Monday, October 24, 2022

Wall Street mixed after weak business data; Tesla drags Nasdaq


 U.S. stock indexes were mixed in morning trading on Monday, with the tech-heavy Nasdaq hit by a slide in Tesla and other megacap stocks while signs of a cooling U.S. economy raised hopes that the Federal Reserve will eventually slow its pace of rate hikes.

Tesla Inc (TSLA.O) dropped nearly 7% after it cut starter prices for its Model 3 and Model Y cars by as much as 9% in China, indicating signs of softening demand in the world’s largest auto market. read more

Other megacap shares, including those of Amazon.com Inc (AMZN.O) and Alphabet Inc (GOOGL.O), also dropped ahead of their earnings later this week.

U.S. business activity contracted for a fourth straight month in October, a survey showed, in the latest evidence of an economy softening in the face of high inflation and rising interest rates. read more

Wall Street’s main indexes rallied on Friday after a report said the U.S. central bank will likely debate on a smaller interest rate hike in December.

“We think that the Fed meeting (in November) could be a positive inflection because it will indicate at least some members are re-thinking their ultra-hawkish stance,” said Jay Hatfield, chief executive officer, Infrastructure Capital Management.

U.S. Treasury yields slipped after the report, coming off a 15-year high of 4.34% hit on Friday. read more

The benchmark S&P 500 (.SPX) is up about 5% from its Oct. 12 closing low for the year. Despite the recent rebound, the index is down 21% so far in 2022, on track for its biggest decline since 2008.

The indexes notched their biggest weekly percentage gains in four months on Friday, also supported by better-than-expected earnings reports.

Apart from Google-parent Alphabet and Amazon.com, Microsoft Corp (MSFT.O) and Apple Inc (AAPL.O) too report later this week.

The earnings reports from the four biggest U.S. companies by market capitalization could test a nascent rally on Wall Street as stocks claw their way back from the latest lows.

“I think the bar for success for mega cap companies is relatively low. Therefore, the reaction function to the actual earnings will likely be positive,” said Art Hogan, chief market strategist at B. Riley Wealth in New York.

“The reporting season really gives investors the opportunity to shift their focus on the actual earnings power of corporate America, and I think that’s why we’re popping a little bit.”

Of the 99 companies in the S&P 500 that reported third-quarter earnings through Friday, 74.7% had beat analysts’ expectations, according to Refinitiv IBES estimates. The long-term average is 66.2%.

At 10:28 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 141.93 points, or 0.46%, at 31,224.49, the S&P 500 (.SPX) was down 3.47 points, or 0.09%, at 3,749.28, and the Nasdaq Composite (.IXIC) was down 129.16 points, or 1.19%, at 10,730.56.

U.S.-listed shares of Chinese companies such as Pinduoduo (PDD.O), JD.com and Baidu Inc fell between 18% and 30% as President Xi Jinping’s new leadership team heightened fears that growth will be sacrificed for ideology-driven policies. 

Declining issues outnumbered advancers for a 1.46-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.99-to-1 ratio on the Nasdaq.

The S&P index recorded 20 new 52-week highs and 4 new lows, while the Nasdaq recorded 42 new highs and 204 new lows.

Rafael Nadal tennis comeback finally confirmed with two events locked in


 Rafael Nadal will make his long-awaited return to singles tennis action next week when he competes at the Paris Masters. He will follow that up by participating in the season-ending Masters’ Cup in Turin as he plays his first solo matches on the tour since he was knocked out of the US Open in August. 

Nadal’s only match action since his defeat at Flushing Meadow came alongside Roger Federer at the Laver Cup as he made a special effort to compete in his long-standing friend and rival’s final ever tennis event. There had been questions over whether or not he would compete again in 2022 amid injury niggles and the birth of his first child but he has now put this speculation to rest. 

He will first take part in the Paris Masters which gets underway this weekend as he looks to get himself for the season-ending Masters’ Cup in Turin in November. The two tournaments are ones he is yet to win in his success-laden career, giving him the additional impetus to be involved. 

Nadal enjoyed something of a renaissance during the first half of the year, winning both the Australian and French Opens as he looked to become the world’s most dominant player again. 

JUST IN: Tsitsipas’ dad pleased with rule change as ATP ‘didn’t make sense’

However, he has been somewhat hampered by injuries and personal circumstances for the second part of 2022. He was forced to pull out of Wimbledon ahead of his semi-final with Nick Kyrgios after suffering an abdominal tear before he was knocked out of the Cincinnati Open by world No 152 Borna Coric a month later. 

