CWS Market Review – February 13, 2024
Posted by Eddy Elfenbein on February 13th, 2024 at 7:16 pm

(This is the free version of CWS Market Review. If you like what you see, then please sign up for the premium newsletter for $20 per month or $200 for the whole year. If you sign up today, you can see our two reports, “Your Handy Guide to Stock Orders” and “How Not to Get Screwed on Your Mortgage.”)

Inflation Is Still With Us

Maybe inflation is more stubborn than we thought. On Tuesday, the government said that consumer inflation rose by 0.3% last month. That was 0.1% higher than expected.

Even though the CPI report was only slightly higher than expectations, it upset the consensus that inflation has been licked. Prior to the report, it looked as if the 12-month rate of inflation was about to fall below 3%. That hadn’t happened in nearly two years.

Well, it still hasn’t happened. Over the last year, inflation is now running at 3.1%. That’s down from 3.4% which was the 12-month rate ending in December. Inflation is still running well above the Federal Reserve’s goal of 2%.

Today’s CPI report is a perfect extension of Jerome Powell’s recent comments that the Fed is in no hurry to cut rates and that the central bank wants to see more benign inflation data. Today, we didn’t get it.

The stock market was less than pleased. That makes sense if interest rates stay higher for longer. The S&P 500 dropped 1.37% today, and the index is now back below 5,000. The small-cap Russell 2000 fell more than 4%.

We should also bear in mind what a strong stock market this has been. The S&P 500 has risen 14 times in the last 15 weeks (see above). Since late October, today was the index’s third daily loss of more than 1%.

What’s driving the stubborn inflation numbers? That’s not hard to find. Last month, shelter prices increased by 0.6%, and shelter costs make up a sizeable portion of the CPI. Shelter costs accounted for two-thirds of the entire increase in inflation. Over the last 12 months, shelter prices are up by 6%.

Let’s break down the numbers. The core rate of inflation, which excludes food and energy prices, rose by 0.4% last month. That was also 0.1% higher than expectations. Over the last year, core inflation is running at 3.9%.

“Food prices moved higher as well, up 0.4% on the month. Energy helped offset some of the increase, down 0.9% due largely to a 3.3% slide in gasoline prices.”

Used vehicle prices declined 3.4%, apparel costs fell 0.7% and medical commodities declined 0.6%. Electricity costs rose 1.2% and airline fares increased 1.4%. At the grocery store, ham prices fell 3.1% and eggs jumped 3.4%.

Here’s a look at the seasonally-adjusted monthly core rate of inflation.

Notice how the right-most bar appears to break the downward trend. That could be a small outlier or it may show that inflation is pushing back.

Last Friday, the government revised its seasonally adjusted data. Normally, these revisions are the territory of serious data nerds, but last year it actually made news. That’s because the revisions showed that inflation wasn’t coming down as quickly as previously believed. This time, however, the data was largely unchanged.

Don’t Expect the Fed to Cut Anytime Soon

One favorable note is that wages are still rising even after being adjusted for inflation. Last month, inflation-adjusted hourly earnings rose by 0.3%. Over the last year, real earnings are up by 1.4%.

The problem, however, is that wages are measured in per-hour, and number of hours worked has declined. In other words, employers haven’t stopped hiring, but they are cutting back on the number of hours. Real weekly earnings have declined by 0.3%.

Today’s CPI had a major impact on the outlook for the economy and for stocks. It now looks like a March rate cut from the Federal Reserve is completely off the table. A rate cut in May be doubtful as well.

One month ago, the odds for a rate cut at the March meeting stood at 77%. Now it’s at 8%. The odds of a rate cut in May are at 35%. Interestingly, traders are merely changing their timetable for rate cuts but not for their degree. One year from today, futures traders see interest rates a full 1% lower than they are now.

Tuesday was an interesting day on the markets. For one, the S&P 500 had one of its worst days in months, but it was also interesting to see how the pain was spread. For example, the Utilities and REITs were the two worst-performing sectors today. That makes sense if interest rates are to remain high.

Many defensive stocks did well today, and this is a good reminder that having a large dividend doesn’t necessarily make a stock defensive. From our Buy List, shares of Hershey (HSY) and Cencora (COR) both closed higher today. If the economy suffers, those two businesses will likely hold up well.

