Tag Archives: Musk

Elon Musk grills Robinhood CEO on Clubhouse app

Yahoo Finance’s Julia La Roche joined Yahoo Finance Live to discuss Elon Musk grilling Robinhood’s CEO on the audio app Clubhouse.

Video Transcript

[MUSIC PLAYING]

ADAM SHAPIRO: We’ve been talking a lot about GameStop and the phenomenon of retail investors being able to stand up to big money. Julia La Roche knows a lot of people on both sides of that equation. We bring her into the stream, because even Elon Musk is giving Robinhood a grilling. What do you got for us, Julia?

JULIA LA ROCHE: Well, last night– of course, if you heard about Clubhouse, it’s the– it’s the voice chat app that is all the rage right now in Silicon Valley. Elon Musk joined one of those rooms last night, and it was basically a packed house, so packed that they had overflow rooms. You’ve seen some of these streams leak online.

And the real surprise was at the very end, Elon said, like, hey, do you guys want to hear from the Robinhood CEO explain what really happened? So that’s how they kind of kicked off this conversation. And he was basically like, hey, man, spill the beans, like what really happened? And he grilled him around things like– like was this shady? So for 14 minutes, the Robinhood CEO had to explain exactly what happened, especially with the clearing house side of the equation.

So some of the things that came up during that conversation was that Vlad Tenev, who, by the way, was on our air just on Friday explaining a lot of this to begin with, was sharing with Elon Musk that he– look, he got this message at 3:30 in the morning Pacific time on Thursday from their operations team from the National Securities Clearing Corporation that they needed to put $3 billion up in deposit. But eventually, he had negotiated that down to $700 million.

But yeah, basically, he kept on– Musk kept on pressing him like, look, the whole thing on– well, you saw the order flow and is something shady going on here, in which he has refuted a lot of these conspiracy theories that have been floating around. But really fascinating conversation. We’ve talked about it really capturing the popular zeitgeist. And here you have a major CEO, the world’s richest man, also someone who’s been a critic of short selling, giving the Robinhood CEO a grilling.

SEANA SMITH: Yeah, Julia, there are so many interesting lines coming out of this discussion. The one thing that stood out to me, and you mentioned this in your article, was kind of going off what you were just saying with the National Security and Clearing Corporation, the NSCC, Musk asked kind of who controlled it or who was behind it. And Tenev actually defended the group’s action, which stood out to me and I thought was– I don’t know if I would necessarily say it was surprising, but caught me off guard a little bit.

JULIA LA ROCHE: Yeah, it’s interesting because I think– I was trying to look into this. It’s kind of, like, a quasi-regulator self kind of governing body. You have these in finance. And he was like, look, their request was reasonable from– from the NSCC.

But he was also– Musk was saying, well, you know, if it’s not really a government regulatory agency but it’s also a consortium, like who’s part of this? Who gets to be part of it? But that’s kind of unclear at this point. And he kind of said to Musk, look, you’re kind of getting into those conspiracy theories that have been floating around there. Seana.

ADAM SHAPIRO: Actually, it’s Adam. Julia La Roche, thank you very much, an evacuee–

JULIA LA ROCHE: Adam.

ADAM SHAPIRO: –from a blizzard here in Manhattan, enjoying the sunny shores of South Florida. We’re not done, though, talking about what’s going on with GameStop. And we’ve actually heard quite a bit about this earlier today. Chester Spatt, former SEC chief economist joined Yahoo Finance Live to discuss how the SEC and regulators should be responding to Robinhood and other stock market apps restricting trades for certain stock.

CHESTER SPATT: Well, the SEC indicated late last week that it’s monitoring developments. And I think that’s extremely important in the current situation. Some of the issues that you were just chatting about, namely the capital needs of– of Robinhood and the necessity– and the possible necessity of the trading limits that they imposed are certainly something the commission staff ought to be getting a handle on, understanding why– what was the nature of the capital before this happened of Robinhood? Was it inadequately capital– capitalized?

What do the restrictions that they’ve imposed mean, for example, restricting– I’m not sure if I understand it, but restricting the gaming– gaming stock to one share. What sort of bring– what sort of brings about that particular restriction? I think these are all important to understand. And the regulator, at the same time, you know, may be interested in understanding whether the Redditors manipulated the markets to produce an artificial price. It seems to me all issues are on the table.

But these are issues for the staff, for them to explore. At this point, they don’t seem to me to rise to the level of lawmakers already trying to do an autopsy. I think first, we have to let the SEC staff do an autopsy. And only later can lawmakers– should lawmakers be debating possible changes in the regulatory framework. First, let’s see what our regulatory framework did, and why did it do that, and to what extent were the actions of the market participants appropriate?

