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Tag: Transportation/Logistics

  • Nvidia Stock Is Down. Blame Tesla.

    Nvidia Stock Is Down. Blame Tesla.

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    Shares of newly minted $1 trillion company


    Nvidia


    were taking it on the chin Monday, and investors searching for a reason should look to


    Tesla


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  • Tesla, Nvidia, Spirit Aerosystems, KB Home, Accenture, and More Market Movers

    Tesla, Nvidia, Spirit Aerosystems, KB Home, Accenture, and More Market Movers

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    Stock futures were falling following three straight days of losses for Wall Street. Federal Reserve Chairman Jerome Powell again will be delivering testimony before Congress. His comments on Wednesday that the central bank likely would be raising rates further this year pushed markets lower.

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  • Boeing Stock Likes the Paris Air Show. There Is a Catch.

    Boeing Stock Likes the Paris Air Show. There Is a Catch.

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    Boeing Stock Usually Wins From the Paris Air Show. This Is the Catch.

    Investors who are buying into the post-Covid recovery of commercial aerospace will get an important update about the industry, including the hot issues of sustainability and supply-chain snags, when the Paris Air Show kicks off on Monday.

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  • Virgin Galactic Stock Jumps as First Commercial Spaceflight Announced

    Virgin Galactic Stock Jumps as First Commercial Spaceflight Announced

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    Virgin Galactic


    shares were up more than 40% in premarket trading Friday after the company announced its first commercial flight into space. 


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  • Juneteenth holiday: Will banks be open? Is mail still being delivered?

    Juneteenth holiday: Will banks be open? Is mail still being delivered?

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    This Monday marks Juneteenth National Independence Day, or Juneteenth, a federal holiday honoring the 158th anniversary of the last enslaved Black Americans learning that they were free. 

    While the Emancipation Proclamation that freed U.S. slaves was supposed to go into effect in January 1863, the Civil War lasted another two years, and slavery persisted in places under Confederate control. It wasn’t until federal troops marched on Galveston, Texas and took over the state on June 19, 1865 — more than two months after the Civl War ended — that the remaining 250,000 or so slaves in Texas were finally freed. So the date came to be known as Juneteenth — a portmanteau of June 19th. 

    Read more: What is Juneteenth and why is it a holiday?

    President Joe Biden signed legislation naming Juneteenth a federal holiday in 2021 — the first time that a new federal holiday had been approved since Martin Luther King Jr. Day in 1983. So 2023 is the second year that Juneteenth will be observed as a federal holiday. And this means that the U.S. stock markets and many federal offices and parks will be closed, as well as plenty of workplaces and schools. But some services will still be running.

    So if you’re wondering if banks will be open on Juneteenth, or whether the post office is still delivering mail, then read on. 

    Is the stock market closed on Juneteenth? 

    Yes, U.S. stock markets — including the New York Stock Exchange, NASDAQ and bond markets, will be closed in observance of Juneteenth on Monday, June 19. 

    Will banks be closed on Juneteenth? 

    Yes, you should expect banks to be closed on Juneteenth. Federal Reserve banks and their branches are observing the holiday on Monday, and most other banks follow the Federal Reserve’s holiday schedule. For example, Bank of America
    BAC,
    +0.86%

    and JP Morgan Chase & Co.
    JPM,
    +1.13%

    have declared Juneteenth a holiday, so their branches are closed on Monday. But check with your local banking branch to be sure. 

    You can still use ATMs to withdraw or deposit cash, of course. And banking services like transferring money may also be available on your bank’s app or website. 

    Will the United States Postal Service deliver mail on Juneteenth? 

    No, post offices will be closed on June 19, and there will be no regular mail deliveries or packages.

    Some postal services may be available online, however, such as ordering stamps and other mail supplies, printing shipping labels or scheduling package pickups for after the holiday. You’ll just need a USPS.com account

    Are UPS and FedEx open on Juneteenth? 

    Yes. UPS
    UPS,
    +2.36%

    and FedEx
    FDX,
    +2.95%

    are operating normally on Monday, June 19, and their FedEx Office and UPS Store brick-and-mortar locations will be open for business, as well. 

    Are schools open on Juneteenth?

    Many U.S. schools are already in summer recess. But as far as summer classes or summer semesters go, schools tend to follow federal holiday schedules, so they are also probably closed. Check with your school district to be sure.

    What else is closed on Juneteenth? 

    All non-essential federal offices will be closed on Monday, and federal courthouses will be closed, as well. DMV locations will depend on the state, however: While New York’s DMV offices will be closed, for example, Florida’s DMV offices will be open. In fact, state-run offices may be open on Juneteenth, so check your local listings. 

    What about stores and restaurants? 

    Most retail, chain and grocery stores should be running on Juneteenth. Some companies including Target
    TGT,
    +3.46%
    ,
    Best Buy
    BBY,
    +3.05%

    and Nike
    NKE,
    -0.40%

    have declared Juneteenth a company holiday, for example, but their stores remain open. 

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  • Virgin Galactic shares rocket higher on plans for first commercial flight this month

    Virgin Galactic shares rocket higher on plans for first commercial flight this month

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    Shares of Virgin Galactic Holdings on Thursday made a scorching run higher after the space-travel company said it plans to begin offering commercial flights into space near the end of this month, a significant breakthrough for the nearly 20-year-old company founded by Richard Branson.

    Shares rocketed 44% after hours on the news.

    “We’re opening…

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  • ‘Greedflation’ is replacing inflation as companies raise prices for bigger profits, report finds

    ‘Greedflation’ is replacing inflation as companies raise prices for bigger profits, report finds

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    That’s the practice by many S&P 500 food and consumer companies of raising prices to protect what a new report calls their “cushioned corporate profits,” and it has enabled them to boost margins through the current inflationary period.

    Companies including Kimberly-Clark Corp.
    KMB,
    -0.45%
    ,
    PepsiCo Inc.
    PEP,
    -0.18%
    ,
    General Mills Inc.
    GIS,
    -0.88%

    and Tyson Foods Inc.
    TSN,
    -0.36%

    have on recent earnings calls touted their ability to raise prices, earning tidy profits and rewarding their shareholders as they go, according to the report from Accountable.US, a liberal-leaning consumer-advocacy group.

