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Tag: beverages

  • What is Bud Zero, the only beer Budweiser can sell at the World Cup? | CNN Business

    What is Bud Zero, the only beer Budweiser can sell at the World Cup? | CNN Business

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    New York
    CNN Business
     — 

    In a surprise reversal, Qatar announced a ban of alcoholic beer at the eight stadiums hosting the World Cup. That leaves fans with just one “beer” choice — albeit one that isn’t boozy.

    Soccer fans will still be able to purchase Bud Zero, an alcohol-free lager that Anheuser-Busch says tastes similar to its best-selling alcoholic beverage.

    One serving of Bud Zero has 0 grams of sugar and 50 calories. The beer, which is Bud’s first ever zero alcohol beer, launched in the United States two years ago, targeting a growing trend of people choosing non-alcoholic beers.

    Non-alcoholic alternatives to booze have been around for a while, but the sector has been booming lately. The non-alcoholic trend started to pick up a year or two before the pandemic and has continued to grow at a rapid clip. Demand for non-alcoholic alternatives has been largely driven by younger consumers.

    Qatar is a Muslim country that is considered to be very conservative, and tightly regulates alcohol sales and usage. In September, officials said ticketed fans would be able to buy alcoholic beer three hours before kickoff and for one hour after the final whistle, but not during the match.

    “Following discussions between host country authorities and FIFA, a decision has been made to focus the sale of alcoholic beverages on the FIFA Fan Festival, other fan destinations and licensed venues, removing sales points of beer from Qatar’s FIFA World Cup 2022 stadium perimeter,” said FIFA, soccer’s governing body, in a statement Friday.

    FIFA noted that the decision will have “no impact” on sales of Bud Zero.

    Budweiser tweeted, “Well, this is awkward,” though the social media post was quickly deleted.

    “As partners of FIFA for over three decades, we look forward to our activations of FIFA World Cup campaigns around the world to celebrate football with our consumers,” an Anheuser-Busch InBev spokesperson said in a statement. “Some of the planned stadium activations cannot move forward due to circumstances beyond our control.”

    It is indeed slightly awkward for AB InBev, which is a major sponsor of the World Cup, and was planning to selling regular Bud. Just a few days ago, reports showed World Cup workers moving beer tents into less visible areas of stadiums.

    AB InBev paid $75 million for the sponsorship, according to multiple reports. So, the decision throws a bit of a wrench into their marketing plans since the decision dramatically reduces its presence for thousands of fans at the World Cup. However, arguably the bigger part — its TV advertisements with football royalty Lionel Messi and Neymar Jr. — won’t be affected.

    “Qatar’s decision to ban all alcohol around the grounds for the upcoming FIFA World Cup just days before it begins presents an illusion that FIFA is not in control of its own tournament and risks alienating Budweiser—a key sponsor and long-term partner of the governing body,” said Conrad Wiacek, head of sport analysis at GlobalData, in an email.

    The decision could have ramifications for the future, Wiacek said, noting that Budweiser’s partnership with the World Cup expires after this year’s event.

    “However, Budweiser will be cautious to burn its bridges with the governing body, as the 2026 US tournament will be highly prized. Going elsewhere would open up opportunity for other alcohol brands in its wake,” he said.

    The FIFA World Cup Qatar 2022 kicks off Sunday and lasts until December 18.

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  • World Cup organizers in Qatar will reportedly ban beer sales at all eight stadiums

    World Cup organizers in Qatar will reportedly ban beer sales at all eight stadiums

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    DOHA, Qatar (AP) — World Cup organizers will ban the sale of all beer with alcohol at the eight stadiums used for the soccer tournament, a person with knowledge of the decision told The Associated Press.

    The decision comes only two days before games start in Qatar and 12 years after the country first consented to respect FIFA’s commercial partners.

    Non-alcoholic beer will still be available for fans at the 64 matches, the person said.

    The person spoke on condition of anonymity because organizers have not yet announced the decision.

    Champagne, wine, whiskey and other alcohol is still expected to be served in the hospitality areas of the stadiums. Outside of those places, beer is normally the only alcohol sold to regular ticket holders.

    Ronan Evain, the executive director of the fan group Football Supporters Europe, called the decision to ban beer sales at the stadiums “extremely worrying.”

    “For many fans, whether they don’t drink alcohol or are used to dry stadium policies at home, this is a detail. It won’t change their tournament,” Evain wrote on Twitter. “But with 48 (hours) to go, we’ve clearly entered a dangerous territory — where ‘assurances’ don’t matter anymore.”

    While a sudden decision like this may seem extreme in the West, Qatar is an autocracy governed by a hereditary emir, who has absolute say over all governmental decisions.

    Qatar, an energy-rich Gulf Arab country, follows an ultraconservative form of Islam known as Wahhabism like neighboring Saudi Arabia. However, alcohol sales have been permitted in hotel bars for years.

    Qatar’s government and its Supreme Committee for Delivery and Legacy did not immediately respond to request for comment.

    Already, the tournament has seen Qatar change the date of the opening match only weeks before the World Cup began.

    Budweiser’s parent company, AB InBev
    ABI,
    +1.28%

    BUD,
    -0.05%
    ,
    pays tens of millions of dollars at each World Cup for exclusive rights to sell beer. and has already shipped the majority of its stock from Britain to Qatar in expectation of selling its product to millions of fans. The company’s partnership with FIFA started at the 1986 tournament and they are in negotiations for renewing their deal for the next World Cup in North America.

    When Qatar launched its bid to host the World Cup, the country agreed to FIFA’s requirements of selling alcohol in stadiums, and again when signing contracts after winning the vote in 2010.

    At the 2014 World Cup in Brazil, the host country was forced to change a law to allow alcohol sales in stadiums.

    AB InBev’s deal with FIFA was renewed in 2011 — after Qatar was picked as host — in a two-tournament package through 2022. However, the Belgium-based brewer has faced uncertainty in recent months on the exact details of where it can serve and sell beer in Qatar.

    An agreement was announced in September for beer with alcohol to be sold within the stadium perimeters before and after games. Only alcohol-free Bud Zero would be sold in the stadium concourses for fans to drink in their seats in branded cups.

    Last weekend, AB InBev was left surprised by a new policy insisted on by Qatari organizers to move beer stalls to less visible locations within the perimeter.

    Budweiser was also to be sold in the evenings only at the official FIFA fan zone in downtown Al Bidda Park, where up to 40,000 fans can gather to watch games on giant screens. The price was confirmed as $14 for a beer.

    Ab InBev did not immediately respond to a request for comment.

    The company will be based at an upscale hotel in the West Bay area of Doha with its own branded nightclub for the tournament.

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  • Black Friday surprise: Jeff Bezos tells people NOT to buy cars, refrigerators and other big-ticket items. Critics call him out.

    Black Friday surprise: Jeff Bezos tells people NOT to buy cars, refrigerators and other big-ticket items. Critics call him out.

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    Billionaire Jeff Bezos, who founded the e-retail behemoth Amazon, has some spending tips as Americans gear up for a holiday shopping season — amid four-decade high inflation and recession worries.

    Here’s what he said:

    ‘If you’re an individual and you’re thinking about buying a large-screen TV, maybe slow that down, keep that cash, see what happens. Same thing with a refrigerator, a new car, whatever. Just take some risk off the table.’

    Bezos made the comments in a CNN
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    +0.46%

    interview that aired this week, the same interview where he pledged to give away most of his fortune in his lifetime.

    Why did Bezos offer the tip for consumers and small business to go easy on big-ticket items? He gave one big reason.

    “If we’re not in a recession right now, we’re likely to be in one very soon,” he said in the interview, picking up on his cautionary tweet last month that “the probabilities in this economy tell you to batten down the hatches.”

    Bezos is currently executive chair at Amazon
    AMZN,
    -2.34%
    ,
    transitioning to the role last year as Andy Jassy took the reins as CEO.

    Later this week, Amazon confirmed it was laying off some of its staff in its device and services business — joining a growing list of tech companies, including Facebook parent Meta
    META,
    -1.57%

    — that is laying people off. Amazon’s job cuts could number around 10,000, according to the Wall Street Journal.

    Critics have taken aim at these words of thrift coming from a man — now worth approximately $120 billion — who built Amazon into the online shopping bonanza.

    To be sure, Bezos is not alone is his worries about a potential recession as the Federal Reserve and other central banks fight higher costs by hiking interest rates.

    But his advice prompted some guffaws on social media. In a nutshell, critics say these are words of thrift coming from a man — now worth approximately $120 billion — who built Amazon into the online shopping bonanza that lets consumers seamlessly spend money.

    As Joshua Becker, a proponent of minimalism wrote on Twitter: “I didn’t hear him mention refraining from Amazon’s Prime Day deals or Black Friday offers, but I recommend adding those items to your list as well.”

    Regardless of how anyone feels about hearing spending advice, particularly from one of the world’s richest people, there are some things to consider as events like Black Friday and Cyber Monday approach.

    For one thing, maybe there are discretionary expenses where people can cut back. Many Americans are still spending briskly, as Walmart
    WMT,
    -0.34%

    third-quarter earnings and October’s retail-sales numbers recently affirmed. Holiday-spending projections paint the same picture.

    Americans will spend between $942.6 billion and $960.4 billion on holiday-season sales this year, according to projections from the National Retail Federation. Last year’s holiday sales totaled $889.3 billion, the trade association said.

    During the third quarter, Americans’ credit-card balances climbed to $930 billion, the biggest annual increase in more than 20 years, according to the National Retail Federation.

    But Americans are planning for the holidays while credit-card balances are increasing — likely because credit cards are helping them keep up with rising costs.

    During the third quarter, Americans’ credit-card balances climbed to $930 billion, the biggest annual increase in more than 20 years, according to Federal Reserve Bank of New York data.

    While balances grow, so do credit-card interest rates. The annual percentage rate (APR) on new credit-card offers averaged 19.14% in mid-November, according to Bankrate.com. That beats the old record on APRs for new cards, set at 19% three decades ago.

    The holiday shopping season is typically when Americans accumulate credit-card debt, pay the debts in the early part of the coming year and repeat the holiday-season debt the following year.

    This year, the stakes could be higher if high credit-card bills arrive and a recession-induced job loss follows.

