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Your Tuesday Briefing – The New York Instances

We deal with the controversial Taliban claim to the Panjshir Valley and a conviction of a Belarusian opposition leader.

The Taliban claimed Monday that they had conquered the Panjshir Valley and hoisted their flag over Bazarak, the last provincial capital of Afghanistan not firmly under their control, despite opposition forces there saying they would continue fighting from the mountains.

The Taliban never managed to control Panjshir, a rugged area 70 miles north of Kabul, when they last ruled Afghanistan from 1996 to 2001. It was the starting point for the US-led invasion following the September 11, 2001 attacks on New York and the Pentagon.

Soviet forces invaded the territory at least nine times during their occupation of Afghanistan in the 1980s, but were repulsed each time.

Details: Taliban militants posted pictures online of militants hoisting the flag of the Islamic emirate of Afghanistan, as the Taliban call the country, and of their troops speaking to local leaders.

Uncertainty: The National Resistance Front opposition group denied the Taliban’s claims to have conquered the entire province, but conflicting reports on what was going on on the ground were difficult to verify as internet and telephone connections to the region were cut.

A Belarusian court sentenced Maria Kolesnikova to eleven years in prison on Monday after a closed trial in the capital Minsk.

Kolesnikova tried to run for president last year. She and her colleague Maksim Znak, another opposition activist and lawyer, were charged with extremism, illegal seizure of power and damage to state security. Znak was sentenced to ten years in a high-security penal colony.

This was yet another sign of President Alexander Lukashenko’s relentless crackdown on dissent after an election widely condemned as a hoax by many Western governments. An estimated tens of thousands of opposition supporters have fled Belarus since the raid last year.

“This judgment is illegal and unfounded,” said the lawyer of the two, Yevgeny Pylchenko, and announced an appeal. “It’s not based on evidence. During the trial, neither her guilt nor the commission of the crimes of which she was charged was confirmed. “

Context: Kolesnikova became one of the most prominent opposition leaders in Belarus last year after the candidate she campaigned for was arrested and excluded from running. She threw her support behind Svetlana Tikhanovskaya, who competed in the race after her husband was also banned from running and jailed. She and a third candidate, Veronika Tsepkalo, drew tens of thousands of supporters to their pre-election rallies.

New Zealand announced on Monday that it would ease restrictions outside of Auckland, ending a series of lockdowns that began in August.

Residents outside of Auckland will be allowed to return to work and school, and the nationwide alert will be lowered to Level 2 from Wednesday morning, Prime Minister Jacinda Ardern said at a news conference.

Auckland, a city of around 1.7 million people, will stay at level 4, which means that everyone but the most important workers will have to stay at home. Schools will reopen on Thursday morning.

Context: New Zealand is one of the last countries to pursue a so-called Covid Zero strategy and enforce strong restrictions on movement and activity. Other governments that have used this strategy, including Hong Kong and Singapore, have announced that they will be easing their measures.

Data: The average number of new cases every day remains relatively low at 36, but New Zealand’s vaccination campaign has got off to a slow start: only 49 percent of the population have received at least one dose, less than 62 percent in the US and 72 percent in the UK.

Here are the latest updates and maps of the pandemic.

For other developments:

News from Asia

Little ringed plover, an endangered species of bird in the United States, has a defender when roaming the beaches of New York: the plover patrol. Volunteers monitor the area and ensure that people stay away, keep their dogs off the sand, and protect the chicks from harm.

Steven Pinker, the Harvard cognitive psychologist, advocates positivity in an uncertain age. Our talk columnist asked him about his latest book, which takes on rationality.

Your new book is driven by the idea that it would be good if more people thought more rationally. What mechanisms would get more people to test their thinking for rationality? Ideally, our norms of conversation would change. Relying on an anecdote, arguing ad hominem – that should be humiliating.

The most powerful way to get people to behave more rationally is by not focusing on people. We achieve rationality by implementing community rules that make us collectively more rational than any of us individually. People subject their beliefs to empirical tests.

Are there aspects of your own life where you are consciously irrational? The answer is almost certainly yes. I probably do things that I can’t justify morally, like eat meat. I am likely taking risks that, if I did the expected consumption calculation, could not be justified, like cycling. But I still like to ride my bike.

What about love There is nothing irrational about love. Ultimately, our values ​​are neither rational nor irrational. They are our values; these are our goals.

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5 issues to know earlier than the inventory market opens Tuesday, July 27

Here are the most important news, trends and analysis that investors need to start their trading day:

1. Wall Street dips after another day of record high closes

Traders work on the floor of the New York Stock Exchange (NYSE), July 21, 2021.

Brendan McDermid | Reuters

U.S. futures were under some pressure Tuesday, one day after the Dow Jones Industrial Average, S&P 500 and Nasdaq logged a fifth straight session of gains and another day of record high closes. The Federal Reserve holds its two-day July meeting on Tuesday and Wednesday, with the future for rates, bond-buying, and inflation on the agenda. Big Tech earnings are set to start arriving after the bell Tuesday. The second-quarter earnings season has been stronger than expected. So far, 88% of S&P 500 companies reported a positive EPS surprise, according to FactSet. If that’s the final tally, it would be the highest since FactSet began tracking the metric in 2008.

