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    Cramer’s lightning round: I say thumbs up to MP Materials

    Monday – Friday, 6:00 – 7:00 PM ET

    It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

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    MP Materials Corp: “I say, thumbs up, MP Materials.”

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    2 hours ago

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    RPC Inc: “I want you to hold [onto] it.”

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    Marvell Technology Inc: “You don’t want to buy until it reports. After it reports, we’re going to take a solid look at it. … If you do own it now, you’ll do just fine.”

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    Li Auto Inc: “Listen to [Tesla CEO] Elon Musk on the conference call. He likes the Chinese automakers. Who am I to go against the smartest man in the world?”

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    Jim Cramer credits strong earnings from Tesla and United Rentals for helping lift the market

    Monday – Friday, 6:00 – 7:00 PM ET

    CNBC’s Jim Cramer said that Thursday’s rally is thanks to a batch of strong company earnings.
    He went over several examples of corporate news and earnings reports that fueled Thursday’s gains, including Chevron, Tesla and United Rentals.

    CNBC’s Jim Cramer said that Thursday’s rally is thanks to a batch of strong company earnings.
    “I’ve said over and over again that during earnings season, what matters is companies and the CEOs with the smarts to direct them,” he said.

    Stocks rose on Thursday as investors digested the latest batch of earnings and new gross domestic product data showing the U.S. economy grew by a higher-than-expected 2.9% in the fourth quarter.
    Cramer said that contrary to what many might believe, the economic data didn’t drive the trading session’s rallies.
    “That’s a classic misdirection play — just totally wrong. It’s stale. It doesn’t count. We’re in earnings season, for heaven’s sake,” he said, adding, “Stocks did well today because many of them delivered good numbers.”
    He went over several examples of corporate news and earnings reports that fueled Thursday’s gains:

    “It’s very confusing if you’re on permanent negative autopilot because you only pay attention to the [Federal Reserve]. If you watched the individual companies, these moves would be a lot less surprising,” Cramer said.

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    FDA advisors recommend replacing original Covid vaccine with bivalent omicron shots for all doses

    The 21 members of the FDA committee unanimously backed the proposal, agreeing that it would simplify the U.S. Covid vaccination program.
    Currently, Pfizer’s and Moderna’s omicron shots are only authorized as a booster, while the first two doses are still their old shots based on the original Covid strain.

    The new COVID-19 booster which includes protection for Omicron at AltaMed Health Services in South Gate on Thursday, October 6, 2022.
    Sarah Reingewirtz | MediaNews Group | Los Angeles Daily News via Getty Images

    The Food and Drug Administration’s independent advisory committee on Thursday recommended replacing Pfizer and Moderna’s original Covid vaccine used in the U.S. for everyone’s first two immunizations with the new bivalent omicron shots.
    If the FDA accepts the advisors’ recommendation, the U.S. would likely phase out the companies’ vaccines developed in 2020 against the original Covid-19 strain that emerged in Wuhan, China.

    Instead, the drugmakers’ bivalent omicron shots that target the omicron BA.5 subvariant as well as the original strain would be used for the entire vaccination series.
    Currently, Pfizer’s and Moderna’s omicron shots are only authorized as a booster, while the first two doses are still their old shots based on the original Covid strain.
    The committee’s 21 members unanimously backed the proposal, agreeing that it would simplify the U.S. Covid vaccination program.
    “This is absolutely the right thing to do for the program. It will make things simpler,” said Dr. Melinda Wharton, a senior official at the National Center for Immunization and Respiratory Diseases, a division of the Centers for Disease Control and Prevention.
    The proposed change would only affect people who have not yet received their two-dose primary vaccination series. No timeline was provided on when this switch might occur if the FDA accepts the panel’s nonbinding recommendation.

