Tag Archives: affordability

Business

Dow Jones Dives On Jobless Claims, GDP; CarMax Plunges On ‘Vehicle Affordability Issues’

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The Dow Jones Industrial Average dived more than 400 points Thursday in the wake of first-time jobless claims and another estimate for third-quarter gross domestic product. Chip stocks came under pressure after weak quarterly results from Micron Technology. And CarMax plunged as it reported consumers are starting to balk at car prices.




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The Labor Department said Thursday that initial jobless claims rose to 216,000, below estimates for a rise to 225,000 vs. 211,000 in the prior week. Also, the Commerce Department reported another estimate of third-quarter GDP came in stronger than expected. This third estimate showed growth of 3.2% vs. the second estimate’s 2.9%.

On Friday, investors will shift their attention to more inflation data, with the release of November’s personal consumption expenditures figures.

Micron Technology (MU) dropped more than 3% Thursday. Late Wednesday, the memory-chip maker missed estimates for its fiscal first quarter amid a cyclical downturn. The chip industry bellwether also predicted current-quarter results that were far below analyst views, sending chip stocks to broad early losses.

CarMax (KMX) careened 8% lower, after management said inflation and rising interest rates led to “vehicle affordability issues.” The company fell far short of third-quarter earnings estimates.

Chinese stocks were strong outperformers Thursday morning, as Hong Kong’s Hang Seng Index surged nearly 3% on pledges for new growth initiatives and some easing of international tension. Alibaba (BABA) rose nearly 1%, while JD.com (JD) was unchanged. Pinduoduo (PDD) inched lower.

Electric-vehicle giant Tesla (TSLA) dropped more than 3% Thursday. Dow Jones energy giant Chevron (CVX) fell 0.6% Thursday morning, as U.S. oil prices continue to rise. Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) traded lower after today’s stock market open.

IBD Leaderboard stock Neurocrine Biosciences (NBIX), KLA (KLAC), O’Reilly Auto Parts (ORLY) and Texas Roadhouse (TXRH) — as well as Dow Jones names Amgen (AMGN), Caterpillar (CAT) and Home Depot (HD) — are among the top stocks to consider for investor watchlists. Keep in mind the recent market weakness should keep investors on the defensive.

Neurocrine and Texas Roadhouse are IBD Leaderboard stocks. Caterpillar was a recent IBD Stock Of The Day company.

IBD’s latest newsletter MarketDiem gives you actionable ideas for stocks, options and crypto right in your inbox

Dow Jones Today: Oil Prices, Treasury Yields

After Thursday’s opening bell, the Dow Jones Industrial Average moved down 1.3%, while the S&P 500 fell 1.6%. The tech-heavy Nasdaq composite lost 2.2% in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1.8% and the SPDR S&P 500 ETF (SPY) moved down 1.3% early Thursday.

The 10-year Treasury yield ticked lower to 3.67% Thursday morning, on pace to snap a three-day win streak.

Meanwhile, U.S. oil prices traded up nearly 2% Thursday, as West Texas Intermediate futures rose to almost $80 a barrel in morning trade.

Stock Market Rally Under Pressure

On Wednesday, the stock market posted a strong performance, with the Dow Jones Industrial Average rallying 1.6%. The S&P 500 and Nasdaq composite both rose 1.5%.

Wednesday’s The Big Picture column commented, “Meanwhile, the new rally attempt faces another inflation data test on Friday. Before the stock market opens, the last traders manning equity desks across the country ahead of the three-day Christmas holiday will be eyeing closely the November personal consumption expenditures figures.”

Now is an important time to read IBD’s The Big Picture column amid the ongoing stock market volatility.

Five Dow Jones Stocks To Buy And Watch Now

Dow Jones Stocks To Watch: Amgen, Caterpillar, Home Depot

Drugmaker Amgen is building a new flat base following a big advance into the middle of November. But shares are below their 50-day line after sharp losses in recent weeks. For now, the correct buy point is 296.77, but the stock needs to decisively retake its 50-day first. AMGN stock traded down 0.8% Thursday.