2. Big Tech earnings start after the closing bell

Tim Cook, CEO of Apple (L), Satya Nadella, CEO of Microsoft (C) and Sundar Pichai, CEO of Google.

Getty Images

3. Tesla tops $1 billion in quarterly net income for first time ever

SpaceX founder and Tesla CEO Elon Musk looks on as he visits the construction site of Tesla’s gigafactory in Gruenheide, near Berlin, Germany, May 17, 2021.

Michele Tantussi | Reuters

Shares of Tesla rose about 1.5% in Tuesday’s premarket, the morning after the electric automaker reported earnings of $1.45 per share on $11.96 billion in revenue. Both beat expectations. Tesla passed $1 billion in quarterly net income for the first time, 10 times higher than the year-ago period. The company also reported a $23 million impairment related the bitcoin it holds on its balance sheet. The world’s largest cryptocurrency plunged more than 40% in Q2, so Tesla’s holdings would be worth much less than the nearly $2.5 billion at the end of the first quarter. During Tesla’s post-earnings conference call, CEO Elon Musk said he won’t likely appear on future calls unless he has “something really important” to communicate.

4. GE, UPS best estimates on earnings, revenue

Larry Culp, CEO, General Electric

Scott Mlyn | CNBC

Shares of General Electric jumped more than 3.5% in premarket trading, after the struggling conglomerate exceeded estimates with second-quarter earnings and revenue. GE on Tuesday also said it expects 2021 free cash flow to be $3.5 billion to $5 billion, up from its prior forecast of $2.5 billion to $4.5 billion. Free-cash flow is closely watched by investors as a sign of the health of GE’s operations and ability to repay debt.

UPS CEO Carol Tome meets with workers

Source: UPS

Shares of United Parcel Service dropped about 2% in the premarket, after the delivery giant on Tuesday reported second-quarter earnings and revenue that beat estimates. Under CEO Carol Tome, UPS has been reining in costs and focusing on high margin packages under her “better not bigger” strategy.

5. House select panel on Capitol attack to hold first hearing

U.S. Representative Liz Cheney (R-WY), with Chairman Bennie Thompson (D-MS) and members of the Select Committee to Investigate the January 6th Attack on the U.S. Capitol speak to reporters after meeting with House Speaker Nancy Pelosi (D-CA) at the Capitol in Washington, U.S. July 1, 2021.

Jonathan Ernst | Reuters

The House select committee investigating the deadly pro-Trump invasion of the U.S. Capitol will hold its first hearing Tuesday. The panel will hear directly from four law enforcement officers about their struggles to defend the Capitol from the mob. Wyoming Rep. Liz Cheney, who was ousted from GOP leadership after refusing to stop criticizing Donald Trump for falsely claiming the 2020 election was rigged, is one of two Republicans appointed to the committee so far. The other Republican is Rep. Adam Kinzinger of Illinois. House Speaker Nancy Pelosi previously rejected two of GOP Leader Kevin McCarthy’s picks for the committee.

— Reuters contributed to this report. Follow all the market action like a pro on CNBC Pro. Get the latest on the pandemic with CNBC’s coronavirus coverage.

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5 issues to know earlier than the inventory market opens Tuesday, June 22

Here are the top news, trends, and analysis investors need to start their trading day:

1. Wall Street looks stable after the comeback rally; GameStop pops

A view of the New York Stock Exchange building on Wall Street in downtown Manhattan in New York City.

Roy Rochlin | Getty Images Entertainment | Getty Images

US stock futures rose modestly on Tuesday, a day after the Dow recovered a large portion of its 3.5% decline from last week due to the shift in the Federal Reserve’s rate hike schedule. The 30-share average rose 586 points, or nearly 1.8%, earlier in the week. The S&P 500 gained 1.4%, within 1% of its record high. The Nasdaq was Monday’s relative underperformer, up 0.8%.

SELINSGROVE, PENNSYLVANIA, UNITED STATES – 01/27/2021: A woman walks past the GameStop store in the Susquehanna Valley Mall. An online group rocketed GameStop (GME) and AMC Entertainment Holdings Inc. (AMC) shares to suppress short sellers.

Photo by Paul Weaver / SOPA Images / LightRocket via Getty Images

GameStop shares rose 9% in the premarket after the video game retailer and Original Meme stock completed a previously announced sale of 5 million common shares that raised more than $ 1.1 billion. GameStop said it will use the proceeds for general corporate purposes, as well as investing in growth initiatives and maintaining a strong balance sheet.

2. Fed Chairman Powell will testify before the House of Representatives

Federal Reserve Chairman Jerome Powell speaks at a virtual press conference in Tiskilwa, Illinois on December 16, 2020.

Daniel Acker | Bloomberg | Getty Images

10-year government bond yields have rebounded since last week’s Fed-driven surge and brief decline to Monday’s February low. The 10-year yield ticked lower on Tuesday to around 1.47%. Fed chair Jerome Powell is going to a House panel this afternoon, and investors will be looking for more clues to policymakers’ rising inflation outlook and clues to two rate hikes in 2023.