    “It’s not the time to overspend and have a problem with paying your bills later,” Michele Raneri, vice president of financial services research and consulting at TransUnion
    TRU,
    -4.94%
    ,
    one of the country’s three major credit bureaus, previously told MarketWatch. “We know the economy is sending mixed messages.”

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  • Corporate entertaining has come roaring back | CNN Business

    Corporate entertaining has come roaring back | CNN Business

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    New York
    CNN Business
     — 

    Samuel Roe, regional sales manager for Terlato Wines, had business associates visiting a few weeks ago and called a friend at one of the most expensive rooftop eateries in New York to ask if his group could get a table.

    He got a reservation, he said, but also a request: “Make sure to spend money.”

    Executives with corporate expense accounts who used to order $200 bottles of wine are “showing off” and ordering $1,000 ones these days, Roe explained. His friend didn’t want to get in trouble for bringing in a less-profitable party. The restaurant’s private room goes for $12,000 a night. Lately, it is always booked.

    Boosted by a Covid-era tax break-window that closes at the end of the year — and under pressure to cement ties and reassure clients — companies are now spending big on wining and dining current and potential customers.

    “The last two to three years have been incredibly difficult,” said Thomas Donohue, chief marketing officer for Culinary Solutions, a Sterling, Virginia food company whose partners and clients include Starbucks

    (SBUX)
    , Hilton

    (HLT)
    and American Airlines

    (AAL)
    .

    “We wanted to reconnect with these people, we needed splash, engagement,” he saId. The company, which has operations globally, needed something that would make clients “want to get on a plane from Singapore, from Japan” to attend.

    On Jan. 26 Culinary Solutions is hosting elaborate events with celebrity chefs in Washington, DC, Reims, France and Bangkok to celebrate “sous vide” day, the French cooking technique the company specializes in.

    Donohoe declined to disclose costs but noted that in France, “there may be a castle and Champagne caves.”

    The wining and dining surge began last summer and accelerated when many Wall Street workers were ordered back to the office in the fall, said chef Eric Ripert of New York seafood eatery Le Bernardin, a three-star Michelin restaurant that is one of the city’s most expensive.

    “It’s just like when kids go back to school and don’t want to, but then they get excited,” he said. “It’s just like that but with adults. And tequila.”

    Corporations, hedge funds, and especially real estate companies “are realizing the recovery is another year or so away,” said New York event planner Lawrence Scott. “They figure the only way they are going to stay in the biz is entertaining.”

    Events are smaller, say 60 guests instead of 200. “They’re inviting the [clients] who will keep their boats afloat.”

    Le Bernardin’s private rooms have been largely booked for the holidays since late September, Ripert said. And in the restaurant, guests typically opt for the $298 chef’s tasting menu — $468 with wine pairings. Business has specifically been boosted, Ripert’s managers tell him, by the soon-to-expire tax break.

    Dubbed the enhanced deduction, “for 2021 and 2022 only, businesses can generally deduct the full cost of business-related food and beverages purchased from a restaurant. Otherwise, the limit is usually 50% of the cost of the meal,” according to the IRS.

    This kind of spending, of course, is in direct contrast to what most consumers are doing when they’re paying for meals themselves: cutting back sharply. Inflation and gas costs are historically high and recession worries are mounting.

    Meanwhile, the restaurant industry is still struggling with “staffing, food costs and supply issues,” said Food-TV celebrity chef Maneet Chauhan, who owns Indian, Chinese and American restaurants in the Nashville area.

    But companies feel they have to spend to compete and to keep their relationships upbeat, especially after years of lockdowns and Zoom meetings.

    “Everything changed after Covid,” said R. Couri Hay, publicist in New York. “People don’t want to go out anymore, they got lazy. They started to edit events – and when they do go out, they say ‘Wonderful you’re still here, you’re still alive!’ ”

    In particular, companies are scrambling to attract younger guests and the next generation of businesses, Hay said. “They think: You’ve got to do an extravaganza.”

    During the pandemic, group dinners or parties were rare. At first charity events started returning, then weddings. After that, according to restaurateurs and event planners across the country, came bar and bat mitzvahs.

    But now it is bankers, watch manufacturers, real estate investors and executives launching new projects, with manufacturers, retailers and “tech bros” also throwing the more expensive dinners and lavish parties.

    Bill Laurie, an auto-technology supplier, has begun taking current and prospective clients out to dinner again at top Detroit and Dearborn, Michigan restaurants at costs of up to several hundred dollars per person. “It’s not extravagant if you do it right,” he said.

    In this post-Covid era “people want to feel attended to,” Laurie said. And the hospitality goes beyond spending money on them to asking them what they think of the market, or about their family, he said.

    Certainly, there may be some businesses taking a generous view of the IRS rules. The deduction, which was meant to help support restaurants during the pandemic, only applies to restaurant meals, and only if a member of the client company is present. And businesses can’t deduct expenses for meals that are “lavish or extravagant.”

    But, according to the IRS, “an expense isn’t considered lavish or extravagant if it is reasonable based on the facts and circumstances.”

    That definition leaves a lot of wiggle room.

    “Meal expenses won’t be disallowed merely because they are more than a fixed dollar amount,” according to the IRS, “or because the meals take place at deluxe restaurants, hotels, or resorts.”

    But even in this more accommodating environment, client expectations have to be managed, Laurie said. Because of inflation, he can no longer say, “order anything on the menu.”

    Now he says, “even if caviar is on the menu, caviar is not on the menu.”

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  • Starbucks says higher prices, customizable beverages will carry it through potential economic winter

    Starbucks says higher prices, customizable beverages will carry it through potential economic winter

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    Ever since Starbucks Corp. rolled out longer-term financial targets in September, Wall Street has wondered how the coffee chain might meet what analysts say were ambitious goals, as rising prices drain consumer spending. For at least the year ahead, executives on Thursday called out three ways to get there: higher prices, younger customers and cold, customizable beverages.

    For the fiscal year ahead, executives for the coffee chain on Thursday said they expected global same-store sales to be “near the high end” of its long-term target of between 7% to 9% growth. FactSet expects growth of 8.6%.

    When an analyst asked what gave management confidence in that target, interim Chief Executive Howard Schultz said that its coffee was an “affordable luxury,” and that it was armed with a loyalty program that it didn’t have in years past. And they said its customers were getting younger, not older.

    “Not only has it gotten younger, but that young, Gen Z customer tends to have significantly more discretionary money at their disposal,” he said. “And their loyalty to Starbucks has been quite significant and predicted.”

    He said Starbucks
    SBUX,
    +0.12%

    had raised prices by nearly 6% over the past 12 months and hadn’t seen demand subside. And he said cold coffee beverages made up 76% percent of total drink sales in its U.S. company-owned stores. In the fourth quarter, more than half of beverages overall in those stores were customized, leading to $1 billion in sales a year for add-on syrups, foams and other ingredients.

    “I think customization, which we spoke a lot about in our prepared remarks, is obviously giving us the ticket is becoming more accretive,” he said.

    Management said they expect U.S. same-store sales growth of 7% to 9% for the year ahead. For China, they’re banking on “outsize” growth for the metric — interrupted by a decrease in the first-quarter — as the nation potentially emerges from pandemic-related lockdowns.

    For overall revenue, they expect gains of between 10% and 12%. Management also said they would resume their buyback program in fiscal 2023.

    Even as the Federal Reserve tries to chart a path to lower prices, Starbucks is the latest company to say it still has “pricing power,” or the ability to charge customers more. Snack maker Mondelez International
    MDLZ,
    -0.93%
    ,
    earlier in the week, said it planned to raise prices through next year. Similarly, its own chief executive also described its snacks as an “affordable indulgence.

    Prior to the call, Starbucks reported fiscal fourth-quarter results that beat expectations, helped by a boost in U.S. sales and higher prices.

    The coffee chain reported net income of $878 million, or 76 cents a share, compared with $1.76 billion, or $1.49 a share, in the same quarter last year. Revenue rose 3% to $8.4 billion, compared with $8.15 billion in the prior-year quarter.

    Same-store sales rose 7% worldwide, helped largely by bigger ticket sizes, even as actual transaction volume remained muted. They were up 11% in the U.S. But international same-store sales fell 5%, with a 16% drop in China.

    Excluding restructuring, impairment and other costs, Starbucks earned 81 cents per share, compared with 99 cents a year earlier. U.S. members of its loyalty program who were active for three months rose 16% to 28.7 million.

    Analysts polled by FactSet expected Starbucks to report adjusted earnings per share of 72 cents, on revenue of $8.323 billion. Same-store sales were expected to rise 4.2%.

    Shares rose 2.4% after hours.

    As with other restaurants and retailers, Starbucks’ sales this year have been helped by price increases. Analysts have also said higher-income consumers, who might not mind higher prices as much, as well as demand for cold beverages, have propelled demand. While China’s COVID-19 restrictions have weighed on sales, analysts say demand trends are strong elsewhere.

    “The U.S. business is humming, and the China risk is increasingly understood,” Wedbush analyst Nick Setyan wrote in a research note ahead of Starbucks’ earnings.

    The earnings report comes as Starbucks battles a nascent unionization push at some of its stores. Some bargaining efforts between the company and the union members have stalled, amid allegations from both of bad-faith negotiations. The company over the past year has spent more to raise employee pay and rolled out other incentives at non-union stores.

    Starbucks stock has tumbled 27% so far this year. The S&P 500 Index
    SPX,
    -1.06%
    ,
    by comparison, is down around 22%.

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  • How the Federal Reserve’s rate hike impacts your holiday spending plans: ‘It’s not the time to overspend’

    How the Federal Reserve’s rate hike impacts your holiday spending plans: ‘It’s not the time to overspend’

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    It is three weeks before Black Friday, but the Federal Reserve is about to make the post-holiday debt hangover a little more intense.

    By the time the latest rate hikes filter through the very rate-sensitive credit card industry and pump up customers’ annual percentage rates a little more, experts say it will be some point in December 2022 or January 2023. Right in time for many holiday gifts and expenses to post on credit cards bills — and there to make the costs of a carried balance a little extra expensive.

    Every year, many people accumulate credit card debt through the holiday season, pay it off in the early part of the following year and then repeat the process.

