Shares of WeWork Inc.
WE,
slumped 13.4% in premarket trading, after they enjoyed a record rally in the previous session despite no news reported. The troubled flexible work space provider’s stock had rocketed 87.0% on Tuesday, and had soared 116.6% in two days, to snap a five-session losing streak in which it tumbled 43.9% to close Friday at a split-adjusted record low of $2.65. The company has not responded to a MarketWatch request on Tuesday for comment on the stock’s rally. WeWork shares have plummeted 90.0% year to date through Tuesday, while the S&P 500
SPX,
has gained 16.2%.
EIA reports weekly gains in U.S. crude, gasoline and distillate supplies
The Energy Information Administration on Wednesday reported that U.S. commercial crude inventories rose by 4 million barrels for the week ended Sept. 8. On average, analysts expected a crude inventory decline of 1 million barrels, according to a survey conducted by S&P Global Commodity Insights. The EIA report also revealed supply increases of 5.6 million barrels for gasoline and 3.9 million barrels for distillates. Analysts had forecast a weekly inventory decline of 1.4 barrels for gasoline, while distillate supplies were expected to be flat for the week. Crude stocks at the Cushing, Okla., Nymex delivery hub down by 2.4 million barrels for the week, the EIA said. Oil futures were little changed, with October West Texas Intermediate crude
CLV23,
up 4 cents, or nearly 0.1%, at $88.88 a barrel on the New York Mercantile Exchange. Prices traded at $88.78 before the supply data.
U.S stocks open slightly higher after CPI inflation report
U.S. stocks opened slightly up Wednesday as investors parsed fresh data on inflation in August. The Dow Jones Industrial Average
DJIA,
was trading 0.2% higher soon after the opening bell, while the S&P 500
SPX,
edged up 0.2% and the Nasdaq Composite
COMP,
rose 0.2%, according to FactSet data, at last check.
Inflation rose 0.6% in August, as measured by the consumer-price index, according to a report Wednesday from the Bureau of Labor Statistics. That was in line with forecasts from economists polled by the Wall Street Journal, although so-called core inflation came in slightly hotter than anticipated in August. Core CPI, which excludes energy and food prices, increased 0.3% last month.
Over the past year core CPI climbed 4.3%, as forecast, while easing from a year-over-year rate of 4.7% in July. Headline inflation increased 3.7% in the 12 months through August, from 3.2% in the year through July.
Cinemark launces Private Swiftie Parties to watch Taylor Swift’s New Eras concert film
Cinemark Holdings Inc.
CNK,
is offering Private Swiftie Parties, where fans can hire a private auditorium to watch the star’s forthcoming “Taylor Swift The Eras Tour” concert film, which hits theaters Oct. 13. The company describes the parties as the “ultimate VIP event” to experience the film. “We are wonderstruck by this event’s sensational ticket sales and are thrilled to add a new era to our fan-favorite Private Watch Parties with our Private Swiftie Parties,” said Wanda Gierhart Fearing, Cinemark Chief Marketing and Content Officer, in a statement. The Private Swiftie Parties are for sale at participating Cinemark locations for up to 40 fans for $800, the company said. Interest in the film is extremely high ahead of its release. Cinemark rival AMC Entertainment Holdings Inc.
AMC,
recently announced that the concert film had shattered the company’s record for single-day advance ticket sales, with $26 million in ticket revenue sold on Aug. 31.
Citigroup’s stock rises as it reorganizes into a ‘streamlined geographic structure’
Citigroup Inc.’s
C,
stock was up 0.8% in premarket trading on Wednesday after the megabank said it would reorganize into a flatter structure with leads of its five major business units reporting directly to Chief Executive Jane Fraser. The bank did not disclose any headcount reduction figures but said it’s “committed to retaining top talent and supporting employees who are leaving the company.” Fraser said the changes will eliminate unnecessary complexity and “increase accountability for delivering excellent client service.” The leaders include Shahmir Khaliq (services), Andrew Morton (markets), Peter Babej (head of banking on an interim basis), Andy Sieg (wealth) and Gonzalo Luchetti (U.S. personal banking).
Controlled environment agriculture construction company Urban-gro’s stock rallies as it wins cannabis contracts
Urban-gro Inc.
UGRO,
stock was up 12.6% in premarket trading on Wednesday after the controlled environment agriculture construction specialist said it won $3 million in contracts from four clients in the cannabis space. The contracts include architecture and design, engineering, and equipment integration services in the U.S. and Europe. Urban-gro plans to recognize revenue for these projects over its next three quarters.
Moderna, American Air and more
A member of the Mississippi National Guard receives a dose of the Moderna COVID-19 vaccine in his arm, in Flowood, Mississippi.
Rogelio V. Solis | AP
Check out the companies making headlines before the bell.
Moderna — Moderna shares rose more than 3% in early trading after the Centers for Disease Control and Prevention recommended updated Covid vaccine shots for all Americans ages 6 months and older. Pfizer shares added 0.2%.
Apple — Apple dipped 0.4% before the bell, one after debuting its latest iPhone model and multiple updates, including a new Apple Watch and revamped AirPods.
Ford — Shares of the automaker rose 1.5% premarket after UBS analyst Joseph Spak initiated research coverage with a buy rating and a $15 price target implying 21% upside. Spak said Ford’s pro business, its commercial segment, should show more resiliency than expected and potentially mitigate downsides from issues in blue and electric car models.
BP — Shares rose more than 1% before the open one day after BP CEO Bernard Looney resigned a little more than three years after assuming the post. BP shares in the U.S. closed down 1.3% Tuesday, reversing an early 2.9% gain.
Xpeng, NIO — U.S.-based shares of Chinese electric vehicle makers Xpeng and NIO fell more than 3% and 2%, respectively, after the European Union said it’s considering imposing anti-subsidy tariffs on Chinese imports to protect domestic producers.
