Super Micro Stock Tumbles Anew As Data Center Firm Cuts Sales Outlook
Super Micro Computer (SMCI) stock fell late Tuesday after the data center hardware firm cut its sales targets for the September and December quarters. The company currently is embroiled in controversy surrounding its financial reporting.
After the market close, the San Jose, Calif.-based company offered a “business update” on its fiscal first quarter, which ended Sept. 30, as well as the current quarter.
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For fiscal Q1, Super Micro now expects adjusted earnings of 75 to 76 cents a share on sales of $5.9 billion to $6 billion. It previously guided to adjusted earnings of 67 to 83 cents a share on sales of $6 billion to $7 billion.
Analysts polled by FactSet had expected the company to earn 73 cents a share on sales of $6.44 billion in the September quarter. In the year-earlier period, it earned 34 cents a share on sales of $2.12 billion.
For the current quarter ending Dec. 31, Super Micro forecast adjusted earnings of 56 to 65 cents a share on sales of $5.5 billion to $6.1 billion. Wall Street was modeling earnings of 81 cents a share on sales of $6.84 billion in the fiscal second quarter.
Super Micro Stock Falls On Update
In after-hours trading on the stock market today, Super Micro stock fell more than 9% to 25.17. During the regular session Wednesday, it rose 6.4% to 27.70.
Super Micro stock is down 55% in the past three months and 3% year to date as it deals with a morass of accounting issues. It faces possible delisting from the Nasdaq exchange if it doesn’t meet its financial compliance requirements.
Last week, Super Micro disclosed that Ernst & Young had resigned as its accounting firm after citing concerns about the company’s financial reporting. That news was on top of a delay in filing its annual 10-K report and a possible investigation by the U.S. Department of Justice.
Super Micro has been benefiting from cloud computing companies building data centers to support artificial intelligence applications. It competes with Dell Technologies (DELL), Hewlett Packard Enterprise (HPE), Lenovo and others.
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Emerson Electric Posts Better-Than-Expected Results, Joins Palantir Technologies, DXP Enterprises, Cummins, Apollo Global Management And Other Big Stocks Moving Higher On Tuesday
U.S. stocks were higher, with the Dow Jones index gaining around 300 points on Tuesday.
Shares of Emerson Electric Co EMR rose sharply during Monday’s session after the company reported better-than-expected fourth-quarter financial results and issued FY25 adjusted EPS guidance above estimates. Also, the company announced it increased return of capital to shareholders with plans to repurchase approximately $2B in FY25.
Net sales growth of 13% year over year to $4.62 billion, beating the consensus of $4.57 billion. Underlying sales were up 4%, and underlying orders increased by 2% in the quarter. Adjusted EPS improved 15% to $1.48, beating the consensus of $1.47.
Emerson Electric shares jumped 6.6% to $117.01 on Tuesday.
Here are some other big stocks recording gains in today’s session.
- Vimeo, Inc. VMEO shares jumped 42.7% to $6.86 after the company reported better-than-expected third-quarter financial results and issued fourth-quarter sales guidance above estimates.
- Gogo Inc GOGO gained 29.3% to $8.47 after the company reported better-than-expected third-quarter financial results.
- Astera Labs Inc ALAB rose 29.1% to $90.14 after the company reported better-than-expected third-quarter EPS and sales.
- Aris Water Solutions Inc ARIS gained 25.8% to $20.84 following strong quarterly results.
- Palantir Technologies Inc PLTR gained 22.4% to $50.70 after the company reported better-than-expected third-quarter financial results and issued guidance above consensus estimates.
- UFP Technologies Inc UFPT rose 20.7% to $335.00 after the company reported better-than-expected third-quarter financial results.
- Lindblad Expeditions Holdings Inc LIND gained 20.6% to $11.28 after the company reported better-than-expected third-quarter financial results.
- DXP Enterprises Inc DXPE gained 18.7% to $60.45 following strong quarterly results.
- Century Aluminum Co CENX gained 17.7% to $20.66 following upbeat quarterly earnings.
- Payoneer Global Inc PAYO climbed 16% to $9.88 after the company reported better-than-expected quarterly EPS and sales and raised its FY24 revenue guidance.
- Cushman & Wakefield PLC CWK gained 13.2% to $14.88 after the company reported better-than-expected quarterly adjusted EPS results.
- Ingredion Inc INGR rose 12.6% to $150.97 following upbeat earnings.
- Primoris Services Corp PRIM gained 10.5% to $71.11 following strong quarterly earnings.
- Powell Industries, Inc. POWL rose 9.1% to $293.34.
