Category Archives: Business

Business

Teaser Hints That The 2022 Subaru WRX Will Debut This Year

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Photo: Subaru

What an abundance of riches we have coming from Subaru so far this year. The new BRZ looks sharp and gets just enough improvement to keep things interesting, and now we’re already getting primed up for what I think most of us really want: the 2022 Subaru WRX.

Subaru is very excited to introduce you to its upcoming WRX, which by the looks of things in this shadowy teaser image is still a proper sedan. Subie is so excited it could barely finish two sentences before sending out this official release:

Subaru of America, Inc. today announced the all-new 2022 WRX will debut this year. Stay tuned to www.subaru.com/2022-wrx for updates.

While that isn’t much to go off of, navigating to that link in your browser brings up a little more information:

Stay tuned: The newest WRX will be here so fast, it will take your breath away.

The legend of the WRX gets an all-new, even more thrilling chapter. The Subaru WRX world premiere is coming and you’ll be able to watch the live unveiling. Sign up to be one of the first to see the powerful, agile, completely redesigned 2022 WRX.

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There’s no hint of when this unveiling will happen beyond sometime later this year. All I know is there is definitely a hood scoop on the car in the image provided.

Last we heard about the upcoming, overhauled WRX sedan in Feb. 2020, Forbes of all sources was reporting that the sporty STI model could get a reworked FA24 engine from the Ascent SUV, possibly with hybrid power. Jalopnik contributor Bozi Tatarevic also speculated that could happen back in 2017.

The FA24 is a 2.4-liter boxer four-cylinder engine, which is turbocharged to put out 260 horsepower and 277 lb-ft of torque in the current Subaru Ascent, Legacy and Outback models.

Last year, Forbes claimed that Subaru was also developing a hybrid powertrain and had allegedly benchmarked a Mercedes-AMG motor, the turbocharged 2.0-liter making 416 HP and 369 lb-ft of torque found in the AMG A45 and CLA 45, for the upcoming STI.

The most powerful WRX so far was the 341-horsepower S209 a couple years ago. To get to 400 horsepower from there, on a WRX, would be quite the jump. All we know for now is that we’ll see the regular WRX in the next six months, and I personally hope it looks at least alright.



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Business

Didi Global Prices IPO at $14 a Share

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Chinese ride-hailing goliath Didi Global Inc. priced its IPO at $14 on Tuesday afternoon, according to people familiar with the matter, setting the stage for the company to begin trading Wednesday, after it made a lightning-fast pitch to potential investors.

The company sold more stock than it had planned, though the new deal size couldn’t immediately be learned. Given the upsizing, the pricing would give Didi a market capitalization of more than $67 billion, which would trail U.S. ride-hailing firm Uber Technologies Inc.’s roughly $95 billion but land well ahead of Lyft Inc., which sits at roughly $20 billion.

Didi’s fully diluted valuation, which typically includes restricted stock units, would easily eclipse $70 billion at the initial-public-offering price, confirming earlier reports by The Wall Street Journal.

Didi’s pricing comes just three business days after it launched its roadshow, making it one of the shortest investor pitches for an initial public offering in recent memory, according to bankers, investors and lawyers.

Didi ran its roadshow through round-the-clock virtual meetings because of time-zone differences, according to people who participated. Company executives focused on Didi’s scale and potential for continuing growth, the people said. The executives emphasized that 70% of China’s population will live in cities by 2030 and that few people own cars in those cities—and far fewer than in the U.S. Didi argues it is in position to capitalize on that, from shared mobility in general to its investments in electric vehicles and artificial intelligence.

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Business

Trader says market has decided winner of electric vehicle race

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The stock market has already picked a winner in the race to mass electric-vehicle production, one market analyst says.

Tesla’s lofty valuation — 137 times forward price-to-earnings as of Tuesday’s close — speaks volumes about where investors are placing their bets as legacy auto manufacturers rush to develop their own EV projects, TradingAnalysis.com founder Todd Gordon told CNBC’s “Trading Nation” on Tuesday.

UBS Global Research weighed in on the competition in a Tuesday note, saying Volkswagen, General Motors and Hyundai were “likely to emerge as best EV re-rating stories.” The firm also cut its price target on Tesla’s stock to $660 from $730 and upped its targets for GM and Ford.

