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Ford sells more shares of EV maker Rivian

Ford Motor has trimmed its stake in the electric carmaker Rivian Automotive for the second time in a week......»»

Category: topSource: foxnewsMay 14th, 2022

Warren Buffett"s Berkshire Hathaway likely took a $13 billion hit on just 6 stocks during Wednesday"s market plunge

Berkshire's stakes in Apple, Coca-Cola, American Express, Bank of America, Kraft Heinz, and Chevron tumbled in value as investors dumped equities. Warren Buffett.REUTERS/Rebecca Cook Warren Buffett's Berkshire Hathaway likely saw $13 billion wiped off its top six stocks in one day. Apple, Bank of America, American Express, Coca-Cola, Chevron, and Kraft Heinz all fell on Wednesday. Those six positions made up 80% of Berkshire's $364 billion US stock portfolio on March 31. Warren Buffett likely took a $13 billion hit across only six stocks on Wednesday, as investors dumped equities in anticipation of further interest-rate hikes, stubbornly high inflation, and a potential recession.Buffett's Berkshire Hathaway saw the value of its Apple stake tumble by $7.5 billion, as the iPhone maker's stock price dropped nearly 6%. The investor's company also saw $1.8 billion wiped off the value of its Coca-Cola holdings, as the soda giant's stock slumped 7%.Berkshire's American Express, Bank of America, Kraft Heinz, and Chevron positions plunged in value by a combined $4.1 billion, as those four stocks fell between 2.6% and 9.5% each. Overall, the company's six biggest positions shrunk in value by a combined $13.4 billion in a single day.Those calculations are based on Berkshire's latest portfolio disclosure, and assume Buffett and his team haven't altered their holdings since March 31. It's also worth emphasizing that Berkshire won't realize those declines unless it sells shares at the reduced prices.Buffett won't be too worried about his portfolio bleeding, as he famously holds for the long term, and welcomes downturns as buying opportunities. Moreover, Berkshire has still made a fortune on its core holdings; it has quadrupled its money on Apple, more than doubled its money on Bank of America, and racked up 17-fold gains on American Express and Coca-Cola.Berkshire more than quadrupled its Chevron holdings in the first quarter, and the energy stock surged by 39% in the period, lifting the value of its stake from $4.5 billion to nearly $26 billion. Yet it's tricky to gauge the company's exact gain on that position without knowing its entry point.Kraft Heinz is the only laggard; Buffett has admitted overpaying for his stake in the food-and-condiments group, which is now worth less than what he paid for it.Even if the blow to Berkshire's holdings doesn't last, the scale of Wednesday's declines underscores the remarkable concentration of the conglomerate's portfolio. Berkshire's top six positions were worth a combined $289 billion on March 31, representing 80% of its $364 billion US stock portfolio.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderMay 19th, 2022

Ford sells more shares of EV maker Rivian

Ford Motor has trimmed its stake in the electric carmaker Rivian Automotive for the second time in a week......»»

Category: topSource: foxnewsMay 14th, 2022

Twitter stock would be 37% lower in the absence of Elon Musk"s takeover bid and there"s a possibility the Tesla chief reprices the deal, short seller warns

Twitter has outperformed the Nasdaq by a wide margin since Elon Musk announced his bid, suggesting downside ahead if he walks away. Elon Musk at the 2022 Met Gala.REUTERS/Andrew Kelly Twitter's implied price is 37% lower in the absence of Elon Musk's bid, a short seller said Monday.  The Tesla chief has all of the leverage and there is a risk the proposed deal is repriced lower.  "In our view, Musk holds all the cards here," analysts at Hindenburg Research wrote. Elon Musk could reprice his takeover bid for Twitter to better reflect risks in both the broader market and the company itself, according to a Monday report from Hindenburg Research.The deal in its current form is threatened, the analysts wrote, because of several key developments in the market since Musk's initial April 14 offer, including a 17.6% dip in the Nasdaq.The Tesla CEO agreed with Twitter's board to take the social media platform private at $54.20 a share. In the absence of Musk's bid, Twitter's stock price would be about $31.40, trading roughly 37% lower than Friday's closing price, the Hindenburg analysts wrote. "Twitter has outperformed the Nasdaq by ~43% since Musk disclosed his initial position, setting the stock up for a material downside reversion should Musk walk away from the deal," the report reads. What's more, they highlighted how Twitter's weak first quarter earnings and overstated user-base suggest further downside that hasn't yet been priced in, should Musk end up walking away. "We suspect that Twitter continues to overstate its true daily active users, despite the revision," the Hindenburg Research report said. "As indicated by Musk, the platform is flooded with bots, spam, and scam accounts that likely inflate its genuine user metrics even further."The $1 billion so-called breakup fee that allows Musk to ditch the deal looms, the analysts believe. This piles more risk on top of the potential that Musk sells his 9.2% stake should the deal fall through. "Given the above collective dynamic, Musk has incredible leverage to renegotiate should he choose to," the authors wrote.Meanwhile, the report points out that the social platform's board stands to benefit from a deal even if it were repriced lower, as "the board holds virtually no stake in Twitter.""Any party rolling (or contributing) equity would prefer a lower price with lower commensurate debt, given that their equity stake will remain static regardless," the analysts wrote. While the analysts also noted the deal puts undue pressure on Tesla, given that Musk pledged over 88 million shares of the EV maker as collateral for loans, they said the board would likely agree to a repriced deal, given the present circumstances. "In our view, Musk holds all the cards here," the analysts concluded. "We agree with Elon Musk that Twitter has become the de facto public square. We also agree that the pressures of being a public company make it harder to advance the mission of Twitter serving as an open, trusted forum for diverse ideas."Twitter stock fell as much as 4% Monday, trading at roughly $48.81 as of 1:00 p.m. ET. Read the original article on Business Insider.....»»

Category: topSource: businessinsiderMay 9th, 2022

3 Great Stocks to Buy in May and Hold During the Market Selloff

Investors with long-term outlooks might consider using the current selloff and fear as a chance to buy strong stocks they plan to hold for some extended period of time. The three stocks we look at today also offer solid value, dividends, and are set to grow rather steadily in the coming years. Thursday’s bounce was short-lived with the market giving up all of its gains to end what’s been a rough April on a low note. The Nasdaq closed regular hours 4.2% lower, one day after it jumped 3%, while the S&P 500 dropped 3.6%, following Thursday’s 2.5% climb.The Nasdaq is hovering right near 52-week lows and in bear market territory, with the benchmark S&P 500 14% below its records. Many stocks are now trading beneath their pre-pandemic levels as Wall Street grapples with soaring prices and higher interest rates.  Clogged up supply chains are dragging companies and the economy, and ongoing lockdowns in major Chinese cities are likely going to make matters worse. Even companies like Amazon are feeling the pressure as revenue growth slows.The wave of selling and 10% or higher drops from market-movers and heavyweights can leave investors scared and on the sidelines. But it is not all doom and gloom. U.S. consumer spending climbed in the first quarter. Plus, S&P 500 companies are set to keep growing their revenue, earnings, and margins in 2022, 2023, and beyond. And even with rising interest rates, investors might have to look to stocks in order to outpace 40-year high inflation.Investors with long-term outlooks of years or more might consider using the current market selloff and fear as a chance to buy strong stocks they plan to hold for some extended period of time. The three stocks we look at today also offer solid value, dividends, and are set to grow rather steadily in the coming years.Valero Energy Corporation VLOValero Energy’s core business remains refining and processing crude to turn it into products such as gasoline and other petrochemical offshoots. VLO owns roughly 15 petroleum refineries in the U.S., Canada, and the U.K., with a combined throughput capacity of approximately 3.2 million barrels per day. Valero sells its products mostly in those regions, as well as Latin America. Alongside its refining segment, VLO runs a growing renewable diesel segment and an ethanol unit.Valero is set to benefit from the continued use of oil, gas, and other petrochemical products for decades to come. And its joint venture, Diamond Green Diesel, for renewable diesel could start to play a larger role. VLO is able to produce diesel fuel, which powers trucks, buses, construction equipment, and much more, from recycled animal fats, used cooking and corn oil, and more.Valero, like everyone in the oil and energy space, suffered in 2020. But VLO roared back in 2021, with revenue up 76% YoY to easily top its pre-covid levels and it swung from an adjusted quarterly loss of -$3.12 per share to +$2.81 a share. VLO then on April 26 topped our first quarter fiscal 2022 EPS estimates by 43% on the back of higher throughput volumes. Valero has now beat out EPS estimates by an average of 84% in the trailing four periods.Image Source: Zacks Investment ResearchValero is benefitting from booming oil and gas prices and its refining margins are climbing. Since its recent Q1 release, VLO’s adjusted FY22 consensus estimate surged 30% higher, with 2023 up 5%. This extends its stretch of upward revisions and helps it land a Zacks Rank #2 (Buy). Zacks estimates call for its earnings to soar 348% this year on 39% higher revenue to hit $158 billion, to blow away its 2012 and 2013 records.Valero lands “A” grades for Value, Growth, and Momentum in our Style Scores system and its Refining and Marketing segment is in the top 11% of over 250 Zacks industries. Plus, all 13 brokerage recommendations Zacks has for VLO are buys, with 12 coming in a “Strong Buys.” And VLO’s 3.40% dividend yield tops many other stocks in its industry and beats the 10-year U.S. Treasury’s 2.93%.VLO’s yield appears even stronger when you consider that its stock has climbed 125% in the last five years to outclimb the larger Oil-Energy sector’s 30% and its industry’s 55%. Valero shares have surged 680% in the past decade vs. the S&P 500’s 345%. This run includes a 53% jump in 2022 and it popped to new records following its Q1 release. Despite the huge run, VLO is trading roughly in line with where it has been for the past 10 years and near year-long lows at 12.1X forward 12-month earnings to come in right near its industry despite its outperformance. Valero also boats a solid balance sheet that’s helping it buy back tons of stock.Humana Inc. HUMHumana is a health insurance firm that offers a wide range of plans for Medicare, Medicaid, individuals, families, and employers. The company operates through three core segments: Retail, Group and Specialty, and Healthcare Services. Humana’s clinical capabilities, resources, and tools include in-home care, behavioral health, pharmacy services, data analytics, wellness solutions, and beyond.Humana has expanded its top-line at rather solid clips for the past 20 years, with only one tiny YoY decline mixed in. The company is poised to benefit from an aging U.S. population. Like Valero, Humana reported its first quarter FY22 results in the last week of April. HUM topped our Zacks EPS estimates by 18% on April 27 and the firm provided upbeat guidance.The health insurance firm has beaten the Zacks quarterly earnings estimates for five years running. Peeking ahead, Zacks estimates call for its adjusted earnings to climb another 18% in 2022 and 12% higher in 2023. Meanwhile, its revenue is set to pop 11.5% and 9%, during this same stretch.Image Source: Zacks Investment ResearchHumana lands a Zacks Rank #3 (Hold) at the moment, alongside an overall “A” VGM score. Plus, its Medical – HMOs unit is in the top 30% of over 250 Zacks industries, and it pays a dividend.Given Humana’s consistent expansion within a crucial industry in the U.S., it makes sense that Wall Street is high on the stock. At the moment, 12 of the 15 brokerage recommendations Zacks has are “Strong Buys,” with nothing below a “Hold.” Humana shares lagged the market in the past year, having moved essentially sideways. HUM matched the S&P 500 during the trailing five years. And looking back over the last decade, HUM stock has ripped 505% higher vs. the market’s 345% and the larger Medical Care Market’s 80%. On the valuation front, Humana trades at a 5% discount to its own five-year median at 18.1X forward 12-month earnings. This marks a 20% discount to its own highs and 11% vs. industry's current levels.Micron Technology, Inc. MU Micron is one of the largest makers of memory chips in the world. The company makes DRAM chips, which are featured within PCs, while NAND, or flash memory, is made for storing data and can be found in mobile phones and other devices. The memory space has been historically even more cyclical compared to the broader semiconductor market and is heavily impacted by pricing. Luckily, Micron is becoming far less cyclical as it benefits from exposure and long-term secular growth within connected vehicles, EVs, data centers, 5G, and AI.Micron's fiscal 2021 sales surged 29% and its adjusted earnings skyrocketed 115%. The firm posted solid second quarter FY22 results on March 29, topping our EPS estimate by 10%. More importantly, MU provided upbeat guidance amid the global chip shortage, as its pricing power improved across its portfolio.Micron’s FY22 consensus earnings estimate is up 7% since its last report, with FY23’s 6% stronger. The memory chip maker’s fiscal 2022 revenue is projected to climb 21% to reach $33.6 billion, with FY23 expected to surge another 18% to over $39 billion. At the bottom end, MU’s adjusted earnings are projected to soar 57% on top of last year and 22% higher in 2023.Image Source: Zacks Investment ResearchWall Street is super positive on Micron, with 14 of the 16 brokerage recommendations Zacks has at “Strong Buys.” MU, which lands a Zacks Rank #3 (Hold), grabs “A” grades for Value and Growth and a “B” for Momentum in our Style Scores system. The semiconductor power’s impressive balance sheet will help it continue to invest in growth and return value to shareholders through buybacks and dividends.MU stock is has climbed 145% in the last five years to lag the larger Zacks Semiconductor market’s 172% climb. But it has easily outpaced the group in the past 10 years, with Micron up 950% vs. 630%, which also, of course, crushed the market’s 345%. MU stock got caught up in the selling so far this year, with Micron trading 30% below its January records at roughly $68 per share at the close on Friday.Micron trades at a massive 64% discount to the larger chip segment right now. This is due, in large part, to memory’s more commodity-like standing in the space. Better still, MU is trading right around its own two-year lows and at a 75% discount to it own highs in the last few years. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention. See them now >>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 Micron Technology, Inc. (MU): Free Stock Analysis Report Valero Energy Corporation (VLO): Free Stock Analysis Report Humana Inc. (HUM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksApr 29th, 2022

