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The $100 million-plus in expected box-office receipts for Universal Studios’ and Blumhouse’s “M3gan” is good news for the film business.
“M3gan” is the latest in a string of successful theatrical runs for the horror genre.
2023 is packed with horror film releases, including “Knock at the Cabin.”

A lifelike doll programmed to be a child’s greatest companion and a parent’s greatest ally turns murderous in Universal Studios and Blumhouse’s “M3GAN.”

A fashion-forward, murderous doll is ringing up big bucks at the box office.
“M3gan,” the newest release from the Universal Studios and Blumhouse collaboration, will end up with more than $100 million globally. It’s the latest success in a string of lucrative theatrical runs for the horror genre.

While Hollywood’s big-budget blockbusters typically get the most attention, the consistently strong performance of scary movies at movie theaters is good news for the cinema industry.
The pandemic fundamentally altered how and where consumers view entertainment. To be sure, people have returned to theaters, but not in the same volume as pre-pandemic times. Additionally, fewer theatrical releases have resulted in a smaller overall box office in the last year. The domestic box office reached $7.5 billion in 2022, better than $4.58 billion collected in 2021, but down around 34% compared to 2019.
Films like “M3gan” collectively add incremental value to the box office. In 2022, the horror genre accounted for around $700 million in domestic ticket sales, according to data from Comscore. While that figure is down compared to pre-pandemic levels, it indicates persistent demand for spooky entertainment as the theater business rebounds.

A scary good year

Paramount and Universal were the top contributors of horror content last year. Paramount’s “Smile” sold $105 million in tickets domestically and $217 million globally. Its newest installment in the Scream franchise took in $81 million in the U.S. and Canada and $137 million worldwide.
Universal’s “Nope” generated $123 million domestically and $171 million globally, while “The Black Phone” scored $90 million stateside and $160 million worldwide. The studio also released “Halloween Ends,” leading to $64 million in domestic ticket sales and $104 million globally, even though it hit streaming service Peacock the same day.

Ethan Hawke stars in Blumhouse and Universal’s “The Black Phone.”

Additionally, Disney’s Searchlight Pictures released “The Menu,” which snared $38 million domestically and $70 million worldwide.
Notably, Disney and Marvel Studios’ “Doctor Strange in the Multiverse of Madness,” which features horror elements, was not included in the tally. The film generated $411 million during its run in the U.S. and Canada and nearly $1 billion worldwide.
“We’re in the middle of horror’s new golden age,” said Shawn Robbins, chief analyst at BoxOffice.com. “It’s a genre that has ebbed and flowed in past decades but one that’s always evolved, maintained commercial appeal, and helped introduce new filmmakers to the world.” 
Here are several titles to expect from the horror genre in 2023:

Universal’s “Knock at the Cabin” — Feb. 3
Paramount’s “Scream VI” — March 10
Sony’s “Insidious: Chapter 5” — July 7
Warner Bros.’ “The Nun 2” — Sept. 8
Neon’s “Cuckoo” — Sept. 29
Universal’s “The Exorcist” — Oct. 13
Lionsgate’s “Saw X” — Oct. 27

Scaring up dollars

Blumhouse, a producer of “M3gan,” has revolutionized the horror genre in the last decade, turning small budget flicks into huge box-office returns. The studio has been responsible for the profitable and popular “Paranormal Activity” films as well as the Academy Award-winning “Get Out.”
“Paranormal Activity,” which was released in 2009, had a budget of just $15,000 and went on to make more than $107 million in the U.S. and nearly $200 million worldwide
Following that model, “M3gan” was made for just $12 million and is on its way past $100 million. Already, Universal and Blumhouse have greenlighted a sequel due out in 2025.

Still from Universal and Blumhouse’s “M3GAN.”

