ReportWire

Tag: ebay inc

  • CNBC Daily Open: U.S. seeks Boeing guilty plea

    CNBC Daily Open: U.S. seeks Boeing guilty plea

    [ad_1]

    The Dow Jones Industrial Average rose about 3.8% in the first six months of the year, lagging way behind the Nasdaq, up 18.1%, and the S&P 500, which jumped 14.5% — as investors plowed into artificial intelligence-related stocks.

    Brendan Mcdermid | Reuters

    This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Dow lags tech rally 
    The
    Dow Jones Industrial Average rose about 3.8% in the first six months of the year, lagging way behind the Nasdaq, up 18.1%, and the S&P 500, which jumped 14.5% as investors plowed into artificial intelligence-related stocks. On Friday, the S&P 500 and Nasdaq hit record highs before pulling back. The yield on the 10-year Treasury rose as investors digested the latest inflation data. U.S. oil prices rose for the third straight week amid fears of a war between Israel and the Iran-backed militia Hezbollah.

    Boeing ‘guilty plea’ 
    U.S. prosecutors plan to seek a guilty plea from Boeing over a charge related to two fatal 737 Max crashes in 2018 and 2019, attorneys for the victims’ family members said. The Justice Department is reviewing whether Boeing violated a 2021 settlement that shielded the company from federal charges. Boeing agreed then to pay a $2.5 billion penalty for a conspiracy charge tied to the crashes. The DOJ revisited the agreement after a door panel blew out of a new 737 Max 9 in January, sparking a new safety crisis.

    Under fire
    Nike CEO John Donahoe faces growing discontent as the company’s stock plummeted 20% on Friday, its worst day since 1980, after forecasting a significant decline in sales. As Wall Street digested the dismal outlook from the world’s largest sportswear company, at least six investment banks downgraded Nike’s stock. Analysts at Morgan Stanley and Stifel took it a step further, specifically calling the company’s management into question.

    Bitcoin windfall
    Mt. Gox, a bankrupt Japanese bitcoin exchange, is set to repay creditors nearly $9 billion worth of Bitcoin following a 2011 hack. The court-appointed trustee overseeing the exchange’s bankruptcy proceedings said distributions to the firm’s roughly 20,000 creditors would begin this month. The payout is likely to be a windfall for those who waited a decade, with Bitcoin’s value surging from around $600 in 2014 to over $60,000 today. One claimant, Gregory Greene, could potentially receive $2.5 million for his $25,000 investment.

    Inflation cooling
    A key inflation measure, watched closely by the Federal Reserve, slowed to its lowest annual rate in over three years in May, with the core personal consumption expenditures price index rising 2.6% from a year ago. “This is just additional news that monetary policy is working, inflation is gradually cooling,” San Francisco Fed President Mary Daly told CNBC’s Andrew Ross Sorkin during a “Squawk Box” interview. “That’s a relief for businesses and households who have been struggling with persistently high inflation. It’s good news for how policy is working.”

    [PRO] Rally will broaden
    The tech sector has driven market performance in 2024, with the S&P 500 tech group up 28% and Nvidia soaring 149%, while small-caps have lagged. Oppenheimer’s chief market strategist John Stoltzfus believes the rally will broaden. CNBC’s Lisa Kailai Han looks at the reasons behind his call

    The bottom line

    The New York Times editorial board has lost faith in President Joe Biden, calling for him to step aside. Iranians will need another go at electing a new president, French voters cast their votes in the first round of snap elections that saw big gains for Marie Le Pen's far-right party and Brits will go to the polls on Thursday.

    It's a busy political environment for markets to navigate. Wall Street has shown remarkable resilience thanks to the AI-powered rally in the first half of the year, which has seen the Nasdaq soar 18% so far. Nvidia is up almost 150%. There could be more to come; Bank of America believes Nvidia and Apple could still deliver "superior returns."

    While one of the biggest bulls on the Street expects the rally to broaden away from the megacaps, Wall Street wasn't feeling any love for Nike's CEO. The company had its worst day of trading since its IPO in December 1980, losing $28 billion in market cap on Friday after slashing its sales forecasts.

    John Donahoe was brought in from eBay to transform the athletic apparel giant's digital channels. The company ditched its retail partners, became too dependent on its aging sneaker ranges and lost ground to new contenders Hoka and On. It'll certainly make an interesting case study for MBA programs for all the wrong reasons. As Wall Street questioned Donahoe's position, he still had the approval of its founder.