Global Markets Tumble On Hawkish Central Bank Anguish, China Lockdown Fears

Global Markets Tumble On Hawkish Central Bank Anguish, China Lockdown Fears The global selloff that started in Asia, sending China's CSI300 plunging to the lowest level since May 2020, slamming the offshore yuan below 6.60 and sparking a liquidation in oil and cryptos amid fears that the Shanghai lockdown will spread to the capital Beijing and lead to an even greater slowdown in the global economy... ... has quickly spread around the globe, slamming not just European markets but US equity futures which slid as much as 1% as traders fretted over the prospects of aggressive tightening by the Federal Reserve, Chinese lockdowns and disappointing earnings. S&P 500 futures were down 0.9% as of 7:00am EDT after plunging 2.8% on Friday, while Nasdaq futures retreated 0.8%, with the rout hammering tech stocks especially hard. Some context: the Nasdaq 100 Index has erased about $1 trillion in market value since Netflix released disappointing earnings and is closing in on oversold levels; the tech-heavy FANGMAN basket has lost $2.4 trillion in market cap from 2021 ATH as Netflix and Facebook  Meta, have lost most of their gains from past 5yrs. Remember when Facebook hit the $1tn market cap club in 2021? Now it’s worth exactly half that. But now the tech bear market is finally spreading all US stocks which closed at their lowest levels in more than a month on Friday as fears over a more aggressive Federal Reserve tightening cycle led to broad-based selling. Investors are entering another busy week for big technology companies’ earnings, with Alphabet, Microsoft, Meta Platforms, Paypal and Apple all reporting results although don't expect some miraculous surge. Investor mood was already morose after Fed chair erome Powell’s hawkish comments last week hurt sentiment already sapped by the war in Ukraine, a slowdown in China and the risks inflation poses to company earnings, according to Michael Hewson, chief analyst at CMC Markets in London. “The final straw appears to be a concern about the prospect of a policy mistake by central banks, and a possible recession by the end of the year,” he said. One sole glimmer of green, Twitter shares, rose 0.6% in premarket trading after a WSJ report that Elon Musk met with the social media platform’s executives on Sunday as the company turns more receptive toward the billionaire’s $43 billion takeover offer. As discussed earlier, U.S.-listed Chinese stocks fell in premarket trading as expanded Covid lockdown measures in major Chinese cities spark concerns over the country’s growth outlook. Pinduoduo led a decline in American depositary receipts, down 4.7% in premarket trade. E-commerce peers Alibaba Group fell 3.9% and JD.com lost 2.5%. Electric carmakers including Nio and Li Auto also fell. The weakness tracks a 4.9% slump in China’s CSI 300 Index, which closed at its lowest level in two years. Here are some other notable premarket movers: U.S.-listed Chinese stocks look set to open lower on Monday as expanded Covid lockdown measures in major cities sparked concerns over the country’s economic growth outlook. Pinduoduo (PDD US) led a decline in American depositary receipts, down 4.7% in premarket trade. E-commerce peers Alibaba (BABA US) fell 3.9% and JD.com (JD US) lost 2.5%. Electric carmakers including Nio (NIO US) and Li Auto (LI US) also fell. AT&T (T US) reinstated with a buy rating at Goldman Sachs with the focus turning to the telecom giant’s core business, while the broker cuts its rating on Verizon (VZ US) on valuation grounds. AT&T up 0.6% in premarket, Verizon -1.4%. Cenntro Electric (CENN US) rises as much as 22% premarket ahead of the electric-vehicle company’s quarterly update due after the close on Monday. Kellogg (K US) was downgraded to hold from buy at Deutsche Bank, which stays cautious and below consensus ahead of 1Q22 results because of headwinds including worsening inflation and supply chain disruptions. Shares down 1.4% in premarket. Morgan Stanley says DoorDash (DASH US) is the “best executor around” among food delivery companies, but awaits a better entry point as initiates at equal-weight with Street- low $100 target. Shares down 1.1% in premarket on low volume. GoDaddy (GDDY US) upgraded to overweight at Piper Sandler on strong free cash flow potential, with the broker cutting its ratings on Wix.com (WIX US) and Squarespace (SQSP US) in a rejig of its digital presence coverage. GoDaddy little changed in premarket, Wix.com and Squarespace not traded. Coca-Cola and Activision Blizzard are among companies reporting earnings today. In Europe, markets are under heavy pressure: Euro Stoxx 50 drops as much as 2.6% with several other core indexes down over 2%. Spain’s IBEX outperforms. Miners are the weakest performers with the Stoxx 600 sector down over 5%. Energy and consumer products and services similarly lag.  Europe’s Basic Resources Index  crashed 6%, and was set for the worst daily drop since March 2020. Here are some of the biggest European movers today: Ubisoft shares rise as much as 12% after Bloomberg reported the video-game publisher is attracting takeover interest from private equity firms including Blackstone and KKR. Garanti stock rallies as much as 5.6% after parent BBVA sweetened its voluntary offer for the Turkish lender and the unit said 1Q net income tripled. Biogaia shares rise as much as 9.6% after the Swedish food-additives and supplements maker published preliminary 1Q sales figures, which included a large beat on operating profit and net sales. Barco shares rise as much as 4.2% after the projector maker’s Cinionic JV won a contract to install laser projectors in 3,500 U.S. auditoriums of cinema chain operator AMC. The Stoxx 600 Basic Resources and Energy sub- indexes both slumped on Monday amid broad declines for commodities prices on concerns that a growing Covid-19 outbreak in China will hit demand. Shell -4.5%, TotalEnergies SE -3.1%, Glencore -6.0%, Anglo American -6.5% Philips stock falls as much as 11% after publishing its latest earnings, where higher provisions related to its recall of Dreamstation breathing machines overshadowed better-than-expected 1Q sales. Roche shares fell as much as 3.6% after the Swiss pharma company reported mixed first quarter results. Sales beat expectations due to a boost to the diagnostics division, while the pharmaceutical unit missed. As we reported on Sunday, the big news out of France is that Macron won the second round of the Presidential Election with 58.6% of the vote vs Le Pen at 41.4%, while Le Pen conceded defeat after the initial projections, according to Reuters and Sky News. Elsewhere, ECB President Lagarde commented that interest rate hikes will not lower energy prices, according to Barron’s. ECB policymakers are said to be keen to finish bond purchases as soon as possible and possibly hike rates in July but no later than August, while they are leaning towards two rate moves this year with three also a possibility, according to Reuters sources. However, an ECB spokesperson declined to comment on the timing of ending bond purchases and potential interest rate increases. The EU is said to prepare the creation of a new trade and tech council with India, according to FT sources. The new forum could be unveiled on Monday during the European Commission President’s visit to India. Earlier in the session, Asian stocks slumped the most since March 11 as China’s worsening Covid-19 outbreak and a looming rate hike by the Federal Reserve hurt risk sentiment.  The MSCI Asia Pacific Index fell as much as 2.2% Monday, setting off a grim start to the region’s busiest week for earnings. The biggest drags were technology stocks sensitive to higher interest rates, including Taiwan Semiconductor Manufacturing, Alibaba and Tencent.  Equities in mainland China and Hong Kong were among the region’s worst performers. Chinese stocks slid to a two year low amid fears that rising infections in Beijing may spur an unprecedented city-wide lockdown of the capital. The Chinese regulator also ordered platform companies to better handle online violence, dragging tech stocks lower. READ: China Lockdown Angst Rips Through Markets as Stocks, Yuan Plunge The lockdowns that have now expanded to parts of Beijing will “cause a logistical problem that’s going to affect not just China but also the rest of the world,” Jeffrey Halley, Asia Pacific senior market analyst at Oanda, said in an interview with Bloomberg TV.  With no signs of change in Covid zero policy and very little in terms of actual stimulus, “that all points to lower China stocks and we are going to see a weaker yuan going forward,” he added. Investors are also on guard for corporate earnings. Stock-market heavyweights including Kweichow Moutai in China and Samsung Electronics in South Korea are expected to release first-quarter results this week.   With a number of Fed speakers recently showing support for 50-basis-point hikes, tech shares led declines of major gauges in the region. Taiwan’s Taiex dropped 10% from its January high.   Japanese equities dropped, extending a global selloff amid prospects for aggressive U.S. interest-rate hikes and a worsening Covid outbreak in China. Electronics and machinery makers were the biggest drags on the Topix, which fell 1.5%, with 32 of 33 industry groups in the red. Fast Retailing and SoftBank Group were the largest contributors to a 1.9% loss in the Nikkei 225. Indian stocks also fell, joining their peers across Asia, as appetite for risk waned amid renewed concerns over Covid infections and its possible impact on business growth.  The S&P BSE Sensex dropped 1.1% to 56,579.89, while the NSE Nifty 50 Index slipped 1.3% to 16,953.95. Reliance Industries Ltd. lost 2.3%, the most in seven weeks. It was the biggest drag on the Sensex, which saw 23 of its 30 stocks trading lower.   All but one of 19 sectoral sub-indexes compiled by BSE Ltd. declined, led by a gauge of metal stocks.  The continued war in Ukraine and fears of a wider lockdown in Beijing are weighing on sentiment, already impacted by the risk of a global slowdown as the U.S. Fed raises rates to tame inflation. Of the six Nifty 50 firms that have announced results so far, four have missed, while two have beaten analyst estimates. Bajaj Finance, Hindustan Unilever, Axis Bank are among the companies releasing Jan-March earnings this week.  With risk off, safe havens were mostly bid: Treasuries advanced across the curve, with yields on the belly falling about 10bps and 10Y yields sliding 8bps to 2.833%. The belly of the UST curve outperforms by 1-2bps. Peripheral spreads widen to core with 10y Italy lagging peers on the rally. European bonds advanced, yet underperformed Treasuries; the spread between French 10-year bond yields and German equivalents tightened at the open after President Emmanuel Macron was re-elected as French president, only to widen as haven demand supported bunds. IG dollar issuance slate empty so far; preliminary estimates are for around $25 billion this week. •    Three-month dollar Libor +1.11bp to 1.22486%. In FX, the Bloomberg Dollar Spot Index rose a third day to the highest level since May 2020; the greenback advanced against all of its Group-of-10 peers apart from the yen and the Swiss franc; AUD and NZD lag G-10 peers. USD/JPY holds above 128. The euro fell to its lowest level versus the dollar since March 2020, erasing earlier gains amid broader greenback strength.  The pound slumped to the lowest versus the dollar since September 2020 and gilts advanced. The Aussie was the worst G-10 performer amid fears over the outlook for China’s demand for iron ore and with the selloff boosted by options-related selling. The yen rose, as concerns about the economic impact of accelerating U.S. rate increases put a pause on the recent aggressive selling of the currency. Japan’s government bonds tracked Treasuries higher with support from purchases by the Bank of Japan. Perhaps most importantly, the yuan - which until now had resisted any weakness - plunged again, dropping to the lowest level in 17 months as the offshore yuan dropped below 6.60 the lowest level since Nov 2020, spurring a selloff in emerging-market currencies. In commodities, crude futures sold ell off with WTI down over 4% and back on a $97-handle. Base metals are similarly deep in the red. Spot gold drops ~$14 to trade near $1,916/oz. Monday’s pullback in the soaring price of commodities since Russia’s invasion of Ukraine has done little to assuage concerns about runaway inflation. Fed Jerome Powell had outlined his most bold approach yet to reining in surging prices and the European Central Bank signaled stronger tightening. Bitcoin continued to tumble alongside the broader crypto market, even though the harder the stocks fall and the more the Fed tightens, the more it will eventually have to ease, unleashing the next surge higher in cryptos which we expect to push bitcoin over $100,000 and Ether over $10,000. Looking at the calendar, the economic data slate includes March Chicago Fed national activity (8:30am) and April Dallas Fed manufacturing activity(10:30am); consumer confidence, GDP, PCE deflator and University of Michigan sentiment are ahead this week. Today we will earnings from Coca-Cola, Activision Blizzard, Vivendi. Market Snapshot S&P 500 futures down 0.7% to 4,235.25 STOXX Europe 600 down 1.8% to 445.31 MXAP down 2.0% to 166.02 MXAPJ down 2.4% to 546.02 Nikkei down 1.9% to 26,590.78 Topix down 1.5% to 1,876.52 Hang Seng Index down 3.7% to 19,869.34 Shanghai Composite down 5.1% to 2,928.51 Sensex down 1.0% to 56,637.35 Australia S&P/ASX 200 down 1.6% to 7,473.28 Kospi down 1.8% to 2,657.13 German 10Y yield little changed at 0.89% Euro down 0.4% to $1.0751 Brent Futures down 4.4% to $101.96/bbl Gold spot down 0.6% to $1,920.54 U.S. Dollar Index up 0.20% to 101.43 Top Overnight  News from Bloomberg China’s coronavirus outbreak worsened as rising cases in Beijing sparked jitters about an unprecedented lockdown of the capital, with policy makers racing to avert a Shanghai-style crisis that’s already wrought havoc on the financial hub China must take stronger action to boost growth above 5% in the second quarter, said a central bank adviser who warned the country needs to lay a foundation for achieving its full-year target in the face of rising economic risks A sustained and substantial increase in U.S. real yields would be bad news for developing nations as it typically boosts the dollar and sucks capital out of riskier assets, like in 2008 and 2013 The U.S. announced it would start sending diplomats back to Ukraine and provide more military aid as Secretary of State Antony Blinken and Secretary of Defense Lloyd Austin visited Kyiv late on Sunday night, in the highest- level U.S. visit to the war-torn country since Russia invaded China’s central bank stepped up its support for several distressed developers by allowing banks and bad-debt managers to loosen restrictions on some loans to ease a cash crunch, according to people familiar with the matter A more detailed look at global markets courtesy of Newsquawk APAC stocks traded negatively after last Friday's stock rout on Wall Street with risk sentiment hampered by holiday closures, China's COVID-19 woes and as participants brace for a busy week of key earnings releases. Nikkei 225 shed around 500 points with sentiment not helped by several earnings guidance downgrades and with Nissan shares were hit as alliance partner Renault mulls selling a partial stake in the Japanese automaker. Hang Seng and Shanghai Comp underperformed on the COVID situation after daily deaths in Shanghai rose again and with the city to conduct another round of mass testing, while Beijing also scrambles to contain an outbreak with its Chaoyang district to require residents and workers to undergo three COVID-19 tests this week. Top Asian News Asia Stocks Fall Most in Six Weeks as China Outbreak Worsens China Woes Stoking Inflation Angst Set to Weigh on the Euro Shimao Unit Proposes to Pay Down Puttable Bond Faster: REDD Loan Curbs Eased for Distressed Developers: Evergrande Update European cash markets kicked off the week lower across the board with a relatively broad-based performance seen across the majors. Sectors are lower across the board with a clear defensive tilt: Energy and Basic Resources sit at the bottom of the bunch amid hefty downside in underlying commodities. Stateside futures are lower in tandem with the broader market sentiment, whilst the NQ is slightly more cushioned by the earlier decline in yields. Twitter is reportedly re-examining Elon Musk’s bid and be more receptive to a deal with the sides meeting on Sunday to discuss the proposal. It was separately reported that Twitter is facing increasing shareholder pressure to negotiate with Elon Musk in his takeover bid and that the Co. is in talks with Elon Musk in which a potential deal could be made as early as this week, according to WSJ. Top European News Macron Gets Second Chance to Show France His Vision Can Work Credit Suisse Special Audit Backed by Norway’s Wealth Fund SocGen Too Quick to Axe Boss Accused of Trying to Kiss Colleague Art Seized at U.S. Homes Part of Crackdown on Wealthy Russians FX: DXY sets new 2022 peak at 101.750 amid safety flight and sharp slide in crude alongside other commodities. Yen back in favour as risk sentiment sours irrespective of denials about joint Japanese and US intervention discussion - Usd/Jpy towards base of 128.87-127.89 range. Aussie underperforms on Anzac Day due to steep decline in copper and iron ore - Aud/Usd tests 0.7150 and Aud/Nzd cross under 1.0850 vs 1.0940 at one stage overnight. Yuan extends depreciation as Covid spreads to a district in Beijing and PBoC continues to lower Cny midpoint reference rate - Usd/Cnh just shy of 6.6000, Usd/Cny eyeing 6.5650. Euro averts 1.0700 test, narrowly, and pares more losses after surprisingly upbeat Ifo survey, on the surface - Eur/Usd rebounds to circa 1.0750, but still well below Macron victory high. Pound loses Fib support on the way through 1.2800 and sub-8400 vs Dollar and Euro respectively. Fixed Income Debt futures firm as risk appetite wanes, but bonds fade beyond 154.50 in Bunds, 119.00 in Gilts and 119-25 in the 10 year T-note. Core EZ bonds lose momentum after German Ifo survey beats and irrespective of less encouraging accompanying statements. French OATs off peak within 147.38-146.28 range posted on confirmation of Macron defeating Le Pen to retain Presidency. European Commission sells EUR 2.499bln (exp. EUR 2.500bln) 0.4% 2037 NGEU; b/c 2.05x (prev. 1.49x), average yield 1.626% (prev. 0.375%). Commodities: WTI and Brent June contacts have continued to decline since the resumption of futures trading. Spot gold has been caged to a near-USD 5/oz range since the European open as the impact of a firming Buck negated the effects of lower yields at the time. Base metals are in a sea of red as China's lockdown woes hit the demand side of the equation – with LME aluminium and zinc the laggards at the time of writing. US Event Calendar 08:30: March Chicago Fed Nat Activity Index, est. 0.45, prior 0.51 10:00: Revisions: Retail Sales, Inventories 10:30: April Dallas Fed Manf. Activity, est. 4.8, prior 8.7 DB's Jim Reid concludes the overnight wrap I survived a weekend alone with my kids but the only way for all of us to cope was to comfort eat and spend so much time on Netflix that I may as well cancel my subscription as there is nothing left to watch now. Never has Mum been so welcome by an adult, 3 kids and a dog, as she was on her return last night. Parenting is hard! Central bankers are finding it hard too at the moment and it was a fascinating past week on that front as several important central bankers belatedly played a game of leapfrog on who could make the most aggressively hawkish rhetoric on taming inflation. Those speaking at the start of the week might have seemed hawkish at the time but by the end of the week they almost looked dovish. The IMF/World Bank gathering probably focused the minds of all the Governors, Presidents and Chairs present and hawkishness spread through the event like wildfire with the notable exception of Japan's Kuroda who is seemingly sticking to the country's YCC. We are now in the Fed blackout period so they won't add to the hawkishness for the 9.5 days before we get the FOMC decision. Note that the BoJ meet on Thursday although nothing suggests they are going to pivot and will remain the last hawkish shoe to drop. The French election has passed without incident with President Macron gaining 58.6% of the vote vs. 41.4% for Le Pen. Macron won 66.1% of the second round vote in 2017 and with him unable to stand in 2027 and with the traditional parties share of the vote at record lows who knows where French politics will be by then. However much water will flow under Le Pont des Arts before we need to worry about that. Meanwhile, the next hurdle for Macron will come with the Parliamentary elections on the 12th and 19th of June. Commonly referred to as the ‘third round’, the elections will be crucial as it will define the make-up of the government Macron must rely on to push through his reform program. See Marc de-Muizon's blog last night here for more on this. The Euro popped nearly +0.6% higher at the Asian open after the results became clear but has subsequently dipped into negative territory as risk off dominates in Asia. Mainland Chinese stocks are sliding with the Shanghai Composite (-1.95%) and CSI (-2.39%) down, falling to its lowest level since 2020 amid the worsening Covid situation in China, particularly in the financial hub of Shanghai. Strict restrictions have begun to spread, with authorities ordering mandatory Covid tests in a district of Beijing and many buildings locked down. The Hang Seng (-2.47%) is also lagging and elsewhere, the Nikkei (-1.94%) and Kospi (-1.44%) are weak. Outside of Asia, futures contracts on the S&P 500 (-0.42%) and Nasdaq (-0.30%) are lower with 2 and 10yr US yields both around -5bps lower. Brent and WTI are both around -2.9%. Moving on to this week now and it is an important one for European inflation with German CPI on Thursday and the French and Italian equivalent (plus PPI) on Friday with the overall Euro CPI the same day. US (Thursday) and European Q1 GDP (Friday) will also be of interest. Back to the US and inflation related data will be the closest watched with Friday's ECI expected to be strong. This is one of the key indicators the Fed use for labour market strength. The core PCE deflator (the Fed's preferred inflation measure) also comes out as part of the income and spending report data on Friday. The rate of growth may well tick down here so this might provide a shred of good news on inflation without changing the story too much. It will be an important week for corporate earnings too with 179 of the S&P 500 reporting and 134 in the Stoxx 600. Big US tech will be the highlight with Microsoft and Alphabet (tomorrow), Meta (Wednesday), and Apple and Amazon (Thursday). Consumption patterns will be in focus when we get results from Coca-Cola (today), Mondelez, Chipotle (tomorrow), Kraft Heinz (Wednesday) and McDonald's (Thursday). Meanwhile, a range of banks across the globe will give a pulse check on consumer credit. Notable reporters will include HSBC, UBS, Santander (tomorrow), Credit Suisse (Wednesday), Barclays (Thursday), finishing with BBVA and NatWest on Friday. Other notable financials reporting will include Visa (tomorrow), PayPal (Wednesday) and Mastercard (Thursday). Other tech-related companies releasing results will include Activision Blizzard (Monday), LG, Qualcomm, Spotify (Wednesday), Samsung, Intel and Twitter (Thursday). In healthcare, another sector that benefitted from the pandemic, reporters will include Novartis (tomorrow), GlaxoSmithKline (Wednesday), Eli Lilly, Merck, Sanofi (Thursday) and AstraZeneca (Friday). To see how the commodity rally and the focus on energy transition affected major commodity companies worldwide, markets will get earnings from Iberdrola, Vale (Wednesday), Total, Repsol (Thursday), Exxon, Orsted, Chevron and Eni (Friday). Downstream users like transport firms will report too, including General Motors (tomorrow), Boeing, Mercedes-Benz and Ford (Wednesday). Other notable corporates releasing results will include Texas Instruments, General Electric, UPS and Caterpillar. The rest of the day by day calendar of events appears at the end as usual on a Monday. Reviewing last week now, as discussed at the top a cadre of central bank officials reinforced the idea that monetary policy needs to tighten on both sides of the Atlantic this year, thus driving sovereign yields higher. Chair Powell, in his last remarks before the Fed’s May meeting communications blackout, lent credence to the wisdom of front loading the hiking cycle and getting policy rates to neutral as quickly as possible. Regional Fed presidents, spanning ideologies, concurred throughout the week. Short-term markets ended the week pricing more than 150 basis points of tightening over the next three meetings, embedding some risk premium for a 75 basis point hike at each meeting. Futures markets are implying Fed policy rates will be north of 2.80% by the end of the year, above the Fed’s estimates of neutral. President Lagarde was careful to draw a distinction between the US and European situation, but nevertheless would not rule out an increase to ECB policy rates as early as July, following the cessation of net APP purchases, which is likely early in the third quarter. Markets are pricing 24 basis points of ECB tightening by the July meeting, and 85 basis points of tightening for the rest of the year. Bank of England Governor Bailey highlighted the path of policy was laced with uncertainty, but inflation was likely to increase due to rising energy costs. Bailey added the bank would not sell its security holdings into fragile markets. Even committed dove, Ingves of the Swedish Central Bank, rowed back on his previous mantras and acknowledged tightening was needed. As a result, Sovereign yields were higher in each jurisdiction, with 10yr Treasury, bund, and gilt yields increasing +8.2bps (-1.2bps Friday), +10.6bps (+2.4bps Friday), and +7.4bps (-4.9bps Friday), respectively. For their part, 10yr OAT yields closed the week at a +44.5bp spread above bund equivalents, their tightest since March, as President Macron’s polling advantage increased heading into yesterday’s election. Equity indices retreated on the tighter policy path. The STOXX 600 fell -1.42% (-1.79% Friday) while the S&P 500 was -2.75% lower (-2.77% Friday), bringing it into correction territory YTD (-10.37%) again. Mega cap tech stocks bore the brunt, with FANG+ falling -8.76% (-1.99%) as higher discount rates hit valuations. The mega cap losses accelerated after Netflix reported it lost subscribers in the first quarter, which sent its share prices more than -35% lower. The reprieve was only temporary the following day when Tesla reported a record profit on the back of surging electric car demand. Brent crude oil futures were relatively subdued by comparison to other asset classes and recent volatility, falling -5.43% (-2.48% Friday) over the week to $105.64/bbl. Elsewhere the IMF revised down their global growth expectations in light of Russia’s invasion, expecting the global economy to grow 3.6 percent in each of the next two years. Fighting continued in eastern Ukraine, with Russia declaring victory over the port city of Mariupol, while there was not any material public progress in peace negotiations. The Credit Derivatives Determinations Committee said Russia’s remuneration of foreign currency bonds with rubles would constitute a default and trigger credit default swaps. Russia has a 30-day grace period, which ends May 4, to make creditors whole. Tyler Durden Mon, 04/25/2022 - 07:48.....»»

