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Rich Otto, former head of product launches at Tesla, said he resigned last week. The executive said the recent Tesla layoffs have thrown the company "out of balance." Otto's departure follows six other senior-level Tesla executives leaving in recent weeks. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . The recent layoffs that are rocking the company and its morale have thrown this harmony out of balance and it's hard to see the long-game.
Persons: Rich Otto, , Tesla, he'd, Otto, Elon Musk Organizations: Tesla, Service, LinkedIn
Read previewWarren Buffett let slip a slew of intriguing facts and anecdotes during Berkshire Hathaway's annual shareholder meeting on Saturday. But the Berkshire CEO also warned of higher taxes, teased a potential Canadian investment, and revealed a $500 million gift of Berkshire stock. Cash hoardBerkshire's mountain of cash and Treasury hit a record $189 billion last quarter, and it's likely to swell to more than $200 billion this quarter, Buffett said. Taxing timesThe government will probably raise taxes in the coming years in a bid to balance its budget, Buffett said. Pocket changeBuffett claimed that if he had only $1 million to invest instead of nearly $200 billion, he could earn a 50% annual return.
Persons: , Warren Buffett, Buffett, he'd, Costco Buffett, Charlie Munger, Charlie, Talia Lakritz, he's, Todd Combs, Ted Weschler, Greg Abel, Greg, Munger, Abel, haven't, Ruth Gottesman, Sandy Gottesman, Brent N, Clarke, Garry Kasparov, Kasparov, B Organizations: Service, Paramount, Business, Treasury, Costco, Albert Einstein College of Medicine, Getty, Berkshire, Nebraska Furniture Locations: Berkshire, Russian, Omaha, Costco . Berkshire, Wisconsin, Canada, Nebraska
The University of Southern California’s academic senate voted on Wednesday to censure Carol Folt, the school’s president, after several tumultuous weeks in which the administration canceled the valedictory address of a Muslim student, cleared a protest encampment within hours and called in police last month to arrest dozens of protesters. The academic senate, which consists primarily of faculty members, also endorsed calls for an investigation into the administration’s actions. The vote represented only a fraction of the university's 4,700 faculty members, and the senate stopped short of taking a vote of no-confidence in the administrators, which would have been a harsher rebuke. Despite criticism, Dr. Folt has maintained considerable support from the university’s trustees, and some faculty members have quietly sympathized with her. Still, the vote was “significant” with “far-reaching implications,” said William G. Tierney, a professor emeritus of higher education at U.S.C., who has written about the response to campus protests across the nation.
Persons: Carol Folt, Folt, Andrew T, Guzman, , William G, Tierney Organizations: University of Southern Locations: U.S.C
We are exiting our position in Bausch Health , selling 2,930 shares at roughly $7.13. In addition, are buying 95 shares of Abbott Laboratories at roughly $104.53 and 125 shares of GE Healthcare at roughly $81. And we are still buying into weakness because shares of Abbott and GE Healthcare are down over the past month. Shares of Abbott have been in the doghouse since March due to litigation concerns for its baby formula business. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Persons: Jim Cramer's, Bausch, It's, Jim Cramer, Amneal, Abbott, Johnson, it's, GE Healthcare's, Jim Organizations: Bausch Health, Abbott Laboratories, GE Healthcare, ABT, GEHC, Amneal Pharmaceuticals, Abbott, Johnson, GE, Electric, Disney, Wynn Resorts, WYNN, CNBC Locations: BHC, Bausch's, China, U.S, Bausch
“I was depressed, severely depressed for that whole time.”Five months earlier, in October 2022, Bentley had started taking Mounjaro for weight loss. Ozempic uses the active ingredient semaglutide, and Wegovy is the version approved for weight loss. Mounjaro uses tirzepatide, which also targets a second hormone called GIP, and Zepbound is its brand name for weight loss. Safety in pregnancyEven as GLP-1 medicines may increase fertility, little is known about their safety during pregnancy. “It’s kind of like heart failure or sleep apnea,” he said, referring to conditions for which GLP-1 drugs have recently shown positive results.