His US Open campaign was also disappointing, losing to Frances Tiafoe in the round of 16. His only match action since has come in the Laver Cup, a special situation due to Federer’s retirement leaving many fans fearing he has suffered from a burn-out, especially after the birth of his son earlier this month. 

His wife, Xisca Peralla, was known to have suffered difficulties during her pregnancy and spent weeks in hospital. The situation put a huge mental toll on the 22-time Grand Slam winner, particularly after it became public knowledge, with the Spaniard being a deeply private person. 

Nadal is now almost certainly in his final years in the sport meaning fans hope to enjoy every second that he has left on a match court. As a result, the news that he is set to make his return will likely prove to be popular as the tennis legend looks to add to his ever-growing trophy cabinet. 

The Spaniard remains the most successful player in the sport’s history having claimed 22 major titles, one more than Novak Djokovic and two-clear of Federer. 

Oil gains on weaker U.S. business activity, but Chinese demand data weighs


 NEW YORK, Oct 24 (Reuters) – Oil edged up in choppy trade on Monday, as weakening U.S. business activity data eased expectations for more aggressive interest rate hikes, while data showing demand from China remained lacklustre in September limited prices.

Brent crude futures for December settlement were up 55 cents, or 0.6%, at $94.05 a barrel by 10:39 a.m. EDT (1439 GMT), after rising 2% last week. U.S. West Texas Intermediate crude for December delivery gained 55 cents, or 0.7%, to $85.60 a barrel. Both benchmarks had fallen by $1 a barrel earlier in the session.

Although higher than in August, China’s September crude imports of 9.79 million barrels per day were 2% below a year earlier, customs data showed on Monday, as independent refiners curbed throughput amid thin margins and lacklustre demand.

Register now for FREE unlimited access to Reuters.com

“The recent recovery in oil imports faltered in September,” ANZ analysts said in a note, adding that independent refiners failed to utilise increased quotas as ongoing COVID-related lockdowns weighed on demand.

Uncertainty over China’s zero-COVID policy and property crisis are undermining the effectiveness of pro-growth measures, ING analysts said in a note, even though third-quarter gross domestic product growth beat expectations.

Oil prices regained some ground after data that showed U.S. business activity contracted for a fourth straight month in October, with manufacturers and services firms in a monthly survey of purchasing managers both reporting weaker client demand.

POSITIVE SIGNAL

S&P Global said on Monday its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to 47.3 this month from a final reading of 49.5 in September.

That weakening could indicate that the U.S. Federal Reserve’s interest rate increases to fight inflation have been working and may persuade it to slow its rate hike policies, a positive signal for fuel demand, said Phil Flynn, an analyst at Price Futures group.

“The miss on the PMI number is a sign that the economy may be slowing a bit, which turns out to be bullish,” Flynn said.

Brent rose last week despite U.S. President Joe Biden announcing the sale of a remaining 15 million barrels of oil from the U.S. Strategic Petroleum Reserves, part of a record 180 million-barrel release that began in May.

Biden added that his aim would be to replenish stocks when U.S. crude is around $70 a barrel.

But Goldman Sachs said the stocks release was unlikely to have a large impact on prices.

“Such a release is likely to have only a modest influence (<$5/bbl) on oil prices”, the bank said in a note.

U.S. energy firms added oil and natural gas rigs last week for the second week in a row as relatively high oil prices encourage firms to drill more, energy services firm Baker Hughes Co said in a report.

UK gilts jump as Rishi Sunak emerges victorious in Prime Minister’s race


 LONDON: British government bond prices rose sharply on Monday as former finance minister Rishi Sunak cruised to victory in the race to succeed Liz Truss as prime minister, removing at least one source of uncertainty for bond investors.

