
<h2 class="wp-block-heading" id="h-topline">Topline</h2>



<p>Earnings for two of the U.S.’ handful of trillion-dollar companies came out Wednesday afternoon as Meta and Microsoft will update investors, kicking off a crucial week for on-edge big technology stocks as tariffs complicated investor appetite for artificial intelligence-driven growth.</p>



<h2 class="wp-block-heading" id="h-key-facts">Key Facts</h2>



<p>Microsoft generated $70.1 billion in revenue and $3.46 EPS ($25.8 billion net income), compared to consensus forecasts calling for $68.4 billion in revenue and $3.22 earnings per share ($24.1 billion net income) for Microsoft, according to FactSet data, scoring a 13% year-over-year increase in sales and 18% jump in profit.</p>



<p>Those are the best-ever quarterly revenue and profit totals in Microsoft’s history.</p>



<p>Shares of Microsoft shot up 6% following the earnings release, trading at about $420 after hours.</p>



<p>Fellow big tech firm Meta, the parent of Facebook, also exceeded Wall Street expectations, as its $42.3 billion in revenue and $6.43 EPS smashed forecasts of $41.4 billion in revenue and $5.23 EPS.</p>



<p>Meta said it expects second-quarter revenue to come in between $42.5 billion and $45.5 billion, well above consensus projections of $41.3 billion.</p>



<p>Meta stock gained about 5% to more than $570.</p>



<h2 class="wp-block-heading" id="h-key-background">Key Background</h2>



<p>Microsoft is the U.S.’ second most valuable company with a $2.9 trillion market capitalization, and Meta is the sixth-largest firm with a $1.4 trillion market cap. Meta and Microsoft are two of the so-called “magnificent seven” big tech companies, joining Google parent Alphabet, Amazon, Apple, Nvidia and Tesla. The septet comprises a third of the S&amp;P 500’s total market capitalization thanks to their outsized influence in the artificial intelligence bonanza. Microsoft makes its AI hay via its Azure enterprise cloud computing unit and its stake in ChatGPT parent OpenAI, while Meta just launched a competitor app to the generative AI dominator ChatGPT,&nbsp;<a href="https://www.forbes.com/sites/antoniopequenoiv/2025/04/29/heres-what-to-know-about-metas-standalone-ai-app-to-rival-chatgpt/">Meta AI</a>. Meta and Microsoft shares have both slumped this year amid the broader stock market pullback as investors’ risk profile weakened. Meta and Microsoft stocks declined 5% year-to-date apiece through Wednesday, excluding dividends, though that’s stronger than the 15% or more losses from Amazon, Apple and Nvidia, all of which have far heavier exposure to China than Meta and Microsoft.</p>



<h2 class="wp-block-heading" id="h-tangent">Tangent</h2>



<p>Meta CEO Mark Zuckerberg and former Microsoft CEO Steve Ballmer were among the 10 billionaires whose net worth fell the most during President Donald Trump’s first 100 days, losing a combined $30 billion,&nbsp;<a href="https://www.forbes.com/sites/chasewithorn/2025/04/29/the-biggest-billionaire-winners-and-losers-of-trumps-first-100-days/">according</a>&nbsp;to Forbes’ calculations.</p>



<h2 class="wp-block-heading" id="h-what-to-watch-for">What To Watch For</h2>



<p>Thursday will be another magnificent seven earnings doubleheader, as retail titan Amazon and iPhone maker Apple will share quarterly results.</p>



<h2 class="wp-block-heading" id="h-crucial-quote">Crucial Quote</h2>



<p>“This is a key few days ahead for the markets and tech world,” remarked Wedbush analyst Dan Ives. The trade war is a “key X variable for tech stocks,” noted Ives, adding<strong> </strong>this week’s reports should provide a glimpse into how demand has held up among businesses and consumers amid the economic uncertainty.</p>


Views Of London England’s Capital City

Meta And Microsoft Stocks Soar On Robust Earnings Reports


<h2 class="wp-block-heading" id="h-topline">Topline</h2>



<p>Netflix had its best quarter ever, according to earnings results announced Thursday afternoon, setting the stakes for Netflix stock moving forward after it emerged as a perhaps surprising stock market safe haven during the recent&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2025/04/14/trump-celebrates-last-weeks-largest-gain-in-stock-market-history-but-stocks-are-still-down-during-his-second-term/">slump</a>.</p>



<h2 class="wp-block-heading" id="h-key-facts">Key Facts</h2>



<p>In its Q1 report released shortly after 4 p.m. EDT market close, Netflix reported its best-ever quarterly earnings per share and revenue numbers.</p>



<p>Netflix scored $6.61 EPS ($2.9 billion net income) and $10.54 billion last quarter, besting consensus analyst estimates calling for the entertainment titan to report $5.67 adjusted EPS ($2.5 billion net income) and $10.5 billion in sales, according to FactSet data.</p>



<p>The company said it expects $11 billion in sales and $7.03 EPS during the second quarter, topping top and bottom line forecasts of $10.9 billion and $6.25, respectively.</p>



<p>Shares of Netflix rose 1.2% to $973 on Thursday, surging another 3% in after-hours trading to nearly $1,000 per share.</p>



<h2 class="wp-block-heading" id="h-netflix-stock-emerges-as-a-potential-recession-winner">Netflix Stock Emerges As A Potential Recession Winner</h2>



<p>Netflix has emerged from the 2025 stock losses stronger, gaining 4% since April 2 and 9% year-to-date. That came as the S&amp;P 500 (down 6% since April 2, 10% year-to-date excluding dividends) and the Nasdaq (-7%, -15%) both pulled back as President Donald Trump’s trade war heightened recession concerns. Many analysts herald Netflix stock as a safe parking spot as economic slowdown fears swirl. “If a recession hits, we would expect Netflix subscribers to be sticky as Netflix is a stay-at-home cheap diversion, of the type that has held up well in past recessions,” Rosenblatt analyst Barton Crockett wrote in a Monday note to clients. “Amid recent market volatility, Netflix&#8217;s strong subscription model with critical entertainment (which historically has performed well in a recession) has made the stock a defensive choice for investors,” Bank of America analysts led by Jessica Reif Ehrlich concurred in a Tuesday note.</p>



<h2 class="wp-block-heading" id="h-surprising-fact">Surprising Fact</h2>



<p>Netflix has far outperformed other members of the “FAANG” group, smashing returns this year from the other high-growth technology names: Facebook parent Meta (down 14% year-to-date excluding dividends), Amazon (-21%), Apple (-21%) and Google parent Alphabet (-19%). Netflix has also outperformed Disney (-23% year-to-date) and Max parent Warner Bros. Discovery (-23%), though audio streamer Spotify’s 29% gain this year tops Netflix’s.</p>



<h2 class="wp-block-heading" id="h-what-to-watch-for">What To Watch For</h2>



<p>Fellow FAANG constituents Alphabet and Amazon will join Netflix in reporting Q1 earnings next week. Both West Coast titans will deliver results next Thursday.</p>


Video Streaming Platforms Stock Photos

Netflix Earnings: Record Profits And Sales Send Stock To Nearly $1,000


<h2 class="wp-block-heading" id="h-topline">Topline</h2>



<p>Stocks roared back to life Wednesday afternoon after President Donald Trump announced a 90-day delay on the most significant of his tariffs, just hours after the levies went into effect, sparking extensive&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2025/04/08/stocks-slide-again-as-tariff-losses-worsen-in-another-dow-down-8000-points-from-peak/">carnage</a>&nbsp;across financial markets.</p>



<h2 class="wp-block-heading">Key Facts</h2>



<p>The S&amp;P 500, which follows 500 of the largest public American companies across industries, jumped almost 10% on the day, while the tech-concentrated Nasdaq soared 12% and the blue chip Dow Jones Industrial Average shot up 8%, or about 3,000 points.</p>



<p>Wednesday was a historically great day for stocks, as it marked the best percentage gain for the Dow since March 24, 2020, the S&amp;P since Oct. 28, 2008 and for the Nasdaq since Jan. 3, 2001, according to FactSet data.</p>



<p>It was by far the largest point gain for all three indexes in their five-decade-plus histories.</p>



<p>Trump said Wednesday afternoon he signed a 90-day pause on implementing the more than 10% tariffs on 75-plus countries, sending stocks badly battered by this trade policy soaring.</p>



<p>“BE COOL! Everything is going to work out well,” Trump posted to his Truth Social site shortly after market open, adding “THIS IS A GREAT TIME TO BUY!”</p>



<p>Trump had shown no sign he’d reverse course on the tariffs, encouraging companies to simply move all operations to the U.S. in a morning social media&nbsp;<a href="https://truthsocial.com/@realDonaldTrump/posts/114307832213562859" rel="noreferrer noopener" target="_blank">post</a>, and China dug in further in its resistance to Trump’s more than 100% tariffs on Chinese imports, slapping an&nbsp;<a href="https://www.bloomberg.com/news/articles/2025-04-09/china-raises-tariffs-on-us-goods-to-84-as-trade-rift-escalates" rel="noreferrer noopener" target="_blank">84%</a>&nbsp;levy on U.S. imports to the Asian country.</p>



<h2 class="wp-block-heading">What Stocks Surged The Most In The Tariff Pause Rebound?</h2>



<p>Nearly every stock surged on the tariff relief, as 484 of the S&amp;P’s 500 constituents were in the green, according to FactSet data. Companies considered most vulnerable in a recession benefited the most, as the S&amp;P’s information technology and consumer discretionary sectors jumped 11% and 12%, respectively. The most notable risers included tech giants, as shares of Amazon, Apple, Nvidia, Mera and Tesla all enjoyed more than 10% gains Wednesday. Delta Airlines, Expedia and United Airlines all ranked among the top 30 biggest gainers in the rally as the travel industry received a jolt.</p>



<h2 class="wp-block-heading">Contra</h2>



<p>Tariffs have still wreaked havoc on equity valuations. The Dow is down 10%, or more than 4,000 points, from its December peak, the Nasdaq has lost 15% from its December high and the S&amp;P has fallen 11% from its February high.</p>



<h2 class="wp-block-heading">Chief Critic</h2>



<p>“The tariff clouds parted for the first time today, but it’s too soon to know how sunny the skies will be tomorrow—or 90 days from now,” Daniel Skelly, Morgan Stanley Wealth Management’s head of market research and strategy, wrote in emailed comments.</p>



<h2 class="wp-block-heading">What’s Happening In The Bond Market?</h2>



<p>After strengthening immediately after Trump’s announcement last week as investors fled stocks for assets perceived to be safer, U.S. government bonds joined in on the selloff. Yields for the benchmark 10-year U.S. Treasury note shot up 40 basis points from Monday to Wednesday afternoon, at 4.4%, reversing the initially lower yields<a href="https://www.reuters.com/markets/rates-bonds/us-10-year-yield-wont-dance-bessents-tune-mcgeever-2025-04-08/" rel="noreferrer noopener" target="_blank">&nbsp;celebrated</a>&nbsp;by Trump and Treasury Secretary Scott Bessent as a sign of cheaper borrowing costs to come. It was a “perfect storm of bad news” for U.S. bonds, remarked Lawrence Gillum, LPL Financial’s chief fixed income strategist. “Sticky inflation, a patient Fed, potential foreign buyer boycotts, hedge fund deleveraging, rebalancing out of bonds into cash, and an illiquid Treasury market are all reasons why Treasury yields continue to move higher,” Gillum explained. Higher yields mean less valuable bonds, as fixed income investors demand higher annual payouts to hold onto federal government debt. Yields were little changed amid the equity rally.</p>



<h2 class="wp-block-heading">Jpmorgan Boss Jamie Dimon Warned Of Recession</h2>



<p>A<a href="https://www.forbes.com/sites/dereksaul/2025/04/09/forbes-recession-tracker-recession-odds-spike-as-trumps-tariff-liberation-day-approaches/">&nbsp;recession</a>&nbsp;is the most “likely outcome” for the U.S., JPMorgan Chase CEO Jamie Dimon said in a Wednesday interview with Fox Business’ “Mornings With Maria.” “Markets aren&#8217;t always right, but sometimes they&#8217;re right,” Dimon remarked about the pain seen across asset classes in recent days. “And I think this time they&#8217;re right because they&#8217;re pricing uncertainty at the macro level, uncertainty at the micro level, at the actual company level, and then how it affects consumer sentiment,” Dimon continued. In that interview, Dimon encouraged the Trump administration to lean into strengthening trade with allies in Europe and Asia: “I think the goal of this trade stuff should be to make Europe and our trading partners, Japan, Korea, Philippines, stronger, not weaker. Bring them closer.”</p>


President Trump Signs New Executive Orders At The White House

Stocks Shoot To One Of Biggest Gains Ever As Trump Announces 90-Day Tariff Pause


<p><a href="https://www.forbes.com/"></a></p>



<p><a href="https://www.forbes.com/sites/dereksaul/2025/04/08/stocks-slide-again-as-tariff-losses-worsen-in-another-dow-down-8000-points-from-peak/#open-web-0"></a></p>



<p><a href="https://www.forbes.com/sites/dereksaul/2025/04/08/stocks-slide-again-as-tariff-losses-worsen-in-another-dow-down-8000-points-from-peak/#open-web-0"></a></p>



<h2 class="wp-block-heading" id="h-topline">Topline</h2>



<p>Stocks soared then came down to Earth on Tuesday as investors digested the latest developments in President Donald Trump’s “Liberation Day” trade war, with the markets failing to sustain a recovery from&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2025/04/04/tariffs-cause-another-stock-market-rout-losses-approach-5-trillion-as-dow-plummets-another-2200-points/">historically bad</a>&nbsp;losses over the last week, as China, the world’s second-largest economy,&nbsp;<a href="https://apnews.com/article/china-us-tariffs-trade-trump-b5010acb08114304d8c36267b47eda13" rel="noreferrer noopener" target="_blank">threatens</a>&nbsp;to “fight to the end” with the U.S. over the soaring import duties.</p>



<h2 class="wp-block-heading" id="h-key-facts">Key Facts</h2>



<p>All three major U.S. stock indexes fell further Tuesday, as the Dow Jones Industrial Average slipped 0.8%, or 320 points, the S&amp;P 500 declined 1.6% and the tech-heavy Nasdaq dropped 2.2%.</p>



<p>That was a major reversal from a morning surge, in which the Dow spiked more than 1,400 points and the S&amp;P and Nasdaq jumped about 4% apiece, which would have been the indexes’ steepest respective gains since 2022.</p>



<p>Tuesday’s session mirrored more of a dead cat bounce, in which a financial asset in decline briefly rallies before falling further, rather than a sustained improvement in sentiment, with the lost steam coming after no tangible reversal of the White House’s tariff plans materialized.</p>



<p>The Dow is down 12%, or 5,040 points, since Trump’s wide sweeping tariff announcement last Wednesday, and the S&amp;P and Nasdaq have lost 13% and 14% over the four trading session span, respectively.</p>



<p>Monday’s trading session was similarly rocky, as the S&amp;P bounced between what was as much as a 3.4% daily gain and a 4.5% daily loss before closing with a 0.2% decline.</p>



<p>The S&amp;P narrowly dodged closing in a 20% bear market, ending 18.9% below its Feb. 19 all-time high.</p>



<h2 class="wp-block-heading" id="h-big-number">Big Number</h2>



<p>7,370 points. That’s how much the Dow has dropped from its December closing record through Tuesday, a 16% dive.</p>



<h2 class="wp-block-heading" id="h-surprising-fact">Surprising Fact</h2>



<p>If the S&amp;P does slip into a 20% bear market, this would be the third-fastest such drawdown ever, trailing only 1929’s Great Depression crash and 2020’s brief COVID-19 crash,&nbsp;<a href="https://x.com/bespokeinvest/status/1909695157806547158" rel="noreferrer noopener" target="_blank">according</a>&nbsp;to Bespoke Investment Group.</p>



<h2 class="wp-block-heading" id="h-why-were-stocks-up-this-morning">Why Were Stocks Up This Morning?</h2>



<p>The morning recovery came as Wall Street thirsted for any signs the Trump administration would leave the door open for&nbsp;<a href="https://www.forbes.com/sites/alisondurkee/2025/04/07/will-trump-negotiate-tariffs-president-orders-talks-with-japan-and-says-he-wants-fair-deals-with-other-countries/">negotiations</a>&nbsp;on the tariffs viewed by&nbsp;<a href="https://www.barrons.com/articles/sp500-earnings-tariffs-0b9cf2d2" rel="noreferrer noopener" target="_blank">many</a>&nbsp;to be devastating to corporate earnings. Those signs were led by Treasury Secretary Scott Bessent’s&nbsp;<a href="https://www.youtube.com/watch?v=79wmUgaRCro" rel="noreferrer noopener" target="_blank">comments</a>&nbsp;Tuesday to CNBC’s Squawk Box that he believes “we can end up with some good deals” if other countries come to the table.</p>



<h2 class="wp-block-heading" id="h-trump-heralded-bond-rally-also-lost-steam">Trump-Heralded Bond Rally Also Lost Steam</h2>



<p>Trump has already lost one development he took a&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2025/04/04/trump-shares-claim-hes-crashing-stock-market-on-purpose-as-he-lobbies-for-emergency-rate-cuts/">victory lap</a>&nbsp;on last week. Yields for 10-year U.S. Treasury notes, the benchmark to which many borrowing rates are tied to, climbed about 10 basis points to nearly 4.3%, higher than they stood prior to Liberation Day, up nearly 40 basis points from their Friday low. Higher yields indicate less valuable bonds as investors sour on the idea of holding U.S. government debt, and the rising 10-year signals borrowing costs are not coming down. The 10-year is almost exactly flat from where it stood at Election Day.</p>



