[ad_1]
The goal of many (or most) savers and long-term investors is to achieve financial independence. The combination of building up a nest egg, paying down debt and eventually receiving Social Security payments or another source of retirement income might put you in a comfortable position, but even people who have worked together to achieve financial independence may disagree on what to do after their careers end.
Quentin Fottrell — the Moneyist — heard from one couple who are facing a quandary. They have been financially responsible, but as they near retirement, the wife wishes to be very careful with their combined investment portfolio, while the husband wants to begin spending a significant portion of it. They both make reasonable arguments. Here’s what they should do.
From the Help Me Retire column: My 57-year-old husband works three shifts and is burned out. Can he retire?
Getty Images
Doing this even once might help encourage you or someone you know to begin saving and investing for the long term.
Getty Images
Even an index that includes hundreds of stocks can be heavily concentrated. Large technology-oriented companies have led this year’s 16% rebound for the S&P 500
SPX,
following last year’s 18% decline (both with dividends reinvested). But the index is weighted by market capitalization, which means the “Magnificent Seven” — Apple Inc.
AAPL,
Microsoft Corp.
MSFT,
two common share classes of Alphabet Inc.
GOOGL,
GOOG,
Amazon.com Inc.
AMZN,
Nvidia Corp.
NVDA,
Tesla Inc.
TSLA,
and Meta Platforms Inc.
META,
— make up 27.9% of the SPDR S&P 500 ETF Trust
SPY,
In the Need to Know column, Barbara Kollmeyer lists companies that might turn out to be among the next Magnificent Seven, based on a Goldman Sachs screen.
Getting back to the current Magnificent Seven, you may be surprised to see which of the stocks is cheapest — by far — per one commonly used valuation metric.
Rivian
There has been a lot of news in the electric-vehicle space this week. Here are lists of coverage organized by topic.
Rising unit sales among EV makers:
Legacy automakers report sales increases, including a tremendous increase in EV unit sales for Ford
F,
:
Reaction from analysts and investors:
In other news, Mullen Automotive Inc.
MULN,
has started to deliver electric vehicles. Further developments for the company this week included the announcement of a stock-buyback plan and possible action against naked short sellers.
The employment numbers for June from the U.S. Bureau of Labor Statistics showed the lowest level of job creation since late 2020. Then again, the demand for labor in the U.S. remains high, despite the Federal Reserve’s efforts to slow economic growth.
If you are looking to make a career change, what does all this mean to you? Andrew Keshner points to a development in the employment market that may have you thinking twice about jumping ship.
AFP via Getty Images
Meta rolled out its new Threads service on Wednesday to compete directly with Twitter and has already signed up 50 million users, according to some reports.
Twitter CEO Linda Yaccarino was quick to respond.
More reaction:
U.S. shoppers have been taking it slow during a period of high inflation, but the overall economy has been stronger than expected even as the Federal Reserve continues tightening its monetary policy.
The coming flurry of July sales events at Amazon, Walmart Inc.
WMT,
and Target Corp.
TGT,
could signal a turnaround for consumers, as James Rogers reports.
Lukas I. Alpert writes the Financial Crime column. Have you ever wondered how you might steal a lot of cash from a company that is likely to have rather tight accounting controls in place? This week Alpert explains how the manager of an Amazon warehouse managed to scale the heights of criminal achievement to collect $10 million — and a 16-year jail sentence.
Also read: Silver dealer ordered to pay $146 million in case of 500,000 missing coins
Want more from MarketWatch? Sign up for this and other newsletters to get the latest news and advice on personal finance and investing.
[ad_2]
[ad_1]
Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.
Whether trying to prevent e-waste or simply attempting to save a few hundred bucks, a refurbished computer is a great option when it comes time to get a work computer. And if you’ve purchased one recently, you’re in good company, as Statista estimated that refurbished electronics are the consumer goods category that generated the highest revenue in 2022.
The only drawback to these more affordable computers? They often don’t come with the latest operating system. This Microsoft Windows 11 Pro deal provides a license for your computer for only $29.97 (reg. $199), but you’ll have to act fast. This deal is only good during our version of Prime Day, and while there’s no coupon code required, you need to act before it’s over on July 14.