    What’s different now is the presence of four-decade high inflation, coupled with fast-rising interest rates that the Fed hopes will ultimately cool those rising prices, although without sending the economy to a recessionary thud.

    Wednesday’s rate move is the fourth straight 75-basis-point rate hike to the federal funds rate, taking it to the 3.75% -4% range, when it was near zero last year’s holiday season. By now, Americans are all too acquainted with 2022’s fast-rising interest rates. They just haven’t gone through a Christmas and Hanakkuh with it yet.

    “It’s not the time to overspend and have a problem with paying your bills later. We know the economy is sending mixed messages,” said Michele Raneri, vice president of financial services research and consulting at TransUnion
    TRU,
    -4.31%
    ,
    one of the country’s three major credit reporting companies.

    It’s extra important to think through a holiday budget and how much relies on credit, she said. “People need to think about how much they can afford to repay and how long it will take to repay it.”

    Holiday spending could be the same as 2021 for many people — but not everyone

    Last month, third-quarter earnings from major banks like JPMorgan Chase & Co.
    JPM,
    -0.92%
    ,
    Wells Fargo
    WFC,
    -0.15%
    ,
    Citibank
    C,
    -1.45%

    and Bank of America
    BAC,
    -0.30%

    indicated consumer finances, on the whole, are not yet showing cracks under inflation’s strains. (Other numbers show the strain, like the personal savings rate that’s been dwindling.)

    Now, two forecasts suggest many people ready to spend the same amount for this year’s holiday cheer as they did last year.

    People are planning to spend an average $1,430 on gifts, travel and entertainment this year, which is around the $1,447 spent last year, according to PwC researchers. Three-quarters of people said they were planning to spend the same or more than last year and respondents said credit cards were one of their top ways to pay.

    Compared to last year, credit card balances are getting bigger, more people are sitting on balances and debt costs are getting pricier.

    By another measure, Americans will pay an average $1,455 on holiday-related gifts and experiences, essentially flat from last year, say Deloitte researchers.

    More than one-third of surveyed consumers say their financial outlook is worse than the same point last year. Nearly one-quarter of people were concerned about credit card debt as of late September, Deloitte’s numbers show in an ongoing tracking of consumer mood.

    It’s understandable to see the concern with households amassing a collective $890 billion in credit card debt through the second quarter. Compared to last year, balances are getting bigger, more people are sitting on balances and debt costs are getting pricier because the interest rates applied to those balances are rising.

    When people were carrying a credit card balance month to month, the sum was $5,474 on average, according to Raneri. That’s through the end of September and it’s a nearly 13% rise year over year, she said. The 164 million people carrying a balance is a 5% increase from last year, she noted.

    Credit cards carrying a balance during the third quarter had an average 18.43% APR, Federal Reserve data shows. That’s up from 16.65% in the second quarter and up from 17.13% in 2021’s third quarter.

    How the Fed influences credit card rates

    Credit card issuers typically determine their rates by applying a “prime rate” — typically three percentage points on top of the federal funds rate — and the issuer’s profit margin, said Ted Rossman, senior industry analyst at Bankrate.com.

    By late October, the rate on new card offers was 18.73%, according to Bankrate data. At this point last year, it was 16.31%, Rossman said. In a few weeks, the rates on new offers should beat the all-time record of an average 19% APR, exclusive to new offers, he added.

    While it can take a billing cycle or two for a higher APR to make its way to an existing credit card account, Rossman noted the APRs on new offers could rise in a matter of days.

    Here’s a hypothetical to show how much more expensive credit card debt becomes with every extra hike. Suppose the $5,474 balance is on a credit card with the current 18.73% average. If a person has to resort to minimum payments, Rossman said, they’d be paying $7,118 just in interest to pay off the debt.

    In a few weeks, the rates on new credit card offers should beat the all-time record of an average 19% APR.

    What if the 18.73% APR gets kicked up 75 basis points to 19.48%? If that same borrower has to pay minimums, they are now paying $7,417 in interest to snuff the principal debt of $5,474, Rossman said.

    The example has its limits because people may pay more than the minimum and they may incur more credit card debt as they pay off the old one. But it shows a bigger point: “Unfortunately, anybody dealing with credit card debt is a loser from the series of rate hikes. It was already expensive. It’s getting more so,” Rossman said.

    When do rate hikes stop?

    While decisions during the Fed’s November meeting can have a ripple effect on holiday-time borrowing costs, observers say the real question about Wednesday is the clues Federal Reserve Chairman Jerome Powell drops for what’s next. The central bank’s committee voting on interest rate increases reconvenes in mid-December.

    On Wednesday, the Fed said in a statement it expected further rate increases, but also said it would be watching to see if there were lag effects with its tightening policies, which could slow or limit the total amount of increases.

    “People, when they hear lags, they think about a pause. It’s very premature, in my view, to think about or be talking about pausing our rate hike. We have a ways to  go,” Powell told reporters at a Wednesday afternoon press conference.

    The economy is strong enough to handle higher rates, Powell said. For one thing, households have “strong balance sheets” and “strong spending power,” he noted.

    Stock markets first jumped higher after the latest interest rate announcement. But they gave up the gains — and then some — by the end of the day. The Dow Jones Industrial Average
    DJIA,
    -1.55%

    was down more than 500 points, or 1.6% while the S&P 500
    SPX,
    -2.50%

    was down 2.5% and the Nasdaq Composite
    COMP,
    -3.36%

    closed 3.4% lower.

    Top economists in major North American-based banks forecasted the Fed will keep raising interest rates “until the first quarter of next year before potentially lowering rates through the end of 2023,” Sayee Srinivasan, chief economist at the American Bankers Association, the banking sector’s trade association, said ahead of Wednesday’s latest rate hike.

    Top economists polled as part of a banking industry panel expect Fed rate increases through at least the first quarter of 2023.

    The forecast, coming through an ABA advisory committee, is no sure thing. “Everything depends on the ability of the Fed to bring inflation down, so that will remain their clear priority,” said Srinivasan.

    Meanwhile, rising costs may cause more people to put the holiday cheer on plastic, even their decorations. The majority of Christmas tree growers in one poll are expecting wholesale prices to climb 5% to 15% for this season.

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  • 20 dividend stocks that may be safest if the Federal Reserve causes a recession

    20 dividend stocks that may be safest if the Federal Reserve causes a recession

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    Investors cheered when a report last week showed the economy expanded in the third quarter after back-to-back contractions.

    But it’s too early to get excited, because the Federal Reserve hasn’t given any sign yet that it is about to stop raising interest rates at the fastest pace in decades.

    Below is a list of dividend stocks that have had low price volatility over the past 12 months, culled from three large exchange traded funds that screen for high yields and quality in different ways.

    In a year when the S&P 500
    SPX,
    -0.40%

    is down 18%, the three ETFs have widely outperformed, with the best of the group falling only 1%.

    Read: GDP looked great for the U.S. economy, but it really wasn’t

    That said, last week was a very good one for U.S. stocks, with the S&P 500 returning 4% and the Dow Jones Industrial Average
    DJIA,
    -0.32%

    having its best October ever.

    This week, investors’ eyes turn back to the Federal Reserve. Following a two-day policy meeting, the Federal Open Market Committee is expected to make its fourth consecutive increase of 0.75% to the federal funds rate on Wednesday.

    The inverted yield curve, with yields on two-year U.S. Treasury notes
    TMUBMUSD02Y,
    4.540%

    exceeding yields on 10-year notes
    TMUBMUSD10Y,
    4.064%
    ,
    indicates investors in the bond market expect a recession. Meanwhile, this has been a difficult earnings season for many companies and analysts have reacted by lowering their earnings estimates.

    The weighted rolling consensus 12-month earning estimate for the S&P 500, based on estimates of analysts polled by FactSet, has declined 2% over the past month to $230.60. In a healthy economy, investors expect this number to rise every quarter, at least slightly.

    Low-volatility stocks are working in 2022

    Take a look at this chart, showing year-to-date total returns for the three ETFs against the S&P 500 through October:


    FactSet

    The three dividend-stock ETFs take different approaches:

    • The $40.6 billion Schwab U.S. Dividend Equity ETF
      SCHD,
      +0.15%

      tracks the Dow Jones U.S. Dividend 100 Indexed quarterly. This approach incorporates 10-year screens for cash flow, debt, return on equity and dividend growth for quality and safety. It excludes real estate investment trusts (REITs). The ETF’s 30-day SEC yield was 3.79% as of Sept. 30.

    • The iShares Select Dividend ETF
      DVY,
      +0.45%

      has $21.7 billion in assets. It tracks the Dow Jones U.S. Select Dividend Index, which is weighted by dividend yield and “skews toward smaller firms paying consistent dividends,” according to FactSet. It holds about 100 stocks, includes REITs and looks back five years for dividend growth and payout ratios. The ETF’s 30-day yield was 4.07% as of Sept. 30.

    • The SPDR Portfolio S&P 500 High Dividend ETF
      SPYD,
      +0.60%

      has $7.8 billion in assets and holds 80 stocks, taking an equal-weighted approach to investing in the top-yielding stocks among the S&P 500. It’s 30-day yield was 4.07% as of Sept. 30.

    All three ETFs have fared well this year relative to the S&P 500. The funds’ beta — a measure of price volatility against that of the S&P 500 (in this case) — have ranged this year from 0.75 to 0.76, according to FactSet. A beta of 1 would indicate volatility matching that of the index, while a beta above 1 would indicate higher volatility.

    Now look at this five-year total return chart showing the three ETFs against the S&P 500 over the past five years:


    FactSet

    The Schwab U.S. Dividend Equity ETF ranks highest for five-year total return with dividends reinvested — it is the only one of the three to beat the index for this period.

    Screening for the least volatile dividend stocks

    Together, the three ETFs hold 194 stocks. Here are the 20 with the lowest 12-month beta. The list is sorted by beta, ascending, and dividend yields range from 2.45% to 8.13%:

    Company

    Ticker

    12-month beta

    Dividend yield

    2022 total return

    Newmont Corp.

    NEM,
    -0.78%
    0.17

    5.20%

    -30%

    Verizon Communications Inc.

    VZ,
    -0.07%
    0.22

    6.98%

    -24%

    General Mills Inc.

    GIS,
    -1.47%
    0.27

    2.65%

    25%

    Kellogg Co.