In prepared testimony, Powell said the economy was growing but facing ongoing threats from the Covid pandemic. He also noted that inflation has risen noticeably, but the repeated price pressures will be temporary. The Fed has kept short-term lending rates near zero while buying at least $ 120 billion worth of bonds every month.

3. Bitcoin falls again, breaking below the important $ 30,000 level

This illustration from May 19, 2021 shows the virtual currency Bitcoin in front of a stock chart.

Given Ruvic | Reuters

Bitcoin fell more than 8% on Tuesday and was trading below $ 30,000. China’s renewed crackdown on the cryptocurrency industry has wiped nearly $ 300 billion in value from the entire digital currency market since Friday. As Beijing expanded its shutdown of Bitcoin mining operations, China’s central bank urged financial institutions not to offer any services related to crypto activities. Bitcoin is down more than 50% from its all-time high in April near $ 65,000.

4. EU opens antitrust investigation into Google’s advertising unit

A logo outside the Google Store Chelsea in New York, May 28, 2021.

Victor J. Blue | Bloomberg | Getty Images

The European Commission on Tuesday launched a new antitrust investigation into Alphabet’s Google to investigate whether the tech giant prefers its own online display ad technology services. As part of the investigation, the EU executive will assess the restrictions that Google places on the access of advertisers, publishers and other third parties to access data on user identity and behavior. Earlier this month, the French competition authority fined Google $ 262 million for abusing its market power in online advertising.

5. NYC Democrats will vote in Tuesday’s mayoral election

Mayoral candidates Eric Adams (L) and Andrew Yang

Getty Images

New York City Democratic voters go to the polls Tuesday to vote for their party’s mayoral candidate. Eight candidates – including the former presidential candidate Andrew Yang and the alleged top candidate Eric Adams – hope to replace the Democratic mayor Bill de Blasio, who can no longer run due to term restrictions. Tuesday’s Democratic primary, the winner of which is heavily favored against the GOP candidate in the November general election, is the first time the city has used a ranked selection. Voters will list their preferences in order for up to five candidates. Official results are not announced for weeks.

– NBC News contributed to this report. Follow the whole market like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.

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5 issues to know earlier than the inventory market opens Tuesday, June 15

Here are the top news, trends, and analysis investors need to start their trading day:

1. Stock futures are ahead of inflation data, Fed meeting

US stock futures were flat on Tuesday before a key government report on wholesale prices was released that could fuel or dampen inflation fears. Either way, investors will wait for signals from the Federal Reserve regarding their tolerance for inflation when the June two-day meeting of central bank policymakers ends on Wednesday.

CNBC’s latest Fed poll of economists, fund managers, and Wall Street strategists shows they believe the Fed’s cutback in massive Covid-era bond purchases won’t begin until January and the first near-zero rate hike in November will happen 2022.

With that in mind, the Nasdaq started the week up, propelling the tech-heavy index above its late April high. The S&P 500 saw a slight rise and another record close. The Dow broke a two-day winning streak. The 30-share average was 1.1% off its last record high in early May.

2. Government reports producer prices and retail sales in May

The 10-year government bond yield ticked lower Tuesday, trading around 1.49%, ahead of the Department of Labor’s May price index and May of the Department of Commerce’s retail sales. The headline PPI and core rate excluding food and energy both increase 0.5%. Economists expect retail sales to decline 0.6% in May. Without car sales, however, an increase of 0.5% is expected. Those data points and the Wednesday morning construction starts will be the final reports central bankers will need to consider before issuing their policy statement on Wednesday afternoon, followed by Fed Chairman Jerome Powell’s press conference.

3. USA and EU resolve 17-year Boeing-Airbus dispute; Suspend tariffs

US President Joe Biden (L) and French President Emmanuel Macron (C) talk to EU Commission President Ursula von der Leyen after the family photo at the start of the G7 summit in Carbis Bay, Cornwall on June 11, 2021.

PATRICK SEMANSKY | AFP | Getty Images

The EU and the US have settled a 17-year dispute over government subsidies for their respective aircraft manufacturers Boeing and Airbus. The two sides agreed to suspend the trade tariffs resulting from the dispute for five years. European Commission President Ursula von der Leyen said at her meeting with President Joe Biden in Brussels: “This meeting started with a breakthrough in aircraft.” Last week, CNBC reported that the EU was pushing Biden’s White House to reach an agreement to end the mutual tariffs on the matter imposed during former President Donald Trump’s tenure.

4. Biden travels to Geneva to meet Russian President Putin Put

This combination of file images, taken on June 7, 2021, shows then-Democratic presidential candidate Joe Biden speaking on the 17th during a speech in Darby, Pennsylvania, and team members attending the upcoming 2018 Pyeongchang Winter Olympics January 31, 2018 in the state residence Novo-Ogaryovo outside Moscow.

Jim Watson | AFP | Getty Images

Biden, who met with European allies at a G-7 summit in the UK and a NATO summit in Belgium this week, will meet with Russian President Vladimir Putin on Wednesday in Geneva, Switzerland. It is the third time that Geneva has hosted US and Russian leaders for talks. The first, in 1955, concerned then President Dwight D. Eisenhower and then Soviet leader Nikita Khrushchev. The second took place 30 years later between then President Ronald Reagan and Mikhail Gorbachev. Both meetings made progress in easing tensions. This time around, there is hope that the Biden-Putin meeting can bring about a modest improvement in the current US-Russia crisis on issues such as Ukraine, human rights and cyberattacks.

