Raphael Stevens

In this articleTSLATesla has taken another tumble this week.The stock has fallen 4% since Monday, extending a sell-off that has dragged shares down nearly 40% from a high set in January. The latest sell-off is tied to the sharp drop in bitcoin – Tesla CEO Elon Musk last week said the company would reverse a decision to allow purchases made with the cryptocurrency, but since clarified it will still hold its investment in the coin.Tesla could see more pain, warned one chart watcher.”It broke below trend, and we have to remember, when we analyze stocks such as Tesla, they are prone to overreact — overreact on the upside, as well as overreact on the downside,” said JC O’Hara, chief market technician at MKM Partners. Zoom In IconArrows pointing outwards”When Tesla was in an uptrend, above its 200-day moving average, those overreactions were indeed positive and we just look back to January to see how stretched it can get. Now trends have shifted, breaking below the 200-day moving average, breaking below a long-term uptrend. So I believe the overreaction will be to the downside,” O’Hara told CNBC’s “Trading Nation” on Wednesday.Shares have fallen 20% this year, the worst performance in the S&P 100. It has also broken below its 50-day and 200-day moving average.  “We’re right around $550 right now, good place for a short little bounce, but I would want to see the overreaction down to $450. I think that’s the proper level to get back involved with Tesla,” he said.A move to $450 implies another 20% downside. It last traded at that level last November. It closed Wednesday just above $563.Delano Saporu, founder of New Street Advisors, says the tide has turned against all growth stocks — and Tesla is particularly susceptible as a well-known name in the group.”The backdrop is really against Tesla right now, for a lot of growth names, so we’re seeing the sellers come out in force. And I think the one thing that would kind of bring buyers out, especially myself, would be looking at the valuation,” Saporu said during the same interview.Tesla trades at 109 times forward earnings, well above the 21 times forward multiple for the S&P 500.”We had strong earnings from Tesla and that still didn’t move the stock higher. Everything else in the backdrop is just against some of these growth names right now,” said Saporu.Tesla reported record net income and 74% revenue growth in its March-ended quarter.Disclaimer More

Exterior of Panera Bread’s Next Gen designSource: Panera BreadPanera Bread is the latest restaurant chain to announce a new design inspired by changes in consumer behavior during the coronavirus pandemic.Its new layout looks to transform the soup and sandwich chain into a local neighborhood bakery — just with a little bit more tech savvy. In a bid to build customer loyalty, it is adding familiar touches to make the in-restaurant experience more personal than visiting a nameless chain, while its use of technology is meant to make the visit as seamless and easy as possible.Taco Bell, Burger King and Shake Shack are among the eateries that have unveiled bold plans for locations with less seating, double drive-thru lanes and more technology. Panera’s design has those features as well, but it’s setting itself apart from the pack by including the dine-in experience, too.”Of course we are adapting to an off-premise world, with convenience and access and all that, but also we are doubling down on the dine-in experience, which makes Panera so special,” chief brand and concept officer Eduard Luz said in an interview.Like Starbucks, Panera has long used comfortable seating at its locations as a way to draw in customers who might use the restaurant as a meeting place. Luz said diners are returning to existing Panera locations as states roll back Covid restrictions. The Next Gen design still includes plenty of cozy seating — both indoor and outdoor.For dine-in customers, Panera wants to create an experience that reminds customers of their neighborhood bakeries. For years, the chain’s bakers have come into the cafes at night to bake fresh bread. The Next Gen design puts the bakery ovens out in the open and brings the bakers in during the day, so customers can smell and see the bread and pastries bake. Internally, Panera calls it “bakery theater,” according to Luz.”You’ll be able to sample and taste whatever’s coming out of the oven,” he said.Rendering of the interior of Panera Bread’s latest designSource: Panera BreadAt the same time, the new design gives customers a multitude of ways of ordering and receiving their food, all with convenience in mind.”It’s very packed with digital innovation and personalization,” Luz said.For example, if consumers use their phones to order, they