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    Will America’s stockmarket convulsions spread?

    It seems like five minutes ago that America’s stockmarket was the only game in town. Prices were breaking records every other week; rivals around the world had been left behind. Now investors’ faith in the country’s exceptionalism has been shaken by a deteriorating outlook for economic growth and Donald Trump’s erratic protectionism (see chart 1). Indeed, on March 11th the president said that he would double new tariffs on Canadian aluminium and steel before reversing course. Investors are therefore less willing to pay far higher multiples of underlying earnings for shares in American firms than for those listed elsewhere, a decision that had been justified by fatter profit margins and stronger growth prospects. More

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    Most of the S&P 500 is already in correction territory as benchmark teeters near milestone

    A trader works on the floor of the New York Stock Exchange at the opening bell on March 10, 2025.
    Charly Triballeau | Afp | Getty Images

    The majority of the stocks in the S&P 500 are already in correction territory as the sell-off on Wall Street continues to drag the benchmark closer to that key threshold.
    As of Monday’s close, 366 S&P 500 components, or 73%, were trading 10% or more below their respective 52-week highs, which means they have already suffered a correction. A total of 203 components closed more than 20% below 52-week highs as of Monday, meaning they are in bear market territory.

    The S&P 500 is in the red again Tuesday, sitting about 9% below its 52-week high reached on Feb. 19. The market decline accelerated over the past week as President Donald Trump’s aggressive tariffs stoke fears of slowing economic growth and even a recession.

    Stock chart icon

    Five out of 11 S&P 500 sectors are in correction territory: consumer discretionary, tech, communication services, materials and energy.
    The biggest laggards in the S&P 500 include drugmaker Moderna and the highly volatile artificial intelligence play Super Micro Computer, which have fallen 79% and 69% from their record highs, respectively.First Solar, Intel, Enphase Energy, Dollar Tree, Estée Lauder and Tesla have all declined at least 50% from their recent peaks.

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    Airline CEOs warn domestic travel demand is slowing

    Delta, American and Southwest have cut their first-quarter forecasts.
    Airlines have said economic weakness and uncertainty have driven down domestic travel demand.
    Government travel has also slowed.

    A Delta Airlines and American Airlines plane are seen at Ronald Reagan Washington National Airport in Arlington, Virginia, on July 1, 2023.
    Stefani Reynolds | AFP | Getty Images

    Airlines are cutting their first-quarter profit and sales estimates, warning that a weaker economic backdrop is weighing on travel demand.
    Ahead of a JPMorgan industry conference, American Airlines on Tuesday said it expects to lose between 60 cents a share to 80 cents a share in the first three months of the year, a wider loss than the 20 cents to 40 cents a share it previously forecast. It said revenue would likely be flat on the year compared with a January estimate of a rise of as much as 5%.

    American said in a securities filing that “the revenue environment has been weaker than initially expected due to the impact of Flight 5342 and softness in the domestic leisure segment, primarily in March,” referring to the deadly collision of one of its regional jets and an Army helicopter in Washington D.C. in January.

    Read more CNBC airline news

    The forecast followed Delta Air Lines slashing its first-quarter estimates after the market closed Monday. Delta said its outlook was “impacted by the recent reduction in consumer and corporate confidence caused by increased macro uncertainty, driving softness in Domestic demand.”
    Airline shares extended their losses on Tuesday morning in premarket trading, with Delta down more than 8% and American down nearly 4%.
    Southwest Airlines also cut its revenue guidance, to up no more than 4%, down from a forecast of as much as 7% for the first quarter over last year.
    In addition to leisure travel, carriers have said also noted a sharp decline in government travel since the start of the latest Trump administration.
    This is a developing story. Please check back for updates. More

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    Southwest Airlines as we know it is over. Here’s what’s changing, from bag fees to basic economy

    Southwest Airlines plans to end its decades-old policy of allowing free checked bags.
    The carrier also will launch a basic economy ticket that doesn’t allow for free changes.
    The changes come after intense pressure from hedge fund Elliott Investment Management.

    A Southwest Airlines Boeing 737 MAX is pushed back from the gate at San Diego International Airport in San Diego, Aug. 24, 2024.
    Kevin Carter | Getty Images

    Southwest Airlines announced Tuesday what was once unthinkable: It will start charging customers to check their luggage.
    It’s a $300 million gamble. Last year, Southwest said its “rigorous research” found it would lose that much in market share if it started charging bag fees. The policy has set Southwest apart from its competitors for decades.