    And they have signaled their intention to continue to take “price actions” even as the Federal Reserve has hiked interest rates an unprecedented 10 times in an effort to tame inflation.

    “Higher interest rates haven’t stopped S&P companies, especially in the big food industry, from raising consumer prices despite reporting billions in extra net earnings and over a trillion dollars in new giveaways to wealthy investors,” said Liz Zelnick, director of economic security and corporate power at Accountable.US.

    “Corporate greed is a stubborn thing and requires serious action from Congress. The Fed has not seen an adequate return on its investment in a policy that has already created fissures in the economy that could lead to recession. It’s just not worth it,” she said. 

    Now read: Skip, pause or hike? A guide to what is expected from the Fed on Wednesday.

    Accountable.US is not alone in calling out price hikes on essentials including food. Walmart Inc.
    WMT,
    +0.73%

    is also unhappy with packaged-food companies that have steadily raised prices in dry grocery and consumable goods, according to a recent report from research company CFRA.

    “Given Walmart’s enormous bargaining power over its suppliers, we expect the retail giant to push back on further price increases from its packaged-food suppliers,” he said. That is expected to hurt margins, especially if volume growth does not recover.

    For more, see: Inflation in goods from cereal to soup has given a boost to consumer food stocks. Can Walmart help bring prices, both food and stock, down?

    May inflation data released Tuesday found that food prices were up 0.2% from April, after remaining flat for the previous two months. Food prices are up 6.7% over the last year. The food-at-home index is up 5.8% over the last year, while the index for cereals and bakery products is up 10.7%.

    Food prices started to rise about two years ago, when supply-chain issues and higher fuel and commodity prices led companies to pass some of those costs on to customers.

    But companies appear determined to raise prices even more, despite a decline in shipping and gas costs. Gasoline was down 5.6% in May from April and fuel oil fell 7.7%, according to consumer-price-index figures.

    Also read: U.S. inflation slows again, CPI shows, and might keep Fed on sidelines

    Kimberly-Clark executives told analysts on its recent earnings call that the company is able to “rapidly implement broad pricing actions” and acknowledged that “pricing has continued to be a big driver behind our top-line growth.”

    The company’s first-quarter earnings topped expectations and it raised guidance for the full year. That’s after it raised prices by 10% for a second straight quarter, driving margins wider by 340 basis points.

    Shareholders were rewarded to the tune of $425 million during the quarter, the Accountable.US report notes.

    See also: Colgate-Palmolive’s stock pops after earnings beat as company raises prices by double-digit percentage

    PepsiCo Chief Executive Ramon Laguarta told analysts on that company’s recent earnings call that most of its price increases are behind it.

    However, he said, “obviously, there are some markets, highly inflationary markets around the world, where we might have to take additional pricing. If you think about Argentina, Turkey, Egypt — those kinds of markets where the currencies are suffering. But the majority of our pricing is already done,” he said, according to a FactSet transcript.

    PepsiCo’s 2022 earnings rose 16.9% to nearly $9 billion, and it spent more than $7.6 billion on stock buybacks and dividends, with the former up 1,313% from 2021.

    General Mills, meanwhile, bragged about “getting smart about how we look at pricing” on its recent call. The parent of brands including Cheerios, Nature Valley, Blue Buffalo pet products and Pillsbury raised its fiscal 2023 guidance in February.

    And Tyson executives touted the “significant pricing power of our portfolio with a year-over-year increase of 7.6%.” Tyson’s latest quarter included a surprise loss, as it was hit by weak demand for meat, along with plant closures and job cuts.

    For more, see: Tyson Foods stock slides after meat producer swings to surprise loss

    But Tyson had net income of over $3.2 billion in 2022, up from $3 billion in 2021, and it rewarded shareholders with $1.35 billion in buybacks and dividends.

    For Accountable.US, it’s more compelling evidence that the Fed’s rate-hike strategy “has failed to root out one of the main drivers of inflation and should give the [Federal Open Market Committee] pause before lifting rates again this week to the detriment of jobs and the economy.”

    The Consumer Staples Select Sector SPDR exchange-traded fund
    XLP,
    +0.36%

    has fallen 1.6% to date in 2023, while the SPDR S&P Retail ETF
    XRT,
    +1.89%

    has gained 4.6%. The S&P 500
    SPX,
    +0.62%

    has gained 13% in the same period.

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  • UiPath Stock Is Flying This Year. Analyst Thinks the Party Is Over.

    UiPath Stock Is Flying This Year. Analyst Thinks the Party Is Over.

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    UiPath Stock Is Flying This Year. Analyst Thinks the Party Is Over.

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  • Bud Light troubles prompts call to buy stocks of Boston Beer, Constellation Brands

    Bud Light troubles prompts call to buy stocks of Boston Beer, Constellation Brands

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    Bud Light’s recent troubles should worsen in the summer, to the benefit of its competition’s brands, enough to turn Roth MKM analyst Bill Kirk bullish on the stocks of Constellation Brands Inc. and Boston Beer Co. Inc.

    Kirk raised on Tuesday his rating on Modelo, Corona, Pacifico beer parent Constellation Brands to buy, after being at neutral since January 2021, while boosting his stock price target to $270 from $216.

    Kirk said a lot of the market share Anheuser-Busch InBev SA’s Bud Light lost, amid backlash from the beer brand’s partnership with trans influencer Dylan Mulvaney, went to other premium light products, but he expects that to shift to Constellation’s favor.

    “As the weather warms, we expect the share gains for Modelo Especial and Corona to accelerate,” Kirk wrote in a note to clients.

    Constellation Brands’ stock
    STZ,
    +1.79%

    rose 1.5% in afternoon trading Tuesday toward the highest close since Dec. 12, 2022, while Anheuser-Busch shares
    BUD,
    -4.71%

    slumped 4.5% toward the lowest close since Nov. 10.