<h2 class="wp-block-heading" id="h-what-to-watch-for">What To Watch For</h2>



<p>Trump’s country-by-country tariffs, beyond the 10% universal duties, are scheduled to go into effect at 12:01 a.m. EDT on Wednesday. The White House&nbsp;<a href="https://www.forbes.com/sites/tylerroush/2025/04/07/trump-90-day-tariff-pause-rumor-causes-stock-whipsaw-before-white-house-calls-it-fake-news-heres-what-happened/">called</a>&nbsp;a report it was considering a pause, similar to delays on Canada and Mexico tariffs earlier in Trump’s second term, “fake news,” though billionaire Trump donor Bill Ackman officially&nbsp;<a href="https://x.com/BillAckman/status/1909586890887438817" rel="noreferrer noopener" target="_blank">lobbied</a>&nbsp;for a 30-day or longer pause Tuesday.</p>



<h2 class="wp-block-heading" id="h-china-and-scott-bessent-war-over-who-is-making-mistake">China And Scott Bessent War Over Who Is Making ‘mistake’</h2>



<p>Trump&nbsp;<a href="https://truthsocial.com/@realDonaldTrump/posts/114297331052690348" rel="noreferrer noopener" target="_blank">said</a>&nbsp;Monday he would slap an additional 50% tariff on Chinese imports over the country’s retaliatory tariffs, which the Chinese Commerce Ministry&nbsp;<a href="https://www.bloomberg.com/news/articles/2025-04-08/china-vows-to-fight-to-the-end-if-us-insists-on-new-tariffs" rel="noreferrer noopener" target="_blank">called</a>&nbsp;a “mistake on top of a mistake” that “China will fight to the end.” Bessent, the U.S.’ top economic official,&nbsp;<a href="https://www.cnbc.com/2025/04/08/treasury-secretary-bessent-says-chinas-escalation-was-big-mistake-country-playing-with-losing-hand.html" rel="noreferrer noopener" target="_blank">said</a>&nbsp;Tuesday the Chinese response was a “big mistake” and it’s a “losing hand” for the Asian power to engage in a tariff war.</p>



<p>Breaking News Alerts: Get the latest news straight to your inbox as it happens.Get the latest news on special offers, product updates and content suggestions from Forbes and its affiliates.Sign Up</p>



<h2 class="wp-block-heading" id="h-further-reading">Further Reading</h2>



<p><a href="https://www.forbes.com/sites/dereksaul/2025/04/07/forbes-recession-tracker-recession-odds-spike-as-trumps-tariff-liberation-day-approaches/" target="_blank" rel="noreferrer noopener">ForbesForbes Recession Tracker: Goldman, JPMorgan Say Recession Incoming If Trump Doesn’t Blink On Tariffs<small>By&nbsp;Derek Saul</small></a></p>



<p><a href="https://www.forbes.com/sites/alisondurkee/2025/04/07/will-trump-negotiate-tariffs-president-orders-talks-with-japan-and-says-he-wants-fair-deals-with-other-countries/" target="_blank" rel="noreferrer noopener">ForbesWill Trump Negotiate Tariffs? President Orders Talks With Japan And Says He Wants ‘Fair Deals’ With Other Countries<small>By&nbsp;Alison Durkee</small></a></p>



<figure class="wp-block-image"><img decoding="async" src="https://sync.graph.bluecava.com/ds.png?p=4cb3430d-9dfd-11ef-a5fe-4201ac100015&amp;segment=forbeseval" alt=""/></figure>


Dow Jones Average Falls Steeply, As Investors Doubt Future Interest Rate Cut After Surprise Jobs Report

Stocks Slide Again. The Dow Is Down More Than 7,000 Points From Peak.


<p><strong>Will Trump’s tariffs and his assault on the federal government lead to a deeper crash, or even a recession? Market experts advise long-term investors and 401(k) holders to sit tight.</strong></p>



<p>W<strong>hile the last</strong>&nbsp;three weeks have been punishing for the stock market, veteran wealth managers are sounding a similar refrain for long-term investors: don’t panic.</p>



<p>It can be difficult advice to heed when alarming headlines are regularly flooding the news. Two days after the S&amp;P 500 index hit its all-time high on February 19, hedge fund billionaire Steve Cohen made a prescient prediction that he wouldn’t be surprised to see a “significant correction” in the stock market, calling tariffs an additional tax. On Tuesday this week, JPMorgan economists raised their recession risk forecast for this year to 40% from 30%. The S&amp;P 500 is down 9% from its high and seems destined to fall further.</p>



<p>But history suggests changes in sentiment often happen much faster than investors expect. Just last year, when stocks fell 8.5% over three weeks in July and August, those losses were erased within a month. The same is true of the S&amp;P 500’s last 10% correction, which took place from July to October 2023.</p>



<p>In fact, Dave Donabedian, co-chief investment officer of CIBC Private Wealth U.S., which manages $84 billion in assets, says his firm researched “true crises” far more consequential than the current self-inflicted declines fueled by tariffs—shocks to the system like outbreaks of war or the onset of Covid-19.</p>



<p>“What you find is that about two-thirds of the time, the S&amp;P 500 has recovered all that it lost after the shock in a month,” says Donabedian. “The punch line is don’t do knee-jerk selling, and we’ve certainly had some of those conversations in the last week or so.”</p>



<p>The primary culprit for the current stock market swoon is the uncertainty caused by President Donald Trump’s imposition of tariffs on imports from China, Canada and Mexico. Trump initially announced the tariffs over the weekend prior to February 3, but when the market opened that day down 2%, he changed course and granted Mexico and Canada a temporary 30-day reprieve following concessions they made to secure their borders with the U.S. Stocks quickly rebounded.</p>



<p>That pause expired with Trump allowing the tariffs to take effect on March 4, but he soon carved out exemptions for some goods subject to a trade agreement he signed during his first term. Since then, investors have become increasingly dismayed at Trump’s uncharacteristic indifference to the stock market—last Thursday, he told reporters he’s “not even looking at the market.” This week, he walked back a threat to hike tariffs on Canadian steel and aluminum imports to 50%, but added a 25% charge on those metals shipped from any foreign country, leading to retaliatory tariffs imposed by the European Union on U.S. imports. The whipsawing is only adding to investors’ uneasiness.</p>



<p>“We knew tariffs were negative for economies, but it’s less the impact of the tariffs themselves than the uncertainty of the policy,” says Adrian Helfert, chief investment officer for alternative and multi-asset portfolios at Westwood. “Small and mid-sized businesses need to know what to expect so they can plan their capital expenditures. Uncertainty leads to businesses that are nervous to plan for a future that they don’t know.”</p>



<p>More clarity shouldn’t be particularly hard to provide, and while Donabedian contends it would be “foolish” to make a short-term prediction about whether the next piece of news is better or worse for investors, the perceived risk of the tariffs could peak within the next couple of months. “Our view is still that we get a year of slow growth, but not a recession,” he says.</p>



<p>And there’s reason for optimism elsewhere in the economy. Inflation eased to 2.8% in February, the Bureau of Labor Statistics reported Wednesday, slightly lower than consensus expectations, which improved hopes that the Federal Reserve will cut interest rates this year. The S&amp;P 500 crawled 0.5% higher yesterday, resisting the downward trend and signaling that a broader rebound could be on tap if the tariff issue gets resolved.</p>



<p>The top-performing S&amp;P sector Wednesday was information technology, which gained 1.6% despite being one of the index’s largest laggards of the year, illustrating how quickly trends can reverse. Selling off parts of portfolios that look precarious could backfire if news changes quickly.</p>



<p>“For your average retail investor, the temptation is to say ‘I&#8217;ve got to do something’ during times like this, when the reality is, if you&#8217;re a long term investor, often your best decision is to stay out of your own way,” says Jim Baird, chief investment officer at Plante Moran Financial Advisors. “Unfortunately in this country, we&#8217;ve got far more people that aren&#8217;t saving enough or investing enough in preparation for their retirement than those that are over-saving or over-investing.”</p>



<p>Some strategists even see this as a time to buy into parts of the market that have underperformed if investors do have extra cash. The Russell 2000 index tracking small-cap stocks is down 17% from its post-election high and has hardly budged since the end of 2020, while large caps have enjoyed stronger gains for the last two years.</p>



<p>“If somebody were all in on the S&amp;P 500, I might counsel a little more diversification there, to maybe look at some things in the small- and mid-cap space or look at international, which has finally started to outperform the U.S.,” says Donabedian. Since Trump took office in January, Chinese stocks as measured by MSCI China are up 22%, and MSCI Europe has gained 9%. The S&amp;P 500 is down nearly 7% over the same period. Says Donabedian, “It’s an opportunity to pick some spots in the equity markets that have underperformed for a number of years.”</p>



<figure class="wp-block-image"><img decoding="async" src="https://sync.graph.bluecava.com/ds.png?p=4cb3430d-9dfd-11ef-a5fe-4201ac100015&amp;segment=forbeseval" alt=""/></figure>


Markets Continue Volatile Week As President Trump Changes Tariffs

Calming Advice For A Chaotic Stock Market


<h2 class="wp-block-heading" id="h-topline">Topline</h2>



<p>Top strategists largely expect another year of strong returns for the U.S.’ leading S&amp;P 500 stock index in 2025, according to early prognostications from major banks, a welcome bullish signal for investors already enjoying a historic bull market.</p>



<h2 class="wp-block-heading" id="h-key-facts">Key Facts</h2>



<p><strong>Goldman Sachs:&nbsp;</strong>The investment bank predicted in a Monday note to clients the S&amp;P will end next year at&nbsp;<strong>6,500,</strong>&nbsp;a 10% gain from the index’s roughly 5,900 level Wednesday, not accounting for dividends. It’s a view “predicated on continued U.S. economic expansion” and bolstered by the forecasted 11% earnings per share growth for the 500-company index. Notably, the Goldman group led by David Kostin predicts 2025 will be the slimmest relative outperformance of the “magnificent seven” stocks of the U.S.’ seven largest companies since 2017, reversing a trend of extended market-beating returns from the group led by AI leader Nvidia and iPhone maker Apple.</p>



<p><strong>Morgan Stanley:&nbsp;</strong>The Goldman rival has a matching&nbsp;<strong>6,500</strong>&nbsp;12-month price target for the S&amp;P, the group led by Michael Wilson shared in a Monday note. Morgan Stanley has a balmier 13% EPS growth forecast than Goldman, but shared the potential for “wider than normal” risks to its forecast due to “the potential uncertainty that the recent election outcome introduces.” Wilson set a bull case target of 7,400 for the S&amp;P, implying a potential 26% advance, and a 4,600 bear case target, indicating a possible 28% correction.</p>



<p><strong>UBS:&nbsp;</strong>UBS Global Wealth Management has a&nbsp;<strong>6,600</strong>&nbsp;target for the S&amp;P by the end of 2025, indicating a slightly more bullish 12% gain. The election “likely pulled forward the timing” of the returns associated with optimism from President-elect Donald Trump’s return to the White House in January, wrote Jason Draho, the group’s head of asset allocation, Americas, wrote to clients last week.</p>



<p><strong>BMO Capital Markets:&nbsp;</strong>The Canada-based firm has a&nbsp;<strong>6,700</strong>&nbsp;price target for the S&amp;P, predicting a 14% gain. “Earnings growth is actually understated” and “the train has left the station” with the prospect of further gains as the Federal Reserve further lowers interest rates, BMO’s chief investment strategist Brian Belski&nbsp;<a href="https://www.cnbc.com/video/2024/11/18/bmos-brian-belski-explains-his-2025-year-end-target-of-6700.html" rel="noreferrer noopener" target="_blank">told</a>&nbsp;CNBC on Monday.</p>



<p><strong>Evercore ISI</strong>: The tech-focused boutique bank set a&nbsp;<strong>6,600</strong>&nbsp;target for the S&amp;P by the middle of 2025 following the election. The bull market is “still an infant,”&nbsp;<a href="https://www.marketwatch.com/story/the-bull-market-is-still-an-infant-why-evercore-sees-the-s-p-500-at-6-600-by-mid-2025-c2e80aeb" rel="noreferrer noopener" target="_blank">wrote</a>&nbsp;strategists led by Julian Emanuel. Yet the recent stalling of the post-election stock rally – the S&amp;P is down 2% from last Monday’s record close – indicates the market is in a “digestion phase,” Emanuel&nbsp;<a href="https://www.youtube.com/watch?v=nf_d24Vm-ao" rel="noreferrer noopener" target="_blank">told</a>&nbsp;Bloomberg on Wednesday.</p>



<p><strong>Yardeni Research:&nbsp;</strong>The influential independent research firm led by has a balmy&nbsp;<strong>7,000</strong>&nbsp;target by the end of next year, implying a 19% gain. “Trump 2.0 represents a major regime change that’s bullish for the economy and stocks,” Yardeni wrote last week.</p>



<h2 class="wp-block-heading" id="h-crucial-quote">Crucial Quote</h2>



<p>This is the “highest concentration market in 100 years,” Kostin said in a Wednesday conference call with reporters. “But you look out longer term…the history of a high concentration market is it doesn&#8217;t persist. It eventually fades. You get a broadening of the market.”</p>



<h2 class="wp-block-heading" id="h-contra">Contra</h2>



<p>No surprise considering the often unpredictable nature of financial markets, price targets even from the most trusted names on Wall Street can prove imperfect. Last November, Goldman and Morgan Stanley&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/11/15/heres-where-wall-street-says-sp-500-will-head-next-year-dont-expect-record-highs/">projected</a>&nbsp;the S&amp;P to end 2024 at 4,700 and 4,500, respectively, both more than 20% below Wednesday’s price.</p>



<h2 class="wp-block-heading" id="h-big-number">Big Number</h2>



<p>10,000. That’s where the bullish Yardeni predicts the S&amp;P could climb to 10,000 by the end of 2029, forecasting a strong 16% annualized return.</p>



<h2 class="wp-block-heading" id="h-key-background">Key Background</h2>



<p>Up 23% year-to-date, the S&amp;P is on track to nearly match 2023’s 23% gain. This would be the first time the index rose at least 20% in consecutive years since 1995 to 1998 during the internet boom. The S&amp;P’s 53% gain dating back to the end of 2022 has it on pace for its best two-year gain since the late 1990s. Driving much of the S&amp;P’s recent success, which came in the face of a historically challenging high-rate environment, were big technology stocks, with the likes of Amazon, Meta, Nvidia and Tesla all gaining more than 150% since the end of 2022.</p>


In this photo illustration, A woman browses Yahoo Finance

Will 2025 Bring Similar Cheer For S&P 500? Here’s What Wall Street Expects.


