Raphael Stevens

In this articleMPeople count money at Macy’s Herald Square store in New York.Andrew Kelly | ReutersWhen Americans began scouring the web last March for office supplies and toys to entertain kids at home, Macy’s wasn’t nearly as prepared as it wanted to be.The department store chain said Tuesday it has begun investing in new categories for the business — including toys, health and wellness, pets and home decor — in a bid to attract fresh-faced customers but also to keep its existing customers coming back for more.”Customers have signaled for us where we’ve failed [in] searches,” Chief Executive Jeff Gennette said during an earnings conference call.He mentioned hair products, nail accessories and gourmet food items as three other category opportunities that Macy’s has not typically gone after — but it will soon.The push could make Macy’s a closer competitor to big-box businesses such as Target and Walmart, which are known to offer shoppers a little bit of everything.”If you look at our website today … you start to see some of the new brands that we’re adding,” Gennette said.Macy’s biggest hope with this strategy is that it will be able to attract more customers who are under 40 years old. Gennette said the company’s top target is the “millennial mom.”During its fiscal first quarter, Macy’s said it saw 4.6 million new customers, a 23% increase from the same period in 2019. And 47% of those people made their first purchases online.Macy’s shares closed Tuesday down less than 1%. More

In this articleTDISCACNBC’s Jim Cramer on Tuesday stepped up his criticism of past and present AT&T leaders for their handling of WarnerMedia, the movie and television content and streaming unit the telecom giant now plans to break off and combine with Discovery.In particular, Cramer took issue with AT&T’s plans to reduce its dividend after the completion of the merger, which basically unwinds the telecom giant’s $85 billion acquisition of Time Warner in 2018.AT&T shareholders have a right to be upset, Cramer said on “Squawk Box,” as the stock fell more than 6% on Tuesday, extending its 2.7% decline from Monday’s session.”The way they did it was completely suboptimal, and the people who are selling it are the long-term holders who feel very betrayed,” Cramer said, while blasting AT&T board member Geoffrey Yang, who appeared on “Squawk Box” earlier Tuesday and defended the planned dividend cut.”I’m not a trader,” Yang said. “Just looking at what is in the best interest of long-term shareholders for both Discovery and for AT&T, I think this deal makes a lot of strategic and financial sense. It was clearly a tough tape yesterday, but like I said, I’m not a trader and I just look at kind of long term.””I think the resizing of the dividend makes a lot of sense and still leaves it within the top 95th percentile of all companies with dividends and gives us more flexibility for allocation of capital to grow the business in its core strengths in broadband and business and wireless,” Yang added.Cramer was triggered by Yang’s “not a trader” comment. “This is owned by grandmothers. What an insult to their shareholders,” the “Mad Money” host said. “It’s just an insult. I’m sure they’ll say, ‘Oh, Cramer, what a joke.’ But, I mean, they’re the joke.” He added, “I know they have to say stuff, it’s corporate America. I expected better.””What an ill-advised strategy to come on our network and say that after pretty much having a CEO not that long ago … stand by the dividend,” Cramer said, referring to remarks from AT&T CEO John Stankey late last month and in March.On April 22, when asked about the priority being placed on AT&T’s dividend, Stankey told CNBC: “My first priority is to get the stock price up so the dividend yield is not 6.9%. That’s what I would like to do to fix the problem. That’s what this management team is focused on. And if we keep executing in the consistent fashion we are now, that problem takes care of itself with math.” In addition to those comments, Stankey also defended AT&T’s dividend strategy in a CNBC interview March 12.In fact, Cramer said, AT&T should be striking a more conciliatory tone around the entire WarnerMedia ordeal. On Monday evening, he called AT&T’s purchase of Time Warner — which endured a protracted battle with the Justice Department under then-President Donald Trump, “one of the dumbest mergers in recent history.” AT&T shares have fallen more than 20% in the past five years.”I mean, why not just say, ‘We screwed up’? Why not just say, ‘We paid too much’? Why not just say, ‘We said that the dividend was safe, and we were wrong’?” Cramer said Tuesday morning.AT&T also could say, “We have to make it so the company is competitive, and the way to do that is to offload something that didn’t really fit even though we said it fit and … the Randall logic wasn’t logic at all,” Cramer