Business – Business News Updates https://newsdaily.business Tue, 24 Jan 2023 06:06:47 +0000 en hourly 1 https://wordpress.org/?v=6.4.3 https://newsdaily.business/wp-content/uploads/2021/02/cropped-handshake-hand-gesture-dollar-money-finance-coin_96px-32x32.png Business - Business News Updates https://newsdaily.business 32 32 Elon Musk In Tesla Tweet Trial https://newsdaily.business/2023/01/24/elon-musk-in-tesla-tweet-trial/ https://newsdaily.business/2023/01/24/elon-musk-in-tesla-tweet-trial/#respond Tue, 24 Jan 2023 06:06:47 +0000 https://newsdaily.business/2023/01/24/elon-musk-in-tesla-tweet-trial/ Elon Musk’s testimony is set to conclude on Tuesday. San Francisco: Elon Musk on Monday told jurors that his 2018 tweet about taking Tesla private at $420 a share was no joke and that Saudi Arabia’s sovereign wealth fund was serious about helping him do it. The Tesla chief returned to the witness stand to […]]]>


'Was Told Saudi Crown Prince Was On Board': Elon Musk In Tesla Tweet Trial

Elon Musk’s testimony is set to conclude on Tuesday.

San Francisco:

Elon Musk on Monday told jurors that his 2018 tweet about taking Tesla private at $420 a share was no joke and that Saudi Arabia’s sovereign wealth fund was serious about helping him do it.

The Tesla chief returned to the witness stand to answer questions from lawyers for angry investors who accuse him of costing them millions of dollars with a pair of allegedly false tweets about having the funding secured to buy them out.

A lawyer for the plaintiffs focused on Musk’s buyout figure of 420, a number that is also a popular rallying code for marijuana, which Musk uses.

“420 was not chosen because of a joke; it was chosen because there was a 20 percent premium over the stock price,” Musk said when asked if he was having a laugh when he made the tweet.

Musk added, however, that there was “some karma around 420”, though “I should question whether that is good or bad karma at this point.”

The case revolves around a pair of tweets in which Musk said “funding secured” for a project to buy out the publicly-traded electric automaker, then in a second tweet added that “investor support is confirmed.”

The tweets sent the Tesla share price on a rollercoaster ride and Musk was sued by shareholders who say the tycoon acted recklessly in an effort to squeeze investors who had bet, or “gone short,” against the company.

Musk referred to short sellers as “evil” at the trial.

“It’s difficult to appreciate just now just how much attack Tesla was under by short sellers who wanted Tesla to die,” Musk told jurors.

– ‘Done deal’ –

But Musk said he fired off the tweets at issue after learning of a Financial Times story about a Saudi Arabian investment fund wanting to acquire a stake in Tesla.

“My concern was that if they knew all of this information, then they could also potentially know about the take-private,” Musk said of the news report.

Musk testified that Saudi Arabia’s sovereign wealth fund was “unequivocally, without question” supportive of his project, adding that the head of the fund told him that the crown prince of Saudi Arabia was also on board.

“So essentially I took that to mean it was a done deal,” Musk said.

When confronted with exchanges with the Saudi fund that showed they wanted more details before committing to his buyout plan, Musk said the fund was “backpedalling”.

Musk testified that he understood the fund would do whatever it took to take Tesla private and had plenty of money to do it.

The billionaire added that even without the Saudi fund, he had the personal wealth to take Tesla private at the time, including by using his shares in SpaceX, the company he also runs.

Musk said he had shared some details of his plan with tech billionaire and Tesla investor Larry Ellison, who is among witnesses slated to testify at the fraud trial.

During testimony last week, a Harvard professor called as a witness by the plaintiffs said that Musk’s plans were “illusory” and deviated wildly from the way such mega-deals usually take place.

In his own opening remarks, Musk attorney Alex Spiro said that even though the tweets may have been a “reckless choice of words”, they were “not fraud, not even close.

“I’m being accused of fraud; it’s outrageous,” Musk said as his lawyer took over the questioning on Monday.

The tycoon’s testimony is set to conclude on Tuesday.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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2023-01-24 05:06:00

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Wall Street extends rally, powered by tech bounce https://newsdaily.business/2023/01/24/wall-street-extends-rally-powered-by-tech-bounce/ https://newsdaily.business/2023/01/24/wall-street-extends-rally-powered-by-tech-bounce/#respond Tue, 24 Jan 2023 00:05:36 +0000 https://newsdaily.business/2023/01/24/wall-street-extends-rally-powered-by-tech-bounce/ Baker Hughes falls on missing Q4 profit estimates Activist investor Elliott Management takes stake in Salesforce Chips surge on Barclay’s upgrade Indexes up: Dow 0.76%, S&P 1.19%, Nasdaq 2.01% NEW YORK, Jan 23 (Reuters) – Wall Street closed sharply higher on Monday, fueled by surging technology stocks as investors began an earnings-heavy week with a […]]]>


  • Baker Hughes falls on missing Q4 profit estimates
  • Activist investor Elliott Management takes stake in Salesforce
  • Chips surge on Barclay’s upgrade
  • Indexes up: Dow 0.76%, S&P 1.19%, Nasdaq 2.01%

NEW YORK, Jan 23 (Reuters) – Wall Street closed sharply higher on Monday, fueled by surging technology stocks as investors began an earnings-heavy week with a renewed enthusiasm for market-leading momentum stocks that were battered last year.

All three major stock indexes extended Friday’s gains, with the tech-heavy Nasdaq leading the pack, boosted by semiconductor shares (.SOX).

“(Chips are) a group that’s been depressed, so I’m not too surprised,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. “We’re going to see earnings from these companies over the next couple of weeks and that will be where the rubber meets the road.”

“It’s a group that was ripe for a rebound.”

