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Stock Market News For Today August 23, 2021

Stocks and oil appear to be recovering even as Delta variant fears persist.
The post Stock Market News For Today August 23, 2021 appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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Stock Futures Edged Higher Ahead Of Economic Data

U.S. stock futures are ticking higher after a volatile week on Wall Street. Investors are eagerly eyeing the Jackson Hole symposium for clues. The event, which takes place from the coming Thursday to Saturday, could provide a hint on Fed’s timeline at dialing back its $120 billion a month bond-buying program. No doubt, the asset purchase program had been a major policy underpinning the stock market this year. At the same time, rising concerns that rapid spread of COVID-19 infections may slow the global economic recovery sent stocks lower in recent weeks.

“If there is any sign that the U.S. economy is slowing, the Fed won’t taper … There is a long way between laying out a pathway to tapering and actually doing it.”- Michael Hewson, chief market analyst at CMC Markets

Historically, August is a volatile month for the stock market, and this year is no different. Certainly, a variety of factors may have given investors reasons to pause. But some are taking a chance after a strong start in the Asian and European markets. As of 7:18 a.m. ET, the Dow, S&P 500, and Nasdaq futures are pointing to a rebound in the stock market today, moving 0.42%, 0.34%, and 0.30% higher respectively.

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Chinese Tech Stocks Rebound After 5-Week Selloff

Chinese tech stocks are poised to rebound in the stock market today. This came after the market’s slump into bear-territory last week, pushing their levels into a deeply oversold zone. If Hong Kong’s trading activity is of any indication, we could expect these Chinese tech stocks to tick higher when the market opens this morning. Bilibili (NASDAQ: BILI) and Tencent (OTCMKTS: TCEHY) were among those that surged in the Hong Kong stock market. Meanwhile, Alibaba (NYSE: BABA) remains oversold as it dropped to another record low in Hong Kong. 

After another week of heavy selling, some rebound can be expected as much of the tech sector is beginning to look like value plays … Volatility in the sector may ease as markets settle into the new reality of long-term reforms, but there is still quite a lot of uncertainty on the impact to the sector’s growth profile”- Marvin Chen, Analyst at Bloomberg Intelligence.

While many investors remain cautious, the recent selloff has created opportunities for some. Some are also keeping in mind that China recently reported worse-than-expected retail sales growth. There are a handful of Chinese stocks reporting earnings this week. Amongst them, JD.com (NASDAQ: JD) reported its second-quarter results this morning. In detail, net revenues for the quarter were RMB 253.8 billion ($39.3 billion), a 26.2% increase year-over-year.

U.S. Stock Futures
Source: TD Ameritrade TOS

[Read More] Best Communication Stocks To Watch Right Now 

Crypto Continues To Rebound As Bitcoin Topped $50,000

Bitcoin has surpassed the $50,000 mark as it continues to climb after months of weakness. The recovery comes after Bitcoin was trading sideways over the past several months. It had dropped from a record of almost $65,000 in mid-April. Overall, some would argue that these are positive signs for the crypto trade as investor interest continues to grow. The global cryptocurrency market cap was at $2.16 trillion on Sunday, according to data from CoinGecko.com.

Another factor to consider in the broader crypto trade now would be wider adoption. Notably, fintech giant PayPal (NASDAQ: PYPL) is launching a cryptocurrency service in the United Kingdom. Like the U.S. version of the product, the online payment giant is relying on Paxos to enable British customers to buy, hold, and sell digital currencies.  

In April, the U.K. Treasury and Bank of England said they would evaluate the potential launch of a digital version of the British pound. The local press there calls it “Britcoin”. “It makes sense that, as there is increased consumer interest and increased volume, the regulators are putting more attention into this space,” da Ponte said, adding that PayPal has built “strong regulatory relations”.

