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CNBC's Jim Cramer on Thursday told investors not to be wary of the Big Tech megacap stocks, saying their high valuation is well-earned. But Cramer refuted such claims, saying all of these tech names have hefty revenue streams to back up their valuations. He pointed out the proven probability of the megacaps, including three that reported quarterly earnings Thursday after the bell: Apple, Meta and Amazon. Cramer said the three generated upward of $300 billion in revenue and nearly $59 billion in net income combined. "You may think that these megacap stocks are somehow wrongly valued versus the rest of the market," Cramer said.
Persons: CNBC's Jim Cramer, doesn't, Cramer Organizations: Big Tech, Microsoft, Nvidia, Meta
download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. In today's big story, we're looking at why this is such a big week for the stock market . The big storyA week to rememberThree trends in the stock market are bound to vault equities higher in 2024, Wall Street strategists say. Getty ImagesWe're less than a month into 2024, but this week could determine the market's trajectory for the rest of the year. Tim Cook AppleThe information overload comes amid an uncertain time for Big Tech and the broader stock market.
Persons: , Netflix's, it's, Matthew Fox, Jerome Powell's, Tim Cook, Tesla, haven't, we'll, Fundstrat's Tom Lee, Read, Jamie Dimon, Larry Downing, Jennifer Piepszak, Marianne Lake, Troy Rohrbaugh, Jeffrey Gundlach, Buckle, Mohamed El, isn't, Erian, Lyra, Maven, Tyler Le, Liquidators, Max Organizations: Service, Business, Wall, Big Tech, Microsoft, Fed, Apple, Nvidia, Meta, Google, optimist, JPMorgan, DoubleLine, Prime, Comcast, Warner Bros, Lyra Health, Hong, Alaska Airlines Locations: India, Japan, Hong Kong, China, Alaska
After reviewing Tesla's earnings, CNBC's Jim Cramer on Thursday criticized CEO Elon Musk and told investors why he thinks the electric vehicle giant has lost its spot among the "Magnificent Seven" tech stocks. "As someone who was among the first to vocalize the Magnificent Seven rubric, I officially acknowledge now that there are only six left," he said. Tesla's Wednesday report missed Wall Street's expectations and warned of a slowdown in 2024, sending its stock plummeting, down 12% by Thursday's close. Cramer also criticized Tesla's leadership, saying top management of great companies show they're committed to the success of their enterprise. "Oh, thank heavens, you don't have a Magnificent Seven CEO who might go bonkers and, more important, what if he doesn't get his 25% voting power?"
Persons: CNBC's Jim Cramer, Elon Musk, vocalize, Tesla's, Thursday's, Cramer, Tesla, — Apple, Musk, they're, doesn't Organizations: Nvidia, Microsoft
CNBC's Jim Cramer on Wednesday said the market hasn't been playing by usual Wall Street rules over the past few years, telling investors to find anomalies and use them to their advantage. "Nothing we've ever learned about the market has played out like it was supposed to for the last two years," he said. When the market no longer reflects the playbook, you've got to throw out the playbook and write a new one." The company is facing heavy scrutiny after a piece of its 737 Max 9 aircraft blew out during an Alaska Airlines flight. Cramer said investors may expect sell-offs in a narrow market, but this hasn't been the case.
Persons: CNBC's Jim Cramer, you've, Cramer, they'd Organizations: Federal, Toll, Boeing, Alaska Airlines, United Airlines, Federal Aviation Administration, Microsoft, Meta, Nvidia, Tesla Locations: Alaska
But geopolitical tensions are growing and Wall Street appears to be underestimating their potential impact on the global economy and markets. The United States and China are squabbling about trade, particularly high-powered AI chips that both believe carry consequences for national security. Less trade could mean lower supplies to meet demand — and that could be bad news for inflation around the world. Bank of America also gave geopolitical risk a top spot on its list of surprises that could affect markets in 2024. It’s the worst start to a year for Chinese stocks since 2016, when investors were ditching their holdings following a market crash in 2015.
