Wednesday, April 27, 2022
Ford just reported a $3.1 billion loss. Blame Rivian - CNN
New York (CNN Business)In the days after its November IPO, electric truck maker Rivian was briefly one of the world's most valuable automakers despite not yet having reported a single sale. But its stock has been sliding steadily since then, which just resulted in a big loss for.....Ford?
Ford just reported a $3.1 billion loss. Blame Rivian - CNN
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Over 120,000 pounds of ground beef recalled over possible E.coli contamination - ABC News
Check the product codes and labels in your fridge and freezer.
Over 120,000 pounds of ground beef products are being recalled over possible E.Coli contamination.
The affected products come from Lakeside Refrigerated Services, located in Swedesboro, New Jersey, and were produced between Feb. 1, 2022, through April 8, 2022, and distributed to locations nationwide, the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) announced Wednesday.
The E.Coli contamination was discovered during routine testing, according to the FSIS, and no illnesses have been reported.
What products are subject to the recall?
The FSIS posted a complete list of beef products subject to the recall as well as labels that appear on the impacted ground beef products to help consumers identify affected products. See the label list here.
Brands including Thomas Farms, SE Grocer's Naturally Better, Tajima, Marketside Butcher and Weis by Nature are among those impacted.
The FSIS urges consumers to throw away or return affected products. Learn more here.
Lakeside Refrigerated Services is available to answer consumer questions via email (customercare@lakesiderefrigerated.com) or by phone (800-493-9042).
What are the symptoms of E.Coli bacteria?
People can become ill two to eight days after consumption of E.Coli bacteria. Symptoms of E.Coli bacteria include vomiting or diarrhea that worsens over several days, according to the Centers for Disease Control and Prevention. Most people recover within a week; some may develop a more severe infection.
Over 120,000 pounds of ground beef recalled over possible E.coli contamination - ABC News
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Archegos Founder Bill Hwang and CFO Charged With Securities Fraud - The Wall Street Journal
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- Archegos Founder Bill Hwang and CFO Charged With Securities Fraud The Wall Street Journal
- Archegos owner Bill Hwang, former CFO Patrick Halligan charged with fraud CNBC
- Archegos owner Bill Hwang, former CFO Patrick Halligan arrested by federal agents CNBC Television
- Explainer: Why Archegos Capital was in U.S. regulators' blind spot Reuters
- Archegos Founder Hwang Criminally Charged Bloomberg Markets and Finance
- View Full Coverage on Google News
Archegos Founder Bill Hwang and CFO Charged With Securities Fraud - The Wall Street Journal
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Tuesday, April 26, 2022
Walmart dangles deeper gas discounts to attract and retain members of subscription service - CNBC
As prices climb at the grocery store and gas station, Walmart said Wednesday that it will offer deeper discounts on fuel to nudge more customers to join and renew Walmart+.
Chris Cracchiolo, senior vice president and general manager of the subscription service Walmart+, said the everyday expense is on the minds of many shoppers, "especially in this very high inflationary environment." He said the retailer recently surveyed customers and about half said they were changing their behavior because of pricier fuel.
Walmart has looked to the subscription service, which launched about 18 months ago, as a way to expand its e-commerce business and encourage customers to boost store and website spending. It has also served as Walmart's answer to Amazon Prime.
Walmart+ costs $98 per year, or $12.95 per month. It includes free shipping of online purchases, free grocery deliveries to the home for orders of at least $35, prescription discounts and other benefits.
With inflation at a four-decade high, Walmart is flexing its low prices as a competitive advantage. Walmart CEO Doug McMillon told CNBC late last year that the company would use inflation as an opportunity to win customers. Early this month, the company aired a new TV commercial that stressed Walmart as the place to find value at a time when "every day seems to get more and more expensive."
That strategy carries over into Walmart+.
Starting Wednesday, Walmart+ members will be able to save up to 10 cents per gallon at more than 14,000 gas stations. The retailer already offered a fuel discount, but it has doubled the savings and increased the eligible gas stations more than sixfold through a partnership with Exxon Mobil.
Other companies, including Walmart-owned Sam's Club, BJ's Wholesale and Krispy Kreme, have also rolled out fuel-related discounts.
