Tag: industrial news

U.S. new home sales rose in November by 5.8%

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The numbers: U.S. new home sales rose 5.8% to a seasonally-adjusted rate of 640,000 in November, from a revised 605,000 in the prior month, the Commerce Department reported Friday.

The November sales figure beat analyst estimates. Analysts polled by the Wall Street Journal had forecast new home sales to come in at 600,000 in November.

The sales of new homes are below a peak of 1.04 million in August 2020.

Year-over-year, new home sales are still down by 15.3%.

New home sales rose a revised 8.2% to 605,000 in October, compared with the initial estimate of a 7.5% increase to 632,000.

The new home sales data are volatile month-on-month and are often revised.

Key details: The median sales price of a new home sold in November was $471,200, down from $484,700 in October.

The supply of new homes for sale fell by 7.5% between October and November, equating to an 8.6-month supply.

Regionally, the West led the U.S. in the number of new homes sold, with new homes sold surging by 27.6%, followed by the Midwest.

Sales of new homes dropped in the Northeast and the South this November.

Big picture: 7% mortgage rates didn’t put a damper on new home sales, as seen in today’s report.

New home sales jumped in November, likely as buyers wanted to take advantage of incentives that builders are offering, from mortgage rate buydowns to price cuts.

Builders have been gloomy almost all year, fretting about lower traffic.

But with rates coming back down since, expect housing data to improve further.

What are they saying? “I suspect that builders are much more motivated sellers (especially given the surge in financing costs) than current homeowners, who do not want to part with their 3% or lower mortgages,” Stephen Stanley, chief economist at Amherst Pierpont, wrote in a note. “This may explain why new home sales are rising while existing home sales plunge. ”

But overall, sales are still weaker than usual: Stanley noted that combined existing and new home sales in November fell to the lowest level since 2011.

Market reaction: The Dow Jones Industrial Average
DJIA,
+0.53%
and the S&P 500
SPX,
+0.59%
were down in early trading on Friday. The yield on the 10-year Treasury note
TMUBMUSD10Y,
3.749%
rose above 3.7%.

Shares of builders, including D.R. Horton, Inc.
DHI,
-1.29%,
Lennar Corp
LEN,
-0.46%,
PulteGroup Inc.
PHM,
-0.52%,
and Toll Brothers Inc.
TOL,
-0.33%
traded lower during morning trading.

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December 23, 2022
Blue Apron receives delisting notice, just as stock bounces back above $1

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Shares of Blue Apron Holdings Inc.
APRN,
+1.46%
shot up 9.9% in morning trading Friday, to trade back above the $1 level for the first time in more than two weeks, after the meal-kit company said it received a delisting notice from the New York Stock Exchange. The notice said the company was not in compliance with the listing requirement of a minimum average stock closing price of at least $1 over a consecutive 30-day period and an average market capitalization of at least $50.0 million, also over a consecutive 30-day period. The company said it plans to notify the NYSE on Jan. 6 that it received the delisting notice, and intends to submit a plan to “cure” the minimum stock price and market capitalization deficiencies. The stock has closed below the $1 mark since Dec. 6, and closed at a record low of 64 cents on Dec. 13. It has bounced since then after the company said it received funding from a major investor; it has rocketing 56.7% amid a four-day winning streak. Meanwhile, the company’s market capitalization was $41.6 million at current stock prices, and has been below $50 million since Nov. 11, according to FactSet data. The stock has plummeted 84.4% year to date, while the S&P 500
SPX,
+0.59%
has shed 20.1%.

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December 23, 2022
Tesla Doubles Discounts on Model 3 and Model Y Vehicles

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Tesla Doubles Discounts on Model 3 and Model Y Vehicles

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December 22, 2022
If you think a Santa Claus rally is coming to the stock market, this is how to play it

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The benchmark S&P 500 Index has finally fallen below the 3900- to 4100-point trading range.

The move prompted an immediate reaction down to 3800, the next support level. (To see my suggestion for a so-called Santa Claus rally, please see the next item, below.)

Frankly, I would have expected more selling after the S&P 500
SPX,
-2.32%
broke a support level of that magnitude (perhaps a move to 3700).

So, 3700 is the next support level, and then there is support at the yearly lows near 3500. On the upside, there is now resistance in the 3900-3940 area.

The larger picture is that SPX is still in a downtrend, and that the last rally failed in early December right at the downtrend line that defines this bear market. The declining 200-day moving average (MA) was also in that same area, near 4100.

We are closing our positions in the McMillan Volatility Band (MVB) buy signal that occurred in early October, and we will now wait for a new signal to set up. If SPX were to close below the lower -4σ Band (currently at 3760 and declining), that would be the first step toward a new buy signal. That does not appear to be imminent.

Equity-only put-call ratios continue to rise and, thus, remain on sell signals. There has been some relatively heavy put buying in stock options over the past few weeks, and that has been a major contributing factor in the rise in the put-call ratios. These ratios are rather high on their charts, so they are considered to be in oversold territory. However, “oversold” does not mean “buy.”

After the market broke below 3900, breadth was poor for the next two days. That pushed the breadth oscillators — which were already on sell signals dating back to December 5^th — into oversold territory. We are now watching to see if they can generate buy signals. In fact, the NYSE breadth oscillator did generate a buy signal as of December 21^st, but the “stocks only” oscillator has not. We generally require that any signal from this indicator (which is subject to whipsaws) persist for at least two consecutive days before considering it to be an actionable signal.

New 52-week highs on the New York Stock Exchange have lagged for some time again, and thus the “new highs vs. new lows” indicator remains on a sell signal.

So, the above indicators are relatively negative, but that is contrasted by the CBOE Volatility Index
VIX,
+15.50%
indicators, which are more bullish. The VIX “spike peak” buy signal of December 13^th remains in place. Moreover, the trend of VIX buy signal, which is a more intermediate-term signal, remains in place. VIX would have to rise above 26 to cancel out these buy signals.

The construct of volatility derivatives remains bullish. That is, the term structures of the VIX futures and of the CBOE Volatility Indices slope upward. Moreover, the VIX futures are all trading at a premium to VIX. January VIX futures are now the front month, so we are watching for a warning sign, which would come if Jan VIX futures rose above the price of Feb VIX futures. That is not in danger of happening at this time.

The seasonal patterns that supposedly “rule” between Thanskgiving and the beginning of the new trading year have not worked out this year. The last of those patterns is yet to come, though — the Santa Claus rally — and it may still be able to salvage something for the bulls.

