Passport to Wall Street http://www.pws.io/ pl-PL Copyright 2023, Passport to Wall Street 60 SPY Launched New Era of Investing 30 Years Ago, and Still Remains a Major Player http://www.pws.io/spy-launched-new-era-of-investing-30-years-ago-and-still-remains-a-major-player <p class='black-text'>Thirty years ago, State Street Global Advisors <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/STT"><span style="color:#333">(</span><span style=";">STT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="STT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="STT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="STT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> launched the first ever U.S.-listed exchange-traded fund (ETF), ushering in a new era of low-cost investing. Now, the industry offers a wide array of trading options in nearly every theme or strategy imaginable.</p><p class='black-text'>The <b>SPDR S&P 500 ETF Trust</b> <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SPY"><span style="color:#333">(</span><span style=";">SPY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SPY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SPY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SPY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> gave investors the ability to buy and sell hundreds of stocks on the U.S. market benchmark through a single share. Since its inception, SPY has grown to be the largest ETF with more than $335 billion in assets and average a daily trading volume of $39 billion, according to State Street.</p><p class='black-text'>To further illustrate SPY's success, the 500-stock-benchmark-tracking ETF was trading three times more than Apple <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AAPL"><span style="color:#333">(</span><span style=";">AAPL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AAPL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AAPL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AAPL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>--the largest stock in the world at a nearly $2.3 billion market cap--towards the end of 2022.</p><p class='black-text'>"Born out of the stock market crash of 1987, SPY has demonstrated its resilience throughout major market events from the burst of the dot-com bubble to the global financial crisis of 2008, and more recently, the extreme pandemic-era volatility," said Rory Tobin, head of State Street Global Advisors' Global SPDR ETF Business, in a press statement.</p><p class='black-text'>SPY's success has also birthed an entire industry, with the broader U.S.-listed ETF offerings amassing $6.5 billion since its launch.</p><p class='black-text'>But SPY isn't the only major player in the game, with the industry growing other dominating asset managers like BlackRock <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/BLK"><span style="color:#333">(</span><span style=";">BLK</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="BLK" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="BLK" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="BLK" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Vanguard. BlackRock is the top provider of ETFs with over $10 trillion in assets under management, while Vanguard has continues to expand its business from low-cost mutual funds to low-cost ETFs.</p><p class='black-text'>"In the ETF industry it's BlackRock and Vanguard, and those two are going to rule the land like King Kong and Godzilla unless regulators intervene," said Eric Balchunas, senior ETF analyst at Bloomberg, <a href="https://www.investopedia.com/spy-turns-30-7099489">quoted by </a><i><a href="https://www.investopedia.com/spy-turns-30-7099489">Investopedia</a></i>.</p><p class='black-text'>SPY's success and the overall ETF industry has also made a positive impact on investors, with many traders viewing ETFs as a good investment choice, whether they themselves invest in one or not, according to a State Street ETF Impact Survey.</p><p class='black-text'>More than two-third of global investors surveyed agreed that having ETFs as part of their investment portfolio has improved their overall performance and the majority believe ETFs have made them better investors, according to the survey.</p><p class='black-text'>And the industry still has more room to grow, both globally and in the United States. Just 40% of U.S. investors surveyed say they one an ETF, compared to 83% trading stocks, 67% investing in mutual funds, and 53% holding bonds. Global investors seem more eager to invest in ETFs as well, with 50% of investors globally saying they will invest in ETFs in the next 12 months, When asked if they plan to invest in ETFs in the next 12 months, compared to 37% in the U.S.</p> http://www.pws.io/spy-launched-new-era-of-investing-30-years-ago-and-still-remains-a-major-player Thu, 26 Jan 2023 20:06:57 -0500 Rachel Hemple Meta to Unban Trump on Facebook and Instagram http://www.pws.io/meta-to-unban-trump-on-facebook-and-instagram <p class='black-text'><a href="https://about.fb.com/news/2023/01/trump-facebook-instagram-account-suspension/">Meta <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/META"><span style="color:#333">(</span><span style=";">META</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="META" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="META" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="META" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> says</a> it will be reinstating the banned Facebook and Instagram <a href="https://www.nytimes.com/2023/01/25/technology/trump-facebook-instagram-accounts-meta.html">accounts of former President Donald Trump</a> sometime "in the coming weeks". The company also laid out new steps that it will take to limit the distribution of dangerous posts that don't actually violate terms of service.</p><p class='black-text'>"Democracy is messy and people should be able to make their voices heard," Meta's President of Global Affairs Nick Clegg wrote in a blog on the company's site. "We believe it is both necessary and possible to draw a line between content that is harmful and should be removed, and content that, however distasteful or inaccurate, is part of the rough and tumble of life in a free society."</p><p class='black-text'>Under the "updated protocol", QAnon content, election misinformation, and other potentially risky posts that don't violate Community Guidelines may see limited distribution.</p><p class='black-text'>"The fact is people will always say all kinds of things on the internet. We default to letting people speak, even when what they have to say is distasteful or factually wrong," Clegg wrote.</p><p class='black-text'>Posts covered by the new policy would remain visible on the user's account, but they will not appear in any follower Feeds, and the "reshare" button may also be removed. Risky posts also may not be "recommended or run as ads," and repeatedly posting risky content "may temporarily restrict" a user's access to the company's ad tools.</p><p class='black-text'>The company says it may choose to similarly limit the distribution of dangerous posts from Trump if they determine that "there is a public interest in knowing that Mr. Trump made the statement that outweighs any potential harm", meaning the posts would remain visible on Trump's account but not in users' Feeds.</p><p class='black-text'>"We are taking these steps in light of the Oversight Board's emphasis on high-reach and influential users and its emphasis on Meta's role 'to create necessary and proportionate penalties that respond to severe violations of its content policies,'" wrote Clegg.</p><p class='black-text'>Trump was banned in the aftermath of the January 6 attack on the Capitol. Due to his praise of the insurrectionists, there were concerns that Trump would further incite his followers to violence, leading to his indefinite ban. This decision was later <a href="https://www.oversightboard.com/news/226612455899839-oversight-board-upholds-former-president-trump-s-suspension-finds-facebook-failed-to-impose-proper-penalty/">upheld by Meta's Oversight Board</a>, though the board criticized the undefined length of the ban. In response, Meta set a two-year cap.</p><p class='black-text'>"Now that the time period of the suspension has elapsed," Clegg wrote, "the question is not whether we choose to reinstate Mr. Trump's accounts, but whether there remain such extraordinary circumstances that extending the suspension beyond the original two-year period is justified."</p><p class='black-text'>If Trump violates Meta's terms of service or shares dangerous content, he may be subject to another ban of up to two years "depending on the severity of the violation," according to Clegg.</p><p class='black-text'>Meta acknowledged in its announcement that "reasonable people" are likely to disagree about the correct approach on this issue, noting that users are likely to call on the company to take action against Trump again following his reinstatement. Meta says it knows its decision may be controversial but that "a decision had to be made."</p><p class='black-text'>Meta has struggled to justify and explain the methods it used when it decided to ban Trump two years ago, and the company has been <a href="https://transparency.fb.com/en-gb/enforcement/taking-action/restricting-accounts-by-public-figures/">accused of having double standards</a> when it comes to posts made by controversial public figures.</p> http://www.pws.io/meta-to-unban-trump-on-facebook-and-instagram Thu, 26 Jan 2023 19:13:50 -0500 Autumn McLain Market Update: Nasdaq Climbs 1.7% as Tesla Pops on Strong Earnings http://www.pws.io/market-update-nasdaq-climbs-17-as-tesla-pops-on-strong-earnings <p class='black-text'>Stocks rose on Thursday, with the Nasdaq jumping 1.7% higher, as market participants weighed a busy day of economic reports and the latest batch of corporate earnings reports. The Dow Jones Industrial Average climbed over 200 points, while the S&P 500 added 1.1%.</p><p class='black-text'><b>Here's how the market settled on Thursday: </b></p><p class='black-text'>S&P 500 Index <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SPY"><span style="color:#333">(</span><span style=";">SPY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SPY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SPY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SPY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: +1.10% or +44.21 points to 4,060.43</p><p class='black-text'>Dow Jones Industrial Average <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DIA"><span style="color:#333">(</span><span style=";">DIA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DIA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DIA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DIA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: +0.61% or +205.57 points to 33,949.41</p><p class='black-text'>Nasdaq Composite Index <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/QQQ"><span style="color:#333">(</span><span style=";">QQQ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="QQQ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="QQQ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="QQQ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: +1.76% or +199.06 points to 11,512.41</p><p class='black-text'>In focus on Thursday, the U.S. GDP grew at a 2.9% annual rate in the final quarter of 2022, according to the Commerce Department, topping expectations and demonstrating expansion despite fears of a looming recession. However, it represents a slight cooldown from the government's third-quarter reading.</p><p class='black-text'>Moreover, personal consumption expenditures, which comprise about two-thirds of domestic activity, grew by 2.1%, also a slowdown from the previous quarter's 2.3%.</p><p class='black-text'>Elsewhere in economic news, sales of new homes in the U.S. rose 2.3% in December to a seasonally adjusted annualized rate of 616,000, according to the Census Bureau. Meanwhile, initial unemployment claims fell to 187,000, marking the lowest level since April 2022.</p><p class='black-text'>Also in the spotlight, Tesla <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TLSA"><span style="color:#333">(</span><span style=";">TLSA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TLSA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TLSA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TLSA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> reported strong profits last quarter, earning $3.7 billion in net income on $24.3 billion in revenue. The electric car maker also announce it would deliver about 1.8 million vehicles this year, with would represent a 37% increase in production. Shares rose nearly 11%, helping boost technology names and the tech-heavy Nasdaq.</p><p class='black-text'>IBM <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/IBM"><span style="color:#333">(</span><span style=";">IBM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="IBM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="IBM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="IBM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> reported fourth-quarter earnings that came in slightly above expectations with revenue of $16.69 billion. The company also announced it will cut about 3,900 workers from tis IT Services business, Kyndryl Holdings. IBM said it will spend $300 million in the first quarter to cover employee severance costs.</p><p class='black-text'>American Airlines <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AAL"><span style="color:#333">(</span><span style=";">AAL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AAL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AAL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AAL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares rose over 2% following the carrier's fourth-quarter beat. The company said it expects full-year profit to also top forecasts as the travel industry continues to recovery.</p><p class='black-text'>Southwest <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/LUV"><span style="color:#333">(</span><span style=";">LUV</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="LUV" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="LUV" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="LUV" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares fell 3% after the carrier announced a $22 million loss in the fourth-quarter due to last month's large scale holiday cancellations. The company also cut revenue forecasts for the year to $350 million as it continued to deal with ongoing cancellations and reduced bookings.</p><p class='black-text'>Beyond earnings, Meta Platforms <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/META"><span style="color:#333">(</span><span style=";">META</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="META" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="META" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="META" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> rose over 4% after the tech company announced it will restore former President Donald Trump's Instagram and Facebook accounts after a more than two-year ban.</p><p class='black-text'>Toyota <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TM"><span style="color:#333">(</span><span style=";">TM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> CEO Akio Toyoda announced Thursday he will be stepping down from his role on April 1 to be replaced by current Chief Branding Officer Koji Sato. Toyoda will transition to become Chairman of the Board at Toyota.</p><p class='black-text'>Bed Bath & Beyond <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/BBBY"><span style="color:#333">(</span><span style=";">BBBY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="BBBY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="BBBY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="BBBY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares dropped 22% after the retailer warned it does not have enough cash to pay down its debts on Thursday in a U.S. Securities and Exchange Commission (SEC) filing. The company's market value is currently about $278 million.</p><p class='black-text'>Looking ahead, market participants will start to shift their focus towards the Federal Reserve's next policy meeting next week. The central bank is widely expected to announced a 25 basis point increase as it continues to work to stabilize prices.</p> http://www.pws.io/market-update-nasdaq-climbs-17-as-tesla-pops-on-strong-earnings Thu, 26 Jan 2023 18:20:27 -0500 Rachel Hemple Tesla Shares 5% Higher on Increased Production http://www.pws.io/tesla-shares-5-higher-on-increased-production <p class='black-text'>Tesla <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TSLA"><span style="color:#333">(</span><span style=";">TSLA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TSLA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TSLA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TSLA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were up more than 5% following the company's Q4 earnings report which showed the company exceeding analysts' expectations on the top and bottom lines. Shares got a lift from CEO Elon Musk's comments that the company should be able to produce 2 million cars next year which is a significant increase and an indication that supply chain issues are firmly in the rear view mirror.</p><p class='black-text'>Over the past year, Tesla shares are down by more than 50%, although they are up by 17% this year, along with the broader rally in the stock market as long-term rates have declined. The company has faced a torrent of headwinds, including controversies generated by Musk due to his behavior and acquisition of Twitter. Additionally, competition in the EV market is heating up, while rising short-term rates are a headwind for high-multiple stocks like Tesla.</p><p class='black-text'><i>Inside the Numbers</i></p><p class='black-text'>In Q4, Tesla reported $1.19 in earnings per share which was higher than analysts' estimates of $1.13 per share. Revenue also came in higher than expected at $24.3 billion vs estimates of $24.2 billion. Overall, earnings were up about 37%, while revenue was 33% higher.</p><p class='black-text'>One negative from the report was automotive gross margins compressing to 25.9% which is the lowest figure in 5 years. It's likely an indication that per-unit costs have risen due to inflation and higher salaries, while the company's pricing power is eroding.</p><p class='black-text'>The company acknowledged these challenges and noted that as volumes increase, pricing power would decline. With higher volumes, the company said that it would have to compete on price. In essence, it's becoming like other car companies as it increases volumes. Over the last few months, the company has cut prices, and the value of used Teslas have also materially declined.</p><p class='black-text'>The company didn't issue any guidance for the upcoming quarter or full year. However, Musk said the company should be able to attain production of 2 million new cars unless there is some unpredictable, outside event that prevents it from reaching this goal.</p><p class='black-text'>Musk also pushed back against the notion that his behavior and comments on social media could alienate potential customers. He said, "I've got 127 million followers. And it continues to grow rapidly. That suggests that I'm reasonably popular. I might not be popular with some people. But for the vast majority of people, like the follower count speaks for itself... So Twitter is actually an incredibly powerful tool for driving demand for Tesla."</p> http://www.pws.io/tesla-shares-5-higher-on-increased-production Thu, 26 Jan 2023 15:27:22 -0500 Jaimini Desai Amazon Workers Are At Risk of Serious Injuries, OSHA Report http://www.pws.io/amazon-workers-are-at-risk-of-serious-injuries-osha-report <p class='black-text'>The Occupational Safety and Health Administration (OSHA) announced on Wednesday, January 18, that it <a href="https://www.theverge.com/2023/1/18/23561506/amazon-osha-citations-ergonomics-struck-by-pace">will be fining Amazon</a> <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AMZN"><span style="color:#333">(</span><span style=";">AMZN</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AMZN" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AMZN" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AMZN" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> for failing to protect workers from <a href="https://www.npr.org/2023/01/18/1149787345/amazon-workers-back-injuries-fined-osha">injuries while working in company warehouses</a>.</p><p class='black-text'>OSHA inspectors found that Amazon warehouse employees are put at serious risk of sustaining lower back injuries and musculoskeletal disorders in the course of their work. Employees perform bending, stretching, and twisting motions as often as nine times every minute, constituting an unacceptable hazard according to OSHA.</p><p class='black-text'>"While Amazon has developed impressive systems to make sure its customers' orders are shipped efficiently and quickly, the company has failed to show the same level of commitment to protecting the safety and wellbeing of its workers," said Doug Parker, Assistant Secretary for Occupational Safety and Health.</p><p class='black-text'>At an Amazon warehouse in Illinois, workers need nearly double the number of injury-related transfers and days away from work than other workers in the industry, the OSHA inspectors reported. At two other facilities in New York and Florida, workers needed three times as many injury-related job restrictions as their peers at other companies.</p><p class='black-text'>In addition to hazardous physical activities, inspectors also found that Amazon warehouse employees are in danger of being struck by improperly stored merchandise, merchandise that may fall 30 feet or more before hitting the worker.</p><p class='black-text'>"Each of these inspections found work processes that were designed for speed but not safety," Parker said.</p><p class='black-text'>Amazon is facing a fine of $60,269, the highest amount allowed under the General Duty Clause of the Occupational Safety and Health Act. Repeated and willful violations of workplace safety regulations can result in higher fines.</p><p class='black-text'>The company has 15 days to challenge the citations. If Amazon fails to overturn OSHA's findings, it will also be required to correct any violations. Parker noted that making those corrections could mean a significant investment for the company.</p><p class='black-text'>"We take the safety and health of our employees very seriously, and we strongly disagree with these allegations and intend to appeal," Kelly Nantel, Amazon's spokesperson, said in a statement. "We look forward to sharing more during our appeal about the numerous safety innovations, process improvements, and investments we're making to further reduce injuries."</p><p class='black-text'>"What's more, the vast majority of our employees tell us they feel our workplace is safe," she added.</p><p class='black-text'>According to Nantel, Amazon brought down its workplace injury rates by nearly 15% between 2019 and 2021.</p><p class='black-text'>While Amazon has faced OSHA citations in the past for recordkeeping violations, it hasn't yet been accused of similar safety violations. Parker says that means Amazon isn't part of OSHA's "severe violator program" yet, but it could be in the future.</p> http://www.pws.io/amazon-workers-are-at-risk-of-serious-injuries-osha-report Thu, 26 Jan 2023 15:25:22 -0500 Autumn McLain Big Banks Team Up to Develop Apple Pay Competitor http://www.pws.io/big-banks-team-up-to-develop-apple-pay-competitor <p class='black-text'>Some of the most successful businesses in the financial space were actually developed by banks coming together and creating a solution to their own industry's needs. Another motive for these decisions is that these companies are wary of a competitive threat that could pose a long-term challenge to the underlying business.</p><p class='black-text'>Maybe the best example is Mastercard <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MA"><span style="color:#333">(</span><span style=";">MA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> which a group of banks built to counter the fast rise of other credit card processing companies. Another is MarketAxxess <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MKTX"><span style="color:#333">(</span><span style=";">MKTX</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MKTX" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MKTX" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MKTX" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> which was created by a group of banks to bring bond trading into the digital world and away from the old-school method of brokers calling a bunch of other brokers to figure out prices and spreads.</p><p class='black-text'>Now, history seems to be repeating itself as <i>The Wall Street Journal </i>is reporting that several banks are coming together to work on a digital wallet that will link a users' debit, credit cards, and bank accounts in an effort to compete with financial apps like Apple's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AAPL"><span style="color:#333">(</span><span style=";">AAPL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AAPL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AAPL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AAPL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> Apple Pay, Paypal <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/PYPL"><span style="color:#333">(</span><span style=";">PYPL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="PYPL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="PYPL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="PYPL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, Square <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SQ"><span style="color:#333">(</span><span style=";">SQ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SQ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SQ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SQ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, etc.</p><p class='black-text'>In some ways, this seems to be the next evolution of Zelle which replicated the ease of transferring money in these apps. The same banks that developed Zelle which include Wells Fargo <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/WFC"><span style="color:#333">(</span><span style=";">WFC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="WFC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="WFC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="WFC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, JPMorgan <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/JPM"><span style="color:#333">(</span><span style=";">JPM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="JPM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="JPM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="JPM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, and Bank of America <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/BAC"><span style="color:#333">(</span><span style=";">BAC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="BAC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="BAC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="BAC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> are spearheading the effort. It's expected that these digital wallets will already be integrated with Visa <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/V"><span style="color:#333">(</span><span style=";">V</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="V" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="V" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="V" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Mastercard.