5. US nears 600,000 cumulative deaths from Covid-19

A woman and child look at Naming the Lost Memorials as US deaths from coronavirus disease (COVID-19) are expected to exceed 600,000 in Green Wood Cemetery in Brooklyn, New York, the United States, Jan. 2021.

Brendan McDermid | Reuters

With new daily Covid cases and deaths in the US dropping dramatically along with high vaccination rates, the nation was on the verge of recording a total of 600,000 deaths from the disease. According to the Johns Hopkins University, these are the most cumulative Covid deaths of all countries in the world. The US also has the highest total infections in the world, with nearly 33.5 million cases. However, with increases in Brazil and India, these countries follow the US in total deaths, with more than 488,200 in Brazil and about 377,000 in India. When it comes to cumulative infections, it’s about: India was number 2 with just under 29.6 million and Brazil was number 3 with around 17.5 million.

– The Associated Press contributed to this report. Follow the whole market like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.

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Your Tuesday Briefing – The New York Occasions

NATO leaders locked arms against China and Russia at their summit on Monday, as President Biden reaffirmed his commitment to the alliance. China’s growing influence and military might “present challenges,” the 30-nation alliance said.

This escalation of rhetoric from summits past reflected a new concern over how China intends to wield its rapidly growing military might and offensive cybertechnologies in the coming years.

NATO countries warned that China increasingly posed a global security problem, as well, signaling a fundamental shift in the attentions of an institution devoted to protecting Europe and North America, not Asia.

Putin: At the end of the summit, Biden discussed his approach to the Kremlin. “What I’ll convey to President Putin is that I’m not looking for conflict with Russia but that we will respond if Russia continues its harmful activities,” said Biden, who will meet with Vladimir Putin on Wednesday in Geneva. “And we will not fail to defend the trans-Atlantic alliance or stand up for democratic values.”

Prime Minister Boris Johnson of Britain announced on Monday that he would postpone by four weeks the easing of the latest lockdown in England, what British tabloids called “freedom day,” originally scheduled for June 21, after a spike in cases of the highly transmissible Delta coronavirus variant.

Restaurants and pubs in England will still have to observe social-distancing rules indoors and limit capacity, and nightclubs and theaters will remain closed. The decision will be reviewed in two weeks.

Britain’s vaccination campaign is among the most successful in the world, with about four-fifths of adults having received at least one shot. But those yet to receive their second dose remain susceptible to the Delta variant, more so than to earlier versions of the virus, scientists said.

By the numbers: Overall new cases in Britain are averaging about 8,000 per day and are doubling every week in the worst affected areas. Hospital admissions have begun rising.

Here are the latest updates and maps of the pandemic.

In other developments:

  • In a rare interview with Times reporters, Shi Zhengli, a top Chinese scientist who works at the Wuhan Institute of Virology, denounced as baseless suspicions that the virus had originated in the lab. “How on earth can I offer up evidence for something where there is no evidence?” she said.

  • The U.S. neared 600,000 recorded deaths from the pandemic, the highest known count of any country. For comparison, the country reached 500,000 deaths by February, 400,000 in January and 300,000 in December.

In the first days of Israel’s fragile new coalition government, ministers announced plans to repair Israeli ties with U.S. Democrats and the Jewish diaspora, investigate a stampede at a holy Jewish site on Mount Meron in April that killed 45 and permit a contentious far-right march through Jerusalem.

The initiatives highlighted the complexities and contradictions of the coalition, which is an unlikely alliance of the hard right, the left and the center, as well as — for the first time in Israeli history — an independent Arab party.

The far-right march, originally planned for last month, was among the reasons Hamas cited for firing rockets toward Jerusalem on May 10, setting off an 11-day air war between the militant group and Israel. The group vowed to respond if the march was allowed to go ahead.

Quotable: “The support of Christian evangelicals and other groups is important and heartwarming, but the Jewish people are more than allies, they are family,” the new foreign minister, Yair Lapid, said in his first speech. “Jews from all streams — Reform, Conservative and Orthodox — are our family.”

Related: After a year of protests outside Balfour, the prime minister’s house, Israelis are debating what role they played in Benjamin Netanyahu’s downfall.

  • An American father and son pleaded guilty in Tokyo on Monday to helping Carlos Ghosn, the former Nissan chief, flee Japan as he faced trial on charges of financial wrongdoing. Above, a vehicle transporting Michael Taylor and his son Peter Taylor for their trial at the Tokyo District Court.

  • Unusual activity at the Taishan nuclear power plant in China has drawn international attention, as two French companies involved in the plant acknowledged problems on Monday but said they could be handled safely. Officials at the power plant said no leak had been detected.

Rush hour has long ruled our lives, our cities, our tax dollars. But if more of us continue to work remotely, it won’t have to, freeing up space, resources and desire for bike lanes and better bus service, which could take even more cars off the roads.

Our T magazine editors compiled a sweeping guide to buying artwork, based on interviews with gallery owners, collectors and artists. Here’s their top advice for novice collectors.