Persons: , , Jamie Dimon, dory, he’s, Anna Cooban, Laura He, Hong, Premier Li Qiang, Ken Cheung, Catherine Thorbecke Organizations: New, New York CNN, Dow Jones, Federal Reserve, BlackRock, Shipping, CNBC, Economic, Bank of America, Center for Strategic, International Studies, Apple, Google, Microsoft, Meta, Nvidia, , Shenzhen Component, Premier, Mizuho Bank, MIT’s Computer, Artificial Intelligence Locations: New York, Russia, Ukraine, United States, China, Taiwan, Suez, Iranian, Pakistan, Iran, Europe, Asia, Drewry, Yemen, Davos, Switzerland, Wall, Shanghai, Shenzhen
They’ll be livestreamed on Oscars.com, Oscars.org and the academy’s social media platforms, and carried live on ABC’s “Good Morning America.”Christopher Nolan’s three-hour opus “Oppenheimer” comes in the favorite for best picture, best director and a host of other awards. Though Nolan is regarded as the big-budget auteur of his era, he's never won an Academy Award, nor have any of his films won best picture. Also in the mix: Carey Mulligan ("Maestro"), Sandra Hüller ("Anatomy of a Fall"), Margot Robbie ("Barbie") and Annette Bening ("Nyad"). There, Downey Jr. and Gosling are likely to face off, while other nominees might pull from Robert De Niro ("Killers of the Flower Moon"), Willem Dafoe ("Poor Things"), Mark Ruffalo ("Poor Things") and Charles Melton ("May December"). Two releases from streaming companies — Apple’s “Killers of the Flower Moon” and Netflix’s “Maestro” — are in the best-picture mix.
Persons: — It’s Oscar, they’re, Samuel, Zazie Beetz, Jack Quaid, They’ll, ” Christopher Nolan’s, Oppenheimer ”, Cillian Murphy, Robert Downey Jr, Emily Blunt, Nolan, he's, “ Oppenheimer, “ Barbie, Greta Gerwig’s, Ryan Gosling, Margot Robbie, “ I’m, Ken, , Gerwig, Noah Baumbach, ” “ Barbie, ” “ Maestro, Murphy, Paul Giamatti, Jeffrey Wright, Bradley Cooper, Maestro ”, Leonardo DiCaprio, Colman Domingo, “ Rustin ”, Andrew Scott, Lily Gladstone, Martin Scorsese’s, Emma Stone, Carey Mulligan, Maestro, Sandra Hüller, Annette Bening, Joy Randolph, Holdovers ”, Blunt, Danielle Brooks, Jodie Foster, Julianne Moore, Penélope Cruz, Downey Jr, Gosling, Robert De Niro, Willem Dafoe, Mark Ruffalo, Charles Melton, Netflix’s, ” —, “ Barbie ”, Jimmy Kimmel Organizations: Academy, Samuel Goldwyn Theater, America, ABC Locations: Beverly Hills , California
LONDON (AP) — Apple has promised to open up its tap-and-go mobile payment system to rivals, the European Union said Friday, as the U.S. tech company seeks to resolve an antitrust case and avoid a fine that potentially could be worth billions. Apple proposed letting third-party mobile wallet and payment service providers access the contactless payment function on its iOS operating system, the EU said. The European Commission, the bloc's executive arm and top antitrust enforcer, accused Apple in 2022 of abusing its dominant position by limiting access to its mobile payment technology. Brussels has been using antitrust cases and new digital laws to rein in the power of Apple and other tech giants and protect consumers. The commission alleged that Apple was restricting competition by blocking developers of rival mobile wallet apps from accessing the near-field communication, or NFC, technology used by its Apple Pay system.