MYLES UDLAND: And you know, Chester, you brought up the issue of market manipulation. I’d love it if you could maybe briefly outline how the SEC goes about trying to define when a security has been manipulated. Because I think there’s perhaps a popular misunderstanding that discussing a specific stock constitutes manipulation of that stock.

CHESTER SPATT: Well, I certainly– I certainly wouldn’t– wouldn’t think that discussing a particular stock would be manipulation. It’s been a hard– it’s been a difficult issue for the commission to define. I think of manipulation in terms of attempts to create an artificial price. But I don’t– I don’t think just communication, for example, that this stock is undervalued because there’s a potential for do a short squeeze.

Originally published

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Elon Musk: Neuralink enabled monkey to ‘play video games using his mind’

  • Elon Musk’s Neuralink implanted a chip that enabled a monkey to “play video games using his mind.”
  • Musk claimed as much in a wide-ranging interview on Clubhouse on Sunday night.
  • Neuralink is focused on human-computer interfaces for artificial intelligence in people.
  • Visit Business Insider’s homepage for more stories.

Elon Musk’s human-computer-interface company, Neuralink, seems to be off to a strong start.

“We’ve already got a monkey with a wireless implant in their skull, and the tiny wires, who can play video games using his mind,” Musk said in an interview on the “Good Time Show” on the app Clubhouse on Sunday night.

“One of the things we’re trying to figure out is can we have the monkeys play mind ‘Pong’ with each other,” he said. “That would be pretty cool.”

Neuralink has been testing neural interfaces on animals for years. In a video released last year, Neuralink demonstrated its work on a pig named Gertrude.

The Neuralink device in a pig’s brain transmitted data during a demo last year as the pig snuffled around.

Neuralink/YouTube


In that video, Neuralink demonstrated its ability to record and try to predict actions based on a wired chip implanted in Gertrude’s brain.

But Musk said the video-game-playing monkey got a wireless chip that enabled it to control an electronic interface with its mind only.

“He’s not uncomfortable, and he doesn’t look weird,” Musk said. “And you can’t even see where the neural implant went in.”

The wireless bit is particularly important, as it could eliminate the potential for infection that comes with wires protruding from organic material.

“If you can do experiments with something that doesn’t involve wires coming through the skin, that’s going to improve the welfare of animals,” Andrew Jackson, a neuroscience professor at the University of Newcastle, told Insider last year.

Listen to the full interview here:

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Elon Musk says bitcoin is ‘on the verge of getting broad acceptance’

Tesla CEO Elon Musk has said that bitcoin is a “good thing” and that it is set to get mainstream attention.

“I think bitcoin is really on the verge of getting broad acceptance by sort of the conventional finance people,” said Musk on Sunday night during a Clubhouse chat session. “I don’t have a strong opinion on other cryptocurrencies.”

Musk went on to say that many of his friends have convinced him to buy bitcoin in the past, but he is “late to the party.”

The billionaire CEO added that he should have bought some bitcoin in 2013 when one of his friends introduced the cryptocurrency at the time.

Musk also briefly talked about Dogecoin, the meme-coin he has tweeted about in the past, saying that he “occasionally” makes “jokes about Dogecoin.”

“They are really just meant to be jokes, but you know Dogecoin was made as a joke to make fun of cryptocurrencies obviously, but fate loves irony and often as a friend of mine says that the most ironic outcome or I’d say the most entertaining outcome and the most ironic outcome would be that Dogecoin becomes the currency of earth in the future.”

Musk’s comments come three days after he added bitcoin to his Twitter bio and posted, “In retrospect, it was inevitable,” possibly meaning that the bitcoin mention was sure to happen.

Bitcoin went up by about 15% on Friday after Musk’s mention and is currently trading up by about 2% at $33,800.

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Elon Musk explains how self-driving robotaxis justify Tesla valuation

Elon Musk, founder of SpaceX and chief executive officer of Tesla Inc., arrives at the Axel Springer Award ceremony in Berlin, Germany, on Tuesday, Dec. 1, 2020.

Johannessen-Koppitz | Bloomberg | Getty Images

Don’t count Elon Musk among the investors who think Tesla is overvalued, even with the stock up almost 700% in the past year and the company valued at 213 times projected 2021 earnings, according to FactSet.

In the car maker’s fourth-quarter earnings call on Wednesday, Tesla’s CEO said there is a “roadmap to potentially justify” its market cap, which has topped $800 billion, making it the fifth-most valuable U.S. company. Musk is now the world’s wealthiest person, with a net worth over $200 billion.

Musk’s valuation math goes like this: Assume the company soon reaches $50 billion to $60 billion in annual car sales (the company generated $9.31 billion in automotive revenue in Q4 and said that vehicle deliveries would increase an average of 50% a year going forward). As Tesla’s self-driving technology continues to improve, those vehicles will become self-driving robotaxis, allowing usage to go from 12 hours a week to 60 hours a week. Tesla could charge additional fees for those robotaxis, allowing the company to generate much more revenue per car. Basically, it would be like bringing software economics to the manufacturing-intensive car business.