</p><p class='black-text'>What's interesting is that initially these financial apps were basically segregated from traditional banks. But, these apps are slowly adding additional features and functionalities and now have many of the same capabilities as a traditional bank account. Some examples include the ability to buy or sell crypto and stocks, transfer money, pay bills, take direct deposits, cash checks, using ATMs, debit cards, take out loans, etc.</p><p class='black-text'>And, many young people and teenagers are managing their entire financial lives through these apps, and they feel no need to be a part of the traditional banking universe. Obviously, if this trend continues, it poses a long-term issue for the traditional banking sector.</p><p class='black-text'>Therefore, this development is not surprising in the least. The only surprise is that these banks seem to be late to the party as these apps have already onboarded millions of users. Additionally, they have the built-in advantage of network effects. Not to mention that Apple Pay is well-integrated into the Apple ecosystem and easy to use for any iPhone user.</p> http://www.pws.io/big-banks-team-up-to-develop-apple-pay-competitor Thu, 26 Jan 2023 15:22:45 -0500 Jaimini Desai Microsoft Shares Lower Following Earnings Miss, Weak Guidance http://www.pws.io/microsoft-shares-lower-following-earnings-miss-weak-guidance <p class='black-text'>Microsoft <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MSFT"><span style="color:#333">(</span><span style=";">MSFT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MSFT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MSFT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MSFT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were down 2% following the company's fiscal second-quarter results which showed a miss on the top line and a slight beat on the bottom line. However, the company's guidance for the upcoming quarter came in below expectations which led to some selling in the after hours session. Azure revenue also fell short of expectations.</p><p class='black-text'>Over the last year, Microsoft shares are down 19% which is more than double the S&P 500's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SPY"><span style="color:#333">(</span><span style=";">SPY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SPY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SPY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SPY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> 9% loss over the past year. Like many of its peers, the company has embarked on a round of cost-cutting by laying off employees, reducing some perks and benefits for employees, streamlining divisions, and winding down some hardware projects. The plunge in its stock price has resulted in valuations becoming much more favorable as it has a forward P/E of 21.7 which is the lowest it's been in nearly a decade.</p><p class='black-text'><i>Inside the Numbers</i></p><p class='black-text'>In its fiscal second quarter, Microsoft reported $2.32 per share in earnings which was slightly above expectations of $2.29 per share in earnings. However, revenue also fell short of expectations at $52.8 billion vs $52.9 billion. The company also took a $1.2 billion charge in its cost-cutting efforts. Overall, earnings were down about 11% compared to last year's fiscal second quarter, while revenue was up 2%.</p><p class='black-text'>In its upcoming quarter, the company is forecasting revenue between $50.5 billion and $51.5 billion which equates to 3% revenue growth. This was below expectations of $52.4 billion. The primary factor in its soft guidance is that it sees continued weakness in PC sales. It also noted a slowdown in Azure revenue in the December quarter in addition to slower growth in Microsoft 365 products.</p><p class='black-text'>Microsoft's Intelligent Cloud revenue came in at $21.51 billion, an 18% increase, which was above expectations of $21.4 billion. Azure revenue was up 31% which was a slowdown from 35% in the last quarter. CEO Microsoft Satya Nadella said that customers are saving money by optimizing workloads.</p><p class='black-text'>For the next quarter, the company is projecting Azure growth to slow further which is a departure from its previous guidance of mid-30% growth. This resulted in declines for other cloud stocks like Amazon <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AMZN"><span style="color:#333">(</span><span style=";">AMZN</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AMZN" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AMZN" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AMZN" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>.</p> http://www.pws.io/microsoft-shares-lower-following-earnings-miss-weak-guidance Wed, 25 Jan 2023 17:43:54 -0500 Jaimini Desai Ticketmaster Faces Congress Over Taylor Swift Concert Crash http://www.pws.io/ticketmaster-faces-congress-over-taylor-swift-concert-crash <p class='black-text'>On Tuesday, executives from Ticketmaster <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/LYV"><span style="color:#333">(</span><span style=";">LYV</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="LYV" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="LYV" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="LYV" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> were <a href="https://apnews.com/article/ticketmaster-entertainment-inc-amy-klobuchar-minnesota-business-fd6bd24fbe88a259aa83496a898a05f9">grilled by Congress</a> over a <a href="https://www.goodmorningamerica.com/culture/story/taylor-swift-ticket-demand-crashes-ticketmaster-website-presale-93346614">site crash the company suffered</a> during the presale for a Taylor Swift concert last November. Members of the Senate Judiciary Committee questioned the Ticketmaster executives regarding whether or not the company's dominance of the market allowed them to provide subpar service.</p><p class='black-text'>Along with vulnerability to bot attacks, the Senators also discussed Ticketmaster's high fees, scalpers, and the company's 2010 merger with concert promotion company Live Nation. Senators on both sides of the aisle discussed potential actions to take to combat the problems, including requiring more transparency on fees, making tickets non-transferable, and breaking up Live Nation and Ticketmaster.</p><p class='black-text'>"The fact of the matter is, Live Nation/Ticketmaster is the 800-pound gorilla here," said Connecticut Democrat Richard Blumenthal. "This whole concert ticket system is a mess, a monopolistic mess."</p><p class='black-text'>Ticketmaster is the largest ticket seller in the world, operating in more than 30 countries and selling 500 million tickets every year.</p><p class='black-text'>During the presale for <a href="https://apnews.com/article/taylor-swift-ticketmaster-concert-tickets-parents-34399cca6403c97f0983a5c69c7edec0">the Taylor Swift concert</a>, Ticketmaster's site was overwhelmed by a combination of fans and bots acting on behalf of scalpers, resulting in thousands of fans losing their tickets after queueing online for hours.</p><p class='black-text'>Live Nation's President and CFO, Joe Berchtold apologized for the incident and pledged that the company would do better, noting that Ticketmaster has spent $1 billion on improved security and stopping bots over the past ten years. Still, the committee members pressed Ticketmaster on how such a large company is vulnerable to bots when other companies regularly deal with them.</p><p class='black-text'>"They have figured it out but you guys haven't? This is unbelievable," Republican Senator for Tennessee, Marsha Blackburn, said. "We've got a lot of people who are very unhappy with the way this has been approached."</p><p class='black-text'>Meanwhile, fans who do manage to get tickets are facing increasingly high fees. According to Democratic Senator Amy Klobuchar from Minnesota, fees on tickets can now reach as high as 75% of the cost of the ticket with the average fee coming in at 27%. Ticketmaster executives argued that ticket sellers don't set fees or ticket rates, venues do, but industry insiders say it's not so simple.</p><p class='black-text'>Part of the reason behind those high fees is reportedly Ticketmaster's partnership with Live Nation: Live Nation only owns 5% of all U.S. concert venues, but it signs multi-year contracts with other venues to provide ticketing services and set up musical acts. Jack Groetzinger, CEO at Ticketmaster's competitor SeatGeek, says that Live Nation can prevent venues from using ticketing services other than Ticketmaster by withholding acts.</p><p class='black-text'>"The only way to restore competition is to break up Ticketmaster and Live Nation," said Groetzinger.</p><p class='black-text'>Berchtold agreed with lawmakers that the company needs to be more transparent about its fees, but he said the industry would prefer action to combat scalping and fraud, including resellers offering tickets that aren't yet for sale from official sources. Ticketmaster does practice reselling, but Berchtold said it would support making tickets non-transferable.</p><p class='black-text'>As a part of the companies' 2010 merger, Live Nation had to agree to wait ten years before it could retaliate against concert venues for using Ticketmaster competitors. During the hearing, Utah Republican Mike Lee questioned whether the deal should have been allowed in the first place.</p><p class='black-text'>"It's very important that we maintain fair, free, open and even fierce competition," said Lee. "It increases quality and it reduces price. We want those things to happen."</p> http://www.pws.io/ticketmaster-faces-congress-over-taylor-swift-concert-crash Wed, 25 Jan 2023 17:38:13 -0500 Autumn McLain Macroeconomic Predictions for 2023 http://www.pws.io/macroeconomic-predictions-for-2023 <p class='black-text'>Many play fortune teller at the start of the year - my making vision boards, setting goals, or voicing their predictions. In particular, many are placing investors and fund managers are placing bets and making predictions on the macroeconomic environment that is to come in 2023 and what we can expect.</p><p class='black-text'>While views and predictions vary, they primarily fall within a few key headline themes: inflation / interest rates, housing market / commercial real estate, tech valuations, artificial intelligence, and Russia's war in Ukraine.</p><p class='black-text'><i>Below is an aggregated consensus shared among investors, entrepreneurs, economists, and politicians on each theme:</i></p><p class='black-text'><b>Inflation & Interest Rates</b></p><p class='black-text'>The Federal Reserve (Fed) took on an aggressive tightening monetary to reign in rampant inflation, which sits at 6.5% as of December 2022 (a far cry from the Fed's long-term inflation rate of 2%. The Fed increased interest rates several times throughout, with the latest raise during its December <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20221214a.htm">FOMC meeting to a target range of 4.25% - 4.5%.</a> December employment and PCE reports showed that the economy was softening which spurred a stock market rally amid optimism that the Fed might be reaching the end of its rate hikes.</p><p class='black-text'>Despite this, the committee issued a statement that it will continue its tightening policy for the foreseeable future: "The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time".</p><p class='black-text'><a href="https://www.bloomberg.com/graphics/2023-investment-outlooks/#xj4y7vzkg">According to Amundi Asset Management, </a>this will create opportunities in certain sectors of the economy, "Given decelerating global growth and a profit recession in the first half of 2023, investors should remain defensive for now with gold and investment-grade credit the favored asset classes. However, they should be ready to adjust through the year to exploit market opportunities that will emerge, as valuations get more attractive. Headwinds should subside in the second half of 2023."</p><p class='black-text'><b>Housing Market & Commercial Real Estate (CRE)</b></p><p class='black-text'>Interest rates have a direct impact on i) stock market performance ii) attractiveness of equity alternatives such as bonds and other fixed income, and iii) home and commercial real estate mortgages and prices.</p><p class='black-text'>Mortgage rates are showing first signs of retreat, sitting at 6.33% as of January 12, 2023, down from 6.97% peak in October 27th, 2022. For comparison, mortgage rates reached 6.78% right before the Great Financial Crisis of 2008.</p><p class='black-text'>Melissa Cohn, vice president for William Raveis, a real estate brokerage firm, noted "I think that we can expect mortgage rates to go down another quarter or even as much as a half a percent over the course of the next month...People can't expect that we're going to go back to a 3%, 30-year fixed rate...If we can get interest rates to go back to where they were pre-COVID, call that anywhere from 3.75% to 4.5%, that would be a home run".</p><p class='black-text'><b>AI & Chat GPT</b></p><p class='black-text'>Chat GPT, the language prediction model chatbot launched in November 2022 by Open AI, has been all the rage. Its use cases range from automating work emails to writing a novel / college essay to developing an app. This doesn't even begin to cover all of its capabilities. It's not magic - its simply the result of vast amounts of data that is used to train the AI to make predictions and provide a result.</p><p class='black-text'>Chat GPT is already being used in professional settings such as healthcare, journalism, and software development. However, the results are still fraught with error and raise potential ethical concerns (specifically within healthcare use cases).</p><p class='black-text'>Oren Etzioni, adviser and board member of the Allen Institute for Artificial Intelligence predicts that " within six months or so, we're going to see a huge step-up in the conversational capabilities of chatbots and voice assistants".</p><p class='black-text'>Microsoft <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MSFT"><span style="color:#333">(</span><span style=";">MSFT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MSFT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MSFT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MSFT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, which has invested $1 billion into OpenAI, with plans to invest up to $10 billion in the coming years, has indicated plans to incorporate Chat GPT into its Bing search engine and Microsoft 365 products (namely Outlook, Word and PowerPoint). However, not all sectors of the economy see the same merits of Chat GPT. Instead, they see risks and erosion of individual thought and development.</p><p class='black-text'>Take education for instance. Many schools and higher education institutions fear that students will no longer write essays or homework assignments on their own. Instead, chat GPT will do all the work. New York Department of Education, for example, has taken steps to block access to ChatGPT on networked school devices.</p><p class='black-text'><b>Tech Valuations & Software Stocks</b></p><p class='black-text'>Company valuations, specifically software businesses, have been on a sharp decline since their COVID peaks. Data from Morgan Stanley <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MS"><span style="color:#333">(</span><span style=";">MS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shows that public software companies are trading at record lows of 5.3x EV / Revenue Multiple, compared to average 7.3x EV / Revenue Multiple for 2014-2022 period. Some investors believe that valuations will rebound as the Fed tapers down on interest rate hikes and the economy cools.</p><p class='black-text'>According to renowned investor Howard Marks, co-founder of Oaktree Capital Management, "...a significant portion of all the money investors made over this period resulted from the tailwind generated by the massive drop in interest rates. I consider it nearly impossible to overstate the influence of declining interest rates over the last four<a href="https://ofdollarsanddata.com/are-declining-interest-rates-responsible-for-stock-growth/"> decades.</a>"</p><p class='black-text'>Gone are the days of cheap money. Tech companies that grew rapidly during COVID and hired excessively to support newfound demand are now implementing rif's and laying off thousands of employees (in some cases). There is a silver lining in this - declining software stocks<a href="https://techcrunch.com/2022/12/12/how-many-tech-companies-can-private-equity-snap-up-while-valuations-are-in-the-gutter/?cx_testId=8&cx_testVariant=cx_1&cx_artPos=0#cxrecs_s"> present a buying opportunity for private equity</a> investors who are sitting on tons of dry capital that is ready to be deployed.</p><p class='black-text'>This reset of software valuations will force many CEO's to rethink their approach to "growth at all cost" mentality. This time period will also instill discipline into venture capital investors who previously chased high growth / high cash burn companies to focus on companies with sound fundamentals and high free cash flow.</p><p class='black-text'><b>Russia's War in Ukraine</b></p><p class='black-text'>Since the start of the war in Ukraine, the country has suffered incredible tragedies' and loss of life. While not comparable, the impact of the war has been felt beyond the borders of Ukraine. European countries have been hit with record high food prices (as supply of grains from Ukraine is virtually non-existent) and gas prices (as Europe looks to move away from dependence on Russian oil and gas). <a href="https://www.statista.com/statistics/1298241/commodity-price-growth-due-to-russia-ukraine-war/#:~:text=Commodity%20price%20increase%20due%20to%20the%20Russia%2DUkraine%20war%202022&text=Global%20wheat%20prices%20increased%20by,among%20the%20leading%20wheat%20exporters.">Global wheat prices alone increased by </a>over 60% from February 2022 to June 2022. As such, <a href="https://www.investingdaily.com/95525/the-ukraine-war-a-wake-up-call-for-the-global-economy/">many are betting on the commodity sector (this includes food and water, gold and silver, as well as rare earth metals).</a></p> http://www.pws.io/macroeconomic-predictions-for-2023 Wed, 25 Jan 2023 17:34:18 -0500 Karina Petrunova Facebook Liability? Twitter Censorship? Supreme Court to Weigh In on Key Online Speech Rules http://www.pws.io/facebook-liability-twitter-censorship-supreme-court-to-weigh-in-on-key-online-speech-rules <p class='black-text'>There are certain established rules when it comes to sites' ability to police their own platforms, but the Supreme Court might just change that. For now, Twitter, Facebook <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/META"><span style="color:#333">(</span><span style=";">META</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="META" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="META" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="META" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, and platforms like them can take down any posts they choose while avoiding liability for harm caused by users' activity, but there are <a href="https://www.nytimes.com/2023/01/19/technology/supreme-court-online-free-speech-social-media.html">two challenges against those rules potentially coming to the Supreme Court</a>.</p><p class='black-text'>"It's a moment when everything might change," said former Google attorney and program director at Stanford University's Cyber Policy Center, Daphne Keller.</p><p class='black-text'>On January 20, the Supreme Court is scheduled to discuss whether or not to hear cases surrounding supposed censorship on social media, and a case is <a href="https://www.nytimes.com/2022/10/03/us/supreme-court-social-media-section-230.html">set to be heard</a> next month regarding platforms' legal responsibility for what users post. Specifically, the case seeks to contest <a href="https://www.nytimes.com/2019/08/06/technology/section-230-hate-speech.html">Section 230</a> of the 1996 Communications Decency Act, which shields platforms from liability for user-generated content.</p><p class='black-text'>To this point, the United States has largely left it up to companies to police speech online, but the Court's decisions in these cases could drastically change that practice. This could significantly impact the business models of virtually every social media company.</p><p class='black-text'>Compared to the U.S., other nations have been more <a href="https://www.nytimes.com/2022/04/22/technology/european-union-social-media-law.html#:~:text=The%20law%2C%20called%20the%20Digital,billions%20of%20dollars%20in%20fines.">hands-on with social media regulation</a>. In the E.U., internet companies are required to have procedures in place to remove illicit content while maintaining transparency about how their content recommendations are generated.</p><p class='black-text'>In U.S. politics, regulation of harmful or illicit content is largely unpopular. Meanwhile, lawmakers have repeatedly pressed tech executives to explain why they remove content from their platforms. Republicans in particular have <a href="https://www.nytimes.com/2020/10/28/technology/senate-tech-hearing-section-230.html">passionately decried the alleged censorship</a> of conservative voices on social media, while Democrats, on the other hand, have called on companies to do more to combat misinformation.</p><p class='black-text'>Section 230 has long stood as a powerful tool for social media companies in the courts. Countless cases against Facebook, Twitter, and Youtube <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/GOOGL"><span style="color:#333">(</span><span style=";">GOOGL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="GOOGL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="GOOGL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="GOOGL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> have been dismissed thanks to this single rule. While supporters of the law say it ensures that sites don't have to take on new legal liability every time a user makes a post, critics say it gives them a free pass for doing harm.</p><p class='black-text'>"If they don't have any liability at the back end for any of the harms that are facilitated, they have basically a mandate to be as reckless as possible," University of Miami law professor Mary Anne Franks told <i>The New York Times</i>.</p><p class='black-text'>In the past, the Supreme Court has declined to hear cases from individuals blaming platforms for the harm done by users' posts, including allegations that Facebook promoted extremist content. Now, however, the Court will hear a case from the family of an American woman killed by extremists with the Islamic State in Paris. The family says Youtube should be held liable for promoting extremist content to its users.</p><p class='black-text'>"Any negative ruling in this case, narrow or otherwise, is going to fundamentally change how the internet works," said Google general counsel Halimah DeLaine Prado.</p><p class='black-text'>On the censorship side of the issue, <a href="https://www.nytimes.com/2022/09/16/business/texas-social-media-political-law.html">Texas</a> and <a href="https://www.nytimes.com/2021/06/30/technology/florida-law-social-media-desantis.html">Florida</a> both recently passed laws restricting platforms' ability to remove content posted by users. The laws let users sue platforms for removing posts due to the "viewpoint" expressed by the content. In Florida, sites could be fine for banning accounts of political candidates.</p><p class='black-text'>The laws are being challenged by industry groups representing the social media companies, but the courts have disagreed over whether to uphold or reject them. The <a href="https://www.washingtonpost.com/technology/2022/05/23/florida-social-media-11th-circuit-decision/">U.S. Court of Appeals for the 11th Circuit</a> upheld most of <a href="https://www.nytimes.com/2023/01/19/technology/supreme-court-online-free-speech-social-media.html">a federal judge's ruling</a> against the states, but the U.S. Court of Appeals for the Fifth Circuit sided against the platforms, opening up the possibility of a Supreme Court hearing.</p><p class='black-text'>"I think we're, right now, in a place where the court is being positioned to make a new judgment on the internet," said an associate professor of cybersecurity law at the U.S. Naval Academy, Jeff Kosseff.</p> http://www.pws.io/facebook-liability-twitter-censorship-supreme-court-to-weigh-in-on-key-online-speech-rules Wed, 25 Jan 2023 17:28:57 -0500 Autumn McLain Market Update: Nasdaq Falls for Second Day on Disappointing Microsoft Guidance http://www.pws.io/market-update-nasdaq-falls-for-second-day-on-disappointing-microsoft-guidance <p class='black-text'>Stocks remained near a flatline into Wednesday's close as investors digested another large batch of corporate earnings reports. The Nasdaq Composite underperformed, falling about 0.2%, while the Dow Jones Industrial Average settled slightly above a flatline and the S&P 500 Index closed slightly below.</p><p class='black-text'><b>Here's how the market settled on Wednesday: </b></p><p class='black-text'>S&P 500 Index <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SPY"><span style="color:#333">(</span><span style=";">SPY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SPY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SPY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SPY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: -0.02% or -0.73 points to 4,016.22</p><p class='black-text'>Dow Jones Industrial Average <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DIA"><span style="color:#333">(</span><span style=";">DIA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DIA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DIA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DIA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: +0.03% or +9.88 points to 33,743.84</p><p class='black-text'>Nasdaq Composite Index <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/QQQ"><span style="color:#333">(</span><span style=";">QQQ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="QQQ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="QQQ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="QQQ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: -0.18% or -20.92 points to 11,313.36</p><p class='black-text'>Technology stocks were in the spotlight on Wednesday after lackluster earnings guidance from Microsoft <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MSFT"><span style="color:#333">(</span><span style=";">MSFT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MSFT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MSFT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MSFT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> further fueled concerns for the health of the sector. CEO Satya Nadella told analysts in a post-earnings conference call that the company saw a decline in business at the end of 2022 in core Windows and Office areas.</p><p class='black-text'>Boeing <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/BA"><span style="color:#333">(</span><span style=";">BA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="BA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="BA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="BA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares settled slightly higher after falling as much as 4% earlier in the session after the aerospace company's fourth-quarter earnings fell short of both top and bottom line estimates due to labor and supply shortages.</p><p class='black-text'>Texas Instruments <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TXN"><span style="color:#333">(</span><span style=";">TXN</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TXN" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TXN" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TXN" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares fell 1% after the chipmaker posted its worst sales decline since 2020, which weighed on the semiconductor sector. The company's revenue fell to $4.17 billion from $4.53 billion in the final quarter of 2023.