can have an entirely contactless experience. They can also choose to order from a digital kiosk, at the counter or via the drive-thru. Additionally, the restaurant will automatically recognize loyalty program members, whether they go through the drive-thru or enter the location. Luz said that the company is considering several options to make this a reality, including scanning a code or microfencing technology.”Once you are identified, the vision is that we interact and acknowledge and treat you as a person, with preferences,” he said. “It’s what you expect when you go to a neighborhood cafe.”The restaurant will also include a double-drive thru, with one lane dedicated to picking up digital orders. About half of Panera’s current restaurant footprint includes a drive-thru lane, but double-drive thrus are more rare.The first location with the new design is slated to open in November in Ballwin, Missouri, outside the chain’s hometown of St. Louis. Three existing locations are testing the open bakery format. Every Panera restaurant built or remodeled will follow the design, according to Luz, and most will be in suburban areas because of the drive-thru lanes.”We don’t disclose how many, but we expect an aggressive expansion given how confident we are in the new design,” he said.Panera is privately held by Krispy Kreme owner JAB Holding, so it isn’t required to disclose financial results. However, The New York Times reported in late April that JAB is considering taking Panera public again. More

People walk on their lunch break at the Raffles Place financial business district in Singapore on May 5, 2021.Roslan Rahman | AFP | Getty ImagesSINGAPORE — Singapore has ordered Facebook, Twitter and a local publisher to correct what it says is a false statement circulating that implies a new coronavirus variant originated in the city-state and risks spreading to India.Under a law aimed at preventing the spread of falsehoods online — officially named POFMA, or Protection from Online Falsehoods and Manipulation Act — Singapore’s Health Minister Ong Ye Kung instructed the two social media giants and SPH Magazines to issue a correction notice to their users in Singapore. SPH Magazines owns a popular forum called HardwareZone.”There is no new ‘Singapore’ variant of Covid-19. Neither is there evidence of any Covid-19 variant that is ‘extremely dangerous for kids,'” Singapore’s Ministry of Health said.”The strain that is prevalent in many of the Covid-19 cases detected in Singapore in recent weeks is the B.1.617.2 variant, which originated from India,” it added. “The existence and spread of the B.1.617.2 variant within India predates the detection of the variant in Singapore, and this has been publicly known and reported by various media sources from as early as 5 May 2021.”The Covid variant B.1.617 was first detected in India last year. The World Health Organization recently dubbed the B.1.617 a “variant of concern,” which indicates that it’s become a global health threat.What happened?The move from Singapore came after unsubstantiated comments from an Indian politician this week sparked a diplomatic incident between the two countries.Delhi Chief Minister Arvind Kejriwal on Tuesday tweeted that a new coronavirus variant in Singapore is said to be extremely dangerous for children and could result in a third wave in India. He did not provide any evidence to back his claims.Instead, he appealed to the Indian central government to suspend flights with the Southeast Asian country immediately and prioritize vaccination options for children. His claims were carried by major Indian news outlets.Singapore’s health ministry dismissed the claims, saying there was “no truth whatsoever in the assertions.”What was the reaction?Kejriwal was publicly rebuked by the foreign ministers of both countries.”Politicians should stick to facts! There is no ‘Singapore variant,'” Vivian Balakrishnan, Singapore’s foreign minister, said in a tweet in response to Kejriwal’s claim.Singapore’s Ministry of Foreign Affairs said Wednesday it regrets the “unfounded assertions” made by Kejriwal.”MFA is disappointed that a prominent political figure had failed to ascertain the facts before making such claims. MFA met the High Commissioner of India P Kumaran this morning to express these concerns,” the foreign ministry said.India’s External Affairs Minister Subrahmanyam Jaishankar said the two countries have been “solid partners” in the fight against the pandemic.”However, irresponsible comments from those who should know better can damage long-standing partnerships. So, let me clarify — Delhi CM does not speak for India,” he said on Twitter. Jaishankar previously served as India’s high commissioner to Singapore.India’s civil