Rechercher dans ce blog

Tuesday, February 28, 2023

Alberta government projects $2.4-billion surplus for 2023-24 in pre-election budget - CBC.ca

The Alberta government is boosting funding for health, K-12 education, public safety and paying down debt as it wraps up the current fiscal year with an anticipated $10-billion surplus.

In the first budget tabled under Premier Danielle Smith, three months before a provincial election, the United Conservative Party government also signaled it will bring back legislation requiring balanced budgets, save for exceptional circumstances.

"We're securing the health and education of Albertans by increasing access to family doctors, surgeries and emergency services," Finance Minister Travis Toews said at an embargoed news conference on Tuesday. 

"And making sure our children and grandchildren have the education system they need to reach their full potential."

Should it pass as proposed, Alberta's $68.3-billion budget for 2023-24 would include about a four per cent spending increase from its forecasted expenses for the current fiscal year. 

It would leave the province with a $2.4-billion surplus by March 2024.

After three years of trying to rein in spending on public services and cut the size of the public service, the UCP government is increasing health-care spending by nearly four per cent, or close to $1 billion.

An estimate of full-time equivalent workers pegs the number of Alberta Health Services employees growing by nearly 3,600 from April 2023 to March 2024.

Although some of that cost is offset by an increase in federal government health transfers, the budget does not account for a new bilateral health agreement revealed on Monday.

The government's targets include more paramedics and ambulances, churning through more surgeries to reduce inappropriately long wait times, more home-care workers and expanding primary care.

Toews said everywhere he's travelled in Alberta, people tell him access to health care is an issue.

Growing urban school boards that have spent the past three years trying to educate more students while inflation drove up costs and funding remained nearly flat may have more room to breathe next year.

Operating funding from the government will rise by more than five per cent from the current year's forecast, Toews said.

The budget includes increased funding for student transportation – including new funding for private schools to bus students.

The government estimates the province's education sector will grow next year by 650 full-time equivalent teachers and 1,375 support workers, such as educational assistants and bus drivers.

Although the government pledges to increase K-12 education funding by nearly $685 million during the next three years, Alberta's education minister has previously said a contentious school funding formula will remain unchanged.

After three years of painful cuts to the province's post-secondary institutions, that funding will rebound, too. As part of a three-year plan to add 10,000 post-secondary seats across the province, public funding to schools will rise by about 0.6 per cent from the current year.

Although the province is capping average tuition increases at two per cent per year, starting next year, the budget shows that institutions' own revenues are still expected to pay for an increasing proportion of their costs.

After the government signalled an increased focus on public safety, the budgets of the ministries of justice and public safety and emergency services are collectively rising by 12 per cent next year.

Funding is targeted to pay more Crown prosecutors and judges, hire more sheriffs, run jails and fight organized crime. This will include "therapeutic living spaces," where inmates can get addictions treatment while incarcerated.

There is funding to expand First Nations-run police services, and $3 million for municipalities that want to explore establishing their own police service.

Although non-renewable resource revenues are expected to be lower in 2023-24, the $18 billion expected from royalties would still be the second-largest such windfall on record, if it happens, Toews said.

He did not say how Alberta would maintain public services at these levels, should the price of oil fall far below the estimated average price of $79 US per barrel next year.

New fiscal framework legislation coming

Toews said the government will also aim to enshrine balanced budgets in provincial law.

A bill to be tabled in the spring legislative sitting would only allow Alberta to plan for a deficit if revenues drop sharply and suddenly. 

The new "fiscal framework" would allow a government to post a year-end deficit if the cost of a disaster exceeds contingency funds, revenue is more than $500 million lower than expected, or the government is on the hook for a huge legal settlement.

The government would also be limited to increasing yearly expenses less than the sum of inflation rates and population growth.

The government also plans to create a new "Alberta Fund" to limit how it can spend any surpluses. 

Half of any extra cash would have to be dedicated to debt repayment. 

The rest would go in the Alberta Fund, and could be used only to repay debt, deposit into the Heritage Savings Trust Fund, or "one-time initiatives."

Toews told reporters those "one-time initiatives" would have to align with spending priorities the government lays out in the budget, and bristled at the suggestion it could be used as a slush fund.

Smith's government also plans to change how money is saved in the Heritage fund. 

Legislation is also coming that would require the government to keep all interest earned in that fund. Right now, the law says it should only keep enough interest to inflation-proof the fund.

Budget documents say the government intends to re-invest this year's and last year's interest into the fund, which is about a $2-billion injection. That would bring the fund's value to $20 billion by March 31, 2024.

Adblock test (Why?)


Alberta government projects $2.4-billion surplus for 2023-24 in pre-election budget - CBC.ca
Read More

Dow closes more than 200 points lower Tuesday, major averages end February with losses: Live updates - CNBC

Stocks close lower for the day and the month

The major averages fell on Tuesday to round out a tough month for the stock market.

The Dow Jones Industrial Average fell lost about 234.11 points, or 0.7% to 32,654.98. The S&P 500 shed 0.3% to end the day at 3,969.69, and the Nasdaq Composite closed 0.1% lower at 11,455.54.

For the month, the Dow ended 4.19% lower for the month and has dipped 1.48% year to date. The S&P 500 and Nasdaq Composite lost about 2.61% and 1.11% in February, respectively, but are still higher year-to-date.

— Tanaya Macheel

Gold and silver close out worst months in more than a year

Gold and silver posted their worst monthly performances in more than a year.

Gold closed down 5.58% for February. That's the worst month for the metal since June 2021, when it lost 7.02%.

Silver had its worst month since 2020, ending February down 11.6%. It last saw a bigger monthly drop in September 2020, when the metal tumbled 17.84%.

— Gina Francolla, Alex Harring

Morgan Stanley says noninvasive health monitoring has huge potential for Apple

Apple is making progress in monitoring blood glucose levels without a blood sample, according to a recent Bloomberg report. If the tech giant is successful, Morgan Stanley said the development has the potential to be a huge disruptor.