<h2 class="wp-block-heading" id="h-topline">Topline</h2>



<p>Microsoft’s third calendar quarter earnings were the most robust in the company’s five-decade history, though the Washington-based computing colossus indicated it may get less of a bump from the next generation of technological innovation in generative artificial intelligence moving forward.</p>



<h2 class="wp-block-heading" id="h-key-facts">Key Facts</h2>



<p>In its earnings report released Wednesday afternoon, Microsoft reported record $3.30 earnings per share and net income of $24.7 billion, beating average analyst forecasts of $3.10 EPS and $23.2 billion net profit, according to FactSet.</p>



<p>The firm brought in $65.6 billion in revenue for the three-month period ending Sept. 30, besting estimates of $64.6 billion and the prior quarter’s record $64.7 billion.</p>



<p>Sales in Microsoft’s cloud computing service Azure grew 34% year-over-year on a constant currency basis, also crushing projections of 30.7% growth for Azure, the most public-facing generative AI initiative for Microsoft.</p>



<p>But Microsoft shares dipped about 5.5% by 11 a.m. EDT Thursday, reversing an initial gain and pacing toward its worst day on Wall Street since Oct. 2022.</p>



<p>The selloff traces to Microsoft management’s more tepid guidance for the final quarter of 2024, as the company said it expects year-over-year growth for Azure to slow to 31% to 32% and for 18% to 20% growth in its AI-heavy intelligent cloud segment on a constant currency basis, down from 21% in the quarter ending last month, as well as anticipated operating losses from OpenAI, the Microsoft-backed startup behind generative AI chatbot ChatGPT.</p>



<p>The Microsoft stock losses weighed on broader indexes, with the S&amp;P 500 and tech-concentrated Nasdaq each down about 0.7%.</p>



<h2 class="wp-block-heading" id="h-big-number">Big Number</h2>



<p>$180 billion. That’s about how much market capitalization Microsoft lost Thursday morning, roughly the equivalent of Disney’s total valuation.</p>



<h2 class="wp-block-heading" id="h-key-background">Key Background</h2>



<p>Microsoft’s report was the latest in a crowded week for earnings, following Google’s Tuesday release and frontrunning Thursday afternoon reports from fellow tech titans Amazon and Apple. The first quarter of Microsoft’s 2025 fiscal year, this quarter was also the first since Microsoft&nbsp;<a href="https://www.cnbc.com/2024/08/21/microsoft-changes-reporting-to-boost-cloud-consumption-visibility.html" rel="noreferrer noopener" target="_blank">adjusted</a>&nbsp;how it reports its business segment performance, a shuffle analysts say should better&nbsp;<a href="https://www.cnbc.com/2024/08/21/microsoft-changes-reporting-to-boost-cloud-consumption-visibility.html" rel="noreferrer noopener" target="_blank">reflect</a>&nbsp;the competition between Azure and rival enterprise cloud computing service Amazon Web Services. But it’s a change which Bernstein analyst Mark Shmulik predicted may cause “confusion” among investors following this report as expectations recalibrate for Microsoft’s wide-spanning businesses. For example, Microsoft reported $24.1 billion in revenue for its intelligent cloud unit last quarter, a year-over-year decline for that segment despite more than 30% growth for the unit’s signature Azure offering. Microsoft is one of the most profitable companies in the world, with its $88 billion in net income during its most recent fiscal year trailing only Apple and Berkshire Hathaway among U.S. companies. Microsoft stock was up 87% over the last two years through Wednesday’s close, outgaining the S&amp;P 500 and rival Apple at 54% and 50%, respectively, according to FactSet data including reinvested dividends.</p>



<p>.</p>


Microsoft Experience Center Ahead Of Earnings Figures

Microsoft Stock Slips To Worst Day In Years Despite Record Earnings


<h2 class="wp-block-heading" id="h-topline">Topline</h2>



<p>Equities soared globally Thursday as investors absorbed the Federal Reserve’s jumbo interest rate cut, though stocks’ bond market counterpart appears not to be sold on the Fed cut.<strong></strong></p>



<h2 class="wp-block-heading">Key Facts</h2>



<p>Shortly after market open, the Dow Jones Industrial Average rose 1.3% to a new record of 42,105, the S&amp;P 500 rose 1.6% to its new all-time high of 5,713 and the tech-heavy Nasdaq surged 2.3%, though it remains 4% below its July peak.</p>



<p>The rally comes after a choppy Wednesday trading session as Wall Street reacted to the Fed’s cut in real-time, as the Dow and S&amp;P spiked to all-time highs shortly after the Fed’s afternoon decision,&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2024/09/18/stocks-briefly-touch-record-highs-after-fed-opts-for-bigger-interest-rate-cut/">before</a>&nbsp;all three major U.S. indexes closed in the red, even though the central bank opted for the more stock-friendly route of lowering rates by 50, not 25, basis points.</p>



<p>Stocks abroad jumped as well, as Hong Kong’s Hang Seng and Japan’s Nikkei 225 indexes rallied about 2% apiece and Europe’s Stoxx 600 and the U.K’s FTSE 100 indexes both gained about 1%.</p>



<p>A host of big-name stocks soared Thursday morning, with the likes of Apple, Goldman Sachs, Nvidia and Tesla all up more than 2%, while information technology was the S&amp;P’s best-performing sector, rising about 2.5%.</p>



<h2 class="wp-block-heading">Contra</h2>



<p>The bond market has struggled following the rate cut, as the yield for the benchmark 10-year U.S. Treasury note have gained some 10 basis points from its 3.65% level just after the Fed announcement to Thursday’s 3.75%, the highest yield in two weeks. Higher yields indicate lower bond values, and though lower interest rates typically help bonds, the move&nbsp;<a href="https://www.cnbc.com/2024/09/18/us-treasurys-as-investors-look-to-fed-rate-decision.html" rel="noreferrer noopener" target="_blank">reflects</a>&nbsp;fixed income traders’ concerns the Fed&nbsp;<a href="https://www.cnbc.com/2024/09/18/us-treasurys-as-investors-look-to-fed-rate-decision.html" rel="noreferrer noopener" target="_blank">may have</a>&nbsp;acted too aggressively with inflation still above the historic norm, resulting in higher interest rates over the long run. The 10-year yield is still about 15 basis points below where it was at the end of August.</p>



<h2 class="wp-block-heading">Key Background</h2>



<p>The Fed’s decision to lower the federal funds rate from 5.25% to 5.5% to 4.75% to 5% represented its first cut since March 2020. A cut looked all but guaranteed, but the central bank opted for the friendlier route of a 0.5 percentage-point move&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2024/09/06/stocks-have-worst-week-of-year-as-recession-fears-reemerge/">to address</a>&nbsp;slowdown in the labor market and growing angst about an economic downturn. In a Thursday note to clients, Sevens Report founder Tom Essaye described the stock market’s jolt and drop as a“a sell the news” knee jerk reaction. Lower interest rates are almost always seen as a boon for stocks as lower debt financing boosts corporate profit margins,&nbsp;<a href="https://www.wsj.com/livecoverage/fed-interest-rate-cut-inflation-live-09-18-2024/card/has-the-fed-ever-cut-by-50-basis-points-in-peacetime--k0XHxG5caL952yAjvUrm" rel="noreferrer noopener" target="_blank">though</a>&nbsp;if such a move from the Fed fails to stimulate the economy and predates an extended economic slump, as it did in 2007, it would likely bring pain for investors.</p>



<h2 class="wp-block-heading">Further Reading</h2>



<p><a href="https://www.forbes.com/sites/dereksaul/2024/09/18/fed-cuts-interest-rates-for-first-time-in-4-years-heres-what-it-means-for-you/" target="_blank" rel="noreferrer noopener">Forbes<strong>Fed Cuts Interest Rates For First Time In 4 Years: Here’s What It Means For You</strong><small>By&nbsp;<strong>Derek Saul</strong></small></a></p>



<p><a href="https://www.forbes.com/sites/dereksaul/2024/09/18/stocks-briefly-touch-record-highs-after-fed-opts-for-bigger-interest-rate-cut/" target="_blank" rel="noreferrer noopener">Forbes<strong>Stocks Briefly Hit Record Highs After Fed Opts For Big Interest Rate Cut—But Close Negative</strong><small>By&nbsp;<strong>Derek Saul</strong></small></a></p>


Markets Open After Falling More 800 Points On Tuesday

S&P 500, Dow Rise More Than 1% To New Highs In Delayed Rate Cut Rally


<h2 class="wp-block-heading" id="h-topline">Topline</h2>



<p>The Federal Reserve took the&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2024/09/16/fed-once-again-expected-to-make-jumbo-interest-rate-cuts-at-this-weeks-weighty-meeting/">widely expected</a>&nbsp;step Wednesday of announcing its first interest rate cut in years, a move that will have a major impact on the finances of Americans across the board, making borrowing cheaper, though the golden days of high-yield savings instruments may be over.<strong></strong></p>



<h2 class="wp-block-heading" id="h-key-facts">Key Facts</h2>



<p>The Fed’s policy-setting committee cut the federal funds rate by 50 basis points, the more aggressive move as consensus was split between a 25 or 50 basis-point cut.</p>



<p>It’s the first cut to the federal funds rate since March 2020, bringing rates down to 4.75% to 5% from the 5.25% to 5.5% range they’ve sat since last July, the highest rates had been since 2001.</p>



<p>The Fed pivot follows the continued moderation of inflation, which caused rates to spike in the first place.</p>



<h2 class="wp-block-heading" id="h-what-do-fed-rate-cuts-do">What Do Fed Rate Cuts Do?</h2>



<p>The Fed only officially controls the federal funds rate, which determines the interest charged in overnight cash reserve transactions between banks. But the central bank’s rate decisions affect borrowing costs across the board, as lenders typically set rates based upon the Fed-determined range, and rate cuts will more broadly ripple throughout the economy as well. Here are some of the most tangible ways rate cuts will impact everyday Amerians:</p>



<h2 class="wp-block-heading" id="h-housing">Housing</h2>



<p>Mortgages pose perhaps the most obvious jolt for consumers from rate cuts, as mortgage rates are tightly linked to yields for government bonds, which in turn are a reflection of the Fed’s monetary policy. Mortgage rates already&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2024/09/12/mortgage-rates-fall-to-62-lowest-borrowing-costs-since-early-2023/">hit</a>&nbsp;a 19-month low last week of 6.2% on 30-year fixed loans, as brokers braced for the impending rate cuts, and it’s likely the downward descent will continue as the Fed prepares to further cut rates.</p>



<h2 class="wp-block-heading" id="h-car-loans">Car Loans</h2>



<p>Consumer loans will get cheaper with lower Fed rates, including auto loans, which&nbsp;<a href="https://fred.stlouisfed.org/series/TERMCBAUTO48NS" rel="noreferrer noopener" target="_blank">sit now</a>&nbsp;at their most expensive rate since 2001, up from 2021’s sub-5% rate for new car loans to about 8.7%. The cost of other debt like variable-rate private&nbsp;<a href="https://www.bankrate.com/loans/student-loans/how-fed-impacts-student-loans/" rel="noreferrer noopener" target="_blank">student loans</a>&nbsp;and&nbsp;<a href="https://www.axios.com/2024/09/12/fed-interest-rate-cut-credit-card" rel="noreferrer noopener" target="_blank">credit card</a>&nbsp;interest should also come down.</p>



<h2 class="wp-block-heading" id="h-job-market">Job Market</h2>



<p>Companies will also reap the benefits of more accessible credit. Lower rates are typically associated with friendlier hiring as employers’ bottom lines get a boost from cheaper borrowing costs.</p>



<h2 class="wp-block-heading" id="h-savings">Savings</h2>



<p>Perhaps the most materially negative change from rate cuts for Americans’ finances is that the high-yield savings accounts, certificate of deposit accounts and money-market funds, which offered enticing returns for savers over the last two years,&nbsp;<a href="https://www.barrons.com/articles/fed-meeting-september-rate-cut-savings-95db9142" rel="noreferrer noopener" target="_blank">will lose</a>&nbsp;some of their luster. Those are tightly linked to the federal funds rate,&nbsp;<a href="https://www.wsj.com/personal-finance/where-to-put-your-money-when-the-fed-cuts-rates-743e8c66" rel="noreferrer noopener" target="_blank">meaning</a>&nbsp;yields for those accounts will quickly fall as the Fed cuts.</p>



<h2 class="wp-block-heading" id="h-how-rate-cuts-impact-stocks">How Rate Cuts Impact Stocks</h2>



<p>Rate cuts are typically considered a boon for stocks, as money gets pulled away from lower-yielding government bonds and money market funds, leaving investors searching for more enticing returns. The U.S. benchmark S&amp;P 500 stock index has gained 86% of the time in the 12 months after the first rate cut in a cycle dating back to 1929,&nbsp;<a href="https://www.schwab.com/learn/story/what-happens-when-fed-lowers-interest-rates" rel="noreferrer noopener" target="_blank">according</a>&nbsp;to Charles Schwab.</p>



<h2 class="wp-block-heading" id="h-contra">Contra</h2>



<p>Though rates are about to come down, it’s not likely the U.S. will return to the low-rate environment that became the norm. The Fed&nbsp;<a href="https://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20240612.pdf" rel="noreferrer noopener" target="_blank">forecasts</a>&nbsp;a long-term federal funds rate of 2.8%, higher than rates ever were from March 2008 to Sept. 2022, a&nbsp;<a href="https://www.forbes.com/advisor/investing/fed-funds-rate-history/">far ways</a>&nbsp;from the near-zero rates set from Dec. 2008 to Dec. 2015 and March 2020 to March 2022.</p>



<p>.</p>


Finance Calculator

Fed Cuts Interest Rates For First Time In 4 Years: Here’s What It Means For You


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Google parent Alphabet came in above Wall Street’s lofty expectations in its second-quarter earnings report released Tuesday afternoon, as the internet behemoth continues to rake in tens of billions of advertising dollars.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>Alphabet’s $84.7 billion of second-quarter revenue was slightly above average analyst estimates of $84.2 billion, according to FactSet, a 14% year-over-year increase.</p>



<p>The company tallied earnings per share of $1.89, also topping forecasts of $1.84, while its $23.6 billion net income was just shy of Q1’s prior record of $23.7 billion.</p>



<p>Shares of the Silicon Valley kingpin rose slightly immediately after the earnings announcement.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>Alphabet’s report is part of a flurry of second-quarter earnings, with 25% of S&amp;P 500 companies scheduled to report fiscal results this week, according to Bank of America. A digital age conglomerate whose products include leading search engine Google, paid cable alternative YouTube TV, Microsoft Office 365 competitor Google Workspace and generative artificial intelligence chatbot ChatGPT’s rival Gemini, Alphabet is an advertising business at its core. About three-fourths of its Q2 revenues were from ads, including $49 billion from its search business and $9 billion on YouTube ads. Like it has been for many other big tech stocks during the AI boom, it’s been a very nice stretch for Alphabet stock, returning about 50% over the last year and over 100% from its late 2022 low. Alphabet is the fourth-most-valuable company in the world by market value, worth nearly $2.3 trillion as of Tuesday’s stock market closure, trailing only fellow West Coast tech companies Apple, Microsoft and AI golden child Nvidia in market capitalization. Google paid its first ever quarterly cash dividend of $0.20 per share last month.</p>



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



<p>31%. That’s how much higher Alphabet’s second-quarter adjusted earnings per share was than the same period last year. The company is expected to contribute to the fourth-greatest share of profit growth to the S&amp;P,&nbsp;<a href="https://advantage.factset.com/hubfs/Website/Resources%20Section/Research%20Desk/Earnings%20Insight/EarningsInsight_071924.pdf" rel="noreferrer noopener" target="_blank">according</a>&nbsp;to FactSet, trailing only Nvidia, Google Cloud competitor Amazon and advertising foe Meta, the parent company of Facebook and Instagram.</p>



<h2 class="wp-block-heading" id="h-tangent">TANGENT</h2>



<p>Alphabet’s potential <a href="https://www.cbinsights.com/research/google-biggest-acquisitions-infographic/" target="_blank" rel="noreferrer noopener">largest-ever</a> acquisition, a $23 billion purchase of Israeli cybersecurity firm Wiz, <a href="https://www.forbes.com/sites/alexkonrad/2024/07/22/google-is-not-buying-wiz-for-23-billion-after-all/">fell through</a> late Monday after the sides were <a href="https://www.wsj.com/business/deals/google-near-23-billion-deal-for-cybersecurity-startup-wiz-622edf1a?mod=article_inline" target="_blank" rel="noreferrer noopener">reportedly</a> in advanced talks for a deal last week.<a href="https://www.forbes.com/sites/dereksaul/"></a></p>


FRANCE-ECONOMY-TECHNOLOGY-VIVATECH

Google Earnings Top Estimates With $24 Billion Quarterly Profit


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Shares of Spotify rose by about 5% on Monday, after the company announced it will once again raise the prices for its subscription plans in the U.S., following an increase in subscribers.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>Spotify shares rose to over $310 as of 10 a.m. Monday, following an earlier surge in premarket trading.</p>



<p>The music streaming firm&nbsp;<a href="https://newsroom.spotify.com/2024-06-03/adjusting-spotify-premium-prices-in-the-us" rel="noreferrer noopener" target="_blank">said</a>&nbsp;it would raise the monthly prices of its ad-free, premium subscription tiers in the U.S. starting in July: the individual plan will cost $11.99 per month, up from $10.99, the Duo plan increased from $14.99 to $16.99 and the family plan increased by $3 to $19.99 per month.</p>



<p>Spotify will notify customers with premium subscriptions with an email next month, saying its price hikes will allow the company to “invest in and innovate on our product offerings and features and bring users the best experience.”</p>



<h2 class="wp-block-heading" id="h-what-to-watch-for">WHAT TO WATCH FOR</h2>



<p>Spotify is expected to roll out a $11 monthly subscription tier that will offer music and podcasts without audiobooks, requiring users on the plan to pay for audiobooks, Bloomberg&nbsp;<a href="https://www.bloomberg.com/news/articles/2024-04-03/spotify-is-changing-how-it-charges-customers-with-new-plans-and-prices?utm_medium=social&amp;utm_source=twitter&amp;utm_content=business&amp;cmpid=socialflow-twitter-business&amp;utm_campaign=socialflow-organic" rel="noreferrer noopener" target="_blank">reported</a>. Spotify will announce a new “supremium” plan that includes high-fidelity audio at a higher price, though the company has not released details about the plan since being in the works since 2021, sources told Bloomberg.</p>



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



<p>239 million. That’s how many subscribers Spotify&nbsp;<a href="https://s29.q4cdn.com/175625835/files/doc_financials/2024/q1/Q1-2024-Shareholder-Deck-FINAL.pdf" rel="noreferrer noopener" target="_blank">reported</a>&nbsp;in its first quarter this year, an increase of 14% year-over-year.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>Spotify previously announced price hikes for its monthly subscription tiers last year, when it raised its individual subscription price to $10.99. The company now charges more for its premium, ad-free subscriptions than rivals Amazon and Apple, which charge $9.99 and $10.99 for their individual plans, respectively. Additional price hikes followed Spotify&#8217;s announcement that it would offer subscribers 15 hours of audiobooks per month to compete against Amazon’s Audible.</p>



<p>.</p>


Markets Open On Wednesday As Federal Reserve Is Set To Make Latest Rate Increase Announcement

Spotify Shares Jump 5% Ahead Of Subscription Price Hikes


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>The Dow Jones Industrial Average made history Thursday, setting the latest impressive milestone for 2024’s red-hot stock market.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>The Dow crossed 40,000 for the first time in its 128-year history Thursday at about 10:30 a.m. ET, gaining as much as 140 points (0.4%) to a new all-time high of 40,046.21.</p>