Let Microsoft Windows 11 Pro elevate your PC to another level. Even though your refurbished device feels new to you, this upgrade will keep it current. It’s particularly great if you’re using this PC for work purposes, thanks to Windows Hello for Business, which offers management tools for remote deployment, multi-factor authentication, and support for certificate-based authentication. All of these combine to make remote working a little more convenient.
Aside from making work smoother, you’ll also gain peace of mind with improved security features. Enhanced security perks include the Microsoft Information Protection integration feature that ensures your data is safe from leaks and the BitLocker Encryption. This tool encrypts your data on your hard drive so it can be read elsewhere.
Elevate your older PC with Microsoft Windows 11 Pro, available during our version of Prime Day for just $29.97 (reg. $199), no coupon code required, now through July 14 at 11:59 p.m. PT.
Prices subject to change.
[ad_2]
Entrepreneur Store
Source link
[ad_1]
Technology stocks reigned supreme in the first half of the year, far outperforming the wider market. But sustaining that rally will be tough, and investors need to look now for tech stocks that are ready to benefit from the growth of artificial intelligence.
[ad_2]
[ad_1]
Meta Platforms Inc. launched Threads, its rival to Twitter, a day early Wednesday.
“Let’s do this. Welcome to Threads,” Meta Chief Executive Mark Zuckerberg posted on the new app.
The text-based app, a spinoff of Meta’s META Instagram, had been set to launch Thursday morning, but instead went live for users in the U.S. and more than 100 other…
[ad_2]
[ad_1]
Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.
A recent report documented an alarming trend of overspending among US businesses. As much as half of all enterprises waste up to 10% of their budget on software, SaaS, and cloud infrastructure.
Some of that overspending may be due to a recent rise in subscription-based software rather than one-time purchases of lifetime licenses. If you want to find a way to reduce your software costs, consider investing in a bundle that includes lifetime subscriptions for Microsoft Office 2021 Pro for Windows, Windows 11 Pro, and a 1TB Lifetime Degoo Backup Plan. Deal Days is Entrepreneur‘s version of Prime Day, and it’s your chance to get this exclusive lifetime software bundle for an unbeatable $79.97.
This three-part deal could help your business save in the long run. For daily operations, you’ll get access to Microsoft Word, Excel, PowerPoint, Outlook, Teams (free version), OneNote, Publisher, and Access installed on one computer for life. Unlike Microsoft 365, there are no associated subscription costs, and the apps still connect directly with the user’s Microsoft account for regular updates.
The Windows 11 key can be used to upgrade three compatible computers. If you are concerned about cybersecurity, take advantage of an updated security interface that includes tools like wake and lock, BitLocker device encryption, and biometrics login.
Degoo Premium is a 1TB cloud backup service that connects to an unlimited number of devices. Use this shared space to guard your essential files so that losing a hard drive doesn’t compromise your business’s future.
Cut your spending on software subscriptions and invest in lifetime licenses for the same or similar tools.
Until July 14 at 11:59 p.m. PT, get lifetime subscriptions for Microsoft Office 2021 Pro for Windows, Windows 11 Pro, and a 1TB Lifetime Degoo Backup Plan for $79.97 (reg. $537).
Prices subject to change.
[ad_2]
Entrepreneur Store
Source link
[ad_1]
The fate of
Microsoft
$69 billion purchase of
Activision
Blizzard will finally be known in the coming weeks—and investors may want to consider taking profits on the videogame maker’s stock before then.
[ad_2]
[ad_1]
Apple Inc. closed out the June quarter with a bang, clinching a $3 trillion valuation for the first time.
Shares of Apple
AAPL,
advanced 2.3% in Friday trading, given them a market capitalization above $3 trillion. The company previously hadn’t ended a trading session at the milestone mark, though it got close Jan. 3, 2022, when it traded intraday at levels that would have amounted to that valuation level but failed to close there.
The smartphone giant became the first U.S. company to secure a $3 trillion valuation. Its market capitalization alone is larger than the market caps of the S&P 500 Utilities, Real Estate and Materials sectors combined, according to Dow Jones Market Data.
Apple’s close in $3 trillion territory comes 719 trading days after it crossed the $2 trillion threshold, also according to Dow Jones Market Data.
