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Good Stocks To Invest In? 5 Cyclical Stocks To Watch This Week

Could these cyclical stocks rise thanks to last week’s Labor Department jobs report?
The post Good Stocks To Invest In? 5 Cyclical Stocks To Watch This Week appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.c…

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Are These Top Cyclical Stocks Worth Watching This Week?

Despite the recent mix of news regarding the economic recovery, the broader stock market continues to reach newer heights. Thanks to the latest release from the U.S. Labor Department, cyclical stocks could be taking center stage today. Diving right into it, the U.S. economy reportedly added 943,000 jobs throughout July. Notably, this smashes consensus estimates of 845,000 from economists across the board. At the same time, the unemployment rate is now down to 5.4%, under the projected 5.7%. Ideally, most would see this as a positive update for the reopening trade now.

Sure, you could argue that the coronavirus and its variants would pose a threat to the industry’s current momentum. However, businesses and organizations are more prepared than they were last year when the pandemic first hit. Take United Airlines (NASDAQ: UAL) for example. The company is now requiring all of its 67,000 U.S. employees to be vaccinated by early October. In theory, this would help the company optimize its operations amidst the current pandemic. Meanwhile, infrastructure companies on the other end of the cyclical trade would also be relevant now. The likes of Nucor (NYSE: NUE) are gaining attention as President Biden’s latest infrastructure bill progresses forward. With all this in mind, here are five top cyclical stocks to consider in the stock market today.

Best Cyclical Stocks To Watch In August 2021

Walmart Inc.

Walmart is a multinational retail corporation that operates a chain of hypermarkets, department stores, and grocery stores. Also, the company claims that each week, approximately 220 million customers and members visit its approximately 10,500 stores and clubs under 48 banners across 24 countries and its e-commerce websites. It also boasts over 2.2 million associates worldwide.

In June, the company announced the Walmart MoneyCard issued by Green Dot Bank (NYSE: GDOT) is now offered as a demand deposit account. Basically, this would help Walmart customers save money and live better. “We are excited to work with Green Dot to provide a more convenient and innovative way for customers to manage their finances with the new Walmart MoneyCard, which offers cashback, overdraft protection, direct deposit, interest on savings, and more,” said Julia Unger, vice president of Financial Services at Walmart. “We are committed to offering our customers valuable services to help them manage their financial needs.” Given all of this, will you be buying WMT stock?

top cyclical stocks (WMT stock)
Source: TD Ameritrade TOS

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Wells Fargo & Co.

Wells Fargo is a cyclical company that provides financial services. It has approximately $1.9 trillion in assets and proudly serves one in three U.S. households and more than 10% of small businesses in the U.S. It is also the leading middle banking provider in the U.S. In brief, the company provides a diversified set of banking, investment, and mortgage products and services.

In late July, the company announced a quarterly common stock dividend of $0.20 per share payable on September 1, 2021. This third-quarter dividend represents an increase of $0.10 per share from the prior quarter. On Thursday, the company announced that it received the 2021 Apex Award in honor of its online Small Business Resource Center, to help small business owners amid the pandemic. The resource center has assisted nearly 900,000 small businesses since its launch by offering them tools, resources, and financial assistance to help weather one of the largest economic downturns in history. All things considered, will you buy WFC stock?

best cyclical stocks (WFC stock)
Source: TD Ameritrade TOS

[Read More] 4 Artificial Intelligence Stocks To Watch Right Now

Nvidia Corporation

Nvidia is a technology company that has essentially redefined modern computer graphics and high-performance computing with the invention of the graphics processing unit (GPU). To begin, its products are used in the gaming and professional markets. It also designs system-on-a-chip units (SoCs) for mobile computing and the automotive market. Furthermore, its professional line of GPUs is used in workstations for applications in the architecture and engineering fields among others.