Category: worldSource: nytApr 25th, 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

These Were The Companies With The Most Patents In 2021

Despite the COVID-19 pandemic, a record number of patents were filed last year, with several Asian countries, including China, dominating in the list. The UN’s World Intellectual Property Organization, in its annual overview, noted that 277,500 international patents were filed last year, an increase of 0.9% from 2020. The year 2021 was the 12th consecutive […] Despite the COVID-19 pandemic, a record number of patents were filed last year, with several Asian countries, including China, dominating in the list. The UN’s World Intellectual Property Organization, in its annual overview, noted that 277,500 international patents were filed last year, an increase of 0.9% from 2020. The year 2021 was the 12th consecutive year of growth in international patent filings. Let’s take a look at the top ten companies with the most patents in 2021. 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 Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton 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); Q4 2021 hedge fund letters, conferences and more Top Ten Companies With The Most Patents In 2021 We have used the data from the IFI Claims Patent Service to rank the top ten companies with the most patents in 2021. Following are the top ten companies with the most patents in 2021: Qualcomm (2,149) Founded in 1985 and headquartered in San Diego, this company deals in digital telecommunications products and services. QUALCOMM, Inc. (NASDAQ:QCOM) received 6% fewer patents in 2021 than what it got in 2020. Qualcomm reported revenue of more than $33 billion in 2021, compared to over $23 billion in 2020. Its shares are down over 16% YTD and over 7% in the last one month. Microsoft (2,418) Founded in 1975 and headquartered in Redmond, Wash., this company deals in software, services, devices, and solutions. Microsoft Corporation (NASDAQ:MSFT) received 17% fewer patents in 2021 than what it got in 2020. It was ranked fourth in terms of the number of patents in 2020. Microsoft reported revenue of more than $168 billion in 2021, compared to over $143 billion in 2020. Its shares are down almost 7% YTD but are up over 6% in the last one month. LG Electronics (2,487) Founded in 1947 and headquartered in Seoul, South Korea, this company deals in consumer electronics devices. LG Electronics Inc. (KRX:066570) got 12% fewer patents in 2021 and was ranked seventh in 2020. Apple (2,541) Founded in 1976 and headquartered in Cupertino, Calif., this company deals in smartphones, wearables, computers, as well as offers related services. Apple Inc (NASDAQ:AAPL) moved up one place in 2021 despite getting 9% fewer patents in 2021. The company got 12% more patents in 2020 than what it got in 2019. Apple shares are up almost 1% YTD and almost 7% in the last one month. Intel (2,615) Founded in 1968 and headquartered in Santa Clara, Calif., this company deals in computer products and technologies. Intel Corporation (NASDAQ:INTC) got 9% fewer patents in 2021 than what it got in 2020. The chip maker was ranked fourth in 2017 and 2018, but dropped to fifth place in 2019 and 2020. Intel shares are down almost 1% YTD but are up over 7% in the last one month. Huawei (2,770) Founded in 1987 and headquartered in Shenzhen, China, this company designs, makes and sells telecommunications equipment, consumer electronics and smart devices. Huawei got 10% more patents in 2021 than what it got in 2020. It was ranked ninth in terms of the number of patents in 2020. The company has been investing more than 10% of its sales revenue back into R&D, and its R&D team constitutes more than half of its total workforce. Taiwan Semiconductor Manufacturing (2,798) Founded in 1987 and headquartered in Hsinchu, Taiwan, this company makes and sells integrated circuits and wafer semiconductor devices. Even in 2020, when most companies witnessed a drop in patents, Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) reported a 22% increase and moved from 12th spot in 2019 to sixth in 2020. TSMS usually invests about 8-9% of the revenue on R&D. Its shares (ADR) are down over 11% YTD and almost 2% in the last one month. Canon (3,021) Founded in 1937 and headquartered in Tokyo, Japan, this company develops, makes and sells copying machines, office multifunction devices, cameras, printers and more. The Japanese company has been among the top five in the list of number of patents granted for 36 consecutive years. With 40,706 active patent families, Canon Inc (NYSE:CAJ) ranks ninth in terms of cumulative patent holdings globally. Canon allocates about 8-9% of its net sales to R&D expenses. Samsung (6,366) Founded in 1969 and headquartered in Suwon, South Korea, it is a multinational electronics corporation. Samsung Electronics Co Ltd (KRX:005930) got 1% fewer patents in 2021 than what it got in 2020. With 90,416 active patent families, Samsung ranks first in terms of cumulative patent holdings globally. It is the largest non-U.S. spender on R&D. During FY2020, the South Korean company spent about 8.9% of its sales on R&D. IBM (8,682) Founded in 1911 and headquartered in Armonk, N.Y., this company offers integrated solutions using information technology and knowledge of business processes. IBM (NYSE:IBM) got 5% fewer patents in 2021 than what it got in 2020. With 41,937 active patent families, IBM ranks eighth in terms of the cumulative patent holdings globally. The company has received more than 150,000 U.S. patents since 1920. Its shares are down over 1% YTD but are up almost 5% in the last one month. Updated on Mar 31, 2022, 2:41 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkMar 31st, 2022