Figure out what you like.

“Visit a lot of galleries and museum shows and meet with artists. I guess if I were to pick one word, it would be ‘exposure.’ And you never should limit yourself to art that you think you’re going to like.” — Ann Schaffer, patron and collector

Do your research.

“I believe in doing a bit of homework. Educating yourself and reading up about the kind of art you’re interested in is really essential.” — Denise Gardner, collector and board chair-elect at the Art Institute of Chicago

Go to a gallery and talk to people you meet.

“I don’t know any etiquette other than human kindness.” — Alexis Johnson, partner at Paula Cooper Gallery

Ask questions and establish contacts. (Expect a waiting list.)

“I like people who tend to be very open: ‘This is what I think I like, this is what I don’t know, this is where I’m starting.’” — Bridget Finn, co-founder of Reyes | Finn gallery

Success!

“You have to be sincere if you’re making inquiries and you’re asking about someone’s work, or you’re thinking about acquiring it. This is someone’s life’s work. This might be $1,000 to you, but this is someone’s soul.” — Jessica Wessel, lawyer and collector

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5 issues to know earlier than the inventory market opens Tuesday, June 1

Here are the key news, trends, and analysis investors need to start their trading day:

1. Dow jumps on the first day of June

The New York Stock Exchange welcomes Lightning eMotors (NYSE: ZEV) on May 24, 2021 to celebrate its transition to a public company.

NYSE

June was set for a positive start on Wall Street. Dow futures led on Tuesday with a gain of over 250 points of more than 0.7%. The Dow Jones Industrial Average and S&P 500 broke two-week losing streaks with weekly gains of around 1%. The Nasdaq rose 2% last week for its first two-week winning streak since mid-April. However, the Nasdaq bucked May’s uptrend, losing 1.5% and ending a six-month winning streak. Investors have their sights set on Friday’s May Labor Market Report, as well as the Federal Reserve Policy Makers’ Meeting on May 15-16. June.

A bitcoin logo displayed on a smartphone with stock market percentages in the background in this illustration dated April 26, 2021.

Omar Marques | SOPA Pictures | LightRakete | Getty Images

Bitcoin – less than 44% from April’s all-time high of $ 65,000 – traded below $ 36,000 on Tuesday. The world’s largest digital currency returned to levels not seen since February. Bitcoin crashed last month, tumbling more than 30% to around $ 30,000 on May 19. At Tuesday’s levels, however, it was still up 24% in 2021 and up 275% over the past 12 months.

2. AMC stocks add to last week’s strong rally

AMC Empire 25 in Times Square is open as New York City theaters reopen on March 5, 2021 for the first time in a year since the coronavirus shutdown.

Angela Weiss | AFP | Getty Images

AMC Entertainment rose again Tuesday, gaining 21% in pre-trading hours after selling more than 8 million shares to an investment firm. It is the latest in a series of capital increases for the ailing theater chain. AMC stock doubled last week on extremely high volume as retail investors re-piqued interest on Reddit’s WallStreetBets forum. AMC CEO Adam Aron tweeted early Tuesday in support of the stock sale.

3. Biden announces new efforts to narrow the racial wealth gap

U.S. President Joe Biden speaks with First Lady Jill Biden during a visit to Joint Base Langley-Eustis in Hampton, Va., Jan.

Ken Cedeno | Reuters

President Joe Biden will unveil new measures his administration is planning on Tuesday to address the racial wealth gap. During a trip to Oklahoma to commemorate 100 years since the Tulsa massacre, Biden will see an increase in the percentage of federal contracts for small, disadvantaged businesses, the repeal of two Trump-era housing rules, and an initiative to combat inequality in valuation announce of homes.

4. Elon Musk reveals the reason for the price increases for Tesla vehicles

5. SoFi will debut on Wall Street after the SPAC deal is closed

The Social Finance (SoFi) website on a laptop set up in the Brooklyn neighborhood of New York, United States on Friday, March 26, 2021.

Gabby Jones | Bloomberg | Getty Images

Social Finance is expected to debut as a publicly traded company on Tuesday after finalizing its merger with a SPAC backed by venture capital investor Chamath Palihapitiya last week. The transaction, announced in January with the special purpose vehicle Social Capital Hedosophia Corp V, valued SoFi at $ 8.65 billion. Palihapitiya, an early Facebook executive, recently took several companies public through SPACs, including Virgin Galactic.

– Reuters contributed to this report. Follow the whole market like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.

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5 issues to know earlier than the inventory market opens Tuesday, Could 18

Here are the top news, trends, and analysis that investors need to get their trading day started:

1. Dow futures popping on Walmart, Home Depot strength

Traders on the floor of the New York Stock Exchange.

Source: NYSE

2. Three major retailers outperformed earnings expectations for the first quarter

Shoppers wear masks while shopping at a Walmart store in Bradford, Pennsylvania on July 20, 2020.

Brendan McDermid | Reuters

Walmart’s earnings in the first quarter rose above estimates due to past grocery sales and e-commerce growth. The retailer said more shoppers went to its stores and website to do stimulus checks and prepare to reconnect when Covid cases drop and vaccination rates go up. Earnings per share were $ 1.69. Revenue grew nearly 3% to $ 138.31 billion. Walmart raised its outlook for the year.