Ford is having its best year since 2009, and GM its best since 2013. Tesla is having its worst year since 2016.

The legacy automakers “will certainly gain market share in the near term on Tesla,” Gordon said.

“But if you look at the billions of miles driven that Tesla has plugged into their major data centers compared to what the other EVs have, it’s not even funny,” he said. “The one who has the most data will ultimately be victorious. So, sure, they can gain some short-term market share, but I think longer term, … I think the market is already voting who the winner will be.”

Tesla’s stock chart stacks up to the company’s technological potential, Gordon said, adding that he bought on a recent dip.

“I added a third to my position at about 580 on June 3,” he said. “I’m continuing to be a Tesla bull. This is a long run play that I probably will hold for years to come.”

Tesla shares were down just over 1%, at $680.76, on Tuesday.

Ford’s chart does stand out as a short-term opportunity, however, Gordon said.

The stock has regained ground thanks to strong earnings reports in recent quarters, breaking above a significant long-term downtrend, he said.

“As long as we hold about $10 or $11, the artist formerly known as resistance now is support,” Gordon said. “That’s sort of any place to buy.”

Ford shares ended trading less than half of 1% higher, at $15.01.

Tesla found another fan in New Street Advisors Group founder and CEO Delano Saporu.

UBS’ own survey found that 43% of respondents in China who intended to purchase an electric vehicle considered Tesla, Saporu noted in the same “Trading Nation” interview.

“That brand is still strong, even with some of the negative sentiment,” he said. “The other thing that I really like is it’s nearing levels that are pretty low and that growth trade is starting to come back into play now.”

That could make for a catalyst in Tesla’s stock, Saporu said, adding that even though Tesla is comparatively expensive, Ford and GM are also “a little bit overbought at this point.”

“I think we still have a bit to go when it comes to Tesla, and I’m still very bullish on Tesla,” Saporu said.

Disclosure: Gordon owns shares of Tesla. Saporu owns shares of Tesla personally and for clients.

Disclaimer

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Business

Juul to pay N.C. $40M and stop targeting kids after igniting vaping “epidemic“

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Enlarge / Juul went with a fashionable, “cool” marketing strategy.

Electronic cigarette maker Juul and the state of North Carolina have reached a settlement over the state’s claims that Juul aggressively targeted its “highly addictive” products to youth, igniting a vaping epidemic.

While still denying any wrongdoing, Juul has agreed to pay North Carolina a total of $40 million over six years. Additionally, the company will adhere to a list of restrictions aimed at blocking any promotion and sales of its products to youths. According to the list, Juul won’t use advertisements that may appeal to youth; it will avoid most social media advertising and the use of influencers; it won’t sponsor sports and entertainment events, like concerts; and it won’t use anyone under the age of 35 in its marketing.

The company also agreed to help enforce age restrictions by running a “secret shopper” program. Juul will send undercover representatives, ages 21 to 27, into at least 50 stores throughout the Tar-Heel State per month to check whether retailers verify buyers’ ages.

The settlement comes after years of allegations and fiery criticism that Juul intentionally and egregiously targeted adolescents in its marketing campaigns and advertisements, which critics say were directly responsible for soaring levels of vaping among teens. According to a lawsuit filed last year by Massachusetts Attorney General Maura Healey, Juul’s marketing campaigns in 2015 and 2016 included running ads on websites such as Cartoon Network’s cartoonnetwork.com and Nickelodeon’s sites Nick.com and NickJr.com. And congressional testimony in summer 2019 revealed that Juul representatives gave presentations to teens inside schools, without teachers present or parental consent.

Wins and cases

According to the Centers for Disease Control and Prevention, the use of e-cigarettes among high schoolers jumped from 1.5 percent in 2011 to 27.5 percent in 2019—meaning that more than one in four high school students reported using e-cigarettes within the previous 30 days at the time of the 2019 survey. That percentage fell just shy of 20 percent in 2020, following a crackdown in Juul advertising and sales of flavored products. The federal government also increased the vaping age restriction to 21.