Persons: Apple Organizations: European Union, U.S ., Apple, European Commission Locations: U.S, EU, Brussels, Iceland, Norway, Liechtenstein
Discover Financial Services — The financial services stock dropped more than 7% after posting mixed fourth-quarter results. Hertz — The automotive rental company's stock climbed about 6% following an upgrade to overweight from Morgan Stanley earlier on Thursday. Kinder Morgan — Shares of the energy infrastructure company fell less than 1% after Kinder Morgan's fourth-quarter revenue came in lower than expected. Fastenal — The industrial supplies company added 4% after posting fourth-quarter earnings that exceeded analyst expectations. Humana — The health insurance company lost more than 14% on Thursday after guiding for full-year 2023 adjusted earnings of $26.09 per share.
Persons: Hertz, Morgan Stanley, Adam Jonas, Hertz's, BofA, Ranjan Sharma, Kinder Morgan —, Kinder Morgan's, Kinder, Fastenal, Chris Caso, — CNBC's Brian Evans, Michelle Fox, Fred Imbert, Jesse Pound, Pia Singh, Samantha Subin Organizations: Discover Financial, Apple, Bank of America, Spirit Airlines, JetBlue, Citi, Spirit, Alaska Air Group —, Boeing, Alaska Airlines, Federal Aviation Administration, JPMorgan, Wolfe Research, Humana, Alcoa, Revenue Locations: Singapore
In today's big story, we're looking at the ultimatum Elon Musk gave Tesla's board amid a critical time for the company. The big storyElon's ultimatumREUTERS/Steve NesiusUltimatums rarely work in relationships, but what about between CEOs and the massive companies they run? Elon Musk is about to find out. Musk, who has roughly a 13% stake in the EV maker, said if his request isn't met, he'll "prefer to build products outside of Tesla." Meanwhile, Ross Gerber, a longtime Tesla bull, said it's "absurd" to think Musk doesn't already have control over Tesla and described his request as "blackmailing the Tesla shareholders."
Persons: , Antony Blinken, Elon Musk, Steve Nesius Ultimatums, Elon, isn't, didn't, Wedbush's Dan Ives, Musk's, Ross Gerber, Tesla, Dow Jones, George Glover, That's, cowering, Caspar Benson, Jamie Dimon, dory, Trump, Ray Dalio, Biden, Evan Spiegel's, Hokyoung Kim, They've, Kristen Stewart, Christopher Nolan, Maite Alberdi, Celine Song, Eugene Lee Yang, Dave Bautista, Kevin Costner, Estelle, AA Milne, Jay Chou, Jennifer Ortakales Dawkins Organizations: Service, Boeing, Business, Tesla, EV, Apple, Microsoft, Nvidia, Getty, Intellia Therapeutics, Shoals Technologies, JPMorgan, Biden, Bridgewater Associates, Trump, Alliance, Helicopter, BI, Sundance, Northern Trust Locations: Switzerland, Tesla, Northern
Read previewIf you were scanning headlines yesterday you might have seen something about the Supreme Court forcing Apple to open up its powerful App Store. What yesterday's court decision — and, crucially Apple's response to the decision — means is that Apple's control over its powerful and very profitable App Store remains 100% intact. In 2020, Epic argued that Apple's control of its App Store — and, crucially, the way developers like Epic had to use Apple's App Store to sell "in-app" items like power-ups and other digital goods — was a monopoly. Apple's App Store prints money. In 2021, a US judge announced that games represent 70% of Apple's App Store topline.
Persons: , Apple, Tim Sweeney, Fortnite — Organizations: Service, Apple, Business, Epic Games, Epic, Big Tech, Meta, Google, European Union, Spotify Locations: EU
If you rode your Big Tech winners into the new year, now might be the time to consider whittling down a few of those overweight positions. "It's the only way to consistently buy low and sell high, but no one ever wants to do it," duQuesnay said. He noted that the iShares Russell 2000 ETF (IWM) is a good way to get broad exposure to the space. The Federal Reserve's rate-hiking campaign made yields on an array of assets, ranging from Treasurys to money market funds, attractive. Ethridge, who bought six- and 12-month brokered certificates of deposit for clients in 2023, is going for longer-dated instruments these days.
