Raphael Stevens

Ford Motor Co. displays a new 2021 Ford F-150 pickup truck at the Rouge Complex in Dearborn, Michigan, September 17, 2020.Rebecca Cook | ReutersFord Motor on Thursday said the global shortage of semiconductor chips and winter storms impacting the availability of other parts in the U.S. are causing it to cancel shifts at two plants and build F-150 pickups and Edge SUVs without certain parts.The automaker plans to complete building the F-150 and Edge models in “a number of weeks” when the parts, including some electronic components with semiconductors, are available. The number of vehicles impacted is expected to be “in the thousands,” according to a Ford spokeswoman. She declined to be more specific due to the volatility of the chip shortage.The production cancellations include three shifts through Friday at a plant in Kentucky that produces Ford Escape and Lincoln Corsair crossovers. Ford also confirmed downtime earlier this month as well as a day next week at a plant in Germany that produces the Ford Fiesta car, which is no longer sold in the U.S.Ford’s actions are the latest as the auto industry attempts to deal with the global chip shortage. Consulting firm AlixPartners estimates the chip shortage to cut $60.6 billion in revenue from the global automotive industry this year.Ford has said the chip shortage could lower its earnings by $1 billion to $2.5 billion this year.Ford’s largest crosstown rival, General Motors, previously confirmed it also is partially building some pickups in an effort to keep factories running amid the chip shortage. GM expects the chip shortage to cut $1.5 billion to $2.5 billion from its free cash flow in 2021.  More

CNBC’s Jim Cramer said Thursday that it’s a mistake to dump stocks in reaction to the Federal Reserve’s decision to leave the interest rate unchanged.He defended Fed Chairman Jerome Powell, who the day prior maintained the central bank’s goal to keep short-term borrowing rates low to support the U.S. economic recovery, even if inflation picks up in the near term.”Higher rates are bad for the economy. Powell doesn’t want us to take that hit if we don’t have to,” the “Mad Money” host said. “He doesn’t want his legacy to be botching the recovery … [not after he] acted so aggressively last year to keep the economy from crashing.”The Fed slashed rates last year in response to the coronavirus pandemic. Now many market watchers are trying to anticipate the Fed’s next move as the economy gains traction. Mandates put in place to slow the spread of Covid-19 upended the economy and threw the country’s unemployment rate into double-digit range. The jobless rate has since fallen to 6.2% as of February, and Powell said the Fed would prioritize giving the labor market room to recover.”I think Jay Powell’s right to focus more on full employment than low inflation … I bet he’ll be right about the transient nature of the commodity price increases,” Cramer said.”Wall Street freaked out last year when Powell cut rates aggressively, and they’re freaking out again now that he’s decided to keep rates” low, he added.While a low-interest rate environment is good for stocks, not all stocks are created equal, Cramer said.Industrial businesses are winners when rates are low, while growth names — particularly those in tech that trade on future earnings expectations — are getting hit because those later profits are not as attractive if inflation eats into their value, he said.The Fed now projects gross domestic product to improve by 6.5% this year, up from a 4.2% projection it made in December. As the U.S. economy reopens and more consumers venture outside of the home more, cyclical companies, such as travel, will stand to benefit greatly, Cramer said.”The Fed’s basically saying, ‘Party on, industrials,’ which causes the hedge funds to buy them hand over fist,” the host said.”Problem is, if they want to buy the banks or the smokestack stocks … they need to sell something else,” he said, such as “the high-growth tech stocks that they always dump, and that’s called the hedge fund playbook.”Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer’s world? Hit him up! Mad Money Twitter – Jim Cramer Twitter – Facebook – InstagramQuestions, comments, suggestions for the “Mad Money” website? [email protected] More