In summary, we continue to maintain a “core” bearish position and will continue to do so as long as SPX is in a downtrend. We will trade confirmed signals from our other indicators around that “core” position.

New recommendation: Santa Claus rally

The Santa Claus rally is a term and market seasonal pattern defined by Yale Hirsch over 60 years ago. It has a strong track record. The system is simple: The market rises over the last five trading days of one year and the first two trading days of the next year — a seven-day period.

This year the system begins at the close of trading on Thursday, December 22^nd (today). However, if that period does not produce a gain by SPX, that would be a further negative for stocks going forward.

At the close of trading on Thursday, December 22^nd,

Buy 2 SPY Jan (13^th) at-the-money calls

And Sell 2 SPY Jan (13^th) calls that are 15 points out of the money.

There is no stop for this trade, except for time. If the SPDR S&P 500 ETF Trust
SPY,
-2.29%
trades at the higher strike while the position is in place, then roll the entire spread up 15 points on each side. In any case, exit your spreads at the close of trading on Wednesday, January 4^th (the second trading day of the new year).

Follow-up action

All stops are mental closing stops unless otherwise noted.

We are using a “standard” rolling procedure for our SPY spreads: in any vertical bull or bear spread, if the underlying hits the short strike, then roll the entire spread. That would be roll up in the case of a call bull spread, or roll down in the case of a bear put spread. Stay in the same expiration, and keep the distance between the strikes the same unless otherwise recommended.

Long 2 SPY Jan (20^th) 375 puts and Short 2 Jan (20^th) 355 puts: this is our “core” bearish position. As long as SPX remains in a downtrend, we want to maintain a position here.

Long 1 SPY Jan (6^th) 408 call and short 1 SPY Jan (6^th) 423 call: this trade is based on the MVB buy signal, which was established on October 4^th. We have already rolled up a couple of times and taken some profit out of the position. Close the remaining spread now.

Long 2 KMB Jan (20^th) 135 calls: we rolled this position up last week. The closing stop remains at 135.

Long 2 IWM Jan (20^th) 185 at-the-money calls and Short 2 IWM Jan (20^th) 205 calls: this is our position based on the bullish seasonality between Thanksgiving and the second trading day of the new year. We will adjust this position if IWM rallies during the holding period, but initially there is no stop for the position, so the entire debit is at risk.

Long 2 PSX Jan (20^th) 105 puts: we intended to hold these puts as long as the weighted put-call ratio remains on a sell signal. However, the put-call ratio has rolled over to a buy signal, so exit these puts now.

Long 2 AJRD Jan (20^th) 52.5 calls: AJRD received an all-cash takeover offer of $56, so exit these calls now. Do not sell them below parity.

Long 1 SPY Jan (20^th) 402 call and Short 1 SPY Jan (20^th) 417 calls: this spread was bought at the close on December 13^th, when the latest VIX “spike peak” buy signal was generated. Stop yourself out if VIX subsequently closes above 25.84. Otherwise, we will hold for 22 trading days.

Long 1 SPY Jan (20^th) 389 put and Short 1 SPY Jan (20^th) 364 put: this was an addition to our “core” bearish position, established when SPX closed below 3900 on December 15^th. Stop yourself out of this spread if SPX closes above 3940.

Long 2 PCAR Feb (17^th) 97.20 puts: these puts were bought on December 20^th, when they finally traded at our buy limit. We will continue to hold these puts as long as the weighted put-call ratio is on a sell signal.

Send questions to: lmcmillan@optionstrategist.com.

Lawrence G. McMillan is president of McMillan Analysis, a registered investment and commodity trading advisor. McMillan may hold positions in securities recommended in this report, both personally and in client accounts. He is an experienced trader and money manager and is the author of the best-selling book, Options as a Strategic Investment. www.optionstrategist.com

Disclaimer: ©McMillan Analysis Corporation is registered with the SEC as an investment advisor and with the CFTC as a commodity trading advisor. The information in this newsletter has been carefully compiled from sources believed to be reliable, but accuracy and completeness are not guaranteed. The officers or directors of McMillan Analysis Corporation, or accounts managed by such persons may have positions in the securities recommended in the advisory.

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December 22, 2022
Scott Minerd, prominent Guggenheim Partners money manager, dies unexpectedly of heart attack

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Guggenheim Partners Global Chief Investment Officer Scott Minerd has died, the company announced in a press release issued Thursday. He was 63.

The money manager was one of the most prominent on Wall Street, known for his calls on stocks, bonds and Federal Reserve policy as well as for his muscular physique.

Reports indicated that Minerd suffered a heart attack during a workout. He died on Wednesday afternoon.

“We’re deeply saddened by the death of Scott Minerd and send our deepest condolences to his husband, friends and family,” said Gerard Carney, a spokesman for Guggenheim Partners.

Minerd became CIO of Guggenheim Partners in 1999, shortly after the firm was founded. He was a frequent commentator in the media, making calls on the S&P 500
SPX,
-1.45%,
the Dow Jones Industrial Average
DJIA,
-1.05%
and Treasurys.

Read: Guggenheim’s Minerd believes fine art, real estate will outperform stocks, sees bitcoin bottoming at $8,000

Also see: Fed may need to pivot by early November, when ‘something breaks,’ says Guggenheim’s Scott Minerd

He was known for his macro approach to investing and as a fixed-income expert who understood structured securities and currencies. He was employed at Merrill Lynch, Morgan Stanley and Credit Suisse First Boston in the 1980s and 1990s, working with legendary CEOs John Mack and Bob Diamond.

In 2017, he told Bloomberg that he had “walked away from extremely large offers on Wall Street” because he had become burnt out at age 37. “I realized this wasn’t a dress rehearsal for life, this was it,” he said.

“I have known Scott for over 30 years and we were partners much of that time,” wrote Mark Walter, CEO and a founder of Guggenheim. “Scott was a key innovator and thought leader who was instrumental in building Guggenheim Investments into the global business it is today.

“He will be greatly missed by all. My deepest condolences are with his husband, family and loved ones,” Walter wrote.

At his peak, Minerd could bench-press nearly 500 pounds, and he competed in the super-heavyweight and over-40 divisions of L.A. bodybuilding championships.

The son of an insurance salesman, Minerd grew up in southwestern Pennsylvania on land where his family settled before the Revolutionary War, Bloomberg reported.

Members of the investment community were stunned by news of Minerd’s death.

