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    Stephen Curry signs $62.6 million, one-year contract extension with Warriors

    NBA superstar Stephen Curry has agreed to sign a one-year, $62.6 million extension with the Golden State Warriors, his agent confirmed to CNBC.
    The extension keeps Curry in a Golden State uniform through the 2026-27 season.
    Curry will be the first NBA player to make $60 million in a season, and was also the first to make $50 million and $40 million.

    Steph Curry
    Jonathan Bachman | Getty Images

    NBA superstar Stephen Curry has agreed to sign a one-year, $62.6 million extension with the Golden State Warriors, his agent confirmed to CNBC.
    The extension keeps Curry in a Warriors uniform through the 2026-2027 season, and will make him the first NBA player to make $60 million in a season, according to Spotrac. As of now, several NBA players who have signed long-term extensions are set to eclipse Curry’s $62.6 million salary the following year.

    Curry is a four-time NBA champion and most recently won a gold medal with the Team USA basketball team at the 2024 Olympics. In the championship game against France, Curry led the team with 24 points, all of which were three-pointers.

    Curry is no stranger to setting records. He was the first NBA player to hit both the $40 million and $50 million annual base salary marks and has been the highest paid player in the league since the 2017-2018 season, according to Spotrac.
    Curry, among other stars, is one of the reasons why the NBA was able to negotiate an 11-year, $77 billion media rights contract in its most recent deal with Disney, NBCUniversal and Amazon, which takes effect after the upcoming season. The booming value of media rights is driving player salaries up with it.
    Younger players like Boston Celtics forward Jayson Tatum have signed contracts worth more than $300 million over five years, as the league keeps growing more popular and sports continue to be one of the only types of television that people will tune in for live.
    Curry, 36, has played his entire NBA career with the Warriors. He has won two league MVP awards and is the all-time leader in three-pointers made.

    Programming note: Curry will appear on CNBC’s “Squawk on the Street” at 10:30 a.m. ET on Tuesday.
    Disclosure: Comcast NBCUniversal is the parent company of CNBC. More

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    GM folding its all-electric BrightDrop vans into Chevrolet brand

    GM will fold its electric BrightDrop commercial vans into the Chevrolet brand in an attempt to increase sales, accessibility and recognition of the vehicles.
    The move is expected to expand the selling and service points from a handful of dealers to Chevrolet’s large network of North American dealers.
    It’s the latest change for BrightDrop, which GM launched in 2021 as a fully owned subsidiary before folding it into the company last year.

    Brightdrop EV600 van
    Source: Brightdrop

    DETROIT – General Motors is folding its all-electric BrightDrop commercial vans into the Chevrolet brand in an attempt to increase sales, accessibility and recognition of the vehicles.
    The change is expected to expand the selling and service points from a handful of dealers to Chevrolet’s large network of North American dealers, including more than 500 commercial-focused stores in the U.S., according to Sandor Piszar, vice president of the GM Envolve fleet business in North America.

    “It’s got that strength of the Chevrolet brand behind it,” he told CNBC. “It’s absolutely going to drive volume. It helps our customers that choose to go into EVs to easily do so working with the Chevrolet dealer they know and trust now for their other fleet needs.”
    The number of new dealers will be based on the amount that decide to opt in to selling and servicing the vans. To sell commercial EVs, dealers must have specific vehicle lifts, service bays and employee training, among other things.
    GM declined to disclose the average cost for a dealer to become certified to sell the BrightDrop products, citing expenses will vary based on the store.

    BrightDrop currently sells two all-electric commercial vans, called the Zevo 400 and Zevo 600, which are used for things such as package delivery. Starting later this year with the 2025 model year, those vans will be rebranded as Chevrolet BrightDrop 400 and 600 vans.
    “Chevy’s our top-selling fleet brand for General Motors.” Piszar said. “This makes absolute perfect sense for GM Envolve and Chevrolet.”

    The Thursday announcement is the latest change for BrightDrop, which GM launched in 2021 as a fully owned subsidiary before folding it into the company’s fleet business last year.

