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VP Kamala Harris emerges as a main target at the RNC 2024-07-17 16:26:43+00:00 - With President Joe Biden's nomination still on shaky ground, Republicans at their party's national convention this week have sharpened their criticism of Vice President Kamala Harris, Biden's likeliest replacement on the ticket. Harris was featured prominently in speeches over the first two days of the Republican National Convention in Milwaukee. Speakers made sure to name her while criticizing the Biden administration's policies, and they sought to tie her to major election issues, including the border crisis — repeatedly referring to her as the "border czar" — and violent crime. Arkansas Sen. Tom Cotton on Tuesday accused Biden and Harris of welcoming a “Third World invasion” through the border. Former United Nations Ambassador Nikki Haley warned of “four more years of Biden or a single day of Harris” in her speech. She mischaracterized Harris' role in leading the administration’s effort to address the root causes of migration in 2021. “Kamala had one job — one job — and that was to fix the border," Haley said. "Now imagine her in charge of the entire country?” Missouri Sen. Eric Schmitt claimed that Biden and Harris opened the border “to terrorists, to criminals.” He also pointed to violent crime during the pandemic, saying Harris “shares in those failures.” Violent crime surged in 2020 — when Donald Trump was still president — but it has steadily dropped in the following years. Minnesota Rep. Tom Emmer also tried to link violent crime to Harris. “When Minneapolis was in flames and businesses were in ruins, Kamala Harris encouraged and enabled the criminals and the rioters,” he said, presumably referring to the 2020 racial justice protests. The attacks on Harris at the RNC are part of a broader GOP strategy to cast the vice president as a bigger target ahead of the November election. Reporting has indicated that while the Trump campaign hopes Biden stays in the race, believing it is easier to defeat him than any other Democrat, it is homing in on its attacks on Harris in case the president bows out. Trump himself has increasingly criticized Harris on the campaign trail in recent weeks, mispronouncing her first name and painting her as part of the “radical left.”

The king’s speech sounded a bit like Labour governments of old. But only a bit 2024-07-17 16:22:00+00:00 - The message from the king’s speech was clear. After 14 years in opposition, Labour is back with a plan to get the economy moving. The brakes on growth are coming off, says the prime minister. In a way, the measures outlined to achieve the government’s “mission” hark back to Labour governments of the past. There is to be more nationalisation, more centralised control of planning, more power for workers, an industrial strategy council and a national wealth fund to boost investment in infrastructure projects. Economic policy under Keir Starmer will become more interventionist and have a discernible social-democratic tinge to it. But only modestly so. This will not be a tax-and-spend government prepared to boost growth by borrowing for long-term investment. Active demand management is not part of the plan. Instead, the chancellor, Rachel Reeves, will be forced to get the approval of the independent Office for Budget Responsibility (OBR) for any major tax and spending decisions she intends to take. This proposal is really just for show, since Reeves has shown no desire to emulate Liz Truss, who came a cropper after sidelining the OBR and announcing £45bn of unfunded tax cuts in September 2022. But with interest rates set by the technocrats at the Bank of England and fiscal policy policed by the technocrats at the OBR, it leaves little scope for the government to act on the demand side of the economy. Labour won’t mind this, because it thinks the real problems of the economy lie on the supply side, and that a period of stability is needed to allow reforms to work. These weaknesses include the poor state of public infrastructure, low levels of business investment, weak productivity growth and inadequate skills. With that in mind, the two most important bills announced in the speech involve planning and the workplace. Both have the advantage of potentially being transformative without costing the government serious amount of money. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Planning reform is seen as key to unlocking the door to faster growth. There will be national targets for housebuilding and a national strategy for infrastructure. The planning system will be reformed and streamlined. Democratic engagement will be about where, not if, new homes and infrastructure are built. This top-down approach is almost certain to be tested in the courts and is at odds with Labour’s separate plans to devolve more power to local authorities and metro mayors. It might not be universally popular in some of Labour’s newly won seats in the leafy shires either. Business likes the sound of planning reform but is less keen on the employment rights bill, which will ban exploitative zero-hours contracts, end fire and rehire, provide a range of employment rights from a worker’s first day in a new job, and make it easier for trade unions to organise and operate. Employers have expressed concern that the reforms will make the labour market less flexible. The government’s argument is that flexibility has not resulted in higher productivity or strong real wage growth, and that the changes will lead to companies being encouraged to invest more in new labour-saving equipment and in training. Labour has been fortunate in coming to power with inflation back at 2% and growth on a gentle upswing. It will need to stay lucky because changes to the supply side of the economy are unlikely to bear fruit overnight and even then the impact will not appear dramatic. Estimates of the economy’s long-term sustainable growth rate range from 1% to 1.5%. If Labour manages to push that up by 0.25 percentage points by the end of this parliament it will be doing extremely well.

Walt Disney CEO Bob Iger and journalist Willow Bay to become Angel City FC’s new owners 2024-07-17 16:14:06+00:00 - LOS ANGELES (AP) — Angel City FC announced Wednesday that Walt Disney Company CEO Bob Iger and Southern California dean for communication and journalism Willow Bay will be the new controlling owners of what the franchise calls the most valuable women’s sports team in the world. The married couple will acquire the controlling stake of the of the National Women’s Soccer League team at a value of $250 million. Bay will serve on and fully control the team’s board of directors and will represent the team on the NWSL’s Board of Governors. ACFC said it generated the highest revenue of any women’s team in the world in 2023, led the NWSL in attendance, sponsorship revenue and total revenue, and has the largest season ticket membership. The team said the transaction was unanimously approved by its board and is expected to close in the next 30 to 60 days. The transaction is subject to customary closing conditions, including the approval of NWSL. “Willow and Bob bring unparalleled operational experience, expertise, and passion to ACFC and to the NWSL,” the board said in a statement. “They’re lifelong sports fans who have been supporters of ACFC since the team’s founding. They are deeply committed to the Los Angeles community, having been residents, leaders, and philanthropists in the city for almost three decades and have a long track record of dedicating their time and resources to support local Los Angeles organizations.” ___ AP soccer: https://apnews.com/hub/soccer

"Hillbilly Elegy" rockets to top of bestseller list after JD Vance picked as Trump's VP 2024-07-17 16:03:00+00:00 - How JD Vance can help bring in big donors How JD Vance can help bring in big donors JD Vance published his bestselling memoir "Hillbilly Elegy" in 2016, just months before former President Donald Trump won his first presidential campaign. Now, with Trump announcing Vance as his running mate on Monday, the book is back in the news — and at the top of the bestseller lists. Trump's decision to pick Vance out of a crowd of vice presidential hopefuls has also boosted viewership of the film adaptation of "Hillbilly Elegy," with streams of the Ron Howard-directed 2020 movie surging 1,180% on July 15, according to research firm Luminate. As of Wednesday morning, the film was ranked as the fourth-most streamed show on Netflix. Viewers watched the film for a combined 19.2 million minutes on Monday, the day Vance was picked as Trump's running mate, compared with 1.5 million minutes on the prior day, Luminate said. "Hillbilly Elegy" also tops Amazon's Kindle bestseller list, surging from No. 220 prior to Trump's announcement. Sales of the book now total at least 1.6 million copies, according to Circana, which tracks around 85% of hardcover and paperback sales. Vance's book, which details his roots in rural Kentucky and blue-collar Ohio, was an immediate hit and made him a national celebrity. The memoir became a cultural talking point after Trump's presidential victory in 2016, with some readers seeking insights from the book about Trump's appeal to rural voters. In "Hillbilly Elegy," the Ohio senator reflects on the transformation of Appalachia from reliably Democratic to reliably Republican, sharing stories about his chaotic family life and about communities that had declined and seemed to lose hope. Vance first thought of the book while studying at Yale Law School, and completed it in his early 30s, when it was eventually published by HarperCollins. "I think that it's more about the White working-class folks who aren't necessarily economically destitute but in some ways feel very culturally isolated and very pessimistic about the future," Vance said on NPR's "Fresh Air" program in 2016 in an interview about "Hillbilly Elegy." He added, "That's one of the biggest predictors of whether someone will support Donald Trump — it may be the biggest predictor — is the belief that America is headed in the wrong direction, the belief that your kids are not going to have a better life than you did." Vance, 39, would be the youngest vice president since Richard Nixon, who served two terms under Dwight Eisenhower, starting in 1953. —With reporting by the Associated Press.

