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Tag: funding

  • Rivian shares sink after preliminary sales estimates, plan to offer $1.5 billion in convertible notes

    Rivian shares sink after preliminary sales estimates, plan to offer $1.5 billion in convertible notes

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    Shares of Rivian Automotive Inc. slid in the extended session Wednesday after the EV maker issued preliminary quarterly sales estimates that were on par with Wall Street’s forecasts and announced plans to offer $1.5 billion worth of convertible notes.

    Rivian
    RIVN,
    +9.22%
    ,
    in a filing, gave a preliminary third-quarter sales estimate of between $1.29 billion and $1.33 billion. Analysts polled by FactSet expected sales of $1.31 billion. The company estimated it had cash, cash equivalents and short-term investments of $9.1 billion as of Sept. 30.

    Rivian also said it plans to offer, subject to market and other conditions, $1.5 billion worth of “green” convertible senior notes due in 2030. That would be in a private offering to “qualified institutional buyers,” Rivian said.

    The plan would give buyers the option to purchase up to an additional $225 million in notes. The notes will be senior, unsecured obligations of Rivian. Noteholders will have the right to convert their notes in certain circumstances and during specified periods, the company said.

    Shares fell 8% after hours.

    Rivian stock ended the regular trading day up 9.2%, and so far this year has gained around 28%, which compares with an advance of around 10% for the S&P 500 index
    SPX,
    +0.81%
    .

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  • Stocks end mostly higher Monday despite resumed U.S. debt selloff

    Stocks end mostly higher Monday despite resumed U.S. debt selloff

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    Stocks closed mostly higher to kick off October as a sharp selloff in longer-dated U.S. government debt resumed. The Dow Jones Industrial Average
    DJIA,
    -0.22%

    fell about 74 points, or 0.2%, ending near 33,433, according to preliminary FactSet data. The S&P 500 index
    SPX,
    +0.01%

    ended flat at 4,288, while the Nasdaq Composite Index
    COMP,
    +0.67%

    gained 0.7%. Surging long-term borrowing costs remain a key focus in the final quarter of 2023, with the fear being they could derail the U.S. economy and spark more corporate defaults. The benchmark 10-year Treasury yield was punching higher to about 4.682% on Monday. Evidence of the debt rout could be found in the popular iShares 20+Year Treasury Bond ETF,
    TLT,
    -1.98%

    which cemented its lowest close since since August 2007 and in the iShares Core U.S. Aggregate Bond ETF,
    AGG,
    -0.70%

    which finished at its lowest since October 2008, according to Dow Jones Market Data. Investors in short U.S. government T-bills, however, have been mostly insulated from recent volatility, with yields steady in the 5.5% range, according to TradeWeb data.

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  • MeetingPackage Raises $4.6 Million in Series A Funding to Boost European Growth and Forge Into the North American Market

    MeetingPackage Raises $4.6 Million in Series A Funding to Boost European Growth and Forge Into the North American Market

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    Press Release


    Oct 2, 2023 19:30 EEST

    MeetingPackage, a leading all-in-one sales automation software specializing in venue and group bookings, has secured a $4.6 million Series A round led by Scale Capital. This additional funding will be used to accelerate growth in Europe and to facilitate expansion into the North American market. Furthermore, this funding will empower MeetingPackage to enhance its product suite to accommodate online bedroom bookings for groups and to extend its integrations to multiple Sales and Catering and Property Management Systems.

    Three years in a row, hoteliers around the globe have ranked MeetingPackage as the best venue-booking software in the industry-standard Hotel Tech Awards. MeetingPackage is the driving force behind the seamless online booking experiences of more than 6000 properties from independent hotels to global brands. With the new funding and product enhancements, MeetingPackage expects to serve an even larger customer base, covering direct, indirect, online and offline channel sales for groups and meetings & events.

    “At Scale Capital, we have been impressed by the trajectory and focus that MeetingPackage has demonstrated in recent years. MeetingPackage has built a comprehensive product suite, assembled an ambitious and determined team of industry experts, and demonstrated consistent growth and profitability – a rare feat in today’s market. We are excited to lead the investment round and support the European and US expansion of the company,” remarked Lars Jensen, Managing Partner at Scale Capital.

    Into the future

    The vision of MeetingPackage is to make meeting & event services bookable everywhere. 

    “We continue to refine and to innovate our product offerings to meet the evolving needs of the hospitality industry. Our team is gearing up to unveil a series of new features to streamline operations and elevate customer experience. We aspire to set new benchmarks for efficiency, user-friendliness, and customization,” said Joonas Ahola, CEO & Founder of MeetingPackage.

    The expansion into the North American market signifies a key milestone in the growth of MeetingPackage. This move represents not just a geographical expansion, but also a strategic initiative to foster collaborative relationships with local industry players, thereby cultivating a rich ecosystem.