Last year, most wide-released horror films had a budget of between $16 million and $35 million. The only outlier was “Get Out” director Jordan Peele’s “Nope,” which carried a $68 million production budget. Films with smaller budgets mean don’t have to generate blockbuster-size ticket sales in order to turn a profit. Those economics also help to make horror films one of the most consistently well-performing genre of all time.
For example, consider “Skinamarink,” an experimental horror film out of Canada, which cost $15,000 to make and has gone on to generate more than $1 million at the box office.
“At the heart of its sustainability has been a generational turnover of young audiences that drive many of these movies at the box office, a pre-pandemic constant that’s picked up right where it left off as post-pandemic moviegoing has rebounded,” Robbins said.
Unlike fans of comic book films, who can be easily turned off by an unfaithful adaptation of their favorite character, horror fans don’t seem to mind if the film isn’t totally up to par. So long as the movie had some good scares and was seen as a fun experience, they’ll be back for the next installment.
Additionally, in the last two decades, the quality of the horror genre has greatly improved, due in large part to support from indie companies such as A24 and Neon, as well as distribution from streaming services such as Netflix, Hulu and Peacock.
“A systematic, incremental increase in the quality of horror films, a genre that was once considered the smash and grab, take the money and run, open on Friday, close on Sunday genre, has now, with the creative vision of amazing production companies and brilliant filmmakers, earned respect of critics and audiences alike,” said Paul Dergarabedian, senior media analyst, at Comscore.
“M3gan,” for example, currently holds a 95% “Fresh” rating on Rotten Tomatoes.
“The genre and its audience are invaluable to the industry ecosphere, and 2023’s promising release slate looks to help maintain that status quo,” Robbins said.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal has a partnership with Blumhouse and owns Rotten Tomatoes.

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Monday – Friday, 6:00 – 7:00 PM ET

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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AT&T Inc: “It’s not as bad as it used to be.”

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Plug Power Inc: “[CEO] Andy Marsh has promised us profitably for a very long time. … My bountiful patience is beginning to get tried.”

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Devon Energy Corp: “Keep buying.”
Disclaimer: Cramer’s Charitable Trust owns shares of Devon Energy.

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Monday – Friday, 6:00 – 7:00 PM ET

CNBC’s Jim Cramer on Friday offered investors a list of e-commerce plays he believes are worth buying, despite the group’s rough performance in 2022.
He cautioned that while he believes the group’s struggles are temporary, it’s still too early to buy many of the names in the e-commerce space — including Amazon. 

CNBC’s Jim Cramer on Friday offered investors a list of e-commerce plays he believes are worth buying, despite the group’s rough performance in 2022.
“There are still some e-commerce plays that I’m willing to get behind here, the ones that have truly prioritized profitability,” he said.

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10 hours ago

Here is his list: 

Etsy
Shopify
Pinterest
MercadoLibre
Chewy
Prologis

E-commerce stocks skyrocketed during the height of the Covid pandemic, as at-home consumers made purchases online rather than in-store. But when the economy reopened, consumers prioritized spending on travel and experiences over goods.
That shift, along with the Federal Reserve’s interest rate hikes, sent e-commerce stocks tumbling from their highs last year.
Cramer cautioned that while he believes the group’s struggles are temporary, it’s still too early to buy many of the names in the e-commerce space — including Amazon. 
He said that one of his biggest concerns with the company is that it needs to cut more costs. Amazon said earlier this month that it plans to lay off over 18,000 employees. 

While that might seem like a sizable cut, “this is a company with well over a million employees — to them, this is a drop in the bucket,” Cramer said.
But Amazon’s stock will eventually bottom, he said. “I think the business can eventually make a big comeback and there will come a point where the stock’s a screaming buy.”
Disclaimer: Cramer’s Charitable Trust owns shares of Amazon.

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Monday – Friday, 6:00 – 7:00 PM ET

CNBC’s Jim Cramer urged investors to be careful and slow with their decisions when the new earnings season kicks off next week.
The biggest companies in tech, retail and consumer goods will report their quarterly financial results.

CNBC’s Jim Cramer on Friday urged investors to make careful, considered decisions regarding their portfolios when the new earnings season kicks off next week.
“It’s a pivotal week. First of three. Be on your toes. Listen to the calls. Don’t take any action unless you’re certain. It’s very hard to be certain about anything that’s just reported,” he said, reiterating some of his five rules for earnings season.

The highly anticipated earnings season will see the biggest companies in tech, retail and consumer goods report their quarterly financial results. 
Cramer previewed the slate of quarterly reports. All estimates for earnings, revenue and economic data are courtesy of FactSet.
Tuesday: General Electric, 3M, Union Pacific, Microsoft
General Electric

Q4 2022 earnings release at 6:30 a.m. ET; conference call at 8 a.m. ET
Projected EPS: $1.15
Projected revenue: $21.25 billion

The company should “show us why we would want to be in its energy division. That’s the next spinoff after health care, but all we really want is the booming aerospace business,” he said.