The national average for a gallon of regular gas cost $4.13 on Tuesday, according to AAA. That's up more than 43% from the year-earlier pump price of $2.89.
Cracchiolo, who previously spent nearly two decades at American Express, said Walmart decided to expand that perk after looking at members' fuel usage and hearing from both them and prospective members about the importance of that particular benefit.
Walmart does not share membership data publicly, but Cracchiolo said members are more lucrative and frequent shoppers than its nonsubscriber customers. What's more, Walmart+ members spend more than twice as much with the company as the typical Walmart shopper, since they shop both online and in stores.
"We know Walmart+ customers are more loyal to Walmart," he said. "They're giving us a higher share of their overall wallet. They transact with us more frequently and spend more on average than nonmembers, and that behavior is really because we've developed that trust and they see value in the program."
He added that the grocery part of the business is "at the core of how members shop with us."
Over the past year, Walmart has added more perks to entice customers. It gave members first dibs on deals and exclusive access to coveted gaming consoles during the holiday season. It also threw a members-only sales event, and started offering high-demand delivery time slots, such as on weekend mornings, to members only. And, in March, it tossed in a free six months of Spotify Premium to Walmart+ members.
Walmart also announced last month that all store and warehouse workers would get free membership as an employee benefit, allowing them to share feedback and have personal experience when recommending Walmart+ to customers.
Scot Ciccarelli, a retail analyst at Truist Securities, said Walmart, the nation's largest grocer, has an natural advantage over other companies with membership programs. He said consumers are less likely to cancel a program at a food retailer than they would for, say, a streaming service.
He said Amazon has shown the power of subscription services and how they drive purchases by making them fast and easy.
"The No. 1 thing you get from a subscription service if you get people to sign up is stickiness," Ciccarelli said. "You're kind of locked in. You've made the investment, you might as well use the service. Someone who was shopping with me two times a month, now maybe they're shopping with me four or five times a month."
Walmart dangles deeper gas discounts to attract and retain members of subscription service - CNBC
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Dow Jones Futures: Nasdaq Breaks Lower, Tesla Dives; Microsoft Pops Late - Investor's Business Daily
Dow Jones futures rose modestly overnight, along with S&P 500 futures and Nasdaq futures fell slightly, all reversing Tuesday evening losses as Microsoft stock and Google parent Alphabet (GOOGL) moved on earnings.
XThe stock market tumbled Tuesday, with the Nasdaq breaking below its March lows as Tesla (TSLA) plunged in reaction to CEO Elon Musk's Twitter (TWTR) deal.
In addition to Microsoft (MSFT) and Google stock, General Motors (GM), Edwards Lifesciences (EW), Visa (V) and Juniper Networks (JNPR) were among the many notable companies reporting late Tuesday. Early Wednesday, General Dynamics (GD) and Boeing (BA) are on tap.
Tesla stock and Microsoft are on IBD Leaderboard. MSFT stock and Google are on the IBD Long-Term Leaders list.
The video embedded in this article discusses Tuesday's market sell-off and analyzes Tesla stock, Waste Management (WM) and Cheniere Energy (LNG), another Leaderboard stock.
Dow Jones Futures Today
Dow Jones futures rose 0.5% vs. fair value. S&P 500 futures climbed 0.3%. Nasdaq 100 futures advanced 0.1%. Futures improved from Tuesday evening lows as Microsoft stock raced higher and Google cut overnight losses. Microsoft is a Dow Jones, S&P 500 and Nasdaq giant. Visa is a Dow and S&P 500 component while Google stock is on the S&P 500 and Nasdaq.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Key Earnings
Microsoft earnings topped fiscal Q3 results amid strong cloud-related growth. Microsoft stock initially fell but then rose 4.5% as the tech titan guided for strong cloud growth. Shares fell 3.7% on Tuesday to 270.22, matching its March low of 270 intraday.
Google earnings fell short while revenue was just a hair below estimates. The internet giant announced a $70 billion Google stock buyback. Google stock fell more than 2% overnight, though that was off their worst levels. Google sank 3.6% to 2,373 on Tuesday, at 10-month lows.