Musk also announced that Tesla’s Full Self Driving package will be available on a subscription basis starting in Q1, rather than as a one-time $10,000 add-on, which will allow Tesla to begin adding recurring revenue as it works on improving its self-driving technology.

Even if usage only doubles, a $1 trillion valuation can make sense, according to Musk.

“If you made $50 billion worth of cars, it would be like having $50 billion of incremental profit, basically because it’s just software,” Musk said in the introductory part of the call. Based on that formula, Musk says a multiple of 20 times earnings would lead to $1 trillion in market cap — “and the company’s still in high-growth mode.”

Less than nine months ago, Musk had a very different perspective on the company’s valuation. In a tweet on May 1, he said “Tesla stock price is too high,” a comment that sent the shares down 10%. Since then, the company’s market cap has jumped by more than 450%.

It’s possible that investors are already presuming Tesla’s cars will eventually turn into revenue-generating robotaxis. But the company isn’t close to having those capabilities yet, and Musk has a history of over-promising when it comes to technological innovation.

For instance, when Tesla began to discuss self-driving technology in 2016, Musk said the company would complete a hands-free trip across the U.S. by late 2017. The company has yet to complete that mission.

Currently, Tesla’s Full Self Driving features include Smart Summon, which lets a driver call their Tesla to roll out from a parking spot to where they are standing, and Navigate on Autopilot, which can pilot the car from a highway on-ramp to an off-ramp, making necessary lane changes along the way.

But despite its name, the Full Self Driving package still requires drivers to keep their hands on the steering wheel and remain attentive at all times. A Munich court ruled last year that Tesla misled consumers on the abilities of its automated driving systems, and banned the company from including “full potential for autonomous driving” and “Autopilot inclusive” in its advertising materials.

While Tesla has missed many of its own projections for self-driving technology, Musk continues to insist that it’s coming. “I really do not see any obstacles here,” he told an analyst on the call who asked about the company’s progress.

Tesla shares fell 5.5% in extended trading on Wednesday after the company reported earnings that missed analysts’ estimates, even as revenue was better than expected.

WATCH: Tesla misses on earnings

Nominations are open for the 2021 CNBC Disruptor 50, a list of private start-ups using breakthrough technology to become the next generation of great public companies. Submit by Friday, Feb. 12, at 3 pm EST.

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Elon Musk and Jeff Bezos, World’s Richest, Shade Each Other Over…

The statement followed a tweet from Musk, the richest person according to data compiled by Bloomberg.

The world’s two richest men are duking it out before U.S. regulators over celestial real estate for their satellite fleets.

Elon Musk’s SpaceX has asked the Federal Communications Commission for permission to operate Starlink communications satellites at a lower orbit than first planned.

Jeff Bezos’s Amazon.com Inc. says the move would risk interference and collisions with its planned Kuiper satellites, which like Starlink are designed to beam internet service from space.

A dispute that would normally be confined to regulatory filings is spilling into public view, in a spat that showcases the large personalities involved as billionaires chase dreams in the sky.

“It is SpaceX’s proposed changes that would hamstring competition among satellite systems,” Amazon tweeted Tuesday from its official news account. “It is clearly in SpaceX’s interest to smother competition in the cradle if they can, but it is certainly not in the public’s interest.”

Jeff Bezos’s Amazon.com Inc. says the move would risk interference and collisions with its planned Kuiper satellites, which like Starlink are designed to beam internet service from space.

The statement followed a tweet from Musk, the richest person according to data compiled by Bloomberg.

“It does not serve the public to hamstring Starlink today for an Amazon satellite system that is at best several years away from operation,” Musk said in a tweeted reply to coverage by CNBC journalist Michael Sheetz.

Musk’s Space Exploration Technologies Corp. has launched more than 1,000 satellites for its Starlink internet service and is signing up early customers in the U.S., U.K. and Canada. Amazon last year won FCC permission for a fleet of 3,236 satellites and has yet to launch any.

Amazon earlier urged the FCC to reject SpaceX’s request for lower orbits. It said the change would put SpaceX satellites in the midst of the Kuiper System orbits, according to filings at the agency.

SpaceX pushed back in calls to the FCC, saying its plans wouldn’t increase interference for what it termed Amazon’s “still nascent plans.”

A lower orbit allows quicker internet service because the signal doesn’t travel as far. SpaceX told the FCC that having the satellites closer to Earth lessens the risk of space debris because they would fall out of orbit more quickly than higher spacecraft.