Dow Jones member Caterpillar broke out past a 239.95 buy point in a flat base, according to IBD MarketSmith pattern recognition, during Wednesday’s 2.8% breakout move. Bullishly, the stock’s relative strength line, a key technical indicator, hit a new high. CAT stock lost 1.1% Thursday.

CAT stock shows a strong 97 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.

Home improvement retailer Home Depot is about 4% below a cup-with-handle base’s 329.77 buy point after reversing last week’s breakout move. HD stock traded down 1.6% Thursday morning.

4 Top Growth Stocks To Watch In The Current Stock Market Rally

Top Stocks To Watch: KLA, Neurocrine, O’Reilly, Texas Roadhouse

Chip equipment leader KLA reclaimed its cup-with-handle’s 392.60 entry during Wednesday’s 2.8% advance. KLA shares traded down 3.9% Thursday.

IBD Leaderboard stock Neurocrine rallied for a fourth straight session Wednesday, gaining 1% and continuing to rebound from support at its 50-day level. A strong rebound is bullish for the stock’s immediate prospects and would likely lead to the formation of a new base. NBIX stock added 0.4% Thursday.

O’Reilly Auto Parts is also finding much-needed support at its 50-day line this week and remains squarely above a 750.98 flat-base entry. A big rebound off the 50-day line could bring a follow-on entry point, but the market uptrend is under pressure right now, which increases the risk of buying stocks. ORLY shares dipped 1% Thursday.

Texas Roadhouse shows a new buy point at 101.85, but is now consolidating below its 50-day line. The IBD Leaderboard stock will look to recover that key benchmark over the coming days. TXRH stock traded down 1.1% Thursday morning.

Stocks To Watch

These are five top stocks to watch in today’s stock market, including three Dow Jones leaders.

Company Name Symbol Correct Buy Point Type Of Base
KLA (KLAC) 392.60 Cup with handle
Texas Roadhouse (TXRH) 101.85 Flat base
Caterpillar (CAT) 239.95 Flat base
Home Depot (HD) 329.77 Cup with handle
Amgen (AMGN) 296.77 Flat base
Source: IBD Data As Of Dec. 21, 2022

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla Stock

Tesla stock declined 0.2% Wednesday, extending a losing streak to four sessions and hitting another 52-week low. Shares lost more than 3% Thursday morning, marking a fresh 52-week low at 132.28.

On Wednesday, TSLA stock hit a new 52-week low, trading as low as 135.89. Shares closed about 66% off their 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares jumped 2.4% Wednesday, snapping a five-day losing streak. The stock remains near its 52-week low, which was set on June 16 at 129.04. The stock is around 26% off its 52-week high. Shares traded down 1.5% Thursday.

Microsoft rose 1.1% Wednesday, rising for a second straight day and moving further above their 50-day line. The software giant remains about 30% off its 52-week high. MSFT stock moved down 1.6% early Thursday.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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Business

Mortgage rates jump as home affordability drops

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Check out what’s clicking on FoxBusiness.com.

U.S. mortgage rates are up again after two straight weeks of declines, as the cost of homeownership continues to price would-be buyers out of the housing market.

That’s causing some potential buyers to back out of deals, lessening competition and increasing the number of homes available for sale.

Ticker Security Last Change Change %
HOUS ANYWHERE REAL ESTATE INC. 9.73 -0.59 -5.72%
RDFN REDFIN CORP. 8.43 -0.10 -1.17%
RMAX RE/MAX HOLDINGS INC. 23.79 -0.28 -1.16%

Freddie Mac’s latest Primary Mortgage Market Survey released Thursday shows the average rate for a 30-year fixed-rate mortgage is now at 5.51%, up from 5.3% last week. Last year at this time, the rate for America’s most popular mortgage product averaged 2.88%.

A new home for sale in Madison, Ga.  ((AP Photo/John Bazemore, File) / AP Newsroom)

The average for a 15-year fixed-rate note is also up, climbing to 4.67% from 4.45% a week ago. For the same week in 2021, the 15-year rate sat at 2.22%.

