Advertisements



3 Dividend Plays To Watch in Semiconductors With The CHIPS Act As Law of The Land

President Joe Biden recently signed the $280 billion dollar CHIPS and Science Act, setting aside roughly $52 billion dollars to bolster the U.S. computer chip sector. After supply chain shortages and record demand for semiconductors, the CHIPS act will boost the domestic semiconductor manufacturing industry to better compete with China. read more.....»»

Category: blogSource: benzingaAug 13th, 2022

Smart Stocks to Buy on the Dip in April

Investors with long-term horizons might want to buy some strong stocks in April and in the second quarter as Wall Street could be left chasing returns in stocks despite rising interest rates... The market came a long way from the middle of March when the Nasdaq hovered in bear market territory and the S&P 500 was slipping into a deeper correction. Meanwhile, oil prices were skyrocketing and Wall Street appeared on the cusp of an even bigger selloff amid the Russian invasion of Ukraine and imminent rate hikes.The S&P 500 is now back above its 200-day moving average and down just around 5% from its records, taking into account its 1.6% drop on the final day of March. The tech-heavy Nasdaq ripped off a 14% run off its March 14 lows.The unknowns and setbacks remain and higher rates should be a drag on stocks. Yet even with the Fed putting an end to rock-bottom rates, 10-year U.S. Treasury yields are barely at three-year highs and well within their range over the last decade. And 2.4% yields are insanely low compared to pre-financial crisis levels.This backdrop could mean Wall Street will be left chasing returns in stocks no matter what happens on the various economic and geopolitical fronts if they hope to outclimb 8% inflation. Investors with long-term horizons might want to buy some strong stocks in April and in the second quarter.Image Source: Zacks Investment ResearchAnalog Devices, Inc. ADISemiconductor maker Analog Devices expanded its reach to help it challenge the leader in the analog space, Texas Instruments, when it completed its acquisition of Maxim Integrated in August 2021. The combined firm’s portfolio features analog and mixed signal, power management, as well as radio frequency, and digital and sensor technologies. ADI boasts around 125K customers globally for its over 75K products.Analog semiconductors are on the less flashy side of the booming chip space that will remain the backbone of technology and the economy in the coming decades. They play a crucial role in countless devices and industries that next-gen digital semiconductors cannot meet. Analog chips help handle information not easily understood with 1s and 0s, such as temperature, speed, sound, electrical currents, and more.Roughly half of Analog Devices’ 2021 revenue came from clients in the industrial sector, with 20% in automotive, 15% in communications, and 16% in the consumer markets. Analog Devices executives expect to benefit over the long haul from the constant expansion of automation, electrification (from EVs and beyond), and advanced connectivity. ADI’s revenue and adjusted earnings both climbed by around 31% in fiscal 2021, driven in part by its Maxim deal.Image Source: Zacks Investment ResearchAnalog Devices beat our Q1 FY22 estimates in mid-February and analysts raced to up their FY22 and FY23 earnings estimates following the release, with the consensus figures up 11% and 9%, respectively. This bottom-line positivity helps ADI land a Zacks Rank #2 (Buy). Current Zacks estimates call for ADI’s revenue to climb another 54% this year to $11.3 billion and around 6% higher in FY23. Meanwhile, its adjusted earnings are projected to pop 29% and 8%, respectively.Wall Street is rather bullish on Analog Devices, with 75% of the brokerage recommendations Zacks has at either “Strong Buy” or “Buys,” with nothing below a “Hold.” Plus, ADI’s Semiconductor-Analog and Mixed industry ranks #16 out of 250 Zacks industries. The firm in February raised its dividend by 10% (its 19th increase in the last 18 years) and it yields 1.8% right now to top many of its peers and the S&P 500’s 1.3%.ADI shares have climbed 54% in the last three years and 330% in the past 10 years to outpace the larger Zacks technology sector’s 300%. The stock currently trades 11% below its November records at roughly $166 per share, which gives it 24% upside compared to its Zacks consensus price target. Analog Devices also trades at a slight discount to its five-year median at 19.4X forward earnings. This also marks 30% value compared to its own highs and 10% vs. the Semi space.Lowe's Companies LOWLowe's is a home improvement giant that mostly operates in the U.S. and Canada. The company and its related businesses operate or service nearly 2,200 home improvement and hardware stores. Lowe's sells nearly everything related to home improvement and construction, from lightbulbs and lawnmowers to wood and washing machines.Lowe’s and its biggest competitor, Home Depot, have benefitted for years from both the do-it-yourself and professional markets. Lowe’s posted YoY of revenue growth every year since 2010, which includes a whopping 24% expansion in 2020 that saw it surge from $72 billion to $90 billion. LOW then posted another 7.4% sales growth last year as the pandemic housing boom and home spending continued.Lowe’s comparable sales popped 6.9%, with its digital sales up 18%, and its adjusted earnings up 55% in 2021. The company also managed to improve its gross margin despite rising costs, from labor to products. LOW’s management projected that is would grow its margins once again in 2022 despite 40-year high inflation. Lowe’s ability to navigate these headwinds helped it raise its bottom-line outlook, even as many S&P 500 companies lower their earnings guidance.The company’s FY22 and FY23 consensus EPS estimates are both up 4% compared to where they were before its fourth quarter release to help it grab a Zacks Rank #2 (Buy) right now. Zacks estimates call for its sales to climb another 2% in both 2022 and 2023, on top of back-to-back years of massive growth. And its bottom-line outlook is even better, with Lowe’s adjusted earnings expected to climb 11% and 10%, respectively.Image Source: Zacks Investment ResearchDespite rising mortgage rates, Wall Street remains high on the stock, with 13 of the 19 brokerage recommendations Zacks has at “Strong Buys.” Plus, it Building Products–Retail space is still in the top 7% of over 250 Zacks industries. And Lowe’s dividend yield sits at 1.57%, with plans to repurchase approximately $12 billion worth of its stock in 2022.LOW stock climbed 550% in the last decade vs. its industry’s 400%, Home Depot’s 500%, and the S&P 500’s 260%. Lowe’s outperformance continued in the past three years, with LOW up 92% against the market’s 65% and Home Depot’s 53%. The run includes its 22% drop from its December records that has it trading around $203 per share right now, giving it over 30% upside to the Zacks consensus price target of $275 per share.Lowe’s big pullback also has it right on the cusp of reaching oversold RSI territory, which might cause some traders and long-term investors to dive in. On the valuation front, Lowe’s trades 12% below its five-year median at 15.4X forward 12-month earnings. This marks 10% value compared to its highly-ranked industry and 33% below its highs over this stretch. In fact, LOW stock is trading at its lowest levels in the past three years outside of the initial covid market selloff.  Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Analog Devices, Inc. (ADI): Free Stock Analysis Report Lowe's Companies, Inc. (LOW): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksMar 31st, 2022

Bear of the Day: Lear Corp. (LEA)

The semiconductor shortage is hitting the auto parts companies. Lear Corporation LEA is getting hit by the semiconductor shortage. This Zacks Rank #5 (Strong Sell) saw revenue fall 13% in the third quarter.Lear is a leading provider of Seating and E-Systems for the automotive industry. Headquartered in Michigan, it has employees in 38 countries.An Earnings Miss in the Third QuarterLear reported third quarter results on Nov 2 and missed on the Zacks Consensus Estimate by $0.03. Earnings were $0.53 versus the Zacks Consensus of $0.56.While it saw sales growth over the market of 9 percentage points, sales did decrease to $4.3 billion from $4.9 billion a year ago due to global vehicle production declines related to the semiconductor shortage.Without those semiconductors, they can't deliver the cars.In the quarter, Lear entered into an agreement to acquire Kongsberg Automotive's Interior Comfort Division, a leader in massage and lumbar for automotive seating applications.Lowered Full Year GuidanceDue to lower auto production, Lear lowered its full year sales guidance to a range of $18.8 billion to $19.2 billion from its prior guidance given in the second quarter of $19.7 billion to $20.5 billion.5 analysts cut their full year earnings estimates for both 2021 and 2022. One analyst even lowered their 2021 estimate in the last week.The 2021 Zacks Consensus Estimate fell to $7.83 from $11.55 just 90 days ago.That's still earnings growth of 46.9% as the company made just $5.33 last year, as the pandemic hit.2022 is expected to look brighter still, even though analysts have gotten less bullish on it in the past month.The 2022 Zacks Consensus has fallen to $15.21 from $18.12 in the prior 90 days, but that's still up 94% from this year.Raised its Dividend AgainOn Nov 18, Lear announced it was raising its quarterly dividend to $0.77 from $0.50. It's payable on Dec 29 to shareholders of record as of the close of business on Dec 10, 2021.That increase returned the dividend to its pre-pandemic levels.It's currently yielding 1.7%.A Buying Opportunity?While shares of Lear are off their 2020 coronavirus lows, they have been weak over the last 6 months thanks to the semiconductor shortage.Shares have fallen 7.9% during that time.Image Source: Zacks Investment ResearchWith the earnings estimates being cut, the shares aren't cheap on a forward P/E basis. They're trading at 22.9x.But investors interested in the auto parts plays, might want to keep Lear on their watch list for changes to a more favorable Zacks Rank and because the shares will get even cheaper on further weakness. Investor Alert: Legal Marijuana Looking for big gains? Now is the time to get in on a young industry primed to skyrocket from $13.5 billion in 2021 to an expected $70.6 billion by 2028. After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could kick start an even greater bonanza for investors. Zacks Investment Research has recently closed pot stocks that have shot up as high as +147.0% You’re invited to immediately check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lear Corporation (LEA): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksNov 29th, 2021

Transcript: Albert Wenger

     The transcript from this week’s, MiB: Albert Wenger, Union Square Ventures, is below. You can stream and download our full conversation, including the podcast extras on iTunes, Spotify, Stitcher, Google, Bloomberg, and Acast. All of our earlier podcasts on your favorite pod hosts can be found here. ~~~ ANNOUNCER: This is Masters in… Read More The post Transcript: Albert Wenger appeared first on The Big Picture.      The transcript from this week’s, MiB: Albert Wenger, Union Square Ventures, is below. You can stream and download our full conversation, including the podcast extras on iTunes, Spotify, Stitcher, Google, Bloomberg, and Acast. All of our earlier podcasts on your favorite pod hosts can be found here. ~~~ ANNOUNCER: This is Masters in Business with Barry Ritholtz on Bloomberg Radio. BARRY RITHOLTZ, HOST, MASTERS IN BUSINESS: This week on the podcast, what can I say, I have yet another extra special guest, Albert Wenger, managing partner at Union Square Ventures. He has a fascinating background in technology and software, and is interested in all sorts of interesting things, ranging from climate change to humanism, to the huge transitions that humans have gone through as a species and what it means to society, investing, scarcity and just the quality of life that we will enjoy as a species. I found this conversation to be really intriguing. If you’re interested in venture capital, in technology, in how to think about early stage investing, well, strap yourself in, this is a great one. With no further ado, my conversation with Union Square Ventures’ Albert Wenger. You have quite a fascinating history. Let’s delve into that, starting with your background. You won a national German competition in computer science in high school. Tell us about that and where that led you. ALBERT WENGER, MANAGING DIRECTOR, UNION SQUARE VENTURES: Well, I fell in love with computers very early on when I was a young teenager. And my parents were super indulgent of this at a time when that was very unusual, and they bought me an early Apple II computer, one of the earliest Apple IIs to be sold in Europe, actually. And I’ve stuck with that, my entire life. I’ve studied computer science as an undergrad and as a graduate student. And I’ve been investing in a lot of computer companies over the years. So it’s been a central to what I do and who I am. RITHOLTZ: So let’s talk about the timing of school. You graduate Harvard in 1990, with an Economics and Computer Science degree, perfect for the explosion of the Internet; a PhD from MIT and Information Technology in ‘96. So when you were leaving school, were you interested in the Internet, or was it more hardware and software? WENGER: No. The web was really exploding while I was at MIT. And I actually finished my PhD in ’99, but I started a company in late ‘96, early ‘97. And I was kind of doing the company and the thesis at the same time, which wasn’t great for either, and also wasn’t great for our marriage. We kind of managed to get through that. But I was really fascinated with the web from when I first discovered it, which was in a computer lab at MIT where I’m trying to do my stats homework. So — RITHOLTZ: So let’s talk a little bit about some of the other companies you either founded or run, the most famous is probably del.icio.us, which ended up getting picked up by Yahoo. Tell us a little bit about — WENGER: It was an early Web 2.0 darling, Joshua Schachter had started. He was working at Morgan Stanley actually full time. He had started this as a side project. And it was kind of this idea that you would share your bookmarks with others, because bookmarks were kind of an indication of something that was actually interesting on the Internet. And Joshua added tags to that, and so you could browse things by tags. And at that time, Union Square Ventures’ Fred and Brad had started the firm, they had just raised the first fund. I had just finished another project I was been working on. And they were like, “Hey, we’re talking to this guy, Joshua, what do you think?” So I met up with Joshua, and they wound up investing, and I wound up to become the president. RITHOLTZ: So you’re president of del.icio.us, you see it through in order to be acquired by Yahoo in the early 2000s. Tell us a little bit about that experience. WENGER: The del.icio.us team was tiny. It was sub 10 people, basically. RITHOLTZ: Wow. WENGER: And it was a very rapidly growing service. I made myself sufficiently unpopular during the acquisition because I insisted on certain things, I’m like, “We’re not doing this. We’re not doing this. We’re not doing this.” At they at the end, they were like, “We want all of you except for this Wenger guy. We don’t want him,” which was perfect for me, mind you, because I didn’t want to relocate out to the West Coast. So I got to just take my marbles and start making angel investments. RITHOLTZ: So is that what led you to Etsy and Tumblr was the del.icio.us acquisition? WENGER: Yeah, exactly. I had a little bit of money and I met Rob Kalin, the founder of Etsy. He had just come back from the West Coast. He had tried to raise money on the West Coast, was unsuccessful with that. And so I wrote an angel check here, and then I brought Union Square Ventures in as the first Series A investor. RITHOLTZ: Is that what led to your transition from entrepreneur to venture capital? WENGER: Well, I was basically hanging out at the USV offices after the sale of del.icio.us and — RITHOLTZ: Just because you had no place else to go. WENGER: Because I knew both Brad and Fred really well, and so it was kind of a natural thing to do. I did these angel investments. I led the Union Square Ventures investment in Etsy, I became a venture partner for that, and then became a GP in the 2008 fund. RITHOLTZ: So Etsy, also Tumblr was another one. And if memory serves, were they acquired by Yahoo? WENGER: They were also acquired by Yahoo. Yes. RITHOLTZ: Okay. So you’re working at a contact list. What was that experience like now not as a president, but as an outside investor? WENGER: It was a very, very lucky landing for Tumblr, because Yahoo really was the only bidder and they were bidding against themselves, but they didn’t really know that. RITHOLTZ: So what eventually led you to say, “You know, I think I could do this venture stuff full time. Let me hang my hat at Union Square Ventures and focus solely on something else.” WENGER: Yeah, that had really been my goal since my own first startup in ’96, ‘97, which was a company called W3Health that ultimately failed. From that experience, I realized that I really loved startups, but then I was never going to be good operator, but I thought I could maybe be a decent investor. RITHOLTZ: Let me make a digression here, and since you’re in front of me, I have to ask this question. So I deal with traders, investors, fund managers, economists down the list, there is no group of people that seem to be prouder of their failures than venture capitalists. Why is that? WENGER: Because it’s an integral part of the business. And if you can’t deal with failure, you can’t be a VOICE, because many of the startups you invest in fail. RITHOLTZ: Statistically, that’s your expectation? WENGER: Yes, absolutely. RITHOLTZ: So it just seems like the healthiest way to think about what is unavoidable, yet so many people within the world of finance, kind of dance around it, try not to deal with it. There’s a little bit of denial. It’s almost like an object of pride, “Look, here are all the companies we invested in that didn’t make it. Look, here are all the great companies we passed on.” It’s almost like a point of pride, this sort of self-awareness. WENGER: Well, it’s also important too, how the venture capital model works overall, right? So the most you can ever lose in venture capital is the amount of equity you’ve put in. RITHOLTZ: Right. WENGER: But the upside is nearly limitless. I mean, it’s what Nassim Taleb calls convex tinkering, right? It’s the perfect example of that. You take many small, relatively small positions, and any one of them can become very, very large. But you also learn a lot from the things that don’t work. You know, sometimes you learn a lot more from that than you learn from the ones that do succeed. RITHOLTZ: Sure. You tend to learn more from losers than winners usually. And then I have to ask the same question, so Union Square Ventures, by definition Union Square is here in New York City. What’s it like being a venture investor on this side of the country, as opposed to what seems to be, you know, the gravitational black hole of venture out in Silicon Valley in California? WENGER: Well, first of all, it’s no longer that. So you know, Sequoia just opened a New York City office. Andreessen Horowitz has people on the ground here. So New York City is now, today, one of the epicenters. When we started, that wasn’t the case. When we started, people were like, “Oh, there’s been no tech company in New York City. There’s been no IPO.” Of course, you know, we were involved with two of the major IPOs. We led the Series A in Etsy. I also led the Series A — we — Union Square Ventures led the Series A in MongoDB, the big New York City-based success story. So it was incredibly healthy, though, because we were never caught up in the “Oh my God FOMO” of we have to have one of these and one of those, and everybody else is investing in the sector. It was always a “Let’s form our own thesis. Let’s figure out what we believe, and then let’s find companies that fit with that.” And we’ve always been extremely competitive in winning deals in the West Coast. In Twilio, I led the Series A, for Union Square Ventures, and there was a, you know, San Francisco-based company. So — RITHOLTZ: Last question on this topic, how different is venture in New York versus California, or is there really no big difference? WENGER: There used to be a noticeable difference between East Coast and West Coast. Today, I think that’s completely erased. RITHOLTZ: Quite interesting. So let’s talk about the thesis-driven venture capital firm, which is how USV describes itself. Tell us what these theses are and how do they drive your investment? WENGER: Yeah. So there’s been an evolution over time. I would say, you know, what we call Thesis 1.0 was that we invest in large networks of engaged users, differentiated by user experience, and those were investments like Twitter and Tumblr. And then we started to focus on companies that had less obvious network effects, so more data behind the scenes, companies like Sift, for example. And then we added to our thesis sort of infrastructure, and infrastructure investments included Twilio and MongoDB, Cloudflare. Stripe. There’s a whole bunch of infrastructure investments, infrastructures for building digital businesses. Our current iteration, what we call Thesis 3.0 is about broadening access to knowledge, capital and well-being by leveraging existing networks and protocols, and building trusted brands. And each part of that thesis actually means something very concrete. So let me just pick one of them, building trusted brands. For us, a lot today is about is your business model fundamentally aligned with your customer or not? The advertising model, as we have learned is not aligned with customers’ interests, right? If you’re YouTube, you want to serve the most engaging video so that you can show more ads. You don’t want to serve the most appropriate video, right? But if you have a subscription model, let’s say like Netflix, you want to show something that somebody actually really truly deeply is going to relate to, so that they stay as subscriber long term. So each part of this thesis means something and we use the sort of high level thesis to then look for very concrete things. So for example, I said broadening access to capital, so we’ve done a lot in lending, like, how can we do better underwriting, better, cheaper, faster loans, for instance, to small businesses, investment, like a company like Funding Circle, or to individuals, like a company like Upgrade, in a way that actually helps people, so where you’re not dragging them into like a debt hole, but you’re actually helping them build up their credit score while you’re giving them — extending their credit. RITHOLTZ: So 3.0 sounds a lot like World After Capital, I’m hearing some very similar themes. WENGER: Absolutely. There’s a strong relationship between some of the ideas in the book and some of the ideas that inform our investing. RITHOLTZ: We’ll circle back to the book in a little bit. Let’s talk about a couple of companies you invested in because I’m picking up a theme there, Meatable, Terra, Living Carbon, Marvel Fusion, Legendary Food, climate sustainability impact investing. WENGER: Yeah. So those are all personal investments, not Union Square Ventures investments. But I made those investments in the run up to us forming a climate thesis, and now a Climate Fund. So those are all investments that go back a few years, when I sort of became really interested in what kind of opportunities come out of the climate crisis. The climate crisis, if we don’t get on top of it, none of the other stuff will matter. None of the money we’ve made will matter. It’s so big. It’s so much bigger than COVID, for example, in ways that I think people still don’t appreciate. And so I made some personal investments first, and then we started talking to our LPs about it. And then during COVID, we raised the first Climate Fund, $160 million Climate Fund. We’re almost done investing that. And so the climate thesis is very simple. We want to invest in companies that either reduce emissions, draw down existing emissions, or help with adaptation. So I’ll give an example of an adaptation investment. We invested in a company out of Australia called FloodMapp. And what they do is they predict where things are going to flood. They also measure the actual flooding. Floods are one of the biggest problems coming out of the climate crisis, and they’re here today. This is not some future problem. And mega floods in Pakistan, a third of Pakistan is underwater as we speak. I don’t think people understand how horrific the devastation there is. RITHOLTZ: It’s the other side of the droughts that are everywhere. It’s what’s dry gets drier, what’s wet gets wetter. WENGER: Absolutely. Talking about emissions reductions, we’ve made investments, for example, in our first ever investment in Africa, in a company called Shift EV. What Shift EV does is it takes existing delivery vans and retrofits them in a space of a couple of hours, from internal combustion engine to electric. RITHOLTZ: A couple of hours? WENGER: A couple of hours. Yes. RITHOLTZ: Because if you want to take an old 911 and convert it to EV, it will take you about a year, assuming if you can get on the list. It’s that backed up for that shift itself. WENGER: So they have completely industrialized this process. RITHOLTZ: That’s amazing. WENGER: You drive a minivan in and a couple of hours later, drives out as an EV. RITHOLTZ: Wow. What do they do with the internal combustion engine and — WENGER: That’s a great question. I need to ask Ellie what they do with that. I don’t know. RITHOLTZ: I mean, it seems like that’s a lot of hardware to just throw away. WENGER: I don’t know. Great question. RITHOLTZ: Really interesting. WENGER: And then I’ll talk about one of the drawdown investments. We’ve invested in a company called Brilliant Planet out of the U.K. What they do is they build ponds in the desert and they pump seawater in, and then they grow algae very, very rapidly, continues algae bloom, and it takes a huge amount of carbon out of the atmosphere. RITHOLTZ: Algae in ponds — WENGER: In the desert. RITHOLTZ: — can move the needle? WENGER: Yes. Absolutely. RITHOLTZ: That’s quite fascinating. Two questions come out of this, one is structural and one is fund based. Let’s do the fund one first. So John Doerr had a climate fund started about 10 years ago at Kleiner Perkins. Some people have said it kind of lagged other similar era venture funds. Was he just early? How do you look at this in terms of not just having a positive impact on the planet but generating a return on investment? WENGER: Yeah. The early green tech funds, they were too early in one sense. But in another sense, they were actually crucial to our having a shot at overcoming the climate crisis. Because if it hadn’t been for the investments, we wouldn’t have gotten on the cost curve, for instance, for solar PV, right? So the reason we have really cheap PV today, the reason we have really relatively cheap batteries today is because of some of the investments that were made back there. And there’s this pattern in the world where every big technological shift starts with a bubble, right? RITHOLTZ: Right. WENGER: So when we had ships, we had the South Sea bubble, right? And when we had railroads, we had the railroad bubble. There was an automotive bubble. There was dot-com bubble, multiple bubbles in crypto. There was a green tech bubble. But, now, it’s a decade-plus later and all the things that they were rightly concerned about are all coming true. And we are now reaping some of the benefit, but we’re also now building on — we’re sort of standing on the shoulders of giants, as it were. RITHOLTZ: And to clarify, I believe that fund doubled over 7 or 10 years, not like it was a sinkhole, but compared to what it could have done, had that money been invested elsewhere, it might have seen better returns. But it wasn’t — I don’t want to make it sound like it was total loss. So the second question is, you’re making seed investments, how does that work if you want to bring one of those seeds to your firm, to Union Square Ventures? And from a public market, that sounds like it’s a compliance and conflict nightmare. You guys approach it differently. WENGER: In our LPA, we can write checks up to $100,000. So we can’t make massive investments in startups. So all of the companies you mentioned have a sub $100,000 investment. And then the only one where I’ve invested more is Marvel Fusion. We can invest more once the fund has passed on something. So if the fund says we’re not doing this, then we can invest. RITHOLTZ: Got it. Interesting. So along those lines, there are some venture firms that don’t really seem to care a lot about valuations and others seem to focus on a little bit. How do you fall in that spectrum? Is valuation significant, or is it, hey, we’re going to make 100 investments and if two or three workout, the valuations are irrelevant? WENGER: No, we’ve definitely always been disciplined on valuation, and we’ve let a number of things go. Sometimes we let them go and they do great, like, “Well, we could have made money if we had invested.” And sometimes you’re very happy at that. Our approach is we’ve always kept our fund sizes small, so we don’t need to be in everything that’s out there. Our latest funds are — our core fund is $250 million. So these aren’t big funds in the scheme of things when you have other firms that raised $3 billion. $8 billion, $15 billion per fund. And as a result, if we think the price is too high, we can just find something else. RITHOLTZ: So let’s talk a little bit about some of those bigger funds, and I guess we’ll hold Softbank off to the side because that was really aberrational. But do you end up when you have lots of $10 billion and $20 billion venture funds, with too much capital chasing to a few good deals? How does this impact the whole ecosystem that’s out there? WENGER: Largely, it’s great for us because we’re early stage investors. So it means there’s lots of money to come in and fund later rounds of the companies we’ve invested in. So we haven’t really spent much of our time worrying about it. And then every once in a while, these firms go. We’re going to go really early and some of them do spread money early. But we find, because we’re thesis-driven and because we are opinionated, on deals that we’re really interested in, we can win those deals. Sometimes they’ll take a small check from somebody else along for the ride, but they know that we work with early stage companies that we roll our sleeves up, that we’re involved, and that we have a thesis. And you know, we take the approach we’d rather disagree with the founder and then not invest than sort of like — be like, “Oh, well, whatever it is you want to do.” Like, we have a thesis as to why we think this is interesting. Let’s talk about this. If it’s aligned, great. And obviously things may change after we’ve invested. We’re not like stubborn, you know. But let’s talk about why we are excited. And if that aligns with you, that’s great. If it doesn’t, let’s go separate ways, right? So we take a kind of — I call it a high alpha approach investing. We’d rather have really upfront conversations about what we like and don’t like than sort of get married as it were. And actually, it’s harder to get rid of VC than it is to get a divorce. So like we think it’s good to have these conversations up front, right? RITHOLTZ: What about follow-up rounds, or some firms that will do a seed round, and then participate in an A or B round? Is that something that Union Square does? WENGER: Well, we reserve a lot of funds for follow-on, and we have a very sort of, I think, sophisticated reserves methodology that we’ve honed over many funds cycles now, where we actually built kind of a Monte Carlo analysis of the portfolio to see how much money we think we need to keep in reserve. But eventually, when the valuations get too high, the rounds get too large, we don’t follow on. We have a separate vehicle called the Opportunity Fund, where we sometimes write bigger checks into late-stage rounds in some of our portfolio companies, but not always. RITHOLTZ: So let’s talk a little bit about this book, “The World After Capital,” starting with what is technological nonlinearity? I liked that phrase. WENGER: The basic idea is that every once in a while in humanity’s history, we invent things that radically change what we, as society, have as a binding constraint on us. So let me make that very concrete. For hundreds of thousands of years, our ancestors were foragers. They were hunter-gatherers. They would go out and find things, and eat berries and kill little squirrels. And then roughly 10,000 years ago, we had a bunch of inventions. We figured out that you could plant seeds, that you could irrigate them, that you could domesticate animals, that you could use the dung from the animals too as a fertilizer. We figured all those things out and we got agriculture. And the constraint shifted from how much food can you find to how much land — arable land do you have. And when that constraint shifted, we changed just about everything, about how humanity lives. Like, we went from being migratory to being sedentary. We went from very flat tribal societies to very hierarchical agrarian societies. We went from being, clearly, like polygamous, polyamorous, whatever you want to call it, to being monogamous-ish. We went from having religions where, you know, everything was a spirit, a tree, a rock, everything had a spirit, and then we went from that to theistic religions where there was some different number of gods. Then fast forward to a couple 100 years ago, we had sort of the enlightenment. With the enlightenment, we had sort of big scientific breakthroughs and we figured out how to dig up stuff out of the ground and burn it and create energy, and make heat and electricity and all those things. And the constraint of it again shifted from, you know, how much land do you have to how much physical capital can you create? How many machines can you build? How many buildings, roads, railroads, et cetera? RITHOLTZ: That’s really interesting. WENGER: And we changed everything yet again. And so now the point of the book is, guess what? We have to change everything yet again, because capitalism, this is why the book is called “The World After Capital,” capital is no longer the binding constraint. Instead, it’s human attention. RITHOLTZ: Human attention, so that’s the third great shift is. So we went from agricultural scarcity to having enough food. WENGER: We went from forager to agrarian, so from food scarcity to land scarcity, then we went from land scarcity to capital scarcity. And now, we’re going from capital scarcity to attentional scarcity. RITHOLTZ: Capital is no longer scarce. So now attention is the new scarcity, which there’s a line in the book that really caught my eye, attention is time plus intentionality. Explain that. WENGER: Yeah. So speed just tells you how fast you’re going. Velocity tells you how fast you’re going towards something, towards some destination. RITHOLTZ: Speed plus direction. WENGER: Speed plus direction is velocity. And the same is true for attention. Time just tells you how much time has elapsed, you know, two hours. Attention is what was your mind and your body doing during those two hours. Were you, you know, just scrolling Twitter, or were you like working on a solution to the climate crisis? RITHOLTZ: So you say something about these transitions that really jarred me. Previous transitions like agriculture emerged over thousands of years and was incredibly violent. Industrial Age lasted over hundreds of years, and also involved lots of violence and bloody revolutions, and two World Wars, which raises the obvious question, what sort of violence is the next transition based on attention scarcity potentially going to involve? WENGER: Well, at the moment, the leading candidate is the climate crisis. We have known about it for literally hundreds of years, actually, and we have refused to do enough about it. And so now, we have entered the state where we’re getting extreme heat events. We’re getting extreme drought events. The food supply is definitely in question. Something that we have taken for granted for many years now. We’ve taken for granted that you can go to the store and buy food. Unless we really course correct very hard, very dramatically, and by dramatically, I mean, the level of government activation that we had in World War II. In World War II, we spend roughly 50% of GDP on the war effort. We need to spend roughly 50% of GDP on the climate crisis for several years sustained in order to actually avert it. RITHOLTZ: So that suggests that you don’t think there’s going to be some technological magic bullet going to appear out of nowhere? WENGER: Well, if you look at World War II, the government went to Ford and said, “We need you to build airplanes, not cars.” And actually, there’s a chart in my book that shows that output of cars dropped. We need to get to a similar point where we’ll say there’s certain things we’re just not going to do for a while because we need to do these other things. There are great technologies. We don’t need to invent some magic bullet that doesn’t exist. We just need to build a lot of what we already know how to build. Like, we need to build a lot of nuclear power plants. We need to build a lot of these ponds in the desert that can draw down carbon. There’s 1001 different things that we need to build. We just need to take our physical capital and point it at that. And when you do that at that scale, incredible things become possible. So, during World War II, Ford Motor Company built a plant, it was called the Willow Run facility. And in Willow Run, they built the B-17 Liberator bomber. Now, that’s a four-engine bomber, with lots of gun turrets to defend against fires. At peak production, they finished — they finished one of these every hour. RITHOLTZ: Amazing. WENGER: They finished a complete airplane every hour. And my point is once we decide to take our attention, and allocate our attention to what the real problem is, we can redirect our physical capital. We have plenty of physical capital. People say, “Oh, you can’t build nuclear power plants fast enough.” That’s if you built them in peacetime mode. If you built them in wartime mode, you could build them very rapidly. RITHOLTZ: So when you say this requires a substantial commitment of capital, let’s put a dollar amount on that. Are you talking — WENGER: Half of GDP. I’m saying half of GDP. RITHOLTZ: So you’re saying $10 trillion? WENGER: Yeah. RITHOLTZ: Just in the U.S. alone? WENGER: Yeah. RITHOLTZ: Now, we just passed a climate bill, arguably, that was a couple of billion dollars, $100 billion maybe over 10 years. And it was like pulling teeth, it was a miracle it just managed to skate through. And that’s a fraction of a trillion dollars. How you’re going to get 10x or 100x? Do things have to get much worse before they get much better? WENGER: Yeah. I mean, there’s a book about the climate crisis called “Ministry for the Future,” by Kim Stanley Robinson. And the book starts with a devastating heat event in India, where tens of millions of people die. I don’t know what it takes. But I can tell you, it’s only going to get worse, it’s going to get a lot worse. And at some point, hopefully, people — enough people will wake up and say, “No, no, we really actually have to get into a wartime footing. RITHOLTZ: So up till now, a huge swath of the population has been asked my grandkids problems, what wakes them up? Is that sort of events? I mean, you see what’s happening in California. You see what’s going on in lots of the United States with droughts. It seems like people are starting to pay attention. WENGER: Oh, absolutely. Yale does an incredible survey of climate attitudes. And it is very clear that even in the U.S., which has been lagging on this, a significant majority of people believe that the climate crisis is real, that is caused by humans, and the government should do something about it. So I actually believe this is going from a kind of a losing proposition for politicians to a winning proposition. And I think politicians need to be much more into it. Most of them still aren’t willing to acknowledge the full extent of this crisis. And the physics of this crisis are extraordinary. So because of all the CO2 we’ve put in the atmosphere, the amount of heat that we’re now trapping that used to radiate out into space, do you know how much heat it is? It is four Hiroshima-sized nuclear bombs every second. RITHOLTZ: It’s insane. I read that in your book and I was like, no, no, he must mean every week. Every second? WENGER: Every second. Now, imagine for a moment you had alien spaceships above Earth, throwing four Hiroshima-sized nuclear bombs into our atmosphere every second. RITHOLTZ: That would put us on a wartime footing? WENGER: And what will we do? Yeah. We would drop everything, right? We would be like, “They’re trying to kill us. We have to get rid of them.” I mean, we made a movie about it called Independence Day. RITHOLTZ: Four nuclear bombs every second? WENGER: Yeah. RITHOLTZ: And it’s just — WENGER: Of every minute of every hour of every day, it’s a mind-boggling amount of heat. RITHOLTZ: So there’s a couple of other things in the book I wanted to touch on. You mentioned alien visitors. We’ll hold off on the Fermi paradox discussion because nobody wants to hear me babble about that. But one of the things I thought was kind of interesting is the transition of the nature of scarcity. You’re right, it changes the way we measure human effort. It makes it more difficult, and we need increasingly more sophisticated ways of providing incentives to sustain unnecessary level of effort. Flash that out a little more. WENGER: So if you think of hunter-gatherers, right, I mean, you can see the results of effort immediately. RITHOLTZ: Right. WENGER: Like, you go to the forest, you either come back with something or not. RITHOLTZ: Right. WENGER: So it’s very easy to create incentives. Like, if you don’t find something, go back hunting and come back with something. RITHOLTZ: Or you’ll go hungry. Right. WENGER: When you go to agriculture, you have these, you need to see, you need to take care of it, and you don’t know how big a harvest you’re going to get. So you need a little more sophisticated incentive, and a lot of those incentives were often provided by a religion. Religion is sort of saying you have to apply yourself to this backbreaking work. This is the work of the Lord, et cetera. And then when we went over to capital, now it gets even more complicated because you might not see results of some effort for many, many years. I actually think when I say more sophisticated incentives, in the book, I talked a lot about just freeing up humans to pursue their interests, to make it so that you can freely allocate attention. And I’m always very inspired by mathematics. Like, you can’t get rich as a working mathematician, basically. I mean, yes, if you wind up going to Wall Street, you can. But if you actually keep working as a mathematician, that’s not a — you know, there’s also no patents. And you know, the only thing math works on recognition by peers, and there’s some prizes. There’s like the famous Fields Medal, and there’s some other prizes. And yet, the amount of math that’s been produced over the last, you know, few decades is just mind-blowing extraordinary. And I believe we need to bring that type of model to many, many more parts of the economy and parts of activity. So in a way, what all of “The World After Capital” is about is how can we shrink all the explicitly incentivized economic activity, where there’s an explicit, okay, you go to work and you get paid a wage kind of thing. And here’s a market transaction, how can we shrink that and make room for things that are super, super important, but cannot have prices, cannot be economically incentivized? Let me give concrete examples of that. Obviously, we’ve talked about the climate crisis. But let’s talk about death from above. Like, every million years or so, the earth gets hit by something very large out of space. That’s very, very bad when it happens. But there’s no market for allocating resources to that. There’s no supply and demand for it. So we, as humanity, need to decide that this is a real problem and we ought to be working on it. RITHOLTZ: Now, aren’t we tracking various large observed asteroids and doing some stuff? WENGER: We are, but the amount of effort we’re putting into this relative to the size of the problem is minuscule. The number of people who sort of truly globally work full time on this is a tiny fraction of the people we actually should have. And we’re also not working sufficiently on like what will we do if we detected one that’s clearly headed for us, right? RITHOLTZ: Well, you send Bruce Willis up and — WENGER: Exactly. Yes. RITHOLTZ: — he takes it, right? WENGER: Yeah, he does. RITHOLTZ: I mean, it’s not unknown. We know the regular major extinction events. There’s a real interesting theory that as the sun goes around the galaxy and passes over and above the galactic plane, that affects the asteroid belt and — WENGER: The famous Oort cloud is where a lot of these objects — yeah. RITHOLTZ: Right, which is full 360 around the — WENGER: Yes. So we know all of this. And here’s the interesting thing. When we went from the agrarian age to the industrial age, we didn’t get rid of agriculture. This agriculture today, right, we all eat food that’s grown in agriculture. But what we did is we shrunk how much human attention is required to do agriculture, and we took it from being like 80% of human attention to like sub 10%. RITHOLTZ: It’s less than 2% in United States. It’s tiny. WENGER: So what I want to do is, let’s do the same with the rest of the economic sphere. I’m not an anti-capitalist. I’m not a degrowth. Person. I’m not suggesting we should get rid of markets. I’m just saying we should compress market-based activity from absorbing much of human attention to absorbing maybe 30% of human attention, and we should free the rest up to work on these incredibly important thing. Some of them are threats, and some of them are opportunities, right, opportunity to cure cancer, opportunity to create incredible wildlife habitats, restore those wildlife habitats, opportunity to travel to space. I mean, all these opportunities that we’re not paying attention to because they’re not — again, they’re not really market price based and can’t be market price based. There’s just no prices for them. RITHOLTZ: So the conclusion of the book had a list of action goals, which was not what I was expecting in a book on venture capital and “The World After Capital;” mindfulness, climate crisis, democracy, decentralization, improving learning, and humanism. Address whichever those you feel like. WENGER: Well, these are all core components of how to have a — hopefully, a transition that’s not a violent transition, right? These are all about how could we get out of the industrial age into the knowledge age without some cataclysmic event, without a world war, without killing billions of people through the climate crisis, right? They’re also all components of what a knowledge age society might look like. Right? So let’s talk about mindfulness for a second. We’re constantly assaulted with new information now. You know, our brains evolved in an environment where when you saw a cat, there was an actual cat. Now, there’s an infinity of cat pictures. So if you don’t work on how you — how much you are in control of your mind, external sources will control your mind. So mindfulness, which is a much abused word, but it has become much more important in a world where we’re constantly assaulted by information flows, right? Let’s talk about humanism for a moment. Humanism is about recognizing that humans are the prime movers on this planet. We are the ones who have brought about the climate crisis. We are the ones who put a theory to solve it, or wind up getting wiped out by it. And it’s about this idea that, you know, with great power comes great responsibility. And so, we are responsible for the whales, not the whales for us. There is — at the moment, because we’re in this transition period already, and because things are going so poorly for so many people in this transition, there’s no a flight back to religion, there’s a flight to populism. And a big part of the book is about, no, there is a secular alternative way of thinking about society that embraces science, that embraces progress, that embraces humans and all types of humans, and that recognizes that we are first and foremost human, and only secondarily are we American, or Russian, or male or female or something else. You know, these are all secondarily. But primarily, we’re humans, and humans are fundamentally different from all the other species on the planet. RITHOLTZ: Quite fascinating. So let’s talk about the current state of the world for venture capitalists. We’ve seen valuations come way down for public companies. They’re pretty reasonably priced these days, about 16 times for the S&P 500. That’s historically, more or less, average. Where do you see the state of the world in early stage valuations? How are they holding up? A year ago, late stage valuations had gone just bonkers. Tell us a little bit about what’s going on today. WENGER: The correction always, basically, is a trickle-down type of correction. It happens very rapidly in the public markets. Then you still get some high-priced private rounds that either were in the works, or they have a lot of structure. In the later stage markets, you know, there’s a headline number. But then nobody talks about all the war in coverage that’s behind the scenes. And then the early stage valuations tend to sort of lag behind all of that. But we’re seeing early stage valuations come down. And as a firm, we’ve always been disciplined on valuations. So we just let a lot of things go where we just thought it was — RITHOLTZ: Are they down off the peak, or are they cheap and attractive? WENGER: The down of the peak, whether they’re cheap or attractive, I think, you know, time will tell. But we are back in a situation where, you know, there are seed deals getting done that’s below $10 million, certainly below $20 million, and you know, seed rounds that have a reasonable size. So you know, for a while we were seeing these $10 million, $20 million, $30 million seed rounds. RITHOLTZ: It sounds pricey. WENGER: Yeah. And that’s not happening anymore. But at Union Square Ventures, we’ve also always tried to basically be at the next era, at the next thesis and evolve our thesis before everybody else gets there. And once everybody else gets there, try and evolve our thesis. And so, for example, in the Climate Fund, we’ve made any number of reasonably priced investments, very reasonably priced. RITHOLTZ: So I always assumed it was tied to the public markets. But sometimes you just don’t realize, when you have a good couple of years in a row in the public markets, like we saw in the 2010, pretty much straight up through 2021, you see that impact and what people are looking for, what sort of deals get done, and valuations generally. WENGER: I always find it relatively surprising how much private early stage valuations are tied to public markets because our holding — RITHOLTZ: That’s the exit, right? WENGER: But our holding periods are 5, 8, 10 years. And so, like, what’s the current public — RITHOLTZ: Right. WENGER: And so there’s a couple of different explanations. One, obviously, is just investor sentiment, right? RITHOLTZ: Right. WENGER: You know, when investors are like bearish because of what they’re seeing in the public markets, they take a bearish attitude towards their own investing. We try — at Union Square Ventures, we try to have a pretty steady pace as one way of contracting our own sort of — you know, whatever our own emotions may be about the public markets. There is, however, another effect that sometimes is underestimated, which is that the people who give money into venture funds, so these are pension funds and endowments, and so forth, they have a certain whip from the public markets, because when they’re feeling flashed on the public markets then their private allocation, you know, as a percentage of their overall portfolio, they have a certain target in mind. Then when the public markets come down a lot, all of a sudden, they’re overallocated, so they want to pull back. So there is a mechanism by which the current public markets transmit into the private markets. There’s a real financial mechanism. There’s a psychological mechanism and a real financial mechanism by which some transmission, some contagion basically happens from the public market into private market. But it doesn’t make very much sense. Like, if people were sort of more cognizant of both that emotional reaction and this mechanism, they’d be like, “Well, yeah, but innovation is happening at some pace. In some area, there’s some innovation and we should be funding that innovation.” RITHOLTZ: So I’m just making notes, investors are irrational. WENGER: Deep and profound insight right here. RITHOLTZ: Right. There you go. WENGER: You’ve never heard this one before. RITHOLTZ: So to put that into a little context, 2020, 2021, very founder-friendly deals. Now, it seems like a little more investor-friendly, a fair assessment or not quite there yet? WENGER: Well, when it comes to founder-friendly versus investor-friendly, there’s a lot more to deal than valuation. There’s all the other terms. And while I believe we will see a correction on valuation that’s pretty significant, I don’t think we’re going to go back to where venture capital was 20 or 30 years ago, that had all these super draconian terms. Certainly, even at the early stage, even at the early stage, there were all these like — there were redemption provisions in the early stage deals. I don’t think that’s going to come back. We are not fans of structure in latest stage deals. Like, just to give a good example, when I was still on the board of Twilio, Twilio had the option of doing a totally clean, no structure round and call it $1,000,000,001. In a highly structured round with like — you know, we’re going to have a full ratchet into an IPO at a $1,000,000,005. And I was — you know, some of the other investors at the table really wanted the $1,000,000,005 number because it’s a big headline number. And I talked to Jeff and I said, “It doesn’t make any sense.” RITHOLTZ: Right. WENGER: You don’t actually know what your deal is until many years. Like, just take the deal where you know what the deal is today and you know what the deal is a year from now, and two years from now, because it’s not going to change based on circumstances. RITHOLTZ: Right. WENGER: And so Jeff took the clean deal, and that enabled Twilio to go public when the IPO window reopened. Whereas at the $1,000,000,005 deal, they wouldn’t have been able to go public. And that worked incredibly well for Twilio to become a public company. RITHOLTZ: Really interesting. So since we’re comparing early stage investments to the public world, lately, everybody has been looking at different sectors the past year. Energy has done well, technology not so much. Within venture, do you see that same sort of segmentation, different sectors have different — WENGER: Well, we were basically the first sort of venture firm to have a dedicated climate fund. And now, many of the venture firms are following suit, either adding a climate pocket to their existing funds, or a climate thesis or, you know, some people call it sustainability fund. Ours is very focused on climate. So for instance, we don’t deal with water waste. It’s strictly about atmospheric carbon. So there’s a lot money rotating into that sector. There’s still healthy sort of activity around Web3. So you know, Web3, there’s still — RITHOLTZ: Crypto, blockchain, all that? WENGER: Yeah. There’s still healthy sort of activity. I do think that certain kind of software companies that had found it very easy to raise money, I think they’re finding it a lot harder, just because people have looked at it and said, “Wow, I think we’ve reached some stage of normalization in this market.” You know, like, not everything in this market is going to be a $50 billion outcome. There’s going to be many, much smaller outcomes, and so we need to adjust accordingly. And also, many of these markets had just too many companies raised venture capital doing basically more or less the same thing. RITHOLTZ: So it was easy to raise money for a fund today, a little more challenging, even if you’re a pretty decent sized VC with a 10, 20-year history. Are they having difficulty going back to their clients saying, “Hey, we’re doing another billion dollars?” WENGER: You know, I think that we will only see a year from now, or two years from now. There were a lot of funds that have put out a lot of money very, very rapidly, and we’ll see just how big the hangover is. But we won’t know that for some time. RITHOLTZ: So some of the folks who give advice to founders like Chamath and Jason, and the crew with the All-In Podcast, they’ve been talking about — preaching really about cutting costs and reducing your burn rate, and get ready for a tough year or two. How do you see this environment? Is that good advice, or do you really have to, you know, go all out and get more funding as opposed to trying to make a more modest burn rate last longer? WENGER: There’s very little one size fits all advice that makes sense. RITHOLTZ: Fair. WENGER: Nonetheless, we held a call early this year for all of our portfolio companies. And we said this really is a big adjustment and it’s not a one or two months’ blip. This is a long-term adjustment. And it was great because we had some CEOs in our portfolio who had managed through the implosion of dot-com bubble, and they spoke about just how difficult the funding environment can get. So generally speaking, we did a lot in ’21 because we saw this coming. To me, the biggest sign of the bubble really was — that we really were reaching the tail end, was all these incubation efforts that were being raised. And I knew this because I had raised money into an incubator in ‘99, towards the end of the dot-com bubble. And I think when investors think, “Oh, I don’t even need the entrepreneur, I can just start the company myself,” that’s kind of when you know that it’s gotten too easy, right? And that’s not going to lie. So in ‘21, we took a lot of liquidity. We sold a lot of things that we were able to sell. And we told all of our portfolio companies to raise money. And so — RITHOLTZ: Last year, this is — WENGER: ‘21. Yeah. Well, it’s best to do things before. RITHOLTZ: Sure. Sure. WENGER: Right? So as a result, we have very few companies in our portfolio that need to raise. We have some, but we have very few. And then, you know, at the beginning of this year, we told everybody who had raised successfully, “You got to make this money lasts much longer than you thought when you raised it.” And so, yes, absolutely. You know, companies were operating with very inefficient growth. Because it was easy to fund inefficient growth, you could be burning $1 million, $2 million, $3 million, $4 million a month. And you know, if you were growing 405%, 50%, 60%, that was good enough. That’s not going to be the case. So you’re either growing very fast, or you have something very compelling, in which case you can raise money, or you are growing, you know, 20%, 30%, but you are growing very, very efficiently, right? So being in the sort of 50% growth, but you’re super inefficient, that’s going to be a really tough place to be. RITHOLTZ: All right, so before I get to my favorite questions, I have two questions I’ve been sitting on sort of from the book and some from your blog continuations that I want to hear where you go with this. And the first one is a quote from the book, “Malthus could not foresee the scientific breakthrough that enabled the Industrial Revolution.” I think you let him off the hook a little too easy. It’s just an abject failure of imagination. And you are in the imagination business. The Malthusians, weren’t these folks just unable to imagine any sort of progress or technological development? WENGER: Well, we have had more progress and more technological development than people were able to imagine. I think, conversely, we’re now in the opposite trap. We can’t imagine that things could get really, really bad. We can’t imagine that the climate crisis could disrupt our food supply to the point where billion people starved. We simply can’t wrap our head around this idea. So I think we’re in the opposite trap at the moment. We’ve been so used to the success of progress, and we’ve so neglected the engines that produce progress, that I think we’re in the opposite trap at the moment. RITHOLTZ: What are the other engines? Is it early stage investing from governments when the project has a 10 and 20-year ROI that the private sector won’t do it? WENGER: It’s foundational research. We’ve not had a true breakthrough in science since quantum mechanics. It’s a hundred years ago. So general relativity and quantum mechanics are hundred years ago. Now, we’ve made some progress in biology. Biology, we’ve had some really good progress. But you know — RITHOLTZ: You’re talking fundamental science not technology. WENGER: Fundamental science. RITHOLTZ: Like, I immediately think of semiconductors was a giant — WENGER: Oh, no, incredible progress. But fundamental science, we’ve not had a true big unlock in a hundred years. Now, I think when we talk about engine of progress, this is also how hard is it to start a business? How many regulations do you have to comply with? How expensive is it to comply with those regulations? We’re also talking about — we’re still subsidizing oil and gas globally, to the tune of trillions of dollars. RITHOLTZ: Yes. Yes. WENGER: Subsidizing oil and gas, it’s crazy. RITHOLTZ: Which by the way, helps to explain why so many people have an incentive to either question the impact, the source or the reality of climate change. WENGER: Yes. RITHOLTZ: There’s forces that work there. WENGER: And so, I believe we’re in this sort of opposite trap today. And you know, people like to make fun of Greta Thunberg. But young kids, young activists understand the severity of the climate crisis in a way — RITHOLTZ: Right. WENGER: — in a way that most adults don’t seem to be willing to accept. RITHOLTZ: Right. I don’t think climate change is going to impact my life. You know, I’m 60. I’m going to run out the clock. WENGER: You’re not. RITHOLTZ: Someone your age — WENGER: The reality is you’re not. You’re not going to escape. You and I are not going to escape this. It’s here, it’s now and it’s only going to get worse. RITHOLTZ: I don’t doubt that for a second, but — WENGER: And here’s the thing, I think — RITHOLTZ: I challenge — WENGER: We could live in this amazing, incredible future. Like, wouldn’t you rather live in a city that has mostly electric or all electric cars in it? Like, the air would be so much better. Wouldn’t you rather live in a world that has huge — like, think of all the Midwest, instead of growing corn to feed cows — RITHOLTZ: Right. WENGER: — super inefficient. If we can grow the meat of the cows in the vast instead, we could have like incredible forests. We could have incredible wildlife areas. Like, we could have this amazing, incredible future. We could have energy reserve. If we build more nuclear power, electricity could basically be almost free. So we have this amazing thing we can go. Instead, we’re headed for this complete disaster and we’re mostly like, “eh.” RITHOLTZ: I think that’s a fair assessment. I think you definitely have that. And I certainly see people my generation, absolutely think it’s not going to impact them or minimum impact, it’s really the grandkids’ problem. WENGER: Yeah. And it’s just — that’s totally, utterly wrong. RITHOLTZ: All right, one other curveball I have to ask you about, which involves Yuval Noah Harari, who says in Sapiens, “All value systems are based on equally valid, subjective narratives, and humans have no privileged position as a species.” You say he’s wrong. Explain. WENGER: Not just wrong, it’s completely dangerous because it opens the door to absolute moral relativism. It’s sort of like, well, if you believe that, then, you know, the ISIS narrative is just as valid, you know, and I just think that’s wrong. And I do think there’s an objective thing, which is humans have knowledge. And by knowledge, I mean, I can read a book today that somebody else wrote in some other part of the world a thousand years ago, right? No other species on the planet has this. I mean, other species have amazing things about them, but none of them has knowledge. And that puts us in a privileged position. By the way, privilege comes with obligation. That’s usually what it used to mean. Today, we think of privilege just it lets you do whatever you want. But it used to mean that you had real obligations, right? And I believe because we have the power of knowledge, we have real obligations to other species. Other species don’t have much of an obligation to us, but we have an obligation to them. RITHOLTZ: And the interesting thing about what you said is not only does no other species have the ability to access anything, anybody has written, anytime in history, pretty much this is the first generation that had access in that way, across — pretty much across the whole board. WENGER: Well, this is the amazing thing about digital technology, right? We could use it to make all the world’s knowledge accessible to everybody in the world. And great things could come from that, right? So there’s some people like Elon Musk and others who are like, “Oh, my God, the population is going to, you know, decrease a lot and that will be bad.” I’m like, no, we have 8 billion people at the moment, peak population. The present trajectory might be 11 billion, although if we don’t get on top of the climate crisis, it will decrease actually rapidly. But we’re making such poor use of it. Why? Because so many people don’t have access to knowledge, don’t have a shot. I always love the story of Ramanujan, the famous mathematician, who used to send a letter to Hardy. And Hardy was like, “We should bring this guy over to England and he would have been a very productive mathematician.” There are Einsteins, and Ramanujans, and Elinor Ostrom, and Marie Curies all around the world today, and we’re not giving them — so we’re vastly undertapping human potential. And we can use digital technology to change that and to give everybody access. And that’s one of the things, one of the great opportunities that we have in this transition to the knowledge age. RITHOLTZ: Quite, quite fascinating. So let me jump to my favorite questions that I ask all of my guests, starting with, tell us what kept you entertained over the past couple of years. What have you been watching or listening to? WENGER: I really don’t watch much. At the moment, the only thing I watch with any kind of regularity Sabine Hossenfelder’s YouTube series called Science Without the Gobbledygook. RITHOLTZ: I’ll take a look at that. I’m a giant fan of YouTube Premium, and I’m always astonished that people I know who are YouTube junkies won’t spring for the 8 bucks a month to pull out commercials and distractions. But YouTube is just an endless rabbit hole. WENGER: Well, YouTube is an example of the best and the worst of the Internet all in one place, right? There’s so much amazing knowledge like Sabine’s videos, Veritasium. I mean, you could learn almost anything from how to fix your dishwasher to how — you know, the theory of general relativity works. At the same time, YouTube is also this place where tons of people, you know, become radicalized or redpilled, or whatever it is, because the algorithm — the algorithm has the wrong objective function, right? Its objective function is engagement. It’s not lifting people up. RITHOLTZ: Tell us about some of your mentors who helped shape your career. WENGER: I was super, super fortunate when I was an early teenager. We talked about this, when I first fell in love with computers. I lived in a relatively small village in Germany. And there was one computer science student there who was maybe 10 years older than I was. And he just spent time with me, and he gave me his books, and he gave me his floppy disks with software, and he helped me sort of understand all this. And I’m forever grateful to (Anstur Guenther), wherever you are in the world. RITHOLTZ: That’s really interesting. Have you spoken to him anytime recently? WENGER: No, because I haven’t been able to find him. Basically, he seems to have disappeared. RITHOLTZ: Well, if you’re listening, reach out to Albert. Tell us — we mentioned a number of books. Tell us about some of your favorite and what you’re reading right now. WENGER: Favorites, I would say David Deutsch, “The Beginning of Infinity” is definitely one of my favorites. RITHOLTZ: I just ordered that because of you. WENGER: I’m reading at the moment, a book by Ada Palmer called “Perhaps the Stars.” It’s the fourth book in a series called the Terra Ignota Series. She’s a professor at the University of Chicago. RITHOLTZ: What sort of advice would you give to a recent college grad who is interested in a career in either entrepreneurship or venture capital? WENGER: Develop a mindfulness practice, you know, whatever works for you, whether that’s yoga, running, for me, it’s conscious breathing. I just think it’s such a superpower not to get hijacked by your emotions. It’s a true superpower. And the more humans can cultivate it, the more we can achieve. RITHOLTZ: That’s really, really intriguing. And our final question, what do you know about the world of venture today that you wish you knew 30 or so years ago when you were first getting started? WENGER: There will always be another bubble. RITHOLTZ: There will always be another bubble. That’s amazing. Just human nature can’t be avoided. WENGER: It can’t be avoided. RITHOLTZ: And what should we do in anticipation of during and after bubbles? WENGER: We should acknowledge that they will come, that they’re part of how we operate, that you can make money before, during and after. RITHOLTZ: There you go. Really, really fascinating stuff. We have been speaking with Albert Wenger. He is managing partner at Union Square Ventures. If you enjoy this conversation, well, be sure to check out any of our previous 400 or so discussions we’ve had over the past eight years. You can find those at iTunes, Spotify, or wherever you get your favorite podcasts from. We love your comments, feedback and suggestions. Write to us at mibpodcast@bloomberg.net. Sign up for my daily reading list at ritholtz.com. Follow me on Twitter @ritholtz. I would be remiss if I did not thank the crack staff that helps put these conversations together each week. Sarah Livesey is my audio engineer. Sean Russo is my head of Research. Paris Wald is my producer. Atika Valbrun is our project manager. I’m Barry Ritholtz. You’ve been listening to Masters in Business on Bloomberg Radio. END   ~~~   The post Transcript: Albert Wenger appeared first on The Big Picture......»»

