Advertisements


Noteworthy Friday Option Activity: UAA, LITE, NDLS

Stock Options Channel.....»»

Category: topSource: redinewsMay 1st, 2021

ETFs to Bet On as Fed Turns Hawkish, Signals Tapering

The Federal Reserve Chair Jerome Powell kept the interest rates near zero at 0-0.25% but signaled bond-buying tapering ahead followed by interest rate hikes as early as next year. In the FOMC meeting that concluded on Sep 22, the Federal Reserve Chair Jerome Powell kept the interest rates near zero at 0-0.25% but signaled bond-buying tapering ahead followed by interest rate hikes as early as next year.The central bank is expected to begin scaling back the monthly bond purchases as soon as November and complete the process by mid-2022. This is because it expects the Delta variant of the coronavirus, which has dented economic activity in the recent months, to have a short-lived effect on the recovery. Per the officials, the economy will likely make “substantial further progress” by the end of the year, a threshold needed for the central bank to begin slowing the pace of asset purchases (read: Buy the Dip With These Top-Ranked ETFs).Fed Chair Jerome Powell reiterated that he believes the U.S. economy has already surpassed the central bank's goals for inflation, and said a "reasonably good" September jobs report would indicate that the Fed's employment goals to begin tapering had been satisfied as well. Notably, the central bank has been buying $120 billion per month of Treasuries and mortgage-backed securities since the start of the COVID-19 crisis.The policy statement also revealed that nine of 18 Fed policymakers foresee a liftoff in interest rates next year, compared to seven policymakers in June. The median dot also projects three to four total rate hikes by the end of 2023. Through the end of 2024, the median FOMC member sees six to seven total rate hikes.Given this, investors should continue to focus on areas/sectors that will benefit the most from the Fed’s tightening policy. Here, we have detailed four of these and their ETFs below:FinancialsA rising interest rate scenario is highly profitable for the financial sector. This is because the steepening yield curve would bolster profits for banks, insurance companies, and discount brokerage firms. A broad way to play this trend is with Financial Select Sector SPDR Fund XLF, which has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.This is the most popular financial ETF in the space with AUM of $40 billion and an average daily volume of about 43 million shares. The fund follows the Financial Select Sector Index, holding 65 stocks in its basket. It is heavily concentrated on the top two firms, making up for double-digits share each while other firms hold no more than 7.2% share. In terms of industrial exposure, banks take the top spot at 37.5% while capital markets, insurance, and diversified financial services make up for double-digit exposure each. The fund charges 12 bps in annual fees and is up 27.5% in the year-to-date timeframe (read: 401(k) Balances at All-Time Highs: 6 ETFs to Buy).Consumer DiscretionaryConsumer discretionary stocks also seem good bets. This is because a tight policy is seemingly the result of a pickup in economic growth supported by solid job growth, wage growth and increased lending activity that result in higher spending power. One exciting pick in this space can be Vanguard Consumer Discretionary ETF VCR, which has a Zacks ETF Rank #1 with a Medium risk outlook (read: ETF Areas to Gain From the Upcoming Holiday Shopping Season).This fund follows the MSCI U.S. Investable Market Consumer Discretionary 25/50 Index and holds 296 stocks in its basket. It has heavy concentration on the top firm – Amazon AMZN – at 23.5% share while the other firms hold no more than 10% of the assets. The product has managed $6.7 billion in its asset base and charges 10 bps in annual fees. In terms of industrial exposure, Internet & direct marketing, retail takes the largest share at 27.6% while automobile manufacturers, restaurants, and home improvement retail round of the next three spots. The ETF trades in average daily volume of 59,000 shares and has gained 15.8% in the same timeframe.TechnologyIn a tight policy era, technology seems one of the safest sectors as most of the companies are sitting on a huge cash pile. The cash reserves will ensure that these companies are not plagued by any financial trouble even in a rising interest rate environment. While there are several ETFs to bet on, First Trust NASDAQ-100-Technology Sector Index Fund QTEC could be an intriguing option. It has a Zacks ETF Rank #1 with a High risk outlook.    This ETF tracks the NASDAQ-100 Technology Sector Index, holding 41 stocks in its basket with almost equal allocation. From an industry look, software and semiconductors dominate the list with 34.9% and 32.7% share, respectively, while production technology equipment and consumer digital services make up for the next two spots. QTEC is a large cap centric fund with AUM of $3.9 billion and average daily volume of around 66,000 shares. It charges 57 bps in annual fees and gained 19.6% so far this year.DollarTightening policy and higher rates would attract more capital to the country from foreign investors, thereby boosting the U.S. dollar against the basket of other currencies. Invesco DB US Dollar Index Bullish Fund UUP offers exposure to a dollar against a basket of six world currencies. This is done by tracking the Deutsche Bank Long USD Currency Portfolio Index - Excess Return plus the interest income from the fund’s holdings of U.S. Treasury securities. In terms of holdings, UUP allocates nearly 57.6% in euro and 25.5% collectively in the Japanese yen and British pound. The fund has so far managed an asset base of $487.9 million and sees an average daily volume of around 697,000 shares. It charges 76 bps in annual fees and has gained 3.5% so far this year. The fund has a Zacks ETF Rank #2 with a Medium risk outlook (read: U.S. Dollar to Gain Ahead? ETFs to Gain/Lose).  More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Financial Select Sector SPDR ETF (XLF): ETF Research Reports Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports First Trust NASDAQ100Technology Sector ETF (QTEC): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks36 min. ago

BCS vs. NABZY: Which Stock Should Value Investors Buy Now?

BCS vs. NABZY: Which Stock Is the Better Value Option? Investors interested in stocks from the Banks - Foreign sector have probably already heard of Barclays (BCS) and National Australia Bank Ltd. (NABZY). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.Currently, Barclays has a Zacks Rank of #2 (Buy), while National Australia Bank Ltd. has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that BCS is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.BCS currently has a forward P/E ratio of 6.01, while NABZY has a forward P/E of 13.76. We also note that BCS has a PEG ratio of 0.15. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NABZY currently has a PEG ratio of 0.57.Another notable valuation metric for BCS is its P/B ratio of 0.44. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NABZY has a P/B of 1.36.These are just a few of the metrics contributing to BCS's Value grade of B and NABZY's Value grade of C.BCS has seen stronger estimate revision activity and sports more attractive valuation metrics than NABZY, so it seems like value investors will conclude that BCS is the superior option right now. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Barclays PLC (BCS): Free Stock Analysis Report National Australia Bank Ltd. (NABZY): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks36 min. ago

INT vs. MPC: Which Stock Should Value Investors Buy Now?

INT vs. MPC: Which Stock Is the Better Value Option? Investors interested in stocks from the Oil and Gas - Refining and Marketing sector have probably already heard of World Fuel Services (INT) and Marathon Petroleum (MPC). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.Currently, World Fuel Services has a Zacks Rank of #2 (Buy), while Marathon Petroleum has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that INT is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.INT currently has a forward P/E ratio of 21.51, while MPC has a forward P/E of 49.92. We also note that INT has a PEG ratio of 4.30. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MPC currently has a PEG ratio of 8.32.Another notable valuation metric for INT is its P/B ratio of 1.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, MPC has a P/B of 1.07.These are just a few of the metrics contributing to INT's Value grade of A and MPC's Value grade of C.INT has seen stronger estimate revision activity and sports more attractive valuation metrics than MPC, so it seems like value investors will conclude that INT is the superior option right now. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report World Fuel Services Corporation (INT): Free Stock Analysis Report Marathon Petroleum Corporation (MPC): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks36 min. ago

