Advertisement

profile/2681Capture.PNG.webp
Investopedia
Levi Strauss Stock Plunges As Company Considers Selling Dockers Brand
~1.0 mins read

Shares of Levi Strauss (LEVI) plunged in early trading Thursday after the jeans maker announced it may sell its Dockers brand as it delivered mixed third-quarter results.

While Levi's adjusted earnings per share (EPS) of 33 cents beat consensus estimates of analysts polled by Visible Alpha, its revenue of $1.52 billion came up short. Sales of Dockers were down 15% year-over-year, prompting executives to "evaluate strategic alternatives" for the unit.

Net income in the third quarter of $21 million was well below the over $100 million analysts had forecast.

For the full fiscal year, Levi's said it expects total revenue to grow 1% compared to fiscal 2023, a more modest projection than the 1% to 3% growth it forecast when it reported its second quarter results.

Levi's also said it has "initiated a formal review of strategic alternatives for the Dockers brand," which could lead to the famous khaki brand being sold, though the review wasn't given a specific timeline.

The company's shares were down 8% in recent trading. The stock has gained 18% since the start of the year.

Do you have a news tip for Investopedia reporters? Please email us at [email protected]

Read more on Investopedia

profile/2681Capture.PNG.webp
Investopedia
Key CVS Health Stock Price Levels To Watch
~2.3 mins read

CVS Health (CVS) shares have been in the spotlight following reports that the healthcare services giant is considering separating its retail pharmacy and insurance units as it looks to improve profitability and appease investors.

The company also said this week it will lay off about 2,900 employees, representing about 1% of its workforce, as part of a previously announced cost-cutting plan. These latest developments come after CVS executives reportedly met hedge fund investor Glenview Capital Management on Monday to discuss a shakeup of the the firm’s operations.

Shares in the healthcare conglomerate rose 1.1% Wednesday to close at $62.24 but have fallen 21% since the start of the year, weighed down by higher expenses, lower reimbursements and shifting consumer habits, all of which have contributed to the company lowering its outlook in recent quarters.

Below, we take a closer closer look at CVS Health’s weekly chart and turn to technical analysis to identify important longer-term price levels to watch out for.

CVS Health shares have traded within a descending channel since late 2021, with the price tagging the pattern’s upper and lower trendlines several times to establish easily identifiable support and resistance areas on the chart.

More recently, buyers stepped up to defend the channel’s lower trendline after a steep sell-off throughout April, though the stock has chopped in a sideways drift since.

The relative strength index (RSI) gives a reading of around 50, indicating neutral conditions, while declining volumes since the stock bottomed in late April points to waning interest from larger market participants, such as institutional investors and pension funds.

Let’s take a look at several longer-term price levels that investors will likely be watching.

The first level to watch sits around $56, a region where the stock may find buying interest near the lower portion of the recent rangebound period. This area also aligns with similar trading levels on the chart between March 2019 and November 2020.

Selling below this level could see the shares decline to the $52 area, where they would likely encounter support around the April and May 2019 troughs.

An initial move higher could bring the $68 level into play, an area on the chart where the stock may face a wall of resistance from the descending channel’s upper trendline and multiple peaks and troughs on the chart stretching from October 2017 to December last year.

A breakout above this level could accelerate a move up to $76, an area where investors may look to lock in profits near a multi-year trendline connecting a range of similar price levels from early 2017 through to March this year.

Do you have a news tip for Investopedia reporters? Please email us at [email protected]

Read more on Investopedia

Advertisement

profile/2681Capture.PNG.webp
Investopedia
Nvidia CEO Jensen Huang Says Demand For Its Chips Is ‘Insane'
~1.1 mins read

Demand for Nvidia's (NVDA) AI chips is "insane," CEO Jensen Huang said in a televised interview Wednesday afternoon.

Huang spoke during an interview on in connection with news of an expanded partnership with IT consulting firm Accenture (ACN) to help companies use artificial intelligence (AI) technology, the companies announced Wednesday.

Shares of Nvidia, which closed 1.6% higher Wednesday, have more than doubled in value since the start of the year as companies have raced to buy the company's tech and build out AI infrastructure. Accenture shares moved 1.2% higher Wednesday and have gained about 1.5% in 2024 so far. 

As part of the deal, Accenture will form a new business group with consultants trained to help clients build custom AI solutions and capabilities with Nvidia’s tech, as well as Meta’s (META) Llama collection of open-source AI models.

“This partnership allows us to span a large part of the world’s AI demand," Huang said, adding “this is the beginning of a new wave called enterprise AI.”

Wedbush analyst Dan Ives likened Nvidia’s moves to build an ecosystem of partners to those of tech stalwarts Microsoft (MSFT) and Oracle (ORCL), suggesting it could help cement Nvidia’s position in the marketplace. 