North Carolina Attorney General Josh Stein sees the settlement as another step in dragging down e-cigarette use among teens.

“For years, JUUL targeted young people, including teens, with its highly addictive e-cigarette. It lit the spark and fanned the flames of a vaping epidemic among our children–one that you can see in any high school in North Carolina,” Stein said in a statement. “This win will go a long way in keeping JUUL products out of kids’ hands, keeping its chemical vapor out of their lungs, and keeping its nicotine from poisoning and addicting their brains.”

In its own statement, Juul said the settlement “is consistent with our ongoing effort to reset our company and its relationship with our stakeholders, as we continue to combat underage usage and advance the opportunity for harm reduction for adult smokers… We seek to continue to earn trust through action.”

The resolution of the lawsuit with North Carolina is likely just the start of legal movement for Juul. Several other states, including Massachusetts, have filed lawsuits against the company. The Associated Press reports that 39 state attorneys general have also been working together since February 2020 to investigate the company’s marketing and products. In addition, the company faces hundreds of personal injury lawsuits, which have been consolidated in a California federal case.

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Business

Stocks Move Higher After Nasdaq, S&P 500 Records

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U.S. stocks edged up Tuesday in a choppy trading session that saw modest gains in economically sensitive and growth stocks alike.

The S&P 500 ticked up less than 0.1% in afternoon trading, as shares of home builders, energy stocks and technology companies rose. The gains put the benchmark index on pace to close at its 33rd record of the year—a figure that would tie the number seen in all of 2020.

The Dow Jones Industrial Average also rose, gaining about 25 points, or 0.1%. The Nasdaq Composite likewise edged higher, gaining 0.1% and on pace for its own record high, after wobbling between gains and losses earlier in the day.

Driving Tuesday’s rally was, in part, data from private research group The Conference Board. Its index of consumer confidence rose in June, beating analysts’ expectations. The survey found that consumers’ optimism was lifted by expectations that business conditions will improve and their own incomes will increase in the months ahead.

Additional data released Tuesday also showed that home-price growth climbed to a record high in April. Shares of home builders including PulteGroup and Lennar rallied 2.2% and 1%, respectively.

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Business

Opinion: Housing demand is about to weaken. Here’s why

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Despite being overvalued, there is no sign the housing market is in a bubble. (A bubble develops when there is speculation, or when buyers purchase homes with the sole intent of selling quickly for a profit, which isn’t happening today.) But stress lines are beginning to appear, and the housing market is set to cool off.

The increase in home prices is stunning. Nationwide, house prices are up double digits over the past year, and this comes after a decade of solid price gains since the housing market bottomed in the aftermath of the financial crisis. Indeed, the median existing home price — half of homes sold for more and half for less — is closing in on $350,000, almost double what it was a decade ago.
Think about the return you would have earned if you had the gumption to buy the median-priced home at the bottom of the market after the financial crisis, say with a typical 20% down payment. It comes to an approximately 560% return.
There simply aren’t enough new homes right now to meet demand, and the vacancy rate for homes for sale has never been lower. Homebuilders have been slow to put up more homes, especially at lower price points, given more restrictive zoning since the financial crisis, and much higher labor and material costs recently.
The house price gains are powered by the collapse of fixed mortgage rates to record lows during the pandemic. They have risen a bit in recent months, but they are still below 3%, making them extraordinarily attractive. Since most homebuyers purchase as much home as their mortgage payment will allow, lower mortgage rates quickly juice up demand and house prices, particularly when there is a shortage of homes.
Further supercharging house prices has been the pandemic-fueled work-from-anywhere phenomenon. This has driven apartment-dwelling households in the nation’s biggest cities to move to homes in the suburbs, exurbs, and smaller towns and cities. New Yorkers and Californians, who are used to outsize house prices, viewed much lower prices in smaller communities as bargains, even though they paid much more than any previous buyer had.
The federal government’s yeoman efforts to shore up the single-family mortgage market during the pandemic also bolstered the housing market and home prices. The foreclosure moratorium and the forbearance on government-backed mortgage and student loan payments have forestalled distressed homes sales, which typically are sold at big price discounts, and thus weigh on house prices.