"Disruption will likely take time, but given Apple has form in displacing incumbents in fields with large [total addressable markets], we will continue to watch this technology and its speed of miniaturisation," Morgan Stanley analysts wrote in a research note.

The system reportedly uses lasers and measures the light coming back to the sensors to gauge the amount of glucose in the body's interstitial fluid. One of the biggest obstacles is how the components of the system can be shrunk down to be included inside an Apple Watch.

The companies with the most on the line are Abbott Laboratories, DexCom and Medtronic. All three make continuous glucose monitors, but DexCom is more intensely focused on the diabetes and health management market. Its stock tumbled last week when the news broke and in recent trading sessions it has yet to recoup all of its losses.

—Christina Cheddar Berk

Investors should look at credit markets, according to Insight Investment

While high interest rates are rattling the equity market, fixed-income credit markets could have their moment, according to Gautam Khanna, co-head of U.S. Multi Sector Fixed Income at Insight Investment. 

"With peak Fed rates arriving and becoming entrenched this year, equity markets will have to wait even longer for the 'Fed put' to return as central banks focus on keeping financial conditions tight," Khanna wrote on Tuesday. "While high rates will make life difficult for equities, it potentially creates a sweet spot for fixed income."

Khanna added that compelling yields are now achievable on lower and higher risk credit assets.    

"Investment  Grade  Credit  looks attractive – particularly the front end," he continued. "We believe an active approach can push this up to north of 6%. The inverted yield curve offers value at the front end."   

— Hakyung Kim

Buybacks below seasonal trends over the past month, BofA says

Stock buybacks are one of the core tenets of a bullish case for the market in 2023, as some expect buybacks to top $1 trillion for the first time.

However, corporate America will have to pick up the pace to set a new record, according to Bank of America strategist Jill Carey Hall.

"Corp. client buybacks accelerated but have been below typical seasonal trends for the last four weeks. Due to a strong start in Jan., corp. client buybacks YTD as a % of S&P 500 mkt. cap (0.044%) are tracking just below '22 records at this time (0.046%). But new buyback announcements have still been sparse," Carey Hall said in a note to clients on Tuesday.

One area where buyback announcements have been strong is the energy sector, where Occidental Petroleum on Monday announced a new $3 billion authorization for buybacks and a dividend hike.

—Jesse Pound

Analysts stay neutral on Zoom after earnings report

Pandemic-darling Zoom Communications posted better-than-expected earnings and a solid outlook Monday after the bell. But it wasn't enough to get some on Wall Street off the sidelines.

Earnings for the quarter came in at $1.22 per share, adjusted, which is above the consensus estimate of 81 cents from analysts polled by Refinitiv. Revenue also came in above expectations at $1.12 billion compared with the $1.1 billion anticipated by analysts.

While Zoom management issued a strong earnings outlook for the year, it also said growth would continue to slow as the company moves further away from its pandemic era boom.

"While the top-line story remains weak, things appear to have stopped getting worse," said UBS analyst Karl Keirstead in a note to clients Tuesday. "We remain Neutral-rated."

Just under 70% of analysts were neutral on the stock as of Tuesday, according to FactSet. Just over a quarter of analysts rate the stock as overweight or a buy, while just 6% recommend being underweight or selling. That's little changed from where analysts stood in January.

Credit Suisse was also neutral on the stock coming off the report, citing conflicting signals. The firm pointed to the company's contact center, phone business and potential within the artificial intelligence space as areas that could help shift the company's narrative positively in 2024.

"ZM continues to face the aftermath of the pandemic related pull forward of demand, particularly in the Online business," said analyst Fred Lee in a note to clients Tuesday. "But owing to the company's deep culture of innovation, ZM now has several potentially game-changing products in the market."

Morgan Stanley also remained equal weight, with analyst Meta Marshall noting the international business, free cash flows and enterprise as areas to watch going forward.

— Alex Harring

UBS says Fed’s rate hikes are creating “downside risks” for markets

The U.S. Federal Reserve's rate hikes have weighed on equity markets, according to UBS Financial Services. 

"We judge that the economy is in late-cycle, with the Fed continuing to hike rates and growth likely to slow. Tighter policy creates downside risks for markets," UBS senior U.S. economist Brian Rose wrote in a note to clients on Monday. 

The firm anticipates the S&P 500 will finish the year close to current levels, with better upside potential in cyclical markets outside of the U.S., specifically in emerging markets and Germany. 

"We prefer value over growth," Rose wrote. 

According to Rose, financial conditions have not tightened in line with the Fed's rate hikes. The Fed raised interest rates by 25 basis points on February 1, and suggested there will be further rate hikes in the months ahead.

— Pia Singh

Stephanie Link says Target is 'de-risked' following earnings

Target is still worth buying coming off its earnings report, according to Stephanie Link, chief investment strategist and portfolio manager at Hightower.

The big-box retailer topped analyst expectations for its quarter for the first time in a year. The company also gave a conservative full-year outlook, noting changing consumer habits.

"I bought some this morning, I'm going to be continuing to buy," Link said on CNBC's "Halftime Report." "Good quarter, and I think it's de-risked."

The stock was up nearly 3% in Tuesday's session.

hide content

Target

— Alex Harring

Morgan Stanley reiterates underweight rating for Fisker

Morgan Stanley reiterated its underweight rating for Fisker shares following the electric vehicle maker's disappointing fourth-quarter earnings. 

"Among an ever increasing range of EV manufacturers, what attracts us to Fisker is the company's focused strategy on design and engineering and supply chain," analyst Adam Jonas wrote in a Monday client note.

"While we like the story and strategy, a need for capital, the re-balancing of supply and demand in the EV space, and the ongoing deterioration in the macro environment drives our UW," he continued. 

The analyst maintained his price target of $4, implying a 48% downside from Monday's closing price.