Billionaire Bill Ackman, who runs the hedge fund Pershing Square Capital Management, described Minerd as a “brilliant man.”

“He was also a lot of fun. I wish I had more time with him. Carpe diem,” Ackman wrote via Twitter.

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December 22, 2022
FTX co-founder Gary Wang, ex-Alameda CEO Caroline Ellison plead guilty to federal charges

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On the same day that that the Bahamas extradited FTX co-founder and former CEO Sam Bankman-Fried to the U.S. to face criminal charges, two former executives at FTX and Alameda Research pleaded guilty Wednesday to federal fraud charges.

Caroline Ellison, 28, the former chief executive of Alameda Research — the crypto trading company founded by Bankman-Fried — and Zixiao (Gary) Wang, 29, co-founder of crypto platform FTX and its former chief technology officer, were charged for their roles in contributing to the crypto platform’s collapse.

The pair each faced decades-long prison sentences if convicted, and pleaded guilty to charges that included wire fraud, securities fraud and commodities fraud in exchange for leniency. In a video Wednesday night, U.S. Attorney Damian Williams of the Southern District of New York said both were cooperating in the continuing investigation into FTX and Bankman-Fried.

Williams added that Bankman-Fried, 30, was in FBI custody and will appear in court in “as soon as possible,” and suggested more charges in the FTX case could be forthcoming.

“If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it,” Williams said. “We are moving quickly and our patience is not eternal. … and we are far from done.”

In a parallel action, the Securities and Exchange Commission on Wednesday also charged Ellison and Wang “for their roles in a multiyear scheme to defraud equity investors in FTX.”

According to the SEC complaint, Ellison helped manipulate the price of FTX-issued crypto token FTT, which served as collateral for undisclosed loans from FTX customers’ assets to Alameda. In addition, the SEC alleges Bankman-Fried misled customers by falsely claiming FTX was a safe trading platform with strict risk-mitigation measures.

The SEC claims Wang created software code to allow Alameda to divert FTX customers’ funds, and that Ellison used those funds for Alameda’s trading activity.

“As part of their deception, we allege that Caroline Ellison and Sam Bankman-Fried schemed to manipulate the price of FTT, an exchange crypto security token that was integral to FTX, to prop up the value of their house of cards,” SEC Chair Gary Gensler said in a statement. “We further allege that Ms. Ellison and Mr. Wang played an active role in a scheme to misuse FTX customer assets to prop up Alameda and to post collateral for margin trading. When FTT and the rest of the house of cards collapsed, Mr. Bankman-Fried, Ms. Ellison, and Mr. Wang left investors holding the bag. Until crypto platforms comply with time-tested securities laws, risks to investors will persist. It remains a priority of the SEC to use all of our available tools to bring the industry into compliance.”

Bankman-Fried was arrested in the Bahamas last week after he was indicted by U.S. federal prosecutors, who allege he played a key role in the collapse of FTX, diverting billions of dollars of customer assets and defrauding investors, customers and lenders.

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December 21, 2022
FTX founder Sam Bankman-Fried extradited to U.S. to face criminal charges

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NASSAU, Bahamas — Bahamian authorities said Wednesday that former FTX CEO Sam Bankman-Fried has been extradited to the United States, where he faces criminal charges related to the collapse of the cryptocurrency exchange.

Bahamas’s attorney general’s office said that Bankman-Fried would be leaving for the United States later Wednesday, noting he had waived his right to challenge the extradition.

Reporters on the scene witnessed Bankman-Fried leaving a Magistrate Court in Nassau in a dark SUV earlier Wednesday. The vehicle was later seen arriving at a private airfield by Nassau’s airport, from which he is expected to be flown to the United States. He is due to land in New York and will likely appear in front of a U.S. judge on Thursday.

“The Bahamas has determined that the provisional arrest, and subsequent written consent by (Bankman-Fried) to be extradited without formal extradition proceedings satisfies the requirements of the (extradition treaty between the U.S. and the Bahamas) and our nation’s Extradition Act,” said Bahamian Attorney General Ryan Pinder, in a statement.

Bahamian authorities arrested Bankman-Fried last week at the request of the U.S. government. U.S. prosecutors allege he played a central role in the rapid collapse of FTX and hid its problems from the public and investors. The Securities and Exchange Commission said Bankman-Fried illegally used investors’ money to buy real estate on behalf of himself and his family.

The 30-year-old could potentially spend the rest of his life in jail.

Bankman-Fried was denied bail Friday after a Bahamian judge ruled that he posed a flight risk. The founder and former CEO of FTX, once worth tens of billions of dollars on paper, had been held in the Bahamas’ Fox Hill prison, which has been has been cited by human rights activists as having poor sanitation and as being infested with rats and insects.

Once he’s back in the U.S., Bankman-Fried’s attorney will be able to request that he be released on bail.

Bankman-Fried was one of the world’s wealthiest people on paper, with an estimated net worth of $32 billion. He was a prominent personality in Washington, donating millions of dollars toward mostly left-leaning political causes and Democratic political campaigns. FTX grew to become the second-largest cryptocurrency exchange in the world.

He has said that he did not “knowingly” misuse customers’ funds, and said he believes his millions of angry customers will eventually be made whole.

At a congressional hearing last week, the new FTX CEO John Ray III, who is tasked with taking the company through bankruptcy, bluntly disputed those assertions: “We will never get all these assets back,” Ray said.

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December 21, 2022
Micron sales could dive more than 50%, and more belt-tightening is expected before outlook improves

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Micron Technology Inc.’s revenue declines could worsen to more than 50% before inventory-saturated customers work though that product and boost sales in the second half of 2023, but before then the memory-chip maker is implementing some austerity measures.

Micron
MU,
+1.01%
said it expects an adjusted loss of between 72 cents and 52 cents a share on revenue of $3.6 billion to $4 billion for the fiscal second quarter, with the midpoint 51% lower than last year’s second-quarter revenue total of $7.78 billion. Analysts had forecast an adjusted loss of 32 cents a share on revenue of $3.92 billion.

In a filing with the Securities and Exchange Commission, the memory-chip specialist disclosed that management plans to cut about 10% of its staff in 2023, “through a combination of voluntary attrition and personnel reductions.” About $30 million in restructuring costs are expected, all in the fiscal second quarter.

Along with headcount reductions, Micron said in 2023 it will also suspend share buybacks, productivity programs and company bonuses, and that executive salaries would be “cured” for the rest of the fiscal year. Sanjay Mehrotra, Micron’s chief executive, also told analysts after the release of results that he expected profitability to remain challenged through 2023.