aviation minister Hardeep Singh Puri responded to Kejriwal’s comments on Twitter, and pointed out that international flights to India have been suspended since March 2020.He also pointed out that India and Singapore do not have an air travel bubble and that New Delhi only runs repatriation flights from the city-state to bring back stranded Indians.”Still, we have our eyes on the situation. All precautions are being taken,” Puri said, according to a CNBC translation of his remarks in Hindi.Covid in India and SingaporeSingapore has seen a recent spike in locally transmitted cases, which prompted the government to step up social restrictions again.While a number of children in the city-state have been recently infected with Covid-19, Education Minister Chan Chun Sing said Sunday that none of them are seriously ill but the situation is still worrying, according to the Straits Times.Still, Singapore announced Tuesday it will allow children aged between 12 and 15 to be inoculated.Singapore has reported more than 61,600 cases so far and 31 deaths, according to data from Johns Hopkins University.India is the second worst-infected country in the world behind the United States and is facing a devastating second wave. So far, India has reported more than 25 million cases and over 287,000 deaths, but experts suggest the numbers have been severely undercounted.Delhi has been one of the worst-hit regions in the country where hospitals have faced shortages in hospital beds, oxygen supply and medicines to treat Covid-19 patients. More

Dr. Anthony Fauci, Director at the National Institute of Allergy and Infectious Diseases, delivers remarks during a press briefing with Press Secretary Jen Psaki at the White House in Washington, U.S., April 13, 2021.Tom Brenner | ReutersDr. Anthony Fauci, chief medical advisor to the White House, said Wednesday that Covid-19 infections are decreasing in every state in the U.S.”All 50 states have now shown decreases in the number of infections,” Fauci said in an interview with Axios, suggesting that the widespread declines will make it safer for Americans to resume activities such as indoor dining at restaurants.The U.S. is reporting an average of about 31,200 new cases per day over the past week, data compiled by Johns Hopkins University shows, down 18% from a week ago. Case counts have been on a downward trend since the country’s most recent high point about a month ago in mid-April, when the country was seeing more than 71,000 cases per day.Fauci did not specify over what time period these state-level declines in infections have occurred. A CNBC analysis of Johns Hopkins data shows that average daily case counts have declined by 5% or more in 40 states over the past week.The data is murky in some places, such as Alabama, which Johns Hopkins says has been publishing backlogged case counts in recent days, making the most recent trend difficult to interpret.Fauci’s statement suggests that the easing of the outbreak is being seen broadly across the country, rather than being more localized with a certain state or region responsible for the declining numbers. More

Robert Kramer, CEO, Emergent BioSolutionsScott Mlyn | CNBCThe FDA is holding more than 100 million Johnson & Johnson Covid-19 vaccine doses for further testing after the agency found multiple safety violations at a plant — run by Emergent BioSolutions — that was helping make the shots, Emergent CEO Robert Kramer told lawmakers Wednesday.The U.S. put J&J in charge of the Baltimore plant last month after learning that Emergent, a federal contractor that had been making key ingredients for J&J and AstraZeneca, cross-contaminated the two shots. Kramer is testifying before House lawmakers Wednesday about poor conditions at the plant said to be responsible for ruining millions of J&J Covid-19 shots.During the hearing before the House Select Subcommittee on the Coronavirus Crisis, Rep. Steve Scalise, R-La., asked Kramer how many doses of the J&J vaccine are being held by the Food and Drug Administration but weren’t contaminated.”There are a significant number of doses that we’ve manufactured. Again, we manufacture the bulk drug substances,” Kramer told the lawmaker. “It has been reported in a number of news agencies that there are probably over 100 million doses of the J&J vaccine that we’ve manufactured that are now being evaluated by the FDA for potential release and availability.”CNBC Health & Science Read CNBC’s latest coverage of the Covid pandemic:CDC chief says lab-based origin of Covid possible but animal host is most commonEmergent CEO says FDA is holding over 100 million J&J Covid vaccine doses for further testing after botched doses Employees at plant that ruined millions of J&J Covid vaccine doses