10 Stocks US Politicians Are Buying

In this article, we discuss the 10 stocks US politicians are buying. If you want to read about some more stocks that US politicians are buying, go directly to 5 Stocks US Politicians Are Buying. Politicians in the United States are required to submit periodic reports of their stock trading activities to regulators for transparency […] In this article, we discuss the 10 stocks US politicians are buying. If you want to read about some more stocks that US politicians are buying, go directly to 5 Stocks US Politicians Are Buying. Politicians in the United States are required to submit periodic reports of their stock trading activities to regulators for transparency purposes. Although these reports are required within 45 days of stock transactions, many lawmakers across both sides of the aisle are routinely late with these disclosures. According to a comprehensive assessment of the reports so far submitted by lawmakers, at least 216 politicians, out of 535 who presently serve in the US Congress, are involved in stock trading of some sort.  These lawmakers have so far disclosed over 45,000 stock trades worth more than $2.2 billion in volume. Nearly 4,000 different companies have been traded by US politicians through these transactions. The Republicans lead the Democrats in total trades, volume, and the number of personnel making the trades. These trading activities have come under increased scrutiny in recent weeks amid social media outcry over lawmakers trading stocks of firms that are affected by decisions of government committees comprising these lawmakers.  Investors eager to replicate the success that some of these non-professional stock traders have enjoyed at the market should closely monitor their trading activity. Some of the stocks that US politicians are buying include Meta Platforms, Inc. (NASDAQ:FB), AT&T Inc. (NYSE:T), and Apple Inc. (NASDAQ:AAPL), among others discussed in detail below.  Our Methodology The companies listed below were picked from the Periodic Transaction Report(s) that US politicians who trade stocks are obliged to file. It is important to clarify that the companies listed below were picked from the public record of investments US politicians and their families have made in the past few months. The purchases may not have been made by the politicians themselves but only disclosed on behalf of their families.  Data from around 900 elite hedge funds tracked by Insider Monkey was used to identify the number of hedge funds that hold stakes in each firm. Stocks US Politicians Are Buying 10. Tesla, Inc. (NASDAQ:TSLA) Number of Hedge Fund Holders: 91     Tesla, Inc. (NASDAQ:TSLA) makes and sells electric vehicles and clean energy solutions. Hedge funds have been loading up on the stock in recent months. At the end of the fourth quarter of 2021, 91 hedge funds in the database of Insider Monkey held stakes worth $12.9 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 60 in the previous quarter worth $10.6 billion. US politician Nancy Pelosi on March 22 revealed a purchase of Tesla, Inc. (NASDAQ:TSLA) shares worth somewhere between $1 million and $5 million. In the filing, disclosed four days after the transaction, Pelosi detailed that she had exercised 25 CALL options on nearly 2,500 shares of the EV maker at a strike price of $500 per share.  Just like Meta Platforms, Inc. (NASDAQ:FB), AT&T Inc. (NYSE:T), and Apple Inc. (NASDAQ:AAPL), Tesla, Inc. (NASDAQ:TSLA) is one of the stocks that elite hedge funds are flocking to.  Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2021 investor letter: “Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. Tesla, Inc. (NASDAQ:TSLA) stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”  9. Lowe’s Companies, Inc. (NYSE:LOW) Number of Hedge Fund Holders: 72    Lowe’s Companies, Inc. (NYSE:LOW) operates as a home improvement retailer. According to the latest filings, US politician Josh Gottheimer purchased shares of the company worth somewhere around $1,000 and $15,000. The transaction in this regard was disclosed almost a month after it was made.  Lowe’s Companies, Inc. (NYSE:LOW) is a favorite home improvement stock in the finance world. At the end of the fourth quarter of 2021, 72 hedge funds in the database of Insider Monkey held stakes worth $6.8 billion in Lowe’s Companies, Inc. (NYSE:LOW), up from 60 in the preceding quarter worth $5 billion. In its Q2 2021 investor letter, Pershing Square Holdings, Ltd., an asset management firm, highlighted a few stocks and Lowe’s Companies, Inc. (NYSE:LOW) was one of them. Here is what the fund said: “Since the onset of the COVID-19 pandemic, Lowe’s Companies, Inc. (NYSE:LOW) has experienced a significant acceleration in demand driven by consumers nesting at home, higher home asset utilization and the reallocation of discretionary spend. In the three years since Marvin Ellison became CEO, the company has executed a multi-year transformation plan to bolster Lowe’s retail fundamentals, reduce structural costs, expand distribution capabilities, and modernize systems and the company’s online capabilities. This transformation has allowed Lowe’s to meet consumers’ needs during this highly elevated period of demand, and positioned the company for continued success and accelerated earnings growth. In the second quarter, Lowe’s Companies, Inc. (NYSE:LOW) reported U.S. same-store-sales growth of 2.2%. Growth was bolstered by strength from the critical Pro consumer, where Lowe’s reported growth of 21%, off setting moderating do-it-yourself (“DIY”) demand. While DIY demand has receded from peak-COVID-19 periods, Pro customer demand has accelerated as consumers engage Pro’s for larger renovation projects. Notwithstanding the headline growth figure, which is impacted by comparisons to COVID-19-aff ected months from spring of 2020, demand remains extremely elevated relative to baseline 2019 levels. July same-store-sales, the most recent full month for which the company has provided disclosure, were up 31.5% on a two-year basis and management indicated August month-to-date results are substantially similar. More significantly, Lowe’s reported Pro growth of +49% on a two-year basis in Q2, evidence that Lowe’s Companies, Inc. (NYSE:LOW) focus on the Pro is bearing fruit. Share gains with the critical Pro customer will provide a tailwind to growth that should allow Lowe’s to outperform market-level growth going forward. Even as the robust demand experienced during the height of COVID-19 stabilizes at a new base, the medium and longer-term macro environment remain very attractive for the home improvement sector and Lowe’s in particular. This favorable context for the sector is evidenced by consumers’ enhanced focus and appreciation of the importance of the home, higher home asset utilization, rising home prices, historically low mortgage rates, an aging housing stock, strong consumer balance sheets, and the general lack of new housing inventory. Against this backdrop, Lowe’s Companies, Inc. (NYSE:LOW) is focused on taking market share and expanding margins. Pro penetration today is still only 25% of revenue as compared to Lowe’s medium-term target of 30% to 35%, providing a runway for continued above market growth. Management continues to execute against various operational initiatives (Lowe’s “Perpetual Productivity Improvement” program) designed to improve the customer experience while enhancing the company’s margins and long term earnings power. The company’s long-term outlook implies significant opportunity for continued margin expansion and earnings appreciation as it executes its business transformation. Lowe’s currently trades at approximately 17 times forward earnings. Home Depot, its closest competitor, trades at approximately 22 times forward earnings despite Lowe’s Companies, Inc. (NYSE:LOW) superior prospective earnings growth. We find this valuation disparity to be anomalous in light of Lowe’s strong execution and potential for further operational optimization.” 8. UGI Corporation (NYSE:UGI) Number of Hedge Fund Holders: 31 UGI Corporation (NYSE:UGI) markets energy products. It is a top energy stock on Wall Street. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder in UGI Corporation (NYSE:UGI) with 8.6 million shares worth more than $396 million. On March 16, US politician John Rutherford disclosed a purchase of UGI Corporation (NYSE:UGI) stock worth $1,000-$15,000. The purchase was made public more than a month after the transaction in this regard.  7. Danaher Corporation (NYSE:DHR) Number of Hedge Fund Holders: 87         Danaher Corporation (NYSE:DHR) is a conglomerate with stakes in businesses like medical, industrial, and commercial products and services. It is one of the favorite diversified stocks among elite hedge funds. At the end of the fourth quarter of 2021, 87 hedge funds in the database of Insider Monkey held stakes worth $7.3 billion in Danaher Corporation (NYSE: DHR), compared to 74 in the previous quarter worth $6.9 billion. Regulatory filings show that US politician John Curtis, on March 9, purchased Danaher Corporation (NYSE:DHR) stock worth somewhere around $1,000 to $15,000. The transaction in this regard was made public on March 24, almost two weeks after it was made.  In its Q2 2021 investor letter, Cooper Investors, an asset management firm, highlighted a few stocks and Danaher Corporation (NYSE:DHR) was one of them. Here is what the fund said: “During the quarter the Fund’s largest holding Danaher Corporation (NYSE:DHR) made a notable acquisition, spending US$9bn (~5% of its market cap) to buy privately held Aldevron, a leading player in the fast growing field of genomic medicine. Over the years Danaher Corporation (NYSE:DHR) has built up a unique portfolio of life science and diagnostic assets. Their key life sciences businesses involve providing the tools and services to research, develop and manufacture biotech drugs. For example, they are a key provider to over 400 COVID vaccine and therapeutic projects globally. Aldevron expands Danaher’s capability into gene therapy. Aldevron is a supplier of key ingredients for the next generation of therapies, namely cell and gene therapy and mRNA vaccines. Aldevron is the leader in these fields and this deal puts Danaher Corporation (NYSE:DHR) in pole position to participate in the wave of innovation occurring in this space. The acquisition multiple is high – Danaher Corporation (NYSE:DHR) are paying US$9bn for what today is a US$500m revenue business but growing 30% a year with 40% operating margins, in our view justifying the high price. Importantly, management can see an investment return in line with recent acquisitions. As a reminder Danaher’s history and skill set is acquiring businesses, it is how the company has been successfully built over 35 years. The shares were up 4% on the news and have gained nearly 20% for the quarter. Most companies would be sold down off the back of an announcement like this but Danaher has a long multidecade track record of successful acquisitions and this fits a similar enough pattern. The opportunity is to grow Aldevron into a multibillion dollar business given the growth in genomics and RNA innovation that’s occurring and as more of these types of therapeutics become approved. Overall as a key supplier with deep global networks across life sciences and medical research Danaher Corporation (NYSE:DHR) is very well placed to continue growing with the innovation in biotech and diagnostic markets. It remains an incredibly well run company and a high conviction investment in the Fund.” 6. Wells Fargo & Company (NYSE:WFC)  Number of Hedge Fund Holders: 94 Wells Fargo & Company (NYSE:WFC) provides financial services. As interest rates rise, the stock has seen increased interest from hedge funds. At the end of the fourth quarter of 2021, 94 hedge funds in the database of Insider Monkey held stakes worth $6.11 billion in Wells Fargo & Company (NYSE:WFC), compared to 88 the preceding quarter worth $6.18 billion. On March 21, US politician disclosed a purchase of Wells Fargo & Company (NYSE:WFC) stock worth somewhere between $1,000 to $15,000. The transaction in this regard took place in early March. Along with Meta Platforms, Inc. (NASDAQ:FB), AT&T Inc. (NYSE:T), and Apple Inc. (NASDAQ:AAPL), Wells Fargo & Company (NYSE:WFC) is one of the stocks on the radar of institutional investors.  In its Q4 2020 investor letter, Davis Funds, an asset management firm, highlighted a few stocks and Wells Fargo & Company (NYSE:WFC) was one of them. Here is what the fund said: “Detractors to performance relative to the index include financial services holdings such as Wells Fargo. While banks in general have suffered due to the recession and experienced credit losses, Wells Fargo & Company (NYSE:WFC) also suffered from operational missteps. It is our expectation, however, that our bank holdings in general will benefit from stronger economic growth as the pandemic recedes; and we believe Wells Fargo & Company (NYSE:WFC) in particular, will, over time, lower their costs and successfully grow their businesses.”   Click to continue reading and see 5 Stocks US Politicians Are Buying.   Suggested Articles: 15 Best Gambling Companies to Buy Now 10 Best Growth Companies Under $10 10 Best Companies for Animal Lovers Disclosure. None. 10 Stocks US Politicians Are Buying is originally published on Insider Monkey......»»

Category: topSource: insidermonkeyMar 26th, 2022

How to Invest Like Warren Buffett

If it were easy to become a billion-dollar investor, then everyone would be one. But there are some keys to finding great value stocks like the "Oracle of Omaha". Tracey Ryniec highlights three secrets that any investor can use. Warren Buffett is one of the legends of stock investing.We all know his story.He started investing in stocks when he was just 11.  By the time he was 29 years old, he was already a millionaire stock investor.In his 60s, he became a billionaire stock investor.Often, the biggest question people ask about Buffett is: how does he do it?And: could I do it too?Buffett has become rich by buying undervalued, or out of favor stocks, and holding them for years.Sounds easy, right?If it was, everyone would be able to do what Buffett has done.However, Buffett does have some secrets that us mere mortal investors can deploy to help us pick great value stocks.3 Secrets to Picking Great Value Stocks Like Buffett1) Buy What You Know Even investing legends have favorite products. Over the years, Berkshire Hathaway has collected a big roster of well-known companies including Dairy Queen, See’s Candy, and Burlington Northern railroad.How many of these acquisitions were influenced by Buffett’s own preferences for the products?In Berkshire’s stock portfolio, one of its longest owned stock positions is in Coca-Cola, which Buffett first began buying in 1988.Is it a coincidence that Coke is one of Warren Buffett’s favorite drinks? Over the last decade, Buffett has disclosed in interviews to both Fortune and the Financial Times that he drinks 5 cans of Coke a day, usually Diet Coke or Cherry Coke.Clearly, he’s a fan.But you have to do more than just liking a product, to buy the stock.Buffett has always been an avid researcher and used to order the Annual Reports from companies, when they would send them to you in the mail, to check the financials. He used to have stacks of the reports piled in his garage.What’s your favorite product or brand?We often have our fingers on the pulse of everyday products and activities, or even of something that is used in our jobs, which might get overlooked by others.It’s a great way to find value stocks.2) Buy Stocks on Sale This sounds so simple, right?But not so fast.Since the March 2020 coronavirus sell-off, stocks have been on a tear. In 2021, the S&P 500 hit 70 new all-time highs, second only to red-hot 1995, which had 77 highs.Over the last 2 years, it has become more difficult, but not impossible, to find good quality companies that are “on sale.”But Buffett still believes in buying undervalued, well-known companies with stellar earnings growth.One of the most undervalued stocks he’s bought since the beginning of the pandemic was AbbVie, the pharmaceutical giant and maker of Botox.It was one of his few new additions to the Berkshire portfolio in 2020 and he got it massively undervalued, with a forward P/E of around 8 and a dividend yielding over 4%.Shares have since rallied to new all-time highs.Buying stocks on sale is the easiest way to invest like Buffett. Any investor can search for value stocks by the classic fundamentals like P/E, PEG or Price-to-Sales ratios.If you had done so in 2020, you would have seen some great value stocks, including AbbVie.It doesn’t get any easier than that.Continue . . .------------------------------------------------------------------------------------------------------Get Private Picks from Zacks’ Long-Term PortfoliosThrough good markets and bad, one unique stock-picking method has more than doubled the market’s average gain with an incredible +25.0% per year.To help you take advantage of rare opportunities in today’s market, we’re opening the vault to reveal all our long-term recommendations. You’ll see stocks priced under $10… income investments… hidden value stocks and more. All for just $1. Special opportunity ends at midnight Sunday, March 27.See Stocks Now >>------------------------------------------------------------------------------------------------------3) Learn to Pivot and Change Course Remember when Berkshire Hathaway owned IBM?Neither do I, but for 7 years, until 2018, Berkshire had a large position in the technology giant.Originally bought in 2011, Berkshire spent $10.7 billion, buying at the average price of $170 per share, to take a significant stake in the company.This was going to be Buffett’s big play into technology, an area he had famously avoided for decades.But it never really worked out. In 2016, shares fell as low as $125.Buffett decided to sell, and exit the position, notwithstanding one of his most famous pieces of advice, “our favorite holding period is forever.”Buffett shrugged off the defeat in interviews saying the company never lived up to expectations so he was changing course.What did he buy instead?Apple. In 2016, Apple was undervalued with a forward P/E of around 10 and the Street was mostly ignoring it.That investment has more than made up for the mistake of buying IBM and is now one of the key pillars of Berkshire Hathaway’s business.You will make investing mistakes, but the secret is to know when to pivot.Buffett does it, and you can do it too.Buffett’s Final Key Ingredient: Discipline Buffett has one skill as an investor that’s hard to come by: discipline.He will wait, sometimes years, in order to buy a stock, or a company, at a low price.His discipline paid off in the 2008-2009 financial crisis when he was able to step in and offer financial assistance to struggling banks, offering a $5 billion bailout to Goldman Sachs, for instance, when others were on sinking ships.He had what his mentor Benjamin Graham famously called a “margin of safety.”This can be achieved by being prepared for pullbacks, corrections or even bear markets.Buffett’s Discipline Pays Off in 2022  Last year, in November 2021, the growth stocks began to weaken and the sell-off picked up steam in 2022. The NASDAQ fell 20% and the S&P 500 slid 10% year-to-date.While many growth stocks were suddenly on sale, value stocks also sank. Although they were already cheap, you could get them even cheaper.This was a buying opportunity. Buffett’s patience had paid off. In 2022, he jumped in to buy, taking a big position in oil producer Occidental Petroleum and he bought Alleghany, an insurance company, for $11.6 billion in cash. It was his biggest acquisition since 2016.Buffett missed out on the deals during the 2020 coronavirus sell-off. But his buying spree 2 years later just goes to show you that even if you missed that buying opportunity, another one is always coming.Did you have the discipline to wait for the best deals?Were you ready for this year’s market sell-off?How to Make Money on Buffett’s Success When you combine these keys to successful investing, only one element is missing: time.Buffett prefers to buy stocks he can own for the long haul. He’s quoted as saying “If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.”After finding the right stocks at the right prices, you have to give your stocks time to live up to their full long-term potential.Today, I'm offering you a chance to see which stocks we believe have the most promising upside for the months and years ahead. In Zacks Investor Collection, you get unrestricted access to all the real-time buys and sells from our long-term portfolios for just $1, including:• Value Investor, focused on Buffett-style selections and strategy• Income Investor, with solid stocks paying healthy dividends• Stocks Under $10, which is scooping up low-priced stocks poised to surge higher• Plus, ETF Investor, Home Run Investor, Zacks Confidential, and Zacks Top 10 Stocks for 2022These portfolios recommended 68 double- and triple-digit winners in 2021 alone, with gains as high as +995.2%.¹You’ll also get access to Zacks Premium with powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more.When you look into Zacks Investor Collection, you’re invited to download the latest edition of our 5 Stocks Set to Double special report. Five Zacks experts each pick their single favorite stock to gain +100% or more in the next 12 months.This unique arrangement enables you to find quality stocks at prices we believe Warren Buffett would approve of – and extra resources to help find your own winners.Don’t miss out. This opportunity will end on Sunday, March 27.Good investing, Tracy RyniecTracey Ryniec, Zacks' insider and value strategist, is editor in charge of the Value Investor portfolio.¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position.  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 To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksMar 26th, 2022

Bear of the Day: American Woodmark (AMWD)

Inflation, labor and supply chain challenges continue to hit this cabinet maker. American Woodmark Corp. AMWD is having trouble fighting inflationary pressures even though its pushing through price increases. Analysts have cut this Zacks Rank #5 (Strong Sell) earnings estimates for this year and next.American Woodmark is one of the largest cabinet manufacturers in America with over a dozen brands. It sells in major home centers and partners with builders and independent dealers and distributors.Inflation Continued to Hit in Q2Despite pushing price increases through in the fiscal first quarter, inflationary pressures continued to hit American Woodmark in the fiscal second quarter.On Nov 23, American Woodmark reported its second quarter results and missed on the Zacks Consensus for the fifth quarter in a row.It reported $0.62 versus the consensus of $0.81, for a 23.5% miss.Net income in the second quarter of 2022 fell $21.1 million due to continued expansion of inflationary pressures outpacing the company's price actions taken across all their channels.Prior price increases have begun to partially offset the inflationary impacts but there is an inherent lag between price actions and seeing some relief. It can take up to 6 months, or more.Net sales for the quarter were only up 1% to $453.2 million compared to the same quarter a year ago. It did see labor and supply chain challenges in the quarter, especially with particle board.In good news, it experienced growth in the new construction sales channel versus a year ago as market demand remained strong.Earnings Estimates CutWith the labor and supply chain challenges expected to remain, as well as the inflationary pressures, it's not surprising that analysts have been cutting earnings estimates for this year and next.One estimate was lowered over the last 60 days for fiscal 2022 which pushed the Zacks Consensus down to $3.83 from $4.84.That's an earnings decline of 40.2% as it made $6.40 last year.One estimate was also lowered for fiscal 2023 which pushed down the fiscal 2023 Zacks Consensus Estimate to $6.77 from $8.47. That's an increase of 76.8%.Shares Fell Over the Last YearEven though the housing market remains strong, as does cabinet demand, shares of American Woodmark have sunk nearly 32% over the last year.Image Source: Zacks Investment ResearchThey're cheap, but not dirt cheap, at a forward P/E of 17.Inflation, labor and supply chain challenges continue to be a worry.Investors might want to wait until that issue shows some clarity before diving in on American Woodmark. Zacks’ Top Picks to Cash in on Artificial Intelligence This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>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 American Woodmark Corporation (AMWD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksJan 4th, 2022

Tesla"s Cybertruck could finally hit streets in 2022 — here"s what we know about Elon Musk"s 6 future vehicles

