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Google's big Pixel event was sure giving OpenAI vibes 2024-08-13 20:44:51+00:00 - Google may have taken Sam Altman's apparent dig at its event "aesthetic" into consideration. Google's Made By Google Pixel event featured dim lighting and a simple setup with wood in the background. The event aesthetic draws a sharp contrast from Google I/O and the Made By Google event last year. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Go to newsletter preferences Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement It looks like Google might have seen Sam Altman's tweet about the company's event "aesthetic." The OpenAI CEO made the apparent dig about the vibe of Google's I/O event back in May, and the tech giant seems to have switched up its event staging for its most recent Made By Google event, which took place Tuesday. Bright lights and varied colors are common at Google's events. They can be huge productions, after all. But Google seemed to have taken a page out of OpenAI's book this time around. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
Utility will pay $20 million to avoid prosecution in Ohio bribery scheme 2024-08-13 20:35:52+00:00 - AKRON, Ohio (AP) — The energy company at the center of a $60 million bribery scheme in Ohio will pay $20 million and avoid criminal charges as part of a deal with state prosecutors to resolve its role in the scandal. Akron-based FirstEnergy Corp. announced the deal Tuesday, a day after it filed the agreement with the U.S. Securities and Exchange Commission. It calls for the company to cooperate with the ongoing investigations being conducted by the state attorney general and the Summit County prosecutor’s office and also settles FirstEnergy’s involvement in a civil lawsuit filed by the attorney general in 2020. FirstEnergy will pay $19.5 million to the attorney general’s office within five business days and will pay $500,000 for an independent consultant to review and confirm unspecified “changes and remediation efforts” made by the company. Two fired FirstEnergy Corp. executives were indicted in April as part of the long-running investigation into the scheme that has already resulted in a lengthy prison sentence for a former state House speaker. Former FirstEnergy CEO Chuck Jones and former FirstEnergy Services Corp. Senior Vice President Michael Dowling were charged in relation to their alleged roles in the massive corruption case. Both men have denied any wrongdoing. Another man charged alongside them, former Public Utilities Commission of Ohio Chairman Sam Randazzo, had pleaded not guilty in both federal and state courts before dying by suicide at age 74 in April. Jones and Dowling were fired in October 2020 for violating company policies and code of conduct. Former House Speaker Larry Householder was sentenced in June 2023 to 20 years in prison for his role in orchestrating the scheme, and lobbyist Matt Borges, a former chair of the Ohio Republican Party, was sentenced to five years. Federal prosecutors have said those involved in the scheme used the $60 million in secretly funded FirstEnergy cash to get Householder’s chosen Republican candidates elected to the House in 2018 and then to help him get elected speaker in January 2019. The money was then used to win passage of the tainted energy bill, House Bill 6, and to conduct what authorities have said was a $38 million dirty-tricks campaign to prevent a repeal referendum from reaching the ballot. FirstEnergy admitted to its role in the bribery scheme as part of a July 2021 deferred prosecution agreement with the U.S. Department of Justice. The company agreed to pay $230 million in penalties and to accomplish a long list of reforms within three years in order to avoid being criminally prosecuted on a federal conspiracy charge.
3 data points that could impact how big of a Fed rate cut the market gets next month 2024-08-13 20:35:00+00:00 - Following cooler-than-expected producer price data Tuesday morning, the market's 50/50 odds between a quarter-point Federal Reserve interest rate cut in September and a half-point cut tilted further toward the bigger move. That sparked a big rally in stocks, with the Nasdaq leading the way higher and jumping more than 2% in afternoon trading. Here are the details of three important data points that can help us gauge the health of the U.S. economy and whether companies can continue to thrive. 1. Inflation The inflation numbers that got everyone so excited Tuesday were the 2.2% year-over-year increase in July's producer price index (PPI) and the ex-food-and-energy core rate gain of 2.4%. Both annual readings were higher in the prior month, and lower than expectations. While the PPI isn't as closely monitored as the CPI, the consumer price index, it is important to watch because it tracks input costs at the wholesale level and can therefore indicate potential price actions corporations may take in the future to protect profit margins. The CPI, which tracks the things consumers buy and pay for, is out Wednesday. The headline number for July, according to FactSet, is expected to remain flat at 3% on a year-over-year basis. The core rate is expected to be a bit lower at 3.2%. The cost of shelter, which has been one of the stickiest areas of consumer inflation, will be a key component to watch when the numbers are released before the opening bell. The Fed has indicated that shelter costs weigh heavily in their thinking on rate cuts. While still elevated, shelter has recently been trending lower. We'll see Wednesday morning. Thursday's brings the latest report on retail sales. 2. Earnings Home Depot on Tuesday provided another look at the economy. The home improvement retailer cut its full-year outlook for same-store sales, or what analysts refer to as comps. Management blamed "higher interest rates and greater macroeconomic uncertainty" for pressuring consumer spending on home improvement projects. The Dow stock initially traded lower but then turned higher. That was a sensible reversal, seeing as Fed policy rates are, indeed, expected to move lower, which should make mortgages and home equity lines of credit more affordable down the road. That's a positive for Home Depot and Club name Stanley Black & Decker . 