failed to shower, change clothes60% of U.S. adults have received at least one vaccine dose as case counts fall further India’s daily death toll crosses 4,500 as Covid-19 cases stay below 300,000 Texas Gov. Abbott threatens to fine cities and local officials if they impose mask mandatesAs more colleges decide to require Covid vaccines for students, some protest Olympic organizers should mandate Covid vaccines for athletes and fans at Tokyo Games  From employer mandates to TV ads: What full FDA approval could mean for Covid vaccines India Covid variant set to be dominant in UK ‘in a matter of days,’ posing unknown dangersKramer later indicated that the regulator requested additional testing on the doses.”The FDA is evaluating, to my understanding, the doses that had been manufactured for bulk drug substances, most of which has been provided to J&J,” Kramer said. “As far as I understand, there had been a request for some additional testing on all of those lots and doses that had been provided by J&J to the FDA. And it’s under their evaluation right now.”J&J declined to comment on the number of doses.In a statement, an FDA spokesperson said, “We are working closely with the companies for whom products were manufactured in order to come to resolution on the disposition of the products.”At the hearing, Kramer expressed disappointment that conditions at the plant led to doses being ruined and manufacturing suspended.Representative James Clyburn (D-SC) speaks during a House Select Subcommittee on the Coronavirus Crisis hearing in the Rayburn House Office Building on Capitol Hill in Washington, DC on May 19, 2021.Stefani Reynolds | AFP | Getty ImagesAn inspection by the FDA found the plant was unsanitary and unsuitable to manufacture the shots. In a 13-page report, inspectors wrote that the facility used to manufacture the vaccine was “not maintained in a clean and sanitary condition” and was “not of suitable size, design, and location to facilitate cleaning, maintenance, and proper operations.”FDA inspectors said paint was observed to be peeling in multiple areas and walls were damaged that could impact Emergent’s “ability to adequately clean and disinfect.” They also noted that employees did not follow standard operating procedures in handling waste or vaccine manufacturing materials to ensure they weren’t contaminated.Some employees at the plant in Baltimore failed to shower or change clothes, which is required when working in the factory. More

In this articleLBShoppers pass in front of a Victoria’s Secret store at a mall in San Diego, California, April 22, 2021.Bing Guan | Bloomberg | Getty ImagesVictoria’s Secret parent L Brands on Wednesday reported first-quarter earnings and sales that topped analysts’ estimates, driven by momentum across its business and more people paying full price for its products.Its stock was recently down more than 1% in extended trading.Here’s how the company did for the quarter ended May 1, compared with what analysts were anticipating, based on a Refinitiv survey:Earnings per share: $1.25 adjusted vs. $1.21 expectedRevenue: $3.02 billion vs. $3.01 billion expectedNet income rose to $276.6 million, or 97 cents per share, compared with a loss of $296.9 million, or $1.07 per share, a year earlier. Excluding one-time charges, L Brands earned $1.25 per share, beating the $1.21 that analysts were forecasting.Total sales surged more than 80% to $3.02 billion from $1.65 billion a year earlier. That topped estimates for $3.01 billion.Total same-store sales were up 21% year over year, compared with a 4% increase in the year-ago period.Same-store sales at Victoria’s Secret rose 25%, compared with a 15% drop a year earlier. Same-store sales at Bath & Body Works climbed 16%, compared with a 41% jump a year earlier, when many consumers were stocking up on hand sanitizers at the onset of the Covid pandemic.L Brands said sales rose throughout the quarter thanks to stimulus checks and relaxed pandemic-related restrictions in stores. While it is difficult to quantify the exact benefit from government stimulus, the company estimated that the payouts boosted sales by about $125 million — a $50 million benefit at Bath & Body Works and $75 million at Victoria’s Secret.The company had previously announced its expectations for the first quarter and raised them multiple times, citing ongoing, heightened momentum for its Victoria’s Secret lingerie brand.Management said in prepared remarks released Wednesday that customers have been “responding positively” to new merchandise at Victoria’s Secret, including marketing from its first-ever Mother’s Day campaign with a pregnant model.”We are beginning to tell the story of our brand repositioning through our marketing,” the