Persons: rebalancing, Blair duQuesnay, duQuesnay, Morningstar, Amy Arnott, Arnott, it's, Barry Glassman, Russell, didn't, Malcolm Ethridge, Ethridge, Tesla, Glassman Organizations: Big Tech, Microsoft, Nvidia, Tesla, Ritholtz Wealth Management, Wealth Services, Wealth, AMD, Federal, Taxpayers Locations: New Orleans, North Bethesda , Maryland, Rockville , Maryland, rebalance
There are plenty of stocks other than the so-called "Magnificent Seven" that are appealing right now, top money managers told CNBC on Thursday. The mega-cap tech stocks that make up the " Magnificent Seven " — Apple , Alphabet , Meta , Microsoft , Amazon , Nvidia and Tesla — each gained at least 48% last year. They make up about a quarter of the S & P 500's total market share. For one, software stocks such as Salesforce are adjacent to the Magnificent Seven, have done well and have a "very long trajectory," she said. The energy names Simpson owns are Chevron and ConocoPhillips .
Persons: Bryn Talkington, Bob Pisani, Talkington, Kevin Simpson, Simpson Organizations: CNBC, Microsoft, Nvidia, Tesla, Capital Management, Wealth, Broadcom, Cisco, IBM, Diamondback Energy, Chevron, ConocoPhillips
Wall Street will endeavor to keep the November momentum going in the final month of 2023, as investors look for a broadening out of the rally that has been dominated this year by a handful of tech names. It also marked the best monthly performance for the S & P 500 and Nasdaq Composite since July 2022. While the S & P 500 cap-weighted index climbed more than 18% this year, the equal-weighted index is up by just over 4%. They highlight the attractive relative valuation of value stocks compared to growth stocks, as well as the significant underweighting of value names in portfolios by traders. And the question is, is it going to be in 2024, is it going to be 2025 or in 2026?
Persons: Stocks, Hogan, Olivier Sarfati, GenTrust's Sarfati, Carlos Asilis, Asilis, FactSet, nonfarm payrolls, They're, TK, Nonfarm Organizations: Dow Jones, Dow, Nasdaq, Treasury, Riley, Apple, Nvidia, Meta, Microsoft, Tesla, Expedia, Paramount Global, Russell, Glovista Investments, PMI, Services PMI, ADP, Labor, Consumer Credit, Broadcom Locations: U.S, Michigan
CNBC's Jim Cramer on Tuesday reaffirmed his belief in owning the "Magnificent Seven," arguing against bear cases for the mega-cap stocks. "I wish I could get these companies to split their shares in favor of you, the home gamer," Cramer said. However, Cramer called Nvidia a "benign monopolist," with its product reigning supreme in the industry. According to Cramer, investors shouldn't be concerned that Microsoft's stock has soared too quickly, praising its artificial intelligence product and saying, "There are no speeding tickets in this racket." "Despite these rebuttals, I think their success in 2023 made each of these stocks into their own worst enemy," Cramer said.
Persons: CNBC's Jim Cramer, Cramer, didn't, Mark Zuckerberg's, shouldn't, Tesla Organizations: Nvidia, Meta, Microsoft, Tesla, Amazon Web Services, Facebook
These Black Friday AirPods deals include sales on all four models, so no matter your preference, you're saving money. The best Apple AirPods Black Friday deals todayApple AirPods Black Friday FAQsIs Black Friday a good time to buy AirPods? What's the difference between AirPods, AirPods Pro, and AirPods Max? The AirPods (2nd generation) and AirPods (3rd generation) are the standard earbud models. Check out our AirPods (2nd Gen) review and AirPods (3rd Gen) review for more details on each.
Persons: We're, Max, AirPods Max, Apple Organizations: Apple
Check out the companies making headlines in midday trading. Nvidia — Nvidia shares fell 1.9%. Reuters , citing sources, reported that Nvidia notified its China clients that it will delay until next year a new artificial intelligence chip designed to comply with U.S. export restrictions. First Solar , SolarEdge — The solar panel manufacturer declined 3.3% Friday, while SolarEdge fell about 0.8%. Retailers — Shares of major retailers were mixed in trading during Black Friday, with Walmart and Target up less than 1%.
