That figure now stands at 40%. Individual tax filers with combined annual income (Social Security and other income, such as retirement distributions or dividends) ranging from $25,000 to $34,000 may have to pay income tax on up to half of their benefits. Individuals with earnings of more than $34,000 may pay taxes on up to 85% of their Social Security income. Joint filers with incomes between $32,000 and $44,000 may have to pay income tax on up to 50% of their benefits, while married couples with incomes over $44,000 may be taxed on up to 85% of their benefits. For instance, a single filer who collects the average annual Social Security benefit of $22,884, but whose total income is $50,000, would be taxed on 85% of their benefits, or $19,451. Only $3,433 of their Social Security income would be tax-free. Trump's tax promises It's not the first time Trump has made a promise on the campaign trail to lower taxes for specific groups of people. The former president pledged in June to end taxation on tips for service workers, a move that experts said would cost $250 billion over 10 years. Many seniors might like the idea of eliminating taxes on their benefit checks, Altman noted. Many older Americans feel like they're losing ground after years of high inflation, despite the annual cost-of-living adjustment that's applied to Social Security checks, she said. Trump's Social Security proposal could be designed to appeal to seniors who were put off by a proposal from the Republican Study Committee, a group of conservatives in the House, to raise the retirement age to 70 for both Social Security and Medicare, Altman added. Currently, the full retirement age for Social Security is 67, while seniors can qualify for Medicare at 65. "They were really targeting Social Security, and seniors took notice," Altman said. Trump "is throwing things out to try to win voters." If Trump were elected, it's unclear whether his proposals to eliminate taxes on tips or Social Security benefits would come to fruition. For one, lawmakers would need to pass legislation to change the tax code, which could be a hurdle if either the House or Senate were to be controlled by Democrats under a second Trump administration. Meanwhile, Trump hasn't yet released detailed plans for his tax proposals, unlike at this point in the 2016 race, according to Paul Ashworth, chief North America economist at Capital Economics. "Although Trump occasionally talks about eliminating the taxes on tips or lowering the corporate tax rate a little more, these are throwaway lines in his stump speech rather than firm costed proposals," Ashworth wrote in a report this week. "At this point in the 2016 election race, Trump had a (relatively) detailed plan to cut taxes by a massive $7 trillion over the following decade."