Futures Rise On Taper, Evergrande Optimism

Futures Rise On Taper, Evergrande Optimism US index futures jumped overnight even as the Fed confirmed that a November tapering was now guaranteed and would be completed by mid-2022 with one rate hike now on deck, while maintaining the possibility to extend stimulus if necessitated by the economy. Sentiment got an additional boost from a strong showing of Evergrande stock - which closed up 17% - during the Chinese session, which peaked just after Bloomberg reported that China told Evergrande to avoid a near-term dollar bond default and which suggested that the "government wants to avoid an imminent collapse of the developer" however that quickly reversed when the WSJ reported, just one hour later, that China was making preparations for Evergrande's demise, and although that hammered stocks, the report explicitly noted that a worst-case scenario for Evergrande would mean a partial or full nationalization as "local-level government agencies and state-owned enterprises have been instructed to step in only at the last minute should Evergrande fail to manage its affairs in an orderly fashion." In other words, both reports are bullish: either foreign creditors are made whole (no default) as per BBG or the situation deteriorates and Evergrande is nationalized ("SOEs step in") as per WSJ. According to Bloomberg, confidence is building that markets can ride out a pullback in Fed stimulus, unlike 2013 when the taper tantrum triggered large losses in bonds and equities. "Investors are betting that the economic and profit recovery will be strong enough to outweigh a reduction in asset purchases, while ultra-low rates will continue to support riskier assets even as concerns linger about contagion from China’s real-estate woes." That's one view: the other is that the Fed has so broken the market's discounting ability we won't know just how bad tapering will get until it actually begins. “The Fed has got to be pleased that their communication on the longer way to tapering has avoided the dreaded fear of the tantrum,” Jeffrey Rosenberg, senior portfolio manager for systematic fixed income at BlackRock Inc., said on Bloomberg Television. “This is a very good outcome for the Fed in terms of signaling their intent to give the market information well ahead of the tapering decision.” Then there is the question of Evergrande: “With regards to Evergrande, all those people who are waiting for a Lehman moment in China will probably have to wait another turn,” said Ken Peng, an investment strategist at Citi Private Bank Asia Pacific. “So I wouldn’t treat this as completely bad, but there are definitely a lot of risks on the horizon.” In any case, today's action is a continuation of the best day in two months for both the Dow and the S&P which staged a strong recovery from two-month lows hit earlier in the week, and as of 745am ET, S&P 500 E-minis were up 25.25 points, or 0.6%, Dow E-minis were up 202 points, or 0.59%, while Nasdaq 100 E-minis were up 92.0 points, or 0.60%. In the premarket, electric vehicle startup Lucid Group rose 3.1% in U.S. premarket trading. PAVmed (PVM US) jumps 11% after its Lucid Diagnostics unit announced plans to list on the Global Market of the Nasdaq Stock Market.  Here are some of the biggest movers today: U.S.-listed Chinese stocks rise in premarket trading as fears of contagion from China Evergrande Group’s debt crisis ease. Blackberry (BB US) shares rise 8.7% in premarket after co.’s 2Q adjusted revenue beat the average of analysts’ estimates Eargo (EAR US) falls 57% in Thursday premarket after the hearing aid company revealed it was the target of a Justice Department criminal probe and withdrew its forecasts for the year Amplitude Healthcare Acquisition (AMHC US) doubled in U.S. premarket trading after the SPAC’s shareholders approved the previously announced business combination with Jasper Therapeutics Steelcase (SCS US) fell 4.8% Wednesday postmarket after the office products company reported revenue for the second quarter that missed the average analyst estimate Vertex Energy Inc. (VTNR US) gained 2.1% premarket after saying the planned acquisition of a refinery in Mobile, Alabama from Royal DutVTNR US Equitych Shell Plc is on schedule Synlogic (SYBX US) shares declined 9.7% premarket after it launched a stock offering launched without disclosing a size HB Fuller (FUL US) climbed 2.7% in postmarket trading after third quarter sales beat even the highest analyst estimate Europe's Stoxx 600 index rose 0.9%, lifted by carmakers, tech stocks and utilities, which helped it recover losses sparked earlier in the week by concerns about Evergrande and China’s crackdown on its property sector. The gauge held its gain after surveys of purchasing managers showed business activity in the euro area lost momentum and slowed broadly in September after demand peaked over the summer and supply-chain bottlenecks hurt services and manufacturers. Euro Area Composite PMI (September, Flash): 56.1, consensus 58.5, last 59.0. Euro Area Manufacturing PMI (September, Flash): 58.7, consensus 60.3, last 61.4. Euro Area Services PMI (September, Flash): 56.3, consensus 58.5, last 59.0. Germany Composite PMI (September, Flash): 55.3, consensus 59.2, last 60.0. France Composite PMI (September, Flash): 55.1, consensus 55.7, last 55.9. UK Composite PMI (September, Flash): 54.1, consensus 54.6, last 54.8. Commenting on Europe's PMIs, Goldman said that the Euro area composite PMI declined by 2.9pt to 56.1 in September, well below consensus expectations. The softening was broad-based across countries but primarily led by Germany. The peripheral composite flash PMI also weakened significantly in September but remain very high by historical standards (-2.4pt to 57.5). Across sectors, the September composite decline was also broad-based, with manufacturing output softening (-3.3pt to 55.6) to a similar extent as services (-2.7pt to 56.3). Supply-side issues and upward cost and price pressures continued to be widely reported. Expectations of future output growth declined by less than spot output on the back of delta variant worries and supply issues, remaining far above historically average levels. Earlier in the session, Asian stocks rose for the first time in four sessions, as Hong Kong helped lead a rally on hopes that troubled property firm China Evergrande Group will make progress on debt repayment. The MSCI Asia Pacific Index climbed as much as 0.5%, with Tencent and Meituan providing the biggest boosts. The Hang Seng jumped as much as 2.5%, led by real estate stocks as Evergrande surged more than 30%. Hong Kong shares later pared their gains. Asian markets were also cheered by gains in U.S. stocks overnight even as the Federal Reserve said it may begin scaling back stimulus this year. A $17 billion net liquidity injection from the People’s Bank of China also provided a lift, while the Fed and Bank of Japan downplayed Evergrande risks in comments accompanying policy decisions Wednesday. Evergrande’s stock closed 18% higher in Hong Kong, in a delayed reaction to news a unit of the developer had negotiated interest payments on yuan notes. A coupon payment on its 2022 dollar bond is due on Thursday “Investors are perhaps reassessing the tail risk of a disorderly fallout from Evergrande’s credit issues,” said Chetan Seth, a strategist at Nomura. “However, I am not sure if the fundamental issue around its sustainable deleveraging has been addressed. I suspect markets will likely remain quite volatile until we have some definite direction from authorities on the eventual resolution of Evergrande’s debt problems.” Stocks rose in most markets, with Australia, Taiwan, Singapore and India also among the day’s big winners. South Korea’s benchmark was the lone decliner, while Japan was closed for a holiday In rates, Treasuries were off session lows, with the 10Y trading a 1.34%, but remained under pressure in early U.S. session led by intermediate sectors, where 5Y yield touched highest since July 2. Wednesday’s dramatic yield-curve flattening move unleashed by Fed communications continued, compressing 5s30s spread to 93.8bp, lowest since May 2020. UK 10-year yield climbed 3.4bp to session high 0.833% following BOE rate decision (7-2 vote to keep bond-buying target unchanged); bunds outperformed slightly. Peripheral spreads tighten with long-end Italy outperforming. In FX, the Bloomberg Dollar Spot Index reversed an earlier gain and dropped 0.3% as the dollar weakened against all of its Group-of-10 peers apart from the yen amid a more positive sentiment. CAD, NOK and SEK are the strongest performers in G-10, JPY the laggard.  The euro and the pound briefly pared gains after weaker-than-forecast German and British PMIs. The pound rebounded from an eight-month low amid a return of global risk appetite as investors assessed whether the Bank of England will follow the Federal Reserve’s hawkish tone later Thursday. The yield differential between 10-year German and Italian debt narrowed to its tightest since April. Norway’s krone advanced after Norges Bank raised its policy rate in line with expectations and signaled a faster pace of tightening over the coming years. The franc whipsawed as the Swiss National Bank kept its policy rate and deposit rate at record lows, as expected, and reiterated its pledge to wage currency market interventions. The yen fell as a unit of China Evergrande said it had reached an agreement with bond holders over an interest payment, reducing demand for haven assets. Turkey’s lira slumped toa record low against the dollar after the central bank unexpectedly cut interest rates. In commodities, crude futures drifted lower after a rangebound Asia session. WTI was 0.25% lower, trading near $72; Brent dips into the red, so far holding above $76. Spot gold adds $3.5, gentle reversing Asia’s losses to trade near $1,771/oz. Base metals are well bid with LME aluminum leading gains. Bitcoin steadied just below $44,000. Looking at the day ahead, we get the weekly initial jobless claims, the Chicago Fed’s national activity index for August, and the Kansas City fed’s manufacturing activity index for September. From central banks, there’ll be a monetary policy decision from the Bank of England, while the ECB will be publishing their Economic Bulletin and the ECB’s Elderson will also speak. From emerging markets, there’ll also be monetary policy decisions from the Central Bank of Turkey and the South African Reserve Bank. Finally in Germany, there’s an election debate with the lead candidates from the Bundestag parties. Market Snapshot S&P 500 futures up 0.7% to 4,413.75 STOXX Europe 600 up 1.1% to 468.32 MXAP up 0.5% to 200.57 MXAPJ up 0.9% to 645.76 Nikkei down 0.7% to 29,639.40 Topix down 1.0% to 2,043.55 Hang Seng Index up 1.2% to 24,510.98 Shanghai Composite up 0.4% to 3,642.22 Sensex up 1.4% to 59,728.37 Australia S&P/ASX 200 up 1.0% to 7,370.22 Kospi down 0.4% to 3,127.58 German 10Y yield fell 5.6 bps to -0.306% Euro up 0.4% to $1.1728 Brent Futures up 0.3% to $76.39/bbl Gold spot up 0.0% to $1,768.25 U.S. Dollar Index down 0.33% to 93.16 Top Overnight News from Bloomberg Financial regulators in Beijing issued a broad set of instructions to China Evergrande Group, telling the embattled developer to focus on completing unfinished properties and repaying individual investors while avoiding a near-term default on dollar bonds China’s central bank net-injected the most short- term liquidity in eight months into the financial system, with markets roiled by concerns over China Evergrande Group’s debt crisis Europe’s worst energy crisis in decades could drag deep into the cold months as Russia is unlikely to boost shipments until at least November Business activity in the euro area “markedly” lost momentum in September after demand peaked over the summer and supply chain bottlenecks hurt both services and manufacturers. Surveys of purchasing managers by IHS Markit showed growth in both sectors slowing more than expected, bringing overall activity to a five-month low. Input costs, meanwhile, surged to the highest in 21 years, according to the report The U.K. private sector had its weakest month since the height of the winter lockdown and inflation pressures escalated in September, adding to evidence that the recovery is running into significant headwinds, IHS Markit said The U.K.’s record- breaking debut green bond sale has given debt chief Robert Stheeman conviction on the benefits of an environmental borrowing program. The 10 billion-pound ($13.7 billion) deal this week was the biggest-ever ethical bond sale and the country is already planning another offering next month A more detailed look at global markets courtesy of Newsquaw Asian equity markets traded mostly positive as the region took its cue from the gains in US with the improved global sentiment spurred by some easing of Evergrande concerns and with stocks also unfazed by the marginally more hawkish than anticipated FOMC announcement (detailed above). ASX 200 (+1.0%) was underpinned by outperformance in the commodity-related sectors and strength in defensives, which have more than atoned for the losses in tech and financials, as well as helped markets overlook the record daily COVID-19 infections in Victoria state. Hang Seng (+0.7%) and Shanghai Comp. (+0.6%) were also positive after another respectable liquidity operation by the PBoC and with some relief in Evergrande shares which saw early gains of more than 30% after recent reports suggested a potential restructuring by China’s government and with the Co. Chairman noting that the top priority is to help wealth investors redeem their products, although the majority of the Evergrande gains were then pared and unit China Evergrande New Energy Vehicle fully retraced the initial double-digit advances. KOSPI (-0.5%) was the laggard as it played catch up to the recent losses on its first trading day of the week and amid concerns that COVID cases could surge following the holiday period, while Japanese markets were closed in observance of the Autumnal Equinox Day. China Pumps $17 Billion Into System Amid Evergrande Concerns China Stocks From Property to Tech Jump on Evergrande Respite Philippines Holds Key Rate to Spur Growth Amid Higher Prices Taiwan’s Trade Deal Application Sets Up Showdown With China Top Asian News European equities (Stoxx 600 +0.9%) trade on the front-foot and have extended gains since the cash open with the Stoxx 600 now higher on the week after Monday’s heavy losses. From a macro perspective, price action in Europe has been undeterred by a slowdown in Eurozone PMIs which saw the composite metric slip to 56.1 from 59.0 (exp. 58.5) with IHS Markit noting “an unwelcome combination of sharply slower economic growth and steeply rising prices.” Instead, stocks in the region have taken the cue from a firmer US and Asia-Pac handover with performance in Chinese markets aided by further liquidity injections by the PBoC. Some positivity has also been observed on the Evergrande front amid mounting expectations of a potential restructuring at the company. That said, at the time of writing, it remains unclear what the company’s intentions are for repaying its USD 83.5mln onshore coupon payment. Note, ING highlights that “missing that payment today would still leave a 30-day grace period before this is registered as a default”. The most recent reports via WSJ indicate that Chinese authorities are asking local governments to begin preparations for the potential downfall of Evergrande; however, the article highlights that this is a last resort and Beijing is reluctant to step in. Nonetheless, this article has taken the shine off the mornings risk appetite, though we do remain firmer on the session. Stateside, as the dust settles on yesterday’s FOMC announcement, futures are firmer with outperformance in the RTY (+0.8% vs. ES +0.7%). Sectors in Europe are higher across the board with outperformance in Tech and Autos with the latter aided by gains in Faurecia (+4.6%) who sit at the top of the Stoxx 600 after making an unsurprising cut to its guidance, which will at least provide some clarity on the Co.’s near-term future; in sympathy, Valeo (+6.6) is also a notable gainer in the region. To the downside, Entain (+2.6%) sit at the foot of the Stoxx 600 after recent strong gains with the latest newsflow surrounding the Co. noting that MGM Resorts is considering different methods to acquire control of the BetMGM online gambling business JV, following the DraftKings offer for Entain, according to sources. The agreement between Entain and MGM gives MGM the ability to block any deal with competing businesses; MGM officials believe this grants the leverage to take full control of BetMGM without spending much. Top European News BOE Confronts Rising Prices, Slower Growth: Decision Guide La Banque Postale Eyes Retail, Asset Management M&A in Europe Activist Bluebell Raises Pressure on Glaxo CEO Walmsley Norway Delivers Rate Lift-Off With Next Hike Set for December In FX, not much bang for the Buck even though the FOMC matched the most hawkish market expectations and Fed chair Powell arguably went further by concluding in the post-meeting press conference that substantial progress on the lagging labour front is all but done. Hence, assuming the economy remains on course, tapering could start as soon as November and be completed my the middle of 2022, though he continued to play down tightening prospects irrespective of the more hawkish trajectory implied by the latest SEP dot plots that are now skewed towards at least one hike next year and a cumulative seven over the forecast horizon. However, the Greenback only managed to grind out marginally higher highs overnight, with the index reaching 93.526 vs 93.517 at best yesterday before retreating quite sharply and quickly to 93.138 in advance of jobless claims and Markit’s flash PMIs. CAD/NZD/AUD - The Loonie is leading the comeback charge in major circles and only partially assisted by WTI keeping a firm bid mostly beyond Usd 72/brl, and Usd/Cad may remain contained within 1.2796-50 ahead of Canadian retail sales given decent option expiry interest nearby and protecting the downside (1 bn between 1.2650-65 and 2.7 bn from 1.2620-00). Meanwhile, the Kiwi has secured a firmer grip on the 0.7000 handle to test 0.7050 pre-NZ trade and the Aussie is looking much more comfortable beyond 0.7250 amidst signs of improvement in the flash PMIs, albeit with the services and composite headline indices still some way short of the 50.0 mark. NOK/GBP/EUR/CHF - All firmer, and the Norwegian Crown outperforming following confirmation of the start of rate normalisation by the Norges Bank that also underscored another 25 bp hike in December and further tightening via a loftier rate path. Eur/Nok encountered some support around 10.1000 for a while, but is now below, while the Pound has rebounded against the Dollar and Euro in the run up to the BoE at midday. Cable is back up around 1.3770 and Eur/Gbp circa 0.8580 as Eur/Usd hovers in the low 1.1700 area eyeing multiple and a couple of huge option expiries (at the 1.1700 strike in 4.1 bn, 1.1730 in 1 bn, 1.1745-55 totalling 2.7 bn and 1.8 bn from 1.1790-1.1800). Note, Eurozone and UK flash PMIs did not live up to their name, but hardly impacted. Elsewhere, the Franc is lagging either side of 0.9250 vs the Buck and 1.0835 against the Euro on the back of a dovish SNB Quarterly Review that retained a high Chf valuation and necessity to maintain NIRP, with only minor change in the ordering of the language surrounding intervention. JPY - The Yen is struggling to keep its head afloat of 110.00 vs the Greenback as Treasury yields rebound and risk sentiment remains bullish pre-Japanese CPI and in thinner trading conditions due to the Autumn Equinox holiday. In commodities, WTI and Brent have been choppy throughout the morning in-spite of the broadly constructive risk appetite. Benchmarks spent much of the morning in proximity to the unchanged mark but the most recent Evergrande developments, via WSJ, have dampened sentiment and sent WTI and Brent back into negative territory for the session and printing incremental fresh lows at the time of publication. Back to crude, newsflow has once again centred around energy ministry commentary with Iraq making clear that oil exports will continue to increase. Elsewhere, gas remains at the forefront of focus particularly in the UK/Europe but developments today have been somewhat incremental. On the subject, Citi writes that Asia and Europe Nat. Gas prices could reach USD 100/MMBtu of USD 580/BOE in the winter, under their tail-risk scenario. For metals, its very much a case of more of the same with base-metals supportive, albeit off-best given Evergrande, after a robust APAC session post-FOMC. Given the gas issues, desks highlight that some companies are being forced to suspend/reduce production of items such as steel in Asian/European markets, a narrative that could become pertinent for broader prices if the situation continues. Elsewhere, spot gold and silver are both modestly firmer but remain well within the range of yesterday’s session and are yet to recovery from the pressure seen in wake of the FOMC. US Event Calendar 8:30am: Sept. Initial Jobless Claims, est. 320,000, prior 332,000; Continuing Claims, est. 2.6m, prior 2.67m 8:30am: Aug. Chicago Fed Nat Activity Index, est. 0.50, prior 0.53 9:45am: Sept. Markit US Composite PMI, prior 55.4 9:45am: Sept. Markit US Services PMI, est. 54.9, prior 55.1 9:45am: Sept. Markit US Manufacturing PMI, est. 61.0, prior 61.1 11am: Sept. Kansas City Fed Manf. Activity, est. 25, prior 29 12pm: 2Q US Household Change in Net Wor, prior $5t DB's Jim Reid concludes the overnight wrap My wife was at a parents event at school last night so I had to read three lots of bedtime stories just as the Fed were announcing their policy decision. Peppa Pig, Biff and Kipper, and somebody called Wonder Kid were interspersed with Powell’s press conference live on my phone. It’s fair to say the kids weren’t that impressed by the dot plot and just wanted to join them up. The twins (just turned 4) got their first reading book homework this week and it was a bit sad that one of them was deemed ready to have one with words whereas the other one only pictures. The latter was very upset and cried that his brother had words and he didn’t. That should create even more competitive tension! Back to the dots and yesterday’s Fed meeting was on the hawkish side in terms of the dots and also in terms of Powell’s confidence that the taper could be complete by mid-2022. Powell said that the Fed could begin tapering bond purchases as soon as the November FOMC meeting, in line with our US economists’ forecasts. He left some room for uncertainty, saying they would taper only “If the economy continues to progress broadly in line with expectations, and also the overall situation is appropriate for this.” However he made clear that “the timing and pace of the coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of interest rate liftoff.” The quarterly “dot plot” showed that the 18 FOMC officials were split on whether to start raising rates next year or not. In June, the median dot indicated no rate increases until 2023, but now 6 members see a 25bps raise next year and 3 members see two such hikes. Their inflation forecasts were also revised up and DB’s Matt Luzzetti writes in his FOMC review (link here) that “If inflation is at or below the Fed's current forecast next year of 2.3% core PCE, liftoff is likely to come in 2023, consistent with our view. However, if inflation proves to be higher with inflation expectations continuing to rise, the first rate increase could well migrate into 2022.” Markets took the overall meeting very much in its stride with the biggest impact probably being a yield curve flattening even if US 10yr Treasury yields traded in just over a 4bp range yesterday and finishing -2.2bps lower at 1.301%. The 5y30y curve flattened -6.7bps to 95.6bps, its flattest level since August 2020, while the 2y10y curve was -4.2bps flatter. So the market seems to believe the more hawkish the Fed gets the more likely they’ll control inflation and/or choke the recovery. The puzzle is that even if the dots are correct, real Fed funds should still be negative and very accommodative historically for all of the forecasting period. As such the market has a very dim view of the ability of the economy to withstand rate hikes or alternatively that the QE technicals are overpowering everything at the moment. In equities, the S&P 500 was up nearly +1.0% 15 minutes prior to the Fed, and then rallied a further 0.5% in the immediate aftermath before a late dip look it back to +0.95%. The late dip meant that the S&P still has not seen a 1% up day since July 23. The index’s rise was driven by cyclicals in particular with energy (+3.17%), semiconductors (-2.20%), and banks (+2.13%) leading the way. Asian markets are mostly trading higher this morning with the Hang Seng (+0.69%), Shanghai Comp (+0.58%), ASX (+1.03%) and India’s Nifty (+0.81%) all up. The Kospi (-0.36%) is trading lower though and is still catching up from the early week holidays. Japan’s markets are closed for a holiday today. Futures on the S&P 500 are up +0.25% while those on the Stoxx 50 are up +0.49%. There is no new news on the Evergrande debt crisis however markets participants are likely to pay attention to whether the group is able to make interest rate payment on its 5 year dollar note today after the group had said yesterday that it resolved a domestic bond coupon by negotiations which was also due today. As we highlighted in our CoTD flash poll conducted earlier this week, market participants are not too worried about a wider fallout from the Evergrande crisis and even the Hang Seng Properties index is up +3.93% this morning and is largely back at the levels before the big Monday sell-off of -6.69%. Overnight we have received flash PMIs for Australia which improved as parts of the country have eased the coronavirus restrictions. The services reading came in at 44.9 (vs. 42.9 last month) and the manufacturing print was even stronger at 57.3 (vs. 52.0 last month). Japan’s flash PMIs will be out tomorrow due to today’s holiday. Ahead of the Fed, markets had continued to rebound from their declines earlier in the week, with Europe’s STOXX 600 gaining +0.99% to narrowly put the index in positive territory for the week. This continues the theme of a relative outperformance among European equities compared to the US, with the STOXX 600 having outpaced the S&P 500 for 5 consecutive sessions now, though obviously by a slim margin yesterday. Sovereign bonds in Europe also posted gains, with yields on 10yr bunds (-0.7bps), OATs (-1.0bps) and BTPs (-3.2bps) all moving lower. Furthermore, there was another tightening in peripheral spreads, with the gap in Italian 10yr yields over bunds falling to 98.8bps yesterday, less than half a basis point away from its tightest level since early April. Moving to fiscal and with Democrats seemingly unable to pass the $3.5 trillion Biden budget plan by Monday, when the House is set to vote on the bipartisan infrastructure bill, Republican leadership is calling on their members to vote against the bipartisan bill in hopes of delaying the process further. While the there is still a high likelihood the measure will eventually get passed, time is becoming a factor. Congress now has just over a week to get a government funding bill through both chambers of congress as well as raise the debt ceiling by next month. Republicans have told Democrats to do the latter in a partisan manner and include it in the reconciliation process which could mean that a significant portion of the Biden economic agenda – mostly encapsulated in the $3.5 trillion over 10 year budget – may have to be cut down to get the entire Democratic caucus on board. Looking ahead, an event to watch out for today will be the Bank of England’s policy decision at 12:00 London time, where our economists write (link here) that they expect no change in the policy settings. However, they do expect a reaffirmation of the BoE’s updated forward guidance that some tightening will be needed over the next few years to keep inflation in check, even if it’s too early to expect a further hawkish pivot at this stage. Staying on the UK, two further energy suppliers (Avro Energy and Green Supplier) ceased trading yesterday amidst the surge in gas prices, with the two supplying 2.9% of domestic customers between them. We have actually seen a modest fall in European natural gas prices over the last couple of days, with the benchmark future down -4.81% since its close on Monday, although it’s worth noting that still leaves them up +75.90% since the start of August alone. There wasn’t much data to speak of yesterday, though US existing home sales fell to an annualised rate of 5.88 in August (vs. 5.89m expected). Separately, the European Commission’s advance consumer confidence reading for the Euro Area unexpectedly rose to -4.0 in September (vs. -5.9 expected). To the day ahead now, the data highlights include the September flash PMIs from around the world, while in the US there’s the weekly initial jobless claims, the Chicago Fed’s national activity index for August, and the Kansas City fed’s manufacturing activity index for September. From central banks, there’ll be a monetary policy decision from the Bank of England, while the ECB will be publishing their Economic Bulletin and the ECB’s Elderson will also speak. From emerging markets, there’ll also be monetary policy decisions from the Central Bank of Turkey and the South African Reserve Bank. Finally in Germany, there’s an election debate with the lead candidates from the Bundestag parties. Tyler Durden Thu, 09/23/2021 - 08:13.....»»