    Joonas continues, “We are stepping into an era where technology creates unparalleled opportunities to the hospitality industry. With a solid foundation and a clear vision for the future, we are ready to redefine what is possible in the venue and group booking domain. This is just the beginning, and we couldn’t be more excited to lead the change towards a more connected and efficient industry. Together, with our stakeholders we are setting the stage for a future where MeetingPackage not only meets but exceeds the expectations of the modern venue and group booking landscape.”

    Source: MeetingPackage

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  • Dow falls 160 points Friday, S&P 500 posts worst monthly drop since December

    Dow falls 160 points Friday, S&P 500 posts worst monthly drop since December

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    Stocks closed mostly lower on Friday, with the S&P 500 cementing its biggest drop in a month since December, as a surge in bond yields knocked the wind out of this year’s rally in equities. The Dow Jones Industrial Average
    DJIA,
    -0.47%

    fell about 157 points, or 0.5%, ending near 33,508, according to preliminary FactSet data. The S&P 500 index
    SPX,
    -0.27%

    shed 0.3% and the Nasdaq Composite index
    COMP,
    +0.14%

    gained 0.1%. September was the worst month for the Dow since February, with its 3.5% loss, while the S&P 500 shed 4.9% and the Nasdaq lost 5.8%, marking their worst months since December 2022, according to Dow Jones Market Data. Yearly core inflation edged higher in August, according to Friday’s release of the latest PCE price index. The focus over the weekend will likely be a U.S. government shutdown. Given the negative backdrop for markets, the S&P 500, Dow and Nasdaq all booked declines in the third quarter.

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  • Risk of government shutdown soars as House Republicans leave town in disarray amid hard-right revolt

    Risk of government shutdown soars as House Republicans leave town in disarray amid hard-right revolt

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    WASHINGTON — With House Speaker Kevin McCarthy’s latest funding plan in ruins and lawmakers leaving town for the weekend, there’s no endgame in sight as hard-right Republicans push closer to a federal government shutdown.

    The White House will tell federal agencies on Friday to prepare for a shutdown, according to an official with the Office of Management and Budget who insisted on anonymity to discuss the upcoming instructions.

    That’s a standard seven days out from a federal disruption.

    ‘This is a whole new concept of individuals who just want to burn the whole place down.’


    — Kevin McCarthy on his intraparty Republican critics

    McCarthy, the Republican speaker whose narrow majority and intraparty detractors meant it took 15 votes in January before he secured the gavel, has repeatedly tried to appease his hard-right flank by agreeing to the steep spending cuts they are demanding to keep government open. But, cheered on by Donald Trump, the former Republican president who is the current frontrunner for the party’s 2024 presidential nomination, the right wingers are flexing their outsize influence.

    In a crushing defeat for McCarthy on Thursday, a handful of Republican hardliners blocked a typically popular defense bill from advancing — the second time this week it was set back, an unheard-of loss for a House speaker.

    Even a stopgap bill to keep government funding past the Sept. 30 deadline, called a continuing resolution, or CR, is a nonstarter for some on the right flank who have essentially seized control of the House.

    Read on: How a partial government shutdown would affect you

    “This is a whole new concept of individuals who just want to burn the whole place down,” McCarthy said after Thursday’s vote, acknowledging he was frustrated. “It doesn’t work.”

    The open revolt was further evidence that McCarthy’s strategy of repeatedly giving in to the conservatives — in evidence as early as January when McCarthy is believed to have made undisclosed concessions to secure holdout GOP votes for his long-desired speakership — is seemingly only emboldening them, allowing them to run roughshod over their own House majority. Their far-right bills have almost no chances in the Senate.

    See: Gaetz threatens to oust McCarthy from House speaker post

    Trump urged the hardliners to hold the line against the higher funding levels McCarthy had agreed to with President Joe Biden earlier this year and to end the federal criminal indictments against him.

    “This is also the last chance to defund these political prosecutions against me and other Patriots,” Trump wrote on social media.

    “They failed on the debt limit, but they must not fail now. Use the power of the purse and defend the Country!” the former president wrote.

    The White House and Democrats, along with some Republicans, warn that a shutdown would be devastating for people who rely on their government for everyday services and would undermine America’s standing in the world.

    Rep. Jamie Raskin, a Maryland Democrat, observed Friday on the MSNBC program “Morning Joe” that investigations into, and prosecutions of, Trump are funded by continuing, indefinite appropriations and thus would be unaffected by a federal government shutdown.

    Also see: Government shutdown: Analysts warn of ‘perhaps a long one lasting into the winter’

    Raskin went on to voice a hope that Republicans ultimately would honor the government-funding agreement McCarthy struck in May with the Biden White House — but conceded Democrats are aware operating in a bipartisan fashion could cost McCarthy the speakership.