    K,
    -0.93%
    0.27

    3.07%

    22%

    Merck & Co. Inc.

    MRK,
    -1.73%
    0.29

    2.73%

    35%

    Kraft Heinz Co.

    KHC,
    -0.56%
    0.35

    4.16%

    11%

    City Holding Co.

    CHCO,
    -1.45%
    0.38

    2.58%

    27%

    CVB Financial Corp.

    CVBF,
    -1.24%
    0.38

    2.79%

    37%

    First Horizon Corp.

    FHN,
    -0.18%
    0.39

    2.45%

    53%

    Avista Corp.

    AVA,
    -7.82%
    0.41

    4.29%

    0%

    NorthWestern Corp.

    NWE,
    -0.21%
    0.42

    4.77%

    -4%

    Altria Group Inc

    MO,
    -0.18%
    0.43

    8.13%

    4%

    Northwest Bancshares Inc.

    NWBI,
    +0.10%
    0.45

    5.31%

    11%

    AT&T Inc.

    T,
    +0.63%
    0.47

    6.09%

    5%

    Flowers Foods Inc.

    FLO,
    -0.44%
    0.48

    3.07%

    7%

    Mercury General Corp.

    MCY,
    +0.07%
    0.48

    4.38%

    -43%

    Conagra Brands Inc.

    CAG,
    -0.82%
    0.48

    3.60%

    10%

    Amgen Inc.

    AMGN,
    +0.41%
    0.49

    2.87%

    23%

    Safety Insurance Group Inc.

    SAFT,
    -1.70%
    0.49

    4.14%

    5%

    Tyson Foods Inc. Class A

    TSN,
    -0.40%
    0.50

    2.69%

    -20%

    Source: FactSet

    Any list of stocks will have its dogs, but 16 of these 20 have outperformed the S&P 500 so far in 2022, and 14 have had positive total returns.

    You can click on the tickers for more about each company. Click here for Tomi Kilgore’s detailed guide to the wealth of information available free on the MarketWatch quote page.

    Don’t miss: Municipal bond yields are attractive now — here’s how to figure out if they are right for you

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  • Heineken shares tumble on cautious outlook, shortfall in beer volumes growth

    Heineken shares tumble on cautious outlook, shortfall in beer volumes growth

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    Heineken NV shares fell Wednesday after it said organic beer volumes rose in the third quarter by 8.9%, missing market consensus expectations of 12% as taken from its website, and that its outlook was cautious.

    Shares at 0730 GMT were down 9% at EUR80.24.

    The Dutch brewer
    HEIA,
    -9.96%

    HEIO,
    -9.19%

    said said that the weaker than expected results were driven by low-single-digit volume growth in Africa, the Middle East, Europe and the Americas, though the Asia-Pacific region delivered a strong recovery from pandemic-related restrictions with total beer volume growth of 89.6%.

    Net revenue, which excludes excise tax expenses–rose to 7.79 billion euros ($7.76 billion) in the quarter from EUR6.03 billion last year. A company-compiled consensus forecast had seen net revenue at EUR7.88 billion.

    In the nine-month period, net revenue rose 23% to EUR21.27 billion while net profit fell to EUR2.2 billion from EUR3.03 billion. Net profit last year was boosted by an exceptional gain of EUR1.27 billion from the revaluation of a stake in United Breweries in India

    The company backed its guidance for 2022 of a stable-to-modest sequential improvement in adjusted operating profit margin, but didn’t reiterate its previously provided 2023 guidance of adjusted operating profit organic growth in the range of mid- to high-single digits.

    “We increasingly see reasons to be cautious on the macroeconomic outlook, including some signs of softness in consumer demand. We remain vigilant and confident in our EverGreen strategy,” Chairman and Chief Executive Dolf van den Brink said.

    The company said it maintains its efforts to offset input cost inflation with pricing.

    Write to Dominic Chopping at dominic.chopping@wsj.com

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  • Consumers pay 14.1% more on average for pumpkin-spice products

    Consumers pay 14.1% more on average for pumpkin-spice products

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    We may be paying a price for our pumpkin-spice cravings.

    A new study from the MagnifyMoney.com website has found that retailers routinely charge more for pumpkin-spice items than for the standard versions of those same products — in fact, a lot more. On average, the pumpkin-spice “tax,” as MagnifyMoney.com dubs it, is 14.1%.

    That’s a significant increase from 2020, which was the last time MagnifyMoney looked at the pumpkin-spice pricing differential. At that time, the “tax” was 8.8%.

    “I think companies are finding it’s a great way to capitalize on a seasonal trend,” said Ismat Mangla, executive editor of MagnifyMoney.com. “As long as consumers are willing to pay for it, they can take advantage of it.” MagnifyMoney.com, which is owned by LendingTree, offers information on how to manage and grow your money.

    Craig Agranoff, a Florida-based marketing expert, put it this way: “It’s Retailing 101.”

    Some retailers really push the pumpkin-spice upcharge to the upper limits, the 2022 study noted. A case in point: Trader Joe’s, the supermarket chain beloved for its low prices, charges 161.1% more for its Pumpkin Spiced Teeny Tiny Pretzels than for its Honey Wheat Pretzel Sticks. The retailer also charges 49.9% more for its Pumpkin Spice Hummus than for its Mediterranean Style Hummus.

    And what about Starbucks
    SBUX,
    -1.60%
    ,
    the coffee chain that made pumpkin spice a household favorite? The study found that it levies an 18.3% “tax” on its ever-popular Pumpkin Spice Latte (or PSL), with a standard 16-ounce latte running $5.45 and the PSL costing $6.45.

    Trader Joe’s and Starbucks didn’t respond to a MarketWatch request for comment.

    Agranoff said consumers are probably willing to pay more for pumpkin-spice products without complaining because the products are not considered essentials. By contrast, consumers tend to be very sensitive when it comes to price increases on items they need to buy on a regular basis, such as milk or gasoline.

    Still, not every retailer is asking consumers to shell out more for pumpkin-spice products. Target
    TGT,
    -1.28%

    charged less for several items versus the standard ones, the MagnifyMoney.com study found. One example: A bag of Pepperidge Farm Milano pumpkin-spice cookies was 14.3% cheaper than the traditional Milano cookies at Target.

    Regardless of whether the price is higher or lower, Mangla of MagnifyMoney.com isn’t one to buy these products. “Personally, I’m over pumpkin spice,” she said.

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  • Halloween spending expected to increase by $500 million — as candy prices soar at the highest rate on record

    Halloween spending expected to increase by $500 million — as candy prices soar at the highest rate on record

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    It’s going to be a big year for Halloween, despite millions of Americans feeling under financial pressure due to inflation.

    Total spending is expected to hit $10.6 billion, an increase of 5% or $500 million on last year, the National Retail Federation estimates. That’s up $2 billion or 20% on the $8.8 billion Halloween expenditure in 2019 before the COVID-19 pandemic. 

    Spending on costumes expect to reach $3.6 billion this year, the NRF survey finds, the highest since 2017. Adult costume spending could reach $1.7 billion this year, $200 million more than last year.

    More than half (57%) of Americans said that inflation did impact their Halloween spending, according to a separate LendingTree Halloween spending survey. In fact, nearly a quarter of this group said they were buying less candy.

    Inflation was 8.2% in September compared to last year, according to Bureau of Labor Statistics data. It was among the highest level in the past four decades.

    Candy and chewing gum rose 13.1% year-on-year in September, the highest increase on record, the BLS said. To put that in context: Candy and chewing gum increased 13% from December 1997 to December 2006.

    Candy and chewing gum rose 13.1% year-on-year in September, the highest increase on record.

    For those who haven’t started, the competition was already on. In July, Home Depot
    HD,
    +2.13%

    announced that its popular 12-foot skeleton was sold out, three months before the celebration. 

    A Home Depot spokesperson confirmed the initial sellout of the skeleton in summer, and said the company has been releasing more of these items periodically since then.

    Supply-chain disruptions could also complicate the competition. During Hershey’s
    HSY,
    +0.57%

    second-quarter earnings call in July, Chief Executive Officer Michele Buck said the candy manufacturer had to prioritize the everyday candy packaging over the Halloween ones. She said that decision was “critical to enable us to increase advertising and merchandising levels.”

    In an email to MarketWatch, however, a Hershey’s spokesperson said this decision was not a sign of shortage, adding that the brand had produced more candies for the season than they had in previous years, as Halloween demand remains high. 

    “Like every season over the past few years, sell-through at retail remains high with people purchasing candy, décor and other seasonal items earlier and more often. As a result, seasonally packaged candy may be more limited on the shelf as we get to the final week of the season. Fortunately, the same great brands in snack sizes are available to help fill trick-or-treat bags and buckets,” she said.  

    On average, Americans plan to spend between $100 and $169 on Halloween candy, décor, cards and costumes.

    On average, Americans plan to spend $100 on average for Halloween candy, décor, cards and costumes, the National Retail Federation said. LendingTree estimates that households will spend $169 this year, with six-figure salary earners and parents with young children planning to spend the most — $340 and $309 respectively.

    More than a third of the consumers surveyed admit they plan to spend more than they can afford this year. Generation Z — those aged 18 to 24 — and parents with younger children are the most likely to admit to overspending.

    “With the worst of the pandemic further in the rearview mirror, people are excited to get back to spending on the things they love most —, particularly the things they maybe couldn’t fully enjoy over the last few years,” LendingTree chief credit analyst Matt Schulz said.

    The most common reason for overspending: 44% of respondents said they spent more than they had expected, while 34% said they were making their children happy.

    The NRF concluded that 40% of people are shopping at discount stores this Halloween, 36% at specialty Halloween costume stores, and 31% online. Another 11% said they will shop at thrift stores and resale shops.

    “Social media is playing an increasingly important role in consumer behavior, and Halloween is no different,” Phil Rist, executive vice-president of strategy at Prosper Insights & Analytics, said. “Younger consumers, particularly those under the age of 25, will look to platforms like Instagram and TikTok for costume inspiration this year.”

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  • A heckler threw a beer can at her. But comedian Ariel Elias got the last laugh — and sip | CNN

    A heckler threw a beer can at her. But comedian Ariel Elias got the last laugh — and sip | CNN

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    CNN
     — 

    In her 11 years of doing standup, this was by far the worst heckler Ariel Elias had ever encountered.