Category: blogSource: zerohedge1 hr. 52 min. ago

The best smartwatches in 2021 for fitness, sleep tracking, and style

The Apple Watch is our top pick. But Google’s Wear OS update could mean better choices for Android users are coming. Table of Contents: Masthead Sticky The Apple Watch is easy to use and comes with plenty of health features, making it our favorite smartwatch. Samsung's Galaxy Watch 4 series is the best choice for Android device owners. We don't recommend smartwatches running on Google's WearOS 2 operating system while we wait for WearOS 3 next year. See our guides to the best Apple Watches and smartwatches for women for more buying advice. The best smartwatches are useful for making sure you're kept in the loop when your phone's not in reach. They're also a great motivational tool for staying in shape and keeping tabs on your overall wellness.Smartwatches come in many different sizes, designs, and they can vary greatly when it comes to features. Before making a buying decision, ask yourself whether you want a watch primarily for fitness and sleep tracking, or whether style is your top priority. It's also a good idea to think about what watch operating system works best with your phone. For example, Apple watches only work with iPhones, Samsung and Google's WearOS3 powered by Samsung works with both Android. Google recently announced changes to its Wear OS platform coming later this year that include more customization, enhancements to battery life, and deeper integration with Google services. We had a taste of what's to come with the Galaxy Watch 4, and the future is looking good for Android users.I've been reviewing tech products for nearly a decade, and that includes testing smartwatches over the course of the past seven years. That means I've tested and researched many wearables from companies like Apple, Fitbit, Samsung and others and have a strong sense of what makes a good smartwatch for the price.Here are the best smartwatches you can buy:Best smartwatch overall: Apple Watch Series 6Best smartwatch for Android users: Samsung Galaxy Watch 4Best smartwatch for sleep tracking: Fitbit Versa 3Best fitness smartwatch: Garmin Forerunner 935 Running GPS Watch The best smartwatch overall Antonio Villas-Boas/Insider The Apple Watch has long been our favorite smartwatch for its ease of use, comprehensive health tracking, and polished design, and the Series 6 is the best iteration yet, at least until the Series 7 comes out in the fall. Size: 40 millimeter or 44 millimeter caseSensors and health: Compass, ECG sensor, blood oxygen sensor, always-on display, NFC, optical heart sensor, fall detectionSoftware: Apple watchOSBattery Life: Up to 18 hoursCheck out our guide to the best AirPodsPros: Large always-on display, polished design and software, wide variety of health-focused and smartwatch-oriented featuresCons: Expensive, shorter battery life than some rivals, only offers basic sleep trackingThe $400 Apple Watch Series 6 is Apple's most expensive smartwatch, and for good reason. With an always-on display that's brighter than the Series 5's, fast charging, new color options, and blood oxygen monitoring, it's the best Apple Watch you can buy. Apple also sells the less expensive Apple Watch SE for $280, another great choice if you want an Apple Watch that still feels new and fast at a more reasonable price. But you'll be missing out on advanced health features like blood oxygen level monitoring and the ability to take an ECG from your wrist.Those features may not matter for everyone; if you're the type of person that just wants to stay active and challenge yourself with fitness goals, the  SE will do just fine. It's these features combined with the Series 6's always-on display and faster charging that make it our top choice in the lineup.More broadly, the Apple Watch stands out from other smartwatches for its modern design that easily fits with any style, broad customization options, smooth performance and wide variety of apps, and polished software. Our writers and editors have tested dozens of WearOS and Fitbit watches over the years, and the Apple Watch has consistently been the best when it comes to the overall experience.That doesn't mean it's perfect, though. The Apple Watch's biggest drawbacks compared to rivals from Fitbit and other companies are its high price tag, shorter battery life, and lackluster sleep tracking. The best smartwatch for Android users Antonio Villas-Boas/Insider The Samsung Galaxy Watch 4 is the obvious choice for Android users looking for a comprehensive, quality, premium smartwatch experience. However, it's a shame that the ECG feature is limited specifically to Samsung phone owners. Display:  40mm (396 x 396) and 44mm (450 x 450) Battery: 247mAh (40mm) and 361mAh (44mm), about 36 hoursOperating system: Google Wear OS powered by SamsungSensors: Accelerometer, Barometer, Gyro Sensor, Geomagnetic sensor, Electrical Heart Sensor (ECG), Optical Heart Rate Sensor (HRM), Bioelectrical impedance analysis sensor, Light SensorWater resistance: IP68 + 5ATMPros: Premium build and design, comparatively inexpensive, comprehensive fitness tracking and features, good battery life, more apps than everCons: ECG feature limited to Samsung users, included strap with Classic model is badWith smartwatches running Google's WearOS 2 out of our recommendation zone, Samsung's Galaxy Watch 4 series is the only real contender for Android users in the US. Thankfully, the Galaxy Watch 4 series is truly excellent. The Galaxy Watch 4 has an array of health and fitness tracking features you'd expect from a premium smartwatch, including workout tracking, heart rate monitoring, blood pressure measuring, an ECG feature, sleep tracking, blood oxygen measuring, and stress measuring. It also has more advanced sleep tracking than the Apple Watch, but I've never personally had much confidence in this feature. Battery life is as expected in a premium smartwatch — that's to say it lasts about a day and a half before it needs a charge. That's with the always-on display, which looks great with the wide variety of customizable watch faces.You can read the full Samsung Galaxy Watch 4 review here. The best smartwatch for sleep tracking Fitbit The Fitbit Versa 3 is a relatively affordable smartwatch that checks all the boxes, but truly shines when it comes to sleep tracking and battery life.Size: One size, dimensions 1.59 x 1.59  x 0.49 inchesSensors and health: Heart rate monitor, NFC, ECG sensor, always-on display, altimeter, temperature sensorSoftware: Fitbit OSBattery Life: Estimated 6-plus days of battery lifeRead our full guide to the best sleep trackersPros: In-depth sleep tracking, long battery life, plenty of fitness featuresCons: No LTE version, software isn't as polished as the Apple WatchFitbit is far from being the only smartwatch to offer sleep tracking. But if you're looking for a general-purpose smartwatch that can provide deep insights into your sleep, the $229.95 Fitbit Versa 3 is the best pick for most people.Fitbit's sleep tracking goes beyond the basics by offering time spent in REM, light, and deep sleep, as well as the time you spent awake. It also tells you how much time you spent asleep and issues a Sleep Score that tells you about the quality of your sleep.In addition to just seeing data indicating how well you slept last night, you can also view a 30-day average and see how your sleeping pattern compares to others of your age and gender. Some of Fitbit's sleep-oriented features, like metrics that show restlessness, are only available if you subscribe to the $9.99 per month Fitbit Premium service. Still, even in the free tier, Fitbit offers more comprehensive sleep tracking metrics than most smartwatches, especially the Apple Watch. The Versa 3 also offers impressively long multi-day battery life that makes it much easier to track your sleep without worrying about draining your battery during the day. We recommend the Versa 3 over the $299.95 Fitbit Sense since it's more affordable and still has many of Fitbit's most important features. These include heart rate monitoring, the ability to deliver notifications from your phone, Amazon Alexa and Google Assistant support, exercise tracking, comprehensive sleep tracking, and a swim proof design. The downside, however, is that there's no LTE option for the Versa 3 for those who want to receive calls and texts when their phone isn't nearby. For iPhone owners, the software and app experience is also much more polished on the Apple Watch than it is on Fitbit's watches. Best smartwatch for fitness enthusiasts Garmin/Facebook The Garmin Forerunner 935 Running GPS Watch is a fitness enthusiast's dream that has long battery life and measures several metrics you won't find on general purpose watches.Size: 47 x 47 x 13.9 millimetersSensors and health: GPS, heart rate monitor, compass, thermometer, barometerSoftware: GarminBattery Life: Up to 2 weeks in smartwatch mode, up to 24 hours in GPS/HR modeCheck out the 5 best men's running shoes for race training, long distance runs, or casual jogsPros: Long battery life, waterproof, durable glass face, built-in barometer and thermometer, Wi-Fi and Bluetooth connections, and the ability to measure more metrics than we can list hereCons: Expensive, reduced GPS accuracy when running on a track, built-in thermometer only measures temperature right above your skinSmartwatches running Apple's, Samsung's, and Google's operating systems come with decent fitness tracking features and functionality, but then there are smartwatches that bring fitness tracking to a whole other level. We're talking about smartwatches from Garmin. We had a competitive distance runner try the $500 Garmin Forerunner 935 for 1,000 miles — and it's better than any running watch he's ever used. With that testimonial in mind, the Forerunner 935 is our top choice for fitness enthusiasts, at least for those who can allocate up to $500 for a device that's specifically geared towards fitness. When you're spending this much on a fitness tracking device, you're better off reading the full review to find out what's good and what's not about the Forerunner 935. And realizing that the Forerunner 935 is expensive, we know of some less expensive fitness trackers that will work just fine for the majority of fitness folk.  What else we considered Fitbit While these are our top picks, there are several other options worth considering based on your needs, preferences, and budget. Here's a look at some other contenders: Garmin Solar Instinct: The Solar Instinct is an outdoorsy-oriented watch that has small solar panels that help maintain a massive month-long battery life (as long as you're in the sun for at least three hours a day). It comes with a wide range of fitness and health tracking sensors and features, and it's a great alternative to the Forerunner 935 if you want some extra battery life.Garmin Vivoactive 4: Garmin's Vivoactive 4 is a more affordable alternative to its Forerunner and Fenix lines that still offers more in-depth health features than your standard smartwatch. It also comes with many of the other features around connectivity you'd demand from a watch of its price.Fitbit Sense: The Sense is Fitbit's top-of-the-line smartwatch and its first to offer the ability to measure how your body reacts to stress. The Sense, like Fitbit's other smartwatches, serves as a compelling Apple Watch alternative for non-Apple users and those seeking a more affordable watch. However, we chose the Versa 3 instead as one of our top picks because it has many of the benefits of the Sense at a more reasonable price.Michael Kors Access Lexington 2: Michael Kors has been making smartwatches alongside Fossil for years now. If you like MK, you'll probably like this watch as it has many of the same features. What we look forward to testing Tech companies and fashion houses alike are always launching new products, and these are the smartwatches that we're looking forward to testing soon.Apple Watch Series 7: We're looking forward to testing Apple's new Series 7 when it releases later this fall. The main draw here will be centered around the refreshed design, as well as some important updates to the always-on display and some nifty new features, like an on-screen keyboard for easier messaging.Smartwatches with Google's new Wear OS: Google's WearOS 2 is in dire need of replacement, and the company is currently working on that. Samsung and Google have already partnered to create a Google/Samsung hybrid version of WearOS 3 for the Galaxy Watch 4 that instills confidence. WearOS 3 is officially slated for a 2022 universal release, and we're looking forward to testing out smartwatches running on the new WearOS 3 when they're released. But for now, please, don't buy a smartwatch that runs on WearOS.Skagen Jorn Hybrid HR: With its minimalist design and low-power screen, the $195 Skagen Jorn looks promising for those who prioritize sleek looks and long battery life in a smartwatch. The company says it should last for up to two weeks on a charge thanks to its e-ink screen, which draws less power than traditional LCD or OLED screens. It has many of the core features you'd expect from a smartwatch, like the ability to deliver smartphone notifications, monitor activity and fitness, and measure your heart rate. Read the original article on Business Insider.....»»

Category: worldSource: nytSep 22nd, 2021

Pamper yourself at these 10 hotel spas in the US, from Arizona"s hot springs to New York"s Finger Lakes