3. Spending Stifel said its most recent U.S. consumer survey indicates some of the same consumer concerns flagged by Home Depot. "Spending intentions remain positive but have weakened considerably over the last six weeks compared to YTD averages through late June," the analysts said, adding that back-to-school spending plans point to a decline versus last year. "Spending intentions weakened across nearly all income levels," Stifel said in a note late Monday. The most notable hit was seen in consumers making less than $50,000 per year. Those making over $75,000 per year expect to increase their spending but at a slower rate than we've seen recently. The Stifel analysts also noted that consumers are looking to trade down to less expensive options and private-label brands. Trade-down intentions were most pronounced in the packaged food category. In line with our Club view, they see Costco as a big winner — after all the membership club not only provides amazing value by selling name brands in bulk, but it also has incredible private label offerings through its Kirkland Signature line. The intense focus on packaged food could bode well for Amazon as well. The analysts said, "Since 2019, Amazon and Costco have gained the most share of U.S. grocery sales, driving 23% of category growth despite accounting for 12% of U.S. grocery sales." Bottom line The U.S. is a consumer-driven economy, and private consumption generates about two-thirds of American gross domestic product. So, spending intentions and inflation levels are critical to predicting the path of economic growth — and in turn, the Fed's next move. The recent data certainly supports the idea of a rate cut at the Fed's mid-September meeting. However, that's weeks away, we know things can turn on a dime in the data and the stock market. Lower rates can certainly impact the stock market — but when it comes to picking individual stocks, we remain focused on earnings. Lowe's reports next week, and we'll see if management sees a consumer headwind similar to Home Depot. If the complete give-back of the recent rally in the small-cap Russell 2000 , while the broader S & P 500 rebounded, tells us anything, it's that a move made on rate expectations is only sustainable should lower rates translate into higher earnings. That's happening for the bigger firms but generally not for the smaller Russell 2000 companies — which are far more sensitive to the economy and don't always do well when growth is slowing, even if funding becomes more affordable. (Jim Cramer's Charitable Trust is long SWK, COST, AMZN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. People walk along Wall Street outside of the New York Stock Exchange (NYSE) on August 05, 2024, in New York City. Spencer Platt | Getty Images News | Getty Images
Fire sparks Georgia nuclear plant alert, but officials say no safety threat as reactors unaffected 2024-08-13 20:29:29+00:00 - WAYNESBORO, Ga. (AP) — Georgia’s largest nuclear plant declared an emergency alert Tuesday after an electrical fire. The fire, described as small by Georgia Power Co. spokesperson John Kraft, broke out about noon and threatened an transformer that supplies electricity to one of the complex’s two older nuclear reactors, Vogtle Unit 2. The fire was put out by plant employees, Georgia Power Co. officials said, and the alert ended just after 2:30 p.m. Dave Gasperson, a U.S. Nuclear Regulatory Commission spokesperson, said the fire was contained and “did not affect any of the plant’s operating systems.” That federal agency oversees nuclear power plants. Gasperson said the commission’s onsite inspector monitored the situation. Officials said the fire did not threaten the safety or health of employees or members of the public and that all four of the nuclear reactors onsite continued to produce electricity at full power. An alert is the second-least serious category of emergency out of four categories designated by the U.S. Nuclear Regulatory Commission, an agency that oversees nuclear power plants. That category could reduce a plant’s level of safety but isn’t supposed to affect the public. The plant returned to normal operations after terminating the alert. Georgia Power said workers are coordinating recovery with federal, state and local officials. Georgia Power owns the plant along with partners Oglethorpe Power Corp., Municipal Electric Authority of Georgia and Dalton city utilities. It supplies electricity to almost all Georgians, as well as some utilities in Florida and Alabama. The two older nuclear reactors were completed in 1987 and 1989. If they lose primary electricity from the outside grid, as well as backup electricity from a diesel generator, the reactors can overheat and melt down. Vogtle’s two newer nuclear reactors are designed to avoid a meltdown from a power loss. The two new reactors were completed this year and are the first new reactors built from scratch in the United States in decades. They cost the owners $31 billion, finishing seven years late and $17 billion over budget. Add in $3.7 billion that original contractor Westinghouse paid Vogtle owners to walk away from construction, and the total nears $35 billion.
Top Republicans call on Trump to stop insulting Harris, refocus on policy 2024-08-13 20:27:00+00:00 - Republican presidential candidate former President Donald Trump speaks during a press conference at his Mar-a-Lago estate on August 08, 2024, in Palm Beach, Florida. Former President Donald Trump is facing a wave of calls from Republican supporters to focus his political attacks against Vice President Kamala Harris on policy critiques and to scale back his ad hominem insults and conspiracy theories. "The path forward is to focus on policy. Those are three words for the Republican Party that I think is a path to success: Focus on policy," former GOP presidential candidate Vivek Ramaswamy said Tuesday on NPR. "I think Donald Trump has a strong case on all of those counts, and I think he and the Republican Party would be well served to focus on the policy contrasts," said Ramaswamy, who endorsed Trump after dropping his own White House bid earlier this year. "The winning formula for President Trump is very plain to see: It's fewer insults, more insights and that policy contrast," Kellyanne Conway, a former Trump White House advisor, said Monday in a Fox News interview. Conway, who managed Trump's winning 2016 campaign, appeared with fellow Trump White House alum Larry Kudlow, who also had some advice for Trump: "Don't wander off, don't call her stupid and all kinds of names, stay on message." Pleas like these from loyal Trump supporters have echoed through Republican circles in recent days, as the party grapples with the new dynamics of a presidential race against Harris, three weeks after President Joe Biden dropped out of the race. As Trump tries to pivot, his talking points against Harris frequently devolve into personal attacks. They include making false claims about her racial identity, insulting her intelligence and commenting on her appearance. He has also promoted false conspiracy theories about the crowds at Harris' huge rallies. "When Trump attacks Harris personally rather than on policy, Harris' support among swing voters rises, particularly among women. It's just a fact of life, right now," Peter Navarro, a former Trump White House aide, said on the conservative WarRoom podcast Monday. Navarro is a loyal Trump ally who recently served four months in federal prison for defying a congressional subpoena in the Jan. 6 Capitol insurrection probe. "You've got to make this race not on personalities," former Republican House Speaker Kevin McCarthy said earlier Monday in an interview on Fox News. "Stop questioning the size of her crowds and start questioning her positions."
