Raphael Stevens

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    in Finance

    Stocks making the biggest moves premarket: Micron, Pioneer Natural Resources, Tesla and more

    Micron Technology headquarters in Boise, Idaho, March 28, 2021.
    Jeremy Erickson | Bloomberg | Getty Images

    Check out the companies making headlines in premarket trading.
    Micron Technology – Shares jumped more than 6% following news that Samsung Electronics plans to cut memory chip production near term. Many Wall Street analysts said the move could accelerate a recovery within the memory chip industry.

    Pioneer Natural Resources – The stock popped 7% before the bell after the Wall Street Journal reported that Exxon Mobil has held informal talks to acquire Pioneer. Exxon shares fell 0.6%.
    Tesla – The electric vehicle stock fell nearly 2% before the bell. Tesla said it plans to build a “megapack” battery factory in Shanghai and cut vehicle prices again.
    First Republic – Shares fell more than 3% after the regional bank suspended dividend payments on preferred stock.
    Taiwan Semiconductor Manufacturing – U.S.-listed shares of the Taiwan-based semiconductor stock fell nearly 1% before the bell after the company reported a monthly drop in revenue.
    Capital One Financial — Shares of the financial company fell more than 4% in premarket trading after Capital One said in a filing that Walmart is moving to end its credit card partnership. Capital One said in a filing that Walmart is suing to end the agreement, while Capital One maintains that the retail giant does not have a right to end the agreement early.

    Block – The Square and Cash App parent lost nearly 2% in the premarket following a downgrade to market perform from outperform by KBW. The firm said the company is feeling pressure from a growing list of small risks. 
    — CNBC’s Alex Harring and Jesse Pound contributed reporting More