Micron specializes in DRAM, or dynamic random access memory, the type of memory commonly used in PCs and servers, and NAND chips, which are the flash memory chips used in smaller devices like smartphones and USB drives.

Micron shares were down less than 1% after hours, following a 1% rise to close the regular session at $51.19. Micron shares are down 45% for the year compared with a 19% fall by the S&P 500 index
SPX,
+1.49%
and a 32% drop by the Nasdaq Composite Index
COMP,
+1.54%
and a 33% drop on the PHLX Semiconductor Index
SOX,
+2.36%.

Mehrotra said he expects DRAM growth to rise by about 10% and NAND to rise by around 20%. “For both years, demand in DRAM and NAND is well below historical trends and future expectations of growth largely due to reductions in the end demand in most markets, high inventories at customers, the impact of the macroeconomic environment and the regional factors in Europe and China,” Mehrotra said.

“But the largest impact to the profitability and financial outlook for us is the supply-demand balance, and the rate and pace of this improvement is going to be a function of aligning supply with demand, and we’re taking decisive actions on CapEx and utilization to address it,” Mark Murphy, Micron’s chief financial officer, told analysts on the call.

Data-center and cloud sales were considered relatively safe, but in another potentially developing crack, Mehrotra said the current environment showed some softness in cloud data-center demand, given tighter consumer spending.

“We do absolutely expect that once we get past the current macroeconomic environment and macroeconomic weakening, longer-term trends for cloud will remain strong,” Mehrotra said. “In terms of the current environment, yes, inventory adjustments and some impact of cloud and demand weakening as well. That’s impacting our overall data-center outlook.”

The CEO also told analysts he expects customers to be in a much better position in the burning off of their inventories by the middle of 2023.

“By mid-calendar ’23, we are projecting, even though we don’t have perfect visibility, but based on all of our discussions with our customers, we are projecting that inventory at customers will be in relatively healthier position by that time.”

“And that’s where we say that our second half of fiscal-year revenue will be greater than first half, and we would expect continued improvements beyond the second half as well,” the CEO said.

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December 21, 2022

11 high-yield dividend stocks that are Wall Street’s favorites for 2023

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Investors love dividend stocks but there are different ways to look at them, including various “quality” approaches. Today we are focusing on high yields.

A high dividend yield can be a warning that investors have lost confidence in a company’s ability to maintain its dividend payout. But there are always exceptions, some of which can be brought about by market events — some investors remain skeptical of energy stocks, for example, after so much pain before this year’s outstanding performance for the sector.

Below is a screen of stocks that have high dividend yields and are favored by analysts. The screen has no financial quality filters.

For investors who are interested in dividend stocks but wish to focus on quality and total returns, this recent look at the S&P Dividend Aristocrats (companies that have raised dividends consistently for many years) might be of interest. For those looking for income but also worried about dividend cuts, here is a list of stocks with dividend yields of at least 5% whose payouts are expected to be well-covered by free cash flow in 2023.

If you are looking for higher yields with moderate risk, you should at also learn about funds that use covered-call option strategies to enhance income.

Removing the filters for a high-yield dividend-stock screen

For a broad screen of stocks with high dividend yields that are favored by analysts, we began with the S&P Composite 1500 Index
SP1500,
+1.42%,
which is made up of the S&P 500
SPX,
+1.42%,
the S&P 400 Mid Cap Index
MID,
+1.48%,
and the S&P 600 Small Cap Index
SML,
+1.49%.

The S&P indexes exclude energy partnerships, so we added the 15 stocks held by the Alerian MLP ETF
AMLP,
+1.81%
to the list. Energy partnerships tend to have high distribution yields, in part because they pass most earnings through to investors. But they also can make tax preparation more complicated. They can also be volatile as oil
CL00,
+2.96%
CL00 and natural-gas
NG00,
+1.58%
prices swing.

The S&P indexes also exclude business development companies, or BDCs, so we expanded our initial screen to include the 24 stocks held by the VanEck BDC income ETF
BIZD,
+0.76%.
BDCs are specialized leveraged lenders that make loans with high interest rates, mainly to middle-market companies. They often take equity stakes in the companies they lend to, for a venture-capital-type of investment style. The BDC space features several stocks with very high dividend yields, but is also known for volatility.

You have been warned — this particular stock screen focuses only on high yields and favorable ratings among analysts working for brokerage firms. There is no look back at dividend cuts and no cash-flow analysis as featured in other dividend-stock articles. If you see anything of interest resulting from the screen, you need to do your own research to consider whether or not a long-term commitment to one or more of these companies is worth the risk as you seek high income.

The screen

Starting with the S&P Composite 1500 and the components of AMLP and BIZD, there are 68 stocks with dividend yields of at least 8%, according to data provided by FactSet.

Among the 68 companies, 55 made the first screen, because they are covered by at least five analysts polled by FactSet.

Among the 55 companies, 11 have “buy” or equivalent ratings among at least 70% of analysts.

Here they are, ranked by upside potential implied by analysts’ consensus price targets:

Company	Ticker	Dividend yield	Share “buy” ratings	Dec. 20 price	Consensus price target	Implied 12-month upside potential
Energy Transfer LP	ET, +2.35%	9.08%	95%	$11.68	$16.24	39%
Enterprise Products Partners LP	EPD, +0.88%	8.12%	79%	$23.39	$31.69	35%
Barings BDC Inc.	BBDC,	11.67%	86%	$8.14	$10.75	32%
Redwood Trust Inc.	RWT, +2.70%	13.45%	80%	$6.84	$8.92	30%
Crestwood Equity Partners LP	CEQP, +0.78%	9.75%	100%	$26.86	$35.00	30%
KKR Real Estate Finance Trust Inc.	KREF, +1.38%	11.90%	71%	$14.45	$18.50	28%
Owl Rock Capital Corp.	ORCC, +0.38%	11.21%	91%	$11.78	$14.73	25%
Sixth Street Specialty Lending Inc.	TSLX, +1.89%	10.48%	82%	$17.18	$20.90	22%
Oaktree Specialty Lending Corp.	OCSL, -0.37%	9.97%	100%	$6.77	$7.75	14%
Ares Capital Corp.	ARCC, +1.22%	10.45%	93%	$18.38	$20.87	14%
BlackRock TCP Capital Corp.	TCPC, +1.76%	10.25%	71.43%	$12.49	$14.00	12%
Source: FactSet

One way to begin your own research into any company listed here is to click on the ticker for more information.