    Friday also saw the Fed's favored inflation measure come in line with expectations, raising the prospect of interest rate cuts later this year.

    "I really think the Fed should tee up a cut at the July 31 meeting, confirm it at Jackson Hole in August and do it in September," Wharton finance professor Jeremy Siegel told CNBC's "Squawk on the Street." He added that one or maybe one-and-a-half rate cuts have already been priced in.

    "I actually think there will be more because there might be a little bit more softness in the economy and better inflation numbers, both of those feeding better rates," he continued. Siegel also said it is "hard to say" where the bull market's trajectory currently stands.

    In a four-day trading week — markets are closed for the July 4 Independence Day holiday — the big economic number to watch is the June jobless data on Friday. CNBC's Sarah Min has more on what to expect.

     — CNBC's Lisa Kailai Han, Yun Li, Jeff Cox, Leslie Josephs, Gabrielle Fonrouge, Hakyung Kim, Brian Evans, Spencer Kimball, Ryan Browne and MacKenzie Sigalos contributed to this report.

    [ad_2]
    Source link

  • BlackRock-backed fintech Trustly says IPO still at least one year out even as profits jump 51%

    BlackRock-backed fintech Trustly says IPO still at least one year out even as profits jump 51%

    [ad_1]

    Trustly CEO Johan Tjarnberg.

    Trustly

    The boss of Swedish financial technology startup Trustly says an initial public offering for the company is still a year or two away from happening, even after a 51% jump in operating profit.

    In an exclusive interview with CNBC, Johan Tjarnberg, CEO of Trustly, said that his firm still needs time to prove the value of its open banking technology to investors before going public.

    “We need another year or two to really demonstrate to the market that open banking is happening happening, it’s here,” Tjarnberg told CNBC.

    “For me, there is so much we want to demonstrate to the market in terms of user adoption, merchant adoption. We still need some time to execute on our existing playbook.”

    Trustly is holding out on an IPO even after reporting a strong set of financials. Results shared exclusively with CNBC show the firm reported revenues of $265 million in its 2023 full year.

    Growth accelerated significantly in the second half of the year, Trustly said, climbing 27% compared with the same period in 2022. That was as transaction volumes spiked 48% over the same period.

    Tjarnberg told CNBC that the company’s performance in 2023 was heavily driven by the growth at its U.S. business. Trustly merged with American rival PayWithMyBank in 2020.

    “We invested a lot into the U.S. market,” Tjarnberg said. “We were roughly 20 people there four years ago; we now have 500 supporting the U.S. market.”

    Tjarnberg said that, in the first quarter of this year, Trustly saw heightened growth in areas like utilities, retail, and travel, with 22% of volumes coming from those core verticals, up 44% over 12 months.

    Chipping away at Visa, Mastercard?

    Gap between closed-source and open-source AI companies smaller than we thought: Hugging Face

    In the U.S., Tjarnberg said, Trustly is seeing heightened demand from merchants “trying to take down costs,” as high card processing fees have made them more price-conscious.

    “There is no secret that our objectives and ambition is to bring a good alternative to other payment methods, including cards,” he told CNBC.

    Open banking is a trend which has gained significant momentum, particularly across Europe.

    That’s thanks to the introduction of regulations which require banks to open their clients’ account data and payment functionalities to third-party firms.

    It has paved the way for new entrants into finance including fintechs, startups and tech companies. Founded in 2008, Sweden’s Trustly competes with the likes of GoCardless, TrueLayer, Volt, Bud, and Yapily.

    Future product plans

    Trustly expects to launch a feature that allows its merchants to set up recurring payments for customers. That will be targeted at things like telecom packages and subscription-based music streaming services.

    Tjarnberg said Trustly is “bullish” on the mobile space, particularly in the U.S. after having seen early success in mobile billing partnerships with the likes of AT&T and T-Mobile.

    Trustly is used by more than 9,000 merchants worldwide including Facebook, Alibaba, PayPal, eBay, AT&T, Unicef, Dell, Lyft, DraftKings, Wise, and eToro.

    Trustly is majority-owned by venture capital firm Nordic Capital, which owns a 51.1% stake in the business. Alfven & Didrikson is its second-biggest backer, with a 11.1% stake, while BlackRock holds an 8.9% stake.

