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Tag: Agrochemicals

  • Are Cheerios and Quaker Oats safe to eat? Experts weigh in on new pesticide concerns. 

    Are Cheerios and Quaker Oats safe to eat? Experts weigh in on new pesticide concerns. 

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    Should you pass on that morning bowl of cereal or oatmeal?

    That’s what some people may be asking in light of a study released this week by the Environmental Working Group, a Washington, D.C.-based nonprofit focused on agricultural and chemical-safety laws in the U.S. The study looked at the prevalence of a pesticide called chlormequat in oat-based food products, including cereals like Cheerios and Quaker Oats. 

    The EWG said it found detectable levels of the chemical in 92% of nonorganic oat-based foods purchased in May 2023.

    “Studies in laboratory animals show that chlormequat can cause harm to the normal growth and development of the fetus and damage the reproductive system,” Olga Naidenko, vice president at the EWG, told MarketWatch. Those risks, the EWG report noted, can include reduced fertility. 

    It has not been proven that the substance affects humans in the same way the studies cited by the EWG found it does lab animals, and there are other studies that have found chlormequat had no effect on reproduction in pigs or mice, or any impact on fertilization rates in mice.

    The EWG is still advocating that concerned consumers buy organic oat products as an alternative, however. 

    “Certified organic oats are, by law, grown without synthetic pesticides,” Naidenko said. 

    Representatives for General Mills
    GIS,
    +1.28%
    ,
    the company that makes Cheerios, and PepsiCo
    PEP,
    -0.92%
    ,
    which owns Quaker Oats, didn’t immediately respond to a request for comment. 

    ‘Any family raising kids or thinking about starting a family should do whatever they can do to avoid chlormequat. It’s not a safe product.’


    — Charles Benbrook, a scientific consultant who focuses on pesticides

    The EWG’s recommendation to go organic was echoed by experts that MarketWatch contacted. 

    Charles Benbrook, a scientific consultant based in Washington state who focuses on pesticides, said he’s an oatmeal eater who chooses organic oatmeal “when I can get it.”

    Regarding chlormequat, Benbrook said, “It’s not a safe product.”

    “Any family raising kids or thinking about starting a family should do whatever they can do to avoid chlormequat,” he said.

    Melissa Furlong, an assistant professor of environmental health sciences at the University of Arizona, said it’s important to note that chlormequat is not the only pesticide that is found in oat-based cereals. There’s still much we need to learn about the health effects the substance might have on humans, she added.

    “That’s not to say it isn’t the worst [pesticide]. We don’t really know,” Furlong said. 

    Chlormequat has not been approved for use on food crops grown in the U.S., according to the EWG, but it can be found in oats and oat products from other countries. Under the Trump administration, the Environmental Protection Agency started allowing imports of such products into the U.S., the EWG noted, which is why chlormequat can be found in some cereals sold in this country.

    The EPA is considering approving chlormequat for use on crops grown in the U.S., according to the agency’s website. In a call for public comment on its proposed decision, the agency said, “Based on EPA’s human health risk assessment, there are no dietary, residential, or aggregate (i.e., combined dietary and residential exposures) risks of concern.”

    The EPA didn’t respond immediately to a request for comment.

    For her part, Furlong said that while she usually buys organic oat products, she isn’t rigid about it — and she might still buy the occasional box of Cheerios.

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  • Even Cloudflare's CEO says that viral firing video is 'painful' — here's what went wrong

    Even Cloudflare's CEO says that viral firing video is 'painful' — here's what went wrong

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    A tech employee’s recording of the meeting firing her from a sales role at Cloudflare
    NET,
    -1.79%

    has spurred criticism of the company — and a broader conversation about the right way to let employees go.

    Viewers have called the roughly 10-minute TikTok video, which went viral this week, “sad” and a “disaster.” Even Cloudflare CEO Matthew Prince responded on X (formerly Twitter) that it was “painful for me to watch.”

    In the video captioned, “POV: You’re about to get laid off,” former Cloudflare account executive Brittany Pietsch logs into a virtual meeting with an HR representative and a director at the company, both of whom she says she’s never met before. In a caption, Pietsch writes that she assumed they were meeting to let her go, because she had heard from coworkers who had been axed already.

    In the video, the company reps say that Pietsch hadn’t met performance expectations, and that Cloudflare had decided to “part ways” with her. Pietsch’s response is what has pushed this clip to be shared all over social-media newsfeeds: She asks for an explanation for why she, specifically, is being let go by the company, particularly because she’s a new employee who hasn’t heard any negative feedback. She also asks why her manager isn’t a part of this termination meeting.