Sunak’s rivals, former prime minister Boris Johnson and cabinet minister Penny Mordaunt, dropped out of the Conservative Party leadership race on Sunday and Monday.
Gilt jumped briefly on the news that Sunak, a former finance minister, had won the contest. Despite falling back later, they retained the hefty gains racked up earlier in the day when Sunak’s victory looked increasingly likely.
As of 3:05pm (1404) GMT, yields across short- and medium-dated gilts dropped by around 30 basis points on the day, with 20- and 30-year gilt yields down more than 20 bps.
Gilt prices had fallen on Friday, pushing up yields, as investors braced for more uncertainty, with some fearing that a second Johnson premiership could reverse the fiscally conservative stance of new finance minister Jeremy Hunt.
Johnson quit the race late on Sunday, admitting that he could no longer unite the Conservative Party following one of the most turbulent periods in British political history.
“The fall in gilt yields on the news today that Rishi Sunak will become the UK’s next Prime Minister has reduced the chances of a significant fiscal consolidation,” said Ruth Gregory, economist at consultancy Capital Economics.
“Even so, the new PM will still have to work hard to restore stability in the eyes of the financial markets.”
Other major government bond markets also rallied on Monday as downbeat business surveys prompted investors to reel in bets on future interest rate hikes by central banks, although British debt outperformed.
The spread between 10-year German and British government bond yields narrowed sharply to 146 bps, after rising above 165 bps on Friday.

Family Cleaning Business Supports Staff Education and Child Advocacy



Husband and wife Doug and Kristen Shoup, owners of Shoup’s Cleaning in New Philadelphia, Ohio, regularly contribute to their community, from donating time and money to a child advocacy center to offering discounts on their services to first responders. So when they received a US$5,000 grant for their business, they didn’t hesitate to spend it in a way that would benefit their employees and customers.

The Shoups received the grant from home service operations management software provider Jobber. They’ll use part of the grant to send their housekeeping supervisor, Chris Stucin, to ISSA’s Cleaning Management Institute (CMI) Train the Trainer workshop at ISSA Show North America 2022 in Chicago.

“We were super excited when we heard about the grant so we could give Chris this opportunity,” said Doug Shoup. “He will be able to come back and train all our housekeeping team members.”

“Chris recently finished a supervisor bootcamp course with ISSA, and he told us, ‘There’s another class I need to take,’” said Tiffany Poland, general manager of Shoup’s Cleaning. “Ultimately, we want all of our workforce to be certified [through CMI].”

A thriving family business

Founded by Doug’s father, Doyle Shoup, in 1970, Shoup’s Cleaning serves offices and a variety of business sectors, including manufacturing, trucking, and health care. Although Doug helped with the business before he graduated from college, he earned an engineering degree and instead became a technical writer. Kristen, who joined the business while she was in college, stayed on, working as both a cleaner and in the office. When Doyle retired last year, Doug and Kristen decided to take over the business.

Like many companies, Shoup’s Cleaning has struggled in the past few years to maintain staffing yet still strives to provide a safe environment for its employees. To limit the time its workers spend on ladders and lifts, the business will use the remainder of its grant money on a water-fed window-washing pole system.

“The pole extends 55 feet up so workers can wash windows five stories up while keeping their feet on the ground,” said Doug. “Increasing awareness of your safety culture goes hand-in-hand with education and customer satisfaction,” said Tiffany.

Supporting the community

Taking care of valued customers is a priority for Shoup’s Cleaning. The business offers discounts to senior citizens, churches, and first-responder facilities. “First responders have been extremely helpful to our family, so we thank them by giving a discount,” Doug said.

Another family priority is donating to Noah’s Hope, a child advocacy center named after their 2-year-old son who died while in the care of a babysitter. A jury found Noah’s babysitter guilty of beating him.

Noah’s Hope provides services that help reduce further trauma and promote recovery to residents of Tuscarawas County and neighboring communities. For instance, it offers a child-friendly method of interviewing young victims, recording their testimony so they don’t have to appear in court before their abusers.

The Shoups have been active with the center since it was established in 2011. “We’re on the board, we help with fundraisers and awareness activities, and we clean the facility,” Doug said. “One of our goals is to pay off the center’s mortgage.

Gorillaz Are Getting Into The Vodka Business – Forbes



Damon Albarn’s beloved virtual band, Gorillaz, have announced they will be collaborating with Smirnoff on a limited-edition vodka bottle. And that’s just the start.

The Smirnoff x Gorillaz bottle will feature all four band members as well as their own cocktail recipes, including the Murdoc’s Vodka Murdini (a pickled twist on the classic vodka martini), Hobbs’ Smirnoff Brooklyn (heavy on the chilli), Noodle’s Sayonara Martini (tweaked with yuzu sake), and 2-D’s Vodka Eyeball (which is garnished with eyeball gummies, of course).

Commenting on the collaboration, Murdoc said “Nothing to see here folks—just the OG vodka brand teaming up with the OG virtual band. Cheers Smirnoff—pleasure doing business with you! I’m not usually one for labels, but this is a beauty!”

