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☆ Elon Musk's quest for an irresistible price could spell trouble for Tesla and its stock
▼ + stars: | 2023-05-21 | by ( Brian Evans | ) www.cnbc.com time to read: +11 min

Its goal has been to coax consumers to make the leap to its brand with the lower prices. Finding an 'irresistible' price Tesla's price cuts are an effort to take advantage of that growing market. "We have written extensively on the drag EVs have on margins for legacy [original equipment manufacturers] and the impact of EV price deflation. She added that the price cuts are an effort for Tesla to retain market dominance and stave off competition from big competitors like Ford. Longer term, Tesla's price fluctuations could do more harm than good if they end up turning consumers off.

☆ Morning Bid: Are we there yet? Market holds breath for debt ceiling deal
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +3 min

A look at the day ahead in European and global markets from Ankur BanerjeeNervousness in the market over the looming U.S. debt ceiling deadline prevailed through the Asian hours and will remain the main focus for investors as Europe wakes up. McCarthy, the speaker of the House of Representatives, told reporters the two sides remained far apart on an agreement. But he said, "It is possible to get a deal by the end of the week. European markets are set for a lower open, with traders waiting for April inflation data for the eurozone. Japan's economy emerged from recession and grew faster than expected in the first quarter as a post-pandemic consumption rebound offset global headwind.

☆ Discount retail operator TJX shows it can deliver profits in a slowing economy
▼ + stars: | 2023-05-17 | by ( Zev Fima | ) www.cnbc.com time to read: +6 min

Of course, as management noted Wednesday, they were also able to put the right items in the right stores at the right time. The operating environment undoubtedly remains uncertain for the retail industry, with consumers increasingly cost conscious amid a slowing economy. Quarterly results Fiscal first-quarter SSS rose 3% year-over-year, matching the high end of the 2% to 3% guidance range management provided the prior quarter. That was driven by a 5% same-store-sales increase at Marmaxx, a 1% increase at TJX Canada and 4% advance at TJX International. On a constant currency basis, sales at TJX Canada were up 3% year-over-year, while sales at TJX International — which includes operations in Europe and Australia — were up 5% annually.

☆ Investors have pulled $8 billion from this pocket of the stock market in just 2 months on recessions worries and debt ceiling fears
▼ + stars: | 2023-05-17 | by ( Carla Mozée | ) www.businessinsider.com time to read: +4 min

Small-cap stocks have been hurt by $8 billion in outflows from ETFs focused on that segment, says Jefferies. That started in March when Silicon Valley Bank and Signature Bank were seized, spooking investors. "Banks are a big part of small caps and are headwinds for the size segment," Jefferies strategist Steven DeSanctis wrote in a Wednesday research note. Meanwhile, small-cap stocks, which make up just over 4% of the equity market, tend to perform worse than large-caps when the economy is veering into a recession. Meanwhile, the current stalemate between Republicans and Democrats on the debt ceiling doesn't bode well for small-cap stocks, which slid by 25% during 2011 debt standoff.

☆ A bright spot in the economy is at risk as 30 million Americans face student loan payments for the first time since the pandemic
▼ + stars: | 2023-05-17 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

More than 43 million Americans together owe $1.6 trillion in student loans. That additional load could weigh on consumer spending, and eventually increase delinquencies on other payments like credit cards and personal loans, strategists said. "We view the resumption of student loan debt payments as an incremental headwind for borrowers and consumer finance companies," BofA said. This, in other words, means the odds of the hotly-anticipated recession are about to go up as consumers divert cash back to student loan payments. Do you have student loans?

☆ Home Depot is facing a headwind from low home sales, says Bleakley's Peter Boockvar
▼ + stars: | 2023-05-16 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHome Depot is facing a headwind from low home sales, says Bleakley's Peter BoockvarPeter Boockvar, Bleakley Financial Group CIO, joins 'Power Lunch' to discuss Home Depot's weak consumer forecast and what it means for the economy.