SpaceX eventually plans to operate some 12,000 satellites and has won FCC authorization for about 4,400 birds, including 1,584 at 550 kilometers — where its satellites currently orbit. The company is seeking permission to stage another 2,824 satellites at the same approximate altitude, rather than twice as high as originally proposed.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Dow Jones Futures: GME Stock Rockets On Elon Musk Tweet; Microsoft, AMD, Palantir Are Key Movers

Dow Jones futures and S&P 500 futures rose slightly late Tuesday, while Nasdaq futures rose solidly, lifted by MSFT stock. The stock market rally had fractional losses Tuesday on the surface, but many leaders had a tough session. Microsoft (MSFT) and Advanced Micro Devices (AMD) earnings late Tuesday, while Palantir Technologies (PLTR) held its much-anticipated Demo Day.




X



Apple (AAPL), and Tesla stock are due Wednesday night.

Tesla CEO Elon Musk kept GameStop (GME) frenzy going overnight, tweeting out “Gamestonk!!” in reference to the Reddit-led mass short squeeze. GME stock skyrocketed more than 50% overnight in still-massive trade. That’s after soaring 93% to 147.98 in Tuesday’s session, a record close. GME stock hit an intraday all-time high of 159.18 on Monday. GameStop is up 685% already this year.

Bed Bath & Beyond (BBBY) and Dillard’s (DDS), two other short-squeeze plays, jumped 20% Tuesday. BBBY stock kept running overnight.

While tech giants and Tesla stock generally had modest gains, providing support for the major indexes. That masked some losses among leading chip, software, genomics and mining and materials firms.


10 Heavily Shorted Stocks Set For GameStop-Like ‘Squeeze’ Rallies


Key Earnings

Microsoft earnings and sales easily beat views. Microsoft stock rose overnight, signaling a breakout after flirting with a buy point in Tuesday’s session. Amazon.com (AMZN) rose slightly on the Microsoft’s cloud-driven quarter, with AMZN stock near possible early entries.

AMD earnings also easily beat, with the chipmaker also guiding higher. AMD stock tilted lower overnight after some up and down action.

Palantir Demo Day

Palantir Technologies held its much-anticipated Demo Day, where it showcased what its technology could do, including supply chain and data integration. PLTR stock fell modestly overnight. Palantir stock closed down 2.4% to 35.37, just out of range of a 33.60 buy point. But that followed Friday’s 25% spike and Monday’s 11% jump.

Apple, Tesla Earnings On Tap

Looking ahead to Wednesday, Apple stock, Tesla (TSLA), Facebook (FB) and ServiceNow (NOW) are among those reporting. Apple and Tesla stock are in buy range. Facebook stock has crossed over a very early entry. ServiceNow stock is finding support at its 50-day line in a new flat base.

Also, the Federal Reserve meeting concludes Wednesday, with a policy announcement due at 2 p.m. ET. The central bank is expected to leave interest rates and asset purchases unchanged and likely will signal that will remain so for quite some time. It may be a nonevent. Investors will look for hints — if any — about when Fed policymakers might taper bond buys down the road. Commentary about stock and other asset prices would get close attention.

Tesla stock, Apple, AMD, Microsoft, ServiceNow and Palantir stock are on IBD Leaderboard. Apple stock is on SwingTrader. Microsoft stock and ServiceNow are on IBD Long-Term Leaders. AMD and NOW stock are on IBD 50.

Dow Jones Futures Today

Dow Jones futures edged up vs. fair value. S&P 500 futures climbed 0.15%. Nasdaq 100 futures rose 0.6%. Microsoft stock is providing a lift to futures, with several other tech giants also climbing.

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 100.78 million. Covid-19 deaths topped 2.16 million.

Coronavirus cases in the U.S. have hit 25.99 million, with deaths above 434,000. New coronavirus cases, hospitalizations and even deaths have fallen sharply over the last couple of weeks, though they remain high.

The U.S. late Tuesday that it will buy another 200 million doses from Pfizer (PFE) and Moderna (MRNA). It’ll also boost coronavirus vaccine supply to the states by 20% to 10 million a week. After a rocky start, vaccinations have been averaging more than one million a day recently, with expectations that this can ramp up.

Pfizer said it can deliver 200 million doses of its coronavirus vaccine two months earlier than planned. That would be by the end of May.

Johnson & Johnson (JNJ) expects data from its final-stage coronavirus vaccine data by early next week. CFO Joseph Wolk told CNBC that he’s expecting “robust” results. The J&J Covid vaccine takes just one shot and is easier to store than the two-shot vaccines from Pfizer/BioNTech (BNTX) and Moderna. If efficacy and safety data are strong, the FDA could approve the J&J vaccine by early March.