Read: Apple’s march toward a $3 trillion valuation, shown in one chart
Citi Research weighed in late Thursday with a vote of confidence in the stock’s ability to run ever higher from here, with analyst Atif Malik initiating coverage of the shares with a buy rating and $240 target price.
See more: Buy Apple’s stock because it’s more than just a hardware play, Citi says
“We believe the Street is underestimating continued gross margin expansion,” Malik wrote in his note to clients, while adding that he anticipates the “trend of premium iPhones grabbing more share to continue.”
His bullish note came as Apple shares surged 46% so far in 2023 amid a strong first half of the year for Big Tech players.
More from MarketWatch: The Nasdaq-100 is headed for its best first half on record. But the rally faces a high-stakes test in July.
Wedbush analyst Daniel Ives chimed in that Apple shares could come to fetch a higher multiple as the company nears $100 billion in annual services revenue for fiscal 2024, compared with about $50 billion in fiscal 2020.
“Herein lies the key to the valuation re-rating that we believe will continue to take place around Apple’s stock as the Street further appreciates the sheer massive potential of this services revenue that we now assign a valuation in the $1.4 trillion range,” he wrote.
Ives said he thinks a fair valuation for Apple would be about $3.5 trillion by fiscal 2025, though his bull case contemplates the potential for a $4 trillion valuation by that point.
Don’t miss: These are the best-performing stocks in the 2023 bull market — and the worst
[ad_2]
[ad_1]
Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.
We’re living in the golden age of apps. According to TechJury, in 2020 the average American had 40 different apps downloaded onto their phone, and there seem to be new ones popping up everyday. But with all the buzz around the latest and greatest apps, there’s something to be said for the ones that have been around….well, since back in the days of dial-up and old-school ’90s computer towers.
Microsoft Office apps are classics for a reason, providing convenient ways to tackle nearly everything in both your work and personal life that have stood the test of time as technology continues to advance. And unlike a lot of apps, you can currently score a lifetime license to all of them for either a Mac or Windows computer for a low one-time price during Deal Days, our version of Prime Day. This lifetime license can be yours for only $29.97, with no coupon code required, now through July 14.
Whether you’re a Mac or a PC lover, you can take advantage of this amazing steal on a fleet of the beloved Microsoft Office apps. For those operating on an Apple computer, the Microsoft Office Home and Business for Mac 2021 offers all of the go-to apps — from Microsoft Word for drafting documents to Microsoft Excel for putting together spreadsheets. There’s also Microsoft PowerPoint, Outlook, Teams, and OneNote included, all in a lifetime license that can be used on one computer forever. All Mac lovers need to do is make sure they’ve updated their OS to Version 11 Big Sur to get started.
Windows users can take advantage of the deal on Microsoft Office Professional 2021 for Windows, packed with Microsoft Word, Excel, PowerPoint, Outlook, Teams, OneNote — plus two other apps: Publisher and Access. This is also for a lifetime license installed on one computer, and works with Windows computers that have been updated to Windows 10 or 11.
During Deal Days, get these deals with no coupon code needed through July 14:
Prices subject to change.
[ad_2]
Entrepreneur Store
Source link
[ad_1]
Micron Technology Inc. could be approaching a big new semiconductor cycle as it predicts a huge boost from artificial intelligence, but there could be a roadblock in the path.
Micron
MU,
reported a third-quarter loss and a 57% drop in revenue Wednesday, after the chip industry’s oversupply hit the memory-chip maker hard. On the bright side, Micron Chief Executive Sanjay Mehrotra said he believed the memory industry “had passed its trough” and that the company’s margins should improve as the supply-demand balance is gradually restored.
Another big issue for the stock right now, though, is China’s decision to recommend that “operators of critical information infrastructure in China should stop purchasing Micron products.” Mehrotra told analysts on the company’s conference call that the decision will impact about 50% of its products sold in China.
“We currently estimate that approximately half of that China-headquartered customer revenue, which equates to a low double-digit percentage of Micron’s worldwide revenue, is at risk of being impacted,” Mehrotra said on the call. “This significant headwind is impacting our outlook and slowing our recovery.”