- Cummins Inc CMI gained 8.7% to $353.91 after the company reported better-than-expected third-quarter financial results.
- Nomura Holdings Inc NMR rose 7.3% to $5.64 following second-quarter results.
- Apollo Global Management APO gained 6.8% to $149.00 after the company reported better-than-expected quarterly financial results.
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Insider Move: Michael C Smiley Invests $79K In Twin Disc Stock
Michael C Smiley, Director at Twin Disc TWIN, reported an insider buy on November 4, according to a new SEC filing.
What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Smiley increased their investment in Twin Disc by purchasing 6,747 shares through open-market transactions, signaling confidence in the company’s potential. The total transaction value is $79,999.
At Tuesday morning, Twin Disc shares are up by 0.43%, trading at $11.73.
Delving into Twin Disc’s Background
Twin Disc Inc is a United States-based firm engaged in the manufacture and sale of marine and heavy-duty off-highway power transmission equipment. The company operates its business through two reportable segments: Manufacturing and Distribution. Its product portfolio includes marine transmissions, surface drives, propellers, and boat management systems as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and control systems.
Financial Insights: Twin Disc
Revenue Growth: Twin Disc displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 0.59%. This indicates a notable increase in the company’s top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Key Profitability Indicators:
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Gross Margin: The company maintains a high gross margin of 29.72%, indicating strong cost management and profitability compared to its peers.
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Earnings per Share (EPS): Twin Disc’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.54.
Debt Management: Twin Disc’s debt-to-equity ratio is below the industry average. With a ratio of 0.26, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Insights into Valuation Metrics:
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Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 14.81, Twin Disc’s stock is perceived as being overvalued in the market.
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Price to Sales (P/S) Ratio: The P/S ratio of 0.55 is lower than the industry average, implying a discounted valuation for Twin Disc’s stock in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Twin Disc’s EV/EBITDA ratio at 6.91 suggests potential undervaluation, falling below industry averages.
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
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The Importance of Insider Transactions
Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
Exploring the legal landscape, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider’s new purchase, there’s a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Deciphering Transaction Codes in Insider Filings
Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Twin Disc’s Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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Brunswick Chief Executive Officer Trades Company's Stock
Revealing a significant insider sell on November 4, David M Foulkes, Chief Executive Officer at Brunswick BC, as per the latest SEC filing.
What Happened: Foulkes’s recent move involves selling 23,829 shares of Brunswick. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value is $1,911,562.
During Tuesday’s morning session, Brunswick shares up by 0.99%, currently priced at $81.69.
Discovering Brunswick: A Closer Look
Brunswick is a leading manufacturer in the marine recreation industry. The firm has more than 60 brands delivering products across propulsion (outboard, sterndrive, and inboard engines, propulsion-related controls, rigging, and propellers), parts, accessories, and technology, and boats (including well-known brands like Boston Whaler and Sea Ray). It also owns numerous Freedom Boat Club (shared ownership) locations as well as Boateka, which facilitates transactions in the used boat market. Brunswick’s focus surrounds building the innovative marine and recreational experiences, technologies, and connections supported by quality and innovation.
Understanding the Numbers: Brunswick’s Finances
Revenue Growth: Brunswick’s revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -20.1%. This indicates a decrease in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Insights into Profitability:
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Gross Margin: With a low gross margin of 26.15%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
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Earnings per Share (EPS): Brunswick’s EPS is below the industry average. The company faced challenges with a current EPS of 0.67. This suggests a potential decline in earnings.
Debt Management: Brunswick’s debt-to-equity ratio stands notably higher than the industry average, reaching 1.34. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Understanding Financial Valuation:
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Price to Earnings (P/E) Ratio: The P/E ratio of 18.79 is lower than the industry average, implying a discounted valuation for Brunswick’s stock.
-
Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.01, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
-
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio of 9.93 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
Market Capitalization Analysis: Above industry benchmarks, the company’s market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
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Unmasking the Significance of Insider Transactions
It’s important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.
Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
Deciphering Transaction Codes in Insider Filings
Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Brunswick’s Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Insider Decision: Michael J Laroche Offloads $459K Worth Of RPM Intl Stock
Revealing a significant insider sell on November 4, Michael J Laroche, VP at RPM Intl RPM, as per the latest SEC filing.
What Happened: After conducting a thorough analysis, Laroche sold 3,615 shares of RPM Intl. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total transaction value is $459,611.
As of Tuesday morning, RPM Intl shares are up by 0.37%, currently priced at $128.01.
