Raphael Stevens

Democratic lawmakers are scrambling to negotiate alternative climate proposals for the president’s massive budget plan, following West Virginia Sen. Joe Manchin’s opposition to a core climate change strategy.
Manchin, a moderate Democrat who can sink the bill on his own in the 50-50 split Senate, has told the White House he’s opposed to a clean electricity plan, a key part of Biden’s climate agenda.
The plan is critical for Biden’s commitment to cut emissions in half by 2030 and put the U.S. on track to reach net-zero emissions by 2050.

Senator Joe Manchin, a Democrat from West Virginia, gets into a vehicle following a vote at the U.S. Capitol in Washington, D.C., U.S., on Monday, Oct. 4, 2021.
Stefani Reynolds | Bloomberg | Getty Images

Democratic lawmakers are scrambling to negotiate alternative climate change proposals for President Joe Biden’s massive budget plan, following West Virginia Sen. Joe Manchin’s strong opposition to the plan’s core climate change strategy.
Manchin, a moderate Democrat who can sink the bill in the 50-50 split Senate, said he will not vote for more than $1.5 trillion in spending and told the White House he’s opposed to a clean electricity plan, a key part of the president’s climate agenda.

The clean electricity program would require some of the country’s electricity to come from zero-carbon sources like wind and solar power and impose financial penalties on utilities that don’t meet clean energy standards. The $150 billion plan is critical for Biden’s commitment to cut emissions in half by 2030 and put the U.S. on track to reach net-zero emissions by 2050.
The president, in an attempt to salvage what had once been his $3.5 trillion budget plan, is meeting with members of the two warring factions of Democratic lawmakers on Tuesday. The outcome of this week’s negotiations could determine whether the budget bill gets through Congress and whether the $1 trillion bipartisan infrastructure bill already passed by the Senate receives a majority in the House.

U.S. President Joe Biden speaks during a conference call on climate change with the Major Economies Forum on Energy and Climate in the South Court Auditorium in the Eisenhower Executive Office Building on September 17, 2021 in Washington, DC.
Al Drago | Getty Images

White House staffers are now rewriting the bill without the clean electricity provision, according to a recent New York Times report, and considering other proposals such a tax on carbon and methane emissions. Manchin told reporters on Tuesday that a carbon tax “is not on the board at all right now.” Manchin’s office declined to comment.
Fighting climate change has been a main component of the president’s “Build Back Better” agenda. Other climate provisions in the budget plan include tax incentives for electric vehicle buyers and renewable energy producers; funding to install EV charging stations across the country; funding to update the country’s electric grid; and spending to drive down emissions from federal buildings and operations.
Democrats previously vowed they would not take the clean electricity program out of the legislation, arguing it’s by far the most feasible way for the U.S. to rapidly reduce emissions. Democrats aim to pass both plans before the end of the month and have not agreed to a final price tag for the budget, though it could amount to roughly $2 trillion.

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The opposition from Manchin, whose biggest single source of income last year was a coal consulting business he founded, could give Biden a weaker position at the upcoming United Nations climate change summit in Glasgow, Scotland.
The summit is an opportunity for the U.S., the world’s second-biggest carbon emitter, to prove it’s rejoining global efforts to fight climate change after Former President Donald Trump pulled the country from the Paris climate accord, mocked the science of climate change and dismantled more than 100 environmental regulations.
The clean electricity provision would be the most significant climate policy ever passed by the U.S. and a chance for Biden to show the rest of the world that the U.S. is a leading force on battling climate change. Before the president’s infrastructure proposal, the last major push to pass climate legislation through the Senate was in 2009, when congressional Democrats failed to pass a carbon-pricing system.
White House Press Secretary Jen Psaki on Tuesday said the president will push ahead on future bills focusing on provisions omitted from the budget bill. Therefore, Democrats might need to implement the clean electricity program through a future stand-alone bill if its cut from the president’s agenda at the end of the month.  
“Whatever we cannot tackle now, we will be able to tackle in future bills,” Psaki said during a brief briefing.
— CNBC’s Jacob Pramuk and Christina Wilkie contributed reporting

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ESPN said the 2021 WNBA Finals between the Chicago Sky and Phoenix Mercury attracted an average of 548,000 viewers throughout four games.

