Raphael Stevens

More stories

  • 188 Shares139 Views

    in Business

    ‘Inside Out 2’ is now the highest-grossing animated movie of all time, surpassing ‘Frozen II’

    Disney and Pixar’s ‘Inside Out 2’ is now the highest-grossing animated movie of all time, surpassing Walt Disney Animation’s “Frozen II” for the box office crown.
    The record-breaking box office for “Inside Out 2” comes after a series of theatrical hits and misses from the company, especially for its animated releases.
    The film has yet to open in Japan, a region that contributed nearly $33 million to the $850.5 million global total of “Inside Out” in 2015.

    Amy Poehler and Maya Hawke voice Joy and Anxiety, respectively, in Disney and Pixar’s “Inside Out 2.”
    Disney | Pixar

    Disney is back on top at the box office.
    On Tuesday, “Inside Out 2” surpassed $1.46 billion in global ticket sales, making it the highest-grossing animated feature of all time, usurping another Disney title, “Frozen II.” Its box office will continue to grow. The film has yet to open in Japan, a region that contributed nearly $33 million to the $850.5 million global total of “Inside Out” in 2015.

    The record-breaking box office for “Inside Out 2” comes after a series of theatrical hits and misses from the company, especially from its animated releases.
    In particular, Pixar has suffered at the box office in the wake of the Covid-19 pandemic. Much of its difficulties have come, in part, because Disney opted to debut a handful of animated features directly on streaming service Disney+ during theatrical closures and even once cinemas had reopened.
    As a result, before “Inside Out 2,” no Disney animated feature from Pixar or its Walt Disney Animation studio had generated more than $480 million at the global box office since 2019.
    Of note, Disney does not consider its 2019 “The Lion King” to be an animated feature despite nearly the entire film being computer animated. It is considered a live-action remake, according to the company. Otherwise, it would be the highest-grossing animated feature, as it collected more than $1.6 billion during its theatrical run. Box office analysts adhere to Disney’s categorization of the film.

    Don’t miss these insights from CNBC PRO More

  • 138 Shares129 Views

    in Finance

    Here’s why you may get a smaller pay raise next year

    The typical worker will get a 4.1% annual raise for 2025, down from 4.5%, according to a WTW survey.
    That growth is still high relative to the recent past.
    Company pay increases are largely dictated by supply-and-demand dynamics in the labor market.
    The job market has cooled from a scorching level in 2021 and 2022.

    Hinterhaus Productions | Stone | Getty Images

    Many workers will see their annual raise shrink next year as the job market continues to cool from its torrid pace in the pandemic era.
    The typical worker will get a 4.1% pay raise for 2025, down from 4.5% this year, according to a new poll by WTW, a consulting firm.

    This is a midyear estimate from 1,888 U.S. organizations that use a fiscal calendar year. Actual raises may change by year-end when the companies finalize their salary budgets.

    The size of workers’ salary increases is “driven primarily” by the supply and demand of labor, said Lori Wisper, WTW’s work and rewards global solutions leader. Affordability and industry dynamics play lesser roles, she added.
    Companies in the survey would likely pay their annual raises by April 1, 2025, she said.

    Job market was ‘unbelievably robust’

    Worker pay in 2021 and 2022 grew at its fastest pace in well over a decade amid an “unbelievably robust” job market, Wisper said.
    Demand for workers hit records as Covid-19 vaccines rolled out and the U.S. economy reopened broadly. Workers quit their jobs readily for better, higher-paying ones, a trend dubbed the great resignation. More than 50 million people quit in 2022, a record.

    Companies had to raise salaries more than usual to compete for scarce talent and retain employees.

    The prevalence of incentives like signing bonuses also “grew dramatically,” said Julia Pollak, chief economist at ZipRecruiter.
    Almost 7% of online job listings offered a signing bonus in 2021, roughly double the pre-pandemic share, according to ZipRecruiter data. The percentage has dropped to 3.8% in 2024.
    “I’m not sure I’ll ever see that kind of job market in my lifetime again,” Wisper said of 2021 and 2022.
    More from Personal Finance:CFPB cracks down on popular paycheck advance programsWhy employees are less interested in workWhy a job is ‘becoming more compelling’ for teens
    Now, the job market has cooled. Hiring, quits and job openings have declined and the unemployment rate has increased.
    Companies may feel they don’t need to offer as much money if they’re not getting as many applications and have fewer job openings, Pollak said.