The session marks a calm before the storm in a week jam-packed with high profile earnings reports and back-end loaded with crucial economic data.

Investors are all but certain the Federal Reserve will implement a bite-sized interest rate hike next week even as the U.S. central bank remains committed to taming the hottest inflationary cycle in decades.

“(Investors) are pretty comfortable that they’re going to see lower rate hikes from the Fed, that we are rounding the corner on inflation and interest rate hikes,” Tuz added. “Stocks can do well in that environment, especially the big growth stocks that drive the market.”

Financial markets have priced in a 99.9% likelihood of a 25 basis point hike to the Fed funds target rate at the conclusion of its two-day monetary policy meeting next Wednesday, according to CME’s FedWatch tool.

The Dow Jones Industrial Average (.DJI) rose 254.07 points, or 0.76%, to 33,629.56, the S&P 500 (.SPX) gained 47.2 points, or 1.19%, to 4,019.81 and the Nasdaq Composite (.IXIC) added 223.98 points, or 2.01%, to 11,364.41.

Of the 11 major S&P 500 sectors, all but energy (.SPNY) ended green, with tech shares (.SPLRCT) enjoying the largest percentage gain, up 2.3% on the session.

The fourth-quarter reporting season has shifted into overdrive, with 57 of the companies in the S&P 500 having posted results. Of those, 63% have delivered better-than-expected earnings, according to Refinitiv.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., December 7, 2022. REUTERS/Brendan McDermid

Analysts now see S&P 500 fourth-quarter earnings, on aggregate, dropping 3% year-on-year, nearly twice as steep as the 1.6% annual drop seen at the beginning of the year, per Refinitiv.

This week, Microsoft Corp (MSFT.O) and Tesla Inc , along with a spate of heavy-hitting industrials including Boeing CO (BA.N), 3M Co (MMM.N), Union Pacific Corp (UNP.N), Dow Inc (DOW.N), and Northrop Grumman Corp (NOC.N), are expected to post quarterly results.

The Philadelphia SE semiconductor index (.SOX) jumped 5.0%, its biggest one-day gain since Nov. 30 after Barclays upgraded the sector to “overweight” from “equal weight.”

Tesla surged 7.7% after Chief Executive Elon Musk took the stand in his fraud trial related to a tweet saying he had backing to take the electric automaker private.

Baker Hughes Co (BKR.O) missed quarterly profit estimates due to inflation pressures and ongoing disruptions due to Russia’s war on Ukraine. The oilfield services company’s shares dipped 1.5%.

Cloud-based software firm Salesforce Inc (CRM.N) jumped 3.1% following news that activist investor Elliot Management Corp has taken a multi-billion dollar stake in the company.

Spotify Technology SA (SPOT.N) joined the growing list of tech-related companies to announce impending job cuts, shedding 6% of its workforce as rising interest rates and the looming possibility of recession continue to pressure growth stocks. The music streaming company’s shares rose 2.1%.

On the economic front, the U.S. Commerce Department is expected to unveil its initial “advance” take on fourth-quarter GDP on Thursday, which analysts expect to land at 2.5%.

On Friday, the wide-ranging personal consumption expenditures (PCE) report is due to shed light on consumer spending, income growth, and crucially, inflation.

Advancing issues outnumbered declining ones on the NYSE by a 2.77-to-1 ratio; on Nasdaq, a 1.73-to-1 ratio favored advancers.

The S&P 500 posted 11 new 52-week highs and no new lows; the Nasdaq Composite recorded 82 new highs and 19 new lows.

Volume on U.S. exchanges was 11.99 billion shares, compared with the 10.62 billion average over the last 20 trading days.

Reporting by Stephen Culp; Additional reporting by Shreyashi Sanyal and Johann M Cherian in Bengaluru
Editing by Marguerita Choy

Our Standards: The Thomson Reuters Trust Principles.



Read More:Wall Street extends rally, powered by tech bounce

2023-01-23 23:46:00

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Dow rises 200 points, Nasdaq jumps 1% as investors weigh next Fed rate move https://newsdaily.business/2023/01/23/dow-rises-200-points-nasdaq-jumps-1-as-investors-weigh-next-fed-rate-move/ https://newsdaily.business/2023/01/23/dow-rises-200-points-nasdaq-jumps-1-as-investors-weigh-next-fed-rate-move/#respond Mon, 23 Jan 2023 18:04:40 +0000 https://newsdaily.business/2023/01/23/dow-rises-200-points-nasdaq-jumps-1-as-investors-weigh-next-fed-rate-move/ Stocks rose Monday as investors contemplated a potential slowdown in rate hikes from the Federal Reserve and braced for a busy week of earnings. The Dow Jones Industrial Average jumped 287 points, or 0.86%, while the S&P 500 added 1.3%. The Nasdaq Composite surged 2%. Semiconductor stocks and shares of Tesla and Apple gained on […]]]>


Citi's Kristen Bitterly: Recent equity rally only compels Fed to step up hawkish rhetoric

Stocks rose Monday as investors contemplated a potential slowdown in rate hikes from the Federal Reserve and braced for a busy week of earnings.

The Dow Jones Industrial Average jumped 287 points, or 0.86%, while the S&P 500 added 1.3%. The Nasdaq Composite surged 2%.

Semiconductor stocks and shares of Tesla and Apple gained on hopes that a reopening in China would boost their businesses. Both big tech names recently grappled with temporary shutdowns and blows to production as the country dealt with surging Covid-19 cases.

Investors have begun weighing the possibility that the Fed is preparing to slow the pace of its inflation-fighting rate hikes after months of aggressive tightening. Economic data released last week showed a decline in wholesale prices and retail sales, along with commentary from central bank officials, seemed to signal a slowdown.