<p>The Dow, which tracks 30 of the most valuable U.S. public companies across a gamut of industries, is up 6% this year and 23% from its October bottom, reflecting the positive shift in investor sentiment over the period.</p>



<p>Boosting the Dow on Thursday was retailer Walmart, whose shares rallied 7% to an all-time high after reporting first-quarter earnings.</p>



<h2 class="wp-block-heading" id="h-surprising-fact">SURPRISING FACT</h2>



<p>It took 103 years for the index to top 10,000, set during the dot-com boom in March 1999, another 18 years to cross 20,000, accomplished in Jan. 2017, about 3.5 years to surpass 30,000 in Nov. 2020 and another 3.5 years to eclipse 40,000.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>The Dow differs from the U.S.’ two other leading stock indexes – the S&amp;P 500 and tech-heavy Nasdaq Composite – in its narrow basket of constituent companies and its weighting based on share prices, rather than market capitalization. Both the S&amp;P and the Nasdaq also sit at record highs. The 3.5-year period between the Dow’s first times above 30,000 and 40,000 was a rollercoaster. Stocks crashed in 2022 as high inflation caused the market to brace for higher interest rates, which typically bring down stock prices as investors opt for higher returns on bonds and react to worsened corporate earnings power due to higher borrowing costs. But even as interest rates climbed to a two-decade high, stocks stormed ahead, helped by expanding price-to-earnings valuations thanks to artificial intelligence optimism, companies’ tightening of their belts and expectations of interest rate cuts beginning this year.</p>



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h2>



<p>The Dow’s 40,000 milestone is a “big psychological boost” for investors, Chris Zaccarelli, Independent Advisor Alliance’s chief investment officer, wrote in emailed comments.</p>



<p>.</p>


Dow Crosses 40,000 For First Time In History


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Chevron will acquire Hess Corporation as part of an all-stock transaction valued at $53 billion, the energy giant announced Monday, the second-largest deal by a major oil firm this month since a nearly <a href="https://www.forbes.com/sites/tylerroush/2023/10/11/exxon-mobil-buying-pioneer-natural-resources-for-nearly-60-billion-in-biggest-deal-in-decades/?sh=57b5a955f1ce">$60 billion acquisition</a> by Exxon Mobil nearly 2 weeks ago.</p>



<h2 class="wp-block-heading">KEY FACTS</h2>



<p>The deal values Hess at $171 per share and will provide Hess shareholders with just over 1.02 shares of Chevron for each Hess share at the deal’s closing, according to a&nbsp;<a href="https://www.chevron.com/newsroom/2023/q4/chevron-announces-agreement-to-acquire-hess" target="_blank" rel="noreferrer noopener">joint statement.</a></p>



<p>Chevron will acquire 30% ownership of more than 11 billion barrels of oil equivalent in Guyana, which Hess CEO John Hess called the “world’s largest oil discovery” in the last decade, in addition to 465,000 acres of assets in the Bakken Formation in North Dakota.</p>



<p>With the new assets, Chevron said it expects to increase asset sales and generate $10 billion to $15 billion from the acquisition in before-tax proceeds through 2028.</p>



<p>The deal also includes unspecified “complementary” assets in the Gulf of Mexico and a “steady free cash flow” from natural gas business in Southeast Asia.</p>



<p>Shares for&nbsp;<a href="https://finance.yahoo.com/quote/CVX" target="_blank" rel="noreferrer noopener">Chevron</a>&nbsp;fell over 2% in early market trading on Monday morning, while shares for&nbsp;<a href="https://finance.yahoo.com/quote/HES" target="_blank" rel="noreferrer noopener">Hess</a>&nbsp;fell slightly (0.28%).</p>



<p>Both companies said the deal is expected to close in the first half of 2024, pending approval by regulators and Hess shareholders.</p>



<h2 class="wp-block-heading">CRUCIAL QUOTE</h2>



<p>Peter McNally, an analyst for Third Bridge, said the “real prize” in the deal is Guyana-based assets, where “the country has vaulted into one of the most important growth areas for non-OPEC oil production.&#8221;</p>



<h2 class="wp-block-heading">BIG NUMBER</h2>



<p>Over 1 million. That’s how many barrels of oil equivalent are expected to be produced per day in Guyana by 2026, according to McNally.</p>



<h2 class="wp-block-heading">KEY BACKGROUND</h2>



<p>The Chevron deal follows an announcement earlier this month by&nbsp;<a href="https://www.forbes.com/sites/tylerroush/2023/10/11/exxon-mobil-buying-pioneer-natural-resources-for-nearly-60-billion-in-biggest-deal-in-decades/?utm_source=twitter&amp;utm_medium=social&amp;utm_campaign=forbes&amp;utm_term=se-breaking&amp;sh=6348d9615f1c">Exxon</a>, which said it would acquire Pioneer Natural Resources in a deal valued at $59.5 billion. Both deals come amid U.S. oil and gas production&nbsp;<a href="https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&amp;s=MCRFPUS2&amp;f=M" target="_blank" rel="noreferrer noopener">reaching</a>&nbsp;near all-time highs, though oil companies had challenges acquiring new locations for drilling in recent years. Oil production in Guyana has increased after a net-zero production in 2019 to about 400,000 barrels per day in 2023,&nbsp;<a href="https://www.wsj.com/business/energy-oil/chevron-to-buy-hess-for-53-billion-f1373362" target="_blank" rel="noreferrer noopener">according</a>&nbsp;to the&nbsp;<em>Wall Street Journal</em>. Guyana is expected to become one of the world’s fastest-growing oil developments over the next decade, the&nbsp;<em>Journal&nbsp;</em>reported, as larger oil companies—including Exxon and Cnooc—expand into the country.</p>



<h2 class="wp-block-heading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/tylerroush/2023/10/11/exxon-mobil-buying-pioneer-natural-resources-for-nearly-60-billion-in-biggest-deal-in-decades/?utm_source=twitter&amp;utm_medium=social&amp;utm_campaign=forbes&amp;utm_term=se-breaking&amp;sh=6348d9615f1c">Exxon Mobil Buying Pioneer Natural Resources For Nearly $60 Billion—In Biggest Deal In Decades</a>&nbsp;(<em>Forbes</em>)</p>



<p><a href="https://apnews.com/article/chevron-hess-exxon-oil-merger-acquisition-37ff382d6fa713b7a1e887c7be5f1e93" target="_blank" rel="noreferrer noopener">Chevron Buys Hess For $53 Billion, 2nd Buyout Among Major Producers This Month As Oil Prices Surge</a>&nbsp;(<em>Associated Press</em>)</p>



<p><a href="https://www.reuters.com/markets/deals/chevron-buy-hess-corp-53-bln-stock-2023-10-23/" target="_blank" rel="noreferrer noopener">Chevron To Buy Hess Corp For $53 Billion In All-Stock Deal</a>&nbsp;(<em>Reuters</em>)</p>


Chevron Posts Near Record Profits, Exceeding Market Expectations

Chevron Buying Hess For $53 Billion In Latest Major Oil Deal


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Shares for Netflix rose by over 15% on Thursday, the largest single-day gain for the firm in nearly three years, after the streaming service reported growth that exceeded analyst expectations, and price increases.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>Netflix shares rose by 15.92% to $401.30 as of Thursday morning, following a more than&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/10/18/netflix-earnings-subscribers-swell-to-record-247-million-as-stock-soars/?sh=5f4a761f64df">10% jump</a>&nbsp;to over $390 after the company released its third-quarter earnings report on Wednesday.</p>



<p>This is the largest single-day gain for Netflix since January 20, 2021, when shares rose by 16.86% to $586.34 after the company&nbsp;<a href="https://s22.q4cdn.com/959853165/files/doc_financials/2020/q4/FINAL-Q420-Shareholder-Letter.pdf" target="_blank" rel="noreferrer noopener">reported</a>&nbsp;it had eclipsed the 200 million subscriber mark and announced it was considered stock buybacks.</p>



<p>Netflix added $8.54 billion in revenue and nine million net paid subscribers through a three-month period ending September 30, matching and exceeding estimates of $8.54 billion and 6.08 million, respectively.</p>



<p>A letter to shareholders on Wednesday also indicated Netflix was raising the price of its basic and premium plans to $11.99 and $22.99, up $3 and $2, respectively, as part of an effort to be competitive with other streaming services, including Amazon Prime Video, Disney+ and Paramount+.</p>



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



<p>247.2 million. That’s how many global paid subscribers Netflix has, according to its latest earnings report.</p>



<h2 class="wp-block-heading" id="h-surprising-fact">SURPRISING FACT</h2>



<p>Prior to the nearly 17% single-day gain for Netflix in 2021, the previous high for the streaming firm was a gain of 16.8% on October 18, 2016. The increase followed an announcement from Wells Fargo, which upgraded its price target for Netflix shares to $700 per share, up from $510, adding to similar announcements from other analysts, according to&nbsp;<a href="https://www.cnbc.com/2021/01/20/netflix-stock-soars-13percent-on-subscriber-growth-and-possible-buybacks.html" target="_blank" rel="noreferrer noopener">CNBC</a>.</p>



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<p>By signing up, you accept and agree to our&nbsp;<a href="https://www.forbes.com/terms-and-conditions" target="_blank" rel="noreferrer noopener">Terms of Service</a>&nbsp;(including the class action waiver and arbitration provisions), and you acknowledge our&nbsp;<a href="https://www.forbes.com/privacy" target="_blank" rel="noreferrer noopener">Privacy Statement</a>.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>Netflix reported earnings up to $3.73 a share on Wednesday, as chief executive Greg Peters said the firm was “incredibly pleased” with its recent growth, according to&nbsp;<a href="https://www.bloomberg.com/news/articles/2023-10-18/netflix-will-raise-prices-after-best-subscriber-growth-in-years?utm_content=business&amp;utm_campaign=socialflow-organic&amp;cmpid=socialflow-twitter-business&amp;utm_source=twitter&amp;utm_medium=social" target="_blank" rel="noreferrer noopener">Bloomberg</a>. Shares for the company have jumped by nearly 36% this year, and by just over 47% since October 2022. The stock crashed about 75% in the first half of 2022, after Netflix&nbsp;<a href="https://www.forbes.com/sites/sergeiklebnikov/2022/04/19/netflix-shares-plunge-over-20-after-company-says-it-lost-subscribers-for-the-first-time-in-10-years/?sh=77df0caa1650">reported</a>&nbsp;its first loss of subscribers in a decade. Netflix has continued to report subscriber growth, after announcing a crackdown on password sharing and a cheaper subscription tier that includes ads. The company also added a paid sharing option—requiring users to pay extra for accounts they share with others—that was called a “primary revenue accelerator in the year” by chief financial officer Spencer Neumann.</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/antoniopequenoiv/2023/10/18/netflix-hikes-prices-for-some-plans-as-subscriber-numbers-surge/?sh=73f2ded756e0">Netflix Hikes Prices For Some Plans As Subscriber Numbers Surge</a>&nbsp;(<em>Forbes</em>)</p>



<p><a href="https://www.forbes.com/sites/dereksaul/2023/10/18/netflix-earnings-subscribers-swell-to-record-247-million-as-stock-soars/?sh=5f4a761f64df">Netflix Earnings: Subscribers Swell To Record 247 Million As Stock Soars</a> (<em>Forbes</em>)</p>


In this photo illustration the Netflix logo seen displayed

Netflix Shares Surge 15% After Subscriber Growth—Largest Single-Day Gain Since 2021


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Global oil demand reached record levels in June and is poised to peak again in August, the International Energy Agency&nbsp;<a href="https://www.iea.org/reports/oil-market-report-august-2023" target="_blank" rel="noreferrer noopener">said</a>&nbsp;on Friday, warning that price hikes could be on the horizon as slowing outputs from major suppliers like Saudi Arabia tighten supply.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>World oil demand hit a record 103 million barrels a day in June, the IEA said.</p>



<p>The agency said demand could rise further in August and demand for 2023 as a whole is expected to reach 102.2 million barrels a day.</p>



<p>The figure, an increase of around 2.2 million barrels a day from the year before, would mark the highest ever annual level, the agency said.</p>



<p>China is responsible for the lion’s share of this growth, accounting for more than 70% of the uptick, the IEA said, adding that demand there was “stronger than expected” and reached new highs “despite persistent concerns over the health of the economy.”</p>



<p>Strong summer air travel and the increased use of oil in power generation also contributed to increased demand, the IEA said.</p>



<p>The IEA forecast continued, albeit slower, growth for oil demand in 2024, pointing to “lacklustre economic conditions,” new electric vehicles and the “post-pandemic rebound running out of steam.”</p>



<h2 class="wp-block-heading" id="h-what-to-watch-for">WHAT TO WATCH FOR</h2>



<p>Oil prices could be poised to rise even higher in coming months as major producers, particularly Saudi Arabia, move to constrict supplies. Previous production cuts from the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have helped&nbsp;<a href="https://www.reuters.com/markets/commodities/oil-benchmark-brents-price-structure-reflects-tighter-market-2023-08-10/" target="_blank" rel="noreferrer noopener">drive</a>&nbsp;oil prices up and the IEA warns the bloc’s targets, if maintained, pose “a risk of driving prices still higher.”</p>



<h2 class="wp-block-heading" id="h-tangent">TANGENT</h2>



<p>The IEA said Russia’s oil exports breached the price cap put in place by the Group of Seven (G7) nations. Prices reached an average of $64.41 a barrel last month, the IEA said, above the $60 a barrel cap the group set. The cap was designed to limit Moscow’s ability to fund its war in Ukraine while simultaneously averting chaos in global energy markets by keeping its oil on the markets and it limits how companies can move Russian oil by cutting access to things like insurance and other key services should they pay more than this threshold. The rule has changed the map of global oil supply chains and exports from Russia, a major producer, away from Europe and towards Asia. The IEA said crude exports to India and China accounted for 80% of Russia’s shipments.</p>



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<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>While oil demand dropped during the Covid-19 pandemic and as the world shifted to greener forms of energy, supplies have also tightened from output cuts and disruption from Russia’s invasion of Ukraine. The recent squeeze, spearheaded by Saudi Arabia’s voluntary production cuts, have helped push prices up and Brent crude, a key international benchmark, was trading at $88 dollars a barrel on Thursday, a six month&nbsp;<a href="https://www.reuters.com/markets/commodities/iea-lowers-2024-oil-demand-growth-forecast-2023-08-11/" target="_blank" rel="noreferrer noopener">high</a>.</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/roberthart/2023/07/19/electricity-demand-slows-in-2023-as-economic-downturn-and-energy-crisis-weighs-on-growth-iea-says/">Electricity Demand Slows In 2023 As Economic Downturn And Energy Crisis Weighs On Growth, IEA Says</a>&nbsp;(Forbes)</p>



<p><a href="https://www.bloomberg.com/news/articles/2023-08-11/global-oil-demand-hits-record-and-prices-may-climb-iea-says" target="_blank" rel="noreferrer noopener">Global Oil Demand Hits Record and Prices May Climb, IEA Says</a>&nbsp;(Bloomberg)</p>



<p><a href="https://www.reuters.com/markets/commodities/iea-lowers-2024-oil-demand-growth-forecast-2023-08-11/" target="_blank" rel="noreferrer noopener">IEA sees slower 2024 oil demand growth, tightening market this year</a>&nbsp;(Reuters)</p>



<p><a href="https://www.bbc.com/future/article/20230726-an-experts-guide-to-peak-oil-and-what-it-really-means" target="_blank" rel="noreferrer noopener">Is the decline of oil in sight?</a> (BBC)<a href="https://www.forbes.com/sites/roberthart/"></a></p>


Oil pump with candle stick graph chart in the background. World Oil Industry

Oil Prices Poised To Soar As Global Demand Hits Record High, IEA Says


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Several large technology stocks soared Friday to their highest level this year as blockbuster earnings and uplifting economic data kept the blistering stock market’s momentum going.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>Shares of Alphabet (up 3%), Meta (up 4%) and Intel (up 6%) each set 2023 highs as investors digested the Silicon Valley firms’ earnings reports earlier this week with a smile.</p>



<p>Airbnb, DoorDash, DraftKings, Intuit and Roku also rallied to their highest share price of the year Friday, gaining 3% or more.</p>



<p>In addition to earnings, Friday’s release of the personal consumption expenditures inflation metric helped boost stocks, as it revealed price increases&nbsp;<a href="https://www.cnbc.com/2023/07/28/pce-inflation-june-2023-.html" target="_blank" rel="noreferrer noopener">moderated</a>&nbsp;to their lowest level in about two years last month.</p>



<p>The tech-heavy Nasdaq notched a 2% gain by late afternoon, while the Dow Jones Industrial Average and S&amp;P 500 rose roughly 1% apiece.</p>



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h2>



<p><a href="https://www.forbes.com/sites/dereksaul/2023/07/27/us-economic-grew-better-than-expected-24-during-second-quarter-again-defying-recession-fears/">Strong</a>&nbsp;economic output growth, a “better-than-expected” earnings season and moderating inflation “could be the catalyst to send the market to new highs,” Bolvin Wealth Management president Gina Bolvin wrote in emailed comments Friday.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>The stock market’s strong week came even as the Federal Reserve&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/07/26/fed-hikes-interest-rates-by-25-basis-points-to-highest-level-since-2001/?sh=335986b93892">bumped</a>&nbsp;interest rates to a 22-year high Wednesday. Equity prices historically fall in periods of higher rates as it makes corporate borrowing more expensive and thus cuts into profits, but investors have supported the notion that artificial intelligence-driven growth and a renewed commitment to cost-cutting will prop up long-term growth.</p>