    “We need the extreme MAGA Republicans to get their act together,” said House Democratic leader Hakeem Jeffries of New York, referring to Trump’s “Make America Great Again” slogan.

    “End the civil war,” Jeffries urged the Republicans. “Get your act together.”

    But one of Trump’s top allies, Rep. Matt Gaetz, a Florida Republican, who is leading the hard-right flank in the current skirmish, said the House Republicans now have almost no choices left but to spend the time it takes to pass each of the 12 spending bills needed to fund the government — typically a laborious process — even if it means going into a shutdown.

    Or they can join with Democrats to pass a CR, putting McCarthy at risk.

    What Gaetz said he, and several others, would not do is vote for a continuing resolution that fails to slash spending. “I’m giving a eulogy for the CR right now,” Gaetz told reporters after a late afternoon meeting Thursday at the Capitol.

    “I represent Florida’s First Congressional District, where, during the shutdown, tens of thousands of people will go without a paycheck, and so I know the impact of a shutdown,” Gaetz said. “So it may get worse before it gets better, and I have little to offer but blood, sweat, toil and tears, but that may be what it takes.”

    A government closure is increasingly likely as time runs out for Congress to act.

    McCarthy’s bid to move ahead with a traditionally popular defense funding bill as a first step toward keeping the government running was shattered, on a vote of 216-212. Five Republicans refused to vote with the increasingly endangered speaker. A sixth Republican voted no on procedural grounds so the bill could be reconsidered.

    Moving forward with the defense bill was supposed to be a way for McCarthy to build goodwill among the GOP House majority as he tries to pass a temporary measure just to keep government running for another month. It, too, had catered to other hard-right priorities, such as slashing spending by 8% from many services and earmarking further funds for security at the U.S.-Mexico border.

    Many on the right flank opposed the deal McCarthy struck with Biden this year over the spending levels and are trying to dismantle it now. They want to see progress on the individual appropriations bills that would fund the various federal departments at the lower levels these lawmakers are demanding.

    From the archives (May 2023): How Joe Biden and Kevin McCarthy got to yes on their debt-ceiling compromise

    The morning test vote on Thursday shattered a McCarthy strategy that had emerged just the night before. Republicans had appeared on track, in a tight roll call, to advancing the measure. Then the Democrats who had not yet voted began rushing into the chamber.

    New York Rep. Alexandria Ocasio-Cortez and fellow Democrats yelled out to hold open the vote. She was a “no.” A few others came in behind her and tipped the tally toward defeat.

    The Democrats oppose the military bill on many fronts, including Republican provisions that would gut diversity programs at the Pentagon.

    As passage appeared doomed, attention turned to the five Republican holdouts to switch their votes.

    GOP leaders spent more than an hour on the floor trying to recruit one of them, Rep. Dan Bishop of North Carolina, to vote “yes.”

    “Every time there’s the slightest relief of the pressure, the movement goes away from completing the work,” Bishop said.

    When asked what it would take to gain his vote, Bishop said, “I think a schedule of appropriations bills over Kevin McCarthy signature would be meaningful to you, to me.”

    Others were dug in, including some who had supported advancing the defense bill just two days ago when it first failed.

    Rep. Marjorie Taylor Greene, a Georgia Republican and a clamorous opponent of more aid for Ukraine in its defense against the unprovoked Russian invasion, said she voted against the defense bill this time because her party’s leadership refused to separate out war money.

    Her stand came as Ukraine’s president, Volodymyr Zelensky, was at the Capitol during a high-profile visit to Washington.

    McCarthy had pledged to keep House lawmakers in session this weekend for as long as it took to finish their work. But they were sent home and told they could be called back on ample notice.

    Many Republicans were starting to speak up more forcefully against their hard-right colleagues.

    Mike Lawler, who represents a swing district in New York carried handily by Joe Biden in 2020, said he would not “be party to a shutdown.”

    “There needs to be a realization that you’re not going to get everything you want,” he said. “Just throwing a temper tantrum and stomping your feet — frankly, not only is it wrong — it’s just pathetic.”

    Lawler had said in an interview with CNN earlier in the week that barreling toward a shutdown was not Republican conservatism but “stupidity.”

    MarketWatch contributed.