    The comedian’s gig at the Uncle Vinnie’s Comedy Club in Point Pleasant Beach, New Jersey on Oct. 8 started like any other, so she never anticipated becoming the subject of a viral video and the latest example of the comedy stage becoming the scene of an unsettling incident.

    Elias had spent the majority of her 20-minute set talking about female body image before launching into a pre-planned question-and-answer portion of her set. A joke she ends on appears on some merchandise she sells after the show.

    That’s when a woman in the audience, seated at a large table of people attending a raucous birthday party, yelled to her on stage: “Did you vote for Trump?”

    “I wasn’t talking about politics,” she tells CNN. “I think I was honestly talking about my period. It just felt like she was looking for a fight, and I really don’t think I did anything to like elicit that.”

    The woman was kicked out. Then the man seated next to her hurled a beer can – fast – at Elias’ head.

    In the aforementioned video of the moment, many in the audience react with shock.

    Elias says she didn’t see the beer fly by her head, but she heard it loudly thump behind her.

    “I just like heard it against the wall and then I felt the back of my legs were wet, and I was trying to figure out what happened,” she says. “And then I looked down and I saw the beer can and put it together and people were furious that that had happened, which was nice. So I’m glad a mob mentality didn’t take over against me.”

    In the moment, she picked the can up and found it was still heavy with beer.

    “I remember thinking, ‘Don’t let the adrenaline win. Take a sip. Be brave,’” she says. “When I thought that there was still beer in there, I thought, you know what? I’d never needed a drink more in my life. And I think this is kind of the only way to get out of this because I still have five minutes left of my set.”

    She knows that she had the option to step away from the stage and that “nobody would’ve been mad at me.” But, she thought, what about her stickers?

    “I sell merch after the show, and my my best-selling sticker is based on my closing joke. I was like, ‘Well, I have to do the joke if I want people to come and buy stickers afterwards.’”

    So she finished.

    Later, Elias says, “it was much scarier once I got home.” She had to watch the video to realize how hard and fast the beer had been thrown.

    “To be honest, I’m not the best at processing my emotions. So I think probably just like in six days I’ll cry while watching ‘Man vs. Food,’” she says, laughing.

    Her friends and family have been supportive; her parents told her they were proud and her fellow comics keep checking in on her.

    “Last night, I did a couple of spots in the city and everybody asked like, ‘Are you okay?’ Which I think is very much the question that I need to be asked,” she says. “Because the answer is, I don’t know yet.”

    While Elias has decided not to press charges, the comedy club is. And although she doesn’t want to back to the town where it happened, Elias says she absolutely loves doing standup and will continue on.

    “Please don’t throw things at me,” she says. “I love stand up so much. It’s my favorite thing in the world. I love traveling and being in front of people who are different from me.”

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  • Prosecutors ask jury to recommend death sentence for Parkland shooter | CNN

    Prosecutors ask jury to recommend death sentence for Parkland shooter | CNN

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    CNN
     — 

    Prosecutors have called on a Florida jury to recommend the Parkland school shooter be put to death, saying in a closing argument Tuesday he meticulously planned the February 2018 massacre, and that the facts of the case outweigh anything in his background that defense attorneys claim warrant a life sentence.

    “What he wanted to do, what his plan was and what he did, was to murder children at school and their caretakers,” lead prosecutor Michael Satz said of Nikolas Cruz, who pleaded guilty to 17 counts of murder and 17 counts of attempted murder for the shooting at Marjory Stoneman Douglas High School, in which 14 students and three school staff members were killed. “That’s what he wanted to do.”

    But Cruz “is a brain damaged, broken, mentally ill person, through no fault of his own,” defense attorney Melisa McNeill said in her own closing argument, pointing to the defense’s claim that Cruz’s mother used drugs and drank alcohol while his mother was pregnant with him, saying he was “poisoned” in her womb.

    “And in a civilized humane society, do we kill brain damaged, mentally ill, broken people?” McNeill asked Tuesday. “Do we? I hope not.”

    With closing arguments, the monthslong sentencing phase of Cruz’s trial is nearing its end, marking prosecutors’ last chance to convince the jury to recommend a death sentence and defense attorneys’ last opportunity to lobby for life in prison without parole.

    Prosecutors have argued Cruz’s decision to commit the deadliest mass shooting at an American high school was premeditated and calculated, while Cruz’s defense attorneys have offered evidence of a lifetime of struggles at home and in school.

    Each side was allotted two and a half hours to make their closing arguments.

    Jury deliberations are expected to begin Wednesday, during which time jurors will be sequestered, per Broward Circuit Judge Elizabeth Scherer.

    If they choose to recommend a death sentence, the jurors must be unanimous, or Cruz will receive life in prison without the possibility of parole. If the jury does recommend death, the final decision rests with Judge Scherer, who could choose to follow the recommendation or sentence Cruz to life.

    In his remarks, Satz outlined prosecutors’ reasoning, including the preparations Cruz made. For a “long time” prior to the shooting, Satz said, Cruz thought about carrying it out.

    Revisiting ground covered in the trial, the prosecutor said Cruz researched mass shootings and their perpetrators, including those at a music festival in Las Vegas; at a movie theater in Aurora, Colorado; at Virginia Tech; and at Colorado’s Columbine High School.

    Cruz modified his AR-15 to help improve his marksmanship; he accumulated ammunition and and magazines; and he searched online for information about how long it would take police to respond to a school shooting, Satz said.

    Then, the day of, Satz said, Cruz hid his tactical vest in a backpack and took an Uber to the school, wearing a Marjory Stoneman Douglas JROTC polo shirt to blend in. Based on his planning, he told the Uber driver to drop him off at a specific pedestrian gate, knowing it would be open soon before school let out.

    “All these details he thought of, and he did,” Satz said.

    Satz also detailed a narrative of the shooting, which he called a “systematic massacre,” recounting how the shooter killed or wounded each of his victims, whose families and loved ones filled the courtroom gallery. Prosecutors also showed jurors a video of the shooting, which was not shown to the public.

    Cruz, wearing a striped sweater and flanked by his public defenders, looked on expressionless, occasionally looking down at the table in front of him or talking to one of his attorneys.

    “The appropriate sentence for Nikolas Cruz is the death penalty,” Satz concluded.

    In her own statement, McNeill stressed to jurors that defense attorneys were not disputing that Cruz deserves to be punished for the shooting.

    “We are asking you to punish him and to punish him severely,” she said. “We are asking you to sentence him to prison for the rest of his life, where he will wait to die, either by natural causes or whatever else could possibly happen to him while he’s in prison.”

    The 14 slain students were: Alyssa Alhadeff, 14; Martin Duque Anguiano, 14; Nicholas Dworet, 17; Jaime Guttenberg, 14; Luke Hoyer, 15; Cara Loughran, 14; Gina Montalto, 14; Joaquin Oliver, 17; Alaina Petty, 14; Meadow Pollack, 18; Helena Ramsay, 17; Alex Schachter, 14; Carmen Schentrup, 16; and Peter Wang, 14.

    Geography teacher Scott Beigel, 35; wrestling coach Chris Hixon, 49; and assistant football coach Aaron Feis, 37, also were killed – each while running toward danger or trying to help students to safety.

    The lengthy trial – jury selection began six months ago, in early April – has seen prosecutors and defense attorneys present evidence of aggravating factors and mitigating circumstances, reasons Cruz should or should not be put to death.

    The state has pointed to seven aggravating factors, including that the killings were especially heinous, atrocious or cruel, as well as cold, calculated and premeditated, Satz said Tuesday. Other aggravating factors include the fact the defendant knowingly created a great risk of death to many people and that he disrupted a lawful government function – in this case, the running of a school.

    Together, these aggravating factors “outweigh any mitigation about anything about the defendant’s background or character,” Satz said.

    Satz rejected the mitigating circumstances presented during trial by the defense, including that Cruz’s mother smoked or used drugs while pregnant with him. Those factors would not turn someone into a mass murderer, Satz argued, adding it was the jury’s job to weigh the credibility of the defense witnesses who testified to those claims.

    Satz cast doubt on the defense’s other proposed mitigators. In response to a claim that Cruz has neurological or intellectual deficits, Satz pointed to the gunman’s ability to carefully research and prepare for the Parkland shooting.

    In response to claims Cruz was bullied by his peers, Satz argued Cruz was an aggressor, pointing to testimony that he walked around in high school with a swastika drawn on his backpack, along with the N-word and other explicit language.

    “Hate is not a mental disorder,” Satz said.

    During trial, prosecutors presented evidence showing the gunman spent months searching online for information about mass shootings and left behind social media comments sharing his express desire to “kill people,” while Google searches illustrated how he sought information about mass shootings. On YouTube, Cruz left comments like “Im going to be a professional school shooter,” and promised to “go on a killing rampage.”

    “What one writes,” Satz said, referencing Cruz’s online history Tuesday, “what one says, is a window to someone’s soul.”

    Public defenders assigned to represent Cruz have asked the jury to take into account his troubled history, from a dysfunctional family life to serious mental and developmental issues, contending he was born with fetal alcohol spectrum disorder.

    On Tuesday, McNeill reiterated the defense’s case, starting with one of the first witnesses called in August, Cruz’s older sister, Danielle Woodard. Woodard testified their mother, Brenda Woodard, used drugs and drank alcohol while pregnant with him.

    “Her brother, Nikolas Cruz never recovered from the drugs and the alcohol that Brenda put in her polluted womb,” McNeill said Tuesday.

    Several neighbors who knew Cruz when he lived with his late adoptive mother, Lynda Cruz, also testified about watching him grow up, McNeill reminded jurors Tuesday. They shared how they saw him behaving in ways they described as “strange” or “weird,” or saw him being bullied. One neighbor, McNeill said, had told jurors that “from the moment he set eyes on Nikolas, he could tell something was not right with him.”

    McNeill also revisited Cruz’s academic struggles throughout his childhood, recounting the “many people” – including educators and school counselors or psychologists – who testified they had concerns about his bad behavior or poor performance in school.

    Assistant Public Defender Melisa McNeill gives her closing argument in the trial of the Parkland shooter on Tuesday.