Should You Invest in Bitcoin? Pros and Cons 2024-08-02 16:30:00+00:00 - Finance and the financial services sector are constantly evolving, with new investment opportunities emerging regularly. One of the most notable examples of this is Bitcoin (BTC), a digital currency that operates independently of central banks and governments. Founded on the principles of blockchain technology, Bitcoin has captured investors’ attention, sparking debates about its potential as a viable investment option. While the allure of high returns has drawn many to Bitcoin, understanding its complexity, inherent volatility, and potential risks is crucial for investors seeking to make informed decisions. Get earnings alerts: Sign Up What Is Bitcoin? Unlike traditional currencies, Bitcoin is a decentralized digital currency not controlled by any single entity, making it resistant to government interference or manipulation. This decentralized nature has contributed to Bitcoin's popularity, as users value its potential for greater financial freedom and privacy. Bitcoin transactions are recorded on a public distributed ledger known as the blockchain, which allows for transparency and immutability. Each transaction is verified and added to the blockchain through a process called "mining," where computers solve complex mathematical problems to secure the network and validate transactions. This process consumes significant computing power and energy, which has become a subject of environmental concern for the currency. Since its inception in 2009, Bitcoin has experienced a remarkable rise in popularity, becoming a global phenomenon. Its value has fluctuated significantly, witnessing periods of explosive growth and sudden corrections. This volatility has attracted investors seeking high returns and those apprehensive of its potential for substantial losses. Ad Porter & Company Elon to Transform U.S. Economy? Donald Trump has a 63% shot at winning the 2024 election, according to Polymarket. If that happens, Trump could fill a position in his cabinet with the richest and most powerful man on earth, Elon Musk. Click here now to watch this new exposé that covers it all. What Are the Pros of Investing in Bitcoin? Historically, Bitcoin has delivered substantial returns to early adopters, experiencing a significant increase in price since its inception, making it attractive for investors. Let’s take a look at some other reasons investors are incorporating this digital currency into their portfolios: Limited Supply : Only 21 million Bitcoins will be created, making it a scarce asset. This scarcity can increase its value over time, particularly if demand increases. : Only 21 million Bitcoins will be created, making it a scarce asset. This scarcity can increase its value over time, particularly if demand increases. Increasing Utility : Many merchants and companies now accept Bitcoin as a payment form, expanding its use beyond speculation and enhancing its legitimacy as a value holder. : Many merchants and companies now accept Bitcoin as a payment form, expanding its use beyond speculation and enhancing its legitimacy as a value holder. Inflation Hedge : Bitcoin's decentralized nature means it is not subject to the same inflationary pressures as traditional fiat currencies, potentially preserving purchasing power during economic uncertainty. However, Bitcoin's effectiveness as an inflation hedge remains debatable, as external factors and market sentiment still influence its price. : Bitcoin's decentralized nature means it is not subject to the same inflationary pressures as traditional fiat currencies, potentially preserving purchasing power during economic uncertainty. However, Bitcoin's effectiveness as an inflation hedge remains debatable, as external factors and still influence its price. Transparency and Security : Bitcoin operates without a central authority, offering investors security and autonomy. Its transactions are recorded on a transparent, public ledger (blockchain), which enhances accountability and helps build trust in the system. : Bitcoin operates without a central authority, offering investors security and autonomy. Its transactions are recorded on a transparent, public ledger (blockchain), which enhances accountability and helps build trust in the system. Global Accessibility: Bitcoin is accessible to anyone with an internet connection, regardless of location or financial background, allowing for global participation. What Are the Cons of Investing in Bitcoin? While there are many advantages of investing in Bitcoin, it is critical to understand the inherent volatility and risks associated with the digital currency and cryptocurrency market. Price Volatility : Bitcoin's price is subject to significant and rapid fluctuations, creating a high-risk environment for investors seeking stability. These fluctuations are amplified by the cryptocurrency market's lack of regulatory oversight, making it susceptible to fraud, manipulation, and price bubbles. : Bitcoin's price is subject to significant and rapid fluctuations, creating a for investors seeking stability. These fluctuations are amplified by the market's lack of regulatory oversight, making it susceptible to fraud, manipulation, and price bubbles. Lack of Regulatory Oversight : The absence of regulation creates a situation where market sentiment and speculative activity can drive price movements, potentially leading to rapid price increases (bubbles) followed by equally swift declines. This dynamic underscores the inherent risk of significant losses in Bitcoin investments. : The absence of regulation creates a situation where market sentiment and speculative activity can drive price movements, potentially leading to rapid price increases (bubbles) followed by equally swift declines. This dynamic underscores the inherent risk of significant losses in Bitcoin investments. Market Sentiment and Speculation : The absence of regulation allows market sentiment and speculative activity to drive price movements, leading to rapid price increases (bubbles) and swift declines, exposing investors to significant losses. : The absence of regulation allows market sentiment and speculative activity to drive price movements, leading to rapid price increases (bubbles) and swift declines, exposing investors to significant losses. Security Concerns : Digital wallets, which store, manage, and transact Bitcoin, are vulnerable to hacking and fraudulent activity. The loss of a private key, a unique code used to access a digital wallet, can result in the loss of all associated Bitcoin. : Digital wallets, which store, manage, and transact Bitcoin, are vulnerable to hacking and fraudulent activity. The loss of a private key, a unique code used to access a digital wallet, can result in the loss of all associated Bitcoin. Complexity of Storage and Security : Understanding the different types of digital wallets (hardware, software, online) and the intricacies of private key management and security protocols can be overwhelming for those unfamiliar with cryptocurrency technology . : Understanding the different types of digital wallets (hardware, software, online) and the intricacies of private key management and security protocols can be overwhelming for those unfamiliar with . Lack of Consumer Protection : Unlike traditional financial instruments, Bitcoin transactions are generally irreversible, making unauthorized transactions or scams difficult to reverse or recover. : Unlike traditional financial instruments, Bitcoin transactions are generally irreversible, making unauthorized transactions or scams difficult to reverse or recover. Environmental Concerns: Bitcoin mining is energy-intensive, contributing to greenhouse gas emissions and raising concerns about Bitcoin's operation's sustainability and environmental impact. How to Invest in Bitcoin? Investing in Bitcoin requires a systematic approach, encompassing several critical steps to ensure security and effective investment management. 1. Acquire a Digital Wallet A digital wallet is a software application that facilitates Bitcoin storage, transmission, and receipt. Several wallet types exist, each with its security features and functionalities, and selecting a wallet that aligns with your security preferences and risk tolerance is crucial. Hardware Wallets : Physical devices that store your Bitcoin offline, making them highly secure against online threats. : Physical devices that store your Bitcoin offline, making them highly secure against online threats. Software Wallets : Applications stored on a computer or mobile device. : Applications stored on a computer or mobile device. Online Wallets: Accessible via the internet. 2. Purchase Bitcoin through a Cryptocurrency Exchange Once a digital wallet is established, you can purchase Bitcoin through a cryptocurrency exchange, a platform that acts as a marketplace for buying, selling, and trading cryptocurrencies. Numerous exchanges operate in the market, each with varying fees, security features, and available cryptocurrencies. Choosing a reputable exchange with strong security measures is paramount to protecting your funds and ensuring a secure trading experience. Before choosing a platform, it is essential to conduct careful due diligence on the exchange's security protocols, regulatory compliance, and user reviews. 3. Determine Your Investment Strategy Following the acquisition of Bitcoin, you must determine their preferred investment strategy. Two common approaches are buying and holding or active trading. Buying and Holding : Purchase and hold Bitcoin long-term, expecting its value to appreciate over time. This strategy is suitable for long-term investment goals and lower risk tolerance. : Purchase and hold Bitcoin long-term, expecting its value to appreciate over time. This strategy is suitable for long-term investment goals and lower risk tolerance. Active Trading: Buy and sell Bitcoin frequently to capitalize on short-term price fluctuations. This strategy requires a higher risk tolerance and a deeper understanding of market dynamics. Ultimately, the choice of Bitcoin investment strategy should be aligned with your risk tolerance, financial goals, and time horizon. 4. Consider Investment Timing Market sentiment, economic conditions, and technological developments influence Bitcoin's price. Monitoring market trends, financial data, and industry news is crucial to making informed entry and exit point decisions. Investing in Bitcoin: A Balanced Perspective Investing in Bitcoin requires carefully assessing both potential benefits and inherent risks. This is particularly true for emerging markets like cryptocurrencies, which often exhibit high volatility and lack regulatory oversight. While the prospect of high returns may be attractive, it is essential to approach such investments with a balanced perspective. Ultimately, you must prioritize informed decision-making. Careful research, a thorough understanding of risks and potential rewards, and consultation with qualified financial advisors are essential for navigating the complexities of emerging markets. By embracing a balanced perspective and prioritizing responsible investment practices, individuals can make informed choices that align with their financial goals and risk tolerance. Make Informed Decisions with MarketBeat The cryptocurrency market, specifically Bitcoin, presents opportunities and challenges. To stay ahead of the curve, you need access to reliable information and insights to help you make informed decisions. MarketBeat's tools and resources include data and analysis that enable you to track price movements and expert commentary, research reports, and insights from industry leaders. Visit MarketBeat today to explore the features and discover how they can empower your investment journey.