    Getting rid of its famous “two bags fly free” strategy is part of a massive push at the carrier to ditch its longstanding customer perks and policies. Southwest also announced last year that it’s moving from open seating to a single-class cabin in order to raise revenue. Another change announced Tuesday: basic economy tickets that don’t allow free changes.
    Here’s what travelers need to know about the changes:

    Who will pay for bags?

    Travelers who buy any ticket except Southwest’s top-level Business Select fare will have to pay fees to check bags. Customers who purchase a Business Select ticket will be able to check two bags for free.
    Top-tier A-List Preferred frequent flyer program members will also get two checked bags for free. A-List level members will be able to check one bag for free, as will those with a Southwest credit card.

    How much will it cost to check a bag?

    Southwest didn’t disclose how much it will cost to check a bag but fees start at $35 apiece on competitors Delta, United and American.

    When do the new policies take effect?

    The new checked baggage fees go into effect for tickets purchased on or after May 28.

    Read more CNBC airline news

    Why is this happening?

    Southwest has been under increasing pressure to raise revenue and improve returns after activist hedge fund Elliott Investment Management took a stake in the airline last year and pushed for changes to the carrier’s business model.
    Southwest executives have long told Wall Street investors and customers that its “two bags fly free” policy is sacrosanct, something that sets it apart from competitors.
    At an investor day in September, the carrier said it would make up to about $1.5 billion if it charged for bags but lose $1.8 billion in market share from the policy change.

    What else is happening?

    Lots! Southwest is going to launch a basic economy fare that is not refundable and doesn’t allow for changes. It won’t allow for same-day standby tickets.
    Flight credits for those “basic” tickets, if unused, will expire in six months while credits for other flights will expire in 12 months. Previously, Southwest credits didn’t expire.
    The carrier last year said it plans to start selling tickets with assigned seats, ending its decades of its open-seating policy. It will also soon offer seats with extra legroom, a bid to compete with more full-service airlines. More

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    Southwest Airlines will charge to check bags for the first time, launch basic economy tickets

    Southwest Airlines said Tuesday it will charge for checked bags for the first time in its more than half-century of flying.
    The carrier is under increasing pressure from Elliott Investment Management, which has called for drastic changes to the company’s business model.
    U.S. airlines took in more than $5 billion in baggage fees last year.

    Ground operations employees load baggage onto a Southwest Airlines Boeing 737 aircraft on the tarmac at John Wayne Airport in Santa Ana, California.
    Patrick T. Fallon | Bloomberg | Getty Images

    It’s happening: Southwest Airlines will start charging passengers to check bags for the first time.
    It’s a stunning reversal that shows the low-cost pioneer is willing to part with a customer perk executives have said set it apart from rivals in more than half a century of flying in hopes of increasing revenue.

    Southwest’s changes come after months of pressure from activist Elliott Investment Management. The firm took a stake in the airline last year and won five board seats as it pushed for quick changes at the company, which held on for decades — until now — to perks like free checked bags, changeable tickets and open seating.
    For tickets purchased on or after May 28, Southwest customers in all but the top-tier fare class will have to pay to check bags, though there will be exceptions. Elite frequent flyers who hold “A-List Preferred” status will still get two bags and A-List level members will get one free checked bag. Southwest credit card holders will also get one free checked bag.
    “Two bags fly free” is a registered trademark on Southwest’s website. But its decision to about-face on what executives long cast as a sacrosanct passenger perk brings the largest U.S. domestic carrier in line with its rivals, which together generated more than $5 billion from bag fees last year, according to federal data.
    Southwest didn’t say how much it plans to charge to check bags but it a single bag costs $35 to check on Delta, American and United.

    Read more CNBC airline news

    Southwest executives have long said they didn’t plan to charge for bags, telling Wall Street analysts that it was a major reason why customers chose the airline.

    At an investor day in September, Southwest said that it would gain between $1 billion and $1.5 billion from charging for bags but lose $1.8 billion of market share. Southwest said its “rigorous research” found that “our ‘bags fly free’ policy generates market share gains in excess of potential lost revenue from bag fees,” the company said in a presentation tied to its investor day.
    Some airline executives see an opportunity.
    “I think clearly, there are some customers who [chose Southwest] because of that, and now those customers are up for grabs,” Delta Air Lines president Glen Hauenstein said at an investor conference on Tuesday, after Southwest’ announcement.  “We’ll see how that plays out over the next period of time as they continue to implement multiple changes to their products.”
    Southwest CEO Bob Jordan had cited the company’s bag policy in an earnings call last July.
    “After fare and schedule, bags fly free is cited as the No. 1 issue in terms of why customers choose Southwest,” Jordan said.
    But Southwest has changed its tune.
    “What’s changed is that we’ve come to realize that we need more revenue to cover our costs,” COO Andrew Watterson said in an interview with CNBC about the baggage fee changes. “We think that these changes that we’re announcing today will lead to less of that share shift than would have been the case otherwise.”
    In September, Southwest’s then chief transformation officer, Ryan Green, told analysts that an analysis showed Southwest would lose more money from passengers defecting to rivals if it started charging for bags than it would make from the fees.
    “The fact that free bags is a key driver of choice creates the risk that customers may choose the competition if we change the policy,” he said.
    Southwest said last month that it had parted ways with Green.