On days like today, I like to watch the relative performance of High Beta stocks compared with Low Volatility Stocks. This is a quick and easy way to see how the stock market is reacting to risk. Today, the market didn’t like risk at all. The S&P 500 High Beta Index fell 2.96% while the S&P 500 Low Volatility Index fell only 0.79%.

Many hard assets, like gold, did well today. Oil also had a good day. These are classic “inflation trades.”

One stock that’s received a lot of attention recently is Arm Holdings (ARM), a British semiconductor stock. SoftBank bought Arm in 2016. A few years later, Nvidia tried to buy Arm but the deal fell through. Arm eventually went public five months ago at $51 per share, but SoftBank still owns 90% of the shares. It’s basically a publicly-traded subsidiary.

In Arm’s first day of trading, the stock got to $61 per share, but it was trading below its IPO price a few days later. Then things got interesting. The company reported very good earnings and gave optimistic guidance.

One week ago, Arm closed at $72.98 per share. It then jumped 5.5% on Wednesday followed by a blistering 48% increase on Thursday. The stock rallied another 29% on Monday. All told, the stock doubled in four trading days. Arm is actually worth more than SoftBank, if you can imagine that.

There are also rumors that Arm is the victim (or beneficiary) of a short squeeze. This is when many investors bet against a stock, but it goes up anyway. At some point, those shorts are forced to close out their positions which entails buying more stock. In turn, that causes the price to go even higher, and more shorts are squeezed.

The prospects of higher interest rates aren’t good for such volatile stocks. Shares of ARM fell 19.5% today.

Stock Focus: Casey’s General Stores

I have to confess that I was not familiar with Casey’s General Stores (CASY) until recently. I was told about it by some friends in the Midwest where Casey is very popular. It’s basically a gas station masquerading as a pizza shop. Or vice versa. It really doesn’t matter.

The idea is simple. If you drive a car, you’ll need gas. If you’re going to go to a gas station, you might as well choose the place that has pizza as well.

Casey’s is based in Iowa and the stores are mostly in Iowa, Missouri and downstate Illinois. The company also has an impressive presence in the other Midwestern and Plains states. There are now over 2,500 locations in 16 states. Casey’s prefers to locate in small towns where there’s less competition. There isn’t a Casey’s within several hundred miles of Wall Street.

The stock has been a huge winner over the years. Since 1991, Casey has returned more than 300-fold. Check out this chart:

The S&P 500 Total Return Index (in blue) nearly looks like a flat line when compared with Casey.

The company currently has a market value of $10 billion. It’s a member of the S&P Mid-Cap 400. Last year, it did $15 billion in sales.

In November, Casey reported very good fiscal-Q2 earnings. For the three months ending on October 31, Casey made $4.24 per share which beat expectations by 44 cents per share.

The fiscal Q3 earnings report should be out in early March. Wall Street currently expects earnings of $2.10 per share.

That’s all for now. I’ll have more for you in the next issue of CWS Market Review.

– Eddy

P.S. If you want more info on our ETF, you can check out the ETF’s website.

Morning News: February 13, 2024
Posted by Eddy Elfenbein on February 13th, 2024 at 7:02 am