    “Every single one-on-one [meeting] I’ve had with my manager, every conversation I’ve had with him — he’s been giving me nothing but ‘I am doing a great job,’” she says during the meeting. “I’m just definitely very confused and would love an explanation that makes sense.” 

    The director, who can’t be seen in the video, says he “won’t be able to go into specifics” on Pietsch’s performance. 

    In a statement to MarketWatch, a Cloudflare spokesperson clarified that the company did not conduct layoffs, and is not engaged in a reduction of force. “When we do make the decision to part ways with an employee, we base the decision on a review of an employee’s ability to meet measurable performance targets,” the Cloudflare statement said. “We regularly review team members’ performance and let go of those who aren’t right for our team. There is nothing unique about that review process or the number of people we let go after performance review this quarter.”

    Pietsch did not immediately respond to a request for comment. 

    Company CEO Prince added on X, formerly known as Twitter, that the company fired 40 salespeople out of 1,500 in its go-to-market division. “That’s a normal quarter,” he wrote in his post. “When we’re doing performance management right, we can often tell within 3 months or less of a sales hire, even during the holidays, whether they’re going to be successful or not.” 

    But he also added: “We try to fire perfectly. In this case, clearly we were far from perfect. The video is painful for me to watch. Managers should always be involved. HR should be involved, but it shouldn’t be outsourced to them … We don’t always get it right.”

    Many viewers seem to agree, as the video has drawn close to 200,000 views on TikTok and millions of views on X, along with going viral on Reddit.

    “Total disaster on both sides,” lawyer Eric Pacifici said. 

    “Totally unfair to her,” wrote Austen Allred, CEO of the online-coding bootcamp Bloom Institute of Technology. “Pretty sad across the board.” 

    On LinkedIn, Pietsch gave her own response to the social-media uproar. She said that her manager was unaware that she was being let go, and that she asked questions during the meeting not to try and save her job, but rather to get greater clarity on why she had been singled out for termination. 

    “I’ll never be able to wrap my mind around it,” she wrote in the post. “We as employees are expected to give 2 weeks notice and yet we don’t deserve even a sliver of respect when the roles are reversed?”

    What’s the right way to fire an employee? 

    It’s never easy to part ways with an employee, according to Molly, a human-resources consultant who runs the TikTok account HR Molly, which has 80,000 followers. She asked only to be identified by her first name for privacy reasons. 

    But that being said, it’s very important to treat affected employees with respect. That can include sharing as much information as possible about why the decision is being made. 

    “I tell people that even if you catch someone stealing, even that termination meeting should have a level of decency,” she said. “It seems like there’s a significant consensus that the meeting [in the viral video] lacked some dignity.”

    It’s also important to understand these kinds of conversations will be difficult for an employee no matter what, Molly added. 

    “We know this impacts people and we know this is emotional and that it’s harmful. How can we do it in a way that creates the least amount of additional harm?” she said, noting that she picked up the concept from fellow TikTok creator and diversity consultant Ciarra Jones. “Companies need to prioritize the well-being of the employee that’s impacted.” 

    As for recording your layoff or firing meeting — that can be risky, Molly said, and downright illegal in states that require you to receive consent before doing so.

    But companies and HR professionals would be wise to remind themselves that, in this day and age, it can happen, she said. And if a camera or tape recorder would change the way you handle an interaction, it’s a good sign to reevaluate.

    According to its company website, Cloudflare has dozens of job postings for open positions across the company, including sales roles.

    In her LinkedIn post, Pietsch said that she’s not very concerned about any backlash over the video that might impede her chances of getting another job. 

    “Any company that wouldn’t want to hire me because I shared a video of how a company fired me or because I asked questions as to why I was being let go is not a company I would ever want to work for anyway,” she wrote.

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  • Bayer CEO Says Breakup Wouldn’t Fix All of the Company’s Ills

    Bayer CEO Says Breakup Wouldn’t Fix All of the Company’s Ills

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    BERLIN—Bayer Chief Executive Bill Anderson said the company would bounce back quickly from a recent spate of bad news, and warned that a breakup of the pharmaceutical and agricultural company was no universal cure for its ailments.

    A stream of negative news has rekindled calls from investors for Bayer to unlock value by spinning off its units into separate businesses. But in an interview with The Wall Street Journal this week, Anderson said the company couldn’t be distracted from the tough restructuring to fix the businesses.

    Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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  • C3.ai, GameStop, UiPath, ChargePoint, Yext, BlackBerry, and More Stock Market Movers

    C3.ai, GameStop, UiPath, ChargePoint, Yext, BlackBerry, and More Stock Market Movers

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  • U.S. banks and regional lenders slide across the board as S&P is latest to downgrade ratings

    U.S. banks and regional lenders slide across the board as S&P is latest to downgrade ratings

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    U.S. banks and regional banks fell across the board on Tuesday, after S&P Global Ratings downgraded five smaller players after a review of risk related to funding, liquidity and asset quality with a focus on office commercial real estate.

    Adding to the gloom, Republic First Bancorp. Inc.’s stock
    FRBK,
    -41.90%

    tanked by 39%, after Nasdaq told the company that its stock would be delisted on Wednesday, after it failed to file its annual report in time.

    S&P’s move comes just days after Fitch Ratings analyst Christopher Wolfe reduced his operating environment score for U.S. banks to aa- from aa due to the unknown path of interest rate hikes and regulatory changes facing the sector.

    And Moody’s Investors Service just two weeks ago upset investors when it downgraded some lenders and said it was reviewing ratings on bigger banks, including Bank of New York Mellon
    BK,
    -1.71%
    ,
    State Street
    STT,
    -1.59%

    and Northern Trust
    NTRS,
    -1.73%
    .

    For more, see: Bank asset quality, weaker profits spark Moody’s reviews and downgrades as it weighs potential 2024 recession

    The S&P 500 Financials Sector has fallen for seven consecutive days, and is on pace for its longest losing streak since April 7, 2022, when it also fell for seven straight trading days.

    Individual bank names are also performing poorly, with Goldman Sachs Group Inc.
    GS,
    -0.94%

    and Citigroup Inc.
    C,
    -1.68%

    down for 10 of the past 11 days and Charles Schwab Corp.
    SCHW,
    -4.84%

    down 11 straight days.

    Goldman alone has fallen for seven straight days for a total loss of 6.3%. It’s the longest losing streak since Feb. 28, 2020, when it also fell for seven straight days as the pandemic was taking hold.

    The KBW Nasdaq Regional Banking Index
    KBWR
    is down for 11 straight days. and the KBW Nasdaq Bank Index
    BKX
    is down for seven straight days.

    S&P downgraded Associated Banc. Corp. 
    ASB,
    -4.20%
    ,
     Comerica Inc.
    CMA,
    -3.82%
    ,
     KeyCorp
    KEY,
    -3.58%
    ,
     UMB Financial Corp. 
    UMBF,
    -2.42%

    % and Valley National Bancorp. 
    VLY,
    -4.19%

    by one notch and said the outlook on all five is stable.

    Read also: More challenges await U.S. banks but analysts think the worst may be over for the year

    The rating agency affirmed ratings on Zions Bancorp
    ZION,
    -4.17%

     and maintained a negative outlook, meaning it could downgrade them again in the near-term. And it affirmed ratings and a stable outlook on Synovus Financial Corp. 
    SNV,
    -3.37%

     and Truist Financial Corp. 
    TFC,
    -1.36%

     “We reviewed these 10 banks because we identified them as having potential risks in multiple areas that could make them less resilient than similarly rated peers ,” S&P said in a statement.

    “For instance, some that have seen greater deterioration in funding—-as indicated by sharply higher costs or substantial dependence on wholesale funding and brokered deposits—-may also have below-peer profitability, high unrealized losses on their assets, or meaningful exposure to CRE.”

    The steep rise in interest rates orchestrated by the Federal Reserve over the past year has raised deposit costs as banks are now competing for savers seeking higher returns and that’s forced some to pay up on deposits and discourage their clients from heading to other institutions and instruments.

    The sector has been skittish this year following the collapse of Silicon Valley Bank and other lenders that led to a run on deposits at a number of regional lenders.

    However, S&P said about 90% of the banks it rates have stable outlooks and just 10% have negative ones. None have positive outlooks.

    The widespread stable outlooks shows that stability in the U.S. banking sector has improved significantly in recent months.

    S&P is expecting FDIC-backed banks in aggregate to earn a relatively healthy ROE of about 11% in 2023.