How major US stock indexes fared Tuesday, 8/13/2024 2024-08-13 20:25:30+00:00 - U.S. stocks rose to one of their best days of the year as Wall Street relaxed after the first of several highly anticipated reports on the economy this week came in better than expected. The S&P 500 rallied 1.7% Tuesday after the government reported inflation at the wholesale level slowed last month by more than anticipated. The Dow Jones Industrial Average gained 1%, and the Nasdaq composite climbed 2.4%. Starbucks soared after naming Brian Niccol, the head of Chipotle, as its new CEO. Treasury yields eased ahead of more reports this week on inflation and retail sales. On Tuesday: The S&P 500 rose 90.04 points, or 1.7%, to 5,434.43. The Dow Jones Industrial Average rose 408.63 points, or 1%, to 39,765.64. The Nasdaq composite rose 407 points, or 2.4%, to 17,187.61. The Russell 2000 index of smaller companies rose 33.11 points, or 1.6%, to 2,095.19. For the week: The S&P 500 is up 90.27 points, or 1.7%. The Dow is up 268.10 points, or 0.7%. The Nasdaq is up 442.30 points, or 2.6%. The Russell 2000 is up 14.28 points, or 0.7%. For the year: The S&P 500 is up 664.60 points, or 13.9%. The Dow is up 2,076.10 points, or 5.5%. The Nasdaq is up 2,176.26 points, or 14.5%. The Russell 2000 is up 68.12 points, or 3.4%.
Can Intuitive Surgical Run Higher on Rising Earnings Estimates? - Intuitive Surgical (NASDAQ:ISRG) 2024-08-13 20:25:00+00:00 - Investors might want to bet on Intuitive Surgical, Inc. ISRG, as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook. Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Intuitive Surgical, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year. Current-Quarter Estimate Revisions The company is expected to earn $1.65 per share for the current quarter, which represents a year-over-year change of +13.01%. The Zacks Consensus Estimate for Intuitive Surgical has increased 6.14% over the last 30 days, as 10 estimates have gone higher compared to no negative revisions. Current-Year Estimate Revisions For the full year, the company is expected to earn $6.67 per share, representing a year-over-year change of +16.81%. The revisions trend for the current year also appears quite promising for Intuitive Surgical, with 11 estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 8.9%. Favorable Zacks Rank The promising estimate revisions have helped Intuitive Surgical earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Bottom Line Intuitive Surgical shares have added 6.5% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects. To read this article on Zacks.com click here.
Auto workers union seeks NLRB investigation of Trump and Musk comments about firing striking workers 2024-08-13 20:24:21+00:00 - DETROIT (AP) — The United Auto Workers union has filed unfair labor practice charges against Republican presidential nominee Donald Trump and Tesla CEO Elon Musk after the two discussed on social media about Musk supposedly firing striking workers. In documents filed Tuesday with the National Labor Relations Board, the union alleges that both men interfered with workers who may want to exercise their right to join a union. The NLRB said it would look into the charges, which are a request for the agency to investigate. UAW President Shawn Fain, whose union has endorsed Democrat Kamala Harris, said in a statement that Trump is anti-labor. “Both Trump and Musk want working class people to sit down and shut up, and they laugh about it openly,” Fain said. Brian Hughes, a senior advisor with the Trump campaign, called the allegations “frivolous” and a “shameless political stunt” designed to erode Trump’s strong support among American workers. The NLRB said it would investigate the complaints, one filed against the Trump campaign and the other naming Tesla Inc., the electric vehicle, battery and solar panel manufacturer based in Austin, Texas, and led by Musk. The charges stem from statements made by Trump Monday night during a conversation between the two men on X, the social media platform Musk now owns. The former president spent much of the discussion that lasted more than two hours focused on his recent assassination attempt, illegal immigration and plans to cut government regulations. But during a discussion about government spending, Trump praised Musk for firing workers who went on strike. The UAW contends this could intimidate workers for the Trump campaign or at Tesla who might want to join a union. “You’re the greatest cutter,” Trump told Musk. “I look at what you do. You walk in and say, ‘You want to quit?’ I won’t mention the name of the company but they go on strike and you say, ’That’s OK. You’re all gone.’” Musk said, “Yeah,” and laughed while Trump was talking. It wasn’t clear what employees Trump was referring to. In June, eight former workers at SpaceX, Musk’s rocket company, sued the company and Musk, alleging he ordered them fired after they challenged what they called rampant sexual harassment and a hostile “Animal House”-style work environment at the company. In addition, the NLRB determined that a 2018 Twitter post by Musk unlawfully threatened Tesla employees with the loss of stock options if they decided to be represented by a union. Three judges on the 5th U.S. Circuit Court of Appeals in New Orleans upheld that decision, as well as a related NLRB order that Tesla rehire a fired employee, with back pay. But the full 5th Circuit later threw out that decision and voted to hear the matter again. Sanjukta Paul, a law professor at the University of Michigan, said the UAW charges have real substance because the comments from Trump and Musk could “chill” efforts by workers to act collectively, including union organizing, or just getting together to improve working conditions. “You’re approvingly describing, you’re wholeheartedly commending the blatant violation of our main federal labor statute,” she said. “It would constitute interference with protected rights.” Marick Masters, a business professor emeritus at Wayne State University who follows labor issues, said the UAW’s move “puts the spotlight on Trump and attempts to put him on the defensive in terms of his attitude and demeanor toward unions.” He added that the union is watching Musk’s comments because it has targeted Tesla’s U.S. factories for organizing drives.