Shares of electric vehicle start-up Lordstown Motors closed down 13.8% Thursday after the company confirmed the U.S. Securities and Exchange Commission has requested information regarding claims by a short seller that it misled investors.Hindenburg Research accused Lordstown in a report last week of using “fake” orders to raise capital for its first product, an all-electric pickup truck called the Endurance. The short seller claimed the pickup was years away from production, however Lordstown maintains it’s on track to start producing the vehicle in September.Morgan Stanley in an investor note Thursday afternoon also cut its price target for Lordstown from $18 a share to $12. Analyst Adam Jonas cited increased guidance on spending as a reason for the reduction. He reiterated the firm’s underweight rating on the stock.Lordstown CEO Steve Burns declined to comment on the SEC inquiry Thursday morning on CNBC. He told investors during the company’s first earnings call as a public company Wednesday that it was “cooperating” with federal officials.Burns on Thursday said the company’s highly touted preorders of more than 100,000 pickups — a main target of the Hindenburg report — were simply meant to gauge customer interest, not to confirm future sales. The company previously categorized the preorders as “non-binding production reservations” as well, but Burns also has referred to them as “very serious orders.””We’ve always been very clear, right? These are just what they’re intended to be. These are non-binding, letters of intent. They’re called preorders out in the real world,” he said Thursday on CNBC’s “Squawk Box.” He later added, “I don’t think anyone thought that we had actual orders, right? That’s just not the nature of this business.”Shares of Lordstown have tumbled by about 27% since Hindenburg released the report Friday. The company’s market cap is $2.2 billion.The company on Wednesday also increased its guidance on capital and operational expenses for this year, largely citing decisions to accelerate the development of its second product (a van) and do more in-house production.Lordstown went public through a special purpose acquisition company, or SPAC, in October. It is among a growing group of electric vehicle start-ups going public through deals with SPACs, which have become a popular way of raising money on Wall Street because they have a more streamlined regulatory process than traditional initial public offerings.Hindenburg’s report on Lordstown comes about six months after it released a scathing report regarding another EV-SPAC start-up, Nikola. That report also led to federal inquires as well as the resignation of the company’s founder and chairman, Trevor Milton.Short selling is when investors, mostly professional hedge fund managers, borrow shares of a stock from a broker and sell them in the hope of buying them back cheaper. If the stock drops, the investors make a profit off the difference when they return the shares to the broker.— CNBC’s Michael Bloom contributed to this report. More

White House chief medical advisor Dr. Anthony Fauci pushed back on Thursday against Republican Sen. Rand Paul’s claim that people are not at risk of Covid after they have recovered or have been vaccinated.In a fiery exchange during a Senate hearing examining the nation’s coronavirus response efforts, Paul told Fauci that Americans shouldn’t have to wear masks after getting vaccinated because there is “virtually 0% chance” they are going to get Covid-19.”Isn’t it just theater?” the Kentucky junior senator, an ophthalmologist, asked during a Senate Health, Education, Labor and Pensions Committee hearing.”You’ve been vaccinated and you parade around in two masks for show. You can’t get it again,” Paul said. “There’s virtually 0% chance you’re going to get it and you’re telling people that have had the vaccine who have immunity — you’re defying everything we know about immunity by telling people to wear masks who have been vaccinated.”In response, Fauci said, “Here we go again with the theater.””Can I just state for the record that masks are not theater,” Fauci said. “I totally disagree with you.”The emergence of new, highly contagious variants poses a threat to people who have recovered from Covid or who have been vaccinated, he said.Sen. Rand Paul (R-KY) speaks during a Senate Health, Education, Labor and Pensions Committee hearing on the federal coronavirus response on Capitol Hill on March 18, 2021 in Washington, DC.Susan Walsh | Pool | Getty ImagesNew variants, particularly the B.1.351 strain first identified in South Africa, have been shown to evade the protection of vaccines.”In the South African study conducted by [Johnson & Johnson], they found that people who were infected with wild type and were exposed to the variant in South Africa, the 351, it was as if they had never been infected before, they had no protection,” Fauci said.Fauci agreed it was unlikely someone would get infected with the original strain for at least six months, “But we in our country now have variants.”The exchange came a little over a week after the Centers for Disease Control and Prevention released new guidance that said people who are fully immunized can safely visit other vaccinated people indoors without wearing a mask or social distancing.But the CDC also recommended that vaccinated people should still wear masks in public settings, gatherings with unvaccinated people from more than one other household and with people who are at increased risk for severe illness.While a growing body of evidence suggests that people who are inoculated against Covid are less likely to transmit the disease to others, it’s still not known how long someone’s protection might last or the effectiveness of the shots against emerging variants, the CDC said on March 8. More