Stock Market Rally

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 30937.89 -22.11 -0.07
S&P 500 (0S&P5) 3849.55 -5.81 -0.15
Nasdaq (0NDQC ) 13626.07 -9.92 -0.07
Russell 2000 (IWM) 213.31 -1.48 -0.69
IBD 50 (FFTY) 45.47 -0.55 -1.20
Last Update: 4:20 PM ET 1/26/2021

The stock market rally saw slim losses on the major indexes, a quiet session after Monday’s whipsaw action.

The Dow Jones Industrial Average lost about 0.1% in Tuesday’s stock market trading. The S&P 500 index dipped 0.15%. The Nasdaq composite edged down 0.1%, while the big-cap Nasdaq 100 edged higher.

Apple and Microsoft, the two biggest megacaps and members of the Dow Jones, S&P 500 index and Nasdaq composite, provided support for the major indexes. Amazon stock, Facebook, Tesla and AMD also helped.

Growth Stocks Struggle

Despite the solid performance in tech giants and the continued mania in GME stock and other speculative names, leading stocks tended to lag somewhat.

Beneath the surface, many chip, software and genomics stocks suffered significant losses, though it was bloodletting, not a bloodbath.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 1.2%, while the Innovator IBD Breakout Opportunities ETF (BOUT) retreated 2.3%. The iShares Expanded Tech-Software Sector ETF (IGV) sank 0.6%, with MSFT stock and ServiceNow notable components. The VanEck Vectors Semiconductor ETF (SMH) 1.7%, with AMD stock an exception to the downward shift.

ARK Innovation ETF (ARKK) sank 3.3% and ARK Genomic Revolution ETF (ARKG) tumbled 4.9%. SPDR S&P Metals & Mining ETF (XME) pulled back 2.3%, extending losses since spiking on Jan. 6.

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

Microsoft Earnings

Microsoft earnings rose 34% to $2.03 a share in the fiscal Q2, accelerating for a second straight quarter. Revenue grew 17% to $43.08 billion, the best gain in at least two quarters. Wall Street expected Microsoft earnings of $1.64 a share on sales of $40.18 billion.

The Azure cloud-computing services saw 50% revenue growth, better than expected. Intelligent Cloud revenue, which includes Azure public cloud, server products, GitHub and enterprise services, advanced 23% to $14.60 billion also topping consensus.

Microsoft provided upbeat sales guidance on the conference call.

Microsoft stock rose 4% in overnight trade, signaling a breakout. Shares rose 1.2% to 232.33 on Tuesday. briefly clearing a 232.96 buy point, according to MarketSmith analysis. MSFT stock closed in buy range of some early entries.

Amazon stock advanced 1% in extended trade. Shares rose 1% to 3,326.13 on Tuesday, closing right around a downward-sloping trend line. Clearing that trend line would be an early entry for AMZN stock, along with 3350.75. Amazon stock has an official buy point of 3,552.35. Earnings are next week.

Apple stock and Google parent Alphabet (GOOGL) also rose about 1% overnight. Both are already in buy zones.

AMD Earnings

AMD earnings jumped 62.5% to 52 cents a share, with sales up 52% to $3.24 billion. Analysts forecast AMD earnings of 47 cents on sales of $3.02 billion.

The graphics and data center chip maker sees Q1 revenue up 79% to $3.2 billion, with full-year sales up 37%.

AMD stock initially rose in extended trade, then reversed slightly lower. Shares edged up 0.6% to 94.71 on Tuesday. That’s slightly above a buy zone from a prior base but in range from the 10-week line. Investors might want to use 99.33 as an entry from a short consolidation.

AMD rival Nvidia (NVDA) was little changed overnight.

Texas Instruments (TXN) and Maxim Integrated Products (MXIM) also beat views late Tuesday. But the two chipmakers fell modestly late.

Apple, Tesla, Facebook Earnings

Wednesday night will be busier than Tuesday, with Apple, Tesla, Facebook and ServiceNow among the big names reporting.

Apple earnings will not only have a big impact on AAPL stock, but on the broader iPhone ecosystem, notably chipmakers. Tesla earnings are important, but the focus will likely be on 2021 delivery targets and updates on the Cybertruck and two factories under construction. For the Facebook earnings report, commentary about political headwinds will be key for FB stock and other social media names. ServiceNow is the first business software pure play that has held up well at a time when many software makers have lost ground.

Apple, Tesla, Facebook and ServiceNow stock are all at or near buy points, raising the stakes. Along with Microsoft and AMD, these leaders could have a huge influence on the stock market rally direction.

Stock Market Rally Analysis

The Nasdaq is now 7.8% above its 50-day moving average, down slightly from Monday’s 8.2%.