We found the best hotels with spas in the US for self-care, from restorative treatments to guided meditation and holistic wellness. When you buy through our links, Insider may earn an affiliate commission. Learn more. Aman Resorts A getaway to de-stress sounds more enticing than ever. Many hotels have incredible spas rooted in helping you relax; some of the best are in the US. The best hotels with spas range from $97 to well over $1,000 - no passport required. Table of Contents: Masthead StickyMany of us are looking to finally return to travel with a focus on much-needed wellness. Fortunately, the US offers some of the best destination spas on the planet in hotels housed everywhere from urban oases in major metros to remote retreats nestled on beaches and islands.As a travel writer with an emphasis on luxury, I've experienced hotels with spas that are simply otherworldly. My top picks boast expansive facilities with soothing designs, innovative technologies, and holistic approaches like meditation and acupuncture. If you're ready to invest in some serious self-care, keep reading for the best hotels with spas in the US. Though, if you're looking for something more far-flung while keeping to a budget, we also rounded up the most affordable hotel spas around the world.Browse all the best hotels with spas below, or jump directly to a specific area here:The best hotels with spas in the USFAQ: Hotels with spasHow we selected the best hotels with spasMore of the most incredible hotelsThese are the best hotels with spas in the US, sorted by price from low to high. Resorts World Las Vegas Resorts World Las Vegas opened in June as the first integrated complex to go up on the Strip in over a decade. Tripadvisor Book Resorts World Las VegasCategory: BudgetLocation: Las Vegas, NevadaTypical starting/peak price: $97/$263Best for: Families, couples, groups of friends, solo travelers, business travelersOn-site amenities: An enormous slate of dining, entertainment, nightlife, and retail options, plus pools, spa, fitness center, casinoSpa features: The theatrical Art of Aufguss experience (the first of its kind in the US), Fountain of Youth experience with six vitality pools, foot spa lounge, bodywork, facialsPros: As the newest full-scale resort-casino property on the strip, Resorts World is a buzzy new option with a full suite of amenities in addition to the next-level spa.Cons: Although it's the newest, this isn't the poshest hotel in Vegas compared with pricier, more upscale resorts with tricked-out guest rooms.The Strip's newest integrated resort (that is, a major resort property that includes a hotel, casino, entertainment, convention facilities, retail, and more) comes with a unique and Vegas-worthy spa experience: Awana Spa. The spa offers an experience not available anywhere else in the country, known as the Art of Aufguss. This unique treatment-slash-show within the spa was inspired by European saunas that provide rejuvenation and socializing with the communal goal of wellness. The spa showcases a theater-inspired heated room with aromatherapy, choreographed music, lighting, and dancing towels, and it's as avant garde as it is relaxing. Here, each "sauna meister" curates a 30-minute themed experience.The Fountain of Youth is an experience within the spa that houses a network of six vitality pools, heated crystal laconium room, tepidarium chairs, vapor-filled steam rooms, cool mist showers, and an experiential "rain walk." The huge co-ed facility features LED screens and immersive experiences that change throughout the day; when the projection transports guests to various picturesque destinations, the room's temperature and other details change to match the displayed setting. The spa also offers traditional facials and body work, and has a foot spa lounge. Resorts World is the first complex like it to be built on the Las Vegas Strip in more than a decade. The $4.3 billion property has 3,500 guest rooms and suites, gaming, more than 40 food and beverage options, and nightlife. Through its partnership with Hilton, the development includes the Las Vegas Hilton, Conrad Las Vegas, and Crockfords Las Vegas. COVID-19 procedures are available here. Inns of Aurora Inns of Aurora is a luxury lakeside boutique resort in the Finger Lakes with a 15,000-square-foot spa. Inns of Aurora Book Inns of AuroraCategory: BoutiqueLocation: Aurora, New YorkTypical starting/peak price: $187/$360Best for: Families, couples, groups of friends, business travelersOn-site amenities: Multiple dining options, spa, activity center, meeting and event spaceSpa features: Indoor and outdoor hydrotherapy pools, meditation spaces, 10 treatment rooms (4 with fireplaces), inclusive gender-neutral spacesPros: The location is dreamy and remote with stunning lake views, and the spa is new and expansive.Cons: While most reviews are overwhelmingly positive, some critical reviewers noted there were limited food options.Founded in 1789, the Village of Aurora is a tiny, serene village in New York's pristine Finger Lakes region. Set on 350 acres of rolling farmland overlooking the lake, the property has five inns in all. Entry-level accommodations at the Aurora Inn have luxurious Queen beds outfitted in Frette linens, a comfortable seating area, and a writer's desk. Balconies with rocking chairs add charm in warmer months, as do gas fireplaces in the cooler ones.Known for its extensive wellness offerings, the Inns of Aurora has a 15,000-square-foot spa and healing center, The Spa at the Inns of Aurora, which takes a holistic approach to wellness. Indoor and outdoor spaces offer views of Cayuga Lake and there are six indoor and outdoor hydrotherapy pools, multiple meditation spaces, 10 treatment rooms (four outfitted with warming fireplaces), and inclusive gender-neutral spaces, along with unobstructed access to lush lavender fields for outdoor massages and relaxing strolls among nature trails. COVID-19 procedures are available here. Carillon Miami Wellness Resort At 70,000 square feet, Carillon Miami Wellness Resort is the largest spa center on the Eastern seaboard. Tripadvisor Book Carillon Miami Wellness ResortCategory: LuxuryLocation: Miami, FloridaTypical starting/peak price: $298/$625Best for: Couples, groups of friendsOn-site amenities: Multiple dining options, spa, wellness activities, fitness classes, beach clubSpa features: 70,000-square-foot Finnish spa and wellness facility with vitality tub, steam room, foot spa, cooling "igloo" room, experiential rain showers, thermal loungers, salt float bathPros: The spa has every treatment you could imagine, including innovative and high-tech approaches. Apartment-style lodgings are large and offer homey comfort.Cons: Critical reviews say the rooms are due for a sprucing.Located on the white sands of Miami Beach, Carillon Miami Wellness Resort is the only fully dedicated wellness resort in South Florida. Indeed, the 70,000-square-foot spa is the largest on the Eastern seaboard.Everything about staying here is plush, starting with well-appointed, apartment-sized accommodations that range from one- to two-bedroom layouts, starting at 720 square feet. They feature floor-to-ceiling windows with ocean views, a separate living room, a fully equipped kitchen, and a spa-like bathroom.Wellness offerings are abundant, including a range of ultra-high-tech services and amenities such as a futuristic cabin with a height-adjustable water bed, heated water mattress, color therapy, steam bath with aromatherapy, Vichy shower with six jets, and Vibro massage.​​Carillon also recently launched a touchless wellness program meant to target a range of issues like sleep health, anxiety, muscle recovery, weight loss, respiratory health, and mental and spiritual wellness.Come here to indulge with a one-of-a-kind thermal therapy experience, or sweat it out in 65 fitness classes held each week. Traditional Chinese medicine and a medical wellness division are also offered. Just note that spa treatments are not included in the room rate.COVID-19 procedures are available here. Peninsula Chicago Peninsula Chicago has 339 guest rooms and a sleek spa with an indoor pool. The Peninsula Chicago Book Peninsula ChicagoCategory: LuxuryLocation: Chicago, IllinoisTypical starting/peak prices: $399/$720Best for: Families, couples, groups of friends, business travelers On-site amenities: Multiple restaurants, rooftop lounge, spa, fitness center, pool, event venuesSpa features: Rejuvenation lounge with fireplace, yoga room, fitness center, half-Olympic poolPros: Peninsula Chicago is known for its top-end service, luxurious accommodations, and supremely walkable location on Chicago's Michigan Mile.Cons: Among mostly glowing reviews, few critical guests expressed higher hopes for the property given other experiences with the Peninsula brand.Located on the Magnificent Mile in the heart of Chicago's premier shopping district, this 339-guest room hotel features three restaurants, a rooftop lounge, and glam rooms. Even the entry-level guest rooms are some of the most spacious accommodations in town. Facing south over Superior Street, the Superior rooms are bright and airy with sophisticated decor in muted earth tones and signature blues alongside rich wood and cream leather accents.The Peninsula Chicago's spa is an exquisite urban retreat, with an indoor half-Olympic length swimming pool surrounded by floor-to-ceiling windows for jaw-dropping views of the city from the 19th floor.This Peninsula Chicago spa is the first hotel spa destination in the city to offer ultra-posh treatments using the famously expensive and splurge-worthy Biologique Recherche. There's also a relaxation lounge with a fireplace, a fully-equipped fitness center, and a yoga room. COVID-19 procedures are available here. Lake Austin Spa Resort Lake Austin Spa Resort covers 19 lakefront acres for a wellness getaway that feels a world away. Tripadvisor Book Lake Austin Spa ResortCategory: LuxuryLocation: Austin, TexasTypical starting/peak prices: $525/$1,450Best for: Couples, groups of friends, solo travelersOn-site amenities: Spa, pool, restaurant, boutique, fitness center, water sportsSpa features: Aster Café, private couples suites, more than 100 treatments and services, day passesPros: Room rates are all-inclusive, meaning your overnight price comes with three gourmet meals per day and all the fitness classes you can handle.Cons: The all-inclusive rate isn't totally all-encompassing as spa treatments are not included.Located 30 minutes from downtown Austin and speak on 19 lakefront acres, the Lake Austin Spa Resort feels tucked far away from any urban bustle. As an all-inclusive resort, the majority of offerings are covered by the rate. While it doesn't include spa treatments, it does include three gourmet meals made from ingredients grown on-site each day, as well as morning yoga classes, water sports on the lake, and stargazing sessions with an astrologer. Think of this as an adult version of a summer camp, where the emphasis is on mindfulness and fitness.Overnight guests stay in one of 40 French country-style accommodations, which range from quaint rooms with private meditation gardens to the elaborate Lady Bird Suite with a private hot tub. Each comes with fresh-cut daily flowers, Veuve Clicquot champagne upon arrival, a De'Longhi Lattissima Pro Espresso Machine, and toiletries with the spa's signature lavender scent, created from plants grown on-site.The 25,000-square-foot LakeHouse Spa offers fresh, seasonal dining at Aster Café, private couples suites, and a range of treatments using ancient and modern therapeutic techniques in a serene setting. COVID-19 procedures are available here. The Ritz-Carlton Bacara, Santa Barbara The Ritz-Carlton Bacara in Santa Barbara has the largest spa of any Ritz-Carlton in the country. Tripadvisor Book The Ritz-Carlton Bacara, Santa BarbaraCategory: LuxuryLocation: Santa Barbara, CaliforniaTypical starting/peak prices: $779/$1,379Best for: Couples, families, groups of friends, business travelersOn-site amenities: Pools, spa, multiple dining options, a 12,000-bottle wine collection and tasting room, event spaceSpa features: 42,000 square feet of indoor-outdoor space with fireside lounges, rooftop terrace, poolPros: The pools, beaches, and gardens here are all spectacular and the views can't be beaten. There is also a full suite of amenities and the service is exceptional.Cons: The large, sprawling property can pose a challenge for travelers with mobility issues.The Spa atThe Ritz-Carlton Bacara, Santa Barbara is a magnificent retreat, sprawling across 78 acres of lush land overlooking the Pacific. It has access to two beaches and offers three infinity-edge pools, two of which have gorgeous ocean views.Guest accommodations also have views of the sea, or the pool or garden from individual patios or balconies, and entry-level rooms start at a generous 450 square feet. The design is coastal, with dark woods and beams, Frette linens, deep soaking tubs, marble showers, and Asprey bath amenities. Newly debuted fireside garden rooms offer patios with private fire pits.The spa, however, is the standout feature, a stunning 42,000-square-foot sanctuary — and the largest out of all the Ritz-Carlton properties in the country. There are abundant indoor and outdoor spaces for relaxation, with fireside lounges, a rooftop terrace, a swimming pool, and more.The spa menu features locally inspired, luxury rituals that pay tribute to the scenic California landscape. For instance, the Hollywood facial is a decadent treatment integrating three of the industry's top-trending technologies: HydraFacialä, Nutraceuticals, and NuFace Microcurrent. Or branch out with the Spirulina Wrap, which uses live spirulina algae to revitalize the skin. Other services include acupuncture, massages, skincare, and hair and nail services.When it's time to eat, on-site restaurants Angel Oak steakhouse and 'O' Bar + Kitchen offer locally sourced cuisine and wines.COVID-19 procedures are available here. Castle Hot Springs Castle Hot Springs dates back to 1896 and was recently renovated. Tripadvisor Book Castle Hot SpringsCategory: LuxuryLocation: Morristown, ArizonaTypical starting/peak prices: $1,500/$2,100Best for: Couples, families, groups of friendsOn-site amenities: Resort pool, hot springs pools, on-property farm, Arizona's first Via Ferrata cable climbing courseSpa features: Multiple mineral pools, spa treatments in alfresco cabanas, yoga, meditationPros: Meals are included at this recently overhauled resort. Deeply steeped in history, it's all about wellness through local, natural means, such as an on-site farm operation and hot springs. Cons: While most reviews are overwhelmingly positive, critical reviewers noted spotty service compared with their expectation for the price point.Castle Hot Springs is Arizona's first luxury resort, originally founded in 1896 as a holistic wellness retreat. Situated 50 miles outside of Phoenix in the Sonoran Desert, the 34-room resort feels a world apart from the demands of urban life and incorporates ancient hot springs and a digital detox philosophy into every stay.Historically, visitors came for the minerals' cures for ailments like rheumatism, gout, arthritis, and general aches and pains, which the pools were said to relieve. More than 200,000 gallons of mineral-rich water still flow through the pools each day.All guest suites (bungalows, cottages, and cabins) feature outdoor stone tubs plumbed with hot springs water, and telescopes outside lodgings encourage stargazing. Wellness features heavily, with a slate of offerings including access to thermal waters, which cascade into three pools ranging from 96 degrees to 86 degrees. The natural waters take on colors that reflect the minerals running through them: Lithium is a deep purple shade, iron looks red, and oxidized copper is in blues and greens. Other wellness spa services, yoga, and meditation are provided in custom cabanas set along the spring water creek under palm trees for a wholly rejuvenating experience.COVID-19 procedures are available here. Miraval Arizona Resort & Spa Arizona's Miraval is known around the world as a go-to destination for wellness enthusiasts. Tripadvisor Book Miraval Arizona Resort & SpaCategory: LuxuryLocation: Tucson, ArizonaTypical starting/peak price: $1,138/$1,518Best for: Couples, groups of friends, solo travelersOn-site amenities: Spa, pool, fitness and wellness classes, tennis, golf, hiking on Camelback MountainSpa features: Ayurveda, energy work, traditional massage, acupuncture, multiple meditation spaces including two labyrinthsPros: Meals and activities are included, which packs the steep nightly room rate with value.Cons: Not everything is included. Expect to splash out a lot more for spa treatments and other extras. Situated on 400 acres outside Tucson, nestled in the Santa Catalina Mountains, Miraval is a well-established and world-renowned domestic wellness getaway.Guests are asked to unplug and tuck their devices away before checking into spacious suites that come with hot tubs, walk-in showers, fireplaces, dining areas, and private patios. Extra wellness-minded touches include an organic pillow menu, a Tibetan singing bowl, coloring books, a community journal, and an essential oil diffuser, available on request. Room rates also include a nightly credit, all meals, and more than 200 classes and activities. Spa treatments are not included, but shouldn't be missed at the Life in Balance Spa, which features a myriad of services including Ayurveda, energy work, traditional massage, and acupuncture.Many spaces on-site encourage reflection and meditation including two labyrinths, an outdoor kiva, and a designated quiet room with mountain views. Experiences here combine yoga, meditation, and wellness, with spiritual journeys, culinary workshops, and outdoor activities.COVID-19 procedures are available here. Four Seasons Resort Lanai and Sensei Lanai, A Four Seasons Resort Four Seasons Resort Lanai and Sensei Lanai offer wellness, activities, and natural beauty on the Hawaiian island. Tripadvisor Book Four Seasons Resort Lanai and Sensei Lanai, A Four Seasons ResortCategory: LuxuryLocation: Lanai, HawaiiTypical starting/peak prices: $1,700/$2,585Best for: Families (Four Seasons Resort Lanai only), couples, business travelers, groups of friends, solo travelers (Sensei Lanai)On-site amenities: Pools, gardens, wellness offerings, activities (including archery and shooting range), food and drink from celebrity chef Nobu Matsuhisa Spa features: Private spa hales with steam and infrared saunas, traditional Japanese soaking tubs, outdoor showers, pools, one-on-one healing sessions like guided meditation or nutrition, couples suites, locally inspired treatmentsPros: Wellness offerings here are unparalleled, especially at Sensei where it's the focus. Airfare from Honolulu on Lanai Air is always included with Sensei Lanai. The natural beauty and service are among the world's most impeccable. Cons: Kids are not permitted at Sensei Lanai, although they are doted upon at Four Seasons Resort Lanai.This secluded 90,000-acre paradise on Hawaii's island of Lanai offers luxe accommodations at the beachfront Four Seasons Resort Lanai or wellness destination, Sensei Lanai, A Four Seasons Resort.The Four Seasons Resort Lanai is perfectly luxe with 213 guest rooms, multiple outdoor restaurants (including Nobu Lanai), Four Seasons' Kids for All Seasons kids' club, a beach and pool with seating areas tucked among tropical gardens, luxury boutiques, and an array of included classes and events.But if wellness is on your mind, and you don't have kids in tow, choose the adults-only Sensei Lanai, A Four Seasons Resort instead, set on 24 acres where spa where wellness is the top priority.Visitors select a curated well-being experience or design their own a la carte itineraries from options that include guided sessions on mindset or nutrition, as well as spa treatments, salon services, and a range of land and sea activities. Daily small-group yoga, fitness, and meditation, as well as guided hikes and weekly lectures are included.The 96-room resort offers Chef Nobu Matsuhisa's classics as well as menu selections that incorporate Sensei's nutritional philosophy created in partnership with Sensei's co-founder Dr. David Agus. The outdoor facilities include a 24-hour fitness center, movement studios, a yoga pavilion and outdoor yoga spaces, an 18-hole putting course, onsen baths, an oasis pool with lap lanes, and gardens with lush flora as well as sculpture and art. COVID-19 procedures are available here. Amangiri Amangiri is the wellness favorite for celebrities and A-listers looking to recharge in the desert. TripAdvisor/emtrip27 Book AmangiriCategory: LuxuryLocation: Canyon Point, UtahTypical starting/peak prices: $1,931/$3,500Best for: Couples, familiesOn-site amenities: Restaurant, 25,000-square-foot Aman Spa, national park tours, private air toursSpa features: Redwood-paneled treatment rooms, movement and fitness studios, 2 steam rooms, yoga, pilates, holistic Navajo-inspired therapiesPros: Amangiri is surrounded by unparalleled natural beauty and privacy. The design and service are otherworldly, equally indulgent for adventurers and luxury lovers.Cons: Though this property is close to flawless, for the over-the-top price point, guests expect impeccable service and are hyper-aware of even the smallest shortcomings.Amangiri is a celeb-adored Utah property situated on 600 acres in a protected valley, famous for sweeping views over towering mesas and dramatically stratified rock facing Grand Staircase-Escalante National Monument. The resort is built around a spectacular swimming pool defined by a jaw-dropping stone escarpment. There are 34 suites, many with private swimming pools and roof terraces. Suites are large with clean lines and natural materials, reflecting the surrounding Utah desert. Think white stone floors, concrete walls, natural timbers, and blackened steel finishings. Each suite has a fireplace and an outdoor lounge area. The Wellness Center at Amangani is a relaxing retreat with four redwood-paneled treatment rooms, movement and fitness studios and two steam rooms. Book beauty treatments and restorative therapies inspired by the holistic wellbeing traditions of the Navajo, or sign up for a day of wildlife treks, a private yoga, or a pilates session. Nourishing treatments, seasonal rituals, and holistic massages are all designed to help you unwind. In 2021, the resort introduced the Cave Peak Stairway, an installation that rises 400 feet above the ground, for outrageous views of the property. Thrill-seekers can climb the 120 steps leading from the resort's existing Cave Peak Via Ferrata Trail with just open air below.COVID-19 procedures are available here. FAQ: Hotels with spas Can I use a hotel spa without staying overnight?Whether or not you may use a hotel spa without staying overnight depends on the individual hotel and its policies. In some cases, hotels restrict the use of their spas and pool facilities to guests only in order to keep the experience intimate and private. In other cases, non-overnight guests may pay for a day pass to access the facilities, either directly through the hotel or through a third-party platform such as ResortPass, or visit simply by booking a treatment.Does spa access always come with the cost of a room night?Staying at a hotel doesn't always guarantee spa entry. In some cases, such as Awana Spa in Las Vegas, the room night might cost as low as $97 but using the spa is not included in the price, and spa access starts at $100 for hotel guests. Access is included, however, with the purchase of a 50-minute or longer treatment. Most hotels on this list have similar policiesWhere are the best hotels with spas in the US?As demonstrated by this list, there are excellent destination hotel spas throughout the United States, from urban day spas to remote retreats. Many are clustered around destinations known for wellness, such as Arizona and California, or destinations known for healing natural environments, like Hawaii. Others are simply known for providing flat-out luxury to travelers with money to spend, such as in Miami or Las Vegas.Is it safe to stay in a hotel?The CDC advises that fully vaccinated people can safely travel domestically. While hotels do provide opportunities for face-to-face interactions with staff and other guests in common spaces like check-in desks, lobbies, and dining venues, experts say guests who exercise proper precautions can stay safely in hotels. No travel is completely risk-free and we recommend following CDC current guidelines as well as all applicable local protocols at the time of travel. How we selected the best hotels with spas Hotels with spas are located throughout the US only.Each has a Trip Advisor rating of "Very Good" or above with a substantial number of reviews, and is highly rated on other trusted traveler platforms like Booking.com.We focused on amenity-rich properties at a range of price points, starting from just $97 and ranging to well over $1,000 per night for famously posh properties with lavish inclusions.We looked for hotels with spas that had extensive offerings including innovative technologies and holistic wellness approaches. We also sought spas that were large and beautifully designed.In addition to spas, we selected properties with notable amenities like pools, restaurants, and other notable features. And we focused on desirable destinations, from flashy urban to serene natural settings.Each hotel promotes rigorous COVID-19 policies and protocols to reassure and protect guests. More of the most incredible hotels Tripadvisor The best luxury hotels in the USThe most affordable spa hotels in the worldThe best hotel pools in the USThe best hotels with private plunge poolsThe most romantic hotels in the USThe best hotels with affordable overwater bungalowsThe best beach hotels in the USThe best island hotels in the US Read the original article on Business Insider.....»»

Category: worldSource: nytSep 22nd, 2021

EBKDY vs. HDB: Which Stock Should Value Investors Buy Now?

EBKDY vs. HDB: Which Stock Is the Better Value Option? Investors interested in stocks from the Banks - Foreign sector have probably already heard of Erste Group Bank AG (EBKDY) and HDFC Bank (HDB). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.Erste Group Bank AG has a Zacks Rank of #2 (Buy), while HDFC Bank has a Zacks Rank of #3 (Hold) right now. This means that EBKDY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.EBKDY currently has a forward P/E ratio of 9.80, while HDB has a forward P/E of 26.70. We also note that EBKDY has a PEG ratio of 0.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HDB currently has a PEG ratio of 1.23.Another notable valuation metric for EBKDY is its P/B ratio of 0.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, HDB has a P/B of 4.47.These metrics, and several others, help EBKDY earn a Value grade of B, while HDB has been given a Value grade of D.EBKDY sticks out from HDB in both our Zacks Rank and Style Scores models, so value investors will likely feel that EBKDY is the better option right now. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Erste Group Bank AG (EBKDY): Free Stock Analysis Report HDFC Bank Limited (HDB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 22nd, 2021

EWBC or SIVB: Which Is the Better Value Stock Right Now?

EWBC vs. SIVB: Which Stock Is the Better Value Option? Investors interested in stocks from the Banks - West sector have probably already heard of East West Bancorp (EWBC) and SVB Financial (SIVB). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.East West Bancorp and SVB Financial are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that EWBC likely has seen a stronger improvement to its earnings outlook than SIVB has recently. But this is just one piece of the puzzle for value investors.Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.EWBC currently has a forward P/E ratio of 11.40, while SIVB has a forward P/E of 19.28. We also note that EWBC has a PEG ratio of 1.14. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SIVB currently has a PEG ratio of 2.41.Another notable valuation metric for EWBC is its P/B ratio of 1.75. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SIVB has a P/B of 3.25.These are just a few of the metrics contributing to EWBC's Value grade of B and SIVB's Value grade of C.EWBC has seen stronger estimate revision activity and sports more attractive valuation metrics than SIVB, so it seems like value investors will conclude that EWBC is the superior option right now. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report East West Bancorp, Inc. (EWBC): Free Stock Analysis Report SVB Financial Group (SIVB): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 22nd, 2021

AMG vs. BLK: Which Stock Should Value Investors Buy Now?

AMG vs. BLK: Which Stock Is the Better Value Option? Investors interested in Financial - Investment Management stocks are likely familiar with Affiliated Managers Group (AMG) and BlackRock (BLK). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.Right now, Affiliated Managers Group is sporting a Zacks Rank of #2 (Buy), while BlackRock has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AMG has an improving earnings outlook. However, value investors will care about much more than just this.Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.AMG currently has a forward P/E ratio of 8.65, while BLK has a forward P/E of 22.10. We also note that AMG has a PEG ratio of 0.58. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BLK currently has a PEG ratio of 2.21.Another notable valuation metric for AMG is its P/B ratio of 1.94. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BLK has a P/B of 3.57.Based on these metrics and many more, AMG holds a Value grade of A, while BLK has a Value grade of D.AMG has seen stronger estimate revision activity and sports more attractive valuation metrics than BLK, so it seems like value investors will conclude that AMG is the superior option right now. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Affiliated Managers Group, Inc. (AMG): Free Stock Analysis Report BlackRock, Inc. (BLK): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 22nd, 2021

OLN or RDSMY: Which Is the Better Value Stock Right Now?

OLN vs. RDSMY: Which Stock Is the Better Value Option? Investors with an interest in Chemical - Diversified stocks have likely encountered both Olin (OLN) and Koninklijke DSM NV (RDSMY). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.Olin has a Zacks Rank of #2 (Buy), while Koninklijke DSM NV has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OLN is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.OLN currently has a forward P/E ratio of 6.13, while RDSMY has a forward P/E of 36.86. We also note that OLN has a PEG ratio of 0.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RDSMY currently has a PEG ratio of 2.52.Another notable valuation metric for OLN is its P/B ratio of 3.45. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, RDSMY has a P/B of 4.57.Based on these metrics and many more, OLN holds a Value grade of A, while RDSMY has a Value grade of C.OLN has seen stronger estimate revision activity and sports more attractive valuation metrics than RDSMY, so it seems like value investors will conclude that OLN is the superior option right now. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Olin Corporation (OLN): Free Stock Analysis Report Koninklijke DSM NV (RDSMY): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 22nd, 2021

ADRNY vs. CHWY: Which Stock Is the Better Value Option?