    Aberdeen Standard Investments and Neuberger Berman own 0.7% and 0.9% stakes in Trustly, respectively, while others including the Trustly management and employees own 27.4%.

    [ad_2]

    Source link

  • EBay to eliminate about 1,000 jobs, or 9% of full-time workforce

    EBay to eliminate about 1,000 jobs, or 9% of full-time workforce

    [ad_1]

    eBay’s headquarters in San Jose, California, U.S.

    Bloomberg |  Getty Images

    EBay said Tuesday that it plans to lay off 9% of the company’s workforce, equal to about 1,000 full-time jobs, as the tech industry continues to downsize to start 2024. The stock rose more than 3% in extended trading.

    Jamie Iannone, eBay’s CEO, told employees in a letter published on a corporate blog, that the company will also “scale back the number of contracts we have within our alternate workforce over the coming months.”

    Iannone said the job cuts are necessary because eBay’s “overall headcount and expenses have outpaced the growth of our business.”

    “To address this, we’re implementing organizational changes that align and consolidate certain teams to improve the end-to-end experience, and better meet the needs of our customers around the world,” Iannone said. “Shortly, we will begin notifying those employees whose roles have been eliminated and entering into a consultation process in areas where required.”

    Following hefty job cuts last year, tech companies have continued to eliminate positions in January as concerns about consumer and business spending persist. Amazon, Alphabet and Unity have confirmed cuts this month, and SAP said on Tuesday that it aims to carry out voluntary buyouts or enable job changes for 8,000 employees as part of a restructuring program for 2024.

    Regarding eBay’s cuts, Iannone said he wants employees to work from home on Jan. 24, “to provide some space and privacy for these conversations.”

    “These changes are difficult, but I’m confident that by working together we will become stronger than ever,” Iannone said. “In the months ahead, you will see a more focused, agile, and responsive eBay — one that is better positioned to advance our purpose of creating economic opportunity for all.”

    EBay shares dropped about 4% in November after the company provided fourth-quarter revenue guidance that trailed Wall Street estimates. During a call with analysts, Iannone said that eBay had “observed softening consumer trends to date in Q4, and particular challenges in Europe, suggesting we may see a more muted seasonal uptick over the holidays.”

    He added that “Inflationary pressures and rising interest rates continue to weigh on consumer confidence and pressured demand for discretionary goods.”

    Earlier in January, eBay said it would pay a $3 million criminal penalty as part of a settlement related to a cyberstalking and harassment campaign conducted by a group by former employees.

    WATCH: Jim Cramer on eBay

    [ad_2]

    Source link

  • This Ohio museum shows that TV is older than you might think

    This Ohio museum shows that TV is older than you might think

    [ad_1]

    The history of television began long before millions of people gathered in front of their black-and-white sets and fiddled with the antenna and horizontal hold to watch Lucy, Uncle Miltie and Howdy Doodie.

    “Everybody thinks TV started in the ‘50s or the late ’40s. Almost nobody knows it existed before World War II and even goes back to the ‘20s,” said Steve McVoy, 80, the founder and president of the Early Television Museum in Hilliard, Ohio, a suburb of Columbus.

    The museum holds a large collection of televisions from the 1920s and 1930s, and scores of the much-improved, post-World War II, black-and-white sets that changed the entertainment landscape. There are also several of the first-generation color sets developed in the early 1950s.

    When Justina Machado returns home to her native Chicago, she barely recognizes it. Machado grew up in Chicago’s inner city, in the neighborhoods Lincoln Park, Humboldt Park and Logan Square — all of which she says have been gentrified.

    This week’s new entertainment releases include Taylor Swift’s rerecording of her “Speak Now,” a documentary on Wham!

    Fox News brought cake, balloons and fake mustaches to the set of “Fox & ”Friends” to pay tribute to Geraldo Rivera on Friday.

    Oscar winner Alan Arkin has died at age 89. The popular character actor was nominated three times for Academy Awards and finally won in 2007 as the foul-mouthed grandfather in the surprise hit “Little Miss Sunshine.”

    “The original idea for the museum was to deal with the earliest television technology,” McVoy said. “The sets got pretty boring after 1960, just these big things in plastic cabinets.”

    The collection is one of the world’s largest, rivaled in North America only by the MZTV Museum of Toronto. About 180 television sets are on exhibit, arranged in chronological order, with another 50 in storage.