E.U. Court Rebukes Bloc’s Executive Arm Over Covid Vaccine Contract Secrecy 2024-07-17 15:55:20+00:00 - The European Union’s second-highest court delivered an unusual reprimand to the European Commission on Wednesday, ruling that it did not give the public sufficient information about its agreements to purchase Covid-19 vaccines during the coronavirus pandemic. The decision by the General Court in Luxembourg gives new momentum to critics of Ursula von der Leyen, the president of the European Commission, who led the bloc’s response to the pandemic. It came just ahead of what is expected to be a tight vote on Thursday that will determine if she will serve another term as the European Union’s top official. The European Union has refused to disclose the terms of the contracts it secured for Covid-19 vaccines, publishing redacted purchasing agreements. Green members of the European Parliament and private individuals had sued the commission, the bloc’s executive arm, seeking to gain access to the contracts and terms it negotiated with vaccine manufacturers. On Wednesday, the court found that the European Commission was wrong to redact parts of the purchasing agreements that it published online, saying that it “did not demonstrate that wider access” to the details would undermine commercial interests. The court also said that the commission should have disclosed conflicts of interests by members of the team who negotiated the purchase of the vaccines.

J.D. Vance’s A.I. Agenda: Reduce Regulation 2024-07-17 15:25:28+00:00 - Senator J.D. Vance, Republican of Ohio, is a strong skeptic of regulating artificial intelligence. He’s also in favor of reining in Big Tech, companies he says have grown so powerful that they stymie smaller companies’ ability to succeed. That seeming contradiction could play a role in shaping the Trump administration’s stance on A.I. policy if former President Donald J. Trump is elected later this year. Mr. Vance — the Republican pick for vice president and a former tech investor — has pushed for looser regulations and has vocally supported open-source A.I., the public release of underlying code that can be copied and altered to create new technology. But he has also broken with his party to support Lina Khan, the chair of the Federal Trade Commission, for her aggressive stance on antitrust action against Big Tech. And he has strong ties with some of the tech industry’s most powerful backers, many of whom fund smaller A.I. start-ups. Last week, during a committee hearing on privacy and A.I., Mr. Vance accused Big Tech companies of predicting that A.I. could destroy humanity in order to solicit new regulations that only the largest companies could comply with.

Real Estate Stock Signals a Boom in Manufacturing Activity 2024-07-17 15:14:00+00:00 - Most investors have been trying to squeeze the last leg in the technology sector rally, risking getting caught in the top of artificial intelligence names like NVIDIA Co. NASDAQ: NVDA, which is now rejecting a new all-time high as news hit the market that the U.S. will increase technology bans and embargoes further against China, which will hurt semiconductor stocks. Prologis Today PLD Prologis $123.21 +1.72 (+1.42%) 52-Week Range $96.64 ▼ $137.52 Dividend Yield 3.12% P/E Ratio 36.03 Price Target $129.94 Add to Watchlist Diversifying away from these risks will require investors to look not at the rear-view mirror but at the road ahead. Gold prices are now making a new all-time high, a rally not seen since the inflationary environment of the 1970s, and that means something for the U.S. dollar. Since central banks and other institutions can buy dollars to keep them strong, the dollar index doesn’t really reflect the economic reality of today. Get FedEx alerts: Sign Up But, earnings coming out of Prologis Inc. NYSE: PLD tell investors a different story, the same story that gold prices are trying to tell. The conclusion: Logistics and real estate stock will be in the eye of the storm as a potential boom in the manufacturing sector takes place. So, to diversify away from the potential technological pullbacks, here’s how investors can look at Prologis stock and beyond. This Year’s Prologis Activity Forecast: Key Insights As of right now, Wall Street analysts' consensus price targets on Prologis stock are $129.9 a share, or roughly 7% above the current price. However, investors should consider the following drivers to determine whether analysts will need to upgrade their views in the following quarters. According to a Cushman & Wakefield NYSE: CWK report, the U.S. industrial market has recently lost momentum. However, there have been signs of a recovery in the second quarter, with rental rates for industrial property beginning to recover and vacancy rates improving. Despite these improvements, the demand side of the equation wasn’t enough to warrant new development to increase the availability of new industrial property. Investors can see this trend in Prologis’ second quarter 2024 earnings press release. Rental revenues rose to $1.8 billion, up from $1.6 billion a year prior, roughly a 12.2% increase in the past 12 months. On the other hand, strategic capital (tied to new development) revenues declined to $154.7 million from $799 million a year prior. Prologis MarketRank™ Stock Analysis Overall MarketRank™ 4.49 out of 5 Analyst Rating Moderate Buy Upside/Downside 5.5% Upside Short Interest Healthy Dividend Strength Strong Sustainability -1.85 News Sentiment 0.85 Insider Trading N/A Projected Earnings Growth 11.81% See Full Details While the current state of the industrial sector in the U.S. doesn’t look like it’s in the best state, investors can look to Prologis management’s guidance to understand what might be coming in the following quarters. An earnings per share (EPS) guidance for $3.15 to $3.35 a share last is now pushed to a range of $3.25 to $3.45. On seeing this new guidance, Wall Street analysts forecast up to 11.8% earnings per share (EPS) growth in the next 12 months. Analyst forecasts should be taken with a grain of salt, so here’s how investors can justify them by looking at the macro picture. Prologis Positioned for Success with Support from Industry Movers Recently, shares of RXO Inc. NYSE: RXO have rallied by over 50% on news of a new acquisition within the logistics industry. This move could capitalize on bullish trends that could be heading to the space in the future. But how will the industry be supported now that the ISM manufacturing PMI index has been contracting for nearly 20 consecutive months? It has everything to do with the state of the U.S. dollar today. Gold prices broke to an all-time high, a proxy for the market's sentiment toward the dollar, betting that the currency will be devalued soon. According to the CME's FedWatch tool, there's a 90% probability of interest rate cuts coming by September 2024, and with lower rates comes a lower currency. With a lower dollar, U.S. exports will become more attractive to foreign buyers, as foreign currency will go a long way when buying American goods. Also, lower rates could spike mortgage and housing demand and consumer spending. This is all good for Prologis, as some of its top tenants include Amazon.com Inc. NASDAQ: AMZN, Home Depot Inc. NYSE: HD, and FedEx Co. NYSE: FDX. As consumer discretionary activity sees a boost on lower rates, Amazon warehouses could seek to expand and sign with Prologis, and so will Home Depot on the new home improvement products demand. Why Prologis May Be a Strong Buy for Investors Considering these trends, investors could expect to see Prologis recover on a valuation basis, which is where today's discounts make it a more attractive stock. On a price-to-book (P/B) basis, Prologis stock trades at a 1.9x multiple, which offers a discount of 25% compared to the real estate investment trust (REITs) industry's 2.5x average multiple. Price action would offer a different stance to this discount, which can be considered as a leading indicator for what could come for the stock. Prologis stock now trades at 92% of its 52-week high price, which could fit the definition of the stock being in a bull market of its own. Prologis, Inc. (PLD) Price Chart for Wednesday, July, 17, 2024 Before you consider FedEx, 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 FedEx wasn't on the list. While FedEx currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