Category: blogSource: TheBigPictureSep 20th, 2022

13 Best Semiconductor Stocks to Buy Now

In this piece, we will take a look at the 13 best semiconductor stocks to buy now. If you want to skip the details and jump ahead to the top five stocks in this list, then take a look at the 5 Best Semiconductor Stocks to Buy Now. The high technology sector is a double […] In this piece, we will take a look at the 13 best semiconductor stocks to buy now. If you want to skip the details and jump ahead to the top five stocks in this list, then take a look at the 5 Best Semiconductor Stocks to Buy Now. The high technology sector is a double edged sword, as has become evident throughout the course of this year. During times of strong economic growth, technology firms tend to do well, but as soon as clouds start to form, the sector starts to lose its shine. However, within the technology sector, there are some industries that will grow in spite of moderate near term headwinds simply due to their nature. One such sector is the semiconductor industry, which has come to the forefront of the investment world of late. These firms are responsible for designing and manufacturing and supplying the products that allow for the designing and manufacturing, of semiconductors – the formal term for a chip used inside every gadget, whether a laptop or a smartphone. Market research reports attest to the strength of the chip sector, with one report from Fortune Business Insights estimating that the industry was worth $527 billion last year. From then until 2029 it is expected to grow to a whopping $1.3 trillion at a compounded annual growth rate (CAGR) of 12.2%. Driving this growth will be the higher demand for consumer electronics, and developing countries needing more integrated circuits (ICs or processors) to fuel economic growth believes the research firm. Another report, this time from SpendEdge, takes a look at the semiconductor procurement and spending from large and small companies and estimates that over the course of the next five years, firms will increase their spending at a 6.81% CAGR for a $172 billion spend. It adds that as new semiconductor equipment suppliers enter the market, the overall bargaining power of the supplier is set to drop – which in turn will result in lower prices for the buyers. Finally, Expert Market Research has a CAGR of 8% for the sector during the time periods between 2022 to 2027. Its research estimates that the semiconductor sector was worth $556 billion in 2021, and through the aforementioned growth rate, it will have a value of $900 billion by 2027 end. Therefore, despite the recent shocks to major stock market indexes, the future appears to be bright for the chip sector. In our piece, some firms might catch your attention, such as Advanced Micro Devices, Inc. (NASDAQ:AMD), Alphabet Inc. (NASDASQ:GOOGL), and Amazon.com, Inc. (NASDAQ:AMZN). Photo by Slejven Djurakovic on Unsplash Our Methodology To compile our list we took a broad look at the semiconductor industry to determine which trends are shaping the sector. Then, we selected companies that are riding these waves and proceeded to rank them through Insider Monkey’s 895 hedge fund survey for the second quarter of this year. Best Semiconductor Stocks to Buy Now 13. United Microelectronics Corporation (NYSE:UMC) Number of Hedge Fund Holders: 13 United Microelectronics Corporation (NYSE:UMC) is a Taiwanese contract semiconductor manufacturer. The firm takes orders from chip design companies and then manufactures them with its machines. It is headquartered in Hsinchu, Taiwan. United Microelectronics Corporation (NYSE:UMC) is the second largest chip manufacturer operating out of Taiwan, which makes it a crucial player in the industry. It grew its revenues by a strong 22% last year, on the back of rising demand for mature process semiconductors – which are used mostly in China for a wide variety of needs. It also counts some of the world’s largest companies as its customers, such as the San Diego, California chip designer QUALCOMM Incorporated (NASDAQ:QCOM). In August 2022, the company’s sales grew by 35% annually, even as investment banks feared a slowdown in the demand for mature products. Insider Monkey’s Q2 2022 survey of 895 hedge funds saw 13 as having bought the company’s shares. Out of these, United Microelectronics Corporation (NYSE:UMC)’s largest investor is Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital which owns 72 million shares that are worth $72 million. Along with Alphabet Inc. (NASDASQ:GOOGL), Advanced Micro Devices, Inc. (NASDAQ:AMD), and Amazon.com, Inc. (NASDAQ:AMZN), United Microelectronics Corporation (NYSE:UMC) is a hot chip stock. 12. ASML Holding N.V. (NASDAQ:ASML) Number of Hedge Fund Holders: 47 ASML Holding N.V. (NASDAQ:ASML) is the only company in the world that is capable of manufacturing high end machines that are used by chip manufacturers to print semiconductors. It is headquartered in Veldhoven, Netherlands. ASML Holding N.V. (NASDAQ:ASML) holds a monopoly in its market since it is the only firm globally capable of manufacturing advanced chipmaking machines that use extreme ultraviolet (EUV) light to manufacture chips. This lends it a near continuous demand, and the next generation EUV machines dubbed High NA will be acquired by chip giant Intel Corporation (NASDAQ:INTC) and the Taiwan Semiconductor Manufacturing Company (NYSE:TSM) over the course of the next two to four years – ensuring that ASML’s plants are kept busy. The EUV systems accounted for 48% of the firm’s revenue in its second quarter of 2022. UBS raised ASML Holding N.V. (NASDAQ:ASML)’s share price target to EUR 665 from EUR 630 in August 2022, as it shared that the firm remains attractive in an uncertain macroeconomic environment. 47 out of the 895 hedge funds polled by Insider Monkey for their June quarter of 2022 holdings had held a stake in the company. Ken Fisher’s Fisher Asset Management is ASML Holding N.V. (NASDAQ:ASML)’s largest investor. It owns 4.5 million shares that are worth $2 billion. 11. Lam Research Corporation (NASDAQ:LRCX) Number of Hedge Fund Holders: 56 Lam Research Corporation (NASDAQ:LRCX) is an American company that sells and maintains chip fabrication equipment. Its machines allow chipmakers to carry several complex stages in chip manufacturing that involve depositing atoms and joining small wires together. The firm is headquartered in Fremont, California. Lam Research Corporation (NASDAQ:LRCX) is busy diversifying its revenues away from the memory segment, which has seen the company’s revenues drop due to a downturn in memory demand globally. This has started to yield results, as its revenues from the logic segment grew at a whopping 273% during the fourth quarter of its fiscal year 2022. The company also pays a $1.72 dividend for a 1.64% yield. Wells Fargo raised Lam Research Corporation (NASDAQ:LRCX)’s share price target to $475 from $460 in July 2022, stating that supply chain constraints are improving. Insider Monkey scanned 895 hedge fund portfolios for this year’s second quarter to discover that 56 had bought the company’s shares. Lam Research Corporation (NASDAQ:LRCX)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 1.9 million shares that are worth $849 million. 10. Intel Corporation (NASDAQ:INTC) Number of Hedge Fund Holders: 65 Intel Corporation (NASDAQ:INTC) is one of the largest and oldest chip manufacturing companies in the world. Headquartered in Santa Clara, California, the United States, the company is responsible for manufacturing central processing units (CPUs) for both consumers and professional users. Intel Corporation (NASDAQ:INTC) is currently in the middle of a strong attempt to regain chip manufacturing process leadership. After having dithered for years, the firm is investing heavily in capacity and tailoring plans that let it invest only when it has the orders for products in place. Additionally, the freshly passed CHIPS for America Act by the U.S. Congress is slated to increase Intel Corporation (NASDAQ:INTC)’s terminal growth rate and annual return, as it secures funding for expensive plants at a crucial phase in the semiconductor industry. Deutsche Bank reduced Intel Corporation (NASDAQ:INTC)’s share price target to $35 from $38 in September 2022, as the company guided weak revenues for its current quarter. 65 out of the 895 hedge funds polled by Insider Monkey for their Q2 2022 holdings had invested in the company. David Blood and Al Gore’s Generation Investment Management is Intel Corporation (NASDAQ:INTC)’s largest investor. It holds a $552 million stake that comes through 14.7 million shares. This strong analyst and hedge fund sentiment makes Intel one of the best semiconductor stocks to buy for the long term. Baron Funds mentioned the company in its Q2 2022 investor letter and stated that: “Then, there is the case of Intel Corporation (NASDAQ:INTC). A blue-chip tech champion with a market capitalization of over $500 billion in early 2000, the stock was trading at a P/E multiple of 42. It was a fast-growing company whose stock price and multiple declined more or less in line with its peers. However, unlike Google, Intel’s net income has grown from $7.3 billion in 1999 to $19.9 billion in 2021, a compounded annual growth rate of just 4.7%. Its growth from the dot com era has not proven to be durable, and Intel has yet to trade at the price it attained in 1999.” 9. Broadcom Inc. (NASDAQ:AVGO) Number of Hedge Fund Holders: 66 Broadcom Inc. (NASDAQ:AVGO) is a semiconductor company that focuses on providing products that are used in communications devices. These include modems, signal processors, and others. It is headquartered in San Jose, California, the United States. Broadcom Inc. (NASDAQ:AVGO) is one of the strongest chip companies in the industry when it comes to free cash flows. The firm has grown its FCFs during its fiscal year 2022, with the latest quarter showing 26% growth. Additionally, at a time when big chip firms were struggling, Broadcom Inc. (NASDAQ:AVGO) grew its semiconductor revenue by 32% during its second fiscal quarter. Healthy cash flows also allow for healthy dividends, and the firm pays a $4 dividend for a 3.26% yield. Truist lowered Broadcom Inc. (NASDAQ:AVGO)’s share price target to $630 from $658 in September 2022 but kept a Buy rating on the shares as it encouraged investors to chase the firm’s strong dividend yield. Insider Monkey’s 2022 June quarter poll of 895 hedge funds saw 66 as having invested in the firm. Broadcom Inc. (NASDAQ:AVGO)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 1.4 million shares that are worth $716 million. 8. Applied Materials, Inc. (NASDASQ:AMAT) Number of Hedge Fund Holders: 67 Applied Materials, Inc. (NASDASQ:AMAT) is a semiconductor manufacturing equipment provider headquartered in Santa Clara, California. The firm’s products allow chipmakers to carry out complex chipmaking processes such as vapor and ionic deposition, and etching and removal. Applied Materials, Inc. (NASDASQ:AMAT) is the market leader in physical and atomic deposition techniques, and these are growing in importance in the chip market as manufacturers turn towards advanced technologies that require shorter wires to link components in a semiconductor package. Applied Materials, Inc. (NASDASQ:AMAT) also has one of the highest returns on equity (ROE) in the industry, which sits at 55.5% and its return on invested capital (ROIC) is also an impressive 39.1%. It also pays a 26 cent dividend for a 1.15% yield. BofA raised Applied Materials, Inc. (NASDASQ:AMAT)’s share price target to $125 from $118 in September 2022 outlining that the firm has a strong outlook despite the turbulent economic environment. Insider Monkey studied 895 hedge fund portfolios for their Q2 2022 holdings and found out that 67 had invested in the company. Applied Materials, Inc. (NASDASQ:AMAT)’s largest investor is David Blood and Al Gore’s Generation Investment Management which owns 6 million shares that are worth $555 million. 7. Micron Technology, Inc. (NASDAQ:MU) Number of Hedge Fund Holders: 69 Micron Technology, Inc. (NASDAQ:MU) is a semiconductor company that manufactures and sells memory and storage products. These products are used in a wide variety of applications such as smartphones, laptops, and data centers. It is headquartered in Boise, Idaho, the United States. Micron Technology, Inc. (NASDAQ:MU) is one of the most solidly grounded semiconductor firms out there, as seen through its Altman-Z score of 8.24. This is nearly a new record for the company despite the cyclicality of the memory business which has seen its revenues drop. Additionally, the firm’s forward price to earnings ratio of 6.9x is lower than the historical ratio of 12.5x, indicating that there is plenty of room left for growth. MU ranks 7th in our list of the best semiconductor stocks to buy now. BNP Paribas set a $75 price target for the company in September 2022, outlining that Micron Technology, Inc. (NASDAQ:MU)’s process technology leadership gives it an advantage when recovering from the memory downturn. 69 of the 895 hedge funds part of Insider Monkey’s Q2 2022 survey had bought the company’s shares. Micron Technology, Inc. (NASDAQ:MU)’s largest investor is David Goel and Paul Ferri’s Matrix Capital Management which owns 4 million shares that are worth $221 million. 6. QUALCOMM Incorporated (NASDAQ:QCOM) Number of Hedge Fund Holders: 71 QUALCOMM Incorporated (NASDAQ:QCOM) is one of the largest semiconductor designers in the world. Its processors power the majority of Android smartphones in circulation, and the firm also sells smartphone modems, processors for connected vehicles, and other products. It is headquartered in San Diego, California, the United States. QUALCOMM Incorporated (NASDAQ:QCOM)’s revenues grew by 36% annually during its latest fiscal quarter, with its semiconductor segment posting 45% growth during the same time period. This in turn enabled the company’s operating income to double to $4.5 billion during the quarter. The company’s ROIC of 74.6% sits above its cost of capital of 9.4%, for a large economic spread. QUALCOMM Incorporated (NASDAQ:QCOM) also pays a 75 cent dividend for a 2.4% yield. 71 of the 895 hedge funds part of Insider Monkey’s survey for this year’s second quarter had held a stake in the company. Panayotis Takis Sparaggis’s Alkeon Capital Management is QUALCOMM Incorporated (NASDAQ:QCOM)’s largest investor. It owns 4.2 million shares that are worth $541 million. QUALCOMM Incorporated (NASDAQ:QCOM) joins Advanced Micro Devices, Inc. (NASDAQ:AMD), Alphabet Inc. (NASDASQ:GOOGL), and Amazon.com, Inc. (NASDAQ:AMZN) in our list of best semiconductor stocks. Click here to continue reading and take a look at the 5 Best Semiconductor Stocks to Buy Now. Suggested Articles: 10 Stocks To Buy According to Francis Chou’s Chou Associates Management Best Artificial Intelligence Stocks To Buy Now Warren Buffett’s 10 Favorite Dividend Stocks for the Rest of 2022 Disclosure: None. 13 Best Semiconductor Stocks to Buy Now is originally published on Insider Monkey......»»