3M

Q4 2022 earnings release at 6:30 a.m. ET; conference call at 9 a.m. ET
Projected EPS: $2.37
Projected revenue: $8.04 billion

Cramer said that 3M’s roughly 5% dividend yield isn’t enough, considering the litigation risk from lawsuits against the company.
Union Pacific

Q4 2022 earnings release at 7:45 a.m. ET; conference call at 8:45 a.m. ET
Projected EPS: $2.78
Projected revenue: $6.31 billion

The company’s earnings call should give insight into the state of American commerce, Cramer said.
Microsoft

Q2 2023 earnings release at 4:05 p.m. ET; conference call at 5:30 p.m. ET
Projected EPS: $2.30
Projected revenue: $53.13 billion

Investors will “learn whether those layoffs Microsoft announced this week are grounded in disappointment or prudence,” he said.
Wednesday: Boeing, IBM, ServiceNow
Boeing

Q4 2022 earnings release at 7:30 a.m. ET; conference call at 10:30 a.m. ET
Projected EPS: 22 cents
Projected revenue: $20.24 billion

Cramer said he expects a solid quarter from the company.
IBM

Q4 2022 earnings release at 4:08 p.m. ET; conference call at 5 p.m. ET
Projected EPS: $3.59
Projected revenue: $16.13 billion

He said he likes the stock going into the quarter because it’s a defensive play with a strong 4.7% yield.
ServiceNow

Q4 2022 earnings release at 4:10 p.m. ET; conference call at 5 p.m. ET
Projected EPS: $2.02
Projected revenue: $1.94 billion

The earnings call will show whether beaten-down enterprise software stocks will find a reprieve this year, he said.
Thursday: Dow, Southwest Airlines
Dow

Q4 2022 earnings release at 6 a.m. ET; conference call at 8 a.m. ET
Projected EPS: 58 cents
Projected revenue: $12.05 billion

Cramer said the company’s stock “seems like a buy.”
Southwest Airlines

Q4 2022 earnings release at 6:30 a.m. ET; conference call at 12:30 p.m. ET
Projected loss: 7 cents per share
Projected revenue: $6.22 billion

The company is no longer one of the best-run airlines, he said.
Friday: American Express

Q4 2022 earnings release at 7 a.m. ET; conference call at 8:30 a.m. ET
Projected EPS: $2.23
Projected revenue: $14.23 billion

“American Express is a terrific ‘life-is-too-short’ play,” he said.
Disclaimer: Cramer’s Charitable Trust owns shares of Microsoft.

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The Supreme Court’s justices all were questioned as part of an investigation into last year’s leak of a draft opinion of the ruling that overturned the federal right to abortion, the court revealed Friday.
The statement came a day after the Supreme Court refused to say whether the justices were among the nearly 90 court staffers and clerks who were questioned in the probe.
No suspect has been identified in the leak to Politico of the draft opinion by Justice Samuel Alito.

Anti-abortion demonstrators take part in the annual “March for Life” for the first time since the U.S. Supreme Court overturned Roe v Wade abortion decision, in Washington, January 20, 2023.
Evelyn Hockstein | Reuters

Each of the Supreme Court’s justices was questioned — some of them multiple times — as part of an investigation into last year’s leak of a draft opinion of the ruling that ended up overturning the court’s landmark Roe v. Wade abortion decision, the head of that probe revealed Friday.
The statement came a day after the Supreme Court refused to say whether the justices were among the nearly 100 court staffers and clerks who were questioned in the probe. The court said that investigation failed to identify the person or persons who leaked the draft opinion, written by Justice Samuel Alito, to Politico in May.

None of the justices or their spouses were identified as potential suspects, according to Gail Curley, the marshal of the Supreme Court, who oversaw the leak probe.
But unlike others interviewed, none of the justices was asked to give a sworn affidavit denying they leaked the Alito opinion, Curley said in a statement.
The June ruling tossed out the Supreme Court’s five-decade-old decision in Roe v. Wade, which had established there was a constitutional right to abortion.