    Those struggles continued into adolescence, McNeill said: When he was 15 years old, Cruz’s skills in reading, writing and math were well below the levels they should have been. These academic struggles, along with his anxiety and depression, were indicators, McNeill said, of fetal alcohol spectrum disorder.

    Various counselors and psychiatrists also testified, McNeill reminded the jury, offering their observations from years of treating or interacting with Cruz. One, former Broward County school district counselor John Newnham, testified that while Lynda Cruz was a caring mother, after the death of her husband, she was “overwhelmed” and did not take advantage of the support available.

    This was a factor in Cruz’s failure to receive the proper help, McNeill told jurors Tuesday.

    “Everybody told you that Lynda never truly appreciated what was wrong with Nikolas … But the evidence has shown you that Lynda consistently minimized, enabled, ignored, excused, defended and ultimately lied to the very people that were trying to help Nikolas.”

    “Sometimes the people who deserve the least amount of compassion and grace and remorse are the ones who should get it,” she said.

    As part of the prosecution’s case, family members of the victims were given the opportunity this summer to take the stand and offer raw and emotional testimony about how Cruz’s actions had forever changed their lives. At one point, even members of Cruz’s defense team were brought to tears.

    “I feel I can’t truly be happy if I smile,” Max Schachter, the father of 14-year-old victim Alex Schachter, testified in August. “I know that behind that smile is the sharp realization that part of me will always be sad and miserable because Alex isn’t here.”

    The defense’s case came to an unexpected end last month when – having called just 26 of 80 planned witnesses – public defenders assigned to represent Cruz abruptly rested, leading the judge to admonish the team for what she said was unprofessionalism, resulting in a courtroom squabble between her and the defense (the jury was not present).

    Defense attorneys would later file a motion to disqualify the judge for her comments, arguing in part they suggested the judge was not impartial and Cruz’s right to a fair trial had been undermined. Prosecutors disagreed, writing “judicial comments, even of a critical or hostile nature, are not grounds for disqualification.”

    Scherer ultimately denied the motion.

    Prosecutors then presented their rebuttal, concluding last week following a three-day delay attributed to Hurricane Ian.

    Their case included footage of Cruz telling clinical neuropsychologist Dr. Robert Denney he chose to carry out the shooting on Valentine’s Day because he “felt like no one loved me, and I didn’t like Valentine’s Day and I wanted to ruin it for everyone.”

    Denney, who spent more than 400 hours with the gunman, testified for the prosecution that he concluded Cruz has borderline personality disorder and anti-social personality disorder.

    But Cruz did not meet the criteria for fetal alcohol spectrum disorder, as the defense has contended, Denney testified, accusing Cruz of “grossly exaggerating” his “psychiatric problems” in tests Denney administered.

    When read the list of names of the 17 people killed and asked if fetal alcohol spectrum disorder explained their murders, Denney responded “no” each time.

    Correction: An earlier version of this story misspelled the first name of defense attorney Melisa McNeill.

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  • Texas Pete maker sued for crafting its hot sauce in — gasp — North Carolina

    Texas Pete maker sued for crafting its hot sauce in — gasp — North Carolina

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    Some Texas Pete customers are hot under the collar about where this sauce is actually cooked up. 

    A California man has filed a class action suit against the hot sauce maker, claiming it “capitalizes on consumers’ desire to partake in the culture and authentic cuisine of one of the most prideful states in America” with a name and label that plays up Texas — yet, the product is actually whipped up in Winston-Salem, N.C.

    Hey, at least it wasn’t made in New York City!

    The complaint filed by the Clarkson Law Firm on behalf of customer Philip White says that the dissatisfied customer bought a bottle of Texas Pete for about $3 at a Ralph’s Supermarket in September 2021, because he believed it was made in Texas. The suit claims that White would have passed over the bottle of Texas Pete if he knew it really came from North Carolina.

    But with a name like Texas Pete, as well as a label featuring “distinct Texan imagery” like the “lone star” from the Texas flag and a cowboy, the suit says that consumers like White looking for an authentic Texas hot sauce are being misled. 

    “Because there is nothing ’Texas’ about Texas Pete, [the company’s] deceptive marketing and labeling scheme violates well-established federal and state consumer protection laws aimed at preventing this exact type of fraudulent scheme,” the suit states. 

    Garner Foods told MarketWatch in a statement over email that, “We are aware of the current lawsuit that has been filed against our company regarding the Texas Pete brand name.  We are currently investigating these assertions with our legal counsel to find the clearest and most effective way to respond.”

    It should be noted that both the Texas Pete and T.W. Garner Food Co. websites point out that the hot sauce is made in North Carolina. What’s more, the back label on the hot sauce bottle also reveals that it is made in the Tar Heel State. 

    But the suit argues that “consumers do not view the back label of the products when purchasing everyday food items such as hot sauce.” The plaintiffs are asking for unspecified damages, as well as for Texas Pete to change its label and advertising practices. 

    This brings to mind an Illinois woman’s $5 million suit against Kellogg last year, claiming the company is misleading consumers by selling “Frosted Strawberry Pop-Tarts” that barely contain any strawberries. 

    Or when Starbucks faced backlash several years ago as more consumers started realizing their beloved pumpkin spice lattes didn’t actually contain any pumpkin. The coffee chain has since tweaked the recipe to squeeze in autumn’s signature gourd.

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  • Tasmanian Pure Vodka® (TPV®) Earns Double Gold Medal at The Fifty Best Imported Vodka Tasting

    Tasmanian Pure Vodka® (TPV®) Earns Double Gold Medal at The Fifty Best Imported Vodka Tasting

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    Press Release


    Oct 10, 2022

    Tasmanian Pure Vodka® is pleased to announce that it was awarded a Double Gold medal for best imported vodka at this year’s The Fifty Best 2022 tasting. 

    Using professional criteria, the pre-qualified panel of judges blind-tasted hundreds of imported vodkas and rated them individually on a 1-5 point scoring system with 5 — or Gold — being the highest. After tallying the scores, medals were awarded based on the judges’ professional impressions of the products evaluated.

    “We are pleased to have received this honorable recognition by The Fifty Best,” said Joseph Orrico, principal and founder of Tasmanian Pure Vodka ®. “As a growing brand headquartered in the U.S. whose ingredients and distinction derives from the natural and untainted Tasmanian landscape, we strive to appeal to the taste and likings of vodka connoisseurs who share our passion for unrivaled taste and purity. We are thrilled and grateful to have achieved this award.”

    About Tasmanian Pure Vodka®

    Tasmanian Pure Vodka® (TPV®) is derived from 30 Million Years of Craft™. Its small-batch, premium recipe is produced from the purest water and air of Tasmania, Australia, and is rolling out across the United States. The premium vodka’s core ingredient, water, is supplied by Tasmanian Mountain Waters, the purest on the planet, which runs through a series of 300 limestone caves to the point of extraction. TPV™’s mission is to transform nature’s purest water into vodka in its most natural form.

    For more information, contact info@tpvodka.com.

    About The Fifty Best

    TheFiftyBest.com is a digital guide to wines & spirits, featuring rated listings resulting from proprietary blind tastings as judged by wine/spirits journalists, spirits professionals, wine/spirit retailers, mixologists, spirits consultants and connoisseurs. The Fifty Best achieves the highest standards of spirits evaluations by adhering to strict tasting rules and rigorous methodology.

    Source: Tasmanian Pure Vodka

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  • Midterm elections: Republicans regain edge over Democrats in generic ballot, scoring biggest advantage in 2 months in key indicator

    Midterm elections: Republicans regain edge over Democrats in generic ballot, scoring biggest advantage in 2 months in key indicator

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    The Republican Party has an edge again in the generic ballot, and that advantage has reached a level last seen in late July, according to a RealClearPolitics average for that closely watched indicator.

    That could be another sign that the GOP may be getting back some momentum as November’s midterm elections approach, after Democratic prospects improved during the summer.

    Republicans are now scoring 46.0% support in the RCP average of generic ballots, a percentage point ahead of Democrats at 45.0%.

    The GOP hit a 1-point edge last Wednesday, then saw a dip, but as of Tuesday was back at that level, as shown in the chart below.

    It’s not a big advantage, but it’s the best showing for Republicans in RCP’s data for generic ballots since July 28, as Democrats had the advantage for much of August and September.

    Related: If this seat flips red, Republicans will have ‘probably won a relatively comfortable House majority’

    Also read: ‘Republican control of the House is not a foregone conclusion,’ says political analyst


    RealClearPolitics

    The generic ballot refers to a poll question that asks voters which party they would support in a congressional election without naming individual candidates. Analysts tend to see it as a useful indicator.

    Other websites focused on political analysis and forecasting, such as FiveThirtyEight, still show Democrats with an edge in their data for generic ballots.

    Election Day for the midterm contests is now five weeks away. Democrats have focused their campaigns on abortion rights after the Supreme Court’s June decision that overturned Roe v. Wade, while Republicans have seized on Americans’ frustration with high inflation.

    The additional chart below is interactive and shows RCP’s data for the generic ballot over a longer time frame.

    Related: Biden to talk up Democrats’ support for abortion rights, with midterm elections now just 5 weeks away

    And see: New poll finds just 30% of Americans approve of how Biden is handling inflation

    Plus: Republicans’ chances for taking control of Senate rebound to 46%, a level last seen about 8 weeks ago

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  • U.S. stocks finish choppy session with losses, snap 2-day winning streak as investors assess positive economic data

    U.S. stocks finish choppy session with losses, snap 2-day winning streak as investors assess positive economic data

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    U.S. stock indexes ended modestly lower on Wednesday, despite briefly turning positive in the final hour of trading, while data showed steady growth in private-sector jobs and in the service sector, indicating more scope for the Federal Reserve to continue to raise interest rates.

    How stocks traded?
    • The Dow Jones Industrial Average
      DJIA,
      +0.03%

      lost 42.45 points, or 0.1%, to finish at 30,273.87

    • The S&P 500
      SPX,
      +0.21%

      was off 7.65 points, or 0.2%, ending at 3,783.28

    • The Nasdaq Composite
      COMP,
      +18.82%

      shed 27.77 points, or 0.2%, to end at 11,148.64

    On Tuesday, the Dow jumped 825 points, or 2.8%, while the S&P 500 increased 3.1% and the Nasdaq Composite rallied 3.3%.