ADRNY vs. CHWY: Which Stock Is the Better Value Option? Investors interested in Consumer Products - Staples stocks are likely familiar with Ahold NV (ADRNY) and Chewy (CHWY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.Ahold NV has a Zacks Rank of #2 (Buy), while Chewy has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that ADRNY likely has seen a stronger improvement to its earnings outlook than CHWY has recently. But this is only part of the picture for value investors.Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.ADRNY currently has a forward P/E ratio of 13.62, while CHWY has a forward P/E of 988.82. We also note that ADRNY has a PEG ratio of 3.90. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CHWY currently has a PEG ratio of 49.44.Another notable valuation metric for ADRNY is its P/B ratio of 2.25. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CHWY has a P/B of 418.30.Based on these metrics and many more, ADRNY holds a Value grade of A, while CHWY has a Value grade of C.ADRNY has seen stronger estimate revision activity and sports more attractive valuation metrics than CHWY, so it seems like value investors will conclude that ADRNY is the superior option right now. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ahold NV (ADRNY): Free Stock Analysis Report Chewy Inc. (CHWY): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 22nd, 2021

Notable Option Activity From Monday September 20th

Yesterday was a big day in the markets with major indexes dropping through support and suffering large losses. Q2 2021 hedge fund letters, conferences and more A Look At Some Notable Option Activity Option volume went through the roof, as it usually does on volatile days like that. Let’s look at some notable option activity […] Yesterday was a big day in the markets with major indexes dropping through support and suffering large losses. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Walter Schloss Series in PDF Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q2 2021 hedge fund letters, conferences and more A Look At Some Notable Option Activity Option volume went through the roof, as it usually does on volatile days like that. Let’s look at some notable option activity from yesterday. The most notable stock was Smile Direct Club (SDC) which saw option volume of over 340,00 contracts. This stock has been targeted by the Reddit / wallstreetbets crowd as it was also the most mentioned stock on that platform. SDC has also seen implied volatility going through the roof, rising from 55% to 176% in recent months. Palantir (PLTR), Tesla (TSLA), Apple (AAPL) and Contextlogic (WISH) made up the top 5 most mentioned stocks. Other stocks to see unusual options volume were Affirm Holdings (AFRM), Gilead (GILD), Cemeco (CCJ), WYNN Resorts (WYNN), Alcoa Corporation (AA), Dow Inc (DOW) and Novavax (NVAX). AFRM traded three and a half times more option volume than usual with 76% of those being in call options. GILD traded three times the average number of contracts with 88% being call options. CCJ traded nearly three times the average volume with 90% being call options. WYNN traded two and a half times average volume but only 53% were in the calls. AA traded one and half times the average volume with 46% being in the call options. One particularly active strike was the $48 call strike expiring on October 15th. That contract trade over 4,300 times. DOW traded two times the average volume with 44% being in call options. The most active strike for DOW was the $62.50 call option expiring on November 19th with over 1,100 contracts traded. NVAX traded fewer total contracts than normal, however, there was a lot of activity in the October 15, $195 strike put options with over 2,000 contracts traded. Learn more about options trading here. Article By Gavin McMaster, The Financially Independent Millennial Updated on Sep 22, 2021, 11:31 am (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkSep 22nd, 2021

Futures Bounce On Evergrande Reprieve With Fed Looming

Futures Bounce On Evergrande Reprieve With Fed Looming Despite today's looming hawkish FOMC meeting in which Powell is widely expected to unveil that tapering is set to begin as soon as November and where the Fed's dot plot may signal one rate hike in 2022, futures climbed as investor concerns over China's Evergrande eased after the property developer negotiated a domestic bond payment deal. Commodities rallied while the dollar was steady. Contracts on the S&P 500 and Nasdaq 100 flipped from losses to gains as China’s central bank boosted liquidity when it injected a gross 120BN in yuan, the most since January... ... and investors mulled a vaguely-worded statement from the troubled developer about an interest payment.  S&P 500 E-minis were up 23.0 points, or 0.53%, at 7:30 a.m. ET. Dow E-minis were up 199 points, or 0.60%, and Nasdaq 100 E-minis were up 44.00 points, or 0.29%. Among individual stocks, Fedex fell 5.8% after the delivery company cut its profit outlook on higher costs and stalled growth in shipments. Morgan Stanley says it sees the company’s 1Q issues getting “tougher from here.” Commodity-linked oil and metal stocks led gains in premarket trade, while a slight rise in Treasury yields supported major banks. However, most sectors were nursing steep losses in recent sessions. Here are some of the biggest U.S. movers: Adobe (ADBE US) down 3.1% after 3Q update disappointed the high expectations of investors, though the broader picture still looks solid, Morgan Stanley said in a note Freeport McMoRan (FCX US), Cleveland- Cliffs (CLF US), Alcoa (AA US) and U.S. Steel (X US) up 2%-3% premarket, following the path of global peers as iron ore prices in China rallied Aethlon Medical (AEMD US) and Exela Technologies (XELAU US) advance along with other retail traders’ favorites in the U.S. premarket session. Aethlon jumps 21%; Exela up 8.3% Other so-called meme stocks also rise: ContextLogic +1%; Clover Health +0.9%; Naked Brand +0.9%; AMC +0.5% ReWalk Robotics slumps 18% in U.S. premarket trading, a day after nearly doubling in value Stitch Fix (SFIX US) rises 15.7% in light volume after the personal styling company’s 4Q profit and sales blew past analysts’ expectations Hyatt Hotels (H US) seen opening lower after the company launches a seven-million-share stock offering Summit Therapeutics (SMMT US) shares fell as much as 17% in Tuesday extended trading after it said the FDA doesn’t agree with the change to the primary endpoint that has been implemented in the ongoing Phase III Ri-CoDIFy studies when combining the studies Marin Software (MRIN US) surged more than 75% Tuesday postmarket after signing a new revenue-sharing agreement with Google to develop its enterprise technology platforms and software products The S&P 500 had fallen for 10 of the past 12 sessions since hitting a record high, as fears of an Evergrande default exacerbated seasonally weak trends and saw investors pull out of stocks trading at lofty valuations. The Nasdaq fell the least among its peers in recent sessions, as investors pivoted back into big technology names that had proven resilient through the pandemic. Focus now turns to the Fed's decision, due at 2 p.m. ET where officials are expected to signal a start to scaling down monthly bond purchases (see our preview here).  The Fed meeting comes after a period of market volatility stoked by Evergrande’s woes. China’s wider property-sector curbs are also feeding into concerns about a slowdown in the economic recovery from the pandemic. “Chair Jerome Powell could hint at the tapering approaching shortly,” said Sébastien Barbé, a strategist at Credit Agricole CIB. “However, given the current uncertainty factors (China property market, Covid, pace of global slowdown), the Fed should remain cautious when it comes to withdrawing liquidity support.” Meanwhile, confirming what Ray Dalio said that the taper will just bring more QE, Governing Council member Madis Muller said the  European Central Bank may boost its regular asset purchases once the pandemic-era emergency stimulus comes to an end. “Dovish signals could unwind some of the greenback’s gains while offering relief to stock markets,” Han Tan, chief market analyst at Exinity Group, wrote in emailed comments. A “hawkish shift would jolt markets, potentially pushing Treasury yields and the dollar past the upper bound of recent ranges, while gold and equities would sell off hunting down the next levels of support.” China avoided a major selloff as trading resumed following a holiday, after the country’s central bank boosted its injection of short-term cash into the financial system. MSCI’s Asia-Pacific index declined for a third day, dragged lower by Japan. Stocks were also higher in Europe. Basic resources - which bounced from a seven month low - and energy were among the leading gainers in the Stoxx Europe 600 index as commodity prices steadied after Beijing moved to contain fears of a spiraling debt crisis. Entain Plc rose more than 7%, extending Tuesday’s gain as it confirmed it received a takeover proposal from DraftKings Inc. Peer Flutter Entertainment Plc climbed after settling a legal dispute.  Here are some of the biggest European movers today: Entain shares jump as much as 11% after DraftKings Inc. offered to acquire the U.K. gambling company for about $22.4 billion. Vivendi rises as much as 3.1% in Paris, after Tuesday’s spinoff of Universal Music Group. Legrand climbs as much as 2.1% after Exane BNP Paribas upgrades to outperform and raises PT to a Street-high of EU135. Orpea shares falls as much as 2.9%, after delivering 1H results that Jefferies (buy) says were a “touch” below consensus. Bechtle slides as much as 5.1% after Metzler downgrades to hold from buy, saying persistent supply chain problems seem to be weighing on growth. Sopra Steria drops as much as 4.1% after Stifel initiates coverage with a sell, citing caution on company’s M&A strategy Despite the Evergrande announcement, Asian stocks headed for their longest losing streak in more than a month amid continued China-related concerns, with traders also eying policy decisions from major central banks. The MSCI Asia Pacific Index dropped as much as 0.7% in its third day of declines, with TSMC and Keyence the biggest drags. China’s CSI 300 tumbled as much as 1.9% as the local market reopened following a two-day holiday. However, the gauge came off lows after an Evergrande unit said it will make a bond interest payment and as China’s central bank boosted liquidity.  Taiwan’s equity benchmark led losses in Asia on Wednesday, dragged by TSMC after a two-day holiday, while markets in Hong Kong and South Korea were closed. Key stock gauges in Australia, Indonesia and Vietnam rose “A liquidity injection from the People’s Bank of China accompanied the Evergrande announcement, which only served to bolster sentiment further,” according to DailyFX’s Thomas Westwater and Daniel Dubrovsky. “For now, it appears that market-wide contagion risk linked to a potential Evergrande collapse is off the table.” Japanese equities fell for a second day amid global concern over China’s real-estate sector, as the Bank of Japan held its key stimulus tools in place while flagging pressures on the economy. Electronics makers were the biggest drag on the Topix, which declined 1%. Daikin and Fanuc were the largest contributors to a 0.7% loss in the Nikkei 225. The BOJ had been expected to maintain its policy levers ahead of next week’s key ruling party election. Traders are keenly awaiting the Federal Reserve’s decision due later for clues on the U.S. central banks plan for tapering stimulus. “Markets for some time have been convinced that the BOJ has reached the end of the line on normalization and will remain in a holding pattern on policy until at least April 2023 when Governor Kuroda is scheduled to leave,” UOB economist Alvin Liew wrote in a note. “Attention for the BOJ will now likely shift to dealing with the long-term climate change issues.” In the despotic lockdown regime that is Australia, the S&P/ASX 200 index rose 0.3% to close at 7,296.90, reversing an early decline in a rally led by mining and energy stocks. Banks closed lower for the fourth day in a row. Champion Iron was among the top performers after it was upgraded at Citi. IAG was among the worst performers after an earthquake caused damage to buildings in Melbourne. In New Zealand, the S&P/NZX 50 index rose 0.3% to 13,215.80 In FX, commodity currencies rallied as concerns about China Evergrande Group’s debt troubles eased as China’s central bank boosted liquidity and investors reviewed a statement from the troubled developer about an interest payment. Overnight implied volatility on the pound climbed to the highest since March ahead of Bank of England’s meeting on Thursday. The British pound weakened after Business Secretary Kwasi Kwarteng warnedthat people should prepare for longer-term high energy prices amid a natural-gas shortage that sent power costs soaring. Several U.K. power firms have stopped taking in new clients as small energy suppliers struggle to meet their previous commitments to sell supplies at lower prices. Overnight volatility in the euro rises above 10% for the first time since July ahead of the Federal Reserve’s monetary policy decision announcement. The Aussie jumped as much as 0.5% as iron-ore prices rebounded. Spot surged through option-related selling at 0.7240 before topping out near 0.7265 strikes expiring Wednesday, according to Asia- based FX traders.  Elsewhere, the yen weakened and commodity-linked currencies such as the Australian dollar pushed higher. In rates, the dollar weakened against most of its Group-of-10 peers. Treasury futures were under modest pressure in early U.S. trading, leaving yields cheaper by ~1.5bp from belly to long-end of the curve. The 10-year yield was at ~1.336% steepening the 2s10s curve by ~1bp as the front-end was little changed. Improved risk appetite weighed; with stock futures have recovering much of Tuesday’s losses as Evergrande concerns subside. Focal point for Wednesday’s session is FOMC rate decision at 2pm ET.   FOMC is expected to suggest it will start scaling back asset purchases later this year, while its quarterly summary of economic projections reveals policy makers’ expectations for the fed funds target in coming years in the dot-plot update; eurodollar positions have emerged recently that anticipate a hawkish shift Bitcoin dropped briefly below $40,000 for the first time since August amid rising criticism from regulators, before rallying as the mood in global markets improved. In commodities, Iron ore halted its collapse and metals steadied. Oil advanced for a second day. Bitcoin slid below $40,000 for the first time since early August before rebounding back above $42,000.   To the day ahead now, and the main highlight will be the aforementioned Federal Reserve decision and Chair Powell’s subsequent press conference. Otherwise on the data side, we’ll get US existing home sales for August, and the European Commission’s advance consumer confidence reading for the Euro Area in September. Market Snapshot S&P 500 futures up 0.4% to 4,362.25 STOXX Europe 600 up 0.5% to 461.19 MXAP down 0.7% to 199.29 MXAPJ down 0.4% to 638.39 Nikkei down 0.7% to 29,639.40 Topix down 1.0% to 2,043.55 Hang Seng Index up 0.5% to 24,221.54 Shanghai Composite up 0.4% to 3,628.49 Sensex little changed at 59,046.84 Australia S&P/ASX 200 up 0.3% to 7,296.94 Kospi up 0.3% to 3,140.51 Brent Futures up 1.5% to $75.47/bbl Gold spot up 0.0% to $1,775.15 U.S. Dollar Index little changed at 93.26 German 10Y yield rose 0.6 bps to -0.319% Euro little changed at $1.1725 Top Overnight News from Bloomberg What would it take to knock the U.S. recovery off course and send Federal Reserve policy makers back to the drawing board? Not much — and there are plenty of candidates to deliver the blow The European Central Bank will discuss boosting its regular asset purchases once the pandemic-era emergency stimulus comes to an end, but any such increase is uncertain, Governing Council member Madis Muller said Investors seeking hints about how Beijing plans to deal with China Evergrande Group’s debt crisis are training their cross hairs on the central bank’s liquidity management A quick look at global markets courtesy of Newsquawk Asian equity markets traded mixed as caution lingered ahead of upcoming risk events including the FOMC, with participants also digesting the latest Evergrande developments and China’s return to the market from the Mid-Autumn Festival. ASX 200 (+0.3%) was positive with the index led higher by the energy sector after a rebound in oil prices and as tech also outperformed, but with gains capped by weakness in the largest-weighted financials sector including Westpac which was forced to scrap the sale of its Pacific businesses after failing to secure regulatory approval. Nikkei 225 (-0.7%) was subdued amid the lack of fireworks from the BoJ announcement to keep policy settings unchanged and ahead of the upcoming holiday closure with the index only briefly supported by favourable currency outflows. Shanghai Comp. (+0.4%) was initially pressured on return from the long-weekend and with Hong Kong markets closed, but pared losses with risk appetite supported by news that Evergrande’s main unit Hengda Real Estate will make coupon payments due tomorrow, although other sources noted this is referring to the onshore bond payments valued around USD 36mln and that there was no mention of the offshore bond payments valued at USD 83.5mln which are also due tomorrow. Meanwhile, the PBoC facilitated liquidity through a CNY 120bln injection and provided no surprises in keeping its 1-year and 5-year Loan Prime Rates unchanged for the 17th consecutive month at 3.85% and 4.65%, respectively. Finally, 10yr JGBs were flat amid the absence of any major surprises from the BoJ policy announcement and following the choppy trade in T-notes which were briefly pressured in a knee-jerk reaction to the news that Evergrande’s unit will satisfy its coupon obligations tomorrow, but then faded most of the losses as cautiousness prevailed. Top Asian News Gold Steady as Traders Await Outcome of Fed Policy Meeting Evergrande Filing on Yuan Bond Interest Leaves Analysts Guessing Singapore Category E COE Price Rises to Highest Since April 2014 Asian Stocks Fall for Third Day as Focus Turns to Central Banks European equities (Stoxx 600 +0.5%) trade on a firmer footing in the wake of an encouraging APAC handover. Focus overnight was on the return of Chinese participants from the Mid-Autumn Festival and news that Evergrande’s main unit, Hengda Real Estate will make coupon payments due tomorrow; however, we await indication as to whether they will meet Thursday’s offshore payment deadline as well. Furthermore, the PBoC facilitated liquidity through a CNY 120bln injection whilst keeping its 1-year and 5-year Loan Prime Rates unchanged (as expected). Note, despite gaining yesterday and today, thus far, the Stoxx 600 is still lower to the tune of 0.7% on the week. Stateside, futures are also trading on a firmer footing ahead of today’s FOMC policy announcement, at which, market participants will be eyeing any clues for when the taper will begin and digesting the latest dot plot forecasts. Furthermore, the US House voted to pass the bill to fund the government through to December 3rd and suspend the debt limit to end-2022, although this will likely be blocked by Senate Republicans. Back to Europe, sectors are mostly firmer with outperformance in Basic Resources and Oil & Gas amid upside in the metals and energy complex. Elsewhere, Travel & Leisure is faring well amid further upside in Entain (+6.1%) with the Co. noting it rejected an earlier approach from DraftKings at GBP 25/shr with the new offer standing at GBP 28/shr. Additionally for the sector, Flutter Entertainment (+4.1%) are trading higher after settling the legal dispute between the Co. and Commonwealth of Kentucky. Elsewhere, in terms of deal flow, Iliad announced that it is to acquire UPC Poland for around USD 1.8bln. Top European News Energy Cost Spike Gets on EU Ministers’ Green Deal Agenda Travel Startup HomeToGo Gains in Frankfurt Debut After SPAC Deal London Stock Exchange to Shut Down CurveGlobal Exchange EU Banks Expected to Add Capital for Climate Risk, EBA Says In FX, trade remains volatile as this week’s deluge of global Central Bank policy meetings continues to unfold amidst fluctuations in broad risk sentiment from relatively pronounced aversion at various stages to a measured and cautious pick-up in appetite more recently. Hence, the tide is currently turning in favour of activity, cyclical and commodity currencies, albeit tentatively in the run up to the Fed, with the Kiwi and Aussie trying to regroup on the 0.7000 handle and 0.7350 axis against their US counterpart, and the latter also striving to shrug off negative domestic impulses like a further decline below zero in Westpac’s leading index and an earthquake near Melbourne. Next up for Nzd/Usd and Aud/Usd, beyond the FOMC, trade data and preliminary PMIs respectively. DXY/CHF/EUR/CAD - Notwithstanding the overall improvement in market tone noted above, or another major change in mood and direction, the Dollar index appears to have found a base just ahead of 93.000 and ceiling a similar distance away from 93.500, as it meanders inside those extremes awaiting US existing home sales that are scheduled for release before the main Fed events (policy statement, SEP and post-meeting press conference from chair Powell). Indeed, the Franc, Euro and Loonie have all recoiled into tighter bands vs the Greenback, between 0.9250-26, 1.1739-17 and 1.2831-1.2770, but with the former still retaining an underlying bid more evident in the Eur/Chf cross that is consolidating under 1.0850 and will undoubtedly be acknowledged by the SNB tomorrow. Meanwhile, Eur/Usd has hardly reacted to latest ECB commentary from Muller underpinning that the APP is likely to be boosted once the PEPP envelope is closed, though Usd/Cad is eyeing a firm rebound in oil prices in conjunction with hefty option expiry interest at the 1.2750 strike (1.8 bn) that may prevent the headline pair from revisiting w-t-d lows not far beneath the half round number. GBP/JPY - The major laggards, as Sterling slips slightly further beneath 1.3650 against the Buck to a fresh weekly low and Eur/Gbp rebounds from circa 0.8574 to top 0.8600 on FOMC day and T-1 to super BoE Thursday. Elsewhere, the Yen has lost momentum after peaking around 109.12 and still not garnering sufficient impetus to test 109.00 via an unchanged BoJ in terms of all policy settings and guidance, as Governor Kuroda trotted out the no hesitation to loosen the reins if required line for the umpteenth time. However, Usd/Jpy is holding around 109.61 and some distance from 1.1 bn option expiries rolling off between 109.85-110.00 at the NY cut. SCANDI/EM - Brent’s revival to Usd 75.50+/brl from sub-Usd 73.50 only yesterday has given the Nok another fillip pending confirmation of a Norges Bank hike tomorrow, while the Zar has regained some poise with the aid of firmer than forecast SA headline and core CPI alongside a degree of retracement following Wednesday’s breakdown of talks on a pay deal for engineering workers that prompted the union to call a strike from early October. Similarly, the Cnh and Cny by default have regrouped amidst reports that the CCP is finalising details to restructure Evergrande into 3 separate entities under a plan that will see the Chinese Government take control. In commodities, WTI and Brent are firmer this morning though once again fresh newsflow for the complex has been relatively slim and largely consisting of gas-related commentary; as such, the benchmarks are taking their cue from the broader risk tone (see equity section). The improvement in sentiment today has brought WTI and Brent back in proximity to being unchanged on the week so far as a whole; however, the complex will be dictated directly by the EIA weekly inventory first and then indirectly, but perhaps more pertinently, by today’s FOMC. On the weekly inventories, last nights private release was a larger than expected draw for the headline and distillate components, though the Cushing draw was beneath expectations; for today, consensus is a headline draw pf 2.44mln. Moving to metals where the return of China has seen a resurgence for base metals with LME copper posting upside of nearly 3.0%, for instance. Albeit there is no fresh newsflow for the complex as such, so it remains to be seen how lasting this resurgence will be. Finally, spot gold and silver are firmer but with the magnitude once again favouring silver over the yellow metal. US Event Calendar 10am: Aug. Existing Home Sales MoM, est. -1.7%, prior 2.0% 2pm: Sept. FOMC Rate Decision (Lower Boun, est. 0%, prior 0% DB's Jim Reid concludes the overnight wrap All eyes firmly on China this morning as it reopens following a 2-day holiday. As expected the indices there have opened lower but the scale of the declines are being softened by the PBoC increasing its short term cash injections into the economy. They’ve added a net CNY 90bn into the system. On Evergrande, we’ve also seen some positive headlines as the property developers’ main unit Hengda Real Estate Group has said that it will make coupon payment for an onshore bond tomorrow. However, the exchange filing said that the interest payment “has been resolved via negotiations with bondholders off the clearing house”. This is all a bit vague and doesn’t mention the dollar bond at this stage. Meanwhile, Bloomberg has reported that Chinese authorities have begun to lay the groundwork for a potential restructuring that could be one of the country’s biggest, assembling accounting and legal experts to examine the finances of the group. All this follows news from Bloomberg yesterday that Evergrande missed interest payments that had been due on Monday to at least two banks. In terms of markets the CSI (-1.11%), Shanghai Comp (-0.29%) and Shenzhen Comp (-0.53%) are all lower but have pared back deeper losses from the open. We did a flash poll in the CoTD yesterday (link here) and after over 700 responses in a couple of hours we found only 8% who we thought Evergrande would still be impacting financial markets significantly in a month’s time. 24% thought it would be slightly impacting. The other 68% thought limited or no impact. So the world is relatively relaxed about contagion risk for now. The bigger risk might be the knock on impact of weaker Chinese growth. So that’s one to watch even if you’re sanguine on the systemic threat. Craig Nicol in my credit team did a good note yesterday (link here) looking at the contagion risk to the broader HY market. I thought he summed it up nicely as to why we all need to care one way or another in saying that “Evergrande is the largest corporate, in the largest sector, of the second largest economy in the world”. For context AT&T is the largest corporate borrower in the US market and VW the largest in Europe. Turning back to other Asian markets now and the Nikkei (-0.65%) is down but the Hang Seng (+0.51%) and Asx (+0.58%) are up. South Korean markets continue to remain closed for a holiday. Elsewhere, yields on 10y USTs are trading flattish while futures on the S&P 500 are up +0.10% and those on the Stoxx 50 are up +0.21%. Crude oil prices are also up c.+1% this morning. In other news, the Bank of Japan policy announcement overnight was a non-event as the central bank maintained its yield curve target while keeping the policy rate and asset purchases plan unchanged. The central bank also unveiled more details of its green lending program and said that it would immediately start accepting applications and would begin making the loans in December. The relatively calm Asian session follows a stabilisation in markets yesterday following their rout on Monday as investors looked forward to the outcome of the Fed’s meeting later today. That said, it was hardly a resounding performance, with the S&P 500 unable to hold on to its intraday gains and ending just worse than unchanged after the -1.70% decline the previous day as investors remained vigilant as to the array of risks that continue to pile up on the horizon. One of these is in US politics and legislators seem no closer to resolving the various issues surrounding a potential government shutdown at the end of the month, along with a potential debt ceiling crisis in October, which is another flashing alert on the dashboard for investors that’s further contributing to weaker sentiment right now. Looking ahead now, today’s main highlight will be the latest Federal Reserve decision along with Chair Powell’s subsequent press conference, with the policy decision out at 19:00 London time. Markets have been on edge for any clues about when the Fed might begin to taper asset purchases, but concern about tapering actually being announced at this meeting has dissipated over recent weeks, particularly after the most recent nonfarm payrolls in August came in at just +235k, and the monthly CPI print also came in beneath consensus expectations for the first time since November. In terms of what to expect, our US economists write in their preview (link here) that they see the statement adopting Chair Powell’s language that a reduction in the pace of asset purchases is appropriate “this year”, so long as the economy remains on track. They see Powell maintaining optionality about the exact timing of that announcement, but they think that the message will effectively be that the bar to pushing the announcement beyond November is relatively high in the absence of any material downside surprises. This meeting also sees the release of the FOMC’s latest economic projections and the dot plot, where they expect there’ll be an upward drift in the dots that raises the number of rate hikes in 2023 to 3, followed by another 3 increases in 2024. Back to yesterday, and as mentioned US equity markets fell for a second straight day after being unable to hold on to earlier gains, with the S&P 500 slightly lower (-0.08%). High-growth industries outperformed with biotech (+0.38%) and semiconductors (+0.18%) leading the NASDAQ (+0.22%) slightly higher, however the Dow Jones (-0.15%) also struggled. Europe saw a much stronger performance though as much of the US decline came after Europe had closed. The STOXX 600 gained +1.00% to erase most of Monday’s losses, with almost every sector in the index ending the day in positive territory. With risk sentiment improving for much of the day yesterday, US Treasuries sold off slightly and by the close of trade yields on 10yr Treasuries were up +1.2bps to 1.3226%, thanks to a +1.8bps increase in real yields. However, sovereign bonds in Europe told a different story as yields on 10yr bunds (-0.3bps), OATs (-0.3bps) and BTPs (-1.9bps) moved lower. Other safe havens including gold (+0.59%) and silver (+1.02%) also benefited, but this wasn’t reflected across commodities more broadly, with Bloomberg’s Commodity Spot Index (-0.30%) losing ground for a 4th consecutive session. Democratic Party leaders plan to vote on the Senate-approved $500bn bipartisan infrastructure bill next Monday, even with no resolution to the $3.5tr budget reconciliation measure that encompasses the remainder of the Biden Administration’s economic agenda. Democrats continue to work on the reconciliation measure but have turned their attention to the debt ceiling and government funding bills.Congress has fewer than two weeks before the current budget expires – on Oct 1 – to fund the government and raise the debt ceiling. Republicans yesterday noted that the Democrats could raise the ceiling on their own through the reconciliation process, with many saying that they would not be offering their support to any funding bill. Democrats continue to push for a bipartisan bill to raise the debt ceiling, pointing to their votes during the Trump administration. If Democrats are forced to tie the debt ceiling and funding bills to budget reconciliation, it could limit how much of the $3.5 trillion bill survives the last minute negotiations between progressives and moderates. More to come over the next 10 days. Staying on the US, there was an important announcement in President Biden’s speech at the UN General Assembly, as he said that he would work with Congress to double US funding to poorer nations to deal with climate change. That comes as UK Prime Minister Johnson (with the UK hosting the COP26 summit in less than 6 weeks’ time) has been lobbying other world leaders to find the $100bn per year that developed economies pledged by 2020 to support developing countries as they reduce their emissions and deal with climate change. In Germany, there are just 4 days to go now until the federal election, and a Forsa poll out yesterday showed a slight narrowing in the race, with the centre-left SPD remaining on 25%, but the CDU/CSU gained a point on last week to 22%, which puts them within the +/- 2.5 point margin of error. That narrowing has been seen in Politico’s Poll of Polls as well, with the race having tightened from a 5-point SPD lead over the CDU/CSU last week to a 3-point one now. Turning to the pandemic, Johnson & Johnson reported that their booster shot given 8 weeks after the first offered 100% protection against severe disease, 94% protection against symptomatic Covid in the US, and 75% against symptomatic Covid globally. Speaking of boosters, Bloomberg reported that the FDA was expected to decide as soon as today on a recommendation for Pfizer’s booster vaccine. That follows an FDA advisory panel rejecting a booster for all adults last Friday, restricting the recommendation to those over-65 and other high-risk categories. Staying with the US and vaccines, President Biden announced that the US was ordering 500mn doses of the Pfizer vaccine to be exported to the rest of the world. On the data front, there were some strong US housing releases for August, with housing starts up by an annualised 1.615m (vs. 1.55m expected), and building permits up by 1.728m (vs. 1.6m expected). Separately, the OECD released their Interim Economic Outlook, which saw them upgrade their inflation expectations for the G20 this year to +3.7% (up +0.2ppts from May) and for 2022 to +3.9% (up +0.5ppts from May). Their global growth forecast saw little change at +5.7% in 2021 (down a tenth) and +4.5% for 2022 (up a tenth). To the day ahead now, and the main highlight will be the aforementioned Federal Reserve decision and Chair Powell’s subsequent press conference. Otherwise on the data side, we’ll get US existing home sales for August, and the European Commission’s advance consumer confidence reading for the Euro Area in September. Tyler Durden Wed, 09/22/2021 - 08:05.....»»