</p><p class='black-text'>Still, JPMorgan <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/JPM"><span style="color:#333">(</span><span style=";">JPM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="JPM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="JPM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="JPM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> reiterated its Overweight rating on TXN on Wednesday, saying that the company will maintain its standing as a market leader despite current headwinds.</p><p class='black-text'>"Despite a difficult environment this year (slowing demand along with GM cost/depreciation headwinds) for Texas Instruments, the team continues to execute well and maintain strong earnings power even with weaker fundamentals," said JPM Executive Director Harlan Sur, quoted by<i> CNBC</i>.</p><p class='black-text'>Elsewhere, shares of Fox Corp. <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/FOXA"><span style="color:#333">(</span><span style=";">FOXA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="FOXA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="FOXA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="FOXA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and News Corp <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/NWSA"><span style="color:#333">(</span><span style=";">NWSA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="NWSA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="NWSA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="NWSA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> rose on Wednesday after media mogul Rupert Murdoch announced late Tuesday that the media companies have canceled their planned merger.</p><p class='black-text'>Google <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/GOOGL"><span style="color:#333">(</span><span style=";">GOOGL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="GOOGL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="GOOGL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="GOOGL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares fell over 2% on Wednesday after the U.S. Department of Justice filed its second antitrust lawsuit against the search engine giant in just over two years on Tuesday.</p><p class='black-text'>Looking ahead, investors will weigh quarterly earnings from Tesla <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TSLA"><span style="color:#333">(</span><span style=";">TSLA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TSLA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TSLA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TSLA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and IBM <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/IBM"><span style="color:#333">(</span><span style=";">IBM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="IBM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="IBM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="IBM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> after closing bell.</p> http://www.pws.io/market-update-nasdaq-falls-for-second-day-on-disappointing-microsoft-guidance Wed, 25 Jan 2023 17:14:28 -0500 Rachel Hemple FDA Says COVID Vaccines Will Most Likely Need Annual Update http://www.pws.io/fda-says-covid-vaccines-will-most-likely-need-annual-update <p class='black-text'>The Food and Drug Administration (FDA) on Monday published a proposed new COVID vaccine strategy as the coronavirus pandemic continues to evolve beyond the crisis of an emerging virus to a more seasonal wave of manageable infections with the help of effective vaccines.</p><p class='black-text'>In a briefing document published on Monday, the U.S. health regulator said that the COVID vaccine may need to be updated annually to keep up with the evolving virus. Under the proposed strategy, the FDA would choose the dominant COVID strain in the spring to be the target for the updated shot ahead of a later vaccination campaign in the fall.</p><p class='black-text'>This type of vaccine strategy is similar to how the FDA selects the targeting virus for flu shots every year. This plan would allow for the health regulator to update and rollout new COVID vaccines without clinical trials, also similar to how annual flu shots are updated, so that the new vaccine is ready in-time before the colder winter months when respiratory illnesses tend to spike.</p><p class='black-text'>The FDA released the new vaccine strategy ahead of a meeting of the health regulator's independent vaccine advisory panel on Thursday. The expert group is expected to vote on whether to make all COVID vaccines moving forward bivalent shots, or vaccines that protect against both the original SARS-CoV-2 strain that first emerged in late 2019 and the current dominant global strain.</p><p class='black-text'>While there are multiple effective COVID vaccines, only Moderna <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MRNA"><span style="color:#333">(</span><span style=";">MRNA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MRNA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MRNA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MRNA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Pfizer <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/PFE"><span style="color:#333">(</span><span style=";">PFE</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="PFE" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="PFE" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="PFE" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>--BioNTech <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/BNTX"><span style="color:#333">(</span><span style=";">BNTX</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="BNTX" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="BNTX" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="BNTX" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> have developed bivalent vaccines that have received emergency authorization by the FDA. Their vaccines target the current dominant Omicron strain as well as the original COVID strain.</p><p class='black-text'>The FDA noted in the briefing document that most people will need to receive one shot every year to maintain maximum protection against the virus. Individuals that fall into this category are those who have been exposed to COVID's infecting spike protein at least twice--being through infection or vaccination.</p><p class='black-text'>Older adults and those with compromised immune systems may need two doses annually, according to the FDA's outline. The health agency also proposed for young children who have only received one shot to qualify for two doses yearly.</p> http://www.pws.io/fda-says-covid-vaccines-will-most-likely-need-annual-update Tue, 24 Jan 2023 19:12:25 -0500 Rachel Hemple Goldman Sachs Shares Drop Following Q4 Earnings Miss http://www.pws.io/goldman-sachs-shares-drop-following-q4-earnings-miss <p class='black-text'>Goldman Sachs shares declined more than 5% following the company's biggest earnings miss in more than a decade as it missed analysts' expectations on the top and bottom lines. In addition, it set aside larger loan loss provisions than expected as well.</p><p class='black-text'>In some ways, Goldman's weak quarter is payback from the first couple of quarters following the pandemic when Wall Street was on fire, while the Main Street economy languished. This was of course due to the Federal Reserve's ultra-dovish policies with rates at zero and the government pumping trillions of liquidity into financial markets. Now, we have the opposite situation with the Fed determined to reduce economic activity and has been on an aggressive pace of hikes not seen in decades.</p><p class='black-text'><i>Inside the Numbers</i></p><p class='black-text'>In Q4, Goldman Sachs reported $3.32 in earnings per share which exceeded analysts' estimates of $5.48 per share in earnings. The company's revenue also missed expectations at $10.6 billion vs $10.8 billion. The company's earnings came in 66% below last year's earnings figure, while revenue was down 16%.</p><p class='black-text'>The big drop in earnings isn't surprising when considering that operating expenses were up 11% to reach $8.1 billion in an environment where revenue was down. Analysts were expecting $7.3 billion in operating expenses. The bank cited higher compensation costs, employee benefits, and transaction-based fees as factors. The company has already begun layoffs to curb these rising costs, and more are expected to follow.</p><p class='black-text'>Goldman also posted $973 million in credit loss reserves which were sharply higher than last year's Q4 of $344 million and well above analysts' expectations. In the conference call, CFO Denis Coleman said that the bank is noticing some 'early signs of consumer credit deterioration' due to an increase in the number of economic headwinds.</p><p class='black-text'>The bank's crown jewel, its investment bank, saw a 48% decline in revenue to $1.9 billion as issuance for new shares and debt remain depressed due to the Fed's intervention. Its Asset & Wealth Management division also saw a 27% drop in revenue, mostly due to marking down some of its private equity holdings and the value of its debt instruments.</p> http://www.pws.io/goldman-sachs-shares-drop-following-q4-earnings-miss Tue, 24 Jan 2023 17:59:09 -0500 Jaimini Desai Microsoft Extends "Multiyear Multibillion-Dollar" ChatGPT Investment http://www.pws.io/microsoft-extends-multiyear-multibillion-dollar-chatgpt-investment <p class='black-text'>On Monday, Microsoft <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MSFT"><span style="color:#333">(</span><span style=";">MSFT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MSFT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MSFT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MSFT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> announced that it will be <a href="https://blogs.microsoft.com/blog/2023/01/23/microsoftandopenaiextendpartnership/">extending its partnership</a> with tech start-up OpenAI through a "multiyear, multibillion dollar investment" in AI development. The specifics of the investment were not included, but a <i><a href="https://www.nytimes.com/2023/01/23/business/microsoft-chatgpt-artificial-intelligence.html">New York Times</a> </i>source familiar with the deal said Microsoft would be making a $10 billion investment in OpenAI, confirming <a href="https://www.pws.io/openai-unveils-premium-chatbot-chatgpt-professional">prior speculation</a>.</p><p class='black-text'>"We formed our partnership with OpenAI around a shared ambition to responsibly advance cutting-edge AI research and democratize AI as a new technology platform," Microsoft Chairman and CEO, Satya Nadella, is quoted in the company's announcement. "In this next phase of our partnership, developers and organizations across industries will have access to the best AI infrastructure, models, and toolchain with Azure to build and run their applications."</p><p class='black-text'>In 2019 and 2021, Microsoft invested a total of $3 billion in OpenAI, helping to fund the development of the start-up's viral AI-powered tools, Dall-E image generator and the chatbot ChatGPT. Last week, the company announced that it would be introducing a paid version of its chatbot, which was seen as an attempt to get Microsoft to agree to the $10 billion investment.</p><p class='black-text'>Along with its high-dollar investments, Microsoft has also <a href="https://www.pws.io/microsoft-lays-off-10000-employees-amidst-economic-downturn">announced layoffs</a> as a part of its plan to prioritize AI advancement. On January 18, Nadella <a href="https://microsoft.gcs-web.com/node/31251/html">sent an email</a> to employees informing them of plans to cut 10,000 positions at the company in an effort to "align our cost structure with our revenue and where we see customer demand." Nadella said that hiring would continue "in key strategic areas", noting that AI represents "the next major wave of computing".</p><p class='black-text'>Microsoft's focus on AI development is the key to its strategy for staying competitive with other tech giants, like Google <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/GOOGL"><span style="color:#333">(</span><span style=";">GOOGL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="GOOGL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="GOOGL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="GOOGL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, Meta Platforms <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/META"><span style="color:#333">(</span><span style=";">META</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="META" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="META" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="META" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, and Apple <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AAPL"><span style="color:#333">(</span><span style=";">AAPL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AAPL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AAPL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AAPL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>. In December, Google's CEO Sundar Pichai said that <a href="https://www.nytimes.com/2022/12/21/technology/ai-chatgpt-google-search.html">the release of ChatGPT</a> was a "code red" for the company, which immediately pivoted to commit more effort into advancing its own AI technology.</p><p class='black-text'>While tools like those created by OpenAI are unquestionably impressive, they aren't perfect. AI systems build responses based on data sets provided by the developers, and these data sets often reflect biases and toxicity seen across the rest of the internet. As a result, the tools can generate responses that include racial and gender bias, misinformation, hate speech, and other harmful messaging.</p> http://www.pws.io/microsoft-extends-multiyear-multibillion-dollar-chatgpt-investment Tue, 24 Jan 2023 17:47:48 -0500 Autumn McLain JPMorgan Shutters Financial Aid Platform, Cites Fraud http://www.pws.io/jpmorgan-shutters-financial-aid-platform-cites-fraud <p class='black-text'>JPMorgan <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/JPM"><span style="color:#333">(</span><span style=";">JPM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="JPM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="JPM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="JPM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shut down FRANK, a college financial aid platform that the company had bought for $175 million in September 2021. JPMorgan is claiming that the deal was completed on fraudulent grounds as the platform had nearly 4 million fake accounts.</p><p class='black-text'>At the time, FRANK was a highly sought startup led by fintech CEO Charlie Javice. In theory, the acquisition was an opportunity to give the company an opportunity to onboard college students into JPMorgan's financial services ecosystem.</p><p class='black-text'>When FRANK was acquired, it was touted as the 'fastest-growing college financial planning platform' used by more than 5 million students at 6,000 institutions. The company said that it discovered that the vast majority of accounts on the platform were fake after about 70% of emails to users bounced back.</p><p class='black-text'>JPMorgan is now claiming that founder and CEO Javice used the services of a data scientist to create millions of fake accounts during the due diligence process. The bank now says that in reality the startup only had 300,000 accounts rather than 4.3 million students. The bank included emails between Javice and the scientist it employed to create the fake accounts.</p><p class='black-text'>Some of the emails include inquiries from Javice in which she directly asks the professor: "Will the fake emails look real with an eye check or better to use unique ID?" JPMorgan inadvertently was given access to these emails as the Frank tech stack was part of the acquisition.</p><p class='black-text'>Javice's defense is that she was unceremoniously fired from JPMorgan due to 'manufactured' reasons as it sought to avoid paying money owed to her. She is claiming that the bank should pay her legal bills which were incurred during the investigation and that they are backtracking on the deal after violating student privacy deals. Her attorney is trying to frame Javice as a 'whistleblower' rather than someone who committed fraud.</p><p class='black-text'>JPMorgan is vociferously contesting these claims and is seeking to address the issue through legal channels. It's certainly a black mark for CEO Jamie Dimon and JPMorgan, especially as they publicly touted the value of the deal when it was completed. Additionally, many have been critical of JPMorgan's fintech acquisitions over the past couple of years as the value proposition is uncertain and is a departure from its core business.</p> http://www.pws.io/jpmorgan-shutters-financial-aid-platform-cites-fraud Tue, 24 Jan 2023 17:44:48 -0500 Jaimini Desai GM Unveils First Ever "Electrified" Corvette Eray http://www.pws.io/gm-unveils-first-ever-electrified-corvette-eray <p class='black-text'>Last Tuesday, on Corvette's 70th conceptual anniversary, General Motors <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/GM"><span style="color:#333">(</span><span style=";">GM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="GM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="GM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="GM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> announced that its first-ever "electrified" Corvette will be available later this year at a starting price of roughly $104,000, no doubt reflecting the American automaker's efforts to offer electric vehicles exclusively by 2035.</p><p class='black-text'>Confirmed last year, the Eray will be the first hybrid version of what is arguably the quintessential American sports car. It will also be Corvette's quickest production model ever and can supposedly muster near concept car performance levels, achieving speeds of 0-60 in two and a half seconds.</p><p class='black-text'>"It's a testament to innovation that this car has represented throughout its 70-year legacy and certainly represents the future of what this car is capable to deliver going forward," Scott Bell, vice president of Chevrolet, said at the Eray's announcement.</p><p class='black-text'>It is unclear when a fully electrified Corvette will be available, but the 2023 Eray is undoubtedly an appropriate first step in GM's plans to electrify its lineup by mid-2030. Said plans were announced last year, when the automaker also promised to go fully carbon neutral by 2040.</p><p class='black-text'>According to GM, the hybrid Eray was conceived before the company fully crystallized its electrification plans in 2019, back when the automaker announced its eight-generation Corvette.</p><p class='black-text'>Nevertheless, while admittedly not as green, the hybrid system allowed GM's engineers to emphasize the car's performance. The Eray can muster 655 horsepower from its electric and V8 engines. Not only that, but the electric motor in the front allows for faster take-off speeds than those offered by traditional engines. Meanwhile, the car's battery will recharge via braking, coasting, and everyday driving.</p><p class='black-text'>GM President Mark Reuss and other GM officials have said their strategy with Corvette has been to offer both casual cars, like the Eray, and high-performance models, like the z06 Corvette.</p><p class='black-text'>"For the same money you can get all-wheel-drive, and comfort, security, and the livability that comes with a car like this," Tadge Juechter, the Corvette's executive chief engineer, told <i>CBS</i>. "We've really divided the family into pure track and to everyday utility."</p><p class='black-text'>"The mission of this vehicle was performance, performance, performance," Mike Kociba, lead Corvette development engineer said to <i>CNBC</i>. "Every kilogram or pound had to earn its way in from a mass standpoint."</p><p class='black-text'>The Eray will be available in both coupe and convertible models, with the coupe starting at the aforementioned 104k, while the convertible will be available at a 111k price point.</p><p class='black-text'>As far as the rest of GM's 2023-2024 lineup goes, eight other Chevy models have planned redesigns in store, expected are all-electric versions of the Silverado, Colorado, and Trax, as well as the company's Equinox and Blazer crossovers.</p><p class='black-text'>Meanwhile, as far as the timetable of GM's full electrification goes, the automaker said in September that it plans for 40% of its offerings to be fully electric by 2025.</p> http://www.pws.io/gm-unveils-first-ever-electrified-corvette-eray Tue, 24 Jan 2023 17:40:02 -0500 David Fladger Bank of America Shares Slightly Lower Following Q4 Earnings Beat http://www.pws.io/bank-of-america-shares-slightly-lower-following-q4-earnings-beat <p class='black-text'>Bank of America <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/BAC"><span style="color:#333">(</span><span style=";">BAC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="BAC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="BAC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="BAC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were slightly lower following the company exceeding analysts' estimates on the top and bottom lines due to strength in loan demand and net interest income. The bank's results are consistent with performance from other banks which continue to show that the 'Main Street economy' remains resilient, while Wall Street continues to languish under the weight of higher rates.</p><p class='black-text'>Over the past year, Bank of America shares are down 27%. Yet, the company continues to deliver strong results in terms of earnings growth. For next year, analysts are forecasting an 11% increase in earnings per share which would give it a forward P/E of 9.8 which is significantly below the market's forward P/E of 16.6.</p><p class='black-text'>The company also sports a 2.6% dividend yield which should continue to get more enticing especially if long-term yields continue to decline. One material headwind for the company is the inverted yield curve as short-term Treasury yields are close to their highs due to a hawkish Federal Reserve, while longer-term yields have declined due to moderation in inflation and worsening growth expectations.</p><p class='black-text'><i>Inside the Numbers</i></p><p class='black-text'>In Q4, Bank of America reported $0.85 in earnings per share which topped analysts' estimates of $0.77 per share in earnings. Revenue also came in higher than expectations at $24.7 billion vs $24.3 billion. Overall, earnings per share were 3% lower than last year's Q4, while revenue was up 10%.</p><p class='black-text'>The bulk of its outperformance was due to a 29% increase in net interest income which came in at $14.7 billion. This was sufficient to offset the 50% decline in investment banking revenue which was in line with expectations at $1.1 billion. The company does see net interest income slightly lower in its upcoming quarter.</p><p class='black-text'>In a statement accompanying the earnings release, CEO Brian Moynihan said, "The themes in the quarter have been consistent all year as organic growth and rates helped deliver the value of our deposit franchise. That coupled with expense management helped drive operating leverage for the sixth consecutive quarter."</p><p class='black-text'>Like many of its peers, Bank of America continues to prepare for a recession that hasn't arrived yet. It set aside $1.1 billion for credit losses compared to last year when it was able to reduce its reserves by $500 million due to a strong economy. So far, there has been no uptick in write-offs or defaults, both of which remain under pre-pandemic levels despite an assortment of economic challenges.</p> http://www.pws.io/bank-of-america-shares-slightly-lower-following-q4-earnings-beat Tue, 24 Jan 2023 17:34:15 -0500 Jaimini Desai Market Update: Dow Climbs Higher on Busy Day of Earnings http://www.pws.io/market-update-dow-climbs-higher-on-busy-day-of-earnings <p class='black-text'>The Dow Jones Industrial Average closed higher on Tuesday as investors assessed the latest round of quarterly corporate earnings. The Dow rose over 100 points, while the S&P 500 Index and Nasdaq Composite slipped 0.07% and 0.3% lower, respectively.</p><p class='black-text'><b>Here's how the market settled on Tuesday: </b></p><p class='black-text'>S&P 500 Index <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SPY"><span style="color:#333">(</span><span style=";">SPY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SPY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SPY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SPY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: -0.07% or -2.86 points to 4,016.95</p><p class='black-text'>Dow Jones Industrial Average <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DIA"><span style="color:#333">(</span><span style=";">DIA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DIA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DIA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DIA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: +0.31% or +104.40 points to 33,733.96</p><p class='black-text'>Nasdaq Composite Index <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/QQQ"><span style="color:#333">(</span><span style=";">QQQ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="QQQ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="QQQ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="QQQ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: -0.27% or -30.14 points to 11,334.27</p><p class='black-text'>Earnings were in focus on Tuesday. Union Pacific <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/UNP"><span style="color:#333">(</span><span style=";">UNP</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="UNP" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="UNP" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="UNP" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares fell 3% after the railroad company's results fell short of expectations. 3M <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MMM"><span style="color:#333">(</span><span style=";">MMM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MMM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MMM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MMM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares fell over 6% after the company reported an earnings miss and posted disappointing full year guidance. 3M also announced it will cut 2,500 jobs.</p><p class='black-text'>General Electric <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/GE"><span style="color:#333">(</span><span style=";">GE</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="GE" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="GE" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="GE" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares rose 1% after industrial giant posted quarterly results that topped Wall Street expectations. "2022 marked the beginning of a new era for GE," CEO Larry Culp said in a statement. "We successfully launched GE HealthCare, delivered strong financial performance, made significant operational progress, and continue our steadfast commitment to our customers."</p><p class='black-text'>Verizon <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/VZ"><span style="color:#333">(</span><span style=";">VZ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="VZ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="VZ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="VZ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares rose 2% despite the telecom issuing disappointing full year adjusted earnings outlook after the company reported its best subscriber growth in 7 years last quarter. Johnson & Johnson <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/JNJ"><span style="color:#333">(</span><span style=";">JNJ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="JNJ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="JNJ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="JNJ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> reported mixed quarterly results and posted full year outlook for earnings that was slightly higher than analyst estimates.