The rule of thumb is that when the Nasdaq is more than 6% above the 50-day line, the odds of a pullback are relatively high. But, as the stock market rally has shown in recent days and many times over the past several months, the Nasdaq can keep getting more extended. But the more extended the Nasdaq gets, the higher the risk of a pullback, with greater odds that the retreat will be larger.

In late August, Apple and Tesla stock helped push the Nasdaq higher and higher, finally peaking at 11.6% above the 50-day line on Sept. 2. The Nasdaq then plunged 10% over the next three sessions, closing below the 50-day line, with further losses in the next few weeks.

Meanwhile, bullish sentiment is high, while froth is evident in GME stock and others. It’s possible that hot money, at least among retail investors, is concentrating in GME stock and other squeeze plays, moving away from a wider array of leading stocks and even “traditional” speculative names.

Margin debt is up substantially vs. a year earlier, but the increase is still well below extreme levels associated historically with foreshadowing bear markets. However, leveraged ETFs and the explosion of call options suggests that retail investors are more exposed than margin debt alone would indicate.

An extended market rally, high bullish sentiment, crazy stock moves are warning signs. But weakness in leading stocks is the first one that stings.

Sideways action or a modest pullback over a few weeks would be ideal for the stock market rally. But earnings season in the current environment seems likely to be a catalyst for big market gains or losses — or both. As always, the market is going to do what the market is going to do.

What You Should Do Now

Along with the earnings crush, risks are relatively high for leading stocks and overall market rally. Monday’s short-lived market reversal spurred some sharp losses in growth stocks. They generally fared OK before lagging Tuesday. But if the Nasdaq fell 5% in a day or 10%-15 over a week or two, the losses in many growth stocks, especially IPOs and more-speculative names, could be intense. How would your portfolio handle that action?

Continue to analyze your holdings and overall portfolio. Create a game plan for dealing with negative action in your stocks or overall market rally.

Keep in mind that despite rising warning signs, the stock market rally has been faring well overall, though leading stocks bear watching. Investors may want to be more cautious about adding exposure, sell some shares into strength and quickly cut laggards, but it’s not time to be defensive overall. However, dust off those defense plans.

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

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Barbs fly over satellite projects from Musk, Bezos