    Also read: Bud Light anti-trans backlash has some weighing potential ‘chilling effect’ on corporate LGBTQ+ support

    He noted that weekly scanner data has shown that Constellation’s beer portfolio outperformed the broader beer market by seven percentage points in early 2023, and that outperformance improved to 10 percentage points at the beginning of Bud Light’s market-share losses in April.

    “With temperatures warming and substitutability with Bud Light increasing, recent weeks have seen 13 [percentage points] of outperformance,” Kirk wrote. “This trend should continue as Bud Light [declines/peak] over summer holidays.”

    For Samuel Adams, Truly, Twisted Tea parent Boston Beer, Kirk raised his rating to buy, after being at neutral for at least the past three years. He raised his stock price target to $386 from $274.

    Boston Beer’s stock
    SAM,
    +5.37%

    jumped 6.8% toward the highest close since Feb. 15.

    Earlier this year, Kirk was concerned that Truly hard seltzer’s weakness continued, offsetting Twisted Tea’s success, and that gross margins weren’t improving even after moving more production in-house.

    Read more: Bud Light crisis: It’s unclear how U.S. volume drop will end, analysts say

    “Now, we believe seltzer and Truly will benefit in the summer from Bud Light share losses (occasion overlap increases with warmer weather) and gross margin lift from production shift will be realized in 2Q (given inventory days timing),” Kirk wrote.

    He believes that will shift investor focus away from Truly’s weakness and toward Boston Beer’s brands that are growing.

    And while Wall Street expects the trends Boston Beer saw in the first quarter to continue throughout 2023, Kirk now believes the company will beat expectations for shipments and depletions, and sees opportunities for margins to also beat forecasts.

    “While we had written at 1Q that the ‘timing of upside surprises remains unclear,’ we now believe the timing is Summer 2023,” Kirk wrote.

    Constellation Brands’ stock has gained 5.7% over the past three months and Boston Beer shares have advanced 4.8%, while Anheuser-Busch’s stock has dropped 10.1% and the S&P 500 index
    SPX,
    +0.00%

    has gained 5.9%.

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  • Why Intel’s stock is falling as Nvidia leads the rest of the semiconductor sector on a massive surge

    Why Intel’s stock is falling as Nvidia leads the rest of the semiconductor sector on a massive surge

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    Chip stocks experienced a significant surge Thursday in the wake of Nvidia Corp.’s upbeat commentary on AI-fueled demand — with one notable exception.

    Shares of Intel Corp.
    INTC,
    -5.52%

    were down more than 5% in afternoon trading Thursday, leading Dow Jones Industrial Average
    DJIA,
    -0.11%

    laggards by a wide margin, on a day when Nvidia Corp.’s
    NVDA,
    +24.37%

    stock was up 26% and the PHLX Semiconductor Index
    SOX,
    +6.81%

    was ahead 6%.

    Read: Chip index heads for highest close in 13 months as Nvidia momentum lifts semiconductor stocks

    Nvidia delivered a stratospheric beat on its quarterly revenue outlook Wednesday afternoon, with executives discussing how spending on artificial intelligence is already starting to drive sizable financial benefits for the company. That discussion has Wall Street thinking that many other chip makers will also be able to capitalize on the same wave of interest in the hot technology — shares of Monolithic Power Systems Inc.
    MPWR,
    +17.46%
    ,
    Advanced Micro Devices Inc.
    AMD,
    +11.16%

    and Taiwan Semiconductor Manufacturing Co.
    2330,
    +3.43%

    TSM,
    +12.00%

    all joined Nvidia in gaining by double-digit percentages in Thursday’s session.

    Intel, though, was a key outlier. Nvidia’s commentary seemed to make investors more worried that Intel is behind the curve on what some see as a massive technological revolution.

    Nvidia CFO on record-breaking forecast: ‘The inflection point of AI is here’

    Intel’s revenue and profits from central processing units look “even more at risk” after Nvidia’s report, while Intel doesn’t have “any real” competitive position in graphics processing units or generative-AI compute, wrote Mizuho’s Jordan Klein, a desk-based analyst associated with the company’s sales team and not its research arm.

    Nvidia’s earnings call “will reinforce the negative view that [Intel] and all their CPU share is a major loser and share donor to GPU, ASICs and lower power ARM design chips on the way,” Klein added.

    While Nvidia GPUs typically would run alongside CPUs from either Intel or AMD, Nvidia has been making inroads in CPUs. Chief Financial Officer Colette Kress said on Nvidia’s call that the company has seen “growing momentum for Grace with both CPU-only and CPU-GPU opportunities across AI and cloud and supercomputing applications.”

    Read: ‘Ride the Nvidia wave.’ Wall Street says the ‘undeniably pricey’ stock can keep roaring.

    Nvidia is perceived to be ahead of the pack in AI-related computing technology, but AMD is at least in a better position than Intel, with more of a one-stop shop across CPUs and GPUs. That’s likely why AMD’s stock is riding on Nvidia’s coattails Thursday, up more than 10% in afternoon action.

    AMD is “the only other real GPU supplier,” Klein wrote, though the company “could lose CPU spend in process and [has] a far way to go to catch [Nvidia].”

    In his view, it “will take some time for more advanced and higher performance GPU and software platform to ramp and really drive upside potential” at AMD. “But seeing how fast and much [Nvidia] benefited, few will want to wait and see how long that takes for AMD.”

    A more clear beneficiary, he noted, is Taiwan Semiconductor, whose stock was up more than 12% Thursday. You “cannot get any of these GPUs, inference, etc. without their fabs,” according to Klein.

    As for Intel, Klein likes that the company is approaching a second-quarter bottom and positioned to capitalize on a personal-computer refresh, but he said its stock “feels totally stuck at best and could get shorted.”

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  • Gas will be much cheaper this Memorial Day Weekend. Now, for all the bad news.

    Gas will be much cheaper this Memorial Day Weekend. Now, for all the bad news.

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    Traveling this Memorial Day Weekend? Put some deep breaths on your checklist.