More from Therese: AI has given a big boost to stock of this lesser-known Silicon Valley computer maker
He said Micron will work with its long-term customers who are not impacted by China’s decision, and hopefully will increase its share with those customers.
On the plus side, Micron expects to see a substantial boost to its memory business as a result of companies gearing up to run generative AI on their own servers or clouds. “Generative AI [is] becoming a big opportunity and we look at it for 2024 as a big year for AI and for memory and storage, and Micron will be well-positioned,” in the data center with its products, Mehrotra said. He added that it is “very, very early innings for AI,” which is really pervasive. “It’s everywhere.”
Full earnings coverage: Micron CEO calls bottom in memory-chip market, but weak PC, smartphone forecasts cut into expected AI gains
He said it will be in both cloud and enterprise server applications, and due to confidentiality of data, enterprises will be building their own large language models, adding that the DRAM (dynamic random access memory) content required for AI in servers is driving higher demand for memory and storage in servers. In super cluster configurations, for example, the DRAM content can be as much as 100 times higher.
Investors appeared to maintain some caution about when the AI impact will kick in, even as some analysts have forecast that AI demand will lead to a general supercycle for many hardware companies. Micron’s shares see-sawed in after-hours trading Wednesday, ending the extended session up about 3%.
See also: Will generative AI complete the cloud transition? One prominent executive thinks so.
In a note ahead of the company’s earnings, Raymond James analyst Srini Pajjuri said that the impact from China “should be short-lived given the commodity nature of Micron’s products.”
Right now, it’s too early to say how long China may be a drag for Micron, but if Mehrotra is right, investors should take heart that the company is going to be another beneficiary of the coming AI boom.
[ad_2]
[ad_1]
Micron Technology Inc. shares rose in the extended session Wednesday after the memory-chip maker’s chief executive called the bottom on the sector, and quarterly results came in better than expected.
Micron
MU,
shares had jumped more than 5% after hours following the release of results, but by the end of the company’s conference call with analysts, the stock was up less than 2%. Shares finished Wednesday’s session with a 0.4% gain to close at $67.07, while the S&P 500 index
SPX,
declined less than 0.1%.
The Boise, Idaho-based company forecast an adjusted loss of $1.26 to $1.12 a share on revenue of $3.7 billion to $4.1 billion for the fourth quarter, while analysts surveyed by FactSet had estimated a loss of $1.07 a share on revenue of $3.88 billion for the fourth quarter, and a loss of $4.65 a share on revenue of $15.32 billion for the year.
Read: Snowflake stock rallies as ‘blizzard’ of AI product announcements make Wall Street happy
In the near term, Micron Chief Executive Sanjay Mehrotra told analysts on the call that while sales forecasts received a considerable boost from larger-than-expected AI sales, forecasts for PC, smartphone and standard server sales are looking worse than feared, and will eat into those gains. All told, however, the CEO told analysts that supply reductions are beginning to stabilize the market.
Micron Chief Financial Officer Mark Murphy said the company took about $400 million in inventory write-downs in the third quarter, contributing to negative gross margins of 16%, an improvement of 15 percentage points sequentially. When Micron reported its worst loss ever a quarter ago, the company had taken a $1.4 billion inventory charge. When Micron started flashing signs of negative margins earlier in the year, many analysts saw that as signs of a bottom on the horizon.
Read: Is Micron selling memory chips for less than they cost to make? That may mean the bottom is near.
Micron makes two types of memory chips: DRAM, or dynamic random access memory, the type of memory commonly used in PCs and servers; and NAND, the flash memory chips used in smaller devices like smartphones and USB drives. After prices for memory soared early in the COVID-19 pandemic, companies overbought large stores of chips to avoid shortages, creating a glut.
“As we have said before, AI servers have six to eight times the DRAM content of a regular server and three times the NAND content,” Mehrotra told analysts on the call. “In fact, some customers are deploying AI compute capability with substantially higher memory content.”
For the third quarter, Micron reported third-quarter loss of $1.9 billion, or $1.73 a share, versus net income of $2.63 billion, or $2.34 a share, in the year-ago period.
The adjusted loss, which excluded stock-based compensation expenses and other items, was $1.43 a share, versus net income of $2.59 a share in the year-ago period.
