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Twenty Years of NAFTA

  • Marcos Godoy of Mexico City manufactures car dash mats at a maquiladora belonging to the TECMA group in Ciudad Juarez, Mexico. TECMA currently has 14 maquiladora plants in Ciudad Juarez. While there is undoubtedly a larger middle class today, Mexico is the only major Latin American country where poverty also has grown in recent years. (AP Photo/Ivan Pierre Aguirre)
    1/18

    Legacy of NAFTA

    Marcos Godoy of Mexico City manufactures car dash mats at a maquiladora belonging to the TECMA group in Ciudad Juarez, Mexico. TECMA currently has 14 maquiladora plants in Ciudad Juarez. While there is undoubtedly a larger middle class today, Mexico is the only major Latin American country where poverty also has grown in recent years. (AP Photo/Ivan Pierre Aguirre)
  • Oscar Lira of Zacatecas, Mexico repairs a receipt printer at a maquiladora belonging to the TECMA group of Ciudad Juarez. With the implementation of the North American Free Trade Agreement twenty years ago, many North American and international companies have moved their manufacturing to Mexico at a lower cost, though a majority of Mexicans have seen little benefit in income. While there is undoubtedly a larger middle class today, Mexico is the only major Latin American country where poverty also has grown in recent years. (AP Photo/Ivan Pierre Aguirre)
    2/18

    Legacy of NAFTA

    Oscar Lira of Zacatecas, Mexico repairs a receipt printer at a maquiladora belonging to the TECMA group of Ciudad Juarez. With the implementation of the North American Free Trade Agreement twenty years ago, many North American and international companies have moved their manufacturing to Mexico at a lower cost, though a majority of Mexicans have seen little benefit in income. While there is undoubtedly a larger middle class today, Mexico is the only major Latin American country where poverty also has grown in recent years. (AP Photo/Ivan Pierre Aguirre)
  • People walk past Mexican and American stores in Mexico City. Looking around a Mexico dotted by Starbucks, Wal-Mart and Krispy Kreme outlets, it's hard to remember the country before the North American Free Trade Agreement, which has dramatically expanded consumer choice and trade since it took effect 20 years ago. (AP Photo/Marco Ugarte)
    3/18

    Legacy of NAFTA

    People walk past Mexican and American stores in Mexico City. Looking around a Mexico dotted by Starbucks, Wal-Mart and Krispy Kreme outlets, it's hard to remember the country before the North American Free Trade Agreement, which has dramatically expanded consumer choice and trade since it took effect 20 years ago. (AP Photo/Marco Ugarte)
  • Stay in the know at a glance with the Top 10 daily stories

    Yahoo News is better in the app

    Stay in the know at a glance with the Top 10 daily stories

  • A family leaves a local Walmart in Mexico City. Looking around a Mexico dotted by Starbucks, Wal-Marts and Krispy Kreme outlets, it's hard to remember the country before the North American Free Trade Agreement, which has dramatically expanded consumer choice and trade since it took effect 20 years ago.(AP Photo/Marco Ugarte)
    4/18

    Legacy of NAFTA

    A family leaves a local Walmart in Mexico City. Looking around a Mexico dotted by Starbucks, Wal-Marts and Krispy Kreme outlets, it's hard to remember the country before the North American Free Trade Agreement, which has dramatically expanded consumer choice and trade since it took effect 20 years ago.(AP Photo/Marco Ugarte)
  • A factory worker tries to fix an ATM card reader at a maquiladora belonging to the TECMA group in Ciudad Juarez, Mexico. With the implementation of the North American Free Trade Agreement twenty years ago, many North American and international companies have moved their manufacturing to Mexico at a lower cost. While there is undoubtedly a larger middle class today, Mexico is the only major Latin American country where poverty also has grown in recent years. (AP Photo/Ivan Pierre Aguirre)
    5/18

    Legacy of NAFTA

    A factory worker tries to fix an ATM card reader at a maquiladora belonging to the TECMA group in Ciudad Juarez, Mexico. With the implementation of the North American Free Trade Agreement twenty years ago, many North American and international companies have moved their manufacturing to Mexico at a lower cost. While there is undoubtedly a larger middle class today, Mexico is the only major Latin American country where poverty also has grown in recent years. (AP Photo/Ivan Pierre Aguirre)
  • Vehicles line to cross The Paso del Norte Bridge between El Paso, Texas and Ciudad Juarez towards El Paso. Twenty years ago, the North American Free Trade Agreement went into effect, dramatically changing Mexico in fundamental ways. Before Nafta, Mexico was a closed, state-dominated economy reeling from debt and the underlying problems of Mexican farms _ low productivity on small plots. That had set up a perfect storm of mass unemployment. (AP Photo/Ivan Pierre Aguirre)
    6/18

    Legacy of NAFTA

    Vehicles line to cross The Paso del Norte Bridge between El Paso, Texas and Ciudad Juarez towards El Paso. Twenty years ago, the North American Free Trade Agreement went into effect, dramatically changing Mexico in fundamental ways. Before Nafta, Mexico was a closed, state-dominated economy reeling from debt and the underlying problems of Mexican farms _ low productivity on small plots. That had set up a perfect storm of mass unemployment. (AP Photo/Ivan Pierre Aguirre)
  • Stay in the know at a glance with the Top 10 daily stories