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    in Finance

    Welcome to a new era of petrodollar power

    A pack of hungry headhunters has descended on Europe’s financial quarters. Over coffee in the mid-morning lull, they tempt staffers at blue-chip investment funds with tax-free jobs, golden visas and gorgeous vistas at the firms’ clients: sovereign-wealth funds in the Gulf. A decade in Doha was once a hard sell, but the roles are now juicy enough that many would-be recruits volunteer for desert-bound “business trips” to see headquarters. In October recruiters nabbed the second-in-command at Amundi, Europe’s biggest money manager, to deploy artificial intelligence at the Abu Dhabi Investment Authority (adia), which oversees assets worth $1trn. Now they are chasing others to invest in infrastructure for the Qatar Investment Authority (qia) and oversee finance for Saudi Arabia’s Public Investment Fund (pif). Together these two funds manage another $1trn. War and sanctions have buoyed hydrocarbon prices, meaning fuel exporters are swimming in money. During previous booms they would recycle the proceeds in Western capital markets, snapping up pedestrian, uber-liquid assets via banks based offshore. Underpinning this was an unspoken agreement: America would offer military aid and buy oil from Saudi Arabia and friends, in exchange for which they would plug Uncle Sam’s gaping current-account deficit with petrodollars. The talent-hunting party suggests the deal is crumbling. Uncle Sam, now a major oil exporter, is a less watchful partner. Gulf states, lured by Asia and eager to mend ties with Israel and, lately, Iran, no longer feel compelled to woo the White House. On April 2nd Saudi Arabia and its allies angered America by deepening crude-output cuts to nearly 4m barrels a day, equivalent to 4% of global production, which helped lift prices. They also feel freer to use their mountains of cash however they wish.We estimate that in 2022-23 the current-account surplus of the Gulf’s petrostates may hit two-thirds of a trillion dollars. Yet outside central banks, which no longer collect much of the bounty, the region’s treasure troves are notoriously opaque. To map where exactly the money is going, The Economist has scrutinised government accounts, global asset markets and the deal rooms of firms tasked with investing the windfall. Our investigation suggests that less of the money is returning to the West. Instead, a growing share is being used to advance political aims at home and gain influence abroad, making global finance a murkier system. The Gulf is not alone in enjoying a windfall. Last year Norway, which cranked up gas exports to Europe as Russia cut supplies, earned a record $161bn in tax from petroleum sales, a 150% jump from 2021. Even Russia, under sanctions, saw such revenue rise by 19%, to $210bn. But it is the Gulf states, which benefit from low production costs, spare capacity and convenient geography, that are hitting the jackpot. Rystad Energy, a consultancy, reckons they pocketed $600bn in tax from hydrocarbon exports in 2022. Not all of them are in a position to truly benefit. Governments in Bahrain and Iraq are so bloated that, even as higher revenues flow in, they barely break even. Most of the bounty is instead being accrued by the four biggest members of the Gulf Cooperation Council (gcc): Kuwait, Qatar, the uae and Saudi Arabia. Alex Etra of Exante, a data firm, estimates their combined current-account surplus in 2022 was $350bn. Oil prices have fallen since last year, when Brent crude, the global benchmark, averaged $100 a barrel. Yet assuming it stays near $85—a conservative bet—Mr Etra reckons the four giants could still pocket a $300bn surplus in 2023. That makes a cumulative $650bn dollars over the two years.In the past the majority of this would have gone straight into central banks’ foreign-exchange reserves. Most members of the gcc peg their currencies to the dollar, so they must set aside or invest hard currency during booms. This time, however, central-bank reserves seem to be hardly growing. Their interventions on foreign-currency markets have also been rare, confirming that the usual guardians of state riches are not getting the surplus. So pumpedWhere have the elusive billions gone? Our research finds they have been used in three novel ways by a variety of actors that include national governments, central banks and sovereign-wealth funds. These are to pay back external debt, lend to friends and acquire foreign assets.Start with debt. Between 2014 and 2016 a petroleum glut fuelled by America’s shale boom caused the oil price to fall from $120 a barrel to $30, the steepest decline in modern history. In 2020, as covid-19 lockdowns depressed demand, prices cratered again, to $18 in April. To withstand the earnings shock, Gulf states liquidated some foreign assets; their central banks also sold part of their foreign-currency stash. But that was not enough, so they also borrowed a lot of hard currency on Western capital markets. Now some petrostates are taking advantage of higher prices to shore up their balance-sheets. Abu Dhabi, the uae’s richest emirate, has repaid $3bn since the end of 2021—about 7% of the total outstanding, according to Alexander Perjessy of Moody’s, a ratings agency. Qatar’s load has shrunk by $4bn, or about 4%. Kuwait’s has halved since 2020. This broad deleveraging is a new phenomenon: gcc countries had little debt in the late 2000s, when the previous oil boom got going. Gulf states are also lending a hand to friends in need—the second use of the new oil money. In early 2022 the central bank of Egypt, a big food importer squeezed by high grain prices, received $13bn in deposits from Qatar, Saudi Arabia and the uae. In recent years, Saudi Arabia has also allowed Pakistan to defer payment for billions of dollars in oil purchases. This money is more conditional than in the past. Eager to see at least some of its cash come back, Saudi Arabia recently demanded Egypt and Pakistan implement economic reforms before giving them more help. Some of the Gulf support also comes in exchange for stakes in state-owned jewels these embattled countries are putting up for sale.The real novelty in this regard is Turkey. When squeezed, Ankara used to turn to the imf, or European banks, for emergency-cash injections. Recently, as surging inflation and earthquakes have pushed the country to the brink, it is Gulf states that have been holding the syringe. The support takes various forms. On March 6th Saudi Arabia said it would deposit $5bn at the country’s central bank. Qatar and the uae have also set up $19bn in currency swaps with the institution, according to an estimate by Brad Setser of the Council on Foreign Relations, a think-tank. All three have pledged to participate in Turkey’s forthcoming auctions of government bonds. Qatar is a long-standing ally of Turkey. Saudi Arabia and the uae, which until recently had a frosty relationship with the republic, are now competing for influence. All sense an opportunity to gain sway over Recep Tayyip Erdogan, the country’s president, who faces a tough election in May. The Turkish case sets a precedent. As more neighbours face crunches, bilateral credit will become core to gcc statecraft, predicts Douglas Rediker, a former imf official. Yet for all their geopolitical significance, such loans account for only a fraction of the oil jackpot. That leaves the main escape channel: foreign investments. In past booms the central banks of the world’s two largest petrostates—Russia and Saudi Arabia—did much of the recycling, meaning that the assets they purchased were labelled as reserves. All these countries wanted was stable yields and few surprises. Most often they parked the cash at Western banks or bought super-safe government bonds—so many that, along with China’s, Gulf appetite is credited for helping to create the loose monetary conditions that fed the 2000s sub-prime bubble. Only Qatar, known then as the “cowboy of the Middle East”, did