Revenue dropped to $3.75 billion from $8.64 billion in the year-ago quarter, as a two-year shortage of chips, triggered by the COVID pandemic, flipped quickly, but unevenly, into a glut around this time last year. Analysts surveyed by FactSet had forecast a loss of $1.61 a share on revenue of $3.65 billion.
“We believe that the memory industry has passed its trough in revenue, and we expect margins to improve as industry supply-demand balance is gradually restored,” Mehrotra had said in an earlier statement.
The CEO also called a recent order by the Chinese government to stop using Micron chips because of alleged serious, but unspecified, risks “a significant headwind that is impacting our outlook and slowing our recovery.”
On the call with analysts, Mehrotra said he expects to see a “record total addressable market in calendar 2025 along with a return to more normalized levels of profitability.”
Leading up to earnings, analysts had said that Micron is “at the bottom of this deep downturn,” but “China complicates the recovery plan.” For the year, Micron shares are up 34%, compared with the S&P 500’s 14% gain.
[ad_2]
[ad_1]
Shares of Nvidia Corp. and Advanced Micro Devices Inc. slumped in the extended session Tuesday following a report that the Biden administration is considering a new ban on sales of AI chips to China.
Nvidia shares
NVDA,
A fell 3% after hours, following a 3.1% gain to close at $418.76, while AMD shares
AMD,
also fell 3%, after a 2.7% gain in the regular session to close at $110.39.
Late Tuesday, the Wall Street Journal reported the Commerce Department could further block sales of AI chips to China unless U.S. companies first obtain a special license.
The ban would follow upon similar actions last year that threatened $400 million in Nvidia sales, but the company found a workaround in supplying a version of products that avoided the ban.
Read: AMD launches new data-center AI chips, software to go up against Nvidia and Intel
Both Nvidia and AMD have launched new AI chips this year: Nvidia in March and AMD earlier in the month. Last year’s release of Open AI’s ChatGPT generative AI — with billions of dollars invested by Microsoft Corp.
MSFT,
— resulted in an explosion of interest in artificial-intelligence technology, prompting luminaries to herald the technology as the biggest thing in tech since … you name it.
Read: Bill Gates says AI is only the second revolutionary tech advancement in his lifetime
News of the possible ban happened to follow a claim earlier in the day from Baidu Inc.
BIDU,
on the Chinese search company’s blog, which said its Ernie 3.5 version AI outperformed ChatGPT’s earlier version “in comprehensive ability scores,” and its latest iteration, GPT-4, which was released in mid-March, “in several Chinese-language capabilities.”
Baidu’s claim appeared to be based upon performance metrics published in China Science Daily. On Wall Street, ADRs of Baidu were down 0.7% after hours, following a 3.1% gain to close at $143.90.
As of Tuesday’s close, Nvidia shares were up 187% in 2023, and AMD shares were up 70% for the year.
Read: Snowflake adds partnerships with Nvidia and Microsoft for AI double play
Shares of Super Micro Computer Inc.
SMCI,
which have benefited from AI, also declined 3% after hours, while shares of Intel Corp.
INTC,
which supplies chips to data centers, saw shares decline 1% after hours.
[ad_2]
[ad_1]
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.
https://www.barrons.com/articles/nvidia-stock-price-ai-tesla-5af5041c
Shares of newly minted $1 trillion company
Nvidia
were taking it on the chin Monday, and investors searching for a reason should look to
Tesla
[ad_2]
[ad_1]
The heads of prominent U.S. and Indian companies will meet at the White House on Friday with President Joe Biden and Indian Prime Minister Narendra Modi to discuss investment in areas including artificial intelligence.
Those attending include Sam Altman, CEO of OpenAI, as well as Apple
AAPL,
CEO Tim Cook and Google
GOOG,
GOOGL,
CEO Sundar Pichai. Indian company executives include Mukesh Ambani, chair of Reliance Industries, and Anand Mahindra, chair of Mahindra Group.
“The president and Prime Minister Modi of the Republic of India will meet with senior officials and CEOs of American and Indian companies gathered to discuss innovation, investment, and manufacturing in a variety of technology sectors, including AI, semiconductors, and space,” the White House said.