Farmers’ Revolt Threatens Election Year Upsets Around the World

Greece Offers Cheaper Power to Farmers to Avert Athens Protest

OPEC Sticks to Oil-Demand Growth View, Lifts Economic Forecast

Russia Warns the West: We Will Be Very Tough If You ‘Steal’ Our Assets

Buy Now and Pay Later Schemes Gain Traction Among Thrifty Germans

Crunch Time Nears for FX Traders Grappling With Faster Trading

Japan’s Nikkei Hits 34-Year High

RBA’s Kohler Sees Substantial Uncertainty Around Inflation Forecasts

US CPI Data to Show Services as Key Driver of Disinflation

What a Split in Consumer Confidence Means for Biden

Former Hedge Fund Star Says This Is What Will Trigger the Next Bear Market

Macquarie Banker Who Earned More Than Jamie Dimon Steps Down

A Texas Oil Driller Banks a $26 Billion Deal, With Regrets

America’s ESG Hiring Boom Is Starting to Cool

U.K. Labor Market Remains Tight as Unemployment Unexpectedly Falls

Why Work Is So Miserable in America

Adobe’s Very Cautious Gambit to Inject AI Into Everything

TUI Revenue Soars to Record High on Surging Customer Demand

Office Towers Reshaped US Skylines. Now Construction Cranes Are Vanishing

Commercial-Property Loans Coming Due in US Jump to $929 Billion

Student Housing Has a New Mantra: Bigger Is Better

Coca-Cola Revenue Tops Estimates on Firm Demand, Higher Prices

Burger King Owner’s Fourth-Quarter Sales Outpace Expectations

Temu Spent Millions on Six Super Bowl Ads as It Tries to Win Back US Shoppers

Super Bowl Viewership Rose to 123.4 Million, a Record High

Leaving Las Vegas to High Rollers, Some 49ers Fans Chose Reno

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Morning News: February 12, 2024
Posted by Eddy Elfenbein on February 12th, 2024 at 7:02 am

Ship in Red Sea Signals All-Muslim Crew to Avoid Houthi Attack

Oil Slips After Rally Last Week on Middle East, Tight Supply

In Trump-Biden Rematch, the Only Sure Loser Is China

Economists Haven’t Been This Critical of a Tight Fed in 13 Years

Private Equity Returns Plunge to Global Financial Crisis Levels

New Hedge Funds Struggle While Established Players Raise Fees to Record Highs, Goldman Says

Some Hedge Funds Keep Over Half of Their Profits Through Customer Fees

Bitcoin’s Bounce Doesn’t Settle the Biggest Worries About Crypto

Real Estate Pain for US Regional Banks Is Piling Up, Say Investors

Citi Hit By New Fed Rebuke, Setbacks on Consent Orders

He Grew Up in the Shadow of the ‘Wolf of Wall Street.’ Then He Got Into Debt Settlement

German Commercial Property Prices Post Biggest-Ever Drop, Data Shows

Diamondback to Buy Endeavor for $26 Billion in Oil Megadeal

Galp Expects Lower Earnings This Year

How China Built BYD, Its Tesla Killer

Can the U.S. Break China’s Grip on Solar?

A Crowd Set Fire to a Waymo Taxi in San Francisco, as Tensions About Driverless Tech Grow

What Happens When TikTok Is Your Marketing Department

Elon Musk Isn’t the Only Billionaire Fighting Delaware

EQT Consortium Launches $1.64 Billion Bid for French Digital Music Company Believe

What I Got Wrong About Loyalty at Work

US Employers Brace for About 16 Million Super Bowl Sick Days

Gyms Face Tough Year as Key January Growth Screeches to a Halt

Hate Valentine’s Day? There’s a Market for You, Too

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Morning News: February 9, 2024
Posted by Eddy Elfenbein on February 9th, 2024 at 7:02 am

Barclays to Adopt Fresh Curbs on Oil and Gas Financing

The Oil Was From Iran. The Insurance Was From New York

China’s Property Crisis Is Starting to Ripple Across the World

ECB Warns Banks to Grasp Real Estate Risks or Face Capital Hits

Japanese Stocks Cross New Milestone as Record High Comes Into View

Hedge-Fund Short Sellers Revel in Hidden Cash Perk Like 2007

Barclays Gives Dozens of Bankers Nothing in Grim Bonus Round

How Empty Office Space Became the New Bogeyman on Wall Street

Arm’s Post-Earnings Pop Leaves Stock Trading at Over 100% Premium to Nvidia

Hyundai Picks JPMorgan, Citi to Accelerate $3 Billion India IPO

40% of Lawyers Are Women. 7% Are Black. America’s Workforce in Charts

Some Colleges Are Pivoting as FAFSA Delays Drag On

It’s Easy to Enter the Asian Market During Lunar New Year. It’s Hard to Get it Right

Chocolate: Cocoa Price Hits Record High as El Niño Hurts Crops

PepsiCo Posts an Earnings Beat. Why the Stock Is Falling

Novo Nordisk Has a Weight-Loss Pill But Can’t Make It Yet

Mexican Retailer BBB Tops IPO Goal to Raise $589 Million

NFL Succession Crisis Forces Teams to Let Private Equity In

Super Bowl Broadcast Is a Crossroads for CBS Sports

ESPN’s Pat McAfee Is the Edgy-ish, Brand-Safe Ambassador the NFL Wants

The Goal for Super Bowl Ads This Year: Don’t Offend Anyone

It’s Time to Talk About Those Taylor Swift Super Bowl Bets

Shares of Assassin’s Creed Maker Ubisoft Surge After Confirming Guidance

Hermes Positive on 2024 After Sales Growth

Too Hot to Cuddle? Build-A-Bear’s Adult Line Leaves Some Blushing

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Morning News: February 8, 2024
Posted by Eddy Elfenbein on February 8th, 2024 at 7:06 am