    Pristine Floyde searches for a friend’s suitcase in a baggage holding area for Southwest Airlines at Denver International Airport on December 28, 2022 in Denver, Colorado.
    Michael Ciaglo | Getty Images

    Other changes

    The airline also said Tuesday that it will launch a new, basic economy fare, something rivals have offered for years.
    Southwest, in addition, will change the way customers earn Rapid Rewards: Customers will earn more of the frequent flyer miles depending on how much they pay. Redemption rates will vary depending on flight demand, a dynamic pricing model competitors use.
    And flight credits for tickets purchased on or after May 28 will expire in one year, or earlier, depending on the type of fare purchased.
    It’s the latest in a string of massive strategy changes at Southwest as its performance has fallen behind rivals.
    Last July, Southwest shocked passengers when it announced it would ditch its open seating model for assigned seats and add “premium” extra legroom options, ending decades of an single-class cabin.
    The airline is also looking to slash its costs. Higher expenses coming out of the pandemic have taken a bite out of airline margins.
    Last month, Southwest announced its first mass layoff, cutting about 1,750 jobs roughly 15% of its corporate staff, many of them at its headquarters, a decision CEO Jordan called “unprecedented” in the carrier’s more than 53 years of flying.
    “We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization,” he said last month.
    Earlier this year, Southwest announced the retirement of its longtime finance chief, Tammy Romo, who was replaced by Breeze executive Tom Doxey, and its chief administrative officer, Linda Rutherford. Both executives worked at Southwest for more than 30 years.
    Southwest has also cut unprofitable routes, summer internships and employee team-building events its held for decades.

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    Dick’s Sporting Goods is latest retailer to forecast rocky 2025 as recession fears swirl

    Dick’s Sporting Goods saw its strongest holiday on record, but it’s expecting profits to be lower than Wall Street anticipated in 2025.
    The sporting equipment and apparel retailer said its guidance takes into account sliding consumer confidence and the impact tariffs could have on spending.
    Executive chairman Ed Stack told CNBC “it’s just a bit of an uncertain world out there right now.”

    Dick’s Sporting Goods branded water bottles are displayed in a store on September 04, 2024 in Daly City, California. 
    Justin Sullivan | Getty Images

    Dick’s Sporting Goods on Tuesday said it’s expecting 2025 profits to be far lower than Wall Street anticipated, making it the latest retailer to forecast a rocky year ahead as consumers contend with tariffs, inflation and fears around a potential recession. 
    In an interview with CNBC, Executive Chairman Ed Stack said the company’s exposure to China, Mexico and Canada for sourcing is very small, but it recognizes that falling consumer confidence could impact spending.

    “I do think it’s just a bit of an uncertain world out there right now,” said Stack. “What’s going to happen from a tariff standpoint? You know, if tariffs are put in place and prices rise the way that they might, what’s going to happen with the consumer?”
    Shares of the company fell about 5% in premarket trading.
    Despite the weak guidance, the sporting goods retailer posted its best holiday quarter on record. Its comparable sales rose 6.4%, far ahead of the 2.9% growth that analysts expected, according to StreetAccount. 
    Here’s how Dick’s did in its fiscal fourth quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

    Earnings per share: $3.62 vs. $3.53 expected
    Revenue: $3.89 billion vs. $3.78 billion expected

    The company’s reported net income for the three-month period that ended Feb. 1 was $300 million, or $3.62 per share, compared with $296 million, or $3.57 per share, a year earlier.  