<h2 class="wp-block-heading" id="h-surprising-fact">SURPRISING FACT</h2>



<p>The Dow’s 13-day winning streak came to an end Thursday, capping the longest positive stretch in 36 years. The Dow is up 7% over the last two months, its best two-month since last October and November.</p>



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<h2 class="wp-block-heading" id="h-contra">CONTRA</h2>



<p>Energy giants Chevron and Exxon did not join in on the fun Friday, as their stocks slid roughly 1% apiece after both companies&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/07/28/exxon-and-chevron-profits-plunge-to-pre-ukraine-war-levels-as-oil-price-decline-continues/?sh=483fb0fd516a">reported</a>&nbsp;a roughly 50% year-over-year decline in profits. Energy is one of three S&amp;P sectors down year to date and is the&nbsp;<a href="https://digital.fidelity.com/prgw/digital/research/sector" target="_blank" rel="noreferrer noopener">worst returner</a>&nbsp;of the index’s 13 sectors over the last five years.</p>



<h2 class="wp-block-heading" id="h-what-to-watch-for">WHAT TO WATCH FOR</h2>



<p>Apple, the world’s most valuable company, reports quarterly numbers Thursday. Other notable earnings next week include Pfizer, one of the&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/07/03/worst-stocks-of-2023s-first-half-battered-banks-and-vaccine-makers/">worst-performing stocks</a>&nbsp;of the year as Covid-19 vaccine demand dwindles, and Anheuser-Busch, whose shares are&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/05/31/anheuser-busch-stock-enters-bear-territory-amid-anti-trans-bud-light-backlash/">down about 10%</a>&nbsp;over the last three months as Bud Light sales dwindled amid controversy.</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/dereksaul/2023/07/26/alphabet-stock-rides-earnings-to-15-month-high-heres-why-some-analysts-expect-it-to-surge-nearly-30-more/?sh=775951e6a87c">Alphabet Stock Rides Earnings To 15-Month High—Here&#8217;s Why Some Analysts Expect It To Surge Nearly 30% More</a>&nbsp;(<em>Forbes</em>)</p>



<p><a href="https://www.forbes.com/sites/dereksaul/2023/07/26/meta-earnings-stock-rallies-as-facebook-parent-notches-most-profitable-quarter-since-2021/?sh=62656f6550fd">Meta Earnings: Stock Rallies As Facebook Parent Notches Most Profitable Quarter Since 2021</a>&nbsp;(<em>Forbes</em>)</p>



<p><a href="https://www.forbes.com/sites/dereksaul/2023/07/25/microsoft-earnings-ai-lifts-redmond-to-highest-quarterly-sales-ever/?sh=2a958ed04cb8">Microsoft Earnings: AI Lifts Redmond To Highest Quarterly Sales Ever</a> (<em>Forbes</em>)</p>


These Stocks Hit 2023 Highs As Dow Heads For Best 2-Month Stretch Since November


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Hundreds of Airbus jets are being recalled for an inspection after an issue was discovered in the engines, which are made by Pratt &amp; Whitney, a third party subsidiary of RTX (formerly called Raytheon Technologies), according to&nbsp;<a href="https://www.reuters.com/business/aerospace-defense/rtx-raises-2023-sales-outlook-boosted-by-aviation-recovery-2023-07-25/" target="_blank" rel="noreferrer noopener">multiple</a>&nbsp;<a href="https://www.wsj.com/articles/new-engines-on-hundreds-of-airbus-jets-recalled-for-inspection-ab206106?mod=hp_lead_pos2" target="_blank" rel="noreferrer noopener">reports</a>—the latest in a series of reliability issues with Pratt &amp; Whitney’s flagship engine.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>RTX reportedly said it recently discovered contamination in the metals used to make some engine parts on its geared turbofan engine, or GTF, from 2015 to 2020, requiring the planes to be grounded for inspection.</p>



<p>RTX will be inspecting about 1,200 engines over the next year.</p>



<p>RTX said this isn’t a flight safety issue, and that it won’t impact new shipments of planes as those were built after a change in the production process.</p>



<p>The engines are used in about 40% of Airbus’ A320neo single-aisle jets, which make up a large portion of the global airplane fleet and was the fastest selling airplane in history after its launch in 2014, according to&nbsp;<a href="https://www.bloomberg.com/news/articles/2014-10-15/airbus-wins-accord-from-india-s-indigo-for-250-a320neo-airliners" target="_blank" rel="noreferrer noopener">Bloomberg</a>.</p>



<p>Spirit Airlines, JetBlue Airways, Germany’s Lufthansa and India’s IndiGo all reportedly use Airbus jets with the GTF engine.</p>



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h2>



<p>“It’s going to be expensive,” RTX CEO Greg Hayes said Tuesday on an earnings call, adding that it’s too early to know the final cost, but said it will likely cost around $500 million in 2023 alone.</p>



<h2 class="wp-block-heading" id="h-tangent">TANGENT</h2>



<p>Raytheon Technologies’ stock price plummeted over 15% after the news, but slightly recovered later in the trading day Tuesday. The share price sat at $85.77 at 2:55 p.m. Eastern Time—still down nearly 12% from Monday’s close.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>The GTF engine has had reliability issues since it hit the market in 2015, with airlines complaining about the engine’s durability issues virtually from the start. Hawaiian Airlines was recently forced to ground five of its 18 Airbus A321neos due to engine issues,&nbsp;<a href="https://aviationweek.com/mro/aircraft-propulsion/mro-memo-operators-feel-impact-gtf-issues" target="_blank" rel="noreferrer noopener"><em>Aviation Week</em>&nbsp;reported</a>. Spirit Airlines CFO Scott Haralson recently said in an earnings call that the company has been forced to remove many of the engines, and that while it’s hopeful these issues improve, “it will likely remain a drag on utilization for the rest of the year.” Go Airlines India has gone so far as to blame the engines for its bankruptcy in May,&nbsp;<a href="https://www.bloomberg.com/news/articles/2023-05-02/go-airlines-files-for-insolvency-after-25-aircraft-were-grounded" target="_blank" rel="noreferrer noopener">citing</a>&nbsp;that the engines “suffered from a multitude of defects and a high rate of failure effectively from day one.” (Pratt &amp; Whitney deny responsibility for Go Airlines India’s bankruptcy.)&nbsp;<a href="https://www.bloomberg.com/news/articles/2023-06-16/pratt-s-gtf-engines-for-airbus-a320neo-hit-turbulence" target="_blank" rel="noreferrer noopener">Bloomberg reported</a>&nbsp;that in May, about one in eight A320neos and related aircraft with the GTF spent 30 days or more in storage. While that number includes airplanes that were taken out of service for any reason, only 4% of airplanes using the rival Leap engine from CFM were sidelined for 30 days or more.</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/jeremybogaisky/2018/07/12/pratt-whitney-geared-turbofan-united-technologies/?sh=a4bd7e2b7007">Pratt &amp; Whitney Struggles To Get Its Dream Engine Program Humming</a>&nbsp;(Forbes)</p>



<p><a href="https://www.wsj.com/articles/new-engines-on-hundreds-of-airbus-jets-recalled-for-inspection-ab206106?mod=hp_lead_pos2" target="_blank" rel="noreferrer noopener">New Engines on Hundreds of Airbus Jets Recalled for Inspection</a>&nbsp;(Wall Street Journal)</p>



<p><a href="https://www.bloomberg.com/news/articles/2023-06-16/pratt-s-gtf-engines-for-airbus-a320neo-hit-turbulence" target="_blank" rel="noreferrer noopener">Airlines Are Rankled About Pratt &amp; Whitney’s Jet Engine Problems</a> (Bloomberg)</p>


ITA Airways Unveil New Airport Lounge And Aircraft At Fiumicino

Hundreds Of RTX-Made Jet Engines Recalled Over Metal Contamination—Sending Stock Tumbling


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Streaming giant Netflix quietly eliminated its cheapest advertisement-free plan for new U.S. and U.K. customers this month, pushing new users toward either a more expensive monthly plan or a cheaper offer with ads, the latest streaming platform to adjust its pricing.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>Netflix’s changes, which do not affect existing customers, leave new customers with the&nbsp;<a href="https://help.netflix.com/en/node/24926" target="_blank" rel="noreferrer noopener">choice of</a>&nbsp;a $6.99 per month “Standard with Ads” plan—the cheapest Netflix offers—as well as a $15.49 “Standard” plan, which allows for two simultaneous streams and 1080p full HD video quality, or a $19.99 “Premium” plan, with up to four simultaneous streams and 4K Ultra HD video.</p>



<p>The company eliminated its $9.99-a-month “Basic” plan and now&nbsp;<a href="https://help.netflix.com/en/node/24926/gb" target="_blank" rel="noreferrer noopener">states</a>&nbsp;on its support page it “is no longer available for new or rejoining members,” a change multiple news outlets spotted Wednesday—as of July 5, the streaming giant still listed the basic subscription tier on its U.S. support site, according to an&nbsp;<a href="https://web.archive.org/web/20230705193321/https://help.netflix.com/en/node/24926" target="_blank" rel="noreferrer noopener">archived version</a>&nbsp;of the webpage.</p>



<p>Under Netflix’s “Standard” plan, customers can opt to pay up to $23.48 a month for an extra member, while Premium users can pay $27.98 per month for one extra member or $35.97 for two.</p>



<p>The platform’s decision to cut its “Basic” plan comes one month after it cut the same offering for customers in Canada, and in the same fashion allows existing customers to stay on the plan.</p>



<h2 class="wp-block-heading" id="h-tangent">TANGENT</h2>



<p>The change puts Netflix, a stalwart in the decade-long streaming wars, roughly on par with Disney-controlled rivals Hulu ($7.99 per month with ads, or $14.99 ad-free) and Disney+ ($7.99 with ads and $10.99 ad-free). Warner Bros. Discovery’s platform Max, which&nbsp;<a href="https://www.forbes.com/sites/katherinehamilton/2023/04/12/new-max-streaming-service-combines-hbo-and-discovery-shows-heres-what-you-need-to-know/?sh=6a11dfa037c8">launched</a>&nbsp;this spring as a mega-service combining HBO Max and Discovery+, offers monthly subscriptions starting slightly higher, at $9.99 per month with ads and $15.99 without them, and $19.99 per month for “Ultimate Ad Free,” which allows for up to four simultaneous streams. Some legacy broadcasters have cheaper services: NBCUniversal’s Peacock and CBS owner Paramount Global’s Paramount+ both charge $5.99 per month with ads or $11.99 per month without (in Paramount’s case, the ad-free service includes SHOWTIME). And Amazon Prime Video costs $8.99 a month, but it’s included in a $14.99 Amazon Prime membership.</p>



<h2 class="wp-block-heading" id="h-news-peg">NEWS PEG</h2>



<p>Netflix’s price change follows a series of price hikes by rival streaming services, including Peacock, which announced plans on Tuesday to&nbsp;<a href="https://www.forbes.com/sites/anafaguy/2023/07/18/peacock-raises-its-rates-heres-how-it-compares-to-rivals-netflix-paramount-and-more/?sh=26e692db19c5">raise rates</a>&nbsp;from $4.99 per month to $5.99. The price for ad-free “Premium” subscribers is set to increase next month from $9.99 per month to $11.99, while Peacock’s annual premium plan will jump $10 per year to $59.99. Peacock ended its free streaming tier earlier this year.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>Netflix, as well as Max and Disney+, have raised rates in recent months and launched cheaper ad-based subscription options for customers, in a bid to boost revenue in a challenging era and remain competitive with more price-sensitive customers. Netflix’s rate of subscriber growth stalled in the first half of 2022 after two consecutive quarters of declining memberships, spooking investors, though the company ended the year with more subscribers. Meanwhile, rivals like Disney+ remain unprofitable. Despite previously swearing off ads on his streaming service, Netflix co-founder and former co-CEO Reed Hastings&nbsp;<a href="https://www.theverge.com/2022/4/19/23032869/netflix-ads-streaming-reed-hastings-lower-price" target="_blank" rel="noreferrer noopener">said</a>&nbsp;in an earnings call last April he would be “quite open” to low-cost streaming tiers with ads. Last year, Netflix also&nbsp;<a href="https://www.forbes.com/sites/siladityaray/2022/08/12/heres-how-much-more-you-have-to-pay-for-streaming-services-compared-to-last-year/?sh=714d2a1f6dfe">raised prices</a>&nbsp;for its streaming tiers by between $1 and $2 per month, bringing the basic option to $9.99 from $8.99 and its premium option to $19.99 from $17.99. Netflix has also cracked down on password sharing, a well-known secret the platform had once promoted, imposing restrictions in Canada, New Zealand and Spain, and announcing plans in May to prohibit U.S. customers from sharing accounts with people they don’t live with. In October, Netflix boasted&nbsp;<a href="https://www.forbes.com/sites/marisadellatto/2022/10/18/netflix-adds-24-million-subscribers-after-months-of-declines/?sh=5211728577be">2.4 million</a>&nbsp;new paid subscribers over the prior quarter, bringing its total subscribers to 230.75 million after months of decline, putting it above Disney+ (161.8 million), Paramount+ (56 million), Hulu (48 million) and Peacock (20 million).</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/anafaguy/2023/07/18/peacock-raises-its-rates-heres-how-it-compares-to-rivals-netflix-paramount-and-more/?sh=26e692db19c5">Peacock Raises Its Rates: Here’s How It Compares To Rivals Netflix, Paramount+ And More</a>&nbsp;(Forbes)</p>



<p><a href="https://www.forbes.com/sites/anafaguy/2023/05/23/netflix-starts-long-awaited-password-sharing-crackdown-heres-how/?sh=79780274f884">Netflix Starts Long-Awaited Password-Sharing Crackdown—Here’s How</a> (Forbes)</p>


Netflix

Netflix Scraps Cheapest Ad-Free Plan Amid Streaming Wars—Here’s How It Stacks Up With Hulu, Max, Disney+


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>High-profile collapses in bank stocks and losses for major healthcare and energy companies headlined the biggest names losing out on 2023’s broader market rally.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>Banking turmoil was behind much of the market’s less fortunate spots; investors in&nbsp;<strong>First Republic, Signature&nbsp;</strong>and&nbsp;<strong>Silicon Valley Bank&nbsp;</strong>saw their investments turn to dust earlier this year after they&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/05/01/first-republic-bank-failure-a-timeline-of-what-led-to-the-second-largest-bank-collapse-in-us-history/">became</a>&nbsp;three of the four largest American banks to ever fail, with each subsequently losing their spots on the S&amp;P 500<strong>.</strong></p>



<p>Still, 19 of the S&amp;P’s 50 worst performers year-to-date are financial services stocks, including slumping but still alive regional banks&nbsp;<strong>KeyCorp</strong>&nbsp;(down 45%) and&nbsp;<strong>Zions</strong>&nbsp;(down 43%), the second and third-worst performers on the S&amp;P, respectively.</p>



<p>Broadly, the S&amp;P’s financial sector is down 2% year-to-date, making it the worst-performing sector, followed by energy (down 8%), utilities (8%) and healthcare (3%).</p>



<p>Pharmaceutical giant&nbsp;<strong>Pfizer</strong>&nbsp;(down 27%) is the worst-performing stock with a market capitalization over $200 billion&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/01/31/pfizer-expects-covid-vaccine-and-pill-revenues-will-fall-60-in-2023/">due in part</a>&nbsp;to a decline in Covid-19 vaccine sales; vaccine rival&nbsp;<strong>Moderna</strong>&nbsp;is similarly down 33%.</p>



<p>Overall, <strong>Advance Auto Parts</strong> (down 51%) is the S&amp;P’s worst performer of 2023 after it fell <a href="https://www.forbes.com/sites/jonathanponciano/2023/05/31/retailer-stock-crash-signals-potential-price-wars-looming/?sh=7e3012546997">far short</a> on its first quarter earnings estimates as profits dwindled due to price cuts.</p>


<div class="wp-block-image">
<figure class="aligncenter size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.forbesafrica.com/wp-content/uploads/2023/07/fornes-1024x451.jpg" alt="" class="wp-image-58720" width="750" height="329" srcset="https://cms.forbesafrica.com/wp-content/uploads/2023/07/fornes-1024x451.jpg 1024w, https://cms.forbesafrica.com/wp-content/uploads/2023/07/fornes-300x132.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2023/07/fornes-768x338.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2023/07/fornes-1536x676.jpg 1536w, https://cms.forbesafrica.com/wp-content/uploads/2023/07/fornes.jpg 1897w" sizes="auto, (max-width: 750px) 100vw, 750px" /></figure></div>


<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>The slump in energy, healthcare and utility stocks follows a year in which the three sectors were the only positive returners on the S&amp;P. The energy sector gained 66% in 2022 as soaring oil and commodity prices led to record profits at oil and gas giants like Chevron and Exxon, whose shares each touched all-time highs last year. But the well’s run dry for the sector thus far this year as energy prices stabilized. Pfizer and Moderna’s combined market capitalization is down some $260 billion from September 2021 as each reported 30% and 70% annual declines in revenue during 2023’s first quarter and forecasted further pain as the pandemic subsides.</p>



