From the floor of the New York Stock Exchange, Yahoo Finance's Jared Blikre joins Alexis Christoforous to break down the latest market moves.
From the floor of the New York Stock Exchange, Yahoo Finance's Jared Blikre joins Alexis Christoforous to break down the latest market moves.
Nio announced a key production milestone as Morgan Stanley turned more bullish on the electric-car maker.
‘I don’t pay bills, which has left me pondering the idea of just staying with him out of convenience, but at what cost to me mentally?’
Former Vice President Biden has a detailed proposal that involves raising taxes on people with taxable income of more than $400,000—essentially targeting the top 1%. President Trump wants to keep the tax cuts that went into effect in 2018, which largely benefited top earners.
Whether AT&T can extend its streak of dividend increases is subject to debate among market watchers. But the telecom and media company has said that the quarterly payout is a priority and that it has the financial wherewithal to keep it going.
The largest Japanese automaker said Wednesday it was adding another 1.52 million U.S. vehicles to the recall that was first announced in January and covers numerous models built between July 2017 through September. Toyota said the vehicles that have a fuel pump that may stop operating and could result in a vehicle stall, and the vehicle may be unable to be restarted. Dealers will replace the fuel pump with an improved version.
As the election peaks, many voters wonder what the Biden tax plan is. Taxes would rise for the wealthy. For others, surprises would include tax cuts.
Shopify (ticker: SHOP) has been a huge winner as the Covid-19 pandemic has prompted many small businesses to rush to establish online storefronts. For the quarter, Shopify posted revenue of $767.4 million, up 96% from a year earlier, and well ahead of the consensus among Wall Street analysts at $663.4 million. The company said Subscription Solutions revenue was $245.3 million, up 48% from a year ago, driven by an increase in merchants joining the platform.
If Joe Biden wins 401(K) plans could be in for a major shake-up – one that could benefit tens of millions of AmericansThe 401(K) retirement plan has proved an extremely popular – and cost-effective – retirement benefit that’s provided by millions of small business owners around the country to their employees. If Joe Biden wins, they could be in for a major shake-up – one that could benefit tens of millions of Americans.Up until now, the rules were fairly simple: employees could contribute a pre-tax amount of their compensation for their retirement and employers could match that amount up to a total combined contribution of $57,000 per year for people under 50 years old. Small business owners benefit from these plans because not only can their employees put away money for themselves for retirement but the more they save, the more the owners can save.But 401(K) plans have a problem: they favor higher earners. That’s because the more an employee makes, the more of a deduction can be taken. That lowers their taxable income and therefore results in paying less taxes. So if a person is earning $200,000 per year and contributes 10% to a 401(K) plan her earnings would be taxed at $180,000 and that’s a big tax savings. But if a person is only earning $40,000 and contributes the same (which is harder to do given the cost of living) then their taxable income would be $36,000 and the amount of tax savings they would reap would be much less due to the lower brackets. The result is that people with lower income are less incentivized to save for retirement.That’s a problem for small business owners too. Why? Because the less your employees put away for retirement the more risk that, as they get older and remain with your company, they may come back to you for additional help when it’s time to retire because they haven’t saved enough. You can say sorry and turn them away. But – if you’re like many of my clients (and I’ve seen this numerous times) – you will probably need to step up in some way with additional assistance. No one wants to be in that situation.Biden’s plan would turn 401(K)s upside down. Instead of allowing contributions to be deducted from income people would be eligible for a refundable tax credit. The plan isn’t fully fleshed out and the amount of the credit has yet to be determined. But let’s assume it’s 26% of an employee’s contributions – the most recent number thrown around. So if that person contributes $100 during the year she will get a $26 credit against the taxes she owes. If she doesn’t owe that amount she’ll get the cash back. If you do the math (and I recommend you ask your accountant to walk you through this), lower earners at lower tax brackets would be able to save more on their taxes under Biden’s plan due to this credit than the current pre-tax deduction they’re now allowed. The opposite would be the case for higher earners.Biden’s proposal is not without its critics. “You’re disincentivizing those small business owners from having that plan any more,” Brian Graff, the CEO of the American Retirement Association, told FOX Business. “Not only is it unfair to those small business owners, it’s going to reduce the likelihood that they’re going to offer those benefits to their employees. And that’s particularly acute in a challenging time like now.”