anything more daring: buying a football club here, a glitzy skyscraper there. Today the Russian central bank’s reserves are frozen. And since 2015, when Muhammad Bin Salman (mbs) became de facto ruler, the Saudi central bank has received far less money than pif, which mbs chairs. In just a few years pif and its peers across the region have swelled in size. As hydrocarbons stay expensive, and more of the bounty flows to them, they could grow much bigger still. Everything indicates that their way of recycling riches is very different. It is more adventurous and political, and less Western-centric.Figuring out what Gulf sovereign-wealth funds have been up to is much more difficult than it would be for, say, Norway’s fund. The Gulf institutions do not update their strategy, size and holdings live on their websites, as the one in Oslo does. But there are clues. Data from the Bank for International Settlements, a club of central banks, suggests that, initially, most of the cash was parked in foreign bank accounts. In the Saudi case, such deposits were worth $81bn in the year to September, equivalent to 54% of the current-account surplus over the period, calculates Capital Economics, a consultancy. Perhaps sovereign-wealth funds have been waiting for interest rates to peak before piling into bonds. More likely they are after less conventional assets, which take time to select. Data from the Treasury International Capital system, which tracks flows into American securities, suggest oil exporters have been buying fewer Treasury bonds than would previously have been expected. But they have been hungrier for stocks—and such numbers understate their appetite, because Gulf sovereign-wealth funds often buy American shares through European asset managers. An executive at one such firm says his Gulf clients have topped up their American-stock accounts copiously in recent months. Sovereign-wealth funds largely invest in stocks via index funds, which are low cost and offer diversification. But they also like riskier bets. Today “alternative assets”—private equity, property, infrastructure and hedge funds—represent 23-37% of total assets for the three largest funds in the Gulf, according to Global swf, a data firm. These shares have jumped at the same time as war chests have grown.Although such investments are often done through funds, “direct” investments—private-market deals, or acquisitions of stakes in listed companies—are growing very fast, says Max Castelli of ubs, a bank. pif’s alone reached $18bn in the year to September, against $48bn for more classic “portfolio” investments. Sovereign-wealth funds have also begun to provide debt to finance large takeovers, including by buy-out groups. On April 4th pif disclosed that it had acquired dozens of stakes in private-equity firms themselves. Sovereign-wealth funds can do all this because they now have the ability to manage investments. “Unless we have something extraordinary, we are forbidden from pitching anything to them,” says a European asset manager. adia has cut its workforce from 1,700 to 1,300 since 2021, but new recruits include a group of maths whizzes co-led by an Ivy League professor. The current hiring offensive suggests funds will grow more independent, retaining investment firms only for specific services and market intelligence. Since last year sovereign-wealth funds have been dumping European stocks, to the benefit of America. But locals notice a newer eastward tilt. Gulf funds have created specialist teams to survey China, India and South-East Asia. “This is where they’re going to sell more oil, so they want to invest in industries that will use that oil,” says the boss of a large investment-banking franchise. And at a time when others are walking back from China, nervous of rising tensions with America, they are doubling down. “Our Gulf clients see an enormous opportunity to take space away from Western investors,” says the boss of a private-markets giant. All of which points to an important plank in the sovereign-wealth funds’ new approach: advancing Gulf states’ strategic goals. One such objective has been to project soft power. pif may have lost a big chunk of the $45bn it invested in 2016 in the Vision Fund, a gigantic vehicle for tech investments that has been rocked by bad bets and market shocks. But the mammoth cheque did a great deal to raise Saudi Arabia’s profile among global investors, says one who recently opened an office in Riyadh. Funds are also setting aside capital to shower on neighbours, boosting their regional sway. pif has set up subsidiaries in Egypt, Iraq, Jordan, Bahrain, Oman and Sudan to deploy $24bn in the Arab countries. Greater standing opens up fresh opportunities to invest in firms in “strategic” industries, including renewable energy. In October Mubadala, an Emirati sovereign-wealth fund, splashed $2.5bn on a German offshore-wind developer. qia bought 10% of rwe, a German utility, to help it acquire a solar business in America. These investments are often made with a view to re-importing knowledge or capital. Last year Lucid, an American electric-car maker, some 61% of which is owned by pif, said it would build its first overseas factory in Riyadh. The fund plans to splash $38bn on gaming to try to bring entertainment to the Kingdom. Not all such bets turn out well. Saudi National Bank, owned by pif, lost 80% of its investment in Credit Suisse when the firm was acquired by ubs, undermining the Kingdom’s ambition to steer a global banker. Some sovereign-wealth funds are also being leaned on to invest at home, so as to help economies cut their reliance on oil. pif is bankrolling futuristic Saudi settlements, including Neom, a linear city in the desert, which the Kingdom’s rulers dream will one day be home to a floating industrial complex, global trade hub and luxury holiday resorts.The best illustration of the sovereign-wealth funds’ evolving strategy is Abu Dhabi. Insiders say that adia, the uae’s oldest and starchiest fund, is getting less of the oil windfall than it used to enjoy. Instead, the lion’s share is going to adq, a four-year-old $157bn fund which snaps up firms in energy, food, transport and pharma—industries the emirate deems core to its security. Other cash is going to Mubadala, which had just $15bn in assets in 2008 but now oversees nearly $300bn. Originally heavy on commodities, its portfolio favours renewables and tech. Two-thirds of its investments are in private markets; a quarter are domestic. “There is no limit to their ambition,” says a dealmaker. Blended financeThese shifts are blurring the line between ruling families’ personal wealth and that of the sovereign. The fastest-growing funds tend to be run by royals, or members of their clan. In March Sheikh Tahnoon bin Zayed, the uae’s national-security adviser, was made chairman of adia (he already chairs adq; his brother will soon run Mubadala). More money is going on pet projects, often via special-purpose vehicles. New “family offices”, which manage the private wealth of the mega-minted, have joined the deal fest. Armed with war chests “in the ten digits”, they routinely buy $500m-$1bn stakes in single firms, says a local banker. It is becoming ever harder to see where oil money goes. All this is bad news for the West. That it gets less of the bounty is the smaller problem. A murkier financial system makes it easier for funds to move around unnoticed. Financial sleuths reckon that a share of Russia’s oil earnings is deposited into banks in the Gulf, where it is mixed with dollars owned by others so as to become untraceable. More geopolitically astute petrostates also create the chance for wavering countries, like Turkey, to get financing outside of Western-led institutions, giving them an extra degree of freedom. Two decades ago, when sovereign-wealth funds became fashionable, many in the West worried they might be used to pursue political agendas. At the time, such fears were overblown. They now see more reasonable—but few are paying attention. ■ More