Friday’s meeting is part of Modi’s high-profile visit to Washington, which included a state dinner at the White House and the announcement of a number of business deals.
Now read: Jet engine, drone deals unveiled as Biden meets India’s Modi
[ad_2]
[ad_1]
U.S. stocks fell Friday with the S&P 500 index on track for its worst week since the collapse of Silicon Valley Bank in March suggesting the three month rally may be coming to an end.
Investors sought safety in bonds and the U.S. dollar as a wave of interest-rate hikes and hawkish commentary from international central bankers revived worries about global economic growth.
On Thursday, the Dow industrials fell 4.81 points, or less than 0.1%, to close at 33,946.71. The four-day slide is the blue-chip gauge’s longest losing streak since a five-day drop that ended on May 25, according to Dow Jones Market Data. Both the S&P 500 and Nasdaq finished higher, snapping a three-day losing streak.
U.S. stocks on Friday looked set to snap the longest streak of weekly gains since 2019 for the Nasdaq.
Concerns that interest rate rises by central banks might harm global economic growth were weighing on global equities on Friday, analysts said, following interest rate rises in the U.K., Switzerland, Norway and Turkey on Thursday. The latest batch of rate hikes followed moves by the central banks of Canada and Australia earlier this month.
Data released on Friday also showed business activity in the eurozone losing momentum in June, according to a purchasing managers survey. U.S. economic growth may also be slowing. The S&P Global U.S. services index fell to a 54.1 in June from 54.9 in the prior month, a two-month low, while the manufacturing index, meanwhile, slid to a five-month low of 46.9 from 51 in May.
“US stocks are sliding as the global growth outlook continues to deteriorate following soft global PMI readings,” Edward Moya, Senior Market Analyst at Oanda wrote in a note Friday. “The risk of a sharper economic downturn is greater for Europe than it is for the US, so that could keep the dollar supported over the short-term.”
With central banks around the world promising to raise borrowing costs even higher to tame inflation, analysts focused on the potential ramifications of higher interest rates for both the health of the economy and equity valuations. In the U.S., analysts across Wall Street have warned that the S&P 500 and Nasdaq Composite valuations are again looking unreasonably rich.
The price-to-earnings ratio for the S&P 500 based on Wall Street’s forecasts for corporate earnings over the next 12 months is just shy of 19, according to FactSet. That’s higher than the five-year average.
While the Federal Reserve opted to leave interest rates on hold in June, Chair Jerome Powell reiterated in Congressional testimony this week that senior Fed officials strongly support hiking rates “a couple of times” later this year.
Ryan Belanger, founder and managing principal at Claro Advisors, is among the analysts who believe the market’s rally is getting ahead of itself.
“The market is too confident that the Federal Reserve can engineer a soft landing and it would be wise for investors to reduce exposure to stocks,” Belanger said in emailed commentary.
With the S&P 500 down nearly 1.5% for the week, stocks are on track for their biggest such pullback since March 10, FactSet data showed.
Of course, the market is coming off a rally which is leading some to conclude that this might be a healthy pullback. The S&P 500 had climbed for five straight weeks through June 16, its longest such winning streak since November 2021, Dow Jones Market Data show. Meanwhile, the technology-heavy Nasdaq had logged eighth straight weekly advance to mark its longest stretch of gains since March 2019.
“Some of this is a bit of a giveback and when you look at the market action from the last month and a half, we’ve kind of gone parabolic,” said Paul Nolte, senior wealth manager and market strategist at Murphy & Sylvest Wealth Management, during a phone interview with MarketWatch.
Defensive assets like the dollar and high-quality sovereign bonds were outperforming on Friday, with the yield on the 10-year Treasury note
TMUBMUSD10Y,
falling five basis points to 3.744%. Yields on 10-year U.K. gilt
TMBMKGB-10Y,
and 10-year German bunds were down by 10 basis points or more. Crude prices
CL.1,
which are sensitive to expectations for the global economy, fell 1.6% to $68.49 a barrel.
However, U.S. Treasury Secretary Janet Yellen struck an upbeat tone Friday when she said during an interview with Bloomberg that recession risks in the U.S. have faded “because look at the resilience of the labor market, and inflation is coming down.”