    Yahoo News is better in the app

    Stay in the know at a glance with the Top 10 daily stories

  • Plumber Ruben Rodriguez, 67 stands next to his house overlooking the high-rises of the upscale Santa Fe neighborhood in Mexico City. It's hard to remember the country before the North American Free Trade Agreement but a majority of Mexicans have seen little benefit in income. While there is undoubtedly a larger middle class today, Mexico is the only major Latin American country where poverty has grown in recent years. (AP Photo/Marco Ugarte)
    7/18

    Legacy of NAFTA

    Plumber Ruben Rodriguez, 67 stands next to his house overlooking the high-rises of the upscale Santa Fe neighborhood in Mexico City. It's hard to remember the country before the North American Free Trade Agreement but a majority of Mexicans have seen little benefit in income. While there is undoubtedly a larger middle class today, Mexico is the only major Latin American country where poverty has grown in recent years. (AP Photo/Marco Ugarte)
  • A U.S. truck drives on an overpass in Mexico City. It is hard to remember the country before the North American Free Trade Agreement, which went into effect on Jan. 1, 1994. The three North American countries are pushing to become even more economically integrated.(AP Photo/Marco Ugarte)
    8/18

    Legacy of NAFTA

    A U.S. truck drives on an overpass in Mexico City. It is hard to remember the country before the North American Free Trade Agreement, which went into effect on Jan. 1, 1994. The three North American countries are pushing to become even more economically integrated.(AP Photo/Marco Ugarte)
  • ·People shop at a local Costco in Mexico City. It's hard to remember the country before the North American Free Trade Agreement which went into effect 20 years ago on Jan. 1. Now, At supermarkets, shoppers are now familiar with everything from cranberries to chai to smoked polish sausages that few had tasted before the treaty tore down trade barriers and tariffs between Mexico, Canada and the United States. (AP Photo/Dario Lopez-Mills)
    9/18

    Legacy of NAFTA

    ·People shop at a local Costco in Mexico City. It's hard to remember the country before the North American Free Trade Agreement which went into effect 20 years ago on Jan. 1. Now, At supermarkets, shoppers are now familiar with everything from cranberries to chai to smoked polish sausages that few had tasted before the treaty tore down trade barriers and tariffs between Mexico, Canada and the United States. (AP Photo/Dario Lopez-Mills)
  • Stay in the know at a glance with the Top 10 daily stories

    Yahoo News is better in the app

    Stay in the know at a glance with the Top 10 daily stories

  • Workers at one of maquiladoras of the TECMA group prepare to raise the U.S. flag along with the Mexican and TECMA flags in Ciudad Juarez, Mexico. TECMA currently has 14 maquiladora plants in Ciudad Juarez. With the implementation of the North American Free Trade Agreement twenty years ago, many North American and international companies have moved their manufacturing to Mexico at a lower cost and while a majority of Mexicans have seen little benefit in income. While there is undoubtedly a larger middle class today, Mexico is the only major Latin American country where poverty also has grown in recent years. (AP Photo/Ivan Pierre Aguirre)
    10/18

    Legacy of NAFTA

    Workers at one of maquiladoras of the TECMA group prepare to raise the U.S. flag along with the Mexican and TECMA flags in Ciudad Juarez, Mexico. TECMA currently has 14 maquiladora plants in Ciudad Juarez. With the implementation of the North American Free Trade Agreement twenty years ago, many North American and international companies have moved their manufacturing to Mexico at a lower cost and while a majority of Mexicans have seen little benefit in income. While there is undoubtedly a larger middle class today, Mexico is the only major Latin American country where poverty also has grown in recent years. (AP Photo/Ivan Pierre Aguirre)
  • People shop at a local Costco in Mexico City. It's hard to remember the country before the North American Free Trade Agreement which went into effect 20 years ago on Jan. 1. Now, At supermarkets, shoppers are now familiar with everything from cranberries to chai to smoked polish sausages that few had tasted before the treaty tore down trade barriers and tariffs between Mexico, Canada and the United States. (AP Photo/Dario Lopez-Mills)
    11/18

    Legacy of NAFTA

    People shop at a local Costco in Mexico City. It's hard to remember the country before the North American Free Trade Agreement which went into effect 20 years ago on Jan. 1. Now, At supermarkets, shoppers are now familiar with everything from cranberries to chai to smoked polish sausages that few had tasted before the treaty tore down trade barriers and tariffs between Mexico, Canada and the United States. (AP Photo/Dario Lopez-Mills)
  • ôPeople with goods from the Unites States in hand cross back into Mexico at The Paso del Norte Bridge between El Paso, Texas and Ciudad Juarez. Twenty years ago, the North American Free Trade Agreement went into effect, at supermarkets, shoppers are now familiar with everything from cranberries to chai and lemons (as opposed to the Mexican lime) that few had tasted before the treaty tore down trade barriers and tariffs between Mexico, Canada and the United States. . (AP Photo/Ivan Pierre Aguirre)
    12/18

    Legacy of NAFTA

    ôPeople with goods from the Unites States in hand cross back into Mexico at The Paso del Norte Bridge between El Paso, Texas and Ciudad Juarez. Twenty years ago, the North American Free Trade Agreement went into effect, at supermarkets, shoppers are now familiar with everything from cranberries to chai and lemons (as opposed to the Mexican lime) that few had tasted before the treaty tore down trade barriers and tariffs between Mexico, Canada and the United States. . (AP Photo/Ivan Pierre Aguirre)
  • Stay in the know at a glance with the Top 10 daily stories