    Americans should brace for jammed highways and long airport lines with more people projected to drive and fly this holiday weekend compared to last year, experts say.

    Gas is $1 cheaper than it was at the same point last year and airline passengers aren’t flinching from pricey tickets, still powered by the pent-up demand to see family and friends as the pandemic recedes.

    “The roads are going to be pretty packed,” said AAA spokeswoman Aixa Diaz. “The bottom line is, the later you wait in the day, the worse it is — unless you drive at night.”

    “If there ever was a time you wanted to get to the airport early, it’s this one,” she added.

    “Whether driving or flying, pack your patience and prepare for heavy traffic on the road and at the airport,” said Erika Richter, spokeswoman for the American Society of Travel Advisors.

    AAA is projecting that 37.1 million people will be driving at least 50 miles this upcoming weekend. That’s 2 million more people traveling by automobile compared to last year.

    AAA is projecting that 37.1 million people will be driving at least 50 miles this upcoming weekend. That’s 2 million more people traveling by automobile compared to last year.

    They’ll be driving on cheaper gas. Nationally, a gallon of gas averaged $3.57 on Thursday, down from $4.59 one year ago, AAA said.

    Read also: Why this falling fuel price is stoking recession fears even as prime gas-demand season nears

    Meanwhile, nearly 3.4 million airline passengers are projected to fly this weekend, according to AAA. That would surpass pre-pandemic levels, when 3.2 million people flew over the Memorial Day Weekend in 2019.

    All together, 42.3 million people are expected to travel this weekend via cars, planes, buses, trains, according to AAA estimates. That’s higher than the 39.6 million who traveled last Memorial Day Weekend, and just under 2019 levels.

    Three major airlines, American Airlines
    AAL,
    +4.20%
    ,
    United
    UAL,
    +1.76%

    and Delta Air Lines
    DAL,
    +2.35%
    ,
    are expected to handle nearly 60% of the flights, according to a Thursday note from TD Cowen.

    Like others, analysts at TD Cowen, a division of TD Securities, say it’s going to be a brisk summer travel season.

    “We continue to see strong demand for air travel, with this summer’s focus on international [travel]. Remember, the U.S. government did not eliminate testing until mid-June last year, after most people planned their vacations,” they wrote.

    Related: Is it possible to book a cheap summer flight? Here are 5 tricks to save money.

    When to expect the worst?

    Friday is the day when roads and airports are going to be the busiest.

    On the roads, congestion is going to peak that day from 3:00 p.m. to 6:00 p.m., according to INRIX, a traffic-data analytics firm.

    Inside airports, approximately 2.6 million people will pass through Transportation Security Administration checkpoints that day, the agency said.

    During last year’s Memorial Day Weekend, 2.38 million people passed through TSA checkpoints, the agency’s data showed.

    Teens, aged 13-17, can now go with TSA PreCheck-enrolled parents and guardians, when they are on the same reservation and when the TSA PreCheck indicator shows on the child’s pass. Children ages 12 and under can still walk through checkpoints with their enrolled parents or guardians.

    Once getting on the plane, don’t count on having a nearby spare seat. Seating capacity is currently slated to be 17% higher than last Memorial Day Weekend, according to the travel app Hopper.com.

    This weekend, last-minute tickets are averaging $273, and that’s around $100 less than ticket-price averages at the same point last year and slightly cheaper than 2019 levels, Hopper.com’s data said. International travel is a different story. Fares to Europe, for example, are more than 50% higher than last year, according to Hopper.com.

    What happens after Friday?

    On the roads, there’s little extra traffic expected on Saturday and Sunday, according to projections from INRIX, a transportation analytics company. On Monday, the worst traveling time is 12 p.m. to 3 p.m. The window for less traffic that day is before 10 a.m., INRIX noted.

    As for flights, Richter said airlines and operators “are obligated to share the latest information if it impacts your travel.”

    Downloading smartphone apps for your airline, activating the notifications and opting for text and email alerts will also help keep you abreast of any last-minute changes, she said.

    Through March, less than 2% of scheduled domestic flights have been canceled, the U.S. Department of Transportation said Tuesday. That’s below last year’s 2.7% cancellation average and the 4.1% rate for the first three months of 2022, the department noted.

    A Transportation Department dashboard shows which airline carriers have committed to passenger-friendly accommodations when delays and cancellations occur. For example, some — but not all — airlines will rebook your flight with a partner airline at no additional cost.

    But Richter said the volume and potentials for travel snags this Memorial Day Weekend could be a preview for the months to come. “Travel delays will be inevitable this summer, so make sure you are planning ahead,” she said.

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  • Ryanair Swung to FY 2023 Net Profit as Revenue Beat Consensus on Higher Traffic, Ancillaries — Update

    Ryanair Swung to FY 2023 Net Profit as Revenue Beat Consensus on Higher Traffic, Ancillaries — Update

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    By Anthony O. Goriainoff

    Ryanair Holdings said Monday that it swung to a net profit for fiscal 2023 with revenue beating consensus due to a 74% rise in traffic and higher ancillary revenue, and that it was optimistic it would deliver a modest on-year profit increase in fiscal 2024.

    The low cost carrier said its guidance was nonetheless dependent on the avoidance of adverse events such as the war in Ukraine or further Boeing delivery delays.

    Ryanair said that although it expects traffic to grow to around 185 million in fiscal 2024, recent delivery delays from Boeing may push some of this into its lower-yielding second half, slightly reducing this target.

    For the year ended March 31 net profit was 1.31 billion euros ($1.42 billion) compared with a net loss of EUR240.8 million for fiscal 2022 and net profit consensus of EUR1.35 billion, taken from FactSet and based on 17 analysts’ forecasts.

    Revenue was EUR10.78 billion, compared with EUR4.80 billion the year before. Ancillary revenue rose to EUR3.84 billion from EUR2.15 billion the year before. Fares for the period were up 10% on prepandemic levels, the company said.

    Pre-exceptional profit after tax–its preferred metric–was EUR1.43 billion, compared with a loss of EUR355 million last year. .

