Raphael Stevens

In this articleTSLABEVER-NLElon Musk brought electric vehicles into the mainstream with Tesla. Now the EV company is grappling with the consequences of its own innovation, former Ford Motor CEO Mark Fields told CNBC on Wednesday.”One of the many things he did is he pushed the industry toward taking EV seriously,” Fields said of Musk, the chief executive of Tesla. “He has real competition now, and that’s why you’re seeing some of their share in some of the major markets under a lot of pressure.”Tesla shares fell for the third-straight session against the backdrop of multiple challenging headlines for the car manufacturer. One, in particular, is that the San Carlos, California-based company lost some of its grip on the electric vehicle market in April.Fields was critical of Tesla’s reliance on selling carbon credits to supplement its profits, suggesting it’s a harbinger of more challenges.”When you look at their year-to-date earnings and their earnings last year, they made a heck of a lot more in selling CO2 credits than they did their total company profit and net profit,” Fields said. “As those credits dry up, there’s going to be a lot of pressure to make money and better margins on their vehicles.”According to Credit Suisse analyst Dan Levy, Tesla’s global market share was 11% in April, down from 29% in March. He noted share losses in the China, Europe and U.S. markets.Fields attributed the shift in EV market share to traditional auto giants, such as General Motors and Ford, making headway in the space as new products are announced and come online.He highlighted that Volkswagen is now leading in EVs in Europe and the Ford Mach E is taking share in the U.S. Ford, which Fields led between 2014 and 2017, in May revealed its electric F-150 to much fanfare.After soaring in 2020, Tesla shares have dropped more than 14% so far in 2021. The stock, which trades more like a tech stock, closed 3% lower Wednesday at $605.12 a share.Shares of traditional car companies, taking the form of cyclical stocks, are up double digits this year and have outgained the market through Wednesday.Ford shares have put up some of the biggest gains, rallying almost 69% this year to $14.91 at the close Wednesday. More

In this articleCHDNThe company that operates Churchill Downs Racetrack on Wednesday suspended horse trainer Bob Baffert for two years, just hours after attorneys revealed that his Kentucky Derby winner Medina Spirit had failed a second drug test for the banned steroid betamethasone.The suspension means that no horse trained by him or by Bob Baffert Racing Stables can race at any track owned by Churchill Downs Inc. through the conclusion of the 2023 Spring Meet at Churchill Downs.That meet includes the Kentucky Derby, the first jewel in thoroughbred horse racing’s Triple Crown.Kentucky Horse Racing Commission officials have yet to rule on whether to overturn Medina Spirit’s victory in the Derby because of the two failed tests.Baffert was temporarily suspended in mid-May by New York racing officials, effectively blocking Medina Spirit or other Baffert horses from racing Saturday on Long Island in the Belmont Stakes, the last leg of the Triple Crown.Bill Carstanjen, CEO of Churchill Downs, cited Baffert’s prior history of failed drug tests by horses in announcing the two-year ban on the trainer, whose seven Derby wins are the most of any trainer.Baffert has had five horses fail drug tests this year alone.Carstanjen also took a shot a Baffert for floating the idea that Medina Spirit only had betamethasone in its system because of an antifungal ointment that was applied to the horse.”CDI has consistently advocated for strict medication regulations so that we can confidently ensure that horses are fit to race and the races are conducted fairly,” Carstanjen said in a statement.”Reckless practices and substance violations that jeopardize the safety of our equine and human athletes or compromise the integrity of our sport are not acceptable and as a company we must take measures to demonstrate that they will not be tolerated,” Carstanjen said.Bob Baffert, trainer of Kentucky Derby winner Medina Spirit, stands near the track at Churchill Downs in Louisville, Kentucky, April 28, 2021.Bryan Woolston | Reuters”Mr. Baffert’s record of testing failures threatens public confidence in thoroughbred racing and the reputation of the Kentucky Derby,” the CEO said.”Given these repeated failures over the last year, including the increasingly extraordinary explanations, we firmly believe that asserting our rights to impose these measures is our duty and responsibility.” Churchill Downs Inc. said it reserved the right to extend Baffert’s suspension “if there are additional violations in any racing jurisdiction.”Baffert on May 9 revealed that Medina Spirit had tested positive for betamethasone, a steroid used for therapeutic purposes in horses, in a sample taken the day