    Yahoo News is better in the app

    Stay in the know at a glance with the Top 10 daily stories

  • Workers manufacture car dash mats at a maquiladora belonging to the TECMA group in Ciudad Juarez, Mexico. With the implementation of the North American Free Trade Agreement twenty years ago, many North American and international companies have moved their manufacturing to Mexico at a lower cost and while auto, electronics and agriculture sectors in Mexico has grown, a majority of Mexicans have seen little benefit in income. (AP Photo/Ivan Pierre Aguirre)
    13/18

    Legacy of NAFTA

    Workers manufacture car dash mats at a maquiladora belonging to the TECMA group in Ciudad Juarez, Mexico. With the implementation of the North American Free Trade Agreement twenty years ago, many North American and international companies have moved their manufacturing to Mexico at a lower cost and while auto, electronics and agriculture sectors in Mexico has grown, a majority of Mexicans have seen little benefit in income. (AP Photo/Ivan Pierre Aguirre)
  • American companies such as Applebee's, Burger King and Smartmart line the street in Ciudad Juarez. Looking around a Mexico dotted by American outlets, it's hard to remember the country before the North American Free Trade Agreement, which has dramatically expanded consumer choice and trade since it took effect 20 years ago. (AP Photo/Ivan Pierre Aguirre)
    14/18

    Legacy of NAFTA

    American companies such as Applebee's, Burger King and Smartmart line the street in Ciudad Juarez. Looking around a Mexico dotted by American outlets, it's hard to remember the country before the North American Free Trade Agreement, which has dramatically expanded consumer choice and trade since it took effect 20 years ago. (AP Photo/Ivan Pierre Aguirre)
  • Crowds of shoppers fill a busy business section of downtown Ciudad Juarez, Mexico.Twenty years ago, the North American Free Trade Agreement went into effect, dramatically changing Mexico in fundamental ways such as the availability of consumer goods and clothing that were trendy among Mexicoâs wealthy are now available to everyone, with more products and choice. (AP Photo/Ivan Pierre Aguirre)
    15/18

    Legacy of NAFTA

    Crowds of shoppers fill a busy business section of downtown Ciudad Juarez, Mexico.Twenty years ago, the North American Free Trade Agreement went into effect, dramatically changing Mexico in fundamental ways such as the availability of consumer goods and clothing that were trendy among Mexicoâs wealthy are now available to everyone, with more products and choice. (AP Photo/Ivan Pierre Aguirre)
  • Stay in the know at a glance with the Top 10 daily stories

    Yahoo News is better in the app

    Stay in the know at a glance with the Top 10 daily stories

  • 'A man with goods from the Unites States crosses back into Mexico at The Paso del Norte Bridge between El Paso, Texas and Ciudad Juarez, Thursday. Twenty years ago, the North American Free Trade Agreement went into effect, dramatically changing Mexico in fundamental ways. At supermarkets, shoppers are now familiar with everything from cranberries to chai and lemons (as opposed to the Mexican lime) that few had tasted before the treaty tore down trade barriers and tariffs between Mexico, Canada and the United States. (AP Photo/Ivan Pierre Aguirre)
    16/18

    Legacy of NAFTA

    'A man with goods from the Unites States crosses back into Mexico at The Paso del Norte Bridge between El Paso, Texas and Ciudad Juarez, Thursday. Twenty years ago, the North American Free Trade Agreement went into effect, dramatically changing Mexico in fundamental ways. At supermarkets, shoppers are now familiar with everything from cranberries to chai and lemons (as opposed to the Mexican lime) that few had tasted before the treaty tore down trade barriers and tariffs between Mexico, Canada and the United States. (AP Photo/Ivan Pierre Aguirre)
  • People shop at a local Costco in Mexico City. It's hard to remember the country before the North American Free Trade Agreement which went into effect 20 years ago on Jan. 1. Now, At supermarkets, shoppers are now familiar with everything from cranberries to chai to smoked polish sausages that few had tasted before the treaty tore down trade barriers and tariffs between Mexico, Canada and the United States. (AP Photo/Dario Lopez-Mills)
    17/18

    Legacy of NAFTA

    People shop at a local Costco in Mexico City. It's hard to remember the country before the North American Free Trade Agreement which went into effect 20 years ago on Jan. 1. Now, At supermarkets, shoppers are now familiar with everything from cranberries to chai to smoked polish sausages that few had tasted before the treaty tore down trade barriers and tariffs between Mexico, Canada and the United States. (AP Photo/Dario Lopez-Mills)
  • ­Vehicles line to cross The Paso del Norte Bridge between El Paso, Texas and Ciudad Juarez towards El Paso. Twenty years ago, the North American Free Trade Agreement went into effect, dramatically changing Mexico in fundamental ways but the treaty never met many of its sweeping promises to close Mexico's wage gap with the United States, boost job growth, fight poverty and protect the environment. (AP Photo/Ivan Pierre Aguirre)
    18/18

