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Tag: industrial news

  • Meta’s Twitter-rival Threads: How to sign up, what it costs and what we know so far

    Meta’s Twitter-rival Threads: How to sign up, what it costs and what we know so far

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    Meta’s Twitter-rival Threads launches tomorrow: What we know so far

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  • Toyota’s stock rises after U.S. sales rise 15%, and EV sales were 26% of total sales

    Toyota’s stock rises after U.S. sales rise 15%, and EV sales were 26% of total sales

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    The U.S.-listed shares of Toyota Motor Corp. TM JP:7203 rose 0.8% in morning trading Wednesday, said U.S. sales in June rose 14.9% from a year ago. The Japan-based automaker’s North America division (TMNA) reported it sold 195,448 vehicles in the U.S. in June, on a volume and daily-selling rate (DSR) versus June 2022, as Toyota-brand sales rose 1.4% to 168,680 vehicles and Lexus-brand sales jumped 18.1% to 26,768 vehicles. Sales of electrified vehicles total 51,535, or 26.4% of total monthly sales. For the first half of 2023, U.S. sales fell 0.7% to 1,038,520 vehicles, with electrified vehicle sales representing 26.0%…

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  • UPS’s stock snaps win streak after Teamsters say talks collapse due to ‘unacceptable’ contract offer

    UPS’s stock snaps win streak after Teamsters say talks collapse due to ‘unacceptable’ contract offer

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    Shares of United Parcel Service Inc. dropped for the first time in seven sessions Wednesday, after the union representing more than 340,000 employees said the delivery giant “walked away” from the bargaining table after its labor contract offer was unanimously rejected.

    The International Brotherhood of Teamsters said, following “marathon” negotiations, that UPS UPS refused to give the union a “last, best and final offer,” as the company said it had nothing more to give.

    “This…

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  • Americans are now being advised to reconsider travel to China

    Americans are now being advised to reconsider travel to China

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    BEIJING (AP) — The U.S. recommended Americans reconsider traveling to China because of arbitrary law enforcement and exit bans and the risk of wrongful detentions.

    No specific cases were cited, but the advisory came after a 78-year-old U.S. citizen was sentenced to life in prison on spying charges in May.

    It also followed the passage last week of a sweeping Foreign Relations Law that threatens countermeasures against those seen as harming China’s interests.

    China also recently passed a broadly written counterespionage law that has sent a chill through the foreign business community, with offices being raided, as well as a law to sanction foreign critics.

    “The People’s Republic of China (PRC) government arbitrarily enforces local laws, including issuing exit bans on U.S. citizens and citizens of other countries, without fair and transparent process under the law,” the U.S. advisory said.

    “U.S. citizens traveling or residing in the PRC may be detained without access to U.S. consular services or information about their alleged crime,” it warned.

    Similar U.S. advisories issued for the semiautonomous Chinese regions of Hong Kong and Macao.

    The advisory also said that Chinese authorities “appear to have broad discretion to deem a wide range of documents, data, statistics, or materials as state secrets and to detain and prosecute foreign nationals for alleged espionage.”

    It listed a wide range of potential offenses from taking part in demonstrations to sending electronic messages critical of Chinese policies or even simply conducting research into areas deemed sensitive.

    Exit bans could be used to compel individuals to participate in Chinese government investigations, pressure family members to return from abroad, resolve civil disputes in favor of Chinese citizens and “gain bargaining leverage over foreign governments,” the advisory said.

    Similar advisories were issued for the semiautonomous Chinese regions of Hong Kong and Macao. They were dated Friday and emailed to journalists on Monday.

    The U.S. had issued similar advisories to its citizens in the past, but those in recent years had mainly warned of the dangers of being caught in strict and lengthy lockdowns while China closed its borders for three years under its draconian “zero-COVID” policy.

    China generally responds angrily to what it considers U.S. efforts to impugn its authoritarian Communist Party–led system. It has issued its own travel advisories concerning the U.S., warning of the dangers of crime, anti-Asian discrimination and the high cost of emergency medical assistance.

    From the archives (June 2020): Hong Kong bans insults to China’s national anthem

    Also (August 2021): Biden signs order to allow thousands of Hong Kong residents to stay in the U.S. amid Beijing’s crackdown

    China had no immediate response to the travel advisory on Monday.

    Details of the accusations against the accused spy John Shing-Wan Leung are not available, given China’s authoritarian political system and the ruling Communist Party’s absolute control over legal matters. Leung, who also holds permanent residency in Hong Kong, was detained in the southeastern city of Suzhou on April 15, 2021 — a time when China had closed its borders and tightly restricted movement of people domestically to control the spread of COVID-19.

    The warnings come as U.S.-China relations are at their lowest in years, over trade, technology, Taiwan and human rights, although the sides are taking some steps to improve the situation. U.S. Secretary of State Antony Blinken made a long-delayed visit to Beijing last week and Treasury Secretary Janet Yellen is making a much-anticipated trip to Beijing this week. China also recently appointed a new ambassador to Washington, who presented his credentials in a meeting with President Joe Biden at the White House.

    Other incidents, however, have also pointed to the testiness in the relationship. China formally protested last month after Biden called Chinese leader Xi Jinping a “dictator,” days after Blinken’s visit.

    From the archives (February 2021): Biden says China faces ‘extreme competition’ from U.S. under his administration

    Also see (June 2020): Bolton book adds urgency to Trump bid to depict himself as a China hawk and to paint Biden as a Beijing apologist

    Capitol Report (June 2020): Trump asked China’s Xi to buy U.S. farm products to help him win re-election, Bolton book says

    Biden brushed off the protest, saying his words would have no negative impact on U.S.-China relations and that he still expects to meet with Xi sometime soon. Biden has also drawn rebukes from Beijing by explicitly saying the U.S. would defend self-governing Taiwan if China, which claims the island as its own territory, were to attack it.