    Read more CNBC auto news

    GM had high expectations of making BrightDrop into a new, lucrative growth business for the automaker, but sales and revenue are not believed to have met the company’s initial expectations.
    BrightDrop was expected to generate $1 billion in revenue in 2023. GM declined to disclose BrightDrop’s revenue, but it’s highly unlikely the target was achieved.
    The automaker only sold about 500 BrightDrop vans in 2023. GM reports BrightDrop’s sales through the first six months of 2024 were 746 units.
    The vans are produced at GM’s CAMI Assembly plant in Ingersoll, Ontario.

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    American Eagle saw profits grow nearly 60% as costs come down

    American Eagle delivered mixed quarterly results that beat Wall Street’s profits expectations but fell short of its sales targets.
    The longtime mall brand, which also runs the Aerie intimates line, saw profits grow by nearly 60% as costs begin to tick down for the company.
    American Eagle also delivered a mixed outlook that implies an uncertain second half of the year.

    A shopper walks past the American clothing and accessories retailer American Eagle store in Hong Kong.
    Budrul Chukrut | Lightrocket | Getty Images

    American Eagle missed Wall Street’s sales targets for a second quarter in a row on Thursday, but profit grew by nearly 60% thanks in part to lower product costs. 
    The company’s shares fell more than 7% in premarket trading Thursday.

    Here’s how the apparel company did in its fiscal second quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

    Earnings per share: 39 cents vs. 38 cents expected 
    Revenue: $1.29 billion vs. $1.31 billion expected 

    The company’s reported net income for the three-month period that ended Aug. 3 was $77.3 million, or 39 cents per share, compared with $48.6 million, or 25 cents per share, a year earlier. 
    Sales rose to $1.29 billion, up about 8% from $1.2 billion a year earlier. That sales gain would have been slimmer had it not been for a calendar shift, which positively impacted second-quarter sales by $55 million.
    During the quarter, American Eagle’s intimates line Aerie saw revenue grow 9% while its namesake brand grew by 8%. 
    American Eagle’s gross margin came in at 38.6% — 0.9 percentage point higher than the prior year and in line with what analysts had expected. The gross margin expansion was led by “favorable product costs,” indicating American Eagle spent less to make its assortment during the quarter. It’s unclear if it lowered prices as a result.

    The longtime mall brand issued a better-than-expected outlook for the current quarter but its forecast was lower than anticipated for the full year, indicating the company is still bracing for a turbulent second half. 
    For the current quarter, American Eagle expects comparable sales to grow between 3% and 4%, which is better than the 2.8% growth that analysts had expected the company to forecast, according to StreetAccount. 
    The retailer is expecting total revenue to be flat to up slightly for the third quarter — in line with expectations, according to LSEG.
    For the year, the company expects comparable sales to increase approximately 4%, with total revenue up 2% to 3%, shy of what analysts had expected. Wall Street was expecting its full-year comparable sales forecast to be up 4.2% and overall sales to be up 3.5%, according to StreetAccount and LSEG.
    In May, Finance Chief Mike Mathias told CNBC that American Eagle is maintaining a “cautious” view for the back half of the year as it awaits interest rate decisions from the Federal Reserve and prepares for “noise” around the upcoming presidential election. 
    Like other retailers contending with slowing demand for discretionary items, American Eagle has looked to cut costs and boost efficiencies so it can protect profits, even if sales are sluggish. Earlier this year, it unveiled a new strategy to grow profits and is working to boost sales by 3% to 5% each year over the next three years and get its operating margin to about 10%.
    During the quarter, American Eagle made some strides in achieving that goal. It posted an operating income of $101 million, an increase of 55%, while its operating margin grew 2.4 percentage points to 7.8%. Operating income would have been lower had it not been for the calendar shift, which positively impacted the metric by $20 million. 

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    Dollar General shares crater 25% as retailer cuts outlook, blaming ‘financially constrained’ customers

    A sign hangs above a Dollar General store in Chicago on Aug. 31, 2023.
    Scott Olson | Getty Images

    Dollar General shares tumbled Thursday after the discount retailer slashed its sales and profit guidance for the full year, suggesting its lower-income customers are struggling in this economy.
    Shares of the retailer, which caters to more rural areas, tumbled 25% in premarket trading after the earnings report.