</p><p class='black-text'>Elsewhere for stocks, Amazon <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AMZN"><span style="color:#333">(</span><span style=";">AMZN</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AMZN" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AMZN" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AMZN" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> announced Tuesday a new prescription perk for U.S. Prime members called RxPass. The pharmacy service will allow Prime members to get as many drugs as needed for a list of 50 generic medications. The service costs $5 per month per person and delivery is free.</p><p class='black-text'>Walmart <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/WMT"><span style="color:#333">(</span><span style=";">WMT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="WMT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="WMT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="WMT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> said Tuesday it is raising its minimum range for store employees to $14 per hour, representing a roughly 17% increase. Starting in early March store employees will make between $14 to $19 per hour and the pay increase will impact about 21% of Walmart's 1.6 million employees.</p><p class='black-text'>On Tuesday, trading for more than 200 stocks on the New York Stock Exchange were affected by a technical issue, including Morgan Stanley <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MS"><span style="color:#333">(</span><span style=";">MS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, AT&T <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/T"><span style="color:#333">(</span><span style=";">T</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="T" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="T" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="T" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, Nike <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/NKE"><span style="color:#333">(</span><span style=";">NKE</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="NKE" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="NKE" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="NKE" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and McDonald's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MCD"><span style="color:#333">(</span><span style=";">MCD</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MCD" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MCD" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MCD" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>. The stock exchange announced that it will be canceling some of the early trades from the session.</p><p class='black-text'>Looking ahead, all eyes will be on Microsoft's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MSFT"><span style="color:#333">(</span><span style=";">MSFT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MSFT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MSFT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MSFT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> earnings due out after closing bell.</p> http://www.pws.io/market-update-dow-climbs-higher-on-busy-day-of-earnings Tue, 24 Jan 2023 17:22:15 -0500 Rachel Hemple Tesla Planning to Spend $770 Million On Texas Factory Expansion http://www.pws.io/tesla-planning-to-spend-770-million-on-texas-factory-expansion <p class='black-text'>Tesla <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TSLA"><span style="color:#333">(</span><span style=";">TSLA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TSLA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TSLA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TSLA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> has notified the state of Texas that it plans to invest over $770 million on an Austin-based factory.</p><p class='black-text'>Based on the company's registration documents filed with the Texas Department of Licensing and Regulation, Tesla plans to build additional facilities for a battery cell testing lab, cathode and drive unit manufacturing facilities, and die shop.</p><p class='black-text'>Tesla official opened its initial Austin-based factory in April 2022 along with another vehicle assembly site located near Berlin, Germany. In true Elon Musk style, these milestones were commemorated with a <a href="https://techcrunch.com/2022/04/07/how-to-watch-tesla-cyber-rodeo-at-austins-gigafactory/">"Cyber Rodeo" party with ~15,000 attendees.</a> It is over 10 million square feet and is considered to be the second-largest building in the world, by volume.</p><p class='black-text'>The last year hasn't been without challenges for Tesla and its shareholders. For starters, its stock price plummeted from $310 a year ago to $133 as of January 20, 2023. Falling electric vehicle demand, production backlogs, tumultuous leadership are keeping investors on their toes.</p><p class='black-text'>To add salt to the wound,<a href="https://www.fool.com/investing/2023/01/06/why-tesla-stock-dropped-again/"> Tesla had to slash prices </a>on its Model 3 electric sedan and Model Y electric crossover vehicles by 6% and 13% for Chinese buyers, respectively, citing a decline in deliveries of its EVs in the country (according to reports by the <i>WSJ</i>). The Model 3 now sits at $32,700 per vehicle (30% discount to the price tag for US buyers) while the Model Y sits at $37,000 (37% discount to the U.S. price). This could play out well (i.e. boosting demand) or poorly (i.e. U.S. based buyers hold off in hopes that the price they will have to pay also declines).</p><p class='black-text'>In a back-and-forth on Twitter with Ross Gerber, lawyer and <i>CNN</i> commentator, Elon Musk responded to his tweet that "Tesla stock price now reflects the value of having no CEO. Great job tesla BOD - Time for a shake-up. $TSLA". Musk defended Tesla's stock performance by replying that "As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are not guaranteed, people will increasingly move their money out of stocks into cash, thus causing stocks to drop." Musk has sold over $4 billion in Tesla stock to fund his portion of the Twitter buyout. which definitely hasn't helped the stock's performance.</p><p class='black-text'>Investors are in high anticipation of Tesla's next Investor Day on March 1, 2023 during which they expect to hear updates on the company's performance and plans for the Gigafactory expansion.</p> http://www.pws.io/tesla-planning-to-spend-770-million-on-texas-factory-expansion Mon, 23 Jan 2023 18:03:21 -0500 Karina Petrunova Procter & Gamble Sales Fall for the First Time 5+ Years http://www.pws.io/procter-gamble-sales-fall-for-the-first-time-5-years <p class='black-text'>On Thursday, January 19, the consumer goods giant Procter & Gamble <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/PG"><span style="color:#333">(</span><span style=";">PG</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="PG" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="PG" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="PG" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> <a href="https://www.nytimes.com/2023/01/19/business/procter-gamble-sales-inflation.htmlhttps://www.nytimes.com/2023/01/19/business/procter-gamble-sales-inflation.html">reported a drop in sales</a> for the first time in more than five years. Last quarter P&G's sales fell by 1% compared to the same period last year, the first year-over-year sales decline since 2017.</p><p class='black-text'><a href="https://us.pg.com/brands/">P&G products are ubiquitous</a> on store shelves throughout the U.S., including everything from Tide detergent and Febreze air fresheners to Pampers diapers, Crest toothpaste, and Head & Shoulders hair care. This broad market presence usually makes P&G a safe bet for investors, but inflation has been increasingly difficult for shoppers to manage.</p><p class='black-text'>For a time, consumer <a href="https://www.nytimes.com/2022/10/19/business/consumer-nestle-procter-gamble.html">purchases stayed relatively steady</a> despite the rising prices, but P&G's report highlights the fact that inflation is now affecting even the most essential items, pushing consumers to buy cheaper brands or to simply buy less.</p><p class='black-text'>Last quarter, P&G increased the prices of its many brands by 10%, adding to a 9% increase in the previous quarter. Those higher prices likely contributed to last quarter's 6% drop in the number of products sold, compared to a 3% drop the quarter prior.</p><p class='black-text'>Along with the depressed sales, the company also saw a 7% drop in profits last quarter, making it the second quarter in a row that P&G profits are down. Still, P&G's CEO, Jon Moeller, said on an analyst call that the results are "solid" considering "what continues to be a very difficult cost and operating environment."</p><p class='black-text'>In fact, the company has raised its forecast for sales for the current fiscal year largely thanks to lightening pressure from changes in foreign exchange rates and the high cost of commodities. P&G says it expects it revenue for the year to be flat at best, but Moeller noted that "there is an incredible amount of uncertainty that remains."</p><p class='black-text'>P&G is far from alone in its sales downturn. <a href="https://www.nytimes.com/2023/01/18/business/retail-sales-december-holiday-shopping.html">Retail sales for the U.S.</a> were down 1.1% in December as consumers struggled to cover the increased cost of holiday shopping.</p> http://www.pws.io/procter-gamble-sales-fall-for-the-first-time-5-years Mon, 23 Jan 2023 17:58:08 -0500 Autumn McLain Netflix Shoots 8% Higher on Strong Subscriber Growth http://www.pws.io/netflix-shoots-8-higher-on-strong-subscriber-growth <p class='black-text'>Netflix <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/NFLX"><span style="color:#333">(</span><span style=";">NFLX</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="NFLX" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="NFLX" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="NFLX" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares finished more than 8% higher after the company exceeded Wall Street's estimates for subscriber growth in the fourth quarter despite a big miss on the bottom line. The company also revealed that co-CEO and founder Reed Hastings would be shifting to an executive chairman role and will be replaced by COO Greg Peters as co-CO along with chief content officer Ted Sarandos.</p><p class='black-text'>Overall, Netflix shares are now up more than 100% from its May lows after the stock dropped by more than 50% between April and mid-May. In total, shares dropped by 77% from November 2021 to its May low, before the current rebound. Now, they are a little more than 50% off from it's all-time high.</p><p class='black-text'>Yet, it's fair to say that the company has never been in a better position from an operating and financial perspective. Earnings are projected to increase by 26% next year, while most consumer and tech stocks are forecast to see a material decline. And, the combination of a lower stock price and earnings growth has resulted in an attractive forward P/E of 24. But, the company continues to face a variety of headwinds in the form of competition from other streamers and upwards pressure on the cost of content.</p><p class='black-text'><i>Inside the Numbers</i></p><p class='black-text'>In Q4, Netflix reported $0.12 in earnings per share which fell short of expectations of $0.45 per share in earnings. Revenue was in-line with projections at $7.9 billion vs $7.9 billion. However, the company blew out expectations for global paid net subs at 7.7 million vs 4.6 million.</p><p class='black-text'>The company attributed its earnings miss to the strong dollar and weakness in its European traded debt. Yet, investors chose to overlook this especially as margins came in at 7%, above expectations. Additionally, the company's new ad-supported tier seems to be more popular than expected, although the company didn't reveal exact figures for this cheaper option.</p><p class='black-text'>However, it did say that most of its customers weren't switching plans, indicating that it's an effective lure for new customers. The company also had a series of hits in Q4 which also likely catalyzed subscriber growth. This included the TV show 'Wednesday', the 'Harry and Meghan' documentary, and 'Glass Onion'.</p><p class='black-text'>In terms of a forecast, the streamer sees Q1 revenue growth of 4% which was slightly higher than Wall Street estimates. The company expects that its new paid-sharing program will increase revenue per user as it looks to make money from people who are sharing passwords with people outside their homes.</p> http://www.pws.io/netflix-shoots-8-higher-on-strong-subscriber-growth Mon, 23 Jan 2023 16:26:00 -0500 Jaimini Desai Market Update: Dow Climbs 250 Points as Wall Street Preps for Big Earnings Week http://www.pws.io/market-update-dow-climbs-250-points-as-wall-street-preps-for-big-earnings-week <p class='black-text'>Stocks rose Monday as investors traded ahead of a busy week for corporate earnings and weighed the Federal Reserve's next rate decision later this month. The Dow Jones Industrial Average climbed over 250 points, while the S&P 500 Index and Nasdaq Composite rose 1.2% and 2%, respectively.</p><p class='black-text'><b>Here's how the market settled on Monday: </b></p><p class='black-text'>S&P 500 Index <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SPY"><span style="color:#333">(</span><span style=";">SPY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SPY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SPY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SPY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: +1.19% or +47.20 points to 4,019.81</p><p class='black-text'>Dow Jones Industrial Average <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DIA"><span style="color:#333">(</span><span style=";">DIA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DIA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DIA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DIA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: +0.76% or +254.07 points to 33,629.56</p><p class='black-text'>Nasdaq Composite Index <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/QQQ"><span style="color:#333">(</span><span style=";">QQQ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="QQQ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="QQQ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="QQQ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: +2.01% or +223.98 points to 11,364.41</p><p class='black-text'>In the spotlight on Monday, Salesforce <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/CRM"><span style="color:#333">(</span><span style=";">CRM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="CRM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="CRM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="CRM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares rose 3% on news that hedge fund Elliott Investment Management had taken a multi-billion dollar investment in the software company.</p><p class='black-text'>"Salesforce is one of the preeminent software companies in the world, and having followed the company for nearly two decades, we have developed a deep respect for Marc Benioff and what he has built," Elliott managing partner Jesse Cohn said in a statement. "We look forward to working constructively with Salesforce to realize the value of befitting a company of its stature."</p><p class='black-text'>Spotify Technologies <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SPOT"><span style="color:#333">(</span><span style=";">SPOT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SPOT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SPOT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SPOT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> rose 2% after the music streaming platform confirmed it will cut 6% of its workforce, adding to a growing list of technology companies reducing their workforce as part of cost-cutting measures.</p><p class='black-text'>"Like many other leaders, I hoped to sustain the strong tailwinds from the pandemic and believed that our broad global business and lower risk to the impact of a slowdown in ads would insulate us," said CEO Daniel Ek in a note to employees posted publicly on the company's website.</p><p class='black-text'>Elsewhere, PayPal <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/PYPL"><span style="color:#333">(</span><span style=";">PYPL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="PYPL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="PYPL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="PYPL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were under pressure on Monday after <i>The Wall Street Journal</i><a href="https://www.wsj.com/articles/banks-plan-payment-wallet-to-compete-with-paypal-apple-pay-11674433472?mod=latest_headlines"> reported</a> Bank of America <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/BAC"><span style="color:#333">(</span><span style=";">BAC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="BAC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="BAC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="BAC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, JPMorgan <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/JPM"><span style="color:#333">(</span><span style=";">JPM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="JPM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="JPM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="JPM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, Wells Fargo <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/WFC"><span style="color:#333">(</span><span style=";">WFC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="WFC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="WFC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="WFC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and other major banks plan to launch a digital wallet to compete with PayPal and Apple Pay <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AAPL"><span style="color:#333">(</span><span style=";">AAPL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AAPL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AAPL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AAPL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>. The report stated Visa <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/V"><span style="color:#333">(</span><span style=";">V</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="V" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="V" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="V" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Mastercard <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MA"><span style="color:#333">(</span><span style=";">MA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> are also on board.</p><p class='black-text'>Monday's rally follows a winning week for the S&P 500 and Nasdaq. The Dow is also bouncing off of its losing week, with the major average falling just under 2%.</p><p class='black-text'>Looking ahead, investors are preparing for earnings reports from technology giants like Microsoft <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MSFT"><span style="color:#333">(</span><span style=";">MSFT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MSFT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MSFT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MSFT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Tesla <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TSLA"><span style="color:#333">(</span><span style=";">TSLA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TSLA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TSLA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TSLA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, as well as more economic data, including a reading on fourth-quarter U.S. gross domestic product (GDP) later this week.</p> http://www.pws.io/market-update-dow-climbs-250-points-as-wall-street-preps-for-big-earnings-week Mon, 23 Jan 2023 16:24:36 -0500 Rachel Hemple Johnson & Johnson's Spin-Off Kenvue to IPO in 2023 http://www.pws.io/johnson-johnsons-spin-off-kenvue-to-ipo-in-2023 <p class='black-text'>Johnson & Johnson's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/JNJ"><span style="color:#333">(</span><span style=";">JNJ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="JNJ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="JNJ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="JNJ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> upcoming consumer health segment, Kenvue, is expected to launch in 2023, making it one of the year's highly anticipated upcoming initial public offerings.</p><p class='black-text'>The pharmaceutical and consumer health giant revealed plans to spin-off its consumer health business back in November 2022, with resulting separate company, expected to raise an estimated $5 billion in an IPO of its common stock, according to a recent U.S. Securities and Exchange Commission (SEC) filing.</p><p class='black-text'>"Unveiling the Kenvue brand is a defining moment for our stakeholders and an important part of the planned separation," said Thibaut Mongon, designate chief executive of Kenvue, in a September press release announcing the company's spin-off. "We breathe life into some of the world's most iconic and beloved brands every day, so we harnessed that same expertise, love, and energy into developing our new corporate identity."</p><p class='black-text'>Kenvue's product portfolio includes well known consumer brands such as Aveeno, Tylenol, Neutrogena, Listerine, Motrin, Johnson's, Zyrtec, Lubriderm, Nicorette and Band-Aid.</p><p class='black-text'>The company said its consumer health arm generated revenue of $14.6 billion in 2021, making its the "world's largest pure-play consumer health company by revenue, according to Johnson & Johnson's SEC filing. Kenvue primarily operates in three segments: Self Care, Skin Health and Beauty, and Essential Health, each attributing 38%, 30%, and 32%, respectively, <a href="https://seekingalpha.com/article/4568406-kenvue-begins-ipo-process-seeks-separate-johnson-and-johnson">to net sales in 2021</a>.</p><p class='black-text'>Kenvue is also expected to generate sales in over 100 countries following its planned separation, with sales "driven by world-class innovation capabilities and demonstrated business momentum." Major industry competitors to Kenvue include Procter & Gamble <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/PG"><span style="color:#333">(</span><span style=";">PG</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="PG" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="PG" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="PG" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, Unilever <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/UL"><span style="color:#333">(</span><span style=";">UL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="UL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="UL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="UL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, Colgate-Palmolive <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/CL"><span style="color:#333">(</span><span style=";">CL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="CL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="CL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="CL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Kimberly Calk <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/KMB"><span style="color:#333">(</span><span style=";">KMB</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="KMB" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="KMB" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="KMB" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>.</p><p class='black-text'>The full details of the upcoming IPO, including pricing and timeline, are currently undisclosed. Upon completion, Johnson & Johnson will hold 80.1% of the voting power of common stock shares. All IPO proceeds will go to parent firm Johnson & Johnson.</p> http://www.pws.io/johnson-johnsons-spin-off-kenvue-to-ipo-in-2023 Fri, 20 Jan 2023 18:18:33 -0500 Rachel Hemple Solar Stocks Surge to Start Off 2023 http://www.pws.io/solar-stocks-surge-to-start-off-2023 <p class='black-text'>One of the strongest sectors to start off the new year has been solar stocks as evidenced by the <b>Invesco Solar ETF</b> <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TAN"><span style="color:#333">(</span><span style=";">TAN</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TAN" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TAN" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TAN" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> which is up nearly 12% in just 9 trading days. To compare, the S&P 500 <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SPY"><span style="color:#333">(</span><span style=";">SPY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SPY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SPY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SPY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> is up around 2.5% over the same time period.</p><p class='black-text'>There are a few factors to account for this outperformance which also explain why solar stocks underperformed for most of 2021 and 2022. For one, energy prices have also been modestly rising which is supportive of alternative energy prices. Remember that solar stocks and oil prices peaked simultaneously during the early months of 2021 along with Russia's invasion of Ukraine.</p><p class='black-text'>And, it's fair to expect that this trend should continue given that China seems fully committed to reopening its economy and pivoting away from its zero-COVID policy. Already, real-time economic data of metrics like metro ridership, miles driven, and airline bookings are on the rise and approaching 80% of pre-pandemic levels. It's also fair to expect some sort of pent-up demand effect as we saw in the rest of the world, once these policies were relaxed. It's estimated that this could add about 2 million barrels per day to daily demand.</p><p class='black-text'>Another factor is that many solar stocks are also Chinese stocks which means that rising tensions between the two countries was a major headwind given the possibility of further sanctions and even de-listing. Yet, China has also seemingly taken a more non-confrontational approach and even seems willing to back away from supporting Russia's invasion of Ukraine. This thawing of tensions is another headwind that is now a mild tailwind.</p><p class='black-text'>Finally, another major factor is that longer-term rates have peaked as the 10-year Treasury yields dropping from 4.3% to 3.5% between October and today. Rising longer-term rates are a headwind for solar stocks (and all growth stocks), because it means these companies' future cash flows are less attractive. As these yields decline, it should lead to more inflows for the asset class especially as fundamentals continue improving.