Tesla only sells four models right now, but Elon Musk promises that a pickup truck, a slick supercar, an ATV, and more are on the way soon. Tesla could double its lineup in coming years.Tesla Tesla aims to launch a slew of new vehicles in the coming years. But it's been plagued by delays.  Elon Musk is planning a pickup, a semi truck, a supercar, and a cheap electric car.  Musk has also mentioned a van and an ATV.   See more stories on Insider's business page. It's the end of 2021 and Tesla's long-awaited Cybertruck hasn't arrived as Elon Musk initially promised. Musk said earlier this year that production could start this year, but now Tesla officially delayed the truck's production to late 2022.  The futuristic pickup isn't the only vehicle Tesla fans have been patiently waiting for. Musk's automaker sells just four models currently — two sedans and two SUVs — but it has grand plans to expand its lineup in the near future.A semi truck and a supercar are supposed to arrive by 2023, and Musk has said an electric ATV, a $25,000 car, and a van are in the works as well.Here's where those plans stand, and what those vehicles may look like:CybertruckTesla Cybertruck.ReutersTesla's Cybertruck caused a stir upon its reveal during a splashy event in 2019 — and not just because its supposedly bulletproof windows shattered on stage (twice).The pickup's unconventional design polarized onlookers, with fans describing it as futuristic and daring and critics saying it looked like something out of a primitive video game. Some wondered what its sharp corners might do to pedestrians in a crash. Yet the Cybertruck has attracted more than 500,000 non-binding preorders, according to Musk. It will come with up to four motors and will offer up to 500 miles of range, according to Tesla. Tesla initially said the Cybertruck will start at $39,990, but it recently removed the truck's pricing and specs from its website. Musk said in October that Tesla will likely start building the Cybertruck at the end of 2022 and begin mass production in 2023. In November he said he'll give an update about the Cybertruck early next year. RoadsterTesla Roadster.TeslaWhen Tesla revealed the new Roadster in 2017 — aiming for a 2020 launch date — Musk said it "will be the fastest production car ever made, period."Tesla claims the four-seat supercar will sprint to 100 mph in 4.2 seconds on its way to a top speed of more than 250 mph. According to the EV maker, the Roadster will be able to travel 620 miles on a charge — farther than any EV on the market today. Musk has also said he wants to equip the Roadster with compressed-air rocket thrusters to boost acceleration and, potentially, give it the ability to hover short distances. Needless to say, a flying Tesla probably won't fly with regulators. The new Roadster is priced starting at $200,000. Recently, Musk blamed the Roadster's delays on "super crazy supply chain shortages" and said the supercar should start shipping in 2023, "assuming 2022 is not mega drama."SemiTesla Semi.TeslaLike the Cybertruck and Roadster, the Tesla Semi — the carmaker's class 8 truck — has remained in vehicle-development purgatory since it was announced in 2017. Tesla initially eyed 2019 for the big rig's launch, but has pushed that date multiple times.In October, Musk said he was optimistic that the Semi will be in production in 2023. The Semi requires too many battery cells and computer chips to start building at scale before then, Musk said. Over the years, the prospect of a battery-powered tractor-trailer has attracted lots of attention from major retailers and shippers eager to spend less on fuel and maintenance. PepsiCo, Walmart, Anheuser Busch, UPS, and FedEx have all placed reservations for the Semi, which Tesla expects will cost $180,000 for a model with 500 miles of range.Confusingly, the CEO of PepsiCo recently said the company expects to receive its first batch of trucks this year, but Musk told his Twitter followers: "Please don't read too much into this."$25,000 carElon Musk announces a future $25,000 EV at Tesla's Sept. 22 "Battery Day" event.Tesla on YouTubeAt Tesla's company's Battery Day event in September 2020, Musk promised that a $25,000, fully autonomous Tesla would hit the market "about three years from now." Musk has admitted himself that punctuality isn't his strong suit, so it's fair to take that timeline with a grain of salt. Still, Tesla appears to be making headway on the plans. The company aims to complete a research and development center in China that will develop the budget EV by the end of 2021, Tesla China President Tom Zhu said in a February interview with Chinese media. The upcoming model is colloquially referred to as the Model 2 in enthusiast circles, but Musk recently said it'll go by a different name. That narrows it down. CyberquadTesla Cybertruck and Cyberquad.Ringo H.W. Chiu/Associated PressThe Cyberquad hit the scene as a last-minute, surprise announcement during Tesla's Cybertruck unveiling. We haven't heard much about it since, but Tesla did release a $1,900 kiddie version of it just in time for the holidays. (It sold out quickly.)Tesla hasn't discussed pricing, a launch date, or any specs. But some sleuthing by automotive journalist Bozi Tatarevic appears to have uncovered that the Cyberquad — at least the one shown during the Cybertruck event — shares a platform with the gas-powered Yamaha Raptor ATV. Musk has said Tesla is aiming to roll out the two-person electric ATV at the same time as the Cybertruck, and that the quad will at first be available as an option for the pickup. VanA rendering of what a Tesla delivery van could look like.LeaseFetcherMusk has floated the idea of a Tesla van more than once, most recently during a February interview on Joe Rogan's podcast in which he said it's possible the EV will have an array of solar panels on it. Before that, Musk said on a conference call in January that it plans to build a van "at some point," but that it's been held back by a lack of battery cell supply. It's possible that a future high-capacity Tesla would be used to shuttle passengers along networks of subterranean roadways built by The Boring Company, a tunneling firm that Musk also runs. A San Bernardino County transportation official let it slip in June that the county is working with Tesla on a 12-person van for a future Boring tunnel there, but Tesla hasn't officially announced any such vehicle. Read the original article on Business Insider.....»»

Category: smallbizSource: nytDec 28th, 2021

Futures Ramp Above 4,700 On Growing Omicron Optimism

Futures Ramp Above 4,700 On Growing Omicron Optimism If you had gone to bed on Thanksgiving after eating a little too much tryptophan and only woken up today, roughly one month later, you would have completely avoided a rollercoaster move in global markets, and much of the omicron panic, with the S&P now trading precisely where it was the night before scattered reports of Omicron in South Africa sparked a global selloff. As of 730am, e-mini S&P futures were trading at exactly 4,700, up 14 points or 0.3% - and once again less than 1% from all time highs - on rising hopes the omicron variant won’t impact global growth even as officials remain cautious about its spread, after studies showed it’s less severe than other strains; Dow Jones futures also rose 0.3% while Nasdaq 100 futures were 0.2% higher. US Treasury yields rose, the 10Y trading at 1.475%, while the USD index traded flat. The  pound rose as traders stepped up bets on a Bank of England rate hike. Soaraing European natural gas prices plunged more than 20% as this year’s rally attracted a flotilla of U.S. cargoes, helping offset lower flows from Russia. U.S. stocks reversed a sharp drop earlier in the week, advancing over the past two days amid signs the omicron variant won’t thwart growth, with consumer confidence rising by more than expected in December. Pfizer Inc.’s Covid-19 pill gained clearance for emergency use in the U.S. on Wednesday and three studies showed omicron appears less likely to land patients in the hospital than the delta strain, fueling optimism.  Adding to the positive newsflow on omicron, lab results indicated a third dose of AstraZeneca Plc’s vaccine significantly boosted antibodies against the strain, and Pfizer Inc.’s Covid-19 pill gained clearance for emergency use in the U.S. “Markets hate uncertainty and not knowing, and when omicron hit the markets, we didn’t know,” Carol Schleif, BMO Family Office deputy chief investment officer, said on Bloomberg Television. “But it seems like it’s edging toward something more positive.” A gauge of global stocks is up more than 2% so far this month, leaving the index 15% higher for the year and on course to surpass 2020’s gain. In U.S. premarket trading, Tesla Inc. shares rose after Chief Executive Officer Elon Musk sold down more of his stake. Nikola gained after the electric-vehicle startup said that more deliveries were to come. Here are some other notable premarket movers today: Novavax (NVAX US) shares jump 5% in U.S. premarket after the biotech firm said that both a vaccine booster dose as well as an omicron-specific shot may be beneficial in helping to protect against the Covid-19 variant. Nikola (NKLA US) rises 3.5% in U.S. premarket trading after the electric-vehicle startup said on Twitter that more deliveries were to come, posting photos of a previous event. Tesla (TSLA US) shares gain 1.1% in U.S. premarket trading after CEO Elon Musk sells down more of his stake, drawing nearer to his pledge of cutting his stake in the EV maker by 10%. JD.com’s (JD US) ADRs slump 9.2% in U.S. premarket trading after Tencent said it plans to hand out more than $16 billion of JD.com shares to its investors as a one-time dividend. SciPlay (SCPL US) the maker of mobile and web games such as Jackpot Party Casino, falls 17% in premarket after ending talks to sell out to majority owner Scientific Games. Shares in tiny biotech stocks soar in U.S. premarket trading in strong volume, amid broad risk-on appetite thanks to positive omicron variant studies, ahead of the holiday period. “Our outlook for the global economy remains positive, but we have preference on developed markets,” Janet Mui, director of investment at Brewin Dolphin Limited, said in an interview with Bloomberg TV. “The economic recovery will continue in the major economies like the U.S., U.K. and the Euro area, thanks to the very high vaccination rates and ongoing rollout of the booster jabs.” Elsewhere, European shares advanced for a third day, with travel shares leading gains. The Euro Stoxx 50 rose 0.6%; travel is the strongest sector with recent studies showing omicron appears less likely to land patients in the hospital than the delta strain. IBEX leads with a 1% gain. Travel and leisure was the top-performing sector in Europe on Thursday amid optimism of fewer hospitalizations linked to the omicron variant of Covid-19. Airlines shruged off a profit warning from Ryanair (+1.1%) that was first reported late in the trading session on Wednesday. British Airways-owner IAG adds 3.7%, Wizz +3.3%, hotelier Whitbread +2.6%, Deutsche Lufthansa +2%, caterer Sodexo +0.8%. Stoxx travel and leisure index also helped by Flutter (+3%) which gains following M&A news Earlier in the session, Asian stocks were on track to gain for a third straight day, bolstered by signs the omicron strain is less severe than previous variants. Tech and communication services sectors led the advance. The MSCI Asia Pacific Index climbed as much as 0.9%, with Tencent as the biggest contributor to gains after a 4.2% rally in Hong Kong. The Chinese internet giant declared a one-time dividend in the form of JD.com’s shares worth more than $16 billion, causing the latter’s stock to plunge intraday by the most on record. Sentiment in Asia improved as a trio of studies found that the omicron variant led to lower hospitalization risk than the delta strain, and Pfizer Inc.’s Covid-19 pill gained clearance for emergency use in the U.S. Separately, lab results indicated a third dose of AstraZeneca’s vaccine significantly boosted antibodies against the strain though another study released late in the Asia day found that three doses of Sinovac’s vaccine weren’t enough to protect against it. “We expect Asian equities to improve their relative performance in 2022 given less demanding valuations and prospects for solid earnings growth,” said Tai Hui, Asia chief market strategist at JPMorgan Asset Management. “Reflation and economic reopening could help to boost earnings expectations for cyclical sectors, especially those focusing on domestic demand.” The MSCI Asia Pacific Index is down almost 4% for the year compared with a 25% gain in the S&P 500 Index, which is trading close to a record high.  Equity benchmarks in the Philippines, Malaysia and Thailand were among the top gainers amid a broad advance in the region Thursday even as trading volumes were thin ahead of the Christmas holidays. Japan stocks also rose as the country looks set to unveil another record annual budget this week. Shares in China also rose even as the country locked down the western city of Xi’an to stamp out a persistent virus outbreak. Equities slumped in Vietnam as Covid-19 cases continued to rise. In rates, fixed income is thin with only ~100k bund futures contracts trading as of 10:50am London. Cash space is under small pressure: bunds and USTs bear steepen, gilts bear flatten with short dates ~5bps cheaper. 10-year TSY yields were around 1.47%, with gilts notably underperforming and are cheaper by around 3bp in the sector vs. Treasuries; curves are steady with U.S. cash spreads broadly within a basis point of Wednesday close. Treasuries drifted lower into early U.S. session as S&P futures grind higher. 10-year futures remained inside Wednesday session lows with yields cheaper by up to 2bp across long-end of the curve. Thursday’s highlights include a packed data slate, and cash markets are due for an early 2pm ET close ahead of Friday’s full closure. In FX, tge Bloomberg dollar index chopped either side of flat. The pound was the stand out mover in London hours, topping the G-10 leaderboard with cable regaining a 1.34 handle. USD/JPY was little changed as it holds above 114. Aussie dollar drifts back towards 0.72 against the greenback. Bloomberg Dollar Spot Index is steady after falling for three days. In commodities, crude futures are little changed; WTI trades near $72.70. Spot gold is rangebound, holding just above $1,800/oz. Most base metals are in the green, drifting higher in quiet trade. LME copper and tin lag. European natural gas prices plunged more than 20% as this year’s rally attracted a flotilla of U.S. cargoes, helping offset lower flows from Russia. Looking at today's calendar, we get personal spending and income as well as a new look at inflation data, including the Fed’s preferred price measure -- the change in the core personal consumption expenditures price index -- and jobless claims. We also get the latest Durable goods orders, UMichigan sentiment and new home sales prints. Market Snapshot S&P 500 futures up 0.1% to 4,692.00 STOXX Europe 600 up 0.4% to 480.16 German 10Y yield little changed at -0.28% Euro little changed at $1.1317 MXAP up 0.9% to 192.23 MXAPJ up 0.8% to 623.33 Nikkei up 0.8% to 28,798.37 Topix up 0.9% to 1,989.43 Hang Seng Index up 0.4% to 23,193.64 Shanghai Composite up 0.6% to 3,643.34 Sensex up 0.7% to 57,350.50 Australia S&P/ASX 200 up 0.3% to 7,387.57 Kospi up 0.5% to 2,998.17 Brent Futures down 0.4% to $74.99/bbl Gold spot up 0.2% to $1,807.61 U.S. Dollar Index little changed at 96.16 Top Overnight News from Bloomberg The highly-mutated omicron variant appears less likely to land patients in the hospital with Covid-19 than the delta strain, according to preliminary data from a trio of studies France reported a jump in Covid-19 infections as the fast-spreading omicron variant tightens its grip on Europe The Chinese yuan is having a greater impact on its emerging-market counterparts than ever before and may play a crucial role in determining their performance in the coming year New Prime Minister Fumio Kishida’s rhetoric of distributing wealth more equally appears to signal a change of priorities for post-pandemic Japan that may run counter to plans to improve the country’s presence as an international financial hub Oil settled at the highest level in nearly a month after U.S. crude stockpiles decreased and economic data pushed equities higher A more detailed look at global markets courtesy of Newsquawk Asia-Pac equities traded modestly higher amid some tailwinds from Wall Street in holiday-thinned trade and the absence of fresh catalysts. The US majors closed in the green across the board, with the S&P 500 and Nasdaq propelled higher by Tesla shares which jumped 7.5% to regain USD 1tln market cap. US equity futures resumed trade relatively flat with an upside bias. In APAC, the ASX 200 (+0.3%) was supported by its gold miners following the recent gains in the yellow metal. Japan’s Nikkei 225 (+0.6%) was underpinned by its mining names, while South Korea’s KOSPI (+0.2%) saw gains in Tech mostly offset by losses in Autos. The Hang Seng (+0.3%) and Shanghai Comp (+0.2%) quickly dipped at the open into modest negative territory but later recovered. The overnight focus was on Tencent declaring an interim dividend payable in JD.com shares – which would reduce Tencent's holding of JD to about 2.3% vs prev. nearly 17% reported earlier this month. JD.com shares extended downside in early trade to losses of over 10%, whilst Tencent rose over 3%. US 10yr Treasury futures traded with no firm direction overnight despite the mild positivity seen across APAC stocks, with the debt now looking ahead to the November PCE report. Top Asian News Asian Stocks Head for Third Day of Gains as Tencent Shares Rally Alibaba-Backed RoboSense Said to Pick JPMorgan for Hong Kong IPO Foreigners Haven’t Finished Selling India Stocks: Street Wrap Asia Traders Are Most Bullish Stocks, Europe Least: Markets Live European bourses are firmer in very thin trading conditions, with a distinct holiday-feel setting in. News flow has been minimal, and remains focused on the familiar themes of Omicron and geopolitics. The Euro Stoxx 50 trades around +0.5%, after a constructive handover from Asia, although there are some very modest regional discrepancies. Sectors are predominantly in the green, with the likes of Travel & Leisure, Oil & Gas, and Autos benefitting from the generally constructive tone of news flow around Omicron. US futures are firmer, though the magnitude is limited, and benchmarks have essentially been in a holding pattern since the US cash close on Wednesday. Top European News Spain Revises GDP Growth Sharply Higher After Data Doubts Traders Ramp Up BOE Bets to See Key Rate at 1.25% Next Year U.K. PM Not Expected to Announce Post-Xmas Curbs This Week: Sky Pound Reaches One-Month High After BOE Rate Hike Bets Increase In FX, in stark contrast to this time yesterday, the Dollar index is trying to grind higher from a fractionally firmer base between 96.018-199 parameters, though well below Tuesday’s range amidst an ongoing improvement in overall risk sentiment based on the latest Omicron analysis. In short, studies continue to find lower hospital admissions and generally less acute symptoms even though the mutation is more virulent, while the current batch of vaccines provide varying degrees of protection and new drugs designed specifically for the new strain are in the pipeline. On the fundamental front, the final full trading day before the Xmas break contains some potential market-moving US data, including the Fed’s preferred inflation measure, core PCE, plus jobless claims, new home sales and the often volatile durable goods. NZD/GBP/AUD - The Kiwi, Pound and Aussie have all picked up where they left off on Wednesday, with impetus from the aforementioned positive market tone allied to increasingly bullish technical impulses. Indeed, Nzd/Usd didn’t encounter much in the way of psychological resistance at 0.6800, while Sterling has breached 1.3350 more emphatically to expose/probe 1.3400 and Aud/Usd overcame any sentimentality that might have hampered its progress beyond 0.7200. Cable has also advanced with the aid of Eur/Gbp tailwinds as the cross approaches 0.8450 following sell orders above, and an element of relief after reports suggesting that UK PM Johnson is now likely to hold off from making any further decisions on pandemic measures until after Xmas. Back down under, some good news for the Aussie via a pickup in private sector credit and loans for housing. CAD/EUR - Both narrowly mixed vs their US counterpart, but the Loonie has extended its rebound towards 1.2800 in advance of Canadian monthly GDP and average weekly earnings, while the Euro is forming a firmer base on the 1.1300 handle as EGBs continue to underperform/outperform in futures and cash terms respectively. However, Eur/Usd topped out around 1.1341/2 again and may be wary of decent option expiry interest between 1.1330-40 in 1.3 bn as much as 1.6 bn rolling off at 1.1300-05. CHF/JPY - The Franc and Yen are still lagging on risk factors and their carry characteristics, with the former unable to sustain advances through 0.9200 against the Buck and the latter failing to overcome offers/resistance into 114.00. Hence, Usd/Jpy remains poised for more attempts to scale the next Fib retracement at 114.38 in the run up to Japanese inflation data and post-remarks from BoJ Kuroda who adhered to pretty standard lines on currency matters. To recap, he repeated that FX rates must move in a stable fashion and reflect economic fundamentals, while the negative impact of a weak Jpy on Japanese household income may be increasing, though the benefits outweigh the demerits. In commodities, crude benchmarks continue to see modest pressure that crept in during APAC trade; Brent is pivoting USD 75.00/bbl, with losses of circa USD 0.30/bbl. News flow has been minimal. Russia’s President Putin is making some geopolitical noises, although he is largely reiterating familiar themes. Elsewhere, Exxon’s (XOM) Baytown complex (560k BPD capacity) in Texas reported a fire at a gasoline component processing unit; reports thus far indicate no facility impact from this incident. Moving to metals, spot gold and silver remain contained as the yellow metal holds onto the USD 1800/oz mark it reclaimed amid USD weakness in APAC hours. While base metals are firmer but again within familiar ranges. Russian President Putin says Russia meets gas supply obligations under long-term deals, prior to providing gas to spot markets; adds that Gazprom has not booked gas via the Yamal-Europe line due to a lack of requests, pipeline in reverse mode. Europe has created its own gas problems, should resolve this themselves; are prepared to assist.Germany is selling Russian gas to Poland, think it ends up in Ukraine. Exxon (XOM) Baytown complex (560k BPD capacity) in Texas has reported a fire at the facility, according to the community alert system; Some injuries have been reported following a 'major industrial accident' at the Exxon (XOM) Baytown complex (560k BPD capacity) in Texas, via the Harris County Sheriff - No reports to evacuate/shelter in place after the fire. Based on current information, no adverse impact. US Event Calendar 8:30am: Dec. Initial Jobless Claims, est. 205,000, prior 206,000; Continuing Claims, est. 1.84m, prior 1.85m 8:30am: Nov. Personal Income, est. 0.4%, prior 0.5% Personal Spending, est. 0.6%, prior 1.3% 8:30am: Nov. PCE Deflator MoM, est. 0.6%, prior 0.6%; YoY, est. 5.7%, prior 5.0% PCE Core Deflator MoM, est. 0.4%, prior 0.4%; YoY, est. 4.5%, prior 4.1% 8:30am: Nov. Durable Goods Orders, est. 1.8%, prior -0.4% Durables-Less Transportation, est. 0.6%, prior 0.5% Cap Goods Orders Nondef Ex Air, est. 0.7%, prior 0.7% Cap Goods Ship Nondef Ex Air, est. 0.6%, prior 0.4% 10am: Nov. New Home Sales MoM, est. 3.3%, prior 0.4% 10am: Dec. U. of Mich. Sentiment, est. 70.4, prior 70.4 Current Conditions, prior 74.6 Expectations, prior 67.8 1 Yr Inflation, est. 4.9%, prior 4.9%; 5-10 Yr Inflation, prior 3.0%; 10am: Nov. New Home Sales, est. 770,000, prior 745,000 Tyler Durden Thu, 12/23/2021 - 08:06.....»»