of its Derby win a week earlier. Baffert said 21 picograms of the drug were found in the sample.The drug, typically used to treat pain and swelling in a horse’s joints, is legal for use in Kentucky.But any trace of it on race day in the state is grounds for disqualification if a second test confirms it was in the blood on that day.On Wednesday, lawyers for Medina Spirit’s owner, Amr Zedan, and Baffert announced that the second test of a blood sample had also found betamethasone.Clark Brewster, the attorney for the Zedan, told CNBC that officials are allowing the Medina Spirit team to have another lab analyze a third sample from the horse.That test, Brewster said, could determine whether there are chemicals that would support Baffert’s claim that the betamethasone may have come from a topical ointment known as Otomax, and not from an injection.Brewster noted that picogram is just a trillionth of a gram.”Hopefully they will make a reasonable judgment,” Brewster said, referring to the review of the drug test results by the Kentucky Horse Racing Commission.”I think there will be unanimity on the subject that this is an infinitesimal amount that could not have affected the race,” the lawyer said.Marty Irby, executive director of the advocacy group Animal Wellness Action, in a statement, said that Baffert’s suspension by Churchill Down was a “swift and meaningful action … but the penalty falls short of seeing justice and that track as well as others around the nation should consider a greater penalty for the trainer.””He’s sneered at weak penalties for doping violations again and again,” Irby said. “Baffert will only get the message with a long-term suspension from the sport.”On the upside, it is comforting to know that Baffert will not be allowed to compete at the Kentucky Derby until after the Horseracing Integrity and Safety Act – that bans race day doping in the sport – has been implemented and taken full effect.” Maryland racing officials in May allowed Medina Spirit and another Baffert-trained horse, Concert Tour, to enter the Preakness Stakes in Baltimore after getting what they called “a binding commitment” from Baffert for “full transparency of medical and testing results that will allow for all results to be released to the public.”Medina Spirit finished third in the Preakness, the second leg of the Triple Crown, trailing behind the winner, Rombauer, and Midnight Bourbon. Concert Tour finished ninth.Disclosure: CNBC parent NBCUniversal owns NBC and NBC Sports, which broadcast the Triple Crown races. More

President Joe Biden speaks on Covid-19 response and vaccinations in the South Court Auditorium of the Eisenhower Executive Office Building, next to the White House, in Washington, DC, on June 2, 2021.Mandel Ngan | AFP | Getty ImagesPresident Joe Biden on Wednesday doubled down on his administration’s efforts to get more Americans vaccinated against Covid-19 by July 4, a date the president has said he hopes will mark a turning point in the pandemic in the U.S.In early May, Biden announced his administration’s new goals in the fight against the coronavirus: getting 70% of U.S. adults to receive at least one dose of a Covid vaccine and having 160 million adults fully vaccinated by Independence Day.Speaking from the White House on Wednesday, Biden announced June as the “national month of action” to get more Americans vaccinated by July 4. He urged unvaccinated Americans to get the shots, saying they are still at risk of becoming seriously ill, dying and spreading the disease to others, especially once the U.S. approaches the fall.”Getting a vaccine is not a partisan act,” Biden said, noting that the Pfizer and Moderna Covid vaccines were authorized under former Republican President Donald Trump.”I don’t want to see the country that is already divided be divided in a new way: between places where people live free from fear of Covid and places, when the fall arrives, deaths and severe illnesses return,” he said. “The vaccine is free, safe and effective.”The president outlined his administration’s approach to its nationwide vaccine campaign, which he said would mobilize national organizations, community- and faith-based partners, celebrities, athletes and other influential groups.CNBC Health & Science Read CNBC’s latest global coverage of the Covid pandemic:Delta variant first found in India spreads to 62 countries, WHO says Biden to double down on U.S. efforts to get more Americans vaccinated by the Fourth of July   Taiwan outbreak shows that’s not a long-term solution, says professor U.S. begins study testing mix-and-match Covid vaccine booster shots Moderna applies for full FDA approval of its Covid vaccine In details released ahead of Biden’s speech, the White House also said the administration has asked pharmacies to extend their hours for the month of June and disclosed it is partnering with child-care providers to offer free services to all