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  • Instacart stock indicated to soar 30% at its open

    Instacart stock indicated to soar 30% at its open

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    Shares of Instacart
    CART,

    are set to receive a warm reception in their Wall Street debut, as early indications are for the grocery delivery app’s stock to open about 30% above where the initial public offering priced. While the stock isn’t expected to trade for a while, perhaps hours, the first indication from the Nasdaq was for the first trade to be around $39.00, while the IPO priced at $30 a share, according to FactSet data. At that price, the company, which is officially named Maplebear Inc. and doing business as Instacart, would be valued at about $13.2 billion, based on 338.8 million common shares outstanding (as-converted, fully diluted). In last week’s high-profile IPO of semiconductor-design company Arm Holdings PLC, the stock’s
    ARM,
    -4.59%

    first trade was 10% above the IPO price, but it closed 24.7% above the IPO price on the first day.

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  • Instacart prices IPO at $30 a share, at upper end of expected range

    Instacart prices IPO at $30 a share, at upper end of expected range

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    The grocery-delivery app Instacart on Monday priced its IPO at $30 a share, at the upper end of its expected range, raising $660 million with a fully-diluted valuation of around $10 billion after backing away from a stock-market debut last year.

    The company said it plans to begin trading on the Nasdaq Global Select Market on Tuesday under the ticker symbol “CART.” It will offer 22 million shares in the IPO. On Friday, Instacart had said it expected to price the offering at between $28 and $30 a share.

    Goldman Sachs and J.P. Morgan are acting as lead book-running managers for the offering. Instacart said it also granted the underwriters a 30-day option to purchase up to an extra 3.3 million shares at the IPO price. The offering is expected to close on Thursday.

    The debut would come amid what appears to be a thaw in the IPO market, following a year of concerns about inflation and the broader economy. But the public debut of chip designerArm Holdings
    ARM,
    -4.53%

    last week made big waves. The digital-marketing platform Klaviyo is set to debut this week as well.

    Instacart’s valuation in 2021 stood at $39 billion. Last year, as pandemic-era digital demand fizzled, the company cut its valuation multiple times, but raised it this year, according to The Information.

    Instacart, in its IPO filing, said the way people shop for groceries is undergoing a “massive digital transformation.” Evercore analysts have said the company controls around a fifth of the U.S. online grocery-delivery market.

    But the company faces steep competition — from the likes of Walmart Inc.
    WMT,
    -0.74%
    ,
    Amazon.com Inc.
    AMZN,
    -0.29%

    and DoorDash Inc.
    DASH,
    -0.01%

    — and relies on a handful of grocery chains for a big chunk of its demand. And delivery fees on top of higher-priced groceries remain threats to demand.

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  • Bootstrapping vs. Venture Capital — What’s Best for Your Business? | Entrepreneur

    Bootstrapping vs. Venture Capital — What’s Best for Your Business? | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Every person who’s founded a business knows that financing your idea is one of the hardest but most important early steps. In fact, creating a stable financial nest for your new company might be the difference between a company that thrives and one that fizzles out.

    There are two primary methods of financing: looking for venture capital and bootstrapping. Choosing which financing method you go with is a crucial decision that may have long-term impacts on your business.

    So, how should you decide which method to pursue?

    Related: 9 Advantages Of Bootstrapping Your Company

    Bootstrapping

    Bootstrapping is the process of starting a business with no outside funding. This is an achievable way to start your company because you can focus on building your team and product exactly how you want. Further, bootstrapping typically means you’ll reach an initially smaller audience, so you’ll have time to get feedback from early users before launching to a wide audience.

    The advantages of bootstrapping include a bigger focus on customers. Because you don’t have a huge nest egg, pleasing your early customers is your lifeline. So, you’ll focus more on user retention and building long-term customer relationships.

    Disadvantages of this creative financing option include slower growth. Because you’re funding yourself, you’ll have less access to expensive technology that affords fast production processes. Further, you’ll have to rely more on personal savings or debt in order to jumpstart your business.

    Seeking venture capital

    On the other hand, you may opt to seek venture capital. Venture capital is a type of financing through private equity. In other words, investors put money into your business, betting that it will become a successful venture. By going with venture capital, your business will grow faster, resulting in a quick return on investment.

    The benefits of venture capital include less personal risk. You’re not pouring your own money into the business, so you don’t risk losing your own money. Additionally, getting a loan from a credible investor will increase your own credibility.

    However, drawbacks of venture capital include the expectation to grow quickly and the initial reduction of your stakes as an owner of the business.

    Related: 6 Important Factors Venture Capitalists Consider Before Investing

    Choosing the best financing option

    The decision between bootstrapping and looking for venture capital depends largely on the state of growth that you’re in. In fact, many great investors often want to see evidence that you’ve successfully bootstrapped for the first stage of your business.

    But why? Because successful bootstrapping serves as evidence that you’re smart and hardworking — and that you’ve got a good idea.

    However, say your business is in an industry that requires a large amount of upfront research, such as the biomedical or electric car companies. In this case, you’ll need a huge amount of capital, which will likely require raising money from outside investors. But if you can bootstrap the formation of the company and proof of concept, you’ll face less dilution in the venture capital process as the founder. Further, it means you can embrace a lean-and-mean, efficient philosophy toward operations.