Remarks from Fed Governor Christopher Waller Friday seeming to favor a quarter percentage point rate increase at the next meeting lifted investors’ hopes for a downshift. A Wall Street Journal report Sunday raised the possibility of a spring pause to rate increases — a sign that the Fed could be nearing the end of its rate hiking campaign.

“Bulls are running with the near-term momentum, the ‘soft landing’ narrative, and it’s hard to argue with recent price action,” wrote Jonathan Krinsky, BTIG’s chief market technician in a note Monday. “On the other hand, long term trends are still somewhat bearish, and we are always skeptical of such a widely watched ‘breakout’, especially after big run.”

Markets have priced in a 99.7% chance of a 25-basis point hike, according to CME Group data, which would bring the interest rate to a targeted range of 4.5%-4.75%.

Earnings reports could keep the market on edge, with about 40% of the Dow scheduled to release their latest financial results and offer more insight into how companies are weathering inflation and interest rates. Some big names on deck include Microsoft, IBM, Tesla, Visa and Mastercard.



Read More:Dow rises 200 points, Nasdaq jumps 1% as investors weigh next Fed rate move

2023-01-23 17:56:00

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Goldman Sachs announces reduction in asset management investments https://newsdaily.business/2023/01/23/goldman-sachs-announces-reduction-in-asset-management-investments/ https://newsdaily.business/2023/01/23/goldman-sachs-announces-reduction-in-asset-management-investments/#respond Mon, 23 Jan 2023 12:03:24 +0000 https://newsdaily.business/2023/01/23/goldman-sachs-announces-reduction-in-asset-management-investments/ Goldman Sachs head of personal finance management Joe Duran provides his 2023 market outlook and discusses the firm’s ‘tough decision’ to cut 3,200 jobs on ‘Varney & Co. Goldman Sachs Group Inc’s asset management section will make significant cuts to the $59 billion of alternative investments that impacted its earnings. Alternative assets can include private […]]]>


Goldman Sachs Group Inc’s asset management section will make significant cuts to the $59 billion of alternative investments that impacted its earnings.

Alternative assets can include private equity or real estate instead of traditional investments like stocks and bonds.

The firm will divest its positions over the next few years and replace some of those funds on its balance sheet with external capital, according to Julian Salisbury, chief investment officer of asset and wealth management at Goldman Sachs.

“I would expect to see a meaningful decline from the current levels,” Salisbury told Reuters. “It’s not going to zero because we will continue to invest in and alongside funds, as opposed to individual deals on the balance sheet.”

FEDERAL RESERVE INVESTIGATING GOLDMAN SACHS’ CONSUMER BUSINESS

Goldman Sachs logo

Goldman Sachs Group Inc’s asset management section will make significant cuts to the $59 billion of alternative investments that impacted its earnings. (Reuters Photos)

Goldman Sachs had a poor fourth quarter, when it missed Wall Street profit targets by a substantial margin. The bank is firing more than 3,000 employees in its biggest round of job cuts since the 2008 financial crisis.

The bank’s asset and wealth management posted a 39% drop in net revenue to $13.4 billion in 2022, with its revenue from equity and debt investments declining 93% and 63%, respectively, according to earnings announced last week.

The $59 billion of alternative investments held on the balance sheet dipped from the prior year’s $68 billion, according to the results. The positions included $15 billion in equity investments, $19 billion in loans and $12 billion in debt securities, as well as other investments.

“Obviously, the environment for exiting assets was much slower in the back half of the year, which meant we were able to realize less gains on the portfolio compared to 2021,” Salisbury said.

Salisbury expects to see “a faster decline in the legacy balance sheet investments” if the environment for asset sales improves.

CONCERNS OVER A ‘WHITE COLLAR RECESSION’ GROW AS GOLDMAN SACHS, MORGAN STANLEY, AMAZON AND OTHERS CUT JOBS

Goldman Sachs logo on the New York Stock Exchange floor

The firm will divest its positions over the next few years and replace some of those funds on its balance sheet with external capital. (REUTERS/Andrew Kelly/File Photo / Reuters Photos)

“If we would have a couple of normalized years, you’d see the reduction happening” during that period, he said.

He also said clients are showing interest in private credit because of poor capital markets.

“Private credit is interesting to people because the returns available are attractive,” Salisbury said. “Investors like the idea of owning something a little more defensive but high yielding in the current economic environment.”

Goldman Sachs’ asset management arm closed a fund of more than $15 billion earlier this month to make junior debt investments in private equity-backed businesses. Private credit assets in the industry have more than doubled to more than $1 trillion since 2015, according to data provider Preqin.

Investors are also growing interested in private equity funds and are trying to purchase positions in the secondary market when existing investors sell their stakes, Salisbury said.

Goldman Sachs firm

The bank is firing more than 3,000 employees in its biggest round of job cuts since the 2008 financial crisis. (Getty Images)

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The U.S. investment-grade primary bond market began the new year with a number of new deals.

Salisbury said the market rally has “more legs” because investors are willing to buy bonds with longer maturities while also looking for higher credit quality due to the uncertain economic environment.

Goldman Sachs economists predict the Federal Reserve will raise interest rates by 25 basis points each in February, March and May before holding steady for the rest of the year, Salisbury said.

Reuters contributed to this report.



Read More:Goldman Sachs announces reduction in asset management investments

2023-01-23 09:21:17

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Culver’s restaurants switching from Pepsi to Coca-Cola, upsetting fans https://newsdaily.business/2023/01/23/culvers-restaurants-switching-from-pepsi-to-coca-cola-upsetting-fans/ https://newsdaily.business/2023/01/23/culvers-restaurants-switching-from-pepsi-to-coca-cola-upsetting-fans/#respond Mon, 23 Jan 2023 06:01:22 +0000 https://newsdaily.business/2023/01/23/culvers-restaurants-switching-from-pepsi-to-coca-cola-upsetting-fans/ Apple-Metro CEO Zane Tankel discusses how inflation is impacting consumers going to restaurants on ‘Fox Business Tonight.’ Culver’s, the Midwest chain known for its butter burgers and frozen custard, recently announced it is switching from Pepsi to Coca-Cola, upsetting many of its longtime fans.  The franchise broke the news last Wednesday, telling media outlets the […]]]>


Culver’s, the Midwest chain known for its butter burgers and frozen custard, recently announced it is switching from Pepsi to Coca-Cola, upsetting many of its longtime fans. 