On Wednesday, analysts at Rosenblatt Securities had raised their price target for the company to $250 in a research note issued to investors. The firm also gave the company a buy rating, citing Nvidia’s earnings power on its AI and next-generation networking technologies. The company also recently announced that it will host its conference call for its second-quarter financials on August 18, 2021, after the market closes. Given the excitement surrounding the company, is NVDA stock worth adding to your portfolio?

cyclical stocks to buy now (NVDA stock)
Source: TD Ameritrade TOS

[Read More] Best Stocks To Buy Right Now? 5 Aerospace Stocks To Know

Bank of America Corporation

Following that, we will be taking a look at the Bank of America Corporation (BAC). Most would be familiar with this titan in the financial space now. This would be thanks to its global investment banking and financial services portfolio. In the U.S., BAC currently operates via 4,300 retail financial centers, 17,000 ATMs, and serves 41 million active users digitally. Furthermore, the company is also present in 34 other countries across the globe.

After more than doubling since its pandemic era low, could the company’s shares have more room to run moving forward? Well, for one thing, BAC’s shift in focus towards the digital space seems to be benefiting the company. Yesterday, BAC reported that its Bank of America app facilitates 85% of deposit transactions on its network now. In the second quarter, this accounts for nearly 48 million checks that were deposited by BAC customers. All in all, the company continues to cater to the shifting needs of its clientele during the pandemic. Would this make BAC stock a top buy for you now?

best cyclical stocks (BAC stock)
Source: TD Ameritrade TOS

[Read More] Best Stocks To Buy Right Now? 5 Aerospace Stocks To Know

Square Inc.

Last but not least, we have a leading name in the fintech industry now, Square. Similar to our previous entry, the company would stand to benefit from cyclical tailwinds in the consumer space. Accordingly, the company’s comprehensive digital payment offerings would be a factor to consider when investing in SQ stock.

If anything, SQ stock could be on investors’ radars now thanks to the company’s latest announcement. Namely, Square is planning to acquire Australian fintech company Afterpay. The company is known for its buy now, pay later (BNPL) services. Simply put, Afterpay’s BNPL offering allows consumers to break up payments into four interest-free installments. This would be a strategic play by Square now given the popularity of BNPL systems among consumers this year. All in all, some would argue that this gives SQ stock more space to grow. Would you say the same?

cyclical stocks to watch (SQ stock)
Source: TD Ameritrade TOS

The post Good Stocks To Invest In? 5 Cyclical Stocks To Watch This Week appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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Government

Supreme Court Rules Public Officials May Block Their Constituents On Social Media

Supreme Court Rules Public Officials May Block Their Constituents On Social Media

Authored by Matthew Vadum via The Epoch Times (emphasis…

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Supreme Court Rules Public Officials May Block Their Constituents On Social Media

Authored by Matthew Vadum via The Epoch Times (emphasis ours),

Public officials may block people on social media in certain situations, the Supreme Court ruled unanimously on March 15.

People leave the U.S. Supreme Court in Washington on Feb. 21, 2024. (Kevin Dietsch/Getty Images)

At the same time, the court held that public officials who post about topics pertaining to their work on their personal social media accounts are acting on behalf of the government. But such officials can be found liable for violating the First Amendment only when they have been properly authorized by the government to communicate on its behalf.

The case is important because nowadays public officials routinely reach out to voters through social media on the same pages where they discuss personal matters unrelated to government business.

When a government official posts about job-related topics on social media, it can be difficult to tell whether the speech is official or private,” Justice Amy Coney Barrett wrote for the nation’s highest court.

The case is separate from but brings to mind a lawsuit that several individuals previously filed against former President Donald Trump after he blocked them from accessing his social media account on Twitter, which was later renamed X. The Supreme Court dismissed that case, Biden v. Knight First Amendment Institute, in April 2021 as moot because President Trump had already left office.

At the time of the ruling, the then-Twitter had banned President Trump. When Elon Musk took over the company he reversed that policy.

The new decision in Lindke v. Freed was written by Justice Amy Coney Barrett.