Amazon Stock is Primed to Rebound Strongly After AI Bubble Bursts 2024-08-02 14:11:00+00:00 - An AI-inflated bubble is bursting in the market, and Amazon NASDAQ: AMZN is not immune, but don’t take this as an end to the rally. A bubble is bursting, but this is not the last vestige of an old and tired market we’re discussing. Instead, it is the frothy front edge of a wave that has yet to crash. One AI bubble is bursting, but there will be more as the tide of AI rolls onward, and it will take Amazon with it. As tepid as the results and guidance may be, tepidness is in the eye of the beholder; there is nothing wrong with them other than failing to meet highly inflated expectations. Because Amazon is growing and showing strength in all segments, and AI is still a growing force in the tech economy, investors should expect this stock to rebound from these lows and do it strongly. Get Amazon.com alerts: Sign Up Analysts Give Mixed Response to Amazon News, Forecast 30% Upside The analysts' response to Amazon’s Q2 release is mixed but does nothing to alter the outlook for higher share prices. Although more analysts lowered their targets than not, conviction is firming that a new all-time high will be set. The takeaway from the price target adjustments is that the range of targets is narrowing around the $210 to $220 levels, aligning with the pre-release consensus estimate, showing a firming belief this stock could advance 30% or more from the post-release lows. Moving to the new all-time high is also a significant technical move and could lead to increased momentum and a move above $230 by the end of the year. Amazon is Firing on All Cylinders: Overeager Analysts Wanted More Amazon is firing on all cylinders despite tepid performance relative to its consensus estimates. The company reported $148 billion in net revenue, missing the consensus by a slim 50 basis points but up 10.2% compared to last year. Strength was seen in the 9% gain in North America, Amazon’s largest segment, and in the 7% International growth (10% on an FX-neutral basis), but the real story is in AWS. AWS saw a 19% growth due to heightened demand for AI services and infrastructure, boosting its share of total revenue to 17.7%, an increase of 130 basis points. Amazon.com MarketRank™ Stock Analysis Overall MarketRank™ 4.94 out of 5 Analyst Rating Buy Upside/Downside 32.6% Upside Short Interest Healthy Dividend Strength N/A Sustainability -1.25 News Sentiment 0.34 Insider Trading Selling Shares Projected Earnings Growth 22.83% See Full Details Among the critical details is the margin. The margin widened significantly due to CEO Andrew Jassy and the team’s efforts, improving profitability across all segments. Operating margin grew by 91% on a 90% increase in North American margin, profitability in the International segment, and a 72% gain at AWS. The investment in RIVN positively impacted the results but was negligible and in the low single-digit range. What this means for the cash flow is a 75% increase and triple-digit gains for the free cash flow. The detail that undercut the market is the guidance, which is solid but short of expectations. The company forecasted revenue in a range bracketing the consensus with consensus at the range’s high end, still an 8% to 11% gain versus last year. The guidance is likely cautious, assuming that AI spending continues to build momentum across the stack. Amazon Falls To Super-Critical Support Level The price action in AMZN shares is bearish following the release, pushing the stock down to a super-critical support target. That target is near the $165-$170 range, a pivotal price point for the last four years. It capped gains in 2020, 2021, and 2022 and was a critical pivot point in 2023, later retested for support in 2024. Now, the market is back, retesting support at that level again, and it is likely to be confirmed. In that scenario, it is only a matter of time until new highs are set. If not, shares of AMZN could fall to $160 or lower before finding firm support. 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

Coinbase posts third consecutive quarterly profit despite crypto price retreat 2024-08-02 05:38:00+00:00 - Coinbase Global (COIN) eked out its third consecutive quarterly profit even as crypto prices retreated during the second quarter. Net income rose to $36 million, compared with a net loss of $97 million a year ago. Net revenue more than doubled to $1.4 billion. Analysts expected slightly higher revenue and more sizable profits. Coinbase’s stock rose in after-hours trading after falling more than 5% Thursday. Since the start of 2024 the stock of the largest US cryptocurrency exchange is up more than 20%. Coinbase's results were once again affected by a fairly new accounting change that requires it to value its crypto holdings based on end-of-period prices. That worked in its favor during the first quarter when Coinbase recorded a $737 million pretax gain as prices surged. Bitcoin (BTC-USD) hit a record high near $74,000, largely due to excitement surrounding the launch of a series of new bitcoin ETFs. But in the second quarter, as the price of bitcoin fell 12%, Coinbase took a $319 million impairment on the value of its digital asset holdings. Its crypto trading volume also pulled back. In turn, Coinbase's profits and net revenue fell a respective 97% and 13% from the previous quarter. MicroStrategy (MSTR), the world’s largest publicly traded holder of bitcoin, also wrote down the value of its crypto holdings for the second quarter, with an impairment of $180 million and a net loss of $102 million. Its stock was down more than 6% Thursday and continued to sell off in after-market trading. It's still up more than 130% year to date. Coinbase did have plenty of bright spots in the second quarter. It posted better-than-expected revenue on transaction fees, subscriptions, and services business lines. Transaction fees of $781 million rose 139% from a year ago. Subscriptions and services revenue was $599 million, 78.6% higher than last year. Coinbase also said it expects third quarter subscription and services revenue to be within a range of $530 million-$600 million. Brian Armstrong, CEO of Coinbase, at a "Stand With Crypto" rally in March in Los Angeles. (Jason Armond / Los Angeles Times via Getty Images) (Jason Armond via Getty Images) Its custodial fees, which it earns partly from partnerships with some of the new bitcoin ETFs, also rose by 7% from the first quarter and doubled from the year-ago period to $34.5 million. It could earn more from a new series of ETFs that hold the world's second-largest cryptocurrency, Ether (ETH-USD), which just launched last week. "Execution is really strong over here at Coinbase," Coinbase CFO Alesia Haas told Yahoo Finance in an interview. "We're really pleased with our results despite the continued volatility of crypto and the ebbing and flowing market that we always find ourselves in." Story continues Coinbase still has some regulatory troubles it needs to solve despite making some progress. The firm's biggest headache is a 2023 lawsuit from the Securities and Exchange Commission alleging the company violated US federal securities laws. Coinbase and its CEO, Brian Armstrong, are fighting those allegations. The critical case could take years to play out. The company is also trying to influence how the US regulates crypto by helping to amass a lobbying war chest during a critical election year. Fairshake, the crypto industry's largest super-PAC, currently has raised $203 million, according to data tracked by Open Secrets. That is more than any other super-PAC. And 93% of that money hasn’t yet been spent, meaning its impact could be deeply felt in the months ahead. "Crypto legislation has become a mainstream issue in the US, garnering bipartisan support, and there is real energy within both the House and the Senate to pass meaningful legislation," the company said in a release. The company also said it would "continue to invest in policy initiatives throughout the 2024 election cycle to help elect pro-crypto candidates." David Hollerith is a senior reporter for Yahoo Finance covering banking, crypto, and other areas in finance. Click here for the latest crypto news, updates, and more related to ethereum and bitcoin prices, crypto ETFs, and market implications for cryptocurrencies Read the latest financial and business news from Yahoo Finance