<h2 class="wp-block-heading" id="h-crucial-quotes">CRUCIAL QUOTES</h2>



<p>Small and mid-sized banks “will have a very difficult time moving forward,” Wells Fargo Investment Institute Sameer Samana said on a conference call last month, putting a sell rating for the regional banking stocks even after they plunged following prior failures. “It’s not just a 30-day flash in the pan and you go merrily into the night, this crisis could take 12-18 months to play out” and possibly claim more banks, Samana’s colleague Darrell Cronk added.</p>



<h2 class="wp-block-heading" id="h-tangent">TANGENT</h2>



<p>Outside the S&amp;P, retailer&nbsp;<strong>Walgreens</strong>&nbsp;(down 24%) is the worst performer on the Dow Jones Industrial Average as the pharmacy&nbsp;<a href="https://investor.walgreensbootsalliance.com/news-and-events/financial-news/financial-news-details/2023/Walgreens-Boots-Alliance-Reports-Fiscal-2023-Third-Quarter-Results/default.aspx" target="_blank" rel="noreferrer noopener">reported</a>&nbsp;a steep decline in Covid-related revenues, and Chinese retailer&nbsp;<strong>JD.com</strong>&nbsp;(down 39%) is the Nasdaq’s biggest loser as concerns about China’s economic recovery mounted.</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="http://www.forbes.com/sites/dereksaul/2023/06/30/best-stocks-of-2023s-first-half-nvidia-leads-big-tech-renaissance/">Best Stocks Of 2023’s First Half: Nvidia Leads Big Tech Renaissance</a> (<em>Forbes</em>)<a href="https://www.forbes.com/sites/dereksaul/"></a></p>


Citigroup Inc. Plots New Trading Floor With Plans to Double Staff in Paris

Worst Stocks Of 2023’s First Half: Battered Banks And Vaccine Makers


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Fast fashion retailer Shein shot down a Thursday report from&nbsp;<a href="https://www.reuters.com/business/retail-consumer/chinas-shein-files-us-ipo-sources-2023-06-29/?taid=649dc58f25570b0001e072d2&amp;utm_campaign=trueAnthem:+Trending+Content&amp;utm_medium=trueAnthem&amp;utm_source=twitter" target="_blank" rel="noreferrer noopener">Reuters</a>&nbsp;that claimed it confidentially registered with regulators for a U.S. initial public offering, in what would be a highly controversial listing in the U.S. given controversy around the brand’s labor practices.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>Shein told&nbsp;<em>Forbes</em>&nbsp;in an email that it denied “rumors” around the Reuters story, which reported the company had filed for an IPO with the Securities and Exchange Commission.</p>



<p>The company, which has been surrounded by&nbsp;<a href="https://time.com/6247732/shein-climate-change-labor-fashion/" target="_blank" rel="noreferrer noopener">controversy</a>&nbsp;over allegations of using forced labor, could have been the most valuable Chinese company to go public in the U.S., according to Reuters.</p>



<p>Shein was valued at $66 billion following a $2 billion funding round from this year—a valuation down more than 25% from a year earlier, according to the&nbsp;<a href="https://www.wsj.com/articles/fashion-giant-shein-raises-2-billion-but-lowers-valuation-by-a-third-1f8c316b" target="_blank" rel="noreferrer noopener"><em>Wall Street Journal.</em></a></p>



<p>Shein did not immediately respond to a request for comment from Forbes.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>Shein is known for its fast fashion platform that offers low prices on a wide variety of men’s and women&#8217;s clothing, making it a popular brand in the U.S. According to a Money.co.uk&nbsp;<a href="https://www.money.co.uk/credit-cards/most-popular-fashion-brands-2022" target="_blank" rel="noreferrer noopener">report</a>&nbsp;last year, Shein managed to overtake companies such as Zara, Nike and Adidas in the world’s most-Googled clothing brands. However, the company’s success comes at a highly-scrutinized cost involving high emissions and alleged forced labor that lawmakers have encouraged the SEC to&nbsp;<a href="https://www.cnbc.com/2023/05/01/shein-china-congress-forced-labor-inquiry.html" target="_blank" rel="noreferrer noopener">crack down on</a>. The company produced about&nbsp;<a href="https://www.businessoffashion.com/news/topics/shein-sustainability-emissions-global-warming-fast-fashion/" target="_blank" rel="noreferrer noopener">6.3 million tons</a>&nbsp;of carbon dioxide in 2021 and has historically&nbsp;<a href="https://www.cnbc.com/2023/05/01/shein-china-congress-forced-labor-inquiry.html" target="_blank" rel="noreferrer noopener">denied</a>&nbsp;forced labor allegations and maintained that it has worked to comply with customs and import laws. However, attempts to clear its record, such as a tour of a clothing factory given by the company to influences, have been&nbsp;<a href="https://www.forbes.com/sites/darreonnadavis/2023/06/27/sheins-influencer-trip-backlash-explained-and-what-we-know-about-allegations-against-them/?sh=49c52cf73508">met with skepticism.</a></p>



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



<p><a href="https://www.wsj.com/articles/shein-valued-at-100-billion-in-funding-round-11649126740" target="_blank" rel="noreferrer noopener">$100 billion</a>. That was Shein’s reported valuation in a funding round last year before plummeting down to&nbsp;<a href="https://www.ft.com/content/e84a6fcd-0881-47a1-b5dd-610ab72e7fdf" target="_blank" rel="noreferrer noopener">around $60 billion</a>&nbsp;this year.</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.reuters.com/business/retail-consumer/chinas-shein-files-us-ipo-sources-2023-06-29/?taid=649dc58f25570b0001e072d2&amp;utm_campaign=trueAnthem:+Trending+Content&amp;utm_medium=trueAnthem&amp;utm_source=twitter" target="_blank" rel="noreferrer noopener">Exclusive: China&#8217;s Shein files for U.S. IPO -sources</a>&nbsp;(Reuters)</p>



<p><a href="https://www.axios.com/2023/06/29/shein-denies-report-that-its-filed-for-an-ipo" target="_blank" rel="noreferrer noopener">Shein denies report that it&#8217;s filed for an IPO</a>&nbsp;(Axios)</p>



<p><a href="https://www.forbes.com/sites/darreonnadavis/2023/06/27/sheins-influencer-trip-backlash-explained-and-what-we-know-about-allegations-against-them/?sh=49c52cf73508">Shein’s Influencer Trip Backlash Explained—And What We Know About Allegations Against Them</a>&nbsp;(<em>Forbes</em>)</p>



<p><a href="https://time.com/6247732/shein-climate-change-labor-fashion/" target="_blank" rel="noreferrer noopener">Shein Is the World’s Most Popular Fashion Brand—at a Huge Cost to Us All </a>(<em>Time)</em></p>


In this photo illustration, the fashion retailer Shein

Is Shein About To Hit Stock Market? Report Says Company Filed For IPO—But Chinese Firm Denies Plan


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Beyoncé’s “Renaissance” world tour—which launched with two nights in Stockholm last month—may have contributed to Sweden’s increased inflation rate in May, according to an economist from Danske Bank, after the tour resulted in increased hotel, restaurant and recreation prices.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>Michael Grahn, Danske Bank’s chief economist,&nbsp;<a href="https://twitter.com/MichaelGrahn1/status/1668865814110380033?s=20" target="_blank" rel="noreferrer noopener">said</a>&nbsp;Beyoncé’s tour “probably” added between 0.2 and 0.3 percentage points to Sweden’s inflation rate, which fell from 10.5% in April to 9.7% in May.</p>



<p>The Swedish government&nbsp;<a href="https://www.scb.se/en/finding-statistics/statistics-by-subject-area/prices-and-consumption/consumer-price-index/consumer-price-index-cpi/pong/statistical-news/consumer-price-index-cpi-may-2023/" target="_blank" rel="noreferrer noopener">noted</a>&nbsp;in its inflation report that the inflation rate was affected by hotel and restaurant prices, which rose 3.3% over the previous month, and prices for “recreational services,” which include concert tickets.</p>



<p>Grahn—who said the scenario was “very rare”—<a href="https://www.wsj.com/articles/the-beyonce-effect-swedens-inflation-feels-the-hit-417370a6?mod=hp_listb_pos4" target="_blank" rel="noreferrer noopener">told</a>&nbsp;the&nbsp;<em>Wall Street Journal&nbsp;</em>that increased prices were most likely affected by Beyoncé’s fans, who “vacuumed hotels around Stockholm” while “bidding” for hotel rates.</p>



<p>The added percentage points are expected to be “reversed” in June as hotel and ticket prices “reverse back to normal,” Grahn&nbsp;<a href="https://twitter.com/MichaelGrahn1/status/1668865816597610496" target="_blank" rel="noreferrer noopener">added</a>.</p>



<p>Beyonce performed both Stockholm shows before sold-out audiences of 46,000, including many who flew in from around the world.</p>



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h2>



<p>“Beyoncé is responsible for the extra upside surprise this month,” Grahn&nbsp;<a href="https://www.ft.com/content/abc431c4-426d-4a9f-9674-f437ed504eb7" target="_blank" rel="noreferrer noopener">told</a>&nbsp;the&nbsp;<em>Financial Times</em>, adding, “It’s quite astonishing for a single event. We haven’t seen this before.”</p>



<p>Forbes Daily: Get our best stories, exclusive reporting and essential analysis of the day’s news in your inbox every weekday.Sign Up</p>



<p>By signing up, you accept and agree to our&nbsp;<a href="https://www.forbes.com/terms-and-conditions" target="_blank" rel="noreferrer noopener">Terms of Service</a>&nbsp;(including the class action waiver and arbitration provisions), and you acknowledge our&nbsp;<a href="https://www.forbes.com/privacy" target="_blank" rel="noreferrer noopener">Privacy Statement</a>.</p>



<h2 class="wp-block-heading" id="h-tangent">TANGENT</h2>



<p>Ticketmaster&nbsp;<a href="https://blog.ticketmaster.com/beyonce/" target="_blank" rel="noreferrer noopener">warned</a>&nbsp;in February that demand for “Renaissance” tour tickets in “Group A” cities—including Atlanta, Chicago, Houston, Las Vegas, Toronto and Washington D.C.—exceeded the number of tickets available by 800%.</p>



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



<p>$2.4 billion. That’s how much&nbsp;<em>Forbes</em>&nbsp;<a href="https://www.forbes.com/sites/petercohan/2023/05/08/beyonc-renaissance-tour-could-outearn-taylor-swift-eras-by-600-million/?sh=4933e31e49bc">estimates</a>&nbsp;Beyoncé’s tour could gross in revenue.</p>



<h2 class="wp-block-heading" id="h-forbes-valuation">FORBES VALUATION</h2>



<p>Beyoncé has a net worth of $540 million,&nbsp;<a href="https://www.forbes.com/profile/beyonce-knowles/?sh=1d5096693ce7">according</a>&nbsp;to our most recent estimates.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>Beyoncé—who has won a record 32 Grammy Awards—announced her long-anticipated “Renaissance” world tour to coincide with the release of her&nbsp;<em>Renaissance</em>&nbsp;album, which&nbsp;<a href="https://www.forbes.com/sites/marisadellatto/2022/08/08/beyoncs-renaissance-is-a-no-1-album-but-its-not-her-biggest-debut-ever/?sh=525fc48127d5">debuted&nbsp;</a>No. 1 on the&nbsp;<em>Billboard&nbsp;</em>200 last August. The tour—Beyoncé’s first since 2018—opened in May in Stockholm before subsequently reaching other European cities. The tour will start its North American leg in July. “Renaissance” is Beyoncé’s first solo tour since 2016, when she grossed&nbsp;<a href="https://www.billboard.com/pro/beyonce-formation-tour-2-million-tickets-250-million-dollars/" target="_blank" rel="noreferrer noopener">$256 million</a>&nbsp;with “The Formation World Tour.”</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/carlieporterfield/2023/02/01/beyonc-announces-renaissance-world-tour-dates/?sh=2424d9314d9f">Beyoncé Announces ‘Renaissance’ World Tour Dates</a>&nbsp;(<em>Forbes</em>)</p>



<p><a href="https://www.forbes.com/sites/marisadellatto/2022/08/08/beyoncs-renaissance-is-a-no-1-album-but-its-not-her-biggest-debut-ever/?sh=72337d5d27d5">Beyoncé’s ‘Renaissance’ Is A No. 1 Album—But It’s Not Her Biggest Debut Ever</a> (<em>Forbes</em>)</p>


Beyoncé RENAISSANCE WORLD TOUR – London

Beyoncé Caused Inflation? ‘Renaissance’ Tour May Have Boosted Sweden’s Costs, Economist Says


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Stocks gained Wednesday thanks in part to another artificial intelligence-powered lift, as optimism emanating from the nascent technology keeps driving equities higher against a suboptimal macroeconomic backdrop.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>The Dow Jones Industrial Average, S&amp;P 500 and tech-heavy Nasdaq each rose 1.2% or more Wednesday, just the third time that happened since the beginning of April.</p>



<p>Yet again driving the gains were tech heavyweights, as Tesla (up 4.4%), Nvidia (3.4%), Amazon 1.8%), Meta (1.5%), Alphabet (1.3%), Microsoft (0.9%) and Apple (0.3%) spiked, tacking on a combined $123 billion in market capitalization Wednesday.</p>



<p>Those giants, which have rallied more than $1 trillion year-to-date collectively thanks in large part to the AI boom, offered more fuel for optimistic investors Wednesday, with Amazon&nbsp;<a href="https://www.bloomberg.com/news/articles/2023-05-17/amazon-unveils-new-alexa-gadgets-as-chatgpt-rivalry-heats-up" target="_blank" rel="noreferrer noopener">announcing</a>&nbsp;AI enhancements to its Alexa devices and Nvidia&nbsp;<a href="https://nvidianews.nvidia.com/news/servicenow-and-nvidia-announce-partnership-to-build-generative-ai-across-enterprise-it" target="_blank" rel="noreferrer noopener">unveiling</a>&nbsp;a new partnership with ServiceNow to expand generative AI in cloud computing.</p>



<p>Hedge fund billionaire Steve Cohen declared Tuesday he has a “pretty bullish” outlook on the market as a whole thanks to streamlined corporate efficiency from AI,&nbsp;<a href="https://www.bloomberg.com/news/articles/2023-05-17/steve-cohen-says-he-s-pretty-bullish-on-markets-thanks-to-ai?srnd=premium" target="_blank" rel="noreferrer noopener">according</a>&nbsp;to Bloomberg.</p>



<p>“I’m making a prognostication: We’re going up,” Cohen said about broad equity prices, explaining increased automation should widen corporate profits in coming quarters.</p>



<h2 class="wp-block-heading" id="h-contra">CONTRA</h2>



<p>The S&amp;P is up 9% year-to-date and excitement about what AI could mean for investors is at a&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/03/01/ai-is-the-new-electricity-bank-of-america-picks-20-stocks-to-cash-in-on-chatgpt-hype/?sh=55bfdf2a77ac">fever pitch</a>, but stocks will encounter a “rocky road” later this year, Wells Fargo strategist Scott Wren wrote in a Wednesday note to clients. Wren explained the strong likelihood of the U.S.&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/04/12/fed-officials-now-expect-us-will-enter-mild-recession-this-year-after-banking-crisis-rattles-markets/?sh=5433b921107c">slipping into</a>&nbsp;a recession and his expectation that companies will fail to deliver on profit expectations thanks to thinner margins as interest rates remain high. Earnings for S&amp;P companies declined by 6.8% year-over-year in the most recent quarter, according to recent Morgan Stanley research.</p>



<h2 class="wp-block-heading" id="h-tangent">TANGENT</h2>



<p>Tesla, which hosted its annual meeting with shareholders after Tuesday’s market close, posted its second-largest daily stock gain since March, tacking on $25 billion in market value after it said it will advertise its vehicle for the first time and its CEO Elon Musk vowed to remain in charge for the foreseeable future. Musk, who&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/05/16/elon-musks-attack-on-george-soros-distressing-and-dangerous-jewish-group-says/?sh=7ad31cc130ba">drew the ire</a>&nbsp;of several Jewish civil rights groups this week for touting conspiracies mirroring antisemitic tropes about billionaire George Soros, added the most to his net worth of anybody on earth Wednesday with a $5 billion bump.</p>



<h2 class="wp-block-heading" id="h-forbes-valuations">FORBES VALUATIONS</h2>



<p>Musk holds the second-largest fortune in the world at $181 billion, while Cohen is owner of the planet’s 93rd-largest wealth pile at $17.5 billion. Cohen chairs Point72 Asset Management and owns the New York Mets MLB team.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>Since the late 2022 launch of the Microsoft-subsidized ChatGPT generative AI product, AI fever has infected Wall Street; Bank of America strategists dubbed AI the “new electricity” in a March note, projecting it to create massive gains for stocks. A slew of technology companies have revealed their own AI services, but&nbsp;<a href="https://www.forbes.com/sites/jonathanponciano/2023/04/29/this-stock-market-indicator-is-the-weakest-its-ever-been-and-other-warning-signs-are-flaring/?sh=162f37947b4c">benefitting the most</a>&nbsp;are mega-cap tech stocks like Nvidia, Meta, Alphabet and Amazon, four of the 20 best-performing stocks on the S&amp;P year-to-date.</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/dereksaul/2023/03/01/ai-is-the-new-electricity-bank-of-america-picks-20-stocks-to-cash-in-on-chatgpt-hype/?sh=55bfdf2a77ac">‘AI Is The New Electricity’: Bank Of America Picks 20 Stocks To Cash In On ChatGPT Hype</a> (<em>Forbes</em>)</p>



