ReportWire

Tag: Visa Inc. Cl A

  • S&P 500's year-end rally lifts 51 stocks to a record close

    S&P 500's year-end rally lifts 51 stocks to a record close

    [ad_1]

    It has been a record day for 10% of the S&P 500.

    A group of 51 stocks in the benchmark equity index swept to record finishes on Tuesday, the most since April 20, 2022, according to a tally from Dow Jones Market Data.

    It was a record day for 51 stocks in the S&P 500.


    Dow Jones Market Data

    Stocks that logged a record close on Tuesday included Allstate Corp
    ALL,
    +0.90%    ,
    Costco Wholesale
    COST,
    +0.90%    ,
    D.R. Horton, Inc.
    DHI,
    +0.65%    ,
    Mastercard
    MA,
    +1.21%    ,
    T-Mobile US Inc.,
    TMUS,
    +1.00%
    Visa Inc.
    V,
    +1.19%
    and Waste Management Inc.,
    WM,
    +1.85%
    among others.

    Equities have been in a year-end rally mode, driven higher by tumbling benchmark yields that finance much of the U.S. economy and expectations of coming interest-rate cuts.

    The 10-year Treasury rate
    BX:TMUBMUSD10Y
    fell to 4.2% on Tuesday from a high of about 5% in October.

    The Dow Jones Industrial Average
    DJIA
    on Tuesday ended at its third-highest level on record, while the S&P 500 index
    SPX
    and Nasdaq Composite Index
    COMP
    added to a string of new closing highs for 2023. The Dow finished 0.6% away from its record close logged almost two years ago, while the S&P 500 was only 3.2% below its close from the same period, according to Dow Jones Market Data.

    The push higher for stocks followed inflation data for November that showed price pressures continued to ease from peak levels, but still were above the Fed’s 2% annual target.

    The consumer-price index pegged the annual rate of inflation at 3.1%, down from 3.2% in October, with the “last mile” of inflation expected to be the hardest part to tame.

    Investors now will be focused on Wednesday’s Federal Reserve decision. Short-term interest rates are expected to remain unchanged at a 22-year high, but the central bank is expected to update its “dot plot” forecast of rates over a longer time horizon.

    “Although the market will focus on the timing of rate cuts, we suspect Chair Powell will be keen to strike notes of caution to avoid financial conditions easing too much further to ensure the Fed continues to see encouraging progress on inflation,” said Emin Hajiyev, senior economist at Insight Investment, in emailed comments.

    [ad_2]

    Source link

  • Tesla is a ‘soft landing’ stock, says Goldman Sachs. Here are its picks for a gentle economic landing and stocks for a recession.

    Tesla is a ‘soft landing’ stock, says Goldman Sachs. Here are its picks for a gentle economic landing and stocks for a recession.

    [ad_1]

    Pour one out for the beleaguered economists, who for once got an important indicator, the consumer price index, right on the nose, after CPI fell 0.1% in December, while core prices rose 0.3%.

    “The 2021 surge in durable goods demand normalized, and the resulting collapse in durable goods price inflation was stunningly fast,” says Paul Donovan, chief economist of UBS Global Wealth Management.

    “The commodity wave of inflation is fading, and that leaves the profit margin expansion in focus,” he adds. What a good time for earnings season to be upon us, and what do you know, it is, kicking off with the banking sector on Friday before broadening out next week.

    Strategists at Goldman Sachs have a new note out, saying that the market is pricing in a soft landing even though the trend of earnings revisions points to a hard landing.

    They’re not that optimistic — even in the soft-landing scenario, the team led by David Kostin say the S&P 500
    SPX,
    +0.40%
    will end the year right around current levels, at 4,000. But they identify 46 stocks that could benefit — profitable, cyclical companies that are trading at price-to-earnings valuations below their 10-year median, among other factors.

    One name jumps out: Tesla
    TSLA,
    -0.94%    ,
    which trades at 22 times forward earnings versus the 10-year median of 117 times. But the other 45 names are less flashy, ranging from Capital One
    COF,
    +1.81%
    and Carlyle Group
    CG,
    +0.54%    ,
    to a host of industrials including 3M
    MMM,
    +0.12%    ,
    Parker-Hannifan
    PH,
    +0.73%
    and Otis Worldwide
    OTIS,
    +0.42%    .
    As a whole, these typically $10 billion companies are trading at 12 times earnings, versus 17 times usually.