Two Cases Aim to Cut Off China and Iran From U.S. Technology

A 99% Bond Wipeout Hands Hedge Funds a Harsh Lesson on China

China Deflation Alarms Raised by Falling Prices for Food and Cars

For First Time in 20 Years, U.S. Buys More From Mexico Than China

The Confusingly Strong Economy Told in Three Stories

Risk of Big US Inflation Revision Puts Policymakers, Investors on Edge

Einhorn Says Markets ‘Fundamentally Broken’ By Passive, Quant Investing

The Real Estate Crisis Looming Over Banks

Real Estate Turmoil Leaves German Banks Reliant on Covered Bonds

Big Dreams Come Back to Bite New York Community Bank

NYCB in Talks to Offload Mortgage Risk, Exploring Loan Sales

SoftBank Returns to Health as Silicon Valley and Chip Investments Prosper

McKinsey Places 3,000 Staffers on Review

Maersk Shares Sink Back to Reality

After Its $20 Billion Windfall Evaporated, a Start-Up Picks Up the Pieces

OpenAI’s Secret Weapon Is Sam Altman’s 33-Year-Old Lieutenant

Microsoft Partners with India’s Sarvam AI for Voice-Based GenAI Tools

How Jack Dorsey’s Plan to Get Elon Musk to Save Twitter Went South

Ozempic Maker Novo Gets Calls From ‘Scared’ Food CEOs

Vision Pro Review: Apple’s First Headset Lacks Polish and Purpose

Strong Earnings, and Taylor Swift, Add to Disney’s Defenses

Disney to Invest $1.5 Billion in Fortnite Maker Epic Games

Small Businesses Must Now Report Ownership Information to the Government. But Many Don’t Know About It

Construction Industry Grapples With Its Top Killer: Drug Overdose

Super Bowl Ads: More Star Power, More Candy and Other Trends in Five Charts

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Morning News: February 7, 2024
Posted by Eddy Elfenbein on February 7th, 2024 at 7:06 am

China Replaces Top Markets Regulator as Xi Tries to End Rout

A China-U.S. Decoupling? You Ain’t Seen Nothing Yet

A Stock Bailout Won’t Solve China’s Troubles

How Russia Benefits From Libya’s $5 Billion Fuel-Smuggling Trade

ECB Must Be Patient With Rate Cuts, Schnabel Tells FT

Bank of Canada Faces Limits on Addressing Housing Affordability, Macklem Says

NYCB Is Cut to Junk by Moody’s

Joe Lewis’ $7.6 Billion Global Empire Weathers His Biggest Test

Why Most Millionaires Want a Wealth Tax: “There’s a Certain Alarmism Among the Wealthy About Trump”

Why Americans Are So Down on a Strong Economy

Adam Neumann Crashes Into WeWork’s High-Wire Revival Act

Snap Doesn’t Get Its Meta-Moment

Snap Shares Plummet After First-Quarter Guidance Disappoints

Uber Posts First Annual Profit Since Its IPO

How Ford’s F-150 Lightning, Once in Hot Demand, Lost Its Luster

EVs Won Over Early Adopters, But Mainstream Buyers Aren’t Along For The Ride Yet

Tesla Sold Just One Electric Car in South Korea Last Month as Some Korean Consumers Worry About Vehicles Made in China

Alibaba Boosts Stock Buybacks as Profit Slumps

CVS Health Cuts 2024 Guidance, Citing ‘Potential Implications’ of Higher Medical Costs

Hospital CIOs Weigh 5G as Digitized Medicine Pushes Wi-Fi to Its Limits

Vestas Beats Profit, Revenue Views After Record Order Intake

Target Weighs Paid Membership Program Similar to Amazon Prime

Yum Brands Disappoints as KFC, Taco Bell and Pizza Hut Fall Short of Same-Store Sales Expectations

Brazil Mogul Wants to Sell the World’s Best ESG Chocolate

ESPN, Fox and Warner Bros. Join for Sports Streaming Service

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CWS Market Review – February 6, 2024
Posted by Eddy Elfenbein on February 6th, 2024 at 8:13 pm

(This is the free version of CWS Market Review. If you like what you see, then please sign up for the premium newsletter for $20 per month or $200 for the whole year. If you sign up today, you can see our two reports, “Your Handy Guide to Stock Orders” and “How Not to Get Screwed on Your Mortgage.”)