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

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December 21, 2022

Federal spending bill’s pandemic provisions: more public health data, no investigation into COVID’s origin
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COVID-19 cases are once again rising in the U.S., but how prepared are we for the next pandemic?

That’s a question worth asking. The $1.7 trillion omnibus spending bill presented by lawmakers on Tuesday includes a pandemic preparedness package, which has provisions that aim to build up the stockpile of drugs and medical supplies, strengthen how the U.S. can predict, model and forecast infectious disease threats, and test out a loan repayment plan for workers with expertise in infectious diseases and emergency preparedness.
The package does not include a task force that would investigate the origins of SARS-CoV-2 or the $9 billion that President Joe Biden requested to address the ongoing pandemic.

“We are not fixing the things that led to a bad response over COVID, and we’re facing a serious possibility that new variants of concern could arise in China,” Dr. Zeke Emanuel, vice provost of global initiatives at the University of Pennsylvania, told Axios.

COVID news to know:

Masks are coming back. Oakland is now requiring masks in government buildings, reports the San Francisco Chronicle, while New York City Mayor Eric Adams wore a mask on Tuesday during a press briefing telling New Yorkers to take precautions against circulating viruses. “The mayor is signaling to you that it is the socially conscious thing to do right now,” he said, according to the New York Times.

Germany sending COVID shots to China. Germany said Wednesday that it has shipped doses of the vaccine developed by BioNTech
BNTX,
+1.44%
and Pfizer
PFE,
+0.74%
to China, to be administered to Germans who live there, according to the Associated Press. The vaccine is not authorized for use in China.

At least 67,000 people in the U.S. are testing positive every day. That’s 24% higher than it was two weeks ago, according to a New York Times tracker. COVID hospitalization and deaths continue to increase, as well, with about 40,000 people in the hospital and 407 people dying every day. At the beginning of December, about 250 deaths were reported every day.

Few seniors in the U.S. are getting a booster. Nearly 95% of all Americans who are 65 years old and older got the primary series of COVID shots. But only 36% have opted to get the new bivalent boosters, which equally protect against the original strain of the virus and the BA.4/BA.5 subvariants. The rationale? They aren’t sure it works, can’t find it, or didn’t know it was available, according to the New York Times.
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December 21, 2022
FedEx’s package volumes keep falling, but it’s still getting more money out of each delivery

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FedEx Corp. on Tuesday said it planned to slash an extra $1 billion in costs beyond what it outlined in September, amid what management called a “weaker demand environment” that led to softer-than-expected sales for its second quarter.

Still, shares rallied after hours, as investors and analysts focused on the parcel-delivery service’s profit forecast. And the company still managed to squeeze more consumer dollars out of each delivery as package volumes slipped — helped by the surcharges that carriers tack on to bills to offset rising fuel costs.

The company reported earnings as investors looked for clues about holiday spending in an economy where just about everything is more expensive, and as FedEx
FDX,
-2.62%
prepares to raise shipping prices next month.

During FedEx’s conference call to discuss its results, executives described an environment where global demand fell further in the second quarter than it did during a particularly harsh first quarter that sank its stock. While they said package volumes, comparatively, would improve later on in the fiscal year, they said they hadn’t seen much of a change in business yet in China, even as the economy there reopens after pandemic-related lockdowns.

Meanwhile, they said the U.S. was still recalibrating after consumers loaded up on electronics, furniture and other goods bought online during the pandemic.

“I think the main macro issue in the United States is really the e-commerce reset,” Chief Executive Raj Subramaniam said during the call.

The extra billion in savings brings FedEx’s total expected cuts to roughly $3.7 billion for the fiscal year, which ends in May. In September, the company announced up to $2.7 billion in cost cuts for the fiscal year ahead as concerns grew about stalled shipping demand in an inflation-scarred economy.

FedEx also lowered its fiscal 2023 capital spending forecast by $400 million and unveiled a new long-term cost-saving program, called DRIVE, which it hopes will bring more than $4 billion in annualized structural cost savings by fiscal 2025. The company said more details on DRIVE would come during a conference call in the first half of the next calendar year.

Subramaniam said some of FedEx’s cuts would come from digitization and automation in the U.S. and Europe, and other technology that helps trucks deliver more packages per trailer. FedEx has already grounded jets and reduced flights in its large, internationally-focused Express segment, which offers expedited air and ground deliveries. Cuts elsewhere will come from halting Sunday operations in its ground service, where trucks ship goods in the U.S. and Canada, and closing locations that offer copying and printing services, FedEx said in September.

Subramaniam on Tuesday also said that service issues that hurt the company’s results in the prior quarter had improved, and that hangups at Charles De Gaulle airport in Paris had been “largely alleviated.”

For the full year, FedEx forecast earnings per share of $13 to $14. For the full fiscal year, FactSet forecast adjusted earnings of $13.93 a share, with revenue of $94.358 billion.

“While modestly below consensus at the mid-point . . . our sense is that this is in line with (or maybe a bit better than) buyside expectations,” Stephens analyst Jack Atkins said in a note Tuesday, adding that the outlook included the $3.7 million in reductions.

“Net, with most investors sitting this quarter out and the company issuing an outlook that was likely better than some feared, we think the stock reacts positively to these results tomorrow,” he continued.

Shares rose 4.8% in after-hours trade.

FedEx reported fiscal second-quarter net income of $788 million, or $3.07 a share, compared with $1 billion, or $3.88 a share, in the same quarter last year. Revenue slipped to $22.8 billion, compared with $23.5 billion in the prior-year quarter.

Adjusted for costs related to “business optimization,” FedEx earned $3.18 a share, compared with $4.83 the same quarter in 2021.

Analysts polled by FactSet expected FedEx to report adjusted earnings of $2.81 a share on sales of $23.7 billion.

“The FedEx team moved with urgency to make rapid progress on our ongoing transformation while navigating a weaker demand environment,” Subramaniam said in FedEx’s earnings release. “Our earnings exceeded our expectations in the second quarter, driven by the execution and acceleration of our aggressive cost-reduction plans.”

Management said that its Express segment suffered a 64% decline in operating income, as global package volumes fell. But yields — or sales per package, and a measure of how high a price FedEx can charge — rose 8%. Higher fuel surcharges helped that yield figure.