    In this case, you prove that you’re efficient when it comes to using capital. It also proves you’re more resourceful than some business owners and entrepreneurs. Further, it shows that you can be innovative out of necessity.

    So, if you’re creating a good product and your business is successful, you’ll begin to gain traction in your industry. Then, there will inevitably come a time when you start to outgrow the resources that are available to you on your balance sheet. As a result, your own bootstrapping funds will cease to be able to fund your business’s growth as aggressively as necessary.

    When this happens, it’s likely best to raise outside capital. In fact, this is often the best way to take advantage of the opportunity you’ve created for yourself. In this case, you should have an easier time finding funding.

    Why seeking growth capital is easier than seeking startup funding

    Historically, it’s easier to find growth capital than it is to seek startup funding. So, because you’ve bootstrapped for a period of time, you’ve given yourself the opportunity to prove the viability of your idea. As a result, seeking venture capital will be easier as you can approach investors with successful results about your company.

    At the end of the day, how you fund your business is up to you. Your own evaluation of the state of your business, the viability of your product and the potential of your business to generate profit should help you determine which avenue is best for you. Bootstrapping and seeking venture capital both have significant benefits and drawbacks. So, you should evaluate where you are in your business when choosing between the two.

    Most likely, the best option is a combination of the two. Consider the stage that your business is in when deciding whether to choose bootstrapping or seeking venture capital in order to guarantee the highest level of success.

    Related: How I Bootstrapped to $100 Million Without Venture Capital Funding

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    Cyrus Claffey

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  • Nasdaq ends 1% down, leading stocks lower as tech shares slump

    Nasdaq ends 1% down, leading stocks lower as tech shares slump

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    U.S. stocks closed lower on Tuesday, with the Nasdaq Composite leading the way down, as Apple’s unveiling of its new iPhone and watch failed to boost appetite for equities. The Dow Jones Industrial Average
    DJIA,
    -0.05%

    shed about 16 points, or about 0.1%, to end near 34,647, while the S&P 500 index
    SPX,
    -0.57%

    closed 0.6% lower and the Nasdaq Composite Index
    COMP,
    -1.04%

    slumped 1%, according to preliminary FactSet data. That was the biggest daily percentage drop in about a week for the Nasdaq. Shares of Apple Inc.
    AAPL,
    -1.71%

    were a focus Tuesday as it rolled out a lineup of new consumer products, including its iPhone Pro Max, which will now start at $1,199 instead of $1,099, while its Pro model’s price stays the same. Investors also remain focused on the inflation data, including the release on Wednesday of the consumer-price index for August, before the U.S. stock market’s open. Apple shares fell 1.9% on Tuesday. Climbing bond yields can pressure high-growth stocks as borrowing costs rise. The benchmark 10-year Treasury yield
    TMUBMUSD10Y,
    4.297%

    edged down 2.4 basis points to 4.263% Tuesday, but was still near its highest level of the year.

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  • Canopy Growth stock soars on heavy volume again, amid cannabis investor optimism over possible favorable legislation

    Canopy Growth stock soars on heavy volume again, amid cannabis investor optimism over possible favorable legislation

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    Shares of Canopy Growth Corp.
    CGC,
    +22.61%

    shot up 21.7% toward a near four-month high in very active afternoon trading, putting them on track for the fifth double-digit percentage gain in seven sessions. The stock has rocketed 130% over the past seven session. Trading volume was 107.7 million shares as of Friday afternoon, to mark the fourth 100+-million-share volume day in the past six sessions, while the average volume over the past 30 days was about 36.3 million shares. The stock’s surge comes as Senate Banking Committee chair Sherrod Brown said Wednesday that there is “an agreement imminent” on the SAFE Banking Act, according to a Politico report, which could make it easier for the financial industry to work with cannabis companies. Among other cannabis stocks, shares of Tilray Brands Inc.
    TLRY,
    +2.03%

    gained 2.4%, of Cronos Group Inc. climbed 6.0% and of Aurora Cannabis Inc.
    ACB,
    +14.75%

    jumped 12.5%. The AdvisorShares Pure US Cannabis ETF
    MSOS,
    +3.88%

    rose 7.5% on volume of 13.9 million shares, compared with the full-day average of about 5.6 million shares, while the S&P 500
    SPX,
    +0.14%

    slipped 0.1%. The cannabis ETF has soared 77% over the past seven sessions.

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  • What’s missing for investors in new $60 billion corporate borrowing blitz

    What’s missing for investors in new $60 billion corporate borrowing blitz

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    Another big corporate borrowing blitz to kick off September has gotten under way, but this one isn’t looking like the rest.