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    Blocked emergency exits and ‘dangerous’ fire hazards: Dollar General again found in violation of federal workplace safety standards

    An OSHA inspection found “dangerous safety hazards,” including blocked emergency exit routes, at a Dollar General in Jersey Shore, Pennsylvania, the Department of Labor said.
    The inspection is one of more than 180 investigations where OSHA has found Dollar General to be jeopardizing worker safety, the DOL said. 
    The discount retailer, which made $37.84 billion in sales in fiscal 2022, was fined $245,544.

    The exterior of a Dollar General convenience store is seen on March 16, 2023 in Austin, Texas.
    Brandon Bell | Getty Images

    Dollar General has again been found in violation of federal workplace safety regulations for “willfully exposing” staff to fire hazards at a Pennsylvania store, the Department of Labor said Friday. 
    Investigators found “dangerous safety hazards,” including blocked emergency exit routes and electrical panels, at a Jersey Shore, Pennsylvania, store during a November inspection that was sparked by a complaint made to the Occupational Safety and Health Administration. 

    The hazards were similar to violations found at other stores operated by the discounter throughout the U.S., and the inspection is one of more than 180 investigations in which OSHA has found Dollar General to be jeopardizing worker safety, the DOL said. 
    In response, a Dollar General spokesperson told CNBC they “regularly review and refine our safety programs, and reinforce them through training, ongoing communication, recognition and accountability.”
    “When we learn of situations where we have failed to live up to this commitment, we work to timely address the issue and ensure that the company’s expectations regarding safety are clearly communicated, understood and implemented,” the spokesperson added. 
    The company, which operates roughly 18,000 stores across the country and employs more than 150,000 workers, has been fined $15 million for safety violations since 2017 and “continues to defy federal workplace safety requirements” despite repeated penalties, the agency said. 
    “Exposing employees to these hazards can be dangerous, especially in an emergency,” OSHA Area Director Mary Reynolds said in a statement. “Dollar General Corp. has a substantial history of the same violations and hazards found at stores all around the U.S. They must end their repeated failures to correct these violations before an emergency turns tragic.”

    Just last week, OSHA said Dollar General was in settlement talks with federal regulators after the retailer was labeled a “severe violator” of workplace safety rules. Dollar General was the first company to be added to the “severe violators” list last fall after OSHA expanded the reach of one of its longstanding safety enforcement programs.
    For the issues at the Pennsylvania store, OSHA issued a citation for one willful violation and one repeat violation with $245,544 in proposed penalties, but the fines are unlikely to have a major impact on the retailer’s balance sheet. 
    In fiscal 2022, which ended Feb. 3, Dollar General reported $37.84 billion in sales and a net income of $2.41 billion. 
    The company has 15 business days to either pay the fines, request an informal conference with OSHA’s area director or contest the findings before the independent Occupational Safety and Health Review Commission. More

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    Major trading platform CEO sees signs of a bond ETF revival

    Demand for bond ETFs appears to be rising.
    According to MarketAxess CEO Chris Concannon, there are signs Treasury ETFs are on the cusp of substantial inflows.

    “We’re about to see what I’d call [a] bond renaissance,” the electronic-trading platform CEO told CNBC’s “ETF Edge” this week. “The Fed is still taking action, so I would expect bond yields overall to remain relatively high and attractive.”
    In late March, the Federal Reserve raised rates by a quarter point — its ninth hike since March 2022. Next Wednesday, Wall Street will get the Fed minutes from the last policy meeting and more clarity on what may come next.
    VettaFi vice chairman Tom Lydon sees a similar pattern.  
    “They’re starting to move back not just into Treasurys, but into corporates and high yields with the idea that we may be able to lock in longer duration and longer payment for those higher rates, [and] with the idea that we’re not going to see higher rates a year from now,” he said.
    VettaFi’s latest data finds international and U.S. fixed income exchange-traded funds saw about $45 billion in inflows since the beginning of the year. Meanwhile, it found corporate bond ETFs saw $6 billion in outflows in the first quarter

    Lydon speculates the renewed interest is caused by investors losing faith in traditional 60/40 investment portfolios.
    “We’ve seen a lot of advisors take a little bit off the table, both in the equity side and the fixed income side,” he said. “So, safety is key until we start to see confidence that the Fed really has some handle on inflation and [there’s] stability in the marketplace.”