Wall Street 'fear gauge' jumps to three-month high as stocks resume slide 2024-08-02 05:25:00+00:00 - NEW YORK (Reuters) - Wall Street's most watched gauge of investor anxiety jumped to a more than three-month high on Thursday as U.S. stocks fell sharply after a round of data on Thursday spurred concerns the economy may be slowing faster than anticipated. The Cboe Volatility Index hit 19.48, its highest since April 19, before paring gains to finish at 18.59. The jump came as the S&P 500 fell nearly 1.4%. A 2.3% drop in the tech-heavy Nasdaq Composite Index, meanwhile, brought it within two percentage points of a 10% decline from a record high reached last month. The options-based VIX index, which has been largely subdued with an average reading of 13.96 so far this year, has perked up in recent weeks as investors have grown increasingly apprehensive about the outlook for corporate earnings and economic growth. The concerns, which have pulled the S&P 500 Index down about 4% from its July 16 record closing high of 5,667.2, have also spurred a jump in trading in VIX options. The index is up 14% year-to-date. On Thursday, some 1.5 million VIX options contracts changed hands, nearly twice the average daily volume for the options, according to Trade Alert data. Thursday's jump brought the index closer to its long-term average of 19.5. Meanwhile, the VVIX index - a gauge of expected swings in the fear index - closed up 16.93 points at 111.18, signaling investors expect sharp near-term swings in the VIX. (Reporting by Saqib Iqbal Ahmed; Editing by Marguerita Choy and Stephen Coates)

Intel Says Sales Will Fall Short of Expectations, Cuts Jobs 2024-08-02 05:00:00+00:00 - (Bloomberg) -- Intel Corp. said third-quarter revenue will disappoint and announced more than 15,000 job cuts, after the company lost business to rivals better equipped for the artificial intelligence boom. Shares fell more than 18% in late trading. Most Read from Bloomberg Sales for the current quarter will be $12.5 billion to $13.5 billion, the company said Thursday. Analysts had projected $14.38 billion on average, according to data compiled by Bloomberg. Intel will have a loss of 3 cents a share, excluding certain items, versus expectations for a profit 30 cents. Intel said it plans to cut more than 15% of its workforce of around 110,000 people. It’s also suspending dividend payments to shareholders starting in the fourth quarter, and will continue that until “cash flows improve to sustainably higher levels,” according to the statement. The company has paid a dividend since 1992. “I have no illusions that the path in front of us will be easy,” Chief Executive Officer Pat Gelsinger said in a memo to employees. “You shouldn’t either.” He called the moves “some of the most consequential changes in our company’s history.” Gelsinger, despite a massive spending plan to restore Intel to industry prominence, is struggling to improve the company’s products and technology fast enough to retain customers. The results underscore a dramatic decline for Intel, which dominated the semiconductor industry for decades and is now forced to tout cost cutting measures and give reassurances that it can fund growth plans. “Revenue is not where we want it to be,” said Chief Financial Officer Dave Zinsner in an interview. “Financials weren’t where we want them to be.” The job cuts were needed “to get us to a place where we have a more sustainable model for the business going forward.” In the second quarter, the company had a profit of 2 cents a share, excluding certain items, and revenue of $12.8 billion, down 1%. Analysts had estimated a profit of 10 cents a share and sales of $12.95 billion. Wall Street is projecting a modest increase in overall sales this year from 2024, still leaving the company more than $20 billion below its peak in 2021. Competitors who specialize in artificial intelligence are winning over some of Intel’s customers. Nvidia Corp. now has more than twice its former nemesis’ quarterly sales. Long-time also-ran Advanced Micro Devices Inc. is valued more than $100 billion higher by investors and Taiwan Semiconductor Manufacturing Co. is widely recognized as having the industry’s best production. Story continues Gelsinger remains confident that Intel is on the right track in the long run. He’s argued that Intel’s vital manufacturing is on course to catch and pass those of rivals and that’ll attract outside customers, and justify the string of new plants Intel is building. The company is reducing its spending on new plants and equipment in 2024 by more than 20%, and is now budgeting between $25 billion and $27 billion. Next year, expenses will range between $20 billion and $23 billion. Intel shares fell in extended trading following the announcement, after closing at $29.05 in New York The company has slipped more than 42% so far this year. It’s the second-worst performer on the Philadelphia Stock Exchange Semiconductor Index this year. Most of the job reductions, needed also to remove bureaucracy and speed up decision making, will be completed by the end of the year, Gelsinger told staff. “Our costs are too high, our margins are too low,” he wrote, saying he would take employee questions at an internal meeting. “We need bolder actions to address both — particularly given our financial results and outlook for the second half of 2024, which is tougher than previously expected.” Intel was forced to reduce its sales expectations in May after the US government revoked its license to supply chips to China’s Huawei Technologies Co., part of Washington’s push to cut off that company for what it alleges are national security risks. The chipmaker is reporting earnings for the second time under a new business structure that shows the financial performance of its manufacturing operations. Gelsinger has said the restructuring was a necessary step to make operations more efficient and competitive. The company reports revenues divided between product groups and its manufacturing operations, with factories undergoing a massive upgrade and build-out program that’s weighing heavily on profits. Revenue is improving at what it calls its Foundry unit, gaining 4% from a year earlier to $4.32 billion. PC chips also posted growth, up 9% from the same period a year earlier. Sales at the crucial data center unit, once the most profitable, again lost ground, declining 3% to $3 billion. That unit hasn’t yet achieved anything like the market presence of Nvidia in accelerator chips used in artificial intelligence systems. AI is proving a gold mine, and cutting into spending on the type of processor Intel makes. (Updates with Gelsinger memo in the fourth paragraph) Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.