Category: topSource: insidermonkeySep 15th, 2022

3 Stocks To Consider in the Still-Attractive Semiconductor Industry

The Analog/Mixed Signal Semiconductor industry is particularly attractive given its secular growth drivers and reasonable valuations. SLAB, MPWR, and MCHP are looking good now. The strong demand environment of the last few months has allowed several semiconductor players to enter into long-term, preferred supplier or other special relationships with customers. This has improved visibility for players and stabilized revenue streams. However, the industry remains capacity constrained, which is a limiting factor. While new fabs and capacity builds are ongoing, very high demand is expected over the next five to ten years because of the adoption of new technologies like AI-ML, EVs, smart cities, IoT, etc. While the longer-term outlook is extremely bright, near-term concerns related to the Fed-engineered economic slowdown cannot be ruled out. The most likely result will be increased caution at customers, who could order closer to consumption, thus reducing visibility. But this should not be a deterrent considering that valuations are supportive.   Our current picks are Silicon Laboratories, Monolithic Power Systems and Microchip.About The IndustryWe generally use our electronic gadgets without thinking, expecting them to accurately read our commands, and record, store, retrieve and process the information we throw at them. The complex process that makes this possible is enabled by semiconductor technology, whether analog (enabling the recording and measurement of real-world information), digital (processing information available in machine-readable language) or mixed signal (enabling conversion of analog signals to digital or digital to analog among other things). Most electronic gadgets use a combination of these components, whether in the consumer devices referred to above or in other applications in industrial, auto, medical, communications, IoT and other markets. The industry is cyclical and prices are elastic. Players usually serve multiple markets and have highly differentiated technology, strong relationships.Major themes for the industry:Companies in this industry are relatively better equipped to deal with the planned slowdown in the economy that the Fed is engineering. That is because these companies are somewhat behind schedule in delivering the components for the post-pandemic rush in demand. Most players are continuing to see very strong demand although some segments are seeing orders slow down or get rescheduled, which along with the slight uptick in cancellations, points to increasing caution at customers. But many of these companies have long term agreements stretching well into 2023, which means that any softness could take longer to show up in the results.The increasing use of electronics in vehicles, airplanes and defense equipment; increased factory automation; greater penetration of smartphones, tablets, notebooks, PCs and all manner of personal computing and other personal devices and smart household appliances; communications infrastructure moving to 5G; greater reliance on cloud infrastructure; the advent of artificial intelligence (AI), the Internet of Things (IoT), more advanced medical devices, EVs, self-driving cars etc continue to expand the addressable market for semiconductor chips. While any supply chain bottlenecks and resultant price increases are temporary, this constantly expanding addressable market makes this a very attractive industry to invest in. This is particularly true because the industry is capacity constrained based on today’s level of digitization, but this digitization is expected to increase manifold in the next few years because of the adoption of AI, EV and such other technologies.    The post-pandemic hybrid model, where more people move out of their homes more often but not all the time, is leading to an expansion of the overall electronic footprint of the consumer/computing segment. Near-term challenges here are related to strong uptake in the last couple of years. But there are other segments that offer opportunity, including the metaverse and consumer devices incorporating newer technologies to enable more experiences. The number of semiconductors per device and their complexities will also continue to increase. R&D budgets focused on responding to increased competition and the expanding scope of digitization will therefore also increase.The adoption of 5G communications technology, enabling 10X the data rate as 4G, is another boost to analog-mixed signal sales both in base stations and end devices. Because of the multiple input (MI) and multiple output (MO) streams the technology enables in base stations, demand for sensors and power management analog including envelope tracking chips (to manage excess power flow and thus reduce heating), as well as gallium nitride (GaN) materials are increasing. Moreover, since 5G is only involved in short range signals, it is not totally replacing 4G but supplementing it, thus adding to component demand. With the economy continuing to open up and the virus looking like it’s on its way to becoming endemic, this segment should only get stronger.Industry consolidation continues as the cost and complications of making chips rises in an environment where the adoption of semiconductors in devices of varying value requires prices to decline. Acquisitions are also driven by the need to expand R&D capabilities and to acquire key talent.U.S. government officials worry that none of the most advanced chips are currently manufactured in the country. This is considered to be a national security concern given that semiconductors are playing an increasingly larger role in AI-driven electronic weaponry and surveillance mechanisms. So the government is trying to incentivize companies to build in the U.S. TSM, the main supplier to the U.S. is setting up in the country but the plan is to have this on a much larger scale. How exactly this situation will play out for the industry is unknown. Increasing capacity would depress prices. And U.S. production would increase cost. So much depends on the government’s contribution (perhaps through the CHIPS Act).Zacks Industry Rank Indicates Attractive ProspectsThe Zacks Semiconductor – Analog and Mixed industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #82, which places it at the top 33% of more than 250 Zacks-classified industries.The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates attractive near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions over the past year, it is clear that analysts are optimistic about this group’s earnings growth potential. As a result, 2022 estimates have risen 39.9% over the past year, while 2023 estimates have risen 2.5%.Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.Stock Market Performance Is AttractiveSince October of last year, the Zacks Semiconductor – Analog and Mixed industry has traded at a premium to the broader Zacks Computer and Technology Sector. It has also traded at a premium to the S&P 500 though much of this period.Overall, the industry lost 7.4% of its value over the past year while the broader sector lost 27.6% and the S&P 500 lost 10.2%.One-Year Price PerformanceImage Source: Zacks Investment ResearchIndustry's Current ValuationOn the basis of forward 12-month price-to-earnings (P/E) ratio, the industry is trading at a 15.57X multiple, which is a discount to both the S&P 500’s 17.52X and the broader computer and technology sector’s 21.29X. At the current level, it is also trading below its median level of 18.51X over the past year.The current P/E of 15.57X is between its lowest point of 13.91X and highest point of 24.39X over the past year.Forward 12 Month Price-to-Earnings (P/E) RatioImage Source: Zacks Investment Research3 Promising Stocks Offering Exposure to the IndustrySilicon Laboratories Inc. (SLAB): A fabless semiconductor company, Silicon Laboratories provides various analog-intensive mixed-signal products like wireless microcontrollers and sensors mainly in the U.S. and China. They find application across a broad range of end markets such as the Internet of Things (IoT), industrial automation and control, smart metering, smart lighting, commercial building automation, consumer electronics, asset tracking and medical instrumentation.The company is a beneficiary of ongoing strength in industrial, commercial and smart city applications, as well as its extremely broad customer base. The breadth of its customers across markets and regions offers greater stability during economic upheavals. While there was some channel inventory buildup during the quarter, management said that it was because of the shutdowns in China. Overall, the America business was very strong, as was Europe while Asia was impacted by the softness in China.Silicon Laboratories beat June quarter estimates by 28.6% and in the last 60 days, the 2022 estimates for this Zacks Rank #1 (Strong Buy) company increased 75 cents (20.5%). The 2023 estimate increased 61 cents (14.6%).The shares are down 11.0% over the past year.Price and Consensus: SLABImage Source: Zacks Investment Research Monolithic Power Systems, Inc. (MPWR): The company designs, develops, and markets integrated power semiconductor solutions and power delivery architectures for computing and storage, automotive, industrial, communication and consumer applications markets.Monolithic Power has not seen any negative impact from the pandemic at all. In fact, being a semiconductor company, it has been one of the enablers of the digital economy that supported regular operations during this time. As a result, the company has seen particularly strong revenue growth from the June quarter of 2020.Its recent results benefited from the broad range of end markets that it caters to and reflect continued broad-based strength across these end markets, including enterprise data (data center and workstation computing), computing and storage (commercial notebooks and storage), consumer (broad-based but home appliances and gaming were particularly strong), industrial (mainly power source and security) and auto (strength was in ADAS, digital cockpit and lighting). The results are driven by the ramp up of new, higher-margin products and long-term customer relationships, which are not only driving share gains, but also generating strong margins.Monolithic Power topped the Zacks Consensus earnings estimate by 10.5% in the last quarter. Its 2022 EPS estimate has increased 95 cents (8.2%) in the last 60 days. Additionally, its 2023 estimate increased 72 cents (5.3%). While estimates are still moving up, the magnitude of increase has reduced significantly because of the growing uncertainty.Shares of this Zacks Rank #2 (Buy) stock are down 8.6% over the past year.Price and Consensus: MPWRImage Source: Zacks Investment Research  Microchip Technology Incorporated (MCHP): Microchip Technology Incorporated operates in the Americas, Europe and Asia. It develops, manufactures and sells smart, connected, and secure embedded control solutions such as general purpose 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit embedded microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.Microchip is a bit capacity constrained and despite capacity improvements in the last quarter, management continued to say that demand far outpaces its ability to supply. Additionally, more than 50% of its backlog is non-cancellable under its Preferred Supply Program (PSP), which greatly improves visibility. Management attributed the strong demand the company is seeing to its Total Systems Solutions strategy. Investors would also be interested to know that its strong cash flows have enabled the company to pay down a substantial portion of its debt over the last few years and also paya consistent dividend. In the last quarter, the board announced a 37.8% increase in the dividend.  Microchip beat estimates by 2.2% in the last quarter. The Zacks Consensus Estimate for 2022 has increased 25 cents (4.6%) in the last 60 days. The 2023 estimate increased 14 cents (2.5%) during the same period.#3 (Hold) ranked Microchip’s shares are down 16.6% over the past year.Price and Consensus: MCHPImage Source: Zacks Investment Research This Little-Known Semiconductor Stock Could Be Your Portfolio’s Hedge Against Inflation Everyone uses semiconductors. But only a small number of people know what they are and what they do. If you use a smartphone, computer, microwave, digital camera or refrigerator (and that’s just the tip of the iceberg), you have a need for semiconductors. That’s why their importance can’t be overstated and their disruption in the supply chain has such a global effect. But every cloud has a silver lining. Shockwaves to the international supply chain from the global pandemic have unearthed a tremendous opportunity for investors. And today, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most in a new FREE report. It's yours at no cost and with no obligation.>>Yes, I Want to Help Protect My Portfolio During the RecessionWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microchip Technology Incorporated (MCHP): Free Stock Analysis Report Monolithic Power Systems, Inc. (MPWR): Free Stock Analysis Report Silicon Laboratories, Inc. (SLAB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 13th, 2022

Futures Jump As Dollar Slide Accelerates

Futures Jump As Dollar Slide Accelerates It appears that Goldman's trading desk was right again. Just days after the vampire squid's sellside researchers were warning that the market has not yet bottomed, the bank's far more accurate flow traders said that "The Pain Trade Is Now Up, The CPI Doesn't Matter At All, And The Q4 Chase Starts Early", and on Monday morning it was all engines go in global stock markets, with US equities poised to extend their brisk rally from last week as investors braced for the final CPI before the Federal Reserve’s September decision. Futures for the S&P 500 and Nasdaq 100 both rose 0.5% each at 715 a.m. in New York, extending above their Friday session highs, putting the underlying gauges on track for a fourth day of gains, while Europe's Stoxx 600 index climbed for a third day, and Asia was almost all green. Treasury yields dropped and the dollar retreated further as traders bet inflation is near peaking even as Fed talking heads ramped up hawkish rhetoric (it's ok, the Fed is always 9-12 months behind the curve). And as the USD slumps, the euro is extending gains, rising the most in six months against the dollar, as hawkish commentary from ECB policy makers continue.  Crude oil and industrial metals gained as the greenback’s descent countered demand concerns, while speculation grows that China will ease on covid-zero policies after the coming plenum. In US premarket trading, cryptocurrency-exposed stocks including Riot Blockchain and Coinbase edged higher as Bitcoin added to last week’s gains, rising above the $22,000 level. Meanwhile, Apple rose, with analysts positive on the company as pre-order data for the latest versions of its iPhone point to strong interest and demand. Here are some other notable premarket movers: Bristol Myers Squibb (BMY US) rises 6% in premarket trading after deucravatinib received approval from the US Food and Drug Administration for the treatment of moderate-to-severe psoriasis with no “black box” warnings. Watch Cable One (CABO US) after it was downgraded to equal-weight at Wells Fargo, which took less positive stance on the sector, even as the stock remains “the best house in the cable neighborhood.” Keep an eye on Bill.com Holdings (BILL US) as the stock was initiated with an overweight rating at Morgan Stanley, which cites multiple growth drivers for the infrastructure software firm. US railroad stocks may be in focus as tens of thousands of industry workers could be on strike by the end of this week. Keep an eye on CSX (CSX US), Norfolk Southern (NSC US) and Union Pacific (UNP US). US chipmakers could be in focus after Reuters reports the Biden administration plans to broaden curbs on US shipments of semiconductors for artificial intelligence and chipmaking tools to China. Watch Lam Research (LRCX US), Applied Materials (AMAT US), KLA (KLAC US), Nvidia (NVDA US) and AMD (AMD US). Keep an eye on CoStar Group (CSGP US) as it was initiated at market perform by BMO Capital Markets, which sees the commercial real estate information provider as a “poster child” for the info services sector, but finds it hard to justify an outperform recommendation. Stocks have rebounded amid more speculation of oversold systematic funds and another short squeeze - conditions similar to the mid-June bounce. Now, traders are preparing for tomorrow's inflation data which are expected to show an 8% increase in the overall August consumer price index from the same month last year, down from 8.5% in July yet still historically elevated, and to cement the point that peak inflation has been hit. The outcome will be significant for the Fed’s decision next week and could sway equities in either direction, although the worst case scenario is now fully priced in: traders almost fully expect another jumbo-sized Fed hike next week, following two 75-basis-point increases, and forward guidance by Fed officials in the run-up to the policy meeting has supported that view. Any easing in the Fed's tightening resolve would be seen a very dovish and send stocks surging even more. “It seems policy makers were keen to reinforce their hawkish position ahead of the blackout period -- which we’re now in -- potentially with an eye on that data point,” said Craig Erlam, a senior market analyst at Oanda. “There was perhaps a feeling that a softer reading could see market expectations slip which they clearly want to avoid. It will be interesting to see how traders now respond as we’ve seen how keen they were to hop aboard the ‘dovish pivot’ train before.” Indeed, on Friday, Fed Governor Christopher Waller said he favors “another significant” increase in interest rates when the central bank meets later this month, signaling his backing for a 75 basis-point move. Fed Bank of St. Louis President James Bullard said he was leaning “more strongly” toward a third straight boost of that magnitude, while his Kansas City counterpart Esther George noted officials have a “clear-cut” case for continuing to remove monetary support. Meanwhile, thanks to receding inflation fears, markets are pricing in little prospect of a recession, according to Tatjana Puhan, deputy chief investment officer at Tobam SAS. Risk assets are buying into the narrative of a soft landing even though a hard landing is more likely, she said. "We should be ready for a significant impact on the economy,” Puhan told Bloomberg Television. “I can easily see markets going down another 20%,"she said, echoing Guggneheim's Scott Minerd. Markets also have to digest the implications of Ukraine’s counter-offensive, after its forces continued their rapid advance in the Kharkiv region, exploiting a retreat of Russian defenses.  In Europe, the Stoxx 50 rallied 1.4% climbing for a third day, with retailers leading the advance amid optimism plans to curb energy bills will provide some relief for consumers squeezed by a cost-of-living crisis. The FTSE MIB outperforms, adding 1.8%, Stoxx 600 lags, adding 0.9%. Retailers, miners and autos are the strongest-performing sectors. Here are some of the biggest European movers today: Mining stocks outperform the broader European market again on Monday as metals rise on increased demand amid China’s peak construction season, a weaker dollar and risks to supply Ferrexpo and shares in other companies with operations in Ukraine surge in European trading Monday as the country’s military continued a rapid advance in the Kharkiv region at the weekend Atos shares jump for a second day, as much as 6.9%, as minority shareholder Sycomore Asset Management called for the chairman to resign during an interview with Reuters Pernod Ricard shares rise after declining as much as 1.2% after Deutsche Bank cut the recommendation to hold on macro headwinds and lagging advertising & promotional/sales Thule shares drop as much as 16% after a profit warning from the Swedish bike, car and outdoor equipment manufacturer. Handelsbanken says “considerable 2023 uncertainty remains” Tate & Lyle falls as much as 7.1% after Jefferies downgrades to hold from buy on increasing cost pressures in Europe, saying is now more exposed to “tricky” European market Electrolux shares fall as much as 6.8% as the Swedish appliance producer expects 3Q earnings to decline sharply. Handelsbanken says “significant cuts” to 2022-2023 estimates are needed HelloFresh shares fall as much as 6.7% on Monday after the USDA warned of possible E. coli contamination for some ground beef packages in HelloFresh meal kits shipped in July Orpea slumps as much as 21% as the company warns that profit will be lower than expected, citing rising energy and salary costs, with analysts noting there are still downside risks to shares According to another group of Goldman Sachs strategists - the ones who are pretty much always wrong - said US firms that do most of their business at home will fare better than those exposed to Europe, where a recession is all but guaranteed. A team led by David Kostin say that while the path of US growth may be “uncertain,” the economic situation in Europe is dire. Translation: buy European stocks. Earlier in the session, Asian stocks began the week by heading for a third straight daily advance, bolstered by the weakening of the dollar and oil prices. The MSCI Asia Pacific Index climbed as much as 0.8% on Monday, poised for its highest close in nearly two weeks, as tech and materials shares rallied. TSMC rose 2.4%, boosting Taiwan’s gauge, after the firm said August sales rose 59% from a year ago and Reuters reported that the US plans to broaden curbs on chip shipments to China. Markets were closed for holidays in China, Hong Kong and South Korea. Benchmarks in the Philippines, Taiwan, Japan and Australia were all up. India’s S&P BSE Sensex Index also rose ahead of the nation’s retail inflation data for August, while Thailand’s main gauge was higher for a fifth-straight day to erase this year’s decline amid optimism the economic recovery has momentum.  The dollar and oil prices weakened ahead of a much-awaited US inflation report on Tuesday, with investors preparing for super-sized interest-rate hikes in the US. Investors are also watching for Russia’s response after reports overnight of the advance of Ukraine forces in Kharkiv region. Japanese stocks advanced for a third day, driven by gains in electronics makers, while reopening plays rallied on reports of reduced restrictions for inbound tourists. The Topix rose 0.7% to 1,980.22 as of 3:02 p.m. Tokyo time, while the Nikkei advanced 1.2% to 28,542.11. The yen resumed weakening after regaining more than 1% against the dollar Friday. Keyence Corp. contributed the most to the Topix gain, increasing 1.9%. Out of 2,169 shares in the index, 1,449 rose and 596 fell, while 124 were unchanged. “On many measures, positioning continues to appear quite extreme to us and thus there is a possibility that a lower than expected m-m core CPI print may lead to a knee-jerk positive reaction in stocks,” Chetan Seth, Asia Pacific equity strategist at Nomura wrote in a note. On Ukraine, he said that “it’s too early to extrapolate this event for the market,” and that the supply of some key commodities will likely take time to increase. The pause in the dollar’s rally has given Asian stocks some breathing room, with the MSCI measure up about 3% from a trough last week. But with many signals indicating more dollar strength and China’s lockdowns continuing, flows into the region are likely to remain under pressure. In FX, the Bloomberg Dollar Spot Index extended declines, with all G-10 FX rising, barring the yen, which trades at around 142.75/USD. Some more details: The BBDXY Index was set for its biggest two-day drop in a month as the greenback weakened against all of its Group-of-10 peers apart from the yen. The euro rose as much as 1.6% against the greenback on Monday to trade just shy of the 1.02 handle. Bunds, Italian bonds fell across the curve and money markets rose ECB tightening bets after Bundesbank President Joachim Nagel said the central bank must take further clear steps if the inflation picture stays the same. ECB Executive Board member Frank Elderson said more hikes will come as “it’s very important that the expectations that the people have on how the inflation will develop in the medium to long term will not become deanchored” The pound rose against a broadly weaker dollar though trailed the euro and other European currencies. Data show the UK economy recovered more slowly than expected from a slump triggered by an extra bank holiday in June, with industrial production and construction both shrinking Sweden’s krona was the best-performing G-10 currency as the nation is on the cusp of a power shift, casting aside the ruling Social Democrats in favor of a center-right opposition bloc as vote counting nears the finish line The yen resumed its downtrend after jumping more than 1% on Friday as players adjusted positions before US inflation figures due on Tuesday. JGBs followed Treasuries lower. On Sunday, Deputy Chief Cabinet Secretary Seiji Kihara said during a TV program that Japan has “to take necessary steps while closely monitoring developments including excessive, one-sided moves in the exchange rate” In rates, US Treasuries edged higher with gains led by front-end of the curve, steepening spreads slightly while the dollar retreats. US yields were richer by up to 2.5bp across front-end of the curve with 2s10s, 5s30s spreads steeper by 0.5bp and 1.5bp on the day; 10-year yields around 3.29%, trading 1bp cheaper vs. bunds and slightly outperforming gilts in the sector. A US double auction of 3- and 10-year notes imposes an obstacle for further Treasuries advance. The US double auction kicks off at 11:30am with $41b 3-year note sale, followed by $32b 10-year reopening at 1pm.  3-year WI around 3.567% is above auction stops since 2007 and ~36.5bp cheaper than August stop-out which traded 0.3bp through the WI level. Auctions conclude Tuesday with $18b 30-year bond reopening. In commodities, WTI crude jumps 1% to around $87.63; spot gold rises roughly $9 to trade near $1,726/oz. Natural gas prices fall as the market awaits details of the European Union’s intervention plan. Bitcoin has risen above USD 22k amid the broader risk appetite, whilst Ethereum topped USD 1,750 in early trade. Looking at today's calendar, we have Japan's August machine tool orders, UK July monthly GDP, construction output, industrial and manufacturing production, index of services, trade balance, Germany July current account balance, Italy July industrial production. There is nothing on the US calendar. Market Snapshot S&P 500 futures up 0.5% to 4,087.25 STOXX Europe 600 up 0.8% to 423.90 MXAP up 0.7% to 155.35 MXAPJ up 0.8% to 509.68 Nikkei up 1.2% to 28,542.11 Topix up 0.7% to 1,980.22 Hang Seng Index up 2.7% to 19,362.25 Shanghai Composite up 0.8% to 3,262.05 Sensex up 0.7% to 60,217.05 Australia S&P/ASX 200 up 1.0% to 6,964.46 Kospi up 0.3% to 2,384.28 Gold spot up 0.5% to $1,724.64 U.S. Dollar Index down 1.05% to 107.86 German 10Y yield little changed at 1.71% Euro up 1.5% to $1.0188 Top Overnight News from Bloomberg The Biden administration plans to broaden curbs on US shipments of semiconductors for artificial intelligence and chipmaking tools to China, Reuters reported, citing unidentified people familiar with the matter The ECB’s jumbo increase in interest rates last week was designed to keep inflation expectations anchored, according to Vice President Luis de Guindos German inflation will only peak in the first quarter of 2023 as surging energy costs trickle down to consumers, weighing on purchasing power and tipping the country into recession during the winter months, according to the Ifo institute French Finance Minister Bruno Le Maire said the government will cut a levy on industrial production at a slower pace than initially planned as it seeks to meet deficit reduction targets despite lower economic growth Natural gas prices fell as the market awaits details of the European Union’s plan to intervene in an unprecedented energy crisis that is already destroying demand for the fuel Russia hit power plants deep behind Ukrainian lines, causing blackouts across the northeast of the country as Kyiv’s forces pressed a lightning offensive that’s reversed months of Moscow’s advances A more detailed look at global markets courtesy of Newsquawk Asia-Pac stocks took impetus from last Friday’s gains on Wall Street in a holiday-thinned start to the week. ASX 200 traded higher with the mining-related sectors and tech resuming their recent outperformance, while the top-weighted financials sector was also kept afloat as the major banks increased mortgage rates after last week’s RBA rate hike. Nikkei 225 rose above 28,500 as Japan mulls steps to open its borders including scrapping its daily limit of 50k arrivals of overseas visitors by October and waiving visa requirements. Hang Seng, Shanghai Comp and KOSPI were closed for the Mid-Autumn Festival. Top Asian News US is reportedly planning to broaden curbs on sales to China of semiconductors used for AI and chipmaking tools, according to Reuters sources. Chinese President Xi will visit Central Asia and meet with Russian President Putin in his first trip outside of China since the pandemic began, according to Reuters. PBoC called for efforts to facilitate the broader use of the digital yuan, according to Xinhua. Japanese Deputy Chief Cabinet Secretary Kihara said the government must take steps as needed against excessive, one-sided currency moves. Kihara also said they won’t rule out issuing government bonds to fund an expected increase in defence costs and they are ready to consider steps in the not-so-distant future to further open Japan’s borders to overseas visitors including scrapping its daily limit of 50k arrivals of overseas visitors by October, according to Nikkei. Japan is eyeing allowing foreign visitors to travel freely without travel agency bookings and waiving visa requirements, with PM Kishida to make the decision as early as this week, according to FNN. European bourses extend on the upside seen at the open despite a lack of news catalysts during the European morning. European sectors are mostly firmer, with Autos & Parts outperforming closely followed by Banks, Retail, and Basic Resource, whilst the flip side sees defensive sectors, with Healthcare, Food & Beverages, and Telecoms in the red. Stateside, US equity futures are posting gains, with marginal outperformance seen in the NQ vs peers. Top European News EU offers to reduce Northern Ireland border controls, with EU's Sefcovic encouraged by the UK's intention for a negotiated settlement on trade, while the EU could cut customs checks across the Irish Sea to just a few lorries a day. Furthermore, Sefcovic said the border would be 'invisible' under European Commission plans provided that the UK gave the EU real-time data on trade movements, according to FT. However, Senior UK officials are reportedly downplaying EU's offer on Brexit this weekend, with one reason being that the offer does not go far enough, according to Eurasia's Rahman. ECB's de Guindos said the 75bps hike last week was aimed at anchoring inflation expectations; higher rates may also weigh on economic growth, via Bloomberg. ECB's de Guindos said he does not know how much rates will climb. Orpea Slumps 21% After Suprise Profit Warning Bulgaria Says in Talks to Double Gas Supplies From Azerbaijan Russia Strikes Power Plants as Ukrainian Forces Extend Advances Euro Climbs Most in Five Months as Traders Eye Hawkish ECB Speak FX DXY recoiled further from 108.860 at best, through 108.500 and 108.00, to 107.800 and its lowest level since late August. EUR/USD saw a boost to levels close to 1.0200 from a 1.0061 low on a combination of factors, including hawkish ECB rhetoric and reports that Russian troops withdrew from key areas in Eastern Ukraine following a counterattack over the weekend. The JPY sits as the G10 laggard following hefty recovery gains on Friday, whilst Deputy Chief Cabinet Secretary Kihara was the latest to join the Japanese verbal intervention. Fixed Income Recovery momentum is building towards a breach of big figures in the major contracts, with no major catalyst for the upside. Bunds, Gilts and the 10 year T-note recently topped out at 144.01, 105.87 and 115-30 respectively. Commodities WTI and Brent futures are once again choppy as prices initially fell at the resumption of electronic trade, before recovering as European players entered the fray. Spot gold is firmer amid the softer Dollar, and eyes its 21 and 50 DMAs to the upside at USD 1,733.70/oz and USD 1,741.62/oz. Base metals in general are boosted by the weaker Dollar; 3M LME copper eyes USD 8,000/t to the upside. Russian official reiterates that some aspects of the grain deal need to be reviewed, via Interfax. US Event Calendar Nothing on deck DB's Jim Reid concludes the overnight wrap Keep an eye out for the monthly survey results published soon after this email arrives this morning. It's fair to say that respondents are pretty bearish. Overall the whole report, which is in presentation form for the first time, should be a good guide to current sentiment. One bit of potentially positive news over the weekend was that a Ukrainian counter offensive operation in the north-east of the country seems to have led to it successfully claiming back land. Although this will be greeted well by markets, the surprise success does increase the chances of a more aggressive response from Russia. In market terms, actual war developments have been relatively quiet of late with most of the focus on Russian gas (or lack of it) into Europe. So this brings the military progress back in some focus. So all eyes back on the next step from both sides. For the rest of the week, there's only one focal point and that's the US CPI report tomorrow, the last before the Fed's September 21st meeting. The Fed are now in their blackout period so that will reduce the central bank chatter somewhat this week. Our economists last week raised their forecast to a 75bps hike at next week's meeting while keeping the terminal rate at 4.1% for early next year. They believe the risks are on the upside. See here for more on their latest thinking. Importantly for the Fed, on Friday, we will also get inflation expectations from the University of Michigan consumer survey. US Retail sales data on Thursday will also be closely watched too but is unlikely to move the dial for the Fed. For US inflation, our economists expect a slight decline in the headline CPI number (-0.09% MoM) but an acceleration of +0.30% in core, which would continue the pattern from July's reading (unchanged and +0.3%, respectively) which came in lower than expected. They believe the YoY headline CPI should fall five-tenths to 8.0%, while core should tick up a tenth to 6.0%. The recent slump in commodities, with WTI firmly below $100 per barrel throughout the month, is likely to put downward pressure on the headline number as are gas prices being down -12% over the month. However, the resilience of the labour market is among the forces that could propel the core gauge higher. Expect a fair amount of attention on what now seems to be sharp falls in used cars after runaway price rises during covid. On the flip side our models suggest rents should continue to climb for a few more months before falling. So they'll likely be a few opposing forces in the release. Speaking of the consumer, we will get retail sales data for August on Thursday and our US economists expect a +0.6% MoM reading, up from last month's flat print. As gasoline prices continue their downward trend, whether this assuages the inflationary pressures on consumer spending will be important. US PPI (Wednesday), business inventories and industrial production data (both Thursday) will provide more insight into supply-side pressures. Turning to Europe now, and the BoE planned meeting has been postponed a week due to the period of mourning following the Queen's death. However the UK will remain in the spotlight when it comes to economic data, with inflation (Wednesday), monthly GDP (today), retail sales (Friday) and labour market data (tomorrow) all due. For the record headline UK CPI is expected to stay at 10.1% YoY. Elsewhere in the region, we will also get the ZEW survey for Germany and the Eurozone tomorrow. Late on Friday our economists updated their GDP forecasts and with the NS1 gas shut off now looking terminal they expect 2023 GDP to fall -3 to -4%. To be fair their zero gas scenario earlier in the summer suggested -5 to -6% growth for 2023 but the impressive gas build over the intervening period means the worse case isn’t quite as bad as feared. Lots of moving parts though. See here for their update. At the end of the week, an array of economic activity indicators will be out in China, in their usual monthly data dump, including industrial production, retail sales, new home prices and property investment (Friday). The gauges will follow this week's downside surprises in trade data and inflation, so markets will be parsing the numbers to assess the magnitude of the economic softness. Our Chief China economist overviews the impact of China's covid policy on its economy and mobility here and the team has downgraded their Q3 GDP forecast to 2.5% YoY (previously 3.5%). Overnight in Asia equity markets have kicked off higher building on Friday’s broad-based rally on Wall Street amid thin trading this morning. As I type, the Nikkei (+1.11%) is trading higher while the S&P/ASX 200 (+1.09%) is also trading in positive territory on improved risk sentiment. Elsewhere, in mainland China, Hong Kong and South Korea markets are closed for a holiday. In overnight trading, US stock futures are flat with contracts on the S&P 500 (-0.07%) and NASDAQ 100 (-0.06%) just below flat, so not much market reaction to the news out of Ukraine in the earliest hours of the week. Meanwhile, yields on the 10yr USTs (3.32%) are less than a basis point higher in Asia. Over the weekend, Seiji Kihara a senior Japanese government official, expressed concerns about the yen’s slide by opining that the government must take necessary steps to counter excessive declines in the Japanese yen as the currency has weakened to a 24-year low versus the US dollar. Crude oil prices are trading lower at the start of the week in early Asian trade as the imposition of strict COVID-19 restrictions in China is dampening the commodity’s demand outlook from the world’s second largest economy. As we go to print, Brent futures are down -1.41% at $91.53/bbl with the WTI futures (-1.47%) lower trading at $85.51/bbl. Looking back at last week now and the magic number was 75, with the ECB and BoC delivering 75bp hikes, and pricing moving closer to certainty that the Fed would do the same at their September meeting next week. In line sovereign yields legged higher in advanced economies. Notably, risk sentiment held in though, driving equities up on the week. Starting with bonds, the ECB raised rates +75bps, with President Lagarde hinting more rate hikes were still forthcoming, noting inflation was “far too high” and policy rates were “far away” from adequate levels to bring inflation down. The entire bund curve shifted higher, albeit with some flattening, given the stricter stance in policy. 2yr bunds climbed +22.6bps (-0.7bps Friday) and 10yr bunds were +17.3bps higher (-1.9bps Friday) on the week. 10yr BTPs kept the pace, increasing +17.6bps over the week (+4.4bps Friday). EU energy ministers met Friday, agreeing a comprehensive plan was necessary to combat the current gas crisis. While specifics weren’t agreed upon (as expected), they noted a wide suite of tools – including gas price caps, emergency liquidity for utilities, and further demand reduction plans – would be leveraged. In the first trading week since the announcement that Nord Stream 1 flows would not resume due to a “leak”, European natural gas futures prices actually fell -3.53% on the week (-6.10% Friday). Part of that was probably from the tough talk from energy and fiscal ministers, but there was probably also an element of taking out risk premium; NS1 flows can’t go below zero so we are possibly getting closer to peak bad news. However as my CoTD (link here) showed on Friday, next winter could also be pretty tough for gas supplies in Europe. But I suppose at least we should know that by now. The lack of upward follow through in gas prices contributed to better risk sentiment over the week with the STOXX 600 climbing +1.06% (+1.52% Friday), and the DAX scraping out a modest +0.29%, helped by a +1.43% bump on Friday. In the US, Chair Powell took his last opportunity before the September meeting blackout period to express a steadfast resolve in the fight against inflation, which left the market pricing +72.7bps of tightening at the September meeting, so pretty close to a full +75bp hike priced in, and pricing of terminal rates breaching 4% early next year, finally catching up closing to the long standing house view. Treasury yields sold off and the curve flattened like their European counterparts. 2yr Treasuries were +16.9bps higher (+5.3bps Friday) and 10yrs increased +12.0bps (-0.7bps Friday), leaving the 2s10s curve at -25.3bps. The S&P 500 was strong, increasing +3.65% (+1.53% Friday), while the interest rate sensitive NASDAQ was very resilient in the face of tighter Fed policy and up +4.14% (+2.11% Friday). Tyler Durden Mon, 09/12/2022 - 07:49.....»»

Category: worldSource: nytSep 12th, 2022

3 Technology Stocks With Modest Dividend Yield to Bet On

Here we have shortlisted three high-quality dividend paying tech stocks - TXN, ASX and VSH - that may fetch promising returns amid the current highly volatile market environment. Technology stocks have been among the worst performers in 2022 so far. The Zacks Computer and Technology sector has plunged 29% year to date (YTD), while the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 indexes have fallen 12.6%, 24.2% and 17.2%, respectively.The sector is suffering from inflationary pressure, higher wages and currency fluctuations. Supply-chain disruptions due to an acute shortage of chips and several other components are affecting the profitability of the companies in the space. Additionally, the ongoing Russia-Ukraine war has increased worries for investors about the near-term prospects of tech companies.Enterprises are postponing their large IT spending plans due to a weakening global economy amid ongoing macroeconomic and geopolitical issues. In July 2022, Gartner lowered its forecast for worldwide IT spending growth rate to 3% from 4% mentioned earlier. The research firm’s report highlights that 2022 IT spending growth will be much slower than 2021 due to spending cutbacks across devices, software, IT services and communication services areas.The aforementioned challenges are likely to persist in the near term, thereby negatively impacting the overall financial performances of the majority of tech stocks. But does that mean investors interested in tech stocks should stay away from investing in the space?We believe that amid the ongoing macroeconomic headwinds and highly volatile market scenario, investing in high-quality dividend-paying tech stocks like —Texas Instruments Incorporated TXN, ASE Technology Holding Co., Ltd. ASX and Vishay Intertechnology, Inc. VSH — might fetch you handsome returns.A stock with a history of increasing dividends is considered healthy and offers a capital appreciation opportunity irrespective of stock market movements. Dividend growth stocks generally act as a hedge against economic uncertainty and offer downside protection with a consistent increase in payouts.Picking the Right Dividend StocksWe have run the Zacks Stocks Screener to identify stocks that have a dividend yield in excess of 2% with five-year historical dividend growth of more than 0.1%. Furthermore, we have narrowed down our search by considering stocks considering with a Zacks Rank #2 (Buy) and a dividend payout ratio of less than 60%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Let’s discuss the abovementioned tech stocks in detail:Texas Instruments is an original equipment manufacturer of analog, mixed signal and digital signal processing (DSP) integrated circuits. The company is benefiting from a solid rebound in the automotive market.The solid demand environment in the industrial, communication equipment and enterprise systems markets is a major positive. Additionally, strong momentum across the Analog segment, owing to robust signal chain and power product lines, is contributing well to the top line. Also, the robust Embedded Processing segment is performing well.The stock has a dividend yield of 2.77% and a five-year historical dividend growth of 17.38%. Further, TXN's payout ratio is 50% of earnings at present. Check Texas Instruments’ dividend history here.Texas Instruments Incorporated Dividend Yield (TTM) Texas Instruments Incorporated dividend-yield-ttm | Texas Instruments Incorporated QuoteASE Technology is a provider of semiconductor manufacturing services in assembly and testing. The company develops and offers complete turnkey solutions covering front-end engineering testing, wafer probing and final testing as well as IC packaging, materials and electronic manufacturing services.ASE Technology has been benefiting from increasing demand in multi-die and co-packaging platforms. It recently unveiled an advanced packaging platform VIPack to enable vertically integrated package solutions. The launch of VIPack is a positive as it represents ASE’s next-generation 3D heterogeneous integration architecture that extends design rules and achieves ultra-high density and performance.Solid demand for traditional electronic manufacturing services and System-in-Package services are contributing well to top-line growth. Additionally, ASX’s ability to cater to high volume and reliable business needs is noteworthy.The company has a dividend yield of 6.31% and a five-year annualized dividend growth of 10.52%. Its dividend payout ratio is 29% of earnings. Check ASE Technology’s dividend history here.ASE Technology Holding Co., Ltd. Dividend Yield (TTM) ASE Technology Holding Co., Ltd. dividend-yield-ttm | ASE Technology Holding Co., Ltd. QuoteVishay Intertechnology is a global manufacturer and supplier of semiconductors and passive components. The company’s products include metal oxide semiconductor field-effect transistors (MOSFETs), Diodes and Optoelectronic Components.Vishay Intertechnology is steadily gaining from its robust resistor, diode, capacitor, inductor and optoelectronics product lines. Further, a recovery in the automotive sector and strong momentum across the industrial, telecommunications, power supplies markets are driving the top line.In addition, Vishay Intertechnology’s robust magnetics is continuously driving the specialty business. Further, growing momentum across the areas of power transmission and electro cars with the help of robust capacitors is a tailwind. Additionally, VSH’s firm focus on expanding its manufacturing capacities remains a major driver.VSH has a dividend yield of 2.1% and a five-year annualized dividend growth of 8.12%. Also, the company's payout ratio is 14% of earnings at present. Check Vishay Intertechnology’s dividend history here.Vishay Intertechnology, Inc. Dividend Yield (TTM) Vishay Intertechnology, Inc. dividend-yield-ttm | Vishay Intertechnology, Inc. Quote Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Texas Instruments Incorporated (TXN): Free Stock Analysis Report Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report ASE Technology Holding Co., Ltd. (ASX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 9th, 2022