Category: blogSource: zerohedgeDec 23rd, 2021

Stocks, Yields Tumble As Quad-Witching Fears Add To Broader Market Slide

Stocks, Yields Tumble As Quad-Witching Fears Add To Broader Market Slide US futures tumbled after hitting an all time high less than 24 hour ago, as the favorable if paradoxical bounce in risk from the hawkish FOMC pivot faded from memory and as investors questioned whether global stocks are due for a rough ride on the backdrop of growing risks from inflation and the omicron virus variant. S&P 500 futures slumped about 0.5% Friday morning, while the U.S. 10-year Treasury yield fell for a second straight day to 1.394%, the lowest since Dec. 6. Futures were dragged down by tech stocks as volatility surged amid mounting concerns about monetary tightening and the omicron coronavirus variant. “Rates hikes do not end bull markets, but reversal of central banks’ liquidity means less speculative froth and more volatility,” said Barclays strategist Emmanuel Cau. “Policy angst may be here to stay, but following months of unclear guidances and conflicting signals, the direction of travel is clear now.” Investors are also bracing for the quarterly rebalancing of the S&P 500 Index after the market close and the triple witching expiration of equity derivatives that could magnify market moves. General Motors dropped in premarket trading after the company said Cruise unit Chief Executive Officer Dan Ammann is leaving the company.  Here are some of the other notable premarket movers today: Tesla (TSLA US) shares fall as much as 2.4% in U.S. premarket trading as CEO Elon Musk sells another chunk of shares in the electric vehicle maker. FedEx (FDX US) boosted its adjusted earnings-per-share forecast for the full year, with the guidance beating the average analyst estimate. Shares rose about 4.8% in premarket trading. Spruce Biosciences (SPRB US) shares soar as much as 30% in U.S. premarket trading after Oppenheimer initiated coverage with an outperform rating and a $15 price target that implies 500% upside in the stock from Thursday’s closing price. Cerner (CERN US) shares rise 17% in U.S. pre- trading hours amid a report that Oracle is in talks to buy the medical-records company for about $30b. Rivian Automotive (RIVN US) shares slump 9% in U.S. premarket trading after the electric pickup maker reported results. Piper Sandler says that after- hours share-price loss is “noise,” and remains positive following earnings call. General Motors (GM US) dropped postmarket after it said Cruise Chief Executive Officer Dan Ammann is leaving the company. Steelcase (SCS US) declined in the after hours session after the furniture company reported 3Q revenue that missed the average analyst estimate due to supply chain disruptions. U.S. Steel Corp. (X US) shares declined premarket after it warned fourth-quarter results will be lower than Wall Street had been expecting. In Europe, technology companies and carmakers were among the worst-performing industries, dragging the Stoxx Europe 600 Index down 1%. Tech, autos and utilities are the weakest sectors. Miners and travel are the only Stoxx 600 sectors in small positive territory.  Cellnex slumped 4.1% to a six-month low after a British regulator said the Spanish company’s purchase of CK Hutchison Holdings’s European telecommunication towers raised “significant” competition concerns. Asian stocks slid, as a risk-off mode resumed amid concerns over tighter monetary policies and ongoing tensions between the U.S. and China. The MSCI Asia Pacific Index dropped as much as 1%, set for the fifth decline over the past six days. Technology shares around the region took a hit, led by Chinese giants including Tencent and Alibaba Group, as a global sector selloff continued on higher rate fears. China was among the region’s worst performers after the Biden administration added 34 Chinese targets to its banned-entity list, weighing on sentiment. Japanese stocks held their losses after the Bank of Japan lengthened its cautious withdrawal from emergency pandemic aid. Asia’s benchmark was set to cap a more than 1% slide this week as central banks around the world attempt to curb inflation, dampening prospects for the usual year-end rally. The Federal Reserve plans to double the pace of its asset-tapering program and the Bank of England hiked interest rates, prompting investors to edge away from riskier assets. “I expect the choppy price action to continue to spoof fast-money players into the year-end, both in the U.S. and elsewhere,” said Jeffrey Halley, a senior market analyst at Oanda. In Australia, the S&P/ASX 200 index rose 0.1% to close at 7,304.00, snapping a three-day losing streak. Material and energy shares led the advance on the back of strong commodity prices. Gold miner Norther Star was the best performer on the benchmark. Domain Holdings was the worst performer, followed by Afterpay, after the U.S. government said it launched a regulatory probe into buy now, pay later companies. In New Zealand, the S&P/NZX 50 index fell 0.5% to 12,717.94 In rates, treasuries were mixed with the yield curve flatter as U.S. trading begins, retracing a portion of Thursday’s bull-steepening move that unfolded as futures further marked down likelihood of Fed rate increases beyond mid-2022. Yields out to the 10-year are within 1bp of Thursday’s closing levels, with longer maturities lower by 1bp-2bp; 5s30s is flatter by ~2bp after steepening 7.2bp Thursday, remains ~4bp steeper on week. Yields remain lower on week led by the 5Y, which declined 8.1bp Thursday.  Bunds bull flatten a touch, long-end richer by ~2bps, brushing off some hawkish comments from ECB’s Muller. Peripheral spreads tighten slightly. Gilts are bear steeper, cheaper by 2.5bps at the back end. In FX, the Bloomberg Dollar Spot Index was steady and the greenback was mixed versus its Group-of-10 peers, with most currencies confined to narrow ranges. Treasury yields rose by up to 2bps, led by the belly. The euro was flat at $1.1330 and bund yields were little changed. The pound steadied amid seasonal flows into the dollar and as the boost from Thursday’s surprise Bank of England rate hike wore off. U.K. retail sales last month rose 1.4% from October, when they grew a revised 1.1%, the Office for National Statistics said. Economists had expected an increase of 0.8%. Sales excluding auto fuel grew 1.1%. The yen edged higher on concerns about the risk that eventual draw-down in central bank liquidity could trigger a reversal in the rally. Japanese government bonds were in ranges as they shrugged off the Bank of Japan’s status quo outcome. Australian and New Zealand dollar led G-10 declines as falling stocks and mounting virus numbers sapped demand for risk currencies. Turkish lira once again goes sharply offered, briefly weakening over 9% to print through 17/USD before further central bank intervention. In commodities, WTI dropped 1.5%, holding above $71 so far; Brent trades slips below $74. Spot gold holds Asia’s gains, near $1,804/oz. Base metals are in the green with LME tin outperforming. Bloomberg’s Markets Live team is running an anonymous survey on asset views for 2022. It takes about two minutes and the results will be shared in the latter part of December. Looking at the day ahead, data releases include Germany’s Ifo business climate indicator for December, as well as November data on German PPI and UK retail sales. From central banks, we’ll also hear from the Fed’s Waller and the ECB’s Rehn. Market Snapshot S&P 500 futures down 0.8% to 4,635.00 MXAP down 0.9% to 191.41 MXAPJ down 0.8% to 618.58 Nikkei down 1.8% to 28,545.68 Topix down 1.4% to 1,984.47 Hang Seng Index down 1.2% to 23,192.63 Shanghai Composite down 1.2% to 3,632.36 Sensex down 1.5% to 57,011.01 Australia S&P/ASX 200 up 0.1% to 7,303.97 Kospi up 0.4% to 3,017.73 STOXX Europe 600 down 0.6% to 473.64 German 10Y yield little changed at -0.36% Euro little changed at $1.1330 Brent Futures down 1.4% to $73.99/bbl Gold spot up 0.5% to $1,808.56 U.S. Dollar Index little changed at 95.98 Top Overnight News from Bloomberg Boris Johnson suffered a seismic political upset as his ruling Conservatives lost a key parliamentary election, a result that will heap intense pressure on the U.K. prime minister and may even call his position into question Leading central banks made a big call this week, deciding that the coronavirus is no longer calling the shots in their economies, and inflation is now the bigger threat Bank of France Governor Francois Villeroy de Galhau said the difference between the new forecast for 1.8% inflation in 2023 and 2024 and the ECB’s 2% target is within the “margin of uncertainty.” In a Bundesbank report showing German inflation will run above 2% through 2024, Jens Weidmann urged vigilance as he sees “risks to the upside” throughout the currency bloc ECB Governing Council member Olli Rehn said “there’s considerable uncertainty about the path which inflation will take” Germany’s main gauge of business expectations slipped to 92.6 in December, falling for a sixth month, according to the Ifo institute. That’s a bigger decline than predicted by economists in a Bloomberg survey. Current conditions were also assessed as weaker than in November EU leaders failed to reach a deal on how to react to the unprecedented gas crisis that sent energy prices to record levels after Poland and the Czech Republic demanded stronger action to cap the costs of pollution A more detailed look at global markets courtesy of Newsquawk Asian equity markets were mostly lower with sentiment in the region downbeat after the tech-led declines in the US and yesterday’s central bank frenzy. Overnight US equity futures held a downside bias. The ASX 200 (+0.1%) traded positively amid notable outperformance in the commodity-related sectors which was spearheaded by gold miners as the precious metal reclaimed with the USD 1800/oz level and with sentiment also helped by the announcement of a UK-Australia trade deal. The Nikkei 225 (-1.8%) was the biggest laggard as exporters suffered from detrimental currency inflows and following the BoJ announcement to scale back its pandemic relief measures in March. The Hang Seng (-1.2%) and Shanghai Comp. (-1.2%) were lacklustre after further restrictive measures by the US on Chinese companies including the passage of the Uyghur bill aimed at China which bans imports from Xinjiang unless the US government determines they were not produced with forced labour, while tech suffered after the US included several Chinese companies to its investment and trade restrictions lists. Finally, 10yr JGBs were flat despite the steepening seen in the US and underperformance of Japanese stocks, with demand subdued amid the BoJ decision to scale back pandemic relief measures. Top Asian News Japan Expedites Virus Boosters for Some as Omicron Looms Hong Kong Stock Exchange to Allow SPAC Listings Next Month Thailand May Impose Stock-Trading Tax to Lift Government Revenue Asian Stocks Drop as Worries on Global Policy Tightening Linger European equities have succumbed to the weakness seen on Wall Street and across most APAC markets (Euro Stoxx 50 -1.1%; Stoxx 600 -0.6%) as global central banks turn hawkish and Quad Witching gets underway in holiday-thinned liquidity. US equity futures have also drifted lower, with the March 2022 contracts softer to the tune of 0.1-0.3% across the ES, NQ, YM and RTY. On the recent central bank pivots, analysts at Barclays suggest that rate hikes do not end bull markets, but reduced liquidity means “less speculative froth”. Barclays sees persisting inflation as a risk to markets and Omicron as an increasing downside risk to European growth, albeit the impact is contained thus far. Back to trade, Eurozone bourses see broad-based weakness whilst the UK’s FTSE 100 (+0.2%) holds its head above water – aided by outperformance in the basic materials sector and a softer Sterling. Overall sectors kicked off the day with a defensive bias, albeit that theme has since faded, with some cyclicals making their way up the ranks. Sectors are mostly in the red, however. Auto names are the laggards, with European car registrations -17.5% in November (prev. -30% MM). Tech also resides towards the bottom amid outflows from growth, and with the hefty valuations state-side also stoking some concerns. Chip names are also hit amid news Apple (-0.8% pre-market) is reportedly planning to build a new office to bring wireless chips in-house which may replace parts from Broadcom and Skyworks. STMicroelectronics (-3%), ASM (-2.4%), BE Semiconductor (-2.6%) are among the biggest losers in the Stoxx 600. Top European News European Gas Plunges After Russia Books Pipeline at Last Minute Stellantis Revamps Auto-Finance Business With BNP, Santander Cellnex Drops Most in 11 Months on CK Hutchison Deal Woes Johnson Suffers Humiliating Defeat in U.K. Special Election In FX, it feels like Friday fatigue has set in and markets are already in weekend mode as the Greenback sticks to relatively tight lines against most G10 peers and the index holds close to the 96.000 level within a narrow 96.118-95.875 band. Consolidation and sideways price action is hardly a surprise given this week’s extremely volatile trade on a combination of thin seasonal volumes and the abundance of final global Central Bank policy meetings for the year all scheduled within a few days. However, the Dollar and a few of its key counterparts may also be tied up in option expiry interest that ranges from large to huge in certain cases, awaiting comments from Fed’s Waller as the first official post-FOMC speaker. CHF/EUR/GBP/JPY - The Franc remains above 0.9200 vs the Buck and is testing 1.0400 against the Euro again in wake of an unchanged SNB yesterday, while the single currency is holding above 1.1300 vs the Greenback even though Germany’s latest Ifo survey was downbeat and perhaps underpinned by hawkish remarks from ECB’s Simkus and Muller over the comparatively neutral/dovish Rehn. Elsewhere, Sterling retains an element of its post-BoE hike momentum, but not enough for Cable to breach the 30 DMA that comes in at 1.3344 today or stay above a Fib retracement at 1.3321 irrespective of Chief Economist Pill expressing the view that further tightening is likely. Conversely, the BoJ stuck to its dovish stance and balanced the termination of corporate and commercial QE by extending the COVID-19 funding facility for SMEs another 6 months, to leave the Yen meandering between 113.86-44, though nearer 113.50 amidst the latest bout of risk aversion. Note also, Usd/Jpy will likely be contained by a swathe of option expiries stretching from 113.00 up to 114.50 and the same can be said for Eur/Usd and the Pound given the sheer size of interest at various strikes rolling off today - see 7.24GMT post on the Headline Feed for details. NZD/AUD/CAD - A further deterioration in NBNZ business outlook and decline in own activity have compounded the aforementioned downturn in overall sentiment to the detriment of the Kiwi more than Aussie or Loonie that is feeling the heat from renewed weakness in WTI crude. Hence, Nzd/Usd is nearer 0.6750 than 0.6800, while Aud/Usd is hovering within a 0.7185-53 range and Usd/Cad sits just above 1.2800. In commodities, WTI and Brent futures have been trundling lower in tandem with risk appetite – with WTI Jan closer to USD 71/bbl (vs high USD 72.26/bbl) whilst Brent Feb resides under USD 73/bbl (vs high USD 74.98/bbl). The morning did see updates on the Iranian nuclear front whereby sources suggested the parties in the Vienna talks have been able to reach a new draft by incorporating Iran's views, which, if finalised, will be the basis for upcoming talks. Although nothing is yet set in stone, this is much more constructive than had been the case this time last week. Further, the oil complex juggles the fluid COVID situation as the steeper rise in global cases backs the notion of stricter measures. That being said, reports thus far continue to suggest the lower severity of the Omicron variant. Analysts at Goldman Sachs said Omicron hasn't had much of an impact on mobility and oil demand, while it sees strong oil demand in 2022 from rising CAPEX and infrastructure construction. Furthermore, it stated that average oil demand is to hit record highs in 2022 and 2023. Elsewhere, spot gold remains firm after topping the group of DMAs yesterday (21 at 1787, 100 at 1788, 200 at 1794 and 50 at 1798) alongside the USD 1,800/oz mark. LME copper hovers around the USD 9,500/t mark awaiting the next catalyst, whilst Dalian iron ore continued to gain overnight with traders citing a recovery in steel demand. US Event Calendar No economic events 1pm: Fed’s Waller Discusses the Economic Outlook DB's Jim Reid concludes the overnight wrap Well this is my last EMR of 2021. Henry will be in charge on Monday and Tuesday of next week but by then I’ll be catching up on sleep to prepare myself for the onslaught of Xmas with three hyper excitable kids. Thanks for all your support and interactions over the past year. Hopefully you’ll continue to read in 2022. Try to have as exciting a holiday season as the virus permits and see you on the other side. As I have done most years, at the end today I’m listing my favourite TV series and films of the year. I used to do favourite albums of the year but I’m ashamed to say that the person who used to buy a few hundred albums a year and try out all sorts of new music has turned into someone who listens to playlists and old albums. All a bit dull. The odd film and lots of TV continues to keep me sane after a day working in financial markets. So I hope you enjoy the countdown. Talking of countdowns, yesterday was probably the last active market day of the year with a slew of Central Bank activity over the last 36 hours. However the FOMC-inspired risk rally peaked out by lunchtime in Europe and the S&P 500 eventually shed -0.87% amidst significant declines in technology stocks (Nasdaq -2.47%). Meanwhile there was continued caution about the Omicron variant among investors, as many of the key economies await a fresh wave of cases over the coming weeks. We’ll start with the ECB, who yesterday said that they would be ending net asset purchases under their Pandemic Emergency Purchase Programme (PEPP) at the end of March 2022, and that purchases over Q1 would be “at a lower pace than in the previous quarter”. Nevertheless, they also moved to soften the blow by confirming a step up in purchases by the Asset Purchase Programme (APP) to €40bn a month in Q2 2022, followed by a reduction to €30bn in Q3, and then €20bn a month from October “for as long as necessary to reinforce the accommodative impact of its policy rates.” They also said that they expected net purchases would conclude “shortly before it starts raising the key ECB interest rates.” Overall this was a somewhat hawkish decision (see European economists’ recap here), since although APP purchases will be increasing, those volumes are fixed and will taper out, whilst expectations were that the ECB may retain more flexibility with the APP. That flexibility seems confined to PEPP reinvestments, which will grant policy optionality as the inflation outlook remains uncertain. That said, it seems like the ECB communicated a set path for policy during 2022, with rate hikes not coming until 2023, according to our economists. Sovereign bond yields ended the day higher across most of the continent, although they gave up some of that increase towards the close, with those on 10yr bunds (+1.1bps), OATs (+2.2bps) and BTPs (+5.5bps) all rising. However, some shorter-dated yields did move lower, with those on 2yr bunds (-1.3bps) and OATs (-0.2bps) declining. When it comes to the ECB’s inflation forecasts, these were upgraded yet again, with the central bank now expecting 2022 inflation at +3.2% (vs. +1.7% in September), whilst their 2023 and 2024 projections now stand at +1.8%. However, the 2023 and 2024 projections are still beneath the ECB’s 2% target, and in their forward guidance they’ve said that they wouldn’t raise raises until inflation was seen reaching the target “durably for the rest of the projection horizon”, so even with the upgrade to 2023 they’re still forecasting inflation beneath target then. The other central bank decision came from the BoE yesterday, who hiked rates by 15bps to 0.25%. The consensus had been expecting them to keep rates on hold given the Omicron variant, hence the decision came as something of a surprise to markets, although we should say that DB’s own UK economist made an out-of-consensus but accurate call for a 15bps hike. In the minutes, the decision was described as “finely balanced” due to the uncertainty around Covid, but an 8-1 majority on the MPC voted in favour, and Governor Bailey said afterwards in a BBC interview that “We’ve seen evidence of a very tight labour market and we’re seeing more persistent inflation pressures, and that’s what we have to act on”. It comes as inflation has continued to surpass the BoE’s own forecasts, and the summary of the latest meeting said that Bank staff were now expecting inflation to peak “around 6% in April 2022”, up from its current level of 5.1%. Given the decision came as a surprise to many, there was a sharp rise in gilt yields in response, with those on 10yr gilts initially up +10bps before following the global bond rally which meant we only closed up +2.2bps to 0.75%. That move was entirely driven by higher real rates, and the 10yr inflation breakeven fell -5.5bps as investors moved to price in a lower trajectory for inflation, with the 5yr breakeven down by an even larger -12.3bps. Meanwhile investors also moved to price in a faster pace of hikes over the coming months, with the next 25bps hike fully priced in by the time of the March 2022 meeting, and a +73% chance of one priced in at the next meeting in February. In terms of DB’s own expectations, our UK economist writes in his reaction note (link here) that he now expects the next 25bps hike as soon as February 2022, followed by two further hikes in November 2022 and May 2023. Against this backdrop there was a fairly mixed equity reaction on either side of the Atlantic. The S&P 500 fell -0.88% as mentioned, with the NASDAQ seeing a major -2.47% decline, erasing their post-FOMC gains. In Europe however there was a much stronger performance as they caught up with the US rally following the Fed’s policy decision, and the STOXX 600 advanced +1.23%. Separately, US Treasuries also diverged from their European counterparts, with the 10yr yield down -4.6bps at 1.41%. In terms of the latest on the pandemic, there was a further record number of cases in the UK yesterday, with 88,376 reported, which beats the previous record set only the day before. Against that backdrop, France moved to restrict travel from the UK, with tourist and non-essential business travel prohibited. Separately in South Africa, hospitalisations now stand at 7,614, which is currently up +59% on the previous week. When it comes to the economic impact, yesterday’s release of the December flash PMIs from around the world pointed to weakening growth momentum across the major economies. Indeed, the composite PMI declined on the previous month in the US, Euro Area, Germany, France, UK, Japan and Australia. The headline numbers were the Euro Area composite PMI, which fell to a 9-month low of 53.4 (vs. 54.4 expected), whilst the US composite PMI fell to 56.9. So both still above the 50-mark that separates expansion from contraction, but some way down from their peaks in the middle of the year. Over in the US, it appears the gap between Democratic senators on President Biden’s Build Back Better bill is just too big, as Democratic leaders acknowledged that negotiations and votes could well drag over into next year. In a statement, President Biden said that “It takes time to finalize these agreements, prepare the legislative changes, and finish all the parliamentary and procedural steps needed to enable a Senate vote. We will advance this work together over the days and weeks ahead”. Obviously longer-term outlooks will hinge on whether or not the bill passes, but there’s implications for 2022 growth, too, as the bill was set to extend child tax credits that comprise a not-insubstantial portion of consumer income. Overnight in Asia the main equity indices are trading lower, with the KOSPI (-0.33%), Shanghai Composite (-0.90%), Hang Seng (-1.28%), CSI (-1.31%) and the Nikkei (-1.75%) all declining amidst losses in technology stocks. Some of the main headlines came from the Bank of Japan however, which kept its main policy rates unchanged, announced that it would slowly reduce its corporate debt holdings, but also extended a special covid loans program by six months to end in September 2022, which aims to support small and medium-sized firms. Futures markets in US & Europe are also indicating a slow start, with those on the S&P 500 (-0.14%) and the DAX (-0.67%) both trading in the red. In terms of yesterday’s other data, the weekly initial jobless claims in the US moved up from their half-century low the previous week to 206k (vs. 200k expected). In spite of the uptick however, it was still enough to push the 4-week moving average down to 203.75k. Otherwise, US industrial production grew by +0.5% in November (vs. +0.6% expected), housing starts accelerated to an annualised rate of 1.679m (vs. 1.567m expected), their highest level in 8 months, and building permits rose to an annualised 1.712m (vs. 1.661m expected). To the day ahead now, and data releases include Germany’s Ifo business climate indicator for December, as well as November data on German PPI and UK retail sales. From central banks, we’ll also hear from the Fed’s Waller and the ECB’s Rehn. Tyler Durden Fri, 12/17/2021 - 08:07.....»»