    Sales rose to $3.89 billion, up about 0.5% from $3.88 billion a year earlier. Like other retailers, Dick’s benefited from an extra week in the year-ago period, which has skewed comparisons. But unlike many of its peers, Dick’s still managed to grow both sales and profits during the quarter, even with one less selling week. 
    In the year ahead, Dick’s is expecting earnings per share to be between $13.80 and $14.40, well short of Wall Street estimates of $14.86, according to LSEG. It anticipates net sales will be between $13.6 billion and $13.9 billion, which at the high end is in line with estimates of $13.9 billion, according to LSEG. Dick’s expecting comparable sales to grow between 1% and 3%, compared with estimates of up 2.5%, according to StreetAccount. 
    The gloomy earnings outlook comes after a wide array of other retailers gave weak forecasts for the current quarter or the year ahead amid concerns about sliding consumer confidence and the impact tariffs and inflation could have on spending. Kohl’s also offered a weak outlook for the year ahead on Tuesday, leading its shares to plummet 15%.
    Some retailers blamed an unseasonably cool February for a weak start to the current quarter, but most recognized they’re also operating in a tough macroeconomic backdrop, and it’s tougher than ever to forecast how consumers are holding up. In February, consumer confidence slid to its lowest levels since 2021, the jobs report came in weaker than expected and unemployment ticked up. Over the last few years, a strong job market has led many economists to brush away concerns about rising credit card delinquencies and debt, but those cracks could grow deeper if unemployment continues to rise. 
    On Monday, some of those concerns triggered a stock market sell-off, extending losses after the S&P 500 posted three consecutive negative weeks. The Nasdaq Composite saw its worst day since September 2022, while the Dow lost nearly 900 points and closed below its 200-day moving average for the first time since Nov. 1, 2023.
    In a news release, CEO Lauren Hobart said the company’s guidance “reflects strong confidence in our strategies and operational strength” but also takes into account “the dynamic macroeconomic environment.”
    Further, Dick’s plans to invest more heavily in its “House of Sport” concept and e-commerce in the year ahead, which it also expects will weigh on profits. The massive, 100,000-square-foot stores are a growth area for the company and include features like rock climbing walls and running tracks. 
    In the year ahead, Dick’s plans to spend $1 billion on a net basis building 16 additional House of Sport locations and 18 Field House locations, which take some of the experimental elements of the House of Sport but fit it into the size of a traditional Dick’s store. 
    The strategy comes at a strong point for sports in the country, which is expected to be a tail wind for the business. The 2026 World Cup will be held in North America, women’s sports are more popular than ever, and consumers are increasingly focused on health and wellness. 
    “We’re going to have a moment here in the next three or four years, from a sports standpoint, that I think is going to put sport on steroids,” said Stack. “We’re going into a sports moment right now, and we are investing very heavily into that sports moment over the next several years because this is going to last through [2030] and maybe beyond.”
    — Additional reporting by CNBC’s Courtney Reagan.

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    Kohl’s shares plunge 15% as retailer gives rough outlook for the year ahead

    Kohl’s earnings and revenue topped estimates for the fourth quarter, but it issued disappointing guidance for 2025.
    Revenue came in at $5.18 billion for the fourth quarter and $15.39 billion for the full year.
    The retailer said it expects revenue to fall 5% to 7% in fiscal 2025.

    A worker pushes a cart outside of Kohl’s store on November 26, 2024 in San Rafael, California. 
    Justin Sullivan | Getty Images

    Kohl’s posted an earnings and revenue beat for the fourth quarter on Tuesday, but its stock plunged as it issued much worse-than-expected guidance for the year ahead.
    Shares of the company fell more than 15% in premarket trading on Tuesday.

    For 2025, Kohl’s expects revenue to fall 5% to 7%, compared with Wall Street estimates of a 1.6% decrease, according to LSEG. The company projected comparable sales will fall 4% to 6%, while analysts anticipated a 0.9% decrease, according to StreetAccount. Kohl’s expects earnings per share to come in between 10 cents and 60 cents, a miss compared to a midpoint Wall Street estimate of $1.23, according to LSEG.
    Here’s how the retailer did compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

    Earnings per share: 95 cents adjusted vs. 73 cents expected
    Revenue: $5.18 billion vs. $5.15 billion expected

    Kohl’s has navigated significant turmoil in the last few months. The retailer in November named Ashley Buchanan its new CEO as of Jan. 15, replacing Tom Kingsbury after he spent two years leading Kohl’s. In January, the company announced that it had cut nearly 10% of its corporate workforce and would close 27 underperforming stores by April.
    Shares of the company have fallen over 50% in the past year.
    Kohl’s also became the latest retailer to say it expected a turbulent 2025, following Dick’s Sporting Goods earlier Tuesday. Falling consumer confidence, President Donald Trump’s tariff policy and weaker-than-expected job growth have all raised fears about a potential recession.