Persons: Fisker, SolarEdge, Apple — Apple, Coinbase, bitcoin, Changpeng Zhao, Binance, , Nordstrom, Alex Harring, Jesse Pound, Yun Li, Sarah Min Organizations: Nvidia, Reuters, European Union, Vista, Colt CZ Group, Apple, Counterpoint Research, Department of Justice, Black, Walmart, Target Locations: China
CNBC's Jim Cramer on Tuesday reacted to Bank of America 's bullish outlook for 2024, agreeing that it's possible S&P 500 could reach 5000 by the end of next year. "Broadly speaking, I actually agree with Savita Subramanian at Bank of America that we could go to 5000 on the S&P," he said. The S&P 500 is seen by most on Wall Street as the best gauge for large-cap U.S. stocks, and it closed on Tuesday at 4,538.19. After a tough few months, the S&P 500 has seen a turnaround, advancing 8.4% for the month, it's largest monthly increase since July 2022. Subramanian wrote the market has moved past its "maximum macro uncertainty," explaining that it has already absorbed significant geopolitical shocks and companies have adapted to higher rates and inflation.
Persons: CNBC's Jim Cramer, Savita Subramanian, Subramanian, Cramer Organizations: Bank of America, Reserve, Nvidia, Microsoft, FTC
Apple Had Better Watch Its Back in China
  + stars: | 2023-11-20 | by ( Jacky Wong | ) www.wsj.com   time to read: 1 min
Xiaomi is making a renewed push in the premium segment. Photo: Cfoto/Zuma PressSignals are finally getting stronger for the global smartphone market. Chinese handset makers like Huawei, which had been locked out of the race by U.S. sanctions, are dialing back in. That adds up to a tricky outlook for Apple in China, its second-largest revenue region after North America. Huawei’s Chinese rival Xiaomi , which reported third-quarter results Monday, is also making a renewed push in the premium segment— Apple ’s bread and butter.
Organizations: Zuma Press Signals, Huawei, Apple Locations: China, North America
Several large investment firms are writing off a recession in the US in 2024 as growth holds up and inflation steadily declines, but T. Rowe Price thinks that optimism may be misplaced. While T. Rowe Price doesn't have an official call on the economy, the brightest minds at the $1.4 trillion Baltimore-based firm urged investors to be cautious at a mid-November conference. However, T. Rowe Price is skeptical that the Fed will end its fight against inflation anytime soon. T. Rowe Price found that through October, those names rose 53.2% compared to a 1.2% year-to-date return for the other 493 companies in the S&P 500. Dom Rizzo, a portfolio manager of global technology equity strategy at T. Rowe Price, agreed that the Magnificent 7's momentum won't stop just because the group is pricey.
Persons: Rowe Price, Goldman Sachs, Goldman, Jan Hatzius, Rowe Price doesn't, We're, Tim Murray, Rowe Price's, Murray, We've, Rowe, Uruci, he's, it's, Tesla, let's, Dom Rizzo, Rizzo, septet, Santa, He's Organizations: Citi, UBS Global Wealth Management, Business, Federal Reserve, Apple, Microsoft, Nvidia, Meta, AMD Locations: Baltimore, Santa Clara
CNN —Did Apple and Jon Stewart part ways over China? The letter also asked Apple to make a public commitment that content potentially viewed as critical of the Chinese Communist Party would be welcome on the company’s services. “If these reports are accurate, it potentially speaks to broader concerns about indirect Chinese Communist Party (CCP) influence over the creative expression of American artists and companies on CCP-related topics,” the committee said in the letter. Representatives for Apple and Stewart did not immediately respond to CNN requests for comment. China represents nearly a fifth of Apple’s sales and is by far the company’s fastest-growing region.