Stress lines beginning to show

But stress lines are beginning to show in the housing market. Home prices have risen so far, so fast, that they have become overvalued. Nationwide, house prices appear overvalued by approximately 10% to 15% when comparing price-to-income or price-to-rent ratios with their long-run historical averages, according to my analysis. Some markets, mostly in the South and West, are seriously overvalued — by more than 20%.
Overvalued housing markets are vulnerable to a meaningful price correction as mortgage rates eventually rise. And they will. The Federal Reserve thinks the economy is set to quickly return to full health and is signaling that it will thus soon begin to normalize interest rates. Moreover, work from anywhere, while likely a fundamental change in the way we live and work, is also sure to partially unwind as companies ask their employees to come back into the office. And the foreclosure moratorium and mortgage and student loan forbearances are set to expire in coming weeks.

Housing demand will thus weaken. House prices will adjust. Not that there will be broad-based house price declines; that still seems a small threat. That would require a significant increase in mortgage defaults and distressed sales, which is unlikely given the improving job market and generally tight mortgage underwriting standards since the financial crisis.

Moreover, the housing market isn’t in a bubble. Unlike the housing bubble we saw prior to the financial crisis, house flips, defined as an arms-length sale within one year of the previous sale, remain low, according to my analysis. And much of the flipping that is happening is by investors purchasing older homes, particularly in older Northeast and Midwestern cities, renovating them, and then quickly selling.

But house price gains are sure to cool off, a lot. There may even be some modest price declines in the most hyped-up high-end parts of the housing market, in second- and vacation-home locations, and in smaller and midsize cities that have seen the biggest influx of work-from-anywhere households. And while being a homeowner is generally better financially than being a renter, homeowners shouldn’t count on the outsize returns they enjoyed in the past decade to come anywhere close to repeating in the coming one.

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Business

Dow Jones Futures: Market Rally At Key Level As Inflation Fears Intensify Sell-Off; Bitcoin Plunges On Tesla Move

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Dow Jones futures rose modestly late Wednesday, along with S&P 500 futures and Nasdaq futures. The stock market rally suffered another day of heavy losses as a big jump in inflation scared investors, pushing Treasury yields significantly higher.




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Bitcoin tumbled after Tesla CEO Elon Musk said his company would no longer let people make vehicle purchases via Bitcoin, citing the cryptocurrency’s heavy energy use.

The Colonial Pipeline restarted operations Wednesday afternoon, as gasoline supplies ran increasingly low across the East Coast. Chinese e-commerce giant Alibaba (BABA) is on deck to report earnings early Thursday

Apple stock, Tesla (TSLA), Microsoft (MSFT), Amazon.com (AMZN), Square (SQ), Floor & Decor (FND) and Lam Research (LRCX) tested, undercut or decisively broke key support in Wednesday’s sell-off.

After rallying from intraday lows on Tuesday, especially the Nasdaq, the major indexes and small-cap Russell 2000 all undercut Tuesday’s lows and closed near their worst levels. Chip stocks were hammered again but so were tech titans, software and highly valued growth stocks, including the likes of Tesla, Apple (AAPL), Microsoft, Amazon, Square and Lam Research. Housing-related stocks such as Floor & Decor sold off hard again. Miners and metals stock tumbled, though their charts generally look OK. Financials also gave up ground after initially holding up.

One positive sign is that investors are becoming a little more fearful and a little less bullish, according to the CBOE Volatility Index, put-call ratio and the Bulls vs. Bears reading. While nowhere near excessive bearishness that might foreshadow a market bottom, they at least are no longer excessively bullish.

Outdoor cooler and drinkware maker Yeti Holdings (YETI) and artificial decking products firm Azek (AZEK) report before the open, along with Alibaba stock. Yeti stock fell back into a buy zone Wednesday. Azek, which dropped below a buy point Tuesday, tumbled below its 50-day line on Wednesday and flashed an automatic sell signal. It fell further below the buy point and below its 50-day line. BABA stock is trading near 10-month lows as Chinese internets and U.S.-listed Chinese equities overall have struggled for months.

Microsoft and Floor & Decor are on IBD Leaderboard. Microsoft stock also is on IBD Long-Term Leaders. FND and Square stock are on the IBD 50.