    The recommendation to adopt a single formulation across all doses comes as the FDA is trying to streamline Covid vaccination so that the system is easier for the public and health-care workers to understand.
    “The overall thought here is that getting towards one vaccine composition for everyone will ultimately be much, much more helpful,” said Dr. Peter Marks, who heads the FDA’s vaccine division.
    The FDA has proposed moving to a system that resembles how the agency updates and rolls out flu shots every year. The agency would select a Covid vaccine formulation in June to target the variant that is expected to dominate in the fall and winter. That formulation would be used by all manufacturers for all doses.
    Under the proposal, most people who have been exposed to the Covid spike protein twice, either through vaccination or infection, would only receive one Covid shot a year moving forward. Older adults and people with compromised immune systems may need two shots because they don’t mount as strong of an immune response.
    Marks said the goal is to roll out updated Covid and flu vaccines at the same time in the fall to make it easy for people to get their shots in one visit. This could help boost vaccine coverage and reduce the burden on hospitals as they simultaneously confront circulation of Covid, flu and respiratory syncytial virus, he said.
    “The advantage of this also is if we can see the influenza vaccine and the Covid-19 vaccine occurring at the same visit, it facilitates a vaccination program that may lead to more people getting vaccinated and being protected and reducing the amount of disease we see,” Marks told the committee members.
    But committee member Dr. Cody Meissner, a pediatrician at the Geisel School of Medicine, said it is too early to say whether annual vaccination for Covid is needed.
    Panel member Dr. Paul Offit, a vaccine expert at the Children’s Hospital of Philadelphia, said flu and Covid differ in important ways when it comes to vaccination.
    If the flu vaccine doesn’t match the dominant variant, you don’t have much protection, Offit said. But the Covid vaccines are still protecting well against severe illness, he said.
    “I think we need to define what we want from this vaccine,” said Offit, who has repeatedly emphasized the prevention of severe disease rather than mild illness.

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    Hasbro warns of weak holiday quarter results, cuts 15% of its workforce

    Hasbro will cut 1,000 employee positions, around 15% of its total workforce.
    The toymaker warned of weak holiday quarter results.
    Wizards of the Coast, which includes Dungeons and Dragons, will remain a bright spot, the company said.

    Game maker Hasbro
    Justin Sullivan | Getty Images

    Hasbro said Thursday it would eliminate around 1,000 employee positions and warned of weak holiday-quarter results.
    Shares of the toy maker fell more than 6% in extended trading.

    “Despite strong growth in Wizards of the Coast and Digital Gaming, Hasbro Pulse, and our licensing business, our Consumer Products business underperformed in the fourth quarter against the backdrop of a challenging holiday consumer environment,” said Hasbro CEO Chris Cocks.
    The layoff of around 15% of its global workforce comes as the company seeks to save between $250 million and $300 million annually by the end of 2025.
    Hasbro said it expects fourth-quarter revenue, which includes the holiday season, to reach $1.68 billion, down 17% compared to the year-earlier period. Estimates had called for Hasbro to reach $1.92 billion during the quarter, according to data from Refinitiv.
    For the full year, the company foresees revenue hitting $5.86 billion, down 9% compared to 2021.
    “While the full year 2022, and particularly the fourth quarter, represented a challenging moment for Hasbro, we are confident in our Blueprint 2.0 strategy, unveiled in October, which includes a focus on fewer, bigger brands; gaming; digital; and our rapidly growing direct to consumer and licensing businesses,” Cocks said.

    The company has faced revenue woes in recent quarters, as it contends with tough comparisons with pandemic-fueled toy sales, inflation weighing on consumers wallets and high levels of inventory.
    Wizards of the Coast, which includes Dungeons and Dragons, Magic: The Gathering and digital gaming, will remain a bright spot, the toymaker said. The company expects the division to have generated $339 million in revenue during the fourth quarter, up 22% compared to last year, and reach $1.33 billion in revenue for the full year, up 3% from 2021.
    The division recently came under fire from fans after Hasbro attempted to rewrite a two-decade-old open game license for Dungeons and Dragons in order to boost revenue. Earlier this month, the Rhode Island-based toymaker postponed its update of its licensing terms in order to address mounting concern from the D&D community, which largely viewed the proposed changes as overreaching and unfair to third-party content creators.
    Hasbro said it still intends to create a new open game license, or OGL, but that it will not include a royalty structure or give itself access to intellectual property made by third-party content creators.
    The company is set to report its fourth-quarter earnings Feb. 16.