Candace Parker #3 of the Chicago Sky celebrates with her teammates after winning Game Four of the 2021 WNBA Finals against the Phoenix Mercury on October 17, 2021 at the Wintrust Arena in Chicago, Illinois.
Kena Krutsinger | National Basketball Association | Getty Images

The Women’s National Basketball Association concluded its 25th anniversary season with another positive sign for viewership for its championship series.
ESPN said the WNBA league attracted 417,000 total viewers for Game 4 of the WNBA Finals on Sunday between the Chicago Sky and Phoenix Mercury. The Sky won their first WNBA championship after beating the Mercury 80-74. Sky guard Kahleah Copper won the 2021 Finals MVP after averaging 17 points and 5.5 rebounds in the series. Sky forward Candace Parker finished the game with 16 points and team-high 13 rebounds.

The four-game series averaged 548,000 viewers, according to ESPN. The network said Game 3 was the most-watched, with an average of 524,000 viewers. In comparison, last October’s three-game WNBA Finals series featuring the Seattle Storm and Las Vegas Aces averaged 440,000 viewers. The final game for that series averaged 570,000 viewers. And the 2019 finals featuring the Connecticut Sun and Washington Mystics averaged 386,000 viewers and lasted five games.

The 2003 championship featuring the Los Angeles Sparks and Detroit Shock remains the league’s most-watch finals. The three-game series averaged 848,000 viewers. And Game 2 of that series averaged 1.2 million viewers on ABC.
For the 2021 season, the WNBA’s combined viewership averaged 306,000 viewers across Disney networks (ABC, ESPN) and CBS Television Network. The highest-rated game in the WNBA’s 25th anniversary season: an Aug. 15 contest between the Sky and Storm. That game averaged 755,000 viewers on ABC.
The WNBA noted its viewership is up 51% when compared to the 2020 regular season. The league added it’s also the most-viewed WNBA season since 2008. In that year, the WNBA averaged 413,000 viewers.

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Goldman Sachs is swapping out one big-box retailer for another.
The firm on Tuesday added Walmart to its conviction buy list, pointing to improved profitability and increased share of the U.S. grocery market.

At the same time, analysts removed Target from that list. The firm remains bullish on the stock but expects slower growth from the company next year more in line with its historical norms.
Goldman made the right call, according to Gina Sanchez, CEO of Chantico Global and chief market strategist at Lido Advisors.
“Lido Advisors has made a similar trade,” Sanchez told CNBC’s “Trading Nation” on Tuesday. “We owned Target, now we own Walmart, and one of the reasons is actually similar to the Goldman Sachs explanation.”
Like Goldman, Sanchez says that Walmart’s investments in the e-commerce space and its strength in grocery are two reasons to be bullish on Walmart. That one-two punch — a beefed-up e-commerce presence and the necessity of brick-and-mortar locations for grocery shopping — is “important to the future of Walmart,” she said.
Inside Edge Capital Management founder Todd Gordon is more cautious, at least until Walmart’s technical set-up improves. Walmart has underperformed Target and the broader market in 2021.

“Since August of last year — which is when the two diverged; they were tracking on top of each other —Target is up 64% [and] Walmart’s only up 9%, compared to the S&P benchmark at 30%. So, it’s kind of a tough call to make,” Gordon said during the same interview.

Arrows pointing outwards

The fundamental picture looks solid for Walmart, adds Gordon, with investments in e-commerce possibly ready to bear fruit. He says it could make sense for investors to put on a partial position on fundamental strength and add to it once the technicals strengthen.
“If we get through $155, you might see a breakout of trendline resistance, which is what happened in early 2019,” Gordon said.