    What drove markets?

    Wall Street stocks finished in the red after three main indexes bounced back from earlier losses in the final hour of trade, following a strong September private employment report in the morning.

    Data released Wednesday showed that private-sector payrolls rose by 208,000 in September, indicating steady growth and supporting the view that the Fed has enough scope to keep raising interest rates. Economists surveyed by The Wall Street Journal had expected a rise of 200,000.

    The report came two days before the closely watched nonfarm payrolls data issued by the Bureau of Labor Statistics. Investors are eying on it for important guidance on the Fed’s policy stance in the November meeting.

    Friday’s employment report is expected to show the economy added 275,000 jobs in September, compared with 315,000 new positions added in August, according to a survey polled by Dow Jones.

    See: Hiring and job creation seen falling to a 1 1/2-year low in U.S. September jobs report

    “That certainly could move the needle,” said Kristina Hooper, chief global market strategist at Invesco. “Again, it doesn’t mean that it actually is going to change the market, but it could be the catalyst for short term rally if we get a disappointing jobs report.”

    “But keep in mind, that’s just the anticipation of a Fed pivot based on data. But that does not ensure a Fed pivot. And so it could be one of those short-term rallies like the one we saw earlier this week,” Hooper said.

    In other data Wednesday, an ISM barometer of U.S. business conditions in the service sector dipped to 56.7% in September but still showed steady growth and rising employment in a sign the economy is still expanding.

    The U.S. trade deficit in August fell to $67.4 billion, the lowest level since mid 2021, paving the way for a resumption of growth in gross domestic product in the third quarter.

    See: Why investors shouldn’t expect a break from the stock-market whiplash, says this strategist

    The S&P 500 had just enjoyed its largest two day percentage gain since April 2020 on Monday and Tuesday, and the best start to a quarter since 1938, according to Dow Jones Market data.

    The bounce followed three quarters of declines, the worst such run since 2008, during which time the S&P 500 fell 24.8% to a near two-year trough as investors worried that the Federal Reserve’s interest rate hikes to crush inflation would harm the economy.

    Brian Mulberry, client portfolio manager at Zacks Investment Management, believes the volatility in the stocks will continue because markets are getting a very “consistent message” from the Fed.

    “Given what has happened over the last five trading sessions alone, we would be basically telling our clients to tighten your seatbelt a little bit because it’s definitely going to continue to be a bumpy ride,” Mulberry told MarketWatch in a phone interview on Wednesday. “If we get a ‘Goldilocks’ (jobs) report, that would mean decent economic activity is going on. That’s good for earnings overall in the market, but it’s not growing to a point where interest rates would have to be ratcheted up another 125 basis points by the end of the year.”

    See: The stock market is surging as the U.S. dollar retreats. It’s all about bonds.

    One major reason behind the rise early this week was the view that the Fed would pivot away from its aggressive monetary tightening.

    Johanna Chua, chief Asia economist at Citi, said that though U.S economic growth remained in better shape than other countries and Fed officials continued to sound hawkish, the market risked being wrongfooted by any signs that interest rates could soon peak.

    “Even as the overall fundamental setup has not changed… trimming of bearish risk/bearish rates/bullish USD positions has driven a sharp reversal,” Chua said.

    Mary Daly, president of the Federal Reserve Bank of San Francisco said Wednesday that the Federal Reserve needs to keep raising its benchmark interest rate in order to cool inflation that hit a 40-year high earlier this year and has shown little signs of cooling. Atlanta Fed President Raphael Bostic will speak at 4 p.m. Eastern.

    Meanwhile, the OPEC+ group said Wednesday that it will reduce its collective crude production levels by 2 million barrels a day starting next month, the biggest cut since the start of the pandemic. Oil futures headed higher with West Texas Intermediate crude for November delivery
    CL00,

     
    CLX22,

    rose $1.24, or 1.4%, to settle at $87.76 a barrel on the New York Mercantile Exchange.

    The S&P 500’s energy sector
    SP500.10,
    -0.07%

    rose 2.1% following the news, up 12.6% over the last three trading days. According to Dow Jones Market Data, it was the best three-day percentage gain since November 2020 when it gained 16.1%. Shares of Schlumberger 
    SLB,
    +0.77%

    gained 6.3% at the close, while Exxon Mobil
    XOM,
    +1.32%

    shares advanced 4%.

    Companies in focus
    • Shares of Helen of Troy Ltd. 
      HELE,
      -2.75%

      finished 3.4% higher Wednesday, after the consumer products company, with brands including OXO, Hydro Flask and Braun, reported fiscal second-quarter earnings that beat expectations but cut its full-year outlook, as rising inflation has prompted consumers to change their spending patterns.

    • Shares of Monopar Therapeutics Inc.
      MNPR,
      +6.36%

       gained 1.8% after the company said it completed enrollment in a Phase 2b clinical trial evaluating its experimental therapy aimed at preventing severe oral mucositis in patients undergoing chemoradiotherapy for oropharyngeal cancer.

    • Shares of Eiger BioPharmaceuticals Inc.
      EIGR,
      +0.85%

       tumbled 5% after the company said it will not pursue emergency authorization of its experimental treatment for mild and moderate COVID-19 infections.

    • Shares of Lamb Weston Holdings Inc.
      LW,
      +2.45%

       ended 4.2% higher Wednesday, after the potato supplier reported fiscal first-quarter profit that beat expectations, higher prices helped offset a volume decline.

    —Jamie Chisholm contributed reporting

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  • Brad Pitt’s rep calls Angelina Jolie’s latest allegations about 2016 airplane incident ‘completely untrue’ | CNN

    Brad Pitt’s rep calls Angelina Jolie’s latest allegations about 2016 airplane incident ‘completely untrue’ | CNN

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    CNN
     — 

    A countersuit filed Tuesday by actress Angelina Jolie against her ex-husband Brad Pitt includes more information about an alleged physical altercation between the former couple that took place on a plane in 2016.

    In a statement to CNN, a representative for Pitt called the latest allegations “completely untrue.”

    Jolie and Pitt are battling over Jolie’s sale of her stake in their joint French winery, Chateau Miraval. Jolie sold her half of the winery in 2021 to Tenute del Mondo, a subsidiary of Stoli Group, controlled by Russian oligarch Yuri Shefler.

    Pitt sued Jolie in February, claiming that he and Jolie had an agreement that neither would sell without the other’s consent.

    Jolie claims in her countersuit that there was never any such agreement and that she sold her portion of the winery in an effort to have “financial independence” from Pitt and to “have some form of peace and closure to this deeply painful and traumatic chapter of her and their children’s lives.”

    In the court documents, obtained by CNN, Jolie also shares more details about an alleged incident on a private plane on September 14, 2016, five days before she filed for divorce.

    In a section of Jolie’s counterclaim titled “Why Jolie separated from Pitt,” the document alleges that, before arriving to the airport, Pitt got into an argument with one of their six children, who at the time were between the ages of 8 and 15. The filing goes on to allege that on the plane Jolie asked Pitt “what was wrong?” and that Pitt went on to verbally attack her and then an hour and a half later “pulled” her into the bathroom, “grabbed Jolie by the head and shook her, and then grabbed her shoulders and shook her again before pushing her into the bathroom wall.”

    The claim also alleges, “Pitt choked one of the children and struck another in the face. Some of the children pleaded with Pitt to stop. They were all frightened. Many were crying.”

    In a statement provided to CNN on Tuesday, a representative for Pitt said: “(Jolie’s) story continues to evolve each time she tells it with new, unsubstantiated claims. Brad has accepted responsibility for what he did but will not for things he didn’t do. These new allegations are completely untrue.”

    CNN previously reported some of these details from a heavily redacted FBI report in August.

    Pitt was not arrested or charged in connection with the incident after the FBI completed an investigation in 2016.

    “In response to allegations made following a flight within the special aircraft jurisdiction of the United States which landed in Los Angeles carrying Mr. Brad Pitt and his children, the FBI has conducted a review of the circumstances and will not pursue further investigation. No charges have been filed in this matter,” FBI spokeswoman Laura Eimiller said in a statement to CNN at the time.

    “All parties have had this information for nearly six years and was used in previous legal proceedings. There is nothing new here and serves no purpose other than being a media stunt meant to inflict pain,” a source close to Pitt said of the August report.

    CNN has reached out to representatives for Jolie regarding the most recent court filing, which states that during the plane incident, Pitt allegedly “lunged at his own child and Jolie grabbed him from behind to stop him. To get Jolie off his back, Pitt threw himself backwards into the airplane’s seats injuring Jolie’s back and elbow.”

    The court documents also claim that the children “rushed in and all bravely tried to protect each other” and that Jolie and the children “sat still and silent under blankets. Nobody dared to go to the bathroom.”

    For this reason, the legal documents state, Jolie and her six children have not been able to return to Chateau Miraval due to the “pain Pitt inflicted on the family that day.”

    Many of the details in Jolie’s countersuit echo those made in a countersuit filed last month by Nouvel LLC, Jolie’s former company.

    In his earlier claim, Pitt had alleged that Jolie “did nothing to drive (the) growth” of the business, which he turned into a “multimillion dollar international success story.”

    In its countersuit, Nouvel disputed this, saying “Pitt refused to grant Jolie or Nouvel equal access to Chateau Miraval’s records or an equal voice over management,” effectively “holding the most significant part of her net worth hostage.”

    Jolie’s countersuit adds that “like other couples,” the two “divided their responsibilities and generally split costs.”

    “Jolie made her career as an actor and director secondary to her primary responsibility of raising the children. She also oversaw the day-to-day running of the Jolie-Pitt Foundation, to which she not only contributed substantial amounts of time but also substantial amounts of cash (over twice what Pitt contributed),” the document states. “Pitt continued with his Hollywood career and took primary responsibility for renovating the chateau.”

    She also claims that she repeatedly tried to sell her stake in the winery to Pitt, as recently as last year and that Pitt was going to buy her portion for $54.5 million in February but that Pitt “demanded” she sign a broad non-disparagement clause “that would prohibit Jolie from discussing outside of court any of Pitt’s personal conduct toward her or the family,” inherently including the allegations of abuse from the 2016 incident.