A customer wearing a protective mask loads wood onto a cart at a Home Depot store in Pleasanton, California on Monday, February 22, 2021.

David Paul Morris | Bloomberg | Getty Images

Home Depot beat first quarter earnings and sales expectations as consumers swirled around their homes for more than a year after the pandemic. Net sales increased nearly 33% to $ 37.5 billion. Earnings per share were $ 3.86. Home Depot has not published an outlook for the 2021 financial year.

A man buys clothes in Macy’s department store in Herald Square in New York.

Trevor Collens | AFP | Getty Images

Macy’s shares rose around 5% in the pre-market on Tuesday, shortly after the department store chain reported a surprising profit in the first quarter as stimulus checks and vaccine rollouts gave consumers more money and more confidence to return to the mall and freshen up their wardrobes. Better-than-expected first quarter revenue increased 56% to $ 4.71 billion. Macy’s has also raised its financial outlook for the full year.

3. Amazon is reportedly in talks to buy MGM Studios for up to $ 9 billion

Daniel Craig plays James Bond in “No Time To Die”.

Source: MGM

According to several media reports, Amazon is in talks to buy Metro Goldwyn Mayer Studios worth up to $ 9 billion. MGM’s film and TV treasury includes the franchises James Bond and Rocky, as well as “The Handmaid’s Tale” and “Fargo”. These conversations, first reported by The Information, emerged after AT&T agreed to break out of its WarnerMedia film and television unit as part of a merger with Discovery.

4. Warren Buffett’s Berkshire Hathaway builds new Aon stake and strengthens Kroger

Warren Buffett at the Berkshire Hathaway Annual Meeting in Los Angeles, California. May 1, 2021.

Gerard Miller | CNBC

Warren Buffett’s Berkshire Hathaway made several changes to its stock portfolio last quarter, including adding a new bet on UK insurance company Aon and increasing its stake in grocery store owner Kroger. Berkshire also added its relatively new Verizon position and reduced its stake in Chevron, another new bet. Apple remained the largest single holding in Berkshire’s stock portfolio.

5. Michael Burry of ‘The Big Short’ reveals a bet against Tesla

Michael Burry attends the New York premiere of “The Big Short” on November 23, 2015 at the Ziegfeld Theater in New York City.

Jim Spellman | WireImage | Getty Images

Investor Michael Burry announced a short position on Tesla worth more than half a billion dollars in a filing for approval on Monday. Burry, whose company is Scion Asset Management, became famous for betting against mortgage securities prior to the 2008 financial crisis. Burry was featured in Michael Lewis’ book “The Big Short” and the subsequent Oscar winner of the same name. Tesla stock had a tumultuous 2021, down 18% at close of trading on Monday, and down nearly 36% from its all-time high of $ 900 on Jan. 25.

– Follow all market action like a pro on CNBC Pro. With CNBC’s coronavirus coverage, you’ll get the latest information on the pandemic.

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All eyes on Walmart+ when retailer reviews 1Q earnings Tuesday

From now on, everything for Walmart revolves around loyalty and loyalty.

One of the tools it will use to do this is Walmart +, a subscription service that the company launched in September.

Walmart is expected to provide a progress report on the program when it releases a earnings report on Tuesday. So far, the retailer hasn’t shared any subscriber numbers – and that probably won’t change this week – but investors and analysts will be listening for clues as to whether the program is helping the retailer deepen relationships with its customers and provide them with other types of services to sell. Holding on to market share and trips to the store has become more important, especially as consumers are vaccinated and allowed to revert to typical spending patterns prior to the pandemic.

Walmart + is part of the retailer’s plans to expand its business beyond retail and leverage its reach to make money in other ways, from advertising and financial services to healthcare. When customers sign up for the program, the retailer can learn more about their shopping list and preferences. These can then be converted into customer benefits like personalized coupons and new sources of income like targeted ads.

“This is another tool Walmart has to help drive loyalty and growth online,” said Michael Lasser, retail analyst at UBS. “And what’s important, it allows it [the company] to collect more data from its consumers. “

Increasing competition, falling stocks

Walmart, the largest grocer in the country, saw sales spike throughout the pandemic, especially on the internet, as Americans scaled back shopping trips and focused on groceries and other pandemic-related necessities, from soap to puzzles. Sales in the same store increased 8.6% in the last fiscal year in the US and e-commerce sales increased 79% year over year. Despite its size, the discounter faces numerous competitive threats from e-commerce forces like Amazon, low-cost retailers like Dollar General and Aldi, and third-party disruptors like Instacart and Fresh Direct.

In a corporate memo recently received from Recode, Walmart was open about the challenges facing grocery shoppers choosing competitors like Target, Publix and Albertsons, and how members who sign up for Walmart + can be held after their subscriptions expire .

Walmart hit a 52-week high of $ 153.66 on December 1. Since then, stocks have fallen to $ 139. Walmart’s fourth quarter profit resulted in a sell-off as company executives said the retailer would increase its investments to $ 14 billion and expected sales to weaken for the year. Stocks are down another 3% this year, which translates to a market value of around $ 391 billion.