The franchise broke the news last Wednesday, telling media outlets the transition was in progress and would take some time for its nearly 900 restaurants spread out across 26 states, FOX 6 reported

Culver's restaurant

An employee hands a drive-thru customer their order. (Raquel Zaldivar/Chicago Tribune/Tribune News Service via Getty Images / Getty Images)

Parting ways with Pepsi means that restaurants will no longer serve its signature as well as Mountain Dew, Sierra Mist, and Tropicana Drinks. 

VIRAL OFF-MENU WAFFLE HOUSE SANDWICH THAT STARTED AS ‘PREGNANCY CRAVING’ RECEIVES RESISTANCE FROM WORKERS

It remains unclear which Coca-Cola products will be offered, but the company owns Spire, Fanta, and Minute Maid, in addition to many variations on its namesake beverage. 

One Twitter user wrote that news of the switch “ruined my entire day.” 

In response to the tweet, the company confirmed the transition, but said many Culver’s Signature Root Beer, Diet Root Beer, Dr. Pepper, and fresh brewed sweetened and unsweetened tea will still be available.”

Another Twitter user wrote to Culver’s: “Had my last @culvers today. When you switch back to @pepsi I will be back.” 

Yet another Twitter user wrote in response to a post about loyalty that the company’s decision to get rid of Pepsi products has “got me pondering.” 

A Facebook user posted a comment on the company’s main page, saying she would no longer be going to Culver’s because they will now be offering coke products like the restaurants she avoided. 

“Now you’re going to be like them,” she wrote. “Sorry about this decision. You had the best Pepsi on tap. Now I have to search for another restaurant that has Pepsi.” 

CLICK HERE TO GET THE FOX BUSINESS APP 

FOX Business has reached out to Culver’s for additional comment. 



Read More:Culver’s restaurants switching from Pepsi to Coca-Cola, upsetting fans

2023-01-23 02:48:43

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There’s beeen an increase in egg smuggling attempts across the border, says San Diego Customs https://newsdaily.business/2023/01/23/theres-beeen-an-increase-in-egg-smuggling-attempts-across-the-border-says-san-diego-customs/ https://newsdaily.business/2023/01/23/theres-beeen-an-increase-in-egg-smuggling-attempts-across-the-border-says-san-diego-customs/#respond Mon, 23 Jan 2023 00:00:52 +0000 https://newsdaily.business/2023/01/23/theres-beeen-an-increase-in-egg-smuggling-attempts-across-the-border-says-san-diego-customs/ CNN  —  High prices are driving an increase in attempts to bring eggs into the US from Mexico, according to border officials. Officers at the San Diego Customs and Border Protection Office have seen an increase in the number of attempts to move eggs across the US-Mexico border, according to a tweet from director of […]]]>




CNN
 — 

High prices are driving an increase in attempts to bring eggs into the US from Mexico, according to border officials.

Officers at the San Diego Customs and Border Protection Office have seen an increase in the number of attempts to move eggs across the US-Mexico border, according to a tweet from director of field operations Jennifer De La O.

“The San Diego Field Office has recently noticed an increase in the number of eggs intercepted at our ports of entry,” wrote De La O in the Tuesday tweet. “As a reminder, uncooked eggs are prohibited entry from Mexico into the U.S. Failure to declare agriculture items can result in penalties of up to $10,000.”

Bringing uncooked eggs from Mexico into the US is illegal because of the risk of bird flu and Newcastle disease, a contagious virus that affects birds, according to Customs and Border Protection.

An image from Customs and Border Protection shows eggs that a traveler attempted to bring into the United States on January 18 at the Paso Del Norte internal crossing in El Paso, Texas.

In a statement emailed to CNN, Customs and Border Protection public affairs specialist Gerrelaine Alcordo attributed the rise in attempted egg smuggling to the spiking cost of eggs in the US. A massive outbreak of deadly avian flu among American chicken flocks has caused egg prices to skyrocket, climbing 11.1% from November to December and 59.9% annually, according to the Bureau of Labor Statistics.

The increase has been reported at the Tijuana-San Diego crossing as well as “other southwest border locations,” Alcordo said.

For the most part, travelers bringing eggs have declared the eggs while crossing the border. “When that happens the person can abandon the product without consequence,” said Alcordo. “CBP agriculture specialists will collect and then then destroy the eggs (and other prohibited food/ag products) as is the routine course of action.”

In a few incidents, travelers did not declare their eggs and the products were discovered during inspection. In those cases, the eggs were seized and the travelers received a $300 penalties, Alcordo explained.

“Penalties can be higher for repeat offenders or commercial size imports,” he added.

Alcordo emphasized the importance of declaring all food and agricultural products when traveling.

“While many items may be permissible, it’s best to declare them to avoid possible fines and penalties if they are deemed prohibited,” he said. “If they are declared and deemed prohibited, they can be abandoned without consequence. If they are undeclared and then discovered during an exam the traveler will be subject to penalties.”