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    Luxury retailer LVMH is optimistic as it sees Chinese shoppers and tourists returning

    Luxury giant LVMH said China’s wealthy consumers have started returning to stores after the country’s reopening.
    LVMH reported its second straight year of record sales and profits, with 2022 revenue up 23%.
    The company’s cautious optimism echoes positive comments earlier this month from Burberry and Swatch.

    Bernard Arnault, Chairman and CEO of LVMH Moet Hennessy Louis Vuitton, attends a news conference to present the 2022 annual results of LVMH in Paris, France, January 26, 2023.
    Gonzalo Fuentes | Reuters

    Luxury giant LVMH said China’s wealthy consumers have started returning to stores after the country’s reopening and it remains optimistic about the year ahead.
    “We have every reason to be confident, indeed optimistic on China,” LVMH CEO Bernard Arnault said during the company’s earnings presentation. “In Macao, where the Chinese can now travel, the change is quite spectacular. The stores are full and it’s really come back very strong.”

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    Arnault added that if the “green shoots” the company sees in China continue to grow, “it will be an excellent year.”
    LVMH reported its second straight year of record sales and profits, with 2022 revenue up 23% to 79.2 billion euros, or about $86.2 billion. Profits grew 17% to 14 billion euros, or about $15.2 billion.
    The return of the Chinese luxury consumer is the key question for the global luxury industry in 2023, as the U.S. and European economies slow. Shares of LVMH, Richemont, Kering and other big luxury names have soared this month on hopes for a rapid bounce back in China’s luxury spending, which accounted for a third of all luxury sales before the pandemic shifted consumer spending habits.
    LVMH Chief Financial Officer Jean-Jacques Guiony cautioned that while the rebound has been strong in January, “we’re not back to the levels of 2019. We’re a long way from that.”
    Yet LVMH’s cautious optimism echoes positive comments earlier this month from Burberry and Swatch.

    Burberry cited “very promising signs in China” after a difficult December, while Swatch said its “sales growth in January in China reinforces the Group’s expectation to aim for a record year in 2023.”
    Some analysts say China’s reopening could mark a “big bang” moment for luxury — driving sales in the country as well as in Europe, as Chinese tourists return to Paris, Milan and London this summer and shop for luxury goods.
    “If they resume travel and they head for the countries that attract them, they will probably come to France, and we are ready to receive them,” Arnault said.
    Bain & Co estimates that global luxury sales grew 22% in 2022, to over $380 billion, with the U.S. replacing China as the top market. Even if China rebounds, growth in luxury sales is likely to be slower this year. Bain estimates global sales could grow between 3% and 8% in 2023, depending on China’s reopening and the U.S.
    There are already signs that the U.S. market is slowing. LVMH said revenue grew 7% in the U.S. during the fourth quarter, a sharp deceleration from growth of 26% and 22% in the first two quarters of the year.
    Guiony, however, said the declines are largely due to favorable comparisons in the first two quarters and the surge in Americans taking advantage of a strong dollar to buy luxury goods in Europe over the summer. He said sales at Sephora — the beauty retailer owned by LVMH — showed no signs of consumer weakness in the U.S. and had “high growth in the fourth quarter.”
    “We’re not concerned,” Guiony said.

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    Stocks making the biggest moves after hours: Intel, Visa, Hasbro and more

    The Intel Corporation logo is seen at a temporary office during the World Economic Forum 2022 (WEF) in the Alpine resort of Davos, Switzerland May 25, 2022.
    Arnd Wiegmann | Reuters

    Check out the companies making headlines in after-hours trading.
    Intel — Shares of Intel plunged 8.2% after the company reported earnings that missed on the top and bottom lines. The company reported adjusted earnings of 10 cents per share on $14.04 billion in revenue where analysts expected 20 cents per share on revenue of $14.46 billion, per Refinitiv. Intel also gave weak guidance, forecasting a net loss in the first quarter.  

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    Visa — Visa shares rose 1.5% after the company reported an earnings beat. The digital payments company reported adjusted earnings per share of $2.18 and $7.94 billion in revenue, more than Wall Street’s expectations of adjusted earnings of $2.01 per share and $7.70 billion in revenue, per Refinitiv.
    Hasbro — Shares slid 7.8% after the toymaker announced it was cutting about 1,000 jobs, or 15% of its workforce. The company also warned of a weak fourth quarter.
    KLA Corporation — Shares of KLA Corporation, a semiconductor manufacturer, shed 4.9% even though the company reported earnings that beat analysts’ expectations on the top and bottom lines, according to Refinitiv. The company gave a forward guidance that was weaker than expected for its fiscal third quarter, which weighed on shares.