Category: blogSource: zerohedgeDec 17th, 2021

Thor (THO) Secures Elkboard Supply Via the Elkhart Buyout

The acquisition of Elkhart will provide Thor (THO) with an unconstrained supply of Elkboard, which is a sustainable composite material for sidewalls. Thor Industries THO recently announced the acquisition of Elkhart Composites, Inc. by its subsidiary Airxcel, Inc.Indiana-based Elkhart develops and sells proprietary foamed polypropylene-based composite material under the Elkboard brand, which is a sustainable material not vulnerable to decay.  Known for its durability and rigidness, this solution is used in the recreational vehicle (RV) industry for sidewalls, thereby reducing the industry's dependence on the traditional lauan-based sidewalls.Thor is highly optimistic about the takeover. The RV industry has depended on lauan wood sourced from tropical hardwood forests for years. However, amid the recent aggravating supply-chain constraints, the ability to source such materials from the other side of the world has become severely limited and the quality of the available lauan product is also a cause of concern. Hence, this acquisition will provide Thor with an unconstrained supply of Elkboard, which is far more sustainable and fabricated locally. Further, its rigid quality control will provide consistency in the available material.Also, Elkboard is a superior and state-of-the-art product already utilized in many of Thor’s RV offerings. The RV maker anticipates that with the help of an additional R&D investment into the Elkboard product, it can be utilized as a solution in several other RV applications along with sidewalls.Thor also believes that Elkboard has a rampant growth ability. The company has been purchasing all of the Elkboard manufactured only to support a fraction of the RVs it produces. THO and Airxcel have already vowed to make substantial capital investments into Elkboard to boost its current production capacity.The latest acquisition came at a fortunate time, representing the first opportunity for Thor to build upon its recent Kansas-based Airxcel acquisition, which was aimed at diversifying and bolstering the former’s revenues, especially in the aftermarket business.Elkhart is equally ecstatic about the takeover. As demand for the Elkboard product started to surpass the company’s ability to manufacture it, Elkhart was on the lookout for the right partner to team up with for enhancing the production and utilization of Elkboard. Thor was the best choice for teaming up due to its suite of sustainable technologies and products combined with its focus on innovation.Thor currently carries a Zacks Rank #3 (Hold). The Airxcel buyout has fortified Thor’s supply chain business in North America and Europe to meet the growing demand for RVs and provide the firm with attractive long-term growth opportunities. However, tight labor markets and the rising cost of commodities are concerns at the moment. Escalating SG&A costs and stiff competition within the RV industry remain other headwinds. Thus, the stock warrants a cautious stance now.Auto Companies to Focus onA few better-ranked stocks from the auto space include Tesla TSLA, Harley-Davidson HOG and Goodyear Tire GT, all of which sport a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Tesla has an expected earnings growth rate of 166.96% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 6 cents over the last 30 days.Tesla beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. TSLA has a trailing four-quarter earnings surprise of 25.38%, on average. Its shares have rallied 74% over the past year.Harley-Davidson has an expected earnings growth rate of 34.92% for the current quarter. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 2 cents over the last 30 days. Harley-Davidson beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. HOG has a trailing four-quarter negative earnings surprise of 138.45%, on average. Its shares have dropped around 3.6% over the past year.Goodyear has an expected earnings growth rate of 196.86% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 42 cents over the last 30 days. Goodyear beat the Zacks Consensus Estimate for earnings in the last four quarters. GT has a trailing four-quarter earnings surprise of 228.45%, on average. Its shares have rallied 101.8% over the past year. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>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 Thor Industries, Inc. (THO): Free Stock Analysis Report HarleyDavidson, Inc. (HOG): Free Stock Analysis Report The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksDec 8th, 2021

Buy These 2 Stocks Before December Earnings?