A Broken Clock Cries Wolf Twice A Day

A Broken Clock Cries Wolf Twice A Day Submitted by QTR's Fringe Finance As someone who is skeptical of monetary policy and that looks at economics and markets through an Austrian lens, there are two perfunctory phrases I have heard Keynesians constantly rattle off, non-stop, for the last decade. The phrase “even a broken clock is right twice a day” is an idiom for someone who constantly gets things wrong, only to very rarely get something right. “Crying wolf” is a phrase that refers to the lesson of not causing a panic or calling for help when it isn’t necessary. The juxtaposition of the two in the title is an homage to my favorite proverb-bending, Tourette’s-sporting movie bartender, Gerard Parkes, from The Boondock Saints. Keynesian cheerleaders who use these phrases - the same ilk who happily tune in to watch financial media sniff the ass of whatever Fed member happens to be offering up their special brand of paid speech farts that day - use them to parry critics of their monetary theories like they’re drowning and these words will somehow conjure up oxygen. Of course, under the shallow veneer of arrogance and hubris cast forth every time someone utters one of these two phrases, lies a small sliver of worry. It isn’t as though Keynesians can’t understand what Austrian economists are arguing - in fact, modern monetary theory is something of an over-understanding of economics - they just choose to ridicule it. And they likely can’t help but wonder in the back of their minds if these dumbed down “fringe” financial conspiracy theorists are on to something. Economic academics, Keynesians and Modern Monetary Theorists have tricked themselves into thinking that because they have the capacity to learn the complex jargon of their faux ideologies, that the entire field of economics, and all of the basic laws that govern it, somehow become a malleable, ethnocentric Play-Doh that they can twist, bend and finesse to their needs. In other words, they think they have it all figured out. “Some of the biggest cases of mistaken identity are among intellectuals who have trouble remembering that they are not God.” - Thomas Sowell The Austrian school represents a return to basics and reality for economics. For Keynesians, the Austrian school is a check coming due for a meal that they were told they could eat perpetually - and have been for decades - without paying for. Austrian economics may not be the total antithesis of everything that they learned in school, but the further off the path we veer – $30 trillion in debt, unlimited quantitative easing, blowing out the money supply, trying to sanction countries replete with resources and productive capacity - the more Keynesians feel they have to justify their logic, and the more that small sliver of worry grows ever so slightly larger in the back of their heads. I mean, how else do you explain Paul Krugman constantly taking to Twitter to try and justify himself? Here’s an incomprehensible thread he published this weekend to explain another, self-described “incomprehensible” thread from the day prior. His Tweets are like those browser windows that replicate and pop up again every time you try to close out of one - except that instead of trying to navigate your way off a porn site, Krugman’s Twitter is caught up in a far more grotesque self-fulfilling circle jerk, an intellectual masturbatory exploration of useless jargon, models and inane musings that could easily double as the torturous jingles played over loud speakers at Guantanamo during “advanced interrogation techniques”. But that’s how it goes: Austrians warn of a coming reality check while Keynesians do…well, whatever the hell Krugman is doing. Every time Keynesian economists and the Fed figure out a new way to manipulate numbers, economic variables or definitions to their advantage, they feel even more empowered to cast aspersions onto those who suggest day of reckoning will eventually come. “A broken clock is right twice a day!” “How long are you going to cry wolf?” If you have the means to support my work and want to become a subscriber, you can use this link for 50% off: Get 50% off forever Therein lies some of the misunderstanding about these two sayings. Keynesians think they are making great points every time they point out that Austrians only get things right once in a while. “Sure Peter Schiff predicted the housing crisis, but he also said gold would be going to $5000! He’s an idiot that only gets things right once in a while,” they’ll say. But the truth is that the general argument being made by Austrian economists is that the whole fucking charade is going to come to an end at some point. At that point, there will be no quick fix, there will be no jargon, there will be no debt jubilee and there will be no more Band-Aids in the Fed’s quiver. Peter Schiff often says it’s like a man biding his time at the poker table as hands come and go. The Keynesians may have most of the chips now, but at the end of the day, if he plays his one big hand right, he believes he’ll have them all. Lest we forget that politicians and economists generally have to learn the hard way. After all, they don’t predict or acknowledge recessions or depressions ahead of time or as they’re happening, and, either through ignorance or purposeful manipulation, they never really seem to have a single negative word of criticism about the path that they are on. In some respects, it’s even more ironic because these two phrases about only rarely getting things right could be turned around and pointed right back at the Keynesians: What happened to “transitory” inflation? What happened to the idea that low inflation was the problem? What happened to saying that subprime housing was contained in 2008? Are stocks ever overvalued? Does Neel Kashkari really believe that we can print infinite amounts of money with no consequences? Surely, if roles were reversed and financial media was littered with Austrian sycophants, perhaps Keynesians would be cast as the outsiders. But as we all know, this isn’t the case – which brings us to where we are right now. No matter how much the government and the Federal Reserve try to downplay what’s occurring right now economically in the United States, there should be absolutely no doubt about it: we have never experienced a situation like the one we are in right now in modern history: Inflation is occurring at a brutalizing rate that, if measured by 1970 standards, would likely be the highest or near the highest inflation in the country’s history We just conducted another monetary policy “experiment” wherein we printed more money over the course of two years than we had in all of the years combined prior to them Our country’s productive capacity is severely crippled and the White House is waging a war on energy at a time when we have an energy shortage We are standing at stark odds with Russia and China economically, more than we have in many decades. They are exploring their own reserve currency. Equities are almost the most egregiously valued that they’ve been in their history, as measured by Shiller PE and market cap/GDP With over $30 trillion in debt, we have just hiked interest rates at the quickest clip in decades Examining this list, even an elementary school student could tell you that we may be on the verge of a shit sandwich the likes of which this country has never seen before. Yet, we continue to have ticky-tacky discussions about inflation coming down a couple tenths of a percent or jobs numbers slightly beating expectations. In a lot of respects, given how wild the circumstances are, it’s fascinating to see people pretty much acting as though it is business as usual for our country. I think that’s the furthest thing from the truth. The reality of the situation is that it doesn’t appear market participants, politicians or even the Fed understand what a perfect storm the above variables could be creating. This is why I can’t help but laugh when people call me a “broken clock” or say that I’m “crying wolf”. The thing is: I don’t mind being wrong. In fact, I hope I am wrong. But while some may think it takes bold ignorance to continue suggesting that there will be an Austrian reckoning coming to the economy and markets, such an ignorance pales in comparison to the ignorance necessary to pretend as though everything is normal. The lesson about not crying wolf makes sense: you don’t want to cause a panic when it isn’t necessary – I agree with that. But given the unique and unprecedented circumstances unfolding right now in the United States, what the hell are you supposed to do when the wolves are, in fact, looming large right outside of our door? Thank you for reading QTR’s Fringe Finance . This post is public so feel free to share it: Share Tyler Durden Wed, 09/07/2022 - 13:42.....»»

Category: smallbizSource: nytSep 7th, 2022

How Will The Chip Ban Affect Nvidia’s Stock?

Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD) have been directed by the U.S. government to stop the sales of their latest data center and enterprise chips, specifically the A100 and H100 chips. These chips have a number of different uses including AI, enterprise, networking, and cloud. Nvidia’s stock fell in after-hours trading, as the news came through, […] Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD) have been directed by the U.S. government to stop the sales of their latest data center and enterprise chips, specifically the A100 and H100 chips. These chips have a number of different uses including AI, enterprise, networking, and cloud. Nvidia’s stock fell in after-hours trading, as the news came through, with the stock retreating by almost 7%. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Series in PDF Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q2 2022 hedge fund letters, conferences and more   Nvidia May face Huge Losses Nvidia has more to lose as the ban may result in $400 million in losses according to Tom’s Hardware. Nvidia provided the following statement: “On August 26, 2022, the U.S. government, or USG, informed NVIDIA Corporation, or the Company, that the USG has imposed a new license requirement, effective immediately, for any future export to China (including Hong Kong) and Russia of the Company’s A100 and forthcoming H100 integrated circuits. DGX or any other systems which incorporate A100 or H100 integrated circuits and the A100X are also covered by the new license requirement. The license requirement also includes any future NVIDIA integrated circuit achieving both peak performance and chip-to-chip I/O performance equal to or greater than thresholds that are roughly equivalent to the A100, as well as any system that includes those circuits. A license is required to export technology to support or develop covered products. The USG indicated that the new license requirement will address the risk that the covered products may be used in, or diverted to, a ‘military end use’ or ‘military end user’ in China and Russia. The Company does not sell products to customers in Russia." Nvidia’s A100 and H100 chips are primarily targeted at enterprise systems, these clients range from Microsoft to Amazon, etc. Nvidia has been struggling with clients as it has faced a number of issues stemming from a fall in crypto demand, and a general lull in the gaming market. Macroeconomic headwinds and cyclicality of the semiconductor market continue to affect Nvidia’s sales. Investors' initial reactions show the market is already highly uncertain, and valuations that were much higher in the not-so-recent past have pared back. A number of semiconductor players specifically Micron have warned that valuations and market exuberance are not sustainable, and in previous cycles when the semiconductors went into a cyclical downturn, semiconductor stocks declined significantly more than they have recently. Financial conditions have also started to show weakness, with cash during the most recent quarter coming in lower than the previous year. Cash per share continues to be around $6.8, which would indicate the stock trades at 21x cash, similar companies such as AMD (Nasdaq: AMD), trade at a slightly higher valuation, with cash per share at 22x. The financial impact is likely to be anywhere from $400-$500 million on revenue, and Nvidia has guided that yearly revenue will come in anywhere from $2-3 billion lower. The lower guidance from management will also affect margins, primarily as pricing pressure takes a toll on profits. Net profit margins currently average around 33%-34% but could slip by 500 bps over the next year. That current trend is likely to result in a net profit of $1.8 billion for the quarter and could send the second stock further lower. Financial conditions do not suit outperformance over the medium term, and Nvidia’s stock may reach new 52-week lows as a result. Investors will continue to wait and watch, but early signs show that unless we see a significant recovery in demand, a new normal may have been established. The current RSI for the stock stands at 31, indicating that the stock might be slightly oversold. The stock is currently down 60% from its 52-week high. The open interest stands at 1.54, and investors are increasingly bearish on the stock's future. But implied volatility has been slowly trending downwards hitting .54 down from a recent high of .816 NVidia had already been under pressure before the news came out and now with a ban on chips Nvidia’s stock may remain under pressure for a while as the backdrop of interest rates, and economic headwinds continue to weigh on the stock. Should you invest $1,000 in NVIDIA right now? Before you consider NVIDIA, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and NVIDIA wasn't on the list. While NVIDIA currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here Article by Parth Pala, MarketBeat.....»»

Category: blogSource: valuewalkSep 1st, 2022

NVIDIA (NVDA) Tumbles on Weak Q2 Earnings, Dim Q3 Guidance

Along with supply-chain issues, NVIDIA's (NVDA) second-quarter performance reflects a negative impact of the weakening demand for its chips used in the gaming end market. NVIDIA Corporation NVDA stock plunged 4.6% in Wednesday’s extended trading session after the graphic chip maker reported lower-than-expected earnings results for the second quarter of fiscal 2023 and provided muted guidance for the third quarter.For the second quarter, NVIDIA reported non-GAAP earnings of 51 cents per share, which missed the Zacks Consensus Estimate by 8.9%. Moreover, the reported figure plunged 51% year over year and 63% sequentially.Revenues of $6.7 billion met the consensus mark and increased 3% year over year. However, the top line declined 19% on a quarter-over-quarter basis. The company’s revenues came way below its May 2022 forecast of $8.10 billion (+/-2%) due to weaker sales across its Gaming and Data Center business segments.NVIDIA Corporation Price, Consensus and EPS Surprise NVIDIA Corporation price-consensus-eps-surprise-chart | NVIDIA Corporation QuoteSegment DetailsNVIDIA reports revenues under two segments – Graphics and Compute & Networking.Graphics includes GeForce GPUs for gaming and personal computers, the GeForce NOW game-streaming service and related infrastructure, along with solutions for gaming platforms, Quadro GPUs for enterprise design, GRID software for cloud-based visual and virtual computing and automotive platforms for infotainment systems.Graphics accounted for 41.7% of fiscal second-quarter revenues. The segment’s top line plunged 28% year over year and 39% sequentially to $2.8 billion.Compute & Networking represented 58.3% of fiscal second-quarter revenues. The segment comprises Data Center platforms and systems for artificial intelligence, high-performance computing and accelerated computing, the DRIVE development platform for autonomous vehicles and Jetson for robotics and other embedded platforms.Compute & Networking revenues soared 50% year over year and 6% sequentially to $3.91 billion.Market Platform’s Top-Line DetailsBased on the market platform, Gaming revenues (43.7% of revenues) plunged 33% year over year and 44% sequentially to $2.04 billion. The decline was primarily due to a lower sell-in of Gaming products, reflecting reduced channel partner sales due to macroeconomic headwinds.Revenues from Data Center (45.2% of revenues) jumped 61% year over year and 1% from the previous quarter to $3.81 billion. This year-over-year upswing was driven by the strong demand for its Ampere architecture products from cloud computing and AI providers. However, the company noted that the business unit’s sales were below expectations due to ongoing supply-chain disruptions and lower sales to China’s hyperscale customers, who are affected by economic conditions.Professional Visualization revenues (7.5% of revenues) decreased 4% year over year and 20% sequentially to $496 million, primarily due to lower sales of desktop workstation graphic processing units, which more than offset the benefits of an increase in mobile revenues.Automotive sales (1.7% of revenues) in the reported quarter totaled $220 million, up 45% on a year-over-year basis and 59% sequentially, mainly driven by the increased revenue contribution from self-driving and artificial intelligence cockpit solutions.OEM and Other revenues (1.9% of revenues) plunged 66% year over year and 11% sequentially to $140 million, mainly due to the weak performance of Cryptocurrency Mining Processors, which generated nominal sales during the quarter compared with $266 million in the year-ago quarter. Moreover, lower notebook OEM sales also negatively impacted the overall business unit’s performance during the second quarter.Operating DetailsNVIDIA’s non-GAAP gross margin contracted by 20.8% year over year to 45.9%, mainly due to a $1.34 billion charge for inventory and related reserves and warranty reserves.Non-GAAP operating expenses flared up 38.2% year over year and 8.8% sequentially to $1.74 billion on higher compensation-related expenses associated with employee growth and increased engineering development costs.The non-GAAP operating income slumped 57% year over year and 66% quarter over quarter to $1.33 billion.Balance Sheet and Cash FlowAs of Jul 31, 2022, NVDA’s cash, cash equivalents and marketable securities were $17.04 billion, down from $20.34 billion as of May 1, 2022.As of Jul 31, 2022, the total long-term debt (including current maturities) was $10.95 billion, flat with the previous quarter ended May 1, 2022.NVIDIA generated $1.27 billion in operating cash flows, down from the year-ago quarter’s $2.68 billion and the previous quarter’s $1.73 billion. The free cash flow was $824 million, down from the year-ago quarter’s $2.48 billion and the previous quarter’s $1.35 billion. In the first half of fiscal 2023, the company generated operating and free cash flows of $3 billion and $2.17 billion, respectively.In the second quarter, the company returned $3.45 billion to shareholders through $100 million in dividend payouts and $3.35 billion in share repurchases. During the first half of fiscal 2023, NVIDIA paid $200 million in dividends and bought back common stocks worth $5.34 billion.Third-Quarter GuidanceFor the third quarter of fiscal 2023, NVIDIA anticipates revenues of $5.90 billion (+/-2%), way lower than the Zacks Consensus Estimate of $7.02 billion. The company expects Gaming and Professional Visualization revenues to decline sequentially as OEMs and channel partners continue to reduce inventory levels. Nonetheless, a sequential increase in Data Center and Automotive segment revenues is likely to partially offset the negative impact of weak Gaming and Professional Visualization sales.The GAAP and non-GAAP gross margins are projected at 62.4% and 65%, respectively (+/-50 bps). GAAP and non-GAAP operating expenses are estimated at $2.59 billion and $1.82 billion, respectively.GAAP and non-GAAP other income and expenses, excluding gains and losses from non-affiliated investments, are anticipated at approximately $10 million.The GAAP and non-GAAP tax rate for the quarter is estimated at 9.5% (+/- 1%). The company projects to make capital expenditure between $550 million and $600 million during the quarter.Zacks Rank & Stocks to ConsiderNVIDIA currently carries a Zacks Rank #3 (Hold). Shares of NVDA have decreased 41.4% year to date (“YTD”).Some better-ranked stocks from the broader Computer and Technology sector are Clearfield CLFD, Silicon Laboratories SLAB and Taiwan Semiconductor TSM. While Clearfield and Silicon Laboratories each sport a Zacks Rank #1 (Strong Buy), TSM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Clearfield's fourth-quarter fiscal 2022 earnings has been revised upward by 10 cents to 80 cents per share over the past 30 days. For fiscal 2022, earnings estimates have moved 36 cents north to $3.13 per share in the past 30 days.Clearfield’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 33.9%. Shares of CLFD have soared 50.8% YTD.The Zacks Consensus Estimate for Silicon Laboratories’ third-quarter 2022 earnings has increased 22.9% to $1.02 per share over the past 30 days. For 2022, earnings estimates have moved 14.2% up to $4.18 per share in the past 30 days.Silicon Laboratories’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 63.6%. Shares of SLAB have decreased 34.9% YTD.The Zacks Consensus Estimate for Taiwan Semiconductor's third-quarter 2022 earnings has been revised a penny southward to $1.69 per share over the past 30 days. For 2022, earnings estimates have moved 37 cents north to $6.30 per share in the past 60 days.TSM's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.9%. Shares of the company have decreased 28.9% YTD. This Little-Known Semiconductor Stock Could Lead to Big Gains for Your Portfolio The significance of semiconductors can't be overstated. Your smartphone couldn't function without it. Your personal computer would crash in minutes. Digital cameras, washing machines, refrigerators, ovens. You wouldn't be able to use any of them without semiconductors. Disruptions in the supply chain have given semiconductors tremendous pricing power. That's why they present such a tremendous opportunity for investors. And today, in a new free report, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most. It's yours free and with no obligation. >>Give me access to my free special report.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report Silicon Laboratories, Inc. (SLAB): Free Stock Analysis Report Clearfield, Inc. (CLFD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksAug 25th, 2022

2 Wireless Stocks With Decent Dividend for a Steady Return

Qualcomm (QCOM) and Ericsson (ERIC) are two stocks within the Zacks Wireless Equipment industry that reward shareholders with a decent risk-adjusted dividend yield. The Zacks Wireless Equipment  industry appears well-poised to benefit from the exponential growth of mobile broadband traffic and home Internet solutions as user demand for coverage speed and quality has increased manifold. The industry is benefiting from higher demand for scalable infrastructure for seamless connectivity amid a wide proliferation of IoT devices. A steady pace of 5G deployment and investments by leading carriers to upgrade their network infrastructure to meet the increasing demand for flexible data, video, voice and IP solutions also seems to have buoyed the industry’s growth. Expansion of fiber optic networks by carriers to support their 4G LTE and 5G wireless standards, and wireline connections is also acting as a tailwind.However, the demand-supply imbalance owing to an acute shortage of chips, which are the building blocks for various technological equipment, has largely affected the profitability of companies due to inflated equipment prices. High inflationary pressures are further escalating raw material prices. To weed off the liquidity crisis, various firms have resorted to cost-cutting measures such as furloughs, layoffs and reductions in discretionary expenses. Some firms looked beyond the short-term funding avenues, such as revolving lines of bank credit, to bridge temporary cash shortfalls. Others have employed dividend cuts or suspension of dividend payments until the overall situation improved. Although a bulk of the firms across diverse sectors increasingly followed the drift, a handful has chosen to swim against the tide and continue rewarding shareholders with steady dividends.We have run the Zacks Stocks Screener to identify stocks that have a dividend yield in excess of 2% with five-year historical dividend growth of more than 0.1%. In order to shortlist the stocks, we have screened those that possess either a Zacks Rank #3 (Hold), Zacks Rank #2 (Buy) or Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Here are two key picks from the Zacks Wireless Equipment industry.Qualcomm Incorporated QCOM: Headquartered in San Diego, CA, Qualcomm designs, manufactures and markets digital wireless telecom products and services based on the Code Division Multiple Access (CDMA) technology. The products include CDMA-based integrated circuits (ICs) and system software for wireless voice and data communications, as well as global positioning system (GPS) products.Qualcomm is one of the largest manufacturers of wireless chipset based on baseband technology. The company is focusing on retaining its leadership in 5G, chipset market and mobile connectivity with several technological achievements and innovative product launches. It is likely to help users experience a seamless transition to super-fast 5G networks, delivering low-power resilient multi-gigabit connectivity with unprecedented range and Qualcomm's best-in-class security. This, in turn, would further offer the flexibility and scalability needed for broad and fast 5G adoption through accelerated commercialization by OEMs. Qualcomm is reportedly the only chipset vendor with 5G system level solutions spanning both sub-6 and millimeter wave bands and one of the largest RF (radio frequency) front-end suppliers with design wins across all premium-tier smartphone customers. It is also witnessing healthy traction in EDGE networking that helps to transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets. The automotive telematics and connectivity platforms, digital cockpit and C-V2X solutions are fueling emerging automotive industry trends such as the growth of connected vehicles, the transformation of the in-car experience and vehicle electrification. The buyout of Veoneer, Inc. offers Qualcomm a firmer footing in the emerging market of driver-assistance technology, as it aims to extend the Snapdragon Ride Advanced Driver Assistance Systems (ADAS) portfolio. Qualcomm believes that it is on track to become the largest smartphone RF front-end supplier by revenues in the near future.This Zacks Rank #3 stock has a dividend yield of 2.1% and a five-year historical dividend growth of 4.4%. It has a long-term earnings growth expectation of 15%. Check Qualcomm’s dividend history here.QUALCOMM Incorporated Dividend Yield (TTM) QUALCOMM Incorporated dividend-yield-ttm | QUALCOMM Incorporated QuoteEricsson ERIC: Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is a leading provider of communication networks, telecom services and support solutions. The company is reportedly the world’s largest supplier of LTE technology with a significant market share and has established a large number of LTE networks worldwide. It is in demand among operators to expand network coverage and upgrade networks for higher speed and capacity.Ericsson is focusing on 5G system development and has undertaken many notable endeavors to position itself for market leadership on 5G. The company believes that the standardization of 5G is the cornerstone for digitizing industries and broadband. Ericsson foresees mainstream 4G offerings giving way to 5G technology in the future. The deployment of 5G networks is expected to boost the adoption of IoT devices, with technologies like network slicing gaining more prominence.This Zacks Rank #3 stock has a dividend yield of 2.4% and a five-year historical dividend growth of 22.9%. Check Ericsson’s dividend history here.Ericsson Dividend Yield (TTM) Ericsson dividend-yield-ttm | Ericsson Quote This Little-Known Semiconductor Stock Could Lead to Big Gains for Your Portfolio The significance of semiconductors can't be overstated. Your smartphone couldn't function without it. Your personal computer would crash in minutes. Digital cameras, washing machines, refrigerators, ovens. You wouldn't be able to use any of them without semiconductors. Disruptions in the supply chain have given semiconductors tremendous pricing power. That's why they present such a tremendous opportunity for investors. And today, in a new free report, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most. It's yours free and with no obligation. >>Give me access to my free special report.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Ericsson (ERIC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksAug 25th, 2022

Bull of the Day: C.H. Robinson Worldwide (CHRW)

With C.H. Robinson, investors would add solid long-term growth potential inside an integral industry, alongside dividends, solid value, and much more. C.H. Robinson Worldwide CHRW is one of the largest logistics platforms on the planet. CHRW stock is bucking the downward trend of 2022 and its recent surge sent C.H. Robinson to new all-time highs.With C.H. Robinson, investors would add solid long-term growth potential inside an integral industry, alongside dividends, solid value, and much more.The Logistics Giant’s Growth Pitch C.H. Robinson is one of the world's largest logistics platforms, with nearly $30 billion in freight under management. The company provides freight transportation and logistics, as well as outsource solutions, information services, and beyond to roughly 100,000 global customers.C.H. Robinson provides access to 85,000 transportation providers worldwide, including contract motor carriers, railroads, air freight carriers, and ocean carriers. The company is also bullish that its low single-digit market share provides it a “great opportunity” to continue to grow across all services. C.H. Robinson’s expansion efforts include a big push to boost its office network outside of North America.In general, the third-party logistics industry presents room for continued expansion in a globally-interconnected world, where streamlined shipping and transportation services are paramount. C.H. Robinson’s revenue climbed 6% in 2020 and a whopping 43% in 2021 to surge from $16 billion in total fiscal 2020 sales to $23 billion last year.Image Source: Zacks Investment ResearchC.H. Robinson topped our Q2 earnings and revenue estimates on July 27 and it provided upbeat guidance in the face of economic slowdown fears. Higher pricing across most of its services and higher truckload and ocean volume helped drive its strong top and bottom line showing in Q2 and across the entire first half.  C.H. Robinson’s consensus Zacks EPS estimates for Q3 is now up over 20% since its second quarter release, with its fiscal 2022 earnings estimate around 14% higher and FY23 up 5%. CHRW’s bottom-line positivity helps it land a Zacks Rank #1 (Strong Buy) at the moment.Zacks estimates call for C.H. Robinson’s revenue to climb another 15% in 2022 to hit $26.5 billion to help lift its adjusted earnings by 35%. The company is expected to see its earnings and revenue fall in 2023 as it faces a string of very difficult to compete against years of growth.That said, C.H. Robison could easily post far-stronger-than-projected earnings results going forward, having topped our quarterly EPS estimates by over 31% in three out of the last four quarters—including a 38% Q2 beat.Image Source: Zacks Investment ResearchOther FundamentalsC.H. Robison’s executive team acknowledged the lingering questions regarding global economic growth, inflation, and consumer discretionary spending when it reported its financial results on July 27. The company noted that its “flexible non-asset-based business model” helps it deal with some of the inflationary pressures. CHRW remains focused heavily on finding ways to thrive at all times and “maximize long-term shareholder returns through all phases of the business cycle and various economic scenarios.”For instance, C.H. Robison’s been returning tons of value to shareholders, including nearly $340 million worth of share repurchases last quarter. When factoring in its quarterly dividend payment, the company returned 100% more cash to shareholders YoY in Q2. And despite economic headwinds, the firm upped its capital expenditures outlook for 2022, as it invests in a “higher level of internally developed software.”C.H. Robison’s 2% dividend yield tops the S&P 500’s 1.5% and many other firms in its highly-ranked Transportation – Services industry. The space currently sits in the top 17% of over 250 Zacks industries right now. CHRW’s dividend yield looks even stronger considering the stock is up nearly 5% in 2022 vs. its industry’s 9% drop and the market’s 14% fall.Image Source: Zacks Investment ResearchLong-Term Outperformance & Valuation Investors should know that the stock has ripped above both its 200-day and 50-day moving averages recently. C.H. Robinson shares are up 25% in the last year, and they closed regular trading Tuesday near fresh records at $111.96 per share.Stretching our view back, C.H. Robinson stock is up 110% in the last 10 years and 72% in the past five to nearly match the benchmark—with it up over 2,000% in the last 25 vs. the S&P 500’s 460%.Even with the impressive run and the outperformance, C.H. Robinson is trading at close to a 50% discount to its own 5-year highs in terms of forward earnings at 15.2X. Better still, CHRW stock is trading right near its lowest levels in the last 15 years. This also represents a discount to the S&P 500 and comes not too far above its Zacks Econ sector, even though it has crushed the space when it comes to price performance. Profiting from the Metaverse, The 3rd Internet Boom (Free Report): Get Zacks' special report revealing top profit plays for the internet's next evolution. Early investors still have time to get in near the "ground floor" of this $30 trillion opportunity. You'll discover 5 surprising stocks to help you cash in.Download the report FREE today >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksAug 10th, 2022

The 22 best original shows on Apple TV Plus, from "Ted Lasso" to "Severance"

Apple TV Plus ($5/month) has a smaller library of shows than its competitors, but the service has produced some must-watch original series. When you buy through our links, Insider may earn an affiliate commission. Learn more.Adam Scott in Apple TV's "Severance"Apple TV Apple TV Plus is home to a growing selection of award-winning series. Some of the service's best-reviewed original shows include "Ted Lasso" and "Severance." Apple TV Plus costs $5/month or $50/year, and new members get a one-week free trial. Apple TV Plus has a smaller library of shows than competitors like Hulu and Netflix, but it's amassed an impressive lineup of original series since it launched in 2019.The service has debuted over 40 exclusive shows, including some major award winners like "Ted Lasso." One of the platform's newest series, "Severance," is up for 14 awards at the 2022 Emmys. This roster of originals helps Apple TV Plus overcome its lack of network shows. Unlike Hulu, Paramount Plus, and Peacock, Apple TV Plus can't rely on a back catalog of programs from channels like NBC, CBS, Fox, or ABC. All the service has to offer are its exclusive, so potential members should consider the lineup carefully before committing to a $5/month or $50/year subscription. If you're on the fence, you can also get a free seven-day trial.To help you decide if Apple TV Plus is worth the price of admission, we rounded up a list of the best original shows you can watch right now. And if you're already a subscriber, these picks are all well worth your time. To make our list, each show needs to have at least one "Certified Fresh" season on review-aggregator Rotten Tomatoes, plus an average rating of over 60% for every season combined. Check out the 22 best shows on Apple TV Plus'The Afterparty'Apple"The Afterparty" is a murder-mystery series where each episode is told from the perspective of a different character. Set during the afterparty of a 10-year high school reunion, a classmate is found dead and everyone becomes a suspect. Every episode fits into a different genre: there's a psychological thriller, a musical, an animated installment, and a police procedural, among others. Tiffany Haddish, Sam Richardson, and Zoe Chao will reprise their roles in season two, where a murder featuring mostly new characters will unfold during a wedding. "The Afterparty" is "Certified Fresh" on Rotten Tomatoes with a 90% rating.'Black Bird'Apple TV PlusFeaturing the final TV performance of the late Ray Liotta, "Black Bird" is based on a true story. Taron Egerton stars as Jimmy Keene, a drug dealer who is offered the chance to shorten his jail sentence if he can coax a confession out of a suspected serial killer (Paul Walter Hauser). The limited series has garnered critical acclaim with special note going to its performances. The show has a "98% Certified Fresh" rating on Rotten Tomatoes.'Central Park'Apple TV PlusJosh Gad stars as Birdie, the narrator of Apple TV's adult animated sitcom "Central Park." The show comes from the creators of "Bob's Burgers" and uses a similar animation style. It follows the Tillerman family, who live in Central Park, as they fight against corporations and an elderly heiress who wants to buy up the park's land to turn it into condominiums. The show is also a musical, and features songs by Sara Bareilles, Alan Menken, Cyndi Lauper, and Gad. Ahead of the season two premiere in 2021, Apple renewed it for a third season. "Central Park" holds a "97% fresh" average on Rotten Tomatoes.'Dickinson'Apple TVHailee Steinfeld stars as the title character in "Dickinson." The unique series uses period-accurate costumes and production design but takes a more modern approach with its storytelling. With contemporary dialogue and turns of phrase, plus music from Taylor Swift and Billie Eilish, "Dickinson" presents a realistic and relatable portrayal of a girl grappling with society, gender roles, and sexuality, despite it being set in the 19th century. Each episode takes inspiration from one of Emily Dickinson's poems. The show wrapped up with a "92% fresh" average on Rotten Tomatoes; all three seasons are "Certified Fresh."'The Essex Serpent'Apple TV PlusClaire Danes and Tom Hiddleston star in "The Essex Serpent," a period-romance miniseries inspired by Sarah Perry's novel of the same name. Danes plays Cora, a widow who moves from London to Essex when sightings of a mythical creature are reported. She forms a bond with a local pastor (Hiddleston), but when tragedy strikes, her presence is blamed for the shocking appearance of the serpent. "The Essex Serpent" has a "76% Certified Fresh" rating on Rotten Tomatoes. Since it was marketed as a limited series, a second season is unlikely.'For All Mankind'Apple"For All Mankind" is an alternate-history drama that takes place in a world where the Soviet Union landed on the moon first and the space race never ended. The show's characters include real-life astronauts like Neil Armstrong, Buzz Aldrin, and Michael Collins; they're used as a jumping off point to explore fictional outcomes. The show has a "91% fresh" average on Rotten Tomatoes with three seasons available to stream.'Home Before Dark'AppleInspired by the real-life story of young journalist Hilde Kate Lysiak, "Home Before Dark" stars Brooklynn Prince as Hilde. The show follows her as she moves from Brooklyn to her dad's small coastal hometown. In her pursuit of truth and passion for storytelling, she uncovers a cold case that the town has tried to bury. "Home Before Dark" holds an "81% fresh" average on Rotten Tomatoes. Two seasons are available to stream on Apple TV Plus.'The Last Days of Ptolemy Grey'Apple TV+Samuel L. Jackson stars as the title character in "The Last Days of Ptolemy Grey," a miniseries inspired by Walter Mosley's novel. Ptolemy Grey is a 91-year-old man with dementia who gets assigned a new caretaker (Dominique Fishback) and learns of a treatment that will temporarily restore his lost memories. He gets the treatment and uses it to investigate the death of his nephew. "The Last Days of Ptolemy Grey" is "88% Certified Fresh" on Rotten Tomatoes.'Little America'"Little America"Apple TV Plus"Little America" is an anthology comedy that follows the lives of immigrants in America. Each episode has a new cast and tells a different story about immigrants and the struggles they face. Kumail Nanjiani serves as an executive producer, and co-wrote the seventh episode with his wife Emily V. Gordon and series' creator Lee Eisenberg. Filmmakers Janicza Bravo and Sian Heder also contributed to the first season. "Little America" is "95% Certified Fresh" on Rotten Tomatoes. In December 2019, Apple TV greenlit a second season.'Little Voice'Apple TV+Sara Bareilles created "Little Voice" for Apple TV with Jessie Nelson. The pair previously worked together on "Waitress." Featuring a soundtrack of original songs, "Little Voice" is about Bess (Brittany O'Grady), a 20-something singer who learns to use her voice despite rejection and family issues. The show also chronicles Bess' experiences with dating and romance. There is one season of "Little Voice," and it has a "77% Certified Fresh" rating on Rotten Tomatoes.'Loot'Apple TV+"Loot" is one of Apple's latest original series. Molly Novak (Maya Rudolph) is newly divorced from her husband of 20 years, and the settlement awarded her $87 billion. At a loss for what to do with her new fortune, she decides to re-engage with her charitable foundation in an effort to find herself.  The show received generally positive reviews and has an "81% Certified Fresh" on Rotten Tomatoes. In July, it was renewed for a second season.'Mythic Quest'"Mythic Quest."Apple"Mythic Quest" is a workplace sitcom that comes from Charlie Day, Megan Ganz, and Rob McElhenney, who are all known for their work on "It's Always Sunny In Philadelphia." McElhenney also stars as Ian Grimm, the creative director of the video game studio the series is set at. The show opens with the studio about to release a major expansion to their flagship game, Mythic Quest, but tensions are high between Ian and his employees. The series holds an average "97% fresh" on Rotten Tomatoes over two seasons, plus two specials that were filmed and released during lockdown. A third season is set to premiere in 2022, and a fourth has already been greenlit.'Pachinko'Apple TV+Adapted from the novel by Min Jin Lee, "Pachinko" is a decades-spanning epic that details four generations of a Korean family, mainly focusing on the era of Korean history where the country was occupied by Japan. The show stars Korean actors and was produced in three languages: Korean, Japanese, and English. "Pachinko" is "98% Certified Fresh" on Rotten Tomatoes, and the streamer greenlit a second season ahead of its season one finale. 'Prehistoric Planet'Apple TV PlusProduced in collaboration with the BBC, "Prehistoric Planet" is a natural history miniseries that aims to show viewers what the planet was like 66 million years ago. Using a combination of wildlife filmmaking techniques and advanced computer generated images, "Prehistoric Planet" paints a picture of Earth while the dinosaurs roamed freely. Sir David Attenborough narrates the docuseries, which also features an all-new score by Academy Award winner Hans Zimmer. "Prehistoric Planet" holds a "100% Certified Fresh" rating on Rotten Tomatoes.'Schmigadoon!'Apple TV+"Schmigadoon!" parodies and pays homage to the golden age of musical theater with original songs and an extremely talented ensemble cast.Josh and Melissa (played by Keegan-Michael Key and Cecily Strong) go on a hiking trip to try and rekindle their fractured relationship. They get lost and cross a bridge into Schmigadoon, a magical town where every day is a musical and everyone is an archetype: there's the town mayor (Alan Cumming), the shy schoolteacher (Ariana DeBose), the young ingenue (Dove Cameron), and the local bad boy (Aaron Tveit). The show holds an "88% Certified Fresh" rating on Rotten Tomatoes. A second season of "Schmigadoon!" is on the way, and it's been renamed "Schmicago," to reflect a change in musical theater eras.‘Servant’AppleM. Night Shyamalan serves as the executive producer and showrunner of "Servant," a psychological horror series. A Philadelphia couple, Dorothy and Sean (played by Lauren Ambrose and Toby Kebbell), process the loss of their 13-week-old son with a lifelike doll. After hiring a nanny to look after the doll, mysterious supernatural forces invade their home.Three seasons have aired, garnering an "88% fresh" average on Rotten Tomatoes. Ahead of the third season, Apple renewed "Servant" for a fourth and final season.'Severance'Tramell Tillman, Zach Cherry, John Tuturro, Britt Lower, and Adam Scott in "Severance."Apple TV+What if your work memories could exist separate from the rest of your life? That's the question "Severance" seeks to explore. It's set at a fictional tech corporation called Lumon Industries. The company uses a mind-wiping procedure on some of its employees to sever their work memories from their non-work memories. When at work, employees remember nothing about their personal lives, and when at home, they can't remember anything about their jobs. The show follows Mark (Adam Scott), an employee who agrees to be "severed" and begins to uncover conspiracies on both sides of his life. Ben Stiller serves as director for six of the nine episodes of the critically acclaimed first season. In April, "Severance" was renewed for season two. It holds a "97% Certified Fresh" rating on Rotten Tomatoes and was nominated for 14 Primetime Emmys.‘Shining Girls’Apple TV+"Shining Girls" follows Kirby (Elisabeth Moss), an archivist who is still working through the trauma of being attacked and left for dead years before. When she discovers an unsolved murder with a lot of similarities to her own experience, Kirby enlists a reporter to help her track down the assailant. Together, they find even more cold cases and realize they're hunting a serial killer.The series, which has one season, is "83% Certified Fresh" on Rotten Tomatoes. It's unclear whether the show has been renewed for season two yet.'Slow Horses'Gary Oldman in "Slow Horses."Apple TV+"Slow Horses" is adapted from the 2010 novel of the same name by Mick Herron. It follows a group of dysfunctional MI5 officers known as "Slow Horses." They work out of an administrative building called Slough House, where nothing interesting ever happens. That is, until the team becomes entangled in a dangerous scheme.Gary Oldman, Jack Lowden, and Kristin Scott Thomas star. There's currently one season available to stream, with another set to premiere in late 2022. Additionally, Apple already greenlit seasons three and four. "Slow Horses" has a "95% Certified Fresh" rating on Rotten Tomatoes.‘Ted Lasso’.....»»