</p><p class='black-text'>And while the macro backdrop is certainly improving, it's also worth noting that the top solar companies like First Solar <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/FSLR"><span style="color:#333">(</span><span style=";">FSLR</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="FSLR" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="FSLR" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="FSLR" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Canadian Solar <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/CSIQ"><span style="color:#333">(</span><span style=";">CSIQ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="CSIQ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="CSIQ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="CSIQ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> are trading at very attractive valuations. Typically, growth stocks experience multiple inflation during periods of falling rates which is another tailwind for the sector. Historically, the best opportunities in stocks come when there is the potential for earnings growth and multiple expansion.</p> http://www.pws.io/solar-stocks-surge-to-start-off-2023 Fri, 20 Jan 2023 17:27:28 -0500 Jaimini Desai Are 3D-Printed Houses Coming to a Neighborhood Near You? http://www.pws.io/are-3d-printed-houses-coming-to-a-neighborhood-near-you <p class='black-text'>In Houston, Texas, the design firm Hannah is working to build <a href="https://www.npr.org/2023/01/16/1148943607/3d-printed-homes-level-up-with-a-2-story-house-in-houstonarticle%20one%20for%20this%20week">the first two-story 3D-printed home in the U.S.</a>, one layer of concrete at a time. The home is one of several <a href="https://www.fastcompany.com/90831425/era-of-3d-printed-suburbia">3D printing construction projects completed or currently underway</a> in a handful of states.</p><p class='black-text'>3D printing in construction has existed for more than a decade, and the process is making big strides outside of the U.S. France has plans underway to create five 3D-printed social housing residences, and another project in Gananoque, Ontario, is expected to consist of up to six multi-family homes. Meanwhile, in California, the homes that make "Mighty Quatro" 3D-printed village are actually fabricated in Monterrey, Mexico before being sent to the site for construction.</p><p class='black-text'>According to the co-founder of Hannah, Leslie Lok, the U.S. homebuilding industry has only started to adopt 3D-printing in the last few. For her and many other supporters of 3D printing, the ultimate goal is to find a low-cost way to build durable multi-family homes.</p><p class='black-text'>"This Houston project is a step towards that, being a pretty large single-family house," Lok said.</p><p class='black-text'>The Houston project might be the tallest so far in the country, but it's far from the largest. Iowa City-based <a href="https://www.alquist3d.com/">Alquist 3D is underway</a> on its plans to build 200 3D printed homes around Iowa, with additional plans to build homes in rural areas in Virginia, Florida, Missouri, Kansas, and Texas.</p><p class='black-text'>To construct Hannah's 4,000 square-foot, three-bedroom home, a giant machine has been pouring concrete out of a nozzle virtually non-stop since last July. The home is being built by Hannah in collaboration with another Houston-based company, Cive engineering and construction, and Peri 3D Construction based in Germany.</p><p class='black-text'>The team hopes to use the Houston project to find new ways to streamline the 3D printing construction process. The aim is to develop a method for quickly building well-designed homes.</p><p class='black-text'>"In the future, it has to be fast, simple design in order to compete with other building technologies," Cive's head of structural engineering, Hikmat Zerbe, told <i>NPR</i>.</p><p class='black-text'>For now, speed isn't the goal. Instead, the builders are using the project as one "big laboratory" for 3D printing a home.</p><p class='black-text'>"We are not trying to beat the clock," Zerbe said. "It's a case study. We're learning the capabilities of the machine, learning the reaction of the material under different weather conditions. We're learning how to optimize the speed of printing."</p><p class='black-text'>According to Zerbe, the project in Houston is nearly halfway done. Currently, the preparation and installation costs for 3D printing homes are high, much higher than traditional homes. However, Zerbe says improvements in the process could eventually make 3D printing printing more cost-effective than traditional construction.</p><p class='black-text'>Lok, who was the architectural designer for the Houston project, sees cost-saving opportunities on the design side of things. She says 3D printing could allow builders to offer personalized options for buyers on a large scale while keeping labor costs low.</p><p class='black-text'>"The printer doesn't care if you print the same chair 100 times or you print 100 different chairs," Lok told <i>NPR</i>. "This opens up the possibility of how we can actually offer customized design for the users, whether it's a single-family house or whether it's a multifamily building or apartment."</p> http://www.pws.io/are-3d-printed-houses-coming-to-a-neighborhood-near-you Fri, 20 Jan 2023 17:25:12 -0500 Autumn McLain Delta Shares Unchanged Following Better Than Expected Q4 Earnings http://www.pws.io/delta-shares-unchanged-following-better-than-expected-q4-earnings <p class='black-text'>Delta Airlines <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DAL"><span style="color:#333">(</span><span style=";">DAL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DAL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DAL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DAL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were unchanged despite the company exceeding analysts' estimates on the top and bottom lines. Airline stocks have been rallying hard and are up nearly 40% since October due to positive commentary from management and resilience in travel spending despite an increase in economic headwinds.</p><p class='black-text'>In turn, this led to a higher bar for the company to overcome with its upcoming earnings release especially as the company's Q1 guidance came in slightly below expectations. Another tailwind was the decline in oil prices which are now rebounding along with growth expectations and the Chinese economy moving past its zero-COVID policy. However, shares remain attractive given the company's forward P/E of 5.6, especially for investors with a strong conviction that the economy can evade a recession.</p><p class='black-text'><i>Inside the Numbers</i></p><p class='black-text'>In Q4, Delta Airlines reported earnings per share of $1.48 which exceeded analysts' expectations of $1.33 per share. Revenue also topped expectations at $12.3 billion vs $12.2 billion which excludes refinery revenue. Including this, the company had $13.4 billion in revenue which was 17% higher than its 2019 Q4 revenue.</p><p class='black-text'>However, the company's Q1 guidance came in below expectations as it sees earnings per share between $0.15 and $0.40 per share, while analysts' consensus forecast was significantly higher. It sees capacity increasing to 1% below pre-pandemic levels, while unit costs are expected to increase by 3% to 4% higher than in 2022, largely due to higher labor costs. For the full year, Delta expects earnings per share between $5 and $6 per share.</p><p class='black-text'>Overall in Q4, the company's capacity was 9% lower than pre-pandemic levels. Net income came in at $828 million which was below $1.1 billion in net income in Q4 of 2019. Some key differences in addition to lower capacity, between the two periods, are higher unit costs currently and higher prices which offset some of the lost revenue from fewer flights and higher per-unit costs. Compared to Q4 2019, operating costs were up 19%, while fuel costs were 42% higher.</p><p class='black-text'>The company also noted particular strength in premium offerings. Premium revenue, which includes first-class seats, was up 13%, outpacing the 8% gain from main cabin revenue.</p> http://www.pws.io/delta-shares-unchanged-following-better-than-expected-q4-earnings Fri, 20 Jan 2023 17:19:00 -0500 Jaimini Desai Market Update: Stocks Close Higher, Nasdaq Gains for Third Straight Week http://www.pws.io/market-update-stocks-close-higher-nasdaq-gains-for-third-straight-week <p class='black-text'>Stocks rose on Friday as market participants ended the week on a high note. The Dow Jones Industrial Average jumped 300 points, while the S&P 500 Index and Nasdaq Composite gained 1.9% and 2.7%, respectively.</p><p class='black-text'><b>Here's how the market settled to close out the week: </b></p><p class='black-text'>S&P 500 Index <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SPY"><span style="color:#333">(</span><span style=";">SPY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SPY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SPY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SPY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: +1.89% or +73.76 points to 3,972.61</p><p class='black-text'>Dow Jones Industrial Average <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DIA"><span style="color:#333">(</span><span style=";">DIA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DIA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DIA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DIA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: +1.00% or +330.93 points to 33,375.49</p><p class='black-text'>Nasdaq Composite Index <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/QQQ"><span style="color:#333">(</span><span style=";">QQQ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="QQQ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="QQQ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="QQQ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: +2.66% or +288.17 points to 11,140.43</p><p class='black-text'>Taking center stage, Netflix <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/NFLX"><span style="color:#333">(</span><span style=";">NFLX</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="NFLX" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="NFLX" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="NFLX" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> gained 7% after the streaming giant added more subscribers than expected even though its quarterly earnings missed Wall Street expectations. Netflix also noted that it plans to cut down on password sharing by enforcing rules "more broadly" towards the end of the first quarter of 2023, the company said in its earnings report.</p><p class='black-text'>Separately, CEO Reed Hastings announced he is stepping down, with co-CEO Ted Sarandos and COO Greg Peters set to take over.</p><p class='black-text'>Alphabet <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/GOOGL"><span style="color:#333">(</span><span style=";">GOOGL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="GOOGL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="GOOGL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="GOOGL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> was also in the headlines Friday after Google announced it will lay off 12,000 people across its global workforce. "Over the past two years we've seen periods of dramatic growth. To match and fuel that growth, we hired for a different economic reality than the one we face today," CEO Sundar Pichai wrote in a memo to employees.</p><p class='black-text'>Despite Friday's gains, the Dow and S&P ended the week in negative territory, falling 2.7% and 0.66%, respectively. The Nasdaq, however, outperformed for the week, posting a 0.55% gain and its third positive week in a row.</p><p class='black-text'>In economic news, sales of previously owned homes in the U.S. fell for an 11th consecutive month in December as high mortgage rates and limited inventory continued to weigh on demand. Contract closing declined 1.5% last month from November's reading to an annualized pace of 4.02 million, according to data from the National Association of Realtors (NAR).</p><p class='black-text'>"December was another difficult month for buyers, who continue to face limited inventory and high mortgage rates," said Lawrence Yun, chief economist for NAR, in a statement. "However, expect sales to pick up again soon since mortgage rates have markedly declined after peaking late last year.</p><p class='black-text'>Elsewhere, Genesis Global Capital filed for Chapter 11 bankruptcy protection late Thursday in U.S. Bankruptcy Court for the Southern District of New York. The decision comes after the crypto company cut 30% of its workforce in early January. The company listed 50-99 creditors in its filing, with liabilities ranging from $1.2 billion to $11 billion.</p> http://www.pws.io/market-update-stocks-close-higher-nasdaq-gains-for-third-straight-week Fri, 20 Jan 2023 17:17:00 -0500 Rachel Hemple OpenAI Unveils Premium Chatbot: ChatGPT Professional http://www.pws.io/openai-unveils-premium-chatbot-chatgpt-professional <p class='black-text'>Artificial intelligence company OpenAI says that it will soon be <a href="https://www.cnet.com/tech/services-and-software/chatgpt-is-going-to-be-everywhere-in-2023/">releasing a premium version</a> of its viral AI-powered chatbot, ChatGPT. OpenAI has been spending millions per month to maintain its free chatbot, and the <a href="https://techcrunch.com/2023/01/11/openai-begins-piloting-chatgpt-professional-a-premium-version-of-its-viral-chatbot/">new chatbot program</a>, ChatGPT Professional, is meant to help the company <a href="https://www.theverge.com/2023/1/11/23549821/openai-professional-experimental-paid-version-waitlist-monetization">monetize the software</a> and prove its worth as an investment.</p><p class='black-text'>The premium service was revealed when Open AI posted a <a href="https://docs.google.com/forms/d/e/1FAIpQLScwuQEWBkxsNftEkvUgFx2Ov7pKcrOx8IUlZ241lvet7ziXCQ/viewform">waitlist link</a> in its Discord server asking users for information about how they might use ChatGPT Professional.</p><p class='black-text'>"ChatGPT Professional (experimental) is geared towards professional use," the waitlist form posted by OpenAI reads. "If you are selected, we'll reach out to you to set up a payment process and a pilot."</p><p class='black-text'>Users who complete the form have a chance to be selected to pay for a pilot version of ChatGPT Professional. The form also includes a list of the service's benefits, including at least twice the daily limit on messages, "no blackout windows", and rapid responses from the software.</p><p class='black-text'>"Please keep in mind that this is an early experimental program that is subject to change, and we are not making paid pro access generally available at this time," the company added.</p><p class='black-text'>OpenAI's co-founder and CEO, Sam Altman, has said that ChatGPT's operating costs are "eye-watering", equivalent to a few cents for every chat sent. Largely due to its free access, there were more than a million ChatGPT users as of early December, far surpassing similar tools from other companies.</p><p class='black-text'>ChatGPT is hosted on Microsoft's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MSFT"><span style="color:#333">(</span><span style=";">MSFT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MSFT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MSFT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MSFT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> Azure cloud, and the tech giant is reportedly interested in buying a 49% stake in OpenAI, which it values at $29 billion. There are rumors that the startup is seeking $10 billion in funding from Microsoft, which would add to the nearly $1 billion in investments that the company has received so far.</p><p class='black-text'>The push to monetize ChatGPT is a part of OpenAI's efforts to prove investors' money won't be wasted.</p><p class='black-text'>"We're starting to think about how to monetize ChatGPT (early thinking, nothing official to share yet)," OpenAI <a href="https://discord.com/channels/974519864045756446/977259063052234752/1062169050827984956">wrote on Discord</a> in January, <a href="https://techcrunch.com/2023/01/11/openai-begins-piloting-chatgpt-professional-a-premium-version-of-its-viral-chatbot/">according to <i>TechCrunch</i></a>. "Our goal is to continue improving and maintaining the service, and monetization is one way we're considering to ensure its long-term viability. We're interested in chatting with some folks for ~15 min to get some early feedback."</p> http://www.pws.io/openai-unveils-premium-chatbot-chatgpt-professional Thu, 19 Jan 2023 16:27:21 -0500 Autumn McLain Microsoft Lays Off 10,000 Employees Amidst Economic Downturn http://www.pws.io/microsoft-lays-off-10000-employees-amidst-economic-downturn <p class='black-text'>Microsoft <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MSFT"><span style="color:#333">(</span><span style=";">MSFT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MSFT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MSFT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MSFT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> is the latest <a href="https://www.pws.io/meta-is-the-most-recent-tech-giant-planning-layoffs">tech giant to announce layoffs</a> in preparation for an expected economic downturn in 2023. <a href="https://microsoft.gcs-web.com/node/31251/html">In regulatory filings</a>, the company said that it would be <a href="https://www.npr.org/2023/01/18/1149739148/microsoft-slashes-10-000-jobs-the-latest-in-a-wave-of-layoffs">cutting 10,000 jobs</a> "in response to macroeconomic conditions and changing customer priorities."</p><p class='black-text'>In an email to employees, Microsoft's CEO Satya Nadella wrote that the company is "seeing organizations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one."</p><p class='black-text'>The note from Nadella was also included in Microsoft's filing with the U.S. Securities and Exchange Commission (SEC). In the note, Nadella laid out three priorities for the company.</p><p class='black-text'>"First, we will align our cost structure with our revenue and where we see customer demand," Nadella wrote. "Today, we are making changes that will result in the reduction of our overall workforce by 10,000 jobs through the end of FY23 Q3."</p><p class='black-text'>As Nadella pointed out, these cuts represent less than 5% of the company's 221,000 employees. Neither the note nor the filing laid out which divisions at Microsoft would be facing layoffs.</p><p class='black-text'>Next, Nadella briefly explained Microsoft's investment plans for the coming quarter, saying the company would be making "hard choices" in order to keep up with a changing market "that is unforgiving to anyone who doesn't adapt to platform shifts."</p><p class='black-text'>"We are taking a $1.2B charge in Q2 related to severance costs, changes to our hardware portfolio, and the cost of lease consolidation as we create higher density across our workspaces," Nadella wrote.</p><p class='black-text'>Finally, Nadella acknowledged the company's responsibility to "treat our people with dignity and respect", including by maintaining transparency with its workforce. Laid-off workers in the U.S. who are eligible will receive a range of benefits, including severance pay, six months' healthcare coverage, career transition services, and 60 day's notice before termination.</p><p class='black-text'>"We are committed to ensuring all those whose roles are eliminated have our full support during these transitions," Nadella wrote to employees.</p><p class='black-text'>The company will continue to hire in "strategic areas" as it adapts to focus more on new and growing opportunities, like artificial intelligence and video games.</p><p class='black-text'>Microsoft has partnered with the AI startup OpenAI to provide hosting and support for its viral AI tools, including the chatbot ChatGPT and the Dall-E image generator. There are rumors that the tech giant plans to give OpenAI an additional $10 billion in funding.</p><p class='black-text'>On the video games side, Microsoft recently acquired game developer Activision Blizzard <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/ATVI"><span style="color:#333">(</span><span style=";">ATVI</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="ATVI" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="ATVI" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="ATVI" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> for $69 billion. The deal is currently facing challenges from federal antitrust regulators.</p><p class='black-text'>During the pandemic, Microsoft and many other tech companies started rapidly hiring employees as the industry boomed. Now, those same companies are having "a rip off the Band-aid moment to preserve margins and cut costs," as one Wedbush analyst wrote.</p> http://www.pws.io/microsoft-lays-off-10000-employees-amidst-economic-downturn Thu, 19 Jan 2023 16:23:06 -0500 Autumn McLain Apple Changing Production, Sourcing Strategy http://www.pws.io/apple-changing-production-sourcing-strategy <p class='black-text'>Apple <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AAPL"><span style="color:#333">(</span><span style=";">AAPL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AAPL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AAPL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AAPL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> is the world's largest company with a market cap of over $2 trillion. Even parts of its business or decisions that seem irrelevant to the company's financials or operating performance can have major impacts on other companies or even countries.</p><p class='black-text'>We are seeing this play out at the moment in a variety of ways. Like many other companies, Apple is looking to adjust its supply chains to be more resilient and less dependent on other suppliers. A couple of years ago, it shifted away from using Intel <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/INTC"><span style="color:#333">(</span><span style=";">INTC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="INTC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="INTC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="INTC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> chips for CPUs and towards its own line of M chips which are internally designed and then manufactured by Taiwan Semiconductor Manufacturing <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TSM"><span style="color:#333">(</span><span style=";">TSM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TSM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TSM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TSM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>.</p><p class='black-text'>Now, the company is looking to do the same for chips that are made by Broadcom <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AVGO"><span style="color:#333">(</span><span style=";">AVGO</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AVGO" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AVGO" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AVGO" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Qualcomm <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/QCOM"><span style="color:#333">(</span><span style=";">QCOM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="QCOM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="QCOM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="QCOM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>. Qualcomm's modem chips have been an integral part of the iPhone since the iPhone 4. It's expected that this shift could happen as early as 2025.</p><p class='black-text'>Additionally, the company is looking to replace Broadcom's Bluetooth, radio frequency identification (RFID), wireless charging, and WiFi chips with its own internally designed chips with a target date of 2026. Both moves would have major implications for Qualcomm and Broadcom and make a dent in its financials that wouldn't be easily replaced.</p><p class='black-text'>The genesis of these moves was actually in 2019 when Apple bought Intel's modem division which gave it an influx of engineering talent and patents. The company's longer-term plan is to develop a unified chip that will power all WiFi, cellular connectivity, RFID, and wireless charging.</p><p class='black-text'><b>Production Strategy</b></p><p class='black-text'>Another change in Apple's strategy is to diversify away from China and not become so reliant on that company. Part of this is the rise in tensions between the US and China and the small but increasing probability of a conflict with Taiwan. Another is the country's harsh turn against businesses and its disregard for the economy when it was locking down the country to curb the spread of the coronavirus.</p><p class='black-text'>Given that the iPhone remains the crown jewel of the 'Apple ecosystem' and its primary revenue source, the company has already started production in India. Currently, 5% of iPhones are produced in the country. According to reports, Apple is targeting that 50% of iPhones will be produced in India by 2027. Similarly, Airpod and MacBook production will be moving to Vietnam.</p> http://www.pws.io/apple-changing-production-sourcing-strategy Thu, 19 Jan 2023 16:20:37 -0500 Jaimini Desai Google's New Split-Screen Look for Android Auto is Rolling Out http://www.pws.io/googles-new-split-screen-look-for-android-auto-is-rolling-out <p class='black-text'>Google <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/GOOGL"><span style="color:#333">(</span><span style=";">GOOGL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="GOOGL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="GOOGL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="GOOGL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> recently announced new Android Auto features that will allow for the playing of podcasts and music, in addition to interactive communication. With this updated feature, drivers will be able to have a split-screen layout that shows directions, music, and texts.</p><p class='black-text'>According to Google, the split-screen layout can work in conjunction with all cars. The split-screen User Interface enables people to view multiple parts of the screen at one time. Modeled similarly to Apple's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AAPL"><span style="color:#333">(</span><span style=";">AAPL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AAPL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AAPL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AAPL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> CarPlay, Google has said that it is making a "more personal, easy-to-use experience from behind the wheel."</p><p class='black-text'>Google has said that, in addition to these versatile features, Android Auto will enable WhatsApp <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/META"><span style="color:#333">(</span><span style=";">META</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="META" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="META" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="META" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> calls, smart suggestions, arrival time sharing, music, and podcasts, to name a few. Google has said that the split-screen layout can be redone based on whether the car's screen is portrait, widescreen, or other sizes.</p><p class='black-text'>In addition, Android Auto will be receiving a Google Assistant update, which will include a progress bar for music and podcasts. This progress bar will allow users to "skip" ahead in songs, or to skip advertisements that may be bothersome. On-screen shortcuts will also be displayed on the screen for purposes of responding to contacts or communicating with others.</p><p class='black-text'>At CES 2023, Google offered more information in terms of how the display will show up for those behind the wheel. Google Maps will be placed much nearer to the driver's seat; the "quick launcher" will be available to allow drivers to obtain access to apps.