Fisker shares have gained more than 6% in 2023, but have dropped 37% during the past 12 months.

hide content

Fisker stock

— Hakyung Kim, Michael Bloom

Shares of Arconic soar nearly 20% on reports it will be acquired by Apollo

Shares of Arconic jumped more than 19.8% after the Wall Street Journal reported that private-equity firm Apollo Global Management Inc. is in talks to acquire the aluminum products maker.

Apollo submitted a bid in February and has debt financing in place, according to the Journal's sources. The Pittsburgh-based company has a market value of about $2.2 billion. It also has a debt load of more than $1.5 billion, suggesting the deal would carry a "significant premium" if it goes through, the Journal reported.

Earlier Tuesday, Goldman Sachs downgraded Arconic to sell from neutral, citing a weak European demand outlook. The company's stock price is up more than 26% so far this year.

—Pia Singh

Canaccord Genuity, Mizuho Bank reiterate buy ratings on Tesla

Canaccord Genuity and Mizuho Bank reiterated their buy ratings on Tesla ahead of the electric vehicle maker's Analyst Day on Wednesday. 

Canaccord Genuity maintained its price target of $275, which suggests an upside of 32.4% from Monday's close. 

Mizuho also maintained its buy rating and a $250 price target on the automaker, adding that it sees continued strength in Tesla's market share in the near term. The bank noted, however, that cheaper competitor EV makers could be "potentially dilutive" to Tesla's share in the U.S. EV market.Competitor Rivian Automotive is reporting earnings after the closing bell today, and Chinese EV startup Nio is reporting on March 1. 

Mizuho managing director Vijay Rakesh said the bank is looking to Tesla's potential announcements of updates to its existing products, new announcements of a potential robotaxi and last-mile delivery van, updates on its battery and energy storage business, and progress on FSD Beta, the live-testing phase of Tesla's self-driving software.

– Pia Singh

Bernstein expects strong earnings report from Costco

Costco Wholesale has delivered exceptional results across all of its key performance indicators over the last two years, and Bernstein expects that strong, stable performance to continue.

The warehouse club reports its fiscal second-quarter earnings on Thursday. Bernstein, which has an outperform rating on Costco, adjusted its net sales growth estimates down to 7%, 11 basis points below consensus, after December and January's results came in at 7% and 6.9%, respectively. The firm also anticipates some margin recovery in the quarter.

"Negative surprises would be … surprising," analyst Dean Rosenblum wrote in a note Monday. "COST is less exposed to inventory-related risks, and TGT/WMT-type news seems unlikely. Plus we have the benefit of monthly sales releases, which give us advance insight into the quarter."

Meanwhile, Credit Suisse, which has a neutral rating on the stock, is forecasting earnings per share to come in at $3.11, versus the FactSet consensus of $3.21. It raised its comparable same-store sales estimate, excluding gas and currency, to 6.8% from 5%.

"We are raising our sales est. for FY2Q23, given traffic and sales strength seen in the company's December and January sales results, but we are cautious on flow-through, due to the elevated cost environment in general," analyst Karen Short wrote in a Monday note.

— Michelle Fox

Goldman Sachs downgrades Arconic, cites murky demand outlook

Shares of aluminum products maker Arconic fell nearly 5% following a downgrade to sell from a neutral rating by Goldman Sachs.

Analyst Emily Chieng cited a weakening demand outlook in Europe and the postponement of growth projects among the reasons for the downgrade.

Read more on the downgrade here.

hide content

Arconic shares fall on Goldman Sachs downgrade

— Samantha Subin

Oaktree Capital is raising $10 billion for leveraged buyout fund

Oaktree Capital Management announced Tuesday it's raising $10 billion for a new fund focused on leveraged buyout lending.

The manager plans to offer senior secured loans of $500 million or more to private equity-owned U.S. companies, typically with over $100 million in EBITDA, the company said in a release.

"The need for this type of lending is significant, but we anticipate limited competition given the retreat of banks from this area and the dearth of nonbank lenders with the requisite scale, flexibility and credit expertise," Howard Marks, Co-Chairman of Oaktree, said in a statement.

Oaktree said it believes this area of the market is especially attractive now because there's limited debt capital to finance large leveraged buyouts and there are record-high levels of committed private equity capital yet to be deployed.

— Yun Li

Citi downgrades Dick's Sporting Goods

Dick's Sporting Goods' stock slumped 2% following a downgrade to neutral from a buy rating by analysts at Citi.

"With DKS up against difficult multi-year comparisons in 2023 (esp 2H), it's tough to see how they can sustainably grow sales/EPS, particularly if demand slows in key categories of apparel/footwear (~55% of sales)," said analyst Paul Lejuez in a Tuesday note to clients.

Read more on the call from Citi here.

— Samantha Subin

Stocks making the biggest moves in midday trading

These stocks are among those making the biggest moves in midday trading:

  • Dish — Shares of the satellite provider lost 7.3% after the company disclosed that a previously disclosed "network outage" was the result of a cybersecurity breach. Bank of America also double-downgraded the stock to the stock to underperform from buy. The bank said Dish could fall nearly 20% as the company's timeline for its wireless network service build-out extends.
  • Norwegian Cruise Line Holdings — The cruise company fell 12% after reporting a wider-than-expected loss for the fourth quarter. Norwegian lost an adjusted $1.04 per share on $1.52 billion of revenue. Analysts surveyed by Refinitiv had forecast an 85 cents per share loss on revenue of $1.5 billion.
  • Advance Auto Parts — The automotive aftermarket parts company gained 3.3% after reporting better-than-expected revenue and fourth-quarter earnings of $2.88 per share, topping StreetAccount's estimate of $2.41.

Click here to see more stocks making midday moves.

— Pia Singh

Bond yields are close to a major psychological level that could really spook the stock market

The benchmark 10-year Treasury yield is hovering close to a key level that strategists say could give stock investors a fright.