<p><a href="https://www.forbes.com/sites/dereksaul/"></a><strong><em>By Derek Saul, Forbes Staff</em></strong></p>


Dow Jumps 400 Points As This Billionaire Investor Says Stock Market Has Room To Grow


<p><strong>The party is over for struggling retailers that enjoyed a pandemic-era boost of cheap loans and stimulus-driven spending.</strong></p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<p><strong>Retailers that have no business still being in business are starting to go out of business.</strong></p>



<p>Unfortunately, it’s about time.</p>



<p>This year is on track to be the worst year for retail bankruptcies since 2020, with strip-mall mainstays like Bed Bath &amp; Beyond, Tuesday Morning, Party City and David’s Bridal all filing for Chapter 11 in the last several months.</p>



<p>“These are companies that have been in trouble for a while,” said Neil Saunders, managing director at research firm GlobalData. “It was almost a matter of when, rather than if, they went under.”</p>



<p>The spate of bankruptcies comes at a time when Americans have pulled back on discretionary spending and begun socking away more in savings as the cost of gas, groceries and other staples becomes more expensive, talk of a potential recession continues and major companies conduct layoffs. Consumer spending is watched closely since it accounts for more than two-thirds of the nation’s gross domestic product. Shoppers have shifted spending sharply in different directions over the pandemic, including pivoting away from categories like home goods after an early-pandemic buying spree.</p>



<p>However, while the economy isn’t helping and may be acting as a catalyst, the retailers who are teetering now have long had major problems. Retail spending remains “surprisingly robust” in some ways, said Saunders. More often a retailer’s downfall can be traced to shabby stores or an uninspiring online presence.</p>



<p>Plenty more retailers could go bankrupt before the year is over. The ones that look the most vulnerable to default include Rite Aid, Jo-Ann, Belk, At Home and 99 Cents Only, according to ratings companies Moody’s and S&amp;P Global. This watchlist skews toward specialty stores with exposure to the pressured home goods sector.</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<p>The pandemic bought many retailers more time. Consumers spent freely, flush with cash from stimulus checks and unable to put it toward vacation or dinner and a movie. Retailers were also able to borrow money on the cheap.</p>



<p>“Covid masked some of the weak players,” said Steve Dennis, founder of SageBerry Consulting. “It staved off the reckoning.”</p>



<p>Now that the pandemic is over, at least officially, it’s back to reality and retailers are confronting the sins of the past: too many stores, too much debt and too few customers.</p>



<p>Retailers who loaded up on debt are having a harder time making payments as they watch sales and profits deteriorate. For instance, discount home goods retailer Tuesday Morning referenced its “exceedingly burdensome debt” in February when filing for bankruptcy for the second time in two years. Its net debt has increased tenfold, jumping from $23 million in 2019 to some $250 million last year. Sales during that time fell by 25%.</p>



<p>Christmas Tree Shops also cited its “burdensome liabilities” when filing for bankruptcy earlier this month. Its owner, Handil Holdings, listed liabilities of as much as $100 million in court documents.</p>



<p>Twelve percent of retailers now have a Triple-C rating from S&amp;P Global, meaning there’s a 50-50 chance that things get so bad they’ll default on their loans. That’s double the figure from last year and triple the year before.</p>



<p>“A lot of these companies were essentially zombie companies pre-Covid,” said Craig Ganz, an attorney at Ballard Spahr who has handled retail bankruptcies for several decades. “They were primarily surviving on debt, and now debt has become simply too expensive for them to afford.”</p>



<p>The Federal Reserve’s rapid rate hikes have made it much costlier for retailers to take on new debt, whether it’s to finance investments in growth areas or give themselves some breathing room, said Sarah Wyeth, who leads the retail and consumer sectors for S&amp;P Global Ratings.</p>



<p>“Any issuer that’s very stressed and needs to go to the market in the next year or so is going to be very challenged,” said Wyeth.</p>



<p>Meanwhile, the bills must be paid. Overhead is especially vexing for retailers stuck with large, lumbering brick-and-mortar fleets from an earlier era who aren’t drawing enough shoppers to cover the costs of paying workers, stocking shelves and keeping the lights on. The home furnishing sector is notorious for having too many stores, said Craig Johnson, founder of Customer Growth Partners, a retail research firm.</p>



<p>“The seeds of these companies’ demise was planted not just years ago, but decades ago,” he said.</p>



<p><em><strong>By Lauren Debter, Forbes Staff</strong></em></p>


Netherlands Reimposes Partial Lockdown Amid Latest Covid-19 Wave

Plenty More Retailers Will Go Bankrupt This Year. The Only Surprise Is It Didn’t Happen Sooner.


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Big-tech stocks rallied after earnings this week and drove big gains for major indexes, but the number of stocks actually outperforming the broader market has slipped to levels unseen in decades—and in some cases, ever—pushing some experts to warn the strength may be a telltale sign of economic weakness.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>Buoyed by blockbuster&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/04/25/microsoft-earnings-stock-climbs-as-company-rides-ai-wave-to-profit-sales-beats/">earnings</a>&nbsp;releases from Microsoft, Meta and Google-parent Alphabet, the S&amp;P 500 and tech-heavy Nasdaq have jumped about 2% and 3% since Tuesday, respectively—tacking on to a rally that&#8217;s seen the Nasdaq surge 17% this year.</p>



<p>Despite the gains, however, JPMorgan analysts led by Dubravko Lakos-Bujas warned clients in a note that market breadth—as measured by the percentage of stocks in the S&amp;P that have outperformed the broader index—is the &#8220;weakest ever&#8221; by some measures.</p>



<p>For one, the market value of the S&amp;P&#8217;s two largest stocks, Apple and Microsoft, commands some 14% of the index&#8217;s value as a whole—the most ever in history; meanwhile, the 10 largest stocks are responsible for nearly 90% of the S&amp;P&#8217;s return this year—also the most ever.</p>



<p>Such &#8220;extreme concentration&#8221; in stocks supports a &#8220;bearish outcome for the market&#8221; because it has typically preceded economic slowdowns or recessions in the past, Dubravko Lakos-Bujas wrote, adding that the current rally, in particular, seems fueled by optimism that should soon fade about the end of the Federal Reserve&#8217;s interest rate hikes.</p>



<p>To make matters worse, JPMorgan notes the current degree of crowding implies &#8220;the risk of recession is far from priced in&#8221; even though fears have re-emerged following the collapse of Silvergate, Silicon Valley Bank and Signature Bank last month.</p>



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<p>Morgan Stanley&#8217;s Michael Wilson is no more optimistic, saying on Tuesday he&#8217;s not convinced the bear market is over unless the performance of small-cap and regional bank stocks—both of which have underperformed while big tech rallies—improves.</p>



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h2>



<p>&#8220;We are challenged to find a period in history during which these indices have underperformed to such a degree while a new bull market was beginning,&#8221; says Wilson.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>After slipping into a bear market late last year, stocks have largely rallied over the past four months. Much of the bullishness has been fueled by hopes the Fed may soon cut interest rates (after more than a year of hiking them) to help ease uncertainty in the financial sector. &#8220;Big tech has been outperforming this year as Wall Street expects rate cuts to provide relief,&#8221; explains Oanda analyst Edward Moya—before expressing some doubts: &#8220;For the rally to continue we need to see a few hundred basis points in rate cuts, which is not necessarily going to happen if the Fed chooses inflation over financial stability over the next year.&#8221;</p>



<h2 class="wp-block-heading" id="h-what-to-watch-for">WHAT TO WATCH FOR</h2>



<p>The Fed’s next policy meeting concludes next Wednesday. The futures market implies just a 14% chance the central bank will keep rates the same and an 86% chance it will again raise rates by 25 basis points, according to the CME FedWatch Tool. Over the past few weeks, the odds have only grown in favor of another rate hike. Annual inflation fell for a ninth-straight month in March, but consumer prices still&nbsp;<a href="https://www.forbes.com/sites/jonathanponciano/2023/04/12/prices-rose-another-5-in-march-lowest-inflation-reading-in-nearly-two-years/?sh=613fed083932">rose</a>&nbsp;by 5% on a yearly basis—well above the Fed&#8217;s 2% target.</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/dereksaul/2023/04/10/these-7-tech-stocks-command-almost-90-of-the-sp-500s-gains-signaling-market-rally-may-not-be-so-healthy/?sh=1b83adce65d5">These 7 Tech Stocks Command Almost 90% Of The S&amp;P 500’s Gains</a><em>&nbsp;(Forbes)</em></p>



<p><a href="https://www.forbes.com/sites/dereksaul/2023/04/27/dow-gains-500-points-thanks-to-big-techs-320-billion-rally/">Dow Gains 500 Points Thanks To Big Tech’s $320 Billion Rally</a><strong>&nbsp;</strong><em>(Forbes)</em><a href="https://www.forbes.com/sites/jonathanponciano/"></a></p>



<p><strong><em>By Jonathan Ponciano, Forbes Staff</em></strong></p>


Illustrations of Cryptocurrency In Indonesia

This Stock Market Indicator Is The Weakest It’s Ever Been—And Other Warning Signs Are Flaring


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>The market value of LVMH, the company chaired by the world’s richest person Bernard Arnault, just surpassed that of Tesla, the firm led by the world’s second-richest person Elon Musk, for the first time in several months, as Arnault’s lead on Musk as the richest man extends to nearly $70 billion.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>LVMH, the French luxury conglomerate behind brands such as Tiffany, Christian Dior and Moët Hennessy, had a market capitalization of $484 billion Tuesday at 11 a.m. ET.</p>



<p>That narrowly falls short of Tesla’s $510 billion market cap after shares of the American electric vehicle titan slipped, bringing its April&nbsp;<a href="https://www.forbes.com/sites/dereksaul/?sh=49a4ec1d76f9">stock slide</a>&nbsp;to 22% amid investor concerns about dwindling profit margins.</p>



<p>It’d the first time since mid-January that LVMH’s market cap topped Tesla’s, according to YCharts data, and the first time since June 2020, excluding the three-week blip for Tesla at the turn of 2023.</p>



<h2 class="wp-block-heading" id="h-forbes-valuations">FORBES VALUATIONS</h2>



<p>Arnault is worth $240.4 billion, according to our&nbsp;<a href="https://www.forbes.com/real-time-billionaires/#2426131b3d78">latest estimates</a>, $67.1 billion more than Musk’s $173.3 billion wealth pile. Roughly 97% of Arnault’s fortune&nbsp;<a href="https://www.forbes.com/sites/forbeswealthteam/article/behind-the-billions-bernard-arnault/?sh=3ca8b6e8316d">comes from</a>&nbsp;his 48% stake in LVMH, while Musk’s 23% stake in Tesla&nbsp;<a href="https://www.forbes.com/sites/forbeswealthteam/article/elon-musk/?sh=b48f04026afa">accounts for</a>&nbsp;about 58% of his net worth.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>LVMH hit another key milestone earlier this week,&nbsp;<a href="https://www.bloomberg.com/news/articles/2023-04-24/lvmh-s-market-value-surpasses-500-billion-a-first-in-europe" target="_blank" rel="noreferrer noopener">becoming</a>&nbsp;the first European company to ever exceed a $500 billion valuation. Tesla and LVMH are the 10th and 11th most valuable companies in the world, according to&nbsp;<a href="https://companiesmarketcap.com/" target="_blank" rel="noreferrer noopener">Companies Market Cap</a>. Arnault&nbsp;<a href="https://www.forbes.com/sites/mattdurot/2022/12/07/elon-musk-was-overtaken-as-richest-person-in-the-worldbriefly/?sh=4682c562778e">overtook</a>&nbsp;Musk as the richest person on earth in December. Musk’s net worth has cratered by 15% thus far in April.</p>



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<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/kerryadolan/2023/04/04/the-worlds-richest-person-2023/?sh=108c50344e49">The World’s Richest Person 2023</a>&nbsp;(<em>Forbes</em>)</p>



<p><a href="https://www.forbes.com/sites/forbeswealthteam/article/behind-the-billions-bernard-arnault/?sh=3ca8b6e8316d">Behind The Billions: Bernard Arnault</a>&nbsp;(<em>Forbes</em>)</p>



<p><a href="https://www.forbes.com/sites/forbeswealthteam/article/elon-musk/?sh=b48f04026afa">Behind The Billions: Elon Musk</a> (<em>Forbes</em>)</p>



<p><a href="https://www.forbes.com/sites/dereksaul/"></a><strong><em>By Derek Saul, Forbes Staff </em></strong></p>


Untitled design (8)

LVMH Is Almost More Valuable Than Tesla—As Wealth Gap Widens Between Arnault And Musk


<p><strong>Name:&nbsp;</strong>Angela Mwanza</p>



<p><strong>Firm:&nbsp;</strong>UBS Private Wealth Management</p>



<p><strong>Location:</strong>&nbsp;New York, NY</p>



<p><strong>AUM:</strong>&nbsp;$878 million</p>



<p><strong>Forbes Rankings:&nbsp;</strong>Best-in-State Wealth Advisors, Top Women Wealth Advisors Best-In-State, America’s Top Women Wealth Advisors</p>



<p><strong>Background:</strong>&nbsp;Angela Mwanza was born and raised in Zambia, where her family still lives. She eventually moved to Germany and learned the language there while pursuing a degree in Linguistics. While studying, Mwanza worked for a sports fashion sales company specializing in snowboarding. “I’m scared of heights and come from Africa so I had never snowboarded… but I self taught myself and still snowboard to this day!,” says Mwanza. In the late 90s, Mwanza decided it was time for a change of pace so she earned her MBA at Cornell University and then landed a job at JPMorgan Private Bank in 2000. When the financial crisis rolled around eight years later, she was working at Lehman Brothers, but was able to move to UBS in the midst of the downturn, where she has worked ever since.</p>



<p><strong>Competitive Edge:</strong>&nbsp;Mwanza is highly focused on family finances and philanthropy in her practice, honing in on the purpose and values of each client in order to be intentional about all aspects of their wealth. “The pain points I kept hearing from clients all had to do with the complexities that wealth brings—and the number one thing people care about is their family,” says Mwanza. As a result she is “always thinking generationally”, engaging the next generation and facilitating discussions throughout the entire family. What’s more, many of her clients have a passion for making a positive change in the world, so a key part of her practice revolves around socially responsible and impact investments.</p>



<p><strong>Biggest Challenge:&nbsp;</strong>When she first moved to the United States for business school, Mwanza had to build up her knowledge and expertises from scratch. “I was so out of my element and completely clueless at the time,” she recalls. “I had never heard of&nbsp;<em>The Wall Street Journal</em>!”</p>



<p><strong>Investment Philosophy/Strategy:</strong>&nbsp;Mwanza takes a holistic approach to working with clients: “I can’t be a good advisor if I’m not speaking to their other advisors and attorneys,” she says. In terms of investing, she and her team are strong believers in long-term, risk-adjusted and tax-aware returns. “Most clients who are entrepreneurial tend to have a lot of risk outside of the portfolio we are managing—so we tend to be moderately conservative when thinking about their lifetime,” adds Mwanza.</p>



<p><strong>Investment Outlook:&nbsp;</strong>“Markets like this with rising rates tend to favor value over growth, so we position more defensively from a tactical standpoint,” she says. “There’s a lot of unknowns but that’s something we just<a href="https://www.forbes.com/digital-assets/assets/just-just/" target="_blank" rel="noreferrer noopener">just</a>&nbsp;<a href="https://www.forbes.com/digital-assets/assets/just-just/">-0.3%</a>&nbsp;have to be ready for and resilient about when it comes to client portfolios.” Mwanza and her team like alternative investments but shuns gold, which “doesn’t make sense” as a hedge to market volatility when Treasuries are yielding nearly 5%. “Our outlook is long term, so we’re not bothered by day to day volatility,” says Mwanza.</p>



<p><strong>Best Advice:</strong>&nbsp;“It’s very important not to be emotionally invested—people get antsy and feel like they have to do something but that’s when most mistakes are made,” she says.</p>



<p><strong>Favorite Hobby: </strong>Mwanza loves pushing her limits outside of work, too: “Don’t tell me I can’t do something,” she says. She has run six marathons (one in Boston, five in New York) and has scaled the summit of Mt. Kilimanjaro. Mwanza also enjoys traveling with her husband, taking trips to see endangered species like rhinos in Asia or tortoises in the Galapagos.</p>



<p><a href="https://www.forbes.com/sites/sergeiklebnikov/"></a><strong><em>By Sergei Klebnikov, Forbes Staff</em></strong></p>


Mighty Dream Forum Hosted By Pharrell Williams 2022 – Day 2

Zambia-Born UBS Advisor Loves Snowboarding And Impact Investing


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>As fears grow over a wobbly economy, talk of the yield curve—especially when it becomes inverted—grows, because it has often been seen as a chief predictor of a recession.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p><strong>Key terms:</strong>&nbsp;Interest rates are the percentage a lender will charge a borrower for the amount borrowed, while a&nbsp;<a href="https://www.forbes.com/advisor/investing/what-is-a-bond/">bond</a>&nbsp;is a loan instrument issued by a government or a company (both public and private) to a lender.</p>



<p>Bonds can be used when a government needs to fund roads, schools and other infrastructure, or when a company wants to grow its business by buying property, research and hiring new staff.</p>