    The White House’s John Kirby discusses President Joe Biden’s priorities when it comes to Ukraine, China and other national-security matters. Kirby, who will be interviewed by MarketWatch’s Victor Reklaitis, is the strategic-communications coordinator for Biden’s National Security Council.

    Biden said his blunt statements regarding China are “just not something I’m going to change very much.”

    See: Biden says he plans to meet with China’s Xi even after calling him a dictator

    Also: ‘Extremely absurd and irresponsible’: China fires back after Biden labels Xi a dictator

    From the archives (March 2023): Xi says U.S. is trying to hinder China in its quest for global influence

    The administration is also under pressure from both parties to take a tough line on China, making it one of the few issues on which most Democrats and Republicans agree.

    Along with several detained Americans, two Chinese-Australians, Cheng Lei, who formerly worked for China’s state broadcaster, and writer Yang Jun, have been held since 2020 and 2019, respectively, without word on their sentencing.

    Perhaps the most notorious case of arbitrary detention involved two Canadians, Michael Kovrig and Michael Spavor, who were detained in China in 2018, shortly after Canada arrested Meng Wanzhou, Huawei Technologies’ chief financial officer and the daughter of the tech powerhouse’s founder, on a U.S. extradition request.

    They were charged with national-security crimes that were never explained and released three years later after the U.S. settled fraud charges against Meng. Many countries labeled China’s action “hostage politics.”

    Read on (May 2023): Biden national-security adviser tells Chinese diplomat that U.S. seeks to move beyond spy-balloon episode

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  • Yahoo CEO says the company plans a return to the public markets

    Yahoo CEO says the company plans a return to the public markets

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    Yahoo, an early trailblazer of the Internet boom, is “very profitable,” and ready to return to public markets via an initial public offering.

    That’s according to Chief Executive Jim Lanzone, who made the comment in an interview with the Financial Times published Tuesday. Yahoo soared to prominence in the 1990s, rising in the public consciousness alongside its share price — under the ticker symbol “YHOO” — during the dot-com boom.

    Apollo Funds purchased the Yahoo business from Verizon Communications Inc. 
    VZ,
    +0.24%

     in 2021.

    IPO Report: Like choosy shoppers at a retail store, IPO investors are demanding discounts and displaying price sensitivity

    The web services provider, which competes with the likes of Google parent Alphabet Inc. 
    GOOGL,
    +0.17%

    and Facebook parent Meta Platforms Inc. 
    META,
    -0.33%
    ,
    said earlier this year that more than 20% of its workforce would be laid off. At the time, Lanzone reportedly said that the cuts would be made in an unprofitable area of its business but that they would be “tremendously beneficial” to the company overall.

    “Whether it’s finance, or sports or news, that’s still what we do, and why we’re No. 1, or No. 2, in all these important categories all these years later,” Lanzone reportedly told the FT. “While the company has had struggles [at] different points in time, we’re still huge in traffic, and we have our best days ahead of us productwise.”

    He said Yahoo would be aggressively looking at the chance to build businesses in related sectors via M&A — it recently bought Wagr, a sports-betting app. While Yahoo is still “too small” to take on Google and Microsoft’s
    MSFT,
    -0.75%

    search engine Bing, Lanzone said he’s optimistic, and also sees AI offering up new opportunities for the company.

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  • Sainsbury’s Backs FY24 View

    Sainsbury’s Backs FY24 View

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    J. Sainsbury sees same-store sales rise 9.8% in first quarter, backs 2024 view

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  • Meta’s Twitter killer, Threads, is reportedly coming Thursday

    Meta’s Twitter killer, Threads, is reportedly coming Thursday

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    Meta Platforms Inc.’s answer to Twitter is poised to launch, according to a new report, as Elon Musk’s faltering microblogging app struggles to hold onto advertisers and over the weekend placed restrictions on posts viewed by users.

    The Wall Street Journal reported late Monday that Meta’s
    META,
    -0.33%

    Threads will be released Thursday, and is expected to be built off of Instagram user data, giving it the potential to catch on and grow quickly.

    Bloomberg News also reported it would launch Thursday, citing a listing on Apple Inc.’s
    AAPL,
    -0.78%

    App Store.

    If Threads does launch Thursday, it could come at a perfect time for Meta to capitalize on anger toward Twitter. Late Monday, Twitter announced it was moving its popular TweetDeck viewing tool behind a paywall in 30 days, spurring widespread user outrage.

    Last week, the Threads app briefly appeared on Alphabet Inc.’s
    GOOGL,
    +0.17%

    GOOG,
    -0.34%

    Google Play Store in some regions.

    Threads allows users to port their Instagram username to a new platform that essentially opens direct-message chats on a more public forum. The Facebook parent company has been developing a text-based platform for some time.

    Read more: Musk vs. Zuckerberg: Which tech heavyweight is already winning the Wall Street cage match?

    Twitter, meanwhile, continues to seek ways to stem hemorrhaging advertising under new Chief Executive Linda Yaccarino as it puts a stranglehold on what subscribers can view. In a tweet Saturday, Musk — who acquired Twitter for $44 billion in October — said verified accounts were at one point limited to reading 6,000 posts a day. For unverified accounts, the number was 600 posts a day, while new account could only see 300. That number was later upgraded to 10,000, 1,000 and 500, respectively.

    Animosity between Musk and Meta co-founder and Chief Executive Mark Zuckerberg has been growing as the Twitter-rival app gets closer to market, culminating in Musk’s cage-fight challenge to Zuckerberg last month.

    Mike Murphy contributed to this report.

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  • EV stocks get a broad boost after Tesla, Rivian, Nio report upbeat deliveries data

    EV stocks get a broad boost after Tesla, Rivian, Nio report upbeat deliveries data

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    Shares of electric vehicle makers got a broad boost Monday, after upbeat delivery and production data from a host of companies, including industry leader Tesla Inc. and those based in China.