    The company said its load factor–a measure of how full a plane is–stood at 93%, compared with 82% the year before, and that traffic reached 168.6 million passengers, a 13% increase on the levels seen in fiscal 2020.

    Although the fuel bill for the year will increase by more than EUR1 billion on higher fuel prices, the company said it was optimistic that revenue for the year will grow sufficiently to cover this and deliver a modest on-year profit increase.

    “While we continue to enjoy a significant cost advantage over competitor airlines, we expect to record a modest increase in unit costs, excluding fuel, as annualized crew pay restoration, higher crew ratios this summer and increased, enroute charges will not be fully offset by Boeing 737 Gamechanger deliveries in the first half,” the company said.

    Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

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  • Deutsche Bank to settle Jeffrey Epstein suit for $75 million: report

    Deutsche Bank to settle Jeffrey Epstein suit for $75 million: report

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    Deutsche Bank AG will pay $75 million to settle a proposed class-action lawsuit claiming it aided Jeffrey Epstein’s sex-trafficking ring, the Wall Street Journal reported Wednesday night.

    The suit was filed by lawyers on behalf of an anonymous victim and others who accused the financier, who died by suicide in federal lockup in 2019, of sexual abuse and trafficking. The suit claimed Deutsche Bank
    DB,
    +1.92%

    ignored red flags and did business with Epstein for five years despite knowing he was using the money from his accounts to further his sex trafficking.

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  • 20 AI stocks expected to post the highest compound annual sales growth through 2025

    20 AI stocks expected to post the highest compound annual sales growth through 2025

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    Things move quickly in the world of artificial intelligence. It is easy to sit back and complain about developments that could be disruptive, but sometimes investors are best served by putting emotions aside and observing new developments and how they affect markets. Could AI developments and related trends make you a lot of money?

    Below is a new screen showing a group of AI-oriented companies expected to increase their sales most rapidly through 2025, based on consensus estimates among analysts polled by FactSet. Then we show expected revenue growth rates for the largest AI-oriented companies in the screen.

    Over the long haul, many businesses might perform more efficiently by employing AI. Maybe this technology can create an economic revolution similar to the one that moved the majority of the working population away from agricultural labor during the 19th and 20th centuries.

    Back in February, we screened 96 stocks held by five exchange-traded funds focused on AI and related industries and listed the 20 that analysts thought would rise the most over the following 12 months.

    Three months is a long time for AI, and the shakeout hasn’t even started.

    Read: Congress and tech seem open to regulating AI efforts, but that doesn’t mean it will happen

    There is no way to predict how politicians will react to perceived or real threats of AI and machine learning. And the largest U.S. tech players are doing everything they can to employ the new technology and remain dominant. But that doesn’t mean they will grow more quickly than smaller AI-focused players.

    A new AI stock screen

    Once again we will begin a screen with these five ETFs:

    • The Global X Robotics & Artificial Intelligence ETF
      BOTZ,
      +0.97%

      BOTZ was established 2016 and has $1.8 billion in assets under management. The fund tracks an index of companies listed in developed markets that are expected to benefit from the increased utilization of robotics and AI. There are 44 stocks in the BOTZ portfolio, which is weighted by market capitalization and rebalanced once a year. Its largest holding is Intuitive Surgical Inc.
      ISRG,
      +0.53%
      ,
      which makes up 10% of the portfolio, followed by Nvidia Corp.
      NVDA,
      +3.30%

      at 9.4%.

    • The iShares Robotics and Artificial Intelligence Multisector ETF
      IRBO,
      +1.64%

      holds 116 stocks that are equal-weighted, as it tracks a global index of companies that derive at east 50% of revenue from robotics or AI, or have significant exposure to related industries. This ETF was launched in 2018 and has $304 million in assets.

    • The $246 million First Trust Nasdaq Artificial Intelligence & Robotics ETF
      ROBT,
      +1.83%

      has 107 stocks in its portfolio, with a modified weighting based on how directly companies are involved in AI or robotics. It was established in 2018.

    • The Robo Global Artificial Intelligence ETF
      THNQ,
      +1.81%

      has $26 million in assets and was established in 2020. I holds 69 stocks and isn’t concentrated. It uses a scoring system to weight its holdings by percentage of revenue derived from AI, with holdings also subject to minimum market capitalization and liquidity requirements.

    • The newest ETF on this list is the WisdomTree Artificial Intelligence and Innovation Fund
      WTAI,
      +2.42%
      ,
      which was established in December and has $13 million in assets and holds 73 stocks in an equal-weighted portfolio. According to FactSet, stocks are handpicked and selected companies “generate at least 50% of their revenue from AI and innovation activities, including those related to software, semiconductors, hardware technology, machine learning and innovative products.”

    Altogether and removing duplicates, the five ETFs hold 270 stocks of companies in 23 countries. We first narrowed the list to 197 covered by at least nine analysts and for which consensus sales estimates are available through calendar 2025. We used calendar-year estimates because some companies have fiscal years that don’t match the calendar.

    Here are the 20 screened AI-related companies expected by analysts to have the highest compound annual growth rates (CAGR) for sales from 2023 through 2025. Sales estimates are in millions of U.S. dollars. The list also shows which of the above five ETFs holds each stocks.

    Company

    Ticker

    Estimated sales – 2023 ($mil)

    Estimated sales – 2024 ($mil)

    Estimated sales – 2025 ($mil)

    Two-year estimated sales CAGR through 2025

    Held by

    BioXcel Therapeutics Inc.

    BTAI,
    -2.47%
    $5

    $39

    $121

    411.5%

    WTAI

    Luminar Technologies Inc. Class A

    LAZR,
    +8.82%
    $86

    $266

    $588

    161.0%

    ROBT, WTAI

    BlackBerry Ltd.

    BB,
    +6.01%
    $685

    $769

    $1,925

    67.6%

    ROBT

    Credo Technology Group Holding Ltd.

    CRDO,
    +10.29%
    $183

    $259

    $363

    40.9%

    IRBO

    SentinelOne Inc. Class A

    S,
    +1.05%
    $619

    $881

    $1,176

    37.9%

    WTAI

    Wolfspeed Inc.