About RPM Intl
RPM International Inc manufactures and sells a variety of paints, coatings, and adhesives. The firm organizes itself into four segments based on product type. The construction products group sells coatings, roofing, insulation, and other products to distributors, contractors, and end consumers globally. The performance coatings group produces coatings that are used in construction and industrial applications like floorings and corrosion control. The consumer group sells paint, finishes, and similar products to individual consumers through hardware and craft stores. The specialty products group sells a line of products ranging from niche applications of the other groups to marine finishes, to edible food colorings. The majority of revenue comes from North America.
Financial Milestones: RPM Intl’s Journey
Negative Revenue Trend: Examining RPM Intl’s financials over 3 months reveals challenges. As of 31 August, 2024, the company experienced a decline of approximately -2.14% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.
Navigating Financial Profits:
-
Gross Margin: Achieving a high gross margin of 42.5%, the company performs well in terms of cost management and profitability within its sector.
-
Earnings per Share (EPS): RPM Intl’s EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.78.
Debt Management: With a high debt-to-equity ratio of 0.89, RPM Intl faces challenges in effectively managing its debt levels, indicating potential financial strain.
Market Valuation:
-
Price to Earnings (P/E) Ratio: The P/E ratio of 26.74 is lower than the industry average, implying a discounted valuation for RPM Intl’s stock.
-
Price to Sales (P/S) Ratio: The P/S ratio of 2.24 is lower than the industry average, implying a discounted valuation for RPM Intl’s stock in relation to sales performance.
-
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 16.96, RPM Intl demonstrates exemplary market valuation, surpassing industry averages.
Market Capitalization Analysis: The company’s market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Delving Into the Significance of Insider Transactions
Insider transactions shouldn’t be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
A Closer Look at Important Transaction Codes
Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of RPM Intl’s Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
AGCO Shares Drop As Q3 Results Miss Expectations, 2024 Outlook Cut Amid Softened Global Demand
AGCO Corp AGCO shares slipped after the company reported worse-than-expected third-quarter results and lowered its 2024 outlook.
AGCO reported a third-quarter net sales decline of 24.8% year over year to $2.599 billion, missing the consensus of $2.90 billion.
Regional Sales: South America -47% YoY, Europe/Middle East -18.2% YoY, North America -21.8% YoY, and Asia/Pacific/Africa -11.7% YoY.
Adjusted operating income slid 67% year over year to $143.8 million, and the margin contracted by 710 bps to 5.5%. The gross profit declined 35.4% year-over-year to $603.1 million, and the margin declined 383 bps to 23.2%.
The company reported regional operating margin performance with EME at 6.4%, North America at 7.2%, South America at 11.8%, and APA at 3.8%.
Adjusted EPS of $0.68, down from $3.97 a year ago, missing the consensus of $1.08.
AGCO’s cash used in operating activities for the nine months ended September was $108 million, down from cash provided of $202.7 million a year ago. As of September 30, cash and equivalents stood at $642.6 million.
“We continue to execute against our Farmer-First strategy focused on enhancing profitability through the cycle with our three high-margin initiatives, recent portfolio moves and aggressive actions to control expenses including our ongoing restructuring program,” said Eric Hansotia, AGCO’s Chairman, President and Chief Executive Officer.
“The reaffirmation of our full-year adjusted operating margin outlook of 9% underscores this transformation, especially considering the significant market downturn in the third quarter. Low commodity prices and high input costs led to increased conservatism from our dealers and farmers resulting in ongoing production cuts to help reduce AGCO and dealer inventories.”
The company’s regular quarterly dividend of $0.29 per common share will be paid on December 16 to all stockholders of record as of the close of business on November 15.
2024 Outlook, lowered: The agricultural machinery maker now expects net sales of $12 billion (prior $12.5 billion) versus the $12.445 billion consensus, reflecting lower sales volumes.
AGCO now expects adjusted EPS of ~$7.50 (prior $8.00) versus the consensus of $7.93. The company reaffirms its adjusted operating margin expectation of ~9%.
Price Action: AGCO shares are trading lower by 10.4% at $87.66 at the last check Tuesday.
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Atlanta Housing Seeks Development Partner to Transform Historic Stadium Hotel
Revitalization of 450 Hank Aaron Drive will deliver affordable housing and economic vitality to Summerhill
ATLANTA, Nov. 4, 2024 /PRNewswire/ — Atlanta Housing (AH) has issued a Request for Proposals (RFP) for the redevelopment of the landmark 450 Hank Aaron Drive property, inviting developers to reimagine this historic property as a high-quality, mixed-income community with affordable housing, community-centric retail, and open spaces. Built in 1973 and commonly known as Stadium Hotel, the former Ramada Plaza has been a fixture of Atlanta’s skyline, serving generations of visitors attending Braves games and other downtown events. Now vacant, the site is primed for transformation into an inclusive community that honors the neighborhood’s legacy while being a key part of its renewed momentum.