Category: topSource: businessinsiderAug 3rd, 2022

Global Markets Slump With Terrified Traders Tracking Pelosi"s Next Move

Global Markets Slump With Terrified Traders Tracking Pelosi's Next Move Forget inflation, stagflation, recession, depression, earnings, Biden locked up in the basement with covid, and everything else: today's it all about whether Nancy Pelosi will start World War 3 when she lands in Taiwan in 3 hours. US stocks were set for a second day of declines as investors hunkered down over the imminent (military) response by China to Pelosi's Taiwan planned visit to Taiwan, along with the risks from weakening economic growth amid hawkish central bank policy. Nasdaq 100 contracts were down 0.7% by 7:30a.m. in New York, while S&P 500 futures fell 0.6% having fallen as much as 1% earlier. 10Y yields are down to 2.55% after hitting 2.51% earlier, while both the dollar and gold are higher. Elsewhere around the world, Europe's Stoxx 600 fell 0.6%, with energy among the few industries bucking the trend after BP hiked its dividend and accelerated share buybacks to the fastest pace yet after profits surged. Asian stocks slid the most in three weeks, with some of the steepest falls in Hong Kong, China and Taiwan. Among notable movers in premarket trading, Pinterest shares jumped 19% after the social-media company reported second-quarter sales and user figures that beat analysts’ estimates, and activist investor Elliott Investment Management confirmed a major stake in the company. US-listed Chinese stocks were on track to fall for a fourth day, which would mark the group’s longest streak of losses since late-June, amid the rising geopolitical tensions. In premarket trading, bank stocks are lower amid rising tensions between the US and China. S&P 500 futures are also lower, falling as much as 0.9%, while the 10-year Treasury yield falls to 2.56%. Cowen Inc. shares gained as much as 7.5% after Toronto-Dominion Bank agreed to buy the US brokerage for $1.3 billion in cash. Meanwhile, KKR’s distributable earnings fell 9% during the second quarter as the alternative-asset manager saw fewer deal exits amid tough market conditions. Here are some other notable premarket movers: Activision Blizzard (ATVI US Equity) falls 0.6% though analysts are positive on the company’s plans to roll out new video game titles after it reported adjusted second-quarter revenue that beat expectations. While the $68.7 billion Microsoft takeover deal remains a focus point, the company is building out a “robust” pipeline, Jefferies said. Arista Networks (ANET US) analysts said that the cloud networking company’s results were “impressive,” especially given supply-chain constraints, with a couple of brokers nudging their targets higher. Arista’s shares rose more than 5% in US after-hours trading on Monday after the company’s revenue guidance for the third quarter beat the average analyst estimate. Avis Budget (CAR US) saw a “big beat” on low Americas fleet costs and strong performance for its international segment, Morgan Stanley says. The rental-car firm’s shares rose 5.5% in US after-hours trading on Monday, after second-quarter profit and revenue beat the average analyst estimate. Snowflake (SNOW US) falls 5.3% after being cut at BTIG to neutral from buy, citing field checks that show a potential slowdown in product revenue growth in the coming quarters. Clarus Corp. (CLAR US) should continue to see “outsized demand” from the “mega-trend” of people seeking the great outdoors, Jefferies says, after the sports gear manufacturer reported second-quarter sales that beat estimates. Clarus’s shares climbed 9% in US postmarket trading on Monday. Cryptocurrency-exposed stocks are lower in US premarket trading as Bitcoin falls for the third consecutive session as global markets and cryptocurrencies remain pressured over deepening US-China tension. Coinbase (COIN US) falls 2.3% while Marathon Digital (MARA US) drops 3.3%. Transocean (RIG US) rises 18% in US premarket trading after 2Q Ebitda beat estimates, with other positives including a new contract and a 2-year extension of a revolver. US-listed Chinese stocks are on track to fall for a fourth day, which would mark the group’s longest streak of losses since end-of-June, amid geopolitical tensions related to House Speaker Nancy Pelosi’s expected visit to Taiwan. Alibaba (BABA) falls 2.5% and Baidu (BIDU US) dips 2.7% ZoomInfo Technologies analysts were positive on the software firm’s raised guidance and improved margins, with Piper Sandler saying the firm is “in a class of its own.” The shares rose more than 11% in US after-hours trading, after closing at $37.73. Pelosi is expected to land in Taiwan on Tuesday, the highest-ranking American politician to visit the island in 25 years, a little after 10pm local time evening in defiance of Chinese threats. China, which regards Taiwan as part of its territory, has vowed an unspecified military response to a visit that risks sparking a crisis between the world’s biggest economies. “There is no way people will want to put on risk right now with this potential boiling point,” said Neil Campling, head of tech, media and telecom research at Mirabaud Securities. The potential ramifications of Pelosi’s planned visit “are huge.” The growing tensions are the latest addition to a myriad of challenges facing equity investors going into the second half of the year. Fears of a US recession as the Federal Reserve tightens policy to tame soaring inflation have weighed on risk assets. US manufacturing activity continued to cool in July, with the data highlighting softer demand for merchandise as the economy struggles for momentum. In the off chance we avoid world war, there will be a shallow recession that could start by the end of the year, according to Rupert Thompson, chief investment officer at Kingswood Holdings. Meanwhile, the market is too optimistic about the path of monetary policy and “the risk is the Fed goes further than the markets are building in in terms of hiking,” Thompson said in an interview with Bloomberg Television. Goldman Sachs strategists also said it was too soon for stock markets to fade the risks of a recession on expectations of a pivot in the Fed’s hawkish policy. On the other hand, JPMorgan strategists said the outlook for US equities is improving for the second half of the year on attractive valuations and as the peak in investor hawkishness has likely passed. “Although the activity outlook remains challenging, we believe that the risk-reward for equities is looking more attractive as we move through the second half,” JPMorgan’s Marko Kolanovic wrote in a note dated Aug. 1. “The phase of bad data being interpreted as good is gaining traction, while the call of peak Federal Reserve hawkishness, peak yields and peak inflation is playing out.” Markets are also bracing for commentary on the US interest-rate outlook from Chicago Fed President Charles Evans and St. Louis Fed President James Bullard. In Europe, tech, financial services and travel are the worst-performing sectors. Euro Stoxx 50 falls 0.8%. FTSE 100 is flat but outperforms peers. Here are some of the biggest European movers today: BP shares rise as much as 4.8% on earnings. The oil major’s quarterly results look strong with an earnings beat, dividend hike and increased buyback all positives, analysts say. OCI rises as much as 8.6%, the most since March, on its latest earnings. Analysts say the results are ahead of expectations and the fertilizer firm’s short-term outlook remains robust. Maersk shares rise as much as 3.7% after the Danish shipping giant boosted its underlying Ebit forecast for the full year. Analysts note the boosted guidance is significantly above consensus estimates. Greggs shares rise as much as 4% after the UK bakery chain reported an increase in 1H sales. The 1H results are “solid,” while the start to 2H is “robust,” according to Goodbody. Delivery Hero shares gain as much as 3.8%. The stock is upgraded to overweight from neutral at JPMorgan, which said many of the negatives that have weighed on the firm are starting to turn. Rotork gains as much as 4%, the most since June 24, after beating analyst expectations for 1H 2022. Shore Capital says the company shows “good momentum” in the report. Credit Suisse shares decline as much as 6.4% after its senior debt was downgraded by Moody’s, and its credit outlook cut by S&P, while Vontobel lowered the PT following “disappointing” 2Q earnings. Travis Perkins shares drop as much as 11%, the most since March 2020. Citi says the builders’ merchant’s results are “slightly weaker than expected,” with RBC noting shortfalls in sales and Ebita. DSM shares drop by as much as 4.9% as Citi notes weak free cash flow after company reported adjusted Ebitda for the second quarter up 5.3% with FY22 guidance unchanged. UK homebuilders fall after house prices in the country posted their smallest increase in at least a year, indicating that the property market is starting to cool, with Crest Nichols dropping as much as 5.2%. Wind-turbine stocks fall in Europe after Spain’s Siemens Gamesa cut sales and margin guidance, with Siemens Energy dropping as much as 6.1%, with Vestas Wind Systems down as much as 4.7%. Earlier in the session, Asian stocks fell as traders braced for a potential escalation of US-China tensions given a possible visit by US House Speaker Nancy Pelosi to Taiwan. The MSCI Asia Pacific Index dropped as much as 1.4%, poised for its worst day in five weeks. All sectors, barring real estate, were lower with chipmaker TSMC and China’s tech stocks among the biggest drags on the regional measure. Pelosi is expected to arrive in Taipei late on Tuesday. Beijing regards Taiwan as part of its territory and has promised “grave consequences” for her trip. Benchmarks in Hong Kong, China and Taiwan were among the laggards in Asia, slipping at least 1.4% each. Japan’s Topix declined as the yen received a boost from safe-haven demand.  还没打就见血了。4400个股票受伤。 Chinese stocks collapsed in the shadow of a looming conflict. 4400 of 4800 stocks hurt. pic.twitter.com/zo66di9W7I — Hao HONG 洪灝, CFA (@HAOHONG_CFA) August 2, 2022 “I do expect a negative feedback loop into China-related equities especially those related to the semiconductor and technology sectors as Pelosi’s potential visit to Taiwan is likely to harden the current frosty US-China tech war,” said Kelvin Wong, analyst at CMC Markets (Singapore). Pelosi’s controversial trip is souring a nascent revival in risk appetite in the region that saw the MSCI Asia gauge rise in July to cap its best month this year. China’s economic slowdown continues to weigh on sentiment, as authorities said this year’s economic growth target of “around 5.5%” should serve as a guidance rather than a hard target.  Japanese equities fell as the yen soared to a two month high over concerns of US-China tensions escalating with US House Speaker Nancy Pelosi expected to visit Taiwan on Tuesday.  The Topix fell 1.8% to 1,925.49 as of the market close, while the Nikkei declined 1.4% to 27,594.73. Toyota Motor Corp. contributed the most to the Topix Index decline, decreasing 2.6%. Out of 2,170 shares in the index, 227 rose and 1,903 fell, while 40 were unchanged. Pelosi would become the highest-ranking American politician to visit Taiwan in 25 years. China views the island as its territory and has warned of consequences if the trip takes place. “The relationship between the US and China was just about to enter into a period of review, with a move from the US to reduce China tariffs,” said Ikuo Mitsui a fund manager at Aizawa Securities. That could change now as a result of Pelosi’s visit, he added Meanwhile, Australia’s S&P/ASX 200 index erased an earlier loss of as much as 0.7% to close 0.1% higher after the Reserve Bank’s widely-expected half-percentage point lift of the cash rate to 1.85%. The index wiped out a loss of as much as 0.7% in early trade. The RBA’s statement was “not as hawkish as anticipated and the lower growth forecast suggests the RBA is aware of both the domestic and international drags on the economy,” said Kerry Craig, global market strategist at JPMorgan.  “We expect the RBA will continue to push interest rates back to a neutral level this year given the successive upgrades to the inflation outlook, but 2023 looks to be a much less eventful year for the RBA,” Craig said.  Banks and consumer discretionary advanced to boost the index, while miners and energy shares declined.   In New Zealand, the S&P/NZX 50 index rose less than 0.1% to 11,532.46. Indian stock indexes are on course to claw back this year’s losses on steady buying by foreigners. The S&P BSE Sensex closed little changed at 58,136.36 in Mumbai, after falling as much as 0.6% earlier in the day. The measure is now just 0.2% away from turning positive for the year. The NSE Nifty Index too is a few ticks away from moving into the green. Nine of the BSE Ltd.’s 19 sector sub-indexes advanced on Tuesday, led by power and utilities companies.  Foreigners bought local shares worth $836.2 million in July, after pulling out a record $33 billion from the Indian equity market since October. July was the first month of net equity purchases by foreign institutional investors, after nine months of outflows. Still, “choppiness would remain high due to the upcoming RBI policy meet outcome and prevailing earnings season,” Ajit Mishra, vice-president for research at Religare Broking Ltd. wrote in a note. “Participants should continue with the buy-on-dips approach.” The Reserve Bank of India is widely expected to raise interest rates for a third straight time on Friday. Of the 33 Nifty companies that have reported results so far, 18 have beaten the consensus view while 15 have trailed. Of the 30 shares in the Sensex index, 16 rose, while 14 fell. IndusInd Bank and Asian Paints were among the key gainers on the Sensex, while Tech Mahindra Ltd. and mortgage lender Housing Development Finance Corp were prominent decliners.  In FX, the Bloomberg dollar spot index rises 0.1%. JPY and CAD are the strongest performers in G-10 FX, NOK and AUD underperforms, after Australia’s central bank hiked rates by 50 basis-points for a third straight month and signaled policy flexibility. USD/JPY dropped as much as 0.9% to 130.41, the lowest since June 3, in the longest streak of daily losses since April 2021. Leveraged accounts are adding to short positions on the pair ahead of Pelosi’s visit, Asia-based FX traders said. In rates, treasuries extended Monday’s rally in early Asia session as 10-year yields dropped as low as 2.514% amid escalating US-China tension over Taiwan. Treasury yields were richer by up to 5bp across long-end of the curve, where 20-year sector continues to outperform ahead of Wednesday’s quarterly refunding announcement, expected to make extra cutbacks to the tenor. US 10-year yields off lows of the day around 2.55%, lagging bunds by 4bp and gilts by 4.5bp. US stock futures slumped given risk adverse backdrop, adding support into Treasuries while bunds outperform as traders scale back ECB rate hike expectations. The yield on the two-year German note, among the most sensitive to rate hikes, fell as low as 0.17%, its lowest since May 16. Gilts also gained across the curve. Bund curve bull-steepens with 2s10s widening ~2 bps. Gilt and Treasury curves mostly bull-flatten. Australian bonds soared after RBA delivered a third- straight 50bp rate hike as expected, but gave itself wriggle room to slow the pace of tightening in the coming months. In commodities, WTI trades within Monday’s range, falling 0.6% to trade around $93, while Brent falls below $100. Spot gold is little changed at $1,779/oz. Base metals are mixed; LME nickel falls 2% while LME zinc gains 0.6%. Bitcoin remains under modest pressure and has incrementally lost the USD 23k mark, but remains comfortably above last-week's USD 20.6k trough. Looking to the day ahead now and there is a relatively short list of economic indicators to watch, including June JOLTS report and total vehicle sales (July) for the US, UK’s July Nationwide house price index and July PMI for Canada. Given the apparent uncertainty about the direction of the Fed in markets, many will be awaiting Fed’s Bullard, Mester and Evans, who will speak throughout the day. And in corporate earnings, it will be a busy day featuring results from BP, Caterpillar, Ferrari, Marriott, KKR, Uber, S&P Global, Occidental Petroleum, Electronic Arts, Gilead Sciences, Advanced Micro Devices, Starbucks, Airbnb, PayPal, Marathon Petroleum. Market Snapshot S&P 500 futures down 0.6% to 4,096.50 STOXX Europe 600 down 0.5% to 435.13 MXAP down 1.3% to 159.73 MXAPJ down 1.3% to 516.82 Nikkei down 1.4% to 27,594.73 Topix down 1.8% to 1,925.49 Hang Seng Index down 2.4% to 19,689.21 Shanghai Composite down 2.3% to 3,186.27 Sensex little changed at 58,120.97 Australia S&P/ASX 200 little changed at 6,998.05 Kospi down 0.5% to 2,439.62 German 10Y yield little changed at 0.74% Euro down 0.3% to $1.0231 Brent Futures down 0.6% to $99.44/bbl Gold spot down 0.1% to $1,770.93 U.S. Dollar Index up 0.15% to 105.61 Top Overnight News from Bloomberg Oil Steadies Before OPEC+ as Traders Weigh Up Market Tightness China Slaps Export Ban on 100 Taiwan Brands Before Pelosi Visit Pozsar Says L-Shaped Recession Is Needed to Conquer Inflation Pelosi’s Taiwan Trip Raises Angst in Global Financial Markets Taiwan Risk Joins Long List of Reasons to Shun China Stocks Biden Says Strike in Kabul Killed a Planner of 9/11 Attacks Biden Team Tries to Blunt China Rage as Pelosi Heads for Taiwan The Best and Worst Airlines for Flight Cancellations GOP Plans to Deploy Obscure Rule as Weapon Against Spending Bill US to Stop TSMC, Intel From Adding Advanced Chip Fabs in China US Anti-Terrorism Operation in Afghanistan Kills Al-Qaeda Leader They Quit Goldman’s Star Trading Team, Then It Raised Alarms Sinema’s Silence on Manchin’s Deal Keeps Everyone Guessing Manchin Side-Deal Seeks to Advance Mountain Valley Pipeline A more detailed look at global markets courtesy of Newsquawk APAC stocks followed suit to the weak performance across global counterparts as tensions simmered amid Pelosi's potential visit to Taiwan. ASX 200 was initially pressured ahead of the RBA rate decision where the central bank hiked by 50bp, as expected, although most of the losses in the index were pared amid a lack of any hawkish surprises in the statement and after the central bank noted it was not on a pre-set path. Nikkei 225 declined amid a slew of earnings and continued unwinding of the JPY depreciation. Hang Seng and Shanghai Comp underperformed due to the ongoing US-China tensions after reports that House Speaker Pelosi will arrive in Taiwan late on Tuesday despite the military threats by China, while losses in Hong Kong were exacerbated by weakness in tech and it was also reported that Chinese leaders said the GDP goal is guidance and not a hard target which doesn't provide much confidence in China's economy. Top Asian News Tourism Jump to Power Thai GDP Growth to Five-Year High in 2023 China in Longest Streak of Liquidity Withdrawals Since February Singapore Says Can Tame Wild Power Market Without State Control India’s Zomato Appoints Four CEOs, to Change Name to Eternal Taiwan Tensions Raise Risks in One of Busiest Shipping Lanes Japan Trading Giants Book $1.7 Billion Russian LNG Impairment     Japan Proposes Record Minimum Wage Hike as Inflation Hits European bourses are pressured as the general tone remains tentative ahead of Pelosi's visit to Taiwan, Euro Stoxx 50 -0.9%; note, FTSE 100 -0.1% notably outperforms following earnings from BP +3.0%. As such, the Energy sector bucks the trend which has the majority in the red and a defensive bias in-play. Stateside, futures are similarly downbeat and have been drifting lower amid the incremental updates to Pelosi and her possible Taiwan arrival time of circa. 14:30BST/09:30ET; ES -1.0%. Apple (AAPL) files final pricing term sheet for four-part notes offering of up to USD 5.5bln, according to a filing. Top European News Ukraine Sees Slow Return of Grain Exports as World Watches Ruble Boosts Raiffeisen’s Russian Unit Despite Credit Halt DSM 2Q Adj. Ebitda Up; Jefferies Sees ‘Muted’ Reaction Credit Suisse Hit by More Rating Downgrades After CEO Reboot Man Group Sees Assets Decline for First Time in Two Years Exodus of Young Germans From Family Nest Is Getting Ever Bigger FX Yen extends winning streak through yet more key levels vs Buck and irrespective of general Greenback recovery on heightened US-China tensions over Taiwan USD/JPY breaches support around 131.35 and probes 130.50 before stalling, but remains sub-131.00 even though the DXY hovers above 105.500 within a 105.030-710 range. Aussie undermined by risk aversion and no hawkish shift by RBA after latest 50bp hike; AUD/USD nearer 0.6900 having climbed to within a few pips of 0.7050 on Monday. Kiwi holds up better with AUD/NZD tailwind awaiting NZ jobs data, NZD/USD hovering just under 0.6300 and cross closer to 1.1000 than 1.1100. Euro and Pound wane after falling fractionally short of round number levels vs Dollar, EUR/USD back under 1.0250 vs 1.0294 at best, Cable pivoting 1.2200 from 1.2293 yesterday. Loonie and Franc rangy after return from Canadian and Swiss market holidays, USD/CAD straddling 1.2850 and USD/CHF rotating around 0.9500. Yuan off lows after slightly firmer PBoC midpoint fix, but awaiting repercussions of Pelosi trip given Chinese warnings about strong reprisals, USD/CNH circa 6.7700 and USD/CNY just below 6.7600 vs 6.7950+ and 6.7800+ respectively. South Africa's Eskom says due to a shortage of generation capacity, Stage Two loadshedding could be implemented at short notice between 16:00-00:00 over the next three days. Fixed Income Taiwan-related risk aversion keeps bonds afloat ahead of relatively light pm agenda before a trio of Fed speakers. Bunds hold above 159.00 within 159.70-158.57 range, Gilts around 119.50 between 119.70-20 parameters and T-note nearer 122-02 peak than 121-17+ trough. UK 2032 supply comfortably twice oversubscribed irrespective of little concession. Commodities WTI Sept and Brent Oct futures trade with both contracts under the USD 100/bbl mark as the participants juggle a myriad of major factors, incl. the JTC commencing shortly. Spot gold is stable and just below the 50-DMA at USD 1793/oz while base metals succumb to the broader tone. A source with knowledge of last month's meeting between President Biden and Saudi King Salman said the Saudis will push OPEC+ to increase oil production at their meeting on Wednesday and that the Saudi King made the assurance to President Biden during their face-to-face meeting July 16th, according to Fox Business's Lawrence. US Senator Manchin "secured a commitment" from President Biden, Senate Majority Leader Schumer and House Speaker Pelosi for completion of the Mountain Valley Pipeline, according to 13NEWS. US Event Calendar July Wards Total Vehicle Sales, est. 13.4m, prior 13m 10:00: June JOLTs Job Openings, est. 11m, prior 11.3m 10:00: Fed’s Evans Hosts Media Breakfast 11:00: NY Fed Releases 2Q Household Debt and Credit Report 13:00: Fed’s Mester Takes Part in Washington Post Live Event 18:45: Fed’s Bullard Speaks to the Money Marketeers DB's Jim Reid concludes the overnight wrap In thin markets, US House Speaker Nancy Pelosi's visit to Taiwan today for meetings tomorrow (as part of her tour of Asia) could be the main event. She's scheduled to land tonight local time which will be mid-morning US time. She'll be the highest ranking US politician to visit in 25 years. Expect some reaction from the Chinese and markets to be nervous. Meanwhile to dial back rising tensions, the White House has urged China to refrain from an aggressive response as speaker Pelosi’s visit does not change the US position toward the island. As the headline confirming her visit was going ahead broke, 10 year US Treasuries immediately fell a handful of basis point from 2.69% (opened at 2.665%) and continued falling to around 2.58% as Europe retired for the day, roughly where it closed (-6.8bps). Breakevens led most of the move. 2 year notes actually held in which inverted the curve a further -6.12bps and to the lowest this cycle at -30.84bps. Remember that August is the best month of the year for fixed income (see my CoTD last week here for more on this) so the month has started off in line with the textbook. This morning 10yr USTs yields have dipped another -3bps to 2.55%, some 14bps lower than when Pelosi stopover was first confirmed 18 hours ago. 2yr yields have slightly out-performed with the curve just back below -30bps again. Lower yields initially helped to lift equities yesterday, with the Nasdaq being up more than a percent at one point before falling with the rest of the market and closing -0.18%. The S&P 500 was -0.28% and dragged lower by energy (-2.17%). The latter came as crude prices moved substantially lower, with WTI losing -4.91% and Brent (-3.97%) dipping below $100 per barrel as well. Growth concerns, partly due to the weekend and yesterday’s data from China, and partly due to the US risk off yesterday, were mainly to blame. These worries filtered through other commodities as well, including industrial metals and agriculture. For the latter, Ukraine’s first grain shipment since the war began was a contributing factor. European gas was a standout, notching a +5.2% gain as the relentless march continues. In an overall risk-off market, staples (+1.21%) were the only sector meaningfully advancing on the day, followed by discretionary (+0.51%) stocks. Meanwhile, real estate (-0.90%), financials (-0.89%) and materials (-0.82%) dragged the index lower. Although yesterday’s earnings stack was light, today’s line up includes BP, Starbucks, Airbnb and PayPal. Asian equity markets opened sharply lower this morning on the fresh geopolitical tensions between the US and China over Taiwan. Across the region, the Hang Seng (-2.96%) is leading losses after yesterday’s data showed that Hong Kong slipped into a technical recession as Q2 GDP shrank by -1.4%, contracting for the second consecutive quarter as global headwinds mount. Mainland China stocks are also sliding with the Shanghai Composite (-2.90%) and CSI (-2.33%) trading deep in the red whilst the Nikkei (-1.59%) is also in negative territory. Elsewhere, the Kospi (-0.77%) is also weak in early trade. Outside of Asia, DMs stock futures point to a lower restart with contracts on the S&P 500 (-0.38%), NASDAQ 100 (-0.40%) and DAX (-0.50%) all turning lower. As we go to print, the RBA board has raised rates by another 50 basis points to 1.85%. Their economic forecasts seem to have been lowered and they have now said monetary policy is "not on a pre-set path" which some are already interpreting as possibly meaning 25bps instead of 50bps at the next meeting. Aussie 10yr yields dropped 7-8bps on the announcement and 10bps on the day. Back to yesterday, and the important US ISM index, on balance, painted a slightly more comforting picture than it could have been – although the index slowed to the lowest since June 2020. The headline came in above the median estimate on Bloomberg (52.8 vs 52.0). We did see a second month in a row of below-50 score for new orders, but a fall in prices paid from 78.5 to 60.0, the lowest since August 2020, offered some respite to fears about price pressures. Similarly, a rise in the employment gauge from 47.3 to 49.9, beating estimates, was also a positive. The manufacturing PMI was revised down a tenth from the preliminary reading which didn't move the needle. JOLTS today will be on my radar given it's been the best measure of US labour market tightness over the past year or so. Also Fed hawks Mester (lunchtime US) and Bullard (after the closing bell) will be speaking today. Turning to Europe, price action across sovereign bond markets was driven by dovish repricing of ECB’s monetary policy, in contrast to the US where the front end held up. A cloudier growth outlook from yesterday’s European data releases helped drive yields lower – retail sales in Germany unexpectedly contracted in June (-1.6% vs estimates of +0.3%) and Italy’s manufacturing PMI slipped below 50 (48.5 vs 49.0 expected). So Bund yields fell -3.8bps, similar to OATs (-3.1bps). The decline was more pronounced in peripheral yields and spreads, with BTPs (-12.9bps) in particular dropping below 3% for the first time since May of this year, perhaps on further follow through from last week's story that the far right party leading the polls aren't planning to break EU budget rules. Spreads have recovered the lost ground from Draghi's resignation announcement now. Weaker economic data overpowered the effect of lower yields and sent European stocks faded into the close after being higher most of the day with the STOXX 600 eventually declining -0.19%. The Italian market outperformed (+0.11%) for the reasons discussed above. Early this morning, data showed that South Korea’s July CPI inflation rate rose to +6.3% y/y, hitting its highest level since November 1998 (v/s +6.0% in June), in line with the market consensus. The strong inflation data comes as the Bank of Korea (BOK) mulls further interest rate hikes at its next policy meeting on August 25. To the day ahead now and there is a relatively short list of economic indicators to watch, including June JOLTS report and total vehicle sales (July) for the US, UK’s July Nationwide house price index and July PMI for Canada. Given the apparent uncertainty about the direction of the Fed in markets, many will be awaiting Fed’s Bullard, Mester and Evans, who will speak throughout the day. And in corporate earnings, it will be a busy day featuring results from BP, Caterpillar, Ferrari, Marriott, KKR, Uber, S&P Global, Occidental Petroleum, Electronic Arts, Gilead Sciences, Advanced Micro Devices, Starbucks, Airbnb, PayPal, Marathon Petroleum. Tyler Durden Tue, 08/02/2022 - 08:05.....»»

Category: personnelSource: nytAug 2nd, 2022

Pathfinder Bancorp, Inc. Announces Second Quarter 2022 Net Income of $3.3 Million

OSWEGO, N.Y., Aug. 01, 2022 (GLOBE NEWSWIRE) -- Pathfinder Bancorp, Inc. ("Company") (NASDAQ:PBHC), the holding company for Pathfinder Bank ("Bank"), announced an increase in second quarter 2022 net income of $263,000, or 8.74%, as compared to the second quarter of 2021. Net income for the quarter ended June 30, 2022 was $3.3 million, or $0.54 per basic and diluted common share, compared to $3.0 million, or $0.50 per basic and diluted common share, for the second quarter of 2021. Second quarter 2022 total revenue (net interest income and total noninterest income) of $11.3 million decreased $376,000, or 3.2%, compared to the second quarter of 2021. Second Quarter 2022 and Six Month Performance Highlights Total interest-earning assets at June 30, 2022, of $1.28 billion increased by $89.6 million, or 7.53%, from $1.19 billion at June 30, 2021 and $67.2 million, or 5.6%, from $1.21 billion at December 31, 2021. Total loans were $866.3 million at the end of the second quarter of 2022 compared to $835.0 million one year prior and $832.5 million at December 31, 2021. Excluding PPP-related loans, total loans grew by $80.1 million, or 10.3%, from June 30, 2021, and $48.3 million, or 5.94%, from year end 2021. Total deposits at June 30, 2022 were $1.14 billion, an increase of $106.2 million, or 10.29%, compared to $1.03 billion one year prior and $82.5 million, or 7.8%, from $1.06 billion at December 31, 2021. A more beneficial deposit mix contributed to a 4 basis point reduction in deposit funding costs to 0.50% for the second quarter 2022, as compared to 0.54% in the prior year's second quarter. Total funding costs decreased 8 basis points to 0.69% from the prior year's second quarter of 0.77%. Total second quarter 2022 net interest income of $10.0 million decreased by $238,000, or 2.3%, from the prior year period, and net interest margin contracted to 3.14%, down 28 basis points from the prior year period. Tangible book value per common share of $17.18 was up 3.6% from $16.59 a year ago. "The second quarter of 2022 was another strong quarter for our Company, with continued loan growth and outstanding credit quality," said James A. Dowd, President and Chief Executive Officer. "Our success in the first half of the year can be attributed to our very deliberate balance sheet positioning and our continued focus on the management of operating expenses. In combination, these efforts have led us to an exceptional first half of the year. We believe that we remain well-positioned for success in the rising interest rate environment while keeping a close watch on the potential impacts of inflation and economic uncertainty." "In the second quarter of 2022, we grew total revenue to $11.3 million, up 3.2% from the year-ago period. As a result, we continued to further improve overall profitability, which was evident in our profitability metrics of return on average assets of 0.99% and our annualized return on average equity of 12.08%." "For the second sequential quarter, our Board of Directors approved a quarterly cash dividend of $0.09 per share, a $0.02, or 28.6% increase compared to the dividend declared in June 2021, which reflects our ongoing commitment to creating value for our investors by returning an appropriate level of capital to our shareholders." "Our team has been focused on enhancing relationships with both new and existing customers within our Central New York footprint and their contributions continue to drive significant growth. We have also continued to improve our funding mix and are well-positioned to benefit in the rising interest rate environment." "Primarily due to the impact of inflationary pressures, we have continued to see an increase in noninterest expenses from the prior year period.  However, we remain actively focused on effective expense management, while continuing to make prudent investments to increase our long-term growth. We continue to make investments that will better position us to serve our customers now and in the future.  As an example, we look forward to the opening of our newest strategically located branch in Syracuse this fall. This branch will offer a broad range of community banking services to areas that we believe are currently underserved and allow us to explore additional opportunities to expand our successful presence within our footprint." "I am excited by the growth performance and opportunities for both the Company and the Central New York communities we serve. Our highly skilled team is committed to deliver on the strong loan and deposit pipeline opportunities we see and continue to grow our Company while providing long-term shareholder value." Income Statement for the Quarter and Six Months Ended June 30, 2022 Second quarter 2022 net interest income was $10.0 million, a decrease of $238,000 or 2.3%, compared to $10.2 million for the same quarter in 2021. The decrease in net interest income between comparable quarters was primarily due to a 34 basis point reduction in yields on interest-earning assets, which was partially offset by the Company's improved funding mix, which reduced total interest expense for the second quarter of 2022 by $122,000, or 6.6%, to $1.7 million, from $ 1.9 million for the prior year quarter. Interest and dividend income in the second quarter of 2022 was $11.7 million, compared to $12.1 million in the second quarter of 2021. The net interest margin for the second quarter of 2022 was 3.14%, reflecting a 28 basis point decrease compared to 3.42% for the second quarter of 2021. This primarily reflects a 41 basis point decline in loan yields which was partially offset by the 8 basis point decline in the average cost for interest-bearing liabilities. The 41 basis point decline in loan yields during the three months ended June 30, 2022, as compared to the same three month period in 2021, was due to three factors, most notably a $468,000, or 22 basis point, reduction in deferred PPP fee income recognized in the quarter ended June 30, 2022 as compared to the same quarterly period in 2021.  Secondarily, during the fourth quarter of 2021, the Bank acquired via purchase approximately $62.4 million in consumer installment and commercial lines of credit loans whose yields range from 3.25-3.38%.  These loans were intended to supplement passive investment income at yields that were more favorable to the Bank than those readily available in the securities market at that time of their acquisition. These transactions had the effect of reducing the overall yield on the loan portfolio by approximately 7 basis points, on a quarter over quarter basis.  Finally, the remainder of the loan yield reduction during the three months ended June 30, 2022, as compared to the same three month period in 2021, was largely due to reductions in average loan rates resulting from contractual repricing and customer refinancing activities that took place in the low interest environment that existed throughout 2021 and into early 2022. Net interest income for the first six months of 2022 increased $669,000, or 3.6%, to $19.4 million compared to $18.8 million for the first half of 2021. Interest and dividend income for the six months ended June 30, 2022 was $22.7 million, a decrease of $320,000, or 1.4%, compared to $23.0 million for the same period in 2021. The decrease was primarily due to a decline in loan yields of 23 basis points, despite average loan growth of $1.4 million, or 0.2%, compared to the prior year period, and a $34.4 million increase in average taxable investment securities. Interest expense of $3.2 million for the six-month period decreased by $1.0 million, or 23.4%, from the prior year period, primarily because of a 22 basis point decrease in the interest rate paid on interest bearing liabilities.  The 23 basis point decline in loan yields during the six months ended June 30, 2022, as compared to the same six month period in 2021, was due to a variety of factors, most notably a $600,000, or 14 basis point, reduction in deferred PPP fee income recognized in the first six months of 2022 as compared to the same six month period in the previous year. The majority of the remainder of the loan yield reduction during the six months ended June 30, 2022, as compared to the same six month period in 2021, was largely due to reductions in average loan rates resulting from contractual repricing and customer refinancing activities that took place in the low interest environment that existed throughout 2021 and into early 2022. Management relies on both internally-prepared and externally-supplied modeling to forecast and manage both net interest margin and associated interest rate risks. As a result of this modeling, the Bank's management team believes that the Company will benefit modestly in terms of expanding net interest margins within the current interest rate environment during the second half of 2022. Relying on this modeling, management forecasts that net interest margin will be in the 3.15-3.20% range in the second half of 2022, including the $172,000 in unearned deferred PPP fee income remaining to be recognized at June 30, 2022. All forecasts of this nature are subject to a wide range of assumptions that may or may not be realized. The most critical of these assumptions are related to the repricing characteristics of the Bank's interest-bearing liabilities and projected customer behavior related to deposits.     Components of Net Interest Income The following table details the components of net interest income for the three and six months ended June 30, 2022 and 2021: Unaudited   For the three months ended   For the six months ended (In thousands, except per share data)   June 30, 2022   June 30, 2021   Change   June 30, 2022   June 30, 2021   Change Interest and dividend income:                                     Loans, including fees   $ 8,974   $ 9,784   $ (810 )   -8.3 %   $ 17,666   $ 18,631   $ (965 )   -5.2 % Debt securities:                                        Taxable     2,523     2,152     371     17.2 %     4,643     4,128     515     12.5 % Tax-exempt     143     42     101     240.5 %     261     71     190     267.6 % Dividends     51     87     (36 )   -41.4 %     99     174     (75 )   -43.1 % Federal funds sold and interest earning deposits     15     1     14     1400.0 %     19     4     15     375.0 % Total interest and dividend income     11,706     12,066     (360 )   -3.0 %     22,688     23,008     (320 )   -1.4 % Interest expense:                                         Interest on deposits     1,134     1,144     (10 )   -0.9 %     2,099     2,671     (572 )   -21.4 % Interest on short-term borrowings     24     3     21     700.0 %     29     6     23     383.3 % Interest on long-term borrowings     141     296     (155 )   -52.4 %     274     591     (317 )   -53.6 % Interest on subordinated debt     430     408     22     5.4 %     842     965     (123 )   -12.7 % Total interest expense     1,729     1,851     (122 )   -6.6 %     3,244     4,233     (989 )   -23.4 % Net interest income     9,977     10,215     (238 )   -2.3 %     19,444     18,775     669     3.6 % Provision for loan losses     59     929     (870 )   -93.6 %     161     1,957     (1,796 )   -91.8 % Net interest income after provision for loan losses   $ 9,918   $ 9,286   $ 632     6.8 %   $ 19,283   $ 16,818   $ 2,465     14.7 % Paycheck Protection Program Discussion From April 2020 to May 2021, the Company participated in all phases of the Paycheck Protection Program ("PPP") as administered by the U.S. Small Business Administration (the "SBA"). PPP loans are substantially guaranteed as to timely repayment by the SBA and have unique forgiveness features whereby loan principal amounts may be discharged, for the benefit of the borrowers, by direct payments from the SBA to the lending institution holding the indebtedness. The Company has received both interest (calculated at a stated rate of 1%) and various levels of fee income related to the origination of PPP loans. Information related to the Company's PPP loans are included in the following tables: Unaudited   For the three months ended   For the six months ended (In thousands, except number of loans)   June 30, 2022     June 30, 2021     June 30, 2022   June 30, 2021 Number of PPP loans originated in the period     -       57       -       478   Funded balance of PPP loans originated in the period   $ -     $ 1,882     $ -     $ 36,369   Number of PPP loans forgiven in the period   96       143       189       349   Balance of PPP loans forgiven in the period   $ 2,321     $ 23,985     $ 8,417     $ 42,566   Deferred PPP fee income recognized in the period   $ 267     $ 735     $ 547     $ 1,147   (In thousands, except number of loans)   June 30, 2022     June 30, 2021   Unearned PPP deferred fee income at end of period   $ 172     $ 1,720   (In thousands, except number of loans)   Number     Balance     Total PPP loans originated since inception     1,177     $ 111,721     Total PPP loans forgiven since inception     1,110     $ 106,844     Total PPP loans remaining at June 30, 2022     67     $ 4,877     Provision for Loan Losses The Company reported a provision for loan losses of $59,000 for the second quarter of 2022, reflective of improving asset quality metrics, partially offset by the effects on required reserves related to year-over-year loan growth. This compares to a provision for loan losses of $929,000 for the second quarter of 2021. The credit sensitive portfolios continue to be carefully monitored, and the Bank will consistently apply its loan classification and reserve building methodologies to the analysis of these portfolios. The provision for loan losses for the first six months of 2022 was $161,000, compared to $2.0 million for the same period in 2021. Please refer to the asset quality section below for a further discussion of asset quality as it relates to the allowance for loan loss. Noninterest Income Second quarter 2022 noninterest income was $1.3 million, a decrease of $138,000, or 9.6%, compared to $1.4 million for the same three-month period in 2021. The decrease in noninterest income, as compared to the same quarter of the previous year was due to (1) a loss on marketable equity securities in the quarter compared to the net gain on marketable equity securities recorded in the second quarter of 2021, and (2) a decrease in service charges for overdraft, ATM fees and insufficient funds on deposit accounts compared to the second quarter of 2021.  Noninterest income was $2.9 million for the six months ended June 30, 2022 and $3.3 million for the six months ended June 30, 2021. For the six months ended June 30, 2022 noninterest income was $2.9 million, a decrease of $380,000, or 11.6%, compared to $3.3 million for the same six-month period in 2021.  The decrease in noninterest income, as compared to the six-month period of the previous year was primarily due to the change in gains from the sale of marketable equity securities and gains from the sale of land. The following table details the components of noninterest income for the three and six months ended June 30, 2022 and 2021: Unaudited   For the three months ended   For the six months ended (Dollars in thousands)   June 30, 2022   June 30, 2021   Change     June 30, 2022   June 30, 2021   Change Service charges on deposit accounts   $ 283   $ 357   $ (74 )     -20.7 %   $ 542   $ 689   $ (147 )   -21.3 % Earnings and gain on bank owned life insurance     123     129     (6 )     -4.7 %     285     254     31     12.2 % Loan servicing fees     69     11     58       527.3 %     186     101     85     84.2 % Debit card interchange fees     231     241     (10 )     -4.1 %     459     462     (3 )   -0.6 % Insurance agency revenue     292     234     58       24.8 %     591     514     77     15.0 % Other charges, commissions and fees     279     323     (44 )     -13.6 %     692     565     127     22.5 % Noninterest income before (losses) gains     1,277     1,295     (18 )     -1.4 %     2,755     2,585     170     6.6 % Net gains on sales of securities, fixed assets, loans and foreclosed real estate     48     90     (42 )     -46.7 %     105     411     (306 )   -74.5 % (Losses) gains on marketable equity securities     (29 )   49     (78 )     -159.2 %     39     283     (244 )   86.2 % Total noninterest income   $ 1,296   $ 1,434   $ (138 )     -9.6 %   $ 2,899   $ 3,279   $ (380 )   -11.6 % Noninterest Expense Total noninterest expense for the second quarter of 2022 was $7.1 million, an increase of $301,000, or 4.4%, compared to $6.8 million for the same three-month period in 2021. The increase was primarily a result of higher salaries and employee benefits expense of $284,000, or 8.1%. Partially offsetting the increase in salaries and employee benefits expense was a $137,000, or 20.9%, reduction in data processing expenses, primarily the result of a reduction in ATM processing fees related to third-party vendor refunds obtained through contract renegotiation activities. Total noninterest expense for the six-month period of 2022 was $14.4 million, an increase of $917,000, or 6.8%, compared with $13.5 million for the prior year period. The increase was primarily a result of higher salaries and employee benefits expense of $992,000, or 14.5%, and was primarily comprised of a $443,000, or 8.8% increase in salaries, a $361,000 reduction in salaries treated as deferred expenses, a $139,000 increase in employee benefits and a $49,000 net increase in all other salaries and employee benefit expenses. The $443,000 increase in salaries was primarily due to increases in individual salaries, enacted early in 2022 and continuing through the year, as well as modest additions to staff headcount.  The Company increased its salary structure where deemed appropriate in order to effectively respond to inflationary and competitive pressures within our marketplace to recruit and retain talent.  The $361,000 reduction in deferred salaries was primarily due to the cessation of of PPP loan originations in 2022 as compared to $36.4 million PPP loan originations in the first half of 2021. The $139,000 increase in employee benefit expenses is consistent with increased staffing levels and salaries for 2022. The following table details the components of noninterest expense for the three and six months ended June 30, 2022 and 2021: Unaudited   For the three months ended     For the six months ended   (Dollars in thousands)   June 30, 2022     June 30, 2021     Change     June 30, 2022     June 30, 2021     Change   Salaries and employee benefits   $ 3,785     $ 3,501     $ 284       8.1 %   $ 7,834     $ 6,842     $ 992       14.5 % Building and occupancy     830       870       (40 )     -4.6 %     1,656       1,663       (7 )     -0.4 % Data processing     517       654       (137 )     -20.9 %     1,067       1,330       (263 )     -19.8 % Professional and other services     452       451       1       0.2 %     845       868       (23 )     -2.6 % Advertising     235       259       (24 )     -9.3 %     422       505       (83 )     -16.4 % FDIC assessments     222       232       (10 )     -4.3 %     444       430       14       3.3 % Audits and exams     142       177       (35 )     -19.8 %     283       379       (96 )  .....»»