> People working at small businesses are not saving for their retirement as much as they shouldBut the former vice-president believes the proposal will make things more equitable. “Current tax benefits for retirement savings provide upper-income families with a significant tax break, while providing a limited benefit for low- and middle-income workers,” he says on his website.Regardless of who you believe, the fact is that the current system has a big problem: people working at small businesses are not saving for their retirement as much as they should and small businesses – who employ more than 50% of the country’s workers – are not doing enough to motivate them.Just half of US households have retirement accounts, according to a study from the Federal Reserve and new data from the Employment Benefit Research Institute confirms that “nearly half of employees are concerned with their household’s financial wellbeing, citing saving for retirement and having savings in case of an emergency as top sources of financial stress.” Teresa Ghilarducci, a professor of economics at the University of Notre Dame warns that – despite the many benefits business owners themselves receive from offering 401(K) plans – “just 40% of workers were covered by a retirement plan through their workplace in 2017.”The problem isn’t whether higher earners will save enough. I’m not really worried about them. The real problem is that middle- to lower-income families aren’t thinking of the future. Too many of the employees at my clients ignore their retirement benefits. It’s possible that if Biden’s proposals can be proven to save them even more on their taxes, they would be encouraged to put more money away for the future. Given the current status quo, I think his proposal is worth trying.
On Wednesday morning, Jim Cramer shared his first take on the markets which included opinions on potential lockdowns, more layoffs, and if there is a buying opportunity in stocks.Cramer on Lockdowns: While appearing on "Squawk on the Street," Cramer discussed the potential for lockdowns similar to what Europe has done."There's going to be a call for lockdowns."Cramer doesn't believe we will get a lockdown as our country believes in freedom and won't completely close down.Instead, Cramer thinks we'll have a "stay in place voluntarily."Related Link: European Markets Today: Stocks Hit Lows On Rising Coronavirus FearsBuying Opportunity? Markets are expected to open down significantly on Wednesday. The S&P 500 has an implied open down 65 points."If we had a stimulus, we would be focusing on earnings."Instead, Cramer said we're focusing on the rising virus figures and more layoffs: "Very hard to buy a lot of stocks when you see these numbers."Cramer said everyone is fearful.Some states have adopted their own rules on how to stop the spread of the virus said Cramer, which could impact how we control the rising number of cases. He thinks it's realistic that we get something done in terms of stimulus after the election."Buy those stocks tomorrow, not today."Price Action: The SPDR S&P 500 Trust ETF (NYSE: SPY) is down 2% in pre-market trading.See more from Benzinga * Click here for options trades from Benzinga * October 28 Is Best Trading Day Of Year Statistically, Kicks Off Best 6 Months For S&P 500 * What Happens To The MAGA ETF If Trump Loses The Presidential Election?(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
My question is: Can I retire before that and be able to live off of my rental income? If you manage your real estate as “passive” income, then you aren’t contributing to Social Security, which will affect you down the road when it’s time to claim benefits.
Telecom-equipment maker Nokia reported a third-quarter profit that didn’t set off any alarm bells. But its stock slumped on Thursday after Nokia cut its 2020 profit view and guided toward a 2021 outlook worse than analysts expected.
Stanley Druckenmiller reportedly said that a Democratic sweep in the upcoming election could prove to be a headwind for the stock market for years to come.