According to both parties, this partnership will not end here, but lead into “a truly original experience” later in the year.

“It’s been a thoroughly collaborative process,“ says Mark Jarman, head of Smirnoff GB.“When the idea came up to work with the Gorillaz, we knew this had to be the first in Smirnoff’s True Originals series, celebrating disruptive creativity and the endless possibilities that arise from pushing boundaries.

“It was a no-brainer to join forces with Gorillaz, the world’s most successful virtual band and a globally renowned act. They are total innovators in their field, real risk-takers and a true testament to the power of originality.

This exclusive bottling will be available on Amazon AMZN from October 27th.

Exclusive Smirnoff x Gorillaz cocktail recipe for the Vodka Murdini

Until smooth Smirnoff Vodka came along, nobody had tried using vodka in a martini. In the 1950s, Smirnoff led a cocktail disruption across America by replacing gin in this classic serve and now millions of martini fans mix with Smirnoff Vodka instead of gin.

Murdoc Niccals is affectionately regarded by the Gorillaz fandom community as Pickle (owing to his green skin) and we wouldn’t put it past him to consider himself the ideal candidate for the next Bond, so it was a no brainer to take the shaken-not-stirred classic and whack a pickle in it… Hold the olive.

Ingredients:

● 50ml Smirnoff No.21 Vodka ● 15ml Belsazar Dry Vermouth ● 10ml Olive brine ● Dash DASH of saline optional ● Pickles (to garnish)

Preparation:

1. Fill the cocktail shaker with ice.

2. Measure Smirnoff Vodka, Vermouth and brine in a jigger and pour ingredients into a cocktail shaker.

3. Shake until cold.

4. Double strain into a cold martini glass.

5. Garnish with pickles.

Why South Carolina could be NASA’s next frontier


Collaborative partners statewide are shooting for the moon to try and create a permanent NASA facility in South Carolina.

While the space agency currently has no permanent footprint in South Carolina, a consortium was created in 2020 specifically to expand the relationship with NASA and bring a NASA Center of Excellence to the state.

A Center of Excellence is an ancillary NASA operation focused on research to help find solutions to the world’s problems. CORE SC — which stands for The Center of Resilience Excellence South Carolina — was founded by Charleston County Government, the South Carolina Aquarium, the College of Charleston, SC Space Grant and SC NASA EPSCoR to make the center a reality.

Board members include chairman Jonathan Zucker, president of The InterTech Group, and Dr. Cassandra Runyon, director of the SC NASA Space Grant Consortium and NASA Experimental Program to Stimulate Competitive Research (EpSCR). CORE SC employees hosted NASA for a three-day statewide tour Sept. 12-14 showcasing the state’s many resources that could support a new space economy.

The tangible goal is to establish a NASA Center for Excellence at an executive airport — the Johns Island Executive Airport in Charleston County along the Stono River, Aiken Regional Airport or Spartanburg Downtown Memorial Airport. Ideally, there would be NASA labs at each of those locations.

“We want to have lab space (at an airport) to do things with drones, high-altitude balloons, communication equipment and infrastructure for electric vehicle tools, and to create a satellite program for the state,” said Kevin Limehouse, Innovation Officer for Public Services with Charleston County who also heads CORE SC. “The ask from NASA is for us to do South Carolina’s first CubeSat program, so the lab space and infrastructure at these locations would be for that and all of the tech that comes with it. There’s a real possibility it could be located at one of our airports.”

Yet locations aren’t the only incentives for NASA consideration.

During the multi-day tour, CORE SC highlighted innovative companies operating in the state that could support a new space economy. Parameters for establishing a Center of Excellence include focusing on research and innovation in a specific niche. CORE SC identified five niche areas: Water, Energy, Connectivity, Agriculture and Natural hazards — the acronym “WE CAN.”

NASA officials tour the Clemson University International Center for Automotive Research. (Photo/Provided)“All five (areas) are relevant to South Carolina, and we would work on solutions to these issues here that we can share with the nation and the world,” Limehouse said. “All five are also all tied to NASA’s mission directorate, and we hope to work on solutions together.”

In that spirit, stops on NASA’s three-day tour included agriculture innovators BrightMa Farms in Cordesville, which uses hemp to create industry-grade manufacturing products, and Heron Farms in Charleston, which grows edible sea beans that desalinate water during the grow process — a product that could be grown in space and nourish astronauts.