Ohio Officer Is Charged With Murder in Shooting of Pregnant Black Woman 2024-08-13 20:15:00+00:00 - A police officer in Ohio was indicted on Tuesday on murder charges in the fatal shooting last year of a pregnant Black woman in the parking lot of a supermarket. The officer, Connor Grubb, 29, faces four counts each of murder and felonious assault and two counts of involuntary manslaughter, Franklin County court records show. The charges came nearly a year after the woman, Ta’Kiya Young, 21, was shot in her car outside a Kroger supermarket in Blendon Township, Ohio, after a store worker had accused her of stealing bottles of alcohol in an episode that drew protests and investigations. Police body-camera footage from Aug. 24, 2023, showed two unidentified officers walk up to Ms. Young’s vehicle and tell her not to leave. Within a few moments, Ms. Young is seen in the video turning the wheel, and the car inches forward, appearing to hit a police officer. One of the officers then fired a single a shot through the windshield, striking Ms. Young, the video shows.
Trump and Harris both want no taxes on tips. Here's why policy experts don't like the idea 2024-08-13 20:13:00+00:00 - U.S. Vice President Kamala Harris and Republican presidential nominee and former U.S. President Donald Trump. Former President Donald Trump and Vice President Kamala Harris both want to end taxes on tips — and some policy experts have already criticized the idea. Harris expressed support for tax-free tips at a rally on Saturday in Las Vegas. Her comments come roughly two months after Trump shared a similar idea, also at a rally in the service economy hotbed. Nevada is a key battleground state where the hospitality sector accounts for roughly one-quarter of the workforce, according to the state's June employment data. "It is my promise to everyone here, when I am president, we will continue to fight for working families, including to raise the minimum wage and eliminate taxes on tips for service and hospitality workers," Harris said at her rally. More from Personal Finance: Vance wants $5,000 child tax credit that could be difficult Trump, Vance pitch presidential influence on Fed policy Walz vs. Vance: What candidates could mean for your wallet In 2023, there were roughly 4 million U.S. workers in tipped occupations, representing 2.5% of all employment, according to estimates from The Budget Lab at Yale University. Generally, tipped workers are lower-income individuals, and some 37% weren't subject to federal income tax in 2022, the report found. As a rule, employed workers who make less than their standard deduction don't owe federal income taxes. Not taxing tips is "a fairly narrowly targeted tax exemption," said Garrett Watson, senior policy analyst and modeling manager at the Tax Foundation. Still, the idea has some bipartisan support in Congress with a bill introduced in the Senate in July and a House companion bill.
What needs to happen to keep the market comeback going — plus, our new Starbucks price target 2024-08-13 19:46:00+00:00 - Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market comeback: Stocks are having a strong day, boosted by the encouraging wholesale inflation data released earlier Tuesday. At roughly 5,420 on the S & P 500 , the broader market has fully recovered all its steep losses related to the so-called "yen carry trade" from last Monday . In addition, the S & P 500 is almost back to where it was before the soft July jobs report on Aug. 2 sparked the recent "economic growth scare," which we have argued was premature. Of course, to keep the comeback going, we'll need to see inflation data stay benign when the consumer price index report comes out Wednesday, along with good July retail sales and initial jobless claims data Thursday. New PT for Starbucks: The standout in the market Tuesday is Starbucks , which is up 22%. The coffee chain is having its best day since its initial public offering in 1992 after making a leadership switch . Laxman Narasimhan stepped down as CEO effective immediately and Chipotle CEO Brian Niccol is set to take over in September. The news is a clear win for Starbucks shareholders, a best-case scenario given Niccol's strong track record and great reputation as a leader and operator. The announcement is also winning over Wall Street, with three firms already upgrading their rating on Starbucks' stock to a buy or buy-equivalent. Here's some of what analysts at those shops had to say: Baird: "While we acknowledge that near-term results could remain challenged as the company navigates a difficult economy, we now expect sentiment on SBUX to be positive as investors anticipate better fundamentals for the company to emerge over the next 12+ months." Piper Sandler: "We think it is hard to overstate what a 'big deal' this is and will likely prove to be for the stock over time, and as such, we would be buyers of SBUX this morning (even with it up 18% intraday, with this writing)." Cowen: "Starbucks picks up a hall of fame restaurant CEO, and his appointment as Starbucks CEO and Chairman suggests a new era is underway." Even if the company reports lackluster results over the next few quarters, the market should give the company a pass until it gets a better idea of Niccol's turnaround strategy. With sentiment drastically improving, we think the stock can carry a higher price-to-earnings multiple as we wait more from him. As a result, we are increasing our price target to $100 a share from $90. Up next: We're in a small air pocket of earnings as no major companies report Tuesday night. While Chili's Grill & Bar owner Brinker International and Cardinal Health report before the opening bell Wednesday, more attention will be on the consumer price index report at 8:30 a.m. ET. The current consensus forecast is that the index rose 3% year over year in July and 3.2% at the so-called core level, which excludes volatile food and energy prices. And don't forget, our Monthly Meeting is at noon ET Wednesday. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.
