Raphael Stevens

In this articleARKQARKXSPCESpaceShipTwo “Unity” on the runway after an aborted spaceflight test on Dec. 12, 2020.Virgin GalacticVirgin Galactic shares fell in trading Wednesday as it was revealed Ark Invest’s space exploration ETF sold nearly all of its remaining stake in the space tourism company.Cathie Wood’s firm sold 293,962 shares of Virgin Galactic from its ARKX fund on Tuesday, a day that was marked by wild trading in the stock following the company’s first quarter results. Virgin Galactic shares plummeted 20% – below $15 a share – to begin trading on Tuesday, before slowly rallying throughout the day to finish just barely positive.Shares of Virgin Galactic fell 11.3% in trading Wednesday to close at $16.08. The firm declined CNBC’s request for comment on the Virgin Galactic trades.The stock has lost about half its value since ARKX began trading in late March, when the fund debuted with a stake of about 672,000 shares of Virgin Galactic – a position worth about $20 million at the time. Virgin Galactic’s stock then began falling after delays to its test program and commercial flights, as well as share sales by chairman Chamath Palihapitiya and then founder Richard Branson.Ark cut its ARKX holding of Virgin Galactic by nearly half on April 20, after the stock slipped below $23. Shares continued to fall earlier this month, after Jeff Bezos’ venture Blue Origin announced plans to launch the first crewed flight of its space tourism rocket on July 20 – a move UBS warned likely removes Virgin Galactic’s first-mover advantage.After Virgin Galactic reported first quarter results, putting in doubt the schedule, Ark cut ARKX’s position down to just 7,622 shares. It is now the smallest holding in the space ETF, with an 0.02% weight.Ark Invest also sold shares of Virgin Galactic from its ARKQ “autonomous technology and robotics” fund in recent weeks, cutting its position from over 2 million shares in late April to just 7,879 shares as of Wednesday. Like ARKX, Virgin Galactic is also now the smallest holding in the ARKQ fund.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

People take breakfast at Bill Smith’s Cafe, after Texas Governor Greg Abbott issued a rollback of coronavirus disease (COVID-19) restrictions in McKinney, Texas, March 10, 2021.Shelby Tauber | ReutersThe restaurant industry is poised for a roaring comeback this summer, but understaffed eateries could dampen growth.One potential solution for business owners: Hire more teenagers. That’s easier said than done.Andy Diamond, the president of the 12-location seafood chain Angry Crab Shack, said that he’s willing to hire teenagers. He just doesn’t think teens want the jobs he desperately needs to fill.The restaurant chain is facing a shortfall of workers for back-of-house positions such as dishwasher and cook, according to Diamond. It’s raised its hourly wage and is offering referral bonuses in the hopes of attracting serious applicants.”Most teenagers, if they’re applying, I don’t think they want to work in a kitchen,” Diamond said. “If they’re applying, they’re looking for 15 to 20 hours a week, and that’s more likely front of the house.”Cooks and dishwashers tend to be 21 to 35 years old, he said. The jobs that are usually filled by younger workers, such as bussers, runners and hosts, are fully staffed.The mismatch between what jobs teens are looking for and what positions need to be filled is just one reason for restaurants’ current troubles finding labor. The leisure and hospitality industry, which includes bars and restaurants, is still down 2.9 million workers from pre-pandemic levels. The April unemployment rate surprisingly rose to 6.1%, defying the expectations of economists who predicted a surge in hiring last month.Business owners have pointed fingers for the current labor crunch at the enhanced unemployment benefits, saying that would-be employees prefer to collect the checks instead of working low-wage jobs. The enhanced benefits don’t run out until September, although at least 11 states will end theirs early. Other considerations at the top of job seekers’ minds include child care and the risk of contracting Covid-19. The restaurant industry’s workforce skews female, according to data from the Bureau of Labor Statistics.”I certainly have heard the anecdotes of cases where workers are earning more on unemployment than at a job, but I think it’s incredibly difficult to parse out how much that is happening and if that is driving the bigger trend, because we have the public health question, the child care question,” said AnnElizabeth Konkel, an economist for the Indeed Hiring Lab.Most of those issues aren’t a concern for teenagers. Child care largely isn’t a problem. The Food and Drug Administration authorized use of the Pfizer vaccine for adolescents who are at least 12 years old, and Moderna is currently testing its own vaccine on youths. Teens may also need jobs to help support their family.Traditionally, the restaurant industry employs about a third of all working teens. In 2020, 1.63 million people between the ages of 16 and 19 worked at food and drinking places, according to BLS data. That’s down from 1.73 million teens a year earlier as the coronavirus pandemic led to soaring unemployment across industries, particularly in hospitality.However, teen labor force participation was declining even before the pandemic. Extracurricular activities such as sports, volunteering and college prep are taking time away from teens’ schedules, making them less likely to hold down a summer job. Internships — either paid or unpaid — took workers away from more traditional summer jobs such as lifeguarding or working at a restaurant.Every year, the Greater Ocean City, Maryland Chamber of Commerce teams up with other local business groups to hold a seasonal job fair geared toward high school students.”What we find is that there is still limited engagement in the number of those students participating in the seasonal workforce here,” said Lachelle Scarlato, executive director of the chamber of commerce.This summer, Ocean City is predicting a busier season than usual for its bars, restaurants and shops due to increased domestic travel. Without teens’ labor, the area faces a serious shortage of workers. Embassies have been lagging in processing J-1 visas, which typically account for 4,000 to 5,000 seasonal workers for Ocean City businesses. Only about 100 of the visas have been processed so far for the season, Scarlato said.For some teens, it’s not for lack of trying. Karen Coyne from Hagerstown, Maryland, said that her 15-year-old son is struggling to find a job, despite having the required work permit for a minor. He’s applied to several fast-food restaurants, but no luck. Coyne said they’ve gotten the impression that businesses don’t want to hire someone his age.Concerns about safety during the Covid-19 pandemic have introduced new reasons for teens to sit out of the workforce. Beyond health concerns, workers have also had to interact with belligerent customers who don’t want to follow the locality’s or business’s guidelines. In March, a Jack in the Box worker was stabbed by a customer whom he asked to wear a mask.Twenty-eight percent of respondents of Piper Sandler’s semi-annual survey of teens said that Covid-19 impacted their part-time job or ability to find work. The firm conducted the survey between Feb. 19 and March 24.However, internship postings on Indeed are down this year compared with both 2019 and 2020, and teenagers, like the rest of us, are antsy to leave their homes, according to Konkel.”In general, there are less internships this summer, so a college student or teenager may be on the fence and end up saying that they’re just going to work in a restaurant or retail store, a traditional summer job, especially if they’re looking for pay,” Konkel said.Some families have limited the scope of their teens’ job search because of the ongoing pandemic. Amy Gray is a mother of two teens who found summer jobs in Cleveland, where they live. Although both her 19-year-old son and 16-year-old daughter have been vaccinated, they limited their job search to positions that were outdoors or virtual.”As a family we aren’t eating in restaurants or going to other indoor places where people aren’t wearing masks,” Gray said. “Also, I work in a public service position and there’s no way I’d ask my kids to deal with what I’ve had to deal with customer-wise over the past nine months or so.” More