Persons: CNN — Catera Bentley, Bentley, , , ” Bentley, she’d, , , ’ Bentley, Jody Dushay, Dushay, Catera Bentley, Ivy, Daniel Drucker, ” Drucker, they’re, Drucker, Eli Lilly, ” Dushay, haven’t, That’s, Anuja Dokras, Dokras, Melanie Cree, Cree, PCOS, aren’t, Eli Lilly’s, Daniel Skovronsky, ” Skovronsky, Dr, Sanjay Gupta, it’s, Mounjaro Organizations: CNN, Beth Israel Deaconess Medical Center, Harvard Medical School, University of, Mount Sinai, Novo Nordisk, Zepbound, US Centers for Disease Control, University of Pennsylvania, PCOS, Children’s Hospital, National Institutes of Health, CNN Health Locations: Steele , Alabama, Mount, United States, Children’s Hospital Colorado, , Colorado
Disney Why we own it: We value Disney for its best-in-class experiential entertainment Parks business, which has proven to have immense pricing power. In the second quarter, the combined business — Disney+, India's Disney+ Hotstar, Hulu and ESPN+ — saw losses of $18 million, far better than the $659 million loss in the year-ago period. DTC profitability benefited from Disney+ core subscriber growth, higher retail subscription prices, increased advertising revenue on the back of higher impressions, and lower distribution costs. Clearly, Disney still has a big opportunity in sports as they execute on their DTC streaming strategy for ESPN. The atmosphere at the Disney Bundle Celebrating National Streaming Day at The Row in Los Angeles on May 19, 2022.
Persons: , Nelson Peltz, wouldn't, Hugh Johnston, Jim Cramer's, Jim Cramer, Jim, Presley Ann Organizations: Club, Revenue, LSEG, Disney, Parks, ESPN, Comcast, Netflix, Warner Bros Discovery, Paramount Global, CNBC, seasonality, Entertainment, Hulu, Hulu Live, Sports ESPN, College Football, National Football League, Walt Disney World, Disney Cruise, Disneyland, Hong Kong, Getty Locations: Hulu, India, Florida, California, Hong, Los Angeles
Reckless government spending enabled by the Federal Reserve is hurting average Americans and endangering President Joe Biden's re-election chances, billionaire investor Stanley Druckenmiller said Tuesday. Everybody seems to get it but Yellen, who just keeps spending and spending," Druckenmiller said. Druckenmiller's comments come with the Fed still trying to bring inflation down, as policymakers have dashed investors' hopes for aggressive interest rate cuts this year. Getting markets enthused about rate reductions was a mistake because it set financial conditions "on fire," he said. Inflation was coming down, financial conditions were tightening," he said.
Persons: Joe Biden's, Stanley Druckenmiller, Janet Yellen, Jerome Powell, Druckenmiller Organizations: Federal Reserve, Duquesne Family Office, Fed
New York CNN —A group of 13 conservative US federal judges are vowing to not hire Columbia University law students or undergraduates because of how the school has handled pro-Palestinian demonstrations on its campus in recent weeks. “As judges who hire law clerks every year to serve in the federal judiciary, we have lost confidence in Columbia as an institution of higher education. CNN has reached out to Columbia University for comment. They typically hire law school graduates for clerkships that can eventually lead to high-paying and prestigious jobs. If not, employers are forced to assume the risk that anyone they hire from Columbia may be one of these disruptive and hateful students,” the judges wrote.
Persons: Minouche Shafik, Gillian Lester, Judge James C, Elizabeth L, Matthew H, Solomson, Donald Trump, Matthew Kacsmaryk Organizations: New, New York CNN, Columbia, . ” Columbia University, New York Police Department, Police, CNN, U.S ., Appeals, Fifth Circuit, Eleventh Circuit, U.S . Court, Federal, Columbia University, Northern District of, Hamilton Hall Locations: New York, Manhattan, Gaza, Columbia, Texas, Northern District, Northern District of Texas, Amarillo
The upside of higher interest rates
  + stars: | 2024-05-03 | by ( Sharon Epperson | ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe upside of higher interest ratesThe Federal Reserve is keeping rates at a 23-year high. While that's tough for borrowers, it's a benefit for savers. CNBC's Senior Personal Finance Correspondent Sharon Epperson explains.
Persons: Sharon Epperson Organizations: Federal, Finance
Immigrant workers are helping boost the U.S. labor market
  + stars: | 2024-05-03 | by ( Kate Rogers | ) www.cnbc.com   time to read: +1 min
The strong jobs market has been bolstered post-pandemic by strength in the immigrant workforce in America. And as Americans age out of the labor force and birth rates remain low, economists and the Federal Reserve are touting the importance of immigrant workers for overall future economic growth. Immigrant workers made up 18.6% of the workforce last year, a new record, according to Bureau of Labor Statistics data. Despite the U.S. adding fewer-than-expected jobs in April, the labor force participation rate for foreign-born workers ticked up slightly, to 66%. "We don't have enough workers participating in the labor force and our birth rate has dropped down 2% last year from 2022 to 2023.