company said.Victoria’s Secret had long held a dominant market share in the lingerie industry, but had fallen out of favor due to its overtly sexy marketing that shunned certain body types. That marketing message wasn’t working for many women, and they had started shopping at other brands, such as American Eagle’s Aerie, that embraced inclusivity and comfort. Victoria’s Secret has had to pivot to meet their needs.By this fall, L Brands will be spinning off its Victoria’s Secret business into its own publicly traded entity and said it wouldn’t provide a forecast for the rest of the year.The company also named the incoming chief financial officers of the two new businesses. Wendy Arlin, currently senior vice president of finance and controller for L Brands, will become Bath & Body Works CFO. Former Big Lots CFO Tim Johnson will become Victoria’s Secret CFO.For the second quarter, L Brands is calling for adjusted earnings per share in a range of 80 cents to $1. Analysts had been looking for 76 cents per share, according to Refinitiv.It projects second-quarter sales will rise between 10% and 15% from 2019 levels.L Brands has said the split will allow both of its brands to better focus on growth and have greater financial flexibility to adapt to a changing retail landscape. It had been contemplating either a spinoff or a sale but said the spinoff ended up being the best option for the business to fetch the highest value.As of Wednesday’s market close, L Brands shares are up about 82% year to date. The company has a market cap of $18.8 billion.Find the full press release from L Brands here. More

Anne Schuchat, director of the Centers for Disease Control (CDC), speaks during a Senate Appropriations Subcommittee hearing in Washington, D.C., U.S., on Wednesday, May 19, 2021.Greg Nash | Bloomberg | Getty ImagesCenters for Disease Control and Prevention officials said Wednesday they are expecting data from trials testing Covid-19 vaccines on pregnant women this summer and on children as young as 6 months old by the end of the year.Principal Deputy Director Dr. Anne Schuchat told lawmakers that the CDC has already received “reassuring data” on vaccines given to women in their third trimester. “We’ll be expecting this summer to have even more data, particularly about vaccines given earlier in pregnancy,” she said at a Senate hearing on the agency’s annual budget.Although the vaccines haven’t been cleared for use in pregnant women yet, Schuchat said pregnant women should have access to the vaccines because they can get sicker from Covid than other people.CNBC Health & Science Read CNBC’s latest coverage of the Covid pandemic:CDC chief says lab-based origin of Covid possible but animal host is most commonEmergent CEO says FDA is holding over 100 million J&J Covid vaccine doses for further testing after botched doses Employees at plant that ruined millions of J&J Covid vaccine doses failed to shower, change clothes60% of U.S. adults have received at least one vaccine dose as case counts fall further India’s daily death toll crosses 4,500 as Covid-19 cases stay below 300,000 Texas Gov. Abbott threatens to fine cities and local officials if they impose mask mandatesAs more colleges decide to require Covid vaccines for students, some protest Olympic organizers should mandate Covid vaccines for athletes and fans at Tokyo Games  From employer mandates to TV ads: What full FDA approval could mean for Covid vaccines India Covid variant set to be dominant in UK ‘in a matter of days,’ posing unknown dangers”Women who are pregnant and get Covid have worse experiences with the infection than do non-pregnant women,” Schuchat said. “More time in the intensive care unit, more risk of severe outcomes including those rare deaths. Covid also complicates pregnancy by increasing the risk of prematurity and leading to other types of complications.”Schuchat also said new data shows vaccinated mothers can transfer their Covid antibodies to their babies while breastfeeding.Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, gives an opening statement during a Senate Health, Education, Labor and Pensions Committee hearing to discuss the on-going federal response to COVID-19, at the U.S. Capitol in Washington, D.C., May 11, 2021.Greg Nash | Pool | ReutersDr. Anthony Fauci, chief medical advisor to the White House, separately Wednesday said that “the baby would get, during the pregnancy period through the placenta, antibodies against the virus” that last a few months after birth, he said. Fauci, speaking in an interview with Axios, also said mothers can transfer their Covid antibodies while breastfeeding, thereby extending their babies’ immunity.Children under 12 “would likely be able to get vaccinated by the time we reach the end of calendar year 2021, and at the latest into the first quarter of 2022,” he said.CDC Director Dr. Rochelle Walensky told lawmakers that “vaccines are coming for youth, they’re doing dose de-escalation studies now down to 9 years old, soon thereafter down to 6, then down to 3, then down to 6 months … hoping to have more by late fall and end of the year.”Rochelle Walensky, director of the U.S. Centers for Disease Control and Prevention (CDC), listens during a Senate Appropriations Subcommittee hearing in Washington, D.C., U.S., on Wednesday, May 19, 2021.Greg Nash | Bloomberg | Getty Images More