Walmart’s revenue growth is expected to slow in the first quarter as pandemic-related spending eases. UBS expects the retailer’s US sales to grow 1.5% in the first quarter. That’s less than the 10% growth that Walmart saw in the first quarter a year ago, but higher than the average 3.6% drop in sales in the same store that UBS expects for consumables retailers.

The company’s earnings per share are projected to be $ 1.21 and revenues are $ 132.09 billion, based on consensus refinitive estimates

Walmart has not provided a specific guidance for the fiscal year, but expects net sales to increase in the low single digits and, excluding the effects of divestments, operating income and earnings per share to increase flat or slightly.

Walmart + is Walmart’s answer to Amazon Prime, but with its own perks and a value-driven twist. The subscription service costs $ 98 for a year or $ 12.95 for a month. It includes features like fuel discounts, free next and second day shipping, and unlimited deliveries of groceries and other merchandise from Walmart stores.

Still in its infancy

According to a recent survey by Consumer Intelligence Research Partners, Walmart + has grown to an estimated 8 to 9 million members. That is an increase from an estimated 7.4 million to 8.2 million members at the beginning of the year. Members spend an average of $ 1,100 per year on the Walmart website, according to a study by the company in April. When we surveyed customers in January, annual online spend increased by an average of $ 1,000.

When including in-store purchases, CIRP found that Walmart + members spend an average of $ 1,800 a year because they shop at Walmart.com 50% more often than non-subscribers.

Since launching the subscription service in the fall, Walmart has continued to optimize it. For example, in December, the company lowered an online member shipping minimum of $ 35. This move brought the retailer more in line with Amazon Prime and came during the holiday shopping season.

On an investor day in February, Doug McMillon, CEO of Walmart, said Walmart + is one of the ways the company can increase sales for new and existing customers. First, however, he said the company would focus on “delivering a quality experience” to customers before adding any other benefits and emphasizing membership growth.

“We don’t want to outdo ourselves and sell too many Walmart + memberships and have a customer experience that is below our expectations or expectations,” he said at the virtual event.

For example, he said, the retailer needs more capacity to keep up with orders for groceries and other stores being delivered to members’ homes – one of the main benefits of the program. The company is adding automated systems to dozens of stores to quickly pick items and fulfill more online orders.

“Over time, more of our customers will want Walmart + because it makes life better,” he said. “This relationship will drive repeat business and provide data that will enable us to serve them even better and be more personalized. It is an important part of our strategy.”

Ultimately, according to Lasser at UBS, the membership program could strengthen other areas of Walmart’s business – like serving ads that are more targeted and relevant based on consumer buying patterns.

Earlier this year, Walmart renamed its advertising business and announced ambitions to become one of the top 10 advertising platforms in the US over the next few years. According to the 2020 annual report, the advertising business accounts for less than 1% of annual sales.

UBS has listed Walmart stock as a buy. The price target for Walmart is $ 160, about 13% higher than stocks.

While the retailer faced tough comparisons a year ago, Lasser said customers were likely buying more goods like televisions, lawn tools, and clothing than basic household and grocery items like paper towels and milk. That could mean more profitable sales for Walmart, he said.

Charlie O’Shea, retail analyst at Moody, said he will be paying attention to the speed of online sales and whether sales have attracted discretionary items. He said he doesn’t expect the company to reveal Walmart + subscriber numbers, but rather expects to know what’s next for the program.

He said Walmart + is still in its infancy compared to Amazon Prime, which launched in 2005. Prime has grown to around 200 million Prime subscribers worldwide, said its CEO Jeff Bezos in April.

Even when Walmart shared subscriber numbers, O’Shea said the pandemic distorted buying patterns and “made it a difficult time to evaluate a membership program.”

“It’s a laboratory experiment that should work,” he said. “But I’m not sure if it will rise to the level of Amazon.”

Categories
Health

5 issues to know earlier than the inventory market opens Tuesday, April 20

Here are the top news, trends, and analysis investors need to get their trading day started:

1. Stocks fall after Dow, S&P 500 falls from record close

Traders on the floor of the New York Stock Exchange.

Source: NYSE

US stock futures fell Tuesday as investors factor in quarterly results of four Dow components and look forward to Netflix gains and an afternoon Apple product event. Apple is expected to introduce new iPads, iMacs and AirTags for device tracking. Tobacco supplies came under pressure after the Wall Street Journal reported that the White House could order tobacco companies to lower nicotine levels in all cigarettes.

The Dow Jones Industrial Average started the week after the record close on Friday. The S&P 500 also fell slightly from its previous record close. The Nasdaq lost 1% on Monday after shyly surfacing on Friday after the tech-heavy index’s record close in February. The 10-year government bond yield remained stable early Tuesday after rising above 1.6%. However, it remained below the last month’s high of 14 months.

2. Four Dow stocks are reporting gains, including J&J and IBM

Dow stocks Johnson & Johnson, Procter & Gamble and Travelers reported results before the bell. IBM, also a Dow stock, released quarterly results late Monday.