Persons: Jennie Murray, Phillip Swagel, Swagel Organizations: Federal, of Labor Statistics, Workers, National Immigration, Congressional Locations: America
Oil steadies, heads for weekly drop on U.S. economy worries
  + stars: | 2024-05-03 | by ( ) www.cnbc.com   time to read: +1 min
Oil prices edged up in early trade on Friday on the prospect of OPEC+ continuing output cuts, but the crude benchmarks were headed for weekly losses on U.S. economic uncertainty and limited crude supply disruptions caused by the Israel-Hamas war. Brent headed for a 6.3% weekly decline, while and WTI moved towards a loss of 5.6% on the week. The market is now looking towards U.S. economic data and indicators of future crude supply from the world's top producer. Higher rates typically weigh on the economy and that can reduce oil demand. Also on Friday, energy services firm Baker Hughes is due to release its weekly count of oil and gas rigs, an indicator of future crude output.
Persons: Brent, WTI, Baker Hughes Organizations: Brent, . West Texas, Organization of, Petroleum, U.S . Bureau of Labor Statistics, Federal Reserve Locations: Israel, U.S, Russia
Enter the closed-end fund, a relative of the traditional, open-end mutual fund. Gundlach highlighted closed-end funds on CNBC's " Closing Bell " Wednesday afternoon, noting that it's "a pretty good environment for moderate risk assets." "For retail investors, closed-end funds have gone back to trading at discounts broadly, and with some leverage involved there, there's double-digit yields available without taking a ton of credit risk," he said. Searching for discounts Drivers of these closed-end fund discounts, particularly those that hold bonds, include sharp spikes in yields. The Abrdn National Municipal Income Fund (VFL) , for instance, is trading at a 15% discount to its net asset value, according to Nuveen's CEF Connect, a database of closed-end funds.
Persons: Jeffrey Gundlach, Gundlach, Eaton Vance Organizations: Income Fund, Income Trust, Fidelity Locations: Eaton Vance California
But St. John’s is hardly the only institution of higher learning to either merge campuses or close its doors as a result of low enrollment or economic challenges over the past few years. More than 91 colleges closed between 2016 and 2023, including 15 in 2023 alone; 44 percent of the schools were, like St. John’s, religiously affiliated. The Staten Island campus, created in 1971, has traditionally been home to students mainly from Brooklyn and Staten Island, the majority of whom, being commuters, appreciated being able to get a college education in the vicinity of their local communities. The campus’s culture reflects that of Staten Island, whose residents often value planting one’s roots in the neighborhood and maintaining proximity to family over making frequent moves in the name of upward mobility. “Small colleges,” Mr. Franek said, “have been outstanding at offering their students an excellent liberal arts education.
Persons: John’s, Vincent de Paul, — socioeconomically, Rob Franek, , Mr, Franek, Organizations: Vincentian Fathers, Queens, The Princeton, Locations: York, St, Staten, Brooklyn, Staten Island, U.S
U.S. bank Citi refreshed its list of "highest conviction ideas" for Europe and recommended a specific trading strategy that investors can adopt right now. "The focus is on bottom-up ideas," Citi's analysts wrote in an Apr. The list also "highlights liquid names in which investors can build positions," the Citi analysts added. Citi's focus list delivered returns of 3.4% over the last 12 months and 5.4% in the past three months. Citi has a target price of £200 on the LSE-listed stock, giving it 34% potential upside.
Persons: , Leonardo Citi, Leonardo, — CNBC's Michael Bloom Organizations: Citi, U.K . Ministry of Defence, Revenue, London Stock Exchange, New York Stock Exchange, LSE Locations: Europe, U.S, Ireland, Australia, Italy
JPMorgan analyst Vivek Juneja upgraded the regional bank stock to an overweight rating from neutral, simultaneously lifting his price target to $39.50 from $37.50. — Lisa Kailai Han 6:27 a.m.: Deutsche Bank downgrades Starbucks after disappointing quarterly earnings Starbucks could feel some near-term pressure, according to Deutsche Bank. Analyst C. Stephen Tusa also raised his price target to $111 from $110, implying that shares of 3M could rally 15% from here. 3M stock has added nearly 6% so far in 2024, but the stock is still trading at an attractive valuation given the company's characteristics, Tusa said. Amongst the group, JPMorgan analyst Doug Anmuth has the highest price target of $240, which implies that Amazon stock could rally another 37% from here.