    “So many of the sets were incredible to see in their original form,” said Doron Galili, a research fellow in media studies at Stockholm University and author of “Seeing by Electricity: The Emergence of Television, 1878 – 1939” (Duke University Press).

    He visited in 2016, and said the museum gives visitors “a better sense not only of the technological aspects of television history but also of its place within popular culture, and modern design and material culture.”

    THE BACKSTORY

    McVoy’s personal history with television also goes back many years. When he was 10 and living in Gainesville, Florida, he was fascinated by his family’s first set. “I tinkered with it, much to my parent’s dismay,” he said.

    He pulled a little red wagon around the neighborhood with a sign that advertised free television repairs.

    “Nobody accepted my offer,” McVoy said, adding it was unlikely he could have repaired a set if anyone had asked.

    A few years later, he began working in a television repair shop and learned those skills. He opened his own shop, Freedom TV, in the mid-1960s, repairing sets and installing antennas atop apartment buildings and motels. Soon after, he formed his first cable-television business, Micanopy Cable TV, followed by Coaxial Communications and Telecinema. McVoy sold his cable holdings in 1999 and, looking for something to do, decided to start collecting old television sets.

    “I never collected anything before,” he said.

    The first set he bought, on eBay, was an RCA TRK 12, which was introduced at the 1939 World’s Fair and retailed at $600, a princely sum at the time.

    “I think I paid about a thousand bucks for it,” McVoy said, adding that it was in disrepair and missing several parts. “A complete one would have cost five or six thousand; the pre-war sets are very valuable.”

    He refurbished the TRK 12, and began collecting more old sets and visiting other collectors who shared his growing passion.

    “All their collections were in their basements and attics,” McVoy said. This, plus his wife’s annoyance at all the old sets cluttering up their living room, hatched the idea to start a museum.

    The Early Television Museum opened in 2002 as a non-profit foundation. It’s housed in a large former warehouse. Each room features an audio guide, narrated by McVoy. Press another button on some of the sets and and a few old shows appear.

    Until a few years ago, McVoy helped restore many of the museum’s televisions himself. “My eyesight and the stability of my hands makes it difficult now,” he said.

    HOW TV BEGAN

    The idea for transmitting pictures goes back to the 1880s. “The problem of television … has not yet been solved,” The New York Times reported on Nov. 24, 1907.

    The first crude mechanical televisions were developed in the mid 1920s by John Logie Baird in England and Charles Jenkins in the United States, and relied on rotating discs to transmit pictures. According to the museum, by 1930, “television was being broadcast from over a dozen stations in the U.S., not only in the major cities such as New York and Boston, but also from Iowa and Kansas. Several manufacturers were selling sets and kits.”

    The screens were small and the picture quality extremely poor, with lots of “fading and ghosting.” Programming was limited.

    Television made what McVoy calls its “formal debut” on April 30, 1939, at that World’s Fair in New York. President Roosevelt’s speech to open the fair was broadcast live, as an NBC mobile unit sent signals to a transmitter atop the Empire State Building. From there, the signals “went out to visual receivers within a fifty-mile radius in the metropolitan area,” reported the New York Daily News.

    RCA and General Electric introduced television models at the World’s Fair. A total of about 7,000 sets were made in the United States in 1939 and 1940, and only about 350 still exist, according to the museum.

    World War II halted the production of TV sets in the United States. Engineers who learned about radar and aircraft communications then applied that knowledge to TV technology after the war, when a boom in sales and programming began.

    There were about 200,000 sets in the U.S. in 1947, and 18 million by the end of 1953, according to McVoy’s research. Audiences loved “I Love Lucy” (which began airing in 1951) and “The Honeymooners” (began 1955).

    The color revolution came in 1954. Sales were initially slow, due in part to cost. It wasn’t until the early 1970s that color sets outsold black-and-white ones.

    “We have (an example of) virtually every set that is available,” McVoy said.

    SEEKING PHILO FARNSWORTH

    At the top of his wish list? A set made by electronic-television pioneer Philo Farnsworth in the late 1920s or early 1930s.

    “Only three still survive as far as we know and they’re all already in other museums,” McVoy said. “If a fourth ever shows up, we’d go to our donors and would be able to get it.”

    —-

    For more AP Travel stories, go to https://apnews.com/lifestyle.