Jewelry sales could see a slowdown later this year as a broader range of economic activity resumes from a pandemic-induced slump, Signet CEO Gina Drosos told CNBC on Thursday.”We’re very cautious on the back half of the year as the vaccine rolls out and more people are more interested in traveling and entertainment again. We think that could potentially have a negative impact on categories like jewelry,” Drosos said on “Closing Bell.”The chief executive’s comments came after earlier Thursday the owner of Kay Jewelers and Zales reported better-than-expected sales and per-share earnings for the quarter ending Jan. 30.Quarterly revenues of $2.19 billion topped Wall Street’s forecast of $2.1 billion, while the company earned $4.15 per share, 61 cents above analyst estimates. Comparable-store sales rose 7% in the quarter, besting the FactSet estimate of 5%.Signet has seen the momentum carry into the current quarter, Drosos said, adding that the latest round of Covid stimulus checks and upcoming tax refunds are likely to help its business in the next few months.”We’ve seen very strong sales to date in our first quarter. Globally, we’re up 16% quarter to date. North America, that’s over 20%. I think we could also see that flow through into a strong second quarter,” said Drosos, who has served as Signet CEO since 2017. She’s been on the board since 2012.In its earnings release Thursday, the company forecast full-year sales between $5.85 billion and $6 billion for its 2022 fiscal year. Signet reported sales of $5.2 billion for the fiscal year that ended Jan. 30.Signet shares rose by 3.37% in Thursday’s session, setting a fresh 52-week high of $65.84 intraday. The stock is up 740% since this time last year, at which point the intensifying coronavirus pandemic was roiling financial markets.The health crisis took a significant toll on the global economy, disrupting supply chains and putting millions out of work as governments imposed business restrictions meant to slow the spread of the virus.It also changed consumer behaviors, including how people spent their money and what they spent it on as travel and entertainment options were limited. Online shopping sales surged, accelerating a shift away from brick-and-mortar stores that was already in place, analysts say.Signet experienced a boom in e-commerce sales, too. In the quarter ending Jan. 30, online sales were up 70.5% compared with the same period last year, making up 23.4% of all sales. Comparable brick-and-mortar sales were down 4.2% in the quarter.”I think we can continue to grow our business online,” Drosos told CNBC. “I was very pleased to see that in the third and fourth quarter, even after our stores reopened, we still saw e-commerce growth north of 60%.”Signet will continue to “optimize” its footprint of physical locations, she added, “significantly” reducing its presence in lower-trafficked malls while still operating quality stores in other places. “Now we’ve brought a digital capability to that to connect it all together,” she said. More

For the first time in years, retailers across the country are planning to open more stores than they are closing.From Ulta Beauty and Sephora to Dick’s Sporting Goods, Five Below and TJ Maxx, businesses are rebounding from the Covid pandemic and dusting off expansion plans that were put on hold.In the latest example, athletic apparel retailer Fabletics said Thursday that it will open two dozen stores in the United States this year. Even Toys R Us, the beloved toy chain that filed for bankruptcy in 2017 and ultimately liquidated, has a new owner that is looking to open stores ahead of the 2021 holidays.The athletic apparel retailer Fabletics is planning to open two dozen stores in the U.S. this year, bringing its total to 74.Source: FableticsRetailers are eager to double down on brands that remained strong throughout the pandemic-induced recession. Or, they’re excited to test fresh concepts that can bring in new customers. And less-expensive rents are making these opportunities irresistible.Year to date, retailers in the U.S. have announced 3,199 store openings and 2,548 closures, according to a tracking by Coresight Research. The firm tracked a whopping 8,953 closures, along with just 3,298 openings, last year, as the pandemic upended the retail industry and pushed dozens of businesses into bankruptcy.Looking further back, there were a total of 4,548 openings announced by retailers in 2019, and 3,747 in 2018, Coresight said. So far in 2021, openings are already on pace to top each year prior, it said.Following a tsunami of store closures in 2020, the