    Legacy of NAFTA

    ­Vehicles line to cross The Paso del Norte Bridge between El Paso, Texas and Ciudad Juarez towards El Paso. Twenty years ago, the North American Free Trade Agreement went into effect, dramatically changing Mexico in fundamental ways but the treaty never met many of its sweeping promises to close Mexico's wage gap with the United States, boost job growth, fight poverty and protect the environment. (AP Photo/Ivan Pierre Aguirre)
Marcos Godoy of Mexico City manufactures car dash mats at a maquiladora belonging to the TECMA group in Ciudad Juarez, Mexico. TECMA currently has 14 maquiladora plants in Ciudad Juarez. While there is undoubtedly a larger middle class today, Mexico is the only major Latin American country where poverty also has grown in recent years. (AP Photo/Ivan Pierre Aguirre)
Oscar Lira of Zacatecas, Mexico repairs a receipt printer at a maquiladora belonging to the TECMA group of Ciudad Juarez. With the implementation of the North American Free Trade Agreement twenty years ago, many North American and international companies have moved their manufacturing to Mexico at a lower cost, though a majority of Mexicans have seen little benefit in income. While there is undoubtedly a larger middle class today, Mexico is the only major Latin American country where poverty also has grown in recent years. (AP Photo/Ivan Pierre Aguirre)
People walk past Mexican and American stores in Mexico City. Looking around a Mexico dotted by Starbucks, Wal-Mart and Krispy Kreme outlets, it's hard to remember the country before the North American Free Trade Agreement, which has dramatically expanded consumer choice and trade since it took effect 20 years ago. (AP Photo/Marco Ugarte)
A family leaves a local Walmart in Mexico City. Looking around a Mexico dotted by Starbucks, Wal-Marts and Krispy Kreme outlets, it's hard to remember the country before the North American Free Trade Agreement, which has dramatically expanded consumer choice and trade since it took effect 20 years ago.(AP Photo/Marco Ugarte)
A factory worker tries to fix an ATM card reader at a maquiladora belonging to the TECMA group in Ciudad Juarez, Mexico. With the implementation of the North American Free Trade Agreement twenty years ago, many North American and international companies have moved their manufacturing to Mexico at a lower cost. While there is undoubtedly a larger middle class today, Mexico is the only major Latin American country where poverty also has grown in recent years. (AP Photo/Ivan Pierre Aguirre)
Vehicles line to cross The Paso del Norte Bridge between El Paso, Texas and Ciudad Juarez towards El Paso. Twenty years ago, the North American Free Trade Agreement went into effect, dramatically changing Mexico in fundamental ways. Before Nafta, Mexico was a closed, state-dominated economy reeling from debt and the underlying problems of Mexican farms _ low productivity on small plots. That had set up a perfect storm of mass unemployment. (AP Photo/Ivan Pierre Aguirre)
Plumber Ruben Rodriguez, 67 stands next to his house overlooking the high-rises of the upscale Santa Fe neighborhood in Mexico City. It's hard to remember the country before the North American Free Trade Agreement but a majority of Mexicans have seen little benefit in income. While there is undoubtedly a larger middle class today, Mexico is the only major Latin American country where poverty has grown in recent years. (AP Photo/Marco Ugarte)
A U.S. truck drives on an overpass in Mexico City. It is hard to remember the country before the North American Free Trade Agreement, which went into effect on Jan. 1, 1994. The three North American countries are pushing to become even more economically integrated.(AP Photo/Marco Ugarte)
·People shop at a local Costco in Mexico City. It's hard to remember the country before the North American Free Trade Agreement which went into effect 20 years ago on Jan. 1. Now, At supermarkets, shoppers are now familiar with everything from cranberries to chai to smoked polish sausages that few had tasted before the treaty tore down trade barriers and tariffs between Mexico, Canada and the United States. (AP Photo/Dario Lopez-Mills)
Workers at one of maquiladoras of the TECMA group prepare to raise the U.S. flag along with the Mexican and TECMA flags in Ciudad Juarez, Mexico. TECMA currently has 14 maquiladora plants in Ciudad Juarez. With the implementation of the North American Free Trade Agreement twenty years ago, many North American and international companies have moved their manufacturing to Mexico at a lower cost and while a majority of Mexicans have seen little benefit in income. While there is undoubtedly a larger middle class today, Mexico is the only major Latin American country where poverty also has grown in recent years. (AP Photo/Ivan Pierre Aguirre)
People shop at a local Costco in Mexico City. It's hard to remember the country before the North American Free Trade Agreement which went into effect 20 years ago on Jan. 1. Now, At supermarkets, shoppers are now familiar with everything from cranberries to chai to smoked polish sausages that few had tasted before the treaty tore down trade barriers and tariffs between Mexico, Canada and the United States. (AP Photo/Dario Lopez-Mills)
ôPeople with goods from the Unites States in hand cross back into Mexico at The Paso del Norte Bridge between El Paso, Texas and Ciudad Juarez. Twenty years ago, the North American Free Trade Agreement went into effect, at supermarkets, shoppers are now familiar with everything from cranberries to chai and lemons (as opposed to the Mexican lime) that few had tasted before the treaty tore down trade barriers and tariffs between Mexico, Canada and the United States. . (AP Photo/Ivan Pierre Aguirre)
Workers manufacture car dash mats at a maquiladora belonging to the TECMA group in Ciudad Juarez, Mexico. With the implementation of the North American Free Trade Agreement twenty years ago, many North American and international companies have moved their manufacturing to Mexico at a lower cost and while auto, electronics and agriculture sectors in Mexico has grown, a majority of Mexicans have seen little benefit in income. (AP Photo/Ivan Pierre Aguirre)
American companies such as Applebee's, Burger King and Smartmart line the street in Ciudad Juarez. Looking around a Mexico dotted by American outlets, it's hard to remember the country before the North American Free Trade Agreement, which has dramatically expanded consumer choice and trade since it took effect 20 years ago. (AP Photo/Ivan Pierre Aguirre)
Crowds of shoppers fill a busy business section of downtown Ciudad Juarez, Mexico.Twenty years ago, the North American Free Trade Agreement went into effect, dramatically changing Mexico in fundamental ways such as the availability of consumer goods and clothing that were trendy among Mexicoâs wealthy are now available to everyone, with more products and choice. (AP Photo/Ivan Pierre Aguirre)
'A man with goods from the Unites States crosses back into Mexico at The Paso del Norte Bridge between El Paso, Texas and Ciudad Juarez, Thursday. Twenty years ago, the North American Free Trade Agreement went into effect, dramatically changing Mexico in fundamental ways. At supermarkets, shoppers are now familiar with everything from cranberries to chai and lemons (as opposed to the Mexican lime) that few had tasted before the treaty tore down trade barriers and tariffs between Mexico, Canada and the United States. (AP Photo/Ivan Pierre Aguirre)
People shop at a local Costco in Mexico City. It's hard to remember the country before the North American Free Trade Agreement which went into effect 20 years ago on Jan. 1. Now, At supermarkets, shoppers are now familiar with everything from cranberries to chai to smoked polish sausages that few had tasted before the treaty tore down trade barriers and tariffs between Mexico, Canada and the United States. (AP Photo/Dario Lopez-Mills)
­Vehicles line to cross The Paso del Norte Bridge between El Paso, Texas and Ciudad Juarez towards El Paso. Twenty years ago, the North American Free Trade Agreement went into effect, dramatically changing Mexico in fundamental ways but the treaty never met many of its sweeping promises to close Mexico's wage gap with the United States, boost job growth, fight poverty and protect the environment. (AP Photo/Ivan Pierre Aguirre)