(Bloomberg) -- Royal Dutch Shell Plc tried to lift itself out of the deepest share-slump in a quarter-century, promising more cash for shareholders even as its business is buffeted by climate change and the coronavirus pandemic.While the pledge of an annual 4% dividend increase may distinguish Shell from some of its ailing peers, the Anglo-Dutch energy giant was still some way from proving itself to be a compelling investment in a world that’s moving away from hydrocarbons.For all the emphasis on transitioning to low-carbon energy, Shell’s schedule of rising payouts still relies on higher oil and gas prices, with few clues about how the company would generate enough cash if markets don’t improve.Even at the peak of the 5.1% bounce on news of Thursday’s dividend hike and better-than-expected third quarter profit, Shell shares were still down about 60% for 2020. This week, they plumbed the lowest levels since 1995.The company has been “in the dog house,” Chief Executive Officer Ben van Beurden acknowledged.In a painful year for Big Oil, Shell cut its dividend in April for the first time since the Second World War, took a record $17 billion impairment charge in August, and announced as many as 9,000 job losses last month.“We are reshaping our investment case,” van Beurden said. “We need to show that we have growth into the future, but also growth right now.”Shell’s third-quarter earnings did provide a bright spot amid the gloom for the oil industry. It reported $955 million of adjusted net income that beat even the highest analyst estimate, lower net debt and strong cash flow. In contrast, Italy’s Eni SpA and Austria’s OMV AG lost money in the period, while Repsol SA and BP Plc eked out small profits.Yet even with the surprise increase, Shell’s dividend of 16.65 cents a share is little more than a third of its 2019 level. And shareholders are still exposed to energy markets that are already faltering in the face of the second wave of the coronavirus pandemic.The new dividend pledge is dependent on Shell reducing its net debt and “without an improved pathway of getting there,” said Alastair Syme, an oil analyst at Citigroup Inc. “Investors are left entirely dependent on macro recovery.”The “world class investment case” van Beurden promised four years ago is still be elusive, but for now it may be enough for Shell to simply be among the best of a bad bunch.Every oil major is walking a treacherous path with little margin for error. Their shareholder base expects generous and reliable dividends. But at the same time, the companies need to shift into renewable energy, with scant evidence that they can generate comparable returns to the traditional oil and gas business.BP, Shell’s closest peer, also slashed its dividend earlier this year and is trading at a similar multidecade low. While the company managed to post a surprise third-quarter profit this week, it gave little indication that shareholder returns would improve any time soon, fixing its payout and saying that a resumption of share buybacks is at least a year away.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shopify stock jumped nearly 3% in pre-market trading today after announcing earnings that handily beat the estimates set by Wall Street. Shopify's $767.4 million in revenue for the quarter was up 96% from a year ago and handily beat the expectations of analysts who were predicting for the company to bring in roughly $658 million. Operating income was also up from the year-ago period with Shopify calling about $50 million, or 7% of revenue, compared to a nearly $36 million loss for the year ago period.
CEO Jamie Iannone said that on an apple-to-apples basis, the company beat guidance on both the top and bottom lines.
Shares of Moderna Inc. were up 2.9% in premarket trading on Thursday after the company again reminded investors that the Phase 3 clinical trial for its COVID-19 vaccine candidate is fully enrolled as part of its third-quarter earnings announcement. It also said it is "actively preparing for the launch" of its COVID-19 vaccine. Moderna is a preclinical company, meaning it does not yet have an authorized or approved product available on the market. It is developing several mRNA-based vaccines, including one for the coronavirus. The company said its research and development expenses have nearly tripled to $344.5 million in the third quarter of 2020, primarily due to R&D costs for its experimental COVID-19 vaccine, compared with $119.6 million in the same quarter a year ago. Moderna said it plans to conduct two interim analyses for the late-stage trial of the vaccine. Moderna's stock has gained 236.1% so far this year, while the S&P 500 is up 1.2%.
The content delivery network had revenue of $71 million in the third quarter, up 42% from a year ago and in-line with its recent estimate of $70 million to $71 million.
Jim Cramer shares stock market news about buying Shopify, Bed, Bath & Beyond's turnaround plan and Raytheon earnings.
A day after Amazon obtained an emergency order from the Singapore International Arbitration Centre (SIAC) restraining Future Group from going ahead with its deal to sell its retail business to Reliance Retail Ventures, the two Indian companies have said that they are on course to execute the deal. On Oct. 25, Reliance Retail, owned by India’s richest man Mukesh Ambani, said that it has entered the deal to acquire the assets and business of Future Retail under “proper legal advice and the rights and obligations are fully enforceable under Indian law.” Meanwhile, in a separate statement on Oct. 26, billionaire Kishore Biyani-led Future Retail, the company behind brands like Big Bazaar, Easyday, and WH Smith, said the Rs24,713 crore (3.4 billion) deal would “proceed unhindered without any delay.”
Exxon Mobil Corp <XOM.N> on Wednesday kept its fourth-quarter dividend flat at 87 cents a share, signaling 2020 will be the first year since 1982 that the U.S. oil producer has not raised its shareholder payout. The largest U.S. oil producer by volume was caught off guard by the sharp decline in energy prices and demand this year. U.S. prices are off 39% since the start of the year and globally demand has tumbled due to the COVID-19 pandemic.