    The Global X Autonomous and Electric Vehicles exchange-traded fund
    DRIV,
    +1.08%

    jumped as much as 1.7% intraday, before paring gains to close up 1.1%. It has climbed 5.7% amid a five-day win streak. The ETF outperformed the broader stock market by a wide margin, as the S&P 500 index
    SPX,
    +0.12%

    inched up 0.1% and the Nasdaq Composite
    COMP,
    +0.21%

    edged up 0.2%.

    The ETF’s most-active component was Tesla’s stock
    TSLA,
    +6.90%
    ,
    which climbed 6.9% to $279.82, the highest close since Sept. 28, 2022. It has run up 16.1% amid a five-day win streak.

    The rally comes after Tesla revealed over the weekend a blowout deliveries report, in which the EV leader said it delivered a record 466,000 vehicles in the most recent quarter, well above expectations of 449,000.

    The ETF’s second-most active member was Rivian Automotive Inc.’s stock
    RIVN,
    +17.41%
    ,
    which shot up 17.4% to its highest close since Feb. 17, and rocketed 45.4% amid a five-day win streak.

    The company reported second-quarter EV production that was more than triple that of a year ago, and deliveries that nearly tripled.

    Nio Inc.’s U.S.-listed stock
    NIO,
    +3.51%

    rallied 3.5% to $10.03, the first close above the $10 mark since March 31, after the Shanghai-based EV maker reported June deliveries that jumped 74% from May, but were down 17.4% from a year ago.

    Among its China-based peers, the U.S.-listed shares of Xpeng Inc.
    XPEV,
    +4.17%

    advanced 4.2% to the highest close since Sept. 26, 2022, of Li Auto Inc.
    LI,
    +3.42%

    hiked up 3.4% to the highest close since July 21, 2022 and of Boyd Co. Ltd.
    BYDDY,
    +3.07%

    rose 3.1%.

    Elsewhere, Lucid Group Inc. shares
    LCID,
    +7.26%

    charged 7.3% higher to a record sixth-straight gain and the highest close since May 31, as the EV sector’s rally helped offset an effective downgrade at Citi Research.

    Mullen Automotive Inc.’s stock
    MULN,
    -6.31%

    bucked the trend, as it sank 6.3% toward a record low close of 10.1 cents, even after the EV maker reported last week that it recorded revenue for the first time, and that it was in the “best financial position” in its history.

    In an interview on YouTube channel “Financial Journey,” as disclosed on Friday, Mullen Chief Executive Officer David Michery said he doesn’t believe the stock’s price reflects the true value of the company.

    He said he expects manufacturing of the Mullen One class 1 last-mile delivery cargo vans to begin in August with “sellable” vehicles available in September.

    For the Mullen Three class 3 trucks, with a gross vehicle Weight Rating (GVWR) of 11,000 pounds, Michery said manufacturing will start “right around the corner” in July, with sellable vehicles in August and September.

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  • Driverless cars are driving San Francisco crazy — ‘They are not ready for prime time’

    Driverless cars are driving San Francisco crazy — ‘They are not ready for prime time’

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    A street was blocked for road work in my San Francisco neighborhood this month, with a worker holding a large STOP sign to direct traffic.

    A white car did as instructed, stopping in the middle of the intersection and blocking traffic at the four way intersection. No one was in the driver’s seat and there were no passengers, nor any training drivers — it was a Cruise driverless car, one of many that have flooded streets in the city in the last two years.

    The public works employee holding the sign was flummoxed as how to get the car to move away. After several minutes, the car slowly backed its way out and crossed the street, but ended up on the wrong side. After another 10 minutes, it managed to pull itself together, get in the right lane and drive down the hill.

    Most San Francisco residents can tell a similar story. The growing driverless car fleets in San Francisco are both a fascinating glimpse of science fiction come to life and a scary example of how Big Tech and auto companies have run roughshod over a congested city, with technology that really isn’t ready yet and little regulation to keep it at bay.

    Now, the problem is coming to a head. San Francisco public officials have had enough, and are speaking out about safety threats ahead of a hearing next month that could let companies expand into larger fleets of fare-generating robotaxis.

    “They are not ready for prime time,” San Francisco Fire Chief Jeanine Nicholson told MarketWatch in an interview.

    “They have run over our hoses, they have blocked our fire engines from going on calls, they have just blocked our vehicles from getting down streets where there is a possible fire. They have just done a multitude of things. We had to break the window of one once because we could not get its attention,” Nicholson said.

    While the average citizen can laugh at the stalled cars in city streets, the vehicles represent a major impediment for first responders. The San Francisco fire chief believes they put the city’s firefighters and residents at risk.

    “Response time matters — a fire can double in size in a minute,” she said.

    Aaron Peskin, president of the city’s Board of Supervisors, said there have been 66 incidents in which driverless cars interfered with first responders this year. But the city has little control over the cars operated by Cruise, a unit of General Motors Co.
    GM,
    +1.04%
    ,
    and Waymo LLC, a subsidiary of Google parent Alphabet Inc.
    GOOG,
    -0.34%

    GOOGL,
    +0.17%

    Both companies already have Department of Motor Vehicle permits to deploy a driverless passenger taxi service, a process Peskin described as “Kafka-esque.”

    “You have this thing where the DMV colluded with the industry to redact information that otherwise was public,” he said, referring to the result of a lawsuit Waymo filed last year against the DMV to keep its crash data private, arguing that it held trade secrets. “The funny thing is it’s not like San Francisco is trying to say ‘let’s put the genie back in the bottle.’ We are trying to ensure that our streets are safe. They have become too congested.”