Struggling COVID-19 Vaccines From AstraZeneca, BioNTech/Pfizer, Moderna Cut Incidence Of Arterial Thromboses That Cause Heart Attacks, Strokes, British Study Shows - AstraZeneca (NASDAQ:AZN), Moderna 2024-08-13 19:39:00+00:00 - Researchers from the Universities of Cambridge, Bristol, and Edinburgh have revealed that COVID-19 vaccinations may significantly reduce the incidence of arterial thromboses, a leading cause of heart attacks and strokes. The study, published in Nature Communications and supported by the British Heart Foundation Data Science Centre at Health Data Research U.K., analyzed de-identified health records of 46 million adults provided by NHS England. Using health records from 45.7 million adults in England between December 2020 and January 2022, the study compared the incidence of thrombotic and cardiovascular complications up to 26 weeks after first, second, and booster doses of brands and combinations of COVID-19 vaccines used during the U.K. vaccination program with the incidence before or without the corresponding vaccination. The incidence of common arterial thrombotic events (mainly acute myocardial infarction or heart attack and ischaemic stroke) was generally lower after each vaccine dose, brand, and combination. There was a higher incidence of previously reported rare harms after vaccination, including: Vaccine-induced thrombotic thrombocytopenia after the first AstraZeneca Plc’s AZN vaccine (ChAdOx1). vaccine (ChAdOx1). Myocarditis and pericarditis (inflammation of the heart muscle and outer lining) after the first, second, and transiently after booster mRNA vaccination, including BioNTech SE BNTX / Pfizer Inc PFE BNT-162b2 and Moderna Inc’s MRNA vaccine, mRNA-1273. For all vaccine brands and doses, adjusted hazard ratios (aHRs) were lower in the first few weeks than in later weeks. The aHR profiles for acute myocardial infarction and ischaemic stroke were similar to those of composite arterial thrombosis for all vaccine brands and doses. Similarly, the incidence of common venous thrombotic events (mainly pulmonary embolism and lower limb deep venous thrombosis) was lower after vaccination. These findings support the wide uptake of future COVID-19 vaccination programs. In July, AstraZeneca declared a worldwide cessation of its COVID-19 vaccine, Vaxzevria, due to an “excess of updated vaccines.” Earlier, Pfizer raised its 2024 guidance to $8.5 billion from $8 billion but reaffirmed that $5 billion would come from BioNTech’s partnered Comirnaty-COVID-19 vaccine. Moderna also lowered its 2024 sales guidance on Thursday due to weaker demand for its COVID-19 vaccines. Read Next: Photo via Wikimedia Commons
Terminator: Survivors Pushed To 2025 — 'We Believe This Is The Right Call,' Developer Says - Netflix (NASDAQ:NFLX) 2024-08-13 19:38:00+00:00 - Developer Nacon announced the release of Terminator: Survivors, early access on Steam, has been postponed to 2025. Originally scheduled for Oct. 24, 2024, the delay is intended to ensure the game meets the expectations of its growing fanbase. See Also: This Is The Reason Behind Nintendo Switch 2’s Delay To March 2025, Report Says The announcement was made via the studio's official X account, where Nacon acknowledged the disappointment that might arise from the delay but emphasized its commitment to delivering a high-quality product. "In the long term, we believe this is the right call," the statement read. Dear Survivors, we have an important update about Terminator: Survivors. pic.twitter.com/LkVJyEHriX — Terminator: Survivors (@SurviveTheT800) August 12, 2024 Terminator: Survivors was first introduced to the public in 2022 as a cooperative multiplayer game set in the Terminator universe. The game's narrative takes place after the events of Judgment Day but before the rise of John Connor's resistance against Skynet. What's In Store For Terminator Fans Regarding the storyline, creative Director Marco Ponte revealed: "This takes place in a yet unexplored timeline of the Terminator universe," Ponte said earlier this year, "with a completely original storyline that includes both famous characters and new ones, and where you'll learn about the beginnings of John Connor's resistance." The delay is part of a broader industry trend where developers are increasingly willing to push back release dates to focus on game quality. "To realize our vision, and to make sure to deliver the game that fits your expectations, we need some additional time," the studio stated. In the meantime, fans of the Terminator franchise can look forward to the upcoming anime adaptation, Terminator Zero, which is set for release on Aug. 29, 2024. The adaptation has already drawn attention due to a significant animation leak at Netflix. Read Next: Photo: Courtesy of Nacon via Steam.
Federal board urges stricter safety rules for loading and dispatching charter flights like air tours 2024-08-13 19:26:22+00:00 - WASHINGTON (AP) — A federal safety agency is recommending that air tours and other commercial aircraft operators be required to have certificated dispatchers to help pilots plan their flights. The National Transportation Safety Board said Tuesday that and other recommendations are based on a study of more than 500 accidents, some of them fatal. The NTSB said it began the study after seeing a “cluster of safety issues” from investigations of crashes between 2010 and 2022. The recommendations would not apply to major airlines, which operate under the most stringent U.S. rules. The NTSB noted that historically airlines have had lower accident rates than charter operations. The board said the Federal Aviation Administration should require air tours, commuter services, air ambulances and business jet charters to employ certificated flight dispatchers. The board said it found 12 accidents with a total of 45 deaths where flight dispatch was “deficient” because current regulations don’t require people performing the work to meet particular standards. The NTSB said it found four accidents and 11 deaths involving small planes that were not loaded in a safe manner. It recommended expanding a current rule on weight and balance documentation to single-engine planes. The board also repeated a previous recommendation that planes used in non-scheduled commercial operation be outfitted to collect data that indicates when pilots fail to follow proper procedures. The FAA said it takes NTSB recommendations seriously and will respond “within an appropriate timeframe.”