    WOLF,
    +5.02%
    $982

    $1,323

    $1,860

    37.6%

    WTAI

    SK hynix Inc.

    000660,
    +1.66%
    $18,319

    $27,899

    $34,542

    37.3%

    WTAI

    Mobileye Global Inc. Class A

    MBLY,
    +1.67%
    $2,109

    $2,782

    $3,920

    36.3%

    ROBT, WTAI

    Snowflake Inc. Class A

    SNOW,
    +1.42%
    $2,811

    $3,863

    $5,139

    35.2%

    IRBO, THNQ, WTAI

    Lemonade Inc.

    LMND,
    +8.08%
    $395

    $471

    $712

    34.2%

    THNQ, WTAI

    Nio Inc. ADR Class A

    NIO,
    +1.39%
    $11,874

    $16,733

    $21,304

    33.9%

    ROBT

    Stem Inc.

    STEM,
    +4.88%
    $607

    $833

    $1,055

    31.8%

    WTAI

    Upstart Holdings Inc.

    UPST,
    +10.37%
    $547

    $768

    $938

    31.0%

    BOTZ, WTAI

    Cloudflare Inc. Class A

    NET,
    +5.84%
    $1,284

    $1,669

    $2,194

    30.7%

    THNQ

    Samsara Inc. Class A

    IOT,
    +1.42%
    $830

    $1,062

    $1,364

    28.2%

    THNQ

    Ambarella Inc.

    AMBA,
    +3.45%
    $287

    $355

    $472

    28.2%

    IRBO, ROBT, THNQ, WTAI

    iflytek Co. Ltd. Class A

    002230,
    -1.34%
    $3,561

    $4,582

    $5,851

    28.2%

    THNQ

    Tesla Inc.

    TSLA,
    +4.41%
    $99,558

    $128,412

    $161,061

    27.2%

    ROBT, THNQ, WTAI

    CrowdStrike Holdings Inc. Class A

    CRWD,
    +2.40%
    $2,935

    $3,793

    $4,739

    27.1%

    THNQ, WTAI

    PB Fintech Ltd.

    543390,
    +1.39%
    $358

    $462

    $573

    26.5%

    IRBO

    Source: FactSet

    Click the tickers for more about each company or ETF.

    Click here for Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote pages.

    We have screened for expected revenue growth, rather than for earnings or cash flow, because in a newer tech-oriented business area, investors are most likely to consider the top line as companies sacrifice profits to build market share.

    It is important to do your own research if you consider purchasing any individual stock, to form your own opinion about a company’s ability to remain competitive over the long term. Starting from the top of the list, BioXcel Therapeutics Inc.
    BTAI,
    -2.47%

    is expected to show exponential sales growth, but that is from a low expected baseline this year.

    What about the largest AI-related companies held by these ETFs?

    Here are the largest 20 companies in the screen by market capitalization, ranked by expected sales CAGR from 2022 through 2025. Once again the sales estimates are in millions of U.S. dollars, but the market caps are in billions.

    Company

    Ticker

    Estimated sales – 2023 ($mil)

    Estimated sales – 2024 ($mil)

    Estimated sales – 2025 $mil)

    Two-year estimated sales CAGR through 2025

    Market Cap ($bil)

    Held by

    Tesla Inc.

    TSLA,
    +4.41%
    $99,558

    $128,412

    $161,061

    27.2%

    $528

    ROBT, THNQ, WTAI

    Nvidia Corp.

    NVDA,
    +3.30%
    $29,839

    $36,877

    $46,154

    24.4%

    $722

    BOTZ, IRBO, ROBT, THNQ, WTAI

    Taiwan Semiconductor Manufacturing Co. Ltd. ADR

    TSM,
    +5.83%
    $71,434

    $86,284

    $101,112

    19.0%

    $445

    ROBT, WTAI

    Advanced Micro Devices Inc.

    AMD,
    +2.23%
    $22,976

    $26,823

    $30,359

    15.0%

    $163

    IRBO, ROBT, THNQ, WTAI

    ASML Holding NV ADR

    ASML,
    +2.83%
    $28,974

    $32,374

    $37,796

    14.2%

    $263

    THNQ, WTAI

    Microsoft Corp.

    MSFT,
    +0.95%
    $223,438

    $251,028

    $282,397

    12.4%

    $2,318

    IRBO, ROBT, THNQ, WTAI

    Samsung Electronics Co. Ltd.

    005930,
    -0.61%
    $200,595

    $227,286

    $252,129

    12.1%

    $292

    IRBO, WTAI

    Amazon.com Inc.

    AMZN,
    +1.85%
    $559,438

    $626,549

    $702,395

    12.1%

    $1,164

    IRBO, ROBT, THNQ, WTAI

    Adobe Inc.

    ADBE,
    +3.34%
    $19,470

    $21,784

    $24,276

    11.7%

    $158

    IRBO, THNQ

    Netflix Inc.

    NFLX,
    +1.86%
    $33,915

    $38,067

    $42,275

    11.6%

    $148

    IRBO, THNQ

    Tencent Holdings Ltd.

    700,
    -0.58%
    $88,727

    $99,212

    $110,556

    11.6%

    $422

    IRBO, ROBT

    Salesforce Inc.

    CRM,
    +2.37%
    $34,392

    $38,273

    $42,786

    11.5%

    $205

    IRBO, THNQ

    Alphabet Inc. Class A

    GOOGL,
    +1.11%
    $299,810

    $333,077

    $369,195

    11.0%

    $710

    IRBO, ROBT, THNQ, WTAI

    Intel Corp.

    INTC,
    -1.20%
    $51,060

    $57,799

    $62,675

    10.8%

    $122

    IRBO, ROBT

    Meta Platforms Inc. Class A

    META,
    +1.53%
    $125,901

    $139,545

    $154,259

    10.7%

    $528

    IRBO, WTAI

    Alibaba Group Holding Ltd. ADR

    BABA,
    +2.17%
    $134,140

    $148,206

    $162,199

    10.0%

    $235

    ROBT, THNQ

    Texas Instruments Inc.