Do you have a news tip for Investopedia reporters? Please email us at [email protected]

Read more on Investopedia

profile/2681Capture.PNG.webp
Investopedia
Most Americans Want Congress To Fix Social Security And Medicare Shortfalls ASAP
~1.7 mins read

Most Americans want the President and Congress to prioritize addressing the shortfall in Social Security and Medicare.

In a recent Transamerica Institute survey, nearly 62% of respondents said they want the shortfall in Social Security to be addressed, while about 51% prioritized finding a solution to Medicare funding gaps. These two issues ranked as Americans' two major concerns in ensuring retirement security.

The survey findings echo recent sentiment surrounding retirement savings and reliance on government-funded programs. While many younger generations know they must save for retirement on their own, older generations still tend to depend on Social Security or Medicare.

Funding gaps in Social Security and Medicare may be a growing concern for retirees and those nearing retirement, especially as employer-funded pension plans are increasingly being replaced by employee-funded options like  401(k)s.

Those retired or nearing retirement are most concerned about a Social Security funding shortfall. The survey found that 82% of the Silent Generation (those born between 1928 and 1945) and 81% of baby boomers (those born between 1946 and 1964) feel the Social Security funding shortfall is a priority compared to 50% of millennials (those born between 1981 and 1996). And 71% of retirees prioritized the Medicare shortfall versus 46% of those currently working.

Additionally, retirement is one of the biggest worries for Americans ahead of the U.S. presidential elections.

Social Security’s Old-Age and Survivors Insurance (OASI) Trust Fund—which provides benefits for retirees—is at risk of running short of funds in 2033. Unless Congress provides a fix before then, retirees will only receive 79% of their benefits starting in 2034.

Medicare’s Hospital Insurance Trust Fund (Medicare Part A) faces a similar risk. Beginning 2037, the hospital insurance trust fund will run dry and retirees will only receive 89% of their benefits.

If benefits for either program were cut, it would affect millions. In 2024, more than 50 million people received Social Security retirement benefits and more than 65 million participated in Medicare.

Do you have a news tip for Investopedia reporters? Please email us at [email protected]

Read more on Investopedia

profile/5377instablog.png.webp
Instablog9ja
Nigerians Jubilate As FG Removes VAT On Diesel, Cooking Gas, And Others
~1.2 mins read

The Federal Government has introduced tax exemptions on key energy products and infrastructure as well as fiscal incentives for the upstream and downstream oil and gas sector.

Mohammed Manga, Director, Information and Public Relations in Federal Ministry of Finance in a statement on Wednesday said the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun unveiled two major fiscal incentives aimed at revitalizing Nigeria’s oil and gas sector.

According to him, “The VAT Modification Order 2024 introduces exemptions on a range of key energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.

These measures are designed to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.

The notice of tax incentives for deep offshore oil and gas production provides new tax reliefs for deep offshore projects.

This initiative is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.

These reforms are part of a broader series of investment-driven policy initiatives championed by His Excellency, President Bola Ahmed Tinubu, in line with Policy Directives 40-42.

They reflect the administration’s strong commitment to fostering sustainable growth in the energy sector and enhancing Nigeria’s global competitiveness in oil and gas production.

With these bold initiatives, Nigeria is firmly on track to reclaim its position as a leader in the global oil and gas market. These fiscal incentives demonstrate the administration’s unwavering commitment to fostering sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians.”

#Instablog9jaNews #Information #Awareness #StayUpdated

Continue reading on Instablog

Advertisement

profile/2681Capture.PNG.webp
Investopedia
Value-Meal Buyers Are Getting Fewer Fries With That
~1.4 mins read

Fast-food value meals have been credited with helping get inflation-weary diners back into their favorite chains. 

But there’s a dark side, it appears—at least, if you’re a company that supplies those chains with potato products: Fewer fries are arriving with those orders.  

Lamb Weston Holdings (LW), which on Wednesday reported its latest financial results along with plans for a broad restructuring and a scaled-back outlook, said that its customers' restaurant traffic has been—and is expected to remain—under pressure. That sentiment has been echoed by other food suppliers lately, including Hunt’s ketchup owner ConAgra Brands (CAG) and spice giant McCormick (MKC). 

Lamb Weston Chief Executive Officer (CEO) Tom Werner said Wednesday that there was “early evidence” of improving restaurant traffic in the summer months, with customers responding to promotions and, perhaps, getting used to higher prices. Demand for fries isn’t dropping, Werner said, with the rate at which people add them to orders “steady” in the company’s key markets. 

But some promotional value-meal offers, Werner said, include french-fry portions that are smaller than consumers might have ordered before.

“We're obviously pleased with the growth in restaurant traffic, but it's important to note that many of these promotional meal deals have consumers trading down from a medium fry to a small fry,” Werner said on the earnings call, a transcript of which was made available by AlphaSense. ”So, while we benefit from improving traffic trends, consumers trading down in serving size acts as a partial headwinds for our volumes.”

Do you have a news tip for Investopedia reporters? Please email us at [email protected]

Read more on Investopedia

Loading...