How To Spot Stock Market Tops

Inflation Jumps, With PPI On Tap

Consumer prices rose 0.8%, the Labor Department reported Tuesday morning, while core CPI popped 0.9%, the most since 1982. Both were much higher than expected. Year over year, consumer prices swelled 4.2%, the highest since 2008. Core inflation climbed 3%, the most since 1996.

Swelling price pressures are squeezing consumers and many businesses. But the Federal Reserve says higher inflation will be “transitory,” fading again in 2022. But the market fear is that inflation will rise even more than expected, and stay higher.

Unless Fed policymakers can convince investors that higher inflation will be temporary, or that they’ll quickly respond to sustained price pressures without overreacting, then financial markets may remain under a cloud indefinitely.

On Thursday, the Labor Department releases the producer price index. This raw-to-finished goods price gauge is more sensitive to soaring commodity prices.

Bitcoin Price Gets Musked

Bitcoin price plunged Wednesday night vs. 24 hours earlier to about $50,000, but off lows nearly $47,800, after Elon Musk announced on Twitter that people could no longer buy Tesla vehicles with the cryptocurrency. He cited the increasing use of fossil fuels for Bitcoin mining and transactions. Musk also said Tesla will not sell any Bitcoin but will use it for transactions once that digital asset is on a more-sustainable energy basis.

Tesla bought some Bitcoin in early 2021, and sold a portion before the end of the first quarter at a profit, boosting Q1 results.

Bitcoin and most other digital assets were already lower Wednesday amid a general “risk off” shift across financial markets.

Cryptocurrency exchange Coinbase (COIN) fell nearly 5% in late trading. COIN stock closed down 6.4%.

Dow Jones Futures Today

Dow Jones futures rose 0.4% vs. fair value. S&P 500 futures climbed 0.4%. Nasdaq 100 futures were up 0.4%.

Energy Secretary Jennifer Granholm said the Colonial Pipeline restarted operations at about 5 p.m. ET, a big positive for the U.S. economy though not a huge surprise. The largest U.S. gasoline pipeline, which serves the East Coast, was shut down Friday in response to a cyberattack. It will take a few days for supplies to return to normal with more and more gas stations running dry meanwhile.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live.

Coronavirus News

Coronavirus cases worldwide reached 161.07 million. Covid-19 deaths topped 3.34 million.

Coronavirus cases in the U.S. have hit 33.58 million, with deaths above 597,000.

Stock Market Rally

U.S. Stock Market Today Overview
Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 33731.16 -538.00 -1.57
S&P 500 (0S&P5) 4077.30 -74.80 -1.80
Nasdaq (0NDQC ) 13062.27 -327.16 -2.44
Russell 2000 (IWM) 213.36 -5.60 -2.56
IBD 50 (FFTY) 42.61 -1.86 -4.18
Last Update: 3:14 PM ET 5/12/2021

The stock market rally had an unambiguously bad day, selling off hard, closing near lows, with broad-based losses among the major indexes, sectors and leading stocks.

The Dow Jones Industrial Average slumped 2% in Wednesday’s stock market trading. The S&P 500 index retreated 2.15%. The Nasdaq composite skidded 2.7%. The Russell 2000 slumped 3.2%, hitting the lowest point since late March and the weakest close since Feb. 1.

The 10-year Treasury yield jumped 7 basis points to 1.695%, the highest in several weeks. It’s the fourth straight gain for the 10-year yield, which rebounded from an intraday low of 1.47% last Friday following the surprisingly weak April jobs report.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) lost 4.7%, while the Innovator IBD Breakout Opportunities ETF (BOUT) gave up 3.1%. The iShares Expanded Tech-Software Sector ETF (IGV) slumped 2.5%. MSFT stock is the largest IGV holding. The VanEck Vectors Semiconductor ETF (SMH) tumbled 4.1%. LRCX stock is a major SMH component.

SPDR S&P Metals & Mining ETF (XME) rolled back 4.7% and Global X U.S. Infrastructure Development ETF (PAVE) lost 3.2%. U.S. Global Jets ETF (JETS) sank 2.9%. SPDR S&P Homebuilders ETF (XHB) skidded 5%.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) fell 3.7% and ARK Genomics ETF (ARKG) 2.5%. Tesla stock is the No. 1 holding across ARK Invest’s ETFs. Square stock is also a top-five ARK holding.