“Together with our developer partners, we will breathe new life into an empty commercial property, transforming it into a place to call home and one of opportunity,” said Terri Lee, President and CEO of Atlanta Housing. “This project offers developers a chance to create a vibrant, welcoming residence for over 250 seniors and families—a place where people of all backgrounds and generations can connect and thrive.”
The redevelopment will strengthen the ongoing economic and community growth in Summerhill by attracting new residents, businesses, and investment to the area. Located near key Atlanta attractions, such as the Georgia State University athletic campus, Center Parc Stadium, and the bustling Georgia Avenue corridor, the project will play a critical role in Atlanta Housing’s mission to expand access to affordable, quality homes in the city’s center, bolstering a growing, blended community.
Project Highlights:
- Adaptive Reuse and New Construction: The project is an adaptive reuse of the 15-story tower, creating approximately 250 age-restricted, affordable rental units for residents 55 and older. Ground-floor commercial spaces will also be designed to support local businesses and enhance neighborhood connectivity.
- High-Quality, Community-Oriented Design: Emphasizing sustainable building practices, the development will incorporate resident-friendly amenities and access to transit, creating a welcoming space that reflects Summerhill’s historic charm and energetic atmosphere. The selected development partner will work closely with local stakeholders and neighborhood associations to ensure the project aligns with community priorities.
- Public-Private Partnership Model: Leveraging a robust public-private partnership approach, Atlanta Housing will collaborate with the selected developer to maximize resources and prioritize sustainable construction. This partnership is designed to balance affordability with high-quality standards, delivering a transformative development that enhances both the local economy and community life.
Anticipated Timeline:
- Execution of Master Development Agreement (MDA): Within 75 days of developer selection
- Initial Financial Closing: 12 months post-MDA execution
- Project Completion: Full occupancy and site work expected within five years
Atlanta Housing is actively seeking developers who are passionate about making a meaningful impact through mixed-use and mixed-income housing. Interested developers can view the full RFP and submission requirements HERE.
ABOUT ATLANTA HOUSING
President and Chief Executive Officer Terri M. Lee leads The Housing Authority of the City of Atlanta, Georgia (AH), the largest housing authority in Georgia and one of the largest in the nation. AH carries the prestigious Moving to Work (MTW) designation and serves as an industry leader in providing and facilitating affordable housing resources for nearly 27,000 low-income households comprised of approximately 45,000 people through its AH-owned residential communities, tenant-based and project-based vouchers, supportive housing, as well as down payment assistance, where innovation leads the approach to making the dream of homeownership attainable for more Atlantans. Atlanta Housing programs are funded by the U.S. Department of Housing and Urban Development.
Visit AH at www.atlantahousing.org or follow us on social media @housingatlanta.
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SOURCE Atlanta Housing
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Trump Tariff Proposed May Cost Americans $78B In Spending: Study
In a recent study, the National Retail Federation (NRF) warns that Donald Trump’s proposed tariffs could significantly impact American consumers, potentially reducing annual spending by $78 billion.
What Happened: The NRF study highlights the potential consequences of Trump’s tariff proposal on consumer goods, particularly those imported from China. The report, released on Monday, suggests that the tariffs could lead to increased prices on essential items such as apparel, toys, and appliances, affecting consumer spending habits, Reuters reported.
Jonathan Gold, NRF’s vice president of supply chain and customs policy, emphasized the reliance of retailers on imports to offer a diverse range of affordable products. The proposed tariffs, which include a 10% universal tariff on all imports and a possible 60% to 100% tariff on Chinese imports, could disproportionately impact low-income families as costs are passed on to consumers.
See Also: Scaramucci Says Trump ‘Should Be Taken Into Custody’ Over Alleged Threat Against Liz Cheney
The NRF also projects a modest growth in holiday sales, expecting an increase of up to 3.5% to $989 billion, marking the slowest growth in six years.
Why It Matters: The proposed tariffs have sparked significant controversy, with a growing backlash from voters who oppose the plan. An NBC News poll revealed that 44% of voters are less likely to support a candidate advocating for universal tariffs, highlighting the divisive nature of the issue amid economic challenges like inflation and fragile supply chains.
Furthermore, global concerns have been raised about the potential negative impact of Trump’s tariffs. Singapore’s state-owned investment firm, Temasek, warned that a Trump re-election could slow global growth, affecting U.S. companies and financial markets. The firm expressed concerns about increased uncertainty due to tariffs, which could lead to a stronger dollar and higher rates.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
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