<p>Federal government bonds—simply called Treasurys—are virtually guaranteed to be paid back after a certain period of time at a fixed interest rate (unless the U.S. defaults); they usually promise the investor a higher rate the longer they take to pay back.</p>



<p>The yield curve measures interest rates of bonds over a range of time before they are paid back, which can range from a single month to 30 years and is tracked daily by the&nbsp;<a href="https://home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics" target="_blank" rel="noreferrer noopener">U.S. Department of Treasury</a>.</p>



<p>A normal yield curve shows yields of short-term bonds (two to five years) through long-term bonds (between 10 to 30 years) and shows an upward slope showing a higher yield over time, signaling confidence in government or corporate bonds are strong investments likely to pay off over time.</p>



<p>A flat curve is when all bond rates are similar across companies and governments alike and show no difference, suggesting longer-term bonds may not yield more over time.</p>



<p>The&nbsp;<a href="https://www.washingtonpost.com/business/what-the-inverted-yield-curve-says-about-the-next-recession/2022/12/06/5367ddb8-755e-11ed-a199-927b334b939f_story.html" target="_blank" rel="noreferrer noopener">inverted yield curve</a>&nbsp;shows that investors aren’t sure of the long-term profitability of a company’s or government’s ability to pay a debt in a certain fixed time, may be demanding more money for short-term bonds, or are willing to accept lower rates for long-term bonds, out of concern for what’s coming in the future.</p>



<p>Investors often use the yield curve to&nbsp;<a href="https://fred.stlouisfed.org/series/T10Y3M" target="_blank" rel="noreferrer noopener">track&nbsp;</a>where the economy is headed and make predictions about where to invest their money: if there is a flat curve, investors may put their money in reliable areas like consumer staples as opposed to luxury goods companies.</p>



<p>While the inverted yield curve does not serve as a forecast for a recession, it’s certainly an indicator tied to recessions, but investors should look at the economy as a whole including other factors such as inflation, job reports and wage growth before reaching the conclusion that we are in a recession.</p>



<h2 class="wp-block-heading" id="h-news-peg">NEWS PEG</h2>



<p>The yield curve inversion became more intense after Federal Reserve Chairman Jerome Powell signaled the Fed would hike <a href="https://www.barrons.com/articles/yield-curve-inversion-bonds-a483aaed" target="_blank" rel="noreferrer noopener">interest rates</a> higher than it previously expected to deal with inflation, driving fears the spike could slow the economy and trigger a recession. We have been experiencing a yield curve inversion since <a href="https://www.forbes.com/sites/simonmoore/2022/10/19/recession-alarm-just-sounded-by-yield-curve-indicator-with-stellar-track-record/?sh=71b54d309fee">October</a>, when 3-month rates rose above 10-year treasury bonds. Previously, the last inversion was in <a href="https://www.forbes.com/sites/chuckjones/2020/12/31/2019s-yield-curve-inversion-means-a-recession-could-hit-in-2020/?sh=73e689a14229">May 2019</a> when U.S. 3-year treasury bonds were higher than the 10-year treasury bonds and lasted until October that same year. Then in 2020 the U.S. entered a recession due to the Covid-19 pandemic, lasting just <a href="https://www.reuters.com/business/recession-ended-april-2020-making-it-shortest-record-2021-07-19/" target="_blank" rel="noreferrer noopener">two months</a> (the shortest on record).</p>



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h2>



<p>&#8220;If you lock your money up for a longer period of time, you almost always get a higher interest rate,&#8221; Duke University finance professor Campbell Harvey told ABC News. &#8220;However, today, things are backwards &#8211; 10-year interest rates are far below short-term rates. This is known as an &#8216;inverted yield curve.&#8217; In the past 50 years, we have seen seven inverted interest rate curves. Each one was followed by a recession.&#8221;</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>In 1986, Harvey published a dissertation that linked inverted yield curves to recessions after closely studying four major economic downturns from the 1960s to the 1980s. All nine recessions since 1955 have been preceded by an inverted yield curve according to <a href="https://www.frbsf.org/economic-research/wp-content/uploads/sites/4/el2018-07.pdf" target="_blank" rel="noreferrer noopener">research</a> from the San Francisco Fed—except in one case. The time between an inverted yield curve and a recession has ranged from six to 24 months. As soon as the yield curve begins to invert, economists and investors begin to turn their heads.</p>



<p><strong><em>By Anthony Tellez, Forbes Staff</em></strong></p>


Business fund investor planning for investment in crisis

What To Know About The Yield Curve—And Why It May Predict A Recession


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Shares of Novavax fell more than 25% in after-hours trading Tuesday, following a dismal fourth quarter earnings report and a<a href="https://ir.novavax.com/2023-02-28-Novavax-Reports-Fourth-Quarter-and-Full-Year-2022-Financial-Results-and-Operational-Highlights" target="_blank" rel="noreferrer noopener"> warning</a> from the Covid vaccine maker that uncertainty over future funding for coronavirus shots has prompted “substantial doubt” about its ability to stay in business.</p>



<h2 class="wp-block-heading">KEY FACTS</h2>



<p>The company’s stock price rose more than 6.8% to $9.26 before the market closed Tuesday but plummeted some 25.7% to $6.88 following the after-hours earnings report.</p>



<p>Novavax reported fourth quarter losses of $182 million after only posting $357 million in sales—well below expectations of $383 million.</p>



<p>Its statement about future financial framework was even more troubling, saying, “substantial doubt exists regarding our ability to continue” over the next year.</p>



<p>The company stated it believes it has enough capital to run for another year, but the forecast is of low confidence, in part because the Biden Administration is expected to<a href="https://www.cnbc.com/2023/02/04/us-plans-to-stop-buying-covid-shots-in-the-fall-what-that-means.html" target="_blank" rel="noreferrer noopener"> stop</a> buying Covid vaccines and distributing them to Americans for free at some point this year.</p>



<h2 class="wp-block-heading">WHAT TO WATCH FOR</h2>



<p>Novavax will likely cut some jobs to reduce its “hot rate” of spending, CEO John Jacobs told<a href="https://www.reuters.com/business/healthcare-pharmaceuticals/novavax-raises-doubts-about-its-ability-remain-business-2023-02-28/" target="_blank" rel="noreferrer noopener">&nbsp;Reuters</a>. The company says it has more than 1,500 employees.</p>



<h2 class="wp-block-heading">CRUCIAL QUOTE</h2>



<p>&#8220;We&#8217;re in the process of assessing the global footprint of Novavax, rationalizing our supply chain, rationalizing the portfolio and rationalizing the company structure and our infrastructure,&#8221; Jacobs told Reuters.</p>



<h2 class="wp-block-heading">SURPRISING FACT</h2>



<p>Novavax’s Covid-19 vaccine was the first product the 36-year-old company brought to the market. It was<a href="https://www.nytimes.com/2020/07/16/health/coronavirus-vaccine-novavax.html" target="_blank" rel="noreferrer noopener">&nbsp;reportedly</a>&nbsp;nearing collapse in 2020 before the Trump Administration awarded it a $1.6 billion contract to develop a vaccine as part of Operation Warp Speed.</p>



<h2 class="wp-block-heading">KEY BACKGROUND</h2>



<p>Novavax’s stock traded at more than $300 at times in 2021 as investors put high hopes in its development of a protein-based vaccine, a more traditional method compared with Pfizer and Moderna’s mRNA approach. Continued manufacturing problems led to a delay in winning regulatory approval, and by the time<a href="https://www.forbes.com/sites/carlieporterfield/2022/07/13/fda-authorizes-novavaxs-covid-19-vaccine-for-adults/?sh=31d2d61e54f3">&nbsp;Novavax’s shot became available</a>&nbsp;in July 2022, Americans’ initial rush to get<a href="https://www.bloomberg.com/graphics/covid-vaccine-tracker-global-distribution/#us" target="_blank" rel="noreferrer noopener">&nbsp;vaccinated</a>&nbsp;was long over. Novavax’s vaccine was the fourth to reach the U.S. market, entering U.S. arms more than a year after Pfizer, Moderna and Johnson &amp; Johnson. Only about 80,000 Novavax shots have reportedly been given in the U.S., compared to hundreds of millions of Pfizer and Moderna doses. Novavax<a href="https://ir.novavax.com/2022-02-23-Novavax-Announces-Shipments-of-its-COVID-19-Vaccine-to-European-Union-Member-States" target="_blank" rel="noreferrer noopener">&nbsp;won</a>&nbsp;approval in the European Union several months before its U.S. rollout, but it was still well behind competitors, and its international campaign has not been enough to overcome a slow rate of uptake in the United States.</p>



<h2 class="wp-block-heading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/carlieporterfield/2022/07/13/fda-authorizes-novavaxs-covid-19-vaccine-for-adults/?sh=31d2d61e54f3">FDA Authorizes Novavax’s Covid-19 Vaccine For Adults</a>&nbsp;(Forbes)</p>



<p><a href="https://www.nytimes.com/2020/07/16/health/coronavirus-vaccine-novavax.html" target="_blank" rel="noreferrer noopener">How a Struggling Company Won $1.6 Billion to Make a Coronavirus Vaccine</a> (New York Times)</p>



<p><strong><em>By Nicholas Reimann, Forbes Staff</em></strong></p>


Vaccinations at Egoli Township as Omicron Cases Spread

Novavax Stock Plunges 25% As Vaccine Maker Has ‘Substantial Doubt’ About Staying In Business


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>After a slew of data showing the economy in a much more precarious position than previously believed, the stock market could be poised for another forceful plunge in March, according to Morgan Stanley’s investment chief, who notes that the last month of the quarter has been difficult for stocks over the year, as investors gear up for a fresh round of negative earnings reports.</p>



<h2 class="wp-block-heading">KEY FACTS</h2>



<p>Though high inflation and Federal Reserve interest rate hikes have fueled much of the fears driving the ongoing stock weakness, the depth and length of most bear markets are determined by the trend in earnings projections, the Morgan Stanley team led by Michael Wilson told clients in a Monday note.</p>



<p>Over the past year, stocks have rallied as corporate earnings come out, but then plunged in the month leading up to new reports, which have consistently shown companies cutting profit expectations.</p>



<p>After surging more than 16% since October and then abruptly falling 3% last week, the S&amp;P 500 is at a “critical” level, cautions Wilson, saying there’s a “high risk” the bear market could induce a forceful stock plunge in March (the last month of the quarter)—particularly since earnings are expected to take another hit once reports start trickling in.</p>



<p>“Ultimately, we think this rally is a bull trap,” he notes, positing the S&amp;P &#8220;may have one last stand&#8221; but then could plunge as much as 13% more until earnings projections stop falling—which the analyst believes won’t happen for “several more months, if not quarters.”</p>



<p>The Fed’s “relentless” efforts to slow down the economy will “inevitably” hurt earnings and push stocks to a new multi-year low, says Principal Asset Management’s Seema Shah, who is telling investors to brace for increased volatility since it’s become increasingly clear this year that the Fed is not yet finished with its rate hikes.</p>



<h2 class="wp-block-heading">SURPRISING FACT</h2>



<p>After a &#8220;particularly tough&#8221; year for stocks and a&nbsp;<a href="https://www.morningstar.com/articles/1139572/why-are-bonds-selling-off-again" target="_blank" rel="noreferrer noopener">Fed-induced</a>&nbsp;global bond market selloff, yields on the ten-year Treasury are now more than twice the S&amp;P’s estimated dividend yield—bad news for stocks but an opportunity for investors looking to lock in income with a less volatile asset, says Shah.</p>



<h2 class="wp-block-heading">TANGENT</h2>



<p>Texas factory activity fell in February for the first time since May 2020, according to the Dallas Fed’s manufacturing survey&nbsp;<a href="https://www.dallasfed.org/research/surveys/tmos/2023/2302" target="_blank" rel="noreferrer noopener">released</a>&nbsp;Monday. “February has been a slow month—it is hard to know why, but our outlook has worsened for both our business and retail activity in general,” one respondent said, while another posited, “We are not sure if it’s the Fed jacking with interest rates or some sort of cyclical slowdown, but it feels like business has ground to a halt.”</p>



<h2 class="wp-block-heading">KEY BACKGROUND</h2>



<p>After hitting a near two-year low in October, stocks rallied as signs that inflation was slowing started to abound, but this month has shown the journey to normal price levels may be much longer than many hope. On Friday, the Commerce Department&nbsp;<a href="https://www.bea.gov/news/2023/personal-income-and-outlays-january-2023" target="_blank" rel="noreferrer noopener">reported</a>&nbsp;the prices consumers paid for goods and services last month edged up 5.4% from a year ago—up from 5.3% one month prior despite expectations calling for a decline. Though it’s unclear when the Fed will stop raising rates, analysts at Goldman and Bank of America added another rate hike to their forecasts following another hotter-than-expected inflation reading earlier this month. They now expect the central bank will raise rates to a top level of 5.5%, potentially hitting the highest level in more than 20 years.</p>



<h2 class="wp-block-heading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/jonathanponciano/2023/02/24/dow-falls-400-points-as-surprisingly-hot-inflation-data-threatens-more-aggressive-fed-policy/">Dow Falls 400 Points As Surprisingly Hot Inflation Data Threatens More Aggressive Fed Policy</a> <em>(Forbes)</em></p>



<p><strong><em>By Jonathan Ponciano, Forbes Staff</em></strong></p>


Stock Market At ‘Critical’ Level And Braced For ‘High Risk’ Of Collapse In March—Here’s What Investors Should Know


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Netflix’s stock extended its rally Friday as investors continue to slowly regain confidence in the streaming giant after a decline in subscriber growth earlier this year fueled market panic.</p>



<h2 class="wp-block-heading">KEY FACTS</h2>



<p>Netflix shares rose 5% to $326 Friday, outpacing a largely flat market, after analysts at Cowen and Wells Fargo raised their price targets for the stock.</p>



<p>That’s a 69% increase from its $193 ticker six months ago.</p>



<p>Netflix is by far the biggest riser on the S&amp;P 500 during the period, according to FactSet data as of mid-morning Friday, with no other stock rising more than 61% in the timeframe and the index down 1.3% overall since June 9.</p>



<p>But Netflix is still down 45% year-to-date, placing it among the 50 worst performers on the S&amp;P, though Netflix has by far shed its dubious crown of the worst performer on the index it&nbsp;<a href="https://www.forbes.com/sites/sergeiklebnikov/2022/08/22/netflix-is-now-the-worst-performing-stock-in-sp-500-as-shares-plunges-over-60-in-2022/?sh=4d87bb887ac7">achieved</a>&nbsp;in August.</p>



<h2 class="wp-block-heading">SURPRISING FACT</h2>



<p>Netflix’s primary competitors have not fared as well over the last six months, with shares of streaming rivals Disney, Warner Bros. Discovery and Paramount dropping 9%, 29% and 35% during the period, respectively. Other members of the FAANG (Facebook, Amazon, Apple, Netflix, Google) group of West Coast technology giants have similarly failed to match Netflix’s latest rally. Facebook parent Meta is down 37% over the last six months, Amazon 23%, and Google parent Alphabet 18%, while Apple is up 1% during the period.</p>



<h2 class="wp-block-heading">KEY BACKGROUND</h2>



<p>With the company well-positioned to capitalize on a thirst for online entertainment amid stay-at-home orders during the pandemic, Netflix shares rose more than 60% from March 2020 to November 2021, peaking at $692. Consecutive quarters of subscriber losses to start 2022 sent Netflix’s stock spiraling, with shares dropping 35% on April 20 after the first reported user decline. Investors&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2022/10/19/netflix-stock-hits-6-month-high---even-as-wall-street-remains-skeptical/?sh=220cec653d30">piled back</a>&nbsp;into Netflix after the company’s strong quarterly earnings report revealed 2.4 million net subscriber gains and the rollout of its less expensive, advertising-supported tier.</p>



<h2 class="wp-block-heading">CRUCIAL QUOTE</h2>



<p>Netflix’s “global scale, strong brand, and superior user experience position it to remain a leader” in the ever-changing content space, Bank of America analyst Jessica Reif Ehrlich wrote in a note to clients last month, citing optimism about what the new ad tier and password sharing crackdowns would mean for the company’s bottom line.</p>



<h2 class="wp-block-heading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/sergeiklebnikov/2022/08/22/netflix-is-now-the-worst-performing-stock-in-sp-500-as-shares-plunges-over-60-in-2022/?sh=4d87bb887ac7">Netflix Is Now The Worst-Performing Stock In The S&amp;P 500 As Shares Plunge Over 60% In 2022</a>&nbsp;(<em>Forbes</em>)</p>



<p><a href="https://www.forbes.com/sites/dereksaul/2022/10/19/netflix-stock-hits-6-month-high---even-as-wall-street-remains-skeptical/?sh=220cec653d30">Netflix Stock Hits 6-Month High — Even As Wall Street Remains Skeptical</a>&nbsp;(<em>Forbes</em>)</p>



<p><a href="https://www.forbes.com/sites/dereksaul/2022/10/28/heres-how-big-tech-stocks-have-performed-in-2022-as-faang-softens-its-bite/?sh=2f199b4f12db">Here’s How Big Tech Stocks Have Performed In 2022 As FAANG Softens Its Bite</a>&nbsp;(<em>Forbes</em>)</p>



<p><strong><em>By Derek Saul, Forbes Staff</em></strong></p>


Category: Markets