Other stops included FabLab in Charleston, which 3-D prints building materials sturdy enough to house a lab, Trident Tech’s Aerospace program facilities and The Clemson University International Center for Automotive Research (CU-ICAR).

“The crux message is, ‘Here’s why South Carolina can be leaders in the new space economy with all that we have going on,’” Limehouse said. “There are opportunities for these businesses to connect (with NASA) and get federal contracts.”

NASA’s criteria for creating an official Center of Excellence is that an organization like CORE SC would set up the center first and, once NASA observes its success, the space agency would take over.

“We have to establish the center on our own, start working with NASA on projects with some formalized agreements, and, if everything goes well, it would get absorbed and become a part of NASA,” Limehouse said. “We talked to a Center of Excellence in Texas, and that was their process as well.”

NASA and Beyond

A Center of Excellence first landed on the state’s radar five years ago, when the space agency asked to hold a business expo related to the building of its space launch system rocket, said Limehouse.

“We started working with the Marshall Space Flight Center to host a huge business expo and also STEM expo with astronaut visits to our schools, and we just really hit it off,” Limehouse said. NASA came back in force with more than Marshall when the state hosted a NASA regional Conference in 2021.

Through that relationship, stakeholders discovered that NASA was interested in opening additional Centers of Excellence. That’s when CORE SC was created along with its unique Center of Excellence model.

The work CORE SC is doing to highlight advancements in its five identified niches is already spurring innovation opportunities beyond NASA — most notably, the Rolls Royce manufacturing facility in Aiken, which is pioneering microgrids for renewable solar energy to power its headquarters and operations.

Limehouse told NASA employees during the recent tour that CORE SC’s interest in that technology led to discussions with Rolls Royce leadership about future projects and partnerships in the new space economy.

“Rolls Royce in Germany asked for a call and said, ‘Would CORE SC be interested in partnering on EVTOLs?’, which are electric vertical take-off and landing vehicles — flying cars — and of course, we said yes,” Limehouse said. “We asked ourselves, ‘Where can we do that?’ The ask of NASA by CORE SC is to develop NASA’s first South Carolina satellite program in the state and when Rolls Royce asked about EVTOLs, we thought we could tie those two together at the Johns Island airport.”

Barzan Aeronautical, which develops aerial intelligence, surveillance and reconnaissance systems, is currently building a drone facility at the Johns Island airport; all those endeavors could work together and collaborate on innovation, Limehouse said.

“Satellite programs, 3-D printing, industrial agriculture products that can be grown on the moon or Mars — all of this happens if we do it together,” Limehouse said. “My idea is everything together: a Rolls Royce microgrid to power everything with renewables, a 3-D printed structure that houses a lab for communications equipment and lab space and a 3-D printed buildout infrastructure for EVTOLs and drones.”

CORE SC is awarding $400,000 in state-funded subgrants for projects that move the five niche industries forward in South Carolina.
“It could be focused on solutions in electric vehicle charging for a small rural community, flood map work or anything related to technology transfers that transform inventions and scientific outcomes,” Limehouse said. “The end goal is that we want solutions in the hands of our citizens to improve their quality of life.”

CORE SC holds weekly project team meetings, biweekly meetings with NASA and monthly meetings with stakeholders and partners to share ideas.

Showcasing STEM

CORE SC previously hosted NASA employees at week-long STEM fair to show how students are learning skills for future space economy careers, and a previous CORE SC project included securing grant funding for students to learn at the Kennedy Space Center in Florida.

“We are talking with NASA about holding another business and STEM expo in 2023 with smaller events leading up to it, like small and minority businesses having an opportunity to connect about their role in NASA (projects),” Limehouse said.

That includes bringing higher education institutions and Historically Black Colleges and Universities to the table.

“The CORE SC model is to show NASA all the partners that we work with on a regular basis,” Limehouse said.

Any business involved in these industries is encouraged to reach out to CORE SC about their work.

“We want to show NASA and other federal partners why bringing in all sectors to work together creates a more sustainable model,” Limehouse said.
While Limehouse notes that a NASA Center of Excellence is several years down the line, he said it’s important for South Carolina to get a leg up and create innovation in this burgeoning industry.

“This is going to be a slow burn,” Limehouse said. “Federal agreements take a long time, but all of our efforts go towards creating solutions for our citizens, economic development for our state and a chance to do more with NASA. Hopefully one day, they will have a permanent presence here.”