Intel to lay off more than 15% of its workforce as it cuts costs to try to turn its business around 2024-08-02 04:36:00+00:00 - Chipmaker Intel Corp. is cutting 15% of its massive workforce — about 15,000 jobs — as it tries to turn its business around to compete with more successful rivals like Nvidia and AMD. In a memo to staff, Intel CEO Pat Gelsinger said Thursday the company plans to save $10 billion in 2025. “Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate,” he wrote in the memo published to Intel’s website. “Our revenues have not grown as expected – and we’ve yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low.” The job cuts come in the heels of a disappointing quarter and forecast for the iconic chip maker founded in 1968 at the start of the PC revolution. Next week, Gelsinger wrote, Intel will announce an “enhanced retirement offering” for eligible employees and offer an application program for voluntary departures. Intel had 124,800 employees as of the end of 2023 according to a regulatory filing. “These decisions have challenged me to my core, and this is the hardest thing I’ve done in my career,” he said. The bulk of the layoffs are expected to be completed this year. The Santa Clara, California-based company is also suspending its stock dividend as part of a broader plan to cut costs. Intel reported a loss for its second quarter along with a small revenue decline, and it forecast third-quarter revenues below Wall Street's expectations. The company posted a loss of $1.6 billion, or 38 cents per share, in the April-June period. That's down from a profit of $1.5 billion, or 35 cents per share, a year earlier. Adjusted earnings excluding special items were 2 cents per share. Revenue slid 1% to $12.8 billion from $12.9 billion. Analysts, on average, were expecting earnings of 10 cents per share on revenue of $12.9 billion, according to a poll by FactSet. “Intel’s announcement of a significant cost-cutting plan including layoffs may bolster its near-term financials, but this move alone is insufficient to redefine its position in the evolving chip market," said eMarketer analyst Jacob Bourne. “The company faces a critical juncture as it leverages U.S. investment in domestic manufacturing and the surging global demand for AI chips to establish itself in chip fabrication.” In March, President Joe Biden celebrated an agreement to provide Intel with up to $8.5 billion in direct funding and $11 billion in loans for computer chip plants around the country, talking up the investment in the political battleground state of Arizona and calling it a way of “bringing the future back to America.” Story continues In September 2022, Biden praised Intel as a job creator with its plans to open a new plant near Columbus, Ohio. The president praised them for plans to “build a workforce of the future” for the $20 billion project, which he said would generate 7,000 construction jobs and 3,000 full-time jobs set to pay an average of $135,000 a year. Shares plunged 18% to $23.82 in after-hours trading — Associated Press Writer Josh Boak contributed from Washington.

Intel stock sinking on Q2 miss, $10B cost cutting plan 2024-08-02 04:29:00+00:00 - Intel (INTC) shares sink in extended hours after missing second quarter earnings estimates. The semiconductor manufacturer posted $12.83 billion in revenue ($12.95 billion expected) and adjusted earnings of $0.02 per share (expected $0.10 per share). The chip company is also announcing a $10 billion cost-cutting initiative while laying off 15,000 employees. Yahoo Finance senior reporter Akiko Fujita crunches the numbers on Intel's earnings figures and what Wall Street was expecting from its AI and chip foundry businesses. For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Luke Carberry Mogan.

Stocks making the biggest moves after hours: Apple, Amazon, Intel, Snap and more 2024-08-01 22:13:00+00:00 - Customers are trying on and learning about Apple Vision Pro headsets at an Apple store in Shanghai, China, on July 22, 2024. Check out the companies making headlines in extended trading: Intel — The chip stock sank 17%. Intel said it would suspend its dividend in the fiscal fourth quarter, and it announced plans to lay off 15% of its workforce. The news coincided with worse-than-expected quarterly results. Intel also shared disappointing guidance for the current quarter. Amazon — Shares of the e-commerce giant dropped 5% in extended trading. The company reported weaker-than-expected revenue for the second quarter and issued a disappointing forecast for the third quarter. Revenue in its cloud division increased 19% in the second quarter, beating analysts' estimates, however. Apple — Shares of the iPhone maker inched higher, as the company beat analysts' estimates on the top and bottom lines. Apple reported fiscal third-quarter earnings of $1.40 per share while analysts polled by LSEG called for $1.35 per share. Revenue clocked in at $85.78 billion, also surpassing the Street's estimates. DoorDash — Shares surged nearly 14% after the online food ordering company reported a revenue beat in the second quarter. DoorDash posted $2.63 billion in revenue while analysts polled by LSEG had estimated $2.54 billion. Management also raised the marketplace gross order value forecast for the third quarter. Coinbase — The crypto exchange operator saw its shares rise nearly 5% in extended trading. In the second quarter, revenue came in at $1.45 billion, slightly above estimates of $1.40 billion, according to LSEG. Block — The fintech company rallied more than 7% on better-than-expected adjusted earnings in the second quarter. Block reported adjusted earnings of 93 cents per share, coming above consensus calls for 84 cents per share, according to analysts surveyed by LSEG. Meanwhile, revenue of $6.16 billion missed analysts' estimates for $6.28 billion. Snap — The parent of the instant messaging app cratered 17%. Snap called for third-quarter adjusted earnings to range between $70 million and $100 million, falling short of the $110 million estimate from analysts polled by StreetAccount. Revenue for the latest quarter missed the Street's forecasts. Roku — Shares jumped more than 5% after Roku posted second-quarter results that exceeded expectations. The streaming device company posted a narrower-than-expected quarterly loss of 24 cents per share, better than the loss of 43 cents per share anticipated by analysts polled by LSEG. Revenue of $968 million topped the $938 million consensus estimate. Clorox — The stock advanced 4%. Clorox issued fiscal full-year earnings guidance in a range between $6.55 and $6.80 per share, coming above analysts' estimates of $6.45 in earnings per share, according to analysts polled by LSEG. Fiscal fourth-quarter adjusted earnings came in at $1.82 per share, while consensus estimates called for $1.56 per share. Coterra Energy — Shares dipped 1.8% after Coterra Energy posted disappointing earnings results. Coterra reported adjusted second-quarter earnings of 37 cents per share, below the FactSet consensus estimate of 39 cents in earnings per share. GoDaddy — Shares jumped 6% after the web hosting company raised its revenue guidance for the full year. GoDaddy issued full-year revenue guidance between $4.525 billion and $4.565 billion, while analysts polled by FactSet had expected $4.53 billion. — CNBC's Sarah Min, Yun Li, Samantha Subin, Tanaya Macheel and Darla Mercado contributed reporting.