Persons: Vivek Juneja, Juneja, — Lisa Kailai Han, Samik Chatterjee, Chatterjee, Lauren Silberman, Silberman, Lisa Kailai Han, Stephen Tusa, Tusa, 3M's, Morgan Stanley, Doug Anmuth, Anmuth, — Lisa Kailai Han — CNBC's Michael Bloom Organizations: CNBC, JPMorgan, Starbucks, Deutsche Bank, Fifth, Bancorp, Logitech, 3M, Barclays, Bank of America, Amazon, Services, Wall Street, Locations: China
"Shark Tank" star Kevin O'Leary sees zero rate cuts this year, he told Fox Business. Cuts are unlikely as the Fed can't seem to reach its mandate of 2% inflation anytime soon, he said. AdvertisementInvestors need to stifle any hope for interest rate cuts this year, as the Federal Reserve will not be able to reach its inflation mandate anytime soon, Kevin O'Leary said. But there'll be no rate cuts this year," O'Leary said Tuesday. For its part, the Fed has projected three rate cuts in 2024, though officials have repeatedly asserted that this depends on future inflation and economic data.
Persons: Kevin O'Leary, , there'll, " O'Leary, I'm, O'Leary Organizations: Fox Business, Service, Federal Reserve, Fox Business Network, Fed
More than two years after the Federal Reserve started lifting interest rates to restrain growth and weigh on inflation, businesses continue to hire, consumers continue to spend and policymakers are questioning why their increases haven’t had a more aggressive bite. The answer probably lies in part in a simple reality: High interest rates are not really pinching Americans who own assets like houses and stocks as much as many economists might have expected. Some people are feeling the squeeze of Fed policy. Credit card rates have skyrocketed, and rising delinquencies on auto loans suggest that people with lower incomes are struggling under their weight. Their house values are mostly holding up in spite of higher rates, stock indexes are hovering near record highs, and they can make meaningful interest on their savings for the first time in decades.
Persons: haven’t Organizations: Federal Reserve
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Jim Cramer has said repeatedly the Fed does not need to cut anytime soon. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.
Persons: Jim Cramer, Jerome Powell, Jim, Eli Lilly, Eaton, Lilly, We're, McDonald, , Jeff Marks, Jim Cramer's Organizations: CNBC, Dow Jones, Nasdaq, Federal, Fed, GE Healthcare, Constellation Brands, Molson Coors, TAP, Modelo, Corona, Web Services, Microsoft, Starbucks, Jim Cramer's Charitable Locations: China, Will
CNN —Dramatic campus protests are injecting an inflammatory new element into an election year that is already threatening to stretch national unity to a breaking point. Republicans smell an openingGOP Rep. Elise Stefanik is a driver of the deepening political backlash against campus protests. Republicans are also using the drama of student protests as a shield and to downplay their presumptive nominee’s own extremism. The unrest is so far not comparable since there’s no student mob trying to destroy American democracy. And they are not yet in the same league as the civil rights and Vietnam War protests in the 1960s and 1970s.
Persons: they’ve, Joe Biden, Biden, Israel –, Donald Trump, Trump, , , Fox, “ Biden, appeasing, who’ve, Will, Elise Stefanik, Stefanik, Mike Johnson’s, skewer Biden, ” Stefanik, Johnson, aren’t, ” Johnson, Ronald Reagan, Berkeley ”, Richard Nixon, antisemites, Trump’s, ” Trump, George Floyd, David Farber, Paula Newton, John Kennedy, Barack Obama Organizations: CNN, New York Police Department, Columbia University, , University of California, UCLA, Brown University, Israel, The New York Republican, Harvard, Ivy League, Columbia, National Guard, GOP, Republicans, California, Berkeley, Democratic Party, crackdowns, Capitol, University of Kansas, CNN International, Harvard University Locations: Gaza, America, Texas, Columbia’s, Palestine, Los Angeles, Israel, Rafah, United States, Vietnam, Charlottesville , Virginia
Recent commentary from policymakers and on Wall Street indicates there's not much else the committee can do at this point. But they're still hopeful that they will be in a position to cut rates later." Markets actually have held up pretty well since Powell made those comments on April 16, though stocks sold off Tuesday ahead of the meeting. Some on Wall Street, though, are still hopeful that inflation data will show progress and allow the central bank to cut. The Wall Street bank's economists are preparing for the possibility that the Fed could be on hold for longer, particularly if inflation continues to surprise to the upside.