    [ad_2]

    Source link

  • Fed meeting minutes and retail earnings are in focus in the week ahead

    Fed meeting minutes and retail earnings are in focus in the week ahead

    [ad_1]

    [ad_2]

    Source link

  • PayPal CEO Dan Schulman to leave at end of 2023, company begins search for successor

    PayPal CEO Dan Schulman to leave at end of 2023, company begins search for successor

    [ad_1]

    Dan Schulman, CEO of Paypal, attends the annual Allen and Co. Sun Valley media conference in Sun Valley, Idaho, July 10, 2019.

    Gerard Miller | CNBC

    PayPal said on Thursday that CEO Dan Schulman will retire and leave the online payments company at the end of 2023.

    Schulman, who became PayPal CEO after the split from eBay in 2015, notified the company of his decision to retire at the end of December. He will remain a member of PayPal’s board of directors, which is hiring a search firm to find a successor.

    “I’m proud of what we have accomplished at PayPal and of the incredibly talented and committed people I work with every day,” Schulman said in a statement. “Together, we have reimagined financial services and e-commerce, and worked to improve the financial health of our customers.”

    PayPal shares jumped by about 130% since the 2015 spinoff. But the company has lost roughly three-quarters of its value since the stock’s peak in July 2021.

    In late January, PayPal said it would lay off 2,000 employees, which equates to 7% of the company’s workforce. Schulman said in a statement at the time that PayPal was addressing the “challenging macroeconomic environment.”

    Last summer, activist investor Elliott Management accumulated an undisclosed stake in PayPal.

    In an interview with CNBC’s Kate Rooney on Thursday, Schulman said he didn’t experience any pressure from Elliott.

    “We actually really haven’t spoken much this past quarter,” Schulman said.

    “Jesse and I are good friends,” he said, referring to Elliott Management managing partner Jesse Cohn. “He’s been incredibly supportive and I’m sure this announcement comes as a real surprise and shock because he’s been so supportive.”

    Schulman added that PayPal’s board just wants to find the very best candidate,” and said it is “going to look across the company and externally.”

    He said PayPal is “in a good place” and is “in a position to deliver a strong year,” adding that the board would have enough time to find a successor.

    “The timing was right,” Schulman said. “It makes sense.”

    PayPal announced Schulman’s upcoming departure alongside its fourth-quarter earnings report. The company said net revenue grew 7% year-over-year to $7.4 billion in the fourth quarter.

    The stock slipped in after-hours trading to $77.99.

    WATCH: Earnings Exchange

    [ad_2]

    Source link

  • TikTok banned on government devices under spending bill passed by Congress

    TikTok banned on government devices under spending bill passed by Congress

    [ad_1]

    Researchers at the University of Vermont analyzed 1,000 TikTok videos under the most popular hashtags related to body image and eating

    Jakub Porzycki | NurPhoto | Getty Images

    Under the bipartisan spending bill that passed both chambers of Congress on Friday, TikTok will be banned from government devices, underscoring the growing concern about the popular video-sharing app owned by China’s ByteDance.

    The bill, which still has to be signed into law by President Joe Biden, also calls on e-commerce platforms to do more vetting to help deter counterfeit goods from being sold online, and forces companies pursuing large mergers to pay more to file with federal antitrust agencies.

    related investing news

    CNBC Pro

    Congress failed to pass many of the most aggressive bills targeting tech, including antitrust legislation that would require app stores developed by Apple and Google to give developers more payment options, and a measure mandating new guardrails to protect kids online. And though Congress made more headway this year than in the past toward a compromise bill on national privacy standards, there remains only a patchwork of state laws determining how consumer data is protected.

    Center-left tech industry group Chamber of Progress cheered the exclusion of several antitrust bills that would have targeted its backers, which include Apple, Amazon, Google and Meta.

    “What you don’t see in this year’s omnibus are the more controversial measures that have raised red flags on issues like content moderation,” Chamber of Progress CEO Adam Kovacevich said in a statement following the release of the package text earlier this week. The group earlier raised concerns about a prominent antitrust measure, the American Innovation and Choice Online Act.

    Another industry group, NetChoice, also applauded Congress for “refusing to include radical and unchecked progressive proposals to overhaul American antitrust law in this omnibus.”

    But the bills lawmakers passed in the spending package will still make their mark on the tech industry in other ways.

    TikTok ban on government devices

    The banning of TikTok on government devices could benefit rival platforms like Snap and Meta’s Facebook and Instagram that also fight for young consumers’ attention. The bill includes an exception for law enforcement, national security and research purposes.