    KeyCorp. and Comerica both fell more than 3% on the news. Of the two, KeyCorp. has more outstanding debt and its 10-year bonds widened by about 5 to 10 basis points, according to data solutions provider BondCliq Media Services.

    As the following chart shows, the bonds have seen better selling on Wednesday with buyers emerging around midmorning.


    KeyBank net customer flow (intraday). Source: BondCliQ Media Services

    The next chart shows customer flow over the last 10 days.


    Most active KeyBank issues with net customer flow (last 10 days). Source: BondCliQ Media Services

    The next chart shows the outstanding debt of the downgraded banks, with KeyCorp. clearly the leader with almost $16 billion of bonds.


    Outstanding S&P downgraded banks debt USD by maturity bucket. Source: BondCliQ Media Services

    Don’t miss: Capital One confirms roughly $900 million sale of office loans as property sector wobbles

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  • Chase working to resolve issue with accidental double payments made through Zelle

    Chase working to resolve issue with accidental double payments made through Zelle

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    A spokesperson for JPMorgan Chase & Co. on Friday has confirmed statements on social media that some customers are seeing duplicate transactions and fees on their checking accounts.

    “We’re sorry,” the spokesperson said in an email to MarketWatch. “We’re working to resolve the issue and will automatically reverse any duplicates and adjust any related fees.” 

    JPMorgan Chase
    JPM,
    +2.10%

    customers on Twitter and other social-media outlets said payments made through Zelle were showing up twice.

    “PSA!!!,” said Twitter user @haunteraIIA. “Anyone waking up to duplicate zelle charges from chase, my call just went through and was told the duplicate charge should be credited within 24hours. they’re having issues with this today. i was on hold for an hour, so just in case anyone else wakes up freaked out lol.”

    Zelle is jointly owned by six banks: JPMorgan, Truist Financial Corp.
    TFC,
    +3.62%
    ,
    Capital One
    COF,
    +4.00%
    ,
    U.S. Bancorp
    USB,
    +4.00%
    ,
    PNC Financial Services Group Inc.
    PNC,
    +3.21%

    and Wells Fargo & Co.
    WFC,
    +2.95%
    .

    A spokesperson from Chase clarified that the problems are confined to its customers.

    Also Read: Banks explore reimbursing customers who send money to scam Zelle accounts

    Weston Blasi contributed to this report.

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  • 20 AI stocks expected to post the highest compound annual sales growth through 2025

    20 AI stocks expected to post the highest compound annual sales growth through 2025

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    Things move quickly in the world of artificial intelligence. It is easy to sit back and complain about developments that could be disruptive, but sometimes investors are best served by putting emotions aside and observing new developments and how they affect markets. Could AI developments and related trends make you a lot of money?

    Below is a new screen showing a group of AI-oriented companies expected to increase their sales most rapidly through 2025, based on consensus estimates among analysts polled by FactSet. Then we show expected revenue growth rates for the largest AI-oriented companies in the screen.

    Over the long haul, many businesses might perform more efficiently by employing AI. Maybe this technology can create an economic revolution similar to the one that moved the majority of the working population away from agricultural labor during the 19th and 20th centuries.

    Back in February, we screened 96 stocks held by five exchange-traded funds focused on AI and related industries and listed the 20 that analysts thought would rise the most over the following 12 months.

    Three months is a long time for AI, and the shakeout hasn’t even started.

    Read: Congress and tech seem open to regulating AI efforts, but that doesn’t mean it will happen

    There is no way to predict how politicians will react to perceived or real threats of AI and machine learning. And the largest U.S. tech players are doing everything they can to employ the new technology and remain dominant. But that doesn’t mean they will grow more quickly than smaller AI-focused players.

    A new AI stock screen

    Once again we will begin a screen with these five ETFs:

    • The Global X Robotics & Artificial Intelligence ETF
      BOTZ,
      +0.97%

      BOTZ was established 2016 and has $1.8 billion in assets under management. The fund tracks an index of companies listed in developed markets that are expected to benefit from the increased utilization of robotics and AI. There are 44 stocks in the BOTZ portfolio, which is weighted by market capitalization and rebalanced once a year. Its largest holding is Intuitive Surgical Inc.
      ISRG,
      +0.53%
      ,
      which makes up 10% of the portfolio, followed by Nvidia Corp.
      NVDA,
      +3.30%

      at 9.4%.

    • The iShares Robotics and Artificial Intelligence Multisector ETF
      IRBO,
      +1.64%

      holds 116 stocks that are equal-weighted, as it tracks a global index of companies that derive at east 50% of revenue from robotics or AI, or have significant exposure to related industries. This ETF was launched in 2018 and has $304 million in assets.