    Both companies are seeking to expand their operations into fare-generating robotaxis in San Francisco, leading to a crucial meeting of California’s Public Utility Commission now slated for July. Waymo is seeking to begin passenger robo-taxi service in the city, while Cruise is seeking to expand its passenger robo-taxi service to the entire city, 24 hours a day, and remove exclusions of steep hills and roundabouts, deploying 100 vehicles. Helpfully for the companies, one PUC commissioner appointed by Gov. Gavin Newsom in 2021 is John Reynolds, who was managing counsel of Cruise until 2019.

    Resistance is building locally and nationally. Cathy Chase, president of Advocates for Highway and Auto Safety, a nonprofit in Washington seeking more regulation and data transparency on autonomous vehicles as part of its mission for more highway and road safety, said it was “illogical and irresponsible at best, and dangerous and deadly at worst, to go forward with any expansion until the significant problems have been resolved.”

    The San Francisco Municipal Transportation Authority (SFMTA) wrote letters of protest to both company’s applications. In May, the SFMTA said that since it wrote its first letter in January, “new hazards from driverless AV operations in San Francisco have been reported, and general public complaints about driverless AV operations have increased significantly.”

    In May, a Waymo vehicle hit and killed a small dog that was off leash, while a test driver was at the wheel, in what the company said was an unavoidable accident. In June, a Cruise vehicle with no driver started to enter a mass shooting scene in the Mission District, and a video on Twitter showed a police officer yelling to get the car removed. Cruise said a lane was open for emergency vehicles and that its car did a U-turn and pulled over. In April, five Waymo cars stopped and blocked traffic in the Balboa Terrace area, in dense fog, a big problem for the vision systems.

    The letters note that both Waymo and Cruise have “committed numerous violations that would preclude any teenager from getting a California’s Driver’s License.” The SFMTA also calls out the PUC for relying on the DMV for approvals, saying that its draft resolution to approve expansions of both companies is an attempt to “deflect rather than exercise the Commission’s duty to protect public safety.”

    Waymo said it has been working with public safety officials and provides them a phone number to reach Waymo directly in the event that one of its cars stop. Cruise said it is proud of its safety record “which is publicly reported and includes millions of miles driven in an extremely complex urban environment.” Both companies have over 30 letters of support for their plans, from a range of groups including many representing the disabled, such as the National Federation of the Blind of California.

    “It’s because of the donations,” Peskin said.

    But the city’s fire chief Nicholson said there needs to be more from the companies than PR statements and lessons on how to stop their vehicles.

    “They really need to sit down with us and figure out a solution,” she said, adding that when the fire department is in the middle of putting out a fire or rescuing victims or dealing with a health emergency, “to have to handle one of their vehicles, it’s just ridiculous.”

    As is the case with many new technologies, history does tend to repeat itself.

    Chris Gerdes, a professor of mechanical engineering at Stanford University and co-director of the Center for Automotive Research at Stanford (CARS) said that as part of work he has been doing with Ford Motor Co.
    F,
    +0.73%
    ,
    he has been researching ethical and legal issues associated with automated vehicles. These same issues came up when the first automobiles started to arrive on public streets at the turn of the 20th century, clashing with horses and buggies.

    “You go back and look at the debates when the car came out,” Gerdes said, and “there were a lot of debates around should these things be allowed on the road, should they be allowed everywhere? These questions that are coming now were asked about cars back in the day. They can block the road, they can scare horses. Is this something we want to have on the roads? Is it even legal for them to be on the roads?”

    But there is a need to demonstrate that driverless cars are compatible with existing laws and the uses of the roads, he said. “The question becomes at what point do these isolated incidents add to up to danger, to what extent do these compromise the city’s priorities or mobility and traffic flow.” He said they need to compare the autonomous-vehicle data with that from human drivers.

    The SFMTA provided comparison data in its letters of protest. According to the SFMTA, based on data filed with the NHTSA, Cruise’s injury crash rate is estimated to have been 506 injury crashes per 100 million vehicle miles traveled (VMT) between June and November, 2022—approximately 6.3 times the 2021 national average, which is 80 injury crashes per 100 million VMT. Waymo’s injury crash rate is estimated to be 104 injuries per 100 million VMT, approximately 1.3 times the national average, the SFMTA said, when looking at the same period.

    “The collision rate from that small fraction of Cruise driverless operations appears to exceed the collision rate for human drivers,” the SFMTA said in its Cruise letter. For Waymo, the agency said it recommends the commission expand on the findings with a more thorough analysis. “Within the complex driving environment of San Francisco city streets, we must conclude that the technology is still under development and has not reached this goal,” the SFMTA said in its Waymo letter.

    Some in San Francisco are hopeful the delay of the PUC meeting to July 13 is a good sign that the commission is listening to more input from city officials. In its letters, the SFMTA and the San Francisco City Attorney hint at the next step they could take, noting that the PUC “must conduct an environmental review” of Cruise’s and Waymo’s expansion plans, because its actions could cause environmental impacts. What goes unsaid is that the city could seek to compel such a review with a lawsuit.

    Peskin said he has received letters from former employees of the companies saying that autonomous robotaxis are, as the fire chief said, “not ready for prime time.” The workers said they had signed nondisclosure agreements that kept them from saying so publicly. Peskin suggested it could end up like the tobacco industry’s whistleblower case.

    “We would rather work with them than waste taxpayers’ money on lawsuits,” Peskin said, adding that the companies could continue to test their cars with test drivers — an option that is not likely to be acceptable by the companies seeking to make money from their big investment.

    “San Francisco is the perfect place to test them,” he said. “But they still haven’t worked these kinks out.”

    The city of San Francisco is beaten down at the moment, thanks in part to its past close relationship with tech. As the downtown core suffers from the departure of the tech workers that defined it for the past decade, city officials are doing what they can to ensure that the technology some of them created does not become the next hated addition to the city.

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  • Tesla’s stock jumps 6% premarket after second-quarter deliveries beat with 466,000 vehicles

    Tesla’s stock jumps 6% premarket after second-quarter deliveries beat with 466,000 vehicles

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    Tesla Inc. delivered a record number of vehicles in the second quarter, beating market estimates after the electric-car maker increased discounts and incentives, the company reported Sunday. The news sent the stock up more than 6% in premarket trade Monday.

