Raphael Stevens

The company’s existing building on the left, with a rendering of the planned expansion on the right.York Space SystemsYork Space, which builds spacecraft for customers wanting to operate satellites in orbit, on Tuesday announced an expansion of its production facilities at the company’s headquarters in Denver, Colorado.”This ‘mega facility’ will really be true high-rate production for the demand that we’re seeing in both the commercial and government markets now,” York Space CEO Dirk Wallinger told CNBC, saying that it adds “a true robust production capability to help secure our supply chain and help us expand the contracts that we’re working on with existing customers.”York’s new facility will quadruple the company’s total footprint, adding around 100,000 square feet next door to its current headquarters. Wallinger said the company’s existing facility can already manufacture “up to 1,000 spacecraft a year” but the expansion, which is due to open 18 to 24 months, will “blow that out of the water as far as total production capacity goes.”Wallinger noted that York’s capabilities have steadily improved since its founding in 2015, from four spacecraft at a time, to now 20 simultaneously before the expansion.”We understand how to manufacture the products at scale … right now we’re at about three months [to build a spacecraft],” Wallinger said. “The new facility is going to reduce it to 30 days.”A ‘more traditional’ business growth pathUnlike many of the space companies founded in the past decade, Wallinger said York is not venture capital backed – with “some very strong traditional finance backers” behind the company, the names of which the CEO did not disclose.”We’re more traditional in our approach,” Wallinger said. “We’ve been very lucky in the ability that we’ve been able to see contracts and execute on them and grow the company.”York has won contract awards for the Pentagon’s Space Development Agency, the U.S. Army, and a number of private customers. Wallinger estimated that York’s current spacecraft orders are split 65% to 35% between government and commercial companies, the latter of which often request strict non-disclosure agreements.”We’re seeing a lot more of that with the Fortune 500 companies,” Wallinger said. “They are beginning to be involved in space, but they’re not talking about it.”The spacecraft are used for a variety of purposes, Wallinger said, from imaging the Earth to “cyber secure communications.” “Global enterprise companies” have increased demand for the latter service, according to the executive. That’s because companies understand communication systems vulnerabilities are “no longer acceptable,” so more firms are turning to in-house, space-based systems, he said.The smartphone of spacecraftThe S-CLASS platform, designed for missions for a wide variety of government and commercial customers.York Space SystemsYork’s core spacecraft, the S-CLASS, is about the size of a household oven. The spacecraft’s compact design, as well as the reduction in size of spacecraft over the past two decades – which has gone from school bus-sized spacecraft to some as small as a mailbox – is analogous to what happened to smartphones over the years.”Phones got smaller and smaller,” Wallinger said.But after years of spacecraft shrinking, customers are now pushing the design the other direction. York last month unveiled its LX-CLASS spacecraft platform, reusing 90% of the hardware and software of the S-CLASS while tripling its power and available payload volume.”Now people pay more for the extra large iPhone, right, because they want more capability. That basic trajectory we saw with phones is what we’re seeing with satellites as well,” Wallinger said.IPO a ‘possibility’The 16th Electron launch in November 2020, when the company recovered the rocket after splashdown for the first time.Rocket LabYork Space is “not quite” ready to go public, but Wallinger said an IPO is “a possibility.””That’s not necessarily a stake in the sand and where we’re all set to go, but it’s a possibility for us,” Wallinger said. “We’re really focused on execution.”In the broader space market, Wallinger noted that more rocket builders are trying “to move into spacecraft” building as well, such as Rocket Lab or Astra. York isn’t worried about the competition, as Wallinger said, “our customers don’t want to be tied to one rocket,” as “if you have a problem with one rocket then you’re not compatible” to launch on another one.Additionally, while there are “a lot” of rockets in development, Wallinger thinks the supply of U.S.-built orbital-class rockets remains limited. That sector is currently led by SpaceX, United Launch Alliance and Rocket Lab, with Virgin Orbit recently joining after its first successful orbital launch.”We’re hearing a ton of demand, [so] I think it’s important that we still continue to invest in launch vehicle infrastructure and capability. We don’t want to be as reliant on foreign-owned companies in order to put government assets into space,” Wallinger said. “If York can manufacture a lot of satellites, but we can’t get them to orbit, that’s going to be a challenge.”Become a smarter investor with CNBC Pro.Get stock picks, analyst calls, exclusive interviews and access to CNBC TV. Sign up to start a free trial today. More