☆ Here's what to expect when Club apparel retailers TJX and Foot Locker report this week
▼ + stars: | 2023-05-16 | by ( Paulina Likos | ) www.cnbc.com time to read: +7 min

Apparel retailers TJX Companies (TJX) and Foot Locker (FL) are set to deliver quarterly results this week, as consumers continue to be squeezed by a slowing economy and still-persistent inflation. Sneaker retailer Foot Locker reports Friday before the opening bell, with Refinitiv estimates showing revenue should have fallen by 8.3 % annually, to $1.90 billion, with EPS falling 49 % to, 81 cents. Foot Locker is going through a transitionary period as it reinvents itself, so our expectations are low for the first quarter. "Don't expect anything from Foot Locker," Jim Cramer said Monday. Foot Locker Inc. signage is displayed in the window of a store in New York, U.S. Michael Nagle | Bloomberg | Getty Images

☆ The stunning strength of the US consumer is at risk as 43 million borrowers are set to resume student loan payments
▼ + stars: | 2023-05-16 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

The strength of the US consumer could weaken later this year when student loan payments are restarted, according to Bank of America. Student loan repayments are expected to restart in September or October of this year. However, this strength could weaken considerably later this year when student loan payments are restarted, according to a Tuesday note from Bank of America. But Bank of America said with student loan payments set to resume in September or October of this year, approximately 30 million Americans will pay $200 to $400 per month. "We view the resumption of student loan debt payments as an incremental headwind for borrowers and consumer finance companies.

☆ NY Fed finds big slowdown in new mortgage creation in first quarter
▼ + stars: | 2023-05-15 | by ( Michael S. Derby | ) www.reuters.com time to read: +2 min

NEW YORK, May 15 (Reuters) - Amid a modest gain in overall household borrowing levels during the first quarter, the level of those taking on new housing-related debt dropped sharply, the New York Fed said Monday in a report. New York Fed researchers view overall debt levels as relatively healthy, with some pockets of nascent concern. The bite of the higher interest rate environment the Fed has been putting in place over the last year snagged the housing market. The bank said new mortgage debt created during the first quarter fell to the lowest level since 2014 at $324 billion, while overall mortgage debt for the quarter stood at $12.04 trillion. Reporting by Michael S. Derby; Editing by Chizu NomiyamaOur Standards: The Thomson Reuters Trust Principles.

Loop Capital sees "a much brighter revenue picture" ahead for Meta . The firm upgraded Meta shares to buy from hold in a Monday note. It said that, while expense rationalization was likely more of a "one-time driver," it is bullish on the overall revenue outlook for the tech company. Sanderson set his price target to $320, which implies shares rallying 36.7% from Friday's close. He noted that Meta's Reels is now growing faster in the short-form video category than rival TikTok.

☆ Wall St Week Ahead Amid banking woes, faltering US small-caps offer ominous economic sign
▼ + stars: | 2023-05-14 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

NEW YORK, May 12 (Reuters) - A U.S. stocks rally is leaving behind smaller companies, a sign that investors may be bracing for economic turmoil ahead. "Typically in a recession, small caps underperform." Last month it downgraded its view on U.S. small caps from "unfavorable" to "most unfavorable." Some investors are more upbeat about the outlook for small caps, particularly when looking beyond the next several months. One reason is that small caps, being sensitive to economic fluctuations, tend to shine early in a market recovery.

☆ Why Alaska is getting rid of several dozen jets in high demand by airlines after only flying them for roughly 5 years
▼ + stars: | 2023-05-13 | by ( Taylor Rains | ) www.businessinsider.com time to read: +4 min

Alaska Airlines is retiring its 10 remaining Airbus A321neo aircraft on September 30. Alaska Airlines is on track to be an all-Boeing operator by year's end. In a recent earnings call, the Seattle-based carrier said the remaining 10 planes in its Airbus A321neo fleet will be retired by fall 2023. Alaska once had 72 Airbus aircraft after merging with Virgin America in 2018 and has already gotten rid of its A319 and A320ceo aircraft as of January 2023. With all of the Airbus planes gone, Alaska will only operate Boeing 737 jets in its mainline fleet.