    The company now expects fiscal 2024 same-store sales to be up 1.0% to 1.6%, lower than prior outlook for a 2% to 2.7% increase. Earnings per share for the year are expected to be in the range of just $5.50 to $6.20, versus the prior forecast of $6.80 to $7.55 per share.
    “While we believe the softer sales trends are partially attributable to a core customer who feels financially constrained, we know the importance of controlling what we can control,” said CEO Todd Vasos in a statement.
    Dollar General also reported disappointing numbers for the latest quarter. EPS of $1.70 per share came in below an LSEG estimate of $1.79 per share, while revenue of $10.21 billion was also lower than the analyst expectation of $10.37 billion.
    Competitor Dollar Tree was falling in sympathy, off by more than 9% in premarket trading.

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    ‘Vigorous give and take’: U.S. security advisor discusses economic curbs in rare trip to China

    U.S. national security advisor Jake Sullivan said he raised concerns about the country’s focus on economic security in meetings with Chinese officials.
    Earlier Thursday, a statement from Chinese President Xi Jinping said he told Sullivan that Beijing hopes Washington will find “a right way” to get along.
    Tensions between the world’s two largest economies have escalated in recent years spilling over from trade into finance and technology.

    US National Security Advisor Jake Sullivan shakes hands with China’s President Xi Jinping (R) during their meeting at the Great Hall of the People in Beijing on August 29, 2024. 
    Trevor Hunnicutt | Afp | Getty Images

    BEIJING — U.S. national security advisor Jake Sullivan said he raised concerns about the country’s focus on economic security in meetings with Chinese President Xi Jinping and other officials this week.
    Just as the U.S. has cited national security concerns for its own restrictions on Chinese tech imports, China has increasingly emphasized the need to protect its economic security.

    Foreign businesses in China have complained of vague data rules and preferential treatment for local players, as well as subsidies that allow Chinese businesses to sell at far lower prices.
    Sullivan told reporters Thursday that he had discussed the impact such issues have on Western businesses and supply chains.
    “We had a vigorous give and take on the issue, obviously didn’t come to agreement,” Sullivan told reporters during a press conference at the end of the trip.
    Sullivan, advisor to the outgoing Biden administration, said his trip to China was part of an effort to manage the bilateral relationship ahead of the inauguration of a new U.S. president in January.

    U.S. National Security Advisor Jake Sullivan attends a press conference at the U.S. embassy in Beijing, China August 29, 2024. 
    Tingshu Wang | Reuters

    It comes just over a month after U.S. President Joe Biden dropped out of the presidential race and endorsed his Vice President Kamala Harris as the Democrat nominee.

    Sullivan said he told Chinese officials how Harris has been a “central member” of Biden’s foreign policy team, and is known to China’s top leaders, including having had a meeting with Xi.
    The security advisor said Harris “shares” Biden’s view for responsibly managing competition so that it doesn’t veer into confrontation, and that high-level communication is the way to manage that.

    Xi-Biden meeting?

    Sullivan arrived in Beijing Tuesday for two days of meetings in his first trip to China as national security advisor. He is scheduled to depart China later Thursday.
    Sullivan met with Chinese President Xi Jinping, China’s top diplomat Wang Yi, and Zhang Youxia, vice chairman of the Chinese Communist Party’s Central Military Commission on his visit.
    Biden and Xi are planning to speak by phone in “coming weeks,” the White House said Wednesday, and Sullivan indicated to reporters that the leaders would likely meet in person later this year on the sidelines of a multilateral conference.
    Earlier Thursday, a statement from Xi said he told Sullivan that Beijing hopes Washington will find “a right way” to get along.

    Zhang Youxia, Vice Chairman of the CPC Central Military Commission holds a meeting with White House national security adviser Jake Sullivan, at the Bayi building in Beijing, Thursday, Aug. 29, 2024. 
    Ng Han Guan | Via Reuters

    “While great changes have taken place in the two countries and in China-U.S. relations, China’s commitment to the goal of a stable, healthy and sustainable China-U.S. relationship remains unchanged,” Xi said, according to an English-language release shared by China’s Ministry of Foreign Affairs.
    Tensions between the world’s two largest economies have escalated in recent years, spilling over from trade into finance and technology.
    The Chinese leader said Thursday that he hopes the U.S. would view China’s economic growth “in a positive” light and “work with China to find a right way for two major countries to get along with each others,” according to Beijing. China surpassed Japan in 2010 to become the world’s second-largest economy, behind the United States.