retail real estate landscape is fraught with vacancies. Mall and shopping center owners across the country are looking for tenants to fill that space quickly. Meanwhile, some retailers are more optimistic, having made it through the dark days of the pandemic. They’re looking to take advantage of a market where they largely hold more power over their landlords when they sign new deals or bring negotiations to the table.”There’s more space available, and we’re able to get better terms today than two years ago,” Fabletics co-founder and CEO Adam Goldenberg said in an interview.People walk by a sign displayed outside a retail space for lease as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on August 26, 2020 in New York City.Noam Galai | Getty ImagesIn top retail markets such as Manhattan — which typically are meccas for tourists and office commuters — the trends have been especially pronounced. New York City retail rents tumbled to historic lows last fall, dropping as much as 25% from 2019 levels, according to a biannual report by The Real Estate Board of New York.And rents were still dropping from the third quarter to the fourth. Average retail rents fell 1.6% quarter to quarter, commercial real estate services firm JLL said. The drop was more severe in certain markets: Along Lower Fifth Avenue from 42nd Street to 49th Street, for example, retail rents fell 7.6% quarter over quarter, JLL said. They fell 4.8% in the Madison Avenue district.Meanwhile, empty storefronts remain a headache for landlords. Vacancy rates for retail real estate in New York City rose 21% year over year during the fourth quarter, according to a separate tracking by CBRE.”After the pandemic, we can go back to having workout classes in stores, and special shopping days,” Fabletics’ Goldenberg said. “There’s a real sense of community that comes from having a physical presence.”Great Recession pattern repeatsMany of the companies that have planned for openings this year are focused on value. They range from Dollar General and Dollar Tree to off-price retailers Burlington and Ross Stores and the discount grocers Aldi and Lidl. However, specialty retailers are in the mix, including L Brands’ Bath & Body Works and Gap’s Old Navy.These retailers have been some of the stronger performers in the industry. During L Brands’ fourth quarter, for example, same-store sales at Bath & Body Works were up 22% year over year, while they dropped 3% at its Victoria’s Secret business. At Gap, same-store sales for Old Navy were up 7% during the fourth quarter, while its namesake brand booked a 6% drop. Dozens of Gap and Victoria’s Secret stores will close this year, while both companies invest in expanding their superior brands.Some real estate experts say the growth is reminiscent of what the industry witnessed coming out of the Great Recession. Retailers’ confidence is glowing as they plot more stores, both inside and outside of malls.”We’re very excited about the malls,” American Eagle Outfitters Chief Executive Jay Schottenstein said during an earnings conference call in early March. “This is probably the best opportunity for us to pick up new locations that we’re being offered … at affordable rents for us.”American Eagle is planning to open roughly 60 locations this year under the Aerie banner, which is its loungewear and lingerie brand for teens and young women. Twenty-five to 30 of those new stores will be branded as Offline by Aerie, an athleisure line that the company debuted last summer.Time to experimentSome of the activity is an outgrowth of experimentation that is rippling through the industry. Take Burlington Stores. It is opening a handful of a smaller-format prototype that it hopes to scale in the future.It’s planning to open 75 net new stores this year, 18 of which were openings previously planned for 2020 that were delayed by the pandemic. About a third of the new stores will be smaller, at about 25,000 square feet, versus its typical 50,000- to 80,000-square-foot location, the company said.”This will be a big year for experimentation,” said Deborah Weinswig, Coresight Research founder and CEO. “With the landlords, there has always been this friction as they have tried to extract as much rent as possible from the tenants. Of course, that’s their job. But I think actually it hurt innovation.”This year, Weinswig expects companies will test everything from smaller-format shops to so-called dark stores that serve solely as hubs for shoppers to pick up online orders. Experimentation could come in other ways, too. Nordstrom, for example, is testing shoppable, livestreamed shows.”It’s a tenant’s market right now,” said Perry Mandarino, head of restructuring and co-head of investment banking for B. Riley Securities. “I’ve seen examples of short-term leases with easy-outs, and decent pricing is absolutely available.”Still, not every retailer is a big believer that Americans