    The Elon Musk-led electric vehicle manufacturer delivered 466,140 vehicles in the three months ended June 30 and produced 479,700 vehicles. The second quarter of 2023 marked the fifth period in a row when Tesla reported a higher level of vehicles produced compared to deliveries.

    Analysts on average had expected Tesla to deliver 445,000 cars, according to analysts polled by Refinitiv. Tesla delivered 254,695 vehicles in the year-ago quarter.

    “This was a massive delivery beat and will send the Tesla bears back into hibernation mode,” Wedbush analyst Dan Ives tweeted Sunday. “This was a trophy case quarter for Musk & Co.”

    Deliveries are a carefully watched number by Tesla shareholders and are the closest approximation of sales disclosed by the company.

    Tesla said total production rose 85.5% to nearly 480,000 vehicles in the three months ended June 30, from a year earlier.

    The company delivered 446,915 Model 3 compact cars and Model Y sport-utility vehicle, as well as 19,225 of its Model S and Model X premium vehicles.

    Tesla increased discounts for vehicles to a $1,600-to-$7,500 range and made all of its Model 3s eligible for full federal credits of $7,500 starting in June in the U.S.

    Earlier this year, Tesla cut prices globally by as much as 20% after missing Wall Street delivery estimates for 2022.

    Tesla is expected to achieve record sales yet again in China, its second-largest market after North America, despite competition from market leader BYD.

    The company said it will post financial results for the second quarter after the market close on Wednesday, July 19. 

    Earlier this year, Ford Motor
    F,
    +1.20%

    and General Motors
    GM,
    +0.94%
    ,
    as well as fast-charging equipment makers, agreed to adopt Tesla’s North American Charging Standard (NACS).

    Tesla
    TSLA,
    +1.66%

    shares closed at $261.77 on Friday ahead of the second-quarter deliveries report, and are up more than 112% year to date.

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  • Tesla beats 2nd quarter estimates with deliveries of 466,000 vehicles

    Tesla beats 2nd quarter estimates with deliveries of 466,000 vehicles

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    Tesla Inc. delivered a record number of vehicles in the second quarter, beating market estimates after the electric carmaker increased discounts and incentives, the company reported on Sunday.

    The Elon Musk-led electric vehicle manufacturer delivered 466,140 vehicles in the three months ended June 30 and produced 479,700 vehicles. The second quarter of 2023 marked the fifth period in a row when Tesla reported a higher level of vehicles produced compared to deliveries.

    Analysts on average had expected Tesla to deliver 445,000 cars, according to analysts polled by Refinitiv.

    Tesla delivered 254,695 vehicles in the year-ago quarter.

    Deliveries are a carefully watched number by Tesla shareholders and are the closest approximation of sales disclosed by the company.

    Tesla said total production rose 85.5% to nearly 480,000 vehicles in the three months ended June 30, from a year earlier.

    The company delivered 446,915 Model 3 compact cars and Model Y sport-utility vehicle, as well as 19,225 of its Model S and Model X premium vehicles.

    Tesla increased discounts for vehicles to a $1,600-to-$7,500 range and made all of its Model 3s eligible for full federal credits of $7,500 starting in June in the United States.

    Earlier this year, Tesla cut prices globally by as much as 20% after missing Wall Street delivery estimates for 2022.

    Tesla is expected to achieve record sales yet again in China, its second-largest market after North America, despite competition from market leader BYD.

    The company said it will post financial results for the second quarter after the market close on Wednesday, July 19, 2023. 

    Earlier this year Ford Motor
    F,
    +1.20%

    and General Motors
    GM,
    +0.94%
    ,
    as well as fast-charging equipment makers agreeing to adopt Tesla’s North American Charging Standard (NACS).

    Tesla
    TSLA,
    +1.66%

    shares closed at $261.77 on Friday ahead of the second-quarter deliveries report.

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  • Li Auto, XPeng, and NIO Deliver Record Number of EVs in June

    Li Auto, XPeng, and NIO Deliver Record Number of EVs in June

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    Deliveries in June from Chinese electric-vehicle producers


    Li Auto



    XPeng


    and


    NIO


    were great but uneven. The results hold a couple of lessons for investors ahead of


    Tesla


    ‘s closely watched delivery report due Sunday.

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  • Like choosy shoppers at a retail store, IPO investors are demanding discounts and displaying price sensitivity

    Like choosy shoppers at a retail store, IPO investors are demanding discounts and displaying price sensitivity

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    IPO investors, much like retail shoppers in recent years’ inflationary environment, are demanding clear discounts and demonstrating sensitivity to price and valuations, according to Renaissance Capital.

    The provider of IPO exchange-traded funds and institutional research said that’s a positive — even if tech unicorns in the pipeline would prefer it were not the case.

    “Quality consumer names are working,” said Matthew Kennedy, senior strategist at Renaissance, listing Kenvue, Cava Group Inc., Gen Restaurant Group Inc. and Savers Value Village Inc. as examples of recent new issues that enjoyed strong debuts.

    Kenvue
    KVUE,
    +1.65%
    ,
    the former consumer arm of Johnson & Johnson
    JNJ,
    +0.87%

    and parent of household-name products such as Tylenol and Band-Aid, raised $3.8 billion in its May IPO at a valuation of $41.08 billion, making it the biggest deal of the year to date.

    Cava Group
    CAVA,
    -5.93%
    ,
    the loss-making Mediterranean-style fast-casual restaurant group, raised $317 million in its mid-June deal at a valuation of $2.5 billion. The stock popped more than 99% on its first day of trade.

    For more: Cava Group CFO is confident restaurant chain will be profitable — but she won’t say when

    Gen Restaurant Group
    GENK,
    +13.95%

    is a profitable Korean barbecue chain that made its debut Wednesday with a more than 50% pop in early trade.

