Business

The U.S. Postal Service filed a notice of a temporary price hike for the holiday season.
The service says the adjustment is similar to past years.
The increase would go into effect between Oct. 2 and Jan. 22, 2023.

A United States Postal Service (USPS) worker exits a Grumman Long Life Vehicle.
Paul Weaver | SOPA Images | Lightrocket | Getty Images

The U.S. Postal Service filed a notice Wednesday of a temporary price hike for this year’s peak holiday season, which it said would help cover extra handling costs.
The agency said the adjustment was approved by its board of governors and is now pending review by the Postal Regulatory Commission. The price increase would go into effect on Oct. 2 and remain in place until January 22, 2023.

The agency said the adjustment is similar to past years and will allow it to remain competitive during the peak shipping season.
The price increases depend on the weight of the package and the distance of the delivery. Commercial priority mail packages will see a 75 cent hike, and heavy, long-distance deliveries could see increases of up to $6.50.
The agency noted that it relies on postage, product, and service sales to fund operations.
The announced price hike comes soon after the agency stated plans to buy at least 25,000 electric delivery vehicles.
Read the USPS statement here.

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CNBC’s Jim Cramer on Wednesday said that software company acquisitions that have gotten rolling in recent weeks suggest that stocks in the sector could be close to bottoming.
“The long software nightmare may finally be over, although I still urge you to be selective with these things and stick with the ones that actually make money,” the “Mad Money” host said. 

CNBC’s Jim Cramer on Wednesday said that software company acquisitions that have gotten rolling in recent weeks suggest that stocks in the sector could be close to bottoming.
“The long software nightmare may finally be over, although I still urge you to be selective with these things and stick with the ones that actually make money,” the “Mad Money” host said. 

Some recent acquisition news among software companies includes:

Software stocks that soared during the pandemic came crashing down this year after the Federal Reserve started an aggressive campaign to raise interest rates and tamp down inflation. Some analysts are betting that the pain for software stocks is coming to an end.
Recent announcements of takeover bids and deals involving software companies suggest that the stocks have become cheap enough to attract potential acquirers, and possibly bottom, according to Cramer.
“It’s very hard to figure out where this group might bottom because so many of them are unprofitable, but the fact that private equity’s gotten very interested definitely means something,” Cramer said.
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Disclaimer

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It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

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First Solar Inc: “I like the idea, but I also feel like I’m coming in too high if I tell you to buy it right here.”

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Trinseo PLC: “I’m going to have to say no to that one.”

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Disney lowered its 2024 guidance for Disney+ by 15 million on both the low end and high end.
The new Disney forecast for 2024 is 215 million to 245 million, down from 230 million to 260 million.
Disney reaffirmed Disney+ will be profitable by 2024.

An inflatable Disney+ logo is pictured at a press event ahead of launching a streaming service in the Middle East and North Africa, at Dubai Opera in Dubai, United Arab Emirates, June 7, 2022.
Yousef Saba | Reuter

Disney on Wednesday lowered its longer-term forecast for Disney+ to 215 million to 245 million subscribers, down 15 million on both the low end and high end of the company’s previous guidance.
Disney had previously set its Disney+ guidance in December 2020 at 230 million to 260 million by the end of fiscal 2024. The company reaffirmed its expectation that Disney+ will become profitable by the end of its fiscal 2024 year. Disney’s streaming services lost $1.1 billion in its most recent quarter.

Disney is lowering its forecast for Disney+ after failing to renew Indian Premier League rights for its Disney+ Hotstar streaming service. Excluding Hotstar, Disney Chief Financial Officer Christine McCarthy said Disney+ subscribers should be between 135 million and 165 million by the end of 2024, largely in line with the company’s previous forecast, when it said core Disney+ should make up 60% to 70% of total customers. The new forecast for Hotstar is “up to 80 million,” she said.
Disney shares rose nearly 7% after hours, signaling investors may have feared an even larger cut to the streaming outlook. Several analysts had predicted Disney management would lower its guidance this quarter.
Earlier Wednesday, the company announced subscriber growth numbers well above Wall Street’s expectations. As of the most recent quarter, Disney+ had 152 million subscribers, the company said.
WATCH: NYT’s James Stewart on Disney’s theme park rebound

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Disney+ with no ads is increasing $3 per month to $10.99.
Disney+ with ads will be $7.99 per month.
A bundle of Disney+ and Hulu, both with ads, will be $9.99 per month.