    Lawmakers on both sides of the aisle, as well as FBI Director Christopher Wray, have voiced fear that TikTok’s ownership structure could make U.S. user data vulnerable, since companies based in China may be required by law to hand over user information. TikTok has repeatedly said its U.S. user data is not based in China, though those assurances have done little to alleviate concern.

    The company has been working toward a deal with the administration to assuage national security fears through the Committee on Foreign Investment in the U.S.

    “We’re disappointed that Congress has moved to ban TikTok on government devices — a political gesture that will do nothing to advance national security interests — rather than encouraging the Administration to conclude its national security review,” a TikTok spokesperson said in a statement following the release of the package text. “The agreement under review by CFIUS will meaningfully address any security concerns that have been raised at both the federal and state level. These plans have been developed under the oversight of our country’s top national security agencies — plans that we are well underway in implementing — to further secure our platform in the United States, and we will continue to brief lawmakers on them.”

    Deterring online counterfeit sales

    The spending package also includes the INFORM Consumers Act, which seeks to deter counterfeit, stolen or harmful products from being sold online. The bill requires online marketplaces like Amazon to promptly collect information like bank and contact details from “any high-volume third party seller” and to verify that data.

    Though Amazon initially opposed the bill last year, writing that it was “pushed by some big-box retailers” and claiming it would punish small businesses that sell online, the company ended up supporting a version of the bill, saying it was important to have a federal standard rather than a patchwork of state laws. Etsy and eBay had earlier supported the bill.

    “Passing the bipartisan INFORM Act would be a major victory for consumers, who deserve to know who they’re buying from when they visit an online marketplace,” Kovacevich said in a statement. “This legislation has been through years of hearings and markups and has earned the support of both parties as well as brick-and-mortar stores and online marketplaces.”

    Etsy’s head of Americas advocacy and public policy, Jeffrey Zubricki, said in a statement the bill “will achieve our shared goal of protecting consumers from bad actors while avoiding overly broad disclosure requirements that would harm our sellers’ privacy and hinder their ability to run their creative businesses.”

    Higher fees for big mergers

    While more ambitious antitrust measures targeting digital platforms didn’t make it into the end-of-year legislation, there is one bill to help raise money for the antitrust agencies that scrutinize mergers. The Merger Filing Fee Modernization Act will raise the cost companies pursuing large mergers must pay to file with the antitrust agencies, as they’re required to do under the law. The bill also lowers the cost for smaller deals and allows the fees to be adjusted each year based on the consumer price index.

    The measure is meant to help fund the Federal Trade Commission and Department of Justice Antitrust Division, which have seen a large uptick in merger filings over the past few years without adequate budget increases.

    While it fell short of antitrust advocates’ hopes, the inclusion of the merger filing fee bill still gained praise.

    “This is a major milestone for the anti-monopoly movement,” said Sarah Miller, executive director of the American Economic Liberties Project, backed in part by the Omidyar Network. Miller said the bill will “significantly strengthen antitrust law for the first time since 1976.”

    “Big Tech, Big Ag and Big Pharma spent extraordinary sums in an unprecedented effort to keep Congress from delivering on antitrust reform and undermine the ability of state and federal enforcers to uphold the law — and they lost,” Miller added.

    Sen. Amy Klobuchar, D-Minn., who sponsored the bill, said in a statement earlier this week its inclusion “is an important step to restructure merger fees after decades of the status quo so we can provide our antitrust enforcers with the resources they need to do their jobs.”

    “This is clearly the beginning of this fight and not the end,” she said. “I will continue to work across the aisle to protect consumers and strengthen competition.”

    Empowering state AGs in antitrust cases

    Another antitrust bill included in the package was a version of the State Antitrust Enforcement Venue Act. The bill gives state attorneys general the same power as federal enforcers in antitrust cases to choose the district in which they bring their cases and prevent them from being consolidated in a different district.

    Under the legislation, companies defending against claims of antitrust violations won’t be able to pick what they perceive to be a more favorable venue to fight the case.

    That’s what happened in an antitrust case against Google brought by a group of state attorneys general accusing the company of illegally monopolizing the digital advertising market. The company transferred the case from Texas to New York, to be heard alongside private antitrust complaints against the company in the pretrial proceedings.

    Last year, attorneys general from 52 states and territories wrote Congress in support of the legislation.