    TXN,
    +1.20%
    $17,941

    $19,433

    $20,799

    7.7%

    $148

    IRBO

    Apple Inc.

    AAPL,
    +0.36%
    $390,845

    $416,761

    $445,956

    6.8%

    $2,706

    IRBO, WTAI

    Siemens Aktiengesellschaft

    SIE,
    +2.55%
    $84,681

    $89,145

    $93,925

    5.3%

    $130

    ROBT

    Johnson & Johnson

    JNJ,
    -0.20%
    $98,761

    $100,990

    $103,870

    2.6%

    $414

    ROBT

    Source: FactSet

    Tech-stock picks that are small and focused: This fund invests in unsung innovators. Here are 2 top choices.

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  • Warren Buffett’s Berkshire Hathaway switched stakes in two banks, and the stocks head in opposite directions

    Warren Buffett’s Berkshire Hathaway switched stakes in two banks, and the stocks head in opposite directions

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    Warren Buffett’s Berkshire Hathaway Inc. made a change in banking targets for investment, sending two banks’ shares in opposite directions Monday afternoon.

    Capital One Financial
    COF,
    +3.22%

    shares rallied more than 5% in after-hours trading while Bank of New York Mellon Corp.
    BK,
    +1.37%

    sold off in the extended session Monday after filings with the Securities and Exchange Commission showed Berkshire
    BRK.B,
    +0.32%

    BRK.A,
    +0.96%

    switched its position. The quarterly filing showed a new stake of 9.9 million shares in Capital One as Berkshire sold off its 25.1 million-share stake in Bank of New York Mellon.

    At Berkshire’s annual meeting, Buffett weighed in on recent scares for regional banks.

    “In terms of owning banks, events will determine their future and you’ve got politicians involved, you’ve got a whole lot of people who don’t really understand how the system works,” he said.

    Other changes included an increased stake in HP Inc.
    HPQ,
    +2.32%
    ,
    which grew by 16% to about 121 million shares. That growth was part of a combination of the holdings of General Re Corp., which Berkshire has owned since 1998 but had previously reported its holdings separately as part of New England Asset Management Inc.

    “Beginning with the Form 13F to be filed later today, the holdings of Gen Re will be included in Berkshire’s 13F filing,” Berkshire said in a news release earlier Monday. “The NEAM Form 13F filings will no longer include Gen Re’s holdings but they will continue to include NEAM client holdings where NEAM is acting as an investment manager.”

    Other holdings affected by that change included Apple Inc.
    AAPL,
    -0.29%
    ,
    Bank of America Inc.
    BAC,
    +2.07%

    and Chevron Corp.
    CVX,
    +0.37%
    ,
    Berkshire said in its news release.

    Other stocks that Berkshire made moves with during the first three months of the year included the former Restoration Hardware — RH
    RH,
    +1.89%

    shares fell 3% after Berkshire disclosed selling off its 2.4 million stake. Berkshire also officially reported selling of its 8.3 million stake in Taiwan Semiconductor Manufacturing Co.
    TSM,
    +2.67%
    .

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  • Biden proposes cash compensation from airlines for flight cancellations or major delays

    Biden proposes cash compensation from airlines for flight cancellations or major delays

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    President Joe Biden rolled out a plan on Monday that targets how airlines handle flight cancellations and significant delays that are within a carrier’s control.

    Biden said his administration will propose a new regulation later this year that would require airlines to provide cash compensation in addition to refunds and amenities for stranded passengers.

    “Airline…

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  • Chegg, Arista, Uber, Pfizer, DuPont, and More Stock Market Movers

    Chegg, Arista, Uber, Pfizer, DuPont, and More Stock Market Movers

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    • Order Reprints
    • Print Article

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  • Air Travel Is Booming. 2 Stocks to Buy That Aren’t Airlines.

    Air Travel Is Booming. 2 Stocks to Buy That Aren’t Airlines.

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    Air Travel Is Booming. 2 Stocks to Buy That Aren’t Airlines.

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  • SpaceX scrubs Starship test launch minutes before blastoff

    SpaceX scrubs Starship test launch minutes before blastoff

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    SpaceX scrubbed the eagerly anticipated test launch of its giant Starship rocket minutes before blastoff Monday.

    The launch from SpaceX’s Starbase facility in Boca Chica, Texas, would have been the first flight test to integrate SpaceX’s Starship and Super Heavy rockets. The largest rocket ever built, Starship is designed to play a key role in returning humans to the Moon, as well as in future Mars exploration.

    SpaceX scrubbed the uncrewed launch attempt about nine minutes before blastoff, apparently because of an issue related to its stage 1 rocket.

    “A pressurant valve appears to be frozen, so unless it starts operating soon, no launch today,” tweeted SpaceX CEO Elon Musk.

    Related: Elon Musk’s SpaceX pulls another $1.7 billion in funding

    “Standing down from today’s flight test attempt; team is working towards next available opportunity,” SpaceX tweeted.

    When it scrubbed the launch, SpaceX transitioned to a “wet dress rehearsal,” continuing to load propellant. SpaceX also continued its countdown to T-minus 40 seconds.

    “Learned a lot today, now offloading propellant, retrying in a few days,” tweeted Musk.

    “Unfortunately, due to needing to recycle the propellant, we’re looking at a minimum of 48 hours until we are able to attempt this flight test again,” said Kate Tice, SpaceX’s quality systems engineering manager, during the launch livestream.

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  • Tesla, Netflix earnings due: Cheaper cars, cheaper content, more workout videos, as ‘earnings recession’ seems likely

    Tesla, Netflix earnings due: Cheaper cars, cheaper content, more workout videos, as ‘earnings recession’ seems likely

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    For anyone watching Netflix, the streaming services’ recent moves to cut costs could mean fewer films, lower-budget shows and — depending on your subscription — more ads. For anyone buying a Tesla, its moves to cut prices will make it easier on customers, but harder on profit-seeking investors.