    Almost half — 47% — of U.S. organizations expect their salary budgets to be lower for 2025, according to WTW. (Companies set a salary budget and use that pool of money to pay raises to workers.)  
    The current environment “feels like we’re seeing more normal circumstances, where demand is back to where it was pre-pandemic in 2018 and 2019, which was still a very healthy job market,” Wisper said.
    Additionally, after two years of declining buying power amid high inflation, the lessening of pricing pressures in recent months has boosted workers’ buying power.

    Still high relative to recent past

    While the typical 4.1% projected raise is smaller than that during the last pay cycle, it’s “still kind of high” relative to recent years, according to Wisper.
    For example, the median annual pay raise had largely hovered around 3% in the years after the 2008 financial crisis, she said.

    The increase to more than 4% during the pandemic era was notable: Salary growth tends to fall instead of rise, Wisper said. For example, it was around 4.5% to 5% in the years leading up to the financial crisis, and had never fully recovered, she said.
    It’s “something that’s never happened before,” Wisper said. “And [the raises] have stuck, to a degree.”

    Don’t miss these insights from CNBC PRO More

  • 188 Shares149 Views

    in Finance

    Major global chip equipment makers’ China revenue share has doubled since U.S. imposed export controls

    Four of the world’s largest chip equipment manufacturers have more than doubled the share of their China revenue since late 2022, Bank of America analysts said.
    “China accelerated its purchase of semi manufacturing equipment since the U.S. imposed tighter export restrictions in October 2022, aiming to develop its own semi manufacturing capability,” the report said.
    The research found the companies’ China revenue more than doubled from 17% of total revenue in the fourth quarter of 2022 to 41% in the first quarter of 2024.

    A worker produces chips at a semiconductor manufacturing enterprise in Binzhou, China, on June 4, 2024.
    Nurphoto | Nurphoto | Getty Images

    BEIJING — Four of the world’s largest semiconductor equipment manufacturers, including ASML, have seen the share of their China revenue more than double since late 2022, Bank of America analysts said in a report Monday.
    “China accelerated its purchase of semi manufacturing equipment since the U.S. imposed tighter export restrictions in October 2022, aiming to develop its own semi manufacturing capability,” the report said.

    The BofA analysis looked at Lam Research, ASML, KLA Corp. and Applied Materials.
    The research found the companies’ China revenue more than doubled from 17% of their total revenue in the fourth quarter of 2022 to 41% in the first quarter of 2024.
    “Tech, especially semi, is at the center stage of trade tensions with China, which could be more at risk if tensions further escalate from here,” the report said.
    The U.S. in October 2022 started imposing sweeping export controls on U.S. sales of advanced semiconductors and related manufacturing equipment to China. Last week, Bloomberg reported, citing sources, that the Biden administration was considering broader restrictions on semiconductor equipment exports to China that could affect non-U.S. companies.
    Beijing, meanwhile, has sought to bolster its tech self-sufficiency, a goal top leaders reaffirmed at a key policy meeting last week.
    The VanEck Semiconductor ETF (SMH), which tracks U.S.-listed chip companies, has fallen in the last week but is still holding gains of nearly 46% for the year so far. More

  • 150 Shares169 Views

    in Finance

    Stocks making the biggest moves after hours: Alphabet, Tesla, Visa and more

    A dog looks out the window from a Tesla electric vehicle charging at a Tesla Supercharger location in Santa Monica, California, on May 15, 2024.
    Patrick T. Fallon | AFP | Getty Images

    Check out the companies making headlines in extended trading:
    Alphabet — The tech giant slipped 1% despite a beat on both top and bottom lines in the second quarter. Alphabet earned $1.89 per share on $84.74 billion in revenue. Consensus estimates had called for earnings of $1.84 per share on $84.19 billion in revenue. However, revenue at its YouTube advertising segment missed forecasts.