Persons: Jon Stewart, Tim Cook, Jon Stewart ”, , Mike Gallagher, Raja Krishnamoorthi, Illinois —, Apple, Stewart Organizations: CNN, Chinese Communist Party, Wednesday, Apple, Wisconsin Republican, Communist Party, CCP, Xi Locations: China, Wisconsin, Illinois, People’s Republic of China
CUPERTINO, Calif. (AP) — Apple has agreed to pay $25 million to settle allegations that it engaged in a pattern of discriminatory hiring practices when filling some of its jobs during 2018 and 2019. Federal regulators said an inquiry that began in 2019 determined that Apple's hiring practices discriminated against U.S. candidates for jobs that were awarded to some immigrant workers seeking to be granted permanent resident status in the country. Apple vehemently denied any wrongdoing in the formal seven-page settlement defended its hiring record in a statement to The Associated Press. Most of the settlement amount — $18.25 million — will be funneled into a fund to compensate victims of Apple's alleged discrimination. The rest of the money covers the fine that Apple is paying for its hiring practices during the timeframe covered in the settlement.
Persons: Apple, “ Apple, Apple's Organizations: Department of Justice, U.S, Apple, Associated Press, DOJ Locations: CUPERTINO, Calif, United States, Cupertino , California
LONDON (AP) — Apple might end up on the hook after all for billions of euros in back taxes to Ireland in the latest twist in a longrunning European Union dispute, following a legal opinion Thursday from an adviser to the bloc's top court. The ECJ's opinions aren’t legally binding, but are often followed by the court. The Court of Justice is expected to come up with its legally binding decision next year. “We thank the court for its time and ongoing consideration in this case," Apple said in a prepared statement. "The General Court’s ruling was very clear that Apple received no selective advantage and no State aid, and we believe that should be upheld.”The European Commission declined to comment.
Persons: Giovanni Pitruzzella, Tim Cook, Donald Trump, Margrethe Vestager, , Pitruzzella, , Apple, Court’s Organizations: European Court of Justice, Apple, , European Commission, Court of Justice, European Locations: Ireland, European, U.S
We always recommend an investor's first $10,000 should go to an S & P 500 index fund. So one option for putting all your money to work without making any one stock position too big is to keep adding to your index fund. Or maybe you own five names at 8% each, 15% in cash, and the remaining 45% in an index fund. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB.
Persons: Jim Cramer, Scott L, Jim, Josh Edelson Organizations: Apple, Nvidia, Microsoft, CNBC, Apple's Worldwide, Afp, Getty Locations: Cupertino , California
The next Apple Watch could help detect sleep apnea by tracking your breathing, Bloomberg reports. The feature, set to come out in 2024, will detect a person's breathing while they sleep and help determine if they exhibit signs of sleep apnea, according to the report. Right now, the Apple Watch does have some health-tracking abilities and can monitor things like heart rate and blood oxygen levels. AdvertisementAdvertisementThe Apple Watch isn't the only tool Apple has been working to equip with health-conscious technology. Apple has been coming out with a new version of the Apple Watch every year since its 2015 debut.
Persons: Apple, Organizations: Apple, Bloomberg, Vision, Service, Apple Watch
The S&P 500 is up 7.6% year-to-date. Only about 40% of analyst ratings changes for S&P 500 companies are upgrades. While the S&P 500 is up over 7% this year, Edwards cited it as another data point covering up the economy's true health. Their outsized contribution to the index's performance is evidenced by the returns of the S&P 500 equal-weighted index, Edwards said, which is down by 5% this year. In the equal-weighted index, each individual S&P 500 constituent's performance impacts the overall index's performance the same.
Persons: Albert Edwards, " Edwards, Edwards, Freddie Kruger, , Russell Organizations: Generale Chief Global, Societe Generale They're, Societe Generale, National Federation for Independent, Institute, Supply, Apple, Microsoft, Nvidia, Tesla, RBC Capital Markets
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