The 10-year Treasury yield broke through resistance in recent sessions and is now a hair below the important 4% level. Yields, which move opposite price, have been rising through February after sliding in January. The yield was at 3.94% in late morning trading.

For stocks, a move to 4% could create more volatility.

For the complete analysis, check out the full story on CNBC Pro.

— Patti Domm, Tanaya Macheel

Cybersecurity, chip stocks outperform in February

With one trading day left in February, two sub sectors of the tech industry have notably outperformed this month.

  • The Global X Cybersecurity ETF (BUG) is up almost 2% in February, on track for its second-straight positive month. Palo Alto Networks, Rapid7 and Crowdstrike have all risen at least 15% this month.
  • The iShares Semiconductor ETF (SOXX) is up 1.4% in February, on track for its second-straight positive month. Nvidia, Monolithic Power, and Silicon Labs are all up at least 12% this month.

Outside of tech, transports has been another positive sector in February, with big gains from Avis Budget and FedEx.

— Jesse Pound, Gina Francolla

Dish Network shares fall on Bank of America double downgrade

Shares of Dish Network fell more than 6% after Bank of America double-downgraded the stock to underperform from a buy rating.

"Over the past 12 months, the company has had to navigate a prolonged period of expected and unexpected technological challenges and would not likely hit cruising speed until 2024, by our estimate," wrote analyst David Barden.

Read more on the call from the Wall Street firm here.

hide content

Dish Network shares fall

— Samantha Subin

Stock market this year may defy March’s usual history of positive gains

March is most often a positive month for the stock market, but this year it may bring more of the same turbulence that rattled investors in February.

Stocks are set to exit February with steep losses, with the S&P 500 down 2.3% for the month through Monday. The index is still up 3.7% for the year so far.

"February is the second worst month of the year, posting an average decline of 0.21%, which is the second worst after September," said Sam Stovall, chief investment strategist at CFRA. "However, March on average posts a gain of 1.1%, rising 64% of the time." March is the fifth-best month for the S&P 500, according to CFRA data going back to 1945.

For more, read the full story on CNBC Pro.

— Patti Domm, Tanaya Macheel

U.S. 10-year hits highest level since November

The yield on the 10-year U.S. Treasury note hit a high of 3.983% on Tuesday, its highest level since Nov. 10, when the note yielded as high as 4.117%. It was last higher by about 3 basis points at 3.955.

Treasury yields added to their sharp February gains as traders continued weighing the prospects of higher tighter monetary policy for longer than expected.

— Gina Francolla, Tanaya Macheel

Worries about the economy grew in February, Conference Board says

Consumers grew more pessimistic in February as worries over the longer-term outlook for the economy diminished, according to a Conference Board report Tuesday.

The board's Consumer Confidence Index fell to 102.9 for the month, down from 106 in January and below the 108.5 estimate from Dow Jones.

Though the Present Situation Index actually ticked up slightly to 152.8, the Expectations Index slid to 69.7, down from 76 in January. A reading below 80 in the expectations side is considered consistent with a recession in the next 12 months.

"Expectations for where jobs, incomes, and business conditions are headed over the next six months all fell sharply in February," said Ataman Ozyildirim, senior director, economics, at The Conference Board.

—Jeff Cox

Dow falls to start the final trading day of February

The Dow traded more than 100 points in early Tuesday trading, as traders wrapped up a tough month for stocks. The S&P 500 and Nasdaq hovered around the flatline.

— Fred Imbert

Indicators point to 10-year Treasury yield above 4%, says Katie Stockton

Technical indicators support a breakout above 4% for the 10-year Treasury yield, technical analyst Katie Stockton told CNBC's "Squawk Box" Tuesday.

The yield is currently hovering near 3.94%. Yields move inversely to prices.

"The next resistance that's meaningful is at the October 2022 high and that's about 4.34[%] for yields. We do think there's going to be progress towards that resistance level," the founder and managing partner of Fairlead Strategies said.

Meanwhile, the higher correlation between bitcoin and the Nasdaq 100 and other risk assets is expected to return now that equities are declining.

"If you look at bitcoin versus resistance, it's still in that 25,200 area. It needs to clear that level in order to look better because that would resolve the trading range to the upside and tell us that range is more likely a reversal pattern vs. a continuation pattern," she said.

— Michelle Fox

Bitcoin and ether on track for a positive February, despite mid-month slide

Bitcoin and ether rose slightly Tuesday morning and were on pace to end the month higher, despite slipping earlier in the month.

Bitcoin is on track for a roughly 1% February gain, according to Coin Metrics. Ether is up about 3% for the month. In January bitcoin posted a 38.39% gain and its best month since 2021.

hide content

Bitcoin and ether in February

Investors were spooked earlier in the month after what appeared to be the beginning of a potential regulatory crackdown on crypto businesses in the U.S. — including the Securities and Exchange Commission's enforcement action against Kraken, its Wells Notice of a future settlement against Paxos and the New York State Department of Financial Services' ordering Paxos to stop minting the Binance USD (BUSD) stablecoin.

However, crypto investors are Fed watch like much of the rest of the market, and economic data remains the biggest driver of cryptocurrency prices.

— Tanaya Macheel

Stocks making the biggest premarket moves

Here are some of the stocks making the biggest moves in premarket trading.

  • Dish Network — The satellite company dropped 6.3% amid its multi-day service outage and double-downgrade from Bank of America. Dish Network shares are down 13.5% in 2023 amid a 61.8% drop during the past 12 months.
  • Dick's Sporting Goods — The sporting-good retailer dropped about 2% after being downgraded to neutral from buy by Citi. The firm said it expects near-term gross margin pressure to continue.
  • Celsius Holdings — The energy-drink maker gained 3.9% after being upgraded by Credit Suisse to outperform from neutral. The Wall Street firm said the distribution agreement with Pepsi is going well and the long-term potential is high.