Disney unveiled a new pricing structure that incorporates an advertising-supported Disney+ as part of an effort to make its streaming business profitable.
Starting Dec. 8 in the U.S., Disney+ with commercials will be $7.99 per month — currently the price of Disney+ without ads. The price of ad-free Disney+ will rise 38% to $10.99 — a $3 per month increase.

The price of Hulu without ads will rise by $2 per month, from $12.99 to $14.99, effective Oct. 10. Hulu with ads will go up by $1 per month, rising from $6.99 to $7.99.
Disney announced last month that ESPN+ with ads would go up 43% to $9.99 per month.
The price increases reflect the growing operating loss for Disney’s streaming services. Disney+, Hulu and ESPN+ combined to lose $1.1 billion in the fiscal third quarter, $300 million more than the average analyst estimate, reflecting the higher cost of content on the services. The increased operating loss occurred even while Disney added about 15 million new Disney+ subscribers in the quarter, about 5 million more than analysts estimated.
Disney has previously stated it plans to lose money on Disney+ until 2024. Chief Financial Officer Christine McCarthy reiterated on Wednesday’s earnings conference call that Disney+’s losses will peak during the company’s fiscal 2022.
Average revenue per user for Disney+ decreased by 5% in the quarter in the U.S. and Canada due to more customers taking cheaper multiproduct offerings.

Overall, the company’s quarterly results, also announced Wednesday, beat analysts’ expectations on the top and bottom lines. Disney+ subscriptions rose to 152.1 million during the most recent period, higher than Wall Street’s projections of 147 million.
Counting Disney+, ESPN+ and Hulu (which is partially owned by Comcast), Disney has 221 million streaming subscribers.

Bundled pricing

Disney also announced new bundle prices incorporating its Disney+ product with commercials.
For existing customers only, a bundle of Disney+ without ads and Hulu and ESPN+ with ads will increase by $1, from $13.99 to $14.99.
The price of a bundle of Disney+, Hulu and ESPN+, all with ads, will be $12.99, or $1 lower than the current Disney bundle price.
Consumers will be able to purchase a Disney+ and Hulu bundle for $9.99 per month with commercials. That’s a discount to paying for Disney+ and Hulu with ads separately.
The price of a no-ad Disney+ and no-ad Hulu, with ESPN+, remains $19.99 per month.
Disney will also have new pricing for its Hulu with live TV bundles. Subscribers that want Hulu with live TV and Disney+, Hulu and ESPN+ with commercials will pay $69.99 per month. For existing customers, Disney will offer Disney+ without commercials in that bundle for $74.99. The premium bundle of Hulu with live TV along with Disney+ and Hulu without ads will be $82.99 per month.
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC.

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CNBC’s Jim Cramer on Wednesday said that inflation is finally peaking, which is good news for stocks that have been trampled in recent months.
“The stock market … totally saw peak inflation coming,” the “Mad Money” host said.

CNBC’s Jim Cramer on Wednesday said that inflation is peaking, which is good news for stocks that have been trampled in recent months.
“The stock market … totally saw peak inflation coming. I think you had to be deliberately obtuse to miss this because commodity prices have been collapsing a while ago, but now it’s undeniable,” the “Mad Money” host said.