This Medical Giant's Stock Rebounds: A 15% Upside Is the Minimum 2024-07-17 14:52:00+00:00 - Johnson & Johnson Today JNJ Johnson & Johnson $156.58 +5.57 (+3.69%) 52-Week Range $143.13 ▼ $175.97 Dividend Yield 3.17% P/E Ratio 9.76 Price Target $174.07 Add to Watchlist Johnson & Johnson NYSE: JNJ has struggled for the last year or two as the impacts of COVID-19 and the spin-off of Kenvue NYSE: KVUE work their way through the system. The takeaway from the Q2 earnings release is that organic growth is back in the picture. Reported revenue is down compared to last year because of the Kenvue spin-off. Still, the shift to sequential growth is a positive signal compounded by a recent acquisition and a robust pipeline that promises to drive results for this healthcare company over the next few years. Get Johnson & Johnson alerts: Sign Up Johnson & Johnson Reports Strong Quarter, Gives Mixed Outlook Johnson & Johnson had a solid quarter with strength in all major operational categories. The $22.4 billion is up 4.3% on a continuing operations basis, 20 basis points better than expected, with operational growth of 6.6% and ex-COVID of 7.1%. Strength was driven by sales in the U.S., which are up 7.6% compared to the 5.3% gain internationally; Innovative Medicine grew by 8%, leading MedTech’s 4% increase. The margin is another area of strength. The company experienced a GAAP loss due to one-offs and non-cash impairments, but the damage was less than expected, leaving the adjusted results ahead of the consensus. The adjusted EPS of $2.82 grew by 10.2% to outpace the top-line strength and drive robust cash flows. Cash flows are prioritized for growth, dividends, and repurchases, which are part and parcel of the share price outlook. The company did not report any repurchases for Q2, but activity in the last year reduced the average diluted count by more than 7%, aiding the bottom line's strength. Guidance is mixed but favorable to investors. The company raised its guidance for reported and operational growth, but the operational figure is shy of the consensus. The salient detail is that adding Shockwave Medical and Proteologix to the portfolio will boost revenue and earnings above the consensus, resulting in favorable revisions from the analysts. Analysts and Institutions Provide a Tailwind for JNJ Stock Price The analysts' activity in JNJ is light this year but bullish for the stock price. The consensus rating of Hold has been firm for at least twelve months while the consensus price target edged higher. The most recent revisions were released less than two weeks before the Q2 release, reiterating an Overweight rating and a $215 price target. The $215 target is the highest on Wall Street and is leading the market into the high end of the analysts' range: consensus is good for a 15% gain, while the range’s high end adds another 22% upside. Institutional activity is mixed in 2024 but shows a shift that will provide another tailwind for this market. The institutional activity was tilted to the downside in Q1, aiding the decline in the share price, but shifted to net-buying in Q2. The trend continued into Q3 and is gaining momentum. Recent buyers include numerous small wealth managers, evidence of the stock's growing appeal. Johnson & Johnson Dividend is Safe and Growing Johnson & Johnson Dividend Payments Dividend Yield 3.17% Annual Dividend $4.96 Dividend Increase Track Record 63 Years Annualized 3-Year Dividend Growth 5.70% Dividend Payout Ratio 30.92% Next Dividend Payment Sep. 10 See Full Details Johnson & Johnson’s dividend is attractive, with the shares trading near long-term lows. The annualized payout of $4.96 is worth about 3.3% in yield, which is near a fifteen-year high. The distribution is expected to grow, sustaining the mid-single-digit CAGR run the last few years, but the yield will not last. JNJ trades at a deep discount on its historic P/E, which should be expected to diminish over the coming years. Shares of JNJ are up more than 2% on the Q2 news, confirming support at the critical level. The market is above near-term resistance and indicated higher with a chance of gaining $5 in the next few days and $10 to $15 over the coming weeks and months. Assuming the Q3 results align with the outlook, earnings and analysts' revisions should drive this market back to record levels by the end of the year. Before you consider Johnson & Johnson, 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 Johnson & Johnson wasn't on the list. While Johnson & Johnson currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Americans spend more on health care than any other nation. Yet almost half can't afford care. 2024-07-17 14:01:00+00:00 - Protest outside UnitedHealthcare headquarters ends in arrests Protest outside UnitedHealthcare headquarters ends in arrests 00:37 Americans spend more money on health care on a per capita basis than people in any other developed nation, yet almost half say they've struggled recently to pay for medical treatment or prescription drugs, according to a new study from Gallup and West Health. About 45% of those polled by the organizations said they'd recently had to skip treatment or medicine either because of cost or lack of easy access. Of those, about 8% said they also wouldn't have access to affordable care if they required it today, a group that Gallup and West Health termed "cost desperate." While 55% of Americans are "cost secure," meaning they can afford care and medicine, that's a decline from 61% who fell into that category in 2022, the study found. More people are struggling with health care costs partly due to higher inflation as well as a long-term trend toward insurance plans with higher deductibles and less comprehensive coverage, Tim Lash, president of West Health, a nonprofit group focused promoting affordable medical care, told CBS MoneyWatch. About 94% of those surveyed believe they or Americans in general are paying too much for health care and not getting their money's worth. "We see individuals and families making decisions that no one should have to make, from, 'Should I go on vacation or do I pay for health care and medication,' or at the worst, 'How do I ration my food to afford my prescriptions?'" Lash said. "As the wealthiest and most developed country, that's not where we should be." Americans spend an average of $12,555 per person annually on health care, according to the Peterson-KFF Health Care Tracker. By comparison, typical health care spending across other developed nations is about $6,651, their analysis found. "What we found as we string together the trend of data points is really quite concerning," Lash said. "It's that health care affordability has been getting worse — it shines a light on the number of families that can't afford things like prescription drugs." Rising insurance costs The average family insurance deductible in the U.S. stood at about $3,800 in 2022, up from $2,500 in 2013, according to KFF. The IRS considers insurance for families with deductibles of $3,200 or more to be high deductible plans. Americans with health care insurance are also struggling to afford coverage, with some complaining that their insurers are putting up roadblocks to gaining access to care. On Monday, for example, demonstrators outside of UnitedHealthcare headquarters protested what they allege is the company's practice of refusing to approve care through prior authorization denials or through claim denials. "Health insurance coverage has expanded in America, but we are finding it is private health insurance corporations themselves that are often the largest barrier for people to receive the care they and their doctor agree they need," Aija Nemer-Aanerud, campaign director with the People's Action Institute, told CBS Minnesota. A spokesperson for UnitedHealthcare told CBS Minnesota it had resolved the issues raised by protesters. The Gallup-West Health study also found that bigger gaps in affordability for some demographics, with Black and Hispanic people more likely to face problems in paying for medical treatment or prescriptions. Older Americans between 50 to 64 — those who don't yet qualify for Medicare, which kicks in at 65 — are also facing more challenges, the study found. "For me, there is an opportunity in the data — this clearly demonstrate this is a pain point that isn't acceptable," Lash said. "I'm hopeful we can leverage theses types of results to engage in meaningful reform."