    The last official trip to China by a U.S. president’s national security advisor was in 2016, when Susan Rice traveled to Beijing under the Obama administration.
    While the outcome of November’s U.S. presidential election remains unclear, being tough on Beijing is a rare issue that both U.S. political parties agree on.
    Harris’ current national security advisor, Phil Gordon, said in May at a Council on Foreign Relations event that the “China challenge” is much greater than Taiwan, and requires ensuring that Beijing “doesn’t have the advanced technology, intelligence and military capabilities that can challenge us.” More

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    Best Buy shares jump on profit beat and guidance hike

    Best Buy raised its fiscal-year profit guidance Thursday after exceeding earnings and revenue expectations for the most recent quarter.
    The retailer now expects to see full-year adjusted earnings per share in the range of $6.10 to $6.35, up from a prior range of $5.75 to $6.20.
    Best Buy posted comparable sales growth of 6% in the domestic tablet and computing categories.

    People walk into a Best Buy store in a Brooklyn mall on August 29, 2023 in New York City.
    Spencer Platt | Getty Images

    Best Buy raised its fiscal-year profit guidance Thursday after exceeding earnings and revenue expectations for the most recent quarter.
    The retailer now expects to see full-year adjusted earnings per share in the range of $6.10 to $6.35, up from a prior range of $5.75 to $6.20. The company, however, lowered the top end of its guidance ranges for both full-year revenue and comparable sales.

    “As we look to the back half of the year, we expect our industry to continue to show increasing stabilization,” Best Buy CFO Matt Bilunas said in the company’s press release.
    Shares of Best Buy jumped more than 14% in premarket trading Thursday.
    Here’s how the consumer electronics retailer did for the period ended August 3 compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

    Earnings per share: $1.34 vs. $1.16 expected
    Revenue: $9.29 billion vs. $9.24 billion expected

    The company reported net income for the quarter of $291 million, or $1.34 per share, compared with $274 million, or $1.25 per share, a year earlier. 
    Net sales in the quarter dropped to $9.29 billion from $9.58 billion during the same period a year earlier.

    Comparable sales declined 2.3% during the quarter, compared with a 6.2% decline a year earlier.
    Best Buy has been in the midst of an attempted turnaround in response to a two-year sales slump. Discretionary merchandise retailers across the board have struggled with softer consumer demand in the wake of unusually high sales throughout the Covid pandemic and as consumers pullback due to high inflation.
    As the much-awaited replacement cycle of pandemic-era tech purchases starts trickling in, the retailer is hoping to cash in through marketing and operational initiatives. Best Buy said in July that it would add trained sales teams to three key parts of its stores — computing, appliance, and home theater — and kick off a marketing campaign that includes YouTube videos to draw consumer interest.
    The company was also betting on a wave of new tech gadget debuts, such as a collection of new iPads launched by Apple in May and artificial intelligence-enabled laptops touted by Microsoft, to drive sales.
    The company on Thursday posted comparable sales growth of 6% in the domestic tablet and computing categories. However, that was “more than offset” by declines in appliances, home theater and gaming, executives said.
    “We capitalized on demand driven by our customers’ desire to replace or upgrade their products, combined with new innovation,” CEO Corie Barry said during the company’s earnings call. “We see a consumer who is seeking value in sales events and one who is also willing to spend on high-price-point products when they need to or when there is new, compelling technology.”
    Barry said AI could continue to boost sales across categories over the next few years.
    “We believe we are just at the beginning of the impact of AI on tech innovation and customer demand,” she said. More

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    Can Japan’s zombie bond market be brought back to life?

    Visitors to Tokyo in the 1990s arrived in a city that looked like the future. A megalopolis of high-rise buildings, neon lights and new technology left a mark on those who witnessed it. But the city has not changed all that much since. Today some travellers joke that Tokyo still looks like a vision of the future—just one planned in 1990. More

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    The plasma trade is becoming ever-more hypocritical

    An unusual sort of business will soon open in Shelby, North Carolina. It will take over premises previously run by a flooring company, tucked in beside shops selling clothes, paint and fast food. But it will not sell anything itself. Instead, willing donors, paid around $40 a pop, will sit connected to an apheresis machine. Over the course of an hour, the machine will extract their blood, siphon out plasma and recirculate the remaining fluid. The plasma will then be made into medicines, such as clotting factors for haemophiliacs and intravenous immunoglobulins for those suffering from autoimmune diseases. More