    Tesla — Shares of the electric vehicle maker declined 4.7% after second-quarter earnings missed consensus estimates. Tesla reported adjusted earnings per share at 52 cents, while analysts surveyed by LSEG had called for 62 cents per share. On the other hand, the company posted $25.5 billion in quarterly revenue, which was slightly higher than the $24.77 billion estimated by the Street. 
    Visa — Shares slipped more than 2% after the company posted a revenue miss in its fiscal third quarter. Visa reported $8.9 billion in revenue, which came in slightly below the $8.92 billion forecast by analysts polled by LSEG. Meanwhile, payments volume rose 7% in the quarter. 
    Seagate — Shares rallied more than 6% after Seagate posted an earnings and revenue beat in the fiscal fourth quarter. Seagate earned $1.05 per share, excluding items, on $1.89 billion in revenue. Analysts surveyed by LSEG had estimated it would earn 75 cents per share on revenue of $1.87 billion. The company cited an improving cloud environment for its stronger performance.
    Capital One Financial — Shares of the credit card issuer fell about 1% after its second-quarter profit fell from a year ago as the bank put aside more money to offset potential credit losses. Revenue rose 5% to $9.51 billion from the year-ago period, but was lower than analysts surveyed by LSEG had expected.
    Texas Instruments — The chipmaker rallied 5% after reporting better-than-expected earnings. Texas Instruments recorded $1.22 in earnings per share versus the consensus estimate of $1.17 per share, per LSEG. The company’s revenue of $3.82 billion came in line with forecasts.

    Mattel — The toymaker advanced more than 1% after announcing its second-quarter results. Its adjusted earnings per share of 19 cents topped analysts’ estimates for 17 cents per share, according to LSEG data. Revenue of $1.08 billion slightly missed forecasts of $1.1 billion. Mattel reiterated its full-year guidance and highlighted its gross margin expansion.
    Cal-Maine Foods — Shares of the nation’s largest egg producer fell 1% as the avian flu outbreak continues to pressure its performance. In the fiscal fourth quarter, earnings of $2.32 per share were higher than a year ago, but shy of the $2.41 per share analysts predicted, according to FactSet. Sales of $640.8 million also fell short of the $652.3 million estimate.
    Enphase Energy — The solar energy stock added 5% despite weaker-than-expected second-quarter results. Enphase posted earnings of 43 cents per share, after adjustments, which was 5 cents below consensus estimates, according to LSEG. Revenue of $304 million also fell short of the $310 million analysts forecast. However, shares rose on better-than-expected margins and its third-quarter forecast of between $370 million and $410 million in revenue, which was above the $404 million analyst estimate.
    Chubb — The insurance company gained nearly 1%. Adjusted earnings per share came in at $5.38 in the second quarter, beating the consensus estimate of $5.14 per share, per FactSet. 
    — CNBC’s Christina Cheddar Berk contributed reporting. More

  • 100 Shares109 Views

    in Finance

    Why is Xi Jinping building secret commodity stockpiles?

    Over the past two decades China has devoured enormous amounts of raw materials. Its population has grown bigger and richer, requiring more dairy, grain and meat. Its giant industries have been ravenous for energy and metals. In recent years, though, the economy has suffered from political mismanagement and a property crisis. Chinese officials are adamant that they want to shift away from resource-intensive industries. Logic dictates that the country’s appetite for commodities should be shrinking, and shrinking fast.In reality, the opposite is happening. Last year China’s imports of many basic resources broke records, and imports of all types of commodities surged by 16% in volume terms. They are still rising, up by 6% in the first five months of this year. Given the country’s economic struggles, this does not reflect growing consumption. Instead, China appears to be stockpiling materials at a rapid pace—and at a time when commodities are expensive. Policymakers in Beijing seem to be worried about new geopolitical threats, not least that a new, hawkish American president could seek to choke crucial supply routes to China. More

  • 150 Shares169 Views

    in Business

    June home sales slump, pointing to a buyer’s market as supply increases

    Sales of previously owned homes dropped 5.4% in June compared with May.
    Inventory jumped 23.4% from a year ago to 1.32 million units at the end of June, coming off record lows but still just a 4.1-month supply.
    The median price of an existing home sold in June was $426,900, an increase of 4.1% year over year

    A home is offered for sale on March 22, 2024 in Chicago, Illinois. 
    Scott Olson | Getty Images

    Sales of previously owned homes dropped 5.4% in June compared with May, to 3.89 million units on a seasonally adjusted, annualized basis, according to the National Association of Realtors. Sales were also 5.4% lower than June of last year. This is the slowest sales pace since December.
    These are closed sales, so based on contracts signed mostly in April and May, when the average rate on the 30-year fixed mortgage jumped above 7%. Rates have pulled back slightly since then, to the high 6% range.