Stocks jumped on Wednesday after the consumer price index revealed that inflation’s upward climb decelerated in July from the year earlier. All the major indices were up, with the S&P 500 reaching its highest level since May and the Nasdaq Composite closing at its best level since April.
Cramer said that inflation’s peak bodes well for investors looking to pick up shares of stocks they might have shed earlier this year.
“Peak inflation is nirvana for stocks, especially for out-of-favor stocks, like fast-growing tech plays or the financials or the consumer discretionary names,” he said. “That means you can buy everything from Microsoft to Wells Fargo to Target.”
And while this doesn’t mean that the economy is out of the woods when it comes to entering a recession, peaking inflation could help lift stocks even during an economic slowdown, according to Cramer.
“Some companies will absolutely be hurt by the upcoming recession, but others will see their stocks soar because they’re worth more in an environment where inflation is at last possibly under control,” he said.

Disclosure: Cramer’s Charitable Trust owns shares of Wells Fargo and Microsoft.

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Disney posted better-than-expected results on both the top and bottom line, bolstered by increased spending at its domestic theme parks.
On Wednesday, the Walt Disney Company reported that total Disney+ subscriptions rose to 152.1 million during the fiscal third quarter, higher than the 147 million analysts had forecast.

A performer dressed as Mickey Mouse entertains guests during the reopening of the Disneyland theme park in Anaheim, California, U.S., on Friday, April 30, 2021.
Bloomberg | Bloomberg | Getty Images

If Disney+’s subscriber growth is any indication, the rumors that the global streaming market is nearing saturation have been proven untrue.
On Wednesday, the Walt Disney Company reported that total Disney+ subscriptions rose to 152.1 million during the fiscal third quarter, higher than the 147 million analysts had forecast, according to StreetAccount.

At the end of the fiscal third quarter, Hulu had 46.2 million subscribers and ESPN+ had 22.8 million. Combined, Hulu, ESPN+ and Disney+ have over 221 million streaming subscribers. Netflix, long the leader in the streaming space, had 220 million subscribers, according to the most recent tally.
Disney shares rose more than 6% after the closing bell.
The streaming space has been in a state of upheaval in recent weeks, as Netflix disclosed another drop in subscribers and Warner Bros. Discovery announced a shift in content strategy. While Netflix expects subscriber growth to rebound, uncertainty has left analysts and investors wondering what the future holds for the wider industry.
Also Wednesday, the company unveiled a new pricing structure that incorporates an advertising-supported Disney+ as part of an effort to make its streaming business profitable.
During the fiscal third quarter Disney+, Hulu and ESPN+ combined to lose $1.1 billion, reflecting the higher cost of content on the services. Disney’s average revenue per user for Disney+ also decreased by 5% in the quarter in the U.S. and Canada due to more customers taking cheaper multiproduct offerings.

Starting Dec. 8 in the U.S., Disney+ with commercials will be $7.99 per month — currently the price of Disney+ without ads. The price of ad-free Disney+ will rise 38% to $10.99 — a $3 per month increase.

In addition, Disney lowered its 2024 forecast for Disney+ to 215 million to 245 million subscribers, down 15 million on both the low end and high end of the company’s previous guidance.
Disney had previously set its Disney+ guidance in December 2020 at 230 million to 260 million by the end of fiscal 2024. The company reaffirmed its expectation that Disney+ will become profitable by the end of its fiscal 2024 year.
Overall, Disney posted better-than-expected earnings on both the top and bottom line, bolstered by increased spending at its domestic theme parks.
Here are the results:

Earnings per share: $1.09 per share vs. 96 cents expected, according to a Refinitiv survey of analysts
Revenue: $21.5 billions vs. $20.96 billion expected, according to Refinitiv
Disney+ total subscriptions: 152.1 million vs 147.76 million expected, according to StreetAccount