    With both companies reporting results this week, Wall Street will get a look at who still wants a Tesla, amid growing competition, and what kind of growth and viewership anyone can expect from Netflix, as it recalibrates its streaming ambitions and focuses more on profitability following years of rapid growth.

    Netflix Inc.
    NFLX,
    -2.18%
    ,
    which reports first-quarter results on Tuesday, is trying to crack down on shared accounts, and analysts polled by FactSet see subscriptions coming in well below the average. However, BofA analyst Jessica Reif Ehrlich said that first-quarter results would likely “mark the low point” of the year, “reflecting the initial impact of password sharing efforts in select markets.”

    Netflix will report as shareholders’ growing influence over the streaming universe raises questions over what shows and films get streamed, and for how long, as Wall Street tries to wring more bottom-line gains from an industry that boomed before and during the pandemic but burned cash and got crowded in the process. Netflix, along with Walt Disney Co.
    DIS,
    -0.93%
    ,
    have laid off employees, while Warner Brothers Discovery Inc.
    WBD,
    -1.85%

    fuses its streaming holdings together.

    “We expect Netflix to continue reining in spending, particularly by seeking alternatives to its past practices,” Wedbush analysts Alicia Reese and Michael Pachter wrote in a research note on Thursday. “The company appears to us to be producing fewer feature length films, which we have always viewed as a poor investment, and appears focused on lower cost television content.”

    “We are equally encouraged that Netflix is looking at low-cost content like workout videos, which we believe will present a lot of value to subscribers at very low cost,” they added later.

    The analysts said that they felt Netflix was well positioned, as other streamers rethink their approach to expansion and financials. And they said Netflix “should be valued as an immensely profitable, slow-growth company.” They also said that Netflix’s decision to launch a cheaper ad-supported option was a “great decision” after growth stalled in the U.S. and Canada and the company’s business in Europe, the Middle East and Africa reaches the saturation point.

    For Tesla Inc.
    TSLA,
    -0.48%
    ,
    which reports results on Wednesday, the focus for investors will be on price-cutting and its impact on margins. Still, Potter, an analyst at Piper Sandler, has said Tesla is on a “warpath” and “maintaining its aggressive approach to pricing,” and said investors “should expect relentless price cuts to continue.”

    Base prices for Tesla’s Model S and Model X have fallen by around $5,000, MarketWatch has noted, as the electric-vehicle maker tries to stimulate demand. The company is also selling a more affordable Model Y SUV.

    “Tesla concerns on pricing and a race to the bottom persisted as general sentiment on the stock is souring given recent price cuts after a brief period of stabilization,” TD Cowen analyst Jeffrey Osborne said in a note.

    Tesla will report as the Biden administration tries to take a harder stance on auto pollution. The EPA recently proposed new emissions restrictions intended to hasten electric-vehicle usage, by incrementally curtailing tailpipe emissions each year for vehicle model years 2027 through 2032. However, some analysts said the measures would push prices higher for regular and electric vehicles.

    This week in earnings

    The first-quarter earnings reporting season will pick up steam in the week ahead, with 60 S&P 500 companies, including six from the Dow Jones Industrial Average
    DJIA,
    -0.42%
    ,
    reporting quarterly results, according to FactSet. Those companies will report as Wall Street analysts remain pessimistic about results for the quarter, and the prospect of another so-called “earnings recession” in which profits contract for at least two straight quarters.

    “As of today, the S&P 500 is reporting a year-over-year decline in earnings of -6.5% for the first quarter, which would mark the largest earnings decline reported by the index since Q2 2020 (-31.6%) and the second straight quarter the index has reported a decline in earnings,” FactSet Senior Earnings Analyst John Butters said in a report on Friday.

    After investors cheered JPMorgan Chase & Co.’s
    JPM,
    +7.55%

    quarterly results on Friday — despite Silicon Valley Bank’s collapse and broader recession anxieties — other banking giants, like Bank of America Corp.
    BAC,
    +3.36%
    ,
    Goldman Sachs Group Inc.
    GS,
    +1.44%

    and Morgan Stanley
    MS,
    +1.19%

    report during the week ahead. So does Johnson & Johnson
    JNJ,
    -0.16%
    ,
    after it agreed to pay as much as $8.9 billion to settle scores of lawsuits alleging that its talc baby powder was linked to cancer. Charles Schwab Corp.
    SCHW,
    -1.40%
    ,
    United Airlines Holdings Inc.
    UAL,
    -0.71%

    and AT&T Inc.
    T,
    -0.15%

    also report during the week.

    The calls to put on your calendar

    Supply-chain update, anyone? Shipping rates have fallen. Labor tensions have risen. Railroad safety is under scrutiny. Elsewhere in that industry, hedge funders are applying pressure. Memories of 2021’s supply-chain meltdown are still fresh after it led to shipping delays and put the low-work labor that fuels much of that distribution network under a spotlight.

    At any rate, trucking and logistics company J.B. Hunt Transportation Services Inc.
    JBHT,
    +1.23%

    reports on Monday, while railroad giant CSX Corp.
    CSX,
    +0.13%

    reports on Thursday. Both companies report after a drop-off in demand for goods last year, as inflation remolded consumers’ buying habits. They also report after rail workers threatened to strike over what they said were inadequate sick-time policies. More recently, a group representing the terminal operators at the ports of Los Angeles and Long Beach alleged that dockworkers were disrupting daily operations at the two massive import gateways, as the workers’ union and the terminal operators try to work out a contract. The quarterly financial reports and earnings calls will offer a look at what the year ahead has in store.

    The number to watch

    Credit-card transactions, charge-offs: Credit-card providers Discover Financial Services
    DFS,
    +0.68%

    and American Express Co.
    AXP,
    +0.57%

    report Wednesday and Thursday, respectively. The companies will report after Discover took a hit in January after it forecast credit-card net charge-offs — a measure of debt a company doesn’t think it’ll get back — that were worse than what Wall Street expected. Similar to the results from the big banks, the results from American Express and Discover will tells us how much consumers are still spending, and whether more are falling behind on their bills, as recession anxieties prevail.

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