Snap Stock Sinks On Q2 Earnings: Revenue Miss, EPS In Line, DAUs Up 9% And More - Snap (NYSE:SNAP) 2024-08-01 21:58:00+00:00 - Snap Inc SNAP reported second-quarter financial results after the market close on Thursday. Here’s a look at the key metrics from the quarter. Q2 Earnings: Snap said second-quarter revenue increased 16% year-over-year to $1.24 billion, missing the consensus estimate of $1.25 billion, according to Benzinga Pro. The social media company reported quarterly earnings of 2 cents per share, in line with analyst estimates. Daily active users grew 9% year-over-year to 432 million. Monthly active users climbed to 850 million in the quarter. Operating cash flow came in at negative $21 million and free cash flow was negative $73 million in the quarter. The company ended the quarter with $1.06 billion in cash and cash equivalents. “Our community grew to reach more than 850 million monthly active users in Q2, with more than 11 million Snapchat+ subscribers,” said Evan Spiegel, CEO of Snap. “We continued to scale our advertising platform with active advertisers more than doubling year-over-year. We are looking forward to hosting our upcoming Snap Partner Summit on September 17th, where we will announce new updates to our service.” Outlook: Snap sees third-quarter revenue in the range of $1.335 billion to $1.375 billion, representing year-over-year revenue growth of 12% to 16%. The company anticipates third-quarter adjusted EBITDA of $70 million to $100 million. Snap noted that its guidance assumes daily active users will be approximately 441 million in the third quarter. Management will hold a conference call to discuss these results at 5:30 p.m. ET. See Also: US Stocks Tumble On Economic, Geopolitical Concerns; Small Caps, Chipmakers Sink; Meta Rallies: What’s Driving Markets Thursday? SNAP Price Action: Snap shares were down 17.64% after hours at $10.55 at the time of publication Thursday, according to Benzinga Pro. Photo: Diego Thomazini/Shutterstock.

New Child Safety Laws Could Transform Gaming Industry Regulations - Meta Platforms (NASDAQ:META) 2024-08-01 21:56:00+00:00 - The U.S. Senate passed the Kids Online Safety Act (KOSA) on Wednesday along with the Children and Teens’ Online Privacy Protection Act (COPPA 2.0). As per GamesIndustry.biz, these bills — approved in a bipartisan 91-3 vote — aim to introduce stricter regulations for tech companies, with far-reaching implications for gaming platforms. A New Era Of Online Safety The Kids Online Safety Act (KOSA) seeks to establish a “duty of care” for tech companies regarding children using their platforms. See Also: Roblox Reports 13,000 Child Exploitation Cases In 2023, Details Safety Measures This legislative effort mandates stronger protections against cyberbullying, sexual exploitation, and other online harms. KOSA would also enforce stricter age verification processes to prevent minors from accessing age-inappropriate content. “By ensuring that tech companies are held accountable, KOSA is a crucial step in making the digital world safer for our children,” said Senator Richard Blumenthal, a key advocate for the bill. COPPA 2.0: Strengthening Privacy Protections Building upon the 1998 Children’s Online Privacy Protection Act (COPPA), COPPA 2.0 introduces several pivotal changes aimed at enhancing privacy protections for minors. The bill prohibits targeted advertising toward minors and restricts the collection of their data without explicit consent. Additionally, it grants parents and children the right to request the deletion of personal information from online platforms. “With COPPA 2.0, we are empowering parents and protecting the privacy of our children in the digital age,” stated Senator Ed Markey, another principal supporter. The Road Ahead While the Senate’s approval marks a major milestone, both KOSA and COPPA 2.0 now face the challenge of passing through the House of Representatives. The House has entered its August recess early, delaying further action until it reconvenes on September 9. The passage of these bills in the House could herald the first substantial legislative efforts to protect children online in two decades. Their approval would not only reshape the regulatory landscape for tech companies but also set a precedent for future online safety and privacy initiatives. Read Next: Image credits: Shutterstock.

Stocks dive as investors fret over signs of U.S. economic slowdown 2024-08-01 21:56:00+00:00 - Stocks tumbled after fresh economic signals raised concerns about the outlook for U.S. growth. The Department of Labor on Thursday released data showing that initial claims for unemployment benefits rose to 249,000 last week, topping analyst forecasts and reaching the highest level since August of 2023. Although layoffs around the country remain modest, some investors worry that the recent jump in jobless claims could be a prelude to a sharper drop in payrolls later this year. New purchasing managers data also shows that manufacturers are weakening as they grapple with higher interest rates, while a growing number of companies reporting corporate earnings are pointing to softer consumer spending. "The economy is in pretty good shape in 2024, but it does have weak spots," Bill Adams, chief economist for Comerica Bank, said in an email. "High interest rates are a major headwind for industries that use a lot of credit, like manufacturing, property development, and retailers of big-ticket items like furniture and cars." The S&P 500 tumbled 76 points, or 1.3%, to 5,447, while the Dow Jones Industrial Average tumbled roughly 1.2%. The tech-heavy Nasdaq Composite was down even more sharply, sliding 2.3%. Did the Fed wait too long? Financial markets have steadily risen this year, propelled by ongoing enthusiasm for artificial intelligence companies and expectations that the Federal Reserve would soon lower its benchmark interest rate amid a cooldown in inflation. But some Wall Street analysts and economists fret the Fed could be behind the curve in lowering borrowing costs, raising the risk of a hard economic landing. The Fed this week opted to hold rates steady, with Chair Jerome Powell only willing to say that the time to ease monetary policy "is approaching." "Markets are thinking maybe the Federal Reserve should have cut yesterday," said Jamie Cox, managing partner for Harris Financial Group. Most forecasters expect the central bank to announce its first rate cut in four years when policy makers meet September 17-18. Compounding the unease on Wall Street are mounting fears about spiraling hostility in the Middle East. Global oil prices edged up this week after the assassination of Hamas political leader Ismail Haniyeh, which raised concerns about potential retaliation by Iran or its proxies. "The economy and overall the consumer is stretched, and we just don't have a lot of wiggle room to react in an appropriate way if any geopolitical or any other unexpected risks materialize," said Jeff Klingelhofer, portfolio manager at Thornburg Investment Management. Despite investors' recent caution, data shows the economy remains on solid ground. Gross domestic product — the total output of goods and services — grew at an annual rate of 2.8% between April and June, topping the 1.4% pace of growth in the first quarter and surpassing analyst forecasts. Another key gauge of the nation's economic health will come Friday, when the Department of Labor releases July job numbers. Economists project that employers added roughly 175,000 jobs last month, with the jobless rate expected to hover around 4.1%. —The Associated Press contributed to this report