Respondent James Freed, the city manager of Port Huron, Michigan, used a public Facebook account to communicate with his constituents. Petitioner Kevin Lindke, a resident of Port Huron, criticized the municipality’s response to the COVID-19 pandemic, including accusations of hypocrisy by local officials.

Mr. Freed blocked Mr. Lindke and others and removed their comments, according to Mr. Lindke’s petition.

The U.S. Court of Appeals for the 6th Circuit ruled for Mr. Freed, finding that he was acting only in a personal capacity and that his activities did not constitute governmental action.

Mr. Freed’s attorney, Victoria Ferres, said during oral arguments before the Supreme Court on Oct. 31, 2023, that her client didn’t give up his rights when using social media.

This country’s 21 million government employees should have the right to talk publicly about their jobs on personal social media accounts like their private-sector counterparts.”

The position advocated by the other side would unfairly punish government officials, and “will result in uncertainty and self-censorship for this country’s government employees despite this Court repeatedly finding that government employees do not lose their rights merely by virtue of public employment,” she said.

In Lindke v. Freed, the Supreme Court found that a public official who prevents a person from comments on the official’s social media pages engages in governmental action under Section 1983 only if the official had “actual authority” to speak on the government’s behalf on a specific matter and if the official claimed to exercise that authority when speaking in the relevant social media posts.

Section 1983 refers to Title 42, U.S. Code, Section 1983, which allows people to sue government actors for deprivation of civil rights.

Justice Barrett wrote that according to the so-called state action doctrine, the test for “actual authority” must be “rooted in written law or longstanding custom to speak for the State.”

“That authority must extend to speech of the sort that caused the alleged rights deprivation. If the plaintiff cannot make this threshold showing of authority, he cannot establish state action.”

“For social-media activity to constitute state action, an official must not only have state authority—he must also purport to use it,” the justice continued.

State officials have a choice about the capacity in which they choose to speak.

Citing previous precedent, Justice Barrett wrote that generally a public employee claiming to speak on behalf of the government acts with state authority when he speaks “in his official capacity or” when he uses his speech to carry out “his responsibilities pursuant to state law.”

“If the public employee does not use his speech in furtherance of his official responsibilities, he is speaking in his own voice.”

The Supreme Court remanded the case to the 6th Circuit with instructions to vacate its judgment and ordered it to conduct “further proceedings consistent with this opinion.”

Also on March 15, the Supreme Court ruled on O’Connor-Ratcliff v. Garnier, a related case. The court’s sparse, unanimous opinion was unsigned.

Petitioners Michelle O’Connor-Ratcliff and T.J. Zane were two elected members of the Poway Unified School District Board of Trustees in California who used their personal Facebook and Twitter accounts to communicate with the public.

Respondents Christopher Garnier and Kimberly Garnier, parents of local students, “spammed Petitioners’ posts and tweets with repetitive comments and replies” so the school board members blocked the respondents from the accounts, according to the petition filed by Ms. O’Connor-Ratcliff and Mr. Zane.

But the Garniers said they were acting in good faith.

“The Garniers left comments exposing financial mismanagement by the former superintendent as well as incidents of racism,” the couple said in a brief.

The U.S. Court of Appeals for the 9th Circuit found in favor of the Garniers, holding that elected officials using social media accounts were participating in a public forum.

The Supreme Court ruled in a three-page opinion that because the 9th Circuit deviated from the standard the high court articulated in Lindke v. Freed, the 9th Circuit’s decision must be vacated.

The case was remanded to the 9th Circuit “for further proceedings consistent with our opinion” in the Lindke case, the Supreme Court stated.

Tyler Durden Sun, 03/17/2024 - 22:10

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International

Home buyers must now navigate higher mortgage rates and prices

Rates under 4% came and went during the Covid pandemic, but home prices soared. Here’s what buyers and sellers face as the housing season ramps up.

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Springtime is spreading across the country. You can see it as daffodil, camellia, tulip and other blossoms start to emerge. 