    “We’re seeing a slow shift from a seller’s market to a buyer’s market,” said Lawrence Yun, chief economist for the Realtors. “Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis.”
    Inventory jumped 23.4% from a year ago to 1.32 million units at the end of June, coming off record lows but still just a 4.1-month supply. A six-month supply is considered balanced between buyer and seller.
    These inventory levels are the highest supply since May 2020, boosted by homes sitting on the market longer. The average time that a home sat on the market was 22 days, up from 18 days a year ago.
    Even that new supply, however, is not helping ease prices. The median price of an existing home sold in June was $426,900, an increase of 4.1% year over year and an all-time high for the second straight month. Part of that is skewed because the higher end of the market is much stronger.
    Sales of homes priced over $1 million was the only price category seeing gains over last year, while the biggest drop in sales was in the $250,000 and lower range.

    Supply of homes for sale is weakest on the lower end, but is seeing a new surge now. While the sales price nationally is high, new listing prices are lower.
    “The median listing price is being held down by an influx in smaller and lower-priced listings. In fact, the number of for-sale homes in the $200k to $350k price bucket surged by 50% compared to a year ago,” said Danielle Hale, chief economist for Realtor.com.
    Higher-end buyers tend to use more cash, and 28% of sales were all cash, up from 26% a year ago. Investors pulled back a bit, though, making up 16% of sales, down from 18% one year ago.
    “Assuming more inventory continues to increase, two things would happen. Either home sales rise, or, if the prices do not rise, the prices would buckle down,” Yun added.

    Don’t miss these insights from CNBC PRO More

  • 125 Shares179 Views

    in Business

    GM slows its EV plans again even as sales grow

    GM is again slowing its plans for all-electric vehicles by further delaying a second U.S. electric truck plant and the Buick brand’s first EV.
    The delay also means the company will not achieve a prior target of having North American production capacity of 1 million EVs by 2025.
    GM did not update the timing on Buick’s first EV, which was expected in 2024.

    GM’s 2024 Chevrolet Equinox EV during a media launch event for the vehicle in Detroit, May 16, 2024.
    Michael Wayland / CNBC

    DETROIT – General Motors said Tuesday it is again slowing its plans for all-electric vehicles by further delaying a second U.S. electric truck plant and the Buick brand’s first EV.
    The six-month delay in retooling the electric truck plant in Michigan, until mid-2026, also means GM will not achieve a prior target of having North American production capacity of 1 million EVs by 2025.

    We are committed to growing responsibly and profitably,” GM CEO Mary Barra told investors Tuesday during the company’s second-quarter earnings call.
    Barra’s comments come a week after she raised concerns about GM hitting its North American EV production capacity target.
    Barra did not provide updated timing on Buick’s first EV, which was expected in 2024. The entire Buick brand has targeted being fully electric by 2030, as part of GM’s plans to exclusively offer consumer EVs by 2035.
    The changes add new questions about the Detroit automaker’s plans for future battery cell plants other than two current joint venture facilities with LG Energy Solution in North America. GM previously announced plans for four of the multibillion-dollar plants in the U.S. by 2026.
    Barra on Tuesday said the company would grow cell production in a “meaningful cadence.”

    GM CFO Paul Jacobson declined to discuss potential plans to delay or cancel the automaker’s future EV battery cell plants, aside from the two facilities making cells in Ohio and Tennessee.
    “We’re going to continue to be guided by the customer. We’re rapidly scaling in cell plants one and two,” Jacobson said during a media briefing. “We have nothing to comment on right now.”
    GM’s U.S. EV deliveries increased 40% during the second quarter compared with a year earlier to 21,930 units. Still, EVs made up only 3.2% of its total second-quarter U.S. sales.
    Jacobson said the company is set to ramp up assembly to achieve production and vehicle wholesales of between 200,000 and 250,000 all-electric vehicles in North America this year. He said the company wholesaled about 75,000 of its new EVs during the first half of the year.
    Jacobson reiterated GM expects its EVs to be profitable on a production, or contribution-margin basis, once it reaches output of 200,000 units by the fourth quarter.
    “We’re still holding to that,” Jacobson said, adding additional EV sales are expected to lower the company’s earnings, as they will be less than variable profits of GM’s traditional gas models

    Don’t miss these insights from CNBC PRO More

  • 188 Shares179 Views

    in Business

    Lawmakers introduce bipartisan bill aiming to crack down on drug middlemen as scrutiny ramps up

    Bipartisan lawmakers introduced a new bill that aims to crack down on the business practices of drug supply chain middlemen who allegedly inflate prescription medication prices in the U.S.
    The legislation aims to lower costs for patients enrolled in federal healthcare programs and ensure that community pharmacies are reimbursed fairly by so-called pharmacy benefit managers.
    It comes amid a House committee hearing featuring testimony by the three largest PBMs, UnitedHealth Group’s Optum Rx, CVS Health’s Caremark and Cigna’s Express Scripts.