    “But broadly investors are still demanding clear discounts to public peers, especially if they take issue with certain aspects of a deal. So it’s good to see that valuation sensitivity,” said Kennedy.

    Savers Value Village
    SVV,
    +3.45%

    went public Thursday with some fanfare, closing 27% above its $18 issue price. The company is the biggest for-profit thrift-store chain in North America, with 317 stores that operate under multiple names.

    The company is profitable, with net income of $11.9 million in the quarter through April 2, after a loss of $10.2 million in the same period a year earlier. For all of 2022, it had net income of $84.7 million, up from $83.4 million in 2021.

    Revenue for the quarter came to $327.5 million, down from $345.7 million in the year-ago period. Revenue totaled $1.4 billion for 2022, up from $1.2 billion in 2021.

    See: Money-losing food chain Cava showed IPO success. Is it finally time for some tech deals?

    Two other deals that made their debut on Thursday fared less well, however.

    Texas-based Kodiak Gas Services Inc. 
    KGS,
    +3.44%

     and Fidelis Insurance Holdings Ltd. closed lower after pricing below their estimated ranges and making other accommodations to get their deals through.

    Bermuda-based Fidelis, a reinsurer, downsized its deal to 15 million shares from a previous expectation that it would offer 17 million. The initial public offering was priced at $14 a share, below the proposed $16-to-$19 range.

    Maker of oil- and gas-production equipment Kodiak opened almost 3% below its issue price of $16, which was well below its proposed price range of $19 to $22.

    Fidelis has an unusual structure, in that it uses a third party for origination, underwriting and claims management, said Kennedy.

    “We think insurance investors wanted a discount for a company that didn’t own the underwriting group,” he said. “It has an experienced management team, though, so now they’ll just need to execute.”

    Kodiak, meanwhile, carries substantial debt and will need to undertake significant capital spendig in the coming years, just as gas prices have fallen back.

    It’s also worth noting that the last big oil and gas IPO, Atlas, “is slightly below its offer price,” Kennedy said.

    Atlas Energy Solutions Inc.
    AESI,
    -2.75%

    went public in March at an issue price of $18 a share. The stock was last quoted at $17.52.

    Still, Renaissance is expecting a gradual reopening of the IPO market in the second half, said Kennedy, who noted that the IPO ETF
    IPO,
    +1.38%

    has gained about 30% in to date in 2023, outperforming the S&P 500’s
    SPX,
    +1.23%

    14% gain.

    To date, there have been 52 IPOs this year, up 33% from the same time last year, when the market was effectively frozen. Almost $9 billion in proceeds have been raised, up 115% from last year but well below levels seen in frothier times.

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  • JPMorgan, Goldman, Citi and Morgan Stanley boost dividends after Fed stress tests

    JPMorgan, Goldman, Citi and Morgan Stanley boost dividends after Fed stress tests

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    Major U.S. banks including Morgan Stanley and JPMorgan Chase & Co. announced dividend increases late Friday, in the wake of the results of the Federal Reserve’s latest bank stress tests earlier this week.

    JPMorgan
    JPM,
    +1.40%

    said it plans to raise the bank’s dividend to $1.05 a share, up from $1 a share, for the third quarter, subject to board approval.

    The stress tests “show that banks are resilient — even while withstanding severe shocks — and continue to serve as a pillar of strength to the financial system and broader economy,” JPMorgan Chief Executive Jamie Dimon said in a statement.

    “We continue to maintain a fortress balance sheet with strong capital levels and robust liquidity,” Dimon added.

    Morgan Stanley
    MS,
    +0.19%

    said it will increase its quarterly dividend to 85 cents a share from the current 77.5 cents a share, beginning with its third-quarter dividend. The bank also said that its board reauthorized a multiyear share buyback totaling as much as $20 billion, without an expiration date, beginning in the third quarter.

    Don’t miss: Fed stress tests see large banks able to handle recession and slide in commercial-real-estate prices

    See also: Wall Street upbeat on banks after ‘mostly positive’ Fed stress tests results

    “The results of the Federal Reserve’s stress test demonstrate the durability of our transformed business model. We remain committed to returning capital to our shareholders and are raising our dividend by 7.5 cents,” Chief Executive James P. Gorman said in a statement.

    Wells Fargo
    WFC,
    +0.54%
    ,
    for its part, said it will increase its dividend to 35 cents a share, up from 30 cents a share, subject to board approval. It said it has the capacity to undertake a share buyback, “which will be routinely assessed as part of the company’s internal capital adequacy framework that considers current market conditions, potential changes to regulatory capital requirements, and other risk factors,” without elaborating further.

    Goldman Sachs Group Inc.
    GS,
    -0.17%

    said it would raise its dividend, to $2.75 a share from $2.50 a share, starting July 1.

    Market Pulse: Goldman Sachs reportedly looking to exit Apple partnership

    Citigroup Inc. C said its board had approved an increase in its quarterly dividend to 53 cents a share, from 51 cents, also for the third quarter.

    Citi Chief Executive Jane Fraser said that, while the bank “would have clearly preferred not to see an increase in our stress capital buffer, these results still demonstrate Citi’s financial resilience through all economic environments, including the severely adverse scenario envisioned in the Federal Reserve’s stress test.”

    Citi’s “robust capital and liquidity position, as well as the diversification of our funding and our business model, allow Citi to continue to be a source of strength for our clients and navigate challenging macro environments securely,” Fraser said.

    The bank bought back $1 billon in shares in the second quarter and will continue to evaluate its capital actions, the chief executive said. “We are completely committed to simplifying Citi, improving returns and delivering value to our shareholders.”