    In the hard landing scenario, S&P 500 profit margins would shrink by 125 basis points, to 10.9% — about in line with the median peak-to-trough decline during the eight recessions since 1970, which has been 132 basis points. Consensus expectations are for a 26 basis-point margin decline.

    The Goldman team also have a 36 stock screen for a hard landing — profitable companies in defensive industries with a positive dividend yield. They’re typically food, beverage and tobacco companies as well as software and services companies — including Costco Wholesale
    COST,
    +0.58%    ,
    Kroger
    KR,
    -0.99%    ,
    Altria
    MO,
    +0.48%    ,
    Tyson Foods
    TSN,
    +0.23%    ,
    Microsoft
    MSFT,
    +0.30%    ,
    MasterCard
    MA,
    -1.13%
    and Visa
    V,
    -0.25%    .
    As a whole, these $37 billion companies are trading at 22 times earnings vs. a historical 24 times.

    The market

    After a 2.3% advance for the S&P 500
    SPX,
    +0.40%
    over the last three sessions, U.S. stock futures
    ES00,
    +0.39%

    NQ00,
    +0.58%
    declined on Friday.

    The yield on the Japanese 10-year bond
    TMBMKJP-10Y,
    0.511%
    exceeded 0.5%, the Bank of Japan’s yield cap, ahead of next week’s rate decision , prompting a second day of aggressive bond purchases from the central bank.

    For more market updates plus actionable trade ideas for stocks, options and crypto, subscribe to MarketDiem by Investor’s Business Daily.

    The buzz

    Fourth-quarter earnings were rolling out from Bank of America
    BAC,
    +2.20%    ,
    JPMorgan Chase
    JPM,
    +2.52%    ,
    Citigroup
    C,
    +1.69%
    and Wells Fargo
    WFC,
    +3.25%    ,
    and outside of banks, Delta Air Lines
    DAL,
    -3.54%    ,
    BlackRock
    BLK,
    +0.00%
    and UnitedHealth
    UNH,
    -1.23%    .

    JPMorgan shares slumped after forecast-beating earnings, though investment bank revenue came in light of estimates. Delta shares also declined after topping earnings estimates.

    Tesla
    TSLA,
    -0.94%
    cut prices of Model 3 and Model Y vehicles in the U.S. and elsewhere by up to 20%. The electric vehicle maker stock dropped 6%.

    Virgin Galactic
    SPCE,
    +12.34%
    surged after saying it’s on track to launch space-tourism flights in the second quarter.

    Apple
    AAPL,
    +1.01%
    says CEO Tim Cook requested, and received, a pay cut after investor criticism.

    The University of Michigan’s consumer-sentiment index is due at 10 a.m. Eastern, and Minneapolis Fed President Neel Kashkari and Philadelphia Fed President Patrick Harker are due to speak.

    Tyler Winklevoss said charges by the Securities and Exchange Commission brought about Gemini Trust for allegedly offering unregistered securities were “super lame” as it seeks to unfreeze $900 million in investor assets.

    Best of the web

    There’s a bull market in swearing on corporate earnings calls.

    The West is now preparing to send tanks to Ukraine in what could be another escalation of its conflict with Russia, which on Friday claimed victory in the eastern town of Soledar.

    A look back at photos of Lisa Marie Presley, who died at age 54.

    Top tickers

    Here were the most active stock-market tickers as of 6 a.m. Eastern.

    Ticker

    		 Security name
    BBBY,
    -30.15%         		Bed Bath & Beyond
    TSLA,
    -0.94%         		Tesla
    GME,
    -0.68%         		GameStop
    AMC,
    +0.80%         		AMC Entertainment
    MULN,
    -8.59%         		Mullen Automotive
    NIO,
    -0.08%         		Nio
    APE,
    -2.56%         		AMC Entertainment preferreds
    AAPL,
    +1.01%         		Apple
    SPCE,
    +12.34%         		Virgin Galactic
    AMZN,
    +2.99%         		Amazon.com
    Random reads

    Like a scene out of “Stranger Things” — there’s uproar after new restrictions on the Hasbro
    HAS,
    +0.21%
    game Dungeons & Dragons.

    Starting next month, Starbucks
    SBUX,
    +1.30%
    rewards will be less generous for most items, though iced coffee will be easier to get.

    Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern.

    Listen to the Best New Ideas in Money podcast with MarketWatch reporter Charles Passy and economist Stephanie Kelton.