  • J&J surpassed first quarter earnings and sales estimates, including $ 100 million in sales of its Covid vaccine suspended in the U.S. as health officials investigate rare but serious blood clotting problems. CFO Joseph Welk told CNBC Tuesday that he hoped the “benefit-risk profile” for the company’s vaccine would have an impact. Shares fell in the pre-market.
  • P&G exceeded expectations for earnings and sales in the third quarter of fiscal as consumers maintained Covid buying trends like buying more detergents and starting to buy beauty products again. Shares fell in the pre-market.
  • Travelers reported better than expected results in the first quarter. The receipts were broadly in line with the estimates. The insurance giant increased its dividend and added $ 5 billion to its buyback program. In the pre-market the shares rose by 1%.
  • IBM achieved profits and sales in the first quarter that were above estimates. The enterprise technology and services provider saw revenue growth after four quarters of decline. In the pre-market the shares rose by almost 3%.

3. United Airlines is reporting a quarterly loss for the fifth consecutive year

Travelers arrive in Chicago, Illinois for flights at O’Hare International Airport on March 16, 2021.

Scott Olson | Getty Images

United Airlines shares fell 2.5% on the Tuesday prior to entering the market, the morning after the airline reported an above-expected loss of $ 7.50 per share in the first quarter, the fifth straight quarterly loss. Revenue of $ 3.22 billion was down nearly 60% year over year and fell short of estimates. Higher fuel costs and continued subdued demand due to Covid detracted from results. However, United expects profitability to pick up again later this year as Covid vaccinations surge and governments relax travel restrictions.

4. Elon Musk says the autopilot did not activate in the Tesla crash in Texas

A Tesla logo on a Model S is photographed at a Tesla dealer in New York.

Lucas Jackson | Reuters

Elon Musk denied that Tesla’s automated driving systems were involved in a fatal accident in the suburb of Houston, Spring, Texas on Saturday. The Tesla CEO tweeted on Monday: “Previously restored data logs show that autopilot was not activated.” Local police said no one was in the driver’s seat when the 2019 Tesla Model S turned off the road and went up in flames. The two men in the car died. Two federal agencies, the NHTSA and the NTSB, are working with local police to investigate the accident. Preliminary results are inconclusive.

5. A fortified city in Minneapolis awaits Chauvin’s verdict

Former Minneapolis Police Officer Derek Chauvin participates in the final skirmishes during his trial of second degree murder, third degree murder, and second degree manslaughter in the death of George Floyd with defense attorney Eric Nelson in Minneapolis, Minnesota on April 19, 2021 Still from video.

Pool via Reuters

Categories
Business

5 issues to know earlier than the inventory market opens Tuesday, March 30, 2021

Here are the top news, trends, and analysis that investors need to get their trading day started:

1. Stock futures fall after the Dow record when yields rise

Traders on the floor of the New York Stock Exchange.

Source: NYSE

2. The yield on 10-year government bonds hits the 14-month high

The yield on 10-year government bonds stood at 1.77% early Tuesday, hitting another high from January 2020 as the introduction of Covid vaccines and planned infrastructure spending raised hopes for a broad recovery in the US economy. However, the move also fueled inflation fears and put pressure on growth stocks, including many tech names, as higher interest rates undermine the value of future earnings and depress market valuations.

3. How Goldman and Morgan Stanley Avoided Archegos Loss

People are seen on Wall Street in front of the New York Stock Exchange (NYSE) in New York City on March 19, 2021.

Brendan McDermid | Reuters

In the Archegos meltdown sparked by the decline in ViacomCBS and other stocks last week, Goldman Sachs avoided losses as a result, CNBC’s Hugh Son reported. When Swiss Credit Suisse and Japanese Nomura said early Monday that they had discharged positions on behalf of Archegos, Goldman and Wall Street rival Morgan Stanley had already discharged their positions, according to knowledgeable people. Archegos is a family office founded by Bill Hwang, a former equity analyst at Julian Robertsons Tiger Management.

4. CDC chief warns that the US is heading towards fate in the fight against Covid

Dr. Rochelle Walensky, director of the Centers for Disease Control and Prevention.

Chip Somodevilla | Getty Images

The US is facing “impending doom” as daily Covid cases increase again, warned CDC Director Dr. Rochelle Walensky. “We can look forward to so much, so much promise and potential where we are, and so much reason to hope, but right now I’m scared,” she said in an emotional, sincere moment during the press conference on Monday morning. Even if vaccinations accelerate across the country, coronavirus hospital admissions will also rise and the death toll will begin to rise. Walensky urged the Americans to “hold out just a little longer”.

5. Biden instructs states to reintroduce coronavirus mask mandates

President Joe Biden speaks about the coronavirus disease (COVID-19) pandemic and vaccination status on the White House campus in Washington, United States, March 29, 2021 after meeting his COVID-19 response team.

Jonathan Ernst | Reuters

President Joe Biden followed his CDC director’s comments by calling on governors and local leaders to drop full mask mandates in order to reinstate orders. While pointing out that some states should wait to reopen their economies, he also condemned “reckless behavior” that is likely to cause more infections.

“We’re giving up hard-fought, hard-won profits,” said Biden in the press conference on Monday afternoon. “As much as we do in America, it’s time to do more.” He said failure to take the virus seriously “is exactly what got us into this mess in the first place” and could lead to more infections and deaths.

– Get the latest on the pandemic using CNBC’s coronavirus blog.