Year: 2024

Elon Musk, known for his bold opinions and futuristic ventures, recently made a statement that got a lot of people talking. He compared the government to the DMV, saying “The government is the DMV at scale. How much DMV do you want? That’s the question people should ask themselves.”

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Musk was actually replying to a sarcastic tweet that said:

“We need to force Mark Zuckerberg, Jeff Bezos, Elon Musk and Warren Buffett to sell off their companies and give the proceeds to Kamala Harris, so she can better allocate that capital to the people who need it most. Government is the best capital allocator.”

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When Musk asks, “How much DMV do you want?” he’s unsarcastically asking people to think about how much government they really want in their lives. Just like the DMV is more often than not slow and frustrating, the government as a whole can be the same way, but on a bigger scale. Do people want more government, even if it means dealing with more of the same problems we see at the DMV?

For a lot of people, the DMV (Department of Motor Vehicles) is the perfect example of how government can be inefficient. It’s the place where you go to renew your license, register your car, or take a driving test, and it’s known for long lines, confusing steps, and not-so-friendly service. Because of this, the DMV has become a go-to joke and a symbol of everything that’s frustrating about dealing with government offices.

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When Musk draws this parallel, he’s tapping into a widespread sentiment. Most of us have heard stories of frustrating experiences at the DMV, and these stories have become almost universal. The DMV experience is an easy metaphor for how some people view the government as a whole.

Others, however, argue that even though the government isn’t perfect, it plays a key role in ensuring that basic needs and services are met for everyone. Things like public education, health care, infrastructure, social security, emergency response systems, clean air and water, etc.

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Interestingly, not everyone has a terrible experience with the DMV. For example, one person shared under Musk’s response: “I gotta say, I had a really good experience renewing my license in person. I booked an appointment online, showed up at that time, and was out of there in 10 minutes. Well done Houston DMV. I realize that’s not par for the course though.”

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This article Elon Musk Says ‘The Government Is The DMV At Scale. How Much DMV Do You Want? That’s The Question People Should Ask Themselves’ originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

(Bloomberg) — Stocks retreated as traders prepared for data releases that will offer insight about the health of the US economy and the Federal Reserve’s interest-rate path.

Most Read from Bloomberg

Europe’s Stoxx 600 slipped 0.2% as mining equities declined on the back of softer commodity prices. US contracts pulled back ahead of Wall Street’s reopening following the Labor Day holiday, while a gauge of Asian stocks was little changed.

In what is historically a poor month for stocks, traders are bracing for fresh bouts of volatility. In the runup to the start of the Fed’s rate-cutting cycle, investors are wary of risks stemming from US election campaigning and rising geopolitical tensions.

The publication of US manufacturing data later Tuesday will mark the start of a busy week of economic reports, culminating with nonfarm payrolls statistics on Friday. A similar series of releases in August induced fears that the US economy was heading for a hard landing, whiplashing markets.

“We do expect higher volatility over coming weeks,” said Mohit Kumar, chief economist for Europe at Jefferies International. Central banks “are data dependent and markets’ expectations of their response function is likely to whipsaw around data releases.”

Markets are currently pricing a start to US policy easing this month, with a roughly one-in-five chance of a 50 basis-point cut, according to data compiled by Bloomberg.

In currencies, the yen rallied after Bank of Japan Governor Kazuo Ueda reiterated that the central bank will continue to raise interest rates if the economy and prices perform as expected.

The dollar extended modest gains of the previous two trading days. Treasury yields were little changed.

Oil fluctuated as traders weighed concerns over China’s dour economic outlook against supply disruptions in Libya.

Corporate Highlights:

• Cathay Pacific Airways Ltd.’s inspection of its Airbus SE A350 fleet is focused on deformed or degraded fuel lines in the engines of the widebody aircraft.

• Illumina Inc.’s abandoned $7 billion bid for cancer-detection provider Grail Inc. should never have been probed by the European Union, according to a top court ruling.

• Grifols has postponed its capital markets day until further notice in light of Brookfield’s potential takeover offer, according to a letter to investors seen by Bloomberg.

Key events this week:

• US construction spending, ISM Manufacturing index, Tuesday

• Australia GDP, Wednesday

• China Caixin services PMI, Wednesday

• Euro-zone HCOB services PMI, PPI, Wednesday

• Fed’s Beige Book, Wednesday

• Eurozone retail sales, Thursday

• Germany factory orders, Thursday

• US initial jobless claims, ADP employment, ISM services index, Thursday

• Euro-zone GDP, Friday

• US nonfarm payrolls, Friday

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Some of the main moves in markets:

Stocks

• The Stoxx Europe 600 fell 0.2% as of 10:03 a.m. London time

• S&P 500 futures fell 0.3%

• Nasdaq 100 futures fell 0.4%

• Futures on the Dow Jones Industrial Average fell 0.3%

• The MSCI Asia Pacific Index was little changed

• The MSCI Emerging Markets Index fell 0.4%

Currencies

• The Bloomberg Dollar Spot Index was little changed

• The euro fell 0.2% to $1.1049

• The Japanese yen rose 0.7% to 145.83 per dollar

• The offshore yuan was little changed at 7.1222 per dollar

• The British pound fell 0.2% to $1.3123

Cryptocurrencies

• Bitcoin fell 0.3% to $58,826.55

• Ether fell 2.1% to $2,501.91

Bonds

• The yield on 10-year Treasuries was little changed at 3.91%

• Germany’s 10-year yield declined one basis point to 2.33%

• Britain’s 10-year yield declined one basis point to 4.04%

Commodities

• Brent crude fell 0.4% to $77.19 a barrel

• Spot gold rose 0.2% to $2,504.68 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Richard Henderson.

(An earlier version corrected the date that Chinese factory data came out.)

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©2024 Bloomberg L.P.

Investor sentiment has beaten down more than its fair share of stocks over the last few years, even as the bull market has driven share prices of top companies across multiple industries skyward. Ultimately, when you’re looking at stocks to invest in for the long-term, share price only tells you what the market values the company at in that given moment.

Share prices may be up or down for valid reasons, but it’s important to look at the factors behind those movements and the underlying business behind the stock. This allows you to determine whether the business looks like a quality addition to your portfolio for the long term and whether it’s trading at a price you’re willing to pay.

On that note, if you are looking for two top stocks trading on sale right now, here are a couple of names trading quite near 52-week lows that you may want to consider for your portfolio.

1. CVS Health

CVS Health (NYSE: CVS) has been pummeled by the market lately, with shares not only hitting 52-week lows but also down approximately 30% from the start of 2024. There are numerous factors behind this decline. CVS has been dealing with decelerating growth recently, particularly because of higher-than-usual patient utilization rates for the company’s Medicare business, which inevitably cuts into profits.

CVS has recently had to lower its financial guidance multiple times, another element that has led some investors to sell off shares. That said, the company continues to be profitable, is experiencing revenue growth, and has a strong cash position. In the second quarter of 2024, earnings were down year over year, but CVS still reported operating income of $3.1 billion and net income of $1.8 billion.

Revenue for the three-month period came to $91.2 billion, an increase of 2.3% from one year ago. The company also generated operating cash flow just shy of $8 billion in the first half of 2024.

Potential shareholders might be most interested in CVS for its dividend, which the company has an established track record of paying and raising in a wide range of environments. The stock has seen its payout rise about 33% in the trailing-five-year period alone, while the lackluster performance of shares lately has driven that yield to a juicy 4.6%. CVS currently boasts a payout ratio of approximately 45% of earnings, with a cash position of about $16 billion on hand at last count.

Healthcare costs have been on the upswing in recent years, and phenomena like a surge in Medicare Advantage enrollment can undoubtedly be traced back to delays in these trends due to the pandemic. While these are hurdles that CVS will need to overcome, it has the business to do so in the long run. The company remains one of the largest pharmacy benefit managers in the country, with a diversified business that includes its namesake pharmacy chain and a growing cohort of virtual care services.

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CVS also owns Aetna, the third-largest health insurance company in the U.S. by market share. And while financial growth has slowed, CVS is still profitable and cash flow positive. The company’s market leadership, its underlying business, and its dividend may all be reasons to consider a position in the healthcare stock.

2. Pinterest

Pinterest (NYSE: PINS) was a pandemic darling, but the growth stock has fallen considerably since that time. While shares are trading up by about 17% from one year ago, the stock is down about 12% from the start of 2024 and only about $8 above its 52-week low price.

Just because a stock is trading up or down doesn’t mean you should buy in, but Pinterest’s platform still has a lot of potential to deliver for both consumers and advertisers. The company makes money by selling ad space to companies across a range of industries, from beauty brands to home furnishing companies to clothing retailers.

Pinterest provides its users with free inspiration across a virtually endless array of topics through images and videos. Those images and videos are often ads that lead users to a specific product or service they can choose to buy. While consumer spending has been in flux since the pandemic surge, and advertising spending has contracted in the economic environment, the broader outlook for these markets remains favorable.

Looking at the second quarter of 2024, revenue rose by a healthy 21% year over year to $854 million. Pinterest now has 522 million monthly active users, up 12% from the same period last year. The company also generated global average revenue per user (ARPU) of $1.64 in the three-month period, up 8% on a year-over-year basis.

Pinterest’s ARPU rose 16% in the U.S./Canada and 14% in Europe compared to one year ago. From a profitability perspective, the platform generated net income of $9 million in the second quarter of 2024, compared to a $35 million net loss one year ago. The company ended the period with about $1.4 billion in cash on hand.