    Shares of Morgan Stanley and Wells Fargo rose 1.5% and 0.1%, respectively, in the after-hours session after ending the regular trading day up a respective 0.2% and 0.5%. JPMorgan shares edged up 0.2% in the extended session after closing 1.4% higher on Friday. Citigroup shares were up 0.2%, while Goldman’s were largely unchanged.

    Bill Peters contributed.

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  • Banks Boost Dividends After Passing Stress Test. Their Stocks Are on the Rise.

    Banks Boost Dividends After Passing Stress Test. Their Stocks Are on the Rise.

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    Banks Boost Dividends After Passing Stress Test. Their Stocks Are on the Rise.

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  • A breakfast-cereal giant’s grumbles about prices could be music to the Fed’s ears

    A breakfast-cereal giant’s grumbles about prices could be music to the Fed’s ears

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    General Mills the megamanufacturer behind your morning Cheerios, reported a drop in earnings that might make it question whether continuing to raise prices is worth it. 

    General Mills
    GIS,
    +0.52%

    CEO Jeff Harmening acknowledged during the company’s fourth-fiscal-quarter earnings call this week that consumers responded to higher prices by making fewer purchases. “As you look at the last 12 weeks, it’s pretty clear that elasticity — volume elasticities have increased,” which may suggest consumer demand is more sensitive to price increases than it had been previously.

    In business and economics, price elasticity refers to the degree to which individuals, consumers or producers change their demand or the amount supplied in response to price or income changes.

    ‘Companies have been raising prices pretty aggressively. We’re seeing that trend definitely subside.’


    — Richard Moody, Regions Financial Corp.

    The manufacturer of the Häagen-Dazs, Pillsbury and Betty Crocker product lineups, as well as its famed breakfast cereals, felt the impact of this phenomenon as it reported a decline in profits and sales volume for its fourth quarter. 

    Read: General Mills’ stock slides 5% as sales fall short. North American retailers are reducing inventory.

    Richard Moody, chief economist at Regions Financial Corp., said higher prices are posing an issue for companies more broadly. “Companies have been raising prices pretty aggressively. We’re seeing that trend definitely subside. Sellers of goods just don’t have as much pricing power as they had for most of last year and the prior year,” Moody told MarketWatch.

    This could be music to the ears of Federal Reserve officials, who are trying to get inflation back down to their 2% target.

    St. Louis Fed President James Bullard, during the early days of the fight against inflation in 2022, said inflation would return to the Fed’s target once companies find out that raising prices is harmful to their bottom lines.

    In an interview last May with Fox Business Network he observed that “a lot of CEOs have come on TV and said, ‘Oh, I have lots of pricing power, and I can do whatever I want and make a lot of money … but I think some of them are going to get punched in the face here with the fact that consumers have to react.”

    Context: Fed-preferred PCE gauge shows lowest U.S. inflation rate since April 2021, but stickiness at core hints at persistent price pressure

    Also see: U.S. consumer sentiment climbs to 4-month high on slower inflation and end of debt-ceiling fight

    Though General Mills’ drop in earnings might not be the punch in the face Bullard warned of, its recent quarterly update could be a sign that continuing to raise prices is now looking harmful to financial results.

    A statement from the company attributed the drop in earnings to a trend among retailers toward lower inventory levels. During the pandemic, grocery stores stocked up on Nature Valley snack bars and CoCo Puffs due to concerns about supply-chain complications. General Mills says retailers are holding less inventory now, so there is less on the shelves for consumers to purchase.

    CEO Harmening said the majority of General Mills’ price increases are in the marketplace already. Though conditions can change, “we feel good about what we see right now with our pricing and the inflationary environment that we see,” he said, a possible indication that the company might back off of flexing price muscle. 

    Other economists were uncertain about reading too much into lower earnings for companies like General Mills.

    Will Compernolle, macro strategist at FHN Financial, said he detected a bit of a culture change due to grocery-store inflation over the past two years. “People are buying less stuff to eat at home. And that is, you know, a kind of mysterious trend in the sense that this is always considered a necessity,” he said.

    As pandemic-era stay-at-home recommendations and other public health measures were eased, there’s been “a temporary surge in food-services spending” as people have chosen to go out to restaurants rather than cook at home, he said. 

    He said it is unclear how companies like General Mills will respond to consumer spending. In order to determine demand, they will have to see what “the new normal looks like when the dust settles” and ask whether “people going to go back to their old composition of food at home versus food away.” 

    Read: Shopping at Kroger can be up to four times cheaper than eating out, CEO says

    Robert Frick, corporate economist with Navy Federal Credit Union, said he has observed “consumers are saving more and spending less, perhaps out of caution, as most believe a recession is either here or imminent.”

    Lower-income Americans have become particularly sensitive to price increases, Frick said. He shared his “hunch” that there is “kind of a drag on spending because lower-income Americans are being hurt so badly.”

    “It seems likely most of the effects of spending plateauing overall has to do with that lower third of Americans [having] really started to, you know, pinch their pennies and run up their debt, and they don’t want to run it up any more,” Frick said.

    Income and spending data released by the government on Friday showed people may have more money to spend but are not spending quite as much.

    U.S. consumer spending slowed in May, rising just 0.1%, compared with 0.6% growth in consumer spending in the prior month. Consumers saved 4.3% of their disposable income, an increase from April’s 3.4% savings rate. 

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  • Activision’s Microsoft Saga Is Almost Over. It May Be Time to Sell the Stock.

    Activision’s Microsoft Saga Is Almost Over. It May Be Time to Sell the Stock.

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    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.