Financial Giant's Shares Soar on EPS Beat and Record Asset Levels 2024-07-17 13:17:00+00:00 - State Street NYSE: STT is a financial services firm that reported Q2 2024 financial results on Jul. 16, 2024. Shares were up 7.45% after the release as the firm beat adjusted earnings per share estimates by 12 cents. Revenue also beat expectations by $45 million. State Street Today STT State Street $85.34 +0.52 (+0.61%) 52-Week Range $62.78 ▼ $85.37 Dividend Yield 3.23% P/E Ratio 15.98 Price Target $85.12 Add to Watchlist Even with the rise in share price post-earnings, the firm is still underperforming the market and its sector year to date. State Street is up 11.5%. The financial services sector, represented by The Financial Select Sector SPDR Fund NYSEARCA: XLF, is up 16.5%. Get SPDR S&P 500 ETF Trust alerts: Sign Up Let’s examine the firm's operations, which are among the top 50 largest publicly traded companies in the capital markets industry worldwide. We’ll then examine the financial results to understand why the market reacted positively. Lastly, we will examine the outlook, including what Wall Street analysts expect going forward. State Street: A Big Player in Custodial Services and Index Funds State Streets' operations are divided into two business lines: Investment Servicing and Investment Management. The investment servicing segment works with institutional clients, including mutual funds, corporate and public retirement plans, and foundations and endowments. Its technologies allow clients to execute financial transactions, and the firm primarily acts as a custodian. Custodians provide for the safekeeping of financial assets. State Street provides a range of software to institutional clients. This software covers things like reporting, compliance, and portfolio analysis. The firm’s Investment Management business provides investment products through its State Street Global Advisors division. The firm offers both passive and actively managed investment solutions. But, most of its assets under management (AUM) are in products that track market indexes, such as the S&P 500. For example, State Street manages the largest S&P 500 exchange-traded fund (ETF), the SPDR S&P 500 ETF Trust NYSEARCA: SPY, with $564 billion under management. Primary competitors in this area include BlackRock NYSE: BLK and Vanguard. The firm breaks down revenue into two primary sources on its income statement. The first is fee revenue, which made up 79% of total revenue in 2023. It generates revenue from asset management fees and fees for other services it provides in both divisions mentioned above. The second is net interest income (NII), which accounted for 23% of total revenue in 2023. The firm generates this income from investing client deposits. An “other income” line contributed -2% to total revenue in 2023. Record Assets Boost State Street's Stock Price State Street posted an earnings surprise of 6%. This influenced the positive reaction of the market, despite adjusted EPS being down 1% from last year. The firm posted records in assets under custody/administration (AUC/A) and assets under management (AUM). AUC/A accounts for assets in the custodial part of the business and came in at $44.3 trillion. This number grew 12% from the previous year. State Street won $291 billion in new assets and secured $2.4 trillion in assets yet to be installed. State Street Dividend Payments Dividend Yield 3.25% Annual Dividend $2.76 Dividend Increase Track Record 12 Years Annualized 3-Year Dividend Growth 8.27% Dividend Payout Ratio 51.69% Recent Dividend Payment Jul. 11 See Full Details AUM represents assets in the investment management part of the business and came in at $4.4 trillion. This number was nearly $100 billion higher than expected and grew 16% from the previous year. Market share gains in U.S. low-cost ETFs and Europe, Middle East, and Africa (EMEA) ETFs helped reach this record. Another sign of strength for the firm was the announcement of a 10% increase in its next quarterly dividend to $0.76 per share. Using the current share price would give the firm a dividend yield of 3.6%. This puts the firm’s dividend yield significantly above the average of large-cap firms in the capital markets industry, which is 2.4%. It is also significantly above that of BlackRock. Total revenue increased by 3%, driven by gains in NII of 6%, and fee revenue up by 2%. An increase of 11% in both management fee and foreign exchange trading fee revenue helped boost overall fee revenue. Adding Context to State Street's Results and Examining Analyst Price Targets State Street MarketRank™ Stock Analysis Overall MarketRank™ 4.92 out of 5 Analyst Rating Hold Upside/Downside 3.5% Upside Short Interest Healthy Dividend Strength Strong Sustainability -0.30 News Sentiment 1.17 Insider Trading Selling Shares Projected Earnings Growth 9.95% See Full Details It is impressive to see State Street's record asset levels, which were a large reason for the stock's rise. A concern going forward is that fee revenue from most other large sources, such as back-office services and software, declined. The rising market artificially helped rising assets and higher management fee revenues. This boosted the numbers without the firm doing anything. Company management has more control over service fees. So, seeing these numbers go down dampens the results. The average price target sits at $85.16, implying almost no upside. However, Wells Fargo increased its price target after the release to $98, implying an upside of 16%. Before you consider SPDR S&P 500 ETF Trust, 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 SPDR S&P 500 ETF Trust wasn't on the list. While SPDR S&P 500 ETF Trust currently has a "hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Stock Rotation is Underway: Here are the Winners Moving Forward 2024-07-17 13:14:00+00:00 - It’s been a long time coming, but stock rotation is back in the outlook. Rotation, the practice of exiting one group of stocks in favor of another, was triggered by the latest CPI report, which was better than expected. The takeaway from the CPI report, compounded by comments from Jerome Powell, is that inflation is cooling and tracking where the FOMC can cut interest rates. Because the latest PCE data has consumer inflation at 2.6% and trending lower, that could be within the next few months. The CME FedWatch Tool shows the market pricing in 100% of a cut by September, only two meetings away, so the upcoming July FOMC meeting could catalyze the market into a quicker rotation. Get Microsoft alerts: Sign Up Big Tech is Out: Everything Else is Back In It is no secret that the market is heavily concentrated. Tepid economic conditions, interest rate headwinds, and sluggish consumer spending were offset by the rise of AI, led by Big Tech. The Magnificent 7 are the most heavily traded stocks set up for correction. The caveat for bearish traders is that a correction in Big Tech will also set up a buying opportunity for it. With interest rates set to fall, business conditions will improve across the economy, resulting in a cyclical upswing that can drive earnings growth for years. As it is, the market expects earnings growth to accelerate this year through year-end and YoY S&P 500 NYSEARCA: SPY earnings growth to accelerate from this year to the next. That tailwind could strengthen if the FOMC follows through on the rate cut and gives a favorable outlook for additional cuts within the next 12 months. Specific sectors that will benefit most from lower rates include consumer-oriented businesses and small businesses, which may choose to increase capital investment because of the lower cost of money. Flight To Safety Leads Blue Chip Index to New Highs The CPI spurred all three major indices to new all-time highs, but there is clear outperformance in the safe-haven blue-chip Dow Jones Industrial Index NYSEARCA: DIA. The Dow Jones Industrial Average has gained nearly 5%, more than doubling the S&P 500 advance since the CPI was released, both outperforming the NASDAQ Composite’s NASDAQ: QQQ tepid 0.75% advance. While most of the Mag 7 names are moving lower, Dow components like Home Depot NYSE: HD and United Health NYSE: UNH advanced more than 10%, and consumer names like McDonald’s NYSE: MCD followed with smaller but still robust advances. The idea here is that quality counts. Home Depot, United Health, and McDonald’s are market leaders that drive value for shareholders even when growth is absent, and growth is present now and about to be invigorated