    • The $246 million First Trust Nasdaq Artificial Intelligence & Robotics ETF
      ROBT,
      +1.83%

      has 107 stocks in its portfolio, with a modified weighting based on how directly companies are involved in AI or robotics. It was established in 2018.

    • The Robo Global Artificial Intelligence ETF
      THNQ,
      +1.81%

      has $26 million in assets and was established in 2020. I holds 69 stocks and isn’t concentrated. It uses a scoring system to weight its holdings by percentage of revenue derived from AI, with holdings also subject to minimum market capitalization and liquidity requirements.

    • The newest ETF on this list is the WisdomTree Artificial Intelligence and Innovation Fund
      WTAI,
      +2.42%
      ,
      which was established in December and has $13 million in assets and holds 73 stocks in an equal-weighted portfolio. According to FactSet, stocks are handpicked and selected companies “generate at least 50% of their revenue from AI and innovation activities, including those related to software, semiconductors, hardware technology, machine learning and innovative products.”

    Altogether and removing duplicates, the five ETFs hold 270 stocks of companies in 23 countries. We first narrowed the list to 197 covered by at least nine analysts and for which consensus sales estimates are available through calendar 2025. We used calendar-year estimates because some companies have fiscal years that don’t match the calendar.

    Here are the 20 screened AI-related companies expected by analysts to have the highest compound annual growth rates (CAGR) for sales from 2023 through 2025. Sales estimates are in millions of U.S. dollars. The list also shows which of the above five ETFs holds each stocks.

    Company

    Ticker

    Estimated sales – 2023 ($mil)

    Estimated sales – 2024 ($mil)

    Estimated sales – 2025 ($mil)

    Two-year estimated sales CAGR through 2025

    Held by

    BioXcel Therapeutics Inc.

    BTAI,
    -2.47%
    $5

    $39

    $121

    411.5%

    WTAI

    Luminar Technologies Inc. Class A

    LAZR,
    +8.82%
    $86

    $266

    $588

    161.0%

    ROBT, WTAI

    BlackBerry Ltd.

    BB,
    +6.01%
    $685

    $769

    $1,925

    67.6%

    ROBT

    Credo Technology Group Holding Ltd.

    CRDO,
    +10.29%
    $183

    $259

    $363

    40.9%

    IRBO

    SentinelOne Inc. Class A

    S,
    +1.05%
    $619

    $881

    $1,176

    37.9%

    WTAI

    Wolfspeed Inc.

    WOLF,
    +5.02%
    $982

    $1,323

    $1,860

    37.6%

    WTAI

    SK hynix Inc.

    000660,
    +1.66%
    $18,319

    $27,899

    $34,542

    37.3%

    WTAI

    Mobileye Global Inc. Class A

    MBLY,
    +1.67%
    $2,109

    $2,782

    $3,920

    36.3%

    ROBT, WTAI

    Snowflake Inc. Class A

    SNOW,
    +1.42%
    $2,811

    $3,863

    $5,139

    35.2%

    IRBO, THNQ, WTAI

    Lemonade Inc.

    LMND,
    +8.08%
    $395

    $471

    $712

    34.2%

    THNQ, WTAI

    Nio Inc. ADR Class A

    NIO,
    +1.39%
    $11,874

    $16,733

    $21,304

    33.9%

    ROBT

    Stem Inc.

    STEM,
    +4.88%
    $607

    $833

    $1,055

    31.8%

    WTAI

    Upstart Holdings Inc.

    UPST,
    +10.37%
    $547

    $768

    $938

    31.0%

    BOTZ, WTAI

    Cloudflare Inc. Class A

    NET,
    +5.84%
    $1,284

    $1,669

    $2,194

    30.7%

    THNQ

    Samsara Inc. Class A

    IOT,
    +1.42%
    $830

    $1,062

    $1,364

    28.2%

    THNQ

    Ambarella Inc.

    AMBA,
    +3.45%
    $287

    $355

    $472

    28.2%

    IRBO, ROBT, THNQ, WTAI

    iflytek Co. Ltd. Class A

    002230,
    -1.34%
    $3,561

    $4,582

    $5,851

    28.2%

    THNQ

    Tesla Inc.