Looking around a Mexico dotted by Starbucks, Wal-Mart and Krispy Kreme outlets, it's hard to remember the country before the North American Free Trade Agreement, which has dramatically expanded consumer choice and trade since it took effect 20 years ago on Jan. 1.

While it changed the country in some fundamental ways, the treaty never met many of its sweeping promises to close Mexico's wage gap with the United States, boost job growth, fight poverty and protect the environment. Mexico's weak unions and competition from Asia and Central America kept wages down; the tightening of security along the U.S. border closed off Mexico's immigration "escape valve," and environmental provisions in the agreement proved less powerful than those protecting investors.

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    Rocket Companies Inc (NYSE: RKT) founder Dan Gilbert’s wealth got a $25 billion booster on Tuesday as the holding company gets the attention of retail investors on Reddit’s r/WallStreetBets, according to Bloomberg Billionaire’s Index. What Happened: Gilbert, Age 59, has moved up 19 spots to No. 16 on the index that tracks 500 of the world’s richest. A large chunk of Gilbert’s fortune, 93% to be precise, is comprised of his stake in Rocket, reported Bloomberg. See also: How to Buy Rocket Companies (RKT) Stock Why It Matters: The one-day jump in Gilbert’s wealth is the largest so far in the year, noted Bloomberg. As of press time, Detroit-based Rocket Companies with subsidiaries such as Rocket Mortgage and Quicken Loans was the most discussed company on WallStreetBets, according to SwaggyStocks data. WallStreetBets investors previously carried out short squeezes in the stocks of GameStop Corp (NYSE: GME), AMC Entertainment Holdings Inc (NYSE: AMC), Nokia Oyj (NYSE: NOK), BlackBerry Ltd (NYSE: BB), and others. Rocket reported 162% revenue growth and 350% growth in net income for the fourth quarter, which beat analyst estimates. The company’s shares have shot up since last Friday. S3 Partners data indicates the Rocket has currently $1.2 billion in short interest — making it one of the most shorted stocks in the market. Price Action: Rocket shares traded nearly 8.2% lower at $38.20 in after-hours trading on Tuesday after shooting up almost 71.2% in the regular session. Photo by Steve Jennings on Wikimedia See more from BenzingaClick here for options trades from BenzingaRocket Companies Overtakes GameStop, Palantir As WallStreetBets' Top Interest© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Exxon scales back shale ambitions to focus on lower costs, dividend preservation

    Exxon Mobil Corp is lowering its ambitions for oil and gas output, it said Wednesday, as it focuses on cutting costs and preserving dividends to win back investors that have soured on the company after years of overspending. Exxon last year fell out of the Dow Jones index of top U.S. companies and shares fell to a two-decade low. "The priority right now is to rebuild the balance sheet," Exxon Chief Executive Darren Woods said on a media call following a virtual analysts day that emphasized the company's commitment to lower spending and reducing debt, which has ballooned to $67.6 billion from $37.8 billion two years earlier.