Five Best Chinese Stocks To Buy And Watch Now

Key Stocks Breaking, Testing Key Support

Apple stock fell 2.5% to 122.77 on Wednesday. That’s just below its 200-day moving average and its weekly chart equivalent, the 40-week line. Just two days earlier, AAPL stock fell through its 50-day line. The relative strength line for AAPL stock is at the lowest level since last July.

Microsoft stock sank 2.9% to 239, breaking through its 50-day and below its 246.23 buy point. MSFT stock initially cleared the flat base, part of a base-on-base pattern, in early April.

Amazon stock slid 2.2% to 3,151.94, below its 50-day and 200-day lines. The RS line for AMZN stock hit a 10-month low earlier this week.

LRCX stock tumbled 5.9% to 557.67 after rallying to close just below its 50-day line on Tuesday. Just a few days ago, Lam Research stock looked poised to flash an early buy signal with one strong session, but the LRCX chart is damaged now.

Square stock tumbled 6.3% to 206.68, closing just above its 200-day moving average. But SQ stock ended a fraction below its 40-week line. The RS line for Square is at the lowest level since November.

Tesla stock slumped 4.4% to 589.89, bringing its weekly loss to 12.2%. TSLA stock is just above its 200-day line but, like Square stock, slightly below its 40-week line. Also, Tesla undercut its late March low, though it’s still above its early March bottom. The RS line for TSLA stock is at a 2021 low.

TSLA stock fell 1% in extended action.

FND stock slumped 4% to 101.39, flashing various sell signals. From an official buy point of 108.14 or 108.64, Floor & Decor stock is now down significantly and below its 50-day line. FND stock also has round tripped an earlier entry of 101.64.

How To Know It’s Time To Sell Your Favorite Stock

Market Rally Analysis

The stock market rally has clearly deteriorated over the last several days. The major indexes went right through Tuesday’s lows and moved toward testing or breaking new support levels.

The Dow Jones fell through its 21-day exponential moving average. The S&P 500 index, which closed Tuesday just below its 21-day line, neared its 50-day line. The S&P hasn’t tested that key level since an intraday dip on March 25. Breaking that 50-day line would be a very bad sign for the stock market rally, perhaps a fatal blow.

The Nasdaq composite is losing sight of its 50-day line. Its next support levels are its late March lows and then its early March nadir. The latter lines up fairly closely with the 200-day average, which the Nasdaq hasn’t touched in just over a year.

Tech appears to be weak across the board. The broad housing sector is struggling with Treasury yields rising. Even commodity plays were mixed to lower.

We’ve moved from a “hard penny” market to one in which investors struggle to make pennies with one hand while losing dollars with the other.

Good News Is Bad News … Is Good News

The only good news is that investors are paying attention to the bad news.

The CBOE Volatility Index, commonly as the VIX, shot up 26% to 27.57. The market’s fear gauge, which had been trading near 52-week lows, jumped 11% on Tuesday. It’s still below the late March and early March peaks — and far, far below the March 2020 top. That lines up with the major indexes early and late March lows.

The put-call ratio rose to 0.84, the highest since Oct. 30, when the stock market bottomed just ahead of the Election rally. Normally, the put-call ratio has to get well over 1.0 to flash excessive bullishness, but high call option buying over the past year seems to have distorted this indicator.

Meanwhile, the Bulls vs. Bears reading showed that 58.2% of investment newsletter writers are bullish, vs. 17.2% who are bearish. The bullish reading is down from 60.4% in the prior week and 63.4% in the week ended April 23. Readings over 60% are highly bullish.

What To Do Now

Investors should be reducing exposure. It’s OK to hold onto some winning stocks that are standing their ground or showing relative strength. But losers and laggards should be eliminated. Protecting your financial and mental capital is your top priority.