    TSLA,
    +4.41%
    $99,558

    $128,412

    $161,061

    27.2%

    ROBT, THNQ, WTAI

    CrowdStrike Holdings Inc. Class A

    CRWD,
    +2.40%
    $2,935

    $3,793

    $4,739

    27.1%

    THNQ, WTAI

    PB Fintech Ltd.

    543390,
    +1.39%
    $358

    $462

    $573

    26.5%

    IRBO

    Source: FactSet

    Click the tickers for more about each company or ETF.

    Click here for Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote pages.

    We have screened for expected revenue growth, rather than for earnings or cash flow, because in a newer tech-oriented business area, investors are most likely to consider the top line as companies sacrifice profits to build market share.

    It is important to do your own research if you consider purchasing any individual stock, to form your own opinion about a company’s ability to remain competitive over the long term. Starting from the top of the list, BioXcel Therapeutics Inc.
    BTAI,
    -2.47%

    is expected to show exponential sales growth, but that is from a low expected baseline this year.

    What about the largest AI-related companies held by these ETFs?

    Here are the largest 20 companies in the screen by market capitalization, ranked by expected sales CAGR from 2022 through 2025. Once again the sales estimates are in millions of U.S. dollars, but the market caps are in billions.

    Company

    Ticker

    Estimated sales – 2023 ($mil)

    Estimated sales – 2024 ($mil)

    Estimated sales – 2025 $mil)

    Two-year estimated sales CAGR through 2025

    Market Cap ($bil)

    Held by

    Tesla Inc.

    TSLA,
    +4.41%
    $99,558

    $128,412

    $161,061

    27.2%

    $528

    ROBT, THNQ, WTAI

    Nvidia Corp.

    NVDA,
    +3.30%
    $29,839

    $36,877

    $46,154

    24.4%

    $722

    BOTZ, IRBO, ROBT, THNQ, WTAI

    Taiwan Semiconductor Manufacturing Co. Ltd. ADR

    TSM,
    +5.83%
    $71,434

    $86,284

    $101,112

    19.0%

    $445

    ROBT, WTAI

    Advanced Micro Devices Inc.

    AMD,
    +2.23%
    $22,976

    $26,823

    $30,359

    15.0%

    $163

    IRBO, ROBT, THNQ, WTAI

    ASML Holding NV ADR

    ASML,
    +2.83%
    $28,974

    $32,374

    $37,796

    14.2%

    $263

    THNQ, WTAI

    Microsoft Corp.

    MSFT,
    +0.95%
    $223,438

    $251,028

    $282,397

    12.4%

    $2,318

    IRBO, ROBT, THNQ, WTAI

    Samsung Electronics Co. Ltd.

    005930,
    -0.61%
    $200,595

    $227,286

    $252,129

    12.1%

    $292

    IRBO, WTAI

    Amazon.com Inc.

    AMZN,
    +1.85%
    $559,438

    $626,549

    $702,395

    12.1%

    $1,164

    IRBO, ROBT, THNQ, WTAI

    Adobe Inc.

    ADBE,
    +3.34%
    $19,470

    $21,784

    $24,276

    11.7%

    $158

    IRBO, THNQ

    Netflix Inc.

    NFLX,
    +1.86%
    $33,915

    $38,067

    $42,275

    11.6%

    $148

    IRBO, THNQ

    Tencent Holdings Ltd.

    700,
    -0.58%
    $88,727

    $99,212

    $110,556

    11.6%

    $422

    IRBO, ROBT

    Salesforce Inc.

    CRM,
    +2.37%
    $34,392

    $38,273

    $42,786

    11.5%

    $205

    IRBO, THNQ

    Alphabet Inc. Class A

    GOOGL,
    +1.11%
    $299,810

    $333,077

    $369,195

    11.0%

    $710

    IRBO, ROBT, THNQ, WTAI

    Intel Corp.

    INTC,
    -1.20%
    $51,060

    $57,799

    $62,675

    10.8%

    $122

    IRBO, ROBT

    Meta Platforms Inc. Class A

    META,
    +1.53%
    $125,901

    $139,545

    $154,259

    10.7%

    $528

    IRBO, WTAI

    Alibaba Group Holding Ltd. ADR

    BABA,
    +2.17%
    $134,140

    $148,206

    $162,199

    10.0%

    $235

    ROBT, THNQ

    Texas Instruments Inc.

    TXN,
    +1.20%
    $17,941

    $19,433

    $20,799

    7.7%

    $148

    IRBO

    Apple Inc.