In this articleHTZGQA Hertz car rental office is seen the day after Hertz announced it was filing for bankruptcy due to a sudden decline in the company’s revenue caused by a dramatic decrease in travel during the Covid-19 pandemic in Kissimmee, Florida, on Saturday, May 23, 2020.SOPA Images | Getty ImagesShares of car rental company Hertz Global on Wednesday skyrocketed by more than 50% after it selected a $6 billion turnaround bid that provides a rare payout to shareholders for a company in Chapter 11 bankruptcy.Investment firms Knighthead Capital Management and Certares Management, among others, won the bid to take over Hertz in its bankruptcy reorganization, which the company hopes to exit by the end of June.The Wall Street Journal, which first reported the auction results, said the winning bid will pay current shareholders close to $8 a share, an unusual payout in any kind of corporate bankruptcy. Some of that would be paid in cash with warrants and reorganized equity also accounting for part of the value.Apollo Global Management and a group of existing shareholders will join Knighthead and Cetares in taking control of Hertz, which filed for bankruptcy last May.Under the proposal, which must be approved by the U.S. Bankruptcy Court, Hertz’s Chapter 11 plan will be funded through direct common stock investments from investors and others aggregating $2.78 billion, the issuance of $1.5 billion of new preferred stock to Apollo and a fully backstopped rights offering to the company’s existing shareholders to purchase about $1.64 billion of additional common stock. Shares of Hertz jumped by as much as 68% before retreating some throughout the day. Its stock was trading at $5.78 a share as of 2.30 p.m. Wednesday, up by about 58%. Its market cap is nearly $900 million.The rental car firm was among the largest companies to file for Chapter 11 during the coronavirus pandemic after demand evaporated during lockdowns last spring due to Covid-19. More than a year later, demand for rental cars is outpacing supplies as the country reopens and some Americans continue to rent vehicles over flying. More