    Kohl’s fourth-quarter net sales of $5.18 billion fell from $5.71 billion during the same period in 2023. Full-year 2024 sales came in at $15.39 billion, down from $16.59 billion in 2023. Both the fourth quarter and full year of fiscal 2023 were one week longer than their 2024 counterparts.
    Quarterly comparable sales, defined by Kohl’s as sales from e-commerce and stores open for at least 12 months, fell 6.7% year over year. Wall Street expected a 6.8% decrease, according to StreetAccount.
    Kohl’s reported a net income for the fourth quarter of $48 million, or 43 cents per share, compared with a net income of $186 million, or $1.67 per share, during the fourth quarter of 2023.
    Adjusting for costs associated with impairments and store closures, Kohl’s reported fourth-quarter earnings of 95 cents per share. More

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    Ad spending on women’s sports more than doubled last year

    A new report by EDO found TV advertisers spent $244 million on women’s sports in 2024, a year-over-year increase of 139%.
    Basketball, soccer and tennis were among the top sports for ad engagement.
    Advertisements that were contextually relevant and featured women athletes performed especially well across the board.

    The New York Liberty celebrate after winning the 2024 WNBA Finals at Barclays Center.
    Wendell Cruz | Usa Today Sports Via Reuters Con

    Women’s sports enjoyed a marquee year across the board in 2024, but especially in television advertising, according to TV marketing firm EDO.
    In a report released Tuesday, EDO found that TV advertisers spent $244 million on women’s sports in 2024, a year-over-year increase of 139%, with basketball receiving the most investment of any sport. That corresponded with a 131% year-over-year increase in women’s sports TV viewership, according to EDO’s estimates.

    Ads during women’s sports programs were 40% more impactful than the average primetime advertisement, according to EDO, as measured by searches for brands after an ad aired.
    Women’s sports is on track to become one of the most valuable areas for advertisers, said Laura Grover, senior vice president and head of client solutions at EDO.
    “What really jumped out to me is that a lot of the brands that are really seeing gains are ones that have had a very minimal presence on TV in the past,” Grover said. “They’re leaning into these new opportunities in women’s sports, and they’re really paying off.”
    The top-spending industries on women’s sports in 2024 were autos, pharmaceuticals, internet and telecommunications, financial services, and insurance, according to the report. The highest-spending brands were State Farm, AT&T, Allstate, Nike and AbbVie’s Skyrizi, while the most effective brands for engagement were Skims, Poppi, Oura, Fabletics and Bombas.
    Overall, the most engaging women’s sports events for advertisers were college lacrosse (25% more effective than the average 2024 women’s sports program), the U.S. Open semifinals and finals (20% more effective), the NCAA Tournament for basketball (19% more effective), college gymnastics and the WNBA Finals (both 18% more effective than the overall category).

    Basketball leads

    Although ad spending and viewership growth expanded across all women’s sports, basketball made notable strides with both programming and star power. The decisive Game 5 of the WNBA Finals was the most-watched Finals game in 25 years, and the league set a regular-season record for unique viewers in 2024.
    According to EDO, ads that aired during the WNBA playoffs created 24% more engagement per person than the average primetime spot, and engagement rates for ads during the WNBA’s regular season, playoffs and finals all grew year over year.
    As brand ambassadors, individual WNBA athletes also boosted advertisers. The most influential WNBA players in terms of ads were Cameron Brink of the Los Angeles Sparks, A’ja Wilson of the Las Vegas Aces and Caitlin Clark of the Indiana Fever. Ads that featured Brink, such as commercials for Skims and New Balance, were significantly more effective than the average WNBA ad, according to EDO.
    Advertisements that were contextually relevant and featured female athletes performed especially well across the board. Commercials starring WNBA players during WNBA games were 103% more effective than ones that didn’t, the report said. In soccer, ads with National Women’s Soccer League players that aired during NWSL games were 39% more effective than ads without them.
    “When you’re bringing in the talent and you’re present in an environment in an authentic way, which a lot of times is through contextual advertising, we tend to see that that is really impactful with audiences,” Grover said.
    At the collegiate basketball level, EDO found that ads during the 2024 women’s NCAA Tournament were 18% more effective than the average primetime ad. The tournament championship was the most-watched NCAA women’s college basketball game ever.
    Restaurant chains lead the pack in engagement for the current college basketball season, with Marco’s Pizza, Restaurant Brands International’s Popeyes, Papa John’s and McDonald’s claiming four of the top five spots.
    Current college basketball stars are also driving engagement with ads. Grover said State Farm’s ad featuring JuJu Watkins of USC has been 20% more impactful than the average State Farm commercial.
    NCAA women’s gymnastics, lacrosse and volleyball also rose in popularity. Gymnastics and lacrosse both saw double-digit gains in ad engagement compared to 2023, while commercials during the 2024 volleyball championship were 250% more impactful than the average primetime ad. More