“Mortgage rates are volatile as economic growth slows due to fiscal and monetary drags,” said Sam Khater, Freddie Mac’s chief economist. “With rates the highest in over a decade, home prices at escalated levels, and inflation continuing to impact consumers, affordability remains the main obstacle to homeownership for many Americans.”

INVESTORS SHOULD ‘BUCKLE UP’ FOR LONG SLOWDOWN: INVESTMENT STRATEGIST

According data from the Mortgage Bankers Association, the average purchase loan size has retreated from the record high of $460,000 reached in March, dropping to $415,000 for the week ending July 8.

A home for sale on Oak Street in Patchogue, New York (Steve Pfost/Newsday RM via Getty Images / Getty Images)

Meantime demand for mortgage applications has fallen for two weeks in a row. It’s the latest sign the housing market is cooling as Americans grapple with 40-year-high inflation squeezing their budgets and rising interest rates inflating the cost their monthly mortgage payment.

An increasing number of would-be buyers are also getting jitters and backing out of deals.

US FOOD BANKS SEE LONG LINES, INCREASED DEMAND

Last month, home sale cancellations hit their highest rate since the start of the pandemic, with roughly 60,000 home purchase agreements falling through according to an analysis by Redfin.

“When mortgage rates shot up to almost 6% in June, we saw a number of buyers back out of deals,” Lindsay Garcia, a Redfin real estate agent in Miami, said. “Some had to bow out because they could no longer get a loan due to the jump in rates. Buyers are also more skittish than usual due to economic uncertainty.”

A man walks past open house signs in front of condominiums for sale in Santa Monica, California (REUTERS/Lucy Nicholson / Reuters Photos)

Redfin’s chief economist, Daryl Fairweather, said in a statement Thursday that the drop in demand is already here, pointing to a new report by the real estate brokerage showing the number of homes for sale nationwide increased last month for the first time in three years.

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“The country’s economic woes have already cooled the housing market, and they’re likely to continue dampening demand,” Fairweather said. “The Fed has signaled it may increase interest rates further to combat stubbornly high inflation, which could harm consumer confidence, and lower stock prices mean fewer prospective homebuyers can afford a down payment.”

He advised sellers to commit, saying, “If you decide to sell, do it quickly before demand falls further. And price carefully—this is not the time to test the waters. You’ll do more harm than good if you overprice and have to do a price reduction or take the home off the market.”

FOX Business’ Lucas Manfredi contributed to this report.

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Technology

This $280 phone is a lesson in affordability – I hope Apple and Samsung are paying attention

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You’ll probably never use a Tecno phone. Until this week, I’d never heard of the Chinese brand or its Camon line of handsets. Now, it’s unlikely I’ll forget them.

The company recently held a swanky New York City launch for its new Tecno Camon Series 19 Pro Android 12 phones even though the products won’t be for sale in the US (or the UK, for that matter). I honestly wondered what they were doing there and, more importantly, why I was there.

Tecno insisted on describing the handsets as being “designed for fashionistas.” I could not tell you what that means, but I admit to being intrigued by the design, specs, and, especially, the price.

Key specs include:

  • 6.8-inch FHD+ virtually edge-to-edge 120 Hz display
  • Drill-hole front-facing 32MP camera
  • 64 MP and 50 MP cameras on the back
  • 2X optical zoom
  • Optical Image Stabilization
  • 5,000 mAh battery
  • Fingerprint reader
  • Face unlocking
  • Some nifty AI-infused photo tricks
  • a 3.5mm headphone jack (!)
  • A power brick, cable, and earbuds (!!)

It’s also a surprisingly attractive phone. There’s a fingerprint-rejecting diamond-coated back that looks and feels lovely. The dual circle camera array (which houses three cameras – there is a 2MP bokeh-assisting lens), is large but elegant, its premium looks assisted by its crystal glass covering. The chassis is only slightly thicker than an iPhone 13 Pro Max, but the phone feels considerably lighter.