Yes, it’s always possible that Wednesday marked a low and that stocks will rally from here. After several days of losses, at least a temporary bounce from current levels wouldn’t be a surprise. But if it’s a rally that lasts for several weeks and months, you’ll have plenty of opportunities to make strong gains.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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Business

U.S. gives go-ahead for first major offshore wind farm

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The U.S. offshore wind sector took a major step forward Tuesday after authorities gave the green light for the construction and operation of the 800 megawatt (MW) Vineyard Wind 1 project.

In a statement, the U.S. Department of the Interior described the development, which will be located in waters off the coast of Massachusetts, as “the first large-scale, offshore wind project in the United States.”

The Vineyard Wind project, it said, was expected to generate 3,600 jobs and “provide enough power for 400,000 homes and businesses.”

The DOI added that a Record of Decision had granted Vineyard Wind “final federal approval to install 84 or fewer turbines off Massachusetts as part of an 800-megawatt offshore wind energy facility.”

According to the Vineyard Wind team, the facility will use GE Renewable Energy’s huge Haliade-X turbines, which will mean only 62 will actually be required.

Vineyard Wind is a 50-50 joint venture between Copenhagen Infrastructure Partners and Avangrid Renewables. The latter is a subsidiary of Avangrid, which is part of the Iberdrola Group, a major utility headquartered in Spain.

Iberdrola says investment in the project will amount to 2.5 billion euros ($3.03 billion). If all goes to plan, it could enter into service in 2023.

In a phone interview on Tuesday, Jonathan Cole, who is global managing director of offshore wind at Iberdrola, told CNBC that the project’s approval was “extremely significant.”

“This is the permit needed to now allow us to go ahead and build the project,” he said.

“This is the first of its kind in the U.S. and it’s expected to be followed by many other projects, so this is really the one which is going to kick off, in earnest, the U.S. offshore wind sector.” 

“So it’s a huge moment for this project and for our companies, but it’s also a huge moment for the whole of the U.S. offshore wind sector.”

Cole’s views were echoed by a number of organizations, including the National Ocean Industries Association.

Its president, Erik Milito, described the greenlighting of the Vineyard Wind project as “an American energy milestone.”

“American offshore wind is a generational opportunity, and its outlook is more certain with the Vineyard Wind Record of Decision,” he went on to add.

Elsewhere, Heather Zichal, who is CEO of the American Clean Power Association, hailed “a historic day for clean energy and for our country that has been over a decade in the making.”

“Now is the time to push forward on offshore wind, catch up to global competitors, and decarbonize our electric grid, so that the U.S. can deliver economic and environmental benefits to our citizens and combat climate change,” she added.

Tuesday’s news represents the latest shot in the arm for America’s fledgling offshore wind sector.

In March, the Departments of Energy, Interior and Commerce said they wanted offshore wind capacity to hit 30 gigawatts (GW) by 2030, a move the Biden administration hopes will generate thousands of jobs and unlock billions of dollars in investment over the coming years.

If this target is realized it would represent a significant expansion for the U.S. While America is home to a well-developed onshore wind industry, the country’s first offshore wind facility, the 30 MW Block Island Wind Farm, only started commercial operations in late 2016.

Preliminary figures from the U.S. Energy Information Administration show that, for 2020, wind’s share of utility-scale electricity generation came to 8.4%.

By contrast, natural gas and coal’s shares were 40.3% and 19.3% respectively. Overall, fossil fuels had a 60.3% share while nuclear and renewables had shares of 19.7% and 19.8%.

Looking at the global picture for offshore wind, the U.S. still has a ways to go before it catches up with more mature markets, such as the one found in Europe.

Last year, the sector there attracted over 26 billion euros (around $31.5 billion) of investment, a record amount, according to figures from industry body WindEurope. In 2020, 2.9 GW of offshore wind capacity was installed in Europe.

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Business

SpaceX accepts Dogecoin payment for DOGE-1 mission to the moon

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SpaceX founder Elon Musk gestures to the audience after being recognized by U.S. President Donald Trump at NASA’s Vehicle Assembly Building following the successful launch of a Falcon 9 rocket with the Crew Dragon spacecraft from pad 39A at the Kennedy Space Center

Paul Hennessy | SOPA Images | Getty Images

Elon Musk’s SpaceX will launch the “DOGE-1 Mission to the Moon” in the first quarter of 2022, with the company accepting the meme-inspired cryptocurrency as full payment for the lunar payload.