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    Bed Bath & Beyond warns it can’t pay down debts, defaults on credit line

    Bed Bath & Beyond said Thursday it doesn’t have enough cash to pay down its debts.
    The company said it has defaulted on its credit line with JPMorgan, warning once again of a potential bankruptcy.
    The update comes several weeks after the retailer issued a bankruptcy warning.

    Signage is seen through an overturned shopping cart outside a Bed Bath & Beyond Inc. store in Greendale, Wisconsin.
    Daniel Acker | Bloomberg | Getty Images

    Bed Bath & Beyond said Thursday it doesn’t have enough cash to pay down its debts and it has defaulted on its credit line with JPMorgan, warning once again of a potential bankruptcy.
    Shares of Bed Bath plunged Thursday afternoon, prompting brief trading halts. The stock closed 22% down with a market cap of about $295 million.

    In a securities filing, the struggling home goods retailer said it “does not have sufficient resources to repay the amounts under the Credit Facilities and this will lead the Company to consider all strategic alternatives, including restructuring its debt under the U.S. Bankruptcy Code.”
    Bed Bath is attempting to cut costs by lowering capital expenditures, closing stores and negotiating lease deals with its landlords but warned “these measures may not be successful.”
    The latest filing is another sign that time is running out for Bed Bath, as sales lag and debts pile up for the cash-strapped retailer. It comes at a time that inflation is weighing on consumers’ wallets and shoppers put their discretionary dollars towards experiences, like dining out or booking trips, over home goods.
    Amid tough macro challenges, Bed Bath’s vendors tightened their credit terms and cut limits while requiring earlier payments during its fiscal second quarter, which prevented the company from properly stocking its inventory ahead of the holiday season, the filing states. Some vendors required prepayments, the company said.
    The company owes $550 million under its asset-backed loan with JP Morgan and $375 million to lender Sixth Street after expanding its credit facility last August.

    Bed Bath’s debt load also includes nearly $1.2 billion in unsecured notes, which have maturity dates spread across 2024, 2034 and 2044, and have been trading at distressed levels. The company said previously it wasn’t able to refinance portions of that debt less than a month after it told investors it planned to take out more credit to pay down its obligations.
    The company has been burning through cash in recent quarters. It used $890 million in cash during the nine months ended Nov. 26, the company reported Thursday. As of that date, Bed Bath said it had $225.7 million remaining in cash.
    The update Thursday comes several weeks after the retailer issued a “going concern” notice that it may not be able to cover its expenses following a worse-than-expected quarter. 
    Bed Bath has been exploring its options in recent weeks. The retailer has been in discussions to nail down financing that would keep it afloat if it were to file for bankruptcy, CNBC previously reported.
    The company also is in the midst of a sale process in hopes of keeping its namesake chain and Buybuy Baby business alive. In addition, the company has been preparing for a potential chapter 11 filing in the U.S. Bankruptcy Court in New Jersey, CNBC previously reported.

    Bed Bath & Beyond’s stock has fallen roughly 80% in the last 12 months.

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    Stocks making the biggest moves midday: Chevron, Tesla, Seagate Technology, United Rentals and more

    A charging station is seen at the Tesla Corporate Headquarters on January 03, 2023 in Travis County, Texas.
    Brandon Bell | Getty Images

    Check out the companies making headlines in midday trading.
    Seagate Technology — Shares of the data storage company surged 10.9% a day after Seagate posted beats on the top and bottom line for its fiscal second quarter. Seagate reported earnings of 16 cents per share on revenue of $1.89 billion. Analysts called for earnings of 10 cents per share on $1.83 billion in revenue, according to Refinitiv.