DoorDash shares pop 13% on second-quarter revenue beat 2024-08-01 21:35:00+00:00 - A DoorDash driver on an electric bicycle wearing a cooler backpack with the skyline of San Francisco in the background. Shares of DoorDash popped 13% in extended trading on Thursday after the company reported second-quarter results that beat analysts' expectations for revenue. Here is how the company did, according to LSEG analysts' expectations: Loss per share: 38 cents, which may not compare to the expected loss of 9 cents 38 cents, which may not compare to the expected loss of 9 cents Revenue: $2.63 billion vs. $2.54 billion expected DoorDash's revenue increased 23% from $2.13 billion a year earlier. It narrowed its net loss to $157 million, or a loss of 38 cents per share, from $170 million, or a loss of 44 cents per share, during the same period last year. The delivery service company said it received 635 million total orders in the quarter, up 19% year over year. DoorDash said its Marketplace GOV, which it defines as the total value of orders, was $19.71 billion, marking an increase of 20% from the year prior. For its third quarter, DoorDash said it expects to report Marketplace GOV between $19.4 billion and $19.8 billion. Analysts were expecting $19.51 billion, according to StreetAccount estimates. "We are very pleased with our financial performance in Q2 2024, as it reflects years of investment and product-level focus that drove strong growth and improved unit economics in several major areas of our business," the company wrote in a release Thursday. DoorDash will hold its quarterly call with investors at 5:00 p.m. ET.

Cannabis business owned by Cherokees in North Carolina to begin sales to any adult in September 2024-08-01 21:33:23+00:00 - CHEROKEE, N.C. (AP) — The marijuana retailer owned by the Eastern Band of Cherokee Indians on western North Carolina tribal lands announced Thursday that it will begin selling cannabis products to anyone age 21 or over next month. Great Smoky Cannabis Co. revealed the 10 a.m. Sept. 7 start date on social media. The outlet already started July 4 to sell in-store or drive-thru the products for recreational use to adults enrolled in the tribe or in any other federally recognized tribe. And it had just opened its doors in April initially medical marijuana purchases for adults. But plans were already being developed to offer products more broadly after tribal members voted in a referendum last September backing adult recreational use on their reservation and telling the tribal council to develop legislation to regulate such a market. Those details were hammered out by the council, approving language in June that effectively decriminalized cannabis on Eastern Band land called the Qualla Boundary. Marijuana possession or use is otherwise illegal in North Carolina, but the tribe can pass rules related to cannabis as a sovereign nation. Of North Carolina and its surrounding states, only Virginia allows for the legal recreational use of marijuana statewide. The social media posts Thursday offered no additional information on the expanded sales. Qualla Enterprises, the tribe’s cannabis subsidiary, had previously signaled a two-step process to expand to adult-use sales, limiting it initially to tribal members.

Xbox At Gamescom 2024: Three Days Of Live Broadcasts - Microsoft (NASDAQ:MSFT), Nintendo Co (OTC:NTDOY) 2024-08-01 21:32:00+00:00 - Microsoft Corp. MSFT has fully unveiled its plans for gamescom 2024, promising live broadcasts and game showcases over three days. From Aug. 21 to Aug. 23, the tech giant will host a series of daily streams directly from its Xbox booth, giving fans a closer look at some of the most anticipated titles in its lineup. See Also: Microsoft Reports Sharp Decline In Xbox Hardware Sales For Q4, But There’s A Silver Lining Full Schedule For Xbox’s gamescom 2024 Live Broadcasts The daily streams will be packed with first-look gameplay, developer interviews, and new trailers. Fans can look forward to insights and updates on games like “S.T.A.L.K.E.R. 2: Heart of Chornobyl,” “Atomfall,” “Age of Mythology,” “Star Wars Outlaws,” “World of Warcraft: The War Within,” “Towerborne,” “Avowed,” and “Ara: History Untold.” Microsoft’s owned studio, Bethesda, will also contribute with its own daily content streams from the booth. Here’s the full schedule for Xbox’s gamescom 2024 live broadcasts: Wednesday, August 21: Xbox @ gamescom 2024: 6 a.m. PDT / 9 a.m. EDT / 2 p.m. BST / 3 p.m. CEST Featuring “S.T.A.L.K.E.R. 2: Heart of Chornobyl,” “Atomfall,” “Age of Mythology,” and more. 6 a.m. PDT / 9 a.m. EDT / 2 p.m. BST / 3 p.m. CEST Featuring “S.T.A.L.K.E.R. 2: Heart of Chornobyl,” “Atomfall,” “Age of Mythology,” and more. Bethesda MainStream: 5 a.m. PDT / 8 a.m. EDT / 1 p.m. BST / 2 p.m. CEST Thursday, August 22: Xbox @ gamescom 2024: 6 a.m. PDT / 9 a.m. EDT / 2 p.m. BST / 3 p.m. CEST Featuring “Star Wars Outlaws,” “World of Warcraft: The War Within,” “Towerborne,” and more. 6 a.m. PDT / 9 a.m. EDT / 2 p.m. BST / 3 p.m. CEST Featuring “Star Wars Outlaws,” “World of Warcraft: The War Within,” “Towerborne,” and more. Bethesda MainStream: 5 a.m. PDT / 8 a.m. EDT / 1 p.m. BST / 2 p.m. CEST Friday, August 23: Xbox @ gamescom 2024: 6 a.m. PDT / 9 a.m. EDT / 2 p.m. BST / 3 p.m. CEST Featuring “Avowed,” “Ara: History Untold,” and more. 6 a.m. PDT / 9 a.m. EDT / 2 p.m. BST / 3 p.m. CEST Featuring “Avowed,” “Ara: History Untold,” and more. Bethesda MainStream: 5 a.m. PDT / 8 a.m. EDT / 1 p.m. BST / 2 p.m. CEST Microsoft's Expanding Portfolio: New Franchises And Classics Microsoft's presence at gamescom 2024 comes amidst a significant expansion of its gaming portfolio. The acquisition of Activision Blizzard has brought several high-profile franchises under the Xbox umbrella. Notably, “Call of Duty” remains a best-seller, with the upcoming “Call of Duty: Modern Warfare 3” set to launch on November 10, 2023. Additionally, “Diablo 4” has been a massive hit since its release in June 2023, with Blizzard promising annual expansions. Fans of “Halo,” Xbox's iconic franchise, continue to enjoy updates for “Halo Infinite,” while “World of Warcraft” remains a staple in the MMORPG genre, with the upcoming expansion “The War Within.” Meanwhile, the eagerly awaited sequel to “The Elder Scrolls V: Skyrim” is in early development, though it won't launch until at least 2028. Interestingly, both Sony Group Corp. SONY and Nintendo ADR NTDOY will skip gamescom 2024. Sony, which hasn’t attended the event in years, confirmed its absence to Eurogamer. Nintendo's decision, however, was unexpected, given its recent participation in the event. With the successor to the Nintendo Switch not due until 2025, a quieter 2024 appears to be part of their strategy. Read Next: Microsoft CEO Satya Nadella Says Tech Giant Has 500M Monthly Users Across Gaming Platforms, Devices: ‘Our Content Pipeline Has Never Been Stronger’ Image courtesy of Gamescom.