The Camon 19 Pro comes will all this (and more) for $280. That’s a phone you could pay off in the space of five or six months (if you pay around $50 a month). The Camon Series 19 Pro 5G starts at just $320. That’s, on both phones, with 128 GB of storage and 8GB of RAM.

To put that in perspective, the cheapest iPhone you can buy is the $429 Apple iPhone SE, which has just 64 GB of storage.

(Image credit: Future / Lance Ulanoff)

There’s a catch

There are, of course, huge caveats, the biggest one being global availability. These Tecno phones are available in Africa, Latin America, the Middle East, Southeast Asia, and Southern Asia, but not, as I noted earlier, in the US or Europe. Pricing might also vary and the $280 and $320 Tecno offered is still just an “estimate” for my market.

There are numerous limits often associated with budget phones like no under-the-screen fingerprint reader. Instead, the power/wake button doubles as an effective fingerprint reader. The screen is still LCD and not OLED. There’s no reported IP rating (maybe keep it away from deep puddles). It doesn’t offer wireless charging.

Then there’s the mobile CPU, a MediaTek Helio G96, which is probably equivalent to a Qualcomm Snapdragon 765G. Its benchmark numbers aren’t even in the same neighborhood as, say, an Apple A15 Bionic or a Snapdragon 8 Gen 1.

So, when I unexpectedly walked out of the event with a review unit in hand and decided to spend a day or so with it, I tried to level-set my expectations.

For the most part, though, this budget device exceeded them.

(Image credit: Future / Lance Ulanoff)

Not bad at all

As I mentioned it’s an attractive big-screen phone with a vibrant display that, naturally, looks excellent indoors. Outside is a different matter. It struggled in bright light, but I could still see well enough to use its camera and rather rich settings to take a variety of shots. Everything from standard to 2x telephoto, and from Portrait to slow motion looked quite good. Even low-light and night shots were decent (nothing would qualify as remarkable). There’s no wide-angle lens, let alone ultra-wide but the included lenses captured sharp, colorful, and accurate images.

(Image credit: Future / Lance Ulanoff)

Portrait mode from the rear camera is good (the front camera had more artifacts), though you can’t adjust the level of bokeh before or after the shot (how many people do this on their iPhone 13 or Samsung Galaxy, anyway?). There is an editing tool that lets you add and adjust a bokeh effect on any image, but it’s not directly tied to Portrait Mode photography, which is kind of silly.

The AI-powered camera and its efforts to identify objects in a scene were entertaining. At one point, I pointed the phone at my hand, and it came up with “Pet.”

There are so many image manipulation options that you may never find or use them all. The set for body manipulation is, at best, problematic. It offers to slim the waistline, head, shoulder, slim and lengthen legs, “plump butt,” along with other cosmetic alterations. Perhaps this is what Techno meant by a phone for “fashionistas.”

It was, to be fair, hard to find those features and the phone certainly doesn’t push them. Still, it’s weird that they’re there.

Punching above its weight

For a sub-$300 phone, the Tecno Camon 19 Pro is quite the performer. It played taxing games like Asphalt 9: Legends without missing a beat. I think it might’ve been dropping a frame or two, and the audio could be richer, but it was still an enjoyable experience.

It’s an effective productivity platform for browsing and file management, and I do love the alphabetically ordered app list (Apple, Samsung, please do this).

That 5,000 mAh battery is, by the way, an all-day champ.

Basically, this is an above-average phone at a ridiculously good price.

Will it ever arrive in the US and UK? I don’t know and Tecno offered no guidance. I’m not sure it matters. What the Tecno Camon 19 Pro demonstrates for me is that all phone manufacturers can do better on the affordability front. We’re paying as much as $999 for powerful big-screen phones that probably do far more than we’ll ever need them to (at least for most of us).

The Camon 19 Pro sets a nice example for the possibilities of budget. I think it’s time Apple, Samsung, and others answer in kind.

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Science

NASA has begun a study of the SLS rocket’s affordability

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Enlarge / Artist concept of the Space Launch System.