Read More:There’s beeen an increase in egg smuggling attempts across the border, says San Diego Customs

2023-01-22 22:32:00

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Dow Jones Futures Loom For Market Rally; These 10 Big Earnings Are On Tap https://newsdaily.business/2023/01/22/dow-jones-futures-loom-for-market-rally-these-10-big-earnings-are-on-tap/ https://newsdaily.business/2023/01/22/dow-jones-futures-loom-for-market-rally-these-10-big-earnings-are-on-tap/#respond Sun, 22 Jan 2023 17:59:46 +0000 https://newsdaily.business/2023/01/22/dow-jones-futures-loom-for-market-rally-these-10-big-earnings-are-on-tap/ Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. Investors will be looking ahead to a huge week of earnings, led by Tesla (TSLA), Microsoft (MSFT) and Boeing (BA). X The stock market rally retreated mid-week, with the major indexes tumbling below key moving averages. But they bounced back […]]]>


Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. Investors will be looking ahead to a huge week of earnings, led by Tesla (TSLA), Microsoft (MSFT) and Boeing (BA).




X



The stock market rally retreated mid-week, with the major indexes tumbling below key moving averages. But they bounced back Friday, especially the Nasdaq and tech stocks. The Nasdaq, the laggard in 2022, has led the big-cap indexes in 2023 as tech growth names come back in favor.

The recent pullback offered a chance for many stocks to take a breather, forging handles or other new buying opportunities.

Investors should be paying close attention, but be cautious about new positions. The market rally is around critical levels. Earnings season could roil the indexes and specific sectors as well as individual stocks.

Hundreds of companies will be reporting this coming week. Here are 10 earnings reports to watch closely: Tesla, Microsoft, Boeing, ServiceNow (NOW), Chevron (CVX), Visa (V) and Mastercard (MA), as well as chip-gear giants ASML (ASML), Lam Research (LRCX) and KLA Corp. (KLAC).

These reports will offer insight into their respective industries, and could have a big impact on the overall market. Tesla stock and Microsoft still have a lot of repair work to do, while Boeing is extended. NOW stock could be near an aggressive early entry. CVX stock, Visa and Mastercard are all near buy points. So are LRCX and KLA, while ASML is slightly out of reach.

KLAC stock is on the IBD Big Cap 20. Microsoft stock and ASML are on IBD Long-Term Leaders.

Microsoft, Boeing, Chevron and Visa stock are all Dow Jones components.

The video embedded in this article reviews an important market week and analyzes Etsy (ETSY), LRCX stock and ServiceNow.

Dow Jones Futures Today

Dow Jones futures open at 6 p.m. ET, along with S&P 500 futures and Nasdaq 100 futures.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.


Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live


Stock Market Rally

The stock market rally suffered a downside reversal Wednesday, and fell further on Thursday, but finished relatively well.

The Dow Jones Industrial Average fell 2.7% in last week’s stock market trading. The S&P 500 index dipped 0.7%. The Nasdaq composite climbed 0.55%. The small-cap Russell 2000 declined 1.1%.

The 10-year Treasury yield fell 3 basis points to 3.48% Friday. The yield hit 3.37% during the week, a four-month low.

The expiring February crude oil futures contract rose 1.8% to $81.31 a barrel last week. The March contract, the new near-month crude contract, finished at $81.64.

ETFs

Among growth ETFs, the Innovator IBD 50 ETF (FFTY) fell 1% last week. The iShares Expanded Tech-Software Sector ETF (IGV) rose 1.45%, with MSFT stock and ServiceNow both significant holdings. The VanEck Vectors Semiconductor ETF (SMH) edged up 0.7%. ASML stock is a big holding, along with LRCX, KLAC and TER.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) climbed 1.4% last week and ARK Genomics ETF (ARKG) lost 1%. TSLA stock remains a major holding across Ark Invest’s ETFs. Indeed, Cathie Wood’s Ark reloaded its Tesla stock holdings in recent months.

SPDR S&P Metals & Mining ETF (XME) dipped 0.5% after two big weekly gains. The Global X U.S. Infrastructure Development ETF (PAVE) fell nearly 3%. U.S. Global Jets ETF (JETS) edged up just 0.35% but it’s up sharply in 2023. SPDR S&P Homebuilders ETF (XHB) fell 2.4%.

The Energy Select SPDR ETF (XLE) climbed 0.7%, a sixth straight weekly advance. Chevron stock is a major component. The Financial Select SPDR ETF (XLF) sank 2.1%. The Health Care Select Sector SPDR Fund (XLV) fell 1.1%, the sixth decline in seven weeks.


Five Best Chinese Stocks To Watch Now


Key Earnings

Tesla earnings are due Wednesday night. Investors expect earnings to rise 34% and revenue 39%. That would be the first quarter in years that revenue growth would outpace profits, an early sign of margin pressure.

The focus will likely be on the outlook, especially in the wake of big price cuts worldwide to start 2023. Will Tesla stick to its 50% delivery growth target? Will Elon Musk provide more Cybertruck specifics, and will he confirm a reported Model 3 revamp? What about a new EV plant? Tesla stock soared 9% last week to 133.42, above the 21-day moving average after dropping to 101.81 intraday on Jan. 6. But it’s still below its 50-day line and especially its 200-day line.

Microsoft earnings are due Tuesday night. Analysts expect Microsoft earnings to decline slightly, with a slim revenue gain. Microsoft’s results will be key for software makers, the PC sector and cloud-computing rivals such as Amazon.com (AMZN). This past week, the Dow Jones tech titan said it would cut 10,000 jobs, or 4.5% of staff. MSFT stock edged up 0.4% last week, hitting resistance at the 50-day line. Microsoft arguably has a bottoming base below the 200-day line. But a breakout would involve clearing the 200-day line and a long downward-sloping trendline.

Boeing earnings are Wednesday morning, with a slim profit expected after a string of losses. Investors are betting on rebounding profit and cash flow in the coming years. Boeing stock fell 3.4% to 206.76 this past week. After a huge move, BA stock needs to set up again.