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    Question: How are some bars boosting profits? Answer: Trivia nights

    Many bars and restaurants have added trivia to bring in more guests and turn higher profits.
    Some places have clawed their way back to pre-pandemic numbers, although staffing concerns and inflation have slowed growth.
    The popularity of bar trivia is part of the rapid growth of “eatertainment,” a fusion of dining and interactive activities.

    Brooklyn Brewery hosts a Thursday trivia night on March 30.
    Noah Sheidlower | CNBC

    Megan Fitzgerald has always been a trivia fan, but as the director of brand experience at Talea Beer Co. in Brooklyn she wasn’t convinced it would be a good fit for the female-founded brewery.
    In February, she begged friends to come to Talea’s first trivia night, fearing only a few players would show up. Instead, more than 70 patrons joined in.

    When people go out, “they want something that’s enriching and engaging and is more than just taking shots or slamming beers,” Fitzgerald said. “Trivia is easy and fun, good for big groups or couples, and you can find it usually just down the block.”
    After a few weeks of partnering with the NYC Trivia League to host the Wednesday night games, Fitzgerald said Talea trivia nights were bringing in nearly double the revenue of other weeknights, barring special events. The venue has consistently pulled in nearly 20 trivia teams, increasing food and beverage sales throughout the two-hour game. Bar staff get more tips, too, she said.
    Across the country, bars and restaurants are adding trivia events to their weekly or monthly schedules to bring in more guests and turn higher profits. New trivia brands have popped up in big cities and small towns, while some long-standing companies have clawed their way back to pre-pandemic numbers. However, the pace of recovery has been slow as the industry faces staffing struggles, according to trivia company leaders and restaurant owners.
    While some bars craft their own trivia questions, others partner with trivia or entertainment companies, which charge a flat fee to provide questions, infrastructure and hosts. The basic idea is to bring in teams who are vying for prizes, to boost business or use extra space on what might be a typically slower night — and build a new base of regular customers.
    “Trivia is advantageous for us because it’s profitable to have it during those slower times,” said Nick Marking of The Tap Yard in the outskirts of Milwaukee, which has pulled in about 30% more revenue during trivia nights at its five locations.

    “The shows run you a certain amount, and then the prizes also, so you have to look at if it’s worth it to have trivia in the long run considering your profit margin is anywhere between 15% and 25% in the bar world,” Marking said.
    NYC Trivia League, which hosts trivia at over 100 venues across New York City, recently surpassed its weekly event count from early 2020 and the Covid-19 pandemic lockdown. The league charges a flat fee for bars and is free for players.

    Irving Torres-Lopez hosts Trivia Nite at the Brooklyn Brewery. 
    Noah Sheidlower | CNBC

    Cullen Shaw, one of the league’s founders, said teams are larger than they were before Covid — averaging about 3.5 people — when many bars barely held on to their trivia nights. Shaw, who hosts trivia nights at The Gaf East on the Upper East Side of Manhattan, added that the league’s switch to a digital platform from pen and paper has allowed for more efficient games.
    “We fill the place up, and I don’t think that would be the case if they just put on a basketball or hockey game and hoped a crowd would come in,” he said.

    The growth of ‘eatertainment’

    Shaw said the NYC Trivia League has recently brought in venues that never saw themselves as trivia bars, adding over a dozen to its lineup this year alone. Retention rates are up in 2023, and the league has become more selective with venues and hosts.
    “I’m sure there’s a million trivia apps, but there’s just something about a group competition, there’s something about community when like-minded and competitive people get together in a space to play a silly game but everybody understands the rules,” Shaw said.
    According to Mike Kostyo, a “trendologist” at Datassential, the rapid growth of trivia nights is part of a broader move toward “eatertainment,” a fusion of dining and interactive activities ranging from bar trivia to pickleball-dining concepts. Eatertainment has been beneficial for many bars and restaurants given it doesn’t significantly add to labor costs, Kostyo added.
    “You’re having a lot more customers in your venue, so you need more back-of-house, front-of-house staff, but it’s not something where you need to hire somebody to manage that. It’s usually an outside vendor doing the trivia program,” Kostyo said.
    According to a Datassential report from last year, 82% of Americans have been to at least one eatertainment venue, and over 50% of those diners said they were “very interested” in revisiting such an experience. Eighteen percent of respondents said they would visit eatertainment venues more often if they had regular trivia nights.
    “On a trivia night, we are easily doubling our sales from the previous night,” said Will Arvidson, tasting room manager at Brooklyn Brewery, who said the space usually brings in about 150 people for its Thursday trivia event. “It’s sometimes difficult for us to sit people, but we find a way.”