parents getting vaccinated or recovering from the shots.KinderCare and Learning Care Group as well as more than 500 YMCAs will offer the child services, Biden said later Wednesday.The administration is also organizing efforts to call and text people in areas with low vaccination rates and is challenging mayors to compete with each other to see which city can increase shot rates the quickest, according to an email from the White House.Other administration efforts include “Shots at the Shop,” an initiative that will engage Black-owned barbershops and beauty salons across the country to support local vaccine education and outreach efforts.Biden and Vice President Kamala Harris will also lead a tour – called the “We Can Do This” National Vaccination Tour – which will highlight “the ease of getting vaccinated, encourage vaccinations, and energize and mobilize grassroots vaccine education and outreach efforts,” according to the White House.On Wednesday, Biden also touted the White House’s partnership with Uber and Lyft to offer free rides to vaccination sites until July 4.”America is heading into a summer dramatically different from last summer,” he said. “Safely vaccinated people are shedding their masks and greeting one another with a smile.”As of Tuesday, more than 162 million U.S. adults, or 62.8% of people 18 and over, have received at least one Covid vaccine, according to data compiled by the Centers for Disease Control and Prevention. More than 133 million U.S. adults are fully vaccinated, according to the CDC.There was an average of 1.2 million Covid shots administered every day over the last week in the U.S. But some of the data over the long holiday weekend is incomplete, so vaccination rates may be higher.Public health experts say Biden’s vaccination goal may pose a challenge for his administration as the U.S. has already inoculated those most enthusiastic about getting a vaccine.Kevin Hensley is given the J&J COVID vaccine in coordination with the Cook County Health Dept. and the Chicago White Sox. Recipients were given a $25 card for discounts on concessions before Game One of a doubleheader at Guaranteed Rate Field on May 29, 2021 in Chicago, Illinois.David Banks | Getty ImagesIn order to administer millions of more inoculations in the next four weeks, the White House has said the president will take additional steps to encourage more people to get vaccinated and make it easier for them to do so.In addition to the steps announced Wednedsay, the Biden administration has worked to make getting a vaccine “as easy as ever” with many vaccination sites across the U.S. offering walk-ins.The administration in April launched a massive campaign to persuade more Americans to take the vaccines, which is using social media and virtual events where celebrities and athletes answer people’s lingering questions about the vaccines.The CDC has updated its public health guidance to say that fully vaccinated people no longer need to wear a face mask or stay 6 feet away from others in most settings, whether outdoors or indoors. Many public health experts say the change was designed to encourage more people to get vaccinated. More

In this articleGMEAMCBB-CAMario Tama | Getty ImagesAMC Entertainment’s stock continued its wild ride Wednesday, with the price per share rising more than 100% and prompting a halt in its trading several times.AMC is one of several so-called meme stocks that have seen a surge in interest from individual investors this year, along with names like GameStop and BlackBerry.Financial advisors often caution against getting caught up in such frenzies. Yet in a recent survey, 34% of advisors admitted their clients had bought GameStop, while 20% of them had purchased the stock themselves, according to the Journal of Financial Planning and the Financial Planning Association.More from Personal Finance:How a SPAC frenzy could lead to riskier deals Ally Bank is eliminating overdraft fees for customersHow to find the best Amazon Prime Day dealsFor individual investors, the challenge can be taking on bets alongside professional investors such as short sellers, whose activity can also trigger big moves.”Often you hear the narrative that it’s just retail traders, but that’s not the case,” wrote JJ Kinahan, TD Ameritrade’s chief market strategist, in a recent market update.”The heavy volume suggests there’s a lot of big firms in there, also,” he said.For example, distressed investment firm Mudrick Capital reportedly bought and sold 8.5 million AMC shares on Tuesday.Understandably, investors may be so caught up in the gains that they forget to remember the potential for losses.If you’re looking to dabble in meme stock names, it’s important to remember you’re really playing a game like musical chairs, and behave accordingly, according to Dan Egan, vice president of behavioral finance and investing at Betterment.”Half the game is figuring out how to sell