added, referring to former CEO Randall Stephenson, who was in charge of AT&T in 2016, when the Time Warner deal was first announced.Neither AT&T nor Yang was immediately available to respond to CNBC’s request for comment concerning Cramer’s remarks.But in an interview Monday on CNBC, Stankey defended AT&T’s dividend approach.”It’s not to be unexpected that when we shift out as much of the cash flow as we do with the media company transaction, what we’ve done with the DirecTV transaction, that we’ve resized the dividend as a result of that,” Stankey said.”But more importantly, using that cash flow to something that we know we can generate really attractive returns, far in excess of the 5%-ish yield that maybe the dividend returns, is the right thing to do for shareholders,” he said. More

Erica Aparitio receives a Johnson & Johnson COVID-19 vaccine from Yelany Lima, a Registered Nurse, at the UHealth’s pediatric mobile clinic on May 17, 2021 in Miami, Florida.Joe Raedle | Getty ImagesCovid case counts are declining by 5% or more in nearly every U.S. state, a CNBC analysis of data compiled by Johns Hopkins University shows, as nationwide levels of infections and deaths continue their downward trends.An average of about 1.8 million vaccinations are being done in the U.S. each day over the past week, according to federal data, and 47.5% of the population has received at least one vaccine dose.U.S. Covid casesThe country is reporting an average of about 32,000 daily infections over the past seven days, down significantly from mid-April levels of more than 71,000 daily cases. That seven-day average of 32,000 is the lowest since late June.Zoom In IconArrows pointing outwardsAverage daily case counts have fallen by 5% or more in 42 states over the past week, a CNBC analysis of Johns Hopkins data shows. President Joe Biden warned Monday, however, that case numbers could rise once again in U.S. states with low Covid-19 vaccination rates.U.S. Covid deathsThe latest seven-day average of daily U.S. Covid deaths is 587, down 8% from one week ago, according to Johns Hopkins data.Zoom In IconArrows pointing outwardsMore than 586,000 total Covid deaths have been reported in the U.S. since the start of the pandemic.U.S. vaccine shots administeredThe U.S. is averaging about 1.8 million vaccinations per day over the past week, according to the Centers for Disease Control and Prevention.Zoom In IconArrows pointing outwardsThe pace of daily shots has been on a downward trajectory since its peak level in mid-April as many of those most eager and able to get vaccinated have done so.U.S. share of the population vaccinatedMore than 47% of Americans are at least partially vaccinated, CDC data shows, and about 37% are fully vaccinated.Zoom In IconArrows pointing outwardsAmong those aged 18 and older, nearly 60% have received at least one shot. Biden recently set a goal of getting 70% of U.S. adults to receive at least one dose by July 4.CNBC Health & Science Read CNBC’s latest coverage of the Covid pandemic:From employer mandates to TV ads: What full FDA approval could mean for Covid vaccines Singapore approves Covid vaccine for children aged 12 to 15 as cases surgeIndia Covid variant set to be dominant in UK ‘in a matter of days,’ posing unknown dangersIndia’s Covid crisis exposes deep-rooted problems in public health after years of neglectBiden warns states with low Covid vaccination rates may see cases rise again More

In this articleWMTA customer browses products at a Walmart store in Burbank, CaliforniaPatrick T. Fallon | Bloomberg | Getty ImagesInflation is driving up prices of items from soda to diapers, but Walmart said it is putting more of its merchandise on sale.Walmart U.S. CEO John Furner said on an earnings call Tuesday that the retailer had about 30% more discounts in stores in the first quarter than the same period a year ago. He said it plans to continue to dangle deals and widen price gaps to stand out from competitors.”Over the last 12 months, we saw our price gaps improve versus the market, and our merchants are working hard to ensure that that will continue,” he said.The retail giant has cultivated a reputation for its slogan and focus on “Everyday Low Prices.” In its store aisle, it promotes sales — called rollbacks — on signs with big numbers intended to catch the eye of shoppers and tout how much they could save.During the early months of the pandemic, however, Walmart and other grocers largely pulled promotions as they struggled to keep inventory on shelves. Instead of pricing stock to encourage customers to buy multiples, many retailers restricted purchases of popular items, from toilet paper to ground beef. Some retailers also slashed their orders for skipped-over items such as apparel, which led to less leftover merchandise that wound up on the clearance rack.Lately, retailers have faced a new