by lower interest rates. The Rally Broadens to Small and Mid-Cap Stocks As solid as the gains in the Dow Jones Industrial and S&P 500 were, the real strength was in the Russell 2000 INDEXRUSSELL: RUT. The small-cap Russell 2000 advanced more than 10% in the last week, more than doubling the Dow Jones Industrial advance, with roughly 90% of the stocks within it making gains. Most R2K names advanced at least 3% and many more than 10%. All sectors contributed to the gains as risk-on investing returned to the fore. Names making significant advances include but are not limited to Insmed NASDAQ: INSM, SPX Technologies NYSE: SPXC, Flour Corporation NYSE: FLR, and Hamilton Lane NASDAQ: HLNE, which advanced 13% to 14% for the week. Coincidentally, SPX Technologies and Flour Corporation are involved in the engineering/construction industries, which are expected to be boosted by lower rates. Insmed is a biopharma with the added tailwind of recently released good news. Hamilton Lane is a private equity firm specializing in emerging growth, middle-markets, turnarounds, and venture deals; all categories are expected to benefit from lower interest rates. Before you consider Microsoft, 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 Microsoft wasn't on the list. While Microsoft currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Impressive Rally: Eyeing Further Upside for This Financial Stock 2024-07-17 11:23:00+00:00 - The Goldman Sachs Group Today GS The Goldman Sachs Group $502.18 -0.84 (-0.17%) 52-Week Range $289.36 ▼ $509.48 Dividend Yield 2.19% P/E Ratio 19.61 Price Target $479.72 Add to Watchlist If you look at Goldman Sachs’ NYSE: GS 70% gain over the last nine months and wonder how much higher it can go, the answer is a lot. The uptrend is supported by revenue and earnings quality, an outlook for double-digit growth in the next fiscal year, and robust sell-side support that shows no signs of stopping. The takeaways from the Q2 results are that headwinds are present but overcome by operational strengths, a healthy balance sheet, and growing capital returns. Among the highlights of the Q2 report is a 9% increase in the dividend. This is the 12th consecutive increase, and although the pace of distribution has slowed, the outlook for sustained increases is sound. The current payout is less than 20% of the earnings, leaving ample room for theoretical increases and share repurchases. Share repurchases aid the outlook for share prices, falling by an average of 3% in the quarter, helping to lift the book value by 6%. Get GS alerts: Sign Up Goldman Sachs had a Strong Quarter Driven by Asset Management Goldman Sachs had a strong quarter driven by growth in all operating segments. However, the 1.5% gain in Platform Solutions is overshadowed by the 13% gain in Global Banking & Markets and a 27% gain in Asset & Wealth Management. The salient detail is that diversified operations led to 17% top-line growth, outperforming consensus by 300 basis points. Margin news is also good. The company delivered a relatively flat margin compared to the prior year, resulting in a significant increase in earnings compounded by the lower share count. The GAAP EPS, aided by reduced credit reserves and historically high NII, came in at $8.62, up 180%. Goldman Sachs doesn’t give guidance but shows momentum in its deal pipeline that should sustain strong results through the year’s end. The balance sheet is a fortress, alleviating liquidity concerns and strengthening the outlook for capital returns. The common Tier 1 capital ratio improved by 20 bps to 14.8% and is well above the minimum. Sell-Side Support is Strong for Goldman Sachs, Leading the Market Higher The Goldman Sachs Group MarketRank™ Stock Analysis Overall MarketRank™ 4.95 out of 5 Analyst Rating Moderate Buy Upside/Downside 5.1% Downside Short Interest Healthy Dividend Strength Strong Sustainability -0.40 News Sentiment 0.63 Insider Trading Selling Shares Projected Earnings Growth 10.72% See Full Details Analysts' upgrades and revisions are central to the uptrend in the Goldman Sachs Group's stock price, which is not over. MarketBeat.com tracks seven revisions following the release, all including an increased price target. The consensus target lags the price action by 6% but is up 25% YoY and rising now. The fresh revisions include a new high price target of $565 and lead the market to the ranges’ high end, good for a new all-time high and a potential gain of 10%. Institutions are also buying this stock. Although institutional activity has been mixed over the last year, it shifted to net buying in Q4 2023 and ramped up in Q1 2024. The increase in buying held steady in Q2 and continued into Q3, helping to support the uptrend. Institutions own about 71% of the stock, so their updraft is strong. Insiders are selling, but this is not a red flag; the sales are consistent with share-based compensation, and the impact is minute and offset by share buybacks. Insiders own only 0.5% of the stock. Goldman Sachs' Rally Strengthens Goldman Sachs has trended higher and can continue to increase because momentum is building, and there is room for the market to run. The stochastic oscillator has entered overbought territory but can stay there indefinitely during a strong uptrend. The MACD oscillator is not overbought, and the histogram peak converges with the new highs, consistent with a strengthening market. Shares of Goldman Sachs will likely experience periodic consolidations and corrections but can trend higher until the growth outlook weakens. That may not be for several years due to the interest rate cycle; falling rates will invigorate activity and support business for this and other financial services companies. Before you consider The Goldman Sachs Group, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and The Goldman Sachs Group wasn't on the list. While The Goldman Sachs Group currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

High-Flying Stock Soars 50%: Time to Buy or Wait for a Dip? 2024-07-17 11:22:00+00:00 - Joby Aviation Today JOBY Joby Aviation $7.06 -0.40 (-5.36%) 52-Week Range $4.50 ▼ $10.68 Price Target $7.50 Add to Watchlist Joby Aviation NYSE: JOBY is taking flight, but investors should wait until the next stock price dip before buying in. The recent 50% surge in stock price was driven by good news, but there has been little change in the near-term outlook. The takeaway is that Joby is improving its position, is on track to commence commercial operations next year, and is building leverage for the future. However, revenue and profits are still a long way off. Investors should only expect increased volatility now because short interest is high in this low-float stock, and insiders are selling into the rally. Get Joby Aviation alerts: Sign Up Joby Surged 20% On Good News and Short-Covering The surge in Joby's stock price is a healthy move for the market because it may shake the short sellers out. The stock price surge is driven by short-covering as much as anything else; short interest is at 10% of the share count and 20% of the float. However, the short-covering is driven by news that set Joby up to dominate the budding air taxi and regional eVTOL industry. The eVTOL industry is small today but expected to grow at a 22% CAGR to nearly $3 billion by 2034. The first news piece came out in late April; Joby plans to expand its manufacturing facility. The expansion will double the flagship facility's output to about twenty-five vehicles annually. It will be operational next year, just in time for the commencement of commercial operations in the US. That got the stock up 25% in a matter of days. A favorable quarterly report followed that news, compounded by an acquisition, FAA approval of software systems, and a successful first-of-its-kind test flight. The acquisition is for Xwing. Xwing is the leader in fully autonomous air flight and has been operational since 2020. The company’s software systems enable autonomous, gate-to-gate operations; more than 250 flights and 500 landings have been completed. Joby is after the Superpilot software. It is expected to aid piloted flights today and lead to autonomous flight down the road. The FAA approval is for the Elevate OS software system. Elevate OS is a suite of tools, platforms, and consumer applications that support on-demand, hi-tempo air-traffic operations. It will facilitate the company's commercial operations and meshes well with the Xwing Superpilot acquisition. Joby Aviation Cements Leadership Position