The company’s Ground division, where trucks ship packages in the U.S. and Canada, got a 24% boost in operating income. Cost cuts and a 13% increase in yields helped there, even as package also volumes slipped.

FedEx stock has fallen 35% this year. By comparison, the S&P 500 Index
SPX,
+0.10%
is down around 19%.

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December 20, 2022
Nike stock jumps more than 10% as earnings, sales destroy expectations

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Nike Inc.’s stock spiked more than 13% in extended trading Tuesday after the sporting-goods retailer reported early holiday earnings and sales are tracking solidly higher than Wall Street expected, though inventories remain high and a forecast could still loom.

Nike
NKE,
+0.16%
reported fiscal second-quarter net earnings of $1.33 billion, or 85 cents a share, compared with net earnings of 83 cents a share in the year-ago quarter. Revenue was $13.32 billion, up 17% from $11.36 billion a year ago for the sneaker maker in the quarter, which ended Nov. 30.

Analysts surveyed by FactSet had expected on average net earnings of 64 cents a share on revenue of $12.58 billion.

Nike executives did not provide a third-quarter forecast in their announcement, though Chief Financial Officer Matthew Friend said in a conference call he expects annual revenue grow in the the “low teens.” In an earlier statement, Chief Executive John Donahoe said the results “give us confidence in delivering the year as our competitive advantages continue to fuel our momentum,” while Friend added, “We are on track to deliver on our operational and financial goals.”

In a conference call late Tuesday, Donahoe noted a rebound of business in China and improving inventory levels because of strong consumer demand.

Nike announced the results amid a daunting confluence of slackening consumer spending, foreign-exchange headwinds and an elevated promotional environment, Jefferies says in a research note. In September, Nike shares tumbled after executives said markdowns on the retailer’s products would squeeze margins, and they expected clothing competitors to keep slicing prices through at least the end of the year.

Read more: Inventory concerns are pounding Nike’s stock

With consumers buying fewer clothes, Nike and other retailers have shouldered swelling inventories, though executives at Nike insist the level of excess goods likely peaked in North America this summer. In Tuesday’s report, Nike reported inventories of $9.3 billion, up 43% from the same quarter a year ago. Analysts on average were projecting inventories of $8.83 billion, according to FactSet.

“The market is focused on progress to resolution of FY23 inventory issues as a set up to a strong margin recovery” in fiscal 2024, Stifel analysts said in a note last week.

Shares of Nike have declined 38% this year, while the broader S&P 500 index
SPX,
+0.10%
is down 20%.

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December 20, 2022
Tesla Shares Are Weak. The Reason Why Is in the Stock Chart.

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Tesla stock is weak again despite the likelihood CEO Elon Musk will step down as head of Twitter and earnings estimates for 2023 staying stable.

Investors are perplexed, but traders know why. Investors can’t, or shouldn’t, ignore the stock chart.

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December 20, 2022
China predicts COVID ‘normalcy’ within months, but experts forecast more than 1 million deaths

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China’s closely watched reopening is now causing concern as the number of new COVID-19 cases grows and the country reports the first deaths in several weeks.

Much of the news out of China this week is in stark contrast to zero COVID, the strict policy that was in place up until a month ago. In response to widespread protests, authorities have lifted many of the restrictions that limited how people in China were able to move, work and treat their illnesses.

Now some local governments are encouraging people with mild COVID to continue to work. Beijing reported five COVID deaths on Tuesday and two on Monday — the first COVID fatalities to be reported in the country in weeks. Cities like Guangzhou are expanding “fever clinics” that can handle up to 110,000 patients a day, up from 40,000. And basic cold medicines are in short supply.

Chinese authorities have reportedly told state media that the surge is part of an “exit wave” of cases, according to the Financial Times. A headline from Monday’s China Daily, an English-language news outlet in China, reads: “Virus experts expect normalcy by spring.”

Experts have predicted that millions of people in China will get sick, and up to 1.6 million people could die in 2023.

COVID news to know:

• In the U.S., it’s still hard to find children’s cold medications. CVS Health
CVS,
-0.31%
and Walgreens Boots Alliance
WBA,
+0.95%
this week put limits on purchases of children’s cold and flu medicines in response to high demand amid a surge in cases of pediatric COVID, influenza and respiratory syncytial virus, or RSV, according to the Wall Street Journal. This includes medications like acetaminophen and ibuprofen.

• Testing positive a second or third time may worsen long-COVID symptoms, according to a study published in Nature in November. However, it can be hard to predict how each new infection will affect an individual patient. “It makes sense that repeat infections would not be beneficial to a person’s health,” one doctor told WebMD. “But I think it’s really hard to know what the additional risk of each subsequent infection would be because there are all sorts of other things in the mix.”

• COVID hospitalizations are rising in the U.S. There are about 40,000 people hospitalized with COVID right now, a figure that is 11% higher than it was two weeks ago, according to the most recent update of a New York Times tracker. The numbers of new infections and COVID-related deaths are also rising this month. The seven-day daily average of new cases is about 66,000, while about 413 people are dying each day.

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December 20, 2022
Wells Fargo ordered to pay $3.7 billion for alleged mismanagement of auto loans, mortgages and deposit accounts

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The Consumer Financial Protection Board on Tuesday said it is requiring Wells Fargo & Co. to pay $3.7 billion as a result of alleged widespread mismanagement of auto loans, mortgages and deposit accounts.

The CFPB said Wells Fargo “repeatedly misapplied loan payments, wrongfully foreclosed on homes and illegally repossessed vehicles, incorrectly assessed fees and interest, charged surprise overdraft fees, along with other illegal activity affecting over 16 million consumer accounts.”

Wells Fargo
WFC,
-2.01%
has been ordered to pay more than $2 billion in redress to consumers in addition to a $1.7 billion civil penalty for legal violations.

“Consumers were illegally assessed fees and interest charges on auto and mortgage loans, had their cars wrongly repossessed, and had payments to auto and mortgage loans misapplied by the bank,” the CFBP said.

Wells Fargo did not admit wrongdoing as part of the settlement.

Wells Fargo CEO Charlie Scharf said the settlement marks an “important milestone in our work to transform the operating practices of Wells Fargo and to put these issues behind us.”

As a result of the settlement, the CFPB will terminate a 2016 consent order, Wells Fargo said.

The settlement will also provide clarity and a path forward for termination of a 2018 consent order and will underscore that the CFPB “recognizes recent acceleration of efforts,” the bank said.

“The CFPB recognized that since 2020, the company has accelerated corrective actions and remediation, including to address the matters covered by today’s settlement,” the bank said in a statement.