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“During the course of the investigation, I spoke with each of the Justices, several on multiple occasions,” Curley said in a statement.
“The Justices actively cooperated in this iterative process, asking questions and answering mine,” Curley said. “I followed up on all credible leads, none of which implicated the Justices or their spouses. On this basis, I did not believe that it was necessary to ask the Justices to sign sworn affidavits.”

The court has nine justices. Eight of the current justices were serving at the time of the abortion ruling. Justice Stephen Breyer retired after the ruling was released. CNBC has asked a court spokesman whether Breyer was among those interviewed by Curley.
Curley’s report on her failure to identify the leaker, which was released Thursday, did not mention that she had questioned the justices.
The report did say Curley’s team “conducted 126 formal interviews of 97 employees, all of whom denied disclosing the opinion.”
Each of those employees was asked to sign a sworn affidavit denying they disclosed the draft opinion.

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Sotheby’s is selling a LeBron James jersey worn during his NBA Finals Game 7 victory with the Miami Heat against the San Antonio Spurs in 2013.
The item is the most valuable LeBron James jersey to ever be offered at auction and among the most valuable game-worn jerseys of all time, according to Sotheby’s.
Sotheby’s expects the jersey to sell for between $3 million and $5 million in the auction.

LeBron James game-worn jersey from the athletes NBA finals game 7 victory over the Miami Heat in 2013, is on display during a press preview at Sotheby’s auction House on January 20, 2023, in New York City.
Angela Weiss | Afp | Getty Images

Sotheby’s is listing an iconic jersey worn by LeBron James during his NBA Finals Game 7 victory with the Miami Heat against the San Antonio Spurs in 2013.
The company expects the jersey, to sell for between $3 million and $5 million in the online auction, making it among the most valuable game-worn jerseys of all time, according to a press release. The jersey, which he wore in the first half, is said to be James’ most valuable item to go up for sale.

The jersey commemorates James’ first NBA Finals Game 7 appearance, which was one of the most significant performances of his career. The bout against the San Antonio Spurs received the highest point tally of any winning Game 7 performance in NBA Finals history, Sotheby’s said in the release. The company added that the jersey also commemorates James’ back-to-back championships and NBA Finals MVP awards with the Miami Heat. James is one of only six players in NBA history to be awarded back-to-back NBA Finals MVP trophies.
James’ jersey will be showcased as part of Sotheby’s new cross-category sale, “The One,” which showcases objects from ancient civilizations as well as antique items related to fashion and entertainment, according to the press release.
The inaugural live auction will take place in New York on January 27.
“As Lebron is on the precipice of surpassing Kareem Abdul-Jabbar as the NBA’s all-time leading scorer, it’s significant to be offering a defining object in LeBron’s career which many attributes as the legacy-defining milestone that began the comparison between himself and Michael Jordan as the greatest player of all time,” Brahm Wachter, Sotheby’s head of streetwear and modern collectibles, said in the release.
Retail investors have expanded into sports collectible markets to diversify their assets amid the uncertainty of traditional investing markets.
Sotheby’s has entered the sports memorabilia space in recent years, and currently holds the record for any game-worn item of sports memorabilia after selling Michael Jordan’s 1998 “Last Dance” jersey for $10.1 million in September, according to the press release. The jersey surpassed the previous record of Diego Maradona’s “Hand of God” jersey, which sold for $9.3 million.

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Wayfair’s stock price jumped more than 20% Friday after the Boston-based retailer announced layoffs to support company-wide restructuring and cost-cutting efforts.
“Unfortunately, along the way, we over complicated things, lost sight of some of our fundamentals and simply grew too big,” Wayfair co-founder and CEO Niraj Shah wrote in an email to staff.
The company now expects to return to adjusted EBITDA profitability earlier in 2023.

Niraj Shah, CEO, Wayfair
Ashlee Espinal | CNBC

Wayfair’s stock price jumped more than 20% Friday after the retail giant said it will let go of roughly 1,750 employees, or 10% of its global workforce, to support company-wide cost reductions.
The announcement marks Wayfair’s second round of job cuts in less than six months since the retailer let go of about 5% of its workforce in August. Executives expect the two rounds of layoffs will save $750 million a year, according to a press release.