ServiceNow earnings are slated for Wednesday night. Analysts expect a 38% EPS gain, the second straight quarter of accelerating growth. Executives have been bullish on 2023 IT spending. The report will be key for highly valued business software names. NOW stock popped 6.5% to 441.83 after surging 13% in the prior week. Shares cleared the 200-day line on Friday, hitting a four-month high and clearing a long downtrend. That offered a very early entry, but the upcoming earnings make that highly risky.

Chevron earnings are due out Friday morning. Analysts expect another quarter of booming EPS growth vs. a year earlier, but down from Q2-Q3. CVX stock rose 1.8% to 180.81 last week, retaking its 50-day line. Chevron is in a flat base, but a move above Wednesday’s high of 182.38 would offer an early entry. Chevron earnings will be important for the oil and gas sector, especially oil majors such as Exxon Mobil (XOM).

Mastercard earnings are due early Thursday, with Visa earnings after the close. Mastercard EPS is seen up nearly 10% with Visa’s up 11%. The credit card giants’ results and comments will be important for other payments firms and for insight into consumer spending trends. Both Visa and Mastercard stock are working on handles in long consolidations, trading around key resistance levels going back to early 2022.

ASML earnings are due early Wednesday, with Lam Research and Teradyne after the close. KLA reports late Thursday. ASML earnings are expected to fall 11%, but Lam Research earnings should climb 15% and KLA’s 27%. Guidance will be key in what is likely to be a challenging 2023. Together these earnings reports, along with chipmakers such as Intel (INTC), will give insight into the semiconductor space and end markets.

ASML stock is extended from the 200-day line. LRCX stock is trading just above its 50-day and 200-day lines in a bottoming base. KLAC stock has a small handle on a weekly chart for a consolidation going back a year.

Market Rally Analysis

The stock market rally was due for a pullback, and it got one. The major indexes reversed sharply lower on Wednesday and kept falling Thursday. But they closed off Thursday’s lows and rebounded strongly Friday.

The Nasdaq eked out a weekly gain, decisively retaking the 50-day moving average on Friday. Friday’s action was another subsequent follow-through day for the Nasdaq.

The S&P 500 reclaimed its 50-day line and sneaked back above its 200-day line. The Russell 2000 found support at the 200-day and could try to test its late 2022 peaks soon.

The Dow Jones was the week’s biggest loser, tumbling below its 50-day and ending the week well below that level.

Outside of the Dow, the recent pullback looks normal and healthy so far.

The pause is giving a chance for leading stocks to forge handles while few are breaking down. If anything, a slightly longer pullback could be useful in this regard.

But the major indexes have a number of key resistance levels. The S&P 500 needs to decisively retake the 200-day line, with this past week’s highs and the December peak serving as key milestones.

Earnings season could be the catalyst for big market gains or losses — or both.

This coming week will also offer the first reading on fourth-quarter GDP, along with the December PCE inflation gauge. Those will pave the way for the Federal Reserve policy meeting on Feb. 1.


Tesla Vs. BYD: EV Giants Vie For Crown, But Which Is The Better Buy?


Tech Revival Continues

The stock market rally appears to be rotating toward tech growth plays after a long break. The Nasdaq composite hit a bear market closing low as recently as Dec. 28. But in 2023, the Nasdaq is up 6.4%. The SMH chip ETF has rallied 12%, the IGV software ETF 5.5% and the speculative ARKK 16.8%.

What’s driving the tech growth revival?

Treasury yields are falling, a positive for highly valued growth stocks. Meanwhile, there are hopes for an economic soft landing, as China and Europe improve and as Fed rate hikes appear close to a peak. That raises bets that much of the bad news is priced in for growth stocks

The Russell 2000, another risk-on play, is nearly even with the Nasdaq, up 6.1% in 2023.

The S&P 500 has climbed 2.5% to start the new year. The Dow Jones has edged up 0.7%, and only positive thanks to Friday’s solid gain.

There aren’t a lot of tech growth names in position yet. LRCX stock is among the emerging big-cap chip leaders setting up. Software is scarce, though NOW stock is making a case. E-commerce is picking up, with MercadoLibre (MELI) breaking out and Etsy (ETSY) setting up. Chinese…



Read More:Dow Jones Futures Loom For Market Rally; These 10 Big Earnings Are On Tap

2023-01-22 17:32:00

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US farm group calls for probe of high egg prices https://newsdaily.business/2023/01/22/us-farm-group-calls-for-probe-of-high-egg-prices/ https://newsdaily.business/2023/01/22/us-farm-group-calls-for-probe-of-high-egg-prices/#respond Sun, 22 Jan 2023 11:58:57 +0000 https://newsdaily.business/2023/01/22/us-farm-group-calls-for-probe-of-high-egg-prices/ FOX Business correspondent Lydia Hu has the latest on the impact of the avian bird flu on ‘America’s Newsroom.’ Consumers’ wallets have been impacted by skyrocketing inflation in the U.S. this past year. The latest concern is eggs, the price of which was up 138% in December from a year prior, to $4.25 a dozen, […]]]>


Consumers’ wallets have been impacted by skyrocketing inflation in the U.S. this past year.

The latest concern is eggs, the price of which was up 138% in December from a year prior, to $4.25 a dozen, according to the Bureau of Labor Statistics.

A farm group is calling on the Federal Trade Commission (FTC) to examine the rise for signs of price gouging from top egg companies.

Various groups from regulators to farmers and industry officials have often argued in recent years about the power of top agriculture firms to set prices and drive up what consumers pay for groceries.

‘SKY-HIGH’ EGG PRICES: A HISTORICAL LOOK AT EGG COSTS SINCE 1980

Inflation affecting egg prices

A shopper checks eggs before he purchases at a grocery store in Glenview, Illinois. Border officials are seeing more seizures of eggs amid soaring prices and inflation.  (AP Photo/Nam Y. Huh / AP Newsroom)

The nation’s antitrust regulator should examine record-high profits at the top egg company, said Farm Action on Thursday in a letter to FTC chair Lina Khan.