The Guardian

‘I want to go home’: Filipina domestic workers face exploitative conditions

Many of the Filipina women we interviewed across Asia, Europe and the Middle East lost jobs or had salaries cut since the pandemic – others were subjected to physical abuse ‘They’ve got no support whatsoever.’ Illustration: Susie Ang/The Guardian This story is published in partnership between the Guardian and the Fuller Project. Every morning, Rowena wakes early on the pile of blankets where she sleeps, curled up against a desk in the corner of the office she used to clean. It’s not yet 7am, but if her manager catches her alone in her pyjamas, he’ll try to grope and stroke her, as he’s tried to do several times a week for the past six months. Rowena, who is 54 and asked to be identified only by her first name, left the Philippines for Bahrain in April 2019. After she had been in the Gulf country for a year, her boss told her that due to the pandemic, he could no longer pay her monthly salary of 120 Bahraini dinar, or BHD (£240). Instead, he would provide her and the three other migrant domestic workers he employed with 10 Bahraini dinar (or £20) for food every fortnight, to be split between four. The same month, Rowena’s flight out of the country was cancelled, and she found herself trapped. In September, her employer stopped giving the women their food allowance too, leaving them with nothing. Rowena and her housemates are not alone: the pandemic has left domestic workers like them further exposed to exploitative working conditions and abuse. The Guardian has interviewed more than a dozen Filipina women across Asia, Europe and the Middle East since April. Most have lost jobs or had salaries cut by their employers since the start of this year. Others have also found themselves suddenly subjected to physical abuse. As Covid started to spread worldwide, the Philippine government organised repatriation flights from Manama to Manila. But Rowena didn’t know about them. In July, three months after her boss first stopped paying her, she wrote on the Philippine government’s Overseas Foreign Workers Help Office’s public Facebook page to ask for help, along with dozens of other Filipina women and men stranded abroad. She also applied for financial support from the Philippine department of labor and employment. Months passed by, but no one replied. “I don’t want to make trouble,” she says via a call over Facebook Messenger. “I want to go home.” ••• The Philippine government says that about one-third of its 10 million citizens overseas are women working in “elementary” jobs – a term widely interpreted as referring to domestic workers like Rowena who are paid low wages to clean homes, and cook meals and care for wealthy families under often horrendous conditions. Human Rights Watch has long described migrant domestic workers, thousands of miles away from home and hidden out of sight in strangers’ houses, as one of the world’s most vulnerable demographics. Now, nearly a year into a global pandemic, thousands of Filipina women are stranded with even fewer options to flee exploitation. According to the International Labor Organisation, there are 11.5 million migrant domestic workers worldwide. By the Philippine government’s own estimate, about one in four is a Filipina woman. International advocacy organisations believe the number would likely be higher if those who are undocumented were taken into account. Together, the women form a scattered community, the majority spread across the Middle East and East Asia, followed by Europe and the United States. Recruited by international agencies who favour English-speaking nannies and cleaners, the women are charged exorbitant fees to find work overseas. For the 60% of Filipina women who work in the Middle East, they’re also subject to the “kafala” system, which generally binds a migrant worker to their employer, resulting in the confiscation of their passports until their contracts come to an end. Maria, 43, is a single mother from the Philippines who has been working in Hong Kong since 2019. In August, her employer lost her temper after Maria (who agreed to speak on the condition of her anonymity) didn’t cook a bell pepper for the family’s baby. “She slapped me on my face, on the right side of my face with her hand, and beat me on [my] bottom [ I think] around three or four times,” she says. “I felt that I was unworthy for her.” In Singapore, Robina Navato hears similar stories daily. A domestic worker for almost 25 years, she also volunteers for the Humanitarian Organisation for Migration Economics (Home), counseling her peers across the city on their rights. At the start of the outbreak, she received calls late into the night from Filipina domestic workers trying to leave their abusive employers. “I told them that the shelter is packed with people already and we cannot accept [them],” she remembers. “So if you can hold on, for like another month, and then run away after that?” ••• The UK issues about 23,000 visas to foreign domestic workers every year, half of whom come from the Philippines, according to reports. British laws enabled their abuse before the pandemic, migrant rights advocates say. But research shows illegal, exploitative working conditions have multiplied in recent months. “They don’t have any access to public funds, or furlough schemes or anything like that. From the perspective of the state, they just don’t exist,” says Dr Ella Parry-Davies, a postdoctoral fellow at the British Academy researching the lives of Filipina domestic workers in Lebanon and the UK. “They’re really pushed to the brink of destitution.” They’re really pushed to the brink of destitution Dr Ella Parry-Davies In the first two months of the coronavirus outbreak, more than half of the Filipino migrant workers surveyed in the UK had lost their jobs, according to a report compiled in June by Dr Parry-Davies and the Kanlungan Filipino Consortium – a London-based consortium of grassroots organisations advocating for Filipino migrants’ rights. Others saw their wages drop to less than £2 an hour, less than a quarter of the UK’s statutory minimum wage. Of those who were infected by the coronavirus, one in four were too scared to ask the NHS for help in case it affected their immigration status in the future. “They’ve got no support whatsoever,” says Dr Parry-Davies, adding that the Filipina women, who clean, nanny and take care of disabled or elderly people, are essentially key workers. “They’re just completely abandoned by the nation.” In 2014, Mimi (who asked to go by a different name to avoid jeopardising her safety) arrived in west London, brought over to the UK by a European family she had previously worked for in Hong Kong. Today, she works from 8am until 8pm, Monday to Friday, taking care of two children under the age of 10, earning about £5 an hour. After finishing her day’s duties, the 52-year-old often crosses High Street Kensington and cleans a neighbour’s house from 8.30pm until one or two in the morning. Then she walks for 30 minutes back to the boarding house she shares with four other Filipina women. Her monthly rent is almost half her salary. “When I am working in the wee hours I am crying, and I am saying: ‘Why am I doing this?’” she says over the phone, late one Friday night. “I know I am being abused. But I cannot complain.” As the country moves in and out of Covid-19 lockdowns, her employers have insisted she continue working, coaching her on what to say to the police if she’s stopped on the street. Their demands have also increased: she has to disinfect the house from top to bottom, clean their three toilets every day and sanitise the kitchen. But although Mimi fears for her safety, she can’t afford to quit. The Philippine president, Rodrigo Duterte, says his administration is helping Filipino citizens stranded overseas, but such support is limited. In April, the department of labor and employment (Dole) released a one-off grant of up to 10,000 Philippine pesos (£156) for displaced foreign workers, and the department of foreign affairs (DFA) has repatriated 277,320 Filipino citizens from countries including Lebanon, Turkey and Bahrain since February. ••• Each of the women the Guardian spoke to sends the majority of her disposable income back to the Philippines. Filipina migrant workers wire back more than £26bn to support their families every year, accounting for 8.8% of the Philippines’ total GDP, according to the World Bank. Since the start of the year, unemployment in the Philippines has doubled and the pressure to send money home is greater than ever. Without Mimi’s income, her 19-year-old daughter won’t be able to finish her civil engineering degree. “There’s nothing left for me,” Mimi says. “I’m working here with no [money] for myself, just for my family.” I’m working here with no [money] for myself, just for my family. Mimi Even if Mimi did decide to hand in her notice, she would risk deportation. Until 2012, an overseas domestic worker visa allowed Filipina women to quit their jobs and find a new employer within the UK without it affecting their immigration status. “But when [Prime Minister David] Cameron and the Conservatives were in power, they removed the rights of the domestic workers to change their employers,” says Phoebe Dimacali, who heads up the Filipino Domestic Workers Association UK, a volunteer organisation of more than 80 women from the Philippines in the UK. “Once they leave their employers they will automatically become undocumented.” In 2020, foreign domestic workers can legally change employers in the UK within the first six months of their arrival. After six months, the only way they can stay in the country is if he or she can prove they have been trafficked. “The reason why that is a problematic response is because we have lots of people that come to see us who have been exploited but haven’t been trafficked,” says Avril Sharp, legal policy and campaigns officer at Kalayaan, a London-based non-governmental organisation advocating for migrant domestic workers’ rights. “But they may well be trafficked later in the future, because their visa – if it hasn’t already – will expire, and then they will lose a lot of … the basic fundamental rights that will keep them safe in the UK.” Many of the women who say they have been trafficked are not allowed to work and have to survive on the national asylum support allowance of £39.60 a week until their visa application is processed, which can take up to three years. Human rights campaigners, along with the Labour MP for Birmingham, Yardley Jess Phillips, are urgently calling for 2012’s overseas domestic worker visa to be reinstated during the pandemic, and to allow thousands of women the right to escape abusive working conditions. “They’re not being fed, they sleep on the floor, they’re not being given the right amount of wages that they need,” says Dimicali. “Nobody knows what is happening inside these big houses in Knightsbridge, inside these big houses in Kensington, in these very wealthy places in London.” A Home Office spokesperson said: “We are committed to protecting migrant domestic workers from exploitation and have already made a number of changes to better protect workers. This includes allowing workers to switch to a different employer and explaining how to raise concerns. We are also proud to provide world-leading support for victims of modern slavery so they can rebuild their lives, including by providing accommodation, financial support and counselling.” ••• After her employer stopped paying for her food in Bahrain in September, Rowena found part-time work cleaning houses in the neighbourhood, earning approximately 16BHD (£30) every week. Her visa has expired, and she’s worried that if she’s caught, she might be sent to jail. “It’s useless,” she said. “Because I’m alone here. This is not my country.” On 4 December, Rowena received 75BHD (£147) in financial support from the Philippine government, seven months after she first applied. The cheapest ticket from Manama to Manila costs more than twice as much as she received. Her boss has promised to pay for her flight home, but he hasn’t told her when. The Phillipine department of foreign affairs did not respond to repeated requests for comment. As rates of Covid-19 continue to climb across the world, neither she nor Mimi have told their children the reality of their lives abroad. When Rowena’s 24-year-old daughter and two-year-old grandson ask how she’s doing, she lies. “She’s asking me: ‘Mama, what date do you come back?’ I say: ‘Very soon …’ But I don’t know, because my boss never says: ‘OK, your ticket is ready now.’” Until he does, Rowena lies on her pile of blankets behind the desk and waits.