Edwards Lifesciences earnings narrowly topped views while the medical products maker reaffirmed guidance. EW stock skidded 5% in extended trade. Shares sank about 3% to 116.27 on Tuesday. Edwards stock broke out last week, but tumbled back below a buy point on Friday.
GM earnings fell but topped views, while revenue came in light. GM stock rose modestly after hours. Shares fell 4.5% on Tuesday to 38.04, the lowest close since late 2020.
Visa earnings comfortably beat consensus Visa stock rose 5% in overnight action. Shares retreated 4.2% on Tuesday to 201.10, losing sight of its 50-day and 200-day lines.
Juniper earnings just missed while revenue only edged past targets. JNPR stock fell sharply in extended action. Shares slid nearly 3% on Tuesday to 33.60, falling back from its 50-day line. Juniper stock had been holding up better than most tech stocks.
Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live
Stock Market Tuesday
A one-day stock market rally quickly fell apart as the major indexes sold off sharply. The Dow Jones Industrial Average fell 2.4% in Tuesday's stock market trading. The S&P 500 index retreated 2.8%, with Tesla stock and General Electric (GE) the biggest losers. The Nasdaq composite crumbled nearly 4%. The small-cap Russell 2000 tumbled 3.15%.
U.S. crude oil prices jumped 3.2% to $101.70 a barrel.
The 10-year Treasury yield fell 5 basis points to 2.77%.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) gave up 2.9%, while the Innovator IBD Breakout Opportunities ETF (BOUT) rose 0.7%. The iShares Expanded Tech-Software Sector ETF (IGV) retreated 3.7%, with Microsoft stock a major IGV holding. The VanEck Vectors Semiconductor ETF (SMH) skidded 4.3%.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) plunged 6.75% and ARK Genomics ETF (ARKG) 6%. Both hit their lowest levels since April 2020. The relative strength lines for ARKK and ARKG are at their lowest point in nearly five years, meaning investors would have been better off holding the S&P 500. Tesla stock is the No. 1 holding across Ark Invest's ETFs.
SPDR S&P Metals & Mining ETF (XME) lost 1.75% and the Global X U.S. Infrastructure Development ETF (PAVE) fell 2.2%. U.S. Global Jets ETF (JETS) descended 4.2%. SPDR S&P Homebuilders ETF (XHB) declined 2.3%. The Energy Select SPDR ETF (XLE) edged up 0.1% and the Financial Select SPDR ETF (XLF) slumped 2.5%. The Health Care Select Sector SPDR Fund (XLV) declined 1.8%
Five Best Chinese Stocks To Watch Now
Tesla Stock
Tesla stock plunged 12.2% on Tuesday to 876.42, tumbling below its 50-day moving average and even its 200-day.
Investors appear concerned that CEO Elon Musk will sell a significant part of his TSLA stock holdings to pay for his Twitter deal. Musk is financing the $44 billion Twitter takeover with $12.5 billion backed by some of his TSLA stock as well as another $21 billion in funding that he's personally guaranteed but offered few details on. Twitter stock fell 3.9% to 49.68 on Tuesday, creating a bigger gap from the $54.20 takeover price.
Tesla stock had been trading around the 1,000 mark for the past two weeks, which was encouraging. But in a market correction, stocks will sometimes hold up for a few days or even a few weeks before suddenly breaking hard.
Tesla stock still looks better than other EV and auto stocks and all the megacaps with the possible exception of Apple (AAPL). But that's not saying much.
Shares have not returned to mid-March levels, but have retraced all or nearly all of the gains since TSLA stock raced past its 200-day and 50-day lines.
Technically, TSLA stock still has a 1,152.97 cup-with-handle buy point, according to MarketSmith analysis. But the chart doesn't look right. It would be better if Tesla's handle developed into its own base.
The Ford F-150 Lightning production event Tuesday signals further U.S. competition for Tesla, which won't start making its Cybertruck until at least next year. Meanwhile, Tesla will almost certainly lose its EV crown in terms of vehicles sold in the second quarter to BYD (BYDDF), though the Chinese EV and battery giant will do so via EVs and hybrids combined.