☆ Companies are betting on a demand rebound in second half of year, DHL says
▼ + stars: | 2023-05-11 | by ( Lori Ann Larocco | ) www.cnbc.com time to read: +6 min

That marks the second consecutive month that U.S. imports increased and are higher than 2019 levels, according to data provided to CNBC from Descartes Datamyne, a global trade data platform. The combination of a slow ramp up from "Zero Covid" in China and the reopening of manufacturing plants in the country delayed exports. The top Vietnamese imports in the latest data are wrought iron fencing and plant stands, imported for companies including Home Depot. Black jewelry bags for Zales and men's and boy's t-shirts for Nike rounded out the list of U.S. imports data from China, Vietnam, Thailand, and India reviewed by CNBC. In April, the trade data shows that vitamins and containers of pencils were bound from India to Walmart , and zip polos and t-shirts for Guess .

There are "more questions than answers" surrounding Skyworks Solutions , BMO Capital Markets said in its downgrade of the company. "Semi stocks typically do not do well with [general margins] headwinds, especially when they are longer in duration," he added. The analyst noted that Skyworks has not had general margins below 50% since 2015. He added that while general margins in the second fiscal quarter were in line, outlook for the next two quarters is flat. Furthermore, Skyworks' recovery in China has been slower than anticipated, leading to underutilization of its factory network, according to Srivastava.

☆ Wall Street analysts like these regional bank stocks if you can withstand the chaos in the market
▼ + stars: | 2023-05-09 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +3 min

The continued slide for regional bank stocks after the failure of First Republic last week has created some buying opportunities in the sector, according to Wall Street analysts. "We believe this recent stock reaction is overdone as there is currently no evidence of accelerating deposit outflows. We see accelerating deposit costs, not accelerating deposit outflows, as the most significant headwind for the midcap banks over the next several quarters," Gosalia wrote. Huntington and Webster also rise to the top of the heap for RBC Capital Markets analyst Jon Arfstrom. Both Huntington and Webster are down about 30% for the year, which is better than the SPDR S & P Regional Banking ETF (KRE).

☆ Reshoring is an emerging trend, earnings calls show — A UBS analyst gives his top pick
▼ + stars: | 2023-05-09 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

This earnings season there was a lot of chatter about reshoring — and for UBS, Eaton stands out as the winner of the trend. Government incentives and supply chain security are among the reasons corporate America is jumping on board the booming reshoring trend , which means returning operations to companies' original country from overseas. Reshoring mentions were up 104% year over year during the latest round of earning reports, Bank of America wrote in a note Monday. "They have the broadest set of touchpoints throughout the reshoring process," UBS analyst Chris Snyder said. The U.S. reshoring projects announced so far should drive 3% to 6% market growth for the nation's electrical market over the next five to seven years, essentially doubling its previous growth, Snyder calculated.

☆ Here are Tuesday's biggest analyst calls: Microsoft, Apple, Alphabet, JPMorgan, PayPal, Shoals & more
▼ + stars: | 2023-05-09 | by ( Michael Bloom | ) www.cnbc.com time to read: +7 min

JPMorgan initiates Alkami as overweight JPMorgan said the regional banking software company has strong fundamentals. " Bernstein reiterates Microsoft as outperform Bernstein said AI is going "everywhere and in everything" that Microsoft does. Goldman Sachs reiterates PayPal as buy Goldman said it sees further earnings upside after the company's earnings report on Monday. " Raymond James reiterates Palantir as strong buy Raymond James said it's standing by its strong buy rating on shares of the AI beneficiary. Credit Suisse downgrades PayPal to neutral from outperform Credit Suisse said it's too "challenging" to recommend shares right now.

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☆ Activist investor Peltz tells Cramer he's not pursuing Club name Estee Lauder
▼ + stars: | 2023-05-08 | by ( Zev Fima | ) www.cnbc.com time to read: +3 min

Jim said he called Peltz, founding partner of hedge fund Trian Fund Management, who denied having any interest in Estee Lauder. The founding Lauder family owns roughly 38% of Estee Lauder common stock and dominates 86% of the voting power . Moreover, we see no need for activism at Estee Lauder. Freda undoubtedly misjudged the pace of the travel retail recovery amid China's gradual economic reopening this year. An Estee Lauder pop-up store is seen inside daimaru Department Store on Nanjing Road Pedestrian street in Shanghai, China, August 6, 2021.