Texas judge in X's lawsuit against advertisers recuses himself after report he owned Tesla stock 2024-08-13 19:19:00+00:00 - The judge overseeing X's lawsuit against advertisers has recused himself following a news report that showed he owned shares of Tesla . In a recusal notice dated Aug. 13, U.S. District Judge Reed O'Connor in Texas backed out of X's case against the World Federation of Advertisers, which was filed last week. The judge didn't say why he was removing himself from the suit. X, formerly known as Twitter, is owned by Elon Musk, who is also the CEO and largest shareholder in Tesla. On Monday, NPR reported that O'Connor had owned shares of Tesla in 2022, the date of his last available disclosure, posing a potential conflict of interest. Calls for comment to the court's clerk weren't immediately returned. In X's lawsuit, the company accused a number of advertisers of engaging in antitrust behavior when they stopped ad campaigns on the site. Companies named include Unilever, Mars, CVS Healthcare and Orsted in Europe. In response to the suit, the WFA said it was suspending the operations of its Global Alliance for Responsible Media nonprofit initiative. The new judge assigned to the case, Judge Ed Kinkeade, issued an order on Tuesday that said either party would need to justify each request to the court to keep files submitted under seal and out of the public view. O'Connor is a former aide to U.S. Sen. John Cornyn, R-Texas, and a former federal prosecutor in North Texas. For now, he remains the judge in another lawsuit filed by X against Media Matters for America, filed in November after the progressive watchdog published a report about Nazi content running on the app next to ads from companies. WATCH: Tesla faces tough competition in China and slow EV adoption in the U.S.
Google rolls out Pixel 9 phones earlier than usual as AI race with Apple heats up 2024-08-13 19:15:41+00:00 - MOUNTAIN VIEW, Calif. (AP) — Google on Tuesday unveiled its next generation of Pixel phones, providing the maker of Android software a head start on the next iPhone in the race to bring more artificial-intelligence services to devices that have become people’s constant companions. The showcase held near Google’s Mountain View, California, headquarters took place two months earlier than when the company typically rolls out the next models in its Pixel phone line-up, which made its debut eight years ago. Although Pixel phones still represent a sliver of worldwide smartphone sales, they are still closely watched because they serve as Google’s platform for demonstrating the latest advances in the Android operating system that powers virtually every phone not made by Apple. And Google left little doubt that the Pixel 9 phones are meant to be a vessel for the AI technology that is expected to reshape the way people live and work, just as smartphones in general have done over the past 15 years. “We are obsessed with the idea that AI can make life easier and more productive for people,” Rick Osterloh, a Google senior vice president who oversees the Pixel phones, said Tuesday. That’s similar to the theme Apple is accentuating as it prepares to make AI a centerpiece of the iPhone. That moment is expect to arrive shortly after Labor Day when Apple traditionally takes the wraps off its next iPhone. The next model, the iPhone 16, is expected to be a big attraction because it will be equipped with the special chip needed to run a suite of AI features. Those features are designed to make Apple’s virtual assistant Siri smarter and perform a wide variety of other tasks that the company is promising will bring more joy to people’s lives, while still protecting their privacy. But Apple’s plans for AI remain hazier than Google’s vision, and Google is also rolling it out more broadly, including on Samsung phones powered by Android, said Emarketer analyst Grace Harmon. That may increase the pressure on Apple next month when it unveils the next iPhone. Not surprisingly, the Pixel 9 lineup is also packed with AI technology, a shift that the Google began last October when it released that year’s model. This generation of phones will be the first centered around the Gemini technology that’s become the focal point of its push into AI. Just as Apple is aiming to do with Siri, Google has designed its Gemini assistant to be more conversational, providing it with a range of 10 different human-like voices. It’s able to handle even more tasks, especially if users are willing to give it access to email and other documents. In another move mirroring Apple, Google is equipping the Pixel 9 lineup with a special chip enabling many AI-powered services to be handled on the device instead of remote data centers, with the aim of boosting personal privacy and security. In on-stage demonstrations Tuesday, the Gemini assistant speaking in a voice called “Ursa” was able to come up with helpful ideas for a fun way to use invisible ink when asked to come up with creative ideas. But the Gemini assistant also stumbled when shown a picture of a poster for singer Sabrina Carpenter, and when asked to let the questioner know when she was performing a concert in the area. After coming up blank on the first two requests, the Gemini assistant provided the requested information. The Pixel 9 phones also will feature “Magic Editor,” AI technology capable of completely transforming pictures by quickly and seamlessly adding a person who wasn’t in the original photo, or by altering the photo’s landscape or background. The more advanced Gemini Assistant will require a $20 monthly subscription that will be free for one year for all buyers of the next Pixel 9 phones, which will begin shipping Aug. 22 before becoming more widely available next month. The $240 benefit that Google is offering with a free one-year subscription to its Gemini Advanced service makes it more likely Apple won’t be able to charge for its suite of AI services, Emarketer’s Harmon said. The standard Pixel 9 will sell for $800, a $100 increase from last year, while the Pixel 9 Pro will sell for $1,000 or $1,100, depending on the size. The next generation of a foldable Pixel phone that Google introduced last year will sell for $1,800. The event also signaled that Google intends to conduct business as usual even as its internet empire is being threatened by a judge’s recent decision declaring its dominant search engine to be an illegal monopoly. The landmark ruling will trigger another round of court hearings to determine the measures that Google must take to create a more competitive market – a process that could result in Google being banned from engaging in some deals or, in the drastic scenario, being ordered to spin off its Android software or relinquish other key pillars bolstering the nearly $2 trillion market value of its corporate parent, Alphabet Inc. Besides its latest phones, Google also took aim at several other popular Apple products with its next Pixel Watch and wireless earbuds.