    Transparency on ransomware attacks

    The bipartisan RANSOMWARE Act also made it into the spending bill, requiring the FTC to report to Congress on the number and types of foreign ransomware or other cyberattack complaints it receives.

    The FTC also must report to Congress trends in numbers it sees in these complaints, including those that come from individuals, companies or governments of foreign adversaries like China, North Korea, Iran and Russia. And it must share information on its litigation actions related to these cases and their results.

    The FTC can also share recommendations for new laws to strengthen resilience against these attacks as well as for best practices that businesses can follow to protect themselves.

    Research into tech impacts on kids

    Lawmakers grill TikTok, YouTube, Snap executives

    [ad_2]

    Source link

  • This fund beats the S&P 500 by using just 75 of its components. Here’s how it works.

    This fund beats the S&P 500 by using just 75 of its components. Here’s how it works.

    [ad_1]

    What worked well during the years-long bull market through 2021 — a focus on growth, regardless of price — has ground to a halt this year. The rebirth of the value style of investing — and modest valuations overall — has taken hold.

    The approach taken by the Invesco S&P 500 GARP ETF has paid off through both bull and bear markets.

    Let’s begin with a 10-year chart comparing total returns with dividends reinvested for the Invesco S&P 500 GARP ETF
    SPGP,
    +0.67%

    and the SPDR S&P 500 ETF Trust
    SPY,
    +0.78%
    ,
    which tracks the benchmark S&P 500:


    FactSet

    So far this year, SPGP is down 12%, while SPY is down 16%. But the long-term chart shows significant and consistent outperformance for SPGP, even during the bull market.

    The S&P 500 GARP Index

    GARP stands for “growth at a reasonable price.” SPGP tracks the S&P 500 GARP Index, which is reconstituted and rebalanced twice a year, on the third Fridays of June and December. The next change occurs Dec. 16.

    S&P Dow Jones Indices assigns a growth score to each component of the S&P 500 by averaging the three-year compound annual growth rate (CAGR) for earnings and sales per share.

    The top 150 components of the S&P 500 by growth score are eligible for inclusion in the GARP index. Those 150 are ranked by “quality/value composite score,” which is the average of these three ratios:

    • Financial leverage — total debt to book value.

    • Return on equity — trailing 12 months’ earnings per share divided by book value per share.

    • Earnings-to-price — 12 months’ earnings per share divided by the share price.

    The top 75 of the 150 by QV rankings are then included in the GARP index and weighted by the growth score, with portfolio weightings ranging from 0.5% to 5%.

    There is a weighting limitation of 40% to any one of the 11 S&P sectors.

    Addressing concentration risk

    The benchmark S&P 500 Index
    SPX,
    +0.75%

    is weighted by market capitalization, which means it is more heavily concentrated than you might expect — success is rewarded, with rising stocks more heavily weighted over time.

    That can backfire during a bear market, with Amazon.com Inc.
    AMZN,
    +2.14%

    down 47% and Tesla Inc.
    TSLA,
    -0.34%

    down 51% this year, to name two prominent examples.

    Looking at the SPDR S&P 500 ETF Trust
    SPY,
    +0.78%
    ,
    which is the first and largest exchange traded fund and tracks the benchmark index by holding all of its components, six companies (Apple Inc.
    AAPL,
    +1.21%
    ,
    Microsoft Corp.
    MSFT,
    +1.24%
    ,
    Amazon, both common share classes of Alphabet Inc.
    GOOGL,
    -1.30%

     
    GOOG,
    -1.26%

    and Berkshire Hathaway Inc.
    BRK.B,
    +0.06%

    ) make up 19.2% of the portfolio.

    That percentage has come down this year, but a lot of risk remains concentrated in a handful of companies. (Apple alone makes up 6.4% of the SPY portfolio. Tesla is now the ninth-largest holding, making up 1.4% of the portfolio.)

    One way to address high concentration in an index fund is to use an equal-weighted approach, which Mark Hulbert recently discussed.

    For the Invesco S&P 500 GARP ETF, the underlying index’s selection methodology has resulted in much less portfolio concentration than we see in SPY, with the top five holdings making up 10.9% of the portfolio.

    Here are the 10 largest holdings of SPGP:

    Company

    Ticker

    Share of portfolio

    Regeneron Pharmaceuticals, Inc.