When It's Time To Sell Your Favorite Stock
Market Analysis
The Nasdaq, S&P 500 and finally the Dow Jones undercut Monday's intraday lows, ending their one-day rally attempts. The Nasdaq undercut its March 14 low to its worst level in 13 months. The others are closing in on their 2022 lows. The Dow Jones did not fall below Monday's lows, so its stock market rally attempt is still hanging on, for now.
The major indexes are reeling with widespread damage throughout the market and don't seem to be signaling a bottom yet.
The CBOE Volatility Index, tied to the S&P 500 index, jumped to its highest point since mid-March, but the VIX is still well of its February highs. However, the CBOE Nasdaq Market Volatility Index is getting up to its late February/early March highs.
With Microsoft stock falling and Google tumbling overnight, fear may start to spike, especially with the major indexes tumbling as Tesla and Apple move below their 200-day lines.
Energy stocks tried to bounce back Tuesday, as crude oil prices reclaimed the $100 a barrel level. Fertilizer plays are finding key support ahead of earnings next week. Health insurers and pharma are still holding up OK, though a number of drug stocks are reporting over the next several days. Defense stocks appear to be finding support not far from buy points.
Waste Management flashed buy signals on its strong results, while Waste Connections (WCN) is hovering around a buy point.
But in most cases, even the strong groups have been trending lower over the past couple of weeks.
Time The Market With IBD's ETF Market Strategy
What To Do Now
The stock market is in a correction, and hasn't shown any real signs that the bleeding will stop soon. Investors should keep exposure at minimal levels or be entirely in cash.
Tuesday's big sell-off after Monday's bounce shows why investors shouldn't jump at the first uptick in a correction. This is a time to be looking for stocks that are holding up and have strong or rising RS lines. But as Tesla stock's sudden plunge showed, resilient names and sectors can suddenly break. This is a time for building watchlists, not executing new buys.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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Dow Jones Futures: Nasdaq Breaks Lower, Tesla Dives; Microsoft Pops Late - Investor's Business Daily
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Pfizer asks FDA to authorize third Covid vaccine shot for children 5 to 11 years old - CNBC
Pfizer and BioNTech on Tuesday asked the Food and Drug Administration to authorize a third dose of its Covid vaccine for children ages 5 to 11.
The application comes after Pfizer released data earlier this month from a small lab study of blood samples from 30 kids in the age group, which showed a 36-fold increase in antibody levels against the omicron variant after a third dose compared with two doses of the vaccine.
The booster shot is a 10-microgram dose, the same level as the primary vaccination series for the age group. The third shot did not demonstrate any new safety concerns in the trial, according to Pfizer.
Only about 28% of children ages 5 to 11 had received their primary series of two doses as of April, according to CDC data.
The FDA in January authorized Pfizer booster doses for teenagers 12 to 15 years old as the omicron variant swept the nation. The protection the vaccines provide against infection has declined over time, particularly in the context of omicron, which is adept at evading the antibodies that block the virus from infecting human cells. However, the vaccines are still providing strong protection against severe illness.
It's unclear whether the FDA's advisory committee will meet to discuss the data and make a recommendation. The FDA did not call meetings of the outside expert panel before authorizing third shots for kids ages 12 to 15 in January and fourth shots for people ages 50 and older last month.
Members of the FDA panel as well as the Centers for Disease Control and Prevention's advisory committee have criticized the agencies for repeatedly moving forward with expanded booster eligibility without consulting them. Several experts on the CDC committee, in a public meeting last week, said trying to stop infections with the current vaccines is an unachievable goal. The CDC committee members largely agreed that public health authorities should tell the public more clearly that the goal of the vaccines is to prevent severe illness, which the shots have largely achieved.
Pfizer is also seeking FDA authorization for its three-shot vaccine for children under 5 years old, the only age group left in the U.S. that is not eligible for vaccination. CEO Albert Bourla, in a podcast interview last week, said he hopes the vaccine for that age group will receive authorization in June. The shots for the youngest kids have a much smaller, 3-microgram dosage level.
Pfizer asks FDA to authorize third Covid vaccine shot for children 5 to 11 years old - CNBC
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