Category: earningsSource: benzingaAug 1st, 2022

Intel Misses Q2 Earnings Estimate, Cuts View: ETFs in Focus

Intel missed estimates for both earnings and revenues and slashed the outlook for the fiscal year, citing cooling demand for its chips used in personal computers. Intel INTC reported Q2 results after market close yesterday. The world’s largest chipmaker missed estimates for both earnings and revenues and slashed the outlook for the fiscal year, citing cooling demand for its chips used in personal computers.As such, shares of INTC plunged more than 10% in after-market hours. Given this, ETFs like Invesco PHLX Semiconductor ETF SOXQ, First Trust Nasdaq Semiconductor ETF FTXL, First Trust NASDAQ Technology Dividend Index Fund TDIV, iShares Semiconductor ETF SOXX and iShares Edge MSCI USA Value Factor ETF VLUE, having the highest allocation to the world’s biggest semiconductor maker, will be in focus.Q2 Earnings in FocusEarnings of 29 cents per share came much below the Zacks Consensus Estimate of 69 cents and four times lower than the year-ago earnings of $1.28. This marks the first miss in more than eight years.Revenues declined 17% year over year to $15.3 billion and came in below the estimated $17.9 billion. This represents the seventh straight quarter of decline and the biggest in more than a decade. Both client computing, and data-center and AI revenues declined 25% and 16%, respectively. However, network and edge, accelerated computing systems and graphics, and Mobileye revenues were up 11%, 5% and 41%, respectively (see: all the Technology ETFs here).Intel has been grappling with a chip shortage. It continues to face challenges linked to persistent global supply-chain problems and worries of demand weakness in its largest end market PCs, in the upcoming quarters.Intel slashed its revenue guidance to $65-$68 billion from $76 billion for the full fiscal year, and earnings per share guidance to $2.30 from $3.60. For the third quarter, the company expects revenues of $15-$16 billion and earnings per share of 35 cents. Both revenue and earnings per share guidance are well below the current Zacks Consensus Estimate of $19.89 billion and $1.00 per share, respectively.ETFs to TapInvesco PHLX Semiconductor ETF (SOXQ)Invesco PHLX Semiconductor ETF tracks the PHLX Semiconductor Sector Index, holding 30 stocks in its basket. Intel occupies the fifth position with a 7.5% share in the basket.Invesco PHLX Semiconductor ETF has accumulated $60 million in its asset base. It charges 19 bps in annual fees and trades in an average daily volume of 39,000 shares.First Trust Nasdaq Semiconductor ETF (FTXL)First Trust Nasdaq Semiconductor ETF offers exposure to the most-liquid U.S. semiconductor securities based on volatility, value and growth by tracking the Nasdaq US Smart Semiconductor Index. FTXL holds 30 stocks in its basket, with Intel taking the top spot at 7.4% share (read: Bet on Top-Ranked Semiconductor ETFs Amid Surging Sales).First Trust Nasdaq Semiconductor ETF has accumulated $84.1 million in AUM. The average trading volume is light at around 10,000 shares and the expense ratio is 0.60%. FTXL has a Zacks ETF Rank #2 (Buy).First Trust NASDAQ Technology Dividend Index Fund (TDIV)First Trust NASDAQ Technology Dividend Index Fund provides exposure to dividend payers within the technology sector by tracking the Nasdaq Technology Dividend Index. It holds about 91 securities in its basket. Of these firms, Intel takes the fourth spot, making up for 7.5% of the assets. From a sector look, about 40% of the portfolio is dominated by semiconductors & semiconductor equipment, followed by software, IT services, and diversified telecommunications.First Trust NASDAQ Technology Dividend Index Fund has amassed $1.7 billion in its asset base while trading in a volume of around 140,000 shares per day. It charges 50 bps in annual fees.iShares Semiconductor ETF (SOXX)iShares Semiconductor ETF follows the ICE Semiconductor Index and offers exposure to U.S. companies that design, manufacture and distribute semiconductors. It holds 30 securities in its basket, with INTC taking the third spot, holding a 7.5% allocation.iShares Semiconductor ETF has amassed $6.8 billion in its asset base and trades in a volume of about 1 million shares a day. The product charges a fee of 43 bps a year from investors and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: Time for Semiconductor ETFs on Senate's CHIPS-Plus Bill Passage?).iShares Edge MSCI USA Value Factor ETF (VLUE)iShares Edge MSCI USA Value Factor ETF offers exposure to large- and mid-cap U.S. stocks with lower valuations based on fundamentals and tracks the MSCI USA Enhanced Value Index. It holds 150 stocks in its basket, with Intel occupying the top position at 5.2% of assets.  Information technology takes the largest share at 27.1%, while healthcare and consumer discretionary round off the next two.iShares Edge MSCI USA Value Factor ETF has amassed $9 billion in its asset base and charges 15 bps in annual fees. It trades in an average daily volume of 1 million shares and has a Zacks Rank #1 with a Medium risk outlook. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report iShares Semiconductor ETF (SOXX): ETF Research Reports First Trust NASDAQ Technology Dividend ETF (TDIV): ETF Research Reports iShares MSCI USA Value Factor ETF (VLUE): ETF Research Reports First Trust NASDAQ Semiconductor ETF (FTXL): ETF Research Reports Invesco PHLX Semiconductor ETF (SOXQ): ETF Research Reports To read this article on Zacks.com click here......»»

Category: topSource: zacksAug 1st, 2022

5 Hot Energy Earnings Charts

Energy companies have high Zacks Ranks as earnings estimates are on the rise heading into Q2 earnings reports. This is a big week for earnings with over 800 companies expected to report, including many of the FANGMAN stocks and other popular growth stocks.But included on the list are a bunch of energy stocks, all with Zacks Ranks of #1 (Strong Buy) and #2 (Buy) as earnings estimates are being raised into the second quarter earnings results this week.And they have good earnings surprise track records as well, with two companies sporting a perfect 5-year earnings surprise record. That’s impressive given the rocky road during the pandemic over the last 2 years.Energy stocks have sold off the last 6 weeks, as well, making for an unusual combination of rising Zacks Ranks and cheap valuation, with forward P/Es under 10.Many are also paying juicy dividends over 4%.Should energy stocks be on your wish list?5 Hot Energy Earnings Charts1.    Matador Resources MTDRMatador Resources has a perfect 5-year earnings surprise record. That’s impressive given that crude went negative in 2020 when the coronavirus pandemic hit.Matador Resources is the first of the energy producers to report earnings so it will be one to watch. Shares are up 29% year-to-date, but have fallen 8.7% in the last 3 months.Matador Resources is dirt cheap, with a forward P/E of just 4.3.Is this summer sell-off in the shares a buying opportunity in Matador?2.    Valero Energy VLOValero Energy operates in refining, not oil production. It, too, has a perfect 5-year earnings surprise track record which is also impressive.Valero Energy is a Zacks #1 (Strong Buy) with shares up 38.5% year-to-date. However, it has weakened over the last 2 months.Shares trade at just 5x forward earnings. Valero also pays a dividend, currently yielding 3.8%.Should investors be buying the refiners?3.    ExxonMobil XOMExxonMobil is a big oil company which has its hands in all aspects of the energy industry, including refining and service stations.ExxonMobil actually missed last quarter after beating the 6 quarters prior.Shares have soared 42% year-to-date, but ExxonMobil is still cheap with a forward P/E of just 7.6 as earnings estimates are on the rise. It’s a Zacks Rank #2 (Buy).Investors also get the dividend, currently yielding 4%.ExxonMobil shares have pulled back off recent highs. Is this a buying opportunity?4.    Chevron CVXChevron is also a big oil company with both upstream and downstream business segments.Chevron has missed 2 quarters in a row, which is surprising given how bullish the energy complex has been in 2022. Yet Chevron is still a Zacks Rank #2 (Buy) as earnings estimates are on the rise.Shares are up 23% year-to-date but are down 10% in the last 3 months.It’s also cheap, with a forward P/E of just 8. Chevron also pays an attractive dividend, yielding 3.9%.Is Chevron a hidden gem?5.    Phillips 66 PSXPhillips 66 is a refiner that is a Zacks Rank #1 (Strong Buy). It has only missed 1 time in the last 5 years and that was in 2021. Phillips 66 has beat 5 quarters in a row.Shares are up 17% year-to-date but Phillips 66 remains dirt cheap with a forward P/E of just 5.8.Phillips 66 also pays the highest regular dividend of these 5 companies, with a yield of 4.6%.Should income investors be considering Phillips 66? This Little-Known Semiconductor Stock Could Lead to Big Gains for Your Portfolio The significance of semiconductors can't be overstated. Your smartphone couldn't function without it. Your personal computer would crash in minutes. Digital cameras, washing machines, refrigerators, ovens. You wouldn't be able to use any of them without semiconductors. Disruptions in the supply chain have given semiconductors tremendous pricing power. That's why they present such a tremendous opportunity for investors. And today, in a new free report, Zacks' leading stock strategist is revealing the one semiconductor stock that stands to gain the most. It's yours free and with no obligation. >>Give me access to my free special report.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Valero Energy Corporation (VLO): Free Stock Analysis Report Phillips 66 (PSX): Free Stock Analysis Report Matador Resources Company (MTDR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJul 26th, 2022

Bull of the Day: Texas Pacific Land (TPL)

Texas Pacific Land is one of the few stocks making new all-time highs this year. Texas Pacific Land (TPL) is a Zacks Rank #1 (Strong Buy) that is landowners principally in the State of Texas. The Company generates revenue from pipeline, power line and utility easements, commercial leases, material sales and seismic and temporary permits related to land uses including midstream infrastructure projects and hydrocarbon processing facilities.The stock took off in late 2020 and into 2021, moving from $400 to $1770. From there, the stock saw a slow descent, back under the $1000 level earlier this year.But investors have been buying the stock since those bottoms in Q1. The stock is back at all time highs and should be watched for buying opportunities.  More about TPLThe company describes itself as a “Pure play in the Permian Basin”. Texas Pacific Land was founded in 1888 and is headquartered in Dallas, Texas. It employs about 100 people and has a market cap of $13.5 billion.TPL engages in the land and resource management, and water services and operations businesses.The company's Land and Resource Management segment manages approximately 880,000 acres of land in 19 counties in the western part of Texas. It rents this land out to oil and gas producers that pay fees for use of that that land.Texas Pacific also has a Water Services and Operations segment that provides full-service water offerings.The stock has a Zacks Style Score of “B” in Momentum and “C” in Growth. However, it has a “F” in Value, due to the high Forward PE of 28. While the PE is high, investors value the free cash flow more, which has been high due to higher energy prices.Q1 Earnings On May 4th, TPL reported an 8% EPS miss for Q1. While the company missed the estimates, the year over year numbers came in almost double from last year.For earnings, the company saw $12.64 v the $6.45 last year. And for revenues, $147.M vs the $84.2M last year.The company raised their dividend 9.1% and boosted their special dividend to $20 a share.Here are some comments from management on the special dividend and the quarter:“With tailwinds of favorable commodity prices, strong production, and a debt-free balance sheet, we’re pleased to announce a $20 per share special dividend as our shareholders reap the windfall of supportive underlying fundamentals.”The company added that the dividend is on top of their $100 million share repurchase program and they will continue to return capital back to shareholders.Estimates RisingAnalyst are getting excited about the upcoming quarters and raising estimates across all time frames.Ove the last month, estimates for the current quarter have gone from $15.10 to $15.84, a move of 5%. For the current year, we have seen a move of 3.5% higher, with estimates moving from $60.73 to $62.91.Next year’s estimates are also moving higher. Over the last 60 days, estimates have gone from $67.26 to $70.60, or 5%.Strength in a Weak MarketTPL has not only been a great place to hide, it has been very rewarding. The stock is up almost 50% so far in 2022 and over 120% since the beginning over 2020.In addition to the appreciation, investors are being rewarding with a small annual dividend and of course, the large special dividend. Investors should expect more special dividends in the future, due to the free cash flow that is being generated from high energy prices.   The Technical Take The stock is trading at all-time highs so instead of chasing it, investors might want to be patient and look for pullbacks.The 21-day moving average is at $1600, while the 50-day is at $1550. The 200-day MA is all the way down at $1330 and not likely to hit anytime soon.Looking at the Fibonacci levels, the pullback earlier this year came down into the 61.8% retracement at $930 and held. Investors looking for upside targets could target the -23.6% level at $2075.In Summary When markets are weak, investors should look for relative strength. Not only is TPL relatively strong, but the stock has taken off to all-time highs. This is a very positive sign for investors and when market sentiment improves, the stock could really get going.Investors should watch energy prices when owing a name like this. A large drop in oil and natural gas could destroy the narrative. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Texas Pacific Land Corporation (TPL): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksJul 25th, 2022

Jan. 6 live: Primetime hearing focuses on Trump"s actions during the deadly Capitol riot