You Can Forget About That March Rate Cut

Well, maybe the Fed won’t be raising interest rates next month!

Over the last few days, we’ve gotten some important news that’s completely shifted our expectations for what the Fed’s plans are. It looks like the Federal Reserve probably will not be cutting interest rates at its March meeting. This new outlook is having a major impact on Wall Street. In two days, the yield on the three-year Treasury rose from 3.96% to 4.27%.

This change in outlook has impacted the stock market as well. On Friday, the S&P 500 closed at a new all-time high, but it was a very narrow market. By that, I mean that most of the heavy lifting was being done by a few stocks. Facebook, for example, gained more than 20%. Even though the S&P 500 rallied more than 1% on Friday, the average stock in the index was down for the day.

J.C. Parets noted that on Monday, we saw the fewest stocks on the NYSE above their 200-day moving average since early December, and the fewest above their 50-day moving average since mid-November.

The stock market finished just shy of a new all-time close today.

This is a confusing and temperamental market. Let’s breakdown what’s going on. We’ll start with last week’s jobs report.

Wall Street got a big shock on Friday when the January jobs report came in much better than expectations. Wall Street had been expecting a gain of 185,000 net new jobs. That wasn’t even close. Instead, the Labor Department said that the U.S. economy added 353,000 new jobs last month.

Who would have guessed that an aggressive interest rate policy from the Fed seems to have had little impact on the labor market? Not me.

Wall Street had been expecting the unemployment rate to rise to 3.8%. Instead, it stayed at 3.7%. If you work out all the decimals, then the current unemployment rate is lower than it was during every single month in the 1970s, 80s, 90s and 00s. All the way through 2018. (To be fair, the methodology hasn’t remained consistent over that time.)

We’re also seeing a pickup in wages. In January, average hourly earnings grew by 0.6%. That doubled Wall Street’s forecast. Over the last year, wages are up by 4.5%. The problem is that any previous wage growth had largely been eaten up by inflation. That’s not so much the case anymore.

Not only was January a good month for job growth, but the Labor Department also revised higher its numbers for November and December. The original estimate for December was for a jobs gain of 117,000. Now the Labor Department says it was 333,000. The number for November was revised upward by 9,000.

Here are some more details from the jobs report:

Job growth was widespread on the month, led by professional and business services with 74,000. Other significant contributors included health care (70,000), retail trade (45,000), government (36,000), social assistance (30,000) and manufacturing (23,000).

The broader U-6 rate increased to 7.2%. Also, the labor force participation rate stayed the same at 62.5%. If we look at the labor force participation rate for prime-working age folks (25 to 54), that rose to 83.3% which isn’t far from a 20-year high.

One interesting bit in the jobs report is that hours worked declined even though wage is holding up well. That may suggest that employers are opting to reduce hours instead of cutting jobs. It’s hard to say if this is a trend just yet, but it’s worth watching.

The jobs report came one day after the strong Q4 GDP report. That report said that the U.S. economy grew at a real annualized rate of 3.3% during the final three months of 2023. That’s quite good. The Atlanta Fed’s GDPNow model just raised its forecast for Q1 GDP growth from 3.0% to 4.2%.

With the economy growing and creating new jobs, why is the Fed in such a rush to raise interest rates? Well, it turns out that the Fed isn’t in a hurry to raise interest rates.

Fed Chairman Jerome Powell was interviewed on 60 Minutes. The interview aired on Sunday. In it, Powell said that although he’s pleased with the direction in inflation, he and the FOMC aren’t fully convinced that the battle is over.

PELLEY: You’ve avoided a recession. Why not cut the rates now?

POWELL: Well, we have a strong economy. Growth is going on at a solid pace. The labor market is strong: 3.7% unemployment. And inflation is coming down. With the economy strong like that, we feel like we can approach the question of when to begin to reduce interest rates carefully.

And, you know, we want to see more evidence that inflation is moving sustainably down to 2%. We have some confidence in that. Our confidence is rising. We just want some more confidence before we take that very important step of beginning to cut interest rates.