Persons: Jerome Powell, Kent Nishimura, Guy LeBas, Janney Montgomery Scott, they're, Powell, We've, there's, specter, LeBas, There's, Goldman Sachs, David Mericle, , Donald Trump, Goldman, Mericle Organizations: Banking, Housing, Urban Affairs Committee, Getty, Federal Reserve, Federal, Market Committee, Fed, Dow Jones, Department, Labor Department, Republican
Sales, earnings, segment profit margin, and organic growth all came in ahead of expectations, despite some minor misses in certain operating segments. In addition to the strong headline results, Electrical Americas, its biggest division, realized another record for sales, segment profit, and segment margins — driven partly by data center demand for AI computing power. Electrical Americas achieved yet another record for sales, segment profit, and segment margins with management noting strength in the data center market. Management expects a segment margin of 22.4% to 22.8%, ahead of the 22.4% midpoint estimate. Electrical Americas achieved yet another record for sales, segment profit, and segment margins with management noting strength in the data center market.
Persons: Eaton, Parker, Craig Arnold, Arnold, Jim Cramer's, Jim Cramer, Jim Organizations: Revenue, LSEG, Hannifin, DuPont, Honeywell, Electrical, Management, Aerospace, CNBC, Eaton Corporation, NYSE, NYSE Eaton Locations: North America, Electrical Americas, U.S, Eaton, Americas
In Starbucks' international segment, comparable store sales fell 6% and missed estimates of 0.5% growth. The street was looking for flat comparable sales in China, according to FactSet. China comparable sales are expected to decline by a single-digit percentage versus expectations of low single-digit growth in the second quarter through the fourth quarter. Global net new store growth was tweaked down from 6% to 7%. That's due to slower China store openings, which was revised to 12% growth from 13%.
Persons: Laxman Narasimhan, Dunkin, Jim Cramer's, Jim Cramer, Jim, Spencer Platt Organizations: Revenue, Starbucks, Bros, McDonalds, Wall Street, Global, CNBC, Getty Locations: China, United States, North America, Latin America, Asia, Japan, Manhattan , New York City
Editor’s Note: David M. Perry is a journalist, historian and senior academic adviser in the history department of the University of Minnesota. CNN —In recent days, protests by college students against Israel’s actions in the ongoing war in Gaza have popped up across the country. Concerned faculty at the University of Texas-Austin called a strike to protest police actions against peaceful protestors. But then, in the year 1200 CE, a group of students in Paris got swindled by a shopkeeper. They are a reminder that institutions of higher learning are a union between teachers and students dedicated to the pursuit of knowledge.
Persons: David M, Perry, Matthew Gabriele, , , Noëlle McAfee, Caroline Fohlin, Elijah Nouvelage, King Philip II Augustus of France, Paris didn’t, doesn’t, Ibn Rushd Organizations: University of Minnesota, of Religion, Virginia Tech, CNN, University of Texas, CUNY, Emory University, Notre Dame, universitas, Twitter Locations: Europe, Gaza, Emory, Austin, Paris,
The family offices covered by the survey had 26% of their assets invested in publicly traded stocks. The study surveyed 190 single family offices around the world, with an average of $1.4 billion in assets. In the U.S., only 49% of family offices have a long-term target return for their portfolio. Still, family offices use various benchmarks for their investment portfolios, with more than three-quarters of those surveyed using some benchmark to evaluate performance. Increasingly, family offices are looking to outsource more functions to reduce costs, especially among smaller family offices of under $500 million.
Persons: William Sinclair, Sinclair, cybersecurity, Robert Frank Organizations: JPMorgan Private Bank Global, Family, JPMorgan Private Bank, JPMorgan Locations: U.S
India is trying to modernize its military of 1.5 million people with lessons from Ukraine. AdvertisementAs India boosts defense spending amid tensions with China and Pakistan, it is closely studying the Ukraine conflict for clues to the future of warfare and how to thwart its neighbors. Some lessons that Indian experts have already drawn: India needs lots of artillery, drones and cyberwarfare capabilities. Drones have become the stars and workhorses of the air war, with both sides deploying — and losing — drones in the hundreds of thousands. AdvertisementThere are lessons here for Indian airpower, according to Arjun Subramaniam, a retired Indian Air Force air vice marshal who helped write the ORF report.
Persons: , Amrita Jash, Wolfgang Schwan, Arjun Subramaniam, Subramaniam, Cyberwarfare, Shimona Mohan, Mohan, Michael Peck Organizations: NATO, Service, Artillery, Indian Army, Manipal Academy of Higher Education, Observer Research Foundation, Getty, Russian, Indian Air Force, Air Force, Defense, Foreign Policy, Rutgers Univ, Twitter, LinkedIn Locations: India, Ukraine, Russia, China, Pakistan, Eastern, Western, Indian, Siversk, Donetsk Oblast, Anadolu, cyberwarfare, Forbes
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