</p><p class='black-text'>Digital car key access will be available starting on Samsung and Xiaomi <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/XIACY"><span style="color:#333">(</span><span style=";">XIACY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="XIACY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="XIACY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="XIACY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> users. At the moment, digital car key access is available for Pixel and iPhones, but these types of features are being offered to Android in the near future. Overall, the new Android Auto features will allow for communication in new ways that are both convenient and personalized.</p> http://www.pws.io/googles-new-split-screen-look-for-android-auto-is-rolling-out Thu, 19 Jan 2023 16:18:45 -0500 Stephanie Williams Market Update: Dow and S&P 500 Post Third Day of Losses http://www.pws.io/market-update-dow-and-sp-500-post-third-day-of-losses <p class='black-text'>Stocks fell Thursday as market sentiment soured as investors grew concerned that the Federal Reserve will continue its aggressive rate hiking campaign despite signs that inflation is cooling. The Dow Jones Industrial Average fell over 250 points, while the S&P 500 Index and Nasdaq Composite slipped about 0.8% and 1%, respectively.</p><p class='black-text'><b>Here's how the market settled on Thursday: </b></p><p class='black-text'>S&P 500 Index <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SPY"><span style="color:#333">(</span><span style=";">SPY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SPY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SPY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SPY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: -0.76% or -30.01 points to 3,898.85</p><p class='black-text'>Dow Jones Industrial Average <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DIA"><span style="color:#333">(</span><span style=";">DIA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DIA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DIA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DIA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: -0.76% or -252.40 points to 33,044.56</p><p class='black-text'>Nasdaq Composite Index <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/QQQ"><span style="color:#333">(</span><span style=";">QQQ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="QQQ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="QQQ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="QQQ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: -0.96% or -104.74 points to 10,852.27</p><p class='black-text'>Wall Street added to losses from Wednesday, with the S&P 500 posting its worst day since mid-December in the previous session as fresh government data showed a slowdown in consumer spending and wholesale price inflation pressures easing.</p><p class='black-text'>On Thursday, Federal Reserve Governor Lael Brainard said in a speech delivered at the Chicago Booth School of Business that she expects interest rates to remain high despite recent signs that inflation is cooling.</p><p class='black-text'>"Even with the recent moderation, inflation remains high, and policy will need to be sufficiently restrictive for some time to make sure inflation returns to 2% on a sustained basis," she said.</p><p class='black-text'>Also in the spotlight, the U.S. reached its debt limit on Thursday, raising concerns about what a potential default could mean for the economy and the U.S. Treasury.</p><p class='black-text'>In a <a href="https://home.treasury.gov/system/files/136/Debt-Limit-Letter-to-Congress-20230119-McCarthy.pdf">letter </a>addressed to House Speaker Kevin McCarthy, Treasury Secretary Janet Yellen said the Treasury will suspend new investments in the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits from Thursday through June 5, 2023 in effort to stave off a default. However, she warned both moves are subject to "considerable uncertainty" if Congress does not pass a bill to increase the debt ceiling.</p><p class='black-text'>On the economic front, new U.S. home construction declined in December, marking the fourth consecutive monthly decline. Residential starts fell 1.4% last month to a 1.382 million annualized rate, according to new government data on Thursday.</p><p class='black-text'>Meanwhile, single-family homebuilding rose to an annualized rate of 909,000 units, applications to build decreased 1.6% to an annualized 1.33 million units, and permits for construction of single-family homes fell 6.5%.</p><p class='black-text'>Separately, new filings for unemployment insurance fell to 190,000 for the week ended January 14, dropping from 205,000 as the labor market remains strong despite persistently high inflation. Economists surveyed by Bloomberg expected claims to increase to 214,000.</p><p class='black-text'>For stocks, Procter & Gamble <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/PG"><span style="color:#333">(</span><span style=";">PG</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="PG" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="PG" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="PG" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> fell over 2% on Thursday after the consumer goods giant posted mixed quarterly results. The company reiterated its full year earnings guidance, but noted that it sees earnings per share forecasted at the low end of their expected range.</p><p class='black-text'>Roblox <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/RBLX"><span style="color:#333">(</span><span style=";">RBLX</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="RBLX" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="RBLX" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="RBLX" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares fell over 6% after Morgan Stanley <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MS"><span style="color:#333">(</span><span style=";">MS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> lowered its rating on the video game company to Underweight from Equal Weight, citing limited upside in the future.</p><p class='black-text'>"Heading into '23, we had maintained a balanced view on RBLX as we believed that strong holiday seasonality and easy comps through mid '23 would lead to a series of monthly metric releases showing accelerating bookings growth," the firm said in a note.</p><p class='black-text'>Looking ahead, Netflix <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/NFLX"><span style="color:#333">(</span><span style=";">NFLX</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="NFLX" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="NFLX" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="NFLX" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> will report earnings on Thursday after market close, kicking off Wall Street's big tech earnings season. The streaming giant is expected to give updates on its subscriber growth for the final period of last year, as well as consumer response to its ad-support subscription tier and its crackdown on password sharing.</p> http://www.pws.io/market-update-dow-and-sp-500-post-third-day-of-losses Thu, 19 Jan 2023 16:09:02 -0500 Rachel Hemple Market Update: Dow Falls 600 Points on Disappointing December Retail Sales http://www.pws.io/market-update-dow-falls-600-points-on-disappointing-december-retail-sales <p class='black-text'>Stocks fell lower on Wednesday as more disappointing economic data and corporate news weighed on market sentiment as investors fear a potential recession. The Dow Jones Industrial Average fell over 600 points, while the S&P 500 Index and Nasdaq Composite lost 1.6% and 1.2%, respectively.</p><p class='black-text'><b>Here's how the market settled on Wednesday: </b></p><p class='black-text'>S&P 500 Index <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SPY"><span style="color:#333">(</span><span style=";">SPY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SPY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SPY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SPY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: -1.56% or -62.11 points to 3,928.86</p><p class='black-text'>Dow Jones Industrial Average <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DIA"><span style="color:#333">(</span><span style=";">DIA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DIA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DIA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DIA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: -1.81% or -613.89 points to 33,296.96</p><p class='black-text'>Nasdaq Composite Index <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/QQQ"><span style="color:#333">(</span><span style=";">QQQ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="QQQ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="QQQ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="QQQ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: -1.24% or -138.10 points to 10,957.01</p><p class='black-text'>In the spotlight on Wednesday, Microsoft <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MSFT"><span style="color:#333">(</span><span style=";">MSFT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MSFT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MSFT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MSFT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> announced plans to lay off about 10,000 employees as the software maker grapples with slowing revenue growth. The job cust are expected to take place through March 31 and the company expects to take a $1.2 billion charge.</p><p class='black-text'>"I'm confident that Microsoft will emerge from this stronger and more competitive," said CEO Satya Nadella in a memo posted on <a href="https://blogs.microsoft.com/blog/2023/01/18/subject-focusing-on-our-short-and-long-term-opportunity/">Microsoft's website</a>.</p><p class='black-text'>On the economic front, the U.S. Commerce Department reported Wednesday that retail sales fell 1.1% in December from November's downwardly revised reading. Economists had expected sales to only decline 0.8% last month.</p><p class='black-text'>Meanwhile, the U.S. Bureau of Labor Statistics reported that the Producer Price Index (PPI) for December fell by a more-than-expected 0.5%, marking the biggest decline for the inflation gauge since the pandemic. Headline PPI rose at an annual 6.2% clip last month, declining year-over-year from November's reading of 7.3%.</p><p class='black-text'>For stocks, United Airlines <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/UAL"><span style="color:#333">(</span><span style=";">UAL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="UAL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="UAL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="UAL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares fell about 5% despite the air carrier's better-than-expected earnings report and its new upbeat outlook announced on Wednesday. In a filing, United said it expects to expand flying by 20% in the first quarter from a year ago.</p><p class='black-text'>Moderna <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MRNA"><span style="color:#333">(</span><span style=";">MRNA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MRNA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MRNA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MRNA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares rose on Wednesday after the biotech company announced results from a late-stage clinical trial for its RSV vaccine was effective at preventing the respiratory disease in older adults. The company expects to file an application for U.S. Food and Drug Administration approval in the first half of this year.</p><p class='black-text'>IBM <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/IBM"><span style="color:#333">(</span><span style=";">IBM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="IBM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="IBM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="IBM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares fell Wednesday after Morgan Stanley <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MS"><span style="color:#333">(</span><span style=";">MS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> analyst Erik Woodring lowered the firm's rating of the tech company to Equal Weight from Overweight.</p><p class='black-text'>"Should our 2023 Industry Outlook prove correct, and early cycle dynamics emerge in mid 2023, we see risk to outperformance given the stock is trading near-record highs and IBM historically underperforms IT Hardware and its peers in an early cycle environment," Woodring wrote in a note.</p><p class='black-text'>Looking ahead, all eyes will be on Netflix's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/NFLX"><span style="color:#333">(</span><span style=";">NFLX</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="NFLX" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="NFLX" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="NFLX" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> earnings report due out Thursday for signs of how the tech sector is responding to persistently high inflation.</p> http://www.pws.io/market-update-dow-falls-600-points-on-disappointing-december-retail-sales Wed, 18 Jan 2023 19:19:48 -0500 Rachel Hemple Short Squeeze Season on Wall Street http://www.pws.io/short-squeeze-season-on-wall-street <p class='black-text'>There is a raging debate on Wall Street whether or not the advance since October is another bear market rally or the beginning of a new bull market. While this is a deep and complicated question that deserves its own investigation, most investors and Wall Street analysts continue to see this as a bear market rally based on surveys, positioning, and fund flows.</p><p class='black-text'>Throughout this bear market which began in earnest in January 2022 (although there were signs of deterioration in many parts of the market since the early months of 2021), we've experienced a variety of bear market rallies that inevitably rolled over.</p><p class='black-text'>In terms of market structure purposes, these brief, interim periods of strength serve to punish greedy short sellers, turn market sentiment from bearish to neutral on a longer-term basis, and bearish to bullish on shorter timeframes. Often, stocks with high levels of short interest will see extraordinary moves higher that don't meaningfully change the trend given their huge losses but are quite impressive on an absolute basis.</p><p class='black-text'>These 'short squeezes' tend to happen when there is a huge wave of liquidity that comes into the markets. In essence, this is money that indiscriminately flows into the market and lifts all boats higher, regardless of fundamentals. Sometimes, the most fundamentally weak stocks will see the biggest advances, simply because they are the most oversold and have the highest levels of short positioning.</p><p class='black-text'>One way to see these 'liquidity-fueled squeezes' is by examining the McClellan Oscillator Index which is an approximation of market liquidity. Currently, the reading is over 80 which has been only reached a handful of times over the past year. All of these instances were accompanied by short squeezes.</p><p class='black-text'>In the current market, we have seen some incredible advances from companies like Bed Bath & Beyond <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/BBBY"><span style="color:#333">(</span><span style=";">BBBY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="BBBY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="BBBY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="BBBY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> which climbed from $1.27 to over $6, despite the company filing for bankruptcy and its credit trading at levels that indicate an extremely high probability that equity holders will be wiped out. Clearly, there is no fundamental justification, and it only makes sense from a liquidity perspective.</p><p class='black-text'>Another example is Carvana <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/CVNA"><span style="color:#333">(</span><span style=";">CVNA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="CVNA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="CVNA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="CVNA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> which climbed from under $3 to over $8. Carvana's outlook is also bleak as the company is cash flow negative and rapidly running out of cash. Additionally, the macro environment is deteriorating for car sales. Some sort of restructuring or share dilution seems likely which is inconsistent with such strength in the stock.</p><p class='black-text'>Carvana and Bed Bath & Beyond's price action is a clear indication of the current market dynamics. If the bear market remains intact, it's a sign that the bear market rally is in its final innings.</p> http://www.pws.io/short-squeeze-season-on-wall-street Wed, 18 Jan 2023 17:58:31 -0500 Jaimini Desai Tesla Cuts Prices in an Effort to Boost Sales http://www.pws.io/tesla-cuts-prices-in-an-effort-to-boost-sales <p class='black-text'>Tesla <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TSLA"><span style="color:#333">(</span><span style=";">TSLA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TSLA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TSLA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TSLA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> is <a href="https://www.npr.org/2023/01/13/1149002185/tesla-prices-model-y-model-3-electric-cars-elon-musk">reducing the price of its most popular models</a> by as much as 20% in an effort to increase sales in the U.S. and Europe. The cuts will make more of Tesla's vehicles eligible for the federal electric vehicle tax credit, including the carmaker's most popular and cheapest long-range EV, the Model Y.</p><p class='black-text'>The news of the price reductions was followed by a drop in Tesla's share price, but the cuts are also expected to help Tesla attract buyers in an increasingly competitive market.</p><p class='black-text'>"This is a clear shot across the bow at European automakers and U.S. stalwarts (GM <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/GM"><span style="color:#333">(</span><span style=";">GM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="GM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="GM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="GM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Ford <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/F"><span style="color:#333">(</span><span style=";">F</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="F" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="F" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="F" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>) that Tesla is not going to play nice in the sandbox with an EV price war now underway," Wedbush analyst Daniel Ives wrote in a note. "Margins will get hit on this, but we like this strategic poker move by Musk and Tesla."</p><p class='black-text'>On an earnings call in the fall of 2022, Tesla CEO Elon Musk first suggested that price cuts might be coming sometime this year, and the company has continued to struggle since then. 2022 was <a href="https://www.pws.io//2022-was-a-bad-year-for-tesla">the worst year Tesla has had</a> so far, with the company suffering a $700 billion loss in market value.</p><p class='black-text'>The Model 3, which already met the EV tax credit's $55,000 price cap, will soon have a base price of $43,990, down $3,000 from its current price.</p><p class='black-text'>On the other hand, currently, only one version of the Tesla Model Y, the 3-row, is lower than the tax credit price cap, and that's only because it qualifies for a higher price cut-off. Following the price reduction, the Model Y will have a base price of $52,990, making it eligible for the $7,500 credit.</p><p class='black-text'>The vehicles might meet the criteria for the tax credit, but some buyers still won't qualify. The federal EV tax credit also has income restrictions for recipients: only individuals making up to $150,000 annually, households making up to $300,000, and heads of households making up to $225,000 are eligible for the credit.</p><p class='black-text'>Tesla has long dominated the market for EVs, but many major automakers have entered the market at a lower price point, <a href="https://www.spglobal.com/mobility/en/research-analysis/new-ev-entries-nibbling-away-at-tesla-ev-share.html">slowly undermining Tesla</a>. Along with that pressure to bring down prices, Tesla is also getting some relief from supply chain issues that had been keeping costs high.</p><p class='black-text'>Affordability is a growing priority for automakers in general as they become more concerned about pricing out potential buyers. Thanks to diminishing supply chain issues, the number of cars available on the market is also increasing, and analysts expect carmakers to start bringing down prices in response.</p><p class='black-text'>Unlike its competitors, Tesla doesn't negotiate with customers on its prices, making it easier for the company to change its prices in comparison. This means Tesla can adjust prices more quickly and easily in reaction to changing market forces.</p> http://www.pws.io/tesla-cuts-prices-in-an-effort-to-boost-sales Wed, 18 Jan 2023 17:56:19 -0500 Autumn McLain Rent the Runway's Fashion Comes to Amazon http://www.pws.io/rent-the-runways-fashion-comes-to-amazon <p class='black-text'>Amazon <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AMZN"><span style="color:#333">(</span><span style=";">AMZN</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AMZN" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AMZN" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AMZN" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> has recently started selling second-hand luxury clothing from retailer Rent the Runway <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/RENT"><span style="color:#333">(</span><span style=";">RENT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="RENT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="RENT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="RENT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> under a new collaboration.</p><p class='black-text'>The storefront allows customers to purchase hundreds of clothing items, whether old or new, found directly on Amazon. Some of the pre-worn items are from companies like Tory Sport, rag & bone, and Tibi, and they will be available at significantly reduced prices.</p><p class='black-text'>One of the main purposes in featuring Rent the Runway clothes on Amazon is to bolster Amazon's business in having more designer fashion. Some of the types of clothes that the Rent the Runway storefront on Amazon will feature are casual, work, seasonal, etc.</p><p class='black-text'>According to Jenn Hyman, Rent the Runway CEO, this move will signify "brand awareness" to the rental fashion company. "There is no site in this country that has higher awareness than Amazon. Rent the Runway is a service that has something for everyone, and we feel that the customer base for us should be broad and diverse."</p><p class='black-text'>Considered a "fashion subscription service," Rent the Runway (during the COVID-19 pandemic especially) collaborated with thredUP and Nordstrom Rack to create a service known as "Revive by Rent the Runway." About a year or so ago, Rent the Runway started working with Saks Off 5th in order to acquire more business.</p><p class='black-text'>The Rent the Runway storefront will be accessible through the Amazon Prime "Try Before You Buy" option. In choosing this option, customers will be able to try on clothes at home and potentially return them if they do not fit.</p><p class='black-text'>"At Amazon Fashion, we continually expand our assortment through strategic relationships with brands to inspire and delight our customers. Rent the Runway's collection continues to grow our offering in pre-loved and designer fashion," Amazon Fashion president Muge Erderik Dogan in a press release.</p><p class='black-text'>Ever since the pandemic, Rent the Runway has suffered much difficulty when it comes to selling their clothing, either for rentals or for permanent ownership. But Hyman has said that the partnership with Amazon could very well be a "key engine" in terms of advancement for the company.</p> http://www.pws.io/rent-the-runways-fashion-comes-to-amazon Wed, 18 Jan 2023 17:53:56 -0500 Stephanie Williams Investors Pull Money Out of Commercial Real Estate on Potential Recession http://www.pws.io/investors-pull-money-out-of-commercial-real-estate-on-potential-recession <p class='black-text'>With inflation on the rise, the Federal Reserve continues its attempt to reel it in by hiking up interest rates. One of the main impacts of that is the subsequent rise of mortgage rates, which have soared above 6.5%. Several financial institutions are tapering down their housing segment and taking on a more conservative approach to home loans.</p><p class='black-text'>Commercial real estate (CRE) investors are also getting nervous. Investment firms, endowments, and pension funds are pulling money out of real estate fund and exploring safer alternatives such as bonds (fixed income) which are now also more competitive given the Fed's interest rate increase.</p><p class='black-text'><a href="https://finance.yahoo.com/news/not-yet-run-nervous-investors-152448819.html">Wells Fargo <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/WFC"><span style="color:#333">(</span><span style=";">WFC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="WFC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="WFC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="WFC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, for instance, is tapering down its mortgage lending business</a> - the bank will now only offer home loans to existing customers and families from underrepresented communities. Real estate investment managers, Blackstone <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/BX"><span style="color:#333">(</span><span style=";">BX</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="BX" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="BX" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="BX" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Starwood <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/STWD"><span style="color:#333">(</span><span style=";">STWD</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="STWD" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="STWD" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="STWD" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, are protecting themselves by placing redemption restrictions on their non-traded REITs (real estate investment trusts) as investors increasingly seek to pull their money out. For November alone, Blackstone received $3 billion of redemption requests (equal to 2% of the REITs net asset value). Nontraded REITs typically limit withdrawals to a monthly or quarterly basis, however; if numerous investors request to redeem their funds, the firm could potentially be put in a position where it will have to sell other assets to cover the <a href="https://www.barrons.com/articles/blackstone-real-estate-fund-breit-reit-redemptions-analyst-51670426374">requests</a>.</p><p class='black-text'><a href="https://www.schwab.com/learn/story/which-sectors-might-benefit-from-rising-rates">REITs have historically underperformed </a>at times of rising interest rates as they typically fare better during strong economic conditions when they are able to collect rent and witness property price increase. REITs are also heavily levered which means that rising interest rates increase the cost of loans.