Wells Fargo warned it will book an operating-loss expense of $3.5 billion, or $2.8 billion net of tax, when it reports fourth-quarter results on Jan. 13.

“Wells Fargo has made significant progress in strengthening its risk and control infrastructure over the past several years,” the bank said.

Jefferies analyst Ken Usdin said in a research note that the CFPB action marks a “positive step in the regulatory improvement process” for Wells Fargo.

But he said Wells Fargo’s plan to book a fourth-quarter operating loss of $3.5 billion does not mean that the bank’s accrual for probable and estimable losses (RPL), which it discloses every quarter, will go to zero.

“We would hope that probable and estimated losses would decline somewhat after [the fourth quarter] given the magnitude of today’s settlement,” Usdin said. “[Wells Fargo’s] separate announcement that it will book $3.5 billion of operating losses in [the fourth quarter] suggests that only some of the CFPB-specific settlement was already reserved for. But this sizable [fourth-quarter] number also means that [Wells Fargo] has been booking losses for other actions along the way that are still open-ended.”

Scharf has been CEO of Wells Fargo since late 2019 and has been focusing on bringing the megabank into regulatory compliance.

While an asset cap has remained in place for Wells Fargo since 2018 as punishment for its phony-accounts scandal, other regulatory matters are now in the rear-view mirror.

In December 2021, the Office of the Comptroller of the Currency (OCC) terminated a consent order issued in 2015 regarding add-on products that the bank sold to retail banking customers.

A CFPB consent order issued in 2016 regarding the bank’s retail practices expired in 2021, and a 2015 consent order from the OCC regarding Wells Fargo’s bank-secrecy and anti-money-laundering compliance was terminated in January 2021.

Finally, a CFPB consent order issued in 2015 regarding claims that the bank violated the Real Estate Settlement Procedures Act expired in January 2020.

Shares of Wells Fargo fell 0.3% on Tuesday. The stock is down 13.1% in 2022, compared with a 19.6% loss by the S&P 500
SPX,
+0.10%.

Also read: Fed banking supervisor eyes ‘holistic’ review of bank regulations while doubling down on protections they offer

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December 20, 2022
Ford Stock Falls. Don’t Let $1.7 Billion Truck Rollover Trial Distract You.

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Ford Motor

has a legal hearing set to start Monday related to a product liability case that resulted in a $1.7 billion punitive award against the auto maker. Investors seem to be a little nervous about the Georgia case. They probably don’t need to be — yet.

The award was part of a jury verdict that held, in part, Ford (ticker: F) was responsible for insufficient roof strength of its super-duty trucks. Two people were killed in 2014 after their super-duty truck rolled over. Ford maintains that its design is sound.

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December 19, 2022
House Jan. 6 select committee expected to advise Justice Department to hit Trump with criminal charges

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WASHINGTON (AP) — The House Jan. 6 committee is wrapping up its investigation of the violent 2021 U.S. Capitol insurrection, with lawmakers expected to cap one of the most exhaustive and aggressive congressional probes in memory with an extraordinary recommendation: The Justice Department should consider criminal charges against former President Donald Trump.

At a final meeting on Monday, the panel’s seven Democrats and two Republicans are poised to recommend criminal charges against Trump and potentially against associates and staff who helped him launch a multifaceted pressure campaign to try to overturn the 2020 election.

Context: What to expect as House Jan. 6 panel readies final report on Trump’s ‘attempted coup’

Also: Jan. 6 select committee to review referral recommendations from Cheney, Raskin, Schiff and Lofgren at Monday session

While a criminal referral is mostly symbolic, with the Justice Department ultimately deciding whether to prosecute Trump or others, it is a decisive end to a probe that had an almost singular focus from the start.

“I think the president has violated multiple criminal laws and I think you have to be treated like any other American who breaks the law, and that is you have to be prosecuted,” Rep. Adam Schiff, a Democrat from Southern California and a member of the panel, said Sunday on CNN’s “State of the Union.”

The panel, set to dissolve on Jan. 3 with the advent of a Republican-led House, has conducted more than 1,000 interviews, held 10 well-watched public hearings and collected more than a million documents since it launched in July 2021. As it has gathered the massive trove of evidence, the members have become emboldened in declaring that Trump is to blame for the violent attack on the Capitol by his supporters almost two years ago.

From the archives (June 2022): Fox News is notable exception as prime-time Jan. 6 committee hearing blankets TV airwaves

Also (July 2022): Trump White House aide Cassidy Hutchinson’s live testimony before Jan. 6 select committee was a TV ratings hit: Nielsen data

After beating their way past police, injuring many of them, the Jan. 6 rioters stormed the Capitol and interrupted the certification of President Joe Biden’s win, echoing Trump’s lies about widespread election fraud and sending lawmakers and others running for their lives.

The attack came after weeks of Trump’s efforts to overturn his defeat — a campaign that was extensively detailed by the committee in its multiple public hearings. Many of Trump’s former aides testified about his unprecedented pressure on states, federal officials and on Vice President Mike Pence to find a way to thwart the popular will.

“This is someone who in multiple ways tried to pressure state officials to find votes that didn’t exist, this is someone who tried to interfere with a joint session, even inciting a mob to attack the Capitol,” Schiff said. “If that’s not criminal, then I don’t know what it is.”

See: Justice Department urges judge to hold Trump’s legal team in contempt over Mar-a-Lago case

Members of the committee have said that the referrals for other individuals may also include ethics violations, legal misconduct and campaign finance violations. Lawmakers have suggested in particular that their recommended charges against Trump could include conspiracy to defraud the United States, obstruction of an official proceeding of Congress and insurrection.

On insurrection, Schiff said Sunday that “if you look at Donald Trump’s acts and you match them up against the statute, it’s a pretty good match.” He said that the committee will focus on those individuals — presumably Trump — for whom they believe there is the strongest evidence.

See: North Carolina state investigators say they’ve completed voter-fraud probe of Trump chief of staff Meadows

Also: Nevada elections department subpoenaed in Trump 2020 election investigation

And: Trump ally Kari Lake pursues formal challenge to loss in race for governor of Arizona

While a so-called criminal referral has no real legal standing, it is a forceful statement by the committee and adds to political pressure already on Attorney General Merrick Garland and special counsel Jack Smith, who is conducting an investigation into Jan. 6 and Trump’s actions.