challenge: Price hikes by consumer packaged goods companies such as Coca-Cola and Procter & Gamble as commodity costs rise.Walmart, however, said it’s holding the line. For the retailer, frequent sales indicate more of a return to normalcy. It is doubling down on one of its key competitive advantages as more Americans buy new clothes, teeth-whitening kits and other merchandise to go back into the world again.The retailer beat Wall Street’s expectations for first-quarter earnings. Walmart CEO Doug McMillon said Americans “want to get out and shop” as they prepare to socialize and take vacations.Furner said undercutting rivals on price is especially important as more shoppers feel comfortable going to different stores to compare and get the best bargain. During the peak of the health crisis, consumers tended to limit their shopping trips, buy numerous items at a single store and go to one that’s nearby.That may change as people worry less about their safety and more about their budget while juggling a growing list of expenses again, such as commuting to the office, restaurant meals and hotel stays. “Value could be more important than convenience” this year, he said.He said the retailer’s size and mix of merchandise, from apparel to consumer electronics, gives it an advantage. He said it can offset price cuts by selling higher-margin items, even within the same category. For instance, he said, meat, produce and bakery tend to be more profitable than some other groceries. Selling more of those items is “enabling us to maintain price positions that we have been running,” he said.Plus, he said, Walmart’s new revenue streams, such as its growing advertising business and third-party marketplace, give it more flexibility to reduce prices without hurting its profits.McMillon on the earnings call Tuesday recounted a memorable lesson about the power of low prices early in his career. When he worked as an assistant buyer in food in the 1990s, he said, his boss made a surprising request.”My supervisor walked into the room with a few of us and said, ‘We’re short on our profit number for the month. I need you all to find price reductions that you can put in place quickly. Bring them to me by the end of the day.’ And I thought I misheard him,” he said. “How do you lower prices and increase profit?”Later, he said, he came to understand “that’s the beauty of retail and mix.””We’ve got all these levers to be able to find places to go upstream [and] do things differently than other people are doing it,” he said. More

In this articleFPresident Joe Biden speaks during a tour of the Ford Rouge Electric Vehicle Center, in Dearborn, Michigan on May 18, 2021.Nicholas Kamm | AFP | Getty ImagesDETROIT — President Joe Biden is expected to use a visit Tuesday to a Ford Motor plant in Michigan to tout his agenda for American-made electric vehicles and his $2 trillion infrastructure package that includes $174 billion to spur the development and adoption of electric vehicles.Biden will tour Ford’s new Rouge Electric Vehicle Center near the company’s headquarters in Dearborn, Michigan, where the electric F-150 Lightning pickup will be produced. He’s expected to see the vehicle and receive a technical briefing of the truck ahead of its public unveiling Wednesday.Ford’s all-electric F-150 will be called Lightning. The all-new F-150 Lightning will be revealed May 19 at Ford World Headquarters in Dearborn and livestreamed.FordThe F-150 Lightning, which Ford is touting as an inflection point for the company, is expected to go on sale by mid-2022. An EV version of the best-selling truck in the U.S. could help Biden push his EV agenda, which is expected to include consumer incentives to spur adoption of the vehicles.”The fact that he’s coming shows the commitment and the interest our government has in the electrification of the auto industry,” Ford Chairman Bill Ford said last week at the automaker’s annual shareholders meeting. “The fact that we’re taking America’s favorite vehicle and we’re electrifying it really is a huge exclamation point. That hasn’t been lost on anyone, including the president of the United States.”Reuters, citing an unpublished White House fact sheet, reported Tuesday that Biden is expected to disclose more details of his plans to spur EV adoption during the visit. He’s expected to rule out consumer incentives for high-priced electric luxury models while pushing for incentives for mainstream vehicles as well as manufacturers that use good labor practices.Poster childThe F-150 Lightning could be the poster child for such plans. It will be union-made, unlike the Tesla Cybertruck, and it’s expected to appeal more to mainstream Americans than General Motors’ upcoming $110,000 GMC Hummer EV pickup. GM, however, has plans to produce a more mainstream electric version of its Chevrolet Silverado pickup.Pickups are