Investors will hear from Cleveland Fed President Loretta Mester later. She’s expected to speak at 1:40 p.m. Eastern Time.
[ad_2]
[ad_1]
The summer haze settling over stocks doesn’t look ready to budge Thursday, with the S&P 500 index
SPX,
in the throes of its longest losing streak since May.
On the bright side, the index is looking at a 6% gain for the June quarter, whose end is just a few days away.
In other corners of the market, the quarter has been less forgiving. Consumer staples, those things you can’t live without, have lost over 1%, perhaps reflecting the tougher economic times we are living in. Within that sector, though, is beer and one name that has indeed had a quartarius horriblis.
Anheuser-Busch InBev’s
ABI,
BUD,
U.S.-listed shares are down about 15%, as Bud Light sales have tumbled following consumer backlash to a social-media campaign featuring trans activist Dylan Mulvaney in April.
But our call of the day from Deutsche Bank says it’s time to buy this unloved stock, even if those Bud Light sales never recover. A team of analysts led by Mitch Collett have upgraded Anheuser-Busch shares to buy from hold and lifted their price target to €60 euros from €59 euros (they didn’t offer an ADR price target).
Recent underperformance of the stock “implies a permanent reduction in ABI’s U.S. business. Our proprietary survey data suggests these headwinds are likely to fade even if we do not expect the U.S. business ever to fully recover from its current challenges,” said Collett.
The analysts pointed to recent Nielson data that showed ABI’s U.S. business currently down 12%, with Bud Light sales off 24% and the rest of its portfolio down 7%. But an analysis of distribution data shows ABI itself isn’t “losing shelf presence” as sales velocity is the primary driver of the decline, which bodes well if consumer sentiment improves, said Deutsche Bank.
Those declines are about a 12% headwind to ABI’s annual net income, which is in line with European underperformance seen by the stock, added Collett and the team.
Read: Bud Light dethroned as top-selling beer by Modelo, as boycott cuts into sales
Deutsche Bank conducted its own survey that showed 24% of Bud Light consumers are no longer buying that brand, with 18% buying less, but 21% buying more and 37% buying the same amount. Those findings are largely consistent with Nielson;s, said the analysts.
Deutsche Bank’s own survey also showed that 42% of Bud Light drinkers expect to be buying Bud Light again in three to six months, versus 29% who see that as unlikely. And 50% expect that battered beer’s reputation will recover in time, versus 30% who says it won’t. “We believe this bodes well for the brand, recapturing some of its lost share,” said Collett and the team.
Analysts at RBC Capital also recently pushed back on the selloff for the stock, saying the hit to the shares and forecasts for the stock are “excessive,” as they don’t see Bud Light’s troubles hurting AB InBev outside the U.S.. They said AB InBev is a “nerve-racking buying opportunity.”
Ahead of Thursday’s open, U.S.-listed Bud shares were up about 1.3%, tracking gains from its Belgian shares.
U.S. stock index futures
ES00,
NQ00,
are drifting lower, with bond yields
TMUBMUSD02Y,
TMUBMUSD10Y,
on the rise and oil prices
CL.1,
also weaker. The Norwegian krone
USDNOK,
is up 1.5% against the dollar after the country’s central bank hiked interest rates 50 basis points. Switzerland also hiked rates, but the Swiss franc is steady
USDCHF,
The British pound
GBPUSD,
is higher after the Bank of England also hiked interest rates by 50 basis points. The Turkish lira was falling slightly after the central bank, under new management, hiked interest rate to 15% from 8.5%, against forecasts for a hike to 20%.
China markets were closed for a holiday, with losses elsewhere, such as Japan
NIK,
and Australia
XJO,
For more market updates plus actionable trade ideas for stocks, options and crypto, subscribe to MarketDiem by Investor’s Business Daily.
Federal Reserve Chair Jerome Powell’s second day of testimony on Capitol Hill kicks off at 10 a.m. Eastern. On Wednesday, he said higher interest rates should be expected , but didn’t offer any clues on timing. U.S. weekly jobless benefit claims and current account data are due at 8:30 a.,m. ET, with leading indicators also at 10 a.m., alongside a speech from Cleveland Fed President Loretta Mester. Richmond Fed President Tom Barkin will speak at 4:30 p.m.