The House select committee is investigating the Capitol riot and the role Donald Trump and his allies played in trying to overturn the 2020 election. Lawmakers listen as an image of a Trump campaign donation banner is shown behind them during a House January 6 committee hearing.Susan Walsh/AP Thursday's hearing in the Jan. 6 probe is focusing on Trump's actions as his supporters stormed the Capitol. Two administration officials — national security adviser Matthew Pottinger and deputy press secretary Sarah Matthews — are testifying. The panel plans to keep digging through August and with more hearings to come in September. Jan. 6 panel has summertime plansJan. 6 Committee vice-chair Liz CheneySaul Loeb/AFPThe January 6 Committee leaders kicked off Thursday's hearing by outlining their plans for more summertime work as their panel continues its investigation of the 2021 insurrection at the Capitol.Rep. Bennie Thompson, the panel's chairman, said via video that there'd be more hearings in September. A few moments later, Rep. Liz Cheney, said the panel plans to spend the August recess "pursuing emerging information on multiple fronts" before turning to additional hearings."The damn has begun to break," Cheney said.   Latest hearing will focus on Trump's reaction to the Capitol riot — and his alleged inaction to stop it.Former President Donald Trump gives the keynote address at the Faith and Freedom Coalition during their annual conference on June 17, 2022, in Nashville, Tennessee.Seth Herald/Getty ImagesThe House panel investigating the Capitol riot on January 6, 2021 will hold its eighth hearing on Thursday night.The hearing — scheduled to start at 8 p.m. ET — will focus on Trump's actions during the deadly insurrection at the Capitol building.Committee members have argued that Trump knew of the violence and refused to take actions to prevent or stop it, despite the pleas from advisors in his inner circle.Former national security adviser Matthew Pottinger and Sarah Matthews, former deputy press secretary in the Trump administration, are expected to testify.The committee is expected to add to the public's understanding of the critical 187 minutes between when Trump stirred up a crowd of his supporters at the Ellipse to when he posted a video to Twitter asking them to "go home."READ FULL STORYRep. Kinzinger says Trump acted like an angry child during January 6 attackRepublican Rep. Adam Kinzinger of Illinois during a hearing on Capitol Hill on March 10, 2021.Ting Shen-Pool/Getty ImagesGOP Rep. Adam Kinzinger, who is expected to play a leading role in Thursday's primetime hearing, will focus on Trump's mindset and actions as he watched his supporters assault law enforcement and desecrate the Capitol.In an interview with The Bulwark, Kinzinger said Trump "was someone who knew exactly what he was doing."Read Full StoryTrump spent most of the January 6 attack watching TV in the White House dining room: new videoFormer President Donald Trump speaks during a "Save America" rally in Anchorage, Alaska, on July 9, 2022.Justin Sullivan/Getty ImagesTrump spent the bulk of his time during the Capitol attack watching reports of the insurrection on TV, according to video testimony given to the January 6 House panel.Ahead of Thursday night's hearing on how Trump reacted to the storming of the Capitol, Rep. Adam Kinzinger, R-Ill., a member of the House Select Committee, shared a video compilation of the depositions on Twitter.—Adam Kinzinger (@RepKinzinger) July 21, 2022Read Full StorySecret Service may have violated federal law by deleting messages around January 6The leaders of the January 6 hearings say the Secret Service may have violated federal law by undergoing a process that led to text messages from the time of the Capitol riot to be deleted."The procedure for preserving content prior to this purge appears to have been contrary to federal records retention requirements and may represent a possible violation of the Federal Records Act," a letter from Reps. Bennie Thompson and Liz Cheney said.So far, the committee had received one text message from the agency.Jan. 6 hearings are 'undoubtedly starting to take a toll' on Trump's popularity, former ambassador saysFormer White House counsel Pat Cipollone is seen on a video display during the seventh hearing held by the Select Committee to Investigate the January 6th Attack on the U.S. Capitol on July 12, 2022.Sarah Silbiger-Pool/Getty ImagesA former ambassador who served during the Trump administration says the former president's popularity is taking a hit as more revelations about Trump's actions before and during the Capitol riot come out.Attorney Randy Evans, who was ambassador to Luxembourg, said the hearings' "steadiness, the repetitiveness, has had a corrosive effect."Evans added it's "all undoubtedly starting to take a toll — how much, I don't know. But the bigger question is whether it starts to eat through the Teflon. There are some signs that maybe it has. But it's too early to say right now."Read MoreSecret Service has only submitted 1 text to the Jan. 6 committee: panel memberThe House panel investigating the Capitol riot has received just one text message from the Secret Service in response to a subpoena, Rep. Zoe Lofgren said."In their letter they gave no indication that they have secured the phones in question and done some forensic work with them. That's something we want to know," Lofgren told MSNBC on Tuesday."Obviously, this doesn't look good ... Coincidences can happen but we really need to get to the bottom of this and get a lot more information than we have currently."Read Full StoryJan. 6 panel subpoenas Secret Service for text messages as DHS watchdog accuses agents of deleting them after being askedA US Secret Service agent takes position outside the White House in November 2020.J. Scott Applewhite/AP PhotoThe House committee investigating the Capitol riot has issued a subpoena to the US Secret Service after the Department of Homeland Security inspector general accused the agency of deleting text messages after being asked.Rep. Bennie Thompson, the committee's chairperson, said in a Friday letter to Secret Service director James Murray that the panel was seeking text messages from January 5 and 6, 2021.Thompson mentioned three previous requests for information, sent in January, March, and August of last year, pertaining to all communications between DHS officials and then-President Donald Trump about the Capitol riot.Read Full StoryThe Jan. 6 witness Trump tried to call is a White House support staffer, reports sayThe Jan. 6 committee witness whom former President Donald Trump is alleged to have tried to contact is a White House support staffer, reports say. At Tuesday's hearing, committee member Rep. Liz Cheney claimed that Trump sought to contact a witness who had not appeared publically, in what she characterized as a form of witness tampering. CNN first reported, citing two sources, that Trump made the call to the witness after the June 28 testimony by another witness, the former White House staffer Cassidy Hutchinson.According to the report, the support staffer was in a position to corroborate parts of Hutchinson's testimony, and had been providing evidence to the committee. NBC News later said it had confirmed CNN's reporting. Neither outlet named the person.Read Full StoryWatergate star witness predicts criminal charges after latest Jan. 6 testimony: 'Trump is in trouble'Former White House Counsel John Dean testifying on Capitol Hill on June 10, 2019.SAUL LOEB/AFP via Getty ImagesJohn Dean, a key witness in the Watergate investigation, said that former President Donald Trump and others will likely face legal repercussions from evidence presented at Tuesday's January 6 committee hearing. In an interview with CNN, Dean highlighted testimony by former members of extremist group the Oath Keepers, who were part of the mob that stormed the Capitol.Dean described them as "really classic authoritarian followers, following the leader."He argued that the testimony proves the extent to which the rioters believed they had been sent by Trump, which he said could be used by prosecutors were they to bring charges against the former president.Read Full StoryTrump 'liked the crazies' and wanted Alex Jones and Ali Alexander as Jan. 6 rally speakers despite red flags raised, former spokesperson saysKatrina Pierson, a former campaign spokesperson for Donald Trump and one of the organizers of the January 6 "Stop the Steal" rally, said Trump wanted Alex Jones and Ali Alexander to speak at the event despite the "red flags" they raised.On Tuesday, Rep. Stephanie Murphy, a member of the House select committee investigating the Capitol riot, played a video of Pierson's testimony to the panel in which Pierson commented on Trump's love for "crazies" like Jones and Alexander."Yes, I was talking about President Trump. He loved people who viciously defended him in public," Pierson said in her deposition.Read Full StoryPhoto shows Mark Meadows escorting Rudy Giuliani from the White House following 'UNHINGED' West Wing meeting about 2020 election resultsA photo that Cassidy Hutchinson took of Mark Meadows leading Rudy Giuliani away from the Oval Office.Courtesy of CSPANFormer Trump White House chief of staff Mark Meadows had to escort former Trump lawyer Rudy Giuliani from the Oval Office following a chaotic, late-night December 2020 West Wing meeting about the election results, according to new January 6 testimony.Cassidy Hutchinson, the former Trump White House aide whose explosive testimony stunned Washington last month, shared with the House Select Committee investigating the Capitol riot a photo she took of Meadows leading  Giuliani away from the Oval Office following the turbulent gathering, which was the site of a face-off between Trump's legal allies and White House lawyers over efforts to promote the then-president's baseless claims of election fraud, according to testimony.The January 6 panel shared the photo alongside real-time text messages Hutchinson was sending from the meeting during its seventh live hearing on Tuesday. READ FULL STORYFormer Twitter employee feared people were going to die on January 6A former Twitter employee told the House committee investigating the attack on the US Capitol that activity on the platform raised concerns that there would be deadly violence in Washington on January 6.The former employee, whose voice was obscured in a recording played during Tuesday's hearing, testified about trying and failing to get the company to intervene as former President Donald Trump's extremist supporters used the platform to repeat his statements about the upcoming protests to the 2020 election results.On the night of January 5, the employee testified about slacking a colleague, a message to the effect of, "When people are shooting each other tomorrow, I will try and rest in the knowledge that we tried."The former employee was on a team responsible for platform and content moderation policies during 2020 and 2021.READ FULL STORYOath Keepers attorney used the 'Queer Eye' loft kitchen from Season 3 as her video background before the January 6 committeeOath Keepers attorney Kellye SoRelle.C-SPANTestifying remotely before the House Select Committee investigating the January 6 insurrection, the Oath Keepers' attorney and acting president used a green screen background from the Netflix show "Queer Eye."Erin Ryan, host of Crooked Media's "Hysteria" podcast, tweeted out a screenshot of the remote deposition from Oath Keepers acting president Kellye SoRelle alongside an image from the third season of the streaming series, which Ryan said she found from a reverse Google image search.READ FULL STORYRep. Liz Cheney ends hearing with bombshell: Donald Trump called a witness in the House January 6 investigationFormer President Donald Trump called a witness in the congressional inquiry into the January 6, 2021 attack on the Capitol, Rep. Liz Cheney said Tuesday, prompting House investigators to notify the Justice Department. "After our last hearing, President Trump tried to call a witness in our investigation. A witness you have not yet seen in these hearings. That person declined to answer or respond to President Trump's call and, instead, alerted their lawyer to the call," said Cheney, a Wyoming Republican, in a bombshell revelation that concluded the House January 6 committee's seventh public hearing."Their lawyer alerted us, and this committee has supplied that information to the Department of Justice," she added. "Let me say one more time: We will take any effort to influence witness testimony very seriously."READ FULL STORYThe January 6 investigators obtained a video of Roger Stone reciting the Proud Boys' 'Fraternity Creed,' the first step for initiation to the extremist groupAn image of Roger Stone is shown on a screen as the House select committee investigating the Jan. 6 attack on the U.S. Capitol holds a hearing at the Capitol in Washington, Tuesday, July 12, 2022.Doug Mills/Pool via APNew details emerged at Tuesday's January 6 committee hearing on the close ties between Roger Stone and extremist groups, including that the longtime Donald Trump confidante was recorded reciting the Proud Boys' so-called "Fraternity Creed." Rep. Jamie Raskin, who co-chaired the public hearing, described reciting the creed as "the first level of initiation" into the far-right group, five members of which are scheduled to be tried on seditious conspiracy charges in December.  "Stone's ties to the Proud Boys go back many years," Raskin said. "He's even taken their so-called "Fraternity Creed," required for the first level of initiation to the group."Video then played showing Stone in a crowded outdoor setting, saying, "Hi, I'm Roger Stone. I'm a Western chauvinist, and I refuse to apologize for the creation of the modern world." READ FULL STORYTrump planned to call on his supporters to march to the Capitol on January 6, according to a draft tweetThe House committee investigating the Capitol riot on Tuesday revealed a draft tweet in which President Donald Trump called on his supporters to go to the US Capitol after his speech on January 6, 2021."I will be making a Big Speech at 10AM on January 6th at the Ellipse (South of the White House). Please arrive early, massive crowds expected. March to the Capitol after. Stop the Steal!!" Trump wrote in the draft tweet, which is undated.Trump never sent the tweet, but its existence, along with other messages exchanged between rally organizers, offer proof that the march to the Capitol was premeditated, the January 6 committee said.Democratic Rep. Stephanie Murphy of Florida presented the evidence during Tuesday's hearing, and said: "The evidence confirms that this was not a spontaneous call to action, but rather it was a deliberate strategy decided upon in advance by the president."READ FULL STORYTrump's ex-campaign manger Brad Parscale said in private texts that Trump is to blame for Capitol rioter's deathIn a series of texts revealed at the 7th hearing of the House select committee investigating the January 6 insurrection, President Donald Trump's former campaign manger Brad Parscale suggested in a message to former Trump campaign spokeswoman Katrina Pierson that Trump's words led to the death of a capitol rioter.Messages show Pierson tried to push back, writing that "it wasn't the rhetoric.""Katrina," Parscale wrote back. "Yes it was."Read Full StoryPat Cipollone suggested Pence should get the Presidential Medal of Freedom for refusing to block the Electoral Collage count certificationA video of Pat Cipollone, former White House counsel, is shown as the House select committee investigating the Jan. 6 attack on the U.S. Capitol holds a hearing at the Capitol in Washington, Tuesday, July 12, 2022.Doug Mills/Pool via AP"I think the vice president did the right thing, I think he did the courageous thing," Cipollone said in testimony revealed at the House January 6 committee's seventh public hearing on Tuesday. "I have a great deal of respect for Vice President Pence."Cipollone added that he didn't think Pence had any "legal authority" to do anything other than refuse to give into President Donald Trump's pressure campaign and interfere with the Electoral College certification on January 6, 2021.Read Full Story  11 House Republicans met with Trump to strategize overturning the election results on January 6, and 5 of them later asked for pardonsAccording to Democratic Rep. Stephanie Murphy of Florida, a member of the January 6 committee, several Republicans met at the White House on December 21, 2020, as part of an effort to "disseminate his false claims and to encourage members of the public to fight the outcome on January 6."Vice President Mike Pence, White House Chief of Staff Mark Meadows, and Rudy Giuliani were all at the meeting, along with President Donald Trump.According to White House visitor logs, Rep. Brian Babin of Texas, Rep. Andy Biggs of Arizona, Rep. Matt Gaetz of Florida, Rep. Louie Gohmert of Texas, Rep. Paul Gosar of Florida, Rep. Andy Harris of Maryland, Rep. Jody Hice of Georgia, Rep. Jim Jordan of Ohio, Rep. Scott Perry of Pennsylvania, and Rep-elect Marjorie Taylor Greene of Georgia all attended the meeting.Read Full StoryFormer Twitter employee tells January 6 committee that Trump received special treatment from TwitterAn evidence tweet is shown on a screen during a full committee hearing on "the January 6th Investigation," on Capitol Hill on July 12, 2022, in Washington, DC. - The House committee probing the 2021 assault on the US Capitol is examining connections between associates of former US President Donald Trump and far right-wing extremist groups at its seventh hearing on Tuesday.SAUL LOEB/AFP via Getty Images"I believe that Twitter relished in the knowledge that they were also the favorite and most used service of the former president and enjoyed having that sort of power within the social media ecosystem," the former Twitter employee told investigators in testimony aired in Tuesday's hearing of the congressional committee investigating January 6.The employee, whose identity was kept secret, was introduced by Rep. Jamie Raskin as having worked on Twitter's content moderation team from 2020 to 2021.Read Full StoryCassidy Hutchinson texted a fellow White House aide 'the west wing is UNHINGED' as Oval Office meeting almost devolved into a brawlCassidy Hutchinson, a top former aide to Trump White House Chief of Staff Mark Meadows, testifies during the sixth hearing by the House Select Committee on the January 6th insurrection in the Cannon House Office Building on June 28, 2022 in Washington, DC.Andrew Harnik-Pool/Getty ImagesAccording to messages released by the House January 6 committee, Hutchinson texted the message to another top aide, Anthony Ornato.It was sent amid the scene of a December 2020 Oval Office meeting as Trump attorney Sidney Powell and White House lawyers clashed over efforts to push Trump's debunked election fraud claims. Read Full Story Former White House counsel Pat Cipollone 'set a new land speed record' trying to break up a meeting between Trump, Michael Flynn, and Overstock's CEO, Sidney Powell saidDemocratic Rep. Jamie Raskin of Maryland, one of the committee members leading Tuesday's January 6 hearing, said former President Donald Trump, election lawyer Sidney Powell, former National Security Advisor Michael Flynn, and Patrick Byrne, the CEO of Overstock.com, had met to discuss an ongoing effort to reverse the results of the 2020 election.Powell told investigators in previously recorded testimony, however, that the group had "probably no more than 10 or 15 minutes" with Trump before Pat Cipollone, then the White House Counsel, intercepted the meeting."I bet Pat Cipollone set a new land speed record," Powell quipped.Rep. Jamie Raskin says the 'oldest domestic enemy' of US democracy' is 'whipping up mob violence to destroy fair elections'Vice Chair Liz Cheney, R-Wyo., left, listens as Rep. Jamie Raskin, D-Md., speaks as the House select committee investigating the Jan. 6 attack on the U.S. Capitol holds a hearing at the Capitol in Washington, Tuesday, July 12, 2022.AP Photo/J. Scott Applewhite"The problem of politicians whipping up mob violence to destroy fair elections is the oldest domestic enemy of constitutional democracy in America," Raskin said in his opening statement during Tuesday's January 6 hearing.He mentioned a time during Abraham Lincoln's presidency, when an 1837 racist mob in Alton, Illinois, during which rioters broke into an abolitionist newspaper's office and murdered the paper's editor, Elijah Lovejoy."If racist mobs are encouraged by politicians to rampage and terrorize, Lincoln said, they will violate the rights of other citizens and quickly destroy the bonds of social trust necessary for democracy to work," Raskin said.Read Full StoryConvicted Capitol rioter testifying in front of the committee warned that a 'Civil War will ensue' if Trump got robbed in 2020Stephen Ayres, who pleaded guilty last month to disorderly conduct in connection to the January 6, 2021, Capitol riot, is set to testify in from to the House committee investigating the January 6 attack.His testimony is expected to underscore how Trump summoned supporters to Washington DC on the day Congress was scheduled to certify the results of the 2020 presidential election.On December 26, 2020, Ayres posted to Twitter: "If the [deep state] robs president Trump!!! Civil War will ensue!" It was posted days after Trump called for a "big protest" in his own tweet.Read Full StoryEx-White House counsel Pat Cipollone was against Trump naming Sidney Powell special counselA video of former White House counsel Pat Cipollone is shown as the House select committee investigating the Jan. 6 attack on the U.S. Capitol holds a hearing at the Capitol in Washington, Tuesday, July 12, 2022.AP Photo/J. Scott ApplewhiteIn previously unseen footage from his deposition to the House Select Committee last Friday, Cipollone spoke about Powell being Trump's pick to be special counsel for the Department of Justice to investigate repeatedly disproven wide spread voter fraud in the 2020 presidential election."I was vehemently opposed," Cipollone said when asked about Powell being made special counsel. "I didn't think she should've been appointed to anything."Read Full StoryRep. Jamie Raskin says Trump 'electrified and galvanized' his extremist supporters with a tweet calling for a 'big protest'Jamie Raskin listens as the House select committee investigating the Jan. 6 attack on the U.S. Capitol holds a hearing at the Capitol in Washington, Tuesday, July 12, 2022.AP Photo/J. Scott ApplewhiteRaskin, a Maryland Democrat, referenced a December 19, 2020, tweet from Trump during the House's January 6 committee hearing on Tuesday."Big protest in D.C. on January 6th," Trump's tweet said. "Be there, will be wild!" Raskin said that Trump's tweet spurred on "the dangerous extremists in the Oathkeepers, the Proud Boys and other racist and white nationalist groups spoiling for a fight against the government.""Here were thousands of enraged Trump followers, thoroughly convinced by the Big Lie who traveled from across the country to join Trump's wild rally to 'stop the steal,'" he added. "With the proper incitement by political leaders, and the proper instigation from the extremists, many members of this crowd could be led to storm the Capitol, confront the vice president in Congress and try to overturn the 2020 election results."Read Full Story  Ivanka Trump told the House January 6 committee that she believed her father lost re-election 'probably prior' to a formal Electoral Collage vote in December 2020Ivanka Trump.Drew Angerer/Getty ImagesIvanka Trump told the House January 6 committee that she believed her father lost the 2020 presidential election likely before a formal Electoral College vote on December 14, 2020."Was that an important day for you? Did that affect your planning or your realization as to whether or not there was going to be an end to this administration?" an attorney for the committee asked Ivanka Trump in video taped testimony."I think it was my sentiment, probably prior as well," Ivanka Trump said in response.Read Full StoryPat Cipollone's testimony 'met our expectations," Cheney saysFormer White House Counsel Pat Cipollone.Jabin Botsford/The Washington Post via Getty ImagesJanuary 6 committee vice chair and Republican Rep. Liz Cheney said former White House Counsel Pat Cipollone testified before the panel — and that his testimony "met our expectations."The House committee then aired several clips of Cipollone's sworn testimony at the start of their seventh hearing on Tuesday.Cipollone told the January 6 committee that he agreed Trump should concede the 2020 election and that he lost to Democratic nominee Joe Biden fair and square.  Read Full StoryCheney: Trump is 'not an impressionable child'GOP Rep. Liz CheneyAP Photo/ Andrew Harnik)GOP Rep. Liz Cheney pushed back on excuses for former President Donald Trump's actions during the Capitol riot, saying he was not simply misled about his election lies but knew they were false."President Trump is a 76-year-old man," Cheney said as the January 6 committee began its hearing on Tuesday. "He is not an impressionable child. Just like everyone else in our country, he is responsible for his own actions and his own choices."Cheney said evidence shows Trump was warned "over and over" that there was no sign of widespread election fraud."No rational or sane man in his position could disregard that information and reach the opposite conclusion," she said, "and Donald Trump cannot escape responsibility by being willfully blind."Read Full StoryJan. 6 committee's next hearing expected to link Trump even more closely to the Capitol attackLawmakers on the House January 6 committee will air the inquiry's findings during a public hearing Thursday.Kent Nishimura / Los Angeles Times via Getty ImagesFrom its very first hearing, the House committee investigating the January 6, 2021, attack on the Capitol made a point of connecting former President Donald Trump to the violence of that day.A month later, the House panel is poised to delve even deeper. At its next public hearing, set for 1 p.m. ET Tuesday, the committee is expected to focus on how the violent pro-Trump mob coalesced on January 6 and the involvement of far-right groups, including the Proud Boys and the Oath Keepers.Committee aides said Monday during a background call with reporters that the panel's seventh hearing would underscore how a single tweet from Trump mobilized his supporters, proving a "pivotal moment that spurred a chain of events, including pre-planning by Proud Boys.""Big protest in D.C. on January 6th," Trump tweeted on December 19, 2020. "Be there, will be wild!"READ FULL STORYCassidy Hutchinson's testimony jolted the DOJ into focusing on Trump in its Jan 6 investigation, report saysCassidy Hutchinson testifying before the Jan. 6 committee on June 28, 2022.Jacquelyn Martin/AP PhotoTestimony by Jan. 6 witness Cassidy Hutchinson sparked debate among top Justice Department officials about Donald Trump's potential criminal culpability for the Capitol riot, The New York Times reported. The June 28 testimony by the former White House aide prompted officials to discuss Trump's actions on January 6, 2021, and questions about potential legal ramifications for the former president, sources told The Times. Present at some of the discussions were Attorney General Merrick Garland, and Deputy Attorney General Lisa Monaco, the report said. Read Full StoryCassidy Hutchinson and Rep. Liz Cheney have forged an 'unlikely bond' amid January 6 testimony process, per reportCassidy Hutchinson, the former Trump White House aide whose explosive January 6 testimony stunned Washington last month, has found a friend and ally in Rep. Liz Cheney, the Wyoming Republican who has been ostracized from the GOP for criticizing the former president and serving as vice-chair on the House Select Committee investigating the January 6 Capitol riot, according to The New York Times.The two Republican women — both on the outs with the party's overwhelming Trump faction — have developed an unlikely bond in recent weeks as the January 6 panel riot zeroes in on increasingly damning testimony against former President Donald Trump.The congresswomen admires Hutchinson's dedication to country over personal power, according to The Times. "I have been incredibly moved by young women that I have met and that have come forward to testify in the Jan. 6 committee," Cheney said in a recent speech at the Reagan Library.Read Full Story A bad day for Steve BannonSteve Bannon asked to delay his mid-July trial by at least three months.Kevin Dietsch/Getty ImagesMonday was not a good day in court for Steve Bannon.The former Trump aide lost on several key pre-trial motions ahead of his upcoming July 18 federal trial on contempt of Congress charges.U.S. District Court Judge Carl Nichols, a Trump appointee, ruled from the bench that Bannon's defense attorneys couldn't use several of their planned arguments. Nichols also denied Bannon's bid to have the trial date delayed.Insider's Ryan Barber was at the courthouse in Washington, DC, and has more in his dispatch linked below. Read Full Story'That mob on the Mall'An Oath Keeper from Idaho in Bozeman, Montana.William Campbell/Corbis via Getty ImagesWe've got a handy preview for you on Tuesday's next big House January 6 hearing, which will focus on the right-wing extremist groups that in the words of Rep. Adam Schiff helped lead "that mob on the Mall." Laura Italiano breaks down the five potential bombshells she'll be looking out for when the panel convenes at 1 pm. Check out what those are here:Read Full Story The most shocking revelations from the January 6 committee's first hearings on the Capitol attackCassidy Hutchinson, former aide to Trump White House chief of staff Mark Meadows, testifies as the House select committee investigating the Jan. 6 attack on the U.S. Capitol continues to reveal its findings of a year-long investigation, at the Capitol in Washington, Tuesday, June 28, 2022.Jacquelyn Martin/AP PhotoThe next January 6 committee hearing is scheduled for July 12, at 10 a.m. ET.Catch up on the biggest revelations from the public hearings thus far.Read Full StoryTeasing new witnesses, Rep. Adam Kinzinger says of Trump and his allies: 'They're all scared. They should be.'Rep. Adam Kinzinger (R-IL).Andrew Harnik-Pool/Getty ImagesIn a series of Sunday tweets, Rep. Adam Kinzinger said Donald Trump and his allies, including House Minority Leader Kevin McCarthy, are "scared" following last week's testimony by Cassidy Hutchinson before the Jan. 6 select committee. "This BIPARTISAN committee has been able to find out things that up until recently were denied by the Jan 6th truthers, so they are left with trying to discredit a young woman with more courage than they could muster in a lifetime. Except… that isn't working," Kinzinger tweeted."Cassidy doesn't seek the limelight, but she is compelled with honor. She didn't even have to swear an oath to the constitution like Kevin, Elise, Kristi Noem and others did. But she volunteered to come under oath to tell what she knows. She is a better person than them all. "Read Full StoryLiz Cheney says the January 6 panel won't 'stand by' and let 'men who are claiming executive privilege' attack Cassidy Hutchinson's characterCassidy Hutchinson, a top former aide to Trump White House Chief of Staff Mark Meadows, arrives to testify during the sixth hearing by the House Select Committee on the January 6th insurrection in the Cannon House Office Building in Washington, DC, on June 28, 2022.Anna Moneymaker/Getty ImagesRep. Liz Cheney in an interview that aired on Sunday reaffirmed her confidence in former Trump White House aide Cassidy Hutchinson's testimony and said that the House panel investigating the January 6, 2021, riot at the Capitol wouldn't sit by idly and let her endure anonymous attacks.While sitting down with ABC News chief Washington correspondent Jonathan Karl at the Ronald Reagan Presidential Library in Simi Valley, Calif., the Wyoming Republican expressed confidence in Hutchinson and the credibility of future hearings."What Cassidy Hutchinson did was an unbelievable example of bravery and of courage and patriotism in the face of real pressure," she said."The Committee is not going to stand by and watch her character be assassinated by anonymous sources and by men who are claiming executive privilege. And so we look forward very much to additional testimony under oath on a whole range of issues," she added.Read Full StoryKinzinger says new witnesses have been coming forward to the Jan. 6 committee since Cassidy Hutchinson's 'inspiring' testimonyRep. Adam Kinzinger of Illinois.Chip Somodevilla/Getty ImagesRep. Adam Kinzinger says that more witnesses have come forward since Cassidy Hutchinson's blockbuster testimony during the Jan 6. hearings last week.  "She's been inspiring for a lot of people," Kinzinger said Sunday on CNN's  "State of the Union." "Every day, we get new people that come forward and say, 'hey, I didn't think maybe this piece of the story that I knew was important, but now that you guys are talking' — I do see this plays in here."Hutchinson, an ex-aide to White House chief of staff Mark Meadows, revealed in front of the Jan. 6 committee shocking details of former president Donald Trump's behavior on the day of the Capitol attack, including that he attempted to grab the steering wheel of his SUV and lunged at one of his Secret Service agents, as Insider's Grace Panetta previously reported. "I mean, look, she is going to go down in history," Kinzinger said, referring to the 25-year-old. "People can forget the names of every one of us on the committee. They will not forget her name. And, by the way, she doesn't want that. She doesn't want to be out in the public spotlight."Read Full StoryLiz Cheney says the Jan. 6 committee could potentially make multiple criminal referrals, including one against TrumpU.S. Rep. Liz Cheney (R-WY) Vice Chairwoman of the Select Committee to Investigate the January 6th Attack on the U.S. Capitol, delivers remarks during a hearing on the January 6th investigation on June 9, 2022.Win McNamee/Getty ImagesRep. Liz Cheney in an interview broadcast on Sunday said that the House committee investigating the January 6, 2021, riot at the Capitol could potentially make multiple criminal referrals, including one against former President Donald Trump.During an interview on ABC's "This Week," Cheney — who serves as the vice-chair of the panel — was asked by correspondent Jonathan Karl if the work conducted by its members has shown that Trump's conduct warrants prosecution."Ultimately, the Justice Department will decide that," the Wyoming Republican said. "I think we may well as a committee have a view on that."She continued: "If you just think about it from the perspective of what kind of man knows that a mob is armed and sends the mob to attack the Capitol and further incites that mob when his own vice president is under threat — when the Congress is under threat? It's just very chilling. And I think certainly we will continue to present to the American people what we've found."Read Full StoryDOJ wants a DC judge to reject Steve Bannon's request to delay his contempt-of-Congress trial over January 6 hearings' publicity, saying that he has 'barely been mentioned'Steve Bannon argued in April that his criminal prosecution should be dismissed.Tom Williams/CQ-Roll Call, Inc via Getty ImagesThe Department of Justice asked a DC judge on Friday to reject Trump ally Steve Bannon's request to delay his contempt-of-Congress trial, arguing that the January 6 hearings have not revolved around him to the point of distraction.On Wednesday, Bannon's lawyers asked a DC judge to delay his July 18 trial, citing a "media blitz" from the public January 6 committee hearings and saying the request was "due to the unprecedented level of prejudicial pretrial publicity."DOJ lawyers said that Bannon is not as popular as he thinks he is."The Defendant's motion gives the false impression — through general statistics about the volume of viewership of the Committee's hearings and overall media coverage of the Committee's hearings — that all of the Committee's hearings and the attendant media coverage is about him," DOJ lawyers wrote in a filing on Friday. "The truth is just the opposite — the Defendant has barely been mentioned in the Committee's hearings or the resulting media coverage of them."Read More2 Secret Service sources told CNN that Trump angrily demanded to be taken to the Capitol on January 6, partly confirming Cassidy Hutchinson's explosive testimonyFormer President Donald Trump.SAUL LOEB/AFP via Getty ImagesTwo Secret Service sources told CNN on Friday that they heard about former President Donald Trump lunging at the driver of his presidential SUV on January 6, 2021.The pair of sources, who spoke under the condition of anonymity, backed up much of former Trump aide Cassidy Hutchinson's explosive testimony on the altercation in the motorcade vehicle known as "the Beast" after Trump found out he wouldn't be driven to join his supporters at the Capitol."He had sort of lunged forward – it was unclear from the conversations I had that he actually made physical contact, but he might have. I don't know," one of the Secret Service sources told CNN. "Nobody said Trump assaulted him; they said he tried to lunge over the seat – for what reason, nobody had any idea."Read Full StoryMichael Cohen says Trump uses a 'mob boss' playbookMichael Cohen, Donald Trump's former personal attorney, compared the former president to a "mob boss" amid allegations that Trump allies sought to intimidate Jan. 6 witnesses."Donald Trump never changes his playbook," Cohen told The Washington Post. "He behaves like a mob boss, and these messages are fashioned in that style. Giving an order without giving the order. No fingerprints attached."Read Full StoryTrump allies paid legal fees for multiple Jan. 6 witnesses, including Cassidy Hutchinson, sparking witness-influencing concerns, report saysCassidy Hutchinson, a former top aide to Trump White House Chief of Staff Mark Meadows, testifies before the January 6 committee in Washington, DC, on June 28, 2022.Brandon Bell/Getty ImagesFormer President Donald Trump's allies and supporters paid the legal fees for multiple people who had provided testimony to the January 6 committee, including the former White House aide Cassidy Hutchinson, The New York Times reported.Hutchinson eventually fired the lawyer who was paid for a pro-Trump group, and went on to provide damning testimony about Trump, the report said. Two sources familiar with the committee told The Times that they believe Hutchinson's decision to part ways with the lawyer — who had been recommended by Trump allies and paid for by a pro-Trump PAC — likely played a role in her decision to provide new evidence. There are no laws against a third party paying for a witness' legal representation in a congressional inquiry, but the situation may raise some ethical concerns, according to the report.Read Full StoryFormer Secret Service agent said he, too, would have defied Trump's request to be taken to the Capitol on January 6Former President Donald Trump and former Vice President Mike Pence.PhoPhoto by Brendan Smialowski / AFP via Getty ImagesFormer Secret Service agent Jonathan Wackrow said in an op-ed that he also would not have taken then-President Donald Trump to the Capitol on January 6, 2021.In an op-ed published by Newsweek, Wackrow said he was shocked by Cassidy Hutchinson's testimony to the January committee regarding Trump's actions on the day of the Capitol riot. Hutchinson, a former aide in the Trump White House, claimed that Trump had gotten into a physical altercation with the head of his security detail while demanding to be brought to the Capitol."If I had been working on Trump's security detail on January 6, I would have made the same decision as Secret Service Special Agent in Charge Robert Engel to not go to the Capitol based on the known escalating threats," Wackrow wrote.He added, however, that he believed Trump still respects the Secret Service because he probably has seen "first-hand what they're willing to do to protect him and his family." Read Full StoryGOP Rep. Adam Kinzinger says Cassidy Hutchinson is a 'hero' and has 'more courage than most' Republicans after January 6 testimonyCassidy Hutchinson testifies during the sixth hearing by the House Select Committee on the January 6th insurrection.Andrew Harnik-Pool/Getty ImagesGOP Rep. Adam Kinzinger of Illinois on Thursday applauded Cassidy Hutchinson for her testimony to the January 6 committee, saying the former top aide to White House chief of staff Mark Meadows has "more courage" than most of his Republican colleagues. "Cassidy Hutchinson is a hero and a real patriot (not a faux 'patriot' that hates America so much they would attempt a coup.)," Kinzinger, one of two Republicans on the House committee investigating the January 6 insurrection, said in a tweet."Of course they will try to bully and intimidate her. But she isn't intimidated. More courage than most in GOP," Kinzinger added of Hutchinson.Read Full StoryGOP Sen. Pat Toomey says Trump's chances of winning the party's 2024 presidential nomination are 'much more tenuous' following the January 6 committee's hearingsRepublican Sen. Pat Toomey of Pennsylvania at the White House with Trump in February 2018.AP Photo/Evan VucciRepublican Sen. Pat Toomey of Pennsylvania suggested Thursday that public hearings from the House select committee investigating January 6, 2021, had damaged former President Donald Trump politically, even among Republicans.At the end of a wide-ranging interview with Bloomberg that focused on the Supreme Court's recent ruling on the Environmental Protection Agency and the Federal Reserve's approach to tackling inflation, the retiring lawmaker was asked whether he believed the hearings would preclude Trump from seeking a second term as president in 2024."I don't know that it means that. I mean he gets to decide whether he's going to run," said Toomey, who was one of seven Republican senators who voted to convict Trump on a charge of incitement of an insurrection after the Capitol riot."Look, I think he disqualified himself from serving in public office by virtue of his post-election behavior, especially leading right up to January 6," Toomey said. "I think the revelations from this committee make his path to even the Republican nomination much more tenuous."Read Full StoryCheney 'absolutely confident' that former White House aide's explosive testimony is credibleRepublican Rep. Liz Cheney of Wyoming, vice-chair of the select committee investigating the January 6 attack on the Capitol, speaks during a business meeting on Capitol Hill on December 13, 2021 in Washington, DC.Anna Moneymaker/Getty ImagesRepublican Rep. Liz Cheney, who serves as vice-chair of the House's January 6 committee, said she is "absolutely confident" that a former White House aide's damning testimony is accurate."I am absolutely confident in her credibility. I'm confident in her testimony," Cheney told ABC News's Jonathan Karl about the allegations made by top Trump White House aide Cassidy Hutchinson this week.Cheney said that Hutchinson showed "an unbelievable example of bravery and of courage" by testifying.Read MoreBannon wants his contempt trial to be delayed because of Jan. 6 hearingsSteve Bannon outside of the E. Barrett Prettyman U.S. Courthouse on June 15, 2022 in Washington, DC.Kevin Dietsch/Getty ImagesTrump ally Steve Bannon has asked for his contempt-of-Congress trial to be delayed because the hearings on the Capitol riot are getting so much publicity.A federal grand jury indicted Bannon in November 2021 on two counts of contempt of Congress after he refused to comply with a subpoena from the House committee investigating the Capitol riot.In a Wednesday court filing, Bannon's lawyers argued that the coverage of the committee's hearings would make his trial unfair.Read More January 6 panel subpoenas former White House counsel Pat CipolloneFormer White House Counsel Pat Cipollone said he would testify about Jeffrey Clark, a DOJ official who outlined ways for Trump to challenge the 2020 election.Alex Wong/Getty ImagesThe House's panel investigating the Capitol riot on January 6, 2021, has subpoenaed former White House counsel Pat Cipollone.The demand for Cipollone to appear before the committee comes after explosive testimony from a former top White House aide in the Trump administration, who described Trump and his inner circle's actions before and during the insurrection.Read Full StoryFormer Secret Service agent says Trump's 'girth' would have made it impossible to attack driverOutgoing US President Donald Trump waves as he boards Marine One at the White House in Washington, DC, on January 20, 2021.MANDEL NGAN/AFP via Getty ImagesA former White House aide testified that former President Donald Trump grabbed the steering wheel of his SUV and lunged at a Secret Service agent on January 6, 2021, after they refused to take him to the Capitol building.But former Secret Service agents told Insider they have doubts about the story."Trump's not a little guy, right? And the space to actually be able to lunge towards the wheel is not that big," one former agent said, speaking on background to Insider.  "I don't mean to sound disparaging to the former president, but just his girth would prevent him from actually getting to the steering wheel."Keep ReadingHouse Republican who led rioter on tour before insurrection could oversee Capitol policeRep. Barry LoudermilkBill Clark/CQ-Roll Call via Getty ImagesRepublican Rep. Barry Loudermilk — who led a Capitol rioter on a tour of the building the day before the insurrection — could end up overseeing Capitol police.If Republicans regain control of the House, Loudermilk would be next in line to lead the committee that has oversight over the police force attacked by Trump supporters on January 6, 2021.Loudermilk has faced backlash from Democrats after video showed him taking a group on a tour of the Capitol building, showing them hallways, security areas, and stairwells. The next day, members of the tour flaunted a sharpened flagpole bearing the American flag as they marched near the Capitol.It remains unclear whether the group entered the Capitol building itself during the riot.Read Full Story Former Jan. 6 committee investigator announces run for SenateSenior investigative counsel John Wood questions witnesses during the third public hearing of the January 6 committee on June 16, 2022.Anna Moneymaker/Getty ImagesJanuary 6 committee investigator John Wood is launching an independent Senate campaign in Missouri in an effort to stop GOP nominee Eric Greitens.Wood told the St. Louis Post-Dispatch that he believes Greitens — the former Missouri governor — is likely to win the Republican nomination, and that voters deserved an alternative.Wood, a Republican, said he will run as an independent.Read MoreTrump ally says Hutchinson's testimony was a 'campaign commercial' for Ron DeSantis in 2024Florida Gov. Ron DeSantisPhelan M. Ebenhack/AP PhotoExplosive testimony by a former Trump White House aide could be a boost to Florida Gov. Ron DeSantis to replace Trump on the presidential ticket in 2024, CNN reported.One Trump adviser said the hearings — which painted as Trump as violent and volatile — were "basically a campaign commercial" for DeSantis. Another told CNN that "no one is taking this lightly."DeSantis has flirted with larger political ambitions and is a rising Republican star who would be poised to fill the leadership vacuum if Trump is forced aside.Read Full StorySecret Service agents willing to dispute Hutchinson's claims about Trump's outburst, reports sayFormer President Donald TrumpSAUL LOEB/AFP via Getty ImagesSecret Service agents are willing to testify before the January 6 House panel to refute former White House aide Cassidy Hutchinson's claim that Trump tried to grab the steering wheel when he demanded to be taken to the Capitol on the day of the insurrection, according to multiple reports.The driver of the car and the head of Trump's security are ready to testify under oath that the former President never lunged for the wheel or physically assaulted the driver, according to CBS News.Read More Hutchinson's testimony could lead to legal trouble for Trump: reportCassidy Hutchinson, former aide to Trump White House chief of staff Mark Meadows, testifies as the House select committee investigating the Jan. 6 attack on the U.S. Capitol continues to reveal its findings of a year-long investigation, at the Capitol in Washington, Tuesday, June 28, 2022.Jacquelyn Martin/AP PhotoFormer aides to Donald Trump worry the explosive testimony by a former White House aide could put Trump in legal jeopardy, according to the New York Times."This hearing definitely gave investigators a lot to chew on," former Attorney General Bill Barr told the Times after testimony from top White House aide Cassidy Hutchinson detailed Trump's behavior on the day of the Capitol riot.Hutchinson's testimony painted Trump as a volatile man who knew his supporters were armed on January 6, 2021. Trump also demanded to be taken to the Capitol building, but his security staff refused, Hutchinson said.Mick Mulvaney, who was once Trump's White House Chief of Staff, said evidence of possible witness tampering could open his orbit up to charges.Keep Reading  Former Trump press secretary shares text that appears to show Melania Trump to condemn Capitol riot violenceMelania Trump speaks at the White House on October 09, 2019Chip Somodevilla/Getty ImagesFormer Trump Press Secretary Stephanie Grisham shared a text exchange on Tuesday that purportedly showed former First Lady Melania Trump refusing to condemn the violence during the Capitol riot. The apparent screengrab of a text exchange was between Grisham and a person named "MT." "Do you want to tweet that peaceful protests are the right of every American, but there is no place for lawlessness & violence?" read the message. "No," the person replied.Representatives for Melania Trump at Trump's post-presidential press office did not respond to a request for comment from Insider.Read Full StoryJohn Eastman drops lawsuit blocking his phone records from January 6 committeeJohn Eastman testifies before the House Ways and Means Committee hearing on Capitol Hill in Washington, Tuesday, June 4, 2013.Charles Dharapak/APIn a late Tuesday filing, John Eastman dropped a lawsuit he'd filed to prevent the Jan. 6 committee from accessing his phone records."Plaintiff brought this lawsuit primarily to protect the content of his communications, many of which are privileged," the latest filing read. "The Congressional Defendants represented in their motion to dismiss that they were not seeking the content of any of Plaintiff's communications via the subpoena they had issued to Defendant Verizon."The former Trump lawyer's phone was seized by federal agents on June 22, according to a separate suit he filed on Monday, seeking the return of his property. Of interest to investigators are call logs from Eastman's personal device, and the search warrant indicates investigators will not review any additional content from his phone without a court order. Read Full StoryTrumpworld shocked by former White House aide Cassidy Hutchinson's explosive January 6 testimony, calling it the 'most damning day' and 'insane'Cassidy Hutchinson, former aide to Trump White House chief of staff Mark Meadows, testifies as the House select committee investigating the Jan. 6 attack on the U.S. Capitol continues to reveal its findings of a year-long investigation, at the Capitol in Washington, Tuesday, June 28, 2022.Jacquelyn Martin/AP PhotoIt took six hearings for the January 6 select committee to finally break through to embattled former President Donald Trump's inner circle.Cassidy Hutchinson, a top aide to then-White House Chief of Staff Mark Meadows, testified during a surprise hearing Tuesday that Trump was determined to go to the US Capitol with his armed supporters on January 6, 2021, as Congress was certifying the election results. Hutchinson's additional revelations about that day came crashing down on Trumpworld during the two-hour hearing. Among them were that Meadows told Hutchinson "things might get real, real bad" on January 6, that Trump knew his supporters were armed when they flooded the Ellipse to attend his "Stop the Steal" rally, and that Trump said "Mike deserves it" when rioters chanted "hang Mike Pence." "Definitely most damning day of testimony," one former White House aide told Insider. READ MOREFox News host says it's not 'wholly out of character' that Trump 'might throw his lunch' after January 6 testimony on ketchup dripping down the wallFormer President Donald Trump and Fox News Chief Political Anchor Bret Baier.Brendan Smialowski / AFP via Getty ImagesMoments after a colleague referred to Tuesday's January 6 committee testimony as "stunning," Fox News host Martha MacCallum downplayed new revelations about former President Donald Trump's violent outbursts surrounding his efforts to overturn the 2020 election.Former White House aide Cassidy Hutchinson testified that Trump threw a plate in the White House dining room after he found out former Attorney General Bill Barr publicly said there was no evidence of widespread voter fraud, leaving "ketchup dripping down the wall.""I mean, I'm not sure that it really shocks anybody that the president just — knowing what we've seen, observing him over the years — if he got angry then he might throw his lunch," MacCallum said. "I'm not sure. It's obviously a very dramatic detail, and the way that she describes it, um, is. But I'm not sure if this is wholly out of character with the Donald Trump and the President Trump that people came to know over the years."READ MOREHere are all the people who sought preemptive pardons from Donald Trump after the Capitol riot, per January 6 committee witnessesRep. Marjorie Taylor Greene, R-Ga., joined from left by Rep. Louie Gohmert, R-Texas, and Rep. Matt Gaetz, R-Fla., speaks at a news conference about the treatment of people being held in the District of Columbia jail who are ch.....»»

Category: smallbizSource: nytJul 21st, 2022

Jan. 6 live: Latest hearing will focus on Trump"s actions during the deadly Capitol riot