    [ad_2]

    Source link

  • Tesla stock wipes out three-day bounce, falls to lowest price in more than 2 years

    Tesla stock wipes out three-day bounce, falls to lowest price in more than 2 years

    [ad_1]

    It has taken just one day for Tesla Inc.’s stock to erase the entire bounce it enjoyed over the last three days trading sessions of 2022, as disappointing deliveries data helped trigger the biggest selloff in more than two years.

    The stock’s
    TSLA,
    -12.24%
    Tuesday drop knocked the electric vehicle maker’s market capitalization to 15th on the list of most valuation S&P 500 index companies.

    On Tuesday, Tesla’s market cap fell below that of consumer products company Procter & Gamble Co.
    PG,
    +0.01%    ,
    with a current market cap of $359.18 billion, and was just below Nvidia Corp.
    NVDA,
    -2.05%
    at $352.15 billion, according to FactSet data. Tesla sat just above Chevron Corp.
    CVX,
    -3.06%    ,
    which was at $336.43 billion. (See list of S&P 500’s 20 most valuable companies as of Tuesday’s closing prices below.)

    Tesla’s stock took a $15.08, or 12.2% dive, to $108.10 on Tuesday, to lead the S&P 500’s
    SPX,
    -0.40%
    decliners, after the company reported over the weekend that fourth-quarter deliveries that came up short of expectations for the third quarter in a row. It suffered the biggest one-day decline since it plummeted 21.1% on Sept. 8, 2020, and closed at the lowest price since Aug. 13, 2020.

    Don’t miss: Tesla delivery-target miss shows ‘demand cracks clearly happening’ that mean ‘numbers could be materially reset’ for coming years, analysts write.

    With about 3.16 billion shares outstanding as of Oct. 18, the stock’s decline shaved about $47.62 billion off Tesla’s market cap, to bring it down to $341.35 billion. That’s a far cry from the peak market cap of $1.24 trillion reached exactly one-year ago.

    After the stock hit the deepest oversold reading in its history based on the widely followed Relative Strength Index momentum indicator on Dec. 27, following the longest losing streak in more than four years, it ran up $14.08, or 12.9%, over the past three days.

    If there’s a bright side to Tuesday’s stock selloff, it’s that even though the price fell below the Dec. 27 closing price, the RSI ended the day at 24.86, which is up from the Dec. 27 record low of 16.56.

    That could be a preliminary sign of what chart watchers call “bullish technical divergence,” which is when prices make lower lows while the RSI makes a higher low. It’s still rather early to make that determination, however, as the stock needs to start bouncing again to see if RSI bottoms above the previous low.

    Market caps of the Top 20 most valuable S&P 500 companies:

    [ad_2]

    Source link

  • FIFA rebuffed Zelensky’s offer to share message of peace at World Cup final, report says

    FIFA rebuffed Zelensky’s offer to share message of peace at World Cup final, report says

    [ad_1]

    World soccer’s governing body FIFA rebuffed an offer from Ukrainian President Volodymyr Zelensky to share a message of world peace at the World Cup final, according to a CNN report.

    Citing an unnamed source, CNN reported that Zelensky’s office offered an appearance via video link prior to kickoff at Sunday’s final. Defending World Cup champion France takes on Argentina in the match at Lusail Stadium, several miles north of the Qatari capital Doha.

    The source told CNN that Zelensky’s office was surprised by the negative response. It’s unclear if the message was to be delivered live, or taped, the report said. “We thought FIFA wanted to use its platform for the greater good,” the source was quoted as having told CNN, reportedly adding that talks between Ukraine and FIFA are ongoing.

    See: Qatar World Cup controversy means sponsors are walking a tightrope

    MarketWatch has reached out to FIFA and Zelensky’s office with requests for comment.

    Since Russia launched its full-scale invasion of Ukraine on Feb. 24, Zelensky has used high-profile video addresses to rally international support for his embattled nation. These have included addresses to the U.N. General Assembly, the U.S. Congress, Britain’s House of Commons, the German Bundestag, the European Parliament and a G-20 summit, as well as video-link appearances at the Grammys and the Cannes Film Festival.

    The last World Cup was held in Russia, with Russian President Vladimir Putin in attendance as France defeated Croatia 4-2 in the final. (FIFA, controversially, announced its host-country selections for 2018 and 2022 — Russia and Qatar — on the same December day in 2010.)

    The 2022 tournament is perhaps the most controversial in World Cup history, with Qatar facing a barrage of criticism over its treatment of migrant workers and its approach to LGBTQ+ rights in the country.