With Hydrogen-Powered Flight Joby Aviation MarketRank™ Stock Analysis Overall MarketRank™ 0.51 out of 5 Analyst Rating Moderate Buy Upside/Downside 7.9% Upside Short Interest Bearish Dividend Strength N/A Sustainability N/A News Sentiment 0.56 Insider Trading Selling Shares Projected Earnings Growth Growing See Full Details The short-covering rally was kicked into overdrive when Joby announced a first-of-its-kind for the industry. That is a 523-mile eVTOL journey powered by a hydrogen fuel cell. The news is critical because hydrogen fuel cells are among the cleanest green energy technologies and result in only water as an emission. The news is also significant because Joby used an existing airframe and infrastructure to build and operate the vehicle. Perhaps as important, the flight used only 90% of the fuel capacity, setting the vehicle and company up to conduct regional flights in addition to localized air taxi service. Analyst interest in Joby is light but bullish. MarketBeat.com tracks eight analysts whose consensus is Moderate Buy. The hydrogen-powered flight news sparked the most recent update. It came from Canter Fitzgerald, reiterating an Overweight rating and a $10 price target. The $10 price target is the highest issued by Wall Street analysts, implying a 50% upside for the stock. The Technical Outlook: Joby Rockets Higher, but Critical Resistance Is in Play The price action in Joby stock is rocketing higher, gaining more than 50% since late April and 35% in July. Rising volume supports the action, which may send it higher. The risk is that significant resistance exists at the $7 level and impacts the outlook. The market could break through resistance because of the volume and strong momentum convergent with the new highs. In this scenario, a break above $7 could lead to another $2 to 40% gain in the price by the end of the year. If not, Joby shares will remain range-bound until more news is released. In that scenario, a move back to $6.50 or lower is possible. Before you consider Joby Aviation, 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 Joby Aviation wasn't on the list. While Joby Aviation currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Can This Top Insurance Stock Continue to Outperform the Market? 2024-07-17 11:20:00+00:00 - Most of the market’s attention is now centered around the technology sector, particularly those stocks dealing with the growth and global adoption of artificial intelligence. Investors could point to NVIDIA Co. NASDAQ: NVDA as the primary stock in this group, as it has delivered a rally of over 150% in 2024. However, some other sectors and stocks are also worthy of a look today. Progressive Today PGR Progressive $221.35 +11.35 (+5.40%) 52-Week Range $117.64 ▼ $223.84 Dividend Yield 0.18% P/E Ratio 22.66 Price Target $222.38 Add to Watchlist In the financial sector, kicking off the new earnings season, came bank stocks to show investors what is happening underneath the hood of the U.S. economy, in both the consumer sense and at the corporate level. A subsector within finance is insurance, and most investors aren’t aware of what is happening in that space and why it could be the next one to take the crown from the semiconductor names. Get Progressive alerts: Sign Up Today, shares of the Progressive Co. NYSE: PGR are trading lower by 3.4% after a sharp rally to start the trading session. This initially bullish reaction came after the company reported its second-quarter 2024 earnings results. However, bears came sweeping in, believing that slowing inflation may create headwinds for the company to keep delivering strong financial growth. Here’s how these beliefs could be wrong. New Home Insurance Demand Could Fuel a New Rally in Progressive Stock In Florida, roughly 15% to 20% of homeowners have thrown in the towel when it comes to home insurance, as rates have risen astronomically over the past 12 months, an amplified trend compared to the rest of the national average increase. This is the result of Florida having the fastest-growing housing market, both in price and construction activity. This could be why Warren Buffett started buying homebuilders like D.R. Horton Inc. NYSE: DHI in 2023, betting on the rising activity within the construction sector. Insurance rates take into account the national inflation rate and the value of the underlying asset, in this case, the home price. With both inputs acting against consumers, it is no surprise to see a recent massive rise in rates. While this is bad for more regional and local insurance firms, a national company like Progressive could benefit from this. Having achieved economies of scale, Progressive stock now shows a market capitalization of $122.4 billion today, showcasing the size and reach the brand has to leverage into cheaper rates compared to the competition. When looking into the company’s press release for the second quarter of 2024 earnings, investors will notice that Progressive’s property business was responsible for most of the policy growth over the past year and, therefore, the segment responsible for the financial momentum the company has built. Property policies reported 10% annual growth, above the 7% seen in auto policies, Progressive’s second largest business. A massive jump in the company’s earnings per share (EPS) drove the growth in both underwritten policies and premium increases. Going from only $0.75 EPS in 2023 to $3.94 EPS in 2024 could be a shadow of what’s to come for Progressive moving forward. Wall Street analysts now forecast 8.5% EPS growth for the next 12 months, which is unlikely to assume the potential market share grab Progressive could affect defecting homeowner insurance in Florida. Wall Street Predicts Another Rally for Progressive Stock Analysts at Bank of America want to see Progressive stock rally to their price targets, which were recently (as of July 2024) set to $276 a share, daring the stock to rally by 32% from where it trades today. Progressive MarketRank™ Stock Analysis Overall MarketRank™ 4.85 out of 5 Analyst Rating Hold Upside/Downside 1.5% Upside Short Interest Healthy Dividend Strength Weak Sustainability -1.33 News Sentiment 0.82 Insider Trading Selling Shares Projected Earnings Growth 8.54% See Full Details Progressive's free cash flow (operating cash flow minus capital expenditures) supports these forecasts. It rose from $2.4 billion in 2023 to $4.2 billion in 2024, nearly doubling the company's ability to reward shareholders and reinvest in further growth. Progressive's financials will also reveal that the company historically generates a return on invested capital (ROIC) rate above 20%, allowing investors to tap into Progressive stock's wealth-compounding abilities. Knowing that the Florida market and the overall insurance need of the U.S. could act as a further tailwind for Progressive stock, short interest collapsed by 11.7% over the past month, opening the way for bullish investors to take over instead. Some of these bulls included Progressive stock's largest shareholders, like Confluence Investment Management, which boosted its stake by 2.7% as of July 2024. While this boost may not seem much in percentage terms, it brought the asset manager's net investment up to $194.6 million today. Before you consider Progressive, 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 Progressive wasn't on the list. While Progressive currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Global chip stocks from Nvidia to ASML fall on geopolitics, Trump comments 2024-07-17 10:42:00+00:00 - Global chip stocks fell sharply, with ASML , Nvidia and TSMC posting declines amid reports of tighter export restrictions from the U.S. and a ramp-up of geopolitical tensions fueled by comments from former U.S. President Donald Trump. ASML's Netherlands-listed shares were down 11%, while Tokyo Electron shares in Japan closed nearly 7.5% lower. Arm , AMD , Marvell , Qualcomm and Broadcom closed down more than 7%. The moves came after Bloomberg on Wednesday reported that the Biden administration is considering a wide-sweeping rule to clamp down on companies exporting their critical chipmaking equipment to China. Washington's foreign direct product rule, or FDPR, allows the U.S. to put controls on foreign-made products even if they use the smallest amount of American technology. This can affect non-U.S. companies. CNBC has reached out to the U.S. State Department, the Bureau of Industry and Security, and the Office of the U.S. Trade Representative for comment on the report.