Category: blogSource: zerohedgeSep 22nd, 2021

When Will "Transitory Inflation" Overstay Its Welcome?

When Will "Transitory Inflation" Overstay Its Welcome? Authored by Michael Lebowitz via RealInvestmentAdvice.com, There has been much talk of “transitory inflation”, but the evidence is starting to suggest the term may overstay its welcome. The Fed chose the word “transitory” to describe this instance of rising prices because of its imprecision. Transitory can denote hours, months, or decades. Using transitory versus a specific period provides the Fed freedom to be wrong but be grammatically correct. While the Fed uses ambiguous words, Mr. Market may have more defined expectations. If investors grow impatient with the Fed’s transitory, bond markets may react. In such a case, how will the Fed respond to “enduring” or “lasting” inflation coupled with higher yields? If they are already tapering, will such conditions push them to speed up their pace? Conversely, recent data shows inflation may be stabilizing. Maybe the Fed is correct, and inflation rates will normalize in the coming months. If so, will they hold off on tapering or reduce the rate of tapering? In July, we wrote Just How Transitory is Inflation?  The article is a deep dive analysis of CPI. At the time, we sought a better understanding of what was causing inflation to rise. With two more months of inflationary data, an update is essential.   Understanding inflation beyond the headlines helps us answer the all-important question: Just how transitory is transitory? From there, we can begin to assess potential Fed and market reactions. Headline CPI Summary In the latest CPI report, covering August, the monthly CPI figure rose by 0.3% or 3.6% annualized. The year-over-year rate is +5.30%. In comparison, June’s monthly CPI rose by 0.90% or nearly 11% annualized. Despite the big difference in monthly rates, June’s year-over-year change of +5.40% is only 0.10% higher than August. As shown, the monthly CPI and core (excluding food and energy) are turning lower. While not as pronounced, the annual data is following suit. Two months does not make a trend, but it appears to be fulfilling the transitory definition. Core CPI, at +0.10% last month, is 0.10% below the average for 2017-2019. Headline CPI is only 0.10% above the average. The headline data is supportive of the transitory narrative; however, it does not tell the whole story. The Breadth of CPI Digging deeper into CPI and looking beyond the headline averages may not support the word transitory. The graph below shows the CPI Index based on the median price of the goods and services in the index. Unlike the headline CPI Index, median CPI is still rising and at the highest level since 2008. The distribution graph below compares June to August regarding how the prices of all the underlying goods and services within CPI are changing on an annual basis. We separate the data into 2% price buckets. The blue (August) and orange (June) bars comparing the two months may look somewhat similar, but there are differences worth discussing. In June, 75% of the CPI components were rising at a rate slower than the 5.4% inflation rate. In August, 71% were rising at a slower rate than the 5.3% rate of inflation. The number of goods whose prices rose between 2% and 10% increased from 66 to 77. The number of goods whose prices rose by 2% or less fell from 72 to 55. While subtle in the graph, the number of goods shifting to the right (more inflation) is noteworthy. 52 of the goods and services have price declines from June to August. Six were unchanged, and 95 had price increases. Again, more goods are rising in price than falling. The breadth of the market is not supportive of the transitory theme. A wide swath of prices are broadly rising, albeit not at an alarming pace. Outliers In the original article, four goods had year-over-year price changes of greater than 20%, as shown below. Used Cars 45.2% Gasoline 45.1% Fuel Oil 44.5% Other Motor Fuels 32.1% In the August report, six goods had greater than 20% increases. The four goods from June maintain annual 20% rates of inflation. Added to the list are propane and utility services. The inflationary outliers continue to be energy and auto-based. Both are rising in large part due to the reopening of the economy and supply disruptions. We expect both will moderate in the coming months. As this occurs, they will put less upward pressure on the CPI Index. Employee and school cafeteria food prices are down well below 20%. Over time these should moderate as schools and offices come online. Such will result in inflationary pressures.   Big Contributors In June, 92% of CPI was due to the price changes of the ten largest index weightings, as shown below. Those ten goods played slightly less of a role in August, contributing 82% to the change in the index. Below is a comparison of the same ten contributors for June versus August. The prices of Used Cars and Transportations rose at a lesser rate than June, but every other category was little changed. In the original article, we warn Shelter prices are the most considerable risk to more inflation. Driving our concern is Shelter’s 30%+ contribution to CPI and rapidly rising home and rent prices.  As we show above, higher home and rental prices are barely making their way into CPI.   What gives? In our article BLS’ Housing Inflation Measure is Hypothetical Bull****, we stated: “It appears impossible to calculate the BLS version of OER or rent.” We remain concerned that a double-digit increase in rent and home prices (OER) will push Shelter prices higher in the months ahead. However, history proves reality, and the BLS Shelter measure has a near-zero correlation. Flexible Prices As we wrote in June, CPI tends to be heavily correlated with goods and services that have flexible prices. These are goods like gasoline, whose prices tend to fluctuate both up and down. The Atlanta Fed publishes data on flexible and sticky prices, as shown below. The graph shows sharp increases in both flexible and sticky-price goods are leveling off over the last two months. Given the Atlanta Fed measure of flexible prices has a 96% correlation with CPI, we are hopeful the upsurge is halting. Expectations The graph below shows a glaring divergence between Wall Street inflation expectations and those of Mom and Pop. Five and ten-year market-implied inflation expectations have been stable since January. All the while, the University of Michigan survey of consumers sees steadily rising inflation expectations. While Wall Street buys into the transitory theme, consumers are not. This divergence matters as personal consumption drives about two-thirds of economic activity. The New York Fed, via their latest Consumer Expectations Survey, highlights why confidence is weak. Per their survey, expected inflation is now over 5% and rising. At the same time, expected wage growth is 2.5% and stable/falling. As a result, consumers expect to lose 2.64% (red line) in purchasing power over the next year. Would you be confident taking a 2.64% pay cut?   Summary We are witnessing unprecedented pressures on the supply and demand side of pricing equations. Forecasting, with such uncertainty, is challenging. As such, we maintain a humble approach to inflation forecasting. The latest round of data provides some evidence inflationary pressures are abating. However, the breadth of the data tells us there are still many goods and services still rising in price. This difference may help explain why consumer inflation expectations are higher than the market’s and confidence is falling. Just How Transitory is Transitory? We suspect the market will have its answer in the next few months. Prolonged rising or high inflation beyond December will likely get many to question if inflation is truly transitory. Until then, pay attention to headline inflation, the breadth of the data, and especially any effects from rising Shelter prices on CPI. Tyler Durden Wed, 09/22/2021 - 10:45.....»»