    Chevron – Shares of the energy giant popped 4.9% a day after the company announced a $75 billion buyback and said that it would boost its dividend payout.
    Tesla — Shares of the electric vehicle company soared 11% a day after Tesla posted quarterly results that were better than anticipated. The company beat analysts’ expectations on the top and bottom lines, according to Refinitiv.
    Albemarle — Shares gained 3.1% after Piper Sandler initiated coverage of the stock at overweight, calling the stock a “lithium pure play on a going forward basis.”
    United Rentals — The equipment rental company’s shares jumped 9.9% a day after it posted its latest quarterly results. Though United Rentals missed analysts’ expectations for per-share earnings, it was in-line with Wall Street’s forecasts for revenue, per FactSet. The company forecasted 2023 revenue to range between $13.7 billion and $14.2 billion, surpassing analysts’ estimates, according to FactSet.
    EVgo — The electric charging company slid 0.3% following a downgrade by JPMorgan to neutral from overweight. The firm cited slower growth and higher capital intensity than it previously expected.

    Steel Dynamics — The steel producer’s stock gained 10% after the company announced its fourth-quarter earnings. The company posted adjusted earnings of $4.37 per diluted share, compared to the $3.76 analysts forecasted, according to FactSet. Steel Dynamics also beat expectations for revenue.
    ViaSat — The satellite company tumbled 7.8% following William Blair’s downgrade to market perform from outperform. William Blair said the company sees a more balanced risk-reward ratio for the stock following its outperformance so far in 2023.
    Mobileye — The autonomous driving tech company saw its shares jump 6% after posting earnings and revenue that beat analysts’ expectations. Mobileye posted adjusted earnings of 27 cents per share on $565 million in revenue for the fourth quarter. Analysts forecasted earnings of 17 cents per share on $530.2 million in revenue, according to FactSet.
    Peloton — The digital workout company added 3.4% after Bank of America reiterated the stock as a buy ahead of its earnings report next week. The firm said it expects modest upside on subscription and churn numbers and is hoping the company says it’s getting closer to having positive cash flows by 2024.
    Las Vegas Sands — Shares of the hotel and casino company jumped 6.1% despite a weaker-than-expected fourth quarter. Las Vegas Sands reported an adjusted loss of 19 cents per share on $1.12 billion of revenue. Analysts surveyed by Refinitiv were anticipating a loss of 9 cents per share on $1.18 billion of revenue. However, management struck a positive tone about the outlook in Asia, specifically Macao, for 2023 as China lifts travel restrictions.
    AT&T — The telecom stock dipped 2.1% on Thursday, giving back some of its post-earnings pop. The stock rose roughly 6.6% on Wednesday after reporting more wireless subscribers than expected for the fourth quarter.
    Sherwin-Williams — Shares of the paintmaker slid 8.9% after reporting fourth quarter sales came in lighter than expected. Sherwin-Williams earned an adjusted $1.89 per share last quarter, topping estimates by 2 cents, according to Refinitiv. But the $5.23 billion in revenue was below expectations of $5.26 billion. Guidance for sales and earnings was also lighter than expected as the company warned of limited visibility in the back half of 2023.
    IBM — Shares of IBM slipped 4.5% after the company reported quarterly earnings on Wednesday. The computing company also said it will cut 3,900 jobs, signaling potential weakness ahead. It also said it expects revenue growth on the low end of its mid-single-digit model in 2023.
    Southwest Airlines — Shares of Southwest Airlines fell 3.2% after the company reported a $220 million net loss in the fourth quarter, partly due to the holiday debacle when it cancelled 16,700 flights. That cost the company millions in revenue.
    Pfizer — Pfizer shares dipped 0.9% after UBS downgraded the pharma stock to neutral from a buy rating. The firm said estimates remain too high for the company’s Covid segment.
    Levi Strauss — Levi Strauss shares gained 7.5% after the denim maker beat Wall Street’s estimates and shared optimistic sales guidance for the new fiscal year.
    Tractor Supply — Shares gained 6% after the company reported fourth-quarter earnings and revenue before the bell that beat expectations. Tractor Supply’s EPS came in at $2.43 versus analysts’ estimate of $2.35 per share, according to Refinitiv.
    — CNBC’s Michelle Fox, Alex Harring, Jesse Pound, Carmen Reinicke, Samantha Subin and Darla Mercado contributed reporting.

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