    Instead, the flurry of new bond issues shows how the Federal Reserve’s higher interest rate environment has begun to seep in a year later, by making major companies far more hesitant to tap credit for longer stretches.

    “The…

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  • AMC stock tumbles after filing prospectus supplement for the sale of up to 40 million shares

    AMC stock tumbles after filing prospectus supplement for the sale of up to 40 million shares

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    Shares of AMC Entertainment Holdings Inc. AMC tumbled 13.9% toward the lowest price seen since January 2021 after the movie theater operator disclosed an equity distribution agreement in which the company could sell up to 40 million common shares. That would represent up to 7.7% of the common shares outstanding. The shares sales, if any, may be “at the market offerings” or could be to sales agents through block trades. The stock, which underwent a 1-for-10 reverse stock split on Aug. 24, was on track to open at the lowest price seen during regular-session hours since Jan. 15, 2021. It has tumbled 66.7% over the past three…

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  • How the U.S. housing market got stuck in the ’80s

    How the U.S. housing market got stuck in the ’80s

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    The Federal Reserve’s inflation fight has been particularly brutal for anyone not already a U.S. homeowner before interest rates and mortgage rates rose to 15-year highs.

    With mortgage rates around 7.2% to kick off the post–Labor Day period, the difference between the rates on a new 30-year home loan and on all outstanding U.S. mortgage debt (see chart) has not been so wide since the 1980s.

    It’s the 1980s again in the U.S. housing market.


    Glenmede, FactSet

    “Generally, climbing interest rates curb demand and cause housing prices to fall,” Glenmede’s investment strategy team wrote, in a Tuesday client note, but not this time.

    Instead, U.S. homes remain in critically low supply after more than a decade of underbuilding, and with most homeowners who already refinanced at low pre-pandemic rates being “reluctant to leave their homes,” wrote Jason Pride, chief of investment strategy and research, and his Glenmede team.

    Also, while homes prices have come off their prepandemic highs, they still were fetching $416,000 in the second quarter, based on median sales prices, above $358,700 in the fourth quarter of 2020, according to U.S. Census and HUD data.

    “Until the supply gap is filled by new construction, home prices and building activity are unlikely to decline as meaningfully as they normally would given the headwind from rising rates,” the Glenmede team said.

    Read: Housing affordability is now at its worst level since 1984, Black Knight says

    The Glenmede team, however, does expect more pressure on consumers in the coming months, particularly as student-loan payments resume in October and if the Fed keeps interest rates high for a while, as increasingly expected. The benchmark 10-year Treasury yield
    BX:TMUBMUSD10Y,
    which underpins the U.S. economy, was back on the climb at 4.26% Tuesday.

    Meanwhile, shares of home-vacation rental platform Airbnb Inc.
    ABNB,
    +7.23%

    rose 7.2% on Tuesday, after the Labor Day weekend, and 66.4% higher on the year so far, according to FactSet.

    Don’t miss: New York City cracks down on Airbnb and other short-term-rental listings

    Shares of Invitation Homes Inc.
    INVH,
    -0.91%
    ,
    which grew out of the last decade’s home-loan foreclosure crisis to become a single-family-rental giant, were up 14.3% on the year, according to FactSet.

    Dallas Tanner, CEO of Invitation Homes, said he expected “the rising costs and the burden of homeownership” to continue to benefit his company, in a July earnings call. The company recently bought a portfolio of about 1,900 homes and has been snapping up newly constructed homes. Companies can borrow on Wall Street at much lower rates than individuals.

    Stocks closed lower Tuesday, with the Dow Jones Industrial Average
    DJIA
    off 0.5%, and the S&P 500 index
    SPX
    0.4% lower and the Nasdaq Composite Index
    COMP
    down 0.1%, according to FactSet.

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  • Manchester United’s stock suffers record selloff after report that sale of club is off

    Manchester United’s stock suffers record selloff after report that sale of club is off

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    The U.S.-listed shares of Manchester United PLC suffered a record beating Tuesday, after a report that the iconic English football club was set to be taken off the market.

    Manchester United MANU UK:MNL fell 18.2% on the day to log its biggest one-day selloff since the company went public in August 2012. The previous record drop was 13.8% on March 12, 2020, at the outset of the coronavirus pandemic.