In this articleMCDMcDonald’s U.S President Chris Kempczinski speaks about fresh beef expansion at a McDonald’s event in Oak Brook, Illinois, United States March 5, 2018.Richa Naidu | ReutersMcDonald’s board will likely face tough questions from shareholders on Thursday at its annual meeting about how it handled the firing of former CEO Steve Easterbrook.Easterbrook was ousted in November 2019 for having a relationship with an employee in violation of company policies. McDonald’s fired him without cause, which allowed him to walk away with a severance package currently valued at as much as $56 million.In August, McDonald’s filed suit against Easterbrook to claw back that package, alleging that he lied about having additional relationships with employees. The lawsuit has opened McDonald’s up to questions and criticism of the board’s original investigation into Easterbrook, like why the third-party inquiry was wrapped up in a week and why investigators didn’t check the company’s servers for more evidence.In response, CtW Investment Group, which works with pension funds sponsored by affiliates of unions, and New York City Comptroller Scott Stringer have campaigned against reelecting the board chairman and chair of the board’s compensation committee. (Stringer, who is campaigning for New York City mayor, has been accused of sexual assault and harassment, which he has denied.)The shareholder campaign cites the two board members’ roles in firing Easterbrook without cause in 2019. And surprisingly, proxy advisory firm Glass Lewis has recommended voting against reelecting Enrique Hernandez and Richard Lenny, citing similar concerns. Rival firm Institutional Shareholder Services said both directors should keep their positions, however, and praised the board for taking legal action instead of sweeping Easterbrook’s misconduct under the rug.Institutional investor Neuberger Berman said Wednesday that it intends to oppose the reelection of Lenny. It did not say how it would vote on Hernandez. The firm holds a 0.33% stake in McDonald’s, according to FactSet. “As chair of the compensation committee, we believe Mr. Lenny failed to enforce the company policy violated by Easterbrook by not applying termination for cause treatment for all equity awards and has set a poor precedent for future matters,” Neuberger Berman said in a statement disclosing its vote.Hernandez has been on McDonald’s board since 1996 and was elected chairman in 2016. Lenny has been on the board since 2005 and chaired the compensation committee since May 2019, meaning that he played a key role in Easterbrook’s severance package.McDonald’s, of course, recommended in its proxy filings that shareholders reelect all of its board members. While it’s rare for shareholders to vote against the company’s own recommendations, it’s not completely unthinkable. Investors are increasingly pushing companies to diversify boards and taking directors to task on failures of corporate governance.For example, shareholders rejected Starbucks’ compensation plan for executives in March, although the resolution is nonbinding. Both Glass Lewis and Institutional Shareholder Services told shareholders to vote against it because the proxy advisors disagreed with Starbucks’ rationale for one-time cash bonuses given to former COO Roz Brewer and current CEO Kevin Johnson.Besides the shareholder campaign, McDonald’s is facing pushback elsewhere for the Easterbrook ouster. Teamsters Local 237 Additional Security Fund and two affiliates have sued the company and board members for how it handled the situation, alleging that they breached their fiduciary duty.The attention to Easterbrook’s and the board’s conduct comes at an awkward time for McDonald’s. Under the leadership of current CEO Chris Kempczinski, the company has been trying to rehabilitate its image and improve the perception of its culture. For example, McDonald’s said that it will require sexual harassment training at all of its global restaurants, starting in January 2022.Despite these woes, McDonald’s shares have risen 7% this year, giving it a market value of $177 billion. More