PELLEY: What is it you’re looking at?

POWELL: Basically, we want to see more good data. It’s not that the data aren’t good enough. It’s that there’s really six months of data. We just want to see more good data along those lines. It doesn’t need to be better than what we’ve seen, or even as good. It just needs to be good. And so, we do expect to see that. And that’s why almost every single person on the, on the Federal Open Market Committee believes that it will be appropriate for us to reduce interest rates this year.

I added the boldface. In short, Powell wants to see more good data, and the FOMC thinks rates need to be cut sometime this year.

In the trading pits, Wall Street traders think there’s only a 20% chance that the Fed will cut at its next meeting. That’s a big change in a short amount of time. Just one month ago, the odds of a March cut were at 64%.

The odds of a cut in May were at 95%. Now they’re at 67%.

We’re still in the thick of Q4 earnings season. Frankly, the results haven’t been that great. The first batch of earnings were weak, but the numbers have gotten a bit better.

According to the most recent numbers, 46% of the stocks in the S&P 500 have reported results. Of that, 72% have beaten on earnings and 65% have beaten on revenue. That’s actually not that good. (On Wall Street-istan, you’re expected to beat expectations.) The five-year average is a 77% beat rate for earnings and a 68% beat rate for revenue.

The old Wall Street formula is to lower the expectations bar so low that you can easily step over it. Then declare victory.

Earnings are tracking growth of 1.6%. The average report is 2.6% above estimates. That’s below the five-year average of 8.5%.

Follow-Up on the WillScot/McGrath Deal

Last week, I told you about WillScot Mobile Mini Holdings (WSC) and its offer to buy out McGrath RentCorp (MGRC).

I bring it up again because the behavior of both stocks has been unusual. Normally, the acquirer’s stock falls, but not this time. Shares of WSC have rallied. Meanwhile, McGrath has rallied well above its cash buyout price.

Here’s how it’s supposed to work. The deal is 60% cash and 40% stock. McGrath shareholders have a choice. For each share of MGRC they own, they can either get $123 in cash or 2.8211 shares of WillScot Mobile Mini, but MGRC closed today at $128.71 per share. That’s well above the cash offer price. Meanwhile, WSC closed today at $50.13 per share. That values MGRC at $141.42 per share which is 10% above the current share price, and 15% above the cash price.

Normally, the buyout target wants the cash portion of the deal so they’re protected from a sudden plunge in the acquirer’s stock. This time, it seems that the cash side of the deal is an anchor. I won’t be surprised if the details of this deal are refined in the coming weeks. WillScot will report its Q4 earnings on February 20, and McGrath reports the next day.

That’s all for now. I’ll have more for you in the next issue of CWS Market Review.

– Eddy

P.S. If you want more info on our ETF, you can check out the ETF’s website.

Morning News: February 6, 2024
Posted by Eddy Elfenbein on February 6th, 2024 at 7:03 am

Xi to Discuss China Stocks With Regulators as Rescue Bets Build

China Is Pumping Money Into Stocks and Markets Are Loving It

Wall Street Snubs China for India in a Historic Markets Shift

Yellen Says Stable Financial System Is Key to U.S. Economic Strength

Banks Sue Regulators Over Anti-Redlining Rule

JPMorgan to Open More Than 500 New Bank Branches Over Next Three Years

UBS Restarts Buyback as Ermotti Slogs Through ‘Pivotal’ Year

NYCB’s Tense Talks With Watchdog Led to Moves That Rocked Market

Brookfield Wants $15 Billion for Real Estate Bet After Stumbles

Facebook’s First Dividend Stands to Make a Few Very Rich

Alibaba’s 80% Loss May Extend on Competition Worries

Summer Has Long Stressed Electric Grids. Now Winter Does, Too

BP Joins Oil Majors With Resilient Profit Beat; Lifts Buyback

F.A.A. Chief Plans to Pledge ‘More Boots on the Ground’ at Plane Factories

Boeing’s Next Crisis: Aerospace Workers Demanding 40% Pay Raise

TSMC to Build Second Chip Plant in Japan

Toyota Cashes In on Booming Hybrid Sales

KDDI Plans to Acquire Further Stake in Japan Convenience-Store Operator Lawson for $3.3 Billion