That egg producer is Cal-Maine Foods, which controls 20% of the retail egg market.

Quarterly sales at Cal-Maine were up 110% and gross profits up more than 600% over the same quarter in the prior fiscal year, according to a regulatory filing.

The company pointed to decreased egg supply nationwide due to avian flu driving up prices as a reason for its record sales.

Eggs in the dairy aisle

Half-empty shelves of eggs are seen at a supermarket on Jan. 8, 2023 in Los Angeles, California.  (I RYU/VCG via Getty Images / Getty Images)

EGG PRICES RISE MORE THAN 64% IN SOME STATES

The U.S. Department of Agriculture (USDA) also pointed to a record outbreak of avian flu as a reason for the high prices.

Nearly 58 million chickens and turkeys have been killed by avian flu or to control the spread of the virus since the beginning of 2022, mostly in March and April, according to the USDA. 

U.S. egg production was about 5% lower in October compared to last year, and egg inventories were down 29% in December compared to the beginning of the year, a significant drop, but one that may not explain record-high prices, said Basel Musharbash, an attorney with Farm Action.

egg prices

Cartons of eggs sit in a freezer at a supermarket on Jan. 8, 2023 in Los Angeles, California. (I RYU/VCG via Getty Images / Getty Images)

US BORDER AUTHORITIES REPORT INCREASE IN EGG SMUGGLING 

“We want the FTC to dig in and see if consumers are being price gouged,” Musharbash said.

Ticker Security Last Change Change %
CALM CAL-MAINE FOODS INC. 54.67 -1.05 -1.88%

In a statement to Reuters, Cal-Maine said that higher production costs are also a factor in higher prices.

The American Egg Board, an egg marketing group, said in a statement that egg prices reflect a variety of factors and that wholesale egg prices are beginning to fall.

FOX Business has reached out to the FTC for comment.



Read More:US farm group calls for probe of high egg prices

2023-01-22 06:11:52

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Woman Dies After Tesla Crashes Into San Rafael Pool – NBC Bay Area https://newsdaily.business/2023/01/22/woman-dies-after-tesla-crashes-into-san-rafael-pool-nbc-bay-area/ https://newsdaily.business/2023/01/22/woman-dies-after-tesla-crashes-into-san-rafael-pool-nbc-bay-area/#respond Sun, 22 Jan 2023 05:58:05 +0000 https://newsdaily.business/2023/01/22/woman-dies-after-tesla-crashes-into-san-rafael-pool-nbc-bay-area/ A Tesla driver is dead after she crashed into a swimming pool in San Rafael Saturday morning, the California Highway Patrol said. CHP said they were called to the incident just before 7:30 a.m. and that San Rafael first responders had been called to the incident at an earlier time. Officials said the woman was […]]]>


A Tesla driver is dead after she crashed into a swimming pool in San Rafael Saturday morning, the California Highway Patrol said.

CHP said they were called to the incident just before 7:30 a.m. and that San Rafael first responders had been called to the incident at an earlier time.

Officials said the woman was driving westbound on Point San Pedro Road in the 2019 Tesla when she veered off the road, and ended up in the pool at a residence on Bonnie Banks Way.

CHP said no one else was hurt in this crash.

According to CHP Officer Darrel Horner, the woman wasn’t wearing a seat belt.

San Rafael Police and San Rafael Fire Department were first to arrive on the scene, and the driver was pronounced dead, Horner said.

It’s unclear why the car veered or whether it was in autopilot at the time of the crash.

“At this time it’s still under investigation, we’re not sure if any of that played a role in this crash but everything will be looked at, we will be able to download the information from the vehicle,” Horner said.

Horner said at this time, CHP does not suspect alcohol or drugs were a factor in this crash, but they are continuing to investigate. Horner also noted that road conditions were clear, dry, and free of ice at the time of the crash.

CHP said that the Marin County Coroner will be looking into this individual’s cause of death and will share the identity of the deceased once next of kin have been notified. NBC Bay Area reached out to the Marin County Coroner’s office but we have not heard back.

Barbara Kuffner lives in the home in San Rafael where this Tesla crashed. She said she was asleep in her bedroom just outside her backyard pool when she heard a loud noise at around 6:30 a.m. Saturday. At first, Kuffner thought she had heard thunder and lightning.

A friend was staying over at Kuffner’s house that day and spotted the Tesla in the pool first, she said. This friend instructed her to call 911 while he attempted to get the driver out of the car.

“And the car was sinking and he knew there was a person in there, and he was trying to break the car to get the person out but he couldn’t,” Kuffner recalled.

She said by the time paramedics arrived, they declared the driver dead. Kuffner said she was asked to leave her backyard while the investigation played out.

A towing company eventually came and carried the Tesla out of the pool with a crane, with pool water rushing out of the Tesla as it traveled through the air.

“There’s still a bunch of debris and insurance companies have to get involved,” Kuffner explained.

As she picks up the pieces of the damage, Kuffner said she is feeling grateful that she, her friend, and her friend’s dog were not in the backyard Saturday morning.

“All three of us could have been out there at that time and we might not be alive right now, life’s a timing thing,” she said.

Bay City News contributed to the report.