The committee is also expected at the hearing to preview its massive final report, which will include findings, interview transcripts and legislative recommendations. Lawmaker have said a portion of that report will be released Monday.

“We obviously want to complete the story for the American people,” said Rep. Jamie Raskin, a Maryland Democrat and constitutional scholar who serves on the select committee. “Everybody has come on a journey with us and we want a satisfactory conclusion, such that people feel that Congress has done its job.”

The panel was formed in the summer of 2021 after Senate Republicans blocked the formation of what would have been a bipartisan, independent commission to investigate the insurrection. That opposition spurred the Democratic-controlled House to form a committee of its own. House Republican leader Kevin McCarthy of California, a Trump ally, decided not to participate after House Speaker Nancy Pelosi rejected some of his appointments. That left an opening for two anti-Trump Republicans in the House — Reps. Liz Cheney of Wyoming and Adam Kinzinger of Illinois — to join the seven Democrats serving on the committee.

From the archives (January 2021): Kevin McCarthy becomes poster boy for Republicans walking back their recent Trump criticism

While the committee’s mission was to take a comprehensive accounting of the insurrection and educate the public about what happened, they’ve also aimed their work at an audience of one: the attorney general. Lawmakers on the panel have openly pressured Garland to investigate Trump’s actions, and last month he appointed a special counsel, Smith, to oversee several probes related to Trump, including those related to the insurrection.

In court documents earlier this year, the committee suggested criminal charges against Trump could include conspiracy to defraud the United States and obstruction of an official proceeding of Congress.

Wall Street Journal: Trump tax returns may be released after House panel meets Tuesday

In a “conspiracy to defraud the United States,” the committee argues that evidence supports an inference that Trump and his allies “entered into an agreement to defraud the United States” when they disseminated misinformation about election fraud and pressured state and federal officials to assist in that effort. Trump still says he won the election to this day.

The panel also asserts that Trump obstructed an official proceeding, the joint session of Congress in which the Electoral College votes are certified. The committee said Trump either attempted or succeeded at obstructing, influencing or impeding the ceremonial process on Jan. 6 and “did so corruptly” by pressuring Pence to try to overturn the results as he presided over the session. Pence declined to do so.

The committee may make ethics referrals for five House Republicans — including McCarthy — who ignored congressional subpoenas from the panel. Those referrals are unlikely to result in punishment since Republicans are set to take over the House majority in January.

Read on: McCarthy’s long-held speaker ambition set to come to a head when new Congress convenes in January

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December 19, 2022

Canada Producer Prices Slip in November

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By Robb M. Stewart

OTTAWA–Producer prices in Canada eased in November, led by energy products, and Canadian companies paid slightly less for raw materials.

Statistics Canada’s industrial product price index fell 0.4% in November from the month before, when the index advanced 2.4%. On a 12-month basis, the producer-price index increased 9.7%.

Excluding energy products, producer prices were unchanged on-month in November, the data agency said.

Energy and petroleum products prices fell 2.7% from the month before, with prices for finished motor gasoline and diesel fuel both lower. Market data show that the downward trend continued into the first half of December, Statistics Canada said.

The price of softwood lumber was down for a fourth consecutive month in November, in part a reflection of a cooling housing market in Canada and the U.S., and prices for motorized and recreational vehicles also slipped from October, the agency said. Prices rose for primary non-ferrous metal products, in part due to the appreciation of the Canadian currency against the U.S. dollar.

The industrial product price index measures the prices that manufacturers in Canada receive once their goods leave the plant. It doesn’t reflect the final prices consumers pay for goods on store shelves.

The raw materials price index, which tracks prices paid by manufacturers, was down 0.8% from October, driven by a fall in crude energy products that more than offset the largest month-over-month increase in prices for natural gas since the agency began measuring the index in 1980. Compared with a year earlier, prices for raw materials were up 8.0% in November.

Annual consumer inflation held steady in October after peaking in June, Statistics Canada said last month. The agency will release November’s consumer-price index on Wednesday.

The Bank of Canada, like the Federal Reserve, has aggressively raised interest rates this year to tackle inflation but recently signaled the rate cycle may be coming to an end. The central bank this month again lifted its monetary policy rate, bringing the cumulative increase this year to 4 percentage points for a key rate of 4.25%, the highest level in almost 15 years.

Write to Robb M. Stewart at robb.stewart@wsj.com

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December 19, 2022

Home Page – MarketWatch

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Twitter voters favor Elon Musk stepping down, as Tesla shares rise

Nearly 58% or about 17.5 million Twitters votes were cast in favor of Elon Musk stepping down from the company, Musk’s Twitter account said Monday. Meanwhile shares of Tesla Inc. , the electric car company that Musk also runs, saw its stock rise by 4.7% in premarket trades. Musk has been running Twitter for 53 days, during which time he’s laid off a large percentage of the company’s work force and drawn criticism recently for suspending accounts of four journalists. The latest controversy revolved around whether Twitter would ban accounts that post links or usernames for certain “prohibited” third-party social media platforms. The social media platform announced the ban and then seemingly rescinded the rule about 12 hours later. During that issue, Musk then asked Twitter users to vote on whether he should continue to run the company.

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December 19, 2022
Twitter bans accounts that promote other social networks

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Twitter on Sunday announced it will ban accounts that post links or usernames for certain “prohibited” third-party social media platforms.

“We will no longer allow free promotion of certain social media platforms on Twitter,” Elon Musk’s company said in a tweet thread posted as much of the world was watching the World Cup final. “Specifically, we will remove accounts created solely for the purpose of promoting other social platforms and content that contains links or usernames for the following platforms: Facebook, Instagram, Mastodon, Truth Social, Tribel, Nostr and Post.”

In a blog post, Twitter said cross-promoted posts will still be allowed, but that “Accounts that are used for the main purpose of promoting content on another social platform may be suspended.” It did not specify how it will decide what an account’s main purpose is, but provided examples of banned content, such as: “follow me @username on Instagram,” “username@mastodon.social,” and “check out my profile on Facebook – facebook.com/username.”

The new policy triggered an immediate flurry of criticism by many Twitter users.

The move comes after a number of prominent tech journalists were suspended, then reinstated, last week for reporting on Twitter’s ban on an account that tracked Elon Musk’s private jet.

While Musk, who competed his $44 billion takeover of the company in October, has called himself a free-speech absolutist, many of his policies as Twitter’s owner and CEO have been to silence his critics.

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December 18, 2022

Tag: industrial news

New recommendation: Santa Claus rally

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