[Read More] Hot 5G Stocks To Buy As The Stock Market Rebounds? 3 In Focus

Oil Prices Rebound As Investor Snap Up Bargains

Oil prices reversed out of a seven-day losing streak on Monday. This came despite the lingering fears of how the spread of the Delta variant might affect fuel demand. The recent strength in the U.S. dollar also kept investor enthusiasm in check. Traders who want to dip their toes in the sector could also consider oil stocks. Here’s why.

According to the latest FactSet data,  the energy sector’s Q2 2021 revenue growth rate of 24.9% came in way higher than Wall Street’s estimate of 19.4%. What’s more impressive is that the sector reported earnings of $15.9 billion. That compares to a loss of $10.6 billion in the prior-year quarter. All of this is made possible with the stellar performance posted by oil giants ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX).

Sure, the outlook for the sector as a whole may not look as attractive as some might hope. But the recent dividend hikes could woo some investors back. Some of the notable oil companies that have announced dividend hikes are Royal Dutch Shell (NYSE: RDS.A), ConocoPhillips (NYSE: COP), and BP (NYSE: BP). And they have also reinstated share buybacks after bumper earnings. Whether such an initiative will work on long-term investors remains to be seen. 

[Read More] 4 Robotics Stocks To Watch Amid Rising Shifts To Automation

Earnings Winding Down

The stock market has struggled to find a direction after a volatile week. Investors are bracing for the withdrawal of unprecedented liquidity. Some investors might take some profit in a market that is pricing in peak earnings. Now, second-quarter earnings are largely in the rearview mirror. But a few companies are still on deck. Some of the companies reporting earnings before today’s opening bell include JD.com, VivoPower(NASDAQ: VVPR), and Ituran Location and Control (NASDAQ: ITRN). 

Alternatively, if you are looking to get in on earnings action after the closing bell, Palo Alto (NYSE: PANW) and Quipt Home Medical (NASDAQ: QIPT) are releasing their earnings too. Some of the most highly-anticipated earnings reports on Friday topped Wall Street’s expectations. For instance, Foot Locker(NYSE: FL) stock is surging in the pre-market trading today after a huge earnings beat. It also raised its full-year outlook for the second half of the year. Hence, whether it is to keep an eye on the Jackson Hole Economic Policy Symposium or simply chasing the remaining earnings reports, there should be enough to keep you occupied as we kick start the week.

The post Stock Market News For Today August 23, 2021 appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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Wendy’s has a new deal for daylight savings time haters

The Daylight Savings Time promotion slashes prices on breakfast.

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Daylight Savings Time, or the practice of advancing clocks an hour in the spring to maximize natural daylight, is a controversial practice because of the way it leaves many feeling off-sync and tired on the second Sunday in March when the change is made and one has one less hour to sleep in.

Despite annual "Abolish Daylight Savings Time" think pieces and online arguments that crop up with unwavering regularity, Daylight Savings in North America begins on March 10 this year.

Related: Coca-Cola has a new soda for Diet Coke fans

Tapping into some people's very vocal dislike of Daylight Savings Time, fast-food chain Wendy's  (WEN)  is launching a daylight savings promotion that is jokingly designed to make losing an hour of sleep less painful and encourage fans to order breakfast anyway.

Wendy's has recently made a big push to expand its breakfast menu.

Image source: Wendy's.

Promotion wants you to compensate for lost sleep with cheaper breakfast

As it is also meant to drive traffic to the Wendy's app, the promotion allows anyone who makes a purchase of $3 or more through the platform to get a free hot coffee, cold coffee or Frosty Cream Cold Brew.

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Available during the Wendy's breakfast hours of 6 a.m. and 10:30 a.m. (which, naturally, will feel even earlier due to Daylight Savings), the deal also allows customers to buy any of its breakfast sandwiches for $3. Items like the Sausage, Egg and Cheese Biscuit, Breakfast Baconator and Maple Bacon Chicken Croissant normally range in price between $4.50 and $7.

The choice of the latter is quite wide since, in the years following the pandemic, Wendy's has made a concerted effort to expand its breakfast menu with a range of new sandwiches with egg in them and sweet items such as the French Toast Sticks. The goal was both to stand out from competitors with a wider breakfast menu and increase traffic to its stores during early-morning hours.