Artiva Biotherapeutics' Investigational Scalable Cell Therapies For Autoimmune Disorders, Analyst Initiate With Bullish Pitch - Artiva Biotherapeutics (NASDAQ:ARTV) 2024-08-13 19:10:00+00:00 - In July, Artiva Biotherapeutics, Inc. ARTV priced its upsized initial public offering of 13.92 million shares at $12.00 per share, with gross proceeds of approximately $167.0 million. Artiva is a clinical-stage biotechnology company focused on developing cell therapies for patients with devastating autoimmune diseases and cancers. Artiva’s lead program, AlloNK, is an allogeneic, off-the-shelf, non-genetically modified, cryopreserved NK cell therapy candidate designed to enhance the antibody-dependent cellular cytotoxicity effect of monoclonal antibodies to drive B-cell depletion. AlloNK is currently in clinical trials for systemic lupus erythematosus, patients with or without lupus nephritis, and an investigator-initiated basket trial in multiple autoimmune indications. Artiva’s pipeline also includes CAR-NK candidates targeting both solid and hematologic cancers. Needham initiates coverage on Artiva and says, “Artiva is developing what we view as scalable cellular therapeutics for autoimmune disorders.” Needham notes that initial clinical results from the lupus study are expected in 2025, most probably in the first half of 2025. The analyst also sees AlloNK in lupus as the main near-term driver for Artiva. A Needham analyst estimates that AlloNK could achieve approximately $1.7 billion in global sales for treating systemic lupus erythematosus (SLE) and lupus nephritis (LN) by 2038, capturing around 20% of the market. The analyst also notes that several other companies are developing cellular therapies for SLE and LN, including other NK cell programs. Needham has initiated with a Buy rating and a price target of $23. Wedbush also initiated coverage on Artiva Biotherapeutics, noting that the company’s cell therapy is straightforward to manufacture and deliver and adaptable to different targets. Recent studies have confirmed that various cell-based therapies are effective for different autoimmune conditions, showing a link between B-cell depletion and symptom improvement. Wedbush initiated with an Outperform rating with a price target of $18. “Given the level of B-cell depletion achieved in Artiva’s B-NHL study, we believe AlloNK has the potential to drive deep and durable remissions in B-cell dependent autoimmune diseases,” Wedbush analyst added. Price Action: ARTV stock is down 0.36% at $11.18 at last check Tuesday. Photo via Shutterstock Read Next:
Should Quest Diagnostics be in Your Portfolio Now? - Quest Diagnostics (NYSE:DGX), Boston Scientific (NYSE:BSX) 2024-08-13 19:05:00+00:00 - Quest Diagnostics Inc.'s DGX sustained growth momentum within the legacy base business is poised to help it grow in the upcoming quarters. Strong progress in the company's highly specialized Advanced Diagnostics offerings is encouraging. Additionally, the cost discipline program, Invigorate, is boosting productivity through automation and AI. However, a debt-laden balance sheet and challenges from fierce competition are concerning for DGX's operations. In the past year, this Zacks Rank #2 (Buy) stock has rallied 11.3% compared with the industry's 13.6% growth and the 19.3% rise of the S&P 500 composite. The renowned provider of diagnostic information services has a market capitalization of $16.62 billion. The company's earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 3.31%. Let's delve deeper. Tailwinds Growth Momentum in the Base Business Continues: Quest Diagnostics has been experiencing robust volume growth in its core business (excluding Covid Testing), banking on the growth of new physician and hospital customers, a more favorable test mix with increased use of advanced diagnostics, continued strength in healthcare utilization as well as the ongoing return to care. The latest second quarter of 2024 also marked another strong base business growth for Physician Lab Services, driven by overall market growth and share gains on new customer wins. Added to this, the company delivered strong volume and revenue growth from its Medicare Advantage plans. PLS and hospital reference testing have been outpacing both historical trends and market growth projections. Additionally, DGX is making headway with several promising opportunities within its robust M&A pipeline, such as the recently closed acquisition of PathAI Diagnostics. Further, Quest Diagnostics' strong consumer focus is driving growth in consumer-initiated testing and expanded access to basic health care. Image Source: Zacks Investment Research Strong Potential of Advanced Diagnostics: Quest Diagnostics' Advanced Diagnostics offerings have generated robust growth in recent quarters. A key driver in Brain Health growth is the company's Alzheimer's disease portfolio, featuring the AD-Detect blood testing services and the CSF Tests for diagnosing and monitoring. The acquisition of the cancer testing company, Haystack Oncology, has strategically placed DGX in the higher-growth clinical area of ctDNA (Circulating tumor DNA) solid-tumor MRD (minimal residual disease) testing. Alongside this, the company has been expanding the pool of evidence on the clinical and economic value of ctDNA blood testing in cancer care. Furthermore, Quest Diagnostics' STEP500 somatic tumor sequencing service is gaining interest from large cancer centers. A Strategic Imperative to Drive Operational Excellence: As part of its broader strategy to drive operational improvements across the business, Quest Diagnostics strategically deploys automation and AI to improve quality, service, efficiency and the workforce experience. The company's multi-year cost excellence program, Invigorate, has consistently delivered 3% annual cost savings and productivity enhancements, acting as a shield against inflationary pressures such as rising labor and benefit costs and reimbursement challenges. In the second quarter, it enhanced the use of automation and AI to improve productivity, as well as service levels and quality. Headwinds Escalating Debt Level: At the end of the second quarter of 2024, the company had long-term debt of $3.82 billion on the balance sheet, while the cash and cash equivalent balance was only $271 million. The current portion of the debt stood much higher at $606 million, raising concerns about its liquidity position. Competitive Landscape: Quest Diagnostics faces intense competition, primarily from LabCorp, other commercial laboratories and hospitals. While pricing is an important factor in choosing a testing lab, hospital-affiliated physicians expect a high level of service, including an accurate and rapid turnaround of testing results. As a result, Quest Diagnostics and other commercial labs compete mainly on the quality of service. Estimate Trend The Zacks Consensus Estimate for Quest Diagnostics' 2024 earnings per share has moved up to $8.88 from $8.79 in the past 30 days. The consensus estimate for the company's 2024 revenues is pegged at $9.52 billion. This suggests a 2.9% rise from the year-ago reported number. Other Key Picks Some other top-ranked stocks in the broader medical space are TransMedix Group TMDX, Boston Scientific BSX and Myriad Genetics MYGN. TransMedix Group's earnings are expected to surge 242.9% in 2024. The company's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 287.5%. Its shares have soared 160.4% compared with the industry's 5.2% rise in the past year. TMDX sports a Zacks Rank #1 (Strong Buy) at present. Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 17.1% compared with the industry's 15.5%. Shares of the company have rallied 48% compared with the industry's 5.2% rise over the past year. BSX's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.2%. Myriad Genetics, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 51.3% compared with the industry's 21.4%. Shares of the company have jumped 56.9% compared with the industry's 5.2% growth over the past year. MYGN's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 213.4%. 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The 10 most affordable places to live in the U.S. based on quality of life, the job market and more 2024-08-13 19:05:00+00:00 - To afford life in a big city like San Francisco, California, you'd have to make double what most Americans earn, according to a May Moody's Analytics analysis. U.S. News and World Report released its ranking of the cities with the lowest cost of living, based on the median gross rent and annual housing costs for mortgage-paying homeowners. The ranking used data from sources including the U.S. Census Bureau, the FBI and the U.S. Department of Labor. The data was categorized into four indexes: Quality of life: How satisfied residents are with their daily lives How satisfied residents are with their daily lives Value: How comfortably the average resident of each city can afford to live within their means How comfortably the average resident of each city can afford to live within their means Desirability: Which ranked cities people would most like to live Which ranked cities people would most like to live Job market: The strength of each city's job market Each index was given a score of 0-10.
Wednesday's big CPI inflation report could mark a change in thinking for the Fed 2024-08-13 18:56:00+00:00 - Product prices as seen at Walmart. Courtesy: Walmart The news Tuesday was good for inflation, and investors hope it will get even better Wednesday when the Labor Department releases the July consumer price index report. With the score being one down, one to go on confirming that the early-year jump in prices either was a fluke or the last gasp of inflation, a positive CPI reading could mean the Federal Reserve is able to turn its gaze to other economic challenges, such as the slowing labor market. "At this point, the inflationary pressure that we saw build has really been dissipated significantly," said Jim Baird, chief investment officer at Plante Moran Financial Advisors. "Inflation is almost a nonissue at this point. There's this broad expectation that the worst is easily behind us." Like others on Wall Street, Baird expects the Fed in September to shift its focus from tight policy to tackle inflation to a somewhat easier stance to head off a potential weakening in the jobs picture. While consumers and business owners continue to express concern over high prices, the trend indeed has shifted. Tuesday's producer price index, or PPI, report for July helped confirm optimism that the elevated inflation numbers that began in 2021 and spiked again in early 2024 are in the rearview mirror. watch now The PPI report, seen as a gauge of wholesale inflation, showed prices up just 0.2% in July and about 2.2% from a year ago. That number is now very close to the Fed's 2% goal and indicative that the market's impulse for the central bank to start cutting rates is about on target. Economists surveyed by Dow Jones expect the CPI similarly to show 0.2% increases on both the all-items reading and the core measurement that excludes food and energy. However, that is projected to show respective 12-month rates of 3% and 3.2% — well below their mid-2022 highs but still a good distance from the Fed's 2% target. Still, investors are looking for the Fed at its September meeting to start cutting interest rates, considering that inflation is weakening and so is the labor market. The unemployment rate has now risen to 4.3%, a 0.8 percentage point increase over the past year that has triggered a time-tested recession flag known as the Sahm Rule. "Given the focus on the relative weakening in the labor market, given the fact inflation is coming down pretty rapidly, and I expect it will continue over the next few months, it would be a surprise if the Fed didn't start moving towards easing very quickly, presumably at the September meeting," Baird said. "If they don't at the September meeting, the market is not going to take kindly to that." Worries over slow Fed response A brief pickup in weekly initial unemployment claims, combined with other weakening economic metrics, briefly had some in the market looking for an emergency rate cut. While that sentiment has dissipated, there's still worry about the Fed being slow to ease, just as it was slow to tighten when inflation began to escalate. Another benign inflation report "makes the Fed completely comfortable that they can shift their focus away from inflation and toward labor," said Tom Porcelli, chief U.S. economist at PGIM Fixed Income. "They could have shifted their attention from inflation to labor ... months ago. There are cracks forming in the labor market backdrop." Amid the twin realities of declining inflation and rising unemployment, markets are pricing in the absolutely certainty of a rate cut at the Sept. 17-18 Fed meeting, with the only question left being how much. Futures pricing is roughly split between a quarter- or half-point reduction, and leaning heavily to the likelihood of a full percentage point reduction by the end of the year, according to CME Group calculations. However, futures pricing has been well off the mark for most of the year. Traders started the year anticipating a rapid pace of cuts, then pulled back into expecting only one or two before the latest swing in the other direction. "I'm as curious about [Wednesday's] inflation report as anyone else, but I think it would take a real outlier to change the Fed's tune from 1) shifting to labor as its focus, and 2) seriously thinking about cutting in September," Porcelli said. "They should start off aggressively. I can easily make the argument for the Fed to cut 50 basis points just to kick things off because I think they should have been cutting already. I don't think that's what they will do. They'll start it off modestly."