    The…

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  • Dow closes down 200 points as bond yields, oil prices jump

    Dow closes down 200 points as bond yields, oil prices jump

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    U.S. stocks closed lower Tuesday after the long Labor Day weekend, as bond yields and oil prices climbed. The Dow Jones Industrial Average DJIA shed about 195 points, or 0.6%, ending near 34,642, according to preliminary FactSet data. The S&P 500 index SPX dropped about 0.4% and the Nasdaq Composite Index COMP fell 0.1%. Investors returned from the long weekend in a less bullish mood on weaker economic data from China and Europe, but also with more clouds on the horizon in oil markets. Oil prices CL00 closed at the highest level since November on Tuesday, after Saudi Arabia and Russia opted to extend oil supply production…

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  • Robinhood buys back shares from the U.S. Marshal Service, originally owned by FTX founder Sam Bankman-Fried

    Robinhood buys back shares from the U.S. Marshal Service, originally owned by FTX founder Sam Bankman-Fried

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    Shares of Robinhood Markets Inc.
    HOOD,
    +2.62%

    galloped 2.6% higher Friday, after the trading app disclosed that it bought back 55.3 million of its shares from the U.S. Marshal Service. The company said it paid $605.7 million for the shares, which represents 6.1% of the company’s market capitalization of $9.93 billion at Thursday’s close. The shares were originally acquired through Emergent Fidelity Technologies Ltd. by Sam Bankman-Fried, founder of failed cryptocurrency exchange FTX that collapsed last year. The shares were seized and transferred to the custody of the U.S. Robinhood’s stock has rallied 20.7% over the past three months through Thursday, while the S&P 500
    SPX,
    +0.24%

    has gained 6.8%.

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  • Labor Day is just a ‘milestone’ in the marathon to get workers back to the office

    Labor Day is just a ‘milestone’ in the marathon to get workers back to the office

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    The U.S. Labor Day holiday will mark another milestone in the marathon to bring workers back to the office, but it won’t be a quick fix for landlords, according to Thomas LaSalvia, head of commercial real estate economics at Moody’s Analytics.

    Employers from Facebook parent Meta
    META,
    +0.27%

    to Goldman Sachs
    GS,
    -0.26%

    recently laid out mandates for staff to return to the office more frequently, starting this fall, including the big one — the federal government.

    “A lot of companies are saying that after Labor Day, ‘We expect more out of you,” LaSalvia said, referring to days in the office. Still, office attendance, he argues, likely only stages a fuller comeback if a job or promotion is on the line.

    Amazon.com Inc.’s
    AMZN,
    +2.18%

    Chief Executive Andy Jassy has been trying to drive home the point by warning staff to return at least three days a week, or face the consequences.

    That could prove difficult, with Friday’s U.S. jobs report for August expected to show U.S. unemployment at a scant 3.5%, near the lowest levels since the late 1960s, even if hiring has been slowing. The labor market, so far, appears unfazed by the Federal Reserve’s benchmark rate reaching a 22-year high.

    It has been a different story for landlords facing a roughly 19% vacancy rate nationally and piles of debt coming due, especially for owners of older Class B and C office buildings with a bleak outlook or properties in cities with wobbling business centers.

    See: San Francisco’s office market erases all gains since 2017 as prices sag nationally

    As with shopping malls, LaSalvia said it’s largely a problem of oversupply, with many office properties at risk of becoming obsolete as tenants flock to better buildings and locations staging a rebirth. The trend can be traced in leasing data since 2021, with Class A properties in central business districts (blue line) showing a big advantage over less desirable buildings in the heart of cities (orange line).

    Return to office isn’t going to save the entire office property market


    Moody’s Analytics

    “Little by little, we are finding the office isn’t dead,” LaSalvia said, but he also sees more promise in neighborhoods with a new purpose, those catering to hybrid work and communities that bring people together.

    Another way to look at the trend is through rents. Manhattan’s Penn Station submarket, with its estimated $13 billion overhaul and neighboring Hudson Yards development, has seen asking rents jump 32% to $74.87 a square foot in the second quarter since the fourth quarter of 2019, according to Moody’s Analytics. That compares with a 2% bump in asking rents in downtown New York City to $61.39 a square foot for the same period.

    The push for a return to the office also doesn’t mean a repeat of prepandemic ways. Goldman Sachs analysts estimate that part-time remote work in the U.S. has stabilized around 20%-25%, in a late August report, but that’s still up from 2.6% before the 2020 lockdowns.

    Furthermore, the persistence of remote work will likely add another 171 million square feet of vacant U.S. office space through 2029, a period that also will see tenants’ long-term leases expire and many companies opting for less space. The additional vacancies would roughly translate to 57% of Los Angeles roughly 300 million square feet of office space sitting empty.

    “The fundamental reason why we had offices in the first place have not completely disintegrated,” LaSalvia said. “But for some of those Class B and C offices, the writing was on the wall before the pandemic.”

    U.S. stocks were mixed Thursday, but headed for losses in a tough August for stocks, with the S&P 500 index
    SPX
    off about 1.5% for the month, the Dow Jones Industrial Average
    DJIA
    2.1% lower and the Nasdaq Composite
    COMP
    down 2% in August, according to FactSet.