Geometric Energy Corporation announced the dogecoin-funded mission on Sunday, which SpaceX’s communications team confirmed in an email to reporters. The mission’s financial value was not disclosed.

DOGE-1 will fly a 40 kilogram cube satellite as a payload on a Falcon 9 rocket, with Geometric Energy Corporation saying its payload “will obtain lunar-spatial intelligence from sensors and cameras on-board with integrated communications and computational systems.”

SpaceX vice president of commercial sales Tom Ochinero said in a statement that DOGE-1 “will demonstrate the application of cryptocurrency beyond Earth orbit and set the foundation for interplanetary commerce.”

“We’re excited to launch DOGE-1 to the Moon!” Ochinero said.

A Falcon 9 rocket launches the Transporter-1 mission in January 2021.

SpaceX

Musk previously announced the company’s plans, albeit in a tweet on April Fool’s Day.

“SpaceX is going to put a literal Dogecoin on the literal moon,” Musk wrote.

The DOGE-1 mission comes after Musk, the self-proclaimed “Dogefather,” made his debut as host of “Saturday Night Live.” The price of dogecoin plunged during his appearance, falling below 50 cents, despite his references to the cryptocurrency.

For SpaceX, the announcement also comes on the day the company set a new record for its Falcon 9 series of rockets. After launching another batch of Starlink satellites into orbit, SpaceX landed the Falcon 9 rocket’s booster for a 10th time — a benchmark Musk has previously described as key in the company’s progress of reusing its rockets.

“It’s designed to do 10 or more flights with no refurbishment between each flight,” Musk told reporters in May 2018.

“We believe that the [Falcon 9] boosters are capable of on the order of at least 100 flights before being retired. Maybe more.”

A Falcon 9 rocket booster lands after launching the Sentinel-6 mission.

SpaceX

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As Dogecoin Rally Mutes, ‘Cheaper’ Ethereum, Bitcoin Look-Alikes Stike Massive Gains

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Dogecoin (DOGE) traded nearly 17% lower on Thursday night at press time as the cryptocurrency took a breather from its recent upwards march, but Ethereum Classic (ETC) and Bitcoin Diamond (BCD) charted a different course.

What Happened: DOGE traded 17.10% lower at $0.53 ahead of Tesla Inc (NASDAQ:TSLA) CEO Elon Musk’s scheduled appearance on “Saturday Night Live.”

Musk promised on social media this week that he would “definitely” touch on “Summin about The DOGEFATHER” on the variety show.

Still, the Shiba Inu-themed cryptocurrency is up 71.69% over a seven-day trailing period, but the rise of DOGE has been eclipsed by others such as ETC and BCD.

See Also: How to Buy Dogecoin (DOGE)

ETC has risen 288.47% over the period of seven days, while BCD has risen 200.1%. At press time, ETC traded 36.08% higher at $128.65 and BCD was up 79.82% at $6.76.

ETC reached an all-time high of $176.16 on Thursday and has declined 24.75% from those levels.

Why It Matters: Ethereum Classic emerged as a result of a hard fork of the Ethereum (ETH) blockchain in 2016. Bitcoin Diamond is a fork of Bitcoin (BTC) that took place in 2017.

See Also: Why Is Ethereum Classic Surging, How Is It Different From Ethereum?

ETH traded 0.98% lower at $3,456.75 at press time, while BTC traded 1.3% lower at $56,292.17 at press time.

ETC’s year-to-date gains have outpaced those of both BTC and ETH and it has captured the attention of social media investors.

Synergia Capital’s head of research, Denis Vinokourov, said the appreciation in ETC “appears to be dominated by ‘cheaper’ Ethereum play and retail flow that has pushed DOGE to sky-high levels,”  according to CoinDesk.

There is a potential for investors to confuse various forks of Bitcoin and Ethereum. Recently a fork of Bitcoin — Bitcoin Gold (BTG) — may have appreciated because of its ticker’s similarity with a Bitcoin fund.

Read Next: Could Elon Musk’s SNL Hosting Tank Dogecoin Price With Profit-Booking?

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