American Airlines, Spirit Air — American fell 3.1% after lowering its third-quarter earnings guidance, citing higher fuel prices and costs from a new labor agreement, according to a filing. The airline now expects per-share earnings in the range of 20 cents to 30 cents, lower than prior guidance of 85 cents to 95 cents. Spirit dropped 3.9% after cutting its summer profit forecast owing to higher costs.
— CNBC’s Samantha Subin, Pia Singh, and Sarah Min contributed reporting
The 3 Most Undervalued Dividend Stocks to Buy in September 2023
With interest rates soaring around the globe, many investors have begun to hunt for undervalued dividend stocks to protect their portfolios.
Dividend stocks are those that take some percentage of their income and pass it on to shareholders. It’s one of the many avenues making up shareholder returns. But while a juicy dividend yield can sound extremely enticing, watch out for a few pitfalls as you go searching for income stocks.
The first is whether the yield is reasonable. A company’s dividend yield is the dividend per share compared against the price per share. An ultra high dividend yield can mean one of two things. Either the dividend per share is quite high, or the price per share is quite low. When a dividend yield is extremely elevated, it tends to be the result of a depressed share price.
If the share price is relatively steady but the dividend yield is off the charts, that’s not necessarily a sign that you’ve found the creme-de-la-creme of undervalued dividend stocks either. When companies give part of their income back to shareholders, its typically because the rate of return they expect to achieve with that cash is below the amount shareholders might be able to fetch.
This is the reason many of the market’s most popular dividend stocks are in mature, established companies.
Unilever (UL)
Source: BYonkruud / Shutterstock.com
Unilever (NYSE:UL) is not only a good income play, it’s also somewhat of a value play given its depressed share price lately.
It’s been a hard few years for consumer goods maker Unilever. Shareholder pressure coupled with a failed takeover effort tanked investor sentiment. But with a new CEO at the helm, Unilever could be ready for a new lease on life. With a dividend yield just shy of 4%, shareholders should come along for the ride.
Unliever owns some of the world’s most recognizable brands, from Ben & Jerry’s to Dove. This brand power allows Unilever to charge a premium for its products, a valuable superpower in the current environment. UL has been working to protect margins by passing on rising input costs to consumers, a strategy that should keep cashflow healthy.
Consumers can stomach only a limited amount of price hikes, however. So management will be walking a tightrope as it continues offsetting cost pressures. Worries about volumes taking a hit are keeping the group’s share price depressed. However, if inflation is starting to ease as expected, now could be a good time to snap up UL shares.
British American Tobacco (BTI)
Source: DutchMen / Shutterstock.com
As the world’s second largest tobacco company, British American Tobacco (NYSE:BTI) has a strong position within the market. Lower-than-average valuations make many cigarette makers excellent picks among undervalued dividend shares.
The tobacco market will always be off-limits to socially conscious investors, so valuations in the sector have a ceiling. Admittedly, it’s a declining market. The group, like its peers, has been able to offset falling volumes with price increases which has kept revenue growth ticking over. Margins are also healthy, which has allowed the group to reward shareholders with a generous 10.5% dividend yield.
For future growth, British American Tobaccco has its hopes pinned on next generation products like heated tobacco and vapes. It’s been generally accepted that these forms of tobacco consumption are safer than traditional cigarettes, but given their newness, concerns remain regarding long-term impacts. These parts of the business are still in the early stages of growth and for now, loss-making.
While it’s important to acknowledge that tobacco use is declining, it’s also worth noting that it’s likely to disappear altogether. With that in mind an industry leader like British American Tobacco is worth considering if income is your priority.
McDonalds (MCD)
Source: Gargantiopa / Shutterstock
McDonalds (NYSE:MCD) has been around since 1940 and weathered several economic downturns. The group has also maintained a shareholder-friendly dividend policy, increasing payouts every year since the 1990’s.
McDonalds’ business model is an enviable cash cow, underpinning its reliable dividend payouts. Most of the restaurants are franchised, so that means the group isn’t responsible for running costs. This means cash conversion is high. Last year the group had $5.5bn in free cash flow swimming around, leaving plenty of space to reward shareholders with dividends and buybacks.
McDonald’s has been stung by rising prices just like everyone else. However, MCD has been able to protect margins. A forward-looking strategy is positioned to improve the their online presence and build out delivery and drive-thru options as well. All these positives come with a price tag, and McDonalds shares don’t come cheap.
Yet, the group still has more to deliver which should be supportive of earnings growth in the future. A strong share price is reflected in its yield of 2.2%, but the McDonalds is worth considering to round out an income portfolio.
On the date of publication, Marie Brodbeck held BTI. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
3 Reasons Why We Like Disney Stock
Wallbox’s stock jumps after teaming up with Best Buy to sell Pulsar Plus home EV charges
Shares of Wallbox N.V.
WBX,
jumped 4.8% in premarket trading Wednesday, after the maker of electric vehicle charging systems said it was teaming up with Best Buy Co. Inc.
BBY,
to sell its Pulsar Plus EV chargers nationwide. The Pulsar Plus is compatible with all EVs, including those made by Tesla Inc.
TSLA,
when used with an adapter. The chargers will be available on BestBuy.com and in select Best Buy stores. WallBox’s stock had edged up 0.4% on Tuesday to snap a five-day losing streak in which it tumbled 12.6% to close Monday at a four-month low. The stock has lost 24.3% year to date through Tuesday, while shares of EV charging network companies Blink Charging Co.
BLNK,
have dropped 65.3% and of ChargePoint Holdings Inc.
CHPT,
have fallen 40.5%. The S&P 500
SPX,
has gained 16.2% this year.