Wendy's deal comes after controversy over 'dynamic pricing'

But last month, the chain known for the square shape of its burger patties ignited controversy after saying that it wanted to introduce "dynamic pricing" in which the cost of many of the items on its menu will vary depending on the time of day. In an earnings call, chief executive Kirk Tanner said that electronic billboards would allow restaurants to display various deals and promotions during slower times in the early morning and late at night.

Outcry was swift and Wendy's ended up walking back its plans with words that they were "misconstrued" as an intent to surge prices during its most popular periods.

While the company issued a statement saying that any changes were meant as "discounts and value offers" during quiet periods rather than raised prices during busy ones, the reputational damage was already done since many saw the clarification as another way to obfuscate its pricing model.

"We said these menuboards would give us more flexibility to change the display of featured items," Wendy's said in its statement. "This was misconstrued in some media reports as an intent to raise prices when demand is highest at our restaurants."

The Daylight Savings Time promotion, in turn, is also a way to demonstrate the kinds of deals Wendy's wants to promote in its stores without putting up full-sized advertising or posters for what is only relevant for a few days.

Related: Veteran fund manager picks favorite stocks for 2024

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Shipping company files surprise Chapter 7 bankruptcy, liquidation

While demand for trucking has increased, so have costs and competition, which have forced a number of players to close.

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The U.S. economy is built on trucks.

As a nation we have relatively limited train assets, and while in recent years planes have played an expanded role in moving goods, trucks still represent the backbone of how everything — food, gasoline, commodities, and pretty much anything else — moves around the country.

Related: Fast-food chain closes more stores after Chapter 11 bankruptcy

"Trucks moved 61.1% of the tonnage and 64.9% of the value of these shipments. The average shipment by truck was 63 miles compared to an average of 640 miles by rail," according to the U.S. Bureau of Transportation Statistics 2023 numbers.

But running a trucking company has been tricky because the largest players have economies of scale that smaller operators don't. That puts any trucking company that's not a massive player very sensitive to increases in gas prices or drops in freight rates.

And that in turn has led a number of trucking companies, including Yellow Freight, the third-largest less-than-truckload operator; J.J. & Sons Logistics, Meadow Lark, and Boateng Logistics, to close while freight brokerage Convoy shut down in October.

Aside from Convoy, none of these brands are household names. but with the demand for trucking increasing, every company that goes out of business puts more pressure on those that remain, which contributes to increased prices.

Demand for trucking has continued to increase.

Image source: Shutterstock

Another freight company closes and plans to liquidate

Not every bankruptcy filing explains why a company has gone out of business. In the trucking industry, multiple recent Chapter 7 bankruptcies have been tied to lawsuits that pushed otherwise successful companies into insolvency.

In the case of TBL Logistics, a Virginia-based national freight company, its Feb. 29 bankruptcy filing in U.S. Bankruptcy Court for the Western District of Virginia appears to be death by too much debt.

"In its filing, TBL Logistics listed its assets and liabilities as between $1 million and $10 million. The company stated that it has up to 49 creditors and maintains that no funds will be available for unsecured creditors once it pays administrative fees," Freightwaves reported.

The company's owners, Christopher and Melinda Bradner, did not respond to the website's request for comment.

Before it closed, TBL Logistics specialized in refrigerated and oversized loads. The company described its business on its website.

"TBL Logistics is a non-asset-based third-party logistics freight broker company providing reliable and efficient transportation solutions, management, and storage for businesses of all sizes. With our extensive network of carriers and industry expertise, we streamline the shipping process, ensuring your goods reach their destination safely and on time."

The world has a truck-driver shortage

The covid pandemic forced companies to consider their supply chain in ways they never had to before. Increased demand showed the weakness in the trucking industry and drew attention to how difficult life for truck drivers can be.

That was an issue HBO's John Oliver highlighted on his "Last Week Tonight" show in October 2022. In the episode, the host suggested that the U.S. would basically start to starve if the trucking industry shut down for three days.