  • U.S. Inflation Expectations Hit Decade High as Yields Resurge

    (Bloomberg) -- U.S. Treasuries tumbled anew on Wednesday, driving long-maturity yields to their highest levels this week and pushing up inflation expectations as traders continued to price in a quicker economic rebound from the pandemic.Benchmark 10-year Treasury yields surged as much as 10.3 basis points to 1.495%, a move reminiscent of last Thursday’s startling selloff in government debt. Meanwhile, a market proxy for the anticipated annual inflation rate for the next half-decade exceeded 2.5% for the first time since 2008 -- aided by climbing oil prices. At least part of the trigger for the fixed-income losses came from the U.K., which said it will sell more bonds than expected as its economy emerges from a deep recession.Also in the background was Joe Biden’s announcement that enough doses of virus vaccine should be available to every American adult by the end of May, and a report Wednesday that the president would moderate certain stimulus demands to try to win support for his virus-relief bill. Rising yields have started to draw the attention of Federal Reserve officials, leaving all eyes on an appearance Thursday by Chair Jerome Powell.Among other things, “the stimulus package is likely to go through and the economy is reopening,” said Michael Franzese, managing partner at MCAP LLC in New York. “The battle is on between rates going higher super-fast and a Federal Reserve that’s trying to keep the market stable and may try to slow the momentum of the reflation and economic-rebound trade into something more manageable.”Early inklings of inflation were evident in data from the Institute for Supply Management this week: Measures of prices paid jumped to their highest levels since 2008.A large trade on Wednesday in 10-year Treasury options and accompanying futures selling also fueled the leap in yields, as did heavy corporate bond supply.The rates market is not yet done fully pricing in robust U.S. economic growth, which would entail a 10-year yield trading around 1.90%, said Mark Heppenstall, chief investment officer of Penn Mutual Asset Management in Horsham, Pennsylvania. That’s the level last seen in January 2020, two months before pandemic fears started prompting forced shutdowns in the U.S.Beyond rising nominal and breakeven rates, “the dynamic rise in the 10-year real, inflation-adjusted yield we’ve seen is the market partly adjusting to a faster-than-anticipated pace of rate normalization by the Fed,” he said.The timing of the Fed’s first rate hike, known as liftoff, and subsequent rate hikes haven’t been factored in, making Treasuries vulnerable to a further selloff in the weeks ahead, according to Heppenstall.(Adds reference to Fed rate hikes in ninth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Staff at some major U.S. firms to keep masks on in Texas even as state lifts mandate

    Japanese carmaker Toyota, which has its U.S. headquarters and a factory in Texas, said it was looking into the move by Governor Greg Abbott to roll back the mask mandate, and it doesn't contemplate any immediate changes. "The early read is – no change for us," Toyota spokesman Scott Vazin said.

  • Monthly stimulus checks may be on the way for families later this year

    A bill in Congress would give families up to $300 a month per child starting this summer.

  • 13 years after investing in an obscure Chinese automaker, Warren Buffett’s BYD bet is paying off big

    A $232 million investment has ballooned into a $5.9 billion stake.

  • What Will Happen To Bitcoin In The Next Decade?

    Bitcoin's first decade of existence was marked by scandals and wild price swings. Will the next decade be similar or is the cryptocurrency poised for bigger things?

  • A $21 Trillion Treasuries Mystery Is Bedeviling Global Markets

    (Bloomberg) -- Bond traders have been saying for years that liquidity is there in the world’s biggest bond market, except when you really need it.Last week’s startling gyrations in U.S. Treasury yields may offer fresh backing for that mantra, and prompt another bout of soul-searching in a $21 trillion market that forms the bedrock of global finance. While stocks are prone to sudden swings, such episodes are supposed to be few and far between in a government-debt market that sets the benchmark risk-free rate for much of the world.Yet jarring moves occur periodically in Treasuries, forming a bit of a mystery as no two events have been the same. Some point to heightened bank regulations in the wake of the 2008 financial crisis. Scrutiny over liquidity shortfalls intensified in October 2014 when a 12-minute crash and rebound in yields happened with no apparent trigger. Panic selling during the pandemic-fueled chaos a year ago, exacerbated when hedge funds’ leveraged wagers blew up, brought the issue to the fore again.And then came last week, when the gap between bid and offer prices for 30-year bonds hit the widest since the panic of March 2020.The latest events “are a stark reminder what happens when liquidity suddenly vanishes in the deepest, largest bond market,” said Ben Emons, managing director of global macro strategy at Medley Global Advisors.At issue is whether this vast market is more vulnerable to sudden bouts of turbulence thanks to measures that have made it more difficult for banks to hold Treasuries. Some analysts say the tumult last week was magnified by questions over whether the Federal Reserve will extend an easing of bank capital requirements, which is set to end March 31. Put in place early on in the pandemic, the measure is seen as making it easier for banks to add Treasuries to their balance sheets.The 2014 episode triggered a deep dive into the market structure, and regulators have pushed through some changes -- such as increased transparency -- and speculation has grown that more steps to bolster the market’s structure may be ahead.“While the scale and speed of flows associated with the COVID shock are likely pretty far out in the tail of the probability distribution, the crisis highlighted vulnerabilities in the critically important Treasury market that warrant careful analysis,” Fed Governor Lael Brainard said Monday in prepared remarks to the Institute of International Bankers.There are plenty of potential culprits in last week’s bond-market tumble -- which has since mostly reversed -- from improving economic readings to more technical drivers. Ultra-loose Fed policy and the prospect of fresh U.S. fiscal stimulus have investors betting on quicker growth and inflation. Add to that a wave of convexity hedgers, and unwinding by big trend-following investors -- such as commodity trading advisers.Based on Bloomberg’s U.S. Government Securities Liquidity Index, a gauge of how far yields are deviating from a fair-value model, liquidity conditions worsened recently, though it was nothing like what was seen in March.For Zoltan Pozsar, a strategist at Credit Suisse, the action began in Asia with bond investors reacting to perceived hawkish signs from the central banks of Australia and New Zealand. That sentiment then carried over into the U.S. as carry trades and other levered positions in the bond market were wiped out. A disastrous auction of seven-year notes on Thursday added fuel to the unraveling.Last week’s drama “brings to mind other notable episodes in recent years in which a deterioration in the Treasury market microstructure was primarily to blame,” JPMorgan & Chase Co. strategist Henry St John wrote in a note with colleagues.One key gauge of Treasury liquidity -- market depth, or the ability to trade without substantially moving prices -- plunged in March 2020 to levels not seen since the 2008 crisis, according to data compiled by JPMorgan. That severe degree of liquidity shortfall didn’t resurface last week.The bond-market rout only briefly took a toll on share prices last week, with equities surging to start this week, following a sharp retreat in Treasury yields amid month-end buying.The Fed cut rates to nearly zero in March 2020, launched a raft of emergency lending facilities and ramped up bond buying to ensure low borrowing costs and smooth market functioning. That breakdown in functioning has sparked calls for change from regulators and market participants alike.GLOBAL INSIGHT: Recovery? Yes. Tantrum? No. Yield Driver ModelFor now, Treasuries have settled down. Pozsar notes that the jump in yields has provided an opportunity for some value investors to swoop in and pick up extra yield, effectively helping offset the impact of the leveraged investors who scrambled for the exits last week.“Some levered players were shaken out of their positions,” Pozsar said in a forthcoming episode of Bloomberg’s Odd Lots podcast. “It’s not comfortable -- especially if you’re on the wrong side of the trade -- but I don’t think that we should be going down a path where we should redesign the Treasury market.”Why Liquidity Is a Simple Idea But Hard to Nail Down: QuickTake(Updates with details on Bloomberg’s liquidity index in 10th paragraph, and a chart)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Sorry Steak Lovers, Australia's Running Out of Cows