    Brooklyn Brewery has been hosting trivia nights with the NYC Trivia League since 2019.
    Noah Sheidlower | CNBC

    Victoria Dawes and Kristina Cheng, who teamed up on a recent Thursday at Brooklyn Brewery, said they’ve been playing bar trivia for about a decade and agreed it’s more popular now than pre-pandemic. Both said they carve out time each week to bond with friends and show off their random knowledge.
    “I feel like we had lost so much connection with each other, and trivia has been a particularly fun way to have very normal interactions again,” Dawes said.
    The rise of eatertainment comes as inflation compels more Americans to scrutinize how they spend their money.
    According to Datassential’s February Table Stakes Report, 39% of consumers said they’re pulling back on eating out, though Kostyo said cost-conscious people are looking to eatertainment venues for value when they do go out.
    “A lot of consumers, they’re stuck at home all day and they don’t really socialize, so they’re looking for those opportunities from the food service industry to socialize with friends and family again,” Kostyo said.
    “But that doesn’t mean that they’re back in droves,” he added.

    Brooklyn Brewery hosts a Thursday trivia night on March 30.
    Noah Sheidlower | CNBC

    Teams can win cash prizes — as much as $50 or $100 for first place at some bars — or shots, food or free merchandise. Those possible winnings could encourage more spending from players and potentially offset costs for budget-conscious trivia-goers.
    Conrad Corretti, who says his trivia team usually places in the top five at Brooklyn Brewery and other venues, said he’s been more likely to cut back on spending on other weeknights so he can spend “more liberally” at bar trivia.
    “You’re showing up with your group, and you don’t really have to interact with other people, so it’s been a good activity to hang out with people you don’t always see and have a good time,” he said.

    Bumpy road to recovery

    With so many new venues hosting trivia nights, Kostyo cautioned bars may “cannibalize each other” as more businesses try to plant their flag in the trivia space. He’s seen more niche topics at trivia nights pull in specific audiences.
    To attract more consumers, some companies, like Geeks Who Drink, have recruited new quiz masters and brought on client managers to cultivate relationships with venues. Bryan Carr, marketing director for the trivia company, said the company launched a “twitch” quiz still running today, and it maintained its 15 plus-person writing team to keep creative content flowing.
    Bringing back longtime venues and onboarding new ones has been a “slow-moving process,” but the company has continued growing its presence in cities including Denver, Chicago and Austin, Texas. It does full-service pub quizzes in around 650 venues, though that number was around 1,000 pre-pandemic.
    “We try to provide venues with a great starter kit to make sure that their event gets going, and we know that it takes at times two to three months to really build up that consistent following,” Carr said. “They really can see a big difference from before they had trivia and then when they have it on these slower off-nights.”

    On a trivia night, we are easily doubling our sales from the previous night. … It’s sometimes difficult for us to sit people, but we find a way.

    Will Arvidson
    Tasting room manager, Brooklyn Brewery

    Joshua Lieberthal, founder of California-based company King Trivia, which has venues in about 35 states, said he’s seen considerably more trivia nights today than before the pandemic. However, with tighter profit margins, many bars have been forced to do “vastly more” weekly events to stay afloat, which might explain why the company went from around 200 weekly venues in 2019 to about 325 now.
    Still, about 30% to 40% of King Trivia’s pre-Covid clients went out of business, and the rebuilding process has been bumpy.
    “It wasn’t like you just got back your old clients when things restarted — it was starting from scratch,” Lieberthal said. “Amazingly, we were more profitable pre-pandemic than we are today, even though we’re so much larger than we were before.”
    Attendance and retention are back, more or less, to pre-pandemic levels due in part to the company’s expanded sales and customer services teams, he said. Though every week, Lieberthal said another client goes on hiatus or pushes back a launch date due to staffing troubles.
    “Because everyone gets paid more, because it’s hard to staff, you need more people working behind the scenes to make it all happen,” Lieberthal said. “That’s an unfortunate reality that the breakeven point is much higher in this industry than it used to be, but thankfully so many venues want to run shows that it’s doable.”
    For Wisconsin-based America’s Pub Quiz, founded in 2007 by Michael Landmann, everything from staffing to the cost of pencil boxes has slowed the company’s pace of growth compared to before the pandemic.
    By 2020, the company had 205 venues in eight states. It’s now back to around 175 despite having to start from scratch and contend with higher costs of doing business.
    The company created an online system that could handle dozens more teams, but Landmann noticed many venues were unable to keep up with increased demand. Others with ample staff couldn’t find a suitable trivia host.
    Tyson Sevier, general manager at Omaha, Nebraska-based Varsity Sports Cafe, which has partnered with America’s Pub Quiz for a decade, said locations have often been short one or two employees on a busy trivia night. That’s a far cry, he acknowledged, from the “employee horror stories” he said he’s heard from other bar owners in the city.
    Still, trivia nights at Varsity Sports Cafe pull in $2,000 to $3,000 more compared with other weeknights, he said.
    “We have more and more people calling that want to play, so I think that there’s definitely an interest such that only a couple of bars had trivia years ago and now it seems like every bar has it,” Sevier said. “You have to do it now to be competitive.” More

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    in Finance

    Stocks making the biggest moves midday: Costco, Bed Bath & Beyond, AMC, FedEx and more

    A consumer shops in a Costco store in Miami on Sept. 28, 2021.
    Joe Raedle | Getty Images

    Check out the companies making headlines in midday trading.
    Costco — The wholesale retailer’s shares dropped 2.2% after the company announced sales dipped 1.1% year over year in March. Meanwhile, comparable sales growth was positive when excluding changes in gasoline prices and foreign exchange rates, with the fastest growth coming from overseas markets.