"Sorry, three days, every produce department in America would go from a fully stocked market to an all-you-can-eat raccoon buffet," he said. "So it’s no wonder trucking’s a huge industry, with more than 3.5 million people in America working as drivers, from port truckers who bring goods off ships to railyards and warehouses, to long-haul truckers who move them across the country, to 'last-mile' drivers, who take care of local delivery." 

The show highlighted how many truck drivers face low pay, difficult working conditions and, in many cases, crushing debt.

"Hundreds of thousands of people become truck drivers every year. But hundreds of thousands also quit. Job turnover for truckers averages over 100%, and at some companies it’s as high as 300%, meaning they’re hiring three people for a single job over the course of a year. And when a field this important has a level of job satisfaction that low, it sure seems like there’s a huge problem," Oliver shared.

The truck-driver shortage is not just a U.S. problem; it's a global issue, according to IRU.org.

"IRU’s 2023 driver shortage report has found that over three million truck driver jobs are unfilled, or 7% of total positions, in 36 countries studied," the global transportation trade association reported. 

"With the huge gap between young and old drivers growing, it will get much worse over the next five years without significant action."

Related: Veteran fund manager picks favorite stocks for 2024

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United Airlines adds new flights to faraway destinations

The airline said that it has been working hard to "find hidden gem destinations."

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Since countries started opening up after the pandemic in 2021 and 2022, airlines have been seeing demand soar not just for major global cities and popular routes but also for farther-away destinations.

Numerous reports, including a recent TripAdvisor survey of trending destinations, showed that there has been a rise in U.S. traveler interest in Asian countries such as Japan, South Korea and Vietnam as well as growing tourism traction in off-the-beaten-path European countries such as Slovenia, Estonia and Montenegro.

Related: 'No more flying for you': Travel agency sounds alarm over risk of 'carbon passports'

As a result, airlines have been looking at their networks to include more faraway destinations as well as smaller cities that are growing increasingly popular with tourists and may not be served by their competitors.

The Philippines has been popular among tourists in recent years.

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United brings back more routes, says it is committed to 'finding hidden gems'

This week, United Airlines  (UAL)  announced that it will be launching a new route from Newark Liberty International Airport (EWR) to Morocco's Marrakesh. While it is only the country's fourth-largest city, Marrakesh is a particularly popular place for tourists to seek out the sights and experiences that many associate with the country — colorful souks, gardens with ornate architecture and mosques from the Moorish period.

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"We have consistently been ahead of the curve in finding hidden gem destinations for our customers to explore and remain committed to providing the most unique slate of travel options for their adventures abroad," United's SVP of Global Network Planning Patrick Quayle, said in a press statement.

The new route will launch on Oct. 24 and take place three times a week on a Boeing 767-300ER  (BA)  plane that is equipped with 46 Polaris business class and 22 Premium Plus seats. The plane choice was a way to reach a luxury customer customer looking to start their holiday in Marrakesh in the plane.

Along with the new Morocco route, United is also launching a flight between Houston (IAH) and Colombia's Medellín on Oct. 27 as well as a route between Tokyo and Cebu in the Philippines on July 31 — the latter is known as a "fifth freedom" flight in which the airline flies to the larger hub from the mainland U.S. and then goes on to smaller Asian city popular with tourists after some travelers get off (and others get on) in Tokyo.

United's network expansion includes new 'fifth freedom' flight

In the fall of 2023, United became the first U.S. airline to fly to the Philippines with a new Manila-San Francisco flight. It has expanded its service to Asia from different U.S. cities earlier last year. Cebu has been on its radar amid growing tourist interest in the region known for marine parks, rainforests and Spanish-style architecture.

With the summer coming up, United also announced that it plans to run its current flights to Hong Kong, Seoul, and Portugal's Porto more frequently at different points of the week and reach four weekly flights between Los Angeles and Shanghai by August 29.

"This is your normal, exciting network planning team back in action," Quayle told travel website The Points Guy of the airline's plans for the new routes.

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