Pinterest has had to deal with headwinds in its target markets from both consumers and advertisers, as well as the fact that growth has inevitably slowed from its pandemic peak. However, user growth is on the upswing again, revenue is growing steadily, and the company is working to be consistently profitable. Now could be an opportunity to buy this stock at a discounted valuation for its long-term potential.

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2 Magnificent Stocks to Buy That Are Near 52-Week Lows was originally published by The Motley Fool

If you have a lot of spare change around your home, at some point, you may want to convert those coins to paper cash.

You’ve probably seen coin conversion to cash machines at the supermarket, and while that’s convenient, as you likely are aware, you’ll pay a commission for that convenience. That may be worth it to you, to exchange your coins for cash, quickly. But if you want all of your coins converted to cash, for free, you do have options.

Where can I change my coins for cash for free?

If you’re hoping to exchange coins for cash without paying a fee, you have a few options:

• Banks: Many banks will let you exchange your coins for cash, though you may need to be an existing customer to avoid a fee. Some banks may also require you to do some work beforehand — namely, rolling up your coins in wrappers so they don’t have their tellers spending an hour sifting through a bucket of spare change. However, some community banks have their own self-service coin-sorting machines that allow you to skip this step (most big banks such as Chase and Bank of America have done away with these machines).

• Credit unions: Like banks, your credit union may agree to exchange your coins for cash for free if you’re a member. Non-members may have to pay a fee for this service, if offered.

• Certain retailers: There’s no telling what sort of response you will get, but if you bring in a bunch of rolled coins, a retailer might be happy to give you cash for your coins. Still, a bank or credit union is your best bet.

Other places to exchange coins (for a fee)

If you can’t find a local bank or credit union willing to exchange your coins for cash, there are a few other places you can do it, often for a fee.

Coinstar

Founded in 1991, Coinstar machines are commonly found in grocery stores, big-box retailers, and other convenient locations. These kiosks will count your coins and exchange them for paper bills — for a service fee. Coinstar fees vary but can be up to 12.5%, plus a $0.59 transaction fee.

Some Coinstar machines offer e-gift cards instead of cash; if you choose this option, you can avoid the fee.

Publix

If you shop at Publix supermarkets, you’ll notice that the store has its own Publix-branded coin-counting machines. These machines count your coins and provide a receipt that you can take to the customer service counter and redeem for cash.

Publix coin-counting fees vary by store, but generally, they charge around 10%.

Store-branded coin-counting machines

You may find some other supermarkets or stores that have their own coin-counting machines. They may charge a fee, though some stores offer the service for free if you redeem the amount for store credit.

What to do with your cash

So once you’ve converted your stash of coins into cash, what should you do with it? Here are some ideas.

Open a high-yield account

After converting your coins into paper bills, you could put that money in a high-yield savings account, money market account, or certificate of deposit (CD). Interest rates on these accounts vary, but some of the top options offer as high as 5% APY.

Say you deposited $250 into a high-yield savings account that earns 5% APY and compounds daily. Over a year’s time, you’d have approximately $263 — your principal deposit of $250, plus $13 in interest.

Sure, $13 doesn’t sound like much, but you’d be off to a good start with your savings. If you started putting a couple hundred dollars into your account every month, the compound interest would start to quickly add up.

Read more: 20 savings accounts that pay 5% APY or higher

Save for a specific purpose

Your $100 or $200 or whatever you’ve saved in coins could go toward something you’re specifically saving for. This type of savings is often referred to as a sinking fund – where you consistently put money aside to go toward a future expense, whether it’s holiday gifts, a vacation, a wedding, or perhaps a down payment on a house.

You might not be in a hurry to send extra cash to creditors, but those coins you traded in could make a big dent in your debt.

For example, let’s say you have a $5,000 personal loan at 10% APR and 36 months to pay it off. Your monthly payment would be about $162.

But now let’s say that you have $200 in coin cash and you use it to make an extra payment on your debt. You’d shave off one month from your repayment timeline and save an additional $68 in interest.

Make a donation

If you collect some cash around your house — money that you didn’t miss and now you’ve got — it might be a fairly painless but very satisfying decision to take your coin cash and donate your money to a charity.

You may also be able to deduct the contribution on your taxes. To do so, you’ll need to itemize your taxes using Schedule A. The donation must also be made to a qualifying 501(c)(3) organization.

Invest it

You can also use your coins to invest in the stock market, which can result in much greater gains than you’ll get with a savings account. If you’re investing for retirement, consider making an extra contribution to your individual retirement account or 401(k) and help fund your future.

Not sure how to get started with investing? A financial adviser can help you devise a strategy and choose the right investments to reach your goals.

Finding a fiduciary financial adviser doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 financial advisers that serve your area in 5 minutes.