    Bed Bath & Beyond — The stock tumbled 8.2% after the retailer proposed a stock split as it attempts to avoid bankruptcy.
    FedEx — Shares of the parcel delivery company were up 0.9% a day after the company announced its DRIVE program, a comprehensive $4 billion cost-cutting restructuring plan. Analysts covering the stock welcomed the news, with Raymond James upgrading shares to outperform from market perform Thursday morning.
    Richardson Electronics — Shares tumbled 15.5% after the electronics company reported a smaller backlog in its third fiscal quarter than it did in the same quarter a year prior. However, the company’s earnings were better than expected.
    Constellation Brands — The beverage company advanced 1.5% on the back of stronger-than-expected corporate earnings. Per-share earnings came in 16 cents ahead of expectations at $1.98, while revenue was in line at $2 billion, according to Refinitiv.
    Levi Strauss — The clothing maker shares lost 16% after CFO Harmit Singh said the annual guidance reflects “a cautious outlook on the macro-environment.” The company beat expectations, reporting earnings of 34 cents per share on revenue of $1.69 billion. Analysts polled by Refinitiv anticipated earnings of 32 cents per share on a revenue of $1.62 billion.

    AMC Entertainment — The meme stock gained 21%. Earlier in the week, shares tumbled after the entertainment company announced a settlement with some of its shareholders. The deal would allow the company to raise more capital and convert preferred shares into common stock. But a U.S. court denied AMC’s request for a quicker conversion of the shares.
    C3.ai — The AI company jumped 8.3%. The company issued a response to allegations made earlier in the week from Kerrisdale Capital that alleged the firm had accounting issues.
    Fox — Shares of the media company fell about 0.9%. Argus downgraded the stock to hold from buy, saying it’s nervous about the ongoing lawsuit with Dominion Voting Systems.
    Wells Fargo – The banking giant rose 2.7% after Raymond James upgraded the stock to strong buy from outperform, noting it expects Wells Fargo to benefit from the recent turmoil in the banking sector.
    Fifth Third Bancorp – The regional bank saw its stock rise 1.2% after KBW upgraded it to outperform due to a discounted valuation on 2024 earnings, despite expectations of better-than-peer return on average tangible common equity. Other mid-size banks also rose, including KeyCorp and Comerica.
    XPO — XPO gained 1% following an upgrade to outperform by BMO. The firm said the logistics company has a significant re-rating opportunity.
    Leslie’s, Pool — Shares of pool company Leslie’s popped 5.1%, while Pool gained 1.4%, after both names were upgraded by Loop Capital to buy from hold. The firm said its latest pool survey indicated a 2023 outlook that was better than expected and said the pullback in both stocks offer a good buying opportunity.
    New Relic — Shares rose 3.3% after DA Davidson initiated coverage of the stock with a buy rating, noting the cloud computing company is closing the gap with peers.
    Pinterest — Shares of the image sharing platform rose more than 3.4% after a duo of bullish analyst calls on Wall Street. Raymond James on Thursday initiated Pinterest as outperform, saying it sees “steady user growth.” Meanwhile, UBS reiterated its buy rating on Pinterest ahead of the earnings season, saying there could be potential upside surprise.
    Lumentum — Shares slid 9.7% after the company pulled back revenue guidance for the third quarter, citing a network equipment manager accounting for around 10% of last quarter’s revenue said they would not take shipments they originally projected needing. Craig-Hallum downgraded the stock to hold from buy and Rosenblatt pulled its rating to neutral from buy following the guidance cut.
    Mosaic — Shares dipped more 5.6% after JPMorgan downgraded Mosaic to neutral from overweight, and cut its price target on the stock. The Wall Street firm said earnings at the fertilizer company are slowing faster than expected.
    — CNBC’s Hakyung Kim, Sarah Min, Michelle Fox, Tanaya Macheel and Yun Li contributed reporting More

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    Michael Jordan sneakers, Kobe Bryant gear lead blockbuster Sotheby’s auction

    The two-part auction, dubbed “Victoriam,” features memorabilia from Tom Brady and Kobe Bryant, among others.
    Bidding for the auction closes April 11.
    Michael Jordan’s Air Jordans from Game 2 of the 1998 NBA Finals are expected to net somewhere between $2 million and $4 million.