NASA is conducting an internal review of the Space Launch System rocket’s affordability, two sources have told Ars Technica.

Concerned by the program’s outsized costs, the NASA transition team appointed by President Joe Biden initiated the study. The analysis is being led by Paul McConnaughey, a former deputy center director of NASA’s Marshall Space Flight Center in Huntsville, as well as its chief engineer.

The SLS rocket program has been managed by Marshall for more than a decade. Critics have derided it as a “jobs program” intended to retain employees at key centers, such as Alabama-based Marshall, as well as those at primary contractors such as Boeing, Northrop Grumman, and Aerojet Rocketdyne. Such criticism has been bolstered by frequent schedule delays—the SLS was originally due to launch in 2016, and the rocket will now launch no sooner than 2022—as well as cost overruns.

For now, costs seem to be the driving factor behind the White House’s concerns. With a maximum cadence of one launch per year, the SLS rocket is expected to cost more than $2 billion per flight, and that is on top of the $20 billion NASA has already spent developing the vehicle and its ground systems. Some of the incoming officials do not believe the Artemis Moon Program is sustainable with such launch costs.

Cost concerns

McConnaughey is leading the study for Kathy Lueders, NASA’s chief of human spaceflight. Even before the study’s initiation, McConnaughey had been pushing for the SLS program to become more cost-effective. One goal of this analysis is to find ways for the large NASA rocket to compete effectively with privately developed rockets as part of the agency’s Artemis Moon program.

For example, although SpaceX’s Falcon Heavy rocket does not have as much lift capacity as the SLS rocket, it has the advantage of being already in use and costing about one-tenth as much per flight. Blue Origin and United Launch Alliance are also developing heavy-lift rockets that are intended to deliver components of a Human Landing System to lunar orbit.

Perhaps most significantly, SpaceX is continuing a flight test campaign of its Starship Launch System, which may make its first orbital flight in the next 12 months. This is a launch vehicle that could potentially out-lift the SLS rocket, be reusable, and cost a fraction of the price. If SpaceX succeeds in getting Starship into orbit, there would be little technical justification for continuing government subsidization of the less capable SLS booster, which is expendable and costs much, much more.

Proponents of the SLS rocket are not blind to this. Some believe SpaceX will not succeed with its Starship program, and indeed myriad technical challenges remain. Others think NASA could find ways of making the SLS rocket more competitive, and that is one point of this study.

Another reason for the new analysis, however, is to assess whether NASA really needs the SLS rocket at all as part of the Artemis Program. Already, companies are planning to deliver the lunar lander to the Moon with private rockets. The main job left for the SLS rocket is launching Orion, with crew, to the Moon. Launching Orion may also be doable with private rockets, or the crew could simply launch on SpaceX’s Starship, obviating the need for Orion itself.

Commercial alternatives

Although the Biden administration has committed to continuing the Artemis Program started under President Donald Trump, it has other priorities for the space agency, particularly ramping up Earth science activities to better understand climate change. If the Office of Management and Budget no longer needs to spend $3 billion annually to “develop” the SLS rocket and its ground systems, the White House will at least look at the possibility.

One initial step may involve slowing or ending work on an upgrade for the SLS rocket, sources indicated. After NASA completes the first iteration of the Space Launch System rocket, the plan is to upgrade it to “Block 1B,” the main part of which is an upgraded second stage. This piece of hardware is known as the Exploration Upper Stage. In the FY 2021 budget bill, Congress provided $400 million for development of this stage.

However, some senior NASA officials would like to at least pause work on this upper stage. To them, it is premature to work on an upgraded rocket while the first version of the SLS rocket is yet unproven, especially if Biden space officials determine the SLS rocket will only play a limited role in future exploration plans. One source said Biden White House may seek to fly SLS only a handful of times, halt work on the Exploration Upper Stage, and plan the future of Artemis around commercial launch vehicles.

All of this remains in flux, however, and the US Congress will have a big say in whatever the future of NASA’s deep-space exploration programs hold.

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