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  • Goldman Sachs is looking to leave Apple partnership: WSJ

    Goldman Sachs is looking to leave Apple partnership: WSJ

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    Goldman Sachs Group Inc.
    GS,
    -0.17%

    is weighing whether to leave its partnership with Apple Inc.
    AAPL,
    +2.31%
    ,
    amid a broader retreat from consumer banking, the Wall Street Journal reported on Friday. The Journal, citing people familiar with the matter, said Goldman was seeking ways to hand off its Apple credit card and other initiatives from the partnership to American Express Co.
    AXP,
    +1.23%
    .
    Goldman has also considered offloading its card partnership with General Motors Co.
    GM,
    +0.94%

    to American Express or another card issuer, the Journal reported. But any deal isn’t guaranteed, and would require Apple’s approval, the Journal said. Shares of Goldman Sachs were down 0.2% after hours. Shares of Apple, which ended Friday trading with a $3 trillion valuation, inched 0.1% lower after hours.

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  • Apple clinches $3 trillion valuation, becoming first U.S. company to close at that mark

    Apple clinches $3 trillion valuation, becoming first U.S. company to close at that mark

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    Apple Inc. closed out the June quarter with a bang, clinching a $3 trillion valuation for the first time.

    Shares of Apple
    AAPL,
    +2.31%

    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

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  • Supreme Court knocks down Biden’s student-debt forgiveness plan

    Supreme Court knocks down Biden’s student-debt forgiveness plan

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    The Supreme Court knocked down the Biden administration’s plan to cancel up to $20,000 in student debt for a wide swath of borrowers, the court announced Friday. 

    The decision means that the White House won’t move forward with the plan for now, though it’s possible officials could try to launch a new version of the debt-forgiveness initiative using a different legal authority. Roughly 26 million borrowers applied for or were automatically eligible for debt relief under the Biden administration’s plan, which canceled up to $10,000 in student debt for borrowers earning less than $125,000 and up to $20,000 in federal loans for borrowers who met that criteria and also used a Pell grant in college. 

    Americans owe $1.7 trillion of student loans and the White House had estimated that more than 40 million borrowers would benefit from the initiative. But almost as soon as the Biden administration announced the debt-forgiveness plan last year, opponents looked for ways to challenge it legally. Ultimately, two cases made it to the high court. 

    In one case, two student-loan borrowers sued over the debt-relief plan in part because the Department of Education didn’t submit it for public comment. That, they said, resulted in an initiative that arbitrarily left out or limited the amount of relief available to some student loan borrowers, like themselves. The suit filed by the borrowers was backed by the Job Creators Network, a conservative advocacy organization co-founded by Bernard Marcus, the co-founder of Home Depot, who also supported former President Donald Trump. 

    Six Republican-led states brought the other case on the basis that canceling debt could harm their state coffers. 

    The court considered two issues in these cases. The first is whether the plaintiffs had standing, or the ability to bring a lawsuit because they’ve been directly harmed by the policy. The second is whether the Biden administration overstepped in its executive authority when issuing the policy. In order for the justices to reach the second issue, or the merits of the case, they had to find that the plaintiffs had standing to sue. 

    Legal experts, including some who believed the Biden administration didn’t have the authority to authorize the debt-relief plan, were skeptical of the notion that the parties bringing the cases had standing to sue. During oral arguments in February, the court’s three liberal justices also questioned whether the parties who challenged debt forgiveness were actually injured by the policy. 

    In addition, one of the members of the court’s conservative wing, Justice Amy Coney Barrett, asked pointed questions about the six states’ argument that they had standing to sue in part because the debt-relief plan would injure the state of Missouri. That claim surrounded the Missouri Higher Education Loan Authority, or MOHELA, a state-affiliated organization that services federal student loans. The states had argued if MOHELA lost accounts due to the debt-relief plan, its revenue would decline and that loss would hurt Missouri because of MOHELA’s ties to the state. 

    Despite these questions, Barrett agreed with the court’s five other conservative judges and found that the states have standing to sue. The three liberal justices dissented.

    “MOHELA is, by law and function, an instrumentality of Missouri,” Chief Justice John Roberts wrote in the majority opinion. “It was created by the State, is supervised by the State, and serves a public function. The harm to MOHELA in the performance of its public function is necessarily a direct injury to Missouri itself.”

    The court’s decision in the states’ suit allowed the justices to get to the merits of the case. The parties challenging the debt-relief plan argued that the Department of Education went beyond the authority Congress delegated it in discharging student debt. Solicitor General Elizabeth Prelogar argued to the justices that in canceling student debt, the Secretary of Education acted “within the heartland” of the authority Congress provided to him under the HEROES Act, a 2003 law that aims to ensure student-loan borrowers aren’t left worse off by a national emergency. 

    The court’s conservative majority sided with the states, with a 6-3 decision, striking down the debt-relief plan in its current form. 

    “The HEROES Act allows the Secretary to ‘waive or modify’ existing statutory or regulatory provisions applicable to financial assistance programs under the Education Act, but does not allow the Secretary to rewrite that statute to the extent of canceling $430 billion of student loan principal,” Roberts wrote.

    In the months leading up to the court’s decision, White House officials said there was no backup plan for if the Supreme Court knocked down the debt-forgiveness initiative. Advocates and activists have said that student-loan repayments shouldn’t resume until the Biden administration fulfills its promise to cancel some student debt.

    The bill President Joe Biden signed in June to raise the nation’s debt limit requires that the Department of Education end the pause on federal student loan, interest payments and collections 60 days after June 30, 2023. Interest on federal student loans will resume starting September 1 and payments will start to come due in October, according to the Department’s website.

    Advocates and activists have said for years that the Higher Education Act provides the Secretary of Education with the authority to discharge student loans. In ruling that the HEROES Act didn’t authorize the Biden administration’s debt-relief plan, the court left the option open for the Biden administration to create a loan-forgiveness program authorized under the HEA. 

    The court’s decision marks the latest development in a more-than-decade-long push to get the government to cancel student debt en masse. The idea, which has its origins in the Occupy Wall Street movement, made it to the presidential campaign stage during the 2020 cycle and was adopted by the White House last year.    

    Proponents of student debt cancellation and the Biden administration, have expressed concern that without some kind of relief a large swath of borrowers could slip into delinquency and default with the return of student loan payments later this year.

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