To see more premarket movers, read the full story here.

— Michelle Fox

Target rises after earnings

Target shares were higher by 1% in early trading after the retailer said earnings per share for the fiscal fourth quarter was $1.89, well above the $1.40 consensus of analysts gathered by Refinitiv. Revenue came in at $31.4 billion, also above the $30.72 billion Wall Street consensus estimate from Refinitiv. Target also said holiday-quarter sales rose about 1% from a year ago.

The gain was muted as Target said it expects full-year earnings per share to be in a range of $7.75 to $8.75. Wall Street analysts were expecting a consensus $9.23 per share, according to StreetAccount estimates.

hide content

Target 1-day

-John Melloy

Global market breadth remains solid despite February pressure, BofA says

Bank of America chart analyst Stephen Suttmeier noted that, while stocks have been under pressure this month, global breadth is holding up well.

"Strong market breadth for global equity indices suggests a broad-based rally, which is bullish in the face of a challenging market for equity investors in February," Suttmeier said in a note Monday.

"The weekly advance-decline (A-D) line of 73 country indices hit new highs in February. Sustaining this move to new highs would rhyme with past bullish breakouts for this A-D line from November 2020, March 2019, December 2016, January 2013 and March 2010," he said.

Global stocks were slated to end February with a loss. The iShares MSCI ACWI ETF — which tracks the All Country World Index — was down 2.8% for the month through Monday's close. The S&P 500, meanwhile, has lost 2.3% in February.

hide content

ACWI in February

CNBC Pro: Semiconductors, A.I. and more: These top-rated ETFs offer a way to play tech's hottest trends

Two tech themes have taken Wall Street by storm so far this year.

One is the return of semiconductor stocks, as demand bounces back for chips; the other is artificial intelligence, following the buzz surrounding chatbot ChatGPT.

CNBC Pro screened for the highest-rated ETFs with exposure to semiconductor and/or AI-related stocks (among others) using Morningstar data. The resulting funds all received a four- or five-star rating by Morningstar, and have performed well over the past three years.

CNBC Pro subscribers can read more here.

— Weizhen Tan

CNBC Pro: 'Pretty bearish on Tesla': Market pro says price cuts will hit the EV giant's share price

Occidental Petroleum shares decline on earnings miss

Occidental Petroleum's stock slipped 1% after the bell after posting a miss on the top-and-bottom lines for the fourth quarter.

The energy giant reported adjusted earnings of $1.61a share on $8.33 billion in revenue. Refinitiv estimates called for EPS of $1.80 on revenues of $8.66 billion.

The company also hiked its dividend by more than 38% to 18 cents a share and announced a $3 billion share buyback plan.

hide content

Occidental Petroleum's stock falls on earnings miss

— Samantha Subin

Where the major averages stand ahead of final trading day of February

This is where all the major averages stand as February trading nears an end.

Dow Jones Industrial Average:

  • Down 3.5% in February
  • Down 0.8% so far this year
  • 11% % of record high
  • 80.57% % off pandemic low

S&P 500:

  • Down 2.3% this month
  • Up 3.7% in 2023
  • 17.36% off record high
  • 81.68% off pandemic low

Nasdaq Composite:

  • Down 1% in February
  • Up 9.6% year to date
  • 29.27% off record high
  • 72.92% off pandemic low

— Samantha Subin

Zoom shares pop on strong fourth-quarter results

Shares of Zoom Video popped 8% in extended trading after fourth-quarter earnings and revenue surpassed Wall Street's expectations.

The video communications company reported earnings of $1.22 a share on $1.12 billion in revenue. Analysts surveyed by Refinitiv had expected earning of 81 cents per share on revenues of $1.10 billion.

Despite expectations for slowing growth this year, Zoom also shared better-than-expected guidance for the current period.

hide content

Zoom shares rise on earnings results

— Samantha Subin, Jordan Novet

Stock futures open slightly higher

Stock futures opened slightly higher in overnight trading Monday.

Futures tied to the Dow Jones Industrial Average gained 45 points, or 0.14%, while S&P 500 and Nasdaq 100 futures added 0.13% and 0.15%, respectively.

— Samantha Subin

Adblock test (Why?)


Dow closes more than 200 points lower Tuesday, major averages end February with losses: Live updates - CNBC
Read More

Watch Russian tank operator run to safety after being attacked - CNN

Watch Russian tank operator run to safety after being attacked

CNN's Erin Burnett details the desperation and brutal reality of Russian soldiers as war rages on in Ukraine.

01:18 - Source: CNN

Adblock test (Why?)


Watch Russian tank operator run to safety after being attacked - CNN
Read More

Monday, February 27, 2023

More snow in store for parts of Vancouver Island - CBC.ca

More snow is in the forecast for Vancouver Island after a blast of wintry weather over the weekend, according to Environment Canada.

Snowfall warnings are in effect for the Malahat Highway near Victoria, the Southern Gulf Islands and the eastern coast of the Island on Monday. The weather agency said it expects between 10 and 15 centimetres.

"An area of low pressure over the Pacific Ocean will produce an intense band of snow over southern Vancouver Island," an advisory read. "The snow will begin [Monday] morning and continue until Tuesday morning."

Travellers on the Malahat Highway are warned to drive carefully.

The fresh snow comes after parts of Vancouver Island and the Sunshine Coast received up to 40 centimetres on Saturday into Sunday. 

On the mainland, Metro Vancouver and the Fraser Valley received between 10 and 25 centimetres, while northern B.C. and the central Interior saw up to around 30 centimetres in some areas.

Several municipalities broke daily snowfall records on Sunday, Environment Canada said. 

Abbotsford saw 19.3 centimetres, more than tripling the old record of 6.6 set in 1956. Kamloops saw 11 centimetres, breaking the record of 8.4 from 1974.

Williams Lake broke its 2011 record of 6.6 centimetres with 11.2 falling on Sunday.

Weather warnings outside of the Island had lifted by Monday.