viewed as an important way to increase consumer adoption of EVs because they’re the best-selling vehicles in the country. They’re also extremely important to fleet and commercial customers, expected to be among the largest purchasers of EVs.”The F-150 is 1 out of every 10 vehicles made in the U.S. If we’re going to move to an electric future, then it’s going to have to involve vehicles like this,” said Kristin Dziczek, senior vice president of research at the Center for Automotive Research.Biden has expressed interest in replacing the government’s massive fleet of cars and trucks with EVs assembled in the U.S. In 2019, the U.S. government had 645,000 vehicles that were driven 4.5 billion miles and consumed 375 million gallons of gasoline and diesel fuel, according to the General Services Administration.Importance of F-SeriesFord’s F-Series pickups have been the best-selling truck in the U.S. since the mid-1970s.The wildly popular truck has reigned supreme for 44 years, including 39 years as the best-selling vehicle overall in the U.S. The significance of the truck to Ford can’t be overstated. F-Series, which includes the F-150 and large truck siblings, is the automaker’s profit engine.It’s why investors and politicians are closely watching Ford’s unveiling this week of the F-150 Lightning.”It’s their most important product,” said Stephanie Brinley, principal automotive analyst at IHS Markit. “This is a space that they’ve done incredibly well for more than 40 years, and they’re not going to cede leadership on any element of it willingly.”At $42 billion in revenue a year, F-Series is among the largest consumer products in the nation, according to a Ford-commissioned analysis last year by Boston Consulting Group. It ranks behind Apple’s iPhone but ahead of Android OS devices, Disney and all major sporting leagues, according to the study.It also found F-Series supports about 500,000 U.S. jobs through production and sales, representing 13 to 14 jobs for every direct Ford employee working on the truck. It also contributes about $49 billion to the U.S. gross domestic product, according to the study. More

A healthcare worker from the El Paso Fire Department administers the Moderna vaccine against the coronavirus disease (COVID-19) at a vaccination centre near the Santa Fe International Bridge, in El Paso, Texas, May 7, 2021.Jose Luis Gonzalez | ReutersPeople in rural areas are receiving the Covid-19 vaccines at a lower rate than those in urban areas, potentially hindering the nation’s progress toward ending the pandemic, according to a new study published Tuesday by the Centers for Disease Control and Prevention.The CDC analyzed county-level vaccine administration data among American adults who received their first dose of either the Pfizer-BioNTech or Moderna Covid-19 vaccine or a single dose of the Johnson & Johnson Covid-19 vaccine. It looked at data from 49 states and the District of Columbia through April 10.The agency found a lower percentage of residents in rural counties who received at least one shot than in urban counties, at 38.9% and 45.7%, respectively. The CDC also found people in rural areas who did receive a vaccine often had to travel farther to get it than people in urban areas.”Vaccine hesitancy in rural areas is a major barrier that public health practitioners, health care providers, and local partners need to address to achieve vaccination equity,” the CDC wrote in the report.”As availability of COVID-19 vaccines expands, public health practitioners should continue collaborating with health care providers, pharmacies, employers, faith leaders, and other community partners to identify and address barriers to COVID-19 vaccination in rural areas,” the agency added.The new data comes as more studies find rural residents may be more hesitant to get a vaccine. A Kaiser Family Foundation report published in April found 3-in-10 rural residents said they will either “definitely not” get vaccinated or will do so only if required.CDC Director Dr. Rochelle Walensky addressed the study before it was released Tuesday, saying the Biden administration was committed to reaching out to communities “in every corner of the United States.”The U.S. is working to “make sure vaccine access is equitable regardless of whether you live in rural or urban areas,” she said during a White House Covid-19 briefing. “Public health staff are working nationwide to provide trusted information via trusted messengers.”Walensky said over the past weekend CDC staff attended the Talladega Superspeedway in Alabama where U.S. health officials provided Covid testing and vaccinations.”We are truly making strides across the country to ensure people have access to vaccines,” she said.The study Tuesday did not calculate coverage by race and ethnicity, the CDC said, because information on that was missing for 40% of the data. More