Read More:Woman Dies After Tesla Crashes Into San Rafael Pool – NBC Bay Area

2023-01-22 05:23:23

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Abandoned shopping carts cost taxpayers thousands of dollars https://newsdaily.business/2023/01/21/abandoned-shopping-carts-cost-taxpayers-thousands-of-dollars/ https://newsdaily.business/2023/01/21/abandoned-shopping-carts-cost-taxpayers-thousands-of-dollars/#respond Sat, 21 Jan 2023 23:55:28 +0000 https://newsdaily.business/2023/01/21/abandoned-shopping-carts-cost-taxpayers-thousands-of-dollars/ New York CNN  —  Santa Fe, New Mexico, paid a local contractor $47,000 to round up about 3,000 shopping carts around the city in 2021 and 2022. Fayetteville, North Carolina, spent $78,468 collecting carts from May 2020 to October 2022. Shopping carts keep wandering away from their stores, draining taxpayers’ coffers, causing blight and frustrating […]]]>



New York
CNN
 — 

Santa Fe, New Mexico, paid a local contractor $47,000 to round up about 3,000 shopping carts around the city in 2021 and 2022.

Fayetteville, North Carolina, spent $78,468 collecting carts from May 2020 to October 2022.

Shopping carts keep wandering away from their stores, draining taxpayers’ coffers, causing blight and frustrating local officials and retailers.

Abandoned shopping carts are a scourge to neighborhoods, as wayward carts block intersections, sidewalks and bus stops. They occupy handicap spots in parking lots and wind up in creeks, ditches and parks. And they clog municipal drainage and waste systems and cause accidents.

There is no national data on shopping cart losses, but US retailers lose an estimated tens of millions of dollars every year replacing lost and damaged carts, say shopping cart experts. They pay vendors to rescue stray carts and fork over fines to municipalities for violating laws on shopping carts. They also miss out on sales if there aren’t enough carts for customers during peak shopping hours.

Last year, Walmart paid $23,000 in fines related to abandoned shopping carts to the small town of Dartmouth, Massachusetts, said Shawn McDonald, a member of the town’s Select Board.

Shopping carts on the loose.

Dartmouth public workers spent two years corralling more than 100 Walmart carts scattered around town and housed them in one of the city’s storage facilities. When Walmart applied for a new building permit, the company was told it had to pay the town thousands of dollars in daily storage fees, McDonald said.

“It’s a safety issue with these carts careening down the hill. I had one that was left in the road as I was driving,” he said. “I got to the point where I got pissed.”

More municipalities around the country are proposing laws cracking down on stray carts. They are imposing fines on retailers for abandoned carts and fees for retrieval services, as well as mandates for stores to lock up their carts or install systems to contain them. Some localities are also fining people who remove carts from stores.

The city council in Ogden, Utah, this month approved an ordinance fining people who take store carts or are in possession of one. The measure also authorizes the city to charge retailers a fee of $2 a day for storage and handling fees to retrieve lost carts.

“Abandoned shopping carts have become an increasing nuisance on public and private properties throughout the city,” the council said in its summary of the bill. City officials “are spending considerable amounts of time to pick up and return or dispose of the carts.”

Matthew Dodson, the president of Retail Marketing Services, which offers cart retrieval, maintenance and other services to leading retailers in several western states, said lost shopping carts is a growing problem.

During the busy 2022 holiday season, Retail Marketing Service leased extra carts to retailers, and got back 91% of its approximately 2,000 carts, down from 96% the prior year.

Dodson and others in the shopping cart industry say the rise in lost carts can be attributed to several factors, including unhoused people using them to hold their belongings or as shelter. Homelessness has been rising in many major cities due to skyrocketing housing prices, lack of affordable housing, and other factors. There have also been incidents of people stealing carts for scrap metal.

Some people, especially in cities, also use supermarket carts to bring their groceries home from the store. Other carts drift away from parking lots if they aren’t locked up during rough weather or at night.

To be sure, the problem of wayward shopping carts is not new. They began leaving stores soon after they were introduced in the late 1930s.

“A new menace is threatening the safety of motorists in stores,” the New York Times warned in a 1962 article. “It is the shopping cart.” Another New York Times article in 1957 called the trend “Cart-Napping.”

There’s even a book, “The Stray Shopping Carts of Eastern North America: A Guide to Field Identification,” dedicated to the phenomenon and a system of identification for stray shopping carts, much like guides for bird-watching.

Edward Tenner, a distinguished scholar in the Smithsonian’s Lemelson Center for the Study of Invention and Innovation, said the misuse of everyday items like shopping carts is an example of “deviant ingenuity.”

It’s similar to talapia fishermen in Malaysia stealing payphones in the 1990s and attaching the receivers to powerful batteries that emitted a sound to lure fish, he said.

Tenner hypothesized that people take shopping carts from stores because they are extremely versatile and aren’t available elsewhere: “There’s really no legitimate way for an individual to buy a supermarket-grade shopping cart.”

Supermarkets can have 200 to 300 shopping carts per store, while big-box chains carry up to 800. Depending on the size and model, carts cost up to $250, said Alex Poulos, a sales director at R.W. Rogers Company, which supplies carts and other equipment to stores.

Stores and cart makers over the years have increased the size of carts to encourage shoppers to buy more items.

Stores have introduced several cart safety and theft-prevention measures over the years, such as cart corrals and, more recently, wheels that automatically lock if a cart strays too far from the store. (Viral videos on TikTok show Target customers struggling to push around carts with wheeled locks.)

Gatekeeper Systems, which offers shopping cart control measures for the country’s largest retailers, said demand for its “SmartWheel” radio-frequency locks has increased during the pandemic.

At four stores, Wegmans is using Gatekeeper’s wheel locks.

“The cost of replacing carts as well as the cost of locating and returning missing carts to the store led to our decision to implement the technology,” a Wegmans spokesperson said.

Aldi, the German grocery chain that’s rapidly expanding in the United States, is one of the few US retailers to require customers to deposit a quarter to unlock a cart.

Coin-lock shopping cart systems are popular in Europe, and Poulos said more US companies are requesting coin-lock systems in response to the costs of runaway shopping carts.



Read More:Abandoned shopping carts cost taxpayers thousands of dollars

2023-01-21 20:29:00

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