</p><p class='black-text'>Heavy investor withdrawals indicate sentiment on housing and commercial real estate is still very bleak amid fears of a recession. An increasing number of office and retail spaces continue to remain empty as retailers end expensive leases, tech layoffs continue, and pandemic-induced work-from-home continues. Many landlords across top cities such as New York and San Francisco, where many tech companies are headquartered, are having<a href="https://www.bloomberg.com/news/articles/2023-01-10/tech-layoffs-remote-work-mean-more-pain-for-empty-office-buildings?leadSource=uverify%20wall"> trouble finding tenants</a> for their empty buildings. As demand for commercial real estate declines, prices soften compared to the beginning of 2022.</p><p class='black-text'>Economists predict a 70% chance that the economy will fall into a recession in <a href="https://www.bloomberg.com/news/articles/2022-12-20/economists-place-70-chance-for-us-recession-in-2023?srnd=premium&leadSource=uverify%20wall">2023</a>. The recession is partly intentional - a response to rising interest rates which the Federal Reserve is attempting to reel back down to 2% (level deemed consistent with achieving stable prices and maximum employment) by hiking up interest rates. Moody's Analytics chief economist Mark Zandi pointed out, "We've seen this story before. When inflation picks up and the Fed responds by pushing up interest rates, the economy ultimately caves under the weight." Fed Chair Jerome Powell acknowledged that there is potential for a <a href="https://www.pbs.org/newshour/economy/federal-reserve-chair-jerome-powell-says-inflation-fight-may-cause-a-recession">"soft landing", however, a recession would be unavoidable.</a></p><p class='black-text'>Transaction volumes for homes and commercial real estate have fallen to below January 2019 levels. A Deutsche research team noted that "Real estate is one of the key levers the Fed can use to slow the economy; higher rates are dramatically reducing U.S. real estate activity". The <a href="https://www.federalreserve.gov/faqs/economy_14419.htm">Federal Reserve monitors several price indexes</a> to gauge changes in inflation. The Fed primarily relies on the Personal Consumption Expenditures (PCE) index as it includes a broad range of spending categories. Few sectors of the economy are immune to increasing interest rates however some fare better than others, and we are witness an exodus out of real estate and into safer asset classes.</p> http://www.pws.io/investors-pull-money-out-of-commercial-real-estate-on-potential-recession Wed, 18 Jan 2023 17:39:02 -0500 Karina Petrunova KB Homes Unchanged Despite Earnings Miss, Underwhelming Outlook http://www.pws.io/kb-homes-unchanged-despite-earnings-miss-underwhelming-outlook <p class='black-text'>KB Homes <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/KBH"><span style="color:#333">(</span><span style=";">KBH</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="KBH" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="KBH" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="KBH" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were initially lower following the homebuilder's fourth-quarter earnings report which showed a miss on the bottom line as homebuyer demand cooled further than expected. Adding to the selling pressure was a weaker-than-expected forecast for the upcoming quarter including possible price cuts to offload inventory.</p><p class='black-text'>However, shares recovered these initial losses due to broad market strength and the increasing likelihood that inflation numbers have peaked and longer-term rates will move lower. Lower longer-term rates will translate into lower mortgage rates which could lead to a surge in demand. Thus, investors seem willing to overlook KB Homes' near-term weakness as long as macro conditions are improving.</p><p class='black-text'><i>Inside the Numbers</i></p><p class='black-text'>In Q4, KB Homes reported $2.47 in earnings per share which fell short of expectations of $2.86 in earnings per share. Revenue also fell short of expectations at $1.94 billion vs expectations of $1.99 billion. Overall, earnings were 29% higher, while revenue was up 16% compared to 2021's Q4.</p><p class='black-text'>For the next quarter, the company sees revenue between $1.25 billion and $1.4 billion which was under analysts' consensus forecast of $1.38 billion. For the full year, analysts see a 15% decline in revenue and a 33% drop in earnings per share.</p><p class='black-text'>The company acknowledged that the current economy is especially challenging for homebuilders due to the combination of a slowing economy, high inflation, and higher rates impacting demand. On the conference call, CEO Jeffrey Metzger remarked that "High mortgage rates and persistent inflation, together with an uncertain economy, have made homebuyers more cautious since the middle of last year." He also added that the company's focus is on making deliveries rather than sales given seasonality and the macro backdrop.</p><p class='black-text'>However, as the spring nears when home-buying activity naturally picks up, the company is looking to get 'more aggressive with our pricing ahead of the spring selling season, in order to generate new orders.'</p><p class='black-text'>It's interesting that KB Homes' financial performance wasn't really affected by the myriad of economic challenges until the latter half of this year. Yet, shares have underperformed for much of the last 18 months due to the deteriorating macro environment. Now, we may possibly be experiencing an inverse situation in which KB Homes posts middling performance but shares are rising due to lower longer-term rates and falling inflation.</p> http://www.pws.io/kb-homes-unchanged-despite-earnings-miss-underwhelming-outlook Tue, 17 Jan 2023 18:15:18 -0500 Jaimini Desai Apple to Reportedly Unveil VR Headset http://www.pws.io/apple-to-reportedly-unveil-vr-headset <p class='black-text'>According to unconfirmed reports, Apple <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AAPL"><span style="color:#333">(</span><span style=";">AAPL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AAPL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AAPL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AAPL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> is gearing up to unveil its VR headset at its next Worldwide Developer's Conference later this year. This would mark the company's first major hardware product since the Apple Watch which is a smashing success by most company's metrics but only a modest success for Apple.</p><p class='black-text'>It's expected that it will be dubbed a 'mixed reality' headset and is expected to be introduced this spring and be available for purchase in June with deliveries in the fall or winter. The device is expected to support virtual reality (VR) and augmented reality (AR) purposes and fetch a price tag of $3,000.</p><p class='black-text'>This is expected to be Apple's major new product line and is expected to feature some of the newest VR and AR technology which so far has failed to penetrate the mainstream market. Some of the rumors mention the inclusion of advanced eye scanning technology for login and payments, a physical dial for controlling functions, AirPod integration, and a new operating system.</p><p class='black-text'>The device is internally dubbed as 'Reality Pro' and has been revealed to select developers so that the device will have an assortment of apps and software when it is finally released. The company has also prioritized releasing 'Reality Pro' by the end of the year which means that it's shifted resources away from its legacy products.</p><p class='black-text'>Other than this new headset, there are no expectations about major changes to the Apple lineup, other than the typical annual upgrades to the iPhone, iPad, Macs, AirPods, and Apple Watch. It's expected that iOS17 will also have much fewer changes given the company's primary focus is on launching the headset with a suite of supporting apps.</p><p class='black-text'>Some of the incremental upgrades expected in the coming year include the iPad and Macbooks. In 2024, the new iPad Pro is expected to be released in 2024 with an OLED screen. The 15-inch MacBook Air has a new 15.5-inch display and is built with the M2 Ultra Chip. Some upgrades are planned to the HomePod which will get an updated touch control panel and an S8 chip.</p> http://www.pws.io/apple-to-reportedly-unveil-vr-headset Tue, 17 Jan 2023 18:13:49 -0500 Jaimini Desai The Difficult Road to a $7,500 Electric Vehicle Tax Credit http://www.pws.io/the-difficult-road-to-a-7500-electric-vehicle-tax-credit <p class='black-text'><a href="https://www.irs.gov/newsroom/frequently-asked-questions-about-the-new-previously-owned-and-qualified-commercial-clean-vehicles-credit">Tax credits for electric vehicles</a> (EV) have been available in some form since 2005, but the <a href="https://www.npr.org/2022/08/22/1118052620/tax-credit-electric-cars-vehicles-tesla-gm-inflation-reduction-act-climate">system was overhauled</a> as a part of the Inflation Reduction Act. The revamp is meant to encourage domestic manufacturing, but it also made determining <a href="https://www.npr.org/2023/01/07/1147209505/electric-car-tax-credit-climate-bill-tesla-volkswagen-ev">eligibility much more complicated</a>.</p><p class='black-text'>The first change took effect as soon as President Joe Biden signed the legislation into law in August 2021. The requirements around which vehicles qualify for the credit changed, making some vehicles no longer eligible while adding others to <a href="https://www.irs.gov/credits-deductions/manufacturers-and-models-for-new-qualified-clean-vehicles-purchased-in-2023-or-after">the list</a>. More notably, excluding used EVs, the law also made it so only vehicles assembled in North America qualify for the tax credit, something buyers may need to <a href="https://afdc.energy.gov/laws/electric-vehicles-for-tax-credit">look up themselves</a>.</p><p class='black-text'>On January 1 of this year, a price cap and income restrictions came into effect, further complicating eligibility.</p><p class='black-text'>Under the price cap, only used EVs under $25,000, new cars and sedans under $55,000, and new trucks, vans, and SUVs under $80,000 are eligible for the credit. The line between what counts as a car and what counts as a SUV isn't always clear, meaning customers may need to check the IRS website to learn which cap applies to a vehicle they're interested in purchasing.</p><p class='black-text'>Unfortunately, the caps shown on that website are also subject to change: in one case, <i>NPR</i> reports that the price cap for a Ford vehicle changed from one week to the next without warning, something the IRS blamed on a typo.</p><p class='black-text'>Under the newly introduced income limits, only Americans making a certain amount of money are able to access the tax credit. Households can make a maximum adjusted gross income of $300,000, individuals can make up to $150,000, and heads of household can make up to $225,000.</p><p class='black-text'>On the other hand, only buyers who owe at least $7,500 will be able to take full advantage of the tax credit due to how it's distributed. The credit is applied against your tax bill, and you won't receive the excess in a refund.</p><p class='black-text'>Yet another restriction on eligibility may come into play starting this March. A certain percentage of the EV's battery components will have to be sourced either from North America or a country with a U.S. fair trade agreement, and some part of the manufacturing and assembly of the battery will have to occur in North America, as well. These restrictions can't apply until the IRS establishes specific rules, something that won't come until March at the earliest.</p><p class='black-text'>The takeaway is that buyers have to fit a certain income bracket and will most likely need to check multiple government sites to determine a vehicles eligibility, which still may not be enough. This also doesn't cover the special credits available for business vehicles and the special rules for leased EVs. The most sure way to get an answer is to consult with a tax expert.</p><p class='black-text'>On the positive side, things might get much more convenient for buyers come 2024. As of 2024, the credit won't be applied to your tax bill but will instead be available as a rebate against the price of the vehicle at the point of purchase. This means you won't have to wait to determine if the vehicle qualifies, and you'll be able to access the entire $7,500 credit, no matter your tax burden.</p> http://www.pws.io/the-difficult-road-to-a-7500-electric-vehicle-tax-credit Tue, 17 Jan 2023 18:11:34 -0500 Autumn McLain Delta and T-Mobile are Making In-Flight Wi-Fi Free for SkyMiles Members http://www.pws.io/delta-and-t-mobile-are-making-in-flight-wi-fi-free-for-skymiles-members <p class='black-text'>Delta Air Lines <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DAL"><span style="color:#333">(</span><span style=";">DAL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DAL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DAL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DAL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and T-Mobile <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TMUS"><span style="color:#333">(</span><span style=";">TMUS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TMUS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TMUS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TMUS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> plan to start providing air travelers with free WiFi starting February 1 for Delta SkyMiles Members.</p><p class='black-text'>Delta CEO Ed Bastian said that 80% of Delta Airlines' domestic fleet will be in service for the month of February. This free WiFi will be available through T-Mobile in a newfound collaboration.</p><p class='black-text'>"At T-Mobile, we believe staying connected while traveling should be an easy, seamless experience," Mike Sievert, T-Mobile CEO, stated. "T-Mobile customers already get free in-flight Wi-Fi, and now we're partnering with Delta to bring that experience to all SkyMiles Members so that anyone flying Delta can enjoy online access from takeoff to touchdown."</p><p class='black-text'>Delta SkyMiles is the air carrier's frequent-flyer program that offers points to passengers on most fares, as well as to consumers who use Delta co-branded credit cards.</p><p class='black-text'>In the year 2023, travel is anticipated to increase significantly with people generally feeling like they are looking forward to traveling more so than they did in 2022. Although not all flights will carry free WiFi, at least at first, over 700 planes should have them by the end of 2023. In 2024, Delta plans to implement international and regional routes. In order to become enrolled in the free WiFi program, all that users are required to do is sign up for the SkyMiles number, which is completely free of charge.</p><p class='black-text'>According to T-Mobile, this service will be accessible on smartphones, tablets, and laptops. Beginning in the spring, the WiFi connection portal will show something known as the Delta Sync Exclusives hub, which will provide much more personalized content. It seems that for most travelers, remaining in touch with each other has become of paramount importance.</p><p class='black-text'>"The ability to stay connected while seeing the world is simply foundational. Delta's new partnership with T-Mobile signifies another exciting step forward as we lead the industry in delivering a differentiated onboard experience that's as comfortable and personalized as sitting in your own living room," said Bastian.</p> http://www.pws.io/delta-and-t-mobile-are-making-in-flight-wi-fi-free-for-skymiles-members Tue, 17 Jan 2023 18:08:44 -0500 Stephanie Williams JPMorgan Shares Higher Despite Warning of Recession Risk http://www.pws.io/jpmorgan-shares-higher-despite-warning-of-recession-risk <p class='black-text'>JPMorgan <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/JPM"><span style="color:#333">(</span><span style=";">JPM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="JPM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="JPM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="JPM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares initially opened 3% lower after the company handily exceeded analysts' estimates on the top and bottom lines but issued cautious commentary about the macro environment. Traders furiously bought the dip as shares closed up by more than 2.5%. The stock is now at a six-month high, and it's up by more than 40% from the October low.</p><p class='black-text'>Given JPMorgan's size and diversified business in addition to traditionally kicking off earnings season, the bank's results are seen as a bellwether for the economy. And like the economy, the company continues to perform well despite numerous headwinds.</p><p class='black-text'><i>Inside the Numbers</i></p><p class='black-text'>In Q4, JPMorgan reported $3.57 in earnings per share which were well above analysts' consensus estimate of $3.07 in earnings per share. Revenue also came in above expectations at $35.6 billion vs $34.3 billion. Overall, earnings were up 6%, while revenue was 17% higher compared to 2021's Q4.</p><p class='black-text'>The biggest contributor to the bank's revenue and earnings beat was the strength in interest income which was up 48% due to strong loan demand and higher rates. In total, net interest income came in at $20.3 billion while analysts were looking for $19.3 billion.</p><p class='black-text'>One factor in its initial weakness was an unexpected $2.3 billion provision for credit losses which was nearly 50% higher than last year. Despite its strong quarter, the bank noted some 'modest deterioration in the Firm's macroeconomic outlook, now reflecting a mild recession in the central case'.</p><p class='black-text'>This wasn't too surprising to anyone who has been paying attention to CEO Jamie Dimon's public comments about the economy, where he has consistently struck a cautious tone. The bank's base case is a mild recession which will push the unemployment rate to 4.9%. Some of the risks it sees are continued geopolitical tensions, higher energy and food prices, purchasing power being eroded, and the Federal Reserve's aggressively hawkish policy.</p><p class='black-text'>In terms of guidance for 2023, the bank said it expects $73 billion in net interest income, and $81 billion in expenses, about $5 billion more than 2022 due to higher wages, higher headcount, and some planned investments in tech upgrades.</p> http://www.pws.io/jpmorgan-shares-higher-despite-warning-of-recession-risk Tue, 17 Jan 2023 18:01:06 -0500 Jaimini Desai Market Update: Dow Falls 400 Points as Goldman Earnings Weigh http://www.pws.io/market-update-dow-falls-300-points-as-goldman-earnings-weigh <p class='black-text'>Stocks finished mixed on Tuesday as market sentiment was weighed down by the latest earnings results. The Dow Jones Industrial Average fell nearly 400 points, while the S&P 500 Index dipped 0.2% and the Nasdaq Composite rose 0.15%.</p><p class='black-text'><b>Here's how the market settled on Tuesday: </b></p><p class='black-text'>S&P 500 Index <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SPY"><span style="color:#333">(</span><span style=";">SPY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SPY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SPY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SPY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: -0.20% or -8.12 points to 3,990.97</p><p class='black-text'>Dow Jones Industrial Average <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DIA"><span style="color:#333">(</span><span style=";">DIA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DIA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DIA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DIA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: -1.14% or -391.76 points to 33,910.85</p><p class='black-text'>Nasdaq Composite Index <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/QQQ"><span style="color:#333">(</span><span style=";">QQQ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="QQQ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="QQQ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="QQQ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: +0.14% or +15.96 points to 11,095.11</p><p class='black-text'>Pulling the Dow lower, Goldman Sachs <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/GS"><span style="color:#333">(</span><span style=";">GS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="GS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="GS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="GS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> reported its worst earnings miss in a decade for the fourth quarter, posting a larger-than-expected 69% drop in quarterly profit as declines in investment banking and asset management revenues weighed on the bank. The stock finished down over 6%.</p><p class='black-text'>Rival Morgan Stanley <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MS"><span style="color:#333">(</span><span style=";">MS</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MS" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MS" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MS" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, meanwhile, reported a smaller-than-expected decline in quarterly profit last quarter, with its wealth management business posting a record quarter. However, like its peers, Morgan Stanley reported a decline in its investment banking operations. Shares jumped nearly 6%.</p><p class='black-text'>Tuesday's earnings results followed mixed quarterly reports from other major banks such as JPMorgan Chase <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/JPM"><span style="color:#333">(</span><span style=";">JPM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="JPM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="JPM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="JPM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Citigroup <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/C"><span style="color:#333">(</span><span style=";">C</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="C" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="C" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="C" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>.</p><p class='black-text'>Elsewhere, Bank of America <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/BAC"><span style="color:#333">(</span><span style=";">BAC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="BAC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="BAC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="BAC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> forecasts that a recession probably won't happen until later in 2023 as consumer spending remains stronger-than-expected and the Federal Reserve eases its interest rates hikes.</p><p class='black-text'>"We push back the timing of our outlook for a mild recession in the U.S. economy by about one quarter given durability in consumer spending on account of strong labor markets, excess savings, declining energy prices, and easier financial conditions," the firm said in a client note, <a href="https://www.cnbc.com/2023/01/16/stock-futures-tick-lower-as-investors-look-to-corporate-earnings.html">quoted by </a><i><a href="https://www.cnbc.com/2023/01/16/stock-futures-tick-lower-as-investors-look-to-corporate-earnings.html">CNBC</a></i>. "That said, we think the headwinds will lead consumers to reduce spending and push the saving rate higher as the year progresses."</p><p class='black-text'>The tech sector is set to kick-off its earnings season this week, with a report from Netflix <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/NFLX"><span style="color:#333">(</span><span style=";">NFLX</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="NFLX" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="NFLX" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="NFLX" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> slated for Thursday. The streaming giant's report is expected to forecast the health of the tech sector, with other major tech earnings from companies like Microsoft <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MSFT"><span style="color:#333">(</span><span style=";">MSFT</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MSFT" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MSFT" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MSFT" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Tesla <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TSLA"><span style="color:#333">(</span><span style=";">TSLA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TSLA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TSLA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TSLA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> set for next week.</p><p class='black-text'>This week will also have talks from global business leaders as they meet in Davos, Switzerland for the World Economic Forum. Politicians, CEOs and billionaires will speak on the possibility of a global recession, lingering post-pandemic supply chain issues, climate change, and Russia's war with Ukraine.</p><p class='black-text'>The session's moves follow a long weekend, with the U.S. stock market closed on Monday in observance of Martin Luther King Jr. Day. On Friday, all three major averages posted their second consecutive winning week.</p> http://www.pws.io/market-update-dow-falls-300-points-as-goldman-earnings-weigh Tue, 17 Jan 2023 15:03:53 -0500 Rachel Hemple SBF Responds to Charges: "I Didn't Steal Funds" http://www.pws.io/sbf-responds-to-charges-i-didnt-steal-funds <p class='black-text'><a href="https://www.pws.io//ftxs-sam-bankman-fried-arrested">Facing criminal charges</a> for fraud, money laundering, and campaign finance violations, the founder and former-CEO of FTX, Sam Bankman-Fried, <a href="https://sambf.substack.com/p/ftx-pre-mortem-overview">responded at length</a> to the accusations against him on Thursday, January 12, claiming that "no funds were stolen" during <a href="https://www.pws.io//whats-going-on-with-ftx">the collapse of FTX</a>.</p><p class='black-text'>Much of what Bankman-Fried wrote in his "Pre-Mortem Overview", posted on Substack, reiterates statements he's made that have already been discounted by industry experts, <a href="https://www.nytimes.com/2023/01/12/technology/sam-bankman-fried-fraud-charges.html">according to <i>The New York Times</i></a>.</p><p class='black-text'>Alongside a detailed timeline of Alameda's financial outlook leading up to FTX's collapse, Bankman-Fried argued that the fund's failure was the result of unforeseen market crashes. He also suggested that Binance's attempted purchase of FTX also contributed to the platform's implosion.</p><p class='black-text'>"I didn't steal funds, and I certainly didn't stash billions away," the former crypto mogul wrote. "Nearly all of my assets were and still are utilizable to backstop FTX customers."</p><p class='black-text'>Several of Bankman-Fried's other key points revolve around a recent announcement that the lawyers overseeing FTX's bankruptcy had <a href="https://www.reuters.com/business/finance/ftx-seeks-court-rulings-asset-sales-customer-privacy-2023-01-11/">recovered $5 billion in seized funds</a>. Previously, FTX's attorneys had estimated that the company's seized assets were worth as little as $170 million.</p><p class='black-text'>Bankman-Fried claimed the $5 billion recovery shows that FTX had been prematurely "pressured" into filing for bankruptcy despite holding "significant assets", and that FTX deposits could still be "substantially" recovered.</p><p class='black-text'>"I believe that, had FTX International been given a few weeks, it could likely have utilized its illiquid assets and equity to raise enough financing to make customers substantially whole," Bankman-Fried wrote. "Even now, I believe that if FTX International were to reboot, there would be a real possibility of customers being made substantially whole."