In this articleMJeff Gennette, CEO of Macy’s.Getty ImagesMacy’s said Tuesday that the huge sales gains it posted in the first quarter aren’t a fluke.”We don’t see this as a short-term pop,” Chief Executive Jeff Gennette said during an earnings conference call. “There are pent-up demand opportunities … that give us confidence for accelerated profitable growth in 2021 and beyond.”Macy’s sales jumped nearly 33% in the latest quarter, helping it to turn a surprise profit and prompting it to raise its forecast for the year.The company is lapping a period when its department stores were forced shut due to lockdowns that were put in place to help curb the spread of Covid-19. Sales tumbled a year ago, as shoppers put spending on apparel, handbags and makeup on pause.Many of those categories are now coming back strong, Gennette said.”As the weather warms up, and vaccines are more readily available, customers are feeling increasingly confident to get dressed up and venture outside,” Gennette said. “They’re also starting to attend events again.”Sales of luggage have climbed, Gennette said, as people get ready to travel again. Proms and weddings are back on again, and sales of dresses are rising week by week. At Bloomingdale’s, sales of dressy sandals are up year over year. And on the men’s side, demand for tailored clothing is spiking, the company said.But Gennette also explained that demand in many of the categories that were fueled by the pandemic hasn’t slowed down, either. He cited home goods and pajamas as two examples of product categories that continue to grow.Macy’s shares were up about 3% in premarket trading. More

In this articleWMTPeople talk outside a Wal-Mart Pickup-Grocery store in Bentonville, Arkansas.Rick Wilking | ReutersWalmart on Tuesday reported first-quarter earnings that surged past Wall Street’s estimates as the company reported strong grocery sales and e-commerce growth and raised its outlook for the year.Shares were up more than 3% in premarket trading.The big-box retailer said more shoppers have headed to its stores and website to spend stimulus checks and to get ready to socialize again as Covid cases decline and vaccination rates rise. E-commerce sales in the U.S. rose by 37% even as consumers returned to more normal activities. Walmart Chief Financial Officer Brett Biggs said in an interview that the company is seeing “pent-up demand” and expects that to continue. He said customers are still buying items that were popular during the pandemic, such as bicycles and printers, but have also begun to purchase things like teeth whitener as they take off their masks.”You can tell people are starting to get back out,” he said.The company raised its outlook for the fiscal year. It expects earnings per share and Walmart U.S.’s operating income to increase in the high single-digits. It reiterated its guidance that Walmart U.S. and Sam’s Club same-store sales will grow in the low single-digits, excluding fuel and tobacco.”Stimulus helped in Q1, and because of that, we increased profit and revenue guidance,” Biggs said. He said the company also boosted its outlook because of what it has seen in the second quarter.Here’s what the company reported for the fiscal first quarter ended April 30, compared with Refinitiv consensus estimates:Earnings per share: $1.69 adjusted vs. $1.21 expectedRevenue: $138.31 billion vs. $131.97 billion expectedIn the quarter, Walmart reported net income rose to $2.73 billion, or 97 cents per share, from $3.99 billion, or $1.40 per share, a year earlier. Excluding items, the company earned $1.69 per share. Analysts were expecting Walmart would earn $1.21 per share, according to Refinitiv.Total revenue grew by nearly 3% to $138.31 billion from $134.62 billion a year earlier, exceeding Wall Street’s expectations of $131.97 billion.Walmart’s same-store sales in the U.S. grew by 6%, higher than the 0.9% increase expected by analysts surveyed by StreetAccount. The company said those sales got a lift from grocery sales, as it gained market share. Transactions declined by 3.2%, but average ticket growth increased by 9.5%.Same-store sales for Walmart subsidiary Sam’s Club jumped by 7.2% excluding fuel — more than the 1.2% growth expected by analysts. The company said membership at the warehouse club also reached an all-time high.Walmart International’s net sales were $27.3 billion, a drop of 8.3% year over year, partially due to the company divesting parts of its global business. Its e-commerce sales increased by 49% in that segment, however. The company recently sold Asda, a British supermarket chain, and the majority stake of Seiyu, a Japanese supermarket chain.Read the company’s press release here. More