The Bank of England will announce an interest-rate decision at 7 a.m. ET and after worse-than-expected inflation data on Wednesday, a 50 basis-point hike hasn’t been ruled out.
Darden Restaurants
DRI,
will report ahead of the open, with Smith & Wesson
SWBI,
due after the close.
Tesla stock
TSLA,
is down 2% in premarket trading on the heels of the EV maker’s worst loss in two months.
Joining recent actions by other big stakeholders cashing in on big gains for Nvidia
NVDA,
a board member just sold $51 million in stock.
A giant drilling machine is moving Stockholm toward an emissions-free future
These were the top searched tickers on MarketWatch as of 6 a.m. :
| Ticker | Security name |
|
TSLA, |
Tesla |
|
MULN, |
Mullen Automotive |
|
NVDA, |
Nvidia |
|
AMC, |
AMC Entertainment |
|
APE, |
AMC Entertainment preferred holdings |
|
NIO, |
Nio |
|
PLTR, |
Palantir Technologies |
|
MANU, |
Manchester United |
|
SPCE, |
Virgin Galactic Holdings |
|
AAPL, |
Apple |
Are Elon Musk and Mark Zuckerberg ready for a cage match?
It’s summertime. Let your kids get bored.
Tokyo streets now offer the chance to snuggle an alpaca
Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern.
Listen to the Best New Ideas in Money podcast with MarketWatch reporter Charles Passy and economist Stephanie Kelton.
[ad_2]
[ad_1]
Stock futures were falling following three straight days of losses for Wall Street. Federal Reserve Chairman Jerome Powell again will be delivering testimony before Congress. His comments on Wednesday that the central bank likely would be raising rates further this year pushed markets lower.
[ad_2]
[ad_1]
U.S.-listed shares of Logitech International SA, a Swiss maker of computer peripherals and software, were down about 3.6% Monday, amid reports that one of the company’s gamepads was being used to steer the submersible that went missing while taking five people down to the wreck of the Titanic.
Logitech’s $30 F710 gamepad was the controller of the OceanGate submarine vessel that is the subject of a massive sea-and-air search, according to a segment on the “CBS News Sunday Morning Show” by reporter David Pogue that aired last November.
In the segment, OceanGate Chief Executive Stockton Rush, one of the five people currently onboard the submersible, showed Pogue the game controller that he said “runs the whole thing,” causing the reporter to burst out laughing.
Pogue later describes the “MacGyver jerry-riggedness” of the whole thing, which included off-the-shelf components such as lights from Camper World and construction pipes as ballast. Rush explained that other parts of the vessel were made in cooperation with Boeing, NASA and the University of Washington.
As The Verge pointed out, game controllers are used in other instances to control submarine periscopes, including by the U.S. Navy and Elon Musk’s The Boring Company.
On Monday, Pogue tweeted that during his report which was filmed last summer, the submersible got lost for a period — while he was on the surface.
In that instance, the vessel still had contact with the surface. This time, there are no communications, although a Canadian military surveillance aircraft detected underwater noises early Wednesday, as the Associated Press reported.
A statement from the U.S. Coast Guard did not elaborate on what rescuers believed the noises could be, though it offered a glimmer of hope for those lost aboard the Titan. Estimates suggested as little as a day’s worth of oxygen could be left if the vessel is still functioning.
Also on the vessel with Rush are a British adventurer, two members of a Pakistani business family and a Titanic expert.
Authorities reported the carbon-fiber vessel overdue Sunday night, setting off the search in waters about 435 miles (700 kilometers) off the coast of of St. John’s.
The submersible had a four-day oxygen supply when it was put to sea around 6 a.m. Sunday, according to David Concannon, an adviser to OceanGate Expeditions, which oversaw the mission.
Questions remain about how teams could reach the lost submersible, which could be as deep as about 12,500 feet (3,800 meters) below the surface near the watery tomb of the historic ocean liner. Newly uncovered allegations also suggested there had been significant warnings made about the vessel’s safety prior to its disappearance.
Read: Missing Titanic submersible: Here’s what we know so far
Logitech’s stock
LOGI,
is down about 18% in the month to date.
[ad_2]