    Related: Some employers mandate etiquette classes as returning office workers walk barefoot, burp loudly and microwave fish

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  • Safe States Alliance Strengthens Public Health Infrastructure With New CDC Award

    Safe States Alliance Strengthens Public Health Infrastructure With New CDC Award

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    The CDC has awarded a five-year cooperative agreement to the Safe States Alliance to strengthen injury and violence prevention programs at State and Local Health Departments

    Safe States Alliance is proud to announce that it has been awarded the new “Creating Safer States by Advancing Health Equity, Injury, and Violence Prevention” award from the Centers for Disease Control and Prevention (CDC), funded by its National Center for Injury Prevention and Control.

    This significant five-year cooperative agreement aims to bolster the injury and violence prevention (IVP) infrastructure and capacity of state health departments (SHDs) and local health departments (LHDs), by providing health equity and IVP technical assistance, training tools, and other essential resources.

    According to Richard Hamburg, executive director for Safe States, “This new cooperative agreement builds upon decades of prior federally supported work that has helped position Safe States to play a central role in developing and supporting the strong public health infrastructure required to effectively prevent injuries and violence and create safer, healthier communities.” 

    Hamburg further stated: “Injuries and violence are inequitably distributed across communities, primarily and adversely impacting vulnerable communities that have been historically marginalized. A central challenge to our organization is to elevate the field of IVP through an anti-racism and health equity lens. This award will allow us to continue to address or improve the factors that persist in economically and socially marginalized populations causing injury and violence-related health inequities.

    Through this renewed collaboration, Safe States Alliance solidifies its commitment to providing vital resources to public health departments nationwide. This award will enable the organization to offer technical support and training to help SHDs and LHDs adapt and improve their approaches to health equity and injury and violence prevention.

    Safe States Alliance is thrilled to continue supporting and strengthening public health infrastructure to prevent injuries and violence. The organization views this award as a launching pad for opportunities to better serve communities and create a ripple effect of positive change across the nation.

    Formed in 1993, the Safe States Alliance is the only national non-profit organization and professional association comprised of public health injury and violence prevention professionals representing all U.S. states and territories. Safe States’ mission is to strengthen the practice of injury and violence prevention and be the recognized leader and driving force in understanding and preventing injuries and violence, a leading cause of death for ages 1-64 in the U.S.

    Source: Safe States Alliance

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  • Stocks end mostly lower, Nasdaq books biggest 3-week drop since December

    Stocks end mostly lower, Nasdaq books biggest 3-week drop since December

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    Stocks closed mostly lower Friday, capping off a bruising week of losses as Treasury yields jumped and China’s mounting property woes gripped investors. The Dow Jones Industrial Average
    DJIA,
    +0.07%

    rose about 27 points, or 0.1%, ending near 34,501, according to preliminary FactSet data. The S&P 500 index
    SPX,
    -0.01%

    was nearly flat at 4,370 and the Nasdaq Composite Index
    COMP,
    -0.20%

    shed 0.2%, despite briefly turning positive late in the session. It still was a tough week for equities, with the Dow booking a 2.2% loss, the S&P 500 index a 2.1% decline and the Nasdaq a 2.6%. The Nasdaq also posted its biggest 3-week decline since December 2022, according to Dow Jones Market Data. Yields on the 10-year Treasury rose for a 5th week in the row, with the benchmark
    TMUBMUSD10Y,
    4.252%

    rate briefly touching its highest level since November 2007, before settling back at 4.251% on Friday. China Evergrande’s
    EGRNF,

    Chapter 15 bankruptcy filing in New York late Thursday kept focus on the wobbling property market in the world’s second-largest economy. Earlier in the week, Country Garden Group missed a dollar-denominated debt payment. Next week investors will be focused on Federal Reserve Chairman Jerome Powell’s speech on Friday at the Jackson Hole economic summit for hints to whether the central bank is likely done hiking rates in this cycle. The Fed’s policy rate sits at its highest level in 22 years.

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  • Stocks post back-to-back loss after Fed minutes point to lingering inflation and rate risks

    Stocks post back-to-back loss after Fed minutes point to lingering inflation and rate risks

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    U.S. stocks posted back-to-back losses Wednesday after Federal Reserve minutes of its July meetings showed concerns about inflation revving back up. The Dow Jones Industrial Average DJIA fell about 180 points, or 0.5%, ending near 34,765, according to preliminary FactSet data. The S&P 500 index SPX gave up 0.8% and the Nasdaq Composite Index COMP closed 1.2% lower. All three benchmarks booked back-to-back loses, while the S&P 500 ending at its lowest level in more than a month. Minutes of the Fed’s July 25-26 meeting said “most participants continue to see significant upside risks to inflation, which could require further…

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