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Wayfair has already begun layoffs in Europe, and employees in North America will receive notice Friday about their employment status, Wayfair co-founder and Chief Executive Officer Niraj Shah wrote to staff in a company-wide email on Friday morning. The retailer will offer employees severance based on each individual’s circumstances, such as their country, tenure and level, Shah wrote.
The company said it expects to incur between $68 million and $78 million in costs, mostly related to employee severance and benefits, primarily within the first quarter of 2023.
Retail giants like Wayfair have been forced to reconcile with the reverse in their pandemic-era gains as consumers shift their spending priorities away from categories like home furnishings. The online furniture retailer, which was one of the pandemic’s winners as consumers spent more on home decoration and office furniture, has since struggled with supply chain issues that resulted in order delays and frustrated customers.
Wayfair reported a revenue decrease of 9% year over year and a $286 million loss in the third quarter of 2022. Sharp declines in recent quarters come after the Massachusetts-based retail giant saw a 55% jump in its revenue in 2020 to $14.1 billion.
“Unfortunately, along the way, we over complicated things, lost sight of some of our fundamentals and simply grew too big,” Shah said in the email to staff. “On an operating basis, we can see and feel that we’re not as agile as we used to be or need to be.”

Shah wrote that the company’s operating expenses relative to its revenue grew to 17% in the past year after sitting at about 10% to 11% for most of the company’s 20-year history. In addition to layoffs, he added the retailer has slimmed costs in advertising, insurance policies, janitorial services and software licenses.
The company now expects to return to adjusted EBITDA profitability earlier in 2023 as a result of these cost-cutting efforts, according to the press release.
“The changes today are largely about reducing management layers, right-sizing in certain places, and reorganizing to be more efficient,” Shah said.

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General Motors and LG Energy Solution have indefinitely shelved plans to build a fourth battery cell plant in the U.S.
The Detroit automaker is expected to continue with its plans to build the plant but is searching for another partner.
GM and LG initially announced the joint-venture for a $2.3 billion plant in Ohio in December 2019, followed by other plants near GM operations in Michigan and Tennessee.

GM CEO and Chairman Mary Barra and LG Chem Vice Chairman and CEO Hak-Cheol Shin at the automaker’s battery lab in Warren, Mich., where the companies announced a new $2.6-billion joint venture on Dec. 5, 2019.

DETROIT – General Motors and LG Energy Solution have indefinitely shelved plans to build a fourth battery cell plant in the U.S., as talks between the two sides recently ended without an agreement, a person familiar with the plans confirmed to CNBC.
The Detroit automaker is expected to continue with its plans to build the plant but is searching for another partner, according to the person who asked not to be named because the talks are private.

“We’ve been very clear that our plan includes investing in a fourth U.S. cell plant, but we’re not going to comment on speculation,” GM said Friday in an emailed statement.
The Wall Street Journal first reported Friday afternoon that talks had stalled between GM and LG in part because LG Energy executives in Korea were hesitant to commit to the project given the rapid pace of its recent investments with other automakers as well as the uncertain macroeconomic outlook. 
The paper, citing unnamed sources familiar with the plans, said GM is in discussions with at least one other battery supplier to proceed with the fourth U.S. battery-cell factory.
The breakdown in talks comes after GM CEO Mary Barra and other executives have said they’ve been close to announcing details of the fourth plant, which was expected to be built in Indiana, for some time.
GM and LG initially announced the joint-venture for a $2.3 billion plant in Ohio in December 2019, followed by other plants near GM operations in Michigan and Tennessee. Only the Ohio plant is currently operating, while the others are under construction. The joint venture is called Ultium Cells LLC.

A spokeswoman for Ultium referred questions to GM and LG Energy, which did not immediately respond for comment.
The relationship between GM and LG Energy is crucial to the automaker’s future plans for EVs, including topping Tesla and others to become the U.S. leader in all-electric vehicle sales. The Detroit automaker is expected to release a handful of new EVs this year, including mass-market vehicles such as the Equinox, Blazer and Silverado.
GM, in its Friday statement, said its second and third plants with LG are on track to open as scheduled in 2023 and 2024, respectively. The company also confirmed it is on track to hit 1 million EV production capacity annually in North America in 2025.

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