You can also see it in the increasing number of for sale signs popping up in front of homes, along with the painting, gardening and general sprucing up as buyers get ready to sell. 

Which leads to two questions: 

  • How is the real estate market this spring? 
  • Where are mortgage rates? 

What buyers and sellers face

The housing market is bedeviled with supply shortages, high prices and slow sales.

Mortgage rates are still high and may limit what a buyer can offer and a seller can expect.  

Related: Analyst warns that a TikTok ban could lead to major trouble for Apple, Big Tech

And there's a factor not expected that may affect the sales process. Fixed commission rates on home sales are going away in July.

Reports this week and in a week will make the situation clearer for buyers and sellers. 

The reports are:

  • Housing starts from the U.S. Commerce Department due Tuesday. The consensus estimate is for a seasonally adjusted rate of about 1.4 million homes. These would include apartments, both rentals and condominiums. 
  • Existing home sales, due Thursday from the National Association of Realtors. The consensus estimate is for a seasonally adjusted sales rate of about 4 million homes. In 2023, some 4.1 million homes were sold, the worst sales rate since 1995. 
  • New-home sales and prices, due Monday from the Commerce Department. Analysts are expecting a sales rate of 661,000 homes (including condos), up 1.5% from a year ago.

Here is what buyers and sellers need to know about the situation. 

Mortgage rates will stay above 5% 

That's what most analysts believe. Right now, the rate on a 30-year mortgage is between 6.7% and 7%. 

Rates peaked at 8% in October after the Federal Reserve signaled it was done raising interest rates.

The Freddie Mac Primary Mortgage Market Survey of March 14 was at 6.74%. 

Freddie Mac buys mortgages from lenders and sells securities to investors. The effect is to replenish lenders' cash levels to make more loans. 

A hotter-than-expected Producer Price Index released that day has pushed quotes to 7% or higher, according to data from Mortgage News Daily, which tracks mortgage markets.

Home buyers must navigate higher mortgage rates and prices this spring.

TheStreet

On a median-priced home (price: $380,000) and a 20% down payment, that means a principal and interest rate payment of $2,022. The payment  does not include taxes and insurance.

Last fall when the 30-year rate hit 8%, the payment would have been $2,230. 

In 2021, the average rate was 2.96%, which translated into a payment of $1,275. 

Short of a depression, that's a rate that won't happen in most of our lifetimes. 

Most economists believe current rates will fall to around 6.3% by the end of the year, maybe lower, depending on how many times the Federal Reserve cuts rates this year. 

If 6%, the payment on our median-priced home is $1,823.

But under 5%, absent a nasty recession, fuhgettaboutit.

Supply will be tight, keeping prices up

Two factors are affecting the supply of homes for sale in just about every market.

First: Homeowners who had been able to land a mortgage at 2.96% are very reluctant to sell because they would then have to find a home they could afford with, probably, a higher-cost mortgage.

More economic news:

Second, the combination of high prices and high mortgage rates are freezing out thousands of potential buyers, especially those looking for homes in lower price ranges.

Indeed, The Wall Street Journal noted that online brokerage Redfin said only about 20% of homes for sale in February were affordable for the typical household.

And here mortgage rates can play one last nasty trick. If rates fall, that means a buyer can afford to pay more. Sellers and their real-estate agents know this too, and may ask for a higher price. 

Covid's last laugh: An inflation surge

Mortgage rates jumped to 8% or higher because since 2022 the Federal Reserve has been fighting to knock inflation down to 2% a year. Raising interest rates was the ammunition to battle rising prices.

In June 2022, the consumer price index was 9.1% higher than a year earlier. 

The causes of the worst inflation since the 1970s were: 

  • Covid-19 pandemic, which caused the global economy to shut down in 2020. When Covid ebbed and people got back to living their lives, getting global supply chains back to normal operation proved difficult. 
  • Oil prices jumped to record levels because of the recovery from the pandemic recovery and Russia's invasion of Ukraine.