Samuel Corum/Bloomberg via Getty ImagesThere’s still time to make health savings account contributions for 2020.Those with high-deductible health plans have until the extended tax-filing deadline, May 17, to make HSA contributions for 2020.Self-only plans allow deposits of up to $3,550, while those with family coverage may save as much as $7,100.This last-minute move may trim your tax bill while setting aside funds for future health care, financial experts say. More in Personal Finance:Here are the new health savings account contribution limits for 2022There’s one week left to contribute to 2020 IRAs ahead of May 17 tax deadlineHere are smart steps to take now to make tax filing easier for 2021HSA benefits”HSAs are one of the most tax-advantaged vehicles that we have,” said Kevin Mitchell, a certified financial planner and partner at TrustCore in Brentwood, Tennessee.There’s an “above-the-line” tax break for HSA contributions, a perk for filers who don’t itemize deductions, and these deposits may reduce adjusted gross income.Another benefit is the ability to invest and grow HSA balances tax-free. Account holders may use the money anytime, tax and penalty-free, for eligible medical expenses.HSAs are one of the most tax-advantaged vehicles that we have.Kevin MitchellPartner at TrustCoreThose with fewer medical bills now may even skip withdrawals to save for health care in retirement.  “It’s one of the few account types where you get a tax break basically on all sides,” said Eric Bronnenkant, a CFP and certified public accountant at Betterment, a digital investment advisor.With no “use-it-or-lose-it” rules, HSA balances may roll over every year, and it’s portable for those changing jobs, unlike flexible spending accounts.Qualify for other tax breaksBronnenkant said reducing adjusted gross income offers more than a lower tax bill.”It may help you qualify for other benefits,” he said.For example, the latest round of stimulus payments may decrease for single filers with an adjusted gross income of more than $75,000 and married couples over $150,000.  It may also impact the $10,200 unemployment tax break, available to those making under $150,000, he said.   Those close to the thresholds may use HSA or individual retirement account contributions to drop into the eligibility range.”It really helps people who are on the borderline,” he added.Speaking with a financial advisor or tax professional may offer guidance on the complete financial picture, however.Be proactive with HSA contributionsAs the tax season winds down, it may be time to weigh HSA contributions for 2021, with a cutoff of next year’s tax-filing deadline.”We always make sure to let clients know that if you’re in a position where you qualify, and you have the eligibility, that you should always maximize if cash flow permits,” said Mitchell. Those eager to max out their HSA in 2021 may contribute up to $3,600 for self-only plans and $7,200 for family insurance.For 2022, there’s a new HSA contribution increase to consider. Single filers may save up to $3,650 and families may set aside up to $7,300.With the ability to make HSA deposits until the tax deadline, Bronnenkant said it’s easy to save money for the wrong year.”By default, the provider assumes that it’s for the year the contribution is made,” he added.Account holders may avoid trouble by double-checking their contribution year. More

In this articleWENA Wendy’s food order is prepared at the Rebel Foods Ltd. cloud kitchen in Noida, India, on Friday, March 12, 2021.Bloomberg | Getty ImagesIts bet on breakfast is paying off as Wendy’s reported better-than-expected earnings Wednesday and raised its forecast for the year.Shares in the fast-food chain were recently down about 2%, as stocks in the broader market slumped. After its earnings were released, the stock had risen more than 5%.It now expects adjusted earnings of between 72 cents and 74 cents per share, compared with previous estimates of adjusted earnings between 67 cents and 69 cents per share.The company has spent $3.5 million on advertising to promote its breakfast items. It expects both its business abroad and its breakfast menu to see improving sales ahead.”We could not be more pleased with the momentum in our business that continued in the first quarter of 2021 as sales significantly exceeded our expectations and fueled our restaurant economic model, leading to outsized profits,” President and Chief Executive Todd Penegor said on the earnings call.In the first quarter, the company’s reported net income rose to $41.4 million, or 18 cents a share, up from $14.4 million, or 6 cents a share, a year ago.On an adjusted basis, Wendy’s earned 20 cents per share, topping average analyst estimates of 15 cents a share, published in a Refinitiv survey.Revenue rose to $460.2 million from $405 million a year ago. That also was higher than the $444 million analysts had predicted.The restaurant chain’s global same-store sales rose 13% from a year ago.Wendy’s said a recently launched chicken sandwich sold very well during the quarter.”The strength of the Classic Chicken, along with the success of the Jalapeno Popper, has allowed us to compete very well in the chicken sandwich category. In fact, our share of breaded chicken sandwiches within QSR grew in the month of March, despite significant competitive activity,” Penegor said.Both Yum Brands’ KFC and McDonald’s have also recently debuted chicken sandwiches. The category has been so heated that it is starting to encounter tightening supplies of chicken.Wendy’s repurchased $56 million worth of stock in the first quarter and increased its share repurchase authorization by $50 million to $150 million. More