Lilly’s Zepbound Debut Drives Sales, Pushing Shares Even Higher

Spotify Beats Forecasts for Subscriber Growth; Shares Gain

Who’s Who in the Battle Over Disney’s Board

Blackstone’s $80 Trillion Opportunity

How Loud Billionaires Convert Their Wealth Into Power

Inside a Private Jet Club Where Everything Went Wrong

$7 Million for 30 Seconds? It’s Worth It at the Super Bowl

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Morning News: February 5, 2024
Posted by Eddy Elfenbein on February 5th, 2024 at 7:03 am

Eastern Europe’s Richest Woman Pivots $43 Billion Empire West

China Tightens Some Trading Restrictions for Domestic and Offshore Investors

China Stocks Post More Wild Swings After Beijing Stability Vow

China Real-Estate Projects Set to Receive Loans Under ‘Whitelist’ Program

Top U.S. Treasury Officials to Visit Beijing for Economic Talks

Gold Prices to Hit $2,200 and a ‘Dramatic’ Outperformance Awaits Silver in 2024, Says UBS

Powell Tells ‘60 Minutes’ Fed Is Wary of Cutting Rates Too Soon

Why Are Americans Wary While the Economy Is Healthy? Look at Nevada

How Nevada Is Pushing to Generate Jobs Beyond the Casinos

Morgan Stanley and Goldman Spoil Private Credit’s Record Deal

Why NYC Apartment Buildings Are on Sale Now for 50% Off

What Business Leaders Are Saying About the Red Sea Attacks

McDonald’s Sales Growth Slows as Mideast War Hurts Results

Big Oil’s Optimism Faces Reality Check in Tech-Obsessed Market

Why Is Big Tech Still Cutting Jobs?

Merck to Buy Elanco’s Aqua Business for $1.3 Billion

Apple Vision Pro’s First Test: Will People Wear It in Public?

Google and Yahoo Are Cracking Down on Inbox Spam. Don’t Expect Less Email Marketing

Samsung’s Leader Acquitted in Stock and Accounting Fraud Case

Yandex Owner to Sever Ties to Russia With $5.2 Billion Sale

Wegovy Maker to Boost Production Capacity With Multibillion-Dollar Deal

Team Cow or Team Soy: The Milk Wars Roiling America

How Much for Thin Mints? Some Girl Scouts Raise Cookie Prices

What Happens to Chinatown When the Sports Teams Leave

World Cup 2026 Final Goes to NYC-Area in Victory Over Dallas and LA

N.F.L.’s Rapid Embrace of Gambling Creates Mixed Signals

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Morning News: February 2, 2024
Posted by Eddy Elfenbein on February 2nd, 2024 at 7:02 am

India’s Quiet Push to Steal More of China’s iPhone Business

China Criticizes IMF’s Growth Outlook, Calls to Boost Confidence

Homebuyers in Canada Are So Frenzied They Won’t Wait for Rates to Go Down

Commercial Real Estate’s Slow-Motion Crisis Explained

A New Perk for Some Student Loan Borrowers: A 401(k) Match

US Jobs Report to Show Slower Hiring Pace After Annual Revisions

Biden Takes Aim at Grocery Chains Over Food Prices

Missing Chinese Banker Resigns After Investigation

What’s Really Going On with Bank Stocks

BofA’s Hartnett Says Stock Markets Are Behaving Like Dot-Com Era

US Equity Funds Draw Inflows Amid Positive Economic and Inflation Data

JPMorgan’s Trades Threaten to Take Privacy Out of Private Credit

US Regional Bank Stocks Brace for Final Trading Session of Painful Week

Meta, Amazon Surge by $279 Billion After Cuts Boost Profit

Amazon Enters Chatbot Fray With Shopping Tool

Exxon, Chevron Surpass Forecasts as Shale Drilling Lifts Output

Tesla Runs Afoul of Font-Size Rule in 2.2 Million Electric Cars

China’s New Energy Vehicle Sales Are Softening in Early 2024

A Year After Bankruptcy Concerns, Carvana is Leaner and Ready for its Wall Street Redemption

AbbVie Sees Signs of Post-Humira Growth in Positive 2024 Outlook

Bristol Sees New Drugs Fueling Upbeat 2024 Profit Outlook

Dual Mission for Macy’s New Chief: Revive Stores and Fend Off Takeover

Barbie Owner Mattel Draws Activist Seeking Changes at Toy Maker

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