    Michael Jordans 1998 NBA Finals Air Jordan XIIIs sneakers are displayed during a press preview in New York on April 6, 2023 at Sothebys for the upcoming auction Victoriam, a special two-part curated collection of sports artifacts.
    Timothy A. Clary | AFP | Getty Images

    Michael Jordan’s shoes from Game 2 of the 1998 NBA Finals could be yours — if you have a couple million dollars to spare. 
    Sotheby’s is hosting a two-part auction of game-worn sports memorabilia, with Jordan’s signed sneakers serving as the cornerstone for an stacked lineup of rare items. 

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    The game-worn Air Jordans are estimated to sell for somewhere between $2 million to $4 million. Currently, the price to beat is a cool $1.8 million.
    If bidding climbs much higher, the auction could become record-breaking. When Kanye West’s Air Yeezy samples sold for $1.8 million in a private sale in 2021, they were estimated to be the most expensive sneakers sold to date.
    The auction, dubbed “Victoriam,” is a treasure trove for wealthy sports fans, featuring everything from Tom Brady’s 2004 uniform to the shooting shirt Kobe Bryant wore the afternoon of his historic 81-point performance in January 2006.  

    Kobe Bryants 2004 Los Angeles Lakers warmup jacket is displayed during a press preview at Sothebys in New York on April 6, 2023 for the upcoming Victoriam auction, a special two-part curated collection of sports artifacts. (Photo by TIMOTHY A. CLARY / AFP) (Photo by TIMOTHY A. CLARY/AFP via Getty Images)
    Timothy A. Clary | Afp | Getty Images

    Other notable items for auction include the late Brazilian soccer icon Pelé’s 1975 debut jersey for the New York Cosmos, which helped raise soccer’s profile in the United States. 

    Brazilian soccer star Peles 1975 New York Cosmos ‘Triumphant Debut’ match-worn jersey is displayed is displayed during a press preview at Sothebys in New York on April 6, 2023 for the upcoming Victoriam auction, a special two-part curated collection of sports artifacts. (Photo by TIMOTHY A. CLARY / AFP) (Photo by TIMOTHY A. CLARY/AFP via Getty Images)
    Timothy A. Clary | Afp | Getty Images

    The football used for the game-winning field goal during this year’s Super Bowl between the Kansas City Chiefs and Philadelphia Eagles is also being auctioned.

    Roger Federers 2011 French Open match-worn and signed sneakers are displayed during a press preview at Sothebys in New York on April 6, 2023 for the upcoming Victoriam auction, a special two-part curated collection of sports artifacts. (Photo by TIMOTHY A. CLARY / AFP) (Photo by TIMOTHY A. CLARY/AFP via Getty Images)
    Timothy A. Clary | Afp | Getty Images

    Other items for auction include various memorabilia from tennis legend Rafael Nadal, NBA stars Carmelo Anthony and Luka Doncic, and others. Bidding closes Tuesday. More

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    Walmart will add thousands of EV charging stations to stores by 2030

    Walmart announced Thursday it plans to add electric vehicle charging stations to thousands of U.S. stores by 2030.
    The big-box retailer said it’s in the process of identifying suppliers, though it plans to own and operate the EV charging stations in its national network.
    Walmart’s more than 4,700 stores and 600 Sam’s Clubs are located within 10 miles of around 90% of Americans.

    Walmart logo is seen on the shop in Streator, United States on October 15, 2022. (Photo by Jakub Porzycki/NurPhoto via Getty Images)
    Jakub Porzycki/ | Nurphoto | Getty Images

    Walmart announced Thursday it plans to add electric vehicle charging stations to thousands of U.S. stores by 2030.
    The company announced it would expand its EV fast-charging network to Walmart and Sam’s Club locations across the country, adding to the nearly 1,300 EV stations currently in operation at 280 of the company’s locations. Walmart did not provide more detail on the investments.

    The big-box retailer said it’s in the process of identifying suppliers. It plans to own and operate the EV charging stations in its national network. The company expects an average of four chargers to be installed at each participating store, Reuters reported.
    In the past, Walmart has worked with EV charger providers EVgo and Electrify America. The company has grown its network substantially over the last two years.
    “Easy access to on-the-go charging is a game-changer for drivers who have been hesitant to purchase an EV for concerns they won’t be able to find a charger in a clean, bright and safe location when needed,” Vishal Kapadia, senior vice president of energy transformation, said in a statement.
    The planned expansion would make EV ownership more reliable, Kapadia said. Walmart’s more than 4,700 stores and 600 Sam’s Clubs are located within 10 miles of around 90% of Americans, according to the company.
    The Biden administration recently announced an investment of over $7.5 billion to launch a national charging network, particularly in lower-income and rural communities. This will likely boost EV sales, which accounted for 7% of new U.S. vehicle registrations in January. More