Stock market news today: S&P 500, Dow surge to record highs as blue chip index gains over 700 points 2024-07-17 06:31:00+00:00 - The Dow Jones Industrial Average (^DJI) surged more than 700 points on Tuesday to secure another all-time closing high. The benchmark S&P 500 (^GSPC) also notched another record amid growing conviction an interest rate cut is near. The blue-chip index rose more than 1.8%, thanks in part to positive earnings from UnitedHealth (UNH), which saw shares rise nearly 7%. Stocks closed in the green across the board as investors assessed better-than-expected earnings across multiple sectors, along with a retail sales surprise. The S&P 500 finished the day up about 0.6% while the tech-heavy Nasdaq Composite (^IXIC) moved up 0.2%. Bank of America (BAC) and Morgan Stanley (MS) each ended the day on positive footing. BofA's quarterly profit fell but beat estimates, while Morgan Stanley profit jumped, both offering signs of an investment banking revival. More broadly, stocks are holding onto gains after Chair Jerome Powell signaled the Federal Reserve is gearing up to start lowering rates soon, given recent solid inflation prints. Retail sales came in flat but better than expected in June, data out Tuesday showed, adding to the easing in price pressures that have boosted faith in a September cut — a prospect that has already wakened wider bullishness for stocks beyond techs. Traders were pricing in a 100% likelihood the Fed will bring down borrowing costs that month, according to CME FedWatch data. But some lawmakers have warned a Fed pivot before November's presidential election could be seen as a partisan move. At the same time, political matters continued to preoccupy a market betting that former President Donald Trump is an even clearer frontrunner for the White House after he survived an assassination attempt over the weekend. The Republican candidate's pick of Sen. J.D. Vance as his running mate is seen as strengthening his chances.

Retirees At 44 And 47? How This Couple Saved $2.2 Million To Retire And Travel The World 2024-07-17 03:00:00+00:00 - Retirees At 44 And 47? How This Couple Saved $2.2 Million To Retire And Travel The World CNBC Make It interviewed a couple who left life in the United States behind to retire early and travel abroad. Dianne and Guillermo, 47 and 44, achieved FIRE (Financial Independence, Retire Early) and decided to quit the 9-to-5 to live their dreams. Don't Miss: Warren Buffett flipped his neighbor's $67,000 life savings into a $50 million fortune — How much is that worth today? Can you guess how many retire with a $5,000,000 nest egg? – How does it compare to the average? "We had saved up $2.2 million and decided to travel the world in search of our forever home," said Dianne. Before retiring, Dianne worked as a real estate agent with a small team she led in the D.C. metro area. Guillermo spent over 20 years in the telecommunications industry and served in the Marines for four years. Before they retired, their combined income was around $270,000 annually, and by 2018, their net worth was $2.2 million, which grew to $2.6 million by 2022 while they traveled. Guillermo and Dianne were taught the importance of saving money while growing up. "My mother specifically had always talked to me about saving and retirement accounts, buying a home, making sure you had emergency money, no debt," Dianne recalled. A tragic event significantly influenced their decision to retire early. Dianne's stepfather was diagnosed with cancer, and shortly after his passing, her mother was also diagnosed with cancer. "I spent more than a year taking care of her and realized I didn't want to wait any longer to retire. I started talking with a financial advisor, found the FIRE community, and came up with a plan," Dianne said. She presented the plan to Guillermo, convincing him with detailed financial projections. Trending: How much money will a $200,000 annuity pay out each month? The numbers may shock you. The couple first settled in Mexico, where they lived for three years — a year longer than they initially planned due to the pandemic. Their living expenses were around $2,700 per month in Mexico, compared to the $7,000 monthly expenses in the U.S. After that, they wanted to explore more of Europe and settled in Lisbon, Portugal, where their monthly expenses averaged around $3,700 a month. Their financial success is due to diversified investments. Dianne shared, "We have our money mostly in real estate and Roth IRAs. We like Vanguard. We’re into index funds, which I think a lot of the FIRE community is also. So we manage our money ourselves. We don’t have a financial advisor. And we also have money in brokerage accounts and high-yield savings accounts." They have also ventured into cryptocurrency, leveraging Portugal's crypto-friendly environment. Additionally, they retained three rental properties in Virginia, providing a steady income stream. Story continues See Also: Are you richer than most people you know? Here’s the net worth you need at every age to be above average. Since retiring, they've adopted a structured daily routine. "We actually get up at six or seven in the morning and have our coffee and breakfast. We take the dogs for an hourlong walk, typically, and we come back and do stretching and exercising, which has made a huge difference not only in our physical health but our mental health as well," Dianne explained. Guillermo works on their travel videos, while Dianne manages their finances and explores new hobbies like learning about cryptocurrency and taking various lessons locally. "One of our greatest achievements is achieving FIRE, actually taking the steps, having the courage to quit the 9-5 job and to live off our investments," Dianne said. Guillermo added, "It’s so much greater than just thinking about how much money you need to accumulate. But instead, how you’re going to spend what you have now and have a healthier life, have better experiences." Their story is a testament to the power of financial discipline, smart investments, and the courage to take control of one's life. For those considering a similar path, consulting a financial advisor can provide personalized advice to help align your investments with your long-term goals. Read Next: Many are surprised by Mark Cuban’s advice for lotto winners: Cash or annuity? Rory McIlroy’s mansion in Florida is worth $22 million today, doubling from 2017 — here’s how to get started investing in real estate with just $100 "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 Retirees At 44 And 47? How This Couple Saved $2.2 Million To Retire And Travel The World originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Nvidia’s market cap will soar to $50 trillion—yes, trillion—says early investor in Amazon and Tesla 2024-07-17 02:02:00+00:00 - Nvidia’s rise has been astronomical—it’s grown its market capitalization from $1.1 trillion to $3.1 trillion in the past 12 months—and a tech investor who predicted the early success of Amazon and Tesla said this is just the beginning. “The potential scale of Nvidia in the most optimistic outcome is both way higher than I’ve ever seen before and could lead to a market cap of double-digit trillions,” James Anderson, former partner at investment giant Baillie Gifford, told the Financial Times. “This isn’t a prediction but a possibility if artificial intelligence works for customers and Nvidia’s lead is intact.” The chipmaker behind OpenAI’s ChatGPT has soared thanks to the AI boom, which has minted half-a-million new millionaires who invested in the tech that has begun to revolutionize the workplace and media consumption. Nvidia, along with tech giants Amazon, Google, Microsoft, and Apple, are worth $14.5 trillion and make up about 32% of the S&P 500. With the AI darling’s data center revenue growing at about 60%, Anderson calculated, should the pattern continue over the next decade, the company would have a market capitalization of about $49 trillion. That’s more than the entire value of every company in the S&P 500, which is roughly $45.84 trillion. Anderson estimated a 10% to 15% probability of this outcome. Anderson’s projection is a lofty one, but his hunches have proved correct before. With a go-big-or-go-home mentality, he was one of Amazon’s and Tesla’s biggest champions (for the EV giant, Anderson’s investments were second only to CEO Elon Musk’s). From 2005 to 2021, Scottish Mortgage Investment Trust, managed by Baillie Gifford, saw returns of 2,240%. It invested in Nvidia in 2016. Lingotto Investment Management, where Anderson is now an investor, has a $650 million fund with Nvidia as its largest position. Nvidia didn’t have a clear path to success when Anderson first began investing in the company, he said. It remained to be seen if it would be a gaming, crypto, or AI company. But it did have the advantage of early success, unlike Amazon and Tesla, which “didn’t start from highly profitable and dominant positions but had to get there.” In some ways, Anderson still sees Nvidia as a nimble company. “It is the long duration of the development of [graphic processing units] usage in AI—and not just AI—from excitement, through potential pauses, to transformation of industries that