    REGN,
    +0.15%
    2.49%

    Cigna Corporation

    CI,
    +0.39%
    2.26%

    Everest Re Group, Ltd.

    RE,
    +0.24%
    2.21%

    Vertex Pharmaceuticals Incorporated

    VRTX,
    +1.18%
    1.98%

    D.R. Horton, Inc.

    DHI,
    -0.39%
    1.97%

    Expeditors International of Washington, Inc.

    EXPD,
    +0.23%
    1.96%

    Incyte Corporation

    INCY,
    +0.10%
    1.92%

    Goldman Sachs Group, Inc.

    GS,
    -0.51%
    1.83%

    Ebay Inc.

    EBAY,
    +1.67%
    1.81%

    Pfizer Inc.

    PFE,
    +3.07%
    1.73%

    Source: FactSet

    Click on the tickers for more information about any company, ETF or index in this article.

    You should also read Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.

    Don’t miss: 10 Dividend Aristocrat stocks expected by analysts to rise up to 54% in 2023

    [ad_2]

    Source link

  • Parents beware: Dangerous, recalled toys are still on sale | CNN Business

    Parents beware: Dangerous, recalled toys are still on sale | CNN Business

    [ad_1]


    New York
    CNNBusiness
     — 

    Parents shopping for their kids this holiday season need to be alert and carefully examine toys before they buy them because recalled and counterfeit toys are being sold online, a consumer report said Thursday.

    The 37th annual “Trouble in Toyland” toy safety report by Washington-based US Public Interest Research Group (PIRG) warned parents to be especially mindful of this hidden danger.

    PIRG said that in October it was able to buy more than 30 recalled toys from several US-based online sellers, noting that it is illegal for retailers and online marketplaces to sell toys that have been recalled.

    The report also said counterfeit toys that don’t necessarily meet mandatory US safety standards continue to be sold in stores and online.

    The group was able to buy close to a dozen different types of toys that had been recalled — for reasons that ranged from choking hazards to laceration risk to potential poisoning — from sellers on Facebook Marketplace and eBay, as well as several online toy shops.

    The toys included stuffed animals, action figures, activity balls for infants, musical toys, bath toys and a toddler’s riding toy, and a majority of them were bought new in the original packaging or new with tags.

    “None of the other sellers flagged, stopped or sent a warning about any of our other purchases of recalled toys,” the report said.

    The recalled toys that PIRG said it was able to purchase online included:

    – DigitDots 3mm and 5mm Magnetic Balls from HD Premier: These were recalled in March 2022 for injury to the digestive system if two or more magnets are swallowed.

    – Kidoozie Play Tents and Playhouses by Epoch Everlasting Play: These were recalled in July 2022 because the fabric playhouses and play tents fail to meet industry flammability standards.

    – Forky 11” Plush Toys from Pixar’s Toy Story: The toy was recalled in July 2019 because the googly plastic eyes on the toy can detach, posing a choking hazard to young children.

    – Early Learning Centre Little Senses Lights & Sounds Shape Sorter Toys from Addo Play: The toy set was recalled in October 2022 because the red cube can come apart and release a small white ball, posing a choking hazard.

    – 6-inch Aflac plush promotional ducks from Communicorp: The plush ducks were recalled in June 2022 because components contain excessive levels of toxic phthalates, which are dangerous because they can negatively impact brain and physical development in young children. The recall covered a variety of the plush duck characters, including Accident Duck, Business Duck, Fishing Duck, Police Duck, PGA Duck, One Day Pay Duck, Heisman Duck and Lifeguard Duck.

    – Blue’s Clues Foot to Floor Ride-on Toys from Huffy Corp: The toy was recalled in August 2022 because the ride-on toy can tip forward when a young child is riding it, posing fall and injury hazards.

    When the US Consumer Product Safety Commission (CPSC) and a toy manufacturer announce a recall, that means the toy must immediately be removed from store shelves and online marketplaces. Federal law prohibits the sale of products subject to a recall ordered by the CPSC or a voluntary recall by the company in consultation by the CPSC, the report said.

    PIRG offered this advice regarding the best way to avoid counterfeit toys: If the only place to buy a popular, hard-to-find toy is a website you’ve never heard of or that looks sketchy, there may be a reason for that.

    The toys may not be genuine, the report said, and may not meet safety standards for parts that can break or levels of toxins, which are common in plastic toys.

    [ad_2]

    Source link