    Jolie claims that she refused to sign this clause and called it “an abusive and controlling deal-breaker.”

    The counterclaim asks the court to declare Jolie’s sale of her stake final so that the actress can “move on from the winery and chateau.”

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  • 21 dividend stocks yielding 5% or more of companies that will produce plenty of cash in 2023

    21 dividend stocks yielding 5% or more of companies that will produce plenty of cash in 2023

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    When the stock market has jumped two days in a row, as it has now, it is easy to become complacent.

    But the Federal Reserve isn’t finished raising interest rates, and recession talk abounds. Stock investors aren’t out of the woods yet. That can make dividend stocks attractive if the yields are high and the companies produce more cash flow than they need to cover the payouts.

    Below is a list of 21 stocks drawn from the S&P Composite 1500 Index
    SP1500,
    +3.12%

    that appear to fit the bill. The S&P Composite 1500 is made up of the S&P 500
    SPX,
    +3.06%
    ,
    the S&P 400 Mid Cap Index
    MID,
    +3.18%

    and the S&P Small Cap 600 Index
    SML,
    +3.80%
    .

    The purpose of the list is to provide a starting point for further research. These stocks may be appropriate for you if you are looking for income, but you should do your own assessment to form your own opinion about a company’s ability to remain competitive over the next decade.

    Cash flow is key

    One way to measure a company’s ability to pay dividends is to look at its free cash flow yield. Free cash flow is remaining cash flow after planned capital expenditures. This money can be used to pay for dividends, buy back shares (which can raise earnings and cash flow per share), or fund acquisitions, organic expansion or for other corporate purposes.

    If we divide a company’s estimated annual free cash flow per share by its current share price, we have its estimated free cash flow yield. If we compare the free cash flow yield to the current dividend yield, we may see “headroom” for cash to be deployed in ways that can benefit shareholders.

    For this screen, we began with the S&P Composite 1500, then narrowed the list as follows:

    • Dividend yield of at least 5.00%.

    • Consensus free cash flow estimate available for calendar 2023, among at least five analysts polled by FactSet. We used calendar-year estimates, even though fiscal years for many companies don’t match the calendar.

    • Estimated 2023 free cash flow yield of at least double the current dividend yield.

    For real-estate investment trusts, dividend-paying ability is measured by funds from operations (FFO), a non-GAAP figure that adds depreciation and amortization back to earnings. Adjusted funds from operations (AFFO) takes this a step further, subtracting cash expected to be used to maintain properties. So for the two REITs on the list, the FCF yield column makes use of AFFO.

    For many companies in the financial sector, especially banks and insurers, free cash flow figures aren’t available, so the screen made use of earnings-per-share estimates. These are generally considered to run close to actual cash flow for these heavily regulated industries.

    Here are the 21 companies that passed the screen, with dividend yields of at least 5% and estimated 2023 FCF yields at least twice the current payout. They are sorted by dividend yield:

    Company

    Ticker

    Type

    Dividend yield

    Estimated 2023 FCF yield

    Estimated “headroom”

    Uniti Group Inc.

    UNIT,
    +7.36%
    Real-Estate Investment Trusts

    8.33%

    25.25%

    16.92%

    Hanesbrands Inc.

    HBI,
    +5.56%
    Apparel/ Footwear

    8.33%

    17.29%

    8.96%

    Kohl’s Corp.

    KSS,
    +5.80%
    Department Stores

    7.68%

    16.72%

    9.04%

    Rent-A-Center Inc.

    RCII,
    +10.40%
    Finance/ Rental/ Leasing

    7.52%

    17.26%

    9.73%

    Macerich Co.

    MAC,
    +8.18%
    Real-Estate Investment Trusts

    7.43%

    18.04%

    10.60%

    Devon Energy Corp.

    DVN,
    +5.72%
    Oil & Gas Production

    7.13%

    14.47%

    7.33%

    AT&T Inc.

    T,
    +1.19%
    Major Telecommunications

    6.98%

    14.82%

    7.84%

    Newell Brands Inc.

    NWL,
    +5.16%
    Industrial Conglomerates

    6.59%

    17.42%

    10.82%

    Dow Inc.

    DOW,
    +2.96%
    Chemicals

    6.18%

    15.63%

    9.45%

    LyondellBasell Industries NV

    LYB,
    +3.64%
    Chemicals

    6.09%

    16.07%

    9.99%

    Scotts Miracle-Gro Co. Class A

    SMG,
    +5.01%
    Chemicals

    6.04%

    12.68%

    6.65%

    Diamondback Energy Inc.

    FANG,
    +5.23%
    Oil & Gas Production

    5.56%

    13.63%

    8.08%

    Best Buy Co. Inc.

    BBY,
    +5.86%
    Electronics/ Appliance Stores

    5.53%

    14.08%

    8.55%

    Viatris Inc.

    VTRS,
    +5.62%
    Pharmaceuticals

    5.50%

    28.95%

    23.45%

    Prudential Financial Inc.

    PRU,
    +5.66%
    Life/ Health Insurance

    5.38%

    13.30%

    7.91%

    Ford Motor Co.

    F,
    +7.76%
    Motor Vehicles

    5.23%

    15.95%

    10.72%

    Invesco Ltd.

    IVZ,
    +6.76%
    Investment Managers

    5.23%

    14.95%

    9.73%

    Franklin Resources Inc.

    BEN,
    +4.37%
    Investment Managers

    5.17%

    13.21%

    8.04%

    Kontoor Brands Inc.

    KTB,
    +0.73%
    Apparel/ Footwear

    5.17%

    14.15%

    8.98%

    Seagate Technology Holdings PLC

    STX,
    +4.09%
    Computer Peripherals

    5.11%

    13.19%

    8.07%

    Foot Locker Inc.

    FL,
    +1.35%
    Apparel/ Footwear Retail

    5.03%

    15.52%

    10.49%

    Source: FactSet

    Any stock screen has its limitations. If you are interested in stocks listed here, it is best to do your own research, and it is easy to get started by clicking the tickers in the table for more information about each company. Click here for Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.

    For the “estimated FCF yields,” consensus free cash flow estimates for calendar 2023 were used for all companies except the following:

    Don’t miss: Dividend yields on preferred stocks have soared. This is how to pick the best ones for your portfolio.

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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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  • Nike stock drops 10% as execs predict cheaper clothing for at least the rest of the year

    Nike stock drops 10% as execs predict cheaper clothing for at least the rest of the year

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    Shares of Nike Inc. plunged as much as 10% after hours Thursday, after the athletic-gear giant’s executives said price-cutting efforts to flush off-season clothing from warehouses in North America would dent gross margins for the rest of its fiscal year and warned of a big potential hit from the stronger dollar.

    Management also said they expected their rivals to keep cutting prices through at least the end of the calendar year, as they try to clear their own stockpiles. But the Nike executives said inventory levels in North America likely “peaked” in its first quarter, which ended on Aug. 31, and expected levels to even out — with newer, seasonally-aligned, in-demand product — in the months ahead as it prepares for the holiday rush.

    “We’re taking decisive action to clear excess inventory, focusing on specific pockets of seasonally late product, predominantly in apparel,” Chief Financial Officer Matthew Friend said on Nike’s earnings call.

    He added that he expected the moves to have a “transitory impact” on gross margins for the year.

    The lopsided inventory levels, which grew 44% during Nike’s third quarter, followed factory closures last year in Asia, where most of its footwear is made, that led to late product deliveries, Friend said.

    But those late deliveries are now getting mixed in with holiday-season deliveries that are set to arrive earlier than planned. The earlier arrivals, executives said, were a function of earlier ordering — due to the shipping delays that have characterized the past year —and then a sudden, more recent improvement in those shipping times.

    And as the U.S. dollar strengthens, Friend said he expected the full-year negative impact of foreign exchange on reported sales and earnings before interest and taxes to be $4 billion and $900 million, respectively.

    Still, executives said inventory management in China was “ahead of plan” as it recalibrates supply and navigates COVID-19 related restrictions there. And they said that consumer demand was still strong, despite rising prices. Friend and CEO John Donahoe both repeated that Nike remained customers’ “No. 1 cool” and “No. 1 favorite” brand.

    Donahoe said shoes like the Air Max Scorpion — which offered the “most air ever, in terms of pound per square inch” — reflected Nike’s commitment to innovation. The company’s Travis Scott and LeBron 20 sneakers also remained popular, executives said. The back-to-school season, and demand for its Jordan and Converse sneakers, were also solid.

    As for fiscal first-quarter financials, Nike reported net income of $1.5 billion, or 93 cents a share, compared with $1.9 billion, or $1.16 a share, in the year-earlier period. Sales came in at $12.7 billion, compared with $12.2 billion a year ago.

    Analysts polled by FactSet expected earnings of 92 cents a share on sales of $12.28 billion. Shares of Nike
    NKE,
    -3.41%

    were last down 9.3% after hours, but fell more than 10% at one point after the close.

    Prior to the report, analysts following Nike had zeroed in on the impact of the stronger U.S. dollar, the impact of China’s COVID lockdowns, as well as the effects from bigger discounts to sell shoes and other gear that sat around for too long due to backups in the company’s supply chain. The back-to-school season, and competition with the likes of Adidas AG
    ADDYY,
    -5.21%

    were also points of focus for Wall Street.

    Gross margins fell to 44.3% from 46.5% during the quarter. Nike executives said the decrease “was primarily driven by North America, which took measures to liquidate excess inventory through Nike Direct markdowns and wholesale marketplace actions.”

    Inventory for Nike stood at $9.7 billion, a 44% increase from the year-earlier period, due to what executives described as “ongoing supply-chain volatility, partially offset by strong consumer demand during the quarter.”

    Nike, in June, said it expected “higher promotional activity” in the first quarter, as it tries to sell seasonal items that arrived late, following the factory closures last year in Asia. However, for the full year ahead, management at that time said it was planning for “mid-single-digit price increases.”

    Executives also said then that they were planning to expand sales that go directly to consumers, via its own stores and online. The company over the years has been trying to rely less on retail chains like Foot Locker Inc.
    FL,
    -6.36%

    for sales.

    Shares of Nike have fallen 43% so far this year. By comparison, the S&P 500 index
    SPX,
    -2.11%

    is down around 24% over that time.

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