will return to stores so swiftly.”In two years, as the market looks back on me, I’ll either be considered visionary, or slow to the switch,” Lands’ End CEO Jerome Griffith said in an interview. Lands’ End has just 31 of its own stores today and doesn’t plan to grow that number, but instead is funneling investments into e-commerce.”I’m not feeling positive about foot traffic back in stores,” Griffith said. “People will be doing things, people will be out, but it’s going to be stuff like going to restaurants and bars and going to movies, going to sporting events, going to concerts. But I’m taking a very cautious approach on our stores.””We’ve stopped store expansion,” he said. “Whereas, two years ago, I would’ve told you it’s going to be a big part of our growth strategy.” More

A sign inside a Dollar General store in Chicago.Jim Young | ReutersDollar General is doubling down on brick-and-mortar by building bigger stores and expanding Popshelf, a new chain aimed at higher-income, suburban customers.On Thursday, the discounter laid out aggressive plans for the fiscal year that called for the company to open 1,050 stores, remodel 1,750 sites and relocate 100 others.As it builds new stores, shoppers will see larger sales floors and more merchandise. They’ll also notice more branding for Popshelf, which the retailer debuted in the fall. The company is testing both new locations and using the brand to create a store within a store.Sales of grocery staples and household essentials helped drive Dollar General’s sales growth throughout the pandemic as consumers cooked more at home and watched their budget during a period of economic uncertainty. Its same-store sales rose by 16.3% in the fiscal year.In recent months, however, shares of pandemic beneficiaries — including Dollar General — have fallen as investors bet that Americans will divert their dollars toward dining out and traveling once they get vaccinated. On a Thursday earnings call, Dollar General CEO Todd Vasos made the case why investors should continue to bet on the company. He said the retailer can boost profits by growing its footprint, selling more non-consumable items that have higher margins than food and appealing to a broader range of customers.Chief Operating Officer Jeff Owen said the retailer estimates it could add as many as 17,000 stores across the country — a move that would roughly double its footprint.”Overall, our real estate pipeline remains robust and we are excited about the significant new store opportunities ahead,” he said.As Dollar General adds, remodels and relocates stores, Owen said, it will increase the square footage of its sales floor to make more room for coolers of produce and fresh meat, a bigger assortment of health and beauty products and additional checkout lanes.Vasos said Dollar General tested the larger store formats in 2020 and found they outperformed the rest of the chain with higher sales. It already has some larger stores with a wider assortment of food and general merchandise.Dollar General plans to have 50 Popshelf stores by the end of the fiscal year, more than its original goal of 30, Owen said.Popshelf storeSource: PopshelfThe retailer opened the first two Popshelf stores in the fall near Nashville, Tennessee. Popshelf sells home decor, beauty items, cleaning supplies and party goods, with almost all items costing $5 or less. Its target customer has an annual household income ranging from $50,000 to $125,000 — higher than the $35,000 to $40,000 annual household income of a typical Dollar General customer, according to the company.Owen said the Popshelf stores offer “a fun, affordable and differentiated treasure hunt experience delivered through continually refreshed merchandise.” He said the company wants to expand from its current five stores faster than it planned because of results it saw.Dollar General will kick off a pilot that blends together its namesake brand and Popshelf, he said. At 25 stores, customers will see signs for both labels at the entrance. Inside, Popshelf will be prominently featured in the center as a store-in-store, he said.The tests will focus on areas where customer demographics are somewhere between those of Dollar General and Popshelf — with a $50,000 to $75,000 household income range, Vasos said.”If it works — and we believe it will — there could be some additional ones that we do in 2022 and many more as we continue to move forward,” he said.Shares of the company have risen about 21% over the past year, as of Wednesday’s close. They were down by less than 5% on Thursday afternoon. Earlier, the company posted fourth-quarter earnings that missed estimates and forecast same-store sales would decline 4% to 6% in the coming fiscal year against the unusually high sales levels caused by the pandemic. Looking over a two-year period, Dollar General’s forecast implies 10% to 12% annual same-store sales gains. More