A patient and paramedics outside ambulances at the Royal London Hospital in London, during England’s third national lockdown to curb the spread of coronavirus. Picture date: Thursday January 21, 2021.Yui Mok – PA Images | PA Images | Getty ImagesLONDON — The coronavirus variant that first emerged in India could become the dominant strain of the virus in the U.K. in a matter of days, scientists have warned.The U.K. is detecting a rapid spread of the Covid variant “B.1.617” that first emerged in India last October and is seen as responsible for a wave of infections that has engulfed the south Asian nation in recent months.B.1.617 has three sub-lineages, each with slightly different mutations, the World Health Organization has said. The B.1.617 variant was dubbed a “variant of concern” by the WHO last week and on May 7, the U.K. dubbed the sub-lineage B.1.617.2 a variant of concern. Since then, the U.K. has seen cases caused by the variant almost double.On Monday, British Health Secretary Matt Hancock told British lawmakers that there were 2,323 cases of the variant known as B.1.617.2 now confirmed in the U.K., up from 1,313 last Thursday. He said 483 of those cases had been detected in coronavirus outbreaks in the northern English towns of Bolton and Blackburn where, he said, it had become the dominant strain with cases doubling there in the last week and “rising in all age groups” — although hospitalizations were stable. There are now 86 local authorities with five or more confirmed cases, Hancock added.The U.K. has introduced “surge vaccinations” in the most badly affected areas in a bid to protect as many people as possible from the virus and variant, which early evidence suggests is more transmissible.Early data shows that the current Covid vaccines in use are still effective against the new variant, one government official said on Monday, although there is now a race to vaccinate younger age groups, and anyone who has previously not accepted the vaccine.There are already concerns in government that the U.K.’s target date for ending all restrictions on social contact, June 21, could have to be reconsidered given the spread of the new variant.Experts are sounding the alarm that it’s likely that the variant is already entrenched. Paul Hunter, a professor in medicine at the University of East Anglia, told the Guardian newspaper on Monday that the India variant could overtake a more transmissible Covid variant (known as B.1.1.7) that emerged in the U.K. last fall and which became a dominant strain in the country and other parts of the world.”There is no evidence that the recent rapid rise in cases of the B.1.617.2 variant shows any signs in slowing,” he told the newspaper. “This variant will overtake (the Kent variant) and become the dominant variant in the U.K. in the next few days, if it hasn’t already done so.”Lawrence Young, a virologist and professor of molecular oncology at the University of Warwick, told CNBC on Tuesday that it looked like vaccines were preventing infection with the India variant, but that it would now be hard to stop the spread.”It’s very hard to contain these more transmissible variants once they’re out there in the world,” he told CNBC’s “Street Signs Europe.” “Obviously what we have in the U.K. at the moment is a race between the virus and vaccinations.”How serious is it?That the variant poses potential problems for the U.K., a country with a high Covid vaccination rate (almost 70% of the adult population has had at least one dose of a vaccine and almost 40% have had two doses), does not bode well for other countries further behind in their vaccination programs, particularly in Europe.The WHO has said that the variant from India has been detected across European countries. As of May 11, the B.1.617 variant had been detected in 44 countries in all six WHO regions, the organization said in its last weekly update.Commenting in the British Medical Journal on Monday, one group of experts noted that “there are many things we know and many things we don’t know about the B.1.617.2 variant” but that “we know enough to say that this new variant could be extremely serious.””We know that it is spreading fast (roughly doubling each week in the UK and nearly tripling last week from 520 to 1,313 cases), that it is becoming established in a number of areas across the country,” wrote Dr. Stephen Reicher from the University of St Andrews and Dr. Susan Michie and Dr. Christina Pagel from University College London who are experts in advisory groups (SAGE and Independent SAGE) which provide scientific advice to the government.”Compared to the dominant B.1.1.7 variant, we know that B.1.617.2 is very likely to be more transmissible and that it might be better able to transmit between people who are fully vaccinated,” they added.”We don’t yet know how much of the faster transmission is down to