What the changes in commissions means

The long-standing practice of paying real-estate agents will be retired this summer, after the National Association of Realtors settled a long and bitter legal fight.

No longer will the seller necessarily pay 6% of the sale price to split between buyer and seller agents.

Both sellers and buyers will have to negotiate separately the services agents have charged for 100 years or more. These include pre-screening properties, writing sales contracts, and the like. The change will continue a trend of adding costs and complications to the process of buying or selling a home.

Already, interest rates are a complication. In addition, homeowners insurance has become very pricey, especially in communities vulnerable to hurricanes, tornadoes, and forest fires. Florida homeowners have seen premiums jump more than 102% in the last three years. A policy now costs three times more than the national average.

Related: Veteran fund manager picks favorite stocks for 2024

 

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Default: San Francisco Four Seasons Hotel Investors $3 Million Late On Loan As Foreclosure Looms

Default: San Francisco Four Seasons Hotel Investors $3 Million Late On Loan As Foreclosure Looms

Westbrook Partners, which acquired the San…

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Default: San Francisco Four Seasons Hotel Investors $3 Million Late On Loan As Foreclosure Looms

Westbrook Partners, which acquired the San Francisco Four Seasons luxury hotel building, has been served a notice of default, as the developer has failed to make its monthly loan payment since December, and is currently behind by more than $3 million, the San Francisco Business Times reports.

Westbrook, which acquired the property at 345 California Center in 2019, has 90 days to bring their account current with its lender or face foreclosure.

Related

As SF Gate notes, downtown San Francisco hotel investors have had a terrible few years - with interest rates higher than their pre-pandemic levels, and local tourism continuing to suffer thanks to the city's legendary mismanagement that has resulted in overlapping drug, crime, and homelessness crises (which SF Gate characterizes as "a negative media narrative).

Last summer, the owner of San Francisco’s Hilton Union Square and Parc 55 hotels abandoned its loan in the first major default. Industry insiders speculate that loan defaults like this may become more common given the difficult period for investors.

At a visitor impact summit in August, a senior director of hospitality analytics for the CoStar Group reported that there are 22 active commercial mortgage-backed securities loans for hotels in San Francisco maturing in the next two years. Of these hotel loans, 17 are on CoStar’s “watchlist,” as they are at a higher risk of default, the analyst said. -SF Gate

The 155-room Four Seasons San Francisco at Embarcadero currenly occupies the top 11 floors of the iconic skyscrper. After slow renovations, the hotel officially reopened in the summer of 2021.

"Regarding the landscape of the hotel community in San Francisco, the short term is a challenging situation due to high interest rates, fewer guests compared to pre-pandemic and the relatively high costs attached with doing business here," Alex Bastian, President and CEO of the Hotel Council of San Francisco, told SFGATE.

Heightened Risks

In January, the owner of the Hilton Financial District at 750 Kearny St. - Portsmouth Square's affiliate Justice Operating Company - defaulted on the property, which had a $97 million loan on the 544-room hotel taken out in 2013. The company says it proposed a loan modification agreement which was under review by the servicer, LNR Partners.

Meanwhile last year Park Hotels & Resorts gave up ownership of two properties, Parc 55 and Hilton Union Square - which were transferred to a receiver that assumed management.

In the third quarter of 2023, the most recent data available, the Hilton Financial District reported $11.1 million in revenue, down from $12.3 million from the third quarter of 2022. The hotel had a net operating loss of $1.56 million in the most recent third quarter.

Occupancy fell to 88% with an average daily rate of $218 in the third quarter compared with 94% and $230 in the same period of 2022. -SF Chronicle

According to the Chronicle, San Francisco's 2024 convention calendar is lighter than it was last year - in part due to key events leaving the city for cheaper, less crime-ridden places like Las Vegas

Tyler Durden Sun, 03/17/2024 - 18:05

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