    (Bloomberg) -- In what would be a blow to steak lovers the world over, Australian beef may slip off global menus if cattle producers Down Under can’t hasten the pace of a nationwide herd rebuild.With herd sizes near the lowest since the early 1990s, the nation’s beef producers face the possibility of losing their No. 2 exporter position behind Brazil simply because they don’t have the stock available to service a global market as demand picks up steam up post-Covid-19.The risks of that are growing as some farmers continue to send female cattle to the slaughterhouse instead of keeping them to expand herds. The latest official data show the ratio of female cattle processed as a proportion of total slaughter -- an indicator for whether a herd is in restocking phase -- at 48.2%, not enough to qualify for a technical rebuild, classified at 47% and under.While there’s still time to get that ratio down, it needs to happen now as restocking is a years-long process from calf to slaughter and the industry faces a range of headwinds, said Matt Dalgleish, manager of commodity market insights at Thomas Elder Markets. “We’ve got to get those numbers back up so that we don’t lose market share into the export markets,” he added.Australia’s beef industry has seen some turbulent times after years of drought forced farmers, who were unable to support herds on parched pastures, to cull hoards of cattle. The resultant oversupply on the market caused Australian cattle prices to plummet in 2019 to half the levels seen today.Ranchers are also facing a less certain future with the rise of alternative-protein demand as environmental and health concerns drive consumers to products like faux meat burgers or nuggets.After rains replenished pastures last year and with the herd rebuild season underway, farmers held onto livestock, squeezing supplies and sending prices soaring to records. Those prices will probably remain at “exceptionally high levels” according to Rural Bank’s 2021 outlook.Farmers have to contend between keeping their cattle for the rebuild, or sending them for slaughter to “cash in” now -- a tempting offer for some looking to pay off large debts incurred during drought years for outsized feed grain purchases to keep the animals alive, Dalgleish said.Prices for Australian cattle used to track South American countries, but drought conditions during 2014–15 tightened supply Down Under, which saw prices spike and never properly recover. Weaker Brazilian real and Argentine peso in recent years also gave those producers extra leverage. With the Australian dollar gaining to almost 80 U.S. cents, the Aussie product is becoming out of reach for many importers. Prices have even overtaken the U.S., which traditionally holds the title for the world’s most expensive beef. The government forecaster Abares sees U.S. and Brazil expanding shipments through 2022-23 to high-value markets, notably China. The high prices have also elicited a response from Indonesia, where strikes by local meat sellers over Australian beef costs prompted the government to warn that it will look to other suppliers, according to Australian media reports. Indonesia is Australia’s largest export market for cattle and beef offal.Though Australia accounts for only 4% of global beef production, the country is one of the world’s largest shippers, with major markets in China, Japan and South Korea. Export volumes fell 15% last year as record prices hurt demand.Australia’s position in those markets is increasingly at risk, compounded by free trade agreements that see higher tariffs on the nation’s shipments versus American beef, according to Dalgleish. “The trade situation is such that the U.S. product is being more favored,” he said.For Australia’s cows that, unlike cattle in the U.S., mainly feed on grass instead of grains, climate change could add pressure to rebuild stock fast. With drought never far around the corner, coupled with higher frequency of extreme weather events, it’s crucial to bulk up herd sizes while pastures are green.“Australia’s likely to be back in drought in a couple of years,” Dalgleish said. “It kind of doesn’t leave us a great deal of time to build up to those high twenties in millions of head numbers -- 28, 29 million head. And then you’re kind of stuck again, depending on how prolonged the drought scenarios are looking. We could be back down at record herd levels, and low supply again.”(Updates with estimates from Abares in 10th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Is Bitcoin Useless?