characteristics of the variant itself as opposed to the characteristics of those who are infected and … we don’t yet know whether and to what extent the new variant undermines the ability of vaccines to protect us against infection, hospitalisation, and death or to stop us transmitting infection to others,” they added.They noted that SAGE’s “worst case” scenario modeling suggests that if B.1.617.2 were 40-50% more transmissible than the B.1.1.7 variant it could cause an increase in hospitalizations worse than January 2021 “and if it also escapes the vaccines more, the level could be considerably greater.”Currently, however, they warned that “we don’t know enough to be sure exactly how serious it would be if it became the dominant variant in the U.K.” More

In this articleHDCustomers wearing protective masks wait to check out at a Home Depot store in Pleasanton, California, U.S., on Monday, Feb. 22, 2021.David Paul Morris | Bloomberg | Getty ImagesHome Depot on Tuesday crushed Wall Street’s earnings estimates as consumers’ splurging on their homes lingers more than a year into the coronavirus pandemic.Shares of Home Depot rose more than 2% in premarket trading. The stock has risen more than 20% this year, giving it a market value of $344 billion as of Monday’s close.Here’s what the company reported for the three months ended May 2 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:Earnings per share: $3.86 vs. $3.08 expectedRevenue: $37.5 billion vs. $34.96 billion expectedThe retailer reported fiscal first-quarter net income of $4.15 billion, or $3.86 per share, up from $2.25 billion, or $2.08 per share, a year earlier. Analysts surveyed by Refinitiv were expecting earnings per share of $3.08.Net sales rose 32.7% to $37.5 billion, beating expectations of $34.96 billion. Global same-store sales surged 31% for the quarter.This is the first quarter that the retailer is facing year-over-year comparisons to its business during lockdowns. A year ago, its first-quarter same-store sales grew 6.4%. Home Depot was classified as an essential retailer, accelerating sales for the company’s do-it-yourself supplies as consumers tackled new projects while stuck at home.A booming housing market has also helped fuel growth, although soaring lumber prices and higher interest rates have dampened sales of newly built homes in recent months.For the company’s first quarter this year, it reported 447.2 million customer transactions, up 19.3% from a year earlier. Consumers were also spending more during their visits. Average ticket rose 10.3% to $82.37.Home Depot hasn’t released an outlook for fiscal 2021. Last quarter, it cited the uncertainty caused by the pandemic.”Fiscal 2021 is off to a strong start as we continue to build on the momentum from our strategic investments and effectively manage the unprecedented demand for home improvement projects,” CEO Craig Menear said in a statement. More

A health worker prepares a dose of the Pfizer-BioNTech Covid-19 vaccine at the Senja-Cashew Community Centre Vaccination Centre in Singapore on March 8, 2021.Wei Leng Tay | Bloomberg | Getty ImagesSINGAPORE — Singapore has approved the use of the Pfizer-BioNTech coronavirus vaccine for children between the ages of 12 and 15, authorities announced on Wednesday.Previously, only people 16 and above were allowed to receive the shot. The vaccine developed by Moderna is only given to individuals who are 18 years and above.Singapore’s Health Sciences Authority (HSA) authorized the use of the Pfizer-BioNTech vaccine for children between 12 and 15 under the Pandemic Special Access Route for emergency therapeutic products.The country’s expert committee on Covid vaccines assessed the safety, efficacy and tolerability of the vaccine before endorsing the interim authorization by HSA.”The data showed that the Pfizer-BioNTech COVID-19 vaccine demonstrated high efficacy consistent with that observed in the adult population,” the ministry of health said in a press release.”Its safety profile is also consistent with the known safety profile in the adult population and the standards set for other registered vaccines used in the immunization against other diseases,” it added.Vaccinations for those aged 40 to 44Singapore also announced that individuals between the ages of 40 to 44 would be invited to register for their vaccinations from Wednesday this week.The immunization program will continue to be rolled out in five-year age bands, progressively moving to younger groups, the press release said.”Our supply of vaccines has been steadily coming in, but remains limited given high global demand,” it said.Still, the health ministry said it’s on track to complete the vaccination program by the end of the year “if our supplies arrive as scheduled.”As of May 17, Singapore has administered more than 3.4 million doses of the vaccine. At least 1.4 million individuals have received their second dose.This is breaking news. Please check back for updates. More