    AAPL,
    +0.36%
    $390,845

    $416,761

    $445,956

    6.8%

    $2,706

    IRBO, WTAI

    Siemens Aktiengesellschaft

    SIE,
    +2.55%
    $84,681

    $89,145

    $93,925

    5.3%

    $130

    ROBT

    Johnson & Johnson

    JNJ,
    -0.20%
    $98,761

    $100,990

    $103,870

    2.6%

    $414

    ROBT

    Source: FactSet

    Tech-stock picks that are small and focused: This fund invests in unsung innovators. Here are 2 top choices.

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  • First Republic gets $30 billion in deposits from 11 major U.S. banks, but stock resumes slide as it suspends dividend

    First Republic gets $30 billion in deposits from 11 major U.S. banks, but stock resumes slide as it suspends dividend

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    Bank of America BAC, Citigroup C, JPMorgan Chase JPM and Wells Fargo WFC said Thursday that they are each making $5 billion in uninsured deposits into First Republic Bank FRC as part of a $30 billion backstop by 11 banks against the ravaged banking landscape of the past week.

    However, First Republic stock fell 14.7% in after-hours trading after the bank said it would suspend its dividend to conserve cash. The bank last paid a quarterly dividend of 27 cents a share on Feb. 9 to shareholders of record as of Jan. 26.

    It…

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  • Tesla is a ‘soft landing’ stock, says Goldman Sachs. Here are its picks for a gentle economic landing and stocks for a recession.

    Tesla is a ‘soft landing’ stock, says Goldman Sachs. Here are its picks for a gentle economic landing and stocks for a recession.

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    Pour one out for the beleaguered economists, who for once got an important indicator, the consumer price index, right on the nose, after CPI fell 0.1% in December, while core prices rose 0.3%.

    “The 2021 surge in durable goods demand normalized, and the resulting collapse in durable goods price inflation was stunningly fast,” says Paul Donovan, chief economist of UBS Global Wealth Management.

    “The commodity wave of inflation is fading, and that leaves the profit margin expansion in focus,” he adds. What a good time for earnings season to be upon us, and what do you know, it is, kicking off with the banking sector on Friday before broadening out next week.

    Strategists at Goldman Sachs have a new note out, saying that the market is pricing in a soft landing even though the trend of earnings revisions points to a hard landing.

    They’re not that optimistic — even in the soft-landing scenario, the team led by David Kostin say the S&P 500
    SPX,
    +0.40%

    will end the year right around current levels, at 4,000. But they identify 46 stocks that could benefit — profitable, cyclical companies that are trading at price-to-earnings valuations below their 10-year median, among other factors.

    One name jumps out: Tesla
    TSLA,
    -0.94%
    ,
    which trades at 22 times forward earnings versus the 10-year median of 117 times. But the other 45 names are less flashy, ranging from Capital One
    COF,
    +1.81%

    and Carlyle Group
    CG,
    +0.54%
    ,
    to a host of industrials including 3M
    MMM,
    +0.12%
    ,
    Parker-Hannifan
    PH,
    +0.73%

    and Otis Worldwide
    OTIS,
    +0.42%
    .
    As a whole, these typically $10 billion companies are trading at 12 times earnings, versus 17 times usually.

    In the hard landing scenario, S&P 500 profit margins would shrink by 125 basis points, to 10.9% — about in line with the median peak-to-trough decline during the eight recessions since 1970, which has been 132 basis points. Consensus expectations are for a 26 basis-point margin decline.

    The Goldman team also have a 36 stock screen for a hard landing — profitable companies in defensive industries with a positive dividend yield. They’re typically food, beverage and tobacco companies as well as software and services companies — including Costco Wholesale
    COST,
    +0.58%
    ,
    Kroger
    KR,
    -0.99%
    ,
    Altria
    MO,
    +0.48%
    ,
    Tyson Foods
    TSN,
    +0.23%
    ,
    Microsoft
    MSFT,
    +0.30%
    ,
    MasterCard
    MA,
    -1.13%

    and Visa
    V,
    -0.25%
    .
    As a whole, these $37 billion companies are trading at 22 times earnings vs. a historical 24 times.

    The market

    After a 2.3% advance for the S&P 500
    SPX,
    +0.40%

    over the last three sessions, U.S. stock futures
    ES00,
    +0.39%

    NQ00,
    +0.58%

    declined on Friday.