We're buying 45 shares of Morgan Stanley (MS), at roughly $84.29 apiece. Following Friday's trade, Jim Cramer's Charitable Trust will own 1,400 shares of MS, increasing its weighting in the portfolio to 4.35% from 4.21%. Morgan Stanley has dropped 6% since its April 28, even with Friday's roughly 2% advance in the broader stock market rally. Angela Weiss | AFP | Getty ImagesWe're buying 45 shares of Morgan Stanley (MS), at roughly $84.29 apiece. Stock Chart Icon Stock chart icon Morgan Stanley YTD performance

☆ Apple results show iPhone's 'consumer staple nature' in a tough environment, Wall Street says
▼ + stars: | 2023-05-05 | by ( Samantha Subin | ) www.cnbc.com time to read: +3 min

Most Wall Street analysts like what they're seeing from Apple , viewing the iPhone maker's better-than-expected results as a sign of resilience and its continued ability to deliver even in a tough environment. Apple rose 2% in the premarket after posting earnings that beat expectations, driven by stronger-than-expected iPhone sales. Chatterjee has an overweight rating on Apple and a price target that implies upside of 14.6%. Softening demand 'casts a cloud' Despite the company's better-than-feared results, some analysts do expect volatility ahead. UBS analyst David Vogt reiterated his buy rating on the stock but said softening demand "likely casts a cloud on the stock near term."

☆ The dollar's bad run will continue as the Fed gears up to pause its rate-hiking campaign, UBS says
▼ + stars: | 2023-05-05 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

The dollar's weakening trend that started in late September is likely to continue, according to UBS. The prospect of Federal Reserve halting interest-rate increases will likely weigh on the greenback, strategists said. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. Its miserable run will likely continue as the Federal Reserve looks set to halt its interest-rate increases and given the risk of a banking crisis, according to UBS. UBS warned that a slowdown in US economic growth is also likely to weigh on the buck.

Lending standards, which were already at levels consistent with past recessions, according to several indicators in the most recent 'SLOOS' and NFIB surveys, will only tighten further. Although tighter credit conditions will weigh on economic activity, hiring and inflation, recession can still be avoided. A separate NFIB banking survey published this week shows small business owners are not hitting the panic button just yet, but concern is growing. "Small business owners are, not surprisingly, concerned about the stability of the banking system. A strong small business banking system is essential for small business owners to operate and grow their business," Holly Wade, executive director of NFIB's Research Center said.

☆ FX won't be a major headwind this quarter, says TD Cowen's Krish Sankar ahead of Apple earnings
▼ + stars: | 2023-05-04 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFX won't be a major headwind this quarter, says TD Cowen's Krish Sankar ahead of Apple earningsKrish Sankar, TD Cowen managing director, joins 'Power Lunch' to discuss Apple's upcoming quarterly earnings release, its media ventures, and more.

☆ How China’s slower post-Covid recovery is playing out for our Club stocks this earnings season
▼ + stars: | 2023-05-04 | by ( Paulina Likos | ) www.cnbc.com time to read: +6 min

A slower-than-expected recovery in China is proving to be a challenge for some of our Club holdings that do lots of business there. The company blamed a slower post-Covid recovery in its Asia travel retail business for the dismal outlook. SBUX YTD mountain Starbucks' stock year to date performance. 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 .

☆ Club meeting recap: Equities slide, J&J consumer IPO, Costco sales
▼ + stars: | 2023-05-04 | by ( Paulina Likos | ) www.cnbc.com time to read: +3 min

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. Stocks slide amid mounting volatility J & J launches consumer IPO Buy Costco here 1. J & J priced shares of Kenvue at $22 apiece, valuing the new company at $41 billion. 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.

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