Block reports better-than-expected earnings for second quarter 2024-08-01 21:32:00+00:00 - Block beat on profit in its second-quarter earnings report on Thursday. The stock rose in extended trading. Here is how the company did, compared to analysts' consensus estimates from LSEG. Earnings per share: 93 cents adjusted vs. 84 cents expected 93 cents adjusted vs. 84 cents expected Revenue: $6.16 billion vs. $6.28 billion expected Block, formerly known as Square, posted $2.23 billion in gross profit, up 20% from a year ago. Analysts tend to focus on gross profit as a more accurate measurement of the company's core transactional businesses. The company reported net income of $195.3 million, or 31 cents per share, up 91% from $102 million, or 17 cents per share, a year earlier. The Cash App business, the company's popular mobile payment platform and a significant contributor to overall profitability, reported $1.3 billion in gross profit, a 23% year-over-year jump. Block, run by Twitter co-founder Jack Dorsey, said its Cash App Card monthly active users increased 13% year over year to more than 24 million in June. Block has slimmed down operations over the past year. In January, Dorsey reportedly said in a note to staffers that the company had laid off a "large number" of workers. This followed a round of layoffs in December. The company raised its full-year guidance for gross profit, adjusted earnings and adjusted operating income. Dorsey also announced that Afterpay CEO and co-founder Nick Molnar would be expanding his role at Block and will lead a "centralized sales function across Block, inclusive of Square." The position will report directly into the Block CEO.

Protecting against floods, or a government-mandated retreat from the shore? New Jersey rules debated 2024-08-01 21:30:37+00:00 - TOMS RIVER, N.J. (AP) — New Jersey officials are defending proposed building rules designed to limit damage from future storms and steadily rising seas in coastal areas, countering criticism that the state aims to force people away from the Jersey Shore by making it harder and more expensive to build or rebuild there. Lawmakers from both parties held a hearing Thursday in Toms River, one of the hardest-hit communities by Superstorm Sandy, to discuss the state’s Protecting Against Climate Threats initiative and respond to criticism of the proposal from business interests. Mandated by an 2020 executive order from Democratic Gov. Phil Murphy, the proposed rules are designed to account for rising seas and a changing climate in making land use decisions near the ocean, bays and rivers in an effort to limit damage from future storms. The rules would extend the jurisdiction of flood control measures further inland, require buildings to be constructed five feet (1.5 meters) higher off the ground than current rules call for, and require elevating roadways in flood-prone areas. They are to be published soon in the New Jersey Register, and subject to public comment before taking effect later this year. Other states and cities are considering or doing similar climate-based updates to development rules or acquisition of flood-prone properties, including North Carolina, Massachusetts, Fort Worth, Texas, and Nashville, Tennessee. Nick Angarone, New Jersey’s chief resilience officer, said proposed rules are necessary to “be clear-eyed about what is happening right before us.” He said New Jersey ranks third in the nation in flooding claims paid by the federal government at $5.8 billion since 1978. Angarone and others cited a Rutgers University study projecting that sea levels in New Jersey will rise by 2.1 feet (65 centimeters) by 2050 and 5.1 feet (1.5 meters) by the end of the century. By that time, he said, there is a 50% chance that Atlantic City will experience so-called “sunny-day flooding” every day. The New Jersey Business and Industry Association pushed back hard against the rules and the study upon which they are based, warning that the initiative is the start of a much-debated “managed retreat” from the shoreline that some scientists say needs to happen but that is anathema to many business groups. “It will significantly harm the economy of our shore and river communities, and is premised on the policy that people and businesses should be forced to retreat from the coast,” said Ray Cantor, an official with the group and a former advisor to the Department of Environmental Protection under Republican Gov. Chris Christie. “We do believe that we need to consider sea level rise in our planning efforts,” he said. “However, this rule is based on flawed scientific assumptions and will force a retreat from the Jersey Shore and coastal communities.” Rutgers defended its projections as consistent with 2021 sea-level projections for Atlantic City of the Intergovernmental Panel on Climate Change, “a trusted, highly credible, heavily reviewed source of information for climate change.” Cantor claimed the new rules will create “no-build zones” in parts of the shore where it will simply be too costly and onerous to comply with the new requirements. State officials vehemently denied that claim, saying the rules aim only to lessen the amount of damage from future storms that residents and businesses must deal with. They created a website aimed at “myths” about the new rules, making clear that nothing would prevent the rebuilding of storm-damaged structures and that there would not be any “no-build zones.” Tim Dillingham, executive director of the American Littoral Society, said governments should start discouraging new construction in areas that repeatedly flood. “We need to stop developing highly vulnerable areas,” he said. “We ought to take steps to keep those people out of harm’s way.” Under its Blue Acres buyout program, New Jersey acquired and demolished hundreds of homes in areas along rivers and bays that repeatedly flood. But it has yet to buy a single home along the ocean. Sen. Bob Smith, who chaired the hearing, said the measures called for by the proposed rules “are not a retreat.” He called opposition from the Business and Industry Association “silly.” The association appeared unfazed by the criticism; it hired an advertising plane to fly a banner up and down the oceanfront on Thursday with words for the governor: “Don’t Force A Shore Retreat.” ___ Follow Wayne Parry on X at www.twitter.com/WayneParryAC