Category: blogSource: zerohedgeSep 22nd, 2021

Op-Ed: Small Businesses, Cooperation Bolster Real Estate Market by Maintaining Affordability, Equity

As more than 31 million small businesses across the country were recognized during National Small Business Week, it’s a good time to look at how small, local operations drive so much of the economy and search for ways to continue to level the playing field for them and for consumers. When it comes to “buying local,” small businesses […] The post Op-Ed: Small Businesses, Cooperation Bolster Real Estate Market by Maintaining Affordability, Equity appeared first on RISMedia. As more than 31 million small businesses across the country were recognized during National Small Business Week, it’s a good time to look at how small, local operations drive so much of the economy and search for ways to continue to level the playing field for them and for consumers. When it comes to “buying local,” small businesses could not be more front and center than when it comes to purchasing a home. In fact, of the 1.5 million REALTORS® across the country, more than 1.3 million are small businesses like me who are focused on our local communities. Of course, the local economic impact of housing is about more than just real estate agents. Preparing a home for the market often involves photographers, cleaners, landscapers, decorators and more, many of whom are small business owners themselves. Taken in total, small business has a significant impact on real estate—in fact, every home sale generates roughly $88,000 in local economic activity, and every two home sales supports one American job. Overall, real estate accounts for nearly 18% of the nation’s GDP. When you consider this real estate economic “food chain,” many think of it as beginning at their housing search—the listings. Real estate listings aren’t simply picked up from websites or public sources, they are created, licensed, vetted, verified, marketed, publicized and shared by independent contractors and small business real estate professionals like me and my team, and then posted on localized data hubs. These hubs allow even the smallest businesses to immediately compete with large ones by creating and participating in this marketplace, where all have access to the same reliable and trusted data. Part of an ongoing fight to maintain equitable accessibility to these listings for all consumers and a level playing field for small business brokerages has to do with so-called “pocket listings.” Such listings allow for the marketing of properties to select consumers before opening them up to all potential buyers. Addressing these types of private listings is critical to ensuring fair competition among small businesses and crucial consumer protection, especially in hot markets where properties sell extremely fast. New guidelines implemented in late 2019 ensure that listings must be submitted to the local marketplace within one business day of marketing a property to the public. This is important in supporting a transparent, pro-consumer market, benefitting both sellers and buyers. Next, let’s consider house hunting and the choice of whom to work with throughout this important process. Another benefit of the real estate marketplace is that it spurs entrepreneurship and innovation and allows consumers to choose their business partners, whether they be small enterprises or large ones. This also allows for choice in service models and the fee payment options, including different commission options or flat fees. It is noteworthy that one of the compensation models, a success or contingent fee, is strongly pro-consumer. If the real estate agent does not sell the property, he or she does not earn a fee. When it comes to the offer prices for properties and closing fees, the real estate marketplace also makes the transaction more affordable. The commitment to cooperation—in which the listing broker pays the buyer broker—allows countless first-time homebuyers and low- and middle-income Americans to be able to afford both a down payment and professional representation. And we know that these savings go a long way. For many prospective buyers, saving for a down payment is difficult enough. The average American household has about $8,800 in the bank. That’s barely 50% of the average down payment for a starter home. Most lenders don’t allow real estate broker commissions to be financed. As a result, for every 1% of broker commission fees that first-time buyers might have to pay, the prices for their homes grow by another $2,000. Buyers, particularly first-time buyers, benefit from the advocacy and representation that licensees provide, particularly given the competition for properties and the complications of the home-buying process. So, having celebrated small businesses in America last week and in the spirit of keeping that momentum going forward, I’m proud to be a REALTOR® who is one of the more than 4% of all U.S. small businesses. We’re out there each and every day participating in a real estate marketplace that advances small businesses and promotes equity for consumers. Ron Phipps Principal Broker at Phipps Realty Inc. Ron Phipps, a REALTOR® for more than 40 years from Warwick, Rhode Island, was the 2011 president of the National Association of REALTORS® (NAR). Phipps is principal broker of Phipps Realty, a family business started by his mother in 1976. In addition to being NAR’s president, Phipps has served as 2003 regional vice president, 2009 first vice president and 2010 president elect. An NAR director since 2000, he has also chaired numerous Presidential Advisory Groups and committees. As part of his service on the 2008 Advisory Group on Professionalism in the industry, Phipps became one of the founding members of REALTOR® University. The post Op-Ed: Small Businesses, Cooperation Bolster Real Estate Market by Maintaining Affordability, Equity appeared first on RISMedia......»»

Category: realestateSource: rismediaSep 21st, 2021

IX vs. AXP: Which Stock Should Value Investors Buy Now?

IX vs. AXP: Which Stock Is the Better Value Option? Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either Orix (IX) or American Express (AXP). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.Right now, Orix is sporting a Zacks Rank of #2 (Buy), while American Express has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that IX likely has seen a stronger improvement to its earnings outlook than AXP has recently. But this is just one factor that value investors are interested in.Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.IX currently has a forward P/E ratio of 9.74, while AXP has a forward P/E of 18.22. We also note that IX has a PEG ratio of 0.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AXP currently has a PEG ratio of 0.91.Another notable valuation metric for IX is its P/B ratio of 0.84. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AXP has a P/B of 4.99.These are just a few of the metrics contributing to IX's Value grade of A and AXP's Value grade of C.IX has seen stronger estimate revision activity and sports more attractive valuation metrics than AXP, so it seems like value investors will conclude that IX is the superior option right now. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Orix Corp Ads (IX): Free Stock Analysis Report American Express Company (AXP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

QRHC or WCN: Which Is the Better Value Stock Right Now?

QRHC vs. WCN: Which Stock Is the Better Value Option? Investors interested in Waste Removal Services stocks are likely familiar with Quest Resource (QRHC) and Waste Connections (WCN). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.Quest Resource has a Zacks Rank of #2 (Buy), while Waste Connections has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that QRHC likely has seen a stronger improvement to its earnings outlook than WCN has recently. But this is just one piece of the puzzle for value investors.Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.QRHC currently has a forward P/E ratio of 35.44, while WCN has a forward P/E of 40.58. We also note that QRHC has a PEG ratio of 2.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WCN currently has a PEG ratio of 3.04.Another notable valuation metric for QRHC is its P/B ratio of 1.49. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, WCN has a P/B of 4.85.These are just a few of the metrics contributing to QRHC's Value grade of B and WCN's Value grade of C.QRHC has seen stronger estimate revision activity and sports more attractive valuation metrics than WCN, so it seems like value investors will conclude that QRHC is the superior option right now. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quest Resource Holding Corporation. (QRHC): Get Free Report Waste Connections, Inc. (WCN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Retail Investors Flooded Into Stocks On Monday Just As Professional Sentiment Turned Most Bearish Since Last October

Retail Investors Flooded Into Stocks On Monday Just As Professional Sentiment Turned Most Bearish Since Last October One week ago, when we last looked at the decline in retail participation in the market, we quoted Vanda Research which said that this trend raised the chances of more serious declines if big investors continue to retreat. “While we have seen a pick-up in ETF buying this week, the magnitude has been a little underwhelming relative to previous selloffs,” Ben Onatibia and Giacomo Pierantoni wrote. “This diminishing appetite to support the equity rally raises the odds of a larger selloff if institutional investors continue to sell.” In retrospect, they were right, even if instead of a full-blown 10% correction we just got a modest half "corr", which saw the S&P suffer its first 5% drawdown since 2020. Picking up on this, this morning Susquehanna looking at the latest data from the Options Clearing Corp. and noted that so-called newbie traders - those buying or selling 10 contracts or less at a time - continued to scale back their equity call-option buying to nearly a 17-month low going into the rout... ... a move which according to Bloomberg looked rather smart with the S&P 500 down 1.7% on Monday and bearish bets on the market’s trajectory on the rise. According to Susquehanna’s Christopher Jacobson, the so-called "dumb money" retail crowd had been scaling back its call-buying appetites along with professional investors, albeit for slightly different reasons. The latter is doing it out of fear that this year’s rally of as much as 21% is losing steam, while the former is chasing a rally in hotter assets like cryptocurrencies. Whatever the reason, the synchronized skepticism may lend optimism to the idea that the selloff’s blow to the market won’t be as severe as it could have been otherwise. However, there was a sharp divergence between what professional investors and retail traders did on Monday when stocks tumbled amid growing fears of Evergrande contagion: on one hand, there was a bearish options deluge with ~5.3 million bearish contracts on the SPDR S&P 500 ETF Trust changing hands yesterday, the most since June last year, data compiled by Bloomberg show. That as the volume of call contacts reached the highest since 2013. This was likely due to Wall Street professionals betting that Monday's slide was just getting started, a sentiment underscored by the latest AAII survey print, which showed that sentiment plumbed lows not seen since 2020 as the gap between bearish and bullish sentiment readings hit the widest level since October 2020... and touched the point that has been historically associated with buying opportunities. Indeed, according to RBC Capital Markets, when the gap was wider than minus-10 in the past, the S&P 500 rallied 86% of the time in the next 12 months, gaining 15% on average. And while to some, like Miller Tabak’s Matt Maley, the soaring negative sentiment wasn't sufficient to sound an all-clear - after all we still haven't had a day when China was back from holiday and we have no idea how Beijing will respond to the Evergrande fireworks - noting that “we’re going to have to see that activity come down and meet the lower level of bullishness before it would signal a change,” retail investors had seen enough, and after treading water for the past few weeks into yesterday's dump, retail daytraders took advantage of the selloff to pile back into some of the largest U.S. exchange-traded funds and bank stocks, providing a buying boost to sliding stock and bucking worries that the group would let stocks tumble. According to the latest Vanda research note, individual investors bought a total of $1.93 billion worth of assets Monday, the fourth-largest net buying since the start of the pandemic. Vanda found that buying from the day-trading crowd was mostly concentrated in popular index ETFs such as the SPY, and the QQQ which saw combined inflows of $337 million, while separate data from Fidelity showed the SPY fund and Apple shares were the most bought assets on its platform Monday. Large investment banks - such as Citigroup and Bank of America - were also among the most bought companies, while bigger institutional investors were likely selling, Vanda said. The data suggest that just as professional investors were positioning for further downside by a surge in put buying, retail investors took the other side of the trade, and rushed into the broader markets, particularly in megacap tech stocks, to increase their holdings in spite of a jump in volatility. There was a surprise in the Vanda data which found individuals sold shares of airline companies like American Airlines Group and Delta Air Lines; Vanda researcher Ben Onatibia wrote. That selling “means institutional investors were on the other side of the trade, building exposure to the reopening trade.” True to form, daytraders also snapped up shares of meme stocks despite the group’s worst day in months. Favorites like AMC Entertainment and GameStop saw continued interest, but newcomers like SmileDirectClub were also bought, Fidelity data show. The three stocks were among the most traded companies on Monday and edged  higher on Tuesday. Nicholas Colas, co-founder of DataTrek Research, said the return of retail traders buying the dip was an “important observation,” given their impact on stock markets in 2021, and a continuation of what we said in May 2020 when we explained "How Retail Investors Took Over The Stock Market." Tyler Durden Tue, 09/21/2021 - 12:38.....»»

Category: blogSource: zerohedgeSep 21st, 2021

The U.S. Is Losing the Global Race to Decide the Future of Money—and It Could Doom the Almighty Dollar