is most important to us,” Anderson said. Not so fast Other finance experts don’t share Anderson’s bullish take on Nvidia. Aswath Damodaran, professor of finance at New York University’s Stern School of Business, argues Nvidia is riding a wave of early AI optimism. Story continues “The momentum is clearly with Nvidia,” Damodaran told CNBC in May. “They can do nothing wrong. Everything they touch turns to gold.” Damodaran said Tesla experienced a similar rally in 2020, when its market cap soared, peaking in 2021 at $1.2 trillion, only for shares to plummet about 30% this year alone. Meta and Google also grappled with increased competition that have loosened their grip on the tech world. While Nvidia has the earnings to back up its sky-high value, the expectations for the future of the company may be too steep, he argued. Damodaran said the AI chip market is not worth $1 trillion alone, and the AI market more broadly is worth about $2 trillion or $3 trillion, meaning Nvidia would have to tap into several big AI markets to maintain and grow its value. “It's clearly a possibility,” Damodaran said. “But is it plausible? I don't think so.” It’s too early to say if Nvidia has the juice to lead Big Tech into the AI frontier in the long term, Deepwater Asset Management managing partner Doug Clinton said. Nvidia’s colossal growth may appear scary, but it’s sustainable, particularly as the demand for AI is expected to increase. “Despite all of us worrying that eventually this demand for chips will slow down, we haven't really seen that slowdown happen yet,” Clinton told Yahoo Finance last month. “And it may take longer to slow down than we think.” With Nvidia making up over 80% of the global GPU semiconductor market, the company will likely continue to ride high in the foreseeable future, Clinton said. “Can Nvidia maintain its dominant position providing the brains to these artificial intelligence models?” he said. “I think they can for the next three to five years.” This story was originally featured on Fortune.com

Is It Time To Say Goodbye To This High-Yielding REIT? 2024-07-16 23:30:00+00:00 - Is It Time To Say Goodbye To This High-Yielding REIT? Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Arbor Realty Trust (NYSE:ABR) consistently attracts investors looking for high-yield companies. With a forward dividend yield of 11.1% and a decade-plus track record of dividend raises, things look promising, but there may be more than meets the eye. This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100. Arbor Realty Trust is a mortgage REIT primarily involved in making loans to single-family realty portfolios and commercial real estate assets. Mortgage REITs tend to be more volatile than equity REITs because they are tied to interest rates, but the high yields make them appealing to watchful investors. Arbor Realty Trust manages a multibillion-dollar servicing portfolio that includes various loan types, from commercial mortgage-backed securities to mezzanine financing, bridge loans, and preferred equity arrangements. Storm Clouds Gathering The trouble with Arbor Realty Trust started several months ago when short interest in the company sharply increased. This signals investors believe the company may be headed for a sharp downturn. Arbor went on the offensive in May, issuing a release pointing out that the company had been the subject of short reports but stood by its filings and wouldn't respond to individual short reports. One of the most damning reports was issued by Viceroy Research late last year, which labeled the company "slumlord millionaires." It called Arbor the "worst of the worst," noting that the company's loan portfolio was in serious distress and the value of the collateral used to guarantee the loans was overstated. Viceroy pointed out that many loans are coming due, and refinancing options may be limited. In its report, the research firm aimed at Arbor's multifamily portfolio, stating that much of it was dilapidated and that "some properties have already been condemned and labeled as slums." Since that report, the drumbeat of concern around Arbor has only grown. Our research shows that short interest is a whopping 51%, increasing consistently since the Viceroy report was issued. That is a significant warning sign. Here's another: Last week, it was reported that federal officials are investigating Arbor over its loan practices. While this doesn't mean that everything the Viceroy wrote is correct, it is another sign that perhaps all may not be as it seems at Arbor. Analyst sentiment is mixed, but the consensus is that it will underperform. However, it's worth noting that many analysts still recommend the stock and see its potential. Story continues Private credit offers up to 20% APY. Potential accredited investors are looking to capitalize on this growing asset class. The Larger Macroeconomic Picture Aside from the issues within the company, there is a systemic weakness in multifamily lending, with more multifamily loans sliding into delinquency. In January, Freddie Mac issued a report stating that due to a greater share of loans coming due over the next several years, there is increased refinancing risk for multifamily properties. The report shows that 42% of commercial loans, an estimated $500 billion, are backed by multifamily loans. With regard to Arbor, sharp investors will want to pay attention to both the larger economic forecast, especially as it relates to interest rate cuts and Arbor’s results. If interest rates drop, Arbor's prospects for refinancing could become brighter. Last quarter, Arbor beat earnings and revenue expectations even as loan originations dropped by over 41%. It stated that it had a strong cash position with approximately $800 million in cash and liquidity. Arbor reports its second-quarter earnings within the next several weeks. We will examine how it addresses the federal investigation, the delinquency rate of its loans, and the overall loan origination rate. The stock has been down over 18% in the past year. This could represent a buying opportunity, but the risks facing this mortgage REIT are significant. Looking For Higher-Yield Opportunities? The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks... Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider. For instance, the Ascent Income Fund from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000. Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga's favorite high-yield offerings. © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. This article Is It Time To Say Goodbye To This High-Yielding REIT? originally appeared on Benzinga.com

Elon Musk announces X, SpaceX headquarters to relocate to Texas from California 2024-07-16 22:38:00+00:00 - Top CEOs are now making more than ever, report says Tech mogul Elon Musk announced Tuesday afternoon that he would be moving the headquarters of both his social media company X and SpaceX to Texas in response to a new California law signed by Gov. Gavin Newsom. Musk made the announcement in a pair of posts to the social media platform formerly known as Twitter at around 12:13 p.m. and 12:30 p.m., saying that SpaceX would be moving its headquarters from Hawthorne to Starbase, Texas, while X would relocate its headquarters from San Francisco to the tech hub of Austin. This is the final straw. Because of this law and the many others that preceded it, attacking both families and companies, SpaceX will now move its HQ from Hawthorne, California, to Starbase, Texas. https://t.co/cpWUDgBWFe — Elon Musk (@elonmusk) July 16, 2024 And 𝕏 HQ will move to Austin https://t.co/LUDfLEsztj — Elon Musk (@elonmusk) July 16, 2024 "Have had enough of dodging gangs of violent drug addicts just to get in and out of the building," Musk added in a separate post, apparently referring to issues in the neighborhood surrounding the X headquarters in the city's mid-Market Street area. Musk called the new law that banned school districts from passing policies requiring schools to notify parents if their child asks to change their gender identification as the "final straw" in his decision. "I did make it clear to Governor Newsom about a year ago that laws of this nature would force families and companies to leave California to protect their children," Musk wrote in another post on X. Musk had already moved the corporate headquarters of his electric car company Tesla to Austin from Palo Alto in 2021, though the company still has a large factory in Fremont that has expanded since that move. Musk has also previously said that he moved his private residence from California to Texas. The announcement about X comes less than two years after Musk took charge of the former Twitter social media platform in a $44 billion deal and fired its top executives. Musk also fired, laid off, or otherwise lost the majority of its workforce including engineers, content moderators, and executives in charge of making rules and enforcing them. In June 2023, Musk rebranded the platform as X and added a bright, flashing X logo to the top of the San Francisco building which houses its offices. It was removed within days after area residents complained and the city determined there was no permit obtained for the building signage.