</p><p class='black-text'>Neither the attorneys for FTX or Sam Bankman-Fried responded to journalists' requests for comment on the former-CEO's post. The post doesn't include any statements suggesting it was approved by Bankman-Fried's legal team, and legal experts say that it probably wasn't his attorney's idea.</p><p class='black-text'>"The most powerful evidence a prosecutor can have is the defendant's own words, and Bankman-Fried is giving the government a gift," former federal prosecutor Moira Penza told <i>The New York Times</i>. "If I were prosecuting the case, I would want him to keep talking, and if I were defending him I would be telling him to shut his mouth."</p><p class='black-text'>Immediately following FTX's collapse, Bankman-Fried went on a media tour to answer questions about his role in the platform's failure. After his arrest and subsequent release on bail, he's stayed comparatively silent, until now.</p><p class='black-text'>According to Bankman-Fried, he would have preferred to give his detailed statement earlier.</p><p class='black-text'>"I had been planning to give my first substantive account of what happened in testimony to the U.S. House Financial Services Committee on December 13th," Bankman-Freid wrote. "Unfortunately, the DOJ moved to arrest me the night before, preempting my testimony with an entirely different news cycle."</p><p class='black-text'>In his statement, Bankman-Fried didn't acknowledge that two of his former top executives, Caroline Ellison and Gary Wang, have both plead guilty to charges regarding FTX's collapse and are now cooperating with prosecutors. Ellison was the head of Alameda, and Wang was Bankman-Fried's co-founder at FTX.</p><p class='black-text'>"I have a lot more to say-about why Alameda failed to hedge, what happened with FTX U.S., what led to the Chapter 11 process, S&C, and more," Bankman-Fried's post reads. "But at least this is a start."</p> http://www.pws.io/sbf-responds-to-charges-i-didnt-steal-funds Fri, 13 Jan 2023 18:46:46 -0500 Autumn McLain Taiwan Semiconductor Higher Despite Revenue Miss http://www.pws.io/taiwan-semiconductor-higher-despite-revenue-miss <p class='black-text'>Taiwan Semiconductor <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/TSM"><span style="color:#333">(</span><span style=";">TSM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="TSM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="TSM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="TSM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> shares were up 6% following the company's Q4 earnings report which showed a miss on the top line and a beat on the bottom line. The company also issued softer-than-expected guidance for the upcoming quarter.</p><p class='black-text'>The company is seen as a leading indicator of the semiconductor industry given that it's a producer of chips for companies like Nvidia <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/NVDA"><span style="color:#333">(</span><span style=";">NVDA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="NVDA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="NVDA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="NVDA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Apple <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/AAPL"><span style="color:#333">(</span><span style=";">AAPL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="AAPL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="AAPL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="AAPL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>.</p><p class='black-text'>Taiwan Semiconductor's revenue miss isn't exactly surprising given that consumer and enterprise demand for tech products has been steadily declining in 2022. One factor is that tech spending exploded during the pandemic, pulling forward future demand, due to stimulus payments and companies shifting to remote work. Yet, the positive reaction to the earnings miss could be an indication that these near-term headwinds have already been priced into the stock.</p><p class='black-text'><i>Inside the Numbers</i></p><p class='black-text'>In Q4, Taiwan Semiconductor reported $1.82 in earnings per share which was slightly higher than estimates of $1.80 in earnings per share. However, revenue also came in below expectations at $19.9 billion vs $20.8 billion. Overall, this was a 30% increase in revenue, while earnings were higher by 57%.</p><p class='black-text'>The company's 5-nanometer chips contributed 32% of its total revenue, while 7-nanometer chips generated 22% of its total revenue. For Q1, the company sees revenue between $16.7 billion and $17.5 billion. Wall Street analysts had a Q1 revenue forecast of $17.7 billion which equates to revenue growth of just 1%. The company noted weakness in nearly all of its end markets including data center chips, which had been a major growth driver for the industry.</p><p class='black-text'>In a statement accompanying the earnings release, CFO Wendell Huang said, "Our fourth-quarter business was dampened by end-market demand softness, and customers' inventory adjustment, despite the continued ramp-up for our industry-leading 5-nanometer technology. Moving into first-quarter 2023, as overall macroeconomic conditions remain weak, we expect our business to be further impacted by continued end-market demand softness, and customers' further inventory adjustment."</p><p class='black-text'>Overall, Taiwan Semiconductor's stock is ripping higher despite an assortment of bad news. This is similar to what we are seeing in many stocks and sectors, given that inflation seems to be trending lower which is providing relief on the rate front, and there is increasing evidence of a re-acceleration in economic growth.</p> http://www.pws.io/taiwan-semiconductor-higher-despite-revenue-miss Fri, 13 Jan 2023 18:44:00 -0500 Jaimini Desai Will Impressive Rally in Chinese Stocks Hold?, China ETF in Focus http://www.pws.io/will-impressive-rally-in-chinese-stocks-hold-china-etf-in-focus <p class='black-text'>Financial markets often act in counterintuitive ways that leave the majority of investors on the sidelines or on the wrong side of the trade. We are seeing something similar happen as the<b> iShares China Large-Cap ETF</b> <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/FXI"><span style="color:#333">(</span><span style=";">FXI</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="FXI" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="FXI" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="FXI" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> is up nearly 50% since the October lows. And, this outperformance has only accelerated in 2023.</p><p class='black-text'>The biggest impetus for this outperformance is the country embarking on relaxing its Covid-zero policies regardless of the collateral damage. Previously, the country had relaxed its stance only to reinstate lockdowns at the first sign of rising cases. However, it's clear that there is a real pivot in its policy as the country seems to be prioritizing economic growth over limiting case counts, in addition to massive public opposition to continuing these policies.</p><p class='black-text'>Already, there are strong rebounds in all sorts of indicators like the number of cars on the road, ridership on metro stations, and domestic air travel. Another policy change is that its crackdown on large businesses seems to be over which is another sign that business is returning to normal.</p><p class='black-text'>The combination of uncertainty around the country's lockdowns, COVID policies, and weak global growth over the past couple of years resulted in Chinese stocks being major underperformers relative to the rest of the world.</p><p class='black-text'>Of course, another factor has been rising tensions between the U.S. and China with many believing that Chinese stocks listed in the U.S. could be collateral damage. Even here, there are signs of improvement as President Xi seems to back away from Russia, while he has sidelined some of the most prominent anti-U.S. voices in the government. It's a change from the harsh tone that has defined interactions between the two countries.</p><p class='black-text'>In fact, the Shanghai Stock Exchange is down 40% from its 2015 peak, while the S&P 500 <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SPY"><span style="color:#333">(</span><span style=";">SPY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SPY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SPY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SPY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> is nearly 100% higher even after the recent bear market. Zooming back even more, we can see that the Shanghai stock exchange has been range-bound since 2005. And, this range has been narrowing over time.</p><p class='black-text'>Typically, these ranges tend to break dramatically in one direction or another. For a couple of years, it's been fashionable to bet that the range would break to the downside given the numerous headwinds. Yet, many of these headwinds were self-imposed and now moving in a much more supportive direction. On top of this, Chinese stocks are quite cheap with many of the largest companies trading at single-digit multiples.</p> http://www.pws.io/will-impressive-rally-in-chinese-stocks-hold-china-etf-in-focus Fri, 13 Jan 2023 18:41:56 -0500 Jaimini Desai Sony, Honda Announce New Electric Car Brand, Afeela http://www.pws.io/sony-honda-announce-new-electric-car-brand-afeela <p class='black-text'>Sony <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SONY"><span style="color:#333">(</span><span style=";">SONY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SONY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SONY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SONY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> and Honda <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/HMC"><span style="color:#333">(</span><span style=";">HMC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="HMC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="HMC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="HMC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> recently announced plans to create and sell electric vehicles together, known under the new joint venture "Afeela." These types of vehicles in particular (known as "moving entertainment spaces" by Sony CEO Kenichiro Yoshida) will prioritize self-driving abilities.</p><p class='black-text'>Back when Sony and Honda had initially decided that this new electric vehicle will be created at Honda's American factory, it was agreed upon that Level 3 driving abilities would be enabled. Although not much information has been gathered about Afeela, Sony Honda Mobility CEO Yasuhide Mizuno stated that this new electric vehicle would combine the typical Sony experience with artificial intelligence, entertainment, and virtual reality in order to make the new car different and unique.</p><p class='black-text'>"Afeela represents our concept of an interactive relationship where people feel the sensation of interactive mobility and where mobility can detect and understand people and society by utilizing sensing and AI technologies," Mizuno said in a statement.</p><p class='black-text'>One reason that Afeela will be launching at the United States' location is that electric vehicles are already starting to become popular in North America. It will have many interesting features, such as a light bar on the outside of it that can be utilized "to express itself to surrounding people using light, enabling interactive communication between mobility and people."</p><p class='black-text'>In addition to this new feature on the exterior of the Afeela, various forms of entertainment will be provided (such as music, movies, or gaming) through a deal with Epic Games.</p><p class='black-text'>"At Epic we are passionate about cars and the automotive industry, and we couldn't be happier to see Sony and Sony Honda Mobility enter the innovative world of mobility and automotive technology. Together with them, we look forward to bringing you exciting updates within this revolutionary space," Epic Games Chief Technical Officer Kim Libreri said.</p><p class='black-text'>Specs for Afeela will be 400kW, dual-motor, all-wheel drive, 0-100 km/hr in 4.8 seconds, to name a few. Although data on prices or battery sizes are not yet available, Afeela's sensing and infotainment abilities will be fairly strong. It will contain 40 sensors, with camera, radar, ultrasonic, and lidar, and be able to pick up on surrounding objects, as well as drive autonomously.</p> http://www.pws.io/sony-honda-announce-new-electric-car-brand-afeela Fri, 13 Jan 2023 18:32:13 -0500 Stephanie Williams Market Update: Dow Rises 100 Points, S&P and Nasdaq Post Second Week of Gains as Earnings Season Kicks Off http://www.pws.io/market-update-dow-rises-100-points-sp-and-nasdaq-post-second-week-of-gains-as-earnings-season-kicks- <p class='black-text'>Stocks rose higher on Friday as market participants digested earnings reports from key financial heavyweights. The Dow Jones Industrial Average added over 100 points, while the S&P 500 Index and Nasdaq Composite gained 0.4% and 0.7%, respectively.</p><p class='black-text'><b>Here's how the market settled to close out the week: </b></p><p class='black-text'>S&P 500 Index <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SPY"><span style="color:#333">(</span><span style=";">SPY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SPY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SPY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SPY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: +0.40% or +15.92 points to 3,999.09</p><p class='black-text'>Dow Jones Industrial Average <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DIA"><span style="color:#333">(</span><span style=";">DIA</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DIA" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DIA" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DIA" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: +0.33% or +112.64 points to 34,302.61</p><p class='black-text'>Nasdaq Composite Index <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/QQQ"><span style="color:#333">(</span><span style=";">QQQ</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="QQQ" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="QQQ" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="QQQ" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>: +0.71% or +78.05 points to 11,079.16</p><p class='black-text'>Friday's moves helped cement a winning week on Wall Street, with the S&P 500 and Nasdaq both posting their second consecutive positive week and their best weekly performance since November. The Nasdaq outperformed for the week, adding 4.82%, while the S&P 500 rose 2.67%, and the Dow gained 2%.</p><p class='black-text'>Driving market moves, multiple big banks and other financial giants on Wall Street reported quarterly earnings Friday morning.</p><p class='black-text'>JPMorgan Chase <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/JPM"><span style="color:#333">(</span><span style=";">JPM</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="JPM" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="JPM" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="JPM" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> posted better-than-expected earnings, with revenue rising 7.2% annually at $11.1 billion in the fourth quarter. CEO Jamie Dimon commenting that "the U.S. economy currently remains strong with consumers still spending excess cash and businesses healthy. However, we still do not know the ultimate effect of the headwinds," including geopolitical tensions, rising interest rates and persistently high inflation.</p><p class='black-text'>Bank of America <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/BAC"><span style="color:#333">(</span><span style=";">BAC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="BAC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="BAC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="BAC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> also posted better-than-expected revenue at $24.5 billion, which was 11% higher than last year's fourth quarter. On a call with investors, CEO Brian Moynihan said the bank's baseline scenario for the economy this year "contemplates a mild recession."</p><p class='black-text'>Wells Fargo <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/WFC"><span style="color:#333">(</span><span style=";">WFC</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="WFC" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="WFC" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="WFC" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> also benefited from higher interest rates like its peers for its earnings, but its revenue came in below expectations at $19.7 billion compared to $20.9 billion a year ago. "As we look forward, we are carefully watching the impact of higher rates on our customers and expect to see deposit balances and credit quality continue to return toward pre-pandemic levels," CEO Charlie Scharf said in a statement.</p><p class='black-text'>Citigroup <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/C"><span style="color:#333">(</span><span style=";">C</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="C" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="C" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="C" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> reported fourth quarter revenue that topped estimates at $18.01 million, but its net income came in below expectations at $2.5 billion versus $3.2 billion a year ago. Still, CEO Jane Fraser said the company's Markets segment had its "best fourth quarter in recent memory".</p><p class='black-text'>BlackRock <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/BLK"><span style="color:#333">(</span><span style=";">BLK</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="BLK" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="BLK" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="BLK" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> also posted a fourth-quarter profit decline of 18% due to the global market rout impacting the asset manager's fee income. BlackRock noted in a statement that its 8% year-to-year decline in full-year revenue was also due to "significantly lower markets and dollar appreciation on average AUM and lower performance fees."</p><p class='black-text'>Beyond financial stocks, Delta Air Lines <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/DAL"><span style="color:#333">(</span><span style=";">DAL</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="DAL" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="DAL" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="DAL" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> reported fourth-quarter profit and revenue that topped expectations. "As we move into 2023, the industry backdrop for air travel remains favorable and Delta is well positioned to deliver significant earnings and free cash flow growth," CEO Ed Bastian said in a statement.</p><p class='black-text'>Virgin Galactic <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SPCE"><span style="color:#333">(</span><span style=";">SPCE</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SPCE" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SPCE" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SPCE" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> rose nearly 13% on Friday after the space tourism company announced it was on track for a commercial launch in the second quarter of 2023.</p><p class='black-text'>Elsewhere, the University of Michigan reported its consumer sentiment index rose for a second straight month to 64.6 from 59.7 in December in January's preliminary reading. Still, the index remains at historic lows.</p><p class='black-text'>"Uncertainty over both inflation expectations measures remains high, and changes in global factors in the months ahead may generate a reversal in recent improvements," Joanne Hsu, director of the Surveys of Consumers, said in a statement.</p> http://www.pws.io/market-update-dow-rises-100-points-sp-and-nasdaq-post-second-week-of-gains-as-earnings-season-kicks- Fri, 13 Jan 2023 18:28:10 -0500 Rachel Hemple McDonald's Announces Cutbacks as Part of New Strategy http://www.pws.io/mcdonalds-announces-cutbacks-as-part-of-new-strategy <p class='black-text'>McDonald's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/MCD"><span style="color:#333">(</span><span style=";">MCD</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="MCD" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="MCD" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="MCD" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> announced last Friday that it would trim corporate staff, shift priorities and accelerate new store openings as part of a revamped strategy aimed at capturing new demand, according to an emailed statement from CEO Chris Kempczinski.</p><p class='black-text'>In his email, the Golden Arches CEO didn't say which initiatives the company would wind down or the specific cuts it would make but said the plans would be final by April 3. The CEO added that the cutbacks and priority shifts were aimed at helping the company "move faster" and were not the result of cost savings.</p><p class='black-text'>"Today, we're divided into silos with a center, segments, and markets," Kempczinski wrote. "This approach is outdated and self-limiting - we are trying to solve the same problems multiple times, aren't always sharing ideas, and can be slow to innovate."</p><p class='black-text'>The fast food giant's new strategy is dubbed "Accelerating the Arches 2.0" and aims to help the company free up resources for growth, especially resources needed to open new locations.</p><p class='black-text'>"We must accelerate the pace of our restaurant openings to fully capture the increased demand we've driven over the past few years," wrote Kempczinski.</p><p class='black-text'>The Golden Arches has been testing new restaurant concepts lately, especially seemingly scaled-back locations that the company can open quickly. Recently, a drive-thru, delivery-focused concept restaurant in Fort Worth made headlines as the first "fully automated" McDonald's. The company hasn't announced a specific number of locations it plans to open this year, but said last year that sales from new stores would contribute 1.5% to sales growth.</p><p class='black-text'>Meanwhile, last Friday's strategy shift, "Accelerating the Arches 2.0" builds off the company's first "Accelerating the Arches" plan first laid out in 2020. Back then, the company pared back its menu to focus on key items, namely chicken, burgers, and coffee, while emphasizing the "three D's" of "delivery, drive-thru, and digital ordering. AA 2.0 adds a new D to the mix, development.</p><p class='black-text'>To help the Arches execute its new plan, Kempczinski also announced a spate of internal promotions and the creation of several new positions in the email. A new president of global business services will help the restaurant chain "leverage economies of scale," according to the company. Meanwhile, Kempczinski's announced the new role of Chief Transformation Officer, whose chief responsibility will be to keep the company's new strategy on track.</p><p class='black-text'>It sounds like they want to reorganize the company into different structures to grow faster," BTIG LLC analyst Peter Saleh, told <i>Bloomberg</i>. "Maybe they feel like they don't have the right people in place."</p> http://www.pws.io/mcdonalds-announces-cutbacks-as-part-of-new-strategy Fri, 13 Jan 2023 15:28:20 -0500 David Fladger Celebrities, Sports Stars, and Finance Legends Among FTX's Investors Being Wiped Out http://www.pws.io/celebrities-sports-stars-and-finance-legends-among-ftxs-investors-being-wiped-out <p class='black-text'>When we look at some of the most spectacular blowups of the past decade such as Theranos and WeWork <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/WE"><span style="color:#333">(</span><span style=";">WE</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="WE" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="WE" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="WE" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr>, there are some eerie similarities. All were led by charismatic CEOs who received glowing profiles from the media which enhanced their aura and credibility.</p><p class='black-text'>Each company was also bolstered by the backing of an elite group of people whose involvement encouraged others to invest in the company. It's a reminder that celebrities, finance legends, and other dignitaries are just as vulnerable to being scammed or misled as anyone else. The only difference is that the collateral damage and media interest are greater.</p><p class='black-text'>With WeWork, legendary investors like Softbank's <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/SFTBY"><span style="color:#333">(</span><span style=";">SFTBY</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="SFTBY" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="SFTBY" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="SFTBY" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> Masayoshi Son and other well-known Silicon Valley VCs fell prey to founder Adam Neumann's charm and big vision. Similarly, with Theranos, there was a slew of dignitaries like General James Mattis and former Secretary of State George Schultz who truly believed she was the 'next Steve Jobs'.</p><p class='black-text'>Now, we are learning about the full roster of those who were mistaken to believe in FTX and its founder, Sam Bankman-Fried. The most notorious were Tom Brady and Gisele Bundchen, who were endorsers and investors in the company and whose investment was likely wiped out. Another successful businessman who was also ensnared in FTX is Robert Kraft, the owner of the New England Patriots, who remains a close confidante of Tom Brady.</p><p class='black-text'>Another is billionaire Paul Tudor Jones, who is a finance legend for successfully profiting from some of the most volatile events in recent history such as the dotcom crash, the crash of 1987, and the 2008 housing bubble. Another finance luminary whose investment will be wiped out is Third Point founder Dan Loeb and Daniel Och of Och-Ziff Capital through his family office, Willoughby Capital. It's ironic that Softbank was also an investor in FTX in addition to Singapore's sovereign wealth fund, Temasek.</p><p class='black-text'>Alibaba co-founder and Brooklyn Nets owner, Joe Tsai also was a major investor in FTX. Even Coinbase <nobr><span style="white-space: nowrap; display:inline-block"><a href="http://www.pws.io/stock/COIN"><span style="color:#333">(</span><span style=";">COIN</span>&nbsp;<span class="updatable-ticker text alert" data-symbol="COIN" data-type="direction_class" data-up="success" data-down="alert"><i data-symbol="COIN" data-type="direction_class" data-up="fa-arrow-up" data-down="fa-arrow-down" class="updatable-ticker fa"></i>&nbsp;<span class="updatable-ticker" data-symbol="COIN" data-type="changePercent"></span></span><span style="color:#333">)</span></a></span></nobr> which was a competing exchange had 1.3 million preferred shares of FTX.</p><p class='black-text'>In total, FTX had four fundraising rounds and a peak valuation of $32 billion. Sequoia Capital, a legendary VC fund with a long track record of successful bets, wrote down its $210 million investment in the company to zero. Given that it's doubtful that customers will get full recovery of their money, the chances that equity holders will receive any compensation is close to zero.</p> http://www.pws.io/celebrities-sports-stars-and-finance-legends-among-ftxs-investors-being-wiped-out Fri, 13 Jan 2023 15:24:09 -0500 Jaimini Desai