"We had a system approach from the Gulf of Alaska [that] slid all the way down the coast, giving us lots of heavy snowfall," said Bobby Sekhon, a meteorologist with Environment Canada.

Sekhon said temperatures on B.C.'s South Coast and Vancouver Island were expected to rise Sunday but dip back below freezing at night, which could cause a freeze-thaw cycle and occasional flurries. He said this could lead to slippery road conditions.

Traffic at Vancouver International Airport was back to "98 per cent of regular operations" on Monday after the snow led to hundreds of cancellations over the weekend, a spokesperson said. Thirteen flights were cancelled Monday, "mostly because of other cities being impacted."

Adblock test (Why?)


More snow in store for parts of Vancouver Island - CBC.ca
Read More

DeSantis signs bill that gives him more control of Disney's special district - CNN

CNN  — 

Appearing at the doorstep of Walt Disney World, Florida Gov. Ron DeSantis signed a bill Monday that gives him new power over Disney, effectively punishing the entertainment giant for speaking out against the Republican’s political agenda.

The new law amounts to a state takeover of the Reedy Creek Improvement District, the government body that has given Disney unique powers in Central Florida for more than half a century. It allows the governor to replace the district’s existing board – mostly people with ties to Disney – with a five-member body that he hand-picks.

“Today, the corporate kingdom finally comes to an end,” DeSantis said Monday at a Reedy Creek fire station in Lake Buena Vista, Florida. “There’s a new sheriff in town and accountability will be the order of the day.”

DeSantis announced his appointments to the reconstructed board, including Martin Garcia, a Tampa lawyer and prolific Republican donor whose private investment firm contributed $50,000 to DeSantis’ reelection, and Bridget Ziegler, a Sarasota County School Board member who was a co-founder of the conservative organization Moms for Liberty and the wife of Christian Ziegler, the new chairman of the Republican Party of Florida.

The new board is scheduled to meet next week, DeSantis said, “so buckle up.”

In a statement to CNN after the bill passed the state legislature earlier this month, Jeff Vahle, the president of Walt Disney World Resort, said the company was “ready to work within this new framework, and we will continue to innovate, inspire and bring joy to the millions of guests who come to Florida to visit Walt Disney World each year.”

The move against Disney comes nearly a year after the company spoke out against a Florida bill – which DeSantis later signed into law – to restrict certain classroom instruction about sexual orientation and gender identity. In March of last year, as outrage against the legislation spread nationwide, Disney released a statement vowing to help get the law repealed or struck down by the courts and saying the company was “dedicated to standing up for the rights and safety of LGBTQ+ members of the Disney family, as well as the LGBTQ+ community in Florida and across the country.”

DeSantis responded by calling on lawmakers to strip Disney of its special governing power, which they did last year, ending a longstanding arrangement that allowed the company to build its sprawling, iconic Orlando-area theme parks into an international tourist destination and one of the state’s most critical economic engines.

Lawmakers, though, changed course amid concerns a disruption of Reedy Creek’s debt and contracts violated the state law that created the special tax district. Instead, DeSantis appointees will be in charge of the district’s long-standing powers to tax, build and borrow money for projects and services around Disney’s vast footprint in Orange and Osceola counties. It also renames Reedy Creek as the Central Florida Tourism Oversight District, restricts its use of eminent domain and removes never-used powers that could have allowed Disney to build its own airport or a nuclear plant.

The new future for Reedy Creek passed the GOP-led state legislature earlier this month in a special session.

“Disney came out against something that was really just about protecting young kids, and making sure that students are able to go to school learning to read, write, add, subtract, and not having a teacher tell them that they can change their gender,” DeSantis said Monday. “And I think most parents agree with that. But you know, that was only a mild annoyance. I think that what we came to realize after that dust settled on that was you clearly had a movement within the corporation itself.”

The saga with Disney has been central to the narrative around DeSantis’ ascent to the top of potential 2024 Republican presidential contenders, and a demonstration of the lengths the Republican has gone to push his “war on wokeness.” In taking on Disney, DeSantis stunned one of the state’s largest and most influential employers. With an army of lobbyists and millions in past campaign donations to Republican lawmakers, it often wielded much influence in Florida’s halls of legislative power.

While the move was celebrated by conservative media, several of DeSantis’ would-be GOP rivals have been critical. Former Vice President Mike Pence said the conflict with Disney was “beyond the scope of what I as a conservative, limited government Republican would be prepared to do.” And New Hampshire Gov. Chris Sununu said penalizing businesses for political speech set “the worst precedent in the world.”

DeSantis has shrugged off such criticism. Monday’s bill signing event turned into a lengthy takedown of Disney that extended beyond its foray in Florida’s legislative activity. DeSantis featured speakers who assailed the company’s vaccine and mask policies, its treatment of firefighters and its more recent entertainment offerings.

Adblock test (Why?)


DeSantis signs bill that gives him more control of Disney's special district - CNN
Read More

More snow on the way for B.C.’s South Coast, affecting Tuesday’s commute - Global News

More snow is on the way for parts of B.C.’s South Coast Monday and Tuesday.

Global BC meteorologist Mark Madryga said the next weather pattern is due to a low-pressure trough slicing northwards in the South Coast.

This will bring a “slushy mix of snow and rain” for most areas Monday afternoon and evening.

“Amounts especially at higher levels of Metro Vancouver will be in the order of two to four centimetres,” Madryga said.

“Another band of mostly wet snow will advance into the Lower Mainland during Tuesday morning and the commute, with a further two to five centimetres of accumulation likely, again especially at higher elevations.”

Click to play video: 'East Metro Vancouver digs out from the snow'

East Metro Vancouver digs out from the snow

Read more: Winter snowstorm batters much of B.C.

Madryga added that clearing will occur later on Tuesday and some of the snow will melt but temperatures will then drop again, meaning roads could be slick for the Wednesday morning commute.