before it crashes,” Egan said.Be ready to lose moneyWhen you pay for a ticket to a sporting event, you part with a sum of money but still get to see the game.Investors in meme stocks should start with the same approach, Egan said.If you invest in a stock like AMC, you should have a “level of chill” that you’re doing it because it’s entertaining, and if you lose money, that’s fine, Egan said.Zoom In IconArrows pointing outwardsPlan an exit strategyBefore or while you’re invested in a stock, it also benefits you to identify the point at which you would sell it ahead of time.And be sure you hold yourself to that promise, Egan said.”What often happens to people emotionally is they get to that price point, but then are like, ‘Wait, what if it goes higher?'” Egan said.Anyone considering trading these should be aware of how volatile they can be.JJ Kinahanchief market strategist at TD AmeritradeTo avoid that, it’s beneficial to set up a way for the transaction to happen automatically so that your emotions in the moment do not interfere.”Anyone considering trading these should be aware of how volatile they can be, and go in prepared to be disciplined about levels where they want to get in and get out,” Kinahan said of stocks like AMC or GameStop.Avoid a team mentalityIt can be exhilarating to participate in an investment where your activity contributes to price moves and you can commiserate with other investors on message boards.”The communal aspect of it, the social aspect of it, is a really hard core drug to try and wean yourself off of,” Egan said.What’s more, that can discourage you from selling the stock, which would mean you’re no longer a part of a team or movement.It’s important to remember that you still need to put yourself first.”The leaders of the movement aren’t going to tell you before they sell,” Egan said.Rebalance along the wayBecause of the wild fluctuations trendy stocks are seeing, your initial 5% allocation could climb to 20% of your portfolio while you’re not paying attention.Try to rebalance when your position reaches sizes you wouldn’t have invested in in the first place, Egan said.It’s also important to remember that when stocks have done well, they also have further to fall and more potential for loss, he said.One way to still own the headline names without as much risk is to put your money in investments such as diversified exchange-traded funds instead, Egan said. More

In this articleBBBYShares of Bed Bath & Beyond surged more than 60% Wednesday as a number of so-called meme stocks rallied.The stock had been in positive territory after the retailer said it would launch three private label brands this quarter, putting a key element of its turnaround strategy ahead of schedule. However, the stock continued to gain momentum, caught up in a frenzy that was driving up the value of companies such as AMC Entertainment and BlackBerry as well.Bed Bath & Beyond shares closed at $44.19, up $16.93, or 62%. The stock has added 134% this year, giving it a market value of more than $4.7 billion. Some of the gains have been helped by retail investors who have been placing speculative bets on a number of heavily shorted stocks.More than 106.8 million shares changed hands on Wednesday. Over the past 10 days, Bed Bath shares have traded an average of 5.65 million shares a day. The retailer is trying to turn around its performance. It has exited noncore businesses, closed underperforming stores and is using the store brands as a way to draw in shoppers with products that can only be purchased at Bed Bath & Beyond. Private label brands have been a key sales driver at Target, where Bed Bath & Beyond CEO Mark Tritton previously served as chief merchandising officer.Bed Bath & Beyond said Wednesday it will have introduced six new brands within the past five months — and a month earlier than expected. Notably, the products will be in stores in time for the back-to-school shopping season, which is the second-biggest period for consumer spending after the Christmas holidays.”What we are seeing is a period of transition where we are exiting older products … and getting ready to put in those new items,” Tritton said Wednesday in an interview with CNBC’s Courtney Reagan on “Squawk on the Street.” He expects the bulk of new products to enter the stores over the next few months.Bed Bath & Beyond’s new brands include: Our Table, a line of kitchen and dining ware; Wild Sage, a home collection targeted to younger consumers with eclectic taste; and Squared Away, a line of storage, organization and cleaning products.Although there will be a transition period as the new products arrive on shelves, Tritton expects shoppers stocking up to head back to college will see many of the new items.”They are going to find six new owned brands that feature great price points, great quality and great style for them to buy from that weren’t there last year,” Tritton said. More