"I don’t think the U.S. is aware there is a race" In cities across China, the country’s central bank has begun rolling out the e-renminbi—an all-digital version of its paper currency that can be accessed and accepted by merchants and consumers without an internet connection, credit or even a bank account. Already having conducted more than $5 billion in e-renminbi transactions, China has opened its digital currency up to foreigners. Next year, when Beijing hosts the Winter Olympic Games, authorities are expecting to let the world test drive its technological achievement. The U.S., by contrast, is having trouble even concluding its multi-year exploration into the possibility of an e-dollar. In fact, an upcoming Federal Reserve paper on a potential U.S. digital currency won’t take a position on whether the central bank of the United States will, or even should, create one. [time-brightcove not-tgx=”true”] Instead, Federal Reserve Chair Jerome Powell said in recent testimony to Congress, this paper will “begin a major public consultation on central bank digital currencies…” (Once planned for July, the paper’s release has since been moved to September.) Once the world leader in digital payments and technological innovation, the U.S. is being outpaced by its top global adversary as well as much of the industrialized and the developing world. The Bahamas recently announced the integration of its digital Sand Dollar into a stock exchange, while Australia, Malaysia, Singapore and South Africa are moving forward with the world’s first cross-border central bank digital currency exchange program led by the Bank for International Settlements (BIS), which is known as the central bank of central banks. Such developments have been somewhat outshined by El Salvador’s recent decision to make bitcoin a legally accepted currency, which few expect to make significant impact in the payment space. But outside of the cryptocurrency space, nations around the globe are making significant strides in the development of the digital future of money — supported by governments and backed by powerful central banks. Leadership in this space will have implications for more than just payments: geopolitical ambitions, economic growth, financial inclusion and the very nature of money could all be dictated by who leads the charge and how. “I don’t think the U.S. is aware there is a race” Digital currencies are the next wave in the “evolution of the nature of money in the digital economy,” Hyun Song Shin, economic adviser and co-leader of the Monetary and Economic Department at the Bank for International Settlements, tells TIME. As more of our world migrates from physical brick-and-mortar to wireless and cloud-based, the way we pay for things is changing as well. A central bank digital currency would operate just like cash, but instead of having to carry it in a physical wallet or put it into a bank account, it would be stored and accessed digitally. Not only could U.S.-backed digital currency facilitate easier, modern banking, it could prove vital in protecting American international influence. Late to the party, the U.S. is “stepping up its research and public engagement” on digital currencies, the Federal Reserve says, including forming working groups on cryptocurrency and other kinds of digital money, and experimenting with technology that would be central to producing a digital dollar. The Fed’s regional Boston branch is overseeing these efforts with the Massachusetts Institute of Technology on what’s known as Project Hamilton. But the path towards a digital U.S. dollar has met many challenges, skeptics and outright opponents. All while China, and other countries, push forward. Lagging behind the world Just how far behind is the U.S. in the development of a central bank-issued digital currency (CBDC)? According to global accounting firm PwC’s inaugural CBDC global index, which tracks various CBDCs’ project status from research to development and production, the U.S. ranks 18th in the world. America’s potential efforts trail countries like Sweden, South Korea and China but also countries like the Bahamas, Ecuador, Eastern Caribbean and Turkey. China, with its government’s hyperfocus on maintaining control and overseeing data, has been working to develop a CBDC for almost a decade. And the U.S. is probably not close to catching up. Analysts like Harvard economics professor Kenneth Rogoff, who study monetary policy and digital currencies, estimate that the U.S. could be at least a decade away from issuing a digital dollar backed by the Fed. In that time, Rogoff argued in an op-ed earlier this year, the modernization of China’s financial markets and reduction or removal of its currency controls “could deal the dollar’s status a painful blow.” Read More: How China’s Digital Currency Could Challenge the Almighty Dollar China has already largely moved away from coin and paper currency; Chinese consumers have racked up more than $41 trillion in mobile transactions, according to a recent research paper from the Brookings Institution, with the lion’s share (92%) going through digital payment processors WeChat Pay and Alipay. “The reason you could say the U.S. is behind in the digital currency race is I don’t think the U.S. is aware there is a race,” Yaya Fanusie, an Adjunct Senior Fellow at the Center for a New American Security, and a former CIA analyst, tells TIME in an interview. “A lot of policymakers are looking at it and concerned…but even with that I just don’t think there’s this sense of urgency because the risk from China is not an immediate threat.” Not only is the U.S. running significantly behind in the development of a CBDC, we are trailing the rest of the world in digital payments broadly. Kenya, for example, has almost fully digitized its economy through its digital currency and payment system MPESA, making transactions free and almost instantaneous. India’s Unified Payments Interface (UPI) allows users to transfer money instantly between bank accounts with no cost. Brazil’s PIX facilitates the transfer of money between people and companies in up to 10 seconds. All of these programs work through and are overseen by the countries’ central banks rather than commercial banks or other private companies. What’s holding the U.S. back? Critics argue CBDCs are simply a solution in search of a problem and potentially harmful. Many see support from the banking sector as vital to the success of a digital U.S. dollar, however commercial banks in the U.S. have taken a largely adversarial stance. “The proposed benefits of CBDCs to international competitiveness and financial inclusion are theoretical, difficult to measure and may be elusive,” the American Bankers Association said in a statement at a recent congressional hearing on digital currencies. “While the negative consequences for monetary policy, financial stability, financial intermediation, the payments system, and the customers and communities that banks serve could be severe.” The Bank Policy Institute, which lobbies on behalf of the country’s largest banks, went so far as to argue that neither the Fed nor the U.S. Treasury even has the constitutional authority to issue a digital currency. Commercial banks dominate the U.S. financial system to such a degree that unraveling them would be ostensibly impossible, experts say, they also would be a powerful adversary. Former Goldman Sachs managing director Nomi Prins notes banks have clearly seen the writing on the wall. “Banks are centralized middlemen with respect to financial transactions,” Prins, author of Collusion: How Central Bankers Rigged The World, tells TIME. “The more popular cryptocurrency or digital currency becomes, the fewer profits the banking system can reap from traditional services and verification methods that allow them to hold, take or use their customers’ money, and the more financial power they stand to lose as a result.” Even disruptive financial technologies like PayPal, Venmo and Zelle work through the banking system, rather than around it, thanks in large part to the banks’ power. Central bankers also generally have concluded that commercial banks are a necessary piece of a potential CBDC ecosystem, thanks to their pre-existing regulatory guardrails and ability to move money. Read More: How Jay Powell’s Coronavirus Response Is Changing the Fed Forever Top policymakers at the Fed, including influential Vice Chair for Supervision Randal Quarles, have joined the banking industry in arguing that a digital dollar “could pose significant and concrete risks” and that the potential benefits “are unclear.” Fed Governor Christopher Waller said in August he was “skeptical that a Federal Reserve CBDC would solve any major problem confronting the U.S. payment system,” in a recent speech he titled “CBDC: A Solution in Search of a Problem?” Further, there’s no central U.S. authority with direct oversight or responsibility for any of this. In addition to the Fed, the Office of the Comptroller of the Currency, the Securities and Exchange Commission, the Federal Trade Commission, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, Office of Thrift Supervision, Financial Stability Oversight Council, Federal Financial Institutions Examination Council and the Office of Financial Research would all have some stake in the development of a digital currency backed by the central bank, to say nothing of state and regional authorities. “The U.S. has an active congressional debate, which is beneficial and very important,” Federal Reserve Governor Lael Brainard tells TIME in an interview. “But the U.S. also has a diffusion of regulatory responsibility with no single payments regulator at the federal level, which is not as helpful. That diffusion of responsibility is part of what creates the lags that our system is working through.” None of this exists in China where the Chinese Communist Party oversees the central bank, commercial banks and their regulators and is unconcerned with privacy. How a downgraded dollar could hamstring U.S. influence An American CBDC could have lasting geopolitical impact and curb a longstanding international effort to reduce reliance on the mighty U.S. dollar. “Why we should care about this is that the U.S. financial system is not intrinsically dominant,” Fanusie says. “Other countries, both allies and adversaries, are sincerely interested in finding ways to decrease their dependence on the dollar.” With the U.S. dollar as the world’s reserve and primary funding currency, the U.S. can restrict access to funding from financial markets, limit countries’ ability to sell their natural resources and hinder or block individuals’ access to the banking sector. “Other countries, both allies and adversaries, are sincerely interested in finding ways to decrease their dependence on the dollar” While dollar dominance has rankled much of the world for decades, there has been no suitable replacement for the U.S., with its massive economy, sophisticated banking system and sprawling international presence. China is in the midst of a long-term push to simultaneously grow its financial markets and internationalize its currency. Both have the end goal of allowing China and its allies to limit the ability of the U.S. to enforce its will through economic actions like sanctions. Fanusie wrote in a January report that being the first major economy to roll out a digital currency is “part of China’s geopolitical ambitions.” However, the renminbi will not become the world’s reserve currency — at least, not any time soon. But what China has done by being in the forefront of CBDC development is put itself in position to take the lead on development and implementation of rules and regulations for digital currencies on a global scale. “While America led the global revolution in payments half a century ago with magnetic striped credit and debit cards, China is leading the new revolution in digital payments,” writes Brookings’ economic studies fellow Aaron Klein. Why should central banks offer digital currencies? Over the past decade, digital currencies, including cryptocurrency and “stablecoins,” have sprung up like weeds. Some purport to be just as safe as dollars, but are backed by questionable assets. In a crisis regulators worry they could fluctuate wildly in value or lose their value altogether. Having central banks, which are responsible for the printing and circulation of coins and paper money, issue digital currencies is in part a reaction to this private sector activity, Shin says, “accelerated by the potential encroachment of private digital currencies, and the need to preserve the role of money as a public good.” “The status quo is not an option” Notably, a U.S. digital currency could provide benefits to everyday people. It could increase financial inclusion and fix flaws in current payments systems, Shin adds, citing findings of a recent BIS study. For example, transferring money between U.S.-based bank accounts, even those held by the same person, can take days. The process can be even longer when crossing international borders. Credit and debit card transactions similarly don’t settle for days and come with significant fees for merchants, who sometimes pass them on to customers. CBDCs could grant universal access to the banking sector and quickly facilitate the distribution of paychecks and government funds, reducing the need for costly bank workarounds like check cashing and payday loans. Championing CBDCs Brainard has been pushing the Fed to move on a digital currency for years, but there was little urgency from others at the Fed or in Congress. Companies developing their own currencies, consumers investing in cryptocurrency and the COVID-19 pandemic making paper notes anathema to many Americans changed that. Before COVID-19, Facebook’s Libra project (now known as Diem) showed lawmakers and central bankers the potential for a private company to step in and fill the void by effectively minting its own currency that could be spent by users around the world. “The status quo is not an option,” Diem co-creator David Marcus said at the International Monetary Fund’s 2019 fall meeting. “Whether it’s Libra or something else, the world is going to change in a profound way.” Brainard, for one, has taken notice. “My own thinking is that stablecoins and related private sector initiatives are moving very rapidly, which makes it incumbent on us to move more rapidly,” she tells TIME. “That is why I have been pushing to advance outreach, cross-border engagement, and policy and technology research for several years now.” So-called stablecoins — unregulated digital currencies created by private companies that purport to represent dollars but are completely unregulated — have become a significant worry for lawmakers and shown the importance of considering tying currency to a central bank. “It’s getting harder and harder for community banks to compete for new customers when big tech companies can afford to spend billions on marketing and technology,” Sen. Sherrod Brown, who chairs the Senate Banking Committee, tells TIME. “But many of these new ‘fintech’ products don’t come with the consumer protections, federal backing or customer service and relationships with the community that small banks and credit unions provide.” During a hearing on digital currencies in June, Sen. Elizabeth Warren, the ranking member of the Subcommittee on Financial Institutions and Consumer Protection, compared stablecoins to worthless “wildcat notes” that were issued by speculators in the 19th century. Her expert at that hearing, Lev Menand, an Academic Fellow and Lecturer in Law at Columbia Law School, went further in his testimony, calling stablecoins “dangerous to both their users and … to the broader financial system.” With private companies pushing deeper into the digital currency space, rival countries seeking to seize leadership and a public that is moving further away from physical currency, the U.S. is facing a world in which it may not control or even lead the world’s payment systems. That would make the future of money look very different from the past......»»

Category: topSource: timeSep 21st, 2021

AutoZone 4th Quarter Same Store Sales Increase 4.3%; 4th Quarter EPS Increases to $35.72; Annual Sales of $14.6 Billion

MEMPHIS, Tenn., Sept. 21, 2021 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE:AZO) today reported net sales of $4.9 billion for its fourth quarter (16 weeks) ended August 28, 2021, an increase of 8.1% from the fourth quarter of fiscal 2020 (16 weeks). Domestic same store sales, or sales for stores open at least one year, increased 4.3% for the quarter. "Our strong sales and earnings this quarter are a testament to our AutoZoners' ongoing commitment to going the extra mile for our customers. Our retail business performed very well this quarter ending with virtually flat same store sales on top of last year's historic growth of over 20%.  And, our commercial business growth continues to be exceptionally strong at 21.2%. The investments we are making continue to strengthen our competitive positioning in all the sectors and markets we compete. We are optimistic about our growth prospects heading into our new fiscal year," said Bill Rhodes, Chairman, President and Chief Executive Officer. For the quarter, gross profit, as a percentage of sales, was 52.3%, a decrease of 82 basis points versus the prior year. The decrease in gross margin was primarily driven by the initiatives to accelerate growth in our Commercial business. Operating expenses, as a percentage of sales, was 31.0% versus 30.7% last year. Our expense growth was primarily driven by higher payroll to support our sales and customer service initiatives, partially offset by a decrease in pandemic related expenses. In addition, we are investing in   technology to underpin our growth initiatives and we are seeing higher wage costs in our stores and distribution centers. Operating profit increased 2.6% to $1.0 billion. Net income for the quarter increased 6.1% over the same period last year to $785.8 million, while diluted earnings per share increased 15.5% to $35.72 from $30.93 in the year-ago quarter. For the fiscal year ended August 28, 2021, sales were $14.6 billion, an increase of 15.8% from the prior year, while domestic same store sales were up 13.6%. Gross profit, as a percentage of sales, was 52.8% versus 53.6%. The decrease in gross margin was primarily attributable to the initiatives to accelerate growth in our Commercial business. Operating expenses, as a percentage of sales, were 32.6% versus 34.5%. The reduction in operating expenses as a percent of sales was driven by strong sales growth and a decrease in pandemic related expenses. For fiscal 2021, net income increased 25.2% to $2.2 billion and diluted earnings per share increased 32.3% to $95.19 from $71.93. Return on invested capital finished at 41.0%. Under its share repurchase program, AutoZone repurchased 592 thousand shares of its common stock for $900 million during the fourth quarter, at an average price of $1,519 per share. For the fiscal year, the Company repurchased 2.6 million shares of its common stock for $3.4 billion, at an average price of $1,303 per share. At year end, the Company had $417.6 million remaining under its current share repurchase authorization. The Company's inventory increased 3.7% over the same period last year, driven by new stores and improved product assortment. Inventory per store was $686 thousand versus $683 thousand last year and $701 thousand last quarter. Net inventory, defined as merchandise inventories less accounts payable, on a per store basis, was negative $203 thousand versus negative $104 thousand last year and negative $167 thousand last quarter."While the COVID-19 pandemic continues to impact our customers' and AutoZoners' lives, our primary focus remains everyone's health and well-being. We will continue to help wherever we can to make our stores the best and safest place to shop for everyone's automotive needs. We remain committed to helping our AutoZoners during these difficult times. As always, we will take nothing for granted while striving for continued sales growth in fiscal 2022. As we continue to prudently invest capital in our business, we remain committed to our long-term, disciplined, approach of increasing operating earnings and cash flow while utilizing our balance sheet effectively," said Rhodes. During the quarter ended August 28, 2021, AutoZone opened 76 new stores in the U.S., 29 stores in Mexico and five stores in Brazil. At our fiscal year end, the Company had 6,051 stores in the U.S., 664 in Mexico and 52 in Brazil for a total store count of 6,767. AutoZone is the leading retailer and a leading distributor of automotive replacement parts and accessories in the Americas. Each AutoZone store carries an extensive product line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. Many stores also have a commercial sales program that provides commercial credit and prompt delivery of parts and other products to local, regional and national repair garages, dealers, service stations and public sector accounts. We also have commercial programs in all stores in Mexico and Brazil. AutoZone also sells the ALLDATA brand diagnostic and repair software through www.alldata.com. Additionally, we sell automotive hard parts, maintenance items, accessories and non-automotive products through www.autozone.com and our commercial customers can make purchases through www.autozonepro.com. We also provide product information on our Duralast branded products through www.duralastparts.com. AutoZone does not derive revenue from automotive repair or installation. AutoZone will host a conference call this morning, Tuesday, September 21, 2021, beginning at 10:00 a.m. (EDT) to discuss its fourth quarter results. This call is being web cast and can be accessed, along with supporting slides, at AutoZone's website at www.autozone.com and clicking on Investor Relations. Investors may also listen to the call by dialing (877) 407-8031. In addition, a telephone replay will be available by dialing (877) 481-4010 through October 19, 2021,11:59 pm (EDT). This release includes certain financial information not derived in accordance with generally accepted accounting principles ("GAAP"). These non-GAAP measures include adjustments to reflect return on invested capital, adjusted debt and adjusted debt to EBITDAR. The Company believes that the presentation of these non-GAAP measures provides information that is useful to investors as it indicates more clearly the Company's comparative year-to-year operating results, but this information should not be considered a substitute for any measures derived in accordance with GAAP. Management targets the Company's capital structure in order to maintain its investment grade credit ratings. The Company believes this is important information for the management of its debt levels and share repurchases. We have included a reconciliation of this additional information to the most comparable GAAP measures in the accompanying reconciliation tables. Certain statements contained in this press release constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically use words such as "believe," "anticipate," "should," "intend," "plan," "will," "expect," "estimate," "project," "positioned," "strategy," "seek," "may," "could," and similar expressions. These are based on assumptions and assessments made by our management in light of experience and perception of historical trends, current conditions, expected future developments and other factors that we believe to be appropriate. These forward-looking statements are subject to a number of risks and uncertainties, including without limitation: product demand; energy prices; weather; competition; credit market conditions; cash flows; access to available and feasible financing; future stock repurchases; the impact of recessionary conditions; consumer debt levels; changes in laws or regulations; risks associated with self-insurance; war and the prospect of war, including terrorist activity; the impact of public health issues, such as the ongoing global coronavirus pandemic; inflation; the ability to hire, train and retain qualified employees; construction delays; the compromising of confidentiality, availability or integrity of information, including cyber-attacks; historic growth rate sustainability; downgrade of our credit ratings; damages to our reputation; challenges in international markets; failure or interruption of our information technology systems; origin and raw material costs of suppliers; disruption in our supply chain; impact of tariffs; anticipated impact of new accounting standards; and business interruptions. Certain of these risks and uncertainties are discussed in more detail in the "Risk Factors" section contained in Item 1A under Part 1 of the Company's Annual Report on Form 10-K for the year ended August 29, 2020, and these Risk Factors should be read carefully. Forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those contemplated by such forward-looking statements, and events described above and in the "Risk Factors" could materially and adversely affect our business. However, it should be understood that it is not possible to identify or predict all such risks and other factors that could affect these forward-looking statements. Forward-looking statements speak only as of the date made. Except as required by applicable law, we undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Contact Information:Financial: Brian Campbell at (901) 495-7005, brian.campbell@autozone.comMedia: David McKinney at (901) 495-7951, david.mckinney@autozone.com     AutoZone's 4th Quarter Highlights - Fiscal 2021   Condensed Consolidated Statements of Operations 4th Quarter, FY2021 (in thousands, except per share data)     GAAP Results     16 Weeks Ended   16 Weeks Ended     August 28, 2021   August 29, 2020(2)           Net sales   $ 4,913,484     $ 4,545,968   Cost of sales     2,345,646       2,132,993   Gross profit     2,567,838       2,412,975   Operating, SG&A expenses     1,523,808       1,394,930   Operating profit (EBIT)     1,044,030       1,018,045   Interest expense, net     58,119       65,638   Income before taxes     985,911       952,407   Income taxes(1)     200,140       211,950   Net income   $ 785,771     $ 740,457   Net income per share:           Basic   $ 36.72     $ 31.67     Diluted   $ 35.72     $ 30.93   Weighted average shares outstanding:           Basic     21,400       23,383     Diluted     22,000       23,942                 (1)The sixteen weeks ended August 28, 2021 and the comparable prior year period include $21.2M and $3.3M in tax benefits from stock option exercises, respectively (2)The sixteen weeks ended August 29, 2020 was negatively impacted by pandemic related expenses, including Emergency Time-Off of approximately $10.7M (pre-tax)     Fiscal Year 2021         (in thousands, except per share data)                 GAAP Results         52 Weeks Ended   52 Weeks Ended         August 28, 2021(2)   August 29, 2020(2)               Net sales   $ 14,629,585     $ 12,631,967   Cost of sales     6,911,800       5,861,214   Gross profit     7,717,785       6,770,753   Operating, SG&A expenses     4,773,258       4,353,074   Operating profit (EBIT)     2,944,527       2,417,679   Interest expense, net     195,337       201,165   Income before taxes     2,749,190       2,216,514   Income taxes(1)     578,876       483,542   Net income   $ 2,170,314     $ 1,732,972   Net income per share:           Basic   $ 97.60     $ 73.62     Diluted   $ 95.19     $ 71.93   Weighted average shares outstanding:           Basic     22,237       23,540     Diluted     22,799       24,093      (1)The 52 weeks ended August 28, 2021 and the comparable prior year period include $56.4M and $20.9M in tax benefits from stock option exercises, respectively (2)The 52 weeks ended August 28, 2021 and the comparable prior year period were negatively impacted by pandemic related expenses, including Emergency Time-Off of approximately $43.0M (pre-tax) and $83.9M (pre-tax), respectively     Selected Balance Sheet Information         (in thousands)                 August 28, 2021   August 29, 2020               Cash and cash equivalents   $ 1,171,335     $ 1,750,815   Merchandise inventories     4,639,813       4,473,282   Current assets     6,415,303       6,811,872   Property and equipment, net     4,856,891       4,509,221   Operating lease right-of-use assets     2,718,712       2,581,677   Total assets     14,516,199       14,423,872   Accounts payable     6,013,924       5,156,324   Current liabilities     7,369,754       6,283,091   Operating lease liabilities, less current portion     2,632,842       2,501,560   Total debt     5,269,820       5,513,371   Stockholders' deficit     (1,797,536 )     (877,977 ) Working capital     (954,451 )     528,781                 AutoZone's 4th Quarter Highlights - Fiscal 2021                                     Condensed Consolidated Statements of Operations                                         Adjusted Debt / EBITDAR                 (in thousands, except adjusted debt to EBITDAR ratio)   Trailing 4 Quarters                   August 28, 2021   August 29, 2020         Net income    $ 2,170,314     $ 1,732,972           Add:  Interest expense     195,337       201,165                     Income tax expense     578,876       483,542           EBIT       2,944,527       2,417,679                             .....»»

Category: earningsSource: benzingaSep 21st, 2021