    Now read: British band the Farm blocks McDonald’s from using hit song in Qatar World Cup ad

    The criticism of Qatar, the first Arab nation to host a World Cup, reached a crescendo before the tournament kicked off last month. During a press conference on the eve of the opening game, FIFA’s president, Gianni Infantino, launched into a lengthy defense of the decision to hold the tournamentin Qatar and accused the West of “hypocrisy.”

    This World Cup is also the first to take place during the northern hemisphere’s winter. Traditionally, the tournament takes place in June and July, but this year’s tournament was moved to minimize the impact of Qatar’s searing heat.

    See: For Budweiser, Qatar World Cup has been a tale of tough logistics and quick thinking

    Branding experts have observed that this controversial World Cup poses challenges for the big-name corporations involved in the event. FIFA’s list of partners includes U.S. corporate titans Coca-Cola Co.
    KO,
    -0.57%
     and Visa Inc. 
    V,
    -0.49%    ,
      who are both involved in the Qatar event. McDonald’s Corp. 
    MCD,
    -2.06%
    and Crypto.com are also World Cup sponsors.

    The tournament’s beer sponsor, Budweiser, an Anheuser-Busch InBev
    BUD,
    -0.18%
    brand, has had a particularly eventful several weeks in Qatar. In an abrupt reversal just two days before the soccer showpiece kicked, Qatar organizers banned beer sales in the tournament’s eight stadiums.

    The reversal of that decision appeared to take Budweiser by surprise, with the company tweeting “Well, this is awkward …” before deleting the post. Budweiser quickly shrugged off the beer ban and promised a huge victory party for the country that wins the soccer showpiece.

    Fox Sports, which is owned by Fox Corp.
    FOX,
    -0.21%    ,
     a sister company of MarketWatch publisher Dow Jones’s parent company, News Corp
    NWSA,
    +0.28%    ,
      holds English-language broadcast rights in the U.S. to the Qatar World Cup.

    Read on: Could Qatar’s ‘reusable’ World Cup stadium end up in Uruguay? There are some amazing plans for tournament venues.

    [ad_2]

    Source link

  • Visa CEO Al Kelly to step down from that role in February

    Visa CEO Al Kelly to step down from that role in February

    [ad_1]

    Visa Inc. Chief Executive Al Kelly plans to step down from that role in February, to be replaced by Ryan McInerney, the company’s current president and a veteran of the payments giant for nearly a decade.

    Kelly, who’s been with Visa
    V,
    +0.40%
    in the CEO role since late 2016, said the timing of the change was right for him in a number of ways, as he’s soon to turn 65 and has a “lot of energy” to move into the next chapter of his life. He plans to embrace both his role as a grandfather and to continue to serve Visa through an executive chairman position on the company’s board of directors.

    After working with McInerney for the past six years, Kelly sees him as a worthy successor.

    “He is ready to  be the CEO of this company,” Kelly told MarketWatch. “He’s a phenomenal executive. He has the ability to be extraordinarily strategic and he’s also an incredibly thoughtful, get-in-the-weeds problem solver.”

    Under Kelly’s tenure thus far as CEO, Visa’s market value has increased to $437 billion from $181 billion, while its stock gained 173%.

    He is nearing his 65th birthday next year, as is Visa, based on a popular understanding of the company’s origins.

    Visa framed the transition as reflective of “the board’s very well-established and thoughtful succession plan,” according to comments from John Lundgren, the board’s lead independent director, in a press release.

    “We see this announcement as part of a planned succession and do not think it will be a surprise to investors,” RBC Capital Markets analyst Daniel Perlin wrote in a note to clients.

    McInerney has been responsible for Visa’s global businesses in his role as president, looking over the company’s product team and merchant team, among others. He’s been with Visa for almost a decade and sees “huge opportunity over the next 10 years” in areas like business-to-business transactions, government-to-consumer disbursements, and other payment functions that are newer to Visa.

    In both emerging and developed markets, he told MarketWatch he sees the potential for an “amazing digitalization of what we call ‘new payment flows.’”

    McInerney views Visa founder Dee Hock, who died over the summer at 93, as an “inspiration. Hock was “one of the original disruptors” who “saw things so far in the future that people couldn’t really imagine,” he said.

    See also: He saved credit cards, and now he’s inspiring crypto enthusiasts

    Kelly, who is staying on the company’s board, said he “will not be involved in the day-to-day running of the company,” but that he will be there to serve as a helper and adviser “for as long as it’s valuable to Ryan and his executive team.”

    [ad_2]

    Source link