Arrows pointing outwards

The stock would need to add 7% to reach that level. Walmart closed Tuesday just under $145.
Disclosure: Lido Advisors holds shares of Walmart.
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Ulta Beauty is speeding up curbside pickup and adding same-day delivery, as it adapts to a more digitally savvy customer.
Shares of the company fell Tuesday, after its outlook fell short of investors’ expectations.
The pandemic has disrupted the high-touch beauty industry and forced retailers, including Ulta Beauty, to come up with new ways to engage customers.

Florida, Port St Lucie, The Landing at Tradition, outdoor mall, Ulta, beauty cosmetics store.
Jeff Greenberg | Universal Images Group | Getty Images

Ulta Beauty said Tuesday that it will roll out same-day delivery in select markets and speed up curbside pickup orders, as the company chases consumers who have gotten used to buying lip gloss without leaving home.
At a virtual investor day, the specialty beauty retailer shared its financial outlook for the next three years. For fiscal 2022 through 2024, Ulta Beauty said it anticipates that diluted earnings per share will grow in the low double-digits and that capital expenditures will be between 4% and 5% of sales, roughly translating to between $1.1 billion and $1.4 billion.

Ulta said its net sales growth is expected to outpace the rest of the beauty and personal care industry, with a growth target of 5% to 7% versus 2% to 4% for the rest of the industry. Meanwhile, same-store sales will rise between 3% and 5% annually. Each year, it expects to open 50 stores.
Shares dove more than 10% on Tuesday on the disappointing forecast. Investors had high expectations for an explosion in demand as shoppers refreshed makeup bags and made plans to go out again. As of Monday’s close, Ulta shares have risen 42% this year.
Ulta Beauty — and the beauty industry at large — has scrambled to adapt during the pandemic. The global health crisis disrupted the high-touch retail category, which has historically used testers, perfume spritzes and advice from beauty consultants to drive sales. Consumers pulled back on beauty purchases as they wore masks, worked from home and largely skipped social events.
Ulta, for instance, added curbside pickup to its stores in April 2020, shortly after the pandemic began.
Sales online and at stores open for at least 14 months fell 17.9% in the fiscal year ended Jan. 30. Transactions also dropped by 24.5% last fiscal year as shoppers made fewer trips to Ulta’s stores and its website.

Pandemic habits are sticking

In the most recent quarter, Ulta’s sales rebounded and surpassed pre-pandemic levels. The retailer’s second-quarter same-store sales rose 56.3% compared with the year-ago period. Transactions jumped by 52.5% from the year-ago period. On a two-year basis, comparable sales grew 13.1%.
With its outlook, Ulta Beauty anticipates skincare sales will remain elevated, makeup sales will return to growth, and hair care product sales will accelerate. It also pointed to growth opportunities, such as launching a new advertising business and attracting more Black and Hispanic customers with an expanded assortment of textured-hair products and more.
Ulta executives said some pandemic-related habits will be sticky. Consumers have embraced self-care items, such as face masks, deep conditioners and home scents. They have a heightened interest in wellness-related beauty products. And they are more digitally savvy.
Chief Operating Officer Kecia Steelman said the line between in-person and online shopping has blurred. For instance, she said, a customer may toss items into her virtual cart based on a TikTok video. Days later, she may visit a store and take cues from both the eye-catching display and reviews that she reads on her smartphone while browsing aisles.

Ulta’s most valuable customers

Chief Digital Officer Prama Bhatt said those customers are the retailer’s most valuable because they shop more frequently and spend more. A customer who shops in both channels typically spends three times more than a customer who shops only online and makes four times as many purchases per year.
That finding has inspired Ulta’s efforts. Ahead of the holidays, it will roll out same-day delivery in some markets. Ulta declined to disclose the fee and markets where the service will be available, saying more details are coming soon.
It is also promising customers that it will have curbside pickup orders ready in two hours or less after they hit the “buy” button.
Its competitor, LVMH-owned Sephora, launched a same-day delivery option last week in most major cities and suburbs. It is charging a flat fee of $6.95 for the delivery. Items must be ordered before 4 p.m. local time to be delivered same day.
Ulta’s Bhatt said shoppers increasingly expect fast service and respond well to it.
“We think that’s going to be an important differentiator as we go forward,” she said.

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