The House select committee is investigating the Capitol riot and the role Donald Trump and his allies played in trying to overturn the 2020 election. Lawmakers listen as an image of a Trump campaign donation banner is shown behind them during a House January 6 committee hearing.Susan Walsh/AP Thursday's hearing in the Jan. 6 probe will focus on Trump's actions as his supporters stormed the Capitol. Two administration officials — national security adviser Matthew Pottinger and deputy press secretary Sarah Matthews — are expected to testify. The panel has also called for the Secret Service to turn over text messages sent around the Capitol riot on January 6, 2021. Latest hearing will focus on Trump's reaction to the Capitol riot — and his alleged inaction to stop it.Former President Donald Trump gives the keynote address at the Faith and Freedom Coalition during their annual conference on June 17, 2022, in Nashville, Tennessee.Seth Herald/Getty ImagesThe House panel investigating the Capitol riot on January 6, 2021 will hold its eighth hearing on Thursday night.The hearing — scheduled to start at 8 p.m. ET — will focus on Trump's actions during the deadly insurrection at the Capitol building.Committee members have argued that Trump knew of the violence and refused to take actions to prevent or stop it, despite the pleas from advisors in his inner circle.Former national security adviser Matthew Pottinger and Sarah Matthews, former deputy press secretary in the Trump administration, are expected to testify.Trump spent most of the January 6 attack watching TV in the White House dining room: new videoFormer President Donald Trump speaks during a "Save America" rally in Anchorage, Alaska, on July 9, 2022.Justin Sullivan/Getty ImagesTrump spent the bulk of his time during the Capitol attack watching reports of the insurrection on TV, according to video testimony given to the January 6 House panel.Ahead of Thursday night's hearing on how Trump reacted to the storming of the Capitol, Rep. Adam Kinzinger, R-Ill., a member of the House Select Committee, shared a video compilation of the depositions on Twitter.—Adam Kinzinger (@RepKinzinger) July 21, 2022Read Full StorySecret Service may have violated federal law by deleting messages around January 6The leaders of the January 6 hearings say the Secret Service may have violated federal law by undergoing a process that led to text messages from the time of the Captiol riot to be deleted."The procedure for preserving content prior to this purge appears to have been contrary to federal records retention requirements and may represent a possible violation of the Federal Records Act," a letter from Reps. Bennie Thompson and Liz Cheney said.So far, the committee had received one text message from the agency.Jan. 6 hearings are 'undoubtedly starting to take a toll' on Trump's popularity, former ambassador saysFormer White House counsel Pat Cipollone is seen on a video display during the seventh hearing held by the Select Committee to Investigate the January 6th Attack on the U.S. Capitol on July 12, 2022.Sarah Silbiger-Pool/Getty ImagesA former ambassador who served during the Trump administration says the former president's popularity is taking a hit as more revelations about Trump's actions before and during the Capitol riot come out.Attorney Randy Evans, who was ambassador to Luxembourg, said the hearings' "steadiness, the repetitiveness, has had a corrosive effect."Evans added it's "all undoubtedly starting to take a toll — how much, I don't know. But the bigger question is whether it starts to eat through the Teflon. There are some signs that maybe it has. But it's too early to say right now."Read MoreSecret Service has only submitted 1 text to the Jan. 6 committee: panel memberThe House panel investigating the Capitol riot has received just one text message from the Secret Service in response to a subpoena, Rep. Zoe Lofgren said."In their letter they gave no indication that they have secured the phones in question and done some forensic work with them. That's something we want to know," Lofgren told MSNBC on Tuesday."Obviously, this doesn't look good ... Coincidences can happen but we really need to get to the bottom of this and get a lot more information than we have currently."Read Full StoryJan. 6 panel subpoenas Secret Service for text messages as DHS watchdog accuses agents of deleting them after being askedA US Secret Service agent takes position outside the White House in November 2020.J. Scott Applewhite/AP PhotoThe House committee investigating the Capitol riot has issued a subpoena to the US Secret Service after the Department of Homeland Security inspector general accused the agency of deleting text messages after being asked.Rep. Bennie Thompson, the committee's chairperson, said in a Friday letter to Secret Service director James Murray that the panel was seeking text messages from January 5 and 6, 2021.Thompson mentioned three previous requests for information, sent in January, March, and August of last year, pertaining to all communications between DHS officials and then-President Donald Trump about the Capitol riot.Read Full StoryThe Jan. 6 witness Trump tried to call is a White House support staffer, reports sayThe Jan. 6 committee witness whom former President Donald Trump is alleged to have tried to contact is a White House support staffer, reports say. At Tuesday's hearing, committee member Rep. Liz Cheney claimed that Trump sought to contact a witness who had not appeared publically, in what she characterized as a form of witness tampering. CNN first reported, citing two sources, that Trump made the call to the witness after the June 28 testimony by another witness, the former White House staffer Cassidy Hutchinson.According to the report, the support staffer was in a position to corroborate parts of Hutchinson's testimony, and had been providing evidence to the committee. NBC News later said it had confirmed CNN's reporting. Neither outlet named the person.Read Full StoryWatergate star witness predicts criminal charges after latest Jan. 6 testimony: 'Trump is in trouble'Former White House Counsel John Dean testifying on Capitol Hill on June 10, 2019.SAUL LOEB/AFP via Getty ImagesJohn Dean, a key witness in the Watergate investigation, said that former President Donald Trump and others will likely face legal repercussions from evidence presented at Tuesday's January 6 committee hearing. In an interview with CNN, Dean highlighted testimony by former members of extremist group the Oath Keepers, who were part of the mob that stormed the Capitol.Dean described them as "really classic authoritarian followers, following the leader."He argued that the testimony proves the extent to which the rioters believed they had been sent by Trump, which he said could be used by prosecutors were they to bring charges against the former president.Read Full StoryTrump 'liked the crazies' and wanted Alex Jones and Ali Alexander as Jan. 6 rally speakers despite red flags raised, former spokesperson saysKatrina Pierson, a former campaign spokesperson for Donald Trump and one of the organizers of the January 6 "Stop the Steal" rally, said Trump wanted Alex Jones and Ali Alexander to speak at the event despite the "red flags" they raised.On Tuesday, Rep. Stephanie Murphy, a member of the House select committee investigating the Capitol riot, played a video of Pierson's testimony to the panel in which Pierson commented on Trump's love for "crazies" like Jones and Alexander."Yes, I was talking about President Trump. He loved people who viciously defended him in public," Pierson said in her deposition.Read Full StoryPhoto shows Mark Meadows escorting Rudy Giuliani from the White House following 'UNHINGED' West Wing meeting about 2020 election resultsA photo that Cassidy Hutchinson took of Mark Meadows leading Rudy Giuliani away from the Oval Office.Courtesy of CSPANFormer Trump White House chief of staff Mark Meadows had to escort former Trump lawyer Rudy Giuliani from the Oval Office following a chaotic, late-night December 2020 West Wing meeting about the election results, according to new January 6 testimony.Cassidy Hutchinson, the former Trump White House aide whose explosive testimony stunned Washington last month, shared with the House Select Committee investigating the Capitol riot a photo she took of Meadows leading  Giuliani away from the Oval Office following the turbulent gathering, which was the site of a face-off between Trump's legal allies and White House lawyers over efforts to promote the then-president's baseless claims of election fraud, according to testimony.The January 6 panel shared the photo alongside real-time text messages Hutchinson was sending from the meeting during its seventh live hearing on Tuesday. READ FULL STORYFormer Twitter employee feared people were going to die on January 6A former Twitter employee told the House committee investigating the attack on the US Capitol that activity on the platform raised concerns that there would be deadly violence in Washington on January 6.The former employee, whose voice was obscured in a recording played during Tuesday's hearing, testified about trying and failing to get the company to intervene as former President Donald Trump's extremist supporters used the platform to repeat his statements about the upcoming protests to the 2020 election results.On the night of January 5, the employee testified about slacking a colleague, a message to the effect of, "When people are shooting each other tomorrow, I will try and rest in the knowledge that we tried."The former employee was on a team responsible for platform and content moderation policies during 2020 and 2021.READ FULL STORYOath Keepers attorney used the 'Queer Eye' loft kitchen from Season 3 as her video background before the January 6 committeeOath Keepers attorney Kellye SoRelle.C-SPANTestifying remotely before the House Select Committee investigating the January 6 insurrection, the Oath Keepers' attorney and acting president used a green screen background from the Netflix show "Queer Eye."Erin Ryan, host of Crooked Media's "Hysteria" podcast, tweeted out a screenshot of the remote deposition from Oath Keepers acting president Kellye SoRelle alongside an image from the third season of the streaming series, which Ryan said she found from a reverse Google image search.READ FULL STORYRep. Liz Cheney ends hearing with bombshell: Donald Trump called a witness in the House January 6 investigationFormer President Donald Trump called a witness in the congressional inquiry into the January 6, 2021 attack on the Capitol, Rep. Liz Cheney said Tuesday, prompting House investigators to notify the Justice Department. "After our last hearing, President Trump tried to call a witness in our investigation. A witness you have not yet seen in these hearings. That person declined to answer or respond to President Trump's call and, instead, alerted their lawyer to the call," said Cheney, a Wyoming Republican, in a bombshell revelation that concluded the House January 6 committee's seventh public hearing."Their lawyer alerted us, and this committee has supplied that information to the Department of Justice," she added. "Let me say one more time: We will take any effort to influence witness testimony very seriously."READ FULL STORYThe January 6 investigators obtained a video of Roger Stone reciting the Proud Boys' 'Fraternity Creed,' the first step for initiation to the extremist groupAn image of Roger Stone is shown on a screen as the House select committee investigating the Jan. 6 attack on the U.S. Capitol holds a hearing at the Capitol in Washington, Tuesday, July 12, 2022.Doug Mills/Pool via APNew details emerged at Tuesday's January 6 committee hearing on the close ties between Roger Stone and extremist groups, including that the longtime Donald Trump confidante was recorded reciting the Proud Boys' so-called "Fraternity Creed." Rep. Jamie Raskin, who co-chaired the public hearing, described reciting the creed as "the first level of initiation" into the far-right group, five members of which are scheduled to be tried on seditious conspiracy charges in December.  "Stone's ties to the Proud Boys go back many years," Raskin said. "He's even taken their so-called "Fraternity Creed," required for the first level of initiation to the group."Video then played showing Stone in a crowded outdoor setting, saying, "Hi, I'm Roger Stone. I'm a Western chauvinist, and I refuse to apologize for the creation of the modern world." READ FULL STORYTrump planned to call on his supporters to march to the Capitol on January 6, according to a draft tweetThe House committee investigating the Capitol riot on Tuesday revealed a draft tweet in which President Donald Trump called on his supporters to go to the US Capitol after his speech on January 6, 2021."I will be making a Big Speech at 10AM on January 6th at the Ellipse (South of the White House). Please arrive early, massive crowds expected. March to the Capitol after. Stop the Steal!!" Trump wrote in the draft tweet, which is undated.Trump never sent the tweet, but its existence, along with other messages exchanged between rally organizers, offer proof that the march to the Capitol was premeditated, the January 6 committee said.Democratic Rep. Stephanie Murphy of Florida presented the evidence during Tuesday's hearing, and said: "The evidence confirms that this was not a spontaneous call to action, but rather it was a deliberate strategy decided upon in advance by the president."READ FULL STORYTrump's ex-campaign manger Brad Parscale said in private texts that Trump is to blame for Capitol rioter's deathIn a series of texts revealed at the 7th hearing of the House select committee investigating the January 6 insurrection, President Donald Trump's former campaign manger Brad Parscale suggested in a message to former Trump campaign spokeswoman Katrina Pierson that Trump's words led to the death of a capitol rioter.Messages show Pierson tried to push back, writing that "it wasn't the rhetoric.""Katrina," Parscale wrote back. "Yes it was."Read Full StoryPat Cipollone suggested Pence should get the Presidential Medal of Freedom for refusing to block the Electoral Collage count certificationA video of Pat Cipollone, former White House counsel, is shown as the House select committee investigating the Jan. 6 attack on the U.S. Capitol holds a hearing at the Capitol in Washington, Tuesday, July 12, 2022.Doug Mills/Pool via AP"I think the vice president did the right thing, I think he did the courageous thing," Cipollone said in testimony revealed at the House January 6 committee's seventh public hearing on Tuesday. "I have a great deal of respect for Vice President Pence."Cipollone added that he didn't think Pence had any "legal authority" to do anything other than refuse to give into President Donald Trump's pressure campaign and interfere with the Electoral College certification on January 6, 2021.Read Full Story  11 House Republicans met with Trump to strategize overturning the election results on January 6, and 5 of them later asked for pardonsAccording to Democratic Rep. Stephanie Murphy of Florida, a member of the January 6 committee, several Republicans met at the White House on December 21, 2020, as part of an effort to "disseminate his false claims and to encourage members of the public to fight the outcome on January 6."Vice President Mike Pence, White House Chief of Staff Mark Meadows, and Rudy Giuliani were all at the meeting, along with President Donald Trump.According to White House visitor logs, Rep. Brian Babin of Texas, Rep. Andy Biggs of Arizona, Rep. Matt Gaetz of Florida, Rep. Louie Gohmert of Texas, Rep. Paul Gosar of Florida, Rep. Andy Harris of Maryland, Rep. Jody Hice of Georgia, Rep. Jim Jordan of Ohio, Rep. Scott Perry of Pennsylvania, and Rep-elect Marjorie Taylor Greene of Georgia all attended the meeting.Read Full StoryFormer Twitter employee tells January 6 committee that Trump received special treatment from TwitterAn evidence tweet is shown on a screen during a full committee hearing on "the January 6th Investigation," on Capitol Hill on July 12, 2022, in Washington, DC. - The House committee probing the 2021 assault on the US Capitol is examining connections between associates of former US President Donald Trump and far right-wing extremist groups at its seventh hearing on Tuesday.SAUL LOEB/AFP via Getty Images"I believe that Twitter relished in the knowledge that they were also the favorite and most used service of the former president and enjoyed having that sort of power within the social media ecosystem," the former Twitter employee told investigators in testimony aired in Tuesday's hearing of the congressional committee investigating January 6.The employee, whose identity was kept secret, was introduced by Rep. Jamie Raskin as having worked on Twitter's content moderation team from 2020 to 2021.Read Full StoryCassidy Hutchinson texted a fellow White House aide 'the west wing is UNHINGED' as Oval Office meeting almost devolved into a brawlCassidy Hutchinson, a top former aide to Trump White House Chief of Staff Mark Meadows, testifies during the sixth hearing by the House Select Committee on the January 6th insurrection in the Cannon House Office Building on June 28, 2022 in Washington, DC.Andrew Harnik-Pool/Getty ImagesAccording to messages released by the House January 6 committee, Hutchinson texted the message to another top aide, Anthony Ornato.It was sent amid the scene of a December 2020 Oval Office meeting as Trump attorney Sidney Powell and White House lawyers clashed over efforts to push Trump's debunked election fraud claims. Read Full Story Former White House counsel Pat Cipollone 'set a new land speed record' trying to break up a meeting between Trump, Michael Flynn, and Overstock's CEO, Sidney Powell saidDemocratic Rep. Jamie Raskin of Maryland, one of the committee members leading Tuesday's January 6 hearing, said former President Donald Trump, election lawyer Sidney Powell, former National Security Advisor Michael Flynn, and Patrick Byrne, the CEO of Overstock.com, had met to discuss an ongoing effort to reverse the results of the 2020 election.Powell told investigators in previously recorded testimony, however, that the group had "probably no more than 10 or 15 minutes" with Trump before Pat Cipollone, then the White House Counsel, intercepted the meeting."I bet Pat Cipollone set a new land speed record," Powell quipped.Rep. Jamie Raskin says the 'oldest domestic enemy' of US democracy' is 'whipping up mob violence to destroy fair elections'Vice Chair Liz Cheney, R-Wyo., left, listens as Rep. Jamie Raskin, D-Md., speaks as the House select committee investigating the Jan. 6 attack on the U.S. Capitol holds a hearing at the Capitol in Washington, Tuesday, July 12, 2022.AP Photo/J. Scott Applewhite"The problem of politicians whipping up mob violence to destroy fair elections is the oldest domestic enemy of constitutional democracy in America," Raskin said in his opening statement during Tuesday's January 6 hearing.He mentioned a time during Abraham Lincoln's presidency, when an 1837 racist mob in Alton, Illinois, during which rioters broke into an abolitionist newspaper's office and murdered the paper's editor, Elijah Lovejoy."If racist mobs are encouraged by politicians to rampage and terrorize, Lincoln said, they will violate the rights of other citizens and quickly destroy the bonds of social trust necessary for democracy to work," Raskin said.Read Full StoryConvicted Capitol rioter testifying in front of the committee warned that a 'Civil War will ensue' if Trump got robbed in 2020Stephen Ayres, who pleaded guilty last month to disorderly conduct in connection to the January 6, 2021, Capitol riot, is set to testify in from to the House committee investigating the January 6 attack.His testimony is expected to underscore how Trump summoned supporters to Washington DC on the day Congress was scheduled to certify the results of the 2020 presidential election.On December 26, 2020, Ayres posted to Twitter: "If the [deep state] robs president Trump!!! Civil War will ensue!" It was posted days after Trump called for a "big protest" in his own tweet.Read Full StoryEx-White House counsel Pat Cipollone was against Trump naming Sidney Powell special counselA video of former White House counsel Pat Cipollone is shown as the House select committee investigating the Jan. 6 attack on the U.S. Capitol holds a hearing at the Capitol in Washington, Tuesday, July 12, 2022.AP Photo/J. Scott ApplewhiteIn previously unseen footage from his deposition to the House Select Committee last Friday, Cipollone spoke about Powell being Trump's pick to be special counsel for the Department of Justice to investigate repeatedly disproven wide spread voter fraud in the 2020 presidential election."I was vehemently opposed," Cipollone said when asked about Powell being made special counsel. "I didn't think she should've been appointed to anything."Read Full StoryRep. Jamie Raskin says Trump 'electrified and galvanized' his extremist supporters with a tweet calling for a 'big protest'Jamie Raskin listens as the House select committee investigating the Jan. 6 attack on the U.S. Capitol holds a hearing at the Capitol in Washington, Tuesday, July 12, 2022.AP Photo/J. Scott ApplewhiteRaskin, a Maryland Democrat, referenced a December 19, 2020, tweet from Trump during the House's January 6 committee hearing on Tuesday."Big protest in D.C. on January 6th," Trump's tweet said. "Be there, will be wild!" Raskin said that Trump's tweet spurred on "the dangerous extremists in the Oathkeepers, the Proud Boys and other racist and white nationalist groups spoiling for a fight against the government.""Here were thousands of enraged Trump followers, thoroughly convinced by the Big Lie who traveled from across the country to join Trump's wild rally to 'stop the steal,'" he added. "With the proper incitement by political leaders, and the proper instigation from the extremists, many members of this crowd could be led to storm the Capitol, confront the vice president in Congress and try to overturn the 2020 election results."Read Full Story  Ivanka Trump told the House January 6 committee that she believed her father lost re-election 'probably prior' to a formal Electoral Collage vote in December 2020Ivanka Trump.Drew Angerer/Getty ImagesIvanka Trump told the House January 6 committee that she believed her father lost the 2020 presidential election likely before a formal Electoral College vote on December 14, 2020."Was that an important day for you? Did that affect your planning or your realization as to whether or not there was going to be an end to this administration?" an attorney for the committee asked Ivanka Trump in video taped testimony."I think it was my sentiment, probably prior as well," Ivanka Trump said in response.Read Full StoryPat Cipollone's testimony 'met our expectations," Cheney saysFormer White House Counsel Pat Cipollone.Jabin Botsford/The Washington Post via Getty ImagesJanuary 6 committee vice chair and Republican Rep. Liz Cheney said former White House Counsel Pat Cipollone testified before the panel — and that his testimony "met our expectations."The House committee then aired several clips of Cipollone's sworn testimony at the start of their seventh hearing on Tuesday.Cipollone told the January 6 committee that he agreed Trump should concede the 2020 election and that he lost to Democratic nominee Joe Biden fair and square.  Read Full StoryCheney: Trump is 'not an impressionable child'GOP Rep. Liz CheneyAP Photo/ Andrew Harnik)GOP Rep. Liz Cheney pushed back on excuses for former President Donald Trump's actions during the Capitol riot, saying he was not simply misled about his election lies but knew they were false."President Trump is a 76-year-old man," Cheney said as the January 6 committee began its hearing on Tuesday. "He is not an impressionable child. Just like everyone else in our country, he is responsible for his own actions and his own choices."Cheney said evidence shows Trump was warned "over and over" that there was no sign of widespread election fraud."No rational or sane man in his position could disregard that information and reach the opposite conclusion," she said, "and Donald Trump cannot escape responsibility by being willfully blind."Read Full StoryJan. 6 committee's next hearing expected to link Trump even more closely to the Capitol attackLawmakers on the House January 6 committee will air the inquiry's findings during a public hearing Thursday.Kent Nishimura / Los Angeles Times via Getty ImagesFrom its very first hearing, the House committee investigating the January 6, 2021, attack on the Capitol made a point of connecting former President Donald Trump to the violence of that day.A month later, the House panel is poised to delve even deeper. At its next public hearing, set for 1 p.m. ET Tuesday, the committee is expected to focus on how the violent pro-Trump mob coalesced on January 6 and the involvement of far-right groups, including the Proud Boys and the Oath Keepers.Committee aides said Monday during a background call with reporters that the panel's seventh hearing would underscore how a single tweet from Trump mobilized his supporters, proving a "pivotal moment that spurred a chain of events, including pre-planning by Proud Boys.""Big protest in D.C. on January 6th," Trump tweeted on December 19, 2020. "Be there, will be wild!"READ FULL STORYCassidy Hutchinson's testimony jolted the DOJ into focusing on Trump in its Jan 6 investigation, report saysCassidy Hutchinson testifying before the Jan. 6 committee on June 28, 2022.Jacquelyn Martin/AP PhotoTestimony by Jan. 6 witness Cassidy Hutchinson sparked debate among top Justice Department officials about Donald Trump's potential criminal culpability for the Capitol riot, The New York Times reported. The June 28 testimony by the former White House aide prompted officials to discuss Trump's actions on January 6, 2021, and questions about potential legal ramifications for the former president, sources told The Times. Present at some of the discussions were Attorney General Merrick Garland, and Deputy Attorney General Lisa Monaco, the report said. Read Full StoryCassidy Hutchinson and Rep. Liz Cheney have forged an 'unlikely bond' amid January 6 testimony process, per reportCassidy Hutchinson, the former Trump White House aide whose explosive January 6 testimony stunned Washington last month, has found a friend and ally in Rep. Liz Cheney, the Wyoming Republican who has been ostracized from the GOP for criticizing the former president and serving as vice-chair on the House Select Committee investigating the January 6 Capitol riot, according to The New York Times.The two Republican women — both on the outs with the party's overwhelming Trump faction — have developed an unlikely bond in recent weeks as the January 6 panel riot zeroes in on increasingly damning testimony against former President Donald Trump.The congresswomen admires Hutchinson's dedication to country over personal power, according to The Times. "I have been incredibly moved by young women that I have met and that have come forward to testify in the Jan. 6 committee," Cheney said in a recent speech at the Reagan Library.Read Full Story A bad day for Steve BannonSteve Bannon asked to delay his mid-July trial by at least three months.Kevin Dietsch/Getty ImagesMonday was not a good day in court for Steve Bannon.The former Trump aide lost on several key pre-trial motions ahead of his upcoming July 18 federal trial on contempt of Congress charges.U.S. District Court Judge Carl Nichols, a Trump appointee, ruled from the bench that Bannon's defense attorneys couldn't use several of their planned arguments. Nichols also denied Bannon's bid to have the trial date delayed.Insider's Ryan Barber was at the courthouse in Washington, DC, and has more in his dispatch linked below. Read Full Story'That mob on the Mall'An Oath Keeper from Idaho in Bozeman, Montana.William Campbell/Corbis via Getty ImagesWe've got a handy preview for you on Tuesday's next big House January 6 hearing, which will focus on the right-wing extremist groups that in the words of Rep. Adam Schiff helped lead "that mob on the Mall." Laura Italiano breaks down the five potential bombshells she'll be looking out for when the panel convenes at 1 pm. Check out what those are here:Read Full Story The most shocking revelations from the January 6 committee's first hearings on the Capitol attackCassidy Hutchinson, former aide to Trump White House chief of staff Mark Meadows, testifies as the House select committee investigating the Jan. 6 attack on the U.S. Capitol continues to reveal its findings of a year-long investigation, at the Capitol in Washington, Tuesday, June 28, 2022.Jacquelyn Martin/AP PhotoThe next January 6 committee hearing is scheduled for July 12, at 10 a.m. ET.Catch up on the biggest revelations from the public hearings thus far.Read Full StoryTeasing new witnesses, Rep. Adam Kinzinger says of Trump and his allies: 'They're all scared. They should be.'Rep. Adam Kinzinger (R-IL).Andrew Harnik-Pool/Getty ImagesIn a series of Sunday tweets, Rep. Adam Kinzinger said Donald Trump and his allies, including House Minority Leader Kevin McCarthy, are "scared" following last week's testimony by Cassidy Hutchinson before the Jan. 6 select committee. "This BIPARTISAN committee has been able to find out things that up until recently were denied by the Jan 6th truthers, so they are left with trying to discredit a young woman with more courage than they could muster in a lifetime. Except… that isn't working," Kinzinger tweeted."Cassidy doesn't seek the limelight, but she is compelled with honor. She didn't even have to swear an oath to the constitution like Kevin, Elise, Kristi Noem and others did. But she volunteered to come under oath to tell what she knows. She is a better person than them all. "Read Full StoryLiz Cheney says the January 6 panel won't 'stand by' and let 'men who are claiming executive privilege' attack Cassidy Hutchinson's characterCassidy Hutchinson, a top former aide to Trump White House Chief of Staff Mark Meadows, arrives to testify during the sixth hearing by the House Select Committee on the January 6th insurrection in the Cannon House Office Building in Washington, DC, on June 28, 2022.Anna Moneymaker/Getty ImagesRep. Liz Cheney in an interview that aired on Sunday reaffirmed her confidence in former Trump White House aide Cassidy Hutchinson's testimony and said that the House panel investigating the January 6, 2021, riot at the Capitol wouldn't sit by idly and let her endure anonymous attacks.While sitting down with ABC News chief Washington correspondent Jonathan Karl at the Ronald Reagan Presidential Library in Simi Valley, Calif., the Wyoming Republican expressed confidence in Hutchinson and the credibility of future hearings."What Cassidy Hutchinson did was an unbelievable example of bravery and of courage and patriotism in the face of real pressure," she said."The Committee is not going to stand by and watch her character be assassinated by anonymous sources and by men who are claiming executive privilege. And so we look forward very much to additional testimony under oath on a whole range of issues," she added.Read Full StoryKinzinger says new witnesses have been coming forward to the Jan. 6 committee since Cassidy Hutchinson's 'inspiring' testimonyRep. Adam Kinzinger of Illinois.Chip Somodevilla/Getty ImagesRep. Adam Kinzinger says that more witnesses have come forward since Cassidy Hutchinson's blockbuster testimony during the Jan 6. hearings last week.  "She's been inspiring for a lot of people," Kinzinger said Sunday on CNN's  "State of the Union." "Every day, we get new people that come forward and say, 'hey, I didn't think maybe this piece of the story that I knew was important, but now that you guys are talking' — I do see this plays in here."Hutchinson, an ex-aide to White House chief of staff Mark Meadows, revealed in front of the Jan. 6 committee shocking details of former president Donald Trump's behavior on the day of the Capitol attack, including that he attempted to grab the steering wheel of his SUV and lunged at one of his Secret Service agents, as Insider's Grace Panetta previously reported. "I mean, look, she is going to go down in history," Kinzinger said, referring to the 25-year-old. "People can forget the names of every one of us on the committee. They will not forget her name. And, by the way, she doesn't want that. She doesn't want to be out in the public spotlight."Read Full StoryLiz Cheney says the Jan. 6 committee could potentially make multiple criminal referrals, including one against TrumpU.S. Rep. Liz Cheney (R-WY) Vice Chairwoman of the Select Committee to Investigate the January 6th Attack on the U.S. Capitol, delivers remarks during a hearing on the January 6th investigation on June 9, 2022.Win McNamee/Getty ImagesRep. Liz Cheney in an interview broadcast on Sunday said that the House committee investigating the January 6, 2021, riot at the Capitol could potentially make multiple criminal referrals, including one against former President Donald Trump.During an interview on ABC's "This Week," Cheney — who serves as the vice-chair of the panel — was asked by correspondent Jonathan Karl if the work conducted by its members has shown that Trump's conduct warrants prosecution."Ultimately, the Justice Department will decide that," the Wyoming Republican said. "I think we may well as a committee have a view on that."She continued: "If you just think about it from the perspective of what kind of man knows that a mob is armed and sends the mob to attack the Capitol and further incites that mob when his own vice president is under threat — when the Congress is under threat? It's just very chilling. And I think certainly we will continue to present to the American people what we've found."Read Full StoryDOJ wants a DC judge to reject Steve Bannon's request to delay his contempt-of-Congress trial over January 6 hearings' publicity, saying that he has 'barely been mentioned'Steve Bannon argued in April that his criminal prosecution should be dismissed.Tom Williams/CQ-Roll Call, Inc via Getty ImagesThe Department of Justice asked a DC judge on Friday to reject Trump ally Steve Bannon's request to delay his contempt-of-Congress trial, arguing that the January 6 hearings have not revolved around him to the point of distraction.On Wednesday, Bannon's lawyers asked a DC judge to delay his July 18 trial, citing a "media blitz" from the public January 6 committee hearings and saying the request was "due to the unprecedented level of prejudicial pretrial publicity."DOJ lawyers said that Bannon is not as popular as he thinks he is."The Defendant's motion gives the false impression — through general statistics about the volume of viewership of the Committee's hearings and overall media coverage of the Committee's hearings — that all of the Committee's hearings and the attendant media coverage is about him," DOJ lawyers wrote in a filing on Friday. "The truth is just the opposite — the Defendant has barely been mentioned in the Committee's hearings or the resulting media coverage of them."Read More2 Secret Service sources told CNN that Trump angrily demanded to be taken to the Capitol on January 6, partly confirming Cassidy Hutchinson's explosive testimonyFormer President Donald Trump.SAUL LOEB/AFP via Getty ImagesTwo Secret Service sources told CNN on Friday that they heard about former President Donald Trump lunging at the driver of his presidential SUV on January 6, 2021.The pair of sources, who spoke under the condition of anonymity, backed up much of former Trump aide Cassidy Hutchinson's explosive testimony on the altercation in the motorcade vehicle known as "the Beast" after Trump found out he wouldn't be driven to join his supporters at the Capitol."He had sort of lunged forward – it was unclear from the conversations I had that he actually made physical contact, but he might have. I don't know," one of the Secret Service sources told CNN. "Nobody said Trump assaulted him; they said he tried to lunge over the seat – for what reason, nobody had any idea."Read Full StoryMichael Cohen says Trump uses a 'mob boss' playbookMichael Cohen, Donald Trump's former personal attorney, compared the former president to a "mob boss" amid allegations that Trump allies sought to intimidate Jan. 6 witnesses."Donald Trump never changes his playbook," Cohen told The Washington Post. "He behaves like a mob boss, and these messages are fashioned in that style. Giving an order without giving the order. No fingerprints attached."Read Full StoryTrump allies paid legal fees for multiple Jan. 6 witnesses, including Cassidy Hutchinson, sparking witness-influencing concerns, report saysCassidy Hutchinson, a former top aide to Trump White House Chief of Staff Mark Meadows, testifies before the January 6 committee in Washington, DC, on June 28, 2022.Brandon Bell/Getty ImagesFormer President Donald Trump's allies and supporters paid the legal fees for multiple people who had provided testimony to the January 6 committee, including the former White House aide Cassidy Hutchinson, The New York Times reported.Hutchinson eventually fired the lawyer who was paid for a pro-Trump group, and went on to provide damning testimony about Trump, the report said. Two sources familiar with the committee told The Times that they believe Hutchinson's decision to part ways with the lawyer — who had been recommended by Trump allies and paid for by a pro-Trump PAC — likely played a role in her decision to provide new evidence. There are no laws against a third party paying for a witness' legal representation in a congressional inquiry, but the situation may raise some ethical concerns, according to the report.Read Full StoryFormer Secret Service agent said he, too, would have defied Trump's request to be taken to the Capitol on January 6Former President Donald Trump and former Vice President Mike Pence.PhoPhoto by Brendan Smialowski / AFP via Getty ImagesFormer Secret Service agent Jonathan Wackrow said in an op-ed that he also would not have taken then-President Donald Trump to the Capitol on January 6, 2021.In an op-ed published by Newsweek, Wackrow said he was shocked by Cassidy Hutchinson's testimony to the January committee regarding Trump's actions on the day of the Capitol riot. Hutchinson, a former aide in the Trump White House, claimed that Trump had gotten into a physical altercation with the head of his security detail while demanding to be brought to the Capitol."If I had been working on Trump's security detail on January 6, I would have made the same decision as Secret Service Special Agent in Charge Robert Engel to not go to the Capitol based on the known escalating threats," Wackrow wrote.He added, however, that he believed Trump still respects the Secret Service because he probably has seen "first-hand what they're willing to do to protect him and his family." Read Full StoryGOP Rep. Adam Kinzinger says Cassidy Hutchinson is a 'hero' and has 'more courage than most' Republicans after January 6 testimonyCassidy Hutchinson testifies during the sixth hearing by the House Select Committee on the January 6th insurrection.Andrew Harnik-Pool/Getty ImagesGOP Rep. Adam Kinzinger of Illinois on Thursday applauded Cassidy Hutchinson for her testimony to the January 6 committee, saying the former top aide to White House chief of staff Mark Meadows has "more courage" than most of his Republican colleagues. "Cassidy Hutchinson is a hero and a real patriot (not a faux 'patriot' that hates America so much they would attempt a coup.)," Kinzinger, one of two Republicans on the House committee investigating the January 6 insurrection, said in a tweet."Of course they will try to bully and intimidate her. But she isn't intimidated. More courage than most in GOP," Kinzinger added of Hutchinson.Read Full StoryGOP Sen. Pat Toomey says Trump's chances of winning the party's 2024 presidential nomination are 'much more tenuous' following the January 6 committee's hearingsRepublican Sen. Pat Toomey of Pennsylvania at the White House with Trump in February 2018.AP Photo/Evan VucciRepublican Sen. Pat Toomey of Pennsylvania suggested Thursday that public hearings from the House select committee investigating January 6, 2021, had damaged former President Donald Trump politically, even among Republicans.At the end of a wide-ranging interview with Bloomberg that focused on the Supreme Court's recent ruling on the Environmental Protection Agency and the Federal Reserve's approach to tackling inflation, the retiring lawmaker was asked whether he believed the hearings would preclude Trump from seeking a second term as president in 2024."I don't know that it means that. I mean he gets to decide whether he's going to run," said Toomey, who was one of seven Republican senators who voted to convict Trump on a charge of incitement of an insurrection after the Capitol riot."Look, I think he disqualified himself from serving in public office by virtue of his post-election behavior, especially leading right up to January 6," Toomey said. "I think the revelations from this committee make his path to even the Republican nomination much more tenuous."Read Full StoryCheney 'absolutely confident' that former White House aide's explosive testimony is credibleRepublican Rep. Liz Cheney of Wyoming, vice-chair of the select committee investigating the January 6 attack on the Capitol, speaks during a business meeting on Capitol Hill on December 13, 2021 in Washington, DC.Anna Moneymaker/Getty ImagesRepublican Rep. Liz Cheney, who serves as vice-chair of the House's January 6 committee, said she is "absolutely confident" that a former White House aide's damning testimony is accurate."I am absolutely confident in her credibility. I'm confident in her testimony," Cheney told ABC News's Jonathan Karl about the allegations made by top Trump White House aide Cassidy Hutchinson this week.Cheney said that Hutchinson showed "an unbelievable example of bravery and of courage" by testifying.Read MoreBannon wants his contempt trial to be delayed because of Jan. 6 hearingsSteve Bannon outside of the E. Barrett Prettyman U.S. Courthouse on June 15, 2022 in Washington, DC.Kevin Dietsch/Getty ImagesTrump ally Steve Bannon has asked for his contempt-of-Congress trial to be delayed because the hearings on the Capitol riot are getting so much publicity.A federal grand jury indicted Bannon in November 2021 on two counts of contempt of Congress after he refused to comply with a subpoena from the House committee investigating the Capitol riot.In a Wednesday court filing, Bannon's lawyers argued that the coverage of the committee's hearings would make his trial unfair.Read More January 6 panel subpoenas former White House counsel Pat CipolloneFormer White House Counsel Pat Cipollone said he would testify about Jeffrey Clark, a DOJ official who outlined ways for Trump to challenge the 2020 election.Alex Wong/Getty ImagesThe House's panel investigating the Capitol riot on January 6, 2021, has subpoenaed former White House counsel Pat Cipollone.The demand for Cipollone to appear before the committee comes after explosive testimony from a former top White House aide in the Trump administration, who described Trump and his inner circle's actions before and during the insurrection.Read Full StoryFormer Secret Service agent says Trump's 'girth' would have made it impossible to attack driverOutgoing US President Donald Trump waves as he boards Marine One at the White House in Washington, DC, on January 20, 2021.MANDEL NGAN/AFP via Getty ImagesA former White House aide testified that former President Donald Trump grabbed the steering wheel of his SUV and lunged at a Secret Service agent on January 6, 2021, after they refused to take him to the Capitol building.But former Secret Service agents told Insider they have doubts about the story."Trump's not a little guy, right? And the space to actually be able to lunge towards the wheel is not that big," one former agent said, speaking on background to Insider.  "I don't mean to sound disparaging to the former president, but just his girth would prevent him from actually getting to the steering wheel."Keep ReadingHouse Republican who led rioter on tour before insurrection could oversee Capitol policeRep. Barry LoudermilkBill Clark/CQ-Roll Call via Getty ImagesRepublican Rep. Barry Loudermilk — who led a Capitol rioter on a tour of the building the day before the insurrection — could end up overseeing Capitol police.If Republicans regain control of the House, Loudermilk would be next in line to lead the committee that has oversight over the police force attacked by Trump supporters on January 6, 2021.Loudermilk has faced backlash from Democrats after video showed him taking a group on a tour of the Capitol building, showing them hallways, security areas, and stairwells. The next day, members of the tour flaunted a sharpened flagpole bearing the American flag as they marched near the Capitol.It remains unclear whether the group entered the Capitol building itself during the riot.Read Full Story Former Jan. 6 committee investigator announces run for SenateSenior investigative counsel John Wood questions witnesses during the third public hearing of the January 6 committee on June 16, 2022.Anna Moneymaker/Getty ImagesJanuary 6 committee investigator John Wood is launching an independent Senate campaign in Missouri in an effort to stop GOP nominee Eric Greitens.Wood told the St. Louis Post-Dispatch that he believes Greitens — the former Missouri governor — is likely to win the Republican nomination, and that voters deserved an alternative.Wood, a Republican, said he will run as an independent.Read MoreTrump ally says Hutchinson's testimony was a 'campaign commercial' for Ron DeSantis in 2024Florida Gov. Ron DeSantisPhelan M. Ebenhack/AP PhotoExplosive testimony by a former Trump White House aide could be a boost to Florida Gov. Ron DeSantis to replace Trump on the presidential ticket in 2024, CNN reported.One Trump adviser said the hearings — which painted as Trump as violent and volatile — were "basically a campaign commercial" for DeSantis. Another told CNN that "no one is taking this lightly."DeSantis has flirted with larger political ambitions and is a rising Republican star who would be poised to fill the leadership vacuum if Trump is forced aside.Read Full StorySecret Service agents willing to dispute Hutchinson's claims about Trump's outburst, reports sayFormer President Donald TrumpSAUL LOEB/AFP via Getty ImagesSecret Service agents are willing to testify before the January 6 House panel to refute former White House aide Cassidy Hutchinson's claim that Trump tried to grab the steering wheel when he demanded to be taken to the Capitol on the day of the insurrection, according to multiple reports.The driver of the car and the head of Trump's security are ready to testify under oath that the former President never lunged for the wheel or physically assaulted the driver, according to CBS News.Read More Hutchinson's testimony could lead to legal trouble for Trump: reportCassidy Hutchinson, former aide to Trump White House chief of staff Mark Meadows, testifies as the House select committee investigating the Jan. 6 attack on the U.S. Capitol continues to reveal its findings of a year-long investigation, at the Capitol in Washington, Tuesday, June 28, 2022.Jacquelyn Martin/AP PhotoFormer aides to Donald Trump worry the explosive testimony by a former White House aide could put Trump in legal jeopardy, according to the New York Times."This hearing definitely gave investigators a lot to chew on," former Attorney General Bill Barr told the Times after testimony from top White House aide Cassidy Hutchinson detailed Trump's behavior on the day of the Capitol riot.Hutchinson's testimony painted Trump as a volatile man who knew his supporters were armed on January 6, 2021. Trump also demanded to be taken to the Capitol building, but his security staff refused, Hutchinson said.Mick Mulvaney, who was once Trump's White House Chief of Staff, said evidence of possible witness tampering could open his orbit up to charges.Keep Reading  Former Trump press secretary shares text that appears to show Melania Trump to condemn Capitol riot violenceMelania Trump speaks at the White House on October 09, 2019Chip Somodevilla/Getty ImagesFormer Trump Press Secretary Stephanie Grisham shared a text exchange on Tuesday that purportedly showed former First Lady Melania Trump refusing to condemn the violence during the Capitol riot. The apparent screengrab of a text exchange was between Grisham and a person named "MT." "Do you want to tweet that peaceful protests are the right of every American, but there is no place for lawlessness & violence?" read the message. "No," the person replied.Representatives for Melania Trump at Trump's post-presidential press office did not respond to a request for comment from Insider.Read Full StoryJohn Eastman drops lawsuit blocking his phone records from January 6 committeeJohn Eastman testifies before the House Ways and Means Committee hearing on Capitol Hill in Washington, Tuesday, June 4, 2013.Charles Dharapak/APIn a late Tuesday filing, John Eastman dropped a lawsuit he'd filed to prevent the Jan. 6 committee from accessing his phone records."Plaintiff brought this lawsuit primarily to protect the content of his communications, many of which are privileged," the latest filing read. "The Congressional Defendants represented in their motion to dismiss that they were not seeking the content of any of Plaintiff's communications via the subpoena they had issued to Defendant Verizon."The former Trump lawyer's phone was seized by federal agents on June 22, according to a separate suit he filed on Monday, seeking the return of his property. Of interest to investigators are call logs from Eastman's personal device, and the search warrant indicates investigators will not review any additional content from his phone without a court order. Read Full StoryTrumpworld shocked by former White House aide Cassidy Hutchinson's explosive January 6 testimony, calling it the 'most damning day' and 'insane'Cassidy Hutchinson, former aide to Trump White House chief of staff Mark Meadows, testifies as the House select committee investigating the Jan. 6 attack on the U.S. Capitol continues to reveal its findings of a year-long investigation, at the Capitol in Washington, Tuesday, June 28, 2022.Jacquelyn Martin/AP PhotoIt took six hearings for the January 6 select committee to finally break through to embattled former President Donald Trump's inner circle.Cassidy Hutchinson, a top aide to then-White House Chief of Staff Mark Meadows, testified during a surprise hearing Tuesday that Trump was determined to go to the US Capitol with his armed supporters on January 6, 2021, as Congress was certifying the election results. Hutchinson's additional revelations about that day came crashing down on Trumpworld during the two-hour hearing. Among them were that Meadows told Hutchinson "things might get real, real bad" on January 6, that Trump knew his supporters were armed when they flooded the Ellipse to attend his "Stop the Steal" rally, and that Trump said "Mike deserves it" when rioters chanted "hang Mike Pence." "Definitely most damning day of testimony," one former White House aide told Insider. READ MOREFox News host says it's not 'wholly out of character' that Trump 'might throw his lunch' after January 6 testimony on ketchup dripping down the wallFormer President Donald Trump and Fox News Chief Political Anchor Bret Baier.Brendan Smialowski / AFP via Getty ImagesMoments after a colleague referred to Tuesday's January 6 committee testimony as "stunning," Fox News host Martha MacCallum downplayed new revelations about former President Donald Trump's violent outbursts surrounding his efforts to overturn the 2020 election.Former White House aide Cassidy Hutchinson testified that Trump threw a plate in the White House dining room after he found out former Attorney General Bill Barr publicly said there was no evidence of widespread voter fraud, leaving "ketchup dripping down the wall.""I mean, I'm not sure that it really shocks anybody that the president just — knowing what we've seen, observing him over the years — if he got angry then he might throw his lunch," MacCallum said. "I'm not sure. It's obviously a very dramatic detail, and the way that she describes it, um, is. But I'm not sure if this is wholly out of character with the Donald Trump and the President Trump that people came to know over the years."READ MOREHere are all the people who sought preemptive pardons from Donald Trump after the Capitol riot, per January 6 committee witnessesRep. Marjorie Taylor Greene, R-Ga., joined from left by Rep. Louie Gohmert, R-Texas, and Rep. Matt Gaetz, R-Fla., speaks at a news conference about the treatment of people being held in the District of Columbia jail who are ch.....»»

Category: topSource: businessinsiderJul 21st, 2022