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The stock market is at peak dumb: Etsy soars because Elon Musk tweets about it

“I kinda love Etsy,” Musk tweeted, adding in a follow up tweet that he bought a wool Marvin the Martian helmet (the alien from the Bugs Bunny cartoons) for his dog — fitting as Musk, of course, wants to one day go to Mars with his other company, SpaceX.

The stock pulled back later in the day though. It opened 8% higher but was down 2% by afternoon.

Still, given there was no other company news from Etsy Tuesday morning, it seems safe to say that Musk’s tweet was the primary catalyst for the stock’s premarket surge.

That, of course, is ridiculous. It’s also yet another example of the increasingly short-term nature of the stock market, one where algorithms can drive prices and individual investors using services like Robinhood are eager to make a quick buck.

Recently, shares of companies that many professional investors are shorting — because they expect the stocks to go down since the companies are struggling or overvalued — are instead surging thanks to support from traders on a popular Reddit board. GameStop (GME), BlackBerry (BB), Bed Bath & Beyond (BBBY), Macy’s (M) and AMC (AMC) are just a few examples.
But Etsy is nothing like these companies in that it’s thriving, in part due to strong demand for masks during the Covid-19 pandemic. Analysts are forecasting that Etsy’s sales nearly doubled in 2020 and that earnings per share soared more than 175%.
Musk’s tweet put a bigger spotlight on Etsy, though, and it isn’t the first time he’s sparked a big move in an asset that isn’t Tesla. The price of digital currency dogecoin popped late last month when he touted it on Twitter.
Still, it’s a bit ironic that Etsy is benefiting from Musk’s endorsement. Although Tesla was finally added to the S&P 500 in December, many on Wall Street were surprised when Tesla was snubbed for the index in September. The company that was added back then instead of Tesla? Etsy.



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