Investors likely want to remain on the hunt for strong stocks as we enter the final month of 2021. Here are two modern retail stocks that investors might want to consider buying... Stocks bounced back on Monday following Friday’s big Omicron variant-focused selloff. The quick pullback was driven by real fears and lower holiday volume. Investors began pouring back into the markets to start the week as Wall Street appeared to determine that the new covid strain likely won’t have as significant of an impact as initially feared.Covid and new strains are likely here to stay and investors and consumers have largely proven they are willing to focus on signs of progress in favor of fears. It is also worth constantly remembering that selling is a healthy aspect of all well-functioning markets, especially one that’s soared for over a year and a half.Looking back, investors helped wash away all of the losses from the September and early October downturn in a matter of weeks. And the bulls appear to be in control, at least for now, with the S&P 500 and the Nasdaq both trading well above their 50-day moving averages despite Friday’s big drops.There could certainly be more selling and profit-taking in December. Luckily, the positive backdrop for stocks remains in place even in the face of continued supply chain bottlenecks, rising prices, and difficulty filling millions of open jobs.First off, interest rates will remain historically low for the foreseeable future no matter when the Fed starts to lift its core rate. Secondly, the S&P 500 earnings picture remains strong. And U.S. consumer spending was solid in October, which is a great sign for the entire pivotal holiday shopping period.With this in mind, investors likely want to remain on the hunt for strong stocks as we enter the final month of 2021. Here are two modern retail stocks that investors might want to consider buying…Image Source: Zacks Investment ResearchLululemon LULU– (Q3 Financial Results Due Out Thursday, December 9)Lululemon has transformed from a small high-end yoga clothing maker 20 years ago into a global apparel powerhouse. The company currently sells an array of athletic apparel for women and men, alongside clothing that can be worn to work, dates, the golf course, and beyond. LULU has also rolled out self-care items, more outwear such as coats, and other accessory-style products.The athletic retailer expanded beyond clothing and apparel last year when it bought digital-focused at-home fitness company Mirror. The purchase has already outperformed LULU’s expectations and it’s adding additional live and on-demand digital workout content and putting more Mirror ‘shop-in-shops’ within Lululemon locations—200 excepted by the holiday season.Lululemon closed last quarter with 534 total company-operated stores, up from 506 in the prior-year period. LULU is focused on expanding in Asia and Europe, while continuing to improve its digital offerings. The company topped our Q2 estimates and raised its guidance, with e-commerce accounting for 42% of revenue.Image Source: Zacks Investment ResearchLooking ahead, Zacks estimates call for fiscal 2021 revenue to surge 42% to $6.26 billion, with FY22 projected to come in another 17% higher to hit $7.33 billion. This growth, which is driven in part by Mirror, follows 11% top-line expansion last year and FY19’s 21%. Meanwhile, its adjusted earnings are projected to soar 60% and 21%, respectively during this stretch.Lululemon has beaten our EPS estimates by an average of 25% in the trailing four periods, including a 36% beat last quarter. The company’s consensus earnings estimates have climbed recently and its Most Accurate estimates (or the newest) are higher. This bottom-line positivity helps LULU land a Zacks Rank #2 (Buy) right now. Plus, 15 of the 21 broker recommendations we have for Lululemon are “Strong Buys,” with none below a “Hold.” The athleisure firm also boasts a strong balance sheet and its Textile-Apparel space sits in the top 20% of over 250 Zacks industries.LULU hit records in mid-November, with shares up 45% in the last six months. This run helped end an up-and-down stretch that saw the stock move roughly sideways for nearly a year. Longer-term, Lululemon stock has skyrocketed over 700% in the last five years to crush its industry’s 75% and the S&P 500’s 120%. Despite sitting near its records, LULU trades at a 20% discount against its own year-long highs in terms of forward earnings and sales. And the recent market pullback has it near neutral RSI levels at 56, which could give it room to run if it’s able to impress Wall Street next week.Chewy CHWY – (Q3 Financial Results Due Out Thursday, December 9)Chewy is an e-commerce pet store that went public in 2019. The company has expanded rapidly as consumers gravitate toward convenience in the form of delivery and beyond. CHWY sells pet food, supplies, treats, medications, and more for a variety of animals. Chewy has found success by adding loyal pet owners to its ranks, with roughly 70% of sales coming from its Autoship business that allows people to have food and more delivered at regular intervals.Chewy posted a banner year in 2020 on the back of the pandemic. The firm added 43% more users in 2020 to close the year with 19.2 million. The company, which has been in business for over a decade, has also moved far beyond food and toys. Its offerings include a telehealth service called Connect with a Vet and a beefed-up pet pharmacy platform.Unfortunately for Chewy, the near-perfect backdrop to succeed in business and on Wall Street is over as people return to their normal lives. The firm fell short of revenue estimates last quarter—which it rarely does—and it reported a larger-than-projected quarterly loss. Chewy did close Q2 with 20.1 million customers, up 21% from the year-ago quarter and its revenue climbed 27%. But Wall Street has continued to dump the stock amid rising costs and slowing growth.Image Source: Zacks Investment ResearchZacks estimates call for CHWY’s FY21 revenue to climb 25% to $8.95 billion and then pop 19% higher in 2022. These estimates would follow a 47% climb last year and 37% expansion in FY19. Meanwhile, its adjusted earnings are projected to slip 11% this year to $0.08 a share, with its FY22 figure expected to skyrocket 320% to $0.33 a share.Chewy’s overall consensus earnings estimates have trended lower since its last report to help it grab a Zacks Rank #3 (Hold) at the moment. And it’s part of a group that’s in the bottom 11% of all Zacks industries. That said, nine of the 15 brokerage recommendations Zacks has are “Strong Buys” and it operates a business that isn’t going out of style anytime soon, even though its days of huge 40% growth might be over.CHEWY shares dipped on Monday as the market climbed and it has now fallen over 20% this year, including a 23% drop since its Q2 release. Taking a step back, Chewy is still up 190% in the last two years and its current Zacks consensus price target of $98.33 a share represents 45% upside to Monday’s levels.The pullback has Chewy trading at over a 50% discount to its own year-long highs at 2.8X forward 12-month sales. And the nearby chart shows CHWY attempting to return to its 50-day moving average. That said, some investors might want to wait for more signs of a comeback, especially given that Wall Street is currently betting somewhat heavily against the stock—short interest at roughly 20% of the float. 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 lululemon athletica inc. (LULU): Free Stock Analysis Report Chewy (CHWY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 29th, 2021

QUALCOMM Inc. Climbs to Annual-High Share Price

QUALCOMM Inc. (NASDAQ: QCOM) traded today at a new 12-month high of $188.76. This new high was reached on below-average trading volume as 2.6 million shares traded hands, while the average 30-day volume is approximately 11.7 million shares. Qualcomm develops and licenses wireless technology and designs chips for smartphones. The company’s key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G and 4G networks. The firm is a leader in 5G network technology as well. Qualcomm’s IP is licensed by virtually all wireless device makers. The firm is also the world’s largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors. Qualcomm also sells RF-front end modules into smartphones and chips ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzingaNov 22nd, 2021

4 Stocks to Watch as Videogame Sales Continue to Soar

High demand for videogames since the coronavirus outbreak has been boosting sales of consoles from Microsoft (MSFT), Electronic Arts (EA) and Sony (SONY) and Activision (ATVI). The craze for videogames is far from over and gamers have been aggressively spending on content, hardware and software. Many had predicted that the gaming market would slow down once outdoor entertainment and recreation joints open, but that hasn’t been the case.Spending on videogames has been on the rise, with October turning out to be a great month yet again in terms of sales. This has seen videogame makers like Microsoft Corporation MSFT, Sony Corporation SONY, Nintendo Co. NTDOY, Activision Blizzard, Inc. ATVI and Electronic Arts, Inc. EA benefiting.Videogame Sales SoarConsumer spending on videogames jumped an impressive 16% in October on a year-over-year basis, reaching an October record of $4.4 billion. Spending rose across all sections that include content, hardware and software.The maximum spending was on hardware that primarily drove sales. Hardware sales surged a whopping 82% year over year to hit $472 million. Software sales grew 11% on a year-over-year basis.On a year-to-date basis, spending on hardware, content and accessories hit $46.7 billion, increasing 12% year over year. This once again shows the underlying strength in the industry and how the craze for gaming has continued to grow over the years.The pandemic saw people spending more on videogames as outdoor entertainment wasn’t possible. Analysts had predicted that the gaming market would slow down once the economy reopens as people would have more outdoor entertainment options. However, that hasn’t impacted the videogaming industry.Future Holds PromiseOctober has always been a good month for the videogame industry, as multiple titles are released. This year was no different and gamers continued to spend. Last year saw the release of games like FIFA and Watch Dogs: Legion. This year was even bigger with the release of titles like Far Cry 6, Back 4 Blood, and Nintendo’s Metroid: Dread.The three titles, Far Cry 6, Back 4 Blood, and Metroid: Dread were also the top-selling titles for the month.The gaming industry so far has had a great 2021. The first two quarters saw spending rising, and the third quarter was no different.  According to the Q3 2021 Games Market Dynamics: U.S. report by the NPD Group, consumer spending on video games in the United States hit $13.3 billion in the third quarter, jumping 7% year over year.This also marks the highest third-quarter spend in the history of videogaming. Hardware sales rose 60%, while overall spending on content reached $11.7 billion.Our ChoicesThe videogame industry was already thriving and this year so far has proven to be good. Given this scenario, it would be ideal to invest in these videogame stocks.Electronic Arts, Inc. is a leading developer, marketer, publisher and distributor of interactive games (video game software and content). EA distributes gaming content and services through multiple distribution channels as well as directly to consumers (online and wirelessly) through its online portals.Electronic Arts’expected earnings growth rate for the current year is 21.7%. The Zacks Consensus Estimate for current-year earnings has improved 5.4% over the past 60 days. EA shares gained 3.7% in the past 30 days.Currently, Electronic Arts has a Zacks Rank 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Microsoft Corporation is one of the leading videogame makers and manufacturers of hardware and accessories. MSFT has been expanding its footprint in the industry and recently announced that it will be acquiring videogame maker ZeniMax Media.Microsoft is a pioneer in consoles andon Nov 15, its flagship Xbox turned 20 years. The other MSFT launches include Xbox 360 (2005), Xbox One (2013) and the latest Xbox Series consoles (2020).For the current year, Microsoft’s expected earnings growth rate is 14.9%. The Zacks Consensus Estimate for current-year earnings has improved 6% over the past 60 days. Microsoft shares gained 10.5% in the past 30 days. MSFT has a Zacks Rank #3 (Hold).Sony Corporation designs, manufactures and sells several consumer and industrial electronic equipment. SONY’s product roster comprises audio and video equipment, televisions, displays, semiconductors, electronic components, gaming consoles, computers and computer peripherals, and telecommunication equipment. Sony Corporation’s expected earnings growth rate for next year is 14.1%. The Zacks Consensus Estimate for current-year earnings has improved 2.1% over the past 60 days. SONY shares gained 10.2% in the past 30 days. Sony Corp. currently carries a Zacks Rank #3.Activision Blizzard, Inc. is a leading developer and publisher of console, online and mobile games. ATVI’s Call of Duty is one of the most popular gaming franchises globally. Moreover, Activision Blizzard’sOverwatch League can be considered a pioneer of the e-sports concept.Activision Blizzard reported third-quarter 2021 non-GAAP earnings of 89 cents per share, beating the Zacks Consensus Estimate of 71 cents. ATVI’s expected earnings growth rate for the current year is 11%. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the past 60 days.  Activision Blizzard carries a Zacks Rank #3. Zacks' Top Picks to Cash in on Artificial Intelligence In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>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 Microsoft Corporation (MSFT): Free Stock Analysis Report Activision Blizzard, Inc (ATVI): Free Stock Analysis Report Electronic Arts Inc. (EA): Free Stock Analysis Report Nintendo Co. (NTDOY): Free Stock Analysis Report Sony Corporation (SONY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksNov 16th, 2021

Peloton recovers after sinking on company"s plan to sell $1 billion in stock

The $1.1 billion in capital raising comes after the maker of high-end exercise bikes posted weak quarterly results and lowered forecasts. A Peloton bike.Michael Loccisano/Getty Images Peloton shares on Tuesday recovered ground lost when the company said it would sell $1 billion in common stock.  Peloton followed up with the pricing of 23.9 million shares at $46 apiece, below Monday's closing level.  Peloton stock gained nearly 9% after suffering a premarket fall of 7%.  Peloton stock bounced higher Tuesday, reversing earlier losses that emerged after the high-end exercise equipment maker said it had planned to sell $1 billion in shares. The company followed up with terms about the sale after an early Tuesday statement on the sale of Class A common shares. The underwritten public offering of 23.9 million shares priced at $46 each, rendering the sale set to close on Thursday worth about $1.1 billion. The shares priced below Monday's close at $47.49 but the stock managed to swing higher during Tuesday's session, surging 8.7% to $53.63. Volume was heavy, with more than 26 million shares outstripping average daily volume of 10 million shares. In the premarket session, the shares slumped by as much as 7.1%. That move had set up the shares to extend this year's drop of 69%. Peloton, which sells bikes, treadmills, and interactive classes, granted the stock offering's underwriters a 30-day option to purchase up to an additional 3.26 million Class A shares at the public offering price. Proceeds from the sale will be used for general corporate purposes, which may include building or expanding facilities or investing in technology, it said. Investors in the stock offering included entities affiliated with Durable Capital Partners LP and TCV as well as funds and accounts advised by T. Rowe Price. TCV's co-founder and general partner Jay Hoag sits on Peloton's board of directors.The offering comes less than two weeks after shares suffered their biggest one-day drop ever on weak first-quarter results and lowered forecasts for fiscal 2022 as people emerge from pandemic-induced lockdown mode. News of the stock sale also arrived after the company said during its conference call about first-quarter results that it wasn't aiming to fundraise. "[We] don't see the need for any additional capital raise based on our current outlook," said Jill Woodworth, Peloton's CFO, during the call on November 4. "As we mentioned, we're taking significant steps to adjust our expenses across COGS and opex with this revised revenue guidance, then we have a lot of levers to pull."  COGS refers to costs of goods sold and opex refers to operating expenses. Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 16th, 2021

Peloton falls as the at-home fitness company files to sell $1 billion in common stock

The offering comes less than two weeks after shares suffered their biggest one-day drop ever on weak quarterly results and lowered forecasts. Peloton bike.Michael Loccisano/Getty Images Peloton said Tuesday it has filed to sell $1 billion in common stock.  Entities connected with investment firms Double Capital Partners and TCV were interested in purchasing shares.  Peloton stock fell as much as 7% in premarket trade before trimming the loss.  Peloton stock fell Tuesday after the high-end exercise equipment maker said it plans to sell $1 billion in shares. The company, which sells bikes, treadmills, and interactive classes, has started an unwritten public offering of $1 billion of shares of its Class A common stock, it said in an early Tuesday statement. Peloton stock slumped as much as 7.1% to $44.10 in premarket trade, then pared the loss to 2%. The stock this year has lost about 69%. The company said entities affiliated with Durable Capital Partners LP and TCV as well as funds and accounts advised by T. Rowe Price have expressed an interest in purchasing stock in the offering. Peloton expects to grant the offering's underwriters a 30-day option to purchase up to an additional $150 million worth of shares. The offering comes less than two weeks after shares suffered their biggest one-day drop ever on weak first-quarter results and lowered forecasts for fiscal 2022 as people emerge from pandemic-induced lockdown mode. Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 16th, 2021

Johnson & Johnson Will Split Into Two Companies, Aiming for Faster Growth

Johnson & Johnson is peeling off a consumer health business that helped it become the world’s biggest health care products maker. Johnson & Johnson is peeling off a consumer health business that helped it become the world’s biggest health care products maker. The company said Friday that it will separate its segment that sells Band-Aids, Listerine and over-the-counter medicines like Tylenol from its pharmaceutical and medical device business. Company leaders told analysts that the split into two publicly traded companies will make each business more nimble in adapting to their respective markets. It also allows for a more precise allocation of capital. CEO Alex Gorsky said that while the company’s broad focus has worked in the past, the split addresses segments that “have evolved as fundamentally different businesses.” [time-brightcove not-tgx=”true”] “We’ve seen a significant evolution in these markets, particularly on the consumer side,” Gorsky said, referring in part to a shift toward online shopping that accelerated during the COVID-19 pandemic. The segment selling prescription drugs and medical devices — J&J’s two largest businesses — will keep the Johnson & Johnson name. Its products include the cancer treatment Darzalex, a COVID-19 vaccine and medical devices for orthopedics and surgery. The new consumer health company has yet to be named. It will house brands including Neutrogena, Aveeno, and the iconic Band-Aids, which a company employee created more than 100 years ago. Pharmaceuticals and medical devices pulled in a combined $19.6 billion in revenue in the company’s recently completed third quarter, which turned out better than analysts expected. Consumer health brought in $3.7 billion. The consumer health business has more than 20 brands that each have over $150 million in annual sales, Gorsky noted. He added that the portfolio includes well-known names like Tylenol and children’s Tylenol that have reached all-time highs in market share. An analyst asked company leaders on Friday why they were making the change now, when they have touted J&J’s diversity in the past as a way to help offset or balance a downturn in a particular segment. “I think we have consistently had the belief that our diversified portfolio is rooted in strategy,” Gorsky said. “However, it’s not anchored in strategy.” Johnson & Johnson, which was founded in 1886, said the split will occur in the next two years, if approved by the company’s board of directors. J&J is beginning its split as it also undergoes a leadership transition. The company said in August that Gorsky will step and be replaced in January by longtime company executive Joaquin Duato. The split also comes as J&J deals with criticism from some Democrats in Congress over another corporate move. J&J is facing thousands of lawsuits claiming that its talc-based baby powder, which it has stopped selling in the U.S. and Canada, caused ovarian cancer. U.S. Senators Dick Durbin of Illinois and Elizabeth Warren of Massachusetts, among others, recently sent a letter to the company asking for more information about a newly created subsidiary that filed for Chapter 11 bankruptcy protection. The senators in a Nov. 10 letter called the move a “corporate shell game” that would shield the company from liability in those cases. Company officials said that the split they announced Friday was “separate and distinct” from the baby powder situation. J&J’s announcement comes just days after General Electric said that it plans to split into three separate companies. It also follows similar moves by large pharmaceutical rivals Pfizer Inc., which spun off its consumer health product business in 2019, and Merck & Co. Shares of New Brunswick, New Jersey-based Johnson & Johnson rose less than 2% to $165.28 in late-morning trading while the Dow Jones Industrial Average climbed slightly. J&J shares had already climbed about almost 4% so far this year, while the Dow has jumped about 17%. J&J has been a component of the Dow Jones Industrial Average since 1997......»»

Category: topSource: timeNov 12th, 2021