Big quarter for parks

Disney’s parks, experiences and products division saw revenue increase 72% to $7.4 billion during the quarter, up from $4.3 billion during the same period last year. The company said it saw increases in attendance, occupied room nights and cruise ship sailings.
It also touted that its new Genie+ and Lightning Lane products helped boost average per capita ticket revenue during the quarter. These new digital features were introduced to curate guest experience and allow parkgoers to bypass lines for major attractions.
The company said it has been able to bring back in-park experiences such as character meet-and-greets, theatrical performances and nighttime events at Disneyland, which has allowed it to increase capacity at its parks, CEO Bob Chapek said during the company’s earnings call Wednesday. Disney has placed caps on attendance since it reopened after the initial round of pandemic closures in early 2020 and instituted a new online reservation system to control crowds.
“As it relates to demand, we have not yet seen demand abate at all and we still have many days when people cannot get reservations,” Christine McCarthy, Disney’s chief financial officer, said during the company’s earnings call. “So, we’re still seeing demand in excess of the reservations that we are making available for our guests.”
Per capita spending at domestic parks increased 10% during the most recent quarter, compared to the same quarter last year and is more than 40% higher than fiscal 2019, the company said. Occupancy at domestic hotels in the third quarter was 90%.
Chapek pointed to EPCOT’s new Guardians of the Galaxy Cosmic Rewind, the launch of the Disney Wish and the opening of Avenges Campus in Paris Disneyland as enhanced offerings for guests that have driven traffic and revenue to this division.
McCarthy noted that international visitors to domestic parks have continued to be slow to return. Traditionally, those parkgoers account for around 17% to 20% of total guests.
“We expect international visitation when its fully back to actually be additive to margins, because those guests tend to stay longer at the parks and they spend more money when they’re there, as well,” she said.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. Comcast owns a stake in Hulu.

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The Federal Communications Commission on Wednesday denied SpaceX’s bid for nearly $1 billion in subsidies to support rural broadband customers through the company’s Starlink satellite internet network.
In a press release, the FCC said two companies, Starlink and LTD Broadband, “failed to demonstrate that the providers could deliver the promised service” needed to receive the subsidies.

A Starlink satellite terminal, also known as a dish, setup in front of an RV.

The Federal Communications Commission on Wednesday denied SpaceX’s bid for nearly $1 billion in subsidies to support rural broadband customers through the company’s Starlink satellite internet network.
SpaceX, which is controlled by Elon Musk, had been awarded $885.5 million in the FCC’s $9.2 billion auction in December 2020 under the regulator’s Rural Digital Opportunities Fund. The company sought funding to provide satellite internet service to nearly 650,000 locations in 35 states, the FCC noted.

The FCC subsidies are designed to be an incentive for broadband providers to bring service to the “unserved” and hard-to-reach areas of the United States.
In a press release, the FCC said both Starlink and LTD Broadband — another company that initially was awarded $1.3 billion in subsidies under the program — “failed to demonstrate that the providers could deliver the promised service.”
“We must put scarce universal service dollars to their best possible use as we move into a digital future that demands ever more powerful and faster networks. We cannot afford to subsidize ventures that are not delivering the promised speeds or are not likely to meet program requirements,” FCC Chair Jessica Rosenworcel said in a statement.
Rosenworcel added that SpaceX’s technology has “real promise” but emphasized that Starlink is still “developing.”
SpaceX did not immediately respond to CNBC’s request for comment.

Notably, the FCC’s auction in December 2020 represented the first phase in the $20.4 billion RDOF program, which means SpaceX will likely bid in later auction rounds for the remaining funds. Musk’s company was the fourth highest award recipient in terms of dollar value in the first auction among 180 bidding companies.
Starlink is the company’s plan to build an interconnected internet network with thousands of satellites, designed to deliver high-speed internet to anywhere on the planet. SpaceX has launched more than 2,700 Starlink satellites into orbit, and the service had more than 400,000 subscribers as of May. The company has raised capital steadily to fund development of both Starlink and its next-generation rocket Starship, with $2 billion brought in just this year.
The FCC’s denial of Starlink from the RDOF program comes soon after a separate but crucial authorization for SpaceX to provide mobile Starlink internet service to boats, planes and trucks.

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