    The yield on the Japanese 10-year bond
    TMBMKJP-10Y,
    0.511%

    exceeded 0.5%, the Bank of Japan’s yield cap, ahead of next week’s rate decision , prompting a second day of aggressive bond purchases from the central bank.

    For more market updates plus actionable trade ideas for stocks, options and crypto, subscribe to MarketDiem by Investor’s Business Daily.

    The buzz

    Fourth-quarter earnings were rolling out from Bank of America
    BAC,
    +2.20%
    ,
    JPMorgan Chase
    JPM,
    +2.52%
    ,
    Citigroup
    C,
    +1.69%

    and Wells Fargo
    WFC,
    +3.25%
    ,
    and outside of banks, Delta Air Lines
    DAL,
    -3.54%
    ,
    BlackRock
    BLK,
    +0.00%

    and UnitedHealth
    UNH,
    -1.23%
    .

    JPMorgan shares slumped after forecast-beating earnings, though investment bank revenue came in light of estimates. Delta shares also declined after topping earnings estimates.

    Tesla
    TSLA,
    -0.94%

    cut prices of Model 3 and Model Y vehicles in the U.S. and elsewhere by up to 20%. The electric vehicle maker stock dropped 6%.

    Virgin Galactic
    SPCE,
    +12.34%

    surged after saying it’s on track to launch space-tourism flights in the second quarter.

    Apple
    AAPL,
    +1.01%

    says CEO Tim Cook requested, and received, a pay cut after investor criticism.

    The University of Michigan’s consumer-sentiment index is due at 10 a.m. Eastern, and Minneapolis Fed President Neel Kashkari and Philadelphia Fed President Patrick Harker are due to speak.

    Tyler Winklevoss said charges by the Securities and Exchange Commission brought about Gemini Trust for allegedly offering unregistered securities were “super lame” as it seeks to unfreeze $900 million in investor assets.

    Best of the web

    There’s a bull market in swearing on corporate earnings calls.

    The West is now preparing to send tanks to Ukraine in what could be another escalation of its conflict with Russia, which on Friday claimed victory in the eastern town of Soledar.

    A look back at photos of Lisa Marie Presley, who died at age 54.

    Top tickers

    Here were the most active stock-market tickers as of 6 a.m. Eastern.

    Ticker

    Security name

    BBBY,
    -30.15%
    Bed Bath & Beyond

    TSLA,
    -0.94%
    Tesla

    GME,
    -0.68%
    GameStop

    AMC,
    +0.80%
    AMC Entertainment

    MULN,
    -8.59%
    Mullen Automotive

    NIO,
    -0.08%
    Nio

    APE,
    -2.56%
    AMC Entertainment preferreds

    AAPL,
    +1.01%
    Apple

    SPCE,
    +12.34%
    Virgin Galactic

    AMZN,
    +2.99%
    Amazon.com

    Random reads

    Like a scene out of “Stranger Things” — there’s uproar after new restrictions on the Hasbro
    HAS,
    +0.21%

    game Dungeons & Dragons.

    Starting next month, Starbucks
    SBUX,
    +1.30%

    rewards will be less generous for most items, though iced coffee will be easier to get.

    Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern.

    Listen to the Best New Ideas in Money podcast with MarketWatch reporter Charles Passy and economist Stephanie Kelton.

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  • For Long-Term Investors, It’s Time to Buy Tech Again. Here Are 20 Stocks to Look at First.

    For Long-Term Investors, It’s Time to Buy Tech Again. Here Are 20 Stocks to Look at First.

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    One cruel truth the stock market confirmed this past week is that trying to pick the bottom for technology stocks is a fool’s errand. The Nasdaq Composite’s terrible September—it was down 10.5% on the month—has made the bottom-fishing that took place over the summer look ill-advised. As I’ve noted before, the first downturn in tech earlier this year was all about valuations. This new phase of the decline is all about softening earnings. When it comes to price-to-earnings ratios, the market is running into a denominator problem.

    The market downturn, the weaker economy, and the reversal of some pandemic-era trends have exposed weaknesses in the business models of companies such as


    Peloton Interactive


    (ticker: PTON),


    Zoom Video Communications


    (ZM),


    Shopify


    (SHOP),


    Affirm Holdings


    (AFRM), and


    Snap


    (SNAP), and investors have adjusted valuations accordingly. But there are still some powerful underlying secular trends that should eventually drive tech stocks higher. Investors with long time horizons and strong stomachs might consider inching into the market. I have a few ideas on where to look.

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