    Bitcoin passed its tenth anniversary of the release of its whitepaper, first introducing it to the world, in 2018. But assessments of the cryptocurrency's impact in the last decade or so have mostly been negative. Is bitcoin useless?

  • Workhorse Wants to Overturn the USPS Decision. What That Would Mean for the Stock.

    Commercial electric-vehicle maker Workhorse meets with the USPS Wednesday to discuss its contract bid loss to Oshkosh.

  • Tesla Former Board Member Says Elon Musk Company Won't Remain 'King Of The Hill In Electric Forever'

    A former board member of Tesla Inc (NASDAQ: TSLA) said Tuesday that the company is unlikely to remain the “king of the hill” in electric vehicles forever, CNBC reported. What Happened: Steve Westly said on CNBC’s “Power Lunch” that he had been bullish on the Elon Musk-led automaker for the last 10 years and it’s “hard to imagine an auto company executing better than Tesla has.” Westly pointed to the company’s latest earnings release in January where it said it had a “multi-year horizon” and expected to achieve 50% average annual growth in vehicle deliveries. See also: How to Invest in Tesla Stock “No one else in the auto world is doing that. Having said that, Tesla is not going to be king of the hill in electric forever,” said Westly. Why It Matters: The venture capitalist noted that there have been large-scale commitments on EVs from legacy automakers such as General Motors Company (NYSE: GM) and Volkswagen AG (OTC: VWAGY). “Tesla is not just getting hit from the high end,” said Westly on the availability of EVs from Volkswagen marques such as Audi and Porsche. Tesla also faces increased competition from Chinese EV rivals, which have more affordable offerings. The analyst noted increased competition in Europe where according to him the company was “No. 1, they’re now No. 4.” See Also: Tesla's Share Of European EV Market Reduced To 3.5% “They’re getting competition from all sectors. They’re going to have to double down to compete.” Tesla’s plans to make a more affordable $25,000 vehicle have left Chinese rivals such as Xpeng Inc (NYSE: XPEV), Nio Inc (NYSE: NIO), and others unfazed. In January, a two-door $4,500 EV made by Wuling — a joint venture of GM and state-owned SAIC Motor — outsold Tesla’s Model 3 in China by nearly two-to-one. Price Action: Tesla shares closed 4.45% lower at $686.44 on Tuesday and gained 0.34% in the after-hours session. Click here to check out Benzinga’s EV Hub for the latest electric vehicles news. See more from BenzingaClick here for options trades from BenzingaNio Says Chip Shortage Will Hit EV Production In Q2Such Popularity, Much Wow! Dogecoin Now Available At 1,800 ATMs Across US© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • ASML extends sales deal with Chinese chipmaker SMIC to end of 2021

    ASML Holding NV has extended a deal to sell chip manufacturing equipment to Semiconductor Manufacturing International Corp, China's largest chipmaker, until the end of this year, the Dutch company said in a statement on Wednesday. ASML made the statement after SMIC on Wednesday disclosed a volume purchase agreement under which it has already spent $1.2 billion with the toolmaker. In a clarifying statement issued several hours later, ASML said the agreement began in 2018 and was slated to expire at the end of 2020, but the two companies agreed in February to extend the deal to the end of this year.

  • BJs Wholesale Is Creeping In On Costco's Territory: Here's How

    Costco Wholesale Corporation (NASDAQ: COST) remains the wholesale leader, but smaller rival BJs Wholesale Club Holdings Inc (NYSE: BJ) is showing superior metrics. What To Know: Costco entered 2020 on a strong note but the early days of the COVID-19 pandemic quickly shifted buying habits, according to the foot traffic analytic firm Placer.ai report. Since early 2020, Costco has seen inconsistent foot traffic trends to the point where it saw year-over-year growth in just four months -- all of which were in the back half of the year. BJs, on the other hand, saw a stellar 2020 with year-over-year foot traffic growth in every month except January. The smaller wholesale chain averaged 13.8% monthly year-over-year growth in visits in the back half of 2020. The momentum continues into 2021 with an identical 13.8% growth rate in January. Related Link: Can Grocers Sustain The 'Pre-Christmas Bump'? Why It's Important: Foot traffic trends are only one part of the equation as it's possible that customers are visiting Costco less often but spending more per trip. In Costco's case, visits were down 1.7% from November 2020 to January 2021 while visits per visitor were down 28.9%. "A massive decline in visits per visitor alongside a fairly minor drop in overall visits shows that Costco may actually be stronger than it's ever been and that the brand is likely adding new members at a very high rate," according to the Placer.ai report. What's Next: BJs deserves credit for a strong 2020 performance but it's unclear if it can sustain momentum in 2021 and beyond, according to Placer.ai. The company continues to offer the compelling value that stands out amid economic uncertainty. BJs Wholesale's stock is up nearly 60% over the past year, while Costco's is up about 4.5%. See more from BenzingaClick here for options trades from BenzingaAccelerated Vaccine Timeline Will 'Inspire Confidence' In Travel Says Marriott CEOBurger King UK's Menu To Be Half Plant-Based Food By 2031© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Mortgage borrowers hit 'snooze' — and risk losing out on lower rates

    Mortgage applications are in a lull, but this might be the time to make your move.