    Feverpitched | Getty Images

    Bipartisan lawmakers introduced a new bill on Tuesday that aims to crack down on the business practices of drug supply chain middlemen who are widely accused of inflating prescription medication prices and harming U.S. patients and pharmacies.
    The legislation aims to ensure community pharmacies can provide care to patients enrolled in federal health-care programs while being reimbursed “fairly and transparently” by so-called pharmacy benefit managers, or PBMs. Under the “Pharmacists Fight Back Act,” seniors covered by Medicare and Medicaid, government employees and active duty service members, among other patients, would see lower health-care costs and have more freedom to choose which pharmacy to get their prescriptions from, according to a fact sheet on the bill.

    Reps. Jake Auchincloss, D-Mass., and Rep. Diana Harshbarger, R-Tenn., unveiled the bill ahead of a House Oversight and Accountability Committee hearing about the drug middlemen’s tactics on Tuesday. Executives of three of the largest PBMs – UnitedHealth Group’s Optum Rx, CVS Health’s Caremark and Cigna’s Express Scripts – will testify on allegations that they play a role in rising healthcare costs, as federal scrutiny of their practices mounts. 
    The new bill joins dozens of other bipartisan efforts on the federal and state level to reform PBMs, which negotiate rebates with drug manufacturers on behalf of insurers, large employers and federal health plans. Those middlemen also create lists of medications, also known as formularies, that are covered by insurance and reimburse pharmacies for prescriptions. 
    But lawmakers and drugmakers alike argue that PBMs overcharge the plans they negotiate rebates for, underpay pharmacies and fail to pass on savings from those discounts to patients. Auchincloss said those practices have allowed PBMs to trap $300 billion in revenue in the middle of the drug supply chain between manufacturers and patients.
    Meanwhile, PBMs contend that drugmakers are responsible for setting high list prices for drugs, and argue that their tactics shield patients from high healthcare costs.
    Legislation targeting PBMs advanced through House and Senate committees with bipartisan support last year, and one proposal overwhelmingly passed the House in December. But that legislative momentum has stalled since Congress left PBM reform out of a massive government spending package earlier this year. 

    Meanwhile, the Biden administration has ramped up pressure on PBMs as Americans struggle to afford prescription drugs. The Federal Trade Commission is planning to sue Caremark, Express Scripts and OptumRx, CNBC previously reported. 

    Pedestrians walk by a CVS store on November in San Francisco, California.
    Justin Sullivan | Getty Images

    The new bill would do some of the same things as earlier legislation would, such as increasing transparency around certain PBM business practices and banning spread pricing, or charging plans more than what they pay pharmacies for a drug. 
    But Auchincloss, who co-led another PBM bill that passed the House last year, said his new legislation is “bigger and tougher,” and focuses on pharmacies. A Tuesday release about the bill also described it as the “most comprehensive PBM reform ever introduced at the federal level.”
    “It seeks to take the pharmacists’ view and say, ‘What is making it impossible for pharmacists to thrive as small business owners and provide clinical and pharmacological advice to the patients that they serve?'” Auchincloss told CNBC. “We’re systematically tackling the impediments to that mission …This bill is about those pharmacists fighting back against corporate greed.” 
    Auchincloss pointed to a new pharmacy reimbursement model under the bill, which would largely center around a medication’s so-called national average drug acquisition cost, or NADAC.  That measures the average price pharmacies pay to purchase a drug from manufacturers or wholesalers based on a survey of invoices. 
    “That is going to ensure that the actual cost of goods is what the price is predicated on,”, Auchincloss said. He added that the bill’s reimbursement model is most relevant to generic rather than branded prescription drugs. 
    Pharmacies are typically paid using a complicated system not directly based on what they spend to purchase medications. That model, which involves a multitiered network of insurers, manufacturers, PBMs and pharmacies, leads to ambiguity around fees and markups added to the original cost of a drug. 
    Among the bill’s other efforts, it requires PBMs to share 80% of rebates with patients and prohibits several other practices. It would bar requiring patients to obtain branded medications when a cheaper generic version is available, steering patients to PBM-affiliated pharmacies and excluding any in-network pharmacy from filling a prescription, among other tactics.
    The bill would “put in place much-needed reforms to stop the gouging of independent pharmacies, make life-saving drugs more affordable for patients, and implement solutions that will yield savings to taxpayers,” Harshbarger said in a statement. More