Potential for falling snow during Tuesday morning commute,
Potential for falling snow during Tuesday morning commute,. Global SkyTracker
Forecast of snowfall amounts this afternoon through Tuesday morning.
Forecast of snowfall amounts this afternoon through Tuesday morning. Global SkyTracker
Forecast of snowfall amounts this afternoon through Tuesday. Global SkyTracker

In addition, a snowfall warning is in effect for east Vancouver Island from Duncan to Nanaimo and from Nanoose Bay to Fanny Bay and for the Malahat Highway from Goldstream to Mill Bay.

Between 10 to 15 centimetres of snow is expected to fall from late Monday morning to Tuesday warning.

Drivers are being urged to use caution and only travel if necessary.

Weather alerts in effect for east Vancouver Island Monday and into Tuesday.
Weather alerts in effect for east Vancouver Island Monday and into Tuesday. Global SkyTracker

&copy 2023 Global News, a division of Corus Entertainment Inc.

Adblock test (Why?)


More snow on the way for B.C.’s South Coast, affecting Tuesday’s commute - Global News
Read More

Countdown to TradeCentre: James van Riemsdyk watch heats up after Timo Meier trade - TSN

Sunday, February 26, 2023

February 26, 2023 Russia-Ukraine news - CNN

A Ukrainian Army serviceman waits for an order near Bakhmut, on Thursday.
A Ukrainian Army serviceman waits for an order near Bakhmut, on Thursday. (Yasuyoshi Chiba/AFP/Getty Images)

There is one thing that Russian and Ukrainian accounts agree upon: The fighting around the eastern city of Bakhmut is relentless, and the casualties — on both sides — are high. 

A fierce fight in the streets: Until a few weeks ago, the battle was waged largely with tanks, artillery and mortars. But Bakhmut has increasingly become a field of urban combat, with every street and building in the suburbs and surrounding villages contested.

Russian forces — including fighters from the Wagner private military company — have edged toward the center of the city from the east, south and north.

Ukrainian units have launched frequent counter-attacks to try to reclaim some territory and preserve their precarious access to Bakhmut from the west. That access has become gradually more complicated as routes into the city have come under control of Russian forces.

Ukrainian soldiers on unofficial social media accounts have said they are increasingly reliant on dirt roads to reach — and leave — Bakhmut, tracks that may become impassable as the frost turns to mud.

Russia aims to encircle Ukraine's troops: Rather than drive directly toward the city center, Wagner groups have sought to surround the city in a wide arc from the north. In January, the groups claimed the nearby town of Soledar, and have since taken a string of villages and hamlets north of Bakhmut.

That process appears to have gone a step further in recent days, with Wagner apparently reaching the village of Yahidne immediately to the northwest of Bakhmut. The village sits on a route that, until recently, was used by Ukrainians to get in and out of the city.

The next target for the Russians could be the town of Chasiv Yar, a straggling collection of Soviet-era apartment blocks, sitting on high ground which has already been extensively damaged. Ukrainian officials said it came under artillery fire again Sunday.

How long will Ukraine defend the city? The conundrum for the Ukrainian military is whether it remains feasible to continue defending Bakhmut.

At the beginning of February, Ukrainian President Volodymyr Zelensky said, "No one will surrender Bakhmut. We will fight as long as we can. We consider Bakhmut our fortress."

More recently, in an interview with Italian media, Zelensky's tone was slightly different. “It is important for us to defend (Bakhmut), but not at any price and not for everyone to die,” he was quoted as saying.

If Bakhmut can no longer be held, it will be important to note where Ukrainians choose to draw their next defensive lines. The cities of Kostiantynivka and Kramatorsk are not far to the west of Bakhmut and have already registered an uptick in Russian missile attacks.  

For now, there's no sign of a withdrawal of Ukrainian units from the Bakhmut area, and the brutal fighting wears on.

Adblock test (Why?)


February 26, 2023 Russia-Ukraine news - CNN
Read More

No more clumpy lipgloss: How TikTok's 'deinfluencing' trend became a marketing tactic - CBC.ca

Just a few weeks ago, Lauren Rutherglen's 10,000 TikTok followers would have expected advice on what beauty products to buy.

But as she rummaged through the creamy Glossier eyeshadows, Ilia serums and Charlotte Tilbury liquid bronzers in her drawer, the Calgary-based content creator was reminded of the expensive but disappointing products that the Internet had convinced her she needed. 

So she made a "deinfluencing" video — a TikTok-coined term that describes the rejection of viral, cult-favourite beauty or lifestyle products (typically associated with influencer culture) in favour of more affordable choices. 

"I just wanted to share my opinion on things that I was influenced as a consumer to buy and just didn't really like," Rutherglen told CBC News. 

She doesn't mince words during her TikTok video, which has upped her follower count by a few thousand. "It dries out, it's hard to blend. I hate it. I hate it so much," she says of one product. Wrinkling her nose at another, she claims that it "literally smells like rotting Play-Doh."

But deinfluencing is a content strategy in itself, according to the Canadian creators, industry and marketing experts who spoke with CBC News. As the cost of living goes up, content creators are striving to build trust with audiences who can no longer afford the expensive products that some influencers get paid up to half a million dollars to promote.

A marketing strategy in itself

A young woman leans against a wall.
Lauren Rutherglen, a Calgary-based content creator, made a deinfluencing video that garnered thousands of likes. 'I just wanted to share my opinion on things that I was influenced as a consumer to buy and just didn't really like,' Rutherglen said. (Maya Francis)

The deinfluencing hashtag on TikTok had accumulated over 228 million views as of Feb. 23.

Some TikTokers directed their followers away from trendy, pricey products that they felt were a disappointment or a waste of money, instead recommending cheaper, more functional alternatives (which they might still be paid to promote).

Why get the $50 Stanley tumbler when you can just get a water bottle, they asked? Why do you need $175 Ugg minis if you can buy a regular pair of boots? Why buy Kim Kardashian's shapewear products if you can get inexpensive pantyhose?

A curated social media feed can serve the same purpose as a fashion magazine or a beauty catalogue, and users tend to follow people they trust will recommend high-quality products, said Jess Hunichen, the co-founder of Toronto talent management agency Shine. 

"Trust is the number one commodity that these influencers have," Hunichen said. Her firm represents about 250 people working in the influencer industry. "If they lose that with their audience, this whole thing goes away for them and they don't want that."

Deinfluencing is a tool that can build that trust, she added. It's not unlike the in-person retail experience, where shoppers at a cosmetics store or a clothing boutique might seek advice or validation from a salesperson working the floor.

"When you have a sales associate say to you that you look amazing in everything you like, maybe they just want to sell," she said. But taking a critical approach might have a more powerful — and lucrative — impact.

"When they say to you, 'you know what, this looks incredible,' [or] 'I don't love that colour on you,' you immediately trust them," because they're willing to give you an honest answer, Hunichen said.

Rutherglen, who says she has acne and textured skin, uses her platform to connect with others who share her need for specialized products — but don't want to be duped by an advertising or branding scheme.

Pedestrians walk by a large Sephora cosmetics store.
Deinfluencing is a tool that can build that trust, said Jess Hunichen, the co-founder of Toronto talent management agency Shine. (Mary Altaffer/The Associated Press)

"A lot of businesses [want] honest reviews from people that have communities of people who trust what they're saying," said Rutherglen. She doesn't make an income from her social media, nor does expect to receive a sponsorship deal from the companies she criticized in the video — but it's all water under the bridge.

"I would rather burn these bridges and be honest with everyone then sell something that I've either altered to look good or I just really don't like and don't use, because then [my followers will] be in the same boat that I was after purchasing all those products," she added.

'I don't think anything's accidental'

A woman wearing glasses poses for a professional headshot.
'I think the message isn't really about consuming less, but just consuming maybe more thoughtfully or intentionally,' said Lia Haberman, an adjunct professor of influencer marketing at the University of California Los Angeles Extension. (Submitted by Lia Haberman)

Several critics have questioned whether deinfluencing indicates a rejection of the influencer industry, or whether the trend could backfire on content creators whose shunning of consumer culture leave a bad taste in the mouth of their sponsor brands.

The industry was worth about $16.4 billion in 2022, with the industry expected to grow to $21.1 billion in 2023, according to a report from research firm Influencer Marketing Hub. The experts featured in this story ballparked it around the same, with projections to keep growing.

"I don't think anything's accidental. I think influencers are very strategic, very intentional," said Lia Haberman, a Canadian adjunct professor of influencer marketing at the University of California Los Angeles Extension, who wrote about the deinfluencing phenomenon in a recent article.

"It's more of a curation strategy versus any kind of anti-consumer message," added Haberman. "So they'll tell you, 'Don't buy this mascara, but I love this one.' … I think the message isn't really about consuming less, but just consuming maybe more thoughtfully or intentionally."

Rutherglen said that the trend is taking off as people who are worried about their employment status and a possible recession are making more thoughtful spending choices. "If you're wanting to purchase something, you want it to be something that's of value and reflects what you worked for and the money you earned."

A photograph of makeup models is displayed in a cosmetics store.
Several critics have questioned whether deinfluencing indicates a rejection of the influencer industry, or whether the trend could backfire on content creators whose shunning of consumer culture leave a bad taste in the mouth of their sponsor brands. (Robert Bumsted/The Associated Press)

Jess Hankin, a Vancouver-based content creator who earns an affiliate commission from Amazon for her TikTok videos, agreed. She pointed to an incident in which the cosmetics company Tarte sent dozens of influencers on a glitzy three-day, all-inclusive trip to Dubai this past January.

"Sending a whole bunch of influencers just to have this little glamorous Instagram kind of life somewhere else, where so many of us are like, 'dude, my mortgage is through the roof,' or, 'I can't even afford to buy a house,' is just not something that a lot of people want to see right now."

Honesty is an influencer's best currency

A woman with brown hair in a colourful costume sings into a microphone while standing powerfully on a stage lit bright red.
Doja Cat performs at the Coachella Music & Arts Festival at the Empire Polo Club on April 24, 2022, in Indio, Calif. The singer last year complained about having to write a jingle for Mexican fast food joint Taco Bell on her social media feeds. (Amy Harris/Invision/The Associated Press)

The rush to "deinfluence" viral Internet products began around the same time that an American beauty influencer named Mikayla Nogueira posted a TikTok touting the powers of a L'Oreal mascara. "This looks like false eyelashes," she said during the L'Oreal-sponsored video. 

The criticism was swift: she was wearing actual false lashes, many of her followers said, and deliberately misleading her audience into buying the product.

"When you embrace a brand too fully, it can make it seem like you're just embracing them or endorsing them because you have a contract and you know you're sponsored by a brand," said Haberman. 

A recent marketing move by Taco Bell shows that brands might be warming up to a reverse psychology-style of promotion, she added. The Mexican fast food joint paid singer Doja Cat last year to complain about having to write a jingle for their brand on her social media feeds. It was negative attention — but attention nonetheless

Taco Bell's move "was deinfluencing before deinfluencing," Haberman said. "Most companies are not that comfortable with the idea of, 'we're going to pay an influencer to complain about us or to say anything negative at all about our product or our brand.'"

"But I think kind of the braver, bolder, more progressive companies on social media are going to jump on this and find a way to turn it to their advantage."

Adblock test (Why?)


No more clumpy lipgloss: How TikTok's 'deinfluencing' trend became a marketing tactic - CBC.ca
Read More

Lupus and other autoimmune diseases